Keita Ishii
President, COO, Chief Strategy Officer, GM of Group CEO Office & Representative Director

Hello, everyone. I am President Ishii. Thank you very much for joining us today. I will explain our FY 2025 business results and FY 2026 management plan. First, for FY 2025 business results, please refer to Page 2 of the presentation materials, FY 2025 business results and FY 2026 management plan.

Consolidated net profit reached JPY 900.3 billion, while exceeding our initial plan of JPY 900 billion, marking a record high for the second consecutive years and achieving JPY 900 billion stage for the first time. Although FY 2025 started under highly uncertain and volatile conditions, including the impact of U.S. tariff policies and rising tensions between Japan and China, we steadily accumulated core profit by addressing each challenge arose, and successfully achieved our initial commitment driven by extraordinary gains from asset replacements, et cetera.

Next, core profit increased by JPY 11.5 billion year-on-year, reaching JPY 781.5 billion. As announced, there were negative factors in the first half of FY 2025 that we didn't expect in our initial plan, including delays in the coking coal projects, sluggish iron ore prices and underperformance in the finished pulp business.

However, prompt countermeasures and turnaround initiatives enabled us to recover to a normalized level in the second half. On the other hand, steady growth in our core group companies, including FamilyMart, DESCENTE, CTC, and North American power business, as well as in our medium-sized businesses in the non-resource sector contributed to accumulate core profit solidly.