Mitsubishi Corp Ord

This is Masa speaking, CFO Masa speaking. Thank you very much, despite the busy schedule, for attending the results meeting for the three months ended in June 2021. I would like to give you an overview, and after that, our general manager of the corporate accounting department, Nanuchi, will give you more details. In terms of the fiscal year 2021 first quarter, consolidated net income compared to the previous year, it has gone up by 150.9 billion yen to 187.6 billion yen. Against the outlook of 380 billion, the progress ratio is 49%. Then please go to page one of the presentation material. In terms of the year-over-year fluctuation, I would like to first explain that, so please look at the box on the lower left-hand side. All of the eight groups have shown an increase of profit. We saw a decline in profit for the power solution group and the industrial infrastructure group, but this is due to the timing of the SSL and in terms of the litigation-related loss of Chiyoda Kakuo. So these are special factors. Last year, we saw a plunge in the resource prices and we saw a contraction of the demand for the automotive sector. And last year was when the COVID-19 hit us very hardly. but through the recovery of the economic activity worldwide, and we saw a demand of recovery in automotive-related business. And the resource prices have gone up, such as copper and iron ore. And we have been able to lead this to a steady earnings from each of the businesses through this business environment recovery. In terms of the first quarter income year over year, it has gone up by 150.9 billion yen. So we have seen a substantial increase. Going into the outlook for our performance, please look at the box on the over right-hand side, the progress against the forecast. So in terms of the orange bar, this is the mineral resources segment. Due to the impact of the planned maintenance as the plan includes Australian metallurgical coal, and in terms of increased prices for the copper and iron ore, And as a plan, in the first place, the profit should be concentrated in the first quarter. And on top of that, we have run off gains due to disposal with aluminum smelting business. In terms of the progress, it was high, 82%. On the green bar, which is a non-resource business, we have been able to tap into the global demand recovery, and we have been able to book and analyze gains for the funds, and we have been able to see increased opportunities in trading. So the progress has been over 40%. As a result, against the four-year outlook, the progress ratio has been 49%, and this is at a high level. As you can see, this times the results. Compared to the last year, which was only impacted COVID-19, we're seeing a substantial increase of profit. Although there is some concentration in where the profit is coming from in terms of the first quarter profit, it's the second highest following the 2018 first quarter, which was the highest in VR history. we have been able to leverage the business environment improvement to strong recovery of our earnings. For the full year, there is a high possibility that we'll be able to exceed our outlook that we have disclosed in May. However, there has been a resurgence of COVID in Southeast Asia, and we have to observe how the resource crisis will trend, which is at a higher level. But towards the second quarter, we will continue to observe the situation carefully and decide accordingly. towards the improvement of our performance in terms of the withdrawal of the unprofitable business, the reshuffling of our asset portfolio, and we will go accumulate profit from our existing investments. We will go about implementing these initiatives one by one. So that has been the overall situation. Going to the overall segment situation, General Manager of Corporate Accounting Department, General Manager Mr. Nowitzki will speak.

So this is Nowitzki speaking from the Corporate Accounting Department, General Manager. So I would like to add on to the just-made presentation. I would now like to look at the Q1 segment results, so please refer to page 2 of the material. I would like to start off with natural gas. 7.2 billion last year, re-increased by 11.3 billion, landing at 18.5 billion yen for the first quarter. This is because of LNG-related business earned dividends, as well as North America's shale gas business. Moving on to industrial materials, iron ore business improved. Moving down to mineral resources, the dividend income increased, copper business and earnings improved, and the aluminum smelting business won off gains. It gave us versus 20 billion last year, increased by 45.9 billion, landing at 65.9 billion yen for the first quarter. Moving on to the right side of the same material. Last year, the Mitsubishi Motors one-off losses were acknowledged, but because of this, Mitsubishi Motors, as well as the Asian automotive business, we saw an increase in equity earnings and automotive mobility all in all, Last year was 22.7 billion negative. We increased by 50 billion yen, landing at 27.3 billion yen positive for Q1. Moving on to food industry. 6.5 billion last year. We increased by 13.2 billion, and landed to 19.7 billion yen for the first quarter. This was due to the improvement in equity earnings for our salmon farming business. And for consumer industry versus last year, we have been able to improve our equity earnings. I would now like to move on to power solution. From 6.7 billion last year, we dropped by 10 billion, so this is a 3.3 billion minus. So disposal gains of power generating assets have decreased, as well as overseas power businesses dropped as well. And lastly, I would like to touch upon urban development. 600 million was last year's number. We increased by 21.1 billion, landing at 21.7 billion yen for the first quarter. This is due to the valuation profits as well as lease business integrated merge gains. Allow me to move on to page three. I would like to depict the situation over cash flow. On the bar chart, please refer to the first three months cash flow. The gray, which is operating cash flow, is 238.6 billion yen. And the orange, investment cash flows, 79.3 billion yen cash out. So when we augment these numbers, the adjusted free cash flows is 159.3 billion yen. Now the breakdown of investments, if you can refer to the orange box in the middle of the same slide. Australian metallurgical coal business, as well as copper business and LNG-related business, so investments in such projects as well as leasing business, equity investments, all in all amounted to 170 billion yen. For sales and collection, North American real estate business, as well as the shale gas business in North America, resulted in 90.7 billion yen and net 79.3 billion yen. On page 4, on the 7th of May, when we announced our outlook, I am once again attaching the same market conditions as referenced. So this will conclude my presentation.