Now we would like to commence the press conference for NTT's financial results for FY 2025 Q2. Thank you very much for your attendance despite your very busy schedule. I will be serving as the emcee. My name is Sekine, from NTT Public Relations Department. First of all, let me introduce the attendees today: Representative Member of the Board, President and CEO, Akira Shimada, Senior Vice President, Head of Finance and Accounting, Toshihiko Nakamura, Senior Vice President, Head of Corporate Strategy Planning, Akitoshi Hattori. These are the three members. As for today's materials, they are uploaded on NTT official website at 1:30 P.M. Now we would like to begin. President and CEO Shimada, over to you. [Foreign language] Thank you very much for attending today. I am the CEO, Shimada. I would like to explain the fiscal year 2025 second quarter results. The second quarter results consolidated results were operating revenues and operating profit, and profit all increased year-on-year. Operating revenue reached new record high levels for the second quarter. As for operating revenue, though, it has decreased by JPY 60 billion due to the impact of foreign exchange rate. Due to the enterprise business of each group company expanding, an increase in revenue from incorporating data centers into REIT resulted in an increase of JPY 182.1 billion in revenue year-on-year to JPY 6,772.7 billion. As for operating profits, although costs will be spent on DOCOMO's customer base reinforcement and network quality improvement initiatives, profits from incorporating the data center into REIT being booked resulted in EBITDA of JPY 1,740.5 billion, up JPY 54.9 billion year-on-year. Operating profit JPY 945 billion, up by JPY 24.8 billion year-on-year. In the second half of the year, DOCOMO will aim to expand its foundation for future growth by accelerating its efforts and initiatives to strengthen competitiveness, such as reinforcing its customer base and improving its network quality. Although the competitive environment is tough for achieving the profit plan for this fiscal year, we aim to achieve NTT consolidated operating profits by making maximum efforts in continuing to expand our enterprise business as well as reducing costs. Profit was JPY 595.7 billion, up JPY 40.9 billion year-on-year due to increase in operating profit and others. Next is the [Foreign language] revenue and operating profit by each segment. Integrated ICT Business segment, although there was a decrease in consumer communications business due to declining mobile communications service revenues year-on-year, revenues increased as a result of an organic growth of Smart Life business led by enterprise and finance business. Although enterprise business increased its operating profit due to costs spent for initiatives to reinforce customer base and improve network quality, profit decreased year-on-year. As explained earlier, we plan to accelerate our efforts to strengthen our competitiveness in the second half and work to diligently maintain and expand our customer base. The competitive environment is tough for achieving this fiscal year's profit plan. However, we will continue to work to the maximum extent possible to expand growth businesses such as the enterprise and Smart Life business, as well as to reduce costs. [Foreign language] Global Solutions Business segment. Although the impact of foreign exchange rates on revenues was approximately negative JPY 60 billion, there was an increase in both revenues and sales due to capturing digitalization demand in Japan and incorporating our data centers into REIT. We aim to achieve operating profits above our annual plan by continuing to increase orders and sales both domestically and overseas by controlling costs. Regional communications business segment. Although there was a decrease in the legacy business revenues, there was an increase in enterprise and fiber optics business revenues, which resulted in increase in revenues year-on-year and operating profit in line as the previous year. As for net increases in fiber optic services due to sales enhancements of 10 giga plans in apartment building-wide services, there was an increase year-on-year. Others for real estate and energy and others. Due to urban solutions efforts in expanding office commercial businesses and data engineering, operating revenue increased. However, due to the decline in gains from selling property profit, we conducted selling the property last year, and due to that, profit has decreased. Next, I will explain six topics. First of all, I will provide explanation on the establishment of new company in the area of autonomous driving. NTT Group has conducted numerous demonstration projects on a nationwide basis to accelerate social implementation of autonomous driving by consolidating know-how of each entity to launch NTT Mobility Inc. dedicated to autonomous driving this December. The new company will further advance collaboration with stakeholders and address various challenges related to social implementation of autonomous driving. Furthermore, by leveraging communication network where NTT Group has strength, deploy related services solutions and aims to realize a safer, more secure, and more sustainable autonomous driving society. Also, on the performance of Osaka - Kansai Expo concluded on October 13, after 184 days run, 390,000 visitors came to NTT Pavilion. Especially, the performance using IOWN by Perfume was very well received as the first performance in the world. Thank you very much for that. In order to operate this pavilion, a total of 2,300 NTT Group companies' employees participated, which helped to nurture a sense of unity of the entire group and became the valuable opportunity to enhance EX. We aim to leverage insights gained from diverse use cases powered by IOWN, etc., to create new value and realize a sustainable society. Next, I would like to talk about business development after Expo 2025 Osaka- Kansai on the development of IOWN business. For IOWN APN at the large-scale sporting events, use cases are expanding. From this November, we launched for Hong Kong's financial industries expanding global deployment. As we conveyed at the PR/ IR Day the other day, IOWN optical computing will be used to commercialize optical switches using photonics-electronics convergence devices in collaboration with partner companies. In addition, using NTT's proprietary technology, we also aim to commercialize optical chiplets by 2018, also by leveraging IOWN technology such as digital twin Cho- Kabuki, Sekai no Hana Musubu Koto no Ha, will be launched in December at Kabukiza, and steadily advancing towards social implementation of IOWN. Next is on interim dividend. This November, as we announced at the beginning of the fiscal year, we will be implementing interim dividend per share of JPY 2.65. As for the total annual dividends per share, including year-end, we are expecting to increase for the 15th consecutive year. For share buyback, we are currently implementing, and the progress rate is at 40%, JPY 82.6 billion as of the end of October against the spot of JPY 200 billion. It is on track. As for the progress since August for the midterm business plan, it is adjourned. That concludes my presentation. Thank you. [Foreign language] From here, we would like to take questions from the media reporters. We will take questions from those who are here at this venue, so please raise your hand if you have a question. A staff will come to you with a microphone. Please identify your company name, media name, and your name, and then ask your questions. Due to time limitations, we would like to limit your questions to two questions per person for the first round. Now, we would like to take questions. Please raise your hand. The left-hand side person from my side, can you bring the microphone to the person who is wearing a blue jacket? [Foreign language] My name is James from Toyo Keizai. Before, out of the six topics you explained about the NTT Mobility, specifically speaking, what kind of a business is that? I believe that there was a Toyota mentioned as a customer, but what kind of a customers do you assume? And what kind of a scale of the business would you like to develop this into? If you have a target, please share that with us. [Foreign language] Okay, so can you show page seven? As you can see here, at the very end, the customers that will be using this service will be people, local residents, or people who use taxis at their local community. And of course, the transportation service businesses that will provide that transportation, and the public transportation will be provided by the municipalities or local governments. And towards these entities, the autonomous driving system will be delivered in a package, and that will be delivered by this NTT Mobility. So the vehicle of autonomous driving and also providing support for operating and providing a warehouse and providing the surveillance assistant system and other peripheral services that are related to autonomous driving will all be put into a package and provided to the municipalities or the transportation service providing companies. So in order to do that, the automobile manufacturing companies that will support that or the autonomous driving system providing a vendor and NTT Group, while the sales will be done by the NTT Group companies, so we will all have a collaboration. As you can see on the left-hand side, at each NTT Group company, they have conducted about 35 demonstration projects nationwide in Japan. Till now, NTT West was doing that, or DOCOMO business was doing this, or DOCOMO was doing that individually. All these various group companies were doing it individually. But all that know-how will be consolidated into NTT Mobility and make it into a package and provide this service. This is the purpose of this company. [Foreign language] Do you have any particular target? [Foreign language] For the government, by 2027, they want to provide this autonomous driving at the 100. And 2030, they're saying that they would like to provide the autonomous driving in a more larger scale. So we're hoping that we'll be able to achieve a JPY 10 billion sales by around that time. There are taxi companies that have vehicles on hand, but they have a shortage of drivers. So the utilization of their vehicles is actually a challenge, a societal challenge. So we would like to resolve that as soon as possible. On the other hand, the demand for such services because of the aging society is going to increase. So we would like to support that challenge. One more question is NTT DATA that became a wholly owned subsidiary company. Their domestic business synergy being generated, the measures, originally you were saying that you will share that around the fall season. However, in IR Day, you have touched upon it slightly. However, while there's a difficulty that you're feeling, and can you share the progress of that? [Foreign language] Well, already between the group companies and NTT DATA, the projects are established to generate a synergy. But in practice, well, this year, NTT DATA, the medium-term management strategy, actually, this year is the last year for that medium-term management strategy. So not just generating a synergy, but the growth strategy from next year onwards should be thought as one became the topic of discussion. So it's not just a simple matter that, okay, in the group, the enterprise account will be done by NTT DATA Group or DOCOMO business. However, if you look at it into more detail, the number of customers are totally different. DATA has a several hundred level, but DOCOMO business's case, they're in the thousands, the late thousands numbers of customers. So the scale is different. So the area that these companies are covering and the depth and the breadth that they're covering differs. Therefore, is it really better to consolidate the accounts or not? The discussion needs to be deepened by each customer or else. We need to determine, well, the key is that we need to determine whether we'll be able to provide the most appropriate service to the customers by doing so. So we need to have an in-depth discussion, and also in the group, each company is providing services, which are not the main group companies, which are companies that specialize in a certain area. So the position of such companies is better to bring it closer to NTT DATA or not. So those types of discussions on an individual basis are conducted in depth. And also NTT DATA itself, from next year onward, for three years or five years, what kind of business models are going to be on the growth trajectory, under what plan is being discussed right now? Therefore, if we are going to do both, even though we just announced the generated synergy, what is going to be the growth trajectory from next year onwards? We won't be able to answer that question at that time. Therefore, the announcement that we originally planned around this fall or the winter season, we would like to postpone it slightly and announce it around next spring timing. Thank you. [Foreign language] We would like to move on to the next question. The person in one more front row, can you? [Foreign language] From Nihon Keizai Shimbun, my name is Takatsuki. Earlier, you talked about the financial results, and NTT DOCOMO is in intensified competition, and mobile communication revenue is now declining. Under such circumstances, as NTT's holding company on a macroscopic level, what are your expectations to DOCOMO with the declining market share? What is your expectation? And the second question is, as you just announced, while contents area, business alliance, and against the difficult situation of DOCOMO at the moment, what is your expectation? In relation to that, there is video streaming other than WOWOW that is growing in the market, but is there room for contents expansion? Is that within your horizon? [Foreign language] Yes, thank you for the question. For the recognition of the competitive environment, as I have been mentioning, DOCOMO has the history of dropping share. We have Smart Life business, and we are trying to provide high value-added values to customers. And the share is 35%, not 35%, but we are trying to maintain and increase from the current status. So this year is going to be critical. So I believe you will hear this from DOCOMO, but in Q2, irumo 0.5 is already abolished, so MNP is now negative, but after October, MNP is now returning to positive. So in the second half, we will try to win in this competition, and that is our expectation to DOCOMO. Now is the critical timing. Of course, we will try to slash cost, and for the next fiscal year, we will try to, we are hoping that they will strengthen the sales structure. In order to do that, by injecting a cost, we hope that they will try to strengthen the structure. With With the strength that DOCOMO has at the moment, cost-cutting actions will be taken, including the sale of assets. We hope that they will be creative in doing so. Responding to the second question on WOWOW, the details will be, I hope you will ask to DOCOMO for details, but in principle, the DOCOMO MAX contents will be enriched, and this was already released, but the Lemino will be strengthened. In order to do that, contents should be added to WOWOW. We will be offering as well, but also the d A nime Store is another one from the four options, NBA, and also the DAZN too will be chosen by the customers. So we are expanding the choices of the customers through DOCOMO MAX so that it would lead to further satisfaction of the customers and also to cater to the needs of the variety of demands by the customers. I hope you will ask to President Maeda for details. For video streaming and anime that I mentioned, by strengthening those contents, the customers' interests are quite diverse. The voice from the customers should be received, and if necessary, there will be need for enriching the contents. So first of all, by working with WOWOW, new and independent measures can be strengthened. So this is an area of our expectation. I would like to take the next question on the left end of the room. [Foreign language] Thank you very much for your explanation. My name is Toma from NHK. Related to the announcements related to autonomous driving what was announced is that what was done within the group, it's going to be consolidated moving forward. Until now, what was done separately, what is the benefit by consolidating that and an effect of that as well? And the strength that is unique to NTT, what is that that exists in this? [Foreign language] For autonomous driving, we tend to compare that to the United States or China, but in those countries, the level four service is also in commercial operation. But in Japan, it's still a demonstration testing phase. So regarding this autonomous driving, what kind of willingness and determination do you have is what I would like to hear. Page 7, please, again. First thing is that the key point of consolidating everything is that remote surveillance or the system platform, until now, they were done separately by each company, and the proof of concept has been conducted separately as well. However, the platform that will support all those efforts, we would like to make that as one. So we have actually driven the Toyota vehicle of Mobility, in Nagoya, etc. But the platform and the telecommunications and the vehicle needs to be operated as one. So there's a main system, and there are other peripheral systems. And making that into one system in a consolidated manner is what we would like to do. If it's done separately, cost-wise, it is inefficient. So in a way, in the autonomous driving platform, on that platform, [Foreign language] based on that, we want to run the operation of the company's vehicle. [Foreign language] That is the strength and capabilities that we have as the telecommunications company. And that is why we wanted to consolidate those strengths and provide this service. Of course, we are having collaboration with Toyota, so we are actually conducting all these demonstrations through Toyota vehicle. But I'm sure other automobile manufacturers will come up with other vehicles, but we would like to provide these services to all other vehicles through this platform. [Foreign language] Related to that, the relationship with Toyota regarding the traffic accident provision, I think you're working on that. What's the relationship with that? [Foreign language] Well, the Toyota SAFE platform is a nationwide covering platform, is what they're thinking about. But this time, the NTT Mobility platform is in the local areas for the service for the local area's transportation company. But we are thinking of making a more basic platform together with Toyota. That'll be the foundation. But what Toyota is doing in that case is evolving more like traffic signals or the distance with the vehicle in front of you or the communications with that and all the calculations that are required to move that system, all of that. Not just autonomous driving, controlling traffic signals, etc. All that information, receiving all that information and creating a safe infrastructure. So it's like a new additional infrastructure. Please take it that, think about it in that way. And what will operate on top of that infrastructure is the platform we're talking about. Of course, there are multiple platforms, but what is closest to this infrastructure that Toyota is about to build is the platform closest to what Toyota is doing. We would like to take the next question. If you have any questions, please. Yes, please go ahead. [Foreign language] Nikkan Kogyo Shimbun newspaper, my name is Mizushima. This is not directly linked to the financial results, but Takaichi Administration is now inaugurated. But what is your expectation to the administration? That is the first question. And the second question is Expo. You talked about the future related to the exhibitions at Expo. And related to that, Perfume decided to go to cold sleep and decided to stop their performance and using their video. And I think you have some kind of relationship with Perfume. So if there is any comment to that, I would appreciate it. Thank you very much. [Foreign language] First of all, on the new Takaichi Administration, I have a very high expectation. In the past, she was the Minister for Internal Communications. And from that time, on the advanced technologies, she has a good understanding as far as I know. We are engaged in AI and in the future in the semiconductor area. [Foreign language] So private sector, academia, government, we need to work in unison to do the R&D activities of the new areas, and the social implementation of such areas will be expected. So in that area, she has a very keen interest. And the Prime Minister, with such interest to lead this area, will be the benefit for the economy in Japan. Another area is economic security; especially cyber attack is increasing very recently. So she has a very high interest on safety as well. So we have high expectations to that as well. And coming to the second question on Perfume, [Foreign language] President Maeda may have more memories, but 5G, London, Tokyo, New York, in three locations, they did the perfect performance in every location. And from that time, we had keen interest in their performance. Together with our business, they have extended their support. I'm very thankful to that. This time to NTT Pavilion, there was a very good reputation for our pavilion, and I believe that that is thanks to their capabilities. It's necessary for them to rest, and if they can accumulate more and if they can come back to stage again, I'm looking forward to that personally. We would like to wait for that as NTT Group. Thank you. I would like to take the next question. On the left-hand side, the person wearing a gray jacket, please go ahead. [Foreign language] Nikkei CrossTech, my name is Morioka. I want to ask a question regarding NTT Mobility. The number of employees, how many employees will be there? And simply put, from NTT Group's each company, you're going to consolidate the employees that are in charge of autonomous driving or the other way? [Foreign language] At the first, it will be several 10 people. And of course, as the number of projects increases, probably the scale of the headcount will also increase as well. But of course, at the start, we are created under the holdings of the company. And from the group companies, the people who are in charge of autonomous driving is the first step. But as written here, the automobile manufacturers or [Foreign language] operating vehicles require the knowledge of specific rules and knowledge. Therefore, we need those experts also to participate. Therefore, have them participate and go into an alliance with somewhere. We need to utilize the external capabilities or else this company will not be able to move forward. So not just NTT Group, but also the external people, people who have the knowledge and expertise are being hired. We would like to devise various measures to develop this company. Thank you. [Foreign language] If there is one more person we would like to take that question. The person at the front row. [Foreign language] Keitai Watch. My name is Sekiguchi On DOCOMO business, earlier you talked about the number of subscriptions and also I would like to hear about the financial industry and also looking at the DOCOMO's material. It seems like there is a significant amount of capital expenditure, but d NEO BANK and also the quality of communications are the area we are interested in. [Foreign language] The d NEOBANK has just become the subsidiary of DOCOMO. So the full-scale new service or within DOCOMO ecosystem, how will it be built into that ecosystem is at a certain timing. We hope that it will be announced to the market from DOCOMO. But currently, together with DOCOMO's team and Sumishin SBI online banking are now studying at this moment. And we only have some topics as the collaboration in points, but creating new services will be essential. Please wait for a moment for the announcement. In terms of quality, DOCOMO is, [Foreign language] along with the strengthening of marketing, they are now committed to the enhancement of the quality in major cities. It is now reaching around 80% for over 100 MB downlink throughput, and steadily, the number of base stations is increasing, [Foreign language] but still, there is still a traffic increase. It is still difficult to complete within this fiscal year. We will continue to increase the number of base stations, and we will continue to introduce new facilities, but we believe that this will continue next fiscal year, at least during this fiscal year and next fiscal year, there will be focus in order to deliver high-quality communication over two years. Please contact DOCOMO for details. [Foreign language] I have one more question about Expo's Pavilion and its future in West Japan. I'm hearing that there could be experiences in West Japan, but will it be possible to have a similar kind of experience in other locations? [Foreign language] It's very difficult to have the permanent installation. But to what extent? This is something that we need to study. But for example, at R&D Forum, you may be able to have a glimpse of that. That could be one of the opportunities through various opportunities. What was done at Expo may be commercialized and implemented in other locations. And I think we will be in that stage so that we would like to be creative so that you will be able to see and use. And we would like to make efforts to do that. Now we would like to take the questions from the reporters who are participating online. For those of you who have questions, please press the raise your hand button. We will call upon your name. So when you ask your question and identify yourselves, please unmute and ask your questions. So please go ahead and press the raise your hand button. No questions from those participating online. [Foreign language] There were no questions from the participants online. So if there are additional questions from those of you who are in this room, we can probably take one or two more questions. Please go ahead. [Foreign language] Nikkei, my name is Takatsuki. I want to ask another question today regarding DOCOMO once again. The World Cup matches distribution, DOCOMO will be doing that. That was reported today. So do you have any comments regarding that? Unfortunately, I haven't heard about it at all, so I don't know. Sorry, apologies. [Foreign language] Any other questions from the floor? No more questions. [Foreign language] Any other questions from the floor? No more questions. Then with this, we would like to conclude NTT's press conference. We would like to move on to the press conference by NTT DOCOMO Group. Please wait for a moment. Thank you very much. Thank you for waiting. From now, we would like to start the press conference on NTT DOCOMO Group's FY 2025 Q2 financial results. First of all, let me introduce the attendees for today: President and Chief Executive Officer, Representative Member of the Board of Directors of NTT DOCOMO, Yoshiaki Maeda. NTT DOCOMO Executive Vice President, General Manager of Corporate Strategy and Planning Department, Hisakazu Tsuboya. NTT DOCOMO Executive Vice President, General Manager of Accounts and Finance Department, Natsuko Fujiki. These are the three members. I will be serving as the emcee today. My name is Fukuoka, responsible for public relations. Nice to meet you. Today, from President and CEO Maeda, he will talk about the overview of the financial results, and we will take questions. Now, without further ado, President and CEO Maeda, over to you. This is Maeda from NTT DOCOMO. Thank you very much for attending today. Now, I'll explain the results for the second quarter of fiscal year 2025. First, a financial overview. Operating revenue, JPY 3 trillion 32.7 billion, up by JPY 38.9 billion year- on- year. Operating profit, JPY 474.7 billion, down by JPY 78.6 billion year- on -ear. This resulted in increased revenues, a decrease in profit. Operating revenues by segment. In the growing enterprise and smart life segment, revenue increased, while consumer communications revenue decreased. Details of the changes will be explained later. Next is operating profit by segment. Here too, the growth areas of enterprise and smart life segment increased profits, while consumer communications segment experienced a decrease. Next, I'll explain the key factors behind the changes in operating revenues. Smart Life saw revenue increase by JPY 34.8 billion, driven by growth in the finance business due to increased finance and payment transactions and revenue increase from the rise in DOCOMO Denki contracts. Consumer communications continues to experience a decline in the mobile communication service revenues. However, our ARPU has improved due to the promotion of migration to DOCOMO MAX, and the decline in revenue has gotten smaller. Additionally, due to the impact of lower revenue from handset purchase programs, resulting from strengthened sales promotions, operating revenue decreased by JPY 43.1 billion. As for the enterprise, in addition to strong performance in large enterprise businesses, the small and medium-sized enterprise segment, which was a challenge last fiscal year, has recovered, leading to a JPY 59.1 billion increase in revenues. Next, I'll explain the key factors behind the changes in operating profit. Smart Life achieved organic growth centered on the steady growth of its finance businesses, excluding special factors such as upfront costs for the venue businesses. Organic growth amounted to JPY 15.4 billion. Consumer Communications recorded a JPY 92 billion decrease in profit due to a decrease in mobile communication service revenues and increase in sales promotion expenses caused by intensifying competition and prolonged campaigns and increased network reinforcement expenses. Enterprise Business achieved a JPY 111.8 billion increase in profit, driven by profit growth from revenue increases in initiatives such as cost efficiency improvements. The second half is also expected to see intense competition in the MNP market, with further increases in promotion expenses anticipated. However, we will generate the necessary funds through the cost efficiency and asset utilization while continuing to prioritize strengthening our customer base. Next, I will explain the initiatives for each business segment. First is the consumer business. Consumer communications operating revenue decreased due to declines in mobile communication service revenues and equipment sales revenues. While mobile communication service revenues continue to decline, the rate of decline has steadily narrowed due to initiatives implemented since last fiscal year to strengthen our customer base and drive upsell. We will continue to focus on turning around and increasing mobile communication service revenues going forward. Next is regarding our customer base. While we continue our efforts to strengthen our customer base, the intensifying competition from other carriers resulted in negative net MNP for the second quarter alone, and the year-on-year change in the net additions of individual handsets also deteriorated. While MNP decreased, port-in numbers increased significantly, particularly for large and medium capacity plans. Our churn rate remains low compared to competitors. Although fierce competition continues, we will prioritize reinforcing our customer base in the second half of the fiscal year and aim to achieve positive net MNP inflows for the full year. We successfully achieved positive MNP in October. [Foreign language] Although DOCOMO MAX experienced some initial delays, it has achieved a migration rate of approximately 60% from previous plans through in-store proposals aligned with customer needs and one-to-one marketing via the web. Further, the NBA DOCOMO and U29 wari plans launched in September have also been well received with the number of subscribers surpassing 1.5 million. We will continue to expand our appealing content beyond sports as explained on the next page, promoting new subscribers and migrations to DOCOMO MAX. Furthermore, in collaboration with partners such as DAZN and the J-League, we will strengthen communications with sports fans, including efforts to promote subscriptions through new customer touchpoints such as our partner's web channels and booths at J-League match venues. We will work towards achieving our year-end goal of three million subscriptions. This is a new topic. DOCOMO MAX is evolving into a plan that meets the needs of even more customers by adding value such as music, dramas, and anime. Regarding music and drama, as announced today, we have entered into a business alliance agreement with WOWOW, Japan's number one distributor of live music content. We will leverage the capabilities WOWOW has built over many years, including its technology, production expertise, and relationships with rights holders, to create new contents as well as award-winning drama contents from Japan and abroad. [Foreign language] Furthermore, we will continuously add live footage from top artists like BTS to Lemino. This will significantly expand our content lineup as the new Lemino. Regarding anime, we offer an overwhelming lineup covering even niche titles through the anime store and via d A nime Store. We will be providing that from the old, well-known animes to new ones. DOCOMO MAX offers a selectable benefit that allows you to choose two services from the four available currently: DAZN, NBA, and Docomo, plus the new Lemino and d A nime Store at no additional charge. The selectable benefits service can be changed at the beginning of the month due to customers' requests. And furthermore, not only contests but also exclusive experiences only available through DOCOMO MAX, such as live tickets for popular artists and event invitations, will be offered to delight many fans. Please look forward to it. Next is ARPU. As mentioned earlier, promoting migration to DOCOMO MAX increased the proportion of high-capacity plans, resulting in ARPU rising by JPY 30 year- on- year to 3,960 JPY. ARPU per subscriber has increased significantly for customers migrated from old plans to new ones. We will continue increasing migrations and subscriptions to DOCOMO MAX, aiming to achieve the annual plan target of JPY 3,970. Smart Life achieves revenue growth across all three business segments: finance, marketing, solutions, and entertainment. First, our finance business. Finance revenue grew steadily, increasing 12% year- on- year to JPY 243.5 billion. [Foreign language] In card business, d CARD PLATINUM members topped 1 million. Finance payment transactions maintained two-digit growth, sustaining good performance. In investment services, Easy to Start for investment beginners, Easy Asset Management was launched on July 31st. New account openings increased 25% year- on- year, expanding bases for investment services. From October 1st, Sumitomo Trust SBI Net Bank became the consolidated subsidiary. DOCOMO Group's Internet Bank, d NEO BANK, finally launched. By providing integrated DOCOMO financial services such as bank account payments and securities with just a smartphone, deposit, payment, investment, insurance, loan, and even points can be used conveniently in aggregate. In the future, we aim to become number one online bank in balance of deposits and number of accounts. Depending on the use of multiple services, beneficial schemes such as d POINT Rewards are under consideration. Both bank and DOCOMO service users are expected to increase. Furthermore, by converging various finance data, including bank with DOCOMO membership platform data, our CRM will be even more enhanced. By grasping usage and behavioral change of customers by leveraging AI and firmly understanding life stage and life event of customers, we will propose optimal financial service at optimal timing and further develop the entire financial business. Next, marketing solutions. The revenue increased, although there were extraordinary factors such as subsidiary divestment last fiscal year. Collaborative efforts with INTAGE are expanding steadily, and the synergy in revenue increased by seven-fold year on year. In view of further acceleration of growth in marketing DX business, on June 16th, new business capital partnership agreement was concluded with CARTA Holdings. DOCOMO's subscriber data platform, INTAGE's data analytic capabilities coupled by CARTA's digital marketing institution capabilities and broad media capabilities, even more powerful single ID marketing will be promoted with the combination of three companies' strength. Next is entertainment. The revenues of focus areas, content distribution services such as the anime store, studio, and live content production, rental of venue business such as Japan National Stadium and Aichi Arena, naming rights, and show and performances grew steadily, up 10% year on year. We will continue to acquire even more attractive content through alliance with powerful partners such as WOWOW and streaming venue business, show and performance as digital contents through new Lemino. In addition, by strengthening peripheral business such as ticket and good sales, we aim to further drive growth in the entire entertainment business Nexus enterprise. The growth area of integration platforms drove operating revenues to grow by two digits, up 13%. Demand from large enterprises is increasing, and risk in the public manufacturing and distribution industries, mainly in security solutions led by SASE. The challenge last fiscal year, mid-tier, and small business segments are ongoing by package solutions and recovering. To further expand growth, driving integration platform revenues, we will provide AI-centric ICT platform leveraging NaaS as strengths and industry-specific regional DX solutions. Especially, AI-centric ICT platform is flexible, safe, distributed, and reasonable, catering to the needs of customers in the AI era, consolidating values accumulated by DOCOMO Business so far. Also, by providing industry-specific solutions leveraging AI and advanced technology, we will strive to solve various social challenges such as decline of working population and cybersecurity measures. For example, in autonomous regional and SME DX solutions, tackling SMEs' business challenges, enterprise mobile new rate plan, DOCOMO Business, easy to introduce Gen AI service, Stella AI, and a business loan service for DX introduction were launched expeditiously. Going forward, we plan the launch of corporate credit cards. In view of regional revitalization, industry-specific solutions are provided in local municipalities, regional banks, Shinkin banks, and healthcare. While evolving these solutions, we will address further expansion of revenues. The core of this platform, NaaS, is highly evaluated by outsiders for its flexibility, enabling free and agile bandwidth chaining, security function, detecting threat in network, automating AI operation vis-à-vis customers' entire ICT infrastructure, and optimizing resources and cost. Gartner Award recognized NTT DOCOMO Business Inc. as the winner this October as the IT vendor promoting highest-in-class technical innovations. This was the first time for the Japanese company to be awarded in its history. We take this as the proof of DOCOMO Business Link leading service of NaaS offered by NTT DOCOMO as essential infrastructure in AI era recognized by the world. Next is network. Actions for telecommunication service quality enhancement will continue to be our highest priority, continuing to accelerate 5G base station rollout during this fiscal year, and number of 5G base stations will increase by approximately 1.3 times compared to the end of FY 2023. According to the nationwide survey conducted by third-party organization, we were ranked first in communication quality factor in major carrier category. However, it is also a fact that the inconvenience of the customer is not completely resolved in areas with high level of traffic, mainly in cities. Against that backdrop, we advanced diversification of construction method and strengthened collaboration with partners and already have plans to build more than three-fold 5G base stations compared to first half in major cities. By steadily advancing these efforts, more base stations will be built in FY 2026 compared to the first half of this year, and by leveling out the process throughout the year, plan to build base stations exceeding the level of FY 2025 on a four-year basis. We will do our utmost to ensure satisfactory communication service quality to every customer as soon as possible through concerted efforts. Quality experience by customers is steadily improving in major city centers and major railway routes nationwide. Downlink throughput continues to improve. In addition, through acceleration of the efforts we mentioned earlier, by the end of the fiscal year, more comfortable and satisfying communication quality will be offered to customers. This concludes the explanation and FY 2025 Q2 financial result. Thank you for your attention. [Foreign language] So, from the media reporters, we would like to receive questions. We would like to receive questions from the floor in this venue, followed by participants via online. And once again, come back to the questions from the floor. We would like to take as many questions as possible from the reporters. So, we would kindly ask you to limit your questions to two questions per person. I will call upon you, and the microphone will come to you. When you ask your questions, please identify your media name, your name, and then ask your questions. So, for those of you who have questions, please raise your hand. At the hallway side, the second row from the front with the white shirt on, please go ahead. Nikkan Kogyo Shimbun, [Foreign language] Nikkan Kogyo Shimbun of The Daily Industrial News. I have two questions. The first question is regarding d NEOBANK, the nomenclature regarding the name of it. What is the response to that naming? Together with that, around the summertime, I believe you said that SBI Sumishin Net Bank, you wanted to change that name was mentioned. The timing of you will be changing that name as well. If you can share with us, please let us know. That's my first question. The second question is DAZN and Lemino's relation. How is the line going to be drawn between the two, and what kind of synergy effect are you expecting today regarding the broadcasting? The World Cup, you were saying that between you and, sorry, DAZN and Lemino, it'll be half and half. It was reported that way. At the J3, Lemino's broadcasting that, and J2 is done by DAZN, I believe. How are you going to differentiate them? Thank you very much for your question. The response towards d NEOBANK, I believe that it's good. d NEOBANK, together with SBI Sumishin Net Bank, this is a name that we both decided together, and we said that it's better to do that. And we received a proposal from SMBC side for this name, and we are conducting the campaign right now, and that will receive as well. So, I think we are getting good responses. And the change of the company name, we are thinking in that direction. And regarding this, we are in the midst of discussion with the relevant parties. And at the right timing, I believe that there will be an appropriate timin g to share that with you later on. And how did you underline between DAZN and Lemino? You were talking about the World Cup, and I haven't heard about it at all, so I really don't know about it. [Foreign language] As I pointed out, within the DOCOMO MAX customers, [Foreign language] the content is linked to the service, and as a result, it's kind of intertwined, so it's difficult to understand, and I do think that way as well, but from the DOCOMO MAX 's subscribers or users' perspective, whether we'll be able to sort it out a bit more for the DOCOMO MAX customers, we'll work on it, but those services exist on its own, so including that, how are we going to think about the content service? We need to think separately and depending on the situation. There may be an overlap. There will be an overlap, but those areas we would like to conduct easy-to-understand communication with the subscribers and customers. Thank you. Moving on to the next question at the front row. The person with the white shirt, please. Suzuki. And this is related to d NEOBANK. You mentioned that the timing is still not determined, but point integration for the integration of CRM. You also talked about the internet bank, but can you talk about the progress as of now? [Foreign language] Yes, around what timing you will be able to secure the top position? Well, on the midterm, there is nothing that is visible at the moment, but the top position is a company with a mobile phone company. So we are hoping to compete with that and win over that. In terms of the contents, the total amount of deposit is number one in the counterpart, but in our case, SMBC is now growing, so we are trying to make sure that this will be achieved. I don't think it is unrealistic, so we would like to make sure to do so. And for the services, we are now conducting campaigns to increase the number of accounts, but as Mr. Shimada mentioned, we would like to make sure to provide a beneficial service starting from next fiscal year. We are currently preparing for that, and from there, we would like to accelerate. And moving on to my second question, SBI Sumishin originally providing BaaS service, but in the future, what is your outlook, and is there anything that B-a-a-S BaaS? Yes, BaaS is something that we would like to be proactive in the future for enterprise. The needs are very high. Various services, while providing other services, we would like to provide a B2B2C model by providing banking services. We do recognize that there are many partners within DOCOMO Group. We would like to deploy that as well. And SSNB was able to increase the number of accounts with this service. This will be considered as one of the growth engines. Thank you. [Foreign language] So at the center of the room, the lady with. My name is Teruka from Nikkei, the event correspondent of distribution. Before you had a NOTTV, but the customers and cost collection, you struggled with that, and you had the past that you withdrew from that business. Nowadays, there are various services more than that time, and the competition is intensifying. So what is your view on the competition environment? And with the alliance with WOWOW, what are your views on winning and any comments regarding that? I didn't think that I'll be asked about NOTTV at this timing, but NOTTV started as a broadcasting company. So as a business model, it's different than distribution or streaming through the internet. So it was difficult to strike the correct balance between the spending and cost spending.[Foreign language] So dTV, which is before Lemino and d A nime Store. And also, we have alliances with other content distribution companies, and we have many subscribers using our services now. In the market, there are foreign-affiliated companies' services, and there are various services in the market. So in terms of the video or content distribution services, the market is getting close to being saturated, is my feeling. But what becomes the important part is how much of a differentiated content that we'll be able to provide as a service. When we're talking about DOCOMO MAX contents, we're going to reinforce it. At that time, as I mentioned, having a differentiation, meaning that to provide something that can only be enjoyed by us, having the customer select our service is something that's in common with what we introduce. Lemino and the services, especially the reason why we're talking about music, is that WOWOW, as mentioned before, the track record they have in Japan, including the quite well-known major artists, the live content distribution in that field, they have a quite solid track record. To begin with, the production of the external contents, I think WOWOW is actually producing that on their own. We will be able to roll out such initiatives together with them now, and we will have the customers who have the needs for such contents to select the services. We would like to establish the flow as such, and that's why we have an alliance with them now. As you have pointed out, there are various types of video distribution systems, so maybe there is an overlap in terms of the type of contents. But from the customer's perspective, various things comprehensively being covered is an important point. But within that, even though I'm repeating myself, something that's differentiated exists and having that being selected by the customers is where we would like to win the game through that. Is that correct? Is that all right? Thank you. [Foreign language] Next question, please. The person at the front row, the third person from the corridor, holding orange smartphone. Freelance Ishikawa, on page nine on customer platform, customer base. The competition is intensified more than ever, and what occurred here, and this is the first conference for DOCOMO, so I wasn't quite sure what was happening. Q2 is slightly worsening. I mentioned about that, and this worsening is including MNP. But as you can see on the right top, the number of port-in users is increasing compared to last year. And even with that, the worsening means that it is now taken, looking at the current actual, looking from last year's trend, it is around 120%. So in other words, we understand that the actions are taken in depth. The promotional expense is increasing, but still, we are ending up with this result, and that is the current market status. As you said, this is the unprecedented intensified competition. That is what it means. The competitors are having more handset discounts, or what are the reasons? The The users, in principle, against the promotions, the cost injected by each company is becoming quite significant. Of course, on networks, there are customers who have complaints and leaving us. That is true. But what is creating these figures includes the intensified competition in the field, including promotional expense. The second point is there was an eSIM trouble on the launch date of iPhone, and DOCOMO's eSIM seems to be somewhat difficult to use, but you are working hard on security, and I think that is good for the company. But what was the situation? Weren't you prepared for that? Of course, we were prepared for that, but in reality, a quite significant number of customers applied for eSIM because that was the only solution for them. But the response was not sufficient, and I regret that. Going forward, we would like to make sure to prevent this to reoccur. Thank you. Thank you very much. We would like to receive your questions from the reporters participating online. For those of you who have questions, please press the raise-your-hand button and wait. When you ask your question, please unmute and ask your questions. So please press the raise-your-hand button for those of you who have questions. [Foreign language] The Freelance Sano-san, we would like to receive your question. Please unmute and ask your question. My name is Sano, a freelance writer. Can you hear me? Yes, we can hear you. I have one question only. First of all, the selectable benefits that you added for DOCOMO MAX, and you have added Lemino and the anime. So compared to DAZN and d A nime Store, I have a feeling the cost is not good. The d Anime Store is JPY 590, and Lemino is JPY 990, and DOCOMO MAX is JPY 4,000 something. [Foreign language] And the other NBA was JPY 2,000, but I think there's not a benefit cost-wise from the user's perspective. So I'd like to hear your thoughts on this. Well, DOCOMO MAX, to begin with, we wanted the customers to select this service as a value. Of course, selected by our existing customers or subscribers, as well as those who are not using our services as well. We wanted to provide something that is in line with the needs of the customers more, and that is why we are conducting this enhancement right now. As a result, if you look at the individual service as a service, each existing service's pricing is, as you have pointed out. However, we're not placing importance on that part, but rather thinking of what the customers would like to enjoy through what contents, and we wanted to fulfill those needs, and we're focusing on that. So in terms of money amount, well, even though they're not using it, we want to make it in a way that even though they don't use it, that they're paying this money amount. In order to prevent that, what we can do is what we thought. We started strongly from the sports area, and we received various feedback, and we heard various voices. We wanted to provide a lineup that is in line with the customers' and users' needs. That is why we came up with this plan. That's how I would like you to understand it. Understood. An additional question on the same topic? Other than this, moving forward, is there a possibility that you'll be adding more content? Yes, of course. Yes, there is a possibility. That is grasping the customers' needs, and we want to fulfill our lineup. Fandom is what we've been talking about, meaning that a genre that has a lot of fans, sports, has quite a large-scale fandom. Following that, in the artist level, it's kind of fragmented, but the next genre is music, and I believe that is a fact. After that, it will be anime and others. So in addition to that, there are customers that enjoy contents in a comprehensive manner as well. That is why through Lemino, making it a totally different format, but also can enjoy the existing contents as well. So I think we have quite a broad lineup already with this, but of course, we would like to further broaden it. But for now, we'd like to provide this to the customers. Understood. Thank you very much. Thank you. Now, we would like to take questions again from the floor. The person at the front row wearing a green jacket, Ishino Freelance, I have two questions. The first question is, you talked about the competitors' composition, and in the holding companies' financial results, there was an explanation on the impact of abolition of irumo 0.5. Is this a temporary, or the small volume user is taken? Can you talk about the competitors' composition? Large volume, high RPU customers seem to be maintained, or can you talk about such details? And coming to my second question, network strengthening or enhancement, it's still insufficient, is what you explained. But what areas are the areas you need to strengthen? Can you talk about the details? Those are the two questions. irumo impact, rather than taking the share, rather we are no longer able to obtain customers who would respond to the price range of irumo. Those customers who came with the irumo 0.5 churned quite significantly. With the DOCOMO mini rates and volume that we deploy, the competitors are using their sub-brands in this price range. 0.5, although we no longer offer 0.5, it does not mean that we are significantly inferior. Conversely, those customers who churn early would be reduced without irumo 0.5. The quality of the customer base would be enhanced. In principle, this is positive for the company. Network, as I mentioned earlier, mainly in the metropolitan area and cities. In the second half, I mentioned that it will be threefold. Honestly speaking, it's time-consuming. That is a fact. Last fiscal year, I mentioned by the end of this fiscal year, but in order to build base stations, we need to have coordination with the landowners, and it is time-consuming. From the second half of the year, we would like to accelerate, and we would like to make coordination. Compared to the first half of this year, we already have plans to triple compared to the first half. We hope that the customers would have expectations for that. Traffic is growing annually, I believe. Is this something that you need to continuously build, or do you think this will settle? No, in principle, this will continue to increase. As we have been mentioning, it's 1.2 x on a year-on-year basis. This trend is going to continue. With respect to that, we need to continue our efforts. As we do that, cost efficiency is something we need to pursue. For the procurement of the equipment for base stations, we would like to make sure to reduce costs as well. This is being ensured. Cost efficiency should be working positively from fiscal year 2027. I believe that will be the benefit we will be able to enjoy. Understood. Thank you. Thank you very much. Next, the person in the very front row by the window. [Foreign language] My name is Hodi, writer. Thank you very much for your explanation. The alliance with WOWOW is the question I want to ask with you. Music, drama mainly is what this alliance is about. And there will be like a sports too, like the Champions League. Basically, you're going to be supplied with the contents. It's not just the content of the alliance. It seems that some of it will be produced, but within the movie distribution through Lemino, you are going to receive the supply of the movie that WOWOW is distributing. And I believe WOWOW has an on-demand service. But in Bakuage Selection, are you going to incorporate that? Or within Lemino, are you going to create a different menu? Are you thinking of more of a developed or advanced alliance in that way? Well, basically, within WOWOW, what they are rolling out in their services, we are going to receive the license to roll it out. And for the anime like Suikoden, it's something that we will be co-producing. That is what we will do first through this alliance. And also on the Lemino side, they were rolling out the original contents of production. And by this alliance with WOWOW, WOWOW would like to bring it up to even a higher level. And I will be repeating myself, however. And we wanted to provide a differentiated content. And by this alliance, we'll be able to enhance that part. What WOWOW is providing as a service right now, what are we going to do about that, is not the discussion we have right now, but we would like to work on what I have mentioned first. Thank you. [Foreign language] We apologize, but in the interest of time, we would like to take two more questions. The person at the front row with navy jacket. [Foreign language] Keitai Watch, Sekiguchi. The first question is on the network quality enhancement. It would get into FY 2026. I think you mentioned about that for the first time. As far as I understand, you mentioned factors which would take time. You mentioned about various adjustments, including coordination with the landowners. The procedures, are they the only ones which are time-consuming, or frequency of the base stations, or radio interference? Are other factors involved? I would like to know the details. For communication quality enhancement, you used presentation materials such as SH-02E. You mentioned about several measures, but from the second half of this year to next fiscal year, do you have any technological mechanism? For example, next spring, FOMA will end, and a new bandwidth will be available. What are your thoughts in that area? [Foreign language] Yes. It's common. Basically, direct construction-related processes are the time-consuming factors, as I mentioned earlier. So it's not interference-related issues. I hope you would understand that. FY 2026 is something that I slightly mentioned. As you asked in the questions, this is something we need to continue, and we would like to regain the number one position. So by 2026, we would like to continue our efforts three times. We have the plan to increase the base stations to that level, and this will be equivalent to the competitors. So at the end of FY 2025, we should have a considerable improvement, just like the competitors. And in FY 2026, we would like to exceed. And that is the reason why I talked about FY 2026. And the new technological deployment, we do not have any specific idea at the moment. But of course, we just need to carry out what we can do. So we would like to make sure to study that opportunity as well. Thank you. [Foreign language] Just one more question. MNP, if you don't mind, to which carrier was their outflow? Well, this is something I would like to reserve responding to the question. The situation is different depending on the carriers. Thank you. [Foreign language] We would like to take the last question. So the person next to the previous questioner, please go ahead. My name is Kaiba, a freelance reporter. [Foreign language] In November, it was SMBC's position, but in other companies, they establish financial holdings as a separate entity to further reinforce or enhance the financial services. So are you considering establishing a separate company for the financial services? But before, you kind of casually mentioned about enterprise credit cards. If you can elaborate on that, please, as well. Regarding the enterprise credit card, I would like you to wait a while with the d CARD relationship and with alliance with other parties. We are in the midst of preparing and discussing that, so we would like to announce that when it's ready to announce. But regarding your first part of the question, us as well, we have conducted various M&As, and at the very end, well, during this fiscal year, we have acquired a bank, a net bank. So how are we going to comprise the organization? Nothing has been determined, but we are considering various factors. So what you have mentioned is included as our flexible consideration as one of our options. That's how I would like you to understand the situation. [Foreign language] Thank you very much. With this, we would like to conclude the NTT session. Next will be the NTT DATA session. So we kindly ask you to wait for what? To the next session. Thank you. [Foreign language] Thank you very much for waiting and for taking time out of your busy schedule to join us today. We will now begin the press conference for NTT DATA Group Corporation's financial results for the second quarter of the fiscal year ending March 31st, 2026. first, I'd like to introduce today's speakers. [Foreign language] Mr. Yutaka Sasaki, the President and CEO, NTT DATA Group Corporation. [Foreign language] Mr. Tadaoki Nishimura, the Executive Vice President, Head of Group Corporate Strategy Division. [Foreign language] Mr. Keisuke Kusakabe, the Senior Vice President, Head of Finance Division. [Foreign language] I'm Fukunaga from the Public Relations, and I'll be your moderator today. [Foreign language] Today's presentation material consists of only one document, the financial results presentation. It is available on our official website under IR Information. Please download and refer to it as needed. [Foreign language] Now, Mr. Sasaki will present the financial results for the second quarter of the fiscal year ending March 31st, 2026. President Sasaki, please. [Foreign language] Hello, everyone. I am Sasaki from NTT DATA Group. Thank you very much for attending the briefing session of the earnings results today. Here is today's agenda. I will first explain the results for the second quarter of the fiscal year ending March 2025. Please turn to page four. This is a highlight of the second quarter results. Year- over -ear, net sales increased by JPY 120.4 billion, operating profit up by JPY 120 billion, profit grew by JPY 101.8 billion, new orders received increased by JPY 249.2 billion. The second quarter benefited from the use of REITs in data center business, leading to growth across all majors. Up to the previous quarter, we presented profit attributable to shareholders of NTT DATA. However, the majority of the non-controlling stake corresponds to 45% of NTT DATA, Inc., held by NTT. Thus, for greater clarity to NTT, the quarter's results have been presented inclusive of non-controlling interest after the acquisition. Details of each item are explained in the following pages. orders received performed strongly both in Japan and overseas, recording an increase of JPY 249.2 billion year over year. The Japan segment enjoyed great performances across all businesses. The financial, in particular, won large deals, contributing to an uplift of JPY 146.5 billion. As for the overseas segment, North America won multiple large deals, while Global Technology and Solution Services, or GTSS, secured one of the largest ever deals for the data center business, boosting orders by JPY 102.1 billion. Next, here is net sales, which increased by JPY 120.4 billion year- over- year. In the Japan segment, public and social infrastructure, financial, and enterprise businesses grew sales, contributing to an overall segment increase of JPY 56.9 billion. The overseas segment, excluding the FX impact, experienced a decline in North America and APAC, while the transfer of fixed assets to NTT DC REIT helped increase the entire segment by JPY 66.3 billion. [Foreign language] Next operating profit. Let's look at the operating profit, which was up by JPY 120 billion year- over- year. In the Japan segment, the financial and enterprise businesses grew, but the drop in the public and social infrastructure business led to a decline of JPY 5.5 billion. In the overseas segment, overseas business transformation costs rose by JPY 4.7 billion. However, excluding the FX impact, operating profit increased by JPY 800 million, with a gain on the transfer of fixed assets to NTT DC REIT. The segment as a whole achieved an increase of JPY 128.2 billion. Here is a breakdown of the Japan segment results. The financial and enterprise businesses overachieved year- on- year across all majors, including new orders received, net sales, and operating profit. The public social infrastructure business posted a decrease in operating profit despite higher net sales due to a year-over-year loss increase from unprofitable projects and absence of highly profitable projects for central government and related agencies recorded in the previous year. Another factor is the issue and the spend. The progress toward full year forecast is slightly behind. However, we aim to achieve our targets in the Japan segment as a whole. This is a breakdown of the results of the overseas segment. New orders received increased across all units. In net sales and EBITDA, North America experienced a cancellation of large sales orders in the healthcare area and less public sector projects following the change of the government. In EMEAL, U.K. is now back on a year-on-year profit growth trajectory. However, Germany's economic slowdown and the tariff policy affected auto clients, and such reduced sales led to a decline in EBITDA. Although APAC gained from growth in the cloud and security area due to sluggish sales of communication terminal equipment and delayed recovery in order in Australia, the result was down both in net sales and EBITDA. GTSS has continuously enjoyed strong performance of DC business and gained on the transfer of fixed assets, posting sharp increases. All the regional units face challenging situations, but by securing orders and sales going forward, as well as controlling costs, we aim to deliver targets. Next, let me share the progress of our overseas business transformation. Since the previous fiscal year, we have been undertaking a unit-based integration of corporate functions and IT systems, and starting this fiscal year with an aim to increase global competitiveness. We are working on improving the business processes and optimizing business operations across the units. By the end of Q2, we invested JPY 10.2 billion. As of Q1, we will continue to integrate ERPs and optimize corporate functions. Now, I will explain the status of the data center business. The transfer of fixed assets to NTT DC REIT was completed in July, and in the second quarter, net sales and operating profit each amounted to $880 million. Since the transfer price, book value, etc. were finalized, the figures have been revised from the estimated amounts we had provided at the time of the Q1 results briefing session. For investments up to the second quarter, we have spent $962 million so far, and it is on track. While continuing this cash recycling scheme using REITs, we will also leverage third-party capital, such as joint ventures, in the future for investments to promote sustainable growth. This page provides orders received and operating results for the DC business. As I explained in the GTSS, even without gain on the transfer of data centers, the business has been growing steadily. Now, let me cover our focus areas for quality growth. [Foreign language] So let me talk about the focus areas. In this AI-driven era, to maximize the value for society and our clients and deliver quality growth, along with our existing four main stream businesses, we will further enhance our initiatives on AI-imparted new value and productivity and next-gen infrastructure. In AI-imparted new value and productivity, we aim to lead in implementing AI agents in society to improve productivity while generating new optimal value for clients across various industries. In next-gen infra, by leveraging our unique full-stack business portfolio, we will combine data centers and IT services to provide next-generation infrastructure. To this end, together with various partners listed on the right-hand side, we will also strengthen our collaborations and to provide industry-specific AIs and full-stack value, we will work on M&A initiatives to deliver quality growth. Next, let me explain what we are up to on our AI initiatives. In November, a new company with a mission to drive AI business growth is scheduled to be established in Silicon Valley in the United States. With a small yet highly skilled team, the new company will work on creating AI businesses and fostering collaborations and alliances with AI tech vendors and startups based in Silicon Valley to help clients address their business challenges and help them be successful in their businesses. In addition, we will accelerate the internal use of AI to help the NTT Group at large to promote the use of AI. Next, let me explain our 2025 first half for AI initiatives. First, in October, NTT announced the release of tsuzumi 2. Using tsuzumi 2, even for clients managing highly confidential operations, we will provide industry-specific generative AI solutions. Next, NTT DATA, Inc. forged a partnership with Mistral AI to co-develop and sell private AI solutions in July. We will ensure secure use of clients' internal data while mitigating environmental impacts in using AI. Moreover, in May, NTT DATA Group launched a strategic alliance with OpenAI as Japan's first distributor. Our target in OpenAI-related businesses is to achieve cumulative sales of JPY 100 billion by the end of 2027. Lastly, we concluded a global partnership with Google Cloud in August, through which we will work on adopting vertical-specific AI engines and accelerating cloud modernization. Through alliances with various partners and collaboration with the NTT Group, we will endeavor to offer services suited for clients' needs and characteristics. This concludes my presentation. Thank you for listening. [Foreign language] We will now move on to the Q&A session, and we will first take questions from the floor, followed by questions from online participants. [Foreign language] please use the microphone when asking a question. [Foreign language] Now we would like to invite questions from the floor. Please raise your hand if you have any question. [Foreign language] The person in the center in the back. [Foreign language] From Toyo Keizai, I do have two questions. The first one is the gain from the transfer to the NTT Data Center REIT, and then also there has been a reduction in the expected revenue in about JPY 115 billion. And against the original plan, how evaluated the impact or negative impact from that? [Foreign language] So this is relating to the data center REIT [Foreign language] initially JPY 155.4 billion had been estimated at the beginning and against that estimation it was JPY 129.5 billion therefore there's a gap of JPY 26 billion. [Foreign language] in the domestic and overseas businesses, and we are making efforts in growing business to bridge this gap. [Foreign language] Thank you very much. The next question for domestic business environment, I would like to really understand your take on it. And then the Sumitomo Corporation fully made SCSK a full subsidiary, and this seems to be a rather larger development in the industry. So including those, how do you evaluate the current local IT service industry? There have been a lot of M&A activities, and so what's your thinking and plan for M&A in the Japanese market? Also talking about, and also including your capabilities. [Foreign language] As you rightly pointed out, if you look at the Japanese market, so there's a CTC matter and also SCSK that actually happened, and also the Net One, there's an acquisition of the Net One, and there's some kind of consolidation happening. Centering around trading corporations, some market consolidation is taking place because now we are in the AI-driven era, and in the IT sector, the role of the IT sector is in the spotlight right now. Each company is trying to upscale its size. In the AI-driven era, this sector or competitive landscape is likely to dramatically change. Therefore, under the new environment, we would like to fight effectively. And there's a question about M&As, and for M&As, that's one of the strategic options, not only in Japan, but from the global perspective, we are considering the M&A options. And especially now we are in the AI era, headcount-based sales growth model is now shifting towards a quality-based business model. Therefore, new competitive structure or under the new competition rules, how we can acquire missing pieces would be important. And what matters is how we can maximize value for clients, and we would like to aggressively consider that option. [Foreign language] T hank you very much. [Foreign language] any questions? This person in the middle. [Foreign language] And this is Takatsuki from Nikkei, and I do have one question with regards to data center business. [Foreign language] As you mentioned, the going beyond the data center REIT. demand. And demand from the hyperscaler, and then also the increasing demand for AI, and how are you viewing those? And the large data center operators seem to be making a lot of investment, and then also acquiring a lot of funds. And so what sort of a plan do you have for the data center business as NTT DATA? [Foreign language] As informed earlier. As a data center provider, excluding Chinese companies, we are number three in the worldwide market: Equinix, Digital Realty. Those are the top two, followed by NTT DATA Group. On the other hand, hyperscalers have started to construct their own data centers as a current trend. So in addition to their own investment in the data centers, they also purchase some spaces from our data centers, or they are actually renting the spaces from us. In that context, the overall market is growing, and in order to respond to the growing needs, we would like to continue the certain level of investment. In order to do so, we have to run the cash recycling, and that is why our DC REIT has been listed. By leveraging a DC REIT, we are going to run the cycle of cash management. And also for the joint venture, in order to construct data centers, there's a scheme to utilize a third-party capital, and this is under consideration right now, so that off-balance-sheet investment can be available, which will allow us to make a bigger investment. [Foreign language] And any other questions? This person in the front, Morioka from Nikkei CrossTech. With regards to usage of GenAI for system development, especially coding and then testing, and then in the downstream processes, and how are you thinking about using GenAI to reduce the lead time, or how much impact are you currently producing? If you could cite the numbers, that would be great. [Foreign language] In the past three months or six months, in the software engineering arena, GenAI use has been evolving, and internally we have been promoting a wide variety of initiatives. By using GenAI, production technology can adapt those technologies, and in fiscal year 2025, our target is to adapt those for 500 projects. And also for the entire development processes, our target of productivity improvement is 20%. For the fiscal year 2027, we aim to apply the GenAI for 50% of the projects to increase productivity by 40%. In developing software, GenAI is very good at it. In our industry, especially for the software development, I think it's going to be an impactful factor. Therefore, we would like to take an initiative in this space to provide value for our clients. [Foreign language] Thank you, and I have a follow-up question: So in improving productivity in the software development, in facing the customer demand, the price reduction, and then what's the current situation? [Foreign language] Up to now, the business model used to be based on man-hours, but it needs to be slightly transitioned to a value-based model. Let's say productivity was improved by 50%; however, the price remains unchanged, the price cannot be the same, so we need to offer the optimal price. On the other hand, there are some other areas that we didn't offer. For example, in other areas, there will be some more business opportunities by using AI agents. In the wider business areas, we try to offer our services to grow our business. [Foreign language] Thank you very much. [Foreign language] Please raise your hand if you have any questions. And this person in the back. [Foreign language] Thank you very much for your presentation. This is Kumagawa from Nikkan Kogyo Shimbun. I have two questions. The first one, and at the end of September, and you completed this process, now you are fully owned subsidiary of NTT Group. And then what's the synergy that have you been able to produce up until now? [Foreign language] I think it was already answered by Mr. Shimada earlier. Various discussions are underway right now. [Foreign language] The centerpiece of the discussion is as follows: by being the 100% subsidiary company, how we can increase our global competitiveness. I think I touched upon earlier, AI-empowered new value and productivity or next-gen infrastructure. In those spaces, how we can boost the positioning in the global market matters, especially for the AI or cloud or cybersecurity domains. Centering around those domains, discussions are underway. So you tend to look at the synergy in the Japanese market. However, global strategy is one, and then Japan is one of the regions. Therefore, we need to be in alignment with NTT Group for the global strategy. And in order to implement that in Japan, what will be the right approach? And we will consider what kind of assets we should leverage. [Foreign language] Thank you very much. Second question has to do with the forex trade. And at the moment, yen is JPY 153 to $1. So how are you evaluating the current forex movement, and how do you foresee the impact on your business and the business administration and the management? [Foreign language] We developed the business, the rate was JPY 153, and the latest rate is around that rate. In our case, we are not importer or exporter. Rather, in the Japanese yen, we undertake our business plan, and outside Japan, we do the business based on the U.S. dollars. If the yen volume is larger, then there will be some decline. If JPY 153 remains, then that will be preferable for our business plan. For the FX impact, it will be difficult for me to make a comment from the macroeconomic perspective, but we would like to take note of that. [Foreign language] Thank you very much. [Foreign language] We will take questions. This person in the front, and this is from Nikkei. I'm with the Nikkei Shimbun. When you explain the sales in the overseas segment, there are certain regions that might be struggling while the orders are increasing, and EMEAL and APAC are struggling in terms of progress. For these regions, what is your outlook for these regions and also overseas segment? [Foreign language] Outside Japan, if you look back on the past two to three years in the current IT service sector, North America used to be struggling before. For the North American region, they have been working, focusing on winning large deals. Also since last autumn, as a global practice, there is a team using the Indian resources, and especially in the cloud and the security domain, they have been winning the projects. The order environment is quite brisk in North America, and in the third quarter, those orders will be turned into revenue so that we can turn it around. And as for the European region, U.K. has been struggling and also Ireland as well. But finally, they have been on the trajectory for the surplus status. In contrast, Germany is struggling, declining economy, and it is going to make a recovery. And from October, the leadership has been changed, and the turnaround or recovery plan is going to be implemented. And also for EMEAL, including Spain and Latin America, it is on the right track. Therefore, we would like to continue to grow sales and profit. And as for APAC, Australia still requires recovery, and it used to suffer from some unprofitable projects. And in the first half, there's a new leader appointed, and the negative factors have been reduced. In that context, going forward, turnaround is to be implemented so that we can deliver the target. [Foreign language] Any other questions from the floor? [Foreign language] Now we would like to invite questions. Oh, sorry, there's one more question from the floor. So this person in the back, thank you. And this is Nakamichi from Nikkei BP. [Foreign language] And in your PowerPoint presentation, you are going to set up a new company in November in Silicon Valley. I'd like to ask you about that. What's the aim? And what sort of customers are you planning to serve? And what sort of business are you planning to run through this new company? And then also thinking about the partner ecosystem, what sort of partners are you planning to collaborate with? So the Physical AI may be one of the keywords in the AI domain. [Foreign language] So are you thinking about developing and deploying an ecosystem? Can you talk a little bit about those? [Foreign language] The new company for AI is scheduled to be established in mid or later November, and we are going to appoint CEOs and others. And our objective is as follows: because the AI technology itself is evolving so fast, and the global level of technologies need to be understood clearly by ourselves. And LLM developers such as OpenAI or Big Tech vendors, of course, we are not planning to compete against them immediately. But the question is how we can leverage their LLMs. Or like our tsuzumi or we work with Mistral AI in Europe, but how we can combine those small AI to provide solutions or services for clients. Those are the consideration points. And also including the delivery, we are not planning to make a big company to do the delivery. But rather, we are going to have a compact team with specialists, maybe 10 people level, so that the skill sets of implementing cutting-edge technologies can be leveraged by operating companies. And operating companies include NTT DATA, Inc. or NTT DATA Japan or NTT's group companies. So by having their ability, in order to provide global-level technologies for our clients, we would like to position this new company as a core ability. And also for the ecosystem, you mentioned about the Physical AI. For Physical AI, including the R&D, this is one of the key words. Including robotics in various forms, Physical AI is to be penetrated. And as you rightly pointed out, we need to make use of various ecosystems, including our clients. There are such technologies available, so we would like to consider building such ecosystems. [Foreign language] So one confirmation. So for example, a company offering robotics, and is there a possibility that you will work with someone like that? And/or when you say customers, or instead of forging a business alliance with them, basically you're working together with the customers to develop new services? [Foreign language] We do not have a very specific topic yet, so this is just our thinking. We are not planning to develop robots on our own. And there are some companies with robots, and we are good at developing software or connecting cloud and edge and do the orchestration or manage comprehensively. Those are our strength areas. For example, together with Toyota, cloud and also the edge and the vehicles can be connected, and those are going to be key topics. And the vehicle could be Physical AI and robots or edge, how we can leverage that will be considered further. [Foreign language] Thank you very much. [Foreign language] Any other questions from the floor? If not, let's move on to invite questions from online participants. If you have any questions, then please use the raise hand icon at the lower right of your screen. And when it's your turn to speak, please unmute your microphone by clicking the mic icon at the lower left of your screen. Now we would like to invite questions from online participants. Any questions? [Foreign language] Any questions from online participants? [Foreign language] And we still have time left. Now we would like to take any additional questions from the floor. Any questions from the floor? And yes, this person in the middle. And this is Nakai from Diamond. And I have a follow-up question on the data center business. And there was a mention of the demand from the hyperscalers. When you look at the earnings announcement from the big tech, the data center or investment in AI, it seems that they switched their gear into a higher position, which means that the hyperscaler investment in the data center investment seems to be stronger, growing stronger in the U.S. market. What's your view on that? With regards to your investment plan, I understand that you're continuing with the plan that is on par with last fiscal year. I know we are slightly ahead. Do you feel that you need to really step up the level of investment for the next fiscal year? Is there still a possibility that you need to really step up the level of investment for the next fiscal year? You talked about the importance of a cash flow. Are you going to make an investment in the scope that the cash flow allows? Or, can you talk a little bit about your investment judgment? [Foreign language] In the data center business market, as you mentioned, there is a growing demand for GenAI. And there's a demand for GenAI, and also the cloud demand is growing slowly. Major changes include to mitigate the energy consumption because the GPU consumes a lot of energy. So that's a higher burden. And then the cooling technology now is changed to the liquid-based cooling technology. With those changes, we are adapting the cooling technology using the liquid and centered around India. So we have been providing 200 MW level data centers. And also, we see the trend towards sovereign cloud. And that demand, especially in Europe, is increasing. And from the perspective of economic security, dependency on the public cloud should be reduced, while dedicated and secure cloud environment is required. And the data center always comes along with energy. It is required to acquire the land which can supply large-scale power or energy. Hyperscalers and we are looking for good land which can do so. That's going to be the challenge. Also, sometimes the grid could be the bottleneck. So-called off-grid data center. Such data centers are off the grid needs to be established. That's a current trend that we are seeing. In July, DC REIT has been listed. This is a very good step forward so that we can recycle the cash. That means that we will have more cash available on hand, and that's one benefit. Also, we can leverage the third-party capital through joint venture. By leveraging our cash available on hand, we can utilize such funds as well. But the hyperscalers are making investment on their own. But that level is like a two-digit difference. So we will look at the business demand in the field. So depending on each region, we will make an inv estment. [Foreign language] So for about next fiscal year, I'm sure there are a lot of uncertainties. But with regards to the scale of investment, are you continuing with the plan? [Foreign language] For next fiscal year, we are going to develop the business plan. Therefore, I cannot actually share what we are going to make. But we are currently making the same level of investment as previous fiscal year. Probably it's going to be the same level for next year as well. Thank you. [Foreign language] Thank you very much. [Foreign language] Any other questions from the floor? [Foreign language] So this concludes today's presentation of the financial results for the second quarter of the fiscal year ending March 31st, 2026. Thank you very much for your participation. Thank you.