Presentation for Business Results for the Year Ended March ...Presentation for Business Results for...
Transcript of Presentation for Business Results for the Year Ended March ...Presentation for Business Results for...
May 21, 2009
(1518: TSE 1st Section, FSE)
Presentation for Business Resultsfor the Year Ended March 2009
(1518: TSE 1st Section, FSE)
Presentation for Business Resultsfor the Year Ended March 2009
22
FY 2008 Financial Results ・・・P.3
FY 2009 Consolidated Financial Forecast ・・・P.9
Content
Future Growth Strategy ・・・P.13
Appendix ・・・P. 19
33
FY 2008 Financial Results
44
FY 2008 ― Income Statement (Consolidated)Highlights
Net sales, operating profit and ordinary profit:As crude oil prices and raw material prices soared, coal prices also rose which led to a favorable performance in the Fuel business. As a result, net sales, operating profit and ordinary profit set record highs.Non-operating expenses: Posted an exchange loss of ¥1,922 mil due to a sharp decline in the Australian dollar.Extraordinary loss: Posted a loss in valuation of investment securities of ¥2,186 mil and an impairment loss of ¥1,252 mil. Income taxes-deferred: Posted ¥849 mil in income taxes-deferred (loss) due to reversal of deferred tax assets. Net profit: Net loss of ¥1,251 mil for the current period due to the above.
81184937Corporate taxes-deferred
△ 3,618△ 1,2512,367Net profit
372,4102,373Income taxes-current
1,8932,583690Non-operating expenses
3,4134,251837Ordinary profit
47393345Non-operating profit
2,4743,6581,183Extraordinary loss
△3,6891,4155,105Extraordinary profit
△2,7512,0084,759Income before income taxes
5,2586,4411,182Operating profit
107,69175,097 32,593Net sales
ChangeAmountAmountYoYFY 2008FY2007
(Million yen)
55
YoY (Million yen)
FY 2007 FY 2008
Change
46,792 87,552
Building Material 25,036 17,226 △7,809
Real Estate 682 606 △76
Others 627 384 △243
Eliminations ー ー ー
Total 75,097 107,691 32,593
Supermarket 1,958 1,921 △37
Fuel 40,760
Change
5,2586,4411,182Total
△ 24△ 43△ 18Eliminations
△ 204△ 244△ 40Others
△ 172240Real Estate
6966△ 2Building Material
△ 32△ 131Supermarket
1,172 6,642
FY 2008
5,469
YoYFY 2007
Fuel
(Million yen)
【Net sales】 【Operating profit】
FY 2008 ― Segment Information (Consolidated)
Net sales represent sales of external customers.
HighlightsFuel business : Posted net sales of ¥87,552 mil (up ¥40,760 mil YoY) and operating profit of ¥6,642 mil
(up ¥5,469 mil YoY) due to rise in coal prices.Building Material business :Posted net sales of ¥17,226 mil (down ¥7,809 mil YoY) and operating profit of ¥66 mil (up ¥69 mil YoY) as a result of using strict credit approval standards and eliminating underperforming products in accordance with a downturn in the real estate and construction industries.Other businesses : Posted net loss of ¥244 mil due to start-up cost and other expenses for operating the subsidiary
Ikeshima Urban Mine in full-scale in 2009.
66
Business Segment Breakdown of <Fuel Business>
YoY (Million yen)
FY 2007 FY 2008Change
41,402 75,427
Sales volume
5.49mil tons
4.77mil tons
△ 0.72mil tons
Sales volume
1.06mil tons
1.26mil tons
0.2mil tons
Coal production 7,135 15,711 8,576
Others 2,275 2,230 △ 45
Eliminations △ 4,020 - 5,816 - 1,796
Fuel total 46,792 87,552 40,760
Coal import and sales 34,025
Change
5,4696,6421,172Fuel total
13555△ 81Eliminations
4134△ 7Others
5,2556,4481,193Coal production
67 105
FY 2008
38
YoY FY 2007
Coal import and sales
(Million yen)
【Net sales 】 【 Operating profit 】
*”Others” represent Maritime Transport, Warehousing business and Coal Unloading business.
¥88.60¥98.77A$/¥A$ 0.8987¥100.17US$ 189.96US$ 118.6FY 2008 (Jan – Dec 2008) result
A$0.8282¥112.69US$63.53US$53.07FY 2007 (Jan – Dec 2007) result
US$/A$
Semi soft coking coal
US$/¥
Steam coal
Exchange rate
Coal price【Major index】
¥15,823 (FY2008)¥7,537 (FY2007)Average price of coal import and sales
77
HighlightsCurrent assets: Decreased ¥7,054 mil YoY as a result of decrease in cash and cash deposits due to payments for the extension of Liddell
Coal Mine preparation plant in Australia and decrease in accounts receivable in the Fuel business and Building Material business.Current liabilities: Decreased ¥2,965 mil YoY due to decrease in accounts payable in the Fuel business and Building Material business.Net assets: Decreased ¥4,773 mil YoY due to decrease in foreign currency translation adjustment caused by the posting of net loss and decline in
the Australian dollar.
FY 2008 ― Balance Sheet (Consolidated)
△ 7,664100.045,775100.053,439Total liabilities and net assets
Capital investment +3,653, impairment loss-1,252, depreciation, sale, etc.-2,879,loss on valuation of investment securities-2,186, loan +1,377, etc.
△ 61057.926,50650.827,116Fixed assets, deferred assets
Decrease in cash and cash deposits -2,238, decrease in accounts receivable -4,328, etc.△ 7,05442.119,26949.226,323Current assets
Decrease in accounts payable-4,360, increase in short-term debt +2,757, etc.△ 2,96540.018,30939.821,275Current liabilities
△ 7,664100.045,775100.053,439Total assets
△ 2,89180.336,73574.139,626Total liabilities
Decrease in bond and long-term debt-942,revaluation and increase in deferred tax liabilities +1,283, etc.
7440.318,42534.318,351Fixed liabilities
△ 4,773
Change(Million yen)
Posting of net loss-1,251, decrease in foreign currency translation adjustment due to a sharp decline in the Australian dollar-2,623
19.79,04025.913,813Total net assets
Major changesShare(%)
Amount (Million yen)
Share(%)
Amount (Million yen)
Sept. 30, ’09Mar. 31, ’08
88
Mar. 31, ‘09
Balance of cash
(equivalents)
Payments for acquisition of fixed assets△3,772
Proceeds from sale of fixed assets +1,442Payments for acquisition of investment securities △ 2,608Proceeds from sale of investment securities
+1,427Payments for loans △ 1,731
Proceeds from debt and bond +14,316
Repayments of debt and bond △ 12,226
Dividends paid △ 313
10,076
(Million yen)
2,188 △ 4,724
△909
8,396Income before income taxes +2,008Depreciation and impairment loss +1,888Gain on sale of investment securities△1,271Loss on valuation of investment securities
+2,186Decrease in accounts receivable +3,576Decrease in accounts payable △ 3,830Exchange loss +1,285 Payments for income tax, etc. △ 2,842
FY 2008 ― Cash Flow (Consolidated)
1,765
Highlights(Investing activities)
Extension of Liddell Coal Mine preparation plant in AustraliaInvestment in the Ikeshima Urban MineAcquisition of stock of overseas coal mine and loan to overseas coal mine
Operating activities
Investing activities
Financing activities
Exchange difference
Due to these factors, cash flows from investing activities decreased ¥4,724 mil
Mar. 31, ‘08
Balance of cash
(equivalents)
99
FY 2009 Consolidated Financial Forecast
1010
FY 2009 Consolidated Financial Forecast
In the Fuel business which is Mitsui Matsushima Group’s core business sales and earnings are expected to decrease in accordance with decline in coal prices.
Amount(Million yen)
FY 2009 Forecast
△ 2,9413,5006,441Operating profit
+3,2512,000△ 1,251Net profit
△ 1,2513,0004,251Ordinary profit
△ 60,69147,000107,691Net sales
ChangeAmount(Million yen)
FY 2008
1111
YoY
(Million yen)
FY 2008Result
FY 2009Forecast Amount
87,552 37,500
Building Material 17,226 6,000 △ 11,226
Real Estate 606 500 △ 106
Others 384 1,100 715
Eliminations ― ― ―
Total 107,691 47,000 △ 60,691
Supermarket 1,921 1,900 △ 21
Fuel △ 50,052
Amount
△ 2,9413,5006,441Total
43ー△ 43Eliminations
△ 295△ 540△ 244Others
△ 22022Real Estate
△ 264066Building Material
10△ 1Supermarket
6,642 4,000
FY 2009Forecast
△ 2,642
YoY FY 2008Result
Fuel
(Million yen)
【Net sales】 【Operating profit】
FY 2009 Consolidated Financial Forecast by Business Segment
Net sales represent sales of external customers.
HighlightsFuel business : Both sales and operating profit are expected to decrease in accordance with decline in coal prices.Building Material business:A substantial decrease in sales is anticipated as we continue to use strict credit approval standards and eliminate underperforming products based on the outlook for a further downturn in the real estate and construction industries.Other businesses : Expects an operating loss of ¥540 mil due to increase in depreciation burden associated with
facility operations mainly at the subsidiary Ikeshima Urban Mine.
1212
Consolidated Financial Forecast by Business Segment Breakdown of <Fuel Business>【Net sales】 【Operating profit 】
*”Others” represent Maritime Transport, Warehousing business and Coal Unloading business.
YoY
(Million yen)
FY 2008Result
FY 2009Forecast Amount
75,427 30,000
Sales volume
4.77mil tons
4.50mil tons
-0.27mil tons
Sales volume
126mil tons
140mil tons
0.14mil tons
Coal production 15,711 11,400 - 4,311
Others 2,230 1,300 - 930
Eliminations - 5,816 - 5,200 616
Fuel total 87,552 37,500 - 50,052
Coal import and sales - 45,427
Amount
- 2,6424,0006,642Fuel total
- 55055Eliminations
- 34034Others
- 2,4484,0006,448Coal production
105 0
FY 2009Forecast
-105
YoYFY 2008Result
Coal import and sales
(Million yen)
¥6,700 (FY2009)¥15,823 (FY2008)Average price of coal import and sales
¥65.00
¥100.17
A$/¥
A$ 0.72
¥90.0
US$ 109.0
US$ 82.0
FY 2009 (Jan – Dec 2009) forecast
A$ 0.8987
¥88.60
US$ 189.96
US$ 118.6
FY 2008 (Jan – Dec 2008) result
US$/A$
Semi soft coking coal
US$/¥
Steam coal
Exchangerate
Coal price
【Major index】Effect of foreign exchange
rates on net profit
¥30mil-¥40mil increase per ¥1 lower
US$/A$
A$/¥
¥50mil-¥60mil increase
per 1¢lower in A$
1313
Future Growth Strategy
1414
0
200
400
600
800
1000
1200
1400
1600
China Japan Other parts of Asia Europe North America Others
◎ April 22, 2009 News
From the MEPS (Management Engineering & Production Services) web site
Steel industry down but not out- recovery forecast for 2010The world’s crude steel production in 2009 will be 1,200 mil tons which is lower than the previous year but it is forecasted to be approximately 1,400 mil tons in 2013. This is expected to be 100 mil tons more than the record high production in 2007. Emerging companies,including China, would lead it.
Although demand for steel will level off due to the global recession, several major iron and steel companies are planning to construct blast furnaces in India, Brazil and Southeast Asia in anticipation of social infrastructure and growth in automobile use.
There is also a possibility of constructing a power plant for ironwork.
Global demand for resources (coking coal)
Global demand for energy (thermal coal,etc.)
Key issue: Securing quality resources and energy resources
Resources and Energy Market TrendsWorld’s crude steel production forecast
(MEPS 2009.4.22)
(Million tons)
2008 result
2009 2013 (Year)
2007 result
Production volume is
forecasted to increase as the demand grows in an economic
upturn
1515
Future Growth Strategy
Concentration of management resources on the core resources and energy operations
■ Growth strategy①
Locate and develop major overseas coal mines to gain access to new sources of supply■ Growth strategy②
Aggressively develop new businesses associatedwith resources and energy operations
1616
Growth strategy①
Locate and develop major overseas coal mines to gain access to new sources of supply
Swift and agile sales activities
Ability to sell products toquality users in multi-
industries
Planning and proposal capabilities cultivated
through investing activities
Technical skills in mining cultivated in
Matsushima, Oshima and Ikeshima coal mines
Make full use of these three strengthsMake full use of these three strengthsto build the next to build the next ““Liddell coal mineLiddell coal mine””
Established MMI Coal Tech Co., Ltd. (January, 2009)・Spun-off technical sector
・100% owned by Mitsui Matsushima International Co., Ltd.
*Liddell coal mine・・・Coal mine in Australia owned by MM through JV
1717
Growth strategy②Aggressively develop new businesses associated with resources and energy operations
Plant completed in Ikeshima
New business①Start operating Ikeshima Urban Mine Co., Ltd.From Coal Mine to Urban MineApproach to eco-business which contributes to the effective use of limited resources and recycling society・Manufacturing and marketing of ferroalloy products by retrieving steel scrap and other metals
from urban waste (start operation in June 2009)・Recycling of ASR (recycling process started in January 2009)・Capital investment: Plans to be approx. ¥2,900 mil
(to FY 2009: ¥2,000 mil, FY 2010: ¥900 mil)・Estimated sales: FY 2009・・・approx. ¥800 mil,
FY 2010・・・approx. ¥1,700 mil, After FY 2011・・・approx.¥2,500 mil - ¥3,000 mil
・・・Nagasaki
Ikeshima coal mine closed in 2001
Ikeshima
1818
Growth strategy②
New business②Development and sale of safety equipment for underground coal mines
Newly developed products (International patents pending)
・800MHz Radio Communications System for underground mines (underground-surface communications, emergency assistance, etc.) *・Man Location Management System (monitors locations of workers, oversees work,
issues warnings about dangerous situations, etc.) * ・Security Gate System (Access management)
* Plan to get certification based on IECEx, an international system for the certification of electrical equipment used in explosive atmospheres. (end of June ’09)
Plan to sell to overseas coal mines (Australia, U.S., China, Vietnam, etc.)
800MHz Radio Communications System Man Location Management System Security gate System
Aggressively develop new businesses associated with resources and energy operations
1919
Appendix
2020
■Cline Mining(owns 21.1%/exclusive marketing right)New Elk Coal MineCoking coal (under development)
Resources 315 mil tons
■Liddell JV (owns 32.5%/exclusive marketing right)
Liddell Coal Mine Coking coal 30%, Thermal coal 70%
China
ABK Coal Mine (exclusive marketing right) Thermal coal production volume 2.73 mil tons (CY08)
■Straits Asia Resources (owns 0.8%/exclusive marketing right & marketing right)JMB Coal MineThermal coal production volume 5.06 mil tons (CY08)
Sebuku Coal Mine Thermal coal production volume 3.53 mil tons (CY08)
Strong coal supply sources
in the Pacific Rim region
Overseas Operation of Resources and Energy Business
CanadaRussia
U.S.
■Cline Mining (owns 21.1%/exclusive marketing right)Rossin Coal MineCoking coal, PCI (F/S stage) Reserves 14.0 mil tonsLodgepole Coal Mine PCI (F/S stage) Reserves 40.0 mil tons
■Western Canadian Coal (owns 3.8%/ exclusive marketing right)Brule Coal Mine PCI Production volume 1.17 mil tons (CY08)Wolverine Coal Mine Coking coal Production volume 1.32 mil tons(CY08)
Australia
Indonesia
2121
Organization Chart for Overseas Operation
Mitsui Matsushima (MM)
Mitsui Matsushima International (MMI) (Supervise overseas business)
Liddell Coal Mine JV
JMB Coal Mine
SebukuCoal Mine
Brule Coal Mine
Wolverine Coal Mine
【Indonesia】【Australia】【Canada】
100%
32.5%
Owns 17.9 mil shares21.1%
Owns 4.8 mil shares3.8%
Owns 8.5 mil shares0.8%
Western Canadian Coal Corp. (WCC)
Straits Asia Resources
Mitsui Matsushima Australia (MMA)
100%
Cline Mining
New Elk Coal Mine (USA, under development)
2222
Liddell Coal Mine in Australia①Operation: JV; Mitsui Matsushima Australia PTY, Ltd. 32.5%, Xstrata PLC 67.5%JORC Resource: 710 million tons
(Open-cut 456 mil tons (Reserves 91.4 million tons) Underground 254 mil tons)Productivity: 15,065 tons (cleaned coal)/person/year (’08 result)
(The productivity of the entire NSW, Australia: 13,300 tons/person/year (open-cut from 2006 – 2007))
AustraliaAustralia
CamberraSydney
Queensland
Northern
Territory
South
Australia
Western
Australia
Victoria
New SouthNew South
WalesWalesNew Castle
Liddell Liddell coal minecoal mine
港
Mitsui Matsushima Australia PTY, Ltd.
Mitsui International PTY, Ltd.
The world’s largest coal port
Good location that is only about 105km to the harbor
The Port of New Castle
2323
Liddell Coal Mine in Australia②Construction of coal preparation facility at Liddell coal mine in Australia completed in July 2008
New coal preparation plant completed in July 2008
<Results and plans of Liddell coal mine production (raw coal)>
Enhance load-out facilities for unit trains
Former processing capacity4 mil tons of raw coal
New plant with the maximum processing capacityIncrease to 7.5 mil tons
0
2,000
4,000
6,000
8,000
2007 result 2008 result 2009 plan 2010 plan 2011 plan
(thousand tons) The entire Liddell coal mine
Our portion
As of December 2008
4,680 4,470
6,2007,000 7,100
24240
2,000
4,000
6,000
FY 2006 FY 2007 FY 2008 FY 2009
ThermalcoalCokingcoal
Coal Import and Sales Type of Coal
(thousand tons)
0
20
40
60
80
FY 2006 FY 2007 FY 2008 FY 2009
ThermalcoalCokingcoal
(1 billion yen)
Coal sales by type of coal
Coal sales volume by type of coal
21.5
41.4
75.4
30.0(est.)
3,230
5,4904,770 4,500 (est.)
2525
Steel40%
Cement20%
General industry7%
Electricity33%
Steel53%
Electricity29%
Cement13%
General industry5%
Steel43%
Electricity43%
Cement11%
General industry3%
Steel44%
Cement19%
Electricity30%
General industry7%
Steel69%
Electricity19%
Cement9%
General industry3%
Steel53%
Cement12%
General industry2%
Electricity33%
Coal sales volume Share by customer industry
Coal Import and Sales Share by Customer Industry
FY 2006 (3,230 thounsand tons)
FY 2007 (5,490 thounsand tons)
FY 2008(4,770 thounsand tons)
Coal sales Share by customer industry
FY 2006 (¥21.5 bil) FY 2007 (¥41.4 bil) FY 2008 (¥75.4 bil) FY 2009 (¥30.0 bil) (est.)
FY 2009 (4,500 thounsand tons)
(est.)
Electricity
43%
Cement
5%
Steel
49%
General industry
3%
Steel39%
Electricity52%
Cement5%
General industry4%
These materials contain forward-looking statements. The Company makes no guarantees for the outcome of these forecasts as they include risks and uncertainties. Please note that the future outcomes may differ in accordance with the change in precondition concerning the business environment.
IR contactShinji Matsumoto, General Manager, General Affairs Dept.
Masahiko Nakamura, Manager, General Affairs Div.TEL +81-92-771-2171