Kenichi Hori: Thank you very much for your question. As for your first question, for example, in the six months, the new investments made and the investments in the pipeline, they are quite good and stable. So we do have many project candidates. On Page 10, we are showing on the right hand side the projects. And these are something that we have been working on since the COVID-19 outbreak. And after investments are made, what are the value plan that we can formulate is something that we talk with our partners. If that is not completed, we cannot go into the projects. But these projects are new and they do embody such thoughts. So they are small, mid, and large projects in the pipeline. But discipline wise, I think it is working well.
So in reality, the hurdle or risk return profile, the demand from the company is becoming stronger. So in order to have a good flow of cash, we need to be creative to make it possible. So if there are project that is going to exceed our expectation, I think we’ll be able to go into these projects and will be able to utilize the management allocation. When it comes to the core cash flow, if you can gather from the announcements made, I think, it is very solid. Therefore, we believe that there is a core cash flow, which we can multiply by, and we’ll be able to see the shareholder returns, and they may become the sources for the returns going forward. So we like to make a good balance in order to move forward. But, of course, we are conscious of ROE to the investments we need to be enhancing the discipline against the projects.
So if a good projects are not realized, of course, in order to improve the capital efficiency, of course, we need to improve the ROE by moving to better shareholder items. Of course, in order to improve the discipline, of course, we need to look at the directly improving the ROE. So we are closely monitoring these items. So it is not as if we are tending towards either, but improving ROE is a basis for us from both sides. So we would like to be disciplined in these projects. And as for your second question. You talked about Sakhalin and R2, both of them. We need to monitor the geopolitical situation closely, and of course, we need to follow the sanctions of various countries as well. So in order to have a stable supply of energy, these are very important projects.
So we need to look at the current picture as well as the future prospects. As for Sakhalin, of course, we have been able to work with the related parties, and we have been having discussions with them, and of course, with joint venture partners and with different countries, we are continuing the discussion, so that we’ll be able to have stable supply for the users in our country. And as from Mozambique. The other day, I actually went to Mozambique myself. The security situation has improved drastically. And the Area 1, an area close to Area 1, the people living there had to move from that area, however, now they’re returning back to that area, and the administrative services, et cetera, have been recovered. And the basic infrastructure, including food or services, is very important for the people.
But that is progressing very well. And the operator total and the related parties, we are having discussions with at the moment. But as soon as possible, we’d like to restart the construction and the outlook is now more clear. But I want to give you an accurate information. So I cannot give you the timing for the moment. However, we believe the conditions for the restart is now being accumulated, so we hope that we’ll be able to restart in a timely manner. Thank you very much.
