豐田汽車 (TM) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you very much for coming today. We would now like to start the financial results meeting for the year ended March 2023. My name is Ellie from Public Relations, and I will be the MC for today's meeting.

女士們，先生們，非常感謝你們今天的到來。我們現在要開始召開截至 2023 年 3 月的年度財務業績會議。我是公共關係部的 Ellie，我將擔任今天會議的主持人。

Before we announce the financial results, Koji Sato, our President, has a few words to mention. Mr. Sato, please.

在我們公佈財務業績之前，我們的總裁 Koji Sato 有幾句話要提一下。佐藤先生，請。

I am Koji Sato. Before announcing our financial results, I would like to explain the current situation regarding the Daihatsu procedure realities issue, which was announced on April 28. Since the announcement, we have had an independent third-party review entity conductor retest of those vehicles concerned. It has once again been confirmed that the vehicles concerned present no quality or safety issues. Based on the results of the retest and as to consulting with the related authorities, we have resumed shipments of the Toyota brand vehicles to Malaysia, Mexico and Ecuador. As for Thailand and Middle Eastern countries, we will continue to consult with the related authorities.

我是佐藤浩司。在公佈我們的財務業績之前，我想解釋一下關於 4 月 28 日公佈的大發程序現實問題的現狀。自公佈以來，我們已經讓獨立的第三方審查實體對這些相關車輛進行了重新測試。經再次確認，涉事車輛不存在質量和安全問題。根據複檢結果，經與有關部門協商後，我們已恢復豐田品牌汽車對馬來西亞、墨西哥和厄瓜多爾的發貨。至於泰國和中東國家，我們會繼續與有關部門進行磋商。

The day before yesterday, Chairman, Toyoda visited Thailand to explain to our customers and stakeholders what had happened and to convey to them that the vehicles were safe and that our entire corporate group was committed to working to prevent this type of misconduct from ever happening again. Daihatsu and Toyota are confirming the fact from various perspectives to prevent a recurrence. Toyota is a company in which all members always stop when a problem occurs. It pursues a root cause of problems by going and seeing the location of process where the problem exists, mix improvements and works to prevent recurrences. We will continue to investigate the root cause, believing that it is important to change the environment in which such misconduct occurs. We will keep you informed as and when progress is made.

前天，豐田章男董事長訪問泰國，向我們的客戶和利益相關者解釋發生的事情，並向他們傳達車輛是安全的，我們整個企業集團都致力於防止此類不當行為再次發生.大發和豐田正在從多個角度確認事實，以防止事件再次發生。豐田是一家所有成員在出現問題時總是停下來的公司。它通過查看存在問題的過程位置來尋找問題的根本原因，混合改進並努力防止再次發生。我們將繼續調查根本原因，認為改變此類不當行為發生的環境非常重要。當取得進展時，我們會及時通知您。

Thank you. Now we would like to call upon Yoichi Miyazaki, the Executive Vice President and Chief Financial Officer, to explain about the financial results.

謝謝。現在我們想請執行副總裁兼首席財務官宮崎陽一解釋財務結果。

I'm Miyazaki, the CFO, and this is the first time I take the coding, this title, I hope you bear with me. Before sharing you the financial results, we would like to express our heart felt appreciation to our customers around the world who choose as well as our shareholders, our dealers and suppliers and all other stakeholders who support us in daily activity. Thank you so very kindly.

我是CFO宮崎駿，這是我第一次接編碼，這個頭銜，希望大家多多包涵。在與您分享財務結果之前，我們想對選擇我們的全球客戶以及我們的股東、我們的經銷商和供應商以及支持我們日常活動的所有其他利益相關者表示衷心的感謝。非常感謝你。

So let me provide a summary of the financial performance of the fiscal year ending March 2023. While we experienced production constraints due to tight semiconductor supplies, natural disasters and COVID-19, et cetera, dealers and suppliers as well as production sites have all worked hard in order to deliver as many cars as possible to our customers. In spite of our actual operating income decreasing compared to the last fiscal year due to the impact of such things as soaring material prices, our results exceeded the previous forecast due to our continuous efforts to improve our profit structure.

因此，讓我總結一下截至 2023 年 3 月的財政年度的財務業績。雖然我們因半導體供應緊張、自然災害和 COVID-19 等而經歷了生產限制，但經銷商和供應商以及生產基地都在努力工作為了向我們的客戶交付盡可能多的汽車而努力。儘管受材料價格上漲等因素的影響，實際營業收入較上一財年有所下降，但由於我們不斷努力改善盈利結構，業績超出了此前的預期。

For the forecast for the next fiscal year, we expect production volume of 10.1 million and sales volume increased in all regions as a result of such things as improvements in semiconductor supply and the efforts of production sites. We will continue to both advance our activities towards carbon neutrality and improve our product structure. Also without slowing down our growth investments, we will promote activities to change the future of our cars.

對於下一財年的預測，由於半導體供應的改善和生產基地的努力，我們預計所有地區的產量將達到 1,010 萬顆，銷量將有所增長。我們將繼續推進我們的碳中和活動並改善我們的產品結構。此外，在不減緩我們的增長投資的情況下，我們將促進改變我們汽車未來的活動。

In terms of return to shareholders, in order to reward our long-term shareholders, we have a new dividend policy to increase dividends stably and continuously. We have placed more focus on dividends for our shareholder returns, and the year-end dividend will be JPY 35 per share, which is an increase of JPY 7 compared to the previous fiscal year. The total dividend will be JPY 60 per share, which is an increase of JPY 8 from the previous fiscal year. As for the share repurchases under our policy to conduct flexibly taking into account our share price levels, et cetera for our year-end repurchases, we will proceed with a maximum of JPY 150 billion, which is equivalent to our interim repurchases.

在回報股東方面，為了回報我們的長期股東，我們有新的股息政策，穩定持續地增加股息。我們更加註重股東回報的股息，年終股息為每股 35 日元，比上一財年增加 7 日元。總股息將為每股 60 日元，比上一財年增加 8 日元。年末回購等根據股價水平靈活實施的股份回購，將以相當於期中回購的最高1,500億日元進行。

Now then let me explain the summary of our performances for the fiscal year ended March 2023. Consolidated vehicle sales for the period was at 8,822,000 units, which was 107.2% of such sales over the previous fiscal year. Toyota and Lexus brand vehicle sales was at 9,610,000 units, which was 101% of such sales in the previous fiscal year. So as for the vehicles sales by region, we saw an increase in all regions compared to the previous fiscal year. Also, the ratio of electrified vehicles became 29.6%. Consolidated financial results were sales revenue of JPY 37,154.2 billion, operating income of JPY 2,725 billion. Income before income taxes JPY 3,668.7 billion and net income of JPY 2,451.3 billion.

現在讓我解釋一下我們截至 2023 年 3 月的財政年度的業績摘要。該期間的綜合汽車銷量為 8,822,000 輛，佔上一財政年度銷量的 107.2%。豐田和雷克薩斯品牌汽車銷量為 9,610,000 輛，是上一財年此類銷量的 101%。因此，就按地區劃分的汽車銷量而言，與上一財年相比，我們看到所有地區都有所增長。此外，電動汽車的比例達到 29.6%。合併財務業績為銷售收入 371,542 億日元，營業收入 27,250 億日元。所得稅前收入為 36,687 億日元，淨收入為 24,513 億日元。

Now I'd like to explain the factors which impacted operating income year-on-year. First, the effect of foreign exchange rates increased operating income by JPY 1,280 billion. Second, cost reduction, of course, decreased operating income by JPY 1,290 billion, the JPY 1,545 billion impact of soaring material prices includes JPY 500 billion for activities aimed at strengthening the structure of the entire supply chain in addition to fluctuations in market conditions for materials. Third, marketing efforts increased operating income by JPY 680 billion. Fourth, increase in expenses decreased operating income by JPY 525 billion. Lastly, we also incurred a negative impact of JPY 415.6 billion largely due to the swap valuation losses and the cost to terminate our production in Russia. As a result, excluding the overall impact of foreign exchange rates, swap valuation gains and losses and other factors, operating income decreased by JPY 1,135 billion year-on-year.

現在我想解釋一下影響營業收入同比的因素。首先，匯率的影響使營業收入增加了 12,800 億日元。第二，降低成本，當然，營業收入減少了 12,900 億日元，材料價格飆升的 15,450 億日元影響包括 5,000 億日元用於旨在加強整個供應鏈結構的活動以及材料市場條件的波動.第三，營銷工作使營業收入增加了 6800 億日元。第四，費用增加使營業收入減少了 5250 億日元。最後，我們還遭受了 4156 億日元的負面影響，這主要是由於掉期估值損失和終止在俄羅斯生產的成本。因此，剔除匯率、掉期估值損益等因素的綜合影響，營業收入同比減少11350億日元。

Now let me explain the operating income for each region. Japan increased by JPY 477 billion year-on-year due to the effects of foreign exchange rates despite the negative effect from soaring material prices. North America decreased by JPY 457.8 billion year-on-year due to soaring material prices.

現在讓我解釋一下每個地區的營業收入。儘管受到材料價格飆升的負面影響，但由於匯率的影響，日本同比增加了 4770 億日元。由於材料價格飆升，北美同比減少 4578 億日元。

Going forward, Europe also decreased by JPY 115 billion year-on-year due to soaring material prices and the cost to terminate our production in Russia despite the positive effect from our marketing efforts. Asia increased by JPY 55.7 billion year-on-year due to the effect of foreign exchange rates and increase in sales volume. Other regions increased by JPY 36.7 billion year-on-year.

展望未來，儘管我們的營銷努力產生了積極影響，但由於材料價格飆升和終止我們在俄羅斯生產的成本，歐洲也同比減少了 1150 億日元。亞洲受匯率影響，銷量增加，同比增長557億日元。其他地區同比增加367億日元。

In the next slide, let me explain about our business in China as well as our financial service business. As for our business in China, while the operating income of consolidated subsidiaries decreased year-on-year, mainly due to the impact of fluctuations in foreign exchange rates and a decrease in sales volume, our share of profit of investments accounted for using the equity method increased year-on-year, mainly due to cost reduction efforts. Regarding the Financial Services business, operating income for the fiscal year increased year-on-year due to the impact of fluctuations in foreign exchange rates.

在下一張幻燈片中，讓我解釋一下我們在中國的業務以及我們的金融服務業務。中國業務方面，合併子公司營業收入同比下降，主要是受匯率波動和銷量下降的影響，我們分享的投資利潤佔權益方法同比增加，主要是由於降低成本的努力。金融服務業務方面，受匯率波動影響，本財年營業收入同比增長。

Next, I'd like to explain about our return to shareholders. In order to reward our long-term shareholders, we have eliminated our conventional guideline of consolidated dividend payout ratio of 30%. Instead, we have revised our policy to increase dividends steadily and continuously. So as we have more focus on dividends. The year-end dividend for the current fiscal year will be JPY 35 per share, which is an increase of JPY 7 compared to the previous fiscal year. Together with the interim dividend of JPY 25, the total full year dividends for this fiscal year are JPY 60 per share, which is an increase of JPY 8 from the previous fiscal year.

接下來，我想解釋一下我們對股東的回報。為了回報我們的長期股東，我們取消了 30% 的綜合股息支付率的傳統指導方針。相反，我們修改了我們的政策，以穩定和持續地增加股息。因此，隨著我們更加關注股息。本財年的年終股息為每股35日元，比上一財年增加7日元。加上25日元的中期股息，本財年的全年股息總額為每股60日元，比上一財年增加8日元。

Previously, we have conducted share repurchases based on factors such as investment in growth, dividend levels and cash on hand. However, we have revised our policy to conduct flexibly taking into account our share price levels, et cetera. For year-end repurchases, considering the current share price level, we set aside JPY 150 billion as the maximum limit of year-end repurchase, which is equivalent to our interim.

此前，我們根據增長投資、股息水平和手頭現金等因素進行了股票回購。但是，我們修改了我們的政策，以靈活地考慮我們的股價水平等因素。年終回購方面，考慮到目前的股價水平，我們預留1500億日元作為年終回購的最高限額，相當於我們中期。

Next, I will explain the forecast for the fiscal year ended March 31, 2024. First of all, I will explain the production volume forecast for the Toyota and Lexus brands. We expect 10.1 million units, which is 110.6% of the previous fiscal year. The reason behind the increase in production forecast for the previous fiscal year is as follows. We have been working on examination of alternatives regarding them in light of supply risks in the future as well as on promoting improvements aimed at improving operating rates at factories. Since March, we have been able to continue high level production while prioritizing safety and quality. At sales sites in each region, the production volume still cannot keep up with customer demand. So we will continue to promote improvements together with our suppliers in order to further increase the production volume.

接下來，我將解釋截至2024年3月31日的財政年度的預測。首先，我將解釋豐田和雷克薩斯品牌的產量預測。我們預計為 1010 萬台，為上一財年的 110.6%。上一財年產量預測增加的原因如下。鑑於未來的供應風險，我們一直致力於研究替代方案，並推動旨在提高工廠開工率的改進。自 3 月以來，我們能夠在將安全和質量放在首位的同時繼續保持高水平生產。在各個地區的銷售點，生產量仍然跟不上客戶的需求。因此，我們將繼續與我們的供應商一起推動改進，以進一步提高產量。

We expect consolidated vehicle sales of 9,600,000 units, which is 108.8% compared to the previous fiscal year. As the semiconductor supply and demand has improved, we expect growth in all regions. As for Toyota and Lexus brand vehicle sales, we expect 10,400,000 units, which is 108.2% compared to the previous fiscal year. We expect electrified vehicle sales of 3,843,000 units, which is 134.9% compared to the previous fiscal year, and the electrified vehicles ratio is expected to be 37.0%.

我們預計綜合汽車銷量為 9,600,000 輛，與上一財年相比增長 108.8%。隨著半導體供需的改善，我們預計所有地區都會增長。至於豐田和雷克薩斯品牌汽車銷量，我們預計為 10,400,000 輛，與上一財年相比增長 108.2%。我們預計電動汽車銷量為 3,843,000 輛，比上一財年增長 134.9%，電動汽車比例預計為 37.0%。

Next, I will explain the forecast for the fiscal year ending March 31, 2024. We have adopted the full year foreign exchange rate assumption of JPY 125 per U.S. dollar and JPY 135 per euro. Based on this, our forecast for full year consolidated financial performance are: sales revenue of JPY 38 trillion, operating income of JPY 3 trillion income before income taxes of JPY 3,690 billion and net income of JPY 2,580 billion.

接下來，我將解釋截至 2024 年 3 月 31 日的財政年度的預測。我們採用了 1 美元兌 125 日元和 1 歐元兌 135 日元的全年匯率假設。據此，我們對全年綜合財務業績的預測為：銷售收入38萬億日元，營業收入3萬億日元，所得稅前收入3.69萬億日元，淨利潤2.58萬億日元。

Next, I would like to explain the factors that may impact operating income. First, the effects of foreign exchange rates will decrease the operating income by JPY 875 billion. Second, the cost reduction efforts are expected to increase profit by JPY 360 billion, while the impact of decreasing material is expected to be JPY 510 billion, resulting in a total decrease JPY 150 billion. Third, the effects of marketing activities will increase the operating income by JPY 1,285 billion due to an increase in sales volume and an improvement in product mix, led by improved semiconductor supply and demand, while other expenses are expected to decrease by JPY 260 billion.

接下來，我想解釋一下可能影響營業收入的因素。首先，匯率的影響將使營業收入減少 8750 億日元。其次，降低成本的努力預計將增加利潤 3600 億日元，而減少材料的影響預計將達到 5100 億日元，導致總計減少 1500 億日元。第三，由於半導體供需改善導致銷量增加和產品結構改善，營銷活動的影響將使營業收入增加 12,850 億日元，而其他費用預計將減少 2,600 億日元。

Compared with the pre-closed fiscal year ended March 31, 2020, we became able to offset the impact of soaring material cost to GPS cost reductions and marketing efforts as a result of our long-standing product centered and region centered approach. We have also established a foundation for steadily increasing growth investments. We live in an era where there is no right answer and the future is uncertain. So we will always keep our antennas up and carefully manage risks in preparation for changes in the business environment.

與截至 2020 年 3 月 31 日的預收財政年度相比，由於我們長期以產品為中心和以區域為中心的方法，我們能夠抵消材料成本飆升對 GPS 成本降低和營銷工作的影響。我們還為穩步增加增長投資奠定了基礎。我們生活在一個沒有正確答案、未來充滿不確定性的時代。因此，我們將時刻保持警惕，謹慎管理風險，為商業環境的變化做好準備。

This brings us to the end of our presentation. Thank you very much.

這使我們的演示結束。非常感謝。

Thank you. We'd now like to ask our President, Koji Sato, to take the floor again.

謝謝。我們現在想再次請我們的總裁 Koji Sato 發言。

Once again, I am Koji Sato. As Miyazaki-san just mentioned, despite the severe business environment, including soaring material prices, we were able to secure an operating profit of JPY 2.7 trillion in the previous fiscal year. Our new management team assumed the reins on April 1. However, the financial results figures for the previous fiscal year were based on the 14 years of former President, Akio Toyoda's efforts, making me once again keenly aware that our change in management took place while Toyota was being managed at top speed. As such, our new management team will be able to focus on strategic initiatives in growth areas based on this current foundation. When Chairman, Toyoda took office as President, he said growth is about being able to continuously change ourselves in response to ever-changing needs of customers and society. And I believe that his 14 years as President embodied exactly that.

再一次，我是Koji Sato。正如宮崎先生剛才提到的，儘管包括原材料價格飆昇在內的嚴峻商業環境，我們仍能夠在上一財年確保營業利潤達到 2.7 萬億日元。我們的新管理層於4月1日上任。然而，上一財年的財務業績數據是基於前總裁豐田章男14年的努力，讓我再次敏銳地意識到，我們的管理層變動發生在豐田正在以最快的速度進行管理。因此，我們的新管理團隊將能夠在此基礎上專注於增長領域的戰略舉措。豐田章男董事長就任社長時曾說過，成長就是能夠不斷改變自己，以應對客戶和社會不斷變化的需求。我相信他擔任總統的 14 年恰恰體現了這一點。

Now that he is Chairman, he is in a position to support our new management team, and we will implement a new form of team management with the Chairman and President working simultaneously and according to an optimal division of rules at any given time. Our team will take advantage of this environment to promote speedy management.

現在他是董事長，他可以支持我們新的管理團隊，我們將實行董事長和總裁同時工作、隨時按照最佳分工的新團隊管理形式。我們的團隊將利用這種環境來促進快速管理。

With that in mind, I would like to once again talk about our future management. I believe that the growth Toyota should aim for going forward is growth that creates a future in which the automobile industry transforms itself into a mobility industry through enhancing its added value as it works in cooperation with many other industries. The foundation for this is carbon neutrality. Toyota aims to reduce new vehicle CO2 emissions by more than 50% globally by 2035.

考慮到這一點，我想再次談談我們未來的管理。我認為，豐田未來的增長目標是創造一個未來的增長，在這個未來中，汽車行業通過與許多其他行業的合作提高其附加值，從而將自己轉變為移動行業。其基礎是碳中和。豐田的目標是到 2035 年將全球新車的二氧化碳排放量減少 50% 以上。

To achieve this, we will continue to provide regionally optimal solutions at an accelerated pace without wavering from our multi-pathway approach. When it comes to battery electric vehicles or BEVs, which are especially rapidly progressing, we have set a pace of selling 1.5 million units by 2026 as our base volume, and we plan to launch 10 models ranging from luxury vehicles to compacts and commercial vehicles, mainly in the United States and China.

為實現這一目標，我們將繼續加快提供區域最佳解決方案的步伐，同時保持我們的多路徑方法不變。對於發展尤其迅速的純電動汽車或 BEV，我們設定了到 2026 年銷售 150 萬輛的速度作為我們的基礎銷量，我們計劃推出從豪華車到緊湊型車和商用車的 10 種車型，主要在美國和中國。

Regarding the battery supply, we will seek to speedily secure the necessary volume by increasing our in-house production capacity and collaborating with our partners. Our new model scheduled for launch in 2026 will be built on 3 new platforms, the body and chassis, the electronic platform and the software platform. They will all be renewed as we aim to achieve mobility by the way of renewed vehicle packaging with a rational structure that is unique to BEVs. From now on, with a new dedicated organization, BEV factory will lead the initiatives and the initiatives will be accelerated. We would like to present concept for vehicles of such at the Japan Mobility Show this autumn. At the same time, as our BEV initiatives, we will also accelerate our efforts to realize the hydrogen society.

在電池供應方面，我們將通過提高內部生產能力和與合作夥伴的合作，尋求迅速確保必要的數量。我們計劃於 2026 年推出的新車型將基於 3 個新平台構建，即車身和底盤、電子平台和軟件平台。它們都將被更新，因為我們的目標是通過更新具有 BEV 獨有的合理結構的車輛包裝來實現機動性。從現在開始，在一個新的專門組織下，BEV 工廠將領導這些舉措，並將加快這些舉措。我們想在今年秋天的日本機動車展上展示此類車輛的概念。同時，作為我們純電動汽車的舉措，我們也將加快實現氫能社會的步伐。

We will advance our projects in the commercial domain, especially in Europe and China where hydrogen consumption is particularly high centered on fuel cell electric vehicles. Furthermore, we will focus on the use of hydrogen energy for personal mobility and on the cycle of producing, transporting and using hydrogen and we will conduct activities for the development of social infrastructure, including through social implementation in Thailand.

我們將推進我們在商業領域的項目，特別是在以燃料電池電動汽車為中心的氫消耗量特別高的歐洲和中國。此外，我們將重點關注氫能在個人交通中的應用以及氫的生產、運輸和使用循環，我們將開展社會基礎設施發展活動，包括通過在泰國的社會實施。

To actively promote these initiatives, we will also increase our immediate earning power especially in Asia and emerging markets, which are expected to grow 30% or more by 2030. We will strengthen our earnings base by focusing on hybrid electric vehicles to capture market growth. To transform automobiles into our mobility industry, we will further increase our current approximately JPY 3 trillion in R&D expenditures and capital investment while increasing the ratio of future investment to achieve sustainable growth.

為積極推動這些舉措，我們還將提高我們的即時盈利能力，尤其是在亞洲和新興市場，預計到 2030 年這些市場將增長 30% 或更多。我們將通過專注於混合動力電動汽車來鞏固我們的盈利基礎，以抓住市場增長。為了將汽車轉變為我們的移動產業，我們將進一步增加目前約 3 萬億日元的研發支出和資本投資，同時提高未來投資的比例，以實現可持續增長。

Thank you for your kind attention.

感謝您的關注。

Next, we'll have a question-and-answer session. So please do wait for a few seconds while we set up the stage. Thank you. Now, we would like to start the Q&A session. Could we ask the respondents to the questions to please take the stage. Let me introduce the members on the stage, President, Koji Sato; Executive Vice President, Chief Technology Officer, Hiroki Nakajima; Executive Vice President, Chief Financial Officer, Yoichi Miyazaki; Chief Communication Officer, Jun Nagata; Chief Officer, Accounting Group, Masahiro Yamamoto. Please take your seat on the stage.

接下來，我們將進行問答環節。因此，在我們搭建舞台時，請稍等片刻。謝謝。現在，我們要開始問答環節。我們能否向受訪者提問，請上台。讓我介紹一下舞台上的成員，總裁Koji Sato；執行副總裁兼首席技術官 Hiroki Nakajima； Yoichi Miyazaki 執行副總裁兼首席財務官；首席傳播官 Jun Nagata；會計組首席執行長山本雅博。請在舞台上就座。

Now then we are ready to take questions. If you have any questions, please raise your hand to indicate that you'll be asking a question and wait for the microphone. We'd like to give the opportunity to ask many people as possible, so we would like to restrict your questions to 2 questions each please. The third person -- the person in third row from the front, please.

現在我們準備好接受提問了。如果您有任何問題，請舉手錶示您將提問並等待麥克風。我們希望有機會詢問盡可能多的人，因此我們希望將您的問題限制為每個問題 2 個問題。第三個人——請從前排第三排的人。

I'm from Yomiuri. My name is Yamauchi. I have a question to President Sato. The first question, what -- how would you sum up the overall financial results? What were good points? What are the points which you highly evaluate or points that you think over below standard or not -- I'm sorry satisfactory? How do you think about this as President?

我來自讀賣新聞。我叫山內。我有一個問題要問佐藤社長。第一個問題，你如何總結整體財務結果？什麼是優點？有哪些是您高度評價的點，或者您認為達不到標準的點——對不起，滿意嗎？作為總統，您如何看待這件事？

Second question is about the profit or earnings structure. When you look at the breakdown of the operating profit, the external environment such as ForEx and the soaring materials prices highly affected your results. And so how about the growth in reduction of costs, et cetera, I think which did have an impact on the results. So as President, how do you intend to evolve or increase the basic earnings power of the company?

第二個問題是關於利潤或收益結構。當您查看營業利潤的細目時，ForEx 和飆升的材料價格等外部環境對您的結果產生了很大影響。那麼，成本降低等方面的增長如何，我認為這確實對結果產生了影響。那麼作為總裁，您打算如何發展或提高公司的基本盈利能力？

Thank you for that question. The first question had to do with my summing up or impression of the financial results. So when we look at the short-term financial results, we were able to obtain an operating income of JPY 2.7 trillion, which I believe, in terms of our earning power, we were able to indicate earnings power that exceeds our part of last year. And I'm sure you realize that the impact of ForEx and also the soaring materials prices over actually improved through various efforts to generate operating profit -- a good operating profit in the end.

謝謝你提出這個問題。第一個問題與我對財務結果的總結或印像有關。因此，當我們看短期財務業績時，我們能夠獲得 2.7 萬億日元的營業收入，我認為，就我們的盈利能力而言，我們能夠表明我們的盈利能力超過了去年的部分.而且我相信您已經意識到，通過各種努力產生營業利潤，ForEx 的影響以及材料價格飆昇實際上得到了改善 - 最終獲得了良好的營業利潤。

So manufacturing cars and delivering them to customers was a very difficult endeavor this year. However, I think the financial results indicate that in that process, there were various ingenuities and various devices that we were able to endeavor due to these difficulties and that there are many factors included in the financial results, which indicate our ability to strengthen our financial progress.

因此，今年製造汽車並將其交付給客戶是一項非常困難的工作。但是，我認為財務結果表明，在那個過程中，由於這些困難，我們能夠嘗試各種獨創性和各種設備，並且財務結果中包含許多因素，這表明我們有能力加強我們的財務進步。

Also, the -- for example, the production plan fluctuation was very large, but especially the suppliers responded so flexibly to them and also the members involved in manufacturing internally and also their efforts also very important. And also in order to meet the customers' needs, providing smiles to customers through engineering various production improvement, et cetera. I think all of these efforts have led to the financial results. So in the short run, despite the difficulties, I think that there's still, there was still room much more improvement and such improvement efforts have been launched. So I think that was the financial results indicated.

另外，比如生產計劃的波動非常大，但尤其是供應商對他們的反應非常靈活，還有內部參與製造的成員，他們的努力也非常重要。並且為了滿足客戶的需求，通過各種生產改進工程等為客戶提供微笑。我認為所有這些努力都帶來了財務成果。所以短期來看，雖然困難重重，但我覺得還是有，還有很大的提升空間，已經展開了這樣的提升工作。所以我認為這是所顯示的財務結果。

But in the long run, the economic environment has long been deflationary for many, many years. And against that backdrop, we are being involved in manufacturing centered around cars and around our products. And so when you -- if you look at things from a span of 10 to 20 years, and not only domestically, but in the United States, for example, inclusive of incentive payment, we were able to increase the marketing point of our products.

但從長遠來看，經濟環境早已通縮了很多很多年。在這種背景下，我們正在參與以汽車和我們的產品為中心的製造。因此，當你 - 如果你看一下 10 到 20 年的時間跨度，不僅在國內，而且在美國，例如，包括獎勵金，我們能夠增加我們產品的營銷點.

So in the end, we will not make automobiles a commodity. We must provide a good value-added, which develop a strong business that is appreciated by customers and such efforts have been made over these many years, which culminated in such good results despite the very demanding economic conditions and despite the very difficult supply constraints that we had, we were able to create a corporate structure, which could meet those adversities.

所以最終，我們不會讓汽車成為商品。我們必須提供良好的附加值，從而發展出受到客戶讚賞的強大業務，這些年來我們一直在努力，儘管經濟條件非常苛刻，供應限制非常困難，但最終取得瞭如此好的結果我們曾經，我們能夠創建一個可以應對這些逆境的公司結構。

So in the short term and the long term, I believe that the financial results do indicate that we have been able to reinforce the corporate fiber through our years of efforts. As for the profit structure -- this, I think, over a lot of -- what I said in relation to the first question, because we will manage our operations centered around products, what we must do, first and foremost, is to develop good quality car and deliver them to the customers. And for supply issues, we are seeing improvements in supply constraints. And as I was mentioned earlier, so we have set some vehicle sales forecast, which must be produced, and also, we will improve the appeal and attractiveness of our products to generate higher profitability. So these are the basics, but it's very important to return to these basics.

因此，從短期和長期來看，我相信財務結果確實表明我們已經能夠通過多年的努力加強企業纖維。至於利潤結構——我認為，在很多方面——我在第一個問題中所說的，因為我們將以產品為中心來管理我們的運營，我們首先要做的是發展優質的汽車，並將它們交付給客戶。對於供應問題，我們看到供應限制有所改善。正如我之前提到的，我們已經設定了一些必須生產的汽車銷售預測，而且我們將提高我們產品的吸引力和吸引力，以產生更高的盈利能力。所以這些是基礎，但回到這些基礎非常重要。

And by so doing the ForEx or soaring material prices, which are, of course, variables, we can create a good resistivity against them. Also, on a global scale, we run a global business. We are a company that runs a global business. So stabilizing the profit structure requires not focusing on a specific geography, but to be able to create a corporate foundation that would enable us to generate profit in all regions and areas. So against various risks, we must flexibly grapple with good management in the regions so as to establish a very stable profit structure. And I think that would be very important in creating a corporate management that is resistant to external factors and we must also create a strong global product portfolio. And by doing so, we believe that we can strengthen our financial base.

通過這樣做，ForEx 或飆升的材料價格，當然，這些都是變量，我們可以對它們產生良好的抵抗力。此外，在全球範圍內，我們經營全球業務。我們是一家經營全球業務的公司。所以穩定利潤結構，不是要在一個特定的地域上做文章，而是要能夠在所有的地區、所有的領域，建立一個能夠產生利潤的企業基礎。所以面對各種風險，我們要靈活應對，做好區域管理，建立一個非常穩定的盈利結構。我認為這對於創建能夠抵抗外部因素的企業管理非常重要，我們還必須創建強大的全球產品組合。通過這樣做，我們相信我們可以加強我們的財務基礎。

Now let us take the next question. The person in the third row from the front.

現在讓我們來看下一個問題。前排第三排的人。

My name is Hiroaka from Newspeak. This year, if there is no part supply constraints, I believe the production should go up. But in the case of Toyota, they -- you have always been focusing on producing in Japan. Mr. Sato, what is your view on domestic production? If -- is it possible that you will recover the 3 million mark production. If there are more electrified vehicles, I believe, the parts use will be different. So what is your communication -- how is your communication with the suppliers?

我叫 Hiroaka，來自新話。今年，如果沒有零件供應限制，我相信產量應該會上升。但就豐田而言，他們——你一直專注於在日本生產。佐藤先生，您對國產的看法是什麼？如果——您是否有可能恢復 300 萬馬克的產量。如果有更多的電動車，我相信零件的使用會有所不同。那麼您的溝通方式是什麼——您與供應商的溝通方式如何？

Second, how to make profits and how to make sure that your products do become commodities are important. So you have many profitable vehicles, and that is the source of competitiveness. But at the same time, this and other models, including all models, are you trying to make profits for all models?

第二，如何盈利，如何保證你的產品真正成為商品，這很重要。所以你有很多賺錢的工具，這就是競爭力的來源。但是同時，這個和其他的模型，包括所有的模型，你是不是要讓所有的模型都盈利？

So your first question was about domestic production. For TMC, domestic production is the starting point in protecting manufacturing in Japan. So that positioning, we will not waiver. And we will always consider how to protect manufacturing in Japan. So with electrification, the parts use will change and including transactions with our suppliers, what is my forecast, I believe, was your second question.

所以你的第一個問題是關於國內生產的。對於TMC來說，國內生產是保護日本製造的起點。所以那個定位，我們不會放棄。我們會一直考慮如何保護日本的製造業。因此，隨著電氣化，零件的使用將會發生變化，包括與我們供應商的交易，我的預測是什麼，我相信，這是你的第二個問題。

With electrification, of course, the parts use will be difference. But on the other hand, the supply chain is not just part of the business. Each party has its own strength and we respect each other as partners. And with that stands, we do business with them in vehicle manufacturing. So each supplier has their own strength. And if you look at each piece of technology, even if the parts change, there are some suppliers who have advantages in specific areas. So we will partner with them and communicate then what kind of vehicles we want to produce. We will communicate that earlier than before, and we would like to create a business where we can capitalize on each other's strength gradually.

當然，隨著電氣化，零部件的使用會有所不同。但另一方面，供應鏈不僅僅是業務的一部分。每一方都有自己的優勢，我們作為合作夥伴相互尊重。有了這個立場，我們就可以在汽車製造方面與他們開展業務。所以每個供應商都有自己的實力。而且如果你看每一項技術，即使零件變了，也有一些供應商在特定領域有優勢。所以我們將與他們合作，然後溝通我們想要生產什麼樣的車輛。我們會比以前更早地傳達這一點，我們希望創建一個可以逐漸利用彼此優勢的業務。

Your next question was what should we do to make sure that vehicles do not become commodities. As you mentioned, hybrid technology is one of our strengths. And as I mentioned in my presentation, one of the growth areas is emerging countries. In these countries, CO2 reduction is necessary and at the same time, our demand is expected to grow. So with hybrid, securing a profit base is necessary, and we will have to be close to the local community to make ever-better cars. On the other hand, we take a multi-pathway approach. That means we do not specialize in specific areas. We look at the characteristics of each area or geographic area, and we provide our products that are more suitable for that region.

你的下一個問題是我們應該怎麼做才能確保車輛不會成為商品。正如您提到的，混合技術是我們的優勢之一。正如我在演講中提到的，增長領域之一是新興國家。在這些國家，減少二氧化碳排放是必要的，與此同時，我們的需求預計會增長。因此，對於混合動力車來說，確保利潤基礎是必要的，我們必須貼近當地社區才能製造出更好的汽車。另一方面，我們採取多途徑方法。這意味著我們不專注於特定領域。我們著眼於每個地區或地理區域的特點，並提供更適合該地區的產品。

Not only hybrids, but in all vehicles, we need to provide vehicles that is very Toyota-like. We are trying to look at how we can provide BEV and various vehicles that are very -- car manufacturer like. So it's not just the powertrain changes. So we are going to focus on this as well. And the purpose of establishing the new organization of the BEV factory is that and we want to create appealing battery cars as well.

不僅是混合動力車，在所有車輛中，我們都需要提供非常像豐田的車輛。我們正在嘗試研究如何提供非常像汽車製造商的 BEV 和各種車輛。所以這不僅僅是動力總成的變化。所以我們也將關注這一點。建立BEV工廠新組織的目的是，我們也想創造有吸引力的電池汽車。

One additional point. In domestic production, not only volume, but you're trying to make a profit through various supply chains, right? So we're not just looking at TMC alone. We have suppliers. So with the suppliers, so we want to change the characteristics of the vehicles. In the past, the hardware accounted for the majority of the value of the vehicle, that was in the past. But now we have software and also post marketing update and customization is possible. So we want to make sure that the vehicles meets the customers' events more. It's not just the car manufacturers that should be making efforts. We have to work with many suppliers. And capitalize upon our advantages so that we can transform mobility.

加一分。在國內生產中，不僅是數量，而且還試圖通過各種供應鏈獲利，對嗎？因此，我們不僅僅關注 TMC。我們有供應商。所以對於供應商，我們想要改變車輛的特性。過去，硬件佔整車價值的絕大部分，那是過去。但現在我們有了軟件，也可以進行後期營銷更新和定制。所以我們要確保車輛更多地滿足客戶的活動。不僅僅是汽車製造商應該做出努力。我們必須與許多供應商合作。並利用我們的優勢來改變流動性。

Next question, and the person at the very front.

下一個問題，最前面的人。

I am Hans from Automotive News. I have two question. One is about production and one is about the profit structure for EVs. About production, it seems that you are aiming for maybe a record production in the current fiscal year. Is that correct? And how do you expect to get there? Is the chip crisis then seeing an end? Do you have some kind of new approach to securing enough chips? Or is it naturally coming to an end? How do you get this new production to a new record level?

我是《汽車新聞》的漢斯。我有兩個問題。一個是關於生產，一個是關於電動汽車的利潤結構。關於生產，您的目標似乎是在本財政年度創紀錄的生產。那是對的嗎？您希望如何到達那裡？芯片危機是否即將結束？您是否有某種新方法來確保獲得足夠的籌碼？還是自然就結束了？您如何使這部新作品達到新的記錄水平？

The second question is about the BEV profit structure after 2026. Right now, you have an operating profit margin around 7%. But in 2026, you want to introduce a new platform, which will have lower costs, maybe faster turnaround time and also new revenue sources through the software side. What do you imagine the profitability to be like in the second half of the 2020s compared to today? Will it be higher? Often, we think about EVs as being more expensive or more costly with slimmer margins, but maybe it's the opposite that will be a turning point for higher margins.

第二個問題是關於 2026 年之後的 BEV 利潤結構。目前，您的營業利潤率約為 7%。但在 2026 年，你想引入一個新平台，它的成本更低，周轉時間可能更快，並且還可以通過軟件方面獲得新的收入來源。與今天相比，您認為 2020 年代下半葉的盈利能力會怎樣？會不會更高？通常，我們認為電動汽車更昂貴或成本更高，利潤率更低，但也許恰恰相反，這將成為更高利潤率的轉折點。

(foreign language)

（外語）

Regarding the first question, I would like to answer. I think related to the first question, the previous term, we wanted to deliver as early as possible to the customers demand, but we were not able to fulfill the demand. And so the numbers that we have cited an accumulation of the response of the production site to the customers' needs and also the products that we want to launch going forward.

關於第一個問題，我想回答一下。我認為與第一個問題有關，上一期，我們希望儘早交付客戶需求，但我們無法滿足需求。因此，我們引用的數字是生產現場對客戶需求的響應的累積，也是我們希望在未來推出的產品。

So regarding that, we believe that can probably set a base volume of 10.1 million units, as was mentioned earlier. And this 10.1 million units as Hans-san questioned earlier, how do we intend to achieve those goals because we were having such difficulty manufacturing last year. That's probably the point of your question.

因此，就此而言，我們認為可能會設定 1010 萬單位的基本數量，如前所述。而這 1010 萬個單位正如 Hans-san 早些時候所質疑的那樣，我們打算如何實現這些目標，因為我們去年在製造方面遇到瞭如此困難。這可能是你問題的重點。

But 1 year ago, we had no idea which semiconductor chips will be in short supply at 1 time. So as Sato said, suddenly, there would be a shortage of components, and we had to lose the production volume against the plan. That was the situation that continued last year. But we want to make these risk semiconductors visible. And once we gained visibility, then we will change the design so that we can have alternative sources and the sellers will try to actively sell the nonrisk semiconductors. And through these efforts, over 1 year, although things are not perfect, our ability in power to manage semiconductor supply has been greatly improved.

但是1年前，我們並不知道哪些半導體芯片會一度供不應求。所以正如佐藤所說，突然間，零部件會短缺，我們不得不違背計劃減少生產量。這是去年持續的情況。但我們想讓這些風險半導體可見。一旦我們獲得知名度，我們就會改變設計，這樣我們就可以有其他來源，賣家將嘗試積極銷售無風險的半導體。通過這些努力，一年多來，雖然還不盡如人意，但我們管理半導體供應的能力已經有了很大的提高。

And so as the new base volume, we believe that the 10.1 million units is a feasible number that we can cite. What we want is the customer smiles and for that, we want each person in the production site or in the regions to set up good communication and relationship with the customers. And as a result of our focus on product and manufacturing, we were able to cite this number of 10.1 million. So as you said, our base volume would be a record number of vehicle sales.

因此，作為新的基數，我們認為 1010 萬台是我們可以引用的可行數字。我們想要的是客戶的微笑，為此，我們希望生產現場或地區的每個人都與客戶建立良好的溝通和關係。由於我們專注於產品和製造，因此我們能夠引用這個數字 1010 萬。所以正如你所說，我們的基礎銷量將是創紀錄的汽車銷量。

So may I respond to the second question, Hans-san, thank you for that question. After 2026, we intend to launch next-generation battery EVs. And as was explained at the policy meeting earlier, the key point would be how to reduce costs. I think that is 1 angle that's critical. In the case of battery EVs, as you know, the proportion of batteries against the total cost structure is very high. So how to develop a car or design a car that can most efficiently utilize the power of the battery. Now battery EV through the development and manufacture battery EVs, we've learned a lot of things, so we want to incorporate these learnings at the same time. The next-generation BEV must change the factories themselves. So we are now discussing this point.

那麼我可以回答第二個問題嗎，Hans-san，謝謝你提出這個問題。 2026 年之後，我們打算推出下一代純電動汽車。正如早些時候在政策會議上解釋的那樣，關鍵是如何降低成本。我認為這是關鍵的 1 個角度。如您所知，就純電動汽車而言，電池佔總成本結構的比例非常高。那麼如何開發汽車或設計一輛能夠最有效地利用電池電量的汽車。現在電池電動汽車通過開發和製造電池電動汽車，我們學到了很多東西，所以我們想同時結合這些知識。下一代 BEV 必須改變工廠本身。所以我們現在討論這個問題。

So the manufacturing process itself will be totally changed. So it's not placing an engine on the body and then assembling parts on top totally new and refreshed process, for example, reducing the total line by half or improving the production efficiency through these very drastic improvements, we would like to reduce cost, the manufacturing cost, so how to reduce the increase in costs will be a key factor.

因此製造過程本身將完全改變。所以不是把發動機放在車身上，然後在上面組裝零件，全新的和更新的過程，例如，通過這些非常大的改進，將總生產線減少一半或提高生產效率，我們希望降低成本，製造成本，那麼如何降低成本的增加將是一個關鍵因素。

And another factor is, as Hans-san said, battery EV, value-add must be improved. And I think this is adding intelligence. Adding intelligence is most important. There are some appealing attractive software using product value add that can only be achieved with BEV and we believe it's possible to enhance the customers' experience value as a result of this. And so we just earlier released new -- news on the new organization and leaders who have learned in China under new team membership will grapple with developing a new battery EV. So we have just started with this team's activities. So I do hope that you will support these activities going forward as well.

另一個因素是，正如 Hans-san 所說，必須提高電池 EV 的附加值。我認為這是在增加智能。增加智力是最重要的。有一些吸引人的有吸引力的軟件使用只能通過 BEV 實現的產品增值，我們相信有可能因此提高客戶的體驗價值。因此，我們剛剛發布了新消息——關於新組織的新聞，新團隊成員在中國學習的領導者將致力於開發新的電池電動汽車。所以我們剛剛開始這個團隊的活動。所以我希望你們也能支持這些活動。

And what about the profitability level in the later half of the 2020s? Will it be comparable to what we see today or higher?

2020年代後半期的盈利水平如何？它能與我們今天所看到的相提並論嗎？

(foreign language)

（外語）

So not only battery EVs, but we'll be delivering various electrified vehicles through multi pathways. So we wanted to secure the same level of profitability as today. We've already said this earlier, there may be various difficulties, but we want to deliver even better cars to customers. And by pursuing this goal, we believe that we should be able to achieve that goal of profitability.

因此，不僅是電池電動汽車，我們還將通過多種途徑提供各種電動汽車。因此，我們希望確保與今天相同的盈利水平。我們之前已經說過了，可能會有各種困難，但我們想為客戶提供更好的汽車。通過追求這個目標，我們相信我們應該能夠實現盈利目標。

Now to the next question. The person in the fifth row from the front.

現在到下一個問題。前排第五排的人。

My name is Yamani from NHK. I have 2 questions. The first question is related to the number, 10.1 million production. So this number you're not pursuing volume. Is that the intent? And that is my first question. And second question is about the Chinese business. Mr. Miyazaki said last year, sales volume went down and new energy vehicles are increasing and the Japanese makes are struggling in the Chinese market. So TMC, what is your stance on the current status of the Chinese market, which is said to be the largest in the world? And what about your future prospects?

我是 NHK 的 Yamani。我有兩個問題。第一個問題是關於數量，1010萬的產量。所以這個數字你不是在追求數量。這是意圖嗎？這是我的第一個問題。第二個問題是關於中國業務的。宮崎駿說，去年銷量下降，新能源汽車增加，日系汽車在中國市場舉步維艱。那麼TMC，對於號稱全球最大的中國市場的現狀，您怎麼看？你的未來前景如何？

Thank you very much for your question. 10.1 million sales volume forecast. As Mr. Miyazaki mentioned, so we need production and sales that will be able to meet the demand so that we'll be able to meet the needs of the customers. So ultimately, we need to be selected by the customers. And when that -- only when that happens, we'll be able to achieve that number. And the Chinese business will be discussed by Mr. Miyazaki.

非常感謝你的問題。 1010萬銷量預測。正如宮崎先生所說，所以我們需要能夠滿足需求的生產和銷售，這樣我們才能滿足客戶的需求。所以最終，我們需要被客戶選擇。當那——只有當那發生時，我們才能達到那個數字。而中國業務將由宮崎駿先生討論。

On the Chinese business. Looking back on the results of last year, we weren't able to secure sufficient semiconductors. And something that is specific to China was the COVID impact from the beginning of the year. So demand went down from time to time.

關於中國業務。回顧去年的結果，我們無法獲得足夠的半導體。中國特有的是今年年初 COVID 的影響。所以需求不時下降。

So Lexus exported to China from Japan went down last year. However, as you know, in China, we have local business. So if you look at Chinese business overall, last year, although we were struggling in terms of volume compared to the previous year, our share increased steadily in the Chinese market.

所以去年從日本出口到中國的雷克薩斯下降了。但是，如您所知，在中國，我們有本地業務。所以如果你整體來看中國業務，去年，雖然我們在數量上與前一年相比有所掙扎，但我們在中國市場的份額穩步增長。

Many people look at the BEV market alone. But in China, there is the hybrids, PATVs as well. And many of our customers are using these vehicles. And last year, our share has gone up to around 9%. So the market will continue to be very competitive. However, vehicles that will be lost by Chinese customers and vehicles that will please the Chinese customers is something that we will continue to pursue. And as a result, we will make efforts so that as a result, our business will grow.

許多人只關注 BEV 市場。但在中國，有混合動力車，也有 PATV。我們的許多客戶都在使用這些車輛。去年，我們的份額上升到 9% 左右。因此，市場將繼續競爭激烈。但是，中國客戶會丟失的車，讓中國客戶滿意的車，是我們會繼續追求的。因此，我們將努力使我們的業務增長。

Let me add one point from my side. Product competitiveness or the products or the market in China is changing very quickly. As we mentioned in the Shanghai Motor Show, in a timely manner, we mean to provide vehicles that will be loved by Chinese customers. And therefore, we have development sites in China, and we're trying to localize development in China so that we can develop at a place that is close to the customer and catch up with the demand of the customers in the Chinese market.

讓我從我這邊補充一點。中國的產品競爭力或產品或市場變化非常快。正如我們在上海車展上提到的，及時，我們的意思是提供中國客戶喜愛的車輛。因此，我們在中國有開發基地，我們正在努力在中國本地化開發，這樣我們就可以在靠近客戶的地方開發，趕上中國市場客戶的需求。

Any further questions? I guess, the person in the front row again.

還有其他問題嗎？我猜，又是前排的那個人。

[Umeda from TDS] I have 2 questions. Both have to do with battery EVs. The first question is to Executive Vice President, Nakajima. You just explained about the BEV and how you view the Chinese market for BEV. So could you be more specific? You went to the Shanghai Motor Show and I think from the viewpoint of genchi genbutsu going to the site to see the facts. What is your impression of the Chinese market shift to electrified vehicles? And Toyota -- what do you think is you're lacking in terms of product development? What do you have to change in order to address the Chinese market? So could you be specific about this?

[來自 TDS 的梅田] 我有兩個問題。兩者都與電池電動汽車有關。第一個問題是中島執行副總裁。您剛剛解釋了 BEV 以及您如何看待 BEV 的中國市場。那你能說得更具體點嗎？你去了上海車展，我想從現地現物的角度來看，去現場看看事實。您對中國市場轉向電動汽車的印像如何？豐田——你認為你在產品開發方面缺乏什麼？為了迎合中國市場，你們有什麼改變？那你能具體說說嗎？

Second question is to President Sato. The battery EV interim objective of target of 1.5 million was announced last month, and you said that you'll be injecting JPY 3 trillion in R&D for BEV this term. So in order to achieve your goals, what specifically do you intend to do within the extent possible to disclose.

第二個問題是給佐藤社長的。上個月宣布了 150 萬輛電動汽車的中期目標，您表示本學期將為 BEV 投入 3 萬億日元的研發資金。所以為了實現你的目標，你具體打算做什麼，在可能的範圍內公開。

Thank you, (foreign language). So going on to the first question first. As you said, we went to the Shanghai Motor Show, frankly, I was totally amazed basically the electrification of battery EV was progressing very rapidly, not only that, but that's already taken for granted and that differentiation and competition over differentiating through adding intelligence was much faster than we expected.

謝謝，（外語）。那麼首先繼續第一個問題。正如你所說，我們去了上海車展，坦率地說，我完全感到驚訝，基本上純電動汽車的電動化進展非常迅速，不僅如此，而且這已經是理所當然的，通過增加智能來實現差異化和差異化的競爭是比我們預期的要快得多。

And as I said, Chinese customers, what -- how to timely deliver on their needs, for example, infotainment, digital cockpit, cockpit development. It will take too long if we were to develop in Japan. So that's why we want to accelerate localization, also we wanted to gain the cooperation of the local suppliers in speeding up our endeavors.

正如我所說，中國客戶，如何及時滿足他們的需求，例如信息娛樂、數字駕駛艙、駕駛艙開發。如果我們要在日本發展，時間會太長。所以這就是為什麼我們要加速本地化，我們也想獲得當地供應商的合作來加快我們的努力。

Regarding the second question, 1.5 million units is not a target per se, but it's a base volume criteria that we want to work toward. And as I said, not only Toyota, but many suppliers, many dealers will be all cooperating to make the shift towards battery EV. So we have to set the pace and show the pace to the others. So that's our viewpoint. And against that backdrop, as I said earlier, we must, first of all, create a firm lineup of products. And immediately, we already have several models of battery EVs launched in the market, and we have received a lot of feedback from the market. And so we want to improve our marketing power and market -- our product development power in an (inaudible) manner.

關於第二個問題，150 萬臺本身並不是目標，但它是我們想要努力實現的基本數量標準。正如我所說，不僅是豐田，還有許多供應商、許多經銷商都將通力合作，以實現向電動汽車的轉變。所以我們必須設定步伐並向其他人展示步伐。這就是我們的觀點。在這種背景下，正如我剛才所說，我們必須首先建立一個穩定的產品陣容。目前，我們已經在市場上推出了多款純電動汽車，我們也收到了很多來自市場的反饋。因此，我們希望以（聽不清）的方式提高我們的營銷能力和市場——我們的產品開發能力。

That's critical, cruising range and the charging time necessary, there are voices and requiring improvements there. So we want to speed up the efforts to improve the marketing power of our products. Also we want to engage in speedy Toyota like Kaizen and entice as many people as possible to want to ride Toyota BEVs. We must sort a lineup that would not fail the expectations.

這很關鍵，續航里程和充電時間是必要的，那裡有聲音和需要改進的地方。所以我們要加快努力，提高我們產品的營銷力。此外，我們還希望像 Kaizen 一樣參與快速的豐田，並吸引盡可能多的人想要乘坐豐田 BEV。我們必須整理一個不會辜負預期的陣容。

And of course, China and the United States will be the central market. So not only Toyota loan, but we want to collaborate with our partners to respond to -- with a good full lineup to respond to customers' needs and also to provide and develop products that a Toyota-like appeal and specific attractiveness to customers.

當然，中國和美國將是主要市場。因此，不僅是豐田貸款，我們還希望與我們的合作夥伴合作，以應對客戶的需求，提供和開發具有豐田般吸引力和特定吸引力的產品。

Thank you very much to Mr. Umeda. The person along the aisle in the middle.

非常感謝梅田先生。走道中間的那個人。

My name is [Narabi] from Asahi Shimbun. I have 2 questions. The first question is about storing material costs. Parts prices and supporting suppliers is something that you are doing, including and paying for utility charges. Two ticket only directly supports primary suppliers, but you have a secondary or Tier 3 suppliers. What is the current status of these Tier 2 or 3 suppliers? At the moment, 51 million impact of storing material prices, we understand. So how much support went to suppliers? And what kind of support will continue to win is another question I would like to ask.

我的名字是朝日新聞的[Narabi]。我有兩個問題。第一個問題是關於存儲材料成本。零件價格和支持供應商是您正在做的事情，包括並支付公用事業費用。二票只直接支持一級供應商，但你有二級或三級供應商。這些二級或三級供應商的現狀如何？目前，5100萬的儲料價格影響，我們理解。那麼供應商獲得了多少支持？而什麼樣的支持會繼續贏得是我想問的另一個問題。

And my second topic is related to what Mr. Sato mentioned at the outset, which is about Daihatsu. In the automobile industry, you have the suppliers and you have the dealers. So many people are involved in the industry. And these people working together as part of the strength of the industry.

而我的第二個話題就是佐藤先生一開始提到的關於大發的話題。在汽車行業，有供應商，也有經銷商。這麼多人涉足這個行業。這些人一起工作，成為行業力量的一部分。

And that may have turned into pressure like not being able to change the plans that some people say that, that may be at the recourse of this problem. Mr. Sato, you mentioned the development environment possibly being a problem. And you also talked about premium environment in which you can speak your mind. And you also talked about making an environment where people can freely talk. So about you are about to identify the recalls, but what is your current stance on governance and corporate culture?

這可能已經變成了壓力，比如無法改變一些人所說的計劃，這可能是這個問題的根源。佐藤先生，您提到開發環境可能是個問題。你還談到了可以暢所欲言的優質環境。你還談到了創造一個人們可以自由交談的環境。所以關於你將要確定召回，但你目前對治理和企業文化的立場是什麼？

Thank you very much for your question. Your first question was about storing material costs. So with the suppliers, we've had a close communication. We talk directly with Tier 1 suppliers. And if you look at the numbers, changing the sales price and adjustment of purchase costs is something that you can see from the numbers.

非常感謝你的問題。您的第一個問題是關於存儲材料成本。因此，我們與供應商進行了密切的溝通。我們直接與一級供應商交談。而如果你看數字的話，改變銷售價格，調整採購成本，這些都是從數字上就能看出來的。

And if you look at Tier 2 and Tier 3 suppliers. Many people have different opinions, and we are still on our way to further improvement. But our intent is to protect the supply chain so that we can overcome the current rough times. So we want to continue dialogue with the suppliers and continue the initiatives that we are undertaking.

如果你看看二級和三級供應商。很多人有不同的看法，我們還在進一步完善的路上。但我們的目的是保護供應鏈，以便我們能夠度過當前的艱難時期。因此，我們希望繼續與供應商對話，並繼續我們正在採取的舉措。

And another point is about this fiscal year. Overall, the general material prices have started to stabilize. And some -- for some of the materials, the prices have started to come down. But in particular, if you look at utility charges in Japan, over the past year, it has continued to increase. And this year, it still stays at a high level. So we need to continue to talk with the suppliers on that factor. So TMC -- in addition to TMC and suppliers, the JAMA or the automobile industry as a whole will have to tackle this together and are actually trying to tackle this together.

還有一點是關於本財年的。總體來看，普材價格已經開始企穩。還有一些 - 對於某些材料，價格已經開始下降。但特別是，如果你看看日本的公用事業收費，在過去的一年裡，它一直在增加。而今年，依舊保持在高位。所以我們需要繼續與供應商討論這個因素。所以 TMC——除了 TMC 和供應商之外，JAMA 或整個汽車行業將不得不共同解決這個問題，並且實際上正在努力共同解決這個問題。

Your second question was about the Daihatsu issue. Let me talk about something that I have in mind. So with regards to this regularity, this was about our certification or collision safety. And this irregularity itself should never have happened, but it did happen, which means that there should be a root cause.

你的第二個問題是關於大發的問題。讓我談談我的想法。因此，關於這種規律性，這與我們的認證或碰撞安全有關。而這種不規則本身本不應該發生，但它確實發生了，也就是說應該是有根源的。

So how to identify the root cause and eliminate that cause is something that we have to tackle. Blaming this on somebody is not a solution. We are in the auto industry, and there are rules in the industry, and we are manufacturing cars in this industry. And there shouldn't be anybody who do a misconduct intentionally, but there was, which means that there should be some environmental factors. So the subject vehicles, they are used by customers, and we have to make sure that we do not cause any inconvenience to the customers. So we need to clarify what happened.

因此，如何找出根本原因並消除該原因是我們必須解決的問題。將此歸咎於某人不是解決辦法。我們是做汽車行業的，這個行業是有規矩的，我們在這個行業裡造車。不應該有任何人故意不當行為，但是有，這意味著應該有一些環境因素。因此，目標車輛由客戶使用，我們必須確保不會給客戶造成任何不便。所以我們需要弄清楚發生了什麼。

And as a first step, we need to identify that. And also, we need to explain to the relevant parties. And we have to explain -- we have already explained that to relevant parties and started to take initiatives to make sure that this does not happen again. And there is something that we think is important. The cause of issues like these is not a specific person.

作為第一步，我們需要確定這一點。而且，我們需要向有關方面作出解釋。我們必須解釋 - 我們已經向相關方解釋過，並開始採取措施確保這種情況不會再次發生。我們認為有些事情很重要。造成這些問題的原因不是特定的人。

There was a mechanism or environment that forced that person to undertake a misconduct. And we need to go to the gemba. Repeat discussions and make sure that people talk their minds to us, and we need to continue dialogue and we need to put ourselves in their shoes and think and understand why this happened. The current situation will have to be accurately communicated to many people. We need to do away with the concerns, and we need to secure a psychological safety.

存在迫使該人進行不當行為的機製或環境。我們需要去現場。重複討論並確保人們向我們傾訴他們的想法，我們需要繼續對話，我們需要設身處地為他們著想，思考並理解為什麼會發生這種情況。目前的情況必須準確地傳達給許多人。我們要打消顧慮，要有心理安全感。

As I mentioned at the outset, Chairman Toyoda went to Thailand, which is a producing country and the main market of the target vehicle. So Mr. Toyoda went to Thailand and met many stakeholders face to face and talk to them. Mr. Nagata was with Mr. Toyoda at that time. What is the thinking of Toyota in facing this issue will be discussed by Mr. Nagata.

正如我一開始提到的，豐田章男去了泰國，泰國是目標汽車的生產國和主要市場。於是豐田章男去了泰國，和很多利益相關者面對面交流。 Nagata 先生當時與 Toyoda 先生在一起。豐田在面對這個問題時的想法是什麼，將由永田先生討論。

Thank you very much. My name is Nagata. The day before yesterday, which was Monday, with the Chairman, we -- I went to Thailand to explain basically, Yaris Ativ is produced in Thailand and exports are made. And Thailand is a large volume market for Yaris Ativ. So basically, we knew that the vehicle was safe. So we wanted to communicate the fact that the vehicle's safe to the customers and stakeholders.

非常感謝。我的名字是永田。前天，也就是星期一，我和主席一起去了泰國，基本上解釋了 Yaris Ativ 在泰國生產並出口。泰國是 Yaris Ativ 的大容量市場。所以基本上，我們知道車輛是安全的。所以我們想向客戶和利益相關者傳達車輛安全的事實。

As Mr. Sato mentioned at the outset, what we thought was important was that Toyota as a gateway factory is producing the vehicle. And with Daihatsu, we have a development site, which is TDEM. So the TDEM members -- many of them are from Daihatsu. So the people producing the vehicle and the TDEM members were all concerned and had anxiety about what was really happening.

正如佐藤先生一開始提到的，我們認為重要的是豐田作為門戶工廠正在生產車輛。對於大發，我們有一個開發站點，即 TDEM。所以 TDEM 成員——他們中的許多人來自大發。所以生產車輛的人和 TDEM 成員都對真正發生的事情感到擔憂和焦慮。

So what is happening and the fact that the vehicle is safe. And as Mr. Sato mentioned, Toyota is a company that stops things when a problem happens and tries to identify the root cause until it is known and countermeasures are taking. That cycle is repeated at Toyota. And Toyota is a company where people can freely speak their mind. So that was to be communicated to people in Thailand. The people producing the vehicles, the TDEM developers, dealers, we wanted to communicate that this to these stakeholders.

那麼發生了什麼以及車輛安全的事實。正如佐藤先生所說，豐田是一家在出現問題時停止工作並試圖找出根本原因直到知道並採取對策的公司。豐田重複著這個循環。豐田是一家人們可以自由暢所欲言的公司。所以這將傳達給泰國人。生產車輛的人員、TDEM 開發人員、經銷商，我們希望將這一點傳達給這些利益相關者。

So as you mentioned, for the group governance, we want to make sure that we have a culture where you can fully speak your mind. And we need to use genchi genbutsu to identify the root cause. That is something that I learned on you at time. And so we will collaborate with other group companies in tackling this issue. Thank you.

因此，正如您提到的，對於集團治理，我們希望確保我們擁有一種您可以充分暢所欲言的文化。我們需要使用 genchi genbutsu 來確定根本原因。那是我當時從你身上學到的東西。因此，我們將與其他集團公司合作解決這個問題。謝謝。

We now like to receive questions from those reporters who are now online or participating online. So we would like to take this time to entertain questions of online Bloomberg. Inajima-san from Bloomberg, we will switch the screen. So please start speaking if you see your face on the screen, please.

我們現在喜歡接受那些現在在線或在線參與的記者的提問。所以我們想藉此機會來回答在線彭博社的問題。來自彭博社的 Inajima-san，我們將切換屏幕。如果你在屏幕上看到你的臉，請開始發言。

Hello, can you hear me?

你好，你能聽到我說話嗎？

Yes, we hear you.

是的，我們聽到了。

This is Inajima from Bloomberg. I have 2 questions as well. One is about dividends and the share repurchase. Regarding dividend, you will conduct increase dividends stably and continuously. And as for share repurchase, conduct repurchases in a flexible manner, focusing on our share price levels. So how do you tend to do this for share repurchases? When you think -- talk about share level, would it be 1x PBR? Would that be one of the factors for a share buyback, or do you have some other criteria internally? And when that internal threshold is -- fall short, and then you will, for example, reduce the share repurchase volumes.

我是彭博社的 Inajima。我也有兩個問題。一是關於股息和股票回購。在分紅方面，你們會穩定持續地進行分紅。在股票回購方面，靈活回購，重點關注我們的股價水平。那麼你如何傾向於為股票回購做這件事呢？當你想到 - 談論份額水平時，它會是 1x PBR 嗎？這會是股票回購的因素之一，還是您內部有其他一些標準？當該內部閾值不足時，例如，您將減少股票回購量。

Also second is Sato, President Sato talked about mobility show and that you show a concept car of the BEV at that show. And so the next-generation BEV concept cars, which you intend to launch in 2026 will be shown at the mobility show in autumn? Is that what you meant?

第二個是佐藤，佐藤總裁談到了機動車展，你在那個車展上展示了 BEV 的概念車。那麼，您打算在 2026 年推出的下一代 BEV 概念車將在秋季的機動車展上展出？這是你的意思嗎？

Thank you for that question. Yes. Regarding the dividend and share repurchase, as we explained, our major policy is to reset our approach to both. And that's what we have conveyed to you earlier. As we said earlier, up to now, in terms of dividend, we had a criteria of consolidated payout ratio of 30% as a policy. But those shareholders, what would please our shareholders, how can we contribute more to our shareholders. We had that sort of a discussion internally, and so we decided to increase dividends stably and continuously as a new revised policy.

謝謝你提出這個問題。是的。關於股息和股票回購，正如我們所解釋的，我們的主要政策是重新調整我們對這兩者的處理方式。這就是我們之前向您傳達的內容。正如我們之前所說，到目前為止，在股息方面，我們的政策是綜合派息率為 30%。但是那些股東，我們的股東會高興什麼，我們怎麼才能對我們的股東做出更多的貢獻。我們內部有這樣的討論，所以我們決定作為新修訂的政策，穩定和持續地增加股息。

And as a result, regarding our share repurchases. Of course, this will depend on share price levels, but the major policy is, as we have been saying all along, to be flexible in our approach. And so we will make judgments on the absolute value of share repurchase flexibly. But our major revised policy is to focus more on dividends rather than share repurchases.

因此，關於我們的股票回購。當然，這將取決於股價水平，但正如我們一直所說的那樣，主要政策是在我們的方法上保持靈活性。因此我們將靈活判斷回購股份的絕對價值。但我們的主要修訂政策是更多地關注股息而不是股票回購。

Anything to add, Chief Officer Accounting group.

有什麼要補充的，首席會計組。

We will look at the share price levels in our share repurchases, share price levels currently not a satisfactory level at all for us. The PB -- it's, of course, below 1x of PBR, and we also are not satisfied with this, and we take this very seriously. So to prove this, for example, PBR can be dividing to PR and ROE. And as Sato-san said, this mobility concept or electrification and adding intelligence and more functionality, how can we more specifically provide this to customers of this vision. I think that we must focus on developing and delivering costs that satisfy people's expectations.

我們將在我們的股票回購中查看股價水平，目前的股價水平對我們來說根本不是一個令人滿意的水平。 PB——當然低於 PBR 的 1 倍，我們對此也不滿意，我們非常重視這一點。因此，為了證明這一點，例如，PBR 可以劃分為 PR 和 ROE。正如 Sato-san 所說，這種移動概念或電氣化並增加智能和更多功能，我們如何才能更具體地向具有這種願景的客戶提供這種服務。我認為我們必須專注於開發和交付滿足人們期望的成本。

As for ROE, this is rather detailed, but of course, we have achieved this ROE with some intention intently, for example, in finance or inventory. And this automobile industry we have to defend this industry, and when we experienced various natural disasters then we had to have on hand finance, which could sustain our business operations for the next 6 months. So that's a role.

至於ROE，這個是比較細的，當然我們是有意達到這個ROE的，比如在財務或者存貨上。而這個汽車行業我們必須保衛這個行業，當我們經歷各種自然災害時，我們必須手頭有資金，可以在接下來的 6 個月內維持我們的業務運營。這就是一個角色。

And also, last year, semiconductor and when production was reduced, then we had to protect the supply chain and our assets, which means that we have to hold a certain level of inventory to do that. So the entire automotive industry has to work together and fight together. And I believe that part of the ROE numbers include this intentional measures. So we are not at all satisfied with the results. So we would like to continue to make improvements against these numbers. Thank you.

而且，去年，當半導體產量減少時，我們必須保護供應鍊和我們的資產，這意味著我們必須持有一定水平的庫存才能做到這一點。所以整個汽車行業要齊心協力，齊心協力。而且我相信部分 ROE 數字包括這種有意的措施。所以我們對結果一點都不滿意。所以我們想繼續對這些數字進行改進。謝謝。

Let me try to respond to the second question, Inajima-san. The next-generation battery EV, would we be showing them at the 26 Mobility Show? The answer is yes. Rather than explaining our words, we thought it was much better to have you see the concept models and give us your feedback. So we decided to showcase it a mobility show.

第二個問題我試著回答一下，稻島同學。下一代電池 EV，我們會在第 26 屆移動展上展示它們嗎？答案是肯定的。與其解釋我們的話，我們認為讓您看到概念模型並向我們提供反饋會更好。所以我們決定用機動表演來展示它。

As was released today, the new organization called the BEV Factory, and Sato-san will be the head of this. Sato-san was developing battery EVs in China previously. And let me share with you his comment. He said that he wants to change the future of cars with these next-generation BEVs. When he talks about the future, of course, he's talking about the future of cars. It was about the form, both in form, as well as the adding of intelligence to cars.

正如今天發布的那樣，新組織稱為 BEV 工廠，Sato-san 將擔任該組織的負責人。 Sato-san 之前在中國開發電池電動汽車。讓我與您分享他的評論。他說他想用這些下一代 BEV 改變汽車的未來。當他談到未來時，當然，他是在談論汽車的未來。它是關於形式的，既包括形式，也包括為汽車增加智能。

And the second point would be factories that is to change the future of the production factories. So we will have a wholesale change of the manufacturing process. Also, the change -- our change of work the way we work must also be revised in a large manner toward the future.

第二點是改變生產工廠未來的工廠。因此，我們將對製造過程進行全面更改。此外，變化——我們工作方式的變化也必須在很大程度上針對未來進行修改。

And as you know, within the group, we have woven by Toyota and various other venture companies. We have a lot of connections with Toyota ventures, et cetera. So we will continue aggressive investment into these in diverse so with various partners and various friends and colleagues. We -- within the canvass of next years' BEV, we want to consider how we can change the future vision and change the way we work.

如您所知，在集團內部，我們由豐田和其他各種風險投資公司組成。我們與豐田風險投資等有很多聯繫。因此，我們將繼續與各種合作夥伴以及各種朋友和同事一起積極投資於這些領域。我們 - 在明年的 BEV 的討論中，我們想考慮如何改變未來的願景並改變我們的工作方式。

And so this is, of course, Sato-san's personal views, but I do hope that you will watch -- see the showcase of our new concept BEV models in the fall mobility show. So please look forward to it.

因此，這當然是 Sato-san 的個人觀點，但我確實希望您能觀看——在秋季機動車展上觀看我們新概念 BEV 模型的展示。敬請期待。

We will take another question online from Wall Street Journal, Mr. River Davis.

我們將在線回答華爾街日報 River Davis 先生的另一個問題。

Hello. This is River Davis from the Wall Street Journal. I wanted to ask 2 follow-up questions. The first is on the China market. We heard a lot from auto executives coming back to Japan about how they felt there was a lot of competition that they realized is happening in China and that they needed to find their own unique strategy of remaining relevant. And Miyazaki-san, you spoke about the strength of hybrids in China. Do you feel like this is a unique kind of weapon for Toyota in that market going forward?

你好。我是《華爾街日報》的戴維斯河。我想問 2 個後續問題。首先是在中國市場。我們從回到日本的汽車業高管那裡聽到很多關於他們的感受，他們意識到中國正在發生很多競爭，他們需要找到自己獨特的戰略來保持相關性。宮崎先生，您談到了混合動力車在中國的實力。你覺得這是豐田在未來市場上的一種獨特武器嗎？

And my second question is on EVs and profitability. Last month, you spoke a lot about kind of how great profit margins are on hybrid vehicles at the moment. So as you're looking towards the 2026 EV target, the 2030 EV sales target, how do you prioritize maximizing profitability versus attaining those EV targets?

我的第二個問題是關於電動汽車和盈利能力。上個月，您談到了目前混合動力汽車的利潤率有多高。因此，當您展望 2026 年電動汽車目標、2030 年電動汽車銷售目標時，您如何優先考慮最大化盈利能力與實現這些電動汽車目標？

(foreign language)

（外語）

This is Miyazaki speaking. I will be responding to your first question. So how we compete as of today and how we compete in the future is something that I would like to talk about as Mr. Nakajima mentioned, what we saw at the motor show was something that we were surprised with. For China, from a global perspective, just like the United States at battery, they are moving quickly to battery EVs. So for China, we want to prepare a solid battery EV strategy.

我是宮崎駿。我會回答你的第一個問題。所以我們今天如何競爭以及我們未來如何競爭是我想談談的，正如中島先生提到的，我們在車展上看到的是我們感到驚訝的事情。對於中國來說，從全球的角度來看，就像電池領域的美國一樣，他們正在迅速轉向純電動汽車。所以對於中國，我們要準備一個堅實的電池電動汽車戰略。

Then the question is including Chinese mix, how are we going to compete in BEVs? First, we need to identify the needs of the Chinese customers and supply vehicles that are very much like a car manufacturers vehicle. So that is how we intend to prepare for the Chinese market. Of course, the preferences of the Chinese customers and America and European preferences may be different, but China has its own unique characteristics. We will study those so that we can enhance our competitiveness in the market.

那麼問題是包括中國組合，我們將如何在 BEV 中競爭？首先，我們需要確定中國客戶的需求，並提供非常像汽車製造商車輛的車輛。這就是我們打算如何為中國市場做準備。當然，中國消費者的喜好可能與歐美消費者的喜好不同，但中國有其獨特的特點。我們將研究這些，以便我們可以提高我們在市場上的競爭力。

We are taking a multi-pathway approach. And China is a very large market, and we are going to provide various products. And one thing that we have to strengthen for the Chinese market is a battery EV vehicles. That is the first thing we have to do.

我們正在採取多途徑方法。中國是一個非常大的市場，我們將提供各種產品。我們必須為中國市場加強的一件事是電池電動汽車。這是我們要做的第一件事。

This is Sato speaking. And let me add something. And as Mr. Miyazaki mentioned in the Chinese market, the battery EVs are moving very quickly. So for the Chinese market battery EVs or DMC will make its utmost efforts. But also, on the other hand, there is solid demand for hybrid vehicles in China. Battery EV, a demand is more or less new demand. So a part of your question was a hybrid, will hybrid be a TMC's advantage? So the -- our demand structure is different between HPs and BEVs. So we would like to tackle both markets and try to be competitive in both.

我是佐藤。讓我補充一點。正如宮崎駿先生所說，在中國市場，純電動汽車發展非常迅速。所以對於中國市場的純電動車或者DMC都會全力以赴。但另一方面，中國對混合動力汽車有著強勁的需求。 Battery EV，一種需求或多或少是新的需求。所以你的問題的一部分是混合動力，混合動力會成為 TMC 的優勢嗎？所以——我們的需求結構在 HP 和 BEV 之間是不同的。因此，我們希望同時應對這兩個市場，並努力在這兩個市場上都具有競爭力。

So going back to this hall, the person in very front again.

所以回到這個大廳，又是最前面的那個人。

(inaudible) from Asahi Shimbun. I have 2 questions again. First question, the various auto OEMs are shifting toward battery EVs. In the case of Toyota, you have -- your strength is in hybrid cars, but going forward, what do you intend to do going forward regarding.

（聽不清）來自朝日新聞。我又有2個問題了。第一個問題，各種汽車原始設備製造商正在轉向電池電動汽車。就豐田而言，你有——你的優勢在於混合動力汽車，但展望未來，你打算在未來做什麼。

And the second question overlaps a bit with the first one. So the balance between investment and profitability from the battery EVs. The various auto OEMs are saying that BEV investment is becoming a burden on their profitability. And you say that you will aim for JPY 4 trillion in BEV investment by 2030, and you mentioned this in 2021. So have you updated these numbers.

第二個問題與第一個問題有些重疊。因此，電池電動汽車的投資和盈利能力之間的平衡。各種汽車原始設備製造商表示，BEV 投資正在成為他們盈利能力的負擔。你說你的目標是到 2030 年實現 4 萬億日元的 BEV 投資，你在 2021 年提到了這一點。你更新了這些數字了嗎？

Also, Toyota's EV business, you'll be investing first without recouping the investment -- profit. So how do you intend to secure the funds for investments?

此外，豐田的電動汽車業務，你將首先投資而不會收回投資——利潤。那麼您打算如何確保投資資金？

Thank you. Let me reply the first question. The second one will be handled by Miyazaki-san. So they -- our approach to battery EV, we have been communicating about all along that Toyota would like to strongly focus on battery EV is going forward. However, the renewed message from me is that our ultimate goal is to achieve carbon neutrality. And to achieve or to change mobility in the future. And so the customers' demands are diversing -- becoming diverse. And so the automotive industries need are diversifying, we want to apply to those diversified needs. And we also want to respond to changes in energy needs and enhance the value of cars and change the future of cars.

謝謝。我來回答第一個問題。第二個將由宮崎先生處理。所以他們 - 我們對電池 EV 的方法，我們一直在溝通，豐田希望大力關注電池 EV 的發展。然而，我再次傳達的信息是，我們的最終目標是實現碳中和。並在未來實現或改變機動性。因此，客戶的需求是多樣化的——變得多樣化。因此，汽車行業的需求正在多樣化，我們希望能夠滿足這些多樣化的需求。而我們也想應對能源需求的變化，提升汽車的價值，改變汽車的未來。

And we believe that, that -- those are very important initiatives to have people have -- expect more from vehicles, not only that powertrains are replaced with electricity -- electric power planes, and that changes the cost structures of cars. That alone will not be enough to create a vision of a sustainable industry for automobiles. So we have -- we can't lose sight of the ultimate goal.

我們相信，這些是讓人們擁有的非常重要的舉措 - 對車輛有更多期望，不僅是動力總成被電力取代 - 電力飛機，這改變了汽車的成本結構。僅此一點還不足以創造一個可持續發展的汽車行業願景。所以我們 - 我們不能忽視最終目標。

So we will focus on battery EVs as one solution, but our goal is to change the future of cars. And with this strong resolve, we want to grapple with this challenge with the local stakeholders.

因此，我們將專注於電池電動汽車作為一種解決方案，但我們的目標是改變汽車的未來。憑藉這種堅定的決心，我們希望與當地利益相關者一起應對這一挑戰。

Let me answer to the second question. JPY 4 trillion of investment in BEV was, of course, announced by our company as a base volume, but our current criteria is towards 1.5 million in 2026, maybe JPY 2.5 trillion investment will be necessary. Also towards the year 2030, in order -- we have set a volume -- base volume of 3.5 million.

我來回答第二個問題。 4 萬億日元的 BEV 投資當然是我們公司宣布的基礎量，但我們目前的標準是到 2026 年達到 150 萬日元，也許需要 2.5 萬億日元的投資。同樣到 2030 年，我們已經設定了 350 萬的基本數量。

But when we update this, perhaps this will require about a JPY 5 trillion investment as a base -- value-based volume. So against this backdrop, how do we intend to finance this investment? But as I said earlier, up to now, we have been engaged in cost reduction efforts as well as marketing efforts and by reinforcing our relationship with customers, we have been increasing our earnings power, and we have shown an outlook of JPY 3 trillion in earnings power this year.

但是當我們更新這個時，也許這將需要大約 5 萬億日元的投資作為基礎——基於價值的數量。那麼在這種背景下，我們打算如何為這項投資融資？但正如我之前所說，到目前為止，我們一直致力於降低成本和營銷工作，通過加強與客戶的關係，我們一直在提高盈利能力，我們已經展示了 3 萬億日元的前景。今年的盈利能力。

And in order to achieve this absolute goal value, the profit structure that we aim for is one that can generate new room for investment. And through that, we can finance future investments, including investments in BEVs. But battery EVs as Nakajima has mentioned all along, also, we have to reduce cost in battery EV development as well. But this is a challenge, yet a challenge. We have no prospect for this.

而為了實現這個絕對的目標價值，我們所追求的利潤結構是能夠產生新的投資空間的。通過這種方式，我們可以為未來的投資提供資金，包括對 BEV 的投資。但正如中島一直提到的電池電動汽車，我們也必須降低電池電動汽車開發的成本。但這是一個挑戰，也是一個挑戰。我們對此沒有希望。

So what we can do is to further promote the cost reduction of JPY 100 billion and then expand the value chain further so that we can reinforce the corporate stamina. And become a structure where we can generate profitability despite the headwind.

所以我們能做的就是進一步推動1000億日元的成本削減，然後進一步擴大價值鏈，這樣我們才能增強企業的後勁。並成為一個我們可以在逆風中產生盈利的結構。

So through these efforts, we want to finance our investment or generate enough funds for investment.

因此，通過這些努力，我們希望為我們的投資提供資金或產生足夠的資金用於投資。

May I -- you talked about JPY 5 trillion in investment. You -- would that be counting from this year, this fiscal year?

我可以——你談到了 5 萬億日元的投資。你 - 從今年，這個財政年度開始計算嗎？

Yes. From this fiscal year. Thank you.

是的。從本財年開始。謝謝。

Because of time limitations, let us take the two last questions. Person in the third row, in the central -- in the center.

由於時間關係，讓我們回答最後兩個問題。第三排的人，在中央——在中央。

My name is [Goro Kazaki], a journalist since COVID. The supply was in shortage. The more you produce, the more you can sell is what we have been saying. This was a very special time. And if you look at the results of your rivals, they have raised their price significantly and their operating margins were very high in many cases. And if you look at the numbers of Toyota on the other hand, you may not have been that aggressive in raising your prices. If I'm wrong, please correct me. But what is your exit strategy?

我的名字是 [Goro Kazaki]，自 COVID 以來一直是一名記者。供應短缺。你生產的越多，你就能賣得越多，這就是我們一直在說的。這是一段非常特別的時光。如果你看看你的競爭對手的結果，他們已經大幅提高了價格，而且在許多情況下，他們的營業利潤率非常高。另一方面，如果你看看豐田的數量，你可能沒有那麼積極地提高價格。如果我錯了，請糾正我。但是你的退出策略是什麼？

One time, there was -- at one time, -- there will be a time when supply will be higher than demand and products won't be selling that easy. So you might have been suppressing the amount of price hikes taking that into consideration, that was what I thought. So when supply goes up, how -- what is the exit strategy that TMC has in mind?

曾經有過——曾經有過——總有一天供應會高於需求，產品不會那麼容易銷售。因此，考慮到這一點，您可能一直在抑制價格上漲的幅度，這就是我的想法。那麼當供應增加時，TMC 的退出策略是什麼？

Thank you very much for your question. So in a sense, supply was in shortage. And with regards to raising prices, ultimately, well, we think mass production is extremely important. So high-quality products being delivered to our customers at affordable prices so that we can see smiles on the faces of the customers. That is at the basis of our management strategy.

非常感謝你的問題。所以從某種意義上說，供應是短缺的。至於提價，最終，嗯，我們認為大規模生產是極其重要的。如此高質量的產品以實惠的價格交付給我們的客戶，這樣我們就能看到客戶臉上的笑容。這是我們管理策略的基礎。

In the short term, things were very difficult. So rather than taking the route of raising prices. We took a longer-term perspective. We needed to maintain the rigs of trust with our customers. So first, we focused on making efforts ourselves. As I mentioned before, at this moment, in the past 14 years of Mr. Toyota's Presidentship, we've had a Corolla, Crown and other long-seller names. We have many products that are loved by the customers over the years.

在短期內，事情非常困難。所以而不是走漲價的路線。我們採取了更長遠的眼光。我們需要維持對客戶的信任。所以首先，我們專注於自己努力。正如我之前提到的，此時此刻，在豐田先生擔任總裁的過去 14 年裡，我們擁有了 Corolla、Crown 和其他長期暢銷的品牌。多年來，我們有許多深受客戶喜愛的產品。

So including prices, there are expectations of our customers. So it's not as simple as flexibly changing the prices because of economic conditions. That will not lead to a long-term relationship of trust with the customers. But of course, we have to look at the economic environment and improve our profitability.

因此，包括價格在內，還有我們客戶的期望。所以這不是因為經濟狀況而靈活改變價格那麼簡單。這不會導致與客戶建立長期的信任關係。但當然，我們必須審視經濟環境並提高我們的盈利能力。

So in the case of Crown rather than just looking at a single ground model, we need to pursue efficiency and improve the appeal of the product and competitiveness of the product and add value to the product. That is what we have been focusing on. So increase the basic strength and improve the appeal of the products. So that is what we mean by product centered management. And that will lead over the long term to establish a relationship with trust between TMC and its customers.

所以對於皇冠來說，不是只看單一的地面模型，而是要追求效率，提高產品的吸引力和競爭力，為產品增值。這就是我們一直關注的。所以增加基礎實力，提高產品的吸引力。這就是我們所說的以產品為中心的管理。從長遠來看，這將導致 TMC 與其客戶之間建立信任關係。

But when we enhance value add, of course, we need to consider prices that are commensurate with that value. So we need to strike a balance. The -- so we will stick to our basic management strategy. That is how we are taking this approach.

但是，當我們提高附加值時，當然，我們需要考慮與該價值相稱的價格。所以我們需要取得平衡。 - 所以我們將堅持我們的基本管理策略。這就是我們採用這種方法的方式。

In terms of profit, you seem to be struggling very much in North America, if you look at the numbers. If you look at news reports, soaring material crisis did not allow you to increase prices according to news reports, but it seems like you are very -- your exit strategy was not to immediately raise prices, but what will be your future exit strategy?

就利潤而言，如果你看一下數字，你似乎在北美非常掙扎。你看新聞報導，材料危機的高漲，按新聞報導的說法，沒有讓你漲價，但是你好像很——你的退出策略不是馬上漲價，但是你以後的退出策略是什麼？

Thank you for the question. For North America, producing cars and delivering cars is something that we were struggling with. So speeding up recovery of production is #1. And if you look at the labor environment in North America, in terms of manufacturing cost, we have to make further efforts for improvements. Based on TPS, total production system, we need to undertake improvement initiatives so that we are very strong in manufacturing at North American factories.

感謝你的提問。對於北美，生產汽車和交付汽車是我們一直在努力解決的問題。因此，加快恢復生產是第一要務。如果你看看北美的勞動力環境，在製造成本方面，我們必須進一步努力改善。基於TPS，total production system，我們需要採取改進措施，以便我們在北美工廠的製造方面非常強大。

We need to create a corporate foundation of a strong manufacturing for North America. The market, we need to have a dialogue with the market, with the customers to propose an appropriate price. That would be the order in which we tackle things.

我們需要為北美建立強大製造業的企業基礎。市場，我們要跟市場對話，跟客戶提出合適的價格。這就是我們處理事情的順序。

Thank you, Kazaki-san. So due to the interest of time, this will have to be the final question. The person in the middle, front row.

謝謝你，風崎同學。由於時間關係，這將是最後一個問題。中間的人，前排。

[Tanigawa] from [Invest Car Watch]. I have 2 questions as well. Well, your sales have improved. And I think this is primarily due to the increased vehicle sales. So as a delivery cycle so in longer, the dealers have a good communication with the customers, I believe. So what were some of the measures you took?

[投資汽車觀察]的[谷川]。我也有兩個問題。好吧，你的銷售額有所提高。我認為這主要是由於汽車銷量的增加。所以作為交貨週期這麼長，我相信經銷商與客戶有良好的溝通。那麼你們採取了哪些措施呢？

And second question. I think that you had a backlog of close to 2 million units at one time that was announced. So could you talk about the current backlog currently in Japan and overseas? And when over these long delivery dates be reduced to normal delivery dates.

第二個問題。我認為您在宣布的某個時間積壓了將近 200 萬個單位。那麼您能談談目前日本和海外的積壓情況嗎？當超過這些長交貨日期時，將減少到正常交貨日期。

Thank you, Tanigawa-san. Now with dealers communication with the longer delivery dates, I think that really differed depending on the region. And Japanese dealers they do have longer delivery dates to start with.

謝謝你，谷川先生。現在與經銷商就更長的交貨日期進行溝通，我認為這確實因地區而異。日本經銷商確實有更長的交貨日期。

So what they did was to at least tell the customers when they can expect the delivery because I think the biggest stress or frustration for customers would be not to know the steps of the delivery process. So we had to provide information to them. And the dealers also were required to respond to their questions. So that's the basis of communication.

所以他們所做的是至少告訴客戶他們什麼時候可以期待交貨，因為我認為客戶最大的壓力或挫敗感是不知道交貨過程的步驟。所以我們不得不向他們提供信息。經銷商也被要求回答他們的問題。這就是溝通的基礎。

And in the United States, they sell from their inventory. So because of this process, what caused bit match the needs of the customers and are best-selling. If they can get that information from the customers. And so the North American companies grasped that number and they can allocate from the location of the inventories in the dealers and then deliver to the customers. And through these efforts, this time, this term, we were able to cope with issues relating to customer delivery dates.

在美國，他們從庫存中進行銷售。因此，由於這個過程，導致比特符合客戶的需求並暢銷。如果他們可以從客戶那裡獲得該信息。因此，北美公司掌握了這個數字，他們可以從經銷商的庫存位置進行分配，然後交付給客戶。通過這些努力，這一次，這個學期，我們能夠處理與客戶交貨日期相關的問題。

As for Japan, due to the types of semiconductors required, we are having our Japanese customers wait longer. And so I want to explain at the very outset, semiconductor shortage is, of course, being alleviated gradually. So we hope that we will be able to improve our communication regarding delivery dates with the customers. I hope you'll keep a watch on improvements going forward.

至於日本，由於所需的半導體類型，我們讓日本客戶等待的時間更長。所以我想在一開始就說明，當然，半導體短缺正在逐漸緩解。因此，我們希望能夠改善與客戶就交貨日期進行的溝通。我希望你會關注未來的改進。

How about backlog, numbers?

積壓情況如何，數字？

May I talk about backlog? Through the longer delivery dates, our learning or our lessons was that the factory production site and the people in the distributorship and the dealers and the suppliers, we all were unified. We became one team. That was the biggest benefit and so we were able to share our own pains and headaches. And then we were able to talk about what each person can do or each member can do to improve the situation for others.

我可以談談積壓嗎？通過更長的交貨日期，我們的學習或教訓是工廠生產現場和分銷人員以及經銷商和供應商，我們都是統一的。我們成為了一個團隊。這是最大的好處，因此我們能夠分擔自己的痛苦和頭痛。然後我們可以討論每個人或每個成員可以做些什麼來改善他人的處境。

And in Japan, the backlog, the orders received as of the end of April was a little more than 800,000. But amongst our customers, those -- against those customers who request delivery by the end of April, we were not able to deliver on 10% of those 800,000 units. So we were asking the dealers to ask the customers when they want the delivery they buy. So we will manufacture to the needs of customers who are in a hurry and we're now finally able to enter that sort of process.

而在日本，截至 4 月底收到的積壓訂單略多於 80 萬。但在我們的客戶中，對於那些要求在 4 月底之前交付的客戶，我們無法交付這 800,000 件中的 10%。因此，我們要求經銷商詢問客戶何時需要他們購買的送貨服務。因此，我們將根據趕時間的客戶的需求進行生產，我們現在終於能夠進入那種過程。

And in the United States, in the past, the cars were all showcased in large dealerships and the customer can pick and choose and then drive home with a car. But a dealer had to, of course, bear the interest rate because of this. But because of the longer delivery date today, from Japan or the U.S. factory, while the car is being transported into the dealership, the cars are already being sold during its transportation.

而在美國，過去汽車都是在大型經銷商處展示，客戶可以挑選，然後開車回家。但是經銷商當然不得不因此承擔利率。但由於今天的交貨日期更長，從日本或美國工廠，當汽車被運往經銷商處時，汽車在運輸過程中已經在銷售。

So we're able to deliver cars fresh off the production line in a sense of our inventory. So as I said at the outset, we became one unified team. And as a result, we came up with many new ideas, fresh ideas and many ingenious ideas, which had helped us to alleviate the longer delivery dates. So we want to continue with improvements at this space so that the customer, suppliers and the dealers, they can all enjoy delivering even better products to our customers. So we want to further improve on these kinds of processes. So we ask for your support.

因此，從我們的庫存來看，我們能夠交付剛下線的汽車。所以正如我一開始所說，我們成為了一個統一的團隊。結果，我們想出了很多新點子、新鮮點子和很多獨創性的點子，幫助我們減少了較長的交貨期。因此，我們希望繼續在這個領域進行改進，以便客戶、供應商和經銷商都能享受為我們的客戶提供更好的產品。所以我們想進一步改進這些流程。所以我們請求你的支持。

So you say domestically, it's 800,000 units backlog? How about overseas?

所以你說國內是80萬台積壓？海外呢？

Well, overseas, the definition of backlog is different by region. So if I try to give you a number, it could lead to some misconceptions. It could be misleading. I'm sorry. So I hope that you will use the domestic number.

那麼在海外，積壓的定義因地區而異。所以如果我試圖給你一個數字，它可能會導致一些誤解。這可能會產生誤導。對不起。所以我希望你使用國內號碼。

Thank you, Tanigawa-san. It is time to close the Q&A session. With this, we conclude the financial results meeting. Those on the stage, please stand up. Thank you very much for coming today. So off the stage. Thank you very much.

謝謝你，谷川先生。現在是結束問答環節的時候了。至此，我們結束了財務結果會議。台上的請起立。非常感謝你今天的到來。所以下台了。非常感謝。