I'm Minoru Kida, the CFO. Thank you very much for joining us in this hot weather. First, I'd like to explain the financial results summary for the first quarter fiscal year March 2027. During the first quarter, for FY March 2027, I'd like to give you the summary. During the first quarter, Specialty Materials continued to perform steadily. Amid unstable situations in the Middle East, the business environment remained challenging, with naphtha price soaring and risk of raw materials procurement rising. However, we're seeing inventory valuation gains and a temporary increase in demand. The core operating income for the chemicals business increased year-on-year by JPY 48.4 billion to JPY 60 billion. Contributing factors to core operating income were the effects of sustained pricing strategies and strong performance of semiconductor-related products in Specialty Materials, and improved conditions in the MMA monomer market in MMA. In Basic Chemicals, inventory valuation gains resulting from rising raw material prices contribute to higher profits, despite the expanded scale of scheduled maintenance, where we had the scheduled maintenance in Ibaraki. This year, production slowed down to prioritize continued operation of cracker plants in response to the situation in the Middle East, and a decrease in sales volume caused by an influx of lower prices overseas products. Partly due to the solid performance of Industrial Gases, the overall core operating income for the group increased year-on-year by JPY 57.5 billion to JPY 114.1 billion. Net income attributable to owners of the parent increased year-on-year by JPY 38.1 billion to JPY 57.7 billion. Next, I'd like to discuss our earnings forecast. In light of the first quarter results and current business environment, we have revised upward our first half forecast for core operating income and net income attributable to owners of the parent from JPY 139 billion to JPY 194 billion, and from JPY 59 billion to JPY 86 billion respectively. Meanwhile, our full-year forecast remains unchanged from the previously announced figures due to uncertainties in trends in raw material prices. We have not created any new forecast, and there is no change. From the previously announced figures, our dividend forecast also remains unchanged, a year-end dividend of JPY 16 per share and annual dividend of JPY 32 per share. We'll continue to rigorously adhere to the three disciplined approaches in business operations, concentrate our management resources on areas that serve as next-generation growth drivers, and steadily implement proactive growth initiatives to achieve sustainable growth and enhance corporate value. I will now explain the overview of the first quarter of FY March 2027. The average exchange rate for the full year was JPY 160.7 to the dollar, representing a 12% depreciation of the yen year-on-year. The naphtha unit price was JPY 118,900, up 79% year-on-year. Sales revenue totals JPY 1,004.2 billion, up JPY 123.5 billion or 14% year-on-year. The breakdown of the increase was as follows: JPY 88 billion increase due to higher selling prices, JPY 33 billion decrease due to lower sales volume, and JPY 68 billion increase due to foreign exchange effects. The core operating income was JPY 114.1 billion, up JPY 57.5 billion year-on-year. This represents 82% of the first-half earnings forecast announced in May. I will explain the details of this later. Special items amounted to positive JPY 4.3 billion. Operating income was JPY 118.4 billion, and income before taxes was JPY 111.8 billion. Quarterly net income attributable to owners of the parent was JPY 57.7 billion, up JPY 38.1 billion year-on-year. Next, I will explain sales revenue and core operating income by business segment. For the chemicals business as a whole, revenue increased by JPY 76.5 billion and profit increased by JPY 48.4 billion year-on-year. As for revenue, despite shipment restrictions at some sites due to the situation in the Middle East, an expansion in scale of scheduled maintenance and repairs compared to the previous period. There was an increase of JPY 76.5 billion due to soaring product market prices, an increase in sales volume driven by customers' efforts to secure inventory against the backdrop of the situation in the Middle East. Higher selling prices for various products, particularly in Specialty Materials, and the impact of foreign exchange rates. The core operating income for the chemicals business increased by JPY 48.4 billion, driven largely by strong performance of Specialty Materials, as well as significant inventory valuation gains in Basic Materials resulting from rising naphtha prices. The Industrial Gases segment showed steady progress with revenue up 15% and profit up 20% year-on-year. Details for each segment will be explained later on a separate page. The following is a breakdown of the JPY 57.5 billion year-on-year increase in the core operating income. The price gap was positive at JPY 4.6 billion. While the price gap deteriorated for polyolefins in the Basic Materials amid rising naphtha prices, it improved due to improved selling prices in Specialty Materials, and rising market prices for MMA monomers in MMA & Derivatives. The volume resulted in a drop of JPY 1.2 billion in Specialty Materials, although sales of various products were expanded, the volume worsened due to restrictions on shipments from certain MMA sites caused by the situation in the Middle East, as well as an increase in the scale of scheduled maintenance and repairs in the Basic Chemicals. Cost reductions resulted in a positive impact of JPY 13.8 billion, with Industrial Gases and Chemicals segments each achieving cumulative effects. Others resulted in a positive impact of JPY 40.3 billion. This figure includes a JPY 48.5 billion gain on inventory valuations due to soaring naphtha prices. I will now explain the details by segment. The Specialty Materials posted a year-on-year profit increase of JPY 20.9 billion. The sales gap was positive at JPY 11.9 billion, improving across all sub-segments, including semiconductor-related products. The volume contributed to a rise of JPY 9.1 billion. In Films & Performance Materials, the volume improved due to increased sales of polymers for barrier packaging materials and films for multilayer ceramic capacitors. In Composites & Shapes, the volume improved due to increased sales of high-performance engineering plastics for semiconductor manufacturing equipment and carbon fiber composite parts, primarily for robotaxis. Cost reductions totaled JPY 4.9 billion, driven by the cumulative effects of rationalization measures such as the Next-stage Support Program and the review of production sites across business units. The others of negative JPY 5 billion was attributable to cost increases resulting from inflation. MMA & Derivatives posted a JPY 4.3 billion increase in profit year-on-year. The sales gap was positive at JPY 7.7 billion. Market prices for MMA monomers improved from a year before, leading to a widening of spreads, as I said before. In Functional Chemicals as well, sales gap improved due to higher sales prices for additives. The volume resulted in a drop of JPY 5.5 billion, on the other hand. In the MMA segment, the volume deteriorated due to shipping restrictions at some sites and sluggish operating rates caused by the situation in the Middle East. Core operating income in Basic Materials increased by JPY 21.5 billion year-on-year. Prices had a negative impact of JPY 17.7 billion. In Basic Chemicals, polyolefins selling prices lagged behind rising naphtha prices. Volumes had a negative impact of JPY 6.3 billion. Volumes worsened due to larger scheduled maintenance in Basic Chemicals and lower sales from an influx of low-price overseas products. Others had a positive impact of JPY 44 billion, which includes JPY 48.4 billion in inventory valuation gains from rising naphtha prices. Lastly, Industrial Gases, core operating income increased by JPY 9.1 billion year-on-year. Earnings grew thanks to business expansion through acquiring industrial gas businesses in Australia and New Zealand, as well as cost reductions from productivity initiatives across regions. Next, special items. Special items in the first quarter had a positive impact of JPY 4.3 billion. We recorded a JPY 12.8 billion gain on sale of fixed assets from the land transfer for Nippon Sanso Holdings' head office relocation. Offset by losses from structural reforms, special items totaled positive JPY 4.3 billion. Now, let me explain cash flows. Operating cash flows was an inflow of JPY 35.1 billion. Inventory cash flow was an outflow of JPY 38.1 billion, mainly due to higher raw material prices such as naphtha. Other cash flows were an outflow of JPY 98.7 billion, including severance payments for last year's Next-stage Support Program. Investing cash flow was an outflow of JPY 26.3 billion. Capital expenditure was JPY 66.2 billion. Growth investments in Specialty Materials progressed, including capacity expansion in carbon fiber and composite engineering in Italy. Cash flow from asset sales was positive JPY 42 billion, driven by proceeds from selling cross-shareholdings. As a result, free cash flow was positive JPY 8.8 billion. Financing cash flow was an outflow of JPY 93.4 billion, mainly for interest-bearing debt repayments and dividend payments. Here is a consolidated statement of financial position. Total assets increased by JPY 4.4 billion from the previous fiscal year-end to JPY 5,881 billion. Cash and cash equivalents decreased by JPY 82 billion due to debt repayments. Meanwhile, inventories rose by JPY 41.8 billion on soaring raw material prices, and foreign exchange impacts also lifted total assets. Netting these factors, total assets increased by about JPY 4 billion. The net D/E ratio stood at 0.83, remaining at the same level as the end of the previous fiscal year. This page supplements the change in core operating income for FY 2025 Q4 to FY 2026 Q1. Q1 core operating income reached JPY 114.1 billion, up JPY 74.7 billion compared to Q4. Specialty Materials posted JPY 38.3 billion in Q1, an improvement of JPY 47.8 billion from negative JPY 9.5 billion in Q4. Earnings grew significantly, reflecting the reversal of the JPY 30.3 billion impairment loss on Soarnol-related fixed assets recorded in Q4, steady sales centered on semiconductor-related products, and higher sales volumes as customers build up inventories amid the Middle East situation. MMA & Derivatives posted JPY 80 billion in Q1, turning profitable by JPY 11.2 billion from negative JPY 3.2 billion in Q4. This was driven by rising MMA monomer market prices and increased sales volumes from customer inventory stockpiling and Functional Chemicals. Basic Materials recorded JPY 14.8 billion in Q1, up JPY 19.3 billion from negative JPY 4.5 billion in Q4. In addition to resolving the JPY 5.2 billion impairment loss on ethylene oxide and ethylene glycol production facilities in Q4, earnings surged as inventory valuation gains improved despite worse price differentials for polyolefins from soaring naphtha prices. Industrial Gases decreased by JPY 2.2 billion from JPY 56.3 billion in Q4 to JPY 54.1 billion in Q1, mainly due to a reaction after electronics-related equipment and construction concentrated in Q4. I'll explain the revised financial forecast for the first half of FY 2026. Based on Q1 results and current business conditions, we have revised up our first-half forecast. In our May 13 forecast, first-half core operating income was set at JPY 139 billion. Q1 core operating income reached JPY 114.1 billion, showing strong progress of 82%. This strong performance was driven by robust demand for semiconductor products, higher sales volume from customer inventory building amid Middle East tensions, higher MMA monomer prices, and inventory valuation gains from rising naphtha prices. Our Q2 assumptions are JPY 155 to the U.S. dollar and a naphtha price of JPY 86,000 per kiloliter. Sales revenue is projected at JPY 1,038.8 billion. Despite lower sales volumes following Q1 customers stockpiling, sales are expected to increase over Q1 as scheduled maintenance in Basic Chemicals ends. Core operating income is expected to decline quarter-on-quarter due to smaller inventory valuation gains and payback from customer stockpiling, but the first-half total will reach JPY 194 billion, upside of JPY 55 billion from the May forecast. [Non-English content] Our new forecast for operating income is JPY 189 billion, and mid-year income before tax is JPY 175 billion. [Non-English content] Net income attributable to owners of the parent is projected at JPY 86 billion, an upside of JPY 27 billion. [Non-English content] Here is the first half forecast by business segment. Specialty Materials core operating income is expected at JPY 65 billion, up JPY 27 billion from the May forecast. [Non-English content] Factors include robust semiconductor demand, volume growth from customer inventory stockpiling due to Middle East conditions, and improved selling prices across products. [Non-English content] MMA & Derivatives is forecast at JPY 10 billion, up JPY 5 billion, driven by rising MMA monomer market prices, which I've been explaining. [Non-English content] Basic Materials is forecast at JPY 12 billion, up JPY 18 billion, mainly due to larger inventory valuation gains from higher naphtha prices. [Non-English content] Industrial Gases is expected at JPY 107 billion, up JPY 6 billion, probably owing to a weaker yen. [Non-English content] That concludes my presentation. Thank you very much. Now I would like to move into Q&A session. Now, we'd like to move to the first question from Morgan Stanley MUFG Securities. Mr. Takato, please. Watabe from Morgan Stanley MUFG Securities. Thank you very much for the presentation. Yes, you really produced profits, didn't you? Thank you. Specialty Materials especially was performing well, but the temporary demand increase, where in the products did you see that? If quantitatively, there will be all segments where there will be decreasing from first quarter to second quarter. This will be true, but can you explain more? What would be the recovery with shipment restriction sites, and what about inventory valuation gains and losses in the second quarter? If you can explain all these special factors. Well, thank you very much. As for temporary demand increase, the first part of your question, we cannot really specify which products that we have seen this in. For Specialty Materials products, well, for semiconductor-related products, we have not seen them too much. Even in those products, partially, for this emergency situation, customers are all, in general, wanted to secure their inventory, so we cannot really specify which products. Quantitatively, basically, it's very difficult to specify that. In the second quarter, what would be the turn that we are expecting? Well, there will be some reactionary decrease that we are expecting. From the first quarter to second quarter, probably the numbers are expected to decline, as you can see from the numbers that we have shown. What do those second quarter figures mean? Well, basically, we are expecting these numbers to go back to the original budget. We have seen a much increase in first quarter in sales, but we're not expecting that much decline in the second quarter because of that in Specialty Materials. The panic buying impact from the first quarter is as I just explained. With regard to shipment restrictions, more specifically, the biggest one is in MMA. Maybe you are aware of this, but from April, a plant in Saudi Arabia has not been operating. This is really natural, but rather than securing the operation, we are giving top priority to safety. At the other end of the Hormuz Strait and where there is a risk of missile landing, we cannot really operate the plant. Unfortunately, Saudi Arabian plant has been in suspension since April. Rather than shipment restriction, there is some shortage in raw materials in some sites in Southeast Asia. It may not be so appropriate to say "shipment restriction," but we were not able to produce products because of shortage of raw materials. There is some decline in volumes, and we cannot expect the Saudi Arabian plant to restart the operation because of uncertainty, and that is the assumption that we are using for second quarter. Naphtha is the next part of your question. In the presentation, you've seen this, but JPY 118,900 is the Naphtha price, and JPY 86,000 is the first half assumption, and there is some decline because of that. It's very difficult to specify the amount. We did come up with JPY 86,000 for Naphtha price. For the past 12 days, or the past 10 days, U.S. forces have started the attacks on Iraq, and Crude Oil Brent has also recovered from $90. It's very difficult to tell what is going to happen. Have you seen these reactionary losses or decline already from June? Yes, we have seen this from June for some products. In April, I am not going to exaggerate this, just simply put, just for the purpose of making it easier to understand, panic buying, so to speak, was to some extent seen. In Japan, crackers and other derivatives, we had assured the customers that we are going to continue to operate the cracker plant and others. There was some panic buy in April, from May onward, customers have a bit settled down. There is some reactionary decline even within the first quarter in some products. For overseas products especially, this tendency was prominent in China. The Chinese players have come to buy in large amounts, especially in MMA. The customer inventory levels has been increased, as we can see. In the second quarter, there might be some reactionary decline that you might expect. Thank you. Next, we will move on to Miyamoto-san from SMBC Nikko Securities. I am Miyamoto from SMBC Nikko Securities. Congratulations for the strong performance. I would like to ask you about the composite and shapes. From the fourth quarter to first quarter, the profit increased by JPY 1 billion. On page 22, when you look at the breakdown, the profit increased in all sub-segments, could you elaborate on them? In the second quarter, Q-on-Q, you expect profit decline of about JPY 3 billion. Why do you expect such a large decline? You talked about panic buying. Is that happening in this segment as well? For Zoox, they said that they will soon start mass production. Can you tell more about the shipment for Zoox as well? Thank you very much. I feel a little bit embarrassed when you say it was a very strong performance because it was only for the first quarter, we hope that we will be able to sustain this performance as much as possible. Now, regarding your question, composite and shapes. Last year, in the fourth quarter, we were able to turn profitable in the fourth quarter, finally. In the fourth quarter of last year, it was JPY 5 billion. This year, JPY 6.4 billion. We were able to build up the profits up to JPY 6.4 billion. If you add up, it went up about JPY 1.4 billion. If you look in detail, we call this engineering shapes. The large one is engineering plastic for semiconductor manufacturing equipment. The shipment for those really increased in the first quarter. I think this partially includes some panic buying. Because it is for semiconductor manufacturing equipment, they do not want to fall short, and customers were sort of rushing to buy, and I think that is more intense compared to other products. In the second quarter, we expect some reactionary decline. On the other hand, for the carbon fiber composite, for Zoox, it is coming as expected, and the monthly production is also increasing. We believe we will be able to deliver as we planned for this fiscal year. As you just mentioned, yesterday, I think, Zoox, they said that they will get license for running operations in the United States as well, meaning that the project overall is progressing steadily, and they also need to increase the vehicles. We want to make sure that we can deliver so that they do not fall short of the products. For carbon fiber composite, first quarter, second quarter, I do not think there will be major changes in numbers. But in the engineering shapes, the high-performance engineering plastics, we expect some reactionary decline in the second quarter versus first quarter. Thank you very much. Carbon fiber composite, on Q-on-Q, we thought that you will be able to expect increase in profits, but you are saying that the fixed cost is going to go up, or are you being a little bit conservative? When it comes to composite, we are not really being conservative. If you look first quarter to the second quarter, especially in the first quarter, I think we were able to capture higher prices ahead of schedule, especially composite engineering. We have propylene business as well, and we expect some decline in the second quarters. But in the second quarter, I think we will be able to increase the new products. We have been launching those new products, so that is something that we expect as a growth. I see. JPY 12 billion is a four-year forecast, and you already expect JPY 10 billion in the first half, which means that it's growing higher than expected. Which one specifically do you think is really growing stronger than what you had expected initially? Well, maybe this is my personal opinion, but engineering shapes, as I mentioned at the outset. This is for semiconductor manufacturing equipment. The demand is very strong, so we can expect some upside. Maybe I should not call this upside, but for the carbon fiber, over the last two years, we've been going through major structural reform. This impact of supply chain regionalization, I think we're starting those to take effect. We are also launching new products as well, so those are some of the factors for potential upside. How it will turn out on a four-year basis, it's still kind of uncertain. Therefore, for the full year forecast, we have not made any changes. Thank you very much. Understood. Thank you very much. Next question from UBS Securities, Mr. Omura. Omura from UBS Securities. Thank you. I have a question on page 17, Information Electronics. This time, you have made upward revision, JPY 5 billion is the upward revision. You have also revised upward the sales revenue by JPY 5 billion. Probably this will be mainly from the price factor. If there are any other factors, please let us know. Because the wafer manufacturers or wafer materials are going up in prices, that's what they say. Your silica, the synthetic quartz, maybe you have easier time in revising your price. Can you explain more about silica materials trend? Thank you for your question. With regard to sales revenue and profits, well, were there price factors involved? Well, in one word, the mix of the products has been changed. As you rightly expected, synthetic silica or quartz is increasing significantly in profits. If you ask us if we have increased the prices significantly, yes, volume has also increased. As for synthetic silica, there are not so many customers that we are selling products to. More recently, from the late half of last year, there have been more inquiries from new customers, and shipments to those customers are increasing. The volume is increasing for synthetic silica quartz. I cannot give you too much detail. Especially for semiconductor-related products, there are products that are not growing as much as we expected or have failed to reach the volume that we expected, honestly speaking. For semiconductor processes, there are some materials that they are selling, the customers have improved their production processes, and they have been able to save the volume of products that we have been selling for use. Honestly speaking, there was some decline in volume. Synthetic silica and also there is cleaning business that is increasing significantly as well. The price factors were there, product mix has been changing. The composition amongst the different products that we are selling has been changing. That has been greater factor. Thank you. To a supplemental question, as for lithography products and also the materials, have you been experiencing easier time in price revision? Or you are talking about resist? Yes. It is not that easy to do price revision or convince customers to accept that. We are not in that much challenging situation in terms of price increase. We are not feeling that much, that it has become easier to convince customers for price increase. Okay. Just for clarification, naphtha price or raw material price increase, that has been passed on to the selling prices. Just for that much. If you ask us yes or no, honestly speaking, we cannot tell which one yet. On the other hand, for the petrochemical-derived basic materials, we have been making sure that we can pass on the cost increase to the selling prices, and we have been able to do that. Okay. Thank you. Next question is from Yamada-san, from Mizuho Securities. Hi, Mizuho Securities, Yamada. In the second quarter, I do not really understand why expect decline in profits. Inventory valuation differences and others, I would like to confirm. JPY 40 billion or so is expected absolute value. It had a gain of about JPY 40 billion. If you look at the inventory, compared to the year-end of last fiscal year, it increased by JPY 41.8 billion, and JPY 600 million is related to Nippon Sanso Holdings. The inventory increased by about JPY 36 billion. If you compare fourth quarter, first quarter, and second quarter Specialty Materials revenue, not much change from the first to second quarter, meaning that the inventory level went up for the Specialty Materials. That means that you curb production in other areas substantially to control your inventory level. Is this correct? If that's the case, maybe there is some impact from the periodic maintenance. In the first or second quarter, I think there are positive impact from the fixed cost allocation and differences in operation and Basic Materials segments. I do not really see such impact in the second quarter. Please elaborate on how I should think about the inventory levels. Thank you very much. I said thank you, but I like to also apologize as well. Maybe I'm not fully understanding what you said fully because I was not able to fully catch up, perhaps. When you say inventory valuation gains and losses, I really don't like the way it's expressed. If I explain how we fill that gap, there is a gap in the price that we receive and how much we expensed, and we try to multiply that with the volume. I would like to make sure that people will understand. When we say inventory valuation gains and losses, I don't think it's a good naming. We have about JPY 60,000 in the previous quarter, and now we have a new naphtha price as much as that is more expensive, like JPY 120,000. We should be consuming naphtha at JPY 120,000, but we bought naphtha at JPY 60,000 in the previous year, that is reflected in the numbers, and I'm sure you know this now, Yamada-san. We're seeing the decline in prices that we receive. Now the expense portion is expensive than what we had received. That is happening temporarily right now. The prices, if that continues to drop, the expense portion is going to decline, but at some point it will catch up and converge. Depending on how naphtha will move, it's very difficult to predict. In the first half, we had this much gap, but in the second quarter, as I mentioned earlier, naphtha prices, we expect about JPY 86,000, meaning that majority of that gap or valuation difference is going to peel off. The biggest reason for the decline in the first to second quarter is that one. However, how this is going to really turn out, well, about two weeks ago, the attack has restarted, and if you look at the oil, the Brent oil has gone up to about $90, and naphtha prices, the market price is also going up again. It depends on where naphtha prices will settle. That is going to determine our second quarter results, and this is something that we're really struggling with. Now, when you look at different inventory items levels, when the cost is rising, the inventory valuation is going to go up. Especially when it comes to Specialty Materials, we do see an increase in the inventory levels volume wise. In the second quarter, we like to control the inventory levels because if we keep high inventory levels and if we see a sales decline, that's worse. We really need to have a good control of our inventory in the second quarter as part of our business operation. Thank you very much. As you mentioned, it's a difference in valuation receives and expenses. The volume is the same. JPY 40 billion of inventory difference, you should see an increase in inventory volume, but it's not really happening. Considering that Specialty Materials volume should be going up, we assume that you had a very controlled production in the first quarter. Is this correct? According to what you said, you'll be controlling production in the second quarter as well. When the naphtha prices go down in the future, w e expect the recovery to be much lower. I would like to ask you, in which direction you're going to make efforts? We will continue to make efforts, but when it comes to details of the quarterly inventory levels, we will not be able to disclose. Are we intentionally controlling our inventory levels? Not really. If you look at the results, like MMA, that's one of the representative products. In many ways, production was lower than what we had planned for. In order to meet customers' demand, we did produce quite a lot with some of the products. It's very difficult to say across the board. However, in the second quarter, controlling inventory level is something that we need to be very meticulous about and very cautious about. Understood. Thank you very much. I do understand that you do control inventory levels, we expect to continue your good management operations. Thank you very much. Next, Mr. Okazaki from Nomura Securities, please. Okazaki from Nomura Securities. A very good business performance. Congratulations on these earnings. I have a question on MMA. In the fourth quarter, JPY 5.1 billion, loss to JPY 4.2 billion profit, also JPY 200 million loss in Q2. What was the results in Q1 and assumption for Q2, compared to the current situation? If you can tell us that. As for capacity operation, the Saudi Arabian plant, you have suspended the operation in Q1, and you expect this to continue. What about the capacity utilization in other plants in Q1 and Q2? With regard to conditions for restarting Saudi plant, you said that the missiles are flying and you cannot really restart the plant. What would be the condition to enable you to restart the plant in Saudi Arabia? The last question is about structural reforms. Maybe there is something that you still have some study on. Can you explain as much as you can disclose? Thank you. From first quarter to second quarter, how the prospect has been changing? The way we look at the spread has been changing. In the first quarter, generally speaking, the ICIS Asia has exceeded $2,000. Last year, throughout the year, $1,400, especially toward the fourth quarter, it was even lower. Naphtha prices were lower, obviously. It's not just the product prices, the product prices has been higher in the first quarter. That was a big factor. In the second quarter, this is expected to decline significantly. If you look at the ICIS, more recently, $ 1,600-$ 1,700 level is the one that we're looking at. There is one step lower in China. In the first quarter, we were easier, we cannot have that much easy prospect in the second quarter. As for capacity utilization, as I said, in Saudi Arabia is in the situation that I stated. It's been suspended. For others, there is some difficulty in securing raw materials, especially in Southeast Asia and part of Chinese sites. We were forced to reduce capacity utilization. In China, in the petrochemical businesses or upstream, there are two plants in China, one in Shanghai, ACH. Also acrylic, and also KC plant, the CNOOC cracker derivatives. We are not sure what is going to happen to those sites yet. In second quarter, it's very difficult to tell what will be the capacity utilization. At least we are not expecting a significant improvement. That's the assumption that we have incorporated in this prospect for second quarter. What are other questions? Structural reforms and the conditions to restart Saudi Arabian plant. Conditions for Saudi Arabian plant, we cannot really specify the condition because we don't know what is going to happen. At least if either side is flying missiles, it is out of question to restart the plant. Permanent ceasefire, it has to be there in order to restart the plant. As for the structural reforms, we are making steady progress. At least for the moment, we have withdrawn from the joint venture in Taiwan. We are the subsidiary of the Taiwan. We have shown that we're going to sell the shares in this. What about India? We have to also reconsider what we are going to do in the U.S. Please give us more time. After that, we can share with you some more specific measures. Q2 market prices as about $ 1,600-$ 1,700, is that assumption that you're using? Yes. As for capacity utilization, you are assuming that there's no change in Q1 and Q2. Profit is going to decline because of the market price decline. Is that correct? Yes, correct. It's not just the price, but the spread is going to change. The capacity utilization is not going to change from Q1 to Q2, everything else with the spread is going to worsen, and that is going to be reflected in profits. Yes. Thank you. Next is Umebayashi from Daiwa Securities. We ask one question from one person. Thank you very much. I am Umebayashi from Daiwa Securities. I'd like to ask about Films & Performance Materials. Changes in Q-on-Q basis. Fourth quarter to first quarter, I understand the impairment losses is gone and the actual revenue increase against JPY 10 billion, and the profit is about JPY 10 billion increase. If you look at first quarter to second quarter guidance, revenue is going down by JPY 9 billion, and profit is going to go down by about JPY 7 billion. I think the profit changes is substantial compared to the changes to the revenue. Miyamoto-san earlier in the Q&A, mentioned about the inventory level that will intentionally be curbed in the second quarter after it increased in first quarter. Other than that, maybe trade terms, maybe some of the higher cost of materials is not going to happen in second quarter versus first quarter, for example. Thank you. You talked about the fourth quarter of previous fiscal year, but if you look at the changes from first to second quarter this year, I understand your question is mainly the difference between first to second quarter this year. Let me answer based on that assumption. First of all, we do expect some level of reactionary decline. Films & Performance Materials, we have very broad customer portfolio. We do have some automotive, we also have some electrical, and also Diawrap. It's like a wrap for food packaging. We do expect some reactionary decline in various areas. Another one is display related. We had very strong results in the first half because when there's sports event, TV sells very well, and the World Cup had impact as well. For the display in the second quarter, we expect to kind of settle. That would be the major factors that I can think of. Overall, the volume is expected to go down and the highly profitable liquid crystal is going to go down, and you expect to control inventory. MLCC, the demand is quite strong, and we do not really expect this decline in the second quarter from the first quarter. What you just mentioned or what other people mentioned is pretty much going to happen from the first to second quarter as shown in the numbers. Thank you very much. Thank you very much. Thank you. Mr. Umebayashi. This will be the last question that we can take because of the time. Mr. Nishiyama from Citigroup Global Markets Japan. Nishiyama from Citigroup Global Markets Japan. I would like to ask about Information Electronics in Q1, especially semiconductor profits seems to be quite strong. What is the background behind this strength? Was there any one-time factors? From Q1 to Q2, or Q-on-Q, as Information Electronics, there was a slight increase in profit, but there is going to be a slight increase in revenue, but a big decline in profits. What is the background behind this? Thank you very much. As for Information Electronics, as was said in the previous question, synthetic silica and cleaning business for semiconductor, those were very strong. From Q1 to Q2, is there going to be any major drop? We don't expect that. From Q1 to Q2, what is going to decline partially the spread is going to deteriorate rather than sales price decline. Here, raw materials price is catching up and spread will contract. There were some special factors in Q1, and there was not a panic buying, but is very much detailed gallium nitride. So far was in the incubation initiatives, it's just accounting processing, but we're not posting any sales. It's just expenses that were posted. From this fiscal year, we are expecting very much on gallium nitride. From this fiscal year, we are going to recognize sales for gallium nitride products. At the same time of recognition of sales The inventories for sales will be posted in the first quarter. That will be the profit that we can get from posting this inventory in the first quarter, that is going to be gone in the second quarter. There is some special factor in accounting process in the first quarter. With regard to commercial environment, like volumes and prices to customers between first quarter and second quarter, there's no major change. What happened in the first quarter is expected to continue in the second quarter. As for the special factor for first quarter, is it going to be worth JPY 1.5 billion? In the second quarter, profitability will decline from this first quarter. If you look at the guidance from the beginning of the fiscal year, the profitability is still higher. Profitability improvement is progressing. Is that correct? Yes. JPY 1.5 billion worth for special factor? No, not that much, but we cannot disclose any detailed numbers. Thank you. Thank you. I think it's about time. We'd like to ask Kida-san, CFO, to give a closing remark. Thank you very much for joining our earnings presentation today amid your busy schedules. I know the hot weather is continuing, and I was answering all your questions, and I'm very hot, so I'm just bullish, but I had to take off my jacket. The first quarter results were strong compared to our initial outlook. Although uncertainty remains ahead, we will continue working as one group to meet stakeholder expectations. We will continue to make efforts. We will continue to make improvements. In the first quarter, we had unexpectedly good results, partially due to [GI]. We hope to have this strong performance as a result of our efforts, and we like to seek your continued support. Thank you very much. Thank you very much. Today's conference will be delivered as archive so that you can replay at your convenience. Thank you very much. We'd like to conclude today's conference.