My name is Nakaoka, Head of Finance. Today, I will present an overview of our full-year financial results for the year ending March 2026 and our full-year performance forecast for the year ending March 2027.

First, the summary. Revenue increased 6.7% year-on-year.

Core operating profit decreased 3.6% year-on-year. Operating profit increased 292.5% year-on-year.

This increase in operating profit was mainly due to a rebound from the provision for losses on litigation recorded in the fourth quarter of FY2024. Next, the key factors behind performance.

On the positive side, revenue benefited from higher sales of new products launched in FY2024 and FY2025 and increased sales of existing products, especially those covered by the selective treatment system. On the negative side, fixed costs increased due to staff expansion, mainly in production.

In addition, profit margins on existing products declined due to the drug price revision. Now, our forecast for FY2026.

We expect both revenue and profits to increase. Revenue is forecast to rise 3.3% year-on-year.

Core operating profit is forecast to rise 19.5%. Operating profit is forecast to rise 71.1%.

We continue to expect growth in sales of new products, and operating profit is expected to improve significantly, mainly because we do not expect litigation settlement costs this year. Next, production volume.

In FY2025, production volume including contract manufacturing was 16.6 billion tablets, which was 90.5% of plan. For FY2026, we have set a target of 18.0 billion tablets, an increase of 1.4 billion tablets versus FY2025.

This includes higher production at Trust Pharmatech and the Second Kyushu Plant, as well as improved efficiency as staff proficiency improves. Finally, sales volume.

In FY2025, we sold 17.1 billion tablets, which was 101.8% of plan. For FY2026, we plan to sell 17.6 billion tablets, an increase of 2.8% year-on-year.

We will continue to work to ensure a stable supply. Next, an overview of our financial results.

Revenue increased 6.7% year-on-year to 201.676 billion yen, which is 99.6% of the revised full-year forecast. This was driven by higher sales volumes of new products launched in FY2024 and FY2025, and growth in existing products, including those covered by the selective treatment system.

Now, profitability. Gross profit was 58.793 billion yen, which is 95.6% of the revised forecast and 4.3% higher year-on-year.

This reflects various factors, including the impact of drug price revisions and rising labor costs. Core operating profit was 24.778 billion yen, down 3.6% year-on-year.

Operating profit was 15.894 billion yen, up 292.5% year-on-year. However, it was 76.1% of the revised forecast.

The year-on-year increase mainly reflects the prior year provision for litigation losses. Finally, profit attributable to owners of the parent was 10.438 billion yen, down 12.8% year-on-year and 74.6% of the revised forecast.

This shortfall was partly due to expenses such as impairment losses recorded in the fourth quarter. This slide shows quarterly revenue compared with the previous year.

A key feature of FY2025 was the impact of the selective treatment system, which started in October 2024. As a result, revenue in the first half increased by a little over 10% year-on-year.

From the third quarter onward, as the initial impact eased, revenue increased 1.2% year-on-year in third quarter and 2.2% year-on-year in the fourth quarter. The table on the right shows performance of existing products and products listed in 2025.

New products listed in 2025 had a solid start. Supported by new products, such as dapagliflozin listed in December, revenue reached 3.297 billion yen.

Next, revenue by product listed year. Revenue from new products continued to grow strongly.

Products listed in 2024 generated 6.454 billion yen, up 150% year-on-year. Products listed in 2025 generated 3.297 billion yen, also showing robust growth.

In addition, sales of products listed in earlier years, such as 2017, also increased, partly due to items covered by the selective treatment system. On the other hand, sales of products listed in 2018 declined 13.5%.

This was mainly because sales volumes of seasonal infectious disease treatments, such as oseltamivir, did not increase compared with the previous year. Next, I will explain the waterfall chart for factors affecting operating profit.

Operating profit increased by 6.604 billion yen year-on-year due to higher sales. Negative factors included declining drug prices and increased labor costs.

Valuation and disposal losses had a positive year-on-year impact because losses were significant in the prior year. In contrast, SG&A expenses had a negative impact of 2.538 billion yen, mainly due to costs associated with Huldey launched in September 2025.

Now, the largest factor: other income and expenses. In FY2024, we recorded a provision for litigation losses of approximately 14.2 billion yen related to nalfurafine, which was absent in FY2025.

This positive factor was large enough to cover the litigation settlement cost of 4.0 billion yen in FY2025 related to teriparatide. In addition, the write-down of R&D expenses had a positive year-on-year impact.

As a result, operating profit was 15.894 billion yen, up 292.5% year-on-year. Next, I will explain our earnings forecast for FY2026.

For FY2026, we forecast growth in both revenue and profit across all metrics. Revenue is forecast at 208.4 billion yen, up 3.3% year-on-year.

Core operating profit is forecast at 29.6 billion yen, up 19.5%. Operating profit is forecast at 27.2 billion yen, up 71.1%.

Net profit is forecast at 18.6 billion yen, up 78.2%. We expect sales of new products to remain strong, reaching 6.3 billion yen for the full year.

Profit is expected to improve due to a better product mix, driven by growth in new products and the absence of litigation settlement costs of 4.0 billion yen recorded in the previous year. This slide explains revenue and gross profit.

FY2026 is the final year of the current mid-term management plan. Revenue is projected to increase 3.3% year-on-year.

However, we expect it to remain below the mid-term target of 220 billion yen. As for gross profit, while various factors may affect results, we expect a significant improvement of 11.4% year-on-year.

Next, SG&A and R&D expenses. SG&A is planned at 28.0 billion yen, up 7.5% year-on-year, mainly due to higher personnel costs and productivity measures, such as outsourcing.

R&D expenses are expected to be 10.3 billion yen, down 16.9% year-on-year. However, our policy is to maintain R&D activities at the same level as the previous year.

The year-on-year decrease mainly reflects the prior year recognition of an impairment loss of 1.6 billion yen. Compared with a revised plan of 10.3 billion yen, the plan is effectively flat.

This is the final slide. We are building a systematic framework to expand production and ensure a stable supply.

In December, the new solid dosage form building, Step 2, at the Second Kyushu Plant is scheduled to begin operations. This is expected to increase annual production capacity by 1.5 billion tablets.

Taking into account the operating period within the current fiscal year, our full-year production plan is 18.0 billion tablets. We will continue to make continuous and planned capital investments in line with demand trends.

The following pages contain reference materials. Regarding dividends, based on our dividend policy under the current mid-term plan, we expect an annual dividend of 55 yen for FY2025 and an increase of 1 yen to 56 yen for FY2026.

The materials also include our sustainability initiatives, new business ventures, new products scheduled for listing in June, and various financial indicators. This concludes my presentation on the full-year financial results for the year ending March 2026.

Thank you for your attention.