Ladies and gentlemen, thank you very much for joining us today for Mitsui & Co. Investor Day 2022. I am Tokuda from Investor Relations Department of Mitsui & Co., and I'll be serving as the moderator today. Please be advised that this event will be webcast. Please also note that copyrights to the video and audio contents of today's webcasting belong to our company and our management company. Please refrain from reproducing or diverting any part or all of the video and audio for any purposes without prior permission from us. Today's meeting will be recorded and broadcast on demand later on the website of Mitsui & Co. We appreciate your kind understanding and cooperation. Now, let's get started with the program. I'd like to ask our Chief Executive Officer and President, Kenichi Hori, to make remarks on opening and management policy. Good afternoon, ladies and gentlemen. I am Kenichi Hori, President and CEO of Mitsui & Co. Thank you for taking the time from your busy schedule today to attend our Investor Day 2022. Today, I'll begin by reviewing the current Medium-Term Management Plan, or MTMP, from the perspective of Mitsui's unique approach to value creation, as described in our integrated report. I will then outline initiatives we are undertaking to enhance corporate value. Throughout our history, we have resolutely confronted and tackled global issues, creating what we call real solutions through business. We use our extensive resources, including our expertise and know-how, to seek our new businesses and create new businesses, which we then strengthen and grow into our businesses. The next step is to extend these core businesses by forming them into clusters with peripheral businesses and even into cross-industry business clusters. This is our business model. Through our business in activities, we provide real solutions to social issues and create unique value. Three strengths form the foundation for this business model. The first is our focus on human resources, as expressed in the phrase, "Mitsui is people." The second, open-mindedness, refers to our corporate culture. The third, business portfolio, is something we have refined over many years. Today, I'll review the current Medium-Term Management Plan from the perspective of the value generated by our business portfolio. In the period covered by the current Medium-Term Management Plan, we have experienced disruptive changes in the external environment, such as the COVID-19 pandemic and supply chain disruptions caused by the Ukraine crisis. This has been a trying period for companies and has highlighted where their true value really lies. Despite these challenges, we have contributed to the stable supplies of LNG, iron ore, automobiles, grains, and other commodities, and as a result, generated robust earnings. This steady and consistent growth of earnings power has risen significantly, something I have strongly felt in this final year of the Medium-Term Management Plan. Please look at this chart. The bars show Core Operating Cash Flow, which is the source of shareholder returns, while the lines in the chart trace the prices of iron ore as well as crude oil. Market participants often refer to commodity prices when looking at Mitsui, but as is apparent from the chart, our cash flow has not been significantly impacted by the trends in this area. Furthermore, the Core Operating Cash Flow has risen remarkably since the final year ended March 2022. The reason behind this is the excellent cost competitiveness of the projects in which we participate. This means that we can still generate a level of stable earnings power even during a downturn in the market, and yet can capture upside when commodity prices rise. I just now referred to the steady earnings power and higher profit. I believe the reason for this sound performance can be found in our business portfolio. The strength of our portfolio lies in its global scope, as evidenced by the fact that overseas-affiliated companies contributed over 80% of the profit in the fiscal year ended March 2022. The source of our robust profitability stems from our diverse business portfolio spanning multiple industries. I would like to introduce one business as an example of our extensive business portfolio. That is the iron ore business in Australia. In October 2022, we marked the 50th anniversary of the start of the shipment of iron ore by the Robe River Joint Venture. The biggest challenge that we faced when developing the Robe River mine was the arrangement of development finance. However, the conclusion of a long-term sales agreement with Japanese buyers and off-take guarantee provided by Mitsui greatly facilitated finance arrangement. While of course there have been a myriad of challenges during the long history of this project, Robe River has grown into one of our core businesses through continued improvements to production. We will continue to work with our partners, Rio Tinto and Nippon Steel, to maintain stable supplies of iron ore. Global diversification made possible by the regional scope of our business portfolio is becoming increasingly important as an effective solution to mitigating rising geopolitical risks. Mitsui has many excellent businesses in North America. This is a major advantage for us because the business environment in North America is stable and has an abundance of opportunities for new innovations, including decarbonization initiatives. Our North American businesses span a wide spectrum of industries, including automobiles, grain, feed additives, and tank terminals. Leveraging the expertise we have accumulated in a wide range of businesses, we are also developing a clean ammonia production business. In addition, we are building a gas value chain covering all stages from gas development and production to LNG liquefaction and sales. One example of our activities in North America is our automobile business with Penske. We invested in Penske Automotive Group in 2001, and Penske Truck Leasing in 2015. For over 20 years, we have continually worked to optimize these businesses in close partnership with Penske. Despite the supply chain disruptions caused by COVID-19, these companies have reliably sourced vehicles and substantially expanded their earnings by responding to customer needs through an expanding range of service offerings, including new and used car sales, leasing, renting, and maintenance. We expect profit from our North American business to reach approximately JPY 220 billion in the fiscal year ending March 2023. The 3-year average for profit for the current Medium-Term Management Plan period is about 5 times higher than the average for the previous plan period. This increase is significantly greater than the GDP growth rate of North America. Mitsui has constantly modified its business portfolio in response to or in anticipation of change. Now we will actively reallocate resources to achieve further enhancement of our corporate value and will step up our portfolio transformation process. Later today, our CFO, Tetsuya Shigeta, will explain our rigorous investment discipline and enhanced monitoring of executed projects. Here, I would like to address our asset recycling activities and active reallocation of resources. Even projects that generate solid returns are subject to annual portfolio reviews and portfolio restructuring. When determined that's appropriate, we engage in asset recycling. Asset recycling is a fundamental part of Mitsui's business. To elaborate on this approach, I will explain cash inflows and profits generated through this recycling process. Before COVID-19, cash inflows averaged around JPY 250 billion per year, and recycling profits were over JPY 50 billion. This year, we completed the sale of the Australian Metallurgical Coal business, SMC, in October, and our Falcon Power Generation business in Mexico in November. Based on these sales, we expect cash inflows to reach JPY 400 billion, and profit from recycling JPY 90 billion in the current fiscal year. We will continue to implement this constant recycling process. Funds generated by asset recycling are not simply circulated within the related business units or segments. Instead, to actively reallocate resources, all funds are reallocated across the group. This is another distinctive feature of Mitsui's management approach. Also, in anticipation of the next Medium-Term Management Plan period, we plan to invest in areas such as securing a stable supply of resources and materials and enhancing our functions. We will also execute growth investment designed to deepen our strategic focus areas. Portfolio management is not limited to capital allocation. One of our advantages is our ability to flexibly form capable teams by bringing together employees with diverse careers and unique strengths beyond the boundaries of industries and fields of expertise. We have always actively transferred personnel between different business segments. We will continue to accelerate the inter-group transfer of talent across industrial segments and national borders to respond quickly to innovations emerging from cross-industry initiatives. In the current fiscal year, we have introduced a talent management system that will make this possible. As an example of growth investment, I will outline our efforts to build a value chain in the area of food and nutrition. We combine various nutrition-related areas such as feed additives, veterinary pharmaceuticals, and health food services in a value chain ranging from seeds, agricultural, and livestock products, et cetera, at the upstream domain, to processed food and food services at the downstream domain. Through our activities in these areas, we will add value, including health and nutrition across the entire value chain. The added value that we provide also includes a reduction of environmental impact and the provision of products and services that meet the increasingly diverse needs of consumers. By building business clusters along value chains, we will provide added value to the established stable supply structures and productivity improvements. Lastly, I'd like to talk about the shareholder returns. Mitsui has long been committed to the enhancement of shareholder returns, and our dividend per share has increased by 15% annually since the year 2000. The total return yield in the fiscal year ending March 2023 is calculated to be around 7.1% based on the market capitalization as of November 30th and projected dividend and share repurchases. Major changes in the global environment are likely to continue in the 3-year period of the next medium and social issues will become even more complex. Also, over the coming years, people around the world will personally experience the consequences of global scale issues firsthand, including climate change and maintenance of natural capital. We are determined to push ahead with our transform and grow strategy by providing real solutions to these issues. Based on our quality projects in the pipeline, we will continue to pursue both growth in investments and shareholder returns and thereby work diligently to meet the expectations of our shareholders. The next item on the program is a panel discussion with our directors, Izumi Kobayashi and Samuel Walsh, on the subject of value creation by Mitsui & Co. This will be followed by a Q&A session. I hope that Investor Day 2022 will lead to a deepening of dialogue with our stakeholders as we pursue even more robust initiatives going forward. CEO Hori, thank you very much. We would now like to proceed to the panel discussion. Any questions in regards to the just presented contents, we would like to entertain those questions at the end of the panel discussion. Representative Director, President, CEO Kenichi Hori will continue to serve on the panel. External Director Izumi Kobayashi. External Director Samuel Walsh. Facilitator will be from Financial Times, Tokyo Bureau Chief, Kana Inagaki. Now, for this panel discussion, we would like to proceed in English. For those of you at this venue, please utilize the simultaneous interpretation device if needed. Please reference the screen as to how to use this device. Now, the Q&A session that follows, we will also receive questions in either Japanese or English. Let us begin without further ado, and I would like to hand over to Inagaki-san. Good afternoon. I will be acting as the facilitator. I am from Financial Times. My name is Inagaki. We would like to proceed this panel in English. My name is Kana Inagaki from the Financial Times, and I'm very honored to moderate this panel today. At the Financial Times, we have been closely observing the evolution of the business model of trading houses and the efforts to strengthen governance at Mitsui. I'm very much looking forward to the discussion today. Let me now jump into the questions. Kobayashi-san, if I can start with you. Thank you. There has been increasing pressure from investors for companies to have high ESG standards. In what ways do you think Mitsui's business model is effective in addressing these ESG needs? Thank you. I think that for years, the biggest issue, discussion point at the Board is how to change the business portfolio of this company, especially considering that the change of the need of the society, environmental and social issues. I think that recently we see in the stage that the company actually showing the result of the historical investment, especially I just want to pick up one example is IHH Healthcare. Of course, that the healthcare IHH's development is one of the big tasks for the business. Also I think now we are seeing that opportunities to connect other investment like drugs or medical instrument are on these related to the healthcare. Those are now connected to grow the further business of healthcare area in this company. I think that everybody understand that the healthcare is one of the biggest issues in not only Japan but global. I think that this is one of the challenges and the company applied. I think now we are going to the next stage, which is not only the healthcare area, but for other industries related to healthcare and other initiative to connect to better business model to serve and solve the social issues. I think like probably food or the nutrition, energy. I think those can be collaborated to build the to create the new food for the company. Great. Thank you, Kobayashi-san. I'd like to move on to a question for Mr. Walsh. I'd like to build a bit on the healthcare issue as well. On the back of rising commodity prices following Russia's invasion of Ukraine, Mitsui's energy business has performed strongly. T he company has a longer-term strategy to diversify its business portfolio, I think the investment in healthcare is one example of that. Do you think Mitsui's diversification strategy has been successful? I think that it's a journey and I think that Mitsui is moving quickly. It's an exciting business to be part of, to experience the reshaping of our portfolios, as Hori-san mentioned in his introduction. I think that certainly greater investment in non-cyclical areas is important for us because that provides stability and sustained earnings. Now, as you mentioned, the high energy prices and commodity prices have been good to help us fund those sorts of investments, but that's important. I think also, as Kobayashi-san mentioned, decarbonization is for us an opportunity for us to invest in projects that will actually assist in the world in reducing greenhouse gas and the impact of climate change. That's important. Another area to me which is important is operatorship of projects. Traditionally, in many areas, Mitsui took a minority position, and you can understand that as the company moved from a trading house to an operator, that we needed to build the skill base. Well, the skill base is now there and we're now starting to increase the amount of projects where we are the operator. That's important because if they're good projects, then you'll make better returns if you have a larger share. It's also important in the area that Kobayashi-san mentioned, the governance and compliance area, that if we're running the project, then we can ensure that the project will be at the highest standard. That's very important. Lastly, in the area of ESG, which I've already touched on, this is licensed to operate. As Hori-san mentioned in his introduction, the consumer, the communities are becoming more demanding and companies just need to be at the forefront of ESG issues. Thank you. Great. Thank you. Hori-san, it'd be great if we can hear from you as well about Mitsui's evolving business model, you know, especially after all the changes that Mr. Walsh just mentioned. Yes. Thank you. May I add that I'd like to add one thing about the way the board discusses, 'cause we just had two very good examples of Mr. Walsh and Ms. Kobayashi giving their respective views. At our board, we allocate time for free discussion where we discuss large direction for our strategy. In that large discussion, the Board discusses what we should be doing in the large healthcare ecosystem, what we should be doing in the long-term energy transition business, and what are the base that we have, we have to adhere to in order to maintain our robust earning base, but at the same time, reconfiguring our portfolio so that we are able to capture these new opportunities. I think those kind of discussions are very important. As Kobayashi-san said, our healthcare nutrition ecosystem is growing, and it is also encompassing the food sector, and it would also relate to the preservation of natural capital. This is very important. As Mr. Walsh said, if Mitsui takes more operating role in our businesses, that means we would have a larger menu to work from in our energy transition endeavors. These board discussions tend to shape the direction that the company should go. I think that is a great value that is being created. Thank you. Great. Thank you. It's perfect that Hori-san just talked about the board discussions because our next discussion will be on the role of External Directors. Many Japanese companies now have External Directors as part of their corporate governance reform. I think there are still questions on how effective they've been in terms of perhaps challenging the management, or ask, you know, trying to get more lively discussion. Mr. Walsh, can you tell us a bit about how these board discussions go at Mitsui? Also maybe share with us an episode when your opinion differed from the management. I think that Mitsui is doing a great job of involving non-executive directors and building up a skill base and experience base of its non-executive directors. You need only look at the participants to see the skills that they bring. Our process is designed to ensure that we maximize the input and involvement of our non-executive directors. We have a pre-briefing session the day before the board meeting. That allows the non-executive directors to ask the detailed questions that you just wouldn't have time for in the board. It enables, as it's the next level down who are making the presentation, to get a thorough answer to your questions. It also enables the non-executive directors to flag their position, to flag the position they're gonna take on an investment, whether they're supporting it or whether they are not supporting it. In a case, shortly after I joined the Board, there was a project that I didn't think that given my experience that it was a good project for us for the longer term. I flagged that in the pre-briefing session. I had a follow-up session with the management from that area the next morning, in the Board meeting, I stated my opinion. Our system is very good in taking into account things like that, because the Mitsui Board operates on the basis of consensus. Even though that there are nine executive directors and five non-exec, because you need a consensus, you need everybody agreeing. It's clearly an area where the non-executive directors are very thoughtful. They're very considered in their view. As I say, they flag the day before where they're coming from. There was a project that I didn't support. I flagged that at the pre-brief, and I don't think it was a surprise when it got to the Board meeting that I would not be accepting it. The management or the Chair said that we will not proceed with the project. It was a good outcome on the day. It's a good outcome when I look back on the decision that we made. Thank you. Great. Thank you so much for sharing that episode. I mean, in light of what, you know, Mr. Walsh just shared with us, Hori-san, how have the discussions, I mean, you touched on this a little bit in the comments earlier, but how have the discussions with the non-executive directors been helpful in making management decisions? Yes. We take these discussions and engagement with our independent directors obviously very seriously, but also at the same time, viewing it as a great way to benchmark our activities and our decisions against what a first-rate global company would do in that situation. We, we would like to be counted as one of them as well. For instance, the example that Mr. Walsh just brought up, I think that reflects that kind of thinking. A candid exchange of opinions and trying to position the company at a higher accountability level that is so important for us. We think these lively discussions at the board helps us get there. Thank you. Great. Thank you. Now I'd like to go into a topic that is very important for Hori-san and also many other CEOs of companies. Kobayashi-san, Mitsui has a very strong focus on its employees and, you know, investment in people. In what ways do you think Mitsui's HR strategy is unique compared to other companies, since a lot of companies do talk about investing in people? First of all, I think Mitsui has a variety of the human development program, the training for leadership or the junior people, and I participated many of them, and pretty interesting. I just want to highlight one initiative, which is not particular for the human development, but from my point of view, it's a great tool to develop the people, and that is the Moon program. Moon is the program to support the incubation, internal incubation, which anybody can apply. I think there's a similar program many of the company has that to have the internal program to support the social incubation or the new business internally. Unfortunately, as far as I see, not many companies are successful with it. Instead, the Moon of Mitsui is, I feel it's very successful, and there are many new businesses. It's still small, but new business has been coming out. I think that one of the success point is which is really committed by top management, but not only top management. I think that the middle management believes that is an opportunity probably for two ways. One is that to find out the new business opportunity, but also it is a really strong tool to develop the people. The young people, especially young generations, are encouraged to challenge something new. That is one point. The second point is that through the program, people relate to the, not only within the Mitsui, but outside people who have a new idea or a new way of thinking. People are forced to think things from out of the box of Mitsui. The third point is that even though the business plan can be successful or not, the people experience being a CEO in their own business. I think that is a very strong development tool for each people's leadership, or think not only particular business, but to see the things from the corporate view. I believe that the Moon, I'm not sure that the Moon, what kind of intention, there was any intention as a human development through the Moon. I think that the Moon is a very interesting program, and that is, I think that also it's probably one of the source of the young generation in Mitsui. It's so energetic and challenging, having a challenging mind. Great. Thank you for sharing about the Moon incubation program. Mr. Walsh, I'd like to ask you, considering your background, what do you think are the opportunities and challenges for Mitsui in terms of finding global talent, considering that there is such an intense competition for talent these days? Yes, that's certainly right. We are a global company and we do have a global portfolio of human capital. I mean, it's a tru ism that people are a company's strongest asset. We have a lot of very capable people. We have a good brand, we have a good reputation. Quite frankly, with the reshaping of our portfolio that I mentioned, it provides great interest for all of our employees globally. Our company has developed a register of employees' skills, experience, their performance ratings and so on that can be shared and available so that the company can determine who has the best experience to take a project forward. We operate in divisions, but quite frankly, there's synergy between divisions. There is technology that over-arches the divisions. There's ways of operating and obviously sales and marketing opportunities. Bloom, I think is a key initiative in terms of taking advantage of our diversity and our inclusion, which are important elements, and I'm living proof of our company's approach to diversity. Thank you. Great, thank you. Hori-san, I'd like to ask for your concluding remarks to explain why you put people at the center of your management philosophy. Well, thank you. Mitsui's people has always been our true slogan. We want to be true to our own people when we say that. This includes everyone, the middle managers, the executives and the board. I am very grateful that our board members are very active in actually going to the frontline when they can do so to meet the Mitsui people working very hard in the frontline. Ms. Kobayashi-san encourages the Moon people very directly. Sam-san or Mr. Walsh interacts with our people all the time, especially in Australia because of proximity. I think it's nice. Probably the way it's phrased is different, but what I find is that our employees tend to get the same type of encouragement, probably phrased differently from at various levels of our company. From the board members, the independent board members, our executive team and the middle managers. I think that is that will put together a huge momentum for our people in their development. Mitsui wants to provide a good network to its people. The Moon example Kobayashi-san explained provides external network in a very interesting way happening in Palo Alto and here in Tokyo. The Bloom example that Mr. Walsh explained is a way of connecting the internal talent so that we could put together a cross-functional diversified team to tackle a project. All these statements made by various executives at various level foster that type of people development at Mitsui & Co., Ltd., and we will continue to keep that as core of our company's values. T hank you. Great. Thank you so much. I think we got a flavor of the lively discussions at the board meetings in today's panel discussion. Thank you again for all the panelists today for this discussion. Sorry. I'll switch to Japanese from here. Now we'd like to go into Q&A. If you have any questions, please raise your hand. You may ask your question in Japanese. If you have a question for Mr. Walsh, you may ask in Japanese because it will be translated into English, or you may speak in English. Please wait for the microphone before you ask your question. Please state your name and your affiliation before asking the question. I would like to limit one question per person. You may raise your hands repeatedly, but because of time constraints, we may ask you to limit your questions. Because we have simultaneous interpretation, please make your question very simple. Thank you very much for your cooperation. If you have a question, please raise your hand. Person sitting in the front row, please. Please state who you'd like to have the question answered. Thank you. Thank you very much for this opportunity. I'd like to ask a question to Mr. Hori. In your explanation earlier, you talked about the board meeting and you talked about large direction. When it comes to decarbonization. What is the large direction being involved? When you think about the next year Medium-Term Management Plan, what will be the direction of investment going forward? Thank you very much. Thank you very much for your question. In our Board meetings, we may have special topics or agendas, and they are freely discussed among the members. We may talk about low carbonization and how we should adapt to such trends is being discussed. That is the kind of session that we have had in the past. The discussion in that session that shows our corporate color, but the existing projects that we have, the existing business that we have needs to be decarbonized. The portfolio and the emissions, they should be controlled. At the same time, we may have to use new technologies like renewable energy, like ammonia and hydrogen. That kind of new technology would be target of investment so that we can move towards decarbonization. That is a kind of project development that we are pursuing. The timeline as well as to what extent do we evolve the portfolio is discussed at the BOD as well. Obviously we need to secure the economics, and at the same time, we need to be responsible for our corporate actions. At the same time, we need to focus on the fact that we, as a company, controls the emission of CO2 and offer a stable energy supply, as well as make sure that we are in alignment with low carbon society as well. We will be implementing projects along the way. In the upcoming Medium-Term Management Plan, to what extent can we cover this? We are in the midst of discussions. Now in preparation for 2030, obviously, we have that goal in mind as well. Also projects, that we are covering currently, we balance the discussions between that as well. Thank you very much. In terms of direction, a decarbonization is, I think, an original focus, and I'm sure that, the members are discussing in that direction. After the Ukrainian conflict, the speed perhaps, or the approach to this direction, has something changed or have you discussed the need to change? Inclusive of the Ukrainian situation, the geopolitical landscape obviously is something that will be something what we have to be ever more conscious of, and that is our thinking. In doing so, for instance, if it's energy, then the distribution of energy procurement, the speed of procurement, as well as we need to enhance the engagement as well. For instance, for gas developments, I think many regions are undertaking these developments. We need to make sure that we understand what is happening, make sure that we can diversify our procurement and for renewable energies as well. Obviously, the conditions that, nature conditions differ from region to region. The economics differ from region to region, so we ever more understand that it is critical to have this global portfolio. Thank you. Thank you very much. I would like to proceed to the next question. I see a hand in the middle of the room. I would like to state my question. I would like to ask a question to the two External Directors. For the past three years, I think it has been, aside from resources, I think your other businesses have grown quite rapidly. You two have been serving as External Directors for some time now. Obviously, some of the external conditions are boosting your sales, but at the same time, what unique approaches have Mitsui taken to actually boost this growth? I think that Sam-san mentioned that you are converting from minority to majority shareholding. If, you can perhaps, give us some more details as to what you're actually doing. Thank you for the question. It is an important role for the non-executive directors to, I guess, focus the discussions on areas of potential and areas of significant change or provide opportunities for us. We believe that decarbonization provides that opportunity. Also, we have seen that our existing portfolio and existing skills that we developed over time can be nurtured, can be expanded, can be developed. Quite frankly, the project that Kobayashi-san mentioned, IHH, we had an initial involvement there, initial investment, so we're able to see that project and understand the dynamics of healthcare, and we're able to build on that and increase our equity until we had operatorship of that project. That sort of approach is important for us. The External Directors and management have been strongly supportive in investing in what we call non-cyclical areas or segments of the business world. That's going to be important going forward. Thank you. Kobayashi-san, please. As Walsh-san mentioned, I would like to add on to that, and this is a personal perspective, but for each and every project, it's not just about the investment. There has been strong commitment to the operation of that project as well. It's not that every single investment succeeds. However, by being involved in that operation, it allows insight to be accumulated, which will lead to the next investment, which is quite a virtuous cycle, I believe. At the board, obviously, when new investment projects are discussed, this is something that other External Directors always ask as well, "What happens five years down the line? What happens 10 years down the line?" Society needs will change. We obviously discuss these aspects as well. Just because the IRR is good, it's a good investment, we always look into the future needs of society. I do believe that that approach has been solidified over the years. For the past decade, with the shifting of the portfolio, has resulted in boosting or growing the company. Thank you very much. We would now like to move on to the next question. From this side, person in the second row, please. Thank you very much for this opportunity. I would like to ask a question for the two External Directors. For geopolitical risks included, the business environment is quite uncertain at the moment, I believe, and I believe, many people are concerned. Obviously, as the board, you also have the monitoring function as well, which I'm a bit concerned about. Yes, opportunity taking, I think you've been very proactive in explaining that to us, but you also have the role of a supervisor, a monitoring role. Aside from consensus building, there are times that External Directors have to take different actions as needed. From the two External Directors' viewpoint, how do you proceed with these healthy discussions at the BOD, if you could give me some ideas? Thank you very much. Would you like to start or... Yeah. No, thanks for the question. You're right, that is an important role that the non-executive directors play. Certainly, if you look at the portfolio of interests and involvements of the directors, they can provide insights that may or may not be available to the management. You know, particularly if. Well, I'll take the example of my involvement in Australia. Roughly, 40% to 50% of our earnings come from Australia. Having a director based in Australia who's very much involved in the businesses and understanding the dynamics of the politics and the social scene, then I can provide insights that, for example, may or may not be available to people based here in Otemachi. Of course, there are different perspectives that we each bring from our own country in relation to what may be happening in Ukraine or what may be happening with climate change or whatever, China, whatever the dynamic force is. We can provide our knowledge, our experience, our insights into that in the discussions. The world is a very changing issue right now, and it's moving very quickly. I'm very pleased at the momentum and the flexibility and responsiveness that Mitsui has developed in relatively recent times. The company is reacting and responding sensibly to the changes in the dynamics of the world situation. Thank you. Kobayashi-san, please. As Mr. Walsh said, I'm from a different industry and having different perspectives are really important, and I'm always impressed about the comments that Mr. Walsh makes at the Board of Directors meeting. Different directors have different backgrounds. As one of the External Directors, I myself listen to the perspectives and comments of other directors, and that gives me some new insights as well. There will be various discussions that will be accumulated based on that, and there will be a variety of perspectives provided to the management. The risks and also opportunities are actually provided as input. I think there is a major part that is being played by the External Directors. Secondly, this is about specific actions. The potential impairment risks are have been reported in more detail recently, including probability of impairment losses, how much amount are we looking at, and how much profit potentially could be generated. Those are in- depth reviewed at the Board of Directors meeting, including External Directors. We have this simulation that if this happens and this, and this amount of impairment loss could happen, and that this kind of discussion is being done at the Board of Directors meeting is really effective. Thank you. Next question, please. The gentleman in the front row of the same section of the previous questioner. Thank you very much. I have a question to two External Directors. As External Directors, you've been watching the company for many years, and there's still area for further improvements or there's something that's missing in Mitsui from any perspective, including governance. Is there any such room for further improvement? If you can just be frank with us at this moment. That's my first one question. Why don't we start with Kobayashi-san this time? Well, in various senses, E and S is something that this business management is fully aware of, and the business is being implemented with that perspective. That is obvious in the comments by Mr. Hori, I am sure. You have to further drill down in this area. There are things that we should proceed as an opportunity, but maybe we can take one more step forward and look at the carbon pricing. When it is actually introduced, what is going to happen in which industries? That should be further analyzed in more depth. That is something that has to be done. Another thing, because this is a great opportunity, well, this is a pressure to executive officers. For example, female employees and foreign employees, as we talk to directly, there are great talent there, but they have not been promoted to the management level or executive level, and so I would like them to work harder on that. Yeah, thank you for the question. As a person who has worked for a Japanese car company, Nissan, I'm a great believer in Gemba Kanri, I'm a great believer of continuous improvement and Lean Six Sigma and so on. I believe that any process can be improved and continue to be improved. I think over time, management shows that. I think if you look at Mitsui, we've got a management who are very accepting of that principle, and they see the opportunity to improve, to change. Kobayashi-san was just talking about the employees and HR. Younger people are very different to us, if you want to say. They have greater expectations. They have greater need for communication, engagement, involvement. I f you want to optimize, if you want to maximize the skills and experience that they bring, then you need to tailor the organization to that. That's exactly what Mitsui is doing. Moon is an example. Bloom is another example. It's in the very nature of how we physically operate at the frontline. I believe, yes, there are significant opportunities to improve the business and improve the earnings, and Hori-san has described that. I think there's also opportunities to strengthen all of our systems within the company. Of course, you know, governance is an important area, the compliance. Our performance in relation to license to operate generally. Communities are becoming far, far more demanding of companies and businesses and in fact, government. We need to be responsive to that if we want to take advantage of the opportunities that are out there. Continuing to improve the operations, it is a focus of our company, and we are seeing the benefits of that right now. Thank you. Thank you very much. Next question, please. The gentleman in this section, please. Thank you very much. I'd like to ask my question to the two External Directors. Looking at the current business of Mitsui, and looking at the future business of Mitsui, what do you think is the appropriate ratio of External Directors in the Board of Directors? You have nine with five, and less External Directors compared to Internal Directors. In overseas companies, maybe it's 60% or maybe 70% when it comes to the ratio. What is the direction that Mitsui should follow going forward? Thank you very much for your question. That's an interesting question. It's one that we do discuss in the governance committee. I guess there are two comments that I'd make. Firstly, I, as I mentioned earlier, our company believes in consensus. It means even though that you are one member of the board, you have a veto right if there's a critical issue and you feel very, very strongly about it. Clearly, board members are very sensible about how they exercise that, and they do it with a lot of thought, a lot of consideration, and flagging what their position is in relation to that. I think that the other issue is that, quite frankly, the non-executive directors are very noisy people, and they're quite active in putting their point of view. I think it'd be true to say that with every item that the Board discusses, each director will make a comment, and they'll come from a different area, given their skill base or experience. All of that is taken into account. At times, due to the process, another director will build on the comment that one of the other directors has already mentioned. You end up with a very strong result in terms of the discussion and the engagement and the involvement. You know, that's a healthy process. Kobayashi-san. Kobayashi-san, please. Yes. The ratio of External Directors, I think there is a discussion for it, but I believe that it depends on the business of a company. It doesn't mean that having a lot of External Directors is going to be good. It's not that simple. How active the External Directors are, I think, is an important factor. When it comes to External Directors, it's important that they make comments and raise opinions. Whether the chairs or the presidents are willing to listen to the voices of External Directors, I think that is important because that is going to really utilize the value of the External Directors. I think that is an important role. At Mitsui, of course, the External Directors are minority. However, the opinions of External Directors are heard in majority. External Directors ask questions, and the Internal Directors answer the question. Also, if they have an opinion, they do raise opinions as well. I think we are seeing that we're evolving as a BoD. Of course, with the changing society, the factors expected of External Directors going forward is to understand the needs of the society. That generation of External Directors to be included in the BoD is going to be important going forward, especially when it comes to technology. In my generation, I think we are lagging behind in that area. If there are members who can complement in that area, I think that would be much better with the BoD being more activated going forward, and we can add new perspectives by doing so. I'm sure there are many more questions that you would like to ask, but the time has come, so we'd like to end the Q&A session. Thank you very much for your participation. Thank you very much. Thank you very much, Inagaki-san, for moderating this session. Please leave the stage. Thank you. We'd like to take a break. We'll be starting at 3:45, in 15 minutes. Kobayashi-san has talked about the Moon project, the creative lab. We'd like to show you a video introducing you to Moon. During the break, I hope you'll be able to enjoy this video. Thank you. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further, faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further, faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further, faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further, faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further, faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? What if you could be free to set your own course and ask the right questions to find new answers? What if you could focus on people to meet real human needs and experiment to get further faster? What if you could stretch your comfort zone to adopt new ways of working? We are global connectors and can be global creators too. Introducing Moon, an innovation lab that powers the creation of new businesses for Mitsui. Our purpose is to light the way for our creative potential. We leverage our collective imagination to surface the best ideas, provide the resources to make these ideas tangible, and launch them out into the world. Join us. Unlock your creativity and build businesses for the future. Moon is here to light the way for you, for Mitsui, and for the world. At Mitsui, we forge strong connections around the globe. The world is changing fast and becoming increasingly unpredictable. What if you could tap into your innate creativity and design a new future? Thank you very much for waiting. We would now like to present to you the Path to Green Transformation. We have with us Representative Director, Executive Managing Officer, Chief Strategy Officer, Makoto Sato. I am Makoto Sato. I was appointed as CSO this year. I have been very much looking forward to speaking to you all. Today, I will talk to you about our climate change response, focusing on the progress we have made since our ESG day last December. This page shows our greenhouse gas reduction targets. As you see here, GHG impact by 2030 compared to 2020, we would like to halve this. To achieve net zero emissions by 2050, we have slated two goals. We aim to achieve our goal of halving GHG impact by 2030 through initiatives to reduce our emissions, shown here in gray, as well as our absorption and offset volume, shown in green, and our reduction contribution, shown in blue, which will lead to reduced emissions in society. We have shown here our roadmap to halving our GHG impact by 2030. The figures have been updated since last year, the main progress we have made is shown in the orange boxes. Firstly, under our current Medium-Term Management Plan, we established a plan to divest our thermal power generation and coal assets as part of a reconfiguration of our portfolio to address climate change. In October this year, we completed the sale of SMC, our metallurgical coal joint venture in Australia. As CEO Hori explained earlier, we also completed the sale of the Falcon Gas- Fired Power Generation business in Mexico last month. These divestments have reduced GHG emissions by approximately 2 million tons. In terms of reduction contribution projects, we have commenced operations at our wind power generation projects in Morocco and Argentina. Some of the reduction contributions from these projects will not come into effect until the next fiscal year and thereafter. Between March 2024 and March 2030, we now expect a further 2 million tons in reduction contributions compared to what we had forecasted last year. Last year's forecast of a 10 million ton increase in our reduction contribution volume has now been revised to 12 million tons, thanks to our investment this year in renewable energy company, Mainstream, our participation in a large-scale renewable energy project in India, and our investment in Climate Friendly in Australia. We will continue our efforts to halve our GHG impact by 2030. I would like to talk about renewable energy, which is absolutely critical to achieve global decarbonization. We explained our initiatives at last year's ESG Day. Since then, we have made investments in Mainstream, a renewable energy developer, and in a large-scale renewable energy project in India. As a result of such progress, the share of renewable energy in our overall power generation portfolio has increased from 15% last year to 23% today. With regard to Mainstream, project development has been progressing at a faster pace than we expected at the time of our investment. In the past 6 months, the size of the project pipeline has increased by 2 GW to 19 GW. Leveraging our investment in Mainstream, which is a renewable energy developer with scale and speed, we will accelerate the formation of a business cluster with renewable energy at the core, including green hydrogen, ammonia, low-carbon steelmaking, and cleaner marine fuel. This will be achieved through our comprehensive strength, as well as close collaboration with Mainstream and other partners. From here, I will explain our green transformation through which we aim to contribute to a decarbonized society. On the left are our current portfolios related to our green transformation. The figures illustrate how, through collaboration across industries, we will grow these businesses to form larger clusters through to 2030. Our efforts are already beginning to take shape in ways that leverage our strengths in cross-business synergies and expansion into peripheral businesses, such as through the expansion of renewable energy business, considerations regarding optimal renewable energy business cluster formation, and progress towards a final investment decision in the clean ammonia production business. Next, I would like to introduce our business case in Australia. We have historically been involved in upstream resource businesses in Australia, such as LNG, metallurgical coal, and iron ore, providing a stable supply to Japan and other Asian countries. To promote the decarbonization of these businesses, we are in the process of considering the production of blue ammonia using carbon dioxide capture and storage, or CCS, and the utilization of methane gas. Our wood resources business, which includes wood chips used as a material for paper making in Japan, is also one of our long-term, long-time business. In recent years, we have been leveraging our knowledge in this area to expand into afforestation business. By connecting these two streams through emissions credits, we're expanding our businesses that respond to climate change. In Australia, there is an emission credit trading system that trades in Australian carbon credit units or ACCUs. In some cases, resource businesses and other businesses that emit GHGs are required to purchase emissions credits alongside efforts to reduce their own emissions. On the flip side, this provides a significant boost for emission reduction projects, such as those relating to afforestation. As a company that does business on both the demand and supply sides of emissions credits, we see the response to climate change as an opportunity for growth. This year, we decided to invest in Climate Friendly, a carbon credit developer, and to also invest further in New Forests, a company engaged in forestry fund management. Our goal is to create compounded value by combining our knowledge across different industries. We're working with the intention of taking the knowledge we have developed in Australia and utilizing it on a global scale. I will focus on scope 3 GHG emissions in our supply chain. In addition to efforts by individual companies to reduce emissions, we believe it is also important for companies across the supply chain to work together to address climate change. At Mitsui, we have a diverse range of businesses in a multitude of industries. In addition to working to understand our overall scope 3 impact, we're taking steps to reduce emissions in each industry together with our customers and suppliers through the supply chain from upstream to downstream. We're also proactively developing emissions credits initiatives that will further contribute to supply chain emission reductions. As an example, the iron ore business, which CEO Hori spoke about earlier, we are exploring opportunities to collaborate along the supply chain with Rio Tinto, the operator of the Robe River iron ore mine. Now, I would like to talk about our governance structure with respect to climate change. Our Board of Directors oversees our climate change initiatives. In November 2021, the Board approved our Sustainability Policy, which reaffirms our commitment to enhancing our corporate value over the medium to long term through sustainability-focused management. Board of Directors meetings receive and review regular reports on the progress of our climate change initiatives and actively discuss our response to climate change. Free discussion sessions involve External Directors and external audit and supervisory board members, generating a wide range of comments, including the importance of personally recognizing and addressing climate change targets at our respective workplaces. From this fiscal year, we have incorporated the evaluation of ESG into our executive remuneration system for Internal Directors. With regard to climate change, the evaluation is mainly based on the company's progress toward achieving its GHG emission reduction targets. In closing, I will explain the measures to transform our portfolio in response to climate change. We declared our support for the TCFD in 2018. Since then, we have continued to expand our analysis of transition and physical risks. Initially, only business areas with high GHG emissions were included in our analysis. In the fiscal year ended March 2021, we expanded the scope to include business areas where climate change could be considered an opportunity. From this year, in addition to the 2 degree Celsius scenario, we conducted analysis based on 1.5 degree Celsius scenario and disclosed the results. With regards to physical risk, in the fiscal year ended March 2020, we conducted an analysis of assets exceeding a certain amount. Going forward, we plan to use the latest long-term weather forecasting tools to identify assets in our portfolio facing major risks and analyze how to reduce that risk. In the fiscal year ended March 2021, as an internal measure to address climate change, we introduced an internal carbon pricing system to evaluate the impact of individual projects and consider countermeasures based on carbon pricing. Since the fiscal year ended March 2022, we have been operating the Green Business Assessment Working Group, which carries out comprehensive evaluations as part of the screening process of new projects, including qualitative factors such as the strategic significance of initiatives from an environmental perspective. Some of the projects that I have introduced today, such as Climate Friendly and New Forests, were given the green light based on the feedback from the Green Business Assessment Working Group. We will work to maintain and increase the momentum of our business promotion through these continued efforts. That concludes my explanation today. We will continue efforts to reduce our own GHG emissions and promote businesses that contribute to reducing overall emissions in the society. We will also continue to work with our partners throughout all industries in order to seek for new ways to reduce emissions across the supply chain. Thank you very much for your attention. Sato-san, thank you very much. We would now like to proceed to Q&A. Please wait for the microphone and state your name and your affiliation as well. For those of you participating via Zoom, if you do have a question, we will also accept those questions as well. There is a reaction icon. Please click the Raise Hand button. When your turn comes, we request that you unmute yourselves and state your question. We kindly request that you can ask as many times, but one question per round, please. Again, please keep your questions concise because we are simultaneously interpreting the session. The person in the front row, please. Thank you very much for the explanation today. I would like to ask about Mainstream. I feel this is quite interesting because the project itself based on the initial investment, it is actually moving forward quicker. You also showed us the changes in portfolio as well, and I'm sure it's 23% including projects that are underway as well. For Mainstream, because the projects will become more and more online, the 2030 goal, do you believe that this can be realized, and do you feel confident that it will be realized? Mainstream and Mitsui, what type of relationship is the working relationship that has proven to be effective? Thank you very much for the question. 2030, 30%, I feel personally that we can achieve this, and I can say that the probability of achieving this goal is extremely high. So six months, 2 GW have been added. This driving force, I think will further accelerate now how we involve ourselves with this business. One benefit from the Mainstream viewpoint, there are multiple, but there's one benefit that Mainstream deemed is they were a sales and developer type of business. Renewable energy sources or centralized sources were developed, and they were selling that, but now they have shifted their thinking. Let's say they develop 100, 50 of that will be held by them, and then the remaining 50 will be divested. Sales and development. Excuse me, from development and sales format to develop and hold and sell. They have shifted their model. That's on the Mainstream side. In order to hold, they need funding. This is where Mitsui came in. We were incorporated into this formation. Another point is Mitsui is a very unique business because we are very diverse in our businesses that we handle. Green energy, which is obviously the origination of their business. Yes, there might be nuclear power, but green energy is the source. Ammonia, hydrogen, as well as methane gas, as well as low carbon, for instance, as well. Being able to accommodate all of these facets will be a Japanese trading firm. For instance, ammonia, ethanol, as well as steelmaking and so forth, Mitsui is very strong in these areas as well. I do believe that these factors fit perfectly. From the start of development, we have seconded members to the board as well, and also at the executive side as well as the managerial side. We are in communication to make sure that we can evolve our business around the world. Thank you. This means that, since you have been involved, their development pace has heightened. Their development competency, they possess something very, very high, even before we joined. For us, that was the attractiveness. Again, as I mentioned earlier, holding and then operating. In other words, the value chain that they wanted to create. They needed a partner, and they realized that Mitsui would be a very good partner for them. Thank you very much. That was clear. Are there any other questions? Yes, person in the front row, please. Thank you very much for your explanation. One question. The governance structure, you mentioned that ESG factors incorporated into remuneration for executives from this fiscal year. If you look at the most recent integrated report, the way you operate the system is not clear to me as an outsider. For example, currently, the variable part of the remuneration for Internal Directors is 2/3 probably, and to what extent ESG can impact that part. Can you explain more about how you operate the system? Thank you. Thank you for the question. The director's remuneration composition is in our integrated report or our financial statements report to the ministry, this has been disclosure. There are several parts to this. In terms of balance, cash 2/3 and stock the remaining 1/3. As for the stock, which constitute 1/3, the transfer-limited performance-linked stock, a total of JPY 300 million for all directors is the cap, but t he ESG and ROE are linked to that part. The maximum JPY 300 million is the allocation. 80% are linked to ROE, and 20% are linked to ESG. E of the ESG, as I explained in my presentation, is about impact reduction from the GHG and progress toward the net zero target as compared to KPIs. As S of the ESG, it's about the employee satisfaction survey result, and that's the KPI. As for G or governance, the effectiveness evaluation of the Board of Directors, that is what we link to this. This transfer limited performance-linked stock option is how we operate that system. Thank you. Thank you very much for the presentation. The GHG impact net zero, and within this concept, I would like to ask a question as to the extent this covers scope 3. I believe you mentioned that you would like to propel this forward as well. Category 15, which is your invested projects, have been, I think, the targets to date. In your explanation, a low carbon materials, I think that was mentioned as well. For instance, steel making as well as refining as well were given as examples. The products that are sold and at the point of usage of these products, how do you position this within the entire supply chain? Category 11 as well. It is perhaps under the scope of your responsibility, but at the same time it can be a business opportunity as well. Net GHG zero in aiming to attain this goal, to what extent are you willing to challenge yourselves in terms of these categories? Thank you very much for the question. I do believe that this is a very, very good question, and at the same time it is a very difficult question to respond to. I say this because the rules surrounding this topic are yet to be firmly decided. I would like to add some of my comments as well in my response. As you know, and as you said, scope 3, category 15 investments, so that is the numerical, a number or numerical target that we have shown, but for others we have yet to disclose. Looking at the supply chain depiction, category 1 is the actual logistics or the product itself. As you also highlighted, category 10 or 11. 11 will be the processing. 11 would be the actual consumption. How do we understand the numerical outputs? We are internally trying to track this, but how do we count, and at what timing do we disclose? What would be the most appropriate approach? Even within Mitsui, there might be a double or triple count. Which category should we focus on is always a discussion. When we look at this entire chain, how we estimate the numbers, is it by the intensity unit or is it for, the, steel? Is it the consumption? That is some of the approaches that we are taking. For instance, obviously each company is striving to reduce their emission, but currently the numbers that we track do not cover all of that. In terms of non-financial statement accuracy, we believe that perhaps this will not be in alignment with the reality. This is always a struggle or a challenge for us. Scope 3 category numerical tracking, we are proceeding with this, but at the same time, we believe the rules will be further slated and how do we handle double or triple counting will eventually emerge. When that timing comes, we believe that we will be appropriately disclosing in a timely manner. GHG impact 2030, category 15 is included in the numbers. Net zero for 2050, even without the contribution to reduction, we are still aiming for a net zero level. There are some differences. Obviously between 2030 and 2050, our targets do have subtle differences as well. Thank you. Vale S.A. or Kobe Steel, I believe you are doing some various validation activities with them as well. That was what I had in my mind. In contributing to net zero, I think that there's an opportunity to expand or extend these activities as well. Yes. I do hope that we can meet your expectations, and hopefully we can disseminate many projects that will serve that purpose. It's time to close this session. Thank you very much, Sato. Mr. Sato. The evolution of portfolio management, strengthening business management capability by utilizing ROIC. This presentation will be made by Chief Financial Officer, Tetsuya Shigeta. Good afternoon. I am Tetsuya Shigeta, CFO of Mitsui & Co. Today, I will provide an overview of Mitsui's portfolio management, our investment discipline, and how we use ROIC, R-O-I-C, in this context. Please refer to slide 2. Firstly, I will provide an overview of portfolio management. Mitsui has a global portfolio spanning a wide range of industries, and is constantly transforming by creating new businesses, growing them into core businesses, and extending them by linking the core businesses we have grown with peripheral ones as our business model. In this process of transformation, we're managing and monitoring our portfolio with investment discipline appropriate to the characteristics and stage of the portfolio at the time of decision-making for the investments, as well as during the post-investment period. For the discipline in the investment decision-making, please refer to the vertical axis of the create section in the bottom left area of this slide. Firstly, we apply quantitative hurdle rates, such as consolidated IRR of 10% on the USD basis and risk return of 20%. The profitability and feasibility of the business plan forming the basis for the hurdle rates are more important than the hurdles rates themselves, so we verify them in detail. Contractual terms and conditions are also very important, and we frequently ask for renegotiation when the terms are not adequate, even if the numbers are good. We also thoroughly consider geopolitical risks and discuss necessary measures to be taken should we need to mitigate those risks by exercising our imagination capability. In addition, we'll not only ensure consistency with our overall strategy, but also debate how to create synergies and whether the advantages in core businesses can be utilized to expand our business. Furthermore, we also consider potential exit path should there be unanticipated situations. Proposals are examined at relevant meetings according to the size of investment, loan, and guarantee exposure. Mitsui's Council on Investment and Proposals discusses projects with an exposure of more than JPY 5 billion, and Corporate Management Committee discuss projects with an exposure of more than JPY 15 billion. Projects with an exposure value of more than JPY 60 billion are considered by the Board of Directors. The quantitative threshold for placing matters before the Board of Directors was JPY 40 billion until last fiscal year. This threshold was increased to JPY 60 billion from this fiscal year to ensure that the Board has sufficient time to discuss matters that have a significant impact on Mitsui's management based on advice from External Directors. At these meetings, we compare growth investment projects coming from each Business Unit under the framework of management allocation, discuss the priority, and after taking into account comparisons with share purchases as well, we discuss whether the investments should be implemented now or not. When it comes to the grow and extend stages of investment projects, portfolio management is practiced on the company-wide level, with the Portfolio Management Committee playing a central role. The Portfolio Management Committee was established in 2006 as an advisory body to the Corporate Management Committee to serve the purpose of establishment and regular monitoring of company-wide portfolio strategy and establishment of investment and finance policies. Its members consist of several managing officers and heads of corporate staff divisions, and committee meetings are generally held once a month. It is a vital committee that forms the basis of our portfolio management, and its proceedings are disclosed to all employees through the company intranet. Furthermore, the CFO division that I oversee includes the Financial Management and Advisory Division w hich provide functions such as accounting, investment, and business management, and internal control and risk management. These divisions are comprised of professionals who provide support for business divisions, starting from the time of investment decision-making through holding and recycling. It is not limited to these divisions. Over the past 10 years or so, personnel who have transferred in from consulting firms, accounting offices, and investment banks have played prominent roles in analyzing individual projects and improving its quality. Overall, I feel that level of knowledge of our investment operations has risen. Invested projects are verified and monitored during the yearly cycle of portfolio management, which is explained in more detail on the next page. Please refer to the next page. On this slide, I will explain about return on investment capital, or ROIC, which has been introduced in the current medium-term plan as an internal KPI for monitoring of executed investments. Before the start of current Medium-Term Management Plan, Mitsui recognized the issue that while it has externally set ROE of 10% as a KPI, it has not introduced efficiency indicators for evaluation and management of each business unit. Another issue was the need for awareness of making a profit exceed the cost of capital in the medium to long term. We introduced the ROIC to address these issues and to make the Chief Operating Officers of each business unit accountable for investment efficiency. At the beginning of the yearly cycle of a portfolio management, each business unit is asked to explain its position in the Four-Quadrant Analysis of growth and profitability for its business areas, the current status of ROIC in those business areas, and its action plan for the future. You may later refer to Appendix 4 on Four-Quadrant Analysis. At the fiscal year-end review, the results and challenges of the action plans are reviewed and reflected in the evaluations of each business unit. In other words, the cycle is designed to encourage business units to think about specific actions for each business area, individually check on what they are doing or not doing, and inspire business units that are not achieving results to make required decisions and take actions, including withdrawal or business merger with other companies if needed. ROIC has been introduced as a tool to support such framework to carry out dynamic analysis. Please refer to portfolio review utilizing ROIC at the bottom right of the slide. The Portfolio Management Committee has started a verification process using ROIC from the current Medium-Term Management Plan. First, ROIC figures are analyzed company-wide by segment, by business unit, and by business area, and business units estimate not only past and current ROIC, but also for the next 3 years. The analysis starts by applying the ROIC of each business area estimated in this manner based on the four-quadrants classification. The PDCA cycle is used to examine the pros and cons of the transition plan and withdrawals. However, ROIC is not perfect, and it is important to recognize the shortcomings of ROIC analysis. Mitsui conducts a business by mutually connecting trading and business investment, and the working capital used in trading has different risk attributes from those of business investment. For instance, business assuming a growing concern and business with a limited term are not suitable for comparing ROIC in a single year. Therefore rather than comparing businesses with very different attributes on a single year basis using the company-wide ROIC standard and discussing superiority or inferiority, we use ROIC as a tool to apply a Four-Quadrant Analysis to the present situation and future goals of a particular business area over the next few years and have business units consider specific actions to improve the ROIC of that business area. Please refer to appendix 2 and 3 for company-wide ROIC, invested capital, and the ratio of working capital by segment. ROIC is utilized in the analysis of human capital allocation. Specifically, the business areas classified into 4 quadrants are analyzed based on the personnel structure at present and for next 3 years, the percentage of personnel in relation to net profit and the percentage of personnel in relation to invested capital. For example, it is used to ascertain dynamics, such as whether too many personnel have been allocated to business areas with low revenue and low growth, and whether personnel are adequate for improving both revenue and growth potential, leading to the optimal allocation of human capital. Mitsui has actively transferred personnel between different business units from an early stage. The barriers between business units are low, and there is a very large number of people who have experienced multiple business units and multiple corporate divisions, allowing for an aggressive personnel deployment without strain. Finally, ROIC is beginning to be utilized for analysis in the area of greenhouse gas emissions. In particular, oil and gas development, LNG, thermal power generation, metallurgical coal and iron ore businesses are specified as important areas. In the portfolio strategy within the business subject to a scenario analysis, we have performed Four-Quadrant Analysis to develop and discuss GHG strategies based on 2 degrees Celsius and 1.5 degrees Celsius scenario analysis in the medium to long-term plan. Please refer to the asset portfolio review in the bottom left of this slide. As a final section of this slide, please allow me to highlight once again the strong investment discipline that we have always had in place, whereby our holding policy is verified every year for all investments. This slide explains that recycling has become a normal part of our portfolio management. Appendix 1 shows examples of improving portfolio quality within the current Medium-Term Management Plan, and I think you can see that we have been able to recycle an adequate number of assets in the past. Please refer to the next slide. I explained business areas in ROIC analysis, but now I would like to provide greater detail about the number of business areas and typical examples of business areas in each segment to provide a specific image for our four-quadrant analysis. The business areas with different risk attributes are monitored for action plans for the future state of the business as part of a dynamic ROIC analysis. However, decisions are not solely based on business areas subject to ROIC analysis, and we perform analysis on a variety of levels, such as analysis of individual investments through asset portfolio reviews and strategies or business clusters, including synergies between business areas to form growth strategies and exit strategies in the context of the future vision we have at Mitsui. Please refer to the next slide. On this slide, I have provided an overview of Mitsui's portfolio management. In the Create, Grow, Extend phases of business, we will accelerate growth investments through a well-structured allocation of resources by further enforcing investment discipline for individual projects, while always being aware of the downside risks of business investment and exit strategies. We also aim to achieve a double-digit ROE as a standard. In addition, we intend to increase transparency and predictability from the market's perspective, lower the cost of capital, and increase enterprise value by further expanding external disclosure and explanations. Thank you for listening. Thank you very much, Mr. Shigeta. We'd like to move to Q&A session. The microphone will be brought to you from the staff member, so please ask questions. Those of you who are participating on Zoom, and if you have any questions, as was done last time, please push Raise Hand button from the Reaction functions at the bottom of the screen of the Zoom, and please ask one question at one time per person. Please ask your questions. Thank you very much. I have one question. As was explained, the ROIC management was started, and because of that, where have you seen changes? The divisions, business units, are made aware of the risks and whether the projects is working or not. Compared to the past, the recycling asset is increased, and there's a list included. With this ROIC management, recycling amount, which is quite large, in particular in this first year, is it going to be increased? If the, there is a gain on sale of the assets now, increased, are we able to expect the increased level of asset recycling because of ROIC management? Can you explain more about that? Thank you for your question. The recycling as a standard practice. Looking back on the past, recycling at a certain level of amount has been done in each of the segments, this has become the normal standard for our business. Maybe in terms of quantitative criteria, are we going to see increase? I'm not sure yet. This will take more root as a practice, that is how we are feeling. Of course, this is quite specific to our business, in each business segment and business area, through recycling, the cash being generated is not necessary at the discretion of the amount, the allocation, for them that has recycled assets. The head of the business units, the CEO of the business units, has to work to improve the quality of the assets. In order to do that, recycling would become a necessity. That is what we have confirmed. In that sense, the recycling as a standard practice or taking root, we do not have much worry and concern about that process. That's all. Thank you. Thank you. Next question, please. Thank you very much for your presentation. About the slide appendix 2, please. You are talking about the past ROIC and its trends. March 2022 and this current year, we have inflation and increase in the resource prices and yen depreciation, so it is being held high. Within your company, of course, the discussion may be whether this is just one time or not, but there are external changes. When they are exempted, for example, before COVID, it was 4.6% to 4.7%. How much has it increased from that level? What is quantitative review that you have conducted so far? Thank you very much for your question. Of course, the numerator of the ROIC, of course, we use it conveniently, and PAT is being used for that purpose. Looking at the trend of PAT, of course, during the COVID period and during this Medium-Term Management Plan period, we look at the base earning power and also cash-generating power, and we feel that the level has been improved, is now higher during those periods. Of course, we use the IC and of course, whether the denominator has increased. As I have explained earlier, we need to have fixation of the ROIC. We have the one-time working capital that is expanded. That is for one time. However, we are looking at IC and, of course, accumulation of it, and we believe that we have been able to improve the level of PAT as a whole. This 8.8% and 8.7%, don't think this is a standard level. However, looking back from the previous Medium-T erm Management Plan, I believe that the level has gone up. An ROE of 10% to have it consistent and steady at 10%. The ROIC, at the basis of it, we don't manage it at a consistent level. However, we have business areas that support that ROIC level, and we believe that it matches the stability and consistency. We look at the market condition, and when there is advantages, we need to capture that advantage, and that is how our portfolio is being formulated. During this Medium-Term Management Plan, we are currently, personally, recognizing the results of this plan. Thank you very much. Any other questions? Thank you very much for today. In ROIC, the long-term investment, which may not contribute to profit immediately, but future-oriented investments can be concentrated. In terms of calculation, there might be some drop in ROIC, but on a company-wide basis, what sort of discussions do you have to accommodate and coordinate that or just that part? Thank you for the question. Well, the efficiency index, which is ROIC, if you just look at that, because it's so easy to understand, because we have businesses in wide variety of industries, we are beginning to see some drawback of that index. For example, what is quite close to what you have asked about, the cash generating power, whether the business is or projects is generating cash in what timeframe, that should be taken into account. Since we're diversified in the business areas, I suppose in one particular business area, it is taking time to raise cash or increase cash, or there are some differences in levels of ROIC, but in the total management level, we can balance that out so that the goods and goodness, positive and negatives of the each business area. Also growth potential and timeframe, in terms of working on new businesses. Even though we're talking about peripheral businesses, there are some challenges in that. The growth-related discussions is something that we are spending more time. The probability and t he timeframe and growth potential is taken into account, and also increase potential to increase ROIC. Also the Core Operating Cash Flow increase, which is regarded as important KPI. Those are the things that we're taking into account. Thank you. If you look at a particular one in the business area, the growth potential is different. In the short term, what is expected in terms of ROIC might be different. If you cluster them together into one segment, then every year the person who's responsible for that segment would be held responsible for a certain level of ROIC in each fiscal year. Well, for ROIC for a business area might be different from area to area, but you have to increase your ROIC from the present level to the next year and the year after next. As we confirm the objective setting and action plans at the beginning of the fiscal year, and then performance is something that management of that division or business area will be held responsible for. That's how we run the business in every year. Thank you. I'm sorry, time has come, so we'd like to end this session. Thank you very much. Thank you very much, Shigeta-san, for your presentation. Moving on. The last program for today, Natural Gas and LNG business strategy will be explained by Executive Managing Officer Toru Matsui. I am Toru Matsui, and I oversee the Natural Gas and LNG businesses. Starting from this fiscal year, I took charge of Energy Business Unit 1, Energy Business Unit 2, Basic Materials Business Unit, Performance Materials Business Unit, and Americas Business Unit. I hope you have enjoyed Investor Day 2022. This is the last part. I'm sure you have had a very early mornings, but I hope you will bear with me and stay with me till the end of this program. In June of last year, the Investor Day 2021 was held. The external environment has changed very much. Achieving a balance between having a stable energy supply and reducing carbon has become increasingly important with significant changes in the external environment during the year and a half since the previous Investor Day. Today, my intention is to explain our business strategy concerning natural gas and LNG, which is a key to achieving this balance. In addition to outlining the progress of our business investments, I would also like to touch upon our strengths in trading the chemicals business and clean energy such as ammonia, which are further down the value chain. Looking back at changes in the external environment, it continues to be characterized by concerns about the shortage of energy supply, particularly natural gas, in response to the demand recovery after the lifting of COVID-19 restrictions. This trend became more pronounced following concerns over the supply of Russian natural gas to the Europe after the Ukraine crisis began. Volatility of energy prices continues to be high, and we recognize that there are heightened needs for stable supply and functions for adjusting supply and demand in the global market. Meanwhile, in the wake of COP27, we believe that social needs for cleaner energy in response to climate change remain unchanged and are irreversible. I believe humankind is facing a very important and challenging situation as we need to seek a stable energy supply and both the low carbon and decarbonization efforts. In this environment, I strongly feel the importance of engaging in an energy transition that places importance on the three factors of energy security, affordability, and sustainability, also known as the Energy Trilemma. The energy transition will have to be realized in stages over time rather than suddenly, like flicking a switch. In this process, it is believed that natural gas and LNG will play an important role in creating what we call real solutions that enable an affordable and stable energy supply while having relatively little impact on the environment. Mitsui has been engaged in natural gas and LNG as core businesses for a long time. Based on the changes in the external environment I mentioned, we have now positioned them at the center of our strategy, aiming to provide real solutions as part of the energy transition. In addition to business development and promotion, an area Mitsui has worked on for many years and which has proven strengths, we will add an area that we are strengthening by utilizing our logistic functions, the area of LNG trading, and promote them in unison. By keeping low carbon and decarbonization efforts in mind in both existing businesses and new businesses, we would like to achieve both a stable energy supply and a reduction of carbon in response to climate change through a responsible energy transition unique to Mitsui. I would like to explain these initiatives based on our policy. I will explain the progress made in the natural gas and LNG business portfolio. Mitsui's efforts in natural gas and LNG both began in the 1970s with participation in the Abu Dhabi project for LNG and development of a Thai offshore gas field by Mitsui Oil Exploration for natural gas. Since then, we have been involved in LNG projects in Western Australia, Qatar, Oman, Indonesia, Sakhalin-2, and the U.S. As of now, we are participating in 10 different projects in eight countries, seven of which are in operation, and our equity LNG production is at the 8 million tons per year level. We are also in multiple exploration and production activities, including Australia and U.S. Shell for the natural gas business. As you can see from the map here, the most important feature of our natural gas and LNG portfolio is that it is purposefully diversified in terms of geography and business maturity. In addition, our cost-competitive portfolio is a result of our ongoing efforts to reduce costs. With concerns that LNG supply and demand will remain tight, the market is in need for new LNG projects. In response, other than the Mozambique LNG and Arctic LNG 2 projects under development, we aim to contribute to the global LNG supply by connecting the Waitsia gas field to Australia, to the Western Australia LNG plant, expanding Cameron in the U.S., and promoting the Browse project in Australia. We are also in discussions with respect to some other high-quality opportunities. In addition, we have started various low carbon initiatives, such as CO2 emission reduction measures in each of our businesses, and a study to introduce carbon dioxide capture and storage or CCS. Now, I would like to explain another area: LNG trading. Mitsui currently handles approximately 10 million tons of LNG per year under its own name. This accounts for over 10% of annual imports to Japan. In addition to long-term supply from projects in which Mitsui is participating, such as the Cameron LNG, we also endeavor to improve the quality of the trading portfolio by considering regional characteristics and pricing formulae, and including trading contracts with third parties. Furthermore, we utilize a fleet of 11 LNG vessels, including those owned by Mitsui, to deliver LNG in order to meet the needs of customers worldwide, including those in Japan and Europe. Mitsui's trading strengths include the ability to provide functions to both the supply and consumption sides, such as shipping schedule management and pricing formula adjustment. In response to highly volatile market conditions, we utilize our expertise cultivated with other energy products such as oil, and apply it to LNG trading, while simultaneously engaging in stringent risk management. Going forward, we will continue to endeavor to maximize supply flexibility on a global basis through logistics and trading. By aptly combining business and trading, we will create a business model that generates stable revenue, even in a business environment with large market volatility, while also benefiting from upside. Next, I will use the example of Australia to highlight how Mitsui is strengthening and expanding business by building a business cluster, creating organic links with other businesses centering on natural gas and LNG at the core. Mitsui participated in the North West Shelf Project in 1985 and an E&P project in 1995. Since then, we have worked on oil, natural gas and LNG projects in Australia for over a quarter of a century. Mitsui has expanded its powerful operating base rooted in the region and obtained operatorship capabilities in the Waitsia gas field through a corporate acquisition in 2018. Through Mitsui's leadership as an operator, natural gas produced in the gas field has been connected to the North West Shelf Project, in which Mitsui participates, which has enabled us to actively drive the development transition. I believe that this is an added value that we have been able to provide by combining the expertise and the business clusters gained over many years. We are conducting a feasibility study for a clean ammonia business utilizing CCS as the next phase of Waitsia gas field development. We have already completed the primary evolution of the CO2 reservoir as well and are also conducting technical studies of ammonia production facilities and CCS. As our CSO, Mr. Sato, explained earlier, we are also engaged in new business opportunities that will be greatly leveraged by Mitsui's comprehensive strengths, such as the emissions credits business and the green hydrogen business in Australia. We will continue to engage in the core businesses of natural gas and LNG, and at the same time will also push ahead with other businesses that will contribute to the energy transition. Next, I will introduce initiatives in the U.S. as an example of creating a solid natural gas value chain connected from the upstream business to the production of LNG and methanol. Starting with our early participation in the Marcellus Shale gas project in 2010, we later established an energy trading company in U.S. and have expanded our natural gas trading business in the country. As midstream and downstream initiatives originating from U.S. shale gas, we are promoting a methanol production project using natural gas as raw material with Celanese, the largest methanol consumer in the world. Based on our long-term partnership with Celanese, we are continuously contemplating joint initiatives leveraging the strengths of both companies. We also participate in Cameron LNG, a liquefaction and export project which in fact is not directly connected to our upstream equity, starting production and offtake in 2019. Now that three trains are in full operation, it has become a project that contributes to stable supply worldwide, including not only Japan and Asia, but also Europe, where LNG demand is high. It also supplies Fukushima Gas Power, in which Mitsui has a stake, further extending Mitsui's natural gas value chain. In order to meet further LNG demand, we are in discussions about the expansion of Cameron LNG. In addition, there are suitable sites for CCS in the vicinity of this plant, and we would like to aim to contribute to the low carbon development of the project and the surrounding industries. As the world undergoes energy transition, we have built a global presence over many years in a variety of industries. We understand the needs of our customers in each industry and are able to form mutually complementary partnerships with our partners. We believe that we can make a significant contribution to the energy transition by bringing our collective strengths to bear on businesses across industries. As CEO Hori stated at the beginning of this event, we are constantly transforming ourselves by creating new business seeds, growing them into core businesses and extending them by linking the core businesses we have grown with peripheral businesses. By building a cross-industry business group, we provide real solutions to social issues through business, and this is the responsible value creation that is unique to our company. Using our network of customers and partners, the professional colleagues working in the Mitsui Group worldwide and the expertise accumulated there, and the existing high quality global business portfolio as a foundation, we will form a cross-industry business cluster with natural gas and LNG as a core business, providing real solutions. This will contribute to the energy transition in a responsible manner in accordance with Mitsui values. Thank you for listening. Thank you very much, Mr. Matsui. The equity production is 8 million tons, right? Yes, correct. It's 8 million tons. Correction. Thank you very much. Now we'd like to move to the Q&A session. People attending this venue and also through Zoom, you may ask questions. Please limit to one question per person. Any question, please? Thank you very much for your explanation. On page 4, on page 4 of the presentation slide, you talked about LNG trading portfolio and one factor for expanding the performance of this business unit, your explanation was very interesting. Looking at this graph shown on page 4, historically, Mitsui is very strong with energy. But when it comes to LNG trading, the past three to four years, it has grown significantly. What were the creativity that went into that strong growth? Will the profit also increase in the same degree? What was the background to this growth? Thank you. Thank you very much for your question. As you mentioned, when it comes to this LNG trading and its volume, it has increased over the past four years. This is because the LNG industry has changed significantly, and the volume has changed respectively. In 1970, we participated in the Abu Dhabi project, Western Australia, and also in Sakhalin, we have participated in. Historically, LNG, when it comes to power generation and power plants and also thermal power plants, for a long time, we were able to offer a fixed amount. That was a business model that we have consistently pursued. For many of the LNG products, we had to fix the transportation style, dependent on the contract with our customers, the project started. The excessive volume coming from the LNG trading within a contract, for the customers with long-term contract, we can provide upside as a volume, and that is like an option that we offer in a contract and, or within the customer's portfolio, it is supplied, or maybe we can suppress production. Dependent on the customer's needs, that is what we have been doing. That is the kind of LNG trading we have had for a long time. The number of projects increased over the years, and the volume has changed. Of course, the number of vessels for LNG transport has increased, and the number of customers requiring LNG has increased. The spot trade for the excessive volume and the short-term contract has increased accordingly. In the projects that we have at the moment, not all the volume is for long-term contracts. Therefore, with the changes of the industry, we have existing LNG projects, and of course, when we need to renew the contracts in the projects that we participate in, we receive LNG, and as a receiver, we need to accept those LNG volume. In the U.S., the Cameron project, the equity share production, that is something that we offtake, and also sell. That is how we secure the LNG for ourselves. That is how we adapt to the increased LNG trading volume. In addition, we have a contract with the third parties. With the offtake of that equity, that is what we offer. That is the current situation. Thank you very much. As you have just explained, in the LNG market, the scale of the market has increased and spot ratio has increased accordingly. Mitsui has had very good businesses in that change. With this growth, Mitsui will be able to have a preference and competitive edge in this market we can see. What was the reason you were chosen to be the offtaker? With the increase in the trading volume, the biggest factor is the Cameron LNG. When it comes to Cameron LNG, we have the control, and we have the interest, majority interest, and are involved in the management. Among the companies involved in the control, we are having allocation of offtake. By participation in the management, we have that interest for off-taking. I believe those examples will increase in the future. I understood very well. Thank you very much. Thank you very much for the presentation. Energy transition, I think this is the overall trend, and your LNG business was explained in light of this. In your explanation, blue ammonia projects, I believe, were mentioned, and you are also focusing on CCS technology as well. What you're focusing on and the LNG assets that you're planning to expand the lifetime cycle, for instance, in other words, transition for the future, do you believe that the timing of shifting the business? I believe that I know this is long-term, but at this point, it's difficult to deem that shift. When you obviously have to come up with the strategies, if you could disclose to us how you deem the timing of focusing more on LNG in your portfolio. If 2030 is one specific milestone, what is your plan? Thank you very much for the question. As was explained in the presentation today, we do take a long perspective. Natural gas and LNG, we believe in energy transition will continue to play a critical role. Until which timing, it is again very difficult to say, but in preparation for 2050, the transition moving forward to the state, the natural gas and LNG again will play a critical role. For LNG and natural gas businesses, low carbon as well as decarbonization and efforts in this direction have already commenced. The CO2 from the energy plants that have been emitted using CCS technology, it is recovered, it is stored. These are also other aspects that can be considered. For LNG as well, considering the entire lifecycle of production, we need to make sure that it becomes a cleaner energy. For the consumer of LNGs as well, when they produce the power, when they generate the power, again the CO2 emitted during that power generation, again through the very long energy transition, they will also have to come up with strategies as well. This time range, in comparison to other fossil fuels, LNG and natural gases, the CO2 emission is relatively low, and so we want to further suppress this, and I do believe that this will be another upcoming trend. Now having said that, new types of fuels, for instance, as you also mentioned, ammonia or clean ammonia, will be utilized for power generation as well as for marine fuel as well. This is already a trend that we have confirmed. Again, throughout this transition period, we'll see more and more of such activities. Again, for us at Mitsui, we do have skill sets that we have accumulated with the handling of LNG and also with E&P. We also have other insights which can be utilized for CCS as well. Also again, for Mitsui, not just the energy business unit, but we also have a chemicals business unit as well, Basic Materials Business Unit to be exact. They handle ammonia, conventionally, and as you see on the side as well. Here in Japan, the import volume of ammonia, a 60% share is covered. It used to be 80%, but nevertheless, we are a very dominant player and have strengths in this market. By combining the energy, and chemical insights, we believe that our clean ammonia initiatives can proceed as well. We are willing to run these in parallel. By doing so, we can diversify our business portfolios as a result, which means that we can accommodate the changes as well. Thank you. It is time. We'd like to end the session here. Thank you very much, Matsui-san, for your presentation. We have completed all the programs for today. We ask for your cooperation in filling the survey. On the screen or on the webinar, there is a QR code. Please move to the survey page through this QR code. We ask for your cooperation in filling the survey. We may send you an email asking for your cooperation in answering the survey as well. With that, we'd like to end the Investor Day for Mitsui & Co., 2022. Thank you very much for your participation.