The following is a summary of the Mitsubishi Corporation (MSBHF) Q3 2023 Earnings Call Transcript:
Financial Performance:
Mitsubishi Corporation reported a consolidated net income of ¥696.6 billion for the first nine months of FY2023, marking it the second highest ever.
Despite a decrease of ¥259.2 billions in profits due to soaring resource prices, the company continues to accumulate profits across its businesses.
With the upcoming implementation of up to ¥500 billion in additional share buybacks, a total payout of about ¥890 billion is expected for FY2023, increasing the total payout ratio to a record 94%.
Mitsubishi achieved ¥904.9 billion underlying operating cash flow and ¥644.1 billion cash flow from divestments in the first nine months of their Cash Flow Allocation Plan under the Midterm Corporate Strategy 2024.
Business Progress:
Mitsubishi Corporation announced a significant share buyback program and a strategic business partnership with Lawson and KDDI.
Mitsubishi's strategic focus includes growth of Lawson's business, its corporate value, and the establishment of the SLC Group to build a value-creating platform in the midstream and downstream domains.
The company is considering strategic M&A's in regions such as Europe and the U.S to further their growth strategy.
Despite an impairment loss in Q3 due to a change in the enterprise value and re-evaluation of the asset value in its overseas food business, the impact of this has been factored into their annual guidance and will have minimal effect on full year results.
Mitsubishi Corporation continues to strive for improvement in the profitability of its investments, including Lawson, in alignment with its value-added cyclical growth model.
More details: MITSUBISHI CORP IR
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