It seems that despite the varying market trends across different businesses and products, the Group has managed to maintain overall profitability, largely thanks to its business portfolio management. Could you elaborate on the features of the business portfolio management approach and the systems that support it? Additionally, considering future changes in the external environment, do you foresee any challenges in the current business portfolio or areas that may need strengthening going forward?

As I mentioned earlier, during fiscal 2023, the robust performance of the Life Care business offset the downturn in the Information Technology business, enabling the Group to achieve solid overall growth. On the other hand, during the COVID-19 pandemic, it was the exact opposite scenario—the Life Care business was hit hard by lockdowns and other restrictions, but strong demand in the Information Technology business driven by remote work and other factors stabilized things for the Group as a whole.

The macro environment is always changing, and with the recent rise in geopolitical risks, it has become even more important to diversify the regions, markets, and customers we engage with. This diversification, which takes account of both risks and opportunities, is crucial for stabilizing our business performance.

We have always adapted our business portfolio flexibly to changes in the external environment through the acquisition of new businesses and the sale of others. This survival-of-the-fittest management approach has allowed us to build a robust portfolio by retaining our strongest businesses. However, because markets and businesses go through life cycles from growth to maturity and eventually decline, it’s crucial to identify which stage each business or product in our portfolio is at and allocate management resources accordingly. To continuously develop our business portfolio, we prioritize acquiring businesses with medium- to long-term growth potential as a key task for the CEO. We actively pursue both internal development and M&A opportunities to this end.

Our business portfolio comprises more than 10 divisions that, in principle, operate independently. However, in October 2022 we reorganized these divisions into three internal companies under the themes of Eye Health, MedTech, and IT. When I was a division head, I observed that there was little collaboration between the divisions, and I felt that combining our individual expertise could lead to new business opportunities. Based on this idea, we are now promoting business development beyond existing frameworks under the unified themes of these internal companies.

With this system in place, we are focusing our attention on eye health and high-tech as areas with significant potential for structural growth. In eye health, the global rise in myopia and the increasing number of cataract patients due to aging populations are becoming major social issues. We aim to actively identify growth opportunities, including in areas not covered by our existing product range. In high-tech, advanced computing and data analytics technologies underpin modern society. We are continuously exploring innovative business opportunities, particularly around the materials and components that support these technologies behind the scenes.

Last, could you share your thoughts on any other future prospects, key initiatives, points to note, or messages you’d like to convey?

To reiterate, in the two years following the COVID-19 pandemic, the Life Care business compensated for a downturn in the Information Technology business. However, as of September 2024, the situation has shifted significantly. Due to the system disruption and an economic slowdown in the Chinese market, growth in the Life Care business is expected to slow slightly in fiscal 2024. Conversely, the Information Technology business is anticipated to experience robust growth, driven by the recovery of inventory levels for extreme ultraviolet (EUV) mask blanks and glass substrates for HDDs.

Demand for EUV mask blanks has significantly increased, fueled by the development of next-generation nodes. While we expect heightened competition in the medium term, we aim to maintain our leading position and high market share in next-generation products. Regarding glass substrates for HDDs, the exponential increase in data generation, particularly that related to generative AI, underscores the growing importance of cost-competitive HDDs. With the normalization of supply chain inventory levels that occurred by the end of 2023, demand for glass substrates for HDDs in fiscal 2024 is expected to match the peak levels seen in fiscal 2021. In response to these developments, we are enhancing capacity in both businesses.

As demonstrated, while the performance of individual businesses may fluctuate, our business portfolio management is enabling continued, stable growth for the Group as a whole. We will continue to optimize our business portfolio to respond flexibly to the rapidly changing external environment and ensure sustainable growth for the Company. We sincerely appreciate the continued support and encouragement of all our shareholders, investors, and other stakeholders.