Sojitz Corp Unsp/Adr (SZHFY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon. This is Kosuke Uemura, President and CEO. Thank you for taking time out of your busy schedule to join us today. I will present results of the first half of the fiscal year ending March 2026 and progress made against the Medium-Term Management Plan 2026 or MTP 2026. And then I will give the floor to our CFO Makoto Shibuya for further details on earnings. Consolidated profit for the first half was 45.3 billion yen, setting 9% against the full-year forecast of 115 billion yen. This is in line with our expectations of around 40% in the first half. The full-year forecast of 115 billion yen remains unchanged from the beginning of the fiscal year. Better-than-expected progress was recorded for aerospace transportation and infrastructure and energy solutions and healthcare, while recovery is taking time for some businesses in metals, mineral resources and recycling, and in automotive. In light of this, we have revised some of the segment forecasts. CFO will later provide more detail by segment. Core operating cash flow is generally in line with plan. Given the current situation, however, particularly for metals, mineral resources and recycling, we have lowered our full-year forecast by 5 billion yen to 140 billion yen. Cash flow from non-resource businesses is growing steadily, and we continue to expect core operating cash flow of around 450 billion yen over the three years of the MTP. U.S. tariffs are affecting some businesses, but the impact is expected to be within the 5 billion yen buffer set at the beginning of the year. Under MTP 2026, we strive to create the Sojitsu growth story by forming multiple distinctly Sojitsu revenue-generating clusters of businesses, or katamari, towards the next stage. By sharing this process with our stakeholders, we hope to...