Screen Holdings Co U/Adr

Good afternoon, everyone. Now, we'd like to start the earnings call by screen holdings for the first quarter of fiscal year ending in March 2026. Now, let me introduce you the presenters for today. First of all, Masato Goto, Representative Director, Member of the Board, President, Chief Executive Officer. Yoichi Kondo, Director, Member of the Board, Executive Vice President, Chief Financial Officer. And along with CEO and CFO, we have three officers attending this meeting. Manabu Ishimura, Managing Executive Officer. Akihiko Miyagawa, Senior Executive Officer. And Shihou Otobe, Executive Officer. Let me invite Vice President Kondo to give you the presentation on the outline of the consolidated results and the forecast. Now, Mr. Kondo, microphone is yours. Now, let me give you the outline of the consolidated results for the first quarter for the year ending in March 2026. So we had the increase of the sales and decrease of the profit. And that sales was 135.7 billion yen, that is plus 1.2% QOQ. And operating income was 24.3 billion yen, minus 12.2%. And OP immersion was 18%, that is minus 2.7 point QOQ. But they are within our expectations. And as for the SPE, we had the sales and profits both fell year on year, but this is within our expected range. And FT, we saw the significant growth in the sales and the profits. We could make a good start, buoyed by the robust FT market. And in the balance sheet, the equity ratio was 64.5% because of the depression of the asset. And next is the consolidated results. The sales was they are 135.7 billion yen. Operating income was 24.3 billion yen. And OP immersion was 18%. And ordinary income was 24.5 billion yen. And net income 16.6 billion yen. And OP income minus 3.3. Ordinary income minus 3.3. Net income minus 1.5 billion yen. And this is the composition of group sales by destination. Japan, 15%. Taiwan, 29%. China, 34%. South Korea, 5%.

Asia and others, 4%. And North America, 9%. Europe, 5%. And this is a composition of group sales by segment.

SPE, as usual. occupies the large portion of 80.7%, GA, 9.5%, FT, 7.4%, PE, 2.3%. And this is the considered earnings by segment. SPE, 109.5 billion yen, OPE income, 25.6 billion yen, and OPE immersion, 23.5%. And as you can find on the right side box, we had the sales and profits both fell. And the foundry and DRAM sales decreased and decreased ratio of sales to China observed. As a result, against the same time of the previous year, there was a decrease of sales by 2.6 billion yen and 3.3 billion yen above the income decrease. And next is GA. The sales 12.9 billion yen and OP income 0.5 billion yen will be merged in 4.4%. So the sales grew while profits declined. Equipment sales rose, but it was offset by the exchange rate impact. And sales achieved 0.5 billion yen of increase and OP income 0.2 billion declined from the same time of the previous year. Next FT, 9.9 billion yen of sales, OP income 1 billion yen and OP immersion 10.5%. Sales and profits both increased, especially equipment sales grew significantly mainly by the OLED. And sales increased by 4.7 billion yen. OP income increased by 1.3 billion yen. We now see the recovery. And next is PE. Net sales 3.7 billion yen. OP income minus sales. So sales and profits both fell. and we expect the recovery of demand for the advanced packaging. So we are struggling with PE. So sales decreased by 0.8 billion yen and OB income decreased by 0.5 billion yen against winter the previous year. And next is the financial standing and this is the balance sheet. So 639 billion yen is a total asset and cash and time deposits largely decreased. And tax payment dividend payment and shareback, those caused the last decrease in cash. And also we could collect the notes accountable, so that decreased and inventory is stable, but we saw slight increase. And on the liabilities net asset, we saw some decline in the disappearing debt. And we had the shrink of the total assets. So now the equity ratio could improve to 64.5%. And this is a cash flow. In the first quarter, operating cash flow remained at 6.9 billion yen despite the recording of net income due to the payment of income taxes and other factors. So it was 6.9 billion in the first quarter. And we had the minus investing cash flow and minus free cash flow of 2.7 billion yen. So we spent 28.9 billion for the financing for the dividend payment and share buyback. And we are not concerned with the current situation. And next is already expenses, capex and depreciation amortization. We don't change the first year expectation. So on the occasion of the last earnings call, as we reported for the full year, we are going to spend $38 billion for the R&D and $28 billion for the capex and $15 billion for depreciation and amortization. And for the first quarter, we spent $8.5 billion for the R&D, $4.4 billion for capex, and $3.4 billion for depreciation and amortization.

And this is analysis of operating income growth. In the first quarter,

Against the previous years, the same time of the previous year of 27.7 billion yen, and those of the contribution by the FTNGA, we could have the increase of 2 billion yen, but profitability mainly attributable to GA and fix the cost because of the gross investment, such as the increase of the human resource. we had the minus 4 billion yen for the fixed cost and also mainly by GA we had the impact negative impact from exchange rates and next is the business focused as this is as we reported so on occasion of the previous onyx call we haven't changed the focus for the full year since then and so that is We are going to have the full year of 621 billion yen of net sales.

OP income of 117 billion. Ordinary income of 117 billion yen.

SPE, we have 102 billion yen and 121.1 billion yen and 24.1%. NGA, 53 billion yen. 2.5 billion yen of OPE income, 4.7% of OPE immersion. FT, 45.5 billion yen, 5 billion OPE income, 11% of OPE immersion. And PE, 15 billion yen. And it sells with OPE income of 1 billion yen, OPE immersion, 6.7%. This is the forecast.

The analysis of operating income growth forecast remains the same. From 135.6, the sales and capacity utilization increase, and plus 8, by FT and GA, and the profitability minus 2 billion, and the fixed cost is minus 19.5 billion, and the R&D will be promoted, and the exchange rates are minus 5.5, and the exchange rates are shown here, and so the negative 5.5 will be estimated The exchange rate remains the same, and we cannot foresee Trump's movement. And then we are going to maintain 135 for USD and 154 for euro. And as for dividend, that remains the same from the initial forecast. The interim dividend, 123. Year-end dividend, 157. Annual dividend will be 280. and that we would like to place the dividend payout ratio of a higher. That's all from me. And Mr. Koto, thank you very much. Now the president, CEO Koto, is going to explain the business environment and also Mr. Koto, please. Koto is going to explain about the business environment and the outlook. The FY26 March three-year outlook summary, SBE, Aiming to maintain the solid internet source by thoroughly capturing opportunities arising from the leading-edge investment in foundries and memories for AI-related applications and as well as mature node foundry demands. As for FT, the panel manufacturers have a very robust investment appetite and overnight to capture those opportunities. And as for focusing on building presence in advance of the packaging, last year we launched the wafer cleaning equipment and the PLP called Lamutia. And the Levina direct imaging system for packaging are, you know, with ourselves, so are expected to increase. And as for the focus of the market is quite severe, and that toward the next group, we will implement especially the growth investment to prepare for that week.

And SBE business overview.

WFE, we maintain the May forecast. In the calendar year 2025, The market is expected to match the CY2024 level. As for CY2026, in comparison to CY2025, we expect the growth. No significant growth can be forecast at this point in time, but at least The lower single-digit growth is expected. We are expecting the recovery of the market. And investment trends by application. As for Foundry, the continued investment momentum in leading-edge news, especially for AI-related applications. And as for Logic, at the moment, the clients carefully revisiting their investment plans. And as for the investment, we are going to scrutinize those investments to respond to changes. As for memory, the investment for HVM and the DDR5 remains solid, driven by AI demand. As for non-investments, they are driven mainly by the need for multi-layering. On the other hand, image devices The some of the planned investments have been delayed. So in accordance with the delayed plan that we would like to respond and part of our season others. The weaker investment trends in the industrial and automotive applications on the back of the decline in the investment for automotive, but we expect the recovery from CY26 onward. Advanced packaging area. Investment in leading edge nodes for PLP going to be promoted. And so we are going to strengthen our initiative in this market. As for Chinese market, the existing foundries, customers and clients, they are expected to continue their investment in WWE. SPE, composition of equipment sold by application and post sales.

At the far right bar graph, as you can see, as for Funtree, a little bit of a decline from the previous quarter in terms of our proportion.

But as for the DRAM, quarter to quarter, there is an increase in trend. As for LOZIC and the FLUSH, increased slightly. And as for the logic increase, the attributable source to China and post cells remains stable.

So we are going to secure steadily.

Next, the SBE segment composition of cells by destination.

Quarter to quarter, sales to Taiwan grew slightly.

Year-on-year basis, sales to Taiwan rose significantly, and sales to Japan increased slightly.

This trend is expected to continue going forward.

and next xpe composition of cells by application forecast the by new application and post cells and the first half for forecast as you can see here the logic is struggling However, the DLAM is going to drive significantly. And the Q1 and the Q results and Q2 estimate, and then DLAM is expected to increase significantly. And if we compare the first half and the second half and the logic, existing customers may be struggling, but the uh logic demand by new customers emerging so that the increase is incorporated and sp composition of source by destination forecast the 1q result and a 2 Q2 estimate and Q2, the source to China is expected to increase significantly. In the first half estimate and the second half estimate, in the second half, source to Japan, Asia, Oceania, Korea, and North America are expected to increase. And the previous year results and this fiscal year estimate, This shows to Taiwan, Japan and Asia the market we expect to increase.

As for GA, the recurring business remains stable.

Despite the impact from the US tariff policy, but we aim at improving profitability exceeding the impact. Next, FD sales trends. As I explained earlier, the sales void by the recovery of the FD market. Going forward, OLED is going to be promoted further. Therefore, the OLED investment will be the growth driver. And we returned to profitability in the previous year for the first time in three years. And the Q1, the significant profit improvement has been seen. And so we expect a stable sales and profits going forward.

Next, PE.

Continuously, the market situation is sluggish. The associated with the miniaturization circuit board, a full recovery of investment in packaging is expected from the end of the calendar year 2025 onward, but the post sales remain solid and so centering on post sales of online developer business.

And this is a summary of resolutions regarding treasury shares.

In today's afternoon, we released this information. So we had the cancellation of treasury shares. And common stock of 6,209,746 shares will be cancelled as of August 29th. Also, we have the contribution of additional funds to the performance-linked share compensation system and disposal of treasury stocks. And the total share of the tube acquired is 415,200 shares, and the cost will be 5,102,808,000. And the period of acquisition is August 13th. And this is the page about the ESG initiatives about environment. Based on the TCFD recommendations that we made the annual update and we can find this closed information on the home page. And governance and others.

The information is not updated on that web page, so please find them. And this is the page about the recent screen groups news. So holdings has been work on the new businesses.

And one of them is the MEA systems trial offer. Which is capable of simultaneous measuring and recording data and announce is made in this way.

So please find the information. And other topics. You can also find the information on them in our homepage. Thank you very much for the call.

Now we'd like to go into the Q&A session. So first, let me invite Mr. Yoshida from CLSA Securities.

Please. I'm Yoshida from CLSA.

Can you hear me? Yes, I can hear you. Thank you very much for the opportunity. First of all, I want to know how you think the second quote of SPE, application is the increase and also expect the increase of sales from China, especially the DRAM. So do you think that DRAM in China may lead to sales growth? And when you think the first quarter, the first half, is there any change from the one you explained on the previous occasion. So toward the second quarter, what change do you see? What changes by sales by the applications compared to the one you expected three months ago?

So this is called, don't let me answer your question. So first by application, there's no big change in the trend.

As you know, in the market, the outlook is very uncertain, so the customers have the plans, but the timing of the commencement of the investment is a bit different from what we originally expected, and that may cause some change in the proportion of sales we expected, but the overall situation hasn't changed.

For the second quarter sales, do you expect that to be led by the DRAM in China? Yes, you can understand in that way.

Thank you very much. And my second question is about the WFE in 2026. So you said that you can expect the lower single digit figure. And this growth of the lower single desert, do you explain it by the application and by the destination? So what level of market growth do you expect for the 2026? So do you elaborate on the expectation for 2026? So it is difficult to come up with a detailed expectation for 2026 by application and by destination as of today. But in general, WFE demand compared to 2025, we expect the stronger demand for 2026. This is a result of the various surveys and investigations. So what will grow by how much can be seen In a specific way at the end of this fiscal year, but at this moment it is difficult to talk about the specific details. So I ask for your kind understanding. So you are feeling that they may have the strong demand from now and in what area, what application and what reason to expect? The strong demand coming. So on that point,

As you know, related to AI applications, demand will grow from now, and so we expect the growth of the relevant equipment. I understand. Thank you very much. That's all from me. Thank you, Mr. Yoshida. Goldman Sachs Securities, Mr. Nakamura, please. Thank you very much.

First question, the Q1 sales and profit evaluation and the SPE profit margin, would like you to elaborate on them. And then the first half for the forecast, the progress seems to be slower, but Mr. Kondo explained that it's on par with the assumption. And so we'd like to hear more details. And the SBE from the Q1 to Q2, that is expected to increase, but the SBE South, expected to increase significantly, and the sales to China is going to increase, so the increase should be more, but how do you evaluate?

The Q1 result, as Mr. Kondo mentioned earlier, the slight

source, the replacement contents, but it's the same as we had estimated, and there's some vertical line, but due to the product mix, there's some increase, and so all in all, the Q1 period, the source amount is

on par with our assumption in the full year forecast.

SP is OP margin due to the product mix mainly. But basically, we have taken various initiatives to improve the profitability, and you can see some of the results from our initiatives. By quota, there are some fluctuations, but they're all in order. Our initiatives have been producing results, so generally speaking, profit is on the way of improvement. Thank you very much. I understood. The second question is about the concept of China business. In the first half and the second half, SPE, the composition, sales composition, the second half, the mid-30% is planned. On the other hand, the local semiconductor investment appetite seems to be strong. So in the coming three months, if you have seen any changes, and also would like you to explain the prospect. And the business for China, we have been repeatedly mentioned so far. For the past two years, the sales to China has become high. And this fiscal year's forecast was asked several times. What we answered is that the business proportion to China will become stable. And what is the proportion? We answered that it's mid-30%. And it has come to that level. And at the beginning, business to China, due to the regulation by the U.S., the were somewhat limited. But other than the our expectations of business to China, we're not the targeted by the regulation. So From the current situation, the little decrease, but the continuously the mid to higher 30% level would be the proportion of business to China. One confirmation in the second half, the source to China, how we look at the source to China in comparison with the three months ago, the no big change. Yes, that is correct. Understanding.

Thank you very much. Thank you very much, Mr. Nakamura. Next, let me invite Mr. Shimamoto from Okasan Securities.

Thank you very much for this opportunity. I am Shimamoto from Okasan. And I'd like to have your advice on how to see the AWFE in 2025.

Are there any growth expectations by applications? So OTOBE will follow with the figures. This is OTOBE speaking. In calendar year 2025, by application, we found we expect to plus 10%, logic minus 20%, and memory, when it's the breakdown,

DRAM 10% plus, NAND plus minus 0%. We have both the negative and positive figures. And for the imaging device and the power, minus 5%.

These are the expectations we now have. And how do you see the China market? So the China market, China business in WFE.

Our image is that we may see that slight decrease. So mine is a single visit.

Yes, that's the image we have. And hold up question on that point.

So figures you gave me are almost the same as that of three months ago. So expectation by application hasn't changed since three months ago. Yes, as was explained by Goto a moment ago, we don't see any big change in the trend. So it was May when we had the previous Alex call. So less than three months had passed and there's no big change in the situation or expectation. Thank you. And second question is about the impact of the tariff. There's uncertainty about the appetite by the customers in investment And so do you see any change in the sentiment of the customers in the past three months or about the 2026? Do you think it's better to have the very tough view on it? So I think you have the communications with the semiconductor equipment manufacturers and how do you expect their appetite for the investment? So as long as we see the impact of tariff by Trump administration, doesn't cause any big revision of the investment plan by our customers. And we haven't heard any specific plan of the revision of their plan. Thank you very much, Ainesta. That's all from me.

Thank you, Mr. Shimamoto.

Next, Nomura Securities, Mr. Yoshioka, please. Thank you. I am Yoshioka from Nomura Securities. Can you hear me? Yes. Thank you. Buy application sells buy application. I have a question. This fiscal year, through your forecast, the buy application breakdown has been indicated that non-to-sells, the 26% is expected to remain same year-on-year. As for this industry's other WFE companies, the focus seems to be different. So as the investment in non-application, that you haven't seen the investment or the investment will center on the multi-layering you mentioned and so your cleaning equipment higher the integration that your exposure might be decreasing? Or what is your expectation for this fiscal year sales in NAND? Our expectation of NAND, the customers, the investment and timing has not been well determined because of this uncertainty. The market memory price forecast is also difficult to foresee. In that sense, our clients, the non-memory clients, in which timing they are going to make an investment for NAND, they haven't officially determined the timing in our understanding. So because of that, we explained in this way.

Thank you very much.

so uh the intensity of our cleaning equipment has nothing to do with that i understood thank you the second point the soul spy application once again in gospel foundry the of course i'm not the um mentioning the customer's name but the two nano investment the making the source contribution this fiscal year but including the advanced investment and this fiscal year i believe that that it has posted in sales toward the next fiscal year and then the souls have a more potential to increase next fiscal year. I will explain about the forecast for next fiscal year. Two nano advanced packaging and mass production hasn't started. It's still pilot stage. And so two-nano area will make a contribution to cells. At the moment, two-nano area will not contribute to increase of a volume in cells. Having said that, the mass production for reading aids, the three-nano is quite robust. uh so there will be a contribution from that and also the us uh the device manufacturer for ai and their china business was lifted therefore the market for china will be targeted and the proportion will be increased for that and so the business pool foundry are expected to increase to cover that area.

Thank you very much for your answer. I understood. Thank you very much, Mr. Yoshioka. Let me invite Hirakawa-san from the Bureau of Securities.

My first question is about the profitability. On page 11 and page 13, there's analysis of the profitability. And SPE minus, but the FDGAPE will make a contribution to profitability. And I want to know more about the fluctuation of the SPE's profitability. And related to that, we want to know the profitability of this specific product. There may be some negative figures, but What improvement did you see for this fiscal year in terms of the profitability and in terms of the operation? So about the operation, the specific amount of the improvement cannot be disclosed. But of course, as a manufacturer on a daily basis, we are trying to improve our profitability and productivity and reduction of the cost. So op immersion target in order to achieve that target we have some milestones and towards them uh well step by step uh we are making improvement so we have the targets so that we can achieve the annual improvement so you're trying to achieve that improvement in profitability and So for this fiscal year and next fiscal year, you have the room for improvement. So basically, improvement of profitability is a very important theme for us, so we will steadily work on it. But the result of which, as we mentioned, depends on the product mix and also the situation. But as for the basic measures to improve the profitability will continue to carry them out and impact of them. Along with to have expected results. Thank you very much for your comment. My second question is about to the. A sales idea about the first and second quarters. So you mentioned about WFE and President Goto said that because of the certainty there may be some delay in the start for this fiscal year. So how do you see the first quarter? And as for the second quarter, you already finished the shipment for the sales according to the second quarter. So I think you have a good visibility. So would you advise us what visibility you have? I'm sorry for the question about the short period of time, but SBA's first quarter sales shift or sales delay Is there any delay? And about the visibility of the second quarter sales. So quarter by quarter, we have the sales accounted and every quarter there are some changes taking place and that's true. And as for the second quarter, we see some changes. But today, as for the sales for the second quarter, as you mentioned, we have the good visibility. you very much and follow-up question so self in second quarter do you see any risk factor and where are they if there are any or you don't have any risk factor you need to mention at this moment we do not see any risk big risk factor but we account that sales so when we complete the installation so There are some cases that we cannot complete the installation and equipment, but we do not expect any big risk from this. So at this moment we don't have any big risk factor we expect. Thank you very much.

That's all for me. And this is Kondo, let me add.

So the case we call the troubles. So as for the completion of the installation, we have the very severe standard. There are some cases that the situation maybe looked different from the site. So I cannot say that we can guarantee 100%. There's no completion of the installation. So there may be some. Thank you very much, Hirakawa-san.

So next, Jeffrey, Mr. Nakano-myo, please.

I am Nakano-myo from Jeffrey's Securities. Can you hear me okay? Yes. I'm sorry to repeat the similar questions.

The Q2, the breakdown, China and Jiran are expected to increase. I have a sense of discomfort. Jiran is going to increase in South Korea, I can understand, but in China, the proportion of Korea remains the same. And then China, the proportion is going to increase. And then the DRAM also is increasing. And do you have a visibility on that? Or the base initial plan and the first half forecast, there are some difference by application, but no change by destination. And so it seems like you keep the Q2 line application by destination coming from the accumulation or are you willing to show the stability in the first half So we don't have any intention to maintain this initial plan. According to the customer's investment plan, we offer our products, it happens to be this result. And so, as you mentioned, the Q2 sales, the China's portion data sales in China, When we look at this quota, it's large. That is a fact. But we haven't manipulated anything. We didn't have any intention to make any intention. Sorry, the standard of installation, the completion standard, Mr Nakano-myo captured the trends at the other companies, and the timing may be different somewhat, and that's why you feel a sense of discomfort with the difference, and please take that into consideration. From the Q1 to Q2, any delay or the shift from Q1 to Q2, but the data is going to increase as is assumed. Yes, that's correct understanding. Next is a different business around investment, current investment, and the leading edge process. In order to capture the leading edge, the investment, you are increasing the the R&D and the data miniaturization process, and the leading edge process, the POR capturing forecast. Can you explain those areas? We are good at advancing the device, the leading edge device, and we are going to capture the POR in that area. We are taking various initiatives. I cannot give you details on that, but on the IR day, what kind of initiatives we are going to take, what we are taking, I would like to explain on the IR day. we establish the R&D basis overseas in order to capture or strengthen the capturing the POR of leading edge devices investment. And so we take measures to grow our strong area. This is what we are striving for.

cleaning equipment or the cowards area.

The what is your forecast? We are working on that just for the this initiative. I cannot give you the details specifically.

They we have an opportunity, but would like to make an announcement. Thank you very much. Thank you very much, Mr. Next, let me invite Mr. Yasly from UBS Securities. This is Yasly from UBS. Can you hear me? Yes, I can hear you. I would like to

with a question on the impact of the export restriction. So at the end of December last year, there were new regulations imposed. And in the past six months, did you see any change in the share on yourself and also on the competitors? So I want to know about the changes taking place in the past six months. And also after the inauguration of Trump administration, The other day, the policy on AI applications was announced. So after the integration of Trump administration, do you pay any specific attention or special attention to the policies by the Trump administration?

As for the regulation, we do not see any big change.

the subject of the item of the regulation may increase a little bit. We have such information, but we do not see any big change in the regulation relevant to our business. So as according to the original plan, we will carry out the business. And after the start of the Trump administration, we did not see any big change, basically. but because of the nature of Mr. Trump, there's some uncertainty about what remark or what policy he'll come off. But at present, he may pay attention to Russia, so regulation against China, I think he is trying to find out what he should do with that. That's the information we don't have, but we haven't heard anything concrete. So we'll continue to take the attitude and the measures as we had. Thank you very much for your answer. My second question is about the China business. So I think the local players in China are gaining the capabilities. And the event, which is very attractive and very active, So do you expect that China's local suppliers will be prioritized in China? So at present, do you see any decline in the number of customers for you? Or do you expect or do you see that a stronger relationship with the customers for the advanced products or equipment? So please let me have the coloring illustration. So as for the local suppliers in China, It is true that they are gaining more capabilities year after year. In various areas, we see the presence of the local Chinese players. I think you are finding the situation in such a way. But in the advanced area where we have the strength, still there are not many, there's no Chinese local players. So for the memory and power device area, there are many Chinese local players. But in order to differentiate ourselves from the others, we're taking various measures. So maybe it is true that we can expect that they will catch up with us little by little. But at this moment, we do not regard them as a big threat, which will have a big impact on our business now. But as I mentioned earlier, Chinese local players are gaining their capability now. we have to take measures or continue to take measures so that we can continue to be able to differentiate ourselves from these players in China.

Thank you very much. Thank you, Mr. Yasuhi. Mr. Wadaki, how about the current situation? Can you hear me?

Yes, we can. One question. The package uh is moving and specifically this fiscal year and next fiscal year search forecast for your prospect would you explain that packaging area so we explained that the briefing the wave cleaning we are good at and also last year that we released the new plp quota remote and will make a contribution to ourselves this fiscal year as well. And the size of ourselves, it's the single digit billion yen this fiscal year that we capture them and then they connect them to the further increase. Next fiscal year, it will become double digit video yen level. It depends on the market situation. The current trend is moving that way. So we would like to capture those numbers. And that's all for me.

Thank you. Thank you, Baraki-san. We have two more minutes.

So this will be the last question to entertain from SITI group.

Mr. Shikano? Mr. Shimano? I have two questions.

First is about how to see the focus for this year. So. Three months ago. Your expectation for the fourth quarter was uncertain, so maybe in summer when you see the leader time, you can have the more specific idea on the fourth quarter. And my interpretation is that. You sounded a bit conservative. So. we can expect an upside. So I want to know how you see the situation now. And next is about the IELTS day. Thank you very much for having that event. And I think we can hear about the directions from now. So if you share with us any general idea about the trend from now, which is available at this moment, please give it to us now.

Thank you. Thank you for your questions. Outlook of the fourth quarter.

Even now, we cannot give you the concrete idea about it. So finally, the talisman on Japan was decided. So in that sense, from now, based on what was decided, we will study what we will do. So not only screen haulings, but the customers overseas who buy the equipment and materials from Japan will study their plans from now. So in that sense, the outlook into the fourth quarter maybe we have to be waited one or two months. So maybe, and at the time, I think we can have the more clear visibility about next fiscal year and onward. So try to make the more detailed study. And I think your second question is about what I am doing as myself. So towards the next step of growth, we have to make preparation. So in that sense, We are now reviewing the current business to find out where we can achieve the greater growth. And in order to make the next step, I think a current period is a period for the preparation. So we'll make the proper investment into research and development or future growth. And we now secure the budget for that. So we will come up with the most specific plans and make investment and make the harvest. So that's what we are going to do in this year. And that will be reflected in the next midterm management plan so that we can achieve the target of the charter. So whole group will work toward that big target. And as was pointed out, there are so many things we can still do and improve as screen holdings. And I'm telling it to my employees that we still have room for further growth. And we are not perfect yet. So when we take the proper appropriate measures, we can achieve the growth. So we will make preparation, take measures, achieve the growth. So I'm sure that we can achieve the good results when we make the good preparation and take all the measures available. And when the specific measures are decided, let me take another opportunity to make report on them to you. Thank you very much. Thank you very much, Mr. Shibano. And this concludes the earnings call by Screen Holdings for the first quarter ending in March 2026. Thank you very much for your participation despite your busy schedule to the end of the program. Thank you very much.