This is Horikoshi, the CFO. I'll explain the overview of Komatsu's business results for FY 2025 Q2. Page four shows highlights for the three months ended September 30, 2025. Exchange rates were JPY 147.3 to the USD, JPY 171.3 to the Euro, and JPY 96 to the Australian dollar. Compared with the same period last year, the yen appreciated against the dollar and the Australian dollar while depreciating against the euro. Net sales decreased by 2.6% year-on-year to JPY 982.1 billion. Operating income decreased by 6.7% to JPY 136.7 billion. The operating income ratio was 13.9%, down 0.6 percentage points from the previous year. Net income attributable to Komatsu Limited. decreased by 8.1% year-on-year to JPY 84.5 billion. Page five presents the sales and segment profit of each business segment for Q2 on a three-month basis for FY 2025. In the Construction, Mining & Utility Equipment segment, net sales decreased by 4.1% year-on-year to JPY 897.3 billion, while segment profit decreased by 11.8% to JPY 119.7 billion. The segment profit ratio declined by 1.2 points to 13.3%. The Retail Finance segment recorded net sales of JPY 30.5 billion, down 2.5% year-on-year, while segment profit increased by 4.9% to JPY 7.5 billion. The Industrial Machinery & Others segment achieved net sales of JPY 63.5 billion, up 23.9% year-on-year, and segment profit increased approximately 3.3 times to JPY 9.4 billion. I will explain the factors behind these changes in each segment later. Page six presents sales by region for the Construction, Mining & Utility Equipment segment in the second quarter of FY 2025. Net sales in the Construction, Mining & Utility Equipment segment decreased by 4.1% year-on-year to JPY 895 billion. In Asia, both mining and construction equipment sales declined due to falling coal prices and reduced public investment in Indonesia, although sales increased in Latin America, Africa, and the Middle East on an underlying basis, excluding foreign exchange rate impact. Total sales decreased by 1.6% year-on-year. Page seven presents the highlights for the first six months from April to September of FY 2025. Exchange rates were JPY 146.4 to the USD, JPY 166.9 to the Euro, and JPY 94.3 to the Australian dollar. Compared to the same period last year, the yen appreciated against the USD and Australian dollar, while depreciating against the euro. Net sales decreased by 3.9% year-on-year to JPY 1,891.6 billion, and operating income decreased by 8.7% to JPY 277.1 billion. The operating income ratio declined by 0.8 percentage points to 14.6%. Net income attributable to Komatsu Limited. decreased by 12.9% year-on-year to JPY 175.7 billion. Page eight shows the sales and profits by segment for the first half of fiscal year 2025. Sales of the Construction, Mining & Utility Equipment segment decreased by 4.8% year-on-year to JPY 1,742.2 billion, and segment profit decreased by 13% to JPY 242 billion. The segment profit ratio declined by 1.3 percentage points to 13.9%. Sales of the Retail Finance segment decreased by 1.3% year-on-year to JPY 61 billion, while segment profit increased by 13.9% to JPY 16.9 billion. Sales of the Industrial Machinery & Others segment increased by 10.5% year-on-year to JPY 106.9 billion, and segment profit rose approximately 2.1 times year-on-year to JPY 16.6 billion. The factors behind the increase and decreases in each segment will be explained later. Page nine presents sales by region for the Construction, Mining & Utility Equipment segment in the first half of FY 2025. Net sales in the segment decreased by 4.8% year-on-year to JPY 1,737.2 billion. While sales increased in Europe, Africa, and the Middle East, it declined in Asia, particularly in Indonesia, as well as in North America and in Japan. Excluding the impact of FX, sales decreased by 0.8% year-on-year on an underlying basis. Page 10 shows the factors behind changes in sales and segment profit for the Construction, Mining & Utility Equipment segment in the first half of FY 2025. Although improved selling prices had a positive effect, the negative impact of FX and lower sales volume outweighed it, resulting in an JPY 88 billion year-on-year decrease in net sales. Despite the positive effect of higher selling prices, the negative effects of FX, reduced volume, and higher costs predominated, leading to a JPY 36 billion year-on-year decrease in segment profit. The impact of tariffs for the first half, including mitigation measures, was JPY 7.7 billion. The segment profit ratio declined by 1.3 percentage points year-on-year to 13.9%. Page 11 presents the results for the Retail Finance segment in the first half of FY 2025. Assets increased from the end of the previous fiscal year as new contract volume exceeded collections. However, new contract volume decreased year-on-year, mainly due to FX impact. Net sales decreased by JPY 0.8 billion year-on-year, mainly due to FX impact, while segment profit increased by JPY 2.1 billion year-on-year, primarily owing to lower funding costs. Page 12 presents sales and profit, segment profit for the Industrial Machinery & Others segment in the first half of FY 2025. Net sales increased by 10.5% year-on-year to JPY 106.9 billion. Segment profit was approximately 2.1 times higher than the previous year at JPY 16.6 billion, and the segment profit ratio rose by 7.4 percentage points to 15.5%. The increase in both sales and profit was driven by higher sales of large presses for the automotive industry and increased maintenance revenue from high-margin excimer lasers for the semiconductor industry. Page 13 presents the consolidated balance sheet. Total assets amounted to JPY 5,922.5 billion, up JPY 149 billion from the end of the previous fiscal year, mainly due to an increase in inventories. Inventories totaled JPY 1,579.4 billion, an increase of JPY 172.7 billion from the previous year end. The shareholders' equity ratio declined by 0.7 percentage points from the previous year end to 54.3%, and the net D ratio was 0.29 x. Free cash flow for the first half of FY 2025 was an inflow of JPY 33.5 billion, limited by an increase in working capital, primarily in inventories. That concludes my explanation. Next, Hishinuma is going to explain FY 2025 business results projection. This is Hishinuma, a GM of the Business Coordination Department. Now I'm going to explain the projection for FY 2025 business results and the measure market overview. Page 15 presents outline of projection for FY 2025. We have revised our full-year projection. Net sales were revised upward by JPY 143 billion from the April 2025 projection and will decrease by 5.3% to JPY 3,808 billion from FY 2024. OP was revised upward by JPY 22 billion and will decrease by 23.9% to JPY 500 billion year-on-year. Net income is projected to decrease 27.2% to JPY 320 billion. It was revised upward by JPY 11 billion year-on-year. There are partial changes in demand outlook, which I will touch upon later. For Construction, Mining & Utility Equipment segment, against the April outlook, due to the demand decline, mainly in Indonesia, it is projected that there will be a negative impact on both sales and profit. Against that, we are going to partially absorb it by adding sales, applies improvement, and the cost improvement from tariff mitigation measures. Fully exchange of major currencies has been moving toward yen depreciation more than originally expected. Taking that into consideration, we have revised full-year business result projection for FY 2025. The greeting fully exchange delayed the census at quota JPY 140 to $1, JPY 163 to EUR 1, and also JPY 91 to AUD 1. For the full-year average of X, the JPY 143.2 to $1, JPY 164.9 to EUR 1, and JPY 92.7 to AUD 1. The FY 25-hour E is projected to be 10.3%. The cash dividend per share, it is planned to be the same as the previous year, JPY 119, which is unchanged from April outlook. The consolidated payout ratio is projected to be 54%. Page 16 presents the latest estimate of the impact of additional U.S. tariff incorporated into the projection of business result revised this time. Based on the U.S. tariff policies and rates that have been disclosed as of October 2024, the latest forecast for tariff, the cost in FY 2025 is as follows. This does not take into account the impact of additional tariff policy on China announced by U.S. government officials in October. Payment basis is JPY 90 billion, which is a decrease of JPY 50 billion from the April 2025 projection, including cost reduction measures implemented during the period. The impact of profit and loss is JPY 55 billion, which is an improvement of JPY 13.5 billion from the April FY 2025 projection. The actual impact on profit and loss, including cost reduction measures for the first half of the year, was JPY 7.7 billion. The impact is expected to increase progressively toward the end of the fiscal year. Page 17 presents projection of segment sales and profit for FY 2025. Construction, Mining & Utility Equipment sales will decrease by 6% from FY 2024 to JPY 3,571 billion, and the segment profit will decrease by 26.4% to JPY 441 billion. Retail Finance sales will decrease by 5% to JPY 117 billion, and the segment profit will increase by 0.3% to JPY 29.5 billion. Industrial Machinery & Others sales will increase by 6% from FY 2024 to JPY 237 billion. Segment profit will increase by 20.5% to JPY 33 billion. I will touch upon reason for increase and decrease for each segment later. Page 18 presents projection for sales by region for Construction, Mining & Utility Equipment in Asia. Coal prices in Indonesia continue to be sluggish, and it is expected that it will not recover for the time being, leading to a significant decline in sales for both mining and construction equipment. Profits are expected to increase in Central and South Asia, Europe, and Asia due to FX impact, but it will decrease by 6% to JPY 3,559.6 billion in total year-on-year. On the currency basis, including FX impact, it will decrease by 1 point year-on-year. Page 19 presents Construction, Mining & Utility Equipment. Because of the difference in projected sales and the segment profit for FY 2025, sales will decrease by JPY 227.2 billion from FY 2024, despite the positive effects of increased selling prices due to the negative effects of foreign exchange rates and decreased volume of sales. Segment profit will decrease by JPY 157.9 billion from FY 2024, despite the positive impact of the improved selling prices due to the negative impact from the factors such as exchange rates, decreased volume of sales, and the increased cost, including the impact of U.S. tariff. The segment profit ratio will be 12.3%, down 3.5 points from FY 2024. Page 20 represents Retail Finance projection. Assets will increase by JPY 42.2 billion from the previous fiscal year due to new investments exceeding recoveries. New contracts will decrease by JPY 45.7 billion from FY 2024, mainly due to foreign exchange rates. Sales will decrease by JPY 6.2 billion from FY 2024, mainly due to a full exchange rate. The segment profit will increase by JPY 0.1 billion from FY 2024, mainly due to lower procurement costs. ROA will be 2.1%, 0.1 point down from the previous year. Page 21 presents Industrial Machinery & Others projections. For the automotive industry, sales of large plates will increase. For the semiconductor industry, sales of the high-margin excimer laser maintenance will increase. Sales will increase by 6% to JPY 233 billion year-on-year, and the segment profit will increase by 20.5% to JPY 33 billion year-on-year. From page 22, I will explain actual and projection demand for seven major products under Construction, Mining & Utility Equipment. Demand for mining and machinery is included in the demand of the seven major products. The numbers for FY 2025 Q2 are preliminary based on our estimate. In the second quarter of FY 2025, demand increased by 1% year-on-year. This time we have reviewed the FY 2025 full-year forecast. As of April, taking into account the direct impact of U.S. tariff to put demand downwards, we estimate the impact of 2.7% globally. However, as of now, excluding some countries such as Brazil, we do not see clear tariff impact on demand. For this outlook, we do not have global figures, and for that reason, we do have the projection by region. Overall, demand is 0.25% negative, which is the same as the April projection. There is some fluctuation in regional demand. From the next page onwards, I will touch upon each region. Page 23 presents demand in the North American market. In FY 2025 second quarter, demand increased by 5% year-on-year. The impact of U.S. tariff policies on demand is unclear, and rental demand, which has been struggling, shows signs of reversal. In FY 2025, full-year demand will decrease by between 0%- 5% from FY 2024. It will change from the April 2025 projection. During the first half, North American demand has been stable, but we will be closely monitoring the impact of the increased U.S. tariff costs on demand. Page 24 presents demand in Europe. In FY 2025 second quarter, demand increased by 1% year-on-year. In FY 2025, full-year demand will remain about a drop from FY 2024, which was changed from the April 2025 projection. The economy has improved due to ECB interest rate cut and the FY expansion measure announcement, and also demand hit the bottom. We will closely monitor the situation. Page 25 presents demand in Southeast Asia. In FY 2025 second quarter, demand decreased by 4% year-on-year. In FY 2025, full-year demand will decrease by between 5%- 10%, which is changed from the April 2025 projection. In Indonesia, which is the biggest market, we see huge demand decrease for both mining and construction equipment due to oil price decline and public works budget cut. We do not expect demand in Indonesia to recover for the time being, so we are going to closely monitor the situation. Page 26 presents demand in the Japan market. In FY 2025, the second quarter, demand decreased by 19% year-on-year. In FY 2025, full-year demand will decrease by between 10% and 15% from FY 2024, which was changed from the April 2025 projection. Demand for rental is low, and there is surplus in market population, which brings down the new machine demand. There is a negative impact on the construction industry due to the lack of manpower. Material price hike, demand will be sluggish for the time being. However, we are going to closely monitor the situation. Page 27 presents price trends and a projection for major minerals for mining equipment. As for low-grade coal from Indonesia, its price is on a downward trend, but other minerals' prices are expected to be high or stable. Page 28 presents actual and projected demand for mining equipment. In FY 2025, the second quarter, demand decreased by 13% year-on-year. Coal price dropped in Indonesia, and demand has decreased significantly. In FY 2025, full-year demand will decrease by between 10%-15% from FY 2024, which was changed from the April 2025 projection. We do not expect demand in Indonesia to recover for the time being. However, the demand elsewhere remains steady. Page 29 presents actual and projected sales of mining. In FY 2025 second quarter, sales decreased by 7.1% year-on-year to JPY 461.9 billion, excluding effects on the impact. Sales decreased by 3.9%. In FY 2025, full-year sales will decrease by 7.5% from FY 2024 to JPY 1,773.2 billion, excluding foreign exchange impact. Sales decreased by 1.6%. For mining equipment, Indonesia has dropped due to oil price drop, but excluding Indonesia against April outlook, sales increase, excluding foreign exchange impact. For mining equipment and services, in addition to the decline in parts in Indonesia, we see customers work on cost reduction for cost, and it will decrease, excluding foreign exchange against April outlook. Page 30 presents Construction, Mining & Utility Equipment, actual and projected sales of mining. In FY 2025, the second quarter, parts sales decreased by 2.5% year-on-year to JPY 260.6 billion. The ratio of aftermarket, including service, was 53%, excluding foreign exchange. Aftermarket sales increased by 0.4% year-on-year. FY 2025 parts sales will decrease by 4.8% year-on-year to JPY 1,001.1 billion. The aftermarket ratio, including service, is 52%, excluding foreign exchange impact. The total aftermarket sales will increase by 1.1% year-on-year. Thank you very much. I would like to touch upon second quarter topics, starting from page 47. Page 47. Komatsu will establish a new training center in Côte d'Ivoire for construction equipment mechanics and operators. This was announced at the 9th TECAD, which was held from August 20th to 22nd. The completion is scheduled in 2026. Komatsu aims to expand its function to include equipment stock and parts depot, as well as marketing capabilities, positioning itself as the core facility for West Africa. It is going to be expanded to West African customers, distributors, and local communities. Page 48. Komatsu and U.S.-based Applied Intuition will co-develop a unified software-defined vehicle, which is SDV, an autonomy platform. With Applied Intuition's probing capabilities across vehicle operating system, autonomy stacks, and tooling, and Komatsu's extensive expertise in off-highway autonomy and mining applications, the collaboration represents a bold step toward the future in synchronously autonomous software-driven mining operations. By having an autonomy platform leveraging SDV architecture, AI, and machine learning, the productivity of the mining field can be dramatically improved, and we can provide higher values to the customers, including equipment downtime reduction and also highly precise and efficient operation. Page 49. Komatsu and its subsidiary S-BLANE have entered into a collaboration with Tier IV, a pioneer in open-source software for autonomous driving, to develop autonomous technology for construction equipment. The collaboration of three companies will focus on autonomous operations. Komatsu articulated in a rigid dump truck for civil engineering and quarry sites in Japan, aiming for practical use by FY 2027. Page 50. On September 19th, Komatsu issued the integrated report, Komatsu Report 2025. This report introduces our management policies and the corporate activities aimed at sustainable enhancement of corporate value over the mid to long term, with the focus on the new three-year medium-term management plan, renamed the Strategic Growth Plan, with the title of Driving Value with Ambition. Please take a look at it. That's it from myself. Now, from here on, we would like to take any questions that you may have. Thank you very much for that presentation. This is Sasaki from UBS. I have two questions. My first question is regarding numbers. Regarding volume mix and cost impact, do you have more detailed plans for this? In In the new plan, the revised plan, compared to the beginning-of-the-year plan for volume and mix, it was revised down substantially by JPY 78.5 billion. What was the reason why it was revised down so substantially? That's my first question. This is Horikoshi; thank you for your question. First, looking at page 10 and first half results, for volume and mix, JPY 27.8 billion is what you see here. For pure volume, it's JPY 19.3 billion. Other than that, for a product or an area mix impact, it's JPY 6.4 billion, and it's likely to deteriorate. There's one-off cost worth JPY 2.1 billion, which adds up to JPY 27.8 billion. For area and product mix, the reason why it's deteriorating by JPY 6.4 billion, and it's about half and half of a breakdown, for area mix, it's because of Indonesia and its sales have been falling, and it's a high margin market. Conversely, margins are not as good in Europe, but its mix contribution is increasing. That's the reason why area mix is deteriorating. For product mix, especially regarding mining equipment, the parts ratio has been falling, and out of equipment, the low margin products have sold more in the first half of the year, which was also a negative factor. That was the first half. Regarding our expectations, looking at page 19, on a year-over-year basis, JPY 82.8 billion is the negative impact from volume and product mix, etc. Pure volume impact is minus JPY 40.8 billion. Product mix, area mix are going to be, in total, JPY 36.5 billion negative, and also one-off cost, JPY 5.4 billion, which adds up to JPY 82.8 billion. For product and area mix, which is a large number, the reason is attributed to the same reasons as the first half and is likely to expand. Compared to the April public announcement, we're talking about our projection on an annual basis, right? On an annual basis, compared to the difference between the public announcement in April for sales, it's about JPY 130 billion of a difference. It's worse by JPY 130 billion. Out of which, FX is better. Second half assumptions are now JPY 140, so it's a positive factor by JPY 22.0 billion, but conversely, for volume, we are expecting a decline in the order of JPY 100 billion. That amounts up to JPY 130 billion of a sales improvement compared to the April public announcement. For the P&L, compared to the April public announcement, it's better by JPY 13 billion. Out of which, FX impact is about JPY 75 billion, and pure volume impact is about JPY 36 billion negative, which is equivalent to that JPY 100 billion. For mix difference, for product and area, this is big, JPY 42.5 billion. Tariff measures, price increase impact is about JPY 10 billion positive. For costs, it's about JPY 12.5 billion positive. This is mainly due to tariffs having increased. Therefore, we were able to incorporate strong countermeasures. Net, it's JPY 13.5 billion, and other costs are JPY 11 billion. On a net basis, it's JPY 12.5 billion better. For fixed costs, compared to the beginning of the year, it's going to be less. It's JPY 13 billion better than the April public announcement, therefore. Indonesia, which is relatively higher margin, has deteriorated. It's not just sales volume decline, but it has also led to a mix deterioration as well. Is that the right way to look at it? Yes. Area mix has deteriorated. This is attributed pretty much solely to Indonesia, and also Europe, conversely, improved. Net, area mix deteriorated. Thank you very much. Let me move on to my second question. Regarding Indonesia, for Mining & Utility Equipment and Construction, what kind of things are happening on the ground? Can you give me more detail on that? For example, what are the conditions of the customer? What are they saying to you? For mining, the idle rate, I believe, is increasing. Can you talk about the background as to why sales are deteriorating by explaining about what's happening on the ground there? That's my second question. This is Kiyoshi Hishinuma speaking. Regarding Indonesia, starting off with construction equipment, for forestry, it hasn't really deteriorated demand-wise in agriculture, but construction equipment demand has been deteriorating. Public works budgets, compared to our initial assumptions, have become lower and stricter. It's probably due to policy. They are actually allocating more to making school lunches free, and that is why they decided to cut public work project budgets, which has had, in turn, an impact on our construction equipment demand. For mining, like we've been communicating from before, the 4,200 kcal thermal coal prices, there is a strong correlation in the market. That's what we've been explaining from before. Prices are quite sluggish, as explained, at $42 or $43 a ton. About a year ago, it used to be about $52 or $53. Price levels have been coming down quite substantially. Customer profitability has been deteriorating. That's hard, but we may have communicated this at Q1 results. Regarding cost for biodiesel policies, B35 has been revised up to B40. That has been leading to higher prices and worsening fuel efficiency. Operation cost is increasing. Also, regarding royalties that you need to pay to the government, it has been increasing as well. Therefore, profitability for the customer has been deteriorating. That is why mining demand is likely to be sluggish for a while going forward. How about the idle rate? Do you have any numbers on that? We only have numbers up until August, but it was 9.6%. Compared to before, it has been deteriorating. It used to be about 8% in Q1, I believe. Got it. Thank you very much. Thank you very much. We are going to take the next question. Mr. Mike Cava from Nomura Securities. This is Mike Cava from Nomura Securities. Thank you very much for your explanation. I am going to ask two questions. My first question is about tariff cost and also your measures against it. That is my first question. As you can see on page 16, there is the JPY 50 billion mitigation, and I'd like to know what specific measures you're going to have. Also, the liquid steel and aluminum. I think there was the impact in August, during August at the end. First of all, I'd like to ask about cost. Now we are having more measures. Liquiding tariff cost, excluding April, JPY 77.5 billion. However, this time we are projected to be JPY 80 billion. Therefore, the mitigation or the improvement for April, we were projected to have it as the JPY 10 billion. However, now we are accumulating this to the JPY 30 billion. There is the JPY 8 billion more for the tariff. For the measures, we are going to have about JPY 20 billion additional. Against the cost, the difference or the cost gap, I said that it's improved, and that's where we have gains. For our improvement measures, what specific measures do we have? First of all, as I mentioned in April, there is a procurement or the source of procurement is going to be changed. The U.S., Canada, and Mexico have treaties among these countries. Especially for steel and aluminum tariff, we are going to expand where the treaties will be applied. That is one of the measures. Regarding the steel and aluminum, if we do nothing, it's going to be 50%, so we are going to look at the accurate number about the content. That is what we are going to do. The liquiding increased numbers, was it mainly because of steel and aluminum? Yes. There is a price increase. You talked about the increase of the sales price. However, I was wondering if you are going to have a further increase of the sales price or how you see the competitors move, especially in the U.S. market. As I mentioned in April, starting from August, there is a 40% price up in the States. Compared to April public announcement, we do see the difference for that reason. However, there are some negative numbers, meaning that there is a slight decline from the number we originally had. Regarding what competitors are doing, competitors are increasing their prices. The U.S. companies, for the time being, we have not heard that they are increasing their prices. In 2022 and 2023, they had the big price increase, which was more than 10%. From the second half of 2024, actually, they are now going to, they are decreasing the price. During that period, we really didn't have much price increase. Probably we still have the room for a price increase. That's why we have executed that this August. For this projection regarding the U.S. for construction, actually, we have revised the sales upward. We look at the current situation, and from the fiscal beginning, especially for the second half, we were projecting that we will have the downward trend. However, probably that is not going to happen. For the construction, especially in the States, we are going to project the upward revision. I have one additional question related to that. Other companies are doing strong in North America. However, they had a very, the last minute, the price increase. Do you have the same concern, or do you see any improvement in the North American market? As we mentioned when we talked about projection, we are now having the upward demand projection in North America, meaning that the current situation is not that bad. Regarding the free cash flow and the cash allocation or the share buyback, I would like to ask some questions. Regarding the free cash flow, JPY 240 billion is projected. For the total, I remember that the number given was JPY 320 billion. I feel like it was revised downward. For the cash allocation, is there any other things that we should take into consideration, or is there anything we have to look at? JPY 240 billion is the number we gave in July. From July projection, we have the same number. There are two reasons for this. First of all, there is the inventory asset. The tariff impact is bigger than we projected in April. That was incorporated for this number. For sales, especially for mining, there was the difference of timing, especially for the second quarter. There is going to be big sales, especially from Central and South America. If it will be delayed, we will not be able to realize the recovery. That is why we see decline. Having said that, there is not a huge decline, and there is nothing we really should pay attention regarding the cash allocation. Yes, this is just the delay or the difference of the timing. There is no change in cash allocation. OK, thank you very much. Thank you. Let's move on to the next question. From Jefferies, FU.K.uhara -san, please. This is FU.K.uhara from Jefferies. Thank you very much for your time today. My first question is regarding slide 28. Regarding demand in Indonesia, it says that it's not going to recover for the time being. Are you talking about until the end of this fiscal year, end of March, or is this going to persist going into next fiscal year as well? Can you talk about the demand environment in Indonesia? Is this year going to be a bad year, but are you expecting a pickup next fiscal year? That's my question. This is Hishinuma speaking. Our outlook applies to this fiscal year end. Regarding our outlook for next fiscal year, it's hard to say at this point in time. For coal in Indonesia, the impact from China is quite substantial. China, with production within the country increasing, has been reducing the amount of imports. If there is a turning point once again where they import more, and I think that depends on prices as well, that will impact Indonesia. Like explained in the presentation regarding cost, costs have been running up higher. If there is a policy change regarding royalties that I explained earlier, that should be a positive. We'll need to scrutinize the details going forward. In other words, this is impacted by the external environment. It's not really due to your company's competitiveness, or should we be concerned? Regarding product competitiveness, dump trucks from China may gradually come into the market. When you look at the overall big picture, we don't believe its impact is going to be that substantial. OK, I see. My second question is about page 45, the BB ratio. What caught my eye is KMC. When you look at the chart, it is looking upwards. If it's possible for the demand for an order-taking situation for underground mining, have you been seeing any changes? We haven't been seeing any major changes, so the order environment hasn't really deteriorated. It may look low, but it doesn't mean that the environment has deteriorated. Understood. Thank you. Thank you. We are going to take the next question. That's from Goldman Sachs. This is Adachi from Goldman Sachs. I have two questions. My first question is regarding cash flow. You talked about a four-year projection. For the sales cash flow, the JPY 410 billion, and for the first half, JPY 130 billion. I would like to see what this project to be improved during the second half. This is Horikoshi speaking. First of all, there is the inventory asset. As you can see, when you look at the balance sheet, the inventory asset compared to the end of March, it's increased by JPY 170 billion. Excluding U.S. dollars, especially there is the base credit depreciation of the yen. Toward the end of the year, we are going to decrease this. That is going to be effective. For the operating capital, that will be effective. OK, thank you very much. Just to follow up, when you look at the cycle in the fiscal beginning, I believe that the situation was stabilized in North America. When you look at the current situation, there will be more impact from the second half. I feel like now you're in the phase to expand production and inventory. However, at the same time, I feel like looking at the situation for the mining equipment, you're going to decrease it some. I would like to look at what you're going to decrease. When we talked about the actual first half, I talked about comparison against the April public announcement. There's around JPY 100 billion volume difference, which was declined from April. For the construction equipment, around JPY 10 billion was unachieved, and only JPY 90 billion was negative. Among JPY 90 billion, the JPY 40 billion can be accounted to Indonesia and also North America as well. There is the difference of the equipment, and also the coal price drop, and also the overhaul was delayed, which is around JPY 30 billion from North America. Looking at Central and South America, there is the timing difference, which is around JPY 10 billion. It's going to be added up to JPY 90 billion. This is for the first half. When you look at the full year, JPY 100 billion was unachieved. For the full year, it's around JPY 20 billion unachieved. When you look at the breakdown, Indonesia accounts for the same or the higher compared to the first half. For North America, we are expecting to see significant improvement. For Oceania, there is the easing of the housing policy. From 2023 to June, we have been seeing a continuous decline. However, now we are seeing the improvement of the situation. For the construction equipment, as you say, the situation is actually not that bad. However, mining JPY 90 billion was unachieved during the first half. JPY 80 billion is going to be the unachieved full year. From Indonesia, JPY 100 billion is going to be unachieved. For Central and South America, it was the JPY 10 billion unachieved in the first half. For the second half, it's going to be JPY 40 billion overachieved. For North America, during the first half, JPY 30 billion unachieved. We are going to see the slight recovery from that number. For the construction equipment, I'm not sure. Mainly this is because of mining. Thank you very much. My second question is about tariff. I would like to ask about next fiscal. As much as you can answer, I would like you to do the answer. Now the JPY 500 billion and the JPY 35 billion inventories. As much as you can say, what will be the number for the next fiscal? This year, the cost was JPY 8 billion net, or it's JPY 55 billion net. This is what we are projecting to see as a cost. For the payment basis, it's around JPY 90 billion. During the fiscal beginning, there is the inventory asset, which did not get the tariff impact. That is why the number is a little bit mitigated. For the next fiscal, we are not going to have the impact of the inventory asset. During the fourth quarter, there's going to be the payment basis, which is the base credit same as TPL. That will be four times bigger. It's just a rough estimate. The payment basis, which is equal to the PL, is going to be around JPY 120 billion. Thank you. Thank you for your question. Now we'd like to take questions over the phone. From the U.K., Kusesan. This is Kusesan from the U.K.. Thank you very much for taking my question. Do you hear my voice? Yes, we do. Thank you. I have two questions. First question is about, you talked about margins being better in Indonesia compared to Europe. Regarding this difference of margins, is this because of the difference in the competitive landscape? For Europe, are there any signs of margins improving or any measures you're implementing in order to improve profitability? Regarding Indonesia, we have a strong partner or distributor there called United Tractors, UT, and we sell through them, especially for mining equipment. Fortunately, our market share is very high. We have a competitive advantage leading to a relatively higher margin. Thank you very much. For Europe, should we expect any changes in profitability or not really? This is Imayoshi speaking. For Europe, originally, it's mainly a construction equipment market, and competition is pretty tough. Compared to other regions, structurally, profitability is lower on a relative basis. Thank you. My second question is about Latin America. You revised up your expectations there. When I look at your financial statements, you were talking about an improvement in copper demand. Regarding tariff impact on demand, is that the case where the tariffs didn't really have that much of an impact on demand? This is Horikoshi speaking. In Latin America, conditions are better in regions like Chile, or actually, Brazil has deteriorated, and also Mexico and Peru. Those are the regions that have been decelerating. Brazil's impact is quite large. However, Chile is doing better, Ecuador as well, and Colombia. For Chile, initially, when copper is to be imported into the U.S., we were concerned that tariffs were going to spring up, but that's not the case. Copper from Chile is 98% refined. Therefore, that is not subject to tariffs. Regarding copper production in Chile, as well as demand for mining equipment, tariffs did not have an impact. Thank you very much for that. Regarding tariffs not being imposed on what you explained about Chile, is that included in the mitigation measures? We originally did not account for it. No, it's not included. Thank you. For Brazil, it has been receiving tariff impact and leading to a demand decline. Is that what you were explaining? Brazil is facing other circumstances. For Brazil and Canada, this is where U.S. tariffs are expected to increase, or at least that has weighed on customer sentiment, leading to a demand decline. I see. Thank you very much. That's all for me. OK, now we are taking the next question from the floor. Taninaka-san from SMBC Nikko Securities. I'm Taninaka from SMBC Nikko Securities. You're not going to expect recovery in Indonesia for the time being. I'd like to learn more about it. Now, $50 is the coal price, and the mining demand is around 2,000 units. However, when we go back to 2017 or 2018, I think it was around the hundreds of units. For the construction equipment, it is around 1,500. However, in the past, it was around 800 units. If the price level continues, do you see that there is a risk that the volume will go down to the level of 2017 and 2018? Do you see a certain level of renewal demand? The 3,000- 3,500 units, do you see this is the demand trend moving forward? First of all, regarding mining in Indonesia, the coal was primarily the material. This is highly correlated to the price of coal. If it drops, a contractor will not purchase it. There is another variable, which is overhaul timing. Based on our experience, overhaul is once in six years. The last renewal timing was around 2020. You'd like to see how does that impact. Thank you. My second question is, there's a mining equipment and the after service, which I'd like to learn separately. For the equipment, there is the demand worsening or the timing difference. I'd like to ask about after service. The operation rate of the equipment at the mining, and how does it support the mining in general? Is it going to recover from next year? I'd like to understand a trend. Do you have any data of the usage, the rate, or the operation rate at the customer's site? Regarding mining, there is equipment, parts, and others. The parts are mainly from Indonesia. There are coal-related customers, and they are getting weaker than we expected. For general service, there is no change. Thank you. That's it for myself. Thank you. Are there any other people from the venue who have additional questions? Kitaura-san from Bloomberg, please. This is Kitaura from Bloomberg. I just have one question. Maybe a big picture question, but President Trump was in Japan, and $60 trillion into AI and energy infrastructure was being talked about, with many companies being a part of this initiative. When it comes to infrastructure investment in the U.S., digging and filling is probably likely to increase in the future. Towards next year, are there any upside expectations you have for the U.S. market for next year? Housing and non-housing commodities is how we break up the U.S. market. Where there are investment projects, demand in the non-residential segment increases and picks up. This is something we'll need to wait and see. We're not really sure about next year yet. Thank you. That's all for me. I would like to take the next question from participants on the call. McDonald Hasan from Sydney. Do you hear me okay? Yes. Just to confirm, in answering the previous questions, Horikoshi mentioned that the tariff impact will be four times. Did you say JPY 120 billion? Yes. For this year, it's going to be around JPY 55 billion. Yes. For this year, as I mentioned in the beginning of the explanation, the JPY 7.7 billion net for the first half and the JPY 55 billion full year, meaning that the third quarter and the fourth quarter are reaching toward the end of the fiscal, and we are going to see bigger impact. For the fourth quarter, the mitigation impact of inventory assets will go away. The numbers of the fourth quarter, if you multiply that by four, then you will be able to have the full year number for the next year. Regarding the mitigation measures, such as the price increase or procurement or the change of the suppliers, all of these are included, and with the worst scenario, you are projecting JPY 120 billion. Is that correct? Taking mitigation measures into account with the current measures we have, the number is going to be JPY 120 billion. However, every year, of course, we do have the regular price increase, which we are going to have next year as well. It's about how much we'll be able to absorb, and I think it's the same as what we explained in our July announcement. This May at the various meetings, U.S. production or the plant construction, there are many discussions going on. Basically, you are not going to make any reinvestment, right? You do not have any plan to expand your U.S. factories, right? In the past 14 years, JPY 300 million is what we make as the investment into our facilities, and we are going to continue that. Do you have any plan to expand the local production in the States? We would like to expand that as much as possible. Okay. Thank you very much. Thank you. I think there was another person in this room. Yes. Once again, we'll go back to Sasaki-san from UBS. Thank you for choosing me again for the second round. I have an additional question regarding construction equipment demand in the U.S. and Europe. You were saying that it's picking up. Can you talk about the reasons why we're seeing a pickup in construction equipment demand by region? First, for Europe, public works budgets are available in Europe. We're just saying that it's a bottoming out of demand rather than a pickup, but that's a positive. For the U.S., we have been giving out explanations already. The impact from tariffs hasn't really had a negative impact on the market itself. The market is not that bad, and we are expecting investments to take place, and that's why we believe things are looking upwards. However, tariffs have not been completely locked in yet, so we'll need to pay close attention to the market. For the U.S., regarding residential, non-residential infrastructure, as well as rental, what are the colors, or how do you view the conditions for each segment? For the first half, rental clearly has been improving. There was double-digit declining for rental until last year, but for the first half of this year, Q1 was down, but Q2 was up by 11%. Rental is doing very well. Also, energy-related, this too turned positive in the first half of this fiscal year. For non-residential as well, such as AI-related, power gen facilities, I presume. It wasn't doing that bad. It was trending positively, but positive trends persist. All in all, residential is slightly weak, but apart from that, all segments are becoming better than before. Thank you. you. I'm sorry for going on, but for residential, are you seeing any pickup due to the rate cuts or no as of now? If you look at page 23, where we show housing starts, it doesn't look like it's picking up. Got it. Thank you very much. Thank you very much for taking my question. We'd like to take the next question from phone call participants, Tai-san from Daiwa, please. This is Tai. Thank you very much. Probably, I should ask this question separately. However, regarding the results and the plan of Indonesian sales, probably now you will be able to disclose that information, but is there any numbers you can disclose as of now? We have already disclosed the numbers related to Asia, and regarding Indonesian figures, it's about half or slightly less than half. I do not have specific numbers with me, but it's just about half of Southeast Asia. What page was it? I think it's page 25. If you look at page 25, demand, the Indonesia percentage is quite high among Southeast Asian countries. Indonesia is pretty big. You spent quite a lot of time to talk about Indonesia. However, you do not have specific numbers for Indonesia, and that is what I really wanted to understand more. I feel like we have to ask this question later, and that is why we wanted to have some figures related to ourselves. Anyway, I would like to ask the numbers of a cost difference between plan and actual. I think there's some tariff impact as well, which is smaller than around JPY 10 billion from the fiscal beginning. Could you please give us the explanation about this? Starting from the first half, JPY 13 billion is about the cost difference. As I said, there's the tariff, the impact of JPY 7.7 billion. However, there are some materials which have the price decrease. However, there's the tires or the human resources impact. All we know is the JPY 13 billion for the first half. If you look at the full year, on page 19, JPY 64.1 billion negative, and the JPY 55.1 billion is the tariff impact. There is an increasing tariff cost. Now we have the JPY 30 billion size of the tariff measures, and that numbers are included into JPY 55.1 billion. There's the tires or the human resources cost of our suppliers. There's around the JPY 10 billion. This is going to be my last point for the next year, as the mark asked the question. Additional JPY 40 billion, excuse me, the JPY 70 billion increase, meaning that when we look at the numbers, it's going to be around JPY 430 billion. Of course, there's a discussion about aiming to achieve the JPY 3 trillion sales and such. However, for the next year mitigation measures, I would like to learn more about your potential action so that this is increased net base, which seems that there's nothing more that you can do. How do you see the situation? This is Imayoshi speaking. As Horikoshi explained, JPY 120 billion is a number we have for the next year, which does not include a price increase. Price increase is not only due to the tariff, but we are going to make efforts to increase price not only in the U.S., but also other areas. There are tariff negotiations still going on between other countries. We have to monitor the situation carefully and how to mitigate the tariff. In addition to the measures that we have this year, we have been working on mid to long-term measures, which we are expecting to see certain impacts. Of course, we are going to have, we have to have company-wide cost reduction, and we will see what that will be the impact overall. As it was mentioned, Caterpillar really did not increase the price. For Komatsu and Hitachi, I think no one really sees whether you will be able to increase prices. There is a strategy difference. When you look at the reactions from the dealers, do you see any difference? Caterpillar is not going to increase the price. Under such situation, do you think you will be able to increase your prices? We just have a price increase, and we just saw this tariff situation. We are going to look at the retail situation as well. Thank you very much. Thank you. Any questions, additional questions from the floor? If not, this concludes today's meeting. We'd like to end fiscal year 2025 Q2 business results briefing. Thank you very much for watching and attending.