(Nishida) We are largely looking at product groups where raw materials account for a relatively high proportion of costs. Specific examples include HPP Company tapes and foams for use in the Industrial field and UIEP Company piping materials and building material-related products. We believe customers and distributors took steps to secure inventories for these products.

(Nishida) It is unlikely that any correction to these trends will occur entirely in the 2Q. A portion may carry over into the 2H. We expect trends to stabilize during the fiscal year under review.

(Nishida) While conditions slightly vary from segment to segment, we procured lower-priced raw materials prior to the cost surge, which created a time lag between the rise in procurement prices and their reflection in costs. For this reason, we anticipate the impact to be greater in the 2Q than in the 1Q. Meanwhile, as far as selling prices are concerned, although certain products are indeed taking time, we were able to pass on the upswing in costs to the prices of a large number of products in a prompt and timely manner. Although not directly related to recent trends in raw material costs, we had originally planned to improve selling prices. Looking ahead, we will secure and maintain margins from the 2Q.

(Nishida) We anticipate growth, especially in the non-LCD field, owing to robust demand centered on the semiconductor sector. In specific terms, binder resins for MLCCs and SELFA for use in the semiconductor manufacturing process account for a major portion of the growth in the non-LCD field.

(Nishida) We believe that the growth in N-HPP sales volumes is being affected in part by the EV market and sluggish market conditions in China. In addition to expectations of a slight recovery from the 2H, sales volumes for HUDs are projected to increase. On this basis, forecasts for the 2H remain unchanged from initial plans.

(Nishimoto) Aircraft-related demand is exhibiting a recovery trend. Accordingly, trends are exceeding expectations. Moreover, we are witnessing greater-than-anticipated growth in new fields, including drones and air mobility.

(Nishida) (Presentation materials P9) Orders were generally in line with plans in the 1Q. We anticipate an increase in the number of housing orders from the 2Q as well, on the back of such factors as new product sales growth. We expect this will help secure an increase in the number of houses sold in the 2H.

(Nishida) We posted expenses relating to the maintenance of a specific product and an associated inventory write-down totaling approximately ¥6.7 billion. This is a one-off incident, and we do not expect a recurrence from the 2Q. I would add that this does not relate to the Company’s mainstay products, including interlayer films.