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Good evening, everyone. I'm Hideki Somemiya, CFO of Resonac Holdings. I'd like to express my sincere gratitude for your continued understanding and support for the company. Today, I will explain the overview of the financial results for the first quarter FY 2026 ending December.

First, please turn to Page 2 for key takeaways. There are 3 main points I'd like to share with you today. First, Semiconductor and Electronic Materials segment continued to perform strongly. Although the January-March quarter is usually affected by seasonal factors, Chinese New Year, revenue of the back-end semiconductor materials reached a record high on a quarterly basis due to the continued robustness of products for advanced semiconductors such as AI.

Second, core operating profit increased year-on-year. In addition to the stronger performance of the Semiconductor and Electronic Materials segment year-on-year, the effects of the structural reform implemented in the graphite electrode business in FY 2025 materialized and the reduction in losses in the Chemicals segment contributed to the overall profit increase.

Third, we revised the first half 2026 forecast upward. In particular, in the Semiconductor and Electronic Materials segment, products for advanced semiconductors such as AI grew faster than our previous forecast and that led to a significant upward revision of the previous announcement. Regarding the full year forecast, while progress has been steady, we have not revised the forecast at this time due to the uncertainty related to the Middle East situation.

Now let me explain 2026 first quarter consolidated financial results. Please turn to Page 4. This slide shows the consolidated results for January-March 2026 and year-on-year comparison. Revenue for this January to March quarter was JPY 307.9 billion, although the Semiconductor and Electronic Materials segment showed a significant revenue increase year-on-year. Overall company revenue decreased JPY 13.2 billion year-on-year due to revenue decline at Crasus Chemical and the impact of the transfer of Fiamm Energy Technology, the lead-acid battery business.

Core operating profit increased by 2.3-fold year-on-year to JPY 33.6 billion, up JPY 18.8 billion. Nonrecurring items shown below, deteriorated by JPY 10.6 billion year-on-year due to factors such as the recognition of one-off expenses associated with revision of the retirement benefit plan in this quarter. Profit attributable to owners of the parent was JPY 15.3 billion, up JPY 6.5 billion year-on-year.

EBITDA was JPY 56.1 billion and EBITDA margin was 18.2%, up 6.2 percentage points year-on-year. EBITDA margin without Crasus Chemical, for which consideration for partial spin-off is ongoing was 21.6%, clearing the target of 20%.

Net D/E ratio improved slightly from 0.83 at the end of the previous fiscal year to 0.79x. As usual, and as stated in the footnote, net D/E ratio is calculated by evaluating 50% of subordinated loan as equity capital, based on the credit rating given by Japan Credit Rating Agency. We continue to work toward improving financial position with the goal of stably maintaining a net D/E ratio of 1x or less.

Please turn to the next slide, Page 5. This graph shows the breakdown of core operating profit change by factor between JPY 33.6 billion for January to March this year and JPY 14.8 billion in the previous year. Breaking down this year-on-year profit increase of JPY 18.8 Billion. First, the sales volume increased profit by JPY 11.1 billion due to the strong Semiconductor and Electronic Materials segment. Next, sales price reduced profit by JPY 5.8 billion. This was due to year-on-year decline in naphtha prices, which led to lower selling prices in Crasus Chemical.

Regarding variable and fixed cost, while there were factors in each segment to reduce profit, including fixed cost increase such as labor cost and rising raw material costs, in Crasus Chemicals segment, profit increased due to year-on-year naphtha price decline, and they resulted in JPY 5.8 billion profit increase. Foreign exchange rate increased profit by JPY 1.2 billion, mainly due to the yen depreciation of about JPY 4 to the dollar year-on-year. Finally, others increased profit by JPY 6.5 billion. This was due to increased profit resulting from an improved product mix in the Semiconductor and Electronic Materials segment, feedstock adjustment and higher sales at overseas sales company.

Slide 6 shows segment breakdown. Here, we present revenue, core operating profit, EBITDA and margin by segment and year-on-year comparison. In terms of significant year-on-year changes, the Semiconductor and Electronic Materials segment served as a key driver with 21% increase in revenue and 74% increase in profit. As for the other segment, except for Process Chemicals, which showed a decline in revenue and profit due to the periodic shutdown maintenance, all other segments increased revenue and profit.

From Slide 7 to 10, segment summaries are presented. In Semiconductor and Electronic Materials on Page 7, revenue increased 21% year-on-year to JPY 134.7 billion. Core operating profit increased JPY 14.4 billion or 74% year-on-year to JPY 34 billion. The growth in revenue and profit was mainly driven by back-end semiconductor materials, which increased sales volume for advanced semiconductors such as AI.

Device Solutions was almost flat year-on-year, mainly due to the impact of some inventory adjustment for SiC epitaxial wafers. We expect steady expansion of sales in hard disk business in this fiscal year. And as press-released on May 11, we plan to expand the production capacity going forward. The segment's EBITDA margin also improved significantly from 27.1% to 34.0% year-on-year.

Page 8. Revenue for the Mobility segment increased by 1% year-on-year to JPY 47.3 billion. Core operating profit increased by JPY 1.8 billion year-on-year to JPY 2.9 billion. Factors for revenue and profit growth includes the recovery of the automotive market in Thailand and increased demand from some customers.

The Innovation Enabling Materials segment performed steadily, though results varied by product. Revenue increased 3% year-on-year to JPY 22.7 billion, and core operating profit increased JPY 0.3 billion year-on-year to JPY 2.4 billion. Segment's EBITDA margin was 17.0%, which kept on clearing the target of 15%.

Next, Page 9 shows Chemicals segment. Revenue increased 8% year-on-year to JPY 40.8 billion and core operating loss narrowed JPY 4.7 billion to the loss of JPY 1.6 billion. Much of the revenue growth and the reduction in loss was driven by the graphite business, where the revenue increased mainly due to the recovery in sales volume of graphite electrode and the loss shrank due to the realized structural reform effects.

The final page of the segment summary, Page 10 shows Crasus Chemical. Revenue decreased by 34% year-on-year to JPY 51.7 billion, and core operating profit declined by JPY 1.4 billion to a loss of JPY 0.5 billion. This was due to the periodic shutdown maintenance from February to April 2026 conducted once every 4 years. The progress toward the partial spin-off of Crasus Chemical has been smooth. We have already completed the approval of amendment to the Article of Incorporation regarding the resolution for dividend at AGM as well as the submission of the listing application to the Tokyo Stock Exchange.

This concludes segment summaries.

On the next -- Page 11, as major items below core operating income, we present the details of nonrecurring items on the left and the financial income and cost equity earnings on the right and the year-on-year comparison. Nonrecurring items on the left deteriorated by JPY 10.6 billion year-on-year. This was due to one-off expenses booked in the quarter in connection with the revision of the retirement benefit plan on the right. Financial income and costs improved JPY 2.1 billion year-on-year to a net loss of JPY 2.4 billion. This was due to the foreign exchange loss, which had been recorded in the previous year, was almost 0 in this fiscal year. Finally, equity earnings were flat year-on-year at JPY 2.9 billion.

Next, Slide 12 shows consolidated statement of financial position. Regarding assets on the left, total assets at the end of this quarter was JPY 2,109.3 billion, remaining almost flat from the end of the previous fiscal year. Total liabilities were JPY 1,371.3 billion, a decrease of JPY 7.8 billion from the end of the previous fiscal year. This was due to the temporary decrease in accounts payable associated with the periodic shutdown maintenance as well as a reduction in interest-bearing liabilities. Total equity increased by JPY 10.4 billion from the end of the previous fiscal year to JPY 738 billion. This was mainly due to an increase in retained earnings and further depreciation of yen.

Next, let me explain 2026 first half performance forecast. Please turn to Page 14, 2026 first half consolidated forecast. Based on the strong performance in the Semiconductor and Electronic Materials segment, we revised upward the first half forecast that was announced on February 13. Regarding the exchange rate assumption for the first half, we set it at JPY 156.4 to dollar based on the actual rate of JPY 156.9 to dollar recorded in Q1. Under the revised forecast announcement this time, we expect the first half revenue of JPY 650 billion and core operating profit of JPY 74 billion. This is an upward revision of 7% for revenue and 40% for core operating profit vis-a-vis the previous first half forecast. There are no significant changes from the previous forecast in nonrecurring items, financial income and costs and equating earnings.

Net income attributable to owners of the parent is forecast to be JPY 38 billion, up JPY 18 billion from the previous forecast. Regarding the KPIs in the first half forecast, EBITDA margin is 18.1% and EBITDA margin, excluding Crasus Chemical, is 21.8%, exceeding the target of 20%. While the progress toward the full year forecast is steady, considering the uncertainty related to the Middle East situation, we kept the full year forecast unchanged.

The next slide, Page 15, shows the revised first half revenue and core operating profit forecast by segment. We significantly revised upward the forecast for the Semiconductor and Electronic Materials segment due to strong performance in AI-related materials. For other segments, we have made revisions based on the currently foreseeable factors, but there are no major revisions to the performance outlook. Forecast for the Crasus Chemical was kept unchanged as we are currently in the process of applying for a listing in preparation for the partial spin-off.

Page 16 and beyond are the appendix. So please refer to them as needed.

This concludes my presentation. Thank you very much for your attention.

Thank you very much for your time today. I'm Takahashi, CEO of Resonac Holdings Corporation. I'll explain the progress of Resonac's vision and our initiatives for future growth. Today, I will talk about these 5 points. Let me start with Resonac's vision.

In 2022, we announced a long-term vision, and we have been advancing key strategies shown there, particularly promoting the structural reform through selection and focus. To strengthen our businesses earning power, we shifted to capital-efficient management, exiting and restructuring unprofitable businesses while executing our strategy through aggressive investment in growing semiconductor field, co-creation innovation and the talent and cultural transformation.

Through these ongoing efforts, we have steadily built our foundation to achieve the improved profitability and enhanced growth potential. Based on the portfolio reforms we have advanced so far, we determined to position semiconductor and electronics materials at the heart of our business. Going forward, we will shift our focus from a phase-centered structural reform to Phase 2, where we realize growth as concrete results, aiming to become a global top-tier functional material company.

Our vision is to achieve an EBITDA margin of 20% and a multiple of 15x with Semiconductor and Electronic Materials segment, accounting for over 50% of our business structure within total sales exceeding JPY 1 trillion. Our purpose is to change society through the power of chemistry. As we transition to Phase 2, we have updated the vision we set in 2022, incorporating social demands and discussion from both top-down and bottom-up perspectives. We aim to co-create to realize a more sustainable planet and the society where people can live happier lives, endeavoring to become a global top-tier functional materials company.

Starting from our 3 materialities, we reviewed our previously stated due initiatives to realize growth. We reshape, expand and support growth by optimizing the business portfolio to improve capital efficiency, strengthening growth through co-creation and innovation and establishing a sustainable growth foundation through co-creation culture.

Next, I will explain our initiatives to shape our growth trajectory through optimizing business portfolio. Resonac handles a wide range of functional materials from chemicals to semiconductors and electronic materials. We enhance the functions required in various aspects of daily life in the industry and through co-creation, connect them to new values such as enhanced mobility performance and the evolution of advanced semiconductors. That is Resonac's strength.

The Chemicals segment stably supplies products that support social infrastructure while advancing carbon neutrality through initiatives, including promoting chemical recycling of plastics. In the future, we will enhance our plastic chemical recycling capacity and expand the purity and supply capacity of circular chemical raw materials.

The Innovation Materials segment serves as a platform for our technologies by unleashing required functions of materials. Our business model combined the group's broad range of material technologies to create high value-added products for growth areas such as advanced semiconductors. The Innovation Materials product portfolio not only generates profits on its own, but also creates further value by expanding into growth areas through technological collaboration and functional provision within the group.

The Mobility segment aims to enhance the value it provides by advancing 3 mobility function of acceleration, handling and braking through the power of chemistry, through collaboration with automotive manufacturers, including OEMs, during the development stage, we are evolving into solution-driven business model, securely capturing needs such as downsizing, lightweighting and eco compliant.

In the Semiconductor and Electronic Materials segment, we provide value beyond individual materials based on our deep insight into chemistry and semiconductor devices. We offer solution-based proposals that combine a wide range of materials technologies to meet the increasingly sophisticated and complex requirement of advanced semiconductors. By leveraging our co-creation platforms and the variation environment, we have established a system that enables us to quickly grasp the latest technological trends and significantly enhance the precision and speed of material development in the advanced semiconductor packaging field.

The expansion of generative AI is expected to drive substantial growth in both the number and performance of AI servers. With this, semiconductor packaging is becoming larger and increasing memory stack count, demanding higher performance of back-end materials. Against the background, we anticipate our AI-related back-end materials will achieve high growth with a CAGR of 25% to 50%, which will serve as a major growth driver for our company.

Next, I'll talk about our efforts to expand our growth by leveraging the strength and the structure of our semiconductor materials. We believe our strengths in the semiconductor materials lie in our deep customer process insight, rapid validation and proposals, proactive market intelligence and agility. Centered on co-creation, I will explain specifically how we connect these strengths to the growth of our semiconductor materials business and accelerate and expand it.

We have broad dialogue channels, not only with our direct customers, but also across the entire supply chain, including material manufacturers, in other fields, manufacturing equipment makers and even end users. As a material manufacturer, we have a global leading back-end variation platform, enabling us to conduct verification at the same level as our customers from material development to the implementation stage. Furthermore, through technical dialogues in each region, we have a mechanism to quickly detect and share market changes and continuously generate co-creation both inside and outside the company.

Through these initiatives, Resonac continued to be selected as a trusted partner, leading the development and implementation verification of advanced semiconductor materials. Resonac globally offers a wide range of semiconductor materials from front-end to back-end processes. Furthermore, leveraging the world-class packaging evaluation capabilities, we can make proposals based on the results from implementation and reliability evaluations. This structure enables us to offer materials proposals that proactively develop next-generation materials, starting from the stage where package structure is conceived, and this is a unique strength of our company.

Generative AI is driving a major shift in the semiconductor market towards AI-driven growth. In order to quickly grasp these changes and engage directly and deeply with companies working on the development of advanced semiconductors for AI, we established US-JOINT in the United States and are currently working with 12 partner companies to validate challenges related to advanced semiconductor back-end materials.

Our research and development center is scheduled to begin full-scale operations in the first half of this year. This framework allows us to grasp the latest market needs in real time and establish a system that can accelerate the materials and process R&D. Furthermore, to accelerate the co-creation in the field of advanced packaging, last year, we established JOINT3, which brings together 27 companies, including equipment and design tool manufacturers. Here, we will create a prototype environment for organic interposers at the panel level and promote the development of suitable materials, equipment and design tools.

By obtaining verification results that are close to the actual structure, we will accelerate the development of participating companies by providing a forum for co-creation that goes beyond the research stage and looks ahead of the -- ahead to the mass production, we are strongly supporting the realization of advanced semiconductor packaging innovation. As a chemical manufacturer, Resonac holds numerous patents in the semiconductor packaging field, and this accumulated knowledge is a major strength of our company.

Combining this knowledge with AI and MI, which stands for Materials Informatics, we are now able to accelerate research and development for material exploration to design verification in the seamless manner. Furthermore, not only computer science experts, but also on-site semiconductor researchers and developers themselves are actively working to utilize AI and MI and as a result, improvements in the development speed and the results are already beginning to become visible.

Next is supporting our growth initiatives, fostering a culture of co-creation and employee happiness. Over the past few years, Resonac has undergone major transformations in both its business and organization. The next stage we are focusing on is enhancing the happiness of each and every employee through putting our purpose and values into practice. By expanding our work style that value physical and mental health, connections with colleagues, growth and sense of accomplishments, we will embody a co-creation culture, leading to sustainable productivity and corporate value improvement.

Since the integration, the CEO and CHRO have worked together to implement measures to improve engagement and strengthen the penetration of our purpose and values. As a result, our scores have steadily improved, and we have been able to raise them to a certain level. On the other hand, the score level has stabilized recently, and we recognized that the new initiatives are required to move forward to the next stage of growth. To improve engagement, we are promoting initiatives that encourage autonomy and co-creation through learning, dialogue and challenge.

Specifically, we have expanded opportunities to directly hear the voices of each employee through Moyamoya meetings led by the CEO and CHRO as well as on-site dialogue sessions. Also, we support challenges and growth by hosting the global award AHA! to recognize examples of co-creation and learning best to encourage independent learning. These efforts are steadily spreading positive changes in awareness and behavior. By putting our purpose and values into practice, we have been able to foster a co-creation culture.

But going forward, we will take this step further and further strengthen our investment in human capital. Through skill-based position management, flattened organizational hierarchies and the project-based work style, we will create an environment where colleagues can connect with each other, grow together and respond quickly to an increasingly complex external environment, thereby driving business growth. As a result, employee engagement and happiness will increase, ultimately leading to the human capital ROI or enhanced added value productivity.

Finally, I would like to talk about our capital strategy to support sustainable growth. We aim to maximize corporate value by thoroughly balancing growth investment, shareholder returns and financial soundness. First, I will explain our business portfolio transformation. Resonac has been reviewing and reshaping its business portfolio from the investors' perspective in order to reduce the conglomerate discount and improve capital efficiency. Three factors for judgments are fitness for our company strategy, profitability and capital efficiency and whether we are the best owner. These efforts are not temporary, but will be continually reviewed in response to changes in environment with an aim of realizing an optimum business portfolio.

Our vision for the portfolio is to place the Semiconductor and Electronic Materials business at the core of growth and expand them through forecast investment. In particular, we will capture demand for semiconductors, driven by the development of AI and achieve continuous cash generation through sustained growth in advanced semiconductor-related products. At the same time, in the graphite electrode business, we will steadily improve profitability and reduce net interest-bearing debt by promoting the realization of strategic options and steadily proceeding with the partial spin-off of the petrochemical business.

Through these efforts, we will simultaneously enhance our cash generation capabilities, improve profitability and optimize our financial leverage, leading to improved multiples for our corporate valuation. We are promoting a capital policy that aims to achieve an ROIC of 10% over the medium to long term. We will allocate more than half of our operating cash flow to growth segments, focusing particularly on the semiconductor materials business in order to significantly strengthen our profitability.

Regarding shareholder returns, we will place emphasis on TSR, and we also consider stability in dividends. We aim to further increase our share price by achieving a stable EBITDA margin of 20% and EBITDA multiple of 15x. This concludes my presentation. The numbers we have posted are signposts, but our eyes are fixed on something far beyond that. Without fear of change, we will co-create and change society with the power of chemistry. Please see for yourself the trajectory of growth that marks Resonac's second chapter. Thank you for your attention.

Thank you, Mr. Takahashi. Next, Mr. Somemiya, floor is yours.

Good evening, everyone. I'm Hideki Somemiya, CFO of Resonac Holdings. I'd like to express my sincere gratitude for your continued understanding and support for the company. Following Takahashi's presentation, I will now talk about the financial results for FY 2025 ended December, forecast for FY 2026 and the summary of the last 4 years as CFO. As I cover an extensive content, please bear with me if I may speak a bit fast.

Please turn to Page 2, today's key takeaways. I have 3 main points to share with you. First, core operating profit in the Semiconductor and Electronic Materials segment reached a record high, both on the quarterly and annual basis. In October-December quarter, strong demand for products targeting advanced semiconductors such as AI, coupled with sustained smartphone demand led to the segment record high profit for the second consecutive quarter. This also marked the record high annual segment profit achieving the remarkable 47% growth in profit growth.

Second, core operating profit increased year-on-year. Compared to the previous year, strong performance in the Semiconductor and Electronic Materials segment more than offset the weakness in the Chemicals segment, leading to a profit growth. Third, we expect core operating profit of JPY 140 billion in 2026. The Semiconductor and Electronic Materials segment is expected to maintain its robustness, primarily driven by products for advanced semiconductors such as AI and the effects of the rationalization measures implemented in the graphite electrode business in 2025 are expected to fully materialize, leading to Chemicals segment to return to profitability.

2025 consolidated financial statement. Please turn to Page 4. This slide shows the consolidated results for FY 2025 ended December compared to the previous year. First, revenue was JPY 1,347.1 billion, while the Semiconductor and Electronic Materials segment increased sales, Chemicals and Crasus Chemicals segment and others decreased. As a result, the company-wide revenue decreased by JPY 44.4 billion. Core operating profit increased by JPY 17 billion year-on-year to JPY 109.1 billion. Nonrecurring items showed a significant loss of JPY 62.5 billion. It recorded a gain on the sale of the former headquarter and land and buildings in the previous year, but impairment losses related to business divestiture were recorded this year.

Consequently, IFRS-based operating profit was JPY 46.7 billion, down JPY 42.4 billion year-on-year. Profit attributable to owners of the parent was JPY 29 billion, down JPY 44.5 billion as nonrecurring items recorded significant losses year-on-year, as mentioned earlier. EBITDA was JPY 203.4 billion. EBITDA margin was 15.1%, up 1.4 points year-on-year. EBITDA margin, excluding Crasus Chemical, which is under consideration for the partial spin-off was 18.4%.

This is a breakdown of core operating profit changes between JPY 109.1 billion this year and JPY 92.1 billion in the previous year by factor. Breaking down this increase of JPY 17 billion, sales volume was plus JPY 18.3 billion due to strong Semiconductor and Electronic Materials and others. Sales price was negative at JPY 30.7 billion. This was due to the impact of lower selling prices caused by the weak graphite electrode market conditions as well as the impact of lower naphtha prices year-on-year, which led to lower selling prices in the Crasus Chemicals segment.

Variable and fixed cost was plus JPY 23.2 billion despite fixed cost increases such as labor cost and higher raw material costs, which pushed down profit. Crasus Chemicals segment saw an increase in profit due to lower naphtha price year-on-year. Finally, others were plus JPY 6.1 billion. This was due to the impact of the hard disk media business in the Semiconductor and Electronic Materials segment that cleared high-cost inventory in the previous year and increased revenue by overseas sales companies. Breakdown of segment core operating profit changes are described on Page 6 and 7. Please refer to them later.

Page 8 shows information by segment. Here, we show revenue, core operating profit and the EBITDA margin by segment compared to the previous year. As a notable year-on-year change, revenue in Semiconductor and Electronic Materials increased 14% and core operating profit was record high JPY 108.4 billion, serving as a key driver. On the other hand, all other segments showed declines in both revenue and profit, particularly the Chemicals segment saw a significant drop in revenue and fell into the red due to the sluggish graphite electrode market.

Page 9 shows the quarterly performance by segment. Regarding the Semiconductor and Electronic Materials segment in the latest October-December quarter, strong volume growth in products for advanced semiconductors such as AI, combined with continued robust demand for smartphones, which has been sustained since July to September quarter, resulted in record highs, both revenues and core operating profit for the second consecutive quarter. And EBITDA margin also achieved 33.1%.

From Page 10 to 14, segment summaries are shown. On Page 10, for Semiconductor and Electronic Materials, revenue was up 14% year-on-year to JPY 506.3 billion. Core operating profit was up JPY 34.6 billion or 47% year-on-year to reach JPY 108.4 billion. The primary drivers of this revenue and profit growth were semiconductor back-end materials, which saw increased sales volume for advanced semiconductors such as AI and Device Solutions, where revenue for hard disk media increased due to the recovery in data center demand. In this year, the proportion of AI-related products in back-end semiconductor materials sales grew steadily throughout the year, growing from around 10% in the previous year to 20%. The segment's EBITDA margin also improved significantly from 25.9% to 30.2%, achieving the target level of 30%.

Page 11 shows Mobility. Revenue decreased 11% year-on-year to JPY 178.4 billion. Core operating profit decreased JPY 1.9 billion to JPY 4.4 billion. Most of the decrease in revenue was due to the divestiture of secondary battery packaging materials and food packaging materials as well as a decline in demand from certain domestic customers.

Page 12 shows Innovation Enabling Materials. Revenue was down 5% year-on-year to JPY 92.2 billion. Core operating profit was down JPY 0.9 billion year-on-year to JPY 10.4 billion. Both revenue and profit decreased due to lower demand for certain products affected by the sluggish automobile market. Despite lower revenue and profit year-on-year, margin was sustained and EBITDA margin cleared the target level of 15% for 2 consecutive years in this segment.

Page 13 shows Chemicals. Revenue was down 14% year-on-year to JPY 174.4 billion. Core operating profit was down JPY 7.2 billion to a loss of JPY 5.5 billion. The major cause of the revenue and profit decline was graphite business, which suffered reduced sales volume and price due to the sluggish graphite electrode market.

Finally, Page 14 shows Crasus Chemical. Revenue was down 9% year-on-year to JPY 300.3 billion. Core operating profit was down JPY 3.9 billion to JPY 4.7 billion. Revenue decreased due to lower selling prices following the drop in naphtha prices and the profit decreased due to lower sales and deterioration in inventory valuation differences. That's all for the segment information.

Page 15 shows major items below core operating profit and the breakdown of the nonrecurring items on the left and the financial income and cost, and equity in earnings on the right compared to the previous year. First, the nonrecurring items on the left deteriorated JPY 59.4 billion year-on-year. In the previous year, gains on the sale of fixed assets, including the sale of the former headquarters land and buildings contributed significantly to the positive.

But in this year, due to the absence of such large-scale asset sales, the result worsened markedly. Furthermore, this year recorded the impairment losses related to business divestiture and losses on business restructuring, and that led to the significant weaker result year-on-year. A major part of impairment loss in this year is related to the business divestiture of Fiamm Energy Technology, the lead-acid battery company and automotive molded parts business. Financial income and costs on the right show minus JPY 10.9 billion, almost flat year-on-year. Equity in earnings increased JPY 2.5 billion year-on-year, partly due to the negative impact of temporary cost settlement in the previous year.

Page 16 shows consolidated balance sheet. First, regarding assets on the left, total assets at the end of the fiscal year were JPY 2,106.7 billion, down JPY 65.9 billion year-on-year. This is primarily due to the decrease in cash and cash equivalents with redemption of corporate bonds. While assets held for sales increased, this was due to the divestiture of the automotive molded parts, which led to transfer from trade receivables and inventories.

Total liabilities were JPY 1,379.1 billion, down JPY 101.5 billion year-on-year. This was mainly due to the decrease in interest-bearing liabilities. Total equity was 727.6 billion, up JPY 35.6 billion year-on-year. This was mainly due to an increase in retained earnings due to recognition of net income for this year. Let me talk about the major indicators below. Net D/E ratio increased slightly from 0.74 at the end of the previous year to 0.83x. This was due to the early repayment of JPY 137.5 billion of subordinated loans, which are recognized as 50% equity by Japan Credit Rating agency at the end of April through regular senior loans. We continue to strive for net D/E ratio below 1x as our target to improve our financial position. Finally, ratio of equity attributable to owners of the parent to total assets equivalent to equity ratio improved from the end of the previous year to 33.2%.

Next, let me explain 2026 performance forecast. Please turn to Page 18, 2026 consolidated forecast summary. For currency, we assume JPY 150 to $1. Revenue will be JPY 1,310 billion, core operating profit will be JPY 140 billion. Nonrecurring items will be down significantly year-on-year to minus JPY 35 billion and IFRS based operating profit will be JPY 105 billion. Profit attributable to owners of the parent will be up JPY 48 billion year-on-year to JPY 77 billion. Key financial indicators include an EBITDA margin of 17.9% and EBITDA margin, excluding Crasus Chemical, Olefins and Derivatives business will be 21.6%, exceeding the target of 20%. EPS basic earnings per share will be JPY 425 and the dividend will be JPY 65, the same as in 2025.

Slide 19 is highlights of consolidated forecast. Despite the drop of overall revenue due to the impact of business transfers of Fiamm Energy Technology in lead-acid battery and automotive molded parts business, Semiconductor and Electronic Materials revenue will grow as the segment captures continuously brisk AI-related demand. Core operating profit increases driven by strong Semiconductor and Electronic Materials segment, earning most of the core operating profit in Fiscal '26 again. As for as the graphite business is expected to return to profitability, Chemicals segment profit will rise. In FY 2026, the overall core operating profit is expected to increase JPY 30.9 billion.

Pages 20 and 21 are forecast summary by segment. Please turn to Page 20. Mainly with growth of materials for AI, revenue of Semiconductor and Electronic Materials is expected to increase 13% year-on-year to JPY 570 billion. Despite higher fixed costs such as depreciation, core operating profit is expected to grow 18% year-on-year to JPY 128 billion.

In Mobility segment, revenue forecast is JPY 144 billion, down 19% year-on-year. Core operating profit forecast is JPY 3 billion, down JPY 1.4 billion year-on-year. Most of the decreases are due to the divestiture of the automotive molded parts business in Japan and Thailand planned for Q2 of 2026 as well as the weaker demand from certain domestic customers.

As for Innovation Enabling Materials, revenue forecast is JPY 90 billion, slightly down year-on-year. Core operating profit, JPY 9 billion, down JPY 1.4 billion year-on-year due to the lower revenue and higher fixed costs.

Please turn to Page 21. Chemicals revenue forecast is JPY 190 billion, up 9% year-on-year. Core operating profit forecast JPY 8 billion, up JPY 13.5 billion year-on-year, turning profitable. Most of the growth is from graphite electrode business. In addition to the growth in sales volume, effects of rationalization measures implemented in 2025 are factored in.

Crasus Chemical revenue forecast is JPY 280 billion, down 7% year-on-year. Core operating profit is JPY 7 billion, up JPY 2.3 billion year-on-year. As large-scale maintenance is scheduled in first half of 2026, lower sales volume will lead to lower revenue, but with improvements of product market conditions and inventory valuation differences, core operating profit is expected to rise. Partial spin-off is planned for Crasus Chemical within 2026, after which the business is expected to become discontinued operations. The forecast assumes consolidation on a full year basis. In others and adjustments, both revenue and core operating profit are expected to come down due to the divestiture of Fiamm Energy Technology.

Page 22 shows 2026 first half and second half forecast by segment. In the first half, due mainly to Lunar New Year impact, demand for some products in semiconductor and electronic materials will decline. Because of the planned shutdown maintenance of Crasus Chemical, Chemicals revenue forecast is JPY 615 billion, core operating profit JPY 53 billion. In the second half, demand for smartphone increases with usual seasonality and AI-related product sales will grow. The revenue forecast is JPY 695 billion, core operating profit, JPY 87 billion.

Page 23 shows 2026 consolidated forecast and financial indicators. Looking at the debt level indicators at the end of December 2026, adjusted net D/E ratio forecast is 0.81x, below the target of 1. Lower net debt and EBITDA growth lead to net debt-EBITDA multiple improvement to 2.9x.

Page 24 is looking back and for further growth. It summarizes past 4 years since the effective integration and the policies to realize further growth.

Please turn to Page 25. This is the market environment and our key actions in the past 4 years since 2022. We underwent structural reforms for troubled businesses. For Mobility business that was in red for a long time and Hard Disk business that saw rapid drop in its performance, we executed drastic actions, including site closures and enabled turnaround.

More recently, the market deterioration led to the loss of graphite electrode business. Through the closures of multiple sites and workforce reduction, we turned it around from 2026. Growth businesses such as Semiconductors and Electronic Materials, we continued necessary investments even during the down cycle in 2023. One of the reasons why we are currently benefiting from the growth of the AI semiconductor is because we have been making preparations with our eyes on the future.

Next, let me explain key financial indicators. Page 26 shows our target, the long-term vision and the results of each year. Profitability indicators have not yet reached the target level, but we are making steady progress. During the down cycle, in 2023, EBITDA margin dropped to single-digit level. But gradually, it improved and reached 15.1% in 2025, getting closer to 20% target. Without the Olefin and Derivatives, it has improved to 18.4%.

Earnings per share, or EPS, target is JPY 500, but 2025 result was JPY 160 and much lower. This is due to the higher nonrecurring losses as we proceed with portfolio reforms. Although we use the actual EPS as one of the indicators to make it easier to show the profit growth of the recurring business, adjusted EPS, excluding nonrecurring items, are shown this time. Especially because of the profit growth as numerator, 2025 ROIC was 6.2%. We are gradually approaching 10% medium- to long-term target.

As for debt level, net D/E ratio has been improving through the repayment of the borrowings, stably keeping it under the target of 1. In 2024, net debt-EBITDA target of 3x or lower was added as a new target. 2025 result was 3.5x. Good progress is being made toward the target. We will continue to reduce the interest-bearing debt liabilities to ensure our ability to take necessary actions in a timely manner in the future.

Page 27, profitability indicators and target levels going forward. We are committed to achieve current targets shown here. Let me explain how we intend to achieve each one. With portfolio reforms, specifically the partial spin-off of the petrochemical business, the growth of semiconductor and electronic materials, we are nearing 20% EBITDA margin. We believe 20% level should be secured stably in order to grow and make necessary investments. We are committed to manage the business to sustain 20% even when the Semiconductor and Electronic Materials demand drops temporarily.

In addition to clearing the EBITDA margin target, we aim to end costly impairment loss by wrapping up the major phase of portfolio reforms to achieve JPY 500 EPS target. Finally, 10% ROIC is a target set to become a globally competitive company. We aim to achieve this by boldly concentrating resources in high profitability areas.

Page 28 is the percentage change of the Semiconductor and Electronic Materials segment. Through the business growth and exits from the non-core businesses, revenue contribution from the segment reached about 40% in 2025. We will increase the percentage to 50% or more. And through the profitability improvement of each segment, we aim to stably achieve 20% EBITDA margin. By lowering the nonrecurring losses that we incur in the process of the portfolio reforms, we will promptly realize a profit structure in which the business growth leads directly to net income and EPS growth.

Page 29 is the progress towards the partial spin-off of Crasus Chemical. Crasus Chemical is currently our wholly owned subsidiary in petrochemical business. We are steadily advancing to execute the partial spin-off and listing within 2026. These are 3 key milestones to be cleared. We'll make sure that we will clear that one by one.

Page 30 is our valuation. In 2025, Semiconductor and Electronic Materials segment reached a record high revenue and profitability and EBITDA margin exceeded 30%. Our share price rose to EV EBITDA multiple of 11x range, but we believe there's room for further upside for our share price. The slide compares us against 2 U.S. semiconductor materials manufacturer as benchmark. As shown, Semiconductor and Electronic Materials segment revenue and profitability are comparable to these companies, especially in AI and advanced semiconductors, we are proud to say that our presence exceeds competitors and our year-on-year revenue growth is much higher.

However, we are still very much undervalued in comparison. If the enterprise value of this segment is valued at par or higher than the competitors, the company-wide valuation will be much higher than the current level. In order to obtain the valuation comparable to these global peers, we will build on the profit growth of advanced areas and establish business portfolio centering on Semiconductor and Electronic Materials.

The last page, 31, is our policy on spending cash. So this page shows the capital allocation and return policy. In summary, we maintain our current policy. To continue to win in advanced semiconductors, including for AI, proactive CapEx is indispensable. Therefore, in capital application -- capital allocation rather, top priority is growth investments, followed by debt repayment and dividend payment. As for shareholder return policy, we remain committed to maintaining a consistent track record and emphasizing the total shareholder return or TSR, including the gain from higher share price.

Page 32 and onwards are appendix for your reference. Thank you very much for your attention.

Hello, everyone. I am Hideki Somemiya, CFO of Resonac Holdings Corporation. Thank you very much for your understanding and support for our company. Let me explain the financial results overview of Q3 of fiscal 2025. Page 2 is key takeaways. There are 3 things that I'd like to communicate to you. First, core operating profit in Semiconductor and Electronic Materials segment reached a record high on a quarterly basis. In Q3, products for advanced semiconductors used for AI and others were strong. In addition, there was inventory demand for smartphones and others.

Second, core operating profit increased year-on-year, driven by the strong performance of the Semiconductor and Electronic Materials segment, which more than offset the weakness in the Chemicals segment. Third, compared to fiscal 2025 forecast announced on February 13 this year, we made steady progress through Q3. Forecast numbers remain unchanged.

Now let me explain Q1 to Q3 financial results. Slide #3 shows the summary of Q1 to Q3 consolidated results comparing fiscal 2024 to '25. Q1 to Q3 revenue was JPY 986.3 billion. Semiconductor and Electronic Materials revenue grew considerably year-on-year. However, Chemical segment and Crasus Chemicals segment revenue decreased.

Overall revenue declined by JPY 43 billion year-on-year. Core operating profit was JPY 72.8 billion, up JPY 4 billion year-on-year. As for nonrecurring items, gain on sale of former headquarters land and buildings was booked the same period last year. During Q1 to Q3 this year, impairment losses on business sale and restructuring were recorded. Nonrecurring items turned negative to JPY 51.4 billion. IFRS-based operating profit was JPY 21.5 billion, down JPY 64 billion year-on-year.

Profit attributable to owners of the parent was JPY 6 billion, down JPY 58.8 billion year-on-year due to the nonrecurring items, which turned significantly negative, as mentioned earlier. EBITDA was JPY 143.9 billion, almost flat year-on-year. EBITDA margin was 14.6%, improvement of 0.8 points. Excluding Crasus Chemical, for which we are considering partial spin-off, EBITDA margin was 17.8%.

In Q3, the EBITDA margin was 18%. Excluding Crasus Chemical, it was 20.7%. So we exceeded our target of 20% or higher. Page 4 is the breakdown of core operating profit changes from JPY 68.8 billion last year to JPY 72.8 billion in Q1 to Q3 2025.

Looking at the breakdown of JPY 4 billion year-on-year increase, sales volume was JPY 7.2 billion, mostly improvement impact of semiconductor and electronic materials. Sales price pushed down the profit by JPY 19.2 billion. Sluggish graphite electrode market led to lower sales price.

Naphtha price was down year-on-year and sales price also declined in Crasus Chemicals segment. Variable and fixed costs pushed up the profit by JPY 13.8 billion, although fixed costs such as labor mainly increased in each segment and raw material costs rose, in Crasus chemical, lower naphtha price pushed up the profit.

Lastly, the others pushed up the profit by JPY 2.2 billion. This includes the Hard Disk Media business in Semiconductor and Electronic Materials segment having sold off high-cost inventory in the same period last year. Pages 5 and 6 show breakdown of segment core operating profit changes. These are for your reference.

Page 7 is results by segment. Revenue, core operating profit and EBITDA margin are shown by segment comparing fiscal 2024 and '25. Semiconductor and Electronic Materials grew 11% in revenue and 40% in profit year-on-year, driving overall results. However, revenue and profit decreased in other segments, especially in Chemicals segment, sluggish graphite electrode market led to considerable decline in revenue and the segment ended in deficit.

Page 8 is quarterly results by segment. In Semiconductor and Electronic Materials segment, in addition to the demand for smartphones, volume of products for advanced semiconductors used for AI and others steadily grew in Q3. Both revenue and core operating profit reached record highs. EBITDA margin was 31.3%. As a result, overall Q3 revenue was JPY 344.2 billion. Core operating profit was JPY 38.2 billion. EBITDA margin was 18%.

Pages 9 to 13 are segment summaries. Page 9 is the Semiconductor and Electronic Materials. Revenue grew by 11% year-on-year to JPY 365.7 billion. Core operating profit increased by JPY 21.2 billion year-on-year to JPY 74 billion. Higher revenue and profit were driven mainly by back-end semiconductor materials, whose volume grew for advanced semiconductors, mainly for AI and others and Device Solutions, where Hard Disk Media revenue rose on a demand recovery for data centers. We understand that the growth of the Hard Disk Media for data center is driven by storage demand expansion, including those based on AI. Segment EBITDA margin improved greatly from 25.5% the year before to 29.1%.

Page 10 is Mobility. Revenue decreased by 12% year-on-year to JPY 132.1 billion. Core operating profit decreased by JPY 1.9 billion year-on-year to JPY 2 billion. Lower revenue is mostly due to divestiture of secondary battery packaging materials and food packaging materials in Q1 as well as a decline in demand for some domestic customers. Both revenue and profit were down. Page 11 is Innovation Enabling Materials. Revenue decreased by 5% year-on-year to JPY 67.9 billion. Core operating profit decreased by JPY 0.7 billion to JPY 8.1 billion. Revenue and profit decreased due to lower demand for certain products impacted by sluggish automobile market.

Page 12 is Chemicals. Revenue declined by 17% year-on-year to JPY 125.9 billion. Core operating profit declined by JPY 9.2 billion to the loss of JPY 7.4 billion. Lower revenue and profit come mostly from graphite electrode business, where both sales volume and price dropped due to weak graphite electrode market conditions.

While gains from the reversal of the inventory write-downs were booked same period last year in Q1 to Q3 this year, there were valuation losses. The last segment summary, Page 13, shows Crasus Chemical. Revenue decreased 8% year-on-year to JPY 222.8 billion. Core operating profit decreased by JPY 1.8 billion to JPY 3.3 billion.

Lower naphtha prices led to lower selling prices and revenue dropped. Core operating profit decreased due to a deterioration in inventory valuation differences. The results by segment has been completed.

Page 14 is the major items below the core operating profit. On the left, we have the list of the nonrecurring items. On the right, year-on-year comparison of the financial income, cost and equity in earnings. Starting with left, nonrecurring items, this worsened by JPY 68 billion year-on-year. Because of the gains on sale of the former headquarters land and building, this was positive same period last year. In Q1 to Q3 this year, we booked impairment losses for transfer of businesses and provision for business structure improvement. This is mainly for the business transfer of Fiamm Energy Technology engaged in lead acid battery business and automotive molded parts business.

Other items during Q1 to Q3 have not changed much since the first half. Gain on business reorganization and others was JPY 6.9 billion, mainly from divestiture of secondary battery packaging materials and food packaging materials. Total of business restructuring expenses and extra retirement payments was JPY 5.3 billion, mainly from restructuring of graphite electrode business.

Moving to the right-hand side, total financial income cost improved JPY 3.8 billion year-on-year. While FX loss was recorded in the same period last year were weaker Yen during the Q1 to Q3 this year led to small FX gain. As there was negative impact of onetime cost adjustment during the same period last year, the equity in earnings increased by JPY 2.5 billion year-on-year.

Next, Page 15 shows consolidated balance sheet. Starting from the left. Total assets at the end of September this year was JPY 2,69.7 billion, down JPY 102.9 billion from the end of December last year. This is mainly due to the lower cash and cash equivalents due to the corporate bond redemption and others.

Assets held for sale increased due to the transfers from the trade receivables and inventories and others following the decision to transfer Fiamm Energy Technology and automotive molded parts business. Total liabilities were JPY 1,398.2 billion, down JPY 82.4 billion from the end of December 2024 due to the lower interest-bearing liabilities. Total equity was JPY 671.5 billion, down JPY 20.5 billion from the end of December last year.

Biggest reason behind the decline is stronger Yen up to JPY 148.4 to the dollar at the end of September, as shown in appendix, which led to JPY 13.6 billion decrease of the conventional foreign currency translation adjustment or exchange differences on translation of foreign operations under IFRS.

Major indicators are shown at the bottom. Net D/E ratio increased to 0.98x from the 0.78x at the December end. This was due to the early repayment of JPY 137.5 billion of subordinated loans, which are recognized as 50% equity by Japan Credit Rating Agency through the regular senior loans and others at the end of April.

We continue to improve our financial position, targeting a stable net debt-to-equity ratio of 1x or lower. Lastly, equity ratio attributable to owners of the parent, which corresponds to the conventional equity ratio improved slightly to 31.2% from December end. Pages 16 and onwards are appendix, and these are for your reference. That concludes my presentation. Thank you very much for your attention.