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，非常感謝各位今天蒞臨。現在我們正式開始截至2023年3月的年度財務表現會議。我是公共關係部的艾莉，今天我將擔任會議主持人。

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

在公佈財務表現之前，我們的社長佐藤浩二先生有幾句話要說。佐藤先生，請您發言。

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.

我是佐藤浩二。在公佈財務業績之前，我想先說明一下4月28日公佈的大發汽車程序問題的最新情況。自公佈以來，我們已委託獨立的第三方審核機構對相關車輛進行了複檢。複檢結果再次確認，相關車輛不存在任何品質或安全問題。基於複檢結果，並經與相關部門協商，我們已恢復向馬來西亞、墨西哥和厄瓜多爾出口豐田品牌車輛。至於泰國和中東國家，我們將繼續與相關部門協商。

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，豐田董事長親自前往泰國，向我們的客戶和利益相關者解釋了事件經過，並向他們保證車輛安全，同時強調我們整個集團致力於防止此類不當行為再次發生。大發和豐田正從各個方面核實情況，以防止類似事件再次發生。豐田是一家所有成員在遇到問題時都會立即採取行動的公司。我們會深入調查問題的根源，找到問題所在，並結合改進措施，努力防止類似事件再次發生。我們將繼續調查問題的根本原因，因為我們認為改變此類不當行為發生的環境至關重要。我們將隨時向您通報調查進度。

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。現在我們請執行副總裁兼財務長宮崎洋一先生為大家介紹財務表現。

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.

我是財務長宮崎，這是我第一次擔任這個職務，請各位多多包涵。在向大家公佈財務表現之前，我們衷心感謝全球選擇我們的客戶、股東、經銷商、供應商以及所有在日常營運中支持我們的利害關係人。非常感謝！

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.

讓我來總結一下截至2023年3月的財年財務表現。儘管由於半導體供應緊張、自然災害和新冠疫情等因素，我們的生產受到了一定限制，但經銷商、供應商以及生產基地都竭盡全力，盡可能多地向客戶交付車輛。雖然由於原物料價格飆升等因素的影響，我們的實際營業收入較上一財年有所下降，但由於我們持續努力改善利潤結構，最終業績仍超出預期。

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.

展望下一財年，我們預計產量將達到1,010萬輛，所有地區的銷售量也將有所成長，這得益於半導體供應的改善和各生產基地的努力。我們將繼續推進碳中和進程，並優化產品結構。同時，在不放緩成長投資的前提下，我們將積極推動各項舉措，以期改變汽車的未來。

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.

在股東回報方面，為了回饋長期股東，我們制定了新的股利政策，旨在穩定且持續地提高股利。我們更重視股息支付，以提升股東回報。年末股利為每股35日圓，較上一財年增加7日圓。全年股利總額為每股60日圓，較上一財年增加8日圓。關於年末股票回購，我們將根據股價水準等因素彈性調整回購規模，最高回購額為1,500億日圓，與中期回購額相當。

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，讓我來總結一下截至2023年3月的財年業績。該期間的合併汽車銷量為882.2萬輛，年增107.2%。豐田和雷克薩斯品牌汽車銷量為961萬輛，較去年同期成長101%。從各地區的汽車銷售來看，所有地區的銷量均較上一財年有所成長。此外，電動車的比例達到29.6%。合併財務績效為：銷售收入371542億日元，營業利潤27250億日元，稅前利潤36687億日元，淨利潤24513億日元。

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利潤同比變動的因素。首先，匯率波動使營業利潤增加了12800億日圓。其次，成本削減自然使營業利潤減少了12900億日元，原材料價格飆升造成的15450億日元損失中，除了原材料市場波動外，還包括為加強整個供應鏈結構而開展的5000億日元活動。第三，行銷活動使營業利潤增加了6,800億日圓。第四，費用增加使營業利潤減少了5,250億日圓。最後，由於掉期估值損失和終止在俄羅斯的生產成本，我們也遭受了4,156億日圓的負面影響。因此，剔除匯率波動、掉期估值損益和其他因素的整體影響後，營業利潤較去年同期減少了11,350億日圓。

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.

現在讓我解釋一下各地區的營業收入。儘管原物料價格飆升造成了負面影響，但由於匯率波動，日本的營業收入年增了4,770億日圓。北美地區的營業收入則是年減了4,578億日圓，主要原因是原物料價格飆升。

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，受原物料價格飆升以及儘管行銷努力取得積極成效，但仍需承擔在俄羅斯停產的成本影響，歐洲市場年減1,150億日圓。亞洲市場年增557億日圓，主要得益於匯率波動和銷售成長。其他地區較去年同期成長367億日圓。

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.

下一張投影片，我將介紹我們在中國的業務以及金融服務業務。關於我們在中國的業務，雖然合併子公司的營業利潤同比下降，主要原因是匯率波動和銷售量下降，但採用權益法核算的投資收益份額同比增長，主要得益於成本削減措施。關於金融服務業務，由於匯率波動的影響，本財年的營業利潤年增。

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，我想談談我們對股東的回報。為了回報長期股東，我們取消了以往30%的合併股利支付率指引，轉而調整了股利政策，力求穩定持續地提高股利。因此，我們更加重視股息支付。本財年的年末股利為每股35日圓，較上財年增加7日圓。加上25日圓的期中股息，本財年全年股利總額為每股60日圓，較上財年增加8日圓。

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，我們根據成長投資、股利水準和現金儲備等因素進行股票回購。然而，我們已修訂政策，將根據股價水準等因素彈性調整回購策略。對於年末回購，考慮到當前股價水平，我們設定了1500億日元的上限，與中期回購規模相同。

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。我們預計產量為1,010萬輛，是上一財年的110.6%。上一財年產量預測上調的原因如下：鑑於未來的供應風險，我們一直在研究各種替代方案，並致力於提升工廠的營運效率。自3月以來，我們已在確保安全和品質的前提下，維持了高水準的生產。然而，在各地區的銷售點，產量仍無法滿足顧客需求。因此，我們將繼續與供應商攜手合作，推動改善措施，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960萬輛，年增108.8%。隨著半導體供需改善，我們預計所有地區的銷售都將成長。豐田和雷克薩斯品牌汽車銷售預計為1,040萬輛，較去年同期成長108.2%。我們預計電動車銷量為384.3萬輛，年增134.9%，其中電動車佔比預計為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。我們採用全年匯率假設，即1美元兌125日圓，1歐元兌135日圓。基於此，我們全年合併財務表現的預測為：銷售收入38兆日圓，營業利潤3兆日圓，稅前利潤3.69兆日元，淨利2.58兆日圓。

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利潤的因素。首先，匯率波動將導致營業利潤減少8,750億日圓。其次，成本削減措施預計將使利潤增加3,600億日元，而原料成本下降預計將導致利潤減少5,100億日元，兩者合計將使利潤減少1,500億日元。第三，由於半導體供需改善，銷量增加和產品組合優化，行銷活動將使營業利潤增加12850億日元，而其他費用預計將減少2600億日元。

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日的上一財年相比，由於我們長期以來堅持以產品為中心、以區域為中心的策略，我們得以透過降低GPS成本和加大行銷力度來抵銷原物料成本飆升的影響。同時，我們也為持續增加成長投資奠定了基礎。我們身處一個沒有標準答案、未來充滿不確定性的時代。因此，我們將始終保持警惕，謹慎管控風險，以應對商業環境的變化。

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

我們的演講到此結束。非常感謝。

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

謝謝。現在我們想請總裁佐藤浩二先生再次發言。

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.

再次向大家介紹一下，我是佐藤浩治。正如宮崎先生剛才所提到的，儘管面臨嚴峻的商業環境，包括原物料價格飆升，我們在上一財年仍實現了2.7兆日圓的營業利潤。我們的新管理團隊已於4月1日正式上任。然而，上一財年的財務表現是基於前任社長豐田章男14年的努力，這讓我再次深刻地意識到，我們此次管理層更迭發生在豐田高速發展時期。因此，新管理團隊將能夠在此基礎上，專注於成長領域的策略性舉措。豐田章男在就任社長時曾說過，成長的真諦在於能夠不斷變革自身，以因應顧客和社會不斷變化的需求。我相信，他擔任社長的14年正是對這理念的完美詮釋。

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.

現在他擔任董事長，能夠更好地支持我們的新管理團隊。我們將實施新的團隊管理模式，董事長和總裁將同時工作，並根據最佳的職責劃分隨時開展工作。我們的團隊將充分利用這種環境，提高管理效率。

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.

有鑑於此，我想再談談我們未來的經營理念。我認為，豐田未來發展的目標應該是創造一個全新的未來：汽車產業透過與其他眾多產業合作，提升自身附加價值，轉型為行動旅遊產業。而實現這目標的基礎是碳中和。豐田的目標是到2035年，在全球範圍內將新車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，我們將繼續以更快的速度提供區域最優解決方案，並堅持多路徑策略。對於發展尤為迅速的純電動車（BEV），我們已設定目標，到2026年實現150萬輛的銷量，併計劃推出涵蓋豪華車、緊湊型車和商用車等10款車型，主要面向美國和中國市場。

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.

關於電池供應，我們將透過提升內部產能並與合作夥伴合作，盡快確保所需的電池量。我們計畫於2026年推出的新車型將基於三大全新平台打造：車身及底盤平台、電子平台和軟體平台。我們將對這些平台進行全面升級，旨在透過採用純電動車獨有的合理結構，實現全新的車輛佈局，從而推動出行方式的變革。今後，我們將成立專門的純電動車工廠，引領相關舉措，並加速推進各項計畫。我們計劃在今年秋季的日本移動出行展上展示相關概念車型。同時，在推動純電動車計畫的同時，我們也將加快推進氫能社會的建設。

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.

我們將推進商業領域的項目，尤其是在歐洲和中國，這兩個國家對氫的消耗量特別高，主要集中在燃料電池電動車領域。此外，我們將重點放在氫能作為個人交通工具的應用，以及氫的生產、運輸和使用循環，並將開展社會基礎設施建設活動，包括在泰國實施社會計畫。

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，我們將提升近期獲利能力，尤其是在預計到2030年將成長30%以上的亞洲和新興市場。我們將專注於混合動力電動車，以掌握市場成長機遇，從而鞏固獲利基礎。為將汽車產業轉型為移動出行產業，我們將進一步增加目前約3兆日圓的研發投入和資本投資，同時提高未來投資比例，以實現永續成長。

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.

接下來是問答環節。請稍等片刻，我們正在佈置舞台。謝謝。現在，問答環節正式開始。請各位提問者上台。我來介紹一下台上各位成員：社長佐藤浩二；執行副總裁兼首席技術官中島弘樹；執行副總裁兼首席財務官宮崎洋一；首席傳播官永田淳；首席會計官山本正弘。請各位上台就座。

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.

現在我們準備接受提問。如果您有任何問題，請舉手示意，然後等待麥克風。為了讓盡可能多的人有機會提問，請每人提問不超過兩個問題。第三位──也就是前排第三排的那位──請舉手。

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?

我來自讀賣新聞社，名叫山內。我有個問題想問佐藤社長。第一個問題是，您如何總結整體財務表現？有哪些亮點？哪些方面您高度評價？哪些方面您認為低於標準或不盡人意？身為社長，您對此有何看法？

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獲利結構。從營業利潤的組成來看，外匯市場和原材料價格飆升等外部環境因素對業績產生了顯著影響。那麼，成本削減等方面的成長又如何呢？我認為這些因素也對業績產生了影響。身為總裁，您打算如何提升公司的基本獲利能力？

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.

感謝您的提問。第一個問題是關於我對財務表現的總結或印象。就短期財務表現而言，我們實現了2.7兆日圓的營業收入，我認為，就我們的獲利能力而言，這比去年同期有所提高。我相信您也意識到，外匯波動以及原材料價格飆升的影響，實際上透過各種努力改善了我們的經營狀況，最終取得了不錯的營業利潤。

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，今年汽車製造和交付給客戶是一項非常艱鉅的任務。然而，我認為財務表現表明，在這一過程中，我們克服了這些困難，運用了各種巧妙的策略和方法，而且財務業績中包含的諸多因素也表明了我們有能力繼續保持良好的財務狀況。

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.

此外，例如，生產計劃波動幅度很大，但供應商的靈活應對以及公司內部生產人員的努力也至關重要。為了滿足客戶需求，我們透過改善生產流程等方式，力求讓客戶滿意。我認為所有這些努力都促成了最終的財務表現。因此，短期內，儘管面臨許多困難，我認為仍有很大的提升空間，而我們也已經啟動了相應的改進措施。以上就是財務業績所反映的。

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，經濟環境已經持續多年處於通貨緊縮狀態。正是在這種背景下，我們從事以汽車和我們自身產品為中心的製造業。因此，如果你從10到20年的時間跨度來看，不僅在國內，例如在美國，考慮到激勵性支付，我們能夠提高我們產品的市場競爭力。

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，我們不會把汽車變成普通商品。我們必須提供良好的附加價值，發展出深受客戶喜愛的強大業務。多年來，我們一直為此努力，最終取得如此豐碩的成果。儘管面臨嚴峻的經濟情勢和供應限制，我們仍然成功地建構了一個能夠應對這些逆境的企業架構。

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，無論短期或長期，我認為財務表現都表明，經過多年的努力，我們已經能夠加強公司凝聚力。至於利潤結構——我認為，這在很大程度上——正如我在第一個問題中提到的，因為我們將以產品為中心進行運營，所以我們首先要做的是開發高品質的汽車並將其交付給客戶。關於供應問題，我們看到供應限制正在改善。正如我之前提到的，我們已經設定了一些汽車銷售預測，這些預測必須實現。此外，我們還將提高產品的吸引力，以提高獲利能力。以上是基本要點，但回歸這些基本要點非常重要。

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.

透過這種方式，我們可以有效抵禦外匯波動或原物料價格飆升等風險（當然，這些都是不確定因素），從而增強自身抵禦風險的能力。此外，我們是一家全球性企業，在全球範圍內開展業務。因此，穩定利潤結構的關鍵不在於專注於特定地域，而是建構一個能讓我們在所有地區和區域中獲利的企業基礎。面對各種風險，我們必須靈活應對各地區的良好管理，以建立非常穩定的利潤結構。我認為這對於建立一個能夠抵禦外部因素影響的企業管理系統至關重要，同時我們也必須打造強大的全球產品組合。我們相信，透過這些努力，我們可以增強自身的財務實力。

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

現在我們來看下一個問題。坐在前排第三排的人。

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?

我是來自Newspeak的Hiroaka。今年，如果沒有零件供應限制，我相信產量會上升。但就豐田而言，你們一直專注於日本本土生產。佐藤先生，您對國內生產有何看法？你們有可能恢復到300萬輛的產量嗎？如果電動車更多，我相信零件的使用情況會有所不同。那麼，你們與供應商的溝通狀況如何？

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?

其次，如何獲利以及如何確保產品成為大宗商品至關重要。你們有很多獲利的車型，這是競爭力的來源。但同時，包括這款車型在內的所有車型，你們是否都在努力實現所有車型的獲利？

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。對TMC來說，國內生產是保護日本製造業的起點。因此，我們不會動搖這個立場。我們將始終考慮如何保護日本製造業。至於電氣化，零件的使用將會發生變化，包括與供應商的交易，我認為我的預測是這樣的，這應該是你的第二個問題。

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，電氣化必然會導致零件使用方式的改變。但另一方面，供應鏈不僅僅是業務的一部分。每個參與者都有自身的優勢，我們彼此尊重，視對方為合作夥伴。基於此，我們在汽車製造領域與他們開展業務。因此，每個供應商都有其自身的優勢。即使零件發生變化，每項技術都有其獨特的優勢，有些供應商在特定領域也擁有優勢。所以我們會與他們合作，並溝通我們想要生產的車型。我們會比以往更早進行溝通，我們希望逐步建立一個能夠充分發揮彼此優勢的商業模式。

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.

您的下一個問題是，我們應該如何確保汽車不會淪為普通商品。正如您所提到的，混合動力技術是我們的優勢之一。正如我在演講中提到的，新興國家是我們的成長領域之一。在這些國家，減少二氧化碳排放勢在必行，同時，我們的需求也預計會成長。因此，對於混合動力汽車而言，確保獲利至關重要，我們需要與當地社區緊密合作，才能持續改進汽車。另一方面，我們採取多元化發展策略。這意味著我們不會專注於特定領域。我們會分析每個地區或地理區域的特點，並提供更適合當地市場的產品。

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，所有車型我們都需要提供具有豐田特色的車輛。我們正在研究如何提供純電動車以及其他各種車型，使其具有其他汽車製造商的特色。所以，這不只是動力系統的改變。我們也會關注這一點。建立新的純電動車工廠組織架構的目的就在於此，我們希望打造出極具吸引力的電動車。

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.

還有一點。在國內生產中，不僅要追求產量，還要透過各種供應鏈來實現獲利，對吧？所以我們不能只關注豐田汽車公司（TMC）。我們還有供應商。因此，我們希望與供應商合作，改變車輛的特性。過去，硬體佔車輛價值的大部分，那是過去的情況。但現在，我們有了軟體，而且售後升級和客製化也成為可能。所以，我們希望確保車輛能更好地滿足客戶的需求。這不僅僅是汽車製造商的責任。我們必須與眾多供應商合作，充分發揮自身優勢，才能真正改變出行方式。

Next question, and the person at the very front.

下一個問題，問最前面的那位。

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。一個是關於電動車的生產，另一個是關於利潤結構。關於生產，你們似乎計劃在本財年實現創紀錄的產量。是這樣嗎？你們打算如何達成這個目標？晶片危機是否即將結束？你們是否有新的方法來確保足夠的晶片供應？或者說，晶片危機自然會結束？你們如何將產量提升到新的紀錄水準？

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年後的純電動車（BEV）利潤結構。目前，你們的營業利潤率約為7%。但到了2026年，你們計劃推出一個新平台，該平台成本更低，週轉時間可能更快，並且還能透過軟體方面開闢新的收入來源。您認為2020年代後半期的獲利能力與現在相比會如何？會更高嗎？我們通常認為電動車價格更高，利潤率更低，但也許情況恰恰相反，這將是利潤率大幅提升的轉捩點。

(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，我想先回答一下。我認為，就第一個問題而言，上個季度我們希望盡快滿足客戶的需求，但未能如願。因此，我們列出的數據是生產基地對客戶需求的反應以及我們未來計劃推出的產品的綜合體現。

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.

所以關於這一點，我們認為可以設定1010萬輛的基準產量，正如之前提到的。至於這1010萬輛的目標，正如韓先生之前所問的，我們打算如何實現，因為我們去年的生產非常困難。這大概就是您問題的關鍵。

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.

但一年前，我們根本無法預知哪些半導體晶片會在某個時間點出現短缺。正如佐藤所說，元件突然短缺，我們不得不違背計畫削減產量。這種情況去年一直持續。但我們希望讓這些高風險半導體晶片清晰可見。一旦我們掌握了這些訊息，就會調整設計，尋找替代貨源，供應商也會積極銷售非高風險半導體晶片。透過這些努力，一年多來，雖然情況並非完美，但我們管理半導體供應的能力已顯著提升。

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，我們認為1,010萬輛是新的基準銷量，這是一個切實可行的數字。我們追求的是客戶滿意，為此，我們希望生產基地和各區域的每一位員工都能與客戶建立良好的溝通和關係。正是由於我們對產品和生產的專注，我們才能實現1,010萬輛的目標銷售量。正如您所說，我們的基準銷售將創下汽車銷售的新紀錄。

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，請允許我回答第二個問題，韓先生，謝謝您的提問。 2026年後，我們計劃推出下一代純電動車。正如先前在政策會議上所解釋的，關鍵在於如何降低成本。我認為這是一個非常重要的方面。您也知道，純電動車的電池成本在總成本結構中佔比很高。因此，如何開發或設計一款能夠最有效地利用電池能量的汽車至關重要。透過純電動車的研發和生產，我們累積了許多經驗，我們希望將這些經驗應用到下一代純電動車的生產中。下一代純電動車必須對工廠本身進行變革。所以我們目前正在討論這一點。

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，製造流程本身將徹底改變。這不再是簡單地將引擎安裝到車身上，然後再組裝零件，而是一個全新的、經過改進的流程。例如，透過這些大幅度的改進，將整條生產線縮短一半或提高生產效率，我們希望降低成本，也就是製造成本，因此如何降低成本成長將是關鍵因素。

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.

正如韓先生所說，另一個因素是純電動車的附加價值必須提升。我認為這體現在智能化上。智能化至關重要。一些極具吸引力的軟體能夠提升產品價值，而這些只有純電動車才能實現。我們相信，這能夠提升客戶的體驗價值。因此，我們剛剛發布了關於新組織架構和新團隊成員的消息。這些成員曾在中國學習，他們將致力於開發新型純電動車。我們剛剛啟動了這個團隊的工作。我希望大家能夠繼續支持他們未來的工作。

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

那麼，2020年代後半期的獲利水準會如何呢？會與目前水準持平還是更高？

(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，我們不僅會推出純電動車，還會透過多種管道交付各種電動化車型。我們希望確保與目前相同的獲利水準。我們之前也說過，可能會遇到各種困難，但我們希望為客戶提供更優質的汽車。我們相信，透過朝著這個目標努力，我們最終能夠實現獲利目標。

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

現在回答下一個問題。坐在前排第五排的人。

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的山中先生，我有兩個問題。第一個問題是關於1010萬輛的產量數字。你們的目標並非追求銷量，對嗎？這是我的第一個問題。第二個問題是關於中國市場的業務。宮崎先生去年說過，銷售下滑，新能源車市場成長迅速，日本汽車製造商在中國市場面臨挑戰。那麼，豐田汽車公司，您如何看待中國市場的現況？中國市場被譽為全球最大的市場。您對未來的發展前景有何展望？

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.

非常感謝您的提問。銷量預測為1010萬件。正如宮崎先生所說，我們需要足夠的生產和銷售能力來滿足市場需求，從而滿足客戶的需求。歸根究底，我們需要贏得客戶的青睞。只有這樣，我們才能實現這個目標。宮崎先生將專門討論中國市場的業務。

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。回顧去年的業績，我們未能獲得足夠的半導體供應。而中國市場特有的問題是，從年初就受到了新冠疫情的影響。因此，需求時有下降。

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.

所以去年雷克薩斯從日本出口到中國的銷售量下降。但是，正如您所知，我們在中國也有本地業務。因此，如果您縱觀整個中國市場，雖然去年我們的銷量與前一年相比有所下滑，但我們在中國市場的份額卻穩步增長。

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.

很多人只關注純電動車市場。但在中國，除了純電動車，還有混合動力車和多用途乘用車（PATV）。我們的許多客戶都在使用這些車型。去年，我們的市佔率成長到了9%左右。因此，市場競爭依然非常激烈。然而，我們會繼續努力，研發能夠吸引中國消費者、滿足他們需求的車款。最終，我們將為此付出努力，以期實現業務成長。

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.

我想補充一點。中國的產品競爭力，或者說產品本身以及市場，都在快速變化。正如我們在上海車展上提到的，我們致力於及時提供深受中國消費者喜愛的車款。因此，我們在中國設立了研發基地，並努力實現研發本土化，以便在更貼近消費者的地方進行研發，以便更能滿足中國市場的需求。

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

還有其他問題嗎？我想，又是前排那位。

[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?

【TDS的梅田】我有兩個問題，都與純電動車有關。第一個問題是問執行副總裁中島先生的。您剛剛介紹了純電動車以及您對中國純電動車市場的看法。能否更具體地談談？您去了上海車展，我想從「現地現物」的角度來看，親臨現場了解情況是明智之舉。您對中國市場轉型為電動車有何看法？豐田－您認為在產品開發上有哪些不足之處？為了更好地適應中國市場，您需要做出哪些改變？能否具體談談這方面？

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.

第二個問題是問佐藤會長。上個月您宣布了電池電動車的中期目標，即150萬輛的銷量，您表示本屆任期內將投入3兆日圓用於電池電動車的研發。那麼，為了實現這些目標，您打算在允許的範圍內具體採取哪些措施呢？

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.

謝謝您，（外語）。那麼，我們先回答第一個問題。正如您所說，我們去了上海車展，坦白說，我感到非常驚訝，純電動車的電氣化進程發展如此迅速，不僅如此，這似乎已經成為一種常態，而且通過增加智能功能來實現差異化和競爭的速度也遠遠超出了我們的預期。

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，中國客戶的需求是什麼？如何及時滿足他們的需求，例如資訊娛樂系統、數位座艙、座艙開發等等？如果我們在日本進行開發，耗時太長。因此，我們希望加快在地化進程，同時也希望獲得本地供應商的合作，以加快我們的工作。

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，150萬輛並非一個具體的目標，而是我們希望努力達到的基本銷售標準。正如我所說，不僅是豐田，許多供應商和經銷商都會攜手合作，共同轉型為純電動車。因此，我們必須引領潮流，並向其他廠商展示我們的步伐。這就是我們的觀點。在此背景下，正如我之前提到的，我們首先必須打造一套完善的產品陣容。目前，我們已經推出了多款純電動車車型，並收到了大量的市場回饋。因此，我們希望以某種方式提升我們的行銷能力和產品研發能力。

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.

續航里程和充電時間至關重要，這方面確實存在需要改進的地方。因此，我們希望加快提升產品行銷能力的腳步。同時，我們也希望像豐田一樣，積極推動「改善」（Kaizen）項目，吸引更多人選擇豐田純電動車。我們必須打造一套不會讓消費者失望的產品陣容。

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，中國和美國將是核心市場。因此，我們不僅要提供豐田貸款，還要與合作夥伴攜手，提供完善的產品陣容以滿足客戶需求，同時開發和提供具有豐田特色和獨特吸引力的產品。

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

非常感謝梅田先生，就是坐在中間走道上的那位先生。

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.

我是朝日新聞的[Narabi]。我有兩個問題。第一個問題是關於物料成本的儲存。你們正在對零件價格和供應商提供支持，包括支付公用事業費用。目前，你們只直接支援一級供應商，但你們也有二級或三級供應商。這些二級或三級供應商目前的狀況如何？我們了解到，目前物料成本儲存的影響高達5,100萬日圓。那麼，有多少支援流向了供應商？接下來，我想問的是，你們會繼續提供哪些支援。

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.

我的第二個主題與佐藤先生一開始提到的有關，那就是關於大發汽車的。在汽車業，有供應商，也有經銷商。很多人都參與其中。正是這些人通力合作，造就了整個產業的強大實力。

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?

而這可能演變成一種壓力，例如無法更改計劃，有些人認為這可能是問題的根源。佐藤先生，您提到開發環境可能有問題。您也談到了營造一個可以暢所欲言的優質環境，以及創造一個人們可以自由交流的環境。您即將著手解決召回問題，那麼您目前對公司治理和企業文化持何立場？

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.

非常感謝您的提問。您第一個問題是關於物料成本的儲存。我們一直與供應商保持密切溝通，直接與一級供應商對接。如果您查看相關數據，您會發現銷售價格的變動和採購成本的調整都是可以預見的。

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，你會發現很多人意見不一，我們仍在努力改進。但我們的目標是保護供應鏈，以便我們能夠渡過目前的難關。因此，我們希望繼續與供應商對話，並繼續推動我們正在實施的各項措施。

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情況。整體而言，原物料價格已開始趨於穩定。部分原物料的價格也開始下降。但尤其值得注意的是，日本的公用事業費用在過去一年持續上漲，今年仍居高不下。因此，我們需要繼續與供應商就此問題進行溝通。所以，除了TMC和供應商之外，日本汽車製造商協會（JAMA）以及整個汽車產業也必須共同應對這個問題，而且他們實際上也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.

您的第二個問題是關於大發汽車的問題。我想談談我的想法。關於這個違規行為，它與我們的認證或碰撞安全有關。這種違規行為本身不應該發生，但它確實發生了，這意味著肯定有根本原因。

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.

所以，如何找出根本原因並消除它是我們必須解決的問題。把責任推卸給別人並不能解決問題。我們身處汽車產業，這個產業有其自身的規章制度，我們在這個產業生產汽車。不應該有人故意違規，但確實發生了，這意味著其中可能存在一些環境因素。涉事車輛是供客戶使用的，我們必須確保不會對客戶造成任何不便。因此，我們需要找出究竟發生了什麼事。

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.

首先，我們需要找出問題所在。其次，我們需要向相關各方解釋。事實上，我們已經向相關各方解釋過，並開始採取措施確保此類事件不再發生。還有一點我們認為很重要：這類問題的根源並非在於某個特定個人。

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.

存在某種機製或環境迫使這個人做出不當行為。我們需要深入現場，反覆討論，確保人們暢所欲言，我們需要繼續對話，設身處地思考和理解事情發生的原因。目前的情況必須準確地傳達給更多人。我們需要消除疑慮，確保心理安全。

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，豐田會長前往了泰國，泰國既是目標車型的生產國，也是其主要市場。豐田先生此行與眾多利害關係人進行了面對面的會談。永田先生當時也陪同豐田先生前往泰國。關於豐田公司如何應對這一問題，永田先生將作相關闡述。

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。我叫永田。前天，也就是星期一，我和董事長一起去了泰國，主要是為了說明雅力士Ativ是在泰國生產並出口的。泰國是雅力士Ativ的重要市場。所以，我們很清楚這款車的安全性。因此，我們希望向客戶和利害關係人傳達這款車的安全性訊息。

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，豐田作為門戶工廠負責生產這款車。而大發則負責我們的研發基地，即TDEM。 TDEM的成員——其中許多人來自大發——都參與了生產。因此，無論是車輛生產人員還是TDEM成員，都非常關心並擔憂事情的真相。

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.

所以，目前的情況是這樣的：車輛是安全的。正如佐藤先生所說，豐田是一家一旦發現問題就會立即停止一切活動，並努力找出根本原因，直到找到問題所在並採取相應措施的公司。豐田會不斷重複這個過程。而且，豐田是一家鼓勵員工暢所欲言的公司。因此，我們需要將這些資訊傳達給泰國的各方，包括車輛生產商、TDEM開發人員和經銷商。我們希望將這些資訊傳達給所有利害關係人。

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.

正如您所說，在團體治理方面，我們希望確保營造出暢所欲言的文化氛圍。我們需要運用現地現物（genchi genbutsu）的原則來找出問題的根本原因。這是我之前向您學習到的。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.

我們現在想聽聽網路記者的提問。所以，我們想藉此機會回答彭博網路記者們的提問。彭博社的稻島先生，我們這就切換到您的螢幕。如果您在螢幕上看到自己的臉，請開始提問。

Hello, can you hear me?

你好，你聽得到我說話嗎？

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.

我是彭博社的稻島先生。我也有兩個問題。一個是關於股利和股票回購。關於股息，你們會穩定且持續地提高股息。至於股票回購，你們會靈活地進行回購，並專注於股價水準。那麼，你們是如何進行股票回購的呢？說到股價水平，你們會以1倍本益比（PBR）為標準嗎？這會是股票回購的考量因素之一嗎？還是你們內部還有其他標準？如果股價低於內部標準，你們會減少股票回購規模嗎？

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?

其次是佐藤，佐藤社長談到了移動出行展，並提到你們將在展會上展示一款純電動車概念車。那麼，你們計劃在2026年推出的下一代純電動車概念車，也會在秋季的移動出行展上亮相嗎？是這樣嗎？

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.

感謝您的提問。是的。關於股利和股票回購，正如我們先前解釋的，我們的主要政策是調整這兩項政策的實施方法。這一點我們之前也已經向您傳達過。正如我們之前所說，先前在股利方面，我們的保單標準是合併派息率不超過30%。但是，為了讓股東滿意，為了讓股東獲得更多回報，我們內部進行了討論，最終決定將股息穩定持續地提高作為一項新的修訂政策。

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計劃，當然，這取決於股價水平，但正如我們一直以來所強調的，我們的主要政策是保持靈活。因此，我們會靈活地判斷股票回購的絕對價值。但我們修訂後的主要政策是更重視分紅，而不是股票回購。

Anything to add, Chief Officer Accounting group.

首席會計官，還有什麼要補充的嗎？

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.

我們將關注股票回購的股價水平，目前的股價水平遠未達到我們的預期。市淨率（PB）當然低於本益比（PBR）的1倍，我們對此也不滿意，並且非常重視這個問題。為了證明這一點，例如，我們可以將本益比除以利潤率（PR）和淨資產收益率（ROE）。正如佐藤先生所說，這種移動出行理念，或者說電氣化，以及智能化和更多功能的加入，我們如何才能更精準地將其提供給認同這一願景的客戶？我認為我們必須專注於開發和交付能夠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.

至於淨資產收益率（ROE），這方面比較複雜，但我們要達成這項ROE當然是有目的的，例如在財務或庫存方面。我們身處汽車產業，必須捍衛這個產業，當我們遭遇各種自然災害時，我們必須擁有足夠的資金來維持未來六個月的業務運作。這就是我們發揮的作用。

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.

此外，去年半導體產業減產時，為了保護供應鏈和資產，我們必須維持一定的庫存水準。因此，整個汽車產業必須攜手合作，共克時艱。我認為，部分淨資產收益率（ROE）數據已經包含了這些人為措施的影響。所以我們對目前的業績並不滿意，希望能繼續進步。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.

稻島先生，讓我來回答第二個問題。關於下一代純電動車，我們會在第26屆移動出行展上展示嗎？答案是肯定的。與其長篇大論地解釋，我們認為讓您親眼看看概念模型並提出回饋會更好。因此，我們決定在行動出行展上進行展示。

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.

正如今天公佈的消息，一家名為「BEV工廠」的新機構成立了，佐藤先生將擔任負責人。佐藤先生先前在中國從事純電動汽車的研發工作。讓我來分享一下他的發言。他表示，希望透過這些新一代純電動車改變汽車的未來。他所說的未來，當然是指汽車的未來。這不僅關乎汽車的外形，也關乎汽車智慧化的程度。

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.

第二點是工廠，也就是生產工廠的未來。因此，我們將對製造流程進行徹底變革。此外，我們的工作方式也必須進行大規模的調整，以適應未來發展。

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，集團內部融合了豐田和其他多家創投公司。我們與豐田的創投等機構有著廣泛的聯繫。因此，我們將繼續與不同的合作夥伴、朋友和同事，積極投資這些多元化領域。在明年純電動車的發展規劃中，我們希望思考如何改變未來的願景，以及如何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.

當然，這只是佐藤先生的個人觀點，但我真心希望各位能夠關注——在秋季出行展上觀看我們全新概念純電動車車型的展示。敬請期待。

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

里弗戴維斯先生，我們將回答《華爾街日報》在線提出的另一個問題。

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?

您好，我是《華爾街日報》的里弗戴維斯。我想問兩個後續問題。第一個是關於中國市場。我們聽到許多汽車主管回到日本後都表示，他們意識到中國市場競爭非常激烈，需要找到獨特的策略才能保持競爭力。宮崎先生，您之前提到過混合動力汽車在中國市場的優勢。您認為這會是豐田未來在中國市場獨有的致勝法寶嗎？

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車和獲利能力的。上個月，您多次提到目前混合動力車的利潤率非常高。那麼，在展望2026年和2030年的電動車銷售目標時，您是如何權衡利潤最大化和實現這些目標之間的關係的呢？

(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.

我是宮崎先生。我先回答您的第一個問題。我想談談我們目前以及未來將如何參與競爭。正如中島先生所提到的，我們在車展上看到的情況讓我們感到驚訝。從全球視角來看，中國在電池領域與美國一樣，正在快速發展純電動車。因此，中國也需要製定一套完善的純電動車戰略。

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.

那麼問題來了，考慮到中國市場，我們該如何在純電動車領域競爭？首先，我們需要了解中國消費者的需求，並提供與傳統汽車製造商生產的車輛非常相似的產品。這就是我們進軍中國市場的計畫。當然，中國消費者的偏好可能與歐美消費者有所不同，但中國市場有其獨特的特徵。我們將深入研究這些特點，以提升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.

我們採取多管齊下的策略。中國是一個非常龐大的市場，我們將提供各種產品。而我們必須加強對中國市場的投入，其中一項重點工作就是純電動車。這是我們首要的任務。

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.

我是佐藤先生。我再補充一點。正如宮崎先生所提到的，純電動車在中國市場發展迅速。因此，對於中國市場，純電動車或DMC（可能是指某汽車製造商或公司）將全力以赴。但另一方面，中國對混合動力車的需求也很強勁。純電動車的需求或多或少是新興需求。所以，您問題的一部分是關於混合動力汽車，混合動力汽車是否會成為TMC（可能是指某汽車製造商或公司）的優勢？因此，混合動力汽車和純電動車的需求結構有所不同。所以，我們希望同時開拓這兩個市場，並爭取在兩個市場都保持競爭力。

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

回到這個大廳，又是站在最前面的那個人。

(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.

（聽不清楚）來自朝日新聞。我還有兩個問題。第一個問題是，各大汽車製造商都在轉型為純電動車。豐田的優勢在於混合動力汽車，但展望未來，你們打算如何發展出混合動力汽車呢？

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，即純電動車投資與獲利之間的平衡。各汽車製造商都表示，純電動車投資正成為其獲利的負擔。您曾表示，到2030年，貴公司計劃在純電動車領域投資4兆日圓，您是2021年提出的這個目標。請問您是否更新了這些數據？

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，豐田的電動車業務也是先投資後獲利，所以你們打算如何籌集投資資金？

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。我先回答第一個問題，第二個問題將由宮崎先生回答。關於電池電動車，我們一直以來都在強調，豐田未來將專注於發展電池電動車。但我再次重申，我們的最終目標是實現碳中和，並改變未來的移動方式。客戶的需求日益多樣化，汽車產業的需求也不斷變化，我們希望能夠滿足這些多樣化的需求。同時，我們也希望因應能源需求的變化，提升汽車的價值，並改變汽車的未來。

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，這些都是非常重要的舉措，旨在讓人們對汽車有更高的期望，不僅僅是用電力取代動力系統——例如電動飛機，以及改變汽車的成本結構。但僅憑這一點不足以建構一個可持續發展的汽車產業願景。因此，我們不能忘記最終目標。

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，我們將重點關注純電動車這項解決方案，但我們的目標是改變汽車的未來。憑藉這一堅定決心，我們希望與當地利益相關者共同應對這項挑戰。

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.

讓我回答第二個問題。我們公司宣布的4兆日圓純電動車投資目標當然是基準規模，但我們目前的目標是到2026年達到150萬輛，或許到那時需要2.5兆日圓的投資。此外，到2030年，我們設定的基準規模是350萬輛。

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.

但當我們更新這項計畫時，或許需要大約5兆日圓的投資作為基準——基於價值規模。那麼，在這種背景下，我們打算如何為這項投資融資呢？正如我之前所說，迄今為止，我們一直在努力降低成本，同時積極開展行銷，並透過加強與客戶的關係來提升獲利能力，並已預測今年的獲利能力將達到3兆日圓。

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.

為了實現這個最終目標，我們所追求的利潤結構必須能夠創造新的投資空間。透過這種方式，我們可以為未來的投資提供資金，包括對純電動車的投資。但正如中島先生一直提到的，我們也必須降低純電動車的研發成本。但這確實是一個挑戰，我們目前還沒有找到解決方案。

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.

因此，我們可以進一步推進1000億日圓的成本削減，然後進一步拓展價值鏈，從而增強企業韌性，並打造一個即使面對逆境也能盈利的系統。

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

因此，我們希望透過這些努力為我們的投資提供資金或籌集足夠的投資資金。

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

請問—您剛才提到了5兆日圓的投資。請問──這是指今年，也就是本財年嗎？

Yes. From this fiscal year. Thank you.

是的，從本財政年度開始。謝謝。

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

由於時間有限，我們只回答最後兩個問題。第三排中間的人——在正中間。

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?

我叫卡扎基五郎，新冠疫情期間我成為了記者。當時供應短缺，我們一直強調的是，生產越多，銷售量就越高。那段時間非常特殊。看看競爭對手的業績，他們大幅提價，而且在許多情況下，他們的營業利潤率都非常高。而豐田的業績則恰恰相反，你們似乎並沒有那麼激進地漲價。如果我說錯了，請指正。那麼，你們的退出策略是什麼呢？

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——也曾經有過——總有一天會遇到供過於求、產品難以銷售的情況。所以，你們可能考慮到這一點，才抑制了價格上漲的幅度，我是這麼認為的。那麼，當供應量增加時，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.

非常感謝您的提問。從某種意義上說，當時的供應確實短缺。至於提價，我們認為大規模生產至關重要。我們致力於以實惠的價格為客戶提供高品質的產品，讓客戶滿意而歸。這正是我們管理策略的基石。

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.

短期內，情況非常艱難。因此，我們沒有選擇漲價，而是著眼於長遠。我們需要維繫與客戶之間的信任關係。所以，首先，我們專注於自身努力。正如我之前提到的，在豐田先生擔任總裁的這14年裡，我們擁有卡羅拉、皇冠等眾多暢銷車款。多年來，我們有許多深受顧客喜愛的產品。

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，價格等因素都關係到顧客的期望。所以，不能簡單地根據經濟情勢靈活調整價格。那樣做不利於與客戶建立長期的信任關係。當然，我們必須關注經濟環境，並努力提高獲利能力。

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.

因此，就皇冠而言，我們不能只專注於單一的地面車型，而是需要追求效率，提升產品的吸引力和競爭力，並為產品增值。這正是我們一直在關注的重點。所以，我們要增強產品的基礎實力，提升產品的吸引力。這就是我們所說的以產品為中心的管理。從長遠來看，這將有助於在TMC與其客戶之間建立起互信關係。

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.

當然，當我們提升產品附加價值時，也需要考慮與該價值相符的價格。所以我們需要找到一個平衡點。因此，我們將繼續堅持我們基本的管理策略。這就是我們採取這種方法的方式。

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?

從獲利角度來看，你們在北美似乎舉步維艱，從數據上看來就是如此。新聞報導，原物料價格暴跌導致你們無法提價，但你們的退出策略似乎並非立即提價，那麼未來的退出策略又是什麼呢？

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.

感謝您的提問。在北美，汽車生產和交付一直是我們面臨的挑戰。因此，加快生產恢復是當務之急。從北美的勞動環境來看，就製造成本而言，我們還需要進一步努力改善。基於豐田生產方式（TPS），我們需要採取一系列改善措施，以增強北美工廠的製造實力。

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.

我們需要為北美市場打造強大的製造實力，奠定企業基礎。至於市場方面，我們需要與市場和客戶對話，提出合理的價格。這才是我們處理問題的正確順序。

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.

謝謝您，卡扎基先生。由於時間有限，這只能是最後一個問題了。請問坐在前排中間的那位朋友。

[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?

來自[Invest Car Watch]的[Tanigawa]，我也有兩個問題。你們的銷量有所提升。我認為這主要是由於車輛銷量增加。由於交車週期延長，經銷商與客戶之間的溝通也更加順暢。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。我記得你們之前宣布過訂單積壓接近200萬台。請問目前日本和海外的訂單積壓情況如何？而這些漫長的交貨期何時才能恢復正常？

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.

謝謝谷川先生。關於經銷商溝通延長交貨期的問題，我認為這確實因地區而異。而且日本經銷商的交貨期本來就比較長。

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.

所以他們至少要告訴客戶預計何時交貨，因為我認為客戶最大的壓力或挫折感就在於不了解交貨流程。因此，我們必須向他們提供資訊。經銷商也必須回答他們的問題。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，他們直接從庫存銷售產品。正因為如此，才能確保產品符合客戶需求並暢銷。前提是他們能夠從客戶那裡獲取這些資訊。因此，北美公司掌握了這些數據，可以從經銷商的庫存地點調配產品，然後交付給客戶。透過這些努力，我們這次，也就是本季度，成功解決了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.

至於日本市場，由於所需半導體的類型特殊，我們的日本客戶需要等待更長時間。因此，我想先說明，半導體短缺問題當然正在逐步緩解。我們希望能夠改善與客戶在交貨日期方面的溝通。希望您能持續關注後續的改進情況。

How about backlog, numbers?

積壓訂單數量如何？

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.

可以談談積壓訂單嗎？在漫長的交貨期中，我們學到的教訓是，工廠生產現場、經銷商、經銷商和供應商，我們所有人都團結一致，成為一個團隊。這是我們最大的收穫，也讓我們分擔彼此的困難和煩惱。然後，我們能夠討論每個人或每個成員可以做些什麼來改善其他人的處境。

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.

在日本，截至4月底，積壓訂單略超過80萬件。但對於要求在4月底前交貨的客戶，我們無法交付這80萬件訂單中的10%。因此，我們要求經銷商詢問客戶希望何時交貨。這樣，我們就可以滿足那些急需產品的客戶的需求，現在我們終於能夠啟動這個生產流程了。

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.

過去，在美國，所有汽車都會在大型經銷商處展示，顧客可以自由挑選，然後直接開車回家。當然，經銷商也因此需要承擔利息。但如今，由於交貨週期延長，無論是從日本還是美國工廠，汽車在運往經銷商的途中就已經售出了。

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，我們能夠以庫存的形式交付剛下生產線的車輛。正如我一開始所說，我們已經凝聚成一個團結的團隊。正因如此，我們湧現出許多新穎獨特的想法，這些想法幫助我們縮短了交貨週期。我們希望繼續改善這方面的工作，讓客戶、供應商和經銷商都能享受到為客戶提供更優質產品的服務。因此，我們希望進一步優化這些流程。懇請您的支持。

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

你說國內積壓訂單有80萬輛？海外情況如何？

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.

嗯，在海外，積壓訂單的定義因地區而異。所以如果我給你一個具體的數字，可能會造成誤解，甚至誤導。很抱歉。因此，我希望你能使用國內的數字。

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.

謝謝谷川先生。問答環節到此結束。財務業績會議到此結束。台上各位請起立。非常感謝各位今天的到來。那麼，請各位下台。非常感謝。