Thank you very much for joining us today despite your busy schedule. On behalf of Toray Group, I'd like to take this opportunity to extend my gratitude towards your continued understanding and your interest in our management and business activities.

Now, I'd like to report Toray's business results for the third quarter and nine months ended December 31st, 2025 and business forecast for the fiscal year ending March 2026. Now, I'd like to follow the table of contents shown on page 1.

This is a summary of the business performance and forecast. During the nine months in FY 2025, the Japanese economy continued to recover at a gradual pace.

However, sluggishness in the flow of goods and holding back on purchases were also seen in some areas against the backdrop of growing uncertainties triggered by the US policy shift under the Trump administration. Amid these circumstances, core operating income of the nine months decreased year-on-year to 105.1 billion yen due to the sluggish market conditions and the impact from inventory adjustment, although the company worked on business structure reform and strategic pricing.

The full-year forecast for core operating income increased to 150 billion yen compared with the previous fiscal year. Furthermore, the company is proceeding with share buybacks in line with the resolution at the Board of Directors meeting held in November 2024.

As of the end of January 2026, the total repurchase price of the shares has reached 29 billion yen equivalent to 28 million of shares. I'll explain the details starting from the next page.

I'd like to begin with a summary of business results for the third quarter and nine months ended December 31st, 2025. Please turn to page 4.

Consolidated revenue for the nine months decreased 0.2% compared with the same period a year earlier to 1,919.5 billion yen. Core operating income decreased 3.4% to 105.1 billion yen, and profit decreased 46.6% to 40.2 billion yen.

Page 5 is about special items. Special items for the nine months worsened by 29.1 billion yen to negative 34.1 billion yen compared with the same period of the previous fiscal year.

Toray posted 25 billion yen of impairment losses as profitability worsened in the battery separator film business at the subsidiary in the Republic of Korea due to the sluggish EV market, etc. Page 6 about assets, liabilities, equity, and free cash flow.

As for financial condition at the end of December 2025, both assets and liabilities were affected by the increase in translated yen amount of its overseas subsidiaries caused by yen depreciation. Total assets stood at 3,515.1 billion yen, up 222.5 billion yen from the end of the previous fiscal year, due primarily to increases in trade and other receivables as well as property, plant and equipment.

Total liabilities increased 158.5 billion yen from the end of the previous fiscal year to 1,630.5 billion yen, owing mainly to increases in borrowings. Despite a decrease owing to share buybacks, total equity increased by 64 billion yen compared with the end of the previous fiscal year to 1,884 billion yen, due mainly to increases in other capital components.

Owner's equity was 1,762 billion yen, interest-bearing liabilities was 985.1 billion yen, and D/E ratio was 0.56. Free cash flow was positive at 14.1 billion yen.

Page 7 explains about capital expenditures, depreciation and amortization, and R&D expenditures. Capital expenditures for the nine months decreased by 41.9 billion yen to 102.7 billion yen on a year-to-year comparison.

Meanwhile, depreciation and amortization increased by 1 billion yen to 100.7 billion yen. R&D expenditures increased by 1.6 billion yen to 54.4 billion yen compared with the same period of the previous fiscal year.

Page 8 shows the factor analysis of 3.7 billion yen decrease in core operating income for the nine months on an year-to-year comparison. The Fibers & Textiles segment remained strong mainly in the apparel applications.

Meanwhile, in the Performance Chemicals segment, core operating income decreased due to weak sales of battery separator film and lack of temporary factors including reversal of allowance that increased profit in the previous fiscal year, etc. In the Carbon Fiber Composite Materials segment, profit decreased due mainly to the impact of demand correction.

As for the net change in price, strategic pricing has proceeded steadily. Core operating income decreased 3.4% compared with the same period of the previous fiscal year, and core operating income margin fell 0.2 points.

Using page 9 and after, I'd like to explain the results of each segment. First, Fibers & Textiles.

Revenue of the overall segment increased 3.9% to 804.9 billion yen compared with the same period a year earlier, and core operating income increased 9.5% to 54.8 billion yen. The apparel applications were robust as shipment of the fall/winter clothing in Japan was strong overall.

As for the industrial applications, amid the sense of stagnation in the markets including the automotive applications, the group strived to reduce costs. Page 10 is the Performance Chemicals segment.

Revenue decreased 6.1% to 668.7 billion yen compared with the same period a year earlier. Core operating income decreased 10.3% to 43.1 billion yen.

In the resins and chemicals businesses, spread of the resins business has improved, but sales were stagnant due to impact from the slowdown in the automotive applications. The chemicals business was affected by the worsening market conditions.

In the films business, demand for automotive capacitor and electronic parts-related applications grew, while sales of battery separator film was sluggish. In the electronic and information materials business, OLED-related materials and circuit materials were affected by the slow demand for display panels and intense price competition in China, although a new product for the power inductor applications was launched.

Page 11 is the Carbon Fiber Composite Materials segment. Revenue decreased 4.7% to 212.7 billion yen compared with the same period a year earlier, and this segment posted core operating income of 11.5 billion yen, 18.6% decrease from the same period a year earlier.

In the aerospace applications, sales for a major customer have steadily recovered, accompanying the alleviation of inventory adjustments in supply chain. In the sports applications, sales of the high-end products for outdoor leisure was steady, however, inventory adjustments of the general-purpose products continued.

In the industrial applications, the pressure vessel applications entered an adjustment phase. Page 12, in the Environment & Engineering segment, revenue increased 11% to 180.3 billion yen compared with the same period a year earlier, and core operating income increased 3.5% to 17.6 billion yen.

The water treatment business was affected by the sluggish market conditions in China, even as the shipment for the Middle East remained strong. As for subsidiaries in Japan, sales of a construction subsidiary was steady.

Page 13 is the Life Science segment. Revenue decreased 1.8% to 38.5 billion yen compared with the same period a year earlier, and core operating income decreased by 0.2 billion yen to negative 1.1 billion yen.

The pharmaceutical business was affected by the penetration of generic version of the drug in Japan, while overseas sales grew mainly in China. In the medical devices business, sales of dialyzers for hemodiafiltration was slow.

Page 14 shows the business results of major subsidiaries and regions. At Toray International, sales was strong mainly in the fibers and textiles, but affected by the cost increase.

At our subsidiaries in Southeast Asia, in the fibers and textiles business, demand for the apparel applications and automotive applications in the industrial applications was weak. In the performance chemicals business, spread of ABS resins has improved.

At our subsidiaries in China, in the fibers and textiles business, the apparel applications was steady. In the performance chemicals business, the chemical business was impacted by the worsened market conditions.

As for our subsidiaries in the Republic of Korea, sales volume of the fibers and textiles business decreased stemming from the scale-down of low-profitability applications. However, spread has improved.

In the performance chemicals business, sales of battery separator film was stagnant. Next, I'd like to explain the consolidated business forecast for the fiscal year ending March 2026.

Please turn to page 16. The global economy is expected to continue with a gradual recovery phase.

While the uncertainties stemming from the Trump tariffs will remain high, their impact on the global economy is likely to be limited. The Japanese economy is also expected to continue with its gradual recovery.

However, prevailing economic trends will be affected by the direction of the trade and foreign policies of the US and the responses from other countries, geopolitical tensions and rising prices of primary products, the future AI demand, and the stagnation in the Chinese economy, which may also have a significant impact on the changes in the supply chains and trade structure in the medium to long term. For the fiscal year ending March 2026, Toray revised its full-year consolidated forecast for revenue, taking into consideration its business performance for the nine months and business environment.

The forecast for core operating income and profit attributable to owners of parent remain the same as the announcement on November 14th, 2025. Assumed exchange rate from January onwards is 155 yen per US dollar.

Page 17 shows the consolidated business forecast for the fiscal year ending March 2026 by segment. Based on the business performance for the nine months, Toray has revised its forecast for the Fibers & Textiles and Carbon Fiber Composite Materials segment as well as other relevant segments.

Revenue and core operating income are expected to increase owing to sales expansion in the Fibers & Textiles and Environment & Engineering segments, in addition to the positive effects from the strategic pricing and profitability improvement project. Page 18 shows the comparison of core operating income between the forecasts announced on November 14th, 2025 and the new forecast with breakdowns into segments.

The factors behind the difference are shown on the right side of the table. This concludes my presentation.

Thank you very much.