I'm Uemura. Thank you very much for attending today despite your busy schedule. Firstly, I'll explain the progress of the Medium-Term Management Plan 2026. After that, CFO Shibuya will give you details of the financial results. This slide is from the MTP material. MTP 2026 is positioned as MTP to establish and reinforce business foundation in anticipation of next stage. For that purpose, I think it is important to invest in base of growth and human capital activity, continue to create the Sojitz growth story, and show the results to the market. In the first year of the MTP 2026 FY 2024, profit for the year was JPY 110.6 billion, surpassing three-year forecast of JPY 110 billion. Despite negative factors such as market conditions, we expanded businesses and captured profit mainly in energy solutions and healthcare division, chemicals, trades, defense-related business fertilizer, and domestic retail. ROE was 11.7%.
We made steady progress toward achievement of the MTP. Operating cash flow was also firm. Also, in fiscal year 2025, aiming at further profit growth, we target around JPY 120 billion level in real terms. However, by incorporating uncertain external environments such as impacts of U.S. tariff measures, forecast for profit for the year is JPY 115 billion. We incorporated the negative impact of JPY 5 billion due to tariffs and others, and continue to carefully monitor the impact in each business. In MTP 2026, one of the most focused initiatives is creating the Sojitz growth story. To create the Sojitz growth story, it is important to complete expansion of new investments and enhancement of existing businesses. We will also transform portfolio through its creation.
For expansion of new investments, while investing in business fields with sustainable growth potential where we can leverage a competitive edge, we'll create distinctly Sojitz revenue-generating clusters of businesses or Katamari. Also, for existing businesses, by utilizing our strengths and expanding functions, we will bolster earnings power. Besides, we will invite external partners who can be best owners to existing businesses to expand operations further. As well as making and underperforming businesses, we'll improve profit promptly through further analysis and actions. When we judge improvement is difficult, we will exit without hesitation. On the next slide, I'll show you the specific examples. In FY 2024, we invested in multiple non-resource and other businesses in which Sojitz can leverage its competitive edge. Those are the businesses for which we can fully use deep knowledge, experiences, and human network such as partners based on our past initiatives.
I think those businesses will lead to expansion of businesses and winning formula, and we concentrate investments in such businesses. From the top left, in 2021, by investing in McClure in the U.S., we entered energy-saving service business field. To reinforce functions further, in 2024, we acquired Frees tate in the U.S. With this initiative, we aim at reinforcement of customer base and business expansion through cross-selling and others. Also, in Australia, we are developing a similar initiative. As a result, a few years after investment in McClure in the U.S., we achieved more than JPY 5 billion of profit. In FY 2024, we decided to invest in Capella Capital in Australia. Not only scale, but also business model and portfolio transformation can be expected with full use of Sojitz knowledge. Capella is the largest PPP developer in Australia.
By utilizing their knowledge and our functions fully, we'll continuously create new businesses. On the top right, in the retail field, by utilizing our knowledge in domestic retail and marine product businesses, we acquired takeout sushi business in the U.S. With the use of our group's long-term business experiences and partnership in Vietnam, we acquired a commercial food wholesale business in FY 2023. PMI, and onboarding are progressing smoothly, and the business is making a good contribution even amidst sluggish consumption in Vietnam. In meat production and sales business, in which we work with Vinam ilk, the largest dairy company in Vietnam, the meat production facility was completed and operations started on a full scale. For things to enhance existing businesses, we are improving profitability through various initiatives.
In chemical trades, in which profitability growth is remarkable, to elevate our strengths of proposal capabilities to organizational capabilities, we steadily developed proactive human capital and put the right people in the right place, which led to reinforcement of proposal-based sale as an organization. Also, in overseas fertilizer business, we've been enjoying leading market share for many years in Southeast Asia. By refining our strengths of sales capabilities, we continue to reinforce profitability. In addition, we are exploring new fields utilizing digital transformation to reinforce earning power for the future. In the middle, on the other hand, in various existing businesses, for further business expansion and profitability improvement, in some cases, we judge power of external partner is necessary. By transforming partial holdings in existing business to partners we think are the best, we are transforming framework for sustainable growth.
Results were achieved in domestic rental residential business we worked on in the past and marine vessel business we announced the other day. We'll advance initiatives for optimal portfolio. On the right, for existing businesses, which are unfortunately loss-making or suffering declining profitability, we are doing our best to restore their true power. Used car business in Australia hasn't eliminated loss yet, partly due to local used car market conditions, but in FY 2024, restructuring, including closure of unprofitable stores, was completed for profit improvement. Market recovery is still uncertain, but through sharing and implementation of best practices and new store openings, we are taking drastic measures to make up for a delay in elimination of losses. For coking coal business in Australia, all we need to do is to secure a competitive edge through production expansion and cost reductions.
As we are advancing initiatives mainly in non-resource business, the market fluctuation impact on the business is reducing as a whole. By continuing to work on the initiative mentioned above, we create many Sojitz growth stories and lay the foundations for next stage. Now, on digital transformation or DX, starting with MTP 2026, our company has adopted a digital-in-all concept, which is about integrating management strategy and DX and leveraging digital technology in all businesses. Digital-in-all has three pillars: earning with digital technologies, improvement of value with digital technologies, and development of digital infrastructure. Earning with digital technologies means directly monetizing digital technologies. We intend to capitalize on growth through collaboration with SAKURA internet , a strategic partner, and Sojitz- Tech Innovation, a group digital business company. In FY 2024, we invested in an AI startup, Degas.
We will continue to leverage opportunities, including M&A, and co-create with digital partners to pursue further enhancement of our capabilities and earnings power, thereby developing revenue-generating Katamari or cluster of digital businesses. Improvement of value with digital technologies seeks to improve earning power, value, and competitiveness by combining existing businesses with digital through co-creation across the seven business divisions. We are expanding DX projects, including the lead projects such as digital twin and AI image analysis for a bluefin tuna aquaculture, an agricultural platform in Thailand, and a used car distribution platform. Development of digital infrastructure seeks to develop the right infrastructure that enables digital-in-all. This includes standardizing IT infrastructure and networks, as well as reinforcing cybersecurity so as to ensure there is good protection too. We will further accelerate these efforts in FY 2025 and beyond. Now, for EX, energy transformation.
In the new energy field, we assess and select opportunities rigorously so that we focus our efforts on those with good competitive edge and feasibility. In MTP 2026, our focus will be on the following four areas: biofuels such as RNG, Renewable Natural Gas, and SAF, Sustainable Aviation Fuel, carbon offset solutions such as carbon credits, e-fuels, and hydrogen, ammonia and CCS. In particular, priority is given to carbon offset solutions, which have a short time to monetization, and new energies such as RNG, whose use has already been demonstrated. On such proof of new energy, we made a news release yesterday on investment in a biofuel production project in India. Regarding offset solutions, we have announced the launch of a forestry fund, which will generate carbon credits and provide revenue streams with a view to expanding further into related business areas. There's more to come.
For example, we have made additional investment in a Finnish company for hydrogen, and in Vietnam, we are working with Vinam ilk on a study for joint RNG business. Now, on human resources strategy. It is no exaggeration to say that human resources are everything in a general trading company. In MTP 2026, with eyes set on our Next Stage, the basic human resource strategy policy is to build diverse teams of individuals who take on new challenges and achieve growth, strengthen middle management's ability to maximize the full potential of each individual, and to anticipate volatile environment and flexibly allocate human resources. Simply put, we are working to shift gears with regard to human resources and organizational structure, with a primary focus on strengthening individuals and an organization that makes the most of such individuals.
We will improve our frontline operational capabilities with alignment of strategy and measures in parallel with human resources development to enhance individual capabilities such as self-directed and proactive thinking and action, combined with optimized human resources allocation through redeployment. The idea is to have an organization that enables employees to feel that they are developing as individuals and that the job is rewarding, which in turn strengthens the organization and accelerates growth. We believe dynamic people create dynamic business and will continue to further strengthen our human resources base. Now, on shareholder returns. In MTP 2026, our cash allocation policy commits to allocating approximately 30% of core operating cash flow on a cumulative three-year basis to shareholder returns. As for dividends, our policy starting from MTP 2026 calls for stable and predictable progressive dividend payout of 4.5% DOE, or dividend on shareholder equity.
Consequently, we expect a substantial increase in dividends per share. For the fiscal year ending March 2026, we are planning for an annual dividend per share of JPY 165, an increase of approximately 10% year on year. In March this year, we completed the buyback of 6.5 million shares worth approximately JPY 20.9 billion, which was announced back in September 2024. In addition, based on the MTP policy of Shareholder Return at approximately 30% of core operating cash flow and given the current stock price, the company today decided on an additional buyback for JPY 10 billion. Our intent is to continue growing core operating cash flow, which is the source of shareholder returns, and thereby further increase shareholder returns. Finally, I'd like to explain the path towards achieving the FY 2025 targets.
Through the realization of the Sojitz growth story, we have successfully created a large number of Katamari centered around non-resource businesses, and the share of earnings from resource-related businesses has come down. As shown here, in FY 2024, earnings from resource-related businesses decreased due to the decline in coal prices, but earnings from non-resource businesses grew, and profit for the year came in above the initial plan. In our FY 2025 forecast, we have not factored in a rise in resource prices. Nevertheless, we now have an earnings base that can stably generate JPY 100 billion+ , mainly from non-resource businesses, even in the absence of resource price-related benefits. We have factored in the forecast a potential impact of the U.S. reciprocal tariffs of JPY 5 billion. Excluding that impact, we are not far from the assumptions for MTP 2026.
We are making steady progress toward achieving the MTP targets and getting to the Next Stage. We will continue to build a stable earnings base that is resilient to market conditions by realizing the Sojitz Growth Story, making new investments mainly in non-resource areas, and refining existing businesses. That is all from me now. Thank you very much.
I am Shibuya CFO. Now, I'll explain, based on the material, financial results for the year ended March 2025 and three-year forecast of fiscal year ending March 31, 2026. As President explained overall results for FY 2024 and forecast for FY 2025, I'll give an overview of PL, balance sheet and cash flow, progress of new investments, and segment status. Please go to slide 15. This shows FY 2024 summary. I try not to repeat what President said.
Consolidated profit for the year was JPY 110.6 billion, up JPY 9.8 billion year-on-year, exceeding full-year forecast of JPY 110 billion. Operating cash flow was JPY 135.2 billion, up JPY 26 billion year-on-year. ROE/ROA also improved. EPS was JPY 514 per share. We plan to achieve annualized growth rate of 10% from average of MTP 2023 to average of MTP 2026. Toward EPS target of JPY 570 per share in MTP 2026, steady progress was made. Slide 16 shows a summary of profit or loss. Gross profit was JPY 346.8 billion, up JPY 20.8 billion year-on-year, almost in line with the forecast. Page 23. Gross profit by segment is shown. Metals, mineral resources, and recycling was down due to dropping coal prices. In energy solutions and healthcare and retail and consumer service, newly consolidated operating companies and profit expansion of operating companies invested in MTP 2023 contributed to profit increase.
In aerospace, transportation, and infrastructure, chemicals and consumer industry, and agricultural business division, profit of existing businesses increased. In automotive division, profit increased due to contribution of newly consolidated operating companies. Going back to page 16, SG&A expenses increased by JPY 28.4 billion year-on-year. Out of that increase, consolidated subsidiaries and weaker yen accounted for about 60%. Others include increased personnel and business development expenses and other inflation impacts. For other income and expenses, including one-time factors in fiscal year 2024, gain on partial sale of marine vessel businesses, gain on change in equity following public offering by Sakura Internet, gain on sale of overseas industrial park and others were booked. In financial income and cost, interest balance was negatively impacted by rising interest rates only slightly. On the other hand, as dividends received from non-equity investments, including industrial salt-related investment, increased, expenses reduced year-on-year on a net basis.
Share of profit of investment accounted for using the equity method was up year-on-year to JPY 49.6 billion. As a result, consolidated profit for the year was JPY 110.6 billion. For fiscal year 2025, gross profit forecast is JPY 400 billion. We forecast consolidated profit for the year to be JPY 115 billion by factoring in minus JPY 5 billion in preparation for negative impact of U.S. reciprocal tariffs and others. The image of fiscal year 2023, fiscal year 2024, and fiscal year 2025 target is shown on page 13, explained by President. Sojitz referred to that. Slide 17 shows a summary of balance sheet. As you see, total assets increased by about JPY 200 billion from the end of March 2024, mainly due to increased working capital in retail and aerospace and acquisition of new consolidated subsidiaries. Total liabilities increased by about JPY 150 billion.
Trade payables decreased due to the impact of a holiday on the last day of the previous fiscal year. Financing increased significantly in commensurate with working capital. Equity increased by JPY 44.9 billion to JPY 969 billion despite share repurchase and dividends paid. Please look at slide 18 showing FY 2024 results and FY 2025 forecast for major financial indicators. Each financial indicator was in line with the forecast at the end of March 2025. For FY 2025, we forecast total assets of JPY 3.3 trillion and total equity of JPY 1 trillion 20 billion. ROE, ROA, and equity ratio will be flat from FY 2024. Slide 19 shows cash flow. Cash flow from operating activities was minus JPY 16.7 billion due to increasing working capital despite year-on-year increase of JPY 26 billion in core operating cash flow to JPY 135.2 billion.
Increasing working capital was mainly due to outflow in retail and aerospace-related business. Cash flow from investing activities was JPY 94.1 billion- due to outflow for new investments. As a result, Free Cash Flow was JPY 110.8 billion- . Core cash flow is managed within cash flow management policy in MTP 2026. Slide 20 shows a summary of cash inflow and outflow in cash flow management plan in MTP 2026 results for FY 2024 and forecast for FY 2025. In FY 2024, although cash outflow from new investments and recovery from asset replacement were delayed from the initial forecast, it was execution timing difference respectively, and there is no change in MTP three-year aggregate forecast. On slide 21, please look at breakdown of new investment and asset replacement of FY 2024. Slide 22 shows profit contribution from new investment in MTP 2026.
Earning contributions in FY 2024 from MTP 2020 and 2023 investments were below expectation due to declining market and decreased sales volume of coking coal business in Australia, delayed recovery of used car sales business in Australia, and gap from the plan in paper manufacturing in Vietnam. Unfortunately, we expect this trend to continue during MTP 2026 period and revise down expected earnings. As for MTP 2026 new investments, earnings contributions are below expectation due to slight delay in investment execution in FY 2024. On the other hand, in light of the current situation and expected early contribution from large investments return in FY 2025 and after from about JPY 300 billion already invested or to be invested in MTP 2026 can be bigger than return from JPY 300 billion of investments expected when MTP was formulated.
We hope this surplus return and return from additional investments will make up for the shortages and total earnings outside will be realized. Slides 23 to 26 summarize a breakdown by segments. My presentation today will focus on profit for the period. Slide 24 shows profit by segment and year-on-year comparisons. For automotive, automobile sales business in Panama contributed to earnings, but slow recovery of used car sales business in Australia and a decline in sales volume in the U.S., particularly in the first half, resulted in year-on-year decline. The latest forecast of JPY 3 billion was missed due to insufficient recovery in underperforming businesses. For aerospace, transportation, and infrastructure, profit increased thanks to increased transactions related to defense systems and to aircraft and business jets, as well as profits from the sale of overseas industrial parks and certain marine vessel operations. Results exceeded the latest forecast.
For energy solutions and healthcare, profit increased due to increased earnings from energy saving service business and LNG operating company. Results substantially exceeded the latest forecast. For metals, mineral resources, and recycling, profit was down due to declines in market prices and reduced sales volume in the coal business. For chemicals, profit increased due to a rebound from the one-time loss in the previous year, increased trading volume in overseas regional trade, and dividend income from industrial salt-related business. Results exceeded the latest forecast. For consumer industry and agriculture business, profit decreased despite strong performance in the overseas fertilizer business due to sluggishness in the Vietnamese papermaking business and associated impairment loss. Results fell short of the latest forecast. For retail and consumer service, there was earnings contribution from a commercial food wholesaler in Vietnam and strong performance in marine products business and domestic retail business.
However, as an artifact of the gain recorded last year on negative goodwill and sale of domestic commercial facilities, profit was down year-on-year. Results did exceed the latest forecast, however. Next, let me turn to the outlook for the year ending March 2026. That is page 25. The overall profit forecast is JPY 115 billion. We have factored in a provision for negative impact of the U.S. reciprocal tariffs in the amount of JPY 5 billion, which subtracted from a base number of JPY 120 billion gives us JPY 115 billion. This provision is included in the other segment. For metals, mineral resources, and recycling, we expect a year-on-year decline given current market levels. For other segments, we expect higher year-on-year growth than in FY 2024. For automotive, we expect improvements in the sluggish part of the business and earnings contribution from new investments. Let me briefly explain each segment.
For automotive, we have taken a conservative view on the speed of recovery of the used car business in Australia, assuming it to break even over the full year. We have factored in earnings contribution from new investments that we expect to close soon. We will closely monitor the impact of new tariffs in the United States on the North American business for this segment. For aerospace, transportation, and infrastructure, we expect the same level of earnings contribution from FY 2024. Yes, there will be a reaction to one-time gains in the previous year. On the other hand, the previous issue of negative impact of inventory related to the parts of business has been resolved. We expect continued increase in defense system-related and aircraft-related transactions. For energy solutions and healthcare, we expect the same level of earnings contribution.
Profit is to decrease at LNG operating company, but there will be earnings contribution from new investments in addition to steady earnings from existing energy saving service businesses. I have already discussed metals, mineral resources, and recycling, which we expect to be down year-on-year. In addition to sluggish market conditions, we are assuming no significant improvement in production costs and sales volumes. For chemicals, we expect continued growth in existing businesses and contribution from new business areas. For consumer industry and agriculture business, we expect profit growth with strong earnings contribution from the overseas fertilizer business and a reaction to the one-time loss in FY 2024. For retail and consumer service, we expect continued earnings contribution from domestic retail business, as well as earnings growth in marine product business and domestic food business.
We would also hope for recovery in consumption in Vietnam and associated improvement in earnings, but must keep a close eye on potential impacts of U.S. tariffs on domestic demand there. Slide 26 shows the chronology of CROIC, or cash return on investment capital, by segment. In MTP 2026, to achieve ROE of 15% at the next stage, we set CROIC targets for each segment, which we call value creation targets. The numerical targets differ by segment to reflect the specific current situations and business models. The slide provides our analysis on progress towards the targets. Two segments, energy solutions and healthcare and retail and consumer services, retail and consumer service rather, have relatively low CROIC levels after considerable new investments in recent years.
For energy solutions and healthcare, while there are some specificity associated with the business area, the number is on an improvement trend as there exist business models with high CROIC, such as energy saving service operations, which has recently been a focus of new investments. We will strive to achieve the target by speeding up changes in business models based on asset replacements. For retail and consumer service, CROIC has steadily improved due to earnings growth in previous investments, such as marine products and domestic retail businesses. We aim to achieve the target by quickly improving or replacing low-profit businesses. Slide 27 shows actual results and assumptions going forward for commodity prices, foreign exchange, and interest rates. For FY 2025, we assume an average exchange rate of 145 yen to the dollar.
Actually, the yen is currently stronger, and a strong yen would have a negative impact on our company's net income when translating contributions from overseas subsidiaries for consolidation. Simply looking through the U.S. dollar lens alone, a change of 1 yen to the dollar would have a JPY 300 million impact on annual net income. Please refer to the slide for other assumptions, such as the price of coking coal. As always, detailed information for each segment and supplementary data are provided in the following slides. This is all from myself. Thank you very much for your attention.