本田技研 (HMC) 2023 Q4 法說會逐字稿

I thank you very much for taking time out of your busy schedule to attend our press conference. We would now like to start Honda Motor Company's Press Conference for Financial Results for Fiscal Year to March 2023.

非常感謝您在百忙之中抽出時間來參加我們的新聞發布會。我們現在要開始本田汽車公司截至 2023 年 3 月的財政年度財務業績新聞發布會。

The COVID-19 category has been changed to Class 5. We have decided to continue to hold this briefing online as well.

COVID-19 類別已更改為第 5 類。我們也決定繼續在線舉行此簡報會。

First of all, allow me to introduce the attendees today. We have Mr. Shinji Aoyama, Director, Executive Vice President and Representative Executive Officer, Chief Operating Officer.

首先請允許我介紹一下今天的與會者。我們有 Shinji Aoyama 先生，董事、執行副總裁兼代表執行官、首席運營官。

This is Aoyama. Good to see you.

這是青山。很高興見到你。

And then we also have Mr. Eiji Fujimura, Executive Officer, Chief Financial Officer.

然後還有執行官兼首席財務官 Eiji Fujimura 先生。

This is Fujimura. Good to see you, everybody.

這是藤村。很高興見到你，大家。

And now Mr. Aoyama will first present an overview of the financial results of financial year to March 2023 and forecast for FY '24. And then Mr. Fujimura will present the details.

現在，Aoyama 先生將首先概述截至 2023 年 3 月的財政年度的財務業績以及對 24 財年的預測。然後藤村先生將介紹細節。

Over to you, Mr. Aoyama.

交給你了，青山先生。

Good afternoon, everyone. I am Aoyama, I'm the Executive Vice President, starting April. Thank you very much for your participation today despite your busy schedule. So let me explain the financial results of the FY 2023 and a summary of FY 2024 forecast.

大家下午好。我是青山，我是執行副總裁，從四月開始。非常感謝您今天百忙之中的參與。因此，讓我解釋一下 2023 財年的財務業績和 2024 財年預測的摘要。

Starting with the highlight of the financial results. I will explain the progress of the profitability structures and its reinforcement.

從財務業績的亮點開始。我將解釋盈利結構的進展及其強化。

According to the FY 2023 results, we sold 3.69 million cars, though the previous expectations were set at 3.85 million. Operating profit was JPY 839.3 billion, whereas the previous forecast was JPY 870 billion. The efforts on fixed cost reduction and pricing that reflects the improved values of the product and so on helped us strengthen our operational structures. As a result, we maintained the operating profit margin above 5%, which is the level of the previous forecast.

根據 2023 財年的業績，我們售出了 369 萬輛汽車，而此前的預期是 385 萬輛。營業利潤為 8393 億日元，而此前的預測為 8700 億日元。降低固定成本和反映產品價值提高的定價等方面的努力幫助我們加強了我們的運營結構。因此，我們將營業利潤率維持在 5% 以上，這是之前預測的水平。

As for the FY 2024 forecast, we will further improve the operational structures that we have built up until now, and we will strengthen supply chains, such as the stable procurement of the semiconductors will improve operating ratio of the factories. And we will plan to sell 4.35 million cars with expected operating profit of JPY 1 trillion, which will be the best profit ever.

至於2024財年的預測，我們將進一步改善迄今為止建立的運營結構，我們將加強供應鏈，例如穩定的半導體採購將提高工廠的運營率。我們將計劃銷售 435 萬輛汽車，預計營業利潤為 1 萬億日元，這將是有史以來最好的利潤。

Cash generated will be invested to provide the resources for electrification going forward, and we will stay engaged in shareholder return programs. In specific, in FY 2024, we plan to increase the dividend to JPY 150 per share, which will be the highest ever. In addition, in the Board of Directors meeting today, we have made a decision for share buybacks for the amount of JPY 200 billion. Towards FY 2026, we will continue to reinforce our personal structures all together in unity, aiming to achieve the operating profit margin above 7%.

產生的現金將投資於為未來的電氣化提供資源，我們將繼續參與股東回報計劃。具體而言，在 2024 財年，我們計劃將股息提高到每股 150 日元，這將是有史以來最高的。此外，在今天的董事會會議上，我們決定回購 2000 億日元的股份。邁向2026財年，我們將繼續團結一致加強我們的人員結構，旨在實現7%以上的營業利潤率。

Let me continue to explain the Automobile businesses' situations in main markets. In FY 2023, there had been a major impact of COVID-19 pandemic in China, and the supply shortage of semiconductors until third quarter, due to which, the unit sales dropped below the year before. During the 3 months of our fourth quarter, supply situations of the semiconductors gradually improved, thus the unit sales resulted better year-on-year in the United States. In China, the tax protection measures ended, which caused a negative impact on the unit sales, thus the results dropped significantly lower year-on-year.

下面我繼續解釋一下汽車企業在主要市場的情況。 2023 財年，中國受到 COVID-19 大流行的重大影響，直到第三季度半導體供應短缺，因此單位銷售額低於去年同期。在我們第四季度的 3 個月中，半導體供應情況逐漸改善，因此美國的單位銷售量同比增長。在中國，稅收保護措施結束，對單位銷售額造成負面影響，因此業績同比大幅下降。

In terms of the unit sales of FY 2024, although the outlook in China is rather unclear, in the global market, we can enjoy the favorable model cycles that continues from last year. And we'll aim to expand our unit sales based on the resumption of the supplies in the market, thanks to the improved operating ratio of the forecast.

就 2024 財年的銷量而言，雖然中國的前景不明朗，但在全球市場，我們可以享受延續去年的有利車型週期。由於預測的運營比率提高，我們的目標是根據市場供應的恢復來擴大我們的單位銷售。

Regarding our actions for electrification, we set out discussions with POSCO for a comprehensive partnership in order for achieving carbon neutrality. In the Shanghai Motor Show in China, we exhibited the world premiere of the second set of the e:N series called e:NP2 prototype and e:NS2 prototype, as well as the third set of the concept model e:NSUV Xu.

關於我們的電氣化行動，我們與 POSCO 就全面合作夥伴關係展開討論，以實現碳中和。在中國上海車展上，我們展出了全球首發的e:N系列第二台e:NP2原型車和e:NS2原型車，以及第三台概念車e:NSUV Xu。

Next, moving on to the motorcycle business situations. For the FY 2023, the unit sales increased year-on-year in the main markets. During 3 months of the fourth quarter, the unit sales dropped year-on-year in India and Vietnam. However, in Indonesia, although we had the supply shortages of the semiconductors, we were pleased the model offering and -- utilized alternative parts, which then helped to significantly increase of unit sales. Thus the total result in better than the last year, year-on-year. As for the unit sales of FY 2024, we plan to achieve higher results year-on-year based on increasing unit sales in India and Indonesia.

接下來，繼續討論摩托車業務情況。 2023 財年，主要市場的銷量同比增長。第四季度的3個月中，印度和越南的銷量同比下降。然而，在印度尼西亞，儘管我們的半導體供應短缺，但我們很高興提供模型並使用替代零件，這有助於顯著增加單位銷售額。因此總成績同比好於去年。至於 2024 財年的單位銷售額，我們計劃在印度和印度尼西亞的單位銷售額增加的基礎上實現同比更高的業績。

Let's look at the overview of the consolidated the financial results of FY 2023. In addition to the reduction in unit sales and the production of [automobiles] due to the impact by semiconductor shortages and COVID-19 pandemic in China, we had incremental production costs caused by the soaring material prices and inflationary impact. Nevertheless, thanks to the pricing scheme that reflects commercial values of the products, increasing unit sales of motorcycles and the foreign currency exchange impact, we achieved the operating profit of JPY 839.3 billion. The profit for the year attributable to the owner of the parent was JPY 695.2 billion. Status of the net sales, PL, are described here.

讓我們來看看 2023 財年綜合財務業績的概覽。除了由於中國半導體短缺和 COVID-19 大流行的影響，單位銷售額和 [汽車] 產量減少外，我們還有增量生產成本受材料價格飆升和通貨膨脹影響。儘管如此，由於反映產品商業價值的定價方案、摩托車單位銷量的增加以及外匯影響，我們實現了 8393 億日元的營業利潤。歸屬於母公司所有者的年度利潤為 6,952 億日元。此處描述了淨銷售額 PL 的狀態。

With regard to the forecast of our consolidated performance of FY 2024, all the incremental production costs and the inflationary impact, unit depreciation impact and et cetera may exist. We have been working on the pricing scheme reflecting commercial values of the production and further strengthening of the operational structures, plus the increase of the production and unit sales of automobiles. With altogether, we plan to hit JPY 1 trillion operating profit. That will be the highest ever. The profit for the year attributable to the owner of the parent is planned JPY 800 billion. Assumed exchange rate is JPY 125 for dollar for the full year basis. You can see the unit sales and the PL plans on this slide.

關於我們對2024財年綜合業績的預測，所有增量生產成本和通脹影響、單位折舊影響等都可能存在。我們一直致力於製定反映生產商業價值的定價方案，進一步加強運營結構，以及汽車產量和單位銷量的增加。總而言之，我們計劃達到 1 萬億日元的營業利潤。這將是有史以來最高的。歸屬於母公司所有者的年度利潤計劃為 8000 億日元。假定全年匯率為 125 日元兌 1 美元。您可以在這張幻燈片上看到單位銷售額和 PL 計劃。

Let me explain about the dividend. Annual dividend FY 2023 is JPY 120 per share and the year-end dividend is JPY 60 per share. As for the expected annual dividend for FY 2024, we will add JPY 30 to the amount of FY 2023, thus it will be JPY 150 per share, the highest dividend so far.

讓我解釋一下股息。 2023 財年的年度股息為每股 120 日元，年終股息為每股 60 日元。至於2024財年的預期年度股息，我們將在2023財年的金額上增加30日元，即每股150日元，是迄今為止最高的股息。

In the Board of Directors meeting today, we made a decision of share buybacks. For the purpose of improving capital efficiency of executing a flexible capital policy and so on, we will buy back our shares up to the total amount of the JPY 200 billion of acquisition values.

在今天的董事會會議上，我們做出了股票回購的決定。以執行靈活的資本政策等提高資本效率為目的，我們將回購我們的股票，最高可達2000億日元的收購價值總額。

Next, Mr. Fujimura, CFO, will explain the details of the financial results and forecast.

接下來，首席財務官藤村先生將解釋財務結果和預測的詳細信息。

Allow me to start the explanation. To begin with Honda Group's unit sales for the fiscal year 2023. In motorcycle operations, unit sales grew year-on-year, particularly in Asia, to 18.757 million units. Automobile sales came to 3.687 million units, mainly due to a decline in China and in North America. In Power Products operations, unit sales came to 5.645 million units mainly due to a decline in North America.

請允許我開始解釋。從本田集團 2023 財年的銷量開始。在摩托車業務方面，銷量同比增長，尤其是在亞洲，達到 1875.7 萬輛。汽車銷量為368.7萬輛，主要是由於中國和北美銷量下降。在電源產品業務中，單位銷售額達到 564.5 萬台，這主要是由於北美地區的下降。

Next, I'd like to explain the factor analysis of the pretax profit for the 4 quarters compared to the previous fiscal year. Pretax profit was JPY 938.1 billion, which was lower by JPY 131.9 billion compared to the previous fiscal year. Operating profit was JPY 839.3 billion, which is lower by JPY 31.8 billion in the year.

下面我就4個季度稅前利潤與上一財年相比的因素分析進行說明。稅前利潤為 9381 億日元，比上一財年減少 1319 億日元。營業利潤為 8393 億日元，較上年減少 318 億日元。

To give you a factor analysis of the operating profit. Impact from sales. Though there was an increase in motorcycle unit sales, declines in automobile sales volume and lower profit and financial operations led to income decline of JPY 109.1 billion.

給大家做一個營業利潤的因素分析。來自銷售的影響。儘管摩托車銷量有所增加，但汽車銷量下降以及利潤和財務運營下降導致收入下降 1091 億日元。

Selling price and cost factors. While there was effect from pricing in line with the product value due to surging material prices as well as effect from inflation, it resulted in a decline in profit by JPY 27.4 billion.

銷售價格和成本因素。由於材料價格飆升以及通貨膨脹的影響，根據產品價值進行定價，導致利潤減少 274 億日元。

Expenses. Due to increase in quality-related expenses and selling expenditures, this gave us a negative impact of JPY 132.5 billion. R&D expenses led to a profit decline of JPY 58.5 billion, and currency effect resulted in positive impact of JPY 295.9 billion.

花費。由於質量相關費用和銷售費用的增加，這給我們帶來了 1325 億日元的負面影響。研發費用導致利潤下降 585 億日元，貨幣效應帶來 2959 億日元的積極影響。

Next, to explain the sales revenues and operating profit by business segment. For motorcycles, operating profit was JPY 488.7 billion, and a record high. Automobiles operations profit was JPY 42.0 billion. Operating profit from financial services were JPY 285.8 billion. And for Power Products business and other businesses, operating profit came to JPY 22.8 billion.

其次，按業務分部說明銷售收入和營業利潤。摩托車方面，營業利潤為 4,887 億日元，創歷史新高。汽車業務利潤為 420 億日元。金融服務營業利潤為 2858 億日元。電源產品業務和其他業務的營業利潤達到 228 億日元。

Next, I will explain the cash flow. Free cash flow of operating entities for fiscal year 2023 came to JPY 685.8 billion, and the end-of-term balance of net cash came to JPY 2,750.8 billion.

接下來，我將解釋現金流量。 2023財年經營實體的自由現金流為6858億日元，淨現金期末餘額為27508億日元。

Next, I'd like to talk about the consolidated financial forecast for fiscal year '24. Firstly, speaking of Honda Group's unit sales compared to the previous fiscal year. In Motorcycle business, considering the growth mainly in Asia, forecast is for 19,180,000 units. In automobiles, we are putting it at 4.35 million units, considering the growth mainly in North America. And in Power Products, 4.75 million units in view of the declines in North America.

接下來，我想談談 24 財年的綜合財務預測。首先，與上一財年相比，本田集團的單位銷售額。在摩托車業務中，考慮到主要在亞洲的增長，預測為 19,180,000 輛。在汽車方面，考慮到主要在北美的增長，我們將其定為 435 萬輛。而在電源產品方面，鑑於北美的下滑，銷量為 475 萬台。

Next, I'd like to explain the factor analysis of pretax profit compared to the actual results from last year. Pretax profit is forecast at JPY 1,185 billion, up JPY 246.8 billion from the previous year's results. Operating profit is forecast at JPY 1 trillion, up JPY 160.6 billion from last year's results.

接下來，我想解釋一下稅前利潤與去年實際結果相比的因素分析。稅前利潤預計為 11,850 億日元，比上一年的結果增加 2,468 億日元。營業利潤預計為 1 萬億日元，比去年的結果增加 1606 億日元。

To explain the factors behind operating income. Impact from sales is forecast at positive JPY 440.6 billion due to growth in unit sales of automobiles and motorcycles. Selling price and cost impact is positive JPY 265.0 billion due to the effect from our ongoing pricing in line with product value, though there has been some impact from inflation as well.

解釋營業收入背後的因素。由於汽車和摩托車銷量的增長，預計銷售額的影響為 4,406 億日元。由於我們根據產品價值持續定價的影響，銷售價格和成本影響為 2650 億日元，儘管通貨膨脹也有一些影響。

Expenses impact is expected to be negative JPY 217.0 billion due to increases in selling expenses. R&D expense impact is negative JPY 60.0 billion. And the currency effect is forecast a negative of JPY 268.0 billion.

由於銷售費用增加，費用影響預計為負 2170 億日元。研發費用影響為負 600 億日元。貨幣效應預計為 2680 億日元的負面影響。

Lastly, our forecast for capital expenditure, depreciation and amortization and R&D expenditures for FY '24 are as shown.

最後，我們對 24 財年的資本支出、折舊和攤銷以及研發支出的預測如圖所示。

This completes my explanation. Thank you very much for your attention.

我的解釋到此結束。非常感謝您的關注。

(Operator Instructions) To start with first question from NHK, [Mr. Toma].

（操作員說明）從 NHK 的第一個問題開始，[先生。托馬]。

Toma from NHK. Can you hear me?

來自 NHK 的托馬。你能聽到我嗎？

Yes, we can.

我們可以。

So I have 2 questions. One is the Chinese businesses that is dropping quite a bit, that is my impression. But for that, what is your analysis and cause for that? And for the recovery plans going forward, what is your expectations this year in terms of the unit volumes and your plans for the production and so forth for the FY 2024 forecast?

所以我有兩個問題。一個是中國的業務下降了很多，這是我的印象。但是對此，您的分析和原因是什麼？對於未來的恢復計劃，您今年對 2024 財年預測的單位數量和生產計劃等有何期望？

And the second question is about semiconductor. The supply is on the improvement now gradually. But this time -- well, this year, including the semiconductor supply areas, I assume that you're going to recover the production volume, including in semiconductor supply recovery. And when do we expect to have that picked up? When do you think it will be normalized?

第二個問題是關於半導體的。目前供應正在逐步改善。但是這一次 - 好吧，今年，包括半導體供應領域，我假設你將恢復生產量，包括半導體供應恢復。我們預計什麼時候會收到它？你認為什麼時候會正常化？

Aoyama is going to answer your question.

青山來回答你的問題。

For the first question, in the fourth quarter, the businesses getting down in China in the fourth quarter and the forecast going forward. And in our January, March period, the fourth quarter -- actually, up until the third quarter of last year, the purchase tax, that is the acquisition tax of purchasing a car, that particular measures ended in December last year. Together with that, we had a negative impact in response to that measure being added, that is the market situation there.

第一個問題，第四季度，第四季度在中國的業務下降以及未來的預測。在我們的 1 月、3 月期間，第四季度——實際上，直到去年第三季度，購置稅，即購買汽車的購置稅，該特定措施於去年 12 月結束。與此同時，我們對增加的措施產生了負面影響，那就是那裡的市場情況。

And also to get along with the environmental regulations, in order to make the sales out from the inventories completely, there are some discounts being done. And then towards the end of the time period of the selling out plans of the products in stock, the consumers expected more discount, and then people waited to buy cars for some time. Because of that, the demand dropped.

並且為了配合環境法規，為了完全從庫存中銷售，正在進行一些折扣。然後臨近庫存產品售罄計劃的時間段結束時，消費者期望更多折扣，然後人們等待一段時間買車。因此，需求下降了。

Such reactional situation will improve now. And also last year, we had lockdown, COVID-19, which also had a negative impact on the businesses. But for the FY '24 for Honda going forward, we will have the full model change, a new model to introduce in the market from Honda, which we expect a 1.4 million cars to sell according to the plans in China.

這種反應的情況現在將有所改善。同樣在去年，我們進行了 COVID-19 封鎖，這也對企業產生了負面影響。但是對於本田未來的 FY '24，我們將進行全面的車型更改，這是本田將在市場上推出的一款新車型，我們預計根據計劃在中國銷售 140 萬輛汽車。

That is what we think as of now, but NEVs and -- new energy vehicles portions will increase going forward gradually. So as of now, we expect 1/3 of the demand will be of a new energy vehicle, we suppose. And we are selling our ICE and have vehicles as the main product to sell as yet. But we need to make a good utilization of the [incentives] and so forth so that we can continue to sell and keep the presence in China.

這就是我們目前的想法，但 NEV 和 - 新能源汽車部分將逐漸增加。因此，截至目前，我們預計 1/3 的需求將來自新能源汽車。我們正在銷售我們的內燃機，並將車輛作為目前要銷售的主要產品。但我們需要好好利用 [激勵] 等，以便我們可以繼續銷售並保持在中國的存在。

And in terms of the semiconductor. Toward the end of the fiscal year or in the second half of the year, specifically, the supplies of the semiconductors will improve finally. And we still have the 4.35 million unit sales forecast. And it is not going to be abrupt recovery, but it is going to be a gradual recovery from the mid of the year till the second half of the year. And full recovery is expected to be found in the fiscal year '25.

在半導體方面。到財年末或下半年，具體而言，半導體的供應將最終得到改善。我們仍然有 435 萬輛的銷售預測。而且不會突然恢復，而是從年中到下半年逐漸恢復。預計將在 25 財年實現全面復甦。

We'd like to proceed to the next question, [Mr. Kondo] from Asahi Newspaper, please.

我們想繼續下一個問題，[先生。朝日新聞的近藤]，請。

My name is Kondo from Asahi Shimbun Newspaper. I would also like to ask one question about the Chinese market and a different question for the second one.

我叫《朝日新聞》的近藤。我還想問一個關於中國市場的問題和另一個關於第二個問題的問題。

Right now, Mr. Aoyama explained the situation that the NEV, NEV's percentages are getting higher, and also the ICE vehicles are shrinking down and then there are some pricing competition. So that for the time being, probably the feasibility economics of the business in China, I would like to know how you view the Chinese market in terms of market, well, feasibility.

眼下，青山先生解釋了新能源汽車的情況，新能源汽車的比例越來越高，而且內燃機汽車也在萎縮，然後有一些價格競爭。所以暫時，可能是中國業務的可行性經濟學，我想知道你如何看待中國市場的市場，嗯，可行性。

My second question is you are going to -- going for the selling price hikes that should contribute to the profit of JPY 1 trillion for the first time. So in what -- how you are making those price hikes for different regions? I believe for Japanese market, you announced the price hike for the N-BOX series. So please let us know what your price hike strategies are.

我的第二個問題是你打算 - 進行銷售價格上漲，這將首次貢獻 1 萬億日元的利潤。那麼在什麼方面——你是如何為不同地區提價的？我相信對於日本市場，您宣布了N-BOX系列的價格上漲。所以請讓我們知道你們的提價策略是什麼。

Okay. Thank you very much, Mr. Kondo, for your questions. Okay. First, about the profitability for Chinese business, NEV is really coming up. And then so Honda has announced this e:N series, so that's something we will continue to strengthen.

好的。非常感謝近藤先生提出的問題。好的。首先，關於中國業務的盈利能力，新能源汽車真的要來了。然後本田宣布了這個 e:N 系列，這是我們將繼續加強的東西。

The second wave will come on the first of '24. And the SUV called Xu, that will come at the end of '24. That's what we talked about. So therefore, in terms of fiscal year '24, I believe, as NEV expands, we will not really have any NEV products available for the time being. So we would like to continue to maintain our presence. So we might consider using the incentive and then try to maintain 1.4 million unit sales. So if you think about FY '24, yes, in terms of our business feasibility, it will deteriorate, will be challenging for us.

第二波將在 24 年的第一波到來。名為 Xu 的 SUV 將於 24 年底推出。這就是我們談到的。因此，就 24 財年而言，我相信，隨著 NEV 的擴張，我們暫時不會真正提供任何 NEV 產品。所以我們想繼續保持我們的存在。所以我們可能會考慮使用激勵措施，然後嘗試保持 140 萬的銷量。因此，如果您考慮 24 財年，是的，就我們的業務可行性而言，它會惡化，對我們來說將是一個挑戰。

And then the other question about the price hikes for North America and then for Asia and then also Europe as well. For those markets or regions, we are seeing a lot of increasing on the manufacturing and procurement cost. So we have been reflecting those cost hikes increases to the price hike. So Mr. Fujimura will give you more detailed specific numbers.

然後是關於北美價格上漲的另一個問題，然後是亞洲價格上漲，然後是歐洲價格上漲。對於這些市場或地區，我們看到製造和採購成本大幅增加。因此，我們一直在將這些成本上漲反映為價格上漲。所以藤村先生會給大家更詳細的具體數字。

But when it comes to Japanese domestic market, well, yes, we did raise our prices. However, when it comes to prices, we believe we still do have pricing in line with our product value. So we want to go through another review. So I cannot give you any specific numbers right now, but we will continue to consider further price hikes.

但談到日本國內市場，嗯，是的，我們確實提高了價格。然而，在價格方面，我們相信我們的定價仍然符合我們的產品價值。所以我們想再進行一次審核。所以我現在不能給你任何具體數字，但我們會繼續考慮進一步提價。

Mr. Fujimura, if you have anything to add?

藤村先生，您有什麼要補充的嗎？

Okay, about price hikes. And then, of course, what we need to do first is to try to reduce our costs, trying to absorb cost price hikes. However, with the raw material procurement costs and with inflation, our cost has been going up a lot. So over 2 years, we have like a JPY 600 billion cost increases over the past 2 years.

好的，關於漲價。然後，當然，我們首先需要做的是努力降低成本，努力消化成本價格上漲。然而，隨著原材料採購成本和通貨膨脹，我們的成本已經上升了很多。因此，在 2 年多的時間裡，我們在過去 2 年中增加了 6000 億日元的成本。

But when it comes to price hikes or when it comes to our pricing strategy, we have been able to recover like about JPY 540 billion, so about 90% of the cost increases. But we say 90%, but in Asian markets, we have been able to recover almost 100% in Asia in motorcycle market. But speaking of automobile market, still, we have not been able to recover all the cost increases.

但是當談到價格上漲或我們的定價策略時，我們已經能夠收回大約 5400 億日元，因此大約 90% 的成本增加了。但我們說 90%，但在亞洲市場，我們已經能夠在亞洲摩托車市場恢復幾乎 100%。但就汽車市場而言，我們仍然無法收回所有成本增加。

And of course, in North America, there has been a lot of cost increase, which contributes a lot. But for Japan, because we have been trying to gain understanding from our customers and improve our services and products values, and that's what we have been doing our best at. And then in this fiscal year, now the cost, if you can look at this graph here, we -- I believe the number was shown, this plus benefits from cost increases when we show in the chart, drives up to JPY 1 trillion.

當然，在北美，成本增加很多，貢獻很大。但對於日本，因為我們一直在努力獲取客戶的理解，提升我們的服務和產品價值，這也是我們一直在做的最好的事情。然後在這個財政年度，現在的成本，如果你可以在這裡查看這張圖表，我們 - 我相信這個數字已經顯示出來，加上我們在圖表中顯示的成本增加帶來的好處，高達 1 萬億日元。

So we have been addressing the issue of cost increase towards our suppliers, so that issue still exists. However, we have been seeing good benefits, at least as far as raw materials go. And then also, we are doing better at our pricing strategy. So this box, I believe this has, after a few years, has gotten to be in the positive impact. That's what I can say for now.

所以我們一直在解決供應商成本增加的問題，所以這個問題仍然存在。然而，我們已經看到了良好的收益，至少就原材料而言是這樣。此外，我們在定價策略方面做得更好。所以這個盒子，我相信這已經在幾年後產生了積極的影響。這就是我現在能說的。

Next, from Nikkei Shimbun Newspaper, [Mr. Tanabe].

接下來，來自日經新聞，[先生。田邊]。

Tanabe from Nikkei. I have 2 questions. First one regarding R&D cost JPY 980 billion planned this year, and this is the largest, highest ever, I think. And please tell me why it is increasing? Maybe that includes electrification? As far as you could tell us, please explain. And you're going to invest on the electrification and the softwares next year and other companies are saying about additional investment on the electrification. And do you have any plans to change that expenses plan?

日經新聞的田邊。我有兩個問題。第一個是今年計劃的研發成本 9800 億日元，我認為這是有史以來最大、最高的。請告訴我為什麼它在增加？也許這包括電氣化？就你能告訴我們的，請解釋一下。明年你將投資於電氣化和軟件，其他公司正在談論對電氣化的額外投資。您是否有計劃更改該費用計劃？

And in the past fiscal year, Automobile businesses, January through March, you had operating losses in fact. And what is the reasons for that? Please share with us.

在過去的財政年度，汽車業務，從 1 月到 3 月，你實際上有經營虧損。原因是什麼？請與我們分享。

Thank you very much, Tanabe-san. So Aoyama speaking to respond to your question as much as I can. And then my colleague, Mr. Fujimura, will give us further explanation.

非常感謝你，田邊桑。所以青山發言是為了盡可能多地回答你的問題。然後我的同事藤村先生會給我們進一步的解釋。

So R&D expenses, JPY 980 billion. That is the largest ever. And of course, battery EV R&D cost is on the increase. That is the main part of these expenses. And also ICE and HEV as well, which will be also to be developed for the next-generation ones. The R&D expenses, that includes there is a ICE, HEV, plus battery EV development now coming to the full fledged effort. So that is why. And then I said JPY 5 trillion in 10 years.

所以研發費用為 9800 億日元。那是有史以來最大的。當然，純電動汽車的研發成本也在增加。這是這些費用的主要部分。還有 ICE 和 HEV，它們也將為下一代開發。研發費用，包括 ICE、HEV 以及電池 EV 的開發，現在正在全力以赴。這就是為什麼。然後我說 10 年 5 萬億日元。

As of today, we do not have any new plans now, but I think in April last year, I shared with you the number like that. However, we have been updating the numbers like that very now and then, and actually the trend is going up more to invest. And some time later, we can share with you more. Please wait for that.

截至今天，我們現在沒有任何新計劃，但我想在去年四月，我與您分享了這樣的數字。然而，我們一直在不時地更新這樣的數字，實際上趨勢正在上升，更多地用於投資。一段時間後，我們可以與您分享更多。請稍候。

And Automobile business' operating losses in January through March. And finally, annual unit sales was 3.69 million. And then we had 160,000 less sales finally. And in terms of the operating profit, regarding that, out of 160,000, about 110,000 are Chinese one, losses in China. And they remained -- remains the negative situation for the consolidated business figures. But those 50,000 part is going to be -- is actually causing impact on the gross margin numbers.

以及汽車業務在 1 月至 3 月的經營虧損。最後，年銷量為 369 萬輛。然後我們的銷售額最終減少了 160,000。就營業利潤而言，在160,000中，約有110,000是中國人，在中國虧損。他們仍然 - 仍然是綜合業務數據的負面情況。但那 50,000 部分將會 - 實際上會對毛利率數據產生影響。

Please.

請。

I have nothing much to add to this, but in the fourth quarter, we usually have this kind of a trend every year, but it is a kind of a step like changes of the expenses. R&D expenses tend to occur toward the fourth quarter period. That happens every year almost. And this year, especially, we have a quality-related cost included in that portion. In this fiscal year, the quality cost, actually that is rather low ratio to the sales turnover. It was 0.9% level of the total turnover. But in this fourth quarter, it was up to 1.7% of the total turnover because of the quality-related campaigns, which are like recalls.

我沒有什麼要補充的，但是在第四季度，我們通常每年都有這種趨勢，但它是一種類似於費用變化的步驟。研發費用往往發生在第四季度。幾乎每年都會發生這種情況。特別是今年，我們在該部分中包含了與質量相關的成本。在本財年，質量成本，實際上是佔營業額的相當低的比例。佔總成交額的0.9%。但在第四季度，由於與質量相關的活動（如召回），它佔總營業額的 1.7%。

So it doesn't mean that we had a new incidents happening, but we reestimated the number of the vehicles in scope for that. And then we had to have the reserve allowances for that. And in fact, we have about a 5% level of R&D to the turnover. That is the usual one. But now this year, we had a 6.4% instead.

所以這並不意味著我們發生了新的事件，但我們重新估計了範圍內的車輛數量。然後我們必須為此準備儲備金。事實上，我們的研發佔營業額的比例約為 5%。那是通常的。但今年，我們有 6.4%。

And it is about U.S. situation in the area of the cost with the suppliers. We've been working together, negotiating for the cost-related issues with them. And then we finally came to the agreement after a year. And then we are going to return back to them for the year a portion of their businesses together, and that is put up in the fourth quarter accounting. And that is why the Automobile business is like that.

這是關於美國在供應商成本方面的情況。我們一直在合作，與他們談判與成本相關的問題。一年後我們終於達成了協議。然後我們將在今年將他們的一部分業務一起返還給他們，這將在第四季度會計中提出。這就是汽車業務如此的原因。

I would like to take the next question from Weekly Toyo Keizai, Mr. Yokoyama.

下面我想請東洋經濟周刊橫山先生提問。

This is Yokoyama from Toyo Keizai.

我是東洋經濟的橫山。

Yes, we can hear you.

是的，我們能聽到你的聲音。

I have 2 questions as well. First one is concerning Automobile business. This 0.4%, Mr. Aoyama, how do you view this? How do you evaluate this? And then also this fiscal year, quantities numbers will improve, I believe, but where would be the focal point in your Automobile business for you to earn, make better earnings? That's my first question.

我也有兩個問題。第一個是關於汽車業務。這個0.4%，青山先生，您怎麼看？您對此如何評價？然後在本財政年度，我相信數量數字會有所改善，但是您的汽車業務的重點在哪裡，您可以獲得更好的收益？這是我的第一個問題。

Second question is concerning supplier support. Other OEMs, there are some of them they are taking care of the electricity bills or pay expenses in line with the production. But I believe Mr. Aoyama mentioned it briefly, but what kind of range of support you are giving this fiscal year? That's what I'd like to know.

第二個問題是關於供應商支持。其他原始設備製造商，其中一些是他們負責電費或支付與生產一致的費用。但我相信青山先生簡單地提到過，但是你在這個財政年度給予什麼樣的支持？這就是我想知道的。

Okay. Thank you very much for your questions, Mr. Yokoyama. Okay, so for 99th business year, yes, well, this 0.4%, I'm not satisfied at all. But when it comes to issues -- so as Mr. Fujimura explained, recently, there have been many factors that have been pushing up the cost. And then so how much of that we can reflect that, the cost increases, in either in the form of cost reduction or price hikes? So to what extent we can recover? We don't know.

好的。非常感謝您的提問，橫山先生。好的，所以對於第 99 個營業年，是的，這個 0.4%，我一點都不滿意。但說到問題——正如藤村先生解釋的那樣，最近有很多因素推高了成本。那麼我們可以反映出多少成本增加，無論是以成本降低還是價格上漲的形式？那麼我們能恢復到什麼程度呢？我們不知道。

I mean, are we really doing enough? Maybe not enough. So we need to do a little bit more. And then also, this can be -- well, comes down to the semiconductor. But because the volume is below what we aimed for, so for the previous year, that was the biggest factor that we could not meet the volume that we were aiming for. So we want to reach this 4.35 million units right now. So that's what we are aiming for.

我的意思是，我們真的做得夠多了嗎？也許還不夠。所以我們需要做更多的事情。然後，這也可以 - 好吧，歸結為半導體。但是因為數量低於我們的目標，所以對於前一年，這是我們無法達到我們目標數量的最大因素。所以我們現在想達到這 435 萬台。這就是我們的目標。

When it comes to issues and focus. So as you've seen in these numbers, in North America, we want to grow our volume, particularly in North America, as you're seeing here. So the total -- if you look at the total market trend, we need to monitor closely how that develops. Is it going to go into recession due to inflation? We need to monitor how that trends into the future. That's something we really need to follow closely. That's what we believe for North America.

當涉及到問題和重點時。因此，正如您在這些數字中看到的那樣，在北美，我們希望增加我們的銷量，特別是在北美，正如您在這裡看到的那樣。所以總的來說——如果你看一下整個市場趨勢，我們需要密切關注它是如何發展的。它會因通貨膨脹而陷入衰退嗎？我們需要監控未來的趨勢。這是我們真正需要密切關注的事情。這就是我們對北美的看法。

For supplier support, to what degree the support is given, that will be answered by Mr. Fujimura. But well, just taking on the electricity cost, that's only part of it. And then we had some impact from a semiconductor shortage. And then of course there will be some excessive fixed costs and all that. That would be another big item for the suppliers as well. So Mr. Fujimura will provide some additional information, including some specific numbers.

對於供應商支持，支持到什麼程度，這將由藤村先生來回答。但是好吧，只是承擔電費，這只是其中的一部分。然後我們受到半導體短缺的影響。然後當然會有一些過高的固定成本等等。這對供應商來說也是另一個大項目。所以藤村先生會提供一些額外的信息，包括一些具體的數字。

Okay. Thank you very much for the questions. Concerning the supplier support, support to suppliers, particularly in the past fiscal year due to the inflation and the logistics cost and then also particularly the energy utilities cost, particularly electricity, labor cost, one after another. Our suppliers have had a lot of factors that increased their costs as well.

好的。非常感謝您的提問。關於供應商支持，對供應商的支持，特別是在過去的財政年度，由於通貨膨脹和物流成本，然後還特別是能源公用事業成本，特別是電力、勞動力成本，一個接一個。我們的供應商也有很多增加成本的因素。

So on 1-to-1 basis, with each individual supplier in different regions, we have engaged in discussions and made some decisions. So last year, globally, we made about JPY 100 billion as cost increase support. So for that cost, without really reducing this cost, we want to -- we believe that cost level will continue at that level.

因此，在一對一的基礎上，我們與不同地區的每個供應商進行了討論並做出了一些決定。因此，去年，我們在全球範圍內獲得了約 1000 億日元的成本增加支持。因此，對於該成本，在不真正降低成本的情況下，我們希望 - 我們相信成本水平將繼續保持在該水平。

But as I said, per region, because of the pressure from inflation is working -- started to come into effect in North America by region -- sorry, for this business year, I cannot tell you the detailed numbers because it's summed up to individual negotiations.

但正如我所說，每個地區，由於通貨膨脹的壓力正在發揮作用——開始在北美按地區生效——抱歉，對於這個財年，我不能告訴你詳細的數字，因為它是對個人的總結談判。

But last year, business year, we saw main cost increases in North America last business year. And then in Japan -- sorry, for Japan, we have incorporated a bit of budget to support. And in North America, there was some cost increase. And then we have accepted the part prices in line with the part cost. And also, we had some volume expansion. And also in order to ensure stable production, that's which we aim to do to some extent.

但是去年，也就是業務年度，我們看到北美上個業務年度的主要成本增加了。然後在日本——抱歉，對於日本，我們已經納入了一些預算來支持。在北美，成本有所增加。然後我們接受了與零件成本一致的零件價格。而且，我們進行了一些體積擴展。而且為了確保穩定的生產，這也是我們在某種程度上的目標。

Those suppliers who are very capable and then who have the room for expansion, we have been working together closely with the suppliers to work out some cost reduction measures. So we have been engaging and then we will be engaging in those discussions. The same applies to Asia as well. With several suppliers, we have decided to work on cost reduction together. So this is just an image, but this is how we are including our ideas and work together into our budget for this 100th business year.

那些有能力的供應商，還有擴展的空間，我們一直在與供應商緊密合作，制定一些降低成本的措施。所以我們一直在參與，然後我們將參與這些討論。這同樣適用於亞洲。我們決定與多家供應商一起致力於降低成本。所以這只是一個形象，但這就是我們如何將我們的想法納入我們第 100 個商業年的預算中。

Next question, from [Yomiuri], Newspaper, [Mr. Nakamura], please.

下一個問題，來自[讀賣新聞]，報紙，[Mr.中村]，請。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

Nakamura from [Yomiuri] Newspaper. I have 2 questions. Earlier, there was a mention to it, about Chinese, the discount situation. So it is like your discount competition. And how long do you think it will continue? In extreme cases, other companies offer another car, if I buy a car. And what is the extent of the discount in practice today?

來自[讀賣]報紙的中村。我有兩個問題。早些時候，有提到它，關於中國，折扣情況。所以這就像你的折扣競爭。你認為它會持續多久？在極端情況下，如果我買車，其他公司會提供另一輛車。今天的實際折扣幅度是多少？

And also second question is about forecast of operating profit, the highest-ever operating profit in the fiscal year 2024. Are there any other ever-highest numbers expected?

第二個問題是關於營業利潤的預測，這是 2024 財年有史以來最高的營業利潤。是否還有其他預期的最高數字？

Thank you for your question, Mr. Nakamura. So for the question one, I'll address the part. And the second question will be supported by my colleague.

謝謝你的提問，中村先生。所以對於第一個問題，我將解決這一部分。第二個問題將得到我的同事的支持。

And then in terms of the discount, how long will it continue, it is difficult to foresee how long it will continue, practically speaking, because the discount at this time is in association with the response to the environmental measures, the country 6 -- or Stage 6b, and that is to ban certain types of models by a certain time.

然後在折扣方面，會持續多久，很難預見會持續多久，實際來說，因為這個時候的折扣是和環保措施的響應相關聯的，國家6——或階段 6b，即在特定時間禁止某些類型的模型。

So after the end of June, it is ended. And then from the July 1, we need to sell the product that satisfies Stage 6b type regulations. Other cars have to be sold out by the end of June because of that. And then, it was actually -- the deadline was end of December, they switched over timing. And then it was pushed upon until the end of June recently, and it is very difficult to tell how long it will continue because of such changes.

所以6月底之後，就結束了。然後從 7 月 1 日起，我們需要銷售符合 Stage 6b 類型法規的產品。因此，其他汽車必須在 6 月底之前售罄。然後，實際上是——截止日期是 12 月底，他們調換了時間。然後最近又被推到了6月底，因為這樣的變化，很難說會持續多久。

And Honda's perspective, we will not do extreme discounts such as buy one and then give you another car or extra discount. We are not going to do it. And for us, in the second half this year, we plan to launch new models. And it will refresh the models altogether, and I would like to make sure that those fresh new models will be sold in the market.

而在Honda的角度，我們不會做買一送一的極端優惠，或者額外優惠。我們不會這樣做。而對我們來說，今年下半年，我們計劃推出新車型。它將完全更新模型，我想確保這些新模型將在市場上銷售。

Fujimura-san, please?

藤村先生，好嗎？

I do not have the data with me right here. However, I mentioned a bit earlier in my presentation about the motorcycle operating profit of JPY 480 billion or above. The operating profit in that segment that is going to be the highest-ever motorcycles.

我這裡沒有數據。不過，我之前在演講中提到了 4800 億日元或以上的摩托車營業利潤。該細分市場的營業利潤將成為有史以來最高的摩托車。

And in terms of the net profit, JPY 1,000 billion. Before, there was a tax system change under the Trump administration. And then there was a release of some tax debt, and then it kind of pushed up the numbers a little bit higher transiently. And including that, it might change. However still, I believe it is going to be the record-high. I will get back to you with the more precise numbers later on. But in terms of the sales turnover revenue, it is also related to the exchange rate, about [JPY 18 trillion]. That is actually trending upwards.

而在淨利潤方面，10,000 億日元。此前，特朗普政府曾對稅制進行改革。然後釋放了一些稅收債務，然後暫時將數字推高了一點。包括這一點，它可能會改變。不過，我相信這將創下歷史新高。稍後我會用更精確的數字回复你。但就營業額而言，也與匯率有關，約為【18萬億日元】。這實際上是向上的趨勢。

Next, we would like to take the question from [Mr. Oribe] from Nikon -- sorry, The Daily Automotive Newspaper. Sorry.

接下來，我們想接受[Mr. Mr.]的提問。來自尼康的 Oribe]——對不起，《每日汽車報》。對不起。

This is Oribe from Daily Automotive Newspaper. I have 2 questions as well. First of all, about the factors for pushing up the operating profit, I believe that one comes from selling prices. But can we get more, a little bit, details about the negative factors, like the raw materials impact? So I believe there are some questions asked about support to supplier, how much of that is included in here.

我是 Daily Automotive Newspaper 的 Oribe。我也有兩個問題。首先，關於推高營業利潤的因素，我認為一個來自銷售價格。但是我們能否獲得更多有關負面因素的詳細信息，例如原材料的影響？所以我相信有人問了一些關於對供應商的支持的問題，這裡包括了多少支持。

And then sorry that I'm getting into different -- the details, but -- so you are expecting JPY 120 to $1 for '24. But probably this is more accurate. But when you do the -- if there was any background story you can share in consideration of the ForEx exchange rate as well.

然後很抱歉，我要談的是不同的——細節，但是——所以你預計 24 年的價格是 120 日元到 1 美元。但這可能更準確。但是當你這樣做時——如果有任何背景故事，你也可以在考慮到 ForEx 匯率的情況下分享。

Okay. So about the -- thank you very much. So your first question related to the past results as well as for outlook?

好的。那麼關於 - 非常感謝。那麼您的第一個問題與過去的結果以及前景有關嗎？

Both, please. Yes. Both of the financial results and the outlook.

兩個，請。是的。財務業績和前景。

About the outlook, I think I can answer that. I believe this is -- there's about JPY 50 billion increase in the material cost increase. I believe Mr. Fujimura -- sorry, raw material cost down, reduction. So Mr. Fujimura can give you the details.

關於前景，我想我可以回答。我相信這是 - 材料成本增加了大約 500 億日元。我相信 Fujimura 先生——對不起，原材料成本下降，減少。因此，藤村先生可以為您提供詳細信息。

Okay. Okay. Then starting with the financial results. So the selling cost, if you can show those boxes showing the factors, it was -- we had a JPY 12.7 billion, minus. So what this is -- sorry, this minus JPY 27.4 billion. So the negative was about -- sorry, [JPY 180 billion] or so. And then we have logistics and labor costs, and those are included in there. So those -- we actually did a pricing that negated, that canceled, those factors enough. And then we have this [JPY 330 billion].

好的。好的。然後從財務結果開始。所以銷售成本，如果你能顯示那些顯示因素的方框，那就是——我們有 127 億日元，減去。那麼這是什麼——抱歉，減去 274 億日元。所以負面影響是——抱歉，[1800 億日元] 左右。然後我們有物流和人工成本，這些都包含在其中。所以那些——我們實際上做了一個定價來否定、取消這些因素。然後我們有這個 [3300 億日元]。

So for the outlook, we have a plus JPY 265 billion, then -- so this includes a positive effect from raw materials of JPY 50 billion, and then also minus JPY 40 billion. So the difference will be the cost increase and then that will be the net offset results of the selling price and the cost increase. But as mentioned earlier, for cost factors, sorry, this is something that we negotiate individually so I cannot talk -- really talk about it. But anyway, offset, there is about JPY 250 billion or so -- JPY 260 billion to JPY 250 billion or so.

因此，對於前景，我們有 2650 億日元的正增長，那麼 - 這包括 500 億日元的原材料的積極影響，然後還有 400 億日元的負增長。因此，差異將是成本增加，然後是售價和成本增加的淨抵消結果。但正如前面提到的，對於成本因素，抱歉，這是我們單獨談判的事情，所以我不能談論——真的談論它。但無論如何，相抵，大約有 2500 億日元左右——2600 億至 2500 億日元左右。

So about the exchange rate. Just to give you the background because the interest rate hikes in the States might settle down in the second half, that's what we are expecting. And then maybe JPY 130 to $1 during the first half, JPY 120 during the second half. So that's what we -- that's where our JPY 125 average came through. That concludes my answer.

那麼關於匯率。只是為了給你背景，因為美國的加息可能會在下半年穩定下來，這就是我們所期待的。然後上半場可能是 130 日元兌 1 美元，下半場可能是 120 日元。這就是我們 - 這就是我們 125 日元的平均水平。我的回答到此結束。

Next question, from Jiji Press, Mr. Toyoda.

下一個問題，來自時事出版社，豐田章男先生。

Toyoda speaking from Jiji Press. Can you hear me?

豐田章男從時事出版社發言。你能聽到我嗎？

Yes.

是的。

I have a question regarding the past fiscal year. The details of the ups and downs of the profits and the reasons behind. And the chart says that JPY 56.5 billion for quality. And as you said, that is related to the recalls in the United States. And in the same box, you have a JPY 60 billion on the same box. And next one [JPY 800 billion] so forth, that is a negative impact. And what is the breakdown inside of the box?

我有一個關於過去財政年度的問題。利潤起伏的細節及背後的原因。圖表顯示質量為 565 億日元。正如你所說，這與美國的召回有關。在同一個盒子裡，你在同一個盒子上有 600 億日元。下一個 [8000 億日元] 等等，這是負面影響。盒子裡面的故障是什麼？

And the second question. In the United States market, financial instability so forth are now happening today. But what is your macro perspective of the U.S. economy going forward and its potential impact on the automotive industry? What is your thought about it?

第二個問題。在美國市場，金融不穩定等現象正在發生。但您如何看待美國經濟的宏觀前景及其對汽車行業的潛在影響？你對此有何看法？

Thank you, Ms. Toyoda, for your question. So the operating profit from the past year, quality-related one is connected to the recall cost in the United States. That is your question. But actually, this is not limited to the U.S. But globally, there are other regions also connected to it. Main part is the U.S., but as a fact, however, other regions or countries are connected to the recall as well. But in terms of the numbers, Fujimura is going to answer.

謝謝豐田章男女士的提問。因此，過去一年與質量相關的營業利潤與美國的召回成本有關。那是你的問題。但實際上，這不僅限於美國。在全球範圍內，還有其他地區也與之相關。主要部分是美國，但事實上，其他地區或國家也與召回有關。但就數字而言，藤村要給出答案。

But in terms of the U.S. market and financial instability, outlook of the economy and its impact on the automobile businesses, according to question. And I would say that market itself is quite solid as of now, recently. And FY 2023, toward the end of the fiscal year, the U.S. OEMs actually resuming their stock levels for the market. And then in 2020 FY, in the middle of the COVID pandemic, if you compared a situation to that, the stock level in the market is not that high as yet. It's not that much of the recovery, but also the market of the mid-term perspective, it is a little bit coming to be weak, perhaps in the midterm perspective. However, as of now, it is trending quite solidly, I should say.

但在美國市場和金融不穩定方面，經濟前景及其對汽車企業的影響，據質疑。我要說的是，市場本身最近非常穩固。到 2023 財年，在本財年末，美國原始設備製造商實際上恢復了市場庫存水平。然後在 2020 財年，在 COVID 大流行期間，如果你將情況與那種情況進行比較，市場上的庫存水平還沒有那麼高。不是複甦的那麼厲害，也是中期角度的行情，有點走弱，也許是中期角度。然而，截至目前，它的趨勢相當穩固，我應該說。

And then this is more of the macroeconomic perspective, but including a stable financial situation, but that part should be the area where we should pay close attention to, we shouldn't have pre-judgment on that. And practically speaking, this year, we will have the fresh product out. The product -- fresh product will be there, so it is a good situation for us. And in the industry like that, I'd like to make sure that we will sell those fresh new products in the market in the coming year.

然後這更多是宏觀經濟的角度，包括金融形勢的穩定，但那部分應該是我們應該密切關注的領域，我們不應該對此做出預判。實際上，今年我們將推出新鮮產品。產品——新鮮產品將在那裡，所以這對我們來說是個好情況。在這樣的行業中，我想確保我們將在來年在市場上銷售這些新鮮的新產品。

Thank you for your question. And then you say that other box is quite big. And then, I'm sorry that we couldn't give you a good explanation for that. In terms of the gross margin, it is JPY 6.4 billion. In the second quarter, a part of these said areas, entities had recognized the impairment of the fixed assets. That is up as much as JPY 300 million or so. And also we had the impact of the reduced unit sales, that is included in the a breakdown of the units of sold.

謝謝你的問題。然後你說另一個盒子很大。然後，很抱歉我們無法給你一個很好的解釋。就毛利率而言，為64億日元。二季度，上述部分地區主體已確認固定資產減值。這高達 3 億日元左右。我們也受到了單位銷售額減少的影響，這包括在已售單位的細目中。

And Chinese ones actually are in a different box, about [340,000] units were down, reduced amount in China. And we have KD parts profits for Honda, and we had a royalty payment, less made from Chinese joint ventures, and we have consolidated subsidiaries in China where they had reduced profit level too. So as of those impairments of the subsidiaries, we have impact by the reduced volume situation in China that is in that.

而中國的實際上是在不同的盒子裡，大約 [340,000] 單位下降了，中國的數量減少了。我們有本田的 KD 零件利潤，我們有特許權使用費，較少來自中國合資企業，我們在中國合併了子公司，他們也降低了利潤水平。因此，就子公司的減值而言，我們受到了中國銷量下降的影響。

And also JPY 80 billion expenses -- excuse me, JPY 60 billion expenses. The largest part out of that is the impact by the inflation of various countries. And most of that is actually for that reason. And then practically, maybe new models are starting up quite a bit. And then we do spend some advertisement of course, for the new models. But still, we try to maintain our lean structures that we achieved so far.

還有 800 億日元的開支——對不起，600 億日元的開支。其中最大的一部分是各國通貨膨脹的影響。其中大部分實際上是出於這個原因。然後實際上，也許新模型正在啟動很多。然後我們當然會為新型號做一些廣告。但是，我們仍然努力保持我們迄今為止取得的精益結構。

Next, [Mr. Hiraoka from News Fix].

接下來，[先生。來自 News Fix 的 Hiraoka]。

This is Hiraoka from News Fix. Can you hear me?

我是 News Fix 的平岡。你能聽到我嗎？

Yes.

是的。

So as a total as your company, how do you generate the cash that goes into investment? And going forward, in your Automobile business, you will be spending a lot of our R&D, and also capital expenditure which would increase, this will be reflected in the depreciation. Probably in NEV, probably the raw material price will probably stay high. So I'm thinking, just as a -- maybe this is an issue for the -- all across automotive companies. So how does -- how do you gain the cash? So for you, maybe motorcycle business is good and profitable. You can earn cash there. So you can probably pour a lot of investment in automobile. Let me know if that's really a strength you feel.

因此，作為您的公司，您如何產生用於投資的現金？展望未來，在您的汽車業務中，您將花費我們大量的研發費用，以及會增加的資本支出，這將反映在折舊中。可能在新能源汽車中，原材料價格可能會保持高位。所以我在想，就像——也許這對所有汽車公司來說都是一個問題。那麼 - 你如何獲得現金？所以對你來說，也許摩托車生意不錯而且有利可圖。你可以在那裡賺取現金。所以你可能會在汽車上投入大量投資。讓我知道這是否真的是您感受到的力量。

The second question is talking about the automotive -- sorry, PBR across all Japanese companies tend to be low, rather, below 1. And then there are voices saying what give us the -- be accountable for this? In your case, in the medium- to long-term perspective, how do you propose to increase PBR?

第二個問題是關於汽車——抱歉，所有日本公司的 PBR 往往都很低，甚至低於 1。然後有聲音說是什麼給了我們——對此負責？就你而言，從中長期來看，你建議如何提高PBR？

Okay. Thank you very much for your questions, Mr. Hiraoka. I will leave all the details to Mr. Fujimura. But so are we, first of all to answer, if we are earning cash from a motorcycle business? Okay. Even for battery -- sorry, even for motorcycles, we need to convert to e-battery, electrify them in the future. But there is a bit of a time lag between motorcycles and automobiles. So in medium-term perspective, I think for the -- I think it's all fair to say that we can earn cash to put into automobiles.

好的。平岡先生，非常感謝您的提問。我將把所有細節留給藤村先生。但是，如果我們從摩托車業務中賺取現金，那麼我們首先要回答嗎？好的。即使是電池——對不起，即使是摩托車，我們也需要轉換成電子電池，在未來給它們通電。但是摩托車和汽車之間有一點時間差。所以從中期的角度來看，我認為 - 我認為可以公平地說我們可以賺取現金用於汽車。

So for BEV, you said that raw materials prices are really staying high. But when it comes to raw materials, you're talking about the batteries and cells, I guess that's what you are talking about. But this is something you cannot really say that the cost is staying up high across the board. You can't say that. This is something -- I mean, because it's a market, it moves up and down.

那麼對於BEV，你說原材料價格真的居高不下。但是當談到原材料時，你說的是電池和電芯，我想這就是你在說的。但這並不是你真正說成本全面居高不下的事情。你不能這麼說。這是某種東西——我的意思是，因為它是一個市場，它會上下波動。

So I wouldn't really say -- the material cost does not hit only an individual company. So we hope to be, for those that moves up and down in terms of price/cost, we would like to accommodate ourselves. At the Shanghai Motor Show as well, there are some relatively low-priced battery EVs are coming out. We see that for sure. So we would continue to monitor the situation for EV.

所以我不會真的說 - 材料成本不僅僅影響個別公司。所以我們希望，對於那些在價格/成本方面上下波動的人，我們願意適應自己。在上海車展上，也有一些價格相對較低的純電動汽車問世。我們肯定會看到這一點。因此，我們將繼續監測 EV 的情況。

For the PBR, the second question, this is one of the critical issues in our management operations, of course. So basically, last year with the reporting, this is something we touched upon a little bit, the capital cost. We want to stay keenly aware, and then we will continue to consider introducing ROIC. But when it comes to the specific KPI, we like to set up a road map and we'll communicate what our KPIs will be for going forward.

對於 PBR，第二個問題，這當然是我們管理運營中的關鍵問題之一。所以基本上，去年的報告中，我們稍微談到了資本成本。我們希望保持敏銳的洞察力，然後我們將繼續考慮引入 ROIC。但是當涉及到特定的 KPI 時，我們希望制定路線圖，並且我們將傳達我們未來的 KPI 是什麼。

Okay then, well, just addition -- I don't know if this means additional information for you. But as you've pointed out, the cash from -- that we earn from motorcycle operation is considerable. But for automobiles, even though the operating margin, due to the fixed cost because the operating time is only 80% or less, so we hope to be able to earn 0.3% or higher.

好吧，好吧，只是補充——我不知道這對你來說是否意味著額外的信息。但正如您所指出的，我們從摩托車業務中賺取的現金是可觀的。但是對於汽車來說，即使是營業利潤率，由於固定成本，因為營業時間只有80%或更少，所以我們希望能夠賺到0.3%或更高。

So even though that's a situation in terms of earning in automobiles, but for operating cash flow, within the operating, we -- the depreciation that we can -- we are able to get this back. But also the equity earnings, the -- maybe 20% of the net profit comes from that. And then of course dividend from there is contributing as well.

因此，即使這是汽車收入方面的情況，但對於運營現金流，在運營中，我們——我們可以的折舊——我們能夠收回它。還有股權收益，可能有 20% 的淨利潤來自於此。當然，來自那裡的紅利也有貢獻。

And then in addition, there are some investment related to ICE we need to wisely manage in our operations. But as you have pointed out, going forward, we will be making a lot of investment in BEV, is that what you expected.

此外，還有一些與 ICE 相關的投資，我們需要在運營中明智地管理。但正如您所指出的，展望未來，我們將對 BEV 進行大量投資，這是您所期望的。

But what we are thinking of is that we need to maintain the current level of the investment. But just as a shift, we want to shift away from ICE, to spend more in R&D and investment for the new areas. So that's what we are thinking of. So we want to have a comprehensive control. And then we would probably keep in mind this cash generation capability from automobile operations as well. That's what we'll continue to do.

但我們想到的是，我們需要維持目前的投資水平。但作為一種轉變，我們希望擺脫 ICE，在新領域的研發和投資上投入更多資金。這就是我們正在考慮的。所以我們要有一個全面的控制。然後我們可能還會記住汽車業務產生現金的能力。這就是我們將繼續做的事情。

Because of the interest of time, the next question is going to be the last one. From Nikkei Newspaper, Mr. Uehara, please.

由於時間關係，下一題就到最後一題了。日經新聞，有請上原先生。

Uehara from Nikkei Newspaper. Can you hear me?

日經新聞的上原。你能聽到我嗎？

Yes.

是的。

I have 2 questions. One, about United States. The interest rate hikes and also the economy have a risk for the depression. But what is your judgment about the outlook? As of now, do you have -- how do you see the situation for businesses? And also the cash finance -- what is the impact on your -- the financing situation of cash support? And then also the outlook for China, midterm perspective, specifically its impact on the upcoming fiscal year revenue.

我有兩個問題。一，關於美國。加息和經濟都有蕭條的風險。但你對前景的判斷是什麼？截至目前，你有沒有 - 你如何看待企業的情況？還有現金融資——對你的現金支持的融資情況有什麼影響？然後還有中國的前景，中期觀點，特別是它對即將到來的財政年度收入的影響。

Mr. Uehara, did you complete your question?

上原先生，您的問題完成了嗎？

Yes.

是的。

Thank you for your question, Mr. Uehara. So in this year, in the fiscal year 2024, how do we see the economies impact on the sales?

謝謝你的問題，上原先生。那麼在今年，在 2024 財年，我們如何看待經濟對銷售的影響？

So in terms of the finance businesses, we have a basic revenues of our financing operations. And we have so-called penetration, how much we should acquire from that? That is one part. Whereas we have some -- the rate of delinquencies and the bad debts and allowances, reserves for that should we go about it. And also the lease businesses, the residual values of the lease fleet vehicles, let's say. And so-called net charge-off. We take that net charge of quite severely because of the inflation and economic pressures. We have included our forecast quite severely for that part.

因此，就金融業務而言，我們的融資業務有基本收入。我們有所謂的滲透，我們應該從中獲得多少？那是一部分。而我們有一些 - 拖欠率和壞賬和津貼，我們應該這樣做的準備金。還有租賃業務，比方說，租賃車隊車輛的剩餘價值。以及所謂的淨註銷。由於通貨膨脹和經濟壓力，我們非常重視淨費用。我們對那部分的預測非常嚴格。

And also the fleet vehicles residual values, in the previous 2 years of our businesses, we had a shortage of the supplies. And because of that, the trade-in markets, used car market, was quite booming, in a way, better.

還有車隊車輛的殘值，在我們業務的前兩年，我們的供應短缺。正因為如此，以舊換新市場、二手車市場相當繁榮，在某種程度上更好。

In terms of the residual values of those cars, actually in the past 2 years, it was quite favorable to us. However, in the upcoming fiscal year 2024, that is not going to stay positive, and that is our assumptions now.

就那些車的殘值來說，其實過去2年，對我們還是比較有利的。然而，在即將到來的 2024 財年，這不會保持樂觀，這是我們現在的假設。

And for the China situation, the FY 2024, it will stay with a bit of the difficulty in China. But after FY '25, we are going to strengthen the e:N series with the battery vehicles and so forth. More and more to add. And then for our businesses along, from the FY '25 onwards, we will expand the battery EV equals more, along with the revenues to enjoy as well.

而對於中國的情況，2024 財年，在中國會遇到一些困難。但在 25 財年之後，我們將加強 e:N 系列電池汽車等。越來越多要補充。然後對於我們的業務，從 25 財年開始，我們將擴大電池 EV 等量，以及享受的收入。

And in terms of the details, in fact, in the last few years, as Mr. Aoyama said now, financial businesses were like we had losses of those residual value related to used car ones and also the bad debt things. And in fact, the used car prices were very high. And also, the government provided support for the individual consumers. And after the pandemic, there was not much of the loss cost. And we had about JPY 360 billion to JPY 380 billion, also. And then it went [on back that] until now.

就細節而言，事實上，在過去的幾年裡，正如青山先生現在所說的那樣，金融業務就像我們損失了與二手車相關的殘值以及壞賬的東西。事實上，二手車價格非常高。此外，政府還為個人消費者提供支持。大流行之後，損失成本並不多。我們也有大約 3600 億日元到 3800 億日元。然後它 [on back that] 一直持續到現在。

But in fact, the cost as such is actually abnormal in the last 2 years. So I think we should say that we are coming back to the normalized status as we speak now. It's coming back like that. However, still, the used car prices are still high, so the losses due to the residual values still exist. And in fact, after that is over, it will be turning to the appropriate level. But actually, when the lease period is over, the customers' cars will be returned back to us, and then we'll put that in the market of the used cars again. And we used to have 60,000 cars like that before pandemic. And now we have about 200, 300 cars, that kind of level.

但實際上，這樣的成本在最近兩年其實是不正常的。所以我認為我們現在應該說我們正在回到正常化狀態。它就那樣回來了。但是，二手車價格仍然居高不下，殘值損失依然存在。事實上，結束之後，它會轉向適當的水平。但實際上，當租賃期結束後，客戶的車會歸還給我們，然後我們再把它投放到二手車市場。在大流行之前，我們曾經有 60,000 輛這樣的汽車。現在我們有大約 200、300 輛汽車，這種水平。

In terms of the bad debt, we had -- we have about 0.3% of the bad debt impact, and we've been doing the assessment of the credit score, like 70%, 80% of score -- A, B score. And we try to be prudent in terms of the customers like that, and we try to control the asset side of the chart.

在壞賬方面，我們有大約 0.3% 的壞賬影響，我們一直在評估信用評分，比如 70%、80% 的分數——A、B 分。我們試圖在這樣的客戶方面保持謹慎，我們試圖控製圖表的資產方面。

And when we had the financial crisis, we had a similar situation about procurement. The idea is how diverse -- how well we can diversify the procurement. And we [shouldn't] be optimistic, of course, but we will try like that. And we will stay operating with the procurement, and we have a policy as such.

當我們遇到金融危機時，我們在採購方面也有類似的情況。這個想法是多麼多樣化——我們能多好地使採購多樣化。當然，我們 [不應該] 樂觀，但我們會這樣努力。我們將繼續進行採購，我們有這樣的政策。

Okay. Then with this, we would like to finish our financial results press conference. The press release, information, the materials for financial results are listed on our website. Thank you very much for participation.

好的。然後，我們想結束我們的財務業績新聞發布會。新聞稿、信息、財務結果材料均列在我們的網站上。非常感謝您的參與。

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[現場通話中的口譯員用英語對這份成績單進行了陳述。]