As it is time to start, we will now begin the conference call for the presentation of the financial results for the fiscal year 2025 second quarter. Thank you very much for your participation. Today, Mr. Sasaki, Representative Director and Senior Managing Executive Officer, will give a briefing on the financial results for fiscal year 2025 second quarter. Later, he will be joined by Mr. Yamauchi, Executive Officer and General Manager of the Accounting Department, to take questions. We will conclude the call at 4:50 P.M. Mr. Sasaki, over to you. Thank you. I'm Sasaki from Sumitomo Chemical. Thank you very much for attending our conference call today despite your busy schedule. I'd like to thank our investors and analysts for your daily understanding and support to our management. Thank you very much for that. Now, let me start with a presentation of the financial results for fiscal year 2025 second quarter. Please turn to page four. This is a summary page. Core operating income and net income attributable to owners or parents significantly improved compared to the same period of the previous year. Core operating income of essential ingredient materials increased significantly year-over-year. There were also profits at Sumitomo Pharma with strong sales results, leading to recording of a sales milestone of Orgovyx, and partial divestiture of the Asian business. Compared to the forecast announced in August, in addition to strong sales at Sumitomo Pharma, there was improvement in foreign exchange gain or loss from a yen weaker than anticipated, as well as a reduction in the deferred tax liability, resulting in a reduction in the corporate income tax expenses, leading to an increase in both core operating income and net profit. Please turn to page five. Consolidated financial results of the second quarter. Sales revenue was JPY 1 trillion, [JPY] 95.4 billion, down JPY 146 billion year-on-year. Core operating income was JPY 108.7 billion, up JPY 79.2 billion year-on-year. Non-recurring items not included in core operating income were a loss in total of JPY 5 billion. In the same period of the previous year, there was an impact of recognizing our interest in Petro Rabigh's debt forgiveness gain of JPY 86.5 billion as a non-recurring factor, leading to a profit of JPY 91.8 billion. Compared to the same period of the previous year, this has worsened by JPY 96.8 billion. As a result, operating income was a profit of JPY 103.7 billion, down JPY 17.6 billion year- over- year. Finance income was a loss of JPY 15.8 billion, improvement of JPY 136 billion compared to the previous year when a loss on debt waiver Petro Rabigh was recognized. Gain or loss on foreign currency transactions, including finance income expenses, was a loss of JPY 6.4 billion, improvement of JPY 28.4 billion year-on-year. Income tax expenses were a gain of JPY 3 billion, increase of tax burden of JPY 7.2 billion year-over-year. Net income or loss attributable to non-controlling interests was a loss of JPY 51.2 billion, worsening by JPY 65 billion year-on-year, with improvement of Sumitomo Pharma's income. As a result, net income attributable to owners or parents for the second quarter was a profit of JPY 39.7 billion, up JPY 46.2 billion year-over-year. Exchange rate and naphtha price, which impacted our performance, average rate during the term was JPY 146.02 to a dollar, and naphtha price was JPY 64,900 per kiloliter, yen appreciated, and feedstock price declined compared to the same period of the previous year. Next, page six. Total sales revenue was down JPY 146 billion year-on-year. By segment. Sales revenue decreased in all segments except Sumitomo Pharma. As for year-on-year changes of sales revenue by factor. Sales price decreased by JPY 25 billion, volume variance decreased by JPY 88.1 billion. Foreign exchange transaction variance of foreign subsidiaries' sales revenue decreased by JPY 32.9 billion. Next, page seven. Total core operating income increased by JPY 79.2 billion year-over-year. Analyzing by factor, price was +JPY 6.5 billion, cost + JPY 6.5 billion, volume variance, including changes in equity in earnings of affiliates, was + JPY 66.2 billion, all were positive factors. Next is performance by segment. First, Agro and Life Solutions. Core operating income was a profit of JPY 11.2 billion, down JPY 2.9 billion year-over-year. Price variance, profit margin improved for overseas crop protection products. Volume variance. In addition to decrease in shipments of overseas crop protection products, there was lower income from exports due to stronger yen. Stronger yen's effect on the sales of subsidiaries outside Japan when converted into yen. Next is ICT and Mobility Solutions segment. Core operating income was a profit of JPY 33.1 billion, down JPY 10.5 billion year-over-year. Price variance, selling prices of display-related materials declined. Volume variance. Though there was a gain on the sale of a large LCD polarizing film business. There was lower income from exports due to stronger yen and stronger yen's effect on the sales of subsidiaries outside Japan when converted into yen and decrease in shipments of display-related materials. Advanced Medical Solutions segment. Core operating income was a loss of JPY 1.4 billion, down JPY 1.7 billion year-over-year. Shipments decreased because of difference in the timing of shipments compared to the same quarter previous year for some pharmaceutical ingredients and intermediates. Essential Ingredient Materials segment. Core operating income was a loss of JPY 18.6 billion. Improvement of JPY 16.1 billion year-over-year. Price variance, with a drop in naphtha price, which is a main feedstock, profit margins improved in synthetic resins and alumina. Volume and other variances, there was improvement in profitability in investments accounted for using the equity method at Petro Rabigh due to factors such as improved refining margins. For Sumitomo Pharma segment, core operating income was a profit of JPY 97.3 billion, up JPY 94.3 billion year-over-year. Price variance, selling prices declined in Japan with NHI drug price revisions. Cost variance, there was a decrease in selling expenses and general and administrative expenses due to progress in rationalization. Volume and other variances, in addition to expanded sales of Orgovyx, a therapeutic agent for advanced prostate cancer, and Gemtesa treatment for overactive bladder, gain posted on a partial divestiture of Asian business and Orgovyx sales milestone are included. This is all for the results per segment. Next is consolidated statement of financial position. As of the end of September 2025, the total asset stood at JPY 3,364.5 billion. year-on-year, this is dropped by JPY 75.3 billion. This is mostly due to a drop in the rate accompanied to shares by sales of businesses, as well as a decrease in cash on equivalents by repayment of interest-bearing liabilities. Interest-bearing liabilities stood at JPY 1,191.7 billion, which is a drop by JPY 94.5 billion compared to the end of the previous term. Equity stood at JPY 1,179.6 billion, which is up by JPY 105.2 billion compared to the end of the previous term. Now, let me explain the consolidated cash flow. The operating cash flow is +JPY 57.5 billion. However, year-on-year, this is a drop by JPY 5.9 billion. The profit level improved. We saw a deterioration of the working capital due to revenue increase at Sumitomo Pharma, as well as corporate tax increase. The investing cash flow was -JPY 16.7 billion. year-on-year, this is a drop by JPY 91.1 billion. This term, we had a partial sales of Asian business at Sumitomo Pharma, but in the same period last year, we had a significant income by sales of Loiband shares by Sumitomo Pharma, as well as sales of Sumitomo Bakelite shares. As a result, free cash flow stood at JPY 41 billion. Compared to JPY 138 billion the same period of previous year, this is a deterioration by JPY 97 billion. Cash flow from financing activity was - JPY 114.8 billion due to repayment of borrowing compared to the same period of last year. This is an increase in outflow of JPY 39.4 billion. Now, I'd like to explain the outlook for fiscal year 2025 on a full-year basis. First, let me explain the business environment surrounding our company. Regarding the economic situation, the global economy continues to show signs of a slowdown. Amid heightened uncertainty, the outlook remains unclear. Below, our assessment of the business environment for our key sector is indicated using weather symbols as usual. For agrochemicals, at the top, crop protection price competition is expected to persist with regional variations in slow-moving inventories and distribution. Methionine market bottomed out at the end of last fiscal year and recovered in the first half of this year, but is expected to decline in the second half. In this place, mobile-related components remain robust for semiconductors, though there is a variation by sector, but the demand is anticipated to show a gradual recovery trend. Regarding petrochemicals and raw materials, low margins are expected to persist. On page 17, you can see the summary of financial forecast for fiscal year 2025. We have revised the previous forecast in May to incorporate the recent performance trends and the impact of the partial sales of Petro Rabigh shares. The core operating profit forecast for fiscal year 2025 is JPY 185 billion, which is an increase of approximately JPY 45 billion year-on-year, an increase of JPY 35 billion compared to the previous forecast. On the left-hand side, the actual gain on sales of business, shown in gray, was projected to be approximately JPY 50 billion in the May forecast, but by incorporating partial sales of shares in Petro Rabigh, it is revised to approximately JPY 80 billion. The profit from the business activities shown in blue, representing the underlying profit and loss, is projected to show a significant year-on-year increase due to sales expansion at Sumitomo Pharma and reduced stake in Petro Rabigh. We revised it upward from the May forecast, targeting over JPY 100 billion. By segment, gross areas are these two segments, agro and life solutions and ICT mobility. We expect achieving JPY 100 billion in profit from the business activities. Regarding the profit and loss associated with the partial sales of Petro Rabigh shares, the combined impact of the valuation loss associated with subscription to new class shares and the increase in loss accounted for by the equity method is expected to be minimal on the final PL because they are offset with each other. Now, the business performance forecast. We forecast the revenue of JPY 2.29 trillion, a decrease of JPY 50 billion from the previous projection, core operating profit of JPY 185 billion, net profit attributable to the owners of the parent of JPY 45 billion. Assumption on the effects and asset prices are, as stated, regarding sales revenue, Sumitomo Pharma expects strong sales in North America, mainly for Orgovyx. Essential and green materials except a decrease in revenue due to a decline in shipments resulting from the sales suspension of Petro Rabigh products, which is our subsidiary company. Core operating profit by segment will be explained on the following slide. Net income attributable to the owners of the parent is expected to increase by JPY 5 billion from the previous forecast. Related to Petro Rabigh company's shares, cash contribution methodology associated with Petro Rabigh was not clearly identified, and the series of profit and loss impacts was accounted for under non-recurring items. That is how it was incorporated in the forecast, but this year, this time, the methodology for cash contribution and the accounting treatment was finalized. As a result, for six months, the sales timing was delayed by six months. As a result, the losses we bear under the equity method will increase. As a result, the gains on sales of equity will increase. As a result, core profit significantly increases. Next, we incur valuation losses of class B shares we newly acquired. As a result, there are additions and deductions among accounting items, but the impact on net income is limited as they had been already incorporated in the previous projections, and therefore, impact is not big. Next, regarding the full-year. Performance or the sales revenue and core operating by reporting segment onto Agro and Life Solutions, though achievements shifted from the first to the second half, performance has largely progressed as previously announced, with the previous forecast kept unchanged. For ICT and Mobility, EV market recovery is slow, and the semiconductor market recovery is slightly moderate compared to our projection with some unevenness. As a result, we have adopted a little bit of a conservative outlook compared to the previous announcement. Essential and Green Materials, as I explained earlier, is expected to see a significant increase in core operating profit. At Sumitomo Pharma, mainly due to strong sales in North America, therefore, it is expected to see a significant increase in profit compared to the previous forecast. The Other segment sees its profits drop compared to the previous forecast. This is due to the fact that at the time of the previous forecast, a certain degree of performance improvement measures were factored in, so they were incorporated into the other categories. However, in this announcement, based on the assumption that they are likely to materialize in each segment, Essential and Sumitomo Pharma numbers are calculated, and therefore, those factors are not incorporated into Others. This concludes our explanation of the financial results and earnings forecast. Now we would like to entertain your questions. Thank you. Now, we'd like to start the questions and answers session. Now, the first question. For Morgan Stanley MUFG Securities, Mr. Watabe. Thank you for your presentation. In your new forecast, Petro Rabigh sales impact, I'd like to hear more about it. In Essential, JPY 50 billion is included this time, but the increase in profit is JPY 23 billion. What is the reason for that? Not related to Petro Rabigh, there is -JPY 40 billion for Others. You explained because there were recoveries in other segments, but it seems to be too large. And non-recurring items, it was -JPY 45 billion, but with the gains from sales of Rabigh, that was assumed, but that is negative. What is the reduction of JPY 25 billion in non-recurring items? With a sales-related Petro Rabigh, maybe your forecast was too bearish. Could you explain the reason? Yes. Thank you for your question. For Petro Rabigh, we announced the influence recently, but for the sales itself, JPY 50 billion of sales proceeds was announced. As you know, in here, there was a time gap of six months, and that impact is included. So 22.5% means that the equity method is continued to be applied. There was an increase in the burden in terms of losses based on the equity method, and that is one factor. JPY 50 billion, because there were losses from equity method, the sales cost dropped. In net, it is lower than that. That included, the increase in profit was only about JPY 23 billion. Besides, there is, included under finance losses for the B shares newly acquired, there is a valuation loss included. So sales of equities. When you calculate the total loss, actually, the impact is not that large. Yes, I understand. Petro Rabigh. There is a negative in terms of sales proceeds because of equity method. Let me add to that explanation. How was that included in the original forecast? I think that is your question. In the original forecast, core operating income, Essential and Green and EGM, it was not included at all. That is one point. That makes the difference. For non-recurring items, we were including some impact. By adding some items, for example, valuation loss, it is very difficult to express. The losses were included in the non-recurring items. That is not a non-recurring item. That is a financial loss. Improvement of a non-recurring item compared to the forecast is because of this background. We are not considering the sales gains. It's not that we are not taking into consideration at all, as I will explain. In your question, you asked about other corporate expenses. Compared to the forecast, this has worsened about JPY 24 billion, JPY 25 billion. That part, in the initial forecast, we included some forecasts of improved performance in EGM and Sumitomo Pharma. For both, we had conservative figures, and Petro Rabigh equity sales, we could not talk about it. Without including those figures, these were all added together and included under other corporate expenses. That is now being distributed into other segments. It is now included in the figures of the relevant segments. It looks as if the total corporate figures have worsened, but that is the reason. Is it possible to have such a big negative figure for corporate, about JPY 40 billion? Is that what you mean? Yes. The reason why it was good so far, Sumitomo Bakelite and other items of profit and loss are included, and sales proceeds that happened last year are included. Besides, Sumitomo Chemical Engineering and Nippon Major Physics, those losses are included under others. These two are already sold. This fiscal year, there are not so many positive factors. Under others and adjustments, expenses are high. That is how you should interpret it. Major Physics, I think that was life science by my understanding. It's not that you are assuming a larger buffer. If you ask me if we are conservative, basically, yes, our forecast is intended to be conservative, but we are not including a large buffer. You are conservative. I understand. Thank you very much. Mr. Watabe, thank you very much. Now, we would like to go on to the next question. Mizuho Securities, Yamada-san, please. I am Yamada from Mizuho Securities. Thank you very much. I would like to double-check about the core profit. Agro and Life Solution. In the first half, there was some shortfall. From the first to the second quarter, there was seasonality. You said that there is some visibility, but you had some shortfalls. From the first half to the second half. There was a timing difference of the shipments. Was it the reason? On a full-year basis, there was no change in the forecast. Therefore, my understanding must be correct, but I'd like to double-check. The ICT mobility solution, a downward revision, the operating profit and the revenue were revised downward. EV and the semiconductor recovery are delayed. That is the reason. Marginal profit ratio. Against the revenue dropped by JPY 30 billion. Operating profit drop was limited to JPY 3 billion. Therefore, the balance seems to be optimistic between the two. Could you please explain this situation? First of all, AGL. From the first half to the second half, there was some shift. At this point, in Latin America, business is struggling. From the second to the third quarter, there is some shift that is our awareness. As much as possible, we would like to make a recovery within the third quarter. On the other hand, in North America or in India, in these regions, because they are a northern hemisphere, therefore, we expect more to come. We do not have any unfavorable factors. While the slow-moving inventories start to recover. Based on that, comprehensively, when it comes to AGL, we are likely to achieve the initial projection. Furthermore, JPY 145, that is the correct assumption for this projection. Currently, yen is a little bit weaker than that. I believe that this will also make a further contribution. On to ICT. The major factors are, as correctly pointed out by you, EV and the semiconductor. Although there is some recovery, but not much recovery than we anticipated. That is some negative impact. They are incorporated. The profit margin is off. That is what you pointed out. The revenue in itself, maybe, we put the numbers quite roughly, and sometimes we round the numbers. It is not precise. It is better not to pay too much attention to the profit. It does not mean that you made a significant change to forecast assumption. That is why I thought something is off. However, you more precisely calculate core operating profit. That is why you ended up with this result. Am I correct? Yes. Agro life solution. Regarding the sales status of new products, is there any delay, or are there any new products that are sold earlier than schedule? There is no major delay. That is our current understanding. Thank you very much. Fully understood. Thank you very much. Thank you very much, Mr. Yamada. The next question is from SMBC Nikko Securities, Mr. Miyamoto. Thank you. I'm Miyamoto from SMBC Nikko Securities. I also have a question about agro and life solutions. As a business environment, you have a cloud mark. What is the current situation? What is the situation of the inventory? There are differences from product to product. Could you explain a little more about it? In addition, price competition continues. In terms of price variance, there were improvements of profit margin of foreign crop protection chemicals. It seems that. Could you explain the price trend and biorational indifferent sales situation? Could you talk a little more about it? Yes. Thank you for your question. For AGL, in the first half, in Latin America, the situation was a little worse than what we had assumed. For distribution inventory, compared to the previous year, there are improvements, but still the level is high. Generic products competition is still expected. For Rapidisil in Argentina, still, we will continue to emphasize expansion sales. Indifferent in Brazil, it is the second season. We will also continue to expand sales of this large-scale insecticide. We want to recover from the first half towards the second half. The other regions, in the United States, it is improving quite a lot, I believe. Of course, competition with generic products exists. As North America in general, there's improvement in the desire of our customers to accept our product. North America is a place that is just starting. We will keep watching. India, India as well, there is a question of the distribution inventory, but there are improvements seen. Not only in North America, but also in India. I think we can look forward to the situation in India by watching with care. We hope we will achieve our target at the beginning of the fiscal year. Thank you very much. About the price variance in Latin America, there is still a drop in price, and it's getting higher in other regions. That is the general image. How about the situation, the places which price is getting higher? Price itself, rather than higher prices in the price variance, that is a tug-of-war with cost. Including the cost, the improvements in some places, that is the meaning here. I understand. On page 29, in Latin America, there were sales and some carried forward in Japan, but the impact in Latin America is bigger. Yes, in Japan, currently, including the price of rice, prices are getting higher in Japan. The customers, the farmers, have quite a strong desire to purchase, so there are advanced sales. In Central and South America, the market is larger, so still, the impact remains. I understand. Thank you very much. Mr. Miyamoto, thank you very much. Now, we would like to go on to the next question. Diverse Securities, Umebayashi-san, please. Thank you very much. I am Umebayashi from Diverse Securities. I would like to ask you some questions on ICT and mobility solutions. From the first quarter to the second quarter, the revenue is approximately JPY 8 billion. Therefore, it is a significant increase, but the profit, JPY 4 billion drop. There was a gain on sales of the business in the first quarter. I understand that, but excluding that, although the revenue increase is significant, the profit was almost flat. What is the reason for that? Especially in the industry, smartphone in North America is strong. In the second half, you mentioned that you might be a little bit conservative. Why is it that the situation is deteriorating to this extent? Could you elaborate on that? Let me see. ICTM, in comparison with the previous year, currently, yen is stronger. That is our assumption. This is the segment most affected by the forex fluctuation. Another factor is the impacts of tariff. At the beginning of the year, we told you that in total, JPY 10 billion of impacts will be felt from tariff, and we start to feel that impact now. Throughout the year, this is likely to be within the scope of our projection at the beginning of the year. The reason for a drop this time is, as I explained earlier, EV as well as mobility. These are the major reasons, especially compared to our initial expectation. There are some changes from the semiconductor situation. Therefore, they are separately incorporated. Separator of EV feel the impacts, and please understand it in that way. Thank you very much. Between the first quarter and the second quarter, revenue increased. However, the profits dropped. The profit dropped because in the first quarter, there was gain on sales, but it did not occur in the second quarter. However, between the first quarter and the second quarter, what was the major change in the mobile business? What was the major change for the polarizing film between the first quarter and the second quarter? There is an impact of the gains on sales, which did occur in the first quarter, so that may have an impact on profit. The display was performing quite well last year, so there was some rebound from the previous year. There are some irregular elements incorporated here, so please do understand it in that manner. Understood. Thank you very much. Thank you very much, Mr. Umebayashi. The next question is from Nomura Securities, Mr. Okazaki. Thank you. I'm Okazaki from Nomura Securities. For core operating income, a question for confirmation. Essential green materials, you made the upward revision, but in terms of fundamentals, compared to six months ago, is it right to say that there are no major changes? What is your view about Rabigh and Singapore and other places, as was included in previous questions? From the first half to the second half, losses, core operating loss tends to increase. What is the item for that? This year, I understand there's not so much difference between first half and second half in terms of sales of business. Could you explain that? Yes, thank you. First, for essential, in terms of a watermark, I explained, basically, from the beginning of the year until now, there are no changes. Singapore, for example. For PCS. We are studying the possibilities of optimization in TPC, MMA. In particular for MMA, restructurings and other rationalizations took place. On top of that, high profitability items, high value-added items of areas that we plan to shift to maintain the profit. That is a policy. As for the environment, we have not changed our view. For other areas, comparing first and the second half, in the second half, for example, this is a matter of how we spend our expenses. For R&D expenses, tends to be concentrated in the second half. That is the trend that we see. That is also included. I understand. Thank you very much. Mr. Okazaki, thank you very much. Now, we are getting closer to the ending time. Now, we would like to take the final question. VOVA Securities, Enomoto-san, please. VOVA Securities, I am Enomoto. I have a question on net income. Looking at the plan for the second half, there is a significant gap from the operating profit to net income. Various items are included in the operating profit. Why is it that the net income is so compressed in the second half of the year? Thank you very much for your question. Throughout the year, non-recurring items, at which timing they will be recorded, that also have an impact. JPY 5 billion was the only one that was generated in the first half. However, there are several structural reform-related expenditures that will be occurring, which will be around JPY 25 billion throughout the year. The remaining portion will incur in the second half. Regarding the financial profit, it will be skewed toward the second half of the year. That is our view. This is due to forex. This is the current view. It is currently at JPY 150, but based on the assumption of the yen is stronger to JPY 155, then the forex loss may occur. Talking about the tax, as I mentioned earlier, Sumitomo Pharma deferred tax liability reversal again was observed in the first half. This is an extraordinary item in the first half. This will not appear in the second half. There are several factors, and therefore, the loss will incur in the second half of the year. That is my explanation. The forex loss, what is your projection of that for the second half? Not so much, but our assumption is that the forex is JPY 145. Thank you very much. Enomoto-san, thank you very much. This concludes the Q&A session. Lastly, Mr. Sasaki will give the final greetings. Thank you very much for attending today. This fiscal year is the first year of our medium-term plan. Within the medium-term plan, we have set targets. To achieve the target, we will do our best. We hope we can continue to have your support. Thank you very much for your participation today. This concludes today's conference call. Thank you very much for your participation.