本田技研 (HMC) 2022 Q2 法說會逐字稿

[Interpreted] Thank you very much for taking time to view our program today. Now we'd like to start our Honda Motor Co., Ltd. Fiscal Year 2022 Second Quarter Financial Results Presentation Meeting. I am -- my name is Okamoto from Corporate Communications facilitator for today. Allow me to introduce today's presenters.

[翻譯] 非常感謝您今天抽出時間觀看我們的節目。現在我們想開始我們的本田汽車有限公司 2022 財年第二季度財務業績發布會。我是——我的名字是 Okamoto，來自今天的企業傳播協調員。請允許我介紹今天的主持人。

We have our Director, Executive Vice President and Representative Executive Officer, Mr. Seiji Kuraishi.

我們的董事、執行副總裁兼代表執行官倉石誠司先生。

[Interpreted] Good to see you.

[解釋] 很高興見到你。

[Interpreted] And Director, Senior Managing Executive Director, Mr. Kohei Takeuchi.

【解讀】兼董事、高級常務董事，竹內康平先生。

[Interpreted] Good to see you, everyone.

[解釋] 很高興見到你們，大家。

[Interpreted] Then I would like to ask Mr. Kuraishi to give an outline of our fiscal year '22 second quarter results.

[解釋] 那麼我想請倉石先生概述一下我們22財年第二季度的業績。

[Interpreted] I would like to begin by expressing my profound gratitude to the support given to us by our loyal customers, supporters and all other stakeholders around the world. Currently, there are customers who are waiting Honda products. We sincerely apologize for the vehicle production delay and the inconvenience caused.

[解釋] 首先，我要對我們的忠實客戶、支持者和世界各地的所有其他利益相關者給予我們的支持深表感謝。目前，有客戶在等待本田產品。對於車輛生產延誤及給您帶來的不便，我們深表歉意。

The drop in production attributable to a combination of supply shortage of certain parts, including semiconductors and lockdown in mainly Southeast Asia due to the resurgence of COVID-19 was greater than our previous forecast. As a result, FY 2022, Q2, Automobile Group unit sales was 917,000 units.

由於 COVID-19 的死灰復燃，包括半導體在內的某些零部件供應短缺以及主要在東南亞地區的封鎖，導致產量下降大於我們之前的預測。因此，2022 財年第二季度，汽車集團的銷量為 917,000 輛。

Honda is developing alternative equivalent parts and taking other measures to promote deal source of components. We will recover production from the beginning of next year. But given the prolonged lockdown in Asia amongst others, FY 2022 Automobile Group unit sales forecast is revised downward from 4.85 million units to 4.2 million units.

本田正在開發替代等效零件並採取其他措施促進零部件的交易來源。我們將從明年年初開始恢復生產。但鑑於亞洲等地區的長期封鎖，2022財年汽車集團的銷量預測從485萬輛下調至420萬輛。

With the cooperation from various stakeholders, we will strive to keep impact on production to a minimum, and we will work to deliver our products to our customers as early as possible.

在各利益相關方的合作下，我們將努力將對生產的影響降至最低，我們將努力儘早將我們的產品交付給我們的客戶。

I'll move on to present the outline of FY 2022, second quarter financial results and fiscal year 2022 financial forecast. FY '22 is 6 months unit sales was: Motorcycles, 8,173,000 units; Automobiles, 1,915,000 units; Life Creation business, 3,230,000 units.

我將繼續介紹 2022 財年的概要、第二季度財務業績和 2022 財年財務預測。 FY '22 是 6 個月的銷量是：摩托車，8,173,000 輛；汽車，191.5萬輛；生活創造業務，323萬台。

Next, the main markets. Japan's 6-month industry demand exceeded the same period last year. But the 3-month sales was hard hit by semiconductor supply shortage and was below the same period last year. Despite strong sales vessel, Honda's 3-month unit sales was down from the same period last year. N-BOX Series set #1 sales in minicar segment for the first half of FY 2022.

其次，主要市場。日本6個月行業需求超過去年同期。但 3 個月的銷售額受半導體供應短缺的嚴重影響，低於去年同期。儘管銷量強勁，但本田 3 個月的銷量仍低於去年同期。 N-BOX 系列在 2022 財年上半年在微型車領域銷量排名第一。

Forecast for FY 2022 industry demand is expected to be strong despite semiconductor shortage. Honda has revised the previous forecast given the current production situation. Next is United States. Industry demand recovered due to stimulus package and others. Fiscal 6 months total was above the same period of the previous year. Second quarter 3 months was lower due to semiconductor supply shortage.

儘管半導體短缺，但預計 2022 財年行業需求將強勁。鑑於目前的生產情況，本田修改了之前的預測。接下來是美國。由於刺激方案等，行業需求有所回升。 6 財年合計高於上年同期。由於半導體供應短缺，第二季度 3 個月較低。

Honda performed the market growth with light trucks as the main driver. Passport updated its single month sales record. It sets at an all-time monthly sales record in September. In June, we announced the name of the first Honda brand volume, EV SUV in North America. The name is Prologue. FY 2022 industry demand forecast despite semiconductor supply shortage, demand is expected to continue to be strong. Honda has revised the previous forecast, reflecting the current production situation. Next, China. Industry demand recovered primarily due to economic stimulus measures. But semiconductor shortage resulted in demand lower than the same period last year.

本田以輕型卡車為主要驅動力實現了市場增長。 Passport 更新了其單月銷售記錄。它在 9 月份創下了月度銷售記錄。 6 月，我們宣布了北美首款本田品牌量產 EV SUV 的名稱。名字叫序言。 2022財年行業需求預測儘管半導體供應短缺，但預計需求將繼續強勁。本田修改了之前的預測，反映了當前的生產情況。下一個，中國。行業需求回升主要是由於經濟刺激措施。但半導體短缺導致需求低於去年同期。

Honda also saw strong sales of XR-V amongst others, but the Q2 3-month sales underperformed the same period last fiscal year. Calendar year 2021 industry demand forecast expected to stay strong, exceeding last calendar year. Honda will increase its EV lineup and offer attractive products.

本田也看到了 XR-V 的強勁銷售，但第二季度 3 個月的銷售表現遜於上一財年同期。預計 2021 日曆年行業需求預測將保持強勁，超過上一個日曆年。本田將增加其電動汽車陣容並提供有吸引力的產品。

In October, we announced our electrification strategy in China. First, Honda brand, China EV car, e:N series was unveiled. Honda's omnidirectional advanced driver-assistance system, Honda SENSING 360, will be deployed in China in 2022.

10 月，我們宣布了在中國的電氣化戰略。一是本田品牌、中國EV車、e:N系列亮相。本田全向高級駕駛輔助系統Honda SENSING 360將於2022年在中國部署。

Moving on to our Motorcycle business industry demand. In many countries, demand recovered and exceeded the same period last year. Honda's Q2 6 months total exceeded the previous year. But regarding the second quarter 3 months total, wholesales dropped from the same period last year in Vietnam and Thailand due to resurgence of COVID-19.

繼續我們的摩托車業務行業需求。在許多國家，需求恢復並超過了去年同期。本田第二季度的 6 個月總計超過了上一年。但就第二季度的 3 個月總數而言，由於 COVID-19 的死灰復燃，越南和泰國的批發量較去年同期有所下降。

FY 2022 forecast, industry demand, though there is still concern over a COVID-19 resurgence, demand is expected to increase steadily. Honda revised upward its forecast, primarily based on the current sales in India and Indonesia. Outline our FY 2022, 3 months results. Despite the impact of semiconductor supply shortage and increase in raw material costs, due to positive effects of unit sales increase, cost reduction and currency, operating profit increased JPY 272.9 billion to JPY 442.1 billion.

2022 財年預測，行業需求，儘管人們仍然擔心 COVID-19 的死灰復燃，但預計需求將穩步增長。本田上調了預測，主要基於印度和印度尼西亞目前的銷售情況。概述我們 2022 財年 3 個月的結果。儘管受到半導體供應短缺和原材料成本增加的影響，但由於單位銷售額增加、成本降低和貨幣的積極影響，營業利潤增加了 2,729 億日元至 4,421 億日元。

Also, the earnings per share attributable to owners of the parent due to increase in share profit investments accounted for using the equity method increased by JPY 229.1 billion to JPY 389.2 billion. Unit sales and income statement are as shown. And next, our FY 2022 financial forecast.

此外，由於採用權益法核算的股權投資增加，歸屬於母公司所有者的每股收益增加了 2,291 億日元，達到 3,892 億日元。單位銷售額和損益表如圖所示。接下來，我們的 2022 財年財務預測。

COVID-19 resurgence, shortage of certain parts include -- including semiconductors and rise in raw material prices are expected to continue. Though we anticipate a harsh external environment, reduction -- SG&A cost reduction and other profit enhancement efforts are expected to result in maintaining operating profit at JPY 660 billion equivalent to last fiscal year. Unit sales and income statement are as shown.

COVID-19 死灰復燃，包括半導體在內的某些零部件短缺，預計原材料價格將繼續上漲。儘管我們預計外部環境會很嚴峻，但通過削減 SG&A 成本和其他提高利潤的努力，預計運營利潤將維持在相當於上一財年的 6,600 億日元。單位銷售額和損益表如圖所示。

Next, about dividends. FY 2022 interim dividend is JPY 55 per share. Annual dividend outlook remains unchanged. Honda will strive to continue to realize stable shareholders' return aiming towards a payout ratio of around 30%.

接下來，關於股息。 2022財年中期股息為每股55日元。年度股息前景保持不變。本田將努力繼續實現穩定的股東回報，目標是派息率達到30%左右。

[Interpreted] Now we'd like to have Mr. Takeuchi, our Director and Senior Managing Executive Officer, to provide details for our quarter financial results and forecasts.

[解釋] 現在我們希望我們的董事兼高級常務執行官 Takeuchi 先生為我們的季度財務業績和預測提供詳細信息。

[Interpreted] Okay. Allow me to explain. Looking at the results of the second quarter for the 3 months, our unit sales of Honda Group showed declines in Vietnam and Thailand in motorcycle operations, declines in China and the U.S. in automobile operations and an increase in the U.S. and other markets in Life Creation operations.

[解釋] 好的。請允許我解釋一下。從 3 個月的第二季度業績來看，本田集團的單位銷售額顯示，越南和泰國的摩托車業務下降，中國和美國的汽車業務下降，美國和其他市場的 Life Creation操作。

Turning our eye to the earnings. Sales revenues due to lower sales in Automobile operations declined from the second quarter last year to JPY 3.4043 trillion. Operating profit was due to reduced profit from a lower sales revenues and model mix at JPY 198.9 billion. And equity and earnings of affiliates was due to reduced profit in China, it was JPY 51.3 billion.

將目光轉向收益。由於汽車業務銷售額下降，銷售額從去年第二季度下降至 340.43 億日元。營業利潤是由於銷售收入和車型組合下降導致利潤減少，為 1,989 億日元。關聯公司的權益和收益是由於在中國的利潤減少，為513億日元。

Next, I would like to explain the different factors affecting profit. Pretax profit for the second quarter was JPY 249 billion, which was down by JPY 96.6 billion compared to the same period last year. Operating profit was, even though there was an increase due to currency effect due to decreased sales revenue and model mix leading to lower profit, it was JPY 198.9 billion, down by JPY 83.9 billion versus same period last year.

接下來，我想解釋影響利潤的不同因素。第二季度稅前利潤為2490億日元，比去年同期減少966億日元。營業利潤雖然因銷售收入減少和車型組合減少導致利潤下降而受到貨幣影響增加，但仍為 1,989 億日元，與去年同期相比減少 839 億日元。

Next, going to our financial results by business segment. Operating profit for motorcycle operations was due to reduced profit due to volume fluctuation model mix, it was JPY 67.4 billion. Next, going to operating profit from Automobile operations and operating profit related to Automobile sales included in financial service operations is expected at JPY 127.7 billion added together.

接下來，按業務部門查看我們的財務業績。摩托車業務的營業利潤是由於銷量波動模型組合導致利潤減少，為 674 億日元。其次，汽車業務的營業利潤和金融服務業務中與汽車銷售相關的營業利潤加起來預計為1277億日元。

Operating profit from Automobile operations was due to volume decrease and lower margin from model mix, it was JPY 46.4 billion. Operating profit from financial services operations was due to difference in the amount posted as provision for credit losses, JPY 84.5 billion.

汽車業務的營業利潤是由於銷量減少和車型組合的利潤率下降，為 464 億日元。金融服務業務的營業利潤是由於記入信用損失準備金金額的差異，即 845 億日元。

Next, looking at the operating profit for Life Creation operations and other operations, it was JPY 500 million. Of this amount, the operating loss from aircraft and aircraft engines was at JPY 7.2 billion.

接下來，看看Life Creation業務和其他業務的營業利潤，是5億日元。其中，飛機和飛機發動機的運營損失為 72 億日元。

Next, the earnings for the first half of the fiscal year are as shown on the slide. To explain the factors affecting the profit, pretax profit was JPY 560.3 billion, which is up JPY 288.1 billion versus the same period last year. Operating profit was due to sales change and model mix impact increase as well as currency effect, JPY 442.1 billion, which was JPY 272.9 billion, up from the same period last year.

接下來，本財年上半年的收益如幻燈片所示。解釋影響利潤的因素，稅前利潤為5603億日元，比去年同期增加2881億日元。營業利潤是由於銷售變化和車型組合影響增加以及貨幣效應，比去年同期增加了 4,421 億日元，增加了 2,729 億日元。

Next, the free cash flow for the nonfinancial services operations for the first half of the fiscal year was minus JPY 18.7 billion. And the balance of cash and cash equivalents at the end of second quarter was JPY 2.3106 trillion.

其次，本財年上半年非金融服務業務的自由現金流為負 187 億日元。第二季度末現金及現金等價物餘額為2310.6億日元。

Now I'd like to explain the full year forecast for the consolidated performance for the 2022. First, the sales volume, the unit sales of the Honda Group. Our forecast for Motorcycle operations is 17.5 million units, which is up 100,000 units compared to the previous forecast. In Automobile operations, considering the impact from shortages in parts supply, including semiconductors, our estimates are for 4.2 million units, down 650,000 units.

現在我想解釋一下2022年綜合業績的全年預測。首先，本田集團的銷量，單位銷量。我們對摩托車業務的預測為 1750 萬輛，與之前的預測相比增加了 10 萬輛。在汽車業務方面，考慮到包括半導體在內的零部件供應短缺的影響，我們估計為 420 萬輛，減少 65 萬輛。

In Life Creation operations, our prospects for sales was 6.1 million units. The financial forecast for fiscal year 2022 on a consolidated basis as shown here. To explain the factors affecting the forecast. Pretax profit is expected at JPY 860 billion, down JPY 54 billion compared to last fiscal year. For operating profit, there have been a positive effect from currency effect, sales revenues and model mix, but this was offset by sourcing raw material prices and differences from amount posted as provision for credit losses and other SG&A expenses increased so that the operating profit is expected to be flat as last fiscal year.

在 Life Creation 業務中，我們的銷售前景為 610 萬台。此處顯示的 2022 財年綜合財務預測。解釋影響預測的因素。稅前利潤預計為 8600 億日元，比上一財年減少 540 億日元。對於營業利潤，貨幣效應、銷售收入和車型組合產生了積極影響，但這被採購原材料價格以及與信用損失準備金和其他 SG&A 費用增加的金額差異所抵消，因此營業利潤為預計與上一財年持平。

Equity and earnings of affiliates was because in the previous fiscal year, we had posted a temporary one-off impact of JPY 56.8 billion due to TOB of 3 affiliates. It is expected to be lower by JPY 72.7 billion.

關聯公司的權益和收益是因為在上一財政年度，由於 3 家關聯公司的 TOB，我們發布了 568 億日元的臨時一次性影響。預計將減少727億日元。

Comparing our new forecast to our earlier forecast in August, Pretax profit is expected to be low by JPY 140 billion. In operating profit, though, SG&A reduction and currency effect generated a positive impact, this would be offset by a reduction in earnings due to sales revenue decline and model mix. Now the forecast is for JPY 660 billion, down JPY 120 billion compared to the previous forecast. Lastly, our prospects for capital expenditure, depreciation and R&D expenses are as shown on the slide.

將我們的新預測與我們之前 8 月份的預測相比較，稅前利潤預計將低 1400 億日元。不過，在營業利潤方面，SG&A 減少和貨幣效應產生了積極影響，這將被銷售收入下降和車型組合導致的收益減少所抵消。現在預測為 6600 億日元，比之前的預測減少 1200 億日元。最後，我們的資本支出、折舊和研發費用的前景如幻燈片所示。

This concludes my presentation. Thank you very much.

我的演講到此結束。非常感謝。

[Interpreted] Thank you for your listening. And now we would like to proceed to questions and answers. (Operator Instructions) The first question. [Nihon Kashimbum, Newspaper]. Mr. Abe?

[翻譯]感謝您的收聽。現在我們想繼續提問和回答。 （操作員說明）第一個問題。 [Nihon Kashimbum，報紙]。安倍先生？

[Interpreted] This is Abe from Nikkei. First, about the group sales unit and the revision that you've paid. Well, this is a new number of 4.2 million. What is the accuracy -- the outlook of semiconductor shortage and the prospect being able to secure the semiconductors? What measures you're taking to enhance the prospect? And also, from April-September, the world production, how much reduction in production did you see compared to the original plan?

[翻譯]這是來自日經的安倍。首先，關於集團銷售單位和您支付的修訂。嗯，這是一個新的數字，420 萬。準確度如何——半導體短缺的前景和能夠確保半導體的前景？您正在採取哪些措施來提升前景？還有，從 4 月到 9 月的世界產量，你看到與原計劃相比減產了多少？

The second question. Well, currently, there is shortage of semiconductors. But the profit that has been undermined, be it the automobile reform or investment in EV vehicles, does this not have any negative impact on your future plans? So can you elaborate on your views as to how the current shortage will impact future plans?

第二個問題。那麼，目前，半導體短缺。但是被削弱的利潤，無論是汽車改革還是電動汽車的投資，這對你未來的計劃沒有負面影響嗎？那麼您能否詳細說明您對當前短缺將如何影響未來計劃的看法？

[Interpreted] Well, first, let me talk about the impact of semiconductor shortage. First, last time, some of the suppliers experienced a fire and there was a shortage of supply as well as the low temperature in the United States and lockdown in Southeast Asia. And therefore, we believe that it was a onetime impact, but we decided to reduce our prospect to 4.8 million from the 5 million originally anticipated. But we now see that the shortage, the supply shortage has even more serious and will last longer, the lockdown as likewise. So it's been reduced to 4.2 million.

【解讀】好吧，首先我來說說半導體短缺的影響。首先，上次部分供應商發生火災，供應短缺，美國低溫，東南亞封鎖。因此，我們認為這是一次性的影響，但我們決定將我們的預期從最初預期的 500 萬減少到 480 萬。但是我們現在看到短缺，供應短缺更加嚴重，並且會持續更長時間，封鎖也是如此。因此，它已減少到 420 萬。

Well, we were anticipating that we will see a recovery in supply from the third quarter. But regrettably, because of the long duration of the lockdown in Southeast Asia, we were unable to do so. We are planning to make a recovery from the beginning of next year, but we believe that it will be difficult to achieve the recovery by the end of this fiscal year.

好吧，我們預計我們將看到供應從第三季度開始復蘇。但遺憾的是，由於東南亞封鎖時間長，我們沒能做到。我們計劃從明年年初開始復蘇，但我們認為到本財年末實現復甦將是困難的。

As for the prospect of being able to secure the necessary semiconductors, we have yet -- we have tried to look into this now. As for the future prospects, due to the shortage of semiconductors, we don't know what the challenges will be in the future. We are starting to see improvements now. And we are also working to ensure dual sourcing so as to gain toughness against these incidents and cope with the supply chain situation. So we are currently preparing for next fiscal year. And in addition to recovery production in next fiscal year, our model cycle will be at a very good timing. And therefore, we will do our very best to meet the demands.

至於能夠獲得必要半導體的前景，我們還沒有——我們現在已經試圖研究這個問題。至於未來的前景，由於半導體短缺，我們不知道未來會面臨哪些挑戰。我們現在開始看到改進。我們也在努力確保雙採購，以增強應對這些事件的韌性並應對供應鏈形勢。所以我們目前正在為下一個財政年度做準備。而且除了下一財年恢復生產外，我們的車型週期將處於非常好的時機。因此，我們將盡最大努力滿足需求。

And also about the April-September production, well, I'll explain about that later. And whether the current drop in production will have an impact on our future strategies. That part of your question. As I said earlier, from next fiscal year, we believe that the semiconductor supply will improve. And this fiscal year, well, this negative operating profit, whether this will have an impact -- direct impact on our automobile and reform EV. No, we do not think so.

還有關於四月到九月的製作，好吧，我稍後會解釋。以及目前的產量下降是否會對我們未來的戰略產生影響。你問題的那一部分。正如我之前所說，從下個財政年度開始，我們相信半導體供應將會改善。而本財年，這個負的營業利潤，這是否會產生影響——直接影響我們的汽車和改革電動汽車。不，我們不這麼認為。

[Interpreted] Thank you very much for the Global Production, Corporate Communications will provide an answer later Okay. The next question is from Yomiuri newspaper, [Mr. Katagiri], over to you.

[翻譯] 非常感謝全球製作，稍後企業傳訊會提供答案 好的。下一個問題來自讀賣新聞，[Mr.片桐]，交給你了。

[Interpreted] This is [Katagiri] from Yomiuri newspaper. I hope you can hear me.

【解說】這是讀賣報的【片桐】。我希望你能聽到我的聲音。

[Interpreted] Yes.

[解釋] 是的。

[Interpreted] The impact from our reduced production, Japan and China, it's okay, the -- sorry, it was lower than expected. But in the state, there was a good demand. But probably other than the models, was there any reason for the better demand in the U.S.? And then if you could share with me the regional differences about the demand going forward for the rest of the fiscal year? So I guess, I think, for November, so still the demand is very low, but I just wonder how the demand there are for the rest of the world?

[解釋] 我們減產的影響，日本和中國，沒關係， - 抱歉，低於預期。但在該州，需求量很大。但可能除了模型之外，還有什麼理由可以讓美國的需求更好？然後，您能否與我分享本財年剩餘時間對需求的地區差異？所以我想，我認為，對於 11 月，需求仍然非常低，但我只是想知道世界其他地區的需求如何？

My second question is a prospect for the future. But the raw materials prices and then the risk for China, what do you -- how do you view the risks in China?

我的第二個問題是對未來的展望。但是原材料價格以及中國面臨的風險，您如何看待中國的風險？

[Interpreted] Okay. Thank you. Okay. I'm repeating myself. But with the COVID-19 impact and the harbor traffic congestion, the lockdown in Asia impacting the parts. There are various factors impacting the supply chain. That is the current situation. Particularly, the lockdown in Asia -- those are having a prolonged impact compared to our initial estimate, but we'd like to minimize, continue to minimize the impact we suffer. So stock inventory allocation, and we're reviewing our allocation and production stock situation on a weekly basis. And then we are trying to monitor the supply, particularly semiconductor. And if there's any shortage, we will adjust. We are adjusting production on a global basis. Maybe we need to monitor the balance across different regions and then consider we are doing -- allocating the semiconductors. But the semiconductor, of course, there are many different types. And depending on our parts and components, there were available ones and not so available once that there are differences. So I can't say generally, but basically, our stance is that along with the sales planning we do proper allocation. But as well because different models mix are there. So there are differences between different regions as a result.

[解釋] 好的。謝謝你。好的。我在重複自己。但隨著 COVID-19 的影響和港口交通擁堵，亞洲的封鎖影響了部分地區。影響供應鏈的因素有很多。這就是目前的情況。尤其是亞洲的封鎖——與我們最初的估計相比，這些影響是長期的，但我們希望盡量減少，繼續盡量減少我們遭受的影響。因此，庫存庫存分配，我們每週審查我們的分配和生產庫存情況。然後我們正試圖監控供應，尤其是半導體。如果有任何短缺，我們會調整。我們正在全球範圍內調整生產。也許我們需要監控不同地區的平衡，然後考慮我們正在做的事情——分配半導體。但是半導體，當然有很多不同的類型。並且根據我們的零件和組件，有可用的，一旦出現差異，就不可用了。所以我不能籠統地說，但基本上，我們的立場是，隨著銷售計劃，我們會進行適當的分配。但也因為存在不同的模型組合。因此，不同地區之間存在差異。

But in principle, going forward as well for different reasons, we want to -- we will continue to monitor the sales situation on a weekly basis and continue our timely allocation. That's our strategy. And then for the power shortage in China, currently, as of now for the 2 joint ventures in China. We have not seen any impact due to the power shortage, including their suppliers.

但原則上，出於不同的原因，我們也希望——我們將繼續每週監控銷售情況，並繼續及時分配。這就是我們的策略。然後是中國的電力短缺，目前，截至目前，中國的兩家合資企業。由於電力短缺，我們沒有看到任何影響，包括他們的供應商。

So we will closely monitor the future conditions and then take actions, if needed. But currently, the Guangqi Honda and then the other entity as well. Those are important production sites in those regions -- in these regions. So they are closely monitoring the situation. So we would like to continue to monitor the situation closely together with the central government to monitor the situation.

因此，我們將密切關注未來的情況，然後在需要時採取行動。但目前，廣汽本田和其他實體也是如此。這些是這些地區的重要生產基地——在這些地區。因此，他們正在密切關注局勢。因此，我們希望繼續與中央政府密切監視局勢，以監視局勢。

[Interpreted] The next question, Asahi Shimbun, Mr. [Kameyama], please.

[解釋]下一個問題，朝日新聞，請[龜山]先生。

[Interpreted] Asahi Shimbun newspaper, [Kameyama]. Can you hear me?

[翻譯]朝日新聞，[龜山]。你能聽到我嗎？

[Interpreted] Yes.

[解釋] 是的。

[Interpreted] Two questions. First, you said the group unit sales has been reduced from 4.85 million to 4.2 million. I think that we are already seeing delivery delays now. But as a result of this reduction. What impact will it have on sales? And also how long do you think the current situation will continue? That's the first question.

[解釋] 兩個問題。首先，你說集團單位銷量從485萬減少到420萬。我認為我們現在已經看到交貨延遲。但由於這種減少。對銷售會有什麼影響？還有你認為目前的情況會持續多久？這是第一個問題。

And second question, Well, on the one hand, production is declining. But in the United States, are you seeing a drop in sales incentive? And this is a positive for your performance. So how much incentives have been is incentives -- incentives have been reduced? And what impact has it had on your corporate performance, please?

第二個問題，嗯，一方面，產量正在下降。但在美國，您是否看到銷售激勵下降？這對你的表現是積極的。那麼，有多少激勵措施是激勵措施——激勵措施已經減少了？請問這對貴公司的業績有什麼影響？

[Interpreted] Well, first, I will respond to the unit sales. So the semiconductor supply delay has resulted in us having our customers wait for the delivery of our products. We apologize for the delay. Well, currently, based on the plan that we have for the unit sales, we are in communication to ensure the delivery date. We don't think that we'll see any further delays, but COVID-19 impact.

[解釋] 嗯，首先，我將響應單位銷售。因此，半導體供應延遲導致我們讓客戶等待我們的產品交付。對於延誤，我們深表歉意。那麼，目前，根據我們對單位銷售的計劃，我們正在溝通以確保交貨日期。我們認為我們不會看到任何進一步的延誤，但會產生 COVID-19 的影響。

We have to see what impact will continue. And so observing the situation, we will try everything to try to deliver cars to our customers as early as possible. So as for semiconductors, as I said, from the fourth quarter, we believe that we will start to see a recovery. And we can enter into a recovery production phase. That is all.

我們必須看看會繼續產生什麼樣的影響。因此，觀察情況，我們將盡一切努力儘早將汽車交付給我們的客戶。至於半導體，正如我所說，從第四季度開始，我們相信我們將開始看到復蘇。我們可以進入恢復生產階段。就這些。

[Interpreted] Allow me to explain about the incentives in the United States and what impact it has on our performance, especially the incentives. Because of the large volume and the amount of money spent, this is -- the biggest part is in the United States. But as you know, because of the delay in component supply, production is down. And the inventory dealers are really short. And because of this, in the past, at the dealers, there were these incentives had to be reduced significantly because of that from the unit sales. And this decline, this has turned out to be a positive in North America. Last fiscal year, there's auto rater data. There was about JPY 200,000 incentive per vehicle. But this fiscal year, it will be slightly above half of that, and that the incentive includes the loan incentives. And it cannot offset the drop in sales -- unit sales, but still it is a positive for us.

[解釋] 請允許我解釋一下美國的激勵措施，以及它對我們的績效有什麼影響，尤其是激勵措施。由於數量大，花費的錢多，這是——最大的部分在美國。但如你所知，由於元件供應延遲，產量下降。而且庫存經銷商真的很短缺。正因為如此，過去在經銷商處，由於單位銷售的原因，這些激勵措施不得不大幅減少。這種下降，在北美被證明是積極的。上一財年，有汽車評級數據。每輛車大約有 200,000 日元的獎勵。但本財年，將略高於一半，而且激勵措施包括貸款激勵措施。它不能抵消銷售額的下降——單位銷售額，但對我們來說仍然是積極的。

[Interpreted] Then the next question will be from Nikon Automotive, Mr. [Misitori], please.

[解釋] 那麼下一個問題將來自尼康汽車，請 [Misitori] 先生。

[Interpreted] This is Mr. [Misitori] from Daily Newspaper -- Daily Automobile Newspapers. I have 2 questions. My first one is the raw material price surging. At the beginning of the term, I think you were expecting a JPY 250 billion impact throughout the year. But by changing your forecast, any impact? I mean -- of course, I mean that sourcing crisis will that's something you need to take into consideration. Would you consider repricing the final product? Another one is the RCEP that's starting in January, do you have any expectations for that? Of course, vehicles and local other parts, all of those are localized, I'm sure, in your case, but I would just like to know what your expectations are.

【解說】我是《每日汽車報》的【Misitori】先生。我有 2 個問題。我的第一個是原材料價格飆升。在本學期開始時，我認為您預計全年會產生 2500 億日元的影響。但是通過改變你的預測，有什麼影響嗎？我的意思是——當然，我的意思是採購危機將是你需要考慮的事情。您會考慮重新定價最終產品嗎？另一個是1月份開始的RCEP，你對此有什麼期待嗎？當然，車輛和本地其他部分，所有這些都是本地化的，我敢肯定，就你而言，但我只是想知道你的期望是什麼。

[Interpreted] Okay. Let me answer about the raw material prices. It's true, as Mr. [Misitori] said, for -- at the beginning of this fiscal year, we said that JPY 250 billion to JPY 260 billion, surging higher prices for the full year. And that included the metals -- precious metals has used in the catalyst because the prices have really surged. So that's why we came up with that expectation. But the precious metals unit price has -- of course, there were some intervention for the government, and they are coming down somewhat from the peak.

[解釋] 好的。讓我回答一下原材料價格。確實，正如 [Misitori] 先生所說，因為 - 在本財政年度開始時，我們說 2500 億日元至 2600 億日元，全年價格飆升。這包括金屬——貴金屬已被用作催化劑，因為價格確實飆升。所以這就是我們提出這個期望的原因。但貴金屬單價已經——當然，政府進行了一些干預，並且從高點有所回落。

But aluminum and steel, those other materials for those -- so we are still expecting the higher prices of those. And then so we still incorporated those increasing prices of those other materials. But right now, still we are expecting JPY 260 billion-or-so impact. But any incorporation into the selling prices? No, we cannot transfer all those cost increases to our vehicle prices. But we will monitor what the competitors are doing. And then we might -- we will monitor what the competitors are doing, and we might include the increase of prices. If it's okay with the customers.

但是鋁和鋼，這些其他材料——所以我們仍然期待這些材料的價格更高。因此，我們仍然將那些其他材料的價格上漲納入其中。但目前，我們仍預計會產生 2600 億日元左右的影響。但是任何納入銷售價格？不，我們不能將所有這些成本增加轉移到我們的車輛價格上。但我們會監控競爭對手在做什麼。然後我們可能 - 我們將監控競爭對手的行為，我們可能包括價格上漲。如果客戶沒問題。

Okay. So for RCEP, we are far advanced with the localization because we want to produce where the demand is. So we don't think there's going to be that bad impact, but we will monitor the situation and take actions necessary.

好的。因此，對於 RCEP，我們在本地化方面取得了很大進展，因為我們想在需求所在的地方生產。因此，我們認為不會產生那麼糟糕的影響，但我們會監控情況並採取必要的行動。

[Interpreted] Next, Automotive News. Hans, please?

[解讀]接下來，汽車新聞。漢斯，好嗎？

I have 2 questions. One is about the foreign exchange rate. It's been a real tailwind for a lot of Japanese automakers lately. I think you're keeping it steady for the rest of the fiscal year. Do you expect the exchange rate to maybe help you improve your full year results in the end if it keeps moving in this direction?

我有 2 個問題。一是關於匯率。最近對許多日本汽車製造商來說，這真是順風順水。我認為你在本財年的剩餘時間裡保持穩定。如果匯率繼續朝著這個方向發展，您是否期望匯率最終能幫助您改善全年業績？

And the second question is about your provisions for the shift to electric vehicles. When will we start to see some kind of investment or outlays or announcements from Honda about your investments in batteries or new electric vehicle lines or factories? Already, we hear from other Japanese automakers about their investments in electric vehicles, but yet they don't even have as ambitious plans of total makeover for electric vehicle only as Honda. When can we start to see or expect some announcements or provisions from Honda?

第二個問題是關於你們向電動汽車轉變的規定。我們什麼時候會開始看到本田關於您對電池或新電動汽車生產線或工廠的投資的某種投資或支出或公告？我們已經從其他日本汽車製造商那裡聽到了他們對電動汽車的投資，但他們甚至沒有像本田那樣雄心勃勃的電動汽車全面改造計劃。我們什麼時候可以開始看到或期待本田的一些公告或規定？

(foreign language)

（外語）

[Interpreted] Well, let me try to answer your foreign exchange question. Yes, as Hans says, the foreign exchange, well, on the one hand, we are supplying components in North America. And also, we have to convert the North American profit to Japanese yen.

[解釋] 好吧，讓我試著回答你的外匯問題。是的，正如漢斯所說，外匯，嗯，一方面，我們在北美供應零部件。而且，我們必須將北美利潤轉換為日元。

So the foreign exchange rate has a big impact on us, and the weak yen is favorable for us. And if you compare the forecast last time from the second quarter, it was JPY 105, and it's actually JPY 110 in the second quarter. And in the third quarter after, we have replaced JPY 110 against the dollar. So because of this, we are seeing an impact of some JPY 50 billion on profitability revenue. But as we hear, there -- the quantitative easing being reviewed in the United States and -- so I think that there might be a shift towards a stronger dollar. And this would be a positive.

所以匯率對我們影響很大，日元疲軟對我們有利。如果你比較上次第二季度的預測，它是 105 日元，實際上是 110 日元，第二季度。之後的第三季度，我們已將 110 日元兌美元替換為 110 日元。因此，我們看到約 500 億日元對盈利收入的影響。但正如我們所聽到的那樣——美國正在審查量化寬鬆政策——所以我認為美元可能會轉向走強。這將是積極的。

But when it comes to strong dollar. Well, we're not just doing operation in the U.S. and Japan, we're doing Brazil and supplying United States and also Thailand, et cetera. So the local currencies, if they become weak and then the imported components will see a negative impact. So we have to look at the overall situation. It's not as simple to say that we just look at the U.S. dollar and see the weak yen is advantageous. No. But what we're saying is that we have to be -- well, if there's $1 swing throughout the year, then we see an impact of JPY 112 billion. So in the second half, I hope that we see a tailwind, but it's not as simple as that because we have to think about other currencies other than the U.S. dollar.

但是當談到強勢美元時。好吧，我們不僅在美國和日本開展業務，我們還在巴西開展業務，並為美國和泰國等地提供產品。因此，如果當地貨幣疲軟，那麼進口組件將受到負面影響。所以我們得看大局。並不是說我們只看美元就看弱勢日元有利。不。但我們要說的是，我們必須——好吧，如果全年波動 1 美元，那麼我們會看到 1120 億日元的影響。所以下半年，我希望我們能看到順風順水，但這並不是那麼簡單，因為我們必須考慮美元以外的其他貨幣。

[Interpreted] About the shift to EV and the specific strategies. Well, in regards to transition, yes, battery -- we want to partner with the best for the local. I'm sorry, GM in the U.S. and CATL in China. So we are working with those partners, and we're already making the investments necessary. For other regions as well, we have to look at the local conditions, et cetera, and consider various possibilities, including alliance.

【解讀】關於向電動汽車的轉變和具體策略。好吧，關於過渡，是的，電池——我們希望與當地最好的合作夥伴。對不起，美國的GM和中國的CATL。所以我們正在與這些合作夥伴合作，我們已經在進行必要的投資。對於其他地區，我們也得看當地情況等等，考慮各種可能性，包括結盟。

As for factories, the other day in China, and we announced our EV strategy and, GHAC, WDHAC, we said that we will start to aim towards operation so that we can establish an environment-friendly factory.

至於工廠，前幾天在中國，我們宣布了我們的EV戰略，GHAC，WDHAC，我們說我們將開始以運營為目標，以便我們能夠建立一個環境友好型工廠。

So as for the details, well, I'm not in a position to disclose them now. But we are making such preparations. And when the time comes, we will be able to announce to you is including the investment numbers and what we are doing. But please allow me not to disclose those numbers today.

至於細節，嗯，我現在不能透露。但我們正在做這樣的準備。到時候，我們將能夠向您宣布包括投資數字和我們正在做的事情。但請允許我今天不要透露這些數字。

[Interpreted] Then the next question is from NewsPicks. [Mr. Hiraoka], please?

【解讀】那麼下一個問題來自NewsPicks。 [先生。平岡]，好嗎？

[Interpreted] Okay. This is -- my name is [Hiraoka] from NewsPicks.

[解釋] 好的。這是 -- 我的名字是來自 NewsPicks 的 [Hiraoka]。

[Interpreted] Yes, we can hear you.

[解釋] 是的，我們可以聽到你的聲音。

[Interpreted] Earlier this was mentioned about the semiconductor shortage. I would like to ask a little bit more detailed question. And at the same time, are your actions for the future -- for going forward about the semiconductor shortages, I'm sure -- you said that there are many different types. But when it comes to the most, it is not that the most advanced semiconductors only are used in the automobile. So I believe some ECU contain those 200-micrometer wafer, those legacy types are used as well.

[解釋] 前面提到了半導體短缺。我想問一個更詳細的問題。同時，你對未來的行動——我敢肯定，為了解決半導體短缺問題——你說有很多不同的類型。但說到最多，並不是最先進的半導體只用在汽車上。所以我相信一些 ECU 包含那些 200 微米的晶圓，那些傳統類型也被使用。

So the legacy semiconductors for the semiconductor producers, ROI is low. So they don't have a priority on producing them first. So as the shortages get resolved, that type of production might be a bottleneck? Do you agree with me?

因此，對於半導體生產商而言，傳統半導體的投資回報率很低。所以他們沒有優先生產它們的優先權。那麼隨著短缺問題得到解決，這種類型的生產可能會成為瓶頸嗎？你是否同意我的觀點？

And then another question is, are you trying to do some ECU integration? So that you might come up with a new technology for production like using 28-nanometer or 22-nanometer ECU. Would you be considering integration into those types over like 5 years or so. I'm just wondering if you have that kind of strategy.

然後另一個問題是，您是否嘗試進行一些 ECU 集成？這樣您就可以想出一種新技術進行生產，例如使用 28 納米或 22 納米 ECU。您會考慮在 5 年左右的時間裡集成到這些類型中嗎？我只是想知道你是否有這種策略。

And then my second question is concerning your prospects for the raw materials, resources prices, I think back in 2017, there were some surging prices. So I'm sure that there is a chance that it might go down, but like copper and then rare metals, because people go to electronics, those prices, the demand will be increasing for those structurally. So I believe even if there is some fluctuation in the prices, they will be structurally, the long-term wise, long term, I believe, the prices might go up. I'm just wondering if you have that kind of prospects for the prices.

然後我的第二個問題是關於你們對原材料、資源價格的前景，我認為在 2017 年，有一些價格飆升。所以我確信它有可能下跌，但就像銅和稀有金屬一樣，因為人們轉向電子產品，這些價格，對這些價格的結構性需求將會增加。所以我相信即使價格有一些波動，它們也會是結構性的，長期的明智的，長期的，我相信價格可能會上漲。我只是想知道你是否對價格有這種前景。

[Interpreted] For the semiconductor long-term, of course, we need to think about how we -- how much of our stock we want to hold. And then we might think about like reviewing our contracts, about purchase agreements, also relationship with the semiconductor manufacturers. We need to consider the supply chain and also we need to maybe work with the -- try to increase our toughness against semiconductor supply issues like working with the Tier 1s company. So we are taking those actions at the same time.

[解釋] 對於半導體的長期而言，當然，我們需要考慮我們想要持有多少股票。然後我們可能會考慮審查我們的合同、採購協議以及與半導體製造商的關係。我們需要考慮供應鏈，並且我們可能需要與 - 嘗試增加我們對半導體供應問題的韌性，例如與一級公司合作。因此，我們同時採取了這些行動。

Currently, we are doing tests to use off-the-shelf semiconductor as well. And then -- with that, we are trying to think of different options to obtain semiconductor -- secure semiconductor supplies. Of course, we believe that the semiconductor shortage will continue going forward. So we will continue to take -- and think of and then take actions in order to secure stable supply of semiconductors in different ways. That completes my answer.

目前，我們也在進行測試以使用現成的半導體。然後——我們正試圖考慮不同的選擇來獲得半導體——確保半導體供應。當然，我們相信半導體短缺將繼續向前發展。因此，我們將繼續採取——思考並採取行動，以不同的方式確保半導體的穩定供應。這完成了我的回答。

[Interpreted] Okay. And then about the -- our view on the resource prices. As I mentioned already earlier, it is true that the PGM for the precious metals at the beginning of the fiscal year because of the speculation, there was some -- unit price went really surged high. And depending on the market -- so there are some metals where structurally, the demand could be high. So we do consider the price can stay high structurally or long term. So how do we minimize the impact from that? So maybe we come up with alternative materials for that for certain parts in the car or can we review our specifications so that we can reduce the amount we used and then the purchase contracts can maybe do long-term contracts. And then we will take actions, different actions. And if it has to be, we might transfer the cost increase to the prices. But anyway, so to simply put, we do expect that there's a possibility that the prices go up.

[解釋] 好的。然後是關於我們對資源價格的看法。正如我之前已經提到的，由於投機行為，貴金屬在本財年初的 PGM 確實有一些——單價真的飆升。並且取決於市場——所以有些金屬的結構性需求可能很高。因此，我們確實認為價格可以在結構上或長期保持高位。那麼我們如何將其影響降到最低呢？因此，也許我們可以為汽車中的某些部件提供替代材料，或者我們可以審查我們的規格，以便我們可以減少我們使用的數量，然後採購合同可能會簽訂長期合同。然後我們將採取行動，不同的行動。如果必須這樣，我們可能會將成本增加轉移到價格上。但無論如何，簡單地說，我們確實預計價格有上漲的可能性。

[Interpreted] NHK. Mr. [Tiboli], please.

[解釋] NHK。 [Tiboli] 先生，請。

[Interpreted] [Tiboli] from NHK. About the raw material. This is a follow-up to the previous question. Crude oil price is extremely high now. Of course, steel, aluminum, you gave those examples, but about crude oil price, sorry. I think that this has an impact on resin manufacturers. So how much of an impact does it have? Currently, how much of an impact is it having? And going forward, if this should continue going forward, how much impact are you foreseeing?

[翻譯]來自NHK的[Tiboli]。關於原材料。這是上一個問題的後續。現在原油價格非常高。當然，鋼鐵，鋁，你舉了這些例子，但是關於原油價格，對不起。我認為這對樹脂製造商有影響。那麼它有多大的影響呢？目前，它的影響有多大？展望未來，如果這種情況繼續發展，您預計會有多大影響？

[Interpreted] Well, as we've been saying, yes, oil is about $85 per barrel. So it's extremely high. And resin, you said, yes, some plastic. They are being made from crude oil and the painting, the coating on cars. Again, this is made from crude oil. And currently, the prices have not gone up. But if the crude oil prices continue to surge, it will have an impact. The question then is how will we come up with alternative materials. We are currently researching that and so that we would try to absorb the cost increase coming from the raw material cost increase. So we also tried to offset with reducing the cost in other areas and so as to be able to offer our customers with good products.

[解釋]好吧，正如我們一直在說的，是的，石油約為每桶 85 美元。所以它非常高。還有樹脂，你說，是的，一些塑料。它們是由原油和油漆製成的，汽車上的塗層。同樣，這是由原油製成的。而目前，價格並沒有上漲。但如果原油價格繼續飆升，就會產生影響。那麼問題是我們將如何提出替代材料。我們目前正在對此進行研究，以便我們嘗試吸收原材料成本增加帶來的成本增加。所以我們也試圖通過降低其他領域的成本來抵消，以便能夠為我們的客戶提供好的產品。

Yes, as you say, Mr. [Tiboli], the components that we use and the impact of crude oil price increase is something that we are factoring in.

是的，正如您所說，[Tiboli] 先生，我們使用的組件和原油價格上漲的影響是我們正在考慮的因素。

[Interpreted] The next question from Weekly TOYO KEIZAI. Mr. [Yokoyama], please.

[翻譯] 周刊東洋經濟的下一個問題。 [橫山]先生，請。

[Interpreted] This is [Yokoyama] from TOYO KEIZAI. I have 2 questions as well. First one is the profitability, profit margin in automobile business. So it's a 2.6 percentage at the end of second quarter. So at 1.0, it looks like it's gotten better from 1.0 for the full term, but how do you view that? You talked about the incentive coming down. But I'm just wondering if the automobile business renovation is taking bearing fruit? Or I'm just wondering if the -- maybe the stock has gotten lower and maybe that's what's boosting the profitability. Let me just like, you know, my second question is about the battery. So you said, you are thinking about a lot of our investment. You have not made it clear whom you might team up with in Japan. I'm sure you cannot mention any name. But if you could tell me your approach. And then fourth, so you've got GM states and CATL for China. But do you have any multiple sourcing idea for those markets as well?

【解說】我是東洋經濟的【橫山】。我也有2個問題。第一個是汽車業務的盈利能力，利潤率。因此，在第二季度末為 2.6%。因此，在 1.0 版本中，整個學期的 1.0 版本看起來都變得更好了，但您如何看待呢？你談到了激勵措施的下降。但我只是想知道汽車業務的改造是否正在開花結果？或者我只是想知道 - 也許股票已經走低，也許這就是提高盈利能力的原因。讓我想，你知道，我的第二個問題是關於電池的。所以你說，你正在考慮我們的很多投資。你還沒有明確說明你可以在日本與誰合作。我敢肯定你不能提到任何名字。但如果你能告訴我你的方法。然後是第四個，所以你有通用汽車國家和中國的寧德時代。但是，對於這些市場，您是否也有任何多重採購的想法？

[Interpreted] Okay, about the automobile business operations profitability. As Mr. [Yokoyama] said, the automobile business of -- we consider this a big challenge in our company. So we have been working to renovate, innovate the profitability of automobile business. And then within that, in the production volume, we wanted to optimize the production volume. So in U.K. and Turkey, we have compressed fixed cost in those markets.

【解讀】好的，關於汽車業務運營盈利能力。正如[Yokoyama]先生所說，汽車業務——我們認為這是我們公司的一大挑戰。所以我們一直在努力創新，創新汽車業務的盈利能力。然後在其中，在產量方面，我們想要優化產量。所以在英國和土耳其，我們壓縮了這些市場的固定成本。

And then even against the -- even midst of COVID, we have had some good results. So for U.K., let's say, we have stopped the production already and then the Sayama Plant will close at the -- stop production at the end of December. And also, we have some -- brought in some organizational changes that brought some efficiency in R&D. So the automobile development team used to be in R&D, we have moved it to Honda Motors organization so that we can provide better efficiencies or better products to our customers through lower prices.

然後，即使是在 COVID-19 中，我們也取得了一些不錯的成績。所以對於英國來說，假設我們已經停止生產，然後狹山工廠將在 12 月底停止生產。而且，我們有一些 - 帶來了一些組織變革，帶來了一些研發效率。所以汽車開發團隊以前是做研發的，我們把它搬到了本田汽車公司，這樣我們就可以通過更低的價格為我們的客戶提供更好的效率或更好的產品。

So we have been doing those innovation projects. So we are seeing good benefits. But this would take several years for the full benefits to come through. So by then, we will have solid profitability from automobile business. But if you think about the efficiency of development work and the optimization of production. And then I don't know how -- we still need to consider how we are going to do this together in the EV business. So we will need to -- might wait until next opportunity. So, so far, we have been optimizing and then we have been getting better benefits from optimizing the existing businesses anyway.

所以我們一直在做那些創新項目。所以我們看到了很好的好處。但這需要幾年時間才能獲得全部收益。所以到那時，我們將從汽車業務中獲得穩固的盈利能力。但是，如果您考慮開發工作的效率和生產的優化。然後我不知道如何 - 我們仍然需要考慮我們將如何在電動汽車業務中共同做到這一點。所以我們需要-- 可能會等到下一個機會。所以，到目前為止，我們一直在優化，然後我們已經從優化現有業務中獲得了更好的收益。

And then now the incentive is lower and then the stock level is lower, so profitability is getting higher. But if the -- so do we have to bring back the incentive when the stock comes back? I guess we cannot really say no outright considering the competition. But now we've come up with a good profitability structure, foundation infrastructure. So we probably would have to work better so that we can provide better products, better value to our customers at a lower incentive. So it's not going to be the incentive comes right back just because the stock went back up. So we hope that we continue -- can continue to secure good profits.

然後現在激勵較低，然後庫存水平較低，因此盈利能力越來越高。但是，如果——那麼當股票回來時，我們是否必須帶回激勵措施？我想考慮到競爭，我們不能真正說不。但現在我們已經提出了一個良好的盈利結構，基礎設施。因此，我們可能必須做得更好，以便我們能夠以更低的激勵為我們的客戶提供更好的產品、更好的價值。因此，不會因為股票回升而立即恢復激勵。所以我們希望我們繼續——能夠繼續獲得良好的利潤。

[Interpreted] Okay. About the battery strategy. As we -- as I mentioned earlier, for large markets for China and then states, like I've said, we got GM for states, and then we got CATL for China. Those are the ideas we have. And at the same time, for Japan and for other markets, right now, we are still considering. But our stance to that is that for Japan, we want to produce batteries in Japan and then consume them in Japan, so we can contribute to the local economy. That's the consideration for the Japan market. We don't have any specific thing we can share with you. About the -- and then also for multiple sourcing for the other markets, for states in the U.S., we need to think about the States-China relationship as well. So we need to closely monitor the situation and then make decisions. There was a possibility, I'd say. That's all I can say for now.

[解釋] 好的。關於電池策略。正如我之前提到的，對於中國的大型市場，然後是各州，就像我所說的那樣，我們為各州獲得了通用汽車，然後我們為中國獲得了寧德時代。這些就是我們的想法。同時，對於日本和其他市場，目前我們仍在考慮之中。但我們對此的立場是，對於日本來說，我們希望在日本生產電池，然後在日本消費，這樣我們就可以為當地經濟做出貢獻。這是日本市場的考慮。我們沒有任何具體的事情可以與您分享。關於 - 然後對於其他市場的多重採購，對於美國各州，我們也需要考慮美國與中國的關係。所以我們需要密切關注情況，然後做出決定。有一種可能性，我會說。這就是我現在能說的。

[Interpreted] The next question will be the last question.

[解釋]下一個問題將是最後一個問題。

Ms. [Egami], can you hear us? Please check if you are unmuted. Ms. Egami , can you check whether you are unmuted. We apologize. She does not -- she doesn't seem to be able to unmute. So with this, we would like to conclude today's FY '22 second quarter financial results and presentation material. And what we have presented today will appear on our website. Thank you for joining us today.

[江上]女士，你能聽到我們的聲音嗎？請檢查您是否已取消靜音。江上女士，你能檢查一下你是否被取消靜音嗎？我們抱歉。她沒有——她似乎無法取消靜音。因此，我們想結束今天的 22 財年第二季度財務業績和演示材料。我們今天介紹的內容將出現在我們的網站上。感謝您今天加入我們。

[Portions of this transcript that are marked Interpreted were spoken by an interpreter present on the live call.]

[此成績單中標記為已口譯的部分由現場通話中的口譯員朗讀。]