豐田汽車 (TM) 2024 Q4 法說會逐字稿

[Interpreted] Ladies and gentlemen, thank you very much for joining us despite your occupied schedules. We would like to start the financial results announcement for the fiscal year ended March 2024. My name is (inaudible) of Public Affairs Department. I will be serving as a moderator.

[解讀]女士們、先生們，非常感謝您在百忙之中參加我們的活動。我們想開始公佈截至 2024 年 3 月的財政年度的財務表現。我將擔任主持人。

First of all, Executive Vice President and Financial -- Chief Financial Officer, Yoichi Miyazaki will explain the overview of the financial results.

首先，財務執行副總裁兼財務長宮崎洋一將介紹財務表現的概況。

[Interpreted] Miyazaki is my name. CFO of TMC. Thank you very much for getting together for this session today. We would like to express a heart-felt appreciation to our customers around the world who chose us as well as our shareholders, dealers and suppliers who support us.

[解釋] 宮崎是我的名字。 TMC 財務長。非常感謝大家今天齊聚一堂參加這次會議。我們衷心感謝選擇我們的全球客戶以及支持我們的股東、經銷商和供應商。

We will now explain the summary of the financial results for the fiscal year ended March 2024. For many years, we have been committed to product and region-based management. Thanks to the support and cooperation of many stakeholders, including employees as well as suppliers and dealers.

現在我們將解釋截至2024年3月的財年財務表現摘要。感謝員工、供應商、經銷商等眾多利害關係人的支持與配合。

The actual operating income was JPY 5.35 trillion for the fiscal year ended in March 2024. The operating income forecast for the fiscal year ending March 2025 is JPY 4.3 trillion after a total of JPY 2 trillion in investments for the future to maintain the profit structure from the previous fiscal year and to increase the attractiveness of the automotive industry as a whole, and to grow together with all stakeholders.

截至2024 年3 月的財年實際營業收入為5.35 兆日圓。日圓的投資。

Investments for the future of JPY 2 trillion includes JPY 380 billion in investment in Human Resources and JPY 1.7 trillion in investments in transforming the company into a mobility company.

2兆日圓的未來投資包括3,800億日圓的人力資源投資和1.7兆日圓的將公司轉型為行動公司的投資。

As for shareholder returns, we will increase the year-end dividend to JPY 45 per share, an increase of JPY 10 compared to the previous year and set the annual dividend at JPY 75, totaling over JPY 1 trillion.

股東報酬方面，我們將年末股利提高至每股45日圓，較上年增加10日圓，年度股利定為75日圓，總計超過1兆日圓。

We set aside JPY 1 trillion as a maximum limit of share repurchases and will cancel 520 million shares equivalent to JPY 2 trillion worth of treasury shares.

我們設定了1兆日圓作為股票回購的最高限額，並將取消相當於2兆日圓庫存股的5.2億股股票。

So let me explain the summary of our performance for the fiscal year ending March 2024.

那麼，讓我來解釋一下我們截至 2024 年 3 月的財年的業績摘要。

Consolidated vehicle sales for this fiscal year was at 9.443 million units, which was 107.0% of consolidated vehicle sales for the previous fiscal year. Toyota and Lexus vehicle sales were 10.309 million units, which was and 107.3% of such sales for the previous fiscal year.

本財年合併車款銷售量為944.3萬輛，佔上一財年合併車款銷售量的107.0%。豐田和雷克薩斯汽車銷量為1,030.9萬輛，佔上一財年銷量的107.3%。

Sales volumes increased except in Japan, which was affected by the suspension of shipments by Daihatsu Motor Company and Toyota Industries Corporation. Also, we increased the sales of electrified vehicles mainly HEVs with electrified vehicles constituting 37.4% of total sales.

除日本外，銷量均有所成長，日本受到大發汽車公司和豐田工業公司暫停出貨的影響。此外，我們也增加了以混合動力車為主的電動車銷量，電動車佔總銷量的37.4%。

Consolidated financial results were sales revenues of JPY 45.0953 trillion, operating income of JPY 5.3529 trillion, income before income taxes of JPY 6.965 trillion and net income of JPY 4.9449 trillion. I would like to explain the factors which impacted operating income year-on-year.

合併財務績效為銷售收入450953億日元，營業收入53529億日元，稅前收入69650億日元，淨利潤49449億日元。我想解釋一下影響營業收入年比的因素。

First, the effect of foreign exchange rates increased operating income by JPY 685 billion, cost reduction efforts outweighed the impact of soaring materials prices, resulting in an increase in operating income of JPY 120 billion. Marketing efforts increased operating income by JPY 2 trillion due to an increase in sales volume of mainly hybrid vehicles, improvement of sales mix due to strong sales in high-margin vehicles and price revisions mainly in North America and Europe.

首先，匯率影響使營業收入增加了6,850億日圓，成本削減力度超過了材料價格飆升的影響，導致營業收入增加了1,200億日圓。由於主要是混合動力汽車的銷量增加、高利潤汽車銷售強勁導致銷售組合改善以及主要在北美和歐洲的價格調整，行銷努力使營業收入增加了 2 兆日圓。

An increase in expenses decreased operating income by JPY 380 billion due to an increase in labor costs and investments in areas such as digitalization. Other factors increased operating income by JPY 202.9 billion. As a result, excluding the overall impact of foreign exchange rates, swap valuation gains and losses and other factors, operating income increased by JPY 1.740 trillion year-on-year.

由於勞動成本和數位化等領域的投資增加，費用增加導致營業收入減少 3,800 億日圓。其他因素則使營業收入增加 2,029 億日圓。結果，排除匯率、掉期估值損益等因素的整體影響，營業收入較去年同期增加1.740兆日圓。

By geographical region, operating income increased in many regions, Operating income increased in Japan year-on-year, mainly due to an increase in exported vehicles. North America, Europe and Asia also saw an increase year-on-year, mainly supported by price revisions based on product competitiveness.

分地區看，多地區營業收入成長，其中日本營業收入較去年同期成長，主要是因為出口車輛增加。北美、歐洲和亞洲也出現年比成長，主要得益於基於產品競爭力的價格調整。

In the mix, the -- our business in China as well as our financial services business, which I will describe here, as for our business in China due to steady demand for HEVs, which is our strength, we have maintained Toyota and Lexus sales volume.

在這個組合中，我們在中國的業務以及我們的金融服務業務，我將在這裡描述，至於我們在中國的業務，由於對混合動力汽車的穩定需求，這是我們的優勢，我們保持了豐田和雷克薩斯的銷售體積。

The operating income of consolidated subsidiaries increased year-on-year, mainly due to marketing efforts, including price revisions, while our share of profit of investments accounted for by the equity method decreased year-on-year mainly due to an increase in selling expenses.

合併子公司營業收入較去年增加，主要是由於價格調整等行銷力度，而權益法會計的投資利潤較去年同期減少，主要是因為銷售費用增加。

Regarding our financial services business, operating income, excluding swap valuation gains and losses for this fiscal year decreased year-on-year, largely due to the decrease in margins.

就我們的金融服務業務而言，本財年的營業收入（不包括掉期估值損益）年減，主要是由於利潤率下降。

I would like to explain shareholders' returns and dividend policies to increase dividends in a stable and continuous manner in order to reward our long-term shareholders. Year-end dividend for the current fiscal year will be JPY 45 per share, a year-on-year increase of JPY 10 compared to the previous fiscal year. As a result, the total amount of annual dividends is over JPY 1 trillion.

我想解釋一下股東回報和股息政策，以穩定和持續的方式增加股息，以回報我們的長期股東。本財年年終股利為每股45日圓，較上一財年年增10日圓。因此，年度股利總額超過1兆日圓。

For share repurchases, we set aside JPY 1 trillion as the maximum limit of year-end repurchase to flexible repurchase of shares while considering factors such as the price level of common stock and to respond to request for the sale of our own shares as needed. In addition, we will retire 520 million shares equivalent to JPY 2 trillion.

在股票回購方面，我們預留了1兆日圓作為年終回購的最高限額，以便在考慮普通股價格水準等因素的情況下靈活回購股票，並根據需要回應出售我們自己股票的要求。此外，我們還將註銷5.2億股股票，相當於2兆日圓。

Next, I will explain the forecast for the fiscal year ending March 31, 2025. the consolidated vehicle sales is expected to be 9.5 trillion units, 100.6% over the previous fiscal year. In Japan, we expect a decrease in sales volume, mainly at Daihatsu. In addition, Toyota and Lexus vehicle sales are expected to reach 10.4 million units, 100.9% of the previous fiscal year. Electrified vehicle sales is expected to be a total of 4.827 million units or 46.4% of total sales.

接下來，我將解釋截至2025年3月31日的財年的預測。在日本，我們預期銷售量將下降，主要是大發。此外，豐田和雷克薩斯汽車銷量預計將達到1,040萬輛，為上一財年的100.9%。電動車銷量預計總計482.7萬輛，佔總銷量的46.4%。

Next, let me explain the full year consolidated financial forecast. We have adopted the full year foreign exchange rate assumptions of JPY 145 per U.S. dollar and JPY 160 per euro. Based on this, our forecast for the full year consolidated financial performance are: sales revenue of JPY 46 trillion, operating income of JPY 4.3 trillion, income before income taxes of JPY 5.070 trillion and net income of this JPY 3.570 trillion.

接下來，我來解釋全年合併財務預測。我們採用全年外匯匯率假設為1美元兌145日圓及1歐元兌160日圓。據此，我們對全年合併財務表現的預測為：銷售收入46兆日元，營業收入4.3兆日元，稅前收入5.070兆日元，淨利3.570兆日元。

So let me try to now reflect a little bit. That is to say, we have been advocating to build ever-better cars and then that we have the -- steadily established a strong profit base through product center management, including groups, strategy based on TNGA and regional centers management, which aims to become the #1 car store in town that is trusted by customers and the local community.

現在讓我試著反省一下。也就是說，我們一直倡導造更好的汽車，然後我們透過產品中心管理，包括集團、基於TNGA的策略和區域中心管理，穩步建立了強大的利潤基礎，旨在成為深受顧客和當地社區信賴的鎮上排名第一的汽車商店。

Furthermore, in promoting electrification, we have been able to strengthen our financial base by investing in BEVs and batteries while carefully assessing each country's energy business and actual demand.

此外，在推動電氣化方面，我們透過投資純電動車和電池，同時仔細評估各國的能源業務和實際需求，增強了我們的財務基礎。

In addition, amidst a difficult environment that continues to push down the profit due to the impact of the coronavirus and the tight squeeze on semiconductors in recent years, we are working hard to transform methods and create new systems.

此外，近年來，由於冠狀病毒的影響和半導體緊縮，在利潤持續下降的困難環境下，我們正在努力轉變方法並創建新系統。

For example, the -- we introduced J-SLIM in Japan, reducing the number of parts globally and introducing a supply and demand system using AI. As a result, so as all this -- as a result, while the past few years, the business environment has come in the fiscal year different from the past few years, the fiscal term ending March 31, '24, our efforts to strengthen our profit structure, which we built over the years have achieved greater macro results.

例如，我們在日本推出了 J-SLIM，減少了全球零件數量，並引入了使用人工智慧的供需系統。結果，所有這一切——結果是，雖然過去幾年的商業環境與過去幾年有所不同，但在截至 24 年 3 月 31 日的財政年度中，我們努力加強我們多年來建立的利潤結構取得了更大的宏觀成效。

I'd like to take, again this opportunity to express my sincere appreciation for their support, which includes customers, shareholders, suppliers, dealers, employees and local communities.

我想再次藉此機會對他們的支持表示衷心感謝，其中包括客戶、股東、供應商、經銷商、員工和當地社區。

So regarding the outlook for the fiscal year ending March 2025, maintaining the profit structure from the previous fiscal year, we aim to accelerate the investment in the future with determination in order to enhance the attractiveness of the automotive industry as a whole and to grow together with all stakeholders. On this basis, the structure will be maintained as in the previous year.

因此，對於截至2025年3月的財年展望，在維持上一財年的利潤結構的情況下，我們將堅定地加快未來的投資，以增強整個汽車行業的吸引力，共同成長。相關者。在此基礎上，繼續保持上年的結構。

So let me supplement this with a graph. The JPY 5.3 trillion in operating income for the fiscal year ended March 2024 included the effects of the curbing selling expenses in response to the favorable market environment as well as large order backlog for which we act for the temporary hard work of the employees and the suppliers.

因此，讓我用圖表來補充這一點。截至 2024 年 3 月的財年營業收入為 5.3 兆日圓，其中包括因應對有利的市場環境而抑制銷售費用的影響，以及我們為員工和供應商的臨時努力而採取的大量訂單積壓的影響。

After subtracting that, while maintaining JPY 5 trillion profit structure, the profit -- the operating income forecast for the fiscal year ending March 2025 is JPY 4.3 trillion taking into account investment of JPY 380 billion in human resources -- for human resources and investments for the transmission towards the mobility company.

扣除該金額後，在維持5兆日圓的利潤結構的同時，考慮到3,800億日圓的人力資源投資，截至2025年3月的財政年度的營業收入預測為4.3兆日圓，用於人力資源和投資傳輸至行動公司。

Investment for transformation into a mobility company is expected to be increased for the proportion of capital expenditure and R&D expenses related to growth areas by JPY 500 billion from the previous fiscal year to JPY 1.7 trillion.

轉型為行動公司的投資預計與成長領域相關的資本支出和研發費用比例將比上一財年增加5,000億日元，達到1.7兆日圓。

Lastly, Toyota alone cannot achieve structural reform of our business from now on. And we will work together with our stakeholders.

最後，今後我們業務的結構性改革不可能只靠豐田一家來實現。我們將與我們的利害關係人共同努力。

For that, we would like to use the resources that we have been able to generate, thanks to our many stakeholders to grow together with our customers, shareholders, suppliers, dealers, employees and local communities. With this, I would like to conclude my explanation of the financial results. Thank you.

為此，我們希望利用我們所能產生的資源，感謝我們的眾多利害關係人，與我們的客戶、股東、供應商、經銷商、員工和當地社區共同成長。至此，我想結束對財務業績的解釋。謝謝。

[Interpreted] Thank you very much. Continuing on, Koji Sato, President of the company, will give you the explanation.

[解釋]非常感謝。接下來由公司社長佐藤浩二為大家解答。

[Interpreted] I'm Koji Sato. In announcing these financial results, I would like to express our company's sincere gratitude to its Toyota, Lexus and GR customers as well as to all other stakeholders for their support.

[譯]我是佐藤浩二。在宣布這些財務表現時，我謹向豐田、雷克薩斯和GR客戶以及所有其他利害關係人的支持表示我們公司的誠摯謝意。

In the previous fiscal year, our diverse product lineup enabled us to provide our customers with many cars. We believe that this achievement is the result of years of determined product-centered management and the building up of our business foundation.

在上一財年，我們多樣化的產品陣容使我們能夠為客戶提供多種汽車。我們相信，這項成就是多年來堅定的以產品為中心的管理和業務基礎建立的結果。

Based on this business foundation, we intend to draw further growth strategies for sustainable growth. To that end, we will continue to focus on giving concrete form to our vision of transforming into a mobility company in this fiscal year. This means helping create a mobility-based society by increasing the added value of cars with the aim of building a new industrial structure.

在此基礎上，我們打算制定進一步的成長策略以實現永續成長。為此，我們將繼續專注於在本財年中具體落實我們轉型為行動出行公司的願景。這意味著透過增加汽車的附加價值來幫助創造一個以移動為基礎的社會，以建立新的產業結構。

To achieve that, we will take on the challenge together with many colleagues with a sense of mission. We believe that the key to this transformation is increasing the mobility of energy and data. In other words, looking toward the future, supported by electricity and hydrogen, we believe that cars should serve as a medium to transport energy and contribute to creating a society centered on renewable energy. Also, we aim to further enrich people's lives with mobility value created through data.

為了實現這一目標，我們將與許多有使命感的同事一起迎接挑戰。我們認為，這項轉變的關鍵是提高能源和數據的流動性。換句話說，展望未來，在電力和氫氣的支持下，我們認為汽車應該作為能源運輸的媒介，為創造以再生能源為中心的社會做出貢獻。此外，我們的目標是透過數據創造的行動價值進一步豐富人們的生活。

This fiscal year's key themes in working towards that future are the materialization of multi-pathway solutions and the creation of a foundation for software-defined vehicles done in the Toyota way that will realize diverse mobility values for our customers.

本財年實現這一未來的關鍵主題是實現多路徑解決方案，並為以豐田方式實現的軟體定義車輛奠定基礎，為我們的客戶實現多樣化的移動價值。

Over the past year, we have been advancing towards embracing battery EVs, which were our missing piece. Our challenge to create a new vehicle architecture is progressing due to technological advances in aerodynamics and heat management as well as the development of contact and lightweight powertrains and other major components. These elemental technologies can be applied in the future to the development of plug-in hybrid vehicles and others, leading to a diverse multi-pathway lineup of vehicles.

在過去的一年裡，我們一直在努力擁抱電池電動車，這是我們所缺少的部分。由於空氣動力學和熱管理方面的技術進步以及接觸式和輕量化動力系統及其他主要部件的發展，我們創造新車輛架構的挑戰正在取得進展。這些基本技術將來可以應用於插電式混合動力汽車和其他汽車的開發，從而形成多樣化的多途徑汽車陣容。

Regarding hydrogen, we have accelerated the creation of foundations for commercialization in various regions. In addition to developing and implementing hydrogen mobility in the commercial domain, we are also providing fuel cell systems for various applications such as trains, ships and generators and pursuing initiatives in producing and storing hydrogen.

氫能方面，我們加快了各地商業化基礎建設。除了在商業領域開發和實施氫移動性之外，我們還為火車、船舶和發電機等各種應用提供燃料電池系統，並致力於生產和儲存氫氣。

Going forward, we would like to accelerate the social implementation of hydrogen mobility, including infrastructure, together with our partners, especially in Europe, China and North America, where hydrogen consumption is particularly high.

展望未來，我們希望與我們的合作夥伴一起，加速氫能流動性的社會實施，包括基礎設施建設，特別是在氫消耗量特別高的歐洲、中國和北美。

Further, we will continue to work with determination on the future of the internal combustion engine. Even in the future, in which energy centers and electricity and hydrogen, we will plan to continue actively advancing next-generation engines with an eye toward using e-fuel and other liquid fuels.

此外，我們將繼續堅定地致力於內燃機的未來。即使在未來，以電力和氫為能源中心，我們也將計劃繼續積極推動下一代發動機，並著眼於使用電子燃料和其他液體燃料。

To realize a software-defined vehicle, the Toyota way, we have spent the past year focusing on developing our Arene on vehicle operating system and building foundation for software. Moving forward, we aim to increase our efforts to evolve mobility that utilizes generative AI, including automated driving, and we plan to expand AI-related investments.

為了實現豐田方式的軟體定義車輛，我們在過去的一年裡專注於在車輛作業系統上開發 Arene 並為軟體奠定基礎。展望未來，我們的目標是加強發展利用生成式人工智慧（包括自動駕駛）的行動出行，並計劃擴大人工智慧相關投資。

Also, to further develop a foundation for software-defined vehicles, we plan to establish strategic partnership beyond the automotive industry, including an infrastructure and apps and services closely related to daily life. Even as we pursue these initiatives, our unwavering core is being a car maker.

此外，為了進一步奠定軟體定義汽車的基礎，我們計劃在汽車產業之外建立策略合作夥伴關係，包括與日常生活密切相關的基礎設施以及應用程式和服務。即使我們追求這些舉措，我們堅定不移的核心是成為一家汽車製造商。

We will change the future of cars. Meeting this challenge requires a foundation for solid car making. In that sense, our top priority for future growth is to strengthen our work foundation by facing head-on the issues of irregularities at member companies of our corporate group and Toyota's lack of reserve capacity.

我們將改變汽車的未來。應對這項挑戰需要堅實的汽車製造基礎。從這個意義上說，我們未來發展的首要任務就是正視集團成員公司的違規行為和豐田儲備能力不足的問題，夯實工作基礎。

Therefore, this fiscal year, we will determinedly a devote the money and time needed to strengthen our work foundation. Desiring to create today how we will work 10 years from now, we will strive to generate reserve capacity to ensure thorough safety and quality and firmly endeavor to develop a skilled workforce by improving individual skills based on job descriptions.

因此，在本財年，我們將堅決投入所需的資金和時間來夯實我們的工作基礎。為了創造今天的10年後的工作方式，我們將努力建立儲備能力，以確保徹底的安全和質量，並堅定地努力透過根據職位描述提高個人技能來培養熟練的勞動力。

This fiscal year, in addition to our JPY 1.7 trillion investment in growth areas, we plan to dedicate JPY 380 billion to such investment in human resources to strengthen our work foundation and to change how we work together with our suppliers and dealers. I have shared with you our thoughts and priority themes for the current fiscal year.

本財年，除了在成長領域投資 1.7 兆日圓外，我們還計劃在人力資源方面投入 3,800 億日元，以加強我們的工作基礎並改變我們與供應商和經銷商的合作方式。我已經與大家分享了我們對本財年的想法和優先主題。

The most important thing is execution. We will take on the challenge of achieving a mobility-based society together with many partners while responding to issues and changes that come to light only after we have first decided what to do and have shared started doing it.

最重要的是執行力。我們將與許多合作夥伴一起迎接實現行動社會的挑戰，同時應對只有在我們首先決定要做什麼並共同開始做之後才發現的問題和變化。

We would greatly appreciate your support and understanding.

我們非常感謝您的支持與體諒。

[Interpreted] Thank you very much. This is going to be followed by Q&A session. Please give us a while before the stage is set for the Q&A session with the layout being changed. Thank you.

[解釋]非常感謝。隨後將進行問答環節。請在問答環節佈置好舞台並更改佈局之前給我們一些時間。謝謝。

We would like to start the Q&A session. Those respondents from TMC, please come on the stage.

我們想開始問答環節。請TMC的受訪者上台。

First of all, let me introduce who are on the stage, Koji Sato, Chief Executive Officer; Yoichi Miyazaki, Chief Financial Officer, Executive Vice President; Masahiro Yamamoto, Chief Officer for Accounting Department -- Accounting Group. Please take seats. So we will open this Q&A session. First, I'd like to receive questions who are present in the venue. If you have a question, please raise your hands so that the microphone can be brought to you. (Operator Instructions) So please start the question. Person seated in the second row from the front please.

首先介紹一下台上的嘉賓，執行長佐藤浩司；宮崎洋一，財務長、執行副總裁； Masahiro Yamamoto，會計部-會計組首席官員。請入座。所以我們將開設這個問答環節。首先，我想接受在會場的各位的提問。如果您有疑問，請舉手以便將麥克風帶到您面前。 （操作員指示）那麼請開始提問。請坐在前排第二排的人。

[Interpreted] [Trinity Newspaper], [Sogito] is my name. My question is raised to president, Sato. The announced -- the financial results announced today and also the forecast for the next fiscal year, how have you assessed that?

[解釋][三一報]，[Sogito]是我的名字。我的問題是向佐藤總裁提出的。今天公佈的財務表現以及下一財年的預測，您如何評價？

Last fiscal year, you made a record high, both operating income and revenue. And this fiscal year as well, you achieved the record high levels. What are the factors contributing to that? And what is the background contributing to that? What is your assessment of that as President?

上一財年，你們的營業收入和收入都創下了歷史新高。在本財年，您也達到了創紀錄的高水準。造成這種情況的因素有哪些？造成這種情況的背景是什麼？身為總統您對此有何評價？

[Interpreted] Thank you for your question. First of all, on the previous fiscal year, in terms of the actual results of that fiscal year, first and foremost, producing and manufacturing cars, delivering them to customers. Just to be able to do that is really something that we fully appreciate and feel very grateful for.

[解釋]謝謝你的提問。首先，就上一財年而言，就該財年的實際業績而言，首先是生產製造汽車，交付給客戶。能夠做到這一點確實是我們非常欣賞和感激的事情。

Looking back the past year, once again, a very fundamental foundation of the business and to be able to work on that is deeply appreciated by myself. In terms of the actual results, it's a result of those activities. The fact that we were able to manufacture those cars being able to deliver that is in the background of that.

再次回顧過去的一年，我對業務的一個非常基礎的基礎以及能夠為此而努力感到深深的讚賞。就實際結果而言，這是這些活動的結果。事實上，我們能夠製造那些能夠提供這種服務的汽車就是在這個背景下的。

And also was supported by serious efforts made by many stakeholders from many different aspects. It's not just single person working the hardest, from the planning, development, manufacturing, sales and marketing in many different departments, people made efforts in many different ways, and that contributed to the actual results we were able to announce today for the current fiscal year.

並且得到了眾多利害關係人從多方面的認真努力的支持。最努力的不只是一個人，從規劃、開發、製造、銷售到行銷，許多不同的部門，人們以多種不同的方式做出了努力，這促成了我們今天能夠宣布的本財年的實際結果。

In the sense, this business and corporate foundation we have today and on that for us to be able to achieve properly the sustainable results, we will consider the most important priority to consolidate and strengthen the business foundation to be more concrete, to be able to generate such a profit. What was in the background was a very strong supply chain and the 5.5 million colleagues in this industry supported us.

從某種意義上說，我們今天擁有的這個業務和企業基礎，為了我們能夠正確實現可持續的成果，我們將考慮最重要的優先事項，以鞏固和加強業務基礎，使其更加具體，能夠產生這樣的利潤。背後是非常強大的供應鏈，還有這個產業550萬同仁的支持。

So to protect that supply chain foundation is something that we really have to squarely work on for us to achieve sustainable growth, to protect and defend the supply chain with a strong determination, we will make investment for that purpose to be able to protect that.

因此，保護供應鏈基礎是我們真正必須努力實現永續成長的事情，以堅定的決心保護和捍衛供應鏈，我們將為此目的進行投資，以便能夠保護它。

From the perspective of strengthening business foundation within the company and also within the group, there may have been areas in which reserve capacity was depleted and therefore, the fundamental action should be enabled. That is to say we need to have some reserve capabilities so that we can address our sales to the structural reform, which we should be able to do that.

從夯實公司內部、集團內部業務基礎的角度來看，可能存在儲備能力不足的地方，需要根本採取行動。就是說我們需要有一些儲備能力，這樣我們才能把我們的銷售放到結構性改革中去，我們應該能夠做到這一點。

We will spend money for that purpose as well. And to do so will lead to the sustainable growth over long term. So that's the actual results and the projection for the next fiscal year. That's how I feel about it right now.

我們也會為此目的花錢。這樣做將帶來長期的可持續成長。這就是實際結果和下一財政年度的預測。這就是我現在的感受。

[Interpreted] Let me move on to the next question. You talked about strengthening the business foundation and it's related to that. You talked about the investment at the human resources, substantial amount. From your perspective, Mr. President, concretely speaking, including supply chain and various genba, what are the challenges? And what are the issues that led you to make investments? And how are you going to improve or rectify that situation?

[解釋]讓我繼續下一個問題。您談到了加強業務基礎，這與此相關。您談到了人力資源的投資，金額很大。主席先生，從您的角度來看，具體來說，包括供應鏈和各種genba，挑戰是什麼？是什麼問題促使您投資？您將如何改善或糾正這種情況？

[Interpreted] First of all, with respect to strengthening the business foundation, naturally, needless to say, the operation of the work we are engaging right now, on the current assumption, we've been able to enhance the efficiency. But those improvement in enhancing efficiency, some requires a review and revision. So the change the way we work fundamentally and also generate, we do not have a reserve capacity that enables us to change the necessary structure.

【解讀】首先，關於加強業務基礎，自然不用說，我們現在正在進行的工作的運作，按照目前的假設，我們已經能夠提高效率。但那些提高效率的改進，有些需要重新檢視和修改。因此，從根本上改變我們的工作方式並產生這種變化，我們沒有足夠的儲備能力來改變必要的結構。

For us to achieve sustainable growth over many years, we need to review many aspects of our business fundamentally. The structural reform of the automotive manufacturing cannot be achieved by just changing different functions from the upstream to downstream, for example, GX. If that is considered in certain aspects, it just results in improvement in that particular area, but data starting from upstream to downstream and marketing and sales end-to-end.

為了實現多年的可持續成長，我們需要從根本上審視我們業務的許多方面。汽車製造業的結構性改革不能僅僅透過從上游到下游改變不同的功能來實現，例如GX。如果從某些方面考慮的話，只是在那方面有所改善，但數據是從上游到下游，行銷和銷售端到端的。

To achieve that, we will be able to change the way in which we are doing business and we need to have some reserve capacity, which we are lacking right now for us to be able to engage in those fundamental reform and change.

為了實現這一目標，我們將能夠改變我們的經營方式，我們需要有一些儲備能力，而我們現在缺乏這種儲備能力，以便我們能夠參與這些根本性的改革和變革。

So to create the situation in gemba for us to be able to take up such a challenge, we would like to make very proactive efforts for the future sustainable growth.

因此，為了在現場創造條件，讓我們能夠應對這樣的挑戰，我們願意為未來的永續成長做出非常積極的努力。

[Interpreted] Next question, please. The person on the right side of the row at the corner.

[解釋] 請下一個問題。位於角落那一排右側的人。

[Interpreted] I have a question to -- 2 questions to Sato, CEO. About supply chain that you are going to return back to them, including to the suppliers, the human -- the capital human resource investment over the JPY 38 billion (sic) [JPY 380 billion].. But any what is the specific way to support suppliers and others. That is you would like sort of support their labor cost, that is about JPY 380 billion, including the labor expense as well for the support of the suppliers.

[解釋] 我有一個問題要問──向執行長佐藤提出兩個問題。關於你要返還給他們的供應鏈，包括供應商、人力——資本人力資源投資超過380億日元（原文如此）[3800億日元]..但是具體的方式是什麼？人。也就是說，您希望支持他們的勞動力成本，即約 3800 億日元，包括勞動力費用以及供應商的支持。

[Interpreted] Thank you for your question. Basic principle is, as you said, the suppliers would have the incurred labor cost equivalent portion should be reflected in our price for them. So that is when we procure products from them. That's our consideration. So that has been taken into account in this particular plan.

[解釋]謝謝你的提問。基本原則是，正如您所說，供應商所產生的勞動成本等值部分應該反映在我們為他們提供的價格中。這就是我們從他們那裡採購產品的時候。這是我們的考慮。因此，這個特定計劃已考慮到這一點。

[Interpreted] Specifically, do you have any of the initiatives and activities like return back to the supply chain people there -- your principle there.

[解讀] 具體來說，您是否有任何舉措和活動，例如返回供應鏈人員那裡—您那裡的原則。

[Interpreted] Like DX digitalization support is one way, Toyota will give an order to those suppliers. Based upon the past system that has been given to them in that way. But the way the data is transmitted or order is given to them when the demand-supply fluctuation is so quick that the more flexible change of the product supply necessary, more manual work is done to convey this kind of message.

【解讀】像DX數位化支援是一種方式，豐田會給那些供應商下訂單。基於以這種方式給予他們的過去的系統。但是，當供需波動如此之快，以至於需要更靈活地改變產品供應時，向他們傳輸資料或下達訂單的方式，需要進行更多的手動工作來傳達這種訊息。

But to that kind of manual work, we will give additional support. Digitalization can be promoted even for the suppliers. So it will be a continuous for digitalization. So the world of the suppliers will be lowered because of this new support. It's one of the support. Another most important factor is the field in the genba in order to upgrade their productivity their genba activity should be supported by us by sweating together. So to what extent they could have some waste of practice where we detect together with them and help them to solve those problems in the genba.

但對於這種手工工作，我們會給予額外的支持。即使對於供應商來說也可以促進數位化。所以數位化將是一個持續的過程。因此，由於這種新的支持，供應商的世界將會降低。這是支持之一。另一個最重要的因素是在現場，為了提高他們的生產力，他們的現場活動應該得到我們一起流汗的支持。那麼他們在多大程度上可能會浪費一些練習，我們與他們一起檢測並幫助他們解決現場的這些問題。

So Toyota will the suppliers to do Kaizen improving. We have system to change the way they do, then their workload and burden will be lowered, then eventually the unnecessary costs will be lowered. So that is genba improvement, digitalization activities. And then labor cost support in procurement practice. These are the package of deals to try to support.

所以豐田會對供應商進行Kaizen改進。我們有系統來改變他們的工作方式，那麼他們的工作量和負擔就會降低，最終不必要的成本就會降低。這就是 genba 改進、數位化活動。然後是採購實務中的勞動成本支援。這些是要努力支持的一攬子交易。

[Interpreted] The second part of my question is to strengthen your foundation. As you mentioned that some priority is that the money and time will be spent for that purpose, but specifically, what are the specific initiatives you are thinking about? And to strengthen your foundation, the production volume and the development period required and productivity might be impacted and changed. So how do you strike the balance between the productivity pursuit versus strengthening the basic foundation.

[解讀]我的問題的第二部分是加強你的基礎。正如您所提到的，優先考慮的是為此目的花費金錢和時間，但具體而言，您正在考慮哪些具體舉措？為了鞏固您的基礎，所需的生產量和開發週期以及生產力可能會受到影響和改變。那麼如何在追求生產力和加強基礎之間取得平衡。

[Interpreted] Thank you for your question. About the strengthening of foundation, it should be looked at in the long-term perspective because annual growth and this -- annual-based growth is our aim. So that high efficiency is that enables our current operation, just because of the high efficiency, we couldn't change our system fundamentally in a way because inherently, conventionally because of vehicle structure consisted of the system and the component system and then all those different functions were assembled together as a vehicle.

[解釋]謝謝你的提問。關於夯實基礎，應該從長遠的角度來看，因為每年的成長，每年的成長是我們的目標。所以說高效率就是我們現在的運作方式，只是因為高效率，我們不能從根本上改變我們的系統，因為本質上，傳統上因為車輛結構是由系統和部件系統組成的，然後所有這些不同的功能被組裝在一起作為一個車輛。

But currently, what we like to build is a new way of mobility toward this new mobility, it is to cover both different disciplines or some of them present in the new work will be required increasingly. So to -- we have to have enough time but we can't take enough time to do these things.

但目前，我們想要建立的是一種新的移動方式，以實現這種新的移動性，它要涵蓋不同的學科，或者新工作中將越來越需要其中一些學科。因此，我們必須有足夠的時間，但我們不能花足夠的時間來做這些事情。

Taking that into account, our existing work volume should be lowered -- reduced for the time being. And that is a project, the burden should be adjusted and each workload at each function in place that the manager and the workers should talk about. And then we should question whether this particular work is necessary or not, and we might need to maybe stop certain work.

考慮到這一點，我們現有的工作量應該減少——暫時減少。這是一個項目，應該調整負擔，每個職能的每個工作量都到位，經理和工人應該討論。然後我們應該質疑這項特定的工作是否必要，我們可能需要停止某些工作。

Something design that department should do or sometimes the experiment department should do this and the job description should be rethought and rewritten fundamentally. Then what we are doing every day? Is this really proper work according to this new definition? We're doing it properly and efficiently.

有些設計是部門應該做的，或者有時實驗部門應該做的，並且工作描述應該從根本上重新思考和重寫。那我們每天都在做什麼呢？根據這個新定義，這真的是正確的工作嗎？我們正在正確有效地做這件事。

Another activities every day, about 30 minutes, each person's work should be spent for the future on growth. Every day, 30 minutes per capita, not just been occupied finishing the work every day, the duty, but whether as the professional to grow in the future, is this -- this 30 minutes should be dedicated to think about the career, promotion and skill up, eventually, it will improve the quality of the product.

另外每天活動30分鐘左右，每個人的工作都應該花在為未來的成長上。每天，每人30分鐘，不僅僅是被每天的工作、職責所佔用，而是未來能否作為專業人士成長，就是這個——這30分鐘應該專門用來思考職業、晉升和晉升等問題。提高，最終會提高產品的品質。

Currently, that -- it's a highly sophisticated development and lots of rework is necessary. But taking into account this rework we set the standard lead time for the R&D, but the basic function should be fully standardized job description has to be fully defined.

目前，這是一個高度複雜的開發，需要進行大量的返工。但考慮到這次返工，我們為研發設定了標準提前期，但基本功能應該完全標準化，職位說明必須完全定義。

The rework will be minimized or reduced and then it seems like on the your efficiency is going down, but it's not the case because in total, the overall efficiency should be enhanced, so the current premise of the current work should not be just a binding condition at all. You have to relook at fundamentally what your work is and definition in order to eventually boost the productivity and especially in many ways, of course, Miyazaki will explain about that monetary aspect.

返工會被最小化或減少，那麼看起來你的效率就下降了，但事實並非如此，因為總的來說，整體效率應該提高，所以當前工作的前提不應該只是一個約束。你必須從根本上重新審視你的工作是什麼和定義，以便最終提高生產力，特別是在很多方面，當然，宮崎駿會解釋金錢方面的問題。

[Interpreted] Yes. As was mentioned earlier, how best we can enhance the efficiency of the work that may be the best way of describing that, eliminating waste and enhanced efficiency overall, the network.

[解釋] 是的。正如前面提到的，我們如何才能最好地提高工作效率，這可能是最好的描述方式，消除浪費並提高整體網路效率。

And to do that, we would like to make an active investment, amounts and numbers I introduced to you already earlier. But if anything, vis-a-vis suppliers and also, as far as we are concerned, going down to the lower tier, we would like to discuss those details. Otherwise, the attractiveness of the overall automotive industry cannot be enhanced in my view, and if we are successful in doing so, that will lead to the higher productivity.

為此，我們希望進行積極的投資，金額和數字我之前已經向您介紹過。但如果有的話，相對於供應商，以及就我們而言，深入到較低層，我們願意討論這些細節。否則，我認為整個汽車產業的吸引力就無法增強，如果我們成功地做到這一點，那將帶來更高的生產力。

The people will stay in the company and also it will result in net work for work done. Internally within TMC, as Mr. Sato mentioned earlier, the time used for teaching others was lacking this time and therefore, that caused the reduction in efficiency, sometimes go about (inaudible) done.

員工將留在公司，這也將為完成的工作帶來網路工作。在TMC內部，正如佐藤先生剛才提到的，這次用於教導他人的時間缺乏，因此導致效率下降，有時會（聽不清楚）完成。

And so it might appear as if it is the time wasted. But by spending time, spending enough time for that, we would like to make efforts so that it will result in enhanced efficiency. Earlier, I mentioned that JPY 320 billion investment for future growth and JPY 380 billion for human resources, but as I mentioned in my presentation, as far as the amount is concerned, the resources given to us will be used for the purpose of further investments. So that working together, we would like to create the attractive automotive industry. And for that purpose, we would like to spend such financial resources and money. Thank you very much.

因此，這可能看起來像是浪費了時間。但透過花時間，花足夠的時間，我們願意做出努力，從而提高效率。早些時候，我提到3200億日元用於未來增長，3800億日元用於人力資源，但正如我在演講中提到的，就金額而言，給予我們的資源將用於進一步投資的目的。因此，我們希望共同努力，創造有吸引力的汽車產業。為此，我們願意花費這樣的財力和金錢。非常感謝。

[Interpreted] All right, at the front row, person in pink shirt.

[翻譯] 好的，前排，穿粉紅色襯衫的人。

Hans of Automotive News. May I ask the question in English please. I'd like to ask 2 questions about the situation with sales and -- of hybrids and the North American market's importance. The first one is about hybrids. Has hybrids reached a turning point in public acceptance now. It used to be an alternative kind of powertrain. Now I'm wondering if it's now seen as the first choice among Toyota buyers and that the ICE, the traditional gasoline engine is maybe seen as a second choice now. Has it flipped finally for Toyota where that the hybrids have become mainstream in your opinion?

汽車新聞的漢斯。我可以用英語問這個問題嗎？我想問兩個關於混合動力車銷售情況和北美市場重要性的問題。第一個是關於混合動力的。現在混合動力車在公眾接受度方面是否已經達到了一個轉折點？它曾經是一種替代動力系統。現在我想知道它現在是否被視為豐田買家的首選，而傳統汽油引擎 ICE 現在可能被視為第二選擇。在您看來，豐田的情況最終發生了轉變，混合動力車已成為主流嗎？

Also, regarding the North American market, that seems to be a very stronghold for not only Toyota, but Japanese automakers in general, I'm wondering how much more importance you put on the U.S. now given the instability of other big markets such as China or Southeast Asia, especially as Chinese automakers export more from China?

另外，關於北美市場，這似乎不僅是豐田的一個大本營，而且是整個日本汽車製造商的一個大本營，我想知道考慮到中國等其他大市場的不穩定，您現在對美國的重視程度如何或東南亞，尤其是在中國汽車製造商從中國出口更多產品的情況下？

[Interpreted] Thank you very much for asking those questions. Hans-san, allow me to explain and also make some additional comments with respect to hybrid vehicles. And earlier, I used some slides to explain the situation. In fiscal year ending in April 2023 and '24 -- '25 the electric vehicles increased by 1 million and of that, 900,000 new network hybrid vehicles. And the major reason which the increase was achieved, North America was at the top, followed by Japan, China. Those are the ranking where the areas in which hybrid sales increase.

[解釋]非常感謝您提出這些問題。 Hans-san，請容許我解釋一下，並就混合動力車提出一些補充意見。之前我用了一些幻燈片來解釋這個情況。在截至 2023 年 4 月和 24-25 財年，電動車增加了 100 萬輛，其中新增網路混合動力車 90 萬輛。而成長的主要原因是北美位居榜首，其次是日本、中國。這些是混合銷售成長的領域的排名。

In North America right now, roughly speaking, at the dealer levels, the days inventory is 15 days that's the inventory days, 15 days. But as far as hybrid vehicles are concerned, it's between 5 days to 8 days. So it continues that hybrid vehicles are selling extremely well in North American market. And major factors in the background is most of the models of Toyota have the hybrid versions added to that in the lineup.

現在在北美，粗略地說，在經銷商層面，庫存天數是15天，就是庫存天數，15天。但對於混合動力車來說，則在 5 天到 8 天之間。由此可見，混合動力車在北美市場的銷售量非常好。背後的主要因素是豐田的大多數車型都增加了混合動力版本。

And at the same time, you mentioned that hybrid used to be the alternative choice, but is it going to be the mainstay powertrain? As we have been constantly said for Toyota, the enemy what we need to address is the carbon, for us to achieve carbon neutrality, we have been trying to sell hybrid vehicles. And since the introduction of Prius that permeated quite well in the North American or U.S. market, it has been recognized as a main player.

同時，您提到混合動力曾經是替代選擇，但它會成為主要動力系統嗎？正如我們經常對豐田所說的那樣，我們需要解決的敵人是碳，為了實現碳中和，我們一直在努力銷售混合動力車。自從普銳斯推出以來，它在北美或美國市場滲透得很好，被認為是主要參與者。

In addition, hybrid, is synonymous for low fuel consumption and also the acceleration performance, the right comfort and overall performance of hybrid has improved. So it has become an extremely attractive vehicle. It has those appeals. That's a situation in hybrid right now.

此外，混合動力，是低油耗的代名詞，而且混合動力的加速性能、舒適性和整體性能都有所提升。因此它已成為一種極具吸引力的車輛。它有這些吸引力。這就是現在混合動力的情況。

About your second question, that is to say the importance of North American market, as we have been saying over the years, under the leadership of our CEO for the region, we have the members who give the highest priority to their activities. And that's how we are conducting business.

關於你的第二個問題，也就是說北美市場的重要性，正如我們多年來一直在說的，在我們該地區執行長的領導下，我們擁有最優先考慮其活動的成員。這就是我們開展業務的方式。

So to us, all the regions of the world, have carried the highest priority. And on that, we are trying to strike a good balance in conducting our business. And those are the approaches we take in doing our business. In that, as far as Asia is concerned, there are concerns of vehicles imported for China. As of today, the Asian market -- our market share in Asian markets have been maintained and kept.

因此，對我們來說，世界所有地區都具有最高優先權。在這一點上，我們正​​在努力在開展業務時取得良好的平衡。這些就是我們在開展業務時所採取的方法。就亞洲而言，對中國進口汽車存在擔憂。到今天為止，亞洲市場——我們在亞洲市場的市佔率一直保持著。

If anything, in Thailand, right now, our market share has improved temporarily in Thailand, for example, there has been a period in which the battery EV increased, but right now, it has been evolving quite stably. And therefore, together with our lineup and also the network leadership, we are working very hard to deliver as we close to the customers as quickly as possible.

如果有什麼不同的話，那就是現在在泰國，我們的市場份額在泰國暫時有所提高，例如，曾經有一段時期是電池EV增加的，但現在它一直在相當穩定地發展。因此，與我們的陣容和網路領導力一起，我們正在努力工作，以盡快貼近客戶。

[Interpreted] Thank you very much. Another person in this -- the person by the corridor.

[解釋]非常感謝。這裡還有一個人──走廊旁邊的人。

[Interpreted] I have a question to Mr. Sato, the President. My first question is that now that it is something that's determined and will plateau. But for the mid- to long-term growth of the Toyota for the future, how do you like to use this time, JPY 380 billion will be spent for this investment for human resource is huge. Is this going to end just for this fiscal term, or are you going to continue this human capital or human resource investment afterwards as well?

[口譯]我有一個問題要問佐藤主席。我的第一個問題是，現在它已經是確定的並且將會趨於穩定。但對於豐田未來的中長期成長來說，你想怎麼利用這個時間，3,800億日圓將用於人力資源的投資是巨大的。這種情況會在本財政年度結束，還是之後您還會繼續進行人力資本或人力資源投資？

[Interpreted] Thank you for your question. Yes, it is the particular plateau that we implement just with will -- determination. We need this type of plateau for the long-term future growth. So it's a necessary period. And then actually, we are so stretched with our activities, and we have to strengthen our foundation.

[解釋]謝謝你的提問。是的，這是我們憑藉意志和決心來實現的特定平台。我們需要這種平台期來實現未來的長期成長。所以這是一個必要的時期。事實上，我們的活動已經捉襟見肘，我們必須加強我們的基礎。

In other words, we would not be ready smoothly challenge the new area. As I said in the presentation, we will head toward becoming a mobility company, transformation. Lots of new projects need to be tackled with. But what is the origin?

換句話說，我們還沒有準備好順利挑戰新領域。正如我在演講中所說，我們將走向成為一家行動公司，進行轉型。許多新項目需要處理。但根源是什麼？

We are the carmaker, so we have to build a solid, good, safe and comfortable and a good car, so good car making is a grand premise of all the activity. With that satisfied, then will be allowed to challenge brand-new areas. So our basic function, basic function has to be secured. We have to spend money in people to do that.

我們是汽車製造商，所以我們要造一輛堅固、好、安全、舒適的好車，所以造好車是一切活動的大前提。滿足了之後，就可以去挑戰全新的領域了。所以我們的基本功能，基本功能必須得到保障。我們必須在人才身上花錢才能做到這一點。

So what is the basis of the growth? Of course, we have to be able to do all the basic required function properly. Then we'll strengthen our foundation. This new investment for human resources, I think we need to continue to a certain extent.

那麼成長的基礎是什麼？當然，我們必須能夠正確完成所有基本所需的功能。然後我們就加強我們的基礎。這種對於人力資源的新投資，我認為我們需要在一定程度上繼續下去。

However, as I said, that the basic function must be secured. We have to eliminate wasteful practices as well at the same time. And then meantime, we will create the like TPA, that the wasteful practice should be visualized, all process should be visualized. And then before and after your process, you know what the other people are doing. What your own function, your process can be improved and changed. So we'd like to do that.

但是，正如我所說，必須保證基本功能。我們同時也必須消除浪費的做法。同時，我們將創建類似TPA，浪費的做法應該可視化，所有流程都應該可視化。然後在你的流程之前和之後，你知道其他人在做什麼。你自己的職能是什麼，你的流程可以改進和改變。所以我們想這樣做。

And finally, it will eventually lead to the over-increase of the productivity so that including suppliers and major investment will be made for the suppliers as well. Based upon that investment, we will further strengthen our foundation. Eventually, it will lead to the higher productivity and we need that investment for a certain period of time, but the improvement we've made steadily one after another. So it's not a continuous fixed amount of investment, it's not like that.

最後，最終會導致生產力的過度成長，從而將供應商納入其中，並為供應商進行大量投資。在此基礎上，我們將進一步鞏固我們的基礎。最終，它會帶來更高的生產力，我們需要在一段時間內進行投資，但我們已經穩步取得了一個又一個的進步。所以它不是一個連續的固定金額的投資，不是這樣的。

[Interpreted] The second part of my question, is that about the EV? Because your hybrid products are doing well, in many markets, people are reevaluating the meaning of EV. Based upon your multi-pathway strategy, the hybrid is doing so well. Do you intend to maybe revise the plan for EV development and strategy.

[解讀]我的問題的第二部分是關於電動車的嗎？因為你們的混合動力產品表現不錯，在許多市場上，人們正在重新評估電動車的意義。根據您的多途徑策略，混合動力表現得很好。您是否打算修改電動車開發計畫和策略？

[Interpreted] Thank you for your question. Yes, in the new setup and after I became a President, I've been telling the same message. We maintained this multi-pathway strategy. We will not change it. We maintain it. What we have to do is that for the sake of customers, we need to look at the actual demand of the customers and respond to their demand, and we should be prepared to do that.

[解釋]謝謝你的提問。是的，在新的體制中以及我成為總統後，我一直在傳達同樣的訊息。我們維持了這個多途徑策略。我們不會改變它。我們維護它。我們要做的就是，為了客戶著想，我們需要看到客戶的實際需求，回應他們的需求，我們應該做好準備。

So therefore, there are many description to the battery EV, the people with different perspectives. Basically, [our pace or stance] position has not been changed. We'd like to offer necessary multiple options to the place where people need it, as I said, so they are the basic standard units that we are thinking about, which is the basic unit. But eventually, supply chain should be built to be able to supply that. So time schedule should be clarified and volume should be clarified together with the suppliers, we should be prepared in advance.

因此，對於純電動車有許多描述，人們有不同的看法。基本上，[我們的步伐或立場]立場沒有改變。我們想把必要的多種選擇提供給人們需要的地方，就像我說的，所以它們是我們正在考慮的基本標準單元，這是基本單元。但最終，應該建立供應鏈來提供這些服務。所以要和供應商一起明確時間安排和數量，提前做好準備。

So it's like the pace note or the basic preparation. So if the change -- times change, that we will -- flexibly change according to the changing times. And then we will like to optimize this timing of the investment.

所以這就像節奏筆記或基本準備。因此，如果時代變了，我們就會根據時代的變化而靈活地改變。然後我們會優化投資時機。

In other words, my predecessor, Akio Toyoda was the President. He had a strong belief at that time, 5 years ago, battery EV, some people sit, criticize that you are behind the EV, but he had a courage to say, the Chairman Toyoda said we maintained a policy of multi-pathway, and we maintain that policy. Because of that, now the technology has advanced and battery EV we should build has become more visible and which are the priority investment area is now clear. When is a better optimal timing investment. So we can now manage to control the timing of investment.

換句話說，我的前任豐田章男是總統。他當時有一個堅定的信念，5年前，電池電動車，有人坐著，批評你落後於電動車，但他有勇氣說，豐田章男主席說我們保持了多路徑的政策，並且我們維持這一政策。正因為如此，現在技術已經進步，我們應該建造的電池電動車已經變得更加明顯，哪些是優先投資領域現在已經很清楚了。什麼時候是更好的最佳時機投資。所以我們現在可以設法控制投資時機。

So because of our strong belief and our steady policy, our multi-pathway concept is still maintained, and we would like to continue to work based upon that.

因此，由於我們堅定的信念和穩定的政策，我們的多途徑理念仍然保持著，我們願意在此基礎上繼續努力。

[Interpreted] Thank you very much. Now at the center row, the person with his or her hand high up.

[解釋]非常感謝。現在，在中間一排，那個人高舉著他或她的手。

[Interpreted] Yomiuri Newspaper, Mizuno is my name. I have 2 questions to President, Sato. My question also relates to the EVs. In the financial result material, for the new fiscal year, that is to say in the sales projection, the BEVs unit in the previous year. It is 117,000 units. And for this year, it says 171,000, so increased by [46,000] units. How should I interpret that change or increase?

[解讀]讀賣新聞，水野是我的名字。我有兩個問題要問佐藤總統。我的問題也與電動車有關。在財務績效資料中，對於新的財政年度，即銷售預測中，上一年的 BEV 單位。數量為 117,000 單位。今年，它說是 171,000，因此增加了 [46,000] 個單位。我應該如何解釋這種變化或增加？

[Interpreted] Thank you very much for your question. In terms of the sales projections for the current fiscal year, to a certain extent, the actual demand is assessed very conservatively. I hope you'll interpret that in that light vis-a-vis BEVs, the infrastructure necessary for that the conditions for that are not in place. And for value-added introduced by BEVs are not adequate from the perspective of customers in my view.

[解釋]非常感謝您的提問。就本財年的銷售預測而言，某程度上對實際需求的評估非常保守。我希望您能從這個角度來理解純電動車所需的基礎設施，但條件尚未到位。在我看來，從客戶的角度來看，純電動車帶來的附加價值還不夠。

And therefore, the mobility installed with the electrified components -- major components has been increasing in demand. So we will solidly respond to that demand, and that is reflected in the numbers you have mentioned. In the phase following 2026, the situation might change. So aiming at that period, we would like to make sure that we are ready to provide BEVs in Toyota way.

因此，對搭載電氣化部件（主要部件）的移動性的需求不斷增加。因此，我們將堅決回應這項需求，這也反映在你提到的數字中。 2026年之後的階段，情況可能會改變。因此，針對那個時期，我們希望確保我們準備好以豐田的方式提供純電動車。

[Interpreted] Let me move on to the second question. Earlier, you mentioned that when you talked about SDV and you said SDV in the Toyota way, created in Toyota way for the -- in terms of the investment for the current fiscal year, it seems that you are dedicating a lot of efforts for SDVs. Concretely speaking, how do you intend to proceed with the investment for research and development? What is the current situation Woven City. Could you enlighten us on the Woven City situation as well, please?

[解讀]我接著談第二個問題。早些時候，您提到當您談到SDV時，您提到了以豐田方式創建的SDV，以豐田方式創建的——就本財年的投資而言，您似乎為SDV付出了很多努力。具體來說，您打算如何進行研發投入？織城現狀如何。您能否也向我們介紹一下編織城市的情況？

[Interpreted] Thank you for your question. First of all, the SDVs created and developed in Toyota way, we are the car maker and therefore, to enhance the value added of the vehicles, the software-defined vehicle will be developed.

[解釋]謝謝你的提問。首先，SDV是按照豐田的方式創建和開發的，我們是汽車製造商，因此，為了提高車輛的附加價值，將開發軟體定義的車輛。

The -- as the value of our mobility is continue to supply, but not just people and cargo, but data and energy can be also transported. So it will serve as a medium for that. And when we are in that sort of period, the vehicles could be more integrated with social systems overall and we need to show that in the concrete form.

因為我們的移動性的價值在於持續供應，不僅可以運輸人員和貨物，還可以運輸數據和能源。所以它將作為一個媒介。當我們處於這樣的時期時，車輛可以與整個社會系統更加融合，我們需要以具體的形式來展示這一點。

Unfortunately, thus far, the vehicles focusing on ICEs, the electric energy was very difficult to be used in that. So focusing on battery EVs or maybe PHEVs or hybrid as well, the vehicles installed with electrified major components, we will keep in our vision, the usage of electric energy, and that enables easier use of data management.

不幸的是，迄今為止，以內燃機為主的車輛，很難利用電能。因此，我們將重點關注電池電動車、插電式混合動力汽車或混合動力汽車，即安裝了電氣化主要部件的車輛，我們將繼續關注電能的使用，從而更容易使用數據管理。

And in the world in which data management is facilitated, the collaboration with infrastructure or including autonomous driving, AI, which could be a partner. It could be supporting you. And if that is done, vis-a-vis mobility and when you're faced with the mobility, the value provided by that will change.

在促進資料管理的世界中，與基礎設施的協作或包括自動駕駛、人工智慧都可以成為合作夥伴。它可能會支持你。如果做到了這一點，相對於移動性，當你面對移動性時，它所提供的價值將會改變。

The application services could be added to the value generated by the vehicle. So the environment to be developed to that extent. And also the foundation of the onboard platform is now being prepared. As we do that, various value-added could be connected to open platform.

應用服務可以增加車輛產生的價值。所以環境要發展到那個程度。機載平台的基礎也正在準備中。當我們這樣做時，各種增值服務可以連接到開放平台。

So not limiting ourselves to the world of vehicles and auto builds, but in the broader world, the vehicles could be connected to other aspects of the world. So one by one in a concrete form, we would like to show what we have in mind to the world.

因此，我們不僅限於車輛和汽車製造的世界，而是在更廣闊的世界中，車輛可以與世界的其他方面連接起來。所以我們想以具體的形式一一向世界展示我們的想法。

With respect to Woven City, the digital twin is playing an important role. We experiment in the laboratory form of mobility. So the interface with society and vehicles and well, energy is added to that, what sort of value added can be created working together with many partners, we will validate that as this what sort of role -- active role can be -- can it play will be verified in the Woven City, and we are now in the preparatory stage. So that's the current status of Woven City.

對於編織城市來說，數位孿生正在發揮重要作用。我們以實驗室形式的流動性進行實驗。因此，與社會和車輛的介面以及能量被添加到其中，與許多合作夥伴一起工作可以創造什麼樣的附加價值，我們將驗證這是什麼樣的角色 - 積極的角色 - 可以嗎？城進行驗證，目前正處於籌備階段。這就是編織城目前的現況。

[Interpreted] The third row and second line.

【解讀】第三行第二行。

[Interpreted] (inaudible) I have a question to Mr. Sato. It's a relevant question to earlier question about Hybrid versus BEV. Recently, have the growth is so marked. So the next year's outlook is that almost 1 million units additional outlook and today, you mentioned and continuously you said mid to long term, the electricity and the hydrogen are the most promising energy source for the future. But my question is a time table because it's so difficult to forecast the future. As of now, the hybrid demand trend is increasing, but after which point, how long will this continue this increasing demand? That's my first question.

[譯]（聽不清楚）我有一個問題要問佐藤先生。這是與先前有關混合動力與純電動車的問題相關的問題。最近，成長如此明顯。因此，明年的前景是增加近 100 萬台的前景，今天，您提到並不斷表示中長期來看，電力和氫是未來最有前途的能源。但我的問題是一個時間表，因為預測未來非常困難。截至目前，混合需求趨勢正在增加，但到什麼時候，這種增加的需求會持續多久？這是我的第一個問題。

[Interpreted] Thank you for your question. It's a difficult question to answer because forecasting future is quite impossible, but there are many ways you get a feel of it that automobile OEMs stand-alone cannot change the future because the energy environment is different.

[解釋]謝謝你的提問。這是一個很難回答的問題，因為預測未來是完全不可能的，但你可以透過多種方式感受到汽車原始設備製造商無法單獨改變未來，因為能源環境是不同的。

National government and administration and many other relevant institutions, we have to build a new environment for the new energy. For example, hydrogen wise, automotive sector, the hydrogen use is currently only 10% of the total hydrogen use in steel industry or the electricity power generators, and we have to collaborate use the amount of the hydrogen for each region should be increased. Otherwise, low-cost hydrogen cannot be supplied.

國家政府和行政部門以及許多其他相關機構，我們要為新能源建構新環境。例如氫氣方面，汽車業目前氫氣的使用量只佔鋼鐵業或發電業氫氣使用總量的10%，我們要協同各地區的氫氣使用量來增加。否則，無法供應低成本的氫氣。

What is low-cost hydrogen? If that's become feasible. The secondary energy in the e-fuel is likely to be produced with the ease, and hybrid HEV because ICEs, but still, it's almost like a dual emission vehicle. Realistically, CO2 emission has to be lowered by (inaudible) efforts. The current infrastructure asset should be utilized and then for sure, you can reduce CO2 emissions. That is a very important approach to -- it's not -- they are not a material existing stand-alone, but they are all linked and connected with each other.

什麼是低成本氫？如果這變得可行的話。電子燃料中的二次能源很可能很容易產生，而混合動力混合動力汽車則因為內燃機，但它仍然幾乎像雙排放汽車。實際上，必須透過（聽不清楚）努力來降低二氧化碳排放量。應該利用目前的基礎設施資產，然後肯定可以減少二氧化碳排放。這是一個非常重要的方法，但事實並非如此，它們不是一種獨立存在的物質，而是相互連結和連結的。

Therefore, in that sense, you have to build a partnership with different companies and institutions and many others. We are working very hard. And then hydrogen electricity and so-called renewable energy. They should protect the global environment. And then we should try to enable this kind of future world as soon as possible.

因此，從這個意義上說，你必須與不同的公司和機構以及其他許多人建立夥伴關係。我們正在努力工作。然後是氫電和所謂的可再生能源。他們應該保護全球環境。然後我們應該努力盡快實現這樣的未來世界。

So we had to keep acting. That's my frank view. It's not a direct answer to your question. However, we are positively working with our utmost effort. That's something we are doing.

所以我們必須繼續演戲。這是我坦率的看法。這不是對你的問題的直接回答。但我們正在盡最大努力積極開展工作。這就是我們正在做的事情。

[Interpreted] My second question is about BEV earlier, and so on that the Toyota's values are further created. Now when you look at the market, the market is decelerating. On the other hand, the manufacturers move for example, in Japan and the U.S. and Europe, there are different OEMs in the 3 years -- are launching quite the priority products one after another in upcoming 3 years.

[解讀]我的第二個問題是關於之前的BEV，等等豐田的價值觀進一步被創造。現在，當你觀察市場時，你會發現市場正在減速。另一方面，製造商行動，例如在日本和美國和歐洲，這3年裡有不同的OEM廠商——在未來3年裡陸續推出相當優先的產品。

So what is the major priority product for you as the new value you offer? So you said you are going to build the foundation and then create the reserve capacity. But the business structure itself is changing meantime to build this new strong foundation. So I would like to hear your message. What is the most important value -- the priority? And what is the automobile BEV? That's my question.

那麼，作為您提供的新價值，您最優先考慮的產品是什麼？所以你說你要打基礎，然後創造儲備能力。但業務結構本身正在發生變化，以建立這個新的堅實基礎。所以我想聽聽你的留言。最重要的價值是什麼－優先順序？什麼是汽車純電動車？這就是我的問題。

[Interpreted] The 2 angles or perspectives I can answer. First is the business structure change. This is a trigger point for that. The electricity unit without the ICE. That kind of the structure of the vehicle is totally different from the conventional vehicle structure.

[解讀]我可以回答的2個角度或觀點。首先是業務結構的變化。這是一個觸發點。沒有 ICE 的電力裝置。這種車輛的結構與傳統的車輛結構完全不同。

In other words, in a way, the vehicle architecture itself should be totally changed. But it's a big chance for us to change it. We had a conventional engine, but that's now missing. During the collision, that the engine would not collide or collapse. That empty space without the engine.

換句話說，在某種程度上，車輛架構本身應該徹底改變。但這對我們來說是一個改變現狀的好機會。我們有一個傳統的發動機，但現在不見了。在碰撞過程中，引擎不會碰撞或崩潰。沒有引擎的空曠空間。

The car architecture can be totally changed. The bonnet fluid hydro is determined by the engine space without engine, bonnet fluid can be lowered, so better visibility for the drivers, it's very important for drivers to have a good view.

汽車架構可以完全改變。引擎蓋油液的水壓是由引擎空間決定的，沒有發動機，引擎蓋油液可以降低，這樣對於駕駛員來說視野更好，良好的視野對於駕駛員來說非常重要。

So basic function and performance of vehicle can be changed and the structural components will be changed. So the building assembly and the plant activity will be totally changed. The conventional production method is no longer valid because we changed the architecture, new thing can be created.

因此車輛的基本功能和性能會發生變化，結構部件也會改變。因此，建築組裝和工廠活動將完全改變。傳統的生產方法不再有效，因為我們改變了架構，可以創造新的東西。

The first thing is that it's a trigger to lead to a structural change. That is a battery EV the one function for us. The second point response is that the components of the vehicle we change, the car design totally will be changed in a different design shape.

首先，它是導致結構性變革的觸發器。這就是電池電動車對我們來說唯一的功能。第二點回應是，我們改變車輛的零件，汽車的設計完全會改變為不同的設計形狀。

During the mobility show last fall, we have shown you some of the examples. If you get on the car, a total different view can be enjoyed, different feel of driving can be enjoyed that kind new vehicle can be created. We are the carmaker, riding the car should be enjoyable. That is a value regardless of the electric vehicle or ICE, so that many changes can be done with a new possibility.

在去年秋天的行動展會上，我們向您展示了一些範例。如果你上車，就能享受到完全不同的景色，享受到不同的駕駛感受，創造出一種全新的車輛。我們是汽車製造商，駕駛汽車應該是一種享受。無論是電動車還是內燃機汽車，這個值都是一樣的，因此可以透過新的可能性來完成許多改變。

So battery EV has all the potential. It's not just simply the lower the carbon emission, it's not because of that. The car itself the existence will be totally changed and become more attractive. And this is a chance as a vehicle though, mobility means that we can change and create something new so that the total structural change can be possible. So those are 2 prospects we would like to treasure.

因此，電池電動車具有所有潛力。這不只是碳排放量降低這麼簡單，還不是因為這樣。汽車本身的存在將徹底改變並變得更具吸引力。不過，作為一種交通工具，這是一個機會，移動性意味著我們可以改變並創造新的東西，從而使整體結構改變成為可能。因此，我們希望珍惜這兩個前景。

[Interpreted] At this juncture, I would like to entertain questions from those participants on the web. (Operator Instructions)

[解讀]在此，我願意接受網路上與會人士的提問。 （操作員說明）

Now Inajima-san I will switch to screen. So if you see yourself on the screen, please start asking the question.

現在稻島先生將切換到螢幕。因此，如果您在螢幕上看到自己，請開始提問。

[Interpreted] Inajima of Bloomberg. Can you hear me?

[解讀]彭博社的稻島。你聽得到我嗎？

[Interpreted] Yes, we can hear you.

[翻譯] 是的，我們聽得到你的聲音。

[Interpreted] I would like to ask about the share repurchase for one of the reasons you said that the response to the request coming from your company shareholders to sell your shares. Could you share with us the details, not just the group companies, but also the strategically held equities by financial institutions. They might want to sell your shares, and that is included.

【解讀】我想問關於股份回購的問題，你說的原因之一是你公司股東要求出售你的股份。您能否為我們介紹一下具體情況，不僅是集團公司，還有金融機構策略持有的股權。他們可能想出售你的股票，這也包括在內。

But in terms of the actual magnitude, what is your assessment of that magnitude. And from a medium- and long-term perspective, with the -- you already announced our policy vis-a-vis cross shareholding amongst group companies. But in terms of cross shareholding, including some financial institutional shareholders, from a long-term perspective, are you also willing to unwind those shareholdings? Could you respond to the questions?

但就實際規模而言，您對這個規模的評估是怎麼樣的呢？從中長期角度來看，您已經宣布了我們針對集團公司之間交叉持股的政策。但交叉持股，包括一些金融機構股東，長遠來看，你們也願意減持嗎？你能回答一下問題嗎？

[Interpreted] Thank you for your question. Allow me to respond to that question. In terms of the share repurchase, as you correctly pointed out, right now, many -- well, not just Toyota, but many corporations are trying to switch that or replace that with actual assets, so to speak, and the proceeds generated by share sales could be used for the investment for next growth.

[解釋]謝謝你的提問。請容許我回答這個問題。就股票回購而言，正如您正確指出的那樣，現在許多公司——嗯，不僅僅是豐田公司，而且許多公司都在嘗試將其轉換或用實際資產取代，可以這麼說，以及股票產生的收益銷售收入可用於下次成長的投資。

And we'll be promoting with various shareholders. I would like to refrain from mentioning any specific names. So those are the activities we have been pursuing for many years. And the impact -- potential impact on that market could become quite significant from time to time for shareholders and stakeholders, those transactions should not negatively affect them, the stakeholders and shareholders. And therefore, using the share repurchase, we would like to receive those total shares released by the current shareholders. And for that purpose, we set aside those repurchase program to that end.

我們將與各個股東一起進行宣傳。我不想提及任何具體名稱。這些就是我們多年來一直追求的活動。對於股東和利害關係人來說，對該市場的潛在影響可能會不時變得相當重大，這些交易不應該對他們、利害關係人和股東產生負面影響。因此，透過股票回購，我們希望獲得當前股東釋放的全部股份。為此，我們擱置了這些回購計劃。

And including the group company shares and also strategically held shares, the basic approach or principle remains unchanged. That is to say we will rebalance those with active or lively assets. Thus far, with various companies within the group and historically speaking, the financial support or the mergers in many different forms, those cross shareholding size increased. And with those shares cross-held without saving any area of sacrosanct, we will transform them into the actual meaningful shareholding.

並且包括集團公司股份以及策略性持有的股份，基本做法或原則保持不變。也就是說，我們會重新平衡那些資產活躍或活躍的資產。迄今為止，隨著集團內各公司的加入，從歷史上看，由於資金支持或多種不同形式的合併，這些交叉持股規模有所增加。而這些股票交叉持有，不保留任何神聖不可侵犯的領域，我們將把它們轉變為真正有意義的持股。

[Interpreted] One other question. In November this year, the presidential election, depending upon the outcome of that, the U.S. policy might change. There is such a risk. And on the particular risk, the automotive industry or the Toyota, what are the potential impacts on the automotive industry as well as Toyota. What sort of preparations have you made in Indiana plant in relation to battery EVs, you announced substantial investment, but preparing for such potential change in the U.S. policy, is there cases where you might be postponing some investments or accelerating that, including those potential? Could you respond to that question, please?

[解釋]還有一個問題。今年11月的總統大選，根據選舉結果，美國的政策可能會改變。存在這樣的風險。對於特定的風險，無論是汽車產業還是豐田，對汽車產業以及豐田的潛在影響是什麼？你們在印第安納州的工廠做了哪些與電池電動車相關的準備，你們宣布了大量投資，但是為美國政策的這種潛在變化做準備，你們是否有可能推遲或加速一些投資，包括那些潛在的投資？請您回答一下這個問題好嗎？

[Interpreted] Thank you for your questions. First of all, as I mentioned at the very outset in each region and in each country for the smiles and happiness of customers, we placed highest priority to our customers' smiles and happiness. And the political trends, the economic trends, which is in the background, we are carefully watching that as we do business, but first and foremost, what we do is to become the best-in-town company so that we can have the solid trusting relationship with our customers in a any community in which we are allowed to operate.

[解釋]謝謝您的提問。首先，正如我一開始提到的，在每個地區和每個國家，為了客戶的微笑和幸福，我們將客戶的微笑和幸福放在首位。政治趨勢、經濟趨勢是背景，我們在做生意時會仔細觀察，但最重要的是，我們要做的是成為城裡最好的公司，這樣我們才能擁有堅實的基礎。任何社區中與客戶建立信任關係。

So in that sense, in line with the situation prevailing, we would like to make necessary adjustments. And by doing so, in terms of our relationship with different companies, if some particular attention is required, we would make actions in line with those adjustments.

所以從這個意義上來說，根據目前的情況，我們願意做出必要的調整。透過這樣做，就我們與不同公司的關係而言，如果需要特別注意，我們會根據這些調整採取行動。

[Interpreted] Thank you, Mr. Inajima. We'd like to entertain the next question. Inagaki-san, please. So we will switch the screen when your image is on the screen. Please start to ask a question.

[翻譯]謝謝你，稻島先生。我們想回答下一個問題。稻垣先生，請。因此，當您的影像出現在螢幕上時，我們將切換螢幕。請開始提問。

[Interpreted] Thank you. I'm Inagaki of Financial Times. Sir, you've been talking about this strengthen your foundation for the upcoming one year. But globally, the situation is getting quite severe, especially the competitive environment is getting severe and you prepare for that. So JPY 1.7 trillion will be invested for the growth area including AI and EV and in hydrogen and many other new areas, I understand.

[已翻譯] 謝謝。我是《金融時報》的稻垣。先生，您一直在談論這會為您接下來的一年奠定基礎。但從全球來看，情況越來越嚴峻，特別是競爭環境越來越嚴峻，你要做好準備。據我了解，1.7兆日圓將投資於包括人工智慧和電動車在內的成長領域以及氫能和許多其他新領域。

However, in China, competitive environment is getting worse. It's getting speedy and new technology introduction is accelerated and then flexibility-wise that the situation is getting very difficult for all the OEMs. So to the kind of change are you getting ready for that? How your investment for growth will impact on that kind of competitive and other changing environment?

然而，在中國，競爭環境卻日益惡化。它變得越來越快，新技術的引入也在加速，然後靈活性方面，所有原始設備製造商的情況都變得非常困難。那麼你準備好迎接什麼樣的改變了嗎？您的成長投資將如何影響這種競爭和其他不斷變化的環境？

My second question is that earlier, you talked about the possible influence by the U.S. presidential election, not just a result of election, but in the U.S. and EU, the China -- Chinese-made vehicles are imported one after another and then made this move to raise the tariff against the Chinese vehicles. And globally, there's a new trend of raising the tariff. Is that risk factor that you are analyzing as well?

第二個問題，剛才你談到了美國總統大選可能產生的影響，不僅僅是選舉結果，而是在美國和歐盟，中國——中國製造的汽車被陸續進口，然後製造成這樣。提高對中國汽車的關稅。在全球範圍內，出現了提高關稅的新趨勢。您也在分析這個風險因素嗎？

[Interpreted] Thank you for your question. About the first question, JPY 1.7 trillion investment for the future. Of course, the competitive environment is changing and we should get ready for that. Frankly speaking, to compare with China, in a certain area, we are behind them (inaudible). That's a fact and we have to admit that. However, we are trying to supply vehicles, which make customers happy. As a Japan-based automobile company, we have to compete based upon that. So this is a certain distance, and then we had to keep that, and then we should not really shrink that difference.

[解釋]謝謝你的提問。關於第一個問題，1.7兆日圓的未來投資。當然，競爭環境正在發生變化，我們應該為此做好準備。坦白說，與中國相比，在某些方面我們落後於他們（聽不清楚）。這是事實，我們必須承認這一點。然而，我們正在努力提供讓客戶滿意的車輛。作為一家日本汽車公司，我們必須以此為基礎進行競爭。所以這是一個一定的距離，然後我們必須保持這個距離，然後我們不應該真正縮小這個差異。

So how can we really achieve enable ourselves to go through the game change, so that this JPY 1.7 trillion will be allocated according to those optimal selection in terms of the region and then the sectors, which timing that we get the higher probability we're winning because size of the investment as well as the content will be brief to you later on and the progress state will be reported to you as well.

那麼，我們怎樣才能真正實現讓自己能夠經歷遊戲規則的改變，從而使這1.7萬億日元將根據區域和部門的最佳選擇進行分配，哪個時機我們獲得更高的概率呢？規模以及內容稍後會向您簡要介紹，並且也會向您報告進度狀態。

In addition, we have won over 100 million vehicles that the customers are already operating our vehicle. That's our strength. In the past, we said that we just supply the vehicle, afterwards, that as the time goes by, our relation -- contact with the customer got diluted. But in the future, we make use of that future investment, we can maintain and strengthen and prolong our contact and relation with the customers. So we will transform ourselves to a mobility company. We gained a new competitive edge and a new business structure change will be achieved by that kind of extension. So that's how we intend to spend our money for future.

此外，我們還贏得了超過 1 億輛汽車，客戶已經在使用我們的車輛。這就是我們的力量。過去我們說我們只是提供車輛，後來隨著時間的推移，我們和客戶的關係——接觸就淡化了。但在未來，我們利用未來的投資，我們可以維持、加強和延長我們與客戶的聯繫和關係。因此，我們將轉型為一家出行公司。透過這種延伸，我們獲得了新的競爭優勢，將實現新的業務結構變革。這就是我們打算如何為未來花錢。

The second part of your question, in the U.S. and EU, Chinese-made vehicles are imported, and they are trying to raise tariff possibly against Chinese vehicles. As you pointed out, that depending upon the political move, different options and valuation might likely to happen. So in that sense, as I've been saying, for us, for each region, we have these regional CEOs, and then we have a contracting and networking on the PR and then we will collect the information as much as possible. And then we will be ready in advance to deal with the change or potential change and to pass the quick decision, the optimal decision to deal with the situation. That's my answer. Thank you very much.

你問題的第二部分，在美國和歐盟，中國製造的汽車是進口的，他們正在試圖提高對中國汽車的關稅。正如您所指出的，根據政治舉措，可能會出現不同的選擇和估值。因此，從這個意義上說，正如我一直在說的，對於我們來說，對於每個地區，我們都有這些地區首席執行官，然後我們在公關上有合約和網絡，然後我們將盡可能多地收集資料。然後我們會提前做好準備，應對變化或潛在的變化，並透過快速決策、最佳決策來應對這種情況。這就是我的答案。非常感謝。

[Interpreted] Thank you very much. Thank you very much for those participants online for asking questions. So I would like to come back to the venue to entertain questions. So on this row. The person in white shirt, please.

[解釋]非常感謝。非常感謝各位網友在線上提問。所以我想回到會場回答大家的問題。所以在這一行。請穿白襯衫的人。

[Interpreted] Journalist, Momota is my name. My question is Mr. Sato and Mr. Miyazaki. Transformation into mobility company and talked about the investment to that end. And as a new value, you talked about the strategic partnership relating to SDVs or partnership in energy field you mentioned.

[解說]記者，桃田是我的名字。我的問題是佐藤先生和宮崎先生。轉型為移動出行公司並談到了為此目的的投資。作為一個新的價值，您談到了與SDV相關的策略合作夥伴關係或您提到的能源領域的合作夥伴關係。

But on that basis, the existing business foundation, that is to say the UIOs and the profit structure and also including the number of units, there may be the discussion on the optimization of cars and vehicles in this side overall. You talked about the strengthening of the business foundation looking toward 10 years from now. And this might lead to the sales activities. But toward the major change in transformation of the business, what are you going to do specifically just to share your image or what you envision to do that please?

但是在這個基礎上，現有的業務基礎，就是說UIO和利潤結構，還包括單位數量，可能會有汽車和車輛這方面整體優化的討論。您談到了展望 10 年後加強業務基礎的問題。這可能會導致銷售活動。但是對於業務轉型的重大變化，您具體會做什麼來分享您的形像或您打算做什麼？

[Interpreted] Thank you, Mr. (inaudible). Toward the transformation toward mobility company, what we have in mind is something as follows: this requires a major reform of the business structure itself. In a sense, the automotive industry thus far has been the labor-intensive industry and enhancing productivity to achieve certain growth and produce most efficiently, the hardware selling them. And for our business is more less focused on new cars and new car sales and expanded that. And that business model assumed the continued increase in the unit of sales resulting in the increase in business size. That was the basic consumption.

[解釋] 謝謝您，先生（聽不清楚）。對於出行公司的轉型，我們的想法是這樣的：這需要對業務結構本身進行重大改革。從某種意義上說，汽車行業迄今為止一直是勞動密集型行業，透過提高生產力來實現一定的成長並最有效地生產，銷售它們的硬體。因為我們的業務不再那麼專注於新車和新車銷售，而是擴大了這個範圍。此商業模式假設銷售量持續增加，導致業務規模擴大。這就是基本消費了。

But as you correctly pointed out, when creating -- trying to create the society, which is based upon sustainability, the large volume manufacturing and a large amount consumption is no longer sustainable. So when we consider for the automotive industry to be able to transform itself into a mobility company to promote structural change is absolutely necessary. And what we have to do to that end is to create reliably the value chain, not just relying on value of hardware, the new cars, but rather starting from hardware, but on the further downstream, new values need to be created and generated and those newly created values should be monetized.

但正如你正確指出的那樣，當創造——試圖創造一個基於永續性的社會時，大量製造和大量消費不再可持續。所以當我們考慮汽車產業能夠轉型為移動出行公司來推動結構性變革是絕對有必要的。為此我們要做的就是可靠地創造價值鏈，不僅僅是依靠硬體、新車的價值，而是從硬體開始，而在更下游，需要創造和產生新的價值，這些新創造的價值應該貨幣化。

Unless the business structure is based upon that, we will not be able to transform and change from the business model based upon increase in volume. So as (inaudible) we are focused now holds the key to realize that. In my view and therefore, in order to encourage such reform of business structure, we will conduct this change. And on the part of value chain, the area enriched -- the value is actually created.

如果業務結構不以此為基礎，我們就無法從基於量成長的業務模式進行轉型和改變。因此，（聽不清楚）我們現在所關注的重點是實現這一點的關鍵。因此，我認為，為了鼓勵這種業務結構的改革，我們將進行這種改變。而在價值鏈的部分，領域豐富了──價值其實被創造了。

The creator may not be just automotive industry. There are many service providers, creating those new services and mobility should be able to incorporate those service providers. And when there is a certain service provider, the mobility to be able to join hands with them to be facilitated by the environment conducive to that is very important. So this software foundation streamlining and also the (inaudible) platform and also the environment that enables the incorporating the open architecture applications will have to be facilitated by the fundamental reform of the business structure.

創造者可能不僅僅是汽車產業。有許多服務供應商，創建這些新服務和行動性應該能夠合併這些服務提供者。當有一定的服務提供者時，能夠與他們攜手並透過有利於這一點的環境來促進流動性是非常重要的。因此，軟體基礎的精簡以及（聽不清楚）平台以及能夠合併開放架構應用程式的環境必須透過業務結構的根本性改革來促進。

So the way in which the partnership is created is a very open structure where the mobility is accepted as a partner. And with that, we will enhance the value-added of the automotive industry as a whole. That's how we envision the future situation.

因此，合作夥伴關係的創建方式是一種非常開放的結構，流動性被接受為合作夥伴。從而提升整個汽車產業的附加價值。這就是我們對未來情勢的想像。

[Interpreted] The person in the central row, the fourth line, please?

[解讀]請問中間一排第四行的人是嗎？

[Interpreted] Yokoyama (inaudible), I have 2 questions. The first question is about regional activity, as you mentioned, China. I'd like to hear the details about your outlook on China. Mr. Miyazaki you said that the price war and then the competition is very severe the last 3 months, what happened in terms of profitability in data was that China is struggling. Could you please give us some more details on China? What about North America that during the fourth quarter, the deficit in the fourth quarter in North America, could you please explain more about that as well as this fiscal term outlook? That's my first question.

[解釋] 橫山（聽不清楚），我有 2 個問題。第一個問題是關於區域活動，正如你所提到的，中國。我想聽聽您對中國的看法的詳細資訊。宮崎先生說，過去三個月的價格戰和競爭非常激烈，從獲利數據來看，中國正陷入困境。您能否向我們介紹更多關於中國的情況？北美第四季的情況如何，北美第四季的赤字，您能否詳細解釋一下這一點以及本財政期限的前景？這是我的第一個問題。

[Interpreted] Thank you for your question. About the Chinese market. I explained during the last meeting as price competition is getting worse every day. That's my understanding. As to the unit concerned, in the last -- this quarter, it surpassed the previous year. As to the this fiscal year, it's a positive. We will go beyond the previous year. But still, the price competition is getting worse, more fierce. That's one severe fact.

[解釋]謝謝你的提問。關於中國市場。我在上次會議上解釋說，價格競爭日益加劇。這是我的理解。就相關單位而言，上個季度，這個季度，它超過了去年。就本財年而言，這是正面的。我們將超越去年。但價格競爭仍然越來越激烈。這是一個嚴峻的事實。

And battery EV is a focus, and there's oversupply in Chinese market from my standpoint. How we should try not to get involved in that competition is a key point. Of course, naturally, locally to do our business, the plant needs to be operated right, but network has to be maintained, otherwise, the business feasibility will be undermined in the future. So certain volume has to be produced. That has to be maintained.

電池電動車是一個焦點，從我的角度來看，中國市場供應過剩。我們如何盡量不參與這種競爭是一個關鍵點。當然，自然地，我們在本地做生意，工廠需要經營好，但網路也要維護，否則，將來生意的可行性就會受到損害。因此必須生產一定的數量。必須保持這一點。

To do that, purely price competition should not be something we should get involved. Our model should be outside that frame. So the network should be maintained so that we should be ready to deal with the price situation. And then we should be ready for the future. So in that sense, for a while, I wonder if I should say this word or not Mr. Sato didn't give me (inaudible) but we have to endure through this difficult year for upcoming few years. After the endurance, after several years, we will face maybe a new game change because we have more attractive products, including battery EV.

為此，我們不應該參與純粹的價格競爭。我們的模型應該在這個框架之外。因此，應該維護網絡，以便我們做好應對價格狀況的準備。然後我們應該為未來做好準備。所以從這個意義上說，有一段時間，我想知道我是否應該說這句話。 。耐力過後，幾年後，我們可能會面臨新的遊戲規則變化，因為我們有更有吸引力的產品，包括電池電動車。

So currently, in China, the PHEV is increasing as well, and we should be ready to launch a good product during the endurance period so that we will achieve a better growth after that period.

所以目前在中國，PHEV也在增加，我們應該準備好在耐力期推出一個好的產品，這樣我們在這個時期之後才能獲得更好的成長。

As to your question on the fourth quarter in North America, what you said is true. So the part suppliers, and we -- the capacity utilization problem was an issue, and we couldn't produce as much as possible. That was the fourth quarter problem and shifting the cost good at one time, that was North American problem. But up until the third quarter, the situation was different from the past. The cost reduction activity was successfully done by one team united efforts. And product appeal was appreciated at that time. We had a good communication with the dealers and price improvement was also achieved.

至於你關於北美第四季的問題，你說的是事實。因此，零件供應商和我們——產能利用率問題是一個問題，我們無法生產盡可能多的產品。這是第四季度的問題，並且一次性轉移了成本，這就是北美問題。但直到第三季度，情況卻與以往不同。透過團隊的共同努力，降本活動取得了圓滿成功。當時產品的吸引力受到讚賞。我們與經銷商進行了良好的溝通，也實現了價格的提升。

So in North America, profit-making structure was improved properly, I think for this upcoming fiscal year, then even in North America, competitive OEMs the inventory level is getting restored to a certain extent. There, the sales promotion expenses now being increased as well. We have to defeat them and have good competition. So we take into account that potential increase of budget. We should wisely spend the promotion money. So in this North America, we'd like to make sure we achieve profitability.

所以在北美，獲利結構得到了適當的改善，我認為在即將到來的財年，即使在北美，有競爭力的整車廠的庫存水準也在一定程度上得到恢復。那裡的促銷費用現在也在增加。我們必須擊敗他們並進行良好的競爭。因此，我們考慮了預算的潛在增加。我們應該明智地使用促銷資金。因此，在北美，我們希望確保實現盈利。

[Interpreted] My second question about hybrid vehicles. Miyazaki-san, during the last meeting, 5 million units was something a yardstick for sales, you are almost reaching the 5 million if the unit goes up, profitability should further improve, I understand, you make more and then you achieve more profitability. About hybrid profitability was equivalentized or in the North American models, there was maybe better. But anyway, do you have any profitability updated information?

[解讀]我的第二個問題關於混合動力汽車。宮崎先生，上次開會的時候，500萬台是一個衡量銷量的標準，如果台數再上去，就快到500萬台了，盈利能力應該會進一步提高，我明白，你賺得越多，你的獲利能力就越高。關於混合盈利能力是等效的，或者在北美模型中，可能會有更好的結果。但無論如何，您有任何盈利能力的最新資訊嗎？

[Interpreted] Thank you for your question. Thanks to the customer support and appreciation hybrid vehicle price has being improved at a high level, profitability was. It's almost equivalent to ICE or even better than ICE in terms of profitability. If the units further goes up, simply put, the profitability should be improved substantially. That's my current understanding.

[解釋]謝謝你的提問。由於客戶的支持和讚賞，混合動力汽車的價格得到了較高水平的提升，盈利能力也提高了。就獲利能力而言，它幾乎與ICE相當，甚至優於ICE。簡而言之，如果單位進一步上升，獲利能力將大幅提高。這是我目前的理解。

[Interpreted] Move onto the next question. All right in the center in the front row second person from the left.

[解釋]進入下一個問題。就在前排左起第二個人的中間。

[Interpreted] [Ikeda Nauto] is my name. Mr. Sato when you took office as President, you said the inheritance and evolution and this time, you made a very high financial results. So what you have inherited. That is to make ever better cars and also with the TNGA increase in profit margin and also the cost reduction. So both of those benefits played in the financial results this year. So in a sense, this is the inheritance from Mr. Akio Toyoda.

[解釋] [Ikeda Nauto] 是我的名字。佐藤先生就任社長時曾說過繼承和演變，這次取得了非常高的財務表現。那你繼承了什麼。那是為了製造更好的汽車，並且隨著TNGA的利潤率的增加和成本的降低。因此，這兩個好處都在今年的財務表現中發揮了作用。所以從某種意義上來說，這是豐田章男先生的傳承。

When it comes to evolution, you explained many factors relating to evolution and it says that it is really all inclusive saying that implement all those in a well-balanced manner. But as far as you're concerned, what are the areas that you would like to focus most? What sort of company would you like Toyota to become in the future?

當談到進化時，您解釋了許多與進化相關的因素，它說它確實是包容性的，即以平衡的方式實現所有這些因素。但就您而言，您最想關注的領域是什麼？您希望豐田未來成為什麼樣的公司？

[Interpreted] Thank you, Mr. Ikeda for your question. When I took office, I talked about inheritance and also evolution and the financial result we have announced today, it reflects that. The profit of the automotive company is the accumulation of year-after-year of activities. In the previous year, if you look at the financial results of the previous year and compare that with the year before that, while enduring major change in the environmental change, but a steady growth was achieved.

[翻譯]謝謝池田先生的提問。當我上任時，我談到了繼承和演變，以及我們今天宣布的財務業績，它反映了這一點。汽車公司的利潤是逐年活動的累積。過去一年，如果你看上一年的財務業績，與前年相比，雖然經歷了環境變化的重大變化，但卻實現了穩定的成長。

And that is to say the accumulated efforts of strengthening the business foundation resulted in those actual results. And what remains unchanged is focusing on gemba and also the face squarely with the product and product appeals. And those factors will not change going forward in our mind. As a carmaker, myself, I would like to focus on those without wavering from them. Driving or riding in Toyota cars feel safe and feel secure and also enjoy the great pleasure that the sort of car I would like to continue making going forward.

這就是說，夯實業務基礎的努力積累，才換來了實際的成果。不變的是專注於現場以及與產品和產品吸引力直接相關的面貌。這些因素在我們心中不會改變。作為一名汽車製造商，我本人希望專注於這些目標，而不動搖。駕駛或乘坐豐田汽車感到安全，並享受我希望繼續製造的那種汽車所帶來的巨大樂趣。

Now in that with respect to evolution, the value created and generated by vehicles will continue to expand going into future. Cars, even if you own them, the actual time in operation is maybe 10% or even less at 5% so the remaining 95% of the time the cars are not fully utilized. So our efforts to enhance the value-added offer by cars by riding more on the cars and the attractiveness of cars can be enhanced and that is what is needed for the future. What we envision as a vehicle and also the sort of vehicles that younger generation keep in their mind. They are not exactly the same and therefore, by drawing out the actual vision of those vehicles that the younger generation would have to put actual shape to that is something that I would like to do.

現在就進化而言，車輛創造和產生的價值將在未來繼續擴大。汽車，即使你擁有汽車，實際運行時間可能只有 10%，甚至更少，只有 5%，所以剩下 95% 的時間汽車都沒有充分利用。因此，我們透過更多地乘坐汽車來提高汽車的附加價值，可以增強汽車的吸引力，這就是未來所需要的。我們所設想的車輛是什麼，也是年輕一代心目中的車輛類型。它們並不完全相同，因此，透過勾勒出這些車輛的實際願景，年輕一代必須將其具體化，這是我想做的事情。

So as a car maker, I would like to take up that change, and I'd like to realize the new the shape of a new car. And at the same time, a certain ecosystem is needed. That is to say, vehicles still has many negative impacts on limited factors. Minimizing those negative aspects is something that we have to do as our societal mention, to reduce traffic accidents down to 0 is in one of that. And also our efforts to reduce emission is one of that congestion and other aspects.

因此，作為汽車製造商，我願意接受這種改變，並且我希望實現新車的新形狀。同時，還需要一定的生態系。也就是說，車輛在有限的因素下仍然存在許多負面影響。最大限度地減少這些負面影響是我們必須做的事情，正如我們社會所提到的，將交通事故減少到 0 就是其中之一。我們減少排放的努力也是交通擁堵和其他方面之一。

So to eliminate -- minimize the negative aspect of the vehicles is continue to be made and also to have the ecosystem that achieves renewable energy circulation. So even if the vehicles now exist, we need to change the environment conditions so that the vehicles will be a positive factor, the beneficial factor in that. So we are continuing to be the carmaker. And -- but in the areas surrounding vehicles, we would like to capture those new values and address ourselves to a negative aspect is the new talent that we will take up.

因此，要繼續消除——盡量減少車輛的負面影響，並建立實現再生能源循環的生態系統。所以即使現在有車輛，我們也需要改變環境條件，讓車輛成為一個正面的因素，有利的因素。因此，我們將繼續成為汽車製造商。而且 - 但在車輛周圍的領域，我們希望捕捉這些新的價值觀，並解決我們將採用的新人才的消極方面。

[Interpreted] So many people are raising their hands and time is running short. So we'd like to have just 2 more persons to ask a question. In the central row, maybe a third line.

[解讀]這麼多人舉手，時間已經不多了。因此，我們希望再有 2 個人來提問。在中間一排，也許是第三行。

[Interpreted] (inaudible) of (inaudible) Newspaper. I have a question to -- 2 questions to Mr. Sato, CEO. The first question is about hybrid boom on the BEV market globally is decelerating, slowing down. How do you look at this current situation? Is it a surprise for you or you assume that will happen? And what is your future outlook? Or what will happen to BEV market in the future? That's my first question.

[解釋]（聽不清楚）報紙。我有兩個問題要問執行長佐藤先生。第一個問題是全球純電動車市場的混合動力熱潮正在減速。您如何看待目前的現況？這對你來說是一個驚喜還是你認為這會發生？您對未來有何展望？或者說未來純電動車市場會發生什麼事？這是我的第一個問題。

[Interpreted] Thank you for your question. As has been mentioned, that the actual demand of the customers, their need is most important to promote the transition to electric vehicles and, of course, be ready with the product in advance. So our pace has not been changed or affected at all. According to different speed and changing environment, we will perceive that, but there's no big change for us.

[解釋]謝謝你的提問。如同前面所提到的，客戶的實際需求，他們的需求是推動向電動車過渡的最重要的，當然，提前準備好產品。所以我們的步伐根本沒有改變或受到影響。根據不同的速度和變化的環境，我們會感知到這一點，但對我們來說並沒有太大的改變。

But in a way, maybe there was excess heat up expectation on BEV that some people just overemphasized the BEV. But actual use, ease of use for the customers or how the customers will utilize BEVs maybe reality was not really understood. And then, of course, the renewable energy should be promoted first to achieve carbon neutrality. This is one of the means to achieve that. The excess speed or to accelerate transition that will force us to miss something, meantime, lose something. So maybe we face a bit of a turning point because of that.

但在某種程度上，也許人們對純電動車的期望過高，以至於有些人過度強調了純電動車。但實際使用情況、客戶的易用性或客戶將如何使用純電動車可能並沒有被真正理解。當然，首先應該推廣再生能源，以實現碳中和。這是實現這目標的手段之一。過快的速度或加速的轉變會迫使我們錯過一些東西，同時失去一些東西。因此，也許我們面臨著一個轉捩點。

But what about the future outlook of the market? Well, infrastructure has to be prepared. Energy environment has to be prepared and to the customers added value by electric vehicle should be offered to them. So it's all up to those elements. to redesign the speed. So we cannot say the exact time day when this will happen in that. But for us, 2026, to the electric vehicles that we have announced certain scenario. So we are always prepared in advance. And actual demand in the market will be affected by the environment at that time. So we are always ready according to our own pace.

但未來市場前景如何？那麼，基礎設施必須準備好。必須準備好能源環境，並為客戶提供電動車的附加價值。所以這一切都取決於這些元素。重新設計速度。所以我們無法說出這件事發生的確切時間。但對我們來說，到2026年，對於電動車，我們已經宣布了一定的場景。所以我們總是提前做好準備。而市場的實際需求會受到當時環境的影響。所以我們總是按照自己的步調做好準備。

[Interpreted] My second question is a relevant question. As you mentioned, over 2026 1.5 million units and then 3.5 million in 2030. But anyway, for -- in China, the price competition is getting fierce as Miyazaki-san mentioned, the price competition should not be something we should get involved in. So the Chinese BEV market is changing itself, 1.5 million -- or 3.5 million units. That figure might be revised. Is that likely to be revised?

[解讀]我的第二個問題是一個相關問題。正如您所提到的，2026 年將超過150 萬台，2030 年將達到350 萬台。我們應該參與的事情。該數字可能會被修改。這有可能被修改嗎？

[Interpreted] Yes. 1.5 million. The meaning of that figure we mentioned is as follows, that battery EV and how we perceive that, of course, the car architecture will be changed by that and business structure will be changed by that trigger. The way the automobile should be will be changed. So in the short term, can we -- we cannot implement that overnight, supply chain, entire supply chain should be looked at. We have to be prepared. And many partners, and we have to work together to face the same timing. Schedule.

[解釋] 是的。 150萬。我們提到的這個數字的含義如下，即電池電動車以及我們如何看待汽車架構將因此而改變，業務結構也將因此而改變。汽車的設計方式將會改變。因此，從短期來看，我們能否——我們不能一夜之間實現這一目標，供應鏈，整個供應鏈應該受到關注。我們必須做好準備。還有很多合作夥伴，我們要共同努力，面對同樣的時機。日程。

So time access the outlook as well as the volume outlook should be also prepared together with them. Otherwise, you don't know what to prepare at which timing. So all those have to be taken into account as yardstick. So 2026 or 2030, we gave that kind of estimate.

所以時間展望以及成交量展望也應該一起準備。否則，你不知道在什麼時間該準備什麼。因此，所有這些都必須作為衡量標準加以考慮。所以到 2026 年或 2030 年，我們給出了這樣的估計。

But can we really expect the actual demand at that time is another story. 1.5 million units worth of battery can be produced and supplied. Or can we purchase enough batteries? Or can we however structural reform and realized a huge production capacity? So those are all considered in coming up with the estimates. So whether we can sell or not is another story. So please understand those numbers with that kind of context.

但我們真的能預期到當時的實際需求就是另一回事了。可生產供應電池150萬顆。或者我們可以購買足夠的電池嗎？或者說我們能否透過結構性改革實現巨大的產能？因此，在做出估計時，所有這些都被考慮在內。所以能不能賣就是另外一回事了。因此，請在這種背景下理解這些數字。

But lately in China, yes, price competition got fierce, very fierce, and we fully understand the competitive market in China. Not just us, but there is a practical -- the electric vehicle, the PHEV demand is going up now. it's like a different variation of battery EV. So taking that the PHEV as another option, we should think of the overall demand in the market, as Miyazaki-san, excess price competition should never be the one that we should get involved in. We should try to avoid that competition in our initiative.

但最近在中國，是的，價格競爭變得非常激烈，我們完全理解中國市場的競爭。不只是我們，還有一個實際的——電動車、插電式混合動力車的需求現在正在上升。它就像電池電動車的不同變體。因此，以PHEV作為另一種選擇，我們應該考慮市場的整體需求，就像宮崎先生一樣，過度的價格競爭永遠不應該是我們應該參與的競爭。

So that the way we would like to maintain a principle and policy. So in that sense, BEV 1.5 million units, estimates will still be maintained as a basis 1.5 million still will be maintained? Or as you mentioned, PHEV will be maybe included in debt of 1.5 million units you mentioned, PHEV can be included, DSA, 1.5 million because the ICE will be evolving now. So it's not just a range extender of hybrid, but it's a battery EV, which is added with the type of ICE. It's that kind of a concept. So that can PHEV is a part of the attributes of battery EV, I think, and we can include that in that 1.5 million.

這樣我們就想維持一個原則和政策。那麼就這個意義上來說，純電動車150萬輛，預估還是會維持，作為基礎還是會維持150萬輛嗎？或者正如您所提到的，PHEV 可能會包含在您提到的 150 萬輛債務中，PHEV 可以包含在內，DSA 150 萬輛，因為 ICE 現在將不斷發展。所以它不僅僅是混合動力的增程器，而是純電動車，增加了內燃機的類型。就是這樣一個概念。因此，我認為 PHEV 可以成為電池電動車屬性的一部分，我們可以將其包含在這 150 萬輛中。

[Interpreted] Thank you for asking so many questions. So the next one will be the final question. So the person in the front row, please.

[翻譯]謝謝你問了這麼多問題。所以下一個將是最後一個問題。請前排的人發言。

[Interpreted] (inaudible) is my name. I would also like to ask the questions, address to Mr. Sato. The first question is as follows. And this follows on from the previous question. It's on the battery EVs. And in your explanation earlier, the situation in the (inaudible) structure development is one of the factors. And because of that, the battery EV sales seems to be marking time. So to speak, there has been some slowing down in the speed at which it's been spreading. But at the same time, the high price of BEV price is one of the hurdles for customers. And as you develop battery EVs in '26 the affordable battery EV you said will be introduced and launched, but the battery prices and the price of the vehicle itself, once they are reduced to a lower level, do you think that the slowdown could be changed the marking time at we see today may change?

[解釋]（聽不清楚）是我的名字。我還想向佐藤先生提問。第一個問題如下。這是上一個問題的延續。它在電池電動汽車上。在您先前的解釋中，（聽不清楚）結構發展的情況是因素之一。正因為如此，電池電動車的銷售似乎在原地踏步。可以說，它的傳播速度有所放緩。但同時，純電動車價格高也是困擾客戶的障礙之一。當你在26年開發電池電動車時，你說將推出和推出價格實惠的電池電動車，但電池價格和車輛本身的價格，一旦降低到較低水平，你認為放緩可能會是嗎？了我們今天看到的標記時間可能會改變嗎？

[Interpreted] Thank you for your question. Now what can improve the demand is something very difficult for me to respond to our answer. The price range is one of the hurdles for higher demand. I think this is something that I can imagine quite well. And therefore, the continued efforts will be made to make prices more affordable. Especially in the case of battery EVs, because of the structure of the vehicle itself, and starting from that basis, the battery itself accounts for a large percentage of overall cost and price.

[解釋]謝謝你的提問。現在能改善需求的是我很難回應我們的答案。價格範圍是提高需求的障礙之一。我想，這是我能夠很好想像的事情。因此，我們將繼續努力使價格更加實惠。尤其是純電動車，由於車輛本身的結構，從這個基礎出發，電池本身在整體成本和價格中佔比很大。

So the reducing battery EV cost means reducing battery costs itself significantly, and that's a very important factor. And therefore, we are trying to develop batteries in-house or manufacture those batteries in-house, and we've been making multifaceted efforts to that end. And of course, sometimes we will just receive supply. And including our efforts of (inaudible) production development, we will enhance the productivity further. And those need to proceed on the synergistic manner. I may be repeating myself, but the fact that we've been able to make those efforts is attributable to what our Chairman Akio Toyoda did.

因此，降低電動車電池成本意味著大幅降低電池成本本身，這是一個非常重要的因素。因此，我們正在嘗試內部開發電池或內部製造這些電池，並且我們一直在為此做出多方面的努力。當然，有時我們只會收到供應。包括我們在（聽不清楚）生產開發方面的努力，我們將進一步提高生產力。這些需要以協同的方式進行。我可能會重複一遍，但我們之所以能夠做出這些努力，要歸功於豐田章男會長的所作所為。

That is to say -- constantly said that we are following multi-pathway strategy. Because of that, we are now ready to address our sales to the battery EV. We seriously and properly studied what we should be doing for preparing battery EVs. And with those assumptions, we are trying to determine that when we are to make investment. And we are also thinking about customers' demand in your own way. That we'll be ready with the ability to produce the necessary volume.

也就是說——不斷地說我們正在遵循多途徑戰略。因此，我們現在準備好解決電池電動車的銷售問題。我們認真、認真地研究了準備純電動車應該做什麼。根據這些假設，我們試圖確定何時進行投資。我們也在用自己的方式思考客戶的需求。我們將做好準備，有能力生產所需的產量。

Now what will be the price that will enable the demand improvement, it's very difficult for us to answer. This wasn't the case of hybrid as they spread widely and with technology and being enhanced, the vehicles become more and more profitable. So we would like to make efforts to that and as quickly as possible. So it's not a clear answer to your question. But the price is one of the factors without a doubt. You're right in making that point.

現在，價格是多少才能使需求改善，我們很難回答。混合動力汽車的情況並非如此，因為它們廣泛傳播，隨著技術的進步和改進，車輛變得越來越有利可圖。因此，我們希望盡快為此做出努力。所以這不是你問題的明確答案。但價格無疑是影響因素之一。你說得對。

[Interpreted] The very last question relates to foreign exchange rates. For the operating income exceeded JPY 5 trillion. And one of the factors was the impact of the foreign exchange rates. But at the same time, as the yen depreciates further, the suppliers will find the business environment very tough. And so you are supporting while making investment to support suppliers, among others. What is the assessment and view of the current level of foreign exchange rate? And in terms of the support of suppliers and returning some profit for their benefit, could you share your thoughts with us on the point?

[解讀]最後一個問題涉及外匯匯率。營業收入突破5兆日圓。其中因素之一就是外匯匯率的影響。但同時，隨著日圓進一步貶值，供應商會發現經營環境非常艱難。因此，您在支持的同時進行投資以支持供應商等。對目前外匯匯率水準有何評價與看法？那麼對於供應商的支持，以及回饋供應商的一些利潤，您能和我們分享一下您的想法嗎？

[Interpreted] Thank you for your question. With respect to the assumptions for ForEx rate and that is included the profitability assumptions. It is done quite mechanistically without any subjective factors. So based upon the most recent results this time, in the case of dollar assumption is JPY 145 to the dollar. The automotive industry, including suppliers are based upon global business. Of course, our home country is very important. Japan is very important and we established facilities and plans and we set ourselves a growth in that and working with the community, we do business. And that's a long-term business. Of course, markets change from time to time. But with those structures, we continue to compete, and that's been done year after year in the industry, and that will be continued into the future as well.

[解釋]謝謝你的提問。關於外匯匯率的假設，其中包括獲利能力假設。這是相當機械地完成的，沒有任何主觀因素。所以根據這次的最新結果，在美元的情況下假設是日圓兌美元145。汽車產業，包括供應商，都是以全球業務為基礎的。當然，我們的祖國非常重要。日本非常重要，我們建立了設施和計劃，我們為自己設定了成長目標，並與社區合作，我們開展業務。這是一項長期業務。當然，市場會不時改變。但透過這些結構，我們將繼續競爭，這將在行業中年復一年地進行，並且也將持續到未來。

[Interpreted] And Mr. Sato in terms of support to suppliers, could you share your thoughts with us?

【解讀】佐藤先生對於供應商的支持，您能跟我們分享一下您的想法嗎？

[Interpreted] As I mentioned earlier, the automotive industry has a broad supporting industries and in the sense, together with 5.5 million people working for this industry, we achieved our own growth. And therefore, we consider include them in our own thinking. But in the lower tiers, deeper tiers amongst each company trying to make efforts, these major structural change may be very difficult to implement. So vis-a-vis each industrial structure, we have to pay your attention to that. and to create the strategy to grow together with 5.5 million people working for that is our mission and responsibility.

【解讀】剛才我也提到，汽車產業有廣泛的配套產業，從某種意義上說，我們有550萬人在這個產業工作，我們實現了自己的成長。因此，我們考慮將它們納入我們自己的思考中。但在較低層、更深層的各家企業的努力中，這些重大的結構性變革可能很難實施。所以對於每一個產業結構，我們都要引起大家的注意。制定與550萬員工共同成長的策略是我們的使命和責任。

When we talk about this, you might say that you were talking about just protecting the existing industrial structure and oftentimes ask that. But that's not the case. Just work together to achieve the transformation on the reform is what I'm talking about. As I mentioned earlier, unless we enhance productivity of automotive industry by leaps and balance, simply relying on the volume that sort of industrial structure is no longer sustainable. And therefore, change that business structure itself, is something that we need to do together with 5.5 million people working for this industry.

當我們談論這個問題時，你可能會說你只是在談論保護現有的產業結構，並且經常這樣問。但事實並非如此。我講的就是大家共同努力實現改革的轉變。正如我前面提到的，除非我們能夠跨越式、均衡地提高汽車工業的生產率，否則單純依靠數量的產業結構已經不再可持續。因此，改變業務結構本身是我們需要與這個行業的 550 萬人一起做的事情。

I'm not saying that the existing structure you locate. I'm saying working with 5.5 million people, let's achieve change. Unless the supply chain overall is engagement to change the industry can not be viable, not just to the working alone. And that's why we are saying that let's work together to change the future. So vis-a-vis suppliers and data, we have decided on this support through our spending and investment.

我並不是說你找到的現有結構。我的意思是，與 550 萬人合作，讓我們實現改變。除非整個供應鏈都參與到變革中來，否則這個產業就不可能是可行的，而不僅僅是單獨工作。這就是為什麼我們說讓我們共同努力改變未來。因此，相對於供應商和數據，我們決定透過我們的支出和投資來提供這種支持。

[Interpreted] Many people raise the hands. I would like to entertain one more additional question to conclude the session. One last question. The person in the second row, please?

【解讀】很多人舉手。我想再提出一個問題來結束本次會議。最後一個問題。請問第二排的人嗎？

[Interpreted] (inaudible) I have a question on your investment to dealer. In the SDV, you mentioned the AI is emphasized. The generative AI has become a big one to change the society, especially in the last one year. How Toyota would deal with this GenAI? Are you going to create a service here, or do you invest uniquely to the AI data center?

[解釋]（聽不清楚）我有一個關於您對經銷商的投資的問題。在SDV中，您提到強調AI。生成式人工智慧已成為改變社會的一大因素，尤其是在過去的一年。豐田將如何應對 GenAI？您打算在這裡創建服務，還是專門投資人工智慧資料中心？

And my second question is, it's related to -- about the semiconductor strategy, if you have any changes in (inaudible) the second plant where you're investing? And then, Sato, you're also investing there. But do you have any change in your semiconductor strategy When we look at those investment practices.

我的第二個問題是，它與半導體策略有關，您投資的第二家工廠（聽不清楚）是否有任何變化？然後，佐藤，你也在那裡投資。但是當我們審視這些投資實踐時，您的半導體策略有什麼改變嗎？

[Interpreted] Thank you for your question. Generative AI and our thoughts on AI. And about the semiconductor strategy will be responded by Mr. Miyazaki. So first of all, AI, there are different ways that the automotive industry is integrating AI like quality check, the decision and inspection is done by AI. And many other control like operation and recognition in other areas, this even the turning and running the vehicles, AI is already being used, especially mentioned that the Generative AI will bring about a huge barrier to cause the game change. So Generative AI, one thing it can change us is that the autonomous vehicle quality will be upgraded by AI, the safer and more comfortable vehicle and secure vehicles will be achieved AI, and that's something we should apply here. And generative AI has advantage that is to say for customers. their expected the level and then through the proposal that the knowledge can be gained by generative AI.

[解釋]謝謝你的提問。生成式人工智慧和我們對人工智慧的看法。關於半導體策略，宮崎先生將做出回應。首先是人工智慧，汽車產業有多種方式整合人工智慧，例如品質檢查，決策和檢查是由人工智慧完成的。還有很多其他的控制，例如其他領域的操作和識別，甚至車輛的轉彎和行駛，人工智慧已經在使用，特別提到生成式人工智慧將帶來巨大的障礙，導致遊戲的改變。所以生成式AI，它能改變我們的一件事是，自動駕駛汽車的品質將透過AI來升級，透過AI實現更安全、更舒適的車輛和安全的車輛，這是我們應該在這裡應用的。生成式人工智慧對於客戶來說具有優勢。他們期望達到的水平，然後透過建議可以透過生成式人工智慧獲得知識。

In other words, the defined -- the SDV will offer new values and the generative AI will be a key function to really do that offer the value. When you apply that to mobility, what is important consideration is that you have to have this computation resources and capability has been secured. Otherwise, you cannot quickly respond to that, because offer to service depends on that service speed so that you have to have the computation resources and telecommunication should be established with security.

換句話說，定義的 SDV 將提供新的價值，而生成式人工智慧將成為真正提供價值的關鍵功能。當您將其應用於行動性時，重要的考慮因素是您必須確保這種運算資源和能力得到保障。否則，您無法快速回應，因為服務的提供取決於該服務的速度，因此您必須擁有計算資源，並且應該安全地建立電信。

Those are 2 aspects which are essential. Of course, not just at TMC, but many other partners will work together to try to build this kind of a new platform. So generative AI, as I mentioned, is where we prioritize and make investment in this generative AI.

這是至關重要的兩個面向。當然，不只是TMC，許多其他合作夥伴也會共同努力建立這樣一個新的平台。因此，正如我所提到的，生成式人工智慧是我們優先考慮並投資於生成式人工智慧的地方。

[Interpreted] Thank you for your question. About semiconductor strategy. The shortage of semiconductor was a time we recognized we were focused on Tier 1, and we depended on Tier 1 to do communication with old network, we reflected upon that. After that, we try to have a more direct dialogue with semiconductor companies, and we have more direct communication. And one of the examples is the [Germain] Toyota and then TSMC have a good relation. Because of that new relation recently, we invested in Kumamoto recently. So that's our background.

[解釋]謝謝你的提問。關於半導體戰略。當半導體短缺的時候，我們認識到我們專注於第 1 層，我們依賴第 1 層與舊網路進行通信，我們對此進行了反思。之後我們嘗試跟半導體公司有更直接的對話，我們有更直接的溝通。例子之一是[Germain]豐田和後來的台積電有很好的關係。由於最近的新關係，我們最近在熊本進行了投資。這就是我們的背景。

The Sato's already mentioned. In the future, autonomous driving will become very important, high performance of semiconductor is crucial for automobiles. So in that sense, the (inaudible) to the more high level of the semiconductor needs to be supplied and produced stably. So that kind of good relation should be built with the different semiconductor suppliers and we'd like to further enhance this relationship so that (inaudible) addition (inaudible) is TSMC and our relationship needs to be further strengthened.

佐藤已經提過。未來，自動駕駛將變得非常重要，半導體的高性能對於汽車至關重要。因此，從這個意義上說，（聽不清楚）更高水準的半導體需要穩定供應和生產。因此，應該與不同的半導體供應商建立這種良好的關係，我們希望進一步加強這種關係，以便（聽不清楚）添加（聽不清楚）是台積電，我們的關係需要進一步加強。

And with other semiconductor companies, we would like to build a good solid relationship.

我們希望與其他半導體公司建立良好且牢固的關係。

[Interpreted] So about the investment value, the same as before? Or is there no additional investment in semiconductor?

【解讀】那麼關於投資價值，跟以前一樣嗎？還是沒有額外投資半導體？

[Interpreted] The number presented today, it does not include additional new investment.

【解讀】今天公佈的數字，不包括新增投資。

[Interpreted] Thank you very much. So we are behind the schedule, but this concludes all the question-and-answer session. This concludes the financial results presentation on FY 2024 so that the speakers now stand up, please. So again, thank you very much for your time to attend this conference today. Thank you very much.

[解釋]非常感謝。所以我們落後於計劃，但所有問答環節到此結束。 2024 財年財務業績報告到此結束，現在請發言者起立。再次非常感謝您抽出時間參加今天的會議。非常感謝。

[Portions of this transcript that are marked Interpreted were spoken by an interpreter present on the live call.]

[本文字記錄中標示為「已翻譯」的部分是由現場通話中的口譯員說出的。