Ms&Ad Ins Grp Hldgs Ord

Ladies and gentlemen, esteemed investors and analysts, thank you very much for taking time out of your busy schedule to join today s earnings conference call for MSNAd Insurance Grp Hldgs Inc. My name is Hayashi from the IR department, and I will be moderating today s session. Also participating are Mr. Nagayama, general manager of the accounting department, together with the colleagues from both the IR and accounting departments. The presentation materials are available on our company's website under the Investor section, specifically in the IR events area listed alongside the earnings release and other related disclosures for the fiscal 2026 first quarter results. Please have these materials ready as we proceed. As with our previous conference calls, we have included a summary of today's presentation in the materials. Therefore, at the outset, I will focus only on the key points, and we will dedicate most of the session to the Q&A. We aim to conclude the entire meeting in approximately 45 minutes, and we appreciate your understanding. Furthermore, please be aware that today's presentation may include forward-looking statements based on our current forecast. Such statements are subject to risks and uncertainties, and actual results may differ materially from these projections. We kindly ask for your understanding in this regard. Now, let me briefly outline the key points of our financial results. The key highlights for today are shown on page 4 of the presentation materials. First, adjusted profit for the first quarter of fiscal 2026, excluding gains from the sales of strategic equity holdings, was 251 billion yen, an increase of 64.7 billion yen year-on-year. This represents solid progress at 47.2% of our full-year forecast. In addition, Grp Adjusted Profit, which serves as the basis for shareholder returns, increased by 71.1 billion yen year-on-year to 310.6 billion yen. This also represents very strong progress at 38.8% of our full-year forecast. Breaking down adjusted profit by business segment, the domestic non-life insurance business recorded 126 The domestic non-life insurance business recorded 124 billion yen, an increase of 4.2 billion yen year-on-year. This was mainly due to improved loss ratios in automobile insurance, reflecting the positive impact of rate revisions. In the international business, adjusted profit increased by 52.9 billion yen year-on-year to 108.8 billion yen. This strong growth was driven by continued low loss levels, higher revenues across all regions, particularly in Europe, and the inclusion of equity earnings from W.R. Berkeley Corporation, which began this quarter. In the domestic life insurance business, insurance service profit improved to ¥16.5 billion and increased of ¥4.4 billion year-on-year. This was mainly due to a reduction in losses on honors contracts, following a review of key assumptions such as mortality rates.

Next, I will explain insurance revenue in each business segment. Please turn to page 8 of the presentation materials. Insurance revenue for the first quarter of fiscal 2026 was 1,615,800,000,000 yen, an increase of 208.8 billion yen year-on-year. Breaking this down, insurance revenue from the domestic non-life insurance business increased by 31.4 billion yen year-on-year to 819.3 billion yen. This growth was mainly driven by higher automobile insurance revenues, reflecting the positive impacts of late revisions. In the international business, insurance revenue increased by 169.7 billion yen year-on-year to 707.7 billion yen, driven by growth across all regions, particularly in Europe, as well as the positive impact of foreign exchange rates. Next, I'll provide an update on natural catastrophe losses. Please turn to page 9 of the presentation materials. In Japan, although natural catastrophe losses for the two domestic companies increased by 5.8 billion yen year-on-year, mainly because there were no major events in the same period of the previous year, the figure remains within our full year forecast range. Overseas, natural catastrophe losses decreased by 1.3 billion yen year-on-year, as there were no significant events in the first quarter. This is also within the range of our full year forecast. With regard to natural catastrophes that have occurred since July, Including the Kumamoto earthquake, detailed information is not yet available at this time. However, we currently expect these losses to remain within our full year forecast. Next, I'll explain the status of our sales of strategic equity holdings. Please turn to page 13 of the presentation materials. Gains on the sale of strategic equity holdings in the first quarter increased by 6.4 billion yen year-on-year to 59.6 billion yen. showing steady progress toward our full-year target of 268 billion yen. Finally, I will provide an update on our ESR. Please refer to page 11 of the presentation materials. ESR rose by one point from the end of March to 215%, reflecting the accumulation of retained earnings, including those earmarked for shareholder returns. We continue to maintain a sound financial position. As for the denominator, integrated risk volume, while we continue to sell strategic equity holdings, it increased due to factors such as our business investment and bearings, which was closed in May, and rising domestic stock prices. As for the numerator, net assets at market value, as mentioned earlier, these have increased due to the accumulation of retained earnings. As a result, the level remains roughly unchanged from the end of March. That concludes my remarks. We will now begin the Q&A session.

To begin, I'd like to invite Takemura-san from Morgan Stanley. Hi, I'm Takemura from Morgan Stanley and UFC Securities. Thank you very much for the opportunity. I have two questions. My first question is slide number seven. I'd like you to give us more detailed explanation. On year-on-year basis, profit is increasing. And especially international business, it seems that the profit growth was big. So could you please give us more color? Hldgs Ord Hldgs Ord Hldgs Ord Hldgs Ord Hldgs Ord Hldgs Ord Hldgs Ord Hldgs Ord Thank you. Slide number 7, Adjusted Profit Breakdown, especially the international business. The explanation on the numbers, I think, is your question. I am Nakayama from the Accounting Division. Thank you very much for your participation. And talking about the international business adjusted profit, please refer to page 21.

There is a waterfall chart.

And if you jump to page 21, you will find regional breakdown. There's a chart below. And as you're understanding, basically your understanding is correct, 20.7 billion increase in US is the biggest contribution, but Berkeley accounting for more than 50%. On the other hand, transfers, Hldgs Ord Hldgs Ord Hldgs Ord Hldgs Ord Hldgs Ord Increased by ¥18.6 billion Yen MS Re was making the biggest contribution ¥9 billion Amlin ¥5 billion Qi Yu ¥5 billion for the breakdown and the underwriting not only the underwriting profit but also management investment management is doing well so profits were increasing lastly Asia 14.9 billion yen increase year-on-year. Close to 10 billion is coming from MS Mintai, Taiwanese subsidiary. And following the Taiwanese share price increase, the valuation loss we were being able to recognize. That was a major contributing factor. In Fast First Capital, because of FX, we've been able to increase the profit by 2 billion yen. These two businesses were contributing mostly. Thank you. My second question, slide number 16, expense ratio. If you look at the Expense ratio decreased by 0.3% from year-on-year. And based on that, following the domestic subsidiaries consolidation, how you've been able to make improvement in your expense ratio or expenses is my first question. And can we expect the decrease in expense ratio is going to be continuing even in the future with the same speed? Thank you. Thank you. The second question is domestic non-life insurance expense. Nakayama, I will answer to your question. We have a maintenance fee and fee New Policies Expense you will find the breakdown below and first of all expense basically following the recent inflationary situation both the personal cost and other costs rising but as you see top line is growing so the ratio expense ratio has been improving and the new policy the following the rate revision The Commission has been improving. That should be one of the major reasons. That's it. Thank you. That means to achieve the $150 billion in annual target, you are making a good progress at the end of Q1, and you are being able to enjoy positive effects. Am I correct? Well, $150 billion, the target is By 2030, so 150 billion will be reduced by 2030. And if we are already achieving certain results, after the consolidation, we are going to swing mining. So we should not expect that immediate impact is taking place. Approaching 2030 in a gradual manner, we believe that the visible impact, well, positive impact should become more visible. Totally understood. Thank you.

Thank you very much, Takemura-san. Next person is Sakamaki from Mizuho Securities. This is Sakamaki from Mizuho. I also would like to ask two questions. First, regarding natural catastrophes domestically compared to your peers, the claims that have been incurred are relatively low. So how far have you reflected typhoon impacts and recording growth incurances, growth claims, as well as the recovery through reinsurance. Can you also sort that out for us? Thank you. Thank you very much. First is about natural catastrophes domestically. I'm on page nine, where there is a page on natural catastrophes. As you can see here, Main ones would be Typhoon No. 6, which we have accounted for by $6 billion, comparing ourselves against two periods, saying that we are relatively low or high. But with regards to how much we account for for NACCHAT, as you can see under the star, this is on an internal basis, and that's how we have derived these numbers. So for other companies, they may account for smaller claims as well. So this is not an apple to apple comparison. That's all from me. And how about typhoon number seven and eight? You haven't really accounted for them? No, we have not included seven or eight. I see. My second question is, about MSV? I am on page 24. Regarding it seems that the discounting has been impacted. Your performance and loss ratios haven't really gone up for MSV. So are there any portfolio changes or excluding discount impact? Can you give us some flavor on what has happened? Thank you very much. For MSD and loss ratios, that was your question. I'm on page 24. And as you rightly said, regarding the discounting and natural catastrophe impact, when you add it back, it's 83% for fiscal 26 and 79.2% for fiscal 25. So it has went up by 3.8%. The loss ratios were too good last fiscal year. That's the trend we saw. And you may remember, but in Baltimore, a bridge in the US collapsed, and that was a large loss. And on a market-wide basis, that boosted losses, and that has been accounted for by MSRA too. So compared to last year, It looks like it has been going up. But we're still in the first quarter. So we will continue to monitor the trends against our full year plan. Thank you. I see. I think this is associated with MSM one as well. Were there any impacts on the Middle Eastern circumstances? Reporting on line or MSP? For this quarter? No. For MSV, no, but for MS Amelin, there were some lost notices that have come in, and we have been accumulating reserves in accordance. So for Amelin, there has been some resource impact in light of the Middle Eastern conflict. Thank you very much.

Thank you, Sakamaki-san. Mr Muraki from SMBC Nikko Securities I am Muraki from SMBC Nikko Europe and US? I have questions. First is about Europe. The Middle East situation has been happening, but still loss ratio much lower than your plan, I believe. What is the reason and what about the sustainability? That's my first question. Thank you. So that was about Amelin loss ratio after incorporating the Middle East impact. I am Nakayama. Page 23, please. As you mentioned right now, yes, loss ratio has been trending. Well, on your basis, you will find how we've been able to make improvement. And there's no special reason why the situation number is improving. But we are still only at the end of Q1. So at this moment, yes, the progress is Good. That's what we're incorporating, but we'd like to pay close attention to the situation. That's it. Thank you. My second question is on page 21, the Americas. And I think domestic, non-life, I think is included in the others, but in the United States. The liability loss we were recognizing, the company was incorporating. But how are you viewing the situation is my question. And other than W.R. Barkley, U.S. business, softening situation, how are you being impacted or not is my second question. The second question is about the Americas. Nakayama speaking. First of all, Japanese companies liability insurance for their overseas businesses that's not included in the others out of the international business but because because they are Japanese companies our accounting we are incorporating in our domestic insurance business and answering your question yes we are underwriting liability insurance from these Japanese customers but The Overseas Businesses Related Underwriting We Are Not Recognizing Large-Size Loss That's Our Current Understanding That's The Current Status And Other Than W.R. Berkeley Softening Situation In The United States Talking About MSICUS Relatively Immune To Softening Because We Are Focusing On Specialty And MS Trans

Hldgs Ord Hldgs Ord

And talking about Japanese companies, I heard that you are recognizing as non-life and domestic, but I think that the other business lines loss ratio deteriorating. Is this domestic, domestic liability or domestic overseas? Nakayama speaking. Well, first of all, this is kind of complicated. But as long as the underwriting is taking place in Japan, regardless of whether where the accident is taking place, the loss is going to be recorded here in Japan. So it's going to be impacting the domestic loss ratio. I see. Thank you, Muraki-san.

Next person is Sata Labesan from Daiwa Securities. This is from Daiwa. I have two questions. First is about strategic equities and the reduction. Compared to 476.3 billion, which is your full year plan, how much progress have you made? And you talked about the overhang in Q4. Has this already been resolved with regards to your cross your holdings? Thank you for the two questions. First is the progress rate about our strategic equity holdings. That's our first question. This is Sankayama speaking. Please refer to page 6 in the presentation at the top in the box. It says 102.5 billion yen in the box. And it's a little bit over 20% when you compare it against our full year plan of 476.3 billion. One-fifth on a mark-to-mark market basis. Regarding the overhang concern about the sales of our shares, corporates that own large portions of our stock, the overhang issue has pretty much been resolved already. You can look at it that way. My second question is about auto insurance and the average payout size as well as claims frequency. Has it exceeded your full year expectations or your company expectations? So claims frequency as well as the average payout as well as the progress was the gist of your question. This is . It's on page 17 in the presentation, as we always do. Regarding frequency as well as average payout, we are expecting accidents to go down by approximately 1% in our assumptions. However, result-wise, it didn't go down that far. On the other hand, for average payout, We were assuming that it was going to go up by 7-8%, but actually it went below our expectations as a result. That's all from me. How about Glyn's frequency? Has it been going up or down? Well, our assumption was that it was going to go down, and result-wise, the number of accidents has went down as well, but it hasn't went down as much as we have initially planned. So if you net the both out, Hldgs Ord Domestic Loss Ratio Hldgs Ord

And I think the reversal of losses related to onerous contracts causing positive impact here. Am I correct? And if yes, what is the size of the impact? And if we exclude this factor, what could be the actual magnitude of the improvement? That's my first question. And another question is about fire insurance. Serious losses, large-scale losses this year. What has been the situation compared to last year? Thank you. Your first question is the loss ratio. First of all, voluntarily auto, loss ratio is improving, but if we exclude the contribution coming from reversal of losses related to honors contracts, what could be the situation? And also, you're also inserted in FIRE. Nagayama speaking. If you could Please take a look at slide number 16. You will find domestic, voluntary, auto, and within sub-bracket, excluding NatCat. 2026, the ratio was 59.4 billion, 4%, so increased by 1.5%. And yes, reversal of the honor contracts losses included here. And if we exclude this factor, actually, The ratio increased slightly on year-on-year basis. And the reason is because, first of all, the average repair cost rising. And because of this reason, mostly, the ratio has been deteriorating. And your other question is five-year large-scale losses. That's because five-year loss ratio also improving. So I am interested in to know the situation of the Large Scale Losses. And by the way, on Earth Contracts, you also have with Fire Insurance, right? What is the impact here? Fire Insurance, first of all, Large Scale Losses, combining MS and AD on a total basis, almost flattish year on year. And if we exclude on us contract, in fact, excluding the factor 2.7% improvement. But if we exclude this factor, the improvement could be 4%. And I think that fire insurance, because we've been able to revise the rate and also taking the development into consideration, we've been able to make improvement. I see. That means even as of today, you still have additional on us contracts. Am I correct? No, no, no, no. Because honors contract reversal, if you exclude, improvement could be 4% or more. Right. So honors contract is causing negative impact on year-on-year basis. Right. because on us contract is it you still have additional new on us contracts otherwise the excluding on us contract the situation could not be worse. Fire insurance reversal of on us contract continuously happening The reversal on a, by the way, total basis, not only FHIR, total basis reversal has been increasing. Understand. But if we only look at FHIR, loss ratio improves by 2.7%, but if there was no honest contract impact, the improvement could be 4%. That's what you're seeing. Right. So, reversal of the owner's contract losses, if that was causing positive impact. No, the reversal amount has been less this year compared to last year. I got it, yes. So, meaning that positive impact coming from owner's contract has been smaller this year compared to last year. Last year, the reversal amount was much more. That's why. Yes, by the way, fire insurance, the reversal of losses of owner's contract is going to be smaller year after year. So, the positive impact may become smaller, but still, because the contract period is long for fire insurance, the positive impact is going to continue approaching 2030. My second question is, if I look at your balance sheet, there's ¥324.9 billion in intangible assets and I think the number was like 500 billion at the end of the last fiscal year and it decreased but Q1 the number did not increase although there was should be bearing impact so were there any factors also incorporated here Intangible Asset Yes, the balance is now ¥324.9 billion. These are the biggest intangible assets should be software, amortization, or M&A related. The intangible assets included, thinking about goods though, approximately ¥40 billion in other intangible assets. We have like ¥70 billion in, which are incorporated within this number. But Barclay, or They are not our subsidiary, so they are just an equity method abbreviate. So they are not included here. They are not part of our intangible assets. Their contribution is coming under a profit or loss coming from our equity method abbreviates. Of course, investment in partly fair and varying fair making, but that has nothing to do with our intangible assets. I see. Thank you.

Thank you very much, Sujino-san. Next is Tokai Tokyo Intelligence Laboratory, Mr. Majima. This is Majima. be going into detail about page 29 where you talk about MSP life and the CMS CFM balance because you were talking about the CMS balance increasing mainly due to CNSM variable products as a result of rising stock prices, but how are we supposed to look at it? What is the logic behind this? We're on page 29, which was a question on CNSM balance. This is Nakayama speaking. We are on page 29, and the third comment that we have So the balance increased by ¥10.6 billion for this bullet point regarding assumption change. For variable products, because of IFRS 17, there are three ways of measuring it, and there is this variable commission approach. That's the way we do the calculations. For variable products, it is a customer account, so as a company, We receive fees. So it's a fee-type business. So when soft prices appreciate for the special accounts or the customer account increases against the AUM, the fees will be incurred. So future cash flow inflow will increase. And that is why future profit or CSM, the balance increases. So that's the logic. So it's a little technical, but that's the logic under which this has been increasing. Thank you very much, I see. My other question is also a technical question as well, apologies. For other non-life insurance companies, for Q1 seasonal factors associated with IFRS, there were some peers that have been commenting on that. I think if your first IFRS results Announcement. So have you been impacted by IFRS factors in Q1? So that was the question on seasonality impact from IFRS. That was the second question. This is Sakayama speaking. Regarding the premium distribution approach, when you distribute of the premiums as a rule, you are able to account for seasonality. But in the case of our group, when we implemented IFRS and did the analysis, we have deemed that there is no seasonality. Therefore, in accordance with that period, it will pass. So the earned premiums will be incurred, basically, in accordance with that period of time. Depending on the company, sometimes they do have seasonal differences because of certain parts of the year where there are more natural capacities. But in the case of our company, we do not account for that seasonality. Thank you. I see.

Thank you, Majima-san. Next, Mr. Sasaki from Nomura Securities. I am Sasaki from Nomura Securities. Thank you for the opportunity. I have two questions. If I look at slide number 16, combined ratio, and if I look at Tan Shin, there's a detailed material attached. And if I look at number 11, the combined ratio there, the number is different. Is it because the definition of combined ratios are different? Thank you, Sasaki-san. The combined ratio, the number we have on this presentation material and the number we have on Tanshin's are different.

That's what you're saying.

Nakayama speaking. Yes, as you're understanding, the definition or the scope of the combined ratios are different. The presentation material, if you look at slide number three, You will find how we are disclosing. If you look at MS, we are categorizing into three categories, domestic, non-life, and international, and domestic life insurance. And we have business domains, as you see in our material. So this is not about the entire company. We have three business domains, and based on the domains, we are calculating. But financial accounting, we have numbers for MSI. It's on a company basis, not on a domain basis. That's why, depending on financial accounting, And Managerial Accounting, the numbers are being different. Okay. If that's the case, on your slide, you say combined ratio for the domestic non-life. I think that means you're not including international. And this international portion, where can I find the number? It's part of the international. The number is not big. But if you look at page 21, we have Thai in Asia. That's part of Asia on slide number 21. But generally speaking, subsidiaries numbers are big. I see. My second question is the progress to achieve your full year guidances. From now on, NETS can't impact likely to be bigger. That's why you are currently maintaining your forecast. But I think your progress ratio is performing well. And compared to your annual expectations, how should we see? Because especially over international, their profit growth was big in Q1, and could we believe that Q2 onwards, this growth momentum is going to be maintained? And if possible, strategic equity holding, no plan to change, no change. Are you expecting? It's another question. Well, the progress to achieve our full year guidance is. And related to the question, strategic equity unwinding was the latter half of your question. Now, Kayama speaking, as you're understanding, as we are showing on slide number 10, the progress ratio, yes, we are being able to make a good progress at the end of Q1. And Even compared to our internal Q1 expectation, we've been able to outperform. Especially international, the progress ratio has been higher for sure. But international, the market, for example, share prices are trending well. That is one of the reasons for the outperformance. So Q2 onwards, we need to continuously pay close attention. And Expense ratio is 12. It's just at the end of Q1, so we should not be able to tell whether we can maintain the same momentum. So on as needed basis, we may want to revisit the numbers, but maybe not. And unblending the strategic shareholding at the beginning of the fiscal year. Well, at this moment, we are saying that we do not have a plan to revisit our annual guidance. But market momentum has been better than expected and it is likely that unwinding your cluster holding is going to be accelerating. But are you just keeping the initial guidance? Or is there any reason why you still do not revise your guidance? Well, as of now, we do not think we are currently in a situation to revisit the target. But we will continuously consider whether we can further accelerate or not. But as of now, we do not think we need to revisit the annual target. Understood.

Thank you. Next person is Mr. Sato from JPMorgan Securities. This is Sato from JPMorgan. Thank you for taking my question. You were saying international was stronger than your company plan earlier, but how about your domestic business? It's your first quarterly results announcement after the implementation of IFRS. For natural catastrophes, your budget is quite big. I would like to hear about what your view was on the progress you've been making during Q1. Hldgs, thank you very much for your question. First is about the domestic business and our comparison against our plan as well as the progress made. This is Sangayama speaking. Natural catastrophes was actually better than planned. For natural catastrophes, it was less than expected and for other parts like investments, When you look at investment management, we have been able to exceed plan, at least so far. So we are seeing things steadily progress. That's all for me. Thank you. Second question is about the impact from softening of the market. You were talking about the Americas earlier. But since you're around , what about the European business and the material? Regarding the impact from softening, you spoke about it somewhat. And I think you accounted for it in your plan as well. So compared to your assumptions, how do you view the current trends? Thank you for your second question. Second question is about the softening of the market cycle, especially in Europe. Well, first, regarding AM1, as assumed, centered around property, we have been seeing the market softening. And we have accounted for this in our plan, broadly speaking, but for some energy lines of business, we have been seeing a decline in revenue. So that's where we are right now. For the softening of property, in order to secure profitability, We have been able to secure profitability from a technical standpoint, so at this point in time, we have no major concerns. However, regarding future softening impacts, we would like to consider various countermeasures when it comes to underwriting. For me, for property, we do recognize that softening is happening, but in our portfolio, Hldgs Ord Hldgs Ord Hldgs Ord Hldgs Ord Hldgs And the energy line of business is deteriorating, so it's very specific, I guess. Well, even for energy, the impact has not exceeded our plan substantially when it comes to negative impact. So I would say, broadly speaking, things are progressing in line with our assumptions. Thank you, I see.

Thank you, Sato-san. Next, Mr. Niwa, UVS Securities. I am Niwa. I have two questions related to natural catastrophe. The first question is page 10, including next character. You're being able to make good progress in unwinding your strategic shareholding, but next year onward. Can we expect that the momentum is going to continue? How should I understand that number being big? Thank you, Niwa-san. Progress ratio how we should understand was the first part of your question Nakayama speaking it's difficult to evaluate because this is our first year adopting IFRS and even within our expectation we were not expecting the number to be that high but underwriting because of the list number of Disasters and also share prices have been trending low so dividend as well we've been able to receive more than expected. We should not say this should be considered as the normal situation so we will keep observing the situation and we will figure out which level we should consider as the norm. Again, we should not consider this Q1 result is going to be the standard or average for the coming Q1s in the future. Another relevant question is possibly the group total exposure, natural catastrophe related risk. Are you taking so much or are you being very conservative? Is there any color you can share with us? Natural catastrophe fund. Yes, we have 150 billion yen equivalent in Japan and modeling. We're taking into consideration. We are calculating appropriately. So we do not think we're being too conservative. We believe that we are judging appropriately. Thank you. And the next question is about Kumamoto earthquake. Any comment you can make related to the expected impact? Thank you. Kumamoto earthquake, potential impact on our earnings. Nakayama speaking. The earthquake in Kumamoto The loss situation, we have not been able to have full visibility at this moment. Of course, OEMs, automotive OEMs or shopping malls or semiconductor related companies are operating in the region. So certain loss should be expected. But at this moment, it is difficult to discuss the specific numbers. On the other hand, talking about the earthquake, we are arranging for reinsurance. And as you have pointed out, We do have 150 billion yen equivalent fund, focusing on natural catastrophe. So we believe that all in all, the situation should be controllable within our control. Thank you. Compared to 10 years ago, because Q2 economy has been developing, And you're underwriting May. Situation may be different now compared to 10 years ago. So any color if you compare that recent Kumamoto earthquake impact versus the earthquake happened 10 years ago. I could not fully listen to your question, but you're asking to compare the current exposure in Kumamoto compared to 10 years ago. Was that your question? Yes. If there's any color you can share with us. As of now, there are not enough information or data to compare the current situation versus 10 years ago. Because first of all, the place where the earthquake happened, not exactly the same compared to 10 years ago. So even if the exposure may be the same, actually it's not going to be the same, but even if we assume it's going to be the same, the size of impact should be different. So it should be difficult to make specific comment at this moment.

As we are approaching the end of our allotted time, we will now conclude the Q&A session. If there are any questions we were unable to address today, please feel free to contact our Investor Relations Department. We will be happy to respond to your inquiries individually. This concludes today's conference call. We kindly ask for your continued understanding and support for the business activities of our group. Thank you very much for joining our earnings conference call today.