sojitz ir day · presence in the industry based on own network and credibility in the industry,...
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Sojitz IR Day Energy & Metal Division
Masahiro Komiyama
President, Energy & Metal Division
December 19, 2013
Sojitz Corporation
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Copyright © Sojitz Corporation 2013
2
Caution regarding Forward-looking Statements This document contains forward-looking statements based on information available to the Company at the time of disclosure and certain
assumptions that management believes to be reasonable. Sojitz makes no assurances as to the actual results and/or other outcomes, which
may differ substantially from those expressed or implied by such forward-looking statements due to various factors including changes in
economic conditions in key markets, both in and outside of Japan, and exchange rate movements. The Company will provide timely disclosure
of any material changes, events, or other relevant issues.
Contents
◆ Division Overview
◆ Growth Strategy
◆ Supplemental Data (Main Businesses)
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Division Overview
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Copyright © Sojitz Corporation 2013
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Group Companies, Overseas Bases and Staff
(As of September 30, 2013)
Domestic 13 companies,
about 450 people
Overseas 49 companies,
about 670 people Note: Number of employees is for Sojitz and its consolidated subsidiaries
Steel & Mineral Resources
Unit Energy Unit Coal & Nuclear Unit
China Operating companies 3
Staff About 20
Asia & Oceania Operating companies 27
Staff About 250
Europe, Africa,
Middle East,
Russia & NIS Operating companies 9
Staff About 370
The Americas Operating companies 10
Staff About 30
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Division Performance and Outlook
(Billions of yen)
Note: Figures are based on IFRS from the fiscal year ended March
2012, and JGAAP for prior fiscal years.
総資産 483.4 543.7 580.9 559.7
Falling market prices
IFRS JGAAP
FY2012 Gross Profit
Contribution by Unit
Division total
¥31.0 billion
100%
Energy
35%
Coal & Nuclear
35%
Steel & Mineral
Resources
30%
30
25
20
15
10
5
FY2009
Results
FY2010
Results
FY2011
Results
FY2012
Results
FY2013
Forecast
Total assets
Profit attributable to
owners of the
Company
23.5 26.5
25.1
12.7
10.0
Decrease in
production
volume
Increase in
depreciation and
amortization
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Growth Strategy
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Investment Business Trading Business
Growth Strategy:
Focus on Both Resource Interests and Trading
顧客ニーズ
販売力 仕入れ力
事業管理
競争力 資産の良化
Growth Strategy
Customers Business
opportunities
Customer
needs
Sales
force
Purchasing
power
Business
management
Competitiveness Asset
improvement
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Demand for energy and metals will continue to expand
Market Environment of Energy & Metals
Global Coal Demand Forecast Global LNG Demand Forecast (Million tons) (Million tons)
Global Crude Steel Production Forecast (Million tons)
0
500
1,000
1,500
2,000
2,500
2010年 2015年 2020年 2025年
北米・中南米
欧州+CIS
中東・アフリカ
その他アジア
中国
0
50
100
150
200
250
300
350
400
450
500
2010年 2015年 2020年 2025年
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2010年 2015年 2020年 2025年 2010 2015 2020 2025
The Americas
Europe & CIS
Middle East &
Africa
Asia excl.
China
China
2010 2015 2020 2025 2010 2015 2020 2025
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Lake Vermont Joint Venture
Jellinbah East Joint Venture
Minerva Joint Venture
Moolarben Joint Venture
PT. Bara Alam Utama
PT. Berau Coal
- Current state of upstream (investment in mining interests) and delivery (trading) -
Delivery volume
22.0 million tons
Existing delivery channels
Equity share of
production
7.6 million tons
単位:万㌧
5.0
2.6
国別持分権益数量
豪州
インドネシア
0.75
0.85
炭種別持分権益数量
原料炭
PCI炭
一般炭
販売先別取扱数量
第三国
日本
単位:万㌧
10.0
12.0
Evolution of the Coal Business
Equity Share of Production by Country Equity Share of Production by Coal Type Delivery Volume by Customer Location
(Million tons)
Australia
Indonesia
(Million tons)
Coking coal
PCI
Thermal coal
(Million tons)
Third countries
Japan 6.0
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10
0
5
10
15
20
現在 2015年 2020年頃
持分権益数量
Evolution of the Coal Business
- Initiatives for further evolution - Upstream
Coal Mine Investment and Operation
Midstream
Logistics
Downstream
Trading
Diversify sources: Develop sources in Russia,
Mongolia and North America, etc.
Diversify coal types: Acquire coking coal interests
Expand operating functions: Australia
Participate in logistics operations in Vietnam,
Indonesia, Mongolia and other countries
Expand market share of coal for Japan
Develop new sources: Mongolia, Russia,
Indonesia
Cultivate new markets: Vietnam, India and
other countries in Asia
Mongolia: Investment in coal distributor in Inner
Mongolia, China
Vietnam: Studying participation in coal import
infrastructure
Indonesia: Studying participation in transportation
infrastructure
7.6 million
tons
15 million tons
Thermal
coal
PCI
Coking
coal
Australia
Indonesia
Other
By coal type 〈 2020(e) 〉 By country 〈 2020(e) 〉
Current 2015 2020(e)
Equity share of Production
Volume (Million tons/year)
0
10
20
30
40
現在 2015年 2020年頃
物流取扱数量 Delivery Volume
(Million tons/year)
22.0 million
tons
35 million tons
Current 2015 2020(e)
Japan
Third
countries
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Expansion of the Gas Business
- Current state of the Sojitz Group’s LNG interests and delivery -
Initiatives through LNG Japan Corporation Since FY2012 – Initiatives as Sojitz
LNG interests (indirect equity interests) Indonesia: Tangguh LNG 7.6 million tons/year (x 3.68%)
Qatar: RasGas 1 & 2 6.6 million tons/year (x 1.5%)
LNG delivery (Sojitz’s 50% equity share of the volume
handled by LNG Japan) Indonesia: Bontang LNG 2.85 million tons/year for Japan
Established new organizational unit
Established the LNG Department in 2012 to conduct own LNG
businesses, through the partial transfer of operations from
LNG Japan
Began own LNG business
•Developing LNG projects in West Africa and North America
•Started LNG spot trading (have made multiple trades)
Established in 2001
Sojitz 50% / Sumitomo Corporation 50%
Capital: ¥8.0 billion
Equity Share of Production
(Thousand tons/year)
Indonesia
279
Qatar
99
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0
1
2
3
4
現状 2020年頃
Expansion of the Gas Business
- Future activities of the Sojitz Group -
Delivery Volume (Million tons/year)
Existing delivery channels
New initiatives
0
100
200
300
400
500
600
700
800
900
現状 2020年頃
1 Long-term stable
supply
3 Supply flexibility
2 Low cost
• Energy security
• Ability to meet peak demand and restart of nuclear power plants (Adjustment of supply and demand)
• Lower LNG procurement costs
• Diversified supply sources
• Tangguh expansion project in Indonesia (Conventional large-scale project led by an
oil major)
• West Africa LNG project+LNG trading (Purchase options for Europe and Japan)
• North America LNG project+LNG trading
(Linked to North American gas prices instead of
crude oil prices)
• Creation of a gas value chain
従来
原発 事故後
Market Needs/Significance Sojitz Activities
Previously
After
Fukushima
Equity share of Production (Thousand tons/year)
Current 2020(e) Current 2020(e)
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Expand Sales of Carbon Materials through Sojitz Ject
Selling diverse carbon products through Sojitz Ject
Expanding sales of electrode materials for electrical furnaces (needle
coke) in Europe, the U.S., China and India. Invested in a joint
venture in China with Nippon Steel & Sumikin Chemical Group in
2013 to further expand local production and sales
Investment in needle coke manufacturing venture (Sojitz stake 7%; production scheduled to begin in late 2014)
Strengthening Mineral Resource Trading
Carbon Materials
Expand Sales to Asia by Securing Own Sources
One of the leading importer of iron ore to Japan, primarily from Brazil
Promoting sales from the iron ore mine Sojitz is developing in
Australia
Plan to begin sales of high-grade iron ore from Brazil in 2015,
primarily to China
Developing own network with supply sources for the sales to Asia
Iron Ore
Existing distribution channels
Target market
Delivery volume
by Sojitz (Million tons)
0
500
1,000
1,500
現在 2020年頃
0
400
800
1,200
現在 2020年頃
0
50
100
150
現在 2020年頃
0
10
20
現在 2020年頃
Iron Ore Demand in China (Million tons) Global Demand for Needle Coke
(Thousand tons)
Delivery Volume
by Sojitz (Thousand tons)
Current 2020(e) Current 2020(e) Current 2020(e) Current 2020(e)
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0
20
40
60
現在 2020年頃
Expand sales through partnership with Companhia
Brasileira de Metalurgia e Mineração (CBMM)
Acquired a stake in CBMM, the world’s top niobium producer, with
other Japanese users and built a system for stable supply to
Japan With brisk demand for steel materials in Asia, niobium demand is
expected to continue to grow. Cooperate with CBMM to expand
sales to emerging countries in Asia, as well as to Japan
Niobium
CBMM (from 2011; Sojitz stake 2.5%)
Expand sales in Asia with strong presence in the industry
Access to high-quality molybdenum through interest in the Endako
mine in Canada
Leading importer among Japanese trading companies, with a strong
presence in the industry Based on own network and credibility in the industry, expansion of
sales in South Korea, China, India and Southeast Asia, where demand
is growing
Molybdenum
Endako mine (from 1997; Sojitz stake 25%)
Existing distribution channels
Target market
0
200
400
600
800
1,000
現在 2020年頃
Strengthening Mineral Resource Trading
0
5
10
15
現在 2020年頃
0
10
20
現在 2020年頃
Niobium Demand in
Asia (Thousand tons) Delivery
Volume by Sojitz (Million pounds)
Global Demand
for Molybdenum (Million pounds)
Delivery Volume by Sojitz (Thousand tons)
Current 2020(e)
Currently 2020(e) Current 2020(e)
Current 2020(e)
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Future Image of Energy & Metal Division
Resources Customers
(Market)
Oil & gas
upstream
development
Coal mine
development
Gas separation
LNG liquefaction
LNG vessels
Long-term
contracts
LNG/LPG trading
Coal import
terminals
Mineral
resource mine
development
Transportation
infrastructure
Concentrate processing
Coal chemicals
Long-term contracts
LNG receiving terminals
Gas chemicals
Long-term contracts
Yard business
Mineral resource
trading
Thermal power
generation
New gas businesses (hydrogen, helium)
Coal trading
・Needle coke
・Carbon materials
Business opportunities
Optimizing the portfolio and expanding the stable earnings foundation by seizing business opportunities to supply
resources in line with customer needs, in response to growing demand for energy and metals
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Supplemental Data
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Businesses by Unit
Steel & Mineral
Resources Unit
Coal & Nuclear Unit
Australia/Lake Vermont Coal Mine Australia/Minerva Coal Mine Inner Mongolia/Distribution business of Inner
Mongolia Zhongmeng Coal Co., Ltd.
Brazil/CBMM’s niobium mine Canada/Endako molybdenum mine
Energy Unit
Indonesia/Tangguh LNG terminal LNG vessels Vietnam/CNG business
Carbon materials
Needle coke Specialty carbon
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Map of Major Resource Businesses
Southdown Iron Ore Mine
Frade Oil Field
Gulf of Mexico Oil & Gas Fields
Tangguh LNG Block 1SE, Offshore
Alamein & Yidma Oil Field
Ras Laffan LNG
Carthage Oil & Gas Field
Phoenix Oil & Gas Field
Etame Oil Field
Gryphon Oil Field/Gryphon South Oil Field
Tors Gas Field
Grove Gas Field Seven Seas Gas Field
Worsley Alumina Refinery
Panasqueira Tungsten Mine
Endako Molybdenum Mine
Coral Bay Nickel
Crometals
PT. Berau Coal
Jellinbah East
Yamala
Moolarben
Minerva
Athena
Gibraltar Copper Mine
CBMM Araxá Mine
Sunland Limestone Mine
Wyong
Le Nickel
Vametco Vanadium
Lake Vermont
PT. Bara Alam Utama
Zhongmeng Coal
Non-Ferrous Metals
Others
Ferroalloys
Coal
Oil & Gas
LNG
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