Hello, everyone. I took office as the new president in April. My name is Kosuke Uemura. Thank you very much for taking the time out of your busy schedule to join us today. First of all, I'd like to present the Medium-Term Management Plan 2026, Set for Next Stage. T hen our CFO, Makoto Shibuya, will present the FY 2023 financial results, as well as FY 2024 forecast. First, let's look at the MTP 2023 first. Since April 2021, we started the previous midterm plan, and our vision for 2030 is to become a company that constantly cultivates the businesses and human capital. T he previous midterm plan was the first step toward that. With the strong belief in the ongoing improvement of the corporate value, we have achieved the profit for the year, exceeding JPY 100 billion for the two years in a row.
We achieved all the quantitative targets. In MTP 2023, the PBR, which is an indicator to evaluate corporate value from the stock market, was included in KPIs. Through the dialogue with the market participants, we have expanded the earning power and improved ROE, and improved the transparency of our initiatives, including non-financial side, and tried to lower the cost of capital. As for the shareholder return, in addition to the stable and continuous dividend payment, using the surplus cash flow, we have flexibly conducted the share repurchases. As a result, we achieved a PBR of over 1x in March as the transition point to the next stage. Next, let me talk about the quantitative targets. The results are shown here. There was a positive impact of the coal market, and as I mentioned, we reached or exceeded all the targets.
Also, the surplus cash inflow was allocated to increase new investments. We have expanded the foundation for growth in the new MTP. Let me now explain the results of new investments and their returns since MTP 2017, which will support our revenue growth. Some businesses showed better-than-expected results, and others are being delayed in to make progress. But the investment returns of MTP 2017 and 2020 exceeded the level that we announced at the MTP 2023. The businesses which are being delayed, we have been taking the proactive measures to dispose the unprofitable assets and have made the preparation so that they can start to contribute at early stage in the next MTP. Execution and monetization of the investments are being delayed in some cases due to the pandemic.
I n the final year of the MTP, we are seeing the improvement of the profitability, and we'll make sure that we will increase the profitability in MTP 2026. We would try to make the attractive investments and asset rotation so that we can improve our cost competitiveness and build the leading assets and resilient business portfolio. Now, let me talk about MTP 2026, Set for Next Stage. In this MTP 2026, based upon the results of the MTP 2023, we will start the steady progress toward the vision for 2030. We would have specific quantitative targets for the next stage and make sure that we establish and enhance the business foundations in the MTP, and we call this MTP 2026, Set for Next Stage, as a subheading.
If I may, if I may explain this further, our revenue is above JPY 100 billion, and total equity is close to JPY 1 trillion. The next targets is to double the corporate value. In order to reach that level, the key message is the, to realize the Sojitz growth story. In order to continuously realize the Sojitz growth strategy, we will reinforce the base of growth and enhance the human capital through the aggressive investments. This slide shows the profitability trend from 2015 toward the next stage, showing the profit for the year and core operating cash flow. Due to the pandemic, 2020 number was down, but both profitability and cash generation steadily improved. During the three years of MTP 2023, we have executed investments of JPY 450 billion, exceeding our plan.
In each era and phase, we try to utilize our creativity to hone our Sojitz functions and added values, and by doing so, we gain the growth patterns, and now we have earnings of JPY 100 billion or more in the stable manner. In using this as a base for the next growth, we would try to double our corporate value and achieve a JPY 200 billion profit for the year, ROE of 15%, and market cap of JPY 2 trillion. In MTP 2026, we maintain, in the terms of the balance sheet, we maintain the health of the financial base and execute a continuous asset replacement and new investments. In addition, we have steadily increased our revenue.
The total equity in FY 2014 at the end was JPY 550 billion, and it increased to JPY 920 billion at the end of this term. Without increasing the total assets significantly, we almost doubled ROE compared to 10 years ago. We also improved the profitability much higher. We will continue to work on the asset rotation without any exceptions, and continue to improve the profitability. First, we will try to improve the total equity to above JPY 1 trillion level. In new investments, we would also increase the number of strategic options, including the aggressive growth investment, which is sizable. There have been some seeds sowed during the MTP 2023.
We'll make sure that we nurture them and cultivate them and, harvest them, and so that we can improve the profitability. We would also take some bold resource allocation as an option to take the courageous initiatives for the growth and to create a cluster of attractive businesses, and expand our expectations, and increase the market caps to JPY 3 trillion level, which is double. Let me now talk about quantitative targets. Let me focus on the updates since we announced the basic policy in November last year. As for the investment and financial discipline, under the continued disciplined cash management policy, we would execute the investment of about JPY 600 billion, which is JPY 100 billion higher than what we announced in November last year.
The three-year average financial targets is that 12% or higher for ROE, and the profit for the year of JPY 120 billion. As I mentioned, starting with JPY 100 billion, next target, next stage target is JPY 200 billion. As for the shareholder returns, about 30% of the three-year cumulative core operating cash flow will be used for the return to the shareholders. Dividend policy, as we announced in November last year, the 4.5% of the DOE, or dividend on equity ratio, and the progressive dividend will be paid. As for the share repurchase, based on the cash allocation policy, we will be conducting flexibly and in an agile manner.
Through achieving these quantitative targets, the EPS average, which was JPY 428 in the previous MTP, we would like to increase it to JPY 570 as an average. This means that the annual growth rate would be about 10% for EPS. Now, how are we going to realize those Sojitz Growth Story by achieving those quantitative targets? This shows the basic concept. In order to realize the Sojitz Growth Story, we must leverage our unique strength and competitive edge, and focus on the competitive edge, and this is indispensable, and also enhance the growth foundation and the human capital. The first point is to enhance our growth foundation. We will maximize earning power by refining existing businesses. We have so many businesses as trading company.
We will connect the dots and combine them so that we can create a katamari or a cluster of the businesses. T he second point is to enhance the human capital, which is our biggest weapon and capital. For the next phase of growth, we will make sure that we proactively invest in the human capital so that we can realize the value creation and value up capabilities. A lso, the digital is going to be indispensable to accelerate value creation. We would utilize the power of digital technologies both for businesses and talent, and make sure to earn with digital in all. A lso, we will deepen sustainability and ESG management, which are the key foundation supporting value creation. Through this, we will create the multiple Sojitz growth stories, and this is our basic concept for the next stage.
Next, about our commitment to the ongoing improvement of the corporate value, this will continue in MTP 2026, especially during this midterm management plan. By realizing Sojitz Growth Story, we will try to enhance our market expectation and PER. As you can see on this page, by expanding the earning power and the improvement of the capital efficiency, we would improve the ROE and improve the expected growth expectation, as well as PER, and enhance governance, and make the management more transparent, and lower the cost of capital, and make sure that we have a steady shareholder return, and so that the PBR will always be more than one to improve the corporate value.
Our mission is delivering goods and services where there is a need. This is not something new. This is the consistent mission that was passed down to us from our predecessors more than 100 years ago. With time, necessary goods and services change, but in order to realize our mission, our predecessors tried to forecast the future and transform themselves and challenge themselves. In different areas and the regions, they tried to change themselves in different businesses and created the new path and values. We are still young company, 20 years since the foundation, but this Sojitz business creation DNA stays the same, same as our foundation and origin. Based on the Sojitz DNA inherited from our predecessors, we continue to work on those five factors: speed, co-creation, sharing, market in approach, local partnership, human capital.
B y honing those five factors, we would continuously evolve our unique capabilities and strengths and use them as source of competitiveness to realize sustainable growth. H ere is showing the value creation process. We have various business foundations, including talent and networks. By utilizing our DNA and unique capabilities, seven business divisions engaged in the cross-industry activities with insights, will be organically aligning emerging talent, goods, and ideas, and continuously create values that competitors do not have. We will realize growth with continuously evolving business model and keep creating value sustainably.
As a concept or framework for growth strategy, Kachi Model was established. It is read Kachi in Roman alphabet. Kachi in Japanese means value and win. The vertical axis shows functions and services, and horizontal axis, markets and regions in the four quadrant.
The bottom left shows an area where we already have business initiatives and knowledge. Probability of success is the highest, and we can exert our strength. It consists of businesses with large scale revenue or clusters of businesses. It's K dimension of Katamari. Existing functions and services are developed in new markets, additionally, in A dimension of addition on the bottom right. Our functions and services are transformed in T dimension of transformation on the top left. In these three areas, forming Katamari, centering around K dimension, we can establish a winning pattern and competitive advantages with high probability of success. These are focus areas in the next MTP 2026. The other side of ambidexterity management, exploration, is also valued, but for differentiation from other areas, it is defined as innovation I-space.
To find value creation seeds from unseen infinite business areas, we'll continue to allocate appropriate resources from company-wide perspectives. Regarding external environment, with enhanced uncertainty of global conditions, we selected six Sojitz business themes, including carbon neutrality, DX, growth markets, food value chain, essential infrastructure, and supply chain stability. Regarding strategic focus area. To set strategic focus area in the current MTP, we defined three focus areas of the previous MTP based on our track record, strength, and changing external environments. Firstly, essential infrastructure, generating the base to support well-being of society for living. Secondly, food value chain, including food-related production, material supply, processing, distribution, sales, and use of waste. Thirdly, energy and material solutions to secure energy and materials essential for production and social activities, and contributing to their stable supply and effective use.
To strengthen these focus areas, we'll reinforce indispensable DX, digital transformation, and GX, green transformation, cross-functionally. For expansion into growth markets, we'll expand initiatives in growth markets being established in Vietnam with our strengths. In a digital development period in the previous MTP, we prepared for DX, including reform of awareness and developmental experts. Under the title of Digital in All in the current MTP 2026, we will build structure, promote specific projects, and develop experts further to use digital for all businesses. The last three pillars for DX strategy, firstly, monetization of digital business itself. Through business alliance with Sakura Internet, announced the other day, we'll capture growth. Sojitz Group digital operating company, Nissho Electronics, will be renamed to Sojitz Tech Innovation to reinforce functions and enhance profitability further in July. By also using other M&As, we will aim at Katamari of revenue in digital business.
Secondly, through co-creation with seven business divisions, by combining existing businesses and digital, we'll enhance profitability, value, and competitiveness. Third, reinforcement of company-wide IT infrastructure through expansion of digital experts and use of data and generative AI and others. Green transformation next. To balance business activities and reduction of various environmental impacts, sustainability initiatives are one of priorities in our corporate management. As usual, we'll accelerate initiatives to achieve decarbonization goals, setting a long-term vision sustainability challenge. Besides, under the direct control of the management in January this year, we established a specialized organization by allocating resources proactively to GX contributing businesses. We'll aim at balancing realization of carbon neutral society, sustainable world, and expansion of our profit and corporate value. For decarbonization, there are various fields, areas, and methods. Technology readiness level required invested capital, implementation timing, and time to reach economic efficiency is different in each.
Therefore, based on the actual situation, with our strengths to build value chain and provide solutions, we'll form and promote portfolio for optimum resource allocation. Next, human resources strategy, creating value creation and value up, is a very important pillar of strategy also in the current MTP 2026 to realize Sojitz Growth Story. With vision for 2030, becoming a company that constantly cultivates business and human capital as an outcome, we will develop and reinforce organizations and human resources or human capital capable of leading value creation and value up. First, maximize diverse teams of employees who take on new challenges and achieve growth. Second, strengthen middle management. Third, flexibly allocate human resources. With these as HR strategy, we will refine human capital capable of value creation and value up.
Also, to accelerate the improvement of corporate value as a company-wide initiative, we plan to set up a stock incentive program for awarding employees upon achievement of the current MTP. I will talk about the Sojitz Growth Story. I will explain some of them. A growth pattern or growth story is seen in capturing growing markets, which is being realized in retail businesses in Vietnam, where we have strength. In this story, we make new investments in promising markets where we have knowledge intensively and through collaboration, and from each business, capture market needs and growth. We'll form such growth model beyond Vietnam and aim at growth in line with the growth of each country and region. Our policy is also to focus on India. Next, the Sojitz Growth Story, ever-evolving business models through a marketing approach. We've been transforming various businesses to meet social needs.
For example, in energy business, starting from import trade of oil and gas to export of power generation, plant development, and operation of large power plants. Recently, we've achieved transformation into energy-as-a-service, combining renewable energy and energy saving with the times. It is one growth story where we leverage our DNA, future forecasting, and innovative transformation, and Sojitz strengths, such as marketing approach and partnership. We continue transformation and growth in each business area and market going forward. The last growth story is optimizing the value chain portfolio. With progress of information technologies and globalization in various value chains, functions of intermediate industries are declining. The social value, value is shifting to upstream and downstream in many cases.
As a general trading company, we've been mainly running trading business, but by expanding our businesses in high value-added areas in value chain beyond existing frameworks, with knowledge and contact points in broad industries and markets, we continue to transform our business portfolio and maximize added value. Next, investment policy. For new investments, we plan JPY 600 billion over the three years of MTP. It is an increase of JPY 150 billion from the previous MTP, and we want to allocate funds proactively to growth investments to reach the next stage. By using Kachi Model explained earlier, we realize optimal investment allocation. Out of JPY 600 billion, 50% or JPY 300 billion will go to S investment to strengthen and sustain our business portfolio. S investment increase strength and sustainable stable, and the remaining 50% to X investment, investment for transformation.
We plan to invest with a sense of speed and scale beyond conventional frameworks. This amount includes about JPY 100 billion of investment in DX and GX. In addition to JPY 600 billion, we'll also invest in human capital proactively. Only from this investment newly made in MTP 2026, three-year cumulative profit of JPY 24 billion and average ROI of 4% are planned. As for earnings from investments made in MTP 2023, we expect improvement of profitability as each business is becoming more stable compared to each startup phase. Next, cash flow management. As for cash flow management, by using core operating cash flow and proceeds from asset sales as a source of funds, we continue to implement growth in human capital investment and shareholder returns with discipline.
We also set new cash allocation policy of allocating approximately 70% of core operating cash flow to growth and human capital investment, and approximately 30% to shareholder returns. Allocation in MTP 2026 is as described here. In our current MTP, core cash flow will be JPY -140 billion. However, this negative cash flow will be managed with a cumulative positive core cash flow from previous MTP and MTP before that. Next, measurement and evaluation of value creation. Aiming at ROE of 15% in next stage, we set cash ROIC value creation targets each business division shall aim at, and we'll monitor numbers and take measures for improvement. To achieve company ROE of 13%-14%, CROIC level, each business division should achieve what's set as value creation targets. Please refer to assumptions for MTP 2026 targets as well. Deepening of governance.
As for corporate governance, to strengthen the supervisory function of the Board of Directors and speed up decision-making through delegation of authority to executives, we plan to transition to a company with Audit and Supervisory Committee. The objective of this transformation is enhancement of quality and speed of management decision-making, and achievement of a sustainable growth. The Chairperson of the Board of Directors, who continue to be our Independent Outside Director, will enhance effectiveness of monitoring and auditing conducted by the Board of Directors and Audit and Supervisory Committee to deepen governance further. Executives will strengthen and deepen internal control system. Sound enhancement of corporate value will be secured through management and appropriate risk management on site. Lastly, let me talk about shareholder return policy.
On top of policy and progressive dividend based on shareholder equity DOE, announcing MTP 2026 guidance in November last year, we decided to allocate 30% of core operating cash flow to shareholder returns. Through shareholder equity DOE, stability and predictability of dividends will be enhanced, and amount of dividends will be progressive. We'll implement share buybacks flexibly according to core operating cash flow in three years of MTP. On the following pages, quantitative targets for FY 2024 and others are shown. The details will be explained by CFO Shibuya in his presentation for the forecast. That concludes my presentation on MTP 2026.
Thank you. This is Shibuya speaking. Already, the MTP 2026 was presented to you, so I'd like to just give you the highlights of the financial results. Please refer to the presentation materials for financial results for the year ended March 31st, 2024, and the full year forecast of fiscal year ending March 31st, 2025. On page four, we are showing the FY 2023 summary and 2024 forecast. In FY 2023, the profit for the year was JPY 100.8 billion, same as the revised forecast at the end of Q3. The cash flows were solid. At the end of the term, PBR was 0.94x. During March, it exceeded 1x. The year-end dividend, as planned, is JPY 70 per share, so full year is JPY 135.
As our president explained at the outset, our quantitative targets in MTP 2023 were achieved or exceeded. FY 2024 forecast of the profit for the year is JPY 110 billion, about 9% increase. The dividend is based upon the new shareholder return policy and MTP 2026, and the 4.5% of the equity at the end of March 2024 will be used, and we plan to pay JPY 150 per share per year, so JPY 15 increase. Page five shows the summary of profit or loss. For each item, we are showing the business results difference as well as FY 2024 forecast. This is for your reference. Later on, I would explain the profit for the period by segment.
In FY 2023, the yen weakened significantly from JPY 136 to JPY 145.3 to the dollar as an average. Compared with the previous exchange rate, the positive impact of the yen's depreciation on the profit for the period was about JPY 3 billion. Page six shows the balance sheet comparing March 31st, 2023 and 2024. Total assets was JPY 3,886.9 billion, up JPY 226.1 billion year-on-year. Major reason for the growth is acquisition of the new consolidated subsidiaries, additional investments for the equity method companies, and the Forex impact, same as PL. And, the impact of the weaker yen on the higher assets of the, overseas affiliate was about JPY 130 billion. Half of that is for the U.S. dollar-denominated companies.
Total liabilities was JPY 1,931.3 billion, up JPY 147.1 billion year-on-year. The reasons behind this is mostly same as the asset side. Forex impact was JPY 73 billion, half of the asset side. Total equity attributable to owners of the company after the share buybacks and the dividend payment increased by JPY 86.4 billion year-on-year to JPY 924.1 billion, with higher profit for the year and foreign exchange rate. Page seven shows the major indicators, showing the FY 2023 results and FY 2024 forecast. The shareholder equity, the basis for the next year's dividend, is JPY 724.9 billion .
In FY 2024 forecast, total assets were expected to be JPY 3.1 trillion, total equity JPY 960 billion. As the JPY 200 billion new investments and other asset increase are included in assets, and the profit accumulation and the dividend payment are factored in to the total equity. The forecast is based on the assumption that the yen will appreciate a little. Net DER is slight increase of 0.9x, but as I mentioned in MTP 2026, we will continue with the disciplined cash flow management. As a result, at the end of the MTP, we expect the net DER to reach 0.75x, which is the same as end of FY 2023. ROE, ROA are expected to be 11.7% and 3.7% respectively.
Page eight is the cash flow for your reference. As I mentioned, the cash flow and cash allocation of the MTP 2023 are shown on page nine. With the strong profit growth with cash, we use the core operating cash flow and asset replacement, including the sale of the cross-shareholdings, for new investments for further growth and to expand the shareholder return, leading to a substantial positive core cash flow over the six year. Positive cash, core cash flow will be allocated to investments for further growth in MTP 2026. We will continue to maximize the core operating cash flow.
The main points of new investments and asset replacement are shown on page 10, so please take a look. I'll explain status by segment based on profit for the period. First, for results of FY 2023, please go to page 12. In total, profit was down JPY 10.4 billion, or about 9% to JPY 100.8 billion. The biggest factor for the decrease was a decline in the market prices and increased cost in coal business. Profit decreased JPY 19.2 billion in metals, mineral resources, and recycling. To deal with the cost increase, reduced production volume in FY 2023 shifted to lower cost mining areas, and expect improvement in FY 2024. Profit also decreased in automotive, aerospace, and transportation project and chemicals.
In automotive, in addition to withdrawal from tire distributorship business, sluggish performance in the automotive sales business in the Philippines had a negative impact on profit. For automotive sales business in the Philippines to avoid continued negative trend for 2024 and after, inventory reduction and cost reduction are being accelerated. Besides the newly acquired used car sales business in Australia, sales volume has been sluggish as downward trend of used car market in the country has been continuing for a long time. Profits of aerospace and transportation project decreased due to lower aircraft-related transactions and disposal of inventories and revaluation of part of business, which has been sluggish since the COVID pandemic.
Chemicals has almost no change from the explanation after the third quarter, but profit decreased due to slowdown in demand of chemical products, including plastic resins, impact of changing conditions for raw material gas procurement contract in methanol business, and one-time losses recorded in the first half. On the other hand, profit of retail and consumer service increased significantly due to recovery in domestic retail business and asset replacement in shopping malls. Continued increase in profit is expected even without one-time factors. Profit of infrastructure and healthcare increased significantly due to absence of revaluation of assets recorded in the previous year. Profit also increased in energy saving service business in the U.S. and Australia and others. Profit and consumer industry agricultural business increased due to improvements in profit margin and increase in sales volumes in Thai fertilizer business. On page 13, I'll explain FY 2024 forecast by segment.
FY 2023 figures for aerospace, transportation, and infrastructure, energy solution, and healthcare, and others were restated due to the organizational reforms in April 2024. In automotive, earnings contribution from investments conducted under the previous MTP is expected. Compared to the previous year, earnings contribution from business in Panama will increase. Used car sales business in Australia is steadily improving. Not in line with the initial forecast, we expect significant year-on-year improvement. In aerospace, transportation, and infrastructure, we expect profit to increase in aircraft lease business and aircraft-related transactions, in the absence of disposal of inventories and valuation loss of part of business booked in the previous year. Profit of energy solution and healthcare will increase due to growth expected in energy saving service and other existing businesses. In metals, mineral resources, and recycling, we expect profit to decrease given current coal market conditions.
Although production and sales volume of coking coal is expected to increase, for general market prices of coking coal, we assume $230 compared to $287 on average in FY 2023. For chemicals, although we cannot be optimistic about the business environment, profit will increase partly due to absence of one-time losses recorded in FY 2023 and profitability improvement of each business. In consumer, industry, agricultural business, we expect solid earning contribution from overseas fertilizer business. In retail and consumer service, profit will decrease due to absence of gain and negative goodwill on profit from replacement of shopping malls booked in FY 2023. But we expect earnings growth of domestic and overseas retail, in particular in Vietnam, and recovery in seafood business. Page 14 shows result evaluation and analysis of cash return on invested capital by segment. Please take a look.
As was explained in MTP 2026, in initiatives and results by segment, we will look at profitability and capital efficiency carefully to enhance company total value. Shareholder return is as described on page 15. As it was already explained today in various parts, I'll skip it. Please refer to page 16 for commodity prices, foreign exchange, and interest rate. The delivered materials include segment information and summary of data. Please take a look when you have time. That concludes my presentation.