Komori
Earnings presentation2768Sojitz CorporationTrading & Wholesale

Financial Results Materials for the First Quarter of the Fiscal Year Ending March 2027

Profit attributable to owners of the parent for the first quarter of the fiscal year ending March 2027 was ¥30.2 billion, up ¥9.1 billion from ¥21.1 billion in the same period of the previous year. Progress against the full-year forecast of ¥130.0 billion was 23%, with Chemicals and Energy & Social Infrastructure driving the increase in profit.

Worth reading
78Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
91
¥ hundred million
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥8,342 hundred million
Ordinary income¥411 hundred million
Net income¥302 hundred million
Selling, general and administrative expenses¥830 hundred million
Results for the three months of the current quarter
Revenue¥834.2 billion
Gross profit¥111.3 billion
Selling, general and administrative expenses¥83.0 billion
Pretax profit¥41.1 billion
Profit attributable to owners of the parent¥30.2 billion
Full-year earnings forecast
Gross profit¥440 billion
Selling, general and administrative expenses(¥320.0 billion)
Other income and expenses¥5 billion
Financial income and expenses(¥3.0 billion)
Share of profit or loss of investments accounted for using the equity method¥48.0 billion
Pretax profit¥170 billion
Profit attributable to owners of the parent¥130 billion
Underlying earnings power¥165.0 billion
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Gross profit25%
Pretax profit24%
Profit attributable to owners of the parent23%
Underlying operating cash flow27%
By segmentAutomotive 25%, Aviation & Transportation Infrastructure 18%, Energy & Integrated Infrastructure 25%, Metals, Resources & Recycling 10%, Chemicals 50%, Living & Agri Business 21%, Retail & Consumer Services 29%, Other: "-" as reported
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress in each business is ahead of plan, and steady performance is expected to continue (Chemicals segment)
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in revenue+¥235.3 billion
  • Increase in gross profit+¥29.1 billion
  • Increase in gross profit in Energy & Integrated Infrastructure+¥8.2 billion
  • Increase in gross profit in Chemicals+¥13.8 billion
  • Increase in gross profit in Retail & Consumer Services+¥6.1 billion
  • Increase in selling, general and administrative expenses(¥12.8 billion)
  • Increase in equity-method investment gains+¥3.3 billion
  • Increase in profit before tax+¥16.2 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Coking coalUS$210/t (FY2026 assumption)
Thermal coalUS$120/t (FY2026 assumption)
Brent crude oilUS$70/bbl (FY2026 assumption)
Foreign exchangeJPY150/US$ (FY2026 assumption)
TIBOR1.45% (FY2026 assumption)
New initiatives
  • New investments in Japan Investment Adviser (JIA) and others
  • Final investment decision on the Australian alumina production business
  • New consolidation of the Australian public transportation business
  • Promotion of airport, power generation and hospital PPP projects in Uzbekistan
  • Strengthening electrical contracting and control systems capabilities through investment in Bolton in the United States
  • Structural reforms, including business share-outs and withdrawals
Key KPIsA metric the company considers important as a management benchmark.
  • ROE12 %
  • ROA3.5 %
  • Underlying operating cash flow¥400 hundred million
    Year on year against the same period last year+¥7.9 billion
  • Underlying cash flow¥-278 hundred million
    Year on year against the same period last year+¥21.6 billion
  • Equity ratio30.7 %
    Year on year against the same period last year+0.8 percentage points
  • Net debt-to-equity ratio1.02 times
    Year on year against the same period last year+0.07x
  • CROIC (Chemicals)
  • CROIC (Aviation & Transportation Infrastructure)
Segment results
  • Automotive
    Gross profit¥17.2 billion
    Year on year against the same period last year+¥2.0 billion
    Net income−¥300 million
    Year-on-year change in net income+¥100 million
  • Aviation and Transportation Infrastructure
    Gross profit¥5.9 billion
    Year on year against the same period last year(¥1.0 billion)
    Net income¥3.4 billion
    Year-on-year change in net income+¥0.3 billion
  • Energy and Comprehensive Infrastructure
    Gross profit¥20.2 billion
    Year on year against the same period last year+¥8.2 billion
    Net income¥6.9 billion
    Year-on-year change in net income+¥2.5 billion
  • Metals, Resources and Recycling
    Gross profit¥3.6 billion
    Year on year against the same period last year+¥2.0 billion
    Net income¥2.1 billion
    Year-on-year change in net income(¥1.0 billion)
  • Chemicals
    Gross profit¥30.7 billion
    Year on year against the same period last year+¥13.8 billion
    Net income¥11.1 billion
    Year-on-year change in net income+¥5.3 billion
  • Lifestyle Industries and Agri-Business
    Gross profit¥11.1 billion
    Year on year against the same period last year(¥2.0 billion)
    Net income¥2.7 billion
    Year-on-year change in net income-¥800 million
  • Retail and Consumer Services
    Gross profit¥19.7 billion
    Year on year against the same period last year+¥6.1 billion
    Net income¥4.3 billion
    Year-on-year change in net income+¥3.4 billion
  • Other
    Gross profit¥2.9 billion
    Year on year against the same period last year¥0
    Net income¥0
    Year-on-year change in net income-¥700 million
Medium-term management plan targets
Midterm 2026Underlying operating cash flow ¥450.0 billion, asset replacements ¥180.0 billion, new investments (¥280.0 billion), capex and other investments (¥61.0 billion), shareholder returns (¥130.0 billion) (fiscal years ending March 2025 to March 2027)
Next StageROE15%
Financial targets
ROE12% (forecast for the fiscal year ending March 2027)
ROA3.5% (forecast for the fiscal year ending March 2027)
Equity ratio30.8% (forecast at the end of the fiscal year ending March 2027)
Net debt-to-equity ratioApproximately 1x (forecast at the end of the fiscal year ending March 2027)
Shareholders' equity DOE4.5%
Market Size / Share
Uzbekistan government's PPP investment attraction targetMore than US$30 billion by 2030
Tashkent New Airport project scale¥370 billion
Annual passenger capacity20 million passengers annually
Capital expenditures
¥250 100 million actual for the fiscal year ending June 2026 under Midterm 2026
Annual Dividend
Annual¥180/share
Interim¥90
End of period¥90
Acquisition of treasury shares
¥10 billion
Number of Shares2.8 million shares
Period2 May 2025–31 July 2025
Cancellation15 million shares cancelled on 29 August 2025
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥8,342 hundred million
Ordinary income¥411 hundred million
Net income¥302 hundred million
Selling, general and administrative expenses¥830 hundred million
Results for the three months of the current quarterRevenue ¥834.2 billion / Gross profit ¥111.3 billion / Selling, general and administrative expenses ¥83.0 billion / Pretax profit ¥41.1 billion / Profit attributable to owners of the parent ¥30.2 billion
Full-year earnings forecastNet Sales Not disclosed / Gross profit ¥440 billion / Selling, general and administrative expenses (¥320.0 billion) / Other income and expenses ¥5 billion / Financial income and expenses (¥3.0 billion) / Share of profit or loss of investments accounted for using the equity method ¥48.0 billion / Pretax profit ¥170 billion / Profit attributable to owners of the parent ¥130 billion / Underlying earnings power ¥165.0 billion
Progress against full-year forecastGross profit 25% / Pretax profit 24% / Profit attributable to owners of the parent 23% / Underlying operating cash flow 27% / By segment Automotive 25%, Aviation & Transportation Infrastructure 18%, Energy & Integrated Infrastructure 25%, Metals, Resources & Recycling 10%, Chemicals 50%, Living & Agri Business 21%, Retail & Consumer Services 29%, Other: "-" as reported
Self-assessment against the planProgress in each business is ahead of plan, and steady performance is expected to continue (Chemicals segment)
Segment resultsSegment Automotive / Gross profit ¥17.2 billion / Year on year against the same period last year +¥2.0 billion / Net income −¥300 million / Year-on-year change in net income +¥100 million, Segment Aviation and Transportation Infrastructure / Gross profit ¥5.9 billion / Year on year against the same period last year (¥1.0 billion) / Net income ¥3.4 billion / Year-on-year change in net income +¥0.3 billion, Segment Energy and Comprehensive Infrastructure / Gross profit ¥20.2 billion / Year on year against the same period last year +¥8.2 billion / Net income ¥6.9 billion / Year-on-year change in net income +¥2.5 billion, Segment Metals, Resources and Recycling / Gross profit ¥3.6 billion / Year on year against the same period last year +¥2.0 billion / Net income ¥2.1 billion / Year-on-year change in net income (¥1.0 billion), Segment Chemicals / Gross profit ¥30.7 billion / Year on year against the same period last year +¥13.8 billion / Net income ¥11.1 billion / Year-on-year change in net income +¥5.3 billion, Segment Lifestyle Industries and Agri-Business / Gross profit ¥11.1 billion / Year on year against the same period last year (¥2.0 billion) / Net income ¥2.7 billion / Year-on-year change in net income -¥800 million, Segment Retail and Consumer Services / Gross profit ¥19.7 billion / Year on year against the same period last year +¥6.1 billion / Net income ¥4.3 billion / Year-on-year change in net income +¥3.4 billion, Segment Other / Gross profit ¥2.9 billion / Year on year against the same period last year ¥0 / Net income ¥0 / Year-on-year change in net income -¥700 million
Breakdown of Factors Affecting the ChangeItem Increase in revenue / Amount +¥235.3 billion, Item Increase in gross profit / Amount +¥29.1 billion, Item Increase in gross profit in Energy & Integrated Infrastructure / Amount +¥8.2 billion, Item Increase in gross profit in Chemicals / Amount +¥13.8 billion, Item Increase in gross profit in Retail & Consumer Services / Amount +¥6.1 billion, Item Increase in selling, general and administrative expenses / Amount (¥12.8 billion), Item Increase in equity-method investment gains / Amount +¥3.3 billion, Item Increase in profit before tax / Amount +¥16.2 billion
Key KPIsIndicator name ROE / Value 12 % / Year on year against the same period last year Not disclosed, Indicator name ROA / Value 3.5 % / Year on year against the same period last year Not disclosed, Indicator name Underlying operating cash flow / Value ¥400 hundred million / Year on year against the same period last year +¥7.9 billion, Indicator name Underlying cash flow / Value ¥-278 hundred million / Year on year against the same period last year +¥21.6 billion, Indicator name Equity ratio / Value 30.7 % / Year on year against the same period last year +0.8 percentage points, Indicator name Net debt-to-equity ratio / Value 1.02 times / Year on year against the same period last year +0.07x, Indicator name CROIC (Chemicals) / Value Not disclosed / Year on year against the same period last year Not disclosed, Indicator name CROIC (Aviation & Transportation Infrastructure) / Value Not disclosed / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookCoking coal US$210/t (FY2026 assumption) / Thermal coal US$120/t (FY2026 assumption) / Brent crude oil US$70/bbl (FY2026 assumption) / Foreign exchange JPY150/US$ (FY2026 assumption) / TIBOR 1.45% (FY2026 assumption)
Medium-term management plan targetsMidterm 2026 Underlying operating cash flow ¥450.0 billion, asset replacements ¥180.0 billion, new investments (¥280.0 billion), capex and other investments (¥61.0 billion), shareholder returns (¥130.0 billion) (fiscal years ending March 2025 to March 2027) / Next Stage ROE15%
Financial targetsROE 12% (forecast for the fiscal year ending March 2027) / ROA 3.5% (forecast for the fiscal year ending March 2027) / Equity ratio 30.8% (forecast at the end of the fiscal year ending March 2027) / Net debt-to-equity ratio Approximately 1x (forecast at the end of the fiscal year ending March 2027) / Shareholders' equity DOE 4.5%
Annual DividendAnnual ¥180/share / Interim ¥90 / End of period ¥90
Acquisition of treasury sharesAmount ¥10 billion / Number of Shares 2.8 million shares / Period 2 May 2025–31 July 2025 / Cancellation 15 million shares cancelled on 29 August 2025
Capital expenditures¥250 100 million (actual for the fiscal year ending June 2026 under Midterm 2026)
Market Size / ShareUzbekistan government's PPP investment attraction target More than US$30 billion by 2030 / Tashkent New Airport project scale ¥370 billion / Annual passenger capacity 20 million passengers annually
New initiativesNew investments in Japan Investment Adviser (JIA) and others, Final investment decision on the Australian alumina production business, New consolidation of the Australian public transportation business, Promotion of airport, power generation and hospital PPP projects in Uzbekistan, Strengthening electrical contracting and control systems capabilities through investment in Bolton in the United States, Structural reforms, including business share-outs and withdrawals
Items this document does not state (10)
Operating profitGross Profit MarginOperating profit marginUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Profit increased due to the new consolidation of the Australian public transportation business, an increase in the area handed over in the overseas industrial park business, increased transactions in the US energy-related business, higher methanol prices, the profit contribution from Japan Air Gases Energy, steady performance in domestic and overseas trading, and strong performance in the Vietnamese foodservice wholesale business. Conversely, Metals, Resources & Recycling was affected by lower production efficiency in the Australian metallurgical coal business, while Living & Agri Business was affected by delays in overseas crop planting due to low rainfall and a decline in transaction volumes in the overseas fertilizer business.

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Financial Results Materials for the First Quarter of the Fiscal Year Ending March 2027 | Sojitz Corporation (2768) timely disclosure | Komori