The presentation meeting by Hitachi, Ltd. on the consolidated financial results for the year ended March 31st, 2023, and the progress of the Mid-term Management Plan 2024. Ladies and gentlemen, thank you very much for taking the time out of your busy schedule to attend this meeting. CFO Kawamura will explain the financial results. After that, President Kojima will make presentation on the progress of the Mid-term Management Plan 2024, which will be followed by a QA session. The presentation materials are available from our website, IR site of Hitachi, Ltd., as well as news release site. Please check this website for the materials. Allow me to present today's speakers. Keiji Kojima, President and CEO of Hitachi, Ltd. Yoshihiko Kawamura, Executive Vice President and Executive Officer CFO. Tomomi Kato, VP, Executive Officer Deputy CFO. These are the three speakers who will be presenting today. CFO Kawamura will give you the outline of the consolidated financial results, and please wait a little while to prepare the presentation material. The floor is yours, Mr. Kawamura. My name is Kawamura, the CFO of Hitachi, Ltd. Thank you very much for taking time out of your busy schedules to join us. We appreciate the large turnout. For the first 20 minutes, I would like to report on the consolidated financial results for fiscal year 2022 and provide a forecast for FY 2023. If you could please look at page one of the material, you'll find the contents of today's presentation. I would like to deliver the key messages of the financial results, FY 2022 results. The financial performance for the year that has ended, and then forecast for this fiscal year, fiscal year 2023. That will be the order. If you could proceed to page three. There are four key points, key messages. Point number one, FY 2022 is enhanced on a consolidated basis. Total revenues was JPY 10 trillion, 881.1 billion year-on-year, 6% increase. Our most important KPI, adjusted EBITDA, was JPY 884.6 billion, up JPY 29.2 billion year-on-year. Equally important, core free cash flow was JPY 416.4 billion, up by JPY 126.3 billion year-on-year. All these targets were met. As a result, net income came to JPY 649.1 billion, up by JPY 65.6 billion year-on-year. JPY 649 billion. Our announced target was JPY 630 billion. Net income overachieved the target that we had. As is stated below, fourth quarter saw increase in revenue and income. On page 19, there are details. Please look at them later. Number two, portfolio reforms and transformation is progressing quite successfully, as is written here. Partial share sales of Hitachi Construction Machinery has been completed. It's down to 25%, and so it's fully deconsolidated. Hitachi Metals and Hitachi Transport System, our stake is zero right now for these two entities, so they are completely independent of Hitachi. Regarding Hitachi Astemo, we made an announcement about Astemo in March. Our stake is to be down to 40%, and Honda and JIC will increase their stakes in Hitachi Astemo, newly joining. Because of our stake of 40%, it will be deconsolidated. It will be an equity method affiliate in September 2023. Portfolio transformation is progressing well. Number three, what to do with our shareholder returns under those circumstances. On an annual basis, our dividend payout is JPY 145. Interim dividend was JPY 70 per share, and year-end dividend is planned to be JPY 75. After the results are audited by the auditor, AGM, held in May, will determine this officially, but at this moment, our year-end dividend plan is JPY 75. Share buyback for FY 2022, we conducted JPY 200 billion of buyback. For FY 2023, we're considering doing JPY 100 billion, which was resolved by today's BOD. That is the shareholder return we have in plan. Number four, what is the full year forecast for FY 2023? The three sectors will be referred to as consolidated businesses inclusive of Astemo. We have deconsolidated businesses as opposed to consolidated businesses, so we use this term, consolidated businesses. Forecast revenue is JPY 7,840 billion. A 3% increase year-on-year. Adjusted EBITDA planned JPY 800 billion, up by JPY 75.1 billion year-on-year. Net income JPY 496.0 billion. YOI down JPY 145.7 billion. This is going to be transient. We are transforming portfolio, so net income will see a decline to JPY 496 billion, but this is not necessarily relevant to the earnings that we have as part of our BAU. That was the outline. If you could please look at page five, I would like to provide you with the details. This is a review of business environment on page five. As is stated in the upper half, a semiconductor shortage, in particular for automotive industry, is continuing, and impact ensues for Astemo. Electricity rates as well as parts prices, material prices, are also continuing to be high. Semiconductor shortages, soaring material prices, transportation costs, soaring electricity price. Ukraine and Russia was also plotted on the horizontal axis before, but after a year we have been able to have quite a bit of control. There's very little financial impact from the war, so we have excluded that. Semiconductor shortage, at the bottom you can see that Hitachi Astemo is seeing major impact. We're expecting recovery, but because not much investment goes into semiconductors for automotive industry, so supply and demand continues to be tight, and soaring material prices, transportation cost is impacting Hitachi Astemo, especially wire harness, electrical steel sheet, as well as electricity wires, copper and so forth. The cost is rising, procurement cost as well. Electricity price increase is impacting our plants and factories, especially business on Hitachi Astemo. Green Energy & Mobility in the middle of the table. In the power grid business, electrical steel sheet supply continues to be tight, so the impact from that is severe. That is part of the general business environment. If you could please go to page six. The numbers I gave you up front are broken down here. Please look at the captions. The three sectors. This is a review for FY 2022. We do not use consolidated versus deconsolidated. We still use the term three sectors. A consolidated results, Hitachi Astemo and listed subsidiaries, as we have done conventionally. JPY 10.881 trillion revenue, adjusted EBITDA JPY 884.6 billion, its ratio 8.1%, net income JPY 649 billion, EPS JPY 684, core cash flow JPY 416.4, ROIC 7.6%. All targets are met. Please have a look at the three sectors to the right. Third from the top, adjusted EBITDA ratio. On a consolidated basis, it was 8.1%, but three sectors it's 9.5%. Below, net income JPY 641.7 billion for three sectors, EPS JPY 676, up by JPY 134 per share. To the right, please have a look at Astemo's business. Revenue at the very top, JPY 1 trillion 920 billion. Adjusted EBITDA JPY 73.4 billion. Both revenue as well as income increased. Last fiscal year, Astemo was suffering under very severe environment, revenue as well as profit both increased for FY 2022. Net income is still negative, as it is in the text. There were one-off losses. Risk-sharing pension plan was introduced. That was a one-off loss factor. An impairment occurred, impairment loss was also included. As a result, Astemo's net income was negative. Net loss was posted. On the far right, listed subsidiaries, Hitachi Construction Machinery and Hitachi Metals. Page seven. The numbers on page six are further broken down by sector. Digital Systems & Services, Green Energy & Mobility, Connective Industries at the very bottom. First, at the top, Digital Systems & Services. FY 2022 revenue JPY 2 trillion 389 billion. Adjusted EBITDA JPY 293.7 billion. In terms of the ratio, 12.3%. Very high ratio was posted. On the right, year-on-year, both revenue as well as profit increased for Digital Systems & Services. In particular, GlobalLogic did well. Please have a look at this column. It's going through high growth. Adjusted EBITDA JPY 45.2 billion. Its ratio 20.3%. You can see that adjusted EBITDA as well as revenue are increasing for GlobalLogic as well. In the middle, Green Energy & Mobility, our revenue JPY 2.492 trillion. Adjusted EBITDA, JPY 132.7 billion, 40.4% ratio, revenue and profit grew. Hitachi Energy in particular, revenue JPY 1.413 trillion, adjusted EBITDA JPY 101 billion, 35.7% revenue, 31% increase. Both revenue and profit grew. Connective Industries revenue, JPY 2.975 trillion. Adjusted EBITDA, JPY 312 billion. Both revenue and profit grew for this sector as well. Building Systems, Measurement and Analysis Systems, Hitachi High-Tech, they account for a large share within the Connective Industries. For Building Systems, revenue JPY 891 billion, adjusted EBITDA JPY 83.6 billion. Revenue up 8%. Adjusted EBITDA ratio JPY 13.8 billion. Measurement and Analysis Systems, Hitachi High-Tech JPY 674.2 and JPY 92.6, 17% up, ratio 33.8%. Hitachi Astemo, because of semiconductor shortage, JPY 1 trillion 920 billion of revenue, JPY 73.4 billion of adjusted EBITDA. It's tough, revenue increased by 20%, EBITDA ratio 11.1%. The consolidated numbers are at the very bottom. Please have a look at page eight. FY 2021 to FY 2022, how it has evolved. What is the trajectory between FY 2021 to FY 2022? At the bottom, revenue, rather at the top, revenue, at the bottom, adjusted EBITDA. Take a look at revenues. On the far left, FY 2021, it started off with a revenue of JPY 10.264 trillion in GlobalLogic acquisition impact, as posted. Hitachi Construction Machinery and Hitachi Metals divestiture impact came in, there's Forex impact, quite large, which was around JPY 800 billion, lifting the number. Organic growth was also posted. FY 2022 revenue was JPY 10.881 trillion. Take a look at the bottom, adjusted EBITDA. On the far left, FY 2021 starting with an EBITDA of JPY 855.3 billion, with the GlobalLogic acquisition impact, HCM and Hitachi Metals were divested, a Forex impact of plus JPY 73 billion. There were changes in the business scale, with positive JPY 7.1 billion, resulting in JPY 884.6 billion in FY 2022. Please have a look at page nine. Adjusted EBITDA to net income, what is the trajectory? At the top, FY 2021, at the bottom, FY 2022. Have a look at FY 2021. On the far left, adjusted EBITDA JPY 855.3 billion. That was the starting point. With acquisition, goodwill was amortized down JPY 76.6 billion, business reorganization, JPY 102.1 billion. On the right, there are breakdowns, structural reform expenses are down by JPY 43.8 billion. There is interest cost, extraordinary gains and losses, income taxes, JPY 168.4 billion, which is normal, non-controlling interest, JPY 87.3 billion negative. The result was JPY 583.4 billion. At the bottom, FY 2022, adjusted EBITDA of JPY 884.6 billion, there was acquisition-related amortization and net gain on business reorganization. HCM and Hitachi Metals divestiture, as well as Hitachi Transport sales proceeds came in. Structural reform expenses, JPY 139.2 billion as a cost. Interest cost of JPY 25.6 billion. Others, JPY 113.6 billion. Income taxes, JPY 116.1 billion. The rate was 14%. Usually, it is 25%, but reduction by 10 percentage points because of utilization of DTA and deemed dividend, which was not taxed. Tax efficiency rose. Non-controlling interest, net income, on the far right, JPY 649.1 billion. Please go to page 10. On a single sheet, we show the financial position and cash flow. In the gray, in the middle, please take a look at that column. This shows as of the end of March 2023. As of March, the Astemo business is fully incorporated, the asset total is JPY 12 trillion, 501.4 billion. JPY 12 trillion, 501.4. That is for total assets. What is noteworthy is all the way down to the interest-bearing debt at the end of 2022. The JPY 2 trillion, 213.3, compared to the previous year end More than JPY 900 billion, this amount has been reduced. We borrowed for the processing of the Astemo, the repayment has already been over. That has been the negative impact to push up this number. Looking at the cash conversion cycle, 58.1 days. We made recovery improvement by 28 days. The Hitachi Construction Machinery had some impact on these days, but now it is not included, that was positive. The total Hitachi, Ltd. shareholder security ratio is up. We are building up the equity up, the ratio has come up to 39.5%. The ratio used to be 0.58 times at the end of last year. However, now we have come down to less than 0.5. Now it is 0.41 times. Cash flow, all the cash flow numbers are improving. The operating cash flow, JPY 827, which is improvement of JPY 97.1 billion. The cash flow from investing activities also improved significantly. The far right, JPY 1,199.9 billion improvement year-over-year. Free cash flow also improved, JPY 978.1 billion. Core free cash flow, which is one of the most important KPI, is also improving, JPY 416.4 billion. There are so much. Far, I talked about the results of the FY 2022. Now I would like to talk about the full year forecast of 2023. Please take a look at the page 12, which is the highlight of our full year forecast of 2023. At the top, please note some bullet points. This shows some of the assumptions for this full year forecast. Because of the competitive law consideration, it has been delayed, which is about the acquisition of Thales railway signal-related business. We are expecting this to be completed by September, so this will be incorporated in the second half of the year. Astemo is different. In September, this company will become the equity method affiliate in September this year. On the left-hand side, you see total, the column, in the middle, continuing consolidated business. We do not use the three sector businesses, but we changed the naming of the businesses. In the middle, please take a look at the middle column. Continuing consolidated businesses, revenue JPY 7,840 billion, 3% increase here. On the left-hand side, you see percentage in parenthesis. This is the number erasing the impact of the foreign exchange, which is 4%. Adjusted EBITDA, JPY 800 billion, increased by JPY 35 billion. Adjusted EBITDA ratio, 9.5% on the left-hand side, but looking at the continuing consolidated business, it will come up back to double digit, 10.2%. This ratio has been improving. The net income, JPY 496 billion, EPS JPY 529. Looking at the left-hand side, the non-consolidated, it is 45 and JPY 4.5 billion. Altogether, JPY 500 billion. That is the target figure, which we would like to announce. Looking at the consolidated column, core free cash flow, JPY 310 billion, ROIC 7.5%. These are the targets that we have set. Exchange rate is moving quite rapidly, and that is impactful. On the right-hand side, at the bottom, you see assumption, JPY 130 to the USD is the assumption for the USD. The Forex sensitivity by the change of JPY 1, the positive and negative are the same, but the revenue impact will be JPY 13.5 billion, adjusted EBITDA impact is JPY 1.5 billion. This is the sensitivity. Please go to page 13. As I mentioned earlier, this is the broken down analysis by sector. First of all, at the top, Digital Systems & Services. Revenues JPY 2,450 billion, adjusted EBITDA JPY 308 billion, 12.6%, which is quite high. Year-on-year, year-on-year basis, 3% increase for the revenues, and the adjusted EBITDA increased by 14.2%. Both the revenue and the profit are increased. You see the breakdown by the businesses, like front business, IT service, and services platform. 9.8% for the service and platform, which is not double digit. We are making efforts in order to push this up to double digit. We are taking various improvement measures. Next section, Green Energy & Mobility, JPY 2,580 billion, adjusted EBITDA JPY 173 billion. Year-on-year, the increase, both in terms of revenue and profit. The JPY 2.5 trillion of revenue, that is the size of this business. You see breakdown by the company, Hitachi Energy, JPY 1,362.5 billion revenue and JPY 112.5 billion profit, 8.3%. There is a brisk demand, and we are investing in the facility so that we will be able to respond to the increasing demand. We are somewhat slow in terms of augmenting the production capability to respond to the demand. There was an increase of the adjusted EBITDA and the related cost, JPY 28.7 billion. This includes IT and the acquisition-related cost, JPY 28.7 billion for these purposes. Below that, Railway Systems, revenue JPY 907.3 billion, and the adjusted EBITDA JPY 56.8 billion, 6.38%, increase by JPY 9.3 billion, and increase by 23% for the revenue. Please go to page 14. This is about the Connective Industries. Here, this section reaches to JPY 3 trillion revenue level and adjusted EBITDA JPY 330 billion, 11%. On a year-on-year basis, 1% for the revenue and JPY 17.8 billion increase for the adjusted EBITDA. Increasing revenue and profitability. They are starting from building 10%, and that is the EBITDA ratio for Building Systems, and 11.4% for GLS, and 12% for Hitachi High-Tech, and 11.6% for Industrial Digital, 11.1% for water and environment, and 10.9% for the industrial products. In this sector, the EBITDA ratio is double digit. Looking at the Building Systems, the revenue is down by 6%. It is because of the ongoing adjustment phase of the Chinese real estate market. In High-Tech, the measurement and analysis, -1%, it is because last year was a very booming year for the semiconductor production equipment, and this is because of the repercussion from last year. However, profit-wise, it is very solid. Please go to page 15. This is about the affiliated companies. I would like to talk about the Astemo, which is at the top. This only includes first quarter and second quarter only, the year-on-year will be one half. 3.6% for the adjusted EBITDA. This page 16, shows the trajectory of adjusted EBITDA and revenue. Revenue starting from 2012, and far right 2023 forecast. Adjusted EBITDA, the comparison between FY 2022 and the 2023 forecast. The major difference between year 2022 and 2023 is impact of exchange. In last year 2022, the exchange rate was positive. However, in 2023, the impact of the exchange rate will be negative for both revenue and the EBITDA. It was JPY 135 to the dollar, that was the assumption for last year, but this year 2023, it is going to be JPY 130 to the dollar. Adjusted EBITDA, far right, in 2023, JPY 835 billion. The next page 17, shows Lumada business. In the circle, you see percentage of the adjusted EBITDA. From left to right, you see FY 2021, 2022, 2023, 12%, 14%, and 15%. The profitability is rising according to the plan. The revenue, JPY 2.1 trillion, that is our expectation. On the right-hand side, new Lumada business ratio is indicated. Out of the total business, here, how much Lumada business accounts for in the total. On the left-hand side, the revenue in 2023 is going to be 29%, nearly 30%. Adjusted EBITDA-wise, far right, it will go up to nearly 40%. Certainly, the portion of Lumada business is expanding. Below that, you see the bar, which shows the different business compositions of Lumada. Then we have some appendix, and I would like to give you a flash. Page 19 only focuses upon the fourth quarter number. Page 20, far left in gray, shows the fourth quarter 2022, and in the middle, fiscal 2022 full year. Starting from revenue to adjusted operating income, EBITDA, the adjustment was made, and it goes down to EBIT. You see flow. The net income is JPY 649 billion. Far right is the 2023 forecast. What I'd like you to see is in the middle, fiscal 2022 and others, below adjusted EBITDA and the JPY 113.4 billion negative, it is because of the transition of the new pension system. Page 21 is the region revenue by market, and new trends are emerging here. I'd like to call your attention to consolidated total year-over-year, second from the bottom. Here, how much percentage increase is seen? In North America, 21%. This is the fastest growth. Next to that is Europe, 18%. As a result, at the bottom, you see ratio across the regions. Japan is lower than 40%. Next, North America, 17%. China, 12% right now. There are some changes and reshuffling of these regions. Next, page 22. This shows the orders results by business segment. Page 22, on the right-hand side, please take a look at the gray. Building systems and the other, you see 16%, 12%, 8% or 20%. You see increase. Green Energy & Mobility, the nuclear energy and the energy are negative, but Hitachi Energy and Railway, 64% and 65% respectively, the order level is quite high for these businesses. On the right-hand side, Connective Industries and the smart life and also measurement and analysis. These are negative, but all the other businesses are positive in terms of the order placement. This concludes my presentation. Thank you very much. Next, our President and CEO, Mr. Kojima, will give progress on Mid-term Management Plan 2024. Kawamura-san, thank you. Next on Mid-term Management Plan progress, Mr. Kojima will speak. We're going to switch the material. Over to you, Mr. Kojima. This is Kojima speaking. I would like to explain the progress of Mid-term Management Plan 2024. There are three main points I would like to convey to you today. Number 1, in view of our FY 2022 financial performance, I wish to once again explain how Hitachi positions its FY 2024 MMP, Mid-term Management Plan. Secondly, describe how we're looking to enhance Hitachi's enterprise value through our social innovation business. Thirdly, to describe the status of our sustainability management to support growth. Let me explain these three points one by one. First, on the position of our FY 2024 Mid-term Management Plan. Following the management crisis in the wake of the global financial crisis, Hitachi made a decision to concentrate on the social innovation business and embarked on a transformation of its business portfolio with the aim of becoming a global leader in the social innovation business. As a result, as of FY 2022, Hitachi no longer retained any listed subsidiaries and also announced that Hitachi Astemo would be deconsolidated to be an independent company, targeting to achieve IPO. Now that Hitachi has completed a portfolio transformation, for now, we will shift our management focus to sustainable profit growth. MMP 2024 therefore marks an important turning point for us to make a modal shift from business portfolio transformation to organic growth, and to accelerate efforts to enhance Hitachi's enterprise value under One Hitachi. Let me briefly review the track record of our business portfolio transformation efforts so far. To expand the social innovation business globally, since 2013, we have acquired necessary assets worth revenues of JPY 3.1 trillion. In parallel with that, we have also transferred or divested business assets worth a revenue of JPY 5 trillion that we believed would grow even further if made independent from Hitachi to optimal partners that we have chosen. Business portfolio transformation drastically globalized Hitachi's assets. In Europe, in particular, assets were mainly acquired in green areas such as those for electricity and rail. Whereas in the U.S., large asset increases occurred in digital, green, and industrial domains. Going forward, we will be looking to drive our businesses organically, primarily utilizing our augmented assets in the United States. On this slide, I will briefly explain about the major acquisitions we have made, including Hitachi High-Tech, Hitachi Energy, and GlobalLogic. After their integration, and integration is complete for all three entities, all of these companies are operating as engine for Hitachi's global growth. Hitachi High-Tech, as Kawamura-san earlier explained, achieved a record high profit in FY 2022, while Hitachi Energy is vastly increasing its order intake, helped by a tailwind from the GX market. GlobalLogic is maintaining high growth, benefiting from the tailwind of the GX market, which is growing as well. We are increasing investments into these three companies to further drive growth. With great progress made in the FY 2022 business portfolio transformation, large entities, including listed subsidiaries and Hitachi Astemo, will be deconsolidated during the MMP 2024 period. To reflect the impact of deconsolidation, we are updating the major KPIs for MMP 2024. More specifically, we will subtract the revenues, profits, and cash flows of our listed subsidiaries and Hitachi Astemo from our actual and planned performance for FY 2021 through 2024, and add equity in earnings from these affiliates after deconsolidation. Of the major KPIs, those on revenue growth, profit margin, ROIC, and EPS will remain unchanged. Targets for these will be kept. Core free cash flow and shareholder return will be revised, reflecting reduction in operating cash flow following deconsolidation, and also cash inflow increase from asset sales. For these changes, I will provide you with further details later. Next, I would like to discuss how our social innovation business will contribute to enhancing our enterprise value and its strategy. First, let me again explain Hitachi's social innovation business. Hitachi defines its social innovation business as a business that leverages Hitachi's IT, OT, and products that are strength for Hitachi to solve social issues together with customers. The purpose of this business is, through our data and technology, to work with customers to build a sustainable society, supporting people's happiness and quality of life. We will seek to harness the three major trends of digital, green, and connective that would dramatically change our society and industry. As drivers of transformation to expand our social innovation business in a broad range of areas, Lumada is a social innovation business customer co-creation framework to drive further growth, leveraging digital technology. The basic part of the global growth strategy for our social innovation business is to utilize the customer footprint that we have obtained through large acquisitions, leverage Hitachi's diverse capabilities, and to expand Lumada business under One Hitachi. As I have already described, large-scale global M&As have brought about considerable additions to our human resources and customer footprints in different regions around the world. We will put them to full use so that we can provide, together with our customers, solutions to high-priority social challenges that each of these regions around the world faces. I will now explain where our Lumada business is at this moment, given that this is key to elevating our enterprise value through social innovation business. As the graph on the slide shows, expansion of Lumada business is the engine behind Hitachi's overall growth. On the back of the tailwind from the growth in the DX market, Lumada has been expanding successfully and is now accounting for a greater share of Hitachi's total revenue and profit. In FY 2024, Lumada is expected to account for one-third of Hitachi's total revenue and over 40% of the entire profit of Hitachi. Lumada business is also the driver for Hitachi's profit margins or profitability as well. Lumada's customer co-creation framework has generated a large number of use cases and solutions. When these use cases and solutions are increasingly reapplied and reused, that leads to higher profitability. Growth in digital engineering upstream with high profitability and managed services with high recurring rates are also contributing to lifting profit margins for Hitachi. As was shown on the previous slide, increased share of Lumada as a percentage of our total business is what is driving Hitachi's profitability overall. In the previous restructuring phases, the bottom line was unstable due to significant one-time effects, such as gains from asset sales and large losses from business exit. Going forward, the impact of one-time gains from large asset sales will decrease. On the other hand, unexpected risks such as pandemics and geopolitical instability will continue to emerge, and we will strengthen risk management to minimize such one-time losses. On this slide, we listed some of the potential risk factors, and we intend to minimize them so that we will be able to move into the stable bottom line growth phase. This shows the capital allocation policies for our sustainable growth. While cash flow from asset sales will increase to JPY 1.1 trillion due to the sale of a portion of Hitachi Astemo's shares, core free cash flow will decrease to JPY 1.2 trillion due to the deconsolidation of Hitachi Astemo, so the total is expected to remain unchanged at JPY 2.3 trillion. Among the allocations, growth investments will be made with a focus on digital, green, and innovation, and will be implemented by strictly applying financial decision criteria. When there are attractive growth investment opportunities, we will flexibly utilize financial leverage using a net debt/EBITDA multiple of one to two times as a guideline. Today, we announced that we will increase our dividend to JPY 75 per share and repurchase JPY 100 billion of our own shares. As for the total amount of shareholder return, we intend to increase it from JPY 0.7 trillion, which is 50% of core free cash flow in our initial plan, to JPY 0.8 trillion-JPY 0.9 trillion, taking into consideration the guideline of 50% of net income. I have explained about the top line growth, high profitability, and also bottom line stabilization and cash generation described so far will lead to EPS and CFPS growth in order to generate the higher shareholder return level. As for the top line, we will capture the tailwind of DX and GX and achieve sales growth of 5%-9% going forward. For higher profitability, we will achieve 12% or higher adjusted EBITDA margin by expanding the Lumada business. We will also stabilize the bottom line with an adjusted EBITDA to net income conversion rate of over 60%. Furthermore, by further enhancing cash generation, we will increase the conversion from net income to core free cash flow to over 80%. As a result, we aim to achieve EPS of over JPY 600 and core free cash flow per share of over JPY 500 in FY 2024. Next, I will explain Hitachi's progress regarding sustainability management that supports growth. First of all, I will describe the status of the strengthening of the human capital. In the Mid-term Management Plan 2024, we have set three important goals, acquiring and developing digital talents, promoting DEI, and improving engagement. We are making steady progress in strengthening our digital human resources by utilizing GlobalLogic's recruitment and development scheme. DEI is also evolving steadily with talents acquired through global M&A playing an active role. We are making steady progress here. As for the improvement of engagement, as of FY 2022, a 68% engagement score, that was the target set. We were able to achieve the target set in the Mid-term Management Plan ahead of schedule, and it is now up to 68%. Going forward, we will aim for higher level and with One Hitachi in mind. Next, I will discuss progress on contributing to a decarbonized society. Hitachi aims to be carbon neutral by FY 2030. We are making progress at a pace far exceeding the target set in the Mid-term Management Plan 2024 and expect to achieve a 64% reduction compared to 50% reduction target for 2024. We aim to contribute to the decarbonization not only within Hitachi Group, but also the carbonization of our customers as well through our energy steel pipe, energy conservation, and electrification businesses. This is expected to exceed the target set in Mid-term Management Plan 2024 of 100 million tons of CO2 emission reduction contribution per year, and we expect to reduce approximately 120 million tons of CO2 emission. We are also working actively to contribute to the circular economy. On the left-hand side of this slide, you see some of the activities within Hitachi Group to promote circular economy. We are making steady progress towards the goals. We are also promoting various activities from the perspective of contributing to society as a whole. We established the Circular Economy Collaboration Lab with AIST last October. We are promoting rule formation and social implementation in collaboration with global research institutions. For example, Hitachi GLS has the vacuum cleaners, for example, and also the compressor from Hitachi Global Air Power, are just a few examples of our efforts on this slide, which contribute to solving the social issues and through products and solutions in all of our businesses. Lastly, I'd like to talk a little bit about the situation regarding the strengthening of governance. The composition of our Board of Directors is rich in diversity. We are constantly engaged in lively and diverse discussions on management reform. In particular, highly effective measures for monitoring the progress of the Mid-term Management Plan, the deliberation of investment and loan proposals, and CEO succession plan, are formulated and promoted based upon discussions among the Board members. Last year, in recognition of these activities, we received the Grand Prix of the Corporate Governance of the Year 2022 award from the Japan Association of Corporate Directors. As announced the day before yesterday, we are also revising the executive compensation system linked to the enhancement of enterprise value. We will continue to strive to improve our corporate value by evolving our governance as a global company centered on our Board of Directors. This is going to be the last page of my presentation. Today, I gave an overview of the progress of the Mid-term Management Plan 2024 under the theme of modal change from the past phase of business portfolio reform to sustainable growth. We are planning to organize a Hitachi Investor Day 2023 on the 13th of June. I and four Executive Vice Presidents will explain the businesses more in detail. Green, Digital, Connective. Specifically, we will talk about them. We intend to show how each sector is expanding its business with One Hitachi, using Lumada's customer co-creation framework in their respective fields, under the three transformational trends of Green, Digital, and Connective. We look forward to actively discussing with you and investors at this forum. We hope you will join us. This concludes my explanation of the progress of the Mid-term Management Plan 2024. Thank you very much for your kind attention. Mr. Kojima, thank you very much. At this moment, we would like to start questions and answers. Those of you with questions, please use the hand raise button on the Zoom screen. Among those who have raised their hands, we will call the name. Once your name is called, please unmute, state your name and affiliation before asking your questions. If you no longer wish to ask questions, please deactivate the hand raise button. The video of the questioner will not be shown according to the setup today. We will take questions first from the Japanese channel and then onto the English channel. We have members of the press, institutional investors, as well as analysts. We would like to take questions from all of you. Let's start taking questions from those of you on the Japanese channel. Those of you with questions, please press the hand raise button. I see a hand. Please unmute and state your question. I have two questions. For the over-consolidated business plan, I have a question regarding the revenue plan. All three main segments, the increase in revenue planned seems to be low. 3%, 4%, 1% increase in revenue for the three sectors, respectively. In the prior year, it was 11%, 12%, quite high. Planned revenue increase seems to be lower than what I expected. What are the reasons, if you could share your thoughts, as well as the background? Overall, is demand slackening? Is that what is expected? Or Hitachi's room for growth or room for share increases that are starting to be limited. What are the reasons? What are the reasons, and why are you planning a smaller revenue increase for the three main sectors? Kojima-san talked about 5%-7% growth for MMP. I think it was one of the slides, a 5%-7% growth. Compared to that, revenue increase planned is rather low. In a three-year plan, the concern is that growth rate will start to taper over the three-year span. Is that a relevant and correct thinking? That's my first question. My second question is as follows. About Hitachi Energy, order intake is growing very rapidly. According to the revenue plan, down 4%. That is what is planned. Kawamura-san earlier talked about the gap, I believe. If you could please elaborate on the details as to why a revenue decrease is planned, and when do you think revenue will start picking up once again, given that order intake is growing? Together with that, PMI cost, JPY 28.7 billion was the number for the new fiscal year. Why the PMI cost for Hitachi Energy is so high? What are the activities, and do such a large number are required going forward? With respect to Hitachi Energy, if you could please elaborate on that as well. Thank you for the questions. Kawamura will answer. Regarding MMP, Kojima will respond. For detailed numbers, Kato will supplement. First, FY 2023, our revenue increase that is planned seems to be slow. That was what was pointed out in the question. In terms of our earnings, given the portfolio composition, I don't think our revenue earning capability has gone down. It's because of the external environment. I think we are being conservative in budgeting. Well, the share market is doing well, real economy is still struggling. Well, Forex, if we look at Forex, I think today. Yen is a little cheaper, JPY 134 to the dollar. It is still uncertain. BOJ monetary policy is as considered to change, it is expected to change. What will happen to the interest rate and global environment economy because of security issues is still unstable. In the second half and onward, our assumption is that there will be increased uncertainties. It is not that the portfolio earnings capability is down. We are reflecting largely the macroeconomic environment that we are expecting and thus, these numbers. With respect to Hitachi Energy, as I mentioned earlier, to be a little more specific, FY 2022 March-end, orders were around JPY 2.7 trillion. A year ago, JPY 1.7 trillion. In just a span of one year, order build-up of JPY 1 trillion, which is amazing. As Kojima-san earlier said, in the energy area, there has been tailwind, so the business is very robust. Actually, orders once received, have to be manufactured. Because of the pandemic, in the last three years, there has been employee furlough and CapEx had to shrink. Compared to order intake growth, the manufacturing capacity development is somewhat delayed. Specifically, as of the end of September 2022, JPY 2.7 trillion of orders. In FY 2023, what percent of the orders would be reflected? 50%. That will be reflected in our revenue. A year ago, the rate was 55%-57%. Because order is growing so fast, manufacturing is not catching up, so down 5%. In FY 2025, somewhere around 30%, it will be down to 30%. There is time lag between order intake and manufacturing, that is kicking in a major way. For Hitachi Energy, we are planning to increase CapEx. We have instructed CapEx be increased. Once that is done, the reflection rate of 51% to profit and loss, the number in FY 2023, that will start to go up. Year-on-year negative growth will be alleviated somewhat. PMI cost is very high, you pointed out, and certainly on page 13, JPY 28.7 billion is being planned. Actually, this is largely IT integration cost. By the end of FY 2022, IT system migration from the old ABB system to a new system, that migration was supposed to be concluded, but there has been delays. FY 2023, it is still continuing. This migration cost is pretty large. Majority is IT migration costs. In the process of migration, ABB's old system has to be used, and usage fees have to be paid to ABB. That is because of TSA, transitional service agreement, and fees must be paid. According to our plan, migration will end in FY 2023, this cost will go down quite sharply thereafter. That would be all for me. If Kojima-san has additional comments. Well, thank you very much for the questions. 5%-7% growth are planned in the new MMP. As I said in my presentation, FY 2021, JPY 6.7 trillion. That will be the number for the consolidated businesses that FY 2022, this was very low, JPY 7.6 trillion, largely because of Forex impact. It was growing quite substantially. FY 2024 MMP, in light of that, because FY 2022 number was large, the overall planned number is somewhat lower. FY 2023 revenue target may appear very conservative, I agree. FY 2023, how will the economy evolve? We cannot forecast how it will evolve. We are being quite conservative as to the economic outlook. With respect to Hitachi Energy, if I may add, as Komura-san earlier said, from order backlog to revenue, that ratio is around 50%. FY 2023 revenue is already covered by orders already taken. In that regard, we are being extremely conservative. On the other hand, if we are to raise profitability, that is very important. Low-margin projects, we do not want to blindly go after low-margin projects. We would like to be very selective in choosing projects. Given the current business environment, we are able to choose projects. Rather than going after revenue blindly, we would like to make sure to raise profitability. That is what we would like to focus on. As I said earlier I think the revenue, in actuality, will be larger than this number. With respect to PMI, as Kawamura-san explained, in order to raise productivity, we made a major shift in our IT systems and such new systems are being deployed in different countries. There are several countries which are struggling, and that is where the delay is. We would like to completely conclude a migration so that there will be no more costs incurred next fiscal year and onwards. That is all from me. Kato-san, no further comments about numbers? No. Thank you. Thank you very much. Next, Mr. Yasui, please unmute and please ask your questions. UBS Securities, my name is Yasui. Can you hear me? Yes. Please go ahead. Thank you very much. I have three questions. To Mr. Kojima, on page 14, the shareholder return ratio and amount is larger, but the value creation is not changed. The idea behind the shareholder return has changed? That is my first question. The second question, on page 10, the growth area. North America is expected to grow. It drives growth. But now, in the Mid-term Management Plan, there are some areas that are doing quite well, and the other areas that are not performing so well. Could you please give us more details? Number three is about Astemo. Honda's holding has increased, and Hitachi portion or the holding will go down to zero in the future? Please give us some more details about the future holding of Astemo. Thank you very much. First of all, I would like to respond. First of all, shareholder return. Idea behind the shareholder return, maybe I can say that we changed our idea about the shareholder returns. This is also related to Hitachi Astemo, but so far, we conducted a structural reform of the business and we reshuffled the businesses. We sold some businesses. The huge amount of cash and the inflow was realized as a result of that. We were supposed to return those benefits to the shareholders. However, we decided to use it for the reshuffling of the business to acquire new assets, to change Hitachi significantly. As a result, that will enhance the value that we can create as Hitachi to be returned to the shareholders. That is the idea, and I believe that we won your understanding on this point. As I mentioned today, we are changing our mode towards more growth. Now, when we have a cash inflow, first of all, we have to return such cash to the shareholders. Core free cash flow, one half of that, 50%, or if the net income increases because of the one-time gain from the sale of the assets, then that gain shall also be distributed to the shareholders. That is the idea. In terms of net income, JPY 500 billion is our yardmark, and the 50% TSR. That means JPY 250 billion. That's going to be a little less than JPY 2,250 billion, meaning that the additional JPY 100 billion is to be used for the share buyback. When we divest the business, then we have the incoming cash, and that will also be used for the distribution of the return to the shareholders. That is the idea we applied. The 50% of the net income, we need to consider that as well from the viewpoint of shareholders. That is the idea behind what I have written on the side. The second question is about the growth of North American business. There, in North America, the businesses are doing quite well because GlobalLogic, Hitachi Energy, and the Railway business, these businesses are doing quite well in North America, and that led to the significant amount of the orders. GlobalLogic is growing significantly. However, at the same time, the industrial-related businesses, that's what we'd like to accelerate furthermore. Hitachi Global Air Power, JRA. We have these assets as well and augmenting those assets. Together with GlobalLogic, we'd like to generate more synergy in these areas. We would like to further accelerate these businesses as well. The third question is about the holding of Hitachi Astemo. Well, it's going to be a long story, first of all, it used to be the auto-related business within Hitachi. We used to have a business division. That used to be one business unit within Hitachi. We knew that it's not going to be larger, and the size or scale was important. We put this company together with another company, and they have created the independent company, and we made it larger and getting closer to the mega supplier in order to survive the business. They merged with the three affiliated companies of Honda. This was consolidated because we tried to make this larger while separating this business in the future. The challenge was we needed to do the PMI, merging four different companies into one, which was quite challenging. Hitachi needed to put these four companies into one with our responsibility. That's the way we conducted a merger and the integration. This industry is moving quite rapidly. The car OEM, we need to capture what they are thinking about the business. As an established supplier, we need to create and establish a deep relationship with automotive OEM. In that sense, it is better for Honda to take an initiative for this company. In order to achieve the IPO in the future, we also invited the Chubu and the Honda and the Hitachi. We tried to maintain the good balance and allow Honda to have more control over this business. The EV market is moving quite rapidly, and in order to win the competition in this highly competitive EV market, we needed to augment this company. Hitachi's holding, it is not that we are going to reduce our holding ratio rapidly. We would like to make sure together with JIP and Hitachi and our partners to keep the strengths of this Hitachi Astemo business until IPO is possible. Thank you very much. Thank you. Next, Hiroe-san, please unmute and start your questions. This is Hiroe speaking, from Nikkei. Can you hear me? Yes. Thank you. Hitachi Astemo is deconsolidated. You have three sector structure. Is this the end game, or do you plan to add or subtract anything? Are you planning to add any more? You have a number of global competitors. With the structure in place, how do you go about differentiating yourself against competition? MMP presentation, page 21. JPY 960 billion is the EBITDA plan. There is a major increase. How are you going to realize that? In order to meet the targets under MMP 2024, I'm sure there are a number of risks that you have to overcome. What are the risks? Semiconductor or geopolitical risks? If you could please comment on that. Sorry for asking a lot of questions. Hiroe-san, thank you for your questions. Allow me to answer your questions. Three sector structure or framework, the so-called consolidated businesses. What is lacking? I don't think there's anything lacking in any major ways. With this framework in place, we would like to utilize assets, build the Lumada business, and expand our business globally. As we grow, we may require more digital personnel. In order to strengthen each of the businesses, investment may be called for. For example, in terms of GlobalLogic, Romania. Well, they have acquired companies through bolt-on acquisitions, such moves may be made. But very large scale M&A to acquire large assets during MMP 2024, we're not thinking of having such very large acquisitions. How to differentiate ourselves against competition, that was part of the question. Well, actually, around the globe, Hitachi Energy, Railway, GlobalLogic, Sullair, we now have a number of assets in place for us. As we conduct our business activities utilizing these assets with IT, OT, and products, we can provide total support to our customers. There are not a lot of players like us who can do so. The more we draw on our strength, I think the more we will be able to differentiate ourselves against competition. For example, customers' DX requirement or greening requirements. On a global basis, we are getting such comprehensive inquiries, DX, GX needs are arising. We are an IT, OT product player providing all of these to meet such customer needs, and that's how we would like to differentiate. You also asked about profitability. FY 2024, the target EBITDA is JPY 960 billion. The hurdle is pretty high, you mentioned. What becomes basically important is for Lumada to generate profit and to grow solidly. As you can see, I'm sure, at the bottom, the Lumada portion, we're trying to lift it up by JPY 90 billion or so. In that regard JPY 0.9, that's about JPY 900 billion. JPY 900 billion will come through Lumada's growth, the remainder of JPY 60 billion will come from Hitachi Energy's green business Railway. By so doing, we will achieve JPY 960 billion. With Lumada's achievement of JPY 900 billion, I think we will be able to achieve JPY 960 billion in total. What are the risks that we're seeing? That was another question that you asked. Well, there are so many new risks arising all the time. What is the biggest risk for us, FY 2023? Without a doubt, risk of recession. That's what we're looking at. There are issues with banks, as well as interest rates here in Japan as well. Somewhere, exit strategies, I'm sure, potentially will be discussed with BOJ, such changes, will it for the better, will it for the worse? Both will happen, but no doubt there will be changes continuing to happen. How can we minimize and mitigate risks for us? That's the most crucial point. Recession risk in FY 2023, if that's going to be prolonged, it will be the greatest risk. If it continues into FY 2024, it will affect our Mid-term Management Plan 2024. Through various measures, we would like to mitigate such recession risks. That would be all. Thank you. Thank you very much. Next, Mr. Okada, please unmute and ask your questions, please. Yomiuri Shimbun, my name is Okada. Thank you very much. This is related to previous question about the risk. Recession concern is what you mentioned. Specifically, what kind of background are you referring to when you talk about the recession risk? That risk factor, which business line is more susceptible to such risk of a recession? Another question from a different point of view, Railway-related business. You talked about the acquisition of the business of Thales. I believe it was on the target year used to be 2022, but it has been delayed. Could you please explain about that? In the Mid-term Management Plan 2024, by 2024, you are trying to achieve the record high revenue for the Railway business. Does this delay have any impact on that target? Thank you very much. This is Kamura. I'd like to respond to the first question about the risks. Thales and the Mid-term Management Plan 2024 related questions will be answered by President Kojima. First of all, risk factors, as was mentioned at the beginning. First of all, the recession and also the interest rate is the related factor. The balance sheet was explained in my presentation. Interest-bearing debt of this company exceeds JPY 2 trillion. If the interest rate goes up by 1%, it will be the impact of JPY 20 billion. Interest rate is what we are focusing upon. The USD rate is coming up, we have been able to absorb that. In the future, the JPY interest rate accounts for 70% of our borrowing, that is what we are looking at closely. Second point, I mentioned about this in my presentation, we are procuring and purchasing various materials, the prices are rising sharply. For example, semiconductor-related and also electrical steel sheets and the copper wire harness and the automotive steel sheet. In the past few years, the price today is three to four times higher than what it used to be, and the power price is also coming up sharply. We are discussing among ourselves as to how to cope with this. Back in 2022, our procurement cost, 40%-50% of those, the price increase, cost increase, has been passed through to the customers pricing through negotiation. We hope to raise this ratio of pass-through up to 90%, possibly ideally 100%. Of course, we have to negotiate and talk with customers. To what extent we can shift the cost increase to the selling price increase, that is what we need to look at. The interest rate and inflationary response, to what extent we can do this? The price pass-through is the ultimate measure. These two are what we are looking at closely, and particularly among the business lines, the asset bases are large in those areas, the impact will be larger. Interest rate increase will impact some of those businesses because our WACC will increase and return expected will be higher. That's going to be a risk. In that sense, Hitachi Energy and Railway business, they have the asset of more than JPY 1 trillion, so the impact for these business lines will be particularly big. That's my response to the first part of your question. Next, I will ask our President, Keiji Kojima, to talk about the reason behind the delay of the Thales acquisition, and the impact on the outcome. Thank you very much, Ms. Okada, for your questions. Thales, there are two EU authorities, the regulators, we are currently discussing with them. This is related to anti-competitive concerns and the negotiation with the two regulators. Originally, EU and U.K., it used to be EU that was the center of the issue. EU, there was not much overlapping in the business, we were not concerned about that. Once the situation became clear, EU and also U.K. There are two phases, phase 1 and phase 2 in the anti-competitive or the anti-monopoly exercise. The phase 1 is over quite quickly. Phase 2 requires a lot of work, like submission of documentation and others, and it's going to take time. It will have started in the U.K., it is taking time. I believe that the situation will wind down in the EU, but the issue is U.K. and the phase 2 response in the U.K. that will last until September this year. That is the reason for the slow progress. Particularly towards FY 2024, including FY 2024, what is the impact of that delay? If we can complete this by September is the target that we are looking at in making the plan for 2023, 2024. If we didn't do this by September, it will be okay. This is the carve-out from Thales. When we talked about Hitachi Energy, I talked about the IT system, and others. Carve-out has the risk of its own. We need to take various measures. Yes, if it is a totally standalone business and start the PMI, it's going to be easier. Now it's been delayed. We would like to enhance the carve-out process, and that is what Hitachi Energy and Thales are talking about, to facilitate the PMI process. There is a delay, but that means we have time to prepare for that. We would like to make sure that this doesn't have much impact on 2024. The Thales portion, Mr. Kato, could you please talk a little bit about Thales? Yes. First of all, the first question related to interest rate. On page 20 of the financial results, for 2023, the interest and the numbers are shown here, 2022 to 2023, JPY 9 billion, that is the increase that we expect. The domestic borrowing is based upon fixed rate, and the foreign currency is also based upon fixed rate. Even if our market rate increases, it doesn't mean that our borrowing will be subjected to certain increase in the interest rate. Thank you very much for your response. Thank you. Next, Oyata, please unmute and start your questions, please. Yes, Oyata, JP Morgan speaking. I have three questions as well. Question number one, on page 17 of the earnings presentation about the Lumada business, there were a lot of numbers that are very helpful, but if you could please provide commentary as to how the numbers line up over time. At top left, year-over-year, 42% increase. In the first half, there was a substantial growth. If you look at the fourth quarter only, what was the growth? According to my quick calculation, it must be around 20%. Is that correct? This fiscal year, plus 16%. What is the significance of 16%? Is that because of the impact from the business cycle and perhaps the hurdle is becoming higher? It's no longer a business that can grow another 20%, 30%. What is the nuance behind this number 16%? My second question, with respect to Thales, that was discussed earlier. This fiscal year, Railway adjusted EBITDA. Last year was 5.5%, but this year it's to be down to 3.7%. What's the reason behind that? I would like to know. Thales, according to the explanation, on a consolidated basis, I think the Thales number is based on consolidation consideration. Revenue and adjusted EBITDA for Thales this year, what would be the numbers? Mr. Kojima talked about PMI. Is it the cost of depreciation, amortization? Is it IT migration cost? It seems that some costs are reflected, so if you could give numbers around that as well. That's the second question. I'm sorry for being lengthy, but my question number three is as follows. MMP adjusted EBITDA margin is 12%, that remains unchanged. Last year it was 9.5%, this year on a consolidated basis, 10.2%. From that level, next year 12%. A major jump up for next fiscal year. Apparently almost a disruptive growth. Where does that confidence come from? Now if we look at the businesses, in which business areas toward our next fiscal year, do you see a substantial growth? I'm sure you will be providing details on the IR day, but if you could share your thoughts on that today as well. Thank you for the questions. Lumada's fourth quarter number, can we pull the number up? I would like to talk about FY 2022 and FY 2023. Tomomi Kato speaking. Thank you for the question. About the fiscal year 2022, 42% growth, very high growth, was enjoyed by Lumada. Lumada itself grew, but there were two tailwinds or two factors behind this. One was Forex. Because of the cheap yen, it had positive impact. GlobalLogic was another factor. FY 2021 July, GlobalLogic was acquired, there was positive impact from GlobalLogic in the one quarter for FY 2022, that was another tailwind. FY 2023, 16%. It may appear like a major reduction, but those factors no longer contribute. We believe that Lumada will still continue to grow quite robustly. Thales, what will be the numbers for the second half? In terms of the rail business, as you rightly pointed out, profitability will be down by 0.2 percentage points from 2022 to 2023. That's because of Thales integration cost. The Thales business that's carved out will be brought to Hitachi. As was mentioned earlier, because of the timing delay, Thales' carve-out work is making headway, which is a positive for us. There's IT integration costs as well. PMI cost includes IT migration, IT integration costs, there will be a lump sum cost in FY 2023 from that. If we exclude that from FY 2022 to 2023, adjusted EBITDA ratio will go up by 0.5 or 0.6 percentage points. Excluding Thales, I think EBITDA ratio will be somewhere around 7%. Just to supplement from Kawamura, just like Hitachi Energy, Railway has a lot of order backlogs. Hitachi Energy, actually over JPY 4 trillion, double that of Hitachi Energy. How will that be reflected in profit and loss? In Hitachi Energy, the lead time is 3 years. Railway is a longer-term business, it will start to be reflected in profit and loss starting from FY 2026 and onward. Half of their backlog will take more than 3 years, the lead time is very long, that is affecting the Railway business. Just to add to the comments made. May I turn to Kojima-san about MMP disruptive growth planned. FY 2023, in terms of profits, there is some drag. There are some transient factors that are negative. If we exclude them, somewhere around 11% can be achieved. Considering that number, I don't think the hurdle is not going to be too high. If we can improve the ratio by one percentage point every year, we will be able to achieve the target. FY 2023, we're being quite conservative, as was mentioned. FY 2025, we need to see business recovery back to normal. If that assumption pans out, I think the target set under Mid-term Management Plan 2024 is achievable. Kato-san, anything to add? No, I don't think so. Thank you. Thank you for the questions. Just one clarification. What's in this fiscal year's plan? Transient factor pushing down adjusted EBITDA number. Hitachi Energy, PMI cost, Thales is going to be consolidated, and Thales PMI related costs, those are the main cost items pushing down adjusted EBITDA? Correct. DSS structural reform. Structural reform expense that will hit adjusted EBITDA. By FY 2024, we would like to reap the benefits of such structural reform in DSS. Thank you. Thank you very much. Next, Mr. Bulow, please unmute and ask a question. Thank you very much. My name is Bulow from Jefferies Securities. Can you hear me? Yes? You talked about the Hitachi High-Tech, which is measurement and analysis, and the 30% reduction in the order in the first quarter. The margin is down for the incoming businesses. Is that because of the adjustment of the business? When do you expect the bottoming out of this business? Probably it's going to pick up in the second half of the year. If you have any idea, please share your idea with me. Appreciate it. Thank you very much for your question. I, Kojima, would like to respond to that. Hitachi High-Tech main business, there are two pillars of the businesses. One is semiconductor and the evaluation and measurement equipment. The second is together with Roche of Switzerland, we are working together with them, which is the analytical equipment. The latter will remain solid in 2023, 2024. What will be affected by the market and the economy is the semiconductor-related business, semiconductor manufacturing, and the inspection equipment. Looking at that particular market and customer demand, 2023, the business will slow down because the players will refrain from making the active CapEx investment. However, the companies are indicating their strengths in the investment activities in 2024. By starting from the second half of 2023, are we going to see the bottoming out? Personally, in my view, 2023, the companies will refrain from making investment. Starting from fiscal 2024, they will increase their investment. That is how we look at the market. If I may, I'd like to ask you another question. Adjusted EBITDA and the company-wide elimination and fiscal 2022 guidance. The JPY 92 billion, that was the amount, I believe, 92, but actually it was the JPY 46 billion. In the new guidance, it is the JPY 1 billion for the elimination. IT platform investment is not included here, or the risk buffers are not included. Could you please explain a little more about this item? Thank you very much. I'd like to explain. For fiscal 2023, slide 15 shows that minus JPY 16 billion that is written here, which is the JPY 10 billion higher than last year. It is because strategic investment, we are reducing the strategic investment. That is the reason for the company items and elimination. This year, 2023, as we mentioned, it is very difficult to foresee what's going to happen in the economy this year. About JPY 20 billion, we introduced the buffer over JPY 20 billion. That is the idea behind these numbers. The JPY 20 billion buffer outside of the operation, are there any buffers which are within the scope of the business? Actually, this is about the JPY 20 billion, which is a part of the business operation. How about the non-operating aspect? At each sector, they are looking at risk of their own sector areas. On a company-wide basis, we have not introduced anything specific or special. Understood. Thank you very much. Thank you. We would like to take questions from those of you on the English channel. Please use the hand raise button if you have questions. Any questions from those of you on the English channel? Anyone with questions on the English channel, please use the raise hand button. I do not see any hand on the English channel, so we would like to come back to the Japanese channel. Nakajima, please unmute and state your questions. Can you hear me? Yes, we can. My name is Nakajima from Kyodo. I have a question regarding performance for FY 2022. For three year in a row, you have achieved record highs. For Railway and Astemo, why are those businesses growing? What are the reasons? What kind of customers, what kind of businesses were successful? What strategies panned out? Earlier you talked about interest rates and Forex, that these could turn into risks for you going forward. Now that you have a new structure in place and BOJ is under a new management. Under Governor Kuroda, low interest rates continued for the past decade. With the new governor in place, monetary policy is expected to change. What do you expect of BOJ in terms of its monetary policy? What are your expectations? Regarding Astemo and Rail business, Kamura will respond. What is our hope and expectation for BOJ, I would like to turn to Kojima for an answer for that. Regarding our Railway business, FY 2022, there were very strong orders, large projects were acquired. Canada, Ontario, Toronto, financial sector, the train system, JPY 1 trillion order was received in Europe, in Italy and other places we were able to acquire orders. Rather than control and a signaling system, it was the rolling stock orders that came in, which were large. Rolling stock and a signaling system control, what's the profit level? Without a rolling stock business, we won't be able to have enough signaling and control system business. We need to take rolling stock businesses and extend. In FY 2022, we had large orders for rolling stock. Regarding Astemo, last fiscal year, their business was very bad in FY 2021, it appears that there was recovery in FY 2022. The major reason behind that is with the pandemic under control, although semiconductor shortage continues, for the GM, Nissan, these OEM manufacturers, they are increasing car supplies and because of that, parts are being sold increasingly. There's recovery in car OEM manufacturers, and that is positively reflected in Astemo's recovery. I would like to turn to Kojima-san for a comment on BOJ. Nakajima-san, thank you for your question. What we would like to request is for BOJ to have good communication with the market, that BOJ is transparent in communicating with the market so that we know what the BOJ message is. Inclusive of exit, I'm sure there are lots of discussions to be had. We want the BOJ to have good communication with the market so that we can be pretty well prepared. We don't want any surprises coming from BOJ, and we'd appreciate having not such surprises from the BOJ. Thank you. Next, Mr. Harada. Mr. Harada, please unmute and start your questions. Thank you very much. This is Harada. I have three questions. First of all, starting from April this year, you put the GlobalLogic as your sub-segment and Haraguchi-san is in charge of supervising that. The GlobalLogic used to be within the segment, it was not easy to see separately the GlobalLogic. I hope it's going to be more disclosure about the business and the performance related to GlobalLogic. I hope it's going to be changed, and I would like to welcome your comments on this point. The second question. Page 15 of the mid-term management and the material, the bottom line stabilization and the cash generation, adjusted EBITDA and the free cash flow. These are not directly related to the accounting results, there is a ongoing shuffling of the business, this is how you put these in this way. Ultimately, it's going to be included into the regular financial indicators, like the operating profit and others. Could you please explain about the background of this presentation? Thank you very much. First of all, GlobalLogic and the disclosure, Mr. Kawamura will respond to that. The Mid-term Management Plan, page 15, President Kojima will respond to that. First of all, GlobalLogic. Taniguchi-san is in Silicon Valley, the synergy, how to generate synergy between Hitachi and GlobalLogic, that's what the team is working on. We have no intention to change the way we disclose the material. For example, page 17 of today's material, please look at this page. Here, bottom right, you see a bar which shows three different segments and the ratio. For example, Digital Systems & Services and Green Energy & Mobility in the middle and right-hand side, the Connective Industries. Green Energy & Mobility portion is smaller, Hitachi Energy and railways and GlobalLogic collaboration is what we are looking at, how to generate the synergy. That's what Mr. Taniguchi is working on. When this portion becomes larger, then that leads to the question as to how we should handle the disclosure. Mr. Taniguchi's segment, how to grow it is the challenge. Along with that, we'd like to consider the further disclosure. Mr. Kojima, page 15 of the Mid-term Management Plan The, please. Thank you very much for your question. The stabilization of the bottom line and the cash, these two are what I talked about, and the core free cash flow and the bottom line, with these two, our intention is to make this clear so that you understand the shareholder and the value. The adjusted EBITDA is the indicator we are using, and also net income and the core free cash flow. We are trying to introduce the indicator to connect all these three in order to deepen your understanding. That's our idea. The ratio between net income and the core free cash flow or the adjusted EBITDA. Among these factors, we like to connect them, and when something happens to EBITDA, how the bottom line will move, and then that also is related to the cash flow. With that in mind, we created this presentation. During the reshuffling of the business, it is ongoing, but it is not that we keep this, because the businesses are changing. We would like to create the business in an organic manner. The EBITDA, the core free cash flow, and the net income, our target is to make this presentation easy to understand. Understood. Thank you very much. Also, one last point. Astemo, you also mentioned about Astemo and how big was it? You're going to sell your holding in September and valuation will change then. It's going to be a valuation loss or the valuation gain. I think it's going to be fixed in September. What is your outlook? Yes, Kato-san will respond to that. As for impairment, basically, we do not disclose the impairment. I appreciate your understanding. This is impairment, but this is non-cash transaction, it doesn't have any tangible impact on the business. That's our understanding. Understood. There will be no disclosure even after the sale? What do you mean by sale? I'm talking about the sale of the holding in Astemo. Will there be any changes or the valuation loss or valuation profit? Yes. Kamura will respond to that. When the three companies are integrated into one, there was a corporate value calculated back then, but the Astemo business was not sufficient so far. The 40%, 40%, the 20%, when the change of the holding took place, that resulted in change of the valuation. Based upon that changed valuation of the 40%, 40%, 20%, the valuation was calculated based upon that. Naturally, the valuation changed. The impairment, as Kato-san mentioned, this is not the cash item. When valuation is calculated, when this is turned into present value, this is not included in the calculation. The major reason is over the past two years, the performance of Astemo pushed down the valuation of Astemo. One additional point from Kato, impairment, this was not in the fourth quarter. This was incurred in the second quarter. Understood. Thank you very much. This answers my question. Thank you very much. Thank you. The time to close is fast approaching, those of you raising a hand, Hirakawa-san, Yoshizumi-san, in that order, we will be taking questions. Then I'll close the questions and answers. I look forward to your cooperation. First, Hirakawa-san, please unmute and start your questions. Thank you. I'm Hirakawa from BofA Securities. Two questions. Question number one, page 2022, FY 2022 order number is given. For the three segments, FY 2023, given the inquiries that you are receiving, what will be the numbers, directions? Hitachi Energy, it's a sub-segment, but if you could also share your plan and thoughts on Hitachi Energy for FY 2023 as well. My second question has to do with core free cash flow. On March FY 2023, the number was JPY 270 billion, but it was overachieved at JPY 400 billion. Why? Core free cash flow plan is changed to JPY 1.2 trillion from JPY 300 billion this term to close to JPY 500 billion next term. What are the measures to improve to such an extent? Core free cash flow close to JPY 500 billion, how are you going to bring the number to that level? My last question, well, that may overlap with earlier questions. Hitachi's Lumada IT/OT products, with the three combined, you are differentiating yourself to grow. I understand that. On the other hand, in what forms and shapes are you differentiating? If they can be understood better by the market, your valuation perhaps will be closer to that of Accenture. With Hitachi's strength, if you have examples of winning against your competition, I would like to know. To respond, do we have the FY 2023 order intake number? Kato-san will answer that. With respect to orders, let me briefly answer. FY 2023, we have not been able to collect all the orders yet, but at the base, things are very well. Digital Systems & Services, page 22, I think the business will continue to be robust. FY 2022 saw forex impact. For FY 2023, forex impact will decline, but basically it's the same. Green Energy & Mobility, 53%. Hitachi Energy and Railway had a lot of orders, so close to 60%. For this year, it could be affected by large projects, especially for Railway business. I don't think we'll be having as high a level as last year. Connective Industries, FY 2022, it was flat year-on-year. For FY 2023, the expectation is that it will increase. Core free cash flow, Kameda-san will answer. Your third question on Lumada, Kojima will answer. What you pointed out, we are very much aware of FY 2023, FY 2024. With a two-year program, we're going to resolve the cash issue. More specifically, we will have to work on the revenue side and the cost side. On the revenue side, relatively speaking, there are some businesses where return is not enough. We need to restructure them quite stringently so that return can be improved. We need to raise the margin of such businesses. We need to work on improving the returns on some of those businesses. On the cost side, as has been discussed, Astemo will be deconsolidated. It's going to have a large impact. We had a revenue of JPY 10 trillion or over, but with reorganization, it's going to be down to JPY 8 trillion, 20% reduction. Inclusive of corporate functions, we had a structure fit for JPY 10 trillion. There's going to be 20% reduction in revenue. It means that we have to reduce cost by 20%. On the cost side, we have to make efforts to generate cash. On both the revenue and the cost sides, we need to work hard to meet the target, although the target is pretty high. On Lumada, Kojima-san will answer. Just to add some comments on core free cash flow. When it comes to large projects, we get a payment based on milestones. We are having contracts and taking actions vis-a-vis customers so that we can get revenue and profit quite solidly. I think that kind of thinking has started to take root. This year, CapEx is increasing. But we would like to perform so that we can overachieve the target. FY 2024, as I said earlier, adjusted EBITDA, how can we increase conversion rate so that we can turn adjusted EBITDA into free cash flow? That is very crucial. Well, so far internally, we have not been too conscious of these metrics, trying to translate profit into cash flow. That part was rather weak, and we have strengthened that quite considerably. With such efforts, we would like to achieve JPY 1.2 trillion. IT, OT products, are we able to differentiate with the three combined, and are we winning? Of course, we would like to share such success examples, and we would like to do that on the IR day. But some customers do not like their names to be mentioned. Some of them say that their names should not be mentioned. We would like to find customers whose names can be shared, and hopefully we can find some customers who are happy to share their stories themselves. With that, I hope we can develop a better understanding on your part. Thank you. Thank you very much. Now we'd like to welcome one last question today, Mr. Yoshizumi, please. SMBC Nikko, my name is Yoshizumi. Thank you very much for your presentation. I would like to ask two questions. First of all, business portfolio. You transformed the business portfolio, but you already completed that. You will shift your focus upon sustainable growth of the business. The Lumada profit margin profitability, how would you like to push up the profitability of Lumada? On page 17 of the financial results, I have numbers, but compared to the revenue growth, the profit growth is about 20%. Because the GP ratio is not so high for Lumada business, or the SG&A is high, how about the cost structure of Lumada? What is the current status of Lumada business in this regard? Please explain. Also, would you like to strengthen the Lumada business or the company-wide elimination and the strategic cost for two consecutive years, those amounts were not used fully. You would like to use this much amount, but you were not able to use them, or because of the market condition, you were not able to use them. It is difficult to see from outside what is happening. The Lumada profitability enhancement is important. I would like you to explain on that point. That's question number one. Question number two is about the new year guidance for the fiscal 2023 and the Connective Industries. I'd like to ask you. The adjusted profit, there are several points. Hitachi High-Tech. The semiconductor manufacturing equipment environment or the market is very tough, the revenue and the profit plan is solid because of the order backlog you already captured. The difficult market condition, despite of the market difficulty, you have the certainty that you will be able to achieve this in growth. Industrial digital, in the fourth quarter, it was doing quite well. Is this because of the contribution by Lumada? What is the current status? Also industrial products. The non-mass-produced products and the mass-produced product, it seems that the order condition is quite good. Could you please explain about the background of this business? Please explain. Thank you very much for the questions. The first part, Lumada part, I will ask President Kojima to talk about the Lumada business. Yes, thank you very much for your question. Lumada profitability from a mid- to long-term perspective, I'd like to explain. Lumada profit margin profitability is determined by the first customer. They have a new case, inviting new customer, and it can be used for their use case. Development cost is incurred for that. However, second round, the third round, similar transactions and deals go to the customers. Initial investment cost or the development cost will be lighter, lower. How to scale the business, that is the key to success. The number of use cases, the number of solutions is quite important in that sense. We need to make good use of that to enhance the scalability that will lead to higher profitability. That's the good method to promote. Secondly, particularly digital engineering, system integration, for these works and areas, people. This is a labor-intensive area. It requires people. Number of headcount is almost equivalent to revenue. Mid- to long-term perspective, how to raise the profitability of that part of the business, that is another important area. The key here is how to use AI effectively. System integration, low-code, no-code is possible, and to reduce the use of all the creation of software and reduce the headcount to enhance the profitability, profit margin. That's what we'd like to pursue. On top of that, one step ahead of that, digital engineering, something similar to consultation. That's what we'd like to introduce more AI. This is the area. It is not that we need more people to scale the business, but we need to grow out of that. That is the key to enhance revenue without increasing the headcount. Together with R&D, that's exactly where we are focusing upon. Thank you very much. Yes. The 2023 outlook and your question about the outlook 2023 will be answered by Kato-san. Hitachi High-Tech, as you see on the slide, 2023 revenue is equivalent to that level of 2022. As for the breakdown, the ion analysis analyzer, 7% growth is expected. Semiconductor, nanotechnology, logic customers, foundry customers, the sales of the manufacturing equipment will increase at the rate of 4%. Other materials and the procurement-related business will be lower. In fiscal 2023, it is not that we received all the orders solidly, but with the customers, we are talking a lot with the customers, and we have some idea as to how much we can sell to those customers. I believe that we can achieve that much sales based upon what we discussed so far. You talked about the industrial digital business. As mentioned, Lumada's IT/OT is done by this area. Digital solution, robotics SI are very solid and solidly increase and grow. Compared to 2022, back in fiscal 2022, there were big deals and projects, but there was no repetition of the same project. Also exchange rate, Forex, will also be negative. That is the reason why we expect flat growth. Industrial digital, there are the non-mass-produced and the mass-produced business. The non-mass-produced products, UPS and the compressors and all these, the electrification related businesses, we will be the leader in this segment, overseas and domestically. Thank you very much. Thank you. Awata. With this, we'd like to conclude the presentation on the consolidated financial results for the year ended March 31st, 2023, and the progress of the Mid-term Management Plan 2024. Lastly, I'd like to make announcement about the Hitachi Investor Day 2023, scheduled on the 13th of June, and we will give you further details later. Thank you very much for your attendance. It's been a long meeting, but thank you for your attendance today.