Good afternoon, ladies and gentlemen. I am Yo Honma from NTT DATA. First of all, thank you very much for attending the earnings results briefing session despite your busy schedule. This is the agenda for today. Let me explain about the earnings results for the fiscal year ended March 2022. Please take a look at page three. This is a highlight of the earnings results for the fiscal year ended March 2022. As you can see, throughout the year, we performed strongly, posting record highs against all measures. As for new orders received, net sales, and operating income, I will explain year-on-year variances by segment from the next page onwards. As for the net income, same as operating income, sales growth and positive impact from the overseas structural transformation contributed to a substantial uplift. As for the dividend, during the third quarter, we made an upward revision. The previous midterm management plan goals of JPY 2.5 trillion in consolidated net sales and 8% of the consolidated operating margin were both achieved. Therefore, we added extra JPY 2 on the special dividend to the ordinary dividend of JPY 19, and we shall pay out JPY 21 as annual dividend. Please look at page four. New orders received. The financial segment faced backlash from the spike with mega bank projects last year, leading to a reduction. However, North America won large projects from financial and corporate clients. At the same time, EMEAL won projects in Spain and Germany, plus there's an FX benefit, and it led to the incremental of JPY 177.5 billion. Please move to page five. Net sales. Japan's key driver was Enterprise & Solutions Segment. This segment increased services for manufacturing in regional and services areas. Overseas, EMEAL increased business in Spain and Germany, plus there are FX benefits. As a result, there is an incremental sales of JPY 233.2 billion. Page six, operating income. For Japan, upfront investment for business growth was made, and also the Public & Social Infrastructure Segment faced red projects. EMEAL unified the global brand, and there is an additional cost because of the extra initiatives. However, mainly thanks to North America and EMEAL structural transformation and the sales growth, the result was JPY 73.4 billion plus. The following several slides explain the breakdown by segment. That was a highlight of the fiscal year ended March 2022. Now moving on to page 12. Let me review the previous midterm management plan. Fiscal year 2019 through to 2021 previous midterm management plan, we focus on four abilities. Ability to grow, ability to earn, ability to transform, and ability to synergize, and we focus on enhancing those abilities. Now, let's revisit the previous midterm management objectives. As you can see here, as for consolidated net sales and client base in consolidated operating margin, we were able to achieve those targets. As for the overseas EBITDA margin, the result was underachieved. However, structural transformation yielded results, enabling North America to achieve 7% of EBITDA in fiscal year 2021. Continuously, we believe that we need to work on profit improvement and digital shift. Next, courage to change, maximizing value for clients, our 3+1 strategy. Strategy one, expanding global digital offerings based on Global One Team, Digital Strategy Office, and Center of Excellence. With these three initiatives, we have accelerated global collaboration. These efforts yielded numerous results. Under the new plan, we are going to evolve these initiatives. For further growth, we are going to enhance global digital offerings. Next, strategy two, delivering greater value to clients based on regional needs. By leveraging long-term relationships with clients, not only the existing projects, but we have created many digital projects, and we have provided new value for clients. Strategy three, maximizing organizational power by increasing individual skills. Training programs and various systems have been enhanced. Also, from the governance perspective, we worked on preventing red projects, reducing the red project ratio against sales to be 0.3% or below. Under the new mid-term management plan, we will continue to work on maximizing organizational power. Finally, NTT collaboration. With many progressive clients, we worked on collaborative projects, and as one united NTT Group, we have contributed to clients. We are going to accelerate NTT collaboration going forward continuously. Based on such previous midterm management plan towards Global 3rd Stage, under the new midterm management plan, we will work on the following, accelerating profitable growth, strengthening digital competitiveness, transforming organization for people to grow, and establishing stronger corporate function to become a truly global company. Now, let me explain the fiscal year 2022 through 2025 new midterm management plan. First, environmental changes. The environmental trend in the society is dramatically changing. Businesses are required to promote business while addressing societal issues and contributing to global environment. Social trend changes include preservation of global environment and more things to be connected, and changes of consumption and lifestyles. Wider adoption of IT and digital have dramatically changed corporate activities and individual consumption lifestyles. Businesses are required to address various issues and needs, and those are becoming more complex and diverse. Underlying factor is advancement in technology. Services are being sophisticated by harnessing data. In order to shape the new society, edge-to-cloud and connectivity-related technologies are becoming more important. Furthermore, securely collecting and analyzing information from things and people's behavior. Expectation to realize such a data-driven society is becoming greater, which can go across organizations and different industries. Next, let me talk about the Global 3rd Stage goal. During the first stage from 2005, we increased global coverage. During the Global 2nd Stage from 2016, we built the global brand. Under the new midterm plan from 2022 to 2025, based on what we have done under the previous midterm management plan, in order to achieve the Global 3rd Stage, we are going to work on our initiatives to be trusted by clients around the world. Under the new plan, based on the mission statement and group vision, we set out an objective of realizing a sustainable future. We will create value for future and connect diverse people with technology so that together with clients, we can strive for realizing a sustainable society. Over the long term, we have built a trusted relationship with clients. With the main expertise on clients' business and advanced technology, we develop system with an ability to create. Also, we have been supporting enterprise systems and industrial infrastructure with an ability to connect people, businesses, and society. As such, we have been contributing to business growth of clients in addressing social issues. By combining these two abilities and by enhancing these abilities, we are going to provide new social platforms and innovative services which can transcend boundaries of businesses and verticals. Next, let me talk about the business combination with NTT Ltd to enhance overseas business competitiveness. On the ninth of May, we announced that NTT DATA and NTT Ltd is going to combine businesses in October 2022. This combination will add NTT Ltd's ability to connect, which will enable us to evolve into a company that can provide total services covering IT and connectivity. After the combination, sales will reach JPY 3.5 trillion, with the number of employees to reach around 180,000, and overseas business will represent around 60%. Here is an overview of NTT Ltd. Sales of JPY 1 trillion, and it provides services for 75%+ of Fortune Global 100. It provides IT infrastructure and related services covering data centers, network, and cloud, and edge. In order to achieve further growth under United Strategy, we will combine mutual strengths so that we can help clients grow their businesses and address societal issues. Next, let me talk about the business combination structure. On October 1, 2022, through a joint investment of 55% owned by NTT DATA and 45% by NTT DATA, Inc. is to be established. In such way, in strategic and tactical aspects, we will accelerate NTT collaboration to drive business growth overseas. This joint ownership is designed to promote one NTT business and increase collaboration in our R&D area. At the same time, by consolidating global trend across NTT Group, we are going to establish stronger global governance to support the business growth. At the same time, with global headquarters and region-based operation units, we are aiming to shift to global management system. In July 2023, under NTT DATA holding company, we are planning to establish Japan business operating company. For the Japan business operating company and overseas Japan operating company, global headquarters are going to support those businesses to promote business in accordance with local needs and regulations. Next, let me talk about the strategies of the mid-term plan. This is the overview strategy. From next page and onwards, I am going to explain each strategy. Strategy one, creating new services by converging IT and connectivity. Through stronger NTT collaboration, we are going to enhance capability to provide edge-to-cloud services. At the same time, we are going to realize cross-organizational and industry services to create new social platforms and innovative services. Strategy two, strengthening consulting with foresight. With industry consulting skills to envision the future of clients and industries, and technology consulting skills to envision the future of technology, as co-creation partner, we will support clients' business growth and drive business transformation. Strategy three, evolving to an asset-based business model. At a global level, we are going to transform our technologies, insights, and expertise into assets, and by leveraging those assets, we are going to maximize the value for clients. Strategy four, enhancing advanced and development technology. In accordance with technology maturity, we will push forward initiatives. In the mainstream arena, we are going to further refine existing core technologies that we already have. In the growth and emerging arena with foresight, we are going to serve as an expert to identify advanced technology that will be adapted in the future. Together with progressive clients, we are going to undertake POCs. Strategy five, unleashing full potential of our people and organization at large. A key driver to create value is our people. It is critical, therefore, to transform our workplace to be attractive. Therefore, we are going to introduce programs to train people so that they can learn advanced technology, and also we are going to introduce systems to make our workplace more transformative. Also, we are going to strengthen headquarters' function to achieve further growth as a global company. In order to support these five strategies, we are going to establish a virtual cycle of investment and growth to achieve the Global 3rd Stage. To be more specific, in addition to industry and technology focus areas, we will have an investment area newly for social transformation such as sustainability or IOWN, so that we can globally push forward strategic investment to create business. Next, let me explain about sustainability management. In environmental changes, I explained that environment surrounding a society is dramatically changing. NTT DATA is seeing this major phase as growth opportunity. Therefore, with a long-term perspective, we are going to further promote initiatives to promote a sustainability in the management. Under the new midterm management plan, we have identified three dimensions of clients growth, regenerating ecosystems, and inclusive society, while identifying nine material issues. We set out a slogan of realizing a sustainable future, and through business and corporate activities, we are going to work on addressing societal issues and contributing to global environment, and we are striving for growing together with clients. Finally, let me talk about KPIs for the new midterm management plan. These are the KPIs for fiscal year 2025. By combining the business with NTT Ltd, our targets are JPY 4 trillion or more in consolidated net sales, 120 large accounts, where we generate annual sales of $50 million, and 10% consolidated operating margin, EBITDA margin overseas 10%. We are planning to double operating income to JPY 400 billion from the previous fiscal year. In light of the dramatically changing environment, based on our mission statement and group vision as a globally trusted global innovator, we are going to create value for future. By connecting people with technology, we are striving for realizing sustainable society with clients. Next, let me explain about the forecast for the fiscal year ending March 2023. Please take a look at page 54. This forecast reflected overseas business alignment with NTT Ltd. As for sales, in addition to the impact of the business combination, we factored in organic business growth, mainly in Japan and FX impact, and we are expecting a large increase. As for operating income, we are expecting an increase driven by sales growth. In order to achieve the new midterm plan, we would like to increase strategic investment. Also we have included the impact of business combination. Currently, NTT Ltd is working on structural transformation. For that fiscal year, the contribution to profit is relatively small, and we are expecting year-on-year decline for the net income. As for the items that are not available for disclosures, after scrutinizing them, we are going to disclose them swiftly. For your reference, the following couple of slides explain standalone forecasts without NTT Ltd combination. The scenario expects both in profit and sales across all segments. Next, let me talk about the dividend on page 58. As for the fiscal year ending March 2022, in addition to the ordinary dividend of JPY 19, based on the year's performance, we are going to pay out extra JPY 2 of special dividend. For the fiscal year ending March 2023, we are planning to pay out JPY 21, JPY 2+. The next page onwards explain key topics by segment and numerical information, and I will skip them. That's all for my presentation. Thank you for listening.
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