Now we will start the fiscal 2023 results briefing. Again, please refrain from recording during the session. Presentation material is available on the top page of our website, www.nabtesco.com/en. Please note that today's conference is being recorded. First, let me introduce today's speaker, Mr. Atsushi Habe, Representative Director, Senior Managing Executive Officer, Corporate Planning, Accounting and Finance, Information Systems, and Corporate Communication Department. Mr. Yasushi Minegishi, General Manager of Corporate Communication Department. Mr. Habe will give a presentation, followed by a Q&A session. Hello, everybody. My name is Atsushi Habe. Thank you for joining, and, I'm more than happy to give you the brief. For your better understanding, after this, I go through interpreter. [Foreign Language] Good afternoon. Thank you very much for joining today. [Foreign language] First of all, I will give you a presentation based on the distributed material. Let me touch upon the results for the fiscal year 2023. Please go to page 3. [Foreign language] As for the sales, on the far left, you see the results for fiscal year 2022. On the far right, you see results for fiscal year 2023. In fiscal year 2023, sales increased by JPY 24.9 billion year-on-year to JPY 333.6 billion. [Foreign language] As for the sales, sales of Component Solutions didn't increase, but the sales for Transportation and Accessibility were strong. That's why we achieved this result in sales. [Foreign language] I will move on to operating income on page 4. [Foreign language] As for operating income, impact of one-time factors and drop in profit of Component Solutions was very big. As a result, compared to operating income of JPY 18.1 billion in 2022, in 2023, operating profit was JPY 17.4 billion. [Foreign language] Let me talk about the one-time factors and behind profit decrease and also the details of Component Solution business. [Foreign language] First of all, let me talk about the one-time factors. First of all, in Transport S olutions, their business, overall their business, automotive sales were sluggish. As a result, plan was not achieved, so we booked impairment loss for overall. And then Accessibility, their solution, we booked gain on exchange on land and their buildings. In addition to that, in ACB, their business, at, in Switzerland, at Gilgen, material cost and personnel cost increased, so we reviewed the plan, and we booked impairment loss of their goodwill. In Manufacturing, there we sold a subsidiary called TS Precision. In total, profit was down by JPY 800 million from those factors. [Foreign language] Let me move on to the component on page five. [Foreign language] Page five. There I will talk about the Component Solutions business only first of all. This shows a factor analysis between 2022 and 2023. The biggest factor is indicated here. Sales changed a lot, and in particular, in precision reduction gears. In the first half, there was high demand, but in the second half, demand rapidly dropped. So there was a very large impact there of sales change. [Foreign language] In addition to that, procurement cost increased as well. We did activity to pass on cost increase onto product prices, but there we were not able to do that 100%. [Foreign language] Let me move on to the forecast for 2024. Please go to page 7 for the market forecast. [Foreign language] In 2024, we expect business environment for the transportation, Transport Solutions, Accessibility, Manufacturing will be good. The problem is Component Solutions, their business. As for the precision reduction gear, I think it will be in 2025 or after when we will be able to see the recovery. Also hydraulic, the equipment we expect sluggishness in China, there will continue. For CMP, we expect the challenging situation will continue. [Foreign language] Page 8, please. [Foreign language] This shows full year forecast. Sales forecast is JPY 322 billion. Operating profit forecast is JPY 12.8 billion. Very difficult conditions are expected there. However, we want to maintain the dividend per share at JPY 80. [Foreign language] I will talk about the situation by segment, so please go to page nine. [Foreign language] On the top, you see sales. On the bottom, you see operating profit. As you can see, there we expect drop in sales of CMP. Both precision reduction gears and hydraulic equipment will be faced with difficult, the situation. We want to the offset the drop in sales of CMP with sales increase in TRS and the Manufacturing, but there we cannot do that perfectly. So in total, we expect sales will be down. [Foreign language] Please look at the operating profit on the bottom. For CMP, the sales drop impact, there is significant, of course. In addition to that, and we expect the cost will increase, so we will not be able to enjoy volume effect that would have the impact on profit. So in total, we expect operating profit of JPY 12.8 billion. [Foreign language] Page 10, please. [Foreign language] And in this situation, it is difficult, yeah, for us to explain to investors if the things will not be changed. We need to do something. With that in mind, yeah, we launched a Nabtesco, their profit improvement plan, Project 10, and CEO is a person in charge. The CEO is leading these activities. And so on page 11, I will touch upon the details of this project. [Foreign language] In 2021, our operating profit margin was 10%. We want to recover operating profit margin to this level as soon as possible. We intend to be back to this level in 2026. In order to do that, we are working on three measures. There are, first of all, the margin improvement on existing business. Secondly, optimization of fixed cost, and thirdly, contribution from the new businesses. We are promoting those three project activities. [Foreign language] I will go into the details. First of all, their number one margin improvement on existent their businesses. To do this, it is indispensable to improve the margin of their CMP. So I will focus on reduction product, precision reduction gear of industrial robot in CMP on page 12. On page 12. [Foreign lanuage] And there are the four graphs on this page, and these graph indicates outlook of industrial robot or their market, their, forecast for their EV or, usage ratio of automation in each country, and total demand is expected based on those. We think that, the automation, there will progress more in various countries in the world, and I think, the demand for industrial robot, will continue to their grow. I believe in that. [Foreign language] Next page, please. [Foreign language] I would like to share our analysis of precision reduction gears over the years. This page shows the trends of orders for precision reduction gears since 2007. [Foreign language] I will talk about the three major points, which are indicated on the top. First of all, the demand has grown at CAGR of 8% with fluctuations. Number two, 100 points exceeds the previous peak in five year, the increments, and that means expected to reach 500 points in 2027. Then, thirdly, in consideration of the current, the fluctuation, I think it will be in 2025 or 2026 when the peak will reach a level of 2021 or 2022. [Foreign language] Our share is not declining. I am certain that the big waves or big fluctuation will come again in 2025 or 2026. [Foreign language] Next page, please. [Foreign language] In order to improve profit of their precision reduction gears, there are three items we need to work on. The first of all, their price pass through. In this initiative, our top management is doing negotiation there with customer. They are hoping that our customers will accept our offer or our request for price increase. Number two, their cost reduction. There we ensure their comprehensive cost reduction project. Number three, we want to gain from utilization ratio when market there recovers. In preparation for that, there we are making the maximum use of their automation line and doing various things. We want to achieve recovery of operating profit margin to 11% in 2026. [Foreign language] Next page, please. [Foreign language] Yes. And this shows the number 3 point of Project 10, contribution of their new businesses. Under the current medium-term management plan, we are sowing seeds and seeding in phase we are in right now, and we are planning for starting phase as well. Currently, they are sowing various seeds and we want to harvest them by 2026. [Foreign language] On this page, you see field A, the field B, and field C. First of all, in field A, we are working on the new products in existing market. The field B is existing products for new market. Field C, we have new products in new market. We are making preparation there for all those three dear fields. Because of time constraint, I will not go into the details, but we are sowing various seeds and we are beginning to see the effect. So please, put expectation there on these activities. [Foreign language] I will skip detailed explanation, and I will now move on to the portfolio explanation on page 20. [Foreign language] Last year, in 2023, officially, internally, there we launched their portfolio, their project, and we visualized and evaluated their 36 business units. [Foreign language] As you can see, there are, for example, they are in rebuilding their businesses. We already achieved some results. For example, they are in aircraft equipment. Their situation was difficult in the past, but currently, there is a big wave. I mean, on both commercial aircraft and defense business are growing as well. And then those businesses are moving to the upper right-hand side in this table. And as for railroad vehicle equipment, we are working on their new project, and those are driving our growth. And overall, we change the content of business, and there we are moving this business into their new phase. [Foreign language] On the other hand, there are for TS Precision, and we divested this business to best owner. And regarding their portfolio, their management, it will be one year, yeah, in July. So based on the, review that we do, there we would like to, explain the situation in an easy to understand manner to investors going forward. That concludes my presentation. [Foreign language] Thank you very much. Now let's move on to the Q&A session. Please let us know your name and company from the Q&A button. I will appoint the questioner. If you are called, please unmute yourself and ask your question. Please let us know your name and the company from the Q&A button. So if you have questions, please let us know your name and company from the Q&A button. Yes, I have one question from Mr. William Nestuk. Could you unmute yourself? Okay, I have two questions. The first is about your exposure to China robot makers. If you do have exposure, what was the peak, and what is the current exposure as a percentage of robot gear sales? That's my first question. And my second question will be about railroads. But shall we do one question at a time? Yes. So we will ask, we will answer your question, one by one. Okay. Yeah. [Foreign language] First of all, regarding precision reduction gear, our exposure to China is not so high because we are the only doing business targeting high-end, their robotics, their manufacturer. Of course, there are many robot manufacturers, but there we are not dealing with their low-end, their manufacturer. So I think to the total precision reduction gear sales, China account, China robot manufacturer accounts for only 5%-6%, I think. Okay, thank you. What about material handling? If you divide your robot gear sales between material handling and robots, what is the breakdown? Thank you. [Foreign language] First of all, the material handling is for the logistics or distribution. The first of all, I would like you to understand that there are some of them have shapes of robots, and others do not have shapes of robots. Yeah. Oh, okay. But is material handling a fast growing area for you, or are you in higher end? Is material handling considered high end or is it just lower end? [Foreign language] [Foreign language] Sorry. I think that the application of material handling itself is growing very significantly there, and it will continue to increase. [Foreign language] And also, and it depends on application. Even if we say material handling in a word, there are, for example, material handling, therefore, and moving and goods or products, they are from left to right, and this is not high end at all. But, on the other hand, material handling is utilized to move things, precision the material for semiconductor as well. For such application, high end robot is utilized, so it is very difficult to say whether material handling itself is high end or low end. Okay, just one last question on this, but you intend to keep supplying both the entire material handling, or will you focus more on the, complex robots, or are you going to supply everything going forward? Do you have a strategy, a strategic, emphasis? [Foreign language] [Foreign language] We aim at both. Basically, the robot and business is at the extension of the conventional, their strategy. Of course, we will want to continue to grow the material handling as well as the application. Other application, for example, there are FA there as well, and there are many application, and products are changing, but there we want to their customized products to meet needs of customers. Okay, but I was going to finish this, but, automotive is larger than material handling, though, right? As a need for robotic for you. I just want to confirm that as the largest user, robotics is the largest, and then material handling is the second largest. [Foreign language] [Foreign language] Yes, and if you look at our sales for their robots, their number one is automotive. About 50% goes to automotive. Number two is welding and material handling. Okay, wonderful. Thank you. Okay, so, moving on to railroads, you said you, you have new projects coming. Are these—what is the percentage of projects in Japan and percentage of projects overseas? Can you give me any indication of what the breakdown is between domestic projects and overseas projects for rail? [Foreign language] [Foreign language] Please wait. And, first of all, there are, in railroad vehicle equipment business, we are mainly targeting Japan. And looking back on last year, 2023, 20% were for China. And we have a subsidiary in Italy, that accounts for about 10%. We introduced to you and the order that we received in Indonesia, and that is a business for rolling stock manufacturer, local Indonesian, local rolling stock manufacturer. And this is our first time to deliver, and it's also a big volume of, the business to that manufacturer. We want to, expand such projects going forward. Okay, so Indonesia is this year, not last year. Yeah, that's this year. And then my last question is: what about India? There, there was a lot of talk about Japan supplying, you know, India for their rail, for Mumbai. [Foreign language] [Foreign language] Sales are gradually, they are increasing, but, they're in packaging machine business, they are we are involved in food, they are packaging. And in particular, they, we are focusing on high-end pouches or spouts, for example. And those high-end products are not accepted, they're by all the countries yet. In some countries, their low-priced packages are fine. But going forward, I think their peoples, their consciousness about sanitation, they will increase going forward. So I think we will be able to grow this business. So demand itself has not been mature yet. Okay, thank you so much. That's it. I'm fine. Thank you. [Foreign language] Are there any other quick questions? If you have questions, please let us know your name and company from the queue, and the button. So we have still plenty of time. If you have any questions, please let us know. Yes. Thank you. Mr. Olivier Barrage, please unmute yourself and ask your question. Yeah. Thank you for taking my question. Referring to slide 14, you mentioned price transfers and this being occurring, you know, slowly for overseas manufacturer. I'm a bit surprised. I would have thought that raising prices with overseas manufacturer would be easier than for domestic manufacturers, considering the difference in trade customs, basically. So could you elaborate on why is it more difficult to raise prices to these overseas robot manufacturers and what it says about your competitive position there? Thank you. [Foreign language] [Foreign language] First of all, there is difference between Japanese customers and overseas customer. With Japanese domestic customers, there we have an annual contract, meaning that we renew prices there every year. So every year we can do the negotiation for change in prices. On the other hand, with overseas manufacturer, we have the multiple year contract, meaning for 3-5 years, the prices are fixed. So, and in this situation, there we need to ask them to accept our request for price increase despite the existence of their multiple year, their contract. But the overseas, their customers are not willing to, they accept our request for price increase. Please go ahead. May I ask an additional question? I'm looking at the page 12, indicating the industrial robot market, and gradual increase is expected every year, and that there is the adjustment as well. But there, do you think the demand for gear there will decline? And by looking at the graph, it is a little bit difficult to understand this volatility. [Foreign language] On page 12, and please look at the graph on the upper left hand side. This is based on their data of IFR, and their IFR, they announce their general demand forecast. Their demand forecast is right there from a long-term perspective. But, their IFR, it does not consider short-term changes. [Foreign language] For example, they are looking at the situation of this year, and there is a certain extent of their robotics demand. However, manufacturer, robot manufacturer, they have a so, so high level of inventory. Because of that, and their procurement, their volume of gear from our company, there is declining. IFR and data, there doesn't show in these their perspective, perspective. There are more than the fluctuation of our robotic manufacturer, our fluctuation is higher. Thank you. [Foreign language] Hey, we still, we still have a few more minutes. If you have any questions, please let us know. Mr. William Nestuk, please ask your question. The platform door business is very high, used to be very high margin for you, but because of costs, you said that it will be difficult in the future. But how can you lower your costs or what is your plan for the platform door business? Will you have to exit the business or, or is it because of cost that you cannot compete? What will happen to this business? [Foreign language] [Foreign language] As for their platform door business, there is difference in strategy between our domestic Japanese platform door business and platform door business overseas done by Gilgen. [Foreign language] First of all, as for the Japanese platform doors business, and it's been a very stable business and partly due to the government administrative guidance, and there are projects to increase automatic platform doors. Riding on the waves of this trend, we can expect steady growth in this business in Japan. [Foreign language] On the other hand, they are looking at the overseas their business, and there is Gilgen is doing business in Switzerland. And as you know, exchange rate, the Forex, the franc appreciated a lot. And so, because of that, and there was the exchange rate impact in businesses other than Switzerland, in other their countries, personnel cost increased, material cost increased. As a result, the situation there became very challenging. We are there trying to reduce cost, and we are there scrutinizing their each project. Basically, it is case by case, but there in some cases, there we make judgment not to take orders there. In some countries, for example, we are very selective in taking the orders. We sometimes make decision not to receive orders. Okay. My last question is just, what was Gilgen's sales last year for you? Or if just a general indication of what the importance of Gilgen is to the auto door division? [Foreign language] [Foreign language] Last year, sales of their automatic doors was JPY 96 billion. Out of JPY 96 billion, 35% of the sales came from Gilgen. Okay, that was very helpful. Yeah. [Foreign language] Regarding the importance of Gilgen for us, in Japan, there we are enjoying high market share in automatic doors. But in the past, there was no access to European markets, so we acquired Gilgen in 2011. We are doing business in Switzerland, and also there we acquired a sales company in France as well, and utilizing them, we are there expanding sales in Europe. And there are Gilgen in Europe and not just their platform door, and we are also there selling their automatic doors for buildings. Okay. So platform doors for Gilgen, what percentage of their sales is platform doors? Or, or for Europe, what percentage is platform doors? [Foreign language] [Foreign language] Last year, sales of total platform doors was JPY 7.9 billion. Out of JPY 7.9 billion, overseas sales were 60%. That 60% was almost all of sales of Gilgen. Okay, thank you. That was very useful. Thank you. [Foreign language] [Foreign language] Thank you. Thank you very much. It's almost time to finish. Next will be the last questioner. If there are no more questions, we will close this meeting. If you have any questions?