I am Tokushige.
I will be presenting the financial results for the first quarter of the fiscal year ending March 31, 2025.

In the first quarter of the fiscal year ending March 31, 2025, net sales decreased from the same period of the previous fiscal year; however, we were able to achieve an increase in both ordinary income and net income.
We are on track to achieve the interim performance forecast, with progress rates of 51.5% for net sales, 65.7% for ordinary income, and 65.6% for net income.

This is a summary of the financial results.
Compared to the same period of the previous fiscal year, net sales decreased by 2,405 million yen to 56,607 million yen, ordinary income increased by 470 million yen to 3,614 million yen, and net income attributable to owners of parent increased by 307 million yen to 2,494 million yen.

This graph shows changes in net sales.
Net sales in the Computer Networks (CN) Business and the Private Brand (PB) Business increased by 1,641 million yen and 111 million yen, respectively, while net sales in the distribution area of the Electronic Components (EC) Business decreased by 4,158 million yen.

As for sales and income by segment, in the CN Business, as a result of strong sales of storage-related products and security-related products and growth in maintenance and monitoring services, net sales increased by 23.1% year on year to 8,741 million yen. Segment income increased by 99.0% year on year to 1,153 million yen, and segment income ratio was 13.2%.
In the EC Business, sales decreased, primarily for industrial equipment due to factors including the prolonged stagnation of the Chinese market, despite a higher-than-expected level of yen depreciation and an increase in sales for automotive equipment boosted by the expansion of customer commercial rights. As a result, net sales decreased by 7.8% year on year to 47,865 million yen.
Segment income decreased 4.0% year on year to 2,460 million yen despite a reduction in SG&A expenses, while the segment income ratio improved 0.2 percentage points to 5.1%.

Now, we will move on to the performance of each segment.
Looking at the CN Business by product category, sales of storage-related products for system integrators increased due to large orders. In addition, sales of cloud security products were strong.
Sales of network-related products declined due in part to a decrease in large orders compared to the previous fiscal year.
By field, sales of storage-related products and maintenance and monitoring services for system integrators performed well.

In the EC Business, sales of processors and memory ICs for automotive equipment increased due to the expansion of commercial rights. On the other hand, sales for industrial equipment decreased, affected by lower demand for industrial equipment, such as for semiconductor manufacturing equipment, and the shift by semiconductor manufacturers to direct manufacturer-to-consumer sales.

In the PB Business, the wafer inspection system business acquired in October 2023 contributed to sales.
At Tokyo Electron Device Nagasaki, sales for industrial equipment and electrical equipment were strong, but those for semiconductor manufacturing equipment were weak.
At FAST, sales of inspection systems were steady.
As a result, net sales in the PB Business increased by 3.5% year on year to 3,262 million yen, and the net sales ratio in the EC Business was 6.8%.

Regarding our balance sheet, total assets stood at 161,802 million yen as of June 30, 2024, down 765 million yen from the end of the previous fiscal year. Among assets, notes and accounts receivable decreased due to lower sales compared to the 4th quarter of the previous fiscal year. On the other hand, inventories increased along with the expansion of commercial rights.
Regarding liabilities and net assets, interest-bearing liabilities decreased due to progress in capital recovery.

This is the statement of cash flows.
There was positive operating cash flow of 6,111 million yen, mainly due to a decrease in notes and accounts receivable and contract assets, despite an increase in inventories.
There was negative investment cash flow of 305 million yen, mainly due to the purchase of non-current assets .
There was negative financial cash flow of 5,691 million yen, mainly due to repayment of borrowings and dividend payments.

The amount of orders received was 48,018 million yen.
In the CN Business, the IT investment situation was steady, and the business has received large orders since the third quarter of FY2024.
As for the EC Business, the rebound from long-term orders continues. In addition, the shift to direct manufacturer-to-consumer sales by some semiconductor manufacturers has also had an impact; however, orders remained at a level sufficient to meet the sales forecast for the current fiscal year.

That concludes my explanation. Thank you.