It's time to start the meeting. Thank you for joining this conference of ORIX Corporation for first quarter consolidated financial results for the 3-month period ended June 30th, 2026.

I'll be the master of ceremony, my name is Tomioka with IR. Thank you.

The attendees at this conference are Masataka Yamada, Senior Managing Executive Officer, Chief Financial Officer and Chief Strategy Officer; and Kazuki Yamamoto, Operating Officer responsible for Investor Relations. Both Yamada and Yamamoto will provide you with explanation, which will be followed by Q&A.

The whole meeting should last approximately 1 hour. Now we would like to hand over to Yamada-san.

Thank you very much for taking time out of your busy schedule to attend the ORIX Group financial results briefing today. I am Masa Yamada, ORIX Group CFO and CSO.

Without further ado, I'd like to explain the financial results for the first quarter of FY 2027. First, please turn to page 2 of the presentation deck.

The points we would like to convey at today's briefing are the following three points: net income is the first; stronger core earnings power and robust capital recycling; and the third, first-half earnings forecast and dividend policy. I will explain the first and the third points, and then Operating Officer Yamamoto, who oversees IR, will explain the second point.

The first point is net income. Net income for the first quarter was ¥280.8 billion, an increase of ¥173.5 billion year-over-year, marking the highest quarterly profit on record.

Progress against the full-year net income forecast of ¥530 billion was 53%. Gains related to the sales and valuation gains on Kioxia shares held by Toshiba, one of our investees, contributed significantly.

The second point is ORIX's stronger core earnings power and robust capital recycling. Regarding our core earnings power in the first quarter of this fiscal year, ORIX Europe expanded its AUM to record-high levels primarily through Robeco.

Market appreciation was the main driver of the increase, and ORIX Europe also steadily acquired new money. As a result, asset management fees increased significantly.

Additionally, the transportation equipment business benefited from favorable market conditions, and all three business lines—aircraft, Avolon, and ships—achieved year-over-year profit increases. Next, regarding capital recycling, we proceeded with the exit as planned for domestic PE investee Sugiko, as well as multiple PE investments at ORIX USA, including Peak Utility and Network Connex.

Regarding ORIX Bank, the transfer of all shares to Daiwa Securities Group was completed on August the 3rd. Additionally, as announced on the same day, we have signed a share transfer agreement for the 100% acquisition of AerFin, a major aircraft parts-out company.

We are steadily advancing capital recycling while maintaining a balance between investments and divestments. The third point is the first-half earnings forecast and dividend policy.

We have calculated our first-half net income forecast at ¥840 billion. Of this, ¥300 billion is categorized as adjusted profit, and ¥540 billion, which is non-cash profit, is categorized as Kioxia sale and valuation gains.

We have changed our policy to use adjusted profits as the source of dividends. The full-year net income forecast of ¥530 billion remains unchanged.

Details will be explained on the following pages. Please turn to page 3.

I will explain our first-half net income forecast for FY 2027. Our net income is significantly affected by fluctuation in the price of Kioxia shares held by Toshiba.

This page shows the results of our calculation of the first-half net income forecast based on Kioxia share price at the end of June. The blue bar graph on the furthest left represents the full-year net income forecast of ¥530 billion we announced on May the 11th, calculated based on the assumption that Toshiba would continue to account for Kioxia-related gains and losses as equity method earnings.

The box immediately to the right briefly explains our announcement of May the 21st, which was the result of calculating the impact on our first quarter results following our revised assumptions, namely Toshiba's change to mark-to-market valuation of Kioxia shares in its full-year results for FY 2026. Next, the gray and red bar graph, second from the right, shows the first quarter net income of ¥280.8 billion mentioned on the previous page, broken down into ¥121.7 billion of Kioxia sale and valuation gains in gray, and ¥159.1 billion of adjusted profits in red.

This Kioxia sale and valuation gains of ¥121.7 billion is based on the valuation gains recorded by Toshiba using Kioxia's share price at the end of March, which was ¥19,080, as shown at the bottom of this page. Finally, the bar graph on the far right shows our first-half net income forecast, which was also calculated based on Kioxia's share price at the end of June, which was ¥89,680.

Sorry to repeat myself, but the first-half net income forecast is ¥840 billion, which includes: one, Kioxia sale and valuation gains (gray) of ¥540 billion; and adjusted profits (in red) of ¥300 billion. Next, please turn to page 4.

The reason we kept the full-year net income forecast unchanged at ¥530 billion is that it is difficult to predict the impact of Kioxia sales and valuation gains on our full-year net income. For every ¥10,000 change in Kioxia's share price, our after-tax Kioxia sale and valuation gains fluctuate by ¥57 billion.

This is calculated based on Toshiba's holdings of Kioxia shares as of the end of June. Kioxia's share price was ¥89,680 at the end of June, and the closing price yesterday, August 5th, was ¥54,300.

Depending on Kioxia's share price at the end of September, we may record Kioxia sale and valuation losses in the third quarter. Now, with the improvement in core earnings power as a backdrop, we plan to steadily grow adjusted profits in the second half as well.

Now next, please turn to page 5. This page explains the change in dividend policy for FY 2027 fiscal period.

In the center of the page, we have again given a definition of Kioxia sale and valuation gains. This refers specifically to the portion of Toshiba-related investment gains and losses related to the sales and valuation gains on Kioxia shares after tax.

Under our revised dividend policy, we will define adjusted profits as the portion of accounting net income excluding Kioxia sale and valuation gains, and use this as the source of dividends. There is no change to our policy of paying either a 39% payout ratio or the previous year's dividend of ¥156.10, whichever is higher.

Based on the first-half adjusted profits forecast of ¥300 billion and calculated under the revised dividend policy, the interim DPS for this fiscal year will be ¥107.27. This concludes my presentation.

Next, Operating Officer Mr. Kazuki Yamamoto will provide some additional commentary.

Yes,

I'm Kazuki Yamamoto, overseeing Corporate Planning, IR and Sustainability. I will use page 6 and 7 to talk about Japan and APAC, Infrastructure, USA and Europe, and Insurance.

For those new segments, I would like to talk about the pre-tax profits and assets year-over-year, and also comparison against the end of a prior fiscal year. Infrastructure performed well with higher profit, excluding large gains on sales recorded in Q1 of the previous fiscal year.

Profits increased year-on-year in three segments excluding Infrastructure. Assets increased versus end of a prior fiscal year at ORIX USA, in USA and Europe segment, due to expanded loaning executions, but there is no significant changes in the other three segments.

I would like to use some supplemental material to explain. Please turn to page 13.

Profit for Japan and APAC was ¥289.8 billion, an increase of ¥237.6 billion year-over-year. In addition to gains of approximately ¥62.3 billion from sales of Sugiko, a domestic PE investee, the auto business expanded new lease origination, and that contributed.

Excluding the ¥179.8 billion from Kioxia sale and valuation gains, segment profit was ¥110 billion, an increase of ¥57.8 billion year-over-year compared to the ¥52.2 billion. Asset increased slightly because of new execution, and the equity investment increased Toshiba and Asia Pacific FX, but balance was slightly declining in Greater China.

Please refer to page 15 for the list of PE investees exits and new items, and also for breakdown of APAC and Greater China, please refer to page 16. APAC and Japan accounts for 33% of the total segment asset.

Please turn to page 17. Infrastructure segment: segment profit was ¥43.3 billion, a decrease of ¥25.1 billion year-over-year.

If we exclude the absence of the sales on gain from the prior year, it's actually an increase. Avolon and ships business benefited from favorable market conditions and achieved growth in both gains on the sales of aircraft and lease revenues.

We will try to close the deal by 2026. For energy, there's been problem with the output restriction in renewable energy, and the profit was down.

Concession, including Kansai Airport, actually declined in profit year-over-year. The details are shown on page 18 for your reference later.

Segment assets: while strong performance at Avolon and the continued investment in ships boosted assets, this was offset by aircraft sales and exit from logistics center in real estate, and it was down slightly year-over-year. Moving on to page 22, USA and Europe: segment profit was ¥63 billion, an increase of ¥52.4 billion year-over-year.

ORIX USA recorded fair value gains from PE investments, and Robeco and others overseen by ORIX Europe significantly expanded AUM and grew fee income. As for segment assets, NXT Capital loan asset-based lending continued, and this pushed up the numbers.

As for ORIX USA, please refer to page 23 for LOB profit and asset breakdown for your reference. Moving on to page 25, Insurance segment: segment profit was—this is mostly ORIX Life, but it was up ¥3.9 billion at ¥28 billion.

Fed by strong earnings from yen-denominated whole life insurance products newly launched in the previous year, and also we acquired high-value contracts for corporate high-net-worth clients resulting in increased insurance profit. Investment profit was also strong.

Assets increased slightly as investment assets grew on the back of expanded premium income. Please return to page 6.

For the four segments, based on their performance in the first quarter, as you can see at the bottom, segment profit basis, this was 173%, and for pre-tax profit, 161%, and net income, 162%. Compared to the prior year, the profit was up in each of these lines.

The progress is 53% against the full-year forecast. Moving on to page 7, at the end of the line, you can see the segment asset in total: ¥14.4261 trillion, up ¥190.9 billion year-over-year.

The total assets was ¥18.257 trillion, including ¥3.262 trillion for assets from discontinued operations. Please turn to page 8.

This page shows the relationship between the business lines, comparing the four new segments and the three categories—Finance, Operations, Investments—that we have been using to clarify the understanding based on this. Please turn to page 9.

This is the full-year outlook, and also the pre-tax profit and the progress year-over-year for the three conventional categories. Q1 profit for Finance was ¥45.2 billion, an increase of ¥6.6 billion year-over-year, with achievement of 27% against the full-year plan.

The main driver of the profit increase was Insurance. Please note that both the full-year forecast and the Q1 results do not include profits from ORIX Bank because this is going to be classified as discontinued operation in Q2.

Q1 profit for Operation was ¥55.4 billion, a decrease of ¥8 billion year-over-year because of the absence of the gain on sales of the prior year. ORIX and Robeco fees are strong, and also domestically ORIX Auto has been continuing its strength, and therefore the progress was 23%.

Last but not least, Q1 profit for Investment was ¥323.5 billion, and this includes Kioxia. The overall progress was 112%, exceeding the original plan.

If we exclude Kioxia sales and valuation gains, the profit was ¥143.7 billion. In this case, an increase would be ¥90.4 billion year-over-year and 50% progress.

The dotted line in the middle is representing what I've just explained. Moving on to page 10, capital recycling for this year: capital gain recorded was ¥115.7 billion, and cash inflows from capital recoupment was approximately ¥300 billion.

PE unit and ORIX USA exited PE investees and made steady progress. Additionally, we sold logistics facilities and multiple aircraft.

Cash outflows was approximately ¥80 billion. In addition to the PE investment in Nihon Information Industry Corp as first deal for the joint fund established with Qatar Investment Authority, we have been investing into well-performing businesses in logistics, aircraft, and ships.

Now, cash-in was much higher than cash-out. Based on the current status of pipeline, we will continue the capital recycling and optimize the portfolio.

The full-year outlook remains unchanged from the forecast announced in May, as you can see to the right. AerFin acquisition has been already announced, and ¥80 billion new investments actually includes this.

Share transfer of ORIX Bank and equity transfer of Network Connex, a PE investee from ORIX USA, have already been completed in Q2 and already reflected. As for other new investments, main areas continue to be domestic real estate, PE investments, aircraft, and Osaka IR.

AerFin, a major aircraft parts-out company, through ORIX Aviation—well, with AerFin joining the group, we aim to expand our business foundation across the entire aircraft value chain, from aircraft leasing to post-retirement parts utilization and in-house asset management services. Capital gains amount mentioned earlier does not include profits and losses recognized from equity method investees, such as Toshiba.

Please turn to page 11, shareholder returns. As Yamada has explained, interim dividend based on the adjusted profit is set at ¥107.27 per share.

For the full-year forecast, well, as Yamada explained, the net income forecast is maintained at ¥530 billion, and therefore the full-year dividend forecast is steady at ¥187.36. Based on changed dividend policy and also based on the pipeline profit and investment recouping, we will continue to [unclear] and excess capital, and this stance has not really changed.

As for share buyback, against the total amount which was announced at ¥250 billion in May, at the end of July we have purchased ¥78.4 billion, progress of 31%. For this fiscal year, full-year payout ratio, including the dividends and share buyback, is maintained at 85.9%, as disclosed in May.

That's all from me. Thank you.

Thank you very much. We are now ready for the Q&A session.

If you wish to ask a question, please press the raise hand button at the bottom of the Zoom screen. When your name is called, please unmute yourself and start asking your question.

Now, in terms of the question, please refrain from asking more than one question. We have from J.P.

Morgan, Sato-san, over to you.

Thank you very much for your presentation. This is Sato from J.P.

Morgan. Just one question, and this is to do with Kioxia sales and valuation gain.

On page 3, I know that there is an explanation on this page, but in accordance with this page, to begin with, to the original plan, any additional profit is to be ¥70 billion, I suppose. From the adjusted profit, ¥171 billion is to be adjusted.

What was incorporated in the original plan was ¥50 billion of an adjusted profit. This is the target for the adjustment, I suppose.

Based on this presumption, all those that are going to be excluded for the full year, would you be able to get that back by the full year, by the time of the end of the year? Would you be able to beat the ¥530 billion, your original expectation for the full year?

Also, ROE I'm sure is proved to be important as well. Now with regard to ROE of 11%, I suppose the adjustment is required for this ROE as well.

Especially for the denominator part, just like the policy that you have announced this time, the Kioxia sales, valuation gain or loss, can I take it that you're going to be making kind of a similar adjustment to the ROE as well?

Thank you very much for asking the question. Thank you for pointing out all that you have shared.

So ¥520 billion, to be precise, on page 4, you can refer to the chart, and it is a pretty complex. So ¥530 billion, you can see it is slightly short of this amount.

As for this, on a continued basis, in the second half, there is a certain pipeline where we have a great expectation for. I'm sure we'll be able to make up for the shortcomings through those pipeline in the second half, but we have not reached to the extent whereby we'll be able to incorporate this expectations yet at this point in time.

As for ROE as well, as you have pointed out, whether it is going to be an adjustment for the denominator, or are we going to be adjusting both the numerator as well as the denominator, or would it be based on a new idea for ROE, or ROE itself, the target may have to be changed, is currently being discussed actively internally. Once we know the clear direction for sure, we would update on the latest understanding and thinking to the investment community as soon as possible.

Thank you very much. Understood, thank you.

Thank you. Next, Takemura-san, Morgan Stanley, please ask your question.

Thank you. This is Takemura, Morgan Stanley MUFG.

I have a question about Q2 progress and also outlook. Excluding the impact of Kioxia, in Q1 you've landed at ¥159.1 billion, but for the first half you are aiming for ¥300 billion, in the second quarter you are planning for ¥140 billion of profit, I presume.

ORIX Bank gain on sales is more than ¥120 billion pre-tax. If we take that out, then a profit for the second quarter is only just over ¥50 billion.

Are there any downside risks that you are assuming for Q2, or are you just being conservative and you're planning to exceed the plan? How do you see the progress of the first half of the fiscal year?

Please share your thoughts.

As you have pointed out, for Q2, ORIX Bank divestiture post-tax profit is included, your calculation is correct.

With regard to the remainder of the balance, there are two things, as you said: one, we're being a little bit more conservative; and the other is there could be some one-off factors. Based on multiple factors, we have decided on this number, and we cannot really break it down for you, but please understand that there are two aspects, both aspects.

Understand, thank you. If that is the case, 25% or less progress in terms of operations, but you are assessing that the progress is solid?

Right. Recurring revenue has been moving quite steadily, yes, that's our assessment.

Understand, thank you.

Thank you for the question. The next person is from SMBC Nikko, Muraki-san, over to you.

This is Muraki from SMBC Nikko. If I could ask question about page 3 in addition to what has been asked already: first of all, this adjusted profit, the upside as well as the downside, I know that there has been some discussion about this topic, but within this item, I know that there's non-cash portion.

What you will be receiving from Toshiba, about the ¥51 billion or so, in the second quarter, this red part, is it going to be included in this ¥300 billion, may I take it? Also, if there was to be a downside risk in the Greater China, I know that you have posted some losses from the Greater China region.

Are there any other impairment that you may have included?

You see, we have applied the equity method accounting, even if there was to be any distribution, it doesn't hit our P&L. It will be an adjustment on the balance sheet rather.

Therefore, with regard to this amount, it is not from the P&L perspective, but rather the investment in the future as well as its return, and also the capital structure, and also at the same time the ROE in mind towards the end of this fiscal period, how to treat this is what we need to decide for ourselves. Also with regard to this valuation loss in Greater China, there are numbers of public equity that we hold, more than a certain amount during a certain period, and if it has gone below our threshold, we would be accounted to be the impairment or valuation losses, and there has been some of this that was applicable.

I see. Which means that for the quarter, from Toshiba, the cash portion that you have received, Kioxia's sale and valuation, it is included in this portion, but for the full year, it may be the case that you're not going to be including in that sales or valuation of Kioxia, but rather it will be incorporated in the adjusted profit rather than a P&L from the perspective of the fund itself.

In other words, we will take a comprehensive approach, and how to treat this, not to kind of incorporate this into the formula, we may perhaps kind of think about the shareholders return from a different angles or different way of thinking. That's what it is, thank you.

Thank you very much. Daiwa Securities, Watanabe-san, please ask your question.

Yes, this is Watanabe, Daiwa Securities. I have a question about AerFin and the impact on your capital and also contribution to profit, and what kind of synergy you would expect from this deal.

Impact on capital or equity: well, goodwill, and also intangible asset depreciation and non-depreciation, we have to separate those, but the purchase price versus the book price, we cannot disclose this information, but there's going to be a number that will explain the difference between the two.

In terms of profit contribution, there is a public disclosure on the UK side, contribution is expected in line with the number that's been disclosed in UK, but depreciation of intangible asset will have to take place as well, so that will have a slight negative impact. As for synergy, temporarily, we will be expanding value chain and completing the value chain, that is the context of this acquisition, but there are also additional synergies that we would expect: complementary relationship in terms of customer base.

In our aircraft lease business, we have customer base, AerFin has their own customer base, and some of them are not overlapped, which means that we would be able to make referrals of customers to each other, so that's another part of synergy that we expect. Thank you.

In terms of profit contribution, is it going to be about ¥10 billion segment profit contribution at ORIX? Would that be in line with your expectation?

Additional contribution will be in line with the profit disclosed by the other company, the target company, but as Yamada has mentioned, from lease, acquisition, parts-out, we will be able to compound these benefits, which means that we can push up the revenue for the whole life cycle. Watanabe-san, as you have rightly mentioned, over the long term, it will have a bigger contribution to the profit growth.

That is our expectation. That's very clear.

Thank you.

Thank you very much. It's Fujino-san from BofA Securities.

Thank you very much for this opportunity. The P&L from the Europe and America, USA and Europe, especially ¥59.6 billion worth of securities sales and valuation: so this is a PE investment.

In the second quarter, acquisition was completed in the second quarter than the first quarter, I think. This is a ¥59.6 billion, but US only has ¥42 billion, which means that without this, USA is still in deficit, it's making losses?

What is the current status, can you please explain?

Yes, I would like to check the numbers first. This is Yamamoto speaking.

The slide that you can see is pre-tax profit breakdown, and ORIX USA Q1 ¥12.9 billion, and ORIX Europe ¥20 billion or so. Out of these, ORIX USA private equity valuation contributed, which was a positive contribution this time.

For some of the businesses, profit and loss are being balanced and we could make some improvements as well. I think that would be the explanation of the status.

In Q1, for Hilco, the number still negative, as you can see. From PMI, we have seen some neutral market status, and we are trying to grow stably.

Please give us some more time to show you the benefit of the acquisition. At the global IR conference, COO Suzuki has provided explanation: last year, for one-off factors, we had some negative factors, but in order to recover from that, we know exactly what to do, we have clear strategy.

We will be implementing those strategies in ORIX USA. Please give us some more time before that is reflected in the actual performance.

I would like to add: as for Hilco, in the prior quarter, it was immediately after closing, and therefore there was some expenses related to the acquisition, but that expense does not exist in the current quarter any longer. As Yamamoto has explained, Hilco business portfolio, if you look at the whole portfolio, we have business line with stable sales and profit, and also part of the portfolio which is a little bit countercyclical.

In the United States, as you may know, there is a Goldilocks situation—it's not going up or down, it's in the lull. That's the situation in the last couple of quarters for Hilco.

Considering the nature of this business, rather than looking at the performance of each quarter, we should give it a longer-term perspective—6 months, perhaps 12 months. We believe that we need to give that kind of long-term perspective.

Looking at this PE, $268 million, and then again from sales of securities, ¥59.6 billion, this includes things that are not related to PE is my understanding. I don't think these actually belong to Europe, I'm guessing that this relates to other US businesses, but because of the expenses, in the end, you end up with the numbers in the navy and the gray on this page.

Is that the correct understanding?

On gross basis by segment, we have disclosure ¥59.6 billion, majority of this is attributable to the United States. This is just one side of revenue, sales of marketable securities and also dividends and interest paid and received, those elements are also included as well.

Funding side payment cost, for example, will have to be looked at in balance of this. US credit business, NXT Capital, for example, or Signal Peak, and also structured credit trading, with regard to these, the environment is relatively positive, and some of the stronger numbers that you can see include bond and also trading environment.

The environment is not necessarily bad.

I understand, thank you.

Thank you very much. Moving on to the next question, Sakamaki-san, Mizuho Securities.

Yes, this is Sakamaki, Mizuho. I have a question about Europe.

AUM is growing, I can see, but more than that, compared to the Q4, I think there's a huge growth in Q-on-Q. Are there any temporary factors such as performance fee, or do you think this level of a profit is more or less standard?

Yes, this is Yamamoto, I would like to explain. As you said, for Robeco, market appreciation has contributed.

If appreciation does not continue, we expect some deceleration. Somebody else mentioned that our Q2 forecast is conservative.

This is because we don't expect the market to appreciate further. We believe that this quarter was a little bit better than usual.

This is not necessarily entirely one-off, not necessarily a success fee. Including net new money inflow, Robeco gets mandates from the investors, and they have been strengthening their marketing activities, which are producing results.

Yes, Q1 was quite strong, and Q2 and beyond, we don't expect a huge decline because of the first quarter growth. Compared to other asset managers, looking at Robeco on a quarter-to-quarter basis, we see constant new money coming in.

We do not expect a huge deterioration because some portion of this can be sustained or supported by new money coming in. I think that's going to make a big contribution going forward.

That was very informative, thank you very much.

Thank you for the question. The next person is from Nomura Securities, Sasaki-san, please.

I am Sasaki from Nomura Securities. Thank you for the opportunity.

Now with regard to this adjusted profit, especially the outlook, I know that you have been providing various different explanation, but if we were to perhaps view this from the management perspective, would you make a judgment that it is going for the better or the worse?

I know that it's difficult to understand. We think that we'll be able to grow this adjusted profit in the second half as well.

Okay. Also, as much as possible, if you could explain, this Kioxia-related matters, especially in light of dividend, I know that you have excluded from the shareholders return, but inclusive of Kioxia Toshiba's valuation enhancement, the the payout to shareholders, how that how could that happen?

The profit that you'll be generating, do you think that you'll be this will be kind of contributed to the share the shareholders?

As of now, as you have understood, the valuation profit or loss, or even if it was to be a sales a gain on sales, it will be remaining at Toshiba. Therefore, there will be no kind of payment may be made to us on a cash basis.

From Toshiba, as a result of the sales, if there was to be a return, and if we are in receipt of the cash, some part of it will be made use of as a source of payout to our shareholders. Especially if it is a capital gain, we would use part of what we will be receiving for the shareholders return.

This is something which is not under our full control. This is why I'm terribly sorry, but our explanation remains to be pretty ambiguous.

Understood. If this is the case, if you were to sell Toshiba's shares, if you were to sell Toshiba's sales, would it be included in this payout?

Anything that is non-cash, because there's such a fluctuation, even today, it's adjusted, this is the policy.

Thank you very much, that's very clear.

Thank you. UBS Securities, Niwa-san, please ask your question.

Yes, this is Niwa, UBS Securities. I have a question about new investments.

I'm looking at page 10. Probability of achievement for the annual plan, including AerFin, ¥200 billion/quarter, maybe this is in line, but it also looks like it's a slow start.

The market is quite strong, perhaps you are struggling with execution, or you are waiting for the market to change? Can you please give some color to this?

We have a pretty rich pipeline, and as you have said, valuation range is quite high in some of the sectors. Therefore, we will be, of course, continuously active, but we also need to implement financial discipline at the same time.

Rather than hurrying to make the investments and focusing on the amount that we're investing on a quarter-by-quarter basis, we really want to focus on doing something that is effective. We are being selective when we make investment decisions right now.

I don't think it's right to consider that the pipeline is weak.

I see. Thank you.

I would like to add some comments. So ¥300 billion coming in, and for this particular quarter, we are recouping less than investment, but this is according to a plan.

If we do more exits toward the end of the fiscal year, that would be problematic for the stability of performance. Sugiko was sold, and also ORIX Bank closing is second quarter, and we will be reinvesting the proceeds coming from that, which means that within one single year, it looks like the new investments are being delayed.

It just looks like that. For the flow that we have visibility like Osaka IR, time lag is not a problem.

Real estate and aircraft investment and Osaka IR-related investments, and as Yamamoto-san mentioned, we also have PE investment market situation. Because of those, there is a trend or tendency that more of them will happen toward the end of the fiscal year, but this is within our expectation.

So ¥800 billion, well, if we tell everyone that we can spend as much as they want quickly, they would spend everything at once. The investment committee is being very selective.

Under leadership of Takahashi, we have started discussing all the potential investments pretty deeply from the beginning. We have very strong pipeline, rich pipeline, but we need to be clever in buying them at advantageous prices.

We're looking forward to showing you the outcome of these efforts.

Can you give us some color, please? ¥800 billion for this year: domestic versus overseas, how do you think it will finish?

Because of IR, there's more focus on Japan.

Do you have any items that are within scope for the domestic market, and can they give an impact in this fiscal year?

IR Day in London, we provided more a long-term perspective at that meeting in regard to private asset context. For this fiscal year, it's not so much about private asset, but real estate and also PE investments within the existing business.

As a result, investment amount in Japan will have a higher percentage. In IR Day, I think we were talking about a different asset class, so that's expectation over the mid to long term.

I understand it better now. Thank you.

The floor is open for questions. If you have a question, please click the raise hand button, which can be found at the bottom of the screen.

If there are no further questions, we would like to close the Q&A session. We would like to receive closing remarks from Yamada-san.

Thank you very much for joining us today, and we received various questions, including Kioxia's volatility. I understand that this fiscal year visibility is somewhat weaker, but we will look at the changes and we will do our best to update you on a timely basis and stay in communication with all of you.

Thank you very much for your continued support.

That concludes the Q1 earnings call. Thank you very much for staying until the end of this call.