Thank you for waiting. Now it's time for us to start Tokyo Electron financial announcement for the third quarter of the fiscal year ending March 31st, 2022. Thank you very much for joining us today despite your busy schedule. I am Yatsuda of IR department, acting as a moderator for today's session. Now I'd like to introduce today's attendees. Mr. Tsuneo Tsuneyoshi, Corporate Director, Chairman of the Board. Next, Mr. Toshiki Kawai, Representative Director, President and CEO. I'm Kawai. Nice to meet you, everybody. Next, Mr. Yoshikazu Nunokawa, Corporate Director, Executive Vice President and General Manager, Global Business Platform Division, Financial Unit. I'm Nunokawa. Thank you very much for joining us. Prior to the presentations, let me explain the flow of today's meeting. First of all, Mr. Nunokawa and Mr. Kawai will make presentations. After that, until six Japan time, we will have a question and answer session where we take questions from the audience. This briefing will be conducted using two channels of Webex with simultaneous interpretation between Japanese and English. As we announced by email, if you would prefer to listen to the audio only, you can participate by phone. But if you plan to ask questions, please use applications or your PC or mobile device. In addition, since this briefing is intended for institutional investors and analysts, we will take questions from institutional investors and analysts only. We will post the audio of this briefing in Japanese and English on our website within a couple of days, so please access our website if necessary. Let's move on to the presentation session. First, Mr. Nunokawa will explain the third quarter of fiscal 2022 consolidated financial summary. Mr. Nunokawa, please. Good afternoon. I am Nunokawa of Finance Unit. Now, I would like to present the consolidated financial summary of the third quarter of fiscal year ending in March 2022. In the third quarter, we generated net sales of JPY 506.4 billion, 5.4% rise from the previous quarter. The quarterly net sales exceeded JPY 500 billion for the first time, hitting a record high. SPE net sales was JPY 488.8 billion, also hitting a record high on the quarterly basis. FPD net sales was JPY 17.6 billion. Gross profit margin was 46.0% as utilization rate of the plants increased further in accordance with the fourth quarter sales plan. Operating margin reached 30.8% along with the rise of gross profit margin. This is a graphic representation of financial summary that explained earlier in the slide. This slide shows the segment information. For SPE, we generated sales of JPY 488.8 billion. As we sold every SPE product family steadily in the growing market, SPE sales increased from the prior quarter. Segment profit margin was also high at 34.9%. For FPD, the sales was JPY 17.6 billion and segment profit margin was 11.3%. The composition of net sales in the third quarter remained unchanged from the previous quarter. The SPE sales accounted for 97%, while FPD sales accounted for 3%. This slide shows SPE sales by region. Sales in China and North America mainly showed a growth. For China, sales in the third quarter reached a very high level as the emerging local China customers increased their investment. For North America. Our sales have been increasing, driven by the investment to logic devices. This shows SPE new equipment sales by application. In the third quarter, from the bottom of this chart, sales to logic manufacturers accounted for 50%, non-volatile memory accounted for 19%, and DRAM accounted for 31%. Sales in every application increased from the previous quarter. DRAM sales expanded since the customers maintained active investment, along with recovery in DRAM market, which started last year. For NAND, there were some adjustments because of the intensive investment in the first half of the year. However, we continuously received active inquiries. This slide shows field solution sales. In the third quarter, sales amounted to JPY 116.1 billion, maintaining a high level. Sales declined from the previous quarter, but this is because sales of modification, which showed a considerable growth in the previous quarter, came back to a normal level. We can see steady progress continuing in parts and service sales. Next, this slide shows balance sheet. The total assets were JPY 1,724.3 billion. Cash and cash equivalents were JPY 423.9 billion. The accounts receivable and contract assets were JPY 280.4 billion. Inventories were JPY 440.1 billion, showing a significant increase from the previous quarter, driven by implementation of our proactive procurement and production strategy designed to cope with the future sales plan. Liabilities were JPY 507.2 billion, mainly due to the increase of current liabilities, including customer advances. Net sales were JPY 1,217.1 billion. The equity ratio was 69.9%. This shows the inventory turnover and accounts receivable turnover. The inventory turnover was 86 days, remaining unchanged from the previous quarter. The accounts receivable turnover was 55 days. My last slide shows the cash flow. The cash flow from operating activities was JPY 114.6 billion. Cash flow from investing activities were minus JPY 13.5 billion. The cash flow from financing activities was minus JPY 100.7 billion. This is due to the payment of the dividend, mainly. The free cash flow was JPY 101.0 billion. This concludes my presentation of our consolidated financial summary. Now, Mr. Kawai will present business environment and financial estimates. Mr. Kawai, please. Once again, good afternoon. I am Kawai. Now I'd like to make a presentation on business environment and financial estimates. Let me start with the business environment. For wafer WFE market in calendar 2022, following the trend in calendar year 2021, driven by strong semiconductor demand, along with the progress of digital shift in the society, such as data center, investment to broad range of generations from leading edge to mature nodes is expected to continue. We see that WFE market in 2021 grew significantly by almost 50%. We expect WFE market in CY 2022 has additional growth potential of nearly 20%. For the FPD fabrication equipment, TFT array process market, CY 2021 was transition period as expected, shifting from LCD to OLED. The investment declined by around 20% on a year-on-year basis. In CY 2022, the slight increase is expected in the investment on a year-on-year basis due to the investment driven by new applications such as automobile and adoption of new technology for mobile application. The transition to OLED starts with small-sized panels and is expected to expand to larger size panels. Next, I will talk about the WFE market outlook by application for calendar year 2022. For logic and foundry, WFE spending is expected to grow more than 20% on a year-on-year basis, as active investment will be further enhanced both for leading-edge node and mature node, along with the expansion of application. For DRAM, growing demand for 5G mobile and data centers, as well as capacity enhancement for DDR5, will drive a high level of investment, and WFE spending is expected to increase by around 15% on the year-on-year basis. For non-volatile memory, along with the expansion of SSD applications, WFE spending is expected to be strong, increasing by about 5% from the previous year. This slide shows the key technologies by device for the five years to come. For logic, High-NA EUV lithography, gate-all-around nanosheet, and backside PDN, in which the power delivery network is placed on the backside of silicon, are expected to emerge. For NAND, multilayer stacking structure with more than 300 layers from the current 170 layers, and innovative technology in which memory cells and peripheral circuit fabricated on different wafers are bonded together, are expected to be adopted in the future. For DRAM, scaling of planar structure devices will advance, while 3D DRAM is expected to emerge. Our wide-ranging portfolio covers all these key technologies, and we expect a huge business opportunity. We aim at expanding our share in these high value-added areas. This shows business progress in the third quarter of fiscal year ending in March 2022. As Mr. Nunokawa reported earlier, in the third quarter, net sales, gross profit, and operating income renewed our records. Amid severe circumstances where we suffer from shortage of various components and materials, including semiconductors, our proactive procurement and production strategy designed to address future market growth contributed to the sales growth. In order to agilely address all production-related challenges in terms of safety, quality, environment, and supply chain, we established the Corporate Production Division in September 2021, which has strengthened our capability. For our strategic products, we can see steady progress in PORs and tool selection. In addition, in the third quarter, we released Tactras-UDEMAE etch system for power device, including automotive semiconductor devices, to enhance their productivity, as well as Impressio 2400 PICP Pro, equipped with PICP Pro, a new chamber for high-resolution large-size display. It has become more likely to achieve the mid-term management plan ahead of its original target timeline. We keep focusing on mid- and long-term growth. Next, I will present the financial estimate for fiscal year ending in March 2022. By reflecting the result up to the third quarter and taking account of the actual demands that I presented today, we have revised the financial estimate upward once again. Compared with the financial announcement in November 2021, on the full-year basis, net sales has revised to JPY 1.95 trillion, increased by JPY 50 billion. Gross profit will be JPY 884 billion, increased by JPY 23 billion. Operating income will be JPY 570 billion, increased by JPY 19 billion. Net income will be JPY 416 billion, increased by JPY 16 billion. The full-year operating profit margin is expected to be 29.2%. All of net sales, gross profits, and operating income are expected to hit the record high. This slide shows the SPE new equipment sales forecast in the fourth quarter. Thanks to the strong inquiries from leading-edge logic foundry, we project SPE new equipment sales of JPY 390 billion, which renewed our record on the quarterly basis. The SPE new equipment sales from January to December 2021 amounted to JPY 1,385.9 billion, recording about 60% growth from the previous year. As expected, we were able to outperform the WFE market growth rate. In CY 2022, we will make continuous effort aiming at outgrowing the WFE market. This shows our plan for R&D expenses and CapEx. The plan remains unchanged, though there might be some differences due to the timing of asset acquisition. For fiscal 2022, we plan to expend R&D expenses of JPY 165 billion and capital investment of JPY 64 billion, both of which are expected to hit the record high. We project depreciation expenses of JPY 43 billion. We will accelerate proactive R&D and capital investment to cope with growing market and diversified needs for leading-edge technologies. Next, this slide shows dividend forecast. Based on financial estimate for this fiscal year and payout ratio of 50%, we have revised the forecast upward. We plan to pay full year dividend per share of JPY 1,336, which is expected to set a new record. We are honored to receive Grand Prize in Corporate Governance of the Year 2021 sponsored by the Japan Association of Corporate Directors. Stimulated by this prize, we are determined to leverage our expertise as tool manufacturer and pursue semiconductor technology innovation in order to continuously meet the expectations of the capital market. By contributing to the balanced achievement of digital and green, which constitute the shared value in the society, we'll make dedicated effort to expand mid- and long-term profit and continuously enhance corporate value. This concludes my presentation. Thank you very much for your kind attention. Now, let's move on to the question and answer session. I'd like to take questions until 6:00 P.M. Japan time. Questions will be accepted both in Japanese and English, but the speakers will be available on the Japanese channel, so all your questions will be limited to Japanese. If you ask questions in Japanese, please press the Raise Hand button on your Webex. For details, please refer to the instructions attached to the invitation email. I will call the name of a person who asks a question one by one. Our secretariat will contact you in advance, so please check the Webex chat box. For questions in English, please use the Webex chat box to enter your company name, your name, and your question in text and send it to our secretariat. We will refrain from answering questions that are not with your company name or your name. In the Japanese channel, we will translate your English question and read it in Japanese, and the speakers will answer to the questions in Japanese. In the English channel, the question and answer will be broadcast live with simultaneous translation. In Japanese channel, we'll take one question per person and one follow-up question. In English channel, since we take questions by text, we take one question per person without follow-up. If there is more time, we'll take additional questions. The first question is from Mr. Yoshida of CLSA Securities Japan. Thank you very much. I'm Yoshida of CLSA Securities Japan. The first question is about WFE market. This time you came up with very strong prospects for 2022. It is habitual to say that if you can see 2023, do you have any direction or some idea for 2023? Overall market trend and by applications as well. What sort of market would you see in year 2023? Thank you. For this year, 20%. I just explained earlier, 20% growth is expected. In answer to your question, next year as well, we can see very strong investment continued. That is our expectation by and large. Maybe positive direction might be expected than this year as well. In particular, the drivers should be digital shift. The digital shift is very strongly growing, therefore leading-edge logics, foundry area, as also the commodity areas as well. We can see continuous investment going on next year as well. Therefore, along with the digitalization, leading-edge logics, and also the legacy nodes. Both generations will become driver so that we can see the strong investment also in year 2023. What about memory for 2023? For 2023, the memory, the total memory, it's too early to say something decisive, but memory as a whole may remain almost unchanged in 2023. However, logic might be stronger, maybe. As for this year, DRAM, DDR5 investment is being conducted. For 2023, I don't know to what extent that investment continues. Memory as a whole in the market, very similar figure might be expected for 2023 to 2022. Thank you very much. My follow-up question is about the new equipment sales for this year. For NAND compared with last year, about JPY 400 billion revised downward when I calculate from the composition ratio. Is that just because of customers' adjustment to the shipment? Or this morning, some manufacturer announced the contamination in their production area. Does that affect the value for NAND? Could you share your idea, please? Nunokawa answer to your question. For NAND, new sales for NAND application compared with the previous forecast, our prospect is declined. Your question is asking why this kind of decline takes place. As for that question, partially, NAND customers are now reviewing their investment. That has some impact on this figure. We are now reviewing the figures. The review is incorporated. Thank you very much. Customer investment plan is not reviewed so much, so there are some differences or shift. Memory, as far as memory is concerned, very strong value will continue. As I said, 2023, that might be follow-up to your earlier question, 2021, maybe at the same level of 2021 is expected for 2022 and 2023. In addition, digitalization will drive the logic investment as well. That's what will happen or expected for this year and next year. Thank you very much. Mr. Yoshida, thank you very much for your question. Next question is from Mr. Nakamura of Goldman Sachs Japan. Thank you very much. I am Nakamura of Goldman Sachs Japan. American tool vendor was suffering from the shortage of the components and parts, and I think they are affected seriously. But what about you? Does that affect your performance as well? The inventory, semiconductor inventory, and other parts and components, distribution and logistics, we are facing tight situation. As for the challenges, we closely watch the situation to come up with optimum management, which is necessary for us. We have been talking about big years. From big customers, investment will continue in a steady way. That's what I said so far. Including that, we need to enhance the efficiency. We try to promote the leveling of the production by having the sufficient components and parts. We are taking proactive actions to take care of the supply chain in order to address the strong demands. The efforts are now delivering some results, positive results. In the future, many things or various things might happen. For example, one component is now running short of all of a sudden. Now we have Corporate Production Division so that we can have the agile and appropriate action for the future potential shortage by finding some alternatives or commonizing or unifying the components. We need to do those things to take care of the potential shortage of components. In September last year, we established the Corporate Production Division, and that Corporate Production Division is now making every effort to take care of the issue. We are holding regular review as a whole group of TEL. This is how we try to address our customers' demands properly and satisfactory. As we said earlier, we have been holding production update briefings, which is held every six months, and we are going to hold this kind of review meeting every six months in the future as well. One follow-up question. The WFE market 2022 is expected to grow by 20%. This is your forecast you mentioned today. When it comes to the capacity, is it possible for you to address this kind of growth trend of the WFE market as well as your capacity is concerned? Yes, our production capacity is sufficient. Supply chain, there might be some clogging or shortage of the issues. Components, are there any? As for the feasibility, visibility, do you think you can enhance the capacity? Yes, there should be no problem. Very high inquiries are now being received from the market, and we are making every effort to be prepared to meet our customers' expectations and orders inquiries. Thank you very much for your answer. Thank you very much. Mr. Nakamura, thank you very much for your question. Next question is from Mr. Wadaki of Nomura Securities. Thank you very much. The first question, now market is expanding rapidly, and compared with your competitors, TEL is achieving high performance. What is the reasons for your high performance? Of course, your management is excellent, that is the major reason, but you don't have to be humble. Please let us know the major reason for your high performance? There are quite a few positive messages. Thank you very much for your positive messages. Thank you very much for the compliments. The first thing I want to say is the market trend. We are taking proactive actions to address the expanding market by collecting components and parts, so we are well-prepared. We have been well-prepared to address the growing demands, and that delivers the good results. That's the first thing. Another thing I should point out is strategic products. The penetration of our strategic products, not only process of record, but also the penetration is now increasing steadily, contributing to the enhancement of the market share. Etching in the etch market, for example, the slit process, for example, for cleaning, pattern collapse prevention process is a kind of supercritical drying technology. Film deposition, several applications are now being addressed, and we are taking some PORs. Those technology for strategic products have been innovated very steady. These two are major wins. Number one is we are well-prepared to address the customers' growing demand by satisfying customers' demand for deadline. Number two is the share expansion. These two are the major drivers for our high performance. Thank you very much. My follow-up question is about your high-margin activity, and you are doing well with the strategic products. In certain conference, Samsung said Samsung will focus on the selective film deposition and low temperature etching and atomic layer etching. According to your activities, how is your competitiveness in those key technologies? Specific customer comment, I'm not able to give you some detailed answer. On the other hand, as for the issues, technologies you just mentioned, those three technologies are very critical technologies for us. So for those technologies, we are conducting evaluation activities together with our customers, and that evaluation is going on very steadily. Thank you very much for your answer. Mr. Wadaki, thank you very much for your question. Next question is from Mr. Hirakawa of BofA Securities. I am Hirakawa of BofA Securities. I'm interested in investment in China. So first question is 2021 WFE market. What is the proportion of China customers within WFE in 2021, and what sort of growth would you expect in year 2022 in terms of China customers? And I have also a question, a follow-up question later. As for the WFE investment in China, last year, this year, it's about around 25% for China out of the total WFE market. The last year and this year, the local China customers and others, it's a bit difficult for me to show you any comparison. We need to avoid that answer. 25% in total WFE market, and this year it's about 80% for this year. Sorry, 2021. 2021 and 2022. It's about 80%. About 80% out of 25% are composed of the local China customers. Yes, about 80%. Almost the same as the WFE market growth. Is that correct understanding, the local investment in China grows along with the entire WFE market? Yes, that's correct. My follow-up question is about your previous business model. You are now focusing on leading-edge technology to provide high value-added technology to enhance the high profitability, pursue profitability. I think the Chinese local customers, China customers, are focusing not only on the leading-edge technology, but also the legacy products. There are small companies, and they are very active, even they are very small in size. According to last year's results, you are achieving high profit margin for the legacy node as well. What kind of product do you sell in China? And what kind of competitive landscape against Chinese SPE manufacturer do you see? Maybe in two years, in three years' time, are going to see some changes in the competitive landscape in China. Do you have any focus for the future trend of the competition in China? Tokyo Electron, ever since our foundation, we have been specializing best product and best services. That's what we always have in our mind ever since our foundation. Regardless of the generation or device nodes, high value added, that means number one performance. For example, the productivity per unit area, or the high uptime ratio, and particle reduction technology should be important to enhance yield. That sort of needs are common throughout all generations. To come up with the highest performance in certain node, the equipment, it will be selected, so engineers or our customers and who select our product. Performance comes first, regardless of the device node. Performance is very important, and highest performance equipment will be selected by our customer engineers. One thing, leading-edge node, best product, it's quite easy to understand best product in terms of throughput or yield. But when it comes to legacy node, it's difficult for you to differentiate your product from others, I thought. Even now, even for the legacy node, your products differentiate it from competition. Not only China, but also other market, you are making profit even in the legacy node market. Is that correct understanding? Yes, as I said in my presentation earlier, I talked about UDEMAE new product. We released UDEMAE product that's based on the Tactras platform that is for the automotive power devices, for example. This is the 300 mm equipment utilizing the process library developed based on 200 mm experience. Wafer bevels the edge portion wafer, and you can suppress the particle generations by using this system. Wafer temperature and the pressure within the reactor and gas flow rate and the RF power source, all those technologies are well-controlled in a balanced manner. These are the functionality to support the customer's productivity and tool uptime and yield enhancement. That product help customers in those area. That is the reason why customer value the product, and we can provide high-value added product. UDEMAE is a future promising product. Maybe year 2023, I think the UDEMAE will become the major trend in the market. That's one of the examples of our high-performing products. Thank you very much. Mr. Hirakawa, thank you very much for your question. Next question is from Mr. Ishino of Tokai Tokyo Intelligence Laboratory. Mr. Ishino, please. I am Ishino from Tokai Tokyo Intelligence Laboratory. Can you hear me? Yes, I can hear you. Thank you very much. My question is about WFE market. Now it is showing very rapid growth this year as well, and you outperform the WFE market growth rate. That's what you said. What sort of area you can expect increase of share, market share? By application, maybe could you share your idea with us about the future share increase? Thank you. As Mr. Wadaki asked that question, and I said very similar things, to what I'm going to say. For etching, 3D NAND, slit process, and supercritical drying, the cleaning and drying technology, and logic memory, the film deposition for logic and memories, and advanced packaging area, coater/developer will be adopted, applied. There are various applications increasing right now. I just talked about typical or representative things. Diversification is going on in technology. Each product BU does have quite a few key technologies, and those we are taking care of this kind of growing market. That's the reason why we succeeded in outperforming the market growth rate. Thank you very much. My follow-up question. Last year, you achieved very high growth rate, and this year as well, and maybe 2023, you can expect another growth year. From your viewpoint as a president, what sort of data are important for you? Digital shift is the word you mentioned in your presentation, but what sort of. For example, capital investment, what metaverse, for example, the buzzwords. What sort of indicators, as a president, you are watching closely as the leading indicators in the semiconductor market? Technology or semiconductor for digital and green, the most important thing is semiconductor technology innovation, higher performance, high capacity, low power consumption, and high reliability, as well as high speed. Those areas are required to be achieved. In that sense, by and large, the logic area, DRAM area, 3D NAND area, in those areas will drive technology innovation most. At present, the evaluation is now being conducted concurrently for multiple generations. There might be some difference from one generation to another, but we are conducting multiple generation concurrent evaluation of tools. In the years to come, High-NA is being introduced for logic and new resist material, coater/developer, and etching process, etch process technology, as well as packaging requires higher productivity and yield by introducing new production technology and gate-all-around nanosheet. Plasma etching will be necessary and also gas chemical etching, and we need to establish the cleaning without any pattern collapse. Backside PDN introduction and new metal film deposition and bonding technologies are the key technologies for the logic side. For 3D NAND, in my mind, more than 300 layers, multilayer stacking or high aspect ratio etch rate and profile control should be pursued in parallel. Film deposition, film quality, and gap fill characteristics, as well as bonding technologies, they are important. As for DRAM, EUV lithography has been introduced, so high-level patterning technology is very important. In 3D DRAM, we need to start evaluation towards 3D DRAM. The semiconductor technology roadmap should be the basis, and we always look at those areas to find out the technology with high value added the customer needs in the future, so that we can deliver those high value-added product to the customer when customer need it. That's where we focus on. Thank you very much. Thank you very much for your answer. Mr. Ishino, thank you very much for your question. Let's move on. Next question is from Mr. Yamamoto of Mizuho Securities. Mr. Yamamoto, please. I am Yamamoto of Mizuho Securities. Thank you very much. I have one question. Now, Mr. Kawai, you talked about the logic and foundry. Logic, you said investment will be increased next year, both for legacy and leading-edge nodes. Could you share with us about the background? For example, the customer capital plan is designed that way, or you are now analyzing the balance of the demand and supply for the legacy and mature node. You came up with that conclusion. What is the background of your idea? Based on the customers' inquiries, I'm sharing. Through the dialogue or conversation with our customers, and based on that, we just set the... On the other hand, your company is very strong in coater/developer, and I think you can tell the trend in the market because you are Tokyo Electron. I think you can do some analysis, maybe even Applied cannot do that. I think Tokyo Electron can do that. Do you get some specific information to support the customers' inquiries? Have you come up with some internal analysis results which support customers' inquiries? Yes, there are various things. However, the customers' inquiries, not only customer inquiries, but also many other information are acquired. We are looking ahead by referring to the future roadmap and also exchange information with customers. These are the sources of information, along with digitalization, the strong logic investment is expected to going on. Every country, so they need to purchase things within their own domestic market. The legacy node investment is expected to continue. Thank you very much. That's all from me. Thank you very much. Mr. Yamamoto, thank you very much for your question. Next question is in text. Let me just read out. Mr. Damian Thong from Macquarie Securities. Backside power delivery is increasingly important for Tokyo Electron and your competitors in 2023 and 2024. What sort of impact does that have on the tool demand? Mr. Yatsuda, could you answer that question, please? Sure, certainly. We are at the stage of development. As for the generation or node, 3 nm, next to 3 nm, the PDN is expected to be introduced from 2023 to 2024. That PDN will not have so much big impact on 2023 or 2024. We just expect the future market of 2025 and beyond. We can expect some business opportunities in year 2025 and beyond. That business opportunity is film deposition of the new materials. The metal materials with low resistivity are expected to be introduced, and also bonding technologies will become necessary. As far as TEL is concerned, we have the bonding technology to be provided for the CMOS image sensor, and we are selling that bonding technology to CMOS image sensor customer. That is our strength, and we can leverage our strength in that area. Mr. Damian Thong, thank you very much for your question. Next question is Mr. Shimamoto of Okasan Securities. Thank you very much. I am Shimamoto of Okasan Securities. Thank you very much. My question is about your plant utilization. If you. Could you share your idea with us about the utilization of your plant? Now your quarterly sales exceeded JPY 500 billion for the first time. What is the production capacity for the increase in sales expectation? We are very close to full operation or utilization of the plants. When it comes to capacity, we do have the sufficient space for future expansion. Against market growth, we are prepared to address the growing market trend properly. But our plant utilization ratio is close to 100%. I'm sorry, I didn't answer your question properly. Could you rephrase your question, please? Your plant utilization, let's say you said close to 100%. That's maybe what I can learn from your answer. I want to understand plant utilization and against quarterly sales, the maximum capacity. What sort of sales can you achieve with the maximum capacity? The balance between resources and space. From the viewpoint of the resources and space, for a few years to come, we are prepared for the future growing trend. In that sense, we do have sufficient space and resources. However, from the customers, we do receive inquiries from customers. Some of them require low lead time. It's very short delivery lead time. In that sense, the utilization rate is close to 100%. But as far as plant production is concerned, we do have sufficient room for space and resources. For the human resources as well, in many senses, efficiency is to be enhanced furthermore according to a plan. As I said earlier, proactive co-procurement strategy will help us to enhance the efficiency so that we can ship things right away after we do have the components production available. There are maybe in the future, we may see long delivery time components, but we do have some critical components and parts. In such a case, we need to enhance the manpower. As for the recruitment, not only for this year, but also long-term range plan is to be prepared for the future recruitment to secure the sufficient amount of human resources. For space wise, we do have sufficient space, and now we are working on the full capacity. When I say full capacity, that means we are ready to adjust to the, or cope with the customers' inquiries variation. That's a bit different from capacity utilization ratio. I have follow-up question. You don't share the orders now, but from orders to sales, I wonder what is the lead time? You said some tool vendors said their lead time gets longer from order receiving to the shipment, but what about your case, your company, in terms of the lead time from orders reception to shipment? I am Nunokawa. Let me answer to your question. There are two types of lead time, the lead time from order reception and production lead time. Honestly speaking, for order reception lead time. The timing of customer order placement. Compared with the past, our customer tend to place orders more in advance. In that sense, the order receiving lead time gets longer for us. When it comes to production lead time, lead time for production from when we start production till the completion of final products, that we are proactively procuring components and parts, and that proactive strategy supported us. Of course, we are working very hard, but basically, we do maintain good production lead time. We have been reducing production lead time little by little for years. We don't see any prolonged lead time production at all. I hope I answered your question. Thank you very much for your very thorough answer. Actually, as long as we do have all the components available, we can quickly produce our product right away. Timing of taking order from customer is now getting earlier and earlier, just like other competitors. We do have some If customers place orders with certain time lag, then simply speaking, it make the lead time from the order reception to shipment gets longer, but our production lead time does not get longer. Thank you very much, Mr. Shimamoto, for your question. Next question is from Mr. Hasegawa of Mitsubishi UFJ Morgan Stanley Securities. I'm Hasegawa of Mitsubishi UFJ Morgan Stanley Securities. I am going to ask you about the field solution business. The modification sales was decreased from the second quarter to third quarter. Is that because a round of the high demand of the modification come to the end? That's the first question. Parts and service sales has been increasing. When you think about the installed base, size of installed base, I think the parts and service demand will be increasing furthermore. Do you think your parts supplier are ready to address the increasing demands of the parts in the future? Thank you very much for your question. You asked about the field solution business. Let Nunokawa answer to your question. As for the modifications, the volume of modification, you said that modification demand is now complete one cycle, and you also asked about the future forecast. Honestly speaking, the modification, it's so difficult for us to project the future volume of modification demand. The new equipment is hard to be obtained. In such a case, the customer want modifications. But in some cases it's difficult to obtain, acquire modifications. The modification sale will not continuously increase. In the second quarter, previous quarter, we did have the high volume of modification business. Because of that, the after-sales solution sales in Q2 was rather high because of the high modifications. As for other than modifications, the parts and service business, as you said, our parts and service business is now progressing steadily, and we can see steady increasing trend for the future. On the other hand, components and parts, the global worldwide parts demand is increasing, and procurement of parts and components. We should exchange information and share information with the suppliers, and we have done such kind of information sharing with the suppliers. We do have inventory. The amount of inventory, as I showed in balance sheet, inventories increased a little bit, as I said earlier in my presentation. I didn't touch upon any detail, but in the inventories, the parts inventory has been increasing. That we can take care of the future issue, the parts shortage should not affect our shipment, so we take productive action so that we can secure the sufficient amount of parts. Let me add some more comments. Market is growing and customers' fab construction plan is expected to increase in the future. The number of shipment of tool will be increasing, so macroscopically. Quarter-to-quarter basis, there are some ups and downs. We cannot tell what happens, but macroscopically, I'm sure we can see the steady increase as an overall trend. Everything goes connected to IoT, and now we can see emerging applications, and semiconductor devices will be mounted in various areas. Let us note, semiconductor demand is really strong from the market. The wafer area. 70% of wafer area is used for the legacy node semiconductor devices. If you think that kind of trend, field solution business, the modifications, upgrade, as well as relocation. Those kind of business are expected to increase or grow steadily and continuously. Quarter-to-quarter variation might take place, but when you look at the overall picture, you can see the steady increase, and strong increasing trend is expected for field solution business. I have one follow-up question. For parts or consumables, so how to think about demand for consumables? 2030, so maybe the semiconductor device market is doubled in 2030, but when it comes to the demand for parts or consumption of components, do you think almost comparable to the WFE market? For example, per wafer, the component will be increasing per wafer or the parts consumption per wafer remain unchanged. What is your idea? For example, plasma system. Components replacement should take place more frequently than before. I wonder, I don't know, but that may happen. Because of that trend, how would you support the suppliers to prepare the increase of the demand? And how often do you share the information with customers? The suppliers' CapEx plan is now announced from time to time. How would you prepare for the future trend? Yes. Clean room per clean room, productivity per clean room, including consumable replacement. We do have some indicator, and every company does have some indicator to enhance productivity as much as possible. Our company as well, we should provide high value-added technologies from the viewpoint of the productivity per unit area. That's the value for the customer. By and large, we try to pursue the best performance as a whole. As I said earlier, we are conducting four-generation concurrent evaluation. For each device node, how much productivity can be achieved? From the very starting point of the development evaluation, we try to design in the productivity enhancement. For plasma, maybe the consumable replacement should be reduced as much as possible, or automatic replacement of components might be another approach to address the problem. We are discussing many possibilities. I hope I answered your question. Each individual component, it's difficult for me to answer your question. These are the overall efforts that we are making. Thank you very much for your very thorough answer. Mr. Hasegawa, thank you very much for your question. One more question we want to take, although it's time. Mr. Shibano of Citigroup Global Markets Japan. I'm Shibano of Citigroup Global Markets Japan. Let me ask the first question. Today you have announced the revised version of the full-year sales forecast. When I look at the third and fourth sales, I can see some flat or slight increase from the third quarter to the fourth quarter. When you look at the shortage of the components, you might think this is a good management of the production. When you look at the previous normal seasonality, your sales in third and fourth quarter tend to increase. Against that seasonality, now you can see the flat or slight increase from third quarter to fourth quarter. Does that mean you are still suffering from the shortage of these components? Or you are now trying to introduce leveling of the production? Is that the reason for this trend? Or if you secure the sufficient amount of component, is there any rooms for you to further increase your sales in the fourth quarter? All of those issues you mentioned, we are now considering all of the things when we report our values. The production leveling should be conducted, and we are proactively procuring components to contribute to the leveling of production, and also shipment based on the new revenue recognition standard. When you ship the product, our capacity, current capacity should be considered. Based on that consideration, we came up with this forecast. This is a kind of realistic viewpoint, which is appropriate to be announced externally, publicly. Thank you very much. I have one follow-up question. In your presentation, you said CY 2022 WFE market expected to grow by 20%. 2023, you said the 2023 WFE market is also in growing from 2022. There's some difference from fiscal year and calendar year. If 2022 calendar year, if the WFE market increases by 23%, what will happen to the sales in the? Your fiscal year ending in March 2023, you said you are going to perf-out. Do you think you can expect to outperform the WFE market? Even if your sales increase by 20% or 25%, either way, if the sales increases furthermore, the gross margin or operating profit margin, when you look at those profit margins, when you think of external restrictions or market restriction, would you expect further increase of profit margin? Or if you maintain the current profit margin, would you say that is the satisfactory results? Is that what you? I want to understand your current idea for that. Thank you very much for your question. We always think we need to focus on our core competence, and we provide the products that customer need. We are focusing on the growing market area, and we try to make proposal to the customers, one after another, digital and green. We should pursue those two targets, grand goals. Semiconductor technology innovation should be pursued to provide high value added products. Once again, let me just repeat, the digital green, which is the shared value in the society, we'd like to make every contribution to that, by which we want to enhance the midterm, long-term profitability, and we want to pursue the enhancement of the corporate value furthermore. This is how I can answer to your question. Of course, we want to pursue further growth. The entire management team is determined to work very hard for the growth. Thank you very much, Mr. Shibano, for your question. Thank you very much for many questions, but it's time for us to close today's session. For those questions we are not able to answer, we are going to follow up the questions we could not answer today on our website in a few days. Lastly, we'd like to continue to improve our IR activities based on your feedback. 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