Mitsubishi Corp Ord (MSBHF) Q1 2027 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you very much for joining our first quarter financial results briefing for FY26. Despite your very busy schedule, I will begin by explaining the highlights of the results. Please turn to page 3 of the earnings presentation material as indicated at the bottom right. Turning first to our financial results, underlying operating cash flow for the first quarter of FY2026 was 341.2 bn, while consolidated net income was 298.5 bn. Both achieved 27% progress rate against our full-year guidance, marking a solid start in excess of the normal Q1 progress rate as we steadily accumulated adjusted consolidated net income even though significant profit contributions are expected from Q2 onward. At this point, we are maintaining our full-year forecasts. However, as the FX and certain commodity prices remained more favorable than our initial assumptions, we will carefully assess the potential for an upward revision to our guidance in Q2. Tuning next to Progress on Corporate Strategy 2027 Our plan for profit growth of 400 billion yen through the Enhance, Reshape and Create initiatives continues to make steady progress. Our cash flow allocation plan is also broadly on track in light of our recent solid performance and advancement in selecting projects from our investment pipeline. We will remain firmly committed to achieving an ROE of 12% or higher in FY2027, the numerical target set out in Corporate Strategy 2027, and will steadily implement the necessary measures. As one of the measures to achieve an ROE of 12% or higher, we do not rule out capital adjustments through share buybacks and intend to respond flexibly after carefully assessing factors, including potential upside to future earnings and the recent impact of the weaker yen on our capital. Next, I would like to elaborate...