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Sojitz Corporate Presentation 2012

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Page 1: Sojitz Company Presentation 2012
Page 2: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201122

The Sojitz Group produces new sources of wealth by

connecting the world’s economies, cultures and

people in a spirit of integrity.

Sojitz is committed to delivering new value to society through

innovative thinking unconstrained by conventional wisdom.

Group Symbol

Group Statement

Group Slogan

Page 3: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 20113

About the Sojitz Group

Group Management Vision

The position the Sojitz Group seeks to achieve

Unrelentingly enhance the Group's trading company functions, as

demanded by clients, by fully grasping and anticipating clients' diverse

needs (Function-oriented trading company)

Take advantage of changes and continuously develop new business

fields (Innovating trading company)

Become a company in which each and every employee can work with

pride and pursue challenges and explore opportunities to realize his or

her own personal goals and ambitions (Open and flexible company)

Seek to harmonize the Group's corporate activities with the society

and the environment by consistently putting the Group's Statement

into practice (Socially contributive company)

Page 4: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 20114

The History of Sojitz Group

Nissho Company1902 Suzuki & Co., Ltd. established

Iwai Sangyo Company1896 Iwai & Co., Ltd. established

Nichimen Corporation1892 Japan Cotton Trading Co., Ltd.

established

Nissho Iwai Corporation1968 Nissho Company and Iwai

Sangyo Company merged

2003 Nissho Iwai-Nichimen Holdings Corporation established through the transfer of shares by Nichimen Corporation and Nissho Iwai Corporation, which become its subsidiaries

1982 Company name changed

to Nichimen Corporation

2004 Subsidiaries Nichimen Corporation and Nissho Iwai Corporation merged to form Sojitz CorporationName of holding company changed to Sojitz Holdings Corporation

2005 Sojitz Holdings Corporation merged with subsidiary Sojitz Corporation and company name changed to Sojitz Corporation

Page 5: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 20115

Corporate Data

Company Name Sojitz Corporation

Established April 1, 2003

Capitalization 160,339 million yen

President & CEO Yoji Sato

Head Office1-20, Akasaka 6-chome, Minato-ku,

Tokyo 107-8655, Japan

TEL +81-3-5520-5000

FAX +81-3-5520-2390

URL http://www.sojitz.com/en

Corporate

Governance ModelBoard of Corporate Auditors

Stock Exchange Listings Tokyo, Osaka

(As of April 1, 2012)

Page 6: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 20116

Financial Information

Consolidated Financial Highlights

(Year ended March 31, 2012) (As of March 31, 2012)

Net sales \4,494.2 billion

Ordinary income \62.2 billion

Net income \(3.6billion)

Total assets \2,120.6 billion

Net assets \330.5 billion

Equity ratio 14.4%

Net interest-bearing debt \647.8 billion

Net DER 2.1 times

Page 7: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 2011 7

Sojitz Group's Global Network

Number of Branches & Offices

Domestic: 7Overseas: 91

Number of Subsidiaries & Affiliates

Domestic: 140Overseas: 363

Number of Employees

Non-consolidated: 2,277 Consolidated: 16,302

(As of December 31, 2011)

The Sojitz Group is a general trading company with a worldwide

network comprising over 500 group companies and operations

in some 50 countries.

Page 8: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 20118

Sojitz Organizational Chart

General Shareholders’

Meeting

Risk Management Planning Dept.

Corporate Auditor’s Office

Nomination Committee

Remuneration Committee

Management Committee

Internal Audit Dept.

Board of Directors

Chairman

President & CEO

Board of Corporate Auditors

Corporate Auditors

Risk Management Dept. 1

Risk Management Dept. 2

Legal Dept.

Internal Control Administration Dept.

IT Planning Dept.

Finance Dept.

Forex & Securities Dept.

Structured Finance Dept.

Corporate Accounting Dept.

Asset Management Dept.

Secretariat Dept.

Human Resources & General Affairs Dept.

Public Relations Dept.

Corporate Planning Dept.

Regional Coordination & Administration Dept.

Investor Relations Office

Machinery Division

・Automotive Unit

・Infrastructure Project & Industrial Machinery Unit

・Marine & Aerospace Unit

Energy & Metal Division

・Energy Unit

・Coal & Nuclear Unit

・Steel & Mineral Resources Unit

Consumer Lifestyle Business Division

・Foods Resources Unit

・Agriculture & Forest Resources Unit

・Consumer Service & Development Unit

Chemicals Division

・Chemicals Unit

・Ecological Materials & Resources Unit

(As of April 1, 2012)

Logistics & Insurance Dept.

Page 9: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 20119

Sojitz Group Snapshot

Japan China Asia & Oceania The Americas Europe, Russia & NIS Middle East & Africa

Mach

inery

Div

isio

n

Smart city related business

Renewable Energy

Export of automobiles

Industrial machinery

Commercial aircraft sales representative

Sales and brokerage of ships, ship chartering, sale of ship equipment

Sales of IT and related equipment; solutions and service; data centers

Smart city related business

Water business

Automobile dealerships

Industrial machinery

Plants

Smart city related business

Water business

Transportation infrastructure

Renewable Energy

Automobile assembly, sales, and distribution

Industrial machinery

Plants and IPP

Business jets

Transportation infrastructure

Renewable Energy

Automobile assembly, sales and distribution; automobile dealerships

Industrial machinery

IT infrastructure and service

IPP

Automobile distribution

Industrial machinery

Plants

New building orders, ship chartering

Renewable Energy

Renewable Energy

Water business

Plants and IPP

En

erg

y &

Meta

l D

ivis

ion

Sales of various types of energy (LNG, petroleum products, coal, etc.)

Service station and tank storage operation

Sales of steel-making materials (iron ore, coal, etc.)

Sales of various rare metals and industrial minerals

Steel products

Sales of coal

Sales of industrial minerals

Sales of various rare metals

Sales of iron ore

Coal mines and coal trading

LNG

Trading of petroleum products

Rare metals (nickel, cobalt)

Nonferrous metals (alumina)

Development of iron mines and iron ore trading

Oil and gas, including unconventional oil and gas

Production of bioethanol; biopower generation

Nonferrous metals (copper)

Rare metals (molybdenum, niobium)

Iron ore trading

Oil and gas

Nuclear fuel enrichment

Sales of biofuel

Rare metals (tungsten)

Oil and gas

LNG

Rare metals (vanadium, ferrochrome)

Ch

em

icals

D

ivis

ion

Sales and import of rare earths, lithium compounds and industrial salt

Sales of solvents and thinners

Plastic resins

Sales of electronic materials

Sales of cellulose

Sales of cosmetics

Procurement of rare earths

Sales of organic chemicals

Sale of resin compounds

Manufacture and sales of methanol

Rare earth mines

Manufacture and sales of marine chemicals (potash, industrial salt)

Sales of flat-panel display materials

Sales of plastic resins

Manufacture and sales ofdicyclopentadiene

Manufacture and sales of Metton® resins

Sales of butadiene

Manufacture and sales of packaging materials

Manufacture and sale of packaging materials

Sales of solvents

Sales of industrial films

Sales of plastic resins

Co

nsu

mer L

ifesty

le

Bu

sin

ess D

ivis

ion

Sales of various foodstuffs and food materials

Sales of grain and feed Sales of processed seafood Fish farming Tobacco Import of brand sundries Airport retail OEM textiles Apparel brands Import and sale in Japan of

timber, plywood, etc.

Foodstuff logistics

Manufacture and sales of apparel

Sales of lumber

Chemical fertilizers Wholesaling of foodstuffs Flour mills, port silos Feed Fish farming Woodchips and afforestation Industrial park development Sales of grain Bread production Rice bran oil

Agriculture

Meat processing and packing

Sporting goods

Production of ingredients for bread

Consolidation and sales of specialized grain

Grain-related business

Lumber trading

Food

Woodchips

Page 10: Sojitz Company Presentation 2012

Overview of Operations

Page 11: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201111

Machinery Division

Businesses

Completely built-up (CBU) vehicle export

business; local vehicle assembly, manufacturing

and sales business; wholesale and retail

business; component and tire exports;

automotive equipment and engineering business

Automotive Business

Expanding the earnings base through cost-

competitive products in growing markets

Headquarters of Hyundai de Puerto Rico

Businesses

IPP business

Plants (steel, fertilizer&chemical, energy, power)

Industrial machinery and production systems

(surface mounters, bearings, equipment related

to the environment and new energy, etc.)

IPP Business, Plant Business

Expertise in IPP business as well as large-scale

plant business

Fertilizer plant of Fatima Fertilizer Company Ltd.

Automotive UnitInfrastructure Project &Industrial Machinery Unit

Page 12: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 2011 12

Machinery Division

Businesses

Newbuilding, second-hand ships, ship chartering,

ship equipment sales business and ship-owning

business

Commercial aircraft sales representative for The

Boeing Company, Bombardier Inc., etc.; defense

equipment agency and sales business; business-jet

business

Marine and Aerospace BusinessesComprehensive strengths in the marine business and the top share of the domestic commercial aircraft agency business

The Buenos Aires owned by Sojitz

Marine & Aerospace Unit

Boeing 787 Dreamliner

IT Business Dept.

Businesses

Sales and maintenance of communications and IT

equipment; systems integration

Software development and sales

Data centers, cloud services and managed services

Business Process Outsourcing (BPO) and Information

Technology Outsourcing (ITO)

High-speed Internet backbone routers

from Juniper Networks, Inc.

Environment & Urban Infrastructure Development Office

Businesses Transport infrastructure business

Renewable Energy business

Water business

Smart city related businesses

Mega-Solar Power Business in Germany

Page 13: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201113

Energy & Metal Division

Businesses

Oil, natural gas, LNG, gasoline, light oil, heavy

oil, jet fuel, and bio fuel

Other

Energy Development

Promoting acquisition of upstream energy interests and

securing regionally balanced interests

Al Karkara Oil Field, offshore Qatar

Businesses

Coal (thermal coal, PCI coal, coking coal)

Nuclear fuel cycle services and nuclear

equipment

Coal and Nuclear Business

• Pursuing synergies between trading and investment of

upstream coal concessions, and providing stable supply

to customers

• Providing a full range of services of nuclear fuel cycle

Lake Vermont Coal Mine in Australia

Energy Unit Coal & Nuclear Unit

Page 14: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201114

Energy & Metal Division

Businesses Iron ore, iron ore pellets, hot briquetted iron Rare metals (molybdenum, niobium, vanadium, tungsten, etc.) Industrial minerals (fluorite, zircon, etc.) Silicon Metal Non-ferrous metals (bauxite, alumina, copper concentrates,

copper, etc.) Other

Ferrous Materials & Non-Ferrous Metals BusinessPromoting trading and investment of upstream concessions for a variety of ferrous materials and non-ferrous metals.

Araxá plant of Companhia Brasileira de Metalurgia e Mineração (CBMM) in Brazil

Steel Mineral & Resources Unit

Page 15: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201115

Chemicals Division

Businesses

Basic chemicals: Ketone, ethanol, methanol, tank operation

Speciality chemicals: metton, synthetic rubber, resin, synthetic raw material

Metton® Business

A new environmentally friendly molding material

Chemicals Unit

Methanol Business

Rising demand as a chemical raw material as well

as for fuel applications

Methanol manufacturing facilities in Indonesia

Page 16: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201116

Chemicals Division

Businesses

Chemical resources: Import and overseas sales of industrial salt; import and sales of rare earths and lithium

Functional materials: Export and import of carbon fiber and cellulose; sales of high-performance nonwoven

cloth

Advanced electronic materials: Sales of flat-panel displays (FPD); sales of printed circuit boards

Industrial Salt Business

A key raw material for basic chemicals, with broad

applications

Salt stocks before shipment in India

Ecological Materials & Resources Unit

Rare Earth Business

Stable supply and production of important

resources which is now an essential part of the

infrastructure of modern societies

Neodymium iron boron alloy

Page 17: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201117

Consumer Lifestyle Business Division

Businesses

Grains and feed materials: Wheat, soybeans,

corn, rice, pasture, compound feed, etc.

Food raw materials: Sugar, coffee, oil and fat,

flour, flour milling, etc.

Marine products: Tuna, shrimp, processed

seafood and fish farming

Agribusiness: Chemical fertilizer and agriculture

Overseas Wheat and Flour Milling BusinessInterflour Vietnam Ltd. aim to become Vietnam’s leading flour milling company

IFV’s flour mill, silos and port facilities

Businesses

Agribusiness: Chemical fertilizer and agriculture

Forest products: Import, offshore trading and

sales in Japan of timber, lumber, plywood,

building materials, woodchips, pulp, etc.;

overseas afforestation and woodchip production

businesses

Foods Resources Unit Agriculture & Forest Resources Unit

A plantation site in South Africa forsupplying woodchip materials

Woodchip and Afforestation Businesses

Developing woodchip businesses in Africa, in

addition to Asia and Australia

Page 18: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201118

Consumer Lifestyle Business Division

Businesses

Retail: Imported brand sundries business including cigarettes and shoes; retail business at airports with

JALUX; overseas consumer products, wholesale, and distribution

Textiles: OEM and apparel brand business

Real estate: Condominium development, overseas industrial park development, etc.

Overseas Industrial Park Business

Developing, selling lots in and managing industrial

parks in rapidly growing Asia

Long Binh Techno Park in Vietnam

Consumer Service & Development Unit.

Casual shoe brand

“Admiral”

Brand and Retail BusinessesA brand business at the leading edge of diversifying lifestyles and changing consumer psychology and awareness

Page 19: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201119

The Sojitz Group’s CSR

Main Social Contribution Initiatives・Establishment of the Sojitz Reconstruction and Education Fund

(A scholarship program for college students affected by the

Great East Japan Earthquake and Tsunami)

・Pre-School Education Support Project in Tanzania

(Improvement of the educational environment for pre-school

children)

・Support for the Sojitz Foundation

(Assistance for foreign students studying in Japan, grants for

international exchanges, etc.)

Children in Tanzania studying in a

better environment as a result of a

pre-school education support project

Sojitz Group CSR Policy and CSR Priority Themes

As a member of society, the Sojitz Group aims to build a harmonious relationship with society and the

environment while respecting diverse cultures and values. We proactively conduct CSR initiatives as a

management priority.

Promotion of CSR Supply Chain Management

For the Sojitz Group, which conducts business on a

global scale, promoting CSR in supply chains is

important. We have formulated CSR Action

Guidelines for Supply Chains, conduct surveys of

suppliers, and are working in other ways to build

sustainable supply chains with our business partners.

Sojitz Group

Supply Chain CSR website

CSR Priority Themes Promotion of CSR Supply Chain Management

Promotion of Businesses That Contribute to Preventing Climate Change

Promotion of Businesses That Contribute to the Advance of Developing

and Emerging Countries

Establishment of Personnel Systems and Workplace Environments That

Enable All Employees to Flourish

Sojitz Group CSR PolicyWe will strive to do business in

harmony with society and the

environment, consistently honoring

the Sojitz Group Statement.

Page 20: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 201120

Contributing to Addressing Social Issues

through Business

Sojitz has designated the new energy and

environment business as a new growth field and

develops environment and renewable energy

businesses that help prevent climate change.

Contributing to Reducing Reliance on

Fossil FuelsIn Brazil, Sojitz has been working since 2007 to

establish an integrated business from sugar cane

cultivation to bioethanol and sugar production.

Plant of ETH Bioenergia S.A.

A variety of issues, including the establishment of

infrastructure, as well as food and energy, must be

resolved in order for developing and emerging

countries to prosper.

Sojitz conducts businesses that take advantage of its

functions as a general trading company to help

resolve these issues.

Contributing to Industrial DevelopmentSojitz won an order for a project in the Republic

of Tatarstan, Russia to construct a urea fertilizer plant.

Production is scheduled to begin in 2015. The plant is

expected to contribute to the development of industry

and agriculture in Russia.

Signing ceremony for the fertilizer plant construction project

Businesses That Contribute to Preventing

Climate Change

Businesses That Contribute to the Advance of

Developing and Emerging Countries

Here are some examples of how we contribute to addressing social issues through our business activities.

Page 21: Sojitz Company Presentation 2012

Copyright © Sojitz Corporation 20112121

The Sojitz Group produces new sources of wealth by

connecting the world’s economies, cultures and

people in a spirit of integrity.