Presentation for Business Results Ended March 2013 · Consolidated Cash Flows (Million yen) FY 2011...
Transcript of Presentation for Business Results Ended March 2013 · Consolidated Cash Flows (Million yen) FY 2011...
Presentation for Business Results Ended Presentation for Business Results Ended March 2013March 2013
May 2013May 2013
MITSUI MATSUSHIMA CO. LTD.MITSUI MATSUSHIMA CO. LTD.
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ContentsContents
•• FY2012 Financial ResultsFY2012 Financial Results P. 3P. 3
•• FY2013 Consolidated Earnings ForecastFY2013 Consolidated Earnings Forecast P. 10P. 10
•• Growth StrategyGrowth Strategy P. 14P. 14
•• AppendixAppendix P. 17P. 17
33
FY2012 Financial ResultsFY2012 Financial Results
44
Consolidated Income StatementConsolidated Income Statement
(Million yen) FY 2011 FY 2012 Yr/Yr Change
Net sales 98,063 84,009 (14,053)Operating profit 6,290 3,820 (2,470)
Non-operating profit 571 510 (61)Non-operating expenses 284 221 (63)
Ordinary profit 6,577 4,108 (2,468)Extraordinary profit 2,756 174 (2,581)Extraordinary loss 1,775 1,205 (569)
Net profit before income taxes 7,559 3,078 (4,480)Income taxes-current 2,772 1,279 (1,492)Corporate taxes-deferred (93) 99 192
Net profit 4,880 1,699 (3,180)
Net sales: In the Fuel Business (Coal sales and production), sales declined due to falling coal prices and a drop in sales volume.
Operating profit: In the Fuel Business (coal production), operating profit decreased due to the above drop in sales and an increase in operating costs at the Liddell Coal Mine.
Non-operating profit: Posted exchange rate gains of ¥93 million (drop of ¥213 million from the previous corresponding period), interest received of ¥268 million (up ¥55 million) and equity method investment returns (GDM) of ¥23 million.
Extraordinary profit: Posted subsidies received of ¥134 million. (A gain of ¥2,116 million on the sales of investment securities was posted in the previous fiscal year.)
Extraordinary loss: Posted investment securities valuation losses of ¥423 million, impairment loss on fixed assets of ¥344 million and fixed asset advanced depreciation deductions of ¥124 million.
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Consolidated Segment InformationConsolidated Segment Information
Business(Million yen)
FY 2011 FY 2012 Yr/YrChange
Fuel (Coal sales) 82,430 66,529 (15,900)
Fuel (Coal production) 19,163 16,093 (3,070)
Contract service 4,562 4,562
Construction material 3,112 3,064 (48)
Real estate 545 585 40
Recycling and ferroalloy 550 262 (288)
Others 2,833 2,439 (393)
Adjustment (10,573) (9,528) 1,044
Total 98,063 84,009 (14,053)
Business(Million yen)
FY 2011 FY 2012 Yr/YrChange
Fuel (Coal sales) 98 (38) (136)
Fuel (Coal production) 6,881 4,248 (2,632)
Contract service 32 32
Construction material (123) (189) (66)
Real estate 33 (15) (49)
Recycling and ferroalloy (594) (187) 406
Others (22) (35) (13)
Adjustment 17 5 (12)
Total 6,290 3,820 (2,470)
[Net sales] [Operating profit]
* Contract Service Business includes 100 million yen recorded as amortization for business closures. * Consolidated results include Nagata Engineering Co., Ltd. (Building Material Business segment) from FY2012 1Q.* MM Energy Co., Ltd. and SPC Tsuyazaki Solar Power Station No. 1 is consolidated as subsidiaries (Others) from FY2012 2Q.* MMI Indonesia Investment and MMI Doyles Creek were included as consolidated companies (Fuel: Coal production) from FY2012 3Q.* "Others” includes the Coal Mining Technique Transfer Business, Supermarket , Stevedore and warehouse business and Solar Power Generation Business.* Net sales represent sales before the elimination of inter-segment transactions.
Fuel Business (Coal sales and production): See “Breakdown of Fuel Business (Coal sales and production)” on the next slide. Contract Service Business: Started to record performance of M&M Service Co., Ltd., wholly acquired
subsidiary in July 2012, from second quarter. Building Material Business: Consolidate handled products and streamline personnel. Recycling and Ferroalloy Business: Downsized due to suspension of Ferroalloy Business.
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Breakdown of Fuel Business Breakdown of Fuel Business (Coal Sales and Production)(Coal Sales and Production)
(Million yen)FY 2011 FY 2012 Yr/Yr
Change
Coal salesSales volume(million tonnes)
82,4306.5
66,5296.02
(15,900)(0.48)
Coal productionSales volume(million tonnes)
19,1631.66
16,0931.56
(3,070)(0.1)
Adjustment (10,456) (9,427) 1,028Fuel Business Total 91,138 73,195 (17,942)
[Net sales] [Operating profit]
¥82.28
US$1.0201
US$203.03
US$122.06
¥79.10
¥12,684
FY 2011 Results
¥82.63Exchange rate US$/A$ (Settlement: Average rate during period)
Exchange rate ¥/US$ (Average rate)
US$160.96Average coal price: Semi-soft coking coal
US$1.0271Exchange rate US$/A$ (Average rate)
US$118.55Average coal price: Thermal coal
Coal production(Jan-Dec)
¥11,048Average coal price of import and salesCoal sales(Apr-Mar)
FY 2012 Result[Major index]
¥82.84
Coal Sales: Net sales declined due to a drop in coal prices and lower sales volume than planned.
Operating profit fell due to lower sales volume and a drop in sales commissions for certain brands.
Coal Production: Net sales declined due to a drop in coal prices and lower sales volume than planned.
Operating profit declined due to factors such as the above decline in sales and increased operation costs for maintenance of heavy machinery and coal preparation plant in Liddell Coal Mine.
(Million yen)FY 2011 FY 2012 Yr/Yr
Change
Coal sales 98 (38) (136)
Coal production 6,881 4,248 (2,632)
Adjustment
Fuel Business Total 6,979 4,210 (2,769)
77
Consolidated Balance SheetConsolidated Balance Sheet
Mar 31, 2012 Mar 31, 2013 Change
(Million yen)
Major changes
Amount(Million yen)
Share(%)
Amount(Million yen)
Share(%)
Current assetsFixed assets, Deferred assets
Total assets
17,81728,36146,178
38.661.4
100.0
20,31135,96956,280
36.163.9
100.0
2,4937,608
10,101
Accounts receivable +1,184, Cash and deposits +824Tangible fixed assets +3,104, Intangible fixed assets +3,744
Current liabilitiesFixed liabilities
Total liabilities
8,38410,94019,325
18.123.741.8
12,74612,40425,151
22.722.044.7
4,3611,4645,825
Accounts payable +2,416, Short-term debt +1,653Asset retirement liabilities +1,423
Total net assets 26,853 58.2 31,129 55.3 4,276 Net profit +1,699, Dividend payments-554, Currency exchange adjustments+2,531
Total liabilities and net assets 46,178 100.0 56,280 100.0 10,101
* Amount of assets and liabilities by incorporating M&M Service Co., Ltd. to the consolidated companies (as of the end of March 2013)- Assets +3,500 million yen, Liabilities +3,100 million yen
88
Consolidated Cash FlowsConsolidated Cash Flows
(Million yen)FY 2011 FY 2012 Change Main Factors
(FY 2012 )
Income before income taxes 7,559 3,078 (4,480)• Increased due to increase in short-term
loans Working capital (860) 1,272 2,133Others (1,615) 95 1,710
Cash flows from operating activities 5,083 4,446 (637)Changes in fixed assets (891) (487) 404 • Declined on purchase of machinery and
equipment at Mitsui Matsushima Australia
• Declined due to MMI Indonesia, M&M Service and Nagata Engineering stock acquisitions
• Increased due to reversal of fixed-term deposits (over 3 months)
Changes in investment securities 963 4 (958)Acquisition of consolidated subsidiary (2,474) (2,474)
Others (2,563) 257 2,821Cash flows from investment activities (2,492) (2,699) (207)
Changes in debt and bonds (5,114) (1,326) 3,787 • Declined due to repayment of long-term debt
Dividend payments (550) (551) (1)Others (21) (43) (22)
Cash flows from financial activities (5,685) (1,921) 3,764Effect of exchange rate change on cash and cash equivalents 127 800 673
Change in cash and cash equivalents (2,967) 625 3,592
Cash and cash equivalents, beginning of period 11,524 8,557 (2,967)
Cash and cash equivalents, end of period 8,557 9,182 625
99
Major Financial IndicatorsMajor Financial Indicators--Consolidated; actual performance for the past 5 yearsConsolidated; actual performance for the past 5 years
* The above figures are based on the annual securities report.
8.028.57 13.825.2111.08Return on assets (ROA) (%)
193.68174.91145.7185.97
0.390.650.992.76
10,58315,69819,90824,952
58.249.541.219.7
9,040 20,203 24,251 26,853
Book value per share (BPS) (yen)
Debt/equity ratio (times)
Balance of liabilities with interest (incl. bonds) (million yen)
Shareholders’ equity ratio (%)
Total net assets (million yen)
55.3
224.52
0.38
11,839
31,129
35.2032.3129.99(11.89)
4,8804,4803,463(1,251)
6,5772,5535,2504,251
6,2903,1024,8036,441
98,06387,65861,014107,691
Earnings per share (EPS) (yen)
Net profit (million yen)
Ordinary profit (million yen)
Operating profit (million yen)
Net sales (million yen)
12.26
1,699
4,108
3,820
84,009
FY 2011FY 2010FY 2009FY 2008 FY 2012
138,677 138,677
4.004.004.003.00
105,178 138,677 138,677
Dividend per share (yen)
Total number of shares outstanding (thousand)
5.00*
* Includes 1 yen commemorative
dividend
1010
FY2013 Consolidated Earnings ForecastFY2013 Consolidated Earnings Forecast
1111
FY 2013 Consolidated Earnings ForecastFY 2013 Consolidated Earnings Forecast
Net salesDespite the decline of coal price, Net sales is forecasted to increase due to rise of coal sales volume and increased revenue by the Yen's depreciation in A$/¥ in Fuel Business, adding to record of full year performance in Contract Service Business.
Operating profit, Ordinary profit, Net profitForecast a decline in profit in Fuel Business (coal production) due to declining coal prices.
* The forecasts above were created based on information available as of the date of this publication. Actual results may vary due to various factors occurring in the future.
17 5Net profit
9
6
10
870
Operating profit
Ordinary profit
Net sales
38
41
840
2
1
3
400
7
7
470
(29)
(11)
(31)
30
FY 2013 ForecastFY 2012 Results Change
1st half 2nd half Term(100 million yen) Term
1212
Consolidated Earnings Forecast by SegmentConsolidated Earnings Forecast by Segment
Business(100 million yen)
FY 2012 Result
FY 2013 Forecast
Yr/Yr Change
Fuel (Coal sales) 665 673 8
Fuel (Coal production) 161 175 14
Contract service 46 62 16
Construction material 31 32 1
Real estate 6 6 0
Recycling and ferroalloy 3 2 (1)
Others 24 25 1
Adjustment (95) (105) (10)
Total 840 870 30
Business(100 million yen)
FY 2012 Result
FY 2013 Forecast
Yr/Yr Change
Fuel (Coal sales) 0 0 0
Fuel (Coal production) 42 7 (35)
Contract service 0 1 1
Construction material (2) 0 2
Real estate 0 0 0
Recycling and ferroalloy (2) 0 2
Others 0 1 1
Adjustment 0
Total 38 9 (29)
[Net sales] [Operating profit]
* “Others” includes the Coal Mining Technique Transfer Business, Supermarket, Stevedore and Warehouse Business and Solar Power Generation Business.
* Net sales represent sales before the elimination of inter-segment transactions.
Fuel Business (Coal sales and production)Income is forecasted to decrease due to decline of coal sales price, though net sales will increase by the rise of coal sales volume and depreciation in A$/¥.
Contract Service Business Net sales will increase due to full year record of performance.
1313
Breakdown of Fuel Business Breakdown of Fuel Business (Coal Sales and Production)(Coal Sales and Production)
(100 million yen) FY 2012 Result
FY 2013 Forecast
Yr/Yr Change
Coal salesSales volume (million tonnes)
6656.02
6736.38
80.36
Coal production Sales volume(million tonnes)
1611.56
1751.79
140.23
Adjustment (94) (105) (11)
Fuel Business Total 731 743 12
[Net sales] [Operating profit]
¥82.63
US$1.0271
US$160.96
US$118.55
¥82.84
¥11,048
FY 2012 Result
¥100.00Exchange rate ¥/A$ (Settlement: Average rate during period)
¥97.00Exchange rate ¥/US$ (Average rate)
US$117.00Average coal price: Semi-soft coking coal
US$1.0300Exchange rate US$/A$ (Average rate)
US$97.00Average coal price: Thermal coal
Coal production(Jan-Dec)
¥10,500Average coal price of import and salesCoal sales(Apr-Mar)
FY 2013 Forecast[Major index]Impact of foreign
exchangerates on net profit
US$/A$Approx. ¥90 million
profit gain per A$0.01 decline
A$/¥Approx. ¥10 million
profit gainper ¥1 decline
(100 million yen) FY 2012 Result
FY 2013 Forecast
Yr/Yr Change
Coal sales 0 0 0
Coal production 42 7 (35)
Adjustment
Fuel Business Total 42 7 (35)
1414
Growth StrategyGrowth Strategy
1515
Growth StrategyGrowth Strategy
Increase profitability by securing mining rights for new coal mines
Stabilize and diversify profitability by developing new business
Realize projects of developing new coal mine making full use of our three strengths: Technical skills in Mining, Planning and proposing capabilities and Sales ability to leading customers
Develop new businesses in non-coal fields
1616
Growth Strategy Topics in FY2012 Growth Strategy Topics in FY2012
Strengthen revenue sources in Fuel Business
May 2012:May 2012: Basic agreement for gradual acquisition of Basic agreement for gradual acquisition of DoylesDoylesCreek Coal Mine (Australia Creek Coal Mine (Australia NuCoalNuCoal Resources Ltd) Resources Ltd) interests interests
July 2012:July 2012: Stock acquisition of PT Stock acquisition of PT GerbangGerbang DayaDaya MandiriMandiri(Indonesia GDM Coal Mine) stock acquisition (Indonesia GDM Coal Mine) stock acquisition
Increase handling Increase handling coal interestscoal interests
May 2012:May 2012: Acquisition of Nagata Engineering Co., Ltd. Acquisition of Nagata Engineering Co., Ltd. Developing unique engineering business as the only company in Japan with coal preparation technology
For comprehensive For comprehensive coal business coal business development development
Enhance revenue base through new businesses
Jul 2012:Jul 2012: Acquisition of M&M Service, Co., Ltd. Acquisition of M&M Service, Co., Ltd. Contract Service business for lodging and recreational facilities held by private companies and local governments. Diversify GroupDiversify Group’’s s
revenue sourcesrevenue sources
Mega-Solar Tsuyazaki Solar Power Station No. 1
Tsuyazaki, Fukutsu, Fukuoka, Japan
August 2012:August 2012: Started solar power generation business, founding Started solar power generation business, founding MM Energy Co., Ltd. MM Energy Co., Ltd. • Renewable energy business utilizing company’s idle lands. • From March 2013 - Tsuyazaki Solar Power Station No. 1 began
generating 2MW• Tsuyazaki Solar Power Station No. 2 is under construction.
Planned to begin generating 2MW from September 2013
1717
AppendixAppendix
1818
Development of Overseas Resources and Energy Businesses
As of April 24, 2013
Xstrata Coal Canada Resources Ltd.(exclusive marketing rights in Japan)
Rossin Coal MineCoking coal/PCI (development planned) Resources: 240 Mt
Cline Mining Corp. (exclusive marketing rights in Japan)
New Elk Coal Mine Coking coal (under development)
Reserves: 618.9 Mt
IndonesiaIndonesia
CanadaCanada
USUS
AustraliaAustralia
Walter Energy Inc. (shares owned/exclusive marketing rights in Japan)
Jan-Dec 2012
Brule Coal Mine Production volume: 1.83 Mt
Wolverine Coal Mine Production volume: 1.82 Mt
Willow Creek Coal Mine Production volume: 870,000 t
PT. Anugerah Bara Kaltim
ABK Coal Mine (exclusive marketing rights in Japan)Thermal coal; production volume: 6.6 Mt (CY12)
PT Gerbang Daya Mandiri(30% capital investment/ Exclusive marketing rights in Japan )
GDM Coal Mine Thermal coal; production volume: 400,000 t (CY12) [open-
cut mining](Underground mining: 1Mt/year planned production)
Tiger Energy Trading Pte. Ltd.(Exclusive marketing rights to certain customers in Japan)
JMB Coal MineThermal coal; production volume: 8.1 Mt (CY12)
Sebuku Coal MineThermal coal; production volume: 3.3 Mt (CY12)
Liddell Joint Venture (32.5% ownership/exclusive marketing rights in Japan)
Liddell Coal Mine Coking coal: 25%; Thermal coal 75%
Production capacity: 7.5 Mt (CY12)
New Proposals: Doyles Creek Coal development proposal (planned annual production: 5Mt)
Square Exploration (exploration activities)
ChinaChina
■Shenhua Group and Jincheng Group
Collaborating with Shenhua Group and JinchengGroup on sales of coal products for Japanese market.
1919
Coal Business Organizational ChartCoal Business Organizational ChartAs of December 31, 2012
Capital investment (ratio)Return of profitsFlow of coal sales
Consolidated subsidiary
Capital investment ratio less than 20%
100%Dividend
Profit
Dividend 100%
Profit/Dividend
Dividend 100%
Mitsui Matsushima Co., Ltd.
MITSUI MATSUSHIMA INTERNATIONAL PTY.LTD. MITSUI MATSUSHIMA INTERNATIONAL PTY.LTD. (MMI)(MMI)
PT Gerbang Daya Mandiri(Indonesia)• GDM Coal Mine operations
* Equity method applied
Liddell Joint Venture(Australia)• Liddell Coal Mine operation
Hold equity 30%
Interest32.5%
Customers
Walter Energy Inc. (US)Walter Energy Inc. (US)• Brule Coal Mine (Canada)• Wolverine Coal Mine (Canada)• Willow Creek Coal Mine (Canada)
Tiger Energy Trading Pte. Ltd. Tiger Energy Trading Pte. Ltd. (Singapore)(Singapore)
• JMB Coal Mine (Indonesia)• Sebuku Coal Mine (Indonesia)
PT. PT. AnugerahAnugerah Bara Bara KaltimKaltim (Indonesia)(Indonesia)• ABK Coal Mine (Indonesia)
Cline Mining Corp. (Canada)Cline Mining Corp. (Canada)• New Elk Coal Mine (US)
* Initial production stages
MMI Indonesia Investments Pty Ltd
MITSUI MATSUSHIMA AUSTRALIA PTY. LTD.
2020
Liddell Coal Mine Liddell Coal Mine in Australia 1in Australia 1
Operation: JV between Mitsui Matsushima Australia Pty Ltd.(32.5%) and Xstrata PLC (67.5%) JORC Resource: 660 million tonnes
Measured: 104 Mt; Indicated: 213 Mt; Inferred: 344 MtOpen-cut: 410 Mt (reserves: 65 Mt); Underground 250 Mt)
Productivity: 12,255 tonnes (cleaned coal)/person/year (2012 actual)(Entire NSW, Australia productivity: 7,160 tonnes/person/year (Total of open cut and underground, 2011-2012))
Production Capacity: 7.50 million tonnes/year (Maximum capacity for the coal preparation plant)
AustraliaAustralia
CanberraSydney
Queensland
Northern Territory
SouthAustralia
WesternAustralia
Victoria
New SouthNew SouthWalesWales
Newcastle
Liddell Coal MineLiddell Coal Mine
Port
Mitsui Matsushima International Pty. Ltd.Mitsui Matsushima Australia Pty. Ltd.
World’s largest coal port
Good location: About 107 km to the port
2121
Mining site, Liddell Coal Mine
Liddell Coal Mine production (raw coal): Results and plan
Liddell Coal Mine Liddell Coal Mine in Australia in Australia 22
As of Dec. 31, 2012
Liddell (total)
(Ten thousand tonnes)
507
712687682
556
Owner operation started
Mitsui Matsushima portion
2222
Coal Import and Sales Trends Coal Import and Sales Trends (By type of coal)(By type of coal)
Thermal coal
Coking coal
Thermal coal
Coking coal
Sales by type of coal
Sales volume by type of coal
0
20
40
60
80
100
FY 2010 FY 2011 FY 2012 FY 2013
67.1(planned)
74.182.4
66.5
0
200
400
600
800
FY 2010 FY 2011 FY 2012 FY 2013
675 650 (planned)602
650
Billion yen
Ten thousand tonnes
Iron andSteel64%
Electricity24%
Cement4%
GeneralIndustry
8%
Iron andSteel61%
Cement5%
Electricity24%
GeneralIndustry
10%
Iron andSteel63%
Cement3%
Electricity23%
GeneralIndustry
11%
Iron andSteel63%
Cement4%
Electricity25%
GeneralIndustry
8%
Iron andSteel65%
Electricity22%
Cement3%
GeneralIndustry
10%
Iron andSteel73%
Electricity18%
Cement3%
GeneralIndustry
6%
Iron andSteel71%
Electricity20%
Cement3%
GeneralIndustry
6%
Iron andSteel70%
Electricity20%
Cement3%
GeneralIndustry
7%
2323
FY 2013 (¥67.1 billion) Planned
FY 2010 (¥74.1 billion) FY 2012 (¥66.5 billion)FY 2011 (¥82.4 billion)
Coal Imports and Sales by Customer IndustryCoal Imports and Sales by Customer Industry
FY 2013 (6.50 Mt) Planned
FY 2012 (6.02 Mt)FY 2011 (6.50 Mt)FY 2010 (6.75 Mt)
Coal sales by customer industry
Coal sales volume by customer industry
2424
Impact of Exchange RateImpact of Exchange Rate
Coal sales: Coal sales in Coal Production Business are based on US dollars. Mitsui Matsushima Australia (“MMA”)- non-consolidated profit and loss: For MMA, our Australian company, coal sales are converted
to Australian dollars, and accounting for profit and losses is proceeded in Australian dollars. Mitsui Matsushima Group- consolidated profit and loss: Accounting for consolidated profit and loss of the Mitsui Matsushima Group
is proceeded in Japanese yen after conversion of the profit and loss items of MMA.
Net salesSales costGeneral expenses
Operating profitNon-operating P&L
Ordinary profitExtraordinary P&LCorporate tax
Net profit
Coal Sales
US $US $
MMANon-consolidated
P&LAustralian $Australian $
Net salesQuantity x Price (US$)
Net salesSales costGeneral expenses
Operating profitNon-operating P&L
Ordinary profitExtraordinary P&LCorporate tax
Net profit
Exchange Exchange RateRate
ConversionConversionUS$ A$
Mitsui MatsushimaConsolidated
P&LJapanese Japanese ¥¥
Exchange Exchange RateRate
ConversionConversion
A$ ¥
2525
M&M Service Co., Ltd.M&M Service Co., Ltd.
Mitsui Matsushima acquired all shares in July 2012 Business details: Management of lodging facilities, as well as consigned management of recreational facilities, training institutes,
and other facilities owned by private companies and local municipalities. Future developments: Promote consigned management services, including in the Kyushu region, to support stabilization and
diversification of group’s income
"OYADO"OYADO--NET"NET" http://www.oyadonet.com/
A website operated by M&M Service that provides information about recreational facilities and lodgings owned by major corporations and local governments.
<Example of facilities><Example of facilities>
Resort – KUMANO CLUB in Mie
Keburikawa Resort in Kyoto
Hotel Fuuka in Yatsugatake
2626
These materials contain forward-looking statements that are in no way guarantees of future performance. Future performance is affected by risks and uncertainties. Future performance may vary due to changing assumptions and conditions in the business environment. These materials should not be relied on as the sole source of information, and should be used with discretion. Mitsui Matsushima Co., Ltd. is in no way responsible for any damages caused as a result of relying on or using these materials.
IR InquiriesGeneral Affairs Dept., Business Planning Dept.TEL +81-92-771-2171
MITSUI MATSUSHIMA CO. LTD.MITSUI MATSUSHIMA CO. LTD.