Time to start the financial results announcement. 2026 [Foreign Language] of the first quarter of 2025, ending in March 2026 for ZOZO. [Foreign Language] we will only be offering live streaming this time. [Foreign Language] We plan to have the session until 7:20 P.M. 5:20 P.M. [Foreign Language] After that, we will have a Q&A session with institutional investors on a separate Zoom channel from 5:30 P.M. [Foreign Language] Now, I'd like to introduce the presenter, Director, Executive Vice President, and CFO, Koji Yanagisawa. [Foreign Language] [Foreign Language] Hello! Now, CFO Yanagisawa will take us through the business results. [Foreign Language] Hello! [Foreign Language] I'd like to walk you through the first quarter financial results for the fiscal year ending in March 2026. [Foreign Language] The presentation document we will be using today has been uploaded already to our website's investor relations page, so please take a look. The concept for this year's financial statement is "Design that makes the people who work at the company the heroes and heroines" [Foreign Language] believing that a company's true uniqueness comes from its people. We focused on each employee's individuality, portraying them life-sized in expressive croquis-style line drawings. [Foreign Language] The cover and opening illustration will change each quarter, reflecting our desire to make the report not just about the numbers, but also about the people behind them. We hope you'll enjoy noticing these little changes and feeling more connected to the people behind the report as the year goes on. First, I'd like to explain the details of the revision of the earnings forecast announced today. [Foreign Language] This is page 33 of the handout. [Foreign Language] Regarding LIST, which has been consolidated since May 2025, we have disclosed revised performance forecasts that incorporate the effects of the consolidation of the business plans and the allocation of the acquisition costs following the progress of these procedures. Revised forecast includes the following: GNV +9.7% year-on-year at JPY 673.9 billion, GNV excluding other GNV, +13.8% year-on-year at JPY 653.7 billion, net sales +8.6% year-on-year at JPY 231.5 billion, operating profit +6.9% year-on-year at JPY 69.2 billion, and operating margin 10.6%, EBITDA +9.9% year-on-year at JPY 76.7 billion, and EBITDA margin 11.7%. [Foreign Language] Compared to the performance forecast announced on April 30, GNV and GNV excluding other GNV increased, while OP and EBITDA decreased. [Foreign Language] Next, this is page 34 of the handout. The targets for each business segment are as follows: Starting this fiscal year, we have added a new business segment to LIST, and the GNV target for the current fiscal year is JPY 50.3 billion for that. There are no changes to the forecast of other business segments from those announced on April 30. [Foreign Language] Next is the trend of dividends per share and payout ratio. [Foreign Language] There are no changes to the annual dividend announced on April 30, and we continue to plan to pay a dividend of JPY 39 per share. [Foreign Language] As a result of this, the payout ratio is expected to be 72.7%. [Foreign Language] Let's go to page 11 of the handout. [Foreign Language] This illustrates the trend in capital expenditures. With further progress made in the consolidation of LIST's business plan and in the allocation of acquisition costs, we expect an increase in expenses. We expenses. We have revised the projected figures for depreciation and goodwill amortization previously disclosed on April 30, incorporating additional information obtained following LIST's consolidation as a subsidiary. We recalculated these figures, and as a result, depreciation increased from JPY 4.72 billion to JPY 5.16 billion, while goodwill amortization decreased slightly from JPY 2.1 billion to JPY 2.05 billion. Next are the highlights of the first quarter of the fiscal year ending in March 2026. [Foreign Language] For the first quarter, [Foreign Language] GNV increased by 12.2% year-on-year to JPY 159.2 billion. GNV excluding other GNV increased by 12.4% year-on-year to JPY 149.1 billion. [Foreign Language] EBITDA increased by 8.9% year-on-year to JPY 18.5 billion. [Foreign Language] EBITDA margin was 12.5%, which is a decrease of 0.4 point compared to the same period last year. [Foreign Language] Progress against the revised company plan that I just explained is as follows: GNV excluding other GNV 22.8%, EBITDA 24.2%. [Foreign Language] Current fashion demand remains robust, and GNV is progressing largely in line with plans. When looking at it by business segments, ZOZOTOWN business is slightly below the plan, while LINE Yahoo Commerce is above the plan. [Foreign Language] As you can see, additionally, EBITDA surpassed the plan driven by factors including unrecognized promotional expenses, logistics-related costs, and shipping charges. Both GNV and EBITDA reached record highs in the first quarter. [Foreign Language] Next, I will present an overview of the key performance details. Let's go to page 9. [Foreign Language] This is the analysis of the increase and decrease of EBITDA compared to the previous year's results at the end of the first quarter. [Foreign Language] EBITDA increased by approximately JPY 1.51 billion, from JPY 17.06 billion in the previous quarter to JPY 18.57 billion in the current quarter. Factors attributable to the increase of EBITDA are the following: First, gross profit increase of JPY 3.13 billion due to higher GNV in ZOZOTOWN business and LINE Yahoo Commerce. [Foreign Language] Second, sales increase of JPY 240 million due to growth, [Foreign Language] In the advertising business, and gross profit increase due to the consolidation of LIST and others, plus JPY 1.36 billion. A decrease in variable costs due to improvements in the efficiency of the logistics centers and a decrease in the ratio of packing and shipping costs due to an increase in average order value, JPY 50 million. On the other hand, factors that reduced EBITDA are as follows, and there are three of them. First, increase in fixed costs due to an increase in the number of consolidated employees and the occurrence of one-time expenses related to M&A, minus JPY 0.77 billion. Second, increase in actual PR expenses to attract customers, promote sales, and cover LIST standalone expenses, minus JPY 1.95 billion. [Foreign Language] An increase in other expenses due to success fee paid to FA related to the M&A and others, minus JPY 0.55 billion. [Foreign Language] Let's go to page 10. This is the balance sheet. First, with respect to cash and cash deposits under current assets, payments related to the acquisition of LIST shares, payment of the year-end dividends, and disbursements of the acquisition of treasury stock buybacks have impacted the balance, resulting in a decrease of approximately JPY 55.2 billion year-on-year. [Foreign Language] Next, under non-current assets, intangible assets have increased by approximately JPY 24.9 billion compared to the previous fiscal year end, primarily due to the recognition of goodwill related to the acquisition of LIST shares. [Foreign Language] Additionally, within shareholders' equity of assets, treasury stock decreased by approximately JPY 3.8 billion, primarily due to the cancellation of the treasury stock in May and the ongoing acquisition of treasury stock. [Foreign Language] The acquisition of treasury stock is currently progressing smoothly. [Foreign Language] Moving on to page 21 of the handout, this is the breakdown of SG&A expenses. [Foreign Language] The SG&A to GNV ratio was 22.7%, a decrease of 0.7 point from the same period of last year. While GNV increased due to the consolidation of LIST, incremental SG&A expenses were zero or minimal for some items for LIST alone. This contributed to a decrease in the SG&A expense ratio. Factors that drove up the SG&A ratio are the following. There are two, mainly. First, in addition to expenses recorded for LIST alone, advertising expenses increased by 0.5 points due to an increase in web advertising spending for ZOZOTOWN. Secondly, as I mentioned, amortization of goodwill related to the acquisition of LIST led to a 0.3 point increase. [Foreign Language] On the other hand, factors contributing to the decrease in the SG&A ratio include two elements. First, the expansion of the consolidated scope, along with the improvements in operational efficiency, such as optimizing inventory levels at logistics centers and labor savings through automation, resulted in a 0.6% decrease in logistics-related labor costs. Second, the expansion of the consolidated scope and higher AOV compared to the previous period led to a 0.6% decrease in shipping costs. [Foreign Language] Next, let's go to page 24. This is the actual promotion expenses. [Foreign Language] and its trend. In the first quarter, we used 4.2% of GNV as the actual promotion expenses, which is a sum of advertising and point-related expenses that are deducted from net sales. [Foreign Language] Compared to the same period of the previous year, the actual promotion-related expenses ratio increased by 0.9% due to the following factors. [Foreign Language] There are three of them. One, increased spending on web advertising for ZOZOTOWN. Second, increased promotional expenses such as free shipping campaigns and point promotions. Third, LIST reported expenses separately, with advertising and promotion expenses accounting for a large portion of SG&A expenses. [Foreign Language] Additionally, due to the consolidation of LIST, we have revised the full-year budget and increased the actual promotion-related expenses to GNV ratio to 4.7%. [Foreign Language] Furthermore, compared to the ZOZOTOWN business, LIST tends to have a higher ratio of advertising and promotional expenses to GNV. With respect to the actual promotion expenses for the ZOZOTOWN business, excluding LIST, as explained at the beginning of the fiscal year, the ratio of GNV remains unchanged at 4.4%. As noted on the opening slide of the financial results summary, certain promotional activities were delayed in the first quarter, resulting in lower promotional spending than planned. We expect to deploy the deferred portion in the second quarter and beyond, ensuring the full-year budget is fully utilized. [Foreign Language] Next, let's go to page 25 of the handout. The following are ZOZOTOWN's KPIs, and please note that the following indicators do not include results from LINE Yahoo! Commerce, LIST, or B2B businesses. [Foreign Language] Let's look at the number of total buyers. [Foreign Language] The number of total buyers increased by 150,000 from the previous quarter to 12.36 million. [Foreign Language] Among them, the number of active members increased by 180,000 from the previous quarter to 11.58 million. The number of guest buyers decreased by 40,000 from the previous quarter of 770,000. In the first quarter, we acquired new members through a range of initiatives leveraging web advertising and ZOZOTOWN's platform. [Foreign Language] We increased our web advertising budget year over year to enhance customer acquisition. [Foreign Language] Improved targeting drove a higher return on investment compared to last year. [Foreign Language] Next, let's go to page 28 of the handout. This is the number of shops in ZOZOTOWN. At the end of the first quarter, the number of shops stood at 1,681, representing a net increase of 32 shops from the end of the previous quarter. The number of new stores opened in the first quarter was 43, including stores like Korea-based e-commerce fashion brands like AEAE and Sculptor, a Japanese home appliance brand, HADO, New York-based makeup brand MAYBELLINE New York, and more. [Foreign Language] Next, let's go to page 30 of the handout. Average retail price. With respect to average retail price, it turned out to be JPY 3,744, an increase of 1.2% compared to the same period of last year. The main factors contributing to this increase were an increase in the sales mix of spring outerwear and other items, with higher unit prices compared to the same period last year, and a decrease in the average discount rate for sales items. [Foreign Language] Additionally, price increases on new spring and summer items across various brands have leveled off and are now in line with last year. [Foreign Language] Next, page 31. This is the average order value. The average order value turned out to be JPY 8,543, up by 2.4% compared to the same period of last year. The increase in the average number of items purchased per order drove the AOV growth rate to exceed the ARP growth rate. This was primarily due to greater use of free shipping policies for orders of JPY 1,200 or more compared to the same period of last year, which led to a higher proportion of combined purchases around the policy's implementation date. [Foreign Language] That is all for the numerics. Lastly, I'd like to briefly share ZOZO's first matching service release on June 30, 2025. This is a new service that we launched. [Foreign Language] ZOZO Match [Foreign Language] It is a service that's been in the works for about three years, and it was brought to fruition through the dedicated efforts of our staff. [Foreign Language] The concept [Foreign Language] Stemmed from a hypothesis formed during the COVID period, reduced opportunities for going out and social interaction led to a contraction in the apparel market. [Foreign Language] Underscoring a close link between meeting people and fashion demand, that's when we started to consider this new service. With ZOZO Match, we aim to foster new connections, broaden motivations and opportunities for people to enjoy fashion, and ultimately help revitalize the entire fashion industry. What it means is that meeting people will lead to more fashion. [Foreign Language] The results of our survey on Gen Z's views on romance and dating apps also confirmed a correlation between romance and fashion. [Foreign Language] When asked, "Do you ever intuitively judge whether someone is a potential romantic interest based on their overall appearance, including their fashion style?" 97.5% answered yes. [Foreign Language] When asked, "Do you feel like buying more clothes when you're in a romantic relationship?" 89.9% answered yes. These results suggest a tendency to intuitively perceive a person's personality and charm through their overall style, including fashion, when meeting someone. It also indicates that many people place importance on fashion in romantic relationships and that their awareness of fashion increases when they're in a relationship. Finally, here's an overview of the ZOZO Match service. ZOZO Match is a matching app powered by ZOZO's proprietary AI, which introduces users to people who share their preferred style, drawing on data such as fashion genre diagnostics. Profiles are designed to be easily understood at a glance, using full-body photos that highlight each user's personality and style. This approach enables more intuitive connections compared to competitor services that rely more on filtering their users by specifications. When we say specs, we're talking about their academic background. Rather than focus on the specs, we focus on the style that they exude. [Foreign Language] ZOZO's proprietary AI analyzes users' preferred styles and recommends compatible matches. Of course, robust safety measures and support systems ensure a secure user experience. As a unique service connecting people through fashion, we aim to deliver a fun, safe, and high-quality matching experience. [Foreign Language] That is all. That concludes ZOZO's first quarter financial results announcement for FY25, ending in March 2026. [Foreign Language] Thank you for your time and attention.