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 understandings and your interest in our management and business activities.

Now, I'd like to report Toray's business results for the fiscal year ended March 2026 and the business forecast for the fiscal year ending March 2027. Now, I'd like to follow the table of contents shown on page 1.

This is a summary of the business performance and forecast. Core operating income of FY 2025 slightly decreased year-on-year to ¥141.9 billion due to effects from the stagnant market conditions and inventory adjustment despite the promotion of structural reform and strategic pricing.

Core operating income of the fiscal year ending March 2027 is forecasted to increase year-on-year to ¥160 billion given the profit increase driven by business expansion in the growth business fields and promotion of the structural reform while factoring in the risks associated with the situation in the Middle East. In terms of annual dividend, the company plans to pay ¥26 per share of common stock, a ¥6 increase compared with the previous fiscal year.

This dividend includes a ¥3 of commemorative dividend to mark its 100th anniversary as part of the interim dividend. I will explain the details starting from the next page.

I'd like to begin with an overview of business results for the fiscal year ended March 2026. Please turn to page 4.

Revenue for the fiscal year ended March 2026 increased 0.9% to ¥2,585.1 billion compared with the previous fiscal year, and core operating income decreased 0.6% to ¥141.9 billion. Net income increased 2.1% to ¥79.5 billion.

ROIC was 4.7% while ROE was 4.5%. Page 5 is about special items.

Special items for the period worsened by ¥29.4 billion compared with the previous fiscal year to negative ¥44.7 billion. Toray recorded ¥25.1 billion of impairment losses as profitability worsened in the battery separator film business at its 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 March 2026, both assets and liabilities were affected by the increase in translated yen amounts of overseas subsidiaries because of the depreciation of the yen.

Total assets stood at ¥3,477 billion, up ¥184.4 billion from the end of the previous fiscal year, due primarily to increases in trade and other receivables, property, plant, and equipment as well as retirement benefit assets. Total liabilities decreased ¥77.1 billion from the end of the previous fiscal year to ¥1,549.1 billion owing mainly to decreases in borrowings.

Total equity increased by ¥107.3 billion compared with the end of the previous fiscal year to ¥1,927.8 billion, mainly owing to an increase in other components of equity despite a decline due to the purchase of treasury shares. Owner's equity was ¥1,800.1 billion, interest-bearing liabilities was ¥905.6 billion, and the D/E ratio was 0.5.

Free cash flow was positive at ¥144.8 billion. The page 7 shows the factor analysis of ¥0.8 billion decrease in core operating income for the fiscal year ended March 2026 on a 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 battery separator film and a lack of temporary factors including reversal of allowance that increased profit in the previous fiscal year.

In the Carbon Fiber Composite Materials segment, profit decreased due mainly to the impact of demand correction in the industrial applications including businesses that fall under structural reform and down in project. As for the net change in price, strategic pricing has proceeded steadily.

Core operating income decreased 0.6% year-on-year, and core operating income margin fell 0.1 points. Using page 8 and after, I'd like to explain the results of each segment.

First, Fibers & Textiles. Revenue of this segment exceeded ¥1 trillion for two consecutive fiscal years.

Revenue increased 4% to ¥1,051.1 billion compared with the previous fiscal year, and core operating income rose 6% to ¥68 billion. The apparel applications were strong overall despite a stagnation in the European market and continued impact of the intensified competition with overseas products.

In the industrial applications, amid a sense of stagnation in the markets including the automotive applications, the group strived to reduce costs. Page 9 is the Performance Chemicals segment.

Revenue decreased 5.3% to ¥894.4 billion compared with the previous fiscal year. Core operating income decreased 6.2% to ¥56.3 billion.

In the resins and chemicals businesses, the resins business stagnated due to the impact of the slowdown in the automotive applications while the chemicals business was also affected by the worsening market conditions. In the films business, demand for the electronic component-related applications and the automotive capacitor applications grew while sales of battery separator film stagnated.

In the electronic and information materials business, sales of new products for the power inductor applications expanded while OLED-related materials and circuit materials were affected by the slow demand for display panels and intensified competition in China. Page 10 is the Carbon Fiber Composite Materials segment.

Revenue was almost unchanged year-on-year, ¥300.1 billion, and core operating income was ¥17.6 billion, a 21.7% decrease from the previous fiscal year. In the aerospace applications, sales for major customer have steadily recovered accompanying the alleviation of inventory adjustment in supply chain.

In the sports applications, sales of the high-end products for outdoor leisure was steady. However, inventory adjustment of the general-purpose products continued.

In the industrial applications, the pressure vessel applications entered an adjustment phase, and recovery of the wind turbine blade applications were also delayed. Page 11, in the Environment & Engineering segment, revenue increased 12.8% to ¥266.9 billion compared with the previous fiscal year, and core operating income increased 11.2% to ¥28.8 billion.

In the water treatment business, reverse osmosis or RO membranes for the Middle East and plant construction project in Japan remained solid. However, the business was affected by the stagnant market conditions in China and intensified competitions.

As for subsidiaries in Japan, sales of engineering and construction subsidiaries remained strong. Page 12 is the Life Science segment.

Revenue decreased 1.4% to ¥52.4 billion compared with the previous fiscal year, and core operating income increased by ¥0.7 billion to negative ¥0.1 billion. In the pharmaceutical business, overseas sales grew mainly in China, but sales in Japan were affected by the penetration of generic versions.

In the medical devices business, sales of hemodialysis dialyzers and catheters stagnated, but efforts were made to shift towards high-value-added products and to reduce costs. Page 13 shows the business results of major subsidiaries and regions.

At Toray International, sales were strong mainly in the Fibers & Textiles, but affected by the cost increase. At our subsidiaries in Southeast Asia, in the Fibers & 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 & Textiles business, the apparel applications were 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, Fibers & Textiles business saw an increase in core operating income due to the effect of structural reform such as scaling down of unprofitable applications.

In the Performance Chemicals business, sales of battery separator film were stagnant. Next, I'd like to explain the consolidated business forecast for the fiscal year ending March 2027.

Please turn to page 15. The global economy is expected to continue with a gradual recovery phase.

The Japanese economy is also expected to continue with its gradual recovery. However, downside risks remain, including escalating tensions in the Middle East and the resulting rising raw material prices and supply constraints, as well as prolonged impacts that may weigh on the global economy.

Further, the current economic conditions will be affected by the direction of the US trade and foreign policies, together with responses from other countries, trends in AI-related demand, and slowdown in the Chinese economy. These factors may significantly affect supply chains and trade structures in the medium- to long-term.

For the fiscal year ending March 2027, Toray expects revenue of ¥2,830 billion, core operating income of ¥160 billion, and a profit attributable to owners of parent of ¥90 billion, taking into consideration anticipated business expansion in growth fields and profit increase through promotion of structural reforms, while factoring in the risks associated with the situation in the Middle East. Page 16 shows our semiannual forecast by segment.

Revenue and core operating income are expected to increase across all segments, driven by capturing demand expansion in the Fibers & Textiles, Performance Chemicals, and Carbon Fiber Composite Materials segments, as well as the effects of strategic pricing and profitability improvement projects. Page 17 shows a comparison of core operating income between the actual results for the fiscal year ended March 2026 and forecast for the fiscal year ending March 2027, with breakdowns into segments.

Page 18 explains the trends in capital expenditures, depreciation and amortization, and R&D expenditures. Capital expenditures for the fiscal year ending March 2027 are expected to be ¥160 billion, depreciation and amortization ¥140 billion, and R&D expenditures ¥86 billion.

Page 19 shows shareholders return. Toray has maintained a basic policy of stable continuous dividends while providing shareholders return in line with business performance growth.

Under Ignition 2028, the company will maintain this approach as its foundation while pursuing progressive dividends driven by profit growth, as well as flexible share buybacks, taking into account the company's financial position and capital structure. In terms of interim dividend in the fiscal year ending March 2027, Toray expects to pay ¥13 per share of common stock.

This includes a ¥3 of 100th anniversary commemorative dividend. The company plans ¥13 of year-end dividend.

Consequently, the annual dividend per share for the fiscal year will be ¥26, an increase of ¥6 from the previous fiscal year. This concludes my presentation.

Thank you very much.