ORIX Corporation

It's time to start the meeting. Thank you for joining this conference of RX Corporation for first quarter. Consulted financial results for the three-month period ended June 30th, 2026. I'll be the master of the ceremony. My name is Tomioka with IR. Thank you. The attendees at this conference are Masataka Yamada, Senior Managing Executive Officer, Chief Financial Officer and Chief Strategy Officer, and Kazuki Yamamoto, Operating Officer, responsible for investor relations. Both Yamada and Yamamoto will provide you with explanation, which will be followed by Q&A. The whole meeting should last approximately one hour. Now we would like to hand over to Yamada-san.

Thank you very much for taking time out of your busy schedule to attend the Oryx Group Financial Results Briefing today. I'm Masataka Yamada, Oryx Group CFO and CSO. Without further ado, I'd like to explain the financial results for the first quarter of FY2027. First, please turn to page 2 of the presentation deck. The points we would like to convey at today's briefings are the following three points. Net income is the first. Stronger core earnings power and robust capital recycling. And the third, first half earnings forecast and dividend policy. I will explain the first and the third points, and then Operating Officer Yamamoto, who oversees IR, will explain the second point. The first point is net income. Net income for the first quarter was 280.8 billion yen, an increase of 173.5 billion yen year over year, marking the highest quarterly profit on record. Progress against the full-year net income forecast of 530 billion yen was 53%. Gains related to the sales and valuation gains on Kioxia shares held by Toshiba, one of our investees, contributed significantly. The second point is Oryx's stronger core earnings power and robust capital recycling. Regarding our core earnings power in the first quarter of this fiscal year, Oryx Europe expanded its AEM to record high levels primarily through Robeco. Thank you for watching. Next, regarding capital recycling, we proceeded with the exit as planned for domestic PE investee Sugiko, as well as multiple PE investments at OREX USA, including peak utility and network connects. Regarding OREX Bank, the transfer of all shares to Diver Securities Group was completed on August 3rd. Additionally, as announced on the same day, we have signed a share transfer agreement for the 100% acquisition of Airfin, a major aircraft parts-out company. We are steadily advancing capital recycling while maintaining a balance between investments and divestments. The third point is the first half earnings forecast and dividend policy. We have calculated our first half net income forecast at 840 billion yen. Of this, 300 billion yen is categorized as adjusted profit, and 540 billion yen, which is non-cash profit, is categorized as kyokusha sale and valuation gains. We have changed our policy to use adjusted profits as the source of dividends. The full year net income forecast of 530 billion yen remains unchanged. Details will be explained on the following pages. Please turn to page 3. I will explain our first half net income forecast for FY27. Our net income is significantly affected by fluctuation in the price of Kyoksha shares held by Toshiba. This page shows the results of a calculation of the first half net income forecast based on Kyoksha share price at the end of June. The blue bar graph on the furthest left represents the full-year net income forecast of 530 billion yen we announced on May 11th, calculated based on the assumption that Toshiba would continue to account for kiosk-related gains and losses as equity method earnings. The box immediately to the right briefly explains the announcement of May 21st. which was the result of calculating the impact on our first quarter results following our revised assumptions namely Toshiba's change to market valuation of Kyoxya shares in its full year results for FY26. Next, the grey and red bar graph, second from the right, shows the first quarter net income of 280.8 billion yen mentioned on the previous page broken down into 121.7 billion yen of Kioxia sale and valuation gains in grey and 159.1 billion yen of adjusted profits in red. This Kioxia sale and valuation gains of 121.7 billion yen is based on the valuation gains recorded by Toshiba using Kioxia's share price at the end of March, which was 19,080 yen, as shown at the bottom of this page. Finally, the bar graph on the far right shows our first half net income forecast, which was also calculated based on Kyokusha's share price at the end of June, which was 89,680 yen. Sorry to repeat myself, but the first half net income forecast is 840 billion yen, which includes one Kyoxya sale and valuation gains grade of 540 billion yen and adjusted profits in red of 300 billion yen. Next, please turn to page 4. The reason we kept the full year net income forecast unchanged at 530 billion yen is that it is difficult to predict the impact of Kyoxya sales and valuation gains on our full year net income. For every 10,000 Japanese yen change in Kyoksha share price, our after-tax Kyoksha sale and valuation gains fluctuate by 57 billion yen. This is calculated based on Toshiba's holdings of Kyoksha shares. As of the end of June, Kyoksha share price was 89,680 yen at the end of June, and the closing price yesterday, August 5th, was 54,300 yen. Depending on Kyoxya's share price at the end of September, we may record Kyoxya's sale and valuation losses in the third quarter. Now, with the improvement in core earnings power as a backdrop, we plan to steadily grow adjusted profits in the second half as well. Now next, please. Turn to page 5. This page explains the change in dividend policy for the 27 fiscal period. In the center of the page, we have again given a definition of Kyoxya sales and valuation gains. This refers specifically to the portion of Toshiba-related investment gains and losses related to the sales and valuation gains on Kyoxya shares after tax. Under our revised dividend policy, we will define adjusted profits as the portion of accounting net income excluding kiosk sales and valuation gains and use this as a source of dividends. There is no change to our approach or policy of paying either in that 39% of payout ratio or the previous year's dividend of 166.10 Japanese yen, whichever is higher. Based on the first half adjusted profits forecast of 300 billion yen, and calculated under revised dividend policy, the interim DPS for this fiscal year will be 107.27 yen. This concludes my presentation. Next, Operating Officer Mr. Kazuki Yamamoto will provide some additional commentary.

Yes, I'm Kazuki Yamamoto with SYNC Corporate Planning, Iron and Sustainability. I will use page 6 and 7 to talk about Japan and APAC, infrastructure, US and Europe, and insurance. Before those new segments, I would like to talk about the pre-tax profits and assets year over year, and also a comparison against the end of a prior fiscal year. Infrastructure performed well with higher profit excluding large gains on sales recorded in Q1 of the previous fiscal year. So profits increased year-on-year in three segments excluding infrastructure. As it's increased, this is end of a prior fiscal year at Oryx USA in USA and Europe segment and expanded leading executions due to expanded leading executions, but there's no significant changes in the other three segments. I would like to use some supplemental material to explain. Please turn to page 13. Profit for Japan on APAC was 289.8 billion yen, an increase of 237.6 billion yen year over year. In addition to gains of approximately 62.3 billion yen from sales of Sugiko, a domestic PE investee, the auto business expanded new lease origination. and that contributed. Excluding the 179.8 billion yen from Kyokushio sale and valuation gains, segment profit was 110 billion yen, an increase of 57.8 billion yen year-over-year, compared to the 52.2 billion. Asset increased slightly because of the new execution and equity investment increase, Toshiba and Asia Pacific FX. But balance was slightly declining in Greater China. Please refer to page 15 for the list of PE Investees exits and new items. And also for breakdown of APAC and Greater China, please refer to page 16. IPEC in Japan accounts for 33% of the total segment asset. Please turn to page 17. Infrastructure segment. Segment profit was 43.3 billion yen, a decrease of 25.1 billion yen year over year. If we exclude the absence of the sales on gain from the prior year, it's actually an increase. Avalon and SHIB's business benefited from favorable market conditions and achieved growth in both gains and the sales of their current least revenues. We will try to close the deal by 26. And for energy... There's been problem with the output regulation or restriction in renewable energy and the profit was down. And concession including Kansai Airport actually declined in profit over the year. The details are shown on page 18 for your reference later. Segment assets. While strong performance at Avalon and continued investment in ships boosted assets, this was offset by aircraft sales and exit from logistics center and real estate, and it was down slightly year over year. Moving on to page 22, USA and Europe. Segment profit was 63 billion yen, an increase of 52.4 billion yen year over year. Oryx USA recorded fair value gains from PE investments and Robeco and others overseen by Oryx Europe significantly expanded AUM and grew fee income As for segment assets, NXT Capital Loan asset-based lending continued and this pushed up the numbers At Oryx, as for Oryx USA, please refer to page 23 for LOB profit and asset breakdown for your reference. Moving on to page 25, insurance segment. Segment profit was, this is mostly Oryx Life, but it was up 3.9 billion yen at the 28 billion yen. Fed by strong earnings from yen-denominated whole life insurance products newly launched in the previous year and also we acquired high value contracts for corporate high net worth clients resulting in increased insurance profit. Investment profit was also strong. Assets increased slightly as investment assets grew on the back of expanded premium income. Please return to page six. For the four segments, Based on their performance in the first quarter, as you can see at the bottom segment profit basis, this was 173% and for pre-tax profit 161% and net income 162%. So compared to the prior year, the profit was up in each of these lines. And the progress is a 53% against the full year forecast. Moving on to page 7. At the end of the line, you can see the segment asset in total. 14.4261 trillion yen. Up 190.9 billion yen a year. And the total assets was 18.257 trillion yen, including 3.262 trillion yen for assets from discontinued operations. Please turn to page 8. This page shows the relationship between the business lines comparing the four new segments and the three categories, finance, operations and investments that we have been using. To clarify the understanding based on this, please turn to page 9. So this is the four-year outlook and also the pre-tax of profit and progress year over year for the three conventional categories. Human profit for finance was 45.2 billion yen, an increase of 6.6 billion yen year-over-year, with achievement of 27% against the full-year plan. The main driver of the profit was an increase of insurance. Please note that both the four-year forecast and the Q1 results do not include profits from Oryx Bank because this is going to be classified as discontinued operation in Q2. Q1 profit for operation was 55.4 billion yen. A decrease of 8 billion yen year over year because of the absence of the gain on sales of the prior year. Oryx and Robeco fees are strong and also domestically Oryx Auto has been continuing its strength and therefore the progress was 23%. Last but not least, Q1 profit for investment was 323.5 billion yen. and this includes Kioxia. And the overall progress was 112% exceeding the original plan. But if we exclude Kioxia sales and valuation gains, the profit was 143.7 billion yen. In this case, an increase would be 90.4 billion yen year over year and 50% progress. So the dotted line in the middle is representing what I've just explained. Nothing more to page 10. Capital recycling for this year. Capital gain recorded was 115.7 billion yen and cash inflows from capital regroupment was approximately 300 billion yen. PE Unit and Oryx USA exited PE Investees and made steady progress. Additionally, we sold logistics facilities. and the multiple aircrafts. Cash outflows was approximately 80 billion yen. In addition to the PE investment in Nihon Information Industry Corp as first deal for the joint funding established with the Qatar Investment Authority, we have been investing in developer-owned businesses in logistics, aircrafts and ships. Cashing is much higher than cash out, but based on the current status of pipeline, we will continue to capital recycling and optimize the portfolio. The full year outlook remains unchanged from the forecast announced in May, as you can see to the right. But air thin acquisition has been already announced, and 80 billion yen new investment actually includes this. Share transfer of Oryx Bank and equity transfer of Network Connex, a PE Investee from Oryx USA, have already been completed in Q2 and already reflected. As for other new investments, main areas continue to be Domestic Real Estate, PE Investments, Aircraft and Osaka IR. Airfin Major aircraft parts at company through Oryx Aviation. Well, with Elfin joining the group, we aim to expand our business foundation across the entire aircraft value chain from new aircraft leasing to post-retirement parts utilization and enhanced asset management services. And capital gains amount mentioned earlier does not include profits and losses recognized from equity method investees such as Toshiba. Please turn to page 11. Shareholder returns. As Yamada has explained, interim dividend returns Based on the adjusted profit is set at 107.27 yen per share. For the full year forecast, well, as Yamada explained, the net income forecast is maintained at 130 billion and therefore the full year dividend forecast is steady at 187.36 yen. Based on changed dividend policy and also based on the pipeline, profit and investment recouping, we will continue to end excess capital. And this stance has not really changed. As for share buyback, Against the total amount which was announced at 250 billion yen in May, at the end of July, we have purchased a 78.4 billion, progress of 31%. And for this fiscal year, full year payout ratio, including dividends and shared buyback, is maintained at 85.9% as disclosed in May. That's all from me. Thank you.

Thank you very much. We are now ready for the Q&A session. If you wish to ask a question, please press the raise hand button at the bottom of the Zoom screen. When your name is called, please unmute yourself and start asking your question. Now, in terms of the question, please refrain from asking more than one question. So we have from JP Morgan, Sato-san, over to you. Thank you very much for your presentation. This is Satoru from JP Morgan. Just one question. And this is to do with Kioxia sales and valuation gain on page 3. I know that there is an explanation on this page, but in accordance with this page, to begin with, So to the original plan, any additional profit is to be 70 billion yen, I suppose. But from the adjusted profit, 171 billion yen is to be adjusted. So what was incorporated in the original plan was 50 billion yen of an adjusted profit. So this is the target for the adjustment, I suppose. So based on this presumption, So all those that are going to be excluded for the full year, would you be able to get that back by the full year, by the time of the end of the year? So would you be able to beat the 530 billion yen, your original expectation for the full year? And also ROE, I'm sure, is proved to be important as well. Now with regard to ROE of 11%, I suppose the adjustment is required for this ROE as well. So especially for the denominator part, so just like the policy that you have announced this time, the Keoxia sales valuation gain or loss, can I take it that you're going to be making a kind of a similar adjustment to the ROE as well? Thank you very much for asking the question. And thank you for pointing out All that you have shared, so 520 billion yen, to be precise, on page 4, you can see, refer to the chart, and it is pretty complex. So 530 billion yen, you can see it is slightly short of this amount. So as for this, on a continued basis, in the second half, There is a certain pipeline where we have a great expectation for. So I'm sure we'll be able to make up for the shortcomings through this pipeline in the second half, but we have not reached the extent whereby we'll be able to incorporate these expectations yet at this point in time. As for ROE as well, as you have pointed out, whether it is going to be an adjustment for the denominator, or are we going to be adjusting both the numerator as well as the denominator, or... Would it be based on a new idea for ROE or ROE itself? The target may have to be changed. It's currently being discussed actively internally. Once we know the clear direction, for sure we would update on the latest understanding and thinking to the investment community as soon as possible. Thank you very much. Understood. Thank you.

Thank you. Next, Takemura-san, Morgan Stanley, please ask your question. Thank you. This is Takemura, Morgan Stanley, MUFJ. I have a question about Q2 progress and also outlook. Excluding impact of Kioxia, in Q1, you landed at 159.1, but for the first half, you are aiming for 300 billion. So in the second quarter, you are planning for 140 billion yen of profit, I presume. But Oryx Bank gain on sales is more than 120 billion pre-tax. So if we take that out, then a profit for the second quarter is only just over 50 billion yen. Are there any downside risks that you're assuming for Q2? Or are you just being conservative and you're planning to exceed the plan? How do you see the progress of the first half of the fiscal year? Please share your thoughts. As you have pointed out, for Q2, RIX Bank, the visitor post-tax profit is included, so your calculation is correct. With regard to the remainder or the balance, there are two things, as you said. One, we're being a little bit more conservative, and the other is there could be some one-off factors. So based on multiple factors, we have decided on this number, and we cannot really break it down for you, but please understand that there are two aspects, both aspects. Understand, thank you. If that is the case... 25% or less progress in terms of operations, but you are assessing that the progress is solid. Right. Recovering revenue has been moving quite steadily. Yes, that's assessment. I understand. Thank you.

Thank you for the question. So the next person is from SMBC Nikko, Muraki-san, over to you. So this is Muraki from SMBC NICO. If I could ask question about the page 3 in addition to what has been asked already. First of all, you suggested the profit upside as well as the downside. I know that there has been some discussion about this topic. But within this item, I know that there's non-cash portion. So what you will be receiving from Toshiba, so about 51 billion yen or so, in the second quarter, this red part, is it going to be included in the 300 billion yen? May I take it? And also, if there was to be a downside risk in the Greater China, I know that you have posted some losses from the Greater China region. Are there any other impairment that you may have included? Well, you see, we have applied the equity method accounting. So even if there was to be any distribution, it doesn't hit our P&L. So it will be an adjustment on the balance sheet, rather. So therefore, with regard to this amount, it is not from the P&L perspective, but rather the investment in the future, as well as its return, and also the capital structure and also at the same time the ROE in mind towards the end of this fiscal period, how to treat this is what we need to decide for ourselves. And also with regard to this valuation loss in Greater China, there are numbers of public equity that we hold. So more than a certain amount during a certain period. And if it has gone below a threshold, we would be accounted to be the impairment or valuation losses. And there has been some of this that was applicable. I see. Which means that for the quarter from Toshiba, the cash portion that you have received, so kiosk sales and valuation, it is included in this portion. But for the full year, it may be the case that you're not going to be including in that sales or valuation of Keoxia, but rather it will be incorporated in the adjusted profit. Rather than a P&L, from the perspective of the fund itself, in other words, we will take on a comprehensive approach and how to treat this. So not to kind of incorporate this into the formula, we may perhaps kind of think about the shareholders' return from a different angle, so different way of thinking. That's what it is. Thank you.

Thank you very much. Daiwa Securities, Watanabe-san, please ask your question. Yes, this is Watanabe, Daiwa Security. I have a question about Airfin. And the impact on your capital and also contribution to profit and what kind of synergy you would expect on this deal. Impact on capital or equity. Well, goodwill and also intangible asset, depreciation and non-depreciation. So we have to separate those, but The purchase price versus the book price. We cannot disclose this information, but there's going to be a number that will explain the difference between the two. In terms of profit contribution, There is a public disclosure on the UK side, so contribution is expected in line with the number that's been disclosed in the UK. But depreciation of an intangible asset will have to take place as well, so that will have a slight negative impact. As for synergy, Temporarily, we will be expanding value chain and completing the value chain. That is the context of this acquisition. But there are also additional synergies that we would expect. Complementary relationship in terms of customer base. So in our aircraft lease business, we have customer base. Airfin has their own customer base. And some of them are not overlapped, which means that we would be able to Make referrals of customers to each other. So that's another part of synergy that we expect. Thank you. In terms of profit contribution, is it going to be about 10 billion yen segment profit contribution at Oryx? Would that be in line with your expectation? Well, additional contribution We'll be in line with the profit disclosed by the other company, the target company, but as Yamada has mentioned, from lease, acquisition, parts out, we will be able to compound these benefits, which means that we can push up the revenue for the whole life cycle. So, Otanabe-san, as you have rightly mentioned, over the long term, it would have a bigger contribution to the profit growth. That is our expectation. That's very clear. Thank you.

Thank you very much. So, it's Fujino-san from Bank of America Securities. Thank you very much for this opportunity. So the P&L from the Europe and America, USA and Europe, especially 59.6 billion yen worth of securities sales and valuation.

So this is a PDV investment in the second quarter. Acquisition was completed in the second quarter than the first quarter, I think. So this is 59.6 billion, but the US only has 42 billion, which means that without this, USA is still in deficit. It's making losses. What is the current status? Can you please explain? Yes, I would like to check the numbers first. This is Yamamoto speaking. The slide that you can see is pre-tax profit breakdown and Oryx USA Q1. 12.9 billion and Oryx Europe at 20 billion or so. And out of these, Oryx USA... Private credit, I'm sorry, let me correct, private equity valuation contributed, which was a positive contribution this time. But for some of the businesses... Profit and loss being balanced and we could make some improvements as well. I think that would be the explanation of the status. And in Q1 for Hilco, the number is still negative, as you can see. But from PMI, we have seen some neutral market status and we are trying to grow stably. So please give us some more time to show you the benefit of the acquisition. At the Global IR Conference, COO Suzuki has provided explanation. Last year, or one of factors, we had some negative factors. But in order to recover from that, we know exactly what to do. We have clear strategy. So we will be implementing those strategies in Oryx USA. So please give us some more time before that is reflecting the actual performance. I would like to add, as for Hilco, in the prior quarter, it was immediately after closing And therefore, there were some expenses related to the acquisition, but that expense does not exist in the current quarter any longer. And as Yamamoto has explained, Hilco business portfolio, if you look at the whole portfolio, we have business line with stable sales and profit, and also part of the portfolio, which is a little bit counter cyclical. And in the United States, as you may know, there is a Goldilocks situation. It's not going up or down. It's in the lull. So that's the situation in the last couple of quarters for Hilco. Considering the nature of this business, rather than looking at the performance of each quarter, we should give it a longer term perspective. Six months, perhaps 12 months. We believe that we need to give that kind of long term perspective. So looking at this PE, $268 million. And then again from sales of our securities, $59.6 billion. This includes things that are not related to PE, is my understanding. And I don't think these actually belong to Europe. So I'm guessing that this relates to other US businesses. But because of the expenditure expenses, in the end, you end up with the numbers in the Navy and the grey on this page. Is that the correct understanding? On gross basis, by segment, we have disclosure 59.6 billion yen. Majority of this is attributable to the United States. But this is just one side of the revenue. So sales of marketable securities and also dividends and interest paid and received, those elements are also included as well. Funding side payment cost, for example, will have to be looked at in balance of this. U.S. credit business alone, NXE Capital, for example, or Signal Peak, and also structured credit trading, with regard to these, the environment is relatively positive. And some of the stronger numbers that you can see include bond and also trading environment. So the environment is not necessarily bad. I understand. Thank you. Thank you very much. Moving on to the next question, Sakamaki-san, Mizuho Securities. Yes, this is Sakamaki Mizuho. I have a question about Europe. AUM is growing, I can see, but more than that. Compared to the Q4, I think there's a huge growth on QonQ. Are there any temporary factors such as performance fee? Or do you think this level of a profit is more or less standard? Yes, this is Yamamoto. I would like to explain. As you said, for Robeco, market appreciation has contributed. And if appreciation does not continue, we expect some deceleration. Somebody else mentioned that our Q2 forecast is conservative. This is because we don't expect the market to appreciate further. We believe that this quarter was a little bit better than usual. This is not necessarily entirely one-off, not necessarily a success fee, including net new money inflow. Robeco gets mandates from the investors and they have been strengthening their marketing activities, which are producing results. So yes, Q1 was quite strong. And Q2 and beyond, we don't expect a huge decline because of the first quarter growth. Compared to other asset managers, looking at Roboco on a quarter-to-quarter basis, we see constant new money coming in. So we do not expect a huge duration because some portion of this can be sustained or supported by new money coming in. So I think that's going to make a big contribution going forward. That was very informative. Thank you very much.

Thank you for the question. The next person is from Nomura Securities. Sasaki-san, please. I am Sasaki from Nomura Securities. Thank you for the opportunity. Now, with regard to this adjustment profit, especially the outlook, I know that you have been providing various different explanations, but if we were to perhaps view this from the management perspective, would you make a judgment that it is going for the better or the worse? Well, I know that it's difficult to understand. So we think that we'll be able to grow this adjusted profit in the second half as well. Okay. Also, as much as possible, if you could explain. So this Kioxia-related matters, especially in light of dividend, I know that you have excluded from the shareholders' return. But inclusive of Kioxia, Toshiba's valuation enhancement, so the payout to shareholders, how could that happen? The profit that you'll be generating, do you think that this will be kind of contributed to the shareholders? Well, as of now, as you have understood, the valuation, profit or loss, or even if it was to be a gain on sales, it will be remaining at Toshiba. Therefore, there will be no kind of payment being made to us on a cash basis. So from Toshiba, as a result of the sales, if there was to be a return and if we are in receipt of the cash, some part of it will be... made use of as a source of payout to our shareholders. And especially if it is a capital gain, we would use part of what we will be receiving for the shareholders' return. But this is something which is not under our full control. So this is why I'm terribly sorry, but our explanation remains to be pretty ambiguous. Okay, understood. If this is the case, If you were to sell Toshiba's shares, if you were to sell Toshiba's sales, would it be included in this payout? Anything that is non-cash. Because there is such a fluctuation.

Even today. It's adjusted, so this is the policy. Thank you very much. That's very clear. Thank you. UBS Securities, Niwa Sun, please ask your question. Yes, this is Niwa, UBS Securities. I have a question about new investments. I'm looking at page 10. Probability of achievement for the annual plan, including air thin, 200 billion water, so maybe this is in line, but it also looks like it's a slow start. The market is quite strong, so perhaps you are Struggling with the generation or you are waiting for the market to change? Can you please give some color to this? We have a pretty rich pipeline. And as you have said, valuation range is quite high in some of the sectors. And therefore, we will be, of course, continuously active, but we also need to implement a financial discipline at the same time. Rather than hurrying to make the investments and focusing on the amount that we're investing on a quarter by quarter basis, we really want to focus on doing something that is effective. So we are being selective when we make investment decisions right now. And I don't think it's right to consider that the pipeline is weak. I see. Thank you. I would like to add some comments. So 300 million coming in, and for this particular quarter, we are recuperating less than investment, but this is according to our plan. If we do more exits toward the end of fiscal year, And that would be problematic for the stability of the performance. So Sugiko was sold and also Oryx Bank closing its second quarter. And we will be reinvesting that profit coming from that. Which means that within one single year, it looks like the new investments are being delayed. It just looks like that. And for the Flow that we have a visibility like Osaka IR, time lag is not a problem, but real estate and aircraft investment and Osaka IR related investments and as Yamada-san mentioned, we also have a PE investment market situation. Because of those, there is a trend or tendency that more of them will happen till the end of the fiscal year, but this is within our expectation. So 800 billion. Well, if we tell everyone that we can spend as much as they want quickly, they would spend everything at once. So the investment committee is being very selective. Under leadership of Takahashi, We have started discussing all the potential investments pretty deeply from the beginning. So we have a very strong pipeline, rich pipeline, but we need to be clever. in buying them at advantageous prices. So we are looking forward to showing you the outcome of these efforts. Can you give us some color, please? 800 billion for this year. Domestic versus overseas, how do you think it will finish? Well, mostly IR. Well, because of IR, there's more focus on Japan. Do you have any items that are within scope for the domestic market and can they give an impact in this fiscal year? Well, IR Day in London, we provided more of a long-term perspective at that meeting in regard to private asset context. For this fiscal year, it's not so much about private asset, but real estate and also PE investments within the existing business. And as a result, investment amount in Japan will have a higher percentage. Well, in IR day, I think we were talking about a different asset class. So that's expectation over the mid to long term. I understand it better now, thank you. The floor is open for questions. If you have a question, please click the raise the hand button which can be found at the bottom of the screen. If there are no further questions, we would like to close the Q&A session. And we would like to receive a closing remarks from Yamada-san. Thank you very much for joining us today. And we received various questions, including Kyoksya's volatility. I understand that this physical visibility is somewhat weaker, but we will Look at the changes and we will do our best to update you on a timely basis and stay in communication with all of you. So thank you very much for your support, for your continued support. So that concludes the Q1 earnings call. Thank you very much for staying until the end of this call.