presentation for business results of the first and …...• 1q-2q of fy2012 financial results p.3...
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Presentation for Business Results of the Presentation for Business Results of the First and Second Quarter Ended September 2012First and Second Quarter Ended September 2012
November 2012November 2012
MITSUI MATSUSHIMA CO. LTD.MITSUI MATSUSHIMA CO. LTD.
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ContentsContents
•• 1Q1Q--2Q of FY2012 Financial Results 2Q of FY2012 Financial Results P.3P.3
•• Growth StrategyGrowth Strategy P.9P.9
•• Reference MaterialReference Material P.13P.13
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1Q1Q--2Q of FY 2012 Financial Results2Q of FY 2012 Financial Results
44
Consolidated Income StatementConsolidated Income Statement
Net sales: In the Fuel Business (coal sales), sales declined due to falling coal prices. Operating profit: In the Fuel Business (coal production), operating profit declined due to factors including increased
operation costs for Liddell Coal Mine. Non-operating profit: Posted interest received of ¥155 million (up ¥90 million from the previous corresponding period) and
exchange rate gains of ¥98 million (up ¥96 million). Extraordinary profit: Posted subsidies received of ¥134 million. Extraordinary loss: Posted fixed asset advanced depreciation deductions of ¥124 million, investment securities valuation
losses of ¥174 million (up ¥102 million from the previous same period) and business operation suspension losses of ¥122 million.
(Million yen) 1Q-2Q FY2011 1Q-2Q FY2012 Yr/Yrchange
Net sales 48,017 46,009 (2,008)
Operating profit 2,874 2,469 (405)
Non-operating profit 118 328 209
Non-operating expenses 119 90 (29)
Ordinary profit 2,874 2,707 (167)
Extraordinary profit 2,375 144 (2,230)
Extraordinary loss 214 445 231
Quarterly net profit before income taxes 5,035 2,406 (2,628)
Income taxes-current 1,499 845 (654)
Corporate taxes-deferred 152 73 (78)
Quarterly net profit 3,383 1,487 (1,895)
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Consolidated Segment InformationConsolidated Segment Information
Business(Million yen)
1Q-2Q FY2011
1Q-2Q FY2012
Yr/Yrchange
Fuel (Coal sales) 40,931 37,800 (3,130)
Fuel (Coal production)
9,118 8,577 (541)
Contract Service - 1,746 1,746
Building Material 1,693 1,452 (240)
Real Estate 256 296 40
Recycling and Ferroalloy
334 186 (148)
Others 1,401 1,146 (254)
Adjustment (5,716) (5,196) 520
Total 48,017 46,009 (2,008)
Business(Million yen)
1Q-2Q FY2011
1Q-2Q FY2012
Yr/Yrchange
Fuel (Coal sales) 64 18 (45)
Fuel (Coal production)
3,162 2,585 (576)
Contract Service - 125 125
Building Material (91) (40) 51
Real Estate 20 8 (11)
Recycling and Ferroalloy
(259) (173) 85
Others (33) (55) (21)
Adjustment 12 0 (12)
Total 2,874 2,469 (405)
[Net Sales] [Operating Profit]
Fuel Business (coal sales and production): For details 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: Decline in net sales of ready-mixed concrete. Recycling and Ferroalloy Business: Implementation of downsizing, Ferroalloy Business remained suspended.
* Consolidated results include Nagata Engineering Co., Ltd. (Building Material Business segment) from Q1 FY2012..* MM Energy Co., Ltd. and SPC Tsuyazaki Solar Power Plant No. 1 consolidated as subsidiaries (Others) from FY 2012 2Q.* “Others” includes the Coal Mining Technique Transfer Business, Supermarket Business, Maritime Transport Business and Solar Power Generation Business.* Net sales represent sales before the elimination of inter-segment transactions.
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Breakdown of Fuel Business Breakdown of Fuel Business (Coal Sales and Production)(Coal Sales and Production)
(Million yen)1Q-2Q FY2011
1Q-2Q FY2012
Yr/Yrchange
Coal salesSales volumes
(Million tonnes)
40,9313.27
37,8003.41
(3,130)0.14
Coal productionSales volumes
(Million tonnes)
9,1180.81
8,5770.78
(541)(0.03)
Adjustment (5,673) (5,149) 524
Fuel BusinessTotal
44,376 41,228 (3,148)
(Million yen)1Q-2Q FY2011
1Q-2Q FY2012
Yr/Yrchange
Coal sales 64 18 (45)
Coal production 3,162 2,585 (576)
Adjustment - - -
Fuel BusinessTotal
3,226 2,604 (622)
[Net Sales] [Operating Profit]
[Major index] 1Q-2Q FY2011 result
1Q-2Q FY2012 result
Coal sales(Apr-Sep)
Average price of coal import and sales ¥12,502 ¥11,069
Exchange rate ¥/US$ (Average rate) ¥79.56 ¥79.51
Coal production(Jan-Jun)
Average coal price: Thermal coal US$ 116.33 US$ 125.19
Average coal price: Semi-soft coking coal US$ 183.10 US$ 172.58
Exchange rate US$/A$ (Average rate) US$ 1.0326 US$ 1.0341
Exchange rate ¥/A$ (Settlement: Average rate during period) ¥84.66 ¥82.32
Coal sales: Though sales volume increased, net sales declined due to falling coal prices.Operating profit declined due to the fall in average sales commissions per tonne.
Coal production: Net sales declined due to falling sales volume and appreciation of the yen at the settlement exchange rate (¥/A$).Operating profit declined due to factors such as increased operation costs for maintenance of heavy machinery and coal preparation plant in Liddell Coal Mine.
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Consolidated Balance SheetConsolidated Balance Sheet
Mar. 31, 2012 Sep. 30, 2012 Change Major changes
Amount(Million yen)
Share(%)
Amount(Million yen)
Share(%)
(Million yen)
Current assets 17,817 38.6 18,574 36.9 757 Accounts receivable +664Tangible fixed assets +2,302Intangible fixed assets +1,281Fixed assets,
Deferred assets 28,361 61.4 31,786 63.1 3,425
Total assets 46,178 100.0 50,361 100.0 4,183
Current liabilities 8,384 18.1 9,951 19.8 1,567 Short-term debt +1,875Long-term debt +766, Bonds +244
Fixed liabilities 10,940 23.7 12,184 24.2 1,243
Total liabilities 19,325 41.8 22,136 44.0 2,810
Total net assets 26,853 58.2 28,225 56.0 1,372 Net profit +1,487, Dividend payments -554, Currency exchange adjustments +442
Total liabilities and net assets 46,178 100.0 50,361 100.0 4,183
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Consolidated Cash FlowsConsolidated Cash Flows
(Million yen)1Q-2Q
FY 20111Q-2Q
FY 2012Change Main factors
(1Q-2Q FY 2012)
Quarterly net profit before income taxes 5,035 2,406 (2,628)• Decline due to increase in
accounts receivable
• Decline due to payment of income tax, etc.
Working capital 969 (147) (1,117)
Other (3,427) (1,072) 2,354
Cash flows from operating activities 2,577 1,186 (1,391)
Changes in fixed assets (660) (306) 354 • Decline due to purchases of machinery and equipment, etc. by Mitsui Matsushima Australia
• Decline due to acquisition of stock in M&M Service and Nagata Engineering
• Increase due to returns on fixed deposits (over 3 months in term)
Changes in investment securities 1,019 3 (1,015)
Acquisition of consolidated subsidiaries - (1,043) (1,043)
Other 13 220 207
Cash flows from investing activities 371 (1,125) (1,497)
Changes in loans and bonds (1,164) 237 1,401 • Increase due to short-term debt procurement
Dividend payment (547) (545) 2
Other (9) (17) (7)
Cash flows from financial activities (1,721) (326) 1,395
Effect of exchange rate change on cash and cash equivalents 294 193 (101)
Change in cash and cash equivalent 1,522 (72) (1,595)
Cash and cash equivalents at beginning of the period 11,524 8,557 (2,967)
Cash and cash equivalents at end of the period 13,046 8,484 (4,562)
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Growth StrategyGrowth Strategy
1010
Increase Profitability of Fuel Business (Coal)Increase Profitability of Fuel Business (Coal)
Expansion of Coal Production Business (Acquisition of Coal Mine Interests)
Doyles Creek Mining Pty LtdGradual acquisition of 10% interest from NuCoal Resources Ltd
Location:• Hunter Valley, New South Wales, AustraliaDoyles Creek Mining Overview:• Underground coal mining • Resources: 512 million tonnes• Minable reserves: 260 million tonnes• Estimated initial capital investment: A$739
million • Coal production scheduled startup: 2015• Maximum production: 5 million tonnes
annually(Mitsui Matsushima portion: Maximum 500,000 t/a in 2018)
• Production of thermal coal and semi-soft coking coal
Acquired interest in PT GDMAcquisition of 30% share interest of PT GDM
Location: • Samarinda, East Kalimantan State,
IndonesiaGDM Overview:• Open-cut and underground coal mining • Underground mining reserves: Approx. 20
million tonnes (equivalent to production of approx. 20 years)
• Estimated initial capital investment: US$73 million
• Coal production scheduled startup: 2014• Production volume: 1 million tonnes
annually (Mitsui Matsushima portion: Maximum 300,000 t/a in 2017)
• Production of thermal coal
GDM: Coal mine development
+Liddell Coal Mine
(Australia)1.5 million tonnes
annually
Acquired interests800,000 tonnes annually
Mitsui Matsushima’s coal interests
Maximum of 2.3 million tonnes annually
Doyles Creek Project
Liddell Coal Mine
Hunter Valley(Aerial photograph)
1111
Strengthen Coal Exploration and Coal Mine Development Capacity
Joint Venture CompanySquare Exploration (Mitsui Matsushima International 15% ownership)
Nagata Engineering(wholly owned by Mitsui Matsushima) Possesses exclusive coal separating technology, developing unique engineering business in sorting and separation
Mitsui MatsushimaThree strengths of Coal Business
SRH (Australia) Coal Resources Exploration Know-How
Enhanced comprehensive development of coal mines through fusion of Mitsui Matsushima’s coal mine development and operation skills
Joint Exploration Business with MMI Coal TechEfficient and economical mining of promising projects from initial stage (exploration)
Advantage Coal Mining Skills Development Projecting and Proposing
Marketing Power to Quality Customers
Increase Profitability of Fuel Business (Coal)Increase Profitability of Fuel Business (Coal)
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Enhance Revenue Base Enhance Revenue Base by New Businessesby New Businesses
M&M Service Co., Ltd.
Business Activities• Management of lodging facilities, consigned operation
of resort facilities, training institutes and other facilities owned by private companies, local governments, etc.
Net Sales in FY2012• ¥6.5 billion Upcoming Development • Promotion of management consignment business,
including Kyushu region, striving to stabilize and diversify Group earnings.
MM Energy Co., Ltd.
Resort-Kumano Club
Mega-Solar Tsuyazaki (concept at completion)Business Activities• Power generation business using renewable
resourcesMega-Solar Tsuyazaki Overview• Location Aza Nishitatekawa, Tsuyazaki,
Fukutsu City, Fukuoka Prefecture
• Generation capacity Approx. 2MW• Power output Approx. 2 million KWh per
annum (equivalent to annual power consumption of 600-700 general households)
• Total investment Approx. ¥600 million • Construction period Start September 2012
Complete March 2013
1313
Reference MaterialReference Material
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Account Settlement TermAccount Settlement TermDue to lag in the settlement term of overseas subsidiaries, the second quarter for the March 2013 fiscal year is consolidated with overseas performance for January to June.
2Q settlement for March 2013 year
March 2013 year settlement
Jan. Mar. Apr. Jun. Jul. Sep. Oct. Dec.Australian subsidiary settlement period (Coal production)
1Q 2Q 3Q 4Q
1Q
Apr. Jun. Oct. Dec. Jan. Mar.Mitsui Matsushima Co., Ltd. settlement period(Coal sales)
2Q 3Q 4Q
Sep.Jul.
1515
Liddell Coal Mine (Australia)Liddell Coal Mine (Australia) Operation: JV between Mitsui Matsushima Australia Pty Ltd.(32.5%) and
Xstrata PLC (67.5%) JORC Resource: 670 million tonnes (Measured: 94 Mt; Indicated: 204 Mt; Inferred: 370 Mt)
(Open-cut: 423 Mt [reserves: 69 Mt]; Underground 245 Mt) Productivity: 13,180 tonnes (cleaned coal)/person/year (2011 actual)
(Entire NSW, Australia productivity: 10,320 tonnes/person/year (open cut; 2009-10))
Production Capacity: 7.50 million tonnes/year (Maximum capacity for the coal preparation)
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
AustraliaAustralia
CanberraSydney
Queensland
Northern
Territory
South
Australia
Western
Australia
Victoria
New SouthNew South
WalesWalesNewcastle
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
2009年9月
2010年3月
2010年9月
2011年3月
2011年9月
2012年3月
2012年9月
2009/9
2010/3
2010/9
2011/3
2011/9
2012/3
2012/9
1616
Coal Market ConditionsCoal Market Conditions
(US$/Mt)■ global COAL INDEX - Index for standard quality thermal coal shipping from port Newcastle, Australia
*global COAL: Coal-related Electronic Commodity Exchange
Thermal coal 115.00
Semi-soft coking coal
(US$/Mt)
147.00147.00
Jul -SepApr - Jun
FY2012 Coal price
(Survey by Mitsui Matsushima)
Oct - Dec
117.00
1717
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