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.