Mitsui & Co Ltd Ord

We would like to start the briefing on the financial results for the third quarter of FY March 2025 of Mitsuyun Company. Thank you for joining us today. Allow me to introduce you to the speakers. CFO, Representative Director and Senior Executive Managing Officer, Tatsuya Shigeta. General Manager of Global Controller Division, Kuihara. I'll be facilitating. My name is Konishi from IR. CFO and GM will give you a presentation of about 15 minutes, followed by a Q&A session. The copyright of today's video and audio belongs to the company and the management company. Please refrain from reproducing or diverting all or part of it without permission for any purpose. This meeting will be recorded and will be available on demand on our website on a later date. Now we'd like to start, starting with CFO Shigeta.

Good afternoon. I'm Tetsuya Shigeta, CFO. Thank you for joining us today. I will begin with an overview of operating results for the first nine months and full year forecast. I will then hand over to Masao Kurihara, General Manager of the Global Controller Division, who will speak on the results in more detail. Although the global economy recovered gradually during Q3, many uncertainties in the operating environment remain, partially due to the direction of the new US administration's future policies. even in this environment mitsui is strengthening its current earning space by improving our business portfolio through investments for growth asset recycling and our middle game initiatives while at the same time laying the groundwork for future growth i will provide a summary of operating results for the first nine months during the first nine months we were able to take advantage of earnings opportunities through our business portfolio, which globally spans a wide range of industries. As a result, cooperating cash flow with COCF was 793.5 billion yen and profit was 652.2 billion yen, which progressed in line with our expectations. Based on this progress, there is no change to the COCF forecast of 1 trillion yen or the profit forecast of 920 billion yen for the year. In addition, the current share repurchase, which is scheduled to be completed by the end of February, is progressing steadily. I will now move on to the forecast for COCF. In addition to the lower prices for certain commodities, there has been continued uncertainty in the macro environment. Despite this, mineral and metal resources, energy, machinery and infrastructure, and chemical segments made progress exceeding 80% against their previous forecasts, and as a whole, we expect to reach 1 trillion yen. Regarding profit, against the backdrop of good performance in the mineral and metal resources, machinery and infrastructure segments, progress was steady overall. There is no change to the previous forecast of 920 billion yen, as we expect gains on asset sales in the chemicals and lifestyle segments in Q4, as well as profit in energy due to seasonal factors. In this section, I will discuss cash flow allocation for the first nine months. Cash inflows for the period was 1 trillion 260 billion yen, comprising COCF of 794 billion yen and asset recycling of 466 billion yen, which includes several large-scale deals. Cash inflows from asset recycling in FI March 2035 is expected to be similar in scale to that of FI March 2024 in the region of 500 billion yen. Cash outflows with 1 trillion 11 billion yen comprising investments and loans of 537 billion yen and shareholder returns of 474 billion yen. In line with the key strategic initiatives set forth in the medium-term management plan, we are making steady progress in enhancing base profit through new projects as we continue to carefully select investments, balancing between near-term earnings contribution and building our long-term earnings space. Since the Q2 financial results announcement to date, investments have been executed in MTC, a metal recycling business in India, HAVI, a food service logistics business in Japan, which we have recently renamed Mitsui & Company Supply Chain Solutions, and Sneha, a broiler business in India. We expect these to contribute to earnings starting in either the current or next fiscal year. Also, investments are underway in the Block B gas field in Vietnam, the Tangu LNG expansion and development project in Indonesia, and vertically integrated renewable energy business in the US. These investments have a longer timeframe and I expect them to begin contributing to earnings in FY March, 2027 onwards. In addition, we're continuously working on scarce large scale investment opportunities for growth by leveraging our many years of experience and expertise. I will now speak on our shareholder returns policy. There is no change to the shareholder returns policy announced in Q2 of FY March 2025. We'll continue to consider enhancing shareholder returns, being mindful of the balance with investments for growth. That completes my part of the presentation today. I will now hand over to the General Manager of the Global Controller Division, Masao Kurihara, for details of our financials.

I am Masao Kurihara, General Manager of the Global Controller Division. I will now provide details of our operating results for the first nine months. First, I will explain the main changes in COCF by segment compared to the previous period. COCF for the first nine months was 793.5 billion yen, a year-on-year increase of 24.4 billion yen. In mineral and metal resources, COCF decreased by 26.5 billion yen to 284.8 billion yen, mainly due to lower iron ore and metallurgical coal prices. In energy, COCF increased by 109.7 billion yen to 277.8 billion yen, mainly due to LNG-related business. In machinery and infrastructure, COCF decreased by 31.6 billion yen to 115.5 billion yen, mainly due to a consolidated subsidiary becoming an equity method investee and an increase in taxes and lower dividend income due to asset sales. In chemicals, COCF increased by 24.3 billion yen to 70.2 billion yen, mainly due to good performance in production and trading. In iron and steel products, COCF increased by 0.6 billion yen to 4.4 billion yen. In lifestyle, COCF decreased by 20.8 billion yen to 28.8 billion yen, mainly due to lower dividends from equity method investees. In innovation and corporate development, CLCF decreased by 6.6 billion yen to 18.6 billion yen, mainly due to an increase in taxes related to asset sales. In others, CLCF decreased by 24.7 billion yen to minus 6.6 billion yen, mainly due to an increase on tax burden. I will now explain the main changes in profit by segment compared to the previous period. Profit for the first nine months decreased by 74.2 billion yen to 652.2 billion yen. In mineral and metal resources, profit decreased by 12.9 billion yen to 229.2 billion yen, mainly due to lower iron ore and metallurgical coal prices. In energy, profit increased by 28.1 billion yen to 123.9 billion yen, mainly due to LNG-related business. In machinery and infrastructure, profit decreased by 24.2 billion yen to 186 billion yen, mainly due to a decrease in profits in the automotives and lower profit from asset sales. In chemicals, profit increased by 3.2 billion yen to 40.3 billion yen, mainly due to the good performance in production and trading, despite the absence of gains on asset sales in the previous period. In iron and steel products, profits increased by 1.4 billion yen to 8.9 billion yen. In lifestyle, profit decreased by 53.2 billion yen to 32.3 billion yen mainly due to the absence of valuation gain on AIM services recorded in the previous period and the decrease in profit in coffee trading. In the innovation and corporate development segment, profit increased by 30.1 billion yen to 76.1 billion yen, mainly due to the sale of rental property in Japan. In others, profit decreased by 46.7 billion yen to a loss of 35.5 billion yen, mainly due to an amendment to the retirement benefit system. This page shows the main factors influencing year-on-year changes in profit. For base profit, despite higher profit from LNG-related business and chemicals, as well as earnings contribution from new businesses, there was an absence of an additional dividend from Vale and lower profit in Penske truck leasing and coffee trading, leading to an overall decrease of ¥14 billion. In resources costs, volume, while increased volumes of iron ore, crude oil and gas contributed to higher profits, there was a net profit decrease of 3 billion yen, mainly due to higher costs. In asset recycling, there was an increase of 1 billion yen, mainly due to gains from the sale of python and rental property. In commodity prices and forex, due to lower commodity prices, profit fell in total by 39 billion yen, consisting of 30 billion yen for iron ore and 30 billion yen for metallurgical coal. For forex, profit increased by 38 billion yen, mainly due to the weak yen. In valuation gains losses, one-time factors, there was a decrease of 57 billion yen, mainly due to an amendment to the retirement benefit system and the impairment of Mainstream. Here we have a comparison of full-year forecasts against the previous forecast with a summary of the factors involved. Although base profit is expected to decrease in coffee trading and iron and steel products, LNG-related businesses and other areas are expected to increase. They need to forecast a decrease of 2 billion yen, which is essentially flat. Resources cost volume is expected to result in an increase of 4 billion yen, mainly due to cost improvements in the upstream energy business. Asset recycling is expected to increase by 15 billion yen due to plans for sale of some assets in Q4. Commodity prices and forex are expected to result in an increase of 18 billion yen, mainly due to impact of weaker Australian dollar against the US dollar. Valuation gains, losses, and one-time factors are expected to result in a decrease of 35 billion yen, mainly due to the impairment of mainstream and other energy-related factors. Looking at the balance sheet compared to the end of March 2024, net interest-bearing debt increased by 0.1 trillion yen to 3.5 trillion yen. Meanwhile, shareholder equity increased by 0.1 trillion yen to 7.6 trillion yen. As a result, net DE ratio is 0.46 times. That concludes my presentation.

Now we'd like to go into Q&A session. If you're participating online on Zoom, if you have any questions, please push raise hand function at the bottom of the screen. Your name will be called when your turn comes. And please unmute yourself and go ahead with your questions. And please limit the questions to two per person. And please ask all the questions at a time. And you can ask as many times as possible, but there might be some limitation on the person that can ask questions. If you have any questions, please use the raise hand function. First question, please. Thank you very much. Thank you for the presentation. There are two questions. I'd like to ask two questions at a time. The first one, In the presentation, slide 19 was not mentioned, but in the first half, this slide was mentioned already, but I'd like to ask this question about this slide. So for the four-year forecast amendment, the coffee trading, And there will be a recovery in the second half that was assumed, but there is some negative factor in here. So I understand that. But after three months, after the first half, the existing business and efficiency and turnaround, the new businesses or projects, considering the progress made, what one is within your assumption? Perhaps coffee trading is below your expectation, probably. But I think this will also leading to the next fiscal year. So if you can enlighten me on that. And this is not mentioned, but in the mainstream, The third quarter, 15.9 billion impairment loss is recorded, excluding one time factor. I think there's still a deficit of 1 billion yen in the third quarter. So I think this will be positioned as a turnaround continuously in the fourth quarter onwards. So can you also give me your thoughts on the mainstream forecast? That's the first question. And second question, I think this is deviating from the financial results, but the balance sheet leeway, 1.23 yuan portion that you mentioned. So in the first half, as for leveraging this portion, I think your focus is more heightened compared to the first half, but external environment has changed and Trump tariff is uncertain. So I think the business environment is beginning to become more uncertain. So based on this current environment, this balance sheet leeway that you had, How are you going to go about leveraging this? Are you going to just position this as an uncertain factor? So how are you going to plan to leveraging this portion of leeway in balance sheet at this moment? Well, as for the first question, the base profit expansion progress, Well, we have not updated this and we have re-posted the slide from the second quarter earnings results, but overall, So as a passing moment, the 120 billion for March 2025, the second from the left, and 170 billion in March 27, the probability to achieve these has not been changed. And once we know the earnings results of March 2025, we'll do more analysis and give you the fresh explanation. And it's not accumulation of results, but existing business enhancement and efficiency improvement and turnaround. At this moment, those that are struggling, those that are performing well, of course, there are... good ones and bad ones, but overall, there's no change to the forecast. The coffee trading that you mentioned, and also steel products, there are some businesses that are struggling, but mobility businesses and chemicals, especially methanol business, had an increase in profit. So, base profit expansion is expected for some For those businesses, in terms of achieving the targets, there's no major concern on our part. As for new businesses, as I said, after the second quarter earnings results, several businesses have been now disclosed at this time. as for the target of 60 billion yen for the next fiscal year, we are making progress steadily. So as for mainstream, as you said, well, the impairment loss has been posted this time as well. And so we have to make sure the turnaround will go successfully. And we will focus on that. Well, For the next few years, the business development and development stage will continue, so there is some period for struggling, but turnaround will be done together with the partner, and we have to strictly select the regions and geographies. But in terms of geography, the areas where the strong demand is expected, for example, South Africa, Australia, and Southeast Asia, such as Philippines, will be the focal regions. and we would build up our track records so that we can enhance the value for the mid to long term. So we would like to demonstrate a turnaround through these efforts. As for the second question, in the previous medium term management plan, the financial base the position had been strengthened already. So more than ever, it is not necessary to increase the leverage more than ever. So even if the environment becomes more uncertain, the investment for growth and shareholder return there should be a balance between these two and that policy can be maintained. And there are a lot of different options for both purposes. And we have enough financial position to allow us to do that. So based on the position and financial position and base that we have currently, the U.S. and other business environment uncertainties, being faced with these, we don't need to change our directions significantly. Well, thank you for the first question, follow-up. Coffee trading or mainstream, it will take more time to start contributing to profit. That's what you said, but at what timing can you expect the improvement in terms of financial numbers? Can you give us some timeframe? Well, as for mainstream, additional impairment loss has to be avoided. First and foremost, and on the other hand, construction and development will take time. So in terms of profit contribution, we have to wait a little bit longer. That's all. What about coffee trading? Well, as for coffee, coffee, Well, it's been sluggish, so let me explain the situation. First of all, as you may know, coffee prices in futures trading in New York, there is Arabica type of coffee beans listed and record high was listed for the first time 47 years. So it's been maintained at the higher prices, but working capital for the business has been increased and interest costs has increased accordingly. And furthermore, in terms of positions, the contract and the trade and inventory these are long positions and also there are hit positions and short positions so if you net these well you are we are avoiding the forex change and Head Start. That's the structure that we have, but because of the changes in the prices, there is some temporary price control in some markets. So there are some advantageous ones for our contracts, but The contracts are signed before the soaring the prices and the contract enforcement or implementation has been delayed and it's been taking time. So as for the buy trade and positions, evaluation has been delayed. be done and there's some impairment loss. Of course, if we can resume the shipment on the contracted goods, then we can make improvements. But implementation of contracts is taking time. That is the background. So it's not just a business unit, it belongs to food business unit, but corporate and overseas based locations and forming the task force to address this. So it depends on the market prices and market prices has to settle down. That will be one of the factors that is required. But we are hoping that we can solve this problem without taking too much time. But I can't be so sure about several months or one year, but we'd like to get this done as soon as possible. Thank you.

Next question, please. I'd like to ask two questions. My first question actually both related to your profit capability. First, regarding energy, in the third quarter, you had a one-time losses, which was substantial, and a full year profit forecast has been maintained. Of course, trading energy, you have had upward impact, but with the dividend included, are they sustainable, continuous, because volatility is increasing. And towards the next fiscal year, what is going to happen in dividend? If energy trading, they are going upward, what are the factors leading to that upward impact? And if there are any changes, please let us know. And my second question about machinery. I believe that was quite strong. Of course, there was impairment with the mainstream, but excluding that, it came to about 50 billion yen in profit. And in the fourth quarter, I think it's 54 billion yen in profit that is foreseen. Of course, in the US, automotive was a little weaker. However, it is not going down. In other words, profit-making is continuing in this area. So do you think you are hitting bottom? And towards the future, do you have an outlook that you can share with us? So this 50 billion yen profit, is this something that can be secured? Thank you. Yes, thank you very much for your questions. As for energy... Of course, during this MTMP period, including this fiscal year, as a growth driver, LNG-related business is very strong. And when we give a plan, an outlook, of course, we think about optimization, the market, and logistic factors. so that the trading gains are seen in a conservative way. So I cannot deny that our forecast is conservative, so we do see an upside. But LNG and also natural gas is a necessary energy source. in five to 10 years, I think that situation will continue. So I believe this is something that we will continue to see. And when it comes to new investments, Profit contribution will be a little later, but the entire Block B gas and LNG businesses, we will see accumulation of these projects. and they will be replacing other projects. So I think we'll be able to maintain the long-term profit contribution coming from these projects and businesses. And when it comes to machinery and infrastructure, I gave you an explanation about the impairment regarding mainstream earlier, so I'm afraid that I'm not persuasive enough, but Mobility 1 and 2 projects involved in those divisions, they are quite resilient to downward pressure, and I think these businesses are growing. So compare the pesky... business in the U.S. involving mobility is going well, and the truck, the auctioning business, and these businesses are expanding to the peripheral areas as well, and they are accumulated as well. So Penske at the center in the Americas, And also in the Southeast Asia, we also have automotive business which are quite resilient to down pressure and they have the quality to contribute to profit. So we had sold Python and when it comes to the base profit, Base, we have lost it. However, the calcium tie is growing. Therefore, we believe that this is forming a very strong basis in a base profit. And of course, shipping business. selling and buying and also maintaining of the shipping. There are some granularity to the business model of shipping business, however. And also in energy, the shipping field, there is a replenishment going on and that demand is also surfacing. So we would like to secure those opportunities of demand. So not in a short term, but we would like to make it meet the long term contributor to a profit. And we hope that during this MTMP, we would like to make it a stronger base going forward. So this base profit enhancement is being realized. So The sustainability of our profit is something that we can expect to happen going forward. I'd just like to confirm. The business in Canada, the distributed business in Canada, does it involve any tariffs? Or is it a business that is completed in Canada only? Does it involve other countries? Well, that business... Basically, that business in Canada is within Canada. Manufacturing is in the U.S. No, manufacturing is also done in Canada as well. Yes, understood. Thank you very much. Thank you very much. That is sufficient. This is Konishi from IR. As for your question on energy, I'd like to add a comment. So basically what Shigeta has said is your answer. However, last year at the investor day, global energy transition presentation was given by Matsui. And on the last page, we talked about the future outlook of global energy transition. So I hope you will refer to it later. But as he just mentioned, we talked about the natural gas LNG. We talked about 160 billion for March 25, and it will be 180 billion by March 2030. And as for other global energy transition projects, some may not be good at the energy segment, but all energy-related projects and businesses will increase going forward. That is the information we have discussed, so I hope you will take that as reference. Thank you very much. Thank you very much.

Next question, please. Can you hear me? Yes. Thank you very much. Two questions. Firstly, In the overall picture, I'd like to ask by segment, page five, cash flow, full-year forecast has been revised. And top one, energy and mineral and metal resources have been upwardly revised, but from the iron and steel products downward, the downward revision has been made. But originally, the iron and steel products and lifestyle and innovation corporate development had been growing in your company, but by segment, how do you evaluate the progress in the medium term management plan goal? What is your concept that you had or image that you have? And second one about the energy. Well, as Konishi-san said, in the mid-term, how to increase the profit. That is a different perspective. If you look at the next fiscal year, what will be the factors for increase and decrease in the profits? ETF and also LNG spot prices are Now, increasing recently, so generally speaking, I think that would be the contributing factor for increased profit in the next fiscal year in your company. But what is your thoughts on that? And what about the impact from possible Trump tariff? Well, there are various factors in Trump tariff involved, but what I'd like to talk about is that Trump's tariff on the increase in tariff for Canada and Mexico, what would be the impact on energy business in your company if that happens? Thank you for the questions. Well, the INST products and lifestyle and innovation corporate development. So in terms of core operating cash flow, there was a downward revision and for because this is close to base profit. So in the lifestyle as mentioned and as explained, the coffee business in food is struggling and the turnaround of these businesses, we would like to hope to have a contribution that has been conventionally made and also wellness, hospital business, and other ones that will contribute to earning space. There is a steady progress made in those businesses. So we have to address turnaround properly. And as for iron and steel products, as you said, the trading is a focus and also investees business trading is the focal focus. central part of the business. So in this fiscal year, excessive production in China and exports outside of China has increased. And because of market price drop, the business has been and becoming sluggish in our company. And so supply-demand situation has to improve. That would be the requirement. So we are settling slightly in iron and steel products, honestly speaking. As for innovation and corporate development, so we have done downward revision this time, however, Next fiscal year, in the next medium-term management plan, there's no major factors of concern, even though we have done water revision. We are expecting solid progress. And the second question about energy, in the next fiscal year, The quantitative numbers are being built going forward, so there's no detailed numbers that's in my head right now. But for the next fiscal year, the performance that we have seen in this fiscal year is expected to be demonstrated, and we are hoping that that can be done. And as you know, recently, business for... Europe and Japan and Asia energy prices for those markets, because the coldness is severe in winter. So spot prices are increasing because of that. But these are for spot demand. So the winter until March this year, like winter business until March, has is now beginning to solidify its profits. And after April onwards, without taking excessive fluctuation risks, we how we can benefit from the sustained higher prices. So that is where our skills will come into play. So throughout the year, better environment than this fiscal year may not be true because depending on the month and market situations, it is too early to say that next fiscal year will be better. As for tariff, Mexico and Canada tariff, have actually impacted the fluctuations in crude oil prices. But natural gas and energy, rather than tariff, the deregulation trends is a tailwind for us, probably, so we have to take measures. uh to make sure that these will become a tailwind for us actually so that we can build up our profits so that's all thank you thank you well as for natural gas policy or deregulation of course from the midterm or well trump is quite quick so maybe there might be some profitability in this year but For Canada and Mexico, if tariffs are imposed, the natural gas and crude oil coming from Canada and Mexico will be decreased. So for for your company, that would be a positive factor. Is that true? Yes, your understanding is correct. Thank you.

Next question, please. Thank you very much for taking my question. I would like to ask two questions. My first question is about impairment of mainstream. Your initiatives on renewable energy, will it have a negative impact? When it comes to renewable energy, how you take risks, it will depend on the area where it is based and whether you will be able to get returns. So with the build and hold model work will be a question. So looking back, The weight on profit contribution or weight on asset, I'm sure you have been conscious of these two factors until now. But just looking at the scale of power generation, I don't think that can be the only indicator that we rely on. So would there be any impact on your future renewable energy project? That is my first question. And my second question, page 19 of the presentation material, you mentioned that there are no revisions made. Enhancement of base profit, the initiatives I am focusing on. And at the start of the MTMP, of course, FX, it was 130 yen to the dollar at the start. So about plus 50 billion to reach 170 billion. I think we should see more growth to reach that number, but coffee trading, the turnaround is not going well in such a business. Therefore, with this target of 178 billion yen, Are there enough menus so that we'll be able to reach that number next year? That is my question, just for confirmation purposes. Yes, as for your first question regarding mainstream, as I explained earlier, we will continue to work on turning around that business. and stop bleeding so that we'll be able to avoid any further losses. When it comes to renewable energy, of course, mainstream itself, we have made investments so that we can use it as a platform. And of course, when it comes to wind and solar energy, the renewable energy projects we are working on at the same time. But currently, when it comes to renewable energy, President Trump's perspective on renewable energy and the different countries and different regions, how they look at increases in construction cost and labor cost that leads to further increases in cost. These are the factors that make it difficult But decarbonization is what we are seeing, a transition period we are in. And the timeline compared to the original forecast, I think, has been prolonged somewhat. But decarbonization is something that we need to realize. And with that, with the energy transition, these are some initiatives that we need to complete and realize. So within a larger portfolio, natural gas and LNG in those existing businesses, we hope that we'll be able to support the energy transition in the mid to long term in a sustained manner. And that's for the enhancement of base profit. Yes, regarding foreign exchange, yes, I agree with you. But market and interest rate, they are different factors that are changing all the time. So we need to make sure that we achieve 170 billion yen. And this is what we are confirming with the different business functions so that we'll be able to deliver this target. That will be our priority. And we hope that we'll be able to see an upside to that target going forward. So we will continue to make efforts to that end and enhance the quality of our business. So in the three menus, when it comes to new businesses, the pipelines are very clear to see. So towards this 60 billion, do you think that this number is achievable? Yes, your understanding is correct. Thank you very much. Thank you very much. Next question.

Please. Thank you very much. Can you hear me? Yes. Thank you for the presentation. There's one question. With regard to LNG, the profit increase seems to be large. In slide 14, if you take a look at that, the cost and volume, cost declined, but volume seems to have increased. Can you explain more about this? At the end of December, maybe after Q3, the drain pipeline impact may have increased your handling and energy prices including Q3 and there is a delay in the recording or time delay. Is that the reason why energy has been increased? Well, IR head Kunishi will explain. With regard to energy volume, The first one is MEP-AU. It has been performing quite well. And Weishia gas field, the land onshore gas field is being developed and is going to be launched in June, but no shelf. liquefaction capacity is going to be utilized, but the increase in production waste here has not been done, but we will procure the gas in domestic market and then we are expecting this liquefied ones. And the Vincent oil field is also performing well. So those are the main factors we find increase in volume. And as we look at the cost, Generally speaking, the upstream business ENP business, partially development has been delayed. So exploration cost has been delayed in timing. And so exploration cost has been improving. And also Abu Dhabi, ADGAS, LNG, maybe this was mentioned already, but capacity, CAPEX plan had been made in recently, but it has been reconsidered and CAPEX has been declined. And so that would give us more funding for dividend. So that has been, Those are the main factors behind this. Thank you very much. So this base profit or LNG-rated base profit increased because of those factors that you just mentioned. Is that true? Well, in terms of volume, yes, that's right. Basically, those related to volume and cost, yes, this has been classified, but there might be some base profit, other factors, but as for LNG-related base profit, the main factor is trading profit and dividends, a combination of those two. And as you can see, the numbers, the relatively big dividend is incorporated or posted in the third quarter. And in the four-year forecast, in the fourth quarter, with regard to trading a profit, there is expectation that there is going to be quite a number of profit from trading. Thank you.

That is all the hands we see at the moment. Anybody else with a question? If they have a question, please click the raise hand button to let us know. Thank you very much for the question. Next question, please. Yes, I'd like to ask one question. This is a question regarding investment. On page eight, you said that you will be making efforts, continuous efforts to realize projects with a scarce, large-scale investment opportunity for growth, so leveraging years of experience and expertise. So can you explain further what you mean by this? Yes. As you can see on page eight, there are no other hints that we can give you regarding these opportunities for growth, but I hope that we will make more efforts going forward so that we'll be able to give you more information on a short term. Thank you. Any other questions?

No more questions. And it seems that there are no further questions. We'd like to conclude Q&A session, even though we're early a bit. But there's announcement of IR event. As you have received our email on March 14, Friday from four o'clock in the afternoon. Sustainability response to climate change and natural capital is going to be the topic of this IR event. And there will be online streaming. So I hope you can participate. And thank you very much for joining us today.