I am Shimizu. Thank you very much for joining us today despite your busy schedule. Now, let me begin my presentation. Page one. Here, we have summarized the key points of today's presentation, especially the message I would like to convey. First, regarding our performance for the first half. We started the first half amid an uncertain market environment due to the worsening situation in the Middle East. Against such circumstances, we steadily addressed the raw material and component procurement constraints and properly passed on higher cost to prices. We were also able to reliably respond to front-loaded demand. As a result, our first half results achieved significant increase in sales and profit, with net sales, OP, and ordinary income all reaching the record highs. Also, M&A investment centering housing businesses in growth expected areas also progressed steadily, and Nishida will explain about this later on. Regarding LiB business, we decided to withdraw. For the second half, we anticipate a sudden reaction to the front-loaded demand of the first half. While focusing on the development and preparations for further growth from the next fiscal year onward, we expect increased sales and OP. For the full year, we aim for a substantial increase in sales and profit, record full-year profit with net sales of JPY 1 trillion 491 billion, and OP revised upward by JPY 8 billion from the April plan to JPY 123 billion. The last part of this page is concerning shareholder returns. Based on our first half result, we will set the interim dividend at JPY 41 per share, an increase of JPY 1 from the July forecast. We plan an annual dividend of JPY 82, an increase of JPY 2, marking 17 consecutive periods of increased dividend. We will continue to aim for both aggressive investment and returns. Moving on to page two. I would like to explain the progress of our film-type perovskite solar cell business. As for sales, starting from this fiscal year, we delivered a total eight units to four municipalities, focusing mainly on metal roof of public facilities with low load-bearing capacity, as shown here. In addition, we decided to invest JPY 9.5 billion in production technology innovation for further performance improvement and cost reduction. We will continue full efforts to establish the Sakai 100 megawatt line toward the product supply launch in the first half of FY 2027. That concludes my presentation. Thank you very much. Hello, I am Nishida. Next, I will explain our first half results. Page three shows the actual exchange rates. Page four is the overview of our first half financial results. In the first half, net sales, operating profit, and ordinary profit all reached record highs. We recorded JPY 5.1 billion in extraordinary losses to replace defective batteries sold in the past, and JPY 2.6 billion for asset disposal, mostly inventories and other costs related to our withdrawal from this business. This was mostly recorded in the first quarter. As a result, net profit was JPY 34.8 billion, up JPY 3.1 billion year-over-year. Next, please go to page five. This page shows first half results by segment. All segments achieved higher sales and profits. On a company-wide level, both sales and profits rose significantly, exceeding our July forecast. Operating profit reached record highs in High Performance Plastics, Urban Infrastructure and Environmental Products Company, and company-wide. As mentioned earlier, we decided to exit the LiB business in the other segment after assessing its profitability and future prospects. We will explain each segment in more detail later. Page six breaks the results down by the first and second quarters. In High Performance Plastics and Urban Infrastructure & Environmental Products Company, the second quarter demand pullback was milder than expected. For housing, profits were weighed towards the first half last year, but are expected to shift to the second half this year. Partly due to opening order backlogs, medical profit declined in Q2. Both were broadly in line with our July forecast. Next, page seven analyzes our first half results. On the left, sales increased by JPY 71.9 billion year-on-year to JPY 701.7 billion. On the right, higher raw material costs from the worsening situation in the Middle East were offset by higher selling prices, improving margins. We also captured strong demand for high-value-added products, including electronics and aircraft-related products in High Performance Plastics. By responding effectively to raw material procurement difficulties and demand brought forward, we achieved a substantial increase in volume and product mix. Cost control also contributed, and results came in well above our July forecast. From page eight, I will discuss our revised plan for the second half. We assume this exchange rate, as you can see. Page nine shows our market assumptions. In the top left, smartphone shipments were below the previous year's level in Q2, as expected. We expect a slight recovery from Q3 onward, but shipments are still forecast to remain below last year. At center left, we expect the semiconductor market to remain at a high level. In the bottom left, global automobile production was broadly in line with expectation in Q2, but from Q3 onward, we expect it to be below both our previous assumptions and last year's level. In the top right, housing visitors. Showroom visits declined in the first half, and overall visitors were below last year's level. We expect this trend to continue from Q3 onward. Housing starts are expected to increase slightly year-on-year this fiscal year, but in the midterm, the gradual downward trend remains unchanged. In the bottom right, domestic naphtha prices turned downward in Q2, but are still expected to be well above our initial assumptions. Page 10 shows the revised second-half plan by segment. We expect net sales and profits to increase in the three segments other than Urban Infrastructure and Environmental Products Company, as well as company-wide, with record high profits. We expect some pullback in High Performance Plastics and Urban Infrastructure and Environmental Products Company. For the second half, we plan sales of JPY 789.3 billion and operating income of JPY 62.6 billion, aiming for record highs in both. Other segment is as shown. We will continue upfront investments slightly above our April plan. Page 11 analyzes the revised second-half plan. On the left, sales are projected to increase by JPY 109.8 billion to JPY 789.3 billion. This increase includes approximately JPY 55 billion from new M&A in the housing business this fiscal year. On the right is operating profit. Volume and mix are expected to fall short of the April plan due to a pullback from the first-half level and fewer housing units sold. However, we expect year-on-year growth led by High Performance Plastics. We expect higher raw material costs to continue, but will seek to offset them through selling prices. We expect fixed costs to rise due to spending in growth areas, including M&A-related expenses. Meanwhile, exchange rates and the impact of new M&A on the left-hand side are expected to contribute positively. Overall, our revised plan is operating profit of JPY 62.6 billion, up JPY 1.5 billion year-over-year. Page 12 shows our revised full-year plan. We expect sales and profits to increase in every segment and company-wide. We are also raising our operating income forecast from the April plan. High Performance Plastics, Urban Infrastructure and Environmental Products Company, and the company as a whole are expected to achieve record high profits. Page 13 summarizes our full-year profit plan. We aim for record high operating profit of JPY 123 billion and ordinary profit of JPY 122 billion. Despite this year's extraordinary losses and last year's gains from share sales, we expect net profit to rise to JPY 76 billion. We plan to raise the annual dividend by JPY 1 from our April plan to JPY 82 per share, making the 17th consecutive year of dividend increase. Finally, page 14 shows our consolidated performance trends. In this first year of our midterm plan, we will steadily progress towards our FY28 operating profit target of JPY 150 billion. With EBITDA expected to reach another record high, we believe our earnings power to steadily strengthening. We will continue to allocate management resources to investments that lay the groundwork for future growth. Thank you very much. I am Asano, President of the High Performance Plastics Company. Thank you for your time today. I will now explain the overview of our company. First, please look at page 16. This shows our company's performance trend since FY 2022. For the first half FY 2026, the electronics field was driven by robust semiconductor demand. The mobility field grew on firm aeronautical applications, and the Industrial field saw front-loaded demand due to worsening conditions in the Middle East, resulting in increased sales and profit across all three fields, with first-half result reaching record highs of JPY 264.2 billion net sales and JPY 38.3 billion in OP. Now, on the other hand, for second half FY 2026, growth markets in the electronics and mobility fields are expected to remain firm, similar to the first half. In the Industrial field, despite the negative rebound to the first-half front-loaded demand, we aim to increase net sales and OP year-on-year through the expansion of high-growth product groups, targeting record high profits for both the second half and the full year. Next, page 17 explains the first half FY 2026 performance and year-over-year variance. First, regarding volume and mix, we achieved growth exceeding July forecast in all three strategic field. Growth was particularly driven by semiconductor-related products in the electronics field and aeronautical components in the mobility field. In the Industrial field, general consumer goods such as tapes and adhesives also grew more than expected, compounded by front-loaded effect to secure products ahead of the worsening Middle East conditions. Higher raw materials cost from soaring naphtha prices were offset by agile selling price improvements. Fixed costs were compressed below July forecast, resulting in a year-over-year sales increase of JPY 40.6 to 264.2 billion, and OP increase of JPY 10 to 38.3 billion. Next, page 18 explains the variance compared to the previous year for the second half FY2026 revised plan. As for volume and mix, while we expect a reaction to the first half demand in Social Infrastructure field, which is renamed from the Industrial field starting in the second half, the Electronics field can expect continued expansion of related products driven by robust semiconductor demand. In the Mobility field, in addition to capturing firm demand for aeronautical components, we expect growth in N-HPP films centering on HUD wedge-shaped films, supported by increased adoption of color and design film for EVs in the auto market. On the other hand, regarding raw materials cost, while selling price improvement progress in the first half, naphtha price may remain high due to worsening Middle East conditions. We factor in worsening impact from US-Canada tariff effect, expecting impact amount to be larger than the first half. We have also factored in an increase in fixed cost resulting from bringing forward growth preparations for sales expansion from the next fiscal year to respond to raising semiconductor demand for which further market expansion is expected. Consequently, our revised plan targets net sales of JPY 266 billion, year-over-year increase of JPY 33 billion, and OP of JPY 33.2 billion, a year-over-year increase of JPY 2.2 billion, aiming for record high profits in both second half and full year. Finally, page 19 explains net sales in the three strategic fields and trends in KPI. First, Electronics field. While products for LCD remain firm, semiconductor market is expanding rapidly, and we expect significant growth in the second half following the first half. We will focus particularly on increasing demand and market share in the non-LCD field, centering on high-performance semiconductors, as well as on winning new orders. We will also work to further expand heat dissipation materials as their adoption progresses in semiconductor inspection equipment and electrical components. On the other hand, in the Mobility field, which sees continued weakness in automobile production volume, mainly in China, first half sales struggle to expand for N-HPP films other than HUD wedge-shaped films. However, from the second half onward, since the number of vehicle models adopting color and design films is expected to increase, we will continue to focus on expanding the sales of N-HPP films centering on HUD wedge films. In aeronautical applications, customer production volume increases higher added value, and the acquisition of new air mobility customers are progressing smoothly, and further sales expansion is anticipated. In the Social Infrastructure field, although a reaction to the first half front-loaded demand is expected for the general consumer goods, we expect a certain growth in the second half as well, driven by selling price improvements and the expansion of growth area product groups, including sensing and care material products. We'll continue to focus on securing spreads and expanding our divisional business. With this, I would like to conclude my presentation. I am Yoshida from the Housing Company. I would like to start my presentation. Please turn to page 21. First, I will review the first half results and the revised plan for the second half. Although home sales declined amid a weaker new build market, growth in the renovation and residential businesses offset the decrease. Company-wide, both net sales and operating profit increased, reaching JPY 278.8 billion and JPY 16.8 billion respectively. In addition, growth investments in our priority areas are progressing well. In the second half, we target a fifth consecutive year of revenue and profit growth, with record high revenue and operating profit. We will ensure profits through our existing businesses, further accelerated with newly consolidated companies. We expect a growth in sales and profit for the full year, and we'll target record high sales and profits. Next, please turn to page 22, where we review our first half results. The chart on the left shows revenue. All three segments, housing, renovation, and residential, recorded growth. Company-wide revenue rose by JPY 20.1 billion, exceeding our July forecast. The chart on the right shows the analysis of operating profit. In the housing business, the number of houses sold fell by 132 year-over-year. Higher material costs also weighed on results, reducing operating profit by JPY 900 million. In the renovation and residential businesses, higher margins helped offset higher fixed costs from strengthening our teams. Operating profit rose by JPY 800 million and JPY 1.3 billion, respectively. Overall, operating profit increased by JPY 500 million, exceeding our July forecast. Next, please turn to page 23 for the analysis of the revised second half plan. On the left, the plan calls for an increase of JPY 72.7 billion in company-wide net sales, significantly above the original plan. This reflects the expected contribution from consolidated Noble Home, Mirai Toshi Kaihatsu, and Ausbuild, as announced in the first half. Noble Home is included in housing, Mirai Toshi Kaihatsu in residential, and Ausbuild in other. The operating profit analysis on the right also reflects the impact of these new consolidations. The impact on each segment is shown at the bottom of the slide. In housing, we expect more homes to be sold, but higher material and fixed costs are expected to reduce operating profit by JPY 800 million. In renovation, we plan to expand orders by increasing our sales staff, leading to an JPY 800 million increase in operating profit. In other, newly consolidated companies, including Ausbuild, whose consolidation is planned from the fourth quarter, are expected to contribute JPY 3.5 billion. Company-wide, we plan for operating profit of JPY 23.7 billion, an increase of JPY 2.9 billion. Finally, please turn to page 24 for an update on each business. First, the top left section covers new housing orders. In the first half, rising interest rates put pressure on customers' budgets, making detached homes challenging. However, strong sales of multi-family housing, where demand remains firm, helped orders reach 102% of the previous year's in value. We do not expect the market to recover in the second half. We will promote premium products in urban areas and more affordable products in regional areas to stem the decline in the number of orders and achieve 103% of the previous year's order value. Turning to renovation on the right, orders from existing home owners increased, driven by growth in exterior painting and kitchen renovations, as well as steady demand for air conditioner replacements. For renovation sales to external customers, we strengthen our sales structure by adding dedicated staff and aim for continued growth. Next, the bottom left section covers the residential business. In real estate, the number of rental units under management increased steadily, and our property acquisition and resale business also grew. In the second half, we will also realize the benefits of consolidating Mirai Toshi Kaihatsu from the fourth quarter and accelerate growth. The adjacent section covers community development business. Condominium sales are ahead of plan, so we have raised our full-year revenue forecast by JPY 1 billion. We will continue to actively develop new projects. Finally, in the bottom right section, we further accelerated growth investments in these priority areas. We have secured resources that were previously lacking through external sources and have also made progress in strengthening our management foundation. From the second half onward, we will ensure these initiatives deliver tangible results. That concludes the presentation on the Housing Company. I am Hirai from the Urban Infrastructure and Environmental Products Company. I will now explain our result. Page 26 is for performance trends. In first half FY26, overcoming Middle East raw material constraints, we secured spreads and inventories, achieving record high profits, net sales of JPY 123.2 billion and OP of JPY 13.2 billion, with an operating margin over 10%. For the second half, assuming continued non-residential market slumps and demand adjustment risks, we plan net sales of JPY 130.7 billion, OP of JPY 13.5 billion. For the full year, we aim for the highest profit update for the fifth consecutive period and the first-ever OP margin exceeding 10%. Page 27 for first half performance analysis. Net sales increased by JPY 11.2 billion and OP increased by JPY 5.1 billion. As for the gap against the July forecast, centering on pipe and building materials, we had anticipated a negative rebound to the increased shipment in Q1 from Q2 onward, but it was not the case, and volume and mix increased. Thanks to early penetration of new pricing and fixed cost shifting to the second half, both sales and profit finished above the July forecast. Page 28 is for variance analysis for the second half. We plan net sales increase of JPY 2.3 billion and OP decrease of JPY 1.6 billion. We expect negative volume and mix impact will continue, driven by ongoing weakness in the non-residential sector, specifically project cancellations, delays, and extended lead time due to labor shortages and rising construction cost, compounded by significant inventory adjustment in the market following the strong performance in the first half. Although price adjustment will offset the continued high cost for raw materials and procured goods, they are insufficient to cover the decline in volume and product mix, resulting in downward revision to both sales and OP versus the April plan. Despite such difficult circumstances, we will focus on securing spread and share increase through expansion of prioritized product sales to achieve our plan. Page 29 is for three strategic field. Regarding second half sales, due to large fluctuation from quarter to quarter, we have presented the average of Q3 and Q4. For pipe systems, the second half average sales are projected at JPY 30.1 billion, totaling JPY 60.2 billion, an increase in sales. For pipe materials, despite ongoing non-residential slumps and inventory adjustment risks, improved selling prices will boost sales. For CPVC, competition is intensifying in our main Indian market, so we will focus on expanding sales outside India. For housing and infrastructure composite materials, the second half average sales are projected at JPY 22.6 billion, totaling JPY 45.2 billion, up in sales. Although market conditions for the non-residential sector remain weak, we aim to gain market share in fire-resistant and non-combustible materials by expanding sales of new products and others. FFU continues to perform strongly with expanding adoption in Europe. For infrastructure renewal, the second half average sales are expected at JPY 12.3 billion, totaling JPY 24.6 billion increase in sales. For pipeline renewal in Japan, orders have expanded, centering on larger diameter pipes. Our market share is steadily improving. Overseas, we will focus on steadily capturing projects pushed from first half to the second half and winning new ones. Aqua Systems faces a decline in plants due to last year's large project completion, but is focusing on water supply panel tank replacement demand. The three bottom right graphs show steady growth in priority of expansion products overseas and growth-driving businesses. That concludes my presentation. Thank you. Hello, I am Yamashita. I am going to explain about our medical business. Please turn to page 31. In the first half of FY 2026, net sales were JPY 45.2 billion and operating profit was JPY 4.9 billion. Despite sluggish market conditions for diagnostic reagents in Japan and China, the impact of our profitability improvement measures helped us achieve year-on-year growth in both sales and operating profit. As for the revised plan for the second half, we expect sales of JPY 50.5 billion and operating profit of JPY 7.2 billion. We aim to achieve record second half profits by fully realizing the benefits of our profitability improvement measures, while also laying the groundwork for medium to long-term growth. Our current profitability improvement measures are scheduled to be completed in the second half. Next, on page 32, I will review first half performance. As shown in the chart on the left, net sales increased by JPY 1 billion year-on-year to JPY 45.2 billion. As shown in the chart on the right, operating profit increased by JPY 400 million to JPY 4.9 billion. The key factors are as follows. Our domestic and Chinese diagnostic businesses were affected by weak market conditions. In addition, some projects in pharmaceutical sciences were canceled. On the other hand, earlier than planned orders for our diagnostics business in Europe and the U.S., together with fixed cost controls, helped us slightly exceed the forecast made in July. Next, on page 33, I will explain the revised plan for the second half. As shown in the chart on the left, sales are projected to rise by JPY 1 billion year over year to JPY 50.5 billion. As shown in the chart on the right, operating profit is projected to increase by JPY 600 million to JPY 7.2 billion. We expect conditions to remain challenging in the diagnostic reagent markets in Japan and China. We also expect costs to rise due to the situation in the Middle East. Despite these conditions, we will continue to control fixed costs and maintain our operating profit plan as set in April. As shown in the analysis of operating profit at the upper right, although our diagnostics businesses in Japan and China will be affected by market conditions, we will work to secure new projects in pharmaceutical sciences. We will also fully realize the fixed cost savings from our profitability improvement measures and aim for record profit in the second half. Finally, on page 34, I will highlight the overview by business. First, diagnostics in Japan, shown at the upper left. In the first half, the diabetes domain grew, but results fell short of the April plan. In the second half, we will focus on expanding our share in clinical chemistry, immunoassay, and blood coagulation. Next, diagnostics overseas, shown at the upper right. In the first half, sales rose as demand in clinical chemistry and immunoassay shifted forward in Europe and the U.S. In the second half, we will further strengthen B2B alliances to drive sales growth. Finally, pharmaceutical sciences shown at the lower left. In the first half, the suspension of some orders led to a decline in net sales in the second quarter. In the second half, we will focus on securing new projects through collaboration. That concludes my explanation of the medical business.
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