The time has come to start the Hitachi Limited web conference on the second quarter of the fiscal year 2023 earnings. Thank you very much for joining us and despite your busy schedules today. The presentation materials are available on the Hitachi's IR site and the news release site for your convenience. I would now like to introduce the speakers for today. Yoshihiko Kawamura, Executive Vice President and Executive Officer, CFO. Tomomi Kato, Vice President and Executive Officer, Deputy CFO. Masao Yoshikawa, Executive General Manager of Investor Relations Division. Now, in the beginning, CFO Kawamura will provide the outline explanation of the results. We will be switching over the screen. Mr. Kawamura, please. Hello, everyone, this is Kawamura speaking. Thank you very much for participating in this earnings call today. I would now like to give you the outline of the consolidated financial results for the second quarter ended September 30, 2023, and I would like to also talk about the upward revision for the full year. Please now refer to page one. These are the contents that I wish to cover today. I would like to, first of all, cover the key messages of the results in the second quarter. Second, is the Q2 fiscal year 2023 results will be covered. Then the fiscal year 2023 forecast will be presented. There is also appendix that is provided. The first and second quarter, in other words, the first half results are included in the appendix. Please refer to page three. This is the key points regarding the results of the second quarter. Number one is the results, and it is also included at the continuing consolidated business, which is the three sectors: Digital Systems & Services, and Green Energy & Mobility, as well as the Connective Industries. For the second quarter, the numbers are presented here in terms of revenues, JPY 2,096.5 billion, and that is a 13% increase year-on-year. Adjusted EBITDA was JPY 202.7 billion, increase by JPY 17.3 billion. We had the increase in revenues as well as the profits. For the first half, revenues was JPY 3,924.8 billion, year-on-year, a 12% increase. Adjusted EBITDA, JPY 359.6 billion, year-on-year, increased by JPY 49.2 billion. This is increase in revenues as well as the profit. Number two, is the forecast for the full year, for the continuing consolidated business, which is the three sectors. Has been revised upward, revenues, JPY 8 trillion. The comparison against the previous forecast was 2%. Adjusted EBITDA, JPY 818 billion, increased by JPY 18 billion, and they have been revised upward. Therefore, this is a increase in revenues as well as profit. If we look at the consolidated total forecast in terms of net income is forecasted at JPY 520 billion, increased by JPY 20 billion. Core free cash flow JPY 340 billion, increased by JPY 30 billion from the previous forecast. Number three, looking at the orders, we have had a very firm order growth, though mainly in the large scale businesses. In Digital Systems and Services, Q2 orders was JPY 669.3 billion, year-on-year increase of 15%. A backlog has increased up to JPY 1.5 trillion. For Hitachi Energy... The orders have been very strong. The Q2 orders was JPY 653.8 billion, year-on-year increase of 14%. The backlog of has reached 3.9 trillion JPY. Later on, I would like to give you more details. Hitachi Energy has 1.6 trillion JPY in terms of revenues. So, about a little bit less than three years of backlog has been accumulated already. So, the number four is the shareholder return, which has been strengthened. The JPY 100 billion share buyback have been completed in September and has been subject to cancellation. In terms of the interim dividend, it is planned to be JPY 80 per share. This is JPY 10 increase from fiscal year 2022 interim dividend, and JPY 5 increase from the fiscal year 2022 year-end dividend. We are increasing shareholder returns. That is the basic outline. I'd like to now proceed to page five, which is the highlights of the results for the second quarter of the fiscal year. The headline should be referred to continuing consolidated business revenues and profit. In terms of Connective, there have been investment restraints by semiconductor-related customers, so this is subject to decrease in revenues as well as profit. But that is for the second quarter, but on a full year basis, it will revert back to increase in revenue as well as profit. But it has increased overall because of the Digital Systems, Services, and Green Energy & Mobility. Please look at the continuing consolidated business. Revenues was JPY 2,096.5 billion, year-on-year increase of 13%. In brackets, this is the... Excluding the Forex impact. In the absence of foreign exchange, that would be an increase in 10%. Adjusted EBITDA, 202.7 billion, increase by 17.3, and adjusted EBITDA margin, 9.7%. Net income was 144.5 billion, YOY, increased by 15.9 billion yen. Therefore, increase in revenues as well as profit has been achieved in this quarter. Please look at the table below on the right. The foreign exchange impact is explained for dollar as well as euro. For the Q2 of last year was 138 yen in terms of average, but for this period, 145 yen, so there is a positive impact of the foreign exchange. Please now refer to page six. This is once again about the second quarter. Page six shows the information regarding Digital Systems & Services, as well as the Green Energy & Mobility. Page seven will provide the similar information for Connective Industries. Regarding Digital Service, Systems & Services on page six, increase in revenues as well as profit was achieved. Adjusted EBITDA was JPY 646.5 billion, increased by 9% year-on-year, and EBITDA JPY 82.5 billion, increased by 14.4%. And Front Business and IT Services, Services & Platforms shows increase in revenues as well as profit. As mentioned here, in terms of GlobalLogic, continuing to show very strong growth, 21% increase in terms of revenues year-on-year basis, and Adjusted EBITDA margin is 20%. Therefore, high profitability has been maintained, increase in both revenues as well as earnings. Regarding Green Energy & Mobility, as a sector overall, increase in revenues as well as profit, in terms of 17.7 billion JPY in terms of revenue, an increase of 30%, 36.5 billion JPY in terms of Adjusted EBITDA and increased by 6.2. Nuclear Energy Power Solutions and total is provided. Adjusted EBITDA was minus JPY 2.3 billion, and a 70% increase in revenues, and adjusted EBITDA minus JPY 6.3 billion. There is a decline here. As shown on the right-hand side, there has been projects, increase in cost for nuclear energy, but this is one-off. For Hitachi Energy, as I mentioned earlier, our orders have been remaining very strong, and therefore, a positive impact is shown. Adjusted EBITDA, 34.0% to 7.7%, and revenues increased by 35%. Adjusted EBITDA increased by JPY 14.4 billion, so increase in revenues as well as profits. Railway Systems have also remained very strong, increase in revenues as well as profit. Adjusted EBITDA was JPY 13.2 billion, and in terms of revenues, increased by 29% year-on-year, and adjusted EBITDA plus JPY 4 billion increase in revenue, as well as profits. The performance has been very strong. Now, in terms of Connective Industries, as I mentioned earlier, for the second quarter, this is the result. But in terms of EBITDA is JPY 768.5 billion, 2% increase in revenues, but adjusted EBITDA was -10.2. There is a specific reason for this. In terms of after building the Smart Life & Ecofriendly Systems, it has a decline by 7% in terms of revenue. Suggested EBITDA was JPY 4.8 billion negative. The reason is very clear, as you can see here, when we had the pandemic, remote work has been promoted, and that is when the home appliances increased. So there has been a backlash and now reactionary decline. We believe that this will recover going. Next is Hitachi High-Tech, a Measurement and Analysis Systems. The medical as well as the semiconductor is very strong. Medical has been very strong. But in terms of semiconductors, there has been a delay in terms of investments made by customers, and therefore this is showing an impact, a decrease in revenues as well as profit. Industrial Digital is +6% or +1.7% in terms of adjusted EBITDA. Water & Environment has been subject to some product mix impact in decline by 1.4. Industrial Products increased by 7%, plus 1.1 increase in revenues as well as profit. So that is how we have been showing good performance in the second quarter. Page eight, this is a continuation of the second quarter. Hitachi Automotive referred to revenue increase as well as the profit 27.2%. Revenues are increasing by 9%, and adjusted EBITDA plus JPY 10.6 billion... 10.6. Performance has been very good last year, so there is a reactionary decline, but we are reverting back to increase in revenue product, the trend. So we have zero for the Hitachi Construction Machinery and Hitachi Metals. Now, please refer to next page, from the second quarter of last year to the second quarter of this year. The waterfall chart is provided. Revenues is provided, as well as Adjusted EBITDA is shown below. As you can see on the left-hand side, we started off with JPY 2,846.9 billion. The next area is very important, minus JPY 499.5 billion. This is the divestiture of the Hitachi Construction Machinery and Hitachi Metals. Foreign exchange impact had an uplift. In terms of dollar, 138 has gone to 145, therefore, this has had a positive impact, increased by JPY 70 billion. And 230.1 billion, in terms of others, business expansion and reaching 2,637.5 billion yen. For adjusted EBITDA, similar trends are shown here. Starting with the 238.1 billion on the left-hand side, divestiture of the Hitachi Construction Machinery, Hitachi Metals, positive impact of foreign exchange. There have been changes in business structure and resulting in 239.9 billion yen. Please look at page 10. This shows second quarter financial position and cash flows. The part highlighted in gray, please look at it. Total assets came to JPY 13,475.2 billion. They have increased. On a four-year basis, it's somewhat different, but change from March 31, it's been an increase of JPY 973.7 billion. Majority of that is because of Forex impact. It's not a real change, it's because of Forex. And something similar applies to total liabilities, interest-bearing debt JPY 2.375 billion. Please have a look at the number to the right, JPY 162.5 billion increase, which is impacted by Forex. D-ratio 0.41, so it's stably controlled. And cash flows as well. On the back of very strong performance, cash flows have improved. Operating cash flow, JPY 316.9 billion, an improvement of JPY 83.2 billion. And free cash flows, JPY 206.6 billion, improvement of JPY 45.3 billion. Core free cash flow, this is one of the most important KPIs for us, JPY 121.1 billion, up by JPY 96.5 billion. So cash flow is performing quite robustly. Moving on to page 11, I would like to report on Lumada business. There are three sets of diagrams. On the left, this shows the Lumada businesses' revenues, how are they growing? The bars on the far left, a comparison between Q2 this year and Q2 last year, and to their right, a four-year comparison, 2022 versus FY2023. So if you could look at FY23 forecast, Lumada business revenues are to go up to JPY 2.31 trillion, so up 18% year-on-year, that's what we're expecting. And a 15%, this is adjusted EBITDA margin, so this is going to be one percentage point increase from 14% last year. On the right-hand side, Lumada business ratio, there are two sets of bars. Revenues on the left-hand side, if you could look at the red portion of the bar. ... FY21, FY22, FY23 forecast, it's growing very nicely. According to our forecast for FY23, the proportion of Lumada business is going to be twenty-nine percent, almost 30%. On the far right, adjusted EBITDA, like revenues, adjusted EBITDA for Lumada is also growing quite strongly. FY23 forecast for adjusted EBITDA is JPY 818 billion, ratio of 41%. Now, if you could look at the horizontal bar below, this shows Lumada business revenue composition by segments. Digital Systems & Services are growing, of course, but I would like to draw your attention to Green Energy & Mobility, which includes Hitachi Energy, Power Grid, and Rail. It's up by 23%. So IT times the OT, which we're doing strategically, we're trying to increase our business through that, and that is paying off quite successfully. Below, some of the major events in the second quarter are highlighted. If you could look at the section for digital, the two last bullets. GlobalLogic is making major contributions because it's a global company. In the first bullet, GlobalLogic received a large business from Continental Automotive, being awarded Supplier of the Year by the company. GlobalLogic Japan is co-creating with customers, collaboration with Taisei Corporation as well as Aflac is doing very well. Next is the forecast for FY 2023 on a full year basis, page 13. These are the highlights. The most important point that we would like to report on today is full year forecast for all profit items is revised upward. So, compared to the last forecast, we're going to make upward revisions to all the items. The three sectors, we are expecting increase in both revenue and profit. And Astemo, we have talked about Astemo's divestiture, and successfully, in October, Astemo has moved to become equity method affiliate. And, Thales GTS acquisition, we now have a good forecast for a European monopoly law requirement to be met. And, there's been some delay, but it will be expected to be completed in the first half of 2024, so it's not included in FY23 forecast. The gray part, a total of JPY 9.15 trillion, as you can see, compared to a July forecast, it's been increased. At the last forecast, revenue was JPY 8.8 trillion. It's now increased to JPY 9.15 trillion. Adjusted EBITDA from JPY 835 billion to JPY 865 billion. Adjusted EBITDA margin remains the same. Net income, we reported that it's going to be JPY 500 billion the last time. It's increased to JPY 520 billion, so upward revision there. EPS, the same thing, from 535 yen to 559 yen. Core Free Cash Flow, as I noted, this is one of the most important KPIs. It's been increased by JPY 30 billion, from JPY 310 billion to JPY 340 billion. ROIC as well is going to be raised from 7.5%-8%. For all profit items, increases are to be made. So compared to the last time, continuing consolidated business is also going to see expected increase in revenue and income, and lower right assumed at FX rate. The 140 yen to the US dollar, and 150 yen to the euro. These are the assumed FX rates used. If you could look at the sensitivity, we're looking at the impact of FX in the second half, so that's what is noted here. In terms of dollars, when there's a one-yen move in the Forex rate with the US dollar, when a yen becomes cheaper by one yen, a revenue increase of JPY 6 billion, adjusted EBITDA of JPY 0.4 billion increase is going to be enjoyed. But in terms of yen-euro rate, the sensitivity or impact is going to be half of that. Moving on to page 14, highlights for forecast by sector on a full year basis. Starting from the top, by Digital Systems & Services, adjusted EBITDA, JPY 310 billion, so revenues increase of 3%. Adjusted EBITDA increase of sixteen point, 16.2 billion. So compared to the last forecast, increase in both revenue and profit. Please have a look at GlobalLogic below. As I said, it's going through high growth, so year-on-year, 22% increase in revenues, and adjusted EBITDA, increase of JPY 6.8 billion. Green Energy and Mobility, for this as well, on a full year basis, both increase in revenue and adjusted EBITDA. Revenue increase of 13%, adjusted EBITDA, 22.4%. And Hitachi Energy, adjusted EBITDA, 137.1%. The margin is 8.2%. Revenue up 18%, adjusted EBITDA +36.1, so very robust. Railway systems, very firm as well. Adjusted EBITDA, JPY 56.1 billion. Revenue up by 10% year-on-year. Adjusted EBITDA is going to be increased by JPY 8.6 billion, so increase in both revenue as well as profit. Connective Industries, as I said at the outset, in the second quarter and in the first half, increase in revenue, but decline in profit. But on a four-year basis, increase in both revenue as well as profit is expected. Adjusted EBITDA, JPY 330 billion, 11% margin. Revenue up 1% year-over-year. Adjusted EBITDA up JPY 17.8 billion. Building Systems. China's real estate sector continues to go through correction. Because China is our main market, we were concerned. And because of that, new installations, mean installments are going to be declining, but adjusted EBITDA is up by JPY 1.1 billion. As is noted on the right, in a strategic manner, rather than a new installations, existing elevators are being serviced. We're focusing on that, and that is contributing. Next, high tech, Hitachi High-Tech, there's more correction needed for semiconductors, so decline in both our revenue as well as income. Hitachi Astemo is going to be deconsolidated in the second half, so that is why we have negative numbers here. Given all of this, moving on to page 15. FY 2023 total, how will the numbers change? Like we saw with Q2, revenue is at the top, adjusted EBITDA at the bottom. From the left, last year's numbers. So revenue, JPY 10,881 billion was the number we saw last year. Divestiture of Hitachi Construction Machinery and Hitachi Metals, it pushed down by JPY 1.322 trillion. Astemo is divested, there's another drop, and foreign exchange to contribute and others. So we expect JPY 9.15 trillion this year. The same trend is seen for adjusted EBITDA. On the left, we're going to start from JPY 884.6 billion, and likewise, with divestiture of Construction Machinery and Hitachi Metals, JPY 73.8 billion, divestiture of Astemo and foreign exchange, others, to come to JPY 865 billion. Next, appendix. As I said, we are highlighting the total of Q1 and Q2 numbers, the first half numbers. As is highlighted in the caption, Digital Systems and Services and Green Energy and Mobility revenues and profits increased. Connected Industry saw increase in revenue, but slight decline in profit. Consolidated Business revenues and profits, please have a look at the middle column, increase in revenue and profit. So revenues, JPY 3,924.8 billion. Year-on-year, 12%, without Forex, 10%. Adjusted EBITDA, JPY 359.6 billion, so year-on-year increase of JPY 49.2 billion. Adjusted EBITDA margin, 9.2%, which is an increase of 0.3 percentage points. Net income, JPY 217.7 billion, increased by JPY 48.5 billion. Core free cash flow, JPY 121.1 billion, increased by JPY 96.5 billion. So as you can see from the results of the first half, including Q1 and Q2, we've seen increases in both revenue and profit. Next, the highlights of results, H1 only, just briefly. So both increase in revenue and profit for DSS and Green Energy and Mobility as well. But Connective Industries, as I said, because of High-Tech, we're seeing slight decrease in profit, although there's an increase in revenue. Moving on to page 19, this shows consolidated statement of profit and loss. On the left-hand side, FY 2022 Q2 and Q2 FY 2023 year-on-year comparison. For the full year as well, FY 2023 revenue JPY 9.15 trillion, and Adjusted Operating Income JPY 920 billion, and a negative 130 in the middle. And there's a footnote. This shows business reform, restructuring, and so forth. EBIT JPY 775 billion. Net income JPY 520 billion, which is an upward revision of JPY 20 billion. If you could please go to page 20, these are first-half numbers as well. So revenue by market is shown. Now, if you could look at the middle part, highlighted in black box. So consolidated business continuing... What I would like to draw your attention to is China. China is struggling. Minus 2% is YOY growth. Now, to the right, North America, 21% increase. Europe, a 20% growth. So while China is struggling, it's offset by North America and Europe's growth. And consolidated total, what I would like you to see is the ratio, bottom right corner, 64%. And continuing consolidated business accounts for 61%. ... And so if we look at consolidated total overseas ratio is 64%. Next, page 21 is about orders. I have repeatedly said that orders are very strong. From the left, DSS is doing very good. Year-on-year, up by 13% overall, and green energy and mobility below. This is extremely strong. If you could look at Hitachi Energy, second from the bottom, up 42%, and railway, 148%. So orders are growing very rapidly. To the right, connective industries. When it comes to orders, elevators for building, buildings are affected by correction in China's real estate market, so orders are slightly down. And appliances, home appliances, are ±0%, and as semiconductor business is still correcting, so down 9%. But orders increase in railway and others, so overall orders are very firm and robust. So our second quarter performance overview and upper revisions made to our full year forecast. That concludes my presentation. Thank you for your attention. We would now like to proceed to the Q&A. Please use the web conference system screen, and press the Raise Hand button. When your name is called, please unmute, state your name and affiliation, and ask your question. Furthermore, if you no longer need to ask the question, please release the Raise Hand button. Today, we will not show the video of the person asking the question. We will take questions from the Japanese channel first, and then the English channel. Today, we will be receiving questions from the media, institutional investors, and financial analysts together. We can now take questions. Yasu-san, please, please unmute and ask your question. Question. I have two questions. First question is power grid. It is a very successful business in terms of orders, as well as our performance is very good. But at the beginning of the fiscal year, guidance showed that there would be a decline in revenues, and it seems that it has been subsequently increasing. So has there been change in the market as well as renewable energies? Is that a driver for you in pushing up your business? So what is the market, and what is the current situation? Are you able to maintain this for the next year as well? Now, in terms of railway, so revenue is declining, but our profit is increasing. But it seems that your competition is also beset with challenge. So those are the two questions I wanted to pose. Thank you very much. Answer. I would like to address the basic outline, and Kato-san will give you specific numbers. Now, regarding your first question, for the power grid, energy sector is in a super cycle now. It's a once in decades investment increase is occurring. So the impact of the super cycle is very significant. More specifically, because of the Ukraine issue, it originated from that, energy supply in Europe was impacted, and from the Middle East, they have to buy electricity significantly. And as you have rightly mentioned, there is a need, there is a call for utilizing renewable energy. So in the grid, there is significant demand, and we are able to capitalize on that. In terms of the market situation, it's a once in a decades of cycle, so it is likely to continue for 10, 15 years going forward. That is the driver for it. Up until last year, the Thales, there was to be included from fiscal year 2023 until last year, but now it is going to be delayed to next fiscal year, so that has had the most significant impact. But if we compare the business on a year-over-year basis, we have been showing... There has been increase in revenues as well as profit. So it's just a matter of the Thales being reflected with a delay. Question. I have a follow-up question, especially for the power grid. So regarding the market, do-- if there is significant increase in the market, can you accommodate in terms of capacity? Because power semiconductors are in shortage. What are... Can you talk about the capacity? Second, in terms of profit, Hitachi Energy is increasing profit significantly, but about JPY 7 billion PMI expense has increased. But beyond that, it seems that the other expenses are also increasing. So do you think it's going to run its course in 2023, and in 2024, you will be on a trajectory of growth and profit growth? Answer. Orders are increasing, and you're asking about the capacity for 2023 and 2024. We are trying to control ROIC appropriately. Capacity building will be promoted. Several tens of billion investment will be made to enable this. So the increase in orders can be absorbed appropriately. There will also be outsourcing. We can utilize the external plants and factories as well. So we will take a two-pronged approach, so then the orders can be reflected in the profit and loss. The high voltage orders are significantly increasing. So we are trying to contain this within Hitachi Energy, but there are parts of the business that will be utilizing subcontractors as well, so that we can manage the capacity overall. So there will be a ramp up in terms of investment, as well as utilizing external resources to meet the increasing demand. Now, in terms of capital expenditure, let me also give information as well. For 2023, compared to the previous year, 136% is the capital investment that we are planning. The increase is mainly in Hitachi Energy. Therefore, we will ramp up the capacity in that area. Now, related expenses are also increasing. This is mainly in IT for integration. The schedule has been somewhat delayed. For this year's expenses have increased accordingly, but for next year, there will be a significant decline. That's all. Now, regarding the Hitachi Energy market, that will be addressed by Yoshikawa-san. On the twenty-fifth of October, Hitachi Energy production capacity investment is to be made, as well as resources will be ramped up as well. Please read this release. It will give you information regarding the market forecast going forward for your reference. Thank you. Thank you. Next, Takizawa-san. Takizawa-san, please unmute and start your questions. Thank you for the opportunity. My first question, page six, GlobalLogic's increase in revenue and profit, is this organic? Isn't there any impact from M&A? If M&A impact is not included, then that's a very strong increase in revenue and income. Its competitors are suffering from dropping revenue, but why is it so strong within the group? Cases are being reused, if you could explain? Thank you very much for the question. GlobalLogic acquired 3 companies of late. What kind of companies? Romania, Latin America, Ireland, these are entities from such regions, and basically, these are acquired in order to increase staff. So digital engineers today in Silicon Valley are in high demand. There is a labor tightness in India and East Europe, but we're trying to source people, and with the staff increase, it's going to translate into revenue increase, not that we're purchasing companies with large cash flow. So the purpose for the acquisitions is really staff increase. To note the numbers, turning to GlobalLogic, on a dollar basis, up by 16%. As Kawamura explained, excluding M&A on an organic basis, that's up 6%. So if we include M&A, the overall growth of 16% in the first quarter was up by 19%, so it's slightly down compared to Q1, and that's because of suppressed investment by some customers, retailers, and tech companies. Such customers are reducing investment, but revenue from existing customers is up. So in terms of revenue, it's at the top of the industry. That's our awareness. Thank you very much. Another question, as Yasu-san asked, so in the last forecast for railway, well, there is a decline from there, and that's because of delayed Thales acquisition. But compared to the beginning of the year, so organic improvement in revenue and income, is it going to happen earlier or later than what you expected? Thank you very much for the question. So I don't have organic-only numbers at the beginning of the year, but as far as railway, it's more or less on plan from the beginning of the year. It's not that all of a sudden we're getting a very large project. So it's on plan basically from the beginning of the year, and there's been a slippage by one year for Thales, not that there were major reasons behind this. Thank you very much. Thank you very much. Next. Hiroi-san, please. Please unmute and ask your question. Question. I hope you can hear me. I have two questions. So you have a good performance over this period, but there are conflicts in the world. There is also interest rate risk as well. For your company, what is the most significant risk that you consider? And against this risk, what other measures you are contemplating? That's my first question. Thank you for your question. Answer: For the individual business, so far, there is no significant concern. In terms of individual business risks, does not exist. It is more the macroeconomic risk that is likely to have an impact for this fiscal year, as well as the next fiscal year. Interest rate hike could have an impact. WACC will increase, that means that the investment will be impacted. Investment could slow down. Foreign exchange could be subject to volatility with the increase in interest rate. What is more significant is the impact of war. There are two wars ongoing today. The oil price will go up, the interest rate will go up. It can slow down the economy overall. So the macroeconomic environment, it will have an impact on individual companies. That is our major concern. We are, however, implementing various measures. In terms of interest rate, currently, debt is very low cost. Therefore, essentially on debt, we are procuring funding, and we will pay down debt and control the funds that we utilize. We will also issue corporate bonds to enjoy the low interest rate environment. In terms of foreign exchange, we have hedged almost everything by futures transactions. So we have implemented measures. But for geopolitical risk on our part it isn't something that we can control. So we will watch the situation very carefully and take appropriate measures based on need. So that concludes my explanation regarding the risks presenting us. Question: Hitachi Vantara, a reorganization has been announced, and generative AI comments were made. It was quite prevalent. For your company, what is the impact on performance by generative AI? How much is going to come to the fore in going forward? Answer: We don't have numbers for generative AI on a standalone basis. It has emerged only around November of last year. OpenAI, ChatGPT was announced, and that was the start of generative AI. So it's less than one year. Therefore, specifically, what the kind of business it has generated is not yet identified. However, we are trying to capture this as much as possible. For example, in terms of IT, the program coding was conducted by engineers in the past, but we can now replace some of it with Generative AI. For white-collar work and the forecast prediction, as well as reporting, can utilize Generative AI as well. So increasing revenues as well as decreasing in cost is what we're trying to achieve using Generative AI. We have set up a team for this specific purpose. When we speak next time, I hope that we can give you a clear report. However, this has only just begun. But this trend should be captured. This will also be reflected in Vantara's reorganization, so that generative AI will be incorporated appropriately. I'm sorry that I cannot share numbers with you at this point in time. I would also like to also give you information. In May, generative AI center has been established, and at the end of the second quarter, we had 300 inquiries, and also, there was a dozen or so orders were received as well. So, activity is picking up now in this area. For GlobalLogic, as shown in the Lumada slide, externally, generative AI, well, you can understand that the GlobalLogic is most advanced in terms of generative AI within the Hitachi Group. Thank you. Next, Yoshi-san. Please unmute, and state your questions, please. Yoshi from NHK. Can you hear me? Yes, we can. So you made upward revisions to your full-year forecast, and a large part of it is impact from Forex. And of late, the yen is becoming cheaper. And once again, if you could explain the impact of Forex on your business. And in the third quarter and fourth quarter, what's our forecast for Forex? What's your view of Forex. My second question has to do with overseas business. There's a decline in China, but that is being offset by other regions. You mentioned the Chinese economy is becoming rather sluggish right now, so how do you expect the impact to be on your business? Well, thank you for the questions. It is very difficult to forecast Forex. Page thirteen, in the material that we presented, so, if yen becomes cheaper, as is noted, in terms of revenue, JPY 6 billion, and Adjusted EBITDA, JPY 0.4 billion of positive impact, can be had. In order to minimize the Forex impact, we're taking out hedging. Today, the rate is already 150 yen to the dollar, so, if there's a major yen depreciation, going forward, there could be potential interventions. So would it hit 160 yen, 170 yen to the dollar? It's difficult to assume that. And it also depends on yen-denominated interest rates, how they will evolve into the new year. That's all I can say. We don't really know which way it will go. Even if there are developments, we're trying to minimize Forex impact so that it will not impact too much on our business. What's our view on overseas business or Chinese business? We have a large business in China exceeding JPY 1 trillion: elevators, automotive parts, IT, energy-related power grids. We're putting together a guideline. Basically, Tokyo will not inject new capital into China. That's not what we're doing. There's already capital in China, which is to be invested in China, so fresh money is not being injected from Tokyo into China. Trading, in the past, what we manufactured in Shanghai was exported to Tokyo as parts and components, but that business is being minimized so trading is being controlled. So in principle, investment and trading necessary is being done within China. That's the guideline. So JPY 1 trillion business in China, to grow substantially all of a sudden, that will not happen. We would like to keep the current level of business going forward. That is our basic policy. About Forex, well, impact in our future business, as Kawamura-san said, so of the upward revisions we made this time, what would be the impact of Forex in terms of revenues? We increased by JPY 350 billion. Two-thirds of the upward revision is Forex. The rest is organic growth. In terms of profit, increased by JPY 30 billion this time, 60% is attributed to Forex, and 40% is organic. So that's the breakdown of the upward revisions. Well, what we talked about as simply is, described on, page 9, so if you could please, refer to page 9 later. Thank you. Thank you. The next is Sawa-san, please. Please unmute and ask your question. No question? I have two questions. First page is page 13. On a consolidated basis, the, the guidance, for the year has been subject to revision for the consolidated, business. For the three segment, revision is also shown here as well. In terms of the continuing consolidated, business, and the net income has also been, explained as well. It has changed, from, five hundred and two billion to five hundred and thirty-three billion, so increased by 3 billion. For EBITDA, and so it seems that it's somewhat different to the EBITDA change, so it is a significant revision of JPY 30 billion. Now, for the consolidated business going forward, what is the basis of the calculation of the net income calculation? That's my first question. Well, actually, on page 19, the last forecast comparison is made. Adjusted EBITDA basis is JPY 30, and net income is JPY 20 billion. But for others, there have been the business reorganization that is improving in the area of Astemo. For the business structural reform, -JPY 20 billion is shown here. For Astemo, there has been some deficient parts issues that has had an impact. ... Question, in the consolidated business going forward, the Astemo is no longer included. Isn't that the case? Answer, that's not included. Astemo, the division part has improved, and that is the reason why. You said that that is not the reason why you have revised upwards significantly. So it is other items in the three segments attributable to the three segments have been subject to a revision. Is that a correct understanding? But for the major items, in terms of page 19, there have been adjusted operating profit [of] JPY 45 billion. [For] adjusted EBIT, there's JPY 30 billion. But the main part is JPY 45 billion improvement. Out of this, for Astemo, in October, half month remains around JPY 11 billion. But the remaining JPY 33 billion will be the improvement in the three sectors, mainly in the GEM sector. Green Energy and Mobility is the most significant. So for the three segments, adjusted EBITDA is improvement of JPY 18 billion, which is mentioned on page 18, page 13. Let me confirm this offline. Now, regarding page 19, according to the new plan for the year, non-operating, there is the structural reform expenses was JPY 130 billion, and JPY 20 billion increase has been made in terms of this revision. So it's about JPY 30 billion for the first half, so just like that, that JPY 100 billion will be in the second half. Please elaborate on this further. Kato-san will respond to that. Regarding JPY 130 billion, out of this, the structural reform expenses is mainly impairment, as well as, severance upon restructuring. We are assuming that to be around JPY 70 billion, and others will be included in the JPY 130 billion. Now, the variance from last time is JPY 20 billion, is the others. As I mentioned earlier, Astemo measures have increased. That's the major part of the JPY 20 billion. Understood. Thank you. Hi, Thank you. Next, Ayada-san. Ayada-san, please unmute and ask your questions. Thank you. Ayada from J.P. Morgan. I have three questions. Question number one, Hitachi Energy's upper revision to its full year forecast, the idea behind is that a profit is increased in terms of Adjusted EBITDA, but margin remains the same. So a revenue increase is translated into increase in profit. That's how it appears. But increase in revenue compared to the original plan, what's been the breakdown or the upside? So there was Forex impact or project development, or deliveries being good. So on a full year basis, why is revenue increased so much? Despite the increase in revenue, the margin remains the same, and profit is not going to increase as much. And so are you being conservative, or are there any other factors? Thank you for the question. Kawamura will answer your question. Actually, one of the characteristics this time is that we have seen surge in orders for high voltage products and others. And the way in which profit manifests is last year it was short delivery products. So what we received as orders in 2021 will translate into profit and loss in 2022. But this time, longer delivery products are being ordered. And so part of what we received as orders this year we'll see soon, but we will have to wait until 2024 and 2025 before we can see the revenue or profit and loss. So not 100% of increase in revenue is going to be translated into 100% of profit increase. So that's because of the product mix. But into 2024, so orders of long delivery products, half of that will translate into profit and loss. So in terms of profit, I think we will see an improvement. There will be more profit increase to be seen. So that's the first answer. And secondly, DSS Q2 margin has improved quite markedly quarter-on-quarter and year-on-year. And... However, on a full year basis, margin remains the same. So in the first half, margin improvement was somewhat temporary. Isn't there going to be any upside in the second half? At this moment, well, the numbers are as they are. Is there going to be a major upside in the second half? Its own plans, so we do not expect a major upside in the second half. But as far as GlobalLogic is concerned, it has huge potential. More specifically, Railway and Hitachi Energy. GlobalLogic is representing collaborations strongly with these entities, and GlobalLogic Japan's work is increasing. And so given that, GlobalLogic could see further upside. There's that potential. But would there be a huge surprise? Would there be a huge upside? No, we're not expecting that to happen. So second quarter DSS margin is more or less expected according to your original forecast. Yes, 12%-13%. That's basically in line with our plan. Understood. Thank you. My last question, question number 3, regards Hitachi High-Tech's forecast this year. So Hitachi High-Tech's, if we... I look at supplementary presentation, in terms of Nanotech, I think profit is down by JPY 10 billion. But for High-Tech overall, full year forecast remains the same. So a decline in Nanotech, what is going to offset that decline in Nanotech? So Nanotech is revised downward, but from first half to second half, it seems that the plan is to increase profit somewhat. So given the status of the current semiconductor market, this may be challenging. So what is the visibility? What is your view on that, please, if you could share that with us? So thank you for the question. Well, regarding Hitachi High-Tech, so Nanotech is down. How are we absorbing that? Medical analytics and testing that business is performing well, so we have been able to absorb the decline with that business. And our view on semiconductors, earlier, I talked about the semiconductor industry. So semiconductor industry there are ups and downs, it seems. NVIDIA, for example, is working on AI autonomous driving. They're doing extremely well, but traditional companies such as Intel are having difficulties. Well, though they're on recovery, they're still having difficulties, so the picture is mixed. So rather than NVIDIA, our main customers include Intel and other traditional companies. They will be back, and we are incorporating their recovery into our plan. Not that, it's not going to be recovery. NVIDIA is doing extremely well, and our main customers, including Intel, are going to come back. As so, in the second half and, next year, we are expecting recovery, and that is reflected. Thank you. Thank you very much. Understood. Hi, Thank you. Negishi-san, please, please unmute and ask your question. Question. I hope you can hear me? I have two questions as well. Regarding the Thales signal business, you said that it is not going to be purchased in 2023. Are you talking about the fiscal year or the calendar year? What do you mean by year 2024? Please clarify. And I understand that the competition authorities have given approval. Why is it delayed if that is the case? Answer: I'm sorry I was not clear before. In terms of calendar year, from April to summer of 2024 is the timing, the for. It will be in the first half of the fiscal year 2024. Now, regarding the delay, the bottleneck has been the U.K. signal business, anti-monopoly issues, CMA Authority. As the Competition and Markets Authority is, CMA, and for the signal business is being evaluated. If we acquire the Thales business, then the competition with our peers could be undermined according to their view. So CMA has been investigating this matter, and we have also provided remedies on several occasions. And for part of the business, it will be carved out, in order to clear the anti-monopoly issues. Minorish business will be carved out, so that this problem can be overcome. And the CMA of the UK has approved this process, and that was within November. And the Brussels Competition Authority will also give approval as well, which is forthcoming around November. We started with the UK, the part of the signal business was issues with Rail, and we have been able to clarify this by providing a remedy. This process has taken time. Let me also provide some information. Among the conditions, it's not so much about the scale, but in the case of UK as well as in Europe, when we- there will be, when business transfer has to be made, transcending boundaries, then the, the final agreement has to be made. Otherwise, we cannot close the deal. That means that, the business transfer- the receiving party will have their conditions as well. This will require time for this process to be completed, and SPA will have to be concluded with the company that is going to be purchasing this business. And with this conclusion of the SPA, we will be given the go sign. That is the reason why we have this time schedule today. Question: taking into consideration what you have explained, the Thales's positive impact will be smaller in terms of the P&L impact to when the deal is completed? Answer: Because of the remedy, we are going to have to carve out the certain part of business of Thales. It is rather small, but yes, indeed, it will have an impact on the P&L. But for the major part of the business, the impact is minimal. I have another question. This has been raised several times, today, and, regarding the upward revision, is the overall conservative, is that a correct understanding, inclusive of foreign exchange? There are buffers existing. So what are your thoughts on this matter? Please elaborate. So if you ask me whether we are conservative, that's a very difficult question to respond to. But in terms of the budget or formulation process in our company is very prudent, very cautious. We don't want to have any surprise, and the volatility within the period will be taken into consideration so that the plan can be achieved. So if you ask me if this is conservative, I believe it is reflecting the true picture, the actual. Toward the second half, the macroeconomic environment is unclear, so we do have a buffer overall. But toward the second half, we believe that the numbers can be achieved as presented. Overall, in terms of operating profit, we don't have a risk budget, only about JPY 5 billion. It is only for a slight volatility that has been included. Thank you. That's clear. Let me also talk about Thales. Regarding the completion of the acquisition, it's within... In the first half of 2024, from January to June period is when it is expected. Next, Yoshizumi-san. Please unmute and ask your questions. Yoshizumi from SMBC Nikko Securities. Can you hear me? Yes, we can. Thank you. There are two main questions I would like to ask. Question number one about upward revisions. So by factor, if you could explain. So JPY 45 billion in terms of Adjusted EBITDA. Well, Thales PPA is going to be reduced JPY 17 billion, and Astemo 12 billion yen adjustment, and Forex perhaps JPY 5-10 billion. Other than that, what are the factors? So, the organic part, please. So Railway, Astemo, and organic, so the numbers I have given, are they correct? Well, roughly they are correct, but I would like to turn to Kato-san for some additional remarks. Well, I may be repeating what I said already, but so adjusted EBITDA, we made an upward revision of JPY 45 billion, JPY 12 billion for Astemo, as you said. So three sectors, JPY 33 billion. And other main factors include GEM sector, JPY 26 billion, PPA amortization, JPY 15 billion. Other than that? Pure organic growth. JPY 17 billion, with all included. So that is the Forex impact. Thank you. Thank you for the answer. My second question. So progress in terms of mid-term business plan toward next year, if we look at three segments, adjusted EBITDA 20%. So given the upward revisions, I think you will be raising that by 20%. So, Power Grid, PMI are going down. Orders are very robust. Do you have a number in sight? And, IT and others, market conditions are very good. What is the progress made thus far? What's your view? Thank you for the question. As you know, we're under 24 mid-term business plan. Today, we're in the middle of the year. Next year will be the final third year. As of today, well, almost all the goals and targets set in the mid-term business plan can be cleared and obtained... can be attained, we believe. There are a few KPIs that we have to adjust perhaps, but in terms of flow, I think we'll be able to hit all the objectives, targets. So as of today, that is the forecast for the mid-term business plan. So, we're not thinking of making any downward revisions. The 2024 mid-term business plan has had very challenging targets. There might have been questions as to whether we may be able to achieve them, but I think we are going to be able to attain all of them as of today. Thank you. Next, we would like to take questions from the English channel. For those of you with questions, please use the Raise Hand button. Any questions on the English channel? Please use the Raise Hand button if you wish to ask a question on the English channel. There seem not. Therefore, we'll revert back to the Japanese channel. Muro-san, please. Please unmute and ask your question. Muro-san. Thank you very much for the opportunity to ask a question. I have two questions. First question is regarding the DSS business. The full year plan has been subject to upward revision, but if you look at the content, the Front Business and IT Services and Services & P latforms, GlobalLogic, have been remaining flat. So I want to know, what are you revising upwards specifically? Page 21, if we look at the Front Business, 19%, IT Services, 3% increase in GlobalLogic, increasing and remaining very strong in terms of orders. So seems that the... Do you think that the demand environment is going to be maintained in the second half? Do you think there is going to be an upside vis-à-vis the guidance? Answer: Regarding the DSS, information is not available to us now, but we are seeing an increase in all the different businesses, inclusive of GlobalLogic. There is no significant increase in one part of the business. Demand is very strong. Is there going to be a further upward revision for the second half? As I mentioned earlier, the orders, at what speed it is going to be reflected on the P&L, will differ from contract to contract. So just because demand is strong, we can't say immediately that they will be reflected in the guidance, but there is a possibility. I will say that. Second question is regarding GEM. You mentioned that the energy business is in a super cycle. Hitachi Energy is very strong as a result of that. But for the second quarter's orders, the increase is 14%. First quarter, well, JPY 1 trillion was the order received, so on Q on Q basis, it seems weak. Is there reduction in speed? What about the growth rate in the mid to long term? Compared to your competitors, is your competitor a single digit? What is your view? Within GEM, the railway first quarter and second quarter orders are receiving increasing 148%. Is there another tailwind, such as a super cycle for the railway systems as well? Answer: We are just discussing the second quarter, so Kato-san will provide the overall explanation. Regarding Hitachi Energy, thank you for your concern, but in the first quarter, JPY 100 billion orders have been received several times in Europe, in the Netherlands, and Germany, the HVDC was achieved. In Saudi Arabia, there was another business, and elsewhere as well. So in the first quarter, there were special circumstances. In the second quarter, 14% is a steadfast increase, therefore there is no concern regarding growth. In terms of railway system, in the first quarter and the second quarter, there have been major businesses to the tune of several hundred billion, mainly in Europe. And so the growth rate is around the same. Question: Hitachi Energy and Railway Systems, it seems that the mid- to long-term growth is going to... Do you think it's going to be in the teens for 2030? For these two sectors, detailed calculations are being made. We are aiming for 2030 is about seven or eight years down the road. We believe that there is going to be a successful growth. Revenues as well as margins are likely to increase as well in the long run. That is our outlook. Therefore, I agree with what you have just said. Thank you. Regarding orders, last year, looking back, there could be being 200%, when we were... was very strong. Third quarter is around less than 120. That's last year. 2021, there was a time in terms of 160% year-on-year in terms of orders received. But it was about 120% in the first quarter, second quarter, as well as fourth quarter. So a trend, and last year was exceeding 200% last year. But it could be 110% or 105%, reverting back to this level suddenly as well last year. So, and just because it is at this level, we don't have to be concerned about the super cycle. Regarding the size of the market, on the twenty-fifth of October, we came out with a release, IEA Power Grid, the market forecast is also included, and based on that, we will be promoting our business plans accordingly. So please refer to this release. Thank you. ... Next, Thong-san. Thong-san, please unmute and ask your questions. This is Damien Thong from Macquarie Capital. Two questions. First, Hitachi Energy's orders being strong order backlog, HVDC large projects, what is the weight of larger projects, including HVDC? You said that revenue does not translate immediately into profit and loss, or orders not translating into revenue right away. Is it going to take 2 years, 3 years? Given the capacity that you have, what is going to be the pace? What's the timeline? Thank you for the question. There are four segments we're working on, and orders for each segment, I don't have the specific numbers on hand, so offline, our IR department will get in touch with you with an answer. I'm not sure how much details we can provide, but we'll do our best to supply you with the details. Thank you. Understood. My second question: Digital Systems & Services in the first half, orders were very strong, but in the second half... So year-on-year growth. So is there a concern for negative growth for orders? So the potential growth in orders for the second half, if you could please, elaborate on that. Well, Kato will answer your question. Well, this time, a growth in the first half, and if you subtract it, that from the full year forecast, it may appear that we're not expecting much of a growth in the second half. But, the world is still full of uncertainties, the same with the markets, so there are some risks that we will have to consider, and that's, that is why we have come up with this forecast. Thank you. Understood. Thank you very much. Next, Sagisaka-san, please unmute and ask your question. Question. Thank you very much. I have two questions regarding nuclear. Regarding the performance in this period, there seems to have been increasing costs for some projects in nuclear energy. Can you elaborate further? That's my first question. And the second question is the following, which is on page 21, which is orders received. Nuclear energy orders are also growing. What kind of business is this? Is it Japan or overseas? Is it a one-off or continuous, sustainable? Please talk about the orders received for nuclear energy. I would like to answer your first question. I cannot give you details of the project. There is a certain project, however, our company and another company is following this project. Regarding the cost allocation, there have been discussions, and this is subject to coordination now. We believe that a certain negative impact will be coming to the fore. That is the reason why we have taken a conservative approach. It is about the cost allocation for between us and our partner company. Now, in terms of orders received, we cannot give you details of the projects, but they are all domestic projects. These are projects that we have been doing from the past from the electric power companies. So, question: Is it going to be one-off, or is it sustainable? Answer, regarding the orders of nuclear energy business. Well, it depends on the policies of the regulatory authorities, in other words, the national government. The large reactor construction is likely not to be the case, so therefore, it is maintenance as well as peripheral work, the type of business we want to promote. So we should not expect a significant increase or decrease. Technological innovation will be coming in the future. For example, nuclear fusion as well as third-generation small modular reactors, so will be coming further down the road. So it isn't as if nuclear energy business orders will increase significantly or decrease. It is on a constant basis. I think this will be maintained at this level going forward. As I mentioned earlier, this negative number is a one-off impact. Regarding orders, let me also elaborate further. For nuclear energy, revenues is increasing on an annual basis for this fiscal year. Therefore, this growth rate in terms of orders will depend on the projects. So it isn't as if these numbers will continue. It will be enjoying a stable growth going forward. So 90% and 56% will not remain as is. Time to close is fast approaching. I have two more hands, and once we're done with those people, we will conclude this meeting. So first up, Nishioka-san, if you could please unmute and ask your questions. Can you hear me? Your voice is a bit low, but I think we can capture your voice. So cost increase for nuclear energy, are you talking about your business with GE? There seems to be a project that you're doing with GE, and is the issue with the cost with GE? It's not about GE. It's not a project with GE. All right. Understood. Thank you. Hitachi High-Tech. On Hitachi High-Tech... Decline of 9% in the first half. So Chinese semiconductor orders are they down, and is that behind 9% decline in orders in the first half? So China is looking to produce semiconductors domestically, so because of that, has that been impacting your business? In terms of orders, yes, for Hitachi High-Tech, there's business for China, but we do not do anything to violate the regulation with respect to regulation in Europe or U.S., so... Well, I would like to respond to Ayada-san's question earlier by way of an answer. So Nanotech's orders and revenues, I think, will be worse in Q4. Year-on-year -9% by Q on Q starting from the fourth quarter. Fourth quarter number is the smallest, the worst, and then it gradually comes up thereafter. We're in this trap of year-on-year comparison, so that's one thing to say. Another point is in the forecast. Core Technology Solutions, in terms of revenue, it's growing 16% per annum, and the business is becoming on the order of JPY 100 billion with increased margin and a nuclear microscope with high market share. Analytical equipment and instruments, measurement instruments are growing, and so that is offsetting this decline. Just for your reference. Thank you very much. Thank you. We'll take the last question for today. Harada-san, please unmute and ask your question. Question? I have three questions. They are brief questions. First of all, regarding green, it has been mentioned today about the, the super cycle that is emerging. But this was being talked about from the past, in the first quarter to the second quarter. But what has changed from the first quarter to the second quarter? In the first quarter, short-term delivery projects will be promoted according to your views, and whether this... And you said that it can, it may not... We don't know whether it can be sustained in the second quarter. In the second quarter, the performance was very strong. From the first quarter to the second quarter, what has changed? Please focus on the change between the first quarter and the second quarter. That's my first question. Let me respond, answer. As I mentioned earlier, up until last year, from short-term delivery to long-term delivery, changes have been made from last year. The high voltage and direct current business has become very strong. The Europe-wide area, about 1,000 kilometers, can be enabled without any deterioration, and there is a strong demand for such a business because of the Ukraine war. Within Europe, the supply and demand has to be adjusted more efficiently within Europe. There is a possibility of obtaining electricity from overseas as well, which requires high voltage direct current transmission. This is the area that is growing significantly. So that's all. Question: So these are long-term delivery products, so is it going to be impacted, reflected this year? Yes, partially, in fiscal year 2023, but, more, in fiscal year 2024. Half, will be reflected in 2024. 2023 is about 20%, and then 2024 is around 50%, according to our plan. So from the past forecast, to this forecast, is this the 20% that is having the impact? Is that, a correct understanding? Yes. Now, second question, is regarding, the large-scale projects. The interest rate, the environment, could cause delays in project, in the area of renewable energy. I think that is possible. So within your company, you have a track record for large-scale projects, so I'm sure you have high sensibility, for, this area. So in terms of a possible risk, what are you focused on, and what kind of measures are you implementing to mitigate this risk? Please elaborate. Answer: Regarding the high voltage, the long-distance transmission is a established technology. From the time of ABB, it was world-renowned. So technology-wise, there is no risk, but it does involve the construction. Civil works could be subject to risk because it's going to be provided by external companies. Because of the inflationary environment, the labor is limited, so how much we can accommodate the EPC cost is a important risk that we have to bear in mind. And second, the interest rate is rising, and in fact, that is occurring already, especially in Europe. That means that the funding is conducted by the customers, and how funding is procured by customers will be impacted by the interest rate. That is... it can be imagined. So the EPC construction as well as the funding issue, funding costs for customers as a result of interest rate hikes, and that is being factored in. Question, last question is regarding Digital Front Business and IT Services. In the first quarter, the orders were very strong, and second quarter, 19% year-on-year increase has been achieved, so it is proceeding very successfully. Can you talk about the large-scale projects in what areas, and Financial as well as Social BU was very important in the first quarter, so please elaborate further. Kato-san will give you information. Based on information that is available to us, there is no change in terms of trend compared to first quarter. DX demand remains very strong. As mentioned in the PowerPoint presentation, finance, public sector are both very strong. In terms of IT Services, we have a high single company, and in terms of security as well as cloud, Lumada business is also growing. That is the reason why a double digit is maintained. So it's a continuation of the trend we have seen in the first quarter. Thank you very much. That's very clear. Thank you. With this, we would like to bring the Hitachi Limited web conference on the second quarter of the fiscal year 2023 earnings to a close. Thank you.