Mitsubishi Corp Ord (MSBHF) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Nakanashi, CEO, Mitsubishi Corporation. Thank you very much for participating in our earnings presentation meeting for the third quarter of fiscal year 2024. First, from my side, I will explain about this quarter's highlights and cash flow allocations. Please turn to page 3 of the presentation material. First, for the consolidated net income for the nine months ended December 31, 2024, was, excuse me, December 25, was 827.4 billion yen. In the Japanese offshore wind power business, due to a dramatic change in the business environment, we have recorded impairment of 52.2 billion yen. Based on the situation, we are conducting a downward revision for the power solution segment. However, as we have booked large gains coming from revaluations and sales of assets, and as we are expecting some segments to perform better compared to the outlook of our previous quarterly announcement. Accordingly, we expect we'll be able to achieve the 950 billion yen outlook for the full year that we have previously announced. The projects that have gone through impairments are three. one at the offshores of Noshiro City, Mitanecho, and Oga City of Akita Prefecture, one at Yurihonjo City at Akita Prefecture, and one at Choshi City of Chiba Prefecture. Since we have successfully won the bid in December 2021, we have been conducting development for around three years. However, the change of the business environment surrounding wind power triggered by geopolitical risks such as a global acceleration of inflation and yen depreciation, constraints in the supply chain, and the rise of interest rates were much greater than our initial assumptions. In light of this situation... we have recorded an impairment of 52.2 billion yen, the maximum amount that can be recorded at this time. This amou...