Toyota Tsusho Corp Ord (TYHOF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

like to walk you through the consolidated results for the previous fiscal year, fiscal year 2025, and the earnings forecast for the current fiscal year, fiscal year 2026. Phase 2 shows a summary, and the foreign exchange rates used are listed in the upper right For fiscal year 2025, P&L translation was based on a US dollar Japanese yen rate of 151 yen, a 2 yen appreciation of the yen, and a Euro Japanese yen rate of 175 yen, an 11 yen depreciation. Operating profit for fiscal year 2025 reached 545.2 billion yen and profit was 370.5 billion yen. I am pleased to report that we have achieved record high profits for the fifth consecutive year. As I will elaborate later, we recorded 15 billion yen in one-off losses for fiscal year 2025. When considering that fiscal year 2025 had recorded one-off gains, we reached this 370.5 billion yen profit despite a total negative swing of 26 billion yen in non-recurring items. Operating cash flow stood at 461.1 billion yen. This figure was heavily impacted by a substantial build-up of inventory, particularly in memory-related products, which increased by 400 billion yen alone. Regarding investing cash flow, while the headline figure may be slightly misleading, our actual cash outflow for investments exceeded 400 billion yen. This includes over 300 billion yen for the purchase of shares in Toyota Industries, which is reflected in the negative figure shown here. Our net DER has decreased 0.3 times, primarily because the funds allocated for the purchase of Toyota Industries shares are currently held as cash on hand. Conversely, ROE stands at 12.8%, which is a slightly underwhelming figure compared to our targets. Regarding dividends, we had initially announced a payout of 116 yen for fiscal year 2025. However, following our second upward...