Thank you very much for attending today despite your busy schedule. Please go to page one. Today, I'll give you an overview of results for the first half of fiscal year 2022 and explain forecast for the second half and through fiscal year 2022, and progress of medium-term business plan. Please turn to page three for results for the first half of fiscal year 2022. As we announced in notice regarding revision to earnings forecast released on September 27th, consolidated gross sales and revenue of J. Front Retailing increased year-on-year. Business profit was JPY 13.6 billion. Operating profit was JPY 13.2 billion, and profit attributable to owners of parent was JPY 10.1 billion. Profit increased significantly at all levels. Gross sales were JPY 27.8 billion below April forecast. However, as a result of our efforts for further reduction in SGA, mainly at department stores, business profit was JPY 2.1 billion above April forecast. Operating profit was JPY 2.7 billion higher, and profit attributable to owners of parent was JPY 4.1 billion higher. Also, due to an increase in share of profit of investments accounted for using equity method, we increased interim dividend by JPY 1 year-on-year to JPY 15 per share as planned. Please go to page four for segment performance. Department store business made a slow start due to the lingering effects of the sixth wave of COVID-19, but started to see a marked movement in clothing, accessories, general goods, and travel goods at stores before Golden Week, consecutive holidays in May. However, from late July to early August, the rapid spread of the seventh wave of COVID-19 led to a decrease in the number of customers coming to the stores. On the other hand, spending in expensive items such as luxury products and high-priced watches was strong throughout the first half. Consequently, gross sales increased 23.2% year-over-year. On the other hand, due to effects of restructuring we've been working on since last year and flexible control of SGA, business profit turned positive at JPY 5.7 billion. Operating profit turned positive at JPY 3.8 billion despite impairment losses of Daimaru Shimonoseki Store and others. Page five shows growth rate of quarterly sales of Daimaru Matsuzakaya department stores, major stores in comparison with fiscal year 2021 and 2019. Although Umeda and Tokyo stores, which are terminal stores highly dependent on foot traffic, improved significantly year-on-year, recovery was relatively slow compared to other stores in comparison with the same period of fiscal year 2019. We recognize an urgent need for separate measures. By contrast, at Kobe Store, renovation effects steadily led to results, and sales were about the fiscal year 2019 level at the whole store. Domestic sales of Nagoya Store were about the fiscal year 2019 level, as well as Shinsaibashi and Sapporo stores with originally high inbound share. Please turn to page six. Gaisho sales continued to be strong, in particular in department stores. Credit sales at Daimaru Matsuzakaya department stores increased 20.6% year-on-year in the first half and increased 10.4% compared to fiscal year 2019, already exceeding the pre-COVID-19 level significantly. In particular, sales share of relatively young customers in their twenties to forties to total gaisho share has been increasing year by year. We promoted digitalization of touch points with customers. I think strategic reinforcement of content and services is steadily leading to concrete results. Please look at page seven for the detailed SGA. Main factors for the increase include increase of JPY 2.2 billion in reaction to transfer of fixed costs during business suspension in the last fiscal year to other operating expenses, JPY 1.1 billion from increase in proportional expenses due to sales increase, JPY 400 million from increase in bonuses, JPY 500 million from one-time investment related expenses for proactive sales floor renovation and reinforcement of systems, and JPY 500 million from increase in supplies expenses due to rising prices of utilities. SGA increased only JPY 2.1 billion in real terms, excluding the special factor of transfer of fixed costs, mainly due to JPY 2.2 billion effect of restructuring and flexible control of personnel and ad expenses. For leverage, total SGA decreased JPY 6.2 billion compared to the first half of fiscal year 2019. Page eight shows SC business. Total PARCO store sales increased as we reinforced store competitiveness through sales floor renovation of flagship stores such as Nagoya Store and Ikebukuro stores. On the other hand, effect of exclusion of NEUVE A from consolidation at the end of June last year remained in the first half. As a result, total revenue of SC business decreased 0.4%, but business profit was JPY 4 billion, up 47.2%. Operating profit was JPY 4.8 billion, which was a significant growth due to recording of JPY 700 million of subsidies related to entertainment business and others in other operating income and in reaction to transfer of fixed costs of last year. Please go to page nine for developer business. In spite of reaction to J. Front Design & Construction's large-scale construction last year, revenue increased due to increase in orders received by PARCO SPACE SYSTEMS. Business profit was JPY 1.5 billion, and operating profit was JPY 1.7 billion, partly due to closing of Dotonbori Zero Gate and partial change of lease terms. Please turn to page 10 for payment and finance business. Annual fee income increased steadily and commissions income increased due to increase in transaction volume of Daimaru Matsuzakaya department stores and external merchants. Increase in insurance agency fees also contributed. As a result, both business profit and operating profit increased significantly to JPY 1.8 billion. Page 11 shows others. Revenue decreased due to exclusion of a subsidiary, Dimple, from consolidation through partial transfer of shares. However, SGA reduced due to its exclusion from consolidation, and a mainstay, Daimaru Kogyo, improved profitability. Consequently, business profit and operating profit both increased. Consolidated statements of financial position are shown on page 12. Total assets decreased JPY 31.8 billion due to phased reduction of cash and deposits. Interest-bearing liabilities decreased JPY 37.8 billion, partly due to withdrawal of cash and deposits. Through these actions, ratio of equity attributable to owners of parent recovered to more than 30%. Page 13 shows consolidated cash flow. We secured free cash flow of JPY 18.6 billion due to increase in net cash provided by operating activities. Let me move on to forecast for the second half and full year for fiscal year 2022. Page 15, please. The number of COVID-19 cases have still been at a high level. However, notifiable surveillance of infected cases was revised. Cap on entry numbers was lifted today, and border control, which was considered strict by international standards, was relaxed sweepingly. We recognize accelerating move to push forward economic activities based on living with COVID-19. As WHO recently said, the end of COVID pandemic is in sight. I think the world is moving to a more positive direction. However, inflation is accelerating further due to rapid depreciation of the yen caused by expanding interest rate difference from Europe and the U.S., and rise in raw material costs. Therefore, we need to pay close attention to its impact on future economy and consumer spending. Page 16, please. Considering the situation for fiscal year 2022, we forecast gross sales will increase 12.6% year-on-year, and profit will increase significantly at each level. Business profit up 104.8% to JPY 24 billion. Operating profit up 150.5% to JPY 23.5 billion. Profit attributable to owners of parent up 270.2% to JPY 16 billion. Compared to April forecast, considering the situation in the first half, we revised down gross sales forecast for the full year by JPY 45 billion. However, we revised up business profit by JPY 2 billion, operating profit by JPY 2.5 billion, and profit attributable to owners of parent by JPY 4.5 billion by reflecting rough amount increase above forecast in the first half. ROE, we emphasize, will be 4.5% and ROIC 2.6%. We plan to pay year-end dividend of JPY 16 per share, up JPY 1 year-on-year, resulting in annual dividend total of interim and year-end dividend of 31 JPY, up 2 JPY year-on-year. Next, segment performance forecast. Please look at page 17 for department store business. For sales, we assume spending by affluent people in Japan will continue to be strong, partly due to renovation effects, mainly at luxury sales space. On the other hand, spending by middle class will be slower than original forecast due to declining consumer sentiment caused by accelerating inflation. We forecast inbound sales will reach JPY 12 billion level in the second half because of further relaxation of border control. Considering these factors, we forecast gross sales for the second half will increase 9.9% year-on-year, although we revised down April forecast. As for SGA, fixed cost will decrease JPY 2.3 billion in the second half, thanks to restructuring effects. On the other hand, expenses of various materials will increase due to rise in raw materials cost. We also factored in increase in investment related expenses to grow top line, such as investment for reinforcement of luxury items, which will be consistently effective. As increase in gross profit will exceed increase in SGA due to effects of sales increase achieved through these initiatives, we expect business profit and operating profit will increase significantly. Major store sales forecast is as shown on page 18. We will renovate sales floors in flagship stores to strengthen key categories such as luxury and watch categories and strengthen stores. As for terminal stores with big issues, Tokyo store will expand sales space of high-end watch categories customers visit with strong purposes. Umeda store will also expand sales space of watches and introduce Nintendo OSAKA by the end of the year to enhance ability to attract customers. Page 19 shows Daimaru Matsuzakaya Department Stores SGA analysis. For the second half, we forecast JPY 1.1 billion increase in bonuses resulting from business recovery, JPY 800 million increase in proportional expenses due to sales increase, JPY 500 million increase in ad expenses, JPY 200 million increase in supplies expenses due to rising prices of utilities, and JPY 400 million increase in expenses due to proactive investment. Page 20 shows SC business. For the second half, we forecast revenue increase of 10.9% as the exact effect of renovation underway in flagship stores such as Nagoya PARCO and improvement from relaxing of conditions for tenants. Through these initiatives, we forecast business profit will increase in the second half, but operating profit will decrease due to absence of subsidies recorded in the last fiscal year. Please go to page 21 for developer business. For the second half, J. Front Design & Construction, which will renovate hotels and department store sales floors, will increase revenue and PARCO SPACE SYSTEMS will continue to increase revenue. In total, revenue will increase, but profit will decrease both for the second half and full year due to upfront development expenses for medium-term growth. Next, please refer to page 22 for payment and finance business. The company expects an increase in both revenue and profit for the full year owing to the higher commission income from department stores and external merchants, which are expected to continue to recover their performance. This segment is expected to achieve operating income target of JPY 3 billion set in the medium-term plan ahead of schedule in the current fiscal year. Please refer to page 23 for others. Daimaru Kogyo is expected to increase both revenue and profits, but the total revenue and profits of the segment is expected to decline, factoring in the impact of deconsolidation of Dimple, which will remain until the second half. Please turn to page 24 for the consolidated statement of financial position. Interest-bearing liabilities, excluding lease liabilities, are expected to be reduced to JPY 260 billion at the end of this fiscal year and will be able to achieve the level targeted in the midterm plan one year ahead of schedule. Please refer to page 25 for cash flows. Net cash used in investing activities is estimated to increase by JPY 18.7 billion year-on-year, mainly due to enhanced investment in store renovation. Next, I will explain the progress of the medium-term business plan. Please turn to page 27. The three-year medium-term business plan that started in FY 2021 has just reached the halfway point. FY 2022, the second year of the medium-term plan, is a year to move from defense to offense, and we have pursued active investment to increase added value of real stores and accelerate digitization. In parallel, we are implementing initiatives aimed at full-fledged growth in FY 2024 and beyond, and we are aware that what we can expect for the future of our group is gradually taking shape. Today, I would like to explain the progress of major initiatives for the full revival under the current midterm plan and the regrowth in the next midterm plan and beyond. First, please turn to page 28 for the progress and the developer strategy, which is a key to transforming the business portfolio. Organizational functions of the developer business have been consolidated and centralized at PARCO for enhancement. At the same time, for further development and growth in the future, we thought it is essential to strengthen the system to enable faster response to changes in the environment with a group-wide perspective, as this business is positioned as a major segment of the group. Therefore, we decided to spin off PARCO's developer business division and establish a new company in March 2023. The new company will position seven cities of Sapporo, Tokyo, Nagoya, Osaka, Kyoto, Kobe, and Fukuoka as priority areas where we have a strong presence with department stores and PARCO, and contribute to adding value to the local areas through building development that is not limited to retail business. Please turn to page 29. We have already announced the materialization of development projects in the Shinsaibashi district of Osaka and the Sakae District of Nagoya. Now a new project in the Tenjin area in Fukuoka has finally started, further intensifying our efforts to grow our developer business. I suppose many of you know that Fukuoka City is promoting a large-scale rebuilding project called Tenjin Big Bang in the Tenjin area. The group operates Fukuoka PARCO and Hakata Daimaru in the Tenjin area. With the Tenjin Big Bang as an opportunity, we are considering and promoting large-scale development projects. The strength of the developer business of a group is its ability to aggregate the content editing capabilities of department stores and PARCO to the group level and create synergies. We believe this will make it possible to develop unique commercial facilities that create new value, which cannot be found in the Daimaru Matsuzakaya or PARCO. With this in mind, we hope to achieve medium to long-term growth with the local community as a unique developer business. Next, I'll explain the progress of the transformation of department stores through digitization that hold the key to a full recovery. Please refer to page 30. The group lost as much as JPY 370 billion in sales in the first year of the pandemic. Of that amount, department stores lost JPY 250 billion, or more than JPY 50 billion in gross profit only in that one year. One of the reasons for this was that most of our touchpoints with customers were real stores. In other words, an important theme of the department store transformation is to digitize the customer touchpoints, and we assume the results of these efforts have been steadily accumulating. The department store sales via app in the past one year totaled JPY 201 billion, and its percentage has risen to 32.8% of the total department store sales. The number of active app users has been steadily increasing, as shown in the graph, to exceed 1.5 million in the first half. Please turn to page 31. By digitizing touchpoints, the granularity of the data obtained becomes much higher than in the past. We are starting to see a number of cases that utilization of logistic regression analysis helps us to discover new customers, especially for products such as luxury watches, other luxury items, and art. This is one of the tangible results that reinforce our belief that department stores will certainly evolve through digitization. For data utilization, we are also seeing specific synergies through the use of data from JCDP, our customer data platform, which we have been preparing for. Please refer to page 32. As you know, our group operates Daimaru Shinsaibashi store and Shinsaibashi PARCO that are located next to each other in Shinsaibashi area. We analyze the customers of these two stores using JCDP. As shown on the slide, we compared customers who only shop at either Daimaru or PARCO and the customers who shop at both stores and found the difference of the average spend per customer between the two groups was more than twice. If we can create a system or attractiveness that encourages customers to visit both stores more often, we can increase the average spend per customer that will lead to sales growth and further synergies as a group. Next, please turn to page 33. It is our major strength to have real stores in major cities throughout Japan. However, it is obvious that we cannot survive in the future if we just rely on such a hardware and asset-oriented approach. It is a great advantage of our group that we expand our strength and create value that only we can offer. In other words, we can deploy our strengths with real stores and not in the individual stores, but in the network of stores, and pursue further expansion possibilities through the progress of a developer strategy. What is required to amplify the strength in the real stores is how to integrate digital technology into it. Therefore, we want to accelerate so-called offensive digital in promoting our unique developer strategy. One of the areas that we focus on is the metaverse. The metaverse market is estimated to be worth JPY 1,600 trillion globally by 2030. It is still in its infancy at this stage in terms of creating business opportunities, but we are beginning to see ways to engage with metaverse that leverage the strengths of our group. As one example, in the area of real metaverse, we believe we can realize new experience value through the creation of spaces unique to our group by making the best use of our real department and PARCO stores while fusing the real and digital worlds. This is an example of a virtual aquarium performed in the arcade in front of Daimaru Sapporo store, and some of you are watching the video on the web now. In order to realize such a vision, our large store network in urban areas is a major advantage. In particular, in the seven priority business areas mentioned earlier in the developer business, we intend to create new value through the use of digital technology that will contribute to making the city more attractive. In addition, the department stores are also conducting trials with several approaches, such as opening New York store on metaverse for a limited time only. In PARCO, we offer a shopping environment that combines in-store event and metaverse. If it becomes possible to create new spaces and customers beyond the constraints of time and place through the use of metaverse and Web3, where customers gather from both real and virtual worlds in search of new value and form new communities, we believe it will lead to a retail model innovation, including department stores and PARCO. Please turn to page 35. In order to strongly promote these activities, it is also essential to develop digital human resources. We will systematically develop human resources who will contribute to customer data-driven management and business model transformation while raising the level of digital literacy across the company, fostering a culture of data and digital utilization. metaverse, Web3, and NFT are areas still need more research, and needless to say, these fields are evolving quite rapidly. We are determined to pursue new possibilities for the future in real-time so that we will never fall behind the times. In addition, the company has started to materialize CVC to strengthen the R&D function to drive business portfolio transformation. Please refer to page 36. Since the group's core business is retailing, we do not have an organization in charge of R&D or research and development, as is the case in the manufacturing industry, and we cannot deny that our efforts have been insufficient to innovate existing businesses and create new businesses. To this end, the group has decided to establish a CVC fund to strengthen its exploration function for the future, which will lead to innovation and growth of the group. Through investment in CVC fund, we expect to link the innovative business models and technologies of start-up companies to the transformation and innovation of existing businesses and the creation of new businesses. Please refer to page 37. We are seriously considering areas for investment, including digital, which is indispensable for business model innovation, and especially metaverse and Web 3 with future commercialization in mind. We'll accelerate our preparations to create a new future through R&D. At the same time, we'll actively involve young people who will take a central role in the next generation, which will lead to the building of new networks with external parties, and will develop human resources through real business which cannot be experienced in our company. By 2030, we hope to create a vibrant culture with participation of 4,800 employees. That is more than half of our workforce. We are preparing to hold an ESG presentation on November 30th with a main theme of human capital, and we plan to have young leaders who promote these CVC activities to speak at the event. Next, please refer to page 38 for the progress of management restructuring. We are making steady progress in reducing fixed costs to lower the break-even point, and expect to reduce fixed costs by JPY 5.3 billion for the full year, exceeding the initial plan. As such, in this three-year midterm plan, we are determined to achieve our target of reducing fixed costs by JPY 10 billion or more in order to lower the break-even point. This does not mean the management restructuring will be completed in the next three years. In the next medium-term plan, we schedule the full-scale introduction of a new common accounting system, and this is the beginning of a new phase of management restructuring. We plan to further promote highly efficient management through a fundamental review of business processes in the back office. Please refer to page 39. Last but not least, as you know, the holding company's office moved from Nihonbashi to Shinagawa on August 29th of this year. Considering the establishment of remote work due to work style reforms, we review the way we work at office and have substantially downsized our office space. It will certainly make a reasonable contribution to the reduction of fixed costs as one of the structural reforms. However, that is not our original goal. I took the opportunity of this office relocation to set up my desk on the same floor as the employees. The group is at a major turning point. In September 2007, Daimaru and Matsuzakaya merged, and in March 2020, PARCO became a wholly-owned subsidiary of the company. We added a new culture created by PARCO to the group that differs from that of department stores, and we also expanded external recruitment of specialists as well as actively promoted young people. We believe that these efforts have made great progress in diversity, and the ground is now set for linking heterogeneous human resources in a full scale. However, what is required to truly make the most of diversity is inclusion. Even if we have a diverse group of people, if they are looking in different directions, they cannot be a great force. If the vectors are not aligned, the forces will only diffuse. In that sense, I want to talk directly with employees as much as possible and repeatedly communicate the direction the group is heading for and its enthusiasm for change. I'll take the lead in changing the mindset and approach to work so that we'll be able to change the way we work as well as the quality of output itself. The only positive thing about the prolonged COVID is that it has made us determined to be steadfast in our commitment to change. Since the beginning of the term, I have repeatedly said that we are changing gears from defense to offense, but it goes without saying, a drastic offense is only possible with a reliable defense. While maintaining a solid defense position through continuous management reforms, we'll continue to take an unwavering offensive attitude that unifies the group and takes us to tangible future results. Thank you. This is Takahashi from Mizuho Securities. Thank you very much for the detailed explanation. I have two major points to address. The second point slightly branches out, so I'll ask about two things. I think it would be better to ask the first question to President Sawada. For department store business, sales for the first half were below forecast, and forecast for the second half was revised down. President Yoshimoto explained impacts of external environment were significant. I want to confirm whether my understanding is correct. There are other department store companies which exceeded their plan, although it depends on how to plan. Please give me a supplementary explanation about where you see deviations from original forecast and whether there are issues in internal factors. That is my first question? Let's answer one by one. Mr. Sawada, please. Regarding downward revision of sales forecast, I think external environmental factors due to the sixth and the seventh waves of COVID-19 were very significant, which pushed down sales by JPY 8.4 billion or JPY 8.5 billion. As to the point whether there were no other issues, I'll summarize where things didn't go as planned. For the online department store web or e-commerce, the structure had been very weak, and we launched it on a new platform in March. That was to be our starting point for real growth. However, after the new launch, sales didn't grow as much as we had expected. Similarly, sales for [inaudible] site, DEPACO, were slightly below original forecast, although the difference was not so big. We found what we launched newly would not lead to sales increase easily and quickly. However, as we saw an improvement according to our expectation around August and September, so I don't think the downside for the full year will be so significant. Although there was a slight downside in the first half, I'd like to add we generated steady sales and achieved significant results in the areas in which we invested as we targeted. That's all. Thank you very much. I suppose you have more cautious view of the situation for the second half than your original expectation. Did you simply make rather conservative forecasts because of uncertainty over the future, or are you really feeling slight changes as a top management? Considering how long the seventh wave of COVID-19 will last, I think we can forecast stronger sales. However, the sales were slightly below forecast in the first half. We made rather conservative forecast, as you said. Let me slightly add to that. Page 18 shows full year sales forecast by store. As for department stores, I'm sure Umeda and Tokyo stores pose issues for us. As you see in the fourth quarter forecast, these two stores will not fully recover. That's why we have a cautious view. I understand very well. Thank you very much. Secondly, I don't know whether it is okay to mix two questions into one. In your presentation today, you said you will separate developer business from PARCO and strengthen initiatives in priority cities. In addition, you will make sure to invest in CVC fund, although it is not directly related to the subject. In other words, I think you are looking ahead to the growth beyond the next medium-term plan. I am sorry this question seems to branch out. Firstly, what kind of strengths should we expect from the combination of PARCO's know-how and original know-how of Daimaru Matsuzakaya Department Stores in developer business? I know very well you already have a track record, but would you make it clear once again? On a similar note, I think incubation capabilities of the entire J. Front Retailing Group are very important when you invest in the CVC fund. How do you think you will be able to use those capabilities? The reason why I said this question branches out is because I wanted to ask Mr. Wakabayashi about how to manage these areas as CFO. It may be possible to invest in development business or CVC as much as you like without setting upper limit. But what kind of financial caps you will look at as CFO? I would appreciate if you could share your idea on that. I'll answer first. On page 28, there are three circles in which it says ensure proper business management, ensure proper decision-making, and ensure proper organization and personnel. These are main targets of establishing developer business. six months ago, we newly established three divisions, including CRE Planning Division, Business Portfolio Transformation Promotion Division, and Group Digital Unit in a holding company. PARCO members are serving as executive officers in all of the divisions and have been promoting initiatives in these areas for six months. For developer, Executive Officer Mr. Hirai joined CRE Planning Division. We brought all the real estate business together at PARCO so far. Many members of department stores were transferred to PARCO. Members of PARCO took the initiative, and the group worked as one. We also made sure to build pipeline for the future. However, for further acceleration, we thought we should take another step and go into the next stage toward these three goals. In light of ensuring proper business management, investment amount will inevitably be significant to grow developer business. As Mr. Wakabayashi discusses later, the entire group needs to prepare for this risk. Besides, rather than having two business divisions with very different business characteristics in PARCO and managing these two, I thought it would definitely be more positive for the future to make sure to work on one business under a management system, and would also speed up the process that is about ensuring proper business management. Secondly, regarding ensuring proper decision-making, one of the goals is to speed up decision-making as a business placed near the holding company. The other thing is developer business is now located within PARCO and is responsible for the entire group. If developer business is to have a presence in these seven areas in the future, it will evolve by incorporating not only hardware, but also concepts and technologies for Web3, as stated at the bottom of page 28. The developer committee is currently working on this with the participation and people from the group system unit and the Group Digital Unit. We thought it would be best to work on the seven business areas in a neutral position when making decisions, including such aspects of software. Regarding the last point of ensuring proper organization and personnel, we want to establish a competitive personnel and salary system in this business appropriate for developer business to acquire human resources from the outside. We will also retain and develop internal human resources. Based on this idea, we decided to reorganize developer business in March next year. In that sense, we have come to this point six months after establishing CRE Planning Division. CVC is led by Business Portfolio Transformation Promotion Division. For culture and human resource development for our entire group, I think it is very important to think about and work on new businesses more proactively. In other words, to raise the heat level. For three directions, we set a target of raising the heat of the community, raising the heat with contents, and raising the heat with thoughts and passion of our employees, and just trying to work on various things. Regarding CVC, on page 37, it says approximately 4,800 employees are expected to participate. CVC is, of course, a voluntary partnership and will receive support also from the outside. In a sense, we aim at return on investment, but there are two main purposes, including the primary purpose of strategic return and development of human resources and evolution of a corporate culture of invention. 4,800, and not a rough figure. Specifically, about half of the total number of employees. During the past six months, we had very elaborate discussions with various CVCs and startup companies and would like to create various opportunities for them. Firstly, we want to gather about 50 people in the form of a meetup event and create opportunities for dialogue between CVCs, partners, those from startup companies and our group employees about five times a year. If we do this for about eight years, approximately 2,000 people will participate. Currently, four members are involved in the CVC. We are considering a scene where these four members will mainly exchange business ideas by using a chat room. This will lead to opportunities for direct communications with about 300 people per year. As a result, we will select members who we think can continue activities toward the future and collaborate with them in trainings and awards. Eventually, we will second five or six people a year to startup companies or venture capitals. We want to try such initiatives with participation of 4,800 employees. I think it's quite an aggressive approach. However, we have included young members who feel hopeful for the future in the process so far. We continue to form a caravan with group companies under the initiative of these members and advance the process through discussions. Our primary objective is to develop human resources and reform corporate culture. That's all. Mr. Wakabayashi, please. Thank you very much for your question, Mr. Takahashi. I recognize your question was about our approach to investment in developer business and CVC. In order for our group to achieve renewed growth in fiscal year 2024 and after, and to aim at dramatic growth towards fiscal year 2030, I think our group needs to achieve profitable growth. In conventional retail businesses, centering around department store or shopping center businesses, we consider how to grow sales. Unfortunately, when it is difficult to increase top line, we make sure to control expenses to secure profit. I think it was a story or scenario. We'll transform portfolio. Specifically, if we place developer business at the center, large upfront investment will be necessary due to the nature of this business. We often hear from experts in the group that it takes about seven-eight years from planning by a developer to specific profit contribution. To promote this process, I think it is necessary to prepare multiple scenarios or plans to ensure return on investment. As for management indicators, we focus on ROIC and ROIC by business. Although there are slight differences between a developer and a CVC, they are the same from the viewpoint of the necessity of large upfront investment. To make more and more investment is not enough. I think it is important to see return on investment will increase in some years. We will need to take on significant financial challenges and establish a system to ensure support operating companies. That's all from me. Thank you very much for the details. I got a clear picture. Thank you very much. I have two questions. My first question is about PARCO. The gross sales for the first half did not achieve the forecast. Although the amount of decrease in the second half is expected to be smaller, it seems the revision from the original forecast is quite large considering the scale of the business. I heard that other companies engaged in commercial facilities business, for instance, Toshin Development, recorded higher sales than the forecast, although their target customers are different from yours. Originally, you explained this is mainly because of delayed re-renovation, but I'd like to know if that is the only reason the second half is estimated to have a smaller decrease, but I expect better performance actually. I'd like to ask Mr. Makiyama to elaborate a little more on difficult points at PARCO and measures for recovery in the future. My second question goes to Mr. Yoshimoto. You explained about human capital and establishment of CVC and other measures in the previous ESG presentation, but it seems the enthusiasm among frontline employees is less than yours considering inactive application and utilization of these measures. You mentioned plans like participation of 4,800 employees, and I took it as a message for internal people. Do you think everyone from the president to the frontline employees can be aligned to the same direction? Thank you for your question, Mr. Tsuda. First, about the point that sales at the stores did not achieve the forecast in the first half, this is because we did drastic renovations that exceeded the scale we originally planned. As a result, we needed to close stores during renovations, and that affected the sales. COVID was not the only reason, and we were affected a little in July, August, September as well, and the lower number of visitors led to stagnant sales. I think that was the major reason. Now we are seeing a steady effect of the renovation in spring, and toward the second half, we consider the result explained today is the bottom. In any case, we'll establish a firm plan to ensure that stores will achieve the midterm plan goal in 2023. That is to achieve over JPY 10 billion in operating profit, even with the impact of renovations in this second half, that we will execute by moving forward renovations originally planned for FY 2023. Did I answer your question? You mean you'll do what you can do in this fiscal year for FY 2023, including what was originally planned for the next fiscal year, regardless of the original budget? That is right. Corporate bankruptcies have been fewer than we had expected, and companies with eased conditions are now steadily returning to normal conditions. Now we have a clear outlook to secure rental revenue. We intend to create a system where we can exceed the standard of sales and generate profits even with a negative impact of easing of conditions. I assume there was about JPY 2.5 billion impact in the previous fiscal year due to easing of conditions. Can I assume the amount will be halved in this fiscal year and totally eliminated in FY 2023? Yes. It depends on the definition of the scope of easing of conditions. In FY 2021, a total amount of easing of conditions was about JPY 2.9 billion. This is because we lower the standard of sales for easing of conditions. Now, operating hours are still shorter, but the number of operating days is not restricted. As a result, JPY 900 million out of JPY 2.9 billion was brought back in the first half. This is more than half of the target of JPY 1.5 billion for the reduction of the easing of conditions in this fiscal year. About JPY 500 million impact from easing of conditions will remain in FY 2022, and the amount will not become zero in FY 2023, and we will be probably forced to set easing of conditions of about JPY 200 million based on the initial calculation. Instead, we plan that the sales of the new replaced stores will be more than JPY 200 million. I understand. Thank you. This is Yoshimoto. Let me answer your second question. In the PowerPoint presentation, I have included the number of people as a sense of target on page 35 for the development of digital human resources and on page 37 for the promotion of human capital management via CVC. Of course, they are strongly motivated by my own will, but as I mentioned earlier, we established new organizations in the spring and started activities. They are the Group Digital Unit and the Business Portfolio Transformation Promotion Division. They will probably have to be more integrated in the future, but if you look at this as a culmination of the past six months' efforts, there are certain progress. This is not based only on my personal feeling, but for instance, about the development of digital human resources on page 35, we have already started our activities to secure 100 people in FY 2024. Mr. Hayashi assumed the role of executive officer, and with people hired from outside the company, he has started a considerably internalized program to develop data analysts and the digital designers as digital core resources. The curriculum for data analysts and digital designers is almost finalized, and last week, we invited participants for the curriculum about digital orientation, and we quickly received about 100 applications. Of course, their active participation is partly owing to the fact it is remotely held, but I believe the enthusiasm among employees to acquire such knowledge is growing more than I expect. With this as a starting point, 1,000 people in FY 2030 is not just cover very basic part. Rather, this is an image of core digital human resources can be utilized quite strategically. 1,000 is over 10% of our employees. Even though I don't expect the current common sense will remain applicable in the future, but I am certain that we can become a digital company. I understand the operating companies are implementing various initiatives. Earlier mentioned, Business Portfolio Transformation Promotion Division implements CVC, and four members work hard to make this take root, and the employees of our group are engaged in these activities with truly high enthusiasm. It is my role to make this happen. As I said in my last message, the COVID pandemic has given us a great sense of urgency and an opportunity for a great change, and I am determined to execute this plan. Thank you. I assume it is impossible to be 100% successful, especially for CVC, but your idea is taking on a challenge and volunteering to participate are more important than fearing failure. Can I assume employees understand that this will be recognized in the appraisal and your message is well understood? I want to believe that is the case. Since 2017, we have been working under the vision of create and bring to life new happiness and set the JFR way with a motto, "Take on challenges without fear of failure." We have not able to reach that point yet, but now that the entire group has become more aware of the crisis as a result of the pandemic and is creating a movement to raise the level of enthusiasm for the future, we are determined to carry out these initiatives. I am clear. Thank you. This is Kanamori from SMBC Nikko Securities. I have two questions about numbers. According to page eight showing SC business profit was down JPY 400 million QOQ from the first to the second quarter, although revenue was up QOQ. Let me confirm changes in cost. When I look at operating costs and SGA of PARCO in the data book, utilities included in operating costs increased very significantly QOQ. I think it may be the reason. However, I suppose utilities expenses can be partially offset by revenue as common area charge. Please tell me whether it is not the case. Secondly, also based on that, I understand business profit forecast for the second half is kept unchanged. However, different movements were shown in each area in the first half. Firstly, SC business was below forecast in the first half. If it was due to utilities expenses and others, please tell me whether there is a risk the trend will continue to be slightly weaker than planned. In addition, developer business and finance business exceeded forecast in the first half. Please tell me whether this upside is not temporary and the trend may continue in the second half. Thank you very much for your question, Ms. Kanamori. This is Makiyama. As you said, utilities or electricity charges exceeded budget by about JPY 300 million in the first half. The JPY 300 million is for the so-called common area, though electricity costs are paid by the tenants. So far, we increased cost efficiency significantly by changing power supply companies. However, some new power companies went out of business recently. Then we needed to switch again to conventional power supply companies. As I said, there is limitation to power supply. We prioritized securing electric power. In that sense, we needed to accept their suggested electricity prices. There may be further price hikes in the second half. We still expect that the half of the electricity charge for the common area alone will increase by about JPY 200 million in the second half. We will make efforts to recover the JPY 200 million in the entire business. To secure business profit for the second half, of course, firstly, we will increase store sales. To improve efficiency, we intend to use our ingenuity for outsourcing expenses to recover the additional electricity charges. Ms. Kanamori, is it okay to move on to the second question? Let me ask a follow-up question. Is it okay to think increasing electricity cost was larger in the second quarter than the first quarter? Did it start in the second quarter? No, it started in the first quarter, not the second quarter. I understand. Does that mean there are also other factors for the cost increase from the first to the second quarter? That's correct. I understand. I would appreciate if you could tell me about the factors at some other time. Let me add explanation slightly. We don't know to what level utilities expenses will increase in the second half as in the first half. In department stores, mainly Daimaru and Matsuzakaya, as we have a total and comprehensive approach with major electric power companies, the impact was not so significant. However, it is true PARCO was significantly impacted. There are many difficulties in forecasting the second half. In September and early October, I think both department stores and PARCO made a relatively smooth start. Immigration restrictions were eased significantly today, and there have been lots of media reports. As I said earlier, not only inbound, but also Tokyo Store and Umeda Store sales have been slackish. I'm sure sales of Tokyo Store will increase as domestic travel increases. I see sales for Tokyo Store picked up in late September toward October. Sales to business travelers may not change so much, but sales to tourists are quite significant at Tokyo Store. Therefore, as I mentioned earlier, as we have very cautious views this time, upside will be freely possible. However, as I said earlier, difficulties can also be expected in the second half in light of utilities expenses, high prices, and cost control. For department store and PARCO businesses, we want to expect upside. However, as there are high risks, we kept April forecast for the second half unchanged and made a full year forecast. I think there are some upside factors. We want to achieve upside in offline. As I said earlier, we'll make sure to achieve results of the efforts we made so far. As for developer business and payment and finance business, as there are special factors in the second half, I don't think there will be big upside in this situation. For payment and finance business, there is a slight gap between the first and the second half. The gap is due to slightly higher SGA for the future in the second half for more offensive measures. I think such measures will be necessary to increase the number of customers. We want to work on such measures by monitoring the situation accordingly, as there may be more upside in some areas. Overall, we target JPY 40.3 billion of operating profit in the next fiscal year, considering operating profit of JPY 23.5 billion and business profit of JPY 24 billion forecasted. For this fiscal year as benchmark, we will work out the details of how to achieve JPY 40.3 billion, including growth of inbound and gaisho sales in Japan, and how to offset impacts of rent reduction and exclusion of PARCO. Did I answer your question? Yes, I'm fine. Thank you very much. This is Yamaoka from Nomura Securities. I have one question to follow up the last point you just mentioned. About the midterm plan, from the outsider's point of view, it seems you need to make a big jump to exceed JPY 40 billion to achieve JPY 40.3 billion. Of course, this will depend on how the current fiscal year turns out, though. I want to know what is the impression of the management about the probability of achieving the midterm plan in the next fiscal year? For instance, do you feel you have a better chance after this first half, or do you think there is still much to be done compared to the impression in the beginning of this fiscal year? I appreciate if you elaborate on this. Thank you. I understand well about what Mr. Yamaoka want to say. I myself feel what matters is the department store business and the shopping center business. I have been closely communicating to presidents of the companies participating today. This will be based on certain assumptions and conditions, but we will stick to the goal of JPY 40.3 billion, and I want to firmly reiterate what the entire group is working on. Looking to the future, I know there is an opinion that it would be quite difficult to achieve the goal by only looking at the current figures, but our intention is to closely look at each store. We provide explanation about each department store on the PowerPoint slides, and if we can clearly draw a path for the future for Tokyo and Umeda stores respectively, then perhaps we can achieve the initial financial goals set by the department store business. Having said that, it is true that some uncertainties remain for the recovery of overseas customers and the recovery of both stores. Still, it is also true that there are many stores that are making strong recovery. PARCO is just as discussed earlier. Although some of the larger stores may be struggling to achieve the initial target figures, stores like Shibuya, Shinsaibashi, Urawa are expected to perform better than the initial plan, so we expect their positive results will help us achieve the overall goal. We are also working on cost reductions through structural reforms, but our primary focus is to grow the top line, so we hope you will continue to see our business with this understanding for the future. I am very clear. Thank you very much.