So altogether, this is going to be a two-hour and twenty-minute session. To introduce the speakers today: Takeshi Isobe, Corporate Vice President, CFO; Corporate Executive Officer, Corporate Vice President, CRO, Shunsuke Onishi; Corporate Executive Officer, Corporate Vice President, COO, Yoshinami Takahashi; Corporate Executive Officer, Corporate Vice President, COO, Megumi Shimazu; Corporate Executive Officer, Corporate Vice President, CTO, Vivek Mahajan. So these are the five speakers for today, and my name is Sabe from PR and IR Office. I'd like to serve as a moderator for this session. Thank you very much for your cooperation. First of all, Mr. Isobe, over to you. Hello? Ladies and gentlemen, my name is Isobe, CFO. First of all, thank you very much for taking the time out of your busy schedule to attend today's Fujitsu IR Day. I will report to you the progress on our Medium- Term Management Plan and our growth strategy. So this year is the last year of the current Medium-Term Management Plan. I will talk about the progress towards the targets of the Mid-Term Management Plan and also the growth driver beyond the period of current MTMP. These are the topics I'd like to cover. First of all, I'd like to confirm the positioning of the current Medium-Term Management Plan as part of our opening session. So this is what I repeat always, but this is our purpose: to make the world more sustainable by building trust in society through innovation. This is our purpose. Once again, all of our corporate activities are conducted in order to realize this purpose. So putting this purpose in the center, this is our Fujitsu Way or the basic principles of the company. Our values are Aspiration, Trust, and Empathy. These are three values we cherish. And from this point onward, I'd like to talk about the progress against our Medium-Term Management Plan. So first of all, we have a vision for 2030 and broadcast that to the current Medium-Term Management Plan. O ur vision for 2030 is being a technology company that realizes net positive through digital services. B ased upon this vision, our current Medium-Term Management Plan is an important period to prepare for the realization of this vision, to achieve the business model and business portfolio transformation, support to customers' modernization efforts, and to enhance international business profitability. This shows the overall performance here, including the period of the previous Medium-Term Management Plan. We have the profit situation for seven years, and we excluded the Device Solutions results, which turned out to be a discontinued business. So while working on the business portfolio transformation, the profitability has increased considerably. On the right-hand side, you see a three-year period starting from 2023, which is the period of the Medium-Term Management Plan. For the two years and up to 2024, our revenue and adjusted operating profit have grown steadily, and we are making progress steadily towards the targets of 2025. Consolidated numbers and Service Solutions. So these are the results so far, as I explained so far. For the business drivers and the drivers of revenue and profitability is the Service Solutions business. At the bottom of the bar graphs, you see the annual increment in the profitability: JPY 120 billion altogether over the three-year period, plus JPY 20 billion, plus JPY 40 billion, plus JPY 50 billion, as you see. For the three-year period, service solution has a plan to achieve a JPY 200 billion increase in profitability. For the single year, plus JPY 70 billion, plus JPY 50 billion, and this year, 2025, we try to achieve a JPY 70 billion increase in profitability. While achieving the growth through the driving force of a service solution, we have made steady progress as compared to the Medium-Term Management Plan. I'd like to talk about the key strategies here. On the left-hand side, revenue growth for the domestic Service Solutions. Domestic IT service market is growing thanks to the increase in the demand for digital transformation and modernization. The CAGR between 2023 through 2028 is supposed to be 6.5% for the general market, but ours is 9%, which is outpacing the market growth. What is driving this growth is, as you see on the right-hand side, the Uvance and Modernization. In 2022, combining Uvance and Modernization sales together was JPY 280 billion, but it increased up to JPY 680 billion in the past two years, 2.5x. Service Solutions account for 30%. In 2025, we plan to achieve a 36% increase altogether and 40% of the total. Uvance and Modernization are indeed the key to our growth. Profitability remained quite strong during the period of the current Medium-Term Management Plan. On the left-hand side, the gross margin ratio in the past three years has remained at the level of 1%-2% growth. There are mainly three points here. Number one is the transformation of delivery. As I discussed earlier, standardization and automation of delivery are the key activities. And also, we are paying attention to the utilization of AI. This has just started recently, but at the same time, this means that this shows the gross potential for the future improvement in profitability going forward. And the value-based pricing strategy and optimization of the human resources portfolio are the important driving force for the improvement of profitability. On the right-hand side, from a different perspective, international region's performance. Low profitability in international regions used to be a major issue, but we went ahead with the carve-out of low-profit businesses and transformation. It is not sufficient, but we are getting healthier through these activities. In fiscal 2024, adjusted operating margin was higher than 4% this year. We have a plan to achieve 5% this year. Of course, we would like to achieve further growth going forward. Now, up to this point, I talked mainly about the Service Solutions, but I'm supposed to talk about other areas that are also related to the Medium-Term Management Plan. On the left-hand side, business transformation, System Product business, we have Fujitsu Fsas Technologies and Network businesses, w e established 1FINITY. T o make them as the independent entity with the production and sales activities combined, we are trying to speed up the decision-making by the business and to achieve higher efficiency. Right-hand side shows the transformation of the business portfolio carve-out of non-core businesses, Fujitsu General transfer, and other activities. Major activities have been completed. It took some time, but we spent sufficient time to identify the best partner, and optimal partnering was achieved. Once again, I will come back to the business of Service Solutions. Once again, based upon the annual steps and the targets, I would like to talk a little bit about the goal of 2025. You see on the left-hand side, adjusted operating profit in the three-year period is indicated. It used to be JPY 160 billion in 2022, and in 2025, it went up to JPY 360 billion, increase of 200, and the breakdown is JPY 155 billion by revenue growth and JPY 120 billion through profitability improvement, and negative JPY 75 billion because of the investment, and the right-hand side shows the progress so far every year, so looking at the total for each year, as you see at the bottom, JPY 75 billion in fiscal 2023, JPY 55 billion in fiscal 2024, and JPY 70 billion positive in fiscal 2025. Looking at the different elements and factors, year-by-year, we have made steady progress so far, increasing the revenue and the improvement of profitability for both of them in 2025. If we continue the momentum in the past two years, we will be able to achieve the target of 2025. And the gross investment is continuing, and of course, in 2025 as well. So we are making steady progress in order to achieve the target. Lastly, I would like to talk about the achievement of the plan as well as the mid- to long-term growth drivers, which are the key points of today's presentation. The key to the growth in revenue and profitability are naturally Uvance and Modernization, which are in the middle. And what raises the probability of success for these activities is consulting. And also, the technology is our competitive edge, which is the driver for acceleration of the growth. Each of these topics will be explained by the business leaders in charge. So to generate the cash through these activities and continuously conduct the capital allocation in an optimal manner will enhance the corporate value of Fujitsu. And this is the management team to realize the growth. There is no change in the membership to achieve the target of a Medium-Term Management Plan and beyond under the leadership of President, CEO Tokita. The five Corporate Vice Presidents will lead and show the initiative. And these five members are the presenters for today. And the major gist of today's presentations and the roles and responsibilities are shown. So how to expand the business based upon consulting and the Uvance and Modernization and their growth strategy, technologies and strategy to support all these activities. And also, through the profit and the growth and the business efficiency, the cash generation and the optimal allocation of capital. So these are the points to be explained by the Corporate Vice Presidents. So much for my opening remarks, and now we would like to introduce the first speaker to talk about the first driver for business expansion and based upon consulting. Onishi, over to you. Thank you very much. Now, we would like to start the presentation on business expansion driven by consulting. Over to you, Mr. Onishi. Hello everyone. I am Onishi, Corporate Vice President and CRO. Thank you very much for having me. In my part, following a service presentation, I would like to explain how Fujitsu, especially in the domestic market, is on the strong growth track. And also, to further scale up the growth, that there are various opportunities, and by improving the consulting capability of Fujitsu as a whole, how we hope to accelerate the growth is something I would like to cover in my presentation. I became the first CRO in 2023. I don't know how much longer I will stay here, but I have been focusing on six agendas so far. We touched on this a little bit. Pricing strategy is part of this. In spring, we published a book putting together what we have achieved in the past six years, the six agendas, how we have been working on these. Of course, there are not always successes, but I would like you to refer to that book for your reference. So what I have focused on was not always just to sell, but to maximize the value proposition to our customers, which means clarify the portfolio and offer tactics based on scientific data to the team with consulting capabilities and people skills to maximize the value to our customers, and as a result, deliver the maximum profit, which means that technology delivery service, we have to make sure that there is a consistency with those strategies. Now, first of all, I would like to explain how we have realized the strong growth and how we expect to continue such growth. I would like to talk about the Japanese market, which is the majority of our business. As was shown on Isobe's slide, the domestic IT market in Japan, the growth rate between 2023 and 2028 is set to be 6.5%. If we overlay our growth in order intake for whole Fujitsu, 10.2%. If you look at it by sector, Financial, Manufacturing, Automotive, Public, and Defense sector, in those sectors, between 2022 and 2024, we have been significantly outperforming the market. This year, we have concerns about the impact of Trump's tariffs, and with Fujitsu, in automotive manufacturing companies as well as some of the manufacturing customers have been impacted. Our client base in diversified sectors, and also those sectors who are impacted, there are different levels of impact. Considering all of these factors, we will be able to offset the impact of Trump tariffs. What has supported the growth is, I am repeating myself once again, but the business portfolio transformation we have been working on as a whole, which is modernization. The DX market growth rate in Japan is 17.1%, but these two businesses significantly outperform the market growth, and if you look at each segment, we have been able to deliver good results in terms of Modernization, 64%, in Uvance, 55%, so we have been able to deliver big results, so going forward, modernization peak is going to continue and Uvance, and based on the scenario, Uvance is something that would follow Modernization, realization of DX and so on, so therefore, we have a very strong growth trajectory. This is something I believe as CRO of the company. One point I would like to add to that. The CRO mission is not only focusing on solutions. Product and Network business is something that I need to look at. So, new network service and strategic partnership with Arrcus, which was announced last week on Friday. We are working on collaboration with the team. So we would like to achieve big growth in a comprehensive manner as a group. Now, what are new business opportunities? Is there room to grow further? So from here, I would like to talk about the initiatives on how we can scale up the growth, which I believe is enhancing the consulting capability of the company as a whole and the key would be Wayfinders. So if you look at CRM data, there are some interest points that we'll be able to identify. We are focusing two. First is new opportunities, whether it's existing client or new logo, new area, business area, or new proposals where we are requested to provide such proposals, what is the average size of deal? By which I mean deal size. I think there is a room to increase our deal size. On average, with existing focus customers around 500,000, a little short of 500,000 in terms of overseas customers, almost the same level. However, if it's a new customer, it will be even lower than that. So if we take an average, it will be around 500,000. However, the ratio of deals less than 10 million. It is actually over 30% in some cases. Another point is conversion rate. In pipeline management, we register a project in stage two, as we call it, and they're finalized in stage seven. And when we look at it in an accumulated basis, we would like to increase the conversion rate. Existing customers, contract renewals, the conversion rate is over 60%, but even with existing customers, with the new business-like customers, our conversion rate is only 40%. New logos, new customers. Conversion rate is 20% in Japan and less than 10% in overseas. Therefore, conversion rate. If we take out this number from 100, are we losing in all of the opportunities? But that is not the case. The loss rate is actually in the background with existing customers, which is around 10%, and with the new logos, between 15% and 20%. What we need to focus on more is from stage two to stage seven. There are cases where customers would decide to withdraw or where the project is terminated, or we lose the opportunity to offer proposals, for example, due to lack of resources, which accounts for about 30%. Losing and winning is one thing, but we have to make sure that we'll be able to increase the motivation for the customers to transform. As a result, we'll be able to increase the conversion rate. In Japan, retention rate in Japan means that we have high share as Fujitsu, but from a customer portfolio perspective, we need to increase the wallet share of existing customers and also to increase the number of new logos, which matches our strategies, which would result in further growth opportunities. Japanese companies are right now going through a reform, comprehensive and composite reform. For companies who are struggling with legacy assets, huge legacy assets, they need to start from modernization, but they need to be able to come up with a vision beyond that, for which we can provide Uvance. We have to make sure that this pathway is convincing for the companies and to maintain the motivation for transformation. We have to make sure that there is a storyteller, and they need a change agent who will be responsible for the change, which role can be played by consultants. Further growth opportunity to be delivered. There are three points that we need to focus on. First point is to build a relationship with a key person for management transformation, and the second is to be able to navigate transformation as a story, which means that we need to make sure that we maintain the motivation of the customers on transformation. And the third point, I believe this is a very big point, we have to make sure that we have solutions or options backed by technologies so that we can make proposals to the customers. So we have had various discussions on the theme of consulting, but the final objective is to be able to play the role as a company as a whole and enhance the consulting capability as a whole company. And the key to that is Wayfinders, I need just to say. And this slide shows the update of Wayfinders, which is the core. Some of these contents include what we announced in the press conference, which was held in June, as shown on the left-hand side, Japan, U.S., E.U., and Oceania. We have highly experienced members joining us who have served as partners in global firms. So we have started the operations globally. On the right-hand side shows the areas that we would like to focus on. It's not fully aligned with our headcount, but what we would like to focus on is the knowledge rooted in each business domain, data and AI, with which we will be able to solve issues based on technology. So we did say that our strategy to start by gathering captains, and we are now increasing the depth of Wayfinders, and we are providing training and OJT to increase the capability in the sales and delivery departments, which is now ongoing. How are we going to change the project programs and the outputs of the customers? From the perspective of approaches to programs and projects, we need to become partners of key persons who are leading the corporate transformation and business transformation, which are mainly executive officers, through which we'll be able to be involved in various programs a nd Fujitsu has been implementing business transformation and different projects in parallel. There is a need to implement such transformation scenarios in parallel, and we also need to navigate, and we will be adding technology so we can scale up. On the right-hand side shows our approach for business transformation. In June, we talked about Agentic Business Foundation. So a business foundation, which is output of transformation, uses AI. AI Agentic Foundation is not business as usual. Business processes need to be aligned with the use of AI. IT architecture, the same thing. Human transaction-based system structure needs to be changed, and IT architecture needs to be established so that agents can be utilized. So for example, cyber attacks are done by AI. Human capability is not sufficient. In all domains, AI needs to monitor. Such kind of business foundation needs to be established. And that can only be realized when business and technologies are vertically integrated. The consultants who have such knowledge are the only ones who are able to provide such proposals. In terms of consulting approach, for example, AI should be used as buddies to do researches and create outputs, but in addition to that, analyze challenges to organize the consequences and to come up with prescriptions is something that's often used as an approach by consultants. By utilizing Fujitsu AI strategy and utilizing our technology, we'll be able to provide data-driven, realistic outputs that can be provided utilizing AI, which will be incorporated. I would like to share with you two examples. The one on the left is a case of new logo, a U.S. automotive manufacturer. We started off with a deal of Palantir, but it ended up being even more than that. We started off with extracting challenges of SEM, and we started proposing concepts, and we ended up providing proposals on work application, and the deal size was about 2.5 times bigger than the usual deal, and the second is a case of a Japanese major manufacturing equipment manufacturer. In the past, this customer was a good customer of Fujitsu of Mainframe. But over time, our relationship became weaker, and it was taken by a competitor, and we were only working with them in IT and Infrastructure services, and with this customer, we established a relationship between the top managements of the two companies, and we started off by creating a scenario and transformation on production, procurement, and logistics, and we were able to participate in the program to realize that. This program is ongoing, but this program is not only implemented in Japan, but also in the U.S. and Asia. Initial stage was a deal size was increased to twofold, and we have seen a number of cases where our gross margin is over 60%. As you can see, consulting capability enhancement focusing on Wayfinders will be pushing the growth of Fujitsu conversion rate, and also deal size expansion is something that we would like to achieve. For example, conversion rate, even with existing customers in Japan, we would like to achieve 50%, and with new logos, 40% is the ultimate target. Same thing for deal size, and behind this, we have been working to enhance the consulting capability of Fujitsu as a whole. As I have written in the book, the global account leaders, global account directors, and AGM, they are the people who are working in the front line of sales. They themselves have certification of Wayfinders, and they are educated by Wayfinders. In Delivery departments, SAP service providing leaders are given consulting-related education as well. They are not working to provide paid consulting services in consulting projects, but including wayfinders by increasing the number of skilled people, we'll be able to increase the conversion rate and also be able to increase the deal size. Having 500-1,000 consultants, if we're able to increase the number to 5,000, we will not be able to achieve a significant growth of Fujitsu. This is my final slide. To put it in one word, consulting main dish is Uvance or Modernization. For consulting services, it's actually a spice or a catalyst, I would say. Enhancement of consulting capabilities would not just promote the business portfolio, but it has a role of driving the growth of the company as a whole. The peak of Modernization is about to come, and according to the scenario, Uvance would follow, and new technologies would come out as well. And we would like to make best use of the growth driver to achieve big results. With this, I would like to conclude my presentation. Thank you very much for your kind attention. Thank you. Thank you very much, Ms. Onishi. Now, for the growth of Uvance, Mr. Takahashi Yoshinami, Corporate Executive Officer, will speak on this topic. Good afternoon. Hello. My name is Takahashi, as was introduced. So I would like to talk about the progress of Uvance's business as well as the outlook for the future. For fiscal 2024, this is the review of fiscal 2024. Talking about the fiscal 2024, the revenue overall, Uvance revenue was JPY 482.8 billion, 31% higher than the previous year, which outperformed the target of JPY 450 billion. The major driver here is the SAP- ServiceNow, Salesforce, in other words, Horizontal. We were able to capture the demand for them and also data-driven business, and the intelligence and the demonstration is where we see an increase in the demand. On the Horizontal, the business and the Uvance grew, and the Vertical also grew at a rate of 51%, even though the size is not as big as the Horizontal. JPY 700 billion is a target we would like to achieve, 45% higher than the previous year, particularly 60% increase for Vertical and 37% increase in the Horizontal. These are the major challenges we'd like to take up. But the current for the Q1, I'd like to explain about the Q1 results. Against this overwhelmingly large number, how are we performing in the Q1? That is what I'd like to explain. First of all, vertical and horizontal, for both of them, the growth rate is higher year-on-year. So they are growing steadily, as you see here. As for the total numbers, the growth rate in the Q1, against the target of 45%, actually, it was 52%, so 7% higher than the plan, particularly for Vertical, 60%-69%, Horizontal, 37%-44%. So this is an important point. Actual results, and also including the order backlog, already now the Q1 is over, and that accounts for 60% of the annual planned volume of the business. It used to be 53% in the previous fiscal year. So in that sense, we are higher by 7%. And on the right-hand side, you see recurring revenue. Last year, the same time last year, it was 32%, but it went up to 44%. Recurring revenue, why is it important? Because this is a stock-type business, so stable. In order to achieve the stable revenue and profit, we should continuously invest so that we can continue providing value to the customers. So in that sense, recurring revenue is important. And also standardization ratio, currently 63%, as you see at the right bottom. And this is what we achieved in the vertical domain. So the one-to-one business, one-time, is not what this means. Standardized offering is to be provided because we can offer this to multiple customers. This improves time to market and also to capture the scalability of the business. Standardization is what we are focusing upon in Uvance as well. Next point is, so we are on the solid path for the future growth, and I'd like to talk about the future opportunities, so the organic value creation between Vertical and Horizontal is what I'd like to explain. For Horizontal, Vertical application, and it is supported by Horizontal. It is a base. 3S, SAP Premium Supplier, for example, by utilizing that, SAP ERP data is to be used on the ontology, connecting them and analyzing them to get the output, so from horizontal to vertical application deployment is possible. For business application, the strategic partners with multiple partners is what we formulated, so by using the horizontal framework, we can connect at the Vertical, and digital shift for DX, data path is provided. Fujitsu's IP, Kozuchi, Takane, can be provided on path so that the customers can freely utilize the technologies. So this is the nature of the service we provide. By using them, customers will be able to use technologies as their parts, and also by the Vertical products. It is increasing. So from Horizontal to Vertical, the coordination between these two is important. Now, I would like to talk a little bit about the Verticals business. Vertical, as you see here, it is growing steadily, as you see, particularly in CX. GK Software, we acquired last year, its growth is 33% year-on-year and also to new customers, we have captured the new customers as well. So standalone performance, as well as the Fujitsu IP integrated, will capture new customers. As for trusted society, ICT security is the area domain where our image analysis engine can be fully utilized to generate new needs, and also the logistics and the optimization. The logistics and the optimization engine can be fully utilized so that the customers can enjoy the value. As for healthcare, electronic and the medical record on the cloud, and also the turning the knowledge into the IP, and also the providers and the business transformation, these are what we are working on. These are the projects emerging. For Verticals business, they are growing quite steadily. As for Uvance solutions, as you know, on-cloud application is the main underlying offerings. To facilitate the expansion of the function and to enhance the value, and also one to multiple parties, time to market can be improved. It is not the one-on-one relationship, but the basic architecture is to be deployed to cover multiple customers in a quick manner so that we'll be able to offer new functions to the multiple customers in a quick manner. Now, I will talk about GK and its growth driver. As I mentioned earlier, 33% on the standalone growth of GK year-on-year is what I mentioned. Starting from May this year, we have completed 100% integration. The utilization of IP will be starting soon, but already in 2024, through Fujitsu collaboration, GK has captured a new customer base. On the left-hand side, the global apparel brand is one case study. In addition to GK POS, Fujitsu's managed service is provided. Our security and other functions are to be purchased by the customers so that the full values will be enjoyed by the customer. In the middle, this is a case study of Canadian food retailer Metro. Our image analysis and the fraud detection function will be introduced together with GK's capabilities, so cross-sale is possible. On the right-hand side, European company Popken Fashion Group is another example. For GK, the most leading-edge POS and price optimization is another function. Real-time price optimization is introduced to enhance the retention. So now, these solutions, it is time that we can introduce these functions to Japanese customers as well, and multiple customers have shown interest and placed inquiry to us, so by using GK's function, Fujitsu IP is to be integrated to offer higher value so that in the global market, we will be able to make inroad into the global market as well. Next topic is a little conceptual, but by enhancing the scope of Uvance by utilizing our comprehensive capabilities, now we have verified this. So we can identify opportunities which can be connected to Uvance. And the Modernization, it is not just the TCO lifting, but the full shift, the Vertical applications are to be utilized so that the DX will be promoted. So this is the entry point. And the Modernization is the entry point, and connecting this to Uvance is one way. And also various area technologies, various technologies seed. From the research institute, we get them and embed them into solutions. Takane, AI-related Agentic AI guardrails. These are major technologies that are to be incorporated into Uvance to enhance the added value. So that's what is happening. For the entire company, we are working together so that we will be able to deploy Uvance to as many customers as possible. Next, I would like to talk about Agentic AI. at the Uvance update the other day, we already explained this, but this is the AI agents and they are specific to business applications, and international organizations and research analysts have rated it highly. Fujitsu is a top-tier provider Agentic AI. so we are a top-tier provider Agentic AI. that is what they recognized. What is important about this is that the market is moving towards AI, based upon business and the know-how and expertise, we will be able to work on Agentic AI, not only on business and experience, but the integration of sovereign technology to evade fraudulent utilization. So the guardrail is to be introduced so that the safer utilization of the agent will be possible. In In the field of business expertise, based upon our business expertise, this is the specified AI and the technology with the guardrailing function is to be incorporated. And within the company enterprise, well, not just the AI utilization within the company, but among or between the companies, AI is to be utilized. 3S, SAP, ServiceNow, well, working together with our partners. Agent-to-agent collaboration or the coordination is something that we would like to look into. Next, I'd like to give you some of the specific examples. This is the example. Last year, I already indicated this use, but this is the utilization of AI agent for disaster response, large-sized earthquake, and other disasters. We will be able to focus the potential damage at the customer's sites and integrate such information to the procurement data and visualize the vulnerability of the entire supply chain. Not just visualization, but actionability, how to evade such potential risks. That is what we are also offering. The parts are to be supplied by some other suppliers potentially in order to evade the impact of such a disaster. That is what we can Agentic AI is actually being used for this purpose. This is the most leading-edge example of the customers utilizing this function. The seamless connection Agentic AI and get the information, visualize them, and make output. This is one example. As for the next example, this is on the healthcare case I'd like to introduce to you. Annual medical expense is said to be JPY 47 trillion in Japan annually, and 1/2 of that expenses are personal expenses. And the P&L for the hospitals and the medical institutions, actually nearly 70% of the hospitals are suffering from the fiscal deficit losses. So unless the business process is improved and turned around, the medical institutions of Japan will face difficulty. And so recently, we made an announcement of our work with NVIDIA. So it is shown here. So whether it is the medical examinations, the diagnosis, and the prescriptions. So aside from these core medical activities, all the other hospital operation-related processes are to be turned into AI. So to multiple hospitals, we would like to introduce specific proposals like this. Not only this, but the telemedicine at the remote islands, for example, for the medical care and transformation is what we'd like to offer. Lastly, I'd like to talk about the future outlook. First of all, by the penetration of AI agent, a new market of services and software is expected to emerge. So from fiscal 2025 to 2035 for a 10-year period, JPY 300 trillion will be the size of such market emerging right now. So the high-level services which were carried out by the human beings are to be offered by AI through automation and software. So this is a new model. Software as a service, which is traditional, the services to be used by operators. Of course, that part of the market will remain, but that will become smaller, and the AI doing the implementation to create the output. That is expected to emerge. And the conventional IT services, the labor-intensive services, are to be replaced Agentic AI. that's what is said generally. So to Agentic AI, based upon our technologies and working together with our partners, we would like to accomplish the perfection of this approach. So to create the market and become the leader by fully utilizing AI to create the Uvance Solution. That's what we aspire to do. And ultimately, our target is a service solution. The Uvance shall account for 50% of a Service Solution, and therefore, growth emerging Vertical 50%, Horizontal 40%. That's what we try to achieve. And another important point is recurring ratio. Currently, it is around 40%. By raising this to 70%, stable revenue and profitability are to be secured. And by working on this cycle in an effective way, we will be able to enhance the value that we can offer to the customers. So these and the recurring nature of this business shall be maintained in Uvance. Lastly, going forward, we would like to continue introducing innovation and leading-edge technologies in order to solve the societal and technological issues. So, the AI, how to offer AI, as well as quantum computing, these are leading-edge technologies. By offering them, utilizing them, we would like to achieve the sustainable evolution of industry, society, and the planet Earth. The people progress, AI progress together so that we will be able to create the new world, a new society. Thank you very much. So much for my part. Thank you. Now, the next presentation, the expansion and the modernization. Our presenter is Ms. Shimazu. Ms. Shimazu, over to you, please. I am Shimazu, COO of Fujitsu in charge of Service Delivery. I would like to thank our shareholders and investors for your continued support to Fujitsu. I will talk about expansion and modernization, further delivery transformation. I joined Fujitsu in 1987 as a system engineer, and I've been working and serving customers in the field for a long period of time. I continue to be responsible for service delivery in this fiscal year. First, I would like to talk about our business progress toward achieving the current midterm plan. I would like to take a little time to talk about the definition of modernization. There are different definitions for modernization: simple upgrading of infrastructure or infrastructure migration. But Fujitsu defines modernization as moving away from legacy assets. The market surrounding modernization, since Fujitsu's full-fledged rollout of the business, has grown in size to over JPY 1 trillion, with new players coming into the market. Furthermore, many companies started active use of generative AI, and their legacy systems are the bottlenecks for AI use and to achieve data-driven businesses. To overcome this challenge, customers are accelerating their initiatives on modernization. Fujitsu announced its termination of legacy platform in 2022, and the entire company is promoting Modernization business. The Consulting business that Onishi talked about and Uvance that Takahashi talked about will be linked with modernization to approach the market, and our proprietary generative AI that Mahajan will explain after this is implemented to Modernization to improve productivity and competitiveness. I would now like to talk about the performance in FY 2024. In FY 2024, our revenue was an increase of 86% against the previous year. Our gross margin was 38%, achieving our initial target. We are leading the legacy modernization market in Japan, and our market share increased from 22% in FY23 to 26% in FY 2024. Furthermore, we are also making steady progress in terminating our legacy platform, and now, here is the plan for FY 2025. We are expecting another strong year with revenue targets of JPY 330 billion and gross margin targets of 2% increase from the previous year to 40%. As of today, the pipeline building is progressing above our target, with a high probability of achieving the target. We will increase our share in Japan for Legacy Modernization, and we will be maintaining the number one presence in the market. We also plan to continue to work to terminate the legacy platform. Now, I would like to talk about initiatives for further growth. Fujitsu's source of competitive advantages consists of services, engineers, and knowledge, three elements, as was explained at last year's IR day. In FY 2025, with these elements in the center, our plan is to further increase value and expand the market. In increasing our value, we'll be linking with the Consulting business, strengthen engineers, and use generative AI, which are our focus themes. We'll be leveraging the source of competitive advantage that we developed with our legacy modernization as a weapon to expand to non-Fujitsu legacy and open markets to capture new growth opportunities. After this, I would like to explain each theme. First, linking with consulting to approach customers. To promote modernization, customers' IT team is struggling to work on the following with management and business perspectives, such as to create stories to convince the management, defining value in investing in modernization, also optimal modernization planning, targeting data, and AI. At Fujitsu, together with a consulting team, we established a methodology called Modernization Action Planning. Our SEs, who know well about our customers' IT, are joined by Fujitsu Consulting to offer proposals of a grand design that brings in management perspective, where IT challenges are enhanced by business challenges. This enables acceleration of decision-making on the execution of modernization, which tends to be pushed back, and promotes modernization to evolve as a management project with an objective of DX. Secondly, we are working to strengthen engineers to increase value. To avoid declining of business opportunities because of the shortage of assignment of staff needed for modernization projects, we are making monthly forecasts on the number of engineers needed in a short term to midterm based on information on opportunities. Engineers needed assigned with a group-wide approach internally and including partners. Furthermore, with productivity improvement utilizing GenAI, we are trying to minimize the number of engineers needed. The third point to increase value is application of GenAI to modernization. As shown on the right-hand side, we are using generative AI technology in all of our businesses, which is also true for modernization. The challenges of legacy systems include systems becoming black box or legacy systems becoming the bottlenecks for the data-driven approach and a longer time needed for projects. We at Fujitsu have our own proprietary generative AI technology, Fujitsu Kozuchi, and together with the practical knowledge we have gained in business negotiations, we are offering new values such as more efficient and higher quality modernization projects. I would like to explain the generative AI application cases that only Fujitsu was capable of. First, the technology to automatically generate design documents that are easy for humans to understand from a program. This is a payroll calculation program, but in a general autogeneration, the design documents include fixed length input files that are hard to understand for humans. On the other hand, when using the knowledge graph, outputs are shown as employee number, base salary, and job type in plain Japanese, which are easily understood by humans. With this technology, even with a system without the design document, modernization projects can be appropriately executed. This technology enables us to work in non-Fujitsu markets where we have no knowledge on the operation. The second technology is quite effective in modernizing. In the past, when we are to do modernization, we are to use tools. After converting to a Java program, we remove redundancy and complexity, and this process was done manually. But on the other hand, by utilizing Fujitsu proprietary technology, from the design document that I talked about using the previous slide, the challenges are extracted by AI and automatically generate program source. And with that, in a short period of time, the execution time can be shortened. And using this slide, I would like to talk about how Fujitsu is using generative AI in the whole delivery business and not only in modernization. Already in delivery, we are utilizing generative AI, and we are trying to improve efficiency by 20%-50% for each project. In mid to long term, the current waterfall development will change significantly. We will come up with a new business model assuming the use of generative AI and will be leading the industry in transforming the delivery model. Currently, Fujitsu's Legacy Modernization domain is JPY 130 billion, which is expected to peak out in FY 2029. However, with initiatives to increase value, which I just explained, and by rolling out the knowledge we will gain with Fujitsu's legacy to non-Fujitsu and to the open markets, we will further increase our share. Lastly, let me explain our future outlook. Going forward, we will pursue both market share increase and profitability improvement. With the enhancement of the source of competitive advantage and expansion to non-Fujitsu legacy and open market, our target is to achieve modernization market share of 30% in Japan, and the market growth is 20%, and we would like to outperform the market and grow by 30%. On the other hand, to improve profitability, we will be utilizing generative AI and roll out our practical knowledge that we have gained to increase gross margin by 10%-50% in mid- to long-term. We started our modernization business in full scale since the announcement to end the legacy platform business in 2022, and the modernization business will continue to grow and drive our next business stage. Fujitsu modernization is regarded as a starting point of innovation that will continue to transform and create the future with our customers. This concludes my presentation on modernization business. With a short presentation, there may have been points that were not fully explained, but I sincerely hope this presentation has helped you understand better about the business. Thank you very much for your continued support. Thank you very much for listening. Thank you very much. Now, let us move on to the next part, which is about the technology strategy to support business growth, and the speaker is Vivek Mahajan. Now, CTO, Mr. Vivek Mahajan, over to you. Hello, ladies and gentlemen. My name is Mahajan, CTO of Fujitsu Limited. I would like to talk about the technology strategy to support business growth. Since 2021, I have served as a CTO of the company, and what was important to me. There are two things that I regard important. Now, we are talking about AI, but since 2020, we have already introduced and implemented a strategy focusing upon AI, computing network security, converging network related to AI. We have been working on that continuously since then. The second point, which was important to us, is made-in-Japan technology. So by using Made-in-Japan technology, we would like to help customers' growth, customers' profit, and also Fujitsu's growth shall also be supported by our technologies. Made-in-Japan technologies, naturally, it is to be used in Japan, naturally, but it is something that we equal attention on the global stage as well. I will touch upon this point later. From Onishi-san, Yoshinami-san, and Shimazu-san, they already explained that the Consulting, U.S, and Modernization. So Fujitsu technology supports all these activities. Fujitsu technologies. We have five key technologies. We have been explaining about five key technologies: Fujitsu Kozuchi, converging technologies, security. So combining them, these are Fujitsu AI, and what supports them is computing. Why are we working on computing? It is to support AI and plus network. Last Friday, we talked about the Arrcus. We are working together with Arrcus. Next network will be created based upon AI. That's what we have been doing. So these are the technological areas that are important to us. I do not go over everything, but the AI and computing strategy, these are points I'd like to explain today. First of all, AI total picture. So why are we handling AI? Why Fujitsu is working on AI? Three corporate vice presidents have already explained about how we can offer services to the customers. Our customers, important customers, are enterprise customers, and what they value is data. Talking about data, naturally, the data on OpenAI is one data, but there are others. Customers and the specific work specified data is another aspect. And also, security is quite important to the customers as well. Next, third point is customers. Their customers' work shall be considered in AI or the type of AI that makes customers' business easier. So they are enterprise customers, and that's what they want a nd Sovereign AI. Sovereign AI platform, if it is what they want, Fujitsu can offer important value. Well, the financial services, administration, defense, medical services, and manufacturing. Sovereign AI is what customers value in these areas. And Fujitsu Kozuchi is what was touched upon by the previous speakers. But the enterprise AI framework, generative AI framework, and the reconstruction, once the qubit, even with one quantum bit, we were able to generate this framework. Why is this important? Enterprise and in the private domain, we were able to achieve a high level of performance. And also, zero hallucination is what we'd like to realize. And also, we have Takane and GenAI technology together with Cohere since last year. It is expanding. From our customers, many customers are there, but for example, Panasonic, they are using our technology. And also, Takane is also used by the agricultural customers. And also, Toyota and related companies using our knowledge graph and they are creating their own systems. So on the global, these are the global customers as well. So the area of enterprise and sovereign AI, that is what we would like to offer. And this is our roadmap. Suddenly, every year, AI milestones are defined for each year. For AI Kozuchi, first of all, we have Takane. Takane is an extension of GenAI, which is specific to customers' business. And the second Agentic AI, and it will progress going forward. As Yoshinami-san mentioned, AI agents are being utilized and will be utilized in various industry segments. And AI to AI conversation and exchanging information between AI, that is what we would like to enhance higher value. And what supports that is security, knowledge graph, LLM scanner, guardrail, hallucination. These are where we would like to focus upon. One more point, which will be important, is physical AI or device and AI combined to be used for robots. This is where I would like to make progress to create the world model to be used at the customers' factories or the stores. In a device, we would like to introduce our technologies to make this possible for the future progress. Suddenly, we have already worked on this roadmap, and we are significantly progressing every year. That's what we'd like to take up as a challenge. What supports AI computing? I'd like to explain about our computing. Computing and processor technologies is what we have been worked on for many years because to support AI industry, it is computing. NVIDIA, AMD, as you know, naturally, they are supporting AI enhancement. Here in Japan, we need to support FUJITSU-MONAKA. To support AI, we have FUJITSU-MONAKA. Value here, as I mentioned, computation computing and the power consumption is very good in this processor. This is a leading-edge technology, and the CPU, GPU combined to maximize the performance. That's what we try to do. Processor will come out at the 2-nanometer chip for the first time in the world next year. It will be available. It is totally different from the situation five years ago. The market is expanding, and NVIDIA and ARM technology to be used for their application, and AWS, the Graviton. These are the cases, and we are working on FUJITSU-MONAKA. FUJITSU-MONAKA, how is it progressing? Is it growing? In Japan, naturally, and also globally, from important partners globally, they are paying attention. Supermicro, they are creating SuperS erver. The Supermicro CEO is working closely with us to create server based upon FUJITSU-MONAKA. The AMD and their GPU and our CPU combined to work on the AI. NVIDIA as well. Jensen in Taiwan, back in April, May, he talked about the processor, and he mentioned about the FUJITSU-MONAKA. Last month, on the 22nd of August, we came and NVIDIA and the Ian Buck. I myself, three of us, mentioned about the CPU to support with NVIDIA's GPU, and they try to aspire in the HPC industry. Naturally, in Japan, but also in the global stage, the global AI-related partners are approaching to us. This is the roadmap of MONAKA and the exit point of MONAKA. Just like Sovereign AI, Sovereign infrastructure is important. Confidential computing, high security infrastructure are important to the customers. They are going to treat them highly. Data center business, confidential computing, is important to the defense and the administration, the financial services, life science, and they are expected to be large targets of MONAKA. Last month, Fugaku NEXT was announced, as I mentioned on that occasion, 2-nanobit, and also the 4.7-nm and GPU collaboration will be important. What we would like to do is the reasoning and inference. These are where we would like to focus upon. Every two years, the next processor of MONAKA will be launched. What supports computing is our quantum technology, Fujitsu's quantum technology. When it comes to quantum, Digital Annealer, quantum simulator, and quantum computing, we have looked into that. At the end of July, well, we announced the roadmap of quantum technology, well, 10,000 qubits, 250 logical qubits by 2030. That's what we talked about. This is the world-leading roadmap, which is a challenging roadmap, but these are what we aspire to do. Why? As is written at the bottom, we have a large market, and we'd like to play in the large market. The process simulation, the medical care, and the manufacturing, there is a high expectation to the quantum computing on a global scale. The joint research is done. For example, the Fujifilm, Tokyo Electron, and the CESGA, which is using our technology and ASIC together with them. We are using the technologies, and we'd like to make steady progress in our work with them as well. This is the roadmap of quantum computing. Naturally, we will fully utilize quantum in Japan, but it is not sufficient if we only stick to the Japanese market. We'd like to do this on a global scale. As you know, Google, IBM, AWS, so these companies are focusing upon quantum computing, quantum technology. By 2030, 10,000 physical bits and 256 logical bits, and 1,000 logical bits is what we'd like to achieve, and the error correction and the application as well, and also HPC and quantum combined so that the customers will be able to use such technologies immediately to their operations. In HPC and quantum, we have both of these areas of technologies, so we hope to work on this roadmap swiftly. The STAR architecture and diamond spin technologies are our uniqueness, and the high superconducting, the quantum, the capability shall also be connected. Quantum and AI to be combined, and looking for 2035, I'd like to share with you some of the images towards 2035. Fujitsu has the quantum technology network and computing. We have three of these technologies. This is quite rare that one company has all of these three technologies. Some companies may have two of them, but we have three. Thinking about the robotics world and the future deployment of robotics, well, having these three technologies together is important in that regard. Fujitsu and our focus is the brain of the robot, sensory perception, and security. In these areas, this is where we'd like to pay close attention to because the AI computing network, we have three of them, and with them, we'd like to support the growth of our customers. Thank you very much so much for my presentation. Thank you. Lastly, I would like to ask Mr. Isobe to present strengthening cash generation capacity and optimizing capital allocation. Thank you very much for being very patient. It's been over an hour, and you've been listening to different presentations. We are a little behind our schedule. However, I would like to start the final presentation. In each part, numbers, performance, growth rate that are often explained, the actual initiatives and strategies to achieve those targets were partially explained. I hope that you were able to get the feel at least of what we are doing. I would like to start my final session. In this session, I would like to try to explain how things that were explained today are feeding to the overall financial plan. I would like to explain the likelihood of achieving the medium-term management plan, enhancement of cash generation capacity by the medium- to long-term profit growth beyond the plan, and the direction for sustainable growth with optimal capital allocation. This slide shows. I don't think I need to explain this anymore, but I've already explained this slide in the first part. Four officers just explained the details of this content. In the center, we have the advanced modernization, which are accelerated by consulting to solve the challenges of the customers and the societal challenges, and which supports the growth of the company and accelerated by AI and computing, the evolution of technology. This is a profit plan in our Mid-Term Management Plan, which I explained in the first part. What is driving the revenue and the profit is the Service Solutions and the four growth drivers that are key to the growth of Service Solutions, which were explained today. Overall, things are moving steadily to achieve the plan. According to my understanding, there are various changes in the business environment, but we have been responding flexibly to those changes, and we have been shifting to high-value-added services. The structural reform of the business is on track. Cash generation capacity is also strengthening. As shown on the graph on your right, the base cash flow, which is the source for capital allocation, was about JPY 650 billion in the three years during the previous midterm plan, but in the current midterm, we are expecting JPY 1.3 trillion growth by twofold. We are expecting profit growth with Service Solutions business in the center, and adjusted operating income in the previous three years was JPY 660 billion, but in the current three years, we are expecting to achieve JPY 930 billion, and second is improvement of business efficiency by shifting to the service business. Investment returns and capital circulation have become more efficient. Thirdly, asset recycling by carving out non-core assets. With all of these initiatives, during the previous midterm, cash generated was about JPY 650 billion in three years. Average of over JPY 200 million a year is increasing to about JPY 1 trillion in three years after taking out the income from the sale of non-core businesses, which is an increased cash generation capacity of over JPY 300 billion a year, although there are some ups and downs. Cash generation capacity is steadily increasing, and cash allocation is also on track. The base cash flow of about JPY 1.3 trillion to be generated during the current midterm will be JPY 700 billion allocated to business growth and JPY 600 billion to shareholder returns. The plan remains unchanged. Enhance cash generation capacity and optimally allocate the generated cash to business growth, investment, and shareholder returns. By running this cycle, we will further increase the cash flow and achieve sustainable growth of corporate value. The progress of the current midterm plan has been explained so far. Revenue, profit plan, generation of cash flow, and capital allocation. Everything is in line with the plan and on track. The current midterm is approaching the final corner, but we will stay focused and make sure we achieve our targets. Lastly, I would like to talk about the direction and the perspective for the post-midterm plan period. In the previous sessions, we had corporate executive officers explain mid- to long-term revenue growth and margin improvement strategies and targets for each growth driver for sustainable profit growth. Key quantitative targets are once again shown here on the slide. Consulting will accelerate the growth of advanced modernization business by improving the conversion rate and increasing the deal size, and improve gross margin and profitability by increasing recurring business. Modernization will increase the market share by attacking non-Fujitsu systems and open markets, and through the use of generative AI and by rolling out the practical knowledge. Gross margin will improve. All of these business growth will be supported by technologies. Especially enhancement of one of the five focus technologies, AI and computing, will enable competitiveness and high profitability. We believe that these growth drivers will sustainably grow the revenue, profit, and gross margin of Service Solutions as shown on the graph on the right-hand side. We will achieve the midterm plan targets and also realize a higher profit business and strong growth beyond the current midterm plan. Now, about capital allocation, on the left-hand side shows the initiatives to enhance the cash flow generation capacity. As was explained earlier, the base cash flow during the previous midterm from 2020 was JPY 650 billion in three years, an average of over JPY 200 billion a year. During the current Mid-Term Plan, excluding the income from the sale of the non-core business like Shinko and Fujitsu General, base cash flow has increased to JPY 1 trillion in three years, an average of over JPY 300 billion a year. Going forward, through sustainable high profit growth, continuous business transformation, and improvement of business efficiency, we will accelerate the cruising speed of cash generation to achieve an average of over JPY 400 billion a year and over JPY 500 billion beyond that. We will carefully identify investment opportunities and be flexible in using leverage if that would result in the growth of business. On the right-hand side, we have a bar for the allocation, and there has been no major change in the approach. We will allocate appropriately the cash to investments for growth, for sustainable business growth, and shareholder returns considering capital efficiency. Our priority is investment in growth. We would like to be proactive in investing, focusing on further growth based on stable profit increase and strong financial base. Needless to say, execution and investment based on financial discipline and the pursuit and tracking of ROI are essential. On the other hand, we will expand the shareholder return base in the mid to long term, further increase in the dividend level, and consider flexible share buyback while executing investments for growth. The whole cycle of strengthening of cash generation capacity and optimal cash allocation will be carefully monitored to realize sustainable growth in corporate value. Here are the main financial KPIs where we are today and beyond the current midterm. First, the progress, and on the left is adjusted EPS. During the current Mid-Term Plan period, CAGR is double-digit as we had planned. On the right-hand side is the adjusted ROE. With the profit growth and better capital efficiency, we expect ROE to be about 14% in FY 2025. Beyond the current midterm, by executing the sustainable profitability increase strategy and optimally allocating the cash generated, we believe we can continue to improve the KPIs. Adjusted EPS to grow by double- digits, CAGR of 10%-15% to continue, and adjusted ROE to be over 20% are the likely levels for our target. By bringing positive impacts to the society, we will realize sustainable increase in corporate value. This is what we will always keep in our minds as we operate the business. Details of quantitative targets will be disclosed in the next Mid-Term Management Plan announcement. This is my final slide. Today, we had Onishi talk about Consulting business, Takahashi about advanced, Shimazu talked about modernization and delivery transformation, and Mahajan talked about technologies. We provided the updates and the future growth strategies for each. The progress of the business model and portfolio transformation that Fujitsu is working on, which are at the center of our path forward. Through these initiatives, we will increase the profit and cash generation capacity. We will allocate optimally the cash to discipline the execution of investment and further business growth and proactive shareholder returns. By running the cycle, we will realize sustainable increase in corporate value. In our previous midterm, we worked on portfolio transformation and improved profitability as shown at the bottom. During this Mid-Term Plan period, we have completed the work and delivered results and increased profit. Going forward, we have the skeleton in place with some muscles in place. We will accelerate the strong business growth. The growth drivers will continue to be consulting, advanced modernization, and technology. We will continue to refine the growth drivers and will work on the transformation in response to the changes in business environment. Fujitsu will be working towards the 2030 vision and the 100th anniversary in 10 years and beyond to realize sustainable improvement of corporate value. The future vision that we shared with you today will be explained with higher resolution when we announce our next midterm management plan. This concludes our presentation. Thank you very much for listening.