Hello everyone, I am Uruma of Mitsubishi Electric, and thank you very much for joining our financial results briefing today. I'll begin by outlining the key points of our financial results and progress on major initiatives for fiscal year 2026, followed by a detailed presentation from our CFO, Fujimoto.

Please do refer to slide 3. I will cover the key points of this earnings report starting with the results for fiscal year 2026.

The group's revenue increased by 373 billion yen year-on-year to 5 trillion 894.7 billion yen, driven by volume expansions in the Infrastructure and Life business areas and Factory Automation Systems business, as well as price improvements in the Industry and Mobility and Life business areas. Both revenue and operating profit reached record highs.

Operating profit on a real basis excluding the impact of the Next Stage support program to optimize personnel structure increased by 146.6 billion yen year-on-year to 538.4 billion yen. This was driven not only by higher revenue, but also by the results of profitability and efficiency improvement initiatives in each business segment.

All subsegments excluding the air conditioning and home appliance businesses outperformed the previous year, and the operating profit margin reached a record high of 9.1%. Free cash flow resulted in an inflow of 231.5 billion yen.

In fiscal year 2026, we executed growth investments, including the acquisition of Nozomi Networks to promote the Serendie-related business and the OT security business, as well as making an elevator company in the Middle East a subsidiary. We also worked to improve cash flow by enhancing profitability and selling assets.

We will further accelerate these initiatives in fiscal year 2027. For the full-year earnings forecast for fiscal year 2027, we expect to reach new record highs for both revenue, projected at 6.2 trillion yen, and adjusted operating profit at 590 billion yen.

We have adopted the new adjusted operating profit indicator to reflect actual performance starting this fiscal year. Our CFO, Fujimoto, will explain this adjusted operating profit in more detail later.

The impact of the Middle East situation has been factored into our earnings forecast based on certain assumptions. Next, I will briefly outline progress on key initiatives for fiscal year 2026.

In our previous medium-term management plan, which runs through fiscal year 2026, we focused on transforming our business portfolio, optimizing operational structure, and improving capital efficiency. Regarding the business portfolio transformation, while we are currently discussing the restructuring of the power module business, we also began exploring a strategic alliance with Hon Hai in the automotive equipment business, as announced on April 24th.

This will expand the scope of discussions with Hon Hai, which have continued since last year, to include the automotive equipment business as well. We will explore joint operations, including accepting a 50% equity investment in Mitsubishi Electric Mobility, the group company in charge of the automotive equipment business.

Through this strategic alliance, we will contribute to providing high-quality, Japan-originated EV platforms. In regard to optimizing our operational structure, we are restructuring affiliated companies, starting with the reorganization of three affiliates in North America, and plan to complete the restructuring of approximately half of the companies targeted for reduction by the end of fiscal year 2026.

This aims to eliminate functional overlaps within the group to accelerate decision-making and improve operational efficiency. Finally, regarding our capital policy, we repurchased 100 billion yen's worth of treasury stock in fiscal year 2026, and going forward, we will continue to focus on growth investments, advancing our business portfolio strategy, and strengthening our management structure, while flexibly considering treasury stock repurchases to further improve our ROE.

The details of the new medium-term management strategy starting in fiscal year 2027 will be shared at our IR Day at the end of May. We ask for your continued support and encouragement as we take on the challenge of driving further growth for the group.

I'll now hand over to CFO Fujimoto to cover the financial results in more detail.

This is Fujimoto. Now, let me explain the details of the financial results based on the handout materials.

Please refer to slide 5. The group's revenue for fiscal year 2026 reached 5 trillion 894.7 billion yen, an increase of 373 billion yen year-on-year, representing 107% of the previous year, driven by increased demand in the Infrastructure and Life business areas and the FA Systems segment.

Operating profit on a real basis excluding the impact of Next Stage increased by 146.6 billion yen year-on-year to 538.4 billion yen, that's 137% against the previous year, while the operating margin improved 2 percentage points year-on-year to 9.1%. In addition to record-high revenue and operating profit mentioned earlier by Uruma, profit before income tax and net profit attributable to owners of the parent company also topped the record.

Please refer to page 6. The year-over-year changes in revenue and operating profit are shown in a waterfall chart.

While foreign exchange fluctuations boosted revenue by 46 billion yen, operating profit was largely unaffected due to the strength of the Thai baht. Excluding the forex impact, revenue growth mostly from increased volume in the Infrastructure and Life BAs and the FA Systems segment, as well as improved profitability from price and cost improvements in the Industry and Mobility and Life business areas and the mitigation of the impact of U.S.

tariffs, resulted in an year-on-year growth in operating profit, excluding the impact of the Next Stage initiative. If you could move now to slide 7, I will now explain the consolidated statement of financial position.

Total assets increased by 981.8 billion yen from the end of the previous fiscal year to 7 trillion 357.5 billion yen, due to an increase in prepaid pension costs and an increase in trade receivables resulting from business volume expansion. Now moving on to cash flow.

Operating cash flow resulted in an increased inflow of 120 billion yen year-on-year to an inflow of 575.9 billion yen, driven by factors such as an increase in net profit. Cash flow from investment activities resulted in an outflow of 344.4 billion yen, up 152.6 billion yen from the previous year, primarily due to increased expenditures such as the acquisition of subsidiaries.

As a result, free cash flow decreased by 32.5 billion yen year-on-year to an inflow of 231.5 billion yen. Please refer to slide 8.

Now I will explain the situation by segment. Here we show the year-over-year changes in revenue and operating profit for FY26 in a waterfall chart by segment.

All segments increased in both revenue and operating profit from the prior year. Please refer to slide 9.

I'll start with the Infrastructure segment. The whole segment and all subsegments grew in both revenue and profit year-over-year, with revenue, operating profit, and operating profit margin reaching record highs.

In Public Utility Systems, in addition to the strong performance in the UPS business for overseas data centers, demand remained firm, centered on domestic transport and public works projects, and revenue exceeded the prior year's level. Operating profit was higher year-over-year, driven by highly profitable projects in the transport and the growth in the UPS business.

In the Energy Systems, demand remained strong against the backdrop of increased electricity demand associated with the expansion of data centers, particularly in North America. Both revenue and operating profit grew year-over-year, driven by growth in domestic and overseas power distribution business and the efforts to improve profitability at the time of order acceptance.

In Defense and Space Systems, orders trended high, partly due to large orders such as the next-generation defense satellite communication system. Operating profit was also higher year-over-year, driven by the higher revenue from expanded production capacity in the defense systems business and improved profitability due to higher proportion of orders based on revised contract terms.

Please refer to slide 10. Industry and Mobility.

In FA Systems, demand for smartphones and machine tools in China, as well as continued growth in capex for AI-related semiconductors and servers in Japan, China, and others, led to higher order intake and revenue year-over-year. Operating profit also grew year-over-year, driven by higher revenue and measures such as price improvements.

In Automotive Equipment, although revenue was lower due to decline in revenue by Japanese car manufacturers in China and a decrease in car multimedia sales in North America, operating profit was higher year-over-year, thanks to price improvements, cost reductions from the consolidation of overseas locations, and lower production costs. Please refer to slide 11.

This is Life division. In Building Systems, driven primarily by an increase in domestic refurbishment projects, orders, revenue, and operating profit all grew year-over-year.

In Air Conditioning Systems and Home Products, demand remained firm in Europe, Japan, and North America, and revenue exceeded the level of the prior year. Although operating profit improved thanks to higher sales volume, it was still lower than the prior year due to the investment in sales personnel for the applied air conditioning business and R&D costs, as well as lower profitability in ASEAN and China.

Please refer to slide 12. In Digital Innovation, demand remained robust, and orders, revenue, and operating profit all grew year-over-year.

In Semiconductor & Device, whilst demand remained stagnant in key markets for power semiconductors, such as the automotive and industrial, demand for telecom optical devices remained robust. Although revenue was on par with the prior year, operating profit was higher due to changes in the sales mix.

Please refer to slide 13. Revenue by location of our customers.

Overseas revenue was 106% of the prior year's level, driven by growth in the Energy Systems in North America and the FA Systems in Asia, as well as an increase in the Air Conditioning Systems and Home Products in Europe. Domestic revenue was 108% of the previous year's level, driven by growth centered on the Public Utility Systems business and the Defense and Space Systems.

Please refer to slide 15. I will now explain the full-year forecast for FY27.

From this financial year onwards, we will use adjusted OP as our management performance indicator of our explanations. FY26, adjusted OP is an OP indicator that excludes other gains and losses on the income statement, such as impairment of fixed assets and gains and losses on the sale of assets and businesses, and has been introduced to clearly indicate our sustained earning capability.

For FY27, we forecast revenue of 6.2 trillion yen, adjusted operating profit of 590 billion yen, and adjusted OPM of 9.5%. The exchange rate assumptions are 150 yen to the U.S.

dollar, 175 yen to the euro, and 21.5 yen to the Chinese yuan. We expect revenue to grow, driven primarily by the Defense Systems, Factory Automation Systems, and Life.

We also expect operating profit to increase as growth in sales volume, price improvements, and the Next Stage initiatives will more than offset the impact of rising material costs. We aim to achieve record-breaking results for this fiscal year by further improving operations whilst working to complete our business restructuring and implementing growth investments.

Please refer to slide 17. I will now explain the key points of the earnings outlook, the forecast by subsegment compared to the prior year.

Public Utility Systems will see profit decline despite revenue increase. Data center-related business will grow, but one-off revenue from the prior year will be absent.

In Defense and Space Systems, revenue and profit are expected to increase due to the expansion of our defense systems business. In FA Systems, we anticipate increased revenue and profit due to recovery in market share in Japan and China, as well as growth driven by continued demand by AI-related products, including semiconductors.

In Air Conditioning and Home Appliances, we expect both revenue and profit to increase due to business expansion driven by continued strong demand in Japan, Europe, and the United States, and improved profitability resulting from the introduction of low-cost models in ASEAN. In Semiconductor & Devices, whilst the telecom optical device business is expanding, profit is expected to decline despite revenue growth due to factors such as higher depreciation expenses.

That concludes our presentation.