Canadian National Railway Company

Thank you for joining this telephone conference of Oryx Corporation for first quarter financial results for this. three-month period ended June 30th, 2025. I am Nakane from IR. We have today, as an attendee, Ikazuki Yamamoto, operating officer in charge of investor relations. Yamamoto-san will explain, and this will be followed by Q&A. We plan to have a one-hour session, so over to you, Yamamoto-san. Thank you very much for taking the time to attend the Oryx Group's earnings call today. I'm operating officer in charge of corporate planning and IR. I am Kazuki Yamamoto. Let me quickly explain the financial results for the first quarter of fiscal year ending March 2026. On page 2, you can see this page contains the key points I want to cover today. The first point is net income and ROE. Net income for the first quarter was 107.3 billion yen, an increase of 20.6 billion year-on-year, with an annualized ROE of 10.4. Against the annual forecast, 380 billion, progress rate was 28.2%. As was announced in July, we plan to record gains from the sale of Greenco and Oryx Asset Management and Loan Services Corporation in the second quarter, and earnings are favorable. Meanwhile, considering the increasing macroeconomic uncertainty, it is necessary to carefully review our planned H2 exits and second half performance in line with the market. While we expect earnings to be more heavily skewed to H2, we are currently undertaking a thorough review of full-year net income target. Second is pre-tax profit and capital recycling. Pre-tax profit was ¥155.5 billion, An increase of 35.3 billion from last year. Finance, operation and investments in all three categories saw profit increases year on year.

Investments.

including the hotel universal port vita and other valuation gains from listed stocks recorded total capital gain of 45.1 billion yen from multiple gains on exits number three shareholder returns As of the end of July, we have completed the acquisition of 40.9 billion out of total 100 billion share buyback program announced in May this year. We will continue to repurchase shares based on the existing program and aim to flexibly implement our shareholder return policy. based on both our full year outlook and progress with new investments. As in the previous fiscal year, our current policy is to set the interim DPS at a payout ratio of 39% in first half net income. Please go to the next page. As outlined earlier, for Q1, Oryx reported net income of 107.3 billion, up 24%. ROE was 10.4% annualized. In light of the investment gains we expect to book in Q2, the outlook for first half is very strong. Please go to page 4. I'll explain pre-tax profits for each of the categories. Three categories, finance, operation and investments. You can see first quarter results of the previous and current fiscal year. First, at the top, the dark blue bar is finance. Profit increased by 5% year-on-year to 49 billion yen, with a progress rate of 27% against full-year forecast. Corporate financial services and banking were generally solid. Forex life increased its investment income, and finance revenues grew in Australia and Singapore. Next, second from the top, light blue shows operation. Profit increased by 5% year-on-year to 55.8 billion yen, with a progress rate of 24% against the full-year forecast. In the environment and energy segment, we closed the sale of Zeek Light, which operates waste disposal plants, and recorded a gain. Eleon increased its electricity sales revenue, and the Kinokawa Energy Storage Plant one of the largest in japan began commercial operations last december which also was a contribution furthermore rentex saw higher equipment rental income on windows pc placement demand and airport concessions continue to see growth in international passenger numbers finally Red bar in the third row from the top shows investment. Profit increased significantly by 61% year-on-year to ¥60.1 billion. In addition to the gain from the sale of Hotel Universal Port Vita, valuation gains on our remaining stake in nicely listed renewable energy company Ormat contributed to this result. Performance at domestic PE investees was solid, resulting in growth in profit contributions. As a result, segment profit for Q1 increased by 20% year-on-year to a total of 164.9 billion. Pre-tax profit increased by 29% year-on-year to 155.5 billion. The difference of 9.4 billion between total segment profit and pre-tax profit is administrative expenses. Please go to page 5. On this page, I will explain ROE and shareholders' equity for each of the three categories. Towards the right, please look at the graph. In dark blue is finance.