(Kamiwaki) This substantial increase reflects the use of our products in smartphones to be released from the 2H as well as the gradual recovery in binder resins for MLCCs that have been weak for a while during a period of inventory adjustment. Trends are essentially in line with plans.

(Kamiwaki) This is largely due to successful efforts aimed at capturing new opportunities in which our products maintain strength, including such processing materials as protection films for semiconductors.

(Okano) Trends in Japan and Europe are up YoY. In contrast, sales in China fell YoY, for a total decline of 2% in the 1Q. While anticipating a recovery in the 2Q, we expect YoY sales in China will remain weak compared with other regions.

(Kamiwaki) The forecast upswing in net sales factors in improvements in the product mix owing to an increase in the ratio of high-performance interlayer films such as HUD films and other use as well as a recovery in market conditions in China.

(Kamiwaki) Production rates are increasing for models that have a major impact on SEKISUI AEROSPACE CORPORATION’s business. On the other hand, this has necessitated the need to establish an appropriate production structure. Preparatory steps are being taken to put in place a production structure in the 1H in an effort to generate earnings commensurate with the increased production rate from the 2H.

(Kamiwaki) Sales of heat release materials are expected to continue to expand owing to the increased demand for EVs. Taking into consideration the smooth startup of operations at a new plant in North America, the effects are projected to emerge from the 2H.

: (Kamiwaki) Foam materials, plastic materials made from foamed PE or PP, are used across a wide range of fields, including construction materials, tape base materials, and electronics materials. While these underpin earnings in the Industrial field, operating profit was significantly impacted by the downturn in demand particularly for general-purpose foam materials in Europe.

(Kamiwaki) I believe that customers adopted a wait-and-see approach toward purchasing a home in the 1Q owing to the impact of inflation. Turning to the 2Q, the number of visitors has increased since the Golden Week holidays in June. Should this pace continue, I expect the number of visitors will return to around the same level as the corresponding period of the previous year, which was not all that large.

(Kamiwaki) Increases in unit prices are helping to partly offset the downturn in the number of houses sold. Efforts to strengthen profitability are also being made to compensate for the decline in the number of houses sold over the full fiscal year.

(Kamiwaki) We are shifting personnel from the indirect departments of the Housing Business to the Renovation Business and such Stock businesses as real estate brokering, where trends remain firm. Taking into consideration such factors as the volume of orders and production in each area, we will also look to optimize the production structure of our eight factories nationwide.

(Kamiwaki) The Other segment is largely comprised of two businesses. One is the Real Estate Business, including rental apartment management and real estate brokering, which provide a relatively stable earnings base for generating profit. The other is the Town and Community Development Business, which is exhibiting steady business growth. In addition to the Renovation Business, these two businesses combined are driving growth compared with the previous year.

(Kamiwaki) Despite the slight weakness in demand, we believe we will be able to maintain margins in the 1H in line with plans. While raw materials have exhibited a slight decline since the 2H, we are confident in our ability to maintain adequate margins between raw materials and selling prices. Coupled with mprovements in the product mix, including growth in high-value-added prioritized product sales, we will maintain marginal profits.

(Nishida) After posting foreign exchange gains in the 1Q, we expect to incur foreign exchange losses in the 2Q. Non-operating foreign exchange gains and losses are calculated based on the risk that the value of the yen will return to an appreciation trend, unchanged from the end of March.

(Kamiwaki) Development activities are progressing smoothly. Activities focus especially around bio refinery and perovskite solar cells. We are also promoting several other themes.