Thank you very much for attending this meeting. On my side, I would like to explain about the second quarter results and the full-year outlook, and an update on the management policy that we had. Order intake for FY 2025 Q2 increased year-over-year to JPY 3.3 trillion. Order backlog was JPY 11.5 trillion. This was because we were able to capture the North America market, the largest market in the world. Another reason was, this result is that we were able to receive orders for a very large of the company of 2.8 GW. Growth businesses such as Energy Systems and defense, with steady growth in the Plants & Infrastructure business reaching JPY 2.1 trillion. Increased slightly year-over-year to JPY 170 billion. Outlook for the FY 2025 order intake is JPY 6.1 trillion.
We think we will be able to recover the impact coming from Mitsubishi Logisnext, which we made an announcement on September 30th. The major reason behind this is that we anticipate that the energy business is going to increase by JPY 1 trillion compared to the initial guidance. The outlook for business profit is unchanged at JPY 390 billion. Current business environment is unchanged. We think that robust order intake will continue in growth businesses. As for business profit, our basic initiatives that we are conducting. Going forward, to link this robust order intake to profit, more than ever, we will deploy resources in a focused manner, such as adjusting risk and accelerate initiatives for group-wide optimization. Next, I will explain about a new management policy that we announced this May. Our management objective is to realize a virtuous cycle of high profitability and growth investments.
To achieve this objective, we are committed to engaging group-wide optimization and scope expansion with unprecedented speed. I will update about these initiatives. First, about focused resource deployment, which is one aspect of group-wide optimization. Focused deployment of experts in a focused manner and respond speedily. For example, in GTCC, to securely answer strong demand, we are going forward to increase production volume by 30%. We are not only talking about CapEx or human resource recruitment. This is an initiative that we are engaged concurrently to improve productivity, such as shortening lead time. We are putting priority in deploying internal experts to realize this objective.
As for defense business, on August 5th, the Australian government announced that it has selected our company's vessel for its next generation General Purpose Frigate program. To finalize the contract, various efforts are required, including coordination with the Japanese government and the companies involved in the ship's construction, as well as international contract negotiations with the Australian government. Accordingly, we are allocating internal resources to support this project. Regarding domain expansion, since the specific initiatives involve sensitive information closely tied to the mid to long-term growth strategies of each business unit, we will refrain from providing the detailed explanations today. We will share more when the timing is appropriate for public disclosure. As for comprehensive portfolio management for the entire company, each business unit formulates and executes its own mid to long-term growth scenario.
At the same time, decisions on where to prioritize resource allocation are made based on management judgment. As announced on September 30th, we review our capital relationship with Mitsubishi Logisnext. This decision reflects the approach to portfolio management. Based on last month's Japan-U.S. summit meeting, I would like to briefly touch on our business opportunities in the U.S. Our company has long been active in the U.S. market, operating multiple manufacturing and service facilities, including both for GTCC systems and steelmaking machinery. Our sales to the U.S. last year totaled JPY 1.1 trillion, underscoring the importance of the U.S. market to our business. We will continue to prepare thoroughly as a manufacturer to respond to business opportunities in the States. Specifically, we aim to compete by supplying equipment and providing services, primarily energy, to meet the expectations of our U.S. customers.
To achieve our targets for FY 2025 and the 2024 Medium-Term Business Plan, we will steadily advance the initiatives currently underway. As the pace of change in the business environment is expected to accelerate further, we shall strengthen our ability to respond swiftly to emerging channels of change. We shall further accelerate our effort in Innovative Total Optimization to ensure robust. Allow me to move to CFO Hiroshi Nishio for presentation on the financial results. Please go ahead.
I would like to give you some points about utilizing our presentation material. Please look at page three. In terms of the numbers that we are going to use in this presentation, I would like to give you some points. On September 30, we announced about our plan to transfer to Mitsubishi Logisnext, and we are going to call it ML afterwards. With this, basically, order intake, revenue, business profit excludes the numbers of ML. The detailed re-categorization of the numbers are in page 29. Please refer to that slide as well. In terms of the balance sheet, with the total numbers, it includes ML, but there is an additional line for both assets and liabilities categorized as assets or liabilities held for sale. Please take notice of this matter. Then I will talk about the numbers. Please turn to page six. These are the major financial results.
The order intake, revenue, business profit, Ito has mentioned already at the beginning. With the net income, it is JPY 114.9 billion. Year-over-year, it increased by 7%. This is the highest number for the second quarter results. On the top, the free cash flow, JPY 151 billion. This is in the black. Interest-bearing debt, it is JPY 607.7 billion. Although it is not shown on this page, in terms of order backlog, it is JPY 11.5 trillion. It has increased by JPY 1.2 trillion from the last year-end. Turn to page 10. This is about the balance sheet. Total assets is over JPY 7 trillion. One point I want to make is that on the lower side, on the liability side, the second line, there is a line called contract liabilities. This is advanced payment. This increased by JPY 260 billion, substantially from the year-end last year.
This is due to the increased order intake of GTCC. This is the reason why the free cash flow is JPY 151 billion on the positive in the second quarter. Now going to page 11. This is the profit bridge comparing business profit from the previous year. Starting at JPY 188.4 billion last fiscal year, same quarter deducting ML portion, then going to JPY 168 billion. This will be the start of apple-to-apple comparison against last year to this fiscal year. First of all, there is a JPY 76 billion improvement coming from changes in revenue margin improvements, showing that various initiatives improvements have steadily taken, results in all segments. On the other hand, if you go to the right, this is a change in one-time expenses. It is JPY -30 billion. In the Steam Power business, about JPY 30 billion provisions were booked for the one-off expenses.
Out of this JPY 30 billion, JPY 20 billion is for the South African project. I would like to verbally explain the background about this South African project. This is a project that we have inherited when the thermal business was integrated with Hitachi. Construction has continued for more than 10 years, and operations has started by phases over the years. In September 2025, the last unit, number 12 unit, has started operation. We are still consulting with the customer in terms of how to share the cost that has been incurred due to the construction phase at the customer side. This provision was made for this second quarter for accounting purposes.
This was unfortunate, but the one-off cost of JPY 30 billion was provided for. Moving on to page 19. All the segment information is with us per your convenience. Talking about the earnings forecast, starting from slide 19. This is the yearly forecast for the year 2025. The order intake is going to be revised upwards to JPY 6.1 trillion. Revenue remains at JPY 4.8 trillion, and profit from business activities is unchanged at JPY 390 billion. The free cash flow remains at zero. The assumption of the exchange rate is JPY 145 to a $1.00 , and exchange rate sensitivity is $1.6 billion. For the annual forecast, we have been providing the segment information starting from 2021 for the Energy Systems segment. The order intake for the Energy Systems segment has been revised upward because of the stronger performance in GTCC from JPY 2.2 trillion to JPY 3.2 trillion.
The business profit remains unchanged at JPY 240 billion. However, last time, we have provided for a JPY 20 billion risk buffer for one-time expenses. That was included. This time in Q2, that one-off expense has already been recognized in JPY 30 billion, so that no buffer is incorporated for in the second half. Down below is a Plants & Infrastructure. The project's execution is going quite steadily so that business profit has been revised upward from JPY 60 billion to JPY 70 billion. Moving to the slide 22, Logisnext, Thermal & Drive Systems. Due to a slowdown in sales of turbochargers and HVAC units, order intake, revenue, and business profit have all been revised downward. Down below is for the Aircraft, Defense & Space, just remains unchanged. The yearly total, that is all that I mentioned. Just for your information, on slide 23, here we show the defense business size.
This is the chart recorded from 2018. The order intake for 2025 seems to be down compared to the year before, and there are a lot of questions coming regarding that, so that we are explaining the reason why. On 2023, 2024, the level has been quite high. Compared to those two fiscal terms, the current fiscal year is JPY 1.2 trillion, which is down. However, compared to the normal level, it is still quite high level. For your reference as well, on page 26, is the Energy Systems segment on the right below. The after-sales service revenue ratio is shown. Also on page 28 is the business portfolio optimization history, just for your reference. That is all from myself. Thank you very much.