Mitsubishi Corp Ord

I am Naka Nishi, the President's CEO. Thank you very much for attending our FY2025 earnings briefing today, despite your busy schedules. First, I would like to go over the highlights of our financial results. Please refer in terms of the financial results. The underlying operating cash flow was 1.0481 trillion yen, and consolidated net income was 800.5 billion yen. Through our initiatives to enhance and reshape across each business, we have steadily accumulated profits, coupled with the impact of a market upswing toward the end of the fiscal year. Those figures significantly exceeded our full-year forecasts. Moving on to the FY2026 forecast, as explained recently, Driven by the growth of our normalized profit, including the start of earnings contribution from our U.S. shale gas business, as well as sizable asset and business recycling-related gains, we forecast an underlying operating cash flow of 1.25 trillion yen and a consolidated net income of 1.1 trillion yen. Given the increasing predictability of our higher profit levels, we will maintain our progressive dividend policy and increase the dividend by 15 yen compared to FY2025, bringing it to 125 yen per share. Next, regarding the progress of our corporate strategy, FY2027, against our total profit growth plan of 400 billion yen or higher, driven by initiatives to enhance, reshape, and create, we consider our progress to be generally well on track. For our enhance and reshape initiatives of 300 billion yen or more, please refer to the slide. As for initiatives to create, that is, 100 billion yen or more in the U.S. shale gas business, we anticipate a profit increase of 60 billion yen predicated on a 25% stake sale to the founding family to enhance operational stability. We are also exploring a gas value chain concept originating from this business to drive further profit growth. Although the uncertain environment continues. We will keep driving our value creation mechanism, powered by our integrated strengths. We will sorely strengthen the earning space of existing businesses and aggressively pursue gross investments in new businesses, leveraging our broad industrial footprint, aiming to achieve the quantitative targets of our corporate strategy 2027. This concludes my initial explanation. Next, CFO Shimazu will provide a summary of the financial results.

My name is Shimazu, CFO. I would like to provide a brief overview of our financial results and an update on the progress of Corporate Strategy 2027. Please turn to page 5. In FY 2025, although we experienced a negative rebound from the capital recycling recording in the previous fiscal year, each business steadily accumulated earnings. As a result, both operating cash flow and consolidated net profit exceeded our expectations. For FY2026, we expect profit growth driven by initiatives under our Enhance, Reshape and Create strategy, including our entry into the U.S. shale gas business and the full-year operation of LNG Canada. In addition, we expect gains from large-scale sales and evaluations across several projects. As a result, we project an increase of approximately 200 billion yen in operating cash flow and 300 billion yen in consolidated net profit. Next, I would like to add two comments on the progress of Corporate Strategy 2027. Please go to page 6. First, let me explain the latest outlook for our capital allocation plan under Corporate Strategy 2027. Given the solid trend of operating cash flow and the faster recovery of investments, as well as the ongoing investment pipeline and dividend expansion, we have raised both cash in and cash out by 0.7 trillion yen, respectively. We will continue to strengthen cash-in and utilize leverage. Additional allocation capacity will be flexibly directed to growth investments and shareholder returns as we pursue both growth and efficiency. Please turn to page 14. For the profit growth plan under enhance and reshape through FY2027, we made partial revisions in reinforcing the earning space based on the latest business environment. At the same time, reflecting strong progress in asset turnover type businesses under executed projects, we continue to plan for a 300 billion yen profit growth. Plans and progress under executed projects, rebound of core businesses and reinforcing the earning space are shown on page 15 and 16 with key initiatives of major categories. We will steadily execute these initiatives to achieve our 300 billion yen profit growth target. Cash flow results and segment performance shown on pages 7 through 12 for your reference. This concludes my explanation. Thank you very much.