I will now explain the fiscal 2025 results and fiscal 2026 earnings outlook. First, regarding key points from the earnings announcement, fiscal 2025 adjusted operating income was JPY 25.8 billion, down JPY 1.8 billion year-on-year. In Healthcare, adjusted operating income increased due to growth in the number of rented home healthcare devices and licensing income from pharmaceuticals. Fibers & Products performed steadily. In Materials, however, adjusted operating income declined due to a large-scale periodic maintenance at Teijin Aramid operations, as well as a deterioration in the sales mix for Aramid and carbon fibers. Please note that the aramid paper business has been decided for divestiture and has therefore been excluded from adjusted operating income. Below the adjusted operating income line in non-recurring items, impairment losses were recorded in Healthcare related to diabetes treatment sales rights and other fixed assets. Annual dividends have been determined at JPY 50 per share, unchanged from the previous announcement. Regarding the fiscal 2026 outlook, we forecast adjusted operating income of JPY 30 billion, up JPY 4.2 billion year-on-year. Fibers & Products are expected to remain solid, and integration with Asahi Kasei Advance is scheduled for October 1, contributing to profit growth. In Healthcare, although amortization expenses will decline following impairment losses recorded in fiscal 2025, we expect lower profits due to streamlining of the pharmaceutical business. In Aramid, the large-scale periodic maintenance that occurred in fiscal 2025 will not recur in fiscal 2026, and we expect profit growth driven by improved operating rates and progress in carbon fiber structural reforms. We plan annual dividends of JPY 50 per share. I will explain fiscal 2025 results in more detail. Revenue was JPY 873.2 billion, down JPY 132.3 billion year-on-year. Adjusted operating income was JPY 25.8 billion, down JPY 1.8 billion year-on-year. Other items were JPY -14.7 billion, deteriorating by JPY 11.3 billion year-on-year, mainly due to reversals of deferred tax assets. As a result, profit attributable to owners of parent was JPY -88 billion. As announced in our revised forecast on March 31, we guided net profit between JPY -85 billion and JPY -95 billion, and actual results came within that range. ROIC was 2.6%. Looking at the overall summary, revenue declined by JPY 132.3 billion in total. The main factor was Materials, where revenue fell JPY 120.7 billion year-on-year to JPY 338.6 billion, primarily due to the divestiture of the North American composites business on July 1, 2025. Revenue also declined due to the sale of Teijin Nakashima Medical. Adjusted operating income was JPY 25.8 billion, down JPY 1.8 billion year-on-year. I will explain the details by segment shortly. Starting with materials, adjusted operating income declined from JPY 6 billion in fiscal 2024 to JPY 100 million, with a decrease of JPY 5.9 billion. Regarding volume effects, as mentioned earlier, fiscal 2025 included a large-scale periodic maintenance in Aramid. Of the JPY 9 billion negative volume impact, operating rate deterioration accounted for JPY -8.5 billion. Spread effects were JPY - 7.5 billion due to deterioration in the sales mix for Aramid and carbon fibers. Positive factors included cost structure reforms, lower depreciation and amortization expenses following impairments recognized for Aramid in the second quarter, and profit contributions from the North American business divestiture. Adjusted operating income came to +JPY 100 million. Fibers & Products performed steadily overall. There were some fluctuations due to front-loaded shipments and weakness in industrial materials, while headquarters expenses also increased. As a result, adjusted operating income declined slightly from JPY 17.8 billion- JPY 17.1 billion. Next is Healthcare. In Healthcare, volume effects contributed +JPY 1.5 billion due to strong performance in CPAP and Veno. In addition, reduced fixed costs, lower amortization following impairment losses on type 2 diabetes products recorded in fiscal 2024, and pharmaceutical licensing income contributed to higher earnings. As a result, adjusted operating income increased by JPY 7.7 billion year-on-year from JPY 5.7 billion- JPY 13.4 billion. In Others business, separators and membranes performed steadily. As mentioned earlier, the divestiture of the aramid paper group company has been decided, and the business has therefore been excluded from adjusted operating income. This became a factor behind lower profits, resulting in adjusted operating income declining from JPY 7.1 billion- JPY 4.6 billion, down JPY 2.5 billion year-on-year. Next, I will explain financial income and expenses and non-recurring items. Regarding financial income and expenses, interest expenses improved by JPY 3.6 billion from JPY -10.4 billion to JPY -6.8 billion due to progress in repayment of interest-bearing debt. As for non-recurring items, impairment losses totaled JPY -88.9 billion in fiscal 2025, including impairments related to Aramid, healthcare, and carbon fibers businesses. In fiscal 2024, impairment losses for the North American composites business and Type 2 diabetes products totaled JPY -95.2 billion. As a result, non-recurring items were JPY -93.8 billion versus JPY -94.7 billion in the prior year, effectively flat year-on-year. Next is financial position. Total assets as of March 2026 were JPY 920.1 billion, down significantly due to the sale of the North American composites business and impairment of fixed assets. Interest-bearing debt also declined from JPY 387.1 billion- JPY 336.4 billion, down JPY 50.7 billion as repayments progressed. As a result, the adjusted D/E ratio remained stable at 0.78 versus 0.77 previously, and we believe a certain level of financial soundness has been maintained. Regarding cash flow, fiscal 2024 saw a substantial positive free cash flow of JPY 122.4 billion due to the sale of Infocom. There was no similar gain in fiscal 2025, working capital reductions contributed to an increase in operating cash flow to JPY 98.7 billion, resulting in positive free cash flow of approximately JPY 60 billion. Next, I'll explain the fiscal 2026 outlook. First, I would like to explain changes to our disclosure segments. The former Fibers & Products segment has been renamed Apparel & Industries. The former Healthcare segment has been renamed Healthcare & Life Solutions. The former Materials and Other segments have been partially reorganized. Resins from the former Materials segment and battery materials and membranes for Other have been integrated into a new segment called Electronics & Energy. Meanwhile, aramid and carbon fibers, including composites, previously under Materials, have been grouped into Specialty Materials. Other businesses now mainly consist of regenerative medicine and implantable medical devices. Let me explain the full-year outlook. Please note that this forecast does not factor in the Middle East situation. Revenue is expected to decline by JPY 23.2 billion year-on-year, while adjusted operating income is forecast at JPY 30 billion, up JPY 4.2 billion year-on-year. As mentioned earlier, gains from the aramid paper divestiture were delayed until April 2026 and are therefore included in fiscal 2026 results. Profit attributable to owners of parent is expected to reach JPY 45 billion. ROE is forecast at 12%, ROIC at 3%, and the adjusted D/E ratio is expected to improve further to 0.7. Annual dividends are planned at JPY 50 per share. Regarding the Middle East situation, certain impacts are expected on raw material and fuel prices and procurement. We intend to minimize the impact through agile responses. We will first seek to absorb increases through internal efforts. Any costs beyond that will be passed on to selling prices to minimize the impact. There are currently no significant impacts, but considering procurement uncertainty, we will focus on securing inventories. We also plan to flexibly adjust production plans in response to customer conditions. For the full-year outlook, revenue is projected at JPY 850 billion. Apparel & Industries is expected to achieve revenue growth due to integration effects with Asahi Kasei Advance. On the other hand, Specialty Materials is expected to see lower revenue because the North American composites business contributed through June fiscal 2025. Adjusted operating income is expected to total JPY 30 billion, up JPY 4.2 billion year-on-year. I will explain details by business on the following pages. Starting with Apparel & Industries, both apparel fibers and industrial materials are expected to remain solid. The management integration with Asahi Kasei Advance is expected to contribute gradually from the second half onward. Although some integration-related promotional expenses will increase, adjusted operating income is expected to rise from JPY 17.1 billion- JPY 19 billion. Next is Healthcare & Life Solutions. Volume growth is expected from CPAP and rare disease-related businesses. However, streamlining of the pharmaceutical business, including lower volumes and the impact of NHI drug price revisions, is expected to negatively impact earnings by approximately JPY 7 billion. Although amortization expenses will decline following impairments, adjusted operating income is expected to decline from JPY 13.4 billion- JPY 10 billion. Next is Electronics & Energy. Resin and plastic, battery, and semiconductor solutions are expected to continue performing steadily. Though some spread deterioration is anticipated. As a result, adjusted operating income is expected to decline from JPY 18.9 billion- JPY 15 billion. Next is Specialty Materials. Adjusted operating income is expected to improve significantly from JPY -9 billion in fiscal 2025 to +JPY 3 billion in fiscal 2026, an increase of JPY 12 billion. As mentioned earlier, the absence of the large-scale Aramid maintenance shutdown in fiscal 2026 is expected to improve volume effects, particularly operating rates. Spread improvements are also expected due to better sales conditions for carbon fibers, including increased aerospace demand. Lower depreciation and amortization expenses following payments, along with structural reforms, are also expected to contribute to improved earnings. As a result, adjusted operating income is expected to improve from JPY -9 billion to +JPY 3 billion. Interest-bearing debt is expected to decline further due to improved cash flow generation. Equity is also expected to increase due to net profit generation, and the adjusted D/E ratio is expected to improve from 0.78- 0.7. Regarding dividends, we aim to maintain stable dividends of JPY 50 per share. This concludes my presentation. Next, I, Uchikawa, will explain the medium-term management plan covering fiscal 2026 through fiscal 2028. Today's agenda is as shown here, but there are three key points I would like to discuss. Previously, we referred to a customer-proximate approach, but today we will discuss establishing a business model driven by customer issues and achieving sustainable profit growth through that model. First, we have slightly changed our wording. Second is structural reform to build a high-quality earnings base that supports this growth. Third, particularly in the materials businesses, our business model will shift from simply supplying materials to becoming customer-driven. Accordingly, we will strengthen our corporate management foundation to support this business model. These are the three pillars of today's presentation. Before explaining the new medium-term plan, I would first like to review the previous medium-term plan. We consistently emphasized strengthening our core earnings power and pursued this through two pillars, portfolio transformation and recovery of core profitability. Regarding portfolio transformation, we executed what we promised, including the sale of the IT business and the North American composites business, not only withdrawing from unprofitable businesses, but also narrowing our business focus from a best owner perspective. As a result, total assets were reduced by 10%, including risk assets, and we believe we successfully stabilized our management foundation. Similarly, interest-bearing debt was steadily reduced and the D/E ratio improved to our target level. On the other hand, regarding recovery of core profitability, although we executed what we had committed to, market conditions changed significantly during this period. In particular, Aramid and carbon fibers businesses, which were heavily focused on supplying materials, struggled considerably. We responded by implementing structural reforms quickly without clinging to the past. While there may have been criticism previously that our responses were slow, we are now able to act decisively when issues emerge. Nevertheless, financial results did not meet expectations. However, businesses such as Fibers & Products and home healthcare achieved high profitability and delivered solid results. While there were areas where we fell short, there were also areas where we fulfilled our commitments regarding recovery of core earnings power. As Shimai explained earlier, fiscal 2025 results unfortunately did not meet our numerical targets. While we regret not achieving our committed figures, we believe we did fulfill our qualitative commitments during the previous medium-term plan. Next, I would like to explain the winning business model and growth strategy we have identified. On the left side is our recognition of the current environment. As written here, the commoditization of materials is accelerating significantly in the areas where we operate. We concluded that the traditional capital investment-led business model now requires fundamental reconsideration. To put it strongly, we believe the material-centric business model has reached its limits. At the same time, social issues have become increasingly complex. In the past, simply providing high-value materials often directly contributed to solving social issues. However, that is no longer sufficient. Since fewer social issues can now be solved solely through materials, we believe we also need to change. Meanwhile, as mentioned earlier, businesses such as Fibers & Products and home healthcare possess overwhelming expertise in their respective fields and have built differentiated value chains and platforms that are highly valued by customers, patients, and healthcare professionals. Through discussions with employees, we also confirmed that Teijin already has a corporate culture centered on growing together with customers. Based on these strengths, we concluded that pursuing growth through a customer-driven business model is the right direction. On the right side is an infinity loop style diagram, and I would like to explain it as clearly as possible today. It describes combining our tangible and intangible assets. The issues customers face cannot necessarily be solved solely by our proprietary materials. We possess diverse technologies, can utilize assets from other businesses, and businesses like Fibers & Products and Home Healthcare provide not only products, but also a wide range of services. Teijin Frontier is an easy example to understand. Of course, it sells yarns and also procures and sells yarns. It can manufacture fabrics and also procure them externally. It has many supporting partners. If necessary, it can support sewing, design, brand launches, logistics, store operations, or even simply handle import operations. Because it has such a broad service platform, customers are highly satisfied. What we want to do now is take what were previously siloed businesses organized by material type and make those assets available company-wide so we can create more solutions that satisfy customers. Going forward, Specialty Materials businesses such as Aramid, Carbon Fibers, and Composites will also evolve into businesses that provide customers with the products and services they need, when and where they need them, without insisting solely on proprietary materials or production. Through this approach, we aim to increase opportunities for Suriawase, working closely with customers to understand key issues and co-create solutions, or Kumiwase, delivering solutions by combining technologies, services, and partners to meet customer needs with customers. Traditionally, materials businesses competed on how efficiently and accurately they could meet customer-defined specifications. Going forward, however, we want to listen to customer issues before they even become formal specifications, as Home Healthcare and Teijin Frontier already do, and solve them through combinations of our capabilities. To achieve this, we will increase customer touchpoints and opportunities for collaboration. Through this process, we aim to create value and businesses together with customers and healthcare stakeholders. Since we already have business areas where this model is working, we now intend to expand it across the entire company. However, to support this transformation, we must also fundamentally change our management and digital foundations. Previously, Teijin’s growth in the 2000s was driven by siloed businesses focused on expanding each individual segment. Now, however, we need to break down those silos and make technology and assets company-wide resources rather than business-specific resources. This is what we aim to accomplish during this medium-term plan. As a result, and to achieve this transformation, we have reorganized our businesses into three strategic categories. To address customers' latent issues effectively, we believe businesses should be grouped more broadly. While we explained them earlier as segments, we enlarge the units for solution creation by grouping businesses together. The two pillars expected to drive sustainable growth are Apparel & Industries, formerly Fibers & Products, and Healthcare & Life Solutions, which combines Home Healthcare Infrastructure with Medical Device Services and Rare Disease Pharmaceuticals. Electronics & Energy combines Resins & Battery and Semiconductor Solutions businesses, which have already generated high profitability and share overlapping customer bases. These businesses are expected to maintain stable earnings while identifying future customer issues in electronics and energy fields. Meanwhile, Aramid and Carbon Fibers businesses, together with Composites, have been grouped into Specialty Materials for restructuring. These businesses must implement cost structure reforms as standalone materials businesses. In areas where these materials are still valued, they must identify customer-driven business opportunities. We believe broader customer and business coverage will make this easier, which is why Aramid, Carbon Fibers, and Composites have been grouped together. Regarding conventional pharmaceuticals, excluding rare disease treatments, the healthcare business had already begun integrating pharmaceuticals and home healthcare during previous medium-term plans in search of a new growth strategy. The sustainable growth direction has now been identified, we decided to separate existing pharmaceuticals as businesses requiring restructuring and consideration of new exit strategies. We intend to grow or restructure businesses according to these three strategic approaches. To support this transformation, future profit growth will focus on customer-driven businesses. This will shift us from asset-heavy, capital investment-led businesses to more asset-light businesses. In this medium-term plan, we are not aiming for aggressive top-line growth. Instead, we aim first to become a more efficient company. To support this, we will establish a high-quality earning space through structural reforms and renew our management foundation to match our changing business structure. Through these three pillars, we aim to achieve fiscal 2028 adjusted operating income of JPY 60 billion and ROE of 8%. While the increase from JPY 25 billion- JPY 60 billion over three years may appear ambitious, JPY 20 billion of the improvement is expected to come from structural reforms, while growth areas are expected to contribute JPY 15 billion. We are not aiming for unrealistic growth, but rather achievable targets. Given our history of impairments on past investments, we believe disciplined investment and improving ROIC are more important than simply chasing top-line growth. Accordingly, our goal is to demonstrate profit growth through improved business efficiency and achieve ROE of 8% by fiscal 2028. Going forward, I would like to explain each of the three frameworks I mentioned earlier in more detail. First is Apparel & Industries, one of our growth drivers. As you know, we have integrated Teijin Frontier, which is strong in polyester, and Asahi Kasei Advance, which is strong in nylon, both of which operate integrated manufacturing and trading businesses. I believe this was announced today as well. The new company will begin operations under the name TA Frontier. T stands for Teijin and A for Asahi Kasei. We intentionally avoided using a name like Teijin Asahi because, while respecting the cultures and corporate values of both parent companies, we wanted a name that reflects our ambition to become a core player in future industry restructuring. Based on employee feedback, we concluded that TA Frontier would better represent that vision. Regarding the substance of the integration, as I mentioned earlier, the two companies possess different strengths in polyester and nylon. From Teijin's perspective, as shown on the right side, this integration provides new pieces for the combinations I discussed earlier, including nylon and Bemberg processing sites and processing technologies. At the same time, from Teijin's standpoint, the customer base in construction material applications, which Teijin Frontier previously did not have, has expanded significantly. As indicated by the arrows, this integration not only creates synergies by utilizing materials and customer assets that each side previously lacked, but also greatly increases opportunities and building blocks for the Kumiawase and Suriawase approach we are pursuing. We intend to continue expanding the business in this manner. Healthcare & Life Solutions, our second pillar. As I have repeatedly stated, we intend to expand the business by leveraging the existing home healthcare business platform and extending into adjacent areas where our strengths can be utilized. To achieve this, we believe expansion of our business foundation through alliances with other companies and M&A will be necessary. First, the arrow shown on the left is what we refer to as outpatient-type home healthcare. Patients visit hospitals roughly once a month for outpatient treatment and prescriptions, and our role is to support the medical care they receive at home. To support this, we have established contact centers, visiting nursing stations, and nationwide sales, maintenance, and support systems. These businesses constitute what we call our home healthcare business, and we now intend to expand into adjacent areas. Compared with outpatient and clinic visit models, we would like to expand into visiting-type home healthcare, where care is provided directly in patients' homes. To support this, we are also considering combining facilities that function as residential care bases. In essence, patients who have difficulty visiting outpatient clinics often require somewhat more invasive medical treatments and care. Therefore, we aim to expand into these areas as well, including through M&A, and create new business domains there. This will be our second growth pillar. Next is Electronics & Energy, which serves as a highly profitable business supporting these growth areas. We have not actively highlighted this business previously, but it is already highly skilled at promoting combinations across production, technology development, sales, and marketing, including collaboration with partner companies. By integrating the previously separate resin business and battery materials business, we expanded the range of solutions we can offer to customers, particularly since the customer bases significantly overlap. This business has always been strong at Suriawase collaboration with component manufacturers and finished product manufacturers. By increasing the range of available solutions, we believe the business will become even more stable and better positioned to identify new customer challenges. Although this is not a particularly large business area, we aim to pursue a niche top strategy here. The third category consists of businesses requiring structural reform. First is Specialty Materials. Ultimately, we want this business to transform into a customer-driven business model. However, first and foremost, the aramid and carbon fibers businesses must implement cost structure reforms as materials businesses and establish a foundation capable of generating stable profits. At the same time, in applications where these materials are still highly valued, such as aerospace, personal protection, defense, and infrastructure, our recognition among customers remains very strong. Leveraging our market positioning, we want these businesses to shift from simply selling materials to identifying customer challenges and solving them. We expect them to uncover as many customer issues as possible. Ideally, by the end of the medium-term plan, profitability in each materials business will have recovered, and we will be able to report that we have established new business approaches in at least some of these four areas. If we can achieve that, we would consider this medium-term plan successful. To put it simply, selling proprietary materials remains an important business today. However, even in this area, we want to move away from a focus solely on our own materials and instead prioritize solving customer challenges. I would now like to discuss structural reforms in more detail. For aramid and carbon fibers, including previously announced measures, we are planning significant workforce reductions alongside reviews of production structures and other reforms. Through these actions, we aim to further strengthen the business structure and establish a framework capable of providing value to customers at appropriate costs for materials that continue generating value even after transitioning to a customer-driven business model. At the same time, in the application areas highlighted in red, where our materials already have a certain level of recognition and customer acceptance, we will also explore the creation of customer-driven businesses. This is one reason why we group these businesses together on a larger scale. Meanwhile, regarding existing pharmaceuticals, as I mentioned earlier, the pharmaceutical and home healthcare businesses had already begun integration around two medium-term plans ago in search of a winning strategy. As I explained earlier, the winning strategy has already been identified. Therefore, for existing pharmaceutical products that we believe no longer contributed to that strategy, we intend to identify best owners and further accelerate our focus on rare disease and intractable disease areas, as previously promised. At the company-wide level, as shown at the bottom, we also plan additional cost reductions across the group through workforce reductions. Of course, this is partly about reducing costs, but more importantly, we believe we must become a more productive company in preparation for an AI-driven era. Therefore, rather than simple cost-cutting, we intend to proactively reduce functions that are deemed unnecessary while strengthening functions needed for customer-driven businesses through the use of AI. Taken together, we intend to execute and realize the numerical targets shown here during this medium-term plan period. As I mentioned at the outset, the nature of the company will change significantly. Until now, we believed it was appropriate for each siloed materials-based business to grow independently. That approach supported Teijin's growth during the 2000s, so it was not necessarily wrong. Now that major transformation of our business structure is required, we believe we must fundamentally change our management strategy in order to truly operate as one unified company. We will implement technology strategies that take siloed assets out of individual businesses and reposition them as shared company-wide assets. We believe this is essential for promoting combinations across businesses. To support this transformation, we must integrate knowledge dispersed globally. We intend to unify our IT infrastructure and establish a one data platform within approximately one year. On top of that, over the next three years, we intend to build systems that maximize the use of AI to digitally promote Suriawase and Kumiwase. We believe we must further develop systems that enable optimal global talent allocation, and we will continue identifying and assigning personnel capable of supporting these initiatives. Summarizing this numerically, this page outlines our targets. The management team, including myself, debated extensively how to disclose these segments. Ultimately, we decided that disclosing the large fiscal 2025 loss in Specialty Materials was important as a demonstration of our determination and commitment to taking a do-or-die approach. We adopted this segment disclosure structure. Overall, we aim for revenue of JPY 970 billion and adjusted operating income of JPY 60 billion. As I mentioned earlier, we are not seeking aggressive top-line growth. We are prioritizing profit growth and improving ROIC to become a more efficient company. As shown here, businesses such as Apparel & Industries, and Electronics & Energy already demonstrate strong ROIC. We intend to maintain those ROIC levels while supporting company growth and stable earnings. At the same time, we aim to improve Healthcare & Life Solutions further and transform Specialty Materials from a loss-making business into one capable of generating ROIC above WACC by fiscal 2028. Next is capital allocation to support these initiatives. We expect to generate cash through earnings from business activities, asset sales contributing to ROIC improvement, and flexible financing arrangements. We intend to allocate that cash toward business reinvestment and shareholder returns. Regarding the content of our growth investments, we have decided to focus first on growing Apparel & Industries and Healthcare & Life Solutions. We intend to concentrate investments in these priority areas. In addition, even in the case of M&A, rather than pursuing new markets through entirely new technologies, as we have done in the past, we intend to limit investments to areas such as rolling up existing businesses through horizontal integration and expanding customer bases by extending existing technologies into adjacent areas. We would like to proceed while reflecting on lessons learned from the past. These are the primary areas for growth investment. To support this strategy, as I mentioned earlier, we believe substantial digital investment will also be necessary. Regarding shareholder returns, our basic policy remains stable dividends. We recorded a significant net loss in fiscal 2025, we maintained dividends as promised. By maintaining stable dividends, we hope that both existing and new shareholders who are willing to support our transformation over the medium to long- term will continue to invest in the company. Going forward, we also intend to steadily improve ROE and demonstrate our improvement backed by profit growth along with decreases in DOE before considering the introduction of DOE around fiscal 2027. These are the basic principles behind our shareholder return policy. The most important point is that we must first achieve a significant improvement in ROE, moving from negative territory to at least 8%, which we believe is the minimum level at which shareholders will feel comfortable in trusting management with executing its strategy. To achieve this, we will place disciplined investment and efficient business operations at the center of our management approach. In terms of investment, we will focus on making disciplined investments in areas where we can compete and win. Through these efforts, we intend to steadily execute on the commitments we have made. Finally, to summarize, we aim to combine all assets across the Teijin Group and strengthen Suriawase collaboration through our numerous customer touchpoints, transforming ourselves into a company that creates businesses and value together with customers. The four business domains shown on the left will serve as the areas where this strategy is implemented. We will work steadily toward making these businesses the new Teijin Group by fiscal 2028. This concludes my presentation
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