索尼 (SONY) 2023 Q4 法說會逐字稿

The time has come to begin the announcement of consolidated financial results of Sony Group Corporation. I'll be serving as Master of Ceremony, [Okada] of Corporate Communications. First, Mr. Totoki, President and COO and CFO will explain to you the FY '22 consolidated results and FY '23 consolidated results forecast followed by Q&A. We are scheduled to have a total of 70 minutes.

現在是時候開始公佈索尼集團公司的綜合財務業績了。我將擔任公司傳播部的 [Okada] 司儀。首先，總裁兼首席運營官兼首席財務官 Totoki 先生將向您解釋 FY '22 合併結果和 FY '23 合併結果預測，然後進行問答。我們計劃總共有 70 分鐘。

Now Mr. Totoki, please.

現在有請 Totoki 先生。

Today, I will explain the following. Consolidated sales for FY '22 were JPY 1,539.8 billion, and consolidated operating income was JPY 1,208.2 billion, both reaching record highs. Income before income tax was JPY 1,180.3 billion and income attributable to Sony Group Corporation stockholders was JPY 937.1 billion. Consolidated operating cash flow excluding the Financial Services segment was JPY 415.5 billion, primarily due to an increase in working capital. Results for FY '22 by segment are shown on this slide.

今天，我將解釋以下內容。 22 財年的合併銷售額為 15,398 億日元，合併營業收入為 12,082 億日元，均創歷史新高。所得稅前收入為 11,803 億日元，歸屬於索尼集團公司股東的收入為 9,371 億日元。不包括金融服務部門在內的綜合經營現金流為 4,155 億日元，這主要是由於營運資金的增加。此幻燈片顯示了按部門劃分的 FY '22 的結果。

The cash flow results by segment are shown here. Next, I will explain the full year consolidated results forecast for FY '23. We have decided to disclose the actual results and forecast for adjusted EBITDA on a consolidated basis, which is a group KPI for the current midrange plan and adjusted OIBDA by segment, which is a metric that adds back a portion of depreciation and amortization expenses to adjusted operating income. Please see Page 24 of your material for the methods of calculating these metrics.

按部門劃分的現金流量結果顯示在此處。接下來，我將解釋 FY '23 的全年綜合業績預測。我們已決定在綜合基礎上披露調整後 EBITDA 的實際結果和預測，這是當前中檔計劃的集團 KPI 和按部門調整的 OIBDA，這是將部分折舊和攤銷費用加回調整後的指標營業收入。有關計算這些指標的方法，請參閱材料的第 24 頁。

For FY '23, we forecast sales of JPY 11,500 billion, operating income of JPY 1,170 billion and adjusted EBITDA of JPY 1,750 billion. The consolidated operating cash flow forecast, excluding the Financial Services segment is expected to increase significantly year-on-year to JPY 1,250 billion, mainly as a result of a decrease in working capital. The FY '23 results forecast by segment is shown here.

對於 23 財年，我們預測銷售額為 115,000 億日元，營業收入為 11,700 億日元，調整後的 EBITDA 為 17,500 億日元。綜合運營現金流量預測（不包括金融服務部門）預計同比大幅增加至 12,500 億日元，這主要是由於營運資金減少。此處顯示按部門預測的 FY '23 結果。

Now I will move to an overview of each business segment. First is the Game & Network Services segment. FY '22 sales were JPY 3,644.6 billion, mainly due to the impact of foreign exchange rates and increased sales of PlayStation 5 hardware. Operating income was JPY 250 billion, primarily due to an increase in software development expenses and the recording of acquisition-related expenses despite the impact of increased sales of first-party software and improved profitability of hardware.

現在我將轉到每個業務部門的概述。首先是遊戲和網絡服務部門。 22 財年的銷售額為 36,446 億日元，主要是由於匯率的影響和 PlayStation 5 硬件銷售額的增加。營業收入為 2500 億日元，這主要是由於儘管第一方軟件銷售額增加和硬件盈利能力提高的影響，但軟件開發費用和收購相關費用的記錄有所增加。

For FY '23, we forecast sales to be JPY 3,900 billion, operating income to be JPY 270 billion and adjusted OIBDA forecast to be JPY 365 billion. Expenses related to acquisitions since FY '22, including Bungie, Inc. that will impact operating income for the current fiscal year are expected to increase approximately 20% year-on-year to be JPY 65 billion. Last quarter, PS5 hardware sell-in reached 6.3 million units, a record high for PS console for the fourth quarter, and 19.1 million units for the full fiscal year of FY '22.

對於 23 財年，我們預測銷售額為 39,000 億日元，營業收入為 2,700 億日元，調整後的 OIBDA 預測為 3,650 億日元。自 22 財年以來與收購相關的費用，包括將影響本財年營業收入的 Bungie, Inc.，預計將同比增長約 20%，達到 650 億日元。上個季度，PS5 硬件銷量達到 630 萬台，創下第四季度 PS 遊戲機的歷史新高，22 財年整個財年的銷量為 1910 萬台。

Distribution inventories have also normalized, and we are now able to deliver PS5 to customers without waiting almost all over the world. In addition, the positive impact of increased PS5 sell-in has begun to appear in engagement metrics with data-based third-party software sales exceeding the same month of the previous fiscal year in February and March. Moreover, the number of monthly active users for PS as a whole increased 2.3 million accounts year-on-year in March.

分銷庫存也已正常化，我們現在幾乎可以將 PS5 交付給世界各地的客戶，而無需等待。此外，PS5 銷量增加的積極影響已經開始出現在參與度指標中，基於數據的第三方軟件銷售額在 2 月和 3 月超過了上一財年的同月。此外，3月份PS整體月活躍用戶數同比增加230萬戶。

Since it takes about 1 to 2 months from the time hardware shipped until the effect of improved engagement becomes apparent, we will pay close attention to the engagement of -- engagement metrics for this quarter and reflect the results in our future forecast as appropriate. We aim to continuously accelerate the penetration of PS5 and aim for PS5 sell-in units for the current fiscal year to be 25 million units, the highest ever for any PS console in history.

由於從硬件發貨到提高參與度的效果變得明顯需要大約 1 到 2 個月的時間，我們將密切關注本季度的參與度——參與度指標，並在我們未來的預測中適當反映結果。我們的目標是不斷加快 PS5 的普及，目標是本財年 PS5 的銷量達到 2500 萬台，這是歷史上所有 PS 遊戲機的最高銷量。

As for software, we are continuing to strengthen and expand our first-party titles. God of War Ragnarök, which we released in November last year, won the most awards in six categories at the 2023 BAFTA Games Award. And with this huge hit, sales of first-party software for the full fiscal year of FY '22, including Bungie grew significantly with dollar-based sales increasing by 41% year-on-year. We're also planning to release a major title, Marvel's Spider-Man 2 this fiscal year. We aim to continue creating new IP, rolling out catalog titles for PC and strengthening live game service development.

至於軟件，我們正在繼續加強和擴展我們的第一方遊戲。我們於去年 11 月發布的《諸神黃昏》在 2023 年 BAFTA 遊戲獎中獲得了六個類別中最多的獎項。憑藉這一巨大的成功，包括 Bungie 在內的整個 22 財年第一方軟件的銷售額顯著增長，美元銷售額同比增長 41%。我們還計劃在本財年發布一款主要遊戲《漫威蜘蛛俠 2》。我們的目標是繼續創造新的 IP，推出 PC 目錄標題，並加強現場遊戲服務開發。

Next is Music segment. FY '22 sales were JPY 1,380.6 billion, mainly due to the impact of foreign exchange rate and an increase in streaming revenue. Operating income was JPY 263.1 billion. In addition to the recording the highest ever operating income for this segment, operating income was the highest of all six business segments. In FY '22, the profit contribution of visual media and platform was mid-teens percent of the operating income of this segment.

接下來是音樂部分。 22 財年的銷售額為 13,806 億日元，主要是由於匯率的影響和流媒體收入的增加。營業收入為 2631 億日元。除了創下該板塊有史以來最高的營業收入外，營業收入也是所有六個業務板塊中最高的。在 22 財年，視覺媒體和平台的利潤貢獻佔該部門營業收入的百分之十幾。

For FY '23, sales forecast is JPY 1,410 billion; operating income, JPY 265 billion and adjusted OIBDA to be JPY 325 billion. Streaming revenue in the fourth quarter increased 23% year-on-year for Recorded Music and 29% for Music Publishing, 8% and 13% increase on a dollar basis.

對於 FY '23，銷售額預測為 14,100 億日元；營業收入為 2650 億日元，調整後的 OIBDA 為 3250 億日元。第四季度的流媒體收入同比增長 23%（錄製音樂）和 29%（音樂出版），按美元計算分別增長 8% 和 13%。

In Recorded Music and Music Publishing, we aim to continue to grow faster and maintain a higher growth rate and profit margin with influential artists, discover and nurture new talent, expand our lineup through The Orchard and AWAL and grow business in emerging markets. And we have improved our ability to be continuously create hits in Recorded Music. An average of 43 songs ranked in the Spotify Weekly Global Top 100 in FY '22, increasing our market share significantly year-on-year. Miley Cyrus released Flowers in January and hence, become a huge hit, recording the highest number of streams in a week on Spotify.

在錄製音樂和音樂出版方面，我們的目標是繼續更快地增長並與有影響力的藝術家保持更高的增長率和利潤率，發現和培養新人才，通過 The Orchard 和 AWAL 擴大我們的陣容，並在新興市場發展業務。我們還提高了在錄製音樂中不斷創造熱門歌曲的能力。在 22 財年，平均有 43 首歌曲躋身 Spotify 每周全球前 100 名，我們的市場份額同比顯著增加。麥莉·賽勒斯 (Miley Cyrus) 在 1 月份發行了 Flowers，因此大受歡迎，創下了 Spotify 一周內播放量最高的記錄。

Next, the Pictures. Primarily due to the ForEx impact, FY '22 sales were JPY 1,369.4 billion. Operating income was JPY 119.3 billion compared to the previous fiscal year, in which a JPY 70 billion gain from the transfer of business. For FY '23, sales forecast is JPY 1,520 billion; operating income, JPY 120 billion, adjusted OIBDA to be JPY 165 billion. Sales to increase mainly due to an increase in the number of theatrical releases and growth in Crunchyroll and our businesses in India. Despite higher sales in Media Networks, operating income is expected to increase only slightly, primarily due to increased marketing costs and from the lower sales from having fewer tentpoles films. To maximize IP value over the long term as an independent studio, our business structure could steadily generate operating income on the segment above JPY 100 billion.

接下來，圖片。主要由於外匯影響，22 財年的銷售額為 13,694 億日元。與上一財年相比，營業收入為 1,193 億日元，其中業務轉讓收益為 700 億日元。對於 FY '23，銷售額預測為 15,200 億日元；營業收入為 1200 億日元，調整後的 OIBDA 為 1650 億日元。銷售額增長主要是由於院線上映數量的增加以及 Crunchyroll 和我們在印度業務的增長。儘管媒體網絡的銷售額有所增加，但營業收入預計只會略有增長，這主要是由於營銷成本增加以及主打電影較少導致銷售額下降。作為獨立工作室，為了長期最大化 IP 價值，我們的業務結構可以穩定地在 1000 億日元以上的細分市場產生營業收入。

In the U.S. since March, other studios, a major video distribution service providers have been releasing large movies and theaters is expected to be revitalized. In TV productions with increased demand for low-budget product, we are strengthening our production capabilities by establishing SPT nonfiction led by Industrial Media, which was acquired in April last year, which has nine production companies.

在美國，自3月以來，其他電影公司、一家主要的視頻發行服務商都在陸續上映大片，影院有望重新煥發活力。在對低預算產品需求增加的電視製作中，我們正在通過建立由 Industrial Media 領導的 SPT 非虛構類作品來加強我們的製作能力，Industrial Media 於去年 4 月被收購，該公司擁有 9 家製作公司。

On March 4, Crunchyroll Anime Awards were held in Japan and about 18 million votes were cast from fans in more than 200 countries and regions. In 2021, 48% of the JPY 2.7 trillion global Japanese anime market was outside of Japan and anime is growing into a global form of entertainment. Amid this growth, the number of paying subscribers of Crunchyroll, the world's leading anime-only DTC surpassed 10.7 million as of the end of March.

3月4日，Crunchyroll動漫大獎在日本舉行，來自200多個國家和地區的粉絲投下了約1800萬張選票。 2021 年，2.7 萬億日元的全球日本動漫市場中有 48% 在日本境外，動漫正在發展成為一種全球性的娛樂形式。在這種增長中，截至 3 月底，全球領先的純動漫 DTC Crunchyroll 的付費用戶數量超過了 1070 萬。

Growth potential comes from the high growth of our business in emerging markets, and we are deepening engagement with fan community, such as the overseas distribution of anime movies and through the sales of merchandise. Business performance of Crunchyroll has grown significantly by Media Networks sales and it's contributing to the profits despite amortization of costs with acquisition.

增長潛力來自我們在新興市場業務的高速增長，我們正在加深與粉絲社區的互動，例如動漫電影的海外發行和商品銷售。 Crunchyroll 的業務績效因 Media Networks 的銷售額而顯著增長，儘管通過收購攤銷了成本，但它仍在為利潤做出貢獻。

Next is the ET&S segment. FY '22 sales were JPY 2,476 billion, mainly due to the impact of ForEx despite a decrease in TV sales. Operating income was JPY 179.5 billion, primarily due to the impact of decreased TV sales. For FY '23, we expect sales to be JPY 2,380 billion; operating income, JPY 180 billion, adjusted OIBDA to be JPY 280 billion in FY '22. Despite the severe business environment, we achieved profit almost in line with the initial plan for the entire segment through operations and controlling costs.

接下來是 ET&S 部分。 22 財年的銷售額為 24,760 億日元，主要是由於外彙的影響，儘管電視銷售額有所下降。營業收入為 1795 億日元，主要是由於電視銷量下降的影響。對於 23 財年，我們預計銷售額為 23,800 億日元； 22 財年的營業收入為 1800 億日元，調整後的 OIBDA 為 2800 億日元。在嚴峻的經營環境下，我們通過經營和控製成本，實現了整個板塊基本符合最初計劃的盈利。

For end of fiscal year inventory, we further narrowed down our January plan, mainly in TV and finished at a level almost on par with the end of FY '21. In FY '23, risk such as more severe economic slowdown are expected. So we have lowered our sales forecast. As for operating income, we expect to maintain the level of previous fiscal year by reducing fixed costs in TV and smartphones.

對於財年末的庫存，我們進一步縮減了 1 月份的計劃，主要是在電視方面，並完成了與 21 財年末幾乎持平的水平。在 23 財年，預計會出現更嚴重的經濟放緩等風險。所以我們降低了我們的銷售預測。至於營業收入，我們預計通過降低電視和智能手機的固定成本來維持上一財年的水平。

Demand continues to be trending well for digital cameras and primarily with the introduction of competitive products, we plan to maximize profit opportunities. In order to strengthen the business structure, we are promoting a two-axis management to promote growth and maintain profitability of existing business and therefore, we disclosed the actual annual sales of the profit growth accessing the supplemental information. We plan to exploit the initiatives in the growth axis at the next business segment meeting.

數碼相機的需求繼續保持良好趨勢，主要是隨著競爭產品的推出，我們計劃最大限度地提高利潤機會。為了加強業務結構，我們正在推動雙軸管理以促進增長並保持現有業務的盈利能力，因此我們披露了訪問補充信息的利潤增長的實際年度銷售額。我們計劃在下一次業務部門會議上利用增長軸上的舉措。

Next is the I&SS segment. FY '22 sales were JPY 1,402.2 billion, mainly due to the impact of ForEx and an increased sales of image sensors for mobile devices. Despite increased expenses, operating income was JPY 212.2 billion, mainly due to the favorable impact of ForEx and increased sales. For FY '23, we forecast sales to be JPY 1.6 trillion, operating income to be JPY 200 billion and adjusted OIBDA to be JPY 445 billion.

接下來是 I&SS 部分。 22 財年的銷售額為 14,022 億日元，主要是由於 ForEx 的影響和移動設備圖像傳感器銷售額的增加。儘管費用有所增加，但營業收入為 2122 億日元，這主要是由於 ForEx 的有利影響和銷售額的增加。對於 23 財年，我們預測銷售額為 1.6 萬億日元，營業收入為 2000 億日元，調整後的 OIBDA 為 4450 億日元。

The smartphone product market in the fourth quarter, mainly in China, has deteriorated slightly from the forecast at the time of our previous earnings and we have to anticipate that the forecast for demand for sensors this fiscal year will start at a lower level than anticipated. Based on the recognition that the business environment for the current fiscal year will be extremely unstable, we have factored into the operating income forecast for this fiscal year, the continued slump in demand in the first half of fiscal year and the risk of increased costs from the mass production of new products. On the other hand, even in such a severe environment, our company is driving the trend towards larger size mobile sensors higher image quality and performance and flagship models of Chinese manufacturers equipped with our large format 1-inch sensor are being released to the market continuously.

第四季度主要在中國的智能手機產品市場與我們之前財報發佈時的預測相比略有惡化，我們不得不預計本財年對傳感器需求的預測將從低於預期的水平開始。基於對本財年經營環境極不穩定的認識，我們已將本財年的營業收入預測、上半年需求持續低迷以及成本增加的風險考慮在內。新產品的批量生產。另一方面，即使在如此惡劣的環境下，我們公司也在推動移動傳感器向更大尺寸、更高圖像質量和性能發展的趨勢，配備我們大畫幅1英寸傳感器的中國製造商的旗艦機型正在不斷向市場發布.

Our image sensor business has significantly outperformed our competitors and our global market share on a value basis has grown significantly from 44% in FY '21 to 51% in FY '22. By launching sophisticated, highly differentiated technologies, we aim to further solidify our leading position in high value-added products. By doing so, we aim to steadily build the business foundation that will accelerate growth again when the market for finally -- for final product recovers, which is expected in FY '24 and beyond.

我們的圖像傳感器業務明顯優於我們的競爭對手，我們在價值基礎上的全球市場份額已從 21 財年的 44% 顯著增長到 22 財年的 51%。通過推出尖端、高度差異化的技術，我們旨在進一步鞏固我們在高附加值產品方面的領先地位。通過這樣做，我們的目標是穩步建立業務基礎，以便在最終產品市場最終復甦時再次加速增長，預計在 24 財年及以後。

Next is the Financial Services segment. In FY '22, Financial Services revenues were JPY 1,454.5 billion due to a decrease in net gains and losses on investments in the separate accounts at Sony Life Insurance. Operating income was JPY 223.9 billion, primarily due to the recording of gains on the sales of real estate at Sony Life and the impact of recovery of funds associated with the unauthorized withdrawal.

接下來是金融服務部門。在 22 財年，金融服務收入為 14,545 億日元，原因是索尼人壽保險獨立賬戶投資的淨損益減少。營業收入為 2239 億日元，主要是由於記錄了索尼人壽房地產銷售收益以及與未經授權的提款相關的資金回收的影響。

From this fiscal year, we will apply the new accounting standard IFRS 17, which pertains to insurance contracts. We plan to show the detailed impact on results associated with the change at the next earnings announcement.

從本財年開始，我們將採用與保險合同相關的新會計準則 IFRS 17。我們計劃在下一次收益公告中顯示與變更相關的結果的詳細影響。

Financial Services revenue is expected to decrease significantly primarily due to the impact of the surrender benefit of insurance premium income no longer being recorded as a revenue, whereas the entire amount was recorded as revenue in the past. Concerning this impact, Financial Services revenue for FY '23 is expected to be JPY 870 billion. The operating income forecast is JPY 180 billion, and adjusted OIBDA is forecasted to be JPY 205 billion.

金融服務收入預計將大幅下降，這主要是由於保險費收入的退保利益不再被記錄為收入，而過去全部被記錄為收入的影響。考慮到這一影響，23 財年的金融服務收入預計為 8700 億日元。營業收入預測為 1800 億日元，調整後的 OIBDA 預計為 2050 億日元。

Lastly, I'll explain the progress of the fourth midrange plan. 3-year cumulative adjusted EBITDA, which is the fourth mid-range plan's KPI has progressed significantly beyond the initial plan, mainly in the Music and Pictures segments and is currently expected to be JPY 5 trillion or 16% higher than the target of JPY 4.3 trillion. As you can see, we continue to see steady growth every fiscal year since FY '20.

最後，我會解釋一下第四個中端計劃的進展。 3 年累計調整後的 EBITDA，這是第四個中期計劃的 KPI，已經大大超出了最初的計劃，主要是在音樂和圖片領域，目前預計為 5 萬億日元，比 4.3 日元的目標高出 16%兆。正如您所看到的，自 20 財年以來，我們在每個財政年度都繼續保持穩定增長。

Regarding capital allocation, we have lowered our forecast for operating cash flow for the cumulative 3 years, the primary source of capital to JPY 2.5 trillion from the original plan of JPY 3.1 trillion, mainly to reflect an increase in working capital in the G&NS and I&SS segments.

在資本配置方面，我們將主要資本來源累計 3 年的經營現金流預測從原計劃的 3.1 萬億日元下調至 2.5 萬億日元，主要是為了反映 G&NS 和 I&SS 營運資金的增加段。

Capital expenditure is expected to increase for the initial plan to JPY 1.9 trillion with JPY 0.4 trillion, mainly allocated to image sensor capital expenditure and server investments in corporate R&D and G&NS.

初始計劃的資本支出預計將增加至 1.9 萬億日元，其中 0.4 萬億日元主要分配給圖像傳感器資本支出以及企業研發和 G&NS 的服務器投資。

In terms of strategic investments, since we decided to increase working capital and capital expenditures and in consideration of the current M&A market environment, we decided to reduce the amount from the initial plan of JPY 2 trillion to JPY 1.8 trillion. To grow over the mid- to long term, we will continue to invest. However, in the short term, we aim to carefully assess the valuations and timing investments given the recent changes in the market environment. We plan to compensate for the decrease in operating cash flow due to the increase in working capital, mainly through short-term borrowing and to maintain a total occasion of JPY 4 trillion.

在戰略投資方面，由於我們決定增加流動資金和資本支出，並考慮到當前的併購市場環境，我們決定將金額從最初的 2 萬億日元減少到 1.8 萬億日元。為了實現中長期增長，我們將繼續投資。然而，在短期內，鑑於近期市場環境的變化，我們的目標是謹慎評估估值和時機投資。我們計劃主要通過短期借款來補償因營運資金增加而導致的經營現金流量減少，並維持 4 萬億日元的總額。

We have positioned this fiscal year as the year to steadily achieve the targets of the current mid-range plan, while emphasizing the management of immediate risks at a time when the business environment is unstable. In the next mid-range plan, we aim to achieve a balance between strongly emphasizing mid to long-term business growth and profit growth during the period of the plan. We aim to prepare for this during this fiscal year and show the content at the beginning of the next fiscal year.

我們將本財年定位為穩步實現當前中期計劃目標的一年，同時在經營環境不穩定的情況下強調對眼前風險的管理。在下一個中期計劃中，我們的目標是在計劃期間內，在強調中長期業務增長和利潤增長之間取得平衡。我們的目標是在本財政年度為此做好準備，並在下一財政年度開始時展示這些內容。

Together with the Sony Group's management team and the employees around the world, we aim to create a positive spiral of growing our business, attracting talented people, increasing corporate value and giving back to society. That is all for my explanation.

我們與索尼集團的管理團隊和世界各地的員工一起，旨在創造一個發展業務、吸引人才、增加企業價值和回饋社會的積極循環。這就是我的解釋。

It was a presentation by Mr. Totoki. After this, from 4:20, we have Q&A from the media; from 4:45, Q&A from investors and analysts; and we allocate about 20 minutes each for Q&A sessions. (Operator Instructions)

這是Totoki先生的演講。之後，從4點20分開始，我們有媒體問答環節； 4:45開始，投資者和分析師問答環節；我們為每個問答環節分配了大約 20 分鐘的時間。 （操作員說明）

Thank you for waiting. We will now begin the Q&A session with the media. So those people who respond will be Mr. Hiroki Totoki, President, COO and CFO; Ms. Naomi Matsuoka, Senior Vice President; Mr. Sadahiko Hayakawa, Senior Vice President to the Q&A session. (Operator Instructions)

感謝您的等待。我們現在將開始與媒體的問答環節。因此，做出回應的人將是總裁、首席運營官兼首席財務官 Hiroki Totoki 先生；高級副總裁 Naomi Matsuoka 女士；問答環節高級副總裁早川貞彥先生。 （操作員說明）

The first question is Mr. Tsutsumi Nikkei.

第一個問題是Tsutsumi Nikkei先生。

I have two questions, if I may. The first question about the growth going forward in the short term and medium term. This fiscal year, ROIC for each business is going to -- the ROIC is going to come down. The increase in inventory and other factors are there. So when would you expect to see increase in ROIC again? For each business, there may be differences, especially for games and entertainment. Can you explain what is the prospect going forward? And specifically, what will be the drivers for improving ROIC? Can you please elaborate on that? That's my first question.

如果可以的話，我有兩個問題。關於短期和中期增長的第一個問題。本財年，每家企業的 ROIC 將下降。存貨增加等因素都有。那麼你預計什麼時候會再次看到 ROIC 的增加？對於每個業務，可能存在差異，尤其是遊戲和娛樂。你能解釋一下未來的前景嗎？具體來說，提高 ROIC 的驅動因素是什麼？你能詳細說明一下嗎？這是我的第一個問題。

Secondly, in the medium- to long-term growth, mobility and Metaverse are the key in this area. Possible risks and the hurdles and challenges, how do you look at the risks and the hurdles, for example, competitive environment? What is your outlook? That's my first question. And second question, short term, you'll be financing with borrowing. Excluding Financial Services and net debt, is this temporary measure? Or Totoki-san became President, and are you going to -- you have -- you will be changing the rules for the discipline and you'll be using more of the debt borrowing? What is the direction going forward?

其次，在中長期增長中，移動和元界是這方面的關鍵。可能存在的風險和障礙和挑戰，你如何看待風險和障礙，比如競爭環境？你的看法是什麼？這是我的第一個問題。第二個問題，短期內，您將通過借款融資。不包括金融服務和淨債務，這是臨時措施嗎？或者 Totoki-san 成為了總統，你是否打算——你已經——改變紀律規則並且你將使用更多的債務借款？前進的方向是什麼？

Thank you for questions. Well, then, first, your first question, ROIC, entertainment -- mainly about entertainment, that's your question. With regards to ROIC, FY '22, as you know, especially in game, PS5 inventory has increased. Working capital increased as a result, which resulted in deterioration of ROIC. That is a major point. Basically, PS5 hardware sales increased, which resulted in a decrease in inventory. So this will be working positively for ROIC, especially acquisition-related expenses in FY '22 and FY '23, JPY 50 billion to JPY 60 billion of expense. So the -- that impact, it will be much less in FY '24 and onwards, which will also be a factor to increase ROIC.

謝謝你的問題。那麼，首先，你的第一個問題，ROIC，娛樂——主要是關於娛樂，這是你的問題。關於 ROIC，22 財年，如您所知，尤其是在遊戲方面，PS5 庫存有所增加。營運資本因此增加，導致 ROIC 惡化。這是一個重點。基本上，PS5 硬件銷量增加，導致庫存減少。因此，這將對 ROIC 產生積極影響，尤其是 22 財年和 23 財年的收購相關費用，500 億至 600 億日元的費用。因此 - 這種影響在 24 財年及以後會小得多，這也將是增加 ROIC 的一個因素。

And then for Music, M&A and catalog acquisition had impact upon deterioration of ROIC. But in the medium to long term, M&A is sure to contribute to growth. And the catalog -- having catalog is indeed -- it has been strengthening our position in the industry. Therefore, for ROIC, you look at the medium-term perspective, and I believe that it is going to come to optimum level.

然後對於音樂，併購和目錄收購對 ROIC 的惡化產生了影響。但從中長期來看，併購肯定會促進增長。而目錄——確實有目錄——它一直在加強我們在行業中的地位。因此，對於 ROIC，從中期來看，我相信它會達到最佳水平。

As for the Pictures recovery from the COVID-19 and reopening of the economy. So theatrical release will increase and production will also be increased. Production expense increases. ROIC will go down. But then with the theatrical release, profit will be generated and ROIC will go down again. So we'll be growing in the medium term.

至於圖片從 COVID-19 中恢復並重新開放經濟。所以院線上映會增加，製作也會增加。生產費用增加。 ROIC 會下降。但隨後隨著影院上映，將產生利潤，ROIC 將再次下降。所以我們將在中期增長。

And then mobility and Metaverse, what possible risks are there and what are the hurdles was your question. With regards to mobility, we are in the mid of development. So at this point in time, we do not -- we are not at a stage where we should be discussing risks or concerns. But opportunities are huge. Industry is transforming. It is a time of transformation. So we take advantage of this time and with joint venture with Honda Motors, we are going to show results.

然後是移動性和 Metaverse，有哪些可能的風險，有哪些障礙是你的問題。關於機動性，我們正處於發展的中期。所以在這個時候，我們不——我們不在我們應該討論風險或擔憂的階段。但機會是巨大的。行業正在轉型。這是一個轉變的時期。因此，我們利用這段時間與本田汽車公司建立合資企業，我們將展示成果。

And then with regards to Metaverse, the expectation is higher than no one is expecting. But in the medium to long term, with the evolution and development of technology, at some point in the future, the market will blossom. And more than anything else, we are a company which is centering around entertainment.

然後關於Metaverse，期望值比任何人都高。但從中長期來看，隨著技術的演進和發展，在未來的某個時刻，市場會開花結果。最重要的是，我們是一家以娛樂為中心的公司。

And the 3DCG (inaudible) related Metaverse, we have technology, which is our strength. So in line with the growth of the market, in a timely fashion, we are going to maximize our technology.

和3DCG（聽不清）相關的元界，我們有技術，這是我們的強項。因此，隨著市場的增長，我們將適時地最大化我們的技術。

And then net debt. Excluding Financial Services, net debt situation. Debt, equity balance is basically the balance with the rating. So on that point, I'd like to invite Mr. Hayakawa, to make some supplementary comment.

然後是淨債務。不包括金融服務，淨債務情況。債務、權益餘額基本上是與評級餘額。所以關於這一點，我想請早川先生補充一下。

Thank you for your question. First, balance sheet net debt, you mentioned. As of the end of March, the consolidated, excluding Financial Services, JPY 590 billion. As Totoki-san explained, short term, PlayStation 5 production increased, which resulted in increase in working capital. And this is -- PS5 is to be penetrated widespread for growth and with the intention, we are increasing working capital.

謝謝你的問題。首先，你提到的資產負債表淨債務。截至 3 月底，綜合（不包括金融服務）為 5900 億日元。正如 Totoki-san 解釋的那樣，短期內，PlayStation 5 產量增加，導致營運資金增加。這是 - PS5 將被廣泛滲透以實現增長，並且我們打算增加營運資金。

As Totoki said in his speech, for this, we finance with short-term borrowing. Next fiscal year -- or this fiscal, operating cash flow is JPY 1.25 trillion. And from third quarter this fiscal year, we are going to convert inventory into cash and manage cash.

正如 Totoki 在演講中所說，為此，我們通過短期借款進行融資。下一財年——或本財年，運營現金流為 1.25 萬億日元。從本財年的第三季度開始，我們將把庫存轉化為現金並管理現金。

Now about fiscal discipline, basically our fiscal discipline remains unchanged. We have a strong financial basis. For example, one of the discipline, the ratio of capital to the shareholders is 50.3%. We have strong financial foundation. So while maintaining fiscal discipline, we are making investments for growth. So the growth investment and the fiscal discipline and the efficiency of balance sheet, we hit the right balance and come up with a fiscal -- the financial -- capital financial policy.

現在關於財政紀律，基本上我們的財政紀律沒有改變。我們擁有強大的財務基礎。例如，其中一項紀律，出資比例為50.3%。我們有雄厚的資金基礎。因此，在保持財政紀律的同時，我們正在為增長進行投資。因此，增長投資和財政紀律以及資產負債表的效率，我們達到了正確的平衡，並提出了財政 - 金融 - 資本金融政策。

So we would like to invite next question, please from (inaudible).

所以我們想邀請下一個問題，請來自（聽不清）。

So from the (inaudible). I hope you can hear my voice. So I have two questions. First question is due to the macroeconomic situation change. So for the ET&S, I think you have referred, so in the European country, there have been a slowdown in the economy. And therefore, due to the reason, there are lots of companies providing a conservative forecast. And therefore, how is it incorporated in FY '23 forecast? So that is my first question. And the second question is that outside from the financial results, now because there have been changes in the top management of the financial company, and therefore, could you make a comment on this?

所以從（聽不清）。我希望你能聽到我的聲音。所以我有兩個問題。第一個問題是由於宏觀經濟形勢的變化。所以對於 ET&S，我想你已經提到了，所以在歐洲國家，經濟已經放緩。因此，由於這個原因，有很多公司給出了保守的預測。因此，它如何納入 FY '23 預測？所以這是我的第一個問題。第二個問題，在財務業績之外，現在因為財務公司的高層管理人員發生了變化，因此，您能否對此發表評論？

So thank you very much for the question. For the first question, talking about the macroeconomic condition being changed. And looking at the whole, the business environment (inaudible), there have been a financial restraint. And also there -- due to this Ukraine issue and also the global economy disruption, and those conditions have not changed from the last year. And therefore, I don't have any optimistic forecast. However, in advanced countries and especially in the European countries, I believe there will be a slowdown. And also for the emerging countries like China, due to the reopening of the pandemic, there is a forecast for the recovery. However, my gut feeling is that there is still intransparency. And therefore, that is a global condition.

非常感謝你提出這個問題。關於第一個問題，關於宏觀經濟形勢正在發生變化。從整體來看，商業環境（聽不清）存在財務限制。還有——由於烏克蘭問題和全球經濟中斷，這些情況與去年相比沒有改變。因此，我沒有任何樂觀的預測。但是，在發達國家，尤其是歐洲國家，我相信會出現放緩。而對於像中國這樣的新興國家，由於大流行的重新開放，有復甦的預測。然而，我的直覺是仍然存在不透明。因此，這是一個全球條件。

However, for our business -- so from our business perspective, so the U.S. economic condition is going to give a direct impact. And also there is a great impact to the global economy. And therefore, we focus on that U.S. economy. And talking about -- so there had been a change of the CEO. And our intention for this change is that Mr. (inaudible) is going to assume the CEO position starting from the next year. Because he had worked in the Finance Ministry and also more (inaudible), and therefore, he had contributed to the smooth operation of the monetary market, and he has a great knowledge. And therefore, utilizing his know-how as well as knows and experience, we would like utilizing the corporate governance, sustainability and also in the global economic condition. And therefore, he has this great knowledge.

然而，對於我們的業務——從我們的業務角度來看，美國經濟狀況將產生直接影響。並且對全球經濟也有很大的影響。因此，我們專注於美國經濟。並且談論 - 所以首席執行官發生了變化。我們對這一變化的意圖是，（聽不清）先生將從明年開始擔任首席執行官一職。因為他曾在財政部工作過，而且還更多（聽不清），因此，他為貨幣市場的平穩運行做出了貢獻，而且他有很多知識。因此，利用他的專業知識以及知識和經驗，我們希望利用公司治理、可持續性以及全球經濟狀況。因此，他擁有這種偉大的知識。

And therefore, since FY 2020, so he had been serving as a senior advisor, giving us advise. And this time, so we expect him to contribute to this leadership. And therefore, from the overall decision, we had asked him to assume this position. That is all.

因此，自 2020 財年以來，他一直擔任高級顧問，為我們提供建議。而這一次，我們希望他能為領導層做出貢獻。因此，從整體決策來看，我們讓他擔任這個職位。就這些。

Let us move on to the next question. [Nakajima] from (inaudible), please.

讓我們繼續下一個問題。 [Nakajima]，請來自（聽不清）。

This is Nakajima from [Kyoto].

我是來自[京都]的中島。

I have two questions. Regarding PlayStation 5, this fiscal year, 25 million is the target, which is the highest ever. Compared to PS 1 and 2, is it the highest ever compared to those units? If that is the case, smartphone games is recently very popular and the hardware costs have been going up. Prices have been going up with such a severe environment is PS5 really popular. What is your take on that?

我有兩個問題。關於PlayStation 5，本財年，目標是2500萬，是有史以來最高的。與 PS 1 和 2 相比，它是有史以來最高的嗎？如果是這樣的話，最近智能手機遊戲非常流行，硬件成本一直在上漲。在如此嚴峻的環境下價格一直在上漲，PS5才真正走紅。你對此有何看法？

And for smartphone games being really popular, the game consoles, what is the -- what is going to be the changes in the existence of that in FY '23? On a profit basis, this part is going to go down for software. So you talked about the increase in software development costs. With the background of that, can you specifically share that information with us?

對於真正流行的智能手機遊戲，遊戲機，在 FY '23 中存在的變化是什麼？在利潤的基礎上，這部分將用於軟件。所以你談到了軟件開發成本的增加。在此背景下，您能否具體與我們分享該信息？

Thank you very much for the question. So this is about the games. For this fiscal year, the target for PS5 is 25 million units. The reason is because compared to the past PS generations, compared to them, in a single fiscal year, 25 million units, if we can achieve that, it will be the highest level ever.

非常感謝你的提問。所以這是關於遊戲的。本財年，PS5 的目標是 2500 萬台。原因是因為對比過去的PS世代，對比他們，單財年2500萬台，如果能做到，那將是有史以來的最高水平。

The reason why we believe that this is possible, PS4, customers exist now and the PS4 usage use them and they switch to PS5. And we looked at how much would be switching. And also there are customers -- new customers also, and we've been looking at that as well. And based on the data, we have put together this forecast. And based on this forecast, we believe that 25 million units within this fiscal year is something that we would we believe that we can achieve.

我們之所以相信這是可能的，PS4，客戶現在已經存在，並且 PS4 用戶使用它們，然後他們切換到 PS5。我們研究了有多少會被轉換。還有客戶——也有新客戶，我們也一直在關注這一點。根據這些數據，我們匯總了這個預測。基於這一預測，我們相信在本財年內達到 2500 萬台是我們相信能夠實現的目標。

And also regarding the second question, or rather what would be the meaning of having these game consoles in the future. And regardless of the times, having some kind of hardware at hand is necessary. The computing power will be at hand or it would be -- it could be in the cloud. So in the future, that change could happen. But in any case, some kind of a client would be necessary to enjoy different games. So with the evolution of technologies and the hardware that matches the times, providing that time of hardware will create value.

還有關於第二個問題，或者更確切地說，將來擁有這些遊戲機的意義是什麼。無論時代如何，手頭都有某種硬件是必要的。計算能力將近在咫尺，也可能在雲端。所以在未來，這種變化可能會發生。但無論如何，需要某種客戶端才能享受不同的遊戲。所以隨著技術的演進和與時俱進的硬件，提供硬件的時間就會創造價值。

And also -- regarding your second question, even though the revenue is going up, why is the profits going down? One is the game development costs are going up. And also from a technical standpoint, the acquisition-related costs is increasing this term. The game development cost is going up because of the following reasons. The first-party software development is going to be strengthened, and the live services will be launched. And intentionally, we are enhancing this part. So that is why the expenses are increasing. That's all.

還有——關於你的第二個問題，即使收入在上升，為什麼利潤在下降？一是遊戲開發成本在上升。而且從技術角度來看，與收購相關的成本也在增加。由於以下原因，遊戲開發成本正在上升。加強第一方軟件開發，推出直播服務。我們有意增強了這一部分。這就是為什麼費用在增加的原因。就這樣。

[Sasaka] from [Nikkei Business], please.

[日經商業]的[Sasaka]，請。

About the decrease of operating cash flow. Earlier, you said that the working capital has increased. Can you elaborate more specifically what are the factors, which resulted in increase in working capital? Secondly, is this impact temporary? Or this will be continuing into this fiscal year, please?

關於經營性現金流量的減少。早些時候，你說營運資金增加了。您能否更具體地說明導致營運資金增加的因素是什麼？其次，這種影響是暫時的嗎？或者這將持續到本財政年度，好嗎？

Thank you. On that question, first, FY '22 operating cash flow was low level. And the reason for that, and is it going to return to recover, the conclusion is, it is going to recover next year. And the details, I'd like to ask Hayakawa-san to explain.

謝謝。在這個問題上，首先，FY '22 的運營現金流量處於低水平。其原因，它是否會恢復，結論是，它會在明年恢復。至於詳細情況，我想請早川同學解釋一下。

Thank you for your question. Your question about operating cash flow. FY '23 result, JPY 415.5 billion, an increase in working capital mainly from gam business and image sensor business increase in the inventory. Game business, as I mentioned earlier, PlayStation 5 production, there are constraints in production. But the constraint is removed. So the increased production, which resulted in increased working capital.

謝謝你的問題。你關於經營現金流的問題。 23 財年的結果為 4155 億日元，營運資金的增加主要來自 gam 業務和圖像傳感器業務的庫存增加。遊戲業務，正如我前面提到的，PlayStation 5 的生產，在生產方面存在限制。但是約束被刪除了。因此，產量增加，導致營運資金增加。

Secondly, the movie production cost and the cash outflow is there with the production. Now under COVID-19, the film production was not as much as possible in the past. And in production, marketing expense is incurred. But the theatrical release is not done. So the cash flow after was not there during pandemic. But from next -- the last fiscal year, normalization occurred. So increase in working capital and the normalization resulted an increase in theatrical release.

其次，電影的製作成本和現金流出是隨著製作而來的。現在在 COVID-19 下，電影製作不像過去那麼多了。並且在生產中產生營銷費用。但是院線上映還沒有完成。所以在大流行期間沒有現金流。但是從下一個 - 上一個財政年度開始，正常化發生了。因此，營運資金的增加和正常化導致了影院放映的增加。

As Mr. Totoki said earlier, for this fiscal year, PlayStation 5 will be sold in the operating cash flow of JPY 1.25 trillion, we are expecting. That's all from me.

正如 Totoki 先生早些時候所說，本財年，我們預計 PlayStation 5 的運營現金流將達到 1.25 萬億日元。這都是我的。

So due to the time constraint, we would like to invite the last question. (Operator Instructions) So I think we have no more questions. Therefore, we would like to conclude this Q&A session. Thank you very much.

所以由於時間關係，我們想邀請最後一個問題。 （操作員說明）所以我認為我們沒有更多問題了。因此，我們想結束本次問答環節。非常感謝。

So excuse me, please wait. So from the freelance, [Nishida-san], please. Are you able to Join, Nishida-san, please?

所以不好意思，請稍候。所以來自自由職業者，[Nishida-san]，請。西田先生可以加入嗎？

So we would like to conclude this Q&A session. So we are going to have the Q&A session with the investors and analysts from 4:45. Thank you.

那麼我們想結束本次問答環節。所以我們將從 4:45 開始與投資者和分析師進行問答環節。謝謝。

Thank you very much for waiting. Now we would like to start Q&A session with investors and analysts. So I'm going to serve as a moderator. My name is (inaudible) from IR Group. The respondents are those three people. And please refer to the instructions that have been already set. (Operator Instructions)

非常感謝您的等待。現在我們想開始與投資者和分析師的問答環節。所以我要擔任主持人。我是 IR Group 的（聽不清）。回答者就是那三個人。並請參考已經設置好的說明。 （操作員說明）

From BofA Securities, Hirakawa-san, please?

來自美銀證券的 Hirakawa-san，好嗎？

So this is Hirakawa from BofA Securities. For the sensors and games and today, so according to the presentation, I&SS has been risen to 53%. And therefore, so I think this kind of changing to the large scale has contributed to the improvement to 51%. And are you going to improve more? And also talking about the development road map with partners.

我是美國銀行證券公司的 Hirakawa。對於傳感器和遊戲以及今天，根據介紹，I&SS 已經上升到 53%。因此，我認為這種大規模的改變有助於提高到 51%。你會提高更多嗎？並且還與合作夥伴談論發展路線圖。

And the second is about the gaming, and there have been an increase of the cost for the games and also for the M&A costs, so 20% increase, so increase of JPY 10 billion, so game development costs. And how much increase was there for the game development costs? Those are the two questions.

第二個是關於遊戲，遊戲成本和併購成本都有所增加，增加了 20%，增加了 100 億日元，遊戲開發成本。遊戲開發成本增加了多少？這是兩個問題。

Thank you very much for the question. For the first -- for the I&SS market share. So as I have mentioned in my presentation. So currently, for the smartphone cameras and for the sensors, so the large scale centers, and that's driving -- so we are driving. And for the Chinese OEM and there have been one in sensors. However, thinking about that, in the midterm, we are able to increase our market share in the future. So this is the first point.

非常感謝你的提問。首先——I&SS 市場份額。正如我在演講中提到的那樣。所以目前，對於智能手機攝像頭和傳感器，大型中心，這就是驅動——所以我們正在驅動。而對於中國 OEM 來說，在傳感器方面已經有了一個。但是，考慮到這一點，在中期，我們能夠在未來增加我們的市場份額。所以這是第一點。

And for the second point, for the Game & Network Services, the game development cost and how much increase was there. So Matsuoka is going to explain. Matsuoka-san, please.

第二點，對於遊戲和網絡服務，遊戲開發成本以及增加了多少。所以鬆岡要解釋一下。松岡先生，請。

So talking about the development cost for the games and how much increase was there -- so actually speaking, so HR costs and also the development costs. So -- and also due to the increase of M&A cost was there.

因此，談論遊戲的開發成本以及增加了多少 - 實際上，人力資源成本和開發成本。所以——也是由於併購成本的增加。

And talking about the HR costs and also the development costs. So for -- within that, the development costs in comparison to previous year, we expect an increase. However, we are going to -- so I think we are able to offset the costs. And for the M&A cost, so the Bungie, Inc. for this year, for the full year, we are going to be consolidated, and therefore, that's JPY 12.3 billion increase and therefore, JPY 65 billion. So talking about the sales cost and for the PS5, so we expect more sales of PS5. And therefore, there will be the increase of that cost.

並談論人力資源成本和開發成本。因此 - 在此範圍內，與上一年相比的開發成本，我們預計會增加。但是，我們將 - 所以我認為我們能夠抵消成本。對於併購成本，Bungie, Inc. 今年，全年，我們將進行合併，因此增加 123 億日元，因此增加 650 億日元。所以談到銷售成本和 PS5，所以我們預計 PS5 的銷量會更高。因此，該成本將會增加。

Moving on to the next question. From JPMorgan Securities, Ayada-san please.

繼續下一個問題。請來自摩根大通證券公司的 Ayada-san。

I also have two questions. First question regarding games. This term, the operating profit is JPY 20 billion -- is going to increase by JPY 20 billion. On Page 15, there are several items listed up. So can you elaborate a little more on them? Mainly, there are three points. The hardware loss is going to improve. Right now, the yen is 130 to the dollar. So is it based on that? Our memory and parts cost going to go down, so are there any factors that would drive the improvements? And for the software, the first-party software is going to decrease according to your forecast. How about third-party software and other types?

我還有兩個問題。關於遊戲的第一個問題。本期營業利潤為 200 億日元——將增加 200 億日元。在第 15 頁上，列出了幾個項目。那麼你能詳細說明一下嗎？主要有三點。硬件損失將會改善。現在，日元兌 1 美元為 130。那麼是基於此嗎？我們的內存和零件成本會下降，那麼有什麼因素可以推動改進嗎？對於軟件，第一方軟件會根據您的預測減少。第三方軟件和其他類型怎麼樣？

And for SG&A, you talked about that just now. Last year, it was not really included. So what is the difference in this term and last term for games?

對於 SG&A，您剛才談到了這一點。去年，它並沒有真正包括在內。那麼遊戲這學期和上學期有什麼區別呢？

Secondly, for image sensors, for fourth quarter and first quarter, if you compare the wafer introduction was slowed down. From your perspective, the smartphone market situation, depending on the regions or North America, depending on the models and channels and if there's any periods that will -- we see recoveries, please let us know.

其次，對於圖像傳感器，第四季度和第一季度，如果比較晶圓引入速度放緩。從你的角度來看，智能手機市場的情況，取決於地區或北美，取決於型號和渠道，如果有任何時期——我們看到復蘇，請告訴我們。

Thank you very much for your question. Regarding -- your first question regarding the games. This term, compared to before, it will -- the profits will go up by JPY 20 billion. And what is the breakdown of that? First of all, regarding the hardware, there is the foreign exchange situation and also the material costs is also a factor. So it's a combination. And with that, we believe that the profit will improve from there.

非常感謝你的問題。關於 - 你關於遊戲的第一個問題。與之前相比，本學期利潤將增加 200 億日元。它的細目是什麼？首先在硬件方面，有外匯情況，材料成本也是一個因素。所以這是一個組合。因此，我們相信利潤將從那裡提高。

And also regarding the software, it's a slight increase, but basically it will be flat. The add-ons is not going to particularly go down with -- in our assumption.

還有在軟件方面，略有增加，但基本上是持平的。在我們的假設中，附加組件不會特別下降。

Regarding the third-party software, maybe we are a little bit careful. In the first quarter, we will look at the performance of the first quarter and then review it once again. So that was about the software. And also, regarding how it is recognized, from this term, for software development costs will be listed up. The live services is a new service that we will develop and provide. And along with that, the development process has been revisited and a part will be included in the capital or it will be capitalized. That's all.

關於第三方軟件，也許我們有點小心了。一季度，我們先看看一季度的表現，再回顧一遍。所以這是關於軟件的。而且，關於如何識別，從這個術語開始，軟件開發成本將被列出。實時服務是我們將開發和提供的一項新服務。與此同時，重新審視了開發過程，一部分將包含在資本中或將資本化。就這樣。

And regarding I&SS -- excuse me, the smartphone market situation. Regarding China, we are not optimistic. If we look at the logistical inventory levels in the fourth quarter at around February, it went down slightly but in March it went up again. So we believe that we should not be optimistic. And also, the mid- to low camera sensors, the inventory levels of our competitors are quite high. So we believe that the price will be going down rapidly. So again, we're not optimistic about that.

關於 I&SS——對不起，智能手機市場情況。對於中國，我們並不樂觀。如果我們看一下四季度 2 月份左右的物流庫存水平，它略有下降，但在 3 月份又上升了。所以我們認為不應該樂觀。而且，中低端相機傳感器，我們競爭對手的庫存水平相當高。所以我們相信價格會迅速下降。因此，我們對此並不樂觀。

And in North America and Asia, the smartphone markets there, especially for the high-end smartphones, in the fourth quarter -- compared to the fourth quarter, the situation has weakened slightly. So for FY '23, that's our assumption. So overall, for the smartphone market, we believe that we should not be optimistic. So currently, that is what we believe. Personally, I believe that the recovery would come in, in FY '24. That's all.

在北美和亞洲，那裡的智能手機市場，尤其是高端智能手機，在第四季度——與第四季度相比，情況略有減弱。所以對於 FY '23，這是我們的假設。所以總體而言，對於智能手機市場，我們認為不應該樂觀。所以目前，這就是我們所相信的。就我個人而言，我相信復甦將在 24 財年到來。就這樣。

Then I'd like to move on to the next question. SMBC Nikko Securities, Katsura-san, please.

那麼我想繼續下一個問題。 SMBC 日興證券，請問 Katsura 先生。

Katsura from SMBC Nikko Securities. Two questions. The first question, cash flow, excluding Financial Services, you said JPY 1.25 trillion operating cash flow. Investment cash flow, can you please explain as well?

SMBC 日興證券的 Katsura。兩個問題。第一個問題，現金流，不包括金融服務，你說的是1.25萬億日元的運營現金流。投資現金流，你能解釋一下嗎？

Semiconductors' CapEx plan and you are [exiting] break as compared to last year. So maybe the background is, as you have explained. Other than that, if there is key points about the cash flow, please, investment cash flow.

與去年相比，半導體的資本支出計劃和你 [exiting] 中斷。所以也許背景是，正如你所解釋的那樣。除此之外，如果有關於現金流的關鍵點，請投資現金流。

And secondly, related to the operating cash flow, inventory in Q3, Q4, you maintained a high level, this year, the inventory control. How do you control inventory, procurement materials and forecast? What kind of level of inventory do you have in mind? These are my two questions.

其次，與經營現金流相關，Q3、Q4的存貨，你們維持在高水平，今年，存貨控制。您如何控制庫存、採購材料和預測？您想要什麼樣的庫存水平？這是我的兩個問題。

Thank you very much for your questions. Now about cash flow, Hayakawa will be responding.

非常感謝您的提問。現在關於現金流，早川將做出回應。

About the investment cash flow, last fiscal year, investment cash flow, operating cash flow is JPY 400 billion. Cash outflow has increased and the investment cash flow, a bit more than JPY 300 billion increase. Strategic investment with acquisition of Bungie, Inc. increased and also CapEx was also increased, which resulted in an increase in investment cash flow.

關於投資現金流，上一財年，投資現金流、經營現金流為4000億日元。現金流出有所增加，投資現金流增加了 3000 億日元多一點。收購 Bungie, Inc. 的戰略投資增加，CapEx 也增加，導致投資現金流增加。

For this fiscal year, strategic investment, of course, future growth will take opportunity. We are exploring opportunities. On the other hand, in view of the current market environment, as Mr. Totoki said in his presentation, we look at the valuation and the timing. But more recently, we are to be more conservative and cautious. That's all from me.

對於本財年的戰略投資，當然是未來增長的契機。我們正在探索機會。另一方面，鑑於目前的市場環境，就像Totoki先生在他的演講中所說的那樣，我們看估值和時機。但最近，我們要更加保守和謹慎。這都是我的。

About CapEx, as we explained, I&SS CapEx is reflected. And then inventory control by each business segment, there are ways of management.

關於 CapEx，正如我們所解釋的，I&SS CapEx 得到了體現。然後每個業務部門的庫存控制，有管理的方式。

With regards to games, for the year-end sales, there will be increasing inventory in the first half. And toward the end of the year, this will be more normalized.

遊戲方面，對於年終銷售，上半年存貨會有所增加。到年底，這將更加正常化。

And then ET&S, this fiscal year -- or the last fiscal year, the result, there were some concerns, but it ended up that we are able to control the inventory very well. So for this fiscal year, likewise, we are going to have the conservative sales plan and the appropriate level of inventory is to be maintained and controlled and will continue to do so.

然後是 ET&S，這個財政年度——或上個財政年度，結果，有一些擔憂，但最終我們能夠很好地控制庫存。因此，對於本財年，我們同樣將製定保守的銷售計劃，並維持和控制適當的庫存水平，並將繼續這樣做。

I&SS logic and sensor strategic inventory will be reduced from the second quarter onwards. Amount of inventory, the sales size will increase. So end of FY '23, as compared to the end of FY '22, it is going to be higher. However, the turnover month on a forward basis, then it's going to be appropriate level. We are calculating that it is an appropriate profit level. And it's -- we are going to bring it to the appropriate level. That's all from me.

I&SS 邏輯和傳感器戰略庫存將從第二季度開始減少。存貨量大，銷售規模會增加。因此，與 22 財年末相比，23 財年末會更高。然而，在遠期基礎上的周轉月，它將是適當的水平。我們正在計算這是一個合適的利潤水平。它是 - 我們將把它帶到適當的水平。這都是我的。

So we would like to move on to the next question from the Citigroup, Ezawa, please.

所以我們想繼續花旗集團的下一個問題，Ezawa，請。

From Citigroup, Ezawa. So I have two questions. The first one is about OIBDA. You're going to start disclosure. And therefore, this is in comparison to EBITDA. So what is the difference? And therefore, why you are going to start the disclosure of OIBDA and also going for EBITDA and OIBDA? Will there differences or rather a larger gap between the two? And if that is the case, please explain the logic.

來自花旗集團，Ezawa。所以我有兩個問題。第一個是關於 OIBDA。你將開始披露。因此，這是與 EBITDA 相比。那麼區別是什麼呢？因此，為什麼您要開始披露 OIBDA 以及 EBITDA 和 OIBDA？兩者之間會不會有差異或者更大的差距？如果是這樣，請解釋其中的邏輯。

And the second question is about the semiconductor for the new fiscal year operating profit. So there have been the reason for the changes of operating income and, however, increase of the sales and increase of revenue. However, because I think you've listened according to the value of absolute value. And therefore, the sales is JPY 20 billion. However, the absolute value in comparison to others, it's rather small. So is there any reason behind? Those are the two questions.

第二個問題是關於新財年半導體的營業利潤。因此，營業收入的變化是有原因的，但是銷售額和收入增加了。但是，因為我認為你已經聽過根據絕對值的值。因此，銷售額為 200 億日元。但是，相對於其他的絕對值，它是相當小的。那麼背後有什麼原因嗎？這是兩個問題。

Thank you very much for the question. For the first one, for the OIBDA disclosure. So in comparison to EBITDA because it doesn't include outside of the sales and then for the six segments. So outside of the sales, well, because we don't distribute the material and therefore, looking at the segment, OIBDA. So in comparison to -- because it's much similar to the EBITDA and whether the gap is going to increase, that's not going to happen in the future.

非常感謝你的提問。對於第一個，OIBDA 披露。所以與 EBITDA 相比，因為它不包括銷售額之外的六個部分。所以在銷售之外，好吧，因為我們不分發材料，因此，看看這個部分，OIBDA。因此，與 - 因為它與 EBITDA 非常相似以及差距是否會增加，所以未來不會發生這種情況。

So for the time being, for 3 years as an important KPI, the consolidated EBITDA, so [because] the cumulative 3-year figure. So they have been outlined in the 3-year business plan. However, looking at each segments, so therefore, naturally, so I think it is necessary to explain. And therefore, we -- at this timing, we are -- we decided to disclose the OIBDA. And therefore, because this will be an access with the external -- basis of the external communication.

所以暫時，3 年作為一個重要的 KPI，綜合 EBITDA，所以 [因為] 累積 3 年的數字。因此，他們已在 3 年業務計劃中進行了概述。但是，看每個細分市場，so therefore, so therefore, naturally, so 我覺得還是有必要說明一下的。因此，我們 - 在這個時候，我們 - 我們決定披露 OIBDA。因此，因為這將是與外部的訪問——外部通信的基礎。

So talking about I&SS, so with the increase of sales and the impact of the revenue is rather small. So that was a question. However, talking about this point, well, because, of course, there will be an increase of revenue. However -- well, because with the mass production of the new product, there will be more costs required. Therefore, the profitability for FY '23 will go down and therefore, taking into this consideration and into our forecast.

因此，談到 I&SS，隨著銷售額的增加和收入的影響相當小。所以這是一個問題。但是，談到這一點，嗯，因為當然會增加收入。但是——好吧，因為隨著新產品的量產，需要的成本會更多。因此，23 財年的盈利能力將下降，因此，考慮到這一點並納入我們的預測。

We only have a short time left. So the next question will be the last one. Mizuho Securities, Nakane-san, please.

我們只剩下很短的時間了。所以下一個問題將是最後一個問題。瑞穗證券，Nakane-san，有請。

This is Nakane-san from Mizuho Securities. I have two questions. I'd like to understand the assumptions that you're using for this term and the ones that you did not explain. Regarding I&SS, at the end of the fiscal year, the production capacity assumptions and the inventories are going to increase. What is the operations or movements after Q2?

我是瑞穗證券的 Nakane-san。我有兩個問題。我想了解您對這個術語使用的假設以及您沒有解釋的假設。關於 I&SS，在本財年末，產能假設和庫存將增加。 Q2之後的操作或動作是什麼？

And Totoki-san talked about this earlier, you have the mid- to low inventories. Until the last term, the mid- to low was also something that you were going after proactively, and I'm sure that you still have some inventory left. Last term -- at this term, you will be focusing on the high end this term. For the remaining inventory, how about the risk of the valuation? And is that also something that you have already reflected? And is that something that we should not be concerned about?

Totoki-san 早些時候談到了這一點，你有中低庫存。直到上個學期，中低端也是你們主動追求的東西，我相信你們還有一些存貨。上學期——在這個學期，你將專注於這個學期的高端。對於剩餘存貨，估值風險如何？這也是你已經反映出來的嗎？這是我們不應該關心的事情嗎？

Second question is about ET&S. The TV is improving and the R&D costs are going to go up. The TV and audio video and cameras, mobile and others, if we look at these categories, TV is going to go into the black from red. How is it going to improve? And/or how is it going to deteriorate? It could be qualitative if you can.

第二個問題是關於 ET&S。電視在改進，研發成本會上升。電視和音頻視頻和相機、手機和其他，如果我們看看這些類別，電視將從紅色轉為黑色。它將如何改善？和/或它會如何惡化？如果可以的話，它可以是定性的。

Thank you very much for the questions. Regarding I&SS, at the end of the fiscal year, there -- what is the assumption for the production capacity. Regarding this -- one moment please. It's in the handout. For FY '22, in the fourth quarter, average capacity for the facilities would be 133,000 per month and in the -- it will be 160,000 per month in terms of the introduction. And for FY '23 first quarter, 137,000 and then 127,000 what will be a [set-in]. And also focusing on the high-end part is not going to change.

非常感謝您的提問。關於 I&SS，在財政年度結束時，生產能力的假設是什麼。請稍等一下。它在講義中。對於 22 財年，在第四季度，這些設施的平均產能為每月 133,000 台，而在引入方面將為每月 160,000 台。對於 23 財年第一季度，137,000，然後是 127,000，這將是一個[設置]。而且專注於高端部分也不會改變。

Regarding the mid to low inventory valuation reduction risk. As of now, we don't think that we will go to that point where we would have to reduce the valuation.

關於中低存貨估值下降風險。截至目前，我們認為我們不會達到必須降低估值的程度。

Regarding the strategic inventory, the general purpose items can be stably sold. So we don't believe that it would go to that point.

關於戰略庫存，通用項目可以穩定銷售。所以我們不相信它會走到那一步。

Regarding ASP, mid to low, for this term, the situation is going to become severe. We believe that there is a possibility of that. So that's the overall big picture.

關於平均售價，中低，本學期情況將變得嚴峻。我們相信有這種可能性。這就是整體情況。

And also regarding ET&S, in each category, regarding the profits, to talk about this qualitatively, for the digital cameras, in FY '23, the revenue will go up and the profits will slightly go down. And also for TVs, the revenue will go down significantly and the profitability situation will improve. And in the latter half of last year, we struggled. So this term is a conservative sales situation.

還有關於 ET&S，在每個類別中，關於利潤，定性地談論這個，對於數碼相機，在 23 財年，收入將上升，利潤將略有下降。對於電視，收入將大幅下降，盈利狀況將有所改善。去年下半年，我們陷入了困境。所以這個詞是一個保守的銷售情況。

And also -- and for other categories, headphone, the revenue will go down, profits will go up. The high-end, high-value models, added value models is where we're going to focus on. And also for mobile, the revenues will go down and profitability situation will improve. The units will be narrowed down and fixed costs will be -- will go down and we will try to improve profitability. For the different categories, from a qualitative basis, that is what we believe would happen. That's all.

而且 - 對於其他類別，耳機，收入會下降，利潤會上升。高端，高價值模型，附加值模型是我們要關注的地方。對於移動設備，收入將下降，盈利狀況將改善。單位將縮小，固定成本將下降，我們將努力提高盈利能力。對於不同的類別，從定性的角度來看，這就是我們認為會發生的情況。就這樣。

With this, we would like to end the financial result announcement for the Sony Group. Thank you very much.

至此，我們想結束索尼集團的財務業績公佈。非常感謝。

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

[現場通話中的口譯員用英語對這份成績單進行了陳述。]