Now that it is time, we would like to start the FY 2022-2023 business results announcement meeting. Today, in the first 20 minutes, our company will make a presentation, then we will move on to questions and answers. For the questions and answers, in the first 20 minutes, we will accept questions from the members of the media, in the next 20 minutes, in the second half, we will receive questions from the analysts and investors. We will accept your questions over the teleconference system. To use the system, you need to be pre-registered. When you ask a question, please ask your question from a place where there will be no ambient noise. We thank you for your understanding. Today, Chairman of the Board of Directors, Mr. Watanabe, has issued a letter to the shareholders regarding the review of the strategic alternatives and for today's disclosed financial announcements and change of representative executive officer. The moderator will read out the Chairman's message. This will be placed on our webpage. Dear Toshiba shareholders, chairperson's letter to shareholders. Dear Toshiba shareholders, as announced on February 9th, 2023, Toshiba Corporation, the company, has received a legally binding proposal from a consortium led by the investment fund, Japan Industrial Partners, and is now assessing the proposal and other strategic alternatives. Going forward, with more direct involvement of the special committee and with the aim of acting in the best interest of shareholders and other stakeholders of the company, the company will conduct necessary negotiations. At the same time, the board of directors of the company recognizes seriously Mr. Goro Yanase's resignation as a Representative Executive Officer and as an Executive Officer announced today. The nomination committee also held today, determined that Mr. Goro Yanase will not be nominated as the director candidate at the next annual general meeting of shareholders. For the sake of shareholders, customers, and employees of the company who continue to support us even in today's difficult macro environment, we feel strongly that there is an urgent need to transform the company. We believe it is important to reach a final conclusion on the strategic alternatives of the company as soon as possible and to start working towards a new stage. With our basic commitment of committed to people, committed to the future, and the values of do the right thing, the board of directors and the management will together make best efforts, and we would like to ask for your understanding and support going forward. Akihiro Watanabe, Chairperson of the Board of Directors, Toshiba Corporation. That was the chairperson's letter and message. In the process of studying the strategic alternatives, once final conclusion is reached, we would like to make a disclosure without delay. In this process, for this meeting today, we would like to refrain from responding questions related to this process. I would appreciate your understanding. Thank you for waiting. I would like to introduce the speakers today. Masayoshi Hirata, Representative Executive Officer, Corporate Executive Vice President and CFO. Yasuhiro Matsunaga, Corporate Officer, Vice President of Finance and Cash Management Division. I myself is from Corporate Communication Division. My name is Hara. For the third quarter of FY 2022, financial results will be explained utilizing PowerPoint. Thank you very much for coming out of your busy schedules. I would like to explain to you the third quarter business results for FY 2022. Firstly, page three. The key points of the financial results, there are mainly two. The first point, the third quarter year-to-date operating income. As we explained at the time of the second quarter, provision for HDD product warranty addressed exchange in the HDD market and goodwill impairment in the printing business, as we explained at the time of the second quarter. In addition, provision for power generation systems, product warranty in the third quarter. As a result of these factors, operating income decreased compared to last year. Second point, full year forecast. Following the third quarter results, operating income is revised JPY 30 billion down from the previous forecast to JPY 95 billion. Although this is a number for reference, net income is also revised JPY 60 billion down from the previous forecast to JPY 130 billion. Please turn to page 6. This is the outline of the income statement. Third quarter year-to-date net sales was JPY 2,370.2 billion, including the impact of exchange rate changes. Net sales was JPY 15.1 billion year-on-year, a mostly flat result. This is after deducting for the deconsolidation impact of Toshiba Carrier Corporation and Chubu Toshiba Engineering Corporation. They affected in the negative direction of JPY 90 billion, and operating income was JPY 8.1 billion. With Electronic Devices & Storage Solutions, Energy Systems & Solutions, Retail & Printing Solutions, et cetera, operating income decreased JPY 79.5 billion year-on-year. Despite a higher non-operating income, net income was JPY 84 billion, a JPY 30.9 billion decrease year-on-year. This number is also after deducting the deconsolidation impact of Toshiba Carrier and Chubu Toshiba Engineering of JPY 7.5 billion. Page seven is the picture of operating income compared with the same period last year. FY2021 third quarter year-to-date actual operating income was, after adding back restructuring cost of JPY 5.6 billion, JPY 93.2 billion. Please look to the right. As explained in the second quarter results, HDD business deteriorated JPY 37.1 billion, and retail and printing business profit decreased mainly due to goodwill impairment. In addition, with provision for power generation systems, product warranty, et cetera, there were a total of JPY 50.5 billion profit decrease factors. Please look at the middle part. The trend explained at the second quarter results remains in place. Factors affecting earning power, such as soaring materials and logistic costs, are minus JPY 20.1 billion. Fixed cost growth for the future increased JPY 14 billion. These costs are offset by the weaker yen effect of JPY 15.5 billion and profit increase of JPY 21.1 billion coming from sales increase. Page 8 is non-operating income breakdown. Mainly due to earnings from the sale of Toshiba Carrier Corporation, income on sale of securities was JPY 91.9 billion, resulting total non-operating income of JPY 112 billion. Page nine is free cash flow. Cash flow from operating activities. Because of semiconductor shortages and bottlenecks in parts and materials, our sales was booked later and payments preceded sales. Operating cash flow was minus JPY 56.9 billion. For investing cash flow, while we are investing for growth with cash inflow from the sale of securities were JPY 30.2 billion. Together, free cash flow were -JPY 26.7 billion. In the bottom half, you can find the equity attributable to shareholders of the company with JPY 1,188.7 billion in addition to net income. There was an improvement in cumulative OCI. However, as the year-end dividend and the special dividend were paid for FY2021, shareholders equity decreased by JPY 17.9 billion from the beginning of the fiscal year. Shareholders equity ratio was 33.9%. Net interest-bearing debt was JPY 211.1 billion as a debt position. On page 10, which has been already explained and the breakdown is provided, please refer to them later. Please look at page 13. Next, I would like to explain the business results by segment. Results breakdown for Energy Systems & Solutions. Net sales were JPY 440.2 billion, a year-on-year increase of JPY 78.7 billion. Operating income or loss was minus JPY 10.9 billion, which was down JPY 19 billion from a year earlier. This operating loss of JPY 10.9 billion was due to the following. Project cost increased, and the provision for product warranty was recorded in power generation systems at Toshiba Plant Systems & Services. In transmission and distribution systems, fuel and transport costs increased in power generation business. On page 14, we would like to provide a breakdown for Infrastructure Systems & Solutions. Net sales were JPY 445 billion. Operating income was JPY 8.3 billion. In public infrastructure, profit decreased with lower sales in social systems business, mainly due to the shortage of parts and materials. In railways and industrial systems, market has recovered in industrial motors in North America and other businesses in industrial systems. Net sales and operating income both increased. For the segment as a whole, net sales increased by JPY 28.4 billion year-on-year, given the effect of weaker yen and while operating income was almost flat. On page 15, Building Solutions. Net sales were JPY 348.4 billion. Operating income was JPY 44.1 billion. For elevator and escalator business, both net sales and operating income decreased, mainly due to shortage of parts, including semiconductors, particularly in Japan. With the impact of deconsolidation of air conditioning business upon completion of share transfer, net sales decreased JPY 86.1 billion, and operating income decreased by JPY 13.8 billion year-on-year. On page 16, breakdown of Electronic Devices & Storage Solutions. Net sales were JPY 600.1 billion and a decrease by JPY 59.7 billion year-on-year. Operating income was JPY 29.2 billion, a decrease of JPY 26.6 billion from a year earlier. A firm market for semiconductors and contribution by the effect of weaker yen and increased sales of mask writers of NuFlare Technology. As in the second quarter, semiconductor business has continued to be strong. Operating income was JPY 48.6 billion. ROS was 15.4%. As for HDDs and others, mobile and desktop markets shrank, and there were adjustments in nearline HDD market and increased the provision for product warranty. Both net sales and operating income decreased year-on-year. On page 17, in the top half, you can find Retail & Printing Solutions. Net sales were JPY 376.8 billion, up JPY 42.2 billion. Operating income or loss was -JPY 8.4 billion, this was a decrease of operating income by JPY 17.1 billion year-on-year. It was due to the impact of goodwill impairment of JPY 20.6 billion attributable to printing business. Details will be explained later. Excluding this impact, operating income was JPY 12.2 billion. The actual state of the business has been firm. In the bottom half, you will find Digital Solutions. Net sales were JPY 158.9 billion. Operating income was JPY 13.5 billion. The business continued to be strong as in the second quarter. On slide 18, we show the changes in orders received and order backlogs over the past three years. Both orders received and order backlog have decreased year-over-year due to large orders received in 2021, but they have remained firm. Please take a look at page 20. This is FY22 forecast. Net sales, operating income, and free cashflow are changed from the previous forecast. Both net sales and operating income are revised downward by JPY 30 billion. The breakdown is explained on the following pages. Reflecting the negative equity in earnings of Kioxia of JPY 33.9 billion in the third quarter, although this figure is for reference only, net income is expected to be JPY 130 billion. Free cashflow, as explained during the previous section, with the continuing trend, it is expected to deteriorate by JPY 80 billion. Slide 21 shows the FY 22 forecast by segment. Please refer to the column on the right this previous forecast. Operating income is revised downward by JPY 30 billion to reflect lower income in Energy Systems & Solutions, Electronic Devices & Storage Solutions, and Retail & Printing Solutions. Page 22 is operating income FY 21 and FY 22 comparison analysis. The leftmost column shows the operating income for FY 21, which was JPY 165 billion, after adding back JPY 6.1 billion restructuring cost. Please take a look at the right. In the HDD market, there was a drastic change caused by the decrease of JPY 41.7 billion. Retail & Printing Solutions decrease in profit, mainly due to goodwill impairment. Provision for power generation systems product warranty results in a total decrease of JPY 62.1 billion. Please take a look at the center. Although fixed costs for growth increased by JPY 34 billion, they were fully absorbed by the weaker yen and also increase in sales. As an emergency measure, we are currently reducing expenses, including fixed costs for growth, to achieve a total of JPY 11 billion improvement during the coming three-month period from January to March. FY 2022 forecast breakdown of each business is shown on page 27 and after in the appendix for your reference. After page 23, as I explained in the second quarter results, I would like to have two additional explanations. First is about the goodwill impairment of Retail & Printing Solutions. It is on slide 24. In Q3, as in Q2, the group carried out an impairment assessment as signs of impairment were recognized due to decline in the share price of Toshiba Tec Corporation, a consolidated subsidiary of the company. As a result, a goodwill impairment of JPY 10.2 billion was recorded. Nine-month cumulative goodwill impairment is JPY 20.6 billion. After the impairment, the balance of goodwill related to retail printing business is JPY 22.5 billion. The impairment was recorded in the group consolidated level based on US GAAP. In Toshiba Tec Corporation's consolidated accounting, most of the goodwill was equally amortized at the end of FY 2021, in accordance with JGAAP. This is the details of the equity earnings from Kioxia. This is the table as usual. For the details, please look at them for your reference. This concludes FY 2022 Q3 consolidated business results announcement. Thank you for your attention. This was the presentation from our company. There is one correction. Slide page 16, by segment information is shown, device and storage breakdown. There, FY 2022 3rd quarter sales, JPY 600.1 is the correct value instead of JPY 610. The correct value is JPY 600.1. Many apologies. We would now like to move on to questions and answers. As for the chairman's message, this is posted on our webpage. We would like to spend about 20 minutes to accept questions from the members of the media. I will first explain how you can ask your question. Question can be accepted from people who have registered beforehand to the teleconference system. We will first receive questions from the Japanese channel and then the English channel. If you have a question, press star 1 on your phone. Not sharp, but star 1. Star. The moderator, if the moderator calls your company name and your name, please ask your question. To withdraw your question, please press star two. Nikkei Shimbun, Yao-san, please. This is Yao of Nikkei Shimbun. Can you hear me? Yes. I have two questions. In the initial explanation, there was the explanation about the Japan Industrial Partners, JIP, proposal. What is going to be the review from now on, and when are you going to make your judgment? The second question is HDD business drop or decline. Why and when do you expect to recover? Please explain. Thank you very much for your questions. From JIP, as we announced on February 9th, we received a proposal from them. The special committee mainly is assessing the contents of the proposal right now. How long will the review continue? I think that is what you were asking in your question. As of now, I cannot answer how long this review process will continue. We will assess properly, and once we have a conclusion, we will, without any delays, explain to you. Hard disk drive business. The data center demand in the third and fourth quarter, we are not seeing recoveries. Recovery is difficult. Sales is declining more than we expected, and the situation is continuing. The timing of recovery. Generally, in the society, the expectation is fiscal year 2023, October to December timing. This is the expected timing to hit the bottom in general, but we need to still watch more carefully and identify. This is all from me. Thank you very much. Thank you very much. Next, from Reuters, Yamazaki-san, the floor is yours. This is Yamazaki speaking. Yes, I can hear you. Thank you. I would like to ask you a question about the case of Mr. Yanase. In 2019, the situation happened. Why did you discover this, and this is coming up as an issue? When did you receive those reports on his case? The power generation systems, provisions, could you please explain further on the provision? Yes. First, regarding the case of Mr. Yanase. Well, regarding the contents covered by the timely disclosure, as well as what is written in the chairperson's letter from, on behalf of the board of directors of the company. Well, from the viewpoint of protecting the persons who reported on the case, we'd like to refrain from further disclosing any information other than what is already provided. We would like to appreciate your understanding on this. Regarding the power generation systems, on this as well, some time ago, well, rather 20 years ago, the order was received by the company, and the sales in 2017 were recorded. Since that time, there were some questions about the quality. Therefore, provisions were booked for quality of the products in order to take necessary measures. It's going to be a little bit complicated, and we have been continuing with the technological review. In December, towards the end of this November 2022, we found that the technological review was done and completed. For the best solution for the customers and the relevant parties, and we made a conclusion on that, and based upon which we decided to account for the provisions. That is all. Thank you. Thank you very much. Just one point for clarification. Regarding Mr. Yanase and when he assumed the office of COO, did you find that case when he took the office as the COO? Just one point for clarification. I would like to respond. This is MC. In the timely disclosure, after the assumption of the executive officer, the report was filed with the company. That happened after he took office as the executive officer. Thank you. Next is Kyodo News, Yamazaki-san Hello, this is Yamazaki, Kyodo News. About the strategic alternative, I have a question. On the 9th, as disclosed from JIP, there was a proposal that was submit. From other consortiums, I would like to know whether you're waiting for submissions from other consortiums? Is the assessment ongoing with other consortiums? My next question is that the JIP consortium, there are lenders that are committed to lend the loan, and there are some talks and people saying that the banks want to get more strongly involved in the management? How do you view the bank involvement in management? Thank you for the question. About other consortiums, I believe that any consortium that has shown interest, they are still studying the possibility. At the moment, JIP and the consortium is now being assessed. For the loan, we have not directly engaged with the banks. The JIP is negotiating with the banks. About that detailed situation, at this point, we are not aware of such fact. The special committee, as they receive any information, it will be part of the discussion and the assessment as well. That is all. Thank you for the answer. About my first question, I want to confirm. JIP, Japan Industrial Partners, is now being assessed their proposal. If Toshiba decides not to accept that proposal, are you going to wait for other proposals, or is this process going to be completed and end? Which is the case? At the moment, the proposal from JIP, yes, it is true that they have submit a proposal. How things will develop, I cannot answer. It's difficult to answer on a hypothetical case scenario. I would like to refrain from making any comments. It is a fact that the Japan Industrial Partners have submit a proposal. It is a fact that special committee has now started the assessment. It has been in the disclosure. That is all. Thank you very much. Any questions regarding the process, as we informed you at the beginning, there are limitations on what we can answer to you. Please limit your questions to the financial results. Nikkei, Tsutsumi-san. This is Tsutsumi from Nikkei. Can you hear me? Yes, I can hear you very well. I have two questions. First of all, about Mr. Yanase. Mr. Yanase, the series of reorganization in the review process, what was his role? For this process, what is the impact on the process of his resignation? This is my first question. The second question is rather detailed question. From the financial results material, I can see on page 22 special committee-related costs. The cost amount is fluctuating compared to the assumption as of the time of November. What is the change in the assumptions? First of all, Mr. Yanase's matter. Executive Officer and COO has been his position. On the other hand, he is a director. In this sense, to the process, he has been involved, and he has been playing a certain role in the process. It's not that Mr. Yanase was doing everything. This is clear. Multiple number of people in the team were doing the work, so not particularly affecting this process. The other question, Matsunaga-san, can you answer? Yes. Special committee cost. For this question, compared to the initial expectation, we are spending more time, more than expected, reviewing the strategic alternative. Considering the situation, we revised this year's expectation. Thank you. Compared to the initial expectation, you are spending more time and less costs. What's the logic? Fixed remuneration and success-based remuneration are there. When the process done, we are paying a certain amount with some parties. As of now, considering the timing, and up until the end of March, are we going to pay? It seems unlikely. Upon this assumption, we have removed certain costs. I see. I can understand very well. Thank you very much. Thank you very much. Next from Bloomberg, Furukawa-san, please. This is Furukawa, Bloomberg. Can you hear me? Yes, I can hear you very well. Thank you very much. Including the privatization strategic alternatives, I have 1 question. JIP's proposal is going to be reviewed going forward. Toshiba, what is the timeline and by when you are expecting to make the final decision? If it is going to continue into next fiscal year, how much ex-additional expenses will be incurred, and it will make it more difficult to run the AGM, and there may be potential impacts on the business operations. If negotiations continue or discussion continue into the next fiscal year, what will be the problem or troubles you may encounter? Could you please explain? Whether or not there is any uncertainty into the future, of course, in this regard, this has caused concern among different stakeholders, so we'd like to sort it out as soon as possible. That will be the best. How much incremental cost will be incurred and towards the administration of the AGM, annual general meeting with shareholders. This is not something to be determined based upon such short-term perspective. Centering on the special committee and so forth, we would like to have a close review of the proposal. At the board of directors meeting, we'd like to make a decision. We would like to proceed with these processes, setting aside the short-term processes. I think that is what the board of directors are thinking. That's all. Thank you very much. Next, Shimai-san from NHK. This is Shimai from NHK. Do you hear me okay? Yes, we do. I would like to ask a question about the process. There are two questions. First, on the ninth, yes, it is disclosed that you received a proposal. I would like to ask Mr. Hirata, have you seen the proposal yourself? If you have any remarks, in short, can you give me your feedback of the proposal? To be specific, the assessment will take place at the special committee, what kind of negotiation, what kind of discussion is expected, especially are requested from the management executive side? Until the proposal was submit during the DD as part of the finance department, I was also involved and also did provide explanation. For the proposal that was submit on February ninth, basically it is going to be assessed by the special committee. To be frank, I haven't seen it. The special committee and the board of directors, for all the stakeholders of Toshiba to enhance their benefit and not just my expectation, but my wish, but it is, I am sure that they will come to a conclusion, such conclusion. Well, for example, any business or shareholder return, is there anything that you could comment on? No. Nothing at this point that I can comment. Thank you. Thank you very much. At this stage, we would like to seek questions from the English channel. Anyone with a question, please press star one on your telephone. English channel? From the English channel, anyone with a question? There seems to be no question. We will return back to the Japanese channel. Asahi Shimbun, Sugiyama-san, please. Asahi Shimbun Newspaper, Sugiyama is my name. Do you hear me? Yes, I hear you very well. Coming back to several questions ago, the costs related to the special committee. Now, the success-based fee, and because time is prolonged and therefore less costs. In other words, this means that you were intending to reach a conclusion by March this year. Was this your expectation? Initially, we wanted to work as fast as we wanted, and one idea, one timeline that we can consider is March. I think that is right, March, yes. The other question related to the process is this time hard disk drive market worsened and this time as well, downward revision compared to the last forecast as well. Performance is worsening. Will this affect your review of the strategic alternatives? In the short term, many apologies that we are causing a lot of concerns to you. The strategic alternative is not about the short-term matter. It is about the future of Toshiba's corporate value. This is about the future. If there are requests, we would like to respond to the candidates, if necessary, from the executive side. What do you mean to provide more explanation about the current situation? Yes, if there are questions, we will answer the questions. Up until 3:00 o'clock the information was not disclosed and within Toshiba confidential, we have not explained to anyone. If anyone requires explanation, we should be explaining. I see. I understand. Thank you very much. Thank you very much. Next, Nakajima-san from Mainichi Shimbun, please. This is Nakajima of Mainichi Shimbun. Can you hear me? Yes, it's clear and loud. Thank you very much. Regarding the reviewing of the strategic alternatives, regarding the proposal from JIP, TOV is about JPY 200 million. What is your take on this pricing? I don't have any take or observation about that from me. Understood. Thank you very much. From the interim announcement as well, do you have downward revisions to the result forecast and the 30% payout ratio for returning to the shareholders? This is the target you have set up, have there been any changes potentially to this target as well? At the time of the second quarter business results announcement and also this time, the financial briefing, we have provided the forecasted dividend at JPY 70 per share at the year-end dividend. We do not have any intention to change this dividend amount. Understood. Thank you very much. Thank you. Any other questions from the media? It is about time. We would like to conclude taking questions from the media. Now, from the analyst and institutional investors, we would like to take questions. Starting from the Japanese channel, and then we will switch to English channel. Starting from the Japanese channel, if you have a question, after the star, press one. Citigroup, Ezawa-san, please. This is Ezawa from Citigroup. I have two questions. First is about JIP, and second is about the results. About JIP, my question is about the preferred negotiation bidder was given to JIP, and we're waiting for the proposal to be submit. I think that was the case. The preferred bidder position. I think originally the deadline was December end, which was postponed, extended to January, and then I think it was then again extended to February. Is that true? Is that a fact? Moving forward, the JIP, the preferred bidder status, until when will it continue? Also, Hirata-san, you mentioned earlier after this preferred bidder situation expires, are you going to receive and will you be open to receiving other proposals? Even now, are you open to receive other proposals? That is my first question. Thank you for the question. Thank you. Between JIP, it is a process that is ongoing with the special committee assessing. Personally, that I was not fully aware of the sense that JIP was given the preferred bidder status and the people, myself, and also the finance department has responded to any questions fairly to any due diligence. It was not a matter of having a preferred bidder status or not, or whether it expires. Any other candidates, if there's any other proposal, the finance will respond to any questions and respond to DD. I understand. Next question is about the results. There is a waterfall chart on slide 22 and about the factors affecting earning power, and there is a commentary. For each line, each item for the next fiscal year, which could be a positive effect for the earnings power. The soaring materials and logistics cost up to Q4, it is expected that the very tough situation is going to continue for some time. Some of the materials costs are coming down also, and I think that the new pricing will kick in, and also the logistics cost perhaps could be reduced for the full year for the next fiscal year. Do you have any outlook for the next coming year? The mix in differences in Q4, I believe that it will contribute positively to Q4 results. Can you explain why? Thank you for the question. As you said, for some of the materials, they were quite highly elevated. Some prices are coming down, as well as logistics cost, I think they are coming down. Based on those, that environment and climate, when creating next fiscal year business plan, the recent development is that more than what we had expected, the situation is deteriorating, which is appearing in the figures. From the year-end, calendar year-end, we have started to review the business plan for the coming fiscal year. Once the review is completed, we would like to explain on that case. In Q4, for the product mix to improve from the previous year, perhaps it has caused some concern. I think I received a similar question at the Q2 results session. Previous year, about the soil contamination and provision for the soil contamination was booked. This year we do not have such provision. About the JPY 20 billion improvement, that was a deterioration last year, which disappears, not happening this fiscal year. It's not a large concern. I understand. Thank you. Thank you very much. Moving on, UBS Securities, Yasui-san, please. Thank you. Thank you for appointing me. Yasui of UBS Securities. I have three questions. This time, operating income JPY 30 billion decrease or downward revision. In presentation material, page 20-22, you talk about one-time factors. This time you are revising down. As the end of this fiscal year, JPY 62.1 billion one-time factor. Will this one-time factor be over this year? Thinking about next year, JPY 95 billion plus JPY 62 billion, will this be the starting point for next fiscal year? This is my first question. Thank you for your question. JPY 62.1 billion. Major ones there are, for one, Retail & Printing goodwill impairment. As I explained, another JPY 20 billion of goodwill is remaining. Now, tech stock price is recovering favorably right now. Honestly speaking, we don't know. We can't tell. Q4, next fiscal year, what will be the stock price of Tec? We don't know. Not alone about only about that, FX trend and also within Tec, MFP and POS business, how will changes take place? With these combined factors, goodwill impairment will be de-determined. I cannot categorically say there will be no goodwill impairment, I think this year the Tec stock price affected us quite severely. Another element is power generation systems provision. Here, a lot or certain place for certain customer, quite much pinpointed to a great extent. Other than that, there is no such problem. This JPY 62.1 billion, next fiscal year, should improve to a great extent next fiscal year. One more thing, just one thing here. Air-conditioning business deconsolidation effect is factored in here. This deconsolidation effect, because air-conditioning business will be gone, this part will be a effect of pulling down, the business result. Thank you. Now for free cash flow, this time operating income JPY 30 billion reduction, minus JPY 80 billion less in free cash flow. Why free cash flow is reduced this time? Next fiscal year, how much will this be one-time factor worsening the free cash flow in 2022? Are there any improvement factors for 2023? Qualitative answer is fine, this is my second question. Thank you for your question. For one thing, many apologies, but profitability is down, therefore, cash in is less than we expected. Basically, although this may be an excuse, but in the third quarter and in the fourth quarter, the semiconductor shortage and with the bottlenecks in the parts, we cannot book sales. In an extreme manner, we purchased 90% of the materials, but the remaining 10% of the materials, we are waiting for them, and we don't get all the materials, and we cannot book sales as a result. In that case, we are making payments and payments are preceding sales, and as a result, this fiscal year's financial results worsen. The customers are determined, and in the next year first quarter, we can book sales April to June, and then we can collect sales. About half of the JPY 80 billion will be the improvement factor for next fiscal year. In energy and social infrastructure also to a certain extent as well, in usual years, in the fourth quarter or so timing, we receive advance payments. That has been a common pattern. We expected about JPY 20 billion from that, but so far, as of today, we are not in a position to receive advance payments, so we have dropped this part for now. Even without advance payments, we are seeing orders coming in. Next fiscal year onwards, we will be receiving advance payments, or even without advance payments, we will be collecting sales receivables. Together, I would say maybe JPY 60 billion we can recover next fiscal year. This is my thinking for the time being. Thank you very much. Finally, Kioxia case. Your company has earnings held, and you have equity method holding, and there is discussion of integrating with a U.S. company being discussed. What is going to be your position about Kioxia going forward? How will you hold or not hold? Thank you for your question. This is a matter difficult to explain. Kioxia deal, once the deal is firm, several years ago, when it became firm, with the other major shareholder, there was the shareholder agreement with that other shareholder. Basically, at that time, it was decided that we will not comment about Kioxia and that we will not participate in management of Kioxia. We cannot comment about Kioxia. We have nothing to comment about Kioxia on our side. Same as hard disk drive, the memory market situation is quite much worse right now. We want to watch in an objective manner. Thank you. There was the policy of IPO in the past. Any change in the policy? Any other options that you might be taking? On this, the biggest shareholder will be determining. In this meeting, I have nothing to comment. I understood. I can understand. Thank you. Thank you very much. Next, from SMBC Nikko Securities, Yoshizumi-san, the floor is yours. SMBC Nikko Securities, Yoshizumi speaking. Thank you very much. I have two questions. Power generation system, the provisions were accounted for only for three months of the third quarter, JPY 13.5 billion was accounted for. Is it correct understanding? Excluding this impact of provision, about JPY 5 billion increase should have been recorded for the increased profit for power generation systems. What would have been the profitability excluding this impact of the provisions? Could you please give us your comment? Thank you very much for your question. For power generation systems provision, it's only accounted for during the third quarter. As in the financial result for the third quarter, we provided for the provisions. As Hirata-san mentioned earlier, this was the case for a specific customer on specific project. Therefore, we do not expect that will be recurring in the future. As you asked the question earlier regarding the amount, and that is correct. The certain profitability has been maintained so far. That is our understanding. Thank you. Understood. Thank you. My second question is earlier at the committee, costs related to Special Committee, you mentioned about the contingent remuneration. You may not be able to provide us with any explanation. What is the criteria for triggering the contingent remuneration? Could you please explain that as well, if possible? For determining the strategic alternatives, do you think that will be regarded as the trigger for the contingent remuneration or any incentives for increasing the share price of the company? Could I have your comment? Thank you for your question. As you stated, I'm afraid that I'm not able to explain these at this occasion. Generally speaking, whenever there is such a deal like this, and then there can be potential various incentives. It is not very surprising incentives in place. Please understand this. Thank you very much. Thank you very much. Understood. Thank you. Next, Daiwa Securities, Okwa. This is Okawa from Daiwa Securities. I have three questions. First is about the semiconductor business. Q3 alone compared to the internal budget, how was the performance? About JPY 4 billion, it was revised downward. Can you explain about the background? I will respond first about the semiconductor. In general, it is favorable. Power semiconductor, discrete, these are performing strong. Some, we do have partially the commercial use that is used for the consumer sector. In November, when we announced Q2, compared to that time, that area, it is pushing down the performance. As a result, the semiconductor is performing weaker. The Forex. At that time, JPY 140 was the Forex assumption. Now JPY 130. In Q4, JPY 130 is the assumption. That is also another pressure, downward pressure. That is all. Thank you. My second question now is about the product mix. In Q2, the forecast, JPY 7.2 billion downward revision. The reason, could you explain about the downward revision? Could you wait for a moment? Thank you for the question. You are saying about the product mix deterioration, JPY 7.2 billion deterioration. That's, there is some low profitability projects that is expected. For that reason, that is a downward pressure. It is a deterioration with the product mix compared to last time. I would like to supplement one major one items. As Matsunaga-san explained, that is also true, also larger items. I said about the consumer-used semiconductor, the back-end process. There were a lot that have been reserved for back-end manufacturing. Some we have to pay for the cancellation. That is also another factor for the deterioration. Thank you very much for the detailed answer. The third question is about Mr. Yanase. It may be difficult for you to comment. As a board member, he will remain as board member. Will he attend board meetings, may I confirm? He will remain in the position as a director. Whether he will attend the board meetings or not, I'm afraid I am not aware of the answer. I do not have the answer. Thank you for your answer. Thank you very much. Analysts and investors, there is no one on the English channel. Finally, one person more from the Japanese channel. Tokai Tokyo Research Center, Ishino-san, please. Thank you very much. Can you hear me? Yes, I hear you very well. Thank you. From my side, sorry that my question is detailed, but hard disk drive business, third quarter and fourth quarter, what is your recovery expectation going forward? NuFlare Technology contribution seems to be greater. I think you alluded to that. Can you explain more about that for hard disk drive? I think there was someone who asked it earlier, and I think I mentioned somewhat. The point is when will the data center demand will be recovering. That will be the point. You may be more familiar, but as we understand and as you must have heard from various sources, around December this year should hit the bottom and should be recovering from them. That is the expectation, and we intend to act accordingly. For NuFlare Technology, as you mentioned, the business is quite strong. We expect to receive orders solidly, continuously, and sales should be booked. Sorry this was although rough, my answer. NuFlare, profit contribution in this sense must be higher, increasing in the semiconductor business? Yes. Sales contribution is growing gradually. The absolute profit amount is also growing too. Thank you. Thank you very much. It is time to close today's meeting, so we'd like to conclude today's earnings call. Thank you very much for your participation.