Ladies and gentlemen, thank you very much for your participation in Hitachi Investor Day today. Today, first, I, Kojima, will deliver an overall presentation, followed by three Executive Vice Presidents' presentations on their respective areas of responsibility, namely green, connective, and digital. A CFO session, where management metrics and numbers will be discussed by CFO Kawamura. Lastly, there will be a Q&A session for all the speakers participating. I hope you will bear with us until the very end of the program. As Hitachi shifts its management mode from one focused on structural reform, which continued for a decade, to a sustainable growth mode, I believe that there are four important points if we are to achieve growth. First, our governance needs to evolve and progress. Second, to continuously strengthen our business portfolio. Third, to innovate technologies and business models continuously. Fourth, to make continuous and unstinting efforts to enhance Hitachi's corporate value. I am making remarks as CEO, these are CEO remarks, so I will address each of the points in this order and share my thoughts with you. First, on evolving governance. We are proud of having global top-tier talents on our board. In fact, strong members of our board, together with a transparent and effective governance structure, has played a major role in pushing for Hitachi's structural reform. It is essential that we maintain and develop the capabilities of our board as we shift to a growth mode going forward. Hitachi gained many excellent global talents through the acquisitions of ABB's power grid business and GlobalLogic. To get the best out of these talents, diversity, equity, and inclusion are quite critical, thus, we are focusing very much on DEI. Having growth-oriented mindset and transforming culture are also very important, and we are therefore introducing and implementing compensation structures to support this as well. Strengthening our business portfolio is crucial to accelerate growth, so it is what we will continue to work on. My basic thinking on business segmentation is to match the segments with the technology trends that are driving the market to grow, so that abundant growth can be captured. I will provide further details on this later. We'll also look to maximize synergies by integrating the global assets gained through M&A, while engaging in bolt-on type of investments continuously to further bolster each of these acquired assets to make Hitachi even stronger. On top of that, we will regularly restructure low profit-making assets to increase the efficiencies of our investment for growth. This slide shows the thinking behind Hitachi's three business segments as to how they are segmented. The three major trends of green, digital, and connective are the areas where huge amounts of funds are flowing in on a global basis that will bring about substantial growth opportunities for Hitachi. Our basic concept is to group Hitachi's assets so that they match each of these trends with the highest affinity in terms of forming our business segments. Specifically, the business segments are, first, the Green Energy & Mobility Sector, a group where green energy and mobility assets are grouped. Second, Digital Systems and Services Sector, which is for digital systems and services. Lastly, the Connected Industries sector for the Connected Industries. These are our business segments that we have formed. Not only will these segments be able to generate synergies within themselves because they are aligned with the matching, the trends, and the growth drivers, these three segments of green, digital, and Connected are closely interconnected with each other, so we can expect cross-sectoral synergies to be created as well. The assets we have acquired through M&A were gained for the purpose of strengthening the capabilities of each sector to be able to ride the waves of these trends. Next, on innovative technologies and business models, and how to build a strength in a social innovation business that only Hitachi can offer, which is the theme I am pursuing. Let me talk from that perspective. In terms of innovation of technologies and business models, the main business concept for Hitachi's social innovation business is to co-create with our customers. By combining Hitachi's broad range of IT, OT, and products, we create solutions that are more attractive than our peers. For that, Lumada's framework for customer co-creation and the mechanisms to underpin that become quite important. To be ahead of others, we must understand customers' challenges faster and earlier. For this, we leverage our corporate R&D functions, based on a backcasting approach and our investments into startups, so that we can prepare for the next Lumada solutions to come. Allow me to explain this one by one. Under Lumada's customer co-creation framework, as I have explained several times, we start from challenges faced by our customers. We build solutions for them, leveraging our IT, OT, and products. From each of Hitachi's business sectors, we cover, deploy, operate, and maintain these solutions. This cycle is implemented using data and technologies. The solutions gained are reused and recycled. This is a schematic diagram. EVPs responsible for each of the sectors will provide the details, including customer case examples and how this framework actually works later. For Hitachi to establish a competitive edge with Lumada's business framework, it is imperative that Hitachi's multiple business units involved with these IT, OT, and products to collaborate smoothly with each other. In other words, they need to move as One Hitachi. To demonstrate the best of One Hitachi's customer co-creation capabilities, we have set up strategic functions that can be applied across different sectors, such as global marketing and sales, which manages co-creation accounts, Hitachi Digital, which develops common solutions for Lumada. We incorporate to support internal and customer efforts for decarbonization and corporate R&D to develop enabling technologies, amongst others. Concrete customer co-creation initiatives begin from the regions, so the leader of the region, as representative of One Hitachi, needs to demonstrate a strong presence in that particular region. The common functions that support the business sectors are indispensable for the success of Hitachi's co-creation with our customers. We are assigning very strong, diverse, and well-experienced business leaders for this. As I mentioned earlier, another way for Hitachi to differentiate is to understand and address customer challenges faster than others. One way to do this is to utilize our corporate R&D function based on a backcasting approach. How will society change next? What kind of co-creation with customers is possible there? What business is our customer going to target, in which kind of market, and which Lumada solution should Hitachi be offering for that? We backcast from these questions based on scenarios to develop technologies together with advanced research institutes with whom we have partnered. Another activity, which is important to capture customer challenges, is Hitachi Ventures' investments into startups. The purpose of this is to search for, invest in, and to collaborate with startup companies, and by so doing, improve our sensitivity towards advanced technology and new business models, so that they can be used for generating the next Lumada solution. Experiencing hands-on the entrepreneurial spirit, powerful motivation for growth, and a sense of speed required from these ventures, is very effective in inspiring a growth mindset among the younger generation of excellent talents that we have. Since this endeavor began in 2019, a total of $300 billion has been invested in startups, and 71 collaborations with different sectors born. The focus of fund three set up in this past April, is to invest in digital areas, including Web3 and generative AI. Last but not least, on increasing our corporate value. Hitachi, in our MMP 2021, declared that we will increase our corporate value by creating economic, environmental, and social value in our social innovation business. Under MMP 2024, following this, we are aiming to raise the ratio of Lumada business as part of our efforts to create economic value, and by so doing, grow Hitachi's EPS and CFPS. In creating environmental value, to help reduce CO2 emissions by 100 million tons per year, mainly from the Green Energy & Mobility Sector. To build social value, we will contribute to planetary boundary and well-being under our slogan of powering good for business activities. These are the aims we will strive to achieve. This slide is the same as the one I used to explain the progress of MMP 2024 that was included in the earnings briefing the other day. To grow top line by capturing the tailwind of GX, DX, to raise profitability by expanding the ratio of Lumada business, stabilizing the bottom line and strengthening cash-generating capability. This chain of KPIs is to be translated into growing EPS and CFPS, this is what I have in mind, in a nutshell, to increase economic value under MMP 2024. The slide shows it concisely, I am using this slide once again, this will be explained further, again, in CFO Kawamura's session later. As I described, we will develop governance further, continue with our efforts to strengthen our business portfolio, innovate our technologies and business models, which we believe will enable us to establish a competitive edge and achieve increased corporate value. By implementing this cycle, we will achieve sustainable growth of our social innovation business. Stay tuned for Hitachi's future. Now that we have entered a sustainable growth mode, much more is to be had going forward. In today's Hitachi Ambassador Day, we structured the program so that the audience will be able to see how One Hitachi works to achieve sustainable growth. During the Q&A session toward the end, I and the four EVPs will take part to respond to your questions. I hope you will feel Hitachi as one or One Hitachi more so than ever in the following presentations. That concludes my presentation. Next is EVP Tokunaga's presentation on Hitachi's digital strategy. Thank you very much for your attention. Good afternoon, and good day to all of you. My name is Tokunaga. Thank you very much for your time today. Today, I would like to explain Hitachi's digital strategy. To begin with, I will introduce the vision of the DSS sector, which is Hitachi's core digital business entity. The DSS sector will provide digital value by combining the strengths of its three business groups: from business, IT services, and services and platforms. We will collaborate with Green Energy and Mobility, and the Connected Industries sectors, to provide unique solutions to the management and social issues faced by our customers, thereby contributing to the realization of a sustainable society. This summarizes what I would like to tell you today in three parts. The first is the continuous growth of GlobalLogic, the growth engine of digital business. Second, to expand synergies of One Hitachi, utilizing Hitachi Digital as a hub. Third is to increase the profitability of core business by shifting to the service business model and utilizing digital technologies. By executing these key digital strategies, we will drive the growth of Lumada business throughout Hitachi. Let me begin by explaining the digital strategy in the Midterm Management Plan 2024. Under the Midterm Management Plan 2024, DSS sector is working to improve the profitability of the Hitachi group by growing the Lumada business and making our core businesses highly profitable. First of all, let me touch upon the growth of Lumada business. This slide shows the growth model of the Lumada business, which uses two models to grow. First, digital-centric, in which the DSS sector directly solves customers' issues, and One Hitachi model, in which DSS, together with GEM, and CI sectors, solve customers' issues. These are the two wheels of a vehicle, so to speak. This slide shows the size and the growth potential of the markets targeted by the Lumada business. We focus upon domains where Hitachi can maximize its IT, OT, and product advantages. Here, you see six focus domains, from energy through manufacturing, on this slide. These are where we apply the two models I mentioned earlier, which is, a digital-centric and One Hitachi model. Now, I will explain the growth strategy with digital-centric model and One Hitachi model, respectively, by showing specific customer use cases. First of all, digital-centric model. Under the digital-centric model, the digital capabilities of the DSS sectors, business units, and the group companies are combined. Starting from digital engineering, as we will provide end-to-end services from digital engineering to system integration and managed services, with the aim of solving issues faced by customers and society. We will provide value that contributes to the growth of our customers' business, not only by reducing costs and improving efficiency, but also by transforming their business models and improving the customer experience for their customers. The most important point of the digital-centric growth strategy is the sustainable growth of GlobalLogic, which is a starting point for providing value to the customers. As shown on this graph, GlobalLogic has maintained high growth and profitability. This is because we have been strengthening digital talents by leveraging GlobalLogic's proven methodology, and expand our footprint through a combination of both own tech, acquisitions, similar to those we acquired last year, with Fortech in Romania and Hexacta in Latin America. We will also expand our geographic and the business areas on the strengths of our skills and knowledge to improve the customer experience of our customers' businesses and the products. For example, in Japan, we established GlobalLogic Japan in April last year, and are expanding co-creation with our customers using Lumada Innovation Hub Tokyo, which is the venue for today's event. In the last fiscal year, as many as 15,000 customers visited LIHT, or Lumada Innovation Hub Tokyo, and 75 co-creation cases were carried out. Another important measure in digital-centric's growth strategy is the enhancement of cloud-managed services. As customers continue to shift their business systems to cloud, they face important challenges to enhance the efficiency of cloud system operation. We opened Hitachi Application Reliability Centers, or HARC, in Hyderabad, India, in June, and also in Dallas in September last year, to provide highly reliable and efficient cloud-based managed services. In its first year of operation, HARC has already been used by more than 20 major global companies, and is scheduled to open another center in Tokyo this month. With the global expansion of cloud-managed services, we will expand the Lumada business by providing one-stop services from design to implementation and operation of customers' cloud systems. Now, I will introduce the actual customer cases of digital-centric model. This is an example of enhancing the customer experience through the design of the self-ordering system. From a user's point of view, for McDonald's, the world's largest food chain, this is a large-scale project to offer a new ordering experience to 68 million users worldwide. GlobalLogic's strategic design department method thoroughly investigated customer behavior from needs realization, order placement, pickup, and final consumption, to realize a personalized and optimized ordering experience for each individual consumer. Next is a case showing how we helped realize the business model transformation of the world-leading multinational company producing and selling tools. GlobalLogic acted as the client's strategic DX partner and transformed the client's revenue model from a product sales focus to a subscription model. In addition, GlobalLogic's chip-to-cloud capability enabled the development of software that connects equipment to the cloud and contributed to the creation of new revenue streams for the customer's business, such as a tool management service that utilizes the collected data. Next is a case of co-creation with Stellantis, a global automotive company. Stellantis and GlobalLogic jointly established a dedicated facility to develop a software platform for SDV, or Software-Defined Vehicle. More than 100 digital engineers from GlobalLogic were dispatched to this facility. GlobalLogic's domain knowledge in the automotive field, cultivated through its support of many automakers, is combined with digital technology to support the realization of next-generation SDV with Stellantis. Finally, this is the case of co-creation with Raiffeisen Bank International, a major European financial institution, which is undergoing a large-scale modernization project. HARK has been selected for this project to facilitate the migration of their business applications to the cloud. They have already migrated more than 100 applications, and plans to migrate more than 300 more over the next two years. HARK will contribute to our customers' modernization by shortening application delivery cycles and reducing operational costs through the automation of cloud operations. I will introduce the comment received from the customer, Raiffeisen Bank, so please take a look at the video. Hitachi Vantara came with deep domain knowledge, strong expertise in cloud, application, and data, as well as presence in multiple countries where RPI conducts business. The engineering-led approach, integrated design, build, and application management, is now core to RPI's cloud transformation. Leveraging Hitachi Application Reliability Center and integrated engineering-led operations approach, RPI has successfully modernized critical banking applications to the cloud and has enabled cost optimization, new customer experiences, and our competitiveness. Our partnership demonstrates the power of expertise and innovation. Next, I will explain our growth strategy through One Hitachi approach. Under the One Hitachi model, we aim to solve issues faced by customers and society by combining the OT and products of GEM and the CI sectors, with the digital capabilities of the DSS sector. Through GlobalLogic's digital engineering, we will add value to the products of the GEM and CI sectors, and strengthen the market competitiveness of the products. The growth of the Lumada business under One Hitachi will be driven globally by Hitachi Digital, which was established in April last year. Hitachi Digital serves as a hub, combining global footprints of Hitachi Energy and Hitachi Rail with DSS sector's global business assets to provide value to the customers. More specifically, Hitachi Digital has established a decision and advisory board with participation from leaders of all sectors, and is promoting the formulation and execution of Lumada business strategies under the One Hitachi concept. To further accelerate this effort, GlobalLogic, Hitachi Vantara, and the group companies in the DSS sector will be integrated under the leadership of Hitachi Digital, to continue strengthening global service delivery. The key to expanding Lumada business in One Hitachi is the utilization of digital capabilities in OT field. GlobalLogic has a proven co-creation scheme called Lab Model. A lab is set up at the customer's site, and dedicated digital engineers are assigned to accurately understand the customer's management issues and quickly solve them. The Lab Model is a collaborative creation scheme that has been used by more than 100 customers over the past 15 years. By expanding this scheme to GEM and CI sectors, we will strengthen our digital strategy in the OT sector, and provide One Hitachi value to our customers. Already, about 500 GlobalLogic engineers are working together with Hitachi Energy and Hitachi Rail and other companies, and we plan to expand this number to over 1,000 engineers by fiscal 2024, with further deployment of the Lab Model. To offer the value of One Hitachi globally, we are also strengthening our service delivery infrastructure through alliance with the external partners. As customers shift their business systems to cloud, there is a growing need for a hybrid cloud that combines the high reliability of on-premise systems with the flexibility of a public cloud. Hitachi has been providing the hybrid cloud solution, called EverFlex from Hitachi, since October 2021, and many customers have already used it. Hitachi will further strengthen this solution through alliances with partners such as Equinix and AWS, accelerate global expansion to enhance the delivery of the Lumada business as One Hitachi. Now, I will show you some specific examples and cases of One Hitachi. This slide shows a collaborative co-creation with a major U.S. energy company, for which GlobalLogic helped develop a grand design for a company-wide DX. We supported the development and execution of a DX strategy that spans the entire energy value chain, from operational optimization of power generation, transmission, and distribution, to UX improvement of the services for users. Going forward, Hitachi Energy's domain knowledge and global footprint in the energy field will be combined with GlobalLogic's design and digital engineering capabilities to scale the results of this project to other regions and businesses. Next is the case of a Hitachi's large-scale rolling stock manufacturing plant in Maryland, U.S., for Washington Metro by One Hitachi. This plant aims to be a people and environment-conscious, state-of-the-art digital factory, and is working to achieve a sustainable manufacturing environment by applying cutting-edge digital technologies such as AI and IoT throughout the entire value chain. We will use the result of this One Hitachi initiative as a showcase to expand our business to customers in the global manufacturing industry. Lastly, here is a case of co-creation with Sekisui Chemical. Lumada has a track record in providing solutions that support material development and R&D, including materials informatics, to more than 50 companies and more than 100 projects. With Sekisui Chemical, we are working on laboratory automation to speed up materials development by automating the experimental environment, utilizing Hitachi High-Tech's expertise as a measurement device manufacturer and GlobalLogic's digital engineering capabilities. We aim to shorten R&D time by seamlessly linking the experimental and measurement equipment used in materials development with the analysis environment, to automate everything from data collection to analysis. Please watch the video message from Sekisui Chemical. Next, I will explain how to improve profitability of our core businesses. In the core businesses that form the business foundation of the DSS sector, such as mission-critical system development and operational services and product business, we will continue to generate stable revenue and profit by capturing customers' needs for system upgrades and modernization, by leveraging our solid customer base and technical capabilities to handle large-scale and highly complex projects. In the DSS sector, we have worked to improve profitability in our core business areas through our two Mid-term Management Plans for 2018 and 2021. In the Mid-term Management Plan 2024, we will further improve profitability in our core businesses by capturing shifting trends towards services and the advances in digital technology. Specifically, in addition to aggressively shifting to a service-oriented recurring revenue model, we will strengthen the application of digital technologies such as low-code, no-code, and AI in the system development process to further improve profitability. An area that we will put particular focus on is the use of generative AI. Last month, we announced the establishment of the Generative AI Center, a new organization to promote the use of generative AI. Since the announcement, we have received many inquiries from a large number of customers. This center will play a central role in promoting labor savings and automation in all Hitachi operations. It will also support the safe and secure use of AI in customer operations. We will promote rapid solutions to customers' business challenges by leveraging the strengths of Hitachi's unique large-scale language models that have learned from OT domain knowledge Hitachi has cultivated. Today's summary. DSS sector, as Hitachi's core digital entity, will implement the digital strategy I explained today and drive the growth of Hitachi's Lumada business. This concludes my presentation. Thank you very much for your kind attention. To explain the green strategy, I would like to hand my microphone to Mr. Dormer. Mr. Dormer, over to you. Thank you, Tokunaga-san. Good day to everybody. Apologies that I cannot be with you all in person today. Technology is a great enabler for global companies to stay connected. Firstly, let me introduce myself. My name is Alistair Dormer, and I'm Executive Vice President for the Green Energy and Mobility Sector. I moved back to Europe from Japan in 2022, where much of the new policies around green are being developed. The transition to green is perhaps the biggest change to society since the Industrial Revolution. Over the next 20 minutes, I will discuss how Hitachi is facing this enormous opportunity. Please turn to Page one. In my presentation, I will talk about the huge market potential for Hitachi from a rapid increase in green market opportunities, why Hitachi's portfolio is so well positioned to contribute, the progress we are making in our key businesses, and finally, a short video showing a few case studies to demonstrate our success. Please turn to Page two. The green transition remains a critical global challenge, driving the transition to clean energy and the decarbonization of mobility and industry. This is being fueled by the enormous investments committed by both public and private sectors around the globe, such as the Inflation Reduction Act in the U.S. or REPowerEU funds in Europe, to name but two. We group these opportunities into three pillars: high growth areas, critical infrastructures, and emerging opportunities, each linked to our solutions in the darker green boxes. On the right-hand side of the slide, you can see the strong growing trend of our order intake in both power grids and rail. New orders were received at record levels in power grids in FY 2022, and early indications are that FY 2023 will be strong. Please turn to Page three. The world will not solve the climate change crisis without new technology. This is why Hitachi is committing our best minds to develop new technologies that will drive the transition for future opportunities. This investment is more than JPY 0.8 trillion in research and development during our current Mid-term Management Plan, and a large portion of this investment is focused around our green business. In other words, green energy, green mobility, and the digital enablers. Please turn to P age four. Now, by example, in the next few years, we see a big opportunity in the electrification of mobility. Electric vehicles are not only a more green means of transport, but in the future will rapidly become a catalyst for carrying and storing energy as the factory on wheels. This could contribute to the stabilization of the grid with increasing renewables, further supported by second-life battery energy storage and energy management systems to expand the EV ecosystem to energy and industry. This is a great example of where the worlds of mobility, energy, and digital combine and where Hitachi has unique insight. Please turn to Page five. I've worked for Hitachi for over 20 years, and in recent years, the rate of change has accelerated like never before. This is evident by the systematic transformation of Hitachi's portfolio. As mentioned in Kojima San's presentation, we have made major investments in green, starting with the acquisition of the Ansaldo companies, and followed by the huge investment in the power grids business from ABB, whilst divesting non-core businesses and businesses with a less promising market outlook. The acquisition of GlobalLogic further accelerates our green strategy, materializing our DX times GX approach through embedded digital technologies. I will talk about Rail's proposed Thales GTS acquisition in later slides. Let's move on to the green transition. Please turn to Page seven. Energy, mobility, and digital were traditionally three different pillars, each having its own world. Our vision is to connect these dots and create a green ecosystem where different elements in the society, such as transportation, power, industry, and local communities, are linked with green energy, green mobility, enabled by digital technology. We believe that Hitachi is perfectly placed to help deliver this transition to a cleaner, brighter future, and I will explain why in the coming slides. Please turn to Page eight. Turning first to energy, the transition to clean energy requires massive investments in renewables, which all need connecting to the grid. As you can see from the slide, the great enabler is digital. From designing new systems with digital twins to sophisticated energy management systems, connected products, all supported by digitally optimized service. Of course, the Lumada technology employed to predict maintenance and reduce cost is the same core platform used to predict maintenance for railways and elevators with shared learning. This is GX supported by DX in action. Please turn to Page nine. Recently, Hitachi brought forward the acquisition of the remaining 20% of the ABB Power Grids business in order to accelerate integration into Hitachi and to invest further for capacity expansion. We have invested heavily to modernize the business over the last few years, which is targeted to be substantially complete by the end of FY 2023. The order backlog has doubled since acquisition, and its quality has improved through a prudent approach to risk and through business model transformation. We now have a very good mix of portfolio, covering both short-term product delivery and longer term service offerings and new styles of framework contracts to further improve margins. Please turn to Page 10. Looking at the broader spectrum of carbon neutrality, we see big potential market for the decarbonization of industry, which we call Carbon neutral as a service business. In other words, providing the capability to help businesses and industries decarbonize using Hitachi's know-how, gained from our own experience and our technology and digital capability. We also see a huge potential market for small modular reactors. To face this market globally, we are in partnership with GE through our joint venture, GE Hitachi Nuclear Energy, who is the top runner in this field. GE Hitachi recently signed a technical collaboration agreement with partners in the United States, Canada, and Poland, and will together invest in the development of a standard design small modular reactor. The target is to develop a cost-effective standard product capable of deployment in multiple jurisdictions to enable more reliable, affordable, and clean energy on the grid. Hitachi Power Solutions joined the Green Energy & Mobility Sector from this fiscal year and already started to build on its strong energy asset service network and capabilities in Japan. We are deploying and managing energy assets and digital technologies as a service to our own factories, with plans to expand this service to our customers. Let's have a look at the mobility transition. Please turn to Page 11. As most of you are aware, Hitachi has historically been strong in what we call the social infrastructure business, and mobility has always been one of the core pieces. We have grown our global rail business, both organically and through the successful integration of Ansaldo a few years ago. We look forward to completing the previously announced acquisition of Thales GTS later this fiscal year to further strengthen our business. As with energy, Lumada plays a key role in our differentiation, from deploying digital twins to prove and test rolling stock architecture, the development of advanced systems integration for advanced driverless systems, through to predictive maintenance platforms. We have been pioneers in the development of green railway technology, and our greener trains include hybrid and battery trains in passenger operation. Finally, we have recently applied our digital capability and knowledge of public transportation to develop three 60 paths. This is a downloadable application of providing ticketless, multimodal travel experience in the city of Genoa in Italy, the first step in smart city architecture. You'll see some of these examples together with the voices of our customers in a short video, which we will play later in my presentation. Please turn to Page 12. After four years as CEO of Rail, Andrew Barr has moved to become president of Hitachi Europe. The next chapter of growth has been entrusted to Giuseppe Marino, a proven leader with a long experience in rail. Giuseppe will oversee the transition of our rail business through the combination of Thales Ground Transportation Systems to strengthen our business in rail control. We've gained approval from most authorities for the acquisition, we are working hard with the remaining two, namely the U.K. and the EU, to conclude an agreement in the coming months. Please turn to Page 13. I won't go into the details of this slide on the green industry transition, as you will hear from Aoki-san in his presentation, I just wanted to show you that the three strategies you're going to hear today, green, digital, and connective, are all aligned and interconnected as One Hitachi. Please turn to Page 14. I talked about Lumada in the context of energy and mobility and the progress we are making from digital twins to connected products to data-led service outcomes. It is a fact that the majority of revenue in energy and rail is hardware related, our digital revenue is increasing, as you can see in the chart. In 2022, GlobalLogic established a digital laboratory in power grids to expand our energy Lumada business. This is a huge opportunity for GlobalLogic to develop new solutions to power grids, but also to access the wide and varied customer base, the green energy and mobility client base. I've mentioned the expansion of rail digital services and 360 PAS in the previous slide. Let me show you some examples of our green successes. Please turn to Page 16. Digital is a great enabler for the green transformation. GlobalLogic is building capability in the energy and mobility domains through its proven methodology of business transformation, acceleration, co-creation, and innovation. Below, you can see both external and internal collaboration examples, where you have just seen Tokunaga-san's presentation, respectively, from our major U.S. energy customer, and a project from a new high-tech rail factory in Maryland, in the United States, which will be building new metro cars for Washington, D.C., from next year. Please turn to Page 17. Now, I'm going to show you a short video to walk you through three examples of our green successes in energy and mobility space enabled by digital. Please play the video. The goal was to achieve a 24/7 service with driverless trains. At the time, it seems very ambitious. Now we realize that this is what actually is engaging people to use the metro and to become addicted to public transport. The system in Copenhagen consists actually of quite small stations, only 50 meters long, and short trains that are only about, 39 meters long. They only have to wait up to 100 seconds between each train. The system, from a sustainable point of view, is actually quite effective. We are optimizing on all processes based on data. Data is never proven wrong. It's not assumptions. We always know what happened and can find the best solution to solve problems. HVDC is high voltage direct current, and it's a digitalized way of transmitting energy. HVDC is essential for making offshore wind work. The heart of the HVDC station is the converter valve. You also have the special purpose transformer for HVDC applications, so you can call it that, the lungs of the HVDC station. Then, of course, you have the HVDC control and protection system, and that is the brain of the HVDC station. It is completely essential. It's enabling the green energy transition. We have to drive aggressively the adoption of renewable sources of power, which means we have to take advantage of the power of digitalization to enable that adoption, to enable visibility, to enable agility and enable reliability. I'm Ryan Mangold. I'm the Group CFO for FirstGroup plc. Our primary focus right now is on electrification and transitioning our 4,500 fleet principally to electric. We've been working with Hitachi as a strategic partner for many, many years, but more specifically when it comes to our bus business. We've been working with them for about two years at our Caledonian depot up in Scotland, in one of the largest, if not the largest, charging hub for any bus electric vehicles in the whole of Europe. Lumada is a digital platform that comes out of the Hitachi ZeroCarbon suite, which connects the telematics of the bus, in other words, knowing exactly what the bus is doing and how the bus is operating, and that then combines with the operational delivery of the battery physically on the bus, delivering service for our customers and giving us the confidence that the bus that is en route would be sufficient to deliver the customer demands that we are serving. We're finding the engagement with Hitachi very innovative, and they're bringing fresh ideas to the table constantly. We've got clear ambitions as FirstGroup in terms of what we're trying to achieve, and Hitachi are a key strategic partner in helping us deliver that. Thank you for your attention, and let me leave you with a few key thoughts. The market is strong. The green light is on. Hitachi is strong in GX and equally strong in DX. We have an appropriate business portfolio, and continue to invest in the technology needed for the future. In particular, we are confident our investments in power grids, rail, and GlobalLogic will see future strong growth in both top and bottom lines. Thank you very much for your attention. I would now like to hand over the floor to Aoki-san for his connective strategy. Than k you, Ollie. Good day. My name is Aoki. I would like to talk about Hitachi's connective strategy. First of all, I would like to show you a video in which I discuss with experts on the topic of the connective strategy. Please, Andy, allow me to show this video. As you just saw in the video, we aim to create new value through connective. We should not be complacent in our traditional product businesses. We shall not fear change. This was my strong feeling when we launched the Connected Industries. Based upon this thought, we made the purpose of Connected Industries, which is connecting data, value, industry, and society. Connected Industries bring together Hitachi's unrivaled products, connects knowledge and data, and generates sustainable value. Solutions that seamlessly link boundaries between management and workplace, one company and another, and the people and the industry, will transform industries and society. These are key topics I'd like to cover today. There are three points. First of all, basic policy for connective strategy. Second, evolution and expansion of Total Seamless Solution, TSS, which has been our big policy since the fiscal 2019. Strengthening of recurring business, thirdly, acceleration of global growth. I will explain based upon this table of contents. First of all, let's take a look at the aim of connective strategy. We set planetary boundary and wellbeing as our target areas to achieve sustainable society. As shown in the area titled Trends in Each Field, challenges related to carbon neutrality and circular economy are getting increasingly more complex. It is getting more difficult to solve those issues by one field of expertise alone, therefore, it is important to transcend the boundaries between the fields. Our basic policy is to bring together our strong products, connect them digitally, so that we can provide Total Seamless Solution to issues that exist between different fields. Next page. This slide shows trends in our focus markets and the growth strategy. We operate globally based on strong industry-leading products. We will expand the business by capturing the growth markets in each of the fields. In industry field, investment in industrial DX and automation is accelerating. The semiconductor market is expected to keep growing in the mid to long term, despite the recent leveling off. In the healthcare field, the market for cutting-edge diagnostic and the treatment equipment is growing solidly. In urban field, the market for elevators and escalators is firm, and the market for smart buildings is expected to expand over the medium to long term. This shows the review of the previous growth strategies. In the growing markets, we have acquired assets for growth through M&A. In the period of Mid-term Management Plan 2018, we conducted structural reforms, such as withdrawing from a low-profit business and acquired Sullair to strengthen North American product business. In the period of MMP 2021, we acquired the JR Automation and made Hitachi High-Tech a wholly-owned subsidiary to lay the foundation of the Total Seamless Solution. Under the Mid-term Management Plan 2024, we have accelerated the development of the Total Seamless Solution through acquisition of Flexware and Telesis in North America by aggressively investing in high-growth focus areas. This shows the basic policy of the connective strategy. We provide a Total Seamless Solution that connects products or DIT to maximize customer value. Based on Lumada's customer co-creation framework, Total Seamless Solution that has been cultivated in the industrial field will evolve and expand into the urban and healthcare fields. Based on the Total Seamless Solution, our recurring business will be strengthened. This strategy that has been developed in the digital field will be also deployed to the green field. This shows the differentiation strategy by Total Seamless Solution. In a social environment that's rapidly becoming more complex, we connect workplaces with management. It will be more important to solve issues through Domain SI, where knowledge is gained through co-creation with customers, and we will do this at all layers. Other players tend to focus on part of the layers, Hitachi connects all the layers between management and the workplace, we promote differentiation by developing and evolving the Total Seamless Solution. Let me talk about the business strategy of connective. These are the three key focus actions in the connective strategy. I will explain one by one. Is the evolution and expansion of Total Seamless Solution, TSS. Boundaries exist vertically between management and workplace, horizontally across the supply chain, also in a place where different industries gather. We will solve issues on the boundaries through collaborative creation with our customers by leveraging our strengths in the product, OT, and IT. Green transformation also requires to solve issues on the boundaries, vertically and horizontally. It will be important to provide a place as well, where different sectors get connected. This slide shows the direction of expansion of Total Seamless Solution with a Lumada framework for co-creation with customers. We will accelerate the expansion of the Total Seamless Solution that we have been providing in the industry field, to a wide range of fields, as well as into the green area. Through these efforts, we plan to increase Lumada sales at a CAGR of 28% towards fiscal 2024. These are the examples of initiatives for evolving Total Seamless Solution from digital perspective, and also from green perspective, and I'd like to explain by showing the following slides. This is the first one, the case of development and expansion of AI demand forecasting solution. Demand forecasting by AI optimizes order placement and reduces out-of-stock products, and it also reduces the loss. It has also reduced the workload in an environment facing labor shortages, so it has brought about many results. We have a wealth of knowledge, a dedicated team, and proprietary technology for planning and optimization, with which we have supported customers such as Seiyu, Workman, Asahi Shokuhin, and Yaoko. We realize the optimization responding to customers' business challenges. We will further expand this to other industries, making it possible to contribute to their green initiatives. Next is a case of the transformation of logistics and delivery operations through AI and digital technology. Combining Hitachi's unique planning optimization technology and the knowledge of logistics operations, we can offer delivery optimization and operation safety management, which lead to operational transformation. This shows the example of delivery sharing between Welcia and Tsuruha. Through such an initiative, we can provide a platform which connects companies to bring about a large success. We would like to continue providing such places, connecting companies to enhance logistics efficiency, thereby contributing to green. The third case is an initiative in the healthcare field to advance customer co-creation based on industry-leading products in diagnostic, therapeutic, and regenerative medicine. All these solutions that have not been connected in the past will be integrated to support customers' operation. We will further develop this into the Total Seamless Solution that spans the entire value chain using IT. By so doing, we will continue to improve patient QOL and reduce the burden of medical costs at the same time. The fourth case is an example of green initiatives. First is the carbon neutrality of the retail supply chain. Hitachi's strength in the control technology and products, and the engineering capabilities that link those technologies have made it possible to achieve carbon neutrality in stores and factories. We are conducting an environmentally friendly store POC for 7-Eleven Japan. We provide portable battery cubes made from reused EV batteries, EMS, and engineering services in one package. This POC confirmed the possibility to reduce CO2 emission by approximately 70% compared to fiscal year 2013 level. EMS is also scheduled to be delivered to the factory of Warabeya Nichiyo Foods Company, a food service company supplying to 7-Eleven. We are aiming to promote the carbon neutrality to the entire retail supply chain through co-creation with customers. The fifth case is the development of a solution to carbon neutrality based upon EVs. Based on our extensive power electronics technologies, we are developing EV chargers with high voltage, high speed, and multi-point switching functions for buildings, shopping malls, condominiums, offices, factories, and logistics centers. We also leverage our extensive product knowledge and diverse customer base to introduce V2X system that enhance building resilience, EV battery LCM solutions that take advantage of our diagnostic and analysis technologies. We will expand our business to the entire EV value chain. Lastly, the sixth case is an initiative to realize hydrogen and ammonia supply chain. We have knowledge and technology cultivated through diverse process experience, with a wealth of global experience in the large-scale compressors. We are expanding and upgrading our compressors for hydrogen and ammonia production, CCS, CCUS as well. We will create solution for the construction of hydrogen supply chains as well, which are expected to become widespread in the future, so that we will take a leadership in realizing carbon neutrality and hydrogen-based society. Next is the growth strategy for the recurring business. We will expand our recurring business by horizontally deploying and utilizing our expertise across the business units within the Connected Industries. We are strengthening the business foundation of Connected Industries by continuously providing value to our customers. Evolving from a product service provider to a deeper solution provider, we aim to expand sales in the recurring business. The following slides illustrate specific examples. This is an example in the urban field. We integrate and strengthen advanced applications by gathering operational data and knowledge based on Japan's top-class products and IoT maintenance services. Through these efforts, we are developing smart building solutions that cover the entire building to promote recurring services. Next case is in the healthcare sector. Starting with an industry leading product, we created LABOSPECT, a platform for sharing laboratory information for optimization with customers and the partners. For the optimization of the lab operation, we are creating a recurring business with advanced solutions, such as equipment, predictive diagnostics, and remote monitoring, and deploying it horizontally across customers and regions. Next, I will explain the development for global growth. This is the regional breakdown of the sales revenue in Europe, Asia, and North America. We will increase the global sales ratio from 47% in fiscal 2021 to 52% in fiscal 2024, with our focus markets as a core. Particularly in North America, we aim to grow at a CAGR of 15% by strengthening focused businesses, including investment, and next slide shows our main initiatives. In the manufacturing industry sector in North America, we will accelerate the development of Total Seamless Solution by strengthening the fusion of product robotics, SI, and digital technologies on the platform established through M&A. Last year, last fiscal year, we acquired Telesis Technologies, a marking system company, to augment product layer, and acquired Flexware Innovation, which has strength in MES SCADA, to strengthen our OT and IT layers. In the semiconductor field, we have created a system to deepen customer collaboration by establishing co-creation bases close to customers globally. We will expand digital co-creation with customers through semiconductor manufacturing and measurement equipment that generate a large volume of data. In the healthcare field, we will focus on the molecular diagnosis business and the development of particle therapy systems, mainly in North America. We will continue to expand our value in this field by digitally connecting diagnosis and treatment. Not many customers give us permission to disclose information in a meeting like this. Nonetheless, we were able to introduce many cases, and this is going to be the last one today. This is a case of a collaborative development of EV battery mass production line in North America. Lion Electric is a major manufacturer of EV school buses in North America. JR Automation, with its advanced robotics SI technology, was the main contractor for this project for Lion Electric, developing prototype and mass production lines for EV batteries in parallel. Through collaborative creation of the two companies, JR Automation has developed a safe, highly efficient, and high-performance production line in a short period of time. We have received a comment from the customer. Please take a look at this video. If you think of a traditional way of making a product, any automotive manufacturer, the first thing they do, they'll develop a prototype. They'll do all the testing, and then they'll go out when they have something done, and they'll contract the manufacturing for the equipment to do so. In this case, we didn't have time for that. We had to get the product right, the process right, the suppliers right at the first try. With such a constraint, the only way you can do that is do it with your supplier that is making the integration, make your prototypes there, so we all learn together and work together on them and hit the timeline. We chose JR Automation 'cause it's a highly regarded machine integrator. Being backed by Hitachi expands the business portfolio, and at the same time, allows you to be supported in new ideas and new developments. This is a summary for today. To reiterate, the Lumada customer co-creation framework leads to evolution and expansion of Total Seamless Solution, strengthening of the recurring business, and acceleration of the global growth. By focusing upon these points, Connected Industries aim to be sustainable value creator that co-creates with customers. Thank you very much for your attention. Now, I would like to hand over to Mr. Kawamura for his CFO session. Kawamura-san, over to you. Uh, Kawa- My name is Kawamura. I'm responsible for finance, accounting, investment, and loans, and risk management. at Hitachi. We have heard from our CEO and the three EVPs for the respective strategies in the three segments. Qualitative information was given. Based on that, I would like to talk about MMP 2024, and toward the last year, what are we going to do? That's what I would like to focus on. Please have a look at Page one of the material. This is what I would like to cover in my presentation. As I said, MMP 2024. In FY2024, what we're going to do, that's the focus of my presentation. In FY 2023 targets, already in April, when we made the earnings announcement for FY 2022, we already covered what we're going to do in FY 2023. My focus today will be on the discussion of what we're going to do in FY 2024. MMP 2024 targets, and because we focus on cash, the source of cash, revenue, how can we maximize the revenue? That's number one. Number two, increasing enterprise value, corporate value, what steps are we going to take? Number three, following the MMP discussions, specifically, what concrete steps to go through to meet the targets for 2024? Please have a look at Page two. These are the financial figures for MMP 2024. Following the divestiture of Hitachi Astemo, what the numbers are going to be for the three business segments, that's what's reflected here. Astemo is not included. In the second half, Hitachi Astemo is going to be deconsolidated, so on this slide, only three business segments are covered from left to right. FY 2021-2024, this is based on compound annual growth rate. Revenue growth of 5%-7% is expected. Adjusted EBITDA, this is the lump of cash flow that we would like to gain, and we're targeting 12% Adjusted EBITDA and ROIC, return on invested capital. Debt and equity, a weighted average times the cost of capital compared to return, and we would like to achieve 10%. If we hit double digit, we can call ourselves a team. EPS growth, so net income divided by the number of shares, EPS growth of 10%-14%, based on CAGR between FY 2021 through 2024. Core cash flow for MMP 2024, this is one of the most important metrics, and in a three-year cumulative, we would like to achieve JPY 1.2 trillion. Shareholder return, specifically, we would like to pay a dividend incrementally in a stable fashion, and share buyback done in an agile fashion. With these two, we would like to make shareholder returns of JPY 0.8 trillion-JPY 0.9 trillion. If you compare the ratio of JPY 0.8 trillion-JPY 0.9 trillion to JPY 1.2 trillion, that's 65%-69%. Please have a look at the next slide. This shows the financial figures by sector. On the far right, in the final year of MMP 2024, what are the numbers going to be? To look at the three sectors total, first of all, there's Digital Systems and Services, then comes Green Energy and Mobility, lastly, Connected Industries. In this order, revenues and Adjusted EBITDA margin is given. Please have a look at the first row. For the three sectors in total, FY 2021 revenue was JPY 6.699 trillion, so Adjusted EBITDA margin was 9.9%. In FY 2022, revenue JPY 7.638 trillion, margin of 9.5%, and this fiscal year's target is already announced. Revenue, plan of JPY 7.84 trillion, margin of 10.2%. In the final year of MMP 2024, in FY 2024, and the baseline is FY 2021, we would like to achieve CAGR of 5%-7%. If 5% is achieved, JPY 7.8 trillion of revenue. If 7%, JPY 8.2 trillion, an Adjusted EBITDA margin of 12%. If you could have a 2023 forecast, Digital Systems and Services, 12.6%, Green Energy & Mobility, 6.7%, Connected Industries, 11.0%. These are the targets. Compared to FY 2024 target, of course, revenue is going to grow, but Adjusted EBITDA margin is to be improved, so 10.2%-12% with three segments in total. DSS, 12.6%-14%. Green Energy and Mobility, from 6.7%-9%. Connected Industries, from 11%-12%. In terms of Adjusted EBITDA margin, in all sectors, improvement is going to be seen. That's our plan. If you could please have a look at Page four. Adjusted EBITA, source of cash flow is discussed. On the far left, FY2022, in the middle, FY 2023, on the far right, FY 2024, the final year of the MMP 2024. In what trajectory are we going to achieve the number planned for FY 2024? That's explained here. Please have a look at FY 2022. This excludes Astemo. It starts with JPY 7.248 trillion. Adjusted EBITA 9.5%. To the right, with a one-off factor, JPY 60 billion minus is planned. Semiconductor procurement and steel plates procurement continues to be very difficult. PMI cost, Hitachi Energy integration is still increasing PMI costs. With the two combined, JPY 60 billion of cost. Lumada expansion, which I will discuss later. With Lumada's expansion and through organic growth, plus JPY 60 billion. Price as well as cost are even more strongly controlled to drive fixed costs down. In line with the inflation, we're asking the customers to pay higher, so price increase reflecting inflation. With that, JPY 107 billion. Forex impact and risks, minus JPY 32 billion. Adjusted EBITDA of JPY 800 billion in FY 2023. Adjusted EBITDA margin of 10.2%, excluding Hitachi Astemo. To the right, further, one-time factors, according to the current plan, what I talked about, semiconductor sourcing environment will slightly improve, we're expecting, and PMI costs will be substantially down. Absence of one-time factors, plus JPY 40 billion, and inorganic growth of JPY 20 billion. We're not thinking of having very large M&As, but opportunistically, we may consider M&A projects. If there's any inorganic growth, we'll take JPY 20 billion, and we'll add JPY 20 billion, Lumada organic growth, JPY 90 billion, and price and cost control, JPY 50 billion. Adjusted EBITDA of JPY 1 trillion in FY 2024, that is planned. Adjusted EBITDA margin of 12%. From JPY 800 billion to JPY 1 trillion. If you add up the pink boxes, that's JPY 200 billion. If you could please go to Page five. Once again, you see the similar numbers here. Vertically, revenues and also Adjusted EBITDA, Adjusted EBITDA margin, as well as net income are shown here. On the right-hand side, you see fiscal 2022 and the targets for the MMP 2024. 2022, the revenue is 7.2, rather 7.6 trillion JPY. Adjusted EBIT, EBITDA of 0.7 trillion JPY, 9.5% margin, and 0.6 trillion JPY for net income. In parentheses, you see 0.3 trillion JPY. As you see in the footnote, in 2022, well, the operating companies and listed companies that were sold, there were some divestiture of the business. There were some, what comes in and out from the accounting, we netted out those factors. When it comes to the, what's it, attributable to the stockholders, it's 0.3 trillion JPY. On the right-hand side, the revenues are JPY 8 trillion, Adjusted EBITDA JPY 1 trillion, and the margin is at 12%, which I mentioned earlier. Net income, JPY 0.6 trillion. Later, I will talk about conversion rate, but the significant no impact of the significant acquisition or the divestiture. You can do is to compare JPY 0.3 trillion for 2022 and JPY 0.6 trillion for 2024. We hope to reduce our loss cost by risk management. I'm also the responsible for risk management of the company. We have been very careful thinking about the risk as we decide on the investment opportunities. The EPS, which is net income divided by Adjusted EBITDA, which is the conversion rate, shall be 50%-60%, and EPS over JPY 600 or higher. These are the targets. Please take a look at Page six. This shows the balance sheet for the MMP 2024. We are discussing on this. On the left-hand side, at the top, you see the current financial position and the balance sheet. Astemo is included here. At JPY 12.5 trillion total assets. On the right-hand side, liabilities, JPY 7.1 trillion, which includes interest-bearing debt of JPY 2.2 trillion. Net assets, JPY 5.3 trillion. Looking at the balance sheet, the ratio by is about the 0.5 times level. Now it's come down to the 0.41, we are controlling this around the 0.5 x. Net debt divided by EBITDA is the multiple of 1x-2 x. Currently, it is 1.6, it fits into this range. Balance sheet is quite strong right now. As I mentioned, if there is an opportunity of acquisition, then we can flexibly use the leverage. to handle such opportunities, that's what we are thinking. On the right-hand side of this slide, you see our core for free cash flow target, JPY 1.2 trillion in the MMP 2024. You see some of the actions, or and the business growth, both organic and inorganic. The business growth is the aimed at cost reduction, and then risk management, or rather, the hurdle rate, internal hurdle rate for the investment project is being raised by the selective decision on the acquisition projects. We are taking a look at the opportunities, and also the receivables and the payables. Working capital is increasing because of the pandemic. We are trying to manage this in the normal and acceptable level by managing the receivables, inventories, and the payables. We are trying to manage the cash conversion cycle, and also capital investment, and the selection and cost reduction, and the enhancement of the cash generation. These are what we are doing. We are trying to strengthen cash generation capability. Conversion rate here refers to cash. Core free cash flow divided by net income shall be between 70%-80%. Core cash flow per share shall be JPY 500 or higher. Currently, it's about 400, JPY 450, as the EPS, and we'd like to raise this up to JPY 500 or more. Please go to the next Page seven. Here, you see some of the actions related to increasing the enterprise value. Currently, this is not in sequence, but at the same time, we are taking these six actions in parallel. The one is top line growth. Today, the Executive Vice Presidents talked about the increase in the growth, Lumada business growth, and also the organic expansion by GX and DX, and also sustainable sustainability, SDGs, social governance, environment. Through these efforts, we have tailwind in these areas, so we need to capture the demand here. Also, DX and GX focus in North America and Europe, bolt-on type acquisition is to be pursued. Bolt-on means not to resort to the large size, the acquisition, and try to divide, or they are trying to manage them. Instead of doing that, the bolt-on type acquisition means much smaller, but they are focused, small size acquisition activities, and this is what we are trying to look for. The next is the profitability increase. Even if the top line increases, it doesn't make sense if profitability is not increased. The Hitachi Energy, for example, and ABB Power Grid business, and GlobalLogic, these were the large assets that we acquired. We are trying to achieve the higher profitability based upon these large-sized assets. Also, we have some low-profit assets on the portfolio, so we need to review them. Also, the labor productivity enhancement, standardization, streamlining, are what we are doing. The bottom line stability is quite important as well. We have done the acquisition of the company, divestiture of the company, so there is a variability when it comes to what comes under the operating profit down to net income. This kind of large changes is expected to be stabilized some more. What we are trying to do is to stabilize the bottom line, to introduce the stringent investment decision, and also minimize loss cost so that we can fully control the conversion rate all the way down to the net income. The strengthening of the cash generation capability, portfolio enhancement, cost optimization, business growth, working capital reduction, and selective capital expenditures, all these are needed to establish the enterprise value. Shareholder returns, I mentioned a little bit earlier, but the cash generated shall be adequately allocated to growth investments and the shareholder return. At least, on the, consider the 50% of the core free cash flow and 50% of the net income, these are what we consider for the total shareholder returns. As I mentioned, dividend, stable dividend payout, and flexible, agile actions related to share buyback. These are the both areas that we are looking at. Also the talents and development, as well as the non-financial value. For example, the CO2 emission and also the human capital development, DEI, diversity, equity, inclusion. We always pay attention to these important aspects as well. Please go to next Page eight, which is the last page. Lumada is a driver of the growth and the revenue growth driver. What is our plan about this Lumada business? Please take a look at the top part. Currently, 15%-20%, that's what we expect from the revenue growth in Lumada business. At the bottom, you see the global DX market growth. There are different views, but generally, it is said that the market is expected to grow at the annual rate of 17%. Our target is within this range. As you see at the bottom, on the left-hand side, back in fiscal 2021, at the top, JPY 6.7 trillion is shown here. This shows the total revenue. We have 2022 and the forecast for 2023 and the Mid-term Management Plan 2024 target. The revenue is JPY 8 trillion, JPY 2.65 trillion is the Lumada portion among the total revenue. The Lumada ratio is shown at the top and 30% of the total revenue by Lumada. Towards the right-hand side, specific years or the numbers are not shown here, but 50% or even beyond 50%, maybe up to 70%-80%, Lumada portion is expected to go up, and the profitability of Lumada business is higher than the other businesses. The entire profitability of the total Hitachi will be higher, with this. This concludes my presentation. Thank you very much for your kind attention. We would like to take a 10-minute break, which will be followed by a Q&A session. Please wait until the Q&A session starts. A 10-minute break. Thank you. We all want to do good for the planet. That's why Hitachi supports all our efforts. Like Mr. Rossi from Italy, who will be able to use ticketless transportation that's both convenient and low in emissions. ... We make it easier for Ms. Cheng from Singapore to invest in green projects through a digital platform that lets her accurately assess environmental impact. I want to support. Together, the choices we make will be a force in changing the future. Through digital and green technologies, Hitachi is committed to creating a sustainable society, one step at a time. Turning your good intentions into good for the Earth. Hitachi Social Innovation is powering good. 新 た な 時 代 が 始 ま っ て い る 。 人 と 人 が 手 を 取 り 合 っ て 進 ん で い く 。 こ の 星 を 守 り 、 幸 せ を 広 げ て い く た め に 。 環 境 に 負 荷 を か け な い 。 互 い を 認 め 合 え る 。 健 や か な 笑 顔 が 続 く 。 サ ス テ ナ ブ ル な 社 会 に 向 か っ て 。 必 要 な の は 、 こ れ ま で の 常 識 を 打 ち 破 り 、 境 界 を 超 え て 知 恵 や ア イ デ ア を つ な ぐ こ と 。 つ な が る が 、 未 来 を 確 か に し て い く 。 そ の 実 現 を 支 え る Lumada Innovation Hub。 お 客 様 、 パ ー ト ナ ー 、 日 立 が 一 体 と な り 、 多 様 な ア イ デ ア を 交 わ し 合 う 。 現 場 の 方 々 が 今 何 に 困 っ て い て 、 え 、 ど う い う こ と を 本 当 は し た い と 思 っ て い る の か っ て い う と こ ろ を 深 く 理 解 す る 。 デ ー タ が 重 要 だ と 思 い ま す 。 そ こ に 何 の 意 味 が あ る か と 、 そ こ に 隠 れ た 意 味 を で す ね 、 見 つ け て で す ね 、 ナ レ ッ ジ だ と か ど ん ど ん 入 れ る こ と に よ っ て 、DX が 加 速 す る こ と が で き ま す 。 お 客 様 の 課 題 解 決 に 向 け て 、 そ れ に 合 わ せ て 人 材 を つ な い で い く ノ ウ ハ ウ や 技 術 を 結 集 し て 、 最 後 ま で 伴 走 い た し ま す 。 日 立 の ス ペ シ ャ リ ス ト が チ ー ム と な り 、 サ ス テ ナ ブ ル な 社 会 の デ ザ イ ン に デ ー タ と テ ク ノ ロ ジ ー で 挑 ん で い く 。 幅 広 い 事 業 領 域 で 培 っ て き た 技 術 と 経 験 を 柔 軟 に 組 み 合 わ せ 、 世 界 中 の パ ー ト ナ ー と 次 々 に 新 た な 価 値 を 生 み 出 し 続 け る 。 お 客 様 の ビ ジ ョ ン を デ ジ タ ル の 力 で 形 に す る Lumada Innovation Hub。 さ あ 、 デ ジ タ ル で 社 会 に イ ノ ベ ー シ ョ ン を 。 こ こ か ら 一 緒 に 。 We all want to do good for the planet. That's why Hitachi supports all our efforts. Like Mr. Rossi from Italy, who will be able to use ticketless transportation that's both convenient and low in emissions. ... We make it easier for Ms. Cheng from Singapore to invest in green projects through a digital platform that lets her accurately assess environmental impact. I want to support. Together, the choices we make will be a force in changing the future. Through digital and green technologies, Hitachi is committed to creating a sustainable society, one step at a time. Turning your good intentions into good for the Earth. Hitachi Social Innovation is powering good. 新 た な 時 代 が 始 ま っ て い る 。 人 と 人 が 手 を 取 り 合 っ て 進 ん で い く 。 こ の 星 を 守 り 、 幸 せ を 広 げ て い く た め に 。 環 境 に 負 荷 を か け な い 。 互 い を 認 め 合 え る 。 健 や か な 笑 顔 が 続 く 。 サ ス テ ナ ブ ル な 社 会 に 向 か っ て 。 必 要 な の は 、 こ れ ま で の 常 識 を 打 ち 破 り 、 境 界 を 超 え て 知 恵 や ア イ デ ア を つ な ぐ こ と 。 つ な が る が 、 未 来 を 確 か に し て い く 。 そ の 実 現 を 支 え る Lumada Innovation Hub。 お 客 様 、 パ ー ト ナ ー 、 日 立 が 一 体 と な り 、 多 様 な ア イ デ ア を 交 わ し 合 う 。 現 場 の 方 々 が 今 何 に 困 っ て い て 、 ど う い う こ と を 本 当 は し た い と 思 っ て い る の か っ て い う と こ ろ を 深 く 理 解 す る 。 デ ー タ が 重 要 だ と 思 い ま す 。 そ こ に 何 の 意 味 が あ る か と 、 そ こ に 隠 れ た 意 味 を で す ね 、 見 つ け て で す ね 、 ナ レ ッ ジ だ と か ど ん ど ん 入 れ る こ と に よ っ て 、DX が 加 速 す る こ と が で き ま す 。 お 客 様 の 課 題 解 決 に 向 け て 、 そ れ に 合 わ せ て 人 材 を つ な い で い く ノ ウ ハ ウ や 技 術 を 結 集 し て 、 最 後 ま で 伴 走 い た し ま す 。 日 立 の ス ペ シ ャ リ ス ト が チ ー ム と な り 、 サ ス テ ナ ブ ル な 社 会 の デ ザ イ ン に デ ー タ と テ ク ノ ロ ジ ー で 挑 ん で い く 。 幅 広 い 事 業 領 域 で 培 っ て き た 技 術 と 経 験 を 柔 軟 に 組 み 合 わ せ - ... We all want to do good for the planet. That's why Hitachi supports all our efforts. Like Mr. Rossi from Italy, who will be able to use ticketless transportation that's both convenient and low in emissions. We make it easier for Ms. Cheng from Singapore to invest in green projects through a digital platform that lets her accurately assess environmental impact. I want to support. Together, the choices we make will be a force in changing the future. Through digital and green technologies, Hitachi is committed to creating a sustainable society, one step at a time. Turning your good intentions into good for the Earth. Hitachi Social Innovation is powering good. Ladies and gentlemen, thank you very much for waiting. At this moment, we would like to have a Q&A session. We will be taking questions from sell-side analysts participating in person and analysts who are participating online. We will be taking questions from both. Those of you participating in person, please raise your hand, and those of you online, please press the Raise Hand button on Zoom's screen. We will call your name. Please ask up to only two questions per time. Please state your name and affiliation before stating your questions. Two questions at a time. Any questions at this moment? Hirakawa-san, please go ahead. My name is Hirakawa from UBS Securities. I have two questions. Question number one, especially in the Connected Industries presentation, digital and green, you talked about One Hitachi, that's what you emphasized, which left a strong impression. I have a question of Ogi-san. I do understand that you're moving as One Hitachi, but in terms of GlobalLogic, in the middle of your presentation, well, GlobalLogic is serving as a consultant, which I understand. What role is being played by GlobalLogic to contribute to the Connected Industries business? What is the potential of GlobalLogic going forward? If you could answer that first. Yes, please respond to the first question. Thank you very much, Hirakawa-san, for a very good question. Today, well, synergy creation with GlobalLogic, I did not touch upon that aspect very much in my presentation. First of all, industries. From a connective industry point of view, GlobalLogic has the strengths in the customer relations and also business model creation. These are where GlobalLogic is very strong from our point of view. Today, I mainly focus upon total seamless solution, which is from IT in the manufacturing area to the actual field of the manufacturing. That was my focus point in my presentation. Looking at the total picture, total picture of the connective, we would like to take advantage of the strengths of GlobalLogic. To be more specific, our service model and also customer experience, how to create the customer experience or the actual consulting, the capabilities, and the company has a method to do so, and we are deepening this. When it is formulated into the specific actions, we would like to introduce that to you. That is the reason why it was not a part of my presentation. For the GlobalLogic Japan current status, that can be also explained by Mr. Tokunaga-san. The both in Japan domestic and the overseas, there are some cases emerging. On a global basis, earlier, I mentioned a little bit on this point, but the Hitachi High-Tech equipment, we can collect the data from the equipment to realize the enhancement of the manufacturing industry. These cases are emerging right now. I introduce the Sekisui Chemical case, but the GlobalLogic has the chip-to-cloud capability, which is strong. The product coming from a collected, the Connected Industries, we can get data, analyze them, and turn it into the value. This cycle has started to work and started to operate. Domestically, in Japan, Nojima is another case I can introduce. Already, the store renovation and transformation. To enhance the customer experience, that has already been achieved. I cannot give you details, but already more than 30 cases, we already received orders for the 30, more than 30 projects, including connective and others. GlobalLogic Japan is also building up its own portfolio of businesses. Another question to Mr. Dormer. I hope I can ask in Japanese. This is a question regarding power grid. Power grid order intake in 2021 and 2022, it was very strong. Why up 70%? According to your presentation, so far, you've been receiving a good number of orders in FY 2023 as well. Over the medium to long term, the power grid business revenue growth, what will the level be going forward vis-a-vis CapEx as well? That's my second question about the power grid. What will the revenue levels be going forward and CapEx as well? Thank you very much for a very good question. Firstly, let me say that in FY 2022, it was an exceptional year for order intake. Our forecast for FY 20 23 excluded a number of large projects with strong prospects. This was because we were unsure about the timing. If we look back to 2021 and 2022, our 2023 estimate, you know, is on the right trajectory and is strong. In terms of the medium to long-term prospects, I still believe they're very, very strong. At the moment, we have a very strong tailwind in terms of the investments that is made to transition the power sector from fossil fuels over to renewables. We do have some challenges, such as the global economic situation, inflation, and the war in Ukraine, which is impacting on global business. Overall, I would expect the revenue growth for the power grids business to be more than what it's been traditionally for the coming years. We already have a very, very strong backlog which we need to deliver. Obviously, with the power grids business, the execution of that backlog quite often takes several years, so we've been building up much higher quality backlog with a very prudent approach to risk. We have reduced some of the risk elements, such as EPC, into our backlog. Both the quality of the backlog, the market conditions remain strong, should show into good revenue forecast for the future and improving profitability. Thank you. Just to add to that, for this fiscal year, revenue is going to be quite strong, perhaps more so than assumed, and next year as well. Raising productivity and making capital expenditure, that is what is required to support that. This year, based on that, we are making allocations for CapEx. Thank you very much. Any other questions from the floor? Yes, Izawa-san from the floor at the venue, please. Thank you very much. My name is Izawa from Citigroup Securities. First question is about the generative AI, which was mentioned earlier, so I'd like you to give me more detailed explanation. Another question is to Kawamura-san about the numbers. First point, generative AI. Hitachi's unique AI is the competitive things. That's what you mentioned. Microsoft and ChatGPT. Well, it is not that you are going to use their assets, but Hitachi's own AI will be offered to the customer. Is that your business model? Are there any particular area of your strengths? I have an impression that you will focus upon certain strength area. OT domain knowledge is the basis of the capabilities. Could you please give me more detailed explanation? Tokunaga-san, and if possible, Aoki-san as well, I'd like the both of you to ask about the AI to be offered to the customers. What kind of, well, what do you expect from those activities about the generative AI? Yes, Ezawa-san, thank you very much for your question. First of all, I would like to respond to your question. Yes, generative AI, well, probably I gave you an impression that we are going to make unique AI, but our stance is with OpenAI, like ChatGPT and Microsoft partners, AI, are to be utilized to promote our business or to introduce higher efficiency operation within Hitachi. What I mentioned in my presentation is that the there should be some part which is unique to Hitachi. That is the source of the competitive advantage, and OT is to be learned. It should be the large-sized language model learning OT. That is what will contribute to the customer's value. In my presentation, I particularly emphasized that aspect of the generative AI. Looking at the broader picture, well, Generative AI Center establishment announcement in last month, there were so many things that have been happening internally within the company. How to utilize the generative AI internally at Hitachi is one aspect, and also for system development, efficiency enhancement of the core business can also be promoted by using generative AI. It's testing the model, but the 30% or so efficiency enhancement is confirmed to be realized. This is based upon the smaller model, we would like to do this in a much larger model to confirm and verify whether that effectiveness can be achieved. For the customers, the benefit, more than 100 inquiries and the questions are asked on, since the announcement of that center establishment. Customers, they want to create an environment where they can develop their own Generative AI, so they want our help. That's one kind of the aspect and the question. Another question is about they asking us to provide the consulting service to enable AI and introduction by the customer. One by one, we'd like to respond to those requests, and we would also like to build up our own experience using generative AI for our own operations, which can be ultimately be led to the business. These are what we are thinking right now. I would also like to make a little the comment in response to the question by Ezawa-san. Generative AI, it is something the to be developed from now on for the future. This is what Tokunaga-san mentioned. The Generative AI Center was established, and also internally, how to let the AI learn our OT and the activities. It's going to be a tool that guide us in our operation as well. In my presentation, I cited the various use cases. Optimization, when optimization was mentioned, it usually comes along with the needs for the AI, what kind of engine is to be used for the analysis. That's going to be an important part of the domain knowledge. The volume, number of the data cases, and also the experience that we have accumulated by using AI engine. There are many cases where actual results were created out of those activities based upon our data and the AI. To summarize, mainly in Lumada, how to use AI at Hitachi? The AI for controlling purpose, for example, the right example is robots. That's one way to use. Also analytical AI, for example, the predictive and the prediction about the failure of the equipment. The data analytics or the, what comes beyond data analytics, that's what we do. Also the recognition, for example, image recognition, and to identify the place where the operation may be dangerous or the risky. That's another area. Mr. Aoki's area, it refers to those particular usages, but they are now, they are beyond that, or beyond the cognitive. Now we have generative AI. They are where generative AI is most effective is to replace the people's and humans' intellectual activities. That is the most promising area for us. In terms of business, system integration, application, digital engineering, under Mr. Tokunaga. These are intellectual, and the activities can be replaced or augmented by AI. Microsoft and other OpenAI, Google, they are the major players, and they use LLM, Large Language Model. We can put our own content to their large language model, so that we can come up with the large language model, which is unique. That's what we are trying to do. It is not that we are going to start from scratch to create the totally different large language model. Partnership is quite important in this field. Thank you. I have another question that I prepared, so allow me to ask another question. If we take a step back, according to Kamura-san's presentation, over the long term, Lumada business will account for 50% of Hitachi's business in one of the slides. It's hard to envision that. Is the definition of Lumada going to change? Should I direct my question to Kamura-san or Tokunaga-san? I don't know. While retaining Lumada's competitiveness and profitability, will you really be able to achieve the 50% ratio of Lumada? Or are you looking to perhaps change the definition of Lumada? Is that assumed? Okay, may I turn to Tokunaga-san for an answer first? First of all, right now, at this moment, Are we talking about the future potential change of the definition of Lumada now? No, that is not the case. To grow the Lumada business right now, that will lead to the growth of Hitachi as a whole. We put trust to that idea, and we are working with that in mind. That's what we are doing right now. The proportion of Lumada in the total business, if that accounts for 50% of the total business, it's quite difficult to imagine that kind of situation. To us, data, technology, we are going to use them so that we can strengthen Hitachi business. Social innovation is what we can offer as the value to the customers. If that is the case, that requires Lumada business, based upon the data and the analytical capability, they will have the greater portion. The business shall grow based upon the further usage of our data. In that sense, ultimately, the majority of the business is expected to enter into so-called Lumada type of business. That's our image. Any additional comments? I would like to talk about the Lumada business from a CI point of view. In our sector, 70%- 80% of our business are product-based business. The Lumada definition, or the most recent, the recent definition of Lumada includes connected products. As Tokunaga, EVP Tokunaga mentioned, to be connected, and we create, generate the data to get the value out of that. That kind of the potential is relevant to all the business lines. In that sense, by using digital to generate the value there, I believe that there is a significant potential. In my presentation, there are several, the high-tech and the products were introduced. The Hitachi High-Tech, the has the measurement equipment, and that, and it results in the creation and collection of a huge data. We manufacture what is requested by the customers, and the ask customers to, they operate them, and they get familiarized with the product, and then the, so that they can operate those equipment. Beyond that, we can have a business model additionally to the, use the data from that, and the product for the further businesses. There are many opportunities like that to generate value from a data. The is applicable to many areas of a product business. I believe that is what I can say about the Lumada. Just to add to that, I'm saying this repeatedly, Lumada is about co-creating with customers. We're going to make full use of OT, IT, and products to create value. That's the starting point. In that regard, as Mr. Aoki said, most of the products are going to be connected going forward. One way or the other, products will be connected and utilizing digitization and AI values, what we created. If that's going to be the case, Lumada business, and of course, opposite, that is a standalone business or a standalone data business. Such portfolio will be put outside of our group, divested, we want a digital that's connected, green that's connected. That's the direction that we're pursuing. What Mr. Kawamura said, Hitachi will continue to focus on Lumada. Lumada will be at the very core of Hitachi. We're comfortable with that. Through business transformation, we would like to shape it in the best possible manner, and if necessary, definition may be changed. We'd like to take another question. Are there any other questions? Mr. Harada, please go ahead. Thank you very much. This is Harada from Goldman Sachs Securities. Thank you very much. I have two questions. First question: in the new MMP 2024, you gave us the specific numbers from each of the three sectors. Compared to what you have announced, green, the revenue is up. As for others, margin is down by about 1%, lower than what you announced earlier. Please explain about these changes. What is happening to each sector? Mr. Kawamura, please go ahead. Harada-san, thank you for your question. If you could please take a look at Page three of my presentation material. On this, the three business segments on the far right, revenue of JPY 7.8 trillion-JPY 8.2 trillion, as I said in my presentation, a CAGR of 5%-7%. If that is the assumption, revenue will be JPY 7.8 trillion-JPY 8.2 trillion. Adjusted EBITDA margin remains unchanged at 12%. I think you're talking about the numbers below. Digital Systems and Services, 14%, before it was 15%. Green Energy and Mobility now says 9%, it used to be 10% before. At the bottom, Connected Industries, now 12%. Uh, according to the original material, I think it was 13%. So why 1 percentage point down, and the overall number's, uh, unchanged? When we put together the plan, originally, we were not able, uh, to have a good grasp of, uh, risk sectors in each of the segments. So we have this overall look, and, uh, now, uh, the remaining, uh, uh, period, uh, until the end of, uh, the current MMP, one and a half years, we now see risks associated with, uh, semiconductor and so forth. And so we have a clear view of the risks, and they're being reflected in the numbers. So, uh, for each, uh, sector, uh, 1 percentage point down, but overall, uh, it remains unchanged. And, uh, about revenue and, uh, margin from each, uh, sector, perhaps we should have a comment from, uh, each EVP. Tokunaga-san, please start. Okay. To achieve the target of DSS, there are two important points that we have to consider. First is, as I mentioned in my presentation, GlobalLogic's growth shall be sustained and continued. The acquisition of the talents is another important point, and also both on type M&A shall also be pursued so that the top line as well as the bottom line shall grow, both of them, and that will be the growth engine of the company. In fiscal 2022, we struggled a little bit and caused you a little concern, I assume, the core business and the profitability enhancement is another important pillar for us. Most recently, core business part, the JPY 10 billion or more, the orders are coming to us to the extent that has never seen in the past, and that led to the very strong order placement and order backlog. Also, the important projects are coming up, and project management shall be conducted properly so that the percentage for both the revenues and the EBITDA or the profit will be raised. That's what we are trying to achieve. Next? Next, Ali. Regarding Green Energy & Mobility, how to grow the top line and bottom line, if you could please comment on that, Ali? Sure. Well, the top line of the Green Energy & Mobility Sector has been really supported by a super strong market tailwinds accelerating green transition and electrification. We've booked some huge orders, especially in terms of HVDC in the power grids area over the last couple of years. Equally, in the rail sector, we've seen the post-COVID recovery, particularly in Europe, so we've seen a strengthening in orders. In terms of top-line growth, our figures have improved in terms of 2024, up to JPY 2.9 trillion from our previous forecasts. In terms of margin improvement, clearly, I mentioned earlier how we've been working on improving the quality of backlog, improving productivity within the business. We have a lot of initiatives that have gone through to improving the business, but also the significant investment that we've made in modernizing the particularly the IT systems of our Power Grids business. Those investments will mostly come to an end by the end of FY 2023. We will see an improvement in FY 2024. Lastly, Aoki-san, please. Yes, in the Connected Industries, last year, target was JPY 3.2 trillion. That was our target, JPY 3.2 trillion. It is not that we gave up achieving this target, JPY 3.2 trillion. Internally, we are still trying to achieve this target. As CFO Kawamura mentioned, there are some global risk factors, particularly the recovery in China, is not on what we expected. It has been slow in achieving that, our expectation. In organic growth in Europe and the U.S. were also included in the target. Towards 2024, looking at the plan towards 2024, it is necessary to look at these numbers from the conservative way. We lowered the target from JPY 3.2 trillion to JPY 3.1 trillion. It is not that we gave up the target of a JPY 3.2 trillion in CAGR. We would like to achieve the 5% or higher than this. Supply chain is still being disrupted. In order to enhance the Adjusted EBITDA in 2023, that's another area of our focus, the idea behind the review of these numbers. Thank you very much. Understood very well. My second question is as follows: I have a question regarding digital. In Tokunaga-san's presentation, what was unique or characteristic was the new phrase that you used, digital-centric. In parallel with the GlobalLogic, cloud-managed service is being offered, which seems to be new. Cloud-managed service, you are opening a center in Tokyo, if you could elaborate on that, provide us with details. In conventional systems integration, you were based on a month, with the replacement with the cloud service, do you think that's going to be the direction? Will that enhance profitability? Will it lead to medium-term profitability, if you could elaborate on that? Thank you very much for your question. Yes, actually, that's exactly a very important point. Well, the growth of GlobalLogic is often emphasized as the... Too much, if we look at the customer situation, on-premise systems, and at the same time, cloud, lift and shift to cloud is also being promoted. The way the shift is conducted to the cloud, is not done by the entire organization of the customers. Well, the IT section as well, and also the other sections. So within the company, also try to use the public cloud for the shift of migration to cloud, so including operation. The customers are spending so much the efforts and making troubles in the shifting to the cloud, they may also face the concern over the security. The all the business issues related to migration to cloud are now emerging and starting to attract attention of the management. It has become the pain point for them, and that makes them come to us, Hitachi, to support them. That is the reason why we opened the HULC. The more than 20 companies, major leading companies, started to use the HULC capability in the first year of operation. That's how the value is recognized from a customer's point of view. From our point of view, as Mr. Harada pointed out, managed service, this is in the form of a managed service. The business model is recurring, and by using this on the, for mid to long term, the perspective, profitability will be higher. Also, they are being used on the long term, and it leads us to understand more about the pain points of customers. That leads to another cycle of business opportunities. We can enter into the virtuous cycle, and so significant contribution to the business is expected from this. This business, along with the growth of digital the logic, this is a GlobalLogic. These two are quite important in growing the business. Understood quite clearly. Thank you very much. This view with questions, please raise your hand. Boral-s an, please, you're participating in person. Please go ahead. My name is Boral from Japanese Securities. Thank you for the presentations. I have two questions. The first question is about utilization of generative AI. As you look to utilize generative AI internally, what quantitative contribution will it make to the performance? For example, systems development, manpower can be reduced, the SS profitability being raised to 20% or over. Do you think that it's premature to try to reflect the upside to MMP? As was mentioned earlier, the margin was reduced, margin forecast was reduced by 1 percentage point. Wouldn't margin go up with the use of generative AI? Am I reading too much into it? Thank you very much for your question. First of all, the utilization of Generative AI, as I mentioned, this is something that we have to promote. In my presentation, if you read my presentation, well, during the period of MMP 2024, well, this is a period where we build up our own experience using Generative AI internally. As I mentioned, as you pointed out, system and development, application to system development, apply application to other businesses, and, yeah, we are trying to enhance the efficiency of our business. The in 30% and the efficiency enhancement for system development, that's already within the visibility. This is a simple usage. The 2024 MMP, we are going to make more cases using Generative AI so that we can understand effective way to utilize Generative AI. We'd like to create a successful story using generative AI. In the next MMP 2027 period, we would like to harvest the efforts of over generative AI. The MMP 2024 period is for us to build up our external expertise using generative AI. Of course, it is not that we are not going to get any commercial benefit out of the generative AI. Specifically, how much upside is expected? Well, right at this moment, we are not able to give any quantifiable and the results, but, yeah, I would like to convey our sense of commitment and willingness. Understood. The second question is about the quantum computing capability of Hitachi. During your R&D announcement, the quantum annealing was announced, and the gate and the approach is something for the future. The other day, shuttling the quantum bit, the methodology was introduced in the release. Is this a new technology? The GPU, and the generative AI is attracting attention. What Hitachi has is the several quantum computing capabilities, and for the development of AI and the GlobalLogic. Is this something that is instrumental in that regard? The investors may not be keen on this, but are there any questions? Any points here? The shuttling method, we made an announcement on that recently. What we target is based on a silicon, unlike the superconducting system, very large number of quantum dots can be created. That's the method. Here in Japan, together with a number of research institutes, we are doing research on that. Why are we working on quantum computing, with what purpose or target? Basically, where quantum computing has the highest affinity with this analysis of natural phenomena. Well, natural phenomena include a physical phenomena or events, most of them that occur in nature, actually, are driven by the quantum world. In order to simulate what's happening in nature, a quantum computing is the best method. I can't give you all the details, but that's how we see it. On the other hand, generative AI conducts humans' intellectual activity, but quantum computing is for natural phenomena. For example, looking for new materials, something physical. Something that cannot be done by conventional computing can be done in terms of simulation by quantum computing, running new kinds of simulations. That's what is possible. Next, we may want to co-create with the materials manufacturers. When that happens, the technology that we can offer for that partnership could be quantum computing based. Not that we're trying to do direct business out of quantum computing. We have no intention of doing that. We're trying to utilize quantum computing to come up with solutions for our business. We don't have a system or technology to handle a large number of quantum dots, and that's why we're looking into this in collaboration with a number of advanced research institutes. If some excellent technology comes out from some organization, we're going to make use of it. We are looking at this from an application point of view. Generative AI and quantum computing, the two are not connected in my mind yet. Generative AI. Well, NVIDIA is a typical example. They offer a different architecture. A different architecture and processor will be required for generative AI. Although not discussed extensively, one of the biggest problems associated with generative AI is the fact that it takes up so much energy because huge data centers are required. Instead of one human labor, if you use the generative AI as a synthetic worker, it is going to consume huge amounts of energy. Energy consumption issue must be resolved. A processor that's very power conservative or power saving, I think NVIDIA is looking into that, and such an architecture could be developed. Processor and semiconductor industry can be activated with such new technology. Understood. Thank you very much. Are there any other questions? From online, Mr. Hiroi-san, please go ahead. Thank you very much. This is Hiroi from Nikkei Newspaper. I have one question. In Kawamura-san's presentation, in Page five, Adjusted EBITDA, JPY 1 trillion, which is the 2024 target, Mid-term Management Plan target. Well, it was JPY 960 billion when you made the announcement in April, so this number is higher. What is the message behind this number? This is a challenging figure, so how to achieve this based upon Lumada strategy, how would you like to achieve this? In the next term, Mid-term Management Plan, how high is it going to be? When Lumada accounts for 50% of the total business, how far you can go? JPY 1 trillion, the meaning, significance of this, the number, and also your idea going beyond this, please go ahead. Hiroi-san, thank you for your question. Not that there's a super focus on coming out with this target, that was not the case. If you could once again look at Page three of my material, we have just performed ordinary calculations that we always do. DSS, on the far right, a CAGR of 7%. If you multiply that, you will get JPY 2.6 trillion, if you multiply that with 14%, then you will get JPY 364 billion, the same goes for GEM. If you multiply 9% to JPY 2.9 trillion, JPY 264 billion, if you do the same, 12% multiplied by JPY 3.1 trillion, then you get JPY 372 billion. If the three are summed, total JPY 997 billion, which is almost JPY 1 trillion, although it's a little short of JPY 1 trillion. That's what we're doing. Not that there's going to be a big gap that we have to fill. If you calculate in a normal way, you will get JPY 1 trillion. Once we achieve JPY 1 trillion, what are we going to do beyond that? Rather than talking about that, we're focusing on how to achieve the targets under MMP 24. A company, its most important mission is to grow as a going concern. We can't afford to stop at JPY 1 trillion. We want to continue growing to JPY 1.1 trillion and beyond by replacing assets, turning over assets, will be any higher. That will be the target for the next MMP to come. With all the measures that we talked about, I'm sure, we will be able to see higher target in view. That's going to be the future direction for our next MMP. Thank you. Thank you very much. Next question, please. We'd like to take next question. Ishino-san at the venue, please go ahead. Thank you very much for giving me this opportunity to ask a question. This may be similar to the previous questions, but the generative AI parameters, often the parameters is the focus of a discussion. In case of NVIDIA, they have three parameters, and using at the or to make something large. In case of Hitachi and Lumada customers, how in terms of the number of parameters for the generative AI, what kind of customers, and what are the customers' preference? When it comes to profitability, if it is a large size, then the AI, generative AI is going to be large, but the profitability may be lower. How to manage this generative AI business, including Lumada, and what can you do in order to raise the profitability of a generative AI? First of all, I'd like to respond. I will first answer, and if there's anything to add, I will turn to Tokunaga-san. My understanding is that LLM, large language model, they use tens of billions order of parameters to come up with an answer. That's my understanding of the LLM. As I said before, are we going to do that from scratch? No, no intention of that on our part. We have texts, we have data that's characteristic to Hitachi, and we would like to merge them into the LLM with the billions of parameters so that we can customize the model. There are providers of base models, so a variety of players will be out there, and unique content will be added by each company to come out with a unique LLM to be provided to the customer. That's my understanding. From our perspective, the question is, how unique a model can we create by merging our own text and data into a general LLM? Of course, it will take a lot of computing power, but compared to doing something from scratch, the cost is not all that prohibitive. In terms of cost effectiveness, I think we'll be able to do this. If I may make some additional comments. As for, I'd like to make a comment about the customers situation. As I mentioned, Generative AI Center was established, and we made announcement. Since then, customers and they came to us to ask questions, and they're looking at the questions, they raised, as, the, Mr. Kojima mentioned. As for Hitachi, it is a unique Hitachi's, the LLM, and they're based upon OT experience. For some customers, for example, customers' customers, they make the inquiries to our customers, and they want to make the high quality response to their questions. They are based upon the customers and the operation and the know-how, they would like to create new LLM, but, yeah, they want, the, our consulting service to help them. That is one example of question. Customers are consulting the environment and create the support to the creation of their environment. By so doing, we will be able to lay foundation for the further expansion about Lumada, so the Lumada. That's what we are doing right now. Thank you very much. Another question, if I may ask you. We are looking at the financial numbers by sector. Well, you disclosed these numbers. In Green Energy & Mobility, profitability seems a little lower than other sectors, EBITDA margin. Yeah, there are the order backlog, in the case of MMP 2024, this is the current status. It's going to be much higher for the MMP 2026, because the Mid-term Management Plan on the Mid-term Management Plan 2024, oh, this is all the, you have a large, the, order backlog. Probably it is something that you can consider for the next period about the Mid-term Management Plan 2026. How much of the profitability is the idea? I have to ask, Ali to answer that. Ali, over to you, please. Okay. Thank you very much for your question. I mean, the profitability of the general sector is slightly lower than the IT or the digital areas. When we compare to the industry averages, we're in a favorable position compared to our competitors. We're aiming for a corridor of between 8% and 12% Adjusted EBITDA, and I expect us to be towards the high end of that corridor. Thank you. As Ali mentioned, the 12% is the high end for the industry, so we would like to get closer to that. As for me, through the active utilization of digitals and other capabilities, we would like to make a breakthrough and go beyond that 12%. Thank you very much for your answer. We'd like to take another question. Are there any other questions? There are many hands raised in the venue and also online, but because of the time limitation, I have to ask you one question per person, please. Okawa in the venue, please. Thank you very much. This is Okawa from Daiwa Securities. I'd like to ask you about the scaling of Lumada. One Hitachi is the concept, and synergy across our segments and also in this innovation hub, you have a close relationship with customer. Solutions are also increasing. Horizontally, the Lumada sales will also be promoted and accelerated because of that. Are there any particular things that you're doing, any challenges, are there any ongoing programs that you'd like to explain? Could you please talk about them? Yes, Okawa-san, thank you very much for your question. As you pointed out, Lumada solution, the and scaling of the Lumada business is indispensable to the growth of the business. Particularly, for example, today, as I mentioned, materials informatics, something like a solution like that. Actually, more than 50 companies, 50 customers, well, they have the ask for those businesses with us, and we are trying to deploy that further. This is the solution that is being scaled up. Together with the GEM sector, enterprise asset management is what we are doing, the software business, which is also being scaled up currently. Lumada's scaling is one of the important patterns of Lumada, which is being significantly promoted. If we are to make one step further, then managed service on cloud, that capability has to be strengthened, and that's the one challenge for the business, the target. We are focusing upon HARC capability. To further strengthen that cloud integration capability, including inorganic shall be strengthened. So much broader, and the actions are under within our visibility to strengthen the business. Thank you very much. To make some additional comment, now, Lumada business, the profitability is improving by 1 percentage point every year. Where does it come? Well, because of the scaling and the initial investment of the recruitment or the payback is getting faster. We would like to make this faster, even faster. As the EVP Tokunaga mentioned, in order to do so, well, the bottleneck regarding the scaling of the business is that. If we are to use the one solution to another company, that customer, well, may have a very old IT. Modernization may be needed for them. This happens quite frequently, and that takes up some time. Cloud integration shall be enhanced so that we can create, achieve modernization quickly, and, yeah, that works. That's what Tokunaga-san's team is doing right now. Thank you for the answer. Any further questions? Tanaka-san, who is participating in person, please go ahead. Thank you for the presentations. My name is Tanaka from Mizuho Securities. I have one question of Mr. Kawamura. Conglomerate premium, I like your thinking on that. Through a business reform for each sector, competitiveness has been raised and improved. The conglomerate negative is being eliminated, in order for conglomerate benefit or premium to be enjoyed, what do you think is necessary? With one in three synergies to be raised to raise profitability of each sector, it may take time. As an interim KPI, what should we be focusing on so that conglomerate premium can be appreciated? Thank you very much for the question. Conglomerate, premium, there are difficult discussions on that. What we're trying to look at is we have three business sectors. When the sector independently operates, what would be the corporate value of each? When the three segments are merged, then what would be the overall corporate value? If the overall corporate value is greater with the three combined, then there's a premium. In order to increase synergies, we have to increase collaboration between segments, and we have to have common investments and common strategies. So we need to increase such cross-sector collaboration, and this is something that I'm working on as well. At the corporate level, we look at investment for every sector on a global basis. In a certain sector, there's investment made in North America, we know what's going on. We get that information real time. When the next sector goes to the same area, these are the lessons we can tell them. From the overall management perspective, with the three sectors working with each other, we can get better information, better instructions can be given. Cross-sectoral collaboration business-wise, and we have this global view at the corporate level. With that combined, we believe that we can generate a premium. What should be the KPI? This is mathematical calculation. When three segment operates independently, what is the corporate value? What is the growth rate? If the three are merged, what will the numbers be? By comparing the two sets of numbers, we have to set a KPI based on the difference. That's our basic thinking. Thank you. Next question, please. Yoshizumi-san, please go ahead. My name is Yoshizumi from SMBC Nikko. Thank you very much. One question, on the conversion rate related to net income, I'd like to ask you about the idea here. As you explained, in the past, you focused upon the restructuring, but structural reform. Now you're focusing upon the growth. The impairment, well, in the second quarter, and also in the fourth quarter of the last year, you also had the impairment. I understood the growth potential growth scenario based upon Lumada. The non-Lumada area, I don't have the good understanding about the non-Lumada area. If you no longer have impairment or the conversion rate, the issue, then probably you can make improvement, but I'm not quite sure about that. Could you please explain on this point? Well, Kawamura-san, after Kawamura-san, the each sector will respond to that question. Thank you for the question. Conversion rate, for example, from operating income to net income, how will the numbers change from one to the other? For FY2022, what's in between the operating income and net income is the Hitachi Construction Machinery, Hitachi Metal. They were restructured. That impact was reflected, and restructuring of Hitachi Astemo also was a factor, and changes in the prices, and then comes the net income. As I said, I think major restructuring is over. JPY 1 trillion level M&A or divestment on a large scale, such as Hitachi Metal, is over. No major restructuring any further. I think that's one of the reasons we can point to you to raise the conversion rate. Impairment, we have already dealt with large impairments. For example, Astemo is going to be divested. There is a large impairment associated with it for brakes. That's already taken care of. All the remaining impairments are smaller at each sector level. Taxes, rationally, with various approaches, we're minimizing taxes. Impact from taxes is also minimized. On an individual basis, what will be the impact from impairment? We can convey that to you. We can tell that to you, but large divestitures, large impairments, large tax impacts, these three major factors impacting conversion rate are already controlled well. I'll just add to that. Far, at the business unit level or at a large subsidiary level, well, if there's a problem, we would try to divest that, restructure and divest that. That's the kind of portfolio transformation that we try to pursue. As Yoshizumi-san said, there are a lot of other things that need cleaning up, but it's a smaller level initiative. Below the business unit or below an affiliate or subsidiary level, there are things that require cleaning up. Of course, we need to continue with the cleaning up, otherwise, they will be a drag on Lumada's business. In the next phase, or the next step, for each sector, at a level lower than the business unit, review of the capital cost will have to be done. What is the risk of impairment? All of that needs to be managed better. I would like to turn to the EBP of each sector to say further. Yes. Mr. Kojima, Mr. Kawamura already mentioned the most of the answer. From a DSS point of view, what could be the major risk is the PPA and rising PPA, and also the goodwill. Because of the acquisition of GlobalLogic, it is building up to a high level. The profitability of GlobalLogic, without sacrificing the or impairing the profitability and the growth of GlobalLogic, that's a quite important consideration for DSS. So far, well, the high growth and high profitability has been maintained for GlobalLogic. In order to maintain this status, we would like to make adequate investment, and also the coordination with the Japan side shall be strengthened so that we can support the business expansion. The future disruptive technologies, if they emerge, existing assets, well, they are quickly obsolete, and that's something that we have to be prepared for. We need to take the proactive action, so we need to keep an eye on the market situation and take the quick response to that. That is all for my part. Next, Ali, please. Yeah, thank you very much for the question. Anything that requires cleaning up in, within the GEM sector, if you could answer that question? Sure. Well, I mean, in the GEM sector, we're very much focused on both top line and bottom line growth. For Lumada, we're working very, very closely with GlobalLogic to improve our Lumada ratio, which includes digitally enabled solutions and our service business, which is being applied to the delivery of our backlog. The top line growth, we have experienced CAGR of 13% over this Mid-term Management Plan, which is very strong growth in the top line. Looking at our non Lumada business, we've worked hard to de-risk that business. We've de-risked sort of EPC for our HVDC business. We've applied very strong project governance, so we've been selectively bidding, and taking a very selective approach to the contracts that we win, which is there to optimize and improve our profitability. Also to look at mitigation for issues such as price escalation mechanisms in our contracts, to recover off risks such as inflation, and to ensure stronger profitability in the future. Lastly, I, Aoki, would like to respond. According to the question, they are starting from the Mid-term Management Plan 2019, they have been talking about this topic. Compared to those days, particularly in the CI sector, business line, no major losses or the potential for the impairment, we have almost no potential for impairment. Another aspect of your question is of course, we need to manage the business so that we will not see the recurrence or the re-emergence of the impairment. How about the non-Lumada business? The other people also asked about the non-Lumada and the Connected Industries as. For my position to lead the Connected Industry, the digital and the Lumada concept shall be promoted strongly and the. Not only those are the areas, if I may so, because all the other companies are looking at the digitalization, digital area. Well, we have 60-70% that is a product business. Also earlier, there was a discussion on the conglomerate and EBITDA and how to well, that is what I'm thinking about in my business area. I repeated the expression, Total Seamless Solution. Domain knowledge is the absolute strength that we can take advantage of. Each BU and the two group companies, well, it shall not be they are kept only at one business unit or one group company. We need to use it as the strength for the entire Hitachi. That is essential, and the viewpoint. Another key point is recurring business. I mentioned about the recurring business already in my presentation, but the recurring business will give us, is the asset that gives us a strong, continuous revenue. It was, well, they used to call, we call the after-sale service, but on the maintenance of the service, which tends to be a independent, separate business in the other players. Connecting all the points of the value chain, what's going to happen to that business? We are doing that in order to raise the profitability of that business. Also, green access is another viewpoint, and this is, the world will continue to focus upon this area. Green, it is not that the one independent single company can take up everything related to green and generate profitable business. We would like to focus upon the green in our non-Lumada area. Well, non-Lumada doesn't mean the no-good business. It is not as simple as that. This is the access that we are looking at in order to enhance all the different types of business. Is this okay to respond this way? No problem? Just to add to what Ali earlier said, the sector that Ali oversees, has lots of factories and plants. Consolidation of plants and factories is always important, so we regularly engage in that, depending on the locality. Where there is a factor, the significance of having the factory in that location, could decline. Consolidating factories and plants, I think is necessary, so we need to continue to clean up in that regard as well. Any other questions? We are going to take another question. Aida-san, in the venue, please. Thank you very much. Aida from JP Morgan. Idea about the earnings or the profitability, well, you already mentioned on this point, but from ROIC point of view, including this fiscal year, the 7%-8% ROIC, they remained flat at that level. The 10% next year may be a little challenging to achieve that considering your past performance. Lumada co-creation business model, in this model, well, a certain level of the investment, including investment in the human capital, is needed. The efficiency, it may be difficult to raise the efficiency in this field, if I may say so, and the scaling of the business, if that is promoted. The Lumada business and it is improving by 1 percentage point every year, and in the next limited management plan period, is it going to accelerate? Aoki-san earlier talked about the product business, and that's exactly where I wanted to raise a question. As CI sector, the higher profitability business, if we are to go to higher profitability business, the product market share is another aspect. Is it okay to keep the market share of current product business at the current level? You talked about the expanding the domain or the. How about the increasing the share in the coming 3 years or so? Do you also have that idea? Maybe Akama-san, please respond to that. Thank you very much. About ROIC, what you said is correct. 7.6% was the ROIC in FY 2022. FY 2023, 7.8%, 7.9%, close to 8%. We're looking at the next year, will it hit 10%? We need to raise it by 2 percentage points, the hurdle is pretty high, we haven't given up on that. The reason for not giving up on that is, if we look at the invested capital in ROIC, because profitability is building, equity is going up, what to do with that is one of the biggest things we're discussing. We have to be flexible. We may need a leverage at some point in the future, we don't have a specific plan for that. With accumulated equity, we may want to use that to repay borrowings so that we can control the capital that's invested. We're discussing that issue from various perspectives. As I may repeat, well, with a simple calculation, currently, ROIC is around 9%, but we would like to lift it up to 10%. We're trying to control capital better. On the profitability side, as I said, in view of the potential risks, we have reduced the number by 1 percentage point or so. If our risks are going to be alleviated, it will go up again. We have not reduced the overall target of 10%. That's where we are right now. Aida-san, well, there was mention about scaling, because it takes up so many personnel, how is capital efficiency going to be raised? I think that's what you're trying to call out. Actually, that is true, inclusive of Lumada business. We have to increase efficiencies even more, and for that, profitability needs to be raised, and one is scaling, scale up. Another approach is to utilize generative AI. Raising the efficiency of systems developers, if we can do that, we will be able to provide a fundamental solution to this issue. As Mr. Tokunaga said, since a while ago, we have been working on low-code, no-code. We want to finish POC in the current MMP, and under the MMP 2027, we would like to try that in a more full-fledged manner, including scaling. By so doing, we would like to improve our capital efficiency drastically. That's our thinking right now. Aida-san, thank you very much for your question. We have been discussing with you, thank you very much for asking a very good question. Market share. Yes, I like market share very much myself, I'm willing to go to the battle to capture the market share. The simple market share, it is not that we will go for higher market share alone. It is not so simple because the profit, the growth, should come along with the profit improvement as well. Even in the product business, including aftermarket and recurring business, the total marginal income, how much total marginal income we can generate in the recurring business, and how about the percentage and the ratio of our recurring business? Depending upon that, well, the type of market that you, the product market you would like to capture by spending a lot or the other, the niche type of product market, and they are different. Even in my own, in our own businesses, they are different. The large, voluminous market, where you need to invest significantly, or another area which has a unique feature, but the kind of a product that gives you the unique niche value, we need to have a different approach. That is my idea about those, the product business. Thank you very much. It's time. With that, we would like to clear the questions and answer session at this moment. Lastly, we would like to have remarks by Keiji Kojima. Ladies and gentlemen, thank you very much for your attendance and participation today. We spent many hours, you must be tired, but the Q&A session that we just had was very fruitful because we were able to discuss so many different things. We would like to make sure to feed back your input to our company for MMP 2024, and we have now come to a point where we have to think about the next MMP 2027. I would like to use your input as a reference. I look forward to continue the close communication with you going forward. I've repeatedly said that we're going to enter the growth mode. Unless we deliver results, it will not sound convincing. You will not believe what we're saying. Each and every quarter, we need to deliver results, to live up to your expectations. I look forward to your continued advice and counsel. I look forward to your continued understanding and cooperation. Thank you once again!