Financial Data and Key Metrics Changes - Consolidated net income for FY2022 was JPY1.1807 trillion, an increase of JPY243.2 billion from the previous year, marking the first time reaching the JPY1 trillion level [2] - For FY2023, consolidated net income is expected to be JPY920 billion, continuing the high level seen in FY2022 [4] - Free cash flow after shareholder returns was JPY0.4 trillion, attributed to favorable operating cash flows and aggressive asset replacement [5] Business Line Data and Key Metrics Changes - The company has committed JPY0.5 trillion in FY2023 for EX related investments, building a steady pipeline for new investments [6] - The company has narrowed down over 200 EX projects to around 100 high-priority projects for execution during the current Midterm Corporate Strategy period [8] Market Data and Key Metrics Changes - The outlook for cash flow from operating revenue is expected to increase by JPY2.5 trillion, with a possibility of exceeding JPY1.5 trillion from divestment promotion [15] - The company anticipates a decrease in consolidated net income by JPY260.7 billion in FY2023 due to overheated market conditions, particularly in resource prices and foreign exchange [17] Company Strategy and Development Direction - The company is focusing on EX strategy, DX strategy, and creating a new future as part of the Midterm Corporate Strategy 2024 [7] - The company aims to achieve double-digit ROE as a quantitative target of MCS 2024, maintaining this level over the mid to long-term [19] Management's Comments on Operating Environment and Future Outlook - Management views FY2023 as the year of execution of the Midterm Corporate Strategy, emphasizing steady enhancement of corporate value without being carried away by strong performance [20] - The company intends to aggressively allocate investments beyond the JPY3 trillion set forth at the time of strategy formulation, reflecting confidence in cash flow generation [17] Other Important Information - The company plans to return a total of more than JPY1.5 trillion to shareholders, including the payout in FY2022, with a total payout ratio of approximately 40% [16] - A new startup support program was established in collaboration with Kyoto University to promote DX initiatives [10] Q&A Session Summary Question: What are the expectations for future investments? - The company has committed JPY0.5 trillion for FY2023 in EX related investments and is actively monitoring the market for appropriate investment opportunities [6] Question: How does the company plan to maintain profitability in EX related businesses? - The company aims to optimize returns by carefully selecting and investing in quality projects, ensuring stable earnings and capital gains [12]
Mitsubishi (MTSUY) - 2022 Q4 - Earnings Call Transcript