Piece due to strong sales in Europe and Asia.
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Life Sciences revenue by traditional segment, please see page 24.
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Driven by price adjustment.
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Cost-cutting measures, the impact of U.S. tariff refunds.
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Here are the sales figures.
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Revenue increased in all regions.
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Sales increase in revenue due to higher sales.
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Result: positive impact of foreign exchange rates.
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Due to increased sales volume.
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Due to growth in Diabetes Management in emerging markets and robust sales of diagnostics.
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Adjustments made to operating income adjust to EBITDA.
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Depreciation and price action. Total JPY 6.7 billion.
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EBITDA to adjust to EBITDA: JPY 3.7 billion. Restructuring related expenses of JPY 370 million last year and JPY 140 million this year.
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Including the assets and liabilities under consolidation.
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The balance of goodwill was JPY 240 billion.
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It increased by JPY 1.9 billion.
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The figure decreased by JPY 5.2 billion.
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Primarily due to rise in the market.
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Decreased from 3.2 x. As a result of an increase of adjusted EBITDA.
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Total JPY 14.3 billion.
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Resulted in an outflow of JPY 3.3 billion.
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Including capital expenditure.
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Including capital expenditure. Resulted in an outflow of JPY 10 billion.
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JPY 2.5 billion.
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Thanks for your consideration. We intend to continue making steady progress in these areas.
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Earnings forecast for the fiscal year ending March 2026.
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Full year forecast, including our assumptions about.
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We are significantly exceeded.
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Such as the fact that the demand for equipment and
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As well as the risk of rising prices.
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The risks related to products such as service and PCs.
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The yen has appreciated due to currency fluctuations.
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The yen has declined.
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After earning income.
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The positive impact of exchange rates will diminish.
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Which is the business environment.
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Full year forecast for the time being.
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Foreign exchange gains and losses.
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Improvement on last year's loss of JPY 4.1 billion.
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The position would result in a positive impact of JPY 0.4 billion.
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A negative impact of JPY 40 million for the dollar.
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Based on the sensitivity estimates.
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Including at the current exchange rate.
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That is all for the organization. This concludes my explanation.
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Now we'd like to switch to Q&A session. Joining us as responder is Senior Executive Vice President, COO, CSO.
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If you have questions.
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Mr. Seiji Wakao, please.
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Thank you, I'm Seiji Wakao of JPMorgan.
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Thank you.
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We'll talk to the commission next week about the fiscal year forecast.
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We'll put the agenda maintaining revisions and the higher-standard reasons.
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When you have better visibility of variables.
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The timing of potential revisions, can we consider it will be in the second quarter?
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The forecast in the U.S., or the costs are also one of the variable factors, we understand it. Looking at the progress of OP, I think currently the progress rate is 40% in the full year forecast. Usually considering this future, I think that on a net basis there will be revisions upward. Can we consider that way? Thank you. I'd like to answer to your question. In May we announced the full year forecast, and back then BGM is.
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Expectation. We may potentially.
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I think we need to.
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We will closely monitor the situation.
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We will look into the situation, verifying the situation, what's going on.
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We have to make a decision. At this point in time.
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We cannot make any promises. We are not making a great revision. In the first quarter, we had strong performance.
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In the second quarter.
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The major point is how.
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We need to monitor and verify how the things will be moving on in the quarter two and beyond.
Thank you very much. I understand it very well. My second question is that Diabetes Management performed very well. I have a question. In the first quarter, emerging markets performed very well.
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If I look at my information in Excel, I also thought that performance in Europe was also good, and I couldn't really understand the
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The emerging markets.
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Could you give us more details about the actual of the first quarter? Of course, the momentum in the first quarter, whether or not it will continue in the second quarter. I think Diabetes Management is a big factor for you to look at overall performance. If there are any risks, please also let us know.
Thank you for your question. Sato, would like to answer to your question. The first quarter performance was strong.
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Including Europe and the U.S.
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We could expand the market share. That's the first element. Regarding emerging markets, as Yamaguchi mentioned in Algeria.
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Also in the Middle East, which shows a decline in the previous year. We see the recovery there. These are the contributions from the emerging markets. Also India, Australia, compared to the last year, they are growing. It's a mixed situation. Mainly we have been expanding market share in Europe and the U.S. That's the main contributor. What our promise for the second quarter and beyond, I believe that the first quarter momentum will be able to be more maintained, and we don't expect any major changes.
Regarding the margin, I see progress. Restructuring, I think the future is quite favorable. From the second quarter and beyond, is there any risk factors showing any decline in the margin in Diabetes Management?
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7%. The year-on-year comparison of the first quarter results. About 70% is avoiding increase, but 30% is profitability improvement. That's effective. I believe that they will continue to contribute to the profitability of margin. Thank you. If I supplement a little, in the first quarter we had strong results.
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The numbers.
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It will be more gradual.
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This time margin was 33%. It was very good as a first quarter.
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Decline in those businesses.
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Probably becoming more gradual. Thank you very much. Talking about the phasing.
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The phasing.
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It is difficult to identify how much.
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Mainly in Western countries.
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In the U.S.
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That's producing results in this fiscal year.
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Their inventories. Q1 the adjustments of shipments. They are coordinated.
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Input level was not too high. The sales shipment was also—
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How much? Not to say accurately, but that is overall situation.
Understood. Thank you very much.
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Thank you.
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Tokyo Intelligence, Mr. Masao. The floor is yours.
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Thank you, Tokai Tokyo Intelligence Laboratory. My name is Masao Yoshida. Thank you for the opportunity.
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That BGM is.
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That's a good section.
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Equipment, profit margin.
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I'm talking about BGM.
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That's part of the reason of the risk.
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Profit margin does not change throughout a year.
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That's what we are seeing right now.
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What about the situation there?
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Present some policies, but what about the latest situations?
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This is all I have to say.
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Thank you. These were the questions that I wanted to ask.
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Mr. Ryotaro Hayashi, please.
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Morgan Stanley Securities. Can you hear me okay?
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What are the different points that you saw there were some differences between your plan and the actual?
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That's a good assumption. That has relatively big impact.
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Next, Yamaguchi Hidemaru, it's your turn.
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This is Yamaguchi. Do you hear me? Yes.
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I have two quick questions.
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Are we going to be even stronger than last year?
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