This is Yamanishi speaking. First, from myself, consolidated financial results for the first quarter.

The key highlights of the first quarter results for the fiscal year ending March 2027: in the electronics market, which has a significant impact on our business, production of ICT-related products, including smartphones, declined year on year due to tight memory supply and demand and higher memory prices. Meanwhile, demand for nearline HDDs for AI data centers remained robust.

Capital investment demand in the industrial equipment market also remained solid. In the automotive market, demand remained resilient, supported by the continued shift toward electrification and autonomous driving.

Against this backdrop, although lower production of ICT-related products had a negative impact, strong sales of newly launched smartphone models, together with solid demand related to AI data centers, drove year-on-year growth in both sales and operating profit across all business segments. Overall, net sales increased by 38.3%, while operating profit rose 53%.

Both net sales and operating profit reached record highs for the first quarter. Next, the first quarter financial results in detail.

Foreign exchange movements, primarily against the U.S. dollar, increased net sales by around 72.5 billion and operating profit by around 11.3 billion.

Net sales totaled 741 billion, up 205.3 billion or 38.3% from the same period last year. Operating profit came to 86.3 billion, an increase of 29.9 billion, increase of 53%.

Profit before tax was 94.5 billion, up 36.9 billion or 64% from a year earlier. Profit attributable to owners of the parent reached 80.6 billion, up by 94.4%.

We achieved record highs in net sales at every level of profit. Quarterly EPS came to 42.45.

Our operating profit sensitivity exchange rate is estimated at around 2 billion annually for every 1 yen movement against the U.S. dollar, and approximately 300 million against the euro.

Next, business performance by segment. Passive components: sales increased across all three key markets: automotive, ICT, and industrial equipment.

Sales for AI data center applications increased significantly. Net sales reached 176.8 billion, up 28% year on year.

Operating profit totaled 17.4 billion, approximately 2.7 times. Ceramic capacitors achieved higher sales and profits driven by strong demand from AI data centers.

Profitability also improved. Aluminum film capacitors benefited from higher sales to both the automotive market and AI data centers.

Inductive devices posted higher sales and profits supported by increased automotive demand. Although sales of high-frequency components declined in the automotive and ICT markets, however, profitability improved.

Piezoelectric materials and circuit protection devices recorded higher sales and profits thanks to increased demand from the industrial equipment and automotive markets. Next, sensor application products: sales volumes increased in both the ICT and industrial equipment markets.

Net sales rose to 61.9 billion, an increase of 33.3% year on year. Operating profit reached 7.8 billion, nearly three times the level of the previous year.

Temperature and pressure sensors posted higher sales and profits supported by stronger demand from the automotive and industrial equipment markets. Magnetic sensors benefited from increased smartphone demand for TMR sensors, as well as higher industrial equipment demand for Hall sensors.

As a result, the magnetic sensor business achieved higher sales and profits. MEMS sensors benefited from higher sales of motion sensors for both ICT and industrial equipment applications.

The MEMS sensor business achieved higher sales and returned to profitability from a loss a year earlier. This made a significant contribution to sensor profitability.

Next, magnetic application products: net sales reached 81.6 billion, up 49.6%. Operating profit increased to 9.6 billion yen, up 51.8%.

Demand in the HDD market remained strong, supported by expanding AI data center demand. HDD head shipment volume increased by 36%.

HDD suspension shipment volume increased by 31%. As a result, both sales and profit increased substantially.

Magnet sales increased thanks to stronger demand from the automotive market. However, profits declined because the previous year included approximately 1 billion in one-time gain.

Ongoing quality improvements and cost reductions significantly narrowed the underlying loss. Energy application products: net sales reached 405.8 billion, an increase of 42.1%.

Operating profit came to 69.4 billion, up 25.3%. Shipment volumes of rechargeable batteries declined as production of ICT-related products decreased.

However, for small batteries, we implemented price adjustments reflecting changes in material costs. The expansion of our battery pack business also contributed to higher sales and profits.

Sales of mid-sized batteries for industrial equipment also increased. As a result, secondary rechargeable battery business as a whole achieved higher sales and profits.

Power supplies for industrial equipment benefited from a gradual recovery in demand, particularly from semiconductors. Consequently, both sales and profits increased.

During the first quarter, the transfer of newly developed business within our EV power supply business has completed. Accordingly, a one-time gain on the sales of approximately 2.6 billion was recorded.

Next, the quarter-on-quarter changes by business segment from the fourth quarter to the first quarter. The passive components: net sales increased by 21.8 billion or 14.1% from the previous quarter.

Operating profit rose by 6 billion, representing a 52.5% increase. Ceramic capacitors recorded higher sales driven by both automotive applications and AI data centers.

We are able to have a higher sales and profit. Sales of aluminum film capacitors also increased for both AI data centers and automotive applications.

Inductors posted higher sales and profits supported by increased demand from both automotive and ICT markets. High-frequency components achieved a higher sales and profits due to increased demand from the ICT market.

Piezoelectric and circuit protection devices also recorded higher sales and profits driven by stronger demand from automotive, industrial equipment markets. Turning to sensor application products, net sales increased by 5 billion or 8.7% from the previous quarter.

Operating profit increased by 6.3 billion, more than fivefold from the previous quarter. Temperature and pressure sensors delivered higher sales and profits thanks to stronger demand from the automotive, industrial equipment markets.

Hall sensors sales remained flat, while TMR sensor sales increased due to seasonal demand in the ICT market. MEMS motion sensors also achieved higher sales and profits on the back of increased industrial equipment.

As for profits in the fourth quarter, we had to appropriate 1.2 billion yen for structural reform expenses, but if we excluded that, the magnetic sensor overall posted increased profits. In MEMS sensors, there were increased sales of motion sensors for industrial equipment.

Thus, overall, there were uptick both in sales and profits. Next, the magnetic application products segment: compared to the fourth quarter, sales were up 5.5 billion yen, that's a 7.3% increase.

Operating profit ended with 2 billion yen, or 27% increase. Sales volume of HDD heads rose by 12%.

Suspension sales volume was up 8%. Overall, the HDD heads and suspensions resulted in higher sales and profit.

Although revenue for magnets declined, we are reducing losses through cost improvements. Finally, energy applications product segment had sales increased by 17.6% or 60.7 billion from the fourth quarter, and operating profit increased by 27.8 billion yen, or 66.8%.

Sales volume of small batteries for ICT market rose approximately 4%, and the small battery pack products and medium-sized batteries also had significant increase in sales and profits. Power supplies for industrial equipment saw recovery in demand, resulting in increased sales and profit.

As explained earlier, in the EV power supply business, we recorded 2.6 billion yen of gains from new business transfer. The difference from 7 billion appropriated in the fourth quarter for structural reform expenditure and the 2.6 billion gains from the business transfer amounts to 9.6 billion yen increase in profits and is included in the profit for the energy applications segment.

Next, regarding the analysis of the 29.9 billion yen increase in operating income. Profit increased by 35.1 billion yen due to higher sales volume across all segments.

Although price fluctuations had an impact of 6.3 billion yen, this was largely offset by 4.8 billion yen in cost reductions from rationalization efforts and 900 million in benefits from structural reforms implemented in the previous fiscal year. Selling, general and administrative expenses increased by 17.4 billion yen due to higher R&D expenses, primarily in the rechargeable battery business, where development of new technologies and products is accelerating, and in the HDD head business, which is advancing the development of next-generation technologies such as HAMR.

Combined with a 1.6 billion yen increase from non-recurring gains and 11.3 billion yen positive impact from weaker yen, this resulted in an overall profit increase of 29.9 billion yen. Next, I'll explain the cash flow situation.

Operating cash flow for the first quarter was a negative 19.2 billion yen. In addition to an increase in working capital due to sales growth, a decrease in withholding tax payments served as a temporary cash outflow.

Regarding investing cash flows, capital expenditures remained largely in line with initial projections. Additionally, in the rechargeable battery segment, cash outflows related to the acquisition of Lynergy were included, resulting in total of 60.2 billion yen.

As a result, free cash flow was a negative 79.4 billion yen. In the first quarter, free cash flow was significantly negative due to increased capital expenditures associated with business expansions such as acquisitions and the increase in working capital, as well as temporary cash outflows.

However, the impact on the capital allocation projected for this medium-term management plan period is minimal. Next, I'll explain our full-year earnings forecast for the fiscal year ending March 2027.

First, I'll explain the projected changes in sales by segment from the first quarter to the second quarter. The exchange rate assumption for the second quarter is 151 to the dollar, which is unchanged from the assumption announced at the beginning of the fiscal year.

However, I'll explain the changes excluding the impact of exchange rates here. First, regarding passive components: growth in inductive devices for automotive markets as well as increased sales of various products for AI servers, such as aluminum electrolytic capacitors, will drive a projected overall growth of 2% to 5%.

With sensor application products, due to the seasonality in the ICT market, we expect growth in magnetic sensors and MEMS microphones that will lead to overall growth of 3% to 6%. In magnetic application products, thanks to increases in sales volume designated for captive and 10% uptick in volume for heads, around 6% of uptick in suspension assemblies, the whole segment is expected to have 6% to 8% growth.

Lastly, in energy application products, taking seasonality into account, we expect smartphone production volumes to peak in the second quarter of this fiscal year, with quarter-over-quarter increase of approximately 5%. We anticipate around 10% increase in sales volume of small batteries, and the medium-sized batteries for industrial equipment are expected to grow.

Thus, the overall increase is projected at around 9% to 12%. Next, the outlook for full-year consolidated results for the fiscal year ending March 2027.

In the first quarter, in addition to strong sales to AI data centers, while production of ICT-related products declined year over year, the launch of new products such as smartphones helped, our performance significantly exceeded the levels projected at the beginning of the fiscal year. We expect sales in all segments to exceed the levels projected at the start of the fiscal year in the second quarter as well, and we anticipate that company-wide performance will continue to trend favorably.

However, we recognize the need to carefully monitor future global developments, changes in demand trends, and exchange rates. Therefore, we have maintained the full-year earnings forecast for the fiscal year ending March 2027 at the levels announced at the beginning of the fiscal year.

Finally, we have two announcements. We published the TDK United Report 2026.

The English version is scheduled for release on August 7th. Focusing on the theme of synergy with TDK United and centered on materiality, this report details our initiatives aimed at realizing our long-term vision and enhancing corporate value.

It is available on the TDK website, please take a look. One more thing, we will be holding Investor Day on September 1st.

Team members from TDK United will present on TDK's non-financial capital: human capital and software technology. We plan to live stream the event as well.

This concludes my presentation. Thank you.