索尼 (SONY) 2021 Q2 法說會逐字稿

Ladies and gentlemen, it is now time to start the second quarter fiscal 2020 earnings announcement of the consolidated results. And my name is Kato from Corporate Communications, and I shall be serving as the emcee for this session.

女士們先生們，現在是時候開始公佈 2020 財年第二季度的綜合業績了。我的名字是來自企業傳播部的加藤，我將擔任本次會議的司儀。

This briefing is being held for the members of the media, analysts and institutional investors to whom we have invited. And the session is -- can be viewed on the Internet through our investor website.

本次簡報會是為我們邀請的媒體成員、分析師和機構投資者舉行的。會議是--可以通過我們的投資者網站在互聯網上查看。

We have with us the Executive Deputy President and CFO, Mr. Hiroki Totoki, to talk about the consolidated results of the second quarter 2020 as well as the forecast for the full year 2020. And then there will be a question-and-answer session. And we anticipate that this session will last for about 70 minutes.

執行副總裁兼首席財務官藤時博樹先生與我們討論了 2020 年第二季度的綜合業績以及對 2020 年全年的預測。然後將有一個問答環節.我們預計本次會議將持續約 70 分鐘。

So Mr. Totoki first, please.

請先請藤樹先生。

Thank you. Major changes are occurring in society and economy as well as in people's lives, primarily due to the spread of the new coronavirus disease and an increase in geopolitical risks. At Sony, the increased export restrictions the U.S. government has imposed on a certain major Chinese customer are having a significant negative impact on our image sensors business, while stay-at-home demand resulting from COVID-19 is having a positive impact, primarily on our Game business. In an operating environment such as this where change is both rapid and broad, our diverse business portfolio augments the resilience of Sony and provides us an opportunity to expand new businesses.

謝謝你。新冠肺炎疫情蔓延，地緣政治風險加大，社會經濟和人民生活正在發生重大變化。在索尼，美國政府對某主要中國客戶實施的出口限制增加對我們的圖像傳感器業務產生了重大負面影響，而 COVID-19 導致的居家需求則產生了積極影響，主要是我們的遊戲業務。在這樣一個變化迅速而廣泛的運營環境中，我們多樣化的業務組合增強了索尼的彈性，並為我們提供了擴展新業務的機會。

Now I'd like to explain the following topics, as you see here. Fiscal '20 second quarter consolidated sales decreased slightly compared to the same quarter of the previous fiscal year to JPY 2,113.5 billion, but consolidated operating income increased JPY 38.8 billion year-on-year to JPY 317.8 billion, which was a record high for the second quarter.

現在我想解釋以下主題，正如您在此處看到的那樣。 20財年第二季度合併銷售額與上一財年同期相比略有下降至21,135億日元，但合併營業收入同比增長388億日元至3,178億日元，為第二季度的歷史新高四分之一。

Income before income taxes increased JPY 37.5 billion year-on-year to JPY 299.6 billion. Net income attributable to Sony Corporation stockholders for the quarter increased JPY 271.7 billion year-on-year to JPY 459.6 billion. This significant increase in net income was primarily due to the improvement in operating income I mentioned and the JPY 214.9 billion reversal of a portion of the valuation allowances recorded against deferred tax assets and the consolidated tax filing group in Japan. For details of adjusted profit, excluding extraordinary items recorded in second quarter, please refer to Pages 4 through 7 of the presentation materials.

所得稅前收入同比增長 375 億日元至 2,996 億日元。本季度歸屬於索尼公司股東的淨利潤同比增長 2,717 億日元至 4,596 億日元。淨收入的顯著增長主要是由於我提到的營業收入的改善以及日本的遞延所得稅資產和合併納稅申報集團記錄的部分估值準備金沖回了 2149 億日元。有關調整後利潤的詳細信息，不包括第二季度記錄的非常項目，請參閱演示材料的第 4 頁至第 7 頁。

Now this slide shows the results by segment for fiscal '20 quarter 2.

現在，這張幻燈片按部分顯示了 20 財年第 2 季度的結果。

Next, I will show the consolidated results forecast for fiscal 2020. Consolidated sales are expected to increase JPY 200 billion compared with the previous forecast to JPY 8.5 trillion, and operating income is expected to increase JPY 80 billion to JPY 700 billion. We have also upwardly revised the forecast for income before income taxes to JPY 765 billion and the net income attributable to Sony's Corporation shareholders to JPY 800 billion.

接下來，我將展示 2020 財年的合併業績預測。與之前的預測相比，合併銷售額預計將增加 2000 億日元至 8.5 萬億日元，營業收入預計將增加 800 億日元至 7000 億日元。我們還將所得稅前收入預測上調至 7650 億日元，將歸屬於索尼公司股東的淨利潤預測上調至 8000 億日元。

Our forecast for the consolidated operating cash flow, excluding the Financial Services segment, is JPY 630 billion, an increase of JPY 80 billion compared to our previous forecast. Our assumed foreign currency exchange rate for the second half of the year is JPY 105 to USD 1 and JPY 123 to the EUR 1.

我們對不包括金融服務部門的合併經營現金流的預測為 6,300 億日元，比我們之前的預測增加了 800 億日元。我們假設下半年的外幣匯率為 105 日元兌 1 美元和 123 日元兌 1 歐元。

Now this slide shows our forecast by segment. I will now explain the situation in each of our business segments. First, G&NS. First, in the G&NS segment, Software and Network Services performed well in the second quarter, primarily due to our first-party software titled Ghost of Tsushima becoming a big hit and PlayStation Plus subscribers increasing as a result of stay-at-home demand. Sales increased 11% year-on-year to JPY 506.6 billion with all categories increasing, except for hardware, which is anticipating the launch of the PlayStation 5.

現在這張幻燈片按細分顯示了我們的預測。我現在將解釋我們每個業務部門的情況。首先，G&NS。首先，在 G&NS 領域，軟件和網絡服務在第二季度表現良好，這主要是由於我們的第一方軟件《對馬之魂》大受歡迎，以及 PlayStation Plus 用戶因居家需求而增加。銷售額同比增長 11% 至 5066 億日元，除硬件外，所有類別都在增長，預計 PlayStation 5 將推出。

Operating income significantly increased JPY 39.9 billion to JPY 104.9 billion, primarily due to an increase in software revenue. The fiscal 2020 sales forecast has been revised upward JPY 100 billion compared to the previous forecast to JPY 2.6 trillion. And the operating income forecast has been revised upward JPY 60 billion to JPY 300 billion.

營業收入大幅增加 399 億日元至 1049 億日元，主要是由於軟件收入的增加。與之前的預測相比，2020 財年的銷售額預測已上調 1000 億日元至 2.6 萬億日元。營業收入預測已上調600億日元至3000億日元。

Although it has leveled off compared with its peak in April, stay-at-home demand, which drove sales and profit in this segment in the first half of the fiscal year, continue to have a positive impact with total PlayStation user game play time in September up approximately 30% compared to the same month of the previous year. We expect this level of stay-at-home demand to continue in the second half.

儘管與 4 月份的峰值相比已趨於平穩，但在本財年上半年推動該部門銷售和利潤的居家需求繼續對 PlayStation 用戶總遊戲時間產生積極影響與去年同期相比，9 月份上漲了約 30%。我們預計這種居家需求水平將在下半年持續。

Last month, we announced the price, release date and the software title lineup of the PS5. The price we announced is the same one we incorporated into the fiscal forecast we disclosed at the last earnings announcement. This fiscal year, we are aiming to exceed the 7.6 million units we sold in the fiscal year of the launch of the PlayStation 4, which achieved a substantial market share and was a major success.

上個月，我們公佈了 PS5 的價格、發布日期和軟件名稱陣容。我們公佈的價格與我們在上次收益公告中披露的財政預測中納入的價格相同。本財年，我們的目標是超過 PlayStation 4 發布財年的 760 萬台銷量，這取得了可觀的市場份額並取得了重大成功。

And for software for the PS5, we expect to have more titles than at any launch of our history, thanks to our high-quality first-party software that is exclusive to this PlayStation and to a collaboration with our publisher partners. We expect to launch the PS5 in great shape due to this appealing software lineup, the strength of the PlayStation brand, our preeminent game ecosystem and our cohesive gamer community.

對於 PS5 的軟件，我們希望擁有比我們歷史上任何一次發布更多的遊戲，這要歸功於我們為 PlayStation 獨家提供的高質量第一方軟件以及與我們的發行商合作夥伴的合作。由於這個吸引人的軟件陣容、PlayStation 品牌的實力、我們卓越的遊戲生態系統和我們有凝聚力的遊戲玩家社區，我們預計 PS5 會以完美的形式推出。

Our strategy is to grow sales and profit through increased user engagement, driven by great gaming experiences on the PS5, and we aim to accelerate the growth of recurring sales and profit by expanding the reach.

我們的戰略是在 PS5 上出色的遊戲體驗的推動下，通過增加用戶參與度來增加銷售額和利潤，我們的目標是通過擴大覆蓋面來加速經常性銷售額和利潤的增長。

Next is the Music segment. Fiscal year '20 Q2 sales increased 5% year-on-year to JPY 230.9 billion, primarily due to an increase in streaming revenue and a hit album released by Kenshi Yonezu in Japan. Operating income increased JPY 15.4 billion to JPY 52.9 billion due to the impact of the increase in sales and a onetime gain resulting from the transfer of a business.

接下來是音樂部分。 20 財年第二季度銷售額同比增長 5% 至 2309 億日元，這主要是由於流媒體收入的增加和米津賢士在日本發行的熱門專輯。由於銷售額增加和業務轉讓帶來的一次性收益的影響，營業收入增加了 154 億日元至 529 億日元。

In the Recorded Music space, advertising-supported streaming, which was negatively impacted by COVID-19, is recovering. And streaming revenue during the quarter continued to grow at a high rate of 18% year-on-year. Primarily because streaming revenue in Recorded Music is exceeding our expectations, fiscal year '20 sales are expected to increase JPY 60 billion compared to our previous forecast to JPY 850 billion, and operating income is expected to increase JPY 22 billion to JPY 152 billion.

在錄製音樂領域，受 COVID-19 負面影響的廣告支持的流媒體正在復蘇。本季度的流媒體收入繼續以同比 18% 的高速度增長。主要是因為 Recorded Music 的流媒體收入超出了我們的預期，與我們之前預測的 8500 億日元相比，20 財年的銷售額預計將增加 600 億日元，營業收入預計將增加 220 億日元至 1520 億日元。

Demon Slayer, (inaudible) which Sony co-produced and co-distributed, opened on October 16, 2020, and became the first film ever released in Japan to exceed JPY 10 billion in box-office revenue in the 10 days after opening. The TV series is being distributed outside of Japan via channels such as Funimation, which is also a Sony Group company, and it is extremely popular. We expect this IP to contribute even further to the enhancement of synergy across our entertainment businesses, not just the animation business we are focusing on.

索尼聯合製作和發行的《惡魔殺手》（聽不清）於 2020 年 10 月 16 日上映，成為日本首部在上映後 10 天內票房收入超過 100 億日元的電影。這部電視劇通過同為索尼集團公司的 Funimation 等渠道在日本境外發行，非常受歡迎。我們預計該 IP 將進一步增強我們娛樂業務的協同效應，而不僅僅是我們關注的動畫業務。

Next is the Pictures segment. Fiscal year 2020 Q2 sales significantly decreased 26% year-on-year to JPY 192.3 billion, primarily due to a significant decrease in theatrical releases resulting from the impact of COVID-19 compared to the same quarter of the previous fiscal year, in which the major hit, Spider-Man: Far from Home, was released as well as a decrease in advertising revenue in media networks. Operating income decreased for Motion Pictures and other factors.

接下來是圖片部分。 2020 財年第二季度銷售額同比大幅下降 26% 至 1923 億日元，主要是由於與上一財年同期相比，COVID-19 的影響導致影院上映數量大幅減少，其中大熱的《蜘蛛俠：英雄遠征》上映後，媒體網絡的廣告收入下降。電影和其他因素的營業收入下降。

Our forecast for fiscal year '20 sales has not changed, but the forecast for operating income has increased JPY 7 billion to JPY 48 billion to reflect the results of the first half. While taking steps to prevent the spread of COVID-19, we have restarted motion picture and TV show production in stages since July.

我們對 20 財年銷售額的預測沒有改變，但營業收入的預測已增加 70 億日元至 480 億日元，以反映上半年的業績。在採取措施防止 COVID-19 傳播的同時，我們從 7 月開始分階段重新啟動了電影和電視節目的製作。

Box office revenue has begun to recover, but the closure of theaters in major cities in the U.S. continues, and the major studios are postponing the release of large films. Once theaters reopen, there is a possibility that increased competition from a crowded motion pictures release schedule will cause the recovery of our sales and profit to be delayed.

票房收入已經開始回升，但美國主要城市的影院關閉仍在繼續，各大製片廠都在推遲大片的上映。一旦影院重新開放，由於電影上映時間擁擠而導致的競爭加劇，可能會導致我們的銷售和利潤的恢復延遲。

The Motion Pictures business model is one where sales and profit are generated over multiple years, starting with theatrical release where hits are made, and progressing to successful windows such as home entertainment and TV and video-on-demand licensing. As a result, the negative impact on our financial results of not being able to release films into theaters will continue for several years going forward.

電影商業模式是一種多年產生銷售和利潤的商業模式，從大獲成功的影院上映開始，到成功的窗口，如家庭娛樂、電視和視頻點播許可。因此，無法在影院上映電影對我們財務業績的負面影響將持續數年。

On the other hand, advertising revenue in the Media Networks business, which was significantly negatively impacted by COVID-19, is recovering.

另一方面，受到 COVID-19 顯著負面影響的媒體網絡業務的廣告收入正在復蘇。

Next is the EP&S segment. The second quarter sales increased 2% year-on-year to JPY 504.7 billion, primarily due to an increase in unit sales of TVs. Operating income increased JPY 12.6 billion year-on-year to JPY 54 billion, primarily due to a reduction in operating costs and an improvement in the product mix and an increase in the unit sales of TV.

接下來是EP&S部分。第二季度銷售額同比增長 2% 至 5,047 億日元，主要是由於電視的單位銷售額增加。營業收入同比增長 126 億日元至 540 億日元，主要是由於運營成本的降低和產品結構的改善以及電視單位銷售額的增加。

No change has been made to the forecast for fiscal year '20 sales. But primarily due to the favorable impact of foreign currency exchange rates, we increased the FY '20 operating income forecast by JPY 7 billion compared to the previous forecast to JPY 67 billion.

對 20 財年銷售額的預測沒有變化。但主要由於外匯匯率的有利影響，我們將 20 財年的營業收入預測從之前的預測上調了 70 億日元，達到 670 億日元。

Although the segment was significantly negatively impacted by COVID-19 early from February of this year, it regained its stability in Q2, thanks to a stabilization of the supply chain, stay-at-home demand for home audio and video products and the recovery of demand for digital cameras and other products. Nevertheless, we are operating the business with extreme caution as recent signs of a resurgence of COVID-19 have proven that the unpredictable situation is continuing.

儘管從今年 2 月初開始，該細分市場受到 COVID-19 的顯著負面影響，但由於供應鏈的穩定、對家庭影音產品的居家需求以及經濟復甦，它在第二季度恢復了穩定。對數碼相機和其他產品的需求。儘管如此，由於最近 COVID-19 死灰復燃的跡象表明，不可預測的情況仍在繼續，因此我們非常謹慎地經營業務。

We are working to build a business that can generate a profit under even more severe circumstances by further accelerating management of the segment as one unity, improving the efficiency of our operations and optimizing our scale. Moreover, in order to bring reality real-time and remote value to our customers using Sony's technology, we will work diligently to sow the seeds of future growth.

進一步加快板塊一體化管理，提高運營效率，優化規模，努力打造在更嚴峻的形勢下也能產生利潤的業務。此外，為了使用索尼的技術為我們的客戶帶來現實的實時和遠程價值，我們將努力播下未來增長的種子。

Next is the I&SS segment. Fiscal year 2020 second quarter sales decreased slightly year-on-year to JPY 307.1 billion, and operating income significantly decreased JPY 26.5 billion to JPY 49.8 billion. Sales for fiscal year '20 are expected to decrease JPY 40 billion to JPY 960 billion, and operating income is expected to significantly decrease JPY 49 billion to JPY 81 billion. Even accounting for the decrease in operating income in fiscal year 2020, we expect the difference between the total of operating cash flow and investing cash flow for the segment over the 3 fiscal years that began in April 2018 to be positive.

接下來是 I&SS 部分。 2020財年第二季度銷售額同比小幅下降至3071億日元，營業收入大幅下降265億日元至498億日元。 20財年的銷售額預計將減少400億日元至9600億日元，營業收入預計將大幅減少490億日元至810億日元。即使考慮到 2020 財年營業收入的減少，我們預計從 2018 年 4 月開始的 3 個財年該部門的總營業現金流量和投資現金流量之間的差額將是正數。

Pursuant to export restrictions announced by the U.S. government on August 17, 2020, we terminated product shipments to a certain major Chinese customer as of September 15. The forecast disclosed today for the second half of this fiscal year does not include any shipments to that customer. In addition, the operating income for the quarter includes an approximately JPY 71.5 billion (sic) [JPY 17.5 billion] write-down of finished goods and work-in-process inventory for that customer recorded at the end of September.

根據美國政府於 2020 年 8 月 17 日宣布的出口限制，我們於 9 月 15 日終止了對某主要中國客戶的產品發貨。今天披露的本財年下半年預測不包括對該客戶的任何發貨.此外，本季度的營業收入包括該客戶在 9 月底記錄的成品和在製品庫存減記約 715 億日元（原文如此）[175 億日元]。

Based on this situation, we are further revising the business strategy I explained at the previous earnings announcement from the perspective of capital expenditures research and development and customer base. We are further postponing the timing of capital expenditures with cumulative capital expenditures for the 3 fiscal years that began April 2018, expected to be reduced JPY 40 billion from approximately JPY 650 billion I explained the last time. We do not think it is prudent to prematurely reduce research and development spending because we want to meet the needs of a wide range of smartphone customers as well as maintain and increase our future technological competitive advantage.

基於這種情況，我們正在從資本支出研發和客戶群的角度進一步修改我在之前的收益公告中解釋的業務策略。我們進一步推遲了資本支出的時間，從 2018 年 4 月開始的 3 個財政年度的累計資本支出預計將從我上次解釋的約 6,500 億日元減少 400 億日元。我們不認為過早減少研發支出是明智的，因為我們希望滿足廣泛的智能手機客戶的需求，並保持和增加我們未來的技術競爭優勢。

We have had some success expanding and diversifying our customer base for fiscal year '21. The financial impact on our business in fiscal year 2020 is limited. But we do think it is possible to recapture in fiscal year 2021 a large portion of the market share on a unit basis we lost this fiscal year. However, we expect that it will take a long time for other customers to follow the trend to higher functionality and larger die size smartphone cameras that the Chinese customer was leading.

在 21 財年，我們在擴大和多樣化客戶群方面取得了一些成功。 2020 財年對我們業務的財務影響有限。但我們確實認為，有可能在 2021 財年重新奪回本財年失去的單位市場份額的很大一部分。然而，我們預計其他客戶需要很長時間才能跟上中國客戶領先的更高功能和更大芯片尺寸的智能手機相機的趨勢。

Thus, we expect the substantial recovery of profitability driven by those high value-added products to take place in the fiscal year ending March 31, 2023 by recapturing market share in fiscal year 2020. Through an increase in sales of commodity sensors and by recouping our business profitability in fiscal year 2022 through more high value-added products, we aim to return the mobile image sensors business to growth. In addition, there is no change to our mid- to long-term strategy of growing our business through expansion of applications that use HAI and 3D sensing capabilities as well as through starting up automotive sensors in earnest.

因此，我們預計，通過在 2020 財年重新奪回市場份額，這些高附加值產品推動的盈利能力將在截至 2023 年 3 月 31 日的財年中大幅恢復。通過增加商品傳感器的銷售並收回我們的通過更多高附加值產品在 2022 財年實現業務盈利，我們的目標是讓移動圖像傳感器業務恢復增長。此外，我們通過擴展使用 HAI 和 3D 傳感功能的應用程序以及通過認真啟動汽車傳感器來發展我們的業務的中長期戰略沒有改變。

Last is the Financial Services segment. Fiscal year 2020 second quarter Financial Services revenue was essentially flat at JPY 373.9 billion. Operating income increased JPY 4.9 billion to JPY 43.7 billion, primarily due to an improvement in valuation gains and losses on securities held at Sony Bank and the decline in the loss ratio for automobile insurance at Sony Assurance.

最後是金融服務部門。 2020 財年第二季度金融服務收入基本持平，為 3739 億日元。營業收入增加 49 億日元至 437 億日元，主要是由於索尼銀行持有的證券的估值損益改善以及索尼保險的汽車保險損失率下降。

We expect fiscal year 2020 Financial Services revenue to increase JPY 60 billion compared to our previous forecast to JPY 1.460 trillion, primarily due to an increase in net gains on investment in the separate account related to variable insurance products at Sony Life. We expect operating income to increase JPY 13 billion to JPY 155 billion, primarily due to the decline the loss ratio for automotive insurance at Sony Assurance.

我們預計 2020 財年金融服務收入將增加 600 億日元，而我們之前的預測為 1.460 萬億日元，這主要是由於與索尼人壽可變保險產品相關的獨立賬戶投資的淨收益增加。我們預計營業收入將增加 130 億日元至 1550 億日元，主要是由於索尼保險的汽車保險損失率下降。

Sony Financial Holdings became a wholly-owned subsidiary of Sony Corporation on September 2, 2020. Going forward, we will disclose the information shown here pertaining to the Financial Services segment on a quarterly basis in our supplementary information.

索尼金融控股公司於 2020 年 9 月 2 日成為索尼公司的全資子公司。今後，我們將在補充信息中按季度披露此處顯示的與金融服務部門有關的信息。

Lastly, I would like to discuss the outlook of our businesses into next fiscal year. This slide shows our current view as to the momentum for each business from today through the next fiscal year and beyond. As I have explained today, we're incorporating a negative impact on the financial results of the I&SS segment relating to a certain major Chinese customer. But there's no change to the mid- to long-term growth momentum of business overall. And we are gaining confidence that it is possible to strengthen and grow our business despite the COVID-19 pandemic. We aim to grow even more in the future by returning to the past profit growth from the next fiscal year, which is when we start the next medium-range plan.

最後，我想討論一下我們下一個財政年度的業務前景。這張幻燈片顯示了我們目前對從今天到下一個財政年度及以後的每項業務的發展勢頭的看法。正如我今天所解釋的那樣，我們正在對與某個主要中國客戶相關的 I&SS 部門的財務業績產生負面影響。但整體業務的中長期增長勢頭沒有變化。我們越來越相信，儘管發生了 COVID-19 大流行，我們仍有可能加強和發展我們的業務。我們的目標是通過從下一個財政年度（即我們開始下一個中期計劃）恢復過去的利潤增長，在未來實現更大的增長。

Thank you very much.

非常感謝。

That was CFO, Hiroki Totoki, making the presentation.

那是首席財務官 Hiroki Totoki 進行演示。

The question-and-answer session will be starting at 4:20, 20 minutes past 4. In the first 20 minutes, we'll receive questions from the media, and in the next 20 minutes, we'll be receiving questions from the investors as well as analysts.

問答環節將於下午 4 點 20 分開始。前 20 分鐘，我們將收到媒體的提問，接下來的 20 分鐘，我們將收到來自媒體的提問。投資者和分析師。

(Operator Instructions) So please wait for a while before we start our Q&A session.

（操作員說明）所以在我們開始問答環節之前請稍等片刻。

Ladies and gentlemen, thank you for waiting. We would like to now open the questions from the media. The questions will be answered by Hiroki Totoki, the Executive Deputy President and CFO; Naomi Matsuoka, the Senior Vice President in charge of Corporate Planning and Control, Finance and IR; as well as Mami Imada, the VP and Senior General Manager in charge of Corporate Communications.

女士們，先生們，謝謝你們的等待。我們現在想公開媒體的問題。這些問題將由執行副總裁兼首席財務官 Hiroki Totoki 回答； Naomi Matsuoka，負責公司計劃和控制、財務和 IR 的高級副總裁；以及負責企業傳播的副總裁兼高級總經理Mami Imada。

(Operator Instructions) So I would like to now open the question-and-answer session. (Operator Instructions)

（操作員說明）所以我現在想打開問答環節。 （操作員說明）

The first question, [Takahashi-san] from Mainichi Newspaper, please.

第一個問題，來自每日新聞的[高橋先生]。

From Financial Times, Inagaki-san, please. Financial Times, Inagaki-san, please. That's -- please ask your question. Inagaki-san, can you hear us?

請來自《金融時報》的稻垣先生。金融時報，稻垣先生，請。那是——請提出你的問題。稻垣同學，你能聽到我們的聲音嗎？

Sorry for that. Due to the connections, I think we need to move on to next person in line. From Bloomberg, Furukawa-san, please.

對此感到抱歉。由於存在聯繫，我認為我們需要轉移到下一個排隊的人。請來自彭博社的古川先生。

Furukawa from Bloomberg. I hope you can hear me.

來自彭博社的古川。我希望你能聽到我的聲音。

Yes, we can hear you.

是的，我們可以聽到你的聲音。

Regarding the semiconductor business, I have 2 questions. First of all, regarding the CapEx plan, the Nagasaki plant, it's to start operating April of 2021. Is there any changes to the schedule of the operation? And also, CMOS sensors production capacity by March 2021, I think 138,000 per month, I think that was the plan. So is there a modification to that? So that was the first question.

關於半導體業務，我有兩個問題。首先，關於CapEx計劃，長崎工廠將於2021年4月開始運營。運營時間表是否有任何變化？而且，到 2021 年 3 月，CMOS 傳感器的生產能力，我認為每月 138,000 個，我認為這是計劃。那麼有沒有修改呢？所以這是第一個問題。

And should I ask one by one?

我應該一一問嗎？

Yes. No, please ask the second question as well.

是的。不，請同時問第二個問題。

Okay. So second question, the semiconductor. There's a certain customer in China, other than that, the customer for North America or other Chinese manufacturers, is there increase in orders that you're receiving? Anything that you can share with us on that, please?

好的。第二個問題，半導體。在中國有一個客戶，除此之外，北美或其他中國製造商的客戶，你收到的訂單有增加嗎？有什麼可以和我們分享的嗎？

Thank you for the question. I would like to respond to the first question, first of all. The Nagasaki plant has been expanded, and it's a question about the production resumption schedule. And we have always said that we'll be starting our production in April 2021, and that schedule has not been changed as of now. However, after the production has been resumed, the pace at which the production increase will be taking place, that may be revisited in the production plan in fiscal 2021.

感謝你的提問。首先，我想回答第一個問題。長崎工廠擴建了，是關於復工時間表的問題。而且我們一直說我們將在 2021 年 4 月開始生產，到目前為止，這個時間表還沒有改變。然而，在恢復生產後，增產的速度將在 2021 財年的生產計劃中重新審視。

And as for -- at the end of this fiscal year, the capacity will be 138,000, whether the plan has been changed or not, on that question, yes, we will be introducing a production facility and no changes to that. But whether when it's going to start the production, it will depend on the demand in the fourth quarter from the customers and also the capacity factor of our production facility. And that will be used as a basis for making a decision on when the production facility will start.

至於——到本財年末，產能將達到 138,000，無論計劃是否改變，在這個問題上，是的，我們將引入一個生產設施，並且沒有任何改變。但何時開始生產，將取決於客戶在第四季度的需求，以及我們生產設施的產能因素。這將用作決定何時開始生產設施的基礎。

And also, regarding the customers other than the Chinese major customer. In general, in North America, over the previous year, it has been increased year-on-year. And also for other Chinese customers, there has been some additional orders. And I think we're making efforts to increase orders, and I think it's been effective. This concludes my response.

此外，關於中國主要客戶以外的客戶。總體而言，在北美，與上一年相比，它是逐年增加的。對於其他中國客戶，也有一些額外的訂單。而且我認為我們正在努力增加訂單，而且我認為這是有效的。我的回答到此結束。

Going on to the second question. And we had heard from Mainichi, [Kato-san], please. Kato-san , do you hear?

繼續第二個問題。並且我們已經收到了每日的消息，[加藤先生]，拜託。加藤桑，你聽到了嗎？

Yes.

是的。

Kato of Mainichi Newspaper, go ahead.

每日新聞的加藤，繼續。

About anime business is what I want to ask you about. In terms of segment, does it belong to Music? And the Demon Slayer, what is included in anime mean streaming or Internet high distribution, is that the target? Or what about the Pictures -- is it going to be included in the annual Pictures sales?

關於動漫業務是我想問你的。就細分而言，它屬於音樂嗎？而惡魔殺手，包含在動漫中意味著流媒體或互聯網高分發，是目標嗎？或者圖片呢？它會被包含在年度圖片銷售中嗎？

Thank you for the 2 questions. First question is about the segment, is it -- and is the anime included in the Music segment? And the Demon Slayer is a big hit, and is it going to contribute to streaming of animation? Or is it going to be included in the Pictures side?

謝謝你的2個問題。第一個問題是關於該部分的，是嗎？動畫是否包含在音樂部分中？惡魔殺手大受歡迎，它會為動畫流媒體做出貢獻嗎？還是將其包含在圖片方面？

And Matsuoka will give you the answer.

松岡會給你答案。

Thank you for those questions. With regards to anime, the segment is Music, yes, Music segment, and it is in the video image production. And as for the Demon Slayer, anime streaming revenue, as you know, is Netflix and Amazon where they're streaming, and so there's such contributions. And as mentioned earlier, there is the contributions on the Pictures side, too.

謝謝你的這些問題。關於動漫，這個部分是音樂，是的，音樂部分，它是在視頻圖像製作中。至於惡魔殺手，如你所知，動漫流媒體收入是他們流媒體的 Netflix 和亞馬遜，所以有這樣的貢獻。如前所述，圖片方面也有貢獻。

Let us take the next question. Nikkei Newspaper, Shimizu-san will be the next.

讓我們來回答下一個問題。日經新聞，清水先生將是下一個。

Shimizu from Nihon Keizai Shimbun. I also have 2 questions. The first question is about the game. Earlier, you said that PS5 in the initial year is expected to sell 7.6 million units. Given this, is it a possibility that it may exceed the 100 million unit that PS4 achieved?

日本經濟新聞社的清水。我也有2個問題。第一個問題是關於遊戲的。早些時候，你說 PS5 首年預計銷量 760 萬台。鑑於此，是否有可能超過 PS4 達到的 1 億台？

The second question is you want to diversify the customer base. You did talk about a specific major customer. But does it mean that you will place more emphasis on commodity products?

第二個問題是你想使客戶群多樣化。你確實談到了一個特定的主要客戶。但這是否意味著您將更加重視商品產品？

Thank you. Let me address the 2 questions myself. First is about the game, PS5. Would it exceed in the long run the accumulated sales of PS4 of 100 million? Yes, it is a challenge, but we are very eager and committed to succeed and surpass the aggregated unit sales of PS4.

謝謝你。讓我自己解決這兩個問題。首先是關於遊戲，PS5。長期來看會不會超過PS4的累計銷量1億？是的，這是一個挑戰，但我們非常渴望並致力於成功並超越 PS4 的總銷量。

Now do you think that we would change the direction of development? As I have mentioned earlier, right now, for a particular customer in China, we have provided the high-resolution, high value-added technology. But today, we have to change that direction in the near term. For 2021, we will try to capture more share using the commodity products.

現在你認為我們會改變發展方向嗎？正如我之前提到的，現在，我們為中國的一個特定客戶提供了高分辨率、高附加值的技術。但是今天，我們必須在短期內改變這個方向。 2021年，我們將嘗試使用商品產品來獲取更多份額。

On the custom-made products, it enjoys high added value. Once it is on the right track, it has so much potential to grow as a big business. But since it's custom in processes, you have to have a certain developmental lead time. Therefore, as I have mentioned earlier, we believe that earnings recovery in the full scale, we will have to wait until 2022. Thank you.

在定制產品上，具有很高的附加值。一旦走上正確的軌道，它就有很大的潛力發展成為一家大企業。但由於它是流程定制的，因此您必須有一定的開發提前期。因此，正如我之前提到的，我們認為盈利全面恢復，我們將不得不等到2022年。謝謝。

Next from Nishi Nippon Newspaper, [Ishida-san,] please. Please ask your question.

下一位來自西日本報紙，請[石田先生]。請提出你的問題。

I hope you can hear me.

我希望你能聽到我的聲音。

Yes, we can hear you.

是的，我們可以聽到你的聲音。

I'd like to withdraw my question because somebody else has already asked the question that I wanted to ask.

我想撤回我的問題，因為其他人已經問過我想問的問題。

Okay. Thank you. So I would like to move on to the next question. From Asahi Newspaper, [Suzuki-san], please?

好的。謝謝你。所以我想繼續下一個問題。朝日報紙，[鈴木先生]，好嗎？

[Suzuki] from Asahi. I hope you can hear me.

[鈴木] 來自旭。我希望你能聽到我的聲音。

Yes.

是的。

First question, anime business. So the Demon Slayer, you were talking about the Demon Slayer, specific numbers, what is the amount of contribution in the second quarter, also in the full year forecast? What is the amount that you're expecting?

第一個問題，動漫業務。那麼屠魔者，你說的是屠魔者，具體數字，第二季度的貢獻量是多少，也是全年預測？您期望的金額是多少？

And also second question, specific Chinese customer. So you mentioned that customer. Once again, I would like to know more about the numbers, the write-down of the inventory and beyond the next fiscal year -- or the full year forecast for this fiscal year. Do you have any numbers as to how much the impact would be? Could you share that to the extent that you can, please?

還有第二個問題，特定的中國客戶。所以你提到了那個客戶。再一次，我想了解更多關於數字、庫存減記以及下一財年之後的信息——或者本財年的全年預測。您對影響有多大有任何數字嗎？你能在力所能及的範圍內分享嗎？

Thank you. The first question regarding the Demon Slayer and in terms of numbers, quantitatively, what is the impact. Actually, as of now, it's been a very short time since the release. And so the full-fledged merchandising is only going to start from now. So I will refrain from talking about specific numbers as of now.

謝謝你。第一個問題，關於斬魔者，從數量上，數量上，影響是什麼。實際上，到目前為止，距離發布已經很短的時間了。因此，全面的商品推銷只能從現在開始。因此，到目前為止，我將避免談論具體數字。

And regarding the specific Chinese customer and its impact and how much impact there is, that was your second question. And once again, in the first half and the second half, there may be some reductions. And if you look at how much it has degraded, I think you can see that there has been an impact beyond the difference between the first half and the second half. And that gap, as I mentioned in my speech, have been offset by other customers' business. So we have been able to recover for that gap due to other customers' business. Thank you.

關於具體的中國客戶及其影響以及影響有多大，這是您的第二個問題。再一次，在上半年和下半年，可能會有一些減少。如果你看看它退化了多少，我想你可以看到除了上半年和下半年之間的差異之外，還有影響。正如我在演講中提到的那樣，這一差距已被其他客戶的業務所抵消。因此，由於其他客戶的業務，我們已經能夠彌補這一差距。謝謝你。

Going on to the next question. Sorry, we were disrupted earlier. Financial Times, Inagaki-san, are you with us?

繼續下一個問題。抱歉，我們之前被打擾了。金融時報，稻垣先生，你和我們在一起嗎？

Sorry about the disruption earlier. Can you hear me?

很抱歉之前的中斷。你能聽到我嗎？

Yes.

是的。

Yes. I am Inagaki from Financial Times. And there have been questions about the Chinese customer, and that's what I'd like to ask about. The other day, Samsung Electronics OLED panel, permission was given by the U.S. government, that is, for supplying to the Chinese market. They made that clear. So the similar special transaction, maybe you will get that license? And do you expect to get the license? And in the second half -- will you have an estimate for the second half? And for example, what about the possibility to resume the transaction?

是的。我是金融時報的稻垣。還有一些關於中國客戶的問題，這就是我想問的。前幾天，三星電子的OLED面板，獲得了美國政府的許可，即供應中國市場。他們說得很清楚。那麼類似的特殊交易，也許你會得到那個許可證？您希望獲得許可證嗎？下半年——你會對下半年有一個估計嗎？例如，恢復交易的可能性如何？

And another question, second question that is, about games. In the financial statement, there is a third-party soft -- other company's software is delayed. It was mentioned. And what is the extent of the delay? And in your in-house studio, is there a similar delay that you see? And towards the launch of PS5, I think you are making preparation. And how much impact will the delay have?

還有一個問題，第二個問題，關於遊戲。在財務報表中，有一個第三方軟件——其他公司的軟件被延遲了。有人提到過。延遲的程度如何？在您的內部工作室中，您是否看到類似的延遲？而對於PS5的推出，我想你們正在做準備。延遲會有多大影響？

Thank you for those questions. About the export license, I would like to refrain from commenting. And with regards to whether the transactions can be resumed, what I can say at the present time is for this fiscal year estimate, after September 15, the transactions have not been included.

謝謝你的這些問題。關於出口許可證，我不想發表評論。而關於能否恢復交易，我目前能說的是這個財年的預估，9月15日之後的交易，還沒有包括在內。

And about games, that is, third-party software development is delayed somewhat. And in-house too, is there a delay, is your question. And the delay in development is not just due to COVID, but -- well, it happens even without COVID, and you have to recover. And in other development times, we see this happening. So our understanding is that there is no delay that will impact the PS5 launch in a big way.

而關於遊戲，也就是第三方軟件開發有些滯後。在內部也是如此，是否存在延遲，這是您的問題。開發延遲不僅是由於 COVID，而且 - 好吧，即使沒有 COVID，它也會發生，你必須恢復。在其他發展時期，我們看到這種情況正在發生。所以我們的理解是，不會有任何延遲會對 PS5 的發布產生重大影響。

We would like to move to the next question. Nikkei Asia Review, Nagao-san, it's your turn.

我們想轉到下一個問題。日經亞洲評論，長尾先生，輪到你了。

I hope I'm being heard.

我希望我被聽到了。

Yes, it's clear.

是的，很清楚。

For the full year forecast, as of August, PS5, cost was apparently going to be increased. But overall, the Game business seems to be doing quite well with the contribution of PS5 vis-à-vis the overall performance of this category. And I'm sure the increase of the business of PS4 is contributing the -- compared to first quarter, the second quarter user ARPU has been declining. So this is for the PS Plus -- for PS5 contribution for the full year.

對於全年的預測，截至 8 月，PS5 的成本顯然會增加。但總體而言，遊戲業務似乎表現得相當不錯，PS5 相對於這一類別的整體表現的貢獻。而且我敢肯定，PS4 業務的增長正在促成——與第一季度相比，第二季度的用戶 ARPU 一直在下降。所以這是針對 PS Plus 的——針對 PS5 全年的貢獻。

Are you asking about the contribution of hardware sales of PS5?

你問的是PS5硬件銷量的貢獻嗎？

Well, that was my understanding, so let me respond to that question. PS5 hardware, it's not the earnings contribution that we expect, but I think it will be a negative contribution for the time being. But having said that, I would like to state that penetration, the increase of PS5 in the market would urge customers to buy the software. So overall, as a business, the PS5 ecosystem will be activated, and in consequence, would grow earnings.

嗯，這是我的理解，所以讓我來回答這個問題。 PS5硬件，不是我們預期的盈利貢獻，但我認為暫時會是負貢獻。但話雖如此，我想說的是滲透率，市場上 PS5 的增加會促使客戶購買該軟件。因此，總體而言，作為一家企業，PS5 生態系統將被激活，從而增加收益。

Now MAU, how do we see the decline of MAU from the first quarter. MAU, the total number of hours being played by our customers. I think it was in April when we recorded the peak, where people stayed at home. But more recently, compared to the previous year, I believe that it has come down to 30% increase versus the same period of last year. So that changed trend has been reflected in what you have stated. But things have stabilized. So as far as the second quarter or second half is concerned, we believe that the current level will be sustained.

現在MAU，我們怎麼看MAU從一季度開始下降。 MAU，我們的客戶正在玩的總小時數。我認為是在 4 月，我們記錄了高峰期，當時人們都呆在家裡。但最近，與去年相比，我相信它比去年同期增長了 30%。因此，這種變化的趨勢已反映在您所說的內容中。但事情已經穩定下來。所以就第二季度或下半年而言，我們認為目前的水平會持續下去。

Thank you. I think we are running out of time. So the next question shall be the last question. From Nikkan Kogyo Shimbun, [Kunihiro-san] please.

謝謝你。我認為我們的時間不多了。所以下一個問題應該是最後一個問題。日刊工業新聞，請[國廣先生]。

Kunihiro from Nikkan Kogyo Newspaper. I hope you can hear me.

日刊工業報社的國弘。我希望你能聽到我的聲音。

Yes, we can hear you.

是的，我們可以聽到你的聲音。

November 3 in the U.S., there will be presidential elections in the U.S. And are there foreign exchange rate or any impact on your business? And how do you view the impact from the presidential elections in the U.S.?

11月3日在美國，美國將舉行總統選舉，匯率或對您的業務有影響嗎？您如何看待美國總統選舉的影響？

Thank you. Yes, we are monitoring it very carefully. But for now, depending on the results of the election, the full year forecast is not to be impacted. That's our view right now. That's all.

謝謝你。是的，我們正在非常仔細地監控它。但就目前而言，根據選舉結果，全年預測不會受到影響。這就是我們現在的看法。就這樣。

Thank you for the many questions. So it is time to close this session with the members of the media. So those analysts who will be participating in the next session, please wait until 4:46. We need to change the membership of the persons responding to the questions. Starting at 4:46.

謝謝你的許多問題。因此，是時候與媒體成員結束本次會議了。所以下期要參加的分析師們，請等到4:46。我們需要更改回答問題的人員的成員資格。 4點46分開始。

Thank you for your patience. We would now like to take the questions from our investors and analysts. I am acting as the emcee, and I am Hayakawa, in charge of Finance and IR.

感謝您的耐心等待。我們現在想回答投資者和分析師的問題。我擔任司儀，我是Hayakawa，負責財務和IR。

To answer your questions, we have Hiroki Totoki, CFO, Executive Deputy President; we have Senior VP from Corporate Planning and Control, Finance and IR, Naomi Matsuoka; and Hirotoshi Korenaga, Senior General Manager, Global Accounting Division and Senior Vice President.

為了回答您的問題，我們請來了首席財務官、執行副總裁 Hiroki Totoki；我們有來自企業規劃和控制、財務和 IR 的高級副總裁 Naomi Matsuoka；以及全球會計部高級總經理兼高級副總裁 Hirotoshi Korenaga。

(Operator Instructions) So let us now start. (Operator Instructions) JPMorgan, Ayada-san?

（操作員說明）所以讓我們現在開始吧。 （操作員說明）摩根大通，綾田先生？

This is Ayada of JPMorgan. I&SS and Games, 2 questions, please. First question, the image sensors, Totoki-san gave an explanation earlier toward next year that you could recover shares on a volume basis. And can you give the reason? In other words, the market doesn't have supply capacity so customers have to come to you? Or maybe you will work hard to regain shares with pricing? So can you talk about this process?

這是摩根大通的綾田。 I&SS 和 Games，請回答 2 個問題。第一個問題，圖像傳感器，Totoki 先生在明年早些時候給出了一個解釋，即你可以在數量基礎上收回份額。你能說出原因嗎？換句話說，市場沒有供應能力，所以客戶必須來找你？或者，也許您會努力通過定價重新獲得份額？那麼你能談談這個過程嗎？

And after that, probably, it's going to link to the custom products market share increase. So compared to your competitors, the catalog specification, high-resolution, higher-definition, maybe it's a different customer, and you seem to be a bit behind. So is it a level that can be adjusted? It's not a fundamental problem. I'd like to confirm that.

在那之後，可能會與定制產品市場份額的增加有關。所以和你的競爭對手相比，目錄規格，高分辨率，更高的清晰度，也許是不同的客戶，你似乎有點落後。那麼它是一個可以調整的水平嗎？這不是一個根本問題。我想確認一下。

And then the second question, if I may go on, is about games. The slide you showed at the end, next year, it seems that Games is sunny. And so the background of this, next year, stay-at-home demand will decelerate and there will be -- the improvement of cycle the of the new PS5, is that going to be the absorbing factor?

然後第二個問題，如果我可以繼續的話，是關於遊戲的。你在最後展示的幻燈片，明年，似乎奧運會是陽光明媚的。所以在這樣的背景下，明年居家需求會減速，並且會有——新PS5的周期改善，這會是吸收因素嗎？

And in connection with that, add-ons and software sales, network, next year, it will be maintained at a high level. It will not go down. Is that the right understanding? That's all.

與此相關，附加組件和軟件銷售、網絡，明年將保持在高水平。它不會下降。這是正確的理解嗎？就這樣。

Thank you for those questions. First of all, I&SS question, towards next year to regain share. And next year, as you say, probably, 0.7 micron, this fine scale will be the main battlefield -- fine pixel, and we have to catch up. And if it -- well, it's the commodity, so for price, we will have to make efforts. And so more than higher-resolution, the margin will fall. However, to an extent, we will commit that to get share and we will expand our customer base. And having done that, higher-quality, higher-resolution will be pursued. And there are customer needs in that direction, so it will be supported. And on both fronts and towards 2022, our business foundation will be upgraded.

謝謝你的這些問題。首先，I&SS 問題，明年重新獲得份額。而明年，如你所說，大概，0.7微米，這個精細的尺度將是主戰場——精細像素，我們要迎頭趕上。如果它 - 好吧，它是商品，所以對於價格，我們將不得不努力。因此，比更高分辨率，利潤率會下降。但是，在某種程度上，我們將致力於獲得份額，我們將擴大我們的客戶群。這樣做之後，將追求更高質量、更高分辨率。並且在這個方向上有客戶需求，因此將得到支持。在這兩個方面，到 2022 年，我們的業務基礎將得到升級。

And the second question about Games. So that there's no misunderstanding, I'd like to say upfront, for the next year onwards, in terms of business momentum, we showed the picture. And it's not the results forecast, so please look at this from that perspective. The reason why it's sunny, well, we have very strong PS5 customer demand and reputation. And the lineup, the software strength is there. So next year, the customer base, we believe, can be expanded even more. There's that expectation. So mid- to long term, the service will be reinforced and recurring revenue will be increased. So it's not so much the single year, but rather over the mid- to long term what kind of expansion can be realized. That's where we see the essence of competition.

第二個關於遊戲的問題。為了沒有誤解，我想提前說，從明年開始，就業務勢頭而言，我們展示了圖片。這不是結果預測，所以請從這個角度來看。之所以陽光明媚，嗯，我們有很強的PS5客戶需求和口碑。而且陣容，軟件實力都有。所以明年，我們相信，客戶群可以進一步擴大。有這樣的期待。因此，從中長期來看，服務將得到加強，經常性收入將增加。因此，與其說是單年，不如說是中長期可以實現什麼樣的擴張。這就是我們看到競爭的本質的地方。

We would like to move on to the next question. Ezawa-san from Citigroup Securities. Mr. Ezawa-san, can you hear us? Ezawa-sama?

我們想繼續下一個問題。花旗證券的江澤先生。江澤先生，您能聽到我們的聲音嗎？江澤大人？

Apparently, there is a telecommunication difficulty. So let us move on to the next person. From Mizuho Securities, Nakane-san.

顯然，有一個電信困難。因此，讓我們繼續討論下一個人。來自瑞穗證券，中根先生。

My name is Nakane. I have 2 questions. The operating income for the full year, you made a revision. The second quarter, it went up. Some had been realized already. But in the second half, well, you do expect some upward impact. Can you give the details by segment? That's the first question.

我的名字是中根。我有 2 個問題。全年的營業收入，你做了一個修正。第二季，漲了。有些已經意識到了。但在下半年，你確實預計會有一些上行影響。能不能分段詳細說一下？這是第一個問題。

The second question. You always stated the number of input, the capacity at the end of the year and the capacity and the prospects for the operation, capacity utilization and the end of the year inventory. The JPY 17.5 billion of write-down, is it for customer products -- rather, commodity product? Can you sell to alternative customers if it's a commodity that you have written down?

第二個問題。你總是說明投入的數量、年末產能以及產能和運營前景、產能利用率和年末庫存。 175億日元的減記，是針對客戶產品——而不是商品產品嗎？如果它是你記下的商品，你能賣給其他客戶嗎？

The first question, this is on a consolidated basis, I think you're referring to the question of the balance between the first and second half. The numbers, I think, are self-explanatory. The first half was a good half period, and it looks that it will deteriorate in the second half. But most of them are temporary short-term impacts.

第一個問題，這個是綜合的，我想你說的是上半場和下半場的平衡問題。我認為這些數字是不言自明的。上半場表現不錯，下半場似乎會惡化。但其中大部分是暫時的短期影響。

And let me explain by each segment. First, Game & Network Services, second half, we would incur costs to launch PS5. And stay-at-home demand, of course, that demand was stronger in the first half. So that trend is impacting.

讓我按每個部分來解釋。首先，遊戲和網絡服務，下半年，我們將承擔推出 PS5 的成本。當然，居家需求在上半年更加強勁。所以這種趨勢正在產生影響。

Music, onetime impact, there has been a transfer of certain business. Onetime gain was recorded in the Music.

音樂，曾經的影響，已經有一定的業務轉移。曾經的收穫被記錄在音樂中。

Pictures, theatrical release requires marketing costs, and we anticipate that there will be increased marketing cost. There are very few, if any, during the first half, the theatrical release. Therefore, the second half, there will be no merchandising almost. Therefore, the second half numbers would look forward than the first half.

圖片、院線上映需要營銷成本，我們預計會增加營銷成本。上半場上映的影片很少，如果有的話。因此，下半年，幾乎不會有商品推銷。因此，下半場的數字會比上半場期待。

EP&S, the first half, structural reform cost had increased. We anticipate the increase of structural reform cost.

EP&S，上半年，結構性改革成本有所增加。我們預計結構性改革成本會增加。

I&SS, the second half, the shipment has been terminated to a certain Chinese customer. So we are not incorporating any business to that customer during the second half. So there is an inventory adjustment that would affect the capacity utilization of our facility. I shall revisit this later.

I&SS，下半年，已終止向某中國客戶發貨。因此，我們不會在下半年向該客戶合併任何業務。因此，庫存調整會影響我們設施的產能利用率。稍後我將重溫這一點。

Financial Services, Sony Bank. There were valuation gains for the securities at the Sony Bank.

金融服務，索尼銀行。索尼銀行的證券有估值收益。

Others enumeration, first, there has been an increase of new business development. But if you look at the overall picture, the business momentum, the actual strength, I think it is fair to say that to really understand our strength, you should look at the entire year, the full year.

其他人列舉，一是新業務發展有所增加。但是如果看大局，看業務的勢頭，看實力，我覺得可以說，要真正了解我們的實力，就應該看全年，看全年。

Now I&SS, the wafer input and the capacity -- third quarter master input, the average is 30,000 for 3 months. But right now, we are doing about 85%, which is 110,000. During the fourth quarter, the master, it will be at the bottom range of our forecast. So we would adjust production, and it will be less than 70% of the capacity. That is our assumption as of today. But this does not reflect any possible increase of orders in the future. Should there be an increased order from our customers, the numbers would improve or will be higher.

現在I&SS，晶圓投入和產能——第三季度主投入，3個月平均3萬片。但現在，我們做了大約 85%，也就是 110,000。第四季度，大師，它將在我們預測的底部範圍內。所以我們會調整生產，它會不到產能的70%。這是我們今天的假設。但這並不反映未來訂單可能會增加。如果我們客戶的訂單增加，數字將會提高或更高。

About the inventory, the fourth quarter, how much we will be receiving in terms of order, will there be incremental demand order, and also the strength of the demand in the first part of next fiscal year. We will have to observe those and also look at the inventory level at the end of the year to determine what we would do, what should be the right inventory level. So at this point of time, it is too premature to give you any indication. But our assumption for forecast is strategic inventory. We -- the simulation doesn't assume the strategic inventory, but of course, we would like to be flexible because demand would be a determinant. I think there will be a reasonable amount of additional order.

關於庫存，第四季度我們將收到多少訂單，是否會有增量需求訂單，以及下一財年上半年的需求強度。我們將不得不觀察這些，並在年底查看庫存水平，以確定我們將做什麼，什麼應該是正確的庫存水平。所以在這個時候，給你任何跡像還為時過早。但我們的預測假設是戰略庫存。我們 - 模擬不假設戰略庫存，但當然，我們希望靈活，因為需求將是一個決定因素。我認為會有合理數量的額外訂單。

Now write-downs, the sales -- the majority is about the sales to this specific certain customer, customs and commodity. But it's fair to say the customs would be greater than commodity in terms of volume.

現在減記，銷售——大部分是關於對這個特定的特定客戶、海關和商品的銷售。但公平地說，就數量而言，海關將大於商品。

Next question from Morgan Stanley MUFG Securities, Ono-san, please?

摩根士丹利三菱日聯證券的下一個問題，小野山，好嗎？

Morgan Stanley, I'm Ono. Two questions. First question, a more general question, and the other one is related to gaming strategy. So in the third -- or in the second quarter, in the results, I think the overall results are very strong and I think it's very favorable. But according to you, Mr. Totoki, in the major segments, the ability to generate profits under this COVID-19 situation, you have converted it to opportunity. And for next fiscal year, are you going to continue to change -- and is there anything that you think that you can continue to make things turn more favorable throughout the next year? Please share with us.

摩根士丹利，我是小野。兩個問題。第一個問題，一個比較籠統的問題，另一個是和遊戲策略有關的。因此，在第三季度或第二季度的結果中，我認為總體結果非常強勁，而且我認為這是非常有利的。但是根據您，Totoki 先生，在主要領域，在這種 COVID-19 情況下產生利潤的能力，您已將其轉化為機會。對於下一個財政年度，你是否會繼續改變——你認為有什麼可以繼續讓事情在明年變得更有利的事情嗎？請與我們分享。

Secondly, regarding strategy for Game. You have invested in Epic Games last year. So you're going to have business relationship with publishers. And I think you're going to have some stake with -- are you going to have some kind of action with these publishers? Is it something that you're going to make it a norm? And you've been talking about the content, the gaming content is what you're going to be aggressively acquiring. So that position has not changed? Or are you being a little bit more aggressive than before? Can you share with us the tone with which you are addressing these partners?

其次，關於遊戲的策略。你去年投資了 Epic Games。因此，您將與出版商建立業務關係。而且我認為您將與--您將與這些出版商採取某種行動嗎？你要讓它成為一種規範嗎？你一直在談論內容，遊戲內容是你將積極獲取的內容。所以那個位置沒有改變？還是你比以前更有侵略性了？您能否與我們分享您對這些合作夥伴的語氣？

So regarding the major segments, the profit-generating capacity and the fell that I have on the businesses. So as I mentioned in my speech, the biggest feel that I have is that under the COVID-19 situation, people cannot report to work, people have to work remotely. Even with that restrictions, it was possible that the business can be executed with a lot of effort by the people. And there's creativity included in it. But I think that is the best finding that I had in the COVID-19 situation.

因此，關於主要細分市場，盈利能力和我對業務的影響。所以正如我在演講中提到的，我最大的感受是，在 COVID-19 的情況下，人們不能上班，人們必須遠程工作。即使有這些限制，人們也有可能通過大量的努力來執行業務。並且其中包含了創造力。但我認為這是我在 COVID-19 情況下的最佳發現。

And under these circumstances, people still have this demand for entertainment. And actually, there's increased appetite for entertainment, and that is something that I also felt strongly about during this COVID-19 period. So if I may, for each of the segments, I do feel that there is a good feel.

而在這種情況下，人們還是有這種娛樂需求的。實際上，人們對娛樂的需求增加了，這也是我在 COVID-19 期間強烈感受到的。因此，如果可以的話，對於每個部分，我確實覺得有一種很好的感覺。

And for Financial Services, Sony Life, the life planners have been working face-to-face. But with the remote consulting services, we are now back in terms of acquiring new contracts compared to the previous year. So I think with remote activities, we can still capture opportunities and grow the business.

對於金融服務和索尼人壽，生活規劃師一直在面對面工作。但是通過遠程諮詢服務，與去年相比，我們現在在獲得新合同方面又回來了。所以我認為通過遠程活動，我們仍然可以抓住機會並發展業務。

Regarding your question about the games, the relationship with the publishers and do we have to have a stake in the publisher. No, we don't think so. If you have a lot of items for engagement or alliance or if you have an in-depth alliance, maybe this capital relationship is probably going to be favorable as a strategy. But in any case, we want to have access to high-quality content on our platform so that we can deliver these contents to our customers. And that is a goal and it remains unchanged. So we would like to have access to good content as much as we can. Thank you.

關於你關於遊戲的問題，與發行商的關係以及我們是否必須在發行商中佔有一席之地。不，我們不這麼認為。如果你有很多參與或結盟的項目，或者如果你有一個深入的聯盟，那麼這種資本關係可能會成為一種有利的策略。但無論如何，我們希望能夠訪問我們平台上的高質量內容，以便我們可以將這些內容交付給我們的客戶。這是一個目標，它保持不變。因此，我們希望盡可能多地訪問優質內容。謝謝你。

Next question, Ezawa-san from Citigroup.

下一個問題，花旗集團的江澤先生。

Sorry, I had some problems. This is Ezawa from Citigroup. I would like to ask 2 questions. First question, Pictures business. In the second half, you have the company plan in terms of results, and I think the view is quite severe. But subcategory, Motion Pictures, what is the profit level? And theatrical and secondaries, along with time, I think that there will be some differences. So if you could talk about the digital aspects, I'd like to hear that. And I think you said it will take a few years for recovery. So for the next year, how are you going to recover the Pictures business? I would like to hear some kind of breakdown. That's the first question.

抱歉，我遇到了一些問題。我是花旗集團的江澤。我想問2個問題。第一個問題，圖片業務。下半年，你有公司的業績規劃，我覺得這個觀點比較嚴厲。但子品類，電影，利潤水平如何？而劇場版和次要的，隨著時間的推移，我認為會有一些差異。所以如果你能談談數字方面，我想听聽。我想你說過需要幾年的時間才能恢復。那麼明年，您將如何恢復圖片業務？我想听聽某種故障。這是第一個問題。

Second question, capital allocation. Now this time, operating cash flow plan has been revised upward, I think. And so you -- this is favorable. On the other hand, capital investment, I think that's been lowered or revised downward. So free cash flow, the way you use money, the money coming out, how is it going to be allocated? Some new additional cash flow, what are you going to do with it? I'd like to hear your present thoughts.

第二個問題，資金配置。現在這一次，我認為經營現金流計劃已經向上修訂。所以你 - 這是有利的。另一方面，資本投資，我認為已經降低或向下修正。那麼自由現金流，你用錢的方式，出來的錢，將如何分配？一些新的額外現金流，你打算用它做什麼？我想听聽你現在的想法。

Thank you for the questions. And the first question about Pictures, that is the breakdown of the segments. What's the image of the breakdown is the question.

謝謝你的提問。關於圖片的第一個問題，就是細分的細分。什麼是故障的圖像是問題。

And Matsuoka-san, if you could answer. Matsuoka-san, please.

還有鬆岡先生，如果你能回答的話。松岡先生，請。

Yes. Matsuoka speaking. So the image of profit contribution in the future, what will happen, I would have to speak in that way. I cannot really speak quantitatively. The production of Pictures this fiscal year compared to the previous year, there's almost no releases. So that being the situation, you have what came out last year. And those movies can be for home entertainment or for streaming, and there could be sales there or income derived from those routes, which is not coming out this year.

是的。松岡說。所以未來利潤貢獻的形象，會發生什麼，我就不得不這麼說。我真的不能定量地說。本財年的影片製作與上一年相比，幾乎沒有上映。所以在這種情況下，你有去年出現的情況。這些電影可以用於家庭娛樂或流媒體，並且可能有銷售或來自這些路線的收入，今年不會出現。

On the other hand, the first half, there was no big movies coming out. But in the second half, we expect there will be some resumption. And if that's the premise, then that means in advance of that, there will be marketing costs involved. But it will be marketing and release with a delay, and we will have to recoup. And so you usually have a theatrical release, and with that performance, you have home entertainment profits. And so that will be seeing a delay.

另一方面，上半年沒有大片上映。但在下半年，我們預計會有一些恢復。如果這是前提，那麼這意味著在此之前，將涉及營銷成本。但這將是延遲的營銷和發布，我們將不得不收回。所以你通常有一個戲劇發行，有了那個表演，你就有了家庭娛樂的利潤。所以這將是一個延遲。

Therefore, naturally, after the release, whether we the movie will be a hit, well, that will be one factor. And with COVID, what will happen to the theatrical releases, that's an uncertain factor. But that is the structure. And other segments can make up for that is, my prediction, media networks and TV programming.

所以，很自然，上映之後，我們這部電影是否會火，嗯，那將是一個因素。對於 COVID，影院上映會發生什麼，這是一個不確定的因素。但這就是結構。其他部分可以彌補這一點，即我的預測、媒體網絡和電視節目。

Now about capital allocation, let me give you the answer. So first quarter results, that is a change. If I may explain that, this time, cash flow, JPY 80 billion upward revision is same. And CapEx is a reduction from what we showed you last time. And strategic investment, there's no change in policy.

現在關於資本配置，讓我給你答案。所以第一季度的結果，這是一個變化。如果我可以解釋一下，這一次，現金流，向上修正 800 億日元是一樣的。資本支出比我們上次向您展示的有所減少。和戰略投資，政策沒有變化。

And the previous announcement, as we said, is if it's -- other than it being a wholly-owned subsidiary, there's about JPY 300 billion of strategic investment. And in this JPY 300 billion, there's also already Bilibili and Epic investment, JPY 70 million, and we have JPY 100 billion possibility of stock repurchase.

正如我們所說，之前的公告是，如果它是 - 除了作為全資子公司之外，還有大約 3000 億日元的戰略投資。而在這3000億日元中，也已經有了Bilibili和Epic的投資，7000萬日元，我們還有1000億日元的股票回購可能性。

So recently, there are increase in M&A opportunities. That's my feel. And so in that sense, in various segments, there are opportunities for strategic investment. Therefore, we have to have a good analysis and conduct the strategic investments in a timely manner.

所以最近，併購機會增加了。這就是我的感覺。所以從這個意義上說，在各個領域，都有戰略投資的機會。因此，我們必須做好分析，及時進行戰略投資。

I'm afraid time is running short. So we will take the last question. SMBC Nikko, Katsura-san.

恐怕時間不多了。所以我們將回答最後一個問題。 SMBC 日光，桂先生。

I&SS and EP&S would be the singular question. I&SS, you've given some numbers. During the July-September period, the master input, can you give me the number for July, September period? The write-downs, JPY 17.5 billion. And since 15th of September, the business is 0. But in the meantime, I believe that you have obtained a license to export. And if you are allowed to export -- of course, in 2016/'19 period, you have had a write-down, but you were able to resume the business and you were able to reverse and revise the forecast. Would the same should happen this time, should you have the license granted?

I&SS 和 EP&S 將是唯一的問題。 I&SS，你已經給出了一些數字。 7-9月期間，高手輸入，可以給我7、9月期間的數字嗎？減記175億日元。從9月15日起，生意為0。但與此同時，我相信你們已經獲得了出口許可證。如果你被允許出口——當然，在 2016/'19 期間，你有一個減記，但你能夠恢復業務，你能夠扭轉和修改預測。如果您獲得許可，這次也會發生同樣的情況嗎？

The -- another is EP&S. On Page 19 of the slide, even if you exclude the mobile, both the top and bottom lines are increasing. TV is doing well. The digital cameras, the unit numbers are declining. But the HE&S and IP&S, if you could dig deep into those areas.

另一個是EP&S。在幻燈片的第 19 頁上，即使您排除了移動設備，頂線和底線也在增加。電視做得很好。數碼相機的單位數量正在下降。但是 HE&S 和 IP&S，如果你能深入挖掘這些領域的話。

And also in the last slide, you talk about the momentum. EP&S, there are some sun rays coming out after the cloudy weather. Is this because the COVID-19 would go away? Or are there any other factors that would affect this sector favorably?

在最後一張幻燈片中，您還談到了勢頭。 EP&S，陰天后有一些太陽光線出來。這是因為 COVID-19 會消失嗎？或者還有其他因素會對該行業產生有利影響嗎？

I&SS, the second quarter, the actuals, what is the number of wafer. As I have stated earlier, the capacity is 130,000 and the average is 110,000. That's the average. For mobile communication and digital cameras, there has been some production adjustment. And there were special factors during the second quarter. There was statutory inspection in some plants. So for a short period of time, the wafer number has declined because of the inspection.

I&SS，第二季度，實際情況，晶圓數量是多少。正如我之前所說，容量是130,000，平均為110,000。那是平均水平。移動通訊和數碼相機方面，也有一些生產調整。第二季度有一些特殊因素。一些工廠進行了法定檢查。所以在很短的一段時間內，晶圓數量因為檢查而下降。

EP&S, second quarter, even without the mobile, the numbers have gone up, earning some profitability. The contributor is TV. TV's contribution is the largest, followed by digital camera. That's by category.

EP&S，第二季度，即使沒有手機，數字也上升了，獲得了一些盈利。投稿人是電視台。電視的貢獻最大，其次是數碼相機。那是按類別。

The weather remarks, we are looking at the momentum as of today until next year or beyond. It does not represent our forecast or performance or projection performance. Please do not be misled. But why can we improve? That is the first quarter, EP&S negative impact from the corona, COVID-19, was quite significant in terms of revenue and earnings. But this will be alleviated. The adverse impact will be alleviated. Of course, there will be regional differences. There could be the second and third wave in certain geographical areas. But I think we know better how to adapt to such environment. We believe that we can better accommodate the new environment. So overall, there will be an improvement.

天氣評論，我們正在關注從今天到明年或以後的勢頭。它不代表我們的預測或業績或預測業績。請不要被誤導。但為什麼我們可以改進？那是第一季度，新冠肺炎 COVID-19 對 EP&S 的負面影響在收入和收益方面非常顯著。但這會有所緩解。不利影響將有所緩解。當然，會有地區差異。在某些地理區域可能會出現第二波和第三波。但我認為我們更清楚如何適應這樣的環境。我們相信我們可以更好地適應新環境。所以總的來說，會有進步。

Thank you. Ladies and gentlemen, the time has come up to close this earnings announcement by Sony Corporation. Thank you very much for your participation.

謝謝你。女士們，先生們，是時候結束索尼公司的財報公告了。非常感謝您的參與。