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We now like to start earnings announcement for the first quarter of the fiscal year 2021. Thank you very much for taking time out of your busy schedule to attend the conference call today. I am Fujiki from the IR office and will be serving as today's facilitator. Thank you for your cooperation. First, I'd like to introduce the attending members today. Representing member of the board Senior Executive Vice President, Mr. Shimada. Senior Vice President, Head of Finance and Accounting, Mr. Nakayama. Senior Vice President, Head of Corporate Strategy Planning, Mr. Taniyama. We have these representatives attending. The audio of announcement is streamed live on this website. This also will be distributed on demand at a later date, and we ask your understanding. And after this, the earnings results presentation, we will have the earnings results announcement of NTT.com. We would like to seek your attendance as well. Today's presentation materials are posted on our IR website, and please refer to them. On the first page of the presentation materials, points to be considered are stated, so we would kindly ask you to read them through. After this, Mr. Shimada, Senior Executive Vice President will explain the overview of the financial results, which will be followed by a Q&A session to take your questions. Mr. Shimada, the floor is yours.

This is Shimada speaking. So, I would like to explain the financial results for the first quarter of fiscal year 2021. I would like to take as many questions as possible. Therefore, for my explanation, I would like to make it brief. First of all, please look at page 4. Both revenue and income exceeded expectations. That was the quarter's result. As for the operating revenues, it was 2,892,000,000,000 yen, up by 126.1 billion yen year-on-year. Operating income was 486.3 billion yen down by 11.3 billion yen year-on-year. Profit set a new record high of 340 billion yen up by 67.3 billion yen year-on-year due to the positive impact of bringing in the profit that would have been of minority shareholders by wholly owning Docomo. As for overseas sales, increase compared to the previous year due to the increase in the system integration of entity data revenue by capturing the strong digitalization demand. Overseas operating income margin has improved as a result of a higher revenue in entity data as well as positive effect of the structural reform initiatives. It was a 4.1% up by 1.9% year on year. Next page, please. I will explain the mobile communications of business and the long-distance international communications segment. As for the mobile communications business, though revenues declined due to low rates, overall had an increase in revenue compared to the previous year due to increase in hard handset sales as well as expansion of smart light business such as finance payment. On the other hand, due to enhancing measures for further growth of smart light business and expanding the 5G areas, operating income declined against the previous year. And by continuing the cost reductions for the full year, we are aiming for both increase in revenue and income. As for the long-distance and international communications business, there was a special demand for conference revenue last year at NTD Communications, which did not occur this fiscal year. And there was an increase in structural reform expenses at NTD Limited, therefore both revenue and income decreased. And at the I did skip a lot, but please go to page 14.

Well, in order to improve the capital efficiency and also enhance the shareholder return at the Board of Directors meeting held today, and up with a maximum of 250 billion yen of the share buyback was resolved. And also, EPS was the target for this 320 yen in FY2022 and forecast of the free cash flow and debt repayment for the term has been well considered. And with this, EPS target for the FY2021 has been revised to 302 yen from the 300 yen. Our basic shareholder return policy remains the same to increase dividend in a steady manner and also to conduct the buyback in a flexible manner to improve capital efficiency. That's it from me. Thank you.

Thank you very much. Now we would like to open the floor for questions. As for the questions, as we have previously notified you, for those of you who have pre-registered and connected to this conference system will be the ones to ask questions first. How to ask the questions will be explained by the operator.

We would like to start the Q&A session. Those of you who have questions, please press 0 and 1. And if you would like to cancel the question, please press 0 and 2. Mr. Masuno from Nomura Securities, please.

This is Masuno speaking. I have two questions. The first question is regarding the over all EPS at 320 yen being achieved ahead of the plan and 250 billion yen of share buyback. And also reviewing the midterm business plan, the EPS and share buyback, the information is coming in separately. This 320 yen achievement being achieved one year beforehand is this link to the review. of the midterm management strategy, and is that going to link to the share buyback of 250 billion yen? Can you once again explain in order of each one of them and their relationship? First of all, regarding the 320 yen achievement of EPS a year ahead of the plan, I would like to answer that first. we wanted to put an effort to achieve it a year ahead of the plan. When we made the announcement of the last ended fiscal year financial results, this is something that we verbally have conveyed. However, as we have been speaking with our investors, if it's not placed in writing, the factual relationship is not clear is what was mentioned to us. That is why we have actually written it down. So in that sense, the midterm management plans are reviewing the relationship to that. It is not directly related to that. So in that sense, it's just that what we have verbally conveyed to you last time, we have put it in writing as a record. And furthermore, This is a 250 billion yen share buyback. This basically every year we conduct a share buyback in a flexible manner. And this has been our basic capital policy. So based on this, we have made the decision to conduct the share buyback. So in a sense, This is not directly linked to the reviewing of the midterm management plan. That is all from my side. I just want to confirm, when there is a review of the midterm management plan, is there going to be more of a detailed EPSL target that will be assured? Yes, probably so. Okay, understood. My question is regarding each segment's performance for the last three months. Honestly speaking, there were business segments that were strongly performing and ones that were not doing so well. They were all mixed up. The regional communications, the IP network and the packet and the cost control was done very well. But on the other hand, as you have explained, NGG Limited the equipment and device sales has gone down due to structure reforms and the personal expenses went up. Therefore, it seems as the structure reform is not progressing well. So can you explain the background of that? And for the domestic business, of course, there was a special demand last fiscal year. But within the COVID-19 situation, the digitalization demand is increasing. But within that environment, The revenue has gone down, and that is unfortunate. So how are you looking at this actually increasing? And the mobile communications revenue has remained at $10 billion. Is that intentional, or can you control that? Can you please explain about that before this quarter? Thank you very much for your question. This is Ashimada speaking. So in the order of how you have asked your question, I would like to answer. First of all, regarding NTG Limited, it is a result that is difficult to understand. When there was the forecast that was announced, we were not able to give you the detailed explanation of the structure. and that is probably why it is not clear. However, for this fiscal year's plan, there's one major factor. Throughout the year, the structural reform expense of 28 billion yen is what we are expecting. The last fiscal year was 8 billion, so compared to the previous year, it has increased by 20 billion yen. The content of this In a way, it's streamlining the headcount. That's equivalent to one-third. And also, the service migration to cloud and et cetera, that's one-third. And organizations are reforming and integration. IT integration is one-third. The reshuffle, reorganization is Europe and APAC, of course. Such efforts were made by country. But in addition to that, by region, for example, in Europe, the UK and the European continent was managed separately, but that is going to be integrated. And also Australia and Asia region was separately managed, but we are going to manage that as the one APAC moving forward is what we have started doing this fiscal year. So relatively speaking, in the first half, all of these efforts are concentrated. And by doing so, within this fiscal year, about 18 billion yen increase of a profit positive effect will be generated. And from fiscal year 2022 onward, about a 23 billion yen of a profit boost effect is what is expected from these efforts. So for the first quarter, the structural reform expense is 8 billion yen. Compared to the previous year, it's a 6.5 billion yen increase. Mainly, the breakdown of this is streamlining. And this is, as you have mentioned, Masuno-san, is a link to the increase of the personnel expenses. And in addition to that, last fiscal year, the former ARCA-DIN conference-related services, there was a special demand last fiscal year due to COVID-19. And there's a reaction of about $4 billion. So in a total, for the first quarter, $6.1 billion loss was the result. And this time, or for this fiscal year, the structural reform expenses, all of that is incorporated. And in a full year basis, $22 billion of operating income achievement is the plan. So up to the second quarter, the structural reform expenses will be recorded. But Q3, Q4, we will recover from that situation is what we are planning now. And in line with that, if you look at the supplementary material for the financial results, you'll be able to see this. But what is happening for the revenue side or the sales side? Overall, the high value added service, but it has increased to 43%. The annual plan is 39%. If you look at the breakdown of the individual high value added service, data centers and managed services compared to the last fiscal year, they're increasing their revenue of 32%, about 32%. And as for network, about a 4% decline has occurred. Currently, in a concentrated manner, as for the network, we are making proposals. And thanks to that, within the Gartner's Magic Quadrant, within the leader group, so the right top position is where we are for this year. Therefore, in that sense, We were highly evaluated. Therefore, moving forward, we can have high expectations at the network business. For cloud, as I have mentioned briefly, it is in the midst of service migration. Therefore, after we migrate as a multi-cloud, we would like to grow this business. So for the conventional businesses, we are compressing it. It's about a 10% decline. And regarding the communications, the NTT communications, Japan domestic business, fiscal year 2020, the first quarter, when there was a declaration of state of emergency, there was the conferences and the a toll-free number of special demand that has occurred. So compared to that, this fiscal year, we don't have that. So there's a decline of that part. And the last fiscal year in the fourth quarter, starting with the online classes as a trigger, there's a system integration demand has occurred. So for fiscal year 2021, that is not going to exist. So in terms of the revenue increase plan, it is in a small degree. However, as digitalization advances, the solution cloud data network being expanded, and due to that, we are going to put in effort so that we will be able to achieve increase both in revenue and income. And also, regarding NTT Docomo, this time, we have not disclosed this, but the planned It's a result that has exceeded the planned figures. As for Docomo, the 5G expansion is done in the planned and also using the expenses in advance matter resulted in the results, first quarter financial results. To begin with, had a plan that is going to be a decline in profit. But it has been performing above that plan. And the investment is done in an advanced manner, more than the fiscal year. And as a result of that, the 5G-related depreciation or retirement expenses and the network usage fee is increasing. So the expenses are used in a strategic way. The sales are related matters. or the finance area within the smart life business. They're using sales expenses, so that is being recorded. And as a result of all this, the 5G network's dedicated spectrum, the base station, Docomo, in accumulated matter, has constructed several 10,000, but the competitors are one-third or one-fourth of that. And so the light speed of these stations, Docomo is constructing them in an advanced manner. Thank you very much. If that is so, where it says the decline in profit with Communications Limited and Docomo, it was in line or there was an extra. For NTT Limited, it seems like the number is bad. However, this April, the CEO changed to . But before we enter this fiscal year, regarding the plan, we have had thorough discussions and discussed that we need further streamlining and that has been reflected in this current plan. So we are progressing in line as a plan that is same for entity communications and limited to. Thank you very much. That is all from my side. Thank you very much, Mr. Masuno.

We would like to take the next question. Mr. Ando from Daiwa, please. Well, Ando speaking. Can you hear me? Yes, we can hear you. I have two questions as well. The first question I have, and they were, I was really watching the press conference, and once again, I'd like to really ask the following question. Entity, Docomo, KPI, subscriber numbers, and also the 5G, and also, and the revenue. And as for these four factors, well, from the entity holding perspective, well, how do you really evaluate the progress with respect to these KPIs? Himada speaking. First of all, with respect to NTT DOCOMO, with respect to AHAMU, as has been well mentioned by Mr. Sawada at the press conference earlier, and 1.8 million contracts have been really well signed, and so we are thinking that we are making steady progress. more in terms of Alpu and others? Well, there was some perception that AHAMO will bring down Alpu, but well, actually in the 20 giga, well, we have this kind of the upselling. And particularly with respect to AHAMO, approximately half of these people are while are in their 30s or below or younger. So, in that sense, we are really making the world progress or the growth in line with our expectation or in a very, well, steady manner. And there are some key points in the businesses and smart life domain. and particularly finance and settlement or payment-related in the next quarter. Well, 2 trillion yen at the raw sales has been achieved. And compared to the previous year, approximately 30% of growth or it has been multiplied by 1.3 times. And so going forward, this finance and payment-related service is expected to grow And we have already observed this kind of the sign of the potential growth. So in that sense, well, there are some areas where we were behind the competitors. And in order to catch up with them, well, cost has been incurred to a certain degree. But those of the retail outlets, who are really having these kind of businesses. And we are coming closer to the number of those of the competitors. And so we think that the steady growth has been achieved. As for the churn, we have a slightly worsening trend. But it has been maintained at a relatively low level. And so we are not so much concerned. And that's what we can say about this. And Ms. Ando, do you have any specific theme that I should cover? And we do have the earnings results announcement from NTT DoCoMo, and so I think we'll just have a brief, while the overview could be, we're just fine. And the second question, and you have explained the results by segment. And the regional communication, I don't think you have made much of the reference to the regional communication. Looking at the numbers and fixed and voice for the communication revenue, it's not really declining too much. And so it was difficult to understand 100% fully. But as for the regional communication, is there anything that you would like to really mention about the business performance of this segment? Regional communications. net ads of the Hikari business, and the churn has been reduced. So, steadily, we are really adding the number of contracts, and particularly in the last fiscal year, because of this remote work environment, and we had a significantly higher level of demand. And so, IP packet revenue were both for the entity east and west. And we have seen a substantial work growth, which has resulted in a big sort of drive and a driver to increase revenue and income. And in the Western Japan or West, the contact business, the subsidiary company has seen a significant growth in revenue because of the COVID-19. related to the response by the call centers. And there was the increase in the demand for such. And also the e-books, . I think what this is were driven by the demand of the people staying at home. And so these were two businesses have already made a contribution to our income growth. And fixed and voice communications related And we have seen a smaller decline compared to the last year. And this is Taniyama from the corporate strategy planning. And I think there is a difference between the east and west. And the reason why we have the smaller number of fixed voice revenue decline in the east And we have some more positive because of this Olympic Games. And so because of that, we have some slight difference between, well, NTT East and NTT West. Thank you for that. Thank you, Ms. Dando.

I'd like to take the next question. SMBC NICO Securities. Mr. Kikuchi, please go ahead with your questions. This is Kikuchi speaking. Regarding the financial results, All of the questions I wanted to ask was already asked by the previous people, but regarding the management, in the last result announcement held in May onwards, what were the things that, the initiatives that was led by Holdings? Well, there's some reported in the news, like you bought the shares of NEC, and there were various things that have occurred, but I haven't seen much this year, so... Sawada-san, Shida-san, Shimada-san. What have you been doing is what I would like to know. Mr. Kikuchi, thank you very much. It's not that I was just daydreaming every day. It's just that, well, there are things that I can share with you and there are things that I cannot share with you. And there are things that we're doing that we cannot share with you also. In fact... Due to the fair study meeting on ideal way of ensuring fair competition, there are some delays in what we can share with you. And regarding the discussion of the content itself, it is progressing. At the current situation, when we'll be able to make the announcement will all depend on when the report will come out from MIC. So I cannot say anything clearly yet. But we are working on the management that we will not fall behind schedule. So in that sense, from next fiscal year onwards, we would like to make it a way that we will be seeing a sure effect. And questions that we've been receiving from you previously regarding the synergy effect and others, We would like to make it a way that we'll be able to give you a specific explanation, and I kindly ask you to understand that. The second question is the securitization of the assets. I believe that you are going to actively progress on that. I looked at the briefing session material, but there was not much of a mentioning. So, was there not many of an activities in the last three months? In each telephone offices, the towers on top of the base stations were telephone offices. You were going to carve them out, I believe. Can you explain that? What we have started is that the off-balancing the data center assets. One, we have already made an announcement in India, in Mumbai, the Tokyo Century has a 75%. Well, we will collaborate with them for the data center there. And moving forward within this fiscal year, we would like to make things more clear. So, data centers also are balancing. It will be more of a medium-term initiative, and I believe that we will be able to come to a time that we can give you explanations. And related to data centers, this fiscal year, it's about 130, 140 billion yen of investment with their own capital, which is in line with the previous years. But for the external capital, we would like to bring in about one-third of the required capital from external sources, or third-party capital from external sources, which is about 200 billion yen. So in total, that amount will be invested in data centers. There's a demand for data centers. So for the new data centers, we'll bring in the third party capital. The management and operation of the data centers will be done by NTT, but we will go in that way. And regarding the existing data centers, we will be managing the data centers. But where it is necessary, or how should I say this, the data centers that can be off-balanced, we will off-balance them. In that sense, the structure of the network needs to be considered, and so we will determine which will be kept with us and which will be off-balanced. And as for real estate and property assets, this is related to Urban Solutions Group. And this year, as for selling the real estate, it's about 400 billion yen of real estate is planned to be sold. That is because the housing property rotates, but for offices, depending on the area, or how are we going to consolidate our locations, depending on that, we would like to replace the assets, or if there are real estate that's better to sell, we will, and we would like to optimize the real estate assets. And also, that's about it. Thank you very much. That is all. Mr. Kikuchi, thank you very much.

We now like to take the next question. And Tanaka-san from Goldman Sachs, please. Well, thank you for the opportunity. Tanaka from Goldman Sachs. I hope you can hear me. Yes, we can hear you. Thank you. With respect to NTD Limited, I have two questions. The very first question, once again, I'd like to seek your view earlier in terms of the restructuring cost and also the effect of the reorganization has been well mentioned. And while you are really expecting to have a stronger sort of effect in the next fiscal year, And the restructuring cost, $28 billion in this fiscal year, and after spending this much, in the next fiscal year and beyond, do you think this is going to be reduced? Or do you have to keep that level of the investment? Of course, this is something about the future, but how should we look at the restructuring-related cost? This is Shimada speaking. As for the restructuring and the structural reform, we have been doing this in the last two years. And in that sense, with respect to this scale of destructural reform, we would like to end this by the end of this fiscal year, hopefully. However, with related to IT, and as I have said, for reorganization, if that is being done, and we may have to review, and that could be required, and so in that sense, Rather than the structural reform, but the strategic investment and also some spending might be more necessary to a certain degree. And also, as for the new business deployment, and that's something we need to really consider and look into. And the skills of the personnel is really what kind of attached to the business itself. And so the human resources might be replaced depending on the business we are to embark upon. But we do not really expect to see the same level of disbanding in the next fiscal year. That's our observation. Thank you for that. And the second question, high body added services is showing a strong growth. And of course, there is a growth from the rebound of the COVID-19, and it is not going to continue as it is. But, well, the outlook for the second quarter and beyond, and by product, you have really shown the growth of the results by product, but not by region. And if you could just give us some kind of image of how this has been growing. Simada speaking, related to data center, there are not much of the regional variances or differences. However, by region, where we see the impact is the areas where the higher impact or the stronger impact from the COVID-19 is affected because for the Naturally, there is a negative factor for the sales activities and others, and so that has been sort of the impact. However, going forward, what we need to reinforce a little more is the U.S., in case of Europe, the U.K., and Germany, where we have bigger markets, and we need to really upgrade our efforts to reinforce the business here. And so... Of course, due to the COVID-19 pandemic impact and also in terms of the market scale, on our part, we do not have a higher market share there. And so we would like to really focus on these regions to really accelerate the growth going forward. Thank you. Tanaka-san, thank you very much.

I'd like to take the next question. BOA Securities, Mr. Kinoshita, please go ahead. This is Kinoshita speaking. Can you hear me? Yes, we can hear you. I have two questions also. The first question is a bit detailed. However, the non-operating area, the financial income and equity method applied income is improving than the previous year. Is this a one-time effect or what is the background of this is what I would like to know. That is the first question. This is Nakayama from the accounting, finance and accounting. With the financial income is a 6.5 billion yen increase year on year. The received dividend Last fiscal year, we have acquired the shares of Toyota last year, and we have received dividend from them, those shares. So that's about $4 billion increase. And also, equity method, the Tokyo Century lease, we have incorporated their profit. So basically, naturally, organically, these increases are occurring, yes. That's the correct understanding. And my second question is you have announced to conduct a share buyback. And in an annual basis, you will do that. But looking at the past track record, I believe that announcement timing was earlier than the past years. It's up to next March 31st. However, do you have any thoughts that you would like to conclude it as soon as possible? This is Shimoda speaking. No, we don't have such intention at all. It's not that we want to do it quickly or as such. No, we don't have that intention. We're just naturally going to conduct the share buyback. So within the fiscal year, you will be conducting the buyback. Yes, you're correct. Okay, thank you very much.

Thank you, Kinoshita-san. So we would like to move on to the next question. Takahashi-san from UBS for Securities, please. I have two questions. The first question is, is with respect to the review of the EPS and the point of qualification. And the event to make Entity DoCoMo a wholly owned subsidiary company, and then automatically you will have further boosting of EPS by 50 yen. And based upon that, the basic starting point is for 320 yen plus 50 yen and 370 yen might be the starting point. And there has been no change in terms of direction to be pursued in the midterm by DOCOMO. And well, can we just take this view, or if there is any different way to look at it, what are the factors which are you assuming that you will not be really well in line with that? And basically, the target for FY2023 is to be reviewed. Is that the right understanding? Well, as for the review, and this is Shimada speaking, as for the review, at this point in time, what we are thinking is FY2023, well, number is to be reviewed. At that point in time, from your side, and well, people are really saying that we should have this plus 50 yen, but on our part, basically speaking, And this is one of the forms of the M&A. And so inclusive of the M&As, we were saying that the target is 320 yen. So it's not that we could just add 50 yen on top of the 320 yen. So that's what we would like to really say. But of course, based upon the feedback from your side, We would like to really reflect your views, and then at the appropriate timing, we would like to really announce that review numbers. So may I ask the second question? And as for the PSTN migration in January, well, 2024 is the timing, and so it is slightly just into the future. But you are really assuming the potential financial impact what should be the potential financial impact from this migration. Shimada was speaking, and PSTN migration, financial impact is not really expected to be large. And so basically, within this for the depreciation, we will be able to really manage and accommodate. And so it's not that We ought to add on anything new on top of this. So we don't expect, well, major financial impact from this. That's our understanding. And the voice, well, our telephony already, well, voice communication along to, well, distance communication, the unit price is expected to go down. And so there could be some impact on your revenue. What do you think of this? It is exactly true that and so we have seen much of the reduced on a volume based for rates and then it is basically based upon the basic rates and so of course it is going to be declining but in our view it's not going to be a significant impact in any way. Thank you. Thank you. Thank you, Takahashi-san. We now like to take the next question.

From Credit Suisse Securities, Mr. Eguchi, please go ahead with your question. This is Eguchi speaking. I have a question regarding NTT Limited also. you are conducting a structural reform and probably from next fiscal year onwards, the structural reform expenses will be recorded. Looking at the mid-term operating income margin target, what is the progress? I was thinking that maybe you are thinking of some additional expenses for the structural reform, but I'm just wondering at what point is it going to get close to what you are expecting? If you can explain it including the timeline, sense of timeline will be very helpful. Thank you very much for your question. Basically, the current structural reforms that we are conducting and including such efforts the operating income margin target of 7%, the road to achieving that, we are on track. At this current timing, conducting the structural reform, well, in the last two years, we have changed the organization in a way. We were integrating the companies with subsidiary companies attached to them. So the brand and the organization itself at each country, as a unit, the integration process is close to completion. However, in order to deploy the high added value business, Rather than the just integrated organization, we wanted to make it into a better organization. And in order to achieve that, we have decided that the structural reforms should be conducted this fiscal year. It is difficult for me to say that the process is accelerating. However, at least regarding this fiscal year's planned target, our understanding is that it has become to one that they'll be able to achieve those targets. And based on that, in fiscal year 2023, we will be achieving 7% will be the target. Therefore, it is one of an important key position in order to achieve the midterm plan for the global business. And the second point also is regarding the overseas business, including NTT Limited. Well, last year, due to the COVID pandemic, the whole world has changed. And how the companies are investing towards IT has changed too. And I think your company has done a structural reform in a good timing. And I think you're in a phase now that you can actually go with the momentum. And then you did another structural reform, and then you changed the management again. So it seems that the governance from the holding company in Japan is that fully being conducted. I thought I had some concerns regarding that. Thank you very much for your concerns. And this spring, the entity limited the CEOs has changed. And In order to lead this integration, we thought that having Jason taking over, it is easier to integrate. However, in order to go onto the next phase of growth, integration from the phase that we put importance on the human relationship. We need to change the talent to people who can overcome issues to deploy the new business. So we have been selecting the talent in a strategic manner to do so. And thanks to those efforts, entity data for digitalization is the base of the global business. And also, we can say that there's strong demand for the digital services. Therefore, the managed services demand is becoming stronger. Therefore, as you have mentioned, as a timing for structural reform, we were able to do that in a good timing. and meaning that changing the human resources and others. And this fiscal year, we would like to come out with a certain outcome, and if we can bring up the margin to 6%, we will be able to see the next phase of the prospects. Okay, thank you very much. Mr. Eguchi, thank you very much.

We now would like to take the next question. Kusaka-san, and from FEMJ, Morgan Stanley, please. Well, Kusaka speaking. I hope you can hear me. Yes, please go ahead. I have one question. So far, when most of the entity, Docomo, was a separate listed company, and then investors had a very high level of interest in Docomo, and now you are integrated, and also what the... And the document is generated in terms of profit is accounting for about over half. And mobile, well, the competitiveness and also the recovery of the limited and in the management elements. The contribution ratio of each individual business seems to be getting smaller. So what I'd like to ask you is, B2B, well, the having the communication with the shareholders and investors, and more on a broader sense of the management of the entity group, what would you like to really emphasize, and on what point you would like to be evaluated? And so I am supposing that you're really going to be more creative in conducting communication, whether you are satisfied with the way you are having the communication And of course, the stock price is to be determined by the market. But vis-a-vis the NTT shares, and what are the factors to drive investors to invest in the shares of the NTT? And so what would be the focus point of your communication going forward? As I have said earlier, and to the communications and to be more integrated and to really work for the enterprise businesses and also to enhance the efficiency of the network utilization. I think that could be, well, the extension of the existing line of the thinking. And I think, well, and others might agree that that would be the strategy. And so in that sense, well, how to really come up with the scope of the new businesses, and that's going to be an important factor. On IR Day, I was really well planned. I am planning to really well talk about this. Carbon neutrality has drawn much attention. And on our part, well, last fiscal year, well, environment vision of NTD group was announced. And 30% of the energy consumption will be supplied by the renewable energy in 2030. However, looking at the trend in the society, this wouldn't be sufficient enough. And so environmental factors is something we should look into. And also on our part, we are engaged in energy businesses and also renewable energy and something like microgrid. What kind of stance should we really take vis-a-vis these words? And this is something we are really asked to really come up with some answers. And so our environmental vision and to what extent can we consume or use the renewable energy? And at what point in time can we really achieve the carbon neutrality? And so centering around that axis, well, how will we be able to really deploy our energy business? And all in all, I hope that we will be able to really well talk more about what we are going to do on our IR day. And so in healthcare, business domains, and, well, different group companies are engaged. And so with the, well, data-driven access, how should we really, well, organize ourselves and what about the drug discovery and how we will be able to really develop the businesses. And we would like to really sort out and organize our thinking so that we will be able to really have the better communication with investors. It could be a little difficult for us to really provide such information overnight, but I hope that you will wait for us to really present that kind of information at a later date. Thank you. Kusaka-san, thank you very much.

City group security, so Mr. Tsuruo, please go ahead. Thank you very much for this information. I have two questions. Many of the questions I wanted to ask have been already asked, so this may be a very minor question, but let me confirm. It is the progress of the cost reduction efforts and the content. It's in the supplementary material, and I think the first quarter is always a slow start, but this time you're planning for 25 billion yen level of cost reduction. You did do that. Where is this going to come out from? And moving forward, how is the cost going to be improved? I would like to know of your outlook on cost reduction. This is Shimada speaking. Well, this first quarter's cost reduction It's the same as the past cost reduction initiatives, meaning that about the 40% with facilities and equipment, and for the sales-related 40% personnel expenses, about 20%. The larger part that is generating that is DOCOMO. From Docomo. Okay, understood. So for the remaining three quarters, I should look at it as what has been done up to now, same as what has been done up to now. Okay, the next question is towers curve out. There was a question already asked regarding this from somebody else in West Japan, NTT West. Moving forward as an NTT holding company, How would you like to curve out the towers? I think the capital allocation, the holding company can control it. So I just want to know your thoughts. So with this curve out that happened, so we will know about buy towers strategy. But I would like to know about your thoughts on this. This is Rashimada speaking at NTT West Tower. We haven't started the carve-out. But also at NTT East, we would like to consider it. How are we going to treat the Dokomo part? It's something that we need to review in specific terms moving forward. However, one major factor is that regarding J Tower, We are a large investor for them. So currently, the 5G base stations within the new spectrum, we have already installed tens of thousands. But moving forward, how are we going to newly construct the base stations? We need to review that first. That is all. So the pricing, when you do the carving out per tower, if you have any thoughts for that, can you share that with us? That is difficult to comment. Okay, understood. Thank you very much. Mr. Tsuruo, thank you very much. Now we would like to take the next question.

Yes, we can hear you. I have two questions. AHMA has been performing strongly in DoCoMo and from the group's perspective, any change in terms of the request from this holding company to the NTT Docomo? And it seems to be somewhat lagging behind in terms of the smart life domain. And that was the sort of comment made. In what areas do you see that, well, the NTT Docomo needs to really catch up? And also, well, I think, well, there is going to be this sort of profit or benefits of integration from NTT communication and So where are you going to really reinforce the foundation and any changes? If you could just enlighten me on that. And Shimada speaking, first of all, with regards to AHA-MO, the effect from AHA-MO is really, well, significant, I think. And, well, constantly, MNMP has been, well, negative. And actually, Well, AHAMO has really well stopped that trend. And within DoCoMo, the mindset of the employees of NTT DoCoMo, and I would suppose there has been a significant change. So Well, they were just thinking that it is really natural that we are seeing this sort of declining market share, but rather, well, they are to really, well, increase the market share. And I think, well, the Alhambra has been really the big factor to enhance the motivation of the employees. And I think this was the most significant impact. And so within NTT DoCoMo, their really well mindset and willingness to win against the competition that has become stronger and which is very important. And so we are really well expecting this to really well come more well from the holdings perspective and also for the smart life business domains. There are some areas where we have the higher profitability and there are some areas which are not so profitable. Having said that, in terms of one unit of the customer to, what would be the sort of the scope of our offering? And from that perspective, whether we should be focusing on center areas, or should we have more broader scope? And I think, well, that's something what NTT Docomo is really trying to decide on a group-wide basis. If we can really support them in identifying that, that would be very helpful and effective. And so in the very first place, finance and payment area would be the priority area. So we would like to really work together with them for that. Do you think that there is going to be more of the cost to be incurred for catch-up? Rather than catch-up and about the settlement or payment areas, we are almost becoming the size on par with those of the competitors, but in enlarging the scope. A kind of upfront investment might be required in some cases, and I think this is where they are. Thank you. The second question. In the first quarter of the previous year, because of the COVID-19 and the revenue of $70 billion and also the impact on the income worth $10 billion, that is the impact. And do you see any changes in terms of the impact? Is it becoming larger or smaller? And from the corporate strategy planning, I'd like to answer to your question. And in terms of revenue and $20 billion impact on revenue and $10 billion, well, domestic and $10 billion overseas. And that's for the domestic. Well, the international roaming of Docomo and Urban Solutions and hotel conferencing-related revenue, well, that has resulted in $10 billion impact and overseas. India and Indonesia, because of the significant impact of the COVID-19, and we have seen decline in SI revenue. And as for the for-profit, and there were 7 billion yen impact. And for that, overseas, basically speaking, well, we had minor impact, and there were the domestic roaming, and also real estate. Well, our impact has resulted in this 7 billion. It's not the reversal, but And so, 90 billion yen were in revenue, and also, there were 17 billion were the income on a yearly basis. Well, this fiscal year, the impact of that is 10 billion of revenue and 7 billion in income. And the 70 billion were last year, and then we have just, what, 20 billion. And also, the operating income, well, we have for just the 7 billion impact this year, but against the 10 billion next year. Visibly, the previous year, you are having sort of the positive. And so you have 50 billion yen reversal on the revenue. And so, yes, for positive of 50 billion, and also in terms of double income, positive for 3 billion yen impact. And I will thank you very much, Moriyuki-san. Any other questions? Those of you who have questions, we'll press for zero and one. There seems to be no further questions, so we would like to conclude the briefing session for the financial results for the three months ended June 30th and 2021.