索尼 (SONY) 2023 Q2 法說會逐字稿

We'd now like to begin Sony Group earnings announcement. I will be serving as the moderator. I am from Corporate Communications. My name is [Okada].

我們現在想開始索尼集團的收益公告。我將擔任主持人。我來自企業傳播部。我的名字是[岡田]。

First, Executive Deputy President and CFO, Totoki, will present the FY 2022 second quarter earnings and FY 2022 forecast, followed by Q&A. In total, we are scheduling for 70 minutes.

首先，執行副總裁兼首席財務官 Totoki 將介紹 2022 財年第二季度收益和 2022 財年預測，然後進行問答。我們總共安排了 70 分鐘。

With no further ado, Mr. Totoki, please.

事不宜遲，Totoki 先生，請。

Today, I would like to start by talking about the business environment surrounding Sony. We recognize that the risk global economy slowing down is increasing further due to the factors such as rising tensions between the U.S. and China, soaring energy prices and expanding inflationary pressure as well as rapid interest rate hikes on various countries -- in various countries. We are taking steps to prepare for further deterioration of the business environment in each of our businesses, especially in Entertainment, Technology and Services, ET&S, and Imaging & Sensing Solutions, I&SS, which are relatively more sensitive to an economic recession.

今天，我想先談談圍繞索尼的商業環境。我們認識到，受中美關係緊張加劇、能源價格飆升和通脹壓力擴大以及各國加息加速等因素影響，全球經濟放緩的風險正在進一步加大。我們正在採取措施為我們每項業務的商業環境進一步惡化做好準備，特別是在娛樂、技術和服務、ET&S 以及成像和傳感解決方案、I&SS 方面，它們對經濟衰退相對更為敏感。

Now I'd like to explain the following. The consolidated results for the second quarter ended September 30, FY '22, Q2 and the consolidated results. Consolidated sales for the quarter increased 16% compared to the same quarter of the previous fiscal year year-on-year to JPY 2,751.9 billion, and consolidated operating income increased JPY 25.6 billion to JPY 344.0 billion, both record highs for the second quarter and first half. Income before income taxes increased JPY 62.7 billion year-on-year to JPY 345.8 billion, and net income attributable to Sony Group Corporation shareholders increased JPY 50.9 billion at JPY 264.0 billion.

現在我想解釋以下內容。截至 9 月 30 日、FY '22、Q2 的第二季度綜合業績和綜合業績。本季度合併銷售額較上一財年同期增長 16% 至 27,519 億日元，合併營業收入增長 256 億日元至 3,440 億日元，均為第二季度和第一季度的歷史新高一半。所得稅前收入同比增加 627 億日元至 3,458 億日元，歸屬於索尼集團股東的淨利潤增加 509 億日元至 2,640 億日元。

This shows the results by segment for FY '22 Q2. Next, I'll explain the FY '22 consolidated earnings forecast. The forecast for consolidated sales is JPY 11.600 trillion, an increase of JPY 100 billion from the previous forecast. The forecast for operating income is upward revised to JPY 1.160 trillion, an increase of JPY 50 billion and the same amount that forecasted at the beginning of fiscal year. The forecast for consolidated operating cash flow excluding Financial Services segment is unchanged. The assumed foreign exchange rates are approximately JPY 140 to the U.S. dollar, approximately JPY 138 to the euro.

這顯示了 FY '22 Q2 的細分結果。接下來，我將解釋 22 財年的綜合收益預測。綜合銷售額預測為11600萬億日元，比之前的預測增加1000億日元。營業收入預測上調至 1.160 萬億日元，增加 500 億日元，與年初的預測相同。對不包括金融服務部門的綜合經營現金流的預測保持不變。假設的外匯匯率約為 140 日元兌美元，約 138 日元兌歐元。

The forecast for each segment is as follows. I'll now explain the situation in each of our business segments.

每個細分市場的預測如下。我現在將解釋我們每個業務部門的情況。

First, the Game & Network Services, G&NS, segment. Q2 sales increased 12% year-on-year to JPY 720.7 billion, primarily due to the impact of foreign exchange rates despite a decrease in sales of third-party software. Operating income decreased a significant JPY 40.5 billion year-on-year to JPY 42.1 billion, primarily due to the recording of expenses associated with acquisitions, including Bungie, Inc.; an increase in software development costs; and the negative impact of foreign exchange rates, partially offset by a decrease in losses on hardware.

首先，遊戲和網絡服務，G&NS，部分。第二季度銷售額同比增長 12% 至 7207 億日元，這主要是由於儘管第三方軟件的銷售額有所下降，但受到外匯匯率的影響。營業收入同比大幅下降 405 億日元至 421 億日元，主要是由於記錄了與收購相關的費用，包括 Bungie, Inc.；軟件開發成本增加；以及外匯匯率的負面影響，部分被硬件損失的減少所抵消。

The '22 sales are expected to be JPY 3.630 trillion, an increase of JPY 10 billion from the previous forecast due to the impact of foreign exchange rates, partially offset by reduction in the sales forecast for third-party software reflecting results of Q2. On the other hand, operating income is expected to be JPY 225 billion, a decrease of JPY 30 billion from the previous forecast.

受匯率影響，22 年銷售額預計為 3.630 萬億日元，比之前的預測增加 100 億日元，部分被反映第二季度業績的第三方軟件銷售額預測的下調所抵消。另一方面，營業收入預計為2250億日元，比之前的預測減少300億日元。

Regarding hardware profitability, we are expecting a slight improvement from the previous forecast due to price changes and cost reduction, partially offset by the negative impact of the foreign exchange rates. Regarding software profitability, we have downwardly revised our forecast because we think it will take more time for engagement to recover from its current low level.

在硬件盈利能力方面，由於價格變化和成本降低，我們預計比之前的預測略有改善，部分被外匯匯率的負面影響所抵消。關於軟件盈利能力，我們向下修正了我們的預測，因為我們認為參與度需要更多時間才能從目前的低水平恢復。

In addition, our forecast for expenses associated with acquisition is expected to increase from the previous forecast by JPY 4 billion due to the impact of foreign exchange rates and amount to approximately JPY 61 billion. Operating income, excluding the amount is estimated to be JPY 286 billion.

此外，由於匯率的影響，我們對收購相關費用的預測預計將比之前的預測增加 40 億日元，達到約 610 億日元。扣除金額後的營業收入預計為 2860 億日元。

Although a total gameplay time is spent by PlayStation users during Q2 increased slightly versus the previous quarter, it decreased 10% year-on-year, primarily due to the impact of an increase in opportunities to go outside, resulting from a reduction in COVID-19 infections. When we compare software sales for this quarter with the same period of the previous fiscal year, we see sales of past library titles decline sharply, while sales of major new titles remain strong. Users appear to be playing a smaller number of titles out of a desire to spend less money.

儘管 PlayStation 用戶在第二季度的總遊戲時間與上一季度相比略有增加，但同比下降了 10%，這主要是由於外出機會增加的影響，這是由於 COVID- 19 次感染。當我們將本季度的軟件銷售與上一財年同期進行比較時，我們發現過去圖書館圖書的銷售急劇下降，而主要新圖書的銷售依然強勁。出於希望少花錢的願望，用戶似乎正在玩較少數量的遊戲。

The number of PlayStation Plus subscribers and accounts at the end of September decreased 4% from the end of June to 45.4 million accounts. We see that this decrease results from a greater decline in user engagement amongst the PS4 users than expected.

9 月底的 PlayStation Plus 用戶和賬戶數量比 6 月底下降 4%，至 4540 萬個賬戶。我們看到這種下降是由於 PS4 用戶的用戶參與度下降幅度大於預期。

On the other hand, the ratio of PS Plus subscribers among PS5 users remains at a level significantly higher than that of PS4. We are putting even more effort into accelerating the penetration of PS5 hardware to recover this user engagement going forward.

另一方面，PS5 用戶中的 PS Plus 訂閱用戶比例保持在明顯高於 PS4 的水平。我們正在加大力度加速 PS5 硬件的滲透，以恢復這種用戶參與度。

Regarding production of PS5 hardware, restrictions on the supply of materials and logistics has significantly eased. And the number of units produced during the quarter exceeded 6.5 million, progressing faster than planned.

在 PS5 硬件生產方面，對材料和物流供應的限制已顯著緩解。本季度產量超過650萬台，進度快於計劃。

We recognize that demand from customers for PS5 continues to be strong as the actual sales situation at retail stores in the U.S. is such that, in September, it took an average of 17.5 hours to sell out 100,000 units after their arrival. To meet this strong demand, we will do our utmost to bring forward supply into the year and holiday selling season and aim to exceed our FY '22 forecast of 18 million units.

我們認識到，客戶對 PS5 的需求持續強勁，因為美國零售店的實際銷售情況是這樣的，即在 9 月份，他們到貨後平均需要 17.5 小時才能售罄 100,000 台。為了滿足這種強勁的需求，我們將盡最大努力將供應提前到今年和假日銷售季節，並力爭超過我們 22 財年預測的 1800 萬台。

In terms of first-party software, we plan to release a new popular franchise title, God of War Ragnarök, on November 9. The previous God of War released in 2018 was one of the largest titles ever released exclusively for PlayStation, selling 23 million units cumulatively to date. We expect similar performance from the new title as well.

在第一方軟件方面，我們計劃在 11 月 9 日發布新的熱門系列遊戲《戰神諸神黃昏》。2018 年發布的上一款戰神是 PlayStation 有史以來最大的遊戲之一，銷量達到 2300 萬迄今為止的累計單位。我們預計新遊戲也會有類似的表現。

Regarding Bungie, Destiny 2: The Witch Queen, Season of Plunder, which was released in August is off to a good start. In addition, we have announced Destiny 2: Lightfall, which is an expansion pack scheduled for release in February of next year, and we are receiving great expectations from fans as a result. In addition, Bungie's collaboration with PlayStation Studios is progressing well.

關於 Bungie，8 月發布的《命運 2：巫后掠奪季節》開局良好。此外，我們還公佈了預定於明年 2 月發售的資料片 Destiny 2: Lightfall，因此受到了粉絲們的極大期待。此外，Bungie 與 PlayStation Studios 的合作進展順利。

Regarding PS software, we released Marvel's Spider-Man in August and the popular IP that was also a hit movie, UNCHARTED: Legacy of Thieves Collection, in October. The titles have been rated highly, with Metacritic metascores of 87 and 88, respectively. And in the 2 months since the release, sales of Marvel's Spider-Man approached the highest level ever for a PC software title released by Sony.

在 PS 軟件方面，我們在 8 月發布了漫威的蜘蛛俠，並在 10 月發布了熱門電影《神秘海域：盜賊遺產》的熱門 IP。這些標題獲得了很高的評價，Metacritic 的 metascores 分別為 87 和 88。並且在發布後的兩個月裡，漫威蜘蛛俠的銷量接近了索尼發布的 PC 軟件的最高水平。

In this way, we are actively pursuing various measures to ensure increased user engagement and reaccelerating the growth of our game business from both the hardware and software perspectives. We expect to see the results of these efforts contribute to sales and profit in earnest from the second half of this fiscal year and next fiscal year.

通過這種方式，我們正在積極採取各種措施，以確保增加用戶參與度，並從硬件和軟件角度重新加速我們遊戲業務的增長。我們希望看到這些努力的結果從本財年下半年和下一財年開始真正為銷售和利潤做出貢獻。

Our next is the Music segment. Q2 sales increased a significant 32% year-on-year to JPY 359.3 billion, mainly due to the impact of foreign exchange rates and the increase in streaming sales. Operating income was JPY 78.7 billion, a significant increase of about JPY 28.1 billion year-on-year, mainly due to the positive impact of ForEx exchange rate and the increase in sales. The contribution of operating income from Visual Media and Platforms accounted for a mid-teens percentage of the operating income of the segment of the quarter.

我們的下一個是音樂部分。 Q2 銷售額同比大幅增長 32% 至 3593 億日元，主要是由於外匯匯率的影響和流媒體銷售額的增加。營業收入為787億日元，同比大幅增加約281億日元，主要是受外匯匯率的積極影響和銷售額的增加。視覺媒體和平台的營業收入貢獻佔本季度該部門營業收入的10%左右。

In the mobile game application, thanks to the collaboration with the Lasengle, which Aniplex acquired in February this year, our efforts to strengthen development and service are progressing smoothly. And our sales of Fate/Grand Order in the first of this fiscal year, which is the eighth year since launch of the title, exceeded the level of the first half of the previous fiscal year.

在手游應用方面，得益於與今年2月Aniplex收購的Lasengle的合作，我們加強開發和服務的努力進展順利。而在本財年第一年，也就是自推出以來的第八年，我們的《Fate/Grand Order》銷量超過了上一財年上半年的水平。

Primarily due to the impact of the foreign exchange rate and the result of the fiscal year so far, we upwardly revised both sales and operating income forecast: sales to JPY 1.770 trillion (sic) [JPY 1.370 trillion], an increase of JPY 90 billion on the previous forecast; and operating income, JPY 265 billion, an increase of JPY 35 billion from the previous forecast.

主要由於匯率的影響和截至目前的財年結果，我們上調了銷售額和營業收入預測：銷售額為 1.770 萬億日元（原文如此）[1.370 萬億日元]，增加了 900 億日元根據之前的預測；營業收入為 2650 億日元，比之前的預測增加了 350 億日元。

The streaming sales in this segment continues to grow steadily, with year-on-year increase of 34% recorded media, 78% on music publications. In Recorded Music, an average of 48 of our songs ranked at the top 100 songs in the Spotify's weekly global music ranking for the first half of the year, and which substantially [excluded] average of 36 of our songs over 12 months. And we're maintaining high share of hit charts by continuing generate hits from the contribution of the new artists and well-established artists, as Beyoncé, and with 6 new albums in the 6 years, Renaissance.

該細分市場的流媒體銷售繼續穩步增長，錄製媒體同比增長 34%，音樂出版物同比增長 78%。在 Recorded Music 中，我們平均有 48 首歌曲在 Spotify 上半年的每周全球音樂排名中排名前 100 名，這在很大程度上[排除了]我們 12 個月內平均有 36 首歌曲。我們通過繼續通過新藝術家和知名藝術家（如碧昂絲）的貢獻以及在 6 年內發行 6 張新專輯（文藝復興時期）的貢獻來保持高份額的熱門歌曲。

Now I will take a moment to review our strategic investment in this segment. And we're actively making a strategic investment to capture further growth in the music market, which is driven by AWAL, Som Livre, Alamo Records; and merchandising Ceremony of Roses; and podcast production, Somethin' Else and for the acquisitions.

現在我將花點時間回顧一下我們在這一領域的戰略投資。我們正在積極進行戰略投資，以抓住由 AWAL、Som Livre、Alamo Records 推動的音樂市場的進一步增長；和玫瑰銷售儀式；和播客製作，Somethin'Else 和收購。

In addition, we are carefully selecting which music catalogs of the industry-leading influential artists to acquire such as Bruce Springsteen. These acquisitions perform the important role of generating stable, long-term loyalty income, further expanding some revenue opportunities and increasing our presence in the music industries.

此外，我們正在仔細選擇要收購布魯斯·斯普林斯汀（Bruce Springsteen）等行業領先的有影響力的藝術家的哪些音樂目錄。這些收購在產生穩定、長期的忠誠度收入、進一步擴大一些收入機會和增加我們在音樂行業的影響力方面發揮著重要作用。

This strategic investment is steadily producing results. And we expect our operating income of this first fiscal year Sony Music Group, which is responsible for our Music business outside of Japan to reach the record high for the sixth consecutive years.

這項戰略投資正在穩步取得成果。我們預計，負責我們在日本以外的音樂業務的索尼音樂集團第一財年的營業收入將連續第六年創下歷史新高。

Next is the Pictures segment. Q2 sales increased 29% year-on-year to JPY 337.5 billion, primarily due to the impact of the foreign -- ForEx exchange rate. Operating income decreased JPY 4.2 billion year-on-year to JPY 27.6 billion, primarily due to the existence of the same period of the previous year of licensing revenue from digital streaming services.

接下來是圖片部分。第二季度銷售額同比增長 29% 至 3375 億日元，主要是由於外匯匯率的影響。營業收入同比減少 42 億日元至 276 億日元，主要是由於數字流媒體服務許可收入與上年同期存在。

Fiscal year FY '22 sales are expected to be JPY 1.450 trillion, an increase of JPY 70 billion from the previous forecast, primarily due to the impact of the ForEx exchange. We have upward revised operating income forecast to JPY 115 billion, an increased JPY 15 billion compared to the previous forecast.

22 財年的銷售額預計為 1.450 萬億日元，比之前的預測增加 700 億日元，這主要是由於外匯交易的影響。我們將營業收入預測上調至 1150 億日元，較之前的預測增加 150 億日元。

And in the Motion Pictures, as you can see, Sony released original works in different genres during the quarter, and all of them performed well. And those are Where the Crawdads Sing, a movie adaptation of a bestseller novel, which achieved a box office revenue that greatly exceeded our expectations. The movie was made by our 3000 Pictures studio and which was the partnership of HarperCollins and the major global publishing companies. We are seeing the success of our efforts discovering the excellent original works and made.

而在電影方面，大家可以看到，索尼在這個季度發布了不同類型的原創作品，而且都表現不錯。而這就是《大龍蝦的歌唱》，一部根據暢銷小說改編的電影，其票房收入大大超出了我們的預期。這部電影由我們的 3000 Pictures 工作室製作，是哈珀柯林斯和全球主要出版公司的合作夥伴。我們正在努力發現優秀的原創作品並取得成功。

Now I'd like to give you an update on the Crunchyroll and the animation business distribution service. The integration of the Crunchyroll and Funimation services is progressing smoothly. And the number of paying members are increasing nearly 10 million so far. The company is also actively involved in overseas theatrical distribution of Japanese animation. Dragon Ball Super: Super Hero, was released in August in the U.S. and secured the number one box office sales in the first week of the release. Also on August 4, we completed the acquisition of the Right Stuf, the U.S. commerce company and sells anime DVD, character goods, comics.

現在，我想給大家介紹一下 Crunchyroll 和動畫業務分發服務的最新情況。 Crunchyroll 和 Funimation 服務的整合進展順利。到目前為止，付費會員的數量正在增加近 1000 萬。該公司還積極參與日本動畫的海外院線發行。 《龍珠超：超級英雄》於 8 月在美國上映，並在上映的第一周就獲得了票房第一。同樣在 8 月 4 日，我們完成了對美國商業公司 Right Stuf 的收購，並銷售動漫 DVD、角色商品、漫畫。

And the next, I'd like to explain our recent acquisitions of Pixomondo. And having 7 facilities in North America and Europe, Pixomondo offers end-to-end services, from visual production toward visual effects. It is a pioneer in the field having won numerous Academy and Emmy awards for the project it has worked on. It has superb technological capabilities and a rich history of success. And it is also known for using the Unreal Engine game engine provided by Epic Games, which we invest to make its visual effects. In the virtual production market, which is expected to grow significantly in the future, we will aim to combine Sony's hardware and software technologies and our video production know-how with Pixomondo's technology capabilities to establish a leading position.

接下來，我想解釋一下我們最近對 Pixomondo 的收購。 Pixomondo 在北美和歐洲擁有 7 個設施，提供從視覺製作到視覺效果的端到端服務。它是該領域的先驅，因其所從事的項目而獲得了無數奧斯卡和艾美獎。它擁有精湛的技術能力和豐富的成功歷史。它還以使用 Epic Games 提供的 Unreal Engine 遊戲引擎而聞名，我們投資了它來製作它的視覺效果。在未來有望大幅增長的虛擬製作市場中，我們的目標是將索尼的硬件和軟件技術以及我們的視頻製作技術與 Pixomondo 的技術能力相結合，以確立領先地位。

Lastly, I will explain the progress toward the merger of Sony Pictures Networks India and Zee Entertainment Enterprises. Following the approval of Competition Commission of India on October 4, Zee's shareholders approved the merger of the Extraordinary Shareholders Meeting held on October 14. The merger process is progressing steadily, and we currently expect the transaction to close by the end of first half of the next year.

最後，我將解釋 Sony Pictures Networks India 和 Zee Entertainment Enterprises 合併的進展情況。繼 10 月 4 日印度競爭委員會批准後，Zee 的股東批准了 10 月 14 日舉行的臨時股東大會的合併。合併進程正在穩步推進，我們目前預計交易將在上半年結束前完成。明年。

Next is the ET&S segment. Q2 sales increased a significant 16% year-on-year to JPY 677 billion, mainly due to the impact of foreign exchange rates. Operating income increased JPY 5.1 billion year-on-year to JPY 77.8 billion, primarily due to the positive impact of foreign exchange rates and the impact of an increase in sales of digital cameras.

接下來是ET&S部分。第二季度銷售額同比大幅增長 16% 至 6,770 億日元，主要是受匯率影響。營業收入同比增長 51 億日元至 778 億日元，主要是受到匯率的積極影響以及數碼相機銷量增加的影響。

Although we have incorporated the additional risk of market slowdown in the second half of the fiscal year, our FY '22 sales forecast is JPY 2.510 trillion, an increase of JPY 60 billion. There is no change from the previous forecast for operating income.

儘管我們在本財年下半年考慮了市場放緩的額外風險，但我們對 22 財年的銷售額預測為 2.510 萬億日元，增加了 600 億日元。與之前的營業收入預測相比沒有變化。

In the current quarter, we are able to quickly recover from the supply chain turmoil caused by the lockdown in Shanghai in order to restore a stable supply. This enabled us to recover sales and profit, primarily in the digital camera. For TVs, the deterioration of the business environment is becoming apparent such as the increasing downward pressure on price due to an oversupply of panels and sluggish demand, especially in Europe. We anticipate that the environment will become even more severe going into next fiscal year due to the global economic slowdown.

在本季度，我們能夠迅速從上海封鎖造成的供應鏈動盪中恢復過來，以恢復穩定的供應。這使我們能夠恢復銷售和利潤，主要是在數碼相機方面。對於電視而言，尤其是在歐洲，面板供過於求和需求低迷導致價格下行壓力加大等商業環境惡化的趨勢越來越明顯。我們預計，由於全球經濟放緩，進入下一財年的環境將變得更加嚴峻。

We are going to minimize the risk. So at the end of September, daily turnover inventory in every product category has decreased versus the end of June, and we are planning to close attention to demand trend as we reduce the inventory even further.

我們將把風險降到最低。因此，在 9 月底，每個產品類別的日周轉庫存比 6 月底有所減少，我們計劃在進一步減少庫存的同時密切關注需求趨勢。

In addition, we are accelerating our efforts to strengthen our business structure from next fiscal year onwards and sales operations, strengthening the cooperation between ET&S, I&SS and G&NS in procurement and logistics and further optimization on the breakeven point according to the business environment. In addition, new business areas, which have been positioned as our growth access such as sports, life science, network services and virtual production are expected to increase their sales by approximately 20%.

此外，從下一財年起，我們將加快加強業務結構和銷售業務，加強ET&S、I&SS和G&NS在採購和物流方面的合作，並根據商業環境進一步優化盈虧平衡點。此外，體育、生命科學、網絡服務和虛擬製作等被定位為我們增長通道的新業務領域的銷售額預計將增長約20%。

Next is the I&SS segment. Q2 sales increased a significant 43% year-on-year to JPY 398.4 billion, mainly due to the impact of ForEx and higher sales of image sensors for mobile devices. Operating income was JPY 74 billion, a significant increase of JPY 24.3 billion year-on-year, mainly due to the positive impact of ForEx and the benefit from the increase in sales.

接下來是 I&SS 部分。第二季度銷售額同比大幅增長 43% 至 3984 億日元，主要是由於外匯交易的影響以及移動設備圖像傳感器的銷售額增加。營業收入為 740 億日元，同比大幅增加 243 億日元，主要得益於 ForEx 的積極影響和銷售額增長的受益。

Our sales forecast remains unchanged. We have upwardly revised our operating income forecast by JPY 20 billion from the previous forecast to JPY 220 billion, primarily due to the positive impact of foreign exchange rates. The slowdown in the smartphone market, particularly in China, did not improve during Q2, but the impact was generally within the scope assumed in our previous forecast. However, for the high-end smartphone cameras are progressing as expected, with larger die size, higher resolution, higher performance, benefiting from this.

我們的銷售預測保持不變。我們將營業收入預測從之前的預測上調了 200 億日元至 2200 億日元，主要是由於匯率的積極影響。智能手機市場的放緩，尤其是中國的放緩，在第二季度沒有改善，但影響總體在我們之前預測的假設範圍內。然而，對於高端智能手機的攝像頭正在按預期發展，更大的裸片尺寸、更高的分辨率、更高的性能，受益於此。

Sales reached a historic high for the segment in the second quarter. Due to the improved supply of logic semiconductors, it has become possible to increase the production of large die size and higher-resolution sensors, which means that we can proactively introduce high value-added sensors. We expect image sensor shipments in the third quarter ending December 31 to remain at a higher level, but we also believe that we need to consider the risk of further economic slowdown in the end user product market. Therefore, in the current forecast, we have incorporated additional risk into ourselves, and we have made a conservative forecast.

第二季度該細分市場的銷售額達到歷史最高水平。由於邏輯半導體供應的改善，可以增加大芯片尺寸和更高分辨率傳感器的產量，這意味著我們可以主動引入高附加值的傳感器。我們預計截至 12 月 31 日的第三季度圖像傳感器出貨量將保持在較高水平，但我們也認為需要考慮最終用戶產品市場經濟進一步放緩的風險。因此，在目前的預測中，我們將額外的風險納入了自己，我們做出了保守的預測。

Regarding inventories, we are continuing to utilize existing production capacity and manage strategic inventories or optimize the timing of future capital investment. Inventory at the end of the quarter was up about 33% year-on-year, which we believe is broadly in line with our sales growth.

在庫存方面，我們將繼續利用現有產能並管理戰略庫存或優化未來資本投資的時機。本季度末的庫存同比增長約 33%，我們認為這與我們的銷售增長基本一致。

From the next fiscal year onwards, we expect the trend of increasing adoption of large die size and higher resolution sensors in the high-end smartphones. At the same time, the automotive business is also steadily expanding, and we have great expectations for the business to grow.

從下一個財年開始，我們預計高端智能手機將越來越多地採用大芯片尺寸和更高分辨率的傳感器。同時，汽車業務也在穩步擴張，我們對業務的增長抱有很大的期望。

Last, the Financial Services segment. FY '22 Q2 Financial Services revenue decreased 17% year-on-year to JPY 304.5 billion, mainly due to the deterioration in net gains and losses in investment in the separate accounts at Sony Life Insurance. Operating income at Sony Life increased a significant 11.6% year-on-year to JPY 54.6 billion, primarily due to the impact of the recovery of the funds that were subject to an unauthorized withdrawal.

最後是金融服務部門。 22 財年第二季度金融服務收入同比下降 17% 至 3045 億日元，主要是由於索尼人壽保險獨立賬戶投資的淨損益惡化。索尼人壽的營業收入同比大幅增長 11.6% 至 546 億日元，這主要是由於未經授權提取的資金收回的影響。

The FY '22 Financial Services revenue forecast is JPY 1.310 trillion, a decrease of JPY 130 billion from the previous forecast. And there is no change from the previous forecast for the operating income.

22 財年金融服務收入預測為 1.310 萬億日元，比之前的預測減少 1300 億日元。與之前的營業收入預測相比沒有變化。

To summarize the earnings announcement, our biggest regret is that we have made a significant downward revision to the operating income forecast of the G&NS segment for the second consecutive quarter in a row. As CFO, I take this very seriously, and I've been improving the accuracy of our earnings forecast.

總結收益公告，我們最大的遺憾是我們連續第二個季度大幅下調了 G&NS 部門的營業收入預測。作為首席財務官，我非常重視這一點，我一直在提高我們盈利預測的準確性。

On the other hand, when looking at the entire group in the first half of the fiscal year, we think that each business has responded swiftly to major changes in the business environment. Furthermore, the results of the investment we have made in the Music and I&SS segments have made up for the weakness of G&NS segment. And the cost structure of each business segment has balanced out the significant fluctuation in foreign exchange rates, and therefore, we are able to strengthen our resilience.

另一方面，從本財年上半年的整個集團來看，我們認為每個業務都迅速應對了經營環境的重大變化。此外，我們在音樂和 I&SS 領域的投資成果彌補了 G&NS 領域的弱點。並且各業務板塊的成本結構已經抵消了匯率的大幅波動，因此我們能夠增強我們的應變能力。

We anticipate that the business environment will become even more severe from now into the next fiscal year, and each business is taking steps to prepare for this. In addition of facing these issues in the short term, we will also work to implement measures to grow over the long term.

我們預計，從現在到下一個財政年度，經營環境將變得更加嚴峻，各企業都在為此做好準備。除了在短期內面臨這些問題外，我們還將努力實施措施以實現長期增長。

This concludes my remarks. Thank you.

我的發言到此結束。謝謝你。

That was the presentation by Totoki. From 4:25, we will start to take questions from the media, and from 4:50, we'll start the Q&A for investors and analysts. For each segment, we are planning for 20 minutes of Q&A. (Operator Instructions)

那是Totoki的介紹。 4點25分開始接受媒體提問，4點50分開始投資者和分析師問答環節。對於每個部分，我們計劃進行 20 分鐘的問答。 （操作員說明）

(Break)

（休息）

Thank you for waiting. We'd now like to start the Q&A by the media. The presenter will be Hiroki Totoki, Executive Deputy President; and Naomi Matsuoka, Senior Vice President in charge of Corporate Planning and Control, Support for Finance Business and Entertainment Area; and Sadahiko Hayakawa, Senior Vice President in charge of Finance and IR.

謝謝你的等待。我們現在想開始媒體的問答。演講者將是常務副總裁 Hiroki Totoki； Naomi Matsuoka，負責企業計劃和控制、支持金融業務和娛樂領域的高級副總裁；以及負責財務和 IR 的高級副總裁早川貞彥。

We'd now like to begin the Q&A. (Operator Instructions) The first question is from Nikkei, Mr. Tsutsumi, please.

我們現在想開始問答。 （操作員說明）第一個問題來自日經，請 Tsutsumi 先生。

This is Tsutsumi from Nikkei. Can you hear me?

這是日經的Tsutsumi。你能聽到我嗎？

Yes, we can hear you.

是的，我們可以聽到你的聲音。

About game and semiconductor. First, about the game segment. About the sales forecast, can you give the breakdown, software, hardware? And can you give me the breakdown -- specifics of your sales forecast? I think major titles, I think, you have a very good lineup. But including the year-end sales for the third quarter, the GameSoft sales compared to the previous year, how much of a level are you aiming towards year-on-year? And there is a slowdown of the economy, et cetera, these external factors. So including those factors, can you answer? And PS5, will the price increase have an impact on the demand? That's my first question.

關於遊戲和半導體。首先，關於遊戲部分。關於銷售預測，你能給出細分，軟件，硬件嗎？你能告訴我你的銷售預測的細節嗎？我認為主要的標題，我認為，你有一個非常好的陣容。但是包括第三季度的年終銷售額，GameSoft的銷售額與去年相比，你的目標是同比增長多少？還有經濟放緩，等等，這些外部因素。那麼包括這些因素，你能回答嗎？而PS5，漲價會對需求造成影響嗎？這是我的第一個問題。

The second question about semiconductors. Earlier you said that China and the high end, especially low end decline is within your expectation. But going forward, I think there are some additional risks that you have factored in. But about the high end, there is a possibility that the sales would drop. Did you factor in this possibility? And especially North America customers, high end forecast, can you explain whether the high-end models are doing well now? And we have a lot of news about the problem at the production factory, et cetera. So can you explain how much of these factors have been included in your forecast? And what is the outlook?

第二個關於半導體的問題。之前你說中國和高端，尤其是低端的下滑在你的預期之內。但展望未來，我認為你已經考慮了一些額外的風險。但關於高端，銷售可能會下降。你考慮過這種可能性嗎？尤其是北美客戶，高端預測，你能解釋一下高端車型現在做得好嗎？我們有很多關於生產工廠等問題的消息。那麼您能解釋一下您的預測中包含了多少這些因素嗎？前景如何？

Thank you for the question. The first about Game & Network Services question about the sales forecast and the breakdown of the forecast. As for specific numbers, I cannot disclose them here. But as a trend, I will say, software -- and first-party software, I think -- so I think it will be high and thanks to God of War. And about third party, the overall game trend will impact. But I think there will be less year-on-year. So we'll see a decline year-on-year slightly.

感謝你的提問。第一個關於遊戲和網絡服務的關於銷售預測和預測細分的問題。至於具體數字，我不能在這裡透露。但作為一種趨勢，我會說，軟件——我認為是第一方軟件——所以我認為它會很高，這要歸功於《戰神》。而關於第三方，整體的遊戲趨勢會受到影響。但我認為同比會減少。因此，我們將看到同比略有下降。

And about the hardware, I cannot give a specific unit numbers. But as I mentioned in my speech, the second quarter production, it's reached 6.5 million already. And we want to use this to supply for the year-end sales. I think there's a lot of expectation here.

關於硬件，我無法給出具體的單元號。但正如我在演講中提到的，第二季度的產量已經達到了 650 萬片。我們想用它來供應年終銷售。我認為這裡有很多期望。

And PS5 price increase impact. Well, so far, due to the price increase, we have not seen any dampening of the demand, but we have to monitor what will happen in the market going forward.

以及PS5漲價的影響。好吧，到目前為止，由於價格上漲，我們還沒有看到需求受到任何抑制，但我們必須監控未來市場會發生什麼。

And I&SS. Well, the China mid- and low-end models, the slowdown declined. This is something that we have already factored in. About high end, I think that is doing relatively well. But to a certain extent, it will, along with the economic slowdown, experience a slight decline. So this risk has been factored in. Including that in our forecast, we have come up with these numbers. So please take it to be that way.

和 I&SS。那麼，中國中低端車型，增速放緩。這是我們已經考慮到的。關於高端，我認為它做得比較好。但在一定程度上，隨著經濟放緩，會出現小幅下滑。因此，這種風險已被考慮在內。包括在我們的預測中，我們已經得出了這些數字。所以請就這樣吧。

And about customer information, we cannot disclose any of such information. Thank you.

關於客戶信息，我們不能透露任何此類信息。謝謝你。

We'd like to move into the next question. Kyodo News Agency [Mr. Yamasaki].

我們想進入下一個問題。日本共同社[Mr.山崎]。

My name is [Yamasaki] of Kyodo News Services, and I think I have 2 questions. First one is for the -- your performance forecast. Due to yen's depreciation, what extent of upward the effect do you expect because of the yen's depreciation? And in addition to that, there are so many areas that might be difficult for you to answer, but that's for upward, the revision -- what are the main factors for the upward revision? Is it possible for you to name a few?

我的名字是共同社的[山崎]，我想我有兩個問題。第一個是針對您的績效預測的。由於日元貶值，您預計日元貶值會帶來多大程度的上行影響？除此之外，還有很多地方你可能很難回答，但那是向上的，修正——向上修正的主要因素是什麼？你能列舉幾個嗎？

Second is for semiconductor trend. And October, you talked about U.S., the more stringent restrictions on to a China export. So what is the impact on to your business and the U.S. restrictions on China?

二是針對半導體趨勢。十月，你談到了美國，對中國出口的限制更加嚴格。那麼對您的業務和美國對中國的限制有什麼影響？

Thank you for your questions. First is for the business performance outlook and because of foreign exchange and some potential impact on to the revenue, and probably Hayakawa-san will answer the questions.

謝謝你的提問。首先是關於業務業績前景，以及由於外彙和對收入的一些潛在影響，早川先生可能會回答問題。

Thank you for your questions. And as for -- your question is concerning of foreign exchange impact on to our future forecast. And dollar, euro, if there is any difference by JPY 1, we have already indicated some extent. But other than dollar and euro, we have some other currency. And we have the foreign exchange hedging. And there might be some difference between the sensitivity to ForEx fluctuations and especially in the gaming industries. And we have the -- based on the dollar cost and that's -- we have to see a negative impact. But that's the year-on-year basis for the future forecast. And we have a downward focus, and almost 50% are the impact by the ForEx. And I&SS, we have the positive effect because of the ForEx rate fluctuation. And we have the positive profit.

謝謝你的提問。至於——你的問題是關於外匯對我們未來預測的影響。而美元、歐元，如果相差1日元，我們已經在一定程度上表示出來了。但除了美元和歐元，我們還有其他一些貨幣。我們有外匯對沖。對外匯波動的敏感性可能存在一些差異，尤其是在遊戲行業。我們有 - 基於美元成本 - 我們必須看到負面影響。但這是未來預測的同比基礎。而且我們有一個向下的關注點，幾乎 50% 是受到外匯市場的影響。而 I&SS，由於外匯匯率的波動，我們產生了積極的影響。我們有正利潤。

And as for the Game & Network Services and in the final consolidated, the settlement, and we have the limited impact. That's my opinion.

而對於遊戲和網絡服務以及在最終合併、結算方面，我們的影響有限。這是我的意見。

And as for some other few, the main factors are for upward revision. One is the contribution by the Music segment and the growth in the streaming business and due to ForEx impact. Those are the main drivers for upward revision. And I&SS, another factors. And of course, we have the impact by the foreign exchange rate, but we have the quite steady sales in the Q2 and a record high revenue and sales, and that's why we came up with the upward revision for the forecast.

至於其他一些，主要因素是向上修正。一是音樂部門的貢獻和流媒體業務的增長以及外匯影響。這些是向上修正的主要驅動力。和 I&SS，另一個因素。當然，我們受到外匯匯率的影響，但我們在第二季度的銷售額相當穩定，收入和銷售額創歷史新高，這就是我們上調預測的原因。

And I&SS segment and the U.S. export restriction onto the Chinese market and what extent of the impact we have to foresee, that's announced back in the 7th of October. We have witnessed a minimal effect impact. We have already embedded for our future forecast. But the tension might be intensified between U.S. and China, so we would like to carefully monitor the situation, what's going on.

I&SS 部門和美國對中國市場的出口限制以及我們必須預見的影響程度，早在 10 月 7 日就已宣布。我們目睹了最小的影響。我們已經嵌入了我們未來的預測。但中美之間的緊張局勢可能會加劇，因此我們希望仔細監控局勢，了解正在發生的事情。

So we would now like to accommodate next question, please. From NHK, Mr. Shimai, please.

所以我們現在想解決下一個問題，拜託。請來自 NHK 的 Shimai 先生。

This is Shimai from NHK. I hope you can hear my voice. So I have 2 questions. So first is about yen's depreciation and looking at the business, there is a positive impact of weaker yen. However, please, for example, cost increase, there could be a negative impact. So what kind of impact is there? And also in comparison to competitors, for example, due to the weak yen, so they are going to review once again their production capability. And for Sony, are you going to review once again your production capability?

這是NHK的Shimai。我希望你能聽到我的聲音。所以我有2個問題。首先是關於日元貶值，從業務來看，日元貶值有積極影響。但是，請，例如，成本增加，可能會產生負面影響。那麼有什麼樣的影響呢？並且與競爭對手相比，例如，由於日元疲軟，因此他們將再次審查其生產能力。而對於索尼，你會再次審視你的生產能力嗎？

Another question is about Sony relationship to the semiconductor. So for the PS5. So there was 6.5 million units. And therefore, not only the PlayStation, however, for the production of the semiconductor. So do you think this kind of impact of the semiconductor production have been already weeded out?

另一個問題是關於索尼與半導體的關係。所以對於PS5。所以有650萬個單位。因此，不僅是 PlayStation，而是用於生產半導體。那麼您認為半導體生產的這種影響已經被淘汰了嗎？

So talking about the exchange rate. So because positive, negative and also the segment, as Mr. Hayakawa had mentioned, there are both impacts. So for the time being, so looking at the sensitivity for the weaker yen, so there will be a positive of USD 1 billion. For the euro, it's 7 billion impact. So for the Game & Network Services, ET&S and for the I&SS. So this applies to all 3 segments.

所以說匯率。因此，正如早川先生所提到的，因為正面、負面以及細分市場，兩者都有影響。因此，就目前而言，考慮日元疲軟的敏感性，因此將有 10 億美元的積極影響。對歐元來說，影響是 70 億。所以對於遊戲和網絡服務、ET&S 和 I&SS。因此，這適用於所有 3 個細分市場。

So talking about the projection, so because due to the exchange rate, we don't decide based on the exchange rate. And well, because looking at the condition with our supply chain and also the geopolitical risks, [therefore], we need to take in consideration those environments. So however, it is important to have a flexibility. And for example, I mentioned about the automation and also the DX. So I have included in my speech. Therefore, well, because it's going to have a standardization in the production. And therefore, if there is a standardization, we are able to produce everywhere. Therefore, we are going to take proactive action for that.

所以說預測，所以因為匯率的關係，我們不是根據匯率來決定的。好吧，因為考慮到我們的供應鏈狀況以及地緣政治風險，[因此]，我們需要考慮這些環境。因此，重要的是要有靈活性。例如，我提到了自動化和 DX。所以我在我的演講中加入了。因此，好吧，因為它將在生產中實現標準化。因此，如果有標準化，我們就可以在任何地方生產。因此，我們將為此採取積極行動。

Talking about the G&NS for the semiconductor and the parts and also looking at the logistics, there aren't too much pressure on that. And therefore, in the second quarter, 6.5 million units, we are able to produce that amount, and sales of the PS5 have been according to the plan. And therefore, for the production, we are able to have a more speedy production, and therefore, 18 million target can be achieved, and therefore, we are going to have a positive impact on that on units sold.

談到半導體和零件的 G&NS 以及物流，這方面並沒有太大的壓力。因此，在第二季度，我們能夠生產 650 萬台，並且 PS5 的銷售一直在按計劃進行。因此，對於生產，我們能夠更快地生產，因此可以實現 1800 萬個目標，因此，我們將對銷售量產生積極影響。

We'll proceed to the next question. Toyo Keizai, [Sasaki-san], please.

我們將繼續下一個問題。東洋經濟，[佐佐木先生]，請。

Can you hear me?

你能聽到我嗎？

Yes.

是的。

[Sasaki] from Toyo Keizai. I have 2 questions. First, about PS5, the outlook of next fiscal year. Well, you said about the logistics and the component supply recovering. But next fiscal year, will you be able to produce and meet all the demands? When about will you be able to surpass the demand?

[佐佐木] 來自東洋經濟。我有 2 個問題。首先，關於PS5，下一財年的展望。好吧，你說物流和零部件供應正在恢復。但是下一個財政年度，你能生產並滿足所有需求嗎？你什麼時候能夠超越需求？

And second, about Music. Earlier in the explanation, you said that the virtual media platform accounts for about 10%. But this ratio, is it growing? If so, what are the reasons for the growth? And anime within the segment profit, how much does anime account for?

第二，關於音樂。前面你說虛擬媒體平台佔10%左右。但是這個比例，是在增長嗎？如果有，增長的原因是什麼？而動漫分部利潤，動漫佔了多少？

Thank you. About your first question, PS5 and the outlook for next fiscal year. You're asking about the unit sales, I believe. At the presentation we gave in May, we said PS5 in the fourth year -- 2023 after PS5 was introduced. At this timing, PS5 would have surpassed PS4. And so this is the challenge that we have set out for ourselves. So if we could manage 18 million this year, so we next year, do some 23 million-plus then. And next year, we will be able to surpass PS4 next year. So this will be the target for the time being.

謝謝你。關於你的第一個問題，PS5 和下一財年的展望。你問的是單位銷售額，我相信。在我們 5 月份的演講中，我們說 PS5 在第四年——PS5 推出後的 2023 年。在這個時候，PS5 已經超過了 PS4。這就是我們為自己設定的挑戰。因此，如果我們今年可以管理 1800 萬，那麼我們明年將達到 2300 萬以上。而明年，我們明年就能超越PS4。所以這將是暫時的目標。

And about Music. Well, the virtual -- visual platform is about 10%. But FGO is the largest part. It's quite some time since it launched. And in the mid- to long term, there will be a decline. But like Lasengle acquisition, there is the vertical acquisition. So it will -- it has exceeded last year. So we want people to enjoy as long as possible. We want to make it into such an IP.

關於音樂。嗯，虛擬的——視覺平台大約是10%。但FGO是最大的部分。自推出以來已經有一段時間了。而從中長期來看，還會有下降。但像Lasengle收購一樣，還有垂直收購。所以它會 - 它已經超過了去年。所以我們希望人們盡可能長時間地享受。我們想把它做成這樣的IP。

Now as the ratio goes down, for example, the Demon Slayer anime and the new IPs to follow, we want to develop them so that we can grow this business. As for anime, the profitability, I think it's very good. That's all. Thank you.

現在隨著比例下降，例如惡魔殺手動漫和後續的新 IP，我們希望開發它們，以便我們能夠發展這項業務。至於動漫，盈利能力，我認為非常好。就這樣。謝謝你。

Time is running out, and we'd like to take the one final question. (Operator Instructions) There seems to be no questions, and I would like to adjourn the Q&A session for the media attendants.

時間不多了，我們想回答最後一個問題。 （操作員說明）似乎沒有問題，我想暫停媒體服務員的問答環節。

And as for investors and analysts, the Q&A session will start at the quarter to 5. 16:45, we are going to resume the session for investors and analysts. Thank you.

而對於投資者和分析師，問答環節將從本季度開始至5。16:45，我們將恢復投資者和分析師的會議。謝謝你。

(Break)

（休息）

Thank you for waiting. And we'd like to start the Q&A session for investors and analysts. And my name is [Shinichi] of our Financial/IR Group. I'm going to take the chair of this session.

謝謝你的等待。我們想開始投資者和分析師的問答環節。我的名字是我們金融/投資者關係組的[Shinichi]。我將擔任本屆會議的主席。

And as for the media session, we have 3 representatives on the podium to answer the questions. (Operator Instructions)

至於媒體專場，我們有3位代表在講台上回答問題。 （操作員說明）

So we'd like to start Q&A session. (Operator Instructions) And from Morgan Stanley MUFG, Ono-san.

所以我們想開始問答環節。 （操作員說明）來自摩根士丹利 MUFG，Ono-san。

My name is Ono of Morgan Stanley. Do you hear me? I think I have 2 questions on ET&S and the game and respectively, 1 question.

我是摩根士丹利的小野。你聽到我了嗎？我想我有 2 個關於 ET&S 和遊戲的問題，分別是 1 個問題。

On ET&S, and as for cameras, the sales and the business has been performing quite well, not only for Sony but to the market as a whole seems to be quite promising. But as for the ET&S overall, the operating profit now JPY 180 billion. And that might be because of ForEx impact and the camera business with a higher margin. And I feel a bit [rather] awkward for those figures.

在 ET&S 以及相機方面，銷售和業務一直表現良好，不僅對索尼而且對整個市場來說似乎都非常有希望。但就 ET&S 整體而言，目前的營業利潤為 1800 億日元。這可能是因為外匯影響和利潤率更高的相機業務。我對這些數字感到有點[相當]尷尬。

As for smartphones, and the new Xperias 1 IV are now on the release. And many of the communication carriers started do a discount of the sales. So what is your take for that move? And I'd like to know why you didn't change guidance and mainly because of that.

至於智能手機，新的 Xperias 1 IV 現已發布。並且很多通訊運營商開始打折銷售。那麼你對這一舉動有何看法？我想知道你為什麼不改變指導，主要是因為這個。

And the second is, and we have the 100 -- 18 million production is now on the scene. But as for MAU figures has been slowing down gradually. And you are going to have the first-party release for the next period. And do you expect some of the recovery in the Q3 period because of that?

第二個是，我們現在有 100 到 1800 萬的產量。但至於 MAU 數字一直在逐漸放緩。您將在下一個時期發布第一方版本。您是否因此預計第三季度會出現一些復甦？

Thank you for your question. And as for ET&S and as for camera business, in the first half, our business has been quite excellent and almost a record high. But as for pent-up demand since the last period because of a supply shortage, that might be the contributing factors. And the second half concerns for economic slowdown should be incorporated. So we have some [implications] that the camera business is now gradually going to slow down. So we should be more conservative. So that is why we came up with that guidance.

謝謝你的問題。而對於ET&S和相機業務，上半年，我們的業務非常出色，幾乎創歷史新高。但至於上一時期以來由於供應短缺而被壓抑的需求，這可能是促成因素。下半年對經濟放緩的擔憂應該被納入考慮。所以我們有一些[暗示]相機業務現在正在逐漸放緩。所以我們應該更加保守。因此，這就是我們提出該指南的原因。

And as for TV. As you know quite well, and the panel supply and the excess and DSPs are declining -- declines. And we do not follow too much because we like to pursue the interest as much as you can make on the profit, as much as you can make in the first half. And we will be more selective in the second half to secure the profit. And we will be ready for the recovery of the economic cycles of the next fiscal year, and we will be -- we will get ready for that notably. That's our policies.

至於電視。如您所知，面板供應、過剩和 DSP 正在下降——下降。而且我們不會追得太多，因為我們喜歡盡可能多地追求利潤，盡可能多地追求上半年的利潤。我們將在下半年更有選擇性地確保利潤。我們將為下一財年經濟周期的複蘇做好準備，我們將——我們將為此做好準備。這就是我們的政策。

And the Game & Network Services and the production itself has been quite well. But according to the previous period, and we have the decline of the MAU and the other indices. And the second quarter, and more people are now going outdoors. And we have still -- we have yet to get out of the negative cycles.

遊戲和網絡服務以及製作本身也做得很好。但是根據前期，我們有MAU和其他指數的下降。而第二季度，現在有更多的人去戶外了。而且我們仍然 - 我們還沒有擺脫負面循環。

And PS4s and third-party software sales has been rather sluggish. And the catalog title and historical titles has been declining. And against that, PS5 engagement is quite high. So the Q3, we expect some recovery. And we have the strong titles from the first party, and we have some seasonal effect. And the Q3, we can see some of the recovery from the downturn trend. That's our expectations.

而 PS4 和第三方軟件的銷售一直相當低迷。並且目錄標題和歷史標題一直在下降。與此相反，PS5 的參與度相當高。所以第三季度，我們預計會有一些復甦。我們有來自第一方的強大頭銜，我們有一些季節性影響。而第三季度，我們可以看到一些從低迷趨勢中復甦的跡象。這是我們的期望。

Thank you very much, Mr. Ono. So we'd like to move onto next question from JPMorgan Securities, Mr. Ayada, please.

非常感謝小野先生。因此，請 Ayada 先生回答摩根大通證券的下一個問題。

From JPMorgan, Ayada. I have 2 questions. So I have 2 questions for the game. The first question is, as you have mentioned about the third-party sales, there have been a deterioration. And therefore, I would like you to explain in detail, well, because there hadn't been good kind of title sales. So thinking about the new titles. And talking about the current situation, there had been a hurdle in comparison to the last year. However, looking at the other platforms, including the consoles and PCs, the users have been taken by other players. So do you have any perspective on this point?

來自摩根大通，綾田。我有 2 個問題。所以我有2個遊戲問題。第一個問題是，正如你提到的關於第三方銷售的情況，出現了惡化。因此，我希望您詳細解釋一下，因為沒有很好的標題銷售。所以想著新的標題。而且說現在的情況，和去年相比，還是有障礙的。然而，看看其他平台，包括遊戲機和PC，用戶已經被其他玩家帶走了。那麼您對這一點有什麼看法嗎？

And just one question is about -- talking about the PS Plus members, there have been a decline. And for this quarter, there have been a huge decline. So in order to recover the membership, how -- which area are you going to focus for the third quarter? Including the first party, you're going to release the large titles. Do you expect more members to come back or -- so talking about the -- and [that state] of PS4 and 5, and therefore, you are going to focus on the hardware by leading the PS5, you're going to increase the membership. So I think you're going to take both ways. So if there is any perspective on these points.

只有一個問題是關於 - 談到 PS Plus 成員，人數有所下降。而本季度，出現了巨大的下降。因此，為了恢復會員資格，您將如何在第三季度關注哪個領域？包括第一方在內，您將發布大型標題。你是否期望更多的成員回來，或者——所以談到 PS4 和 5 的——和[那個狀態]，因此，你將通過領導 PS5 來專注於硬件，你將增加會員資格。所以我認為你會採取兩種方式。因此，如果對這些觀點有任何看法。

Thank you very much for the question. First -- for the first question, so there had been a weakness in the third-party software, well, because our initial forecast was too strong. And therefore, that is a point that we need to reflect for the second quarter. So there had been more expense. For example, I think the users are going out from home, and therefore, that had given up an impact to our sales.

非常感謝您的提問。首先——對於第一個問題，第三方軟件存在弱點，好吧，因為我們最初的預測太強了。因此，這是我們需要在第二季度反思的一點。因此，費用增加了。例如，我認為用戶正在離家，因此，這已經放棄了對我們銷售的影響。

In addition talking about the new titles, the (inaudible) title, for example, the third-party AAA titles, we are able -- we are going to maintain our strength. So for example, the Call of Duty, we are having a good release. And therefore, for the third quarter, we do have a very high expectation.

除了談論新標題，（聽不清）標題，例如，第三方 AAA 標題，我們能夠 - 我們將保持我們的實力。例如，使命召喚，我們正在發布一個很好的版本。因此，對於第三季度，我們確實有很高的期望。

And talking about the membership, and there have been a decline for the PS Plus. And there have been a decline in number of members with the PS Plus. However, in the second quarter, we had renewed our services. And also, there hadn't been a great momentum as a whole, and also, we didn't make aggressive promotion during the second quarter. And therefore, in the future, we are going to have more penetration on PS5, and we are going to have a very good titles. And in addition, we are able to make a good -- better promotion, and we think we are able to recover.

談到會員資格，PS Plus 的數量有所下降。 PS Plus 的會員數量也有所下降。但是，在第二季度，我們更新了服務。而且，整體上沒有很大的勢頭，而且，我們在第二季度也沒有進行積極的推廣。因此，在未來，我們將在 PS5 上進行更多的滲透，我們將擁有一個非常好的遊戲。此外，我們能夠進行更好的推廣，我們認為我們能夠恢復。

Thank you very much. And next question, UBS Securities, Mr. Yasui, please.

非常感謝。下一個問題是瑞銀證券的安井先生。

Two questions. First, about Music. Looking at the market, and the streaming market is very strong. And you have a lot of hits. And I think the top 10 hits are generating a lot of profit. So I think you are in a very good position. But if there is a negative about your business, I think you might be scared that things are going too well. But is there any possibility of a risk in Music?

兩個問題。首先，關於音樂。放眼市場，流媒體市場非常強勁。而且你有很多點擊率。而且我認為排名前 10 的熱門歌曲正在產生大量利潤。所以我認為你處於一個非常好的位置。但是，如果對您的業務有負面影響，我認為您可能會害怕事情進展得太順利。但是音樂有風險嗎？

The second, about semiconductors, I&SS. You say profitability is 20%. There was -- when you had 30% -- when you had a Chinese major client. But I'm looking at the utility rate -- utilization rate. I was hoping that it would be higher, including the foreign exchange hedge. Do you have the power to exceed 20%, please?

第二，關於半導體，I&SS。你說利潤率是20%。曾經——當你有 30% 的時候——當你有一個中國大客戶時。但我在看效用率——利用率。我希望它會更高，包括外匯對沖。請問你有超過20%的能力嗎？

Thank you very much. About Music, thanks to you and everyone. I think we are doing extremely well. Streaming is very successful. And well, we really don't have that much of a concern, but if there is going to be a change, that would be emerging service. TikTok, these new platforms, how we can try to compete against these newcomers. But meanwhile, different types of music, I think, can be delivered in different channels. So it could be a risk, and also it could be an opportunity. But what's important is that music -- it's very easy to provide music through new technology. And due to technology disruption, it could occur easily. The [industry] tells us this is the case. So we have to capture the trend in the world as soon as possible and quickly and swiftly respond. That's the first answer.

非常感謝。關於音樂，謝謝你和大家。我認為我們做得非常好。流媒體非常成功。好吧，我們真的沒有那麼擔心，但如果要發生變化，那將是新興服務。 TikTok，這些新平台，我們如何嘗試與這些新人競爭。但與此同時，我認為不同類型的音樂可以通過不同的渠道傳遞。所以這可能是一個風險，也可能是一個機會。但重要的是音樂——通過新技術提供音樂很容易。而且由於技術中斷，它很容易發生。 [行業] 告訴我們情況就是這樣。所以我們要第一時間捕捉世界的趨勢，迅速迅速地做出反應。這是第一個答案。

And about I&SS and the profit ratio, you say that it should be higher or could be higher. Well, I think that we do have the capability to increase profitability. But if we think of the short term for the time being, we have to increase our capacity. Sales and increasing share is what we're focused on right now. And we have to really do what we plan to do.

而關於I&SS和利潤率，你說應該更高或者可以更高。好吧，我認為我們確實有能力提高盈利能力。但是如果我們暫時考慮短期，我們必須增加我們的能力。銷售和增加份額是我們現在關注的重點。我們必須真正做我們計劃做的事情。

For R&D, we, from a competitive point of view, are not trying to reduce R&D budget, but instead, rather than trying to reap the results in the short term, we want to win in this market. And so we want to invest in future solutions. And therefore, we want to achieve and have a good balance between growth and profit in thinking -- managing our business mid- to long term. I also think that we should try to aim for a margin that is higher than 20%. As for the timing, it will be influenced by the external situation amongst others.

對於研發，從競爭的角度來看，我們不是試圖減少研發預算，而是試圖在短期內獲得成果，我們希望在這個市場上取得勝利。因此，我們希望投資於未來的解決方案。因此，我們希望在思維上實現增長和利潤之間的良好平衡——管理我們的中長期業務。我還認為我們應該努力爭取高於 20% 的利潤率。至於時機，將受外部情況等影響。

Thank you. And we would like to move on to the next question, SMBC Nikko Securities, Katsura-san.

謝謝你。我們想繼續討論下一個問題，SMBC Nikko Securities，Katsura-san。

My name is Katsura of SMBC Nikko Securities. And I&SS and strategic investment, I have 2 questions. As for I&SS, as you have already talked about. And some of the inventory investment and the capital investment, how they are related, if there is any update for your development strategies. For the capital investment, and you have raised the amount that might be because of the ForEx and the semiconductor. Is there -- has there any been change for the prospects for semiconductor business? And as for JPY 900 billion for the next period, and what is the peak period? And probably you need a flexible response and because the industry itself is now a bit more restraint. So including adjustment, and if you have any comment for the capital investment.

我是三井住友銀行日興證券的桂。關於 I&SS 和戰略投資，我有兩個問題。至於I&SS，正如你已經談到的。還有一些存貨投資和資本投資，它們是如何關聯的，如果你的發展戰略有什麼更新的話。對於資本投資，您籌集的金額可能是因為外彙和半導體。半導體業務的前景是否有任何變化？至於下一期的9000億日元，高峰期是什麼時候？也許你需要一個靈活的回應，因為這個行業本身現在更加克制了。所以包括調整，如果您對資本投資有任何意見。

And the second is for strategic investment. As for the year-end financial announcement, and you talked about more than JPY 1 trillion or JPY 1.06 trillion, and you talked about (inaudible) and what the other on the second half prospects. So if you have any plans for strategic investment and the Bungie, the investment on the Bungie and because of interest rate hike and some of the background factors, if there is any impairment in the early period. And is it in your judgment? Or will it be -- impose any change for the macroscopic policies?

二是戰略投資。至於年終財務公告，您談到了超過 1 萬億日元或 1.06 萬億日元，您談到了（聽不清）以及其他關於下半年的前景。所以如果你對Bungie有什麼戰略投資計劃，對Bungie的投資以及因為加息等一些背景因素，前期是否有減值。它在你的判斷中嗎？還是會——對宏觀政策施加任何改變？

And as for I&SS and update for the inventory investment and the capital investment. And as for capital investment, and as of July, and you talked about JPY 350 billion, and that was raised to JPY 353 billion. And this is for the investment for the improved productivity. And that content is image sensor, the demand hike for the mobile phones and the shift to a higher-end product. And Nagasaki Fab 5 and the extension is one of that move. That's the capital investment.

至於庫存投資和資本投資的 I&SS 和更新。至於資本投資，截至 7 月，您談到了 3500 億日元，然後提高到 3530 億日元。這是為了提高生產力的投資。而這些內容就是圖像傳感器、手機需求的增加以及向高端產品的轉變。長崎 Fab 5 和擴建就是其中之一。這就是資本投資。

As for inventory investment. And compared to a year-on-year basis and second half of '21 and the second half of '22 and 39% of the revenue increase, and the inventory increased by 33%. So I think it is well aligned and no particular supplies, and those figures are as expected. And as for this quarter, we are going to continue our full capacity of production so as to accumulate the inventories to be ready for the next fiscal year. And there has been no change of our initial planning. So by the end of this fiscal year, and the inventory level will be raised a bit more.

至於存貨投資。與21年下半年和22年下半年相比，收入同比增長39%，庫存增長33%。所以我認為它是一致的，沒有特別的供應，這些數字符合預期。至於本季度，我們將繼續滿負荷生產，以積累庫存，為下一財年做好準備。我們最初的計劃也沒有改變。所以到本財年末，庫存水平會再提高一點。

And as for strategic investment and what's going on. And as for Q2 and the financial announcement, and we have already realized the items. And including some of the share buyback, and that's about JPY 1.23 trillion. And that investment amount is almost aligned with our initial planning.

至於戰略投資和正在發生的事情。至於第二季度和財務公告，我們已經實現了這些項目。包括部分股票回購，大約是 1.23 萬億日元。而這個投資金額幾乎與我們最初的計劃一致。

As for Bungie and as for impairment, it's not intentional. But that's up to the environmental changes. And as for Bungie itself and if there is any change in the macroscopic, the context, there seems to be no change. So the investment. As for investment, we do not have any particular concerns, including investment to Bungie. So that's it. Thank you.

至於 Bungie 和損傷，這不是故意的。但這取決於環境的變化。至於 Bungie 本身，如果宏觀上、上下文有任何變化，似乎沒有變化。所以投資。至於投資，我們沒有任何特別的顧慮，包括對 Bungie 的投資。就是這樣了。謝謝你。

Thank you very much. So it's time. Therefore, we would like to conclude earnings announcement. So thank you very much for your participation. Thank you.

非常感謝。所以是時候了。因此，我們希望結束盈利公告。所以非常感謝您的參與。謝謝你。

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

[本成績單上的英文陳述由現場通話中的一名口譯員說出。]