Hello, investors. Thank you very much for waiting. Thank you very much for joining financial reporting conference for the 4th Quarter of FY 2022 of Daiwa Securities Group. Let's start. Welcome today, we have Sato from Daiwa Securities Group, Executive Managing Director and the CSO. I am Mishiba of IR, serving as a facilitator today. Today, Mr. Sato will start with a presentation of the results from Q4 of FY 2022. Then we will take the questions. Please be reminded that this call is also arranged accessible for investors on the internet. Okay. Let's start. I am Sato of Daiwa Securities Group. Thank you very much for joining our conference call today despite your busy schedules. Today, we released our financial results of Q4 FY 2022. I will now explain the result with referring to the earnings announcement material which is available on our website. Please turn to Page 4 for consolidated financial summary. The percentage of change is a comparison to the Q3 FY 2022. The net operating revenues were JPY 125.7 billion, up 3.4%, and ordinary income was JPY 30.8 billion, up 33%. Retail division is shifting to wealth management business model and made a progress in cost reduction, resulting in ordinary income of JPY 6.2 billion. In the wholesale division, global markets reported a revenue decline due to financial instability originating in the U.S. and Europe, while global investment banking reported an increase in M&A-related commission, resulting in an increase in both revenues and the income. The net income attributable to owners of the parent was JPY 17.1 billion, up 12%, and annualized ROE was 4.9%. Year-end dividend is JPY 12 per share. Combined with interim dividend of JPY 11, annual dividend is JPY 23. Payout ratio is 52.8%. As a part of capital policy, share repurchase is set at up to 35 million shares or JPY 25 billion. Now please move on to Page 10 for P&L summary. Commission received was JPY 72.8 billion, up 4.7%, and its breakdown is on Page 23. The brokerage commission was JPY 16.3 billion, down 1.8%. Underwriting commission was JPY 8.8 billion, up 15.7%. Distribution commission was JPY 2 billion, down 19.7%. M&A-related commission was JPY 1.9 billion, up 57%. Net gains on trading dropped by 37.8% due to FICC revenue decline. Other operating income and other operating expenses increased due to the transfer of real estate by the investment division and the group companies engaged in property business such as Daiwa Securities Realty. Other operating income increased mainly due to Daiwa Next Bank and gains on the property sale. Let me move on to Page 11 for SG&A. SG&A was JPY 101.8 billion, up 1.9%. For personal expenses, performance-linked bonuses rose. For office costs, system-related outsourcing fees increased. Is on Page 13 for overseas operations. The ordinary income totaled JPY 5.5 billion, down 11.4% from the previous quarter. Europe gained revenues from ESG-related funds, DC Europe, and Green Giraffe, recording JPY 4 billion of ordinary income. Asia and Oceania enjoyed M&A revenue growth as well as SG&A reduction, resulting in revenue increase. Americas had M&A revenue growth, but market turmoil in Europe and U.S. had negative impact. FICC revenue dropped and the region's revenue fell. Next is segment information. Let me start from retail division on Page 14. Net operating revenues were JPY 40.5 billion, down 3.9%, and ordinary income was JPY 6.2 billion, down 12.4%. Equity revenues increased with the growth of sales commission tied with underwriting deals. FICC revenues dropped as foreign bond yields shrunk. Investment trust distribution commission revenues fell due to the decline of sales amount of equity investment trust. Asset-based revenues were JPY 20.2 billion, accounting for 51.2% of the net operating revenues in retail division. Please turn to Page 15 for sales and distribution amount by products of retail division and our topics of the quarter. Equity distribution had a significant increase with Japan Post Bank's global PO, the largest PO of this fiscal year. As for wrap account service, the contract AUM exceeded JPY 3 trillion, hitting record high of JPY 3.954 trillion. The graph on the left down below shows sales and distribution amount of wrap and equity investment trust. Yearly increase ratio was 17.2%. Let's move on to Page 16 for wholesale division. Starting off with the global markets. Net operating revenues were JPY 25.1 billion, down 9.9%. Ordinary income was JPY 0.1 billion, down 13.6%. Equity revenue slightly declined on the back of lower customer flows. FICC revenues also decreased. In Japan, revenues increased driven by JGBs and increase in their customer flows. In overseas, revenues declined due to the impact from the financial disturbance coming from the U.S. and Europe, please turn to Page 18. This page is on the global investment banking. Net operating revenues were JPY 18.1 billion, up 22.9%. Ordinary income was JPY 3.2 billion, up 68.1%. Revenues from equity underwriting business increased as we accumulated the track record of lead manager mandates such as for Japan Post Bank, the largest PO mandate this year. In the debt underwriting business, we accumulated the track record of serving as a lead manager for many mandates such as for Vaxine Group owned and so on. Group M&A-related income, including M&A and other income and e-income of equity method affiliates such as Green Giraffe, the M&A house, in the areas of European renewable energy was JPY 15.6 billion. Please turn to Page 19. Let me next explain the asset management division. Net operating revenues were JPY 17.5 billion, up 1.7%, and ordinary income was JPY 11.9 billion, which was up 13.5%. Daiwa Asset Management net revenue and income went down due to a decline in AUM or public equity investment trust, excluding ETFs associated with the drop in the market values, even though we secured positive net capital inflows. With regards to the real asset management, revenues and income were record highs. Income increased thanks to equity investment profits of Daiwa Office Investment Corporation and Samty. AUM of Daiwa Real Estate Asset Management increased. Please turn to Page 21. Let me explain the results in the investment division. Net operating revenues were JPY 7 billion, up 85.9%, and ordinary income was JPY 6.5 billion, up 432.2%. Daiwa PI Partners achieved revenue increase from private equity investments and investments in monetary claims. With regards to Daiwa Energy & Infrastructure, income increased due to exits of renewable energy investments. This completes my explanation of the results in the fourth quarter of FY 2022. FY 2022 was the turbulent year for stock market and the financial markets when there have been so many storms happening in complex ways such as Russia invasion into Ukraine, global inflation, shift in monetary policy, and rapid weakening of yen, correction of BOJ's monetary policy and financial crisis in March from the U.S. and European, so forth. Global markets and global investment banking, asset management and investment divisions offset the stamina performance in Global Markets Division and the Retail Division showed highly stable performance. We are committed to continue our efforts to promote the shift to wealth management business model, pursuing the best interest for our customers and contribute to realizing the rich society by offering more alternative investment opportunities. Now looking at what's happening in April, there are still uncertainties ahead, and our goal is stepping up of the stock market. We are off to a very good start. In the retail division, investor sentiment is gradually improving and the progress of sales of stock investment trust, conduit and foreign equity transaction is outpacing the average of Q4. In the market division, equity income is on the recovery. In investment banking division, we served as a lead manager for a large IPO deal, and M&A business is off to a good start. COVID is now behind us in Japan, and the reopening is accelerating. We are at a turning point now from the deflation, which continued for about 30 years, which is a tailwind for securities business. We are committed to continue our efforts to promote the shift to wealth management business model, pursuing the best interest for our customers and contribute to realize the rich society by offering more alternative investment opportunities, meeting wide range of customer needs via strong getting hybrid business. I appreciate your continued support and cooperation to us. Thank you so much. That's the end of the presentation. Let us open for Q&A session. Today's conference call has simultaneous translation service, so the English speakers can also participate. For those of you who have questions, either in Japanese or English, press one. To take that question off, please click star and two. Today's Q&A session will start with the Japanese line first. After that, we will move on to the English floor. Please ask your questions when your name is called. Now we are going of getting the questions from the floor. First question comes from SMBC Nikko, Muraki-s an. Mr. Muraki, please go ahead. SMBC Nikko, Muraki, is asking two questions. One is about the fixed income. The fixed income performance or the income. You said that domestic business is okay. Because of financial instability in March, the overseas is struggling a little bit, I think. That's what you said in the presentation. Within this quarter, what kind of movement you have seen, what kind of dynamics there were? Can you give more color on this? Second is about you have the reserve for the transaction of the financial products, you have added the reserve by about JPY 600 million. You have added that reserve because to prepare for that instability. The first question is about the effects. Also the next question is about the ROE improvements. When you are talking about the improvement of the ROE, I think the initiatives have been taken, especially for the current year. Are there any areas of focus? If you could share your points, I would appreciate it very much. Muraki-san, thank you for questions. To answer your first question about FICC. I think the monthly reporting will be probably easier for you to look at, also we separate the answers for domestic and overseas. First of all, about the performance of the FICC for the three-month period, I would say, 60% in January, 30% in February, 10% in March, it was very slow in March. For domestic, the first two months, the JGB and the domestic credit, there was much expectation for the Japanese interest hike, so that the trading was quick because the customer flow was big. In March, because of the market turmoil, we had struggled. In a quarter days, for domestic markets, it was only a slight up increase. Now shifting our eyes to overseas. For the third quarter, it was pretty strong, and that momentum was continuing to the first two months until February. Especially in U.S., because of the struggling, the situation in the third, in March, the 4th quarter had a slowdown compared to the previous quarter, where there was a turmoil and also the widening of the credit spread. Treasury and the credit had some impact. We think that this is more like transitional or temporary. The treasury and entities and little, it's coming to the level of the third quarter. We are not very much concerned about that situation or slowdown. For the excellence method for the financial products transaction, we will have to look at the dealing size or the transaction size of the equity. There is a requirement that we have to have. We see the transaction volume has increased, and that's the reason why the provision had to be bigger. Mainly, the flow coming from the overseas investor had increased, and that's the reason why we provided for as an additional. It's not coming because of the market turmoil. To answer your second question, in order to improve our ROE, what we are doing as an initiative is, well, as Muraki-san just assumed, asset-based business or the hybrid business with the wealth management business model is something that we are looking at, which is not much a synergy with the securities business, or we are making an investment in the growth areas. For the current year, the focus areas that we are we have selected is the ROE for this year. The reason for its deterioration is the global market. There are some market factors which is big. For equities, interest rates and bonds, they are also fragile and then so are moving so much, so that the operating environment for our business was quite big. The ROE was down, that's for sure. As we saw, as we show in November, we have the restructuring plan by spending JPY 40 billion. With that initiative, there are two things to focus upon. One is the profitability improvement. Starting from the current year, Global Market Strategy Plan division is launched. The mission of this division is to have a stronger alignment with the retail business to come up with the products on the quickly and a timely manner to meet the demand and needs more. The second is the overseas market operation business line needs to be re-engineered. Far, for Europe, the CDs and the bonds book have been transferred to Tokyo, and then the business in Europe has been downsized, so that not performing the businesses or low-performing businesses had to be scrutinized for us to make a decision of whether we are going to pulling off or whether we are going to be downsizing. This Global Market Strategy division or the planning division is going to be leading to think about what we are going to do and then think about the future potential of what we should do. Well, just to add, to build on my idea, because the cost reduction, we said that we are going to reduce by JPY 5 billion, but now we have come to a little over JPY 4 billion of cost reduction so far. For the current year or for the FY 2022, we have started to see about JPY 1 billion as an effect. The remainder is going to be leading to the cost reduction in 2023. Thank you very much. For the new year, new fiscal year, as you said, the ROE improvement and the profitability improvement that we are going to take, with associated with that will be X loss. For the year that ended, you had the books that have been transferred from Europe and also the business restructuring of about JPY 2 billion, the impairment of the fixed asset of about JPY 2 billion as well. For the new year, should we assume that the such amount is probably going to be flowing out? What kind of visibility do we have at this moment? No, we do not have any clear visibility. Well, as Muraki-san said, in the fourth quarter, if you just take up, take up the fourth quarter, there's been JPY 3.1 billion of the X loss. How that is going to reduce the running cost on an annual base? Well, roughly speaking, it's going to be below JPY 2 billion. It's no, it. Well, it's going to, partially are going to slow down the running cost. We need to look at what is going to lead to the reduction of the run cost and also the London or the Europe's scaling down and the system asset removal or the retirement, and those things need to be considered. At this point of time, we do not have any clear visibility on what is going to happen. Okay. Thank you very much. Clear. Thank you. Mr. Muraki, thank you so much for your question. Next questions are from Mitsubishi UFJ Morgan Stanley Securities. Fujimoto-san, please go ahead. Thank you so much for taking my question. Current financial accounting and managerial accounting, I don't really see the difference of the two accounting principles, so please give me some color on the commissions, other commissions received, which increased on a Q- on- Q basis quite a lot. Is this due to the asset management segment, non- vanilla type of investment trust related commission? That's question number one. Is there any one of the improvements there? That's my first question. Second question, other operating income and other expenses, those have become larger. Looking at that slide, probably that's are due to the investment banking, JPY 6.5 billion profits, where you have sold some assets which generated not only net proceeds from the sale but also expenses associated with those. If you look at the net between the other operating expenses and operating income, JPY 19.4 billion in Q4, and in Q3, JPY 7.9 billion. The improvement is more than JPY 10 billion. Increase of the investment business cannot really explain fully. Would you please break that down in more detail? Thank you so much for your question. First, other commissions received. Please go to Page 23. You see the breakdown of other commissions received. Wealth related fees and insurance in M&A, related fees are included. In Q4, JPY 6.3 billion to JPY 9.9 billion in management fee increased in the fourth quarter. Your second question was, Would you please wait for a moment? Before I forget, in management-related fees, on the quarterly basis, there's some volatility. In this fiscal year, hopefully you have tough time in terms of the digital volume. Yet, management fee was this amount. What is the level that you expect for 2023? Do you think you can secure the similar level as this year? Probably on the global basis, management income is so down, why do we see this much fee? For the M&A fee, g lobally, we focus on the middle cap space. The pipeline is actually quite good, which is generating income. We talked about Green Giraffe, which is related to ESG business in the regenerative energy field, and they are specialized in the ESG or regenerative energy. Green Giraffe is performing very well on the back of the ESG trend. Our expectation for this year, as I mentioned earlier, we have LP investments in ESG-related funds, and we sold our equity stakes. In the global investment banking, it's included in other and M&A and other income. However, M&A-related fees, as we disclose, this other commissions we take, this is a pure advisory, M&A advisory fee only. Green Giraffe-related fees are not included in this line. This is doing very well as before. For 2023, it's pretty tricky for the M&A business. The pipeline itself globally is at a high level, very high level. In particular, for overseas, the pipeline level was at the record high in the past in 2021. We have even higher level of the pipeline now. Are they going to be put into actual real deals? It depends on the market, and it depends on the environment. It's really difficult for us to predict, but I would like to execute to the best extent we could. This is not a direct answer to your question, but we have the good level of the pipeline. Thank you so much. Let me address the second part of your question. Other net basis, other income and other expense on a net basis. As I mentioned earlier, mainly Daiwa Next Bank. There's this balance from the financial profit and loss and other operating income and loss, which declined from the third quarter. This is one of the reasons for the change. We have profits from the sale of real estate in the investment division, that's included in the real estate-related business. We posted profits from the sale. We posted the profit in the investment division for the investment division-related real estate. For others, we accounted for the profits in the other segments. Next Bank is the biggest contributor to this improvement. Understood. There's a financial profit and loss, which is not included in the segmental information, which was large in Q3, declined by about JPY 7 billion in Q4. I understood. Thank you. Fujimoto-san, thank you very much for your questions. Next question comes from Morgan Stanley MUFG Securities, Nagasaka-san. Nagasaka-san, please. This is Nagasaka of Morgan Stanley MUFG Securities. Thank you very much for your presentation. I have two questions. In the retail business, you have moved to the wealth management style business, which is going quite well. Let me just please explain the flow. Like a foreign bond and the equity investment trend, trust trend shows that you are not making a full recovery, not yet. What kind of challenges do you think you have, and what's your future outlook as much as you can comment? My second question is about the return to shareholders. This time you are talking about the up to JPY 25 billion of the share repurchase. I think the amount is probably beyond the expectation of the market. The reason for setting that limitation, if you could provide some colors on it? Thank you. Thank you for your questions. First of all, for the retail business, the retail division, I may be repeating, but we've been focusing on wealth management business now. However, we are not prioritizing that over the flow business. We need to strike a good balance between the wealth management and the flow business. Gradually, the stock income is imagined to increase. This time, the foreign bonds is not making a full recovery or it's actually declining. There are some reasons to it. First of all, the market uncertainty originating in U.S. and Europe, the market has come to the correction phase. The non-yen bond sales have had a negative impact coming from that. The other reason is, mainly in the month of March, there's been quite a large source to finance. Normally, those are the proposal kind of products for the customers. The preposition activities had slowed down, and that did not really help or contributed to push up the sales. Compared to the previous quarter. Well, the third quarter itself was, that was at the peak of the interest rate hike, especially the foreign currency investment has actually had a good gain. The sales of the non-yen currency had increased. The launching pad level of the fourth quarter was really high. We are not really sitting back feeling the satisfaction of what we see. The foreign currency saving is still about 30%. We think we need to increase that more. For the foreign bonds, compared to the other companies, we think we are taking a back burner. From that perspective, as I briefly mentioned earlier, for the current year, Global Market Strategy division is newly launched. This division is going to target at this specific customer base, and then come up with a product lineup to meet their needs to strengthen the marketing so that we'll be able to get more flow income. One thing that I need to add is that for the fourth quarter, on the balance base, JPY 20.2 billion, that means JPY 80.8 billion on an annual base. We've been growing at the pace of 8% CAGR. Are we able to continue 8% growth? In the 3-year term, we are going to go beyond JPY 100 billion, so that on the balance base, we think we'll be able to generate quite a lot, a significant level of the income. Flow income might have a trend of the uptrend, but still it's going to have some impact coming from the external. The flow is of course, the flow business is important, but we think we need to of course be engaged more with the wealth management business. To the second question about the share repurchase. Last time, it was JPY 25 billion. I think the market expectation is about the same level. Every time I think my answer is the same, but we think about the payout ratio of 50% or more. That's the commitment. For the share repurchase, we look at the financial soundness. Think about the equity regulations, the performance, and also the regulation changes and so on, so that we need to be, we need to have a discretion and then do it flexibly as much as we can. We need to think about those various factors to think comprehensively. We thought that we can and we should do JPY 25 billion. This was the additional for the year 2022. For the year 2023, we will again observe from the comprehensive perspective and then decide. Thank you very much. Thank you. Nagasaka-san, thank you so much for your questions. Now repeating the announcement, if you have questions, please press one, asterisk then one. Are there any other questions from the investors? Although we have some time remaining, but are there no further questions, so I'd like to end the session today. This completes the telephone conference call. Thank you so much once again for participating to our earnings announcement meeting. We are going to do our best to exceed your expectations in the future. We appreciate your continued support to our business management policy. We are going to do our best to create the income structure which is insusceptible to the market environment. We are going to continue our efforts in the future. We appreciate your continued support and cooperation. Once again, thank you so much.