We will now begin Kokusai Electric Corporation's financial results briefing for the third quarter of the fiscal year ending March 2026. Thank you very much for taking the time to join us today despite your busy schedules. My name is Matsumoto from the Public Relations and Investor Relations Department, and I will be your moderator today. First, I would like to introduce today's participants. Mr. Kazunori Tsukada, Representative Director, President, and CEO. Mr. Yoshitaka Kawakami, Senior Vice President and Managing Executive Officer of Finance and Accounting. Today, Mr. Kawakami will first explain the overview of the consolidated financial results for the third quarter and the full- year earnings forecast, followed by Mr. Tsukada's explanation on the outlook going forward. We will then move on to the Q&A session. This briefing is conducted via Zoom webinar. The presentation and the responses during the Q&A will be given in Japanese. Participants may also select English simultaneous interpretation. Please note that this briefing is intended for institutional investors and analysts only. Questions will be limited to institutional investors and analysts. Thank you for your understanding. We also kindly ask that you refrain from video recording, audio recording, or taking photographs. Now, we would like to proceed to the presentations. Mr. Kawakami, please begin. This is Kawakami, Senior Vice President and CFO. Thank you very much today for participating in the financial results briefing of Kokusai Electric. At the beginning, I will explain the third quarter results and the full- year forecast. Here are the disclaimers for you to note. First is the third quarter results summary. Page four is the highlight. I will go over the specifics from the next page onwards. Page five is consolidated results summary of the third quarter and third quarter year-to-date. Although the October to December third quarter saw a decrease in revenue and profits year-on-year and quarter-on-quarter, both revenue and profits were in line with the revised forecast released at the time of the second quarter results. The third quarter year-to-date saw slight decrease in revenue year-on-year, and each profit line decreased year-on-year due to changes in the product mix and upfront investment for the future. The lower gross profit margin for the third quarter and third quarter year-to-date, year-on-year and quarter-on-quarter, is because of the decrease in production volume and changes in product mix in the second half, as we explained at the second quarter results. Orders received in the third quarter was JPY 62 billion, exceeding expectations. We expect the same trend to continue in the fourth quarter. R&D expenses, CapEx, depreciation, and amortization were largely in line with expectations. Page 6 shows third quarter year-on-year factors for change in revenue and adjusted operating profit. The third quarter year-on-year saw increases in upgrade modifications of existing equipment's performance and functionalities instead of new equipment sales, primarily in DRAM sector, resulting in an increase in service revenue. Conversely, equipment sales declined due to a moderation in sales to China's domestic DRAM sector and in our advanced packaging, which had been robust in the same period last year. Consequently, overall revenue decreased by 7% year-over-year. I will explain the ups and downs by application later. Adjusted operating profit decreased by 19% year-over-year, mainly due to a decrease in gross profit, resulting from lower sales and other factors. Page seven shows cumulative third quarter factors for changes year-over-year. As in the third quarter, cumulative third quarter sales saw a significant increase in service revenue due to an increase in upgrade modifications for DRAM equipment, resulting in new equipment sales, as well as NAND equipment sales growth. On the other hand, as in the third quarter, overall sales revenue decreased by 0.9% year-on-year due to a settling down of sales of DRAM to China and of our advanced packaging. With regards to adjusted operating profit, due to a decrease in gross profit resulting from changes in product mix and a reduction in production volume, coupled with an increase in SG&A expenses, reflecting upfront investments in future-oriented research and development, adjusted operating profit decreased 18% year-on-year. Page 8 shows quarterly revenue by business. In the third quarter, following the first and second quarters, part of equipment demand was replaced by upgrade modifications, resulting in a decrease of equipment revenue year-on-year and quarter-on-quarter, while service revenue increased. The same trend was seen for cumulative three quarters, with the service revenue ratio increasing to 40%. Page 9 shows sales by application for the 300 mm equipment comprising the equipment business and the 200 mm or less legacy equipment included in the service business. In the third quarter, while equipment sales for major applications decreased year-on-year, sales for DRAM equipment continued to increase quarter-on-quarter, continuing on from the second quarter. Cumulatively, for the third quarter, sales of NAND increased year-on-year. The significant decline of DRAM sales was due to a decrease in equipment sales to China, which had been active in the same period last year, and the fact that a portion of equipment sales was replaced by upgrade modifications, which fall in the service business. Page 10 shows revenue by destination. For both the third quarter and the cumulative third quarter, revenue generated from Japan and South Korea increased year-on-year, while revenue generated from the U.S. and China decreased. For the cumulative third quarter, the revenue ratio of the U.S. decreased to 3%, and that of China decreased to 42%. Page 11 shows sales revenue by application, divided between non-China and China manufacturers. Sales in the third quarter to non-China manufacturers grew, driven by increasing demand for AI-related products. Compared to the quarter before, sales increases include equipment for DRAM and Logic/Foundry, as well as upgrade modifications, primarily for DRAM included in services. The third quarter sales to Chinese manufacturers turned upward in DRAM, emerging from the transitional period for investment. In Q3, while sales to non-China manufacturers increased, sales to Chinese manufacturers decreased, resulting in the mix of Chinese manufacturers falling to 31%. Page 12 shows the quarterly balance sheet trend. Total assets at the end of the third quarter increased by JPY 10.6 billion compared to the end of March 2025, due to decreases in trade and other receivables, and increases in inventories and tangible fixed assets. Total equity increased by JPY 16.7 billion from the end of March 2025, due to increases in retained earnings and others. Page 13 shows key management indicators from the quarterly balance sheets. The equity ratio at the end of third quarter was 60.4%, down 0.3 percentage points from the end of the previous quarter. Net debt was largely in line with the plan at JPY 8.1 billion, a decrease of approximately JPY 2.5 billion from the end of the previous quarter. Page 14 shows quarterly cash flows. In the third quarter, operating cash flows exceeded investment flow, cash flow outflows, resulting in free cash flow of JPY 7.3 billion. Cash flow from financing activities amounted to outflows of JPY 4.3 billion, primarily due to dividend payment. Page 15 shows quarterly R&D expenses, CapEx, and depreciation. Third quarter R&D expenditure was JPY 4.2 billion, progressing as planned, with the R&D ratio to revenue reaching 7.4%. The R&D expenditure forecast for March 2026 remains unchanged, and an increase of approximately 20% year-on-year to around JPY 18 billion. CapEx for the third quarter was JPY 4 billion. For the fiscal year ending March 2026, CapEx is forecast to decrease by 10% year-on-year to approximately JPY 18 billion. Currently, as a major capital investment, we are constructing a new U.S. demonstration center involving a total investment of JPY 20 billion over the two-year period of March 2026 and March 2027. Depreciation for the third quarter amounted to JPY 3.6 billion. Due to the depreciation of the Tonami plant completed in the previous fiscal year, depreciation for the year ending March 2026 is expected to increase by approximately 10% year-on-year, reaching around JPY 14 billion. Next, I will explain the full- year forecast for the fiscal year ending March 2026. Page seven explains the highlight. I will explain the specific details on the following pages. Page 18 is the forecast for the fiscal year ending March 2026. Revenue and profits for the third quarter progressed in line with the revised forecast announced at the time of the second quarter results. As the fourth quarter is expected to follow a similar trend, there is no change to the full- year earnings forecast. There is also no change to the dividend forecast. However, third quarter order intake exceeded expectations, and with stronger inquiries to equipment for high-performance devices, we have revised our production plans for the fourth quarter and beyond. The effect of this production increase will be realized in the fiscal year ending March 2027. Page 19 summarizes the factors contributing to the ups and downs in earnings of the forecast for the year ending March 2026 versus last year actual. There are two main factors driving the increase in revenue. One is increased sales of NAND equipment trending upwards, both to non-China and China. The other is non-China sales of DRAM equipment benefiting from risk CapEx and DRAM upgrade modifications, which is included in service. Conversely, there are two major factors contributing to the decrease in revenue. Firstly, as mentioned earlier, sales of DRAM equipment for China, where last year's aggressive investments have settled down. The other is the decrease in equipment sales for Logic/Foundry to non-China. The decline in sales of equipment to non-China Logic/Foundry is attributable to the delayed recovery in demand for mature nodes and the moderation in demand for advanced packaging, which was robust last fiscal year. Sales for advanced nodes, nodes continue to show an upward trend, with cumulative sales of GAA-related products in the third quarter increasing significantly to JPY 12 billion, a 2.4-fold increase compared to the previous year. However, the full- year target of JPY 20 billion is not likely to be achieved. Regarding adjusted operating profit, we anticipate a 24.8% decrease compared to the previous quarter. This is due to reduced sales and products on volumes, a decline in gross profit resulting from changes in product mix, and increased SG&A expenses associated with upfront investments. Page 20 presents chronological revenues to non-China and China from the fiscal year ending March 2023, through to the full- year forecast for the fiscal year ending March 2026. Sales to non-China continues to be on an upward trend since the bottom, March 2024. For March 2026, we anticipate a 9% increase year-on-year, driven by growth in equipment sales for NAND and DRAM, and increased service revenue, mainly from DRAM upgrade modifications. For March 2027, demand for equipments for advanced devices is expected to continue sustaining the upward trend in our revenue. On the other hand, sales to Chinese manufacturers are expected to decline temporarily in March 2026. Although sales of NAND and Logic/Foundry equipments are projected to increase in this period, sales of DRAM equipments are anticipated to decrease significantly due to an impact of an investment transition period. Overall, a 20% decrease compared to the last fiscal year is expected. From March 2027 onwards, DRAM equipment sales is expected to recover, and revenue trend should turn positive. Further, as the pace of revenue growth for non-China is faster than that of China, the proportion of sales to Chinese manufacturers is expected to decline to around 30%. Slide 21 shows the revenues by business. Upgrade modifications, which are recorded as revenue in place of equipment sales, are influenced by device manufacturers' capital investment trend in the same manner as equipment sales, and are also correlated with trends of WFE. Accordingly, going forward, we will separately disclose the revenue from upgrade modifications that is included within service revenue, so that the equipment revenue, revenue from equipment of 200 mm and below, and upgrade modification revenue can be viewed together. We plan to present aggregated historical data as soon as it becomes available. At the time of the second quarter results briefing, we explained that because a portion of equipment demand had been replaced by upgrade modifications within the service business, the service revenue ratio for the fiscal year ending March 2026 was expected to be 39%. For reference, upgrade modification revenue for the fiscal year ending March 2026 is expected to increase 2.5x year-on-year to JPY 28 billion. And the service revenue ratio, excluding upgrade modifications and equipment of 200 mm and below, is expected to be approximately 21%. Page 22 shows equipment revenues by application, combining revenue from global manufacturers and Chinese local manufacturers. This chart does not include upgrade modifications. We plan to disclose application-level data for upgrade modifications once aggregation becomes available. However, the majority of the upgrade modifications in the FY ending March 2026 are expected to be related to DRAM application. For the fiscal year ending March 2026, NAND-related equipment revenue is expected to double compared to the previous year. DRAM-related equipment revenue is expected to decline by 47% due to the impact in investment lull in China and the replacement equipment sales with upgrade modification. Logic and Foundry-related equipment revenue is expected to decline by 11% due to a delayed recovery in demand for mature node and decline in demand for advanced packaging. With regard to equipment for SiC and GaN power devices for 200 mm and below included in the service business, revenue is expected to remain at approximately, at the same level as the previous year due to the slowdown in demand. Page 23 shows the revenues by destination. Compared with the previous four fiscal years, the revenue share for Japan, South Korea, and other Asian region is expected to increase, while revenue share for China and the U.S. and Taiwan is expected to decline. No direct impact in our business with the Chinese local manufacturer has been observed as a result of the state of Japan-China relations. In addition, no Japan impact from trade friction has been observed at factories operated by global manufacturers in China, and the CapEx continues. We will continue to closely monitor indirect impacts, including export regulations and tariff policies in various countries, as well as effects on procurement. I am Tsukada, President and CEO. I will explain the outlook going forward. Please turn to page 25. First, I will provide an update on the outlook for the business environment. In the semiconductor device market, demand related to generative AI continues to drive CapEx by device manufacturers, and investment in equipment for high-performance devices is expected to increase further. On the other hand, CapEx in mature node Logic and Foundry invest application is slowing in Europe, the U.S., Asia, and China, and recovery is awaited. There is no change in expectations for medium to long-term growth. Rather, we feel that the overall semiconductor device market may grow at the pace exceeding our previous assumptions. Regarding the size of the WFE market in calendar year 2025, at the time of second quarter results briefing, we held the view that it would slightly exceed the previous year. However, the prevailing view is now that AI-related investment exceeded expectations slightly, and we recognize that the market likely settled at approximately a 5% year-on-year increase. For calendar year 2026, assuming a further increase in AI-related investment, we revised our view from around a 5% YoY increase, as explained at the second quarter briefing, to around a 10% year-on-year increase. We expect the timing at which the WFE market reaches a scale of $120 billion to be as early as 2027 or, at the latest, 2028. On page 26, I will provide an update on the directional outlook for the FY March 2027, which we explained at the time of the second quarter briefing. Since late November, inquiries for equipment for leading-edge devices have strengthened, and we feel the turning point has been reached. At present, including carryover from the FY March 2026, orders for equipment to be recognized as revenue in the FY March 2027 have been accumulating at a level exceeding the assumptions made at the time of the second quarter briefing. In particular, in line with market trends, demand for equipment for advanced DRAM and Logic/Foundry application has strengthened. At the time of the second quarter results briefing, we explained that we aimed for a year-on-year growth of more than 10% in FY 2027 revenue, combining equipment sales and upgrade modifications. However, in light of the current situation, we have revised our view and believe that growth of more than 20% is achievable. Even excluding the carryover from March 2026, we aim to achieve year-on-year growth of more than 15%, exceeding over or overall market growth. Page 27 summarizes the business environment by application and our status. Sections that have been revised since the second quarter briefing are underlined, and we have also added our outlook for the fiscal year ending March 2027. First, regarding NAND. For global manufacturers, generational transition investment are progressing. However, investment in DRAM is being prioritized, and cautious investment in NAND is continuing. At our company, we are not assuming production capacity expansion investment, and we expect the revenue growth to continue in the FY March 2027 through generational transition investment. On the other hand, for Chinese local manufacturers, both the generational transition investment and production capacity expansion investment are continuing. For FY March 2027, we believe the first half will correspond to an investment transition. However, we expect to be able to record a meaningful level of revenue in the second half due to active investment. Next, the DRAM. For global market manufacturers, investment aimed at the generational transition of and high-performance devices and production capacity expansion is proceeding in parallel, and demand for both equipment and upgrade modification is expected to increase. As demand for commodity DRAM is also recovering, we expect the growth rate in the FY March 2027 to exceed that of the previous year. For Chinese local manufacturers, the investment lull has ended, and equipment sales have been recovering since second half of this fiscal year, and we expect revenue in FY March 2027 to increase. Next, regarding Logic and Foundry. For global manufacturers, sales of equipment for leading-edge nodes centered on GAA continue on the upward trend. In the fiscal year ending March 2027, we expect the growth in equipment sales for FinFET 3 nm generation nodes, as well as recovering equipment sales for advanced packaging applications, driven by the acquisition of new PORs. For mature node applications in Europe, U.S., and Asia, we believe that conditions bottomed out in FY March 2026, and we expect sales to recover beginning in the FY March 2027. For Chinese local manufacturers, while investment by emerging manufacturers is slowing. Active investment by major manufacturers is expected to continue in the FY March 2027, and we anticipate continued revenue growth. Regarding power devices, while our POR share has increased and sales of existing products have been steady, there are signs of the slowdown in equipment demand. Going forward, we aim to achieve growth through increased demand for new products, such as high temperature activation annealing equipment, accompanying the shift to 200 mm wafers and trench gate structures. Page 28 shows trends in product mix. There is no change to the outlook or product mix since the second quarter briefing. After bottoming out in FY March 2024, the proportion of high value-added products, namely batch ALD-capable equipment and single wafer treatment equipment, has begun to increase. In the FY March 2026, in line with the recovery and demand for NAND-related equipment, sales of mini batch systems, which are high-end models of batch deposition equipment, are expected to increase, and the ratio of high value-added products is expected to reach 70%. In FY March 2027, sales of high value-added products are expected to increase further. Page 29 is a slide summarizing the semiconductor device development roadmap, along with our catalysts and growth potential. As the semiconductor devices continue to advance toward greater layering, miniaturization, complexity, and three-dimensional structures, opportunities to leverage our strength in our batch ALD-capable equipment, particularly mini batch systems, as well as single wafer treatment equipment, are expected to increase. Accordingly, we believe that we can sustain revenue growth exceeding WFE growth. In addition, through an increase in the ratio of high value-added products and revenue growth accompanied by reduction in the SG&A expense ratio, we maintain our view that we can achieve a pace of growth in adjusted operating profit that exceeds the pace of revenue growth. Efforts to acquire new PORs for new next generation devices in order to realize these goals are also progressing, and we plan to provide an update on the status of POR acquisition at the time of the full- year results announcement. Please turn to page 13. Our major shareholder, Applied Materials, sold a portion of their holdings of our company's shares to securities firms as of January thirtieth, and the securities firm subsequently resold those shares to institutional investors. As a result, Applied Materials' ownership ratio declined from 10% to about 5%. Although Applied Materials is no longer our major shareholder as a result of this transaction, there is no change in this business relationship between our company and Applied Materials. Page 31 are the key activities for management and the businesses and the ESG initiatives. At the SEMICON Japan, held on in December last year, we conducted a panel exhibition of a newly developed high- insulation heater with a superior environmental performance. Compared with the conventional heaters, this new heater can significantly reduce power consumption, thereby contributing to reductions in GHG emissions through our customers' business activities. In addition, our Toyama site obtained the highest rank rating, Platinum Status, in the RBA VAP audit. We will continue to promote the corporate activities in compliance with the RBA Code of Conduct throughout our entire group. That concludes my presentation. Thank you very much for your attention. This is all for the presentation from our company. We should like to move on to questions and answers. If you have a question, please press the hand raise button on your screen, and we will appoint the person to ask the question, and the person whom we appoint will receive the speaking rights on your account. Please select using your PC to unmute, and then please move on to your question. First of all, Yoshida-san. Yu Yoshida-san, please select unmute and move on to your questions. Thank you very much, CLSA Securities, Yoshida speaking. I have a question about the forecast, slide 25, WFE. You are reviewing WFE increase, and if you have any increased perspective by up, please let us know in addition to the 10% overall. And for 2026, increase by up, if you can have 2026 forecast by up and by regions such as China and non-China, I very much appreciate it. First question is about WFE. For WFE, this time— WFE outlook for 2026, we raised by app or by device app. YoY situation is the following: for NAND, + 15%. DRAM, + 20%. Logic/Foundry, 3% or so. This is the outlook we have revised to. Moving on to the next question, page 26. Pardon, page 26. Here, by application, we do not have all the details ironed out yet, but broadly, the blue part here, equipments, about JPY 170 billion-JPY 175 billion. The green part, upgrade modification instead of new equipment, about JPY 30 billion, is the sense of direction that we have. And this upgrade, this will continue mainly to be in DRAM for upgrades and for equipments. In particular, which equipment is going to increase qualitative, comment would also be appreciated, or if any sequence. The blue equipment part, DRAM will, yes, will grow strongly in our expectation. Next is the leading edge or advanced Logic/Foundry. And then for the green upgrade portion, upgrade modification for DRAM purpose will be, close to all. Thank you very much. And my second question, next year's profitability. Other than the usual marginal profitability, maybe with more value-added mix may be improving. And for recent situation, we may have to think about cost increases. How will profitability change going into the next year? If you have any thoughts as of this stage, please let me know. This fiscal year, as I touched upon earlier, production decreased a lot this year. This affected us. We have not been able to recover the fixed costs, but for next fiscal year, production will increase significantly, plus product mix will improve as well. This year is going to be the bottom for gross profit. Next fiscal year, more than we initially budgeted for this fiscal year at the beginning of the year, we want to reach gross profit level. Because we can expect sales to increase more than 20% upside overall, profit margin can raise several points compared to this year. I see. Thank you. This is all from me. Thank you. Thank you very much. Let us take a question. Nakamura, a question from Nakamura-san of Goldman Sachs. Shuhei Nakamura-san of Goldman Sachs, please unmute yourself and raise question. Thank you very much. This is Nakamura from Goldman Sachs. So about the slide 26, you are showing your outlook for your sales next fiscal year. Three months ago, you were expecting about 10% growth, so there has been upward revision of 10 percentage points. So what exactly has changed in the last three months? I think that there was some change in DRAM and Logic. Can you talk about the difference against three months ago? And also, if you can give me the breakdown of the change in the market outlook and your POR acquisition, can you give me the comment? So out of the growth, so the active investment from DRAM, that had accelerated. That explains the majority of the upgrade. Especially from the production increase of HBM and shift to HBM4. So for like a commodity DRAM, I mean, non-HBM manufacturers. So those manufacturers specify specializing in the commodity DRAM, their investment is also increasing. And for Logic and Foundry, the leading edge, 2 nm GAA on top of that, as we mentioned, FinFET, the 3 nm investment, therefore, the production increase is seen. And on top of that, for advanced packaging, we are seeing the recovery of our sales as well. That is the situation. And can you also give me the breakdown of the change of the market outlook and your POR acquisition? So for our POR acquisition, for DRAM and Logic/Foundry, POR is already frozen, so there are no major changes. But for advanced packaging, so for within the deposition area, our business was mainly focused on deposition. But on top of that, the for like, the thermal, the processing or heat processing, that is the, the new, the business opportunity we are seeing. Thank you. For GAA-related sales, originally, you were expecting JPY 20 billion, and you kind of hinted you are not going to reach that target. Can you talk about the background behind that? Hi. So the largest foundry in Taiwan, it continues to be active, but compared to what we had expected, the shipment is not going to reach our expected level. There is going to be some push out. That is the feeling we're getting. So now we feel it's going to be slightly difficult to reach our target of JPY 20 billion. It's not like, the appetite for investment has slowed down, or there are any changes for our POR situation. That is not what we mean. Thank you. My second question is about the WFE outlook. You are expecting 10% of the growth now. As we listen to the briefing of other SDE manufacturers, they are more bullish about the outlook. It seems like the JPY 120 million, we may reach that number this year. What is your outlook for that? As you gave us some breakdown, Logic and Foundry is showing a 3% increase, and it seems like there is some weakness in the mature node. Do you think there could be upside opportunity there? As you say, WFE could fluctuate over time. As of now, what we see is 10% of the growth. In the absolute level, it's going to be around JPY 118 million. It will be coming close to $120 billion. We would not deny that possibility. For Logic and Foundry demand by application, the weakness from Logic and Foundry, as you ask, within the mature node investment in all regions in the world, including China, there seems to be slight weakness. That's why we are taking a cautious view. Thank you very much. Thank you very much. Next is Shimamoto-san from Okasan Securities. Please, please unmute and then speak. Thank you very much. This is Shimamoto from Okasan Securities. I have two questions. Would asking two questions be all right? That's fine. The first question is about WFE outlook. China, when we look at China only, then 2026 WFE outlook, can you share with me your outlook? China only 2026 WFE. The 2026 WFE, if we divide to China and non-China, China, as of now, is -5% or so, is our outlook. And non-China? One-five, 15, is our view. I see. Thank you very much. And then my second question, sales revenue. Third quarter actual versus fourth quarter outlook. I want to ask about the balance between the two. If I misunderstand, then please correct me, but third quarter seems stronger than expected. Was there any demand that was realizing, realized ahead of time? And then fourth quarter, not much different compared to the third quarter, which is profit coming down quite much. If third quarter was stronger than expected, then I can understand. If not, what is going to press profit margin? Can you explain? Third quarter, more or less, when we said at the time of the second quarter, I think materialized as we set them, but reality is a bit to the upside. And mostly because of the front loading from the fourth quarter, therefore, full-year outlook is no different. And in case of mix, the conventional equipment, more skewed to conventional equipment, therefore, profit margin a bit down. And fixed costs also take place a lot in the end of the year, therefore, fourth quarter overall profit margin is expected to come down. Ah, thank you very much. I see. A follow-up question, fourth quarter, considering the market environment compared to the third quarter, fourth quarter sales can be greater. In that case, fourth quarter, if fourth quarter is on the upside, next fiscal year's outlook of 20% or more growth, will this growth rate for next fiscal year be coming down? Will the next year growth be less? As of now, the fourth quarter outlook, we have due to the production situation, we do have the visibility of the fourth quarter now. We have lead time necessary to produce, which means customers with this need for CapEx is increasing in demand, but any big, big movement of demand from, the fiscal year in 2027 to the fourth quarter, we do not see such a big movement. I see. I understand about the probability, certainty of the fourth quarter. Thank you. Thank you very much. So, let's move on to Yoshioka-san of, Nomura Securities. This is, Yoshioka of Nomura Securities. I also have two questions. First question is about the competitive landscape. So your vertical, the heat processing reactor, the competitor is now going to release the new type of the processing reactor. So do you think that may cause some change in the landscape? And the largest competitor, what do you see their position is? And the competition against the Chinese local players, can you talk about any change in the competitive landscape? So, as you mentioned, in Japan, there is a competitor, and the number of units that is treated that is going to increase. And they have introduced a new model at the SEMICON Japan. And we also have the equipment that with the similar number of units to be processed. We are already have started the sales of those new equipment, especially for memory makers, adoption is progressing. So extra large batch, if you call it, in that area, we are taking the lead. That is our recognition. And as for the Chinese local SPEs, in the non-critical technology area where we don't need to differentiate ourselves, we understand the competition is becoming more fierce. But in the area where we are strongest in, for the high value-added deposition equipment, for the conventional batch ALD and the mini batch ALD, in those area, there is no entry of the Chinese local makers in those areas. Thank you very much. Thank you. And my second question is about the latest situation. The order in Q3 exceeded your expectation, as you commented. Can you also talk up the level of the orders and the, the content of the other orders? Do you see pick-up in the momentum for your new orders? If that's the case, in FY March 2027, from the third quarter, are you expecting to see a Q on Q increase in the orders? Is that the kind of outlook you have for next fiscal year? Can you talk about the current, the status and the outlook for next year? Talking about our orders in Q3 this year, the new order was about 20% higher than our expectation. The DRAM for the global regions and for Logic and Foundry, and within services for the components, the orders exceeded our expectation. For the full-year basis, when we made announcement of our second quarter results, we lowered our order outlook by JPY 20 billion, but it seems like our order is going to be slightly above our original expectation on the full-year basis. It seems like our full- year order is going to be that level. Sales for March 2027, if we talk about the trend, by different customers, the required delivery date, it will be linking to our sale. And depending on the demand, when the demand from each customer will be seeing- we will determine our orders, and we don't really know if there is going to be a stable increase on the quarterly basis. There may be some fluctuation depending on the timing of when the demand from each customer is seen. Thank you. So as an image from the second half of this year to the first half of next year and the second half of next year, you are still expecting the upward trend, right? Yes. There will be an increasing trend, but over time, but we don't really know if it will be like the straight increase, but there may be some fluctuation over time. And also, the closely related to orders for our production in FY, the April, sorry, the March 2027, in the first half. There will be about a 10% increase in our utilization. We expect the utilization to be higher in the first half. So that is another information I want to share. Now I understand the situation. Thank you. Thank you very much for your question. Next is Nakanomyo-san of Jefferies, please. This is Nakanomyo of Jefferies. Thank you very much. In GAA, I want to ask further. FY 2025, a bit less than JPY 20 billion, but FY 2026, what is your expectation as of this stage? Do we have the number? Let's see. Please go ahead. For March 2027, GAA, basically about JPY 20 billion plus, any slides from this fiscal year will be topped up, that is, the sense of the scale. The intention of my question is, earlier we heard the breakdown of WFE. In the case of your company, memories will be because of the some delayed projects. Memories maybe stronger growth than WFE, but on the other hand, Logic/ Foundry, if GAA is not going to grow that much yet, then compared to WFE, GAA may not be growing that strongly for FY 2026. That is what I wanted to ask. Investments for GAA, the Taiwanese biggest foundry manufacturer is mostly dominating the investments. But the Korean comprehensive chip manufacturer's North American plant will be also investing, resulting in some additions. The Taiwanese biggest foundry's GAA investment may have actual customers behind the scenes and may act even stronger. Depending on this, there can be further upside or not. Then the legacy part is where competition is becoming more harsh. Is that right? For Logic/Foundry, both legacy and advanced, PORs first take place and then CapEx takes place. Customers' production increase investments. How strong is this investment among the customers or not, will be the determining factor, especially Chinese local manufacturers, especially those small and medium-sized manufacturers. We do not have sufficient forecast updated from them yet. How much movements will there be, and how much demand movements will there be or not, will affect our Logic and Foundry sales of our company. I see. Thank you very much. Thank you very much. Do we have any other questions? If you have a question, please use the Raise a Hand function on screen. Are there any other questions? We still have some time left, but there seems to be no further questions, so we would like to conclude the Q&A session. Thank you very much for participating in today's briefing. After the session, we will send out the questionnaire to all participants. We would greatly appreciate your cooperation, as it will help us improve our future IR activities. With that, this concludes today's session. Thank you very much. Thank you very much.