Good afternoon. I am Takakazu Uchida, CFO. Thank you for joining us today. I will begin by giving a summary of the Q3 operating results and yearly forecast. I will then hand over to our global controller, Tetsuya Shigeta, for details of our operating results. In the first nine months of 2021, the global economy continued to rebound overall, although the pace of economic recovery slowed due to the rapid spread of the Omicron variant, as well as due to the prolonged supply constraints. Under this business environment, Mitsui continued to achieve strong performance in the Q3 based on our robust global business portfolio. Please turn to page three. I will provide a summary of operating results for the Q3.
Core operating cash flow, COCF, for the period increased by JPY 369.5 to 862.9 billion, and profit for the period increased by JPY 434.4 to 633.3 billion year-on-year, both reaching record historical levels. By firmly taking the upside of commodity market conditions, improving the quality of our business portfolio, and strengthening our earnings base, we achieved high rate of progress in comparison to the previous forecast announced at the time of the Q2's financial results. Based on above, we have upwardly revised our yearly forecast. COCF and profit forecasts were upwardly revised by JPY 170 to 1.09 trillion, and by JPY 120 to 840 billion respectively.
The year-end dividend is increased by JPY 10 per share from our previous forecast to JPY 60 per share, resulting into the annual dividend of JPY 105 per share for March 2022. Further, we intend to formulate our business plan assuming the annual dividend outlook for the last year of MTMP, Medium-term Management Plan, of March 2023 at JPY 120 per share. We will continue to steer the company's management while paying full attention to the business environment, especially the spread of Omicron variant and impact of the US monetary tightening on the global economy. Please turn to page 4. We expect good performance in all segments, and we achieved progress of 94% and 88% respectively against previous forecast for COCF and profit.
In mineral and metal resources, we continue to achieve strong profitability by steadily capturing commodity prices through our well-balanced and highly cost competitive business portfolio and high coking coal price, while the decline in iron ore prices from the historical high in the Q1 also seem to have bottomed out. Furthermore, in addition to chemicals and iron and steel products that continue to demonstrate strong trading functions, increased competitiveness of each business, strengthened earnings base, such as in automotive and healthcare, and FBT&L profit also contributed to performance. In energy, valuation gain loss related to derivative transactions to hedge LNG trading was recognized in advance, but full year performance is expected to exceed previous forecasts. Please turn to page 5. As I mentioned earlier, we have upwardly revised our yearly forecast for COCF to JPY 1.09 trillion.
We upwardly revised the Mineral and Metal Resources segment by JPY 60 billion due to an increase in dividends received from the iron ore and ferroalloys businesses in China, and higher coking coal prices, and the Energy segment by JPY 60 billion due to increase in oil and gas prices and good LNG trading performance. Additionally, as a result of upward revisions in all segments centered on Machinery and Infrastructure and Chemicals, primarily due to an increase in dividends received from affiliates and good operational and trading performance, we have upwardly revised our yearly forecast by JPY 170 billion against JPY 920 billion across the company. Next, turn to page 6. We have upwardly revised our yearly profit forecast in all segments totaling JPY 840 billion.
The upward revision of JPY 120 billion to the previous forecast of JPY 720 billion is mainly due to expansion of base profit as well as commodity and Forex fluctuations. The upward revision of JPY 70 billion reflects continued competitiveness and high rate of progress in both group companies and trading, such as automotive business, ferroalloys businesses in China, LNG, chemicals, and steel products, while the upward revision of JPY 30 billion reflects improvement in earnings resulting from market commodity and Forex fluctuations. The total upward revision is JPY 120 billion, including other valuation factors and asset recycling. Please turn to page seven.
Next, I will explain the action plans for each segment, which were set out at the beginning of the year and which have been organized into strengthening trading functions, competitiveness of existing businesses, and transformation of business portfolio, together with project implementation and contribution to earnings and strategic focus, which have made progress in the current quarter among the priority measures. I will begin by explaining the action plan for the period. Firstly, the demonstration of trading functions amid supply chain disruptions contributed to stable supply in chemicals and steel products and food, which boosted the performance of the current period.
Also, in various businesses such as the automotive business, including Penske Group in the United States and the healthcare centered on IHH, we further enhanced the competitiveness of each business by strengthening the management base, reducing costs, and accelerating the implementation of growth strategy, which we had started even before the spread of COVID-19. Further, we have continued to patiently reduce costs in group companies, and the results of lowering the break-even point have led to improvement of performance in each company. We also made progress in transformation of business portfolio, such as the merger of textiles business of Nippon Steel Trading Corporation with Mitsui Bussan I-Fashion, the acquisition of additional shares in Mitsui Oil Exploration, and the sale of some businesses in the machinery and infrastructure and mineral and metal resources segments.
In project implementation and contribution to earnings, we steadily implemented large projects while taking appropriate measures in each field, even during the pandemic, such as development of a successor deposit of iron ore operations in Australia, expansion of copper operations in Chile, progress on the Arctic LNG 2 project, and commencement of operations on the gas-fired power generation project in Thailand. Next, I will explain progress on the business areas of strategic focus that are defined in the current Medium-term Management Plan. In energy solutions, we made progress in the formation of business leading to reduction of greenhouse gas when responding to ESG, such as participating in Australian forestry carbon credit project, commencing a feasibility study for low carbon ammonia production in Australia and UAE, and promoting mobility electrification through a collaboration agreement by strengthening the capital alliance with Forsee Power, a battery system manufacturer.
In healthcare nutrition, we made progress in nutrition and food while proceeding with participation agreement in Hendrix Genetics, multi-species animal genetics and technology company in the Netherlands, and the participation in ISI Sementi, an Italian vegetable seeds company. In the market Asia, we subscribe to the convertible bonds issued by the holding company of CT Corp in Indonesia and making continuous efforts to improve its enterprise value. We have also steadily changed the level of Mitsui's earnings and implemented growth strategy measures aimed at the future through strengthening of functions and competitiveness in existing business and portfolio transformation. We will continue to accelerate these efforts and realize unceasing transformation and growth. Please turn to page 8. In this section, I will discuss about cash flow allocations for the Q3 of the current fiscal year.
Cash in for the period was JPY 1.076 trillion, comprising COCF of JPY 863 billion, and asset recycling of JPY 213 billion. Principal asset recycling included loan collection in the copper business and sale of the contract manufacturing business of MicroBiopharm Japan Co., Ltd. Cash out was JPY 553 billion, comprising investment and loans of JPY 351 billion, and shareholders return of JPY 202 billion. That is share buybacks of JPY 129 billion and dividend of JPY 73 billion. Main projects for investment and loans included subscription to the convertible bond issued by the holding company of CT Corp, maintenance CapEx for existing oil and gas projects, Australian iron ore and coal operations, LNG and power generation projects under development, and real estate business.
We will continue strategic allocation of funds to gross investments and shareholder returns corresponding to the increases in COCF, comprehensively considering the investment opportunities and the business environment. Please turn to page 9. In the last part of my presentation, I will discuss shareholder returns. In December last year, we decided to perform share buybacks of up to JPY 50 billion, and the total amount executed during current financial year is expected to be JPY 175 billion. As I explained earlier, we have raised the annual dividend forecast to JPY 105 per share with a year-end dividend to be JPY 60 per share for the fiscal year ending March 2022. Based on this, total shareholder returns as a percentage of core operating cash flow for the first two years of the current MTMP is expected to be 32%.
We will continue to consider increasing dividends and also conducting share buybacks in flexible manner corresponding to stable improvement of cash generation ability. That completes my part of the presentation today. I will now hand over to our Global Controller, Tetsuya Shigeta, for details of the Q3 performance.
Thank you. I am Tetsuya Shigeta, Global Controller, and I will now provide details of our operating results for the Q3. Please turn to page 11. First, I will explain the main changes in COCF by segment compared to the previous period. COCF for the period was JPY 862.9 billion, a year-on-year increase of JPY 369.5 billion. In Mineral and Metal Resources, COCF increased by JPY 227.8 to 433 billion, mainly due to higher sales price of iron ore and coal operations in Australia, increase in dividend from Vale, copper operation, and the ferro alloys businesses in China. In Energy, COCF increased by JPY 50.2 to 152.9 billion, mainly due to an increase in oil and gas prices.
In machinery and infrastructure, COCF increased by JPY 48.7 to 113.2 billion, mainly due to good performance of group companies centered on automotive and the increase in the dividends from equity method affiliates. In chemicals, COCF increased by JPY 23.4 to 71.9 billion, mainly due to good performance of group companies and trading following favorable market conditions, and also through optimal response to supply constraints. In iron and steel products, COCF increased by JPY 7.1 to 9.2 billion, mainly from good performance in trading driven by steady steel market.
In Lifestyle, COCF increased by JPY 22.2 to 33.5 billion, mainly due to steady food production business, good performance in grain trading business, and healthcare staffing business in the US, and the sale of Columbia Asia business in India. In Innovation and Corporate Development, COCF declined by JPY 5 to 35.1 billion. Other factors such as expenses, interest, taxes, et cetera, which are not allocated to business segments totaled JPY 14.1 billion. Please turn to page 12. I will now explain the main changes in profit by segment compared to the previous year. Profit for the period increased by JPY 434.4 to 633.3 billion.
In mineral and metal resources, profits increased by JPY 294 to 370.9 billion due to factors such as higher sales price of iron ore and coal operations in Australia and copper operations, an increase in dividends from Vale. In energy, profits increased by one point six billion yen to JPY 28.3 billion, mainly due to increase in oil and gas prices, although there was absence of deferred tax assets resulting from reorganization of US energy subsidiaries recorded in the same period of the previous fiscal year. In machinery and infrastructure, profits increased by JPY 57 to 92.2 billion, mainly due to good performance of the automotive business, primarily in North America, in addition to the absence of the impairment of the rolling stock leasing group company incurred in the previous period.
In Chemicals, profits increased by JPY 19.2 to 51.6 billion, mainly due to good performance of trading business and the methanol business. In Iron and Steel Products, profits increased by JPY 24.1 to 21.3 billion, mainly due to the improvement in operation rate at group companies due to recovery in automotive production and good performance in trading. In Lifestyle, profits increased by JPY 43.2 to 42.8 billion, mainly due to recovery of both salmon and fashion businesses, good performance of grain trading, and an increase in profits in the healthcare business. In Innovation and Corporate Development, profits increased by JPY 4.8 to 42.2 billion, mainly due to sale of multi-family housing property in US
Other factors such as expenses, interest, taxes, et cetera, which are not allocated to business segments totaled JPY 16 billion. Please turn to page 13, which shows the main factors influencing year-on-year changes in profit. Base profit increased by approximately JPY 190 billion. This was mainly due to increase in dividends received from iron ore business and strong profitability of segments such as machinery and infrastructure, lifestyle, chemicals, and iron and steel products. Looking at resource-related costs and volume, profit decreased by approximately JPY 26 billion due to the impact of rising labor costs in the mineral and metal resource business, and also decrease in volume due to the decline of the MOECO Thailand offshore project. Asset recycling resulted in an increase of approximately JPY 11 billion.
In profits, mainly due to the partial sale of shares of PHC Holdings and the sale of multi-family housing property in the United States. In commodity prices Forex, profit increased by approximately JPY 199 billion. Commodity prices increased approximately JPY 80 billion due to steady iron ore prices, approximately JPY 38 billion due to coal prices, and approximately JPY 45 billion due to oil and gas prices. In Forex
Weak yen resulted in an increase in profit of approximately JPY 18 billion. Finally, valuation gain/loss and special factors contributed to increase of approximately JPY 60 billion, mainly due to the absence of impairment loss in the Moatize coal and infrastructure projects incurred in the same period of the previous year. Please turn to page 14. Now let's take a look at the balance sheet as of the end of the Q3 of the current fiscal year. Compared to the end of March 2021, net interest-bearing debt increased by approximately JPY 220 to 3.5 trillion. Meanwhile, shareholder equity increased by approximately JPY 410 to 5 trillion. As a result, net DER became 0.71 times. That concludes my presentation. Thank you.
Thank you for the presentation. I have two questions.
Firstly, I think everybody was surprised about the dividend on page three. The JPY 10 increase in the dividend was decided, and the next fiscal year, JPY 120 per share is expected. One question, previously, there is always a minimum standard set for the dividend. I think that wording was there. This JPY 120 per share as a forecast for the next fiscal year, is it something that we understand as the minimum level of the dividend? Cash generating capability, the for the past based on the past three months of the first half, you have understood that this had been increased, and including forward-looking prospects, you have come up with a JPY 120 per share, I would assume.
This core operating cash generating capability, you have understood that this has been raised, but how did you arrive at JPY 120 per share? That's my first question. Second question is a bit deviating from partially the earnings report. For the next fiscal year, it is, I'm sure, premature, but price fluctuations in resource prices, that's out of your control. For the other factors, are there any concerns if you, when you consider sustainability, including the business sentiment? If you have any concerns, please share them with us. Related to that, deviating from the earnings report, there is an issue of Russia. Your company and Mitsubishi Corp have a relatively higher exposure to the country Russia.
There's uncertainty, and there might be economic sanctions, and there could be a ban on the use of SWIFT remittance system. There are various simulations you may be running, so you may not be able to deduct the dividend from the companies in Russia. That may be one of the concerns. If you have any concerns about Russia for the next fiscal year, please share them with us. Thank you. Takakazu Uchida speaking. First, on the dividend, for the second half of this fiscal year, JPY 60 is the forecast, and this will be decided at the board and then will be determined, approved at the shareholders meeting. You can understand that JPY 60 per share will be paid.
As for the next fiscal year, considering the stability of the dividend, of course, we have to start with the JPY 60 level. That is how we would come up with the business plan for the next fiscal year. For the Medium-term Management Plan, fifth final year would be the next fiscal year. In the next Medium-term Management Plan, we will review the shareholder return policy. We deliberately not used the minimum standard, but JPY 105 for this fiscal year and JPY 120 for the next fiscal year. I hope you can understand that this is a commitment from us to the market.
As for the Mineral & Metal Resources and Energy, we have had stronger numbers. For the Energy segment, the conventional energy LNG dividend, E&P business, oil price increase, those have been taken into account. The Cameron LNG project that has been started and full capacity operation and full contribution has been continued. We can benefit from that. Also, including other LNG projects, as LNG trading functions, there is a scale significant contribution to the profit. Of course, there is some market initiative, but we can expect a stable contribution now.
Also, other than energy and resources, machinery and infrastructure, chemicals, lifestyle, and steel, iron and steel products, innovation and corporate development, the JPY 300 billion or more has been contributed from those segments. Of course, there is a tailwind that we are enjoying currently. The profit improvement in existing business and increased competitiveness, these are the efforts that we have made, and we have seen steady performance in these segments. That's how we have decided that we can expect increased dividend for the mid-term. We have come up with that number of 100 yen. Now, for the economic prospect, the inflationary economic situation, is it going to be temporary or is it going to be continued? That's the question.
From the interim report, as for the future prospect, there is a high uncertainty. That's what we said. Omicron variant increase, those are some of the factors that we are concerned with. In our business segments, the steady business performance is continued. There might be some slowdown in some segments, but the environment is expected to continue for the time being, in my personal view. Of course, US monetary policy and market, if the balance is disrupted, and then there could be some correction. As a main scenario, I think the business segment market sentiment is expected to continue until the end of this year, in terms of timeframe.
For instance, was done the other day, and for the global economy from this year to next year, it is expected to slow down. If you look at the absolute number, compared to the past average numbers, it is going to be higher in terms of recovery of the global economy. As for the inflationary trend, there are many other factors in addition to COVID-19, labor shortage and tight labor market. If you can consider those, even if there is a recovery from COVID-19, we may not be able to expect the situation to be back in the pre-COVID-19 era. As for Russian risk, we are doing business globally, and geopolitical risks are quite close to the heart, and it is affecting our business.
The sanctions, if they are exerted, and then the impact on our businesses will be now under detailed analysis. What sort of actions can we take is something that we have been considering as we put together the project. We have been working with the related authorities in proceeding with the projects. We're assuming various scenarios, but we will be even more cautious and keep a close eye on that. Thank you.
I would like to ask two questions. Especially in the non-resource areas, machinery, lifestyle, and also in chemical, compared to the Q2, I believe the momentum is improving. That is my impression. What made it improve from the Q2? What are the characteristics that you're seeing for the improvement? My second question, it is very difficult, but we are all concerned about the next fiscal year. In the Q4, I think there are improvements that are being forecasted, and we believe that that is achievable. What is the actual ability of the company for making profits? I think, it will depend on the energy, especially related to derivatives. What is the total profit that can be expected? I think, the ability for earnings, is set. Is that correct? For about, two hundred billion yen.
Thank you very much for the question. In the Q3, the resource segments, partly because of PHC and gain of sales, there was one-time profits that were concentrated in the numbers. I believe it is going to be quite flat. I don't think it is big value-wise, but in the US, the steel business is doing well. As for chemicals and also mobility, I think it is quite steady to strong. Of course, for lifestyle, the IHH, I think, it is growing. That is where the contribution is coming from. I don't think I can use the word acceleration. However, from the Q2, gradually we believe there will be a slowdown. We believe that the level of growth has been maintained into the Q3.
As for earnings next fiscal year, I think that's a very difficult question to answer. The level of JPY 200 billion, I think you're talking about mineral and metal resources and also energy. If we times it by four, it will be JPY 800 billion, which is quite similar to the numbers that we have this year. I think we need to monitor and see whether this is achievable.
It will depend on the market, but there are some tailwinds that we're experiencing. With supply and demand becoming tight, compared to the past, I believe that there are expansion of the margins. It will depend on the economic situation. If the margins become normal, I believe that it may stabilize going forward. Compared to the previous levels, whether we will go back to that level next fiscal year, I don't think that will be the case. That is my impression. Thank you very much. This is me speaking very frankly. Other than resources, I think there were areas in which you are lagging behind other companies. Under COVID-19, you have become very strong in these segments.
Of course, these may be the results of the initiatives that you have been taking. Is that the kind of discussion that you may be having in-house? How do you analyze the results yourselves? The improvement, excluding the environmental factors, what is making the performance so good? Can you give us any hint as to what your thoughts are? Yes. We would like to answer in the flow of the comments that you have made. The situation we are seeing at the moment, this has started 4-5 years ago. We have been taking initiatives from our previous Medium-term Management Plan to work on existing business improvements, and also to restructure some of the projects and programs that we had had.
There were campaigns in-house so that we mobilized all our personnel to make our improvements. Under COVID-19, each of the businesses, we had to have a very robust restructuring of the businesses and portfolios. Last fiscal year, around the middle of the last fiscal year, there were some areas in which we saw good recoveries in the initiatives and projects that we had been involved in. These are reflected in the numbers. There were negatives coming from COVID-19, but also strengths in the recovery that we are experiencing. In the pent-up businesses, whether the demand is going to be continuing, that is something that we are monitoring very closely. On the other hand, we need to look at the fiscal measures taken by different countries.
they are focusing their efforts, so whether they are sustainable or not is something that we want to monitor closely going forward as well. Thank you very much. Thank you very much.
Thank you. I have two questions. First question, March 23 dividend level has been raised this time. Of course, in non-resources initiatives, structurally improving profitability, that's one factor. But if you look at the resources, of course, there should be some improvement in order to do this dividend. Iron ore prices originally probably is expected to go below $100, I think, in your estimate. What sort of changes have you seen in that? In the future, next few years, how is your prospect going forward? Can you share that with us? That's my first question. May I ask a second question?
Yes.
The second one is about non-resources, the profitability of the segment. In second and Q3, the performance has been improving further. If you look at the resources business, energy price increase, iron ore price increase leading to profitability improvement, that's not the case with non-resources. Because in the chemicals, if the crude oil prices are increasing, the price increase may improve the profitability to some extent. At some point in time, you may not be able to pass on that price of crude oil price increase to the finished product price. Is there any signs for changes that you're seeing? Or in the next fiscal year, are you assuming something that might change in those segments?
Thank you for your questions. First of all, as for iron ore price prospects, with regard to specific levels, we do not disclose them. In the mid to long term, at the moment, in terms of supply-demand situation, steel production in China is going to go down to some extent. Vale production is going to be revived. In terms of supply-demand, it is going to be a bit soft and weak mid to long term. That's our view. If you look at the short-term basis,
Price movements may look different, but in the mid to long term, the prices are going to soften, and that has not changed. As for the crude oil related like commodities, I think the median level $70 to 90 is the range that we have as a prospect. In that context, with regard to lower limit of the dividend, JPY 120 per share is something that we have come up with. The share buyback that we have been continuing is going to continue.
The share buyback that we're doing, once it is finished, then 1.6 billion shares, excluding the treasury stock, and we have been doing this share buyback, but in JPY 120 per share, JPY 200 billion or less will still be available for dividend payment. JPY 1.09 trillion is the operating cash flow for this fiscal year. If you consider all of these, then energy prices and resource prices compared to the past, if you consider all these, the shareholder return can be sustained. The policy that is going to be sustainable can be done in our financial capability.
If you look at the capital allocation, since we're in the Q3, it is not the exact analysis. If you look at page 8, capital allocation on the right, as of April last year, we have updated, and that's the prospect that you see on this slide. At the moment, as for investment and loans, JPY 1.5 trillion is the existing one. For the next three years, JPY 300 billion worth of new growth investment and loans are expected. If you also include JPY 120 per share in dividend, JPY 340 billion is added to the shareholder return. JPY 640 billion will be allocated as capital allocation.
That's how we are currently. On the other hand, the JPY 2 trillion for cash and JPY 1.7 trillion for... There is an upside, and the JPY 650 billion for asset recycling, and asset recycling is not taken into account in this number. There is some allocation, there's a room for allocation as well. There will be growth strategy investment that can be done. We can ensure sustainability and flexibility for shareholder return as well. The second question is about the non-resources and signs of changes in chemicals. In non-resources segment, once the crude oil prices are up, I think these will be the feedstock for the chemicals.
The non-resources performance has been improving because of the crude oil price increase. At some point in time, you may find it difficult to take enough margin because you may not be able to pass that raw material increase, price increase into the price of your product. Well, from the Q2 to Q3, we haven't sensed any such signs. As you said, the sustainability of resource prices, and also there are many theories about energy prices, but how long can we sustain this level? At some point in time, what you said might happen. On the other hand, if you look at each segment, each segment is performing well.
Food, retail, and raw material price increase, because of the demand recovery slow down or delayed recovery in demand, we may not have reached a similar recovery capability. In the materials, there might be some correction that we might see. In chemicals and iron and steel products, we may be seeing them, but as a trend, it will peak out and then go back to where they are. I don't think that is what's happening. Thank you.
I'd like to ask one question, please. The revenue from trading, the supply chain is very complicated, and the trading revenue is going up, and that was explained during the presentation. With that, how much of the revenue has increased? I don't think it can work going forward, but this fiscal year, how much did you see in the upside of the revenue? That is my question. Thank you very much for the question. We have not been able to do a deep dive analysis. However, when it comes to steel products and also chemicals, of course, we are working with retail and also trading businesses, especially with steel products, we have a North American business, and Gestamp is on the recovery trajectory. With chemicals, methanol business, and also we are also working on chlorine, alkaline, and salt businesses.
These are the businesses that constitute the total businesses. I think it's about 50/50 when it comes to the increased revenue. Sugar and grains, I believe it's approximately half of the increased revenue. Of course, the market is strong, and with the inflationary market environment that is becoming the tailwind. Whether it's sustainable or not, as I mentioned earlier, it will depend on the business environment and the situation of the margins. I hope to have your understanding. The trend is that we hope that we'll be able to sustain it going forward, and we believe that we have a good foundation, and we have been able to polish the functions that we have. That, too, shows the results that we have. Thank you. Thank you very much.
Thank you very much.
Thank you. I have one additional question just for clarification. As for Paiton, I don't think this is included in one of the factors for the revision of the forecast. In the extraordinary shareholders meeting, it has been approved. That's what I heard. What has happened since then? I think this is related to cash allocation that you talked about, and this is also related to JG, and periodic profit and loss is affected. Can you update us on this Paiton issue?
Thank you. The approval from the counterpart has been gained in the shareholders meeting. We have to gain approval from the various related parties, like condition precedent, as condition precedent. Not in this fiscal year, but in the early next fiscal year, we are hoping to get into possibility. In the performance forecast for this fiscal year, Paiton is not included either. In the next Medium-term Management Plan, once we come up with a cash allocation, we will take a look at that. I think we can take that into account at that time.
Thank you.
I would like to ask one question. Thank you. Earlier, the CFO talked about the cash flow allocation in detail, including the possibilities for the future. For loans and investment, the budget achievement, I think we have come halfway, and I believe that the outlook is quite slow. With the management allocation, JPY 300 billion has been allocated. I think that was the explanation given. Towards the next fiscal year, in the long list, the budget and also the cash in, whether it's going to go up, do you think there is room for increases in this area? That is my question. In the strategic focus areas, how much room are there for accumulating projects further? That is my question. Thank you. Yes.
As for the strategic investment, in December, in the ESG Day, we explained that energy solution is the area in which we are working with different initiatives. Healthcare nutrition is another area in which we are seeing accumulation of projects. In the Q4 onwards, there will be projects that are going to show cash outflows. The number of projects under deliberation is increasing in that sense. There are some very positive, proactive areas that we can work on. That is becoming much more clear. Therefore, going forward, we hope that we will explore more opportunities so that we can work on different and various projects. Because this is our Q3 financial results session, we have not been able to have sessions to discuss the initiatives.
we will be working on formulation of the new management plan going forward. I think we will be able to update you on some of the projects going forward. Did that answer your question? Yes. Thank you very much.
Thank you. Thank you very much. I have one question on individual factors. By segment, it's about mineral and metal resources and coal business in Australia. JPY 22.5 billion profit was produced in 3 months of Q3. Is it because of the price increase simply, or was there any special factor? In the Q4 and next fiscal year, what is the current situation, and what is the direction that we can expect? Can you give us any clues?
Thank you very much. The Australian coal business, JPY 22.5 billion. The coking coal prices are plateauing, and that is a factor. In terms of operation, there's no issue. That's exactly what's happening. For the next fiscal year, you start from this for your forecast, or should we forecast your prospect starting from this level for the next fiscal year. For the coking coal price, for the short term, is not sustainable. That's what we believe. In the Q4, and in the next fiscal year, when we make plans, we have to be closely watching the prices. For the Q4 and most recent prices, we are more conservative than the market prices, obviously.
Thank you.