Good afternoon, everyone. Now we'd like to start the earnings call by screen holdings for the first quarter of fiscal year ending in March 2026. Now let me introduce you the presenter for today. First of all, Masato Go to, representative director, member of the board, president, chief executive officer. Yoichi Kondo, director, member of the board, executive vice president, chief financial officer.
And along with CEO and CFO, we have three officers attending this meeting. Banaru Ishimura, managing executive officer Akihiko Miyagawa, senior executive officer, and Shihoh Otobe, executive officer. Now let me invite vice president Kondo to give you the presentation on the outline of the consolidated results and the forecast. Now, mister Kondo, microphone is yours. Now let me give you the outline of the consolidated results for the first quarter for the year ending March 2026.
So we had the increase of the sales and decrease of the profit, And net sales was 3 135,700,000,000.0 yen. That is plus 1.2% q o q. And operating income was 24,300,000,000.0 yen minus 12.2%. And OP margin was 18%. That is minus 2.7 q on q, but they are within our expectations.
And as for the SPE, we had the sales and profits of both fell year on year, but this is within our expected range. In FTE, we saw the significant growth in the sales and the profits. We could make a good start void by the robust FTE market. And on the balance sheet, equity ratio was 64.5% because of the of the asset. And next is the consolidated result.
The sales was the 135,700,000,000.0 yen. Operating income was 24,300,000,000.0 yen and OP margin was 18%, and ordinary income was 24,500,000,000.0 yen and net income, 16,600,000,000.0 yen. And OP income, minus 3.3%, ordinary income, minus 3.3, net income, minus 1,500,000,000.0 yen. And this is the composition of group sales by destination. Japan, 15%.
Taiwan, 29%. China, 34%. South Korea, 5%, Asia and others, 4%, and North America, 9%, Europe, 5%. And this is the composition of group sales by segment. SPE, as usual, occupies the large portion of 80.7%, GA, 9.5%, FTE, 7.4%, PE, 2.3%.
And this is the considered earnings by segment. SPE, 109,500,000,000.0 yen OP income, 25,600,000,000.0 yen and OP merchant, 23.5%. And as you can find on the right side of the box, we had the sales and profits both fell. And the foundry and DRAM sales decreased and decreased ratio of sales to China observed. As a result, against the same time of the previous year, there was a decrease of sales by 2,600,000,000.0 yen and 3,300,000,000.0 yen of OP income decrease.
And next to GA, the sales, 12,900,000,000.0 yen and OP income, 500,000,000.0 yen, will be merchant 4.4%. We saw the sales grow while profits declined. Equipment sales rose, but it was offset by the exchange rate impact. And sales achieved 500,000,000.0 yen of increase, and OP income, 200,000,000.0 declined from the same time of the previous year. Next, Feet, 9,900,000,000.0 yen in sales.
OP income, 1,000,000,000 yen and OPIC merchant, 10.5%. Sales and profits both increased, especially equipment sales grew significantly mainly by the OLED. And net sales increased by 4,700,000,000. OP income increased by 1,300,000,000.0 yen. We could just we now see the recovery.
And next is PE. Net sales, 3,000,000,000 yen. OP income minus 12. So we saw sales and profits both failed, and we expect the recovery of demand for the advanced packaging. So we are still struggling with PE.
So sales decreased by 800,000,000.0 yen, and OP income decreased by 500,000,000.0 yen against the same term the previous year. And next is the financial standing, and this is the balance sheet. So 639,000,000,000 yen is our total asset, and cash and time deposits largely decreased. And tax payment, dividend payment, and share buyback, those caused the last decrease in cash. And, also, we could collect the notes accountable, so that decreased.
And inventory is stable, but we saw flat decrease. And on the liabilities and net asset, we saw some decline in the interest bearing debt. And we had the shrink of the total assets. So now the equity ratio could improve to 60 64.5%. And this is a cash flow.
In the first quarter, operating cash flow remained at 6,900,000,000.0 yen despite the recording of net income due to the payment of income taxes and other factors. So it was 6,900,000,000.0 in the first quarter, and we had the minus investing cash flow and minus free cash flow of 2,700,000,000.0 yen. So we spent 28,900,000,000.0 yen for the financing for the dividend payment and share buyback, and we are not concerned with the current situation. And next is r and d expenses, CapEx, and depreciation amortization. If we don't change the full year expectation, So on occasion of the last earnings call, as we reported for the full year, we are going to spend 38,000,000,000 yen for the r and d and 28,000,000,000 yen for the CapEx and 15,000,000,000 yen for depreciation amortization.
And for the first quarter, we spent JPY 8,500,000,000.0 for the R and D, 4,400,000,000.0 for CapEx and JPY 3,400,000,000.0 for depreciation and amortization. And this is analysis of operating income growth. In the first quarter, against the previous years, same time of the previous year of 27,700,000,000.0 yen, and because of the contribution by the FD and GA, we could have the increase of 2,000,000,000 yen. But profitability Mainly attributable to GA. And fixed cost because of the gross investment such as the increase of the human resource.
We had the minus 4,000,000,000 yen for the fixed cost and also mainly by GA, we had the impact negative impact from exchange rates. And next is the business forecast as this is as we reported. So on occasion of the previous earnings call, we haven't changed the forecast for the full year since then. And so that is we are going to have the full year of 621,000,000,000 in net sales. OP income of 170,000,000,000 yen.
Origin income of 117,000,000,000 yen. SPE, 502,000,000,000 and 121,100,000,000.0 yen and 24.1%. NGA, 53,000,000,000 yen, 2,500,000,000.0 yen of of income, 4.7% of of Immersion. FTE, 45,500,000,000.0 yen, 5,000,000,000 OP income, 11% of the Immersion. NPE, 15,000,000,000 of net sales with OP income of 1,000,000,000 yen of immersion, 6.7%. This is the forecast.
The analysis of operating income growth forecast remains the same. The from 01/2006, the sales and capacity utilization increase and plus eight by FD and GA, and the profitability minus 2,000,000,000. And the fixed cost is minus 19,500,000,000.0. And the r and d and will be promoted and exchange rates minus 5.5, and the ex exchange rates are shown here. And so the negative five gs estimated the exchange rate is remains the same, and we cannot foresee the the trunk's movement.
And then we are going to maintain a 135 for USD and a 150 for EUR. And as per dividend, that remains the same from the initial the forecast. The interim dividend, 123. Year end dividend, 157. Annual dividend will be 280, and we would like to place the dividend payout ratio of the or higher.
That's all from me. And, miss Kondo, thank you very much. Now give the president, CEO, Gozo, is going to explain the business environment and also, mister Gozo, please. Gozo is going to explain about the business environment and outlook. The FY twenty six March full year outlook summary, SVE, the aiming to maintain the solid by thorough capturing opportunities arising from the leading edge investment in foundries and the memories for AI related applications, and that's what was mature in our foundry demands.
As for FD, the panel manufacturers, they have a very robust investment, the appetite, and overnight to capture those opportunities. And as for focusing on building presence in advanced packaging, last year, we launched the wafer cleaning equipment and the PLP called. And the Levena direct imaging system for packaging are, you know, with our sales, so are expected to increase. And as for the forecast of the market is quite severe and but toward the next group, the we will implement steadily the growth investment to prepare for. And SPE business overview.
WFE, we maintain the May forecast. In the calendar year 2025, the market is expected to match the CY 2024 level. As for CY 2026, the in comparison to CY twenty twenty five, we expect the growth. Not that significant growth can be forecast at this point in time, but at least the single digit, lower single digit growth is expected. We are expecting the recovery of the market.
And investment trends by application as for foundry, The continued investment momentum in leading edge nodes, especially for AI related applications. And as for Logic, at the moment, the clients carefully revisiting their investment plans. And as for the investment, we are going to scrutinize those investment to respond to changes. As for memory, the investment for HVM and the d g r five remain solid driven by AI demand. As for NAND investments, they're driven mainly by the need for multilayering.
On the other hand, image devices. The some of the planned investments have been delayed. So in accordance with the delayed plan that we would like to respond And part of our system, others, the weaker investment trends in the industrial and the automotive applications on the back of for the decline in the investment for automotive, but we expect the recovery from CY 2026 onward. Advanced packaging area. Investment in a leading edge nodes for PLP are going to be promoted, and so we are going to strengthen our initiative in this market.
As for Chinese market, existing foundries, customers, and clients, they are expected to continue their investment in WFE. SPE, composition of ex equipment sales by application and the post sales. At the far right bar graph, as you can see, as for foundry, a little bit of decline from the previous quarter in terms of our proportion. But as for the DRAM, quarter to quarter, there is an increasing trend. As for logic, and the flash increased slightly.
And as for the logic increase, the attributable to source to China. And post sales remains stable. So we are going to secure steadily. Next, the SPE segment composition of cells by destination. Quarter to quarter, sales to Taiwan grew slightly.
Year on year basis, sales to Taiwan rose significantly, and their sales to Japan increased slightly. This trend is expected to continue going forward. And next, be composition of sales by application forecast. The by new application and post sales. And the first half for forecast, as you can see here, the logic is struggling.
However, the DRAM, is going to drive significantly. And the, one q one and the q results and the q two estimate, and then DRAM is expected to increase significantly. And if we compare the first half and the second half and the logic, existing customers may struggling, but the logic demand by new customers are emerging so that the increase is incorporated. And SP composition of source by destination forecast. One q result and a '2 q two estimate and the q two that sells to China is expected to increase significantly.
And the first half estimate and the second half estimate, in the second half, sales to Japan, Asia, Oceania, Korea, and North America are expected to increase. And the previous year results and this fiscal year estimate, they sales to Taiwan, Japan, and Asia, the market, we expect the increase. As for GA, the recurring business remains stable. The despite the impact from The US tariff policy, but we aim at improving profitability exceeding the impact. Next step, f t sales trends.
As I explained earlier, the sales void by the recovery of the FVD market. And going forward, OLED, is going to be promoted further. Therefore, the OLED investment will be the growth driver, and we returned to profitability in the previous year for the first time in three years. In the q one, the significant profit improvement has been seen. And so we expect a stable sales and profits going forward.
Next PE. Continuously, the market situation is sluggish. The the associated with the miniaturization circuit board, a full recovery of investment in packaging is expected from the end of the calendar year, the 2025 onward, but the post sales remain solid. And so centering on post sales of all large development business.
And this is a summary of resolutions regarding treasury shares. And today's afternoon, we released this information. So we had the cancellation of treasury shares. And common stock of $6,600,000.0209704 $6.46 shares will be canceled as of August 29. And, also, we have the contribution of additional funds to the performance linked share compensation system and disposal of treasury stock.
And the total acquisition total share of the two b acquired is 415,200 shares, and the cost will be the 5,102,808,000. And the period of acquisition is August 13. And this is the page about ESG initiatives about environment. Based on the TCFD recommendations, we made annual update, and you can find the disclosed information on the home page. And governance and others, the information is now updated on that web page, and so please find them.
And this is the page about the recent screen groups news. So Holdings has been worked on new businesses, and one of them is the MEA systems trial offer, which is capable of simultaneous measuring and recording data. And announce is made in this way, so please find the information. And other topics, you can also find the information of them in our homepage. Thank you very much for the call.
Now we'd like to go into the q and a session. So first, let me invite you, Ruchita Enshida from GLSI Securities. Please unmute yourself. I I'm Yoshida from CLSA. Can you hear me?
Yes. I can hear you. Thank you very much for the opportunity. First of all, I want to know how you think the second quarter of SPE. So by application is is the increase and also is expect the increase of sales from China, especially the DRAM.
So you think that DRAM in China may lead to sales growth? And when you think the first quarter or the first half, are there any change from the one you explained on the previous occasion? So toward the second quarter, what change do you see? What changes by sales by the applications compared to the one that you expected three months ago? So this is called let me ask you a question.
So first, by application, there's no big change in a trend. As you know, in the market, the outlook is very uncertain. So the customers have the plans, but the timing of the commencement of the investment, bit different from what we originally expected. And that may cause some change in the proportion of sales we expect, but the overall situation hasn't changed. So for the second quarter sales, do you expect that to be led by the DRAM in China?
Yes. You can understand in that way. Thank you very much. And my second question is about the w f a w f e in 2026. So you said that you can expect to be a lower single digit figure, and disclose of the lower single digit.
Do you explain it by the application and by the destination? So what level of market growth do you expect for the 2026? So would you elaborate on that expectation for 2026? So it is difficult to come up with a detailed expectation for 2026 by application and by destination as of today. But as a in general, WFE demand in compared to 2025, we expect the stronger demand for 2026.
This is a result of the various surveys and investigations. So what will grow by how much can be seen in a specific way at the end of this fiscal year. But at this moment, it is difficult to talk about the specific details. So I ask for your kind understanding. So you a feeling that you may have the strong demand for now.
And in what area, what application, and what reason to expect the strong demand coming? So on that point, as you know, related to AI applications, demand will grow from now, and so we expect the growth of the relevant equipments. I understand. Thank you very much. That's all from me.
Thank you, mister Yoshida. Goldman Sachs securities, mister Nakamura, please. Thank you very much. Last question. The q one sales and a profit evaluation and the SPE profit margin.
Would like you to elaborate on them. And then the first half for the forecast, the progress seems to be slower, but the the explained that it's on par with the assumption. And so I would like to hear more details and the SPE from the q one to q two. That is expected to increase, but the SPE sales expected to increase significantly, and the sales to China is going to increase. So the the increase should be more, but how do you evaluate?
The q one result, as mister Condo mentioned earlier, the slight saucer the replacement contents, but it's as as same as we had estimated. And there's some more declined and but due to the product mix, there's some increase. And so all in all, the q one period, the source amount is the on par with our assumption in the full year forecast. SP is OP margin. The due to the product mix mainly.
But, basically, we have taken various initiatives to improve the profitability, and then you can see the some of the results from our initiatives. By quarter, there are some fluctuation, but they're all in all, the our initiatives have been producing results. So, generally speaking, profit is on the way of improvement. Thank you very much. I understood.
The second question is about the concept of China business. In the first half and the second half, SPE, the composition sales composition, The second half, the mid 30% is planned. On the other hand, the local semiconductor investment appetite seems to be strong continuously. So in the coming three month in the three month, if you have seen any changes and, also, I would like you to explain the the prospect. And the business for China, the we have been repeatedly mentioned so far.
The for the past two years, the sales to China has become high. And the this fiscal year's forecast was asked several times. What we answered is that the business proportion to China will become stable. And what is the proportion? We answer that this mid 30%, and it has come to that level.
And the at the beginning, the business to China, due to the regulation by The US, the were somewhat limited. But other than the our expectations, business to China were not targeted by the regulation. So from the current situation, the little decrease, but continuously, the mid to higher 30% level would be the proportion of our business to China. One confirmation in the second half, the sales to China, how we look at the sales to China in comparison with the three month ago, there are no big change. Yes. That is correct. Understanding. Thank you very much.
Thank you very much, mister Nakamura. Next step, let me invite mister Shimomoto from Okasan Securities. Thank you very much for this opportunity. I am Shimomoto from Okasan, And I'd like to have your advice on how to see the IWFE in 2025. Are there any growth expectation by application?
So will follow with the figures. This is speaking. In calendar year 2025, by application, refinery, we expect to plus 10%. Logic, minus 20%. And memory, when is the breakdown?
DRAM, 10% plus. NAND plus minus 0%. We have both the negative and positive figures. And for the imaging device and power, minus 5%. These are the expectations we now have.
And how do you see the China market? So the China market China business in WFE, our image is that we may see the slight decrease, so minus single digit. Yes. That's the dimension we have. And follow-up question on that point.
So figures you gave me are almost the same as that of the three month ago. So expectation by application hasn't changed since three month ago. Yes. As was explained by Goto a moment ago, we don't see any big change in the trend. So it was May when we had the previous earnings call.
So less than three months had passed, and there's no big change in the situation or expectation. Thank you. And second question is about the impact of the tariff. There's uncertainty about the appetite by the customers in investor London. And so do you see any change in the sentiment of the customers in the past three months or about the 2026?
You think it's better to have the, very tough view on it? So I think you have the communications with the semiconductor equipment manufacturers, and how do you expect their appetite for the investment? So the as long as we see the impact of tariff by Trump administration doesn't cause any big revision of the investment plan by our customers, and we haven't heard any specific plan of the revision of their plan. Thank you very much. I understand. That's all from me.
Thank you, mister Shimomoto. Next, Nomura Securities, mister Yoshiroka, please. Thank you. I am Yoshiroka from Nomura Securities. Can you hear hear me?
Yes. Thank you. Buy application. Sales buy application. I have a question.
This fiscal year, full year forecast, the buy application, the breakdown has been indicated that none to source, the 26 bar, which is expected to remain same year on year. As for this, the industries, other WFE companies, forecast seems to be different. So as the investment in NAND application, the you haven't seen the investment or the investment will center on the multilayering that you mentioned. And so your cleaning equipment higher the integration that your exposure might be decreasing. Or what is the your expectation for this fiscal year sales in NAND?
The our expectation of NAND, the customers, the investment timing has not been well determined. And so because of this uncertainty, the market memory price forecast is also difficult to foresee. In that sense, the our clients, the NAND memory clients, the in which timing they are going to make an investment for NAND, They haven't officially determined the timing in our understanding. So because of that, we explained in this way. Yeah.
Thank you very much. So the intensity of cleaning equipment has nothing to do with that. I understood. Thank you. The second point, the source by application once again in as for foundry, the of course, I'm not mentioning the customer's name, but the 2 nano investment, the the making the sales contribution this fiscal year.
But including the advanced investment in this fiscal year, I believe that that it has posted in sales toward the next fiscal year, then then the sales have a more potential to increase next fiscal year. The which explain about the forecast for next fiscal year. Two nano advanced packaging, and the mass production hasn't started. It's still pilot stage. And so two nano area will make a contribution to source.
The at the moment, two nano area will not contribute to increase of a volume in cells. Having said that, the mass production for leading gauge, the three nano, the is quite robust. And so there will be a contribution from that. And, also, The US, the device manufacturer for AI, and their China business was defected. Therefore, the market for China will be targeted, and the proportion will be increased for that.
And so the business for foundry are expected to increase to cover that area. Okay. Thank you very much for your answer. I understood.
Thank you very much, mister Yoshioka. Let me invite Hirakawa san from the DA of a securities. My first question is about the profitability. On page 11 and page 13, there's analysis of the profitability and SPE minus, but the FDGAPE will make a contribution to profitability. And I want to know more about the fluctuation of the SPE's profitability.
And related to that, we want to know the profitability of this specific product. There may be some negative figures, what improvement did you see for this fiscal year in terms of the profitability in in terms of the operation. So about operation, the specific amount of the improvement cannot be disclosed. But, of course, as a manufacturer on daily basis, we are trying to improve our profitability and the productivity and reduction of the cost. So the op immersion target, in order to achieve that target, we have some milestones.
And towards them, well, step by step, we are making improvement. So we have the targets so that we can achieve the annual improvement. So we're trying to achieve that improvement in profitability. And so for this fiscal year and next fiscal year, you have the room for the improvement. So, basically, improvement of profitability is a very important thing for us, so we will steadily work on it.
But the result of which, as you mentioned or as you mentioned, we it depends on the product mix and also the situation. But to the as for the basic measures to improve the profitability, we'll continue to carry them out, and impact of them allow us to have the expected results. Thank you very much for your comment. My second question is about to the sales idea about the first and second quarters. So you mentioned about WFE, and president Goethe said that because of uncertainty, there may be some delay in the start for this fiscal year.
So how do you see the first quarter? And as for the second quarter, you already finished the shipment for the sales accounted to the second quarter. So I think you have the good visibility. So would you advise us what visibility you have? I'm sorry for the question about the short period of time that SPE's first quarter sales shift, a sales delay.
Is there any delay? And about the visibility of the second quarter sales. So quarter by quarter, we have that sales accounted. And every quarter, there are some changes taking place, and that's true. And as for the second quarter, we see some changes.
But as of today, as for the sales for the second quarter, as you mentioned, we have the good visibility. Thank you very much. And follow-up question. So sales in second quarter, do you see any risk factor, and where are they? If are there any?
Or you don't have any risk factor you need to mention? At this moment, we do not see any risk big risk factor. But we account the sales when we complete the installation. So there are some cases that the we cannot complete the installation of equipment, but we do not expect any big risk from this. So at this moment, we don't have any big risk factor we expect.
Thank you very much. That's all for me. This is a condo. Let me add. So there the case, we call the troubles.
So as for the completion of the installation, we have the very severe standard. So there are some cases that the situation maybe looked different from this side. So I cannot say that we get guarantee 100% there's no completion of the installation. So there may be some. Thank you very much.
So next is Jeffrey. Mister, I am from Jeffrey Securities. Can you hear me okay? Yes. So sorry to repeating the similar questions.
The q two, the breakdown, the China and DRAM expected to increase. I have a sense of discomfort. DRAM is going to increase in South Korea. I can understand. But in China, the proportion of Korea is remains the same.
And then China, the the proportion is going to increase, and then the DRAM also is increasing. And the can is do you have a visibility on that? Or the base initial plan and the first half forecast, the there are some difference by application, but no change by destination. And so it seems like you keep the q two by application, by destination coming from the accumulation or the in to or you are are you the willing to show the stability in the first half? So we don't have any intention to the maintain this initial plan.
According to the customer's investment plan, we offer the our. See, that happens to be this result. And so as you mentioned, the q two sales, the China's portion, sales in China, according to when we look at this quarter, it's large. That is a fact. But we haven't manipulated anything.
You know, we didn't have any intention to, you know, make any intention. Sorry. The the standard of installation, the completion standard, the the missed one capture the trends at the other companies, and the timing may be different somewhat. And that's why you feel a sense of discomfort or the difference. And please take that into consideration.
From the q two one to q two, any delay or the shift from q one to q two, but the DRAM is going to increase as is assumed. Yes. That's correct understanding. The this the next is a different the business around investment current investment and leading edge process in order to capture the leading edge, the investment. You are increasing the the r and d and the data miniaturization process.
And the leading edge process, the POR capturing forecast, can you explain that those area? We the advanced device device for the leading edge device, the we are good at, and we are going to capture the POR in that area. We are taking various initiatives. I cannot give you details on that. But on the IR day, what kind of initiatives we are going to take?
What we are taking, I would like to explain on IR day. We establish the r and d basis overseas in order to capture or to strengthen the capturing the the POR of a leading edge devices investment. And so we take measures and the to grow the our strong area. This is what we are striving for. Cleaning equipment or the covers area.
The what is your forecast? We are working on that. As for the this initiative, I cannot give you the details specifically. The if we have an opportunity, we would like to make an announcement. Thank you very much.
Thank you very much, mister Nakanulio. Next, let me invite mister Esli from UBS Securities. This is Esli from UBS. Can you hear me? Yes.
I can hear you. I would like to make a question on the impact of the export restriction. So at the December, there was a new regulations imposed. And in the past six months, did you see any change in share on yourself and also on the competitors? So I want to know about the changes taking place in the past six months.
And, also, after the integration of Trump administration, the other day, the policy on AI applications was announced. So after the inauguration of Trump administration, do you pay any specific attention or special attention to the policies by the Trump administration? As for the regulation, we do not see any big change. The subject of the item, the regulation may increase a little bit. We have such information, but we do not see any big change in the regulation relevant to our business.
So as according to original plan, we will carry out the business. And after the start of the Trump administration, we do not see any big change, basically. But because of the nature of mister Trump, there's some uncertainty about what remark or what policy he will come off. But, at present, he may pay attention to Russia. So regulation against China, I think he is trying to find out, what she should do with that.
That's the information we don't have, but we haven't heard anything concrete. So we'll continue to take the attitude and the measures as we had. Thank you very much for your answer. My second question is about the China business. So I think the local players in China are gaining the capabilities.
And the the event which is very, very attractive and very active, so do you expect that the Chinese local players will be prioritized in China? So at present, do you see any decline in number of customers for you, or do you expect or do you see that a stronger relationship with the customers for the advanced product or equipment? So please let me have the coloring and the situation. So as for the local suppliers in China, it is true that they are gaining more capabilities year after year in various areas. We see the presence of the local Chinese players.
I think you are finding the situation in such a way. But to in the advanced area where we have the strength, still, there are not many there's no Chinese local players. So for the memory and the power device area, there are many Chinese soccer players, but in order to differentiate ourselves from the others, we're taking various measures. So maybe it is true that we can expect that they they will catch up with us little by little. But at this moment, we do not regard them as a big threat, which will have the big impact on our business now.
But as I mentioned earlier, Chinese local players are gaining their capability now, so we have to take measures. We'll continue to take measures so that we can continue to be able to differentiate ourselves from these players in China. Thank you very much.
Thank you, miss. Mister, about the current situation? Can you hear me? Yes. We can.
One question. Package is moving. And, specifically, this fiscal year or next fiscal year, sales forecast for your prospect. Would you explain that? Packaging area.
So we explained at the briefing. The wafer cleaning, yeah, we are good at. And, also, last year, we released a new PLP quota remote here, and we'll make a contribution to our sales this fiscal year as well. And the size of our sales, the the single digit, the billion yen, the this fiscal year that we capture them and then they connect them to the further increase. Next fiscal year, it will become the double digit billion yen level.
It depends on the market situation. The the current trend is moving that way, so we would like to capture those numbers. And that's all for me. Thank you. Thank you,
We have two more minutes. So this would be the last question to entertain from Citigroup. Mister Shikano, mister Shimano, I have two questions. First is about how to see the forecast for this year. So three months ago, your expectation for the fourth quarter was uncertain.
So maybe in summer, when you see the leader time, you can have the more specific idea on the fourth quarter. And my interpretation is that you sounded a bit conservative. So we can expect, like, an upside. So I want to know how you see the situation now. And next is about the IELD Day.
Thank you very much for having that event, and I think we can hear about the directions from now. So if you share with us any general idea about the trend from now, which is available at this moment, please give it to us now. Thank you. Thank you for your questions. After of the fourth quarter, even now, we cannot give you the concrete idea about it.
So finally, the tariff on Japan was decided. So in that sense, from now, based on what was decided, we will study what we will do. So not only screen holdings, but the customers in overseas who buy the equipment and materials from Japan will study their plans from now. So in that sense, the outlook into the fourth quarter, maybe we have to be waited to one or two months. So maybe and at that time, I think we can have the more clearer visibility about next fiscal year and onward.
So I'd like to make the more detailed study. And I think your second question is about what we I am doing as myself. So towards the next step of growth, we are trying we have to make preparation. So in that sense, we are now reviewing the current business to find out where we can achieve the greater growth. And in order to make the next step, I think a current period is a period for the preparation.
So we'll make the proper investment into research and development or future growth, and we now secure the budget for that. So we will come up with more specific plans and make investment and make the harvest. So that's what we are going to do in this year. And that'll be reflected in the next midterm management plan so that we can achieve the target of the charter. So whole group will work toward that
And as was pointed out, there are so many things we can still do and improve as a screen holdings. And I'm telling it to my, employees that we still have room for the further growth. And we are not perfect yet, so when we take the proper appropriate measures, we can achieve the growth. So we'll we'll make preparation, take measures, and save the growth. So I'm sure that we can achieve the good results when we make the good preparation and take all the measures available.
And when the specific measures are decided, let me take another opportunity to make report of them to you. Thank you very much. Thank you very much, mister Shibano. And this concludes the earnings call by screen warnings for the first quarter ending in March 2026. Thank you very much for your participation despite your busy schedule to the end of the program. Thank you very much.