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.