It's now time to start the financial results announcement of ZOZO for the first quarter of FY 2022, ending in March. In order to prevent the spread of COVID-19, we would only be offering live streaming this time. We plan to have the session until 5:35 P.M. After that, from 5:50 P.M., on a separate Zoom channel, we will have a Q&A session with institutional investors. I would like to now introduce the participants. Representative Director, President, and CEO, Kotaro Sawada. Hello. Director, Executive Vice President, and CFO, Koji Yanagisawa. Hello. Director and COO, Fuminori Hirose. Hello. We have three participants today. Our CFO, Yanagisawa, will take us through the business results. Good afternoon. Now I would like to walk you through the earnings results of the first quarter of FY 2022, ending in March. This presentation document we will be using today has already been uploaded to our IR page on our website, so please take a look. I want to just quickly touch on this design of this document. As we explain on the last page of our document, our designer has written what sort of passion he had in the backdrop of this design. This designer has been working at our company for 15 years, and he wanted to communicate how we have pleasant, good people working at ZOZO, and he thinks that these good people come together to create a unique culture and network that serve as a source of power for ZOZO. He wanted to use manga as a style of expression to communicate that to you. It takes on a manga style, there's a bit of hyperbole, but hopefully you get a sense of how our staff work every day, and you also get a sense of his passion. There's going to be some parts that you can read and enjoy as manga, you can sort of try to guess who those characters are. This is the manga. I'm going to skip this page. In the first quarter of FY 2020, gross merchandise value, GMV, went up by 22.5% year-on-year, landing at JPY 116.8 billion. GMV, excluding GMV of other category or others, went up by 11.9% year-on-year, landing at JPY 106.7 billion. Operating profit was up by 20.8%, landing at JPY 12.5 billion. Operating profit margin was 11.8%, improving by 0.9 points year-on-year. Progress rate against the full-year target is, for GMV, 24.7%. For operating profit, 26.3% against the plan. It is on track. We were able to finish this quarter quite successfully. These are the quarterly changes of the business results. In the first quarter, GMV, excluding other category, was up by 11.9% year-on-year. We were particularly impacted positively by the digital shift amidst the pandemic in the first quarter last year, and therefore, our figure looks slightly lower than the same period of the previous year. Although the bar is set by the previous year's actuals in the first quarter was very high, our TV commercial worked to attract customers, and PayPay Mall did well, and we were able to sustain the growth rate of more than 10%. Regarding operating profit, on top of GMV and ad business growth contributing to the increase of gross profit, we managed to reduce logistics costs and payment collection commission fee, which worked to improve OP by 20.8% year-on-year. Next slide, please. Next. This is page 8 of the deck. Let's first look at increase/decrease analysis of the operating profit. OP was JPY 10.42 billion in the 1st quarter FY 2021. It was JPY 12.59 billion FY 2022, up by JPY 2.17 billion approximately. Factors attributable to the growth of the OP were JPY 3.13 billion from the increase of consignment shop commission due to GMV growth, JPY 600 million from the increase of sales from the advertising business, and JPY 900 million from the growth of shipping revenue and payment service revenue coming from the GMV increase. Factors that drove down the OP were, mainly, there are four reasons. Namely, JPY 750 million from the increase in fixed costs that included the increase in the number of employees and the number of logistics spaces, and also JPY 950 million from the increase in variable costs that rose in correlation to GMV growth, and JPY 720 million from the increase of promotional expenses due to active airing of TV commercial, and JPY 40 million from other expenses. Next. This is page 9 of the document. Here is the balance sheet. As a special note, there's an increase in treasury stock, and the background of this will be explained in detail in the next slide. This is page 10 of the document. This is the overview of our efforts to adapt ourselves to the Prime Market, a new trading market to be formed at Tokyo Stock Exchange in April of 2020. We are considering to shift to this new Prime Market. To meet one of the listing criteria of the Prime Market, which is to have a tradable share ratio of 35% or more, we decided to purchase treasury stocks from existing shareholders so that we can increase the ratio of tradable shares by issuing stock acquisition right. When this initiative completes, we expect to achieve more than 35% for the tradable share ratio. This is the process of the work that we have conducted. Please refer to the document for details. This is page 16 of the document. This is the quarterly changes of GMV. During the 1st quarter, Z Holdings have implemented aggressive promotions, driving up PayPay Mall GMV share by 3.8 points year-over-year. PayPay Mall is doing very well. Also, the share of the other GMV, which started to be recorded in the 2nd quarter of the previous year, amounted to 8.7% this quarter. Next slide, please. This is page 20, SG&A breakdown. SG&A against GMV for the first quarter was 22.8%, down by 0.1% year-on-year. The ratio decrease is attributed to these main reasons. With the application of the new revenue standard, point-related expenses recorded as an SG&A expense last year is now deducted from net sales instead this time. This decreased the promotion expenses by 0.5 points. In the first quarter of FY 2021, there have been some confusion in operation due to the expansion of COVID-19. The efficiency of the logistics bases improved, resulting in a 0.5 point decline of logistics-related expenses under payroll and staff costs. Payment collection fee decreased by 0.3 point due to improvement of economic conditions, which came with a change of payment collection company which worked on credit card payment. Mainly due to the change of packing materials, others decreased by 0.2 point. We changed our packing materials in the middle of the second quarter of the previous year. Factors that drove up SG&A are advertising expenses related to TV commercial, proactive measures to attract customers, and free distribution of ZOZOGLASS. This is 1.0 point. Due to the increase of overall employees, payroll costs for employees rose by 0.2 points. Same-day delivery service, which stalled last year due to the pandemic, restarted, driving up the shipping cost by 0.1 point. Next slide, please. Let's now look at OP and OPM changes. GMV growth, coupled with gross profit improvement coming from the advertising business and reduction of SG&A, contributed to a better OPM year-on-year. Next slide, please. This is page 24 of the document. These are the main KPIs of ZOZOTOWN. By the way, these KPIs hereafter do not include the results of PayPay Mall or B2B business. It's only for ZOZOTOWN. Number of total buyers was up by 250,000 from the previous quarter, amounting to 9.73 million, of which active members was 8.36 million, increasing by 230,000 against the previous quarter. Guest buyers increased by 20,000, finishing at 1.36 million. Concerning active members, the number of newly recruited active members turned out to be high because of the digital shift driven by COVID-19. Active members that we gained last year are staying with us as well. That had a positive effect. On the other hand, guest buyers was at the same level as the fourth quarter of the previous year. Next slide, please. This is page 25 of your document, number of shops on ZOZOTOWN. As of the end of the first quarter, the number of shops was 1,448 shops, net increase of 20 shops from the end of the last quarter. We had 36 shops joining our platform this quarter. To name a few, we welcomed cosmetic brands such as Dior and Guerlain, luxury brands such as Salvatore Ferragamo, influencer brands such as eim. Next slide, please. With respect to average retail price, which is on page 30 of the document, it was JPY 3,490, up by 1.4% year-on-year. Increase is attributed to the fact that the brands engaged in more aggressive discount last year than usual because of the pandemic, they did not do that as much this year. This lowered the markdown ratio. Next, please. We're on page 31. This is average order value. Our average order value was JPY 7,501, up by 1.2% year-on-year. It is mainly due to the rise of average retail price. Next slide, please. This is page 33 of the document. This is our full-year consolidated business performance forecast and estimated dividends for FY 2020. There's no change to the plan. We will sustain these numbers as our target. Thank you. That brings me to the end of my part. I'd like to pass the microphone over to Sawada, our Representative Director, President, and CEO. Hello. This is the President and CEO, Sawada from my side. I would like to give you some supplementary information for the first quarter. Next slide, please. First of all, compared to the previous year, I want to walk you through where we're at. You might remember this. For the first quarter of the previous year, we were in the middle of confusion and we were facing a predicament, but yet we were able to grow in the first quarter of the previous year. Physical shops were closed, and the brands accelerated their digital shift. It was very important for them to lower their inventory. The brands decided to conduct promotions to lower the prices and also have advanced summer sale so that they can decrease the amount of inventory by bringing the inventory to us. That was what happened in the first quarter of the previous year. These are extraordinary reasons that we had last year. For this first quarter, we believe that we were able to have healthy growth. There are mainly four reasons for this healthy result. As Yanagisawa mentioned earlier, we have been able to retain our customers. That's the first reason. Another reason is that the brands are now focusing on e-commerce and digital. As a result of this, it seems as though the brands expect even more from us. The third reason is, as it was explained by Yanagisawa, PayPay Mall shop is showing continuous growth. Lastly, ZOZOCOSME, which we launched on the 18th of March, is growing at a good pace. These are the four reasons of our healthy growth this time. About these four reasons, I would like to walk you through a more detailed explanation. Next slide, please. First of all, this is about the retainment of customers. Every time we have this financial results announcement, we have communicated that this is not a one-off growth of members. They were sticky. We created a chart, and I am afraid that we need to disclose actual numbers here. What you have on the Y-axis is those who we newly acquired as users in the previous year, and how many of them stay with us the following year. This is a cumulative, so it just adds on. What's indicated in red line is the number of newly acquired users that we gained in 2020, and how many of them converted to repeat users. We have tracked our figures for the past five years. We are in the marginal error area. Although for some years, the figure looks a little bit stronger than this year. As you can see here, even from the first quarter of this year, that the customers are staying with us. We have been able to retain those newly acquired users. We have created two charts to indicate the active digital shift of the brands. Now, on the left, you have the amount of inventory that arrives to ZOZOBASE, how much of inventory the brands are sending to us. We are comparing with the same period of previous year and the year before that. As you can see here, we have been able to gain more inventory than the previous year, so it is going up by 114%. You can see that they are sending out their inventory to us. The chart on the right indicates the advertisement sales. We call this ZOZOAD. Once again, we're comparing the first quarter of this year to the previous year of the same period and the 2 years ago. Basically, we receive sales from the brands to advertise, so that we can show their products when people search for a product. This is our advertisement business. As you can see here, you can see that the brands are now focusing more on digital and EC. They are now investing in online malls. This is one tendency we can see. One trend that we can see among the brands. I believe that this trend is here to stay. Next slide, please. This is the third point, which is the continuous growth of PayPay Mall shop. From the latter part of last year, we invested in PayPay Mall. For the first quarter of the previous year, the GMV was quite weak. This year it's shown a strong momentum. We have been able to sell more than double of what GMV we had last year. During summer, they did Summer PayPay Matsuri. The word of mouth spread. People were talking about this a lot. We are also conducting a lot of promotions in collaboration with them. They focus on discount. It tends to be one-offs, but now we see that PayPay Mall is receiving a lot of sticky customers, and they have been able to sustain momentum. We have high expectation towards PayPay Mall. Next, this is about ZOZOCOSME. When we launched ZOZOCOSME, I believe I mentioned this to you as well. What is the strength that we can exercise when handling cosmetics? We have nine million existing customers as our user base, and we will be able to approach this user base with new category of cosmetics. This was the shortcut for us in order to generate more GMV. With this in mind, we aired a lot of TV commercial. Those who are buying cosmetics, among them, 60%, roughly speaking, are purchased together with apparel items. This is what we have learned, and this is exactly what we were aiming to achieve. Apparel items and cosmetics have a good affinity. What it means is that the KPI that we have been focusing on is doing very well. Also, when you look at what is selling among cosmetics, it's not really so much of the foundations or skincare products, it's more of makeup items. I believe that this is also indicative of the fact that apparel items have a good affinity with cosmetics. For ZOZOCOSME, we are conducting proactive promotions called COSME Week. It had a good start, and ZOZOCOSME is doing quite well. For COSME, we had not only this, but also ZOZOGLASS. We were able to receive 1.11 million orders in total, and this was not a one-off event either. Even to this date, on an everyday basis, we're receiving a lot of orders. If you wear these glasses, you get to understand the color of your complexion, and that really matched with the potential want of the consumers. It's very easy for people to post this on social media, and this was exactly what we aimed to do with ZOZOGLASS. This momentum for the demand for ZOZOGLASS is not really dwindling. Once you understand and evaluate your complexion color, we get to recommend a foundation shade that matches them the most. The purchase rate of foundation items of those who measure their complexion color using glasses is actually 2x as high than the rate of those who have not used the glasses. I believe that this is on target because we were aiming to have high conversion. The number is still small, those who received the ZOZOGLASS, most of them are evaluating their complexion color using ZOZOGLASS. We want to further enhance our added value so that we can offer even more products to them based on the result. That was the case for ZOZOMAT. When we launched it first, we didn't have that many shoes that had data on ZOZOMAT. We can increase the number of products that can match with the result of the analysis, then we'll be able to increase the sales, this has been proved by ZOZOMAT already in shoes. That's exactly the strategy we have for ZOZOCOSME as well. We have another big topic for ZOZOCOSME. On the 15th of July, we were able to welcome Chanel. In June, we welcomed Dior. These are really established cosmetic brands, and we have been yearning to have these wonderful brands on our platform. We're very delighted to be able to welcome them on board. When we think of how we approach the youngsters, Chanel and Dior see the value in being on our platform. As a fashion mall, we have our strength among the young audience, and I'm sure you're well aware of this too. This is the value that we can share to these brands. They're interested in letting young people buy their products. They open their shops on our platform, and it's going on track. The youngsters are buying their products on our platform. ZOZOTOWN is not just about fashion, it's not just about apparel items, but we also sell cosmetics. We take the effort to communicate that. The fact that these two wonderful brands are on our platform right now really contribute to the awareness of ZOZOCOSME. We feel very grateful towards these two brands. These are the reasons for our healthy growth. Next slide, please. There are other topics that I would like to share with you. One is Your Brand Project. This is basically D2C influencer brand. I think these terminologies are interchangeable. We have been working on this since last year. There are influencers that do not have their own apparel brand, that do not produce clothes or fashion items. We approach those influencers. These are influencers with hundreds of thousands of followers. We approach them. The number of influencers is growing, and their brands are also growing along with them. We are trying out different things with them. One is short-term made-to-order model that we are trying out right now. During the previous announcement, I mentioned that we will focus on production. This is one of the initiatives in that field. What does short-term made-to-order model mean? We will start the production after we receive the order, and we would produce, manufacture in a very short period of time, so there will be no inventory. There aren't that many SKUs yet, but we are trying this model out right now with those SKUs, and it's going quite well. We are now focused on growing the number of SKUs and the production. We're now working with influencers' brands. Going forward, we would like to approach existing brands so that they could be interested in using this model of ours. There's also multi-size, which is our know-how, and we've been working on this for quite some time already. We shouldn't just have a small, medium, and large. We can offer a wider breadth of sizes so that it fits more to people's bodies. What we would like to do is combine the knowledge we gained through multi-size so that we can explore other ways, different ways, new ways to produce and manufacture. With this one brand, we are generating about tens of millions of sales already. I believe that this can garner attention. This is the last page. We have already released this as news. In the fall of 2023, we plan to start the operation of this new ZOZOBASE. This is in Tsukuba. It's a little bit further away from other logistic bases that we have. We decided to operate a new logistic base. By adding this on to the group of bases that we have, we'll be able to cover roughly JPY 500 billion-JPY 600 billion worth of GMV. We would introduce more automation or operation that is close to automation, and we are exploring different options of how we can go about doing that. Thank you. That is it from my side for the financial results of the first quarter. Thank you. This brings us to the end of the financial results announcement of ZOZO for the first quarter of FY 2022 ending in March. Thank you very much for your attention.