The time has come, so we would now like to start the online briefing of the fiscal year 2022 first quarter consolidated business results. Today's session will be held online until 3:50 P.M. Japan time. We will give a presentation followed by a 20-minute Q&A session with the media representatives and the second half of the 20 minutes will be a Q&A with analysts and investors. We will accept questions via the teleconferencing system. As notified to you in advance, pre-registration is necessary to use the teleconferencing system. Today's speakers are Representative Executive Officer, Corporate Executive Vice President, CFO Masayoshi Hirata. Corporate Officer, Vice President of Finance and Cash Management Division, Yasuhiro Matsunaga. I am Hara from the Corporate Communications Division. Now, Mr. Hirata will give a presentation using the PowerPoint material entitled Fiscal Year 2022 First Quarter Consolidated Business Results. Thank you very much for participating today. I would now like to explain about the fiscal year 2022 first quarter consolidated business results. First, please refer to page 3. These are the key points of the FY 2022 Q1 consolidated business results. There are four points. The first point is operating income or loss was significantly impacted by semiconductor shortage and soaring material and logistics cost and declined year-on-year. Due to higher non-operating income, net income increased. I will explain about the numbers later on. The second point is free cash flow. With higher cash flow from operating activities than from investing activities, free cash flow was JPY 93.6 billion. Third, orders received. Reflecting orders for large scale projects in the previous year, amount of orders received and order backlog decreased year-on-year, but on an increasing trend compared with before and in line with the plan. The fourth point is FY 2022 full year guidance. We expect to achieve the operating income forecast announced on May 13th, operating income forecast of JPY 170 billion. Impact of semiconductor shortage and soaring material and logistics cost exceeds assumptions made at the beginning of the term, but through initiatives such as sales price hike, we will make steady efforts to achieve our forecast. Please turn to page six. This is the overview of the income statement. Net sales in fiscal year 2022 Q1 was JPY 740.7 billion, a year-on-year increase of JPY 12.8 billion or 2%. This includes benefit from weaker Japanese yen of JPY 41.3 billion. Excluding this benefit, underlying net sales declined by JPY 28.5 billion or 4%. Operating income or loss was JPY -4.8 billion, which did benefit from weaker yen. However, because of a drop in sales and profit mainly due to semiconductor shortage and in terms of cost, there was impact of soaring material and logistics cost. Operating income or loss therefore declined year-on-year by JPY 19.3 billion. I will explain in more detail later on. Income before income taxes was JPY 41.7 billion, a year-on-year increase of JPY 12.5 billion. Gain on sale of securities and equity earnings from Kioxia pushed up non-operating income to JPY 46.5 billion, which contributed to the increase in income before income taxes. Consequently, net income after deducting tax expense, et cetera, was JPY 25.9 billion, an increase of JPY 7.9 billion from the previous year. Page seven is the overview of the year-on-year comparison of operating income or loss. At the far left is the FY 2021 Q1 operating income of JPY 14.5 billion. If we add back the restructuring cost of JPY 300 million spent last fiscal year, operating income, baseline, operating income becomes JPY 14.8 billion. There was positive foreign exchange impact, but with severe impact from semiconductor shortage and soaring material and logistics cost, as written in the far right, we incurred an operating loss of JPY 4.8 billion in the first quarter of FY 2022. As written in the box outside the waterfall chart, semiconductor shortage is included in decrease in sales and pushed down profit by JPY 3 billion. Soaring material and logistics cost is included in cost increase, pushing profit down by JPY 9.4 billion, which put together led to a decline in profit of approximately JPY 12.4 billion. Page eight is the breakdown of non-operating income or loss. Non-operating income in Q1 of FY 2022 was JPY 46.5 billion, a year-on-year increase of JPY 31.8 billion. Income on sale of securities was a large factor with JPY 30.1 billion. This is because we continuously verified the appropriateness of our shareholdings and decided to sell some of them. Equity in earnings of affiliates improved by JPY 8.9 billion from the previous year, mainly due to an improvement in equity and earnings from Kioxia of JPY 7.9 billion. Page nine shows the free cash flow. Operating cash flow was JPY 111 billion, partly due to the collection of accounts receivable at the end of the previous fiscal year. Cash flow from investing activities was -JPY 17.4 billion for a total positive cash flow of JPY 93.6 billion. At the lower part of the slide, equity attributed to the shareholders of the company is JPY 1,221.7 billion. After the payment of year-end dividend for FY21, addition of net income, accumulated other comprehensive income improved due to the yen's depreciation, resulting in shareholders' equity increase of JPY 15.1 billion. Shareholders' equity ratio is 31.8%. Net interest-bearing debt is a borrowing position of JPY 14.2 billion. Please refer to page 10 for the breakdown that I have just explained. From slide 11 is business results by segment. Slide 12 is the overview of the breakdown by segment. Details will be explained using the following slides. Slide 13 shows a breakdown of the Energy Systems & Solutions business. Net sales were JPY 121.8 billion, an increase of JPY 23.1 billion versus the same period last year, and operating loss was JPY 7.6 billion, a decrease of JPY 5.8 billion from the same period last year. As you can see, both power generation systems and transmission and distribution systems, sales increased and profit decreased respectively due to the differences in sales mix. Slide 14 is a breakdown of the Infrastructure Systems & Solutions. Net sales was JPY 135.1 billion, and operating income was JPY 0.5 billion. In public infrastructure, sales and profit increased in the Defense & Electronic Systems business. Industrial systems is in the red because of the slight delay in price hike in response to soaring material prices. However, there was an improvement in the railway business due to the reduction in losses from overseas projects and loss in the railway business narrowed. Overall, segment sales and income increased year-on-year. Slide 15 is Building Solutions. Net sales were almost flat at JPY 142.3 billion, and operating income was JPY 0.3 billion, a decrease of JPY 6.1 billion from the same period last year due to the shortage of semiconductors in both the elevator and escalator business and the lighting business, and the impact of soaring material prices in the air conditioning business. Slide 16 shows a breakdown of Electronic Devices & Storage Solutions. Net sales were JPY 181.5 billion, a decrease of JPY 19.4 billion from the same period last year. Operating income was JPY 7.7 billion, a decrease of JPY 2.6 billion from the same period last year. In semiconductors, both sales and profits increased due to the continued strong market conditions and an increase in sales of the NuFlare Technology mask writer. HDDs and others saw a decrease in sales and profit due to a decline in demand for HDDs for PCs and a change of sales channel of Kioxia resale products. Also, the quality cost is being discussed with a specific customer regarding the perception of quality and for accounting purpose. Conversation is ongoing, for accounting purpose, conservative estimate of JPY 4 billion for provision for product warranty is booked. Upper part of slide 17 is Retail & Printing Solutions. Sales were almost flat at JPY 110.6 billion. Operating income was JPY 0.2 billion, a decrease from the same period of the previous year, excluding the effect of yen depreciation. The lower half shows Digital Solutions. Net sales were JPY 47.8 billion, and operating income was JPY 2.5 billion. Both sales and income decreased slightly from the same period of the previous year, but both are attributable to the sales and deconsolidation of Chubu Toshiba Engineering Corporation. Slide 18 illustrates the three-year trend of orders received and order backlog. The left graph shows the amount of orders received, which was down year on year. This was due to the large scale order booked in the previous year, so the order level this year has been consistent with the normal years. The right side indicates the order backlog, which was down year on year. This was primarily due to the progress in thermal power projects. The order backlog has been steadily increasing, up about 8% over the past three years. Slide 20 shows the equity earnings from Kioxia. The details are provided on the slide, so please take a look at your convenient time. From page 21, I'd like to go over the fiscal year 2022 forecast. Please turn to page 22. The forecast on net sales and operating income remains unchanged from the previous guidance. On the other hand, the projection for income before income taxes is revised up by JPY 30 billion vis-à-vis the previous forecast. This is due to the sales gain on the air conditioning business being approximately JPY 20 billion higher than the previous forecast, as announced on August first. As well as a reflection of equity in earnings of Kioxia in the first quarter. As a result, net income is expected to be JPY 200 billion. Free cash flow will improve by JPY 20 billion from the previous forecast, reflecting the upward revision of the sales gain on the air conditioning business. Shareholders' equity will be JPY 1.28 trillion, as indicated on the right, reflecting the improvement in net income. The figures reflect the special dividend of approximately JPY 70 billion, which we have started to pay out from August 8th. Slide 23 shows the full year guidance for FY22 by segments. The column at far right shows the changes from the previous forecast. For energy systems and solutions, net sales is revised up thanks to the progress in the construction of thermal power plants, while the operating income projection is kept unchanged due to the sales mix. For building solutions, net sales is revised up driven by growth in the elevator and escalator business, while operating income is revised down due to the margin compression of the air conditioner business in Q1. For electronic devices and storage solutions, despite the increase in sales and profit of the chip business, the revised forecast reflects the sales and profit decline in HDD and other business. On a consolidated basis, we have not changed the projection of reaching the previous guidance. Slide 24 compares the changes in operating income from FY 2021 actual to the FY 2022 forecast. Please refer to the third row in the table that is dubbed Total. The bar at far left shows the actual operating income of JPY 158.9 billion for FY 2021. When adjusted for the restructuring costs of JPY 7.5 billion spent in FY 2021, operating income would have been roughly JPY 166.4 billion in effect. In FY 2022, as negative impact, fixed costs for growth will increase by JPY 45 billion, and special committee costs will add up to JPY 13 billion. On the other hand, we expect positive contribution of JPY 15 billion from weaker yen, JPY 31.5 billion from higher sales, and JPY 15.1 billion from improvement of earnings power, and project a full year operating income of JPY 170 billion. As noted, inside the balloon, we expect a total negative impact of about JPY 52 billion for the year, including negative JPY 11 billion semiconductor shortage, and JPY 41 billion from soaring material and logistics cost. We will respond to this by achieving positive JPY 32.5 billion contribution from raising the sales price and another JPY 23.6 billion by improving the product mix. The FY 2022 guidance by major businesses is shown on page 25 and beyond in the appendix section. Please have a look at your convenience. This will conclude my presentation on the results and for the first quarter of fiscal 2022. Thank you for your attention. This concludes our explanation. We would now like to start the Q&A session. From now and during the first 20 minutes, we will respond to questions from media representatives. Please allow me to explain how to ask questions. We will respond to questions from people who are pre-registered with the teleconferencing system. We will first take questions on the Japanese channel, followed by the English channel. If you have a question, please press the star or asterisk button and one on your phone. Please be careful not to press the sharp or pound button, but the star button. After the moderator calls your name and affiliation, please start your question. If you wish to cancel your question, please press star and two. We kindly ask you to stop the live streaming on the web, since the microphone of the person asking the question may capture the voice of live streaming and duplicate your voice. Furthermore, when you are not commenting, in order to prevent the noise of PC keyboards and other unnecessary noise from being captured, please mute your microphone. We will now receive questions from the Japanese channel. Nihon Keizai Shimbun, Yao-san, please. This is Nikkei Shimbun, Yao, can you hear me? Yes. Please go ahead. I have two questions. This is not about the financial results, but privatization and other strategic alternatives are now being considered by the company. What is the progress so far, and what is the upcoming schedule? That's my first question. Mr. Yao, thank you for your question. Concerning the point you raised, we are considering various factors and in considering this process in order to ensure transparency and we want to go through a fair process. Therefore, when it comes to progress and other details, I would like to refrain from responding to such questions during this briefing session. I'm very sorry. Understood. My second question is the current share price? Since April of 2021, the company share price has been trending high, and it may be difficult for you to comment on this, but how do you perceive the current share price level of the company? Thank you for the question. Concerning how we perceive the current stock price level, the company is not in a position to be able to make a comment on this point. Therefore, I would like to once again refrain from responding in detail. Understood. Thank you very much. Thank you. Next question, Nikkei Business, Kotachi-san, please. Nikkei Business. This is Kotachi speaking. I have two questions. My first question's about the energy business, especially the transmission and distribution. Compared to the previous first quarter, could you break it down further and elaborate? For Q1, operating profit is a loss of JPY 2.7 billion and is a deterioration by JPY 4.5 billion. Is that your question? Right. Well, especially. Well, at the moment, there is a progress of the overseas projects and there is an increase of cost. We are seeing an increase in cost. This was already projected to some extent, and the sales is being booked earlier than expected, so we are seeing these in the first quarter. After second quarter, these deteriorating factors will go away and disappear. Are you saying that cost is being booked earlier than the sales? Is my understanding correct? Excuse me, could you repeat the question? Are you saying that the cost is being booked from an accounting perspective earlier than revenue sales? The cost being booked, but so, well, I mean the project is in progress, so the revenue, of course, we are booking earlier sales, but also some of the costs are being front-loaded and there are some projects that are unprofitable overseas, and those losses are being booked during the first quarter. Thank you. My second question about the hard disk. You've mentioned about the product warranty, and so it is a large client, and what has caused, what is the discrepancy from the quality that this large client has been demanding? Is this one-off or for the second quarter, is this impact going to linger about the quality issues? Thank you for the question. Well, about this matter, the client, it is a specific client, customer, and we have some differences in perception of quality. The hard disk, other customers, clients do not have the same issue. We ship the same product and so it seems that depending on the environment that the product is in usage, perhaps there are some differences, discrepancies. Together with the client, at the moment, we're trying to identify the cause. In second quarter, we will be completing to identify the root cause and then it will be solved and addressed. Is this for a large size server? Is that the case? Yes, it is for a data center. If you say a data center, the usage environment. I don't believe that it will largely differ anywhere in the world, the usage environment. Well, yes. Generally, I think your understanding are correct. That is our understanding as well. At a specific part, whether or not the quality is really defective or not, that is also part of the investigation together with the customer. Thank you. I understand. Thank you for the question. Thank you. Next, from Nikkan Kogyo Shimbun, Nishikori-san, please. This is Nishikori from Nikkan Kogyo Shimbun. Yes, go ahead and ask a question, please. For the Energy Systems & Solutions business. For the power generation business. Sorry, your voice is a little bit patchy. I was not able to get your question. Can you hear me now? Yes. Now it's clear. Also, for the What, which system did you say? The power generation system, is that what you're asking about? Mr. Nishikori, can you hear us? Mr. Nishikori? I think he got cut off. Please can you press the teleconference system again? We will come back to you later. Let me move on to the next question. Mr. Tatsumi from Nihon Keizai Shimbun, please. This is Tatsumi from Nikkei. Can you hear me? Yes. I have two questions. First regarding the material prices, the soaring material cost and logistics cost. Looking at the current situation, are the prices higher than expected? Or are you trying to negotiate with the customers to hike the selling price, but you have not been able to reach an agreement with the customers? So vis-a-vis your expectation, what is the situation with the soaring cost and also reflecting that into the selling price? Thank you. In Q1, looking at the profit and loss, if you can turn to page seven, please. I think you're asking about this slide. In the middle, we have JPY -12.8 billion in the middle. In the box we show you the details. The soaring material and logistics cost has been happening for a longer time than expected. To respond to that, we have been going to our customers to raise the prices. Also from the end of last year, we have taken those actions. However, we do need to negotiate this matter with the clients, so we have not been able to realize the hike in the sales price to fully offset the soaring material cost. For the soaring material cost, the negative impact was JPY 9.4 billion, but we are only able to cover that by 50% through sales price hike. Does that mean that the soaring cost is rising longer than expected? Yes, we expect this level to continue throughout the course of this year. We are now taking measures to raise our selling price. In the next nine months, we're hoping to realize those sales price hike to offset the negative impact. Specifically, what kind of materials do you see the cost rising? There are multiple materials like steel, copper, and general commodities, and also with the component makers. In order for them to make the components, they are seeing an increase in their material cost. That is just reflected in the increase in the cost for us. I see. Thank you. My second question is regarding device storage and the business environment. Can you give us a more specific trend? How is the outlook for the chip industry and also the electronic components market? For your device storage business, what is the recent business trend? As the customers trying to accelerate the build-up of the inventory, do you see any change in the demand trend? Or do you see any slowdown? Can you explain by different applications, consumer electronics, auto, and industrial applications? Thank you. Yes. Thank you for the question. In principle, our products are discrete or power semiconductors are what we provide. Now the U.S. chip makers are seeing some slowdown in their business. From that level, we have not been impacted much for our business. For the consumer electronics chips, we do see some signs of slowdown, but for automotive applications or for industrial applications, the market is still quite brisk. For industrials, does that mean that you're not seeing any material change in the demand from clients? That is right. I see. Thank you for the response. Thank you very much. Thank you very much. Nikkan Kogyo Shimbun, Nishikori-san. We are sorry that you couldn't ask your question before. This is Nishikori from Nikkan Kogyo Shimbun. Can you hear me? This is Nishikori from Nikkan Kogyo Shimbun. We can hear you, but there's some noise around you. Really? Is it all right now? Yes, it's all right now. Please go ahead. I'm sorry. I could not ask my question before. By segment, from April to June, Energy Systems & Solutions, power generation systems business is in operating loss. I want to know the breakdown. That's my first question. Thank you for the question. Once again, as I mentioned for transmission and distribution systems, there has been some replacement demand with low profitability. For power generation as well, there are overseas projects with very quick progress. In Q1, there's been some projects with low profitability. The sales is being generated from these low profit projects that is leading to loss. In Q1, we scrutinize our quotation and please understand that something like this will not happen in the second half onwards. Understood. My second question is. Sorry, this is not directly related to the financial results, but in the winter, the government is considering to resume operation of nuclear power plants and so forth to meet a power shortage, and there is soaring electricity price. How does Toshiba perceive this, and do you have any requests? Well, probably, generally speaking, in the winter, if the current situation continues, there's likely to be power shortage, electricity shortage. That is what the company thinks, and that is what I personally think as well. You're asking for a request. To the government, we would like to ask the government to take various measures to prevent such a situation, and Toshiba would like to cooperate as much as possible. We ask the government to take appropriate measures. I'm sorry, it may be an answer that's difficult to answer, but how can Toshiba possibly cooperate? On an emergency basis, some nuclear power plants that are currently suspending operation can resume operation, and these are some of the suggestions that we can possibly make. Thank you very much. Thank you. Now we would like to take questions from the English channel. Anyone, if you have any questions, please press star and the number. From the English channel, anyone who has a question? It seems there are no questions. We would like to take questions from the Japanese channel. Please wait as we will be switching the lines. NHK, Shimai-san, please. This is Shimai from NHK. Can you hear me okay? Yes, we do. I have two questions. First is about the operating loss forecast. For the logistics and material cost increase, you mentioned JPY 41 billion, and also increase in sales. Sales price, JPY 32.5 billion. For the full year, the sales price increase, still there is some cost that cannot be absorbed from price hike. If that is the case, if there is a price hike, would that lead to the loss of opportunities for receiving orders? Thank you very much for the question. For the full year, the forecast, I think slide 24 is where you are looking at. Your question is related to slide 24, as you mentioned. For the full year, soaring material and logistics cost JPY 41 billion total is the estimate, the forecast. And sales price hike is positive JPY 32.5 billion. We cannot absorb the entire soaring cost. First, in Q1, only about half of price hike is realized, and also that the infrastructure-related projects, especially for already, we have already fixed the contract amount. For future projects that we are going to sign, and we can provide a quotation based on the current terms. Also, even with the past contracts, past projects, there are some clients that we have an escalation clause. We are negotiating with our clients. Still, not the whole amount, the total amount can be transferred through the sales price up. During this fiscal year, it may be difficult. May I ask that in that case, for soaring material and logistics cost, if I mean, if it is reflected to the sales price, would that lead to loss of business opportunities? Are you afraid? What did you say? Could you repeat your question? Well, because inflation, the material cost is soaring. If you try to transfer the price and increase the sales price, would you be worried that you will be losing the opportunity, business opportunity, sales opportunity? Well, from a customer's perspective, if the price goes up, and if they are offered a higher price, that is not at all favorable. The clients, the customers also do have a good understanding of the current situation. With negotiation and discussions, we are doing our best not to lose the business opportunity. My second question about the Special Committee-related cost expected, it has increased from JPY 10 billion to JPY 13 billion. If this process lingers too long, the amount, the cost may keep ballooning and increasing. From an accounting financial perspective, till when will this process continue, or by when do you want to finish and complete the process? Well, if the process is extended, instead of saying that it is extended, as a company, the management of course, and also the Special Committee of course, they are deliberately going through the review process. Together with consultant firms, securities companies, and also with their help and advice, some workload increased. That are the reason for the cost increase. It's not that the process is being extended. From a financial perspective, the view, of course, it is better with a lower cost, of course. Still, we need to review all the alternatives, strategic alternatives. As we are in that stage, I think it is reasonable to see some increase of cost. Well, do you think that during this fiscal year that you want to complete the process, so there's no more increased cost? Well, it's not that we want to limit the period, so in order to control the cost. Thank you very much. Thank you for the questions. There are three people, Yamazaki-san from Kyodo Tsushin, Murakami-san from Asahi Shimbun, and Okada-san from Toyo Keizai. We will be receiving other questions from those other gentlemen, and then we will move on to the question and answer session for the investors and analysts. Please make sure that you limit your number of questions to two. Yamazaki-san from Kyodo Tsushin, please. Hello. This is Yamazaki from Kyodo. Can you hear me? Yes, we can. I have two questions. Earlier, this is a follow-up question from the NHK person. At the Special Committee, there is an affiliated cost of JPY 13 billion, which is an increase of JPY 3 billion. What led to this cost increase? What change made this cost increase of JPY 3 billion for Special Committee? As I alluded to earlier a little bit, for the process of consideration and also we want to dig deeper in the consideration process. That's what led to an increase in cost. When you say dig deeper, what is the reason for going deeper in the analysis and the consideration? Initially, we were budgeting JPY 10 billion, and at that point regarding what we are going to do and how deeper we are going to do that, it was just the beginning of the process. We have not accurately calculated the details of the number. As we have made some progress, we have found out that we need extra help from the consulting firms and so forth. Those are some of the findings that led to an increase in cost. I see. Another question is, you announced in July narrowing down the candidates. And there is an offer for going private, and there is also offer to maintain a listing. I think both of those candidates remains to the second round. Those two are totally different directions. When you consider the different options, how do you compare the one versus the other? The direction may be different and how we operate may be different depending on options. From our view, we only have a single view, maximizing our corporate value. What is the best way to maximize the corporate value? To all the stakeholders, what is the best way to benefit the interest of stakeholders? That is the view that we are having to consider the options. When you compare the different ideas and options, how do you compare? Because, if it's two options for which both are moving into the direction of going private, but if you are comparing an idea of one going private and the other maintaining a listing, how do you compare those two? Well, calculating the valuation agnostic of which pathway is taken, the valuation can be done. We believe that we can do a comparison between the two different options. I see. Thank you very much. Thank you very much. Murakami-san from Asahi Shimbun, please. This is Murakami from Asahi Shimbun. Can you hear me? Yes. You are currently considering strategic alternatives. I have a question about this. The privatization versus maintaining listing status. Concerning these two options, what are the pros and cons of them, do you think? Thank you very much for your question. We appreciate your question very much, but we are right in the midst of working on this process. I don't think it's appropriate for me to explain on a personal note the pros and cons. If I do that, I will end up arbitrarily distorting the process. I'm very sorry, but I have to refrain from responding to this question. Understood. Thank you very much. Thank you very much. So, uh- The next question will be the last question from the media. Okada-san from Toyo Keizai. This is Toyo Keizai. Okada. Can you hear me? Yes. Please go ahead. I have a question, one question. At the AGM June, it is related to the result. There was about a support ratio for 60% or 70%. What is the reason that there was a large number of oppositions? Based on the analysis, how does the company view the dialogue with the shareholders? Is that being something that is being discussed? If there's a lot of oppositions against votes, if you do an analysis in the Corporate Governance Code, in the principle, it is stipulated. As it relates to the IR activities, I think that it there should be a analysis done. That is the reason that I ask the question. Thank you. As you mentioned, yes, we have done an analysis. We are doing analysis. Based on the result, well, there are diverse ideas, opinions by shareholders, and we would like to look into them each separately and engage with a dialogue. At this point, is there anything that you have identified that could have been the cause for the high opposition rate? Is there anything that you can share? Well, still, the analysis is ongoing, so once we have the result at a separate opportunity, we would like to report and share. Thank you very much. Understood. Thank you very much. Now we would like to close the questions from the media. Now we'd like to move on to the Q&A session from the analysts and the investors. First of all, we'll take questions from the Japanese channel, and then after that, we will switch to the English channel. So we will get the question first from the Japanese channel. If you have a question, please press star and one. So from Citigroup, Ezawa-san, please. This is Ezawa from Citigroup. Can you hear me? Yes, we can. Thank you. Also on slide 24, you show the waterfall chart on the operating profit. So I have two questions on this slide. The first question is, the item of higher sales, from Q2 to Q4 in the plan. You're seeing JPY 36.1 billion coming from the increase/decrease in sales. But if you think about the impact of, the chip shortage, and if you include that impact in Q1, without the FX impact, the revenue declined. From Q2 to Q4, looking at the sales plan on a year-on-year basis, I think it's going to be a revenue decline of JPY 50 billion. However, despite that, you're saying that there's going to be a positive JPY 36.1 billion on OP from higher revenue. If we think about the chip shortage impact, in effect, this will be +JPY 44 billion. Where do you get this positive JPY 44 billion from? Also, on the same page, I'd like to ask my second question. Looking at the mix, in Q1, it was negative, but from Q2 to Q4, it's going to have a positive impact of JPY 31.8 billion on the profit. Where do you get this number? Can you elaborate, please? Sorry. Well, it's a little bit difficult to hear your second question. Can you repeat that again? Yes. You say difference in the sales mix and other factors. In Q1, it was negative JPY 8.2 billion. From Q2 to Q4, you're expecting a positive impact of JPY 31.8 billion. Where do you get this number from? Yes. Mr. Matsunaga will respond the first question. On the second question, let me try to answer that for one. I don't know if you remember or not, but last year in FY 2021, for environmental measures, we spent roughly JPY 10 billion, which was reflected as loss or cost. This will be absent this year, so we will have an increase of JPY 10 billion that's reflected in the sales mix. Also last year, for the T&D business, we had a large project which was not progressing well. Last year We booked a loss of approximately JPY 10 billion. That project has been completed, so we will no longer have such loss this fiscal year. Those are the major items for this positive number in the sales mix. Also at the respective business, especially, for the distribution retail business, we are trying to shift to high margin business like the service business. Those measures are underway. By realizing that initiative, all in all, we are expecting a positive impact of above JPY 30 billion coming from the sales mix improvement. Let me answer your first question regarding the OP impact from higher sales. In Q1 was negative JPY 4.6 billion, but in the remaining nine months, it's a big positive impact. Recently, we have made an announcement and Toshiba Carrier, TCC, has been divested, and with that sale, it's deconsolidated. As a result of that, the revenue has been coming down, which is quite significant. However, with the other businesses, we are seeing an increase in revenue and profit. That's where we get this number from. The big revenue and profit growth is coming from the Energy Systems and also Device Solutions business. In those businesses, they are driving the sales and profit growth. Thank you. Thank you very much. Next, UBS Securities, Yasui-san. Thank you. This is Yasui from UBS Securities. This may be similar to other questions, but energy systems and solutions, JPY 7.6 billion loss. During the past six years, the net sales was JPY 120 billion, and a loss of JPY 7.6 billion seems quite tough. Now, there might be various factors behind this, but this year, you have very high forecast of JPY 44 billion. Is it correct in understanding that the Q1 performance is in line with your plan or not? JPY 44 billion is your annual forecast. Would you be able to achieve this annual forecast? That's my first question. Secondly, semiconductor business excluding NuFlare Technology, how did it perform? My third question is about your balance sheet. More than JPY 1 trillion of current liabilities. Last year and the year before, it was about JPY 700 billion-JPY 800 billion. Why is there a significant increase in current liabilities? First, Energy Systems & Solutions business. On a full year basis, you are correct. I briefly touched upon this before. I mentioned that overseas, there were some projects with a low profitability, and they are progressing. In Q1, there was loss incurred from these low profitability overseas projects. In the remaining nine months of this fiscal year, we should be able to enjoy more stable profitability as well as in itself. So JPY 44 billion annual guidance, we think we will be able to achieve. If Q1... Was your FY Q1 performance in line with your forecast? Could you please repeat that question? Q1, energy systems and solutions performance, was it in line with your in-house forecast? On an annual basis, our performance is in line. Understood. What was your second question? About the Electronic Devices & Storage Solutions business. You talked about NuFlare Technology, but excluding NuFlare Technology, what is the market environment as well as performance trend? There's increase in net sales and profit, mainly because of NuFlare Technology. Concerning our semiconductor business, it's trending at a very high level, very steadily. Power semiconductors as well as discrete semiconductors for both semiconductor businesses, so they are trending as we expected. On a QoQ basis, net sales and profit are at the same level. Is that the correct understanding? Yes. Sales and the profit is slightly higher, actually. I may have explained about this before, but we have a factory in Kaga, and we are operating at full capacity. We do not have so much leeway, and we are making efforts to be able to produce more lots. There are many orders coming in. However, we are operating at full capacity and we are continuing to make capital investments, so if we can increase production capacity, we can make sure to increase net sales and profit further. Profit as well is trending well, increasing on a QoQ, quarter-on-quarter basis. Is that the question standing? Yes. Thank you. About the balance sheet, Matsunaga-san will respond. I want to confirm your question. When you say balance sheet, are you referring to page 26, Others? I was taking a look at the Tanshin flash report, current liabilities at the very bottom. Other current liabilities. JPY 1.019 trillion. You were referring to the Tanshin flash report. We have not been able to pinpoint what's written in the Tanshin flash report, but there is advance payment and some unpaid bonus that's pushing up other current liabilities. It's concerning particular business. It will be advance payment in some of our businesses. There may be some increase. Understood. Thank you very much. Thank you. Next, SMBC Nikko, Yoshizumi-san, please go ahead with your question. SMBC, Yoshizumi speaking. Can you hear me? Yes, I do. Thank you. I have two questions. First point about the sales price hike. On slide 24 between Q2 and Q4, 72.2% increase, 27.7%, 48%, and that is between Q2 and Q4. What will be the feedback response? What is the feasibility on part of the client customers? My second question is, more of an overall question. This time, shortages of parts components and soaring cost, excluding that, it seems that all of the business segments, the business environment is quite tough. It seems that all of the segments have gone through a decline, decrease in revenue. What is the background reasoning? Is it that Toshiba is losing market position? As a CFO, is there any areas of concern, for example, downside and any concerns weakening business areas? Well, whether we are losing customers or not, no, that is not the sense. Well, some of the customers, well, because of COVID and, or because of the uncertainties, and they may suspend and halt placing orders. Yes, that is very partially but may be happening. I think this applies to Toshiba Tec. Energy, infrastructure, semiconductor related, that is not at all the case that we are seeing some weakening. No. The first question was? Excuse me. Could you repeat your first question? Is about the sales increase. Q1, how were you successful in increasing the sales price? Between Q2, Q4, against the plan, what is your confidence, what is the progress? Could you explain the progress, how confident you are? For Q1, for the JPY 55 billion, well, that was mostly the mass-produced motors and also semiconductors as well, and hard disk related. Those were the areas that the price hike was accepted. Still, at this point, at Q1, the sales increase, we do not believe this has been thoroughly realized. Mass-produced products in the remaining nine months, we will have our customers understand. Well, for the orders that we re- The price revision has already taken place, so the price hike will be realized in the remaining nine months. Infrastructure related, also for very long-lead projects, as I mentioned earlier, there is an escalation clause that is included in the contract. Based on this clause, the price hike could be realized, so we are in negotiation with our customers. I understand. Thank you. That is all. Thank you for the questions. Also, we have two more people who have raised their hands to ask questions. We would like to take the next two as last questions. Okawa-san from Daiwa Securities, please. This is Okawa from Daiwa. I have three questions. My first one is on the Energy Systems & Solutions business. Compared to two, three years ago, I think you have a better management in the project to make sure to avoid loss-making contract. You say that you have some low margin business. Are these the ones which you have received the order many years ago, or is this something more recent? Can you elaborate on how you're managing the margin on the projects for Energy Systems & Solutions? Yes. Approximately three years ago and since then, we have been very selective on the order taking so that we can have rigorous management on the margin. At this point, unfortunately, in Q1 this fiscal year, we had some projects for which we have received the order before that timing. There are some projects where the construction has been progressing, and we do have some remaining low margin projects. With the increase in the material cost, the margin was under pressure further for these projects. Thank you for the clarification. My second question is for HDD business. For the data center business, what is the outlook? Can you give us the outlook from the view of your situation and also the client situation? Looking at our HDD business for data center, at this point, I think, there has been some slowdown, from the peak in momentum, and I think that is the general situation for the whole market. Over the long term, we expect the market to continue to grow. At the same time looking at different customers, I'd like to refrain from making comments on specific clients, but generally speaking, the big data center players are using our products. On that note, looking at the mid to long term trend, we believe we will be able to grow the volume. That is the assumption in our plan. Thank you. My third question is, I think, you're considering different strategic options, and you said that earlier you will not be able to offer the details to secure the fairness of the process. Do you have any indications on the schedule or timing of making the announcement for that process? I understand the intention of your question, but having said that, in terms of the upcoming schedule, I would like to refrain from making any specific answers. Apologies for that. That's okay. Thank you for the response. Thank you. There are no participants on the English channel, so I would like to entertain the next and last question from the Japanese channel. Damian Thong-san from Macquarie Securities. Order backlog, 3% year-on-year. This fiscal year's forecast, could you please explain? Infrastructure and the Energy Systems & Solutions business, almost no change you commented before. For example, you talked before about the possibility of resuming operation of nuclear power plants in Japan and transmission and distribution system. There are various business factors and so forth. Under such circumstances, how do you forecast the order backlog going forward? Thank you for your question. A major factor is energy-related business as well as the Infrastructure Systems and Solutions. For Energy Systems and Solutions business, specifically in the case of Toshiba, we are trying to assume what applies to Toshiba. There are some items in the pipeline and there are some pipeline projects for which we have not been able to receive formal orders yet. We do expect orders for energy systems and solutions projects to increase steadily, and we are trying to get prepared for that. I would like to refrain from commenting in detail about future prospect of nuclear power plants. I have one follow-up question. Is that all right? Q1, you had low profitability projects overseas incurring losses. Coal-fired power plant projects and other overseas legacy projects. What percentage do these kinds of legacy projects account for of total business? Thermal power plant legacy thermal power plant business and other low profitability overseas projects, what percentage do they account for, and how much order backlog do you have remaining? At this point in time, we are not specifically identifying unprofitable projects. If that is the case, we have to have a provision. For the Energy Systems & Solutions group company, including affiliates, we are conducting a detailed review of our projects, and at the moment we are not expecting any significant loss from any of our projects at the moment. Understood. Thank you very much. Thank you very much. Since the scheduled closing time has come, we would now like to end today's briefing. Thank you very much for participating today. Those of you participating by telephone, please do not forget to hang up. Thank you.