Hello, everyone. I am Naka, CFO and CXO.

Thank you very much for joining us today. Today, I will explain our FY2026 first quarter results.

First, please turn to page 2. For the first quarter FY2026, consolidated net profit came to ¥293.8 billion, and core profit to ¥249.5 billion.

Core profit increased by 38% year-on-year, or ¥68.5 billion. Extraordinary gains and losses, on the other hand, declined by ¥58.5 billion year-on-year.

In FY2025, gains were concentrated in the first quarter, including approximately ¥88 billion from the sale of CP Pokphand, in addition to gains from the sales of Provence Oil and Jamukha. In contrast, this fiscal year, such gains were limited to ¥44.5 billion, mainly from the sale of oil interests in Azerbaijan.

Even so, growth in core profit more than offset that decline, resulting in a year-on-year increase of ¥9.8 billion in consolidated net profit. As shown on the slide, both consolidated net profit and core profit reached record highs for the first quarter.

Moreover, these were not only record highs for the first quarter, but also the highest profits ever recorded for any quarter. In the first quarter, core profit was exceptionally strong, up 38% year-on-year, with all segments posting profit growth.

Non-resource core profit came to ¥211.5 billion, a record high for the first quarter, exceeding ¥200 billion for the first time. To strengthen our earnings base, we plan to make investments of approximately ¥1.5 trillion in this fiscal year.

This slide shows the progress toward the new investments of ¥1.2 trillion, excluding approximately ¥300 billion in CAPEX. Investments executed in the first quarter totaled approximately ¥312 billion, together with approximately ¥360 billion in approved projects, including the investment in Aviation Capital Group, ACG, announced today, the total amount already executed or committed has reached approximately ¥670 billion.

This means that progress has already exceeded 50%, and we are steadily building up our investments. As for shareholder returns, we have decided to proceed with the ¥300 billion share buyback announced at the beginning of the fiscal year.

This slide shows FY2026 first quarter business results and the breakdown of the increase in profit. On the far left, core profit for the first quarter FY2025 is shown at ¥181 billion.

Moving to the right, the impact from resource prices was a positive ¥4 billion, while Forex had a positive impact of ¥12 billion, as the average exchange rate during the quarter was approximately ¥15 weaker against the U.S. dollar.

With regard to the impact from the Middle East situation, our initial plan assumed a negative impact of ¥7.5 billion for the full year. There were negative factors, such as higher costs resulting from the rise in energy prices and a slowdown in Middle East-related business.

On the other hand, improved profitability due to higher market prices for basic chemicals also contributed, and as a result, the total impact from the Middle East situation in the first quarter was a positive ¥5 billion. For the turnaround of underperforming businesses in the previous fiscal year, we are planning a full-year contribution of ¥25 billion, and this is progressing as planned.

As for the contribution from new investments, investments executed in FY2025 or in April 2026 contributed ¥11 billion to profit. On the far right, organic growth, excluding such factors as Forex and the impact from the Middle East situation, contributed a profit increase of ¥31.5 billion.

The total of seven businesses listed as major items accounted for more than ¥20 billion of profit growth through organic growth. As a result, the first quarter core profit came to ¥249.5 billion, and consolidated net profit, including extraordinary gains, came to ¥293.8 billion.

At the top of the slide, core profit is shown as having increased by ¥68.5 billion, or 38%, year-on-year. On the left side of the slide, resource prices, Forex, and the impact from the Middle East situation, what we would call market and Forex-related factors, accounted for a total profit increase of ¥21 billion.

On the other hand, on the right side of the slide, the combined ¥47.5 billion increase reflects a solid and sustainable improvement in our earnings base. As shown by the blue box, core profit increased year-on-year in all nine segments, including not only our eight division companies, but also Others, Adjustments & Eliminations, which mainly comprises CITIC.

In addition, six division companies, excluding Metals & Minerals and General Products & Realty, achieved record high core profit. Although this is not shown on the slide, every operating division also posted year-on-year profit growth.

We often describe our approach as consistent management, and I believe these results show that we are successfully putting that approach into practice across all division companies and operating divisions by making our strong areas even stronger, while also steadily lifting the level of the other areas. These two graphs show, on the left, our first quarter core profit for the past five years, and on the right, our quarterly core profit from the first quarter FY2025 through the first quarter FY2026.

We are confident that we have a well-diversified portfolio across business areas and a solid earnings base with low volatility. However, I believe core profit may have appeared somewhat stagnant for a while.

This time, core profit has grown significantly, and we believe these results demonstrate that we have entered a new earning stage. Next, please turn to page 9.

This time, we have partially revised our full-year forecast by segment. We have revised Machinery upward by ¥40 billion, from ¥180 billion to ¥220 billion, and Energy & Chemicals upward by ¥36 billion, from ¥75.5 billion to ¥111.5 billion.

On the other hand, we have revised Others, Adjustments & Eliminations downward by ¥76 billion. Our company-wide forecast remains unchanged at ¥950 billion.

For Machinery, profit contributions from our investment in ACG, which we announced today, will begin from the fourth quarter. In addition, as part of the series of transactions for the acquisition of ACG, we expect to record an extraordinary gain in connection with our subscription to Tokyo Century's bond-type class shares.

Furthermore, reflecting the upward revision at Hitachi Construction Machinery, as well as the solid performance of the other businesses, we have revised the full-year forecast upward by ¥40 billion. The breakdown is approximately plus ¥8 billion in core profit and approximately plus ¥32 billion in extraordinary gains.

For Energy & Chemicals, we realized a gain of ¥34 billion on the sale of [Cieco Azer?] in the first quarter.

In addition, reflecting the exceptionally strong progress in the chemicals business, we have revised the segment upward by ¥36 billion. On the other hand, for Others, Adjustments & Eliminations, we have reduced the portion corresponding to extraordinary gains and other items that were incorporated into this segment at the beginning of the fiscal year.

Next, please turn to page 11. I would like to explain the investment in ACG and our subscription to Tokyo Century's bond-type class shares, both of which we announced today.

We also held a joint briefing from 4:00 PM, but here, I would like to explain this transaction from ITOCHU's perspective. In the leasing business, including aircraft leasing, building up assets is essential for profit growth.

Accordingly, I believe this business is generally seen as one with relatively low capital efficiency. I would like to explain why we made this investment decision under such circumstances.

First, this transaction involves ITOCHU and Tokyo Century each holding a 50% stake in ACG. ITOCHU holds a 30% stake in Tokyo Century, and including the indirect 15% interest held through Tokyo Century, we will be able to hold an effective 65% interest in ACG, directly and indirectly, in an asset-light form through the equity method.

ACG is the world's ninth-largest aircraft leasing company and has the strength of being able to place direct orders for new aircraft with Airbus and Boeing. In order to maintain and strengthen this competitive advantage going forward, further expansion of its business scale is necessary.

As a wholly owned subsidiary of Tokyo Century, ACG was subject to certain constraints in terms of risk tolerance and capital efficiency. Although ACG has funded itself almost entirely on a stand-alone basis, by having both ITOCHU and Tokyo Century account for it under the equity method, we believe those constraints will be eased, enabling ACG to build up its asset base and expand the scale of its business.

The second point concerns our subscription to ¥10 billion in bond-type class shares. As ACG is moving from being a consolidated subsidiary to an equity method affiliate, Tokyo Century reviewed its capital structure and funding arrangements.

As a result, from the standpoint of securing financial soundness by maintaining and enhancing its credit rating level, Tokyo Century decided to issue bond-type class shares, and ITOCHU will subscribe to them. ITOCHU's equity ownership in Tokyo Century will remain unchanged at 30%.

However, through the subscription to the class shares, our ratio based on the number of shares will exceed one-third, which will reduce tax expenses. As a result, an extraordinary gain will be recorded, and going forward, this will generate annual profit contributions of more than ¥5 billion.

Please note that this is the result of our subscribing to the bond-type class shares issued at Tokyo Century's own decision. From our perspective, we view this as, in substance, a package deal together with the investment in ACG.

In addition, ITOCHU will pay Tokyo Century approximately ¥310 billion for the purchase of ACG shares. Tokyo Century will use those funds for investments in and acquisitions of assets related to FMV leases, leases for IT equipment and the like, as well as data centers, storage batteries, overseas mobility, and other areas.

We will also be able to benefit from 30% of the profits generated by these initiatives. Through this series of comprehensive measures, ITOCHU and Tokyo Century will further evolve their collaboration.

As for the profit targets of ¥16 billion for FY2026, ¥30 billion for FY2027, and ¥50 billion in around five years, these figures relate only to the aerospace business. Of the ¥16 billion for FY2026, ¥3 billion will come from ACG profit contributions, reflecting only the fourth quarter.

The FY2027 target includes ¥16 billion, and the five-year target includes over ¥20 billion from ACG. A profit in the over ¥20 billion in five years may appear insufficient to reach an 8% ROI.

However, as stated in the materials, by positioning ACG as the core of the platform, we believe we can accelerate growth in adjacent businesses, and that including those spillover effects, an 8% ROI can be more than adequately achieved in around five years. In addition, the reduction in tax expenses associated with profit contributions from Tokyo Century resulting from our subscription to the bond-type class shares is not included in this return estimate.

Therefore, when considered together as one package, we believe an 8% ROI can be achieved even before five years, and ultimately, we determined that this investment has sufficient potential to achieve an ROI of 10%, and therefore, we decided to proceed with this transaction. That concludes my explanation.

Thank you for your attention.