Thank you very much for gathering today despite your busy schedules. We would like to start NTT's briefing session on the fiscal year 2022 second quarter financial results. My name is Hanaki from the IR Office. I will be serving as the facilitator today. At the start, I would like to introduce the attending members on stage. Representative Member of the Board, President and CEO, Shimada. Representative Member of the Board, Senior Executive Vice President, Hiroi. Executive Officer, Head of Finance and Accounting, Nakayama. Executive Officer, Head of Corporate Strategy Planning, Taniyama. Today's briefing session is streamed live. We are planning to stream it on our website at a later date, we seek your understanding beforehand. Regarding today's explanation of materials, please refer to presentation materials posted on our IR website. On the first page, points to be noted are listed, please go through it as well. From the President and CEO, Shimada, will explain the outline of the financial results, followed by Q&A from the floor. President Shimada, please go ahead. Good afternoon. Thank you for joining us at the financial results for the second quarter. Shall we start with page 4 of the material, please. Operating Revenue increased, Operating Income decreased, and Profit increased year-on-year. Operating Revenue and Profit reached new record high level as the second quarter. Operating Revenue increased JPY 398.5 billion year-on-year, up to JPY 686.2 billion, due to increase in revenue at NTT DATA and NTT Ltd. Of this increase, foreign currency accounted for JPY 135 billion. As for Operating Income, although there was positive impact of increased revenue, this was not enough to cover increase in electricity cost. Operating Income decreased JPY 12.7 billion, down to JPY 996.5 billion. From the first half, we have taken cost reduction measures to cover rising electricity cost. We intend to realize the benefits of these measures during the second half of this year. We want to achieve our annual guidance through these methods. As for Profit, it increased JPY 20.8 billion year-on-year, up to JPY 696.6 billion, due to one-off positive impact related to corporate tax. As for overseas operating income margin, it increased by 1.1 point, up to 5.8%, due to increased Profit driven by increased Operating Revenue at NTT DATA and NTT Ltd., as well as cost reduction through structural reform at NTT Ltd. That is the situation. Let me now turn to contributing factors by segment. Starting with Integrated ICT Business segment. While there was negative impact from price reduction in the consumer segment, it was offset by increased revenue at enterprise and Smart Life businesses. Both Operating Revenue and Operating Income increased in this segment. As for Regional Communications Business segment, both operating revenue and operating income decreased because one-off positive factor from the previous year no longer applies, and also because of the unexpectedly high increase in electricity cost. We will accelerate our cost efficiency program and increase revenue from system integration and growth business so that we can achieve our annual guidance of increase in both operating revenue and operating income. As for Global Solutions Business segment, in the case of NTT DATA, while operating revenue continues to grow from robust demand for digitalization due to increase in investment for growth, and also in part from unprofitable project in Japan, operating revenue increased and operating income decreased. As for NTT Ltd., both operating revenue and operating income increased due to increased revenue from value-added services, as well as cost reduction through structural reform. The segment as a whole recorded increase in both operating revenue and operating income year-on-year. As for others, real estate and energy, operating revenue increased due to increased electricity agency business at ENET, and also increased revenue from electricity business, reflecting rising commodity prices. Let me now turn to some of the topics on hand. I would like to introduce five. Please turn to page seven. Increase in starting salaries for new graduates. I would like to explain this matter. In order to hire more highly skilled talent, NTT Group major domestic companies are increasing the standard starting salary from April fiscal 2023. Also, we will begin offering higher salaries based on higher levels of expertise at the time of hiring. So, page eight talks about the new review salary system for regular employees. This will take place from next April. We want to have a salary system with promotions based on expertise. Page nine. Next, I'll explain about establishing a new company in the field of human capital. We will establish NTT HumanX Corp in December 2022. We will establish a new company that uses human capital data analysis to provide comprehensive support from consulting to system integration. Based on NTT Group's knowledge of pioneering human capital reforms, we will leverage NTT Group's personal data infrastructure and AI analysis to support company work style reforms, environment building, and improvement of engagement for career development of employees. Next page, please. Next, I will explain about development of technology that enables high-speed wireless underwater communications. As the technology that will enable stable, high-speed underwater acoustic communications, we developed two technologies, spatiotemporal equalization technology and environmental noise immunity improvement technology. We have established a technology that suppresses the impact of delayed waves caused by sea surface reflection and noise from marine biologies in a shallow water area that is about 30 meters deep, and successfully conducted a transmission test with transmission speed of one megabits per second, which is over 10 times of conventional speed underwater, over 300 meters of distance. We apply this technology to realize the wirelessly controlled underwater drones. Leaning forward, we will proceed into a demonstration for practical usage and aim for being used in infrastructure inspection of port facilities and fishery industry field for marine environmental surveys for aqua farming. Page 11, please. As for the overview of medium-term management strategy initiatives is as shown here. However, I will explain three main initiatives. With objective to further promote NTT Group's XR business, NTT DOCOMO has started the business of the new company, NTT Qonoq, from October, as announced last May. Based on our business integration plan of NTT DATA and NTT Ltd., NTT DATA, Inc. No, it's not last year, it is this year. Based on our business integration plan of NTT DATA and NTT Ltd., NTT DATA, Inc. was established as overseas business company under NTT DATA in October. In NTT East and NTT West, to further increase Hikari demand, they are planning to lower wholesale price for wholesale Hikari service during fiscal year 2023. Please refer to page 12. In order to improve capital efficiency and enhance shareholder returns, we have resolved in today's board of directors meeting to buy back our shares of maximum total amount of JPY 150 billion. That is all from my side. Thank you very much, Mr. Shimada. We would now like to go on to the Q&A session. We will first take questions from the members who are here on-site. We will also be taking questions from people who are connected to us on a remote basis. We will be able to take questions from people who are connected to the phone system, who have registered beforehand. We would like to start with the members who are present on-site. Please wait for the microphone to be brought over to you. Please raise your hand if you have any questions. Please state your name and affiliation, and go on to your question. Let us start from the gentleman in the first row. Thank you very much. Masuno from Nomura Securities. Thank you. I would like to ask about the second quarter results, just the three-month for the second quarter. We could focus on three-month. Can you give us some response for each of these business segments for these three months for the second quarter? Let's start with the Global Solutions Business. NTT DATA has already made announcement about the results. On a quarterly basis, NTT DATA, we knew that there was, with regard to revenues. I suppose NTT Ltd., when we take a look at this number, compared to the second quarter of the previous year, the margin seems to be coming down, profit seems to be coming down. Maybe it's because the profit was so high in the previous year. How do you see the outlook for the second half? How do you see the outlook for the Global Solutions Business in the second half? How do you intend to improve and expand your profit for the Global Solutions Business segment for the second half? I wanted to ask about Regional Communications Business after you respond to my question about Global Solutions Business. Okay, thank you, Mr. Masuno, for your question. Let me start with NTT Ltd. This time around, we have already plans for the second half. We are slightly behind the outlook for the second half, the major driver for this is as follows. We call this the system integration related services. The sales of system integrated services has been affected by the semiconductor shortage. The pipeline is building up. The pipeline has been expanding. Toward the end of the year, JPY 37 billion has built up at the end of September. I think the scale will be roughly JPY 170 billion at this moment. That being the case, revenues have been affected. That means that the profit in relation to this revenue has not been achieved. That is why the profit for the second quarter has not reached our plan. Aside from that, in the case of value-added services, we've already disclosed the numbers, we have seen the growth in data center business, sales has been increasing by 160%. We see very robust growth in data center business. Although we have not disclosed the following number In comparison with the full-year pipeline, roughly 90% of the full-year pipeline has now been translated into revenues for data center business. From the third quarter onwards, maybe we need to increase the investment in the data center business, because we'll not be able to accommodate the customer demands. That is the situation pertaining to our data center business right now. I think we need to be mindful of several issues. First is the handset sales, equipment sales. We have not been able to progress as much as we had anticipated. That is the issue on hand. Thank you for that response. Could I turn to Regional Communications Business segment? If we see just third three month alone, the profit seems to be coming down. This is probably affected by the electricity, I would imagine. You mentioned that toward the second half, you want to introduce efficiency program. It'll be able to absorb and make recovery in the profit. May I take it that is the correct assumption? Thank you for that. The situation varies between NTT East and NTT West. In the case of NTT East, as far as profit is concerned, last year we had the Olympics and the Paralympic Games. There was a temporary impact that accounted for roughly JPY 15 billion in terms of revenue. Revenue has been affected by that. This is a downward trend in the revenue. Because of the rise in electricity prices, operating income has also fallen as a result of these factors. On the other hand, turning to NTT West, the cost efficiency program is more skewed toward the second half. Because of the rise in electricity prices, we have to consider that. Last year, we also had a different transitional factor, temporary one-off impact for NTT West. Because of COVID-19, our call center business was affected. That factor no longer applies this year. That is with a negative impact on operating income. Electricity increase has not been covered by cost efficiency program. As far as the second half program is concerned, we have planned. If we are able to meet the plan for cost efficiency second half, we believe that we'll be able to meet the annual guidance of increase in both operating income and operating revenue. Thank you. The gentleman in the second row. SMBC Nikko Securities. My name is Kikuchi. Thank you very much for today. I have two main questions. The first is regarding NTT Ltd. It's a kind of the continuance of Mr. Masuno's question just asked. Structural reforms. This term, you have planned JPY 38 billion. First quarter was JPY 4 billion. The second quarter, how much have you spent? For the second half, how much more are you planning to spend? Originally, you had planned for JPY 38 billion. Looking at the progress of the first quarter, it seems that it is a bit behind. In the second quarter, is it behind, too? Do you really need to spend all of it, or do you need to add more to it, is what I would like to know. That's the first question. Regarding the data center, probably it has increased in revenue. It has increased in profit as well. You are making investments in advance quite a bit. Where you were explaining, I think the cost at the front is probably heavy. Is that also increasing as well? Regarding the structural reforms, at the first half, actually, we have not done even half yet. Probably around 40% is correct to understand. In the latter half, there will be about 60% of the structural reforms expenses that is going to be recorded. As I have been saying before, unprofitable countries or unprofitable services, we would like to withdraw from those. Currently, we are using outsourcing in the delivery area or the overhead areas. Those operations are working on improving the efficiency. The headcount optimization is going to incur cost in the second half. Throughout the year, the low profitability services, especially the cloud services, we are reducing it. It is showing on an equal basis. The two points that I've mentioned right now is going to be more loaded at the latter half of the year. Regarding the data center, thanks to everybody's efforts, the sales is steadily increasing. As mentioned before, in terms of the orders received, originally, we have reached already 90% of the orders that we have expected at the beginning. We also have plenty of pipeline as well. In that sense, capital investment, we'll probably have to spend more in the second half. For next fiscal year, it seems that they're not feeling the impact of a recession yet. Even in Europe as well They're not feeling the impact of recession yet. In a little bit more continuous matter, we need to make investment, is what we are thinking. In that sense, making investments on our own right now is going to surely link to the later return. We have many hyperscaler contracts, so the contract period is quite short. We are having an increase in the contracts that have a low risk. Even though we make our own investments, we would like to further expand the business. Thank you very much. Regarding the structural reform, I don't know if I should discuss detailed numbers. You said you have progress about 40%, in the second quarter, it was about 10, several billion JPY of structural reform that you have done. If you add that back, last year's second quarter structural reform was around 3 billion JPY. Limited profit, excluding structural reform and added back, you'll say in profit terms that it is improving. Is it correct to think that way, or is the data center driving the numbers? Last year's structural reforms expenses, it was about 44 billion JPY. What we've done in the first half is only one-fourth of that, and the second half was the three-fourths of it. This year, compared to last year, in the first half, we have spent more. That amount is absorbed and reflected in the current profit situation. The profit is behind the plan, and the reason of that is about the equipment sales business is not doing well, but the others are in line with the plan. Understood. In the second half for NTT Ltd., right now it is a part of NTT DATA, Inc. You may not be able to extract the second half numbers. First half, JPY 10 billion, second half, JPY 25 billion, was the operating income plan. After you subtract the structural reforms, that is not going to change. No, it will not change. Understood. Thank you very much. Well, not change, but whatever was behind in the first half, they will catch up in the second half. Need to catch up in the second half. Thank you very much. Regarding my second question, towards the next fiscal year, what is going to be the cost increase, the factors, or the factors to reduce revenue? You have mentioned that you are reviewing the salary amounts and also the expenses amount. You were saying that the new graduates, but I believe that overall the younger generation employees will be impacted by that. I don't know to what age range it is going to impact, but overall group wise, I think you don't include the overseas employees, but you do have quite of a number of employees in the younger generation group. It seems that it is going to be quite of an expense. Is that going to become a factor that is going to reduce the profitability? For NTT East and NTT West, the wholesale price, you said that you will be reducing that, and that is directly going to be a reduction in profit factor. For next fiscal year, how much should we expect? For the standard salary, starting salary increase, we said young people, but the background is the second year or third year employee. The cost increase factors is not that large. It is quite small, and probably will not reach even JPY 1 billion. Therefore, I don't think you need to be that concerned about that point. Also, what was your question? Oh, the wholesale price reduction. Regarding the wholesale price reduction, it is not clear yet at what timing that we will be doing that because NTT East and NTT West haven't decided yet. Depending on the timing, the degree of impact will change. This time, well, conventionally, if we do this, it will be the fifth time next fiscal year. We have done this already four times in the past. Therefore, basically, it will be probably the same level of price reduction. If that is so, thank you. The net adds are not that bad recently, therefore, for the FTTH. I believe that it is not going to be that much of a reduction. Yes. Well, lowering the wholesale price and have the collaborating partners to promote the sales more is what our intention is. Thank you very much. Any other question? We will go to the person in the third row in the back section. Thank you. Zuro from Citigroup Securities. My first question is this: JPY 150 billion share buyback. Appreciate the announcement of the share buyback program. Mr. Yes. Adjustable income is roughly JPY 300 billion. Out of that, JPY 150 billion will be allocated for share buyback. Can you elaborate on how you reached this amount? This year exceeds JPY 400 billion, and I think the actual track record will probably exceed JPY 400 billion. Are you going to use the remaining capital for debt reduction? dividend. Can you talk about the plans for next fiscal year as well, to the extent possible? Thank you for the question. Among the past couple of years, this fiscal year, I believe, represents the year in which we'll be carrying out the largest share buyback to date. That being the case, the shareholder return ratio will be 77%, I believe. Having said that, we don't want to increase the return ratio in such an extreme fashion. We want to pursue a more stable increase in shareholder return. That being the case, we felt that this was the appropriate level for us. To be quite candid, I believe the current level is quite appropriate. As far as our thoughts about possible increase in dividend, I think we need to monitor the progress of our business performance overall. Also, we need to see and monitor the progress in operating income. Based on that, we'll make our decision. In any event, under the current medium-term management strategy, we are going to be seeking increase in dividend as our basic policy. That policy remains unchanged. That is my response. Thank you very much. I will not ask about share buyback in the next fiscal year then. Let me go on to my second question. It's about the pace and the speed of your cost reduction efforts. In this quarter, JPY 875 billion. Improvement of roughly JPY 5 billion compared to the previous year. Compared to the previous year, the pace of cost reduction has been slowing down. I don't know how you're going to make the announcement, is there a possibility that cost reduction efforts will be delayed by pressure on prices? Can you share with us how you see the challenge? To the extent possible, since there's a comment about electricity price, to what extent will this have impact on your overall performance for the group? I would appreciate your comment. Thank you. Thank you for the question. As you point out, the pace of cost reduction is not slowing down. We would like to continue to follow and carry out cost reduction efforts. There's the impact of increase in electricity prices. For example, in the case of NTT East and NTT West, they need to absorb such cost increase. They also need to make further cost reduction efforts to absorb such cost increase. This goes back to what I mentioned earlier. As far as the measures are concerned, I think the measures will be more loaded or skewed toward the second half of the year. We hope we'll be able to cover the increase. We would like to really make an effort for cost reduction in the second half in order to absorb those costs. Thank you very much. That is all. Thank you. Thank you very much. The center, second row from the front, please. Mitsubishi. Mitsubishi UFJ Morgan Stanley Securities. My name is Tanaka. Sorry. I have three questions. The first is related to NTT Ltd. The structural reform expenses was already mentioned. For the effect of the structural reform in the first quarter was about JPY 7 billion. That impact or effect in the first half, in total, how much was it? The equipment procurement. Industry-wise, it seems that the situation is easing a bit, is what I feel. However, once again, I would like to ask you about your outlook. I believe you have your pipeline, but do you think the situation is going to be resolved within the fiscal year? Regarding the structural reform, in annual basis, about JPY 9 billion is what we are expecting for this year. From next year onwards, for the full year, we are expecting about JPY 12 billion of structural reform positive impact to the profit line. The first half, how much? What Shimada explained is that this fiscal year's structural reforms, and there was an effect of last fiscal year. The first quarter, it was JPY 7 billion. In the second quarter, accumulated basis, it was a JPY 14 billion. That is a total of last fiscal year and this fiscal year. In total, it's JPY 14 billion. In annual basis, it's going to be around JPY 20 billion. The first half is JPY 14 billion, and annual basis is JPY 20 billion. The second half, it seems that the pace is going to slow down. Well, what we've conducted last year, from the third quarter, it's going to be the same amount. Against the previous year, the effect is not going to show that much. What we are conducting, the conducting of structural reform right now, we will be seeing that effect in the second half. On an annual basis, it's JPY 20 billion. Next fiscal year, simply thinking, it's additional JPY 12 billion. Okay, next fiscal year, JPY 12 billion-plus additional. In fact, the semiconductor supply situation, the equipment procurement or equipment sales will be impacted by that. The semiconductor industry's situation, looking at the second quarter, as explained to you It is starting to glut, meaning that how much products can be manufactured at the vendor side for NTT Ltd., Cisco's supply, how much will that recover? It is all dependent on that. At least, the current situation has not recovered to the level that we want it to, but we are hoping that the second half, it will start to improve even more. At this point, it is not clear whether we will be able to respond to all of the pipelines that are accumulated. Thank you. NTT Ltd. is the distributor from the Dimension Data days. In that sense, it is a company that is buying the most. I cannot share you with the content, but we are receiving the supply that matches that position. Thank you. The second question regarding this human capital, this company, HumanX. This is a consulting and system solutions is what you have mentioned. For the talent of this company, is it going to come from NTT DATA and other group companies? Are you going to pursue the businesses in AI, or are you going to use the research institutions, or are you going to bring in other talent? This entity, NTT HumanX Corp, basically is going to be comprised by HR talent and combined with a consulting business associate and NTT Learning Systems talent. The HR of the group, or salary, or benefit is done within the group by these companies that the talent will be coming from. The HR consulting talent, we are depending on NTT Business Associe. We will be rolling out the talent from there into this company. The system composition of zero trust in that part, we will be utilizing NTT Communications capabilities as well. At the front line, NTT HumanX people will be working, and behind the scenes, various resources within the group will be leveraged. Okay, thank you very much. Of course, the sales channel, we would like to leverage the group's sales channel as well. Thank you very much. My last, third question is on page 11 regarding the medium-term management strategy, where it says promotion of the IOWN Development Rollout Plan. The digital coherent signal processing circuit and optical device is mentioned here. Will the sales be recorded? What is the timing that it is going to positively impact the P&L? I would like to have more of an elaboration on this. Regarding this area, at the end of this fiscal year, the 400-gig DSP packaged product is what we expect to be able to launch as a product at the end of the fiscal year. Being provided as a full-scale product will be from next fiscal year onwards from 2025. We would like to have a 500 Gbps product. 800, excuse me, 800 Gbps. It is for a specific purpose, so it is not something that we are going to see a sudden increase in the demand. The IOWN for the photonic, photoelectronic converted product, APN, the timing to supply APN, then the volume of that will increase. We would like to have more expectations from that timing onwards. For the other detailed information, in next week's R&D Forum, we will be able to give you more detailed explanations. Thank you. Thank you. We now like to take questions from members who are connected to us through online. For those of you who are connected on a remote basis, please push asterisk and then push one. Please push asterisk and then one. If you want to cancel your question, please push asterisk and then number two. We would now like to take questions from people who are connected to us online. Are there any questions from attendees who are participating through online? We'll take your questions now. Okumura-san from Okasan Securities, the floor is yours. Please go ahead. Thank you. Okumura from Okasan Securities. Can you hear me? Yes, we hear you, sir. Please go ahead. Hello? We hear you, sir. Yes, we are hearing your voice. Please go ahead. Thank you very much. My apologies. I just have one question. It's about NTT Ltd. operating income. In the three months of the second quarter, I think there was a drop of JPY 5 billion on a year-on-year basis if you compared with the previous year. You mentioned that the cost of structural transformation had a negative impact of JPY 8 billion, but on the other hand, there is also the benefit from structural reform, and the amount is equivalent. The factors, if you exclude structural reform, the remainder will be JPY 4 billion. We cannot visualize the positive contribution from increase in value-added services for services at NTT Ltd.. Can you talk about the positive impact of increase in value-added services on operating income? Well, we are behind by roughly JPY 3.6 billion because the plan was JPY 10 billion. That is the amount that we are behind. In principle, as I mentioned earlier, we need to focus on equipment sales. The revenue from equipment sales are not progressing against the plan. That accounted for 50% of the impact. Data center business was a positive contribution. That was able to offset the negative factor. That is the equation here. Okay, I see. Thank you. Value-added services are making a positive contribution to operating income, in the case of others, the other part is declining. Overall, the operating income is in the negative territory. Yes. That is how you should understand. Okay. Thank you very much. That is all for my question. Thank you. Thank you very much, Mr. Okumura. BofA Securities. Kinoshita, please go ahead. This is Kinoshita, BofA Securities. Regarding the cost increase part, if possible, I would like to know in numbers. Electricity cost. In your presentation materials on page 18, it says the increase in electricity expenses. It says that JPY 318 billion over on the group. On the group basis, what percentage is from electricity increase? And on an annual basis, how much of a compression impact is that going to have? In numerical terms, I would like to know, if possible. Mr. Kinoshita, thank you very much. The electricity price hike first half is a JPY 30 billion impact. About 40% increase occurred in the price, and probably the second half is going to be at the same level. On an annual basis, in total, it's about JPY 60 billion of a cost increase, is how you can understand it. Thank you very much. Including that, regarding the plan at the beginning of the fiscal year. At that time, from last year, the electricity price has been increasing, but this impact, has it been incorporated to a certain extent? Regarding the electricity price, you were not paying that much attention? If it settles within the JPY 60 billion range, the way you think right now, it could be absorbed. Moving forward, if the electricity price goes even further up, is it going to be enough by implementing measures at that point? First of all, when we planned for this fiscal year, we expected about a 20% increase, but right now it's 40%. It has increased twice than what we had expected at the beginning. Let's say the annual basis, it goes up by JPY 60 billion, then we have expected JPY 30 billion, but JPY 30 billion we have not expected. That part we need to absorb by increasing the efficiency and the cost side. Regarding the fiscal year, within the fiscal year, we have a contract, and of course, there is the fuel price adjustment issue as well, but probably around 40% is where we will settle. For next fiscal year, currently we're in the process of negotiating the contracts, and more than this fiscal year's contract situation, the environment is becoming more severe. When I'm saying severe, it's not that the price is going to increase, rather conventionally, we're able to have a long-term contract. Recently, with the electricity companies, having such a contract is becoming difficult. Regarding next fiscal year's plan, we need to carefully pay attention to that. Again, next fiscal year's business plans, how much can be absorbed through cost reduction is something that we need to thoroughly think of. The electricity prices, next year or next year for about two years, there's a possibility that it's going to continue to increase, so we need to be dealing with it cautiously. Thank you very much. Thank you. Next question from Mizuho Securities, Hori-san. The floor is yours, Mr. Hori, please. Thank you. My name is Hori from Mizuho Securities. Thank you for this opportunity. I would ask about NTT Ltd. Do you have any numbers pertaining to foreign currency impact on NTT Ltd. on a standalone basis? The decline in revenue for the equipment sales, and also increase in value-added services. I want to identify these numbers as much as possible. If you take a look at the materials that have been disclosed, there's a supplementary data. This is supplementary data in the disclosed materials. The value-added services ratio among the overall sales in the first half is about JPY 232 billion. That represents 28.6% increase on a year-on-year basis. Of that, data centers account for the largest bulk in terms of the growth, JPY 124 billion. That is the number for data center. That represents JPY 40.52 billion increase year-on-year. That accounts for 67% of the increase on a year-on-year basis. On the other hand, as far as the equipment sales are concerned, JPY 320 billion is the revenue. That's roughly JPY 27 billion increase. That represents an increase of 9.3%. But in the previous year, because of COVID-19 impact, the sales itself was very low. I suppose it's a reaction to that. That being the case, it is not yet back to the level which we expected. That is how you should interpret the situation. I'm looking at the breakdown numbers in the supplementary data. What about NTT Ltd.? What is the impact of foreign currency for NTT Ltd. on a standalone basis for the first half? Let me respond. In total, JPY 62 billion is the total impact of foreign currency for NTT Ltd. in the first half. I see. Thank you. Turning to data center, in the case of NTT East and NTT West, I suppose they were significantly affected by electricity. But in the case of NTT Ltd. data center, you're signing bilateral contracts, I suppose you end up susceptible to cost pressure going forward as well. You'll be able to pass on the cost to the customers. May I take it that electricity will not be a negative factor, pushing up costs for NTT Ltd. going forward? As far as data center is concerned, it depends on the customers. In principle, 50% of the customers are hyperscale clients. Remaining 50%, we're able to pass on the electricity price increase to the customers. The customers will be bearing the cost for electricity. In the case of large scale enterprise customers, many of the customers, we're able to pass on the cost to the customers. But in terms of contract with Asia, inclusive electricity, we have covered that in the contract. This also applies to some contracts in Japan as well. As for those type 2 contracts, when the contracts are up for extension, we hope that we'll be able to pass on the increase in electricity cost to the customers. That is our position right now. Significant portion of the increase in electricity cost, we'll be able to pass on to the customers, and that is the case for NTT Ltd. Thank you very much. [Foreign language] Thank you very much. Once again, we would like to receive questions from the floor. For those of you who have a question, please raise your hand. The third row in the center. My name is Ando from Daiwa Securities. I have two questions. The first is regarding the second quarter's each company's, the assessment of the profit progress from the holding companies perspective. NTT Ltd. is short a little bit, or NTT East and NTT West is impacted by electricity price. Other than that, NTT DOCOMO and other companies' progress assessment is what I would like to know. First of all, regarding NTT DOCOMO, regarding the consumer business of theirs. You can ask them from now onwards, the second quarter, there were some seasonalities. It is at JPY 4,080 in terms of ARPU. Within the year, it is going to hit the bottom probably. Regarding the subscribers number, MNP this year is steadily progressing. In that sense, the consumer business, they have a decline in the profit. We are seeing signs of heading towards a recovery trajectory. For the enterprise business side, the reaction from the customers is very good. The expectations from the customers is quite high. Towards that expectations, providing the mobile solutions surely is something that is asked for communications as well. We can have expectations towards that. As for the Smart Life business area, thanks to the efforts in the finance side, they are experiencing an increase, and for the other businesses are also experiencing an increase. The only one that is a bit of a concern is docomo Denki, docomo Electricity. This year's electricity contracts haven't all covered. For next fiscal year onwards, I believe that there are still issues that remain. Regarding that point, I would like you to ask Mr. Ii later on. They need to, once again, re-examine this year's plan and probably maintain this year's number of customers. As for NTT East and NTT West, as I mentioned before, it is as explained to you. Towards the second half, we need them to work on the cost reduction. For the NTT East and NTT West, other than electricity, it is on track to the plan? Yes. We believe so. Also, for the Global Solutions Business, NTT Data had some unprofitable businesses. Overall, there is a strong digital demand. The sales is strong. We believe that the Global Solutions Business is the growth driver. We are not that concerned. For NTT Ltd., as I have been explaining from before, the telecommunications equipment sales business is being impacted right now. However, at this timing, the margin is low. Having them improve the efficiency is something that we also can do. It is not necessarily all bad. Of course, the more we sell, it is better. If they cannot sell, we can respond in a way that it does not sell with different measures and initiatives. I believe that they are in the environment that they will be able to pursue such initiatives as well. As for the other businesses, for NTT Anode, for now, they are managing the business at a satisfactory level. They are increasing their sales as well from Tokyo Gas and other partners. Basically, NTT Anode is selling on behalf of them, they are able to secure the electricity side supply. They are steadily increasing. For real estate business, NTT Urban Solutions have a decline in revenue and operating income. Excluding the part that they have transferred over to NTT Anode Energy, they are increasing both in the revenue and profit. Thank you very much. The second question is, including the electricity power and infrastructure-wise, maybe not so much in Japan, but globally, there is some impact. Simply speaking, in terms of the price increase strategy, how much effort are you going to put into that? I would like to know your way of thinking, not just electricity, but also in the U.S. My impression is that the personnel expenses is in a situation that is easy to be increased. How should we think about this price increase? Regarding the devices product, the ones that are increasing, it is already set at that increased level of price. For the telecommunications equipment, the network equipment, or the servers, we have quite of a volume that is imported. The impact from that is something that is going to come out from now onwards, and we need to consider that as well. How much of a response can we make towards the inflation? Within the next year's plan, how much can we absorb? Is this something that we need to look into? As for the personnel expenses, the issue that Japan has is that the personnel expenses is not increasing. However, suddenly, personnel expenses are going up. I don't think such a thing is going to happen. This domestic inflation that we're experiencing here, if it reaches the level of Europe or the U.S., then we probably need to increase the wages and salary accordingly. The CPI has increased that much. CPI plus an increase of personnel expenses that will maintain or increase the employees' motivation is something we have to think of, but it's not going to be a sudden increase. In the U.S., the personnel expenses or electricity, various expenses are increasing. Therefore, you will have to bear the decline in profit. If you can increase the price, it will be okay. You already have measures ready for that direction? For the overseas businesses where we are experiencing increase in personnel expenses, basically, we are going to ask the customer to pay it. We can pass on to the service price. We don't have the mindset that the company side, us, we, are going to absorb it. Okay. Thank you very much. Any other question? Are there any other questions? Thank you. If not, with this, we'd like to conclude the presentation of the second quarter financial results for NTT. NTT DOCOMO will continue on with their presentation of their financial results, please stay with us a little while longer. Thank you for your participation. Thank you very much.