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Thank you very much for attending today, despite your busy schedules. From here, we would like to start the briefing session of NTT's FY2023 first quarter financial results. I will be facilitating today's meeting. My name is Hanaki from the IR office. First, I would like to introduce the attending members on stage. Representative, member of the board, Senior Executive VP Hiroyi. Executive Officer, Head of Finance and Accounting, Nakamura. Executive Officer, Head of Corporate Strategy Planning, Hattori. Today's briefing is streamlined on audio. We are planning to stream- streamline it on our website at a later date, so we seek your understanding beforehand. As for today's explanation materials, please refer to presentation materials posted on our IR website. There is a point to be noted on the first page, so please read through it as well. Today, Senior Executive VP Hiroi will explain the outline of the financial results first and open the floor for your questions afterwards. Mr. Hiroi, please go ahead.

Thank you very much. My name is Hiroi from NTT. Thank you for joining us despite your busy schedule. We appreciate your attendance. I would now like to present The financial results for the three months ended June 2023. Please turn to slide number four. This talks about the status of consolidated results for the first quarter. Operating revenue increased, operating profit decreased, and profit increased. That is the financial presentation. Operating revenue and profit reached new record high levels as the first quarter. Operating revenue increased 42.2 billion yen year on year and reached 3,111.1 billion yen due to increase in revenue in integrated ICT business segment as well as global business solution segment. Now, of this increase, currency or foreign exchange accounted for roughly 40 billion yen of this increase. As for operating profit, This decreased by 28.7 billion yen year-on-year, down to 474.7 billion yen due to increased upfront costs related to operational efficiency and replacement of facilities, as well as reinforced security in regional communication business segment, as well as increasing electricity costs. Although we do not ordinarily disclose the first quarter plans per se, both revenue and profit are progressing in line with our expectations and our forecast. And we're working to achieve the consolidated guidance aiming at increased profit on a full year basis. As for profit, profit increased 7.2 billion year-on-year and reached 375.8 billion as decline in operating profit and increased interest expenses was covered by proceeds from sales of shares. EBITDA decreased 18.9 billion year-on-year, reaching 838.5 billion due to decline in operating profit. Let me now turn to slide number five. where we talk about the contributing factors by segment. Let me start with the integrated ICT business segment. In this segment, revenue increased year on year due to enterprise and smart life business increase. Well, operating profit declined in part due to accelerated growth investment in smart life business. Operating profit in enterprise business grew from increased revenue as well as improved cost efficiency in the consumer communication business segment. As for regional communication business segment, both first quarter operating revenue and operating profit declined due to drop in fixed line voice service revenue as well as demand for working from home having run its course There was also impact from increase in upfront costs for operational efficiency improvement and reinforced security, as well as increased electricity costs. Having said that, both operating revenue and operating profit are progressing in line with our plans, and we are going to work toward achieving our full-year plan. Let me now turn to global solution business segment. Revenue grew year on year, from growth in domestic business, such as public and enterprise segment, as well as impact of currency. This applies primarily to the overseas business. While increased revenue led to increased profit, operating profit declined year on year due to increase in integration-related costs in our global business, as well as increase in investment for growth. Well, increase in integrated related costs will continue beyond the second quarter. We will work to achieve the annual plan through cost reduction based on structural transformation, and we believe that we are in line with our plan. As for the other segment, operating revenue and operating profit declined year on year due to dropping revenue from electricity business at Enid. Let me now turn to three major topics in relation to the first quarter. Please turn to slide number seven. This relates to establishment of new companies for the creation of new value. I have identified three companies that have been established and new. First is we established NTT Innovative Devices Corporation, which will develop, manufacture, and sell photonics, electronics, convergence devices. We also established the second company called NTT Green and Food Incorporated, which will produce and sell seafood farmed by land-based agriculture systems. Also, thirdly, we have integrated NTT Business Associates and NTT Learning Systems to operate as a strategic company in the human capital field. And they have integrated NTT XC partner. Through this business, we will deliver creation of new value

Next is slide eight. This is regarding shareholder return and regarding share buybacks. Continuously, in order to improve capital efficiency and enhance shareholder returns is the objective, and we have resolved in today's Board of Directors meeting to buy back shares in an aggregated amount up to 200 billion yen. As conventionally communicating to you, enhancing the shareholder returns is something that we would like to continuously conduct, and within the new medium-term management strategy regarding the EPS, we have clearly stated that we are steadily going to increase that repeatedly. Therefore, in order to realize such things, we would like to surely implement the shareholder return that we are sharing with you today. Page 9 is regarding the record of share buybacks up to now, so please refer it for your reference purpose. Conducting the share buyback and by increasing operating profit, we will be increasing the EPS surely, which is leading to the increase of the share price is how we think about this. And on page 10, this is a situation regarding number of shareholders. So I would like you to refer this as your reference as well. FY 2023, end of June, number of shareholders are shown comparison with the end of March. We have announced the stock split, and due to that, We are seeing an 18% of increase of shareholders who show the interest to our shares after the announcement of the stock split. And after the stock split has become effective, what was the status of that? We will not know about it until September. And once we know the status, we would like to share that thoroughly with you. Page 11 is showing the progress under the medium-term management strategy. We have compiled the initiative, so we would like to refer to this later. That is all from my side. Thank you.

We would now like to go on to the Q&A session. We will take questions from those of you who have registered in advance and who are connected to the web conference system at this moment. If you wish to ask a question, please use the raise hand button on the web conference system. If you wish to cancel your question, please push the raise hand button once again to cancel your question. When you're designated, we'll be calling out your name and your affiliation. We'll ask you to unmute your microphone. Please unmute your microphone and please join the conference system. Also, until we complete the response to your question, we ask the questioners to please remain unmuted. Let us now go on to the Q&A session. Thank you. We'd like to take a question from the first person. Nomura Securities, Mr. Masuno, if you'd like to go ahead with the question. Mr. Masuno of Nomura Securities, please. Thank you very much. I would like to ask two questions. I would ask about the operating profit for the first quarter. It seems a bit low, but based on your presentation, you were mentioning that your operating profit performance is in line with the expectation. Can you talk about segments, also regional, global business? These segments are seeing decline in operating profit. I want to confirm this is only because of the anticipatory investment and also because of the continued downward trend in revenue. And also what about Enid? You have seen decline in the sales of electricity business. You mentioned that this is in line with their forecast. Is the performance of offering profit in line with the expectation? That's the point I wish to confirm. Yes, thank you for your question. Yes, let me respond to your first question. What about the new business as well as regional communication segment? As far as these segments are concerned, in the case of floods, the net ads for the flood services has been somewhat slow. That is very clear on a year-on-year basis. But I think as far as this period is concerned, it's a slightly higher target. But yes, I think we have already been prepared for the fact that the revenue will be somewhat softer That indicates it is important that we rigorously control the cost for this fiscal year. So it's important that we reduce cost as we head toward the end of the year so that we'll be able to secure operating profit. So in that regard, I believe the performance is very much in line with our full year expectation. From third quarter and the fourth quarter onwards, we would like to see increase in cost reduction. As far as the global business is concerned, there have been some integration costs in relation to our global business. At the same time, though, the structural transformation costs will be spent to a certain degree. But I believe such costs will be coming down eventually. And toward the second half, we are likely to see the impact, positive impact from the integration process. In the first quarter of the previous year, there were some of the special factors that really boosted our revenue. So that was the situation in the first quarter of the previous year. So, again, the performance in terms of revenue is very much in line with our full expectations. Now, as far as Enet is concerned, our energy business, as you are aware, last year we have seen a significant increase in operating revenues especially in the fourth quarter of the previous year. I believe he has observed that pattern in the previous year. Mr. Massano, as you pointed out, in the fourth quarter, we did procure electricity, and they were sold off in the marketplace. But this fiscal year, we're not anticipating a similar pattern in our electricity business. So as far as our annual plan is concerned, We're prepared for the eventual fall in the fourth quarter, but I think the performance in the first quarter as far as the energy business is concerned is very much in line with the expectation. Okay, thank you for that. I want to go on to the second question. I believe you are getting cash to acquire Green Power, and also yesterday IHA performance was announced. This is a disclosure of the sales of entity-owned IAJ. So can you talk about Green Power and IAJ? Can you talk about your purpose with regard to your involvement in IAJ and also in Green Power? That's my second question. Yes, thank you for your question. With regard to GPI, Green Power investment, we are aiming for carbon neutrality by 2040. we have set that medium-term target for carbon neutrality. So that being the case, it is important that we work toward this, and we have made a great step forward in terms of achieving this carbon neutrality. We're talking about onshore wind power. This is renewable energy, and we believe that this will really entail... This will actually help us to acquire offshore wind power generation capacity in a significant manner. I believe that this represents a very strong progress in terms of achieving carbon neutrality by 2014. When it comes to renewable energy procurement and also through ion, we try to reduce our power consumption, we have these two pillars in mind. And based on these two pillars, we plan to achieve carbon neutrality With regard to procurement of renewable energy, I believe that to a certain degree we've been able to achieve what we wanted as far as procurement is concerned. So I think that we have been very meaningful in relation to green power investment. Now, some people talk about expensive pricing. We are aware of the critical comments about the price that was involved in green power investment. As far as we are concerned, though, when it comes to offshore This is done in the context of FIT or fixed FIT. And while FIT scheme is in place, we believe that this is going to be very profitable for us. So in terms of procuring renewables and in terms of securing profitability, I believe that we have made a very good investment in relation to the Green Power Investment Corporation. Let me now turn to your second question with regard to IIJ. As far as IIJ is concerned? In the beginning of the 2000s, IAJ's infrastructure company, CrossWave, faced difficulties and we invested in IAJ to save this business at that time. At that time, their Internet-related technology. And in terms of the business, they had very strong know-how when it comes to network and when it comes to Internet, rather. And we wanted to leverage their expertise so that we could also expand our own business in the oncoming Internet era. So in terms of R&D and in terms of business, we were able to conduct a great deal of benefits as a result of this investment in IIJ. Now, IIJ's main business was system integration. So therefore, they used FlexNetwork for that business. And also, as far as access, they also used Docomo's assets. And so with regard to expansion of NVNO business, they also utilized services of Docomo. So that indicates IAJ really provided very strong business advantages for NTT. That is a recognition. At the same time, though, when you consider the current competitive landscape, that has really changed a great deal. So as a result, even without the capital relationship, I think we are now in a situation where we can both enjoy increasing business, even without a capital relationship. So that indicates, with regard to capital and shares, we decided to sell off certain amount of stake in IHA, but still maintain strong business relationship. So that indicates we sold off, we reduced the investment in IHA. One more point. So now your stake in IEJ will be on par with KDDI. Are you going to continue to maintain this investment stake going forward? Thank you for the question. As far as this particular transaction is concerned, there are three aspects to this current transaction. First, we sold off on a bilateral basis, and also repurchased some shares. And so we also sold off some shares in the marketplace. So it's a three-pronged approach. I believe that we have a lock-up commitment. So for the time being, we'll continue to hang on to the equity stake in IHA at this level. Okay, thank you very much. That is all for my question. Thank you.

Thank you very much. We'd like to take the next question. Dialogue of Securities. Mr. Ando, please go ahead. Mr. Ando, can you hear me? Yes, we can hear you. Thank you. Apologies for that. I have two questions. The first question, the government is planning to sell your shares. Regarding the idea of the 2020 of Mr. Amadi, Mr. Shimada is a welcoming I mean a welcoming comment is my understanding. If that is so, every year what is sold, let's say that your company through share buyback will absorb that. And if such a scenario does exist, the current share buyback, well, what you have announced today, that pays. If I look at that, I think you'll be full, and buyback from the open market will seem to become extremely difficult, is what I have calculated. So how should we think about this? I'm sorry that this is based on a hypothesis, but can you please share your thoughts or way of thinking? And if you are going to conduct a share buyback from the open market, what kind of initiatives Are you considering, if possible, can you share your thoughts on that as well? Thank you very much for your question. Our President and CEO Shimada, regarding the content from Mr. Ahmadi, commented on it. And today, I did show you the past track record of the share buyback. And if you do look at it, you will know that, let's say, if the government will sell at that pace, we do have the cash flow capacity to fully absorb that. It's probably something that you'll be able to understand by looking at that material. So if you look at that slide material, you'll see that furthermore, it is possible to add slightly more, meaning the capacity of buying from the open market, et cetera. However, if it is necessary to buy back from the open market, whether we're going to have more leverage on or not, there are various ways of looking at this. However, at this point, whether selling it or not or how it will be sold, is something that is going to be discussed moving forward from now. Therefore, given that as the premise of whether we're going to buy from the open market or not and comment on that, at this point, I would like to refrain from commenting. However, having said that, as Mr. Shimada mentioned, We would like to do it in a way as much as possible that it will not be a disadvantage to the shareholder and also think of various things in the best way for the open market as well. Therefore, we would like you to understand this point. That's all. Thank you very much for answering a difficult question. The second question is regarding this first quarter results, this first quarter results It seems that you have ended up slightly lower than the consensus, and the reason is probably because of NDT East and West. They were set at a lower assumption than what the investors were expecting. So my question is, the decline of the profit for NDT East and West, maybe that is due to the increase in cost. Does that have a strong one-time aspect? Therefore, in the second quarter or the second half, it will not be as high as we saw in the first quarter? Or are you going to respond to this situation through further cost reduction initiatives? Can you elaborate on that, please? Well, as you have said yourself, there are multiple aspects to this. Depending on the item of the expense, there are some that will be coming out more in the second half. And from that perspective, the cost restructuring effects are more towards the second half, as you pointed out. And this revenue trend, is as what we have expected. So towards the second half, changing the structure of the cost is something that we're going to think more, we're thinking from the start of the fiscal year, and we are working on it. Therefore, the third quarter and also in the fourth quarter, as the cost is reduced and the profit will be secured, is the plan. Therefore, if you look at each quarter, and if you compare the profit by each quarter compared to the previous year for NDT East and West. There is more profit weighted on the fourth quarter. That is a fact. That is all. Thank you. Thank you very much.

Thank you very much. We'd like to go on to the next question. SMBC Nikko Securities. Mr. Kikuchi, the floor is yours. Mr. Kikuchi of SMBC Nikko Securities. Please go ahead. Thank you. I'd like to ask a question about your performance. especially about profit and pre-tax profit. The sales of IAG shares, the proceeds from the sales of IAG shares is that reflected, factored in your performance. And so when we look at the financial expense, we heard the presentation of entity data performance yesterday, understand that interest expenses increased by 10 billion yen So that's probably one factor. Do you believe that this is sustainable entity data this time around? EPS and the profits was negatively affected due to the reorganization of global business that took place in the previous year. So I think entity data shareholders are very upset with entity holding company. Do you feel a sense of responsibility toward the performance of NTT data? Now, there could also be potential upside risk, but are you prepared to use NTT Finance to offer some help to NTT data? I want to ask about your financial expense. That's my first question. Okay, thank you. You mentioned that, please don't say that you cannot, You cannot forgive or accept NTT Company. We'll do our best. With regard to financial expense, as you pointed out, yes, there was the proceeds from the sales of IG shares, and that is factored in. So that has had a very positive impact. That is true. That's the biggest factor. That is true. Also, with regard to the second point about the interest payment, as you pointed out, as far as the interest payment is concerned, yes, It is increasing. So the situation is exactly as explained by entity data financial presentation yesterday. I did listen to their presentation yesterday. I think you want to ask within the world to take some measures to support entity data. As far as we're concerned, to the extent possible, we want to respond so that we'll be able to minimize the payment. Yes, they were off to a slow start, this is clear. And I know that Mr. Kikuchi, you really dislike us, but I want to assure you that we would like to take various measures to accommodate this situation. And as you pointed out, well, in your question, for example, with the possibility of a care trade, look at some measures so that we'll be able to save dollar principal. Naturally, we will have to take various measures to support this situation. Now, as far as the theory is concerned, the risk pertaining to foreign exchange translation will be generated. But in reality, though, when it comes to the loss from currency translation, it will come out that the actual financial payment. So we'll be... I believe that we'll be able... If the level is such that we'll be able to manage the loss from the currency translation can be managed internally, then I believe we'll be able to manage this situation. So that being the case, We want to make sure that in very practical terms, we will be able to increase our cash flow. So we will have to work on that. We intend to do that. And having said all this, with regard to the new one, new transactions, yes, we will be able to accommodate this. But with regard to dollar-based funding and also foreign currency funding, If we can wind it over low cost, then I think that could be done. But for those costly ones, I think we have to wait until maturity and then refinance. So we need to be mindful of various considerations as far as we're concerned and to make sure that we are very profitable in practical terms and take appropriate measures. So I would appreciate your understanding on our position. Yes, thank you for the response. I really appreciate your response. Let me go on to my second question about the share buyback. This is related to Mr. Ando's question as well. So for this fiscal year, well, last year, the government did not reflect this in their budget. So can I take it that you're going to be repurchasing shares of this in the marketplace and not from the government? If, hypothetically, suddenly the government decides to sell off government-owned entity shares during fiscal year, we consider the possibility of responding to the share buyback. So anyway, the $200 billion share buyback that you announced this time around, this is going to take place primarily from the market, from the open market. Yes, $200 billion for this fiscal year, yes, we intend to do this through the general market. And for anything beyond that, if anything should emerge, we'll give consideration when these issues arise as they come. Thank you very much.

Thank you very much. We'd like to take the next question. Mitsubishi UFJ Morgan Stanley Securities, Tanaka-san. Mr. Tanaka, please go ahead. Mr. Tanaka, can you please unmute and speak? Mr. Tanaka, can you please unmute once again and speak? Apologies, it seems that we cannot hear your voice. So Mr. Tanaka, we would like to take your questions later on, so we seek your understanding. So we'd like to move on to the next question. City Group of Securities, Mr. Tsuduo, please go ahead. Mr. Tsuruo, can you please unmute and speak? I did unmute. Oh, we can hear you now. This is Tsuruo from Citi. My understanding is I only can ask up to two questions, if that is so. The first question is, apologies that it's a very detailed question, but this is an important question and I believe excuse me, all the important questions were previously asked. The electricity cost increase and the infrastructure cost increase. What was the impact of that in the first quarter? Because the previous fiscal year, there were a frequent explanation regarding those costs, so I would like to know about it this time. And then the next question is that cost reduction, it seems that it is not progressing that much in the first quarter looking at the Excel sheet. So how is this cost reduction initiative going to increase? If you can share that with us, I would really appreciate that. Thank you very much for your question. For now, The cost increased due to the market environment or the impact from the inflation of the market up to now. What is the most prominent that we see is the electricity cost. And for now, regarding the electricity cost, when we compare quarter by quarter, last year it was increasing. But this year, compared to last year's track record, it is 10% higher. And the other costs or general costs, there is some inflation impact. There are on the increasing trajectory. However, it is not at a degree that it is reflecting in the numbers due to the inflation, meaning that Our understanding is that there's not a large impact from the other increases. And what was your second question? And the second question is we're going to Excel sheet a medium-term financial target cost reduction item. Excel, when you say Excel, what do you mean? Supplementary material. Sorry, it's a very detailed question. Regarding the cost reductions for us today, as I have been explaining, for the cost reduction itself that we have been building up for the medium term, it is steadily progressing. And regarding this effort, you are asking why is there a lower Well, in the past medium-term management strategy, the cost reduction included in that is steadily progressing. In addition to that, improving the efficiencies of the various things and the advanced type of an expense that is occurring in the first quarter that will further reduce our costs in the future is seen, and in addition to that, Other cost reduction initiatives will be conducted towards the second half and as a result of these activities and initiatives, we will be able to achieve the cost reductions that we are targeting at. Of course, regarding the second quarter, third quarter, fourth quarter, we have not expressed that in specific terms. what will actually happen, but we believe that we will be surely able to achieve the cost reductions. Thank you very much. The second question is regarding the data centers. NTT data may be the main body of this, so you can answer within the scope that you understand. The data center business balancing is discussed. What kind of initiatives are you thinking about this? And also, last year, the Hong Kong operations, data center operation, the majority will be held by NTT data. I heard that you actually transferred that asset, so can you explain about the background of this deal as well? First of all, regarding the data centers, I would like to answer from the latter questions you had. Regarding the data centers in Hong Kong, originally, was transferred over to Data Inc. temporarily. But this time, the data center responsibilities were transferred to NTT Communications. And that is why, within the data center's business results, that impact of that transfer is reflected. The revenue growth of the data center seems to be stagnant slightly because of that. However, incorporating the negative impact, it is slightly flat in terms of the revenue. So that is the situation. And also, this is the head of finance and accounting, Nakamura. So if you look into the supplementary material, sorry that it is very detailed, the global a solutions business segment is aware what you have pointed out is incorporated, but at the bottom there is a note. At the data center, a transfer impact for this quarter is $6.3 billion. And that last first quarter, it was belonging to global solutions business segment, and this time it's in the entity communications. So if you can explain it that way. And the structure, Tsuro-san, you asked about the structure, so what was in your mind when you asked that question? So the sales based on the negotiations, through that, are you planning to off-balance the data center assets? Because I believe there are various ways that you can off-balance that asset, so that's why I'm asking this question. Well, basically, at this point, we're not limiting the methods of off-balancing. And we would like to select the structure that is most advantageous to us. But right now, we would like to do it in the bilateral way. And of course, if there are other structures that are advantageous to us, of course, we would like to select that as well. However, at this point, in the times when the interest rate is increasing, well, as you know, With the funds that are operating with the third-party capital, their appetites are weakening slightly. Therefore, where we will sell the assets is probably more to the operators than the financial institutions. I think as a buyer, they are more promising is what we are thinking at this point. Thank you very much. Just one more follow-up question regarding your answer to NTT Communications. the Hong Kong data center was transferred. So what was the background of that? I do understand the money amount impact, but what was the background of that situation? My name is Hattori. I'm from the head of a corporate strategy and planning. The background of the transfer is that for the restructuring and reform of NTT Limited, there were some licensing issues. So legally, So from NTT Communications to NTT Limited, it was not completely transferred. That was the last year's situation. And within that environment, instead of transferring it legally as ownership to NTT Communications, we thought that it's better to have a different structure and transfer over there in order to continue the data center business in a better way. brought under the NTT communications, meaning the Hong Kong data center and also the Chinese ones. So when we visited, and after that we examined the situation, so the Hong Kong ones are moved into the ICT business segment. I understood it very well. Thank you very much.

Thank you. Next question. Let's go back to... Mr. Tanaka of Mitsubishi UFJ Securities, Mitsubishi UFJ Morgan Stanley. Mr. Tanaka, we were not able to hear your voice. Are you connected? Tanaka-san, Mr. Tanaka of Mitsubishi UFJ Morgan Stanley. I'm afraid we're still not able to hear your voice. You have unmuted your microphone. You're still not able to come through, I'm afraid. Our apologies, Mr. Tanaka. We were not able to hear you. We'd like to go on to another person, and hopefully our office will be able to get in touch with you and get your question. So let us go on to the next person. Mr. Okamura of Okasan Securities, please go ahead with your question. Thank you. Okamura from Okasan Securities. Can you hear me? Yes, we hear you, Okamura-san. Thank you very much. I just have one question. It's about NTT Limited. I'd like to ask about the profitability, DC data centers and the current sales. Based on your presentation, it seems that the data center is concerned there's an impact for the transfer of the business. So we expected more deeper decline in the operating profit in the first quarter. I think that was your projection as well. But how do you assess the first quarter results despite the currency? Did NTT Limited do better than you expected? Can you talk about how you see the performance for NTT Limited in the first quarter? And also with regard to NTT Limited's equipment sales. I think there was an order backlog related into semiconductors, so your plan was to see positive increase, but then in actuality the operating profit declined despite your projection. Can you talk about the backdrop as to why there was a fall or decline in the operating profit? Okay, thank you. Hiroya again, I would like to respond to your question. Let me start with regard to the data center as far as the data center itself is concerned. Our plan for this fiscal year for this period is to factor in the impact of the transfer and also impact of the churn. So our plan factors in those elements. But the revenue for data center is very much in line with our expectation. Also, if we convert to Japanese yen, the currency itself was much weaker in relation to the yen than we had initially expected. So yen-based revenue has been pushed up as a result of the currency. So that needs to be taken into account. With regard to the equipment sales revenues at NTD Limited, that was another part of your question. Yes, there was their order backlog, and that would have changed the situation. Yes, there is impact of the semiconductor. There's still lingering impact in terms of the availability of the semiconductors, so the revenue as a result of shortage of semiconductors is still weak as a result of this. Now, with regard to the weaker than expected operating profit, And the thing is, last year we had a very large-scale contract, but that was not the case in the first quarter this fiscal year. There were some unique factors that were unique to the previous year. So I think the one-off factor that was available in the previous year is no longer the case this fiscal year. So thank you very much for the response. Let me ask an additional forecast. The operating profit margin for the operating profit for data center, is that still in the Has that not changed? Yes, thank you for the question. Yes, that is the basis of our plan. Yes, that is true. Okay, thank you very much. That is all from my side. Thank you.

Thank you very much. We are getting close to the ending time, so we would like to make next question the last question. Mitsubishi UFJ Morgan Stanley Securities. Mr. Tanaka, please go ahead. This is Tanaka from Mitsui CFJ Morgan Stanley Securities. Sorry that I have caused you trouble several times. I have two questions regarding the regional communications segment. I just wanted to confirm. This time, where you gave the explanation of the reduction of a profit, the procurement cost went up or the electricity cost went up, Money amount-wise, specifically, how much of an increase was there? This is Koike speaking. I would like to answer. For electricity costs, NDT East and West in total is about $1.4 billion in the first quarter, year on year. And for security initiatives and operation costs, We have the large-scale system update. So temporarily, the change cost for the previous system and by implementing a new system, there were initial costs as well. Therefore, that was several billions of yen as reflected. Okay, understood. There is a $10.8 billion increase in the regional communications of business. Is that normal? Is there some explanation material? It seems that that's a weak explanation. This is Nakamura, head of finance and accounting. What Koike explained right now, in addition to that, call it the idle assets such as the old employee dormitories or the buildings that we have exited, moved out. That is about 2 billion. And last year, there was a temporary revenue that occurred in the other revenues, and that adds up to several billion yen. So if you offset those two numbers, it does make sense now. Okay, understood. Thank you. And next, for the other segment, the explanation of that, where there was a reduction in profit, as you have explained, and electricity sales, I was not able to understand some parts of it. And last year, at fourth quarter, you were expanding, and you thought about that. And the first quarter was what you explained becoming the major reason for the reduction of the profit. Can you elaborate on that point? Well, and it's the factor for reduction of profit. Well, maybe my previous explanation was a bit misleading. But as I have commented before, the impact for the first quarter, it was a limited impact. So in the full-year plan, that cost is going to decline, and we will see that positive effect in the fourth quarter. So I spoke in a full-year structure perspective. And so the NET corporate customer's profit plan From the fourth quarter of last fiscal year, it is dropping. And this time in the first quarter, the customer's sales income is dropping. And we are seeing that on a year-on-year basis. And it is not a large amount. However, that is one of the factors of a decrease in both revenue and profit. I think that's how you can understand it. So if that is so, In the second half, I'm sorry, Mr. Tanaka, can you repeat the words? I understood about the edit, but the other segment, in order to achieve that plan in the second half, the real estate is going to perform strongly, or what is the plan for that? Regarding the real estate, as you have correctly pointed out, the plan operating a profit on a year-on-year basis, what has increased, it will be more heavily, there's a more heavier increase on the second half. So towards the second half, the real estate business increase in profit is going to become one of the major factors to achieve the profit plan for the year. Thank you very much. Thank you very much.

Thank you very much. As time is up, we'd like to conclude the meeting at this juncture. We will go on to the presentation of results by NJD DOCOMO. For those of you who attend the DOCOMO meeting, please remain connected to this system. Thank you once again for participation. If you wish to listen to DOCOMO, please stay on the connection. Thank you very much.