Prepared remarks
It's time to begin. Thank you for joining us despite your busy schedule today for ORIX's earnings call for 9 months ended December 31, 2025. My name is Nakane from Investor Relations, Sustainability Department. I'll be the master of ceremony. Thank you for this opportunity. Today, we have Operating Officer responsible for IR, Kazuki Yamamoto. And he will provide you with an explanation for about and it will be followed by Q&A and the whole program is scheduled to be approximately 1 hour. Yamamoto-san, the floor is yours.
Thank you for the introduction. I'm Kazuki Yamamoto, responsible for Corporate Planning, Investor Relations and Sustainability. I will discuss the financial results for the third quarter of the fiscal year ending March 2026. The key points are on page 2 of the handout. First, net income for the nine-month period was JPY 389.7 billion, up JPY 117.9 billion from the same time last year, marking our highest third quarter cumulative net profit. We reached 89% of our revised full-year forecast of JPY 440 billion announced during the first half results call. Secondly, pretax profits were JPY 567.7 billion, an increase of JPY 184.3 billion year-over-year, with all three categories—finance, operation, and investments—showing profit growth compared to the same period last year. Particularly strong growth in investments helped us achieve this pretax profit increase, even when excluding significant gains from the sale of Greenko shares and valuation gains on the remaining stake. Third, concerning shareholder returns, we announced an expansion of our share buyback program from JPY 100 billion to JPY 150 billion, completing buybacks amounting to JPY 128.1 billion by the end of January with an 85% progress rate. We will continue to make consistent progress towards completing our full share buyback program. Now, turning to page 3, I will explain the pretax profits for each of the three categories. This page presents our cumulative results chart for Finance, Operation, and Investments for both the current and previous fiscal years. Firstly, in the Finance category, segment profits rose by 8% year-over-year to JPY 145.5 billion, achieving 81% of the full-year forecast. ORIX Life reported growth in investment income, and we were able to enhance finance revenues in Australia and Asia, excluding Greater China. Next, in the Operations category, segment profit grew by 17% to JPY 189.5 billion versus the same time last year, reaching a progress rate of 79% against the full-year forecast. Gains from the partial sale of shares in Canara Robeco during its IPO, along with improvements in airport concessions and real estate operations, contributed to this success. The Auto segment also performed well, benefitting from a strong used car market, and the Ships business saw favorable earnings through asset efficiency and synergies with Santoku Shipbuilding. In the Investments segment, profits surged by 100% compared to the previous year, totaling JPY 261.4 billion—significantly boosted by gains on the sales of Greenko and Ormat geothermal power business. In real estate, we sold various properties, including Hotel Universal Port VITA and office buildings, significantly contributing to increased profits. Overall, segment profits for the nine-month period grew by 40% year-over-year to JPY 596.4 billion, with pretax profits increasing by 48% year-over-year to JPY 567.7 billion. The difference of JPY 28.7 billion between total segment profits and pretax profits is attributed to administrative expenses and other costs. The strong profit growth across finance, operations, and investments was integral to our performance in the third quarter. For the fiscal year ending March 2026, we plan to leverage our successes to foster sustainable growth and improve capital efficiency. We do not anticipate changes to our full-year net income forecast at this stage. Now please turn to page 4, which outlines ORIX’s capital recycling progress. The top section illustrates sales, while the lower section displays new investments. Over the nine-month period, we recorded JPY 196.6 billion in capital gains, with cash inflows from divestments reaching JPY 790 billion and cash outflows from new investments totaling JPY 700 billion. We are actively pursuing new investments domestically and internationally, focusing on operations and investments. A notable investment in operations was the acquisition of Hilco Global, a leading asset valuation company. We’ve also expanded our aircraft investments, capitalizing on robust demand. In the Investments category, we made a private equity investment in LULUARQ, the provider of capsule toy specialty sources, and executed a tender offer for I-NET, enhancing our position in AI infrastructure and DX-related business fields. Additionally, we invested in AM Green convertible bonds and logistics facilities, and we announced the establishment of a PE fund with the Qatar Investment Authority last November, which will support our future investment deals. Moving on to pages 5 and 6, we summarize segment profits and assets. On January 1, 2026, we announced organizational reforms to simplify our segments into three business divisions, but for the current fiscal year, we are continuing to manage our business using the existing ten-segment framework. For the Corporate Financial Services and Maintenance Leasing segments, cumulative profits rose by JPY 14 billion, up 21% year-over-year, to JPY 80.2 billion, thanks to increased fee income from various activities, including operating lease investments and the strong used car sales in the Automobile unit. In the Real Estate segment, profits for the nine months were JPY 56.9 billion, driven by revenues from hotel operations but facing a year-over-year decline due to the absence of last year's large-scale gains. The Daikyo unit, however, saw profit increase through rentals and sales of condos. The PE Investment and Concession segment profit increased by JPY 27.8 billion or 42% year-over-year to JPY 94 billion, benefitting from strong performance in domestic PE investments like Toshiba. The Concession unit also performed well, aided by rising passenger numbers at Kansai International Airport. The Environment Energy segment saw profits rise to JPY 102.2 billion, mainly from gains on Greenko and Zeeklite sales. The Insurance segment's profit climbed to JPY 74.1 billion, boosted by investment funds. In the Banking and Credit segment, profits decreased slightly to JPY 19.9 billion due to rising funding costs. Meanwhile, Aircraft and Ship segment profits rose to JPY 48.6 billion, buoyed by improved lease rates and aircraft sales. The ORIX USA segment reported profits of JPY 14 billion, although year-on-year profits declined due to prior reversals of credit costs. Segment assets increased substantially, highlighting our commitment to portfolio improvement and rigorous risk management. Lastly, profit in ORIX Europe increased to JPY 47.3 billion, bolstered by the sale of shares in Canara Robeco. The Asia and Australia segment saw profits increase to JPY 39.3 billion, driven by improved earnings in APAC regions outside Greater China. In summary, despite facing challenges, ORIX has shown resilience in its inbound tourism and operations. We continuously monitor trends in tourism and adjust our strategies accordingly, aiming for sustainable growth while prudently managing investments moving forward. Thank you for your attention.
I believe Kansai is now entering a period of significant change. Kansai refers to a region in Western Japan centered around Osaka, Kyoto, and Kobe. We know that there is great expectation. So during the World Expo, many dignitaries are participating from around the world, we were able to show the world that Tokyo isn't the only global city in Japan; Osaka is also a global city. We want to be very active in Asia as a result. And I hope that the people understand what we're trying to do. Thank you very much for viewing the video. Please turn to the presentation material and turn to Page 8. This is our financial strategy, consolidated balance sheet. Financial breakdown is shown on the left and key indicators on the right. Total assets increased by JPY 1.2594 trillion compared to the end of last year. Excluding the FX effect, there was an increase of JPY 800 billion. The largest factor was the consolidation of Hilco Global. We have a PE investment and also assets increasing in insurance and banking. For insurance and banking, self-funding is also possible. Long-term debt, short-term debt, and deposits increased by JPY 363.4 billion, mainly due to the growth in deposits in ORIX Bank and the new bond issuance. We will continue to diversify funding sources and increase the ratio of long-term borrowings to maintain stable and competitive funding. Insurance contract liabilities and policy reserves decreased by JPY 234.2 billion. This was mainly because of the higher discount rate used to measure insurance contract liabilities, resulting in a reduction of liabilities on the balance sheet. This more than offset an increase of new single premium policy sales. The total shareholders' equity was increased by JPY 495.2 billion, of which JPY 234.2 billion was attributable to the reduction in insurance contract liabilities. The remaining increase primarily reflects the accumulation of retained earnings. Shareholders' equity ratio is 25.3%. The ratio, excluding the deposit, is still at 1.5x. On the right-hand side, the graph shows the employed capital ratio, which remained at around 90% due to capital recycling. By maintaining an appropriate employed capital ratio, we aim to maintain an international credit rating at the A level going forward. Please note that the calculation model has been updated since Q3. There are no changes in terms of risk tolerance or risk-taking policy, but the risk ratios are now defined at more precise business and unit levels than before. While funding costs, including bank deposits, are gradually rising, foreign currency funding costs, mostly in U.S. dollars, continue their downward trend. We strive to reduce capital costs by leveraging our competitive A-level credit ratings and diversified funding capabilities. Please turn to Page 9. Progress in our share buyback program is as indicated in the executive summary. The payout ratio for the full year is 39% of our net income per share. We want to maintain this level. Left bottom, JPY 153 or so per share, this is based on the assumption of net income forecast of JPY 440 billion. We will give further details at the end of the fiscal year. That concludes my presentation. Thank you very much for your kind attention.
Questions and answers
Thank you. We are now ready for the Q&A session. We will now hear from Sato-san at JPMorgan.
Yes, I am Sato from JPMorgan. So I'd like to ask a question about ORIX USA, a little details. However, at the time of financial results announcement this time, I think you have closed ORIX Capital partner, I think you have closed it. So is it related to that, is what I want you to confirm? And Hilco Global, so you have integrated the company under consolidation. And I know that you're going to be revisiting your business plan based on this acquisition. And on Page 24, earnings outlook, for example, as compared to 3 months ago or 6 months ago, it is going to be revised to downside or rather than upside. And also, if there was to be any kind of progress that is made in terms of other businesses.
First of all, the evaluation of OCP showed significant growth in EBITDA within the portfolio of investees. This evaluation gain represents the majority of our results. Additionally, we are working towards exiting those investments sooner rather than later. Regarding Hilco Global, we have implemented a 100-day plan that is currently underway. We are exploring collaboration opportunities with ORIX Group Global and Hilco. On Page 25, you can see Hilco Global's direction towards sectors like automotive parts and components, as well as advisory services. Our aim is to maintain the strengths of Hilco while acquiring new businesses that will yield positive results. Overall, within OCU, including Hilco Global, we are currently developing a business plan that utilizes our balance sheet. We are carefully analyzing the details to rebuild the OCU business and hope to provide an update at the next earnings call. I hope this addresses your question.
Well, in that case, just so that I'll be able to have a better understanding. So what was closed back in January. In the next quarter, irrespective of the size, I understand that there will be a profit that will be generated.
As to your question just now, towards the closing, an evaluation will be conducted. Additional kind of gains on sales are not to be expected because the valuation gain has already been incorporated.
From Morgan Stanley, MUFG Securities, Takemura-san, please.
This is Takemura, Morgan Stanley. I have a question about the overall progress and your view on the progress. The third quarter was closed. In the second quarter, you upgraded the plan, and even against that plan, the progress was quite fast. So compared against the plan, what was better or worse or was stronger or weaker? Can you please share as much as possible? Also, because of the high progress rate, maybe in the fourth quarter, do you expect some downside that will offset this faster progress.
Thank you for your question. In the first 9 months, first of all what is progressing strongly. This is Page 3. I would like to use this page to explain. As I have mentioned, as for investment, this is JPY 261 billion and Greenko JPY 95 billion. In terms of investment efficiency, this is very good. Toshiba noncore business divestiture and also Kioxia post IPO. So these are all captured with 3 months for LP earnings, and this is progressing faster than expected. But we're talking about the semiconductor share prices. So this is not something that we should be commenting on, but the share price level is quite high in our view. As for the operations, as we have explained, Canara Robeco again, this was very smoothly launched. With the remaining share, this is equity based investment. We will continue to move to a situation. But including the emerging markets, we see this kind of business definitely growing. The third point I would like to mention is based on the result of the election, we expect the domestic economy to grow stronger. I talked about inbound, but automotive, lease, IT, and also funding requirement. We believe all of these are moving very solidly. Until we close the fiscal year, we will continue to build up the deals, and we are really hoping that we can do better than the plan in terms of the finance business as well. However, with regard to the first quarter, as I have just explained, for the full year, it seems to be good, but performance for next fiscal year or the next 3 years, we need to verify the outlook and think about the capital efficiency as well as the solidity of the earnings plan. Based on that understanding, we will continue to address the situation. So I'm not talking about specific deals or projects, but we will be evaluating things on a regular basis as appropriate. Right now, I don't have anything specific that I can mention. But we will continue to scrutinize the business plan and share information.
Yes. Just one point of clarification. USA, gain on valuation, was this part of the plan?
Thank you for your question. Ultimately, the company's situation is always looked at in detail. So this is within our expectations, we can say. But investment in ORIX USA and ORIX Capital Partners website, when you look at the website, you know who are investing and the telecom network data center service investees impacted by the AI boom in the U.S. performing very strongly. The EBITDA growth of those companies can be incorporated at fair value, which means that this domain is growing stronger than we had expected. This is one of the factors that was reflected in the performance in the third quarter.
So next, we have from SMBC Nikko Securities, Muraki-san.
I am Muraki from SMBC Nikko Securities. So I may repeat some questions, but towards the fourth quarter in terms of cost incurrence, is there anything that we need to be mindful of? So in posting some of the losses in the past, such as ORIX Bank, ORIX Life. There was some loss on sales of some fixed income products. And also in the United States, a credit cost of JPY 4 billion was generated as well. So there was some credit loss that had incurred as well. So in a more precise manner, I wasn't able to hear you. But with regard to Elawan, with the individual kind of project, I think you said taking cautious and careful steps. I suppose there is a goodwill. Can you carry it over the goodwill for Elawan? I know that there are a lot of technical kind of details, financial technical details, but...
Okay. I would like to answer one by one. First of all, as I have mentioned, in whatever way the cost that may incur, it's not that we are being careless, but such as the public AI or data center has been remaining to be pretty robust, but also tariff-related, trade-related, in fact, remains to be uncertain. Therefore, it's pretty mixed and real estate although the short-term interest rate is coming down, but long term, especially super long-term, interest rates are still rising. The credit cost may be posting dollar interest rates, while it was almost 0, especially the short-term rate, especially the mortgage loan that is increasing. Some credit loss that may incur has been incorporated, and also legacy assets out of the corporate is what I have mentioned is kind of corporate risk. There are certain provisions that may be necessary. This is why every quarter, some fixed income assets that we will be listing them out for seeing some risk that may generate some losses. As for the fourth quarter, I think the same kind of procedures will be undertaken. So from that perspective, with regard to the credit cost for this year, we will not wait until the fourth quarter. At the regular pace, we would continue to revisit the situation so that we will be able to in advance incorporate the losses, if there were to be any. As you have mentioned about Elawan, on an individual project basis, we have been taking very careful and cautious stances. Elawan's goodwill and also at the same time, the project that is in progress, for example, work in process, and we have been incorporating some intangible assets as well. The business progress as compared to our initial plan, especially at the reset of the economy and other factors taken into account, has been some delay; however, we are beginning to see some signs of improvement. Therefore, the plan will be reviewed. This is what we need to do. But if there were to be any kind of aggravation in terms of the P&L, then we will not wait until the very end, but rather review the project itself. So Elawan at the center on a mid-term business plan perspective by project; we are scrutinizing each and every project and also reflecting the result of the assessment. In light of all the individual assets, we would like to take necessary measures so that there will be no carryover of any kind of negative legacies onto the next term. As has been mentioned, this year as well as the last as a result of yen's interest rate rising, if there were any loss incurring from the bond of fixed income assets, we are incorporating some of the foreseeable losses by the third quarter. In terms of the amount, it is not that sizable, to be honest. We would not have unrealized loss, not a huge amount. As a result of some impairment that has been conducted, there should be no further impact that we can foresee. On the other hand, life insurance, it is true that the unrealized loss is enlarging. However, we do kind of match it against the policy kind of assets as well. So in terms of the switchover, order churn has not been happening very much, which means that from an operation perspective, there seems to be no kind of accounting loss that we may have to calculate. We are not prepared to be doing so at this point in time, so I think we still have some leeways. I will not be able to say anything in definitive terms, but that's all I can share at this point in time.
Daiwa Securities, Watanabe-san, please ask your question.
This is Watanabe, Daiwa Securities. I would like this question about Page 8. 92% at the end of September, now 89%. This is improving the employed capital ratio. And you have explained this in your presentation, but what did you change? Did the target level change? In thinking about how to use the excess capital, do you have any updates on the capital strengthening for insurance?
Please refer to Page 8 for the employed capital ratio, which was updated in the third quarter. I would like to provide some additional context. The year-end team reviews the risk dashboard, and we have made enhancements to it. Our portfolio risk management is now more detailed, allowing us to assess risk on a project-by-project basis. We have decomposed what was previously considered a lump sum of risk into individual projects, and the overall risk level has turned out to be lower than we anticipated. Consequently, the employed capital ratio has decreased. The maximum loss from the global financial crisis served as a benchmark, which we have also reassessed. The ratio has dropped from 91% to 81%. While this detailed calculation does not alter our risk appetite, we do have a 10% investment capacity buffer in place. The PE ratio and equity ratio remain quite conservative, which allows ORIX to make flexible investments as long as it doesn't adversely affect our rating. Regarding your second question about the liability for Life assessment, we appreciate your inquiry. On the left side of the table, you will notice the reduction of insurance contract liabilities by JPY 234 billion. This figure reflects a mark-to-market assessment based on long-term bonds. As you may be aware, the issuance of 20-year and 30-year bonds has decreased towards the end of last year, resulting in fewer bonds for reference. Currently, the life insurance company is exploring various parameters, and financial institutions along with accounting auditors are reviewing these details to improve reference data for a more stable evaluation of our assets. The life insurance company is aiming to introduce better indices, and we believe that achieving this would represent an improvement, although discussions are ongoing. The smaller bond issuance and expanding spread have had an impact, prompting us to make some adjustments. I apologize if my response was not entirely clear.
So after the adjustment, if you can just step evaluation, can you utilize the excess capital for shareholder return, for example, growth investment?
Well, the liability assessment evaluation, we don't need to be overly discounted. We have to check that first. Utilization of net assets is not really the focus. We're looking at the parameter whether the parameters are accurate. We wanted to evaluate the accurateness of the parameters.
Next, we have from Mizuho Securities, Sakamaki-san.
I am Sakamaki from Mizuho Securities. I have one question. From the presentation, it seems that capital profit and base profit were not included because there appears to be significant evaluation gains or profits. What is your perspective on this compared to how you previously expressed it?
As to the capital gain versus base profit, we did not incorporate such a page this time, but I think we had some mention of this. Capital gain, in fact, is shown in the capital recycling page. So let me make sure. So JPY 195.6 billion. If you were to subtract that, you would end up seeing how much was generated as the best profit. As a result of this JPY 196.6 billion, therefore, you see this was not to be kind of replicated. Some from the investment community had said that it is quite misleading. This is why, as a result of escalating this to the Board, we have decided to disclose on a fee category basis and Canara Robeco's gain on sales, for example. Capital gain business of finance could be a possibility as well. It's not that we have decided to refrain from disclosing what we used to. But as for the base profit, for sure, it is steadily growing. Therefore, we just wanted to prioritize this closure based on those 3 categories. The base profit versus capital gain, we do, of course, respond. Should you have any questions and want precise numbers, by all means. Thank you very much.
Nomura Securities, Sasaki-san, please ask your question.
This is Sasaki, Nomura Securities. Just one point of clarification. Performance up to Q3, pretty strong. Credit cost is posted. In the fourth quarter, certain things may happen. As a result, next fiscal year or the next 3 years, how is the plan shared with the management or how is it aligned?
With Takahashi-san as a new CEO, more emphasis was placed on ROE. The biggest point of your question, I believe, is can we invest actively into high-quality deals? This is a focus of our discussion internally. PE investments generating new profit. As Takahashi-san mentioned, this is one of the important strategic pillars. Specifically which domain do we want to promote this? This is the most imminent discussion. Once we have the results for FY '27 March and '28 March, we should be able to aim for continuous growth in profit. Divestitures will also happen, and a turnover will occur during this time period, and we may have some new capital. JPY 150 billion of share buyback. We added JPY 50 billion. JPY 150 billion is not the baseline going forward. We increased from JPY 50 billion to JPY 100 billion at the beginning of the year. We want to be flexible in considering shareholder returns. This is something that we're discussing for the short term. For JPY 100 billion of performance, as we stated during the adjustment, this is the highest in accord, and it reflects the major sales like some other entities. For next fiscal year and beyond, we have to check again. But our watermark has also increased. We will not just look at that. We will also think about high capital efficiency investments. I don't think I'm answering your question very directly, but I hope that's okay.
This time, it seems you experienced some evaluation gains and capital gains in both Asia and North America. Regarding your private equity investees in the U.S. and China, you have expressed a cautious approach in scrutinizing these investees, which is why you did not revise your earnings upward. Why do you feel the need to remain cautious? Despite the capital and evaluation gains, was your outlook incorrect? Were you expecting to incur losses from any of your investments or investees? That's my first question. I anticipate that the fourth quarter will continue an upward trend, though it may need to be reassessed. Your outlook was somewhat off, but the performance of your private equity investee in the U.S. has been quite strong. Additionally, the emergence of Elawan is a positive sign encouraging you to stay optimistic.
I hope to address your question as you intended. In both China and the United States, we have seen capital gains and evaluation gains stemming from individual assessments we have conducted. The risk appetite and future direction I previously mentioned, regarding the P&L, have been highlighted by Tsujino. There may be slight differences in nuance compared to past discussions, which I acknowledge. Particularly, the U.S. investee in technology is expanding based on fair value assessments tied to individual P&L. Additionally, in North America, we are in the process of reducing our position. We anticipate that these evaluation gains will translate into actual sales gains. While we have observed some evaluation gains in Asia, these are largely due to accounting technicalities and represent a recovery from the bottom in some cases. Therefore, individual circumstances vary. In terms of risk appetite for investments, we remain somewhat conservative and are cautious about making aggressive investments. However, strategic efforts may unfortunately start to dilute over time. As we approach the fourth quarter, we are closely examining each business line. We are taking similar measures for Elawan and real estate to ensure we can act in a timely manner based on changes in the business environment and external factors. If we do not foresee an immediate recovery in certain areas, we are prioritizing proactive actions rather than waiting until the last moment. From this viewpoint, we could experience further evaluation gains or losses, with Elawan being one example. Regarding real estate, preparations are underway for procurement and related matters. We have not yet had the opportunity to detail these developments to the investment community, but we expect to make progress in the future.
If I could ask a question about Robeco's AUM on a quarter-on-quarter basis, it is increasing quite significantly. What is the backdrop? It is increasing by 18%. Can you explain anything about it?
Page 27, yes, we have shown. So the Robeco, the asset management fee is under pressure, but the AUM is what we feel the need to kind of increase on a 2-dimensional basis, but at the same time, we are trying to enhance profitability as well. Relatively speaking, we did manage to win the mandate for a quite sizable fund or deal. That, in fact, was reflected. The equity market remains strong; on the other hand, the fee income competition, especially in advisory as well as index, it needs to be tough. Therefore, we would like to remain competitive and centered around Robeco, in proceeding with this business. AUM is true that it's growing significantly, but we hope to generate growing profit out of this growth of AUM as well as AUA.
Before we exceed the scheduled time, this will be the last question. Please go ahead and ask your question.
This is Niwa speaking. Follow up question to what Tsujino-san asked. My question is management resource allocation and also appetite for Japan. Real estate was covered broadly. In Japan, what are the better areas that you would like to focus on? Is there a sign for improvement in terms of demand for financing? 17 strategic domains have been identified by the central government. Are there some of them in line with the business that ORIX is trying to do?
We are observing an increase in interest rates, particularly in the domestic market related to new economy sectors such as real estate, mid-market private equity, and manufacturing. This trend is strengthening demand for lease and CapEx investments. For instance, while the rise in auto lease costs faced initial resistance, recent negotiations have become smoother, and we are seeing improved retention rates. In Japan, businesses tied to tangible assets appear promising based on financial capacity. Regarding our strategic focus, we are not considering direct involvement in ship loading, and we have not committed to any of the 17 identified areas. However, we believe the intermediary business will experience growth, as indicated by a recent release. We are optimistic that we can identify valuable opportunities within adjacent areas related to the 17 pillars set by the central government. Additionally, following the recent election, we see a clear outcome in the governmental budget and financing, allowing us to anticipate which private sectors might become more active, and we will aim to capitalize on those opportunities. While discussions about the budget are still ongoing, we will continue to monitor developments and listen to our customers to meet their financing needs. We have high expectations as we develop our business plan for next year.
Another related question. Overseas business domestic ratio compared to what you had in the midterm plan, maybe the ratio of domestic business is going to be bigger? Is that true or not?
The domestic market is not expected to improve dramatically. For overseas, when you look at aircraft, for example, in aircraft, ships and Asia, we were controlling risk taking. We believe that there is a good expectation there. In terms of the overseas versus domestic ratio, my impression is that this is not going to change largely, but hopefully, we can provide more information in May.
We would like to close the Q&A session. Lastly, we would like to ask Yamamoto-san to close.
Thank you very much. The third quarter remains strong. Thank you for your support. Just as I had explained, we will be revisiting the business plan. From Takahashi-san, CEO, we hope to share our plan going forward at the time of the earnings call at the end of the fiscal period. After working hard at the fourth-quarter businesses, we will then continue to seek your understanding as well as your support. With this, I would like to bring the third-quarter earnings call to a close. Thank you very much for your participation.