It's now time to start AGC's financial results briefing for the Q2 of fiscal year ending December 31, 2023. I'm Chikako Ogawa from the Corporate Communications & Investor Relations, serving as the moderator. Today's participants are Representative Director, President and CEO, Yoshinori Hirai, Representative Director, Senior Executive Vice President and CFO, Shinji Miyaji, and Managing Executive Officer, General Manager of Finance and Control, Toshiro Kasuya. We will first have CFO Miyaji go over the financial results for the Q2 of 2023. After that, CEO Hirai will explain AGC's initiatives for corporate value enhancement. We will take your questions. We are planning to end at 5:30 P.M. Your understanding and cooperation are appreciated. First, CFO Miyaji. Good afternoon, I'm Miyaji, the CFO. Please turn to page 3. These are the key points of today's briefing. Results for the first half of 2023 were affected by a decline in sales prices of PVC, but thanks to rising sales prices of automotive glass and architectural glass, as well as the impact of exchange rates, net sales totaled JPY 985.3 billion, an increase of JPY 7 billion year-on-year. Operating profit decreased by JPY 51 billion at JPY 64.3 billion due to deterioration in manufacturing costs and the impact of higher raw material and fuel costs. Net profit attributable to owners of the parent decreased by JPY 30.6 billion at JPY 40.6 billion. Sales forecast for the fiscal year has been lowered by JPY 100 billion from the previous forecast to JPY 2,050 billion. In light of the delayed market recovery for chlor-alkali products and the delay in launching of new CDMO lines for biopharmaceuticals in the U.S., operating profit forecast has been revised downward by JPY 40 billion to JPY 150 billion. Page 5. Net sales and operating profit for explained earlier. Profit before tax decreased by JPY 51.6 billion to JPY 66 billion. Profit for the period attributable to owners of the parent was JPY 40.6 billion. Results by segment. Please turn to page 6. Architectural glass posted higher sales and lower profit. Automotive posted higher sales and profit. In electronics, Chemicals and Life Science posted lower sales and profit. Page 7. This is the year-on-year variance analysis of operating profit. Sales volume, price, and product mix, minus JPY 7.8 billion. While sales prices of automotive glass and architectural glass rose, sales prices of PVC declined. Purchase price of fuels and raw materials, -JPY 10.9 billion, reflecting an increase in prices of raw materials and fuels, including soda ash. Cost reduction and others, -JPY 32.3 billion. Manufacturing costs worsened in all segments other than electronics. Operating profit decreased from JPY 115.3 billion to JPY 64.3 billion, down JPY 51 billion. Page 8. Consolidated statements of financial position. Comparing with the end of December 2022, total assets were JPY 2,957.9 billion, an increase of JPY 143.8 billion. The D/E ratio was 0.42. Page 9, Consolidated statement of cash flow. Operating cash flow was JPY 89.4 billion. Investing cash flow was -JPY 88.1 billion. Free cash flow as a result was JPY 1.3 billion. Others in cash flows from financing activities include JPY 31.5 billion expensed for the acquisition of treasury stock. Page 10, CapEx, depreciation, and R&D expenses. CapEx totaled JPY 105.2 billion, depreciation was JPY 85.9 billion, and R&D expenses were JPY 27 billion. Some details by segment. Please turn to page 12. Starting with architectural glass, net sales for the first six months totaled JPY 239.8 billion, operating profit JPY 18.6 billion. In Asia, shipments decreased in regions other than Japan, through the increase in sales prices, sales increased by JPY 7.8 billion year-on-year at JPY 75.9 billion. In Europe and Americas, although shipments decreased in Europe due to the economic slowdown, sales increased by JPY 6.1 billion to JPY 163.3 billion due to higher sales prices and the impact of exchange rates. As for operating profit, manufacturing costs worsened due to an increase in the unit price of inventory due to last year's operation adjustment in Europe. As for segment profit, Asia accounted for 40%, and Europe and the Americas, 60%. Page 13. Automotive. Net sales, JPY 240.7 billion, operating profit, JPY 10.2 billion. Shipments from the AGC group increased as the number of automobile production increased globally. In addition, higher sales prices, an improvement in product mix, and the impact of exchange rates contributed to a year-on-year increase in both sales and profit. Page 14, Electronics. Net sales, JPY 141.9 billion, operating profit, JPY 2.9 billion. Sales of displays decreased by JPY 8.7 billion to JPY 78.3 billion, due to declining shipments of LCD glass substrates. The shipments of LCD glass substrates for the latest 3 months increased by around 10% over the Q1, while sales prices remained almost unchanged. Electronic materials were affected by the slump in the semiconductor and smartphone markets, continued strong shipments of EUV photomask and the impact of exchange rate led to year-on-year increase in net sales of JPY 3 billion at JPY 63.1 billion. Operating profit declined year-on-year due to such factors as the impact of higher fuel and raw material costs, despite steady sales of electronic materials. Due to the impairment loss in the display business last year, depreciation expenses decreased significantly this fiscal year. Impacted by the deterioration in manufacturing costs due to lower facility utilization rates, improvement in cost reduction and others was limited. Ratio of ship sub-segment operating profit was electronic materials 140%, and displays -40%. Please turn to page 15. The progress of measures to improve display business earnings improvement. As you can see on the left-hand side, we are implementing business structure reforms based on the policies already announced. In addition, we will strengthen our competitiveness through technological innovation, and also we'll work on revisiting and revising our policy on pricing. By steadily promoting these three pillars, we aim to achieve ROCE of 10% or higher at an early stage. Please turn to page 16. Next, I will discuss the chemical segment. Net sales was JPY 282.8 billion, and operating profit was JPY 30.9 billion. Sales of essential chemicals decreased JPY 50.7 billion to JPY 200.8 billion, due to lower sales price of PVCs and other products. Performance chemical sales increased JPY 300 million to JPY 79.8 billion, due to higher sales price and the effect of FX, despite a decrease in shipments of fluorochemical related products. The ratio of the sub-segment to OP in chemicals was 50% for essential chemicals and 50% for performance chemicals. Please turn to page 17. I would like to provide a supplemental explanation of the market for chlor-alkali in Southeast Asia. The market for caustic soda and PVC declined due to the slow economic recovery, mainly in China and the United States. Although the price of ethylene, the raw material, declined, the PVC spread narrowed due to the significant impact of the sluggish product market. Please refer to page 18. Let me talk about the Life Science. Sales in this segment totaled JPY 68 billion, and OP was JPY 600 million. Sales of biopharmaceutical CDMO decreased by JPY 3 billion to JPY 68 billion, due to the loss of special demand for COVID-19, a decrease in funding for bioventures, and a decline in contract sales due to delay in the launch of a new biopharmaceutical CDMO production line in the US. Operating profit decreased due to the previously mentioned decline in sales, as well as the upfront costs associated with the expansion of biopharmaceutical CDMO capacity. On the next page, I will explain the current situation and business forecast for our biopharmaceutical CDMO business. Please turn to page 19. The biopharmaceutical CDMO business is performing well in Europe and Japan. It is struggling in the US, which is the largest issue. The biggest issue is the, the delay in the launch of new production lines in the U.S. We are taking drastic measures to normalize sales by the end of the second half of the year. We expect business performance to improve in 2024 and beyond, as the market recovery shall also contribute to this improvement. Please turn to page 20. Next, I will explain the performance of the strategic business. Overall sales of the strategic businesses for the first half totaled JPY 147.3 billion, an increase of JPY 800 million. On the other hand, operating profit was JPY 17.4 billion, a decrease of JPY 10.3 billion. In addition to the poor performance of the biopharmaceutical CDMO in the U.S., which I explained earlier, the electronic was affected by the sluggish semiconductor and smartphone markets. Please turn to page 21. This page shows the performance comparison by geographic segment. Please move on to page 23. I want to explain the full year forecast. As mentioned at the beginning of this presentation, we have made a downward revision to the net sales and OP against the announcement of February 8th. We now forecast sales of JPY 2.05 trillion, up JPY 14.1 billion, OP of JPY 150 billion, down JPY 33.9 billion. Profit before tax is JPY 107 billion, up JPY 48.5 billion, and profit attributable to owners of the parent, JPY 59 billion, up JPY 62.2 billion. FX assumption for the full year, revised to JPY 135 to the dollar and JPY 150 to the euro. We also revised our full year forecast for Dubai crude oil price to $81 per barrel. Please move on to page 24. I would like to explain the change in OP forecast more in details. Compared to the forecast announced on February 8th, the automotive business is expected to exceed the forecast. The chlor-alkali market and strategic business are expected to fall short of the forecast. Please be aware that the forecast figures in the waterfall chart are estimates in units of JPY 5 billion, the totals may not necessarily add up. Please turn to page 25. I will explain the key points of the revised forecast by segment. We have lowered our consolidated sales forecast by JPY 100 billion, with downward provisions in architectural glass, electronics, chemicals, and life science. We have lowered our consolidated OP forecast by JPY 40 billion, with an upward revision in automotive and a downward revision in electronics, chemicals, and life science. Please turn to page 26. I will now explain the key points of the second half forecast for each segment. For architectural glass in Asia, shipments are expected to remain firm due to increased demand for high heat insulating and shielding glass. In Europe, despite concerns about inflation and economic slowdown, we expect shipments to be supported by demand for replacement with high heat insulating glass to reduce energy consumption. Next is automotive. The continued recovery from the supply shortage of components for semiconductors and other products, as well as the effects of our ongoing pricing policy, will contribute. We expect shipments to be impacted by seasonal declines. Next is electronics and display. Shipments of LCD glass substrates are expected to increase due to a recovery in demand. The shipment volume of LCD glass substrates in Q3 is expected to increase by a low single-digit% compared with Q2. Shipment of specialty glass for display is expected to increase due to an expansion of orders from major customers. Among electronic materials, shipments of optoelectronics components are expected to increase during the demand season, despite the slowdown in the smartphone market. In semiconductor-related products, shipments are expected to increase, centered on photomask blanks for EUV. Please turn to page 27. Next is chemicals. In essential chemicals, the market is expected to recover gradually as the economy recovers. Not a dramatic recovery. In performance chemicals, the semiconductor and smartphone markets are slowing down, and the demand for fluorochemical-related products is expected to reach a standstill. However, the product demand for transportation equipment sector is expected to increase. Next is life science. Although small molecule pharmaceuticals and agrochemical CDMO are expected to remain firm, the impact of the disappearance of special demand for COVID-19 in biopharmaceutical CDMO and reduced funding for bioventures is expected to continue. In addition, as explained earlier, the new production line for biopharmaceutical CDMO in the US is expected to improve, i.e., normalize, in the second half of the year. Please turn to page 28. From 2024 onward, we expect to return to a growth trajectory due to a recovery in biopharmaceutical CDMO sales and expansion of semiconductor-related products, such as photomask blanks for EUV. Please turn to page 29. CapEx, depreciation, and R&D expenses remain unchanged from the initial forecast. This concludes my explanation. Thank you very much. Thank you. We now move on to CEO Hirai. I'm Hirai, CEO. I'd like to go over the initiatives for corporate value enhancement, including the forecast for the future. In 2021, I assumed this position of CEO, and I announced the vision for 2030. By providing differentiated materials and solution, we strive to help realize a sustainable society and become an excellent company that grows and evolves continuously. That is what we aspire to be. To realize that, we are providing both the well-balanced creation of social and economic value for growth, and sustainability management and business portfolio transformation are the two important parts of this. In terms of the business portfolio transformation, by promoting the ambidextrous approach, we are trying to build a business that is resilient to market fluctuations and has high asset efficiency, growth potential, and carbon efficiency. In the horizontal axis, we have the carbon efficiency. We have ROCE, which is a capital advance, efficiency in the vertical axis. The navy blue, these are the strategic businesses which are located on the top right. Both in terms of carbon efficiency as well as ROCE, it is in a desirable state. As we grow the strategic businesses, in addition to that, we intend to enhance the carbon efficiency and the capital efficiency of other businesses. This is how we intend to make a business portfolio transformation. Now, as a result of these initiatives, I have like to show this slide to you. As our CFO, Miyaji, has mentioned, in terms of strategic business, 2016 onwards, on a consecutive basis, we've been able to increase the sales and profit. However, this fiscal term, we expect to see a dip. However, on the mid- to long-term basis, we do believe the strategic business will grow. Now, in terms of the core businesses, they are bound to be affected by market conditions. However, we believe the profitability has been on the rise, thanks to price revisions and structural reforms, as you can tell on the bottom, on the bottom right. From here, I'd like to focus on the medium to long-term prospects of each business. First, in strategic business overall for 2023, there will be adjustment due to market conditions, but in the medium to long term, we expect these businesses to grow along with the market expansion. For electronics, EUV mask blanks are robust, but overall, our business, especially semiconductor and smartphone markets, are affecting, and we believe that 2023 will see a standstill. As for next year onward, in addition to growth of EUV mask blanks, with the recovery of the semiconductor market, we expect the trajectory to return to growth. As for life science, for this fiscal year, with the loss of the special demand related to the COVID-19 related products, as well as on a reduced in inflows of funds, we expect the impact to be felt. The delays in the launching of our new lines are being experienced in the U.S. in Bio CDMO. For 2024, as we expect these to return to normal, we expect the growth trajectory to return to what it used to be. As for mobility, there has been a delay in the business expansion in terms of CASE technology, but we expect the growth with the recovery. As for core businesses, for architectural glass, it used to be, we were suffering in this business, but with the price revisions and structural reform, we are seeing a stable situation in terms of earnings, and we are seeing a demand for renovation in Europe and elsewhere, and these are the plus factors. As for automotive, after COVID, difficult situation continued, but from the start of this year, semiconductor shortage impact on the production delay is gradually recovering. Through the pricing reform and the structural reform, we are seeing the effect of the measures to enhance the profitability that we have implemented in the past. As a result, the asset efficiency improvement and profitability improvement are expected in the future. As for display, since the second half of last year, we have seen a big drop in production volume, but starting this year, we are seeing a gradual recovery in volume. Structural reform is being implemented against that backdrop. We are also revising our pricing policy so that with the recovery in the market in 2024 onward, we would see the result of the measures. As for chemicals, in essential chemicals, the markets, especially, given the situation of the China market, we have not been able to see the recovery. Even in this market condition, we have seen the signs of recovery. As for performance chemicals, we have been affected by the semiconductor and smartphone markets up to this year, but starting next year, for essential chemicals, the gradual recovery in China and US markets are expected, and with that, we expect the gradual recovery. As for performance chemicals, in addition to the market recovery, the capacity expansion is to contribute to the improved profit. Now, what is under focus is the, the PBR and the issue, the discount of the, the PBR. In terms of AGC's PBR, we have not been able to exceed one, so we are trying to look at the correlation between ROE and PBR since 2008. As you can tell, these are the plotted ROE and PBR. As you can tell, there's a fairly strong correlation with each other. PBR improvement, it is essential that we improve and stabilize ROE. We do believe this is a top priority. PBR improvement has long been recognized as an important management issue. In terms of the TSE disclosure request, we have been conducting discussion, including at the BOD. Some of the current initiatives are listed here. Announced ROE target with an awareness of the cost of shareholders' equity, so stable ROE of 10% by 2030. Also, flexible share buybacks and a stable dividend payout ratio of 40% on a consolidated basis. These have been announced already as current initiatives. Issues to be addressed are listed here. Through our aggressive investment into growth businesses, we have been conducting business portfolio transformation. Growth businesses are expanding steadily. However, PBR remains low because of ROE target cannot be achieved due to restructuring costs, impairment losses, and etc. This, the current policy is in the bottom. We aim to achieve a stable ROE of 8% or more as early as possible by expanding the strategic businesses, with the core business serving as a long-term stable earnings base. Next slide, please. We operate with this AGC brands, brand statement: "Your Dreams, Our Challenge." We will continue to make our challenge to make contribution to the society. We ask for your continued support. Thank you very much. Thank you, Hirai-san. We will now take questions. If you wish to ask questions, please press the Q&A button and type in your questions. We will first respond to the questions that we have received in advance. The first question: In life science, full year profit projection has been revised downward by JPY 22 billion. How much of that is the impact of a reduction in the capital coming from the investors, and what should be the projection for future? In life science, especially the biopharmaceutical CDMO business, during the first half, we struggled, and we expect this to continue for the second half as well. JPY 22 billion difference. Much of that is in relation to our operation in the US. For biopharmaceutical CDMO, including the vaccine, there has been the special demand benefit from COVID, and that has disappeared. The single pack, single-use pack, which is our strength, has been leveraged for that. That part of the business is seeing the impact of the situation in the financial market, so the cash from investors are not flowing in. That's one factor. Another is, as I mentioned earlier, the Boulder, Boulder, close to Denver, Colorado. Through M&A, we have gained capacity from a pharmaceutical company. That was additional capacity that we acquired, and we are having a bit of a problem in the launch of the facilities there. We're hoping that we could launch the facilities earlier, but Stainless Bio and others had technical issues. Right now, in order to gain, regain the customers' confidence, we are taking a very cautious approach to verify the facilities there. That is most likely to continue until the fourth quarter, the end of the year, and that is going to have an impact. In Europe and Japan, the business are moving steadily, but the situation in U.S. is having a major impact, that is what we expect. Most of this difference of JPY 22 billion is in relation to our U.S. operation. Next year, the financial easing, monetary ease, you know, or tightening rather, we don't know how much that is going to continue, but we don't expect a full recovery. At the same time, in terms of the new line launches, that will have impact for this fiscal year, but we expect a recovery from that next fiscal year, we expect a rather sizable recovery for next fiscal year. Overall, this is a growing business, growing industry, so JPY 200 billion in sales for 2025 is our projection. Of course, the question is whether we can advance that by a year. JPY 200 billion in sales a year ahead, I'm afraid, would be rather tall order today. JPY 200 billion in 2025, we believe, we're confident that it is in our reach. Thank you. Next question related to the new production line launch and the CDMO in the US. What is the increase of the cost related to this? Miyaji-san, on this question. I have actually alluded to this in the previous answer. We cannot actually comment separately on how much of a cost incremental would it be, and what sort of impact would it pose on the utilization, or what sort of increase would it have on the upfront cost investment. We do not disclose separately for these projects, so hopefully, you can understand the situation. What has been most impactful right now is indeed the utilization deterioration. That is the worst factor. The second is a new production line delay. Those are the two major reasons. Thank you. Next question. In life science, operating profit rate is over 20%. When can we expect to return to that level? Again, Miyaji-san, please. We cannot really expect a rapid recovery for next fiscal year, so 2024 or later is where we expect recovery, so that in 2025, 2026, the capacity utilization would go up, and that would result in over 20% profit rate. Next question relates to the OP target for electronics, down by JPY 13 billion. If you can give us a display as well as for electronic materials, if you can give us a rough breakdown, that would be helpful. About 50/50 in terms of the breakdown, I would say. In terms of display, Q1 utilization adjustment was impactful, and also for electronic materials, it is doing all right, but of course it is still impacted by the downturn in the semiconductor and smartphone market. About 50/50, I would say, in terms of the breakdown. Thank you. Next. In semiconductor market, that, deterioration continues. For the second half, mask blanks and others, what are the likelihood of the supply of, semiconductor and other materials? When do you expect the situation to return to normal? Regarding mask blanks, the semiconductor market situation, the negative impact is not being felt. We see a steady growth. In addition to logic and memory, we are seeing more applications, and our shipments are strong currently, and we expect growth. In 2022, a temporary inventory adjustment was observed, but from the fourth quarter of last year, thereabout, we are seeing the recovery to start, and it's been progressing well this year. As we have been saying, we expect the 40% growth in sales year-on-year. On this business, the impact of semiconductor situation is really not affecting, so it's not an impact. As for CMP slurry and others, yes, there is some impact being felt today, but from the Q2, the customer's inventory adjustment is changing, and therefore we expect a recovery in the second half. Next question. All in all, the life cycle is still challenging. Still, in terms of sales in OP, it is expected to come down from last year. However, for electronic sales, you still expect a flat trend going forward. Why is that CMP slurry and also smartphone market? If you can give us a breakdown, impact from those, that would be helpful. Also, if you can comment on the trajectory for recovery next year onwards. Electronics, I have already touched upon in my explanation, smartphone unit has been on the decline. I think many of you are aware of this. Impacted by this smartphone, the blue filters, which has been the driver of this business, it has reached a standstill. In terms of EUV of semiconductors, it is still growing. However, CMP slurry and others, they have been impacted by the market situation and has been sluggish. That is why we do not expect a significant growth for this fiscal term. Having said that, though, gradually, this sluggish situation in semiconductor, we are seeing some recovery. Next fiscal term onwards, we should get back to growth trajectory. That is our expectation. Next, next question. Currently, the generative AI is making headlines. What do you think is the impact of generative AI on semiconductor materials? Generative AI-specific semiconductors are expected to boom, a high-end semiconductor overall is expected to grow, I think that will be accelerated, so that's a positive. Higher capacity utilization by high-end customers would mean more business for us because the demand is gonna grow. That's a plus for AGC Group. Thank you very much. We would like to move on to the next question about PFAS regulation. What would be the impact on AGC business? Within PFAS, especially the carbon eight, PFOS and PFOA, has come under a lot of scrutiny. The carbon of six or over nine. It has actually been expanded to these sort of fluorochemicals as well. Perhaps with lower the carbon number may come under the scrutiny of the regulation. Within AGC's groups, what will be impacted going forward? What are the potentials of? Miyaji-san, please. In terms of PFAS, P-F-A-S, we have projected the slide already. As many of you are aware, PFAS, P-F-A-S, that is, this is really a name for the entire group for the polyfluoroalkyl chemical substance. About 15,000 different substances come under this group. Or 12,000, rather. What has been under a major scrutiny right now, and of course, there's been a lot of report domestically. PFOS for the inflammatory agent, and this is under the regulation for PFOS. Of course, we have seen some litigation in the US as well. For this particular usage, PFOS, PFOS, we have no track record whatsoever in terms of production and sales. Therefore, our exposure is none, as far as PFOS, PFAS is concerned. For PFOA, again, this is another regulated substance. It is a water-repellent agent, is one of the representative example. We have seen some different generations. Historically, regulations become more strict. Application of this, we have actually withdrawn completely from this. That's where we stand right now. We do not perceive any major risk related to this PFAS regulation. What we are focusing is on the right-hand side, more on the resin-focused products, so they are not absorbed into human bodies, extremely safe in terms of its nature. When pharmaceuticals and agrochemicals, they are completely regulated by the regulation, the safety has been confirmed. Our focus is more on the right, and that's where we are growing. PFAS was in this grand scheme of regulation. We may have been categorized as part of the operator within it. However, in terms of our business focus, we are very much focused on more of a safe and highly regulated material. We do not perceive a large risk as far as our business is concerned. Thank you. Next question, again, is related to PFAS. Overseas, the litigation on the products are being made are, are reported. Is AGC not affected? Well, again, using this slide, the biggest issue today is PFOS products. Many litigations, lawsuits, especially the fire extinguishing foams. The litigations in the US tend to try to cover a wide area because we use fluorines. You know, there are so many companies that are being sued, and sometimes our name is included on that list, but actually, we have yet to receive any of the lawsuit notification. It's not a risk right now. Of course, we are consulting with the lawyers for appropriate response, and that will continue. Of course, in Japan, no litigations. We'd like to move on to the next question related to PVC and caustic soda. What is the outlook for the market? Also, if you can comment on its background. Miyaji-san, please. PVC, specifically, this is primarily because of, centered in China and also the demand in US. It definitely impacts the business in Southeast Asia. That's why we need to be careful of these markets. Right now, we are seeing some recovery in China, so perhaps we are bottoming out in terms of the market. However, we haven't reached a strong recovery, and we do not expect that to happen either. It will actually bottom out but still stay at the low level. Some of the economic stimulus package in China, gradually it, it has been, they have been, implemented. We do believe it is beginning to be implemented. Unless we have demand for construction, we shall not see a full-fledged recovery in the market. Within this year, perhaps the first half level will still continue for the rest of the year. Perhaps we may see some recovery, but our, our expectation is the first half, first half level will continue for the rest of the year. However, given the cost structure, we do not believe it will deteriorate going forward either, so there will be a gradual recovery in the second half, if not next year. That is our expectation. Thank you. Next question. In chemicals, second half operating profit plan, JPY 9.2 billion increase is projected over the first half. Could you divide them between essential chemicals and performance chemicals? Yes, this relates to what was explained earlier. In essential chemicals, at least given the current situation, we're not expecting a big recovery, and that is the basis of our projection. That projected increase is largely in the area of performance chemicals. Performance chemicals by nature are more focused on the second half, including increase in shipments and the increase in sales and profit are always expected in the second half. Right now, with the recovery in the automotive, we expect a growth in performance chemicals. Okay. We are accepting more questions, so please make use of the Q&A button. Please post your pick, questions there. We'd like to move on to the next question. This is related to automotive glass and architectural glass, more of the core business related question. You have been engaging in various restructuring initiatives and also the improvement of the supply and demand. These have actually posed a positive impact. Should we actually interpret it that way? Miyaji-san, please. The restructuring, as well as the betterment of the supply and demand, and also changing the market structure, definitely, the state is becoming more stable. Perhaps we can look at it separately. For architectural glass, and, we have Europe and also Latin America and Asia. Europe, as I have mentioned already, the energy saving is a major theme, so high performance and the insulating glass, the shipment has been quite strong. We do believe this demand will continue for some time. In comparison to that, the supply side, it is still tight because we cannot add on easily the furnace. We believe the positive situation will continue for some time. In Asia, in Japan, Asia has been quite brisk here. However, Asia has been brisk. However, Japan has been a challenge in the past, but right now, now we are seeing this major trend for energy conserving, and there has been shrinkage in the supply side. Therefore, the industry structure is dramatically changing, therefore, it is becoming much more stable. Now, moving on to automotive. It's been seen as we have a COVID-19 semiconductor and also disruption in the supply chain. While automotive was in the worst situation, but we are finally seeing a normalization. Volume, it's, it's still not back to the 2019 level on a full year basis, but perhaps next year we shall see a recovery to the pre-COVID level. We intend to fully manage this in terms of the, the cost and also the restructuring the price. We should be able to further grow this business. Thank you. Next question. In automotive, the production recovery is rather strong, in terms of the operating profit rate, it doesn't seem to be that high. Price revisions that you have been implementing since last year, what are the target operating rates, operating profit rates that you have in mind, in negotiation? In terms of ROC target, currently, what is the level? Well, there are 3 things that are needed for automotive: pricing, price, revision or appropriate level of price, structural reform, and higher functionality provided. Through these, we are trying to achieve 10%. Immediate effects will come from the pricing revision, and that is what we see today. Eventually, to reach 10%, appropriate price level and profitability recovery, and structural reform for that purpose, would be implemented together with a higher performance. Next year and the year after, whether we can achieve 10%, is a rather tall order, but we would like to achieve that by our target date. The next question relates to the CDMO, the new production line launch. What exactly is the issue, if you can give us more details? Miyaji-san, please. I think I have already touched on this beforehand. Single use is the manufacturing method that we have been focusing on. In terms of Stainless Bio, we do have small scale exposure, but in terms of a large scale the culture, this is one of the first projects that we have engaged in such a large size project. We have actually acquired this entity or capacity from a pharma company, and that's how we are engaging in this field. Of course, at the launch, there were some unexpected issues. A series of those have arisen. Because of the nature of the business, we have to make sure that the process is reliable. It was actually much more time-consuming than what we have initially anticipated. We do have customers already for this capacity. Of course, the customers would have issue if we cannot supply. The expectations continues to be fairly high from the, from that customer. We have been encouraged by the customers. It is not as if we have lost the, the confidence. As long as we can deliver a solid quality, we should be able to book the sales and of course, the profit as well. Thank you. Nick, moving on to the next question. One chemical company, in its, recent earnings briefing, stated that their customer have already completed the EUV mask blanks, evaluation, and that, the production will start. What do you think is the impact of that, in other words, the competitive landscape regarding the EUV blanks? Well, we're not in a position to comment on our competitors. Of course, we are aware that there are companies that are trying to enter the market, and we are on top of that. Next year or this year, should we see immediate impact? No, we don't expect a immediate change to take place. Next question. This relates to slide 19 as the biggest issue being the delay in the production line launch in U.S. What is the root cause of this? Is it specifically for that particular factory, or is it the actual facility process, or the maturity of the workers, or the yield? Would that actually lead to deterioration of the operating environment and hence, the utilization? We have 3 factors outlined on page 19. What is the overlap here, and what should be considered separately, if you can explain more in details. Miyaji-san, please. We have all the issues and the challenge for the current situation. In terms of the delays in launching, that is the factor I have been alluding to on the left-hand side. There's no crucial issue, let's just say. For this new facility, perhaps we were not completely experienced for the operation of such. We have not been able to fully utilize, so improvement is underway. With time, we should be able to resolve this. However, it is taking more time than initially expected. That is the reason. It is pretty much not in operation. That is why the overall utilization has been on the decline. At the same time, the cost is still spent, so that is why it's become a major issue. It is important that, if we can actually have a better yield, better skills, better expertise, then we should be able to improve the situation. Thank you. We have covered all the questions that we have received so far. Anyone wishing to make additional question? If so, please press the Q&A button and type in your question, please. Any additional questions? Looks like none. Apologies. Yes, there is 1 additional question that has just arrived. Again, on bios, pharmaceutical CDMO. What is the likelihood of completing the launching of the new lines by the end of the year? Are you saying, are you rounding up and saying the end of the year, or is it a really achievable timing? Again, Miyaji-san. Yes, we are taking a very cautious approach, so it's not rounded. ... rather confident with the timing that we are mentioning today. Of course, we will verify through solid, well-established process. We are proceeding very cautiously, so, we believe that we can resolve by the end of the year, and we're confident of that. Thank you. Next question relates to displays price revision. We'd like to hear more about that. Your 2 competitors already had officially commented on price increase, so would you also seek more than a double-digit price revision? Miyaji-san, would you answer that? We cannot comment on concrete details related to the price revision, but of course, given the current situation, we are trying to pass on the, the cost increase. Based on that, we are negotiating with the customers, so that we can revise the, the price. Thank you. Those are the only questions that we have received so far. Any other questions? Looks like none. With this, we conclude the Q&A session. If you do have some additional question, please forward them to our investorl relations personnel. Thank you very much for participating in our briefing despite your busy schedule. With this, we conclude the earnings briefing for the Q2 of 2023. When you close the Zoom screen, you will be guided to the questionnaire screen. We ask for your cooperation in filling it out in order to improve our investor relations activities. For further questions, please call 03-3218-5096. 03-3218-5096. Thank you very much for your participation.