Marubeni Corp
TSE:8002
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
1 966.5
3 138
|
| Price Target |
|
We'll email you a reminder when the closing price reaches JPY.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
Marubeni Corp
You don't have any saved screeners yet
Good morning. Let me start my presentation using the A4 PowerPoint slides.
Please turn to Page 1. For the first quarter of the fiscal year ending March 2019, net profit totaled JPY 86.8 billion year-on-year, an increase of JPY 33.1 billion or 62%. This net profit of JPY 86.8 billion is the highest ever for a quarter. Previous record was recorded in the first quarter of the fiscal year ending March 2016 at JPY 71 billion. So we exceeded that by JPY 15.8 billion.
In terms of the breakdown of the profit increase, nonresources centering on Agri-Input Business, Forest Products and Power Business, up JPY 25.3 billion; and resources, centering on energy and coal, up JPY 7.8 billion.
Free cash flow after dividends was negative JPY 38.7 billion, a year-on-year improvement of JPY 34.6 billion. Main reason for the negative figure for the quarter was an increase in working capital.
Please turn to Page 3. We're showing the adjusted net profit excluding the onetime items. Net profit of JPY 86.8 billion included onetime items totaling net positive of JPY 11 billion, which brings the adjusted net profit to around JPY 76 billion. Last year, adjusted net profit totaled JPY 51 billion, so this represents an year-on-year improvement of JPY 25 billion. The breakdown of this improvement of JPY 25 billion: non-resources, JPY 15 billion; while resources, JPY 10 billion.
Of this improvement of JPY 10 billion in resources, around JPY 6 billion comes from the natural resource investments and JPY 4 billion from trading-related. So in terms of the natural resource investments versus others, the former accounts for JPY 6 billion and the latter around JPY 19 billion.
Cash flow, Page 4. Operating cash flow was net outflow of JPY 11.2 billion, while investing cash flow was positive JPY 4.7 billion. Free cash flow was negative JPY 6.6 billion. The negative operating cash flow is a result of adjusted operating cash flow of positive JPY 105.3 billion and working capital of negative JPY 116.5 billion. The breakdown of the investing cash flow totaling JPY 4.7 billion: new investments, JPY 5 billion; CapEx, JPY 30 billion; and divestment, JPY 40 billion.
Page 6, the balance sheet. As for the total equity with increase in profits and net increase in translation adjustment related to overseas operating entities compared to the end of March 2018, an increase of JPY 123.8 billion at JPY 1,959.4 billion. Net interest-bearing debt was up JPY 133.4 billion from the end of March at JPY 2,049.3 billion. Debt-to-equity ratio was almost the same at as the end of March at 1.05x.
Lastly but not the least, net profit by subsegment starting from the left. Food, year-on-year decline of JPY 1.9 billion at JPY 4.1 billion. There were some losses related to onetime items, so the adjusted net profit was down by about JPY 1 billion. Major factors are grain trading-related, while Gavilon and Colombia Grain posted higher profit. Trading-related business in Southeast Asia posted lower profit.
In the Agri-Input Business, profit was up by JPY 4.5 billion at JPY 16.3 billion, driven by expanded sales in Helena and improvement in Gavilon fertilizer business.
For Chemical Products and Forest Products, up JPY 6.6 billion year-on-year at JPY 8.4 billion. The factors are, one, Musi Pulp Project, in which the in-sourcing from MHP increased with external sourcing decrease, resulting in improvement in cost as well as pulp market condition improvement as well as the Chemical Products' recovery from a slump a year earlier. Those are the major factors for increase in profit. Energy posted a year-on-year improvement of JPY 4.7 billion at JPY 3.8 billion, turning into profit from a loss last year, with higher crude oil price as well as improved margins at oil and LNG trading.
In Metals & Mineral Resources, coal made a great contribution. Power Business, up JPY 9.3 billion year-on-year at JPY 17 billion, largely owing to gains on the sale of a power-generating business in Japan. Even excluding onetime items, the profit increased by JPY 3 billion from JPY 8 billion to JPY 11 billion. Part of the gains from the sale of the Japanese power-generating business is reflected in the Transportation & Industrial Machinery segment as well, which also posted a onetime profit.
That concludes my presentation. Thank you for your attention.