It's time to start. We'd like to begin Advantest's briefing on its new midterm management plan. We thank you for taking the time out of your busy schedule to join us today. I'd like to present our presenters. First, our Representative Director, President and CEO, Yoshiaki Yoshida. It's nice to be here. Next, our Director and Managing Executive Officer and CFO, Atsushi Fujita. It's nice to be here. I'm from corporate planning, and my name is Yasuo Mih ashi. I will be the moderator today. You can find today's presentation deck on TDnet, as well as our website. If you are joining us today via telephone, we ask that you download the presentation materials. Prior to the briefing, I have one point to note, namely that this briefing will include some forward-looking statements, all of which are subject to risks and uncertainties. Please be aware that actual results may deviate from such statements. Without further ado, I'd like to give the floor to Mr. Yoshida. My name is Yoshiaki Yoshida. Thank you for taking the time to join us today. We disclosed the outline of our new Mid-term Management Plan, that is our Second Mid-term Management Plan, last Friday. Today, I would like to share more details of the plan based on the agenda you see here and briefly discuss our medium to long-term aims. Firstly, let's take a look back at our First Mid-term Management Plan. We defined what we want to be and what we should do in our Grand Design mid to long-term management plan, which was announced in April 2018. In addition, our first three-year midterm plan, which covered fiscal years 2018 through fiscal 2020 and which we abbreviated as MTP1, was formulated at the same time as the Grand Design to further its goals, and we have made efforts for the past three years to achieve our MTP1 targets. These are the key management metrics and results of MTP1. We set ambitious targets compared to our results for 2015 to 2017. Our results greatly exceeded our targets across all metrics. These three years have seen great and unexpected changes, such as the U.S.-China trade conflict and COVID-19. I am proud to say that Advantest has responded swiftly and surely to these changes, including by expanding production capacity and bolstering our local support capabilities in a timely manner to meet strong demand. Two main factors contributed to the achievement of our MTP1 targets. Firstly, as the semiconductor tester market expanded, we steadily increased our market share in the semiconductor tester business and achieved sales growth in excess of market growth. Shares in the tester market may fluctuate considerably on a calendar year basis, depending on the investment trends of major semiconductor manufacturers, but we were nevertheless able to increase our share by a meaningful 14 points on average between the three years of MTP1. For the past three years, SoC testers have been buoyed by active growth in test demand for various semiconductors in various regions, mainly related to 4G and 5G smartphones. Against this backdrop, we were able to greatly expand our market share by expanding our customer base and enriching our range of solutions to meet diverse needs. In the memory sector, we were able to maintain the high market share that we had held for many years by leveraging our broad customer base and the diversity of our solutions. The second factor that contributed to achieving our MTP1 targets is our efforts to expand our business domains. In line with our Grand Design vision, we have made two acquisitions and one capital and business alliance over the past three years. Among these, the two SLT businesses we acquired contributed significantly to Advantest results, thanks to the growing demand for higher-performance semiconductors. Under MTP1, we set a target of JPY 100 billion for strategic investment. We only spent about half of this amount, but the benefits exceeded our expectations. Additionally, we utilized EMS manufacturing to respond to higher production requirements resulting from demand expansion and thus did not need to make large CapEx outlays. As a result, our cash on hand increased. Please turn to page eight. I would also like to touch on how we have stepped up our non-financial initiatives over the last three years. To achieve our Grand Design, we have broadly revised the Advantest Way, which guides our business activities to focus on fostering a corporate culture and human resources development for global operations, and have endeavored to create an organization that helps our employees worldwide work toward the same goals. In terms of ESG, we have increased the gender and national diversity of our board of directors, increased the national diversity of our executive officers, and undertaken initiatives such as supporting the TCFD, participating in the Global Compact, and reforming our work styles. As of 2019, we began issuing an integrated report to enhance our information disclosure. These efforts helped us to maintain the quality of our business globally by keeping up with the rapid expansion of product demand and enhancing our support capacity, even amidst the drastic changes in our environment brought about by the response to COVID-19. We believe that they thus supported the achievement of our MTP1 targets. I'll now move on to our external environment. Please turn to page 10. Three years ago, when formulating our Grand Design, we examined socioeconomic megatrends and their potential impact on our business and considered mid- to long-term strategies based on them. Since then, these megatrends have developed more or less as expected overall. Major unexpected changes, such as sharpening friction between the United States and China and the impact of the global COVID-19 response have also occurred, causing uncertainty to increase and risks to diversify. We have also seen movements such as the reaction against globalism and the push for stakeholder capitalism, which call for a re-examination of values previously thought to be unquestionable. As I discussed on the previous page, the digital revolution is expected to progress further in the next 10 years in terms of technology and business, and consequently, semiconductors will have larger and more diverse roles to play. Regarding social conditions, it is expected that changes in society, the structure of industry, and individual lifestyles will accelerate. Geopolitical risks and other uncertainties will increase. How we put ESG into practice will also become more important. Based on these predictions, we believe it is necessary to work on responsiveness to risks and opportunities, as well as on enhancing our ESG initiatives while adhering to our existing growth strategy within the framework of our Grand Design. Our corporate purpose and mission is to enable leading-edge technologies. We have continued our business in keeping with this mission of refining advanced technologies and contributing to the development of our customers and society in general for the past 30 years. Far from being dated, this mission, which is central to Advantest's identity, will only become more and more important in the future. Our purpose and mission underpin our resolve to contribute to the development of the semiconductor industry and the sustainable development of society through our business activities and to meet the expectations of all our stakeholders. Our Grand Design vision statement remains unchanged. In order to continue adding value for our customers in the evolving semiconductor value chain, we will continue to seek to expand our business domains, including through M&A activity. Our Grand Design also sets out what we want to be and what we should do. We will adhere to our commitments and strategies in keeping with our external environment forecasts. In order to respond to the growing mindfulness of ESG worldwide, we will also further enhance our ESG initiatives, such as our response to climate change. This has been added as a fifth strategy of our Grand Design to underline the importance of contributing to humanity's sustainable future through our business activities. Please turn to page 14. I'll now discuss our business environment as background to our sales target. Due to the recent shortage of semiconductors, many have come to understand that semiconductors are indispensable for improving convenience and solving problems. In the future, as the digital transformation progresses, M2M, meaning machine-to-machine data traffic, will increase significantly, and the semiconductor market will grow further over the medium to long term as technological evolution further improves the performance of individual semiconductors. At the same time, the energy efficiency of semiconductors will be improved in response to social demands for smaller environmental footprints. It can be said that contributing to semiconductor innovation contributes not only to the semiconductor market, but also to the creation of a better world. How will the role of semiconductor testers change as the semiconductor market continues to grow? As semiconductors increasingly take on the role of social infrastructure, semiconductor production volumes will continue to increase. The technological evolution of semiconductors happening in parallel will generate increasing complexity that drives needs for more testing and stronger quality assurance. These two factors will multiply the demand for semiconductor testing. In addition, customers seeking stable volume production of high-performance semiconductors are finding time to market and time to quality even more important. As the difficulty of designing and manufacturing semiconductors increases at an accelerating rate, the progress of actually passing electricity through devices to verify and correct their performance and reliability on the spot, in other words, the role of the tester, is becoming more and more important. I'll now summarize the trends I just mentioned in the context of the tester market. In the past, the demand for semiconductor testers has been influenced by trends in the market for final products such as PCs. In the years when semiconductor production and technology progressed, demand grew, and in other years, efficiency would improve and tester demand would fall. This was a cyclical market. Since 2017, when the spread of applications using semiconductors, the shift to semiconductors as social infrastructure, and the digital transformation all began to take off, the market has turned into a cyclical growth market where demand fluctuates and grows. In the future, semiconductors will be increasingly required by society, and the development of further infrastructure will drive the market. In addition, the technological evolution of semiconductors will continue in the future. Demand will continue to rise and fall due to improvements in test efficiency, et cetera. Due to the increasing difficulty of technology, this impact is likely to be smaller than in the past. Overall, the semiconductor tester market is expected to grow more stably in the future. This slide shows how semiconductors are to evolve and how this will lead to opportunities for Advantest. Firstly, semiconductors are becoming more highly integrated. In the future, in addition to node shrinks, there will be an increasing number of cases where circuit integration will be increased by using advanced packages and heterogeneous integration. This adds to the complexity of semiconductors. As a result, we expect an increase in demand for testers in conjunction with the addition of new test processes. The ability to accurately measure electricity is essential for improving energy efficiency and speeding up data transmission. Existing test equipment will be replaced or upgraded for new tests. The third item, introduction of integrated systems controlling semiconductor performance and quality, is a new concept. We have built a cloud environment for this called Advantest Cloud Solutions. In addition to capturing system-level test demand, we will introduce quality control across the fragmented manufacturing process of semiconductors to see if it will be possible to shorten time to market. We will continue to work on the development of innovative solutions combining hardware and software while exploring solutions with our customers. As I have noted, the semiconductor market, which is the source of our growth, is expected to grow sustainably. In addition, as the role of semiconductor testing is set to expand, we expect this favorable environment will continue for the time being. These expectations are factored into our second three-year Mid-term Management Plan, which covers the fiscal years 2021 through 2023. We're referring to this as MTP2 for short. We formulated this in order to further secure our path toward achieving our Grand Design goals, and this plan starts this year. Under MTP2, we target average sales of JPY 350 billion-JPY 380 billion over the three years of the plan. Regarding market share, we have already exceeded our long-term target of 47%, so we aim for 50% or more in the future. Regarding our Grand Design goals, we had targeted sales of JPY 300 billion under MTP1's conservative scenario, but we already achieved that in fiscal 2020. We now intend to reach for the JPY 400 billion in sales under our base plan in fiscal 2027 or earlier. I'll now move on to an explanation of MTP2. I'll first provide an outline of MTP2. MTP2 aims for a further leap toward achieving the final goal of our Grand Design. Following the success of our previous midterm management plan, we will work to expand our core business and grow businesses in new areas. To that end, we aim to maintain aggressive growth investments and at the same time to seek further capital efficiency. We will also enhance our ESG initiatives, seeking to improve corporate value and strengthen our foundation for sustainable growth. We will promote five strategies to achieve the goals of MTP2. Numbers one through four are inherited from our previous midterm management plan, but number five is a new strategy. During the period of the previous midterm management plan, major unexpected changes such as the U.S.-China trade conflict and the COVID-19 pandemic occurred. We must heighten our ability to respond to such changes in the future. Great changes in society and in the structure of industry are both risks and opportunities. We will therefore hone our ability to keep up with future changes in the environment and respond to uncertainties, while also further enhancing our ESG initiatives. Our semiconductor tester business as a whole has three strengths that I will touch on now. We will further reinforce all of them. Our product portfolio currently positions us to capture demand in all directions. We will continue to provide solutions in keeping with the evolution of semiconductors and further strengthen our position. Regarding our customer base, we will accelerate the acquisition of emerging players, including major IT companies that have entered the growing semiconductor market in recent years and promising fabless companies, with the aim of solidifying our mid- to long-term growth base. With our large customer base of semiconductor manufacturing companies, including IDMs, fabless companies, foundries, and OSATs, we are unique in the SPE industry. We will develop new solutions that leverage this customer base. Our comprehensive consulting ability rooted in our testing expertise is also a strong advantage. We will enhance our local resources so that we can provide even better high-quality consulting near our customers. This is the medium-term model of the tester market that is the premise for MTP2. It is based on future growth forecasts for SoC testers and memory testers. Compared to the three-year average for our previous Mid-term Management Plan, the market is expected to grow by approximately 20%-25% over the next three years. Tester investments, unlike fab capital investment plans, are made on short time horizons of a few months, tracking real demand from our clients and their application trends. We created this forecast based on our current application and technology trends and information from our customers. In the long term, demand for testers will trend similarly to demand for front-end equipment. If that trend develops in the medium term, numbers closer to the aggressive numbers of current front-end equipment companies could come within reach in the future. With regard to market share, we will aim for a level that is one step higher than the market share achieved during our previous Mid-term Management Plan period, as higher-performance semiconductors will go mainstream over the next three years. I'll now discuss our measures for each business segment. In SoC testers, we believe that further node shrinks and the widespread adoption of advanced packages and 5G millimeter-wave devices will create great opportunities for us. Apart from advanced processes, the SoC tester market has a number of other growth paths. As the best partner of our customers who lead the world in innovation, we will develop test solutions cooperatively with them. In memory testers, we plan to continue to claim a majority share of the market by leveraging our position as the only tester vendor that can provide solutions for all players in all testing processes. In our mechatronics-related business, we will promote sales of test cells. The nanotechnology division will focus on mask inspection equipment and also explore other applications for our EB technology. The SLT division, which has driven remarkable growth in our services support and others business segment over the past two years, will continue to pursue business expansion through new customer wins. To grow recurring sales, we will also grow sales of consumables such as contactors to seek synergies with growth of unit sales. In the field of analytics, we will develop innovative solutions based on our Advantest Cloud Solutions that integrate hardware and software while holding discussions with our customers. These are the numerical management metrics for MTP2. Sales, depending on the tester market conditions, we are looking for JPY 350 billion-JPY 380 billion. For operating profit margin, 23%-25%. For net income, JPY 62 billion-JPY 70 billion. ROE of 20% or greater. Earnings per share of JPY 320-JPY 370. Operating profit margin will not increase significantly due to the fact that development costs and costs associated with adding to our local support personnel will continue to be incurred as we expand our business, and we do not anticipate one-time profits such as were posted during the period of MTP1. We will maintain our improved profit margins and seek to expand them, albeit not significantly. Net income growth during the period is expected to be impacted to an extent by the fact that we no longer have loss carryforwards, and thus our tax rate will return to normal as compared to our low tax burden during MTP1. We have incorporated some shareholder returns through share repurchases into our EPS estimate. As demand for semiconductor testers is expected to grow in the future, we will maintain our high level of R&D investment, which is the source of our growth during MTP2. In addition, as mentioned earlier, with promising new players expected to emerge in the semiconductor manufacturing field, we plan to aggressively invest in courting those promising emerging customers to further solidify our business foundation. We will need to add excellent human resources to reinforce our support capabilities, which are one of Advantest's strengths. It is difficult to improve SG&A efficiency during a customer development phase such as this, but we hope to improve operational efficiency and thus raise overall profitability. Regarding growth investment other than R&D spending, we plan to use JPY 100 billion for M&A and other purposes and JPY 40 billion for capital expenditure. In terms of selecting M&A opportunities, we will continue to search for deals that can generate synergies, especially in the domains of our Grand Design vision. Regarding shareholder return, on the premise of a stable business environment during the MTP2 period, we will change our return policy from the performance-linked semiannual dividend payout ratio of 30% to a minimum amount of JPY 50 per share semiannually and JPY 100 per share annually, with the goal of ensuring stable and continuous dividends. Our target is a total annual return ratio of 50% or more, including share buybacks. Cumulative shareholder returns for the MTP2 period are expected to be JPY 150 billion or greater. However, the shareholder return policy may be revised in the event of investment growth opportunities that require more funds than expected and/or the deterioration of business performance due to changes in our market environment. Our balance sheet management goal under MTP2 is to allocate the cash flow we generate to investments and returns while maintaining financial soundness. We will use a shareholders' equity ratio of 50% or more as a measure of financial soundness. Our capital efficiency metric is ROE of 20% or higher. Both of these will be KPIs. Regarding cash management, the minimum amount of cash we expect to hold under normal business conditions during the MTP2 period will be around JPY 80 billion. We expect our cumulative operating cash flow for the period to be more than JPY 220 billion, which, with the addition of surplus cash on hand, as shown in the graph on the right, would give us JPY 290 billion available for future growth investments and shareholder returns. We will aggressively search for growth investment opportunities. However, we will balance this policy with the return of profits to shareholders. We will also consider using debt depending on our cash position. As I noted on the previous page, I would ask you to understand that the scale of shareholder returns may be reduced in certain cases, depending on our business environment. Lastly, I'll touch on our definition of corporate value and our ESG philosophy. We will contribute to humanity's sustainable future through our business activities. First of all, as shown in the graph, we aim to improve corporate value. By pursuing the three axes of shareholder value, stakeholder value, and ESG value in a well-balanced manner, we believe we can grow future profits while expanding the matrix that constitutes our corporate value. We believe that further enhancement of our ESG initiatives will synergistically promote the growth of the other two axes, and thus, of our overall corporate value. G, governance, is the first essential component of ESG enhancement. With major social change underway, we will continue to consider what a company should be and seek to implement management and operational systems that boost our earnings power. With this aim, we will promote a management system in line with global business trends, revise our executive compensation system, establish and implement succession plans, strengthen our governance system in areas such as operations, and aim to implement governance that balances the interests of all stakeholders, not just shareholders. In terms of society, we will promote values such as respect for human rights, including throughout our supply chain, and step up our policies on the development and fostering of our human resources, which are the source of our growth. Regarding climate change initiatives, we have reestablished the goals of Scope 1+2 for our in-house initiatives and Scope 3 for our value chain initiatives to further our contributions to a net zero carbon future. In addition to our support for the TCFD and RE100, we are also currently preparing for SBT certification. The urgent need to respond to climate change is felt both in society at large and in the semiconductor industry where we do business. We will actively promote our efforts in this respect. We have been working to disclose our ESG and other non-financial information through initiatives such as our triennial Environmental Action Plan, which is now in its eighth iteration, and our integrated report, which we began publishing in 2019. As a result of these ongoing efforts, we have received numerous ESGs-related awards globally, including the Corporate Governance of the Year 2020 Winner Company Award in January of this year and the Great Place to Work award in Germany. In addition, external ESG evaluators have recognized us, such as Sustainalytics listing us among top-rated companies. Since there is still much room for improvement in the world overall, social trends and demands will go on changing. We will continue to respond to changes during the MTP2 period, further enhance our ESG initiatives, and improve our external evaluations. I will close by summarizing today's highlights. Under our previous midterm management plan, we achieved all our financial targets by expanding our share of the expanding semiconductor tester market and growing our business through M&A. The digital transformation is increasing the importance of semiconductors. Their market is expanding, and they are gaining in performance, complexity, and reliability. As such, we believe that our business environment will remain positive for the time being. Under our new Mid-term Management Plan, as steps toward the final goal of sales of JPY 400 billion set forth in our Grand Design, we will pursue two axes. Revenue and profit growth through expansion of existing businesses utilizing our strengths, and the development of new businesses, which is a mid- to long-term theme. The new Mid-term Management Plan also calls for continued active investment to achieve our Grand Design goals while improving capital efficiency and reinforcing shareholder returns. On the other hand, during the previous Mid-term Management Plan, unprecedented risks such as the U.S.-China trade conflict and the COVID-19 pandemic emerged. Uncertainty is increasing. We aim to improve our ability to adapt to future changes in our environment and respond to risks and opportunities. We will enhance our ESG initiatives. This concludes my presentation of our new midterm management plan. Thank you for your attention. We will proceed with the Q&A session. Mr. Yoshida from CLSA Securities, you have the floor. Thank you very much for your presentation. This is Yoshida from CLSA Securities. My first question concerns your sales and profits outlook under your new midterm plan, as well as your assumptions regarding the tester market. I believe that in the current fiscal year, you're anticipating reaching the average three years levels that you assume under MTP2. You also mentioned that you might be able to see growth similar to that for front-end equipment. If, in that case, you were to see growth of around 30% in the market over the next two years, what do you believe that your operating income and ROE would look like? This is Yoshida. We are at present looking for quite a high growth rate from front-end equipment. At the same time, the lead time for front-end equipment can be one year or even more in some cases. There is actually a lag until that contributes to production. What I'm saying is that the demand for front-end equipment and testers does not happen at the same time. For example, over the past three years, the testers saw more growth in the front-end equipment, we believe. At present, the production capacity for semiconductors is insufficient, and so everyone has major CapEx plans. That will not come online and produce new wafers that come around for testing for some time. This JPY 350 billion to JPY 380 billion that we are talking about, in terms of JPY 350 billion, we believe that we can reach that number in fiscal 2021. In the case of JPY 380 billion, that's the average that we are talking about. If we reached JPY 350 billion in fiscal 2021, and then we were to suddenly reach JPY 380 billion in fiscal 2022, and then in 2023, is it? If we were to reach JPY 400 billion, we would not find that odd. In that case, it means that the average would be close to JPY 380 billion over three years for our sales. That means that we do see that possibility. If you look just at the JPY 380 billion and say that we're being quite reserved, we're conservative about our growth outlook, I can't say it's not conservative, but we don't think that this plan is just completely conservative by any means. Thank you. If we were to reach JPY 400 billion, of course, ROE and EPS would naturally be higher as well. In terms of the average growth rate for the three years, we do believe it will come within the range that we have shared with you. Do you follow me? Yes, I see. My second question concerns system-level tests. In your new midterm plan, you said that for your new businesses, including SLT, that you expect between JPY 35 billion and JPY 40 billion in sales. If we think about the fact that Astronics had generated about JPY 30 billion in orders in the first years after the merger, and that Essai generated around JPY 12 billion in sales, then this seems a bit lackluster. Could you tell us what you are thinking in terms of updates on outlook for the business environment and orders for SLT? I don't think that the number you just gave for Astronics is right. It is true that we acquired Essai last year and that it has generated numbers in excess of JPY 10 billion for us in one year, and that Astronics also is now at above JPY 10 billion. Both of these acquisitions were of businesses that had somewhat limited customer bases. By leveraging our customer base and giving them access to more customers, we do believe that we will see faster growth from them going forward. We don't make a clear distinction between services and others, so I can't give you a precise number, but these are definitely businesses from which we expect further growth. When you had just emerged, I think that you were saying that you saw the possibility of potential growth of 20% to 30%. Right now, what do you expect the potential growth rate to be? The potential growth rate. Give me a moment, please. Actually, I'm going to have Mr. Mihashi respond to you on that. This is Mihashi from Corporate Planning. In terms of the growth potential, we had previously said 20%. We believe that there's an ample possibility of us achieving that. At the same time, because we have to address the needs of individual customers, our progress is somewhat slower than what we had initially anticipated. I see. If I were to add just one point, it would be that we do have high expectations for growth over the next three years. I see. Thank you. Thank you. We will move on to the next question. We would like to proceed to the next participant's questions then. Mr. Nakamura from Goldman Sachs, if you please. Thank you. Thank you. I have two questions. The first concerns slide 16. As regards the tester market for 2021 and onward, you are saying that compared to the previous cycle, you are expecting to see less cyclicality. Could you specify, please, what sorts of changes it is that you're seeing compared to the previous cycle that is driving this reduction in cyclicality? As regard to our earnings outlook, you made reference to subscription models or to the leveraging of data. How might those help reduce the volatility of your earnings? We do not believe cyclicality will be as pronounced in the past. When I say the past, if you think back 20 years or so, we saw the dot-com bubble and the Great Recession, and in each instance, there were major shockwaves. In between those, there were also smaller shockwaves driven by changes in growth in products such as PCs, digital cameras, and feature phones. That resulted in fluctuations in the production of semiconductors. Against that backdrop, our tester sales repeatedly went up and down. Since 2017, the ups and downs in our sales have been basically as calm as those for other SPE. The reason for that is because there has been a broadening in the range of applications for semiconductors. For example, we are no longer solely reliant on the likes of PCs or cell phones. For example, with 5G taking off, we are going to see semiconductors become facets of our daily life in a wider variety of ways, such as for games. While their use in cars might be limited at the moment, that is going to be increasing, and also the increase in data volume means that a greater performance is demanded of the semiconductors used in data centers or for storage. Those demands are increasing. For that, we are no longer at the mercy of the demand for a single type of product. Instead, we're seeing demand from a variety of different industries that makes for greater stability. In 2021 and beyond, we won't say that we're not going to see any waves such as what we saw in the past, but we do believe that we're going to see less cyclicality. It's the stability that we've seen over the past three years that makes us so confident. That's how stable our business environment has been and the generation of our cash flow has been. In fiscal 2021 as well, we're looking forward to a good year and believe that we are continuing to see a stable environment. What was the second question? It regarded subscription businesses. As regards subscription models, we have the Advantest Cloud Solutions, which will be a foundational service for us. That's what I was discussing. Frankly, I have to say that it's going to take a little bit more time for us to be able to generate earnings from that. I am not thinking that it is going to be something so simple such as a subscription model where you just provide something and then as a result, see money keep coming in. Our customers are among the top innovators in the world, we will be working with them because we need to think together with them about what kind of a solution that we can provide that will assist with manufacturing semiconductors, raising yields, and shortening time to quality and time to volume. In that sense, I think that the best fit for us is the combination of software and our testers, so a fusion between software and hardware. That's the sort of solution that I think would be the best fit for us, and that will require quite a bit of investment. Frankly, I think that over the next year or so, we are going to be investing more than we earn. I believe that it will be another 18 or 24 months before we're able to discuss with you when we expect to be able to generate earnings. I see. Thank you. My second question concerns the multiple references that you made to millimeter wave device testing. When do you think that that market is going to get off the ground in a meaningful way? Also, what do you expect the size of the millimeter wave device testing market will be? We are working, even as we speak, on developing millimeter wave testing technologies with our customers, and we believe that it will be as of the latter half of 2022 when those are needed in a meaningful way to support mass production. This year, we will be validating a variety of different technologies. It will be as of the latter half of next year that a variety of products, by which I mean devices, will be launched. Those are going to go into mass production in the latter half of 2022 or in 2023, roughly. Even just with RF models, I believe that we can expect an annual market of JPY 20 billion or $200 million-$300 million in terms of demand. I see. Thank you. Thank you. Next, we will read questions that we have received from Mr. Wadaki of Nomura. He says, "Page 15 illustrates that you are of the same mind as me, I would like to ask for a comment on the memory wall. It is the transfer of data between the memory and the CPU that is keeping semiconductors from consuming less power and gaining more performance. Is anything being done about that on the semiconductor side that has attracted your attention and that you believe will have benefits for you in terms of your testers?" That's his question. Our answer is that we agree. It is true that the transfer of data between the memory and the CPU is an issue at the moment, and with data volumes increasing, it is true that power is not being used efficiently in terms of processing data. In response, the industry has been proposing applications that integrate the CPU and the memory, such as via the processing in memory concept. It has also been working to bolster the processing power of the CPU itself, as well as that of the memory side. In graphics applications, for example, we expect to see adoption of high-speed transfer technologies that incorporate PAM4 into GDDR6, for example. When there are advancements in semiconductor technologies such as that, just as we have described under our Mid-term Management Plan, we believe that that accelerates initiatives for semiconductor testers as well. We will benefit in that sense, we believe. His second question regards our market share. He says that it looks like there's going to be more investment in foundries in North America, that since the foundries are being attracted because of security considerations, he believes that the priority will also be given to U.S.-made testers, what do we think of that risk? Well, I do believe that we're going to see a lot going on in terms of national economic security going forward. Even if America is to reshore manufacturing, the bit that you're asking about the priority being given to U.S.-made production equipment, is that Mr. Wadaki's own personal opinion? Well, this is a question from Mr. Wadaki. He's asking what we think of the risk. Well, we can't rule that out as a risk, if that were to happen, then it will, of course, be important in terms of what kind of response that we take. If American companies or the American fabless players are producing just with American technology, if that's the question, then that's not the case. They are using materials and equipment from Asia, and also are continuing to produce in Asia as well. Their divide with China might widen further, but I don't believe that that means that they're not going to work with other regions going forward. Moreover, I don't think that the American companies that produce SPE or semiconductors are going to completely discard the Chinese market. I do believe that that is another way to look at it. I believe that there is nothing else that we can do except for engage in solid information gathering and analysis regarding what is going on politically and internationally, and then to respond to that. We need to enhance our capability to adapt. Of course, there's no guarantee that nothing will happen that might have an impact on our midterm plan. Please assume that we have formulated this plan based on that understanding. We are running low on time, so I would like to make the next set of questions our last, and I give the floor to Mr. Hirakawa from BofA Securities. Can you hear me? We hear you. Thank you. Can you hear me? Thank you. I have two questions. This is Hirakawa from BofA. Thank you. My first question concerns your announcement on capital allocation, which was very transparent. I'm actually surprised, but I would like to ask about that. You are targeting a total return ratio of 50%, which is higher than before. You're saying that shareholder return will be JPY 150 billion or more over three years, and meanwhile saying that the upper range of net income that you're targeting on average is JPY 70 billion, and JPY 70 billion times three is JPY 210 billion. If the shareholders are going to be receiving JPY 150 billion from JPY 210 billion, that means that the total return will be quite a bit above 50%. Is there any way that 50% is your dividend payout ratio and that we can expect you to make up the difference in other ways? That's the first question. We are saying that the total return ratio will be 50% or more, so there's no upper limit. We have not said anywhere that our dividend payout ratio will be 50%. In other words, as regards the dividend, we will have JPY 100 as our base, and we will not be lowering it below that. We hope that we will be able to gradually raise it from there. In the case of this 50% and what we would do if there was any gap, we do naturally believe that we will have profits beyond that. There's the possibility that those could go to share repurchases. This JPY 150 billion would not be funded solely by net income, but also from leftover budget from the past three years. We had said that we were going to spend JPY 100 billion on M&A, but we only used JPY 50 billion, so we have surplus cash. It means we're thinking of a shareholder return inclusive of that cash over the next three years. It means that there is, as you suggest, the possibility that our total shareholder return goes well beyond 50%. I see. Thank you. My second question, and at the risk of belaboring the point, there is a president of a SPE backend peer of yours who is saying that the cyclicality, including at OSAT, is somewhat reflective of the desires of humans in the sense that when times are good, they find themselves investing. He doesn't think that the cyclicality is going to go away. I understand what you were saying about the increased number of applications, meaning that there is not going to be cyclicality anymore. Also that over the past three years, that there has been less cyclicality. At the same time, there are concerns in the capital markets that there's going to be a slight correction in Chinese smartphones. I would like to ask you, Mr. Yoshida, what your thinking on cyclicality is. Thank you. If you understood us to say that we think there's going to be no more cyclicality, then I apologize. We're not saying that there's going to be no more cyclicality, but only that the market is going to be less cyclical. There are definitely still going to be ups and downs, and if there is a major investment, then you will see pauses or sometimes prolonged pauses, possibly. In that sense, we have given this range of JPY 350 billion-JPY 380 billion. Based on the semiconductor demand that we are experiencing at present, there is no SPE player that is struggling, we believe. When things are going this well, of course, we have to prepare for them dropping off at some point, and all of the analysts are carrying on about a potential peak. We don't think that SPE will grow and never peak because that's not possible. If there are good times, you always see pauses or even sometimes slight retreats are possible. Over these three years, we don't think that we are going to consistently grow up and to the right. At present, it is true that conditions are very strong, and if the economy were to grow more robust in the wake of the pandemic, given that everyone right now is saying that supplies are still short, we think that semiconductor production could strengthen further. The question is what happens after that once the economy calms or with everyone having increased their capacity to supply semiconductors for cars? We have to be mindful of what's going to happen after that. Does that answer your question? Thank you for the very detailed answer. Yes. Is that fine? Thank you then. Thank you. Thank you. We had received other questions, but we've reached the end of our scheduled time, so I would like to close out the Q&A session here. Additionally, to close out the briefing that Advantest has hosted today on its new midterm management plan. We thank you for taking time out of your busy days to join us. Thank you.