本田技研 (HMC) 2021 Q4 法說會逐字稿

[Interpreted] Thank you very much for sparing your time to join us here today at the announcement of Honda Motor Company's FY '21 Financial Results. And I'd like to convene the meeting. I'll be serving as the MC. My name is [Okamoto] [from Corporate Communications.

[已解讀] 非常感謝您抽出寶貴的時間參加今天本田汽車公司 21 財年財務業績的發布會。我想召集會議。我將擔任MC。我叫 [Okamoto] [來自企業傳播部。

First, allow me to introduce the executives attending: Executive Vice President, Seiji Kuraishi; Senior Managing Director, Kohei Takeuchi. First, Executive Vice President, Kuraishi, will give the outline of FY '21 financial results and FY '22 financial forecast, please.

首先，請允許我介紹一下出席的高管：執行副總裁Seiji Kuraishi；高級董事總經理 Kohei Takeuchi。首先，Kuraishi 執行副總裁將概述 21 財年的財務業績和 22 財年的財務預測。

[Interpreted] Let me explain FY 2021 financial results. First, regarding for 2021, unit sales of Honda Group for Motorcycle businesses is 15.132 million units; Automobile businesses 4.546 million units; and Life Creation businesses it was 5.623 million units.

[解讀]讓我解釋一下 2021 財年的財務業績。首先，關於2021年，本田集團摩托車業務的銷量為1513.2萬輛；汽車企業454.6萬輛； Life Creation 業務為 562.3 萬台。

I'll explain main market situations next. Total market in Japan dropped from last year due to COVID-19 pandemic impact. N-BOX and others marked strong sales results. However, Honda's sales declined year-on-year. N-BOX series won the top unit sales out of the new launches in mini vehicle segment for 6 years in a row. In March, we launched a new legend in Japan equipped with Honda Sensing Elite, which is the world's first automated driving technology level 3.

接下來我將解釋主要的市場情況。由於 COVID-19 大流行的影響，日本的總市場比去年有所下降。 N-BOX 和其他產品取得了強勁的銷售業績。然而，本田的銷量同比下降。 N-BOX系列連續6年蟬聯微型車新品銷量冠軍。 3月，我們在日本推出了搭載Honda Sensing Elite的全新傳奇，這是全球首款自動駕駛技術level 3。

Total market in FY 2022 still remains uncertain going forward due to the concern of resurging COVID-19. However, Honda expects the results will exceed the year before, thanks to the effective launch of new model Vezel. Total market in the U.S. declined year-on-year. Nevertheless, as the gradual reopening of economic activities since May. The market slowly recovered, though it ended up still below the last year. Honda recovered their businesses mainly with the CR-V and Pilot, finally, being close to the market results.

由於對 COVID-19 捲土重來的擔憂，2022 財年的總市場仍不確定。然而，由於新車型 Vezel 的有效推出，本田預計業績將超過前一年。美國市場總量同比下降。儘管如此，隨著 5 月以來經濟活動的逐步重啟。市場緩慢復甦，但最終仍低於去年。本田主要靠CR-V和Pilot恢復業務，最終接近市場成績。

During the fourth quarter, many of light truck models have upgraded those sales records of the month of the March, outperforming the market growth. Total market by FY 2022 is expected to be better year-on-year, thanks to increasing vaccinations for COVID-19 and efficient economic policies. Honda will enjoy the effective launch of our new model Civic as well as the sales expansions, mainly with the light trucks, so that our results will exceed the level last year.

第四季度，多款輕卡車型刷新了3月份的銷量記錄，跑贏了市場增速。由於 COVID-19 疫苗接種的增加和有效的經濟政策，預計到 2022 財年的總市場將同比增長。本田將享受我們新車型 Civic 的有效推出以及銷售擴張，主要是輕型卡車，因此我們的業績將超過去年的水平。

The total market in China exceeded the level of last year with effective stimulative measures for consumption by the government. Honda enjoyed strong sales of Breeze, CR-V, Vezel and so on. And thanks to the extended EV lineups across leading models, we have marked the record highest sales units so far.

中國市場總量超過上年水平，政府對消費的刺激措施得力。本田Breeze、CR-V、Vezel等車型銷量強勁。由於領先車型的 EV 產品陣容不斷擴大，我們的銷量創下了迄今為止的最高記錄。

Regarding the total market calendar offer -- market of the calendar year 2021, we're expecting the growth from the year before, along with economic recovery. Honda will launch annual models and will further improve EV lineups, aiming for these higher sales results than the preceding year.

關於總市場日曆報價——2021 日曆年的市場，我們預計隨著經濟復甦，將比前一年增長。本田將推出年度車型，並進一步完善 EV 陣容，力爭取得比上一年更高的銷量。

In April, in Shanghai Motor Show (sic) [Auto Shanghai], Honda made a World Premier showing of SUV, e:prototype or the first Honda brand EV in China.

4 月，在上海車展（原文如此）[上海車展]，本田在中國進行了 SUV、e:prototype 或首款本田品牌 EV 的全球首秀。

Moving on to the Motorcycle business. The markets have recovered in China, U.S. and so on. Its largest market of Asia, showing a moderate recovery. However, it resulted below the level last year. Honda's results declined year-on-year. In India, since third quarter, the sales recovered to the level same period last year. In Indonesia, the sales of the fourth quarter have recovered to 83% of the same time last year. China and Pakistan exceeded the level last year. Total market of FY 2022 is expected to grow from the year before despite the concern of the COVID-19 flare up. Honda expects the sales to exceed year-on-year, mainly in Indonesia.

轉向摩托車業務。中國、美國等市場已經復蘇。其最大的亞洲市場呈現溫和復蘇。但是，它的結果低於去年的水平。本田的業績同比下滑。在印度，自第三季度以來，銷售額恢復到去年同期水平。在印尼，第四季度的銷售額已經恢復到去年同期的83%。中國和巴基斯坦超過了去年的水平。儘管擔心 COVID-19 爆發，但預計 2022 財年的總市場將比前一年增長。本田預計銷量將同比增長，主要在印尼。

Let's conclude our financial performance of the FY 2021. Despite declining demands due to COVID-19 impact, we have revisited our business activities to control SG&As and to reduce costs. And with the positive effect of credit loss provisions, in this term, for the financial businesses, the operating profit was JPY 660.2 billion, outperforming the year before. Profit attributable to the owners of the parent was JPY 657.4 billion, also favored by the increased investment profit based on equity method. This slide also presents unit sales and P&L.

讓我們總結一下我們 2021 財年的財務業績。儘管由於 COVID-19 的影響導致需求下降，但我們重新審視了我們的業務活動以控制 SG&A 並降低成本。加上信用損失撥備的積極影響，本季度金融業務的營業利潤為 6602 億日元，好於上年。歸屬於母公司所有者的利潤為 6,574 億日元，這也得益於基於權益法的投資利潤增加。這張幻燈片還展示了單位銷售額和損益表。

And next, with regard to the FY 2022 forecast. We plan to increase unit sales year-on-year across all business areas of Honda Group. Regarding operating profit, albeit the impact by soaring raw material prices and concerns of supply shortages of semiconductors as well as the effect of our credit loss provisions, we will press forward the actions to increase unit sales to optimize our production capabilities to improve efficiencies of product manufacturing and to fortify the existing businesses, expecting to achieve JPY 660 billion, same as this year.

接下來，關於 2022 財年的預測。我們計劃在本田集團的所有業務領域逐年增加單位銷售額。關於營業利潤，儘管受到原材料價格飆升和半導體供應短缺擔憂的影響以及我們的信用損失撥備的影響，我們將推動增加單位銷售額的行動以優化我們的生產能力以提高產品效率製造和強化現有業務，預計實現 6600 億日元，與今年相同。

Regarding the impact of the semiconductor supply shortages, as of now, we are withholding production at some facilities. Supply situations of those parts are changing day by day. However, Honda managed to coordinate the production activities globally so that we can minimize its impact on production throughout the year. For the expected business performance, we plan to defend JPY 660 billion operating profit by catching up with the production, together with our corporate efforts and et cetera.

關於半導體供應短缺的影響，截至目前，我們正在暫停部分工廠的生產。這些零部件的供應情況日新月異。但是，本田設法在全球範圍內協調生產活動，以便我們可以將其對全年生產的影響降至最低。對於預期的經營業績，我們計劃通過追趕生產以及我們的企業努力等來捍衛 6600 億日元的營業利潤。

Speaking of dividends, annual dividends for FY 2021 is JPY 110 per share with a JPY 28 more added to the previous expectation we announced. And the dividends for the fourth quarter is JPY 54 per share. Expected annual dividend for FY 2022 will be JPY 110 per share, same as for FY 2021.

說到股息，2021 財年的年度股息為每股 110 日元，比我們之前宣布的預期高出 28 日元。第四季度的股息為每股 54 日元。 2022 財年的預期年度股息為每股 110 日元，與 2021 財年相同。

Our dividend policy is to keep the consolidated payout which we are aiming 30% despite a changing business environment going forward. We decided to revise them as shown here, making efforts to provide a stable and continuing profit returns to shareholders.

儘管未來的商業環境不斷變化，我們的股息政策是保持綜合派息，我們的目標是 30%。我們決定按此處所示對其進行修改，努力為股東提供穩定和持續的利潤回報。

Now I'd like to hand over to Mr. Takeuchi.

現在我想交給竹內先生。

[Interpreted] (inaudible) giving you the details of the financial results and financial forecasts. Allow me to begin my presentation. First, the fourth quarter results. Honda Group unit sales Motorcycles, despite drop in Indonesia and others, unit sales was up in markets such as India, Pakistan and China.

[解釋]（聽不清）為您提供財務結果和財務預測的詳細信息。請允許我開始我的演講。首先是第四季度的業績。本田集團的摩托車銷量，儘管在印度尼西亞和其他國家有所下降，但在印度、巴基斯坦和中國等市場的銷量卻有所上升。

Automobiles, despite decline in markets such as U.S. there was increase in markets like China. Life Creation saw increase in such markets like China but decrease in the United States.

汽車，儘管美國等市場有所下滑，但中國等市場有所增長。 Life Creation 在中國等市場有所增長，但在美國有所下降。

And next, income statement. Sales revenue was up in all business categories, reaching JPY 3,623.8 billion, up 4.8% from the same period last year. Operating profit due to drop in SG&A and increase in profit attributable to increase in revenue model mix operating profit was JPY 213.2 billion. Share of profit of investments accounted for using the equity method was JPY 68.1 billion due to profit increase derived from increase in sales revenue, model mix in China.

接下來是損益表。所有業務類別的銷售收入均有所增長，達到 36,238 億日元，比去年同期增長 4.8%。由於 SG&A 下降和收入增加導致的利潤增加，營業利潤為 2132 億日元。使用權益法核算的投資利潤份額為 681 億日元，原因是銷售收入增加、中國模式組合帶來的利潤增加。

And moving on to change in profit before income taxes. FY '21 fourth quarter profit before income tax was JPY 255.3 billion, up JPY 251.5 billion from the same quarter last year. Operating profit due to lower SG&A expenses, profit increase coming from a difference in the provision for credit losses and change in revenue model mix, amongst others, operating profit was JPY 213.2 billion, up JPY 218.8 billion from the same period last year.

並繼續改變所得稅前利潤。 21 財年第四季度所得稅前利潤為 2553 億日元，比去年同期增加 2515 億日元。由於 SG&A 費用減少、信貸損失準備金差異和收入模式組合變化導致的營業利潤增加，營業利潤為 2132 億日元，比去年同期增加 2188 億日元。

And please look at Page 14. Sales revenue, operating profit by business segment. Motorcycle business operating profit due to profit increase from increase in unit sales and model mix combined with cost reduction effect, it was JPY 72.2 billion. Next, Automobile sales related operating profit included an Automobile and Financial service business was JPY 140.4 billion combined. Automobile business operating profit due to profit in SG&A and as well as profit increase from unit sales model mix change reached JPY 37.6 billion.

請查看第 14 頁。按業務部門劃分的銷售收入、營業利潤。由於單位銷量和車型組合的增加以及成本降低效應帶來的利潤增加，摩托車業務營業利潤為 722 億日元。其次，包括汽車和金融服務業務在內的汽車銷售相關營業利潤合計為 1,404 億日元。由於 SG&A 利潤以及單位銷售模式組合變化帶來的利潤增加，汽車業務營業利潤達到 376 億日元。

Financial Services business operating profit mainly due to difference in the provision for credit losses was JPY 106.3 billion.

金融服務業務營業利潤主要來自信貸損失準備金的差異，為 1063 億日元。

And next, Life Creation and other businesses recorded operating loss of JPY 3 billion, of which aircraft and aircraft engine operating loss was JPY 7.8 billion.

其次，Life Creation 等業務錄得 30 億日元的經營虧損，其中飛機和飛機發動機經營虧損為 78 億日元。

And next, FY '21, 12 months financial results are as shown. Please look at Page 16, change in profit before income taxes, profit before income taxes was JPY 914 billion, up JPY 124.1 billion year-on-year. Operating profit, though there was a decline in profit due to drop in revenue model mix thanks to cut SG&A difference in the provision for credit losses, cost reduction effect, amongst others, operating profit reached JPY 660.2 billion, up JPY 26.5 billion year-on-year.

接下來，如圖所示，21 財年 12 個月的財務結果。請看第16頁，所得稅前利潤變化，所得稅前利潤為9140億日元，同比增加1241億日元。營業利潤，儘管由於信貸損失撥備的 SG&A 差異減少、成本降低效應等導致收入模式組合下降導致利潤下降，但營業利潤達到 6602 億日元，同比增長 265 億日元-年。

And next, cash flows of non-financial services businesses. Free cash flow was JPY 303.8 billion. Cash and cash equivalents at the end-of-period was JPY 2,528.3 billion. Also, net cash was JPY 2,048.3 billion.

接下來是非金融服務業務的現金流。自由現金流為 3038 億日元。期末現金及現金等價物為25,283億日元。此外，淨現金為 20,483 億日元。

Next, FY '22 consolidated forecast. And beginning with Honda Group unit sales. Motorcycles due to increase in Asia, a major market, we are forecasting 18 million units, up 2.86 million from last fiscal year. Automobiles, though there is concern over semiconductor supply shortage due to market recovery and introduction of new models, we are forecasting 5 million units, up 450,000.

接下來，FY '22 綜合預測。從本田集團的銷量開始。摩托車由於亞洲這個主要市場的增長，我們預測為 1800 萬輛，比上一財年增加 286 萬輛。汽車方面，雖然市場回暖和新車型推出，市場擔心半導體供應短缺，但我們預測500萬台，上調45萬台。

Life Creation business, we are forecasting 5.9 million units, up 270,000 units, mainly coming from North America.

Life Creation業務，我們預測590萬台，上調27萬台，主要來自北美。

FY '22 consolidated financial forecast are shown as on this slide. FY '22 forecast change in profit before income tax. Despite a decrease factors such as increase in SG&A, including a difference in the provision for credit losses and lesser cost reduction effect due to increase in profit coming from revenue model mix exchange, we are forecasting the operating profit to be the same as FY '21, JPY 660 billion. Cost reduction effect is minus JPY 51 billion, but this is mainly due to sharp rise in raw material costs. Meanwhile, we are planning for cost reduction of more than JPY 200 billion and price increase.

這張幻燈片顯示了 22 財年的綜合財務預測。 22 財年預測所得稅前利潤的變化。儘管 SG&A 增加等因素有所減少，包括信用損失準備金的差異和由於收入模型混合交換帶來的利潤增加而導致的成本降低效應較小，但我們預測營業利潤與 21 財年相同, 6600 億日元。成本削減效果為-510 億日元，但這主要是由於原材料成本的急劇上升。同時，我們計劃削減超過 2000 億日元的成本並提高價格。

Lastly, FY '22 capital expenditures, depreciation and R&D forecast are shown on this slide. And this concludes my presentation. Thank you for your attention.

最後，這張幻燈片顯示了 FY '22 的資本支出、折舊和研發預測。我的演講到此結束。感謝您的關注。

[Interpreted] Thank you very much indeed for your attention. And I'd like to now move on to the questions and answers part of the session today. (Operator Instructions)

[已翻譯] 非常感謝您的關注。現在我想繼續今天會議的問答部分。 （操作員說明）

Question 1 from [Mr. Abe] from Nikkei Shimbun newspaper.

來自[先生的問題1安倍] 日經新聞。

[Interpreted] First of all, the operating profit margin for the mobile businesses. Recently, profit margin has been coming down. And it is 1% down too in March 2021. In order to improve the operating profit margin of Automobile businesses, what is major action for that?

[解讀]首先，移動業務的營業利潤率。最近，利潤率一直在下降。 2021年3月也下降了1%。為了提高汽車業務的營業利潤率，有什麼重大舉措？

The other question is purpose the target of electrification. By 2040, zero emissions because will become 100%. And EV SUV those are the zero emission vehicles. And when you switch over to those types of the vehicles, how much investment we do need.

另一個問題是電氣化目標的目的。到 2040 年，零排放將變為 100%。 EV SUV 那些是零排放車輛。當您切換到這些類型的車輛時，我們需要多少投資。

In case of Tesla, they say in order to start-up the 1 EV factory, they take about JPY 100 million or so. What is your prospect for the investment in your case at Honda?

就特斯拉而言，他們表示，為了啟動 1 EV 工廠，他們需要大約 1 億日元左右。您對本田案子的投資前景如何？

[Interpreted] Thank you for your question. So let's talk about operating profit margin for the mobile businesses. For long, we have been trying to solidify the existing businesses. We have actions for that. And last year, across all Honda, we have been pushing forward reviewing of the businesses. And because of that, we are improving our business structures today. And for automobile businesses, we have communicated before. Due to the development organization changes the number of the models and the number of the derivatives are changing. And also we have introduced Honda Active for better efficiency.

[已翻譯] 謝謝你的提問。因此，讓我們談談移動業務的營業利潤率。長期以來，我們一直在努力鞏固現有業務。我們為此採取了行動。去年，在整個本田，我們一直在推進對業務的審查。正因為如此，我們今天正在改進我們的業務結構。而對於汽車業務，我們之前也有過溝通。由於開發組織的變化，模型的數量和衍生品的數量都在變化。我們還引入了 Honda Active 以提高效率。

By 2025, the number of the processes for the development will be down by 30%. That's the actions we are taking now. And in terms of the production, we are trying to optimize them too. And by the end of this fiscal term, we are going to close down the factories in U.K. and Turkey and Sayama factories will move to (inaudible). Thanks to that, we can improve our business efficiency for better operating profit margin.

到 2025 年，開發流程數量將減少 30%。這就是我們現在正在採取的行動。在製作方面，我們也在努力優化它們。到本財政年度結束時，我們將關閉英國和土耳其的工廠，Sayama 工廠將搬到（聽不清）。正因為如此，我們可以提高我們的業務效率以獲得更好的營業利潤率。

And in terms of the second question, the development expenses for the electrification of the Vehicles President, (inaudible), the other day talked about JPY 5 trillion R&D investments in the next 5 years. And in the area of the R&D, we will, of course, define the core technology areas where we are going to be pursuing our independent efforts. And we also try to make more improved efficiency for the current development processes for the models, that way we can get more investment margins.

關於第二個問題，汽車總裁（聽不清）的電氣化開發費用，前幾天談到了未來 5 年 5 萬億日元的研發投資。在研發領域，我們當然會定義我們將獨立努力的核心技術領域。並且我們還嘗試為模型的當前開發過程提高效率，這樣我們可以獲得更多的投資利潤。

And then if we find some areas which is efficiently pursued by the alliance, of course, alliance with other companies could be a choice. And in order to make that possible, we need to optimize the production system and make improvements for the efficient production this way, we can improve the efficiency of all, including the developments.

然後，如果我們找到聯盟有效追求的一些領域，當然，與其他公司的聯盟可能是一種選擇。為了使之成為可能，我們需要優化生產系統並通過這種方式改進高效生產，我們可以提高所有人的效率，包括開發。

And in terms of the investments, battery procurement is one of the issues that we believe to be a major one. And GM in the North American and CATL in China. Those are the areas that we are investing with already. And for other kind of technologies, we were looking to the technology trends and particularities of the regions and so on so that we can pursue the appropriate alliances. And I cannot share with you how much we're going to need for the electrification processes. However, 6 -- or JPY 10 trillion in 5 years, those will be the basic idea, as we shared before.

就投資而言，電池採購是我們認為的主要問題之一。以及北美的通用汽車和中國的寧德時代。這些是我們已經在投資的領域。對於其他類型的技術，我們正在研究該地區的技術趨勢和特殊性等，以便我們可以尋求合適的聯盟。我無法與您分享電氣化過程需要多少。但是，正如我們之前分享的那樣，6 年或 5 年內達到 10 萬億日元，這將是基本想法。

[Interpreted] And next question (inaudible)

[解釋] 下一個問題（聽不清）

[Interpreted] Katagiri from (inaudible) newspaper. I have several questions. First, so you say that there's increase in profit and you attribute this to the cost reduction of sales, amongst others, SG&A and others. And can you be more specific as to where the profit is coming. And also, you are expecting a further cost reduction for next fiscal year. Can you be more specific about next fiscal year? And where you say that you're expecting JPY 200 billion or more cost reduction and also about R&D expenditure. And compared to recently, it's 140 -- so it's higher than the past, JPY 840 billion and also for safety purposes, electrification and safety. Can you be more specific as to what you'll be doing?

[翻譯] 來自（聽不清）報紙的 Katagiri。我有幾個問題。首先，你說利潤增加了，你將這歸因於銷售成本的降低，其中包括 SG&A 等。您能否更具體地說明利潤的來源。而且，您預計下一財年會進一步降低成本。您能否更具體地說明下一個財政年度？你說你期望 2000 億日元或更多的成本削減以及研發支出。與最近相比，它是 140——所以它比過去高，8400 億日元，而且出於安全目的，電氣化和安全。你能更具體地說明你要做什麼嗎？

[Interpreted] Mr. Takeuchi will answer these questions.

【解讀】竹內先生將為您解答這些問題。

About the SG&A and what cost reduction we have achieved and will be achieving. Well, last fiscal year, the SG&A was an area where we have the financial business. And well, compared to the previous year, when the U.S. unemployment rate compared to that, the provision back then was increased for the credit losses. But last fiscal year, thanks to the U.S. government support. As well as the fact that the unemployment rate improved, we were able to reduce the provision. And also aside from that, our business activities had to be held down due to COVID-19. And given pandemic in the different countries, our workers, associates worked hard to reduce the cost. And thanks to that, we saw the SG&A reduced year-on-year for FY '21.

關於 SG&A 以及我們已經實現和將要實現的成本降低。好吧，上個財政年度，SG&A 是我們開展金融業務的領域。好吧，與前一年相比，當美國失業率與之相比時，當時的信貸損失撥備增加了。不過上個財年，得益於美國政府的支持。除了失業率有所改善之外，我們還能夠減少撥款。除此之外，由於 COVID-19，我們的業務活動不得不暫停。鑑於不同國家的流行病，我們的工人、同事努力工作以降低成本。由於這一點，我們看到 21 財年的 SG&A 同比減少。

And about the provision for credit losses, aside from that, even if we were to exclude that we believe that we were able to achieve SG&A reduction of JPY 200 billion. And about cost reduction and also the effect of price increase, we're looking at both these and the automobiles, motorcycles and live creation products, and we want to focus on making our manufacturing efficient and together with their suppliers, workout where we can reduce the cost. And I think that these efforts as well as the price increase have produced this result.

關於信貸損失準備金，除此之外，即使我們排除，我們也相信我們能夠實現 2000 億日元的 SG&A 減少。關於降低成本以及價格上漲的影響，我們正在研究這些以及汽車、摩托車和現場創作產品，我們希望專注於提高我們的製造效率，並與他們的供應商一起，努力降低成本成本。我認為這些努力以及價格上漲產生了這個結果。

About R&D, we are expecting JPY 840 billion. And as for R&D expenditure, it was JPY 780 billion the year before. And therefore, a JPY 840 billion is high. And before that, it was JPY 820 billion. So it is the highest on record. That is true. But this is because the existing -- the internal combustion engine is going to be electrified. We need money, and we're shifting towards electrification. I cannot give the breakdown of how much will be spent on what. But as a result of this shift and also connect, we are investing or spending JPY 840 billion for R&D. But as Kuraishi said, it's not going to be purely used for R&D for alone, but we also want to rely on alliances. And that is the reason why we're are planning for JPY 840 billion R&D expenditure for FY '22. Thank you.

關於研發，我們預計 8400 億日元。至於研發支出，前一年為 7800 億日元。因此，8400 億日元很高。在此之前，它是 8200 億日元。所以這是有記錄以來的最高值。那是真實的。但這是因為現有的 - 內燃機將被電氣化。我們需要錢，我們正在轉向電氣化。我無法詳細說明將花費多少。但由於這種轉變和聯繫，我們正在投資或支出 8400 億日元用於研發。但是就像倉石說的，不會單純的一個人做研發，我們也想靠聯盟。這就是我們計劃在 22 財年投入 8400 億日元研發支出的原因。謝謝你。

[Interpreted] From Asahi Shimbun newspaper, [Mr. Kamiyama], please.

[解讀]來自朝日新聞報，[先生。神山]，請。

[Interpreted] [Kamiyama] from Asahi newspaper. I have 2 questions. For the FY '21, I have a question about that. In terms of the sales unit, you're expecting to grow them in the U.S. and China in March 2022 period, FY '20 next year. And I think that is maybe because of the rebounding or bound from last year and for China, how much growth or percentage growth are you expecting in China?

[翻譯] [Kamiyama] 來自朝日新聞。我有兩個問題。對於 21 財年，我有一個問題。就銷售部門而言，您預計將在 2022 年 3 月期間（即明年的 20 財年）在美國和中國實現增長。我認為這可能是因為去年的反彈或反彈，對於中國，您預計中國的增長或增長百分比是多少？

And question two, so March 2022, sales is expecting to grow, but the profit level is down. Including the net profit. And of course, that includes the soaring raw material prices and the semiconductor effect and how much of effect included in those results?

問題二，到 2022 年 3 月，銷售額預計會增長，但利潤水平會下降。包括淨利潤。當然，這包括原材料價格飆升和半導體效應，以及這些結果中包含的影響有多大？

[Interpreted] So I can talk about sales, and you can talk about the profits. So JPY 15 trillion expectations for next year and JPY 660 billion operating profit expectations next year. So let me explain about it. As I said earlier, cost reduction area, negative JPY 51 billion. That is a difference, as we said earlier. More than JPY 200 billion can be reduced by the cost reduction efforts as well as the price increases and then with that all included, actually, you can find out the effect by the raw material price increases as much as the gap between the 2.

【解讀】所以我可以談銷量，你可以談利潤。因此明年的預期為 15 萬億日元，明年的營業利潤預期為 6600 億日元。所以讓我解釋一下。正如我之前所說，成本削減領域為負 510 億日元。正如我們之前所說，這是一個區別。通過降低成本的努力以及價格上漲可以減少超過 2000 億日元，然後將其全部包括在內，實際上，您可以發現原材料價格上漲的影響與兩者之間的差距一樣大。

And in terms of the semiconductor effect, as of now, in the first quarter, as of now, today, we are changing number of days in operations, and we are trying to reduce the type of the models. We're producing this way we can try to contain its effect in terms of the sales. And of course, as much as we are trying as much as we can do, but we can also cover that by like for instance well, but also JPY 660 billion, as I said earlier.

就半導體效應而言，截至目前，在第一季度，截至目前，今天，我們正在改變運營天數，我們正在努力減少模型的類型。我們正在以這種方式生產，我們可以嘗試在銷售方面控制它的影響。當然，我們會盡可能多地嘗試，但我們也可以像我之前所說的那樣支付 6600 億日元。

Financial credit loss provisions. So it was booked up in previous years, and then it was written off, and then that is causing effect and unemployment rate is involved in this factor and also the subsidies by the governments are going to be provided until Autumn, sometime like that. And for those ones, JPY 110 billion is going to be included for the negative effect and then it is not just the raw material prices, but JPY 660 billion is results based on the combination of all those efforts.

金融信用損失準備金。所以它在前幾年被記賬，然後被註銷，然後造成影響，失業率與這個因素有關，而且政府的補貼將提供到秋天，有時是這樣。對於那些，1100 億日元的負面影響將包括在內，這不僅僅是原材料價格，而是 6600 億日元是基於所有這些努力的綜合結果。

And in terms of unit sales, the COVID-19 impact is getting elevated globally today, and demand is coming down, thanks to that today. And in the United States, in April, the vaccinations going on smoothly and Biden administration is providing a good economic measures causing higher demands. And we have 111% of the market growth. Today year-on-year in the end of April. And of course, semiconductor effect still continues in this stage too. And perhaps the growth rate still uncertain because of that. And in China, COVID-19 actually was started in China. However, they have no impact whatsoever nowadays.

就單位銷售額而言，今天 COVID-19 的影響在全球範圍內正在上升，而需求正在下降，這要歸功於今天。而在美國，4月份疫苗接種進展順利，拜登政府提供了良好的經濟措施，引發了更高的需求。我們有 111% 的市場增長。今天同比四月底。當然，半導體效應也在這個階段繼續存在。也許正因為如此，增長率仍然不確定。在中國，COVID-19 實際上是在中國開始的。但是，它們現在沒有任何影響。

And in April, they had a good business. However, they also are hit by the semiconductor situations. And we do have the impact in out factories as well. And depending on how it goes going forward, its effect on the business will change. However, as of now, Chinese government says that the total market will be 2.1 billion cars. And this -- they're expecting to have the growth by 8% -- 108% of the last year. And we tried to do our business to be in line with the market growth. And of course, we have to pay attention to the semiconductor situation as well as the COVID-19 in the global business situations. Thank you.

在四月份，他們的生意很好。然而，他們也受到半導體形勢的打擊。我們也確實對我們的工廠產生了影響。根據它的發展方式，它對業務的影響將會發生變化。然而，截至目前，中國政府表示，整個市場將達到 21 億輛汽車。而這 - 他們預計將增長 8% - 去年的 108%。我們努力使我們的業務與市場增長保持一致。當然，我們必須關注半導體形勢以及全球商業形勢中的 COVID-19。謝謝你。

[Interpreted] Next question. (inaudible), please.

[解釋] 下一個問題。 （聽不清），請。

[Interpreted] (inaudible), about the unit sales once again at (inaudible). You say -- well, I'm sorry, it's JPY 5 million. And because of the soaring raw material costs and semiconductor shortage, to what extent have you measured these impacts in coming up with this number? Can you give the breakdown of the impact of raw material and semiconductor shortage?

[解釋]（聽不清），關於單位銷售額再次在（聽不清）。你說——嗯，對不起，是 500 萬日元。由於原材料成本飆升和半導體短缺，您在得出這個數字時在多大程度上衡量了這些影響？您能否詳細說明原材料和半導體短缺的影響？

[Interpreted] So basically, for the Automobiles, 5 million units, we have factored in the impact of the rise in raw material cost and semiconductor shortage. Let me explain about semiconductors more in detail. From the end of last year, due to COVID-19, we have been suspending our production, had problems with logistics and the industry on the whole had a shortage of components procurement, especially semiconductors, because there was a growing demand for games. And there was a shortage in supply of semiconductors. We, for a stable supply, we, including overseas with multiple sources have tried to secure source the semiconductor, so as to have appropriate inventory.

[解讀]所以基本上，對於汽車，500萬輛，我們已經考慮了原材料成本上漲和半導體短缺的影響。讓我更詳細地解釋一下半導體。從去年年底開始，由於 COVID-19，我們一直在暫停生產，物流出現問題，整個行業的元器件採購短缺，尤其是半導體，因為對遊戲的需求不斷增長。半導體供應短缺。我們，為了穩定的供應，我們，包括海外有多個來源，都試圖確保半導體的來源，以便有適當的庫存。

And for each of the components, we tried to secure optimum inventory. Initially, the semiconductor manufacturers tried to increase production and we tried to accommodate. And so -- and we thought that there would not be a major impact. But then Texas was hit by a storm. And then the semiconductor -- 1 semiconductor was hit by a fire outbreak. And unfortunately, in the first half for this fiscal year, we will still continue to see an impact of semiconductor shortage. But we'll try to minimize the impact, we're continuing to make effort towards this end. And currently, we don't know what the situation will be. It's fluid.

對於每個組件，我們都試圖確保最佳庫存。最初，半導體製造商試圖增加產量，我們試圖適應。所以 - 我們認為不會產生重大影響。但隨後得克薩斯州遭到風暴襲擊。然後是半導體——1 個半導體發生了火災。不幸的是，在本財年上半年，我們仍將繼續看到半導體短缺的影響。但我們會盡量減少影響，我們會繼續為此做出努力。目前，我們不知道情況會怎樣。它是流動的。

But in the second half, we think we can recover. And therefore, we can minimize the impact throughout the -- at the end of the year. And even if there is an impact, we from our corporate effort, as explained, we will be able to defend the budget that we explained. And it's based on that premise that we have put together this budget for FY '22.

但在下半場，我們認為我們可以恢復。因此，我們可以在年底將影響降至最低。即使有影響，正如所解釋的那樣，通過我們的企業努力，我們將能夠捍衛我們解釋的預算。正是基於這個前提，我們為 22 財年編制了這份預算。

[Interpreted] Next question. (inaudible) Xi, [Mr. Okema], please.

[解釋] 下一個問題。 （聽不清）習，[先生。 Okema]，請。

[Interpreted] (inaudible) from (inaudible) Xi . Question 1 about North America. So according to the survey I have, the number of days in stocks kind of pressured at the moment, very tight. And is that because of the semiconductor situation? Or is that because of the market going so well and you're selling so well and these stocks are really tight. Is that the situation? So please let me understand how you take this now.

[解釋]（聽不清）來自（聽不清）Xi。關於北美的問題 1。所以根據我的調查，目前庫存天數有點壓力，非常緊張。那是因為半導體的情況嗎？或者是因為市場發展得很好，你賣得很好，這些庫存真的很緊。是這種情況嗎？因此，請讓我了解您現在的看法。

And in terms of the battery procurement, you have your alliance partner in North America and China too and including Japan, you probably have a plan or idea about a different markets in different regions, including Japan, for instance, please tell your ideas about it.

在電池採購方面，你們在北美和中國也有你們的聯盟夥伴，包括日本，你們可能對不同地區的不同市場有計劃或想法，比如日本，請說說你的想法.

[Interpreted] So in terms of the inventory situations in North America, in the first place, since last year due to the COVID-19, every company, OEMs needed to do the adjustment of the production days. And because of that, of course, we have the effect by that on the inventory level today. And of course, every company has a different reason for that. And semiconductor insufficiency, of course, cause that as well. And we had some stocks of semiconductors, thankfully, and we didn't have the immediate impact by that.

[解讀]因此，就北美的庫存情況而言，首先，自去年以來由於COVID-19，每個公司，原始設備製造商都需要對生產天數進行調整。因此，當然，我們今天的庫存水平受到了影響。當然，每個公司都有不同的理由。當然，半導體的不足也是造成這種情況的原因。謝天謝地，我們有一些半導體庫存，我們並沒有立即受到影響。

However, going forward, if the semiconductor shortage continues on and on then the tight stock situation may continue too. And 33 days, that is the average stock days that is the average in the North American ours is about 50 days. And semiconductor situation is now being adjusted in the market. And then we will look at the inventory levels and supplies as well to try to alleviate the situation. But in the second half, we will try to recover, then -- so this way, we can achieve a JPY 5 billion target finally.

然而，展望未來，如果半導體短缺持續下去，那麼庫存緊張的情況也可能會持續下去。而33天，也就是我們北美的平均庫存天數是50天左右。而半導體市場的形勢正在調整中。然後我們將查看庫存水平和供應，以試圖緩解這種情況。但在下半年，我們將努力恢復，然後——這樣，我們最終可以實現 50 億日元的目標。

In the terms of the battery are sourcing, GM in North America and CTL -- CATL in China, those are the partners to try to get the batteries. And of course, batteries are one of those components, and we need to work on to CD of those, meaning that we might have a different sourcing in different regions, though we have not defined who as yet. But of course, we do have such ideas, as you said.

在電池採購方面，北美的通用汽車和中國的CTL——寧德時代，這些都是試圖獲得電池的合作夥伴。當然，電池是這些組件之一，我們需要對這些組件進行 CD，這意味著我們可能在不同地區有不同的來源，儘管我們還沒有定義誰。當然，正如您所說，我們確實有這樣的想法。

[Interpreted] Next question. From Reuters, Mr. Shiraki -- Ms. Shiraki, excuse me.

[解釋] 下一個問題。來自路透社的白木先生——白木女士，打擾一下。

[Interpreted] This is Shiraki from Reuters. About India's production. Let me confirm the situation, including the outlook. But currently, the 4 motorcycle factories are closed down until tomorrow. And also, the automobile factories are also been suspended. And with the spread of the pandemic, how are you going to try to secure the production of motorcycles, automobile production in India. And how do you see the impact on the units that can be produced? Well, it's very difficult to predict, but what is your premise on doing production in India.

[解讀] 我是路透社的白木。關於印度的生產。讓我確認一下情況，包括前景。但目前，這4家摩托車廠都停產到明天。而且，汽車廠也停工了。隨著大流行病的蔓延，您將如何確保印度的摩托車和汽車生產。您如何看待對可生產單位的影響？好吧，這很難預測，但你在印度生產的前提是什麼。

[Interpreted] Well, about the situation in India. Well, our motorcycle plant -- plants due to the second wave of COVID-19 and also the lock down that was introduced domestically. Our dealers also. About 80% of our dealers in India closed down. And from May 1, 4 factories have been closed and we'll suspend production until May 18. That is our current situation. Well, to be candid with you, we really don't know what will happen. And we cannot predict, but we have to observe what happens to the pandemic, and we have to ensure the safety of our associates.

【解讀】嗯，關於印度的情況。好吧，我們的摩托車工廠——由於第二波 COVID-19 疫情以及國內實行的封鎖措施而生產的工廠。我們的經銷商也是。我們在印度大約 80% 的經銷商倒閉了。從5月1日開始，4家工廠停工，停產到5月18日，這是我們目前的情況。好吧，坦率地說，我們真的不知道會發生什麼。我們無法預測，但我們必須觀察大流行的情況，我們必須確保我們同事的安全。

And with that in mind, we need to consider when to resume production. About the impact on production units, we really do not know for sure at this point in time. But for India, actually, last year, there was a big impact. But in the second half. We saw the recovery was even better than we expected. And thanks to partially the government's (inaudible) farming measures.

考慮到這一點，我們需要考慮何時恢復生產。關於對生產單位的影響，我們目前確實無法確定。但對印度來說，實際上，去年，有很大的影響。但是在下半場。我們看到復蘇比我們預期的還要好。部分歸功於政府的（聽不清）農業措施。

But from the end of March, the second wave hit and currently, the medical system has been totally overwhelmed. And therefore, we have to keep an eye on what is happening in India. And carefully consider what needs to be done.

但從3月底開始，第二波來襲，目前醫療系統已經完全不堪重負。因此，我們必須密切關注印度正在發生的事情。並仔細考慮需要做什麼。

[Interpreted] Wall Street Journal, Mr. Sean McLain, please.

[翻譯] 華爾街日報，Sean McLain 先生，請。

Sean McLain from Wall Street Journal. I'm going to ask in English, if that's okay.

華爾街日報的肖恩麥克萊恩。我會用英語問，如果可以的話。

Yes, please.

是的，請。

Two questions. One, if you could give us a number in terms of lost production, from last year as a result of the semiconductor shortage. And if you could try to give us a number for how much production you think will be lost in this current fiscal year as a result of the shortage?

兩個問題。第一，如果你能給我們一個關於去年由於半導體短缺導致的生產損失的數字。如果你能試著給我們一個數字，你認為在本財政年度會因短缺而損失多少產量？

And secondly, if you could give us a high-level sort of idea of where you think your alliance with General Motors is headed. You seem to be cooperating on more and more areas and how close should we expect GM and Honda to become in the future?

其次，如果你能給我們一個高層次的想法，你認為你與通用汽車的聯盟將走向何方。你們似乎在越來越多的領域進行合作，我們應該期望通用汽車和本田在未來變得多親密？

(foreign language)

（外語）

[Interpreted] So in terms of semiconductor effect, we had 100,000 units affected last year. And in the current year, as I said before, the effect it continues in the first half and in the second half, we are going to catch up. And as of now, I expect that all those loss effect on the production will be as traded off or set off in the end of the year. And with the GM, actually, 2 companies are taking actions for the [FC] and other areas automated driving support. And we have announced collaborations in North America last year, and we are continuing our discussions together.

[解讀] 因此，就半導體影響而言，去年我們有 100,000 台受到影響。而在今年，正如我之前所說，它的影響將在上半年和下半年繼續，我們將迎頭趕上。截至目前，我預計所有這些對生產的損失影響都將在年底進行權衡或抵消。而對於通用汽車，實際上，有 2 家公司正在為 [FC] 和其他領域的自動駕駛支持採取行動。我們去年宣布了在北美的合作，我們正在繼續共同討論。

And electrification strategy is supported by the GM alliance that is one of the pillars supporting that strategy. And for that purpose, we are going to try to find out efficient collaboration going forward. And in specific, I cannot give you an idea as yet. And going forward, when we are ready to share with us more specifics, we will, of course, do that.

電氣化戰略得到通用汽車聯盟的支持，該聯盟是支持該戰略的支柱之一。為此，我們將努力尋找未來有效的合作方式。具體來說，我現在還不能給你一個想法。展望未來，當我們準備好與我們分享更多細節時，我們當然會這樣做。

[Interpreted] Any other questions. Thank you. If not, and with this, we would like to conclude today's presentation on our financial results. As for the materials, they will be posted on our web page. So please access our web page. Once again, we thank you for your attendance.

[解釋] 任何其他問題。謝謝你。如果沒有，我們想以此結束今天對我們財務業績的介紹。至於材料，它們將張貼在我們的網頁上。所以請訪問我們的網頁。再次感謝您的出席。

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

[此抄本中標記為已翻譯的部分是由現場通話中在場的口譯員說的。]