豐田汽車 (TM) 2025 Q2 法說會逐字稿

(audio in progress) year '25 Q2 financial results. About the document to be presented today, currently, it is 13.55, 5 minutes to 2:00 PM. We have just disclosed the financial results documents, which will be projected on the screen today without any physical documents. However, the PPT presentation materials are made available at IR page of TMC website for download. We will be starting shortly. Thank you for your patience.

（音訊正在進行中）25 年第二季財務業績。關於今天要提交的文件，目前是 13.55，還有 5 分鐘到下午 2:00。我們剛剛披露了財務業績文件，今天將在螢幕上投影，沒有任何實體文件。不過，PPT演示材料可以在TMC網站的IR頁面上下載。我們很快就會開始。感謝您的耐心等待。

Ladies and gentlemen, thank you very much for joining us today. Now we would like to begin our preps media briefing on fiscal year '25 Q2 financial results briefing. I am EDA from Corporate Communications. It is my pleasure to serve you as your emcee today. First of all, I would like to invite General Manager Yamamoto of Finance Division for the outline of the financial results.

女士們、先生們，非常感謝你們今天加入我們。現在我們要開始準備關於 25 財年第二季財務業績簡報的媒體簡報會。我是來自企業傳播部的 EDA。我很高興今天能夠擔任你們的主持人。首先請財務部山本總經理介紹財務業績概要。

We would like to express our heartfelt appreciation to our customers around the world who chose us, as well as our shareholders, dealers, and suppliers who support us. We will now explain the summary of the financial results. Our operating income for the first half of this fiscal year was JPY2,464.2 billion. Despite the impact of production halts and additional expenses, we managed to achieve operating income nearly on par with the same period of the previous fiscal year by strengthening our foundations and improving our business base through everyone's participation. We would like to express our appreciation to our stakeholders, including suppliers and dealers who support us.

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。我們現在將解釋財務業績摘要。本財年上半年營業收入為24,642億日圓。儘管受到停產和額外費用的影響，但透過大家的參與，我們鞏固了基礎，改善了業務基礎，實現了與上一財年同期基本持平的營業收入。我們要向我們的利害關係人表示感謝，包括支持我們的供應商和經銷商。

The full year forecast is JPY4,300 billion, which remains unchanged from the previous forecast. To strengthen the foundations of car manufacturing, we will increase our investment in human resources and growth areas to JPY830 billion for the full year. Additionally, we aim to maintain and enhance our earnings power through measures such as controlling incentives and increasing value chain earnings, while restoring production volume in the second half of this fiscal year.

全年預測為4.3兆日元，與先前的預測保持不變。為了強化汽車製造的基礎，全年將在人力資源和成長領域的投資增加到8,300億日圓。此外，我們的目標是透過控制激勵措施和增加價值鏈收益等措施來維持和增強我們的獲利能力，同時在本財年下半年恢復產量。

As for shareholder returns, to reward our long-term shareholders and with our policy to increase dividends in a stable and continuous manner, we will raise the interim dividend by JPY10 to JPY40 per share. The forecasted full-year dividend will be JPY90 per share, increased by JPY15.

股東回報方面，為了回饋長期股東，並配合穩定持續增加股利的政策，我們將中期股利每股上調10日圓至40日圓。預計全年股息為每股 90 日元，增加 15 日元。

First, let me explain our financial results for the first half ended September 2024. Consolidated vehicle sales for this period were at 4,556,000 units, which was 96% of that for the same period of the previous fiscal year. Toyota and Lexus vehicle sales were 5,029,000 units, which was 97.2% of such sales for the same period last year.

首先，讓我解釋一下我們截至2024年9月的上半年財務表現。豐田和雷克薩斯汽車銷量為5,029,000輛，佔去年同期銷量的97.2%。

Due to the impact of halting production to address certification issues, et cetera, sales volume decreased. In addition, the proportion of electrified vehicles increased to 44.4%, mainly due to the strong performance of HEV sales in North America, Europe, Asia and other regions. Consolidated financial results were sales revenue of JPY23,282.4 billion, operating income of JPY2,464.2 billion, income before income taxes of JPY2,732 billion, and net Income of JPY1,907.1 billion.

受認證問題等停產影響，銷售量下降。此外，電動車佔比提升至44.4%，主要得益於北美、歐洲、亞洲等地區混合動力車銷售的強勁表現。合併財務績效為銷售收入232,824億日圓、營業收入24,642億日圓、所得稅前收入27,320億日圓、淨利19,071億日圓。

Net income decreased significantly from the same period previous year, mainly due to valuation losses in foreign currency-denominated assets caused by exchange rate fluctuations. This represents the gap between the valuation gains from yen depreciation of the previous fiscal year and the valuation losses from yen appreciation in this fiscal year, so it does not indicate any actual deterioration in business.

淨利較上年同期大幅下降，主要是由於匯率波動造成外幣資產估值損失。這代表上一財年日圓貶值所帶來的估值收益與本財年日圓升值所帶來的估值損失之間的差距，因此並未顯示業務實際惡化。

I would like to explain the factors which impacted operating income year-on-year. We are steadily implementing investments to achieve sustainable growth together with our stakeholders as explained at the beginning of this fiscal year. For the first half, we made JPY180 billion in human resource investment, and JPY110 billion investment in growth areas.

我想解釋一下影響營業收入年比的因素。正如本財年年初所解釋的那樣，我們正在穩步實施投資，以與我們的利害關係人一起實現永續成長。上半年，我們在人力資源方面的投資為1800億日元，在成長領域的投資為1100億日元。

On the other hand, the effects of foreign exchange rates, cost reduction efforts, and marketing efforts increased operating income by JPY620 billion, despite sales volume and sales mix decreased operating income by JPY140 billion due to the impact of halting production. In addition, there were one-time expenses such as the certification issues for Hino Motors' engines in North America markets, leading to a decrease in operating income by JPY95 billion year-on-year.

另一方面，儘管由於停產的影響，銷售和銷售結構使營業收入減少了 1,400 億日元，但在匯率、降低成本和行銷活動的影響下，營業收入增加了 6,200 億日元。此外，日野汽車北美市場引擎認證問題等一次性費用，導致營業收入較去年同期減少950億日圓。

This shows operating income by geographical regions. Japan decreased due to decrease in sales volume and steps to strengthen foundation to suppliers. North America decreased due to deterioration in sales volume and sales mix and increase in labor costs. Europe and Asia increased mainly due to the cost reduction.

這顯示了按地理區域劃分的營業收入。日本由於銷售下降以及加強供應商基礎的措施而出現下滑。北美地區的銷售下降是由於銷售和銷售組合惡化以及勞動成本增加。歐洲和亞洲的成長主要是由於成本下降。

Operating income in our share of profit of investments accounted for using the equity method in China decreased due to mainly to an increase in sales expenses. Operating income in the financial success business increased largely due to an increase in loan balances.

我們在中國以權益法計算的投資利潤中的營業收入減少，主要是因為銷售費用的增加。財務成功業務的營業收入增加主要是因為貸款餘額的增加。

Now, shareholder returns. We decided to disclose dividend forecast to create an environment that is more conducive to investment by our shareholders. We will raise the interim dividend by JPY10 from the previous fiscal year, bringing it to JPY40 per share. The forecasted full year dividend will be increased by JPY15 to JPY90 per share. We will continuously increase dividends in a stable and continuous manner to reward our long-term shareholders.

現在，股東回報。我們決定揭露股利預測，以創造更有利於股東投資的環境。我們將把中期股利比上一財年提高10日圓，達到每股40日圓。預計全年股息將增加每股 15 日圓至 90 日圓。我們將持續穩定地增加股息，以回報我們的長期股東。

Regarding share repurchases, we will not increase the maximum limit as we already raised it by JPY200 billion in September. We will continue to conduct flexible share buybacks in response to the market.

關於股票回購，我們不會提高最高限額，因為我們已經在 9 月提高了 2000 億日圓。我們將繼續根據市場狀況進行彈性的股票回購。

Now, I will go on to the forecast for the fiscal year ending March 31, 2025. Taking into account, the decreases in sales volume in the first half and recovery in production in the second half, consolidated vehicle sales is expected to be 9,400,000 units, 98.9% of the previous forecast.

現在，我將繼續對截至2025年3月31日的財年進行預測。

Toyota and Lexus vehicle sales are expected to reach 10,100,000 units, 97.1% of the previous forecast. Electric vehicles will account for 46%.

豐田和雷克薩斯汽車銷量預計將達到1,010萬輛，為此前預測的97.1%。電動車將佔46%。

Now for the full year consolidated financial forecast, we have assumed the full year foreign exchange rate to be JPY147 to the US dollar and JPY161 to the euros. Our forecast will be sales revenues of JPY46 trillion, operating income JPY4,300 billion, income before tax JPY4,980 billion, net income to JPY3,570 billion.

現在，對於全年綜合財務預測，我們假設全年外匯匯率為147日圓兌1美元，161日圓兌1歐元。我們的預測是銷售收入為46兆日元，營業收入為4.3兆日元，稅前利潤為4.98兆日元，淨利為3.57兆日圓。

We will strengthen and accelerate investment in human resources and growth areas in the second half of this fiscal year while strengthening our foundations and maintaining our earnings power. The full year forecast remains unchanged at JPY4,300 billion. But we will strive to make some recovery from temporary negative factors with reinforced kaizen efforts.

我們將在本財年下半年加強和加速對人力資源和成長領域的投資，同時鞏固我們的基礎並維持我們的獲利能力。全年預測維持 4.3 兆日圓不變。但我們將透過加強改善力度，努力從暫時的負面因素中恢復過來。

Our CFO Miyazaki will share the details with you now.

我們的財務長宮崎現在將與您分享詳細資訊。

Thank you very much. Yoichi Miyazaki, the Executive Vice President and Chief Financial Officer, will explain the background of this financial results.

非常感謝。執行副總裁兼財務長宮崎洋一將解釋本次財務表現的背景。

I am Chief Financial Officer Yoichi Miyazaki. Although we have maintained our JPY4.3 trillion operating income forecast for the current fiscal year as mentioned earlier by Miyazaki -- by Yamamoto-san, the Chief Officer of Accounting Group, I would like to explain some initiatives we have been pursuing in connection with changes from our initial plan.

我是財務長宮崎洋一。儘管我們維持了宮崎駿會計集團首席官山本先生之前提到的本財年營業收入 4.3 兆日圓的預測，但我想解釋一下我們一直在採取的一些舉措與我們最初的計劃相比發生的變化。

This fiscal year, while maintaining our ability to earn JPY5 trillion, we are strengthening and accelerating our investment in people, including suppliers and dealers and investment in growth areas. We are taking such measures a step higher, expanding total investment to JPY830 billion.

本財年，我們在保持5兆日圓獲利能力的同時，正在加強和加快對供應商和經銷商等人員的投資以及對成長領域的投資。我們正在採取更進一步的措施，將總投資擴大到8,300億日圓。

We further plan to recover from the impact of the decrease in production volume in the first half of the fiscal year and the temporary negative factors related to Hino Motors by improvement efforts through activities to strengthen our work foundation. From here on, I would like to explain our improvement efforts.

我們還計劃透過加強工作基礎的活動來改善努力，從本財年上半年產量下降以及與日野汽車相關的暫時負面因素的影響中恢復過來。從這裡開始，我想解釋一下我們的改進工作。

The first effort is to recover production volume. In the first half of this fiscal year, domestic production volume was 1.53 million units, which was lower than the previous fiscal year's actual results and the initial forecast. This was due to the need to address the certification issues and taking time to re-examine our manufacturing environment and culture.

第一個努力是恢復產量。本財年上半年國內產量為153萬輛，低於上財年實際結果及初步預測。這是因為需要解決認證問題並需要時間重新審視我們的製造環境和文化。

With the top priority on safety and quality, we apologize for causing inconvenience and concerns. But in the second half, we will leverage our uniquely Toyota Foundation of car manufacturing that we have regained and aim to recover to 1.75 million units, which is a little more than the initial forecast. Our Indiana plant in the United States, which had partially halted operations, also restarted last month. And in the second half of the fiscal year, we expect to return to an annual growth production -- global production base of 10 million units.

由於安全和品質是重中之重，對於造成您的不便和擔憂，我們深表歉意。但下半年，我們將利用我們重新獲得的獨特的豐田汽車製造基礎，目標是恢復到 175 萬輛，比最初的預測要多一點。我們位於美國印第安納州的工廠部分停產，上個月也重新啟動。而在本財年下半年，我們預期產量將恢復到每年成長的水平——1,000萬台的全球生產基地。

The second effort is to reduce incentives. Although the COVID-19 pandemic and tight semiconductor supply and demand significantly reduced their inventory, we have been maintaining operations by having established a system based on what we have learned and realized.

第二個努力是減少激勵措施。儘管COVID-19大流行和半導體供需緊張大大減少了庫存，但我們根據所學和認識建立了一個系統，從而維持了運作。

Additionally, through in-store communications that values a trusting relationship with each customer, we have been able to continuously sell ever-better cars at appropriate transaction prices. Due to the appeal of our product and the accumulation of activities efforts in each region, we are forecasting lower sales expenses than initially expected.

此外，透過重視與每位客戶的信任關係的店內溝通，我們能夠以適當的交易價格持續銷售更好的汽車。由於我們產品的吸引力以及各地區活動努力的積累，我們預計銷售費用將低於最初預期。

The third effort is to expand the value chain earnings. This graph shows the trend in value chain sales revenues which have been increasing by more than JPY100 billion each year. A driving force behind this increase in value chain earnings is that our dealers have maintained the touchpoints with customers, leading the number of units retained significantly.

第三個努力是擴大價值鏈收益。該圖顯示了價值鏈銷售收入每年增加超過 1000 億日圓的趨勢。價值鏈收益成長背後的驅動力是我們的經銷商與客戶保持了接觸點，從而顯著領先了保留的單位數量。

Our steady efforts such as expanding the variety of measures packages and the introduction of extended warranties have led to results. Such efforts, which our European business, is at the forefront will be rolled out in other regions. Also, with the increase in SDVs, we will strengthen our hardware and software upgrade services, aiming to stabilize and expand our earnings in new domains.

我們不斷努力，例如擴大一攬子措施的多樣性和推出延長保固期，已經取得了成果。我們的歐洲業務處於領先地位的此類努力將在其他地區推廣。此外，隨著SDV的增加，我們將加強硬體和軟體升級服務，旨在穩定和擴大新領域的獲利。

From here, I would like to explain about strengthening our work foundation. Our goal is to shorten lead times company wide. To achieve this, among other things, we need to eliminate waste and redoing of work and make it possible for anyone to get their jobs done. Specifically, amid a shortage of human resources, we have been working company-wide across divisions and functions to create environments in which anyone can work and to improve what we call the rate of value-added work, which is the ratio of work that is truly meaningful that add value.

下面我就加強工作基礎做一下說明。我們的目標是縮短全公司的交貨時間。為了實現這一目標，除此之外，我們需要消除浪費和重複工作，讓每個人都能完成自己的工作。具體來說，在人力資源短缺的情況下，我們一直在全公司範圍內跨部門、跨職能，創造任何人都可以工作的環境，並提高我們所說的工作增值率，即工作價值的比率。真正有意義的增值。

There are two main things I would like to accomplish -- we want to accomplish. The first is to increase the speed at which we can respond to environmental changes in an age that future is hard to predict. And also, second is to improve our fundamental capabilities that will enable us to carry on Toyota's philosophy of leaving no one behind and producing happiness for all, even though the advances in vehicle functionality means that the full-line, multi-pathway car making is not easy.

我想要完成兩件主要的事情——我們想要完成。首先是在未來難以預測的時代提高我們應對環境變化的速度。其次，提高我們的基本能力，使我們能夠繼承豐田不讓任何人掉隊、為所有人創造幸福的理念，儘管車輛功能的進步意味著全線、多途徑的汽車製造正在變得越來越困難。容易。

As a specific example, we are currently advancing what we call within Toyota AREA 35 project, which aims to improve our rate of value-added work through integrated efforts involving development, production and sales. To meet the diverse needs of customers around the world, we tend to come up with numerous specifications for our vehicles, but some of them contribute little to sales.

舉個具體的例子，我們目前正在推進豐田AREA 35項目，該項目旨在透過開發、生產和銷售的綜合努力來提高我們的增值率。為了滿足世界各地客戶的多樣化需求，我們傾向於為我們的車輛制定多種規格，但其中一些規格對銷售的貢獻很小。

By improving our accuracy in forecasting customer needs, we can optimize the number and types of specifications and parts and thereby expanding the space for finished vehicle production and increasing development efficiency. Although our activities have just begun at our domestic plants, we have managed to create a production capacity of 80,000 units per year and additional development capacity equivalent to three vehicle model redesign projects.

透過提高客戶需求預測的準確性，優化規格和零件的數量和類型，從而擴大整車生產空間，並提高開發效率。儘管我們的國內工廠才剛開始，但我們已成功實現每年 80,000 輛的生產能力以及相當於三個車型重新設計項目的額外開發能力。

Toyota has 54 assembly plants worldwide. Going forward, we will expand our activities globally to create further growth drivers. Our efforts to shorten lead times as a part of our foundation strengthening also enhance the flexibility of our production readiness and project review for electric vehicles to adapt more effectively to changes in actual demand and make last minute investment decisions.

豐田在全球擁有 54 家組裝廠。展望未來，我們將在全球擴展我們的活動，以創造進一步的成長動力。作為鞏固基礎的一部分，我們努力縮短交貨時間，同時也提高了電動車生產準備和專案審查的靈活性，以更有效地適應實際需求的變化並做出最後一刻的投資決策。

This flexibility is particularly effective where Toyota's strategy includes having all options available, including hybrid electric vehicles because it maximizes its benefits and strengthens our competitive edge. Since it is a customer who ultimately chooses the product, we are preparing ourselves to build a system that can flexibly accommodate our customers' choices.

當豐田的策略包括提供所有可用選項（包括混合動力電動車）時，這種靈活性尤其有效，因為它可以最大限度地提高其效益並增強我們的競爭優勢。由於最終選擇產品的是客戶，因此我們正在準備建立一個能夠靈活適應客戶選擇的系統。

Internalizing battery technologies will be an important key to advancing the widespread use of our electrified vehicles. From that perspective, we are promoting in-house production of all types of batteries including ternary lithium, lithium iron phosphate, and all-solid-state batteries. This will enable us to develop optimal batteries for the cars that we want to make.

電池技術的內部化將是推動電動車廣泛使用的重要關鍵。從這個角度來看，我們正在推動三元鋰、磷酸鋰、全固態電池等各類電池的自主生產。這將使我們能夠為我們想要製造的汽車開發最佳電池。

At the same time, an important key factor to any battery development and production is higher production efficiency. We are working to ensure production flexibility such as common usage of batteries for battery electric vehicles and plug-in hybrid electrical vehicles so that we can respond to any customers' needs.

同時，任何電池開發和生產的一個重要關鍵因素是更高的生產效率。我們正在努力確保生產靈活性，例如純電動車和插電式混合動力汽車電池的通用使用，以便我們能夠滿足任何客戶的需求。

Because we will ultimately need to internalize production engineering for aptly mass-producing different types of batteries in the same plant and buildings, we made battery manufacturers energy, Primearth EV Energy, our wholly owned subsidiary. It began operations as Toyota Battery in October 2024. A steady progress in strengthening our foundation for our battery strategy as well.

由於我們最終需要將生產工程內部化，以便在同一工廠和建築物中適當地大規模生產不同類型的電池，因此我們將電池製造商作為能源公司，即我們的全資子公司Priearth EV Energy。它於 2024 年 10 月開始以豐田電池的名義運作。

Finally, Toyota cannot change the future of automotives on its own. We need cooperation from all our stakeholders. To this end, we would like to use the resources made available. Thanks to our many stakeholders in such a manner to grow together with our customers, shareholders, suppliers, dealers, employees and local communities. We look forward to your continued support.

最後，豐田無法僅憑一己之力改變汽車的未來。我們需要所有利害關係人的合作。為此，我們希望利用現有的資源。感謝我們眾多的利害關係人以這樣的方式與我們的客戶、股東、供應商、經銷商、員工和當地社區共同成長。我們期待您的繼續支持。

This concludes my presentation. Thank you very much for your attention.

我的演講到此結束。非常感謝您的關注。

Thank you very much. We would like to move on to the Q&A session. Those participants expect it to be on the stage, please come onto the stage.

非常感謝。我們想進入問答環節。希望上台的參與者請上台。

Once again, allow me to introduce to you the people on the stage: Executive Vice President and Chief Financial Officer, Yoichi Miyazaki; Chief Officer of Accounting Division Group, Masahiro Yamamoto; Chief Officer of Corporate Communications Group, Hiroyuki Ueda. Please be seated.

請容許我再次向大家介紹台上的人：執行副總裁兼財務長宮崎陽一；會計本部組長山本正宏；企業傳訊集團執行長上田博之。請入座。

Now, ladies and gentlemen, I would like to open the floor for Q&A. First of all, I would like to entertain questions from those participating in person. After stating your affiliation and name, please start your question. I would like to receive questions from as many participants as possible. I would like to ask you to limit to two questions at the maximum per person.

現在，女士們、先生們，我想開始問答環節。首先，我願意接受現場與會人員的提問。陳述您的隸屬關係和姓名後，請開始您的問題。我希望收到盡可能多的參與者提出的問題。我想請您限制每人最多提出兩個問題。

So at the left-hand side of this middle row.

所以在中間一排的左側。

Sugito of (inaudible) Newspaper. Thank you for this opportunity relating to certification issues or recall that caused of volume decrease. And in the first half, you explained that by increasing or recovering the production volume on the full year basis, you restore the expectations. But how can that be pursued together with your efforts, continuing efforts to consolidate, strengthen the work foundation? You also talked about the creation of reserve capacity and also the rate of value-added work, how can they be pursued simultaneously? I would like to ask Mr. Miyazaki to respond to this question.

（聽不清楚）報紙的 Sugito。感謝您提供這個與認證問題或導致數量減少的召回相關的機會。上半年，您解釋說，透過增加或恢復全年產量，可以恢復預期。但要如何透過你們的努力、不斷努力來鞏固、加強工作基礎呢？您還談到了儲備能力的創造和增值工作的率，如何同時追求？我想請宮崎先生回答一下這個問題。

Thank you for your question. Going forward, we will recover the production volume. But as we continue to make efforts to improve workplace, how we are going to address the situation in the workplace was the question. With the certification issue and quality issue, we have been having clear communication with the workplace and we were able to confirm to the extent to which -- we were not able to really become aware of this.

謝謝你的提問。展望未來，我們將恢復產量。但當我們繼續努力改善工作場所時，我們將如何解決工作場所的情況成為問題。對於認證問題和品質問題，我們一直與工作場所進行了明確的溝通，我們能夠確認我們無法真正意識到這一點。

After the certification issue, Chairman Akio took initiative in having [Digi Shuken] for TPS. Before that, we have been receiving voices from work sites ourselves staying in the conference room. But with Chairman Akio starting and initiating those efforts, the top executives like ourselves decided to go to the [Gemba] that is work site.

在認證問題發生後，Akio董事長主動提出了TPS的[Digi Shuken]。在此之前，我們一直在會議室裡不斷收到來自工作現場的聲音。但隨著董事長 Akio 開始並發起這些努力，像我們這樣的高階主管決定前往工作現場 [Gemba]。

They're not just asking for the issues they are confronted with. We also asked them, what can we do to help you achieve your work? And through those including the pain point, we made efforts to improve the environment. And we came to realize that there are many cases in which we are not able to become aware of the difficulties faced by Gemba people.

他們不只是詢問他們面臨的問題。我們也問他們，我們可以做些什麼來幫助您完成工作？並透過那些包括痛點在內的努力來改善環境。我們逐漸意識到，在許多情況下我們無法意識到現場人所面臨的困難。

And that caused some time to be used for that purpose. But since around September this year, this production stabilized in the actual work sites. And we were able to ensure the required quality level. And therefore, since October striking a good balance between work and holidays, as well as weekend works, we were able to restore some production volume.

這導致需要一些時間用於此目的。但今年9月左右開始，實際工地的產量趨於穩定。我們能夠確保所需的品質水準。因此，從10月份開始，我們在工作和假期以及週末工作之間取得了很好的平衡，我們能夠恢復一些生產量。

So having good communication, dialogue with people on the work site, we have been saying that we would bring back to the initial level of the production volume expectation. As I mentioned earlier, the environment in which anyone can make their jobs done and also anyone can take action in the work site are the keys in this. Not ending efforts here, but we intend to continue with those efforts. We would like to pursue both this and the creation of reserve capacity.

因此，透過與現場人員進行良好的溝通和對話，我們一直在說我們將把產量恢復到最初的預期水平。正如我前面提到的，任何人都可以完成工作、任何人都可以在工作現場採取行動的環境是關鍵。我們的努力並沒有結束，但我們打算繼續這些努力。我們希望同時追求這一點和建立儲備能力。

One other question. You already announced that various companies within the Toyota Group announced their financial results including some suppliers. And they are characterized by reduction in both top line and bottom line and down on the revision of the full year forecast. And what is your assessment of those, as you also mentioned in your presentation, you have expanded to JPY830 billion the investment for suppliers and human resource activities? So including that, I would like to ask Mr. Miyazaki to respond to that.

還有一個問題。您已經宣布，豐田集團內的多家公司公佈了財務業績，其中包括一些供應商。它們的特點是營收和利潤雙雙下降，並下調全年預測。正如您在演講中提到的那樣，您對供應商和人力資源活動的投資已擴大到 8300 億日元，您對此有何評價？包括這一點，我想請宮崎先生對此做出回應。

Thank you very much. We announced produce production plans. And as the OEM, we have the responsibility of steadily accomplish those announced plans. And that point was strongly brought home to us in the first half, including secondary and third tier. It is -- we should not change the plan once announced passively. And also, even if the contents were not clear, but we need to implement those plans once announced.

非常感謝。我們宣布了生產計劃。作為原始設備製造商，我們有責任穩步完成這些已宣布的計劃。我們在上半場，包括二級和三級比賽中，深刻地體會到了這一點。就是——計劃一旦被動宣布，我們就不應該改變。而且，即使內容不明確，但一旦宣布，我們就必須執行這些計畫。

So by looking at the results of different companies within the group, we are trying to make every effort to achieve the plans. So by re-examining our position and by restoring the strong capability, we would like to make sure that our initiatives will lead to the joint growth with the suppliers and other companies. About the supplier support, Mr. Yamamoto will explain to you in details.

因此，透過考察集團內不同公司的業績，我們正在盡一切努力實現計劃。因此，透過重新審視我們的定位並恢復強大的能力，我們希望確保我們的舉措將導致與供應商和其他公司的共同成長。關於供應商支持，山本先生將為您詳細講解。

Thank you for your question. Financial results announced by different entities within the Toyota Group, we looked at them. And in the first half, during which we halted production, and that really impacted the suppliers.

謝謝你的提問。我們研究了豐田集團內不同實體所公佈的財務表現。上半年，我們停止了生產，這確實對供應商產生了影響。

As Miyazaki mentioned earlier, first of all, in the second half, we will make sure that we can solidly produce vehicles. And by doing so, we would like to recover the production volume. To support the suppliers is based upon the concept of jointly beneficial efforts. And by deciding concrete amounts, we have been conducting efforts since the beginning of this financial year.

正如宮崎駿剛才所提到的，首先下半年我們要確保能夠紮實地生產車輛。透過這樣做，我們希望恢復產量。支持供應商是基於共同受益的理念。透過確定具體金額，我們自本財年年初以來一直在努力。

And in the first half already, it reach JPY180 billion and JPY115 billion relates to the support specifically to suppliers. And the amount or numbers are not the only essential factors that is to say by us working in the Gemba and participating in improvements and the necessary financial resources for improvement will be spent for that purpose.

上半年已達 1,800 億日元，其中 1,150 億日圓用於專門針對供應商的支援。數量或數量並不是唯一的要素，也就是說，我們在現場工作並參與改進，並且為此目的將花費用於改進的必要財務資源。

As you refer to Toyota Times, you may be able to find some specific details. But by ourselves working in the Gemba in terms of logistic improvement, both income grows and outgoing grows, we need to avoid a situation where those will not crash with each other. And also, by making the work easier by introducing some karakuri-based equipment in some suppliers, the outdated facilities had broken, but the brake manufacturers are no longer producing those. But in that case, we decided to use the brakes used for RAV4, and that actually worked quite well.

當你查閱《豐田時報》時，或許能找到一些具體的細節。但是，透過我們自己在現場的物流改善、收入成長和支出成長，我們需要避免這些不會相互衝突的情況。此外，透過向一些供應商引入一些基於 karakuri 的設備，使工作變得更加容易，過時的設備已經損壞，但煞車製造商不再生產這些設備。但在這種情況下，我們決定使用 RAV4 所使用的煞車，而且效果確實很好。

So by us working in the actual work site of suppliers, not just in the primary but second and third tier suppliers, we were able to actually promote those initiatives. So not just spending money, but ourselves working together with suppliers is something that we would like you to focus on in observing.

因此，透過我們在供應商的實際工作現場工作，不僅在一級供應商，而且在二級和三級供應商中，我們能夠實際推動這些措施。所以不只是花錢，我們與供應商的合作也是我們希望大家重點觀察的。

Next question, please. Someone in the very first row, please wait for a microphone.

請下一個問題。第一排的人，請等待麥克風。

Thank you very much. I am [Yao] from [Nikkei, Delhi]. Thank you very much for this opportunity. I have two questions to Miyazaki-san.

非常感謝。我是來自[日經新聞，德里]的[Yao]。非常感謝您給我這個機會。我有兩個問題想問宮崎先生。

Now between April and September JPY1.9 trillion reduction of 25%. What were the factors behind that? And their business environment has not deteriorated and against which why you have posted losses? Actually, About the Chinese market you were once in a period of endurance. What is your view now? Has it changed? And are there any responses and measures that you have in mind for the Chinese market?

現在 4 月至 9 月之間減少了 1.9 兆日圓 25%。背後的因素是什麼？他們的商業環境並沒有惡化，為什麼你們會出現虧損？其實，關於中國市場，你們曾經處於一個忍耐的時期。您現在有何看法？它改變了嗎？針對中國市場您有什麼應對措施和措施嗎？

Well, thank you very much. I would like to respond to the first question, the net operating income or profit. Well, something I did not explain, the financial results well enough. So let me come back and talk about it.

嗯，非常感謝。我想回答第一個問題，淨營業收入或利潤。好吧，有些事情我沒有解釋，財務表現還不錯。那麼讓我回來談談這件事。

We have foreign currency denominated assets which have been devaluated because of the weaker yen. For example, we have the US dollars in cash as well as subsidiaries within the group lending and borrowing from each other, to and from each other in a dollar denominated form. In April and September last year, and this year's April compared the last year's starting line was JPY130 to the dollar as of end of September last year, JPY150 to the dollar because of the depreciation of the yen. Meaning that our dollar assets as we evaluate that with yen terms, we inflate that value.

我們的外幣計價資產因日圓疲軟而貶值。例如，我們擁有美元現金，以及集團內子公司之間以美元計價的相互借貸。去年4月和9月，和今年4月相比，去年的起跑線是1美元兌130日元，去年9月底，由於日圓貶值，1美元兌150日圓。這意味著當我們用日圓來評估我們的美元資產時，我們會誇大該價值。

Now this year JPY151 to the dollar, but that was a starting point. Over the past six months, once it hit JPY160, it's still fluctuating. Today, it's something like JPY152. JPY142 or JPY143 to the dollar was the rate in September, so we saw some appreciation of the yen.

今年，日圓兌美元匯率為 151，但那隻是一個起點。過去六個月，一旦觸及160日元，仍在波動。今天，大約是 152 日元。 9 月的匯率是 1 美元兌換 142 日圓或 143 日圓，因此我們看到日圓有所升值。

Last year, yen depreciated, leading to greater profit. And stronger yen this year reduced our operating income. So the total of that was something like JPY500 billion or JPY600 billion that you have mentioned. Now, it is a matter of how we look at the assets that we have to reflect that on our Japanese yen denominated PL.

去年，日圓貶值，導致利潤增加。今年日圓走強減少了我們的營業收入。因此，總額約為您提到的 5000 億日元或 6000 億日元。現在，問題是我們如何看待資產，我們必須反映在以日圓計價的損益上。

Does that mean deterioration in our competitiveness in business?

這是否意味著我們的商業競爭力下降？

No, this is something that is repeated every year. Something that we experienced as loss this year will be regarded as the profit next year. So it is the very natural, of course, of fluctuation that we have to live with in the world of yen and the dollar.

不，這是每年都會重複的事情。今年虧損的東西，明年就會被視為獲利。因此，在日圓和美元的世界裡，我們必須忍受波動，這是很自然的。

If you're still unclear about it, well, in new forecast income before tax has been changed as well. Well, actually, if I repeat the same explanation, it will be a very long lecture. But long term, it's rather stable. It's only a temporary fluctuation because of the ForEx.

如果您仍然不清楚，那麼，新的預測稅前收入也發生了變化。嗯，實際上，如果我重複同樣的解釋，這將是一個很長的講座。但長期來看，還是比較穩定的。這只是外匯市場造成的暫時波動。

Now, I would like to talk about China, your second question. Running up to September, our sales was about 90% of the previous year. At the beginning of the year, I talked to you about the endurance about the Chinese market. Well, we really endured and we somehow managed to achieve this level of sales.

現在我想談談你的第二個問題，關於中國。截至9月份，我們的銷售額約為去年同期的90%。今年年初，我跟大家談過中國市場的承受力。好吧，我們確實堅持了下來，並以某種方式設法達到了這樣的銷售水平。

And you might have expected a greater drop in profitability. But now compared to Chinese domestic manufacturers, our level of profitability is on par with them. In the past, we made lots of efforts. And as a result of that, when the competition was not as intensive, we enjoyed the first-mover advantage. But now with this intensifying competition, we still maintain the competitiveness and profitability on par with leading domestic manufacturers in China. So that's the current situation.

您可能會預期獲利能力會出現更大的下降。但現在與中國國內製造商相比，我們的獲利水準與他們不相上下。過去，我們做了很多努力。因此，當競爭不那麼激烈時，我們享有先發優勢。但現在隨著競爭的加劇，我們仍然保持著與中國領先的國內製造商相當的競爭力和獲利能力。這就是目前的情況。

I might have told you this before. As we look at the needs of the Chinese customers, rather than comfort of ride, they value the comfort of sitting in the car. Actually, there are large households in China with multiple generations. So before going home, many drivers would like to enjoy being by themselves in the car. That's the reason why they look for comfort of being in the car rather than comfort of riding.

我以前可能已經告訴過你了。當我們看到中國客戶的需求時，他們更重視的是車內的舒適度，而不是乘坐的舒適度。事實上，中國存在著多代同堂的大家庭。所以在回家之前，很多司機都希望享受一個人在車上的時光。這就是為什麼他們尋求車內的舒適度而不是乘坐的舒適度。

The parking lots are limited and smaller. Therefore, autonomous driving is of high demand. And since they want to enjoy their time before going home, they do not want to run the engines. So that's an interesting demand from the Chinese market as well.

停車場有限且較小。因此，自動駕駛的需求量很大。由於他們想在回家之前享受美好時光，因此他們不想運行引擎。這也是中國市場的一個有趣的需求。

And also, the way Chinese drivers drive, we came to learn that, well, as we make cars globally, stability and high speed in highways is something that you would expect. But Chinese drivers would not speed very much in highways. We came to understand that quite recently.

而且，從中國司機的駕駛方式來看，我們逐漸了解到，隨著我們在全球製造汽車，高速公路上的穩定性和高速性是您所期望的。但中國司機不會在高速公路上超速行駛。我們最近才明白這一點。

So it's not the Japanese manufacturer making cars for Chinese. But probably, it will be better to enable Chinese people to make better cars for Chinese consumers. That's how we have made our mindset change. So I would like you to look at us in that perspective because we are now making preparations for that. After the time of endurance, we will be rebuilding our operations centering around production and also make further efforts in maintaining the dealership networks.

所以這不是日本製造商為中國人生產汽車。但也許，讓中國人為中國消費者製造更好的汽車會更好。這就是我們改變心態的方式。所以我希望你們從這個角度來看待我們，因為我們現在正在為此做準備。熬過一段時間後，我們將重建以生產為中心的運營，並進一步努力維護經銷商網路。

Currently, including our dealership, we do have customers who own our cars, and we would like them to remain within our channel. And including the value chain activities, we will be making further efforts in that direction. I hope I answered your question. Thank you very much.

目前，包括我們的經銷商在內，我們確實有擁有我們汽車的客戶，我們希望他們留在我們的通路內。包括價值鏈活動，我們將朝這個方向進一步努力。我希望我回答了你的問題。非常感謝。

Now let me move to the next person at the front row in the center of the room, please.

現在請讓我轉到房間中央前排的下一個人。

[Hayakawa of NHK]. Thank you very much for this opportunity. Today, earlier, Mr. Miyazaki mentioned that in the second half on the global basis, you will bring to the production volume pace of 10 million. For domestically, you mentioned that you would like to recover production volume by also pursuing reserve capacity (inaudible). And you also talked about China and North America, you see reduction in operating income. So what is your view and assessment of the US market?

[NHK早川]。非常感謝您給我這個機會。今天早些時候，宮崎先生提到，下半年在全球範圍內，將把產量推向1000萬部的步伐。對於國內，您提到希望透過追求儲備產能來恢復產量（聽不清楚）。您還談到了中國和北美，您看到營業收入的減少。那麼您對美國市場有何看法與評價？

And secondly, the Presidential election about opening is going on, and the two candidates have different policy for automotive industry. So how do you intend to address those result outcome of presidential election?

其次，關於開放的總統選舉正在進行，兩位候選人對汽車產業的政策不同。那麼您打算如何處理總統選舉的結果呢？

About the first question, the North American situation, allow me to respond to that aspect of your question. At this moment, as we conduct production operations, as far as automotive market is concerned, we have noticed in a straightforward manner any change in the economic activities as mentioned earlier. Thus far, we are taking advantage of what we have learned. We have been continuing lean operation in North America. But because our operation is so lean in North America as well, and since we did have a production halt in Indiana plant that caused the sales reduction due to the shortage of inventory as well. So that's one aspect.

關於第一個問題，北美的情況，我從這方面回答你的問題。此時此刻，我們在進行生產經營的過程中，就汽車市場而言，我們已經很直觀地註意到前面提到的經濟活動的任何變化。到目前為止，我們正在利用我們所學到的知識。我們在北美一直持續精實營運。但由於我們在北美的營運也非常精益，而且我們印第安納州的工廠確實停產了，這也導致了由於庫存短缺而導致銷量下降。這是一方面。

But as I mentioned earlier in October, the Indiana plant started its operation. It is now in the phase of recovery production volume. Given the current situation in North America starting in the first quarter of next year, probably the production volume can be brought up back to the normal level. And so based upon that, we would like to formulate the plan for the period beyond.

但正如我在十月早些時候提到的，印第安納工廠開始運作。目前已進入產量恢復階段。鑑於北美目前的情況，從明年第一季開始，產量可能會恢復到正常水平。在此基礎上，我們想制定今後一段時間的計畫。

Including North America, we did have certification issues or other things from which we made an important learning. This may not be the appropriate way of expressing that. But by having good communication and dialogue with the people working on the work site, we did stumble once. But when we tried to bring ourselves up after the stumbling, we would like to stand up by a step or two steps forward compared with where we were.

包括北美在內，我們確實遇到了認證問題或其他問題，我們從中學到了重要的教訓。這可能不是表達這一點的適當方式。但透過與現場工作人員良好的溝通和對話，我們確實絆倒了一次。但當我們跌倒後試圖站起來時，我們願意比原來的地方向前邁出一兩步。

So those were the things we discussed with the employees on the work site. And because we stumbled, we looked at the new view or seen as well. So learning from that, we would strengthen our capabilities and foundation solidly as we move forward.

這些就是我們在工作現場與員工討論的事情。因為我們跌倒了，所以我們看到了新的觀點或也看到了。因此，從中吸取教訓，我們將在前進的過程中夯實我們的能力和基礎。

The second aspect will be responded to by Ueda-san.

第二個方面將由上田先生來回應。

Your question was relating to our assessment of the outcome of the presidential election. The voting has been reported since the beginning of this morning, and we have been focused on that observing that. But the actual outcome of this election will be announced sometime afterwards. So we will simply continue to observe very carefully the outcome of this election.

你的問題涉及我們對總統選舉結果的評估。從今天早上開始就已經報道了投票情況，我們一直在關注這一情況。但這次選舉的實際結果將稍後公佈。因此，我們將繼續非常仔細地觀察這次選舉的結果。

But as we always mentioned, at any rate, no matter what the country's policy or the administration may be, as far as Toyota is concerned, our objective and aspiration is to become the best-in-town company in that community or in the country. The energy situation varies from country to country. Customer needs varies from country to country. So by producing good products that is aligned with the needs and wants of the customers, we would like to deliver those products in a timely manner. So this is the basics that we will continue to maintain without any change.

但正如我們一直提到的，無論如何，無論國家的政策或政府如何，就豐田而言，我們的目標和願望是成為該社區或全國最好的公司。各國的能源狀況各不相同。不同國家的客戶需求各不相同。因此，透過生產符合客戶需求和願望的優質產品，我們希望及時交付這些產品。所以這是我們將繼續維持的基礎，不會有任何改變。

In ultimate analysis, since our products are chosen by various customers throughout the world, but we will continue to support the movement and mobility, the freedom of mobility of all the people throughout the world. And we would like to continue such business going forward.

歸根結底，由於我們的產品被世界各地的不同客戶所選擇，但我們將繼續支持世界各地所有人的運動和流動性、流動性自由。我們希望繼續開展此類業務。

Thank you very much. That person wearing a white jacket.

非常感謝。那個人穿著一件白色的外套。

Thank you very much. I am [Nagai from TV Tokyo]. I have two questions to Miyazaki-san. Number one, as has been mentioned, the investment in people, human resources, in second quarter financial results, you have struggled. And at this point in time, what is the intention of increasing your investment in human resources?

非常感謝。我是[東京電視台永井]。我有兩個問題想問宮崎先生。第一，正如已經提到的，在人員、人力資源方面的投資，在第二季度的財務表現中，你一直在苦苦掙扎。而此時此刻，你們加大人力資源投入的意圖是什麼？

And also, in the United States, reducing the incentives to achieve this year's forecast. The competition is intensifying in North America as well. Although you may have been able to maintain or ensure your inventory, are you very sure about your profitability with the reduced incentives?

此外，美國也減少了實現今年預測的激勵措施。北美的競爭也正在加劇。儘管您可能能夠維持或確保您的庫存，但您對激勵措施減少後的盈利能力非常確定嗎？

Well, I would like to respond to your question. Well, I do not think that we have struggled in the past quarter. 370,000 employees and affiliates of ours worked on Gemba while not being able to build cars. What are the concerns? What are the pain points? What are the improvements?

嗯，我想回答一下你的問題。嗯，我認為我們在過去的一個季度並沒有陷入困境。我們的 37 萬名員工和附屬公司在現場工作，但無法製造汽車。有哪些擔憂？有哪些痛點？有哪些改進？

Even when we are not making cars, we were making such efforts, taking a step forward each day and each hour. The efforts to strengthen ourselves as Miyazaki-san mentioned, and the result is JPY2,464 million --billion, excuse me. Actually, this is the very first time that we realize that level of profitability. So this is a result of Gemba force of 370,000 employees as well as our stakeholders.

即使我們不生產汽車，我們也在做出這樣的努力，每天、每小時都向前邁進。正如宮崎先生所說的那樣，我們努力加強自身實力，結果是24.64億日元，對不起，是10億日元。事實上，這是我們第一次實現這種獲利水準。這是由 37 萬名員工以及我們的利害關係人組成的現場力量的結果。

Now this investment for human resources, as Miyazaki-san mentioned earlier, if the management, top executives just wait in the meeting rooms, that would not solve the problem. We have to visit on site, the Gamba where pains do exist. That's how we would resolve those pain points. And that is something that we started doing. Therefore, compared to the numbers initially expected, we now have additional profitability factor added and that allows us to make further investment in human resources, not only within TMC, but with the subsidiaries, and overseas companies, suppliers. We are applying this mindset to all of them, and the numbers you see is a result of that, the result of all that.

現在對於人力資源的投資，正如宮崎先生剛才所提到的，如果管理階層、高層只是在會議室裡等待，那是解決不了問題的。我們必須實地考察，崗巴確實存在痛苦。這就是我們解決這些痛點的方法。這就是我們開始做的事情。因此，與最初預期的數字相比，我們現在增加了額外的獲利因素，這使我們能夠對人力資源進行進一步投資，不僅在TMC內部，而且與子公司、海外公司、供應商一起。我們正在將這種心態應用在所有人，你看到的數字就是這種心態的結果，所有這些的結果。

If I may supplement, for example, if we are to achieve certain numbers this year, are we happy as a management? The answer is no, because we look at 5.5 million people stakeholders for elevating this automotive industry in this country. Therefore, investment in human resources is something that we have made decisions very, very easily.

我可以補充一下，例如，如果我們今年要達到一定的數字，作為管理階層我們滿意嗎？答案是否定的，因為我們關注 550 萬名利害關係人來提升這個國家的汽車產業。所以說，人力資源的投資是我們非常非常容易做出的決定。

Now, as for the incentive reduction in the United States where the competition is getting more intensive, other companies are increasing incentives. Well, if we do not follow up, so there may be a factor for customers to hesitate to put our products in the shopping cart.

現在，對於競爭更加激烈的美國的激勵減少，其他公司正在增加激勵。那麼如果我們不跟進的話，那麼顧客可能會猶豫是否要把我們的產品放入購物車。

So as we make our plans, we talked with our regional CEOs in terms of their expected sales, and we came to our initial plans for this year. Our product value and strength have not been accentuated in the market. Therefore, we are now confident that we are able to leverage on such product, power, and attractiveness. And if our competitors would watch what we do, they may follow suit. Therefore, I think we are confident about incentive reduction.

因此，在製定計劃時，我們與區域執行長討論了他們的預期銷售額，並製定了今年的初步計劃。我們的產品價值和實力還沒有在市場上凸顯。因此，我們現在有信心能夠利用這樣的產品、力量和吸引力。如果我們的競爭對手願意觀察我們所做的事情，他們可能會效仿。因此，我認為我們對於減少激勵是有信心的。

Now about the US market, hybrid vehicles are attracting more attention. Would that also be a factor behind reducing your incentives?

現在在美國市場，混合動力車越來越受到關注。這也會成為減少你的激勵措施的因素嗎？

Well, hybrid, as a matter of fact, this is an area we have to do a better job of managing inventory. The inventory level is about half of that of conventional cars, and our customers have to wait for the delivery. But of course, it means that our hybrid cars are extremely popular, and the profitability level of hybrid vehicles is greater than that of conventional cars. So from that perspective, I think we are ensuring our competitiveness. Thank you.

嗯，混合動力，事實上，這是我們在庫存管理方面必須做得更好的領域。庫存水準約為傳統汽車的一半，我們的客戶必須等待交貨。但當然，這意味著我們的混合動力汽車非常受歡迎，混合動力汽車的獲利水平比傳統汽車更大。所以從這個角度來看，我認為我們正在確保我們的競爭力。謝謝。

Thank you very much. At this juncture. I would like to take questions from the participants online, and we'll come back to onsite participants later on. (Event Instructions)

非常感謝。此時此刻。我想在線上回答與會者的問題，稍後我們會再回覆現場與會者。 （活動須知）

Now Bloomberg, Inajima, please? Inajima-san, can you be connected?

現在有請布隆伯格、稻島嗎？稻島同學，可以聯繫嗎？

Can you hear me? Inajima of Bloomberg.

你聽得到我嗎？彭博社的稻島。

Yes, we can hear you.

是的，我們能聽到你的聲音。

The first question. It's been asked earlier. My question also relates to the North American business. Operating income in the April, September reduced, decreased significantly from the same period previous year. Please elaborate on the factors behind that. And for the second half, you mentioned that you are going to curtail incentives. But what is the outlook of the operating income for North American market?

第一個問題。之前已經問過了。我的問題也與北美業務有關。 4月、9月營業收入減少，較去年同期大幅下降。請詳細說明背後的因素。對於下半年，您提到將削減激勵措施。但北美市場的營業收入前景如何？

Yes, in terms of the North American market and the first half and also the July, September, the reduction in that period was the gist of your question. In North America, to a certain extent, we had recall. And because of those, the production was halted or there has been some one-time expenses in this period.

是的，就北美市場而言，上半年以及7月、9月，那段時間的減少是你問題的要點。在北美，在某種程度上，我們有回憶。因此，生產被暫停，或在此期間產生了一些一次性費用。

Because of that, there has been some significant negative figure you see. And this may not be the appropriate way of putting it, but if that is added back and compared with the capability that we achieved in North America, that capability has been kept. That is to say the local workers have continued to work on improvement so that their earnings power has been maintained even with those issues.

因此，您看到了一些顯著的負數。這可能不是正確的表達方式，但如果將其加回去並與我們在北美實現的能力進行比較，那麼這種能力就被保留了。也就是說，即使有這些問題，當地工人仍在繼續努力改善，以便維持他們的收入能力。

The next question that relates to the strategically held equities, Denso and Aisin. Some of those shares have been sold and unloaded, but some group companies do hold substantial shares. So what is the progress made on discussion with those owners of your shares? And to what extent you are going to address those issues, the disposal of those?

下一個問題涉及戰略持有的股票電裝和愛信。其中一些股份已被出售和卸載，但一些集團公司確實持有大量股份。那麼與你們股東的討論進度如何？您將在多大程度上解決這些問題以及如何處置這些問題？

And is there any chance of reducing that ownership to and below 20%? And if you have any specific policy of group holdings of shares, for example, with respect to KDDI, I think you still own 10% or so of KDDI. Do you have in mind of further reducing the KDDI shareholdings, for example?

是否有可能將所有權減少至 20% 或以下？而且如果你有什麼具體的集團持股政策，比如說KDDI，我覺得你還是持有KDDI 10%左右。例如，您是否考慮進一步減持 KDDI 持股？

Thank you for your question. As far as Toyota Group is concerned, the automotive industry covers the material industry to a new technology. So it is an industry where the comprehensive capability is tested. We announced Toyota's group vision earlier, and both weft and waft, those woven, and to the group consists of those horizontal and vertical lines. And that was mentioned by Chairman.

謝謝你的提問。就豐田集團而言，汽車產業涵蓋了材料產業到新技術。所以這是一個考驗綜合能力的行業。我們早些時候宣布了豐田的集團願景，緯線和緯線，那些編織的，以及由那些水平和垂直線組成的集團。這是主席提到的。

And the lineage that maintains the past and the future is the vertical fabric, and the working with partners is horizontal. And since this main relationship is maintained, there is a solid relationship between Toyota and other companies are maintained. The relationship with the group companies is personal relationship, ownership relationship, or business relationship. And based upon those, constantly, we have been conducting conversation and discussion on revision.

維繫過去與未來的血統是垂直結構，與夥伴的合作是水平結構。由於維持了這種主要關係，豐田與其他公司之間就維持了牢固的關係。與集團公司的關係可以是個人關係、所有權關係或業務關係。在此基礎上，我們不斷地進行修訂的對話和討論。

For they Denso and Aisin, 20%, as was mentioned earlier, has been maintained. And there has been some change that given that, are we going to reduce the ownership by other entities within group? That is not the case. We do not exclude any options, not just insisting on 20% ownership.

對於電裝和愛信來說，如前所述，維持了 20%。考慮到這一點，我們是否會減少集團內其他實體的所有權？事實並非如此。我們不排除任何選擇，不只是堅持20%的所有權。

And in addition to that, the KDDI or non-Toyota group companies and about the shareholding of those companies, it's very difficult for us to share with us -- with you the cases involving specific companies. But as we have been mentioning over the years, as we transform ourselves into a mobility company, we need to replace the assets with the living and assets, and those relationships is included in that living assets. So to make sure that those assets are actually be conducive to growth and we would like to make sure that we use those assets in that manner. Thank you.

除此之外，KDDI或非豐田集團公司以及這些公司的持股情況，我們很難與我們-與您分享涉及特定公司的案例。但正如我們多年來一直提到的，當我們轉型為旅遊公司時，我們需要用生活和資產來代替資產，而這些關係也包含在生活資產中。因此，為了確保這些資產實際上有利於成長，我們希望確保我們以這種方式使用這些資產。謝謝。

Thank you. Let's come back to the venue from the floor. The person who's wearing a gray sweater.

謝謝。讓我們從會場回到會場。那個穿著灰色毛衣的人。

I'm [Ikeda] from [San-K Daily]. My question may overlap with previous questions but about strengthening your foundation as well as the Chinese business, about your efforts to strengthen the foundation.

我是[San-K Daily]的[池田]。我的問題可能與之前的問題重疊，但都是關於加強你們的基礎以及中國業務，關於你們為加強基礎所做的努力。

As Miyazaki-san talked about earlier, you have put in place some concrete measures and efforts. You also increased investment and expenses for that. So settle us at the beginning of the year, talked about intentional strengthening of the foundation. So is this something that you would expect to be completed before the end of the year?

正如宮崎先生剛才所說，您已經採取了一些具體措施和努力。你們也為此增加了投資和開支。所以年初的時候我們就安頓下來，談到了刻意強化基礎。那麼您預計這會在年底前完成嗎？

I am sure some activities will continue on. But is this the last year when you invest something like JPY100 billion for that effort? Because in the first half of the year, you have seen some progress. Before the end of the year, you probably will have completed a major part of strengthening efforts for your foundation. Is that the correct understanding?

我確信一些活動將會持續下去。但這是您為此投資 1000 億日圓的最後一年嗎？因為上半年你看到了一些進步。在今年年底之前，您可能會完成基礎強化工作的主要部分。這是正確的理解嗎？

And about your Chinese business, well, competitive domestic manufacturers you mentioned then you are par with them in terms of profitability. Now as a trend in terms of the profitability, is it true that you have sort of hit the bottom because the hybrid cars are sold quite briskly in China? And you will also add the battery electric vehicles, what will be the mainstay of your profitability in your Chinese market? I would like to learn that including your outlook for that particular market. Thank you.

至於你的中國業務，你提到的有競爭力的國內製造商，那麼你在盈利能力方面與他們不相上下。現在從獲利能力的一個趨勢來看，你們是不是已經觸底了，因為混合動力車在中國賣得比較旺？另外，你們還會增加純電動車，你們在中國市場的獲利支柱是什麼？我想了解這一點，包括您對該特定市場的前景。謝謝。

Thank you very much for your questions. Now as for the efforts to strengthen our foundations, will we also expect to increase the expenses for that? Well, actually, I must say, first of all, Kaizen is endless. Kaizen efforts will continue. But of course, the intensity will change over time.

非常感謝您的提問。現在說到夯實基礎，是不是也要增加開支呢？嗯，實際上，我必須說，首先，改善是無止境的。 Kaizen 的努力將持續下去。但當然，強度會隨著時間而改變。

For example, if we spent some money, are we done? The question is that -- the answer is no. Of course, when our Gemba people were thinking about may actually reduce lead times or achieve some Kaizen with certain level of investment. It's something that we expect out of our spending.

例如，如果我們花了一些錢，我們就完成了嗎？問題是──答案是否定的。當然，當我們的現場人員考慮實際上可能會減少交貨時間或透過一定程度的投資實現一些改善。這是我們對支出的期望。

Actually, the other day, when we -- I visited a Gemba, they were using a very heavy machine tool to do their work. Well, we may modernize that to replace that with modern, lighter, same functionality tools. But they could not buy that because of the lack of investment. But then if you replace that, that work can be done with a shorter time, and now that work can be done by female workers instead of muscular male workers.

事實上，有一天，當我們——我參觀了現場，他們正在使用一台非常重型的工具機來完成他們的工作。好吧，我們可以對其進行現代化改造，用現代的、更輕的、相同功​​能的工具來取代它。但由於缺乏投資，他們無法購買。但如果你替換它，這項工作可以在更短的時間內完成，現在這項工作可以由女性工人而不是肌肉發達的男性工人來完成。

So whatever the ideas that come out of the Gemba may worthwhile making investment because we can expect concrete outcomes. So that's what we expect to see continuously. I hope you will keep your eyes on our efforts as well.

因此，無論現場產生什麼想法都可能值得投資，因為我們可以期待具體的結果。這就是我們期望不斷看到的情況。希望您也能關注我們的努力。

If I may supplement, we would like to build a workplace where people long for working want to work. Well, understanding that, we now work on improving the working environment. And we continue investing in human resources so that we can build this environment where people feel that they would really like to be a part of.

請容許我補充一下，我們希望建立一個讓渴望工作的人願意工作的工作場所。嗯，了解了這一點，我們現在正在努力改善工作環境。我們繼續投資人力資源，以便我們能夠建立一個人們真正願意參與其中的環境。

And Yamamoto-san mentioned earlier, Kaizen is endless. But of course, there are priorities, and we are starting with high priority areas, and certain activities will continue next year as well. Otherwise, we won't be able to build that perfect workplace.

山本先生之前提到，改善是永無止境的。但當然，有優先事項，我們將從高優先領域開始，某些活動明年也將繼續。否則，我們將無法建立完美的工作場所。

Something that we cannot be too sure about is, well, depending on the demand in China, there could be some more intensified price competition when the supply is demand. But we have to be careful not to be engulfed in the price competition. That's something that we really want to be conscious about when we were in China. But after all, we also would like to be a brand that is chosen by Chinese consumers, and that will be our ultimate goal.

我們不能太確定的是，根據中國的需求，當供應是需求時，價格競爭可能會更加激烈。但我們必須小心，不要陷入價格競爭。這是我們在中國時真正想要意識到的事情。但畢竟我們也希望成為中國消費者選擇的品牌，這將是我們的最終目標。

Now as for the strengthening of your foundation, as I listen to your responses, do you think these special efforts will be reduced to ordinary day to day Kaizen activities?

現在，關於加強你的基礎，當我聽了你的回應時，你認為這些特殊的努力會減少到普通的日常改善活動嗎？

Well, if it happens sooner, that would be better, I think. Because after all, as we look back, we really did not have a full grasp of the Gemba. And every time we visit Gemba, there are new learnings. So this effort of strengthening the foundation I hope will eventually become ordinary Kaizen activities with enhanced communication with Gemba on our part. Thank you.

好吧，我想，如果早點發生的話，那就更好了。因為畢竟回過頭來看，我們確實沒有完全掌握現場。每次我們參觀現場，都會有新的收穫。因此，我希望這種加強基礎的努力最終能夠成為普通的 Kaizen 活動，並加強與現場的溝通。謝謝。

Many people have their hands up but the time to conclude this session is approaching. So the next one will be the final last question. The second row from the front, please.

許多人都舉起了手，但本次會議的結束時間已經臨近。所以下一個將是最後一個問題。請坐前排第二排。

Thank you very much. (inaudible) Economic Journal, [Katsumata] is my name. I also have two questions that I would like to ask. And I may be asking the question that was already asked, but my question relates to the investment in human resources. And you mentioned that you will be increasing the spending including those in suppliers. But for covering the entire supply chain, those initiatives will become truly meaningful. So to what extent has this efforts permeated through those supply chain overall? What are the remaining challenges?

非常感謝。 （聽不清楚）《經濟雜誌》，[Katsumata] 是我的名字。我也有兩個問題想請教一下。我可能會問已經被問過的問題，但我的問題涉及人力資源投資。您提到您將增加支出，包括供應商的支出。但對於涵蓋整個供應鏈來說，這些措施將變得真正有意義。那麼，這種努力又在多大程度上滲透到整個供應鏈中呢？剩下的挑戰是什麼？

And the second question relates to the domestic production. Earlier, relating to the second half, you mentioned that you are going to restore or recover the production volume. And the figure for the second half is 1.74 million, which is a significantly high number. Earlier, you talked about a work site foundation strengthening through which you identified many issues you weren't aware of in the past. But probably, you may have been faced with labor shortage or finding difficulty hiring good people, how are you finding that situational role?

第二個問題涉及國內生產。在此之前，關於下半年，您提到要恢復或恢復產量。下半年這個數字是174萬，這是一個相當高的數字。早些時候，您談到了工地基礎加固，透過該加固您發現了許多您過去沒有意識到的問題。但也許，您可能面臨勞動力短缺或難以招募優秀人才，您如何找到這種情境角色？

Allow me to respond to the first question. Already we have explained publicly many opportunities, but right now, throughout Japan, the situation remains quite difficult. The material price increase, the energy price increased, and labor cost increased. So including that, if Toyota is the only company surviving, the automotive industry will lose its sight. And therefore, we would like to make sure that the conditions will remain strong for the entire industry.

請容許我回答第一個問題。我們已經公開解釋了很多機會，但目前整個日本的情況仍然相當困難。材料價格上漲，能源價格上漲，勞動成本增加。因此，如果豐田是唯一倖存的公司，汽車產業將失去光明。因此，我們希望確保整個行業的條件保持強勁。

With those suppliers with which we have direct business relationship, we are trying to identify what are the challenges they are faced with. What are the pain points? We are carrying out those communications on one by one, face to face. Aligned with the situation of each supplier, we are providing support to them. But at the same time, automotive industry has a very broad supplying industry, and therefore, Toyota alone working hard cannot lead the entire industry.

對於那些與我們有直接業務關係的供應商，我們正在努力確定他們面臨的挑戰是什麼。有哪些痛點？我們正在一對一、面對面地進行這些溝通。我們根據每個供應商的情況，為他們提供支援。但同時，汽車產業的供給產業非常廣闊，光是豐田的努力是無法引領整個產業的。

And therefore, with the Japan Automobile Manufacturer Association and also Japan sales manufacturer working with us to the Tier 1 companies and also from Tier 1 to Tier 2 with the cooperation of Japan automobile parts manufacturers, we are carrying out activities that could result in the happiness of all 5.5 million people engaged in the automotive industry. The issue here is that those initiatives and activities must be continued indefinitely. So there are various difficulties, but we would like to transform this into the sustainable activities that the entire industry can engage in.

因此，我們與日本汽車工業協會以及日本銷售製造商一起與我們合作，從Tier 1到Tier 2與日本汽車零件製造商合作，我們正在進行可以帶來幸福的活動共有 550 萬人從事汽車行業。這裡的問題是這些措施和活動必須無限期地繼續下去。所以有各種各樣的困難，但我們想把它轉化為整個產業都可以參與的永續活動。

Allow me to respond to the second question. It's not that this is the concrete measures to address the challenges would suffice; that's not the case. Not just Toyota but including suppliers, there are certain issues that the automotive industry as a whole should address the issue to overcome the issue.

請容許我回答第二個問題。但這並不是應對挑戰的具體措施就足夠了；事實並非如此。不僅是豐田，包括供應商在內，整個汽車產業都應該解決某些問題以克服問題。

And for us to be allowed that through automation and also creating the work site where anyone can make their jobs done, we need to reduce the number of people required to be hired. And also, that should also result in suppliers to be able to hire the necessary human resources so that the operation can be maintained for the entire supplying industry and automotive industry.

為了讓我們能夠透過自動化並創建任何人都可以完成工作的工作場所，我們需要減少需要雇用的人數。此外，這也應該使供應商能夠僱用必要的人力資源，以便整個供應產業和汽車產業的運作得以維持。

In the context of a work site foundation strengthening, by having solid communication with the Gemba and looking after those people working on site and helping our suppliers strengthen the foundation, we have been able to enhance the retention level of those workers. And therefore, for the second half, I think we now have the outlook that we will be able to achieve the figure that we set for the second half.

在夯實工地基礎的背景下，透過與現場的密切溝通、對現場工作人員的照顧、幫助供應商夯實基礎，我們已經能夠提高這些工人的保留水準。因此，對於下半年，我認為我們現在的前景是我們將能夠實現我們為下半年設定的數字。

But we should not be complacent at this juncture. We must make sure that we make the environment in a situation where people will find it attractive to work in Toyota and wanting to work of Toyota. And for us to be able to do that, voices from Gemba, the employees and also suppliers, through those, we would like to invest in human resources as well as the growth area in investment that are needed.

但此時此刻我們不該自滿。我們必須確保我們創造的環境能夠讓人們覺得在豐田工作很有吸引力並且願意在豐田工作。為了讓我們能夠做到這一點，來自現場、員工和供應商的聲音，我們希望透過這些聲音投資於人力資源以及所需投資的成長領域。

Thank you very much. Thank you very much for your questions. We would like to conclude with the QA session. The speakers will now leave the podium.

非常感謝。非常感謝您的提問。我們想以 QA 會議作為結束。演講者現在將離開講台。

This concludes today's media briefing on our financial results. Thank you very much once again for being with us today.

今天關於我們財務表現的媒體吹風會到此結束。再次非常感謝您今天與我們同在。

Statements in English on this transcript were spoken by an interpreter present on the call. The interpreter was provided by the company sponsoring this event.

電話會議中的一位口譯員以英語對本筆錄進行了發言。口譯員由贊助本次活動的公司提供。