Hideki Somemiya
Managing Corporate Officer, CFO & Director

Good evening, everyone. I'm Hideki Somemiya, CFO of Resonac Holdings. I'd like to express my sincere gratitude for your continued understanding and support for the company. Today, I will explain the overview of the financial results for the first quarter FY 2026 ending December.

First, please turn to Page 2 for key takeaways. There are 3 main points I'd like to share with you today. First, Semiconductor and Electronic Materials segment continued to perform strongly. Although the January-March quarter is usually affected by seasonal factors, Chinese New Year, revenue of the back-end semiconductor materials reached a record high on a quarterly basis due to the continued robustness of products for advanced semiconductors such as AI.

Second, core operating profit increased year-on-year. In addition to the stronger performance of the Semiconductor and Electronic Materials segment year-on-year, the effects of the structural reform implemented in the graphite electrode business in FY 2025 materialized and the reduction in losses in the Chemicals segment contributed to the overall profit increase.

Third, we revised the first half 2026 forecast upward. In particular, in the Semiconductor and Electronic Materials segment, products for advanced semiconductors such as AI grew faster than our previous forecast and that led to a significant upward revision of the previous announcement. Regarding the full year forecast, while progress has been steady, we have not revised the forecast at this time due to the uncertainty related to the Middle East situation.

Now let me explain 2026 first quarter consolidated financial results. Please turn to Page 4. This slide shows the consolidated results for January-March 2026 and year-on-year comparison. Revenue for this January