Thank you for joining the Recruit Holdings FY2026 Q1 earnings call. This call is a simultaneous translation of the original call in Japanese and translation is provided for the convenience of investors only. Earlier at 3.30 p.m., we disclosed the earnings release, earnings summary, and the presentation slides of this results call on our IR page. The video and transcript of this results call will be posted on our IR website after the session. As announced in our website two days ago, Envalys, an independent research firm, will publish a flash report on this earnings call. Please refer to it as well. Today's presenters are Hisayuki Idekoba, Representative Director, President and CEO, and Junichi Arai, Executive Vice President and Chief Financial Officer. In the first 30 minutes, DECO and Jun will provide a presentation followed by a Q&A session. Now, I'll turn the call over to DECO. Hello, I am Deko of Recruit Holdings. Today, I am pleased to share our Q1 FY2026 results and to raise our four-year consolidated guidance. HR technology delivered a strong Q1 performance with U.S. revenue increasing 30% year-over-year. Based on this momentum, As of today, we are raising our full-year HR technology revenue outlook to up 18.7% year-over-year globally and up 25.1% year-over-year for the U.S. As you all know, truly AI is evolving at such an incredible pace almost every single week. and many of you are probably noticing how AI agents are rapidly taking off as automation tools across so many industries. We ourselves genuinely feel it, that we've finally entered a whole new phase where our AI automation tools are boosting Productivity for HR teams worldwide. Teams that have historically been bogged down by time-consuming manual work. First, let me walk you through why our Q1 performance came in stronger than expected even in a market environment where U.S. hiring demand remains down year over year. Continuing previous trends, our revenue from small and medium businesses was very strong in Q1. For lean SMBs, having an open role stay unfilled for too long can literally be a matter of life or death for their businesses. By adopting our AI products, their time-consuming manual tasks get automated, dramatically shortening their In this environment, many of these clients prioritize hiring speed over cost. And as a result, growth in both the number of SMB clients and spend per client drove our overall top line expansion. On top of that, what we are seeing Now is revenue growth from large enterprise clients becoming more pronounced. Enterprise clients typically take longer to onboard. Decision-making for budget adjustments takes time, and legal reviews, especially when it comes to AI products, can be quite time-consuming. Even so, in Q1... Many larger customers were willing to trial our AI products. For instance, one healthcare client tested how much AI automation could boost their recruiters' productivity, and they concluded that our AI products helped them significantly reduce time spent on screening candidates delivering output equivalent to several full-time recruiters. Hearing feedback like that is very rewarding. The reality is that many large enterprises employ dozens, sometimes even hundreds of recruiters, incurring massive costs from manual processes. By enabling clients to dramatically boost their productivity by adopting our AI products, we believe we have a major source of growth ahead of us. So, when you look at our recent revenue growth, it's really the result of two key drivers working in tandem. Higher spend per client driven by the added value our AI delivers and a growing number of clients using our products. Using AI automation tools to boost the productivity of HR teams around the world burdened with manual work isn't just a win for employers. It is a huge plus for job seekers too. By automating processes that previously required time-consuming manual work, Job seekers are now experiencing firsthand that using Indeed means faster responses from employers, earlier access to first interviews, and ultimately finding a job sooner. And that is precisely why more people than ever are engaging our platform. At the end of the day, Getting people hired faster through AI automation creates a win for everyone, and we believe that's what matters most. At the same time, it's also true that average spend per client has risen rapidly over a short period. To protect our sustainable long-term growth, we will continue to monitor client satisfaction very closely. The incredible pace of AI evolution is amazing, but rapid change naturally brings wider implications. As such, we intend to carefully gauge the pace at which our customers and society are adapting and navigate this with both caution and flexibility. Our ability to leverage AI to raise customer productivity is advancing faster than anticipated which is welcoming but to be honest makes precise forecasting genuinely challenging. Today's updated guidance represents our estimate based on what we can see as of today as the picture becomes clearer over time. We will share our latest progress with you every quarter. That concludes my remarks for today. I will now turn it over to our CFO Arai to walk you through the detailed numbers. Arai-san, over to you. This is Arai speaking. Today I will be using the slides to... Focus on our upward revision to the FY2026 four-year consolidated guidance. First, our consolidated results for Q1 FY2026. Revenue, EBITDA plus S, and basic EPS each substantially exceeded our initial expectations and reached record highs. Revenue increased 18.9% year-over-year to 1.04 trillion yen. Thank you very much. We have repurchased 12.5 million shares for 120 billion yen under the ongoing 350.0 billion yen share repurchase program representing 34.3% of the total program. Growth cash and cash equivalents were 908.5 billion yen at the end of June. Based on these Q1 results and the latest outlook for each segment We have revised upward the FY2026 four-year consolidated guidance disclosed in May. This revision is mainly driven by HR technology where Q1 results significantly exceeded our initial expectations and we expect this trend to continue from Q2 onward. We assume an exchange rate of 159.0 yen per US dollar for FY2026. We now expect consolidated revenue to increase 14.4% year-over-year to 4.23 trillion yen compared with our initial guidance of 4.03 trillion yen. We expect EBTA process to increase 39.1% year-over-year to 1.105 trillion yen, surpassing the 1 trillion yen mark for the first time compared with our initial guidance of 949 billion yen. We have revised the EVGA process margin from 23.5% to 26.1%. We have also revised the basic EPS upward from 447 yen to 543 yen, an increase of 55.2% year over year. This reflects the upward revision to net income from our initial guidance of 623.0 billion yen to 755.0 billion yen, an increase of 51.9%. Thank you very much. Of our three business segments, HR technology continues to drive our growth and remains the core of our consolidated financial performance. The segment will account for approximately 43% of revenue and approximately 75% of EVTA pluses. I will now discuss the four-year outlook for HR technology. We now expect segment revenue on a U.S. dollar basis to increase 18.7% year-over-year to $11.4 billion above our initial outlook of 11% growth. On a Japanese yen basis, we have revised our outlook from growth of 13.4% year-over-year to growth of 24.9% year-over-year, or 1.82 trillion yen. By continuing to focus on revenue growth and disciplined business management, We have revised the segment EBTA plus X margin outlook from 41.0% to 45.8%. Looking at the segment revenue outlook by region, the US$615 million increase in the US was a key factor behind the substantial upward revisions to both the segment outlook and consolidated guidance. For the US, which is expected to account for 58% of segment revenue, We have upwardly revised our year-over-year revenue growth outlook from 13.6% to 25.1%, reaching $6.6 billion. For Europe and others, we have revised our year-over-year revenue growth outlook from 17.1% to 23.2%, reaching $2.5 billion. For Japan, we have revised our initial outlook up by 11.5 billion yen from growth of 2.1% year-over-year to growth of 5.4% year-over-year, or 367.0 billion yen. On a US dollar basis, we expect revenue to be virtually flat year-over-year at 2.3 billion US dollars. I will provide further details later. Now, on to Q1 segment results. As stated at the outset, Q1 results substantially exceeded our initial outlook. Revenue on a U.S. dollar basis increased 20.9% year-over-year to 2.8 billion U.S. dollars. On a Japanese yen basis, revenue increased 33.2% year-over-year to 455.4 billion yen. Segment EBTA process margin increased significantly to 47.4%, driven by strong revenue growth and continued discipline in cost management. Employee benefit expenses, including share-based payment expenses, together with outsourcing expenses, which represent broadly defined personnel expenses, were approximately 37% of revenue, down significantly from approximately 48% in Q1 FY 2025. While AI-related compute and infrastructure expenses are growing and reflect our expanded capabilities, they remain a small portion of our cost base and are not yet a material factor We will continue managing them with a clear focus on return on investment. I will next discuss the results by region, starting with the U.S., followed by Europe and others in Japan. Before discussing the U.S. results and outlook, I will again explain the definition of the U.S. OpJ growth rate, which we began disclosing with our Q2 FY2025 results. The U.S. OpJ growth rate is the year-over-year rate of change in average revenue per job posting on Indeed, which we disclose each quarterly earnings announcement to demonstrate how our monetization progress is on track, driven by the expansion of higher value features and packages, even as business clients higher in demand and activity fluctuate due to macroeconomic and other factors. US Ops J As average revenue per job posting on Indeed is calculated by dividing HR technology revenue in the U.S. by the total number of U.S. job postings on Indeed. The numerator, total HR technology U.S. revenue, comprises revenue from sponsored jobs, which consists of paid job ads like standard and premium sponsored jobs, as well as other products and services, including smart sourcing and smart screening, employer branding, and Indeed Flex. The denominator, the total number of U.S. job postings, is measured by the Indeed Hiring Lab U.S. Job Postings Index. The Indeed Hiring Lab U.S. Job Postings Index tracks hiring demand in the U.S. labor market and includes hosted jobs, which are jobs employers post directly on Indeed, and index jobs, which are jobs Indeed receives from employers' career sites. Applicant Tracking Systems, or ATSs, and other sources across the web. The total number of U.S. job postings includes all job postings on Indeed in the U.S., whether or not they are job ads. In other words, U.S. OpJ is the average revenue per job posting on Indeed, not the average unit price per sponsored job ad.

The premium sponsored jobs is the primary driver of U.S. revenue growth in HR technology in fiscal year 2026. This slide shows the features currently included in the premium package that support employers throughout the hiring process. Compared to standard sponsored jobs and free listings, the premium sponsored job goes well beyond the basic features. Offering a broader range of advanced features to deliver greater value for business clients looking to make their hiring process faster and more efficient. The U.S. opportunity growth rate reached 35% in the first quarter, substantially above the quarterly levels recorded in fiscal year 2025. Although the total number of U.S. jobs passed and declined approximately 4% year-over-year, U.S. revenue increased 30.0% year-over-year to a quarterly record of $1.64 billion. This was driven by further monetization development led by premium-sponsored jobs The previous record was 1.61 billion U.S. dollars in first quarter 2022 when revenue grew significantly up 24.9% year over year. However, the total number of U.S. jobs posting was approximately 57% higher than in first quarter 2026 and also increased approximately 24% year over year, leveraging the U.S. RPG growth rate up to just 1%. These results demonstrate that Our model has evolved from one centered on a search engine and a pay-per-click or PPC job as to an AI-powered, faster and more precise and high-value matching platform in a two-sided decision-making marketplace. Our full year outlook is based on the first quarter result together with our latest performance outlook for second quarter through fourth quarter which assumes an approximately 4% year-over-year decline in the total number of U.S. job posting consistent with the assumption at the beginning of the fiscal year. We have substantially revised our year-over-year U.S. revenue growth outlook from 13.6% to 25.1%, reaching 6.6 billion U.S. dollars, which would be a record high for full-year revenue on a U.S. dollar basis. We expect the U.S. R2J growth rate to be approximately 30% for fiscal year 2026. For context, the previous year revenue record was 6.0% Thank you very much. On a local currency basis, revenue increased approximately 34% year-over-year in the UK and approximately 46% year-over-year in Canada. This growth was mainly driven by continued monetization developments through the expanded adoption of premium-sponsored jobs for fiscal years. 2026, we have revised our full-year revenue growth outlook from 17.1% to 23.2% year-over-year, reaching 2.5 billion US dollars. As in previous years, approximately two-thirds of this revenue is expected to come from the UK, Canada, and Germany. In Japan, first quarter revenue increased 6.7% year-over-year to 93.3 billion yen in job advertising services. Indeed, price performed above our initial expectations, driven by an increase in the number of paid jobs and a growing price per job, while placement services have recovered faster than expected. For fiscal year 2026, we expect this trend to continue more than set in Thank you very much. Thank you very much. As DECO has been explaining since May, HR technology is not simply aiming to expand within the US$34 billion job advertising market. We believe we can achieve greater growth over the near to long term by converting business clients' hiring expenditure above the market of approximately US$200 billion. That includes placement services as well as an estimated US$68 billion for hiring automation into our revenue. Many companies worldwide are actively using AI to improve efficiency across areas of SG&A and the hiring processes of its many manual tasks of HR teams is no exception. By further improving matching accuracy and speed for job seekers and business clients in two Thank you very much. Segment revenue outlook for fiscal year 2026 is only 11.4 billion US dollars. There remains substantial white space and a long, long way of growth. Next, staffing. First quarter segment revenue increased 11.5% year over year to 455.2 billion yen. In Japan, revenue increased 3.5% year-over-year to 220.2 billion yen, reflecting continued unstable performance. In Europe and the U.S. and Australia, revenue increased 20.3% year-over-year to 235.0 billion yen, including a positive impact from foreign currency inflation. For the exchange rate fluctuations and reflecting strong performance in the West capturing solid demand as well as signs of recovery in staffing demand in Europe and Australia despite market conditions in both regions remaining challenging. EVTA DA process margin was 6.2%. We are making only minor avoidance revision to our initial full year outlook. We now expect segment revenue of 1.8%. 1.83 trillion yen and the segment EBITDA plus its margin of 5.6%. Finally, Marketing Margin Technology or MMT. MMT operates one of the largest margin platforms in Japan, connecting individual user accounts based on approximately 99 million recruit IDs with approximately 980,000 businesses across multiple verticals. Our individual user base and our points program maintain and increase the number of options taken on our platform by providing fulfillment functions that efficiently complete a sequenced process from customer acquisition through payment via accumulated unique data on our platform. Leveraging this unique data, MLT uses AI to propose optimal services and pricing tailored to each business client, most of whom are small and medium-sized businesses driving growth in their GMB. By shifting multiple platforms, including beauty and custom home building and renovation consulting which we discussed in February and May as well as automobile which I will discuss today from fixed monthly listing fees to GMV linked model. We believe we can achieve sustainable revenue growth even as AI technology becomes more widespread and continuously evolve. MMT consists of lifestyle including beauty, travel, dining and the soft solutions, housing and real estate and others. Before discussing the results and others, I will explain the evolution of automobile within others, where we introduce a GMB-linked model starting this fiscal year. Since 1984, automobile has operated an automobile inventory advertising service in Japan under the car sensor brand primary covering use Akihiko Mori It is a business model transition from print media to online services. It remains based on the fixed monthly listing fees through fiscal year 2025. Revenue in fiscal year 2025 was 33.4 billion yen. Starting in fiscal year 2026, in addition to the existing fixed monthly listing fees, we introduced a GMV-linked model under which business clients pay... Business clients pay based on purchase intent action taken by individual users such as inquiries on the dealership visit reservations. Business clients vehicle inventory data on the data such as the number of inquiries from individual users are synchronized with our platform through a vertical source of solutions. In addition, the use of AI has substantially reduced the workload required for business clients to upload the vehicle images. These capabilities have increased the volume of vehicle inventory images on the front lawn as well as the strategic allocation of sales and promotion expenses by driving growth in individual user action and the number of these deliveries. These effort will be contributed to increasing business clients Thank you very much. These vehicles listed resulting in the year-over-year increase of 12.5% in individual user actions, which was the main driver of the revenue increase. I will now discuss the results and outlook for MMT in the first quarter revenue in lifestyle increased 9.6% year-over-year driven largely by revenue growth in beauty resulting from the addition of GMV-linked model. Revenue in housing and real estate increased 2.8% year-over-year. Difference in stronger user action grows both in custom home building and renovation consulting, where the GMV-linked model was introduced, as well as in residential resale. As a result, segment revenue increased 3.7% year-over-year to 141.8 billion yen. Segment EBITDA profit margin was 30.8%. Thank you very much. Advertising spending in second quarter in areas where we expect return on investment from the GMB-linked model including beauty, travel, housing, real estate. We expect the first half EBITDA process margin to be approximately 31% in line with our initial outlook. Our full year outlook is unchanged from May. We expect segment revenue to increase 7.1% year-over-year to 605 billion yen with a segment EBITDA process margin of 30%. Now we would like to go on a Q&A. So if once you are called upon, please unmute. and one question plus a follow-up. A question will be allowed by hand raise. If you want to ask a question, please use the hand raise button.

First, Munakata-san from Goldman Sachs Securities. Please go ahead. This is Munakata of Goldman Sachs. Can you hear me? Yes, please. Thank you. Regarding U.S. Op Jays, It increased 35% year over year. In the fourth quarter, it was already high at 25%, but you have further accelerated, which is quite amazing. And in Deko's presentation, HR manual works are automated, and you are now entering a new phase, as per your comment. And Adari-san also talks about the expansion of the TAM. So the areas where you compete have changed. I believe the TAM is expanding. Do you actually feel that? Do you feel that where you play have changed? For example, compared to the existing online job ad domain, from automating manual processes, you are seeing the expansion of TAM going into the recruiting automation domain. Is that true? In other words, the wallet share that you will be able to go after is expanding. Do you feel that? Dekko, what do you think? Well, currently, I am in conversation with various clients and looking at the logs of those conversations that we've had with clients, it is particularly true for small and medium businesses. How should I say? This may not be a good example. If you think, for example, food delivery service, when I used food delivery service and I shared this with my wife, she said, well, how wasteful. It's much cheaper to buy at a nearby supermarket. But for me, I had the urge to eat quicker, so... I was prepared to pay a certain delivery fees that was an acceptable fee. But for small and medium-sized businesses, what's happening today is that they have certain roles that remain vacant for two months, and they are willing to pay additional $1,000 or $2,000. That's the kind of conversation that we are hearing more from SMBs. And by having these business clients using SMBs, For HR teams in SMBs, they usually have other responsibilities besides HR. And by using our services, they can now free up some of their time to spend on other tasks. And starting from SMBs to more larger clients, clients with a million or two million of budget, as I shared an example earlier, sometimes clients have the need to check the ROI. So for instance, AI sourcing, AI screening, these type of services that are introduced in order to compare with human recruiters that they have internally. And ultimately, the kind of roles or tasks assigned to internal agents have reduced. After trial of one month, they see the ROI and then make a decision to Introduce the service. So that's what's happening in some cases. So for us, it's more than just selling tools. Rather than simple sales of tools, simply put, the back-end process is ultimately... You don't want to hire 20 or 30 people and you don't want to screen these... You check their resumes, make sure they have their licenses, they contact them to confirm. So that's what's happening in the back-end processes. So by sending high-quality candidates by targeting, we have been successfully eliminating all these back-end processes. Maybe my explanation is poor, but for SMBs, ultimately, They are able to hire faster. They have more time to spend on other tasks. From medium to larger enterprises, they are realizing that their manual work has been reduced significantly. After a trial of our products for maybe a month or so, they realized that they are able to reduce manual tasks. Maybe they started with one task in mind, but by looking at the results, they are now expanding to cover other tasks. I apologize for the poor explanation, but that's what's happening. No, that's very clear. I believe for SMBs and larger enterprises, there are pains and issues that differ, I surmise. So the points that they emphasize clearly understood you understand the needs, their demands, and by matching solutions to address their issues, automation will further improve. Well, actually, they are the same. The issues are the same, but the way and how they realize the pains are different. So as I said before, why is there such steps as screening and sourcing afterwards? Let's say 20 people apply, and you did not find qualified candidates. You want to see more qualified candidates, and that's what leads to sourcing. companies do their own sourcing they search for resumes they contact the candidates but it's not producing results so maybe they will use an agent so that's what is happening in most cases so it's not that they are looking at the ROI from the very beginning and trying to reduce costs but rather looking at the conversations we've had with these companies they decided to hire and in some larger enterprises as well. Because the hiring is already decided, they now have the budget. So ultimately this ends up in more payments to us, but I don't feel that we are competing with automation tool providers. I think value propositions are slightly different. Thank you very much for that very insightful response. I apologize for that. No, that was very interesting. I have one follow-up question. The annual U.S. Op Day outlook is what I'd like to ask about. You've mentioned that it has become more difficult to have a precise forecasting, but as of today, after second quarter and later, what do you think will happen? What are your expectations? For instance, as the example you've shared, Growth from large enterprises remains firm. So do you consider that a growth driver? How are you building your guidance right now? What factors do you consider? That is a wonderful question. For me as well, I am working hard to better understand what will be the drivers going ahead. I have looked at the various factors. But at present, SMBs. The spend per client increase is going to contribute. For OpJ, it's not simply the unit price increase, but if you look at the breakdown increase in the number of paying clients also contributes, as well as the number of paid job postings and unit price per job increase. The three factors that I've just mentioned contribute to OpJ growth. So for SMBs, I think each factor contributes one-third. So that's roughly the combination of a contribution that we are seeing from those factors. So as I've just mentioned before, clients are starting to realize that our services do help them reduce the manual work and that they are now applying the services in other areas. So we are seeing our customers returning and also increasing the number of new clients All driving up the growth as well as the unit price per job. For larger enterprises, they have introduced automation tools and some are like SMBs. They see roles vacant for two months or so and they see that people on the ground are struggling so that's why they want to trial our products and services. And if you think about it, it makes sense. If you think of a good targeting advertisement. It basically uses AI sourcing and from among resumes. Comparing to a human recruiter reaching out to candidates versus AI sourcing, I think over a few years' time, I think the results will be the same. So advertising targeting is also being enhanced and this is going into the sourcing domain so maybe companies will focus on several different roles so the number of jobs may decrease but on the other hand unit price may increase so it's a combination of all these different factors so what I'm trying to say is that we are seeing such an amazing pace of AI introduction and AI growth so of course we are making an effort every day the market is huge But what accuracy? Is it 20%, 25%, or 30% growth rate? It's very difficult to calculate and forecast. That's the situation. Again, not a very clear answer, I admit. No, not at all. One thing that's caught my attention is in Deku's comments, You said an increase in unit price among other factors are robust and client satisfaction needs to be closely monitored. I believe that was a part of the comments. And at present, do you consider this any risk? Rather, things are performing well and it's difficult to predict nine months from now what will the levels be, figures be. You are looking at the U.S. OpJ outlook based on various perspectives. Do I understand that correctly? Right. So rather than two or three quarters ahead, it's easier to think longer term. No matter how you think about it, manually going through 20 or 30 resumes, making sure these candidates have licenses, calling them to make sure, and scheduling meetings, and such communication takes place and that's still not enough. You need to go into the resume database. You need to contact the candidates and they say they're not thinking about switching jobs right now. That's an enormous task and I don't think this will continue. So that manual process will be automated and this is certain, I'm sure of it. So we need to ascertain changes in customer's Demand as well as changes happening in the market and we need to keep pace with that change. That's the background to my comment earlier. I see, that's very clear. Thank you very much for such insightful comments. My apologies. No, no, no, thank you very much. The insightful comments, she says. Well, that's the only way we can describe this. Maybe in September with Munakata-san, we will have a face-to-face meeting, so we will come back to this topic. Thank you very much.

Well, many people raised their hand, so we would like to go quickly. From Nomura Securities. From Nomura Securities, Om-san, please. Thank you. I'm Nomura from Nomura Securities. Thank you very much. Well, you explained the example of a healthcare client using this as a hint. So added value from Indeed to the customer, what would be the added value that can be provided? Recruiter gained productivity and that is appreciated by customers. That is what you said. Well, what kind of productivity have... Well, this particular customer, well, looking at the majority of the healthcare related customers, especially There are many cases which we require the driver license. In those cases, they are struggling. So looking at the resume database and then approaching to the candidates, how about this job? So to that end, they have many lineups of recruiters. In this particular customer, what do we compare against? How many job interviews have you established and they are divided by the cost? So a resume, database, search, contract fee. On top of that, recruiters' personal expenses. And based on that, how many job interviews have been set up? And also, AI automated recruiters, make suggestions about the people and reaching out the possible candidates and then the AI set up a job interview. So comparing these two cases and then how much does this AI account for in terms of the number of personnel? So that is why I bring up this example. Does this answer your question? Well, does it mean this is for general purpose? Rather than This product is suited for a particular customer, not necessary for healthcare, but this can be versatile. As long as this is customized, this can be applicable to other industry and other customers. Yes, this is a general purpose to some extent, but as you may be aware, in the U.S., healthcare is the toughest market in terms of demand and supply, so the skills or qualification or the driver's license are required. So to put it simply, out of candidates who submitted their resume, how many percentage of those candidates are desirable candidates that the businesses feel like having an interview? Is it better to do the screening by AI or the... Sourcing by AI, which is a better value for money. Well, a screening can be done during the night. So screening is more universal. It can be easily expanded. Be it the construction workers. Well, even if 1,200 candidates apply, this can be introduced. Basically speaking, what would be the cost to pitch how many job interviews can be set up? That is the perspective of customers.

The recruiting automation domain, is that true? In other words, the wallet share that you will be able to go after is expanding. Do you feel that? Deko, what do you think? Well, currently, I am in conversation with various clients and looking at the logs of those conversations that we've had with clients, It is particularly true for small and medium businesses. How should I say? This may not be a good example.

If you think, for example, food delivery service, when I

used food delivery service, and I shared this with my wife. She said, well, how wasteful. It's much cheaper to buy at a nearby supermarket. But for me, I had the urge to eat quicker, so I was prepared to pay a certain delivery fees. That was an acceptable fee. But for small and medium-sized businesses, what's happening today is that they have certain roles that remain vacant for two months, And they are willing to pay additional $1,000 or $2,000. That's the kind of conversation that we are hearing more from SMBs. And by having these business clients using for HR teams in SMBs, they usually have other responsibilities besides HR. And by using our services, they can now free up some of their time to spend on other tasks. And starting from SMBs to more larger clients, clients with a million or two million of budget, as I shared an example earlier, sometimes clients have the needs to check the ROI. So for instance, AI sourcing, AI screening, these type of services that are introduced in order to compare with human recruiters that they have internally. and ultimately the kind of roles or tasks assigned to internal agents have reduced. After trial of one month, they see the ROI and then make a decision to introduce the service. So that's what's happening in some cases. So for us, it's more than just selling tools. Rather than simple sales of tools, simply put, the backend process is ultimately You don't want to hire 20 or 30 people, and you don't want to screen these candidates. You check their resumes, make sure they have their licenses, they contact them to confirm. So that's what's happening in the back-end processes. So by sending high-quality candidates, by targeting... We have been successfully eliminating all these back-end processes. Maybe my explanation is poor, but for SMBs, ultimately, they are able to hire faster. They have more time to spend on other tasks. From medium to larger enterprises, they are realizing that their manual work has been reduced significantly. After a trial of our products for maybe a month or so, they realized that they are able to reduce manual tasks Maybe they started with one task in mind, but by looking at the results, they are now expanding to cover other tasks. I apologize for the poor explanation, but that's what's happening. No, that's very clear. I believe for SMBs and larger enterprises, there are pains and issues that differ, I surmise. So the points that they emphasize are clearly understood. You understand the need. Their demands and by matching solutions to address their issues, automation will further proceed. Well, actually, they are the same. The issues are the same, but the way and how they realize the pains are different. So as I said before, why is there such steps as screening and sourcing afterwards? Let's say 20 people apply, and you did not find qualified candidates. You want to see more qualified candidates, and that's what leads to sourcing. Companies do their own sourcing. They search for resumes. They contact the candidates, but it's not producing results, so maybe they will use an agent. So that's what is happening in most cases. So it's not that they are looking at the ROI from the very beginning and trying to reduce costs. but rather looking at the conversations we've had with these companies they've decided to hire and in some larger enterprises as well because the hiring is already decided they now have the budget so ultimately this ends up in more payments to us but I don't feel that we are competing with automation Thank you very much for that very insightful response. I apologize for that. No, that was very interesting. I have one follow-up question. The annual U.S. OpJay Outlook is what I would like to ask about. You've mentioned that it has become more difficult to have a precise forecasting. But as of today, after second quarter and later, what do you think will happen? What are your expectations? For instance, as the example you've shared, growth from large enterprises remains firm. So do you consider that a growth driver? How are you building your guidance right now? What factors do you consider? That is a wonderful question. For me, as well, I am working hard to better understand what will be the drivers going ahead. I have looked at the various factors, but at present, SMBs, the spend per client increase, is going to contribute. For OpJ, it's not simply the unit price increase, but if you look at the breakdowns, The increase in the number of paying clients also contributes, as well as the number of paid job postings and unit price per job increase. The three factors that I've just mentioned contribute to OpJ growth. So for SMBs, I think each factor contributes one-third. So that's roughly the combination of a contribution that we are seeing from those factors. So as I've just mentioned before, clients are starting to realize that our services do help them reduce the manual work and that they are now applying the services in other areas. So we are seeing our customers returning and also increasing the number of new clients or driving up the growth as well as the unit price per job. For larger enterprises, they have introduced automating automation tools and some are like SMBs. They see roles vacant for two months or so and they see that people on the ground are struggling so that's why they want to trial our products and services. And if you think about it, it makes sense. If you think of a good targeting advertisement, it basically uses AI sourcing and from among resumes Comparing to human recruiter reaching out to candidates versus AI sourcing, I think over a few years time, I think the results will be the same. So advertising targeting is also being enhanced and this is going into the sourcing domain. So maybe companies will focus on several different roles. So the number of jobs may decrease, but on the other hand, unit price may increase. So it's a combination of all these different factors. So what I'm trying to say is that we are seeing such an amazing pace of AI introduction and AI growth. So, of course, we are making an effort every day. The market is huge. But what accuracy is at 20%? 25% or 30% growth rate is very difficult to calculate and forecast. That's the situation. Again, not a very clear answer, I admit. No, not at all. One thing that's caught my attention is Indeko's comment You said an increase in unit price, among other factors, are robust and client satisfaction needs to be closely monitored. I believe that was part of the comments. And at present, do you consider this any risk? Rather, things are performing well and it's difficult to predict nine months from now what will the levels be, figures be, but... You are looking at the U.S. Op J outlook based on various perspectives. Do I understand that correctly? Right. So rather than two or three quarters ahead, it's easier to think longer term. No matter how you think about it, manually going through 20 or 30 resumes, making sure these candidates have licenses, calling them to make sure, and scheduling meetings, and such communication takes place and that's still not enough. You need to go into the resume database. You need to contact the candidates and they say they're not thinking about switching jobs right now. That's an enormous task and I don't think this will continue. So that manual process will be automated and this is certain I'm sure of it. So we need to ascertain changes in customer's Demand as well as changes happening in the market and we need to keep pace with that change. That's the background to my comment earlier. I see, that's very clear. Thank you very much for such insightful comments. My apologies. No, no, no. Thank you very much. The insightful comments, she says. Well, that's the only way we can describe this. Maybe in September with Munakata-san, we will have a face-to-face meeting. Thank you very much.

Well, you explained the example of a healthcare client using this as a hint. So added value from Indeed to the customer, what would be the added value that can be provided? Recruiter, again, the productivity and that is appreciated by customers, that is what you said. What kind of productivity have increased as a result of the utilization of indeed sourcing or the checking of the driver's license or not? So do you have any key words into your mind from that perspective? Well, this particular customer, well, looking at the majority of the healthcare-related customers, Especially, there are many cases which will require the driver's license. In those cases, they are struggling. So looking at the resume database and then approaching to the candidates, how about this job? So to that end, they have many lineups of recruiters. In this particular customer, what do we compare against? How many job interview have you established and they are divided by the cost? So a resume, database, search, contract fee?