Sojitz Corp Unsp/Adr (SZHFY) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon. This is Kosuke Uemura, CEO. I would like to explain results for the FY25 that ended March 2026 and progress of the Medium-Term Management Plan 2026 or MTP 2026. After that, our CFO, Makoto Shibuya, will explain details of the financial results. FY 2025 was year two of the current three-year medium-term management plan, or MTP, 2026. We posted a net income of 103.6 billion yen for an ROE of 10.1%, both falling short of the plan that was published together with the MTP. Business expansion and earnings contribution centered around energy solutions and health care, chemical trading, as well as defense and marine product related businesses. On the other hand, structural reforms in automotive and the Australian cooking coal business had a temporary negative impact. During the year, we continuously implemented various measures for growth toward our next stage. By implementing new investments that contribute to high-quality growth, we have been able to steadily build out clusters of businesses with clear paths to success. We have also implemented measures to address underperforming businesses. It may have had a temporary negative impact on profit figures, but allowed us to surely transform our earning space into one that generates stable profits into the future. In FY26, we will build on the achievements and aim for 130 billion yen in profit for the period and 12% ROE. This slide was first presented when we announced the MTP2026. Our approach towards the next stage remains unchanged, even with the situation in the Middle East and the progress we have made to date. We will focus on both scale and capital efficiency. By creating the Sawjit's growth story, we aim to achieve our targets of 200 billion yen in net income or profit for the period and 15% ROE and 2 t...