Fiscal 2022 was a difficult year to navigate due to the uncertain business environment. During the first half of the year in particular, profits were sharply squeezed due to factors such as the war in Ukraine, China's "zero-Covid policy" and increased labor costs due to inflation in Europe and the United States. We began to see signs of recovery in the second half of the fiscal year due to effective cost-cutting measures and price hikes in response to soaring raw materials and energy prices. However, this was short-lived, and consumer demand in the Asian market declined after the end of the year alongside automotive sales. As a result, business profits fell below the previous fiscal year. On the other hand, there are products that achieved good results through new applications and new materials, and I feel that we are starting to see a recovery in 2023.

Fiscal 2021, the first year of the Medium-term Business Plan, began amid a chaotic social situation due to concerns about the impact of COVID-19. Thanks to a quicker than expected market recovery, we posted results that surpassed our numerical targets. However, negative factors remained unsolved, including automotive production adjustments due to the semiconductor shortage, logistics disruptions, and increases in various costs. Making things worse, amid these trends in fiscal 2022 we were hit hard by automotive production adjustments and a sharp fall in demand in China. As a result, our annual budget and business profits fell short of the targets in our Medium-term Business Plan.

By contrast, efforts to transform our business portfolio for the future have produced solid results, and we recognize this as a key measure. In our aircraft interior components business, we have achieved profitability by consolidating locations at our affiliate Vaupell, strengthening relationships with customers, and streamlining efforts.

In our new Medium-term Business Plan starting from the next fiscal year, we will "lay out our vision for 2030, and work out the next three years for reaching it," then set concrete numerical targets based on this. We will swiftly convert our business portfolio with the aim of achieving a form that emphasizes profit margins.

Also, to expand the scale of our business, we want to focus on creating a workplace culture in which "All members can build relationships of acceptance and trust with one another. And each employee can have autonomy, think for themselves, and act on their own."