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I'd like to begin by expressing my gratitude for your continued support of IBIDEN Co., Ltd. and the IBIDEN Group.

In the Electronics Operation, while generative AI-related demand remains strong at present, demand for electronic products for PCs and general-purpose servers remains weak. However, from the second half of FY 2024 onward, a recovery in investment by hyperscalers as well as further growth in AI-related demand are expected to lead to a recovery in overall demand for high-performance IC package substrates, including those for general-purpose servers. In addition to proceeding with the construction of the Ono Plant as planned, we will also strive to strengthen both our quality capability on a global basis based on our One Factory concept and our on-site capabilities through the cultivation of specialist "TAKUMI" so that we can regain growth once market conditions recover.
In the Ceramics Operation, while we expect a swing back to internal combustion engines from the rapid trend toward electrification in passenger vehicle markets, primarily in developed countries, we also anticipate that the economic slowdown in China will affect the business to some extent. When it comes to our DPF and AFP businesses, we will steadily capture demand for industrial vehicles (such as trucks and construction machinery) in China and emerging markets, which are expected to grow in the medium term. On the other hand, the trend toward electrification in the passenger vehicle market is irreversible in the long term. Therefore, for permanent growth in our in-vehicle-related business, we will strengthen sales expansion of safety material for electric vehicle batteries. As for our FGM business, we will expand it by aggressively making capital investments to meet the medium- to long-term growth in demand for FGM for semiconductors, including SiC power semiconductors.

In the Electronics Operation, while generative AI-related demand remains strong at present, demand for electronic products for PCs and general-purpose servers remains weak. However, from the second half of FY 2024 onward, a recovery in investment by hyperscalers as well as further growth in AI-related demand are expected to lead to a recovery in overall demand for high-performance IC package substrates, including those for general-purpose servers. In addition to proceeding with the construction of the Ono Plant as planned, we will also strive to strengthen both our quality capability on a global basis based on our One Factory concept and our on-site capabilities through the cultivation of specialist "TAKUMI" so that we can regain growth once market conditions recover.
In the Ceramics Operation, while we expect a swing back to internal combustion engines from the rapid trend toward electrification in passenger vehicle markets, primarily in developed countries, we also anticipate that the economic slowdown in China will affect the business to some extent. When it comes to our DPF and AFP businesses, we will steadily capture demand for industrial vehicles (such as trucks and construction machinery) in China and emerging markets, which are expected to grow in the medium term. On the other hand, the trend toward electrification in the passenger vehicle market is irreversible in the long term. Therefore, for permanent growth in our in-vehicle-related business, we will strengthen sales expansion of safety material for electric vehicle batteries. As for our FGM business, we will expand it by aggressively making capital investments to meet the medium- to long-term growth in demand for FGM for semiconductors, including SiC power semiconductors.

The IBIDEN Group has started a five-year medium-term management plan, "Moving on to Our New Stage 115 Plan," starting in FY2023. In the new medium-term management plan, we will pursue five main reinforcement activities while accurately responding to changes in the business environment to realize sustainable and stable growth of not only the electronics business but also the ceramics business and other businesses, thereby aiming to achieve net sales of 650 billion yen and operating income of 115 billion yen in FY2027.
In addition, we will pursue human capital management. Specifically, while promoting the development of self-reliant human personnel and flexible organizational management, we will implement well-being initiatives that seek to provide a physically and mentally healthy and socially satisfying work environment, with the aim of realizing the continuous growth of individual employees and strengthening the competitiveness of the company. Furthermore, as part of our ESG management, in addition to promoting carbon neutrality initiatives, we will continue striving to respond to increasingly sophisticated corporate governance requirements.

By steadily addressing these management challenges and risks, the IBIDEN Group will further solidify its earnings base and survive in this age of uncertainty. We will continue our concerted efforts not only to achieve the goals of the new medium-term management plan but also to realize long-term and stable growth.
In this regard, we would like to ask for the continued support of our shareholders for the IBIDEN Group.

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