SCREEN Holdings Co., Ltd.

Good afternoon, everyone. Now we'd like to start the earnings call by screening holdings for the second quarter fiscal year 2026. And let me introduce you to these speakers. So we have Masato Goto, Representative Director, Member of the Board, President, Chief Executive Officer. This is Goto. And Yoichi Kondo, Director, Member of the Board, Executive Vice President, Chief Financial Officer. And in addition to CEO and CFO, we have three executive members. Manabu Ishimura, Managing Executive Officer. This is Ishimura. And Akihiko Miyagawa, Senior Executive Officer. This is Miyagawa.

Chiho Otobe, Executive Officer. This is Otobe. Thank you very much for this opportunity.

Now, we will invite Vice President Kondo to give us the presentation on Consolidated Business Results and Forecast. Mr. Kondo, microphone is yours. Thank you. Let me give you the Consolidated Business Results and Forecast. First, this is outline big concerted earnings for the first half. Net sales 274.2 billion yen, operating income 46.4 billion yen, and OP immersion 16.9%. And year-on-year, the sales and profits both decreased. And SBE, sales and profits both fell year-on-year. And some of the projects, the value recognition was shifted to the second half. And this is the... This is a decrease from the outlook in July. So as for the full year forecast, we haven't changed it yet. And as for FT, sales and profits rolled significantly year on year. And because of the strong display market, so the sales of OLED equipment increased. And on the balance sheet, the equity ratio is 64.4%. It has been stable. And this is the details of the consolidated earnings. So the net sales, 274.2 billion yen. Operating income, 46.4 billion yen. OP margin, 16.9%. Ordinary income, 46.8 billion yen. Net income, 31.8 billion yen. And this is the composition of group sales by destination. Japan, 16%. Taiwan, 25%. China, 40%. Korea, 5%. 3% North America 8% Europe 4% Composition of group cells by segment Other 0.4% PE 1.8% FT 9.8% GA 9.3% SPE 78.8% And this is the concerted earnings by segment. SBE in the first half, 218.5 billion yen, and operating income was 48.6 billion yen, will be merged in 22.3%. That is, the sales and profits both fell because part of the sales shifted to the second half. Sales for DRAM and flash memory rose. The ratio of sales to China declined. Next, GA. Sales, 25.8 billion yen. OP income, 1.2 billion yen. OP immersion, 4.7%. Sales grew while profits fell. That is because of the impact of the U.S. TALIF and effects. FTE net sales 23.5 bn yen, OP income 3.9 bn yen, OP immersion 16.9%, sales and profits both grew. Manabu Holdings Co., Ltd. sales increased and we could achieve the significant improvement in the OP immersion. NPE 5.5 bn yen sales minus 0.2 bn yen OP income loss. and Sales and Profits both fell, expecting capital investment to recover in the second half and onward. And this is the financial standing, and this is the balance sheet on a consolidated basis. And total asset is 667.2 billion yen, so it increased. And equity ratio now stands at 64.4%, so it's been quite stable. And this is the cash flow on a consolidated basis. In the second quarter, operating cash flow amounted to 23.8 billion yen and we'd spent 2.5 billion yen for the investment. So we have the finance cash flow of the 21.2 billion yen, and the first half of that operating cash flow, the 30.8 billion yen, and investment cash flow was minus 12.2 billion yen, and financing cash flow was 18.5 billion yen, and financing cash flow was minus 29.9 billion yen. That is used for the dependent payment and investment. Next is island expenses, capex and depreciation, amortization. So L&D is 38 billion yen, CAPEX 28 billion yen, depreciation and amortization 15 billion yen. There is no change from the April figures. Many with the SPE, the L&D expenses and personal expenses are in line with our expectation. And CAPEX, all the L&D, manufacturing, IT, all landed at expected range. And this is the analysis of applausing income growth. So again, Last year's first half, we made the comparison against the 58.2 billion yen because of the sales capacity utilization, and there's some shift to the second half, and also the profitability. There was a big impact from the shift to the second half, and there's a minus 9.5 billion impact on fixed cost, so it stands at 46.4 billion yen. And there's a contribution by FD and GA, but there is a shift in the SBE and profitability. declined in the GA, and fixed cost increased due to the growth investment mainly attributable SBE, including R&D expenses, personal expenses, depreciation, amortization, and exchange rate mainly impacted negatively on GA. And this is the business forecast. So on the right side, you can find the forecast. So it sells 621 billion yen, OP income 150 billion yen, OP version 18.8 billion yen, and original income 170 billion yen, and net income 88% annual change from the original forecast. SBE, 102 billion yen, and OB immersion, 121 billion yen, 2.4% of OB immersion, GA, 53 billion yen, 2.5 billion of OB income, 4.7% of OB immersion, no change. And FT, now, the focus of net sales was changed to the 46 billion yen, and it's because of the actual performance the change was made. And PE, no change, net sales, 15 billion yen, and OB income, plus 1 billion yen. FT,