Consolidated results for the second quarter of the fiscal year ending March 31, 2024 (April 2023-March 2024) exceeded the initial forecast, despite continued challenges in the face of a stalled global economic recovery, mainly in China.

In the film segment, we have been focusing on automotive interior materials for the last several years with the aim of expanding our sales area from materials for electronic devices such as smartphones, and we have seen an increase in the number of new orders. In addition, the number of orders for heat-resistant, weather-resistant, and insulating materials for electric vehicles (EVs) is also on the rise.

Regarding the Digital Twin business, the demand for 3D data in the architecture and construction industry has increased due to the national policy of applying BIM/CIM principles. Additionally, the projects for 3D data maintenance in the National Resilience Project have been progressing steadily, and we have contributed with our technology. To further contribute not only to the construction industry but also to the manufacturing industry, we held seminars in Sendai, Hokkaido, and Kanto following last year's events in Kyushu and Osaka. We will continue to hold these events in various cities.

In the area of technology, we have set the goal of quadrupling the number of newly developed products in the market, and we are working on a division of labor between design and experimentation. Our efforts to increase the number of man-hours for each, with design work done by development staff and experimentation performed by factory staff, and to promote development in an efficient and intensive way, are making steady progress, and have begun to yield positive results.
Furthermore, in the manufacturing sector, we are promoting the automation and efficiency of manufacturing with the keyword 'Fun and Easy' through multi-skilling employees so that they are not confined to a single task and by collaborating with the Digital Twin Division to advance factory DX.

In terms of topics pertaining to the entire Company, we started the operation of a new enterprise resource planning (ERP) system in July. This is our first ERP system. Our goal is to create a framework that enables us to visualize existing conditions from receiving orders to manufacturing and sales (material purchases, manufacturing processes, actual cost introduction, etc.) and swiftly resolve any issues that may arise. With the introduction of this system, we have been reviewing our workflow to bring it in line with the standard specifications of the system to break away from the complicated workflow of the past. We will continue to push these reform efforts forward to ensure an efficient workflow.

Finally, regarding the rice from KIMOTO Farm, which we cultivate as part of our regional contribution efforts, this year we grew it without using any pesticides or chemical fertilizers during the growth period after transplanting, aiming for organic cultivation. This rice is produced with the desire not only for deliciousness but also to deliver safe and secure rice to everyone and to contribute to the realization of an environmentally friendly society. We would be delighted if KIMOTO fans could also enjoy tasting it.

I am sincerely grateful to all KIMOTO fans for their unwavering support.