Screen Holdings Co U/Adr

Good afternoon, everybody. Let us start the screen-holding company's full-year financial results explanation for the year ending in March 2025. Let me introduce you to these presenters. So first of all, Toshio Hiroe, Representative Director, President, and CEO. This is Hiroe. Thank you very much for your participation. And this is Yoichi Kondo, Representative Director and CFO. This is Kondo. And in addition to CEO and CFO, we have three officers. First, Masato Goto, Senior Managing Executive Officer.

This is Goto. And Manabu Ishimura, Senior Financial Strategy Officer. This is Ishimura. And Akihiko Miyagawa, Senior Corporate Strategy Officer. I am Miyagawa. Thank you very much. Now, we'd like to have Kundo CFO to give the presentation about the financial results. Now, let me start my presentation on the briefing of the financial results for the year ending in March 2025.

First of all, we achieved the record increase of the sales and profits against the previous year, hitting the record highs for the fourth year in a row. Especially, SBE made a great contribution in leading this growth. And the year-end dividend payment will be raised to 188 per share compared to the January focus of 163 per share. And annual dividend payment will be 308 per share, also record high. And about SBE, there's a client request for the early delivery, so we could see the large increase in sales and profits year on year. Net sales, OB income, and OB margin all hit the record highs, and net sales growth rate outperformed WFE market for two years in a row. And we saw a great improvement in our market share for the single wafer cleaning equipment. And with FT, we saw the great improvement in the performance. And balance sheet, the equity ratio improved to 62.7%, and credit rating was raised to A-plus by JCR.

And let me go to the next page. And these are the figures.

So the net sales was 625.2 billion yen, and operating income was 135.6 billion yen, with OP immersion of 21.7%. And ordinary income was 138.2 billion yen, and net income was 99.4 billion yen. And against the same time of the previous year, the net sales increased by 120.3 billion yen. Of the income, 41.5 billion yen. Ordinary income increased by 43.9 billion yen. Net income increased by 28.8 billion yen over the previous year. And these are the graphics for your reference.

So on the right side, you can find our ROP now hit 25.1%. And this is a composition of group sales by the region.

So Japan, 14%, Taiwan, 18%, China, 42%, South Korea, 5%, and other countries, 4%. And North America, 10%. So there's an increase in Taiwan and China with decrease in North America.

And this is a sales by segment.

So PE 2.3%, FTE 5.7%, and GA 8.5%, and SPE 83.1%.

And this is the consolidated earnings by segment.

First of all, in the first quarter, The sales for SPE was 135.5 billion yen, and operating income was 36 billion yen, OB margin 26.6%. GA net sales 13.9 billion yen, OB income 1 billion yen, OB margin 7.2%. FT net sales 11 billion yen, OB income 1.6 billion yen, OB margin 15.4%. And PE net sales 4.5 billion yen, OB income 0.5 billion yen, OB margin 11%. And for the full year, SBE net sales was 519.5 billion yen, OB income 136.9 billion yen, OB immersion 26.4%. And GA net sales, 53 billion yen of net sales, OB income 4.2 billion yen, OB immersion 8.1%. FTE net sales was 35.8 billion yen of sales, OP income 3 billion yen, OP immersion 8.5%. NPE net sales 14.1 billion yen, OP income 1 billion yen, OP immersion 7.5%. And this is the comparison QOQ and year on year. So SBEQ on Q with the decrease of sales and profit. And there was a difference of the $19.3 billion or $5.8 billion because of the short performance in the third quarter. So this is not a bad figure for the fourth quarter. And there's an increase in the earnings. sales to Taiwan and Japan, and GA had the increase of the sales by 200 million yen, and the profit decreased. And mainly in the United States, economic business was strong, but the Fixed cost increase had an impact on the profit. And FT, increase in sales and profit, and sales increased by 700 million yen, and profit increased by 400 million yen. Both the OLED and LCD performed well, and variable cost reduced. And PE, increase in sales and profit, sales increased by the 1.9 billion yen and profit increased by the 600 million yen. So both sales and the profits increased, sales recovered both in outside Japan, mainly for the direct patterning. And on the right side, SBE achieved the increase of the sales and the profit, so 100 to 1.8 billion of increase in the sales and 39.9 billion yen of increase in the profit. And sales to the leading applications in Taiwan and materials in China, that's the growth. And sales to foundry, logic, and memory all increased. Energy A, increase in sales, but the profit flat.

So while the recording business performed well, fixed cost increased. And next is FT, increase in sales and profit.

The $12.5 billion increase in sales and $3.4 billion in increase in profit. So there's a great improvement in the performance of FT. And PE, decrease in sales and profit. So there's a minus $400 million decrease in sales and minus $700 million in profit. And this illustration of the balance sheet, and 671.2 billion yen is a total, and net asset increased to 420.6 billion yen, while the equity ratio improved to 62.7%. and because given this the credit rating uh was improved to a plus by jc of japan credit rating agency as look at the stable and this is about the cash flow and the fourth flow uh the The operating cash flow was 26.8 billion yen. Investment cash flow was minus 4.4 billion yen. And the fully cash flow was 22.4 billion yen. And the financing cash flow was minus 19.7 billion yen. And as you see on the year-on-year, the operating cash flow was 71.2 billion yen. And investment cash flow was minus 21.7 billion yen. And the fully cash flow was 49.4 billion yen. And the financing cash flow was minus 46.4 billion yen. billion yen. So we have the very smooth progress with the cash flow. This is the analysis of operating income growth. The result of the year ending in March 2024 was 90.1 billion yen. This is the increase of the sales and capacity utilization plus 50.5 billion yen. This is the profitability improvement with 4.5 billion yen. This is the reduction by the fixed cost by 14.5 billion yen. The impact of the exchange rate was 1 billion yen. The result was 135.6 billion yen for the year ending in March 2025. And there is the increase in sales and capitalization is attributable to SBE and FTE, and profitability improves mainly in SBE. An increase in fixed costs is mainly due to the growth investment in SBE, labor costs, depreciation, amortization of expenses, etc. An exchange rate positively impacted GANPE.

Thank you, Mr. Kondo.

So Mr. Hiroe is going to explain the business environment and outlook. Mr. Hiroe, please. So I'm going to talk about the business environment and outlook. First of all, about the business environment. The growth of a semiconductor device market is driven by the deep learning inference accelerators for servers, which is quite steady. And as for the manufacturing equipment, the leading-edge investment is continuing, and also the mature node investment in China is also steady. So investment is continuing. Talking about GA, centering the Europe and the U.S., The business environment centered around the POD remains sound. Regarding business, it's also showing steady progress. And talking about FT, investment in OLED as well as LCD remains steady. We would like to aim for increasing both sales and profit. About the PE, the one advanced packaging remains strong. But the market environment for printed target walls remains challenging. There is a delay in the investment decision by customers, and full recovery is expected from the second half and onward. As for the business outlook, the March FY26 full-year forecast, we aim to maintain high levels of workforce and profits, but there is an impact of U.S. tariffs, so we have conservative numbers factoring in that impact. And the second year of the midterm management plan, this fiscal year, we consider them as a phase of preparation for the further growth. And we are going to steadily implement growth investment as we have explained. And we aim to achieve our goals over the cumulative three-year period. This fiscal year, which is started, the annual dividend is projected to be 280 yen per share. And SPE business overview is going to be explained. Talking about WFE, in current year 2024, landed upward. And then we didn't expect that, but it was actually landed at $110 billion. So there was a rush demand. So calendar year 2025, we assume the same level. And calendar year 2026, The funder growth is expected at this point in time. And the investment transfer application, as for Foundry, the cutting-edge applications are leading the WFV growth. The investment focused in Asia, but is expected to expand into North America. As for logic, the clients are carefully revising their investment plans. As for memory, the HBM for AI, the investment momentum is continuing. None is expected to see the same level. as the previous year and the image devices the investment is expected to resume later in cy 2025 power device remains sluggish and the recovery is expected to be delayed to the current year 2026 onward and then we added the advanced packaging this fiscal year and the development has started at the panel level in addition to the waveform level And talking about the China market, the investment continues steadily to build its own supply chain for semiconductor. And the last point, competitive environment. The market share has significantly improved, briefly mentioned. The details will be given later. We face or accommodate the customers' needs sincerely, and we would like to market our solutions in non-FEOL areas as well, including advanced packaging. And this is the consolidated trend by application. By application, the queue-on-queue, the source-to-fundry is increasing further. In year-on-year, the source-to-fundry and logic increased in ratio. And as for post-sales, the sales increased steadily. That's in January, 126.62 billion, and they actually ended at 135.5 billion, therefore a little upward. And then some of the customers wanted to have advanced delivery, so that was posted as a March sales.

Next is by destination.

It's the same thing, but in January, the ratio over China was expected to be 33%, but it landed at 38%. As I explained earlier, the China project is increasing. This is the result. And by destination, Q4, Q1, Q, the source to Taiwan and Japan has increased significantly in ratio. The ratio of source to China hasn't decreased. And the full year and the year-on-year sales to Taiwan has grown significantly in ratio, and the race sales to China grew farther from the previous year. And the full year at the far right, January, the forecast was the 510, but actually landed at the 519. So that gave an impact overall. And this one, the first half estimator, the 243.5 billion yen. By application, the first half results and then the first half estimator compare the foundry ratio decrease, but the DRAM portion is expected to increase. And if you compare the second half results and the first half forecast, the same things can be said. As for the foundry, the advanced investment is quite robust. And also the investment in foundry in China is also emerging. As for the DRAM, the HBM leading edge related and the China related investment gave a positive impact. is giving that positive impact when we look at the fiscal year. And next, about the buy destination. The first half results and the first half forecast are compared. It is expected to increase in Taiwan and Korea. And the second half results and the first half estimate are compared. The big increase in the sales to Taiwan. The sales to China is expected to land in 44%. So the first half and the second half, which are ended, almost the same percentage in China. And the second half is we expect this percentage to decline a little bit. GA, centering the ink, the recurring business sales remains stable. We aim to improve the rating margin through the launch of new products. The new products release was delayed a little bit, but in June, we expect the launch in June, and we are working on the development, and we expect the contribution by this launch. And as for GA, the tariff in the U.S., the 10% tariff is imposed. And so regarding business, especially in Inc., same tariff will be imposed. And so that impact is factored in the forensic forecast. As for the FT, the sales have recovered due to the recovery of the displayed market. And going forward, OLED is expected to take a center stage, but there is still a solid demand for LCDs in China for TV. The subsidy is given as their Chinese policy. So because of that, the demand is aroused, and therefore the investment for increased production, we can see this impact.

So in the previous year, we achieved the surplus for the first time in three years, and we need to further increase our profit in this year. Next is about PE. So as was mentioned by Mr. Kondo, the PE is a little bit struggling. In general, the investment is packaging a little bit weak right now. So at the end of the calendar year 2025, we can expect to increase the recovery of the investment. And order intake at the post sales has been at a high ratio. So we have to place expectation on it and wait for the recovery.

And next page is about the business forecast.

So about the first half, the sales is 299.5 billion yen and operating income 54.5 billion yen. The OP margin 18.2%. These are the targets. and for the second half net sales 321.5 billion yen and operating uh op income 16.5 billion yen op version 19.4 percent our targets so for the full year our net sales target is 621 billion yen op income 117 billion yen and op immersion 18.8 percent are the full year targets and uh 88.0 billion yen is a net income expected, which means they are decreasing the profit, but we have to find a way to improve it further. And about SPE, in the first half, the target is 240.5 billion yen. OP income 57.5 billion yen, OP margin 23.9% as expected. And for the second half, net sales 261.5 billion yen as expected, OP income 63.5 billion yen with OP margin of 24.3%. And for the full year, 502 billion yen of sales expected with 121 billion yen of OP income and 24.1% of OP immersion are planned. And GA, so the other businesses, let me introduce you the one for the full year with net sales of 53 billion yen, OP income 2.5 billion yen and 4.7% OP immersion. And FT, net sales, 45.5 billion yen, is OP income 5 billion yen, 11% OP margin. And PE, 15 billion yen of net sales with OP income of 1 billion yen, with 6.7% OP margin. And others, expected net sales of 5.5 billion yen. and OP income with a loss of 12.5 billion because of the investment into the research and development. And I think SPE is a business you are paying attention to. So let me elaborate on SPE. So in SPE, we have to make the greater investment into the research and development. So including the labor cost, the fixed cost of SPE will be larger from now. And product mix. Compared to the previous year, product mix is a little bit weaker, especially with China. The ratio of the new customers will decrease. That is a feature we now expect that is not in the exacerbation of the product mix. And about GA, we expect the impact on tariff. And FT may also have the impact on tariff. So we expect a slight impact from the coming tariff. And next is about the R&D expenses, capex, and depreciation. So in the previous year, we can find the trend, which was explained by Kondo a moment ago. So the capex exceeded the generally forecast, but as for the R&D expense, we were short of the budget. And this will be shifted into the project in this fiscal year. So in this fiscal year, we have a $38 billion of the other expenses and $28 billion of capital expenditure and $15 billion of depreciation and amortization. So we'll execute our investment as planned so that we can achieve the next phase of growth.

And this page is for your reference. Next page, please.

And this is the waterfall chart, which shows the analysis of operating income growth. So 135.6 billion in the results of year ending in March 2025. We have the increase of 8 billion yen in sales and capacity utilization, which is mainly led by FT, GA, and PE. And the profitability is minus 2 billion yen. And FTGA and PE have the positive performance, but because of the product mix I mentioned earlier, the SPE is on the negative side.

And the fixed cost

Coming from the research and energy expenses, labor costs, and investment into the future growth, and also the increase of depreciation, so we expect minus 19.5 billion yen. And mostly coming from the SBE business. And impact of the exchange rate is minus 5.5 billion yen.

And SBE and GA share this impact from exchange rate. So the total is 117 billion yen.

And exchange rate is 135 yen for dollar and 150 yen per dollar per euro. And the sensitivity hasn't changed from the previous year.

And next page about the annual dividend output.

So as was mentioned by Mr. Kondo a moment ago, for the year ending in March 2025, at the end of the year, we're going to make 188 yen of the year end dividend payment, which will make the annual dividend to 380 yen record high share. And the focus for the year ending in March 2026 Interim dividend payment will be 123 yen. And year-end dividend will be 157 yen. So annual dividend will be 280 yen. And we will achieve the payout ratio of 30% or above as our target. And these figures support this target. And total payout ratio is expression we have used so far.

And as you know, since the previous fiscal year,

We made the $40 billion share buyback, which was complete in April. And $18.9 billion of the share buyback was complete in the previous year.

The total shareholder return ratio is 48.9%.

And next page, this is already announced.

On June 20th, we have the 84th Annual General Meeting of Shelf Voters. And this has to be approved on that occasion, but we'll have the change of representative directors in this way. And I myself will have the new title of representative director, member of the board chairman. And today, we have Goto in this meeting, and he will be the representative director, member of the board, president, and chief executive officer, who is now the senior managing executive officer. And Mr. Kondo will serve as a member of the board, executive vice president, and chief financial officer. So, I myself and Mr. Kondo will support Goto-san.

Mr. Kondo.

And we have receiving the support from Mr. Kakeuchi, the chairman, and Mr. Kakeuchi will remain as executive advisor for us. So he will be active in the field of economic circle. And so the value of 2030, the mutual management fund period, By introducing the ROIC system, we could see the improvement in the business management so that we now have the power or capability to generate cash. And the current period of inter-management plan, the priority is to where we make the investment from now. So we'll continue to make the strategic investment so that we can be prepared for the next level of growth. And at this timing, we will succeed the business to the new generation of management. And I think this is a very appropriate step for us. That's why we decided in this way. And in the coming Metro Management Plan, which follows at 2026, we are now at the timing to come up with the next Metro Management Plan. And we'll ask Mr. Goto to take initiative in coming up with the next Metro Management Plan. So, Mr. Goto, do you have any comment at this moment?

And I am Goto.

So together with Mr. Hiroe and Mr. Kondo, we will be involved in the management of the business of Screen Group, and I ask for your kind and continuous support.

So thank you very much.

Okay, now I would like to talk about the progress of the body of FIDA 2026. I already explained about the financial results, so today I would like to focus on LOIC, and then the first-year result was 24.7% of LOIC, and the second-year forecast is 19.6%. However, we would like to increase FIDA.

The topics are touched.

Among the topics, what I would like to introduce is the acquisition of the land in I hope you will be aware of that. And then the semiconductor manufacturing equipment production site will be produced overseas. And we have decided the direction of investment. And by doing such investment steadily for the next investment, we would like to work for the product growth. And Appendix is attached. The major equipment global share, you can find Appendix. And the gardener that released the number, the single wafer cleaning equipment, we have a 42% market share, and batch type cleaning equipment, 46%, and spin scrubber, 45%. Our market share has increased 92 to the leading edge foundry or the mature node foundry. The POR was acquired. has been gradually increased because of a passive pass on our prices and as for the new topic advanced package area cleaning application has been widened and that is contributing to the certain amount of sales and due to these factors our market share is growing and so continuously we would like to increase our market share So that's all from me. And I myself, this is my last presentation in the briefing for financial results. Thank you very much for your kind cooperation. And Mr. Goto will succeed me. And thank you for your continued support and cooperation. Thank you very much. Mr. Hiroe. So moving to the Q&A, Morgan Stanley, FJ, Iwataki-san, please.

Thank you.

For the forecast and the plan, in comparison to the tower, they look a bit smaller, but that's for the second half. How much can you foresee, I mean, forecast? I had an interview. You have a full capacity in the plant. And as for the second half, how much you can forecast including the utilization of your capacity at the plant? Hiroe is going to answer your questions. And then the That's for the forecast for the second half. As for the first half, we have come in sight. And as for the second half, the third quarter, half of the third quarter has come in sight in our impression. From the year end to the following year, the project is still uncertain. So due to the tax, impact taken into consideration we have announced the forecast in a conservative way first quarter the at the end of the first quarter we can see the second half clearly at the end of the first quarter we would like to share the information with you Okay, understood. And the second question, generally speaking, the transaction with the companies in the entity list, how do you consider that? Are you not going to have a transaction with them, or along with the regulations, are you going to continue yourselves? the the minister we follow the guidelines of the ministry of economy trade and industry and we operate our business and uh and the entity risk related companies uh the um The U.S. major needs to be used at 25% or higher, so it's not covering our business. So we follow the regulations of the Japanese government. Okay, understood. Thank you very much.

Thank you very much, Mr. Awadaki. Now, Mr. Shimamoto from Okasan Securities. This is Shimamoto from Okasan Securities. Can you hear me? Yes.

Thank you for this opportunity. I have a question about how to read the WFE business. So in a quantitative way, in a more specific way. So would you elaborate on the foundry and Chinese market situation? So how do you see the coming year about these businesses? About WFE? we had a kind of last minute demand increase at the end of the year. So for this year, we have the focus a little bit smaller. So we expect the level will be same as that of the previous year for this year, which is mainly led by the foundry. The investment into the leading edge has been continuing, and also in Asian region, including China, the investment will be made. That's how we see the situation. And unfortunately, logic seems to be a little bit weaker. In memory, the investment reading to HBM is now very sound, especially DRAM HBM related investment is now very active. And NAND is same level as that of the previous year. And for the image device, from the end of the fiscal year, we expect recovery in investment. Then we can expect a certain level of sales and profit.

And the power device is a little bit weak. Thank you for your answer. Another question is about China.

So do you see the situation in China positive or negative? In the first half in China, we came up with a forecast. So to be at the 40% comparable to that of the previous year. And toward the second half, this will be, this will decline to about a 30%.

That's the highest situation now. Thank you very much. So the total of China will be negative from now.

Yes. Thank you for your answer. I have another question. So impact of tariff. So you mentioned that you already incorporated the impact of tariff. And if you can elaborate on how much impact you actually involved. And I think GA has a direct impact, but as for the production equipment, how did you incorporate the impact of tariff in your forecast? Would you explain on this point? So the impact of tariff on GA, now we have the baseline 10% tariff. That's what I mentioned earlier. And with this figure, the tariff impact is incorporated. So billions of yen of impact is expected. And for SPE, not much impact is incorporated.

At present,

how the tariff will be imposed on the semiconductor is now being studied as a separate box.

That is the current situation we acknowledge. So there's a tariff on aluminum spare parts. And how... So the...

is relevant to the, we have to calculate the amount or weight of aluminum contained in a component on a part to come up with the exact impact of that type. So we are now working on that very difficult analysis, and I think we can find more details in April or May. And when the things get more clear, we'd like to share that information with you. Thank you very much. That's all for me.

Thank you, Mr. Shimamoto. Next, Mr. Nakamura, please. Thank you very much. Thank you very much, Mr. Hiroe, for your great support.

The first point, the impact of a tariff, the new fiscal year, the forecast, the factoring in situation was explained. But at the moment, from your customers' forecast or the investment plan from your customers, after the tariff topic came up, is there any change or the inquiries or the order received changed? At the moment, GASBE no impact has been seen. After this time, the Based on the assumed impact, we may ask the customers, then some kind of impact may be given. But for the time being, no outstanding impact is seen. So at the moment, the advanced order demand is not occurring? Yes. As I explained, the Chinese customers a little bit requested to make an advanced delivery in the year which it was ended. But other than that, it's steady. And the second question, considering the profit of the SBE in the new year, the OP margin is going to decline, and the product mix and the R&D and the labor cost increase were explained. And in comparison to the previous year, the 2.3% point seems to decline. this fiscal year, but the gross margin and the SCNA and, you know, what would be the breakdown? And the SCNA seems to be increasing in your plan. Would you explain or elaborate on that? Exactly, you mentioned the impact is product mix. Product mix impact is bigger. The R&D cost increase is factored in to some extent, so there is some impact for R&D. Ishimura-san, do you have any additional comments? Miyagawa is going to ask for the fixed cost. Looking ahead, the labor costs increase by increasing the personals, and then R&D expenses are going to be increased, and they are reflected. Okay, understood. So the cost of sales also increase about the 1% point, and the... and A also increased by one percentage point.

Yes, that's right. Thank you. Thank you very much. Next, Mr. Yoshida from CLSA Securities, please.

Thank you very much. This is Yoshida. And Mr. Hiroe, thank you very much for your great work so far and I expect your continuous great work.

And my question is about WFE. A moment ago, you made a comment by application, especially about foundry.

You said that situation is sound. Do you expect the positive growth from now? So when the foundry, DRAM, achieve growth, And logic may be negative growth, but power device negatives. But in general, I think rather than flat, the performance of the SPE will be stronger. So when you see the total situation, how do you see the 2025? in your comment you expect a further growth into the fi 26 but toward 26 do you expect any change in any application so the foundry we expect the positive growth but to the mature node in china in the second half may decrease that's how we expect And this part will have the negative impact of setting the situation. So that's why we expect the growth will be flat from 24. And in 26, we expect a further growth because we have the investment into the overseas halves, and we can expect a contribution from these overseas halves into which we are now making investment right now. So with Foundry, Asian manufacturers overseas deployment will make the contribution into the 2026. That's how you expect the growth. Yes, including in the United States, we can expect the situation moving that way. And my second question, you said that you have certain level of visibility for the first half. And But compared to the fourth quarter of the previous year with SPE, what kind of direction you now find? And compared to three months ago, how do you evaluate the current level of demand or order intake?

Do you see any change in the trend? So environment for the order intake

compared to the fourth quarter in the previous year, where the order level was a little bit lower, smaller. But on the timing of the fourth quarter, the customers did not place the orders with us because of their own reasons. And we have a report that in the first quarter, we are not receiving orders from these customers. So we are not concerned about the situation. So how the order intake will increase in the first quarter will be the kind of indicator for us to make the focus for the order intake for the full year. And the visibility we have about the first quarter or first half, especially about the first quarter, we have the good visibility, but customers sometimes changes the expected delivery date or delivery timing. And that kind of fluctuation should be expected for the quarter. But a little of the order intake is enough for us for the quarter. And I think this situation will continue until the end of the first quarter with enough amount of the order backlog. So compared to the fourth quarter, you do expect the sales trend is same from the fourth quarter. So how do you see the trend? So as you see on the screen right now, compared to the first quarter of the previous year, there's a slight increase. in the coming first half. So in the first half to first half comparison, there is a rise. But as we have been saying, in the second half, because of the several factors, There's a possibility that in the second half, there will be greater sales in the second half. So whether we can achieve the same level of 2,904 billion yen in the second half of this year is now being scrutinized and studied as now. Thank you very much.

Mr. Nakano-myo from Jefferies, please.

Nakano Myo of Jefferies Securities, thank you very much. And I thank you very much for your work so far. And I'm sorry to repeat, but that's for China, the entire market based on the WFE. In the previous quarter, the CUI 25 China is not expected to decline so much. I believe you talked about that. But in 2024, there was an upside. But how do you see the decrease in 2025? In your explanation so far, the immersion is weak, but existing is quite steady. But among the immersion, there are some strong companies. Is there any changes for the past three months? No change has been seen. At the end of the day, according to the WFE, At the end of 2024, there was a portion of increase that the portion will become a negative in 2025 according to my impression. Previously, the first half of China portion is high, but the second half, But at the end of the day, it would be the middle 30% level. This is what I explained. And then it has been progressing as we had expected. So the percentage you mentioned is your company's percentage of your company and the percentage of WFE. We are talking about our company's percentage. And so according to the WFE, Goto-san, do you have any comment? And then according to WFE, as Mr. Hiroi mentioned earlier, there is no significant change. So our prospect or the forecast is almost the same as the forecast of WFE. So the investment of existing players are increasing to see any trend. The existing customers is getting stronger. Yes, that's the trend this fiscal year. I'm talking about this fiscal year. Okay, understood.

Thank you very much. Thank you. Thank you very much, Mr. Nakano-myo. Next is Mr. Yoshio from the Nomura Securities.

I have two questions. So the first one is about the market of WFE. So I want to confirm in that sense. So is there any possibility of the downward division about WFE or you haven't made any downward division? And compared to three months ago, are there any changes taking place by application? So if there are any application with greater change, please advise them. So compared to three months ago, as has been commented by Goto-san a moment ago, in market, we haven't changed our view. So simply put, the one that's slided into this fiscal year is now analyzed how they would have an impact on the performance. So what is strongly performing is the Generative AI Deleted Leading Edge, or HBM. we have the impression they are performing very strongly. And as I touched upon, the cleaning in the advanced packaging area is growing, and this is the area we place expectation on. Thank you very much. And a follow-up question about the advanced packaging. So are there any factors behind the shop?

And you're The ratio in your sales, what scale of business?

So how much growth did you see with advanced packaging? And compared to the others, you have the high share. Can we see in that way?

Thank you for your question.

Advanced package cleaning is now applied by the customers who are working on the development of the leading edge applications. So we have inquiries from them and develop various products. So this is a background of the growth. And volume-wise, it is not so big to talk about. It's millions of yen of scale. Thank you very much. And my second question, please briefly comment on the forecast between the first and the second half. And your visibility about the second half is not so clear at this moment, but when you make the comparison between the first and the second half, this is about SBE, so I think you expect the growth of the sales. So you elaborate by application. So which cells, which application cells do you expect to increase into the second half?

So the foundry will read the growth.

There's no change in that. And memory-related stiffness will get stronger in the second half.

So D1 may be a strong.

Miura-san, do you have any comment or flash? So flash may increase in the second half.

Thank you very much. I understand. Thank you, Ms. Nagashima-san.

And since there is no person to ask questions, and so with this, we would like to conclude the 2025 Consolidated Business Results and Forecast briefing. Thank you very much for joining today.