This is Takeshi Horikoshi speaking. I will give you now a presentation about the first quarter of fiscal year 2021. First, on page four, I will explain about the highlights for the first quarter of fiscal year 2021. The exchange rate, JPY 109.9 to $1, JPY 131.7 against EUR 1, and JPY 17.0 to CNY 1 renminbi. Compared to the previous year, JPY depreciated against the U.S. dollar, euro, and renminbi. Although it is not shown on the slide, JPY depreciated against the Australian dollar, South African rand, and the Russian ruble. Consolidated net sales for the first quarter of fiscal year 2021 increased by 41.3% year-over-year to JPY 648.2 billion. Operating profit went up by 129.4% to JPY 61.7 billion. Operating income ratio increased by 3.6 points to 9.5%. Consolidated net sales increased through positive factors such as volume increase and positive contribution coming from foreign exchange rates. Operating income went up due to volume increase as well. Net profit increased by 151.6% to JPY 40.8 billion. Page five. This is the sales and profits by segment. Net sales of the construction, mining, and utility equipment went up by 39.6% to JPY 594.3 billion. Segment profit saw an increase by 131.3% to JPY 53.6 billion. Net sales increased thanks to volume increase and positive impact coming from foreign exchange rates. Volume increase contributed to improved profit. Net sales of retail finance climbed by 28.5% to JPY 20.4 billion. Segment profit was a 69.7% increase, reaching JPY 3.2 billion. Net sales increased due to an increase in new contracts resulting from expanded sales of the construction, mining, and utility equipment business. Segment profit grew, reflecting no more adverse effects of an extension of payments, which were implemented a year ago when the pandemic was spreading. For Industrial Machinery and Others, net sales rose by 63.2% to JPY 40.8 billion, while segment profit went up by 146.2% to JPY 4.2 billion. This was thanks to the recovery trend in the band for presses and machine tools for the automotive industry, as CapEx has rebound. Furthermore, as installment construction has completed at our overseas customer site, both net sales and segment profit increased. With respect for products for the semiconductor industry, as sales for the excimer laser-related business was strong, both net sales and segment profit increased. Going to page six, this is the status of sales by region for the Construction, Mining, and Utility Equipment segment. Net sales grew by 41.2% year-over-year to JPY 593 billion. Net sales increased in all regions, excluding China. As growth was stronger in the strategic markets rather than the traditional markets, the ratio of strategic markets increased from last year's 53% - 56%. Page seven shows causes of difference in sales and the segment profit of Construction, Mining, and Utility Equipment. Sales increased by JPY 168.5 billion year-on-year due to volume increase and the positive effects of foreign exchange rates. Segment profit increased by JPY 30.4 billion year-on-year due to increased volume, among others, and segment profit ratio was 9.0%, up 3.6 points year-on-year. Page eight shows Retail Finance. Assets remained almost flat year-on-year. New contract increased due to increased sales of the Construction, Mining, and Utility Equipment business. Revenues increased by JPY 4.5 billion year-on-year due to an increase in new contracts. Segment profit increased JPY 1.3 billion, reflecting no more adverse effects of an extension of payment, which were implemented at the time of pandemic expansion in the corresponding period a year ago. Page nine shows sales and segment profits of industrial machinery and others. Sales increased by 63.2% year-on-year to JPY 40.8 billion. Segment profit increased by 146.2% to JPY 4.2 billion, and segment profit ratio increased by 3.5 point to 10.3%. Both sales and profit of presses and machine tools for the automobile manufacturing industry increased, reflecting recovering demand backed by the regaining capital investment and the completion of installing machinery at overseas customers' plants. Both sales and profit of products for semiconductor manufacturing industry increased, supported by robust sales of the excimer laser-related business. As for the orders and sales of industrial machinery, let me explain with the appendix on page 31. Page 31 shows orders and sales index of industrial machinery. The chart shows the index of orders value for six months, divided by shipment value for the same six months. Komatsu Industries provide sales and service of press machine and sheet-metal machines. Affected by the delayed orders for large press machines, book-to-bill ratio was around 60%, but orders for medium and small press machines, sheet-metal machines, and maintenance service have been in recovery trend. Komatsu NTC provides design, manufacturing, and sales of machine tools, including transfer machine, machining center, and crankshaft processing machines. Orders have been low, and the BB ratio has been around 60%. Page 10 shows consolidated balance sheet. Total assets were JPY 3,790.3 billion, up JPY 5.5 billion from the previous year-end. Inventories were JPY 819 billion, up JPY 25.2 billion from the previous year-end, due to increasing demand for the construction, mining, and utility equipment. Shareholders' equity ratio increased by 0.5 point from the previous year-end to 51%. Net debt to equity ratio was 0.35. This concludes my presentation. Next, Morishita will explain about the fiscal year 2021 outlook. This is Morishita, general manager of the business coordination department. From this slide, I will explain about the outlook for fiscal year 2021 and the status of our major markets. Going to page 12, this slide is the outline of the projection for fiscal year 2021. In the first quarter, demand was robust in all regions excluding China, and yen was weaker than our initial assumption. Overall, both net sales and operating income was more or less within our expectations. Under these circumstances, we have not changed our full year projection. From the next page onwards, I will explain about the demand trend and projections of our seven major products. Going to page 13. From this page onwards, I will explain about the demand trend and projections of our seven major products. This slide shows the demand trend of our seven major products, including mining equipment. First quarter numbers are flash results based on our assumptions. Unit demand for the first quarter fiscal year 2021 is assumed to have increased by 19%, as shown on the top right. In regions excluding China, demand seemed to have increased by 50%. In China, there has been no demand this year coming from the post-Chinese New Year sale season being pushed to this quarter like it was last year. Furthermore, due to the slow infrastructure investment, demand declined year-over-year. In regions excluding China, demand plunged in the same period last year due to the spread of COVID-19. Due to a rebound from this situation, in most of the regions, demand sharply improved year-over-year. The total demand outlook of fiscal year 2021 is 0%-15%, unchanged from our April outlook. For regions excluding China, we are changing it to +10% to +15%. In the following pages, I will explain about the status of our major regions. Page 14. This is about the demand trend in Japan. For this first quarter, demand will increase about 9%, as shown in the upper right-hand side. Demand trend is solidly with firm demand coming from public works, with private sector construction recovering as well. As for the demand outlook for the full year, we have not changed our view from the beginning of April. As it has been in the first quarter, we assume demand will remain solid with 0%-5% range of increase from the previous year. Average operating hours per month for KOMTRAX in June was up 2% year-over-year. Going to page 15. This slide is about the demand trend in North America. Demand for the first quarter will increase 43% year-over-year. Demand increased mainly in residential and non-residential construction and roads and traffic infrastructure construction boosted by the reviving economic activity. Demand for rental continued to recover as well. We have changed the projection for the full year demand from April to plus 10%-15% based on the status of the first quarter. We assume that while demand for the energy sector will be weak, residential and non-residential construction and road and traffic infrastructure sector will drive the overall demand. Average operating hours per month for KOMTRAX in June went up by 4% year-over-year. Operation at the energy sector continues to be sluggish, but in rental, construction, and residential sectors, operation has gone back to the pre-COVID levels. Next is the demand for the European market at page 16. The first quarter demand will increase by 60% year-over-year. Demand recovered mainly in major markets such as the U.K., Germany, and France due to the restarting of infrastructure projects. The outlook of fiscal year 2021 is unchanged from April. As you have seen in the first quarter, recovery will continue in major countries. We anticipate demand will grow by 10%-15% year-over-year. Average operating hours per month for KOMTRAX has gone up by 9% year-over-year in June. Operating status has trended robustly with the restart of infrastructure projects. Going to page 17. Let me explain about the demand trend in China in this slide. This slide shows the demand for hydraulic excavators, excluding mini shovels. For your reference, we show the demand including Chinese makers. The demand growth rate is for foreign makers. Demand for the first quarter should be declining by 42% year-over-year. Total demand, including Chinese makers, will be declining by 16%. The post-Chinese New Year sale season will not come into this quarter like it has last year. Infrastructure investment has been sluggish. Due to these reasons, demand in this quarter declined substantially compared to the previous year. We have changed the outlook for demand for the full year from April based on the situation of the first quarter to -40% to -30%. Total demand outlook, including Chinese makers, has been changed to -25% to -15% as well. Average operating hours per month of KOMTRAX was -13% in June year-over-year. We think the main reason behind this is that construction was suspended all around China to prepare for the 100th year anniversary for the celebration of the establishment of the Communist Party of China. We will continue to observe the situation carefully. Going to page 18. Next is the demand for the Southeast Asian market. Demand in the first quarter will go up by 79% year-over-year. Growth in Indonesia, our main market, is anticipated to be around 200%, as shown on the lower right-hand side. Budget execution has been progressing for public works investment, and recovery has been continuing in construction, while demand increased for agriculture and forestry-related projects as well. In mining equipment, demand recovered for coal-related business. The outlook for demand for fiscal year 2021 will be 10%-15% up year-over-year, and we have not changed our outlook from April. For general construction equipment, we anticipate that demand recovery will continue in public investment in Indonesia and the Philippines. We also assume that coal-related demand will continue to increase for the mining equipment. However, there are some markets where the coronavirus is resurgent, so we will carefully observe the demand trend. Average operating hours per month for KOMTRAX in Indonesia was +18% in June compared to last year. Operation and construction-related work has recovered through public investment, and operating hours are increasing in agriculture-related projects as well. Page 19 shows demand for mining equipment. Demand in the first quarter FY 2021 increased by 46% year-on-year. Demand for iron, copper, and gold has been firm. Demand in Oceania, Latin America, and CIS increased. As the coal price level has been high, demand for coal recovered and the demand in Asia also increased. Demand in FY 2021 is projected to increase by 20%-30% year-on-year, kept unchanged from the projection in April. Demand for iron, copper, and gold will continue to be firm, and demand recovery for coal will also continue. Let me explain the orders and sales of mining equipment with appendix on page 29 and 30. Page 29 shows orders and sales of mining equipment. Chart shows the index of orders value for six months divided by sales in the same six months. Komatsu America, at the top, manufactures and sells super large dump truck. Orders for copper and iron are firm, and both orders and sales are on the rise, and the ratio is on 100% level. Komatsu Germany, in the middle, manufactures and sells super large hydraulic excavators. Orders for copper and coal are firm, and the latest ratio is well beyond 100%. Komatsu Limited, at the bottom, orders for Russia and Africa are firm, and the ratio is well beyond 100%. Orders for 100-ton plus dump truck for Indonesia have been increasing as well. Page 30 shows orders and sales of KMC mining equipment. Surface mining demands for copper and iron are firm, and underground orders have been picking up. Thus, ratio has been over 100%. Page 20 shows sales of mining equipment. In the first quarter FY 2021, sales increased by 46% year-on-year to JPY 246.8 billion. Excluding FX impact, it was the increase of 37%. Demand for iron, copper, and gold have been firm, sales in Oceania, Latin America, and the CIS increased, and demand for coal also recovered, pushing sales in Asia as well. The projection for FY 2021 is plus 17% year-on-year, JPY 920 billion, kept unchanged from the projection in April. Page 21 shows sales of parts. In the first quarter FY 2021, sales of parts increased by 31% year-on-year to JPY 150.1 billion. Excluding FX impact, it was the increase of 24%. As for construction equipment, along with the resumption of economic activities, in many regions, equipment utilization time returned to normalcy, and sales of parts also recovered to the pre-pandemic level. Mining equipment sales have been firm in Oceania, Latin America, and CIS, and in Asia, where sales have been sluggish due to the delayed overhauls, among others, by the restrained investment by customers, utilization have been recovering and sales increased. Sales in FY 2021 will increase by 14% year-on-year to JPY 576.7 billion, kept unchanged from the projection in April year. Page 32 and onward, let me explain the major topics. I will introduce the three initiatives for electrification. As shown on the left of the slide, commemorating 100th anniversary, we announced a fully electric mini excavator powered by lithium-ion battery as our next generation concept machine. This machine, with no operator seat, is remotely controllable. As shown in the center, we started a joint development with Honda to electrify the PC01 micro shovel, which uses the swappable Honda Mobile Power Pack. We aim to launch the product by the end of FY 2021. As shown on the right, we launched in Japan the PC78US-11 hydraulic excavator, which can be plugged into a power outlet. This machine enables the long hours continuous operation, and especially productivity improvement is expected in the operational site, such as industrial waste plants, where the round-the-clock operation is required. Page 33. In Southeast Asia region, we launched the PC210M0 20-ton hydraulic excavator series in July as a CE series for urban civil engineering works, including residential development and road construction. Starting in Indonesia and Thailand, we will deploy two model line strategy in Southeast Asia, in which we also market the standard model, PC210-10M0. With CE series PC210M0. While inheriting the quality and durability of the conventional models, we have achieved better fuel economy and a lower price by optimizing its specs exclusively for urban civil engineering work, including the four cylinder engines. By deploying the competitive products, we will aim to achieve the one of the focal activities of mid-term management plan, Dantotsu number one in Asia. Page 34. Komatsu will present exhibition at the MIN Expo in Las Vegas from September 13th. We plan to present a super large power agnostic mining dump trucks, which will support customers' initiatives to achieve zero emission, and demonstration of collaborative work between super large hydraulic excavators, remote control, and unmanned dump trucks. Furthermore, we plan to exhibit wheel loader with hybrid drive for surface mining, blast hole drill with automation function for surface mining, and a battery-type jumbo drill for underground hard rock. This concludes business results presentation. Thank you. We would like to take questions from the investors. First is from Nomura Securities, Saito, please. This is Saito speaking. Can you hear me? Yes, we can. I have two questions. One is about the changes in profit. I would like Mr. Horikoshi to answer my question. If you go to page seven, you can see the increase and decrease of the volume and others, and I would like to hear the breakdown, the pure volume and the others. In terms of others, I would like to hear about the components in the others. This is Horikoshi speaking. In terms of the pure volume, difference is JPY 44.4 billion positive. In terms of the cost difference, it's a minus of JPY 1.1 billion. There is a difference in the region mix and the product mix, that's JPY -1.4 billion. Number four is the difference in the unrealized gains in the inventory. Some people say that it's difficult to understand, but this is the JPY -8.1 billion. In others, there's JPY 4.5 billion in this. I think we talked about the container vessels, and there's a tightness in the availability of the container vessels. That's a JPY 2.3 billion impact within this. In terms of the cost difference, I think it's a net between the increase of raw materials, such as steel, and the improvement of your productivity. The steel product prices have started to go up substantially. In terms of the impact, is this going to be reflected already in the first quarter, or is it more going to be reflected in the full year? I talked about -JPY 1.1 billion. In terms of the steel products and the non-ferrous products, in terms of the raw material cost, the impact of this is JPY 3.1 billion. That is a negative impact of JPY 3.1 billion. Through cost reduction, we have offset that, and that bring us to JPY 1.1 billion. Understood. In terms of the difference of the unrealized gains in inventory, you talked about JPY 8.1 billion. I think you said for the full year, you're looking about JPY 10 billion. There's no necessity to change the full year outlook or there may some differences. Basically, it will show higher in the first quarter, so you won't have to change the full year outlook. Is that the correct understanding? At the beginning of the year, I said this will be a minus of JPY 10 billion, but I think it's going to go down substantially. Maybe about a JPY 4 billion of loss is what we're looking at right now. Understood. In terms of the region and the product mix, so in terms of the region mix, I think that China is going to go down, but in terms of sales composition, it's not that high. In terms of JPY 1.1 billion of minus, how much is the China impact? We don't disclose that far a detail, but i n terms of the region mix, I said on net basis it's $1.4 billion. In terms of the region mix, actually a positive impact. For instance, we have seen an increase in Indonesia or Latin America, which has a low margin, relatively speaking. It is going up, but on a net basis, in terms of the region, it's a positive contribution. The negative China is absorbed and overall, it's a positive. In terms of the negative impact, it's coming from the product mix. Yes. Because I think this has been happening from the last quarter, in the last fiscal year, the growth of the equipment is higher than the parts, meaning that equipment has a lower profitability. In terms of the product mix, that will have a negative implication. Understood. My second question is about Indonesia. United Tractors has announced their earnings, for instance, SANY has 26% of share, and you have 22% of share. I think your share hasn't changed from January to March to April to June. In terms of volume or in terms of sales value, in terms of your sales to Indonesia, I think if you consider the unit price of the hydraulic excavators and dump trucks is quite different. In terms of the sales ratio for each of these products, what is the percentage of each of these two products? Well, I cannot answer you right now, but in the first quarter, I think the mining equipment has increased because the coal-related business has gone up. The dump truck, the 100-ton class, I think it is true that the sales of this has gone up. I understand that the hydraulic excavators, its competition is quite fierce. In terms of average unit price, compared to the hydraulic excavators and dump truck, it's quite different. This is Morishita speaking. For the dump trucks in Indonesia, the volume zone is 100-ton class dump trucks. For the hydraulic excavators, it's a 20-ton class. In terms of the unit price difference, maybe that will be 7x or 8x difference between these two. Understood. The share based on volume is disclosed. In relation to that, you explained in your topics that in Indonesia and in Thailand, you're going to take a two-line strategy. Through this strategy, do you think they'll be able to recover your share? What area will you be targeting? If you talk of Indonesia, you have the coal and nickel in the mining business, you have palm oil, you have forestry, and you have urban civil engineering. There's different areas. More specifically, to maintain your share, what type of strategy are you going to take in Indonesia? Yes, I have explained in the topics. I talked about the PC200-10M0. When I explained about this, I talked that this will be the CE series. This CE stands for civil engineering. Internally, we decided that we should use this. As you can understand, civil engineering, and we are targeting civil engineering. The specs will match this type of needs. For the more heavy-duty needs, for instance, quarry or mining, or maybe this class, they won't be used that much in those type of area. For the heavy-duty usage, we recommend the current standard series, PC210-10M0. Understood. Thank you very much for answering my question. Thank you. Next will be from Morgan Stanley Securities, Mr. Ibara, please. Hello, this is Ibara from Morgan Stanley. Can you hear me? Yes, go ahead. Thank you for taking my question. First of all, you have not changed your full-year outlook, in terms of the overall outlook, when you conducted a telephone conference three months ago, you talked that the order trend is very strong and you are operating under full capacity. Because of this situation, the situation with the semiconductors, the parts procurement is an area, you were a bit concerned about this. I think you mentioned that. Three months later, now, in terms of the order situation or the utilization situation, and other industries or other companies are talking about the lack of semiconductors. Order utilization, procurement, compared to three months ago, what is the status for you right now? That's my first question. This is Morishita speaking. Thank you for your question. If you look at the market environment, as I said in the beginning, it's more or less in line with our expectations. Of course, there are some differences. For instance, China, trend is negative more than our expectations. In North America, actually, we have made upward revision for the outlook. Three months ago, we talked about the order trend being very strong. This basically is continuing. If you look at the contracts operation in most of the regions, they have gone back to the pre-COVID status. Of course, that said, there are some regions that we're seeing a spread of the coronavirus. We have to observe the situation carefully. Currently, in terms of orders, utilization, it's in line with the expectations. It's in the positive situation right now. In terms of the high utilization, is there any bottleneck in terms of such as semiconductors or the procurement, or you cannot be able to increase the capacity or not be able to improve your utilization? No bottleneck in those areas? Yes, I talked about the market environment, within the business operation environment, there are some concerns about the semiconductor situation. As Mr. Horikoshi has said, there is a tightness in the container vessel availability. In terms of how long this is going to continue, there are some concerns. In terms of semiconductors, to this point, we have not been impacted that largely, but partially with the engine-related products. Actually, we are producing some products in Malaysia, but there has been a delay due to lockdown. There has been a delay of the product delivery, and there has been some impact on the production. In terms of the tightness of the container vessels, as Mr. Horikoshi said, in terms of the shipment of the machine itself, there has been a delay, and there has been some negative impacts on the parts as well. There's still some concerns that we have to deal with. A lot of companies are citing concerns. One will be logistics, like container vessels, and another will be procurement, such as semiconductors or electronic components. Mr. Saito asked about this, about the steel product prices, the increase of raw material. I think a lot of manufacturing companies are citing these concerns. Based on what you're saying, as Komatsu, in terms of what you are concerned about, well, in terms of logistics, container vessels, et cetera, that will be the largest concern. In terms of the steel product prices, you have been able to absorb that through cost reduction and passing the increase to the products. The semiconductors, that impact is not large. There is risk, but you have been able to cope with that. Is that the way I should think about it? This is Horikoshi speaking. For this fiscal years, in terms of the outlook, I think the points are exactly as you have pointed out. In terms of the raw materials, such as steel products, the raw material cost increase, the picture is quite different from we have been thinking from the beginning of the year. It's going up sharply. In terms of container vessels, compared to the beginning of this year, we think that there'll be more impact. If you look at the semiconductors, financially speaking, there won't be that much of an impact coming from semiconductor supply shortages. These negative factors and how we can offset that through the volume increase, and how we can offset that through increasing our sales prices, I think that will be the focus. Currently, I think we will more than offset these negative factors. Again, this is a confirmation. In the operating profit of the first quarter, if we just simply divide the full-year operating profit and the first quarter, you already have 27%. It's a bit higher than the quarter. If you look at the traditional seasonality, I think the first quarter has been good. If you've been saying at the beginning of the year, your assumption is the 1st half will be stronger. That's the reason why it's within the expectations. Is that the reason you said so? Yes. In the first quarter compared to our disclosed outlook in terms of sales is about 6%. We have a 6% upside. In terms of operating profit, it's over about 10%. Simply speaking, if you just use that figure for the full year, maybe that level of percentage or maybe the upside we're looking at. Of course, there are uncertainties, such as in Indonesia, we have started to see the spread of the Delta variant and the shortage of semiconductor supply. I said that right now there's not much of an impact financially, but that is a source of concern. The raw material cost increase, how high it's going to be, we don't know. The lack of container vessels. There are some uncertainties. That's the reason why we're not changing a full-year outlook. Thank you for your answer. My second question, I'll be short about this, but in terms of the mining equipment parts, and Mr. Horikoshi has pointed out, the new equipment recovery has been faster, so it seems to be that the recovery on the parts side is delayed. If you look at the first quarter results, maybe this is due to the exchange rate situation, but we have seen recovery numbers and talked about the operation situation recovering at your customers. Compared to three months ago, is it correct to understand that we're heading to an improvement in this area of business? I think that the mining business is essential business, but in Indonesia and Malaysia, there are lockdowns Do you have seen any specific examples that at your customer site, the utilization of the mining equipment is going down? I don't think India has a lot of mining business, but specifically, we have seen a resurgence of coronavirus in the Asian region. Have you seen a decline of the operation of the customers, and has that impacted your parts business? This is Morishita speaking. In terms of the parts business, whether it be mining or general construction business, it is proceeding smoothly. In terms of the value, I explained about 25%-26% outlook for the full year. I think first quarter is in line with that type of outlook. Three months ago, I said that for parts, we are a bit concerned about the delay in the timing of this recovery. If things go smoothly, this will contribute as an upside. In that sense, April, May, and going into June, as the months go by, we have started to see a positive trend. As for mining equipment, as Mr. Ibara mentioned, as regarded as essential business, we have not heard about the shutdowns of mines due to COVID-19. In Indonesia, idle rate of dump trucks has been improving month by month. Therefore, the latest condition in Indonesia is positive. We'll continue to monitor cautiously how the pandemic develops, and hope it will gradually subside. Understood. Thank you. Next question is from Mr. Tsuge of Nikkei. Tsuge of Nikkei speaking. Firstly, partly due to rather low figures of the same period of the previous year, you mark the significant increase both in sales and profit this year. Compared to two years before, for April to June quarter, sales are up about 6%, but profit is down by almost 20%. I assume product mix or regional breakdown might be the cause. Would you comment on the difference in conditions between now and the corresponding quarter in the pre-COVID time? Horikoshi speaking. Sales in the first quarter FY 2021 are similar to those in the first quarter FY 2018, which is before FY 2019. Compared to that time, it is true that our margin is down. As for the reasons behind, first, volume is different and the regional mix changed also. Compared to that time, the proportional mix of Indonesia and China dropped, and raw material cost and transportation cost also increased. They are the special factors for this year, and their impact is about JPY 6 billion. Foreign exchange rate is slightly negative. As for the fixed cost, in the first quarter of this fiscal year, we paid support subsidies for all employees as a measure for pandemic, whose impact is close to JPY 3 billion. I think they are the factors behind. Understood. Thank you. Let me confirm. Indonesia and China, the regions of high margin dropped. Now, the U.S. and Europe are increasing? Yes. Through broad analysis, in the first quarter FY 2018, operating margin was remarkably high, around 15%, while now it is about 9%. The negative profit impact by market mix for the mid to long perspective seems to be around two point or less. The remaining 4% or so is due to the special short-term factors by quarter. Understood. Thank you. I'd like to have one confirmation on China. Demand in the first quarter was down by 40%, talking about your sales, both of overall and construction equipment alone, you had less declines. Is it because you are focused on mid to large equipment, and that contributed to the results? When you turn to page six, it shows that sales decline in China was -26.5%, while demand decline in foreign companies was -42%. The reason for the gap is, as you mentioned, we were benefited by our focus on large equipment of 20 tons or over. Understood. Thank you very much. Next question comes from Mr. Ouchi, SMBC Nikko Securities. Ouchi speaking. I have one major question about your thought on mining equipment. If you have, would you share with us BB ratio of mining equipment for the consolidated basis? Briefly, I assume it will be around 140% or 150%. As for the other series of mining equipment in the last three months, they were about JPY 240 billion. When I think about the future, the second half or next year, given the BB ratio of 150%, then we can expect the quarterly series of JPY 350 billion or JPY 360 billion, though it might be a little too aggressive. As a trend, can we think that sales mining equipment will be farther on the rise from the second half to the next fiscal year? Lately, as those for the delivery for farther down the road were also included, should we take the sales growth will be more moderate? Would you give us some colors? As compared with three months ago, although you said both hard rock and soft rock were solid, but by mineral, which one shows upside? I had an impression that a forecast on coal of KMC in Russia were rather conservative, and these would be the areas showing the upside. Would you comment on this, if you can? Morishita speaking. For your first question of BB ratio of the entire mining equipment, I cannot show that immediately. As for image, as you mentioned, in the second half, growth will be moderate and continue to grow steadily. Already, Komatsu Germany started to receive some orders for super large excavators, which are sales of the next fiscal year. As for changes compared with three months ago, in Asia, or especially in Indonesia, the unit price of coal of low calorie has been picking up, this is very robust by mineral. In CIS, mainly coal business, here we have been receiving orders. Do you see the upside on KMC as well? Excuse me? Do you see the upside on KMC compared with the initial guidance? I had such impression from your orders development. Yes. As for KMC, as shown by BB ratio, currently it is slightly over 100%. Understood. Thank you. We are running out of time, so we'd like to take the last question. Next question comes from Mr. Adachi of Goldman Sachs. Thank you. Adachi of Goldman Sachs speaking. I have two questions. First question is about small construction equipment. I may not have asked about that in detail before. As in North America, this business has been substantially strong, I'd like you to comment on this. I'd like to have the share of your small construction equipment in the total general construction equipment in North America and Europe. You announced the electrified equipment. Given that, would you comment on the competitive environment in North America and Europe? Morishita speaking. Internally, we call small construction equipment as utility equipment, I do not have its data vis-à-vis the general construction equipment. In North America, our small construction equipment business is not so aggressive. Selling mini excavators in some areas. In North America, general construction equipment sales are overwhelming. In Europe, small construction equipment market is large. We are striving to expand sales, though we have a long way to go. Proportionally, the sales ratio of construction equipment and the small construction equipment would be around 3: 1. Thank you. Let me confirm the number you mentioned, 3: 1 in Europe. Is it about construction equipment or sales of everything inclusive in Europe? The sales ratio of equipment, general construction equipment, and small construction equipment is 3: 1 or 4: 1. Understood. Thank you. You said that you don't have those figures for North America, but is it lower single digit or double digit? Does double digit mean 10%? Yes. It would be less than that. In North American market, as well as mini excavators, skid steer loaders, which are not very familiar in Japan, is a mainstay product. Komatsu currently does not produce this type of product which comply with emission standard. Partly due to that reason, sales scale in North America is rather limited. Understood. Thank you. Secondly, I'd like to ask about the profitability of mining equipment. Overall, you said that profitability was in line with the guidance, but talking about mining equipment separately, how do you assess that? Especially when we look back the FY 2019, when you had a similar level of sales of mining equipment, profitability was better than now. You talked about unrealized gain, expenses, and the mix between parts and equipment, and regional mix might have affected, and the size mix might have changed in equipment. Taking those into consideration, would you give a summary comment on profitability of mining equipment? As for mining equipment, there was no major change. Compared to two or three years ago, the difference is that currently the profitability of KMC is down due to lower coal demand in North America, and that squeezed the profitability. Therefore, as for that, for conventional Komatsu, profitability remains almost unchanged. Understood. If that is the case, unrealized profit and transportation cost, those one-off expenses made adverse impact. Due to this, current profitability seems to be lower than your previous figure. Is that right? For the conventional Komatsu, I do not see material deterioration. Thank you. That's all from me. Since it is the scheduled closing time, I'd like to close the Q&A session.