We would like to start the performance briefing of TDK Corporation for the first half of fiscal year ending March 2026. Thank you for your participation despite your busy schedules. First, let me introduce the participants. President and CEO Noboru Saito, Senior Executive Vice President and CFO Tetsuji Yamanishi, Executive Vice President Shigeki Sato, Corporate Officer Fumio Sashida, Corporate Officer Takao Tsutsui. Those are the participants for today's meeting. We will explain the results for the first half for fiscal year ending March 2026, as well as the outlook for the full year, to be followed by a Q&A session. Overall, this will be a 75-minute meeting. The slide decks we are using today will be posted on our website on a later day, both in Japanese and English. Now, let's start. This is Yamanishi speaking. Thank you very much for taking the time to join TDK's performance briefing for the first half of fiscal year ending March 2026. Let me begin with an overview of our consolidated results. First, key points of the first half results, starting with an overview of the market environment. In the electronics market, which has a significant impact on our business, ICT-related production remained steady year-on-year. Demand for nearline HDDs for data centers also stayed firm. And in the industrial equipment market, demand related to renewable energy remained solid. On the other hand, demand for BEVs continued to stagnate, resulting in component demand that fell short of our initial expectations. Under these circumstances, the three business segments, namely sensor application, magnetic application, and energy application products, benefited from solid demand in the ICT and industrial equipment markets, as well as tariff-related front-loaded demands. As a result, net sales increased 8.6%, and operating profit rose 10.7% year-on-year, both marking record highs for a first- half period. By market segment, sales of small-capacity batteries and sensors to the ICT market increased, and demand in the HDD market far exceeded last year's level, driving a sharp rise in HDD suspension assembly sales. Meanwhile, sales of passive components to the automotive market declined due to slower BEV sales. In the industrial equipment market, sales of small-capacity batteries, passive components, and sensors all increased. Next, I will explain the first- half results in more detail, including the impact of foreign exchange fluctuations, which reduced net sales by JPY 41.7 billion and operating profit by JPY 9.2 billion. Net sales totaled JPY 1. 1834 trillion, up JPY 93.9 billion or 8.6% year-on-year. Operating profit was JPY 147.6 billion, up JPY 14.3 billion or 10.7%, and profit before tax increased 7.4% to JPY 147.5 billion. Net profit attributable to owners of parent rose 5.4% to JPY 111.4 billion. As a result, we achieved record highs in net sales and all profit items for the first half. Earnings per share were JPY 58.7. As for Forex sensitivity, a JPY-1 change in the JPY/USD exchange rate has an annual impact of roughly JPY 2 billion on operating profit, and a JPY-1 change against the euro has an impact of about JPY 0.3 billion. Next, let me explain the results for each segment. Starting with passive components. Although sales to the industrial equipment market increased, sales to the automotive market declined. Net sales totaled JPY 285.7 billion, up 0.2% year-on-year, while operating profit decreased 48.8% to JPY 14.8 billion, including JPY 2.7 billion in restructuring costs. Ceramic capacitors, which have a high sales ratio to the automotive market, saw both sales and profit decline. Sales of aluminum electrolytic capacitors and film capacitors to the automotive market decreased, but demand for renewable energy applications remained solid. However, due to restructuring costs of JPY 2.7 billion booked as part of the portfolio management efforts, profit declined. Inductive devices posted higher sales but lower profit, as increased demand for the ICT market was offset by weaker sales to the automotive market. High-frequency components recorded lower sales and profit due to reduced sales to the ICT and industrial equipment markets. For piezoelectric material products and circuit protection components, sales increased thanks to steady demand from the industrial equipment market, but profit fell because of lower sales to the automotive market. Turning to sensor application products, net sales increased 13.8% year-on-year to JPY 107.9 billion, and operating profit rose sharply to JPY 12.1 billion, a significant improvement from the previous year. In temperature and pressure sensors, overall sales were flat, but profit declined due to weaker sales to the home appliances market. In magnetic sensors, sales of Hall sensors to the automotive market decreased, but the TMR sensor sales increased with the smartphone production being in the peak season. Overall, magnetic sensors achieved higher sales, and the profit was roughly flat, partly due to the stronger JPY. For MEMS sensors, sales of microphones to the ICT market and motion sensors to the industrial equipment market increased. As a result, MEMS sensors as a whole returned to profitability. Next, magnetic application products. Net sales were JPY 115.8 billion, up 4.3% year-on-year, and operating profit surged to JPY 11.9 billion, reflecting a sharp improvement in profitability. Sales of HDD heads and HDD suspension assemblies rose significantly thanks to robust demand in the HDD market, particularly for nearline applications. Although magnet sales to the automotive market declined, profitability improved through quality enhancements and cost reductions. Next, energy application products. Net sales were JPY 648.1 billion, up 13.3%. Operating profit was JPY 137.7 billion, up 11.6%. Rechargeable battery sales volume grew in small-capacity batteries for smartphones with the effect of new models, and spot orders contributed to sales and a significant profit increase. Sales of medium-capacity batteries also grew in the industrial equipment market. Sales and profit of power supplies for industrial equipment decreased due to the lack of meaningful recovery in demand. Next, the results of the second quarter, including exchange rates, had a negative impact on sales of about JPY 4.1 billion and operating profit JPY 2.1 billion. Net sales were JPY 647.6 billion, an increase by JPY 76.9 billion or 13.5% year-on-year. Operating profit was JPY 91.2 billion, up JPY 15.8 billion or 20.9% year-on-year. Profit before tax was JPY 89.8 billion, up JPY 22.1 billion or 32.6% year-on-year. Net profit was JPY 69.9 billion, a significant increase by JPY 23.9 billion or 51.8% year-on-year on a quarterly basis. Net sales and all levels of profit reached record highs. Earnings per share were JPY 36.86. Next, segment sales and factors of changes in operating profit from the first quarter to the second quarter. The passive component segment net sales increased by JPY 9.4 billion or 6.8% from Q1. Operating profit increased by JPY 5.7 billion, excluding a one-time expense of JPY 3.7 billion incurred in Q2. Ceramic capacitors sustained temporary production suspension due to flooding in Akita in August, a loss of about JPY 1 billion. However, increased sales to the automotive market drove higher sales and profit. Aluminum electrolytic capacitors and film capacitors sales increased to the automotive and industrial equipment markets. Business portfolio management-related structural reform costs of JPY 2.7 billion were recorded to improve future profitability and efficiency. This resulted in a slight loss, but in substance, profit increased. Inductor sales increased to the automotive and industrial equipment markets, along with sales to the ICT market, partly with seasonality leading to increased net sales and profit. High-frequency devices sales increased to the ICT market due to seasonal factors. Piezoelectric and circuit protection component sales increased to the industrial equipment market. Net sales increased. Operating profit increased with higher sales despite one-time expenses of JPY 3.7 billion. Sensor application products sales increased significantly by JPY 15.1 billion or 32.5% Q- on- Q, and operating profit increased by JPY 6.7 billion. Temperature and pressure sensors posted increased sales and profits due to higher sales to the automotive and industrial equipment markets. For magnetic sensors, Hall sensors, and TMR sensors, sales increased with seasonality in the ICT market, achieving a significant increase in profit. MEMS sensor sales increased due to strong MEMS microphone sales. Profitability also significantly improved, achieving break-even in the first half. Sales and profit of MEMS motion sensors also increased for Chinese smartphones and game consoles. Overall, MEMS sensors turned profitable in the second quarter and secured profit for the first half. The magnetic application product segment sales were up JPY 6.6 billion or 12.2% QoQ, while operating profit decreased slightly by JPY 700 million. HDD heads volume increased approximately 14%, mainly in new nearline head products. This volume growth, combined with a favorable product mix, led to an increase in sales and profit. Suspensions volume also increased by about 4% due to rising demand for nearline production, achieving higher sales and profit. Magnet sales remained flat. Profit decreased due to JPY 1 billion of gains from the sale of a welfare facility in Q1. Overall, magnetic application products posted a slight decrease in profit. Next, energy application product segment sales increased by 27% or JPY 77.1 billion QoQ. Operating profit was up significantly by JPY 26.9 billion or 48.6%. For rechargeable batteries, sales of small-capacity batteries for the ICT market grew due to seasonality, better product mix with higher new models percentage, and spot orders leading to substantial sales and profit growth. Power supplies for industrial equipment sales and profit increased with a moderate recovery in demand. EV power supplies continued to post loss due to reduced BEV demand. Next, let me elaborate on the fiscal year March 2026 projections. Next, let me explain the factors behind the JPY 14.3 billion increase in operating profit. The main positive driver was higher sales volume of rechargeable batteries, HDD heads and suspensions and sensors, which added about JPY 64.3 billion. Additional gains came from cost reductions of about JPY 7.2 billion and benefits from restructuring costs of JPY 3.4 billion. On the other hand, price pressure had a negative impact of roughly JPY 27.2 billion, and SG&A expenses rose by JPY 20.6 billion, mainly due to higher R&D spending on rechargeable batteries. We also saw a JPY 3.6 billion decline from one-time gains recorded last year, and the JPY's appreciation reduced profit by JPY 9.2 billion. Even so, the overall effect of higher sales outweighed these negatives, resulting in a JPY- 14.3 billion increase in operating profit. Turning to cash flows, operating cash flow for the first half was JPY 189.4 billion, while investment cash flow totaled JPY 128.3 billion, including the acquisition of companies related to the AI ecosystem. As a result, free cash flow reached JPY 61.1 billion, exceeding our initial projection for the first half. That concludes my explanation. Thank you. Good afternoon. This is Saito speaking. Thank you very much for joining us today. I would like to share TDK's full-year outlook for the fiscal year ending March 2026. First, let me go over the key assumptions behind our forecast, particularly the revised production outlooks for major devices. In the automotive market, overall production volume has been revised upward from the April assumption. However, xEV projection was revised downward due to a lower BEV production volume. Next, for the ICT market, smartphone production has been revised down to 1.191 billion units from the April number of 1.2 billion units. As for the HDD market, demand remains firm, particularly for nearline HDDs used in data centers. So we have revised the forecast upward to 67 million units compared with the projection as of April this year. Next, let me touch upon the outlook for the third quarter based on the same exchange rates for the easier comparison, although we have updated our assumption from JPY 140-JPY 145 per USD for the second half. First, for passive components, sales to the automotive market are expected to increase, while those to the industrial equipment market are likely to decrease, resulting in a decline of 0-3% QoQ. In sensor application products, temperature and pressure sensors for automotives are projected to grow, but magnetic and MEMS sensors for smartphones are expected to decline after the seasonal peak and the front-loaded demand, leading to a decline of 10%-13% QoQ. Next, for magnetic application products, sales of HDD heads and suspensions are expected to increase by 3%-15% respectively due partly to capacity expansion, leading to an increase of 9%-12% QoQ. Lastly, energy application products are likely to decline by 3%-6%, with small-capacity batteries for smartphones declining due to seasonal factors as well as the tariff-related strong demand during the second quarter. Next, let me elaborate on the fiscal year March 2026 projections. The impact of the U.S. tariff measures is considered to be limited to the fiscal March 2026 projections. Therefore, we provide projections based on the base scenario only rather than both the base and the risk scenarios. As I explained earlier, in the electronics market in the first half, while demand in the automotive market remained sluggish, production in the ICT market, such as smartphones and HDDs, increased year-on-year and remains robust. The performance for the first half exceeded the levels anticipated at the time of the April 28th announcement. In the ICT market, with new model launches and demand brought forward due to tariff measures, sales of rechargeable batteries and sensors expanded. Furthermore, demand for data centers continued to be robust, and the sales of HDD suspensions were healthy. Based on these factors, we have revised our full-year projections upward from what we announced on April 28th, projecting net sales of JPY 2.37 trillion, operating profit JPY 245 billion, and net profit JPY 180 billion. The exchange rate assumption for the second half has been changed to JPY 145/USD. To promote business portfolio management and address the businesses that are facing challenges, we plan to record approximately JPY 5 billion of additional one-time expenses, including restructuring costs from the initial forecast, bringing the total for the full year to be JPY 10 billion. Regarding the dividend per share, we plan to increase the annual dividend from the initially announced JPY 30 to an interim dividend of JPY 16 and a year-end dividend of JPY 16 to a total of JPY 32. Finally, I have one announcement. We will hold the TDK Investor Day on November the 28th. We will present the roadmap to achieve our long-term vision, the progress of our midterm management plan, and the portfolio management. Four outside directors will also take the stage to engage directly with investors on topics such as governance effectiveness. The event will be held as a hybrid format, an on-site venue with a live stream. We sincerely look forward to your participation. This concludes my presentation. Thank you.