This is Horikoshi, CFO. I present the overview of the business results for FY2021. Page 4 shows the highlights of business results for FY2021. Exchange rates were 112.1 yen to a dollar, 130.4 yen to euro, and 17.5 yen to renminbi. Compared to the previous year, yen depreciated against dollar, euro, and renminbi. Though they are not listed here, yen also depreciated against Australian dollar, South African rand, and Russian ruble as well. Consolidated net sales were up 28% YoY to JPY 2,802.3 billion, marking the record high. Operating profit was up 89.5% YoY to JPY 317 billion, and the profit ratio increased 3.7 percentage points to 11.3%. Net sales increased due to volume growth, selling price, and the positive exchange impact. Operating profit also increased due to volume growth and improvement in selling price despite the material and the logistics cost increase. Net income increased 111.7% to JPY 224.9 billion, and ROE increased 5.1 points year-on-year to 10.9%. Cash dividend per share for FY2021 will increase from the announced JPY 80 in October to JPY 96, and consolidated payout ratio will be 40.3%. Page five shows segment sales and profit. Net sales of construction, mining, and utility equipment were up 29.8% YoY to JPY 2,564.3 billion, and each segment profit was up 91.8% to JPY 275.7 billion. Each segment profit ratio was up 3.5 points to 10.8%. Net sales of retail finance were up 8.2% YoY to JPY 71.8 billion, and each segment profit was up 62.7% to JPY 17.1 billion. Industrial machinery and other sales were up 10% YoY to JPY 188.3 billion, and each segment profit increased 38.3% to JPY 22.5 billion. Causes of difference in each segment will be elaborated later. Page six shows sales by region for the construction, mining, and utility equipment segment. Sales of this segment increased 30.5% from the previous fiscal year to JPY 2,558.8 billion. Sales improved in all regions except for China, and sales growth was especially significant in Asia, North America, and Latin America. As a result, the ratio of strategic markets rose to 56% from 53% in the previous fiscal year. Page seven shows reasons for the changes in sales and segment profit in the construction, mining, and utility equipment segment. Sales increased by JPY 588.4 billion from FY2020, mainly due to increased sales volume, improved selling prices, and positive effects of foreign exchange rates. Segment profit increased by JPY 131.9 billion year-on-year due to increased sales volume and improved selling prices despite the impact of higher material prices and logistics costs. The segment profit ratio increased by 3.5 percentage points to 10.8%. Page eight shows the highlights of retail finance. Assets increased, mainly affected by foreign exchange rates. New contracts increased by JPY 156.1 billion from FY2020, attributable to increased sales of the construction, mining, and utility equipment business. Revenue increased by JPY 5.4 billion year-on-year due to increase in new contracts and positive effects of foreign exchange rates. Segment profit increased by JPY 6.6 billion year-on-year due to increased revenue and improved valuation of used equipment after leasing against the backdrop of brisk market conditions. ROA was 1.8%, up 0.6 points from the previous fiscal year. Page nine shows sales and segment profit of the industrial machinery and others segment. Sales of this segment increased 10.0% from the previous fiscal year to JPY 188.3 billion. Segment profit rose 38.3% year-on-year to JPY 22.5 billion, and the segment profit ratio was up 2.5 percentage points to 12.0%. Both sales and profits increased for presses and machine tools for the automobile manufacturing industry due to the completion of installation for overseas customers. Sales and profits of products for the semiconductor manufacturing industry also increased owing to strong sales of the excimer laser related business. Let me explain the consolidated balance sheet on page 10. Total assets of JPY 4,347.5 billion represents an increase of JPY 562.6 billion from the end of the previous fiscal year, partly due to the weaker yen. Accounts receivable increased JPY 188.8 billion, and inventories increased JPY 194.1 billion due to increased sales and production in construction, mining, and utility equipment. Shareholders' equity ratio is up 0.9 percentage points to 51.4%. Net D/E ratio is 0.28. On page 11, I will discuss the progress on the midterm management plan. Despite the deteriorating external environment, including the COVID-19 pandemic, in addition to the start of a declining demand from FY2019, we've been steadily implementing growth strategies and structural reform to enhance corporate value, improving profitability and addressing ESG issues through our core businesses. As a result of these activities, we achieved the targeted growth and financial position. Profitability-wise, the three-year average operating margin remained at 9.7%, partly due to the deteriorated external environment. For efficiency, the three-year average ROE was 8.4%, below the target of 10%, but exceeded the target for the final year of FY2021 at 10.9%. For shareholder return, consolidated payout ratio of 40% or more was maintained. In terms of ESG, the company was listed in the Dow Jones Sustainability Indices and rated A by CDP for both climate change and water risk. We also made steady efforts to reduce CO2 emissions and increase renewable energy to achieve the 2030 target. In the retail finance business, both ROA and net debt-to-equity ratio exceeded the target. This concludes my presentation. Thank you. Next, Morishita will present the projection of FY2022 business results. This is Morishita, General Manager at Business Coordination Department. I'll explain the FY2022 business results projection and the key market conditions. Page 13 shows the outline of projection for FY2022. As for exchange rates, previously we listed the U.S. dollar, euro, and renminbi. Considering the impact on business results, we changed to list U.S. dollar, euro, and Australian dollar. In the projection for FY2022, the assumptions are 118 yen to a dollar, 129 yen to euro, and 88 yen to Australian dollar. Net sales will be up 7.1% year-on-year to JPY three trillion due to volume increase and selling prices and a positive exchange impact. Operating profit will be up 9.1% to JPY 346 billion due to volume increase in the selling prices and a positive exchange impact despite expected material price and the logistic cost increase. Profit ratio will be up 0.2 points to 11.5%, and net income will be JPY 226 billion. ROE will be 10.0%, and cash dividends per share will be JPY 96. Consolidated payout ratio will be 40.2%. Page 14 shows projection for segment sales and profit. Net sales of construction, mining, and utility equipment will be up 8.4% year-on-year to JPY 2,779 billion, and this segment profit will be up 15.3% to JPY 318 billion. Segment profit ratio will be up 0.6 points to 11.4%. Net sales of retail finance will be down 6.8% year-on-year to JPY 67 billion, and this segment profit will be down by 9.9% to JPY 15.5 billion. Net sales of industrial machinery and others will be down by 2.8% year-on-year to JPY 183 billion, and its segment profit will be down 11.5% to JPY 20 billion. I'll explain the causes of difference later. This page shows a projection of construction, mining, and utility equipment by region. Sales in CIS, China will be declining, but North America, Asia, and other region sales will increase, and sales will increase by JPY 298.2 billion to JPY 2,767 billion. CIS includes Russia and its neighboring countries. Given the extremely difficult future projection in Russia due to the impact of the situation in Ukraine, our projection is based on the assumption to sell only local inventory and already shipped goods as of the end of March 2022. Sales in strategic markets of CIS and China will decrease, but sales in North America in traditional markets will grow substantially, and that will push up the ratio of traditional markets from 44% in the previous year to 47%. Page 16 shows the causes of difference in sales and profit in construction, mining, and utility equipment. Sales will increase by JPY 214.6 billion YoY due to volume increase, selling price, and the positive effects of foreign exchange rate. Segment profit will increase JPY 42.2 billion year-over-year due to volume increase, selling price, and the positive effects of foreign exchange rate, despite material price and the logistic cost increases. Segment profit ratio will increase 0.6 points year-over-year to 11.4%. Page 17 shows projection highlight of retail finance. Assets will decrease mainly due to the impact of exchange rate differences at the end of the period. New contracts will increase due to increase in sales of construction, mining and utility equipment, and the positive effects of foreign exchange rates. As for revenues, sales will decline due to decrease in sales of used equipment after lease use, among others, and segment profit will decline due to the absence of impact of improved variation of used equipment after lease use, which were recorded in the previous year. This page shows projection highlight of industrial machinery and other sales and profit. Sales will decrease by 2.8% to JPY 183 billion due to decrease in medium and large press for automotive industry, despite increase in excimer laser-related sales for semiconductor industry. Segment profit will be down 11.5% year-on-year to JPY 20 billion. Here, let me turn to appendix page 60 to explain orders and sales of industrial machinery. This slide shows the index of orders and sales of industrial machinery. The chart shows the index. Orders in value for six months are divided by sales for the same six months. Komatsu Industries sells and provides service, press and sheet metal machinery. Due to orders received in medium and small press, sheet metal machineries, including welding robots and service works, latest index has been around 100%, but large press orders have been sluggish. Komatsu NTC is engaged in design, manufacturing, and sales of machine tools, including transfer machine, machining center, and crankshaft processing machines. Orders have been sluggish due to subdued or delayed capital investment in automotive and components manufacturers, but orders for machine tools for automotive industry and wire saw for semiconductor industry were firm, and the latest index has been around 150%. Page 19 and onward shows the actual and projected demand for seven major products in construction, mining, and utility equipment. Demand for seven major products, including mining equipment, is shown here. FY2021 fourth quarter is our preliminary estimate. From this time, demand in Southeast Asia market includes a unit number of Chinese manufacturers. As shown on the left, FY2021 global demand increased 9% year-on-year, and excluding China, demand increased 30% year-on-year. In China, in addition to the sluggish investment in infrastructure and real estate, demand was dampened by reactive downturn from the demand spike in the previous year, marking the drastic demand decrease year-on-year. In regions other than China, demand increased significantly year-over-year due to the weak demand in the previous fiscal year, affected by the spread of COVID-19, as well as the normalization of economic activities and the effects of economic stimulus measures implemented in each country. While demand in FY2022 is expected to decline in some regions such as China and CIS, firm demand is expected to continue in major regions like Japan, U.S., Europe and Southeast Asia, and the overall demand is estimated to remain roughly flat from the previous fiscal year, and the demand for the regions other than China is projected to increase 0%-5%. I'll explain the situation in major markets in following pages. This page is about the demand in Japan market. Demand in units for FY2021 is estimated to have increased by 1% over the previous fiscal year. This increase was attributable to steady public works and private sector construction. Demand for FY2022 is forecasted to increase 0%-5% from FY2021. We expect public works and private sector construction investment will continue to be strong and demand will remain firm. As shown at the lower left, the monthly average operating hours of KOMTRAX in March was down 3% YoY. Next page is about the demand in the North American market. Demand in units for FY2021 is estimated to have increased by 21% over the previous fiscal year. Demand increased mainly in residential and non-residential construction, as well as in infrastructure such as road and traffic with brisk economic activities. Demand for rental equipment continued to recover, and demand in energy sector also began to pick up. Demand for FY2022 is forecasted to increase 0%-5% from FY2021. Same as in FY2021, the overall demand will remain high, driven by the demand in residential and non-residential construction, as well as the demand in infrastructure. We will closely monitor the trend of demand, as higher interest rates by monetary tightening could cause a negative impact. The monthly average operating hours of KOMTRAX in March was up 7% year-over-year. The rental, as well as construction and residential sectors, have been performing steadily, and the operating hours of the energy sector continue to be on a recovery trend. This page is about the demand in the European market. Demand in units for FY2021 is estimated to have increased by 31% year-over-year. Demand increased in major markets such as the U.K, France, Germany, and Italy because of the sharp drop in demand in FY2020 due to the spread of COVID-19, and also because of the effects of measures to boost economy taken by the governments and large-scale infrastructure projects. Demand for FY2022 is forecasted to increase 0%-5% from FY2021. Same as in FY2021, we expect demand will remain high with the effects of economic stimulus measures and large-scale infrastructure projects planned in the UK, France, Germany, and Italy. The monthly average operating hours of KOMTRAX in March was down 3% year-on-year. Next is about the demand in China market. This page shows changes in demand for hydraulic excavators, excluding mini shovels. For your reference, changes in demand, including Chinese manufacturers, are also provided. The rate of demand growth is for foreign manufacturers. Demand in units for FY2021 is estimated to have decreased by 58% year-on-year, and the total demand, including Chinese manufacturer, is estimated to have declined by 40% year-on-year. Demand declined significantly due to the slack investment in infrastructure and real estate, as well as rebound from the sharp increase in demand in FY2020. Demand for FY2022 is forecasted to decrease 30%-40% from FY2021, and the total demand, including Chinese manufacturers, will be 20%-30% less than the previous fiscal year. While indicators related to construction investment have been increasing since the second half of FY2021, there has been no significant changes in the demand environment, and we expect the negative trend will continue. The monthly average operating hours of KOMTRAX in March was down 17% year-on-year. Its operations have been sluggish nationwide due to the negative trend that has continued since April last year, as well as the impact of the resumed spread of COVID-19. This page shows the situation in the Southeast Asia market. From this time, the number of units on this page include Chinese manufacturers' figures. Demand in units for FY2021 is estimated to have increased by 57% year-on-year. Demand increased in Indonesia, which is the largest market, as well as in Thailand, the Philippines, and Malaysia. Indonesia recorded a significant increase of 124% year-on-year. Demand for construction equipment grew in the construction sector due to progress in budget implementation for public works, and demand also grew in the agriculture and forestry sectors. Demand also increased for mining equipment for coal and nickel mining. Demand for FY2022 is forecasted to increase 15%-20% from FY2021. In Indonesia, the largest market, demand for construction equipment is expected to increase in construction and agriculture sectors due to the progress in budget implementation for public works, as well as continuing high prices for palm oil. Demand growth is also expected to continue for mining equipment for coal and nickel mining. We also expect firm demand in Thailand, the Philippines, and Malaysia. The monthly average operating hours of KOMTRAX in Indonesia was up 3% year-on-year in March. Operations in the construction sector was steady due to public investment, and operating hours in agriculture sector increased with the rise in palm oil prices. This page shows demand for mining and utility equipment. Demand in units for FY2021, shown on the left, is estimated to have increased by 43% over the previous fiscal year. Demand for iron, copper, and gold mining remained firm. Demand increased in CIS. Chile, Africa, and Oceania, and demand for coal mining increased in Indonesia. Demand for FY2022 is forecasted to be 0% to -10% compared to FY2021. Resource prices are expected to remain at high levels for copper, gold, and coal. While the demand will increase in Asia, demand in CIS will decline. Now let me explain the status of orders and sales of mining and utility equipment by the appendix on page 58 and 59. Page 58 shows the trends of orders received and the sales index in mining equipment. The graph shows the new equipment orders received divided by sales for the last six months. Komatsu America, shown at the top, manufactures and distributes ultra-large dump trucks. The index has risen to the 100% level due to an increase in orders from Australia and Chile. Komatsu Germany, in the middle, manufactures and distributes ultra-large hydraulic excavators. Orders for gold, copper, and coal mines have been strong, and the index is about 100% level. On a non-consolidated basis, Komatsu itself has been receiving a high level of orders for 100-ton class dump trucks for Indonesia, and orders for North America and the Philippines and other Asian countries have also increased. The index is now well above 100%. Page 59 shows the index trend of orders and sales of KMC's mining equipment. Surface mining orders increased for North America, Central and South America, and Africa. Orders for underground mining also increased, mainly for North America and Australia, and the index is at the 100% level overall. Moving back to page 26, I will explain about the sales of mining equipment. FY2021 sales increased 37% year-on-year to a record high JPY 1,082.3 billion. Excluding the impact of FX rates, sales increased 29%. Sales increased in Oceania, Latin America, CIS, and other regions due to strong demand for iron, copper, and gold-related products. The sales also increased in Asia due to increased demand for coal-related products. In FY2022, we expect sales to increase 4% to JPY 1,128.9 billion, supported by an increase in Asia and effective exchange rate despite the decrease in sales in CIS. Next, on page 27, I will discuss the sales of parts. FY2021 sales increased 28% year-on-year to a record high JPY 650.3 billion. Excluding the impact of foreign exchange rates, sales increased 21%. Sales of construction equipment increased in almost all regions except for China, as operating hours of equipment increased in many regions due to the resumption and increase in economic activities. Sales of mining equipment increased due to robust sales in Oceania, Latin America, and the CIS, as well as a recovery in utilization in North America and Asia. Sales for FY22 are projected to increase 6% year-on-year to JPY 2.1 billion. Page 28 shows projected capital and other expenditures. First, on the left-hand side, we have capital investment and depreciation and amortization. This time onward, investment in tangible fixed assets and depreciation expenses are also included. Capital expenditures, excluding investment in rental assets, are expected to increase year-on-year due to the expansion of DX investment in EARTHBRAIN and the response to the increase in production and sales of Gigaphoton. R&D expenses in the middle are expected to increase year-on-year due to forecast investment in electrification and automation. Fixed costs on the right-hand side are expected to increase year-on-year due to higher unit labor costs resulting from inflation and investments in mid-term management plan projects, although the impact of structural reform is factored in. I will now cover key topics on next few pages. In March this year, Komatsu started to introduce the PC01E1, a battery replaceable electric micro excavator jointly developed with Honda Motor Co., Ltd. The PC01E1 is an electric excavator that uses the Honda Mobile Power Pack e and an electric power unit as its power source to realize electrification on top of PC01 micro excavator, which is often used for piping, landscaping, agriculture, and livestock farming. The product can significantly reduce noise and exhaust heat, and is environmentally friendly with zero exhaust emissions. It's comfortable to work with in any environment, both indoor and outdoor. Page 30, please. Komatsu has signed an MOU with a major British resource company, Anglo American, to conduct a trial in 2022 of remote control of large bulldozers for mining applications. Through this trial at Anglo American's Minas Rio iron mine in southeastern Brazil, Komatsu and Anglo American aim to establish new solutions to the challenges of mine site safety and productivity. This remote control technology for large mine bulldozers enables the operator to see the front, back, left, and right of the vehicle body, as well as the working parts through multiple high-quality cameras installed around the vehicle body and working parts, and a low latency video transmission technology on the display of the remote control console, which shows the same images as in onboard operation. Page 31, please. Under the theme of working place of the future as the concept, the company's website introduces a full electric mini excavator that can be remotely operated through a remote controller. We have a short video today, so please enjoy it. Thank you very much. If we succeed in bringing this concept equipment into a practical use, we can realize the workplace of the future, which will enable people to work anywhere, even in a harsh environment. This concludes my presentation. Thank you. Next, Ogawa will present the mid-term management plan. This is Ogawa, CEO. I'll explain the new mid-term management plan, which was announced today. We announced our new series as well, so please refer to them at your convenience. The slogan of this new mid-term management plan is DANTOTSU Value, together to the next for sustainable growth. We celebrated 100th anniversary last year. We commit to quality and reliability and through manufacturing and technology innovation and partnership, we will step toward the next stage to develop the workplace of the future. We connect to the next generation with better future and to achieve the sustainable growth in the next 100 years. In these three years, we would like to set the foundation to create new values. This is our thought in the slogan. I'll explain the five points as shown here. Taking the opportunity of 100th anniversary last year, we clarified our purpose, values, and brand promise for customers and all stakeholders. With further business globalization and increased diversity of employees and stakeholders, by clarifying what Komatsu brand respects and our future direction, we will develop global and consistent business activity. Basic philosophy to achieve our purpose, value, and brand promise is management principle. It is to maximize the trust given to us by our stakeholders and the society through a commitment to quality and reliability. The strategy to execute this is a mid-term management plan that I present today. From here, I'll explain Komatsu vision in the mid-term management plan. DANTOTSU Value in the slogan means that to develop safe, highly productive, smart, and clean workplaces of the future with customers by combining DANTOTSU product, DANTOTSU service, and the DANTOTSU solution, and by creating new customer value, we will generate a positive cycle of ESG solutions and the improvement of earnings so that they will lead to sustainable growth. Manufacturing and technology innovation and commitment to quality and reliability are DNA of Komatsu, and they will enable us to differentiate and create value with customers. With this, we will aim to achieve sustainable growth. Workplace of the future that we aim to realize by 2030s is to make use of digital open platform, connecting data of land, people, machines, and material in the workplaces around the world through partnership and advanced technology to resolve challenges at the workplace and optimize operation. Video of the workplace of the future is available. Please view from the video QR code at right bottom. This slide shows roadmap to workplace of the future. Vertical access solutions shows a digital technology-based solutions, optimization level of customers' entire operational process. Horizontal access products show hardware machinery, and in addition to the high-tech level of automation and autonomous operation, technology level in CO2 emission reduction, including electrification, is also considered. We strive to create new value in solutions and provide safe, eco-friendly, and highly efficient products with high compatibility with our solutions and connect all customers' processes covering land, people, machines, and materials. In terms of safety, efficiency, and the environment, we realize the optimized operation and aim to achieve carbon neutrality in the workplace of the future. Komatsu announced a 2050 carbon neutral declaration last year to aim to achieve greenhouse gas reduction and business growth. Our scope expands beyond our workplace and the use of our products to cover the entire workplace of customers. Through Smart Construction, we will optimize customers' operation and proactively contribute to reduce CO2 emission in the society. Furthermore, forestry machinery business which support deforestation, reforestation, and felling, and Reman business which recycle and reuse Komatsu components, are positioned as circular business to contribute to CO2 reduction in society, and we continue to strengthen them. To achieve carbon neutrality in 2050 as a long-term target, technological hurdle is still very high, and the market of electrification is to be made from now. Therefore, it is most important to identify the technological roadmap toward the carbon neutrality and provide customers with all options to meet their environmental needs for future at this moment. Komatsu already has technologies to reduce environmental impact, including hybrid medium-sized hydraulic excavators, diesel electric ultra-large wheel loaders and dump trucks, and we will strengthen these technologies further. In future, machineries that can accommodate to any power sources, including fuel cell and hydrogen engines, will be required. For the commercialization of these products, we effectively leverage open innovation partnership and promote advanced research. On this page, changes in external environment are summarized that were used with the vision in developing the midterm management plan. The external environment is changing dramatically and uncertainty is rising more than before. We need to be prepared for various risks, such as economic security risks caused by intensified competition between the U.S. and China, geopolitical risks such as the current situation in Ukraine, pandemics like COVID-19, sustainability risks including climate change, and cybersecurity risks. Therefore, it is our challenge to strengthen our ability to address these changes in external environment and business risks, as well as to establish a sustainable growth foundation by considering the trends like digital transformation, carbon neutrality, and diversity and inclusion as business opportunities. In developing the midterm management plan, we conducted a materiality analysis of the company. We positioned areas where our materiality overlaps with stakeholders' materiality as the most important areas with the highest priority and identified four areas of environment, customers, employees, and ethics and governance. We will reflect activities in those areas in our growth strategy to create a virtual cycle of resolution of ESG issues and earnings improvement, which is the concept of the growth strategy in the mid-term management plan. We have reorganized our business portfolio to develop this mid-term management plan. Komatsu has been engaged in selection and focus of businesses since the early 2000s. Today, the company concentrates its management resources on construction and mining equipment, retail finance, and industrial machinery and others businesses. In the construction and mining equipment business, which is our core business, we will continue to invest with a focus on growth areas and control fixed costs and aim to achieve sustainable growth by improving both growth potential and profitability through the enhancement of solutions and value chain businesses with a view to M&A opportunities. In particular, we'll strengthen the forestry machinery business to make it the third pillar of our business next to the construction and mining equipment. In the semiconductor manufacturing equipment business, with growing demand in the semiconductor market, we'll promote investment to address the speed of market growth and maintain and improve the profit structure. In the industrial machinery business, which mainly serves customers in the automotive industry, we will work to improve profitability by securing stable after-sales service revenues and by capturing new demand generated by changes of customers' business case. This slide describes our medium to long-term direction in our business portfolio, as well as a view on the demand for construction and mining equipment, and the basic approach to the growth strategy in the mid-term management plan. Demand for construction and mining equipment is expected to grow moderately in the medium to long term due to population growth and urbanization in strategic markets, as well as firm infrastructure renewal investment in Traditional Markets. However, the demand volatility is expected to be very high in the short term due to various external environmental risks. In light of these factors, there are three management challenges for sustainable growth. Continuous investments in growth areas, further improvement of profitability, and enhancement of capabilities to address changes in the external environment. Through our growth strategy for both growth areas and existing businesses, we aim to achieve growth that exceeds industry standards and a top-level profitability in the industry, and build up corporate structure with resilience against demand volatility for sustainable growth. The growth areas on which we will invest with a focus are technologies such as electrification, automation, remote control, and key components and software solution business, and value chain business, including Smart Construction and open-technology platforms for mining, as well as the forestry machinery business and underground hard rock business, both of which are expected to grow. Such investment focus on digital transformation and carbon neutrality is estimated to be about JPY 150 billion in three years. We will also focus on M&A. Now let me explain the outline of the three pillars of our growth strategy to create DANTOTSU Value. They were formulated by backcasting from the vision and considering the continuity with the results and the challenges of the previous mid-term management plan, changes in the external environment, and the new management issues. The first pillar is to accelerate growth by innovation. This is an area to be developed by strategic investment for future growth. As shown in the roadmap for the workplace of the future, we will accelerate innovation in both products and solutions, and expand our solution business through new value creation to optimize customers' operations. In addition, we'll take on challenges of creating new values for both products and solutions as we constantly update the roadmap for carbon neutrality. The second pillar is to maximize earning power. We'll strive for further growth and profitability improvement through maximizing earnings opportunities in existing businesses by expanding our presence in emerging markets and evolving the value chain business. The third pillar is enhancement of corporate resilience. In the midst of increasing uncertainty, we will further enhance the resilience of our management base to support sustainable growth. We will enhance operational efficiency and risk management and build a diverse talent base so that employees with diverse background can work together in team to overcome challenges through enhanced engagement. Common challenges related to each of the three pillars are expansion of partnership, including M&A and open innovation, promotion of DX in all areas and functions to improve productivity and efficiency. This page lists examples of priority activities under the three pillars of the growth strategy. Under the acceleration of growth by means of innovation, we will promote DX Smart Construction in construction sites and open-technology platforms for mines, accelerate the development and the commercialization of advanced hardware with high compatibility with software solutions and platforms through automation, autonomy, and remote operation. In addition, we will take a challenge of becoming carbon neutral by introducing electrified machinery to the market, promoting Smart Forestry, and realizing factories with zero global environmental impact. Under maximization of the earning power, we will further expand sales of hydraulic excavators CE series with urban civil engineering specifications introduced last year, strengthen our product planning system in accordance with the regional needs, and expand our presence in growing markets, especially in Asia and Africa, by enhancing our lineup of attachments and other products. In addition, we will further strengthen forestry equipment and hard rock equipment, which are expected to grow in the future. In addition, through the next-generation version KOMTRAX, introduced last fiscal year, we will build a data-driven business model and strengthen support capabilities across the life cycle and expand the Reman and rebuilding business by leveraging in-house production of key components and the KOMTRAX fleet of 700,000 vehicles. Third, under enhancement of corporate resilience, we will expand the multi-sourcing ratio to build a supply chain resilient to external change in market environment and respond quickly to FX rates and demands by utilizing flexible cross-sourcing. In addition, we will assess economic security risks and the new challenge and develop a system to address them. In addition, we will develop a global brand strategy to improve external and internal brand engagement and promote the enhancement of the corporate brand. In terms of human resources, we will support diversity and inclusion throughout the company and invest, engage, and provide employees with opportunities to improve their skills because they are the sources of competitiveness. We will also develop digital talent who can drive operational reform using DX, AI, and other technologies and promote open innovation. This page explains our efforts to address ESG issues through the midterm management plan and growth strategy. This slide expresses the relationship between ESG issues and growth strategies, with focus on materiality or key issues. Last year, we have formulated our basic sustainability policy as a guideline for business continuity in our corporate activities, while stressing the importance of sustainability in environmental, social, and governance issues. This policy outlines our activities and actions in the three areas of people, society, and planet Earth based on our purpose, aiming to realize sustainable society and business growth. By addressing materiality in these areas, we aim to accelerate the virtuous cycle of resolving ESG issues and improving profitability at the same time, thereby achieving sustainable growth. This page shows our ESG activities and KPIs, as well as the relationship with SDGs. Komatsu aims to contribute to society through our business activities in accordance with the basic sustainability policy. In the midterm business plan, Komatsu has selected from the 17 SDGs, 10 new goals that are particularly relevant to the Komatsu Group's materiality. In order to steadily implement solutions to ESG issues through our growth strategy, we plan to set KPIs, track the status of their achievement, and disclose them in the integrated report. Lastly, management targets. We will continue to pursue higher growth than the industry average, industry-leading profitability and efficiency, and a financial soundness as defined in the previous midterm plan. For retail finance business, we will maintain the goals of the previous midterm plan, which stresses financial soundness and efficiency. We will also maintain our ESG management targets in terms of CO2 reduction and renewable energy usage by 2030, while using external ratings and assessments. As an aspirational target, we will add a new ESG goal of becoming carbon neutral by 2050. Lastly, we will continue to prioritize investment in growth strategies while maintaining a stable dividend payout ratio of 40% or more on a consolidated basis. That concludes my presentation. Thank you. From now, we will take questions. Mr. Isayama of Goldman Sachs, please. Thank you for your presentation. This is Isayama of Goldman Sachs. Two questions per person. I'd like to ask about the short term and the midterm plan. As for the short term, I'd like to confirm figures. In the components of difference in FY 2021 profit, volume and product mix, et cetera, impact is shown as JPY 87.9 billion, and your plan for FY 2022 shows a negative impact of JPY 43.3 billion. Will you give us the breakdown, Mr. Horikoshi? I assume the impact by material cost and the logistics cost surge caused by the production and shipment constraint in this fiscal year will be substantial. I'd like to have your prospects and the timing of normalization and how they're reflected in your budget for this year. I'd like to have the follow-up for this. This is my first question. Thank you. First question is a breakdown of JPY 87.9 billion segment profit change from 2020 to 2021, right? Pure volume impact was JPY 131 billion. Cost increase, including material cost, was JPY 50.4 billion. Region mix and the product mix impact combined was JPY +4.1 billion. Fourth factor was the unrealized gain on the intermediate stock and the difference of consolidated and the non-consolidated, their net impact was JPY +6.4 billion. This can be taken as the unrealized gain on intermediate stock. The fifth factor was due to supply chain disruption. Price surge of container ship was JPY -10.9 billion. There are some others, reduced claim expenses, JPY+ 7.7 billion. This is a breakdown of the difference in volume product mix, et cetera, from 2020 to 2021. As for the projection for this year, JPY- 43.3 billion. In the breakdown, volume impact is JPY +13 billion. Cost difference is JPY -46.8 billion. The region and the product mix combined is JPY -4.4 billion. Unrealized gain on the intermediate stock, for which the inventory level will be drawn down toward the end of the year, and the difference of consolidated and the non-consolidated, their aggregate makes a positive impact of JPY 17 billion. Container ship will impact on this year's result as well, and its impact is JPY -17.9 billion. Other negative factors will be JPY 4.2 billion. As for the steel cost increase, material cost surge was considerable last year. Cost increase in this year may not be as large as the previous year, and we presented a cost impact as a JPY -46.8 billion, but this may be rather conservative, so it may go up farther. This cost increase is incorporated in our forecast this time. Do you have similar projection for logistic cost as well? Yes, freight price itself is not rising much. With the volume growth, we project very large logistic cost for this year as well. Thank you very much. Secondly, I'd like to confirm some figures in the midterm plan as it was mentioned by President Ogawa. Please correct me if I'm wrong. As for slide 45, I think you talked about the growth investment of JPY 300 billion in three years. As for the investment in this midterm plan, is it JPY 300 billion as mentioned? Or is it additional JPY 300 billion on top of the regular investment of JPY 50 billion or JPY 100 billion to deal with the tight capacity? I'd like to have your comment on this. In particular, underground hard rock business was mentioned on this slide. Previously I thought acquisition was possible, but now because of increased cost and others, I think it is more likely for you to go organically. Let us know the timing of the launch of new products and the size of investment in underground hard rock business? I'd like to know how the mentioned JPY 300 billion will be allocated by segment. If possible, please let us know the entire CapEx during the midterm plan and is M&A cost included in that framework. I'd like to have your follow-up and the thought process. I said JPY 150 billion in three years. This JPY 150 billion is a growth investment mainly focused on carbon neutrality and DX. There are other investments separately. As for the hard rock business, including M&A, we are striving to achieve the sales of over JPY 300 million by 2024, and it remains unchanged from what we have already announced. M&A cost is not included in this JPY 150 billion. You do not disclose the size of investment to achieve the sales of JPY 300 million, right? I'd like to refrain from commenting on the breakdown, but the aggregate of these would make the investment in the three years. Thank you very much. One more question. Investment of JPY 110 billion is planned for this year. Are you going to accelerate the investment from this level or will you sustain the level? In the previous midterm plan, we said JPY 160 billion in three years. As a result, investment of approximately JPY 120 billion-JPY 130 billion in growth area was made besides the regular investment. For the upcoming three years, we'll continue to invest in almost comparable size. What I would like you to take note of is investment in intangible assets. In 2022, investment in intangible assets is substantial. We need to make considerable investment in solutions and platforms to promote DX. This is our focus area, as I mentioned before, that we are focused on DX and carbon neutrality. Well understood. Thank you very much. Thank you. Next, Mr. Tsuge of Nikkei, please ask questions. This is Tsuge of Nikkei. I have two questions. First, I'd like to have your comment on demand projection for this year by region. As for North America and Asia, compared to the demand growth projection, the sales projection of your company is stronger. What will be the key driver products? As for Asia, will contribution of CE series be increasing? Please let us know your projection on these. Morishita speaking. As for the demand projection, as I mentioned, sales in traditional market will grow slightly. As you correctly mentioned, the sales growth in North America and a part of Europe are strong. This is considerably related to inventory. In our perspective, wholesale inventory market is robust and the retail demand has been there. The order backlog has been built up. Market strength is sustained, and our wholesale sales are growing. This is a part of the major reasons why our growth is higher than the demand growth. As for Asia, the growth in Indonesia is strong. Its unit price is high, mainly in mining equipment, and that boosts sales. As for CE series that Komatsu launched in the previous year, would you tell us about their contribution and the sales expansion? CE series have been selling well since their launch. In Asia, share has increased by almost six points. In Indonesia, our share in January, February, March was almost comparable to those of SANY. I'm talking about a 20-ton class model. In March, our share was ahead of SANY, with the strong sales of this CE series. I'd like you to understand that mere share gain is not our interest. Through share gain, the population of machinery will increase, and it is much more important for us because customers will continue to use our machinery for five to 10 years, so larger population will lead to capturing value chain businesses, including parts, after-sales service, and overhaul. We do not react nervously to share gain or losses, but you can take that to expand the population, and it is a part of value chain business. Thank you very much. Next, I'd like to ask about the exchange rate. Today, dollar hit 130 yen per dollar. I think the foreign exchange rate impact on profit is close to plus JPY 100 billion this year. I think it might also lead to increase in material cost as well. How do you respond to depreciation of yen? For example, the review, production or procurement? I think you imply the possibility of relocation of production from overseas to Japan at the time of depreciation of yen. As of today, supply cannot catch up with demand. Factories and the suppliers in Japan are almost fully utilized. Rather contrary, we are actually trying to move our production in Japan to overseas to maximize cross-sourcing to meet demand. Komatsu has a policy not to react nervously to the immediate FX fluctuation. Leveraging our production strength of cross-sourcing, we hit the optimum balance between demand, production capacity, and foreign exchange to catch up with the customers' demand with our supply. About cross-sourcing, assume you began exporting from China to Russia and Southeast Asia last year. Do you expect it will grow farther this fiscal year? We said the export in the previous fiscal year was about 500 units for Russia and China, but our initial plan of cross-sourcing was about twice that number. This is partly because of the excess production capacity in China, but we have stopped shipments to Russia for now, so we allocate the capacity for other areas. With this situation in mind, we'll continue to utilize cross-sourcing this fiscal year, mainly for Southeast Asia, taking advantage of the excess production capacity in China. I'm very clear. Thank you. Thank you for your questions. Next, Mr. Saito from Nomura Securities, please start your questions. This is Saito. I have two questions. First one is about the projected sales of mining equipment on page 26. It is estimated as a 4% increase on a yen basis, so assume it will be a decrease in local currencies. Looking at the breakdown, equipment projection is flat year-on-year on a yen basis. Is this because you estimate sales to Russia will drop sharply while sales to other areas will increase about 10% or so? Or is it possible for other areas to record sales decrease of mining equipment as well because, for instance, previous year results were too good? I appreciate your explanation, as it seems mining equipment sales are not forecasted to grow much considering the high mineral prices. For mining equipment, there are differences in real sales volume and a difference due to exchange rates. The exchange rate will work positively, but it is a decrease in terms of sales volume. The impact of CIS will be especially large in the sales volume decrease. Latin America performed very well in FY 2021, and its sales volume are estimated to decline year-on-year in FY 2022, even though it will be still at high level. Such decreases are expected to be compensated by sales volume in Asia, mainly Indonesia and North America. Thank you. My second question is for President Ogawa about the new midterm management plan. On page 44, about the business portfolio, construction equipment and mining equipment are indicated to increase operating profit margin as a medium to long-term direction. You said you would maintain the industry-leading profit margin as you did in the previous midterm management plan. In fact, the profit margin of Caterpillar is higher than yours. I understand that the profit margin depends on sales volume, but if the sales volume and exchange rates remain flat in the three years of this mid-term management plan, how much do you want to increase the operating profit margin, in your opinion? Since you said you'd have the highest profit margin in the industry, we want to see an increase in the profit margin from the current level. I'd like to know if you have any measures to increase the profit margin in mining and construction equipment. As you have just said, it is true that our operating profit margin is lower than other companies, especially Caterpillar. There are some reasons for this, but I think the main one is the difference in regional composition. Caterpillar is strong in North America, while we are strong in Southeast Asia, where competition is fierce, and it is very difficult to raise the profit margin there. Another reason is the rising costs of raw materials and logistics that have become a burden for us. Unfortunately, in FY2021, we couldn't compensate for the cost increase by raising prices. In FY2022, we want to manage to address the cost increase by raising prices. I think I have mentioned this before, but our profit margin has fallen by approximately three percentage points from that of FY2018. I believe this is because of a structural reason, and there are only three measures to improve this situation. The first is to raise prices, the second is to improve costs, and the third is to expand the growth areas further that are being addressed in the mid-term management plan. We intend to raise the profit margin by promoting the priority activities in the midterm management plan. The priority activities over the past three years in the previous midterm management plan are estimated to contribute to the sales growth of about JPY 170 billion in FY2022. We intend to achieve sales growth close to this level over the next three years, as well as to reduce fixed costs as much as possible through structural reforms, so that we can increase the profit margin to close the three percentage point gap. Smart Construction may account for only a small percentage of the total sales, but as the solution business grows, Smart Construction would contribute to profit margin improvement in the long run, even if in a small scale. Is this a correct understanding? You may think in that way, however, the Smart Construction business is still in its infancy, so we need to put more efforts into it to make it larger. It is especially important to expand it overseas for our future Smart Construction business, as Japan will not become a very large market for it. We established a new company called EARTHBRAIN last year, and it will play a central role in overseas development, and we have opened its new office in the United States. Thank you. Thank you for your questions. Next, Mr. Miyagi from Mizuho Securities, please start your questions. I have two questions. Earlier, you mentioned $300 million. I would like to know about the current scale of the underground mining equipment business, such as the scale of sales or the level of profitability. It is okay to quote actual results in the fiscal year under review, or you can use this metrics of business portfolio. Appreciate if you could explain about it as much as possible. Thank you. KMC is basically responsible for the underground mining equipment, but its sales have decreased by about JPY 50 billion, especially since we acquired the company in 2017. Most part of the decrease comes from the coal mining in North America. The current scale of underground mining equipment business in dollar terms are about $1.3 billion as the actual value for fiscal year 2021. Okay. How about the level of profitability? Can you tell me either in an absolute value, like in percentage, or by the position in your portfolio? KMC was in a very difficult situation in the first quarter of 2020 due to the pandemic, but it has made a lot of progress in structural reforms. As we have announced, for instance, the sale of its conveyor business and the closure of its plant in North America. Such structural reforms have worked, and its profit margin has been rising considerably. Its profit margin has recovered to a very good level. Although it is not as good as the whole mining business, it is better than that of construction equipment business. Okay. You mentioned the scale of business was $1.3 billion, but how much of that was for hard rock equipment? The current sales of hard rock equipment are JPY 14 billion-JPY 15 billion. We will include the sales target for hard rock equipment for fiscal years 2022, 2023, and 2024 in our integrated report to be issued in September. As I said, we are currently working to achieve KPIs of $300 million by FY 2023 and $375 million or 10% market share by FY 2024 through both organic growth and M&A. You mean you aim to achieve $375 million and 10% market share in the fiscal year ending March 2025, the final year of the midterm management plan? That is correct. I have another question about the profitability of hard rock equipment. You earlier mentioned that the profitability of KMC or underground mining equipment as a whole is now at a higher level than that of construction equipment. If you look at the hard rock equipment business only, its profitability has not come to that level yet, considering the upfront investment and other expenses. That is correct. My second question is about page 44. I'm sorry for my lack of information, but in your medium to long term initiatives for the industrial machinery business, you mentioned strengthening automotive battery manufacturing equipment business to capture new markets by addressing CASE. What exactly are you doing in this space, and how are you going to expand this business? This is related to one of our group companies called NTC. NTC's core business was originally to manufacture machine tools for the automotive industry, but we are now focusing on the development and sales of manufacturing equipment for car batteries at NTC to grow sales and profits. We are currently reviewing its business portfolio. NTC is mainly dealing with machining of engines, but we assume its machine tool business will shrink as vehicle electrification evolves. We will focus on development, production, and sales of battery manufacturing equipment to replace its current business. We have already received several orders. Understood. Is that for downstream process of batteries, such as battery cells and battery packs, or the production of battery materials, such as cathode materials, anode materials, and separators? Which is the case? Well, it's for production equipment for some parts of cell manufacturing processes. Understood. Thank you very much. This is Horikoshi speaking. Let me correct my earlier comment. I said earlier that the JPY 500 million drop was against FY 2017, but it was against FY 2018, which was the peak year. Okay, thank you. Thank you very much. Next question, please. Ms. Abe. Thank you for your presentation today. I am Abe from Nikkan Kensetsu Tsushin Shimbun. I have a question about the product development roadmap to achieve carbon neutrality discussed on slide 41. I believe that each company is working very hard to achieve this goal, especially in the current fiscal year and during the current midterm management plan. What kind of machinery or equipment do you plan to launch? What is your target markets, and what is your focus areas? I would appreciate you answering this as much as possible. As I mentioned earlier, markets for electrified construction machinery and electrified mining machinery do not exist yet, which is very different from the case of the automobiles. We are proceeding with the R&D activities with certain assumptions. One of them is the market for utility equipment or small size machinery, which has relatively low technical difficulty, will be established first. It will be established and also first in Europe, which is the largest small size machinery market and has high awareness of climate change. That's the first assumption we have for EV development. The second assumption is for mining machinery. Our major mining customers have already told their stakeholders that they would achieve zero emissions by 2050 or 2060. We are already under pressure from these customers to develop electrified mining machinery or equipment. In summary, our assumption is that the markets for the smallest and the largest sizes of construction machinery will be built first, and we are prioritizing research and development for these markets. As to the middle sized and the large sized machinery, unfortunately, we don't have a clear vision yet. Technically speaking, there are various challenges, as I mentioned several times in the past, such as output power. For example, PC01, which Morishita introduced to you earlier, has an output of about 3 kW. On the other hand, a larger dump truck, which is used in mines, require an output of about 1,000-1,500 kW. In terms of operating hours, small equipment runs only a few hours a day, while the mining equipment which is large, runs 24 hours a day. Another challenge is infrastructure such as power supply and hydrogen supply. Finally, there is cost. These challenges are serious for medium to large sized equipment. At the moment, it's unclear as to when and where the EV market will emerge, or if it doesn't, Komatsu may have to build its own market. On these points, we will explore various approaches going forward. The most important point is that we as a manufacturer build equipment and offer various options to meet the needs of our customers when they respond to environmental issues in the future, even if it doesn't help short-term sales and profits. I believe that's the responsibility of a manufacturer. In order to do that, we need to promote advanced research and development in related fields. I hope I have your understanding. Yes. Thank you very much. Thank you. Next question, please. My name is Ibara from Morgan Stanley MUFG Securities. The first question is about Russia. Please let us know if there are any changes, although it might depend on the future situation. I suppose you have suspended some of your supplies at the moment. Do you plan to suspend supply of parts and services for your equipment that have been already sold in the past as you run out of your inventory? Could you share with us your policies if there is any? Suppose that, you are to close down going forward, is there any risk of impairment losses? Are there any risks of your plant assets or accounts receivable? Of course, I understand that the situation changes every day, but do you have any hypothesis? Could you tell us about the current situation? That is my first question. First of all, the current situation is unchanged from what we had reported to you in a press release dated April the 8th. Due to supply chain disruption and the financial and economic unrest, we have suspended operations at the local plant, as well as shipments from Japan. Having said that, I'm personally concerned about the potential suspension of service activity and parts supply, because when that happens, we would not be able to ensure the safety of customer sites. An extreme case or example would be accidents involving death. I'm very concerned about that and because of the suspension of service activity and parts supply. This may lead directly to such accidents. That's why I'm concerned. Such accidents also impose risks to us as a manufacturer, including product liability issues. We will have to decide how to respond to such issues in the future while watching the situation carefully on a daily basis. We do not have a clear view at this point in time. Another important point is that there are thousands of people in Russia, including our employees and agents. I believe we are responsible for protecting their safety and job security. At this point in time, we are not considering a complete exit from the Russian market. Of course, export regulations are becoming tighter every day, so we may have to scale back some of our operations. Except for that, we are not considering a complete exit. I think we will decide on our policy depending on the future situation. Regarding the risk of impairment, the largest asset we have is in retail finance, especially accounts receivable. However, there is a huge shortage of equipment in Russia at the moment. In addition, with the ongoing fall of the Russian ruble exchange rate, people want to convert their currency into goods. Therefore, even if the accounts receivable are not paid and we have to take back our products, we can still sell them in the second-hand market, so there's no major risks in that area. As for the risk of impairment at plants mentioned by the president, KMR plant does not have such a large asset base to begin with, so I don't think we have a large exposure there. Another is inventory. Our current assumption is that the inventory that we have right now will be sold for the products that we had already shipped in the past and for the inventory. We haven't anticipated or factored in any major impact. I thought that accounts receivable was the highest risks. If the credit is recoverable, it probably won't be a problem. Thank you very much. My second question is about the mid-term plan. One is fixed costs. In the previous midterm plan, partly due to COVID-19, there was no major change in the fixed cost in terms of the three-year total. This time, however, for the year one, JPY 33.7 billion is already projected. Given the global trend of inflation and other factors, I suppose you are expecting a very different figure from the past trend. What do you think about the next three years? Are you running the business with the same expectation as for the first year? If you could comment on fixed costs, I would appreciate it. Regarding fixed costs, as mentioned by the president in the context of the previous midterm plan, we are promoting structural reform right now. What the president stated at that time was a gross impact of JPY 17 billion in 2022, and JPY 21 billion in 2024, compared with the level of 2019 as a result of structural reform. The program is running currently in line with the expectation. However, if you look at the figures for 2022, for example, with the ongoing inflationary trend, costs are higher, so we are assuming an increase in personnel and other expenses. Next is the impact on the midterm management plan. We do not include such an increase in costs. As I just mentioned, our basic policy is to absorb cost increases as much as possible through structural reform. So far, there are no additional items expected from structural reform, so we are just carrying out what we had already planned initially. If that's the case, you are expecting a fairly large amount, JPY 33.7 billion for the first year. With the impact of structural reform, it will be lower, for example, to ten billion yen or twenty billion yen for the next year and year after that. Do you expect a more moderate level? This is just an assumption, but we do not see this inflationary situation continuing for a long time. It seems that the United States will raise their interest rates considerably. Our view is that, inflation will be put under control to some extent by such rate hikes, so we do not expect inflation to escalate any further uninterruptedly. Thank you very much. With this, we would like to conclude the question and answer session and today's financial results briefing. Thank you very much for your participation today.