Time for us to start Tokyo Electron financial announcement for the third quarter of the fiscal year ending in March 2021. Thank you very much for joining us today despite your very busy schedule. I am Yatsuda of IR Department, acting as a moderator in today's session. Now let me introduce attendees on our side. Mr. Tetsuo Tsuneishi, Corporate Director, Chairman of the Board. I am Tsuneishi. Nice to meet you, everybody. Next is Mr. Toshiki Kawai, Representative Director, President and CEO. I am Kawai. Thank you very much for joining us. Next, Mr. Yoshikazu Nunokawa, Corporate Director, Executive Vice President and General Manager, Global Business Platform Division, Finance Unit. I am Nunokawa. Thank you very much for joining us. Before starting the presentations, let me explain the flow of today's meeting. First of all, Mr. Nunokawa and Mr. Kawai will make presentations. After that, up until 7:00, we will have the question and answer session, entertaining questions from the audience. This financial announcement uses two channels on Webex, providing simultaneous interpretation between Japanese and English. As we explained in our email, you are kindly requested to use apps on PCs or mobile terminals if you plan to ask questions. If you do not plan to ask any questions, you can use telephones. Since this is a meeting for institutional investors and analysts, we would appreciate your understanding that we receive questions only from institutional investors and analysts as usual. We will upload the audio contents of this meeting, both in Japanese and English later. It would be kind if you could also refer to them. Mr. Nunokawa, Corporate Director, Executive Vice President and General Manager will present the consolidated financial summary. Mr. Nunokawa, please. I am Nunokawa, Finance Unit. Good afternoon. I'd like to present the consolidated financial summary of the third quarter of this fiscal year ending in March 2021. First of all, you can see the quarter-based financial summary. The net sales for the third quarter was JPY 291.7 billion, 17.4% decline from the second quarter. Gross profit margin was high at 41.7% as our plant utilization rate increased. Operating margin was 21.6%, along with the rise of the gross profit margin. This is a graphical representation of the financial summary. This shows segment information. For SPE, sales was JPY 264.3 billion and segment profit margin was 25.7%. As I explained in the slide financial summary, though the sales declined from the second quarter, the segment profit margin remained almost unchanged, thanks to the impacts on our plant utilization and customer mix. For FPD, as sales increased in the third quarter as well as in the second quarter, segment profit margin was improved to 17.9%. For the composition of net sales in the third quarter, the SPE sales accounted for 91%, while the FPD sales accounted for 9%. This slide shows the SPE sales by region. The sales declined in almost all regions. Particularly, the sales in Korea decreased, primarily because of the drop of the sales to the memory device manufacturers. In China, just like in the second quarter, the sales proportion of the local customers showed an increase. This shows SPE new equipment sales by application. From the bottom, logic and others accounted for 27%, logic foundry was 28%, non-volatile memory was 19%, and DRAM was 26%. The sales in the other application than foundry declined, the proportion of the sales to logic foundry increased compared with the sales to memory device manufacturers. This shows field solution sales. In the third quarter, the sales of field solution was JPY 93.5 billion. The proportion of the field solution sales in the consolidated sales was 32%. The sales of modifications contributed most to the sales increase. This slide shows balance sheet. For assets, total assets were JPY 1.270 trillion, and cash and cash equivalents were JPY 269.0 billion. The decline from the second quarter is mainly attributed to the increase of the inventories and payment of the dividends. The inventories increased from the previous quarter. To prepare for sales increase in the fourth quarter, the number of process tools undergoing startup is increasing now. Liabilities were 363.6 billion JPY, and net assets were JPY 906.7 billion. The equity ratio was 70.4%. This shows the inventory turnover and accounts receivable turnover. The inventory turnover was 122 days, coming back to the previous level. The accounts receivable turnover was 39 days. My last slide shows the cash flow. The cash flow from operating activities was minus JPY 118.6 billion, which is attributed to the increase of inventories. The cash flow from financing activities was minus JPY 56.4 billion, mainly because of the payment of dividends. The free cash flow was minus JPY 34.7 billion. This concludes my presentation about consolidated financial summary. Next, Mr. Kawai, our CEO, will present business environment and financial estimates. Mr. Kawai, please. Once again, I am Kawai. Thank you very much for joining us today. Let me talk about business environment and financial estimates. Let me start with the business environment. For the WFE market in CY 2021, in addition to strong logic foundry investment exceeding the previous year, memory investment is expected to recover, driven by the spread of 5G and increase of investment to data centers. Amid those circumstances, the WFE market in calendar year 2021 is gaining momentum to grow almost by 20% from the record high CY 2020 market size. For the FPD fabrication equipment, TFT array process market, the investment to OLED for mobile applications will increase from the previous year, but investment to LCD for large site panels is expected to decrease. In the future, driven by the OLED investment, FPD equipment market is expected to grow. In CY 2021, however, due to the transition in large size panel investment from LCD to OLED, the FPD market is expected to decrease by about 30% on year-on-year basis. Next, this slide shows the WFE market outlook by application for the logic and foundry. Active investment will be further enhanced due to expanding applications driven by the ICT promotion. The logic foundry is expected to drive the WFE market growth this year. For DRAM, inventory adjustments are proceeding smoothly, along with increasing demand for 5G mobiles, PCs, and data centers. Some investment plans are pulled forward, and the investment started to recover from the beginning of this year. For non-volatile memory, as applications of SSD are expanding, strong investment is expected to continue just like the previous year. This shows the business progress in the third quarter. Along with the transition to the data-driven society, the WFE market is now entering a new phase of growth. Amid such circumstances, in an attempt to maximize growth potential of our company, we implemented various measures in the third quarter as well. The first measure was release of new product and new platform. CELLESTA SCD, a new product for cleaning process, employs the supercritical drying technology to provide solutions to the issues in the cleaning and drying processes for leading-edge devices. CELLESTA SCD has already been introduced to high-volume DRAM manufacturing lines. For its future introduction to logic and 3D NAND lines, some evaluations have started. Episode UL, a new platform for etching systems, enables our customers to select the number of chambers from 4 -1 2 chambers flexibly to satisfy various customer needs. On top of that, it is equipped with our proprietary smart tool to realize autonomous process control through big data analysis. I will talk about enhancement of our digital transformation activities. Our company has developed software in Sapporo office since 1991. In order to further enhance software development capability to promote digital transformation, we moved Sapporo office to a new place and reopened it as TEL Digital Design Square in November 2020. By combining digital transformation with our advanced technological capability, we will provide our customers with high value added, and further improve our capital efficiency. For our production capacity, operations started in the new production buildings in Tohoku and Yamanashi, both of which were completed in the second quarter of this fiscal year. Capacity potential in Tohoku plant and Yamanashi plant has been raised by twice and 1.5 times respectively. Accordingly, we are now ready in terms of production capacity for future increase of demand. Another topic in the third quarter is our environmental initiative. As ICT, information communication technology, is to be implemented actively toward the future, our company will contribute to reduce power consumption in the following 3 aspects. Firstly, we will support our customers in their technology development for low power consumption semiconductor devices by using our process tool technology. Secondly, as a tool vendor, we will raise productivity of our products and reduce energy consumption of our products during their usage. Thirdly, we will promote energy conservation in our own operations. Our corporate philosophy, we strive to contribute to the development of dreams, inspiring society through our leading-edge technology and reliable service and support. Fulfilling this philosophy will lead our company to contribute to sustainable development, the society, and also enhance our corporate value. Based on such idea, we revised the midterm environmental goals for 2030 to make them more challenging. In the revised goals, for the target to reduce CO2 emissions per wafer processed in TEL's product by 30%, the reference year was changed from 2013 to 2018. For the CO2 emissions in our sites, our company will raise the ratio of renewable energy to 100% in every site by 2030. Accordingly, we have raised the target to reduce the total CO2 emissions compared with the reference year of 2018 from by 20% to by 70%. Next, I'd like to show the financial estimates. For the fiscal year ending in March 2021, we have revised the full year financial estimate upward, reflecting the demand increase. The POR we won in the recent years have now been introduced into the customers' high-volume production lines, by which we are able to take the full advantage of the customers' enhanced investment in our financial performance. We plan to increase the full year net sales by JPY 60 billion to achieve JPY 1,360 billion. Operating income is expected to increase by JPY 25 billion to achieve JPY 306 billion. The consolidated net sales in the fourth quarter is expected to hit record high of JPY 400 billion. This slide shows the sales forecast only for SPE new equipment in the fourth quarter. Due to the increasing investment of leading-edge logic foundry and memory, the SPE new equipment sales is expected to be JPY 297 billion, which is record high quarterly net sales. The R&D expenses and CapEx plan in this fiscal year remain unchanged from the announcement on October 28, 2020. As I said earlier, we raised production capacity in Tohoku plant and Yamanashi plant. In order to realize sound and steady growth in the future, we are implementing record high R&D investment and capital investment. We will continue proactive investment for further growth to achieve the targets of midterm management plan. Finally, this shows dividend forecast. Along with upwards revision of the financial estimates, the year-end dividend per share will be JPY 380, increasing by JPY 65. We are planning to pay the full year dividend per share of JPY 740. Thank you very much for your kind attention. This concludes my presentation. Now, we will have question and answer session until 7:00 P.M. We will receive questions both in Japanese and English, but as our attendees are on the Japanese channel, please allow us to restrict verbally asked question to only in Japanese. When you ask questions in Japanese, please hit raise hand button on Webex. For details, you are kindly requested to refer to the instructions attached to the email. I will announce the name of the person who ask a question one by one. Please check the chat box on Webex, as our secretariat will inform you in advance that you will be the next person to ask a question. If you ask a question in English, please use the chat box of the Webex to send the question in text together with your name and affiliation to the secretariat. We cannot answer a question if no name or affiliation is given. On the Japanese channel, I will read out the question translated into Japanese, and our attendees will answer it in Japanese, while on the English channel, it will be simultaneously translated into English on the real-time basis. For the questions verbally asked in Japanese, please allow us to limit to one question with one follow-up question. For the English question sent in text, I am very sorry, but we will receive one question without a follow-up question. If we have extra time toward the end of the meeting, we will receive a second round of questions. When you ask a question, please make yourself closer to the microphone. After asking a question, could you making sure to mute your microphone, please. Now let's start the question and answer session. First question is from Mr. Yoshida of CLSA Securities Japan. Thank you very much. I am Yoshida of CLSA Securities. My first question for the forecast of WFE market. This year, CY 2021, almost 20% increase is expected. That's what you said earlier. When you divide into first half and second half of the current year, your competitor said the first half sales is higher, according to your forecast, how do you view the forecast in the first and second half of this year? At present, I think we do receive strong inquiries, 20%, we are very getting closer to 20%. There is a momentum getting very close to 20%. On quarterly basis, we are now carrying out the scrutinization on the quarterly basis forecast. One thing we can say at this point is the strongest segment is logic foundry, followed by DRAM and NAND. When I say almost 20% growth, that is the proportion or composition in the market. Your question, as you asked earlier, I think in each quarter, we do receive the strong inquiries for each quarter almost evenly. I think the condition for us is rather leveraged. Of course, we must be careful about the timing of the customer's strategic investment, so we are now scrutinizing the customer's plan. I have one follow-up question. Now, you talked about the forecast by application. When you look at the fourth quarter, the non-volatile NAND sales is expected to increase drastically. By region, which region is stronger than the others in terms of the sales forecast for the fourth quarter? By region. As of today, I'm sorry, but we are not able to refer to the amount by region. Logic foundry and memory, but the proportion between the two. For CY 2021, memory accounts for 40%, logic foundry accounts for 60%. That's the rough figure I can give for the CY 2021. Thank you very much. What I want to ask is, fourth quarter, according to your full year guidance for the new sales, maybe the fourth quarter. NAND is rather strong. I want to understand the background. Which region now sales is stronger? I am Yoshida. Let me answer to your question. NAND flash, we have limited number of customers. If we refer to the region, you may understand the name of the customer. Therefore, it's so difficult for us to give the figures by application and region. Thank you very much, Mr. Yoshida, for your question. Next question is from Mr. Nakamura of Goldman Sachs Japan. Thank you very much. I am Nakamura of Goldman Sachs Japan. Thank you very much for your presentation. I have a question on WFE market. 2021, the 20% almost 20% increase. You talked about very strong outlook for 2021. Your SPE business, the net sales, is expected to increase by 20. What is the level of the increase of the net sales of your company when the market increases by 20% in the year ending in March 2022? For the legacy nodes for the automotive semiconductors, there are some shortage of the semiconductor for automotive region. When you increase the shipment of the legacy nodes equipment, is it possible for you to realize your guidance? From that viewpoint, POR winning activities are moving on very smoothly, and we do not miss any potential POR. Therefore, WFE market is expected almost 20%, and we try to take full advantage of that market increase. In addition, for legacy nodes, you asked about legacy nodes. For example, what is hot in topic is the automotive semiconductors are now running short. That's what newspaper says day by day. Even for that, our company do have the strong presence in that area as well. In the industry and in society, we can make big contribution in that area as well. In principle, when semiconductors are in shortage, as for the process tool vendor, there are no negative impacts on us. That provide us big business opportunity. We can increase the sales of the process tool, which is good for us, very good for us. Legacy tools, not only the new demand for legacy tools, but even for the leading edge device. The customer purchase the leading-edge process tools for the leading-edge devices, and they can also make the best use of the existing process tool and also upgrade or modifications to improve their functionality or to improve throughputs of the existing process tools. In that sense, not only new sales, but also solution business. I think that market trend has a positive impact on our business. In the future, semiconductor market, in line with the Moore's law, that will have the shrink, but at the same time, AI customization and also hyper-mass production. There are three different direction in the future, technology innovation and semiconductor mass consumption. Those two are combined with each other to grow the semiconductor market. For automotive semiconductors devices, in the near future, the EV will become the mainstream in the automotive industry. We'll have the strong or deepen relationship with the automotive semiconductor device manufacturer that will give us the great opportunity for the future. This trend in the market will give us the positive impact on our business performance in short-term, midterm, and long-term basis. Did I answer to your question? Thank you very much for your detailed answer. Thank you very much. Mr. Nakamura, thank you very much. Next question is from Shibano, Mr. Shibano of Citigroup. Thank you very much. I am Shibano from Citigroup Global Markets Japan. Earlier, you said WFE market is expected to grow by 20%, and you said Tokyo Electron can outperform the market growth. When you look at the end result, maybe 20% sales increase, that should be JPY 1.5 trillion or JPY 1.6 trillion when I simply add 20%. Your target within five years, you have financial model JPY 1.5 trillion or JPY 1.7 trillion. You are getting closer to that midterm management plan. Next year, if you achieve JPY 1.5 trillion net sales and OP margin of 26.5%. Is it difficult for you to achieve that level of the operating profit margin? If it is so difficult yet, how do you fill the gap? I understand you haven't calculated the net sales for next fiscal year, but maybe it could be possible for you to achieve very close to the 20% increase in net sales next year. Margin target, now you have some gap between your target and current operating margin. How do you plan to fill the gap between your current operating profit margin and your target operating profit margin? About your question, there are many ways. AI, 5G, there are many applications. Those applications are increasing. Accordingly, WFE market is expanding. Our mid-term management plan, at present, we are now preparing the next fiscal year budgets, and we are going to report it to you in the future. If WFE market increases, we are not able to achieve the target right away. That's not the case. Our target applications, in those target applications of a company, how we can provide value-added along with the generation transition, and that's how we can gain the profitability. Even if WFE market grows, that will help us or enable us to achieve the mid-term management plan. That's not our case. Now you can see several generations, and Tokyo Electron is prepared to provide high-value-added solutions for those generations. Along with the time and along with the generation, we are going to achieve the mid-term management plan. WFE market size, there are many factors, we need to scrutinize those factors closely. Our activities will remain unchanged. That's how we try to implement our plan for the future. Thank you very much, Mr. Shibano, for your question. Next question is from Mr. Wadaki of Nomura Securities. Mr. Wadaki, please. Thank you very much. Thank you. Thank you very much for a very strong focus for the future. For next year, I have some concern about China and United States and Europe. How do you see the risks in those regions? For the America and China, as a company, I'm not in a position to answer to that question. On the other hand, our company, bilateral negotiation, so we will take a close look at the bilateral negotiations between nations. One thing we can say now, actualLy, so far for China, the local manufacturers in China, that accounted for 15%-20% of the WFE market so far. We need to closely look at the impacts on that market segment. ICT applications will be expanding definitely. Investment, accordingly, will be implemented somewhere in the world. Commodity applications, low power consumption, and leading-edge applications, technology innovation will be essential. Therefore, somewhere in the world, investment will be going on. Therefore, in order for us, as long as we have the leading-edge technology capability, world-class technology capability, we are able to achieve our target. That's the position we have when we develop our strategy, so our strategy will not be affected. One thing we can say is bilateral negotiation. We are going to closely look at the bilateral negotiation, and we'd like to be fair when we promote business activities. One follow-up question. China, Europe, and America, the leading-edge package. I think you are the general provider, the Japan leading provider of the comprehensive package of the process tools. As for the package, how do you see the market focus, not only WFE, but also the package? I understand your question is about our 3DI business. China, 3DI, we can provide the value added by providing our process tools. Our business opportunities in CY 2021, our business opportunities for etching, cleaning, film deposition, prober, and packaging, all those areas will help us to increase our business opportunities and business performance. Thank you very much. It is not only for China market, I just talk about global market. You do have the various diversified business opportunities. Thank you very much for your answer. Thank you very much. Mr. Wadaki, thank you very much for your question. Next question is from Mr. Hirakawa of Bank of America. One question. I think my question is a kind of follow-up question of the previous question. Let's see. China, so WFE China accounts for 10%-15% in WFE market. When you compare 2020 and 2021, so now WFE market increases by almost 20%, and China local players, so from 2020 to 2021, how the proportion of the local China players grows or decrease for memory and no memory? Could you divide it into memory and no memory, please, when you talk about proportion of the China local players? 15%-20%. Based on the previous figures, the China players accounts for 15%-20% in total WFE market. This year as well, there should be no major change in that proportion of the China local players. For logic and memory proportion, I'm sorry, I'm not able to give you any answer on that area. In principle, along with the market growth, China local players will increase their investment. Is this correct understanding? Yes. For high-end commodity and every type of applications, China players' investment are coupled with the global trend. Thank you very much, Mr. Hirakawa, for your question. Next question is from Mr. Yamamoto of Mizuho Securities. Mr. Yamamoto, please. I am Yamamoto of Mizuho Securities. Thank you very much. I have some specific question about figures. Now you have revised your fourth year, and JPY 60 billion increase, and gross profit is expected to increase by JPY 26 billion. 43% should be the marginal profit ratio when I calculate those figures, but the fourth quarter, you have JPY 400 billion sales, but 40.5% gross profit margin. 43% marginal profit ratio, that's how we can calculate the figure. Even if the sales increased to JPY 400 billion in the fourth quarter, it's difficult for you to increase the gross profit margin more than 41%. What sort of costs are generated? What is the reason why the gross profit margin doesn't reach the level of the marginal profit ratio? Mr. Yamamoto, thank you very much for your question. As you pointed out, the fourth quarter sales is JPY 400 billion, as you said. When you do some calculation, as you said, the gross profit margin, so 41.8% in the third quarter, but 40.5% in the fourth quarter. This fiscal year, when you look back this fiscal year, first quarter and second quarter, the 40.8% in the first quarter and 38.6% in the second quarter. Unfortunately, gross profit margin, unfortunately, was not steadily increasing. We are now working on the half-year budgets, and we are now looking at half-year based calculation for the fixed costs. This fiscal year, the third quarter, in particular, production activities, I mean, utilization rate increased. In other words, the third quarter, the inventories increased. Accordingly, the fixed costs, which were not recognized in the third quarter, will be recognized in the fourth quarter as cost of goods in PL. These are the factors as well. This is the reason why we came up with this forecast. Efficiency should be enhanced and marginal profit ratio need to be improved furthermore so that we can increase gross profit margin. We need to wait for a while before we can see the tangible impacts on the increase of gross profit margin. I am Kawai. Let me just give the additional comments. As Nunokawa said earlier. At present, about 20% is growing ratio of the WFE market. We do receive very strong inquiries. We have increased our capacity potential, and we are now implementing a manufacturing plan aggressively, so fixed costs might be changed in the future. Another thing I want to say right now, in order for the growth, we do have the high potential for growth. It's a bit different from other companies. Now we are investing large amount of money for the future growth, and as for R&D expenses in the cost of goods, that includes the investment for the future growth. That is simply say, compared with other manufacturers, our performance or focus are not the same as others. When we find some business opportunity, we can move on to then, as for the gross profit margin might be affected to some extent in such case. Thank you very much for your answer. That's all from me. Mr. Yamamoto, thank you very much for your question. Next, we have Mr. Yasui of UBS Securities. I am Yasui of UBS Securities. Can you hear me? Yes. I have two questions. The first question is, last year, Mr. Kawai made some comment in the public, 2021 you can see the growth, and 2022, we will see higher factor to increase the market size. If my memory serves, that's what you said. By 2021, the Taiwanese foundry increased the investment drastically. From the viewpoint of the stock exchange market, we have some concern that the growth will continue into 2022 as well. Now DRAM is recovery, and we can see stronger investment in DRAM in 2021. Second question is, when you have the performance improved, so the gross profit margin is about 40%, and everyone thinks the gross profit margin should be higher than that. When the sales increases because of maybe 5G, is it possible for you to increase the gross profit margin to 45%-50%? With high speed, you can see increasing with high rate. One thing we can say is we are now facing big years. 2021 is a big year, and 2022 is another big year. Those prospects or focus remain unchanged. The calendar year base or quarterly base, there might be some shift in our focus or trends, but maybe we will see very good two years, two consecutive big years. Our prospect for two years to come remain unchanged. Needless to say, DRAM, NAND, and non-volatile applications. I'm sorry, DRAM, NAND, and foundry logic. We look at those different segments, and there are some difference among those segments. When it comes to big years prospects, from the end of last year, my view or our view remain unchanged. I think our prospects, the likelihood of our prospect is getting more certain. Which is bigger, 2021 or 2022? Actually, some investment plan has been pulled forward. We need to look at very closely, but actually both 2021 and 2022, those two years will be big year, unprecedented big years. That's the first question. About the gross profit margin question. Needless to say, in our midterm management plan, the value added and also the marginal profit ratio of the equipment and also gross profit margin, all of them are supposed to increase in accordance with the midterm management plan in our business model, which portion should earn how much. To some extent, we do have some rough estimation, and we will see the steady increase of those figures. Gross profit margin, we are implementing midterm management plan because we think we are sure that we can increase gross profit margin. Thank you very much, Mr. Yasui, for your question. Next question is in text Mr. Ishino of Tokai Tokyo Research Center. I want to understand the forecast for the EUV lithography. IR department will answer to the question. EUV lithography for 5 nanometer in foundry. Quite a few EUV lithography system have been shipped for 5 nanometer. When you look at the recent increase of the investment by the foundry are targeting on the 5 nanometer leading-edge technology node. The size of the foundry investment is increasing year by year. The size of investment is expected to increase for the proportion of the leading-edge technology node from 5 nanometer to 3 nanometer. For 3 nanometer node, I think the EUV lithography adoption will be accelerated further north. For coater/developer, our product, we do have 100% share for the high-volume production line, the criticality of the cleaning equipment and etch equipment will be increasing, and that will give us great opportunity for us. EUV lithography investment, that's a frequently asked question for our company. The EUV lithography expansion will give us great business opportunity to us. After the introduction of EUV lithography to the customer's line, our sales has been improving. That's how I'd like you to understand the impact of the EUV lithography on our business. Mr. Ishino, we receive one follow-up question from Mr. Ishino. ASML revised their prospects downward. How do you look at that, the downward revision of the sales by ASML? I think that might be some short-term adjustment, but I think the trend of adoption of EUV lithography will remain unchanged. There is one customer using the EUV lithography, but I think other companies also adopt the EUV lithography in the future. Therefore, the adoption or introduction of EUV lithography will be increasing. For DRAM, the leading-edge customer is going to adopt it, the EUV lithography, so we think the EUV lithography will be adapted for the DRAM. Actually, the number of the processes are not so many for EUV lithography for DRAM compared with foundry. The DRAM manufacturer just adopt a limited number of EUV lithographies. Thank you very much for your question. Next question is Mr. Damian Thong of Macquarie Capital Securities. Mr. Damian Thong, please. Thank you very much. Can you hear me? Yes. In the third quarter, field solution sales look very high, especially for SPE, and also in the fourth quarter, field solution sales is expected to be very high. Could you give us some explanation? 200 millimeter or upgrade or modification demands, there might be some demand for those, but in addition, are there any other things? The forecast for next fiscal year, in particular, the number of the process tools to be shipped, how much level would you expect in next fiscal year? The IR department will answer to your question. Third quarter sales, so field solution business increased a lot. At present, we are in the improving trend, especially parts service sales has been increasing steady. Third quarter, you saw the great increase because of the modification business. It's a kind of transient business. However, the modification business does not steadily increase or maintain. The parts business is expected to grow steadily, on the other hand. Sometimes we see some modifications, inquiries for modification from time to time. For legacy node, modification demand is increasing, so we think that is our business opportunity, and we try to capitalize on that trend in the market. I have one follow-up question. May I ask one follow-up question? Yes, please. For modifications, the sales of the modification, could you let me know the annual sales for modification business? For modification only, we do not release the information, but parts and service accounts for 60%, and used equipment modification accounts for 40%. That is a rough proportion. Recently, parts service, because the customer's fab utilization rate is rather high, so parts business accounts for more than 60% of our total field solution business. Thank you very much for your answer. Thank you very much, Mr. Thong, for your question. Next question is from Mr. Hanaya of SMBC Nikko Securities. I am Hanaya of SMBC Nikko Securities. I have very basic question, I'm sorry, but just clarification. For the third quarter, actual for sales, I wonder, your sales was less than your expectation for the third quarter. How do you view the sales in third quarter? Do you think the sales in the third quarter is just the same level of your expectation? Are there some amounts of sales which were pushed out to the fourth quarter? For that, I am Nunokawa. I want to answer to your question. For the third quarter sales compared to the second quarter sales, you can see the significant decrease in the sales in the third quarter from the second quarter. For one thing, the sales in the second quarter, because of the sales pulling forward from the third quarter to second quarter, you can see the big sales in the second quarter. Actually, shipment itself, the end of the third quarter, the number of the process tools shipped is increasing, so that sales will be recognized in the fourth quarter, so there are no particular reasons in the third quarter. I am Kawai, I'd like to add a question. Actually, our third quarter sales is just as planned. There is no major reasons, particular reason for the decrease in our sales. Thank you very much. Mr. Hanaya, thank you very much for your question. Next question is from Mr. Maekawa of Credit Suisse Securities Japan. I am Maekawa of Credit Suisse Securities Japan. I was impressed with your figures. What changes over the past six months? What's the driver to encourage your customers to increase the investment? What is your understanding when you look at final demands compared with the six months ago? There should be no major change or stronger final demands. Technology, the major change is TSMC. They got the order from Intel CPU. I think that is a kind of upward factor, but other than that, are there any other factors to increase the final demand or any technological factors to increase the investment of the customers? I am Kawai. According to my understanding, the major change in our industry, actually in the past PC centric era, and after that, PC and mobile centric era, now we are in the big data centric era, having IoT, AI, and 5G. Demand for the products, our final products, and semiconductors are required for that. Now semiconductors are devices are required for some value provision. We are now entering the new phase of growth, and we are just in the middle of that new era, getting into the new era. The supply-demand balance, there are some adjustment, needless to say. There are some adjustment period in the future, but by and large, semiconductor device market exceed $1 trillion in year 2030 or 2031. I think that this market increase continues. In principle, last year, last spring, the COVID-19 pandemic started and super large data center, because of the demand from them, there was some shortage of the DRAM, concern of the shortage of DRAM, so they purchased large amount of DRAM strategically in last spring. Now data-driven society, DRAM inventory is decreasing rapidly, so after the adjustment period is completed, now we are in the phase of another growth. In that sense, demands for PC increasing and 5G mobiles, 5G infrastructure, 5G smartphone market is growing, and data center demand also recovering, and in the future, the high performance or high speed CPU will be coming out. When you look at those market trends, that's the reason why the customers' investment are getting more and more active now. There are different viewpoints and ideas. I'm sorry, my answer is rather obstructive. Data center, PCs, and 5G mobiles and other applications, automotive semiconductor devices. These are the drivers. Actually everything is a kind of driver to increase the customer investment. Thank you very much, Mr. Maekawa, for your question. We have one more question in text. Let me read it out. Mr. Hasegawa of Mitsubishi UFJ Morgan Stanley Securities. Post-sales business profitability might be changed. The third quarter, you can see the reason. What is the reason modification business increased in third quarter? What sort of impact do you have from the increase of modification in the third quarter? As for the third quarter modifications, because that is directly linked to the customer's plan, so IR department will answer to that question. Yes. As for the modifications, so we receive orders for modifications along with the customer's plan. It's so difficult for us to forecast the trend of modification in the beginning of year. By chance, we have many modification orders in the third quarter. When we see the demand increase in the customer, then the customer purchase the process tool, but it takes time. The simplest way to address the increasing demand for the customer is introduce modification for their existing machines to enhance the productivity. That's the reason why we do have very strong inquiries for the modifications. By chance, those modification orders increased in the third quarter. As for the changes in profitability, modifications do have the high profit margin, in some cases, the field solution business. We do have the existing technologies, and we can use the existing technologies for our business opportunities. That's the reason why we can enjoy high profit margin for the field solution business. I am Kawai. I want to add some comment. For mid-term or long-term perspective, from the viewpoint of the profit margin, I think we can improve the profitability or profit margin further more. Year-by-year, process tool upgrade inquiries or request is increasing, for example, but once we deliver a process tool, for example, batch system, that each batch could be increased from 100 wafers to 150 wafers. That is order for modifications. Machine learning, a virtual metrology. By using those advanced technologies, we can enhance uptime of the machine or maintenance has been improved to enhance the yield. This is how we can provide added values to the customers. Now we can see increasing level of [FFFs]. We have shipped 4,000, 5,000 units. In a moment, we should complete the diagnosis of the process tool and remote support. We need to have infrastructure to be built every year to provide remote support to the increasing installed base. For those reasons, field solution business is expected to increase their profitability. Mr. Hasegawa, thank you very much for your question. Now it's time for us to close today's financial announcement. Thank you very much for joining us despite your very busy schedule. Thank you very much. Thank you very much.