Sojitz Corp Unsp/Adr (SZHFY) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

I am Uemura. Thank you very much for attending today despite your busy schedule. Firstly, I'll explain the progress of medium-term management plan 2026. After that, CFO Shibuya will give you details of the financial results. This slide is from the MTP material. MTP 2026 is positioned as MTP to establish and reinforce business foundation in anticipation of next stage. For that purpose, I think it is important to invest in base of growth and human capital activity, continue to create the Sojitsu growth story, and show the results to the market. In the first year of the MTP2026-FI2024, profit for the year was 110.6 billion yen, surpassing three-year forecast of 110 billion yen. Despite negative factors such as market conditions, we expanded businesses and captured profit mainly in energy solutions and healthcare division, chemicals, trays, defense-related business fertilizer and domestic retail. ROE was 11.7%. We made a steady progress toward achievement of the MTP. Cooperating cash flow was also firm. Also in FY 2025, aiming at further profit growth, we target around 120 billion yen level in real terms. However, by incorporating uncertain external environments such as impacts of U.S. tariff measures, forecast for profit for the year is 115 billion yen. We incorporated a negative impact of 5 billion yen due to tariffs and others and continue to carefully monitor the impact in each business. In MTP 2026, one of the most focused initiatives is creating the Sojutsu growth story. To create the Sojutsu growth story, it is important to complete expansion of new investments and enhancement of existing businesses. We will also transform portfolio through its creation. For expansion of new investments, while investing in business fields with sustainable growth potential where we...