Thank you very much for waiting. We'll now begin the OMRON Corporation financial results briefing for the fiscal year ending March 2026. Today's briefing will be conducted based on the presentation materials. The materials have already been posted on our company website, please download and refer to them. The financial results summary and data book have also been posted there, please make use of these as well. English simultaneous interpretation is available at today's briefing. If you would like to use the English interpretation service, please wear the receiver provided to you at the reception desk. We plan to complete at 6:00 P.M. I would like to introduce today's participants. President and CEO, Junta Tsujinaga. I'm Tsujinaga. Thank you for joining us today. Good afternoon. Executive Officer, Senior General Manager of the Global Finance and Accounting Headquarters, Toyoharu Tamoi. I'm Tamoi. Thank you. Executive Officer, Senior General Manager of the Corporate Strategy Department, Global Strategy Headquarters, Kotaro Suzuki. I'm Suzuki. Thank you. I should have introduced myself earlier. I am Okada, Senior General Manager of the IR Department, and I'll serve as today's moderator. Thank you. Next, I'll explain the schedule for today's financial results briefing. After the presentation, we'll move on to the Q&A session. First, we'll take questions from investors and analysts, and then we'll take questions from members of the press. Now with that, let us begin. Mr. Tsujinaga, please go ahead. Good afternoon, good afternoon, everyone. I am Tsujinaga, President and CEO. Thank you. Thank you very much for taking time out of your busy schedule today to attend our FY2025 earnings results briefing. Today, as in our previous briefings, I will first explain the financial results, and then we'll move on to the Q&A session. We would like to take as many questions as possible as time permitting. Thank you very much. Let me begin according to the materials. Please turn to the next slide. Today's presentation will cover three points. First, the full year results for fiscal 2025. Consolidated revenue and profit increased, driven by IAB, resulting in higher sales and higher profits. In IAB, in addition to a recovery in the customer base, continued expansion in AI-related demand led to a significant increase in both sales and profits. Second point, at the full year forecast for fiscal 2026. Overall, we expect demand to remain solid. At the same time, recognizing the uncertainty in the business environment caused by the situation in the Middle East, we've incorporated a certain level of cost impact into our plan or forecast. For full year performance, we plan to achieve higher sales and higher profits, both company-wide and across all segments. In particular, in IAB, we expect to capture expanding investment demand through initiatives such as solutions and new product launches, and anticipate a significant increase in both sales and profits. The annual dividend forecast is JPY 110, an increase of JPY 6 from the previous fiscal year. Finally, as this is the first year of our midterm roadmap, I will explain our initiatives for this fiscal year. Please turn to page four. Before moving into the main presentation, I'd like to explain the changes in disclosure. Please look at the left-hand side of the slide. First, the change in accounting standards. Starting in fiscal 2026, we will change our accounting standards from US GAAP to International Financial Reporting Standards, IFRS. The second point is the reclassification of DMB as a discontinued operation. In connection with the equity transfer of the business, it'll be disclosed as a discontinued operation from the consolidated results for fiscal 2025. Today's explanation will reflect these two changes. Please turn to page six. First, let me cover the full year results for fiscal 2025. This slide shows the results based on US GAAP and after reclassification of discontinued operations. Please look at the shaded section in the center of the table. Net revenue was driven by IAB and increased 7.3% year on year to JPY 767.4 billion. Operating income increased mainly due to higher gross profit resulting from a sales growth rising 12.1% to JPY 59.9 billion. Net income from continuing operations increased due to higher operating income, as well as the absence of temporary expenses related to structural reform recorded in the previous year, rising 116.3% to JPY 37 billion. Finally, net income. After recording a net income from discontinued operation of negative JPY 5.7 billion, net income came to JPY 28.5 billion. Please turn to the next page. This slide shows a comparison with the outlook we shared at the previous earnings announcement. It shows the results before the reclassification of DMB. Net revenue increased 1.5% compared to the previous outlook to JPY 868.2 billion. Operating income increased 6% to JPY 63.6 billion, significantly exceeding the previous forecast. Next, let me go over the results by business segment, starting with IAB. In addition to a recovery in the customer base, the business steadily captured semiconductor investment backed by AI demand as well as investment in secondary batteries for data centers. As a result, net revenue increased 12.3% year-on-year to JPY 409.5 billion. Operating income increased 18% to JPY 42.8 billion, supported by revenue growth representing a significant increase in profit. Next, Healthcare Business. Although the blood pressure monitor market in China remains stagnant, the launch of new products and strengthened sales promotion activities proved effective, and net revenue were roughly in line with the previous year at JPY 145.3 billion. On the other hand, operating income was affected by the factors including U.S. tariff policy and decreased 11.8% to JPY 15.4 billion. Social systems business. Demand for residential storage batteries remained flat from the previous year, and net revenue was roughly in line with the previous year at JPY 144.3 billion. Operating income increased due to progress in cost reductions and price optimization, rising 28.6% to JPY 19.7 billion. The operating income margin also improved significantly to 13.7%. Finally, DSB data solutions. At JMDC, the health big data business performed strongly. For data solution business overall, net revenue was JPY 51.2 billion and operating income was JPY 3.6 billion. Both net revenue and operating income achieved double-digit year-over-year growth. Please turn to the next page. This is a step chart comparing operating income with the previous year. I will explain it in the order from left to right. First is the increase in gross profit due to higher sales. A revenue increase mainly in IAB resulting in a company-wide profit increase of JPY 21.4 billion. Next is the decline in the gross profit margin. Although we made progress in initiatives such as improving the mix and reducing costs, the impact of inventory valuation losses resulted in an overall profit decrease of JPY 5.4 billion. Finally, the increase in fixed costs. As in the plan, we made gross investment mainly in IAB, resulting in a company-wide profit decrease of JPY 12.6 billion. This concludes my report on the results. Let me move on to the forecast for fiscal FY2026. Please turn to page 11. Let me go over our view on the operating environment for fiscal FY2026. Please look at IAB. Overall, we expect a solid business environment. I will explain the details later. For HCB, we expect solid demand in the blood pressure monitor market globally, while China is expected to remain flat year on year. Next, SSB. In both energy storage system business and railway business, we expect a solid business environment. As for DSB, we expect it to continue to perform steadily. As I've explained, we expect a solid demand in each segment. At the same time, uncertainty is also increasing due to the situation in the Middle East and will continue to closely monitor the situation. Next, I will explain our performance plan for this fiscal year. This is a forecast, plan based on IFRS, and for reference, it shows a comparison with FY 2025 results converted to the same standards. Please look at the shaded section in the center of the table. Net revenue is planned at JPY 820 billion, gross profit at JPY 382 billion, and gross profit margin at 46.6%, operating income at JPY 62 billion, and net income at JPY 27.5 billion. For net revenue, we expect high growth to continue, mainly in IAB, and plan for a 6.9% year-on-year increase in revenue. For operating income, in addition to revenue growth and improvement in the gross profit margin, we plan for significant profit increase of 13.9%. We also plan for net income from continuing operations to increase 15.2% to JPY 45 billion. Finally, net income. We have incorporated one-time expenses associated with the spin-off and equity transfer of DMB into net income from discontinued operation. We plan for net income to increase 3.8% to JPY 27.5 billion. Next, let me explain the plan by business segment, starting with IAB. We plan for higher sales and higher profits continuing from the previous year. I have more details to come. Next, HCB. By strengthening sales promotion for the online blood pressure monitor market and expanding our lineup of new products, we plan for net revenue to increase 3.3% year-over-year and operating income to increase 26%. Next, SSB. In addition to expanding SOM for energy storage system, we'll capture demand for equipment upgrades in the railway industry. We plan for a 6.1% increase in revenue. For operating income, in addition to revenue growth, we'll pursue further cost reductions and expect a significant profit increase of 18.7%. Data Solution Business. Against the backdrop of a solid business environment for JMDC, we plan for double-digit year-on-year growth in both net revenue and operating income. Please turn to the next page. This slide shows operating income for fiscal 2026 in the form of a step chart comparing it with the previous year. First, the increase in gross profit due to higher sales. By achieving strong revenue growth, mainly in IAB, we plan for profit increase of JPY 18.8 billion. Next is the improvement in the gross profit margin. In addition to absorbing inflation and higher component prices through price optimization, we'll improve the mix by expanding sales of high value-added products and plan for an overall profit increase of JPY 5.9 billion. Next is fixed cost. In addition to investments in focus businesses that will drive company-wide growth, we've incorporated depreciation and amortization expenses associated with the introduction of company-wide IT systems, and plan for an increase in fixed cost of JPY 19.3 billion. Finally, other expenses. This fiscal year, we plan to record one-time expenses aimed at accelerating growth in IAB. From the next slide, I will explain IAB more in detail. First, I'll explain the trend in order levels. Order levels in the fourth quarter of the previous year increased significantly continuing from the third quarter. The strong upward trend is continuing. There are two major factors behind this. The first is capturing expanding demand related to GenAI, led by X-ray inspection systems, which have continued to see high growth since the Q3. We have been steadily capturing demand through our solutions. Second is the recovery of our global customer base. As FA demand gradually recovers, we have made progress in continuously launching new products and strengthening collaboration with distributors. Expansion has continued since the 3rd quarter. Next, I will explain our view of the operating environment for fiscal 2026, first with the semiconductor industry. Against the backdrop of demand related to GenAI, capital investment in leading-edge semiconductors is expected to remain solid globally. In China as well, we expect investment aimed at localization to continue expanding. For PCB inspection systems, supported by data center demand, we expect strong demand to continue, mainly in Asia. Next, EV and secondary battery industries. For EVs, mainly in China and Japan, we expect the previously stagnant capital investment to gradually recover. For secondary batteries as well, supported by data center demand, we expect investments to expand. In order to continue this into a sales growth, we are working on three major initiatives. First is capturing AI demand through solutions. Second is expanding SOM through new product expansion. Third is expanding the customer base through the Customer Base Map. The key initiatives supporting growth remains unchanged from last year. Rather, we will further strengthen these initiatives, which are beginning to show results at a higher pace. First of all, on capturing AI demand. Advanced control required in the chips and secondary battery industries is precisely the domain where OMRON harnesses its strength. Here, we will deploy industry-specific solutions to an even greater number of customers. Secondly, on new products, in this fiscal year, we plan to newly introduce 22 models. We will roll out competitive products globally to capture demand in each region and increase our market share. Finally, expanding the customer base through the Customer Base Map. By improving sales and marketing productivity, building optimal inventory, and strengthening collaboration with distributors, we will steadily capture broad-based demand. Next, let me explain our efforts to strengthen profitability. This fiscal year, we will strengthen measures to enhance profitability while making growth investments. We expect +1 percentage points year-on-year in OP margin. The drivers are, in addition to strong sales, improvement in GP margin and SG&A ratio. By appropriately passing on rising material and logistics costs through price adjustments and improving profitability through the sale of high value-added products, we will steadily improve the efficiency of fixed cost. Meanwhile, looking back or looking ahead for further growth from fiscal year 2027 and beyond, we will strengthen the development of our focus device businesses as well as invest to reinforce the business foundation. I will explain the dividend forecast on the last chapter. In fiscal year 2026, based on the continued earnings expansion from the previous year, we are planning to raise dividends. The annual dividend forecast will be JPY 110, an increase of JPY 6 year-on-year. Going forward, with a target of approximately 3% in DOE, we will continue to provide stable and continuous shareholder returns. That was the explanation of the fiscal year 2026 plan. Please turn to page 21. This April, the roadmap towards 2030 has started. Building on the foundation of our structural reforms, specific initiatives have already begun. Today, I would like to share the following three points with you. First, IAB. As I said in the financial results section, in fiscal 2025, we're able to turn revenues back to growth. Based on these results, we are beginning to feel confident about largely two things. The first is the competitive advantage of our solutions business. As demonstrated in our capture of AI demand, the innovative applications we create together with our customers carry the unique value and competitiveness that only OMRON, with its advanced control capabilities, can offer. We have many business discussions as we speak, primarily with the semiconductor industry, and we are confident that we can fully meet the expanding needs going forward. The second is the expansion of our customer base. Through stronger collaboration with distributors and the introduction of new products, our customer touchpoints have steadily expanded, providing solid support for this growth. This expansion is creating a foundation for stable growth that is less susceptible to environmental changes. Over these past two years, we tackled structural reforms head-on, which as a result, I feel that framework for IAB to continue to grow has steadily come into shape. However, toward achieving our 2030 target, we are still at the starting line. We need to further accelerate the growth speed of the industrial automation business. Fiscal year 2026 is a critical year in which we transition from completing structural reforms to accelerating growth. As I have already shared, our solution and new product initiatives have already begun to show results. That is precisely why right now what matters most is to spread these results faster and on a larger scale. To that end, we will shift management resources to high-growth areas, centering on our six focus areas and businesses where we will bolster our development structure and selectively strengthen frontline personnel who directly contribute to our revenue growth. To make this growth sustainable, we need to further strengthen the business foundation that supports this. The core of this is the optimization of global operations. In addition to reshuffling the human resource portfolio by optimizing the headcount of indirect functions, we will reorganize production and development bases and transform into a business structure with high efficiency and resilience to change. The costs associated with these initiatives are being recorded from fiscal year 2025 through fiscal 2026. Some measures are already underway. We will execute each one steadily to connect them to solid growth. Finally, on IAB, I've explained the outlook for operating margin. From fiscal year 2025 to fiscal year 2026, one-off expenses for strengthening business foundation will occur upfront. Toward fiscal year 2027, we expect improvement of more than 2 percentage points. We believe we can accelerate the pace of improvement. The investments in strengthening the business foundation are directly linked to future profit growth and streamlining the fixed cost structure. In addition to these effects, the elimination of one-off costs will steadily improve profitability. The path to this improved profitability is already clear. By carrying out the defined measures with a strong sense of urgency, we will ensure the achievement of 16% in operating profit margin in 2030. On the progress of the data services business. Today, I will explain the data health segment. In this domain or segment, we are promoting the commercialization of solutions that leverage health big data to identify risks before the onset or worsening of disease and connect them to prevention and behavior change. The disease risk prediction algorithm utilizing data from both OMRON and JMDC is currently transitioning steadily to the commercialization stage. We are advancing development across various disease areas. Among them, for lifestyle related diseases and sleep related disease, we have already completed accuracy verification. For certain diseases, such as sleep related conditions, we have achieved an AUC level of approximately 0.9, which is generally considered to be highly accurate. Please turn to the next slide so that you'll be able to actually visualize the risk. Let me show you some specific examples. Please look at the left side. Sleep apnea syndrome, commonly known as SAS, is a condition where more than 90% of potential patients are not diagnosed and untreated. With this algorithm, even without special testing equipment, it is possible to visualize the risk of SAS based on medical checkup data and daily vital sign data. This enables even those who were unaware of the condition to seek consultation and treatment at an early stage, leading not only to improved sleep quality, but also to reduction in serious health risk caused by leaving SAS untreated, such as hypertension and cerebral vascular disease. Now, please look at the right side. Gout, one of the lifestyle related disease, is said to have approximately 10 million people at risk in Japan. The key feature of this algorithm is its ability to identify risk before the disease actually develops. By visualizing the risk of onset in advance, it becomes possible to take early preventive action, such as improving lifestyle habits, which is expected to prevent the actual onset of gout before it occurs. Regarding this new data service business, we plan to share more specific details at a briefing scheduled for around autumn of this year. Please look forward to this event. Finally, in this chapter, I will update you on the carve-out and share transfer of DMB that reported at the end of March. This matter is part of the business portfolio restructuring outlined in the medium-term roadmap, and is a decision aimed at accelerating the growth of the entire company or entire group. For DMB to achieve sustainable growth, deeper investment and swift decision-making are essential. However, as a group, we have a clear policy on concentrating our investment in the focus areas, and thus it's not easy to continue investing at the scale required by this business. Since taking office as president, I have repeatedly considered whether we should continue to grow this business within the group or pursue growth opportunities in a different form. As a result, although it was an extremely difficult decision, we concluded that pursuing autonomous growth under a new partner is the choice that maximizes the value for that business. This decision is made with an eye toward sustainable growth for both the group and DMB. We will maintain our collaborative relationship with that business even after the transfer, and we will continue to earn greater trust and expectations from our customers. The closing is scheduled for October 1st, and we will provide a further update on the transfer price once it has been finalized. Next, I will explain the capital allocation in light of this matter. At OMRON, in our roadmap for 2030, portfolio management is positioned as the core of our management strategy. The greatest theme toward 2030 is to gain the strength to win in market competition, mainly in IAB, and to evolve into a strong company that once again achieves growth. The share transfer of DMB is part of this effort. The funds generated through portfolio reform and existing businesses will basically be directed toward focused businesses to drive higher revenue growth and profit expansion. Therefore, in terms of capital allocation, we will prioritize M&A in IAB above all else. In particular, in the device segment, we will carefully select deals that directly contribute to strengthening our customer base, and we will execute them with discipline. Meanwhile, improving capital efficiency is also an important management challenge. Regarding share buybacks, we will make judgments as appropriate, taking into account the share price level, financial soundness, and investment opportunities in IAB. In closing, let me share a message with all of you. As explained today, OMRON, having gone through structural reforms, is now in the process of transitioning to a phase of renewed growth. In particular, IAB has reached the stage where we can demonstrate the tangible results of the initiatives we have pursued. We are by no means satisfied with the situation. What OMRON is aiming for is ultimately the achievement of our 2030 target. Toward the realization, we will execute measures that go beyond the extension of what we have done before in order to lead the growth momentum from the previous year to even greater results. The roadmap for a offensive turnaround is already clear. By raising the execution capability of the entire company, completing each initiative, and steadily accumulating solid results, we will achieve strong growth. That concludes today's presentation. Thank you very much for your kind attention. Now we'll begin the Q&A session with investors and analysts. If you are in this venue and have a question, please raise your hand. If you're participating online and would like to ask a question, please press the Raise Hand button. If you are participating by phone, please press the star button followed by nine on your phone. I'll call on those who will ask questions. To allow as many people as possible to ask questions, please limit your questions to two per person. Now we want to take questions from the people in the venue. Thank you for the presentation. This is from Goldman Sachs Japan Co., Ltd., this is the first question. I think you clearly see a strong demand at this point. IAB AI demand is my question. In quantitative manner, on page 15, order growth, how much of that is driven by AI or AI-related CapEx? On page 22, showing the AI order, AI demand, talking about semiconductors, the secondary batteries industry you mentioned. At the quarter, third quarter, I think, you were talking about 10%, if you were to include semiconductors or secondary batteries, I think within IAB, AI demand could be quite big, I believe. Maybe 20% or 30% could be driven by the AI. How much exactly is AI-related demand within IAB business? Also by region. In Q4, looking at the Q4 revenue, between Japan, it seems like demand is seen mainly in Japan and China. Is that the right understanding? IAB seems to be quite strong, because of them. I want to understand better in quantitative manner. Appreciate your comment on this. Shimura-san, thank you very much. The reason for the strong performance of the order level is first is the AI demand, and secondly, the customer base expansion. The roughly 50/50 is the impact. I think that's the rough image. Now talking about the ratio within the revenue, it's very difficult to give a actual number, but roughly 10%-15% is considered to be related to AI demand. That's how we calculate it. By the regions, there are, you know, orders coming from different regions, but actual demand is seen in East Asia, in Japan, China, the Asian countries, including Southeast Asia. We do see clear demand emerging in those region. Thank you very much. I have some supplementary question. The recent demand growth is super strong. Last year when you talked about the policy in midterm, the competitiveness-wise, the supply capability could be actually checked and, you know, must be demonstrated to accommodate them. You are also showing your US GAAP basis numbers. The profitability-wise, it's seems to be quite, you know, same as in Q4 level, so there's nothing negatives. How about your supply capability? Do you have enough inventories? I have some questions, and I'd started to hear those issues in the market. Are you ready to be able to accommodate and address them properly? In such a growth of demand by 20%, 30%, are you able to accommodate them properly or not? Can you comment on your competitiveness or the supply capability and also your response to them to make sure there's no missed opportunities? I have two parts to look at the supplying situation. First, generally speaking, semiconductor shortage element. The other thing is the Middle East situation, the resin related, supplying capability. Those are the two perspective we need to understand. The first point, semiconductor, perspective. Next year in fiscal 2027, through them, the expected demand by ourselves is already secured in terms of supply. We should be able to okay, that we can supply them. Regarding this, Middle East related factors, at this point we're not really seeing such a emerging, you know, situation. We will need to be closely monitor the situation to come. High risk components, we have already started taking actions by making design changes. I believe we'll be okay for the time being in terms of supply. I understand very well. Thank you so much. My second question is on the last page towards the capital allocation in your presentation. I have some question on there. DMB transfer, you know, it was quite speedy. You made a decision of the transfer of DMB. That's why I want to ask this. Like you said, the share buyback and your concept towards your capital cost, including share buyback. Looking at the net profit on continuing business, it is going up on a steady basis, ROE 10%, 12%. But if you're conducting the share buybacks or using leverage, I think you can well achieve this level even before 2030. According to the recent in the stock market trend and, considering the equity cost, it might be better to go with the leverage. But we need to consider that under this, you know, interest rate rising situation. What is your understanding and view on the capital cost? Maybe you can reinforce the buyback, share buyback, so you can accomplish the ROE 10% earlier. What is your view on this? On this point, among the management, we do have a lot of discussions on this, and we are talking about many different options and that is what's needed for us right now. Looking at the current market condition, especially our mainstay business, IAB, and mainly, you know, AI related business, not just the AI related CapEx. This is more for the plant innovation using AI, that is creating business opportunities in the future. First we need to build the basis for the growth in sustainable manner. That should be focused first. That's why M&A will be with the first priority. That's what we decided. We are talking to many candidates. Of course, it also requires the partner, the seller of course. We will have to look into the three perspectives, the stock price and the integrity of the finance and also the business opportunity, investment opportunities. We want to look at all these elements to make the right judgment. Of course, if we conduct share buybacks in the short term, that can push up the return ROE to get closer to the 2030 target. As the company and a business entity, we want to look ahead at growth in the future, and we want to capture the opportunities right now. That's why we want to prioritize M&A. That's all. Well, now since this is a good opportunity, like you said, AI demand is so strong right now. There are some focus areas you mentioned like in devices. I know you can't really name the specific company. I believe there's been major change also going through in your business environment. Which are the more attractive areas, and what is your thinking behind right now the potential M&A candidates? The biggest, highest priority is we talk about a device business, but what we are focusing more on the Western countries and the customer base in Europe and U.S., that should be the first focus, and we are prioritizing this as looking for the potential candidate. Of course, the conversion to data business is another area, so we can reinforce the resources needed to accomplish them. I don't know what we should call this, as device or system, but we also need to capture such capability. But the customer base in Western country is the area we want to first focus on. Thank you very much. That's all from me. Moving on to the next question. Please raise your hand if you have a question. Mr. Okawa from Daiwa Securities. Thank you very much for the explanation today. My name is Okawa from Daiwa Securities. I have two questions on IAB with regards to order taking trend. Q3 has improved because there's a special demand for AXI, and maybe Q4 was not as bullish on that. I have seen that quarter-on-quarter there's an increase. What is different in Q4 compared to Q3? What about your forecast going forward, including next quarter or so? Thank you. In Q4 basically follows the trend of Q3, and I think it's been very strong and we went along with the trend. I didn't think it would exceed Q3. For AI related we have seen, especially AXI, we have seen stronger demand than Q3. With regards to Q1, we are already feeling very strong demand. There are some seasonality to it. You know, there's always a greater order increase at the end of the year. Maybe even Q1 will not be as high as Q4, we are still receiving strong inquiries and demand in Q1. I think we're quite confident about this. AXI, between Q3 to Q4, have you seen increase in orders in What about FY2026, what is your forecast? I think it said 30%, maybe if you look at the demand it's even better than that. Can you explain a little bit more about AXI? Yes. We're seeing strong order taking. In 2026 we will expect this to continue, maybe until the end of FY2026 we could continue to see strong trend. Would it actually come down in FY 2027? Not at this point in time. You know, maybe because of the CapEx, there may be a wall somewhere. I think for 2026 we will continue to see strong trend. My second question is on price change or price increase. FY2026, excuse me, February 2026 you announced this in China, and I think you have just recently announced in Japan. You have always struggled with the balance between price and share, because if you raise price it's difficult to win share. Because you have been able to increase price, maybe there's been some changes in competitive landscape or, you know, maybe you have been losing shares but you have stopped losing shares and you have been able to increase or you have a mechanism where you can actually win share even if there's a rise in price. Can you explain about that, especially in China? In terms of optimization of price, I think it's true that we have to be very cautious. That's our thinking, and as you point out, because you have to look at the competitiveness of the product and also the relationship with the customers. We take all of those things into account when we find what is the most optimal price. If you look at the current inflation and also the Middle East situation, I think there's a lot more allowance or acceptance towards a price increase. It's not that we're going to play along with that, but I think we will continue to dialogue with the customers to find the most optimal price. It's not raising price just because the competitive landscape has changed. It's not that. I think we want to reflect the external environment and find the most optimal price. With regards to the share in China, do you think you have seen a turnaround? Are you ready to turn around? Have you seen the share decrease stopping? As I have just explained, with regards to the solutions, I think you know, we are as strong in EV battery and chips. We, they are continuing to adopt us in solutions. In fact that we're not losing share, we're seeing greater demand and we're very confident about that. Also, we're implementing new products in China which is more suitable for that market, and we're seeing a nice result of that. As for the new products that were launched, we have been able to actually win shares on that. I think our tactics are working out really well. This will continue on in FY 2026 onward. Thank you very much. Next question. Okay, we are also receiving questions online as well, so we want to move on to those who want to ask questions online. Fukuhara-san from Jefferies Securities, can you hear me? Hello? This is Fukuhara from Jefferies. Can you hear me okay? Yes, we do hear you. Thank you. I have a couple questions. First is IAB order, and also how you built the revenue plan for this year. From Q3 into Q4, the order increased by about 20%. Looking at the, you know, sales trend and similar trend is seen, I believe. There's a JPY 440 billion revenue plan for this fiscal year. You're looking at to have the sales of the second half is also included. If the order could be also coming down according to this number. How did you make this revenue plan to start with? Thank you very much for your question. How we made the revenue plan for IAB. Throughout the year we tend to have more revenue to be booked in the second half, and that is the normal seasonality we have for IAB. For this fiscal year, we are already having a very strong trend to start from the first half. That's why we expect that it's going to stay flat throughout the year in terms of the business in IAB, supported by AI related demand and the recovery in customer base. We have all the visibility of the businesses to come. That's why we're looking at the revenue to stay, you know, flat throughout the year. You mentioned, you might think, there could be some weakness seen. We need to pay attention to the Middle East situation to maneuver the business this year. We want to manage the business by, while also paying enough attention to such risks. I see. Second question is on HCB. Looking at the revenue by region from Q3 into Q4, especially China, revenue declined. This year there's a plan to see the growth in revenue. If possible, can you share us your view on healthcare revenue plan this year? Looking at page 13, this year the revenue growth of healthcare seems to be bigger. Compared to the revenue growth, the profit growth is bigger. Can you also tell us how you made this profit plan for HCB this year? Thank you. Healthcare business. This year, revenue and the profit plan, how we came to these numbers. Okay. I'll have Suzuki-san to answer this question. Fukuhara-san, thank you very much for your question. For fiscal 2025, the year just finished, from Q3 into Q4, Q-on-Q trend-wise, especially it was coming down. I believe that's what you mentioned. There are some seasonal impact from Q3 into Q4. We always have a drop, a huge drop into Q4, especially demand at the year-end or early new year. We tend to see that major impact globally. Also at Q4 there's another point. One difference from the regular year is that final end market inventory, there was a correction. While controlling our revenue by talking to the distribution channels, we did some, we control the inventory, that's why actually saw that drop in Q4 versus Q3 much bigger than the normal years. For fiscal 2026, the revenue for 2026, the main business, the blood pressure monitor. Globally, this business is growing steadily, especially the growth is driven by emerging markets like Asia and Central and South America. They are growing close to double-digit. The biggest challenge in China, even in China, the overall market-wise, we're looking at pretty much flat to this fiscal year. To give you more details, pharmacies such as store sales will be little weaker than last year, but online is expected to grow. They're net netted each other, so pretty much flat to previous year. We are growing our market share. The market-wise it's not growing much, but we plan to grow our revenue by increasing our share. The growing online channel, we are putting resources, including sales and marketing investment more into the online channels, and we also launched a new product for China we have been developing since the structural reform. By introducing them, we make sure to grow our market share. I hope this answers your question, Fukuhara-san. Your profit plan. How can you talk about how you made this profit plan? I understood. For FY2026, profit plan for healthcare business. In FY2025, we had one-off expense that was mainly in Brazil at a plant that was actually taken care of. Now we have no such impact. The cost reduction efforts, as we normally do. Matsuya R&D, that was already announced, we will, we will be incorporating them from the second half onwards. Our blood pressure monitors, there are core components. For core parts they supply the one type for them, and we actually capture them as part of our group. That is one of the reason to see the growth in profit. That's why we are looking at the our raise to be 10% this year. This number, the one-off impact, how much of this is you know, contributing to the profit with this Matsuya impact, how much contribution is expected to profit? I won't be able to share the one-off impact due to the competitive situation. When it comes to Matsuya, they're already listed to the market, and their annual revenue is about JPY 10 billion. Their raise is about JPY 3 billion. Roughly half year was of that amount is included. Understood. Thank you very much. That's all from me. The next question. From the web, from Mizuho Securities, Tanaka-san. Can you hear us? Thank you very much for the explanation. My name is Tanaka from Mizuho Securities. Two questions from me. First question is a clarification on the numbers. In the new fiscal year, if you look at diverse operating profit of JPY 62 billion, if you translate this into US GAAP, you actually add back JPY 6 billion. So the operating profit is probably JPY 68 billion. Is that the right understanding in terms of conventional standard? With regards to the non-continuing discontinued business, I think, have you incorporated restructuring charges in here as well? Can you explain about these two numbers? Tamoi will explain. Let me answer. In terms of IFRS standard and U.S. GAAP standard, the differences in operating profit, you are exactly right. At this point in time, if you go with US GAAP is JPY 62 billion-JPY 68 billion. That's the level. That's the right understanding. Next is on discontinued operations. The profit here is the former DMB, which is actually inflated more than that from then before. As we carved out and transferred the shares, the overseas subsidiaries had capital realignment, and there were some tax expenses that we needed to incorporate. We have tax costs in there. In addition to that, in FY2026, as we carved out, the IT system had to be also carved out. DMB business, there was a cost in order to carve out the IT system for that. It's the IT system. In addition to that, in FY2025 we had that tax expense, they were all added up and it turned out to be the burden in the expense. That is the answer. Thank you very much. One supplementary comment. On page 27, transfer of share is finalized after closing. I think when you announced last time, your, the enterprise value was JPY 81 billion. Was there any difference from that? Will there be any gains or losses? How would that be in terms of P&L? I am unable to give you the details, but in terms of the actual transfer consideration, JPY 81 billion, this is the enterprise value which is already fixed. From there will be cash and equivalents that are needed for working capital DMB. There'll be some estimate of that. We need to look at the balance sheet at the point of closing. Those would determine the actual closing price. We are still working on that, and we're not able to give you the estimate at this point in time. Thank you for your understanding. Understood. The second point is on IAB. In Q4 of FY2025, revenue was +22% year-on-year US GAAP basis. OP margin is more than 12%. In new fiscal year, the revenue is 7.5%, this is at some slowdown in the growth. In terms of profit margin, it's up by 11.5%. That's actually down from Q4. Is there any particular reason for slowdown in the new fiscal year? Are you just being conservative? I think you mentioned about incorporating Middle East situation. Is there anything in particular about Middle East as a risk that you wanted to incorporate, reflect in your estimate for revenue and profit margin? I would like to answer. In terms of revenue, it's not that weak. It's actually exceeding the market growth rate. This is a plan with that sort of determination. You're right about slower operating margin. Q4, because of the end of the financial year, it tends to be a little bit higher. It's not necessarily weak in terms of the new fiscal year. In terms of operating margin, continuing on from FY 2025, IAB will continue to be invested for growth. There will be impact on operating margin because of the growth investment and also, material cost, as I have mentioned earlier, especially chips shortage. The price itself is also rising. The increase in material cost is impacting the Also, we have taken into account situation Middle East as well. There'll be some impact on operating margin. We would like to pass this on in terms of pricing with optimization of price. There will be some time lag. This is what we have reflected in our current plan. That is all from me. Thank you very much. Middle East risk and increase in memory cost, are you able to quantify that? Do you have numbers for that? I think right now we're looking at JPY 3 billion in material related cost. Excuse me, and distribution cost increase. We have added that. Understood. Thank you. The next question, online participant. Inoue-san from Citigroup Securities. Hi. This is Inoue speaking from Citigroup. Can you hear me okay? Yes, we do. Please go ahead. Thank you. I have also a couple questions. First question is also continuation of previous question. The Middle East situation and the impact on the demand by Middle East. In your plan for each segment, how much is incorporated? Do you have any quantitative information? You know, where if there's a stronger risk or weaker risk in different segment and different location. Regarding Middle East, the impact-wise, right now, for each business company, still the situation is not finalized. Currently we're looking at JPY 3 billion as a total impact for the whole company. That's all we have at this point. I see. This JPY 3 billion is the cost increase, right? It's not because of weaker demand, such a volume impact and the impact on profit because of a drop in volume. It's not included in this quantitative number. Yeah, exactly. This is the cost increase portion, and that's what we included in the forecast. Impact on the sales. At this point we are not really seeing any significant impact on the revenue. The AI related, where we are strong at, actually we are seeing growth, so stronger revenue. The Middle East situation is not considered factored in revenue level. Thank you. Thank you so much. My second question is on page 24, you disclose the one of spending in IAB, JPY 3.5 billion profit drop in FY 2025 and JPY 5.5 billion in FY 2026. Can you explain what's included in here? Also for 2027, profit margin is to improve. Slimming down the fixed cost structure wise, can you give us more specifics or details if that's possible? Let me answer this question. There are two major initiatives. One is the improving efficiency of indirect headcounts. Also R&D production operations to be reviewed. Those are two perspectives to generate JPY 3.5 billion in 2025 and JPY 5.5 billion in 2026. In 2027 beyond, we're not expecting these amounts. We will complete these initiatives in 2025 and 2026. That is our intention. Let me also elaborate a little bit more about the human resources. First, we want to accelerate the growth. That's what where we are focusing on. The people on the front side is reinforced. We are reshuffling the portfolio of the people and we are revising the indirect operations by digital transformation or the use of AI. We will try to be more efficient in direct operation. We can reinforce the front people instead. Also our production and R&D operations. Currently, we are revising the product portfolio, and we are allocating more investment into focus businesses so we can be more efficient in operation while maximizing the revenue. For example, shifting the production line, also distribute or consolidate the R&D facilities so that we can create an environment to allow us to have easier actions to get to customers. Thank you very much. Thank you. Thank you for the question. This is the end of the questions for the analysts and investors. Today, at this point, we want to close today's briefing meeting. Thank you very much everyone for joining us today. Thank you so much.