Shiseido Co Ltd Ord (SSDOF) Q4 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:04.436 I will now explain our 2026-5 financial result. 00:00:04.436 -- 00:00:09.622 First on page 3, I will explain the key points of our 2025 financial results and 2026 00:00:09.622 -- 00:00:14.407 outlook throughout this past year. Our business has focused on improving both our revenue 00:00:14.407 -- 00:00:18.852 structure and capital discipline, establishing solid financial foundation capable of 00:00:18.852 -- 00:00:23.677 consistently generating profits. The numerous initiatives we have implemented are now 00:00:23.677 -- 00:00:29.724 yielding results. While we remain on an improvement trajectory, tangible 00:00:29.724 -- 00:00:33.189 changes in the quality of our business are evident. 00:00:33.189 -- 00:00:38.818 Crucially, these improvements extend beyond cost reductions and are beginning to enhance 00:00:38.818 -- 00:00:43.425 capital efficiency. We will continue our management efforts to achieve both sustainable 00:00:43.425 -- 00:00:46.927 growth and improved capital efficiency. 00:00:47.095 -- 00:00:52.105 For FY 2025, core operating profit reached 44.5 billion with a core 00:00:52.105 -- 00:00:54.750 operating margin of 4.6%. 00:00:54.750 -- 00:01:00.061 Despite a revenue decline environment, the results exceeded the initial plan 00:01:00.061 -- 00:01:05.071 of 36.5 billion yen due to the steady execution structure reforms and 00:01:05.071 -- 00:01:07.612 cost management. 00:01:08.071 -- 00:01:13.156 This marks the first time in our four years that we have met our initial plan. 00:01:13.156 -- 00:01:17.000 We recognize this as a step forward in terms of strengthening financial discipline and 00:01:17.000 -- 00:01:19.623 improving the stability of our performance. 00:01:19.623 -- 00:01:24.888 Free cash flow also improved signi...