Good evening, everyone. I'm Hideki Somemiya, CFO of Resonac Holdings.

I'd like to express my sincere gratitude for your continued understanding and support for the company. Today I will explain the overview of the financial results for the first quarter FY 2026 ending December.

First, please turn to page 2 for key takeaways. There are three main points I'd like to share with you today.

First, Semiconductor and Electronic Materials segment continue to perform strongly. Although the January-March quarter is usually affected by seasonal factors, Chinese New Year, revenue of the back-end semiconductor materials reached a record high on a quarterly basis due to the continued robustness of products for advanced semiconductors, such as AI.

Second, core operating profit increased year-on-year. In addition to the stronger performance of the Semiconductor and Electronic Materials segment year-on-year, the effects of the structural reform implemented in the graphite electrode business in FY 2025 materialized, and the reduction in losses in the Chemicals segment contributed to the overall profit increase.

Third, we revised the first-half 2026 forecast upward. In particular, in the Semiconductor and Electronic Materials segment, products for advanced semiconductors, such as AI, grew faster than our previous forecast, and that led to a significant upward revision of the previous announcement.

Regarding the full-year forecast, while progress has been steady, we have not revised the forecast at this time due to the uncertainty related to the Middle East situation. Now, let me explain 2026 first quarter consolidated financial results.

Please turn to page 4. This slide shows the consolidated results for January-March 2026 and year-on-year comparison.

Revenue for this January to March quarter was ¥307.9 billion. Although the Semiconductor and Electronic Materials segment showed a significant revenue increase year-on-year, overall company revenue decreased ¥13.2 billion year-on-year due to revenue decline at Crasas Chemical and the impact of the transfer of FIAMM Energy Technology, a lead-acid battery business.

Core operating profit increased by 2.3-fold year-on-year to ¥33.6 billion, up ¥18.8 billion. Non-recurring items shown below deteriorated by ¥10.6 billion year-on-year due to factors such as the recognition of one-off expenses associated with revision of the retirement benefit plan in this quarter.

Profit attributable to owners of the parent was ¥15.3 billion, up ¥6.5 billion year-on-year. EBITDA was ¥56.1 billion, and EBITDA margin was 18.2%, up 6.2 percentage points year-on-year.

EBITDA margin without Crasas Chemical, for which consideration for partial spinoff is ongoing, was 21.6%, clearing the target of 20%. Net D/E ratio improved slightly from 0.83 at the end of the previous fiscal year to 0.79 times.

As usual, and as stated in the footnote, net D/E ratio is calculated by evaluating 50% of subordinated loan as equity capital based on the credit rating given by Japan Credit Rating Agency. We continue to work toward improving financial position with the goal of stably maintaining a net D/E ratio of 1 time or less.

Please turn to the next slide, page 5. This graph shows the breakdown of core operating profit change by factor between ¥33.6 billion for January to March this year and ¥14.8 billion in the previous year.

Breaking down this year-on-year profit increase of ¥18.8 billion: first, the sales volume increased profit by ¥11.1 billion due to the strong Semiconductor and Electronic Materials segment; next, sales price reduced profit by ¥5.8 billion, this was due to year-on-year decline in naphtha prices, which led to lower selling prices in Crasas Chemical. Regarding variable and fixed cost, while there were factors in each segment to reduce profit, including fixed cost increase such as labor cost and rising raw material cost, in Crasas Chemical segment profit increased due to year-on-year naphtha price decline, and they resulted in ¥5.8 billion profit increase.

Foreign exchange rate increased profit by ¥1.2 billion, mainly due to the yen depreciation of about ¥4 to a dollar year-on-year. Finally, others increased profit by ¥6.5 billion.

This was due to increased profit resulting from an improved product mix in the Semiconductor and Electronic Materials segment, feedstock adjustment, and higher sales at overseas sales company. Slide 6 shows segment breakdown.

Here, we present revenue, core operating profit, EBITDA margin by segment, and year-on-year comparison. In terms of significant year-on-year changes, the Semiconductor and Electronic Materials segment served as a key driver with 21% increase in revenue and 74% increase in profit.

As for the other segments, except for Crasas Chemical, which showed a decline in revenue and profit due to the periodic shutdown maintenance, all other segments increased revenue and profit. From slides 7 to 10, segment summaries are presented.

In Semiconductor and Electronic Materials on page 7, revenue increased 21% year-on-year to ¥134.7 billion. Core operating profit increased ¥14.4 billion, or 74% year-on-year, to ¥34.0 billion.

The growth in revenue and profit was mainly driven by back-end semiconductor materials, which increased sales volume for advanced semiconductor, such as AI. Device solutions were almost flat year-on-year, mainly due to the impact of some inventory adjustment for SiC epitaxial wafers.

We expect steady expansion of sales in hard disk business in this fiscal year, and as press-released on May 11, we plan to expand the production capacity going forward. The segment's EBITDA margin also improved significantly from 27.1% to 34.0% year-on-year.

Page 8: revenue for the Mobility segment increased by 1% year-on-year to ¥47.3 billion. Core operating profit increased by ¥1.8 billion year-on-year to ¥2.9 billion.

Factors for revenue and profit growth include the recovery of the automotive market in Thailand and increased demand from some customers. The Innovation Enabling Materials segment performed steadily, though results varied by product.

Revenue increased 3% year-on-year to ¥22.7 billion, and core operating profit increased ¥0.3 billion year-on-year to ¥2.4 billion. Segment's EBITDA margin was 17.0%, which kept on clearing the target of 15%.

Next, page 9 shows Chemicals segment. Revenue increased 8% year-on-year to ¥40.8 billion, and core operating loss narrowed ¥4.7 billion to the loss of ¥1.6 billion.

Much of the revenue growth and the reduction in loss was driven by the graphite business, where the revenue increased mainly due to the recovery in sales volume of graphite electrode, and the loss shrank due to the realized structural reform effects. The final page of segment summary, page 10, shows Crasas Chemical.

Revenue decreased by 34% year-on-year to ¥51.7 billion, and core operating profit declined by ¥1.4 billion to a loss of ¥0.5 billion. This was due to the periodic shutdown maintenance from February to April 2026, conducted once every four years.

The progress toward the partial spinoff of Crasas Chemical has been smooth. We have already completed the approval of amendment to the article of incorporation regarding the resolution for dividend at AGM, as well as the submission to the listing application to the Tokyo Stock Exchange.

This concludes segment summaries. On the next page, 11, as major items below core operating income, we present the details of non-recurring items on the left and the financial income and cost, equity in earnings on the right, and year-on-year comparison.

Non-recurring items on the left deteriorated ¥10.6 billion year-on-year. This was due to one-off expenses booked in the quarter in connection with the revision of the retirement benefit plan.

On the right, financial income and cost improved ¥2.1 billion year-on-year to a net loss of ¥2.4 billion. This was due to the foreign exchange loss, which had been recorded in the previous year, was almost zero in this fiscal year.

Finally, equity in earnings were flat year-on-year at ¥2.9 billion. Next, slide 12 shows consolidated statement of financial position.

Regarding assets on the left, total assets at the end of this quarter was ¥2,109.3 billion, remained almost flat from the end of the previous fiscal year. Total liabilities were ¥1,371.3 billion, a decrease of ¥7.8 billion from the end of the previous fiscal year.

This was due to the temporary decrease in accounts payable associated with periodic shutdown maintenance, as well as a reduction in interest-bearing liabilities. Total equity increased by ¥10.4 billion from the end of the previous fiscal year to ¥738.0 billion.

This was mainly due to an increase in retained earnings and a further depreciation of yen. Next, let me explain 2026 first-half performance forecast.

Please turn to page 14, 2026 first-half consolidated forecast. Based on the strong performance in the Semiconductor and Electronic Materials segment, we revised upward the first-half forecast that was announced on February 13.

Regarding the exchange rate assumption for the first half, we set it at ¥156.4 to a dollar based on the actual rate of ¥156.9 to a dollar recorded in the Q1. Under the revised forecast announced this time, we expect the first-half revenue of ¥660.0 billion and core operating profit of ¥74.0 billion.

This is an upward revision of 7% for revenue and 40% for core operating profit vis-à-vis the previous first-half forecast. There are no significant changes from the previous forecast in non-recurring items, financial income and costs, and equity in earnings.

Net income attributable to owners of the parent is forecast to be ¥38.0 billion, up ¥18.0 billion from the previous forecast. Regarding the KPIs in the first-half forecast, EBITDA margin is 18.1%, and EBITDA margin excluding Crasas Chemical is 21.8%, exceeding the target of 20%.

While the progress toward the full-year forecast is steady, considering the uncertainty related to the Middle East situation, we kept the full-year forecast unchanged. The next slide, page 15, shows the revised first-half revenue and core operating profit forecast by segment.

We significantly revised upward the forecast for the Semiconductor and Electronic Materials segment due to strong performance in AI-related materials. For other segment, we have made revisions based on the currently foreseeable factors, but there are no major revisions to the performance outlook.

Forecast for the Crasas Chemical was kept unchanged, as we are currently in the process of applying for a listing in preparation for the partial spinoff. Page 16 and beyond are the appendix, please refer to them as needed.

This concludes my presentation. Thank you very much for your attention.