Good morning, everyone. If you'd like to listen to this session in English, please click the interpretation icon at the bottom of the screen, and select English channel. [Foreign language] Ladies and gentlemen, thank you for joining Renesas's Fiscal 24 Q3 earnings call. Simultaneous interpretation is available today. Please tap on the interpreter icon at the bottom of your screen and select the language of your choice. Speakers, please turn your videos on. We have with us today our Representative Executive Officer and CEO, Hidetoshi Shibata, and our Senior Vice President and CFO, Shuhei Shinkai. We also have some members of our staff here present. Mr. Shibata will welcome you, and after Mr. Shinkai, we'll explain about our Q3 results. This will be followed by a Q&A session. The earnings call will be about 60 minutes long. The materials that will be used today are available in our IR section on our website. So, Mr. Shibata, over to you. Please turn your mic on. Good morning, everyone. This is Shibata. I'm sure that some of you have already seen the numbers, but for third-quarter results, we thought we were stepping on the brakes before, but we needed to step on the brakes more. That's how we see the results. Revenue-wise, excluding FX impact, we were within our guidance range. However, for end demand, more than expected, it became weaker. Therefore, channel inventory-wise, more than expected, we saw an increase. So, in the Q4 of the year, we would like to reduce the inventory levels. So that's one thing we would like to take on. Inclusive of that, for Q4 guidance, we are expecting a significant decline in revenue, close to 20%, out of which a quarter is expected to be impacted by the stronger yen. So when you take that item out, the impact is about a revenue decline of 15%. So earlier, I talked about channel inventory and that we are going to reduce inventory. About a third of the 15% comes from that effort. So when you look at the mix, what reflects demand compared to the 20% significant number, it's about half that's attributed to end demand. I would say more or less around 10% of the revenue decline is the substantial guidance. Timing-wise, there was a slight shift, and Mr. Shinkai may refer to this later, and we can also take on your questions in Q&A. But when you look at our performance year over year, automotive still mid-single digit growth has been observed. So stepping on the brakes during the Q4 may have been a surprise for some of you. But before, I was saying that we had a lot to regret in the previous results, but this time around, it's more about taking a deep breath and engaging in measures in anticipation of the future. So from that perspective, automotive on an annual basis is still on a growth trajectory. So we would like to take on the long-term challenges and implement measures steadily. So now, without further ado, I would like to pass over to Mr. Shinkai, who will talk about the actual numbers. Then after, we would like to move on to Q&A, like we always do. Mr. Shinkai, please. Hello. I am Shinkai, the CFO. I'd like to talk about Q3 results. I'm going to be talking off the material that is on our IR site. Next page, please. And next page, please. Here's the disclaimer page. At the very bottom, please look at the bottom bullet. We concluded the acquisition of Altium as of August 1st, 2024, and it's been consolidated from August. So for Q3 results, Altium performance is included. Regarding segment allocation, it is mostly included under industrial infrastructure and IoT. For PPA, in the full year results, we expect to close, and we would like to retrospectively revise the actual impact. And next page talks about the results. Look at the dark blue column that shows Q3 results. So for revenue, we were at JPY 345.3 billion. Gross margins were 55.9%. Operating profit were JPY 98.4 billion, and operating profit margins were 28.5%. Net income was JPY 86 billion. EBITDA JPY 121.4 billion. And currency rates were 140.54 JPY to the USD and 168 JPY to the EUR. The comparison to last year's forecast. Please look at the row that is the third to the right. And looking at Q3 results, please look at the left column, excluding August and September Altium impact. Please look at the part that says Altium excluded, which is the fourth row. So compared to forecast by item, please look at the top right for revenue. Compared to forecast median, we were slightly below, but we were within the lower end of our range. Altium's consolidation, if it didn't exist, we would have been below the forecast range due to a stronger yen. In IIoT, especially, industrial and mass market contributed significantly negatively. And for automotive and mobile, it was slightly positive compared to expectations. And for gross margins, we were at 55.9% for the quarter, which was slightly above our median forecast. If we excluded Altium consolidation, it was at 54.9%, which was slightly below 55.5% of the forecast median. The reason is because due to less utilization, the production recovery decrease was the main factor. Because of cutting inventory during Q3, input and production was cut. Operating margin-wise, we were at 28.5%, and this was above our forecast median. The impact from Altium's consolidation was neutral. Compared to forecast, OPEX went down, and this was mainly due to cost control. So it was down on a net-net basis when you account for Altium impact. QoQ, looking at the bottom right, on revenue, QoQ, it went down by 3.8%. Altium and FX impact excluded, it was 5.5% more or less decline. For gross margins, QoQ, it went down by 0.9 points. Due to less production recovery, QoQ, it went down by 200 basis points. On the other hand, because of Altium consolidation, part of it was offset. For operating margins, QoQ, it went down by 2.3 points. Like mentioned earlier, we did cost control, but in Q3, because the transaction and Altium was consolidated, OPEX, the base went up. So as a result, operating margins QoQ went down by 2.3 points. Segment-wise, for automotive and IIoT, for automotive, gross margins, operating margins went down QoQ, and the utilization decline impact was substantial. For IIoT, for gross margins, Altium's consolidation impact was a positive. Apart from that, the rest the same as automotive. And for operating margins, on top of utilization declines, OPEX cuts and cost control was able to offset the negative coming from sales volume decline. Next page, please. So here are the quarterly trends of revenue. For Q3, the results are on the right-hand side. Overall, we saw revenue decline of 9%, and QoQ revenue declined by 3.8% by segment. It is as shown here. For FX, year on year, overall, the impact was about three percentage points, and it had the same impact by segment. QoQ, it was about less than 1% of an impact. For Altium consolidation, which I would like to comment on, for IIoT, it is recognized here, most of it, actually. Revenue-wise, year on year, it's three points' worth of contribution. Therefore, for IIoT year-on-year results, it says minus 24.3%, but when you exclude the FX impact and Altium impact, it was up close to minus 30% of a decline. Or it's actually a weak yen, not a strong yen, of an impact. Next page, please. Here we are looking at trends in financial indicators. Let us look at the cash flow, free cash flow. Please take a look. We have also exempted the outlays for Altium acquisition. The free cash flow is negative quarter on quarter. Q3 is negative. Periodical cash items, namely corporate tax payment and interim bonus payment, have taken place. There have also been one-time items, which include the foundry prepayment for capacity build-up. This has contributed to the decline in numbers. In Q4, we returned basically to normal, and then going on to the next page, and to the left-hand side, we have the inventory, sales channel inventory and to the right, the change factors. Now, let us look at the in-house inventory DOI. As earlier mentioned in the Q3 results, during Q3, production adjustments took place. Input reduction also has taken place, resulting in lower utilization rate, and due to higher end and also DOI, we have seen a decline, and this is for Q3, and as for Q4, further production adjustments for own plants will take place. And there will also be a reduction in die bank and foundry goods. In actual value terms, QoQ is expected to decline. Yet, there will be a cutback in scale, and therefore, we can expect DOI to increase. To the bottom right-hand corner, we have the sales channel inventory. Q3 results showed QoQ increase, and as for WOI, 11.1 weeks. And in terms of the actual increase for auto and for IIoT, a decline. The direction is in line with expectations for IIoT. So, throughput in the industry and also mass market was weaker than expected. For IIoT, pushing up the WOI, enhancing Q4, we plan to reduce inventory in these segments, and sell-in will be controlled for that purpose. In automotive, controlled sell-in rather than sell-through will be done to promote efforts to clear out inventory among Japanese customers. We will work to compress channel inventory. As for IIoT, sell-in, more or less similar to sell-through level, is expected. Enhanced channel inventory will basically be flat. Especially supply in markets in auto, 2023 by year-end, we have concluded market inventory adjustment. However, during the interim, for the 40-nanometer MCU, the supply was temporarily tight. Hence, in the first half of 2024, the 40-nanometer MCU inventory build-up has continued. Especially in Japan and the EU, due to the expectations of the auto market weakening, inventory build-up occurred. Now, due to a surplus, we are now at a juncture in which we'll need to control inventory, and therefore, there will be a decline in inventory. Meanwhile, for IIoT, in Q3, WOI is expected to increase as we have indicated. Mainly around MCU, WOI is high. In terms of the actual terms, it is easing, declining. And therefore, in terms of the short-term lead time order, due to the size of the market, in order to support the short-term LT order, we will conduct a control so that we will not have a surplus inventory. Next slide. This is a reference to utilization rate. And to the left, we have the Q3, somewhat weaker than forecast, a decline to mid-40% range. And for Q4, further production adjustment is expected to lower the utilization rate. On average, around 30%, QoQ decline of about 15%. And to the right, we have the CapEx situation. Apart from production, we have decided on CapEx Q3, focus on IP and EDA procurement. And Q4, we will continue with R&D investment. And next page. And this is the revenue. For Q4 and also full year 2024 forecast, please look at the dark blue column. For the mid-month forecast, it's JPY 278.5 billion. And in terms of GM, gross margin 52.5%, operating margin 22.5%, forex assumption 145 yen to the dollar and 160 yen to the euro. And in terms of revenue, QoQ, 19.3% decline, excluding forex. And if you look at the line below, 14.9% decline is expected. And as for the breakdown, we would like to supplement details in the subsequent slide. And at this chart, we are looking at the expectations that bridge Q3 and Q4, and look at it from the left to right. And let's look at the higher yen. 5 percentage point of an impact is to be observed in dollar, 145 yen. And we expect this to continue. We expect the We expect the September rate to continue. And as for the channel inventory reduction, that will be worth 5% or so. And the channel inventory decline is expected. We will apply the control on the auto to compensate for this. Then we have the sell-through at the bottom that's about 10 percentage points. For automotive and also IIoT, generally split half and half. As for auto, for Japan and the EU, we are seeing a weakening of demand. For IIoT, due to seasonality of mobile and also industry and also mass market, decline is expected. Thereafter, we're looking at the supply, and we are looking at a 2 percentage point of impact for parts and supply. This is attributed to quality issues by which temporarily supply for particular components have been stalled, and therefore translating to delay in shipments of particular products. The impact will be 2% in Q4, as expected. However, we will be able to recover the delay by Q4. There's an Altium consolidation impact worth about 2%. Going back to the earlier page, we are looking at the GM, 52.5%, QoQ, that's 3.4% decline. This is attributed to lower utilization rate and weakened production recovery. As for the input utilization rate, we are seeing QoQ 15% decline. Also, for work in progress, we have had to partially suspend operations to reduce inventories. Also, in the front end and also back end process, adjustments have had to be made. Therefore, 15 percentage points in the utilization rate decline for the input, as I've indicated. But more than that, we can expect to see a larger drop in production recovery. Also, year-end maintenance and fees allowance are also expected to rise. With the Altium consolidation impact, this will be partially offset. QoQ, 3.4% decline is expected. And as for operating margin, 22.5% in QoQ, 6% decline is expected. And generally, in OPEX, trends operate QoQ due to seasonally driven year-end adjustment. And starting from October, the global pay raise impact will also be a contributing factor, and also Altium consolidation. And therefore, OPEX baseline terms will increase, but due to one-time factors, it will be offset. And therefore, on a net basis, it will decline. As for one-time factor, we can cite the bonus allowance, which will have to be reverted in Q3. And that is, as it is expected. And also, cost synergy with the acquisition will also help to offset this number. And also, on offset basis, net basis will decline. However, in the revenue, it will not compensate for the decline in revenue. And therefore, the operating margin will be negative. And then, now moving on to the appendix and going on to page 15. The borrowings for Altium acquisition have been executed. And it has been temporarily reflecting goodwill and revised post-PPA calculations. And page 17, please. The bridge, that is to say, non-GAAP reconciliation, there are non-recurring items worth JPY 2.4 billion. And one-time acquisition-related expenses have also been incurred. And also, structural reorganization-related expenses are also among the main items. Page 19, completion of the Altium acquisition. Acquisition completed August 1st, and consolidation started Q3. And most figures recorded under industrial infrastructure IoT segment. The business per se is making good progress. And also, PMI and also synergy effect is to be enjoyed. We are seeing smooth progress. And with this, I would like to conclude my presentation. Thank you very much. [Foreign language]. Thank you very much. Now we would like to move on to the Q&A session. Shibata-san, can you turn your video on? First, I'll explain how to ask a question. If you have a question, please tap on the raise hand button on the screen. We will appoint you in order. Please state your name and affiliation. And then, if you are appointed, please unmute before asking your question. Because of time restrictions, we would like to ask you to limit the number of questions to two per person. Now, without further ado, first from Goldman Sachs, Mr. Takayama, over to you. Please unmute and ask your question. Thank you very much for taking my question. Thank you. Because it's two questions, the first question I have is about Q4. You were talking about a 19% revenue decline. So can you break this down into detail by application? And can you break it down into automotive and IIoT? Also, can you also give us your view on signs of a bottoming out process? Have you already gained visibility looking out into the next quarter, to the March quarter? Because you were just talking about taking a deep breath. I was wondering if you're already looking out into the next quarter, the March quarter. Can you share with us your view, as well as the probability of that materializing? Thank you for your question. The details of Q4 numbers will be given out by Mr. Shinkai, but for myself, I'd like to say, talking about the next Q1, it's too early to say, so I will refrain from doing so. But the reason why I said now is the time to take a deep breath is because up until now, over the short term, it was about stepping on the brakes where necessary, but we didn't want to miss opportunities either. That is how we've been managing the company. But we didn't want to miss the upturn. But now we want to change the balance of taking on the opportunities and stepping on the brakes. So stepping on the brakes is going to be stronger of a balance compared to capturing upturn opportunities. So it's two sides of a coin, but for Q1, right now, our expectations are cautious. The major reason being due to Japanese industrial and automotive customers, mainly. Actually, we're not sure yet, but in anticipation of the fiscal year of March and results, customers may accelerate their efforts to reduce inventory. So just to say this once again, customers have not communicated that to us. However, right now, we want to be increasingly cautious about the outlook. And that is why we have started to account for a slowdown scenario as well. And of course, there are some applications and regions that will grow, but mainly around Japan. From Q4 going into Q1, we expect that there might be pressure of a slowdown. So we're not really expecting a strong recovery from the Q1 next fiscal year. At least at this point, that's how we feel. So from the Q4's point of view, it's kind of be a trend where we're going to be trending at the bottom. And the next earnings call, we hope that the expectation was too cautious and conservative. But we don't want to repeat a process where we're revising down our expectations again. So that's why we changed our outlook. So Shinkai-san, can you go through the breakdown? If you can project page 11 on the screen, please. [Foreign language]. So So looking at the waterfall chart. The second one, where it says inventory reduction, this is mainly attributed to automotive. That's our assumption. And for sell-through decline, which is about 10 points worth of an impact, automotive and IIoT are expected to contribute by half each. And for automotive, and which it's not really which product, but it's more like region, which is Japan and Europe, that is going to weigh and be weak. And also, inventory adjustments by customers, we believe, will contribute by a certain degree. And for IIoT, there's two things to say here. First is mobile. Seasonal factors are expected to lead to this decline. And also, industrial and mass market related QoQ decline is anticipated. For parts supply stagnation, it's predominantly SoC substrates for automotive. That's it for me. Thank you. Shibata-san, going back to your comment and interpreting it from my perspective. For the March quarter, you do want a pickup, and you did feel that you don't have to cut production that much or inventories that much, but by being cautious. Because you regretted what has been done in the first half of the year, are your operations based off assumption that it's going to be really conservative? That's the way I interpreted your comment. Yes, exactly. However, we don't want to be too extreme. If we see signs of a change, we would like to swiftly change the weight of our focus. Right now, as you rightly said, we feel that we need to be very cautious and conservative in managing the company right now. So that leads to my second question. When it comes to the pickup and profitability, then, is it going to be moderate due to the way you're operating the company? Or 55% gross margins or 30% OPM is probably on your minds. Have you changed your approach, or would you like to try to strive for a quick recovery? And also, from a stock price point of view, I think there's higher expectations towards your company compared to the pickup in the cycle. So you have been increasing borrowing, so share buybacks might not be easy to do. But do you have anything on your minds as to shareholder return or share buybacks? Right. Thank you for the question. For margins or gross margins, how should I put it? Of course, we're not in a great position. However, having said that, I think it is being well controlled. The challenge is OPM, actually, for operating margins. When you think about it, I think we were in a rush to grow the company. So this is a regret that has been ongoing. So for the baseline, OPEX has been increasing, but I think we need to become a little bit leaner than where we are right now. So we will be implementing a variety of measures. However, over the short term, it's not about addressing quarterly operating expenses, but we need to take a deep breath and look out over the medium to long term to well control our costs. That's what we would like to do. So in Q1 next fiscal year or Q2 next fiscal year, I'm not sure what's going to happen. But when you look out to the full year next fiscal year, you'll probably be able to know what we had on our minds. So we need to take that kind of bold approach for shareholder returns. Of course, we would like to consider the best of what we can do. But when we acquired Altium, and after Altium, we have talked from time to time about our digitalization vision. In order to realize this vision, Altium is not going to fill all the pieces we need. And that was our initial way of thinking. So it's not going to be multi-billion, but we still have some areas where we would like to acquire and reinforce. So the timing when we can take that action needs to be on our minds. And of course, we don't need the funds. At some point in time, we could allocate that to shareholder return. But if we see an opportunity, we may prioritize that opportunity. But we resume dividends. So we would like to ensure that dividends are paid out consistently going forward as well. Thank you. Thank you. Thank you very much. From BofA Securities, Hirakawa-san, please unmute yourself and present your question. Thank you very much. BofA Securities, Hirakawa speaking. There are two questions. The first of which is in Q4, your revenue plan. And as a backdrop, I believe I have been able to understand your train of thought. How sell-through decline, Q1 QoQ 10% decline is expected. However, the performance of your peers have not really been disclosed as of yet. But it appears as if your outlook is rather weak. And sell-through 10% decline. What would you say about the factors? And your train of thought? As you have pointed out, if you look at this target itself, we understand that this does appear to be very constrained because of the forks. Automotive put together accounts for about 10% in terms of contributing factor, but in terms of the end demand, and we look at the breakdown, we find that on the customer side, there are inventory adjustments, which account for quite a sizable portion of the total, and hence, when the final product is into the market, and if that is a contributing factor for the decline in demand, that is not the case, so what is the factor behind the 10% decline for auto, as Shinkai-san has earlier mentioned, and you might recall, at the beginning of the year, I talked about RH850 MCU, and we will attend to demand, but given the situation on the customer side and also the sales channel side, and also on our side as well, there have been movements to step up on inventory buildup, and that has prolonged. This level of inventory is truly appropriate compared to other products. There has been a delay in the timing. We should have taken action to reduce inventory. However, we have witnessed a delay, and therefore into Q4, the impact will hit our performance. Therefore, it may appear very sizable. I would like to repeat, but year-on-year basis, that is not so dramatic. In automotive business alone, it is not as if our revenue has been dramatically hit, even if we look at this very objectively. So the performance this year was not that bad. On the other hand, on IIoT side, in terms of substance, we do recognize a decline. Also, as Shinkai-san has earlier mentioned, about Q3, 30 percentage points, as a figure has been mentioned. This describes the sizable decline that we are witnessing versus our competitor. If this number is very weak, where would the impact lie? Of course, it really depends on who we compare this to. But if we look at the exposure to our local customers in China versus our competitors, it is rather small. And on top of that, and this is also something that I've mentioned at the beginning of the year, it really depends on who we compare ourselves to. And then generative AI, our solution exposure has grown very strongly. But compared to the revenue overall, it is not a large proportion. And hence, when it comes to the downside in other areas, we have not been able to really offset this number. But what is as peculiar to our business is the way we take the how we capture the sockets. And we find that the mobile is rather weak. As we move into the next year, the new sockets will increase. In terms of substance, we have to, of course, refer to the exposure in China and also related smaller customers. Smaller in size, but also generating growth. This is an area in which we have not been able to really build upon compared to our peers. Therefore, there have been swings in the business cycle that has also had an impact on our IIoT business. Thank you very much. The second is about power semiconductor devices. We have to divide this into three components. What about the line and also the P&L in 2025? SiC is going to begin. So those are the two questions. Then related to SiC, for Wolfspeed, your deposit of $2 billion, is there? Do we need to attend to the risk of impairment losses? Thank you very much. The points you have raised, well, they're very good questions. As to the Kofu utilization, more than expected, we are expecting today. The operations have already begun at Kofu. However, when it comes to commercial production, we need to take a more cautious approach. In 2025, what is our plan? We still have some time before 2025 comes around. I will not be able to make a decisive comment. However, we will take a cautious approach so that in order to delay the process to the extent possible, and on a similar note, for SiC, to quite some extent, the market situation, of course, we need to look at demand and supply and also the competitor situation, as well as the business in China. We find that there have been substantial changes that are different from our company. And the difficulty with SiC is to be sure that we do not rush forward. We understand undoubtedly that this is going to be a growth market. And of course, we need to take a very long-term perspective. And rather than focusing in the beginning of the business, we have to place an emphasis on R&D. And that is how we'll be shifting our focus. And therefore, for Wolfspeed, initially as expected, we will. Are we going to procure wafers? That will not really be the case. And therefore, there has been a change in plan. Of course, there are some sensitive matters. And therefore, I will not be able to, at this point in time, disclose everything. Wolfspeed chips, under the CHIPS Act funding, acquisition has been made. And that will enhance the possibility of recovery of our deposits into Wolfspeed. However you look at it, this is going to translate to a positive. Therefore, in terms of cash interest, payment to be received, we have agreed on a delay. Not only that, at the same time, of course, I will not be able to quote on details. However, as Renesas, we are to Wolfspeed, there are obligations and liabilities to address. There have been changes so that there will be a win-win engagement for both sides. The question arises as to whether there will be a $2 billion scope of demand. The situation has changed dramatically. However, as to expectations of recovery of the $2 billion deposit because of the CHIPS Act, in terms of financials, the processes are brighter. The 8-inch operations that Wolfspeed is up and running, the concerns can be eased. Therefore, compared to a while ago, we believe that we can take a more optimistic view. Thank you. Thank you very much. There's a follow-up question in terms of changes to the liability terms. Of course, when the time comes, are you going to disclose the information to us? Yes. We may not be able to, of course, divulge all the specifics. But however, as the implications, we will be able to share information with you. Thank you very much. Thank you very much. The next person is from Citigroup, Mr. Fujiwara. Please unmute and go ahead with your question. This is Fujiwara from Citigroup. I also have two questions. The first one is about the sell-through demand decline for Q4. It's about three months from your previous earnings. During the three months, from when did the probability of demand decline materialize? And also, in the past three months, up until right now, talking with your customers, for the demand decline, do you think this is going to continue? Is it continuing, or has it settled down as you approached this earnings call? That's my first question. Thank you. So the demand decline for Q4, from when did we sense it? I would say it is due to the conditions of the Q3. What I mean by that is, I have mentioned this from before, but the demand and supply situation has changed quite a lot. And short lead time orders have been increasing, as Mr. Shinkai has mentioned, before the quarter started. There were some orders that were not a backlog. So the orders came in when the quarter started. So that was what we were not anticipating at the beginning of the quarter. And when you compare with the trends that we've been seeing so far, after entering Q3, short lead time orders, we did forecast in our planning how much of those types of short-time orders will come in. However, or July, well, August, maybe it was summer vacation, but maybe it's a little bit weaker than we thought. And then entering September, there's only four weeks left. However, last-minute orders didn't really come in, is what I've been hearing. So even for short-term orders, it seems that it became weaker. So that's the reason why. So I would say from around the summer, holiday season, we were wondering if that's the case. And we started to feel that things have changed ever since we entered September and ever since I've started to get everyone's feedback. And also, for the Q4, Shinkai-san, would you like to speak about it? Excuse me. What am I supposed to talk about about the Q4? So over the past three months, it's been about a month ever since the Q4 started. And you just talked about short lead time orders, but is the demand outlook deteriorating, or has it settled down? Or short lead time orders in balance with that, when you look at order booking trends, further deterioration is not a trend we're seeing. It's not a trend we're seeing. As usual, we are low. We are trending at low levels. And that's how we are anticipating October. And to add a comment here, short lead time type orders and our forecast, we have reduced it to close to zero now. So if anything were to happen, or if anything were to come in going forward, that will be an upside for us. So that's a big change we have made this time around. And speaking with customers, I would say for automotive, first of all, compared to three months ago, I do feel that it has become quite weaker, weaker for other areas compared to three months ago. I don't really feel that there has been a big change. Whichever customer you talk to, they talk about a recovery, anticipated recovery in the first or second quarter next fiscal year. Although their comments don't have a reason why. So my gut feeling is that we haven't been seeing an improvement, nor have we been seeing a deterioration. All right. Thank you. My second question is about, well, earlier, you talked about free cash flow, and Q3 numbers were weak. And with your performance weakening, I would anticipate that free cash flow is also going to decline. You acquired Altium, and you increased your borrowing substantially. And for the repayment schedule, will it be impacted in any kind of way, or will this also impact your dividend payout? So Mr. Shinkai will address that question. So for Q4 free cash flow, it's likely to be about the same level as the second quarter. So that repayment or dividend impact is not expected. That's all from me. That's all from me. Thank you. [Foreign language]. Please unmute yourself and present your question. Thank you. This is Kojima from Nikkei BP. There are two questions. The first, the earlier earnings call, and you have mentioned action to be taken. And recently, taken up by the media, how will the trends translate to your business? I'm just going to throw out the questions at the outset. Earlier, you disclosed that an action to be taken. And there are two things that come to mind. This is in reference to Altium acquisition, where the platform will be developed. I believe that is what you have said. Will that be impacted? And then the other question is in reference to automotive products, the next-generation product with functionality have been enhanced. You will work on in your R&D efforts, you have mentioned. And with the tightening, what will be the impact? Will there be an impact? So these are questions in reference to the action forward. And the second set of questions is in reference to the market trend. And how would that play out in your business? In terms of trends that come to my mind, there are two. For DDR5, transition to some extent have progressed. So what is the impact there? Is it a positive or a negative impact? The second is in HEV. HEV is on the rise. EV is kind of trending downwards. HEV is on the rise, whereas EV is kind of stagnant. I would like to inquire as to the impact on these. And SoC Generation 5? And the digitalization platform? I would say that there is absolutely no impact, and we are progressing as initially intended. That is how we will proceed. I would hesitate, given the situation, to speak about activities ahead. I would like to be cautious, but if things go well for R-Car Gen 5 in November or December, we will be able to disclose information about progress made, of course, if all goes well. I would like to ask you to stay tuned. For Altium Digitalization Platform, two weeks, Electronica, two weeks ago, there was an exhibit called Electronica, where just a part of our new projects will be exhibited. So that's not two weeks ago, but that's two weeks ahead. I would like for you to also come to visit our exhibit. This is something that I'm very proud of. So I would encourage you to take a look. For DDR5, however you look at it, for Renesas, it is a positive. There is no negative factor there. For DDR5 this year, we mentioned that it is really going to pick up, but beyond expectations, it is slower than earlier anticipated. I may have mentioned that the power management from other companies, when combined, presented a problem. Therefore, our power management IC to be qualified; this has consumed time. This has been the major factor. When we combine, of course, devices from various companies, of course, this is very challenging. I'm sure that that has been well understood by customers, and therefore, when going to the next version, our memory interface and power management IC will be combined, and however you look at it, this will be, of course, a tailwind for us. It's too early to say, but in terms of direction forward, I will absolutely say for certain that this is not going to be a negative factor, so please put your concerns to rest. For HEV and HEV, EV is going to slow down. For business, it's not necessarily a negative factor. I'm sure that others are concerned about for HEV. Is it going to be a tailwind? And if so, is it going to be a tailwind for Renesas? I'm sure that is a point in question. I would say yes, but not to such a sizable extent. Therefore, when we look at the trend, more than expected, the EV start has taken time. That's not necessarily a negative. Having said that, was it Fujiwara-san presented a question about power devices? And how that is rolling out? Of course, for the company, it is also a negative. Therefore, we will begin IGBT come next year and SiC as well. This has been a very ambitious plan that we have put together. The situation has changed, and therefore, we will take a cautious approach into next year. Therefore, in terms of the numbers per se, it would be fair to say that it is a negative. Thank you very much. That was service reference. Thank you. [Foreign Language]. We have received some other questions, but as we are drawing to the close, we would like to end the Q&A session. So finally, in closing, Mr. Shibata will speak. So for two quarters in a row, the downward revision of the guide has been widening. So I don't think it's appropriate for me to say a lot about this, but we will be changing perspective from here on and ensure that we show results. So for the Q4 and the Q1 next year, we will be more cautious in our management. And we hope that in Q2 next year or in the second half next year, we will be ready for Q2 or the second half next year from a cost perspective and also continue on with our R&D. So we don't want to be reactive on a quarterly basis, but we would like to have a long-term perspective. So we would like to ask you for your ongoing support. Thank you very much for joining today. That concludes Renesas's fiscal 24 Q3 earnings call. Thank you very much for joining today.