ORIX Corporation American Depositary Shares

It's time to begin the meeting. Thank you for joining us for Oryx Corporation First Quarter Consolidated Financial Results for the three-month period ended June 30th, 2024. I'm from the Investor Relations and Accessibility Department. My name is Nakane. I'll be emceeing this program. And today's attendee is Kazuki Yamamoto, operating officer responsible for investor relations. As we begin, we have a request to the participants. In order to prevent feedback, if you have a mobile phone or other telecommuting devices nearby, please make sure that it is turned off or far away from the telephone. Yamamoto will provide an explanation, and this will be followed by Q&A. The program will last approximately one hour. Mr. Yamamoto, please begin.

Thank you very much for your introduction. And thank you for joining Oryx Group's earnings meeting despite your busy schedule. My name is Yamamoto, Operating Officer in charge of Corporate Planning and Investor Relations. Without further ado, we'd like to get started. Please turn to page two for the Executive Summary. So some of the other four highlights. So the first is on the net income. Q1 net income was up 38% year-over-year to 86.7 billion yen, bringing annualized ROE to 8.7%. This represents 22% of our full-year net income target of 390 billion yen, which is given the seasonality of RX earnings. We view this as a solid start to the year. Finance category in the three categories that we newly introduced in Q4 of last fiscal year continues to generate steady earnings. Profits grew in the insurance segment during Q1. In operation category, airport concessions continue to post earnings growth. Investment category achieved 20% of the full-year profit target, while profits grew significantly at 194% year-over-year thanks to domestic PE exits. The second key point to look at is in inbound tourism. Profits of three inbound related businesses in total was up 78% to 6.9 billion yen year over year. Thanks to aircraft leasing and in aircraft and ships and ongoing profit expansion in the airport concession business, including Kansai International Airport and hotels and in the real estate facilities operation. In aircraft leasing, Both these rates and aircraft prices remain at elevated levels, fueled by expansion in passenger markets and tight supply and demand for aircraft. Oryx has exposure in both the aircraft VC market and sales of pre-owned aircraft on the secondary market, and therefore enjoying better earnings opportunities and foresees strong growth potential in this business. The third point is capital recycling. In addition to a domestic PE exit, or export gains on the sales of investment condos, leading to a total of 35 billion yen in capital gains for the quarter. We also made several key investment decisions that are likely to contribute to future growth, which I will go into some details later on. We expect full-year capital gains to outpace those of the prior year, and we will carefully proceed with each deal as we promote ongoing capital recycling. Now, please enter the next page. As shared at the beginning of this session, Q1 net profit was up 38% year-over-year to 86.7 billion yen, and this represents RX's strongest first quarter since FY18 March and annualized ROE was 8.7%. The right-hand graph shows quarterly net income and ROE trends for the last three years. As you can see, Oryx's next income, net income for Q1 in the past three years were in the 60 billion yen range. So this is the reason why we feel that we made a good start to the fiscal year. In the next few pages, you will notice that we have made some changes to how segment profits and segment assets are calculated. In each case, we have retroactively adjusted data from past fiscal years to reflect the change. For details, please see our supplemental materials, which we'll also release today. Please turn to page 4. This slide explains progress towards our fiscal year forecast in the three categories. The left-hand bar chart shows actual segment profits for FY20 for March end and the target for this year. The right-hand bar chart shows this data for Q1. I will focus on the quarterly data for today's discussion. First, the dark blue finance category is what I want to make use of. Now, at the very top, this dark blue finance category was down slightly by 1% year by year in segment profits to 47.2 billion yen. Please note that Oryx Credit was previously in the finance category, but is now in the investments category from this year. Considering the change, finance category enjoyed a robust quarter, boasted mostly by investment income in the life insurance business and other factors. The category progressed 24% of the full year forecast. Next, please look at the light blue bar, second from the top. This is operation category, which was up 14% year over year in segment profits, which is 53.2 billion yen. The earnings recovery in airport concessions, higher earnings in the European asset management business, and growth in auto all contributed to the expansion. The acquisition of Santoku Senpaku in Q4 last year also provided a profit boost. The operation category achieved 22% of its full-year earnings target, which we feel is a solid result given the seasonality of some of the businesses. Finally, please refer to the pink bar from the top for the investment category, where segment profits was at 36.8 billion yen. While this is just 20% of the full-year target, profit rose significantly by 194% year-over-year. The exit from a domestic PE industry and sales of investment condominiums both contributed, and Oryx was able to grow gains on sales through well-timed exits driven by the weak yen and low Now, as a result, total segment profits were up 28% year over year to 137.3 billion yen. Please turn to page five. The page updates the three categories, ROA and segment asset size data trend provided in Q4 of last year within the three categories. We still aim to improve ROEA through finance category positioned as an earning space and aided by the accelerated shift to an asset-managed model in operation category and further promotion of capital recycling centered on investment category. Please move on to page six. This page shows the matrix table of three categories and 10 segments. We added definition for each of the categories as requested by investors. Please also note that the three businesses in red font indicate changes from the investment category to operations category as of Q1. We later actively, as well as MICE IR, that is, We retroactively adjusted the segment profit figures on pages four to five to reflect these changes. Meanwhile, credit was categorized in finance last year, while it is now in the investment category from this quarter. Pages seven and eight give a summary of information by segment. Profits were up sharply year on year. And if the gain on the sales of the partial stake in OREC's credit is excluded, then segment profits will also up, queue on queue. Details for each of the 10 segments can be found in page 13 and onwards of the presentation material. But I will use pages 7 and 8 to go over the general trends. First is corporate financial services and maintenance leasing segment. Segment profits were down 600 million yen or 3% year-over-year to 19.8 billion yen. Profits were lower in corporate financial services on the absence of one-time gains booked in FY24 March end. On the other hand, auto surpassed last year's record high Q1 performance backed by continued strong sales of used autos and growth in the rental car business, spurred by stronger inbound tourism and rebounding domestic travel. At Rentec, profits were up on higher income from operating leases thanks to replacement demands for PCs. Real estate segment profits were up 36% year-over-year, or 3.7 billion yen to 14 billion yen. The real estate investment and facilities operation business posted a surge in profits thanks to the sales of investment condos. Facilities operations, that is hotels and inns, also sustained favorable earnings. Please note that MICE IR business is now part of the real estate segment, which has resulted in slightly higher costs year over year. The PE investment and concession segment Profit was up 455% year-over-year to 32 billion yen, 26 billion yen increase year-over-year. PE investment business earnings grew sharply with the sales of Sasa AR Holdings as well as higher profit contributions fueled by earnings growth at existing industries, including DHC. The concessions unit. Profit was also higher on growth in international passenger numbers at Kansai International Airport and an increase in non-aerial revenues fueled by new shopping facilities opened at the airport. On page 8, you can see that PE investment and concession assets fell by 9%, which is mainly due to the sales of Sasai Air Holdings.

Please go back to the environment energy segment. This segment reported losses of 500 million, down 5.5 billion year-on-year. In Japan, costs rose for rebuilding of existing facilities, as with first quarter, FY24 March, power generation revenues fell due to output caps at solar plants in some regions. Overseas renewable energy tends to be seasonally weak during Q1. In addition to this, profits were lower owing to the costs associated with past flood damage at an equity method affiliate. In Europe, natural gas inventories piled up following a record warm winter, which resulted in lower wholesale electricity prices. However, we expect Europe-wide LNG inventory adjustments to run their course soon. Insurance segment profits were up 2.5 billion yen, or 13% year-on-year, to 21.9 billion yen. Thanks to earnings gains from asset management for trade application in life insurance, insurance segment profits surpassed last year's robust performance. Growth in life insurance premiums also contributed. The banking and the credit segment recorded a 23% year-on-year or 2 billion yen decline in profits to 6.4 billion yen. This was mostly due to lower profit contributions from OREC's credit owing to a partial sale of our stake in the business. Oryx Bank saw higher long-term prime rates applying to loans resulting in an increase in financial income. Segment assets were lower owing to the sale of our credit business. However, the lending balance rose on growth in corporate loans in key assets, key areas such as renewable energy, and loan securitizations continue and trust assets are growing. We continue to prioritize improvements in profitability while efficiently turning over assets. Please note that with the sale of Oryx Credit, it is now an equity method affiliate instead of subsidiary, but it is still included in this segment. The aircraft and ship segment posted a 4.1 billion yen increase, or 54% jump in segment profits, to 11.8 billion yen. At aircraft and avalon, profits were up last year thanks to stronger passenger demand globally, and quarter-by-quarter profits were down sharply in aircraft in the absence of investment gains. but the profit trajectory remains positive. In ships, profits were much higher with the addition of a Santoku Senpaku, which was acquired in the fourth quarter, FY24 March to Oryx Group. Segment assets were up by 135.3 billion yen, even excluding changes in forex. owing to an increase in aircraft purchases and Avalon profit contributions. From this quarter, we will disclose aircraft and ship segment data broken down into three business units, namely aircraft, ships, and Avalon. Oryx USA segment posted 3% earnings decline in profits to 11.8 billion yen. In light of the U.S. business climate, we continue to carefully manage risks for both new deals and existing investments. Through these risk management efforts, we have been able to control the balance of non-performing loans within expected levels. Also, as we broked larger impairment during Q4 of last fiscal year, credit costs were minimum during the first quarter. Over the three business lines, private credit posted stable growth in financial income, but the real estate and PE businesses are in slump. This is the reason for lower profits. Segment assets were down, excluding the impact of exchange in FX. and the details are shown by business line on page 28 for your reference. Oryx Europe segment profits were up 4 billion yen or 56% year-on-year to 11.2 billion yen. Segment profits were up substantially on well-timed growth in fee income and the expansion in under management. In the Asia and Australia segment, profits were down ¥2 billion to ¥8.9 billion. However, this is mostly due to the absence of valuation gains at an affiliate booked in the previous fiscal year. In ASEAN countries, the business climate is healthy In South Korea, India, and Australia, new lease executions for auto are growing, while financial income and operating lease income is also expanding. Assets in this segment rose by 93.7 billion yen, but 91.5 billion yen of this was due to FX change. We remain cautious on Greater China, and the segment assets for this region are lower, excluding FX impact. That's all about the explanation for each segment. Now please turn to page nine, and I would like to explain the key topics. Starting with inbound tourism. We grouped the aircraft and ships, real estate facilities, operations, and airport concession businesses into the inbound tourist-related category as they took earnings hit following the pandemic but are seeing a strong recovery thanks to inbound tourism demand and growth in global travel demand. Segment profit trends of these three businesses are shown on the left and right. Aircraft and ships, pink. Concession business, grey, have purchased a particularly strong recovery, as you can see. Q1 segment profits for these three businesses were up. 78% year-on-year to 57.7 billion yen. In aircraft leasing, as I mentioned before, tight supply demand for jets has led to not only higher rates, as you can see on the upper right graph, but also rising prices for aircraft is contributing And we see steady growth potential here for Oryx as the secondary market is one of our areas of expertise. Please look at the lower right graph on the right. Visitor arrivals to Japan continue to outpace 2019 levels from all countries and regions except China. And also the number of visitors from the China mainland is recovering. At Kansai International Airport, new shopping venues that were part of the large scale of innovation during the pandemic have opened, and the non-aero revenues are increasing. Expo 2025 is coming to Osaka next year, and we anticipate even greater increases in inbound tourism as a result. Capacity additions made to the airport as part of innovation should help boost earnings. Please note that Kansai Airport's results are posted to Oryx Group earnings on a three-month lag. The Q1 results reflect the January through March period. Let's move to the next topic, which is capital recycling. In Q1, Oryx posted 35 billion yen in capital gains. The cash inflow of 135 billion yen from these transactions have been used for investments in growth areas such as domestic real estate, overseas renewable energy projects, and the aircraft purchases. Since our last earnings call in May, we are moving forward with many transactions as anticipated. New investments are shown in the blue box on the bottom right-hand side. And over the last three months, Oryx has made multiple investments that will continue to contribute to future growth. By accelerating capital recycling based on our value creation model, we expect capital gains of FY25 March to exceed those in the prior year. We continue to work on to achieve the best pricing and conditions for each individual deal. Please turn to the next page. This is a breakdown of our segment profits. And this is base profit versus investment gains, separated as usual. Please turn to the quarterly trend on the right-hand side. Base profit is blank blue, investment gains is in light blue. Base profits rose 6% year-on-year to ¥103.8 billion, while investment gains were up 261% year-on-year to ¥33.5 billion. Looking at past Q1 results, we feel that this represents a strong start for FY25 March, both base profits and investment gains. by capturing market timing. And you can see that active initiatives are being taken. ORICs plans to respond flexibly to changes in the macro climate, such as interest rates and the FX. And our financial strategy remain unchanged from the details outlined by our CEO, Makoto Inoue, in our May earnings release. We continue to work toward providing easy to understand disclosure and explanations in an effort to deepen investors' understanding of Oryx, despite the quick changes in the market. Q1 results were largely in line with our expectations. For Q2 and beyond, we will endeavour to improve company-wide profitability, utilising the stable earning space of the financial category and through growth opportunities and operational despite some uncertainties. First, we'll be focusing on achieving our 390 billion yen net income target for FY25 March and continue with investments that will contribute to future growth in the following years. And that's all from me. Thank you very much for your kind attention.

We would now like to proceed to Q&A. If you have any questions, please press 1 after asterisk on your telephone keypad. After your name is announced, please ask your question. If you wish to cancel the question, please press the star key, then press 2. Ask the question. We would like to ask you to refrain from asking more than one question. So from SMBC, Nico Muraki-san, over to you. Muraki, this is from SMBC Niko. So the market fluctuation, how does it affect your earnings is what I want to ask you. On page 45 to the right-hand side, so there is a sensitivity to forex as compared to March end. So it is yen has depreciated or appreciated further. So that is about the $16 billion of depreciation adversity, I think, that you're experiencing. So if the United States is going to go into recession and the Fed and ECB is going to cut their interest rate, then what would be the impact to your earnings, whether it be to the positive or negative? Thank you. Thank you for the question. As you have said, as we stand now, as to the sensitivity to Forex, so the current investment as well as loan extension, in fact, is at the basis. And we have indicated a plus and minus of 2 billion yen. And therefore, what Murakami-san said is true. So if there was to be any changes in the policy, especially for U.S. dollars as well as euro, interest rate cut should work out to be positive for us. It will be a tailwind for our company. Whereas for euro, the interest rate In actuality, the decline of the interest rate so far, in fact, has been supportive to the recovery of our earnings. And with regard to aircraft-related businesses, it will work out to be positive as well. With regard to USD, it is the same. So the same can be said to be true. And also private equity and also real estate. As of now, we have been refraining from making new investment. We have been continuing our activities so far, but I think we will be able to be provided with some breathing space. But of course, it is kind of difficult to indicate the impact in a quantified manner at this point in time. However, these monetary policy changes can be captured as a great opportunity for our earnings So we have to make sure that we'll be able to capture that as an opportunity, both in European market as well as U.S. market. I don't know whether I have been able to answer to your question in a straightforward manner because the market is still kind of going through changes. But that is all for myself. Thank you. Well, thank you for your answer. So here in Japan, so investment to private equity and also exit in real estate, With regard to that, so it is not correlated to NSA 225, but in what kind of condition would you find it difficult to generate any gains on sales, do you think? Well, just as you have said or asked, especially with regard to real estate businesses, so you know, there are certain, of course, funds that we would have to continue to manage. So we would have to perhaps increase the amount of wait and see. So such as investment condos this year, we were able to enjoy a timely kind of sales, which had exceeded or outpaced my initial expectations. And that is... the depreciation of yen and also low interest rate were supportive of these initiatives on our part. However, the adjustment up until now, at one point in time, as compared to the timing when it was 110 yen or 120 yen, in terms of the further space of growth, I think we still have some more space that we can enjoy growth because the expectations of investors would continue to remain to be unchanged. So therefore, the pipeline deals that we can proceed with can be continued at a similar pace for now. But especially the investment in PEs, especially SMEs and SMEs, we would have to be affected by the higher interest rate. However, because of the positive turnaround of the economy, we can expect them to generate more profit. And that is true with our investees as well. They are beginning to show some signs of recovery in their earnings. So therefore, we'll be able to not just receive any negative impact from the higher interest rate. I don't think the magnitude of impact could be that large. That is all. Okay, thank you very much. That was very helpful.

Thank you. Diver Securities, Watanabe-san, please ask your question. Yes, this is Watanabe, Diver Securities. Panasonic Connect, projector business, you have obtained this. And equity investment and profit contribution size, what kind of synergy do you expect? Can you please outline this, please? Thank you for your question. As you have mentioned, from Panasonic Connect, 80% of the projected business is transferred to us. And with regard to this project, we have mentioned several times in the past, we are positioning this as a carve-out investment from a large company. So PE expertise can be leveraged, I and some aspects will be new to us as well. As you can see in the report, the transfer price, enterprise value, 118.5 billion yen is mentioned, but this actually includes loans. So our actual investment is different from this number. And we are not disclosing this number yet because we will... it will take some more time before the deal can be closed. I hope you understand the situation. As for profitability, because this is a carve-out project, because of that nature, this means that compared to the conventional investment project, it may take time for this time to be profitable, to increase in profitability, because the size of the business and the number of employees and other aspects of this project are larger than traditional. So it may take time before this can contribute to profitability. But expected ROI in the end will not differ materially from the traditional deals. We believe that there is a good future potential for the return and we will continue to focus on this and Together with the sellers, we will continue to proceed with the process up until the close of this deal. Thank you. What about business synergy? What do you expect? What about synergy with Toshiba or synergy in terms of MICE IR? Do you have any comments? Thank you for your question. When we do PE investments, synergy with existing business is not necessarily included in a valuation. And therefore, we believe that this is going to be a potential upside. Specific events, specific planning, well, it will be impacted by the future trend. So we should not rely on just one factor that would lead us to the wrong decision. And therefore, together with the seller, we are basically assuming this is going to be a standalone business. And rather than synergy, we can have areas of cooperation. So we have a PE know-how from the past, which means that we have an experience of hands-on investments in the past. And Oryx has its own unique financial perspective, which can be reflected in this project and that should contribute for future growth. I know that this doesn't directly answer your question, But this is how we assess, evaluate our investments. That's very clear. Thank you very much. Thank you for the question.

The next person is from Mizuho Securities. Sakamaki-san, over to you. This is Sakamaki from Mizuho Securities. Thank you for the opportunity. So first, with regard to your U.S. businesses, the risk as far as opportunity, If the rate cuts is going to start in the United States, you may be able to start enjoying a growth potential. But is there any kind of timeline that you have in your mind? Because we don't know how much of the cuts will be conducted and also whether there will be a recession in the U.S. or not. And also, in terms of the frequency of the rate cuts, at what timing is if you have any ideas to the timeline and what kind of impacts can be brought about as a result of such timeline. Thank you. So, well, then, in that case, if I could refer to page 28, you can see the breakdown of the businesses. Please allow me to refer to this page. And as of now, this is just maybe limited to the impression, but let me answer to your question. So the credit market in the United States To a certain extent, we can start to see the signs of recovery. And therefore, our investment as well as our own extension businesses can enjoy expansion of the spread. And moreover, as being shown, NXT Capital as well as Signal Peak, in fact, we can make use of the funds that have been provided by our investors and And that would perhaps accelerate the willingness to invest on the part of those investors as well. And also, if there was to be an interest rate cut in the United States, that may translate into the recovery of the market, and that may contribute to the earnings recovery, and maybe in the second half of next year or so. And as to the real estate businesses, in actual fact, we cannot, of course, foresee how much of a decline can be expected for the long-term interest rate. So it is very much to do with the policy rate and how does it affect the development deals. So that is what we cannot foresee as to the magnitude, as far as the impact. And so we would have to foresee how the policy is going to trend, especially in light of the presidential election in the United States, But as we look back at the past years, at movement, as far as Boston Financial Investment, the mortgage investment levels that we used to enjoy in the past, maybe we would have to watch over the development in the next one to two years. On the other hand, as to PE, private equity, especially the middle market in the United States, in the general businesses or service businesses, their earnings recovery, and also the M&A business recovery related to such recovery of the market, it may take a little while. So therefore, we would have to continue to be on the defensive side for now. So the impact to the earnings of the industries is one thing, but on the other hand, the private equity investment really... on the part of the investors, we have to see the terms and conditions becoming a little more clear and transparent because it remains to be uncertain still. So credit-related businesses, we think that the pickup is going to be a little earlier, whereas mortgages may take a little while until we can see a short recovery in the market, that is all. Thank you very much for a detailed explanation. Thank you. Thank you.

JPMorgan Securities. Santosan, please ask your question. Yes, just one question about the non-performing assets or asset quality. What is the current situation and the future risks? What is your view on the future risks? In the appendix, page 27, I can see the non-performing. And for the individual rooms, the non-performing is increasing. The ratio increases 2.8%. Compared to pre-COVID, I believe that this ratio is probably the highest that you have had for a while. So where do you see the non-performing assets? In which asset type? And how would you account for these losses? Is there risk that this will hit your PL in the future? Thank you for your question. In terms of amount, total NPL is just over 60 billion yen, and then we have the traditional 30, so this is actually higher than the traditional number, 30 to 40 billion yen. There are different factors behind this. U.S. real estate business. In terms of classification, we have to include some of the items here. And this is why the disclosed amount of NPR is higher than before. So real estate-related financing deals. This is what I'm talking about. And some of them will be recovered according to disclosure assumptions, so we have no big concerns for those items, and also the amount that is recognized here by us. So the real estate, which is part of the mortgage, we will continue to pay close attention to this so that we can deal with a potential of losses in the future. So we have not really accounted for this in a large way, in a big way at this point in time. But as was mentioned before, interest rate trends, and also including mortgage, the business environment surrounding real estate may take time to recover, which means that allument, unbalanced, or securitized assets management status will have to be reinforced. And we have already started this effort by reviewing the insurance, and also we are doing this in a more granular manner right now. So in terms of recognized asset bias, the quality of the asset, I would say, is now shared and managed at a higher level than what it used to be. In other words, in that sense, the transparency is improving. I hope you understand this point, and that's my answer. Thank you. Thank you very much.

Suzuki, thank you for the question. The next is Sasaki-san from Nomina Securities. Over to you. This is Sasaki from Lamia Securities. Thank you for the opportunity. Allow me to refer to slide number 10. So there's one question to ask about this slide. So referring to the bullet point, so the full year earnings, so capital gain is to be targeted, which is to surpass that of 24 March end. So I think you have changed the wording here. Can I take it that the likelihood has increased? This is something that I want you to confirm. And it is not just dependent on the gain on the sales, but also the new investment. Because of the market fluctuation, the volatility, how does it affect you in making or executing those decisions? Because the valuation may perhaps decline. That may allow you to make further investment. And also, yen has started to appreciate So some of the hesitancy that you used to have may go away. So would you mind giving up some flavor to your idea because of the changes in the market? So, you know, while we were targeting, but we can expect, we have said, and that is at the time of the earnings result, we had made such expression that we target that was what we have said last time. But this time we have said that we can expect or we expect that and that is based on the first quarter result, but there is not much of a change except for the fact that we have now concluded the first quarter. So the market continues to be volatile, but as to the deals that we foresee executing, of course we will continue to watch over the development by carrying through the negotiation. As to the likely third, it is only one quarter of the progress that we were able to make in the first quarter. But as to the new investment, as you had asked the question, the valuation may have gone down, but the yen appreciation, especially in the first one or two years, if you were to refer to our actual investment. So as a result of yen depreciation as well as low interest rate, we have been focusing very much on the investment here in the domestic market. Well, with the current rate against the U.S. dollar, the yen at 144 yen, would that be perceived as attractive enough? It's yet to be kind of determined. But as to the negotiation that we have been carrying out, it is true that we will be able to enjoy a little more tailwind thanks to this appreciation of yen. But we may turn a little stronger in allowing the growth to take place. not just on shore, but also abroad as well. Thank you very much. Thank you.

The floor is open for questions. If you have a question, please press star and 1. City Group Securities, Niwa-san, please ask your question. Yes, this is Niwa from the city. I would like to ask you about the shareholder return. I believe that the valuation is now lower, maybe partly due to the external environment. Investment into growth versus return for the shareholders How do you evaluate this? And also, share buyback. Do you think maybe there is room for you to be more agile, mobile about this? So in terms of share price support, is there anything that you can announce to us today? Thank you. Rationality of share buyback. Well, we have to compare that against the expectation for the investment into growth. And this is something that is discussed by board meeting as well. So today at BOD, we met early in the morning. So we were actually not really talking about how the market would perform during the afternoon, but BOD including internal and external directors. The discussion included the reasonableness of the share price. This has always been discussed. Share buyback to support a share price, whether we can do this in an agile manner. Well, we have not really discussed this extensively. We are not really talking about specific thresholds. after which we would move very quickly, but we would like to receive this question and try to learn a little bit more about this going forward. I know that I'm not really answering your question, but we are only talking about the return to shareholder as a comparison against investment for growth. And in terms of the share buyback, we may decide it quickly, but we will not be doing that just because the share price fluctuated. That's all. Thank you. Thank you very much for your very dynamic explanation. That's very informative.

Thank you for the question. We are still waiting for your question. If you have any, please come forward. There seems to be no further questions. So we'd like to conclude the Q&A session for now. I'd like to call upon Yamamoto, who will be providing the closing remarks. So thank you all very much for joining us in this briefing, despite the very busy schedule. So that was the trend for the first quarter, and thank you very much for many questions. So we would, as Oryx, would like to, of course, capture whatever the changes that would take place in the market to be a great opportunity that would make a positive contribution to the earnings. So we would continue to watch over the development of the deals that are existing as well as in the pipeline. And thank you very much for your time again. So I would like to conclude a 2025 March end first quarter result earnings briefing. Thank you all very much for taking part in this session.