Kokusai Electric Corporation, will begin the presentation of the Financial Results for the First Quarter of Fiscal Year Ending March 2026. Thank you very much for participating today. My name is Matsumoto from corporate strategy division and public relations and IR. Let me introduce the participants today. Representative Director, President, CEO, Kazunori Tsukada. Senior Vice President and Executive Officer, Financial Accounting, Yoshitaka Kawakami. Today's proceedings will begin with the presentation of the financial results for the first quarter and the forecast for the full year by Kawakami, and it will be followed by the outlook explained by Tsukada. Today's session will be using the Zoom webinar, and the Q&A session will be conducted in Japanese. Participants can choose to listen to simultaneous English as well. This presentation is intended for institutional investors and analysts only, so we will limit the questions only from the analysts and the institutional investors. Please refrain from recording the presentation. Without further ado, let us now begin the presentation. Mr. Kawakami, please start. I am Kawakami, Executive Officer and CFO. Thank you for joining us today for the Kokusai Electric Financial Results Briefing. First, I will provide an overview of our first quarter financial results and full-year performance forecast. The following are disclaimers, which I will skip. First, an overview of the first quarter financial results. Page four are the highlights. Detailed explanations will follow using the subsequent pages. Page five is a summary of the consolidated earnings for the first quarter. Compared to the same period last year, when there was a concentration of equipment shipments to Chinese locals, the first quarter saw a decrease in both revenue and profit. Revenue and profit decreased also compared to the most recent quarter, but for the fiscal year ending March 2026, we plan for both sales and profit to be skewed towards the second half, and as such, the first quarter results were generally in line with the plan. The gross profit margin was 42.9%, which was lower by 2.1 points compared to the same quarter of the previous year, since last year saw a higher profit margin from the concentrated equipment shipments to the Chinese locals. [Foreign language]. However, compared to the full-year results of the first previous fiscal year, there was a 0.3% increase that is generally in line with the plan. This was owing to the increase in higher ratio of high-value added products and equipment sales, despite the more than 10-point decrease in sales ratio to Chinese locals. Additionally, order intake for the first quarter was approximately JPY 53 billion, largely in line with the plan. Page six details the year-on-year changes in sales revenue and adjusted operating profit for the first quarter. In the first quarter, overall revenue decreased by 21% compared to the same period last year. [Foreign language]. The decrease in equipment sales to Chinese locals was due to a concentration of shipments of legacy equipment included in the service business for DRAM during the first quarter of the previous fiscal year, while equipment shipments returned to normal levels in the current quarter. Adjusted operating profit decreased by 44% year-on-year, primarily due to the significant decline in sales. Page seven shows quarterly revenues by business segment. In the first quarter, equipment sales decreased by 28% compared to the same period last year, while service sales decreased by 6%. Compared to the most recent quarter, the ratio of service revenue increased significantly, owing to service sales increase while equipment sales decrease. Page eight shows the sales of legacy equipment for the 300-mm device business and the 200-mm or smaller equipment included in the service business broken down by application. In the first quarter, NAND sales increased by 116% compared to the same period last year, while sales for DRAM decreased by 73% and logic boundary decreased by 8%. Page nine shows sales revenue by application divided into global and China domestic markets. I will first explain the comparison between the first quarter results and the most recent quarter regarding sales to global markets on the left side. Investments into the next generation NAND transition progressed in the first quarter, leading to growth in NAND-related equipment sales. On the other hand, DRAM and Logic/Foundry equipment sales decreased. However, our plan is second-half focused, and the recovery trend for advanced devices continues. Service sales increased, owing to the recovery of sales of legacy equipment and increased component sales. Next, moving on to sales to Chinese domestic customers on the right side. I will explain the first quarter results in comparison to the most recent quarter here as well. NAND-related equipment sales increased significantly in the first quarter, owing to the recovery of investments by major manufacturers. On the other hand, DRAM equipment sales decreased significantly due to the impact of major manufacturers incurring an investment load. Logic/F oundry equipment sales decreased due to weak investments by emerging manufacturers, despite steady investments by major manufacturers. Service sales increased, owing to growth in component sales and the recovery of legacy equipment sales. The sales ratio for China domestic markets decreased by 3 percentage points from 41% in the previous quarter to 38%. Page 10 shows sales revenue by shipment destination. Sales by destination increased year-on-year for Japan and Taiwan, and increased for Japan quarter on quarter. Sales to the U.S. decreased both year-on-year and quarter on quarter, with sales ratio at 3%. Page 11 shows the quarterly balance sheet trends. Total assets resulted in the same total amount as the previous quarter and with increased inventory, with production increased while there was a decrease in cash and cash equivalents, trade receivables, and other receivables. Total capital increased by JPY 2.7 billion from the previous quarter end, primarily owing to increase in retained earnings. Page 12 shows the main financial indicators from the quarterly balance sheet. The equity ratio increased by 0.8 percentage points from the end of the previous quarter to 58.2%. Net debt remained largely in line with the plan at JPY 17.5 billion. Page 13 shows the quarterly cash flow. Operating cash flow exceeded investment cash flow, resulting in free cash flow of JPY 2 billion. Cash flows from financing activities resulted in an expenditure of JPY 4.4 billion due to dividend payments and other items. Page 14 shows quarterly R&D expenses, capital expenditures, and depreciation and amortization expenses. R&D spend for the first quarter was JPY 3.9 billion. The ratio of R&D spend to sales revenue increased to 7.4% due to sales revenue decline. R&D expenses for the fiscal year ending March 2026 are expected to increase by approximately 20% compared to the previous fiscal year. Capital expenditures for the first quarter totaled JPY 2.3 billion. Going forward, we plan to invest a total of JPY 20 billion over the two fiscal years ending March 2026 and 2027 to newly build a demonstration center in the United States. As a result, capital expenditures for the fiscal year ending March 2026 are expected to increase by approximately 10% compared to the previous fiscal year. Depreciation expenses for the first quarter amounted to JPY 3.4 billion. Due to the impact of large-scale capital expenditures in the previous fiscal year, depreciation expenses are expected to increase by approximately 10% compared to the previous fiscal year. Next, we will explain the full-year performance forecast for the fiscal year ending March 2026. Page 16 contains the highlights. Detailed information will be provided using the following pages. Please see page 17. There are no changes to the earnings forecast, as well as the dividend forecast for the fiscal year ending March 2026 that was announced at the time of the full-year earnings call for the fiscal year ended March 2025. The guidance for the fiscal year ending March 2026 projects a 2% increase in revenue compared to the previous fiscal year, a 4% decrease in adjusted operating profit, and a 5% decrease in adjusted net income compared to the previous fiscal year. The gross profit margin is expected to increase by 0.2 percentage points from the previous fiscal year. The initial plan that had already factored in a decrease of JPY 12 billion in sales for general-purpose DRAM due to the indirect impact of tariff policies has been kept as is. The sales mix compared to the initial plan includes adjustments in the timing of new equipment sales and modifications, as well as adjustments in the timing of equipment shipments and shifts between applications. However, there are no changes to the overall full-year earnings forecast. Considering the lead time from production to shipment at our company, the accuracy of the shipment forecast for the second half will improve by the end of the first half. Therefore, we will provide a more detailed explanation of the second half forecast, including the indirect impact of tariff policies at the time of the second quarter earnings call. Page 18 shows the breakdown of sales divided between global markets and the local Chinese market. The graph was presented at the full-year financial results announcement on May 13, and I will now provide an overall update on the current outlook compared to that. First, in the memory segment for NAND and DRAM, as we expected, technology investments driven by device generation shifts are progressing, and equipment demand is projected to increase. Compared to the initial assumptions, there are some fluctuations and differences in strength amongst the four units: NAND and DRAM for global markets and NAND and DRAM for the local Chinese market. Overall, memory demand is expected to proceed roughly in line with the initial plan. However, for DRAM in global markets, compared to the initial assumption, there seems to be more demand for modifications included in the service business than for new equipment demand. Additionally, for DRAM in the local Chinese market, shipment timing is becoming uncertain, and it is necessary to closely monitor order timing. Next, for logic and foundry and other non-memory segments, there are differences in strength between advanced node for global markets, mature node for global markets, and mature node for the local Chinese market. Nevertheless, we will aim to achieve the initial plan overall for the non-memory segment. That concludes my presentation. I am Tsukada, Representative Director and then President and CEO. I will now provide an outlook for the future. Page 20 shows our outlook on the business environment. In the semiconductor device market, active investment related to generative AI continues, and investment in NAND has started to recover. On the other hand, the recovery in general-purpose DRAM remains slow, and the mature node logic and foundry market continues to be sluggish. Based on this situation, we forecast that the WFE market in 2025 will remain at the same level as in 2024, in line with our previous outlook. Compared to our earlier forecast, NAND is slightly negative, DRAM is slightly positive, and logic and foundry is slightly negative. These are the trends we are seeing. For 2026, there are still many uncertainties, but if factors such as tariff policies and export regulations do not worsen from the current situation, we expect mid-single-digit growth. Beyond that, heading into 2029, we believe that the demand for equipment for advanced devices, especially those related to AI, will continue to rise. On page 21, we have summarized the business environment and our company's situation by application. Since the announcement of the full-year financial results for FY March 2025, the updates are as follows. First, regarding NAND, demand in global markets is not as strong as expected, while demand in China is stronger than expected. Second, for DRAM, demand in global markets is stronger than initially expected, particularly with an increase in modification-related demand. Meanwhile, shipment timing for the local Chinese market remains uncertain. Third, for logic and foundry, demand for mature nodes in global markets is weak. In the NAND segment, technology investments aimed at device generation changes are driving increased equipment demand both globally and locally in China. We expect that this technology investment to continue not only through the fiscal year March 2026, but also into the fiscal year March 2027. Additionally, for the local Chinese market, we anticipate further investment aimed at expanding production capacity. For DRAM, with the advancement of HBM, we expect continued equipment demand for generational upgrades and capacity expansions in advanced devices. Although modification demand is higher than initially expected, we still anticipate the demand growth to continue in FY March 2027. General-purpose DRAM recovery remains slow, and we continue to take a cautious view, factoring in the indirect effects of our tariff policies. While investment in China has entered a paused period, we expect a recovery in FY March 2027. For logic and foundry, demand for equipment for advanced nodes, especially GAA, is expected to continue growing. Investment in mature nodes has been weaker than expected. However, in China, major manufacturers continue to invest, and we expect further investment to continue in line with the Chinese government policy to buy smart devices. For power devices, investment in the Chinese market continues, and we expect the demand for our products to keep growing. In global markets, investment remains stagnant, but we have secured initial PORs for new products, and we expect these to continue to contribute to revenue as the market recovers. Looking at the competitive landscape, Chinese equipment manufacturers are gaining the presence in batch diffusion and CVD equipment. However, in the field of high-difficulty film predeposition, where we excel, Chinese players currently have no significant presence. Our market share in batch ALD equipment is expanding. Going forward, while continuing to monitor trends among local Chinese equipment makers, we will remain focused on expanding both TAM and our market share in the advanced device segment. Page 22 shows a transition in our product mix. There are no changes to the product mix outlook from our initial forecast. In FY March 2026, demand for NAND equipment is recovering, and the sales of mini batch ALD systems are expected to grow significantly. As a result, the combined share of batch ALD systems and single wafer treatment is expected to reach 70%. Although the ratio of sales to local Chinese customers, who typically offer relatively high profitability, is expected to decline in FY March 2026, the gross profit margin is still projected to surpass that of the previous year. On page 26, we show the semiconductor device development roadmap along with our catalyst in growth potential. There are no changes to the strategies and the medium-term targets we have explained so far. Our target timing for achieving the medium-term goals remains tied to the year when the WFE market reaches $120 billion. As semiconductor devices become increasingly multilayered, miniaturized, complex, and three-dimensional, we believe there will be growing opportunities to leverage our strength in batch ALD and single wafer treatment systems. We expect to achieve revenue growth that exceeds our overall WFE market growth. In addition, with a higher mix of high-value added products and a lower SG&A expenses ratio due to increased revenue, we expect adjusted operating profit to grow at a faster pace than revenue. Finally, please refer to page 24. On July 10th, KKR sold a portion of shares of our company, resulting in a change of their ownership ratio. We were informed that KKR transferred approximately 30 million shares, just over half of the approximately 55 million shares it held as of the end of March 2025, to institutional investors through a securities firm. As a result, KKR's ownership ratio dropped from 23% to 11%. KKR is no longer our largest shareholder and is also no longer classified as a related party of our company. That concludes our presentation. Thank you very much for your attention. That would be it from briefing from the Kokusai Electric side. We would now like to open the floor for questions. Those that have questions, please press the raise hand button on the screen. We would like to call on you. There will be a selection button that will be available on the PC once we select you, and then please make sure that you unmute yourself before you speak. Now, we would like to appoint the first individual. Yu Yoshida. [Foreign language]. This is Yoshida from CLSA. Thank you. The first question is, for the WFE market of fiscal year 2026, it seems like you are expecting a two-digit growth. If possible, by application, can you share with us your observation? For this fiscal year, even though there may be some shifts, you would be aiming for a higher goal. Specifically for this year, there are some shifts. Going into next year, compared to about three months ago, has there been changes to your observation or how you foresee things? Thank you very much for the question. For the WFE market for 2026, when it comes to the breakdown by application, when we look at fiscal year 2025 most recently, there have been some changes compared to what we initially anticipated. Therefore, overall, it would be the mid-single digits, which would be about $110 billion. Right now, we are not really in a position yet to share the breakdown because we are currently trying to study the contents. Understood. For For example, is there maybe an application that could be the driver? Can you have maybe more of a qualitative comment then? When it comes to AI-related areas, investments into that arena should continue to be strong. That is the outlook that we currently have. It will be the advanced Logic/Foundry area, as well as HBM-related DRAM, which most likely will continue to remain strong. Specifically for NAND, there is a generation shift. That type of investment should continue. When it comes to the strength of that, it is something that we would need to continue to monitor. When it comes to the mature node Logic/Foundry, we would like to expect some recovery. We don't know how strong the recovery will show. That is something that we do need to be observing and discerning. Thank you. As a follow-up, when you look at the full-year guidance, at the time of the second quarter, you said that you will be able to maybe share some details once you understand how the second half will look like. Having said that, the business environment is changing, and there are some risks that are starting to emerge, and there are some upsides that you could be expecting. When we look at the prerequisites of the guidance, it seems like the advanced package area, as well as the DRAM, I think tariff impact, which was looking very conservative. For the second half, is there maybe an upside and downside that you can share with us in terms of which is the bigger risk? When it comes to the multipurpose DRAM, at the beginning of the year, we were thinking about JPY 12 billion worth of risk that we took off. Is the situation going to improve? Will the multipurpose DRAM demand start to increase and rise, and would there be more investments coming in? We don't really feel that. Therefore, as we mentioned before, when it comes to the risk portion, we do believe that we will continue to keep this as risk. When it comes to course, there could be some production increase. We're not really expecting to make an upwards revision to the production level. Therefore, we do need to be monitoring the situation a little more closely and continue dialogue with the customers. What is different from our assumption, that for the NAND generation change investments? It is not as strong as we had initially expected. We are seeing significant recovery. However, when it comes to increasing the volume of the new generation investment, it was not as strong as we had initially expected. That is what we are feeling. Thank you. We would like to take a question from Tetsuya Wadaki-s an, please. I am Wadaki. I'm from Morgan Stanley. I would like to ask about the business environment. In China, there is a substantial investment for NAND, and that is reflected in your first quarter results. Because of some of the restrictions, the evaluation for your business is quite mixed from the market. You do have more visibility with the business, and I'm not really sure what kind of risk you are expecting for that business in China. How should I interpret your situation in China? If I can update you on the impact of the latest export restrictions, for our business with the major Chinese NAND customers, our business is not subject to the restriction. For the orders we have already received or the inquiries we have received so far, we should be able to book that as our revenue in the future. That is what we are expecting to see. Compared to your initial expectation, do you see the risk level to decline, or have you already expected all the risks? We were expecting the two CE risk. There is no upside to what you have expected. I understand that. Tokyo Electron, for etcher, they are not able to sell that. It seems like they are going to be more active in selling other areas, and that includes the batch ALD. Because they cannot drive the sales from the etcher, they may focus on other businesses. Would that have any impact to your competition in China? Are you still able to keep your competitive advantage? For vertical batch ALD equipment, we and other Japanese companies have equal market share. That situation continues unchanged. It depends on the data of 2024, but on the revenue base, our market share is more than 70%. It seems like we are able to maintain our competitive advantage, and we are able to expand our PORs. Especially in NAND area, TSURUGI, our mini batch system, demand is very strong, and there is the increasing number of adoption of our systems. We are able to differentiate ourselves from other competitors, and that situation will remain unchanged. Thank you. Now, moving on to Takashi Shimamoto -san. [Foreign language]. Thank you. This is Shimamoto from Okasan Securities. I would like to also understand how to observe the WFE market. Has already made an earnings call, and based on what they said, for the first half of 2026 calendar year, there could be maybe like a transition period that could be happening. From your eyes, is there signs of such? Looking at just WFE, it appears like that may not be necessarily the case. That is my observation. What would be your observation? If you can comment, that would be wonderful. When we look at the WFE market of 2026, as we mentioned before, it would be the mid-single digits. That would be the scale that we are considering from a full-year perspective. If we were to consider this from a quarterly or maybe like a first half or a second half consideration, how would that look? We have not been able to have a full observation yet. When it comes to our sales expectation, we can understand that. When it comes to WFE as a whole, we don't really know how that is going to develop. To accurately have an observation is quite difficult at this moment. Therefore, when we look at the full year of 2026, we are thinking that this will be the scale that we should be expecting. That's the outlook that we have at the moment. One thing that we could consider as a possibility will be that in 2026, at the beginning, there were expected investments that could be front-forwarded to 2025. Therefore, there could be a drop in the first half of 2026. That is a possibility that still exists. For 2025 to 2026, we don't know how that will present itself. That's something that we're trying to discern. [Foreign language]. Thank you. There's one follow-up. When it comes to your earnings, I think you do have some visibility into the future for January to March period of 2026. That would be the fourth quarter numbers. Is there a big decline in sales? I think it was going to be quite a bit of a skew in the second half, which was your initial observation. I do believe that remains unchanged. [Foreign language]. Is there some kind of a change that you're starting to pick up? As we mentioned in the presentation briefly, when it comes to the expectation of ourselves for the second half, which will be the major DRAM Chinese players' investments, it seems like the delivery period, as well as the investment timing, could be adjusted to a certain extent. That is something that we did mention. How these things will play out, is that really going to be as we had expected in terms of sales, as well as shipment? That is something that we are currently trying to discern. It has been c overed in the news briefly, when it comes to South Korean manufacturers' investments into the U.S., that may start to heighten, which will be March 2026 of our fiscal year. Would that be able to be something that we would be able to capture or not? There are some positives that we do need to understand whether it would be good to capture or not. Thank you. [Foreign language]. That's all taken. Thank you. [Foreign language]. Thank you. Let us take a question from Yamamoto-san of Mizuho Securities. [Foreign language]. My name is Yamamoto from Mizuho Securities. [Foreign language]. This may be our extraordinar y situation, but you said you are going to, they are likely to reach your guidance for the full year, even though the mix of your business may change. Do I understand that there is some other risk? Because the other tale has lowered their outlook for the second half. They also talked about the more slowdown to come due to the market environment. If they are going to talk about the market factor, that means you may be affected by that trend as well. What kind of impact are you expecting? For us, we don't really see any major change of the investment plans of our customers, which will result in the shortfall of our business results in the second half. We do not identify any of those other factors yet. That's why we have not changed our full-year forecast. As we explained, our lead time is the six months. Even if we receive new orders, we should be able to book our revenue and finish our shipment by the end of this fiscal year. At this moment, we are not going to finalize our outlook for the year. We would like to take some more time to scrutinize the situation. If necessary, we will make an adjustment. On page 27 for your NAND-related document, sorry, on page 21. On top right, you are expecting the sales growth in Q4 for the global market. Tsukada-san also mentioned that with the generation change of NAND, the investment could be slightly weaker than you expected. How should I expect that these positive or negative factors, which will have more impact? I talked about if I can give you the breakdown of the situation for the world market and for the local Chinese market. For the world market, we are beginning to see the generation changes. We are seeing an increase from last year, but the growth is not as strong as we have expected. That is the situation. This is the market for demand for the global market. At the same time, for the Chinese local market, compared to our initial expectation, the demand seems to be slightly stronger, offsetting the relative weakness in the global market. That's what I meant. [Foreign language]. Of course, you should not follow what the tail has done. The tail has said that they will see the revenue decline in the second half compared to the first half. For you, you are not seeing the same trend in your business. For our business, we don't see any major change of our customers' investment plans. We do not see that happening within our customers. That is not the situation. Thank you for explanation. Thank you. Now, continue to Shuhei Nakamura -san. [Foreign language]. This is Nakamura from Goldman Sachs. It's a very similar question. Three months ago, when you had an outlook for this fiscal year's sales by application, and this was for China locals and non-China, I think that was a detail that you had shared with us. I would like to ask a question surrounding changes from that disclosure. Based on what you shared for NAND, compared to your assumption from three months ago, the global area is going to be a bit weaker. Then for China local, there could be some uptick opportunity. Is that the right understanding first and foremost? Exactly to your point, yes. When it comes to China local market and the expectation for that compared to three months ago, it's looking a bit more promising. On the other hand, when it comes to non-China, the global area, even though it is minuscule, it may not reach what we were initially expecting. However, overall, as NAND, it would most likely be at levels that we initially expected. Understood. When you shared a dialogue with Wadaki San, you said three months ago for the China local market, NAND was going to be fully priced in, was already priced in fully. Even compared to that, there is more upside? There has been some order intake that has been coming in. After that, therefore, our outlook has changed a bit based on that. For DRAM? Conversely speaking, for the global area, which is non-China, there is some uptick possibility, and then there's some risk for China local market. For the global area, DRAM area, it is very strong, and it's remaining strong. However, when it comes to new equipment and modifications, there could be some shifts. As a strength, it is looking quite promising and strong overall. On the other hand, when it comes to the China local market, DRAM, we want to solidify the order intake sooner. That's how we are trying to negotiate with the customers. When it comes to non-memory Logic/Foundry shift, can you maybe comment on that, please, as well? Exactly what type of shifts that you're starting to see? For the global area, non-China area, the mature node Logic/F oundry is looking a bit weaker than what we had initially expected. On the other hand, Logic/Foundry for China local markets is looking a little stronger than we had initially assumed. For the China local Logic/Foundry, emerging manufacturers, as well as the major manufacturers, it's the major manufacturers that are looking more strong and promising. Understood. Thank you. One follow-up for DRAM. Slightly, when it comes to the HBM area, we do believe that that's going to remain quite strong. On the other hand, there is an HBM generation change timing, which is a bit delayed, and that's something that we're most recently hearing. When it comes to the DDR market, it seems like that is starting to progress, and enterprise could be a bit delayed. Is that going to be a risk versus a DRAM scenario that you are delineating at the moment? When it comes to HBM, there is one very strong leading company's investment that we are very hopeful of. We do believe that that will most likely materialize. We were not initially assuming that the current generation, HBM, in order to improve the performance, the D1b generation, there is some cap expanding that we're starting to see in order to improve the performance. From our eyes, whether it be HBM, I do believe that this would be for HBM. For the multipurpose as well as HBM, there are some maybe differences. I do believe that I think there would be strong DRAM investments for HBM, and that observation remains unchanged. [Foreign language]. Thank you. We would like to take a question from Masahiro Nakanomyo-san. [Foreign langugae]. My name is Nakanomyo from Jefferies. I have one question. For your POR acquisition, for the new memory logic POR acquisition, the situation remains unchanged. Do I understand? Is that the case? In the last three months, there has not been any major change in POR acquisition. For D1c generation PORs, we have been acquiring some of that. There is a trend that they will be adopting the one generation back, D1b too. For DRAM, there seems to be some positive impact we are seeing. For GAA this year, you are going to see a contribution of the JPY 20+ billion. That situation remains unchanged too. GAA generation, the larger foundry in the mass production GAA, the investment of the major foundry has remained unchanged. JPY 20 billion of sales for GAA, the [4S] remains unchanged as well. Thank you for answering my question. That's all. Thank you. Now, moving on, Yoshioka-san from Nomura Securities. This is Yoshioka from Nomura Securities. There are two questions. The first is, in the presentation, you said that there is JPY 53 billion worth of order intake for the first quarter. This number, compared to what you were initially expecting, how is that looking? When you look at the contents of the order intake, is there some characteristics that you would like to share or note? As for the first quarter, the order intake of JPY 53.3 billion as a total. This was an uptick compared to what we were initially assuming. As for the contents, f or equipment orders, It was 41% for NAND, DRAM was 25%, Logic/Foundry was 33%, and others was at 2%. That would be the breakdown. For the services area, overall, there was an uptick. The service had more of an uptick, specifically for modification as well as movement. For the services area composition, it would be component maintenance that would be about 35%. For modification and move, it would be about 60% of the overall service, and legacy would be about 4%. JPY 53.3 billion is an uptick from what we had initially expected. For the services area, when it comes to modification and move, [Foreign language]. You explained about DRAM before. Is it relevant to what you were discussing surrounding DRAM before? Yes, that's correct. Understood. What is the uptick? What is the level of uptick? Is that something you can share with us? [Foreign language]. It's the breadth of how much uptick there was. Overall? It was more than JPY 5 billion, maybe a little less than JPY 5 billion uptick. As overall, that is not just for modification, but overall, that's the number. A little less than JPY 5 billion. On the presentation material, slide 9 and 10, a s a characteristic of the sales for the first quarter, it seems like 38% is for China local markets. Then 45% is for China destination. When it comes to the international companies in China, what would be? It seems like that portion is larger than what it initially was. [Foreign langugae]. Is there maybe like a relaxation of the restriction or something? Is this going to be a structurally strong area that the non-Chinese players in China would be larger as a portion? As for that point, South Korean players, Chinese factory, especially in the NAND space, there is a generation change investment that is very strong at the moment. It's not as if there are export restrictions that actually are being accounted for, and there is a Russian demand. That's not what we're saying. It will be the initially scheduled generation shift that is happening as planned. That would be the nature of the investment, and that's how we observe the nature of the investment. [Foreign language]. Understood. It is not as if there is a Russian demand that we're seeing. Okay, thank you. Thank you. [Foreign language]. We would like to take a question from Mr. Tetsuya Wadaki. [Foreign language]. I am going to ask a similar question. With the numbers that you have announced compared to the initial power, the CMOS sensor demand is slowing down in the advanced logic. The four U.S. major customer is slowing down. It seems like all these other factors are slowing down for other companies. Is that a similar situation you are seeing for your business? [Foreign language]. Depending on the investment trend of each customer and depending on the type of chips they make, their investment situation will be different. We are facing the same situation as other companies. How much of that we include in our budget could be different from other companies. For power devices in China, for SiC, the investment, especially the replacement from 6 in- 8 in, the investment is still continuing. We are still expecting certain revenue from that, and we believe we can realize those numbers in the end. [Foreign language]. For the U.S., the advanced logic, several years ago, I believe you lost some orders or you reduced business with them. That means that you are not affected by slowdown in demand by them. Is that the right situation? For each of the generation, we are able to acquire PORs. If there are investments, we should be able to book the revenue on our end. That is the expectation we have. Given the current situation, [Foreign language]. We think it is slightly risky to include the sales in our expectation. Based on our analysis, we do not include the revenue in our forecast. Thank you. [Foreign language]. Thank you. Are there any questions? [Foreign language]. If you have any questions, please press the raise hand button. There are no more questions from the floor and the attendance. [Foreign language]. We do have some time remaining. However, there appears to be no more questions. Therefore, we would like to conclude the Q&A session. Thank you all very much for attending the Kokusai Electric earnings call. [Foreign language]. After the earnings call, we will be sending out some questionnaires. We would like to leverage this for our IR activities going forward. We would very much appreciate your responding to the questionnaire. We would now like to conclude our earnings call. Thank you once again for your participation.