I'd like to thank you for your precious time despite your busy schedule. We have just made an announcement for the FY 2027 the first quarter, as well as the full-year forecast for the FY 2027 March.

This shows the important points I'd like to cover today. As has been announced in our press release on July the 10th, actually, we have changed some segmentations.

As for the numbers for FY 2026 March, actually, these numbers are based upon the newly created segmentations. Also, for your information, the unit in this set of materials is 1 billion yen.

Now allow me to go through the financial results for Q1 FY 2027 March. First, I'd like to begin with these key takeaways.

IT Services Domestic as well as the Aerospace and National Security actually turned out to be quite firm, making great contributions to the overall performance. Starting from May, actually, we incorporated the CSG in the USA.

IT Services and Social Infrastructure, both segmentations actually enjoyed big growth, both in the revenue and the profit. Thanks to these results, as for the actual numbers for the first quarter, revenue year-on-year basis increased 14.5%, 819.8 billion yen.

As for the non-GAAP operating profit year-on-year basis, up 34.7 billion yen, becoming 7- 74.7 billion yen. Based upon the actually latest progress for the first quarter, actually, we revised up our full-year forecast.

In regard to non-GAAP operating profit compared with the past announcement, actually increased 10 billion yen, becoming 430 billion yen. First, allow me to go through the major numbers as well as the segment performance.

The bottom left shows the actual numbers pro forma basis, excluding the M&A impact. Assuming that starting from the last year, CSG incorporated, revenue actually improved 9.8%.

Profit grew 27 billion yen. As for the actuals by segment, allow me to move on to the next pages.

First, IT Services segmentation. In the domestic situations, the BluStellar expanded, and also due to the impacts from the structural reform among the subsidiaries, year-on-year basis, actually the profit actually improved 13.4 billion yen, and the profit actually improved 2.7 points.

As for the overseas, due to the CSG newly integrated, year-on-year basis up 46% in the revenue and 3.6 billion yen improvement in the profit. Next, allow me to explain the domestic IT Services BluStellar and the base business separately.

First, BluStellar. Thanks to our scenario business and actually solutions actually trying to solve the customers' all the issues, particularly in the municipalities and financial services, year-on-year basis, actually it revenue improved 33%, profit improved 7.6 billion yen.

As for base business, we decided to end in a low profit making business and also make a shift toward the BluStellar. Resulted in an actually revenue in a profit, but thanks to the actual structure reforms among the subsidiaries, thanks to the ending of the previous year's unprofitable businesses, year-on-year basis, and actually profit actually improved by 5.7 billion yen.

Next, I'd like to move on to the domestic IT Service booking the status. At high level, the large projects and special demands, and actually ending of the low profit making business, excluding them, in the actual basis, it became positive 3%.

Centering around modernization projects, the demand momentum has been rather strong. By domain, digitalization project for the central government and the telecommunication area were firm.

On the enterprise, the financial services and retail and services actually grew, actually gave us a positive numbers, ABM positive 16%. We were able to continue the good results starting from the last year.

As for the full year, actually first quarter revenue, as well as the end of June the backlog coverage, actual year-on-year basis, it's been increased by 2%. Vis-à-vis our annual forecast, things are going rather firmly and steadily.

Next, I'd like to move on to the Social Infrastructure segmentation. Aerospace and National Security actually continue to be strong.

Year-on-year basis, actually the revenue increased 50%, resulted in a profit of 9.2 billion yen. As for submarine systems, we have received in orders last year that actually made a contributions to the actual numbers.

Actually, we turned out to be in a positive as much as by 52%. Next, I'd like to move on to the financial forecast for FY 2027 March.

First, I will explain the company-wide financial forecast. As explained at the beginning, based on the business progress in the first quarter, we have revised our forecast upward.

Revenue is revised up by 40 billion yen to 3 trillion 540 billion yen. Non-GAAP operating profit is up by 10 billion yen to 430 billion yen.

Please note that the impact of the full-year forecast from the new consolidation of CSG is currently under close review. Therefore, it is not reflected in this forecast.

We plan to disclose a forecast that includes CSG's results at the first half earnings announcement. Next is the financial forecast by segment.

Details regarding both the IT Services and Social Infrastructure segments will be explained on the following pages. Please note that we have maintained allowances which were set at the beginning of the fiscal year against component shortage risks and the macroeconomic uncertainty.

The amounts factored in are 100 billion yen for revenue and 30 billion yen for non-GAAP operating profit. Regarding component shortages, the impact in the first quarter has been minor.

However, the uncertain situation still continues, and we will continue to take measures to minimize the risks. Next is the IT Services segment.

The revisions to the financial forecast in IT Services are entirely implemented in the domestic market. The revised forecast for revenue is up by 20 billion yen to 2 trillion 175 billion yen.

Non-GAAP operating profit is up by 5 billion yen to 329 billion yen. We have factored in a negative revenue impact of 100 billion yen due to municipal standardization in the public sector and the peaking out of the fire and disaster prevention project.

We also factored in 100 billion yen for component shortage risk. Despite these, we plan to improve profitability through the expansion of BluStellar.

As for overseas, we will continuously work on improving profitability. In addition, by curbing unprofitable projects that occurred in the previous fiscal year, we plan for profit of 52 billion yen, which is a profit increase of 9 billion 200 million yen.

Again, please note that at this time, the impact of CSG consolidation is not reflected. Next, we will present FY March 2027 financial forecast for domestic IT Services divided into BluStellar and the base business.

The revisions to the financial forecast are entirely implemented in the base business, leaving BluStellar unchanged. For BluStellar, we will work on further expanding scenarios using AI and improving productivity.

This will contribute to further profit margin improvement for the overall IT Services. This is a breakdown of the first quarter results and full-year financial forecast for BluStellar by segment.

Until now, BluStellar has been entirely disclosed as included within IT Services. However, assuming that its deployment into Social Infrastructure will expand in the future, we will disclose the breakdown by segment starting this fiscal year.

Next is Social Infrastructure. Since the first quarter results exceeded our internal expectations, we have made upward revisions.

For Aerospace and National Security, revenue is revised upward by 20 billion yen and profit by 4 billion yen. For submarine systems, profit is revised upward by 1 billion yen.

In addition to the further expansion of Aerospace and National Security, which has strong demand, submarine systems will turn profitable. As a result, for the full-year forecast, we planned for a profit of 90.9 billion yen, which is an increase of 45.6 billion yen.

Finally, we have topics. The first point is a topic on BluStellar.

In April, we became the first Japanese company to become global partner of Anthropic. We are advancing efforts toward providing this to our customers.

We are jointly developing a secure, task-specific AI solution with excellent safety and reliability. First aiming for utilization in financial industry, we started co-creation with multiple financial institutions in June.

Furthermore, as the first service based on this collaboration, we launched the NEC AI Insight reporting service this month. This service utilizes Claude to fully automate the creation of product planning and sales promotion plans based on consumer purchase data.

Internally, we have rolled out Claude Code to 30,000 NEC Group employees. By utilizing education provided by Anthropic, we aim to build the largest AI-native engineer organization in Japan.

Finally, I will explain the integration of NEC and NEC Solution Innovators scheduled for October 1st. With the rapid advancement of AI, the business model of the IT service business is expected to change significantly.

It will shift from the conventional man-month basis to one centered on end-to-end value provision. This time, through the integration of the two companies, we will bring together 20,000 engineers as well as domain knowledge and implementation capabilities.

We will accelerate the transformation into a value provision model that consistently offers everything from consulting to system integration and operations. This integration is a strategic move to transform the entire NEC Group ahead of changes in the market environment.

We aim to strengthen our competitiveness in the AI-native era and achieve further growth in the IT services business. That concludes my explanation.

Thank you very much.