Our company has pursued implementation of initiatives following our public announcement on March 15, 2024 of "Response Toward Realization of Management Considering Capital Costs and Stock Price." Progress monitoring and current situation analysis of these initiatives are conducted at the Board of Directors. Regarding each indicator based on FY2025 fiscal year-end results, capital costs (WACC on CAPM basis) rose to approximately mid-7% range reflecting upward trends in domestic interest rates, while capital profitability (ROE) remained at 12.8%, exceeding capital costs. Additionally, as of the second quarter earnings announcement on November 10, 2025, PBR has been trending around 0.9x and PER around 15x. Moreover, our company's business environment is undergoing significant changes. While U.S. automobile tariff rates, our most critical market, have been reduced to 15%, their impact on company performance remains substantial. Further, regarding automobile electrification, BEV transition timing has become more gradual compared to initial announcements, while HEV demand has increased. Our company will advance medium to long-term corporate value enhancement initiatives in accordance with the "SUBARU 2025 Policy" announced on November 10, 2025. "SUBARU 2025 Policy" (Japanese): https://www.subaru.co.jp/outline/about/policy/ (English): https://www.subaru.co.jp/en/outline/about/policy/ Regarding the "policies and targets" initially set as "Response Toward Realization of Management Considering Capital Costs and Stock Price"—the pursuit of "industry-leading profitability" and "ROE of 10% or above" as long-term targets toward 2030, and four main themes toward these targets ("ROE Improvement," "Optimal Capital Allocation/Per-Share Value Enhancement," "PER Improvement," "Effectiveness Enhancement")—remain unchanged. However, implementation approaches toward realizing these targets are flexibly adapted in consideration of business environmental changes. From the "ROE Improvement" perspective, we aim for industry-leading profit margins through sound growth that counters business environmental change impacts. In addition to steadfast execution of "manufacturing innovation" and "value creation," we will leverage capabilities accumulated through previous initiatives. We will significantly expand our product lineup including HEV and ICE vehicles in addition to BEV to meet diverse market and customer needs, targeting achievement of 12 million units in global sales by the early 2030s. Additionally, we are launching a new project called "Original Cost Transformation 20–30" targeting ¥200.0 billion in cost reduction by 2030. Furthermore, through strengthening of brand value based on "peace of mind and enjoyment" as our offered value to distinguish the SUBARU brand, we will also pursue revenue expansion across the entire value chain. From the "Optimal Capital Allocation/Per-Share Value Enhancement" perspective, we continue to pursue three-pronged execution of financial soundness and stability realization, growth investment, and shareholder returns. Regarding growth investment, while we had planned electrification-related investment of approximately ¥1.5 trillion maximum through around 2030, considering current circumstances, we are delaying the timing of full-scale BEV mass production investment and additionally strengthening research and development in non-BEV domains to flexibly respond to diversifying needs. Regarding shareholder returns, we revised our return policy as shown in the chart below in our "FY2025 Third Quarter Earnings Announcement" announced February 7, 2025. Under a business environment of high uncertainty, we heighten capital efficiency consciousness while continuing to position shareholder returns as a critical element of sustainable management. Note: Regarding FY2024 shareholder returns, the self-share repurchase of which implementation judgment was deferred due to uncertain tariff impacts will be implemented in accordance with our return policy, as a certain level of progress has been made in U.S.–Japan tariff negotiations. We will commence acquisition on August 8, 2025 and complete it by December 23, 2025. From the "PER Improvement" perspective, we will continue to expand communication of our vision, strategy, and strengths, as well as dialogue opportunities, to enhance stakeholder understanding and engagement. Specific dialogue status for FY2024 is detailed in this report's [Principle 5–1: Policy on Constructive Dialogue with Shareholders] (3) Dialogue Implementation Status. Additionally, through promotion of further Board of Directors effectiveness enhancement initiatives, we will link to our sustained growth and medium to long-term corporate value enhancement.