Sojitz Corp Unsp/Adr (SZHFY) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon. This is Makoto Shibuya, CFO. Let me present today using the material titled Presentation Materials for Financial Results for the Third Quarter ended December 31, 2025, which is available on our website. Slide 4 shows the summary for the 9 months up to Q3. Profit for the period came to 80.4 billion yen, up 4.3 billion yen year-on-year. This is 70% against the full-year forecast of 115 billion yen announced at the beginning of the fiscal year. Core operating cash flow was a net inflow of 93.6 billion yen, 67% against the full-year forecast. The stock price has been rising gradually since November, and our market cap finally exceeded 1 trillion yen. We will continue to progress towards the 2 trillion yen target in the next stage. To summarize Q3 results, the trend was generally unchanged from up to Q2. Segments that have been gaining strength, especially energy solutions and healthcare, chemicals, aerospace transportation and infrastructure, are making strong contribution to profit, in some cases involving asset replacement. On the other hand, segments working on business rehabilitation, such as automotive, metals, mineral resources and recycling, have yet to achieve profit growth. The outlook for the full year is similar. With two months left in FY 2025, we will surely accelerate both forward-looking initiatives as well as rehabilitation efforts as we approach the final year of the medium-term management plan and towards the next stage. Let me provide further details starting with slide five. Slide five is appeal summary. Gross profit increased 10 billion yen year on year to 270.6 billion yen. Newly consolidated subsidiaries contributed significantly to the growth, but the positive impact was diminished by the decline related to coal mining interest in ...