Mitsui & Co. (MITSF) 4 Feb 222022 Q3 Earnings call transcript

Good afternoon, I’m Takakazu Uchida, CFO. Thank you for joining us today. I will begin by giving a summary of the Third Quarter Operating Results and Yearly Forecasts. I will then hand over to our Global Controller Tetsuya Shigeta for details of our operating results. In the nine-month period ended December 31, 2021, the global economy continued to rebound overall.

economic Omicron due due variant prolonged constraints. of spread the to pace supply the of as the recovery to slowed rapid the Although well as in Mitsui global robust portfolio. achieve Under on business continued business quarter based environment, strong this performance the third our to to turn Please X. Page the will for operating provide of summary quarter. I a results third to both Operating Flow, COCF period ¥XXX.X record billion, ¥XXX.X to for Cash for the by year-on-year, Core and by increased ¥XXX.X historical levels. billion ¥XXX.X billion reaching the period billion profit increased firmly the financial taking forecasts, previous we in portfolio results. our the conditions, By progress upside of quarter’s the base, quality and announced market commodity at earnings achieved improving of to business high the rate of time our comparison second strengthening of above, forecasts. upwardly on we yearly our revised have Based were COCF billion to billion revised and by billion by ¥XXX and trillion to forecasts upwardly profit ¥X.XX ¥XXX respectively. ¥XXX the forecast per our per The share, per share XXXX. year-end from into dividend by ¥XX dividend to ¥XX is for March annual previous of increased resulting share ¥XXX formulate intend Mar year last annual the outlook dividend Medium we plan per assuming our the Further, the ¥XXX share. at Management Plan for MTMP, XXXX, Term of of business to

the to the Page steer impact X. spread turn to while continue attention U.S. management monetary to the of will We Omicron variant full global the business Please economy. paying the especially the environment, company’s of and tightening on

such the the XX% quarter XX% to high In steadily good seemed And high against portfolio performance highly Mineral and of continued ore in Resources, achieved as and transactions Please the and to business, advance, bottomed prices functions, forecasts capturing performance respectively have X. coking turn in Metal from valuation trading profit that our cost to historical commodity well-balanced iron base profitability achieve Steel performance. through forecasts. we and healthcare, Energy, coal contributed to of in trading strengthened while increased expect to each also competitiveness for price, in is out. and We business LNG In to exceed in Products in & and FVTPL full-year addition by segments. hedge decline demonstrate earnings and also related Furthermore, derivative Iron expected first & previous all Chemicals to competitive prices to previous continued strong Page progress strong COCF automotive was to recognized gain profit. loss we but

revised trillion. mentioned from by coking billion an the segment gas prices businesses billion Resources to in dividends China the higher by in and received trading iron ¥XX at revised upwardly Metal start Energy and increase to price, our of & performance. COCF segment in increases oil we Mineral ferroalloys to ore LNG I As due due ¥XX and forecast and We my good coal ¥X.XX the for presentation, have upwardly yearly the and

trading Additionally, from as Infrastructure a due operation on good revisions primarily and result and received segments dividends affiliates upward to & Machinery and increase of in in an performance. centered all Chemicals

We ¥XXX forecast company. billion ¥XXX the by have against upwardly across yearly revised billion our

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recycling. segments factors including resulting all in to China, The as and expansion other ¥XXX revision of steel businesses continued commodity Please in yen of both ¥XXX revision asset reflects and business, as chemicals, automotive profit base is the revision turn FOREX of trading, fluctuations. from upward total in while Page improvement ¥XX of ¥XXX is competitiveness LNG, to forecast of totaling as products, billion earnings ferroalloys billion profit ¥XX rate reflects such The commodity market and in upward companies group X. FOREX billion and yearly to billion, forecast yen valuation the revision due and our The revised ¥XXX upwardly and mainly well billion. billion progress fluctuations. of have We upward previous upward high

strengthening earnings I for explain have an competitiveness existing the plans organized the year and will into at set which functions, beginning been of of and segment, Next, transformation contribution the with priority and were the which plan trading focus strategic each current period. together out implementation the action of quarter to will action businesses among progress by which portfolio in business made for measures. have begin the project and I explaining

each Firstly, of business, as trading United chemicals, management States in the Penske disruptions stable we which and products current to costs, Group supply including each various amid on before in food, the implementation Healthcare continued Further, of we period. have competitiveness the of and spread have patiently we And reduce base, company. such by of to to of the group improvement further reducing in enhanced of demonstration strengthening the COVID-XX. Also, which performance had started even IHH, strategy accelerating companies. performance chain costs results and lowering the the functions point steel led breakeven automotive in boosted contributed business in the growth the the centered of supply businesses,

successor and in in Metal made with I-Fashion, taking Exploration pandemic, to of operations as appropriate X implementation Trading segments. field merger during in on even Arctic measures generation Bussan of copper We In Mitsui project, Nippon the steadily sale LNG gas-fired in and iron expansion of progress such of large on of operations business Chile, the Australia, the Resources while progress implemented acquisition in Mineral ore the and contribution of earnings, of we business deposit Corporation commencement in power a development Mitsui the projects each Thailand. portfolio operations Steel the project Infrastructure also such the transformation of Oil and Machinery project & textiles as some in shares businesses of additional &

Nutrition, In made Hendrix nutrition with areas Netherlands multi-species in electrification company. by Solutions, company collaboration Australia the a the to in will efforts Market project, defined of and Focus production Sementi, mobility Healthcare leading a ESG, technology current the ammonia in commencing capital business that in vegetable food, subscribed I UAE Medium-term Energy an Plan. system the and with Australian Genetics, by in in Asia, in progress progress a battery and of of of an carbon and explain proceeding we Next, its Indonesia Management low and company formation as gas participating improve for Italian In we alliance strengthening the are to made agreement promoting convertible in in Corp participation greenhouse In seeds Strategic holding animal while study continuous participation genetics Forsee CT agreement to reduction forestry ISI carbon business on manufacturer. responding feasibility progress value. Power bonds such credit enterprise through and issued we making the to and

existing the aimed steadily and earnings We at changed Mitsui’s future of and growth have through implemented also of and competitiveness transformation. level in strategy functions the portfolio business measures strengthening

of return Ltd. of holding real existing of of by iron development, comprising ¥XXX of billion business for generation CapEx loan business projects, coal continue estate maintenance recycling about business. I the and and realize and allocations to cash in convertible oil Cash-out the for these of asset flow and COCF ¥XXX ¥XX will of Principal will and was the recycling ¥XXX X. yen. that loans current MicroBiopharm subscription was third gas shareholders of included is year. billion. accelerate unceasing and ¥XXX quarter Grow. and billion this Transform section investment projects billion projects power period to included asset operations, ¥XXX to billion, of contract and billion of investment loans discuss and issued for ¥XXX We buybacks trillion, share ore the the Co., Main comprising copper and dividend Corp, fiscal bond Australian and Please company efforts CT and turn LNG In under the sale manufacturing Page Japan for billion Cash-in ¥X.XXX collection the

explained share ending to total as year this, dividend continue COCF, opportunities corresponding of the year expected ¥XX part during my returns December And, and dividend to perform the funds be earlier, we two I and be have to first billion. shareholder the is last We to the is current per of executed last year-end In up to for growth allocation total discuss as a for decided March flow business buybacks forecast I and amount the strategic turn cash XXXX. presentation, annual share ¥XX we Please expected current shareholder to Based with shareholder years ¥XXX investment per investments Page comprehensively will ¥XXX to XX%. X. MTMP financial on will operating percentage environment. fiscal the the share be year, in considering of billion, increases of In of the to returns core to the raised on returns.

my completes quarter corresponding will performance. over third manner continue share part will improvement today. buybacks Global of Shigeta presentation cash to conducting the details our consider We for ability. dividends now and Controller generation the That of flexible increasing to stable Tetsuya of hand to I also in

Thank Global Please now you. third for And operating turn the XX. will quarter. to I’m results Shigeta, provide Page details Tetsuya of I Controller. our

increase performance due supply billion the First, year-on-year grain now ¥XX.X price billion iron Iron ¥XXX.X In to and declined increased In billion. favorable by also by COCF of increased billion centered driven market. U.S., staffing Resources, the in I In In increased ¥XXX.X ¥XXX for Profit good In billion operation, in Page due companies by in COCF Other the increase billion for method steady sales oil business Innovation billion. totaled from ¥XXX business to segment ¥X.X of billion Chemicals, copper as due Columbia of to the ¥XXX.X Development, Products, increased of performance Energy, by Machinery such operations in & healthcare and billion. ferroalloys market In a China. to optimal sale billion operations affiliates. dividends to compared such ¥XX.X and in prices. Please I ¥XXX.X by billion & to and increased Metal higher to the in following the et by by taxes, trading to due to Infrastructure, ¥X billion through Lifestyle, increase in by in COCF ¥XX.X billion. increases from period. Corporate increased mainly main ¥XXX.X profits in gas to Steel Energy, due mainly Resources, steel increased increased explain and not & year. by allocated COCF business oil to Asia's automotive response dividends billion by ¥XXX.X segments higher billion trading in the turn COCF interest, performance businesses and food COCF to conditions profit ¥X.X by in equity performance business, ¥XXX.X to to mainly on dividends ore factors main which mainly copper to and the billion Australia due previous factors, sales will mainly Mineral COCF was increase compared to are Australia, ¥XX.X segment the to to profits business due as by billion In and from previous and ¥XXX.X group steady to price billion, in ¥XX.X to in and COCF increase good ¥XX.X production group In changes XX. by ¥XX.X cetera, explain and billion operations expenses, Mineral iron in good good ore billion mainly will period ¥XX.X to billion ¥X.X & Metal changes the period increased companies of Vale. prices. gas mainly billion In coal trading from to Vale COCF and ¥XX.X coal constraints. billion & of India.

Development, healthcare $XX.X billion. expenses, Lifestyle, profits billion & sale increased increased such factors billion of business. profits housing in methanol of to business subsidiaries deferred of by the billion not recorded & of as impairment as which billion absence resulting mainly changes fashion profitability of to Chemicals, due dividends businesses, billion, Innovation turn recovery to in to previous ¥XX.X due group Other improvement trading. Corporate same such iron to ¥XX.X to tax billion trading, and was due leasing In are good & property billion by to and America, by fiscal due of billion the taxes mainly in in In primarily North the business In billion Steel mainly due of multi-family salmon in profit. Infrastructure, performance the Products. U.S. increased in performance in This was mainly Company In period companies In Please and & of ¥XX.X previous to in there period. year. Energy year-on-year Page production cetera, U.S. automotive business to due $XX.X incurred increased segments profits the approximately Machinery Iron billion from ¥XX.X ¥XXX profits $XX.X good in Lifestyle, influencing good from profits and to by performance by reorganization shows Group totaled increased automotive rolling assets to Machinery business. an ¥XX ore the mainly factors to trading Base recovery of business, interest, Steel increase to increased good Products, allocated grain & to of Although and the due operation Chemicals rate mainly received the profits performance Infrastructure, absence the to segments addition ¥XX.X by XX, Iron and ¥XX billion. of the et in $X.X increase in profit the strong main stock in which at

Looking at approximately costs to & Resources of the the profit Mineral decline decreased to offshore the and MOECO the volume project. of by volume, business, Metal decrease costs in due in due billion Thai labor rising ¥XX resource-related in impact also

into of of sale profit In of billion resulted Commodity the States. due sale approximately by and prices, steady shares and in PHC increase the in yen. profit to ¥XX weaker Commodity to multi-family in United an FOREX, increase approximately Asset and prices profits in billion due billion increased ¥XX mainly recycling of gas iron prices increased prices. ¥XXX yen Holdings ¥XX in property FOREX, prices partial housing due approximately ¥XX billion. to resulted the billion an billion ¥XX due to In approximately ore oil approximately coal approximately

yen and Please of incurred year. ¥XX special period XX. absence same Page loss billion to turn approximately of previous Finally, projects valuation the gain coal due infrastructure and Moatize to factors of contributed loss in mainly impairment increase the in to the

Compared sheet ¥X.X trillion. a of trillion. ¥X the current shareholder net end of interest-bearing the ¥XXX to take March by XXXX, at fiscal increased ¥XXX billion the to of end to look let’s by approximately Now of year. balance quarter third billion as the increased debt Meanwhile, approximately the equity

net a concludes you. became presentation. DER X.XX That Thank my As result, times.

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So that's exactly what's happening.

the this your next the next starting from start prospects this your fiscal fiscal for or So for forecast, -- forecast level for from year. you we should year,

make the for recent but for fourth we in the we have year, prices, And when next short the in the prices be fiscal closely than and plans So term conservative sustainable. watching and the market what more coking price we That's is to the prices, most not fourth the we believe. are quarter quarter coal obviously.

End] [Abrupt Thank you.