The time has come to start the web conference on Q3 fiscal year 2020 earnings for the media for Hitachi, Ltd. Thank you very much for attending this web conference, despite your busy schedules. We have the information available on the IR site, as well as the news release site of Hitachi, Ltd. for your reference. Let me introduce the speakers to you. Yoshihiko Kawamura, Senior Vice President and Executive Officer, CFO of Hitachi, Ltd., Tomomi Kato, General Manager of the Financial Strategy Division, Yasuo Hirano, Executive General Manager of the Corporate Brand & Communications Division. The outline presentation will be provided by Mr. Kawamura. We'll be switching the screen. Mr. Kawamura, please. Thank you very much for attending this web conference, despite your busy schedules. We will be announcing the Q3 fiscal year 2020 earnings. In the third wave of the COVID-19, we are still able to maintain our business. We appreciate this very much. I would like to express our respect to the respective people who have made this possible. I would like to start off with the basic outline. There are three characteristics regarding the budget that we have formulated at the beginning of this fiscal year. It was very conservative because of COVID-19, and it seems that we are likely to achieve this budget or even exceed this. We have achieved this level by controlling the COVID-19 impact. Regarding the environment, this is the first and foremost challenge. We have been able to capture significant volume of environmental business. We are able to report this to you today. Compared to fiscal year 2019, P&L earnings have declined. However, on the cash flow basis, we have had a very good record. This is something that is noteworthy. This is the basic background in which I would like to present the performance. Please refer to page three. Here, I have outlined what I have just mentioned, as well as the major topics for the third quarter. There are four key messages here. First is regarding digital transformation. We have been able to capture the wave of digital transformation. In particular, IT segment is driving Hitachi's performance overall, as mentioned here. In terms of operating income for the third quarter, we have reached a ratio of 13.5%. A very high level has been achieved in this regard. Number two, promoting business expansion in China. This is something I would like to refer to later. The Chinese economy is recovering. We are able to capture the recovery of the business in China, especially in the area of elevators. The business is very strong for us. As for the automotive system business, we are experiencing a market recovery in China, expanding our business. Thirdly, this is regarding the environmental and social value that I mentioned earlier. The environmental theme is very important for Hitachi's business. We have been able to achieve good results. As seen here, Hitachi Astemo, which has been created as an integration with the Honda parts company, we have been promoting the xEV-related business. In the summer, we have acquired the Hitachi ABB Power Grids. This is referred to as HAPG. More than half of the business we are capturing here is environmental related. In the third quarter, backlog is more than JPY 29 billion or JPY 30 billion. This is one quarter. It is achieving very good levels for Q3 orders at JPY 2.9 billion. The various applications, such as touchless, is being introduced, which we are capturing as our business as well. As I mentioned at the onset, cash flow remains very strong. This is one of the major characteristics of the third quarter's performance. Let me go into the numbers now. Please refer to page four. Here, we are looking at the revenues as well as operating profit ratio. Please refer to the graph on the left-hand side. The curve shows the adjusted operating income ratio, and the revenues are shown by the black bar, and the revenues for the fiscal 2019 as well as fiscal 2020 revenues are shown here. We are showing the numbers for Q1 to Q3. From Q2 to Q3, the dark gray should be noted. JPY 2.1 trillion has grown to JPY 2.2 trillion. COVID-19 is having a significant impact. However, having entered the third quarter, revenues have continued to grow. As for the curve, looking at the operating income ratio, the red is for the fiscal year 2020, and the gray curve is fiscal year 2019. You can see in the gray, the ratio has been recovering from 3.7%, 5.7% to 6.1%. You can see that on the right-hand side, the significant growth segments are shown here. Looking at the IT segment, for the red curve, we have shown here 13.5%, which is the highest record ever. For Smart Life segment below, automotive China business as well as in terms of consumer electronics, we have seen household appliances have seen a growth. Please refer to the next page. This is showing the Lumada business. The major topics for the third quarter are shown in the highlight here. We have been able to launch the alliance program with various partners, Amazon, AWS, Cisco, Google, and others. Big names, partners have been captured in our alliance program. We are working together in terms of promotional sales with these alliance partners. We believe that this will further accelerate our business going forward. Please look at the numbers now. On the right-hand side, in the middle is the bar graph showing the fiscal year 2019 and the fiscal year 2020 forecast. The revenues are shown here. JPY 1,037 billion. This year's forecast is JPY 1.1 trillion. We are assuming that we will see a growth of 6%. Let's look at the details. Red is the core business of Lumada, which is directly linked to the IT business. Gray is the related business of Lumada. Using IT, power grid, as well as railway business will also be captured. That is reflected here in gray. The core business is growing very strongly. The gray area has slowed down because of the COVID-19. However, we believe that it will continue to grow going forward. Specific details are shown on the right-hand side for Mobility, Industry, and Energy. We are able to offer applications and products for the market. We believe that the related business will continue to contribute to growth. Please look at page six. Further details are shown here in terms of the Q3 topics. In January, Hitachi Automotive Systems and the three Honda parts company, Keihin, Showa and Nissin Kogyo, have commenced operation. The four companies' strength will be brought to bear going forward. As mentioned here, we will be promoting technologies in electrification, autonomous driving, and connected cars. We will continue to make investments in this area. The second is related to home appliance business overseas. Arçelik and Hitachi Global Life Solutions agreed on a joint venture. Arçelik will have a 6% stake, and we will have a 40% stake. Some people may know of Arçelik. This is the home appliance of the largest conglomerate in Turkey. We will be working together with Arçelik as we grow the Hitachi business in terms of home appliances going forward. The environmental business is growing, and we will be integrating the Hitachi ABB Power Grids business. This will become an important arm for Hitachi in the environment-related business. In addition to Norway's substation that we have already announced, we will also have our first Germany-Norway HVDC interconnection, and testing has already begun. In terms of railway, Eversholt Rail has signed an agreement with us to develop the intercity battery hybrid train. These are all environment-related business. Regarding social value, on the other hand, various solutions are being offered. First, the remote touchless products are being provided. The contactless elevator solution is being provided. This business is receiving high evaluation because of the current environment. Human flow visualization technology is being demonstrated at the Tokyo Dome. The season will begin now. We believe that we can continue to develop new solutions in this area going forward. Those are the major topics. Please refer to page eight. This page shows the highlights of the results for the third quarter, as well as the Q1 to Q3 numbers are presented here. What is noteworthy is at the very top, we have sold Hitachi Chemical. Power Grid business has also been included, so there were some changes in our portfolio. The dark gray, the revenues, and light gray is showing the adjusted operating income. Left-hand side is the Q3 for fiscal 2020, the right-hand side is for the Q3 of fiscal year 2020. Adjusted operating income ratio is shown in the curve. Looking at the revenues for Q3, we have seen growth in revenues from JPY 2.1 trillion to JPY 2.2 trillion. For operating income, it is a decline, revenues have continued to increase. On the right-hand side, this is the performance for Q1 to Q3 accumulated basis. Looking at the right-hand side, the Q1, Q3 in fiscal year 2020 is shown here. It was JPY 316.9 billion in terms of operating income. Compared to JPY 445.6 of last year, we have reached the level of 70%. We are level similar to last year or similar at the level of the plan or even above. Please refer to EBIT, JPY 503.5 billion, year-on-year basis has increased by JPY 448.5 billion. EBITDA is JPY 855.4 billion, year-on-year basis increase by JPY 482.3 billion. Cash flows from operating activities to JPY 426.4 billion, increase of JPY 118.5 billion year-on-year. Cash flow remains very strong for us. Page nine. Here we have given the breakdown between the five sectors and listed subsidiaries. Regarding the five sectors, as mentioned in the highlights, increase in revenues, but a decrease in profit. Power Grid business has contributed significantly for the increase in revenues. We have two listed subsidiaries, Construction Machinery as well as Metals. They have been impacted by COVID-19, so they have decreasing revenues as well as earnings. In terms of revenues for five sectors, JPY 4.8 trillion. For the listed subsidiaries, JPY 1.1 trillion below. Comparing year-on-year basis for five sectors, 108% or higher than 100% for the listed subsidiaries, 60%. Adjusted operating income is also reflecting this trend. For the five sectors, JPY 308 billion, and the listed subsidiaries, JPY 8.9 billion. Adjusted operating income ratio will also reflect this. For five sectors, 6.3%, and the listed subsidiaries is 0.8%. The impact was very significant for the listed subsidiaries. Looking at the EBIT ratio, five sectors are 10.8%, and listed subsidiaries 2.2%, negative. The contrast is very strong between the five sectors and listed subsidiaries. The listed subsidiaries are focused on the upstream business, this is inevitable. Page nine. No, rather, page 10. From the left to right, we are comparing the Q1 to Q3 fiscal 2019 to Q1 to Q3 fiscal 2020. Revenues above and adjusted operating income below. The changes are shown in this waterfall chart. Please look at the upper side, looking at revenues. Starting at JPY 6.3 trillion, this is the starting point, to the right, JPY 5.979 trillion. The changes are shown from the left to right. Divesture of Hitachi Chemical has declined. Hitachi ABB Power Grids increased, foreign exchange adjustment, as well as others. As a result, we ended at JPY 5.979 trillion. Looking at the adjusted operating income, similar trends can be seen. Divesture of Hitachi Chemical, increased by the Hitachi ABB Power Grids on the right-hand side. Others include the various adjustments, -JPY 19.23 billion, ending at JPY 316.9 billion. Page 11. This table shows the financial position and cash flows. What is noteworthy here, is the balance sheet. The total assets should be noted. The gray shaded area shows the situation as of December 31st, 2020, in terms of total assets. Last year, total assets was below JPY 10 trillion, now, as of the third quarter, we have been able to increase assets above JPY 10 trillion, JPY 10.94 trillion. This is because of the ABB acquisition that is being reflected. You can see interest-bearing debt has increased to JPY 2.6 trillion, and the increase is on the right-hand side. We have acquired ABB, in part, financed by borrowing. That is the reason why we have seen an increase in this line. The ratio should also be noted. What I have already explained is reflected. The D/E ratio was very strong at 0.35x, but because of the financing using debt, it has deteriorated to 0.71x temporarily. In the near future, we should revert back to a level of 0.5x shortly. Cash flow is shown below. Cash flow position has been very strong. Cash flow from operating activities, compared to previous year, increased by JPY 118.5 billion. Cash flow from operating activities was JPY 426.4 billion. We had a major investment, and therefore, cash flow from investing activities was negative. Looking at the acquired free cash flows, excluding the M&A, was JPY 181.7 billion, which is an increase of JPY 174.2 billion. Once again, I'd like to emphasize that cash flow remains very strong. That was the three-month third quarter and the first to third quarter cumulative results. Next, from page 13, let me explain the full year forecast for fiscal year 2020. Please turn to page 13. The same diagram is shown here. Left side is the revenues, and right side is the adjusted operating income. Left side, revenues. The light gray is last year, and dark gray is this year. As you can see, revenue is down. As you can see on the right side, the operating income is JPY 420 billion. It is a decline year-on-year. In October, we announced JPY 400 billion. After three months, we now improved this by JPY 20 billion. It's both decline in revenues and operating income. The adjusted operating income is now up from JPY 400 billion to JPY 420 billion. Now, the cash items on the right side, second from the top, EBIT, JPY 680 billion in October. This is up by JPY 94 billion compared to the previous forecast. The net income is JPY 370 billion, which is JPY 70 billion up from the previous forecast. This is the record high number. This net income is record high. EBITDA is JPY 1,174 billion. This is +JPY 121 billion compared to the previous forecast. Cash flow from operating activities, as I mentioned earlier, is up by JPY 50 billion, JPY 550 billion. To repeat myself, cash flow is very strong. Next, page 14, please. Here, once again, let me explain the forecast by the five sectors and the listed subsidiaries. The trend is similar to the three-quarter cumulative numbers. The center part, the five sectors. From the top, revenues, JPY 6 trillion, 780 billion, and listed subsidiaries, JPY 1.52 billion. Year-on-year level ratio is around the same as the earlier numbers, so 107% and 62% respectively. Total consolidated revenue is JPY 8 trillion, 300 billion. This is 95% year-on-year. Adjusted operating income, JPY 391 billion and JPY 29 billion, and the total is JPY 420 billion. EBIT, JPY 699 billion and -JPY 19 billion, so total is JPY 680 billion. EBIT ratio is 10.3% and - 1.3%, total 8.2%. The bottom part, net income is total, JPY 370 billion. This is our forecast. Next. Page 15, please. Here, let me explain Hitachi Astemo. We integrated, and this is the number we are announcing for the first time. This Hitachi Astemo, our plan is as follows. This table, on the far left, you can see the previous forecast This is excluding the integration impact, Hitachi Automotive Systems numbers. In the center, you can see the integration impact and the forecast Hitachi Astemo numbers. To the right, you can see the acquisition-related amortization of intangibles. On the far right, you can see the net total. Revenues. Before the integration, the forecast was JPY 749 billion. Of course, the business increases with integration. Including the integration impact, it is JPY 974 billion, and the total, JPY 974 billion. Adjusted operating income before the integration, JPY 22 billion. This increases to JPY 32 billion. On the other hand, EBIT. In others, you can see -JPY 27 billion. This is the impairment. Hitachi Automotive. We had some partial impairment in the factory plants. The total EBITDA is JPY 52 billion on the far right. Because of the amortization of intangible of JPY 7 billion. EBITDA ratio, 5.3%. On the far left, you can see without the integration impact, 8.1%, and it's lower than this. This is because of the impairment. It's down to 5.3% because of the impairment. From next fiscal year onward, there will not be this big impairment. We think this will improve to 10%. Please understand this is a one-off level, one-off figure. Next page 16, please. The fiscal year 2019 revenue all the way to the right side. Like I explained in the third quarter, similar trends can be seen here. The divestiture of Hitachi Chemical, negative, and then Power Grid is added, that's a positive. Astemo integration impact in January, and the foreign exchange adjustment and others in far right, JPY 8.3 trillion. Adjusted operating income. Similarly, you can see the trend. JPY 661.8 billion is all the way to JPY 420 billion this year. Page 17. This fiscal year, we had large asset ins and outs. On the far right, you can see JPY 420 billion. From the left, JPY 420 billion to JPY 370 billion on the right. This shows the changes. The business reorganization profit, you can see the description in small letters, Hitachi Chemical. Then in medical, modality, the diagnostic imaging- related business will be transferred, so that's an impact. Agility Trains, the European train companies, part of this East stocks. The business is going well, so we sold part of it. This is plus JPY 435 billion. Next, Hitachi Capital. Impairment loss of Hitachi Capital stock and others. This is JPY -30 billion. Hitachi Metals and automotive system business, this is the impairment loss, JPY -60 billion. To the right, you can see this leads to JPY 370 billion. This is the fiscal year 2020 full year forecast. Let me just touch on the Appendix 2, page 19, please. IT segment. The center one, the adjusted operating income. Left side, two bar graphs is the first to third quarter cumulative last year and this year. The right one is the full year, last year and this year. 11.8%. The operating income ratio is very strong. JPY 232 billion operating income. At the bottom, you can see the reasons, the factors of income and decrease. Increase, decrease. The new application is being developed, and project management is being reinforced. Profitability is improving thanks to that. Next page 20, please. Energy segment. The center part again, FY 2019 and FY 2020 in the center. The dark gray, JPY 43.7 billion, t his is Power Grid acquisition result. On the bottom, you can see JPY - 71.8 billion. This is the related expenses. This is the amortization of the intangible. The total is JPY -14 billion. Industry segment. Likewise, on the center, adjusted operating income. In the beginning of the year, the entire industry controlled the investment, but now we're seeing a recovery. The income ratio is now up to 5%. Next, page 22, please. Mobility segment. There are two main points here, elevators and escalator business and the rail business. Dark gray is the elevator and escalator business, building systems. We are capturing the recovery in China. On the far right, FY 2020, we are recovering to JPY 63 billion. On the other hand, railway system, light gray. The production hub is in Europe, which is heavily impacted by COVID-19, and so we have a long list of the order, but we have to manufacture to turn this log into cash. Overall, this is a one-off event, so we are not particularly concerned about it. Page 23, Smart Life segment. We see some strong characteristics here. Dark gray is the home appliance. From JPY 23 billion to JPY 32 billion this year. In response to COVID-19, people are spending more time at home, they're replacing home appliances. We captured such demand and grew strongly. Light gray, this is high-tech measurement equipment, and we think this is also due to COVID-19. It's a slight decline, this is constantly contributing to our profit. Page 24, Hitachi Construction Machinery. As mentioned at the outset, it was heavily impacted by COVID-19, adjusted operating income in the center last year was JPY 75.5 billion. This year, JPY 39 billion, operating income ratio is 5.1%. Profit declined sharply. Page 25, Hitachi Metals. The financial results was already announced, I think you know the adjusted operating income in the middle last year was JPY 14.3 billion. This year, it's JPY -10 billion. This is because of the impairment treatment, it's unavoidable, but the materials business is the centerpiece, therefore, it's heavily impacted. Page 26 and 27 is by segment, please take a look at it later. Lastly, page 28. This is the revenues by market. In a clockwise manner, North America, Europe, China, Japan, ASEAN, India, and others. North America, in the circle, you can see the ratio between last year and this year, -8%, it's not fully recovered. Europe is +5%. It's an increase. As you see on the bottom, Power Grid was a positive factor, it's a plus. China is +8%. This is that we captured the recovery in China. Japan is difficult. Compared to last year, -11%. ASEAN, India is also difficult. On the other hand, other areas, +19%. This was areas, Middle East and Africa, where we were not particularly strong in the past, is now growing with ABB. This reflects the world economy now. As you see at the bottom, overseas revenue ratio is now up to 53%. This concludes my explanation. Thank you very much. We would now like to proceed to the Q&A session. Those of you with questions, please use the raise hand mark below. We will delegate the person to ask the question. Please unmute and state your name and affiliation. If it's unnecessary to ask the question, please click on the Raise Hand button once again to release the question. The floor is now open. Ihara, please unmute and ask your question. I have two questions. The first question is regarding Lumada, referring to page five. For overseas sales, what is the ratio of overseas sales? Please give us a breakdown between core and related business. Within core, what kind of services have been strong? Please elaborate. Regarding the partner program, how many partners you have today in the alliance program? Solution, hardware, service, I think that is going to be included in core. What is the current level, and what is the contribution made in terms of increased revenues? Regarding Lumada revenues, 2021 goal of JPY 1.6 trillion. I think for next fiscal years, the target is similar. Do you think it can be achieved through M&A? In North America, in such regions, what is the direction that you're going to be pursuing? Is it just to increase revenues, or rather to provide the best solutions in answering to the questions or the problems set by customers? Is that the case? Are you going to bring to bear your strength in manufacturing furthermore? If you have a very significant client base, are you going to be focused on AI, such as in the case of Malaysia? Please elaborate further. That's my first question. Answer. Regarding the Lumada breakdown, Mr. Kato will provide details. Regarding North America, I would like to elaborate further. First of all, regarding the original sales for this fiscal year, we have not disclosed a number. Let me give you the number for fiscal year 2019. For core business is 30%, related 50%, overall 40%. For this fiscal year, the ratio is unlikely to change this. Thank you. Regarding North America, nothing has been decided yet, and there is no progress made yet. In the past several years, we are trying to look for candidate partners, and dialogue is taking place. All options are open in negotiating today. For Lumada's related business, how the core business can be a link to related business is the major challenge. We have to make sure that we can establish a relationship to bridge this gap in various areas, in various sectors. We are now looking for the various companies and engaging in dialogue. We will continue this process going forward. Nothing has been decided yet. This is a process that is still ongoing. Question. Tokunaga, as well as CEO of Vantara, are they going to be involved? Yes, I think that is a correct understanding. Question. Regarding the environmental value. Decarbonization is being promoted inclusive of the value chain. 50% decrease in 2030, and by 2050, decrease by 80% has been proposed. Are you going to front-load these targets or review your target by 2030 inclusive of supply chain? Are you going to be carbon neutral, perhaps? What are the activities taking place in terms of this target? In order to achieve your target, will capital expenditures as well as R&D required? What is the current level that is being spent? Are there any initiatives that have been decided in this area? In the trend of decarbonization, renewable energy, the usage visualization is becoming more important. What kind of revenues can you expect in this area? What kind of expectations do you have? What kind of inquiries are you receiving? Please elaborate further, and if possible, give us a quantitative response. Answer. The points you have made are areas that we are working very hard today. We will have a new division in charge of the environment-related business, and we'll have the executive officers in charge of this area as well. What kind of investment we are going to make and the return expected has not been outlined in terms of the schedule going forward. As I have already mentioned, this is the first and foremost important management challenge for us. We will not only reduce CO2 emissions within the company, but we will work with the customers to reduce emissions further. This will be an effort, both internal and external. In this wider context, best measures will be considered. We have not changed the schedule currently, but in the new organization, we will deal with the environmental issues appropriately, and this could lead to a review of the targets going forward. I don't have the numbers to present to you regarding the specific questions that you have asked today. Question. Mr. Dormer, is he going to lead this effort? Answer. Yes, that is a correct understanding. Thank you. I have also some supplementary information regarding the numbers. We are considering the numbers regarding carbon neutral investment. That is being considered today. In terms of substance, energy saving investments will be made, renewable energies will be introduced, and certificate will also be acquired as well. I think the investment there will be several tens of billions per year, and the details will be worked out going forward. I'm sorry to go back, but going back to Ihara's question regarding the Lumada Alliance Program. The number of partners was asked. Currently, we have 24 companies with which we have a partner program, and within one year, we want to increase that to 100. That is all. Thank you. Thank you very much. Next. Next, please. Please unmute and ask your question. Question. Yes, we can hear you. Thank you. This is related to the earlier question. IT and Lumada is very strong, you said. Since the outbreak of COVID, it's been a year. Are you seeing some changes on the demand side? Any concrete products or solutions you're seeing COVID impact on? If you look back on one year, in Japan, the environmental awareness is changing, I think. Do you see any new solution opportunities or you see a trend, the change in the current? That's my first question. Thank you. Answer. The first IT related part, new solutions are now emerging and we are dealing with, for example, the work from home. How to do the attendance management, the working hour management of the work from home staffs. Remote work, those who are in the field site, the construction progress and the attendance ratio, this information can be shared remotely. Now IT is utilized with work from home, security becomes an issue. The certification authentication is done remotely. These COVID related new applications are emerging, we are launching them one after another. ATO, instead of touching the hand, there's a touchless panel being introduced. Next on the environmental side, as mentioned earlier the solutions are, for example, Lumada, there are more than 1,000 use cases. We have more than 1,000 applications. CO2 monitoring application is one of them. Those will be deployed more broadly going forward. Thank you. Kato would like to add some information on Lumada. Page five, we mentioned that the three quarter cumulative Lumada is a growth of 3%. First quarter was -2%, but third quarter alone grew by 12%. This was a big growth, of which IT segment was a big growth driver. We think we are enjoying a tailwind here. Thank you very much. Question. The record high net income, you said on page 17, Hitachi Chemical, is it because of Hitachi Chemical deconsolidation or are there any other factors you are enjoying this record high net income this year? As I explained in the material, the two large asset divestiture, the chemical, Hitachi Chemical, and the [Machinery and Metal], those two contributed. That's more than JPY 200 billion in net income. Thank you. Thank you very much. I'm sorry, this is not to do with the financial results, Hitachi Metals announced the other day, in 2018, in Hitachi Chemical, the group-wide inspection took place, I believe. The inspection of the system, this practice continued, you could not find it. What is your view on this fact? This problem with Hitachi Metals is very unfortunate, and we regret and feel very sorry about this. Now, Hitachi Metals is a listed company, and they are run independently. Under President Nishiyama, the new structure, we are confident that this will go back to normal. This is the third party, independent party's investigation report that was released last week, and so we will deal with the customers and the regulatory authority. Under President Nishiyama, we expect things will go back to normal. We are very regret. We regret this, and we are very sorry. Question. On the other hand, in the mass media, it says that the divestiture preparation is underway. Is there any information you can share with us at this point? Answer. There's nothing we can share with you at this point. Hitachi Metals i s now exploring various opportunities. At the right timing, Hitachi Metals will come up with a proposal, and we will scrutinize and look at this proposal very deeply. There is nothing that has been decided at this point. Thank you. We have many hands up, but in the interest of time, the next question will be the last one. [Senbongi], please. Please unmute and ask your question. Question. I hope you can hear me. Yes. Hitachi ABB Power Grids is what I would like to ask a question about. The profit target 2024, EBIT ratio of 12% is the target by 2024. What is the possibility of being able to achieve this target? The order backlog is around JPY 1 trillion. What has happened after six months? Do you think that profit targets can be met? Are there negative assets? Did you find any negative assets? What is the near-term forecast with the impact of COVID? What are the positive and negative? Are you being able to receive orders successfully? Please elaborate further. Answer. Let me talk about the overall situation, and Kato will discuss the specific numbers. So far, the numbers target remains intact, and we will continue to achieve this target. Actually, regarding this business, it has four segments, basically. The first is the transformer business, the substation business. Second is the High-V oltage DC for gas. Third is the integration in designing the overall system. What we want to grow is the area of automation and utilizing Lumada. However, this is only accounting for 10%. We hope to grow this business significantly going forward. Now, there are green shoots. The management could become more automatically on the cloud. This is the general flow in society, and we would like to leverage this to grow the business. We have a bias on weight, a significant transformer, and the grid automation company will be where it will be transferred. Let me ask Kato to give you the numbers. Regarding the backlog, on page three, it says $12 billion. That is increase of 5%. We have four divisions. They are all showing growth. The HVDC as well as transformers are also included. That's all. Question. It seems that there is no negative factors. Is that a correct understanding? Answer. We have not received any report about the negative factors. Your understanding is correct. Thank you. I'm sorry that we were not able to have everyone ask their questions. The time has come to bring this meeting to close. We would now like to close the web conference on the Q3 fiscal year 2020 earnings for the media. Thank you very much for your attendance.