管理層發言
So we now would like to get started. Thank you for joining this telephone conference of ORIX Corporation for first quarter financial results for the 3-month period ended June 30, 2025. I am Nakane from IR. We have today as an attendee Kazuki Yamamoto, Operating Officer in charge of Investor Relations. Yamamoto-san will explain, and this will be followed by Q&A. We plan to have a 1-hour session. So over to you, Yamamoto-san.
Thank you for attending the ORIX Group's earnings call today. I'm Kazuki Yamamoto. I'll briefly go over the financial results for the first quarter of the fiscal year ending March 2026. On Page 2, you'll find the key points I want to discuss. Firstly, net income and return on equity (ROE). For the first quarter, net income was JPY 107.3 billion, which is an increase of JPY 20.6 billion compared to the previous year, resulting in an annualized ROE of 10.4%. Against the annual forecast of JPY 380 billion, this reflects a 28.2% progress rate. As mentioned in July, we anticipate recording gains from the sale of Greenko and ORIX Asset Management and Loan Services Corporation in the second quarter, and earnings are looking positive. However, given increasing macroeconomic uncertainty, we need to carefully examine our planned exits in the second half and performance in line with market conditions. Although we expect earnings to be more pronounced in the second half, we are currently reassessing our full-year net income target. Moving on to pretax profit and capital recycling, pretax profit reached JPY 455.5 billion, which is an increase of JPY 35.3 billion from last year. Profit growth was seen across all three categories: finance, operations, and investments. Notably, gains from the Hotel Universal Port Vita and valuation increases from listed stocks led to a total capital gain of JPY 45.1 billion from multiple exit gains. Next, regarding shareholder returns, by the end of July, we had completed JPY 40.9 billion of a total JPY 100 billion share buyback program announced in May. We will continue to repurchase shares under the existing program and aim to implement our shareholder return policy flexibly based on our full-year outlook and progress in new investments. Like last fiscal year, we expect to set the interim dividend per share at a payout ratio of 39% of first half net income. On the next page, for Q1, ORIX reported net income of JPY 107.3 billion, which is a 24% increase, with an annualized ROE of 10.4%. Given the anticipated investment gains in Q2, our outlook for the first half is very strong. Turning to Page 4, I'll break down pretax profits for each category: finance, operations, and investments. The first quarter results compared to the previous fiscal year show that in finance the profit increased by 5% year-on-year to JPY 49 billion, achieving a 27% progress rate against the full-year forecast. The Corporate Financial Services and Banking segments performed well. ORIX Life's investment income grew, and finance revenues rose in Australia and Singapore. In operations, profits also rose by 5% year-on-year to JPY 55.8 billion, with a 24% progress rate against the full-year forecast. The Environment and Energy segment benefited from the sale of ZiekLight, resulting in increased electricity sales revenue. Additionally, the Kinokawa energy storage plant, one of Japan's largest, began operations in December, contributing positively. Rentec saw growth in equipment rental income, driven by demand for Windows PCs, while airport concessions also benefited from rising international passenger numbers. In investments, profits rose significantly by 61% year-on-year to JPY 60.1 billion, boosted by the sale of Hotel Universal Port Vita and valuation gains from our stake in NICE and renewable energy company Ormat. Overall, total segment profit in Q1 increased by 20% year-over-year to JPY 164.9 billion, with pretax profit up by 29% to JPY 155.5 billion. The JPY 9.4 billion difference between total segment profit and pretax profit is attributed to administrative expenses. On Page 5, I'll talk about ROE and shareholders' equity for the three categories. The dark blue bar represents finance ROE, which improved from 8.2% at the previous fiscal year’s end to 8.7%, up 0.5%. We are now disclosing the amount of allocated capital by category starting this fiscal year. For finance, the allocated capital is JPY 1.7 trillion. The light blue circle indicates that with the Zieklight sale, ROE in operations improved from 13.5% to 14%, also up 0.5%. The red investment category saw ROE rise from 7.4% to 10.3%, thanks to the hotel sale, with allocated capital at JPY 1.7 trillion. Overall, the total allocated capital stands at JPY 4.5 trillion, slightly higher than the shareholder equity of JPY 4.1 trillion on this consolidated statement, due to management accounting differences. Next, on Page 6, we review ROA and asset sizes across the three categories. Finance and operations remained stable, while investment ROA improved in Q1. Pages 7 and 8 present a detailed matrix of the three categories and the capital recycling progress, showing a capital gain of JPY 45.1 billion, with cash inflows from sales totaling JPY 130 billion and cash outflows from new investments at JPY 150 billion. Major first-quarter investments included PE investment in capsule toy operator LULUARQ and aircraft acquisitions, alongside announcements regarding the sale of our stake in Greenko and new investments in AM Green, as well as the sale of ORIX Asset Management and Loan Services Corporation. We aim to finalize the Hilco Global transaction by the end of September 25. On Page 9, we will discuss the Greenko share transfer and our investment in AM Green. We sold a 17.5% stake in Greenko, a major Indian renewable energy firm, to AM Green Power, realized sale proceeds of USD 1.282 billion, and recognized a JPY 93.4 billion gain from this sale. We plan to retain our remaining 2.5% stake in Greenko for now. AM Green aims to manufacture 5 million tonnes of green ammonia annually and is progressing on green hydrogen and ammonia projects, having established agreements with Uniper SE and Yara Green for European supply. We have also invested $331 million in convertible notes issued by AM Green Luxembourg, the parent company of AMG, as part of our strategy for portfolio optimization and capital recycling in the evolving renewable energy sector. Now on to Page 10, our investment in Hilco Global. ORIX has agreed to acquire a 71.4% stake in Hilco Global, a leading asset valuation company, and we are progressing according to the transfer agreement with a target completion by the end of September. Hilco Global has expanded its services in asset valuation, asset-based lending, and liquidation since its founding in 1987. This acquisition will allow ORIX USA to leverage Hilco's capabilities to enhance its asset-based lending and asset management businesses. Please move to the next page. Our investment pipeline totals JPY 2 trillion, focusing heavily on operational investments. We aim for sustainable growth by investing in projects that yield immediate revenue and those requiring longer development periods. Moving to Page 12, we note growth in the concession business, especially at Kansai International Airport, driven by increased international passenger numbers. The airport’s performance reflects a three-month lag in our consolidated results, so Q1 outcomes reflect activity from January to March. With the upcoming EXPO 2025 Osaka and new international flights at Kobe Airport, we expect ongoing earnings growth. Hotel revenue per available room has been improving, with new hotel openings stimulating demand. However, rising inflation and construction costs will necessitate cautious investment decisions as we pursue sustainable growth. In the aircraft and ship segments, performance is strong, with a predicted rise in passenger traffic enhancing results for this fiscal year. Pages 13 and 14 summarize the segment details, with further specifics available from Page 18 onward. Now, I’ll report on the corporate financial services and maintenance leasing. Segment profit rose by JPY 3.8 billion, or 19%, to JPY 23.6 billion, driven by increased fee revenues in Corporate Financial Services and record profits in the auto unit. Rentec benefited from higher demand for ICT equipment rentals and grew its profit. Segment assets were JPY 1.87 trillion, decreasing by JPY 14.6 billion due to the sale of ORIX Asset Management and ORIX Services Corporation. In the real estate segment, profits surged by JPY 21.9 billion, a 157% increase to JPY 35.9 billion, primarily due to the sale of Hotel Universal Port Vita and higher earnings from facility operations. The segment's asset levels remained stable compared to the previous fiscal year. For the PE Investment and concession segment, profits dipped by JPY 8 billion year-on-year to JPY 24 billion, with investment unit profits down from last year’s gains. However, existing FSTs like DHC and Toshiba performed well, excluding the earlier mentioned impacts. The concession unit at Kansai Airport saw slight profit decreases due to seasonal factors. The Environment and Energy segment reported a profit increase of JPY 18.4 billion year-on-year to JPY 17.9 billion, thanks to the Zieklite share sale and improved revenues from retail electricity sales. The Kinokawa Energy storage plant's launch also contributed positively. Insurance segment profits grew by JPY 2.1 billion, or 10%, to JPY 24 billion, attributed to increased investment income and improved quarter-on-quarter performance, despite sales losses related to portfolio reallocation. June marked the beginning of strong sales for our revised insurance income protection offerings. The asset level in this segment rose to JPY 3.177 trillion. In the banking and credit segment, profits increased by JPY 3.5 billion, or 51%, to JPY 9.9 billion, influenced by rising interest rates improving investment yields. For Q1, profits grew due to one-off factors, with assets climbing to JPY 3.2165 trillion. In July, ORIX declared a JPY 30 billion dividend to improve segment ROE. In the Aircraft and Ships segment, profits fell by JPY 1.9 billion, or 16%, to JPY 9.9 billion. Despite lower aircraft profits, the outlook remains positive with a growing owned fleet amid high lease rates. Profits at Avolon rose, bolstered by contributions from Castlelake. Credit ratings for ORIX improved, as Moody's and Fitch upgraded our rating and S&P revised its outlook positively. The ship segment saw profit declining due to lower income from ship financing and market factors, although tariff impacts were minimal. For ORIX USA, profits decreased by JPY 11.2 billion year-on-year to JPY 600 million. Forecasts show earnings concentrated in the first half, aligning with expectations. Profit declines in the private credit and real estate sectors were due to an absence of previous year gains and impairment losses related to tariff impacts with China. Segment assets dropped by JPY 5.7 billion to JPY 1.52 trillion, with a negative impact from foreign exchange but slight asset increases in U.S. dollar terms. For ORIX Europe, segment profits fell by JPY 1.2 billion, or 11%, to JPY 9.9 billion, primarily due to past performance fees. Nonetheless, net inflows continue, pushing AUM to a record high. Lastly, the Asia and Australia segment saw profits rise by JPY 100 million to JPY 9 billion, driven by leasing revenue growth in Australia and Singapore, despite lower income from Greater China. This concludes the segment overview. Please move to Page 15. Regarding shareholder returns, as previously mentioned, we have acquired JPY 40.9 billion of the JPY 100 billion buyback program announced in May. The current dividend policy maintains a payout ratio of 39% of first half net profit. We are optimistic about gains from Greenko sales and new investments in the second quarter, with our full-year earnings forecast under review. We'll keep you updated on any developments. On Page 16, we focus on ROE and EPS growth and enhancing corporate value. Since initiating our 3-year medium-term plan and long-term vision in May, our management has actively engaged in direct dialogue with institutional investors, both domestically and internationally. We aim to bolster corporate value through increased dialogue opportunities while concentrating on ROE, EPS growth, and capital costs, which remain our essential priorities. That concludes my remarks for the first quarter results. Thank you for your attention.
分析師問答
This is Sato-san from JPMorgan Securities.
This is Sato from JPMorgan. I have one question, mainly in the US-related business. What are your views as to the risk arising from those businesses? The tariff was agreed with U.S. and there was evolution of incentives for renewable energy. So your existing assets or any of your renewable energy businesses, will it impact your strategy? And apart from that, regarding exposure in the U.S., what is your view? And how do you see it?
Thank you for your question. First of all, ORIX US. Let me talk about the business outlook. If you could refer to Page 33, I would like to make additional remarks. ORIX USA, focusing on the middle market, provides finance solutions and mortgage business for real estate and also PE investments. Right now, with inflation and Trump's tariff, interest rates are high. So especially when it comes to real estate mortgage finance and investment in operations businesses, the environment is against it, and segment profit is JPY 14 million per operation. So we have been rather conservative. So we're in the red. As was mentioned in a minority investment, due to tariffs we have been recognizing impairment for some of them. We will be conservative and try to reduce the level of our assets. For real estate, the high-interest rate is continuing more than we had expected. We have been struggling with origination for investing in properties. We are focusing on asset management. For segment profit, we are now more or less breakeven. Given this environment, whether it will improve or not, it continues to be opaque. The fundamentals in the U.S., we don't consider this to be bad, but for ORIX USA business, to a certain extent, we need to take into consideration the possible capital recycling. Meanwhile, the credit business has been quite solid. Average loan structured finance and infrastructure finance in these areas have achieved solid results. Having said that, using the balance sheet for some of the businesses, we will have to minimize the risk as much as possible. Also, we would like to drive our asset management. We will pursue a hybrid model between our own equity and third-party funds. For Hilco Global, this is rather countercyclical. It's very strong against the economic cycle in the overall U.S. So we will continue to invest in Hilco Global and shift to more profitable assets. As to your question about the tariff by Trump regarding renewable energy, the direct exposure in the U.S. is quite limited. However, for renewable energy as an infrastructure, price competitiveness is key and the power business itself, whether it has strong connectivity, is critical. Also, there may be tax system changes. But globally, the winning path in renewable energy, how to be in a better position, we need to be very flexible in working on our assets. That is why we decided to sell Greenko and reinvest in AM Green. Also for Avolon, we have been driving forward. For the policy of renewable energy business overall, we will not change because of Trump's tariff. That was all.
Next, SMBC Nikko Securities.
I'm from Nikko. This is Page 8, capital recycling and capital profit and loss outlook. I would like to ask a question about that. First quarter of JPY 45 billion profit and Greenko will be reflected. So you've mentioned, JPY 140 billion seems to be the number. It seems that you'll be able to reach the full year plan, since that you will consider observations. In terms of the capital loss, what is your outlook? So in the fourth quarter, for instance, a long-term impairment or the goodwill impairment or the credit loss, CCL losses will be accumulated and ORIX Life. In terms of the unrealized loss, it is over JPY 600 billion for the bond portfolio. So teasing is one profit and being able to improve the profit for the next fiscal year. How are your discussions going forward in terms of the portfolio realignment?
So as I mentioned on the right-hand side on Page 8, against the full year forecast, this is the same as we have announced in our budget. So currently, it's under review. That's the reason we are saying this is under review. As you have pointed out, this JPY 41.5 billion in the first quarter, the Greenko gains are about JPY 93 billion. If you'd add that, the full year capital gain budget, including exit strategy, by project by project, we are reviewing the outcome. In terms of the capital loss in the last fiscal year in the fourth quarter, so in terms of the Somahibiki plant, there has been some partial impairment. In the U.S., individual impairment and the credit loss impairment has occurred. As you have made a question for CCL, until the previous year, there have been some reversals, but they have stopped. From this fiscal year and onwards, we are trying to review what will be the right level of reserves. But basically, we think that the outlook is more or less conservative. This will be some of the things that we want to reflect for the full year outlook. In terms of the ORIX Life bond portfolio impaired under unrealized loss, it has improved compared to last fiscal year, but this is linked to the liabilities. In terms of the actual performance against the real business, as long as the large surrenders and cancellations, that is the standard, like a portfolio management conducted by life insurances. But ORIX Life, the long-term lump sum payment type of insurance, the surrender risk having that type of risk is limited because we basically offer medical protection type of insurance. So in terms of the nature of the insurance, I think they can absorb the risk. However, that said, in terms of the asset value and going forward, our valuation, if there is something that will have a negative influence in the next fiscal year and onwards, we will address that. But currently, in terms of capital loss, there are no major considerations. They are currently being discussed. Has this answered your question?
So if that is the case, in terms of the direction on a net basis, the Greenko JPY 93.4 billion of the Greenko shares will come in, so for the delaying some sales or even if there's some capital as well, will come up. But in terms of the direction, you are looking in kind of upward trajectory.
As you have mentioned, in terms of each of the exit deals of projects, we have assumed higher quality investors at the interest rate environment. We have to individually view with the top management of each of the segments and are considering these types of factors. We are waiting for a review, and we want to communicate that as quickly as possible.
Moving on from Daiwa Securities, Watanabe-san.
This is Watanabe from Daiwa Securities. Regarding capital recycling, I would like to ask you regarding Acentic-TOB period did not extend and Panasonic projector business was gained in a short period of time. What's the investment discipline? Were there any changes in your approach? And also JPY 30 billion dividend you will be carrying out. So why at this timing are you going to carry out the dividend payout?
Well, thank you very much for your question. Regarding the Panasonic Connect projector business, I would like to explain why the agreement was released. We were supposed to sign an agreement with the Panasonic Group, and we had prepared accordingly. As was announced, both parties had worked together, and that's a fact. Meanwhile, due to tariff impacts and economic situations, the outlook of this business was revisited. Given the strategy on our end and between ourselves, there was a gap between the two companies regarding the expectation of the future business. We quickly consulted with each other. Based on the agreement, we decided to release the agreement and terminate the discussion. It's not that we were not able to reach an agreement; rather, based on the rationale discussion, we discussed and agreed that we would not be making investment. Within a certain risk tolerance, we evaluated whether the initial business plan was feasible. In light of that, we made a decision. For Sentec, the TOB did not achieve the number we had expected. Thereafter, the price compared to our TOB price has been faring higher. It seems like meanwhile, Acentic's management team, we had discussions many times about whether there is business synergy or room for collaboration to improve corporate value. We have a relationship to continue holding these discussions going forward. The period has not been extended, and the prices were not revisited. As you said, regarding investment discipline, we will not change our investment discipline just because we want to purchase. Due to the decisions made by the business side, we decided not to extend or revisit the price. In terms of timing, Sentec announced this morning, and the market situation impacted every TOB. I'm sure certain accommodations will be necessary going forward. But we always take time to make a final investment decision. We consider factors within our defined ratio of investment. For the dividend payout, this was announced because we have been stacking up profit. Revenue has been growing, especially in three categories. In terms of profitability, ORIX Bank compared to peers has maintained decent profitability. Assets have grown to a certain level, and there is a distribution. To grow profitability higher, we decided to return capital to a certain extent. On a stand-alone basis, at this point in time, ORIX Bank's financial soundness has no issue whatsoever. Upon that basis, we decided to carry out the dividend. Going forward, for each group company and business segment, we need to contribute to a higher ROE for the group, so we will be mindful of ROE.
Mizuho Securities, Sakamaki-san, please.
This is Sakamaki from Mizuho Securities. I have one question regarding shareholder returns. You mentioned having good progress in your profit process related to the sales of Greenko and that there is more flexibility for share buybacks in this year's plan. What internal discussions have taken place about the shareholder return policy?
Thank you very much for your question. The Board of Directors has conducted discussions on today's Q1 financial results based on that, in terms of discussions have been conducted. I think basically, the discussions will, of course, on the forecast going forward and outlook. I think in terms of the market environment being solid in Japan, we are discerning how much impact the Trump tariff will have. Each corporation is trying to discern that. The second point is, in the United States and China, what type of business outlook should we establish as an ORIX group? In terms of the shareholder policy to make a decision regarding these materials, we will have to look more deeply and then decide on our policy. That is the reason we are saying that it is under review. But this fiscal year in May, we said that we have JPY 100 billion in the buyback program. This will be quite flexible. In terms of the investment pipeline for the Panasonic company, we have terminated that agreement. With Greenko's sales, we have invested in green. Sincе we reached an agreement for Hilco M&A, I think we have some visibility for major projects. Considering investment and payback, if we look at our capacity and if the capital market shows it is good timing for share buybacks, we will make that decision after conducting discussions.
Next, BofA Securities, Tsujino-san, please.
About the return to shareholders, I have a question. First of all, in the first half dividend, how are you going to decide? 39% is the annual. The profit seems to be skewing towards the first half. What are your thoughts? Additionally, regarding the additional buyback, you talked about two major deals as well, but 70% of the sale was completed or agreed to. You might be considering what to do with Avalon. Perhaps you were thinking about this from about two years ago, and this discussion may progress or maybe you will look for a good third-party, demonstrating your leadership, but the investment size will be quite significant. Taking all this into consideration, thinking about the future, you may have to think about buybacks. So I was wondering if this would turn out to be one of those options.
Regarding the interim dividend, to start with, as you know well, last year against the first half result, the payout ratio was 39%, and that was our return. As I mentioned earlier, for this fiscal year, Greenko import should skew the results towards the first half. Nevertheless, will it be 39%? When we announce interim financial closings, the Board of Directors will decide eventually. Our idea toward this dividend is what is fair and a commitment towards the commitment of 39% against the result. As long as we don't have any negative factors in the second half, it will be across the board of 39% annually. That is how we've updated. For additional buyback, as you mentioned, Avolon's 70%, the Hohai shareholder of 70% and CECO were both at 70%. Among our overall capital policy, these are important factors. Apart from the current pipeline, we have some other potentials, and we are looking into this very deeply. On the market, of course, being mindful of capital costs is quite important as we manage our business. With Takahashi-san, we have been holding discussions with the investors in the EU and U.S. Instead of stacking up capital based on uncertainties, we should be solid. Considering the financial state of ORIX, our capacity is sufficiently maintained. If the return becomes a bottleneck in investment, we will definitely avoid that happening.
Next one, Nomura Securities, Sasaki-san, please.
This is Sasaki from Nomura Securities. So I want to ask about the base profit. I think it's the latter half of the presentation material, where the first quarter base profit increased. Where was it coming from? If possible, can you talk about that? And from the second quarter onwards, more than JPY 120 billion, is it sustainable, or is it going to further increase? Can you please talk about that? Thank you.
That will be Page 42, I think you're looking at Page 42. As I said at the beginning of the presentation, in terms of talking about the segment profit, in terms of the level of base profit, this is a very solid level for the first quarter. Partially in this, the so-called aside of the recurring base profit, some technical reasons have been booked in the first quarter. There are some of these types of items included. If you compare it year-over-year, it is clear that we've achieved before tax profit of more than JPY 100 billion. This is a significant level we have reached. However, for the first quarter, I will not be able to tell you the exact number. For the bank business, there have been some one-off profits included or in terms of the environment and energy, there are some technical numbers included. That said, up to now, in terms of the momentum from two years ago, we have consistently achieved more than JPY 100 billion of profit from the second quarter onwards. Yes, we will continue to maintain this momentum. Regarding other impacts, performance of the PE investees is quite dispersed and distributed. I do not think that one specific investee will have a negative impact. But each of our investees are conducting unique businesses. We would like to manage these companies very steadily, but they may lead to some fluctuations in the future.
Yamamoto-san, may I ask? So maybe I didn't understand what you have explained. So let me ask again. For this fiscal year's guidance, you said that it's under review. What is the meaning of under review? Simply thinking, last year, you were not able to sell Greenko, and you are not able to achieve your targets. This year, it has been decided. So it may go up. That's the kind of simple thinking I have. Having used the word under review, does it imply that the outlook has become negative, or are you literally just thinking it's under review?
I think what you said lately is what I was thinking. When we disclose our budgets in terms of gains coming from the sales of Greenko, the buyer was reliant on market conditions, so it was a bit difficult to receive. We have to compile that. Each of the segments will manage to do business. We disclosed a budget outlook of JPY 380 billion. From my point of view, the review of our forecast includes the Greenko sales. It is not just adding or subtracting what has changed against our forecast performance for this fiscal year. We want to answer that correctly and solidly. As time allows, compared to initial budgeting, we will see how things transpire from July and onwards. From the top management for each head of the business segments, we have closely communicated about that. We do hope you’ll allow us more time to think about this. It is not that it got better or worse. We are truly looking into the budget so we can say that this is the revised forecast backed by solid reasons. We want to spend time to reach that conclusion.
So we're closing in, but this will be a final question. SBI Securities, Otsuka-san, please.
This is Otsuka from SBI. Can you hear me?
Yes.
Towards the back of the presentation on Page 46, an Asset Management disclosure is given JPY 81 trillion at the end of June. It doesn't say here, but in the previous document, March 2025 towards the left, AM was JPY 74 trillion, I believe it was the number. So within three months, there's been an increase of JPY 7 trillion in this disclosure. I would like to know the background of this increase. Regarding third-party asset management, I think you've talked about enhancing those areas. So now I am interested.
Takahashi-san mentioned this as well. In the mid- to long-term strategy, we would like to grow AUM through asset management; that is our direction. On Page 45, one page before, that's included on this page. At the end of March, the AUM outstanding amount is JPY 81 trillion. It has grown. The primary reason behind this increase is twofold. One is Noverco and other companies; the inflow of cash relatively speaking, towards this quarter. Although this was within our expectation, we were able to take it in. Over the past year, AUM was relatively flat. However, from the previous quarter, the momentum of recovery started to be very clear. This is mainly due to the product lineup and the investors' understanding, leading to inflows. Additionally, U.S. stocks and equities had a good market, leading to inflow and higher valuation of AUM outstanding. First and second quarters have been rising as well. So that was what we refer to. Apart from that, in the U.S. CLO and securitization product arrangement business is underway. This is a credit-related product, which has been quite successful. In the past, as a hybrid model, the balance sheet was being used, but once sold to investors, it will shift to AUM. For CLOs, the outstanding amount is quite significant. This was another contribution. Especially when it comes to the U.S. dollar, in terms of value compared to yen-based, the impact appears to be much bigger. There are other fluctuating factors, but we were able to absorb valuation losses, as well as tariff impacts both in the U.S. and Europe. I hope that I managed to explain the factors behind these numbers. Mark-to-market is another aspect. There's a JPY 21.4 billion inflow, but I think market value is not that high. Stock base, as you say, has an impact from the market.
Well, thank you very much. I am looking forward to the detailed explanation going forward.
So the time has come to end this meeting, we would like to end the Q&A session. So Yamamoto will say some last words.
Thank you very much. In the first quarter, I think physically, we have seen results with regard to Greenko from last fiscal year. People were concerned about the situation, but we have been able to close that deal, and I think it was quite favorable. On the other hand, other investors have asked for the second half; we cannot be too optimistic. For this fiscal year, capital gain is concentrated in the first half. For the full year business itself, I would like to carry out business steadily. In terms of the review and looking into the business environment, we will focus on these activities. Through communicating with you, I would like to clarify any issues. I hope that you will be able to support us going forward. So this like to end the first quarter presentation results. Thank you very much.
For the March 2026 first quarter briefing, I would like to end this meeting. Thank you very much for participating until the end.