Thank you for waiting. It is now time to begin. We will now start TDK Investor Day 2026 Enhancement of Corporate Value through Pre-Financial Capital. Thank you very much for joining us today. I would like to serve as the MC. My name is Ito from TDK's IR department. Let me briefly introduce today's agenda. First, we will have opening remarks from CEO Noboru Saito. This will be followed by the CHRO session and the CTO session, each lasting approximately 20 minutes. Finally, we will have approximately 45 minutes for a Q&A session with today's speakers and attending executives. Mr. Saito, please. Good afternoon. Usually, I would be speaking from the podium on this side, but today I have my smart glasses that I'm wearing, so I would like to use that for my opening remarks. Once again, thank you very much for attending this session despite your busy schedules. I am CEO and President Saito. For today's agenda, it is just as shown on the slide. Last year, we also held a briefing on pre-financial capital. Today, I would like to focus on one of my commitments, strengthening the management of pre-financial capital, and we will explain about our technological capabilities and the human capital that supports them. This slide shows how our materiality, medium-term plan, and human resources strategy support our long-term vision and strengthen pre-financial capital. To realize our long-term vision, our materiality focuses on maximizing corporate value while creating long-term value for all stakeholders. Our approach is to align the sustainability of society with that of TDK. Pre-financial capital. Our key materiality areas are R&D that contributes to social transformation, and promoting and developing talent that supports R&D and continues to create competitive advantage. Our human resources strategy is closely aligned with our corporate strategy. To realize our long-term vision, we see human capital not simply as a resource, but as the driver of transformation and a core form of capital that drives strategy, execution, and value creation. We face two major management challenges in transforming our business, strengthening existing businesses, and transforming our business portfolio. To address these challenges, we need to strengthen our human resources and transforming human resources capabilities. We need talent who can drive business transformation and innovation, and how to attract and develop such talent is something our CHRO, Andreas Keller, is going to explain right after myself. This talent will continue to drive our growth strategy, particularly our business portfolio management, as we work toward our mid to long-term target state. The biggest driver of this growth strategy is the expansion of our business for the AI ecosystem. By FY March 2031, we plan to increase sales to about three times of the FY March 2026 level. In the first quarter this year, growth has been stronger than we initially expected. Today, this gray part, new business expansion, is something we are talking about. We will talk about cutting-edge technology development and the solution business using software and other technologies, and our CTO, Shuichi Hashiyama, and DGM, Jim Tran, will give you presentations. Thank you. Thank you very much, Mr. Saito. Without further ado, we would like to start the CHRO session. For the CHRO session, for the CTO session, we are going to have an English presentation. Therefore, who would like to use the interpretation service into Japanese, please use the receivers. Those who are participating through Zoom, you do not need to switch the language. Keller-san and Greg-san, please. Thank you, Ito-san. Good afternoon, everyone. My name is Andreas Keller. I am the CHRO of TDK. Last year, I stood here with Tomoyo Hiraoka and Angela Yuan, and I am pleased that Hiraoka-san is with us again today over there. However, this year I will present together with my colleague, Greg Brower, another key member of our global HR leadership team. Together, we will spend the next 20 minutes on what we believe is the most fundamental driver of TDK's ability to execute on everything you hear today, our people. When you look at the title, Human Capital Management: Fueling Innovation and Inclusive Growth, the title says it all. Every growth target, every technology ambition, every market expansion, none of it happens without the right people, without the right capabilities, in the right culture. This is what Greg and I are here to demonstrate. My background before TDK was Hilton Hotels, 13 years in multiple countries, which is an industry where every single competitive advantage ultimately comes down to people. I carried this conviction with me when I joined TDK 26 years ago at our German subsidiary, starting in supply chain, moving through various functions in business administration, HR, and eventually making my way to this role as CHRO. That journey across so many of TDK's chapters of change gives me both perspective and conviction. Perhaps more importantly, it is itself an example of what I am here to tell you about, TDK's genuine capability to identify, develop, and grow its own leaders. Everything in our HR approach begins with one principle, Rendō, alignment. As Saito-san said earlier, HR strategy and corporate strategy do not run in parallel in TDK. They move as one. Delivering what strategy requires us to build a talent portfolio of four distinct strengths, which you see at the bottom left, people who drive business transformation, people who drive innovation, people who are capable in AI and software, translating that capability in solutions, and finally, people who can directly deliver those solutions to our customers. These four are not aspirational. They define the talent portfolio we are actively building today, and five HR pillars bring this to life, which you can see on the right in our HR strategy, which is attract and develop talent, inclusive leadership practices, global leadership pipeline, organizational capability and efficiency, and finally, team member health and engagement, getting more and more important, all driven by our TDK United transformation. To bring this strategy to life, we use a model we call the TDK Human Induction Cycle. I have to be honest, I love this because this is very much like TDK. Just as an inductor stores energy in a magnetic field and releases it efficiently when needed, we bring in individual potential, enhance it through our culture, and release it as business and societal value through TDK's transformation. Like an inductor, this is not a one-time charge. It is a continuous self-reinforcing cycle because stronger culture builds a stronger pipeline. A stronger pipeline drives greater innovation. Finally, greater innovation attracts exceptional talents. This cycle is driven by three initiatives, which you can see on the right. Enhancement of our human capital as a change driver, strengthening value creation through TDK United, and finally, advancement of technical capability. Let me show you how this maps to our value creation model. This slide represents the output and financial dimension of our human capital strategy. We believe human capital investment must be measurable, not just in engagement scores, which is of course very important, but in its direct contribution in financial value creation. We track human capital return on investment as a key metric, and we are actively working to define clear benchmark targets in dialogue with you, our investors, going forward. The TDK Human Induction Cycle you have seen on the previous slide, operating at full capacity translates into faster innovation cycles, stronger leadership decisions, lower organizational friction, and improved market positioning. These are not just soft outcomes. They are strategic returns on people investment. Today, I want to take you through the major KPI progress that demonstrates this model working in action. But first, let me anchor it in three cultural values that make everything possible: functional equality, venture spirit, and diversity. Functional equality. Every team member has a meaningful voice, regardless of title or location. It is the cultural condition that makes genuine engagement real. Something very special about TDK. Venture spirit, TDK's entrepreneurial DNA. The drive to always challenge, always create, and always be willing to pursue the new. It is what makes our internal incubators possible. Finally, diversity of thought, background, gender, and nationality. It is the fuel for differentiated innovation. Diverse teams, I think you all agree with me, diverse teams see problems differently and solve them better. These are active operating principles we measure, reinforce, and hold ourselves accountable to. Let me show you the KPIs. The first major output KPI I want to highlight is team member engagement. We monitor this globally through an annual survey, paying particular attention to our communication score, which is also quite unique, because we believe that the quality of communication is the truest measure of functional equality in practice. Our engagement score has risen from 72 points in FY 2024 to 76 points in FY 2026, which I believe is a meaningful step forward. Our communication score has grown from 67 points to 71, advancing towards our target of 75 points or more. Our response rate has climbed from 80% to an incredible 92%. A 92% participation rate at a global company is exceptional, and it tells me our people trust that their voice matters. How do we achieve this? Through concrete initiatives, like in the middle below, you can see the quarterly global town hall meetings that we established. We held four last fiscal term, where every employee worldwide can ask questions directly to the management team. New member induction ceremonies, one is, you can see on the left, and events like the International Women's Day used as a genuine platform for inclusion dialogue globally. Moreover, it is not shown on this slide, but every department in every location is having follow-up conversations with their respective teams for improvements. You might recall our Global Management Development Program, GMDP, from last year, so let me go straight to the progress. Just to remind everyone, the program runs across four different management levels, TCDP, GMP, GAMP, together with the IMD Business School in Lausanne, and GEMP with IESE in Spain and Shiseikan University in Japan, covering approximately 1,250 participants in total so far from territorial leaders, all the way to our most senior executives. The progress for this midterm speak for themselves. Cumulative GMDP participants stand at 367 on track towards our target of 500+. Female participation is growing year-on-year from 25.4% over 25.7% to now 26.1%, advancing also towards our target of 30%. Also very important, successor readiness for top executives has reached 212%, well beyond our 200% target. It means we have more than twice as many ready successors as positions to fill. I would like to emphasize one point. GMDP is not just building leadership pipeline. It is also about creating business. Through our Global Executive Management Program, the top program, participants have launched real ventures. Let me highlight SensEI, which you can see on the right-hand side of the slide, as Jim Tran will talk about it during the CTO session. It is a company established entirely by GEMP participants from outside the Sensor Systems business company. They identified an opportunity, formed a cross-functional team, and built a new business. SensEI is now a functioning venture. By the way, Jim Tran, as well as our CTO, Hashiyama-san, have both participated in this GEMP program. The other startup companies that emerged through our TDK LaunchEngine, formerly called the TDK Kindergarten, were already mentioned last year, so let me skip that part. This brings me to the next dimension of our talent strategy. How we make TDK visible and compelling to the world's best talents. Let me first share the strategic framework and then hand over to my colleague, Greg Brower, who will elaborate on this important topic further. Let me emphasize one point. Employer branding is not only a communication exercise. It is a strategic business lever that drives competitiveness and sustainable growth. Corporate branding answers, "Why should I buy from TDK?" While employer branding answers a different question entirely, the one every candidate and every team member asks, "Why should I work for TDK, and why should I stay?" Separate strategies, but deeply aligned. Again, an alignment in Rendō in action. Our employment branding strategy targets three outcomes. Becoming the employer of choice for top seekers, giving team members compelling reasons to stay and grow, and strengthening the HR pipeline for our management bench, which you can see on the right top side. Delivered through four goals just below, a unified global identity, consistent messaging across all markets, clearly communicating our appeal, and building long-term trust with candidates, our team members, customers, and society. I now hand over to Greg Brower. By the way, he joined TDK in 2017 through the InvenSense acquisition, another example how our strategy works, and he is now leading our global HR business partnering. Greg, over to you. Thanks, Andreas. Seems you have done some of my introduction. Prior to joining TDK, I was at a company called Cisco. It is a global IT enterprise company, and I had a variety of roles that prepared me for this one, working in IT, manufacturing, engineering, and also HR. Today, we will discuss aligning the strategy through a shared culture of employee branding. It is a Rendō use case for us, and we are going to take you from concept to implementation. Employer branding should be aspirational to attract talent. TDK, in everything better, is a wonderful description. For our team members, our employees, there must be consistency and integrity between our brand and their lived working experience. Whether you are hired in university, mid-career, or through an acquisition, we understand and encourage team members to share their voice, their authentic voice. We then build a coherent global story and scale that impact through structured social media, career pages, local recruiting events. Our branding campaign is consistent, scalable, and effective. That is Rendō. We are transitioning from autonomy to a more structured, aligned entity through employer branding. Let us look at some real activities. To attract talent, we implement employer branding to keep our current and future team members engaged. For new graduates, Mr. Keller already mentioned the special onboarding we do at the World Athletics Championships, and we also already mentioned the town hall meetings to keep our team members engaged and informed. Let us focus on the middle picture. What you are going to see is a group of engineers that we invited to attend the TDK Tokyo E-Prix. Our HR team and our tech IP team ensured that all of those potential engineers understood TDK and as well understood our special technical partnership with Porsche. We used the brand to attract the talent in, and then what we do is show them our exciting world of technology within TDK. The results show it. You can see how we have increased the amount of candidates applying by 140%, but there is also a branding result here that we would like to share with you. According to the Toyo Keizai's ranking, TDK ranked 100th in the most popular company among 2027 graduates. We are paying attention to this, and we are focusing on it for continual improvement as you see it rise into the future. For the fourth time, TDK has also been qualified as a top employer in Germany for the Top Employers Institute. These are trends that we see globally, and it is because we are focused on looking at our brand and telling a cohesive story to the market. Let us look at how TDK leverages brand to support our growth strategy. Mr. Keller has already emphasized the alignment of the HR and the business strategy. These must connect for us to win. Let us dive into a use case of strengthening the technical capability together. TDK creates value by providing solutions to our customers. We have expertise in materials and process, and we are strengthening our software capability, which is critical for a total solution. With the Chief Technology Officer, we have an approach. First, we must have both software expertise with an understanding of TDK devices. Second, we must be able to adapt to the business by understanding changing customer requirements and applications, security, and regulatory requirements globally. Third, we connect our expertise through TDK United, working cross-functionally across divisions, technologies, and products to share knowledge capital. When you combine these together, you build software capability that solves customer needs. From an employer branding standpoint, Rosa Chao, who you can see at the bottom here, she becomes the story. Rosa was named Woman of the Year at Sensors Converge Conference. She began her software career at InvenSense. Software engineer, progressed to manager, progressed to software executive. She adapted with TDK's sensor system business company, developing not only motion sensors, but also microphones, temperature, pressure, magnetic, creating different and then connecting the technology for more value. She leads teams in Korea, Japan, China, San Jose, and throughout Europe as part of our technical software community. Expertise, adaptation, connection. We have real stories like Rosa's from marketing, from manufacturing, from information technology and HR, and we are building capability and creating that impact from within. This is the employer brand from concept through implementation. TDK is a platform for careers to flourish and to create value, and this is what happens when you align the HR and the business strategy together. Thanks for your time. Andreas? Let me summarize and let me close with what matters most. Rendō aligns every people decision to our corporate strategy. Our engagement is up with a 92% response rate. Our people trust us. Our GMDP successor readiness is beyond target. Our leadership bench is deep. That same pipeline produced real business like TDK SensEI. Our employer brand has increased, and we are actively building AI and software talent that will power TDK's next solutions. We are not only running HR programs, we are building the human foundation of TDK's future. Thank you very much. So that concludes CHRO session. Thank you very much to you both gentlemen. Now we would like to start the CTO session. Hashiyama-san, the CTO, and Jim Tran-san, please come to the podium. I am in charge of CTO. My name is Hashiyama and with Mr. Jim Tran, we would like to give the CTO session, please. As being introduced by two gentlemen, I have spent my entire career at TDK. However, I started as an engineer in our R&D center and subsequently gained a wide range of experience in sales, overseas assignment, leadership of business division, and the corporate strategy HQ before assuming my current role as CTO. Our long-term vision, TDK transformation, embodies two aspirations contributing to the transformation of society and continuing to transform TDK itself, and there are two aspirations. In the pre-financial capital represented by the roots of the Ferrite Tree, we have added software technology. By strengthening software capabilities, including AI, we aim to further enhance corporate value. For this reason, we are focusing on recruiting and developing the software talent that TDK needs to continue its transformation to provide solutions that are uniquely TDK. We need not only software expertise based on a deep understanding of the characteristics of devices such as sensors, but also the ability to connect people and business adaptability to address security and regulatory requirements. TDK's business model is built on diverse talent base, and we differentiate ourselves by combining the capability to envision the future, to bring new technologies to market ahead of others, while choosing the optimal strategic position for each technology and product. That is our TDK business model. For example, in the sensor business, by continuing sensors with edge AI and software, we aim to contribute to the AI ecosystem with higher value-added solutions at the module and system levels. TDK has transformed its business portfolio through M&A over the years. More recently, we have stepped up the acquisition of the complementary technologies in order to provide higher value-added solutions to the AI ecosystem for smart glasses, examples including the acquisition of SoftEye, which has an eye tracking, and the acquisition of assets from OQmented, which has a system technology for smart glass displays. For AI data centers, we have made Linergy Power a subsidiary in order to produce medium-sized batteries in Malaysia, and we are pursuing the acquisition of Fabric8Labs, which owns ECAM technology that is needed to manufacture cold plates. The Fabric8Labs acquisition is expected to close after receiving the regulatory approvals. We will use these newly acquired technologies to further enhance corporate value and provide to the society. Materials development has traditionally, therefore shown here, there are four areas in the AI. On the right-hand side, using the AI, we are going to contribute towards the business execution and that have been already touched upon by many corporations. On the left-hand side, this is AI as a market. That is by AI advancement, the AI ecosystem will expand, and we will have a good opportunity to provide our new technologies. On the right-hand side, the solutions and the products in order to add value to our TDK products and also for the SensEI's and for the growth opportunities. The smart eyeglasses are these areas. For that, we are going to have a detailed explanation by Jim Tran, sir later. On the left-hand side, this is to accelerate R&D using AI, and here, for the new materials development, materials informatics is also becoming increasingly important. In the past, the materials development has traditionally been said to take a long time because the development process relied on the results of experience accumulated through repeated trial and error. Today, by making use of the large amount of data we have accumulated over the years and applying AI, we aim to accelerate development and improve material properties. The use of MI, the materials informatics, and therefore, in order to establish a sustainable material design method, it is important to use the AI. Therefore, we will continue to pursue materials development that is unique to TDK. As physical AI moves into a full-scale adaption, we believe TDK's opportunities within AI ecosystem will become even greater. AI cannot be utilized without data, and the necessary data cannot be obtained without sensing technologies. As shown here, by combining technologies developed through our own R&D with new technologies acquired through M&A and other means, we will continue contributing to infrastructure such as AI data centers while pursuing medium and long-term technology development to maximize our contribution to physical AI through new technologies. I will now hand over to Jim Tran, who will provide a more detailed explanation of our contribution to physical AI and one of the four areas, AI for value enhancement. We are going to invite Mr. Jim Tran, please. Thank you. Good afternoon, everyone. My name is Jim Tran. I am the GM of Americas HQ and the DGM of Tech & IP Headquarters. I have been at TDK for a little more than five years now. Prior to that, I was an engineer. A long time ago, I started as an electrical engineer at Boeing and then at Sony. Then I moved my way up. I was a Vice President of Broadcom, and prior to joining the TDK, I was Senior Vice President at Qualcomm. Today, I will focus on my discussion regarding physical AI. At the end, I will give a quick update on AI data center. Physical AI spans across many markets from robotics, smart glasses, AI edge devices, autonomous vehicles, and drones. As physical AI ramps to a TAM of almost to a trillion JPY, TDK's components and solutions will be a part of this growth. In the next few slides, I will explain how TDK will be part of this ramp. Two years ago, we created a company called TDK SensEI, whose goal was to provide edge AI solutions to improve the efficiencies of factories and warehouses. We started with CBM, or so-called condition-based monitoring, where our edgeRX devices can tell you what went wrong when the machine went down in a factory. This was our first entry into edge AI. Since then, we have now partnered with AWS or Amazon Web Services to add cloud computing capabilities to our solution. This now allows TDK to bring predictive and prescriptive maintenance to the market, enabling our customers to plan ahead before failures happen. Not only will we be able to predict the failure, but we will also be able to prescribe what to do before that failure happens. We expect this market to grow by 35% in the next few years. I want to give a little more color about the market landscape. Many others have tried to deliver solutions in this space, but they focused either only on the cloud or a sensor device with some limited capabilities. Here at TDK, we believe that in order to bring competitive solutions to the market, we need to bring together edge devices that is easy to deploy with multimodal sensing and leverage the compute power of the cloud and provide a total system solution. That's what we're doing. All factories want to maximize the uptime of their machines. This is the goal of our edgeRX and edgeRX Vision solutions. By helping our customers maintain the uptime of their machines, we can help improve the efficiencies of their factories. As you can see in the graph, edgeRX aims to alert the factory management of the potential failures as early as possible to avoid downtime altogether. This will reduce cost, maximize throughput, and provide AI-powered visibility throughout the factory. Next topic I want to touch base is smart glasses. Last year, we announced the acquisition of SoftEye, and formed an AR Platforms Business Division. SoftEye is a provider of low-power eye-tracking technology. Together with other TDK technologies like full-color laser module, MEMS mirror, advanced battery technology, and sensors, we will provide platforms that will enable the smart glasses market. By optimizing these components in the system, our platforms will enable smart glasses that is usable for lasting all-day battery life, lightweight, such that it can be worn comfortably all day, electronics that are small size that allows for fashionable designs. With TDK's direct retinal projection technology, it can be scalable such that the prescription lens no longer need to be dependent on the electronics manufacturing. This market is expected to grow by 35% in the coming years. This technology, we believe, brings a different type of human machine interface, or HMI, to the computing world. It will be a seamless way for humans to interact with AI. With the fusion of the various sensors on the glasses, we will be able to provide contextual awareness for AI to be useful. For example, the AI will be able to use the sensors on the glasses to know where you parked your car. For instance, it will recognize as you step out of the car and close that door, that will trigger the glasses to take a picture of where you parked. Later, as you come out of the shopping mall, you can ask, "Where did I park my car?" It will pull up where you parked. There are many more such examples like this, and I'd like to go through a few of them in the next page. Here are some other examples that you can see that the smart glasses with eye tracking can enable. For instance, you can receive a business card from somebody, and by having that AI trained, it automatically takes a picture of that business card because it knows you just met somebody new and received the business card. You can also navigate while walking or riding a bike and have eye tracking invoke functions on the UI while giving you a truly hands-free experience. I won't go through the rest of the examples, but I think you get the idea. Now, let me draw attention to something exciting coming out of our R&D labs, called SensorGPT. Just for background, every AI application requires data to train the models. 80% of creating an AI application is actually spent in collecting, curating, and labeling the data. This poses a huge challenge to getting AI apps into the marketplace quickly. SensorGPT technology aims to reduce that amount of data that needs to be collected. With just a small sample of data, SensorGPT will augment or synthesize enough data to produce similar accuracy as collecting real data. This will vastly improve the time-to-market for AI applications that require a lot of sensor data. Our goal is to make this scalable to support a wide range of sensors. In addition, we will be sensor-agnostic and provide a user experience that is simple to use as other LLMs in the marketplace. And we see this market growing very rapidly in the coming years. Lastly, I want to showcase a newly acquired technology called ECAM, Electrochemical Additive Manufacturing. We recently announced the acquisition of Fabric8Labs, which has created a 3D printer capable of printing metal, like copper. There are many applications for this type of technology, like thermal management, RF antennas, and passive components. This technology allows for the ultra-fine pitch printing of metals like copper to create unique structures. One of the near-term applications is thermal management in data centers. Power and thermal management are some of the biggest challenges for AI data centers. With this technology, we can print inserts or these cold plates with these micro channels that allows for efficient flow of fluid to promote better heat dissipation. This technology allows TDK to further participate in the growth of the AI data center market. We are awaiting regulatory approvals, and we look forward to giving you update as we get clearance. This is the end of my presentation, and I'd like to hand this back to you, Ito-san. So, this concludes the CTO session. Thank you very much. Now, we would like to start the Q&A session. Please come to the podium. Now, we would like to start the Q&A session. During the Q&A session, we invite Mr. Saito, Mr. Keller, Mr. Hashiyama, Mr. Tran, and also outside director, Nakayama-san, and Mr. Katsumoto. Also Mr. Yamanishi, CFO, Ikushima, and Mr. Brower, and also Hiraoka-san will participate. Those who have questions in this venue, please raise your hand, and those who are participating through the Zoom, please use raise your hand button, and we are going to bring you the microphone, and those who are online, we are going to unmute when we invite you for the question. However, we limit only one question per person. So we would like to invite any questions from the floor, please. In the center, in the front row, please. From Morgan Stanley Securities, Sato. Thank you very much for the explanation. A year ago, during the Investor Day, you mentioned about the battery Amperex Technology Limited. It is a corporate culture and how you are going to deploy to other business or how you are going to align your corporate culture to other businesses. During this fiscal year, Linergy Power acquisition and also Fabric8Labs M&A, therefore they are having a large scale M&A. Therefore, for the Linergy Power, this is the batteries technology. However, this kind of HR strategy, how are you going to transfer these kind of corporate cultures and for the Fabric8Labs? You wait for the authority's approval. However, going forward, how you are going to nurture the HR within the Fabric8Labs and how you are going to utilize within the TDK, therefore, I would like you to explain the progress. Thank you. Thank you very much for the question. First of all, I myself is going to respond. For the batteries business, because we do have a long history, Amperex Technology Limited to that group. This is the electronic components and also the other business company's leadership are trying to learn from that business and therefore from the Amperex Technology Limited members, they are learning from each other. That is under the theme of TDK United from integration to Rendō, and therefore talking about the Linergy Power. Of course, we are going to integrate, and also that has started to work in moving the Rendō. For the batteries business, as we mentioned, Amperex Technology Limited and also the Linergy Power, it is under our TDK group. Therefore, we have started the Rendō activity already. Also for the second question for the Fabric8Labs. Therefore, well, because during the presentation they have mentioned about this company. This company, a few years ago, the corporate venture capital, TDK Ventures, has started investment a few years ago, and from that period, we have been collaborating from that period. Therefore, at the beginning, it was only a collaboration between the electronic components. However, recently we have expanded to other applications with such a huge growth potential, and therefore it is necessary to scale up the business and therefore to that challenge. Well, because we do have a long relationship and therefore as a basis, we have invited that company to participate within the TDK group. However, we are waiting for the approval. Talking about the collaboration, they do have the unique technologies, not only the electronic components. However, they have such a growth potential and therefore not only the technology, the production technology and therefore talking about scaling up. We, TDK, have the electronic components and sensor business and therefore we do have the capability to turn it and transform into the mass production. After the approval, we are going to swiftly move to the TDK United, to the Rendō, and therefore we are going to accelerate the Rendō business. Thank you very much for the question. Now, we would like to move on to the next question. Yes, person on the left-hand side of the stage, please. Thank you. From Bloomberg, my name is [Takashi]. In your presentation, you talked about the smart glasses. You said that you have already launched some products in smart glass market. I was so positively surprised that it was so quick. Could you review with us your growth so far in the smart glass business compared with your initial expectation? Is the trend faster or slower? What is your expectation going forward? Thank you for your question. On this question, Hashiyama-san, could you respond? Yes. Thank you very much for the question. From the demonstration, maybe there was some misunderstanding about the information. Yes, the smart glasses are available in the market today. Earlier, Mr. Saito talked about his own use of smart glasses. How about TDK's? It is not commercially available yet. We are still developing the technology. What we have today is the one with display and one without display. Whether you can get the information from the screen or not, there are two types. What is more promising is the one with the display. What you have experienced in the exhibition is the retina-based laser injection projection type clear image technology, as well as eye tracking to tell whether the user is looking at, and AI can give you the correct information. That kind of technology is almost ready for the commercial launch. That is what you have experienced today in the display. Today, how users are using, there are some use cases we explained, but once smart glasses are available, there are different applications, and users can get the information from AI in different applications. That is why we are expecting a lot from this market. Let me supplement. In the recent years, sensors and our main business segment like sensor business, electronic parts segment, and the battery business. In the recent short term, we have a lot of potential from these, and as Hashiyama said, we have a long-term view as well. From the long-term perspective, there are different types of potentials that we are looking forward to. When it comes to smart glasses, Katsumoto-san, what do you think about smart glasses? Do you have any views on smart glasses? Yes. When I was with Sony, I was involved in something similar to this. For TDK, smart glass for TDK, in my opinion, it is great because you can tell where the eye is looking at. If somebody is looking at something and exactly at what time, you can tell what happened at that time. This is very significant because you can enter information into a computer with the keyboard and so forth, and images. But as soon as you look at something, it is all done. It is a new possibility of inputting information into AI. Your eyesight, and without a lot of consumption of energy or electricity, you can get a lot of information. That is the secret. We have promising opportunities for the short term, medium term, and the long term. Thank you. Thank you very much. We would like to invite other questions, please. In the front row, the right-hand side. From Nomura Securities, Manabu speaking. This is a great opportunity, and therefore I would like to ask Jim Tran. In Qualcomm, you had worked for Qualcomm, and from Qualcomm, the smart glass and the sensors. I think there are great business opportunities for Qualcomm as well. Going forward, the future approach, you do have the processors. Therefore, you do have the relationship with the operating system companies, and therefore you are going to create an ecosystem, for example, thinking about the cloud connection in the future. That is the opportunity. However, for TDK's smart glass approach, what are the differences? What are the advantages for TDK? I am sure there are some challenges for TDK. Of course, you are going to have a different approach. Therefore, TDK's unique approach. Could you elaborate on this point, please? Okay. I think the question was elaborate on TDK's unique approach to smart glasses versus what I was doing at Qualcomm. Yes, I spent many years at Qualcomm. Previously, I was the GM of Qualcomm Snapdragon, so I know very well. One of the things that if you look at other companies, Qualcomm and others, they come from mobile phone, and mobile phone has a different power profile. That is their mindset. At TDK, we are coming from a different angle from optimizing the components. But it requires both a total system from components to even the host processor. If you looked at the company we acquired, SoftEye, the reason that we acquired it, there are many different eye tracking companies in the world, but this one is ultra low power. The ability to focus your eye on an object and to do it with really low power is the key. Because I think I outlined there's four things that will drive the consumer market to adopt smart glasses. One, all-day battery life. If your glasses only last for 30 minutes, no one will use it, right? In the old days, the smartwatch didn't last very long until it lasted for one day, then people started using it. Second, it has to be very comfortable. You can put a giant battery to make it last all day, but it would be so heavy that you cannot wear it comfortably for more than 10 minutes. The other thing is it has to be fashionable. The electronics must be so small and light that it allows the glasses to be like a regular pair of glasses so it's fashionable. Because the first thing you see on a person is what's on their face. If it's ugly, then nobody will wear it. Lastly, which is really key that separates TDK from other companies attempting to do this, is our direct retinal projection technology. Saito-san has experienced it with his glasses, and many of you who have tried the glasses today. The majority of glasses today are dominated by a projection technology called waveguide. The image is projected into the waveguide. The waveguide is laminated onto your lens. Every one of us has a different prescription. I wear glasses for reading, but nothing for far sight. Everyone's different. That imposes another step in the manufacturing of just regular glasses. Somebody has to put the waveguide on. This prevents the scalability. By using direct retinal projection, we don't have to worry about your prescription or his prescription, or her prescription. We avoid that. This is TDK's advantage. Suppose that such advantage from Qualcomm perspective, would Qualcomm look at TDK as a competitor or a collaborator? I think collaborator. Qualcomm is focused on the host processor. We are focused on eye tracking with the camera, and we also focused on the most efficient display. Together we have to collaborate to make a truly optimized system. Great. Thank you very much for the question. We would like to invite other questions, please. Thank you very much for this opportunity. From Okasan Securities, Mika Nishimura speaking. Today, you mentioned about the device-based solution, and also you have mentioned about some of the options. For example, the batteries and also the heat management, and therefore our strong TDK's technologies, and therefore in the AI arena, what kind of solutions are you going to envision in the future? Because that is going to contribute to the business expansion and based on that. Therefore, because starting from the multiple devices, or are you going to focus on your strong areas while focusing on individual devices, or are you going to focus on the strengths of software? How are you going to create your competitive edge through your technologies? Hashiyama-san, please. Thank you very much for the question. Talking about the sensor, I'd like to utilize the example from the sensors. Because as being presented today, global manufacturing, this kind of preventive management, for example, equipment and the pumps, and they're going to detect the abnormality in order to communicate, it is necessary to have maintenance. This kind of predictive management has been conducted based on the noise or the temperatures. However, if there are different pumps in the different areas of the factory, they're going to detect the abnormal signals in different areas. Therefore, the AI can provide the intelligence to the user, and therefore, they're able to have this predictive maintenance approach to the users. Therefore, we are going to have a multiple device, and therefore, we are going to use this intelligence in order to provide this kind of comfortable predictive maintenance to the users. I would like to add one point. Because TDK has a strong lineup of the sensors, and therefore, we do have the hardware portfolio. As Hashiyama-san have mentioned, we are going to combine edge. That is being called as a software. This is an edge. Therefore, because sub-part will be processed through edge, and therefore, that is going to contribute to the low energy usage. As you may know, this edge AI, not only for the sense solutions, therefore, we are thinking about the AI ecosystem, including the data center. However, the challenge is the energy usage or the power usage. Therefore, because we are not, we are going to contribute to this opportunity in order to reduce the usage of the powers. Therefore, as being presented, this will be a great potential and business opportunity for us. Are there any other questions? Yes, person on the left-hand side, please. Thank you. [Higashiura] from Nikkei. I have a question to Mr. Saito and to external directors. This is the second briefing session on pre-financial capital. In facing investors in forums like this, what is the significance of having your IR activities in such fora? Can I say external directors first? I started with Katsumoto-san, so is it okay to ask Nakayama-san to respond? Yes. Thank you very much for the question. Well, today is the day of complexity. Dialogue is more important than anything. Well, it can be with analysts and journalists or, because I am the head of the nomination committee, I also have opportunities to promote dialogue with the other board members and so forth. We are external directors, so we have to ask about what is happening internally, and also to communicate with investors and analysts. Just listening to your questions would give us a lot of opportunities to understand your interest, and those are very useful for our long-term strategy. Thank you very much. Thank you. Yes, in my case, in the board meetings and in different occasions, we have opportunities to talk to different members of the company and learning about the company, so that I can be of use in the board member discussions. TDK itself f rom external people, like investors, what are they interested in about TDK? What can be issues that they're concerned about? When we talk about these issues and so forth, then external directors can learn more, and we can contribute more to the discussions with the internal members by making useful suggestions. The more opportunities like this, then that is beneficial for the external members because we want the company to contribute to society. This is a great opportunity. I myself, my background is engineering and technology. Therefore, for the internal sessions, we learn a lot about the internal technologies. Today, you asked about technologies as well, but we want to understand what kind of new technologies, products, and solutions people outside are interested and would like to learn about from TDK. That is a very important information for us. That's why we like to get more opportunities like this so that we can give useful feedback and proposals to TDK. From myself, since the assumption of the office, I kept saying that the people is the most important thing. That's the comment that I've been making all that way. As we do so, we have pre-financial capital and a non-financial capital. Regarding financial capital, well, every quarter we are holding investor briefing sessions to talk about the financial results for each quarter. This financial capital is made or driven by what and by whom? That's the most important question, not only for our company, but also others as well. That is a pre-financial capital, I would say. Of course, not just internal members, but important stakeholders, like investors, should know about these status. That's why we are providing these opportunities. By having Q&A sessions like this, we can also get valuable input from investors, so that for the most important fundamental aspect, pre-financial capital, especially human capital, we can get better ideas about what you expect. Last year, for the first time, we held this briefing session for pre-financial capital, although we are saying that we are a company of the people, but this is just the second time. We are willing to continue with these sessions with you investors. Last year, from external directors, they suggested that we should focus more on software talent, and we quite agreed with them. The board culture, we have a very open communication among the board members, internal and external. Through these discussions, we reemphasized the importance of software talent and technology talent. That's why this year we are explaining about those talent and talent management. From integration to Rendō, we are shifting. We would like to continue with these sessions going forward. Thank you. Thank you very much for the question. We would like to invite another question there. From Mizuho Securities, Goto speaking. Talking about the human capital value creation and therefore, or because internal communication and also the leader nurturing programs are being implemented, I do have that understanding. However, in order to make those initiatives more significant, are you thinking about additional follow-up programs or any trainings that you have in your mind? Of course, other companies do have these kind of structures, and therefore, if you could mention a TDK unique initiative. Also talking about the pre-financial capital in order to relate that to the financial capital, you mentioned that you are going to introduce some kind of KPI. However, I think it is very difficult to quantitatively monitor that. How are you going to approach that? Mr. Keller, please. Thank you for your question. Well, first of all, it is also linked to the very first question we received regarding the culture of TDK and learning from each other like ATL. Actually, another member of the HR leadership team is the former head of HR of ATL, Angela Yuan, who presented together with me last year. Actually, we have an internal project launching regarding a TDK Global Academy, where we also learn from internally because ATL has such kind of academy already where we are actually institutionalizing such kind of programs related to AI as well, but also regarding manufacturing and other activities to actually make sure that we share best practice and that we can accelerate the learning and the education of our diverse members around the world. This is the first answer. The second is, yes, it is not easy to measure, but as explained earlier, we are looking very much also at the communication score as part of our team member engagement survey, which is done yearly. We put very much emphasis on this communication score because we believe that this communication or focusing on communication removes barriers to execution to find new solutions, more innovation, but also to improve recognition. This is the reason behind, and by doing so, we believe we are able to also customize the different activities to accelerate the streamlining of the organization, get more efficient, but also increase the speed of innovation and agility. May I add? As Mr. Keller had responded, I fully agree with his answer. However, if you focus on this engagement score, there is a communication score, and therefore, because that have been already disclosed to outside, improving those scores, of course, that is important. However, on the other hand, internally, not only the HR people, however, with the team members, we focus on another point is the comments being provided by the employees. Number of 50,000. 50,000. That is it. 50,000 comments and therefore, because behind those figures, those comments behind this score are important and therefore, because not only myself, however, when I visit all these sites, I communicate with the local people. Behind those figures, there are lots of comments and therefore, because maybe we cannot listen and respond to all the comments, however, we are going to think and how we are able to implement those comments, and therefore these kind of activities are important. We are using internally also AI actually to analyze all those more than 50,000 comments because manually it is impossible to do, and this helps us to put also the right focus. Actually within a few days, we are able to distribute all the team member engagement results and the comments in a very speedy way. For example, we do conduct a town hall meeting, and therefore we invite the outside directors as well. Therefore, we do have these kind of participation. Nakayama-san, you have joined this town hall meeting as well. Yes. As Mizuho Securities person have mentioned, all the companies have already implemented and created the structure. Because I had worked in this automobile company for 20 years, they have that kind of structure. However, as you have mentioned, those are the treasure books. Because with using AIs, we are able to analyze those comments and therefore how we are going to respond to those comments are so important. As Saito-san have mentioned, as a bold culture, we are trying to engage with outside. For example, we make a business trip to the factories, and this year we are going to visit our headquarter and therefore with the employees, we do have the opportunity to discuss with the employees. Therefore, having that kind of opportunity, we look whether they are enjoying the working, and this is very analog information. However, whether those comments have been implemented and therefore that is going to relate to a big evidence. Because if some people are so tired of work, what kind of measures or countermeasures we can implement because I'm working as an outside director and therefore I'm in the nomination committee and therefore that was a joke. However, having said that, talking about the pipeline, therefore, from the bottom up, therefore we need to focus on the younger generation or younger employees, whether they're enjoying their workplace. Nakayama-san, Katsumoto-san, thank you very much for joining the town hall meeting. Thank you very much. Are there any other questions? Yes, person in the middle row. Please. Thank you very much. From Sumitomo Mitsui Trust Asset Management, my name is Sawashima. I want to ask Hashiyama-san one question, CTO. In the recent 3 years, you have done a lot of M&As and to get the technologies, acquire technologies, you've been very successful in M&A. But how about IP, intellectual properties? What is making it so successful? Probably TDK Ventures is doing something behind. What are the secrets of success? Going forward, how is it changing going forward? Sorry for the many questions, but for human capital, you showed us per person OPM, ROIC of human capital, so you have those important KPIs. But when it comes to R&D, what is the effectiveness that you are measuring in terms of the effectiveness of investment? Yes, thank you very much for your question. Technological development in this area, one of the last slides I used showed you the ability to envision the future and execution capability to realize that. We have to nurture those two. On the left-hand side is the ability to conceive of the future. Then we need a lot of different and diverse talent to do this. Also TDK Ventures that we mentioned. Only with the existing technology, there are certain markets that we cannot access, but we have done a lot in order to address this issue. There is AI, which is evolving. How can we approach the AI ecosystem? We thought about different ways. Between the existing technologies and the new technologies, by having new technologies as well, we can create new values. Based on those assumptions, we conducted those acquisitions. Still, we are waiting for the approval of the authorities, as we said in the presentation. That technology is a mechanical parts technology, so it is a different technology from what we have at TDK, but there is a great level of affinity, technologically speaking. For example, power consumption is a big issue, as he said, so there is something relevant. GPU, how can we achieve the cooling of a GPU so that we can utilize the power effectively? We can utilize this technology. That is why we acquired this company with the mechanical parts technology. So diversity and the diverse approach we conceive of the possible future and try to realize each element of this future vision. How about the external perspective? Do you have any comment? Well, that is a tough question. Well, in terms of the presentation we made today, as an external director, what I am looking at is, for example, Fabric8, we are waiting for the approval of the authorities, but we are welcoming this technology. Immediately, they introduce these opportunities to us, and we can also talk to the top management. That was the case at the time of SensEI and AR glass. Immediately they come to us, so there is equality among different functionalities in our company. That is why they talk to us in such a frank manner. TDK, we have a capability to discern what is the quality technology going forward. But Rendō speed, I think is quite fast at TDK to involve different types of people in projects like this. There was this first question today. What is the benefits of ATL? We are trying to learn from each other because in the past we were just trying to integrate. That was all. By putting those pieces together. But today we are trying to do Rendō. For example, in order to make an AR glass in such a small diameter, how much capacity can we get? When we think about that, ATL battery can help us a lot. How can we utilize that? Immediately, AR glass company discussion started. That is the flexibility and the strength of TDK. As Mr. Hashiyama said, we conceive of the possible future and try to execute. As we do that, we are using Rendō and equal spirit between different functions. For the last one or two years, this kind of spirit is being strengthened, I think. I have been in R&D for many years myself. So what is of a high quality, we have to nurture by ourselves, and also we have to acquire from outside. Then with Rendō, we can execute faster. That would be an important KPI. Probably the members who are on the panel today, if you look at us, you can tell there is a great level of diversity. With multiple eyes, we are making judgment at TDK. I think that is very significant. Thank you very much for the questions. We are running out of time, so the next question will be the last question for today. If you have any questions through Zoom, please use the Raise Your Hand button. No questions? Now we would like to conclude the Q&A session. Lastly, we are going to invite Mr. Saito for the closing remark. Thank you very much for your participation despite your busy schedule. During the earnings announcement in April, we have given the explanation. However, we are going to strengthen our pre-financial capital further, transforming TDK's value creation chain, our value creation cycle, with greater speed and efficiency. That's our resolve. Finally, during the presentation and during the Q&A, we have mentioned several times the word "Rendō," alignment. We have chosen Rendō as the theme of this year's TDK United report. Therefore, we will transform TDK United from integration to Rendō, that is alignment. As shown here, Rendō encompasses many forms of alignment. Therefore, we would like to accelerate further this kind of constructive dialogue and collaboration with all the shareholders, investors, and analysts, and therefore, we would like to work together. Rendō, and we have received many insights and advice today, and therefore, we would like to link them to our actions to Rendō in order to further enhance our corporate value. We appreciate your continued support. Thank you so much for your time today. Thank you very much. This concludes TDK Investor Day 2026. Thank you very much for your collaboration and participation. Thank you so much.