We now would like to start the earnings announcement for the first quarter of the fiscal year 2021. Thank you very much for taking time out of your busy schedule to attend the conference call today. I am Fujiki from the IR office and will be serving as today's facilitator. Thank you for your cooperation. First, I'd like to introduce the attending members today. Representing member of the board, Senior Executive Vice President, Mr. Shimada. Senior Vice President, Head of Finance and Accounting, Mr. Nakayama. Senior Vice President, Head of Corporate Strategy Planning, Mr. Taniyama. We have these four other representatives attending. The audio of announcement is streamed live on this website. This also will be distributed on demand at a later date, and we ask for your understanding. After this, the earnings results presentation, we will have the earnings results announcement of NTT DOCOMO. We would like to seek your attendance as well. Today's presentation materials are posted on our IR website, and please refer to them. On the first page of the presentation materials, points to be considered are stated, so we would kindly ask you to read them through. After this, Mr. Shimada, Senior Executive Vice President, will explain the overview of the financial results, which will be followed by a Q&A session to take your questions. Mr. Shimada, the floor is yours. This is Shimada speaking. I would like to explain the financial results for the first quarter of fiscal year 2021. I would like to take as many questions as possible. For my explanation, I would like to make it brief. Please look at page 4. Both revenue and income exceeded expectations. That was the quarter's result. Operating revenues was at JPY 2,892.6 billion, up by JPY 126.1 billion year-on-year. Operating income was JPY 486.3 billion, down by JPY 11.3 billion year-on-year. Our profit set a new record high of JPY 340 billion, up by JPY 67.3 billion year-on-year due to the positive impact of bringing in the profit that would have been of minority shareholders by wholly owning DOCOMO. As for overseas sales, increase compared to the previous year due to the increase in the system integration of NTT DATA revenue by capturing the strong digitalization demand. Overseas operating income margin has improved as a result of a higher revenue in NTT DATA, as well as positive effect of the structural reform initiatives. It was at 4.1%, up by 1.9% year-on-year. Next page, please. I will explain the mobile communications business, and the long distance international communications segment. As for the mobile communications business, though revenues declined due to lower rates, overall had an increase in revenue compared to the previous year due to increase in handset sales, as well as expansion of Smart Life business, such as finance payment. On the other hand, due to enhancing measures for further growth of Smart Life business and expanding the 5G areas, operating income declined against the previous year. By continuing the cost reductions, for the full year, we are aiming for both increase in revenue and income. As for the long distance and international communications business, there was a special demand for conference revenue last year at NTT Communications, which did not occur this fiscal year, and there was an increase in structural reform expenses at NTT Limited, therefore, both revenue and income decreased. I did skip a lot, but please go to page 14. In order to improve the capital efficiency and also to enhance shareholder return, at the board of directors meeting held today, up with a maximum of JPY 250 billion of the share buyback was resolved. Also, EPS for the target of JPY 320 in FY 2022 and full year forecast of the free cash flow and debt repayment for the term has been well considered. With this, EPS target for the FY 2021 has been revised to JPY 302 from JPY 300. Our basic shareholder return policy remains the same: to increase dividend in a steady manner, and also to conduct the buyback in a flexible manner to improve capital efficiency. That's it from me. Thank you. Thank you very much. Now we would like to open the floor for questions. As for the questions, as we have previously notified you, for those of you who have pre-registered and connected to this conference system, will be the ones to ask questions first. How to ask the questions will be explained by the operator. We would like to start the Q&A session. Those of you who have questions, please press zero and one. If you would like to cancel your question, please press zero and two. Mr. Masuno from Nomura Securities, please. This is Masuno speaking. I have two questions. The first question is regarding the overall EPS at JPY 320 being achieved ahead of plan and JPY 250 billion of a share buyback. Also reviewing the midterm business plan, the EPS and share buyback, the information is coming in separately. This JPY 320 achievement being achieved one year beforehand, is this linked to the review of the midterm management strategy? Is that going to link to the share buyback of JPY 250 billion? Can you once again, explain in order of each one of them and their relationship? First of all, regarding the JPY 320 achievement of EPS a year ahead of plan, I would like to answer that first. Actually, we wanted to put in effort to achieve it a year ahead of the plan. When we made the announcement of the last ended fiscal year financial results, this is something that we verbally have conveyed. However, as we have been speaking with our investors, if it's not placed in writing, the factual relationship is not clear, is what was mentioned to us. That is why we have actually written it down. In that sense, the midterm management plans are reviewing the relationship to that. It is not directly related to that. In that sense, it's just that what we have verbally conveyed to you last time, we have put it in writing as a record. Furthermore, this JPY 250 billion share buyback. This basically, every year, we conduct a share buyback in a flexible manner. This has been our basic capital policy. Based on this, we have made the decision to conduct the share buyback. In a sense, this is not directly linked to the reviewing of the midterm management plan. That is all from my side. I just want to confirm. When there is a review of the midterm management plan, is there going to be more of a detailed EPS target that will be assured? Yes, probably so. Okay, understood. My question is regarding each segment's performance for the last three months. Honestly speaking, there were business segments that were strongly performing and ones that were not doing so well. They were all mixed up. The regional communications, the IP network, and the packet, and the cost control was done very well. On the other hand, as you have explained, NTT Limited, the equipment and device sales has gone down due to structural reforms and the personnel expenses went up. Therefore, it seems as the structural reform is not progressing well. Can you explain the background of that? For the domestic business, of course, there was a special demand last fiscal year. Within the COVID-19 situation, the digitalization demand is increasing. Within that environment, the revenue has gone down, and that is unfortunate. How are you looking at this actually increasing? The mobile communications revenue has remained at JPY 10 billion. Is that intentional, or can you control that? Can you please explain about that before this quarter? Thank you very much for your question. This is Shimada speaking. In the order of how you have asked your question, Masuno-san, I would like to answer. First of all, regarding NTT Limited, it is a result that is difficult to understand. When there was the forecast that was announced, we were not able to give you the detailed explanation of the structure. That is probably why it is not clear. However, for this fiscal year's plan, there is one major factor. Throughout the year, the structural reform expense of JPY 28 billion is what we are expecting. The last fiscal year was JPY 8 billion. Compared to the previous year, it has increased by JPY 20 billion. The content of this, in a way, is streamlining the headcount. That's equivalent to 1/3. Also the service migration to cloud and et cetera, that's 1/3. Organizations reforming and integration, IT integration is 1/3. The reorganization is Europe and APAC. Of course, such efforts were made by country, but in addition to that, by region. For example, in Europe, the U.K. and the European continent was managed separately. That is going to be integrated. Also Australia and Asia region was separately managed. We are going to manage that as one APAC moving forward, is what we have started doing this fiscal year. Relatively speaking, in the first half, all of these efforts are concentrated. By doing so, within this fiscal year, about JPY 18 billion increase of a profit positive effect will be generated. From fiscal year 2022 onward, about a JPY 23 billion of profit boost effect is what is expected from these efforts. For the first quarter, the structural reform expense is JPY 8 billion. Compared to the previous year, it's a JPY 6.5 billion increase. Mainly, as a breakdown of this, is streamlining. This is, as you have mentioned, Mr. Masuno, is linked to the increase of the personnel expenses. In addition to that, last fiscal year, the former Arkadin conference-related services, there was a special demand last fiscal year due to COVID-19, and there's a reaction of about JPY 4 billion. In a total for the first quarter, JPY 6.1 billion loss was the result. This time, or for this fiscal year, the structural reform expenses, all of that is incorporated. In a full year basis, JPY 22 billion of operating income achievement is the plan. Up to the second quarter, the structural reform expenses will be recorded. Q3, Q4, we will recover from that situation, is what we are planning now. In line with that, if you look at the supplementary material for the financial results, you'll be able to see this. What is happening for the revenue side or the sales side, overall, the high-value added service last fiscal year was at 39%, but it has increased to 43%. The annual plan is 39%. If you look at the breakdown of the individual high-value added service, data centers, and managed services compared to the last fiscal year, they are increasing their revenue about 32%. As for network, about a 4% decline has occurred. Currently, in a concentrated manner, as for the network, we are making proposals. Thanks to that, it was in the Gartner's Magic Quadrant within the leader group. The right top position is where we are for this year. Therefore, in that sense, we were highly evaluated. Therefore, moving forward, we can have high expectations at the network business. For cloud, as I have mentioned briefly, it is in the midst of service migration. After we migrate as a multi-cloud, we would like to grow this business. For the conventional businesses, we are compressing it. It's about a 10% decline. Regarding the NTT Communications Japan domestic business, fiscal year 2020 is the first quarter when there was a declaration of state of emergency. There was the conferences and toll-free number special demand that has occurred. Compared to that, this fiscal year, we don't have that. There's a decline of that part. Last fiscal year, in the fourth quarter, starting with the online classes as a trigger, there's a system integration demand has occurred. For fiscal year 2021, that is not going to exist. In terms of the revenue increase plan, it is in a small degree. As digitalization advances, the solution cloud data network are being expanded, and due to that, we are going to put in effort so that we will be able to achieve increase both in revenue and income. Regarding NTT DOCOMO, this time, we have not disclosed this, but it's a result that has exceeded the planned figures. DOCOMO, the 5G expansion is done and planned, and also using the expenses in advance manner resulted in the 1st quarter of financial results. It had a plan that is going to be a decline in profit, but it has been performing above that plan. The investment is done in advance manner more than the fiscal year. As a result of that, the 5G-related depreciation or retirement expenses and the network usage fee is increasing. The expenses are used in a strategic way. The sales are related matters or the finance area within the Smart Life business, they're using sales expenses. That is being recorded. As a result of all this, the 5G's Networks are dedicated spectrum. The base station. DOCOMO, in accumulated matter, has constructed several 10,000, the competitors are one-third or one-fourth of that. The light speed of base stations, DOCOMO is constructing them in an advanced manner. Thank you very much. If that is so, where it says the decline in profit with, and communications limited in DOCOMO, it was in line or there was a extra? For NTT Limited, it seems like the number is bad. However, this April, the CEO changed to Abhijit Dubey. Before we enter this fiscal year, regarding the plan, we have had thorough discussions and discussed that we need further streamlining, and that has been reflected in this current plan. We are progressing in line as planned. That is same for NTT Communications and Limited, too. Thank you very much. That is all from my side. Thank you very much, Mr. Masuno. We would like to take the next question. Mr. Ando from Daiwa, please. Well, Ando speaking. Can you hear me? Yes, we can hear you. I have two questions as well. The first question I have, well, I was really watching the press conference, once again, I'd like to really ask the following question. NTT DOCOMO KPI subscriber numbers and also the 5G and the revenue. As for these four factors, from the NTT holding perspective, how do you really evaluate the progress with respect to these KPIs? Shimada speaking. First of all, with respect to NTT DOCOMO, with respect to ahamo, as has been mentioned by Mr. Sawada at the press conference earlier, 1.8 million contracts have been really well signed. So we are thinking that we are making steady progress. More in concrete terms, in terms of ARPU and others, well, there was some perception that ahamo will bring down ARPU, but actually in the 20 giga, we have this for kind of the upselling. Particularly with respect to ahamo, approximately half of these people are in their 30s or below or younger. In that sense, we are really making a developed progress or the growth in line with our expectation or in a very steady manner. There are some key points in the businesses in Smart Life domain, and particularly finance and settlement or payment related. In the next quarter, well, JPY 2 trillion at the wholesale has been well achieved. Compared to the previous year, approximately 30% growth or it has been doubled or multiplied by 1.3 times. Going forward, this finance and payment related service is expected to grow, and we have already observed this kind of the sign of the potential growth. In that sense, there are some areas where we were behind the competitors, and in order to catch up with them, cost has been incurred to a certain degree. Those are for the retail outlets who are really having these kind of the businesses, and we are coming closer to the number of those of the competitors. We think that the steady growth has been achieved. As for the churn, we have a slightly worsening trend, but it has been maintained at a relatively low level, and so we are not so much concerned. That's what we can say about this. Mr. Ando, do you have any specific theme that I should cover? We do have the earnings results announcement from NTT DOCOMO, I think we'll just have a brief overview could be just fine. The second question, you have explained the results by segment and the regional communication. I don't think you have made much of the reference to the regional communication. Looking at the numbers and fixed and voice for the communication revenue, it's not really declining too much. It was difficult to understand 100% fully. As for the regional communication, is there anything that you would like to really mention about the business performance of this segment? Regional communications. Net adds of the Hikari business. The trend has been reduced steadily. We are really adding the number of contracts, particularly, in the last fiscal year, because of this remote work environment, we had a significantly higher level of demand. IP package revenue for both NTT East and West, we have seen substantial growth, which has resulted in a driver to increase our revenue and income. In Western Japan or West, the contract business, the subsidiary company, has seen a significant growth in revenue. Because of the COVID-19, related the response by the call centers, there was the increase in the demand for such and also the e-books, Solmare. I think what this is driven by the demand of the people staying at home. These two businesses have really made a contribution to our income growth. The fixed and voice communications related, we have seen a smaller instead of the decline compared to the last year, and this is with Taniyama from the Corporate Strategy Planning. I think there is a difference between NTT East and West, and the reason why we have the smaller number of fixed-voice revenue decline in the East. We have some positive because of the Olympic Games. Because of that, we have some slight difference between NTT East and NTT West. Thank you for that. Thank you, Mr. Ando. I'd like to take the next question. SMBC Nikko Securities, Mr. Satoru Kikuchi, please go ahead with your questions. This is Satoru Kikuchi speaking. Regarding the financial results, all of the questions I wanted to ask was already asked by the previous people. Regarding the management, in the last result announcement held in May onwards, Shimada, what have you been doing, is what I would like to know? Mr. Kikuchi, thank you very much. It's not that I was just daydreaming every day. It's just that there are things that I can share with you, and there are things that I cannot share with you, and there are things that we're doing that we cannot share with you also. In fact, due to the fair study meeting on ideal way of ensuring fair competition, there are some delays in what we can share with you. Regarding the discussion of the content itself, it is progressing. At the current situation, when we'll be able to make the announcement will all depend on when the report will come out from MIC. I cannot say anything clearly yet. We are working on the management that we will not fall behind schedule. In that sense, from next fiscal year onwards, we would like to make it a way that we will be seeing a sure effect. Questions that we've been receiving from you previously regarding the synergy effect and others, we would like to make it a way that we'll be able to give you a specific explanation, and I kindly ask you to understand that. The second question is the securitization of the assets. I believe that you were going to actively progress on that. I looked at the briefing session material, there was not much of a mentioning. Was there not many of an activities in the last three months? In each telephone offices, and the towers on top of the base stations for telephone offices, you were going to carve them out, I believe. Can you explain that? What we have started is that the off-balancing the data center assets. One, we have already made an announcement in India, in Mumbai, Tokyo Century has a 75%, where we will collaborate with them for the data center there. Moving forward within this fiscal year, we would like to make things more clear. Data centers off balancing, it will be a more of a medium-term initiative, and I believe that we'll be able to come to a time that we can give you explanations. Related to data centers, this fiscal year, it's about JPY 130 billion-JPY 140 billion of investment with our own capital, which is in line with the previous years. For the external capital We would like to bring in about one-third of the required capital from external sources, or third-party capital from external sources, which is about JPY 200 billion. In total, that amount will be invested in data centers. There's a demand for data centers. For the new data centers, we'll bring in the third-party capital. The management and operation of the data centers will be done by NTT, but we will go in that way. Regarding the existing data centers, we will be managing the data centers. Where it is necessary, or how should I say this? The data centers that can be off-balanced, we will off-balance them. In that sense, the structure of the network needs to be considered. We will determine which will be kept with us and which will be off-balanced. As for our real estate and property assets, this is related to Urban Solutions Group. This year, as for selling the real estate, it's about JPY 400 billion of our real estate is planned to be sold. That is because the housing property rotates, but for offices, depending on the area or how are we going to consolidate our locations, depending on that, we would like to replace the assets, or if there are real estate that's better to sell, we will. We would like to optimize the real estate assets. Also, that's about it. Thank you very much. That is all. Mr. Kikuchi, thank you very much. We now like to take the next question. Tanaka-san from Goldman Sachs, please. Thank you for the opportunity. Tanaka from Goldman Sachs. I hope you can hear me. Yes, we can hear you. Thank you. With respect to NTT Limited, I have two questions. The very first question, once again, I'd like to seek your view. Earlier, in terms of the restructuring cost and also the effect of the reorganization has been well-mentioned, and you are really expecting to have a stronger effect in the next fiscal year. The restructuring cost, JPY 28 billion in this fiscal year, and after spending this much, in the next fiscal year and beyond, do you think this is going to be reduced, or do you have to keep that level of the investment? Of course, this is something about the future, but how should we look at the restructuring-related cost? This is Shimada speaking. As for the restructuring and the structural reform, we have been doing this in the last two years. In that sense, with respect to this scale of the structural reform, we would like to end this by the end of this fiscal year, hopefully. However, related to IT, as I have said, reorganization, if that is being done, we may have to review, that could be required. In that sense, rather than structural reform, strategic investment and some spending might be necessary to a certain degree. As for the new business deployment, that's something we need to really consider and look into. The skills of the personnel is really attached to the business itself. The human resources might be replaced depending on the business we are to embark upon. We do not really expect to see the same level of the spending in the next fiscal year. That's our observation. Thank you for that. The second question, high value-added services is showing a strong growth. Of course, there is a growth from the rebound of the COVID-19, and it is not going to continue as it is. The outlook for the second quarter and beyond, and by product, you have really shown the break even of the results by product but not by region. If you could just give us some kind of image of how this has been growing. Shimada speaking. Related to data center, there are not much of the regional variances or differences. By region, where we see the impact is the areas where the higher impact or the stronger impact from the COVID-19 is affected, because naturally, there is a negative factor for the sales activities and others, and so that has been the impact. Going forward, what we need to reinforce a little more is the U.S. In case of Europe, the U.K., and Germany, where we have bigger markets, and we need to really upgrade our efforts to reinforce the business here. Of course, due to the COVID-19 pandemic impact, and also in terms of the market scale, on our part, we do not have a higher market share there. We would like to really focus on these regions to really accelerate the growth going forward. Thank you. Tanaka-san, thank you very much. We'll like to take the next question. BofA Securities and Mr. Kinoshita, please go ahead. This is Kinoshita speaking. Can you hear me? Yes, we can hear you. I have two questions also. The first question is a bit detailed, however, the non-operating area, the financial income and equity method applied income is improving than the previous year. Is this a one-time effect or what is the background of this, is what I would like to know. That is the first question. This is Nakayama from finance and accounting. With the financial income is a JPY 6.5 billion increase year-on-year. We received a dividend last fiscal year. We have acquired the shares of Toyota last year, and we have received dividend from them, those shares. That's about a JPY 4 billion increase. Also, equity method, the Tokyo Century Lease, we have incorporated their profit. Basically, naturally, organically, these increases occurring, yes. That's the correct understanding. My second question is, you have announced to conduct a share buyback, and in annual basis, you will do that. Looking at the past track record, I believe that announcement timing was earlier than the past years. It's up to next March 31st. Do you have any thoughts that you would like to conclude it as soon as possible? This is Shimada speaking. No, we don't have such intention at all. It's not that we want to do it quickly or as such. No, we don't have that intention. We're just naturally going to conduct the share buyback. Within the fiscal year, you will be conducting the buyback? Yes. You're correct. Okay, thank you very much. Thank you, Kinoshita-san. We would like to move on to the next question. Takahashi-san from UBS Securities, please. Takahashi-san, we don't seem to hear you. Yes, we can now hear you. Thank you. I have two questions. The first question is with respect to the review of the EPS and the point of clarification. The event to make NTT DOCOMO a wholly owned subsidiary company, then automatically you will have the boosting of EPS by JPY 50. Based upon that, the basic starting point is JPY 320 plus JPY 50 and JPY 370 might be the starting point. There has been no change in terms of direction to be pursued in the midterm by DOCOMO. Can we just take this view, or if there is any different way to look at it, what are the factors which are you assuming that you will now be really well in line with that? Basically, the target of FY 2023 is to be reviewed. Is that the right understanding? Well, as for the review, this is Shimada speaking. As for the review, at this point in time, what we are thinking is FY 2023 number is to be reviewed. At that point in time, from your side, people are really saying that we should have this plus JPY 50. On our part, basically speaking, this is one of the forms of the M&A. Inclusive of the M&As, we were saying that the target is JPY 320. It's not that we could just add JPY 50 on top of the JPY 320. That's what we would like to really say, but of course, based upon the feedback from your side, we would like to really reflect your views and then at the appropriate timing, we would like to really announce that reviewed numbers. May I ask the second question? As for the PSTN migration in January 2024 is the timing, it is slightly just into the future. What you are really assuming the potential financial impact, what should be the potential financial impact from this migration? PSTN migration. The financial impact is not really expected to be large. Basically, within this JPY 40 depreciation, we will be able to really manage and accommodate. It's not that we are to add on anything new on top of this. We don't expect major financial impact from this. That's our understanding. The voice telephony or the voice communication and long distance communication, the unit price is expected to go down. What do you think of this? It is exactly true. We have seen much of the reduced on a volume-based rates. It is basically based upon the basic rates. Of course, it is going to be declining, but in our view, it's not going to be a significant impact in any way. Thank you. Thank you. Thank you, Takahashi-san. We now like to take the next question. From Credit Suisse Securities. Mr. Eguchi, please go ahead with your question. This is Eguchi speaking. I have a question regarding NTT Limited also. This time, you are conducting a structural reform. Probably from next fiscal year onwards, the structural reform expenses will be recorded. Looking at the mid-term operating income margin target, what is the progress? I was thinking that maybe you are thinking of some additional expenses for the structural reform, but I'm just wondering at what point is it going to get close to what you are expecting? If you can explain it including the timeline, sense of timeline, it'll be very helpful. Thank you very much for your question. The current structural reforms that we are conducting and including such efforts, the operating income margin target of 7%, the road to achieving that, we are on track. As to this current timing, conducting the structural reform, in the last 2 years, we have changed the organization. In a way, we were integrating the companies with subsidiary companies attached to them. The brand and the organization itself at each country, as a unit, the integration process is close to completion. In order to deploy the high added value business, rather than the just integrated organization, we wanted to make it into a better organization. In order to achieve that, we have decided that the structural reform should be conducted this fiscal year. It is difficult for me to say that the process is accelerating. At least regarding this fiscal year's planned target, our understanding is that it has become to one that they'll be able to achieve those targets. Based on that, in fiscal year 2023, we will be achieving 7%, will be the target. It is one of an important key position in order to achieve the midterm plan for the global business. The second point also is regarding the overseas business, including NTT Limited. Well, last year, due to the COVID pandemic, the whole world has changed. How the companies are investing towards IT has changed, too. I think your company has done a structural reform in a good timing. I think you're in a phase now that you can actually go with the momentum. You did another structural reform, and then you changed the management again. It seems that the governance from the holding company in Japan, is that fully being conducted? I had some concerns regarding that. Thank you very much for your concerns. This spring, the NTT Limited CEO has changed. In order to lead this integration, we thought that having Jason taking over, it is easier to integrate. However, in order to go on to the next phase of growth, from the phase that we put importance on the human relationship. We need to change the talent to people who can overcome issues to deploy the new business. We have been selecting the talent in a strategic manner to do so. Thanks to those efforts, NTT DATA for digitalization is the base of the global business. Also, we can say that there's strong demand for the digital services. The managed services demand is becoming stronger. As you have mentioned, as a timing for structural reform, we were able to do that in a good timing, and meaning that changing the human resources and others. This fiscal year, we would like to come out with a certain outcome, and if we can bring up the margin to 6%, we will be able to see the next phase of the prospect. Okay, thank you very much. Mr. Eguchi, thank you very much. We now would like to take the next question. Tsusaka-san from FIA and J. Morgan Stanley, please. Tsusaka speaking. I hope you can hear me. Yes, p lease go ahead. I have one question. Far, when most of the NTT DOCOMO was a separate listed company, and then investors had a very high level of interest in NTT DOCOMO. Now you are integrated and also what the NTT DOCOMO is generating in terms of profit is accounting for about over a half. Mobile, the competitiveness, and also the recovery of the limited and in the management elements. The contribution ratio of each individual business seems to be getting smaller. What I'd like to ask you is, vis-a-vis having a communication vis-a-vis shareholders and investors, and more on a broader sense of the management of the NTT Group, what would you like to really emphasize, and on what point you would like to be evaluated? I am supposing that you're really going to be more creative in conducting communication, whether you are satisfied with the way you are having the communication. Of course, the stock price is to be determined by the market. Vis-a-vis the NTT shares and what are the sort of the factors to drive the investors to really invest in the shares of the NTT? What would be the sort of the major, the focus point of view of the communication going forward? As I have said earlier, NTT DOCOMO and NTT Communications and DOCOMO, to be more integrated and to really work for the enterprise businesses and also to enhance the efficiency of the network digitization. I think that could be the extension of the existing line of the thinking. I think Tsusaka-san and others might agree that that would be the strategy. In that sense, how to really come up with the scope of the new businesses, and that's going to be an important factor. On IR day, I am planning to really talk about this. Carbon neutrality has drawn much attention, and on our part, last fiscal year, Environment Vision of NTT Group was announced, and 30% of the energy consumption will be supplied by the renewable energy in 2030. However, looking at the trend in the society, this wouldn't be sufficient enough. Environmental factors is something we should look into. On our part, we are engaged in energy businesses and also renewable energy and something like microgrid. What kind of stance should we really take vis-a-vis these? This is something we are really asked to really come up with some answers. Our environmental vision and to what extent can we consume or use the renewable energy, and at what point in time can we really achieve the carbon neutrality? Centering around that axis, how we'll be able to really deploy our energy business. All in all, I hope that we will be able to really talk more about what we are going to do on our IR day. In healthcare business domains and different group companies are engaged. With the data-driven axis, how should we really organize ourselves and what about the drug discovery and how we'll be able to really develop the businesses. We would like to really sort out and organize our thinking so that we will be able to really have the better communication with investors. It could be a little difficult for us to really provide such information overnight, but I hope that you will wait for us to really present that kind of information at a later date. Thank you. usaka-san, thank you very much. Citigroup Securities, Mr. Tsuruo, please go ahead. Thank you very much for this opportunity. This is Tsuruo speaking. I have two questions. Many of the questions I wanted to ask have been already asked, so this may be a very minor question, but let me confirm. It is the progress of the cost reduction efforts, and the content. It's in the supplementary material. I think the first quarter is always a slow start. This time, you're planning for a JPY 25 billion level of cost reduction. You did do that. Where is this going to come out from? Moving forward, how is the cost going to be improved? I would like to know of your outlook on cost reduction. This is Shimada speaking. Well, this first quarter's cost reduction, it does the same as the past cost reduction initiatives. Meaning that about 40% with facilities and equipment, and for the sales-related, 40%, personnel expenses, about 20%. The larger part that is generating that is DOCOMO. From DOCOMO? Okay, understood. For the remaining three quarters, I should look at it as what has been done up to now. Same as what has been done up to now. Okay. The next question is, towers carve-out. There was a question already asked regarding this from somebody else, NTT West. Moving NTT West. Moving forward as an NTT holding company, how would you like to carve out the towers? I think the capital allocation of the holding company can control it, so I just want to know your thoughts. With this carve-out that happened, we will know about by towers strategy, but I would like to know about your thoughts on this. This is Shimada speaking. At NTT West tower, we have started the carve-out. Also at NTT East, we would like to consider it. How are we going to treat the DOCOMO part is something that we need to review in specific terms moving forward. One major factor is that regarding JTOWER, we are a large investor for them. Currently, the 5G base stations within the new spectrum, we haven't already installed 10 several thousand. Moving forward, how are we going to newly construct the base stations? We need to review that first. That is all. The pricing, when you do the carving out per tower, if you have any thoughts on that, can you share that with us? That is difficult to comment. Okay, understood. Thank you very much. Mr. Tsuruo, thank you very much. Now we would like to take the next question. Moriyuki-san from SBI Securities. SBI, Moriyuki. Yes, we can hear you. I have two questions. ahamo has been performing strongly in DOCOMO. From the group perspective, any change in terms of the request from this holding company to NTT DOCOMO, and it seems to be was somewhat lagging behind in terms of the Smart Life domain, and that was the sort of comment made. In what areas do you see that NTT DOCOMO needs to really catch up? Also, I think there is going to be the sort of profit or benefits of integration from NTT Communications. Where are you going to really reinforce the foundation? Any changes, if you could just enlighten me on that? Shimada speaking. First of all, with regards to ahamo, the effect from ahamo is really significant, I think. Constantly, MNP has been negative. Actually, ahamo has really stopped that trend. Within DOCOMO, the mindset of the employees of NTT DOCOMO, and I would suppose there has been a significant change. They were just thinking that it is really natural that we are seeing this decline in market share, but rather, they are to really increase market share. I think the ahamo has been really the big factor to enhance the motivation of the employees. I think this was the most significant impact. Within NTT DOCOMO, their mindset and willingness to win against the competition, that has become stronger, which is very important. We are really expecting this to really come more from the holdings perspective and also for the Smart Life business domain. There are some areas where we have the higher profitability, and there are some areas which are not so profitable. Having said that, in terms of one unit of the customer to what would be the scope of our offering, and from that perspective, whether we should be focusing on certain areas or should we have more broader scope. I think that's something where NTT DOCOMO is really trying to decide. On a group-wide basis, if we can really support them in identifying that would be very helpful and effective. In the very first place, finance and payment area will be the priority area. We would like to really work together with them for that. Do you think that there's going to be more of the cost to be incurred for catch-up? Rather than catch-up and all the settlement or payment areas, we are almost becoming the size on par with those of the competitors, but in enlarging the scope. A kind of the upfront investment might be required in some cases, and I think this is where they are. Thank you. The second question. In the first quarter of the previous year, because of the COVID-19 and the revenue of JPY 70 billion and also the impact on the income was for JPY 10 billion. That is the impact. Do you see any changes in terms of the impact? Well, is it becoming larger or smaller? Taniyama from the corporate strategy planning, I'd like to answer to your question. In terms of revenue, JPY 20 billion impact on revenue, and JPY 10 billion domestic and JPY 10 billion overseas. As for the domestic, the international roaming of DOCOMO and urban solutions and hotel conferencing related revenue, well, that has resulted in JPY 10 billion impact. Overseas, India and Indonesia, because of the significant impact from the COVID-19, we have seen decline in SI revenue. As for the profit, there were JPY 7 billion impact. For that, overseas, basically speaking, we had minor impact and the domestic roaming and also real estate impact has resulted in this for JPY 7 billion. It's not the reversal. JPY 90 billion in revenue, also there were JPY 17 billion where there were income on a yearly basis. This fiscal year, the impact of that is JPY 10 billion of revenue and JPY 7 billion in income. JPY 70 billion last year, then we have just for JPY 20 billion. As an operating income, we have for just a JPY 7 billion impact this year, but against the JPY 10 billion next year. Vis-à-vis on the previous year, you are having the positive. You have JPY 50 billion reversal on the revenue. Yes, for positive JPY 50 billion and also in terms of the income, positive for JPY 3 billion impact. Thank you very much, Moriyuki-san. Any other questions? Those of you who have questions, press for zero and one. There seems to be no further questions, we would like to conclude the briefing session for the financial results for the three months ended June 30th in 2021. We would like to reorganize the briefing session for NTT DOCOMO. Those of you who will be able to attend, well, please keep your connections. Thank you very much for your attendance. Thank you.