Sojitz Corp Unsp/Adr (SZHFY) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon. Thank you very much for joining us for the briefing. First, I'd like to express my deepest sympathies to those affected by the latest earthquake in Kumamoto and my sincere respect to all of those involved in various recovery efforts. My presentation will follow the material titled Financial Results for the First Quarter ended June 30, 2026 and Full Year Forecast of the Fiscal Year ending March 31, 2027. Slides are available on the web. Slide 4 is a summary of Q1 results. During the first quarter, we faced an unstable economic environment characterized by rising energy prices due to the situation in the Middle East, resulting inflationary pressures and challenges in the supply chain. Against this backdrop, Sojitsu's consolidated profit for the period came to 30.2 billion yen, up 9.1 billion yen or 43% year-on-year. The progress rate toward our full-year forecast is 23% and is in line with our expectations. Core operating cash flow was a net inflow of 40 billion yen, marking steady progress of 27% against the full-year forecast. In this final year of our Medium-Term Management Plan 2026, our priority is to expand business domains that provide clear paths to success for our next stage. We have made steady progress in this regard, with execution of new investments worth ¥60 billion, investment decisions on several projects, and more in the process of negotiations and due diligence. Structural reforms initiated in the previous year are also largely progressing in line with plan. Given the continued uncertainty in the business environment, including the situation in the Middle East, we are maintaining our initial full-year forecasts, including those by segment. Let me provide more details starting from slide 5. Slide 5 is a balance sheet summary. Total asse...