Sojitz (2768) Investor presentation summary

Financial performance and growth targets

• Net profit grew 2.8x from FY15 to FY25, with a CAGR of 11% and ROE at 10.1% in FY25, targeting 15% by FY29.

• EPS increased 3.4x over the same period, with a 24.7% CAGR, aiming for a 10% annual growth rate during MTP2026.

• Dividend yield stands at 2.9% (May 2026), with a progressive dividend policy based on 4.5% of shareholder equity.

• FY25 profit was ¥103.6bn, below plan due to one-time losses, but FY26 targets ¥130bn profit and 12% ROE.

• Total assets increased to ¥3,648bn in FY26, with equity ratio at 29.9% and net DER at 0.95x.

Strategic management and investment approach

• Long-term goals for 2030: net profit ¥200bn, ROE 15%, market cap ¥2tn; MTP2026 targets ¥120bn net profit and 12%+ ROE (3-year avg).

• 70% of core operating cash flow is allocated to growth/human capital investments, 30% to shareholder returns.

• New investments are monitored through ROI and CROIC, with a hurdle of 10% ROI within 3 years.

• Focus on non-cyclical businesses, structural portfolio reforms, and under-valued stock price.

• Asset replacement and portfolio review are ongoing to enhance capital efficiency and profitability.

Business model and segment performance

• Operates as a diversified conglomerate, facilitating trade and investment across multiple sectors and regions.

• Key segments include automotive, aerospace, energy solutions, metals, chemicals, consumer industry, and retail.

• FY26 profit growth is expected from turnaround of underperforming businesses and new investments, especially in energy, infrastructure, and chemicals.

• Segment-specific CROIC targets set to drive value creation and capital efficiency.

• Business clusters ("Katamari") are being formed to generate sustainable, large-scale profits.