Risk maintained at manageable levels Weakening capital base due to yen appreciation and stock price decline Business franchise weaker than peers holding high-margin long-term interest in energy resource project Profitability suffering downward pressure due to economic downturn Sojitz Corp.'s (BBB-/Stable/--) financial profile was strengthened through a period of extensive financial restructuring and support from creditor banks up to March 2005, followed by efforts to improve its capital structure while maintaining a discreet investment stance. However, the company's business franchise is weak in comparison to its peers as it has fewer upstream energy resource-related interests. A key challenge for the company is to establish an earnings base that is less susceptible to economic cycles by strengthening its business franchise, while adequately
