I'm Nouchi, the CFO. Thank you very much for taking the time out of your busy schedules to attend our Fiscal '25 third quarter earnings briefing today.

First, I'll walk you through an overview of our Fiscal '25 third quarter results as well as key updates under Corporate Strategy 2027. Please turn to page 3 of the earnings presentation.

First, let me begin with our financial results. In Fiscal '25 Q3, underlying operating cash flow was ¥763.3 billion, and consolidated net income was ¥607.9 billion.

Supported by improved market conditions, enhanced profitability, and revenue growth across multiple businesses, performance remained stronger than we had initially anticipated. Regarding the full-year forecast, we have reflected changes in the business environment since the second quarter earnings announcement, as well as updated segment-level risk assessments.

Accordingly, we have revised our forecast for underlying operating cash flow upward by ¥20 billion to ¥920 billion, while maintaining consolidated net income at ¥700 billion. Progress against the revised forecast are at high levels with 83% for underlying operating cash flow and 87% for consolidated net income.

While there is a possibility that full-year results may exceed the revised forecast, given the continued uncertainty in parts of the business environment toward fiscal year-end, we will carefully monitor conditions across each business and work steadily toward realizing potential upside. Next, I will discuss progress under Corporate Strategy 2027.

With respect to our value creation framework of enhance, reshape, and create, we have announced several new initiatives since our previous earnings release. By way of example, in the Create initiative, as announced at our recent briefing, we decided to participate in the US shale gas business, representing the largest investment in our history.

In addition, under the Enhance initiative, we have reached an agreement to acquire upstream gas assets in Brunei. Through these initiatives, we expect to generate profit contributions of meaningful scale.

Details of each project are provided on page 14 of the presentation materials for your reference later. Beyond these examples, initiatives under enhance, reshape, and create are all making steady progress.

Under Enhance, expected profit contributions from projects already executed alone account for roughly half of the planned target. Under Reshape, in addition to the completed full consolidation of Mitsubishi Shokuhin, several other projects are currently under consideration.

As for Create, the US shale gas project alone that I mentioned earlier accounts for approximately 80% of the planned progress. Taking other projects into account, we believe that even in the first year, we are already well on track to achieve the plan by a certain degree.

An overall view of progress across all initiatives as well as the breakdown of Enhance, which represents the largest profit contribution, is provided on pages 11 and 12 of the presentation materials. Next, please turn to page 4.

Underlying operating cash flow for Fiscal '25 Q3 was essentially flat year-on-year, despite variations among segments. Consolidated net income was also at a similar level when excluding the absence of large capital recycling gains and losses as well as one-time items.

Even amid a challenging business environment, each business performed more solidly than expected. With signs that performance has bottomed out and steady progress being made across various initiatives, we are gaining increasing confidence in achieving the quantitative targets set forth under Corporate Strategy 2027.

We will continue to push forward strongly with our enhance, reshape, and create initiatives. In addition, our share buyback program of up to ¥1 trillion announced on April the 3rd continues to progress steadily.

As of the end of December, the total repurchase amount reached ¥794.3 billion. Please turn to page 5.

I will now explain progress against the cash flow allocation plan under Corporate Strategy 2027 as well as our financial leverage position. Cash inflows consisted of ¥763.3 billion in underlying operating cash flow and ¥334.8 billion in cash inflows from divestitures.

Major capital recovery items this period included loan repayments from the Quebrada Blanca copper project and collection of deferred payment related to the divestiture of two Australian steelmaking coal mines in the previous fiscal year. On the other hand, we executed investments totaling ¥913.9 billion as cash outflows.

During the period, we completed acquisitions including the salmon farming business at Cermaq. As shown in the investment progress section, sustaining CapEx as well as enhance, reshape, and create initiatives are all progressing smoothly against plan.

Also, as of the end of Fiscal '25 Q3, our net debt-to-equity ratio, net DER, which we use as the indicator of financial soundness, stood at 0.46 times. Due to the recently approved investment in the US shale gas business, net DER is expected to temporarily exceed 0.6 times.

However, we will manage leverage so that it returns to an appropriate level with 0.6 times as an upper guideline by the end of Fiscal 2027, thereby maintaining financial soundness. Furthermore, as we continue to have sufficient leverage capacity during the Corporate Strategy 2027 period, we plan to flexibly and proactively allocate additional capital to growth investments and shareholder returns, taking into account attractive investment opportunities and market expectations.

That concludes my remarks. Next, Mr.

Shimazu, GM of Corporate Accounting, will provide a detailed explanation by segment.

My name is Shimazu, the GM of Corporate Accounting. I'll provide additional details on Fiscal '25 Q3 results.

Please turn to page 6 of the presentation. First, I'll explain the year-on-year changes in underlying operating cash flow, focusing on segments with larger fluctuations.

The segment at the top, Environmental Energy, recorded ¥124.1 billion, a decrease of ¥32.3 billion year-on-year. While there was a reduction in tax burden due to differences in the timing of payments in the Asia-Pacific LNG business, this was more than offset by factors such as upfront costs associated with the start of production at LNG Canada in the North American LNG business.

Next, the third segment from the top, Mineral Resources, posted ¥118.8 billion, a decrease of ¥45.3 billion year-on-year, mainly due to declining market conditions in the Australian steelmaking coal business and lower dividend income from the iron ore business. By contrast, the Urban Development & Infrastructure segment beneath recorded ¥96.9 billion, an increase of ¥40 billion year-on-year, primarily driven by improved profitability at Chiyoda Corporation following contract amendments for the US Golden Pass LNG project.

Next, please turn to page 7 for consolidated net income. In addition to the factors explained for underlying operating cash flow, due to the absence of major capital recycling and one-time gains recorded in Fiscal '24, such as gains on the sale of coal mines in the Australian steelmaking coal business within Mineral Resources and revaluation gains related to Lawson within S.L.C., the decline in consolidated net income is larger than that of underlying operating cash flow.

From this period onward, we have disclosed the factor analysis of year-on-year changes in consolidated net income separating capital recycling and one-time items from adjusted consolidated net income. This analysis is summarized on page 8 for your reference later.

Next, I'll explain the full-year forecast by segment. Please turn to page 9.

As our CFO, Mr. Nouchi explained earlier, we have revised our full-year forecast for underlying operating cash flow upward by ¥20 billion to ¥920 billion.

We have revised forecasts for all segments. The fourth segment from the top, Urban Development & Infrastructure, is expected to reach ¥104 billion, reflecting a ¥20 billion upward revision from the November forecast, mainly due to improved profitability at Chiyoda Corporation, as explained in the year-on-year comparison.

The bottom segment, Power Solution, is projected to reach ¥114 billion, reflecting a ¥10 billion upward revision from the November forecast, driven by increased trading profits in the European integrated energy business and the North American power business. Finally, please turn to page 10 for consolidated net income.

We are maintaining the full-year consolidated net income forecast at ¥700 billion, while revising the outlook for several segments. The segment at the top, Environmental Energy, is expected to reach ¥143 billion, reflecting a ¥15 billion downward revision from the November forecast, mainly due to reduced volumes associated with extended timeline to reach full production at LNG Canada.

The third segment from the top, Mineral Resources, in the Australian steelmaking coal business, while a decline in profits is expected due to factors such as operational issues at underground coal mines and volume decreases resulting from rainfall impacts, taking into account higher copper prices and the strong performance of the mineral resources trading business, it is expected to reach ¥110 billion, reflecting an upward revision of ¥15 billion from the November forecast. Underneath, regarding the Urban Development & Infrastructure segment, it's expected to reach ¥76 billion, reflecting a ¥16 billion upward revision from the November forecast, driven mainly by improved profitability at Chiyoda Corporation, consistent with the underlying operating cash flow outlook.

Additional details by segment and assumptions regarding market conditions are provided on page 17 onward. That concludes my explanation.