 It is a great honor to present to you today about Japan's strategy for economic growth. Last December, we have a new government led by Prime Minister Abe, and this government has put the top priority on the economic policy to overcome the long-lasting deflation shown in this chart. So I believe this is the very best timing to introduce what changes are taking place in economic policies in Japan. The main topic of my presentation is the economic policy by a big government, so-called Abenomics, and the position of growth strategy in it. Prior to these main topics, I'd like to touch briefly on Japan's economic situation as a background to Abenomics. So what is the cause of the deflation in Japan? Many specialists believe that the insufficient monetary loosening by Bank of Japan and excess appreciation of the end are the main causes. Others emphasize structural or external environmental changes, such as a decline in population fears, international competition, and an inflow of low-priced products from emerging countries. I think deflation in Japan is very complicated in nature, so it is difficult to identify the specific cause. However, it is clear that private demand has been de-placed since the dead bubble burst in Japan, and there have been no effective measures implemented so far. So please look at the page 4. As shown in this chart, I would like to talk briefly about the impact of the deflation in Japan. I think the deflation in Japan is very complicated in nature, so it is difficult to identify the specific cause. Look at the page 4. As shown in this chart, the income distribution to the health sector indicated in blue line has been declining. On the contrary, corporate income indicated in green line has increased. Actually, until early 2000, corporate sector had been over-debt, so they were asked to postpone investment to repay debt. However, by the mid-2000s, overall corporate sector had already been released from the heavy debt repayment. However, they have been slow to invest in the domestic market, and they also have been slow to increase regular employment and to raise a regular payment. Please look at slide 5. This is a chart of saving investment balances by sector. And from this chart, you can identify the changes in saving investment balance of corporate sectors. That was blue-colored bar. The changes is from excess investment to excess savings. And on the other hand, household savings, which has indicated in the right blue bar, has been declined as a result of depressed income distribution and an aging of society. And another silent feature is consistently high level of excess investment ratio of government. Many of you might know that Japan's government debt to nominal GDP ratio reached to an extremely high level in comparison with those to the other major industrialized countries shown in the slide of page 6. This is a result that government playing a significant role in supporting economic activity and so being unable to implement comprehensive fiscal reform despite being very concerned about expansion of social security spending along with rapid aging of society. Please look at slide 7 in spite of such significant deterioration of fiscal situation. The yield of Japanese government bonds so-called JGB has been kept at low levels up to now. This is also a result of prolonged deterioration as there has been little private sector demand for money so financial institutions has had to hold government bonds. In other words, such a stable environment for financing allows the government to postpone fiscal consolidation. Please look at slide 8 as shown in this chart. Domestic investors hold more than 90% of JGB as end of March 2012. Such stable bond holding structure could be maintained because overall saving investment balance of Japan has been excess savings. In other words, Japan has been the current account surplus countries. However, Japan's current account surplus has started declining. Please look at slide 9. It will turn to negative around or before 2020 mainly due to a decline in savings of aging households. It implies that stable government bond holding structure is unsustainable in the medium term future. Japan must urgently implement a comprehensive economic reform to revert to a sustainable economic growth. That is the background to a ban on mix. And please look at the slide 10. As mentioned, Mr. Yamada, a ban on mix is a three-plong strategy, namely aggressive monetary policy, flexible fiscal policy, and growth strategy. And the degree that these three-plong have progressed up to now is different. So I will now discuss these three one by one. Please look at slide 11. In terms of an aggressive monetary policy, it has been launched. In this January, the government and the Bank of Japan released the joint statement on overcoming deflation and achieving sustainable economic growth. As concrete measures, BOJ decided to introduce 2% price stability target instead of 1% price stability goal and enhanced the asset purchase program. These aggressive monetary policies are not directly targeting at the exchange rate. However, please look at the slide 12. However, the end exchange rate depreciated so rapidly in these three months. The end depreciation reflects not only expectation of further monetary easing by BOJ, but also expansion of Japan's trade deficit, a return of confidence in the euro area, and a retreat of concern over the U.S. economy. For whichever reason, the end depreciation so far contributed to improve the profit of economic export company. And please look at slide 13. This is a chart about flexible fiscal policy. Abe government flexible fiscal policy has been initiated, but not concluded yet. This is the outline of emergency economic measures. It has been decided by the cabinet in January, and total size of measures in three priority area is 10.3 trillion yen. The government explains that its expected impact on real GDP will be approximately 2%. As far as fiscal year 2013, economic recovery will be supported by large-scale public works. However, it is impossible to maintain such a large economic stimulus package every year. All budget restraint in Japan becomes so severe. Please look at slide 14. Here is a chart of general government primary birth in Japan, including the schedule tax increased for twice consumption tax ratio increase, the medium-term fiscal target set in 2010, and aiming at primary surplus in fiscal year 2020 will not be achievable. In order to curb the risk of fiscal crisis, flexible fiscal policy must be based on reliable medium-term fiscal target and comprehensive economic reform and social security and taxation systems. However, it is unfortunate that neither will be achieved before mid-2013, so I think flexible fiscal policy has not concluded yet. And the third prong of Abenomics, the gross strategy, has not been released yet, so Abenomics is still at an early stage, but however, it has been very welcomed up to now. Please look at slide 15. This is a chart about stock prices. There are some positive signs. Most explicit signs is the remarkable surge in stock markets shown in this chart, a red line, and slight and cautious improvement of expectation among private sector are observed. As I mentioned earlier, Japanese economy is expected to recover in the short term thanks to large-scale economic stimulus packages, as well as the end depletion. There are some movements among large export companies to reflect their profit increase in bonuses. However, economic growth and wage increases based on one-time effect is unsustainable. Household income increase based on more employment or higher productivity is required for sustainable economic growth. That is the aim of Japan's gross strategy. Please look at slide 16. This is the economic policy-making bodies of Abenomics. In Japan, people's attention has been focused on what issues are discussed in these economic policy-making bodies of Abenomics. Concerning the gross strategy, headquarters for Japan's economic revitalization is scheduled to present the master plan in the middle of this year. Its decisions are expected to reflect the strategic goal set by the Industrial Competitive Council, a council of prime ministers. And please look at page 17. This is the list of urgent policy issues made by headquarters up to now. One of the salient features is that regulatory reform is a top priority. I take a positive stand on the development of discussion so far because I believe that the basic foundation of Japan's gross strategies should be based on the regulatory reforms to promote the private sector activity. And there is some hope that the new gross strategy will be different from Japan's traditional approach of allocating public money to a government-selected priority sector and protecting it by regulation, which is no longer effective in increasing competitiveness. Creating a more business-friendly environment is the only way to enhance the competitiveness of companies based in Japan. In other words, it is the only way to sustainable gross. In spite of such an importance, regulatory reforms are more difficult to implement and need more time in comparison with the monetary easing or fiscal stimulus package because as there is a conflict of interest, regulatory reforms have been brought by strong lobby groups. Especially for this year, the election of House of Councillors is scheduled in Japan, so there is a risk of deterioration of regulatory reforms. It is indeed true that Japan needs a stable government. However, victory without sustainable gross strategy is unsustainable and meaningless. So I hope that the government should explain the necessity of reforms to voters and express their strong commitment to achieving it before the election. There is a significant possibility that such a stance will be welcomed by non-vested interests which shem to outnumber the vested interests. Instead of final remarks, I would like to mention two policy areas where I have most interest among the urgent issues. The first is economic partnership. Please look at slide 18, here is the EPA-FTA in Japan. Unfortunately, Japan is faring behind the development of networking high-level EPA and FTA so far. However, it is explicit that promoting high-level economic partnership is crucial not only for improving trade and investment environment, but also accelerate inevitable but politically unprepared reforms. So I hope for the successful negotiation of Japan-EUEPA. And please look at slide 19, this is a framework of multinational economic partnership in Japan. In Asia-Pacific region, joining TPP would be one of the key to success of Abenomics because Asia-Pacific is such an important region for Japan for both business and security. It seems more and more likely that Japan will join the TPP negotiation after U.S.-Japan summit last weekend. Successful TPP will have a positive effect on the other regional economic partnerships such as the SIF, which is an economic partnership among 10 countries and plus 6 countries, or FTA among Japan, China and Korea. Along with the decisions on the TPP, the government should accelerate the agricultural policy based on regulatory reforms. I believe transforming the agricultural industry from industry protected by high tariff to export-oriented industry is a very effective solution. I also believe a positive stance for economic partnership for Japanese government will be welcomed internationally and alleviate the external concern about Japan's economic policy such as currency or something like that. And second area is the youth and women's policy. Please look at the slide 20. In Japan, lifetime employment is still preparing for the middle-aged workers, but the younger generation faces severe obstacles to find a regular full-time employment. An employment rate for the younger generation is relatively high in comparison with the other age groups shown in this chart. People without full-time jobs are less likely to marry. An unstable living condition of the younger generation is one of the causes of low fertility rate in Japan. On the other hand, an M-shaped curve still observed in the labor participation rate of female. Please look at the chart 21. An M-shaped curve in Japan is because many women are still urged to abandon their career as a result of insufficient support for raising children. So there is a significant room for Japan to mitigate decline in the labor force by boosting the participation of women. Actually, policy measures for the youth and women tend to be lagged behind because the senior is far more politically influential in an aging society. However, improving the environment for the youth and women will be effective not only to enhance the domestic demand, but also to help sustain Japan's population. Thank you very much for your kind attention and very much looking forward to an active discussion with you. Thank you very much.