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I am Miyata. First of all, I would like to express our sincere gratitude to our shareholders and investors for your continued support and valuable advice regarding the business activities of the ENEOS Group. I will begin my presentation according to the materials.

Before turning to the progress of our medium-term management plan and financial results, I would first like to address the matter we disclosed last month regarding suspected violations of the Antimonopoly Act by our group company. As a group, we have been continuously strengthening our governance and compliance framework. Against this backdrop, we take extremely seriously the fact that this incident has led to a criminal complaint and indictment involving one of our group companies. ENEOS Holdings is committed to thoroughly preventing any recurrence. In line with the restructuring of our group company structures outlined in our medium-term management plan, we will accelerate and rigorously implement measures already underway, including reducing the number of group companies and strengthening internal audit functions.

Please turn to Page 2. I would like to begin with our response to the current situation in the Middle East. With regard to crude oil procurement, we are diversifying our sourcing, including increasing volumes from the United States. At the same time, in close coordination with the Japanese Government, we are working to secure crude oil loaded outside the Persian Gulf, thereby avoiding transit through the Strait of Hormuz. Specifically, as reported in the media, we procured cargoes from Azerbaijan on May 12. In addition, for Middle Eastern crude, certain shipping companies are willing to load cargoes in areas such as the Gulf of Oman and the Red Sea. We plan to conduct ship-to-ship transfers outside the Gulf with our group vessels and then transport the cargo to Japan. Preparations are currently underway for early execution.

Furthermore, as a first initiative for our company, in addition to utilizing third-party vessels, we have begun deploying our own VLCCs to the United States. In this way, we are taking a multifaceted approach on the logistics front as well. As Japan's leading energy supplier, we remain fully committed to ensuring a stable energy supply. We will continue to meet domestic demand for Petroleum Products to the fullest extent possible through measures such as the utilization of national petroleum reserves and flexible product imports.

Please turn to Page 3. Let me now highlight today's key points. Firstly, from the perspective of portfolio restructuring, in line with our midterm plan to expand Overseas Petroleum business, we have decided to acquire Petroleum Refining and Sales businesses in Southeast Asia and Australia from Chevron. In addition, we have decided to sell additional shares of JX Advanced Metals as part of portfolio optimization. Secondly, under our initiative to build a more robust management structure, we have established holding policies for each group company and formulated a concrete reduction plan. As for shareholder returns, we have decided to conduct a share buyback of JPY 50 billion, in accordance with our return policy under the current medium-term management plan and with a view to improving our capital efficiency.

Please turn to Page 6. I will now explain the M&A of Overseas Refining and Sales businesses announced today. This M&A involves the acquisition of Chevron Group's businesses in Southeast Asia and Australia for USD 2,170 million, which is approximately JPY 340 billion. In terms of profitability, we expect a contribution of approximately USD 250 million, which is approximately JPY 39 billion in operating profit by FY 2030. The closing is currently planned for 2027.

Please turn to Page 7. Let me outline the assets to be acquired. The business spans 6 countries: Singapore, Australia, Malaysia, the Philippines, Vietnam and Indonesia, covering fuel products and lubricants businesses. In Singapore, we will acquire a 50% stake in Singapore Refining Company, a joint venture with a PetroChina subsidiary, which operates a refinery with a capacity of 290,000 barrels per day.

Please turn to Page 8. This M&A is a core initiative under the portfolio restructuring outlined in our midterm management plan. Following extensive evaluation from a global perspective, we position this as a highly strategic investment that will further strengthen our core Refining and Sales businesses and drive future growth. Currently, overseas business accounts for just under 20% of our revenue. Through this acquisition and the expansion of trading business, we aim to increase this to around 50% by FY 2030.

Please turn to Page 9. The charts on this slide show long-term oil demand forecasts published by the IEA and IEEJ. As is widely recognized, domestic demand in Japan will continue to decline steadily. Therefore, I believe that expanding our focus to overseas markets is essential in order to strengthen and expand our Petroleum business. Through this acquisition, we will capture growth in Southeast Asia, where demand is expected to expand as well as in Australia, which is an export destination from Japan and leverage these opportunities to grow and expand our core Refining and Sales businesses.

Please turn to Page 10. Let me explain the strengths of the acquired assets and expected synergies. The key points of this M&A are the acquisition of a highly cost-competitive export-oriented refinery, downstream businesses in Southeast Asia offering stable margins and highly capable and experienced personnel. In addition, by expanding our physical asset base, including refinery, storage tanks and sales networks in the Asia Pacific region alongside Japan, we significantly broadened our trading footprint. This will create substantial upside potential in trading profits. Details on Trading business initiatives are provided on the next page and can be reviewed later.

Please turn to Page 12. As announced on May 11, we have decided to sell additional shares of JX Advanced Metals. Assuming full execution of the tender offer, we expect a positive impact of approximately JPY 110 billion on FY 2026 operating profit. We have also decided to conduct a share buyback of JPY 50 billion, in line with capital efficiency improvements and shareholder return policy. The chart on the right shows the status of our cash allocation reflecting these actions. Excluding inventory valuation, we expect net income of approximately JPY 660 billion over FY 2025 to FY 2026 to achieve a total payout ratio of 50%, an additional shareholder return of approximately JPY 100 billion will be required. In accordance with our policy of maintaining a total payout ratio of over 50% on a 3-year average basis, we will consider additional returns at an appropriate time, taking into account future performance.

Please turn to Page 13. We continue to rigorously apply our stage-gate framework in evaluating investment projects. With the introduction of third-party reviews, we have achieved tangible results, including early screening of projects that do not meet our strategic or risk return criteria. At the same time, a number of projects are progressing toward final investment decisions through deeper evaluation at each stage. Recently, we approved and decided to reenter into the LNG Tiga project in Malaysia. This project expands our low-carbon business portfolio and will be promoted in partnership with Petronas, Malaysia's national oil company.

Please turn to Page 14. As previously announced in November, our Electricity business and Renewable Energy business have been integrated under a unified management structure and Natural Gas businesses are unified into ENEOS Xplora, since April of this year.

Next, I will explain progress of our second pillar, transformation to a robust management structure. Please turn to Page 16. This slide shows progress on the restructuring of our group companies organization and structure. We have established holding policies for each company and formulated a plan to reduce the number of group companies by approximately 100 compared to the end of March 2025. We will now move to the execution phase, including divestitures, integrations and restructuring. Through this initiative, we aim to both reduce the number of companies and strengthen governance of remaining entities, thereby improving group-wide ROIC. Please turn to Page 17. As part of these efforts, we reduced 13 companies in FY 2025. The details shown here summarize our previous press releases, so please refer to them later.

Please turn to Page 18. This slide highlights progress in AI utilization across our operations, which we consider a key management priority alongside group restructuring. As an example, I will introduce our plan for optimizing the entire supply chain. We have already been leading the use of AI in areas such as crude oil shipping optimization and autonomous plant operations. Going forward, we will leverage the big data accumulated through these initiatives by feeding it into AI systems. Even in a constantly changing environment of market conditions and demand, we believe this will enable us to capture profit opportunities and generate significant earnings.

Please turn to Page 19. Finally, I would like to touch on initiatives to enhance refinery competitiveness. In the most recent quarter, refinery utilization rate, excluding periodic repairs reached 86%, excluding Middle East-related impacts. We will continue implementing measures to achieve our FY 2027 target of 90%. As noted on the lower-right, in Petrochemicals, we have decided to shut down 1 ethylene unit at our Kawasaki Refinery as part of optimizing the production and supply. Given the continued decline in domestic ethylene demand and limited prospects for a significant recovery in the competitive environment, this decision will help reduce costs and improve utilization rates, thereby strengthening the competitiveness of our Petrochemical business. This concludes my presentation.

I am Soichiro Tanaka. I will now explain our financial results for FY 2025 and the outlook for FY 2026. Please turn to Page 21. Let me begin with the highlights of our financial results.

For FY 2025, operating profit increased by JPY 94.9 billion year-on-year, mainly driven by improved inventory valuation from the rise in oil prices in March. Excluding inventory valuation, operating profit increased by JPY 45.1 billion, while onetime factors such as the reversal of goodwill impairment loss recorded last year and impacts related to the JX Advanced Metals IPO largely offset, the increase was mainly from the positive time lag effects with higher oil prices due to the Middle East situation.

Please turn to Page 22. With regard to the FY 2026 outlook, it remains extremely difficult to predict when the situation in the Middle East will stabilize. In this forecast, we assume that the impact on our business will be limited until around April and May 2026, including those from procurement, production, sales and market conditions. Taking into account damage to infrastructure in the Middle East, we assume, a Dubai crude price of USD 80 from June onward.

Please turn to Page 23. Based on these assumptions, we forecast operating profit for FY 2026 to increase by JPY 143.4 billion year-on-year. While the positive time lag effects recorded in the previous year are expected to reverse as the Middle East situation stabilizes, this will be more than offset by higher earnings in the Oil and Natural Gas E&P business as well as gains from the sale of JX Advanced Metal shares, excluding inventory valuation, operating profit is expected to increase by JPY 115.6 billion year-on-year.

Please turn to Page 25 for the business environment. Dubai crude prices started the fiscal year at $76 and remained weak throughout most of the year. However, they surged in March amid escalating tensions in the Middle East, closing the fiscal year at $121. As a result, the annual average came to $72, down $7 year-on-year. The exchange rate started at JPY 150 and strengthened into the low JPY 140 range, reflecting U.S. monetary policy trends. It then weakened again, reaching JPY 160 at the end of March, partly due to heightened geopolitical tensions in the Middle East. The annual average rate was JPY 151, representing JPY 2 stronger year-on-year.

Please turn to Page 26. Petroleum Product margins for the full year were slightly higher than the previous year due to time lag effects at the end of FY 2025 driven by Middle East situation. Paraxylene margins temporarily weakened due to high run rates of paraxylene units across Asia. However, supported by the removal of import restrictions in India and the deterioration of situation in the Middle East, margins for the full year were broadly in line with the previous year. Pages 28 and 29 provide the overall results and operating profit by segment. I will walk you through the details from Page 30 onward. Please turn to Page 30.

Operating profit, excluding inventory valuation for Petroleum Products business increased by JPY 293.3 billion year-on-year to JPY 300.2 billion. This was driven by the reversal of onetime factor, including goodwill impairment loss and the sale of the Maritime Transportation business and time lag effects associated with rising oil prices. Operating profit in Oil and Natural Gas E&P business decreased by JPY 36.6 billion year-on-year to JPY 50.8 billion, mainly due to lower resource prices and the impact of a stronger yen.

Please turn to Page 31. Operating profit in High Performance Materials business decreased by JPY 6.6 billion year-on-year to JPY 11.1 billion, while sales volume growth in high-performance rubber for fuel-efficient tires contributed positively, results were impacted by onetime factor at group companies. Operating profit in Electricity business increased by JPY 1.0 billion to JPY 22.0 billion despite impairment losses. This was supported by the full operation of the Goi thermal power plant, which began phased operations last year as well as increased sales volume.

Please turn to Page 32. Operating profit in Renewable Energy business improved by JPY 16.0 billion year-on-year to negative JPY 0.9 billion. Although expenses for upfront project had a negative impact, this was offset by the new power plant start-ups and the reversal of impairment losses recorded in FY 2024. Operating profit in Other segment decreased by JPY 222.0 billion year-on-year to JPY 91.2 billion, mainly due to the absence of gains related to the JX Advanced Metals IPO and a reduction in our ownership interest.

Moving to Page 33 for cash flows and the balance sheet. On the left, operating cash inflow for FY 2025 totaled JPY 620.0 billion, mainly reflecting JPY 474.4 billion in operating profit, excluding inventory valuation and JPY 329.2 billion in depreciation and amortization. Investing cash outflow was JPY 252.0 billion, primarily due to JPY 333.8 billion in capital investment. As a result, free cash flow was an inflow of JPY 368.0 billion. After dividend payment and other items, net cash inflow was JPY 251.1 billion. On the right, as of March 31, 2026, net interest-bearing debt, including lease liabilities, stood at JPY 1.7038 trillion, and the net D/E ratio was 0.42.

Please turn to Page 35. Let me now explain our FY 2026 outlook. Based on the assumptions discussed earlier, we forecast full year operating profit of JPY 610.0 billion, an increase of JPY 143.4 billion year-on-year. Excluding inventory valuation, operating profit is expected to be JPY 590.0 billion, up JPY 115.6 billion. Profit attributable to owners of the parent, excluding inventory valuation, is projected to increase by JPY 135.8 billion to JPY 400.0 billion. Details of our operating profit outlook by segment will be explained using the waterfall chart.

Please turn to Page 37. In Petroleum Products business, operating profit, excluding inventory valuation, is expected to decrease by JPY 23.9 billion to JPY 265.0 billion due to the loss of onetime gains from the sale of the Maritime Transportation business and negative time lag effects from lower oil prices. In Oil and Natural Gas E&P business, operating profit is expected to increase by JPY 37.9 billion to JPY 100.0 billion, supported by higher resource prices and a weaker yen.

Please turn to Page 38. In High Performance Materials business, operating profit is expected to increase by JPY 4.9 billion to JPY 16.0 billion, driven by volume growth in strategic products such as high-performance rubber for fuel-efficient tires and binders for lithium-ion batteries despite higher expenses due to inflation. In Electricity business, operating profit is expected to decrease by JPY 7.0 billion to JPY 15.0 billion due to the regulatory termination of the interconnection lines and higher procurement costs despite higher sales volumes and reversal of impairment losses.

Please turn to Page 39. In Renewable Energy business, operating profit is expected to increase by JPY 1.9 billion to JPY 1.0 billion, supported by the reversal of impairment losses despite the reversal of favorable weather conditions in FY 2025 and temporary increase in repair costs at existing power plants. In Other segment, excluding the impact of the sale of JX Advanced Metals share, results are expected to be broadly in line with the previous year.

Please turn to Page 40. I will explain our cash flow outlook for FY 2026, as shown on the left side. Excluding the impact of holidays, operating cash flow for FY 2026 is expected to be an inflow of JPY 615.0 billion, investing cash flow is expected to be an outflow of JPY 381.0 billion, reflecting capital investment of JPY 672.0 billion and proceeds of JPY 250.0 billion from the sale of JX Advanced Metals shares. As a result, free cash flow, excluding the impact of holidays, is projected to be an inflow of JPY 234.0 billion. The net D/E ratio at the end of March 2027 is expected to be 0.39, including the financial impact of M&A in the Southeast Asia and Australia Petroleum Refining and Sales businesses scheduled for FY 2027, we estimate the ratio at 0.48.

Finally, for your reference, Page 42 provides information on the increase in WACC, reflecting higher domestic interest rates and ROIC by segment. Pages 43 and 44 outline progress and initiatives to enhance corporate value, while Page 45 onward provides assumptions and sensitivities.

Thank you very much for your attention.

I am Soichiro Tanaka. I would like to express our sincere gratitude to our shareholders and investors for your continued support and valuable advice regarding the business activities of the ENEOS Group.

Let me now explain the FY 2025 Q3 financial results according to the materials. Please turn to Page 3. Let me start with the highlights. For the first 9 months of fiscal 2025, our operating profit was JPY 270.8 billion, a JPY 31.7 billion decrease year-on-year, mainly due to a deterioration in inventory valuation effects following the decline in oil prices.

Excluding inventory valuation, operating profit increased JPY 4.1 billion year-on-year. The negative factors such as lower profit in oil and natural gas E&P driven by falling resource prices and the equity reduction of JX Advanced Metals were more than offset by positives, including higher petroleum products margins in the petroleum products business and gains from the sale of the Maritime Transportation business. For the full year outlook, considering potential risks in resource prices and exchange rates in Q4, we have decided to maintain the forecast announced in November.

Please turn to Page 5 for our progress under the fourth medium-term management plan. This page summarizes our initiatives to strengthen our base and materials businesses. As you can see on the left, our refinery utilization rate has continued to improve, reflecting the effects of our ongoing measures to reduce refinery issues. Building on these efforts, we will further raise utilization by investing in appropriate repair costs and leveraging AI and DX.

On the right, as announced in our recent press release, we have decided to increase production capacity at the Yokkaichi plant for S-SBR, a high-performance rubber used in fuel-efficient tires. By prioritizing investments in high-growth areas, we pursue growth that exceeds the market growth rate and further business expansion.

Please turn to Page 7 for the business environment. Dubai crude oil price began at $76 per barrel in April. Prices temporarily rose amid heightened tensions in the Middle East, but later declined on against the backdrop of U.S. policy trends. As a result, the average for the first 9 months came to $67, down $12 year-on-year. The exchange rate began at JPY 150 per U.S. dollar, strengthened into the low JPY 140s on U.S. monetary policy trends and later weakened again. As a result, the average exchange rate for the first 9 months was JPY 149 for yen stronger year-on-year.

Please turn to Page 8. The petroleum products margin index fluctuated with crude oil prices and exchange rates but remained broadly in line with last year's level. In contrast, the paraxylene margin index deteriorated year-on-year, reflecting high run rates of paraxylene units across Asia and weaker market conditions in downstream products. Pages 10 and 11 provide the overall results and operating profit by segment. I will walk you through the details from Page 12 onward.

Please turn to Page 12. Operating profit, excluding inventory valuation for petroleum products business increased by JPY 81.1 billion year-on-year to JPY 239.3 billion. This reflects a JPY 31.9 billion improvement in margins and expenses, primarily from stronger petroleum products margins and JPY 76.6 billion in onetime gains from the sale of the Maritime Transportation business. In oil and natural gas E&P business, operating profit decreased by JPY 27.0 billion year-on-year to JPY 45.7 billion due to lower resource prices and the stronger yen.

Please turn to Page 13. In High Performance Materials business, operating profit rose by JPY 0.5 billion year-on-year to JPY 14.3 billion. While lower butadiene market price and inflation-related cost increases were headwinds, these were offset by an increase in sales volume of high-performance rubber for fuel-efficient tires. In electricity business, operating profit increased by JPY 2.6 billion year-on-year to JPY 23.2 billion, supported by the full operation of the Goi thermal power plant, which began phased operation last year and by higher sales volumes.

Please turn to Page 14. In Renewable Energy business, operating profit was JPY 0.5 billion, roughly unchanged year-on-year. Although upfront spending on projects under development and impairment losses associated with tighter regulations weighed on results, these were offset by new power plant start-ups and a reversal from last year's unfavorable weather. In Other segment, operating profit was JPY 68.4 billion, a JPY 53.2 billion decrease year-on-year. While JX Advanced Metals benefited from higher copper prices and increased sales of semiconductor and ICT materials, overall results declined primarily due to the equity reduction of JX Advanced Metals.

Moving to Page 15 for cash flows and the balance sheet. On the left, operating cash inflow for the first 9 months totaled JPY 393.9 billion, mainly reflecting JPY 391.4 billion in operating profit, excluding inventory valuation and JPY 243.8 billion in depreciation and amortization. Excluding the impact of holidays, operating cash inflow was JPY 291.6 billion.

Investing cash outflow was JPY 173.5 billion, primarily due to JPY 219.2 billion in capital investment. As a result, free cash flow, excluding holiday impacts, was an inflow of JPY 118.1 billion. After dividend payment and other items, net cash inflow was JPY 102.0 billion. On the right, as of December 31, 2025, net interest-bearing debt, including lease liabilities, stood at JPY 1.831 trillion, and the net D/E ratio was 0.48.

This concludes my presentation. Pages 16 onwards are for your reference, such as an assumptions and sensitivities. Please refer to them later as needed. Thank you for your attendance.

Thank you for the kind introduction. My name is Tsuji. Thank you very much for visiting the ENEOS Materials Yokkaichi plant today. To begin, I would like to explain what ENEOS Materials is. ENEOS Materials is the operating company in the ENEOS Holdings Group responsible for materials. First, I will briefly introduce who we are as ENEOS Materials.

And next, I will share where we are heading. And finally, I will explain the role and positioning of the Yokkaichi plant within ENEOS Materials. So thank you in advance for your attention. Now let me begin our business briefing. Here is today's agenda. Corporate overview and business activities, ENEOS Materials strength, market environment and growth opportunities, medium-term growth strategies and sustainability strategies.

And next slide, please. First, a corporate overview of ENEOS Materials. ENEOS Materials was established on April 1st, 2022, through an absorption-type company split and stock transfer of JSR's elastomer business. In April 2024, we integrated ENEOS' former High Performance Material business and formed the current ENEOS Materials. As of April 1st, 2025, we have roughly 3,000 employees across the group. And in fiscal 2024, our net sales were around JPY 350 billion.

This is our global footprint. Our operations are centered in Japan, mainly Yokkaichi, Chiba, Kashima and also Kawasaki within the ENEOS Group. Globally, we also have sites in Asia, Europe and the United States. Next slide, please. Let me briefly touch on our history. We started in 1957 when Japan's Synthetic Rubber Company Limited was founded as a semi-governmental company.

Then we launched Yokkaichi plant in 1960, Chiba plant in 1968 and Kashima plant in 1971. To meet global demand for fuel-efficient tires, we established SSBR Solution Styrene Butadiene Rubber production in Thailand in 2011 and in Hungary in 2014. In 2022, as I mentioned, ENEOS Materials was launched through a carve-out. And in 2024, we integrated the High Performance Materials business. Next slide, please. Now I will introduce our products and business overview. Our largest business is elastomers, transferred from the former JSR business. And we have combined that with ENEOS' high-performance material products. So we have a wide range of elastomer products.

They include general purpose synthetic rubber, special synthetic rubber, thermoplastic elastomers and emulsion products. On the Performance Materials side, we offer high-performance monomers and high-performance polymers. From a market perspective, our business is broadly grouped into 3 areas: tire materials, battery materials and performance materials.

Next slide, please. This is our market position in elastomers. ENEOS Materials is the #1 manufacturer of elastomers in Japan and #4 in Asia. We have about 400,000 tons of capacity in Japan and about 500,000 tons across Asia.

Next slide, please. The largest business within our portfolio is tire materials. Around 60% of our sales come from tire materials. If we include automotive applications more broadly, roughly 80% of our sales are related to the automotive industry. As I mentioned, we have a global footprint. Our overseas sales ratio is about 56%. So we conduct more than half of our business outside of Japan.

Now regarding tire materials, even though we say tires, different elastomers are used in different parts of the tire. Let me briefly explain by component. First, that thread, this is the most important part. As shown on the right of the diagram, the thread is the contact surface between the tire and the road. This is one of the key areas where tire performance is delivered.

In the tread, our materials are used Styrene Butadiene Rubber, including S-SBR and E-SBR Butadiene Rubber, Isoprene Rubber and Petroleum Resins. Of course, natural rubber is also used there. On the other hand, the side wall [indiscernible] and deform. So it needs properties such as flex resistance and low heat buildup.

For that, materials like polybutadiene rubber are used. There's also the inner liner. The inner liner must prevent air from leaking. So low gas permeability is required. Therefore, the till rubber is mainly used there. So even within a tire, different materials are selected depending on the function of each part. And we are a company that supplies these materials for tires.

Next slide, please. And next, I will briefly explain our Battery Materials business. As you all know, electric vehicles are rapidly spreading worldwide. Lithium-ion batteries are a critical component of EVs. As shown in the diagram on the right, rubber is used as a binder that holds the active materials together in both the positive and negative electrodes.

In particular, we supply materials for the carbon binder used in the negative electrode. This is SBR, Styrene Butadiene Rubber. That is how we develop our battery materials business.

Next slide, please. Next is Performance Materials. I mentioned that we support automotive applications beyond tires. So where are they used? As you can see in the illustration, for example, the black rubber around door frames and window frames is widely used. And those applications use materials such as EP rubber, Ethylene Propylene Rubber and [ TPV ] a Thermoplastic Elastomer. We supply materials for those applications and also for cooling and radiator hoses where EP rubber is used.

Meanwhile, for fuel hoses and brake hoses, areas that require superior oil resistance, rubber is also essential. For those, NBR, Acrylonitrile Nitrile Butadiene Rubber with excellent oil resistance is used. Also, EP rubber requires an important monomer called ENV and we produce ENV as well. This is part of our automotive-related business.

Next slide, please. Let me briefly mention our nonautomotive applications. For example, RB is used for shoe soles. For adhesives, we provide petroleum resins and Polybutene. For golf balls, Polybutadiene Rubber is used in the core. For medical applications, materials such as hydrogenated rubber at DYNARON as well as Polybutadiene and polyisobutylene are used. Our materials are also used in food trays and encoated paper applications. This is the type of company we are.

Next, let me explain our raw materials. This slide shows which fractions from a naphtha cracker we use. Naphtha cracker shown in the center, produces various fractions compared with lighter olefins like ethylene and propylene, we focus on the heavier C4 fraction. This C4 fraction for carbon fraction is the most important feedstock for ENEOS materials.

From C4, we refine and use monomers such as butadiene and isobutylene. From heavier fractions such as C5 and higher, we obtain materials like Isoprene and DCPD/ENB. Using these feedstocks, we manufacture elastomers and high-performance polymers.

Next slide, please. Now I'd like to talk about our strength. So since our founding in 1957, we began by building a business that produces polymer materials mainly from the C4 fraction. So we have continuously deepened our polymer technologies and expanded into various businesses and most importantly, supplied our customers with high-quality and stable mass production, and we see this as our greatest strength.

Leveraging these polymer technologies, we have consistently entered new growth markets. As I mentioned earlier, we have expanded into growth areas by delivering high-performance products such as rubber for fuel-efficient tires, solution SPR and battery binder for lithium-ion batteries.

We also believe ENEOS Group synergy is another key strength. And I will explain that on the next slide. And there are 3 points. First, strengthening environmental responsiveness. By working with ENEOS, a major petrochemical manufacturer, we promote carbon neutrality initiatives such as using sustainable materials and reducing greenhouse gas emissions in our processes.

And second, enhancing product development capabilities. We combine ENEOS' R&D technologies with ENEOS Materials synthetic rubber technologies to develop new materials. Third, securing stable supplies of raw materials and reducing costs by leveraging abundant petrochemical raw materials produced at ENEOS petroleum refineries. We can ensure stable supply and achieve cost reductions.

From the next slide, I will explain the market environment and growth opportunities. First, I will talk about solution SBR for fuel-efficient tires. As you know, decarbonization requirements are strengthening across countries. And as a result, demand for fuel efficiency is rising. In particular, Europe has strict CO2 emissions regulations.

In line with the European Commission's targets shown in the graph on the lower left, CO2 emissions are expected to be reduced over time. Reducing CO2 emissions, in other words, means improving vehicle fuel efficiency. To improve fuel efficiency, it is essential to reduce tire rolling resistance. And the most challenging and the largest contributor is the Tread, as I mentioned earlier.

The Tread accounts for roughly half of the tires contribution to fuel economy. So to reduce CO2 emissions, that is to improve fuel economy, so we need to lower rolling resistance. And that makes the rubber using a Tread a critical technology element.

Tire Tread is not only responsible for fuel efficiency, but also plays a vital role in grip or breaking performance. In order to improve such performance, it is necessary to improve the functionality of the rubber used in tires, and we believe that our technology can be effectively applied here.

On the next page, I'd like to discuss another important requirement for the tread of tires. In recent years, particularly in Europe, a new regulation known as Euro 7 is expected to be introduced to address the issue of microplastics in the environment.

There are 2 major types of microplastics emitted from automobiles. One is tire wear particles and the other is brake wear particles with regard to tire wear particles, reducing microplastics by improving tire wear resistance. In other words, reducing tire wear has become a critical issue. There is another issue. In recent years, vehicle bodies have tended to become larger, driven by growing demand for cars like SUVs.

In addition, electric vehicles or EVs are significantly heavier due to the large number of batteries they carry. These trends toward larger vehicles and electrification have a substantial impact on tire wear resistance. Therefore, improving the wear resistance of tires is another important performance requirement.

Fuel efficiency, grip and wear resistance are referred to as the magic triangle in our industry and improving all of these 3 factors is required. To address this challenge, we are focusing on solution SBR to enhance rubber performance.

On the next page, I'll talk about the market environment for the solution SBRs. According to market research firms, the global solution SBR market is forecasted to grow at a CAGR of 2.9%. In particular, solution SBR for fuel-efficient tires or high-performance solution SBR is expected to grow at 3.1%, outpacing the overall solution SBR market.

On the next page, I'll briefly discuss battery binders. The market for lithium-ion batteries is expanding significantly due to the global proliferation of electric vehicles. In addition, lithium-ion batteries have recently been widely used in storage batteries, especially in ESS for renewable energy and in data centers.

We supply binders for these lithium-ion batteries and through our proprietary highly controlled binder particle design, we are working to achieve strong adhesion to active materials as well as high durability for lithium-ion batteries.

Next page is about our core business. As mentioned earlier, about 80% of ENEOS Materials business is derived from tires and automotive-related applications. While demand remains solid, as you're aware, the Japanese automotive industry has matured and significant future growth cannot be expected. On the other hand, more and more ethylene crackers are being launched in China. And there is a great deal of momentum for restructuring in the Japanese cracker industry and our sourcing from C4 fraction is reducing.

Under these circumstances, our top priority in the core business is to secure stable supply to our customers. And to achieve this, we are strengthening cost competitiveness and operating with a lean structure. This is how we respond to the market environment of our core business.

Now from the next page, I'd like to explain the growth strategies in our medium-term management plan, which started in fiscal year 2025.

Next page shows an overview. Our corporate vision is to be a group that continuously grows with operating profit of over JPY 20 billion in FY 2027, the final year of the medium-term management plan.

Our target ROIC at that time is around 7%. As a business strategy, we focus on 2 growth businesses in this medium-term management plan, that is solution SBRs, which I have already discussed and binders for batteries.

Hello, everyone. I'm Tomohide Miyata. I would like to express our sincere gratitude to our shareholders and investors for your continued support and valuable advice regarding the business activities of the ENEOS Group.

Let me now explain the FY 2025 Q2 financial results according to the materials. Please turn to Page 3. Operating profit for the first half of FY 2025 was JPY 166.7 billion. This includes a negative inventory valuation impact of JPY 106.8 billion. Excluding this impact, actual operating profit was JPY 273.5 billion, an increase of JPY 65.3 billion year-on-year.

While profit from the oil and natural gas E&P business declined due to the falling oil prices and yen appreciation, the petroleum products business significantly improved, driven by higher petroleum product margins and gains from the sale of the Maritime Transportation business.

Please turn to Page 4. We have revised our full year operating profit forecast to JPY 290 billion, down JPY 70 billion from the figure announced in May, reflecting the impact of lower oil prices on inventory valuation. On the other hand, operating profit, excluding inventory valuation, is forecasted to be JPY 420 billion, up JPY 10 billion from the May outlook. However, operating profit, excluding inventory valuation, is expected to be JPY 420 billion, up JPY 10 billion from the May outlook. Although there will be a temporary negative impact from time lag effects, we expect actual profit growth in the petroleum products business, excluding time lag as well as in the electricity business, driven by higher sales volume.

From Page 5 onward, we will explain the progress of our fourth medium-term management plan. Please turn to Page 6. One of the key pillars of our fourth medium-term management plan is transforming into a robust management structure. To achieve this, we are actively and firmly driving a fundamental restructuring of the organization and systems across ENEOS Group companies. As shown in the middle right of the slide, at the start of the fourth medium-term management plan in March 2025, we had 651 consolidated subsidiaries, of which 535 were actual operating companies, excluding paper companies, with many belonging to the petroleum products business and Nippo Group.

We view the petroleum products business as an area with significant potential for efficiency improvements, and we are focusing our efforts accordingly. In the first half of this fiscal year, the number of companies effectively decreased by 3 due to the restructuring of sales subsidiaries. However, since we are still only halfway through the process, we aim to achieve thorough reductions and restructuring to strengthen group governance.

Please turn to Page 7. In addition to the restructuring of group companies, we also carried out business reorganization among major operating companies during this first half. Starting next April, we plan to have shared executive appointments, administrative divisions and part of business operation divisions between ENEOS Power, which handles the electricity business and ENEOS Renewable Energy, which handles the renewable energy business. We also plan to integrate ENEOS' natural gas business into ENEOS Xplora, which is responsible for oil and natural gas exploration and production. By operating these businesses together, we aim to improve efficiency, pursue new growth opportunities and maximize group-wide profits.

Please turn to Page 8. Utilizing AI is also a key initiative in our transformation toward a robust management structure. We have already applied AI in specific areas such as optimizing crude oil shipping and automating the topper unit at the Kawasaki refinery. However, we recognize that we have not yet fully utilized AI across all business areas. We also see potential for AI to be applied in management and administrative functions. To address these challenges, we established the AI innovation department in June under the direct supervision of the President.

Although it has only been 6 months since the announcement of the medium-term management plan, and we are not yet able to present concrete results regarding AI utilization, we aim to significantly improve operational efficiency and create profit-making opportunities through data utilization. We'll continue to share updates at key milestones.

Please turn to Page 9. Let me explain our initiatives to improve refinery utilization rates, which are a key measure in the fourth medium-term management plan. As shown in the line graph on the left, multiple large-scale unplanned shutdowns occurred in Q1, temporarily lowering refinery utilization rates. However, thanks to horizontal knowledge sharing and the effect of continued measures, utilization rates are now improving.

As shown in the center right of the slide, our initiatives to improve refinery utilization rates include not only reducing issues, but also reforming maintenance operations through AI and DX. We aim to enhance competitiveness by improving evaluation accuracy and operational efficiency. While these initiatives take a while, we believe that by steadily carrying them out, we will ultimately achieve concrete results, including higher operating rates and maximized profits.

Please turn to Page 10. On the left side of the slide, you can see that under the fourth medium-term management plan, we have set an allocation management framework of JPY 500 billion to JPY 1 trillion to be allocated to strategic investments and additional shareholder returns flexibly. In the first half, strategic investments totaled JPY 15.8 billion, which is still limited at this stage. However, as shown in the upper right of the slide, we currently have candidate projects totaling several hundred billion yen under review for investment execution. We're evaluating these with cold eye review from multiple perspectives, prioritizing synergy creation with existing businesses. We'll continue selecting investment targets, including cross-border M&A beyond organic growth.

Please turn to Page 12. Based on the solid progress in FY 2025 financial performance and medium-term management plan initiatives, we have decided to raise the level of shareholder returns. The annual dividend for FY 2025 will be JPY 34 per share, an increase of JPY 4 from the May announcement and JPY 8 year-on-year. We will continue to accelerate our efforts to achieve the medium-term management plan targets and strive to enhance corporate value. That concludes my presentation. Now CFO, Tanaka, will explain the financial details.

I'm Soichiro Tanaka. I will now walk you through the financial results for the second quarter of FY 2025 and our full year outlook according to the materials. Please turn to Page 14. The Dubai crude oil price started at $76 per barrel at the beginning of the quarter, temporarily dropped below $60 due to expectations of increased production by OPEC+ and then rose again due to heightened tensions in the Middle East. As a result, the quarterly average was $69, down $13 year-on-year. The exchange rate started at JPY 150, appreciated to the low JPY 140 range due to concerns over an economic slowdown stemming from U.S. tariff policies and then depreciated again due to Middle East tensions and U.S. monetary policy trends. The quarterly average was JPY 146, an appreciation of JPY 7 year-on-year.

Please turn to Page 15. The petroleum products margin index remained at a high level, similar to the previous year. The paraxylene margin index deteriorated year-on-year mainly due to the impact of U.S. tariff policies. On Pages 17 and 18, you'll find the overall results and segment breakdown, and I'll cover the details from Page 19.

Please turn to Page 19. Operating profit, excluding inventory valuation for petroleum products business increased by JPY 123.4 billion year-on-year to JPY 178.1 billion, mainly due to a JPY 45.5 billion improvement in margin, expense, et cetera, driven by higher petroleum products margins and a JPY 76.7 billion onetime gain from the sale of the Maritime Transportation business. For oil and natural gas E&P business, although sales volumes increased due to a higher equity interest in Vietnam and production growth in Middle East projects, operating profit declined by JPY 19.4 billion year-on-year to JPY 27.3 billion due to lower resource prices and the impact of strong yen.

Please turn to Page 20. Operating profit for High Performance Materials. Business increased by JPY 0.3 billion year-on-year to JPY 9.4 billion, driven by increased sales of high-performance synthetic rubber for fuel-efficient tires and improved selling prices, although there were negative impacts from lower butadiene market prices and increased expenses due to inflation. Operating profit for electricity business increased by JPY 4.5 billion year-on-year to JPY 18.7 billion, mainly due to increased sales volume and full operation of the Goi thermal power plant. Last year, we brought each of its units online in phases, and now we've reached full capacity.

Please turn to Page 21. Operating profit for renewable energy business decreased by JPY 0.3 billion year-on-year to JPY 1.1 billion. While there were positive factors such as the start-up of new power plants and a reversal from unfavorable weather in FY 2024, profit declined mainly due to upfront expenses for projects under development and impairment losses resulting from tightened regulations. Operating profit for the Other segment was roughly in line with the previous year, excluding the impact of reduced equity from the sale of JX Advanced Metals shares.

Please turn to Page 22 for balance sheets and cash flows. On the left is the cash flow. Operating cash flow for Q2 was a cash inflow of JPY 334.3 billion, mainly from operating profit, excluding inventory valuation of JPY 273.5 billion and depreciation and amortization of JPY 160.7 billion. Investment cash flow was a cash outflow of JPY 123.0 billion, mainly due to capital investment of JPY 131.8 billion. As a result, free cash flow was a cash inflow of JPY 211.3 billion and net cash flow, including dividend payments was a cash inflow of JPY 131.9 billion. As shown on the right, net interest-bearing debt, including lease liabilities, was JPY 1,760.2 billion, and the net D/E ratio was 0.47.

Next, let me explain the full year outlook. Please turn to Page 24. From October onward, we assume a Dubai crude oil price of $65 per barrel and an exchange rate of JPY 150 to the U.S. dollar. Based on these assumptions, we have revised our full year operating profit forecast to JPY 290 billion, down JPY 70 billion from the figure announced in May. Operating profit, excluding inventory valuation, is expected to be JPY 420 billion, up JPY 10 billion from the May outlook and profit attributable to owners of the parent, excluding inventory valuation is projected to be JPY 225 billion, an increase of JPY 5 billion.

Details of the FY 2025 full year operating profit by segment are explained starting on Page 26. Operating profit, excluding inventory valuation for petroleum products, business is expected to be JPY 240 billion, roughly in line with the May outlook as improved petroleum product margins are expected to offset the impact of negative time lag and lower sales volumes. For oil and natural gas E&P business, operating profit is projected at JPY 50 billion, down JPY 5 billion from the May outlook, mainly due to lower resource prices.

Please turn to Page 27. Operating profit for High Performance Materials business is expected to be JPY 16 billion, an increase of JPY 3 billion from the May outlook due to improved margins from exchange rate effects and cost optimization, even though sales volumes are expected to decline. Operating profit for electricity business is expected to be JPY 32 billion, an increase of JPY 9 billion from the May outlook, mainly due to higher sales volume, improved procurement costs from revised assumptions and expense reductions.

Please turn to Page 28. Operating profit for Renewable Energy business is expected to be roughly in line with the May outlook. While positive factors such as increased power generation from favorable sunlight and cost reductions are expected, these will be offset by facilities issues and impairment losses resulting from tightened regulations on development projects. Operating profit for the Other segment is expected to be JPY 81 billion, an increase of JPY 3 billion from the May outlook, mainly reflecting higher earnings from JX Advanced Metals driven by weaker yen and rising copper prices.

This concludes my presentation. Pages 29 onwards are for your reference, such as assumptions and sensitivities. Please refer to them later as needed. Thank you for your attention.

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