Regarding large-scale construction and new products, Hitachi Zosen Inova AG (HZI) completed Ferrybridge 2 in the UK in December. There is no on-going loss-making projects with HZI now. In addition, both of its after-sales service business and renewal gas business are steadily expanding.
In Japan, NEDO's Hibiki Nada offshore wind power generation started operation in May, where measurement, collection, and analysis of operation data have been continued as a demonstration study. Besides, the production of a seabed type movable flap gate for Iwate Prefecture was completed at Sakai Plant at the end of October. And, a methane synthesis test facility has been completed at INPEX's Nagaoka field office jointly with NEDO and INPEX, International Petroleum Development Teikoku Co., Ltd., and demonstration tests have been conducted since October.
On the other hand, to improve the efficiency of overseas offices, we closed our Seoul office and UK subsidiary, and consolidated our procurement functions in Europe with HZI. In addition, the US subsidiary's New York headquarters was closed and its functions were consolidated in Houston.

As a result of the last three years, we have achieved the business expansion in terms of the volume, but not of the profit. To enhance profitability, we will continue to expand our after-sales service business by leveraging our manufacturing. In Environment Business, we established JVs in China and HZI in UK and commenced operations. HZI also has begun to win orders for retrofit projects in Germany. Besides, in Machinery Business, we introduced AI for welded zone pipes inspection, which we developed with our group company Nichizo Tech. In Infrastructure Business, we received an order from Hanshin Expressway Co., Ltd. for bridges seismic reinforcement.

SAP was introduced as a new ERP, and Hitz Advanced Information Technology Center (A.I/TEC) is under full operation now. The goal is that A.I/TEC should be expanded as the global base being applied to all products and businesses of the Group.

We will continue to promote diversity management, which started in 2015, work style reform, which started in 2018, and expansion of the service business, which began to produce results in 2019. In 2020, we will finish restructuring our business foundation as the outcome of "Change & Growth" and aim for full scale growth.
In 2020, A.I/TEC will use IoT and AI to expand business, enhance services, and improve production efficiency in the world of digitalization. We have a wide range of business opportunities for the same social issues as the SDGs. We do not forget the spirit of "challenge" of the founder E.H. Hunter, and we will develop opportunities on our own.