Mitsui & Co Ltd Ord

Welcome. We'll now begin the briefing of the financial results of the first quarter of the fiscal year ending March 31, 2026 of Mitsui & Co. Ltd. Thank you very much for taking time out of your busy schedule to join us today. Today's briefing will be a combination of Zoom webinar and online presentation for institutional investors and analysts. And Tetsuo Shigeta, CFO, and Masao Kurihara, General Manager of the Global Controller Division, will give a 10-minute presentation, and then we will answer the questions from the audience. And the presentation part will be live-streamed for individual investors to be able to watch on a real-time basis. Now please refrain from reproducing or diverting all or part of today's materials without permission. Today's meeting will be recorded and made available on demand on Mitsui's website on a later date. I would now like to introduce today's presenters. Tetsuya Shigeta, Senior Executive Managing Officer and CFO. Masao Kurihara, Managing Officer and General Manager of Global Control Division. And myself, Konishi, of the Investor Relations Department, will be the moderator. Now, I'd like to begin the presentation. Over to you, Mr. Shigeta.

Good afternoon. I am Tetsuya Shigeta, CFO. Thank you for joining us today. I will begin by giving a summary of the F5 March 2026 first quarter operating results. I will then hand over to Masao Kurihara, General Manager of the Global Controller Division, who will speak on the details of our operating results. Summarizing our operating results for the quarter, Core Operating Cash Flow, or COCF, increased by 0.5 billion yen year-on-year to 216.3 billion yen as we made solid progress against the business plan. Profit declined by 84.5 billion yen year-on-year to 191.6 billion yen, mainly due to the absence of gains from asset sales recorded in Q1 of the previous fiscal year. Progress is in line with the business plan at 25%. This slide shows the progress of each segment against a business plan. CoCF is showing good progress across the board. Progress of profit varies by segment, but overall, we are on track. Mainly due to seasonal factors, full-fledged contribution from the energy and innovation and corporate development segments are expected from Q2 onwards. Regarding our cash flow allocation, Cash inflows totaled 270 billion yen, with 216 billion yen from COCF and 54 billion yen from asset recycling. For cash outflows, investments and loans totaled 208 billion yen. Key investments and loans included ITC Antwerp, a European tank terminal business, which became a wholly-owned subsidiary, and we also started investing in Bluepoint, the low-carbon ammonia project. We will continue to steadily execute investments for growth and asset recycling in line with the Medium-Term Management Plan, or MTMP.

Since the start of the current MTMP in FY March 2024, we have executed multiple investments for growth across our three key strategic initiatives of industrial business solutions, global energy transition, and wellness ecosystem creation. Some of these projects have already begun contributing to earnings, helping to raise our base profit. Furthermore, investments for growth, which fortify our long-term earning space, are also progressing steadily. or excuse me, entering FY March 2026, we executed and made investment decisions in areas in which we have deep expertise, including making ITC Antwerp a subsidiary, a business expansion via an additional investment in Wills, Mitsui & Co. engine support, an aircraft engine-related business, and began our investment in the Ruweis LNG project. We'll continue to steadily build up carefully selected investments aligned with our key strategic initiatives. There is no change to our shareholder returns policy since the FI March 2025 full-year financial results announcement. We will continue to consider enhancing shareholder returns while maintaining a balance with investments for growth. That concludes my part of the presentation. I will now hand over to the General Manager of the Global Controller Division, Masao Kurihara, for details of the financial results for the quarter.

I am Masao Kurihara, General Manager of the Global Controller Division. I will speak on details of the operating results. COCF for the quarter increased by 0.5 billion yen year-on-year to 216.3 billion yen. In the mineral and metal resources segment, there was a decrease of 16.3 billion yen to 71.9 billion yen mainly due to lower iron ore and metallurgical coal prices. In the energy segment, despite the higher gas prices, there was a decrease of 7 billion yen to 45.7 billion yen, mainly due to a decrease in production volume. In the machinery and infrastructure segment, there was an increase of 11.7 billion yen to 36.1 billion yen, mainly due to the absence of taxes from asset sales in the previous period. In the chemical segment, there was an increase of 7.5 billion yen to 32.7 billion yen, mainly due to a gain on the reversal of a provision related to a business outside Japan and higher demand in Europe for crop protection. In the iron and steel products segment, there was an increase of ¥4.3 billion to ¥6.3 billion, mainly due to trading and dividends from equity method investees. In the lifestyle segment, there was a decrease of ¥8 billion, resulting in an expenditure of ¥1 billion, mainly due to an inter-segment transaction with others, adjustment and eliminations. In the innovation and corporate development segment, there was an increase of 4.6 billion yen to 12.1 billion yen, mainly due to an increase in dividends from JA Mitsui Leasing. In others, adjustments and eliminations, there was an inter-segment transaction with a large-sized segment, mainly due to this, and other expenses, interest taxes, etc., are not allocated to business segments, COCF total 12.5 billion yen.

Profit for the quarter decreased by 84.5 billion yen year-on-year to 191.6 billion yen. In the mineral and metal resources segment, there was a decrease of 29 billion yen. to 51.5 billion yen mainly due to lower iron ore and metallurgical coal prices. In the energy segment, despite higher gas prices, there was a decrease of 0.3 billion yen to 18.9 billion yen mainly due to a decrease in production volume. In the machinery and infrastructure segment, there was a decrease of 75.3 billion yen to 50.7 billion yen, mainly due to the absence of asset sales in the previous period. In the chemical segment, there was an increase of 12.7 billion yen to 30.9 billion yen, mainly due to a valuation gain on ITC artwork. In the iron and steel product segment, there was an increase of 0.5 billion yen to 6.5 billion yen. In the lifestyle segment, there was an increase of 0.8 billion yen to 14.8 billion yen. In the innovation and corporate development segment, there was an increase of 4.1 billion yen to 10.3 billion yen, mainly due to higher profit at JA Mitsui Leasing. Others' adjustments and eliminations recorded 8 billion yen due to expenses, interest, taxes, etc., not allocated to business segments. This page provides a summary of year-on-year factor comparison. Base profit increased by 10 billion yen. This was mainly due to core businesses in the chemical segment, LNG-related businesses, affiliated companies in the innovation and corporate development segment, and other factors, while there was lower profit from SHIB's subsidiaries. Resources cost volume decreased by 17 billion yen, mainly due to higher costs and lower volumes, in copper and lower volumes in energy. Commodity prices decreased by 5 billion yen, while oil and gas contributed to a 10 billion yen increase, iron ore and metallurgical coal decreased by 15 billion yen, and forex decreased by 15 billion yen, mainly due to a stronger yen. As a result, commodity prices and forex decreased by 20 billion yen. Asset recycling decreased by 72 billion yen, mainly due to the absence of gains in the previous period. Valuation gains, losses, and one-time factors increased by 15 billion yen, mainly due to the valuation gain on ITC AdWord. Finally, I will speak on the balance sheet as of the end of this quarter. Net interest-bearing debt increased by 0.1 trillion yen to 3.4 trillion yen. Shareholder equity increased by 0.1 trillion yen to 7.6 trillion yen. As a result, net DE ratio is 0.45 times. That concludes my explanation.

That is all for the presentation. Now we'd like to entertain questions. If you have a question via Zoom, please click the raise hand button at the bottom of the screen. We will read out your name and then please unmute yourself and ask your questions. Please ask two questions at a time. You may raise your hand repeatedly, but because of time constraints, we may limit the number of people who may ask questions. Please ask your question. Please raise your hand if you have a question. Thank you very much for the explanation. I would like to ask two questions, please. My first question on page 12. In this chart, the base profit, There are four, chemicals, energy-related, innovation, and corporate development, and food. These were the four factors for the increase in the base profit. How are they related, and will they be sustainable into the second quarter? That is my first question. And my second question, going to page six about cash flow allocation. About investment, sustaining CapEx and gross investment, they are totaled together and on the very left-hand side for the MTMP three-year forecast. And if we subtract the two-year numbers, of course, the plan has not been announced. However, it will be 1.2 trillion yen. And Rose Ridge. Of course, there will be FX valuation, but it will be about 800 billion yen this year. And sustaining capex, if it's about 50 billion, it will be 200 billion. So together, it will come to 1 trillion yen. Please let me know if my calculation is incorrect. And if you subtract that in the gross investment, it would be about $200 billion. In the first quarter, it was $160 billion. So just comparing the two, investment into growth, what will happen going forward? I think the investment may be tighter going forward. And how will you be using the management allocation going forward? Because it may be impacted. So your ideas on investment going forward and how you'll be using the management allocation going forward, that is what I'd like to know. Thank you very much. Thank you very much for your question. First of all, on the year-on-year factor comparison about the base profit on page 12, chemicals, yes, it was very strong overall, especially overseas agricultural chemicals business and of course IDC US tank business was also strong. So extending from the existing business and operation, we had seen upward momentum and that is included. So whether we'll be able to times it by four going forward, that will be difficult to say, but we would like to extend this further as increase in profit. As for LNG related, this is for volume and also for dividends. But compared to the year before, so every quarter from first to the fourth quarter, the allocation when it comes to especially trading, I think it would be more weighted on the second quarter, but in the first quarter we were able to see increase here. And as for innovation and corporate development, the factors within the number is J.Mitsui Leasing, the performance was strong, and of course commodity, the derivatives trading was very good because it was able to make profits and was able to capture that opportunity. So It will depend on the market trend going forward, and it will depend on the volatility of the market going forward, but we will make it more safer so that we'll be able to increase profit going forward. And as for food, there was some accumulation of smaller projects, especially coffee trading, compared to the previous year, showed improvement. And this base profit and also In relevance to this year-on-year factor comparison, some say that it is very difficult to understand. However, we are working on the base profit enhancement and we are seeing very good responses so far. So as for numbers, it may not be matching each other. However, this Upside, all the base profit is what we'd like to capture going forward so that we'll be able to expand the profit going forward and work on the turnarounds, etc. And as for cash flow allocation, after the first quarter, we are finding to see the trend for the year. but selection of the gross investment is something that we're working on and our pipeline is becoming rich. So within the management allocation, for example, Rose Ridge was announced and at that time management allocation addition was explained and this allocation We believe balance will be important going forward, and we think and we are confident that we'll be able to make a good balance with management allocation and we'll have a good framework almost. So returns and investment for growth, this is something that we want to certify going into the second half. Thank you very much for your answer. Thank you very much.

Thank you. I'd like to move to the next question. Thank you very much. I have two questions. The first question, I think I'm asking this every time, but as for energy, in your presentation you said that for the longer term the dividend and trading will be skewed. as usual. But you are saying that you are making steady progress, but in the first quarter, cost has not that much increased or gas price was declined. So there was a change. So at the moment, If there is any change from your view at the beginning of this fiscal year, if there is any, please share that with us today. And then the second question, as for the overall business, based on your conventional presentation, there is some conservative view because of tariff impact, possibly. That's what you said. But in the first quarter, I don't know if there was any impact. But compared to your view at the beginning of the fiscal year, is there any change like you don't have to be that much conservative? If there is any change that you have seen from the view that you had at the beginning of the fiscal year, please share that with us. As for the first question, as for energy, well, in the first quarter, after the three months was passed, For the four-year estimate, we are ahead of the plan. There is going to be contribution expansion more than the plan. And in the Full year forecast, when we make announcements for the second quarter, we are hoping to explicitly announce the numbers for upside. But as for the first quarter, we are making a head start, as we said. But a full year contribution expansion is what we are expecting. And as for the overall business, conservatism has been incorporated. So there are two specific items. The U.S. tariff, well, in terms of direct impact, there could be a cost increase and indirectly, the U.S. economy downturn and the global economic downturn that has been affected by the U.S. sluggishness. So based on that, we are conservatively building up our numbers. So that's one factor. And the other is that Usually, we believe that there is a reconfiguration of assets as usual and recycling gain incorporated at the time of making plans. there was an increase in uncertainty at the time of making plans. So that gain, possible gain that has been incorporated in the plan has been a bit conservative. And in the first quarter, so the first item, the US tariff impact, if you look at that, there has not been any direct or much direct impact. that we have observed. But on the other hand, if you just look at the first quarter alone, it turned out that the inventory that has been already existent in some businesses has been increased or some last minute demand that we've seen. So it is very difficult to make judgment based on only three months of first quarter. Well, the tariff agreement has been reached in various countries or regions, so manufacturers and suppliers' responses have been now made more clear. Therefore, in the second quarter, we like to closely watch continuously and then make some decisions if we can. And for example, in U.S. auto business, new vehicles sales Downturn is now beginning to be concerned in the dealer business, but in each of the businesses, In the U.S. auto dealer business portfolio, the maintenance services or leasing, there are different segments. And if new vehicle sales downtown is prolonged, then the used vehicle sales could increase. So there is a diversified business portfolio. this impact could be partially or fully offset by other businesses. So we are trying not to be too conservative. But as for the second item being still sitting back and watch, well, inflation and also interest rate hike in the U.S. there could be still uncertainty which has yet to be dispersed. We are still a long way from that. So the stakeholders in each of the areas are still keeping the attitude of closely watching how things will play out. So we shouldn't be in a rush to miss the opportunity. So in this fiscal year, additional capital gain Whether it can be estimated or incorporated, that has yet to be decided and we have to judge in the second quarter. And if there is any signs, then we would like to incorporate that within this fiscal year. But we would like to continue to be careful. Well, thank you. As for the first energy question, you are expecting upside. So the trading, the dividends, which specific areas are you expecting upside as far as you can share with us? What are you feeling? Well, mainly LNG projects and trading. But in the first quarter, ENP business in the U.S., LNG gas project, they have been quite strong. So operation has to be maintained or high rate of operation has to be maintained. And by doing so, we can increase the volume and prices times volume could enhance the revenue, and we can expect upside in the E&P. So overall, things are not that bad, and we are hoping to maintain that status for the full year. Thank you.

Next question, please. Can you hear me? Yes, we can. Thank you very much for taking my question. I'd like to ask two questions. My first question, I'd like to ask additionally on energy. In the first quarter, you were able to exceed the plan, so it is doing very well. And you talked about interest, project and trade, and of course Shell, they are doing very well. Make USA. on page 38, you're looking at different individual companies and the first quarter, their profit is more than the full-year profit from the previous year. Henley Hub, that is not going up very significantly, but what was the background reasons for this improvement in profit and what is the outlook from the second quarter onwards? That is my first question. My second question about the whole company, There is strengths and weaknesses in different segments. How do you evaluate that in the first quarter? Energy is exceeding the plan, but machinery infrastructure also seems to be very strong. And still, of course, it seems very strong as well. So what is the evaluation in those different segments? Thank you. Thank you very much. MEPI-USA Shell. I would like to ask the IR manager to add some comments. This Henry Hab, this is the northern part, so this is for New York. This is natural gas, and Marsalis is the area in which the development is ongoing. So, market is different from Henry Hab, so the price is different. In the first quarter, we are working on phasing. So January to March, in the winter, it was very strong as a market. And I'd like to ask the IR manager to add some comments later. But as a whole, each segment, the base profit enhancement that we're working on in the MTMP is showing progress. And we are seeing profitability, its earnings power being enhanced as well. Excluding runtime factors, just looking at the first quarter, chemicals and also iron and steel products were very strong. Looking to accomplish the annual business plan, It is not as if we don't have any concerns. It's not as if there are any special factors, but we would like to accumulate each profit opportunities. We want to capture all the opportunities. This is a stretch of plan and we are confident to achieving it and we may exceed the plan numbers, but this is a challenging stretch of plan and We have made that evaluation and the same for innovation and corporate development. We believe the plan is achievable, but this is a stretch plan, therefore. And also for lifestyle and also with innovation and corporate development, we would like to make sure that we capture all the opportunities. So we would like to be able to achieve the plan throughout the year without becoming lax. And in the final year of the MTMP, that will be the level that we'll be going for. And we still have that flag within the company as a target going forward. So we would like to continue to make efforts so we'll be able to come close to that target. And going back to your first question, I'd like to make some additional comments. As for the selling price, as Mr. Shigeta mentioned, January to March, the real terms will be phased and it will be recorded in April to June. So higher gas prices, during the winter months are shown in the first quarter and year on year we are seeing improvement in the gas prices and when it comes to cost especially in merciless production the productivity is quite high and that is maintained so the unit price it is improving every quarter, and we are seeing cost improvement as well. This may be related to the question asked by the previous investor, but as was mentioned earlier, in the annual basis, 25 billion energy cost reduction is seen. In the first quarter, it remained at 1 billion yen. So are there any positive factors? Is there an upside? I think that was what the question asked. And Marsala's productivity improvement has led to cost reduction, partly. And at the beginning of the year, increasing cost, one of the factors, was with the operation start. And with that, OPEX was added on. And that was one of the factors, and that was not shown in the first quarter, and that will start to appear in the second quarter onwards. That is my comment. Thank you very much. This is Shigeta once again. By segment, in order to achieve the targets, of course, we're not saying that there are no concerns. However, at the beginning of the year, We had PAT of 770 billion and we believe that this number is achievable and we must achieve this number but we are aiming to achieve the MTMP final year target. We are not showing any numbers but I'm sorry, but we are looking to achieve as much as possible going forward. So what you are saying is that this $770 billion is a target, but you have a higher target, and especially in lifestyle or innovation and corporate development or energy, you have a higher ambitious target. So for that... ambitious target, you will continue to work hard in order to achieve that higher target. Is that what you're trying to say? Yes, your interpretation is correct. Thank you very much. Thank you very much.

Next question, please. Thank you very much. I have the first question just for clarification. Cash allocation. The road switch, in particular, has been worked on for an extended period of time. And one-time investment amount is huge, and you are relying on bank loans as well. And the cost in relation to that has been incorporated in this fiscal year in your plan. But in your presentation, you said that in a three-year framework, this will be digested and management allocation should be starting to be finalized. That's what you said. So there is only a small period of time left for the MTMP. But do you think that you can manage within this fixed framework without having any special treatment? but or in going future strategies, industrial business and energy transition, you are going to seed, sow the seeds for the future growth. So I'm just asking whether you are going to set aside some special framework or are you going to be able to flexibly manage in terms of management allocation? The first, the second question, Last year, there was some impairment loss in the renewable energy in the mainstream business. So in the first quarter, the numbers have not been improved. That's my impression. So what is your future outlook for this mainstream for the recovery as well? If you can explain that, that would be appreciated. For the first question, first of all, for the management allocation, in March this year, Rose Ridge business explanation was given, and at that time, the management allocation or balance sheet will be utilized to have additional 400 billion yen So right before that, there was a net zero estimate for cash in and out. So at that time, there were five more quarters left and we wanted to have some flexibility and to have more options for business management. And based on that decision, we have injected 400 billion yen. So there is no total. for in and out, but 400 billion yen more in ad flow. But 800 billion yen in full amount it has not been set aside. So what was set aside? Rose Ridge is not explicitly set aside, but for this three-year period of MTMP, so it's not necessarily the case that in the previous MTMP there was some net extra in flow and cash outflow, but it is very difficult to manage exactly in three years. So there could be some positives and negatives that we cannot avoid. And then 400 billion yen approximately has been used from the balance sheet. So I'm not sure if I understood your definition of setting aside from the framework. So rose-rich investment has not been fully set aside from the normal framework. but we wanted to maintain some business discretion. So there was additional 400 billion yen. So 400 billion yen outflow on a net basis. That was what we figured. And so the remaining nine months, we believe that we can manage and we are hoping to be able to do so. Of course, if things change, then we have to revisit this and there could be some various possibilities. And the fiscal position has been maintained in a sound status. But basically, we are hoping to maintain this status. But as for the mainstream, we have been struggling significantly, and we may have cause concern. So in the renewable energy platform, we are working on this project. And a more recent global attitude for renewable energy, if you look at that, things have been slowing down. So there has been headwind for us. So that's what we are facing. So we would like to continue to work with partners so that we can narrow down the focus areas so that we can be successful in turnaround. So this is going to be the focal project for us. Thank you.

Thank you very much for your presentation. I would like to ask two questions. My first question. About the first quarter, metallurgical core business, it was a loss in the first quarter. Why and why? The cost is improving, the volume is going down, and the market may be the declining factor. But with this market, it will go into a loss. Is that the situation? I'd like to know the background factors. The second question about food, about coffee trading, In the fourth quarter, it was a loss. But in the first quarter, that issue has been solved. And will there be no concerns going forward regarding this trading? That is my second question. Thank you very much. The first question, I would like to ask the IRM manager to give some additional comments if needed. But for this fiscal year currently, part of the operation is being suspended and of course there may be some areas in which coal mining may be difficult. So volume and the cost increase per unit is what we are facing at the moment. Therefore, it was negative as a whole. And as for the coffee trading, your second question, a year or a quarter on quarter we are seeing improvement significantly and this is because their coffee market it went up to about 400 cents but in the second quarter it has gone down and it is less than 300 cents at the moment but the shrinkage of the position, in other words, sorry, I'll take it back, there are some limitations, and of course, with the residual contract, there is some contraction, and we are in the midst of making improvements. So, we would like to make sure that we can secure a position that will not impact profitability. And we're trying to come up with measures. However, it is still very unstable, and that has not changed. Of course, we are seeing improvement, but it is not as safe. We can say for sure that will be making losses going forward. It will take time for us to reach that stage. As for your first question, Mr. Shigeta has said everything that needs to be said, but currently two coal mines are being suspended, so we do have fixed costs. However, we are not gaining anything from that operation. And I think that is the current situation and we are facing challenges. Thank you. Thank you very much for the explanation. Thank you. Thank you. Next question.

Please. Thank you very much. I have two questions. First one. There is no disclosure, but the iron ore price, supply-demand balance, and cost. In terms of these, what is your expectation for the market? situation if you can comment on that and second question IHH in the first quarter has seen decline in profit so what is the background behind that and what is your future outlook for this business thank you for the questions for the first question I like to ask Konishi to answer the question. And for the second question on IHH, on the year-end basis, there was one time factor and also in this quarter, in terms of operation, there was some utilization rate that has declined slightly. But overall, the hospital business itself, the number of beds is now being increased and M&As have been utilized to increase the number of beds. That's what we're working on and things are going steadily and making progress. And as for business expansion, we are still making progress. But there was some one-time factor in the previous fiscal year. And so on a year-on-year basis, there was a decline. But this is one of the existing business pillars. We are behind the curve. future growth and supporting the future growth. As for iron ore prices, well, it is close to a hundred dollars. It has been recovered. It has Exceeding the $100 and then went down. So there's back and forth. But cost curve and if you look at demand and supply and demand, I think there could be solid market prices. Unless there's major stimulus package from China, upside might be limited, but we are expecting solid price. M&A is something that we are asked about. In the public information, the shipment is going to be started by the end of this year, about 1 million and then ramped up for the next three months. But what will be the speed of ramping up that will be executed? That is going to be the key impact on our business. But in the cost curve, if you look at the Chinese domestic mine price, then we don't expect any major drop in prices. As for the second question for IHH, let me make some additional comments. In the first quarter of last year, in the Turkey hospital business, there was some deferred tax assets posted. So there was an absence of that this fiscal year, so there was a decline. But on an up-to-date basis, we are in line with the plan. Thank you. Thank you very much.

Thank you very much. I would like to ask one question. This is on page 7, about the Taiwan wind power. Can you talk about how it is starting up? And in Niigata, this was a gross factor, but I believe there were some revisions made, And yesterday in England, this wind power generation, there was news of acquisition with renewable energy. I believe there may be some difficulties, but can you talk about some of the background factors that may affect this business? About Taiwan, about the offshore wind power business, the construction is ongoing steadily. In the two sections, 73 are to be started up, and by the end of June, five wind turbines have started commercial operation, and By the end of the year, 37 turbines in one of the zones will start commercial operation as planned and there will be contribution to profit starting in FY25. And in the other zone, we are starting commercialization starting next fiscal year. And for domestic operation, we would like to see investment decision made and we are continuing the negotiation with our partners and stakeholders. The construction cost is going up and with FX impact, of course, we are facing difficulties and we are going to go for economicality as well. Of course, the situation is challenging, but we hope to be able to reach a decision to invest, and we would like to continue with our negotiations. And in Europe, the wind power business and the acquisition of the port required for maintenance is what is necessary. So this is going to be a mid-term effort because this is going to be a long-term operation business. And when it comes to renewable energy within the value chain, where we need to make the move is going to be very important. Of course, the duration plant, we are working on that as well. And with iron and steel products, of course, this kind of turbine material, in other words, raw material acquisition is something that we are involved in as well. But we need to work on maintenance support that will be necessary. And in Europe, which is a maker of wind power, operation we would like to accumulate experience and in the mid to long term we would like to work on this operation. We are working on decarbonization and that effort may be gaining less speed but this is something that we need to work on and we believe there is a consensus to work on renewable energy so we would like to work on it on the mid to long term. And of course for wind power, there are different usages that can be considered. So oil and gas business support is offered by different sections. Slowdown may be seen in offshore wind power, but in other businesses, we may be able to offer services and by doing so, we think we'll be able to guarantee its feasibility. Thank you very much.

Thank you. Next question, please. Thank you very much. I have one question. On page 5, co-operating cash flow progress has been summarized in this table. So I'd like to have some clarification. For energy, earlier there were various explanations. So you're going to build up profits going forward. So if you do this, then co-operating cash flow will be linearly built up. Is that a correct understanding? And also, for other segments, the progress rate seems to be varied. So if there are any segments that are more positive than expected or negative than expected, and if you can share that with us with some reasons, that would be appreciated. If I can give you the overview and then ask Kurita to follow. As for lifestyle, there's minus number, negative number. So the project, the headquarters loans to the projects, the interest rate has been paid in a lump sum manner. So there's a special factor. So there's no... impact on the overall total, but there was some numbers that are going back and forth between the different segments. So I think there is going to be a steady progress overall. We haven't included this in the presentation, but in around June, there will be some money paid as dividend, but that has been postponed to early July. So there was some time shift in terms of payment. So especially for cooperative cash flow, given that for the full year, we are making steady progress and we may be able to seek some upside. That's where we are. So let me explain more on that. As for energy, you asked the question, so like in profits for this fiscal year in the towards the second half, it is expected to increase. So in terms of progress rate, it's 21%. But as we go along in the fiscal year, as we approach the end of this fiscal year, the city progress will be made and there will be some upside. And machinery and infrastructure, there's some time shift or time lag. So the progress rate is good and we are going to be in line or ahead of the plan. And for the rest, we will be in line with the plan or ahead of the plan. Thank you. Understood. Thank you. Thank you.

We are very close to the ending time, so the next question will be the last question. If you have a question, please click, raise my hand. No questions? If there are no additional questions, with that, we'd like to end the Q&A session. So I'd like to talk about the ILO event. December 4th on Thursday in the afternoon, we would like to have the Investor Day 2025. The details will be announced as we make decisions going forward. With that, we'd like to end this conference call. Thank you very much for your attendance despite your busy schedule. Thank you.