Let me introduce the participants from the TDK side. Noboru Saito, President and CEO. Tetsuji Yamanishi, Executive Vice President. Corporate Officer, Fumio Sashida. Corporate Officer, Taro Ikushima. Corporate Officer, Takao Tsutsui. Thank you again for your kind attention. This is Yamanishi. Thank you for your taking time despite of the schedule. We are so honored to have so many people attending this financial briefing for the first quarter of the FY March 2024. We are here now to go through the consolidated results. First, the highlights of the results. The global economy is in unstable situation with the speed of growth slowing down due to the prolonged inflation and the continued monetary tightening policies in the U.S. and European countries. The yen has been depreciating against the US dollar and the Euro. This has become a remarkable situation, in the, you know, FX space. Under such the business environment, the electronics market, which will have an impact on our performance, is suffering from a prolonged sluggish final demand, slowing down the demand for ICT market. HDD market and automotive market are now faced with changing demand trends. On year-on-year basis, our net sales was down 1.4%, and operating profit was down 41% year-on-year. In the ICT market, sales of passive components, especially for smartphones, declined significantly, while sales of HDD heads and HDD suspension assemblies dropped sharply due to 31% year-on-year decline in demand for HDDs. In the automotive market, sales of passive components and sensors grew, but remained sluggish compared to our initial forecast due to customers' inventory adjustment of automotive components. In the industrial equipment, sales of power supply and the products remained firm. Demand for ICT-related devices, which has been sluggish, is expected to decline in the second quarter onward from our assumption we made in the beginning of the fiscal year. In particular, the production volume of HDDs for data centers is expected to decrease significantly. In addition, the demand trend for automotive components has been changing due to the inventory adjustment by some customers. As a result of reviewing the order and forecast in light of such demand outlook, we expect the sales of HDD heads, suspensions, and passive components to fall below the initial forecast. We have revised down the forecast we have announced on April 28th. In addition, we expect that it will take some more time for HDD demand to recover, so we have included in our forecast, structure reforms to optimize the production operations for HDD Heads and Suspension Assemblies. Allow me to explain the summary of the business performance. The foreign exchange fluctuation had an effect of increasing net sales by approximately JPY 18.1 billion and operating profit by approximately JPY 6.5 billion, resulting in the net sales of JPY 503.4 billion, down JPY 7.1 billion, or 1.4% year-on-year, and operating profit becoming JPY 26.3 billion, down JPY 18.3 billion, or 41%. Profit before tax becoming JPY 21 billion, and net profit becoming JPY 14.7 billion. Earnings per share became JPY 38.82. As for the sensitivity to the Forex fluctuations, following the last time, we estimate that a JPY 1 change in the yen dollar will result in annual change of approximately JPY 2 billion, and JPY 1 change in the euro will result in annual change of approximately JPY 600 million. I will explain the situation by segment and for the full year. Sales of passive components was JPY 140.7 billion, slightly down by 1.1% year-on-year. Although our sales to the automotive market, mainly for xEVs, grew, sales to the ICT market declined, pushing down the profit by 42.3%. Aluminum film capacitors and film in sales into the automobile and the renewable energy sectors secured both sales and the profit. The ceramic capacitors grew in sales for the automobile market. due to the decline in sales volume for the distributors, profit declined slightly. High-frequency components and having a high portion in smartphones declined both in sales and profit. Inductive devices and the piezoelectric components and the Circuit protection components grew for Automotive business, but it declined in ICT market and industrial equipment, as well as the sales for distributors declined, resulting into a drop both in sales and profit. In the sensor application products business, net sales, JPY 38.8 billion, almost flat from the previous year, and operating profit, JPY 600 million, down 76.7%. Temperature and pressure sensors grew due to the high-end sales into the automotive industry. In magnetic sensors, sales of Hall sensors and TMR sensors increased for the automotive market. The sales for smartphones remained almost at the same level, resulting in a higher sales. Due to the advanced investment for increased production, pushing up fixed costs, profit declined slightly. In the MEMS sensor business, sales of motion sensors for the automotive industry expanded, but sales to the ICT market declined, resulting in lower sales and lower profits. In the magnetics and applied products business, net sales being JPY 38.2 billion, significant drop, and as much as 30.7% year-on-year. Operating profit was a significant loss of JPY 9.7 billion. In the HDD head and suspension business, sales volume of both HDD heads and suspensions for Nearline HDDs fell sharply and posted a loss as a result of 31% year-on-year decline in overall HDD demand, due to the decline in investment and the data centers, caused by economic slowdown and the prolonged HDD inventory adjustment. As a result, sales volume of both the heads and the suspension for HDDs declined significantly from the previous year, resulting in a significant drop in sales and posting a loss. Sales of magnets increased due to higher sales for xEVs, but a delayed improvement in the profitability and due to delayed productivity and improvement. Next, Energy Application Products. Net sales being JPY 274.9 billion, and operating profit being JPY 32.2 billion, up 5.7% and 17.7%, respectively year-on-year. In the rechargeable battery business, sales for the small batteries as for smartphones increased, but sales of medium high-capacity batteries decreased due to the transfer of joint ventures, and overall sales and the profits were almost unchanged from the previous year. Power supplies for industrial equipment grew both in the sales and the profit thanks to the firm demand for semiconductor manufacturing equipment and medical equipment. Its profitability improved significantly. As for power supplies for the EVs, on top of the increased revenue, we were benefited by the structural reform we had toward the end of the previous fiscal year. We are happy as for this. I will then explain the factors behind the change in the sales and operating profit by segment from the fourth quarter of the previous fiscal year to the first quarter of the current fiscal year. The passive components segment. Net sales was up JPY 3.2 billion, or 2.3% from the fourth quarter, while operating profit declined JPY 800 million, or 5.5%. The Aluminum film capacitors for renewable energy and other industrial equipment grew. As for the other products, sorry. As for other products, excluding the Forex impact, the overall net profit declined in real terms. Net profit declined. Sensor application products. Net sales was slightly down by JPY 200 million. As for operating profit, excluding one-time cost of JPY 2.5 billion, which incurred in the fourth quarter, it grew slightly. Temperature and pressure sensors for the automotive market grew, resulting in increased sales and profit. Magnetic sensors turned out to be in flat, though the smartphone business declined in sales, the sales for the automotive market increased. Operating profit grew slightly. MEMS sensors, while sales for the Automotive grew, the ICT sales turned out to be in a sluggish, pushing down both sales and profit. Next, the Magnetic Application Products. Sales decreased by JPY 5.1 billion or 11.7%. Operating profit, down by JPY 3.7 billion in real terms, excluding a one-time cost of JPY 26.9 billion, which occurred in the fourth quarter. Sales of HDD has declined 35% from the fourth quarter, mainly as a result of the further decline in the overall demand for Nearline HDDs, while sales of suspension also declined, resulting into a significant decline in the overall head sales. Operating profit improved despite on a loss as the result of the effects of the structural reforms and the cost improvements. Magnets saw a slight decline in sales, profit has been improved. In the Energy Application Products segment, here on the sales are up by 14.8% to JPY 35.4 billion. Operating profit increased by JPY 6 billion in real terms, excluding a one-time cost of JPY 17 billion incurred in the fourth quarter. In the rechargeable battery business, sales of medium-capacity batteries decreased due to the transfer to joint ventures, while sales of the small batteries for ICT increased, resulting in an overall increase in both sales and profit. Sales and profit of industrial power supplies remained strong, with increased sales and profit. Sales of power supplies for EVs increased, and profitability improved, partly due to the effect of the structural reforms. Next, analysis of the change of operating profit, the decrease in operating income of JPY 18.3 billion. This was due to a JPY 36.3 billion decrease in profit from a decline in the sales volumes of HDD heads, suspension, and passive components, and JPY 9.5 billion decrease due to changes in selling prices. The decrease in operating income was due to the impact of the decrease in the sales volumes, which could not be offset even by the increase in operating income of JPY 6.5 billion from the depreciation of yen, rationalization cost reductions of JPY 5.2 billion, mainly in secondary batteries and passive components, as well as the effects of structural reform implemented in the previous year of JPY 4.2 billion, and the increase in operating income of JPY 11.6 billion from the efficiency improvements of the SG&A. I would like to continue with an overview of sales increase and decrease of the first quarter to the second quarter of the fiscal year. In passive components, we expect overall sales to increase between 0%-3%, +3%, mainly due to an increase in the sales of the ceramic capacitors for automotive applications. Sales of sensor application products are expected to increase between +9% to +12% due to steady sales for automotive applications, as well as increases in sales of magnetic sensors and MEMS microphones for ICT applications. In the area of magnetic application product, sales volume of HDD heads is expected to increase by approximately 20%, but slightly decrease due to the impact of foreign exchange rates, while sales of suspensions are expected to decrease by approximately 14%, resulting in an overall decrease of -5% to -8% in sales. In Energy Application Products, in rechargeable batteries, while the volume of small batteries is expected to increase due to the launch of new smartphone products, the transfer of the medium size of the batteries business to JVs is expected to increase, resulting in -2% to +1%. As a result, overall, sales are expected to increase by -1% to 2%, but excluding the impact of lower sales due to the foreign exchange, sales are expected to increase by +3% to +6%. That is all my presentation today. Thank you very much. I am Saito, President and CEO. Thank you very much for joining us today. I explain full year forecast of FY March 2024. First off, I would like to explain the division of the production volume forecast for major devices leading to our company, our business, which is the assumption for our earnings forecast. As for the automotive markets, the shortage of semiconductors and other factors are on the way to being resolved, and xEV production volume will remain steady, so there will be no change from the volume assumed at the beginning of the period. On the other hand, however, in passive components and the sensors for the automotive market, we expect the demand to be lower than we had assumed at the beginning of the period, as some customers are making significant adjustments to their component inventories. The production volumes of the smartphones, which represents the ICT market, has been revised from the initial forecast of 11.18 billion units to 11.08 billion units due to the uncertain macroeconomic environments, as well as the lower replacements cycle, longer replacement cycle of smartphones. The forecast for 5G smartphone has also been revised from 607 million units to 598 million units. Next, in the HDD market, due to rapid changes and the data center investment environment, we expect the customers' HDD inventory consumption will take longer time than we had assumed at the beginning of the fiscal year. Due to these factors, the production volume of Nearline HDDs for data centers, which was expected to be 60 million units, up to 9% from the previous year at the beginning of the Fiscal Year, has been revised downward to 42 million units, down 19% from the previous year, far below the initial forecast. We have also made downward revisions to our initial forecast for the PCs and the tablets. In light of these circumstances, we have revised our full year forecast for the Fiscal Year ending March 2024, now we present forecast net sales of 1 trillion, JPY 1.970 trillion, and operating incomes of JPY 150 billion, and a net income of JPY 105 billion. The exchange rate assumptions for the two- Q2 and onward and beyond, they remain unchanged from the beginning of the period, and there is no change in the dividend from the beginning of the fiscal year. I will now continue with an overview of the projected increase and decrease in sales by segment after the revision for the fiscal year ending March 2024. In the passive components segments, we expect the sales increase of ceramic capacitors and other products for the automotive markets, especially for xEVs. However, sales in the ICT markets, industrial equipment market, and sales to distributors are expected to fall short of initial expectations. As a result, overall segment sales are expected to grow only 2%-5% year-on-year basis. In the sensor application product segment, sales of magnetic sensors and temperature pressure sensors for the ICT and automotive markets are expected to increase. While sales of the MEMS motion sensors and the microphones for the ICT market are expected to grow less than initially expected. A result of that, Our focus with sales growth is only 1%-4% over the previous fiscal year. In the Magnetic Application Products segments, as explained earlier, the production volume of Nearline HDDs for data center is expected to be much lower than initially expected. Accordingly, sales of HDD heads and the suspensions are also expected to be much lower than initially forecast, resulting in 13%-16%, -13% to -16% year-on-year decline for the segment as a whole. In the Energy Application Products segments, sales of a medium-sized rechargeable batteries business are expected to be lower than initially expected, due to the transfer of the medium-sized rechargeable batteries business to a JV, which is progressing faster than initially planned. The other hand, sales of small rechargeable batteries are expected to exceed the initial projection due to an increase in the market share and then other factors, and the segment as a whole is projected to be -14% to -17% at the previous year's level. The breakdown analysis of the JPY 40 billion decline of operating profits, HDD head and suspensions, the HDD heads and suspensions, so declines, decrease in the sales of a passive components and so forth, and that will be pushed down by the profit by the JPY 60.2 billion. We have recognized JPY 3.5 billion as a structural reform expenses for HDD heads and the suspensions, and the effects of those expenses is to be JPY 1.7 billion. In addition, we expect to achieve an additional JPY 10.7 billion from streamlining cost reductions and JPY 14 billion reduction in SG&A expenses, including other expenses. The profit fluctuation due to foreign exchange is expected to be +JPY 2.7 billion, based on the Q1 results and assuming the exchange rates of JPY 130 to the US dollar and JPY 142 to euro in Q2 and onward. Next, I will explain how we are responding to the rapid changes in the HDD market that I have just described. CSP, and that stands for the Cloud Service Providers. The trend of increasing CapEx allocation to AI-related projects has become more conspicuous since April, while the renewable, renewal cycle of general-purpose servers and the storage systems have been longer, and the storage utilization rates have been rising. As a result, the production volume of HDDs dropped significantly due to the slowdown of HDD inventory consumption, and the demand for HDD heads and suspensions also dropped significantly compared to our initial forecast. In response to these drastic changes in the market environment, we have decided to restructure our profit structure. Specifically, we will lower fixed costs by reducing headcounts and consolidating bases, and establish a structure that will enable us to achieve breakeven at the demand level of the latest second half. As a result, JPY 3.5 billion of structural reform expenses will be recognized this fiscal year, and the cost improvement effect is expected to be JPY 1.7 billion this fiscal year. Next, we have decided to review various expenses in line with the changes in the business environment. We plan to reduce the acquisition of fixed assets from JPY 260 billion to JPY 240 billion, depreciation from JPY 185 billion to JPY 180 billion, and R&D expenses reduced from JPY 180 billion to JPY 170 billion each. Finally, please let me talk about cash flow projections. Free cash flow is expected to be JPY 80 billion as planned at the beginning of the fiscal year, due to the review of the capital investments and the inventory reduction plan. As explained now, we will implement additional measures to respond to the rapid changes in the business environment. As we have explained in the past, we will strive to maximize sustainable corporate value by capturing demand related to decarbonization, including EVs and renewable energy, and the demand for sensors that are essential in the data s-.