Casio Computer Stock

Thank you very much for tuning into our earnings briefing despite your busy schedule. I'll take this opportunity to express my deep appreciation for U.S. [ savy ] support and input from multiple perspectives. Now I would like to give you an overview of our full year results for the fiscal year that ended in March 2026. We will also share with you a new 3-year midterm management plan that starts in the fiscal year ending March 2027. First, results for the past fiscal year.

Starting with the consolidated results for Q4 January-March period. Net sales, JPY 68.3 billion, up 3.5% year-on-year; operating profit, JPY 4.9 billion, up 63.4%; OP margin, 7.2%; ordinary profit, JPY 5.4 billion, up 85.8%; profit attributable to owners of parent, JPY 2.8 billion, down 26%; EPS was JPY 12.4.

Here are the Q4 results by segment. The Time business segment reported higher net sales and profit with an OP margin of 13.1%. The Consumer segment saw a lower revenue and higher profit with an OP margin of 3.3%. Note that the businesses that were previously reported under systems are now reported under the Other segment. The previous year's results have been revised accordingly.

Corporate adjustment came to minus JPY 1.6 billion. Now full year results for the just ended fiscal year. Look at the table on the left. Net sales, JPY 276.3 billion, up 5.5% year-on-year. Operating profit, JPY 23.1 billion, up 62.1%. OP margin, 8.4%; ordinary profit, JPY 25.7 billion, up 81.8%. Profit attributable to owners to our parent, JPY 18.2 billion, up 126%. Both sales and profits topped the full year forecast announced in January.

EPS was JPY 80.05. ROE was 8%. The table on the right shows full year results by segment. Timepieces reported higher sales and higher profit with OP margin of 14.7%. Consumer reported largely flat sales and higher profit with an OP margin of 4.2%. Corporate adjustment came to minus JPY 6.2 billion. I will now talk about Q4 results by segment. First, the Timepieces business remained strong with an OP margin of 13.1%. Our G-Shock strategy has proven successful. We are beginning to see signs of recovery. A significant increase in watch orders in Q3 caused shortage of our hot selling models in Q4. We were able to mitigate the problem with increased production.

Next, Q4 results by segment and by region. Overall, net sales rose by 6% year-on-year on local currency basis. Domestic sales were strong, particularly the G-Shock metal line. North America had strong demand for watches, posting good results for both in-store as well as online sales. The expansion of CASIO WATCH lineup in the region helped win new customers. In Europe, CASIO WATCH sales remained steady, led by the U.K., Spain and Italy. Chinese business seems to be improving from its worst time.

In other regions, both G-Shock and CASIO WATCH are showing growth. In the key market of India, both offline and online sales were strong. ASEAN business varied by country. The main drivers were Vietnam and Indonesia. In the trends set in South Korea, CASIO WATCH remained strong, thanks to our social media strategy. Latin America sales were also strong, thanks in part to our brand ambassadors. The percentage of G-Shock was about 42% in Q4. While CASIO WATCH boom continues globally, our strategy for G-Shock are beginning to bear fruit and helping our business.

Product-by-product figures are shown in this slide. In the G-Shock metal, GST-B1000 with easy-to-wear minimal design remained popular worldwide, particularly in Europe. For G-Shock resin, GW-M5610U and GA-2100 led sales driven by a renewed promotion strategy for best-selling iconic entry models. Among new products, GA2100CM was popular. It features a camouflage pattern to suit outdoor fashion.

CASIO WATCH is growing globally as young people continue to embrace retro vintage trend, models such as A159 and MTP-1302 are performing well. In the EdTech business, sales of scientific calculators were largely in line with our plan. The sound business appears to be bottoming out globally, while Japan still faces challenges.

Now I'll move to our new 3-year midterm management plan, which starts in the fiscal year ending March 2027. This chart shows annual performance during the previous medium plan period, which started FY 2023. We spent the first 2 years streamlining our business portfolio, optimizing our workforce structure and reforming our corporate culture. Then in the final year that ended March 2026, we shifted to a growth trajectory. We focused on Timepieces business, boosting its sales, earnings structure and capital efficiency. As a result, both sales and profit exceeded our targets and ROE recovered to the 8% range in the final year.

I'll talk about what we achieved in the previous midterm plan. In the Timepieces business, CASIO WATCH expanded globally and our two core watch brand strategy proved successful. Structural reforms of the systems equipment and other businesses helped establish an agile executive management structure. Our challenge in the new midterm plan is to build a foundation for sustainable growth for G-SHOCK, accelerate expansion into growth markets such as India and Brazil, return the sound business to profitability and make new businesses contribute to our business.

This is how our new midterm plan is positioned. As I said, we focused on the turnaround to growth trajectory in the previous midterm plan. We will aim for maximizing corporate value by 2030 under the new midterm plan. Here is how, the establishment of a foundation of sustainable growth, strengthening of our management base and ROE of over 10%. Next, key business targets for the initial year, the fiscal year ending March 2027 are, net sales, JPY 295 billion; operating profit, JPY 26 billion; OP margin, 8.8%; ordinary income, JPY 26 billion; profit attributable to owners of parent, JPY 18.5 billion; and earnings per share, JPY 82.28.

Goals for the final year of the new midterm plans are: net sales, JPY 315 billion; operating profit, JPY 35 billion; and OP margin, 11.1%. We'll address cost increases due to conflicts in the Middle East and the rising material prices by passing increased cost to customers. Here are key targets by segment for the final year of the new midterm plan ending in March 2029.

In Timepieces business, net sales, JPY 207 billion; operating profit, JPY 32.5 billion; and OP margin, 15.7%. In the Consumer Business and EdTech Education business, Net sales, JPY 68 billion; operating profit, JPY 8.5 billion and OP margin of 12.5%. We project an operating loss in the sound business in the initial year. We'll implement all out profit improvement and generate profit by the final year.

Note that the sales from new businesses such as Moflin will be recorded in the other segment this fiscal year. By the final year of the plan, we aim to make these new businesses a profitable independent business segment. Here is an outline of our midterm management plan. Through innovation in new growth areas and a stronger management foundation, we will improve short-term profitability while establishing foundation for medium-term growth so that we can maximize corporate value as global brand.

Our capital allocation policy calls for utilizing JPY 50 billion of what we define as surplus cash. Of that amount, JPY 30 billion is for strategic investment, JPY 20 billion is for next-generation environmental investments. We will first make strategic investments such as M&A and alliances to drive further growth in our core businesses and expand into new areas with high growth potential. Fund for new generation environmental investments will be spent on building a new Hamura Technical Center and renovation of our headquarters to revitalize our organization to promote co-creation and to sophisticate our decision-making through DX initiatives.

JPY 25 billion for regular capital investment will be made, not exceeding depreciation costs. We are expecting net profit of JPY 60 billion over the next 3 years. The whole amount will be spent on shareholder return to improve capital efficiency. The Board of Directors decided on May 14 that JPY 10 billion from the fund for shareholder return will be used for share buyback. The buyback period will run from May 15 through July 30 with up to 6 billion shares to be purchased.

All purchased shares will be retired on August 31 to eliminate concerns over possible dilution. We will flexibly take this measure considering market conditions and business results. These are our target financial indicators. We aim to enhance corporate value by achieving over 10% ROE and about 9% ROIC in the final year of the new midterm plan. Through the effective use of surplus cash on hand, cash and cash equivalents are expected to be around JPY 100 billion and the net equity ratio will be 60% to 65%. We plan to maintain stable dividend payment at around 5% DOE with a target payout ratio of around 60%.

As I said earlier, since we will allocate the entire net profit to shareholder return, total return ratio will be around 100%. This is our business portfolio for the new midterm plan. We will make targeted investment in Timepieces and Education businesses to make them growth businesses. We will also make strategic investment such as M&A. We will implement fundamental reforms in the unprofitable sound business to rebuild its profit structure. We will also expand the new field of sound creation. We will pursue global expansion of the smart companion Moflin and establish it as an wellness and peripheral growth business.

Next, strategies for each business segment. In the Timepieces business, we aim to achieve higher sales and maximize profits through growth driven by our two core G-Shock and CASIO WATCH brands. As a key initiative to revitalize G-Shock, we will strengthen our entry-level models to reengage younger consumers. We are improving profitability of CASIO WATCH and we will make investment in the brand to drive further expansion. We will also continue to expand into new markets and new domains.

G-Shock and CASIO WATCH, the two core brands for our growth strategy are complementary in terms of product features, user bases and price ranges. CASIO WATCH is drawing women and younger generation customers. In profit structure, G-SHOCK generate high gross profit and high margin, while CASIO WATCH achieves high profitability through a low cost relative to gross profit. They will continue to contribute to business expansion with their respective unique features and customer bases. We will work to reinforce G-SHOCK's global brand appeal. We will launch new products tailored to user segments of 3 main categories: the premium, the middle and the entry lines.

In addition to unified global promotion campaigns, we will enhance content that resonate with younger audience and promote brands' core values. To improve customer loyalty through enhanced CRM strategies, we will explore global rollout of fan community sites and implement content marketing for enhanced user experience. CASIO WATCH will continue to expand its high-end product lineup while also enhancing its affordable price lineup with trendy designs. While women remains the main CASIO WATCH users, we will expand its customer base through investment and marketing communications to Gen Z. We will also expand touch points through new concept stores.

As part of regional strategy, we will accelerate expansion of high-growth potential markets like India, ASEAN and Brazil. In India, we will strengthen local marketing while expanding our sales network through more touch points in some metropolitan and provincial cities. In ASEAN, we will expand business through priority investments in Thailand, Vietnam and the Philippines. Our focus in Brazil is G-SHOCK. We will capture demand for younger consumers by using our brand ambassadors. We will also promote renewed growth and revitalization considering characteristics of key regions such as North America, Europe, Japan and China. Next, EdTech business. Like Timepieces, we will continue to expand these core businesses, market share, profitability and future ICT-related services.

As a key initiative, we will push for replacement of scientific calculators with a new class web. We will also expand our market share in emerging economies. We will increase sales of general purpose calculators by strengthening our product range. In the Educational App business, we will expand the number of schools adopting ClassPad.net and enhance the services delivery a subsidiary since 2024 ahead of digitalization of textbooks in 2030.

We will strengthen product development for the new ClassWiz scientific calculator series, revamping the UI to meet educators' needs and developing models tailored to different regions. In emerging market, we will implement rigorous anti-counterfeit measures. We will enhance education app services to support the ongoing adoption of ICT in education. In March, we released Q.Bank, a teaching tool by livery. We will also boost our adaptive learning initiative through the use of AI technology.

In the Sound business, we are working to rebuild its profit structure. Our initiatives include a shift to online sales, cost reduction by switching to direct sales, streamline of our workforce in low profit areas, higher production efficiency and cost reduction. We will also provide new [indiscernible] experiences through new products and app integration. The aim is to start generating profit as soon as possible. We aim to establish a wellness business using Moflin. We will continue to expand this business through global rollout of Moflin, enhanced product strength and peripheral services. We will leverage our existing assets to expand into new areas. We will strengthen structures for new businesses through reorganization such as placing R&D under the direct control of the present.

In doing so, we will strengthen collaboration and enhance our agility in business. We will strengthen our management foundation by optimizing our organization and fixed cost structure. We will optimize personnel assignments across departments in line with our business strategy and streamline our organization. We will also optimize overseas production sites and promote production outsourcing for higher efficiency. We will boost profitability by reviewing our fixed cost structure. Next, human capital management and the development of next-generation environments through DX. We will strengthen human capital to maximize employee performance and corporate value and drive value creation. Our DX strategy calls for AI and data-driven business transformation, tighter security and stronger resilience by improving operational efficiency. In next-generation environment investment, we are building a new Hamura Technology Center and renovating our headquarters to promote innovation and co-creation.

Next, R&D strategy. In addition to boosting the competitiveness of our existing businesses, we will drive longer-term growth through new businesses and cutting-edge technologies. We will integrate our core technologies with cutting-edge fields such as AI and data utilization to create new value. We will reorganize our R&D organization to report directly to the present. By being selective about research themes, we will accelerate decision-making and development. We have established new targets for material issues in line with our midterm plan. For details, look at our sustainability website. The following slides are supplementary materials. This concludes my presentation. Thank you so much.

Thank you very much for taking the time out of your busy schedules to join us today. We would also like to sincerely thank you for your continued guidance and support.

Let me now present an overview of our third quarter results for the fiscal year ending March 2026. First, the consolidated results for the third quarter. In the third quarter of last year, we were affected by a system outage caused by a ransomware attack. As a result, we lost JPY 13 billion in sales and JPY 4 billion in operating profit. For this reason, third quarter results show a significant year-on-year increase in both sales and profits. Net sales were JPY 75.4 billion, up 28.1% year-on-year. Operating profit was JPY 8.7 billion, an increase of JPY 7.8 billion.

The operating margin was 11.5%. Ordinary profit was JPY 9.5 billion, up JPY 8.3 billion. Net profit was JPY 7.4 billion, up JPY 6.7 billion. Earnings per share was JPY 32.29.

This slide shows third quarter results by segment. The Timepieces segment posted higher sales and higher operating profit with an operating margin of 19.4%. The Consumer segment also recorded higher sales and higher profits with an operating margin of 0.7%. From this fiscal year, businesses previously recorded in system equipment have been reclassified into the other segment.

Figures for the previous fiscal year have also been restated on the same basis. Company-wide adjustments amounted to minus JPY 1.5 billion.

Next are the cumulative results for the first 3 quarters. Net sales were JPY 208 billion, up 6.2% year-on-year. Operating profit was JPY 18.2 billion, up 61.7%. The operating margin was 8.7%. Ordinary profit was JPY 20.3 billion. Net profit was JPY 15.4 billion. Earnings per share was JPY 67.59. Annualized ROE was 9.1%.

Next, our cumulative results by segment for the first 3 quarters. The Timepieces segment achieved higher sales and profits with an operating margin of 15.2%. The Consumer segment also posted higher sales and profits with an operating margin of 4.4%. Company-wide adjustments were minus JPY 4.6 billion.

From here, I will focus on key points in the third quarter results by business. First, the Timepieces business. Performance was very strong and the operating margin reached 19.4%. As mentioned at the previous earnings briefing, new products, including those in new design categories contributed positively. Sales remained strong during the year-end shopping season. Regional sales composition is shown in the pie chart on the right. Our dual brand strategy for G-Shock and Casio Watch has been effective, contributing to expanded brand awareness among new customer segments.

Next, I will explain third quarter performance by region. As the third quarter of the previous fiscal year was affected by the ransomware-related system outage, we have included comparisons not only with the prior year, but also with the third quarter 2 years ago for reference. Overall, on a local currency basis, sales increased 30% year-on-year and 13% versus 2 years ago. China showed sharp declines in both of the past 2 years. Excluding China, sales increased 32% year-on-year and 21% versus 2 years ago.

In Japan, the inbound ratio declined slightly, but domestic demand was strong. G-Shock performed well, driven mainly by new products. In North America, demand for watches was strong. The year-end shopping season, including Black Friday, saw strong demand, both online and offline. We continue to strengthen our direct e-commerce operations and sales are expanding steadily. In Europe, Casio Watch performed strongly overall. Spain and Italy led growth on a country basis. There was also some last-minute demand ahead of January price revisions.

China sales remained sluggish. In other regions, both G-Shock and Casio Watch showed strong growth. In India, part of the Middle East and Africa region, both online and offline sales were strong. In ASEAN, performance varied by country, but Vietnam and Indonesia led growth. Latin America, the Middle East and Africa also showed solid performance.

Next, I will explain results and conditions by product category in the Timepieces business. First, G-Shock accounted for approximately 43% of sales in the third quarter. Casio Watch continued to perform well globally. In this third quarter, new G-Shock products also made a significant contribution during the year-end season. Details by product category are shown on this slide.

Among metal G-Shock models, new products performed well globally. These included GMW-BZ5000, which uses an MIP LCD for superior readability and GST-B1000 featuring easy-to-wear minimal design.

Among plastic G-Shock models, the standard 5600 series saw sales growth among younger customers driven by its retro design. As mentioned at the previous briefing, a new design category, the ring type G-Shock DWN-5600 has attracted a new fan base.

Casio Watch continues to perform well globally. Standard models such as the A159 and new models like the AQ-240 were popular among younger consumers due to their retro and vintage designs. EDIFICE EFR-S108D with a colored dial is popular in Europe and other regions.

In the EdTech business, there was rush demand ahead of price revisions, mainly in Asia. Performance is in line with plan. In the Sound business, the market environment in Europe and the U.S. remains challenging. The pace of market recovery is slow, and we expect it will take time for demand to return.

Next, I will discuss the full year outlook. Based on cumulative results through the third quarter, we have upwardly revised our full year forecast. For the full year, we have now forecast net sales of JPY 274 billion, up JPY 4.0 billion. Operating profit is forecast at JPY 22.0 billion, up JPY 1.0 billion with an operating margin of 8.0%. Ordinary profit is forecast at JPY 24.0 billion, up JPY 3.5 billion. Net profit is forecast at JPY 17.0 billion, up JPY 2.0 billion. Earnings per share are forecast at JPY 74.53.

This slide shows revised full year targets by segment. For the Timepieces segment, sales are forecast at JPY 180.0 billion, up JPY 4.0 billion. Operating profit is forecast at JPY 25.0 billion, up JPY 1.5 billion. The operating margin is 13.9%. For the Other segment, sales are forecast at JPY 8.0 billion, up JPY 1.0 billion. For the Consumer segment, sound business sales are forecast at JPY 22.0 billion, down JPY 1.0 billion. Operating profit is forecast at minus JPY 2.5 billion, a deterioration of JPY 0.5 billion.

From here, I will explain our strategies for each business. While Casio Watch continues to grow globally and expand sales, G-Shock is also showing strong performance, supported by the effect of initiatives implemented to date. In the Timepieces business, sales for both G-Shock and Casio Watch are expanding on our dual bound strategy. For G-Shock, we will implement measures by price range. In the high-price premium line, we will further expand sales with high-priced distribution and event-based initiatives. In the high and medium price range, we will enhance visual quality and develop metal models that represent an authentic evolution of iconic models. In the medium and low price range, we will continue to focus on best-selling models. We will also roll out global marketing to raise the appeal of G-Shock value to younger consumers.

Next, we will strengthen marketing for Casio Watch. First, we will promote higher unit prices. Casio Watch are well supported by customers who value uniqueness through distinctive designs. We will continue to develop products that meet these needs. In marketing, we will highlight the brand history and heritage of Casio Watch. We will also propose styling ideas matched to seasonal themes delivered in an integrated way through our website and social media.

In priority regions such as ASEAN, we will strengthen outreach to fashion-conscious young consumers to increase brand awareness and favorability.

Next, we will look at marketing. We will continue marketing activities tailored to market characteristics and target users. We will deliver a stronger brand message by synchronizing G-Shock with global ambassador XG, which empowers people worldwide with convention-breaking style. We will also promote collaboration projects using 4 iconic G-Shock model characters designed by world-renowned creator, NIGO.

Next, regional marketing. In Europe, we will continue marketing using pan-European ambassador, Central Cee, along with local ambassadors in each country. In Japan, we held a Casio pop-up event in December 2025 at The Stage on the first floor of Isetan Shinjuku. At the venue, we showcased popular products and limited edition models. For other regions, in India, we will continue marketing using 2 major partner ambassadors. We will also expand touch points such as retail stores from major cities to regional cities. In ASEAN, we will strengthen Casio watch promotions targeting young consumers.

Next, I will explain this year's strategy for the Consumer business. In the Education business, we will expand sales of the highly profitable New ClassWiz models. At the same time, we will strengthen measures against counterfeit products and stabilize supply to increase market share. We will also continue to create demand in focused countries and expand the use of calculators. For standard calculators, we will promote sales using the 60th anniversary of Casio calculators as a catalyst.

We have also released new user-friendly products with distinctive designs. For education apps, we will continue to enhance the functions of the comprehensive learning platform, ClassPad.net. We will expand adoption by schools through synergies with services from our group company, Libry.

In the Sound business, we will continue initiatives to raise brand awareness in high value-added categories. We will also create new experiential value using new technologies. We will also continue with structural reforms. The photo shown here features a conversation between well-renowned pianist, Martha Argerich and pianist Hayato Sumino, who serves as our electronic musical instrument ambassador. We have distributed this as video content.

Next is a new business area, the AI pet robot Moflin. Market response has been very strong. It has been well received not only by the initially expected customer base, but also by a wide range of users. As demand has continued to exceed supply, we have been conducting periodic lottery-based sales on our official website since late 2025. A community of Moflin owners has become active mainly on social media.

In November 2025, we held an event for owners to mark the first anniversary of the launch. We plan to continue holding fan events in the future. In response to owner requests, we have also started selling official merchandise. Overseas expansion began in October 2025 in the United States and the United Kingdom.

Next are some highlights. On the left, Casio China received the 2025 Outstanding Corporate Legal Contribution Award in China. Casio China was highly evaluated for its handling of litigation, and this award recognizes those achievements. The automatic mathematical scoring engine, ClassPad Scoring, which automates grading for math exams and e-learning, received the Ministry of Health, Labor and Welfare Award at the 22nd Japan e-Learning Awards.

Finally, the AI pet robot Moflin won the Grand Prize at the sixth TSUTAYA ELECTRICS Plus AWARDS.

Next is our capital allocation policy. We are allocating surplus cash and internally generated cash to growth and strategic investments to drive further growth. Following our investments in Libry and AIQ, we are steadily building a track record in new business growth, including an equity investment in and collaboration with tie-up in the communications technology field.

In addition, in order to improve capital efficiency and enhance shareholder returns, the Board of Directors today resolved to allocate JPY 5 billion of the JPY 25 billion strategic investment budget to share repurchases. The repurchase period will run from January 30 to March 24 with an upper limit of 3.8 million shares. All acquired shares will be canceled on April 30 to eliminate concerns about future share dilution. We will continue to improve capital returns while maintaining a balanced approach to overall capital allocation. The rest of the slides are supplementary materials.

That concludes my presentation. Thank you for listening.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

I'm Shin Takano, President and CEO of Casio. Thank you for taking time out of your busy schedule to view this online briefing. I'd like to take this opportunity to thank you for your support. Now let me first report on the consolidated results of the first half of the fiscal year ending in March 31, 2026. Net sales were JPY 132.7 billion, down 3.1% year-on-year. Operating profit was JPY 9.5 billion, down 8.2% year-on-year. Operating profit margin was 7.2%. Profit attributable to owners of the parent was JPY 8.1 billion. ROE was 7.3%. These are the results by segment.

The Timepieces reported high sales and lower profit than the same period last year. Operating margin was 12.6%. The Consumer segment saw a drop in revenue and profit with an operating profit margin of 6.2%. Businesses that were previously recorded in the System segment have been combined with the Others segment we did the same for the previous year's results. Adjustments were about the same level as the previous year. Next, consolidated results for Q2. Net sales were JPY 70.5 billion, down 1.8% year-on-year. Operating profit was JPY 5.8 billion, down 0.9% year-on-year. Operating profit margin was 8.2%. Profit attributable to owners of the parent was JPY 4.3 billion.

Net sales and operating profit were unchanged from the last year's level, but profit attributable to owners of the parent increased, thanks to structural improvement made last year. Next, the Q2 results by business segment. The Timepieces saw an increase in sales and profit with OP margin of 14.2%. Operating profit as well as OP margin were about the same level as the previous year. The Consumer business saw a drop in sales and profit with OP margin of 6.5%, almost unchanged from the previous year. Adjustments came to negative JPY 1.9 billion. Now I'll give you highlights of Q2 by segment. The Timepieces performed better than the previous year, both in sales and profit.

While the Chinese market was sluggish, sales in other regions remained firm, driving an upswing from the plan. The graph on the right shows Q2 sales by region. This slide shows Q2 sales and overview by region for the Timepieces. The business as a whole saw an increase of 3% from the same period last year on the local currency basis. Even though China posted a significant decline, regions excluding China, saw a 5% increase on the local currency basis. Domestic CASIO WATCH sales expanded, and the ratio of inbound tourist sales increased slightly year-on-year to about 11%. In North America, there were last-minute purchases before price revisions in response to the Trump tariffs. E-commerce remains strong.

In Europe, Spain and Portugal were driving strong sales. Sales promotion by our pan-European ambassador, Central Cee, contributed to strong sales of GA-2100BM. G-SHOCK also did well, driven by strong CASIO WATCH sales. China business continued to struggle due to consumer purchasing behaviors amid economic uncertainties. In other regions, India continued to perform well, both online and offline. We continue to expand G-SHOCK marketing using brand ambassadors. In ASEAN, sales were strong in the Philippines and Vietnam. Hong Kong has shown a sign of recovery from the previous year's sluggish demand. Sales in Latin America and Middle East remained firm.

Next, Timepieces Q2 results and overview by product. The G-SHOCK percentage of the total timepieces sales was 42%. Strong sales of CASIO WATCH continued worldwide, resulting in a decline in the G-SHOCK share in the total sales. A delay in the launch of new G-SHOCK products from Q2 to Q3 or later, further pushed down the percentage of G-SHOCK in the overall timepieces sales. Let's look at individual product groups. In G-SHOCK metal, the GM-2110 series, which features metallic colored octagonal dial were popular globally. MRG-B5000HT was well received for its fusion with Japanese traditional craftsmanship. The model has already been sold out in limited quantity sales despite the JPY 935,000 price tag.

In G-SHOCK resin, the octagonal GA-2100 models were popular globally. Its sales were stable. Sales of GW-M5600, a model featuring Multiband 6 in the 5600 series were strong mainly in Europe and Japan. Sales of CASIO WATCH EDIFICE, our first watch with a mechanical movement were firm worldwide. OCEANUS OCW-S7000RA, which features uniquely lustrous dial were strong in Japan. Sales of CASIO WATCH overall were strong. Next, in the EdTech/Sound business, sales were slightly down from the plan due to some delays in recording sales in Others region. Electronic dictionaries sustained a loss of JPY 400 million. Operating profit margin of scientific and standard calculators were 16.6%.

In the Sound business, domestic sales were on the road for recovery, but a challenging market environment continued outside Japan. Next, the full year forecast for the current fiscal year. On August 1, we reduced operating profit by JPY 3 billion from the plan, factoring in the impact of the U.S. tariffs. We stick with this forecast, meaning no further revision in the full year forecast. Full year forecast by segment is also unchanged from our August forecast. Now I'll talk about strategies by business segment, starting with Timepieces business. We'll boost product development in the G-SHOCK premium line with a focus on the quality of exterior finish.

We'll also co-create new and unique designs by using AI. In the middle priced metal line, we will expand our new trendy product offerings. In the entry line, we will continue to focus on our baseline model or iconic models. We will also promote global marketing aimed at [ reintroducing ] the value of G-SHOCK. Next, CASIO WATCH. It is expanding its fan base while continuing to enjoy strong sales worldwide. We are expanding its sales channel and areas and raising its unit prices. We will further expand the business. Now take a look at new product releases. The unique shaped GA-V01 is introducing new colors and ring-sized models with shock-resistant construction and 20 bar water resistance.

We will be releasing products in new design categories like this. We've launched the general sales of Sadokei, which gained high popularity during crowdfunding last year. In addition, we've released collaboration with models with Evangelion and the movies, Back to the Future and others aiming to expand our fan base. As for G-SHOCK branding, designer NIGO has created original G-SHOCK characters for us. Each character represents different G-SHOCK iconic models. We are going to launch marketing campaigns featuring these characters. We've appointed XG as our G-SHOCK global ambassador. The globally popular hip-hop girls group will help us send out the brand philosophy to the Gen Z.

In area marketing, our pan-European ambassador, Central Cee, along with local ambassadors in each nation will further strengthen G-SHOCK marketing. In India, we will leverage the 2 top ambassadors. We expand touch points from major cities to [ provisional ] cities. We've opened an exclusive store with a cafe in one of Korea's leading shopping districts. We will promote not only watches, but also lifestyle concepts. Next, the Consumer business strategies. In education business, we will expand sales of highly profitable New ClassWiz while stepping up measures against counterfeit products and increase the market share of genuine products. We will create demand in high priority nations to expand the use of electronic calculators.

We will implement sales promotion for standard calculators, taking the opportunity of events marking the 60th anniversary of Casio calculators. In education apps, we will continue to enhance features of comprehensive learning platform, ClassPad.net. In collaboration with our group company, Libry, we will also seek to deliver the product to more schools. In the Sound business, we will continue our efforts to boost brand recognition of high value-added products. We will also leverage advanced technologies to create new experience value. At the same time, we will continue with structural reforms by halving our lineups and pulling out from unprofitable businesses.

Let me talk about digitalized sound source project for Akiko's Piano. In conjunction with Akiko's Piano Support Concert by world-renowned pianists, Martha Argerich, Akane Sakai, Hayato Sumino, we've launched a digital sound archiving project to preserve and pass on the unique tones of atomic-bombed piano of Akiko. Casio CELVIANO was used to digitalize the sound of Akiko's Piano. Next, our initiatives in new domains. First about AI pet robot, Moflin. Moflin has heart like a living creature. It's a pet robot that gives a holder emotional energy. Its emotion develops through daily contacts with people. The product was launched in November 2024 in Japan.

It has been popular among a wider range of people than we had anticipated. In October, we began selling Moflin in the U.S. and U.K. markets. We will continue to pursue further business expansion into mental wellness sector. In the creator economy domain, we've officially released Waves Place, which uses AI to [ general ] sound effects and Streamer Times, a dedicated live streaming scheduler. We entered into a business alliance agreement with TieUps. We jointly launched a streamer training program to create a new live streaming market. Next, I will briefly talk about the appendix. 5 Casio products shown here received FY 2025 Good Design Award or G Mark by Japan Institute of Design Promotion.

We've launched general sales of Sadokei, a watch for use in Sauna. It was sold out within 10 minutes after the limited launch by crowdfunding campaign. It withstands high temperature and high humidity. It has a highly visible time display. With a simple push, you can switch to a 12-minute timer. As part of the VIRTUAL G-SHOCK project, we are collaborating with The Sandbox Web3 gaming metaverse to develop free game that allows players to experience G-SHOCK world view. We also sold limited edition avatars, NFT items and more.

Finally, our company has given the top rating in the 2024 SEA survey conducted by CDP, an international environmental NPO. CDP evaluates corporate efforts to fight climate change in their supply chains. As a result, Casio was recognized as a Supplier Engagement Leader. There are no changes to our capital allocation policy. Also, no changes to the target financial indicators. This is the ForEx impact. This is sales trend for Timepieces business. This is the highlight of the balance sheet.

This concludes my presentation. Thank you so much.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]