As we engage in global business activities, we are deeply concerned about the current situation in Russia and Ukraine. We sincerely hope that all people will regain peace and world peace will return as soon as possible.

The Medium-term Management Plan 2023 ~Start of the Next Decade~, which started in April 2021, is now in its second year. Looking back on FY2021, the first year of the plan, we achieved the highest profit for the year since Sojitz was established, despite the lingering effects of COVID-19. Besides the rise in resource prices, earnings from new investments made since the Medium-term Management Plan 2017 have contributed to the steady increase in our earnings power.

In addition to executing large-scale investments in the areas of focus set forth in the Medium-term Management Plan 2023, we are also making steady progress in creating new business models that leverage digital technology and creating value through the transformation of existing businesses. In terms of our human resource strategy, we are creating an environment that maximizes the individuality and strengths of our employees under the theme of “transforming diversity into competitiveness.” We are also promoting sustainability in our business and society by taking on the challenge of realizing a decarbonized society through our business and respecting human rights, including in our supply chains. We believe that these efforts will lead us toward our goal of becoming a “general trading company that constantly cultivates new businesses and human capital” by 2030 and, as a result, to achieve a PBR of 1.0 times or above, one of the quantitative targets of the Medium-term Management Plan 2023, as we practice sustainable value creation.

We currently face geopolitical risks posed by Russia's invasion of Ukraine, and we anticipate other significant changes in the environment moving forward. In our business, nothing is absolute and unchanging, and we must constantly evolve ourselves. We seek to gain a competitive advantage and pursue business growth by transforming various risks and changes into opportunities, adopting local market-oriented initiatives, collaborating proactively in and outside Sojitz, and striving for speed, while continuing to transform our organization and human resources as necessary. By doing so, we will practice continuous value creation.