I am Hiroshi Hosotani, CFO. I will now provide an overview of the business results for the fiscal year 2025. Page four shows the highlights of business results for fiscal 2025. Foreign exchange rates were JPY 150.5 to the U.S. dollar, JPY 173.8 to the euro, and JPY 99.2 to the Australian dollar. Compared to the previous fiscal year, the Japanese yen appreciated against the U.S. dollar and Australian dollar, but depreciated against the euro. Net sales increased by 0.7% to JPY 4,132.8 billion. Operating income decreased by 13.7% to JPY 567.3 billion. The operating income ratio was 13.7%, down 2.3 points. Net income attributable to Komatsu decreased by 14.4% to JPY 376.4 billion. Net sales reached a record high for the fifth consecutive year. ROE was 11.3%, down 2.9 points from the previous year. We plan to pay an annual cash dividend of JPY 190 per share, the same as the previous year, resulting in a consolidated payout ratio of 45.9%. Page five shows segment sales and profits for fiscal 2025. Net sales in the Construction, Mining, and Utility Equipment segment increased by 0.2% to JPY 3,806,000,000. Sales exceeded the projection announced in October as demand was higher than expected. Segment profit decreased by 18% to JPY 491.1 billion. The segment profit ratio was 12.9%, down 2.9 points. Retail finance sales increased by 2.4% to JPY 126.1 billion. Segment profit increased by 24.4% to JPY 36.6 billion. Industrial machinery and other sales increased by 6.8% to JPY 238.8 billion. Segment profit increased by 38.5% to JPY 37.9 billion. I will explain the factors behind the changes in each segment later. Page six shows the sales by region for the Construction, Mining, and Utility Equipment segment for FY 2025. Sales to outside customers for the segment increased by 0.2% to JPY 3,796,100,000,000. Details of regional changes will be explained by mining and construction equipment respectively on the following pages. Page seven shows the sales by region for mining equipment within the segment for FY 2025. Mining equipment sales decreased by 0.6% to JPY 1,904.4 billion. In Asia, sales decreased due to a decline in demand following low coal prices in Indonesia and demand decline. However, sales increased in Africa and Latin America, where demand for copper mines remained strong, keeping overall sales flat. Page eight shows the sales by region for construction equipment within the segment for FY 2025. Construction equipment sales increased by 1.1% to JPY 1,891.7 billion. In real terms, excluding FX impact, sales increased by 0.2%. In Asia, sales decreased as it took time to adjust distributor inventories in Indonesia. Sales increased in North America, driven by demand for infrastructure, rental, and energy, and in Europe, where infrastructure investment is on a recovery trend. Page nine shows the causes of difference in sales and segment profit for the Construction, Mining, and Utility Equipment segment for fiscal 2025. Sales increased by JPY 7.8 billion as price improvement effects outweighed the negative impact of decreased volume. Although we focused on improving selling prices, segment profit decreased. The negative effects of decreased volume, product mix, and higher costs due to U.S. tariffs and production costs outweighed the price improvements, resulting in a JPY 107.8 billion decrease in profits. The segment profit ratio was 12.9%, down 2.9 points from the previous year. The impact of tariffs in fiscal 2025 amounted to JPY 64.2 billion. Page 10 shows the performance of the Retail Finance segment for fiscal 2025. Assets increased by JPY 238.3 billion from the previous fiscal year-end due to an increase in new contracts and the depreciation of the JPY. New contracts increased by JPY 75.8 billion, mainly due to higher finance penetration in North America and Europe. Revenues increased by JPY 2.9 billion, mainly due to an increase in outstanding receivables. Segment profit increased by JPY 7.2 billion, mainly due to lower funding costs. Page 11 shows the sales and segment profit for the Industrial Machinery and Other segment for FY 2025. Sales increased by 6.8% to JPY 238.8 billion. Segment profit increased by 38.5% to JPY 37.9 billion. The segment profit ratio was 15.9%, up 3.6 points. For the automotive industry, sales of large presses increased. For the semiconductor industry, sales and profits increased due to higher maintenance sales of excimer lasers with high- profit margins. Page 12 shows the consolidated balance sheet and free cash flow. Total assets reached JPY 6,423,900,000,000, an increase of JPY 650.4 billion, primarily due to the impact of the yen's depreciation. Inventories increased by JPY 195.2 billion to JPY 1,601,900,000,000, affected by both the weak yen and U.S. tariffs. The shareholders' equity ratio was 54.7%, down 0.3 points, and the Net D/E ratio was 0.26 times. Free cash flow for FY 2025 was an inflow of JPY 249.7 billion, a decrease of JPY 56.8 billion from the previous year. From page 13, I will explain the progress of the strategic growth plan. The current strategic growth plan, Driving Value with Ambition, which started in fiscal 2025, set three pillars of growth strategy: Create Customer Value Through Innovation, Drive Growth and Profitability, and Transform Our Business Foundation. Under Create Customer Value Through Innovation, we began operating a Power Agnostic truck at a copper mine in Sweden as part of our efforts to address various power sources. We also conducted a POC test of a hydrogen fuel cell-powered hydraulic excavator at a highway construction site in Japan. As part of our efforts for advanced automation and remote control, we are advancing the development of SDVs for next-generation mining equipment in collaboration with Applied Intuition. We are also promoting the practical use of autonomous driving technology for construction equipment through collaboration with Tier IV. Next, under drive growth and profitability, we received the first major mining equipment order in the Middle East for the Reko Diq copper-gold project in Pakistan. We began deploying AHS in the U.S. and delivered the 1,000th unit globally. We will also strengthen our remanufacturing business through the acquisition of SRC of Lexington in the U.S. We have initiated the establishment of a training center in Cote d'Ivoire and will work to strengthen our marketing and service capabilities in the Africas region. Lastly, regarding transform our business foundation, in addition to embedding risk management through ERM and strengthening our supply chain through cross-sourcing and multi-sourcing, we accelerated human resource development for innovation and business transformation through the utilization of AI and digital transformation. We succeeded in improving scores in our employee engagement survey. Our global brand campaign led to high recognition at International Creative Awards. Page 14 shows the achievement of management targets in the strategic growth plan. Net sales for fiscal 2025 increased by 0.7% year-on-year as the improvement in selling prices offset the decline in sales volume. Profit decreased year-on-year as the negative impacts of volume reduction and cost increases outweighed the effects of price improvements. Regarding management targets, in terms of profitability, the operating income ratio for fiscal 2025 was 13.7%, a 2.3 percentage point decrease from the previous year. Despite efforts to improve selling prices, the results were significantly impacted by volume decline, inflation-related cost increases, and higher costs due to U.S. tariffs. In terms of efficiency, ROE was 11.3%, achieving our target of 10% or higher. For the retail finance business, we achieved our targets for both ROA as well as the net DE ratio. Regarding shareholder returns, we expect to maintain a consolidated payout ratio of 40% or higher. Also, we executed a repurchase of JPY 100 billion of our own shares. Regarding the resolution of social issues, we have set 30 KPIs, and progress in FY 2025 has been broadly in line. Among these, for the reduction of environmental impact, we achieved our target for CO2 reduction from production ahead of schedule. Reduction of CO2 emissions during product operation and the renewable energy usage ratio are also progressing largely as planned. That concludes my presentation. With that, fiscal year 2026 forecast of the business, that will be explained by Mr. Hishinuma. This is Hishinuma, the GM from Business Coordination Department. I would like to walk you through our forecast for fiscal year 2026 in our primary markets. Page 16 summarizes impact of the situation in the Middle East and the U.S. tariffs, as well as the underlying assumptions that have been factored into the fiscal year 2026 earnings forecast. The fiscal 2026 forecast incorporates items for which estimates can be made based on information available at this time. Regarding the situation in the Middle East, assuming the turmoil in the Middle Eastern countries and soaring oil prices and supply chain disruptions will continue throughout the year, we have factored in a decrease in sales of JPY 90.1 billion and an increase in cost of JPY 18.8 billion. However, regarding the impact on production due to shortages of crude oil, derived materials, while there is a risk, the situation is unclear at this time. Therefore, it has not been factored into the fiscal year 2026 outlook. On to U.S. tariffs. Based on assumptions that Section 122 additional tariffs will apply throughout the year, and that the revised steel and aluminum tariffs will apply from April 6 throughout the year. We have factored in additional cost of JPY 67.8 billion. However, we have also factored in JPY 30 billion in refunds, resulting in a net cost increase of JPY 37.8 billion. Page 17 provides an overview of the outlook for fiscal year 2026. We anticipate exchange rates of JPY 150 to the U.S. dollar, JPY 170 to the euro, and JPY 106 to the Australian dollar. We project net sales of JPY 4,118,000,000,000 billi, a 0.4% year-over-year decrease, and operating income of JPY 508 billion, a 10.5% year-over-year decrease. Net income is projected to be JPY 318 billion, decrease of 15.5% year-over-year. Furthermore, at the board of directors meeting held today, a resolution was passed to repurchase treasury stock up to a maximum of the JPY 100 billion or 25 million shares, and to cancel all repurchased shares during FY 2026. ROE for FY 2026 is projected to be 9.1%. The dividend per share is planned to be JPY 190, the same as the previous year, and a consolidated dividend payout ratio is projected to be 53.8%. In addition, when the JPY 100 billion share buyback announced today is included, the total payout ratio is projected to be 85.4%. Page 18 presents the revenue and profit forecast for each segment. Revenue for the Construction, Mining, and Utility Equipment segment is expected to decrease by 0.4% year-on-year to JPY 3.79 trillion, while segment profit is expected to decrease by 10.4% to JPY 440 billion. Revenue for retail finance is expected to increase by 1.1% year-on-year to JPY 127.5 billion, while segment profit is expected to decrease by 1.6% to JPY 36 billion. Revenue for industrial machinery and others is expected to increase by 0.1% year-on-year to JPY 239 billion, while segment profit is expected to decrease by 2.5% to JPY 37 billion. We'll explain the factors behind the change in each segment later. Page 19 present the regional sales forecast for the Construction Equipment and Utility sector for fiscal 2026. Sales of this segment are projected to decline by 0.5% year-on-year to JPY 3,778,200,000,000. Details of the year changes by region are provided on the following pages, broken down by mining machinery and general construction machinery. Page 20 presents the regional sales forecast for mining machinery within the Construction Equipment and Utility segment for fiscal 2026. Sales of mining equipment are expected to decline by 2.4% year-on-year to JPY 1,858,500,000,000. Sales are expected to decline in Asia and the Middle East due to sluggish demand for coal and impact of situation in the Middle East. In North America and Oceania, demand is expected to decrease as mining companies complete their equipment renewal cycles, leading to a decline in sales. Page 21 shows regional sales forecast for general construction equipment within the Construction, Mining, and Utility Equipment segment for fiscal 2026. Sales of general construction equipment are forecast to increase by 1.5% year-on-year to JPY 1,919,700,000,000 billion. While sales are expected to decline in Middle East and Asia due to regional situation, overall sales of regional construction equipment are projected to increase year-over-year, driven by growth in North America, where demand for infrastructure energy project remains strong, and in Latin America, where public investment is robust. This page outlines the factors contributing to the projected changes in sales and segment profit for this segment. Although we are striving to improve selling prices, sales are expected to decrease by JPY 16 billion year-on-year due to negative impact of lower sales volume caused by situation in the Middle East. Segment profit is expected to decrease by JPY 51.1 billion year-on-year. Although we will strive to improve selling prices, this is due to the negative impact of lower sales volume, the expanding impact of tariffs, and the rising procurement cost. The segment profit margin is expected to decline by 1.3 percentage points year-on-year to 11.6%. Page 23 presents the outlook for retail finance. Assets are expected to increase by JPY 23.6 billion compared to the end of the previous fiscal year as new lending exceeds collections. New lending volume is expected to increase by 5 billion JPY year-over-year as we anticipate a high utilization rate continuing from the previous year. Revenue is expected to increase by 1.4 billion JPY year-over-year, primarily due to an expansion in outstanding loan balance. Segment profit is expected to decrease by 0.6 billion JPY year-over-year, primarily due to higher costs. ROA is expected decline by 0.1 percentage points year-over-year to 2.3%. Page 24 presents the sales and segment profit outlook for industrial machinery and others. Sales are projected to increase by 0.1% year-over-year to 239 billion JPY, while segment profit is expected to decrease by 2.5% year-over-year to 37 billion JPY. In the semiconductor industry segment, sales are expected to increase due to customers ramping up production amid a market recovery. However, for the automotive industry application, revenue is expected to rise while segment profit is expected to decline due to factors such as decreased sales of large presses and automotive battery manufacturing equipment, as well as rising procurement costs resulting from the situation in the Middle East. The segment profit margin is expected to decline by 0.4 percentage points year-on-year to 15.5%. Starting on page 25, we will explain the demand trends and outlook for the seven major construction equipment categories. The demand figures for the seven major construction equipment categories include the mining equipment. The figures for fiscal 2025 are preliminary estimates based on our projections. Demand for fiscal 2025 appears to have increased by 5% year-on-year. For fiscal 2026, we anticipate a year-on-year decline in demand ranging from 0% to -5%. In addition to decline in demand in Indonesia, we expect a decrease in demand in Middle East and neighboring countries due to the deteriorating situation in the region. Page 26 outlines the demand trends and forecast for the North American market. Demand for the FY 2025 appears to have increased by 3% year-over-year. Demand remains strong in sectors such as data centers and other infrastructure, rentals, and energy. The demand forecast for the FY 2026 is expected to remain on par with the previous year. We anticipate the infrastructure and energy sectors will continue to drive demand as we go forward. Page 27 shows the demand outlook and demand for European markets. The demand units for FY 2025 was expected to increase by 4% previous year. The demand outlook for FY 2026 is expected to be 0% to + 5%. In Germany and the U.K., public investment demand is expected to lead overall demand. We are expecting to see the robust demand. Page 28 covers demand trends and outlook for the Asia market. Demand for the FY 2025 fiscal year appears to have increased by 5% year-on-year. In Indonesia, although the demand for mining machinery declined due to sluggish coal prices, overall demand increased due to rising demand for general construction machinery such as food estate projects. In India as well, demand increased driven by aggressive infrastructure investment. The demand outlook for FY 2026 is projected to be a decrease of 5% to 10%. While demand in India is expected to remain robust, demand in Indonesia is forecast to decline significantly due to the government's policy to reduce coal production and impact of introduction of the B50, which is biodiesel fuel regulations. Page 29 outline the trends and outlook for demand in a Japanese market. It appears the demand over the FY 2025 declined by 13% compared to the previous year. We expect demand for the 2026 to remain at the same level as the previous year. Although nominal construction investment is increasing due to inflation, real term growth is stagnant due to soaring material and labor cost, and there are currently no signs of recovery in demand. Page 30 presents trends and outlooks for the prices of key minerals related to demand for mining machinery. We expect copper and gold prices to remain at high levels going forward. While both low-grade and high-grade thermal coal are currently trending upward, we'll continue to monitor future developments closely. Page 31 shows a trend in demand for mining machinery. It appears the number of units in demand for fiscal 2025 decreased by 10% year-on-year. Overall demand declined due to a significant drop in demand for coal-related machinery in Indonesia. The demand forecast for fiscal 2026 is expected to be a 10%-15% decline. Although demand for copper and gold mining equipment is expected to remain at a high level, overall demand is projected to decline due to weak coal-related demand and the completion of the replacement cycle in North America and Oceania and impact of the situation in the Middle East. Page 32 presents a sales outlook for the Construction, Mining, and Utility Equipment segment, including equipments, parts, and services. In fiscal 2025, parts sales increased by 0.4% year-on-year to JPY 1,055,200,000,000. The aftermarket segment as a whole, including services, accounted for 52% of total sales. Excluding the impact of Forex, total aftermarket sales increased by 1% year-on-year. For fiscal 2026, parts sales are projected to increase by 2.2% year-on-year to JPY 1,078,500,000,000. Aftermarket sales' overall sales ratio, including services, is projected to be 53%. Aftermarket sales excluding Forex effects are projected to increase by 3.1% year-on-year. Page 33 presents outlook for capital expenditures and other investments for fiscal 2026. Excluding investments in rental assets on the left, capital expenditures are expected to increase year-on-year due to investments in production and sales facilities, as well as the reconstruction of the head office. Research and development centers, as shown in the center, are expected to increase year-over-year due to focused investment in adopting diverse power sources and automation. Fixed costs shown on the right incorporate effects of the structural reforms. They are expected to increase year-over-year due to wage increases and higher R&D expenses. Next, I'll explain the main topics. Page 51 now. Komatsu has acquired a remanufacturing business for construction and mining machinery components and parts from SRC of Lexington through its wholly owned subsidiary, Komatsu North America, Komatsu America Corp. In 2009, Komatsu transferred its North American remanufacturing business to SRC of Lexington, and since then has continued to do business with the company as one of its most important suppliers for Komatsu's North American remanufacturing operations. With this acquisition of SRC of Lexington's remanufacturing business, Komatsu will further expand this operation by establishing a new dedicated manufacturing facility in North America, one of the largest markets for construction and mining equipment. Page 52. In December 2025, Obayashi Corporation, Iwatani Corporation, and Komatsu conducted demonstration tests of a hydrogen fuel cell- powered hydraulic excavator during rockfall prevention work on the Joshinetsu Expressway. The test confirmed the several benefits, including operational performance equivalent to that of conventional diesel-powered models and reduced operator fatigue due to the absence of vibration. At the same time, we reaffirmed the challenges facing practical implementation, such as the need for higher capacity and a faster hydrogen supply and refueling systems. The three companies will continue to conduct the studies and verification tests aimed at practical implementation. Page 53. Komatsu exhibited at Conexpo International Construction Machinery Trade Show held in Las Vegas, U.S.A. from March 3rd to March 7th. The company showcased a new generation of vehicles, including bulldozers and hydraulic excavators equipped with the latest features, such as Intelligent Machine Control, as well as articulated dump trucks designed to further improve operational efficiency. Komatsu highlighted in its initiatives to leverage data from vehicles and digital solutions to enhance customer productivity and safety while reducing total cost of ownership. Page 54. Komatsu has acquired Malwa Forest AB, a forestry machinery manufacturer, through its wholly owned subsidiary, Komatsu Forest AB. By acquiring technological capabilities and product lineup for a lightweight, compact, cut-to-length forestry machinery specifically designed for thinning operations, a segment in which Komatsu previously had no presence, the company will contribute to value creation across the entire circular forestry process. Page 55. We have reached a cumulative total of the 1,000 units for our ultra-large autonomous dump truck equipped with autonomous haul system, AHS, for mining operations. Since introducing AHS for the first time in the world in 2008, the cumulative total haulage volume has exceeded 11.5 billion tons. That concludes my presentation. Now we would like to move on to the Q&A session. First, we would like to take any questions from the people here. Maekawa-san from Nomura, please. This is Maekawa from Nomura. Thank you very much for your time today. I have two questions. First, regarding tariff impact and price increases. Hosotani-san, you mentioned this in your presentation, but last fiscal year JPY 64.2 billion was the cost impact. I think originally you were expecting JPY 55 billion and about JPY 120 billion, which is a quarter multiplied by four, was going to be your expectation for FY 2026. What kind of changes did you experience in reaching your results for FY 2025? Can you confirm that first? What have you accounted for for this fiscal year? This is Hishinuma speaking. Regarding U.S. tariffs, there are no major changes on a U.S.D basis. We were converting it at JPY 140 before, but now it's at JPY 150 against the USD, or to be, more exact, JPY 150.5 against the U.S.D. On the U.S.D basis, it's not different. It hasn't changed. It's just because of the FX impact. For FY 2026, the impact will materialize on a full- year basis. It was about around $600 million before, but it should reach around $900 million. Other than that, we have accounted for refunds as well, which is equivalent to the reciprocal tariffs that are likely to be refunded. That's what we have accounted for. Thank you. If it's $900 million, it's about JPY 135 billion. For steel and aluminum, how much of an increase, how much of a decrease are you expecting from reciprocal? The JPY 30 billion refunds are also included in the JPY 135 billion. When you look out at March 28, is it going to become JPY 165 billion? Can you break down the JPY 135 billion? What has been going up? What has been coming down? Can you talk about how it's going to rise from the JPY 64.2 billion? Well, regarding the period, before it was from the middle of the year. At the beginning of the year, we did have inventory from the previous year, we started paying the tariffs at a later timing from a payment point of view. From a P&L impact, we had year-end inventories, so it was relatively low. In fiscal 2026, from the beginning of the fiscal year, we are making payments. There is a period difference. Regarding the details, reciprocal tariffs may be gone, but for steel and aluminum, we used to calculate the content in order to reduce the level of tariffs paid. Now it's at 25%, the impact is greater. That is one reason why it's greater than before. From that point of view, for the refunds, that's about last fiscal year's portion. For fiscal 2027, we won't have deferrals from the previous fiscal year, therefore we will see full impact. If nothing changes, it's likely to be JPY 165 billion next year. Of course, that 10% or Article 122, when that's going to end is a question mark. Well, if we're working off the assumption that the same thing is going to materialize for the next year, that's what we're accounting for, but we are not sure. In that case, it's JPY 135 billion. For next year, the following year, if sales and production is not going to change, it should be about JPY 130 billion for FY 2027 as well. This year it's JPY 30 billion less. Excuse me, for the results for FY 2025, we already said that it was JPY 64.2 billion. For FY 2026, originally, we were guiding JPY 130.7 billion or JPY 130.8 billion. Because of the refunds that we were explaining, which is worth $200 million, which we view as JPY 30 billion in Japanese yen terms. When you account for that, it should be a little bit over JPY 100 billion of an impact on our P&L. Got it. Thank you. For price increases. On page 22, when you look at the projections for selling prices, it's +JPY 68.9 billion. Hypothetically, even if you don't get the refunds at JPY 130 billion, you should be able to make up for it through price increases. Are you making progress, and have you gained visibility already? Can you also speak to that? This is Hishinuma speaking. Regarding pricing, we did a bottom-up approach looking at the business plans of our subsidiaries, but price increases are also accounted for for the U.S. Caterpillar is not raising prices, and those are the circumstances, so there may be a risk. For the tariff increases in the U.S., we won't be able to absorb it completely just with the U.S., so global price increases need to happen. That's what we're accounting for. Understood. My second question is for this fiscal year and your view on volume. Also going back to page 16, in light of the Middle Eastern conflict, you have reduced sales by JPY 90.1 billion. Last year when, there were some tentative assumptions for GDP. As much as you can see, what can you see? What can you not see? What are the assumptions that led you to JPY 90.1 billion? Because in mining, when energy prices are high, I think that may also serve as a positive. I was wondering how you view this situation. This is Hishinuma. First, regarding demand for the Middle East, a 60% decline is expected. That has been accounted for, 60%. Due to the impact from the Strait of Hormuz, we believe that costs are likely to increase and especially, negative impact on countries in Asia. We're expecting sales to decline. When it comes to higher coal prices, there is a chance that they may stimulate demand. When you look at countries like Indonesia, it's true that, what originally used to be JPY 40, JPY 50 a ton are now reaching JPY 60 a ton. Even so, we are seeing a higher idle standby rate of equipment, and we're not sure if this is going to continue or not in the future. Demand has not really picked up. Currently, people are still on the sidelines waiting and seeing. There may be an opportunity, but so far we have not accounted for that in our expectations. Just to add a comment to that. Last year, U.S. tariffs just started, it was hard to account for it in our guidance. Based off IMF predictions and so forth, we have viewed how much GDP is likely to decline and what's going to happen to demand, that is why we accounted for a JPY 50 billion decline in sales. The global economies have not yet fallen. We try to account for risk as much as possible to the extent that we can calculate. The Middle Eastern crisis, we don't really know its impact clearly yet, but our way of thinking is the impact from the Strait of Hormuz is likely to continue. That's the assumption we have. Because we are dependent on crude oil as well as LPG, like in regions like Africa as well as Asia are likely to be affected. Like Hishinuma-san explained, we are expecting a demand decline in Asia as well as in the Middle East, leading to a sales decline in turn. Accounting for our gut feeling that we have experienced from the past, we have accounted for a JPY 90 billion impact. Due to higher crude oil prices, we are already seeing material prices increase that are crude oil derived, and that impact is JPY 18.8 billion. This is purely looked at as a cost increase. JPY 90 billion of volume decline and JPY 18.8 billion of a cost increase SVM-wise is what we've assumed due to what I've just explained. On the other hand, of course, the impact may be greater than our assumptions, or the crude oil derived goods may fall into a shortage, which may affect our production. That is still not known, so we have not accounted for that negative impact. Thank you. I would like to move on to the next one, Sasaki-san from UBS. Thank you. This is Sasaki from UBS Securities. I got several ones, but the first question is the figures I always ask you. Page 22, this waterfall chart and volume product mix and also the cost variance. Looking at the page nine and page 22, the plan and actual performance, and there have been some figures related to tariffs, but could you please give us the details around those factors? This volume mix has been negatively contributed to your performance. The - JPY 32.2 billion, that's in your plan, but what gets you to that number? Thank you. This is Hosotani speaking. First, page 9, page 24 and page 25 variance. First, in segment profit, JPY 72.6 billion of the volume mix and product mix difference. Just hold on a moment. I'm sorry. Oh, this one. First, JPY 25.8 billion for the volume difference, and that was a negative. Product mix, JPY 25.1 billion. That's included. Factors for this is that as we explained, electric dump truck, as we explained those up until the last fiscal year, it's not that they were able to enjoy the higher profitability, but the mix increased for this electrical dump truck. Chile contract business margin declined slightly. Regional mix had negatives here. Among the region, the highest profitability comes from Indonesia. Sales volume significantly decreased in Indonesia market, and that's where regional mix had seen an impact from that, and JPY 19.6 billion approximately. Moving on to the right, production cost, -JPY 81.6 billion. Let me give you the breakdown for that, which includes a U.S. tariff cost increase, JPY 64.2 billion. This is only applicable to the construction equipment of the JPY 64.2 billion and other ones like the variance coming from the industrial machinery and others. Also cost variance. Let me give you the breakdown for that. From third party, we purchase components, the major components, and those costs started to inflate. That's why that there is the major variance of the cost of goods. Fixed cost variance, fiscal 2024 to 2025, the labor cost significantly increased. Oh, apology. Apology. Hold on a moment. For fixed cost, JPY 20 billion comes from the labor cost. SCP projects were underway. Also the variance in comparison between 2025 and 2026. JPY 31.8 billion of the volume that's been included here. Of which the volume mix amounts to JPY 40 billion. JPY 40 billion, the big chunk comes from Indonesia. Hold on a moment. Other than volume mix, the regional mix and product mix are written here. FY 2025, the losses we have to make were all gone for 2026. JPY 31.8 billion included volume mix, and that amount to JPY 40 billion. That's all from me. What about the variance of cost of goods? I guess the cost increases comes from the conflicts in Middle East. Yes. Fiscal 2025 and 2026, the JPY 49.6 billion for production. The U.S. tariffs impact is included here in this number. About JPY 67 billion is included here. At the same time, the JPY 30 billion of the refund is included, so the net it all out, the JPY 37 billion of cost increase is included here. Other cost of goods variance, JPY 10 billion some is also included. Thank you. My second question, let me take this opportunity to ask this question of Hosotani-san. That you took office as CFO. Give us your commitment as a CFO as we look ahead. For example, as a Komatsu, the capital efficiency improvement and the better margin, I mean, there could be a number of the lists that you want to attain, but you're succeeding Horikoshi-san and took office as CFO, and as one of the members of the top management team, what are the things would you like to achieve? I mean, this is your first time to be here in a financial briefing. Do you have any commitment would you like to make? That's my second question. Well, you set a high bar for me, actually, let me try to answer. My predecessor, Horikoshi-san, mentioned this too. Basically, we always have to be mindful of the shareholders in running the business, I would like to be contributing to the way we run the business. Shareholder returns and b alance sheet and ROE. Those indicators are the things I always look. For example, in comparison 2025-2026, the net income... I mean, volume declined because of the conflicts in the Middle East, so net income declined. Business size and the revenue size need to expand from our perspective. To that end, we are engaging in various activities. As we expand the business size, I would like to be of a support for the better decision on a management level so that we are able to have a better top line. I would like to engage in those activities as CFO. Is it more of like a better top line? Is it one of the things would you like to commit? That's what I get from your message. What made you think that way? Well, for example, as we look at the current status, the conflicts in the Middle East and there are impacts from that. I mean, it takes time until the situation will go back to where it has been. In the longer term, this is the one-off factor. U.S. tariff is concerned, some say this is a one-off factor. At the end of the day, this is about the balance of the export-import of the United States and other countries, and to try to correct this imbalance. These costs are permanently are subjected to occur. That's why we need to continue to contribute to cut back cost. Net profit size need to be secured to an extent, which means that we need to have a better top line. Thank you. Let's take the next question. From SMBC Nikko, Taninaka-san. This is Taninaka from SMBC Nikko. Thank you for taking my question. Regarding mining equipment mainly, I have two questions. For metal prices, including coal prices, they are rising lately. In the next new fiscal year, when you add up the after services, you're only accounting for about 3% growth year-over-year. I think you're being conservative when you think about underlying trends. When you look at the underground mining equipment manufacturers' results, their growth rates look stronger. Can you talk about the backdrop to how you derive these assumptions? This is Hishinuma speaking. For mining equipment, as you rightly said, prices have been going up for obviously copper and gold and so forth. On the other hand, for equipment and the way we look at demand, the replacement cycle is pretty long. There's ups and downs. Also when you look at it by region, there are regions where we're expecting higher demand and other regions where we're expecting lower demand. That's for equipment. The growth we're expecting for the aftermarket business may look small. However, we did see drop-offs that were quite significant in Indonesia and also in the Middle East. Including reman, we have been growing the business, but all in all, the numbers may not look as dynamic as you were expecting. My second question is with respect to the replacement cycle, when you talk that it has run its course from 2011 through 2013, demand for mining equipment grew quite substantially, and then you have the replacement cycle. Are you trying to say that the message was that the replacement cycle is over? Or are you saying that over the short term, there are ups and downs and replacements are at a standstill at this moment? For March 28, are you trying to imply that demand is going to go down even more? Well, the cycle we're referring to is not about the 2011 cycle. It's more about whether we have big deals or not in recent years. For example, in North America, in 2024, 2025, for North America, there were some big deals. We have been explaining that some big deals have been absent in 2025 because there were more in 2024. There were less in 2025. In 2026, we are expecting at this moment less of large deals. Regarding the sheer volume of general deals, we are actually seeing an increase. It's just a matter of whether or not we are carrying large deals or not. For example, in the case of Australia, in fiscal 2026, we're not expecting that much of big deals, so to say. That's what we're referring to. For super- large dump trucks that we manufacture in North America, when you look at our production plans and compare 25 with 26, production volume is not going to change that substantially. Even if the sales may not be recognized in 2026, there is a possibility that it's going to go into 2027 sales. Rope shovels are being produced at a 100% capacity, and we are also working on fiscal 2027 already. Because copper is doing well, we're not really expecting that much in decline. However, we need to monitor closely the trends in Indonesia. Thank you. That's all for me. We'd like to take question from Adachi-san from Goldman Sachs. Thank you. This is Adachi from Goldman Sachs. Thank you. I have two questions, too. The first one, the mining equipment. As Hishinuma-san shared, Asia market, usually coal prices are on the rise, which is positive, but diesel prices and operating costs have been boosted, which is negative, and negative outweighs the positive and the dormant, the vehicles increasing. What are the changes that you have seen for dormant and idle vehicles? I think up until Q1 last fiscal year, there was a last-minute demand was very strong and that sapped demand in Q2. As you look ahead, Q1, do you see the subsequent drop from the fiscal year, but do you think that they'll be flattish after Q2? You think that Q2 and beyond, do you think the moderate decline continues, especially for the Indonesia mining equipment market? Thank you. Thank you. For Indonesia, as you raise a number of the points, the idle vehicles ratio and what are the historical trend? For example, 2024, the end, 5%. They used to be 5%. Fiscal 2025, in June, 8.5%. That was up to 9.6% in January and 10% afterwards and 17% this January. The coal prices goes up and even the workload increases, and they're able to handle the increasing volume with the coal prices with the current volume. 40, B40, and now starting July, it starts B50 and production volume 800 million tons, 600 tons, 600 million tons. There are some talks of increasing the volume throughout the year. We are not 100% confident that there are bound to increase. Fiscal 2026, I believe, that we are seeing this as cautious note. Okay. Thank you. As Tanigawa-san and yourself discussed a bit, Indonesian coal and the precious metal have been pretty strong in prices, and the production plan is at full, as you said. It's accelerated. Would you like to accelerate further on that point? In North America, production capacity ramp up. Rope shovel might be at full. The electric dump truck production plan for fiscal 2026 and 2025 will be equivalent, I said. Versus what it has been in the past, there were some time that where we produced more. At the full capacity, if we produce them, and there could be some more availability. In North America market, we haven't gotten to the point where we are doing CapEx. Okay. Thank you very much. Next one is cash flow. The buyback is announced. The previous year and the two years ago, like those two years, you have announced JPY 100 billion. What are the decision-making process like? Behind that free cash flow assumption were, would have been calculated how much free cash flow you're expecting. JPY 160 billion is expecting, I guess. How much of the operating cash flow and the working capital level, and what are the production assumption to the working capital? Maybe you can have a breakdown approximately. Do you have any up and down of your planning for production? This is Hosot ani speaking. For free cash flow, fiscal 2024, free cash flow, JPY 300 billion or some. That was fiscal 2024. It's been a few years that JPY 250 billion to JPY 300 billion of the free cash flow. That's our track record of the free cash flow. With this amount, dividend and buyback of JPY 100 billion, we have enough excess capacity to do that with this amount because it amounts to JPY 300 billion. For FY 2026, free cash flow or as planned of JPY 250 billion+ and deposits and others. I mean, sales were not growing and profits declined, but the working capital is expected to improve. As a result, we are able to generate equivalent level, JPY 300 billion+ of the free cash flow, are our commitment. That will continue for three years. M&A portion excluded, then JPY 1 trillion. That's a commitment and goal we set ourselves. Okay. Thank you. There are people raising their hands on Zoom, so we would like to take that question from the Nikkei. Otake-san, please. Can you hear me? This is Otake speaking. Yes, we can. Thank you very much for the presentation. Just wanted to confirm again. First question is regarding the impact from U.S. tariffs. Please let me sort it out. For the year ended in March 2026, the impact was JPY 64.2 billion on your P&L, is that correct? That is correct. JPY 64.2 billion for construction equipment. That's for construction equipment. For industrial machinery, there is a bit of tariff impact as well that has been incurred. Thank you. Up until the previous results, according to the materials, you were saying JPY 55 billion of impact from tariffs. Does this include industrial machinery as well on top of construction equipment? It's only several hundreds of millions JPY attributed to industrial machinery, so the level doesn't really change. It was about JPY 400 million of an impact from industrial machineries and others. Got it. From the assumption of JPY 55 billion, the reason why it increased to JPY 64.2 billion is due to FX impact, right? Yes, exactly. No differences on a U.S. dollar basis, broadly speaking. It's just due to the differences in conversion FX rates. For this fiscal year, for the year-ending March 2027, excluding refunds, you're expecting JPY 130.8 billion. Is that correct? That is correct. Got it. The impact amount, the reason why it's higher, you were saying that the content calculation has been abolished, and that has had an impact. Can you walk me through what that means and entails? Regarding content. For steel and aluminum content, you calculate how much it's included for as part of your product prices or cost. That is subject to steel and aluminum tariffs, and the rest to reciprocal tariffs. By calculating the content, we have been able to reduce its cost. Even for derivatives, it is 25% now. When we were calculating the content, it was less than 25%, basically. By doing a precise calculation of content, you have been explaining from before that you are able to reduce the cost. I guess that is not possible anymore. In order to reduce tariff impact going forward, such as reviewing our supply chain, our logistics, I think that will be key. With respect to these measures, in order to reduce the negative impact, what are you focusing on, or what would you like to focus on going forward? Last year in April, we shared with you various types of countermeasures we were planning for. For the products that used to go through North America that went to ultimately Canada or Latin America, by shifting to direct shipments instead and shipping out to Canada directly, we will be able to alleviate the impact, and that is fully contributing already. There are some parts that are going through the U.S. as well, but by directly shipping and also creating warehouses in Panama, we are trying as much as possible to reduce the impact. For countermeasures, for steel and aluminum tariffs, not by simply just paying for it, but by calculating the content, we had been trying to minimize the tariff impact. Now it's going to be 25% across the board, so that countermeasure is no longer viable. Reciprocal tariffs are now gone, so on a net-net basis, the actual amount of payments are slightly up. You referred to the P&L, the impact on 2025 and impact on 2026, because of more inventory impact, it's going to become greater impact. The difference in tariffs rates have also been are expected to impact us as well. I see. You are working on various initiatives. In order to mitigate tariff impact even more, one kinds of feels that it may be challenging, but what would you like to do additionally? Do you feel that you will be able to reduce its impact? Of course, increasing production in the U.S. is something we are considering, but from a cost point of view, it is also challenging, which is preventing us from doing so. I think it's more of a build-up of various improvements, and hopefully we could raise prices to make up for it globally or reduce costs globally as well, so that we can ensure that we are profitable. Sorry for going on, but for price increases, you were talking about Caterpillar and that they are not raising prices recently. Currently in the U.S. as well as in other regions, when you look across the competitive landscape, how are the price increase trends from your point of view? How do you view the market? We have been communicating this from before. From several years ago, in accordance with higher steel prices, we had been increasing prices. Our competitors have been more bullish in raising prices. We were a little bit behind. In order to catch up, we have continued to steadily raise prices. Now, steel prices have calmed down and price increases just limited to higher tariffs is not really happening, and that is why we are seeing difficulty here. Thank you. My final question is about the Middle East and its impact. JPY 18.8 billion of a cost increase is what you are expecting. Can you break it down? How would it look like? Can you share with us as much as possible, the breakdown? Costs are rising and parts are rising due to oil-derived products and also logistics, transportation costs because of higher fuel cost that has been accounted for as well. The majority is because of higher parts prices and cost increases. Meaning fuel, oils, paint, gas that are oil-derived. Material prices have already been going up quite a lot, that has been accounted for as a cost increase. I see. Procurement cost increases is about maybe 80% of the cost increase and maybe 20%-30% associated with seaborne transportation. Maybe it's like a 70/30 split. I see. Thank you. Thank you. I would like to take questions from anyone joining us online. BofA, Hotta-san, please go ahead. This is Hotta from Bank of America. Thank you so much for your time. I have two questions, too. With the conflicts for the Middle East, that has impacts on volume and other mix. On the production front, you have uncertainties, you haven't incorporated them into the guidance, as you said. If possible, on production front, how much impact do you think that there is? You said there is nothing for now, given the current situation, how much potential impacts you might have to suffer from? Are you saying that you have enough inventory, you're able to have the muted impacts from that on the production front? Give us the details around the production areas, if there's anything you can share with us. Well, first in production area or production front. We try to sustain production work, we try to work with suppliers. We try to secure enough works and components. How far we are able to secure them? It's not to say that we're able to secure them for six months and one year ahead. We always have to cement wherever we are, and we try to secure production. To the worst-case scenario, naphtha and other materials could have issues in the future. If and when, if we can't secure some of the materials from plants for any of the one single supplier and the production itself could be impacted. When will that happen? We're still not sure. That's why we haven't incorporated the potential factors into the guidance this time. Okay. Thank you. My second question is mining equipment. You said replacement cycle. You said there is a completed replacement cycle now, but fuel is on the rise. A little bit outdated equipments needs to be a newer ones so that uses less oil or less fuel. Is that kind of the replacement demand that you're saying? Well, it's not going to be replacement cycle you're going to see in the passenger cars. Okay. To stay on the same topic of the fuel prices, if you look at the Australian market, diesel shortages is very dire. SME mining companies Sorry to say, the shortage of diesel and they need to compromise the utilization ratio recently. BHP has no issue whatsoever because they are big enough. Australian market is primarily a market where the utilization ratio for the machine is declining. Is that something you are saying or isn't there any impacts on your operation whatsoever in terms of the diesel shortage? Well, we haven't witnessed any of the specifics, be it suspension of the operation itself, but there are risks, yes. Okay. Thank you very much. That is all from me. Thank you for your question. There's another question from online. McDonald-san from Citigroup Securities. Can you hear me? Yes, we can. This is McDonald speaking. Thank you for your time today. I have a question about page 26 in North America. Looking at the right-hand side for Q4, for the seven PLs, it was +7%. Going back, I think for the first time in several occasions, it was a good number, maybe several years, where you're seeing an uptrend. Even so, for this fiscal year, for volume, you're expecting flattish demand compared to fiscal 2025. The non-housing space, when you look at the segments like mining, energy, road construction, and data centers and so forth, for this fiscal year, I kind of think that you're conservative in your projections for North America this year. Of course, I'm sure you have a lot of concerns in your heads, why are you guiding flattish demand? Shouldn't you be guiding, having an assumption that is more positive? That's my first question. Thank you for the question. For North America, as you said, what we show in the material for page 26, at the bottom right, we show the breakdown of demand by segment divided into rental, energy, infrastructure that are performing positively across the board. It was only housing as well as government related that was negatively contributing. All in all, the trends are positive. After completing FY 2025, we saw +3% growth in demand. When you listen to what customers are saying even, they have about order backlog of six months to 2.5 years. We do believe the market is quite strong. Our assumptions are flattish, but we're not really anticipating any major negatives. Yes, you can say that we are being conservative. From a regional point of view, Indonesia apparently had the highest profitability in the past, but if you're so bearish about Indonesia, the highest profitability as a market, I guess, is coming from North America in the non-housing segments. Do you think that's true that it has the highest margins? If you just look at SVM, excluding fixed costs, the procurement cost inclusive of tariffs is quite big. No, the margins are not the highest in North America. Okay. Thank you. It will continue to be challenging. Just wanted to confirm another thing about page 9, I think. In your comments, Hosotani-san, for last fiscal year and the negatives from product mix was EDT's. Is this one-off or for electric dump trucks and its profitability, is it relatively low? I just wanted to confirm that point you made. This is Hosotani speaking. Our dump trucks, it's because of our dump truck mix. Globally, we sell. The regions where dump truck margins were high was Indonesia. For Indonesia, we have been selling rigid dump trucks mainly. For electric dump trucks are being made in the U.S. on the other hand. Compared to rigid dump trucks, the costs are greater due to its structure. Sales in Indonesia, especially for mining, has been dropping off. Product mix-wise, rigid went down whilst EDT composition has increased. From a product mix point of view, because of more electric dump trucks, average margins have come down slightly. I see. We shouldn't be that concerned, I guess. Correct. Finally, I have a quick question on topics and on page 50, you talked about AHS and reaching 1,000 units in volume. I think that's great. Going forward, do you have any numerical targets as to how to grow the business even more? That's my final question. Well, in the strategic growth plan and our targets, it was 1,000 units in fiscal 2027. That was our original target, but we have been able to reach it beforehand. We are thinking about raising the target up to 1,200 units instead. Compared to the pace we saw back in fiscal 2025, it looks like it's going to decelerate. However, new customer implementation is likely to increase, and in that case, the rate of increases is going to look like it's decelerating, but we will continue to work on its implementation. How about margins? Compared to rigid dump trucks, is it lower? Well, we talked about electric dump trucks earlier, so that in itself is not that high. This is an AHS system, and we receive income from subscriptions as well. That is a positive. I see. Thank you very much. Thank you. We are counting down some time. Anyone who has questions here? Okay, I would like to take a final question from the floor. Narita from Mizuho Securities. Sorry, I'm repeating myself, but page 28. Here in Indonesia, mining equipment demand doesn't look like it's declining so much. Yes, I do understand that there is a declining market, but the Chinese manufacturers are trying to make inroads into mining equipment more and more. Against the outlook in Latin America, the Indonesia and those smaller kinds of the smaller dumps were utilized in those Indonesia. Other than the market, there have been anything that you can share other than competitive landscape? Also, you said Indonesia, it has the highest margin, whereas coal prices try will give you the headwind and that might be changing in the future. With yourself, therefore, do you see any capacity to increase further over performance in Indonesia? As you see the bottom right, page 28, you see the demand trend, and that might be misleading, but you see by sector here. In terms of the size, the smaller equipment for mining are included here. FY 2025, we are shipping a lot of those smaller ones and 100 tons demand is on a decline. That sounds like that doesn't add up. The demand for 100 tons, the customer tried to hold back the purchase, that's why we are struggling. FY 2026, the coal production volume is going to be struggling. We work with the distributors to secure enough volume here. Okay. Clear. Thank you. Finally, Tai-san from Daiwa Securities, we would like to take your question, remotely. Please keep it brief. Yes, I'll keep my question brief. I have a question for Imayoshi-san. With respect to the Middle East and tariffs, that was the main topic for today's call. Even if you add back those numbers into your guidance, profitability is expected to be about the same as last year or a little bit down, whether it be on a company-wide basis or for the CNME segment. I think it all comes down to inflation maybe. How about striving to raise profitability by making up for it? Do you have that intention, or are you fine with this kind of margin? Would you like to instead raise top line? You have just started a new fiscal year. Imayoshi-san, of course, can you talk about some themes that you're considering as a company? Of course, countermeasures for the Middle Eastern conflict may be one. I was hoping that you could share one or two things on your mind. Well, as stated in the strategic growth plan, we want to have profitability and growth rates that exceed industry levels. It's not just about growing top line, but also profitability as well. Overall, demand-wise, we are at a juncture where it's broadly flat. It's not just tariffs impact. Indonesia's drop-off is also a negative when it comes to profitability. We will steadily implement the measures that we're stating in the strategic growth plan. We will work on product development as well as we'll think about ways to grow the aftermarket business. We would like to ensure that we're able to generate results so that we can also enhance profitability. Thank you. I see. That's all for me. Thank you very much. This concludes the Q&A session.