Hello everyone. I am Tokunaga. Thank you very much for taking time out of your busy schedule to participate in Hitachi Investor Day 2026. I would like to take this opportunity to express my sincere gratitude for your continued understanding and support of the Hitachi Group's business activities. Since last year's Investor Day, one year has already passed quickly. During this time, we have had the opportunity to discuss with many investors, not only in Japan, but also in North America, Europe, and elsewhere. Just last month, we were able to hold individual dialogues with investors in North America. The feedback received from the investors was as follows. "While we generally appreciate Hitachi's growth strategy, is the rapidly evolving AI a threat to Hitachi or an opportunity? Will HMAX continue to be Hitachi's growth engine going forward?" Today, based upon this interest and concerns from our investors, I will explain Hitachi's growth strategy toward achieving Inspire 2027 and ensuring sustainable growth beyond that. First, as CEO remarks, I will explain Hitachi's current situation and future management direction. Next, after the CEOs of the four sectors explain the growth strategy of their respective businesses, our CFO will discuss financial strategy and risk management. Finally, we have scheduled a Q&A session with everyone. It will be a long event lasting around three hours in total, but thank you for your participation again. Let's get straight to the presentation. In the CEO remarks, I will talk about these four points. Looking back at FY 2025, once again, it was an extremely highly uncertain year, marked by increasing geopolitical risks and rapid evolving of AI. Even under such a business environment, Hitachi captured the expanding needs for social infrastructure innovation, achieving record highs in profit, core free cash flow, and ROIC, enabling us to realize robust growth. In this uncertain business environment, the three CEO priorities presented at last year's Investor Day functioned effectively as a compass for our management. Regarding the expansion of the Lumada business, we accelerated our transformation toward achieving that targeted level of Lumada 80-20. The sale ratio of Lumada expanded by 11% from the previous year, and profitability steadily improved. In particular, the global launch of our recurring digital service, HMAX, drove this transformation. Regarding capital allocation, we strictly assessed returns and strategic fit, executing disciplined growth investment in focus areas such as energy and AI. Furthermore, in accordance with our policy, we implemented the largest shareholder returns in our history. EPS grew by 32% approximately year-on-year. Regarding the deepened governance, we responded swiftly to the materialization of geopolitical risks by strengthening our risk management. We also further strengthened our commitment to the capital market through initiatives such as introducing stock compensation of employee leaders and enhancing dialogues with the capital market. Furthermore, we are continuously working to strengthen the supervision of execution by the Board of Directors. Through these initiatives, the four sectors steadily captured growth opportunities in FY 2025, leading to significant growth in our backlog. The backlog at the end of FY 2025 grew 24% year-on-year, reaching a total of JPY 21 trillion. This continuously expanding backlog serves as a solid revenue foundation for sustainable growth. As I explained, FY 2025, the first year of Inspire 2027, has been a smooth start. However, we are not happy with the status quo, because for Hitachi, a new and massive growth opportunity is unfolding right before us. That is AI. Will the rapidly evolving AI destroy existing business models? Or will it disrupt the IT service businesses? We often hear such concerns. However, my answer is clear. AI is not a threat to Hitachi. Rather, it is the greatest opportunity to discontinuously accelerate Hitachi's growth. I'll explain the reasons. In Hitachi's focus areas, energy, mobility, and industry initiatives to improve productivity and create innovation through the implementation of the physical AI are currently expanding rapidly among our customers. On the other hand, the implementation of physical AI means that AI steps out of the cyberspace to directly impact the real world. Due to an AI error, facilities and equipment could potentially stop. Product quality defects might occur frequently. In other words, physical AI inherently carries significant risks, and safe implementation can be said to have a high level of difficulty. However, these very characteristics of physical AI brings a massive growth opportunity for Hitachi. This is because the safe implementation of physical AI requires the advanced integration of all technologies and expertise across IT, OT, and products. This is precisely the area where Hitachi can fully leverage its strength, having supported mission-critical social infrastructure for many years. Furthermore, our ever-expanding backlog, which has reached JPY 21 trillion, continues to provide Hitachi with implementation fields for physical AI, solidifying our sustainable growth. Additionally, in the digital area shown on the top right of the slide, we are facing challenges brought about by AI. The replacement of simple tasks, such as coding and module testing, by AI is progressing rapidly. However, more than that, the demand for modernization to make customers' existing IT system assets AI-ready is now rapidly expanding. Here, the 15,000 operational IT systems that Hitachi has developed to date serve as a massive market to which we have prioritized accesses, cementing our future growth. How do we grasp these growth opportunities brought about by AI? I will elaborate on this point a bit more. First, the energy, mobility, and industry business areas. Hitachi will continuously update social infrastructure and grow through the implementation of physical AI in mission-critical areas where we can fully leverage our strengths by highly integrating all technologies and expertise in IT, OT, and products. There are two growth approaches. First, Hitachi possesses a massive product installed base that continues to expand, supported by robust demand for infrastructure renewal. We will use this installed base, which only Hitachi can access, as an implementation field for physical AI, advancing on-site operations and maintenance to provide value to our customers. As of the end of FY 2025, HMAX, which recorded JPY 300 billion in sales and at an EBITDA margin of over 20%, proves Hitachi's competitive advantage in physical AI implementation, and we can expect high growth to continue. Secondly, for our customers operating infrastructure businesses such as power, railway, and industry, continuous advancement of operation is absolutely required to maintain and improve their competitiveness. On the other hand, many customers are facing the major challenges of how to incorporate accelerating AI technologies into their businesses. To address this big challenge, Hitachi will respond with our physical AI, FDE, Field-Deployed Engineer team, comprised of IT, OT, and product engineers. Hitachi's physical AI FDE team will embed themselves in customers' operational sites and advance implementation of physical AI. Also, the important point here is that expertise in data models cultivated on-site by FDEs will be consolidated into HMAX and rolled out horizontally to other industries and customers. Through this, we aim for scalable growth that is not labor-intensive. Next is the digital business domain. Hitachi will promote AI transformation of customers' operations through the modernization of large-scale IT systems asset to drive growth. Here as well, there are two approaches to growth. First, Hitachi has worked on many IT system developments together with our customers. The number of such systems currently in operation alone reaches 15,000, and now the modernization demand to make these IT systems assets AI-ready is rapidly expanding. This is because incorporating the latest AI technologies into the IT system that support customers' operation to enhance business processes and service has become an urgent priority. In the DSS sector, our 35,000 system engineers in Japan are using AI to improve their own productivity and meet our customers' modernization needs. As of the end of year 2025, the adjusted EBITDA margin for domestic IT services in the DSS sector exceeds already 18%, and modernization business is driving this profit growth. The growth opportunities brought by AI do not stop here. Secondly, customers are currently seeking a partner with expertise in both the latest AI technologies and mission-critical AI system development to support their AIX or AI transformation over the long term. Hitachi will meet customer demand through our FDEs, who possess advanced AI technologies and Hitachi's unique knowledge, working in collaboration with AI ecosystem partners such Anthropic, Google Cloud, Microsoft, and OpenAI. Hitachi's FDEs will work as one with the customer's IT department together to advance highly reliable and high-quality AIX. Therefore, we will feed these results back into Hitachi's priority assets such as Velocity AI, HARU for AI, and HMAX, and utilize them for other customers' AI as well. Toward improving our corporate value, we will also further evolve our management. The three pillars of the CEO priorities remain unchanged for FY 2026. Amid a drastically changing business environment, we will further strengthen our execution capabilities, balancing out insatiable challenge for growth with disciplined management. Regarding the Lumada business, we will further accelerate the expansion of HMAX. Meanwhile, there is no end to our portfolio reform, we will continue to pursue constant improvement. For capital allocation, we will accelerate disciplined growth investment while strictly adhering to our policy. Regarding the deepening of governance, we will further advance our risk management and deepen our One Hitachi management approach toward creating Hitachi's unique value. Finally, I will explain Hitachi's aspiration beyond Inspire 2027. Hitachi is currently focusing on four businesses: energy, mobility, industry, and digital, we are striving to transform into a digital-centric company. The JPY 21 trillion backlog built up during this process is not merely a balance of orders. This will be transformed into a massive digitalized asset for Hitachi to implement AI, collect data, and create new value moving forward. We will evolve digital services provided by Hitachi, such as HMAX, on this digitalized asset into an OS, operating system, that is essential for the stable operation of social infrastructure. We incorporate it as a foundational OS for customers to operate social infrastructure. It drives further data accumulation, which in turn improves AI accuracy and further enhances the value proposition as an OS. As a result, this also leads to the construction of strong barriers to entry. Through the provision of this social infrastructure OS, I will transform Hitachi into a company that generates recurring revenues with high profit margins and stably over the long term. Starting with robust products and IT systems, we will generate recurring revenue through services that fully leverage domain knowledge and AI, becoming a completely new digital infrastructure company. This is the vision of Hitachi that I foresee beyond Inspire 2027 and pathway toward further corporate value enhancement. I sincerely ask for your continued understanding and support. After this, Andreas will explain our growth strategy for the energy business. Good afternoon, ladies and gentlemen. Thank you for coming. In the next couple of minutes, I will guide you through the presentation of the energy sector. We will cover a review of the last fiscal year and an update on the progress on Inspire 2027. We will talk about the market environment, our strategic priorities for the next couple of years, and our future ambition and conclusion. Last year, we have delivered record high orders, revenues, and profits, which has led to the decision that we have upgraded our plan for Inspire 2027 going forward. Of course, we have established a service business unit inside of Hitachi Energy, and we will come to that. Our priorities for further growth and transformation are continuous solid execution of our order backlog, generated record high revenues going forward, and delivering more profits. If you're looking at our strategy going forward, it's based on three pillars: strengthen the core, accelerate strategic growth, and leverage AI for our businesses. Strengthen the core covers operational excellence, so how we are producing our goods and services for our customers, continue investment into capacity expansion, looking for M&A and partnerships going forward. Accelerate strategic growth means, yes, we want to become number one in service growth. We want to play a role in areas which have extreme growth, like data centers going forward. Leveraging AI and digitalization means how we can improve our operations and our internal processes and leverage AI in that thing. Of course, looking at SMRs, which is a booming business. Coming to the market environment. The market environment is very favorable. If you're looking at the energy consumption worldwide, the primary energy usage is continuing to grow with the GDP, but the underlying electricity consumption is growing much more. You see it's more than doubling up to 2050. This drive for electricity and for electrification is, of course, based up by figures of investments. If we look at the investment climate in the last 10 years, you see that investments in fossil like gas, natural gas especially, and coal, et c, are going down. Investments in renewable, electrification, and grid expenditure are going up significantly. You see the numbers, renewables have doubled. Nuclear has started to grow as well, 1.7x. Electrification, 2.4x. Of course, the economic and political environment we have on our planet at the moment, which is quite volatile, I would say, is driving that the space of renewables and nuclear is even growing more than we have assumed. You see on the right upper part that the participation in the electrification of renewables and nuclear is growing extremely. That's good for our business because the components we are delivering, which are needed for this electrification, that's what we are doing, and they are growing exceptionally well. You see transformers will triple in the next couple of years, from 2020- 2050. HV switchgear, three to five times. HVDC links, quadruple. Battery electric storages, more than 10 times. STATCOMs, 5- 10 times because power quality problems are going hand-in-hand with renewables. Power electronics, six to eight times. Software solutions will become more important to balance the grid and maintain the volatile generations. Service, more than six times because we have aging infrastructure, we have less and less people for our clients to work, SMRs will grow five to seven times. That's of course reflected in our market projections. If you look at the left side, Hitachi Energy market in billion U.S. dollars. From 2017- 2021, it was rather flattish in an area of $100 billion, now it's growing significantly. It will reach in 2030 around $350 billion, so more than triple. Nuclear is just at the brink for these investments. The lowest values we have seen in 2005 with $11 billion investments into nuclear technology. Now it's at $90 billion in 2030. Of course, we have seen already the first FID for an SMR in Canada. This business will definitely take off. What are our strategic priorities? We are number one with our installed base. We have installed more than 500,000 assets in the electrical area over the last decades, $240 billion. We are not number one in the service area. It's our goal to be that's why we have founded the service business unit last year, we will report about our first successes. In nuclear, we are strong number two in the Japanese market. Two-thirds of the boiling water reactors are in our portfolio, all of the generation 3s of the advanced boiling water reactors have involvement from Hitachi. In the other areas, transformers, high voltage grid integration, and grid automation, we are clearly number one in the industry. Clearly from number of volumes. In some of the areas, we have nearly the double installed capacity of the next competition. Of course, we have grown from 2021- 2025, around 20% CAGR, far beyond the market. We have definitely a very good global footprint, and we are, in some of the technologies, a clear technology leader. If you look at our performance from monetary point of view, in 2020, we have $9 billion revenue. We closed the books last year, 2025. We have $20 billion, mainly based on capacity expansion and better services. We have upgraded our projections for the year of 2030 to $36 billion revenue. If you talk about the revenue growth, that's one thing. If you look at the backlog below that, you see a slight different or an interesting picture. In 2020, the backlog ratio to revenue was around $1.1. $11 billion order backlog, $9 billion revenue. In the last years, we have recorded record order backlogs. Last year, we have closed the book with $20 million revenues, but with $60 billion order backlog. In 2030, we expect on a revenue level of $36 billion, more than $ 100 billion order backlog. This does not include capacity reservations and framework agreements. That means the order backlog has changed in its nature. It's more complex. It's more forward-looking. We have clearly a visible line now for two, three years or sometimes six years based on our customers are now ordering equipment way ahead of time because they know that supply and demand is not in balance, and they want to select their slot for their products and services. But that means that if you're looking ahead to a fiscal year, the majority of our revenues are coming from order backlog, though we know nearly for the complete year what we have to produce, for whom we have to produce it, where we have to produce it, and how we have to produce it. Only a small part is book to bill. We have to continue in our strategy to deliver the order backlog and focus on capacity expansion and other things. Coming to capacity expansion, we have already invested JPY 3 billion from 2020- 2023. We are in the process to invest another JPY 6 billion until 2027. You see on the map, it's a global investment. We are investing globally in all places where we have a footprint. At the moment, we are investing currently in more than 40 brownfield and greenfield factories. Brownfield means we are expanding an existing factory to the maximum capacity while we are producing. We are producing and building, we started some greenfield factories. I think it's clear to say we follow a clear strategy here. We only sell to our customers what we have and what we can produce. We are not canceling orders for our customers, we are only investing into new factories if we have a bankable business case, if we have enough backlog to justify an investment and make it bankable. If I'm telling you that the order backlog conversion into revenue is the key to success, of course, operational efficiency is our internal key to deliver revenue, we follow here a one single approach, we started years ago to organize all our activity based on one single ERP system called Raver. Raver is online since two years, the last year focused very much on drive synergies and cost improvements out of Raver. What means one single ERP? It means that every factory, every country, every project, every customer, every supplier is in one big database where we have access to the data. We know what is happening, and we have used this for improving our internal processes. That has driven results of $150 million last year as productivity gains, which has hit the bottom line, and will continue to hit the bottom line. The next phase was to using that system to de-risk our supply chain. We all know that the world is very volatile. Every day is something happening, and we started to connect a system called Resilinc, a product which puts us on notice for every natural disaster, tsunami, volcano, for every closure of any transport way, like Suez Canal or Strait of Hormuz, and directly informs us. We know what kind of logistic chain is impacted. We know which customer, which factory, which route we can optimize or where we can act before we really see the impact. That flexible rerouting and supply has generated, of course, more revenues because we could deliver faster. That has hit the bottom line with $200 million bottom line effect last year, and that will continue. Now we are starting the first level, process optimization. We're changing our manufacturing approach from managing to order to managing to stock to cut factories delivery times, reducing lead times and optimizing our portfolio. We started a company-wide end-to-end process digitalization using Celonis and AI to look which processes can be improved, and we are using embedded AI agents to make our internal processes more efficient. Why is it important? If we are growing around 10%-15%, of course, we don't want to grow our general and admin expenses at the same magnitude. We want to keep them rather flattish, and that will have a bottom-line effect of around JPY 250 million going forward until 2030. Overall, if you make the numbers, operational efficiency and AI will drive a cumulative profit impact of more than JPY 2 billion by 2030. With the remaining impact on our revenue generation, but it's not coming from backlog. Book and build, we are focusing on high-growth segments. Like in service, where we have grown our business 20% last year, focusing on data center, fast-growing, fast execution, 150% growth last year. Selling innovative products like EconiQ, with more than 1,000 products sold, and focusing on SMEs. If you're talking about service is important for us because we have the interest installed base in the industry, our ambition is and was to double our service impact and service revenue until 2035 to more than 30%, which means that in 2030, we have to drive around JPY 6 billion-JPY 8 billion revenues in service organically and unorganically. Last year, we established a business unit. More than 6,000 colleagues joined the new organization. The business unit is up and running. The processes are working. We have grown the business last year organically around 15%. If you add the Chemco investment with equity accounting, 20% growth. Fully in line with our business plan expectation. Of course, we have announced HMAX last year in March on the CERAWeek. Why HMAX is important? HMAX is an enabler for service revenue recognition and enablement in Hitachi Energy. We can help to plan, predict, and prevent, and that's the base for customer intimacy and customer retention. Just to give you one example or two examples, Tata in Thailand, we have sold a [Zensoh] monitoring system which reduced the failure rate of 60% by just knowing what is going on. Second example, ERG in Italy, a digital-enabled service agreement where we can reduce the time on site by 35%, or a digital twin for an HVDC link between Germany and Sweden, where we can react much, much faster to bring any line back online and saving money for our customers. The other high-growth areas, data center. Driven by a high demand for AI data center worldwide in Americas and in Asia, we have been able to nearly double our revenues in data center, and we're projecting a growth in the area to four to five times. We are uniquely positioned due to fast delivery times. We have started to standardize our offerings, to containerize it, that we can fast be delivered and produced. We are very flexible with that. Of course, we have started to look into solid-state transformers, 800 volts DC or other voltages required to really fast and space-consuming solutions to be deployed. We have a global footprint and the capacity expansion is helping for that. If you talk about numbers, we have started in 2025 with a profitability of 13.4% EBITA. Of course, the volume leverage, significant capacity expansion, the high growth markets, they will lead us to our margin bracket in 2030 to between 16%-20%. Even if we spend a little bit more on R&D to keep our leadership and technologies, we will be in that margin bracket. Our assumption at the moment is that in 2030, we will hit the upper end of this profit corridor, as announced. Coming to the conclusion, on that slide you see the overview of the figures as presented, just for your information. The energy sector at all is projecting a CAGR of 14% going forward, so being in line with the updated Inspire 2027 and an outlook for 2030. Our EBITA in percent will grow into an area of 14%+ as forecasted and grow further, and we're striving to reach an ROIC of 25% or more. With that, we have significant market tailwinds. We have a very favorable environment, which is driving our profitable and sustainable growth and profitability. We have high capital returns and definitely value creating. Thank you very much. I think I'd like to announce two things before my next speaker. If you're interested in the Hitachi Energy business, there will be a Capital Market Day in autumn this year. We will let you know when and where. With that, thank you for your attention, and I hand over to Giuseppe. Great job. Thank you, Andreas, and thank you for introduction. Good day, everyone. I am pleased to present our mobility strategy today. We are starting with the highlights in actual 2025, then we are going to talk about the mobility market. Most important part will be point number three, the business update. Then medium-term plan with financial for Inspire 2027 and the long-term outlook 2030. Going to the highlights 2025, we see on the left our achievement. We delivered to expectation. We did our budget. If you look at the right, we see the main financial performance highlights. Revenue growth, plus 13% year-over-year. Profitability improvement, 0.4 point percentage, and book- to- bill, 1.2x to the revenue. We have some key important achievement on key project deliveries across London, high-speed trains, Baltimore, [Sennin], but also major order intake like Turin, like Pittsburgh, like U.K., or Taiwan Signaling. Also going in the next page, when we are talking about digital HMAX, we see contract signed with Tobu Railway in Japan, Turin Metro Line 2, or Copenhagen. You can see there that last year, the same presentation, we declare 2,000 trains already having our HMAX platform. This year, we can have 2,500, of which 35%+ are with not Hitachi fleet. We have been investing on digital growth. On the left, the acquisition announced back in summer last year. It is Omnicom. It is a very high-tech company for sensor technology. They have laser sensor, LiDAR sensors. We want to create a strong foundation for our HMAX platform. So we want to have digital proprietary technology to support good quality of data. On the right, it is Hagerstown plant. It is the footprint in the U.S. It is a combination of the expertise of One Hitachi. It is Hitachi Digital, it is Hitachi Connective Industries, Hitachi Energy, all together to have a state-of-the-art plant. If give me a couple of minutes, I would like to show you a quick video. Please, the video. [Presentation] Thank you. Two years ago, we also announced the acquisition of Clever Devices. It's a company based in the U.S., $ 220 million+ revenue, over 600 employees. It's a leading provider of software and technology solution for Intelligent Transportation Systems, serving mass transit agencies across North America and globally. It's a very important step into expanding HMAX, because we do HMAX on rail. Clever Devices is doing HMAX on other kind of mobility, like buses. It's an expansion of HMAX, but it's also our firm step into multimodality. Combining the data of rail with other mass transit transportation, we can also have access to much wider range of data and go really into the multimodality and explore different stream of revenues. Let's go to the market overview. We believe that the future of mobility, it's at the intersection of three powerful trends that are transforming the mobility market. There is more volume, which is driven by population growth, but also the energy cost that's increasing. There is a wider sustainability concept, which is not only reduction of carbon footprint, but it's also more affordable, more mobility solution, and the digitalization is driving multimodality. If we look at our market here, we see that the market, it's expected to grow at 4% a year across all line of business. We see in blue our domestic market, in which we are building and growing on our normal presence, but we are also investing in the green area, especially Germany, East Europe, where we are leveraging the GTS presence, as well as the Middle East, where we're increasing the mobilization. Going to the business update. We have seen, we have three microtrend. Now we are a sustainable digital global mobility player. We're delivering sustainability, we're driving scalable digital solution, and we're expanding to global mobility. To do that, we have three key business drivers. On the left, signaling. After the acquisition, two years ago, of Thales Ground Transportation Systems, we are a global full-range provider of signaling system. In the middle, we have our rolling stock. We are also a global full-range provider of rolling stock. On the right, it's our new leg, our new business stream. It's digital, where digital products and services based on HMAX or new solution like autonomous driving or revenue collection, are creating a new area for our business unit. By going a little bit more in detail with this business portfolio, and we can have a look at the revenue mix. Signaling now with the acquisition, it's at 52% of our revenues. Rolling stock is 37%, and digital, it's already at 11%. By looking at the lower side of the slide, we can combine the revenues that are recurring or software-based that are now at 76%. Last year, at Investor Day, we said 74%, it's two point more. Also, if we see on the top right corner of the ball, we see how strong we are in positioning. We are strong on signaling, we are strong on rolling stock, but less, and we definitely are strong in digital. Our projection for the next year, it's keep on investing and growing in signaling, growing in rolling stock in a selective way with more high speed in which we have a strong positioning, keep investing in getting more orders on service, and of course, digital, which is a very important part of our strategy. In order to support this business direction, we have key action pillar for sustainable growth. We have geopolitical tension, we have market penetration, operational transformation, but I would like to concentrate on what is very important. On one side, the backlog execution, because we have a strong backlog. On the other side, the big change that agentic AI, it's bringing to our processes or what we can offer in terms of digital mobility. In terms of backlog, we have a record backlog at JPY 7.1 trillion. You see the dark part of the signaling, which is increasing compared to last year. Also, we have a 40% of a well-balanced backlog, which is service backlog. On the right, it's the timing of the revenue recognition. We can see that 90% of the revenues for 2026 are already in our backlog. Also 2027, it's almost there. From 2028 onwards, 50% it's already coming from service. Profitability as well, it's growing. We achieve a 20.3% profitability. We have a plan for this year, 21.4% and 22% in 2027. We are implementing agentic. We have already 90 AI agents. That's only related to some part of engineering. We can get not only productivity, but faster time to market and also an improved product performance. There are some example I would like to stop on how we're doing the bidding documentation and preparation, how we do diagram generation or software coding. This is a big help in our processes. Also we are offering and our value proposition to customer, it's really important when talking about digital mobility. We've seen before the three area of rolling stock signaling, multimodality. We have data, we have domain knowledge, and on the right we have a big expertise coming from Hitachi Digital and digital service. OT and IT are becoming really strong because HMAX turn million of data point into actionable insight that reduce cost and enhance passenger experience. We have an advantage here. The same slide, it's telling us why we are different from other industries or other players. We have a physical layer, which is the OT part. With proprietary sensor technology. Told you about Omnicom. We have operation integration, domain knowledge. On the right, we have the digital layer, like digital expertise, language model, visual language model coming from Hitachi Digital. At the bottom, we also have the architectural layer. We are not the AI provider. We have much more. We own the data, we own the competence, we don't own the physical layer and the architectural layer with cloud architecture, cyber capability, or even internal data center. This is a big advantage and a differentiating factor. AI, it's bringing a very big benefit on our products. That's an example of physical AI. From legacy traditional tram, you see on the right, what's new, an autonomous tram. We are implementing physical AI to bring a full driverless operation. I want to show you a few seconds of what we can see from inside the driver cockpit. You see how our cameras and sensors are digitalizing the reality in order to be able to be fully autonomous with a full implementation of physical AI. Let me say also that we can stay at the edge of the technology thanks to our expertise in vehicle and signaling, but also thanks to One Hitachi capability and large framework agreement coming with NVIDIA for edge computing and deep learning, with Google Cloud for AI training, data generation, cybersecurity management, or with Microsoft with GenAI, agentic AI or digital engineering. The market, it's growing. The total assessable market, it's about JPY 3 trillion. As Tokunaga-san said, half of it's maintenance optimization, but also energy efficiency or, as I said before, advanced mobility like autonomous driving. The pipeline of opportunity is growing. You can see that we have over 100 identified opportunities in 20 countries. Last year, we had a pipeline of JPY 200 billion. This year, we're working a pipeline of JPY 600 billion. This is a momentum we're building this year. Last year was the first year. Now we're really getting into the sales pipeline of HMAX. Let's have a look at the figures. We've been growing steady in both revenues and profitability. At the bottom, we have our profitability. We were 5.5% in 2022. We closed 2025 at 9.2%. We have a plan for the year, 9.9% and 11+% in 2027. To achieve the 11%, we have, as we have seen, margins coming from a better backlog. We are synergies and other efficiencies. We are completing the acquisition of Thales GTS. There are JPY 50 billion coming from the synergies of GTS. We are investing on new platform, and a big part, it's coming by improvement driven by digital and the mix of revenue that we have seen at the beginning with the three business lines. I want to talk also about investment, cash conversion cycle and return on invested capital. We're growing our investment. We're preparing the next generation platform. Still, we want to contain investment. We don't want to go over 3.5%-3.6%, but it's important we maintain the edge in technology. In the middle, we have a strong cash management. We were 60 days last year. We reduced 10% to 54.3 days this year. We have the target at 37 days. The ROIC, it's also growing. I have two lines here. The blue one, it's without the PPA coming from acquisition, and the thin one, it's with the PPA. Of course, the two lines are converging. In two years' time, they will be almost the same. What is important is to see the run rate. In 2025, we close at 12.5%, which is higher than our expectation. This is the run rate, and that's why in the dotted line, we are changing our outlook because we are improving our projection of the ROIC due to the good performance of the last year. Going to the outlook of 2030. We have a 10-year strategy, and now we are going beyond. We started at JPY 353 billion. We grow 3.5x in 2025. We have the target at JPY 1.6 trillion for 2027 and JPY 2 trillion, as said last year, for 2030. We've been growing organically, but also through acquisition, Breda, STS, GTS, and in green, what we said before, Omnicom and the Clever Devices. We're quite proud about what we were. We were traditional domestic grade OEM. Now we are global player in digital mobility. We are planning the next step, which is most likely an acquisition that we are working on. Of course, profitability is important. To achieve an ambitious target, we have two important steps. One, our cumulative saving of over JPY 60 billion by 2030 coming from AI implementation, also with a strong cost containment plan that already started this year and that we are implementing. We expect the full benefit after 2027. Also growth through investment in new digital capability. As a conclusion, we have a strong foundation. We are a sustainable digital global mobility player with proven execution and global scale. We have a market with long-term tailwinds supported by transformation in structural mobility. As a strategy, we're accelerating portfolio shift to signaling high-speed train and digital service and recurring revenues. We have execution, which is very important. We have key strategic action pillar in the way to drive sustainable growth in a fast-changing market and transform record high backlog. Innovation, it's so important. We want to be at the edge. We're driving the next generation of mobility through digitalization, multimodality, autonomy, agentic AI. Our outlook is a trajectory to sustainable, profitable growth through 2027 and beyond. Thank you very much. I leave the stage to my colleague, Amiya-san, for the Connective Industries. Thank you very much. Thanks, Giuseppe. Thanks a lot. Thank you, Giuseppe. Hello, everyone. I am Noriharu Amiya, CEO of Connective Industries Sector. I will explain the progress of Inspire 2027 in the CI sector, as well as our business strategy. Before getting into the main topic, let me briefly introduce my background. I started my career in the railway business. After serving as COO of the Rail Business Unit, head of corporate strategy at headquarters, and CEO of the Building Systems Business Unit, I've been leading the expansion of digitalized assets and HMAX as COO of the CI sector since last fiscal year. Starting this fiscal year as CEO, I will drive business transformation globally through physical AI. I look forward to your continued support. I will talk based on the following agenda. I will begin with a review of our performance. In FY 2025, the Lumada revenue ratio increased by 9 percentage points year-on-year to 43%, and strong Lumada growth driven by AI demand enabled us to achieve an adjusted EBITA margin of 11%. Three business areas showed particularly strong growth. The first was the facility business. In addition to the expansion of service businesses such as building systems and industrial equipment, growing data center demand provided further momentum, resulting in revenue growth of 23% year-on-year. The second was Semiconductor business. Supported by expanding AI demand, revenue increased 26% year-on-year. Diversification of our semiconductor customer base also contributed significantly to performance, enabling the business to evolve into a more resilient and stable growth platform. The third is Life Science business. AI-driven innovation in diagnostic and pharmaceutical processes advanced significantly. Shipments of diagnostic instruments reached a record high, and the biopharmaceutical maintenance business nearly doubled compared to FY 2023, delivering steady growth. Based on this progress, I will now explain the vision we have for the CI sector. The CI sector aims to become the leading company in physical AI businesses for industrial domains. Our products are evolving from connected products into digitalized assets, generating data that has never existed before through advanced, highly reliable control technologies and sophisticated measurement technologies. By combining the operational data generated in the field with deep domain knowledge gained through hands-on experience and applying AI through our digital service platform, HMAX, we will autonomously optimize operations and deliver customer value through physical AI, including shorter time to market. I will now explain why physical AI serves as the growth model for the CI sector. For example, on the right-hand side, in semiconductors, validation time from development to manufacturing has increased by 50%, showing a more complex structure. While the number of genetic tests and diagnostic methods have expanded nearly 189-fold, the complexity and sophistication of technology are accelerating dramatically. This means that shortening time to market and maximizing ROI have become challenges that customers can no longer solve on their own, making collaboration with partners increasingly essential. To address these challenges, strong products generate highly accurate data. Data from multiple products is integrated and analyzed, and insights are fed back into operations. By continuously enhancing and evolving this physical AI capability to maximize efficiency, Hitachi is uniquely positioned to deliver this customer value. I will now explain in greater detail the CI sector's business strategy based on this physical AI-driven growth model. We will concentrate our management resources on four areas where AI investment is particularly strong: facilities, semiconductors, medical diagnostics, and pharmaceutical manufacturing, and drive growth through our physical AI businesses. This slide shows market growth rates through FY 2030 on the left and the CI sector's growth rates on the right. We intend to outperform the market in all four focus areas. Starting with the next slide, I will introduce our specific physical AI initiatives in each of these priority business domains. The first focus area is facilities. In this domain, we are targeting a revenue CAGR of 16% through FY 2030. Our strength lies in our powerful digitalized assets, including elevators and HVAC equipment, supported by one of the world's largest connected installed bases of approximately 650,000 elevators. Building on these assets, HMAX for Buildings, which is already deployed in Japan, China, and across Asia, will optimize building facility operations by improving not only operational and maintenance efficiency, but also overall building energy efficiency. Through HMAX for Buildings, we will continue delivering a wide range of value to customers such as Mitsui Fudosan and Nomura Real Estate. In addition, as announced yesterday, we will connect HMAX for Buildings with approximately 3 million HVAC units owned by our co-creation partner, Bosch, and provide energy optimization services on a broader scale. The second focus area, semiconductor manufacturing. In this field, we are targeting a revenue CAGR of 15% through FY 2030. Hitachi's CD-SEM commands approximately 76% of global market share and offers world-leading 2 nm measurement technology, making it the industry standard for leading-edge semiconductor processes. Centered on CD-SEM and complemented by X-ray inspection systems, we are working with manufacturing equipment partners to build a physical AI platform that integrates deposition, lithography, and etching, the core processes that account for roughly 80% of front-end semiconductor manufacturing. By progressively deploying solutions such as our already developed ExTOPE IoT integration platform, we aim to reduce development time by approximately 50% while achieving high equipment utilization and improved yield. Through the expansion of HMAX, we will accelerate collaboration with Samsung and Intel, which we recently announced, and expand our physical AI business across global semiconductor manufacturers. The third focus area is diagnostics. In this domain, we are targeting a revenue CAGR of 11% through FY 2030. Through collaboration with Roche, Hitachi's clinical chemistry and immunoassay systems hold the number one global market position. Likewise, through collaboration with Thermo Fisher, our genetic testing systems also hold the global number one market position. Leveraging these world-leading digitalized assets, we will further accelerate collaboration with partners in molecular cancer diagnostics. Through HMAX for Healthcare, which integrates data from clinical chemistry and immunodiagnostics, genetic diagnostics, and molecular cancer diagnostics, the three categories that account for roughly 80% of the in vitro diagnostic market, we will enable more accurate treatment selection and optimize healthcare delivery. We will expand the delivery of this value to customers, including Seegene Medical Foundation in Korea, as well as testing laboratories and hospitals around the world. The fourth focus area, pharmaceutical manufacturing. We position this as our next major growth engine and are targeting the highest revenue CAGR among our focus areas at 17% through FY 2030. By combining AI-driven analytics and simulation with bioreactors and line building capabilities, Hitachi enables faster scale-up from process development in step one and stable operations through AI-based maintenance planning in step two. As a result, we have made it possible to shorten the scale-up period from process development to mass production by more than 30%. We are now further expanding our digitalized assets by leveraging spectroscopic analysis systems capable of detecting abnormalities in cells and DNA at an early stage. Through physical AI, we improve quality and yield across the entire manufacturing process. HMAX for Biopharma provides seamless support from lab to fab, breaking down silos between processes and delivering transformative value. Through collaboration with Daiichi Sankyo, Fujifilm, and other customer base of approximately 350 pharmaceutical companies, we will expand our physical AI business across the pharmaceutical industry. The key to accelerating the growth of our physical AI business is the edge AI semiconductor developed by Hitachi. Compared with state-of-the-art GPUs, it delivers more than 10 times greater power efficiency, eliminates the need for dedicated servers, and enables the intelligent operation of a wide range of industrial machines and robots. We will leverage this edge AI semiconductor through three approaches to expand our physical AI business. First, we will incorporate it into our world-class products, further strengthening them as next-generation edge AI products. Second, we will implement the semiconductor in our partners' products as well, deepening co-creation and expanding customer value through physical AI-enabled collaboration among multiple products. Third, we will accelerate our customer zero initiative by using the semiconductor to transform our own manufacturing processes and then deploying the validated results to customers. To further strengthen and add intelligence to the products that will drive the expansion of our physical AI business, we will advance R&D through three strategic pillars and significantly increase R&D investments to JPY 370 billion over the three years through FY 2027. The first pillar is the advancement of measurement technologies. We will develop X-ray metrology for semiconductors and advanced materials and new laser spectroscopy technologies for pharmaceutical manufacturing, thereby strengthening our digitalized assets in measurement, analysis, and diagnostics. The second pillar is strengthening the enablers of physical AI. We will expand the lineup of edge AI semiconductors that bring intelligence to products while accelerating collaboration with robot manufacturers to enable autonomous robotics. The third pillar, evolution of digitalized assets in the facilities domain. For data centers, we will strengthen high-efficiency UPS systems and air-cooled chillers while promoting circular economy initiatives through the expansion of green products. By FY 2030, the CI sector aims to generate all of its revenue from physical AI businesses, achieving both sustained high growth and high profitability while realizing Lumada 80-20 portfolio. To firmly establish the expansion of the physical AI businesses centered on the global top products discussed today, we will make focused investments, including M&A, in expanding our measurement portfolio and strengthening OT capabilities. We will also invest in creating the next generation of global top products in growth areas such as data centers, robotics, advanced materials, and the circular economy. At the same time, as part of our portfolio transformation centered on physical AI businesses, we announced in April this year the transfer of our home appliance business to Nojima. We will continue to sharpen our business focus and maximize business value through selective investment and portfolio optimization. Finally, I'll conclude with a summary. By accelerating the four initiatives shown here, including portfolio transformation centered on physical AI businesses and the expansion of our global operations, we aim to achieve revenue growth of 6%-8% and adjusted EBITDA margin above 13%, a ROIC of 11%-13%, and a Lumada revenue ratio of approximately 50% by FY 2027. Thank you very much for your attention. Mr. Abe will present the strategy for the Digital Systems & Services sector. Abe, the floor is yours. Hello, everyone. I am from DSS, Digital Systems & Services. I'll explain the strategy of the DSS sector. The DSS sector achieved record high profit in FY 2025. As President Tokunaga emphasized at the beginning, AI is the greatest opportunity for Hitachi. Today, I'll explain the specific strategies and the roadmap for how the DSS sector will achieve highly profitable and sustainable growth as we enter the full-fledged AI era. I will explain according to the following content. First, progress of Inspire 2027 and current performance. Next, changes in the business environment and growth market due to AI. From chapter three onwards, I will explain specific strategies and investment. In FY 2025, the strong domestic business drove the overall performance of the DSS sector, setting a new record high of the profits. The adjusted EBITDA margin was 15.5%, an improvement of 1.3% from the previous year. Furthermore, the Lumada revenue ratio also achieved a double-digit growth for both the sector and entire company. This indicates that the business is transforming into a high value added model, further improving profitability. In addition, the backlog has accumulated to JPY 1.8 trillion, serving as a positive factor for future growth. Regarding the domestic business, this is the pillar of profitability of the DSS sector and a stable foundation for growth. In FY 2025, we achieved an adjusted EBITDA margin of 18.4%, a top level profit margin among domestic IT service vendors. In particular, large scale projects of JPY 3 billion or more expanded significantly, increasing by 87% year-on-year. Our customer base in the mission critical domain supports revenue growth. In addition, the social sector is driving growth, with the defense sector expanding significantly in addition to public power in railway sectors. These mission critical domains with high entry barriers are further strengthening our competitive advantage. Next is the GlobalLogic, which drives Hitachi growth globally. Currently, GlobalLogic is shifting its business portfolio towards the rapidly growing AI field. The synergy created by combining their outstanding digital engineering capabilities with Hitachi's OT end products has expanded significantly, increasing by 73% year-on-year. In addition to IT consulting, examples of solving issues in the social infrastructure domain digitally are expanding, including in the energy, railway, and building equipment maintenance sectors. GlobalLogic is maximizing its value as the core engine, accelerating digital transformation or DX across the entire Hitachi Group. From here on, I'll explain the growth strategy of the DSS sector. First, the challenges in the business environment driven by AI. AI is bringing about major changes in the state of the IT services industry. It is a fact that automation is progressing through the use of AI in some operations. That is not the essence. The essence of AI is that it is creating new markets. In other words, it is bringing growth opportunities. The area of modernization of AI services where AI is implemented in complex corporate systems to lead to business innovation. The area of so-called physical AI, which utilizes AI while ensuring reliability and safety in systems that cannot be stopped, such as social infrastructure. In these fields, new value creation in markets driven by the impact of AI are rapidly expanding. The important thing is who can realize value and convert it into profit in this market. It is said that a new market worth JPY 100 trillion will be created by 2030. Hitachi is in a position to demonstrate its strength in this field, and we believe so as well. We consider this is not mere change, but a clear growth opportunity for our company. In the DSS sector, we are focusing on two growth markets created by AI. One is modernization and AI services. We will leverage our existing customer base to capture steady growth. The other area is social infrastructure times AI, namely physical AI. This is an area where significant growth is expected in the future. By capturing these two markets at the same time, we will achieve both growth certainty and high growth. We will build a sustainable competitive advantage by leveraging Hitachi's unique strength in these markets. In the following sections, I will explain these two growth strategies. Regarding modernization in the AI service market. The DSS sector has a massive installed base of about 15,000 customer system operation in Japan alone. This is our solid customer base. In addition, customers have a strong need to realize their own AI transformations among aiming for sustainable growth in the AI era. By revamping these existing IT assets to be AI ready and embedding AI into them, we will reliably convert the growth market into profits. Going forward, we believe the key to success is how to increase the speed of service provision while incorporating the evolution of AI. We will raise domestic sales to JPY 3 trillion- JPY 5 trillion by 2030. The key to this success is the FDE team. FDEs are engineers who step into the customer's front line and handle everything from problem solution definition to implementation, operation, and improvement in a comprehensive manner. Rather than just making proposal documents, as in the past, once customer issues and business values are identified, we propose them immediately with mock-ups and prototypes. This speed becomes a major competitive edge. As an execution unit that connects business challenges to AI solutions, we will expand this team to a scale of 5,000 people, drastically enhancing our delivery capabilities. The Frontier AI Deployment Center announced in May this year, supports the activities of the FDE team and will accelerate its expansion. The foundation that realized this continuous business transformation of our customers swiftly and with high quality is agentic integration. This is a new development methodology where AI agents handle development processes such as design, coding, testing, and operation. By incorporating Hitachi's know-how and assets, we will dramatically increase the speed of development while improving productivity and scale. FDE defines the challenges, agentic integration implements solutions quickly so that our client's ongoing business transformation can be supported. This is not limited to mere efficiency improvement. It realizes a shift to a high value-added business structure, where sales growth leads to profit expansion. Next is a growth strategy in the social infrastructure times AI market. That is the physical AI market growth. Power grids, railways, and giant plants. In these domains that support society, the AI utilization is not yet sufficient. We are deploying our unique digital service called HMAX in this domain. It analyzes operational data using AI and autonomously optimizes the infrastructure. This simultaneously elevates efficiency and reliability at the same time. This market will expand to a scale of several JPY 1 trillion to over JPY 10 trillion in the future. There are no established players yet. We will mobilize all the assets of Hitachi Group and aim for the top. Our competitive edge in this social infrastructure times AI market lies in our ability to provide four strengths in an integrated manner. The first is physical AI based on domain knowledge. Second is a physical AI FDE team. The third is mission critical security. The fourth is data fabric. To implement AI in social infrastructure, general IT knowledge alone is insufficient, domain knowledge that understands the front lines is essential. By providing this strength as a single entity, we will achieve high reliability and efficiency at the same time. Furthermore, I will explain the physical AI FDE team and data fabric in detail later. HMAX, which integrates these elements, will evolve not just as a mere solution, but as an OS that supports the operation of social infrastructure, as President Tokunaga explained in the CEO remarks. The core of socially implementing this physical AI is the physical AI FDE team. Our competitive advantage, which translates the difficult strategy of physical AI into actual value creation, lies in our human resources. Traditionally, the IT world, which handles AI and data, and the OT world, which handles products and control technology, have been divided. However, integrating these two fields is essential for implementing AI in social infrastructure. The physical AI FDE team is a uniquely Hitachi organization that fuses the AI, data security technologies of GlobalLogic and Hitachi Security Services with the OT domain knowledge and control technologies that Hitachi has cultivated over many years. They will enter the customer's frontline and convert AI into business value while bridging the knowledge of IT and OT. Thanks to this team, it becomes possible to balance the AI utilization with a high reliability and safety, even in social infrastructure. The DSS sector will accelerate the scaling and monetization of HMAX with this physical AI FDE team at its core. What is essential for the social implementation of physical AI is that data fabric, which is a data foundation. In the social infrastructure domain, IT and OT data are scattered, and as they are, they cannot be fully utilized for value creation by AI. Data fabric integrates and structures this data, preparing it into a form that can be safely utilized by AI. Furthermore, it goes beyond a single system to enable data linkage across industries and business types. For example, by linking renewable energy power generation with factory production plants in real time, it achieves optimization of energy cost and CO2 emissions. By realizing such cross-industry optimization on Hitachi's platform, we will lead to new data-driven value creation and continuous profit expansion. From here on, I'll explain the investment partnering structural reforms that support growth. First is investment. In order to realize the growth strategy I explained so far, we'll dynamically invest capital while maintaining financial discipline. In FY 2026, we'll increase organic investment by JPY 30 billion and accelerate investment in human resources and technology such as training FDEs and strengthening privately IT, excuse me, AI technologies. Furthermore, we have secured an organic investment quota of up to JPY 1 trillion during the Inspire 2027 period, and we'll flexibly execute M&A of companies that possess the necessary technologies and customer bases. This will enable us to effectively capture growth markets and further enhance the scale and competitiveness of our business. The partner ecosystem for sustainable growth. The DSS sector is already advancing collaborations with many partners, as shown here. As a hub, we are also expanding the collaboration between these partners and the OT sector. For example, most recently in May, we concluded a strategic partnership with Anthropic and announced that we will strengthen the cyber resilience of social infrastructure such as power and transportation. Also yesterday, together with Google Cloud, we announced strengthening the FDE by combining the capability of the two companies and acceleration of the global rollout of physical AI. In this way, as a global leader that continues to digitally innovate social infrastructure, we will continue to leverage this ecosystem of partners to rapidly expand the value we provide to our customers. Regarding structural reform, we are promoting IT primarily in the IT product business, advancing the selection and concentration business from the perspective of the capital efficiency, specifically in the storage business. We are concentrating the resources on the globally competitive high-end domain, and for the ATM businesses, we will transition to an optimal structure tailored to the market environment through business integration with OKI. Through these initiatives, we will further improve the profitability of the product business and aim to maximize capital efficiency. Finally, the summary. The target financial indicators are shown here. By reliably harvesting monetization and capturing AI growth opportunities, including physical AI, we aim for sale growth rate of 7%-9% and adjust EBITA margin of 16%-18% in FY 2027. That this sector will certainly execute the strategies explained today and aim for further improvement, particularly regarding profitability. That is from my side. Thank you very much for your attention. Next, CFO Kato will explain the financial strategy. Mr. Kato, please. Hello, I am Kato, CFO. Today, I will explain how Hitachi intends to enhance corporate value while balancing sustainable growth with disciplined management, focusing on our financial strategy and risk management. Specifically, I will discuss the four pillars that support the enhancement of corporate value: cash generation capability, capital allocation, capital efficiency, and risk management. First, I will explain how we are strengthening our cash generation capability, which serves as the foundation for both growth investments and shareholder returns. Driven by the Lumada business, we are continuously expanding core free cash flow through revenue growth and margin improvement. Over the two-year period from FY 2025- 2026, both revenue and margins are expected to improve steadily. EPS is also expected to grow at a CAGR of 19% over these two years, and we intend to continue increasing it going forward. Through improvements in CCC and other initiatives, we continue to maintain a conversion rate from net income to core free cash flow that exceeds our target of 90%. As a result, core free cash flow is expected to grow at a CAGR of 28% over the two-year period, even excluding the impact of large advanced payments, and we will continue to expand it going forward. The second pillar is balanced capital allocation between growth investments and shareholder returns. Our capital allocation policy has remained unchanged since last year. While emphasizing returns, we will continue to allocate cash flexibly and in a balanced manner between growth investments and shareholder returns. First, let me discuss inorganic investments that support sustainable growth. As discussed today, we will focus on strengthening digital capabilities and expanding services with the majority of transactions expected to be bolt-on acquisitions that reinforce our existing businesses. Investment decisions will be made based on alignment with Hitachi's growth strategy, as well as careful assessment of risks and returns. Regarding financing, we will utilize leverage when appropriate while maintaining financial discipline. For shareholder returns, our policy is to continue increasing the level of returns over the medium to long term. At a minimum, we intend to return more than half of core free cash flow and net income to shareholders. For dividends, we prioritize stable growth in line with business performance, while share repurchases will be conducted flexibly as needed. In summary, our approach of cash allocation is illustrated on the right-hand side. First, core free cash flow will be allocated between growth investments and shareholder returns in accordance with the principles I just outlined. Proceeds from asset sales will be used for growth investments if suitable opportunities meeting our strategic and return criteria are available. If not, those proceeds will be returned to shareholders, primarily through share repurchases. Leverage will be utilized for growth investments while maintaining financial discipline. Here, let me explain how we have advanced growth investments within our capital allocation framework. Since launching Inspire 2027, we have steadily accelerated portfolio transformation aimed at expanding the Lumada business. Growth investments are evaluated through a disciplined decision-making process that considers both strategic fit and hurdle rates. As a result, the number of internal reviews related to portfolio transformation tripled year-over-year, significantly accelerating our efforts. Specifically, we advanced portfolio transformation through the divestiture of our ownership interests in these asset sale transactions. We also successfully executed inorganic growth investments that contribute to the expansion of Lumada, particularly in the digital service business. I would like to explain the progression of our expanding shareholder returns. Supported by growth in core free cash flow, dividends have increased steadily in line with our policy, marking 10 consecutive years of dividend increases. Share repurchases are conducted flexibly, taking into account cash generation capability, financial condition, and progress in asset sales. On a cash payment basis, dividends per share are expected to increase from JPY 41 in FY 2024 to JPY 55 in this fiscal year. Share repurchases are expected to increase significantly from JPY 200 billion in FY 2024 to JPY 550 billion this fiscal year. As a result, the total payout ratio is expected to rise to 94% this fiscal year, while total shareholder returns are projected to increase from approximately JPY 390 billion in FY 2024 to JPY 800 billion in this fiscal year. The third pillar is improving capital efficiency, which supports the enhancement of corporate value. Through the expansion of the Lumada business, we have increased returns and optimized invested capital, enabling us to improve ROIC again in FY 2025. Inorganic growth investments are essential for sustaining business growth. However, even if ROIC temporarily declines following an investment, we will work toward a swift recovery by improving ROIC and reducing WACC, thereby expanding the ROIC spread. For FY 2027, even after factoring in future inorganic investments, our target is to maintain the current level of ROIC. Let me now introduce the key initiatives for improving ROIC. On the numerator side, we are driving higher returns by strengthening the growth and profitability of our four core sectors with the Lumada business at the center. In addition, we will further expand the use of AI to improve productivity. On the denominator side, we will optimize invested capital through measures such as portfolio transformation, asset-light management, and optimization of shareholders' equity. In addition, to expand the ROIC spread, we will work to lower WACC, including through the appropriate use of leverage. The fourth pillar is strengthening risk management to protect and enhance corporate value. As Chief Risk Management Officer, or CRMO, I currently oversee risk management activities across the entire Hitachi Group under the leadership of the CEO. In today's rapidly changing business environment, we are advancing our enterprise risk management framework, enabling our business, regions, and corporate functions to work together in identifying and addressing key risks across Hitachi in an integrated manner. Our approach to risk management focuses not only on mitigating losses from threats, but also on capturing growth opportunities. In enhancing our ERM framework, we are focusing on three key areas. From a comprehensiveness perspective, we have established common risk categories across the Hitachi Group and identified our key risks. From a timeliness perspective, additional countermeasures for key risks are discussed at monthly management meetings, enabling us to respond quickly to changing conditions. To strengthen organizational responsiveness, we have assigned Risk Management Officers, RMOs, across business units, regions, and corporate functions to drive risk management activities. Within our ERM framework, key risks are organized into a company-wide risk heat map to help minimize risk exposure. Examples include procurement, which is affected by development in the Middle East, talent, which is critical for growth and productivity, and technological advancement, including opportunities arising from AI. In response to developments in the Middle East, our business regions and corporate functions are working together to accelerate mitigation measures. With respect to AI, we believe the growth opportunities for Hitachi far outweigh the associated risks. As discussed today, we will pursue growth opportunities by applying physical AI to mission-critical social infrastructure and by supporting our customers' AI transformation initiatives. Finally, I will summarize the key messages I would like to take away from today's presentation. Even amid a rapidly changing business environment, Hitachi remains committed to balancing an unwavering pursuit of growth with disciplined management, while striving to become a global leader in digitally transforming social infrastructure. By steadfastly adhering to the four principles I have discussed today and continuing our dialogue with investors, we will achieve the sustainable enhancement of corporate value. We sincerely hope for your continued confidence in Hitachi's future. Thank you for your attention. After this, we will be having Q&A session that will be starting 10 minutes later. Please wait for another 10 minutes. [Presentation] Thank you for waiting. Now, I'd like to start the Q&A session. Let's have an active discussion. We appreciate your participation. Let me explain the flow of the Q&A session. For Q&A session, we are going to have one hour. We will receive the question from both the participant in venue and online. Please raise your hand if you are on the venue, and if you are online participant, please put the hand raise button. We are going to nominate the person who are going to ask questions. For those who are on the venue, we are going to bring you a microphone. I'm going to limit to two questions per person, and we are going to answer per question. Please state your name and the company you belong to, and share your question. From the venue, Hirakawa-san, please. I am Hirakawa from BofA Securities. Thank you very much for the presentation. My first question, I have a question on FDE. While scaling HMAX horizontally, FDE will assume a very important role. FDE came from Palantir. From the stickiness of the customer point of view, I hope HMAX will be like that. From scale perspective, I think the challenge is scaling this. What you explained today, FDE, you said was in the place a central role when scaling. What is the difference between Palantir's FDE and Hitachi's FDE? What is the difference so that Hitachi's FDE can scale? How is it different from field engineering FDE? Answer. Thank you for the question, Hirakawa-san. I think you touched on a very important point. Digital FDE and physical AI FDE, I would like to separate. Starting from the digital FDE, Palantir FDE is a model. As Abe-san mentioned in his presentation, the domestic, SEs, we have about 35,000 SEs domestically. They have been certified with levels in each technological field, bronze, silver, and gold. We also have levels for project management. Each SE has his or her own technology, and they are dispatched to the customer site. This is our traditional way of working. AI has been added as one of the technologies to offer value at the customer site. We already have a foundation for scaling in the digital domain. On the other hand, for physical AI, the situation is a little bit different. For it to scale, we are now practicing and acquiring experience through customer zero. One important example is in the mobility sector. The AI team has been established two years ago, and there are members dispatched from DSS and also OT members who are from the rail, and they form one team to apply physical AI to customer zero. We will be making use of this insight so that we can deploy this to other customers. For example, Tobu is one customer, which we already announced. We will move on to the phase where we introduce it to multiple customers. HMAX is becoming a solution where we have sufficient insight, so we are going into a phase where the FDE team will deploy that horizontally. Is that like a Hitachi FDE? Thank you. My second question. In today's presentation, what impressed me the most is Hitachi will be implementing social infrastructure operating system. In the slide, I found HMAX Energy, HMAX Mobility, HMAX Industry. There were the three circle shown in the DSS presentation, and I felt that these are intended to be connected. This HMAX energy, mobility, and industry. For example, in industry, just in time synchronization of production and logistics is something you can do. In this industry, HMAX, you have semiconductor facilities and healthcare. I feel that you don't have enough parts to get this cycle running. To realize these big social infrastructure pictures, please tell me how you will be developing this HMAX Industry. This might be beyond 2030. Answer. Thank you for the question. I would like to comment. Amiya-san will respond. You are right in saying that HMAX Industry will connect to other areas. For it to work as social OS, it needs more work to do. There are missing parts. Where we are starting in HMAX Industry is facility areas, escalators and elevators, and semiconductor, where the demand is surging. For facilities, it's building for semiconductor manufacturing, it will be the factory. The data will be accumulated from these places. We will connect that to energy system to achieve optimum energy consumption. I think we can offer value like that. As you mentioned, Hirakawa-san, by the field of physical AI expanding, it is true that we can offer a broader customer value. That will be expanded under the lead of CEO Mr. Amiya. Do you have any comments, Mr. Amiya? Thank you for the question. Where we intend to start and expand to accelerate. We have strong products. Data is generated there. Physical AI will be developing there. This is the vertical part where you build physical AI for multiple domains. For example, we have etchers and coating. By building physical AI for each of these domains, they will be connected to become agentic AI to really offer value. We will be taking these steps, and this will be the three domains or facilities. This step is extremely important, and I think this will be a big differentiating factor and value for us. How we can realize social implementation. There are areas where we start from our facility domain and AI semiconductors. By combining that, we have AGV automatic carry or robotics. By working together with partners, we can really build vertical systems, and then connect that and link that to society. There are areas where we can do it by ourselves and what partners do. By combining that, we will be building more and more HMAX so that they can be connected together. Thank you. Any other questions? Yasui-san from the venue, please. Thank you. Yasui from UBS Securities. The question number one is about energy segment. This is the first time AI related $1 billion revenue was achieved this time. This growth starting from 2024- 2025, you show the big growth by having that diagram. The product which led. Normally, transformer will be the leading product to grow that growth. Last year, Tokunaga-san had a collaboration with Sam Altman from OpenAI, and electricity is in shortage so that there is a possibility coming from a digital world. The other day, the digital infrastructure will be established. That business model was announced. The future, the business related to data center, not only transformer in energy, any other product like data center infrastructure, including differentiator as well, if you share the growth. Yasui-san, thank you for your question. As you pointed out, the data center demand is expanding so rapidly. Last month when I met with the U.S. investors, the data center area was their interest. What kind of revenue you are generating, what kind of products and services that you can provide? Those questions were received a lot. Actually, Andreas prepared this slide and only talking about data center as well. This is the slide we are talking about. Behind this, I'd like Andreas to comment on this. Thank you for your question. I think if you talk about data center, it's not only transformers, it's actually the grid connection what we are providing. It means transformer and the substation and partly even the distribution, solid state transformer on a medium voltage level. Why we are thinking that we can be successful there because we started with containerized solution. Data center customers are different to utilities, completely different. They normally don't know exactly what they need, they are more going for a kind of specification where the function is specified. We have that, "Show me a technical solution." They are much more flexible. We can provide standardized solutions which are fulfilling their need in a fast way if we can supply like with containers. That's why we believe that we can grow in that area with our portfolio quite significantly. Toward the 2030, you are thinking about the energy as a service type of solution? These are different things that we are exploring. For our data center customers, of course, there's a ratio between CapEx and OpEx is essential as well. If you build a data center, you are spending CapEx. What we are offering as well in the discussion with customers is that we are able to leasing or renting our equipment. It means that you pay by the hour, like in the gas turbine business for jets. Power by the hour, you can actually lease and rent the equipment from us as well, and you pay as you go. That's a possibility as well. That's the financial optimization, which gives us just more edge in our customer relations. The energy as a service looks really interesting. It's a kind of new business to Hitachi. Sometimes in the future, you're going to disclose potential markets, like a business side of this business, because you are just launching this business. I'm personally very interested in the kind of new initiative. It could be a new business line. We will see how big is the demand and how big is the volume and how much we want to afford of that, because it's a kind of financial service coupled with a technical service. Of course, we will definitely balance our portfolio. If the demand is big enough, definitely. Why not? Thank you very much. My second question is to Abe-san and Tokunaga-san on IT services. Insourcing. How do you take insourcing? This might be a nasty question. I think software can be developed very quickly by using AI. Some customers might start insourcing. For example, the other day, the CEO of Fujitsu was saying he takes for granted that the companies will start insourcing. As you say, mission critical is extremely important and you need the data fabric. That is about 60%-70% of the customers. However, about 30% of the customers will start developing by themselves. How do you see this risk? Thank you for the question. This is the answer. The customer starting insourcing, I think that will happen. When you say insourcing, it might not be the customers developing by themselves by hand, but the AI will be developing the system on their behalf, or on our behalf. I don't think this can be avoided. Before, the customer did something and vendor did another thing. Going forward, the insights of both parties come together or agentic AIs from both sides, from Hitachi and the customers working together. That is the vision we hold. What Abe-san mentioned in the presentation, that is what we mean by agentic integration. Hitachi has project management knowledge and testing knowledge, and we will have AIs who have that knowledge, and the customers know the details of their operations and their business, and they will have the AIs with the knowledge of their own operations and business. By these two AIs working together, and we will also be working as one with the customer. It's no more like who does what. It will be more an integrated process. That is why we are proposing this agentic integration. When we have that, there will be no longer a side which places orders, the other side receives the order. It will be probably more like a joint venture or something else. Rather than thinking about whether the work is done within the customer or externally, it would be more like doing it together. In a sense, it will be more a service or outcome based business. Abe-san, do you have any additional comments? Actually, I don't. Domestic and overseas, I think the situation is a little bit different. In Japan, we have customers and system integrators. There is this share of roles and responsibilities, especially in the mission critical area, and Hitachi has been delivering our development based on the deadline, and we have been doing that. There is not much impact there. Here, we are improving our efficiency, productivity using agents. However, overseas, GlobalLogic, there are customers who are starting to develop on their own. There is pressure on the pricing. That is why we are trying to utilize GlobalLogic resource to transform Hitachi Group's OT sectors and DSS sector transformation. GlobalLogic is really being very useful to transform the OT sectors and DSS, and we would be using them more and more in FY 2026 and beyond. Also standalone business, we would like to move on to value-based business rather than time and material. There is a company called Hitachi Digital Services outside Japan, and they are already doing value-based business. We will be moving more and more to businesses which charges based on value, and also we will be converting people to FDEs. Thank you. I will take another question. Harada-san from Venue, please. I am Harada from Goldman Sachs Securities. Thank you very much. I have two questions. At first question, Tokunaga said in the beginning, like AI, whether it is a threat or opportunity. It is an opportunity, that was clearly said by Tokunaga. Would you elaborate on that a little bit more? You have Lumada, and you are utilizing digital for long years. The discussion about AI has been changing in the past one year alone. The change about AI discussion, it is something shifting your pathway about Lumada business in the future, like by AI in 10 years' time, you wanted to realize such and such, but you will be able to do it within five years, whether you can accelerate that time or it is type maybe much expanding 10 years' time. Yes, Harada-san, thank you very much for your question. As you just explained, AI is really a good opportunity for us. When it comes to Lumada perspective, what it means to Lumada is as follows. As you explained some examples, like we have HMAX has been established. But to be honest, we hope we want to do something like HMAX. That has been our aspiration several years ago, but suddenly it has been realized with speed. This is due to AI evolution. How much acceleration we achieved is not easy to be calculate. When we started to see ChatGPT in 2022, starting from that timing, like three-five years were able to be shortened for initiatives. That is what I feel. On top of that, in the past, what is totally different from past Lumada is when we say Lumada, of course, we accumulate our knowledge and experience to make a solution under Lumada. Human beings were not aware of something. By having the use cases where people are not aware of what knowledge can be accumulated that human are not aware of, the new values were taught by AI to us. We can provide such new values learned from AI to our customers. That is my understanding. We all have to promote this flow. We started from mobility for HMAX. We want to expand it for the other areas. You explained earlier, the HMAX, which is across the several industries. We want to link horizontally so that we can create OS for social infrastructure. Okay, thank you very much. Second question. On page 16 in energy presentation, the solid state transformer. Overseas, I think this is talked about with great enthusiasm. I would like to hear Hitachi's strengths in this area, because you have been handling transformers for many years. I think you might be able to convert what you already have in the industry to apply to this area. When will this start contributing to revenue? Are you already talking to customers about this? Specific question. Solid state transformer? Please. Thank you for the question. The solid state transformer is actually a new solution which is actually reducing the space for data center customers. It is not a complete new concept or technology. You are still going with a medium voltage transformer from one end of the voltage to a DC voltage used data center. Normally, you are doing it with a normal medium voltage distribution transformer. Then you add an inverter to generate the DC. Data centers in the space we are seeing it today with 1 GW, 2 GW, 3 GW, they are huge. They are enormous. Space is becoming a constraint. In a solid state transformer, you are combining the inverter together with the transformer in one piece, which is saving space. It is a little bit more expensive. It is a little bit more efficient eventually if you are doing it right, but in the mean point of economics, it is space consuming. We are long enough in the transformer business how to do that. We deal with that. We are developing these special type of dry transformers for rail as well, for instance, because they are very sought after there. We are quite confident that we can make a difference here. Understood very well. Thank you very much. Any other questions? From the venue, Yamasaki-san, please. Thank you very much. I'm Yamasaki from Nomura Securities. I have two questions as well. The first question is about the strategy to expand HMAX. You explained already, but in particular, for digital assets of the other parties, how you can expand your sale to their digital assets owned by other customers. Mobility, selling 35% for non-Hitachi fleet, that has been successful for mobility. Why it was successful, and for the other three sectors as well, how you're going to expand your install base and customer base through digital service? Do you have any specific digital service scenario to expand customer base? By acquisition, if you acquire service companies or a company who has customers' asset, could be If you have any easy or difficult to purchase such a company by sector, could you share that with us? Yes, Yamasaki-san, thank you very much. To scale the HMAX, this is an important point. We have one important model, which is HMAX Mobility. After I comment on this, then Giuseppe is going to answer how we are able to apply our HMAX to other parties' rolling stocks. We have track record, which is a really important source to expand for the other companies' rolling stocks, but that will be commented later. The other important point is that in Mr. Amiya's presentation, the horizontally roll out had some key components, whether we have the key components or not to expand horizontally. This is one more point which is important. We are preparing Edge AI semiconductor. That will be deployed to other party products so that we can collect data, and also equipment of other parties can be operated, then HMAX can increase the scale. That will be explained by Mr. Amiya later. Yes. Thank you, Yamasaki-san. Of course, we can build up on our experience. We started almost seven years ago, in the U.K. by utilizing our technology, and we have unique technology in the sensors. Already six year ago, we bought a company for vibration sensor, last year, Omnicom. We can bring our own sensor technology, which is a big differentiator, as well as our platform combined with domain competence is giving us a big advantage. Now we're moving, as you said, in the 35% with other customers and through Clever Devices, which is the acquisition we said before, we're also moving into other areas like buses or other way of transportation. We are moving horizontally and vertically, creating a large data set and possibility to do, as we said, improve reliability, improve energy efficiency, or even combining having traffic data. Compared to other model, we do own the data. Also we do own synthetic data because, as Abe-san said, we get a lot of expertise from Hitachi Digital, we can also do a lot of simulation. Thank you very much. Thank you very much. As Tokunaga-san explained earlier, there has been the evolution of Edge AI. The players who produce their products and how they can make intelligence of their products so that they can be a physical AI flow. This is the common challenge for every player here. We actually developed Edge semiconductor, which is exactly a collaboration with such customers. Then we can add OT, which possessed by us. We together can consider how we can do together, and we have similar products. We can utilize Edge AI if we utilize such and such. We can simulate it right away to customer. We want to expand it. One more addition is that in the connected industry and the key component, like yesterday, we announced the air conditioning with Bosch. We have a key component. On top of that, HMAX for Buildings can be utilized as it is in the collaboration. This is radically one of the approach to expand HMAX under CI sector. In the, let me add from digital field, we have many fields, including factories and plants. Within factory and plants, of course, they use our own product, but other products are introduced for the production facilities. From a user's perspective, if we such and such, we can reduce this energy consumption or energy efficiency can be improved. If we provide it, they will look to do it with us. The partner who provides such facility are using our product as well. That ecosystem. It's not the IT field ecosystem, but IT can contribute to that as well. These are additional information from our side. Thank you very much. The next question about the effect of internal use of AI. In Inspire 2027, you mentioned about you expect an impact of about JPY 100 billion. What is the progress? Do you see more potential benefits of applying AI, your internal productivity increase? Thank you for the question. Answer. I would like to first comment and then Kato-san will talk about the numbers. The internal use is extremely important. To achieve more than the plan, we have Hatakeyama-san as Deputy CFO and Fujimori-san, who is responsible for IT. These are two Senior Vice Presidents. We are leading this. JPY 100 billion in FY 2027, we will not change the target, but we are trying to achieve even more than that, and we are trying to accelerate that. Kato-san, do you have any addition? Just a little bit. Originally, applying AI to customers' operations, we have already started two years ago. For example, as Abe-san mentioned in his presentation, GlobalLogic is providing the tools and these are getting ready. We are trying to use that internally. We have started this organization to utilize AI internally this April, and we need technology, and we just announced our partnership with Anthropic. We have not yet updated this number of JPY 100 billion, but I think this will expand further. Thank you. Any other questions? Okay. From the venue. Fukuhara-san, please, from the venue. I'm Fukuhara from Jefferies. Thank you very much today as well. My first question is this time in DSS sector revenue margin in FY 2027. The growth for revenue is not changed, but profitability was upgraded. You have fierce competition for the overseas, and IT investment is being constrained. That's why. What will be the probability to achieve your target? I just wanted to confirm it again with you. Yes, Fukuhara-san, thank you very much for your question. This is exactly the plan for DSS sector. I'd like Mr. Abe to answer to your question. The answer is thank you very much, as I said in the presentation as well. In Japan, we have the strong business demand in Japan. It means there are many legacy systems operated in Japan. Customer will utilize AI to improve their competitiveness and agility as well. Modernization and AI implementation needs are quite high in Japan. How much confident am I? I'm confident. We should be able to achieve it. On top of that, as I said, the collaboration with OT sector has been progressed. We utilize GlobalLogic and FDE to be trained so that we can generate profit. That in Inspire 2027, we would like to make a foundation toward 2030. Let me add to this. As was mentioned, AI is evolving, and in Japan in particular, modernization needs are quite high, which is the source of the driving profitability. As I said in the presentation, Mr. Abe, portfolio reform is really continuing without any discontinuation. The higher profitability, we would like to focus on the business where we can expect high profitability. Based upon that, we are focusing on high growth and high profit business. Second question, HMAX and physical AI. You have shown the revenue projections, but how do you see the contribution to profitability? If the profitability is high, I think competitors will come up. If you look at five years down the road, what is your current business strategy? Answer. Thank you for your question. As you said, HMAX has high growth. In Abe-san's presentation, it said 50%-60% growth. HMAX is expected to continue to grow at a very high rate. We believe we will be able to maintain the profitability of more than 20%. Why we can do that? IT/OT product. We are able to converge all the insights for IT/OT and product, and that is a big differentiator on implementing physical AI. Needless to say, many parties talk about physical AI, companies which can apply internally and then scale externally, I don't think there are many players in the market who can do that. When we bring HMAX to the customers, we actually don't see much competitors on HMAX when we bring this to customers. By really improving this HMAX as we go along, I think we will run into competitors, but we would like to continue increasing our competitiveness, and that would lead to maintenance and expansion of growth and profitability. Thank you. Any other questions? Yeah. Fujiwara-s an from the venue. The question. Thank you. I am Fujiwara from Citigroup Securities. I have two questions. The first question is, this time HMAX, in particular for the industry area, I have some questions. Each company started to talk about physical AI. In the future, I believe that you want to utilize AI to optimize the total factory or plant, I believe. Hardware companies are promoting physical AI recently. With this AI system, is it something Hitachi is going to manage? Or you like to replace the existing one with your own AIs? Or are you going to have the combining your own AI and other company's hardware AIs together so that you can provide optimal solution as a total? I just want to know how you want to establish the plant and factories in the future. This is my first question. Fujiwara-s an, thank you very much. Answer. The important point and you are looking forward in the future. I don't think there is an answer to this. In the future, I don't know whether one company I don't think one company can manage everything. I don't think one company can control everything, total perspective. The customer should like to choose the best product, the best services in one environment. Key is data in knowledge-based model, which is AI model based upon knowledge. How we can manage to control those data and knowledge model AI is important for the future growth. That is why I said OS in my presentation. Data and AI should be possessed by us, and then on top of that, apps or application can be combined between ours and the third party's applications based upon customer's request. That will be the future factories. Not only factories, but also the other field domain. That will be the case, I believe. Do you have anything about industry? Fujiwara-s an, thank you very much for your question. Yes, that is really an important point. In the past, customers are not really disclosing data to us. That was difficult for us to receive data. As I explained today, and I explained the growing area today, and with AI evolution, but also customized technology has been developing so fast, and they have to reach payback period earlier with having faster investment decision. Instead of customer doing it by themselves alone, partnering with company like us, they can have the earlier payback period so that they can realize their aspiration earlier. That is the loop they want to achieve. When we look at the factory, which combination can deliver best results should be our focus. If we want to focus totally, but if we want to focus on something we alone cannot do some areas, we have products and data that we can provide, and that should be combined with the partners asset so that we can create combined values. That is a physical AI value creation that is satisfied by customers. Of course, we want to strengthen what we are strong at and the value we want to provide to customers, we want to partner with our people, partners. We don't believe we can do everything by ourselves. We want to have the good collaboration with the stronger partners so that we can create customers value in the ecosystem. The processes and functions of the core part of the customers is something that we want to deliver based upon our technology and data. Thank you. Second question about mobility. Mobility towards FY 2027. In the revenue target, the other sectors have clearly stated the M&A targets. In rail, what are your thoughts on M&A? What do you intend to acquire? Answer. Giuseppe is now considering this very deeply. I would like Giuseppe to comment on possible M&As. Thank you for the question. We have three different kind of M&As. The first one, it's HMAX related on competencies. We have seen Clever Devices or Omnicom. Second one, it's more related to the specific growth in multimodality, and we are looking at having a larger database like traffic or similar areas. We're doing a detailed valuation on the possibilities, the market, the profitability of this area. The third part, it's expansion into new markets. The world is growing, a number of countries are growing, and we expect the growth in some markets, as seen in some chart. We expect some big growth in the southern part of the world. We're looking at these three different possibilities, and of course, it's a very detailed analysis, and we're moving. Now that we completed successfully quite a number of acquisitions, so we know how to proceed quickly. Now that GTS especially is completed, we can concentrate our energies on the next big one. I would like to add, Giuseppe just mentioned the various types of M&As. It's not a pie in the sky. We have specific targets in mind, but we cannot give you any clear indications or company names. We can assure you that we have clear targets in our minds. Thank you very much. That's all. Any other questions? Yoshikawa-san from the venue. The question, Yoshikawa from Morgan Stanley. I have two questions. My first question is to Tokunaga-san. In the past one year, expanding HMAX, and you have hyperscaler, global AI enablers. You are announcing the collaborations, and you've discussed with them in that activities as a steady strength. Its IT/OT products combination was mentioned in various occasions. On the other hand, while you have your dialogues with. How do you see the challenges that you have at Hitachi? To overcome such challenges, how do you think that you can promote such problem-solving? Yoshikawa-san, thank you for your question. The answer, as you mentioned, HMAX and Lumada expansion topic. In the past one year, actually, in order for us to expand AI ecosystem, I have met with various CEOs to date. Through the dialogues with those CEOs, at first, let me talk about our basic idea, why we started to discuss with these CEOs. People are talking about monetization of AI so loudly, but the model area, in particular LLM field, is becoming more public domain in the future. Instead of deciding who to partner with, each company has its strength and weaknesses. Ecosystem should be evolved by partnering various partners. Why we discuss IT/OT products was mentioned by yourself and every player, like recently OpenAI and Anthropic are some examples. When we talk to them, Hitachi has a five-layer cake, the energy at the bottom and application at the top. Hitachi can provide every layer. The people who are dealing with the models, of course, they will discuss application with Hitachi. The energy area to operate app can be discussed with Hitachi. As a partner, it's really rewarding. That was mentioned by Sam Altman. Beyond it, to expand this business, welcome challenge I see is. This is something that I'm telling this to you like Hitachi since I took this principle. In the past, we only talk about apps. That was the end of the discussions and transformation energy. We discuss only the transformer and energy, but how we can connect that to Hitachi other businesses, that has been the area that I was paying attention to. By gathering those elements, we can have more number of opportunities that is identified by our people when we talk with Lip-Bu Tan from Intel. We are not only talking about Hitachi CD-SEM. There's a solution in energy optimization to operate plant is part of the discussions. All the Hitachi capabilities should be able to be delivered to customers for their help. That is really important challenge that I have. Second question is about CI. In the business portfolio transformation, you have mentioned the expansion of your sensing portfolio. Looking at it from external perspective, I think you have very strong CD-SEM, SE-SEM, and sensing portfolio, but that has not really broadened. What will change? Do you think the scale of M&A will increase, or is there anything else? Thank you very much for the very important question. This is what I have been talking all this time with CI sector. Amiya-san will be happy to respond. I think that's a very important point. Up till now, why this area did not expand, I think there are two reasons. Before, we were shipping products, and we just shipped it, and that was the end. Then we shifted to maintenance. That was the business model. As I said earlier, things are getting very complex, even for only semiconductors, so we want to shorten the time to market. We need data. For example, one process only completes by combining various sensing. Combining this data and the sensors, detectors, which generate these data. The business is really now shifting to service. That really underpins the future expansion. Depending on what is coming, we need to enhance or change the combination of what we have. We already have CD-SEM technology with lasers, but we need to think about what material combination we need for X-ray and for healthcare. How can we use optical for healthcare? We need to really think about what to combine with each other. Generating data by combining multiple detectors and optimizing the process and shortening the time to market. We need to draw a clear roadmap and do whatever we need to do step by step, and wherever we need to collaborate, we will collaborate. We need to have this overall picture, and this we have as a result of this extensive discussion with Tokunaga-san. I would just like to add one thing. When we think about CI sector business model, mobility and energy is our model. They start with strong products, and they made that digital to generate services. I think that is the winning model available to Hitachi now, and now we are realizing that. What is CI sector's number 1 product? There's quite a lot where CI sector's product is number one, but as Yoshikawa-san mentioned, we were not able to capitalize on that fully. We should have this number one product and attach some supplementary products onto that number one product and then offer that with services. I think that is the winning strategy for CI. The next question. Ayada-san, please, from the venue. The question. Thank you. I'm Ayada from JPMorgan Securities. I have two questions. My first question is about energy. Short-term and long-term perspectives. For the short-term perspective, at first, in the last fiscal year, you made upward revision for the performance, and you actually did upgrade forecast provision, and you did it every six months to upgrade or in particular margin forecast. I want to know which is a factor to change your margin forecast. I think projects are already fixed, so the profitability should be able to be available when you have the fixed project. On top of that, for the shorter term, you upgraded your margin. Is it because operation efficiency is the factor so that you can improve that margin, or you took a conservative look at first to generating margin forecast? For the long-term perspective, the backlog of 2030 is JPY 100 billion. This visibility Investment amount, you say JPY 6 billion, up until JPY 6.6 billion, up until 2027, it would be expanding in 2030 for the investment? Ayada-san, thank you. The answer, thank you very much. For the short term, the margin forecast has been upwardly upgraded, what kind of initiatives to support this upward revision of the margins? This is the first question. The second question is about 2030, JPY 100 billion visibility. You want to have more answers, I want Andreas to answer to your question. The question. I think in regards of the short term and the question of the upgrading, of course, we are constantly looking at our figures and our projects and our performance, where we are standing, and if we have to make some adjustments. You are right, some of the projects are fixed if we have booked them, but some of them not, especially more complex projects like HVDC are covering normally three to four years in execution, and they have, of course, risk buffers in it and, of course, things you cannot control. Some of these contracts have as well some additional bonuses if you energize the lines ahead of line or on time or maybe later, then you have a bonus. You only know that if you approach the end of that project. At the moment, we are performing there very well. That's why we were able to upgrade this particular part. It's not completely true that you know it the moment you book it. This is a dynamic process, especially in the projects which we have. Then, of course, you have uncertainties like supply chains. If you're doing HVDC things in Saudi Arabia, for instance, then of course, supply chains can be impacted, so we have a rather conservative approach in looking forward on projects. On efficiency levels, of course, if you know that efficiency is kicking in, as I have shown it in my presentation, then of course, we are applying that to our forecast and updating our results as we see these efficiencies are kicking in. For the long term, I think you are right. We are forecasting for 2030 a backlog of around JPY 100 billion+ framework agreement and capacity reservations. As I've told you, we are only investing if we have a bankable business case. If the backlog is developing in that direction, we are not excluding that we are investing more CapEx if we have the orders on our hands, and it is a very conservative business case. I would expect, yes, you could see more CapEx investments in our sector going forward in a very conservative approach. We are not building over capacities, or we are not building anything which is not sold or which is not realistic, so we're not changing our risk profile there. Thank you. Second question, data sovereignty. Last year in this Investor Day, in the energy sector, the service revenue was low because there are customers who did not want to connect to the cloud, so that's why service revenue does not grow. I think you mentioned that last year. This data sovereignty, as mentioned in industry, but energy and mobility is more mission-critical. Is there a risk of this data sovereignty being a roadblock to increase service revenue? Maybe not cloud-based AI, or would there be a demand for edge AI model going forward? Thank you for the question. Answer. About sovereignty, many people have their opinions. As I mentioned in a previous answer, in the long term, AI model would become a public good. I think that is the long-term direction. Having said that, data is an area which will be the competitive factor between the customers. How much of that data will the customer be willing to disclose to the partners? I think the customers are very sensitive about that. One is handling of the data, and how much of the data, to what extent the data will be visible to the partner, that is another thing. Since this data is a competitive area, we won't be able to fully share this data. If we are to really work deeply with the customer, one way is to establish a JV and share the data within this joint venture. Maybe we can have a service where we will only return the result and not see the content of the data. We have a deep understanding that data will be a competitive factor, and we would like to adjust the business model according to that. As of this moment, there is a discussion on having a Japanese AI. I talked about AI becoming a public good, so there are areas where this sharing cannot happen. Together with other companies, we would like to be involved in the development so that we can make use of such AI. That's all. Thank you. Any other questions? The Okawa-san from online participation, the Japanese channel, please. Question. Thank you very much. I'm Okawa from Daiwa Securities. I have two questions. My question is on page nine of the DSS presentation. I have a question. This shows a target for revenue, JPY 3 trillion-JPY 5 trillion in 2030. It's a range compared to JPY 2 trillion in 2025. What scenario will make you achieve this JPY 5 trillion? What kind of risks you see here so that you have the JPY 3 trillion as a bottom side? The IT service of domestic is 18%. If you have more AI services, it'll be going to the next level of the business. If you think so, could you share that perspective? The answer. Okawa-san, thank you very much for your questions. Mr. Abe is contemplating this area. Mr. Abe is going to answer to your questions. Answer. Thank you for your question. As a background, when we talk about situation five years' time in digital world, there will be technology development market run so fast. It's a bit difficult to mention it. However, for the market total will be growing 6%-7% and we say JPY 3 trillion. We are at JPY 2.2 trillion in Japan. JPY 3 trillion, 8% growth, which is JPY 2 trillion out of JPY 3 trillion should be able to be achieved. I said I was confident earlier that SSD, the risks about materials and engineers having high-end skills can be scaled or not. This is one of the risks. Whether customer continue to invest is one of the risks. The people frontline are working very hard. Would like to really achieve JPY 3 trillion, whether that is enough or not from management. Non-linear higher growth should be able to be achieved through this JPY 4 trillion, JPY 5 trillion perspectives. For instance, this time starting from April, from CI sector, we have the digital department coming from industry in Hitachi Solutions, Hitachi Systems, where we have industry capability and DSS to be infused to industry area and CI sector capability and also their customer base can be utilized by this team. How we can scale is one of the cases. As I said in FDEs, FDE prepared domain knowledge, I was also in the front line as well. The OD knowledge brought up by that can be accumulated as agent or data so that we can scale not only SI knowhows of DSS, but also OT sector domain knowledge will be accumulated as knowledge and data so that non-linear model can be reached by scaling. In organic M&As are one of the challenges that was shown in this JPY 3 trillion-JPY 5 trillion from management perspective. About profitability. About profitability, scaling using assets that would lead to increased profitability. Our target is to secure profitability of over 20%. How can we really increase the turnaround using assets? The second question. The receptivity of customers to digitalization AI. Hitachi's HMAX revenue is JPY 300 billion, and CAGR is very important. You need to scale this further. This infrastructure. Applying AI in the infrastructure industry is taking time. Would it be after 2027 or even after 2030? Is this adoption accelerating? I think you are doing things like developing easy-to-use AI. Would the customer be more accepting to digitalization AI so that HMAX will grow further? Answer. That is a very important point. If this question came one or two years ago, I would have said it would take some more time because the receptiveness of the customers might not be that high. I might have answered this way. Now the scene has totally changed. There are two reasons. The customers themselves started to witness what is happening in the AI. They have started to use it themselves. Now they are more knowledgeable about what AI can do. Also we have customer zero in Hitachi, and when we explain about what benefits the customer zero received and what HMAX can do, the customers are more interested, and they also want to receive such benefits. Infrastructure, which is very complex. HMAX Energy is showing concrete results. As Giuseppe explained, not only global but domestic customers are also starting to adopt HMAX. Customers using digital and AI, I think this acceptance or receptivity is increasing very quickly. Thank you very much. Time has come to finish, so I'd like to hear from Tokunaga-san about closing remarks. Again, thank you very much for participating in Hitachi Investor Day today. It was a three-hour session, and I'm sure you might have tired of this. However, I received constructive opinions and questions to which we are so appreciative. Today, if I say I can summarize it to one important message, so whether AI in risk or threat. There are many investors who think AI is a threat or risks. If you looked at our facial expressions from our side, we are excited to face this AI opportunity. We have this great business opportunity in front of us, which have never experienced by Hitachi in the past long history. How we can capture this growth opportunity to improve our corporate value. We are actually trying to capture it through One Hitachi activities. Society is uncertain to this level, so it's not something we can go wherever we want. We understand it. With the discipline, and we want to increase the speed of the management where we can capture AI growth opportunities. Down the road, while situation will change, what kind of worries, concerns the people in market have, should be understood by us so that we can respond to such questions. That communication is really important. We will continue to create this kind of opportunity for dialogue so that we can listen to your voices, so that will use it to our management itself. Hitachi will continue to evolve toward becoming a global leader that continuously innovates social infrastructure through digital technologies. To our shareholders and investors, please continue to hold high expectations at Hitachi's execution capabilities in sustainable enhancement of our corporate value. We humbly ask for your continued support and guidance. Thank you very much for today. Thank you.