Operator: It is now time. So we will begin our Q1 2026 Financial Results Conference Call. Thank you very much for joining us. Today, Yamauchi, Managing Executive Officer, will explain the financial results for FY 2026 first quarter, followed by a Q&A session with [ Matsui ], General Manager of Accounting Department. The session is scheduled to finish at 4:50 p.m. Mr. Yamauchi, please start.

Toshihiro Yamauchi: Yamauchi from Sumitomo Chemicals. Thank you very much for taking the time out of your busy schedule to join our conference call today. We'd like to take this opportunity to express our sincere thanks to our investors and analysts for your continued understanding and support of our company's management. I will now explain the overview of our financial results for FY '26 first quarter. Please turn to Slide 4. Before explaining the details of the financial results, let me briefly explain the profit and loss status for Q1. Core operating income increased significantly from JPY 27.7 billion in Q1 of FY '25 to JPY 62.3 billion in Q1 of FY '26. Net income attributable to owners of the parent was JPY 40.8 billion in Q1, up by JPY 45.3 billion from the prior year, thanks to an increase in core operating income. This was the second best Q1 core operating income and net income attributable to owners of the parent on record following Q1 of FY '22, which were JPY 64.1 billion and JPY 70 billion, respectively. In Q1, core operating income improved significantly in Essential and Green Materials, thanks to better profit margins at Petro Rabigh and a temporary gain on the difference between the inventory valuation of materials and their increased market price as well as Agro and Life Solutions due to strong shipments of crop protection products and better margins for feed additives and in ICT and Mobility Solutions, thanks to increased shipments of semiconductor processing materials. Due to our strong business performance and Sumitomo Pharma's JPY 97.8 billion capital increase, the D/E ratio improved significantly to 0.80x from 0.93x at the end of FY '25. Next, more details. For Q1 of FY '26, consolidated sales revenue was JPY 578.2 billion, up by JPY 52.1 billion year-on-year. Core operating income, which shows a recurring profitability was JPY 62.3 billion, up by JPY 34.7 billion year-on-year. Nonrecurring items not included in core operating income totaled a loss of JPY 1.3 billion, an improvement of JPY 900 million year-on-year. As a result, operating income was JPY 61 billion, up by JPY 35.6 billion year-on-year. Finance income and expenses was a loss of JPY 700 million, which improved by JPY 18.9 billion year-on-year. Gains on foreign currency transactions included in finance income and expenses was JPY 1.6 billion due to the weakening yen, an improvement of JPY 18 billion year-on-year. Income tax expenses was a loss of JPY 9 billion, up by JPY 7 billion in the tax burden year-on-year. As a result, net income attributable to owners of the parent was JPY 40.8 billion, an increase of JPY 45.3 billion compared to the same quarter of the previous year. Regarding exchange rate and naphtha prices, which affect our company's performance, the average exchange rate for the U.S. dollar during the period was JPY 159.57 to the dollar, and the naphtha price was JPY 118,500 per kiloliter, resulting in a weaker yen and higher raw material prices compared with the prior year. Next, I will explain the sales revenue by reporting segment. Please turn to Page 6. Company-wide sales revenue increased by JPY 52.1 billion year-on-year and revenue of all segments increased. Regarding the year-on-year change in sales revenue, a company-wide analysis by factor shows that revenue increased by JPY 40.5 billion due to price. This was mainly due to rising price -- product prices in Essential and Green Materials. Revenue decreased by JPY 19.2 billion due to volume. Shipments decreased primarily in Essential and Green Materials due to the transfer of sales rights to Petro Rabigh products in FY '25 and the impact of the sale of Japan A&L's business in FY '25. Foreign currency conversion variance was an increase of JPY 30.7 billion. Next, please turn to Page 7. Our core operating income increased by JPY 34.7 billion year-on-year. Company-wide variance analysis shows that price was up JPY 15 billion, which was primarily due to a gain from the difference between inventory valuations and rising product market prices in Essential and Green Materials. Cost was negative JPY 4 billion, mainly due to increased fixed costs associated with investments in semiconductor-related products in ICT and Mobility Solutions. Volume, including the variance in equity method investment was up by JPY 23.7 billion. This was mainly due to the improvement in equity and earnings of Petro Rabigh in Essential and Green Materials. Next, I will explain the performance overview for each segment. Please turn to Page 8. In Agro and Life Solutions, core operating income was JPY 9.6 billion, an increase of JPY 7.4 billion year-on-year. Crop protection shipments remained steady and the improvement -- improved shipment volume resulted in increased profits. Feed additives profits increased, thanks to profit margin improvement from the rising market prices. Please turn to the next page. ICT & Mobility Solutions core operating income was JPY 13 billion, down by JPY 5.3 billion year-on-year. Profit in display-related products declined due to decline in the selling prices of polarizing films, absence of prior year gain on the sale of the large LCD polarizing film business and decline in shipments due to a shortage of semiconductors. Semiconductor-related products saw increased profits, thanks to increase in shipments due to growing demand for semiconductors. Mobility-related products saw increased profits, thanks to increase in shipments of super engineering plastics driven by China's consumer electronics replacement policy. Please turn to the next page. In Advanced Medical Solutions, core operating loss was JPY 1.9 billion, down by JPY 900 million year-on-year. Profits decreased as profit margins as affiliated companies declined due to the Middle East geopolitical tensions and shipment timing difference for some active pharmaceutical ingredients and intermediates from the prior year. Please turn to the next page. As for Essential and Green Materials segment, core operating income was JPY 27.2 billion, up by JPY 32.7 billion year-on-year. In Japan and Singapore, increases in product market prices generated gains on inventory valuation, leading to profit growth. In Saudi Arabia, Petro Rabigh, our equity method affiliate, improved refining margins and others, which led to an improvement in equity method investment income, resulting in higher profits. Please see the next page. As for Sumitomo Pharma segment, core operating income was JPY 18.8 billion, down JPY 2.2 billion year-on-year. As for cost variances, while costs decreased due to the partial sale of the Asia business in FY '25, SG&A expenses in North America and R&D expenses increased. Regarding volume and other variances, although shipments decreased due to the partial sale of our Asian operations in FY '25, shipments increased as a result of expanded sales of ORGOVYX, a treatment for advanced prostate cancer and GEMTESA treatment for overactive bladder. This concludes the overview of financial results by segment. The next page will explain the consolidated statement of financial position. Total assets as of the end of June 2026 amounted to JPY 3,613.5 billion, an increase of JPY 208.5 billion compared to the end of fiscal year '25. The main factors were the restart of the Chiba plant following its periodic plant maintenance in January through March 2026 and a temporary increase in working capital, including accounts receivables and inventory due to the surge in naphtha prices. Interest-bearing liabilities totaled JPY 1,132.2 billion, a decrease of JPY 19.3 billion compared to the end of FY '25. Equity totaled JPY 1,412.4 billion, an increase of JPY 175.8 billion compared to the end of FY '25. This increase was primarily due to the impact of Sumitomo Pharma's public offering. Next, I will explain the consolidated cash flows. Please turn to Page 14. Cash flows from operating activities was positive at JPY 5 billion, a decrease of JPY 19 billion in cash inflows year-on-year. This was primarily due to a temporary increase in working capital and others associated with the restart of the Chiba plant following its periodic plant maintenance in January through March 2026. Investing cash flow was a negative JPY 49.2 billion, an increase in outflows of JPY 3.3 billion year-on-year. As a result, free cash flow was a negative JPY 44.3 billion, a deterioration of JPY 22.3 billion compared to the negative JPY 21.9 billion recorded in the same quarter of the previous fiscal year. Cash flow from financing activities was positive JPY 55.6 billion, driven by factors such as Sumitomo Pharma's public offering, an improvement of JPY 104.8 billion year-on-year. Next, I will explain our outlook for the first half of FY '26. Please turn to Page 16. I will begin by explaining the business environment surrounding our company during the first half of FY '26. Regarding the economic outlook, while investment in the technology sector is providing solid support for the global economy, the outlook remains uncertain due to the geopolitical risks, including the deteriorating situation in the Middle East. In the main business environment, we use weather icons to indicate our major business sectors and our assessment of their respective business environments. Starting from the top, regarding agricultural chemicals, crop protection products, current shipment remains steady, but the level of inventory congestion and distribution chains vary by region. Regarding feed additives, although profit margin improved in the first quarter, raw material prices continue to soar and the outlook remains uncertain. In the display sector, the mobile market will remain sluggish due to the increasingly challenging procurement conditions for memory chips. The silicon semiconductor will remain solid, mainly driven by AI-related areas. As for the petrochemicals and raw materials, although we have secured the quantities necessary for current production plans, the impact of soaring raw material prices is expected to continue for the time being. This concludes the overview of the business environment. I will now explain the financial forecast summary. Please turn to Page 17. At the time of our previous financial results announcement on May 14, the impact of the situation in the Middle East and other factors were extremely difficult to predict. Therefore, we provided only full year forecast for FY '26 and did not disclose first half forecast. We're now announcing our first half financial forecast. For the first half of FY '26, we expect core operating income to be JPY 125 billion and quarterly net income attributable to owners of the parent company to be JPY 70 billion. Core operating income, excluding gains on the sale of business is expected to double year-on-year. We expect to achieve the forecast for quarterly net income attributable to owners of the parent company announced in May by the end of the first half. Regarding core operating income, in the Essential and Green Materials will significantly improve due to profit margins improvement at Petro Rabigh and temporary gain on the variance between the inventory valuation. In the Agro and Life Solutions, crop protection products shipments remained strong and profit margin for feed additives will improve. In ICT & Mobility Solutions, while shipments of display-related materials are projected to decline, shipments of semiconductor processing materials are expected to increase. That said, regarding our full year forecast, as it remains difficult to predict the future ahead amid ongoing turmoil in the Middle East, we have not revised it at this time. We will reassess and provide an update when we announce our first half financial results. Next, I will explain Page 18, summary of performance forecast. First, our exchange rate assumptions for the first half forecast are based on an exchange rate of JPY 155 to the dollar for the second quarter and project a rate of JPY 157 to the dollar for the first half as a whole. Additionally, assuming that the current situation in the Middle East will continue throughout the first half, we project a naphtha price of JPY 90,000 per kiloliter for the second quarter and JPY 104,000 per kiloliter for the first half as a whole. Based on these assumptions, sales revenue is expected to be JPY 1.17 trillion, an increase of JPY 74.6 billion year-on-year. Core operating income is expected to be JPY 125 billion, an increase of JPY 16.3 billion year-on-year. Operating income is to be JPY 122 billion, an increase of JPY 18.3 billion year-on-year. Quarterly net income attributable to owners of the parent company to be JPY 70 billion, an increase of JPY 30.3 billion year-on-year. As for dividend, interim dividend will be JPY 8 year-end JPY 8 and annual dividend of JPY 16 per share remains unchanged, which we announced in May. Next, Page 19, regarding our forecast for the first half of the fiscal year. Regarding our forecast for the first half of the fiscal year, I will explain the comparison with the same period of the previous year by segment. For Agro and Life Solutions, driven by steady shipments of crop protection products and rising market prices for feed additives, we expect a significant increase in profit year-on-year. For ICT and Mobility Solutions, while shipments of semiconductor processing materials remain steady, we expect a decline in profit due to the absence of the gain from the sale of the large-sized LCD business recorded in the same period of last year and a decrease in shipments of display-related materials. Essential and Green Materials segment due to improved profitability at Petro Rabigh and gains from inventory valuation driven by rising market prices for synthetic resin and other products, we expect a significant increased profit year-on-year. At Sumitomo Pharma, due to the absence of gains from the sale of the Asian business as well as increases in SG&A expenses and R&D expenses in North America, we expect a significant decrease in profit year-on-year. This concludes my explanation.

Operator: [Operator Instructions] We will now appoint the first questioner. Morgan Stanley MUFG Securities, Watabe-san.

Takato Watabe: This is Watabe from Morgan Stanley. Agro and Life is my question. In Q1, you are off to a fairly good start, methionine and crop protection. I want you to do a breakdown. And for the inventory adjustment, you said there are regional variances. So JPY 20 billion in Q2, you're expecting a big profit increase. What is the background to that? And El Nino impact, how do you see the El Nino impact for crop protection? If you could elaborate, please?

Toshihiro Yamauchi: Thank you for the question. So AGL, Agro and Life Solutions. First of all, in Q1, profit was JPY 9.6 billion, which is compared to JPY 2.2 billion last year, it was a significant improvement. But this improvement was mainly due to the methionine feed additives. Due to Middle East situation, the supply/demand is tightening. So in Q1, prices rose and that was the impact. For crop protection, Q1 is not the busy season, busy demand season. And there is not much difference from last year. From Q2 onward, expecting Q2 and onward, we think we are in line with the forecast. And to your question on the El Nino, this year, El Nino is expected to have a big impact. And the impact of crop protection in each region, I think, is your question. The impact of El Nino is mainly not in the Northern, but the Southern Hemisphere. It impacts the Southern Hemisphere more. Basically, rain will not -- it will not rain as much and temperature rises. So the precipitation declines, temperature rises. Now by region, Brazil, first of all, Brazil is a big country. So the Southern part and Northern part are different. In the Northern part, closer to the equator, as I mentioned earlier, precipitation declines and temperature rises, and that is the trend. And this will negatively impact the planting of the crops on one hand. But if temperature rises, insect increases, pest increases, which is a plus. So we don't know which will be the bigger factor, positives or negatives. It's hard to say. On the other hand, in the Southern part, precipitation increases. A few years ago, there was a flood in the Southern part. And so there is a risk of that possibly happening again. And next is India. El Nino impact is already emerging globally. in India, monsoon is coming later. And so the planting feeding is pushed out or becoming later. And so Q1 in India shipment was lower than our anticipation, but it is starting to rain in July. So we're starting to see a recovery. Next is Southeast Asia, Vietnam, Thailand and Indonesia. So rain declines and temperature rises. And so this may impact the planting and seeding. But as I mentioned earlier, if the high temperature continues, the insect or the pests increase. So that may be a positive factor. Australia is roughly the same as Southeast Asia. And Watabe-san, your third question, I could not hear your third question very well. Could you repeat?

Takato Watabe: So Q1 to Q2, you are expecting a big profit increase?

Toshihiro Yamauchi: From Q1 to Q2, the increase. So feed additives will improve and crop protection in Q2, Brazil and Latin America will enter the high demand season and India will also enter the high demand season. So there will be positives coming from the crop protection that is factored in.

Takato Watabe: So this time, your first half forecast was issued, Agro has high probability?

Toshihiro Yamauchi: Yes, we think so.

Operator: Would like to take the next question, Mizuho Securities, Yamada-san.

Mikiya Yamada: This is Yamada from Mizuho. I have a question regarding the ICT and Mobility section. The display performance is weak. That is because the general purpose usage and the large size is not doing well. But overall, the competitors' performance is good. But where you're going, not just with this type, but various things is selling from the first quarter to the second quarter is the demand season. So the semiconductor display on a quarter-on-quarter, I assume that it is going to improve. But is that the case? For the first quarter, JPY 13 billion, the second quarter, JPY 15 billion. It seems that the operating income is not going to change that -- the core operating income is not going to change that much. So the movement from the first quarter to the second quarter in this segment, I would like to know.

Toshihiro Yamauchi: Thank you very much for your question. This ICT part. As you have mentioned, the first quarter results was JPY 13 billion and the first half is JPY 28 billion. So if you do the calculation, the second quarter is JPY 15 billion. Display and semiconductors and others, if we look at them, the display itself towards the first to second quarter, we expect an improvement. And regarding semiconductors, there's no seasonality. Therefore, first quarter, second quarter, we believe that there will not be a major movement between these 2 quarters. And the other mobility part from the first to second quarter, there is not a major factor here. However, there's a slight decline. That is the situation. As for display -- for the displays for mobile applications, we believe that it is going to strongly grow. That is our forecast. However, regarding towards the large-sized displays, our company is starting to wind down in that area. Therefore, we believe that this area is not that good of a performance. And also as the memory shortage we're not being impacted at the high end, but the middle end and low end will start to get impacted. So for us, it will be the touchscreen panels for us. And these areas will be impacted. And as for semiconductors, there's not a large movement between the first and second quarter. However, here, as a forecast, we believe it is steady. The market itself is growing quite a bit. So photoresist and the high-purity chemicals and liquid crystals, they are going to grow steadily this fiscal year. So we don't have any concerns here. For semiconductors, looking at the other company's financial results, the market overall, the wafers June shipment volume was a record high is what was mentioned. And they said that this situation is going to continue. So regarding the wafer delivery to the fabs, we believe between the first quarter and second quarter, it's going to show an increase.

Mikiya Yamada: And the technology node, how it will progress, I believe that your company's product is going to increase. Is the risk factors different or your way of thinking is different from the market? If that is the assumption and if you're saying that it is flat, that's fine, but please explain.

Toshihiro Yamauchi: Just a moment please. Thank you for waiting, Yamada-san. On the first to second quarter, there's a slight flatness that you see. The semiconductor-related part is going to show a growth. However, we have been making various investments towards the semiconductor-related area. And we're seeing that in the first quarter. We're seeing a slight increase in fixed costs, especially from the second quarter onwards, there are things that will start moving from the second quarter. So there's an impact of the fixed cost increase from the second quarter.

Mikiya Yamada: So the fixed cost with the cost variance part, we will start to see a slight negativity. And there's an advanced investment that occurred. So it's going to become this way?

Toshihiro Yamauchi: Yes. The cost variance part the streamlining positive factors included, but also the fixed cost increase, they're both included. So maybe it's difficult to understand. However, this fiscal year, fixed cost increasing is the reason for the shipment increasing, but the profit not increasing as much.

Operator: Next question, SMBC Nikko Securities, Miyamoto-san.

Go Miyamoto: SMBC Nikko Securities, Miyamoto speaking. I have -- so Agro and Life is my question. Page 29, so crop protection sales year-on-year is 12% increase in Japan and the Central Latin America, you're front-loading. So including that, excluding the FX, it is flat year-on-year. So Q1 year-on-year, if you could elaborate on where you stand. And Q2 year-on-year, so Agro and Life sales will look like 30% up. What is the increase in crop protection year-on-year? You are expecting a big jump in profit. So what's the background? And as Watabe-san said earlier, so the distribution stock, there may be regional variances. So if you could elaborate on that, too, in the distribution channel.

Toshihiro Yamauchi: So crop protection sales by region. First of all, North America it is positive plus on the yen-denominated basis. But on a dollar-denominated basis, it is flat or a slight decline. This is because of the time lag in shipment. So it is not that we are seeing some negative foundational essential factors. In Central and Latin America, profit is increasing significantly, increasing in foreign currency-based denominated basis as well. There is a partial front-loading from Q2, and that is also helping the increase. Asia and India. For India, as I mentioned earlier, because of monsoon, there is a shift from Q1 to Q2. So there is a slight decline. In Europe and others, no big change here. And our inventory in the distribution channel, North America and India and Europe, we have already reached the optimal inventory level. But in Central and Latin America, especially Brazil, still has rather high inventory level in the distribution channel.

Go Miyamoto: Next, the trend from Q1 to Q2.

Toshihiro Yamauchi: Yes.

Go Miyamoto: Q2 profit increase on a year-on-year basis.

Toshihiro Yamauchi: Yes. Q2 on a year-on-year basis. Just a moment, please. So Q2 on a year-on-year basis, increase of JPY 35 billion. The reason for this increase is, one, crop protection is increasing and feed additives is also increasing. So to give you some numbers -- crop protection -- so of the JPY 35 billion increase, more than half is crop protection and feed additives, more than JPY 10 billion increase. price will rise further from Q1 to Q2. So that is the positive impact based on our assumption.

Go Miyamoto: So crop protection, Q2 will be 20% increase year-on-year. Which area? INDIFLIN or [ Bio-Ace ] or and region-wise, where would that be? Because this was a big jump in profit. So if you could elaborate, please.

Toshihiro Yamauchi: So by region, all regions are growing. North America, Latin America, Asia, from Q2 year-on-year, they are all growing, enjoying profit increase. Latin America is higher in terms of the amount of profit increase. And as we mentioned in the full year forecast, until last year, Latin America was sluggish, but it is now on the recovery track. And therefore, Latin America recovery is expected to be rather large.

Operator: I'd like to take the next question, Daiwa Securities, Umebayashi-san.

Hidemitsu Umebayashi: This is Umebayashi from Daiwa Securities. I'd like to ask you about Essential and Green Materials, the changes from the first to second quarter. In the first -- the second quarter, on a Q-on-Q basis, the core operating income, you predict to be JPY 12 billion. For the first quarter, I believe there was not much a major change. Japan and Singapore's performance was the reason, but I'd like to know the background on that. And also the Singapore's utilization situation I think I believe that one plant is suspending its operation, but can you share the current situation?

Toshihiro Yamauchi: Thank you very much for your question. EGM's first quarter to second quarter trends, I believe, was your question. This part is as you have imagined, the major factor is that the inventory valuation and the Petro Rabigh situation. For Petro Rabigh at the local site, their financial results have been already disclosed. So I may share with you. The first quarter absent equity method affiliate, JPY 9 billion has been recorded. Second quarter, about JPY 17 billion is included. The local financial results, the January to March, the first quarter was JPY 400 million; the second quarter, JPY 700 million revenue, and that's incorporated. And in the other areas, about slightly under JPY 20 billion deterioration is occurring. This part, the inventory variation is the cause. The valuation of the inventory of the first quarter was JPY 15 billion. But the second quarter, the naphtha price, we reduced it to the current pricing. Therefore, we are expecting it to return in the negatives. That is the situation. Therefore, the inventory valuation and Rabigh other than these 2, the first quarter and second quarter, there is not much of a change between the 2 quarters is how we look at it. Regarding utilization, you asked a question. The situation both in Japan and Singapore, it will not -- it has not been changing from the first quarter is the recent situation. As for raw materials and naphtha, we are able to procure them with consulting with the customers, the necessary amount is produced and sold at an appropriate pricing is the situation. Therefore, here, there is no major positive or negative. Does this answer your question?

Hidemitsu Umebayashi: The Singapore part, do you have an outlook that the utilization will increase a bit? Well, maybe the second quarter, you are looking at it to be flat. But if you get more naphtha, is it going to increase?

Toshihiro Yamauchi: Well, currently -- we are not thinking of increasing the utilization. Right now, in line with the customer demand, we are operating. Therefore, it's not that we are receiving additional large-scale inquiries. So for the time being, we believe we will maintain the current situation.

Operator: So next question is from Nomura Securities. Okazaki-san.

Shigeki Okazaki: This is Okazaki from Nomura Securities. Can you hear me?

Toshihiro Yamauchi: Yes.

Shigeki Okazaki: My question is on Agro and Life Solution. Methionine, you mentioned that from Q1 to Q2, the market price will rise. But the current spot price seems to have peaked out. So your sales price shipment has some time lag from spots. And so the market price will rise in July, September vis-a-vis April, June. Is my understanding correct?

Toshihiro Yamauchi: Yes, you are right. Basically, we do not sell in spot much. We sell to our customers based on the contract. So we refer to spot price and decide on our prices. So there are some time lags.

Shigeki Okazaki: And basically, 180,000 tons per year capacity and this high level is continuing in Q1 and Q2 and it's difficult to forecast the second half. But if you have any comments you could share with us for the market price.

Toshihiro Yamauchi: First of all, capacity utilization will be full capacity. We are maintaining a full capacity operation. For the second half, it's difficult to forecast. And that is why we have not issued a full year forecast. We need to -- we ascertain further and make the right decision.

Operator: We are getting close to the scheduled ending time. So we'd like to consider the next question as the last question. UBS Securities, Omura-san.

Shunta Omura: This is Omura from UBS Securities. Thank you very much. I'm looking at Page 9 and Page 24 for ICT and Mobility Solutions. On Page 9, there's the factors for volume plus positive and negative numbers. So I'd like you to break this down and give me a quantitative explanation. And on Page 24, under mobility, it says that to make the sales price appropriately with the sales price, it is a positive. But on Page 9, with the volume comment and the sales price, there is no comment. So I'd like you to supplement the explanation in those 2 areas.

Toshihiro Yamauchi: Just a moment, please. First of all, on Page 9, where it says the volume and others, it's almost close to 0, but there's a positive and negative plus and minus. The positive factors will be the semiconductor materials is positive. it's becoming positive number. I cannot share with you numbers here, but several 10 billions yen -- in the middle of several 10 billions of yen. And also here, the impact of yen depreciation is included. Here as a segment, it's about JPY 50. So compared to last year, it's a JPY 15 depreciation, so that much is included. And the other areas will be the negative part. These will be display related. And over here, last year's sales gain, part of that, the large-sized TV business was sold or divested. And this year, that does not occur. And for the semiconductor part, the middle end and low-end part is not performing well. But actually, the touch screen is being impacted by that. So basically, those factors are included in here is how I would like you to understand this. And also where on the mobility part, the difference in sales regarding price optimization, the raw material prices are increasing. Therefore, the price is being increased in line with that. And that's where the difference in revenue is showing. And you see a lot of that in Essential Materials. But in other areas, the crude oil-derived products, there is a cost increase. And that part also is incorporated or passed on. So that's why it is like this.

Shunta Omura: You're saying that it is not written in the core operating income.

Toshihiro Yamauchi: It's not written. It's not that large. We're just increasing it only the amount that the raw material price increase. I hope you will understand in that way.

Shunta Omura: The mobility volume difference on Page 9, it is not that large, but you still wrote it on this page.

Toshihiro Yamauchi: Well, but in mobility, the Chinese economic stimulus measures, there is a replacement of home appliance. And there, a lot of the super plastics are used. So that is used as the positive factor. So maybe you've already seen it and know. So the -- we changed the material by showing you the sub -- by subsegments by products. And so that's why there, even though the number is not large, it is written.

Operator: We have exceeded the time, so we would like to close today's conference call. Thank you very much again for your attendance today. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]