Sojitz presentation 2014 04-01

Copyright © Sojitz Corporation 2014 2

Sojitz Group Statement

The Sojitz Group creates value and

prosperity by connecting the world with a

spirit of integrity.

Group Symbol

Group Statement

Group Slogan


The History of Sojitz Group

Nissho Company 1902 Suzuki & Co., Ltd. established

Iwai Sangyo Company 1896 Iwai & Co., Ltd. established

Nichimen Corporation 1892 Japan Cotton Trading Co., Ltd.

established

Nissho Iwai Corporation 1968 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 Corporation Name of holding company changed to Sojitz Holdings Corporation

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

2014 10th Anniversary of Sojitz Corporation


Corporate Data

Company Name Sojitz Corporation

Established April 1, 2003

Capitalization 160,339 million yen

President & CEO Yoji Sato

Head Office 1-1, Uchisaiwaicho 2-chome,

Chiyoda-ku, Tokyo 100-8691, Japan

TEL +81-3-6871-5000

FAX +81-3-6871-2430

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

Corporate

Governance Model Board of Corporate Auditors

Stock Exchange Listings Tokyo Stock Exchange

(As of December 31, 2013)

http://www.sojitz.com/

http://www.sojitz.com/


Financial Information

Consolidated Financial Highlights（JGAAP）

(Year ended March 31, 2013) (As of March 31, 2013)

Net sales \3,955.9 billion

Ordinary income \34.5 billion

Net income \14.3 billion

Total assets \2,086.4 billion

Net assets \382.5 billion

Equity ratio 16.9%

Net interest-bearing debt \616.2 billion

Net DER 1.74 times

Credit Ratings

* Corporate credit ratings are set by credit rating companies, which are third-party institutions, based on their own survey results. These ratings assess the level of certainty and financial stability of the company itself and whether it pays the principal and interest of corporate bonds issued by the company as promised.

* Issuer credit ratings refer to the company's comprehensive ability to fulfill its obligations. The senior unsecured debt ratings cover obligations of more than one year senior unsecured debt, while the short-term credit ratings are for obligations of less than one year.

Japan Credit Rating Agency, Ltd. (JCR)

Moody's Investors Service

Rating and Investment Information, Inc. (R&I)

Standard & Poor's (S&P)

Issuer Credit Ratings

Senior Unsecured Debt Ratings

Short-term Ratings

BBB BBB J-2

Ba1 - -

BBB - a-2

BBB - BBB -

(As of January 31, 2014)


Sojitz Group's Global Network

Number of Branches & Offices

Domestic: 7 Overseas: 87

Number of Subsidiaries & Affiliates

Domestic: 120 Overseas: 320

Number of Employees

Non-consolidated: 2,253 Consolidated: 15,922

(As of December 31, 2013)

The Sojitz Group is a general trading company with a worldwide

network comprising over 400 group companies and operations

in some 50 countries.


Sojitz Organizational Chart

General Shareholders’

Meeting

Internal Control Administration Dept.

Board of Directors

President & CEO

Board of Corporate

Auditors

Corporate Auditors

IT Planning Dept.

Public Relations Dept.

Corporate Accounting Dept.

Forex & Securities Dept.

Risk Management Planning Dept.

Risk Management Dept.

Structured Finance Dept.

Finance Dept.

Global Business Support & Promotion Dept.

Legal Dept.

Human Resources & General Affairs Dept.

Internal Audit Dept.

Corporate Planning Dept.

Logistics & Insurance Dept.

Investor Relations Office

Machinery Division

・Automotive Unit

・Infrastructure Project & Industrial Machinery Unit

・Marine & Aerospace Unit

Energy & Metal Division

・Energy Unit

・Metal & Utility Unit

Consumer Lifestyle Business Division

・Foods & Agriculture Business Unit

・Forest Products & Lifestyle Unit

Chemicals Division

・Chemicals Unit

・Ecological Materials & Resources Unit

Secretariat Dept.

Asset Management Dept.

Investment Management Dept. (As of April 1, 2014)


Japan China Asia & Oceania The Americas Europe, Africa, Middle

East, Russia & NIS

Mach

inery

D

ivis

ion

Export of automobiles

Renewable Energy

IPP

Industrial machinery

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

Commercial aircraft sales representative

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

Business jets

Plants


Automobile assembly, sales, and distribution

Plants and IPP

Renewable Energy

Transportation infrastructure

Water business


Automobile assembly, sales and distribution; automobile dealerships

IPP

Renewable Energy

Transportation infrastructure


IT infrastructure and service

Automobile distribution

Plants and IPP

Renewable Energy

Water business


New building orders, ship chartering

En

erg

y &

Meta

l D

ivis

ion

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

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

Sales of steel products

Sales of various rare metals

Sales and trading of various types of industrial minerals

Sales and trading of coal

Sales of iron ore

Sales and trading of various rare metals

Sales and trading of various types of industrial minerals

Lime production

Logistics and trading of petroleum products

LNG

Coal mines and coal trading

Development of iron mines and iron ore trading

Rare metals (nickel)

Nonferrous metals (alumina)

Oil and gas development, including unconventional oil and gas

Iron ore trading

Rare metals (molybdenum, niobium)

Nonferrous metals (copper)

Oil and gas development

LNG

Trading of coal

Nuclear fuel enrichment

Rare metals (tungsten, vanadium, ferrochrome) mines and trading

Trading of various precious metals (palladium, platinum, etc.)

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 of dicyclopentadiene

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 food materials Sales of grain and feed Sales of processed seafood Fish farming Sugar manufacturing Confectioneries Tobacco Brand items, brand-name apparel Airport retail OEM textiles Import and sales of timber, plywood,

etc.

Foodstuff logistics

Confectionery ingredient processing

Seafood processing

Manufacture and sales of apparel

Sales of lumber

Chemical fertilizers Food wholesales Flour mills, port silos Feed Fish farming Woodchips and afforestation Brand items Industrial park development and

operation Sales of grain Bread production Rice bran oil

Agriculture

Livestock raising

Sporting goods

Production of ingredients for bread

Consolidation and sales of specialized grain

Food

Lumber trading

Woodchips

(As of April 1, 2014)

Overview of Operations

Copyright © Sojitz Corporation 2014

Machinery Division

10

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, Renewable Energy, Transportation,

Water business

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

Industrial machinery and production systems

(surface mounters, bearings, equipment related to

the environment and new energy, etc.)

Hot strip mill for Tata Steel’s new integrated steel mill

in India

Automotive Unit Infrastructure Project & Industrial Machinery Unit

IPP Business, Plant Business

Expertise in IPP business as well as large-scale plant

business


Machinery Division

11

Businesses

Newbuilding, second-hand ships, ship chartering,

ship equipment sales business and ship-owning

business

Commercial aircraft sales representative Military

Aircraft & Equipment Sales Representative for The

Boeing Company, Bombardier Inc., etc.; defense

equipment agency and sales business; business-

jet business

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

Western Tokyo

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.

The Ishikari Data Center

of Sakura Internet Inc.



1

2

Energy Unit

Products

Oil, natural gas, LNG （Liquefied Natural Gas）, LPG （Liquefied Petroleum Gas）, heavy oil, light oil

LNG Vessel Block 1SE, offshore Qatar

Oil and Gas Business

•Promoting a regionally balanced securement and development of upstream oil and gas interest

•In the oil and gas logistics and trading business, .

engaging in import/off-shore/domestic trading

business of petroleum products

LNG Business

•Investment in large-scale LNG project in Asia and

the Middle East through LNG Japan（a group

company owned 50% by Sojitz）

•Considering LNG export from West African region,

and North America where shale gas development is

in progress

•LNG spot imports and off-shore trading



1

3

Metal & Utility Unit

Products

CBMM Araxá Mine, Brazil Jellinbah East Coal Mine in Australia

Iron ore, iron ore pellets, hot briquetted iron, coal (coking coal, PCI coal), rare

metals (molybdenum, niobium, nickel, vanadium tungsten, etc.), industrial minerals

(fluorite, zircon, etc.), silicon metal, etc.

Steel products

Alumina, copper concentrates, copper, zinc, etc.

Coal (thermal coal), nuclear fuel cycle services and nuclear equipment, etc.

Ferrous Materials

Non-Ferrous Metals

Coal and Power Utilities

Metal Related Business

•Promoting trading and investment of upstream

concessions for a variety of ferrous materials and

non-ferrous metals.

•Sales of steel products to domestic/international

market through Metal One Corporation (a joint

venture owned 40% by Sojitz）

Coal and Utilities Business

•Investment in upstream coal interests and off-shore

trading

•Providing a full range of services of nuclear fuel

cycle and various services related electric power

business


Chemicals Division

14

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


Chemicals Division

15

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



16

Businesses

Foods & Agriculture Business Unit

Foodstuffs: Trade, overseas processing and

domestic trade of sugar, coffee, seafood and general

foods; fish farming, etc.

Agribusiness: Production, sales, import and export

of advanced chemical fertilizer; agricultural

business

Grains and feed materials: Trade, domestic trade,

and overseas production of wheat, soybeans, corn,

rice, oil and fat, pasture, compound feed, etc.; port

operations

Overseas Grain and Feed Business We have invested in the Interflour Vietnam Ltd., which has the largest specialized grain port in Vietnam, and have developed our feed and grain business using their facilities.

IFV’s flour mill, silos and port facilities Grain production and collection business in Brazil

Agriculture, Grain Collection, and Terminal

Business

We have invested in the CGG group, a Brazilian

agriculture and grain collection company, to expand

the scale of our grain trading.



17

Forest Products & Lifestyle Unit

Businesses

Consumer goods: Miscellaneous brand items,

including cigarettes, and shoes, etc.; overseas

consumer products, wholesale, and distribution;

retail business at airports with JALUX

Overseas Industrial & Urban Infrastructure

Development: Overseas industrial park

development and operation

Forest products: Import, offshore trading, and

domestic Japanese sales of timber, lumber, plywood,

building materials, woodchips, pulp, etc.; overseas

afforestation and woodchip production businesses

Textiles: OEM and apparel brand businesses

Overseas Industrial Park Business

Developing, selling lots in, and

managing industrial parks in rapidly

growing Asia

Long Duc Industrial Park in Vietnam

Brand and Retail Businesses Brand businesses which lie at the leading edge of diversifying lifestyles and changing consumer psychology/awareness

A plantation site in South Africa for supplying woodchip materials

Woodchip and Afforestation

Businesses

Developing woodchip

businesses in Asia, Australia,

and Africa

Casual fashion brand “Admiral”


The Sojitz Group’s CSR

18

Main Social Contribution Initiatives

・ Establishment and Management 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 and Mozambique (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 Mozambique express

joyfulness in front of new school

building of pre-school education

support project

Sojitz Group CSR Policy and CSR Priority Themes

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

business partners, and are working in other ways

to build sustainable supply chains with our

business partners.

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 Policy

We will strive to do business in harmony with society and the environment, consistently honoring the Sojitz Group Statement.

Training of

Supply Chain CSR

In Sojitz group

Photo courtesy of Plan Japan


Contributing to Addressing Social Issues

through Business

19

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.

Green Chemical Business

A shift is taking place to plant-based plastics from

conventional petroleum-based plastics. Bioplastics can help alleviate global warming by reducing fossil

fuel consumption. The Sojitz is taking various

initiatives in the green chemical business, which

encompasses plant-derived chemical products and

plastic raw materials.

Green polyethylene plant in Brazil

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 group conducts businesses that take

advantage of its functions as a general trading

company to help resolve these issues.

First-Ever Desalination Project

in Sub-Saharan Africa

Sojitz began participating in a desalination project in

the Republic of Ghana in central West Africa. In

partnership with one of Spain’s largest water

companies, Sojitz will build and operate the plant,

which will begin supplying drinking water to the

capital city of Accra from the end of 2014.

The desalination plant under construction

Businesses That Contribute to Preventing

Climate Change

Businesses That Contribute to the Advance of

Developing and Emerging Countries


The Sojitz Group creates value and

prosperity by connecting the world with

a spirit of integrity.

Sojitz presentation 2014 04-01

Business

Transcript of Sojitz presentation 2014 04-01