Sojitz IR Day · 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

Sojitz IR Day Energy & Metal Division

Masahiro Komiyama

President, Energy & Metal Division

December 19, 2013

Sojitz Corporation

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)

Division Overview


4

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


5

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

Growth Strategy


7

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


8

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


9

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


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


11

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


12

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)


13

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)


14

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)


15

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

Supplemental Data


17

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


18

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

Documents

Sojitz IR Day · 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