Shinichi Taguchi
Executive Officer and Head of Finance & Investor Relations

I'm Taguchi, General Manager in charge of Finance and Investor Relations. I will present the outline of financial results. Please turn to Page 3 for highlights. In the Total Engineering business, we strengthened project execution capabilities and overall profitability improved due to steady progress in large-scale EPC projects, both domestic and overseas, while certain projects continue to be challenging in the fourth quarter. Operating profit exceeded expectation, though the financial results reflected the potential risks of project cost increase arising from armed conflicts in the Middle East starting from February.

In addition, the dollar-yen exchange rate at the end of the fiscal year settled in JPY 159 range, significantly weaker than our forecast of JPY 150 and higher nonoperating income, including foreign exchange gains contributed to increased net profit exceeding our forecast. Regarding the dividends, we had previously forecasted a minimum dividend of JPY 40, but based on the increase in net profit, we applied a 30% payout ratio under our shareholder return policy and plan to increase the dividend by JPY 12 to JPY 52 per share. We plan to revise our dividend policy from FY 2026, and I will explain it at the end of the presentation.

Please turn to Page 4. I will explain the Middle East situation. First, let me start with the business impact. In the total engineering business, the Middle East accounted for 45% of the order backlog as of the end of March 2026 and multiple large-scale projects are under execution. Under close coordination between headquarters and construction sites, we are working with careful measures