豐田汽車 (TM) 2022 Q2 法說會逐字稿

[Interpreted] Thank you, everyone, for joining us despite your busy schedules. We would now like to begin Toyota Motor Corporation's FY 2022 Second Quarter Financial Results Press Briefing. Starting by introducing our presenters today, Chief Financial Officer, Kenta Kon; Chief Communication Officer, Jun Nagata.

[翻譯]感謝大家在百忙之中加入我們。我們現在想開始豐田汽車公司 2022 財年第二季度財務業績新聞發布會。首先介紹我們今天的演講者，首席財務官 Kenta Kon；首席通信官，Jun Nagata。

We would now like to begin by having our CFO, Mr. Kon, explain about the financial results.

我們現在想先讓我們的首席財務官 Kon 先生解釋財務結果。

[Interpreted] Hello, everyone. Thank you for joining us today. I am Kenta Kon. We would like to express our heartfelt appreciation to all of our stakeholders, including customers around the world who chose us, as well as our shareholders, dealers and suppliers who support us. We sincerely apologize for the inconvenience caused to our customers due to the recent production volume reduction. We are working to recover production as soon as possible. Thank you for your understanding.

[翻譯]大家好。感謝您今天加入我們。我是康健太。我們衷心感謝所有利益相關者，包括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。對於近期因減產給客戶帶來的不便，我們深表歉意。我們正在努力盡快恢復生產。感謝您的理解。

I would like to provide a summary of the second quarter of this fiscal year. The semiconductor shortage and spread of COVID-19 in some developing countries caused us to reduce our production volume globally. But our suppliers, plants and dealers made great efforts to supply as many cars to our customers as possible. Our results for the first half of the fiscal year reflect our enhanced cost reduction activities and efforts to make more efficient use of fixed costs while enhancing the product appeal by making ever better cars and investing for growth.

我想提供本財年第二季度的摘要。一些發展中國家的半導體短缺和 COVID-19 的蔓延導致我們在全球範圍內減少產量。但是我們的供應商、工廠和經銷商努力為我們的客戶提供盡可能多的汽車。我們本財年上半年的業績反映了我們加強成本削減活動和努力更有效地利用固定成本，同時通過製造更好的汽車和投資增長來增強產品吸引力。

We have also benefited from the tightening supply and high demand in the new car market as this has led to higher used car prices and allowed us to decrease the quantum of incentives. We believe these factors have made our results in certain respects to be robust beyond our underlying strength. Even though we have revised our operating income forecast upwards, excluding the impact of the depreciation of the yen, it would be in substance a downward revision due to increases in raw material costs. We will keep improving our operation to standardize what we have learned from COVID-19.

我們還受益於新車市場的供應趨緊和高需求，因為這導致二手車價格上漲，並使我們能夠減少激勵措施。我們相信這些因素使我們的業績在某些方面超越了我們的潛在實力。儘管我們上調了我們的營業收入預測，但不包括日元貶值的影響，但由於原材料成本的增加，實質上將是下調。我們將不斷改進我們的運營，以標準化我們從 COVID-19 中學到的知識。

In terms of our return to shareholders, the interim ordinary dividend is JPY 120 per share, an increase of JPY 15 compared to the previous fiscal year. We have also decided to conduct a repurchase of up to JPY 100 billion of our common stock.

在我們對股東的回報方面，中期普通股息為每股 120 日元，比上一財年增加了 15 日元。我們還決定回購最多 1,000 億日元的普通股。

Let me discuss our financial results for the first half ended September 2021. Consolidated vehicle sales for the period was at 4,094,000 units, which was 132.7% of consolidated vehicle sales for the first half of the previous fiscal year. Toyota and Lexus brand vehicle sales was at 4,852,000 units, which was 121.0% of such sales for the first half of the previous fiscal year. The ratio of electrified vehicles was 27.7%.

讓我談談我們截至 2021 年 9 月的上半年的財務業績。該期間的綜合汽車銷量為 4,094,000 輛，佔上一財年上半年綜合汽車銷量的 132.7%。豐田和雷克薩斯品牌汽車銷量為 4,852,000 輛，佔上一財年上半年銷量的 121.0%。電動汽車比例為27.7%。

Consolidated financial results for the first half of this fiscal year were sales revenues of JPY 15,481.2 billion, operating income of JPY 1,747.4 billion, income before income taxes of JPY 2,144.0 billion and net income of JPY 1,524.4 billion. I would like to explain the factors which impacted operating income year-on-year.

本財年上半年的合併財務業績為銷售收入154,812億日元、營業收入17,474億日元、所得稅前收入21,440億日元和淨利潤15,244億日元。我想解釋一下影響營業收入同比的因素。

First, the effects of foreign exchange rates increased operating income by JPY 255 billion. Second, cost reduction efforts decreased operating income by JPY 30 billion due to the impact of soaring material prices. Third, marketing efforts increased operating income by JPY 1,055 billion largely due to the increase in sales volume and increased earnings in the financial services business. Finally, a reduction in expenses increased operating income by JPY 10 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 1,035 billion year-on-year.

首先，受匯率影響，營業收入增加了 2550 億日元。其次，由於材料價格飛漲的影響，削減成本的努力使營業收入減少了 300 億日元。第三，營銷活動使營業收入增加了 10,550 億日元，這主要是由於銷售量的增加和金融服務業務的收益增加。最後，費用的減少使營業收入增加了 100 億日元。因此，剔除匯率、掉期估值損益等因素的整體影響，營業收入同比增加10,350億日元。

Next, I will explain operating income for each region. As shown, operating income increased year-on-year in all regions largely due to the increase in sales volume. As for our China business, the operating income of consolidated subsidiaries and our share of profit of investments accounted for using the equity method increased due to the impact of foreign exchange rates.

接下來，我將解釋每個地區的營業收入。如圖所示，各地區營業收入同比增長主要是由於銷量的增加。中國業務方面，受匯率影響，合併子公司的營業收入和權益法核算的投資利潤份額均有所增加。

Regarding financial services. Operating income excluding swap valuation gains and losses for the fiscal year increased year-on-year mainly due to the increase in the lending balance and margins.

關於金融服務。本財年扣除掉期估值損益的營業收入同比增加，主要是由於貸款餘額和利潤率的增加。

Next, I would like to explain our return to shareholders. Based on the business results for the first half of this fiscal year, we decided to pay an interim dividend of JPY 120 per share, an increase of JPY 15 compared to the previous fiscal year. We intend to continue to maintain improved consolidated dividend payout ratio over the mid to long term as well as pay dividends stably and sustainably to reward our shareholders who hold our shares over the mid to long term. In addition, we will repurchase up to JPY 150 billion of our own shares for the current interim period, taking into consideration factors such as investments in growth areas and dividend levels.

接下來，我想解釋一下我們對股東的回報。根據本財年上半年的業績，我們決定派發每股120日元的中期股息，比上一財年增加15日元。我們打算在中長期內繼續保持改善的綜合派息率，並穩定、可持續地派發股息，以回報中長期持有我們股份的股東。此外，考慮到增長領域的投資和股息水平等因素，我們將在本中期期間回購最多 1500 億日元的自有股票。

Next, I will explain the forecasts for the fiscal year ending March 31, 2022. Consolidated vehicle sales is expected to be 8.55 million units, which is 98.3% of the previous forecast. Regional sales breakdown is as stated in the presentation. As for Toyota and Lexus brand vehicle sales, we anticipate that vehicle sales will be 9.4 million units, which is 97.9% of the previous forecast.

接下來，我將解釋對截至 2022 年 3 月 31 日的財政年度的預測。綜合汽車銷量預計為 855 萬輛，是之前預測的 98.3%。區域銷售明細如演示文稿中所述。至於豐田和雷克薩斯品牌汽車銷量，我們預計汽車銷量將達到 940 萬輛，為之前預測的 97.9%。

Next, let me explain the forecasts for the full year consolidated financial performance. We have adopted ForEx rate assumptions for October onwards of JPY 110 per dollar and JPY 125 per euro, which makes the full year assumptions of JPY 110 per dollar and JPY 128 per euro. Based on this, our forecasts for full year consolidated financial performance are: sales revenues of JPY 30 trillion, operating income of JPY 2,800 billion, income before income taxes of JPY 3,440 billion and net income of JPY 2,490 billion.

接下來，讓我解釋一下對全年合併財務業績的預測。我們採用了 10 月起 110 日元/歐元和 125 日元/歐元的外匯匯率假設，這使得全年假設為 110 日元/美元和 128 日元/歐元。基於此，我們對全年合併財務業績的預測為：銷售收入30萬億日元，營業收入28000億日元，所得稅前利潤34400億日元，淨利潤24900億日元。

Next, I would like to explain the factors that impact operating income year-on-year compared to the previous forecast. The operating income forecast has been revised upward by JPY 300 billion from the previous forecast, taking into account the increase in operating income due to the revision of FX assumptions, reflecting the weaker yen and the decrease in operating income due to the increase in raw material costs.

接下來，我想解釋一下與之前的預測相比，影響營業收入同比的因素。營業收入預測比之前的預測上調了 3,000 億日元，考慮到由於修正外匯假設導致營業收入增加，反映了日元貶值以及由於原材料增加導致營業收入減少費用。

The factors that will impact operating income compared to the same period of previous fiscal year are as shown in the presentation. Although we continue to face unpredictable conditions with regard to the stabilization of supply as well as issues such as the sharp rise in raw material costs, we will continue to work towards the future and establish the lessons learned from the COVID-19 crisis.

與上一財年同期相比，影響營業收入的因素如簡報所示。儘管我們在供應穩定方面繼續面臨不可預測的情況以及原材料成本急劇上升等問題，但我們將繼續朝著未來努力，並從 COVID-19 危機中吸取教訓。

Thank you for your attention.

感謝您的關注。

[Interpreted] (Operator Instructions) Mr. Katori from Yomiuri Newspapers, please. (Operator Instructions)

[解釋]（操作員說明）請讀賣新聞的香取先生。 （操作員說明）

[Interpreted] This is Katori speaking from Yomiuri Newspapers. I have 2 questions. First, for this ended first half performance, I would like to hear your assessment and summary. Especially the operating income, maybe there has been some changes, but I do think that it's a record high from the past history. So for the factors that contributed to that and also for the large vehicle side performing very well, the sales was very well from new car sales, I'd like to hear about the factors that contributed.

[翻譯] 這是來自讀賣新聞的香取。我有 2 個問題。首先，對於本次上半年結束的表現，我想听聽大家的評價和總結。尤其是營業收入，也許有一些變化，但我確實認為這是歷史上的歷史新高。因此，對於促成這一點的因素以及大型車輛方面的表現非常好，新車銷售的銷量非常好，我想听聽促成因素。

And especially, I'd like to ask about the production recovery plan. I think you've made a report about what your plans up to November. But up to December, are you -- I think we hear that you will be operating on the weekend as well, including Saturdays, but still, there is some impact from COVID. So what kind of recovery plan do you have? That's my second question.

特別是，我想問一下生產恢復計劃。我想你已經報告了你到 11 月的計劃。但是直到 12 月，您是嗎？我想我們聽說您也將在周末（包括週六）進行工作，但是 COVID 仍然會產生一些影響。那麼你有什麼樣的康復計劃呢？這是我的第二個問題。

[Interpreted] Thank you, Mr. Katori, for your questions. So your first question was about the assessment of the ended first half of this term about what were the contributing factors.

[翻譯] 謝謝香取先生的提問。所以你的第一個問題是關於本學期結束的前半部分的評估，關於什麼是促成因素。

And your second question was about the production recovery plan after December. That is how I understood your 2 questions. Am I correct?

第二個問題是關於12月以後的生產恢復計劃。這就是我理解你的兩個問題的方式。我對麼？

[Interpreted] Yes.

[解釋] 是的。

[Interpreted] So both of those questions will be responded from our CFO, Mr. Kon.

[解釋] 因此，我們的首席財務官 Kon 先生將回答這兩個問題。

[Interpreted] Thank you very much for your question. Regarding the first half second quarter results, the assessments, if we can look at the third page of the presentation material, thank you. This is the summary. And I'd like to make some additional comments on this -- in addition to this page.

[翻譯] 非常感謝您的提問。關於上半年第二季度的業績，評估，如果我們可以看演示材料的第三頁，謝謝。這是總結。除了本頁之外，我還想就此發表一些額外的評論。

So as you can see on the very top, globally, production volume has declined globally. That is how we see the first half of this fiscal year. But in this situation, our dealers, our suppliers, our plants, the plants worldwide, so the gemba or the operations side, they have made great efforts to supply as much cars as possible to the customers without stopping the vehicle plant. If a vehicle plant stops, there will be a huge impact to our suppliers and stakeholders. Therefore, the people working at the operations side wanted to avoid that situation and made strong efforts. And that has contributed largely to our results. But on the other hand, we are, in fact, having customers wait for the car delivery. So there are many challenges still that we have to work on.

因此，正如您在全球最頂端看到的那樣，全球產量已經下降。這就是我們對本財年上半年的看法。但在這種情況下，我們的經銷商、我們的供應商、我們的工廠、世界各地的工廠，無論是現場還是運營方面，他們都付出了巨大的努力，在不停止整車廠的情況下盡可能多地向客戶供應汽車。如果汽車廠停產，將對我們的供應商和利益相關者產生巨大影響。因此，運營方的工作人員希望避免這種情況，並做出了很大的努力。這在很大程度上促成了我們的結果。但另一方面，我們實際上是讓客戶等待汽車交付。因此，我們仍然面臨許多挑戰。

And also for the sales results, even though there was limitations in production, the sales side did not drop so significantly. Compared year-on-year, actually, there was an increase. And this is because the dealers, they have worked -- made efforts to drop their level of inventory, also made efficient sales activities, also been able to work flexibly with the existing inventories. So they have been working hard to capture the sales opportunities, have good communication with the customers to deliver the cars as much as possible. This was also a huge contributor to the results.

而對於銷售業績來說，儘管生產受到限制，但銷售方面並沒有出現如此明顯的下降。與去年同期相比，實際上是有增加的。這是因為經銷商，他們一直在努力降低庫存水平，還進行了高效的銷售活動，還能夠靈活地處理現有庫存。因此，他們一直在努力捕捉銷售機會，與客戶進行良好的溝通，以盡可能地交付汽車。這也是對結果的巨大貢獻。

And on the other hand, there were some areas that went beyond our underlying strength. And it might be just partially, but the new car sales is tight in supply, and therefore, used car prices have -- are now at a high level. And as a result, the financial businesses, the residual value balance has turned positively. And this is mainly contributed by the high used car price market.

另一方面，有些領域超出了我們的潛在實力。這可能只是部分原因，但新車銷售供應緊張，因此二手車價格 - 現在處於高位。其結果是，金融業務的殘值餘額已轉正。而這主要得益於高昂的二手車市場價格。

And regarding incentives, under the current situation, for all of the OEMs, it's the same situation, but we have been able to keep the incentives low. So these kinds of environmental aspects have contributed. This will be beyond our underlying strength. However, for the market fluctuation, the higher commodity price market -- higher commodity prices is also a large impacting factor. We are not in a situation where we can hand on these price increases to our customers. Therefore, cost reduction, fixed cost reduction, also making efforts to enhance the vehicle value, these were the efforts made to recover the negative impact from the market fluctuation.

關於激勵，在目前的情況下，對於所有 OEM 來說，情況都是一樣的，但我們能夠將激勵保持在較低水平。因此，這些環境因素起到了作用。這將超出我們的潛在實力。但是，對於市場波動來說，商品價格走高的市場——商品價格走高也是一個很大的影響因素。我們無法將這些價格上漲交給我們的客戶。因此，降低成本，降低固定成本，同時努力提升車輛價值，這些都是為了彌補市場波動帶來的負面影響而做出的努力。

For the cost reduction and fixed cost reduction, there has been huge efforts made company-wide, and this effort is continuing. Going through COVID, we have -- don't have a feel at the point of this time that we are returning back to the before COVID times. So that will be a positive feeling that I have.

在降低成本和降低固定成本方面，全公司上下都做出了巨大的努力，而且這種努力還在繼續。在經歷了 COVID 之後，我們現在沒有感覺到我們正在回到之前的 COVID 時代。所以這將是一種積極的感覺，我有。

I'm sorry to be lengthy -- giving you a lengthy answer, but one of the reasons why we did not drop -- see a big drop in the sales activities is because the product appeal being enhanced as a foundation of our business, I think that is a large contributor, having a stronger product appeal. TNGA was led -- or started from the initiation -- from the President Toyoda's statements. And those initiatives were taken, product appeal strength and also to set the products in a group or series and families and to achieve ever better cars. And this kind of activity had contributed in this result, I believe.

很抱歉冗長 - 給你一個冗長的答案，但我們沒有下降的原因之一 - 看到銷售活動大幅下降是因為產品吸引力作為我們業務的基礎得到增強，我認為這是一個很大的貢獻者，具有更強的產品吸引力。 TNGA 是從豐田總裁的聲明中領導的——或從發起開始的。並採取了這些舉措，增強了產品吸引力，並將產品設置為組或系列和家庭，並實現更好的汽車。我相信，這種活動促成了這一結果。

And for your second question about the production recovery, after December, we do still see much risks there. However, for the production volume, the 9 million that we have announced today for December and January, February, March, if we operate in a full operation, we still see some risk in order to be able to operate fully. Therefore, it is slightly conservative, this 9 million in volume. But based on our running production situation, including the Saturday operations, since we have customers waiting, as a fact, we will do whatever we can to continue the production.

關於第二個關於生產恢復的問題，12 月之後，我們確實看到了很多風險。但是，對於生產量，我們今天宣布的12月和1月、2月、3月的900萬輛，如果我們全面運營，我們仍然會看到一些風險，以便能夠全面運營。所以，這900萬的量，還是稍微保守一點。但根據我們的生產情況，包括週六的營業，由於我們有客戶在等待，事實上，我們會盡我們所能繼續生產。

So this will be my answers. I hope I have answered your question.

所以這將是我的答案。我希望我已經回答了你的問題。

[Interpreted] Thank you, Mr. Katori, for your question. We would like to move to the next question. Mr. Kondo from Asahi Newspapers, please. (Operator Instructions)

[翻譯] 謝謝香取先生的提問。我們想轉到下一個問題。請朝日新聞社的近藤先生。 （操作員說明）

[Interpreted] My name is Kondo from Asahi Newspapers. Can you hear my voice? Can you hear my voice? Okay.

[解釋] 我叫朝日報紙的近藤。你能聽到我的聲音？你能聽到我的聲音？好的。

[Interpreted] Yes, we can.

[解釋] 是的，我們可以。

[Interpreted] So based upon your financial results, I have a question starting with the sales and operating income and net income. I think it is victory, historical high, and you made a revision, upward revision for the full year. Yes, yen depreciation was one factor, but I see wonderful numbers. And still, the society as a whole is suffering from COVID-19. And also the auto industry, especially the small suppliers, have to deal with carbon neutrality and also face the challenge of CASE and other new technologies. In other words, they are still struggling to turn around their profit. And I understand your number is based upon those suppliers' numbers. How do you accept this? And what do you think about returning those profit and also [divisions]?

[解釋]所以根據您的財務結果，我有一個問題，從銷售和營業收入以及淨收入開始。我認為這是勝利，歷史最高點，你做了一個修正，全年向上修正。是的，日元貶值是一個因素，但我看到了很棒的數字。儘管如此，整個社會仍在遭受 COVID-19 的折磨。此外，汽車行業，尤其是小型供應商，不僅要應對碳中和，還要面臨 CASE 等新技術的挑戰。換句話說，他們仍在努力扭虧為盈。我知道您的電話號碼是基於這些供應商的電話號碼。你怎麼接受這個？您如何看待返還這些利潤以及[部門]？

And also your relationship with suppliers, especially with Nippon Steel, the champion negotiation so-called is the negotiation on the steel price every half a year. And at Nippon Steel, R&D investments and development costs are being the reasons for the negotiation. So what is your measure? And how are you going to deal with this? And what's your thoughts on this? And especially this litigation on this patent and -- you are expected to make a scientific proof on this. And how are you going -- what is your position on this litigation?

還有你和供應商的關係，特別是和新日鐵的關係，所謂的冠軍談判，就是每半年談一次鋼價。在新日鐵，研發投資和開發成本是談判的原因。那麼你的衡量標準是什麼？你將如何處理這個問題？您對此有何看法？尤其是關於這項專利的訴訟 - 你應該對此做出科學證明。你最近怎麼樣？你在這場訴訟中的立場是什麼？

[Interpreted] Mr. Kondo, thank you so much for your question. The first question was about our good performance on this interim financial result. Well, number-wise, and your question was that our numbers were based upon suppliers' numbers and what is our take on this, well, Mr. Kon is going to answer on this.

[翻譯] 近藤先生，非常感謝您的提問。第一個問題是關於我們在中期財務業績上的良好表現。好吧，從數字上講，您的問題是我們的數字是基於供應商的數字，我們對此有何看法，好吧，Kon 先生將對此作出回答。

And with regard to the relation with Nippon Steel, and the first question was on the price negotiation, Nippon Steel is asking for a further price hike and what is our opinion on this. And the second is about this electromagnetic steel, what we think about this. And Nagata, myself, will answer this question later.

而關於與新日鐵的關係，第一個問題是關於價格談判的問題，新日鐵要求進一步提價，我們對此有何看法。第二個是關於這種電磁鋼，我們對此的看法。 Nagata本人稍後會回答這個問題。

[Interpreted] Yes. Regarding the first question, I would like to answer, first of all, with regard to relations with suppliers, well, we would like to coexist with our suppliers so that we can reduce cost and enhance the competitiveness together. We would like to enhance competitiveness of suppliers, and we would like to reap the achievements fairly together. And this would also include our customers. We have not changed this philosophy all along.

[解釋] 是的。關於第一個問題，我想先回答一下，首先，關於與供應商的關係，嗯，我們想和我們的供應商共存，共同降低成本，提高競爭力。我們希望提高供應商的競爭力，我們希望共同收穫公平的成果。這也包括我們的客戶。我們一直沒有改變這一理念。

For example, yes, we do receive comments, like the one we just received, from time to time. And as I've been involved in the conversation and dialogue with suppliers, for example, we made announcements of reducing our production volume a couple of times, and orders in -- from Toyota has a very high certainty. And on top of that, when there is a production volume decrease, we try to let them know as soon as possible also in detail. And especially when there's a decline in the production volume, the parts delivered from suppliers would also decrease. So there is some impact.

例如，是的，我們確實會不時收到評論，就像我們剛剛收到的評論一樣。例如，當我參與與供應商的對話和對話時，我們宣布了幾次減少產量的公告，並且來自豐田的訂單具有很高的確定性。最重要的是，當產量減少時，我們會盡快讓他們知道細節。特別是當產量下降時，供應商交付的零件也會減少。所以有一些影響。

But we also get opinions from suppliers that they don't have much loss from this because we try to reduce the cost by optimizing the quality, and also we try to deal with concerns of suppliers. And there are several thousands of proposals from suppliers. When I went to visit one of the supplier the other day, when I heard from them, including many stories they share with us, for example, recently they told us that when Toyota makes some casual comments, for example, these components need to be visible, if we make such a whisper or if we mumble that, then the supplier would use ink that would never disappear to clarify the location of that part, and that could be expensive. So when our engineer goes to the site to see that ink, the engineer would say, "No, no, you don't have to use this expensive ink, but you can use a marker instead." In such ways, we are trying to enhance the competitiveness together. And as a result, suppliers would have less concerns.

但我們也從供應商那裡得到意見，他們沒有因此受到太大損失，因為我們試圖通過優化質量來降低成本，同時我們也試圖解決供應商的擔憂。並且有來自供應商的數千個提案。前幾天我去拜訪一個供應商的時候，當我聽到他們的消息，包括他們與我們分享的許多故事，例如最近他們告訴我們，當豐田發表一些隨意的評論時，例如，這些組件需要可見，如果我們發出這樣的耳語或喃喃自語，那麼供應商將使用永遠不會消失的墨水來明確該部分的位置，這可能會很昂貴。所以當我們的工程師去現場看墨水時，工程師會說，“不，不，你不必使用這種昂貴的墨水，但你可以用記號筆代替。”通過這樣的方式，我們正在努力共同提高競爭力。因此，供應商的擔憂就會減少。

Of course, we are still in the middle, so it's never complete. But we think we are trying hard to carry out these kind of activities together, but the fact that we are still receiving such comments from outside like this one, maybe we need to try harder. So if you could deliver such feedback, then we will stop and rethink and try to improve ourselves further. Please continue to give this guidance. This was my answer to the first question.

當然，我們還處於中間，所以它永遠不會完成。但是我們認為我們正在努力一起開展這樣的活動，但事實上我們仍然收到來自外部的這樣的評論，也許我們需要更加努力。因此，如果您可以提供此類反饋，那麼我們將停下來重新思考並嘗試進一步提高自己。請繼續提供此指導。這是我對第一個問題的回答。

[Interpreted] Mr. Kondo, regarding the second question with regards to the relations with Nippon Steel, starting with the price negotiation, as you know and this year, price hike was in the conversation. It is not limited to Nippon Steel, but in the steel industry as a whole, there will be significant investment in carbon-neutral aspect. And we are also struggling with the hike of material cost. And we, honestly, understand their circumstance at Nippon Steel.

[翻譯] 近藤先生，關於第二個問題，關於與新日鐵的關係，從價格談判開始，如您所知，今年，價格上漲是在談話中。不僅限於新日鐵，整個鋼鐵行業都將在碳中和方面進行大量投資。我們也在為材料成本的上漲而苦苦掙扎。老實說，我們了解他們在新日鐵的情況。

And on the other hand, as you may also be aware, we are in the B2C business. In other words, we deliver the complete product, which is car, to customers. In other words, even when there are price hikes, it is difficult for us to transfer those hikes directly into the consumers. That's the nature of our industry. So as was explained, we have to sincerely steadily reduce costs one by one. In other words, with regards to price negotiation, both sides need to explain each other's circumstance and understand each other and then continue to sincerely negotiate how we can set the price.

另一方面，您可能也知道，我們從事 B2C 業務。換句話說，我們向客戶交付完整的產品，即汽車。換句話說，即使有價格上漲，我們也很難將這些上漲直接轉移到消費者身上。這就是我們行業的本質。所以正如前面所解釋的，我們必須真誠地、穩步地逐一降低成本。也就是說，在價格談判中，雙方需要相互說明情況，相互了解，然後繼續真誠地協商如何定價。

And regarding the electromagnetic steel, it is, yes, a litigation right now. But there are 5.5 million people in this industry, and then we pursue to achieve carbon neutrality in the auto industry. Therefore, we have to try making this effort steadily and sincerely. And regarding the litigation, I have to say that because this is a pending case, I have to refrain from making any further comments. That is all from myself.

關於電磁鋼，是的，現在是一場訴訟。但是這個行業有550萬人，然後我們追求汽車行業實現碳中和。因此，我們必須堅定而真誠地努力。關於訴訟，我不得不說，因為這是一個未決的案件，我必須避免發表任何進一步的評論。那都是我自己的。

[Interpreted] Thank you very much, Mr. Kondo. We'd like to move on to the next question. From NHK, [Taruno-san], please. (Operator Instructions)

[翻譯] 非常感謝您，Kondo 先生。我們想繼續下一個問題。來自NHK，[Taruno-san]，請。 （操作員說明）

[Interpreted] Excuse me. Can you hear me now?

[解釋] 對不起。你能聽到我嗎？

[Interpreted] Yes, I can hear you.

[解釋] 是的，我能聽到你的聲音。

[Interpreted] So first of all, regarding the sales volume, you have reviewed the forecast. And can you explain about the factor why we have done the review? And hearing the results, it seems that it is improving, but your explanation was that in substance, it is a downward revision. So you are looking at this at a very -- that it is a tough result forecast. So can you explain also why you're looking it from -- as a tough forecast?

[解釋]所以首先，關於銷量，你已經回顧了預測。您能解釋一下我們進行審查的原因嗎？聽聽結果，似乎在改善，但你的解釋是，實質上是向下修正。所以你在看這個 - 這是一個艱難的結果預測。那麼，您能否解釋一下為什麼要從它的角度來看待它——作為一個艱難的預測？

[Interpreted] I think you have one question. So this, the reason and also how -- the way of concept of this reviewing of the sale and production volume and also for the, in substance, downward revision, why are we having this kind of a tough understanding of the forecast, the reasons is what you've asked.

[解釋] 我想你有一個問題。所以這個，原因以及如何 - 這次審查銷售和生產量的概念方式以及實質上的向下修正，為什麼我們對預測有這種艱難的理解，原因是你問的。

[Interpreted] Yes.

[解釋] 是的。

[Interpreted] So Mr. Kon will respond.

[解釋]所以Kon先生會回應。

[Interpreted] Thank you for your question. Regarding the review of our sales volume, so on this slide on the screen, you can see the initial -- first initial forecast term, it was 8.7 million for the consolidated sales, which has been dropped to 150,000 this time with the most -- latest forecast. And we've had some opportunities to explain this up to this day. But there are some situation where we had to drop our production plan volume from our initial plan due to certain reasons.

[解釋] 謝謝你的提問。關於我們銷量的回顧，所以在屏幕上的這張幻燈片上，你可以看到最初的——第一個最初的預測期，是870萬的綜合銷量，這次降到了15萬，最多——最新預測。直到今天，我們還有一些機會來解釋這一點。但是在某些情況下，由於某些原因，我們不得不從最初的計劃中減少生產計劃量。

And I might be repeating myself, but first of all, there's the -- in Southeast Asia mainly, COVID-19 has had impacts. And therefore, the local production plants had to be shut down, and the parts supply had limitations. And also, there were some impacts from semiconductor issues. Malaysia, Vietnam, there were parts supply shortages that there were some months that had a drop in production because of these impacts. So one -- the review -- a reason of this review will be impact from those factors.

我可能會重複自己，但首先，主要是在東南亞，COVID-19 已經產生了影響。因此，當地的生產工廠不得不關閉，零部件供應受到限制。此外，半導體問題也產生了一些影響。馬來西亞，越南，零件供應短缺，由於這些影響，有幾個月的產量下降。所以一個——審查——這次審查的一個原因將是受到這些因素的影響。

And also about the downward revision that we are interpreting the forecast in a very tough perspective, to explain that, for the first half results, for example, compared with last year and 2 years ago, we do understand that it is a large increase in operating income. And again, repeating myself, this is really because of the strong efforts by the dealers, the suppliers and also the people working in Toyota. There were strong efforts made so that they can deliver the customers the vehicles as much as possible, as early as possible. And all of these efforts has beared -- has been combined to come up with these results.

還有關於向下修正，我們以非常強硬的角度解釋預測，解釋說，例如上半年的結果，與去年和兩年前相比，我們確實理解這是一個很大的增長。營業收入。再說一遍，這真的是因為經銷商、供應商以及在豐田工作的人們的大力努力。為了盡可能早地向客戶交付車輛，他們付出了巨大的努力。所有這些努力都已經承擔了——已經結合起來得出了這些結果。

However, in these results, there are some areas -- there are some reasons or factors that was a contribution from the -- something outside of our own strengths. So we are looking at that neutrally. And for the full year forecast, it is actually, in numbers, an upward revision. But we focus on the areas outside of the ForEx event -- effect, and we focus on those non-ForEx impacts to make improvements in the profit as much as possible. So that is how we explained outside as well. And when we focus on these non-ForEx impacts, we do see multiple challenges that we have to face. So as much as possible, we're going to make efforts to recover and overcome these challenges to improve as much as possible. So that effort will continue.

然而，在這些結果中，有一些領域——有一些原因或因素是我們自身優勢之外的貢獻。所以我們中立地看待這個問題。而對於全年預測，從數字上看，實際上是向上修正。但我們關注外匯事件之外的領域——影響，我們關注那些非外匯影響，以盡可能地提高利潤。所以這也是我們在外面解釋的方式。當我們關注這些非外匯影響時，我們確實看到了我們必鬚麵對的多重挑戰。因此，我們將盡可能地努力恢復並克服這些挑戰以盡可能地改善。因此，這種努力將繼續下去。

That will be my explanation for your question. Did I answer your question?

這將是我對你的問題的解釋。我回答你的問題了嗎？

[Interpreted] Mr. [Taruno], thank you very much.

[解釋] [塔魯諾]先生，非常感謝您。

[Interpreted] Yes, understood.

[解釋] 是的，明白了。

[Interpreted] So from Wall Street Journal, Mr. Sean. (Operator Instructions)

[解釋] 來自華爾街日報的肖恩先生。 （操作員說明）

All right. Can you hear me?

好的。你能聽到我嗎？

[Interpreted] Yes, we can hear you.

[解釋] 是的，我們可以聽到你的聲音。

Great. So I was hoping to get a little more insight into your outlook for the remainder of the year and on next year in terms of when you think sales volumes will fully rebound, basically when the industry will get back to normal, what's your outlook on that, and what are the biggest challenges to achieving that?

偉大的。因此，我希望能更深入地了解您對今年剩餘時間和明年的展望，即您認為銷量何時會全面反彈，基本上是行業何時恢復正常，您對此有何展望，實現這一目標的最大挑戰是什麼？

And then secondly, I'm wondering if you could talk about shortages beyond semiconductor. So we've seen some news recently about shortages with magnesium and other parts. Basically, what are you seeing on the horizon? What are the things that you're looking out for that could possibly affect your recovery?

其次，我想知道您是否可以談論半導體以外的短缺。所以我們最近看到了一些關於鎂和其他部件短缺的消息。基本上，你在地平線上看到了什麼？您正在尋找哪些可能會影響您的康復的事情？

[Interpreted] Thank you very much for your question, Sean. First of all, your question was about the timing of our recovery in the remaining year and also the overall industry's recovery and what are the challenges to achieve that. This is the first question.

[解釋] 非常感謝你的問題，肖恩。首先，您的問題是關於我們在剩餘一年中復甦的時機，以及整個行業的複蘇以及實現這一目標的挑戰是什麼。這是第一個問題。

And the second question is that now semiconductors are in shortage, and it is being focused. But other than semiconductors, is there any concern and any shortage? Then we would like to -- you would like us to make a comment on this. Mr. Kon is going to answer both questions.

而第二個問題是現在半導體緊缺，正在被重點關注。但除了半導體之外，還有什麼顧慮和短缺嗎？然後我們想-- 你希望我們對此發表評論。 Kon 先生將回答這兩個問題。

[Interpreted] Thank you so much for your question. Starting with the first one, in the remaining period of fiscal year, the timing for us to completely recover, it is difficult to make anything certain. Of course, risk is becoming significantly smaller. However, we're not in a stage to say that the risk is zero. I don't think the situation allows us to say that yet.

[翻譯] 非常感謝您的提問。從第一個開始，在財政年度的剩餘期間，我們完全恢復的時間，很難確定。當然，風險正變得越來越小。但是，我們還沒有說風險為零。我認為目前的情況還不允許我們這麼說。

And for semiconductors, well, there are many factors, many things, games -- and the other component, demand has -- the demand has sort of stopped. So the supply-and-demand balance has stabilized. But on the other hand, the semiconductors are different from the type to type, so we have to be very cautious in looking at it. So in December, in January, I cannot say that it will recover to the past. I cannot say that there is no risk in reducing the production. However, in comparison to the past level, even though there are some risk of production decrease, it is going to recover quite a bit. And that is the situation.

對於半導體來說，嗯，有很多因素，很多東西，遊戲——以及其他組成部分，需求——需求已經停止了。因此，供需平衡已經穩定下來。但另一方面，半導體因類型而異，因此我們必須非常謹慎地看待它。所以在十二月，一月，我不能說它會恢復到過去。我不能說減產沒有風險。但是，與過去的水平相比，儘管存在一定的減產風險，但仍將恢復不少。情況就是這樣。

And as for the overall industry, I cannot say anything certain about the industry. But for the challenge, the supply of the components, if it is solved, then the OEM challenges will be solved all of a sudden. And in that sense, the energy and the material costs, we hope that those prices would not be hiked so rapidly, and we have to also secure those materials. And that is the challenge that we are facing at the industry.

至於整個行業，我不能說任何關於這個行業的事情。但是對於零部件供應的挑戰，如果解決了，那麼OEM挑戰一下子就迎刃而解了。從這個意義上說，能源和材料成本，我們希望這些價格不會上漲得如此之快，我們還必須確保這些材料的安全。這就是我們在這個行業面臨的挑戰。

Other than the semiconductor, there is nothing that is critical at the moment. Due to the energy shortage, some magnesium, yes, we are hearing that there are some shortage. However, we do not think that is a critical issue at the moment, and that's not what we hear at the moment.

除了半導體，目前沒有什麼是關鍵的。由於能源短缺，一些鎂，是的，我們聽說有一些短缺。但是，我們認為目前這不是一個關鍵問題，我們目前聽到的也不是這個。

[Interpreted] Thank you, Sean-san, for your question. We'd like to move on to the next question. Shiraki-san from Reuters, please. (Operator Instructions)

[解釋]謝謝你，肖恩桑，你的問題。我們想繼續下一個問題。請路透社的白木先生。 （操作員說明）

[Interpreted] I'm Shiraki from Reuters, and I have 2 questions as well. So in your consolidated sales forecast, the electrified vehicles volume is my question. Also, compared with the initial forecast, there has been a slight decrease. And I might be taking it in a selfish way, but here, is it purely about the sales trend impact? Or is it because of the semiconductor crunch and the material price hike? Because of such a high level of material prices now, does it mean that price pressure is more on the electrified vehicles related to the inventory management issue that you said before? Maybe are you focusing on selling more of the conventional gasoline vehicles? Will that be a background to this revision? Gasoline price hikes is another trend that we're seeing in the market. And so of course, from an environmental perspective, I thought that electrified vehicles will have a higher ratio. But why is it that you dropped the ratio there, too?

[解釋] 我是路透社的 Shiraki，我也有 2 個問題。因此，在您的綜合銷售預測中，電動汽車銷量是我的問題。此外，與最初的預測相比，略有下降。我可能會以一種自私的方式看待它，但在這裡，它純粹是關於銷售趨勢的影響嗎？還是因為半導體緊縮和材料價格上漲？因為現在材料價格這麼高，是不是意味著價格壓力更多是在你之前說的庫存管理問題相關的電動汽車上？也許您正專注於銷售更多的傳統汽油車？這會是這次修訂的背景嗎？汽油價格上漲是我們在市場上看到的另一個趨勢。所以當然，從環保的角度來看，我認為電動汽車的比例會更高。但是，為什麼你也降低了那裡的比率呢？

And next question is about not related to the performance, but in the -- under Mr. Kishida's administration, there is a topic discussed about to review the disclosure from companies and to reduce the frequency from every quarter. And from the press, there are some concerns. But from the PR side or functions inside the company, also for the investments toward -- making future investments towards human resource development and other business plans, some people say that quarterly disclosure will be too much frequent. So Toyota being a global company, what are your thoughts regarding this quarterly disclosure? And in Europe, there are some reviews that are being discussed. But if you have any ideas about what will be an appropriate way to review the quarterly announcement, can you share with us?

下一個問題與業績無關，但在岸田先生的管理下，討論了一個關於審查公司披露並減少每個季度的頻率的話題。媒體也有一些擔憂。但從公關方面或公司內部的職能來看，對於未來對人力資源開發和其他業務計劃的投資，有人說季度披露過於頻繁。那麼豐田作為一家全球性公司，您對本季度披露有何看法？在歐洲，正在討論一些評論。但是，如果您對審核季度公告的適當方式有任何想法，可以與我們分享嗎？

[Interpreted] Thank you, Shiraki-san, for your questions. The first is for the electrified vehicles volume, it has been downward revised from the previous forecast. So the reasons is what you want to hear.

[解釋] 謝謝白木同學的提問。首先是電動汽車銷量，從之前的預測向下修正。所以原因是你想听到的。

And the second question is about the disclosure announcement of the quarterly results. There is a discussion about reviewing this frequency and what does Toyota think about this topic. And so that -- both of it will be responded by Mr. Kon.

第二個問題是關於季度業績的披露公告。有一個關於審查這個頻率的討論，以及豐田對這個話題的看法。所以——這兩個都將由 Kon 先生回應。

[Interpreted] Thank you for your questions. Starting with the electrified vehicle ratio, as you have pointed out, slightly the ratio has dropped. But there is no significant factor to this, such as a global common factor. That is not the case. For electrified vehicles and, for example, China, China is not included in the consolidated sales volume, but hybrid accounts for about 20% last year in China. And this year, it has increased up to around 30% electrified vehicles in China. And therefore, globally, it doesn't mean that we see a reduction in the ratio of electrified vehicles in the global market. So our understanding of this change is that this is not a significant change -- difference.

[翻譯] 謝謝你的提問。正如您所指出的，從電動汽車比率開始，該比率略有下降。但這並沒有重要的因素，例如全球共同因素。事實並非如此。對於電動汽車，例如中國，中國不包括在合併銷量中，但混合動力汽車在中國去年的佔比約為 20%。而今年，中國的電動汽車比例已增加至 30% 左右。因此，在全球範圍內，這並不意味著我們看到全球市場中電動汽車的比例有所下降。所以我們對這種變化的理解是，這不是一個顯著的變化——差異。

[Interpreted] No, it's not about the ratio, but I wanted to hear about the volume -- actual volume. Well, so is that the same reason as well?

[解釋] 不，不是比例，而是我想听聽音量——實際音量。那麼，這也是同樣的原因嗎？

[Interpreted] Yes. For the forecast, we first see that -- a drop of 150,000 from -- revised downward from our initial forecast. And it's not that we intentionally drop only the electrified vehicles, honestly speaking. So it's just that looking at when we revise the most -- latest sales volume forecast, we have revised also in same ratio as in the same way the electrified vehicles. So this is not something that is just focused on electrified vehicles changes. And is it okay? Did I answer correctly? Was there any -- did I make any misleading comments?

[解釋] 是的。對於預測，我們首先看到從我們最初的預測下調了 150,000 人。老實說，我們並不是故意只放棄電動汽車。所以只是看看我們何時修改最多 - 最新的銷量預測，我們也以與電動汽車相同的方式進行了修改。因此，這不僅僅是關注電動汽車的變化。還好嗎？我答對了嗎？有沒有——我有沒有發表任何誤導性的評論？

[Interpreted] No, I'm fine. I understand now.

[解釋] 不，我很好。我現在知道了。

[Interpreted] Thank you. So for your second question about the quarterly performance announcement, for right now, I do not fully -- I'm not fully aware of what kind of discussions in detail is happening. But when I talk to investors and stakeholders, it needs to be something that will be beneficial for the stakeholders and investors. That is the way I look at the quarterly results announcement. A company, as a going concern always, well, rather than every 3 months, we are thinking about 10 years in the future, 20 years in the future as we operate our business. I think that's a common way that a company operates.

[解釋] 謝謝。所以關於你關於季度業績公告的第二個問題，目前，我不完全 - 我不完全了解正在發生什麼樣的詳細討論。但是當我與投資者和利益相關者交談時，它需要對利益相關者和投資者有利。這就是我看待季度業績公告的方式。一家公司，作為一個持續經營的企業，不是每三個月一次，而是在我們經營業務時考慮未來 10 年、20 年。我認為這是公司運營的普遍方式。

And in the meantime, of course, we will have to -- it's very important to make the most appropriate and timely announcements and reports. And for key matters, for very important matters, we don't have -- we should not wait 3 months and we should make those kinds of reports and announcements of key matters in a timely way and appropriate time. But if the quarterly results should be announced, we have to think about -- it will -- may cause that the ups and downs as seen in every quarter may be in sync with the ups and downs of the company value. So if it is understood in that way, probably it will not be so positive to make a quarterly report.

與此同時，當然，我們必須——發布最適當和及時的公告和報告非常重要。而對於關鍵事項，對於非常重要的事項，我們沒有--我們不應該等待3個月，我們應該及時和適當的時間做出這些關鍵事項的報告和公告。但如果要公佈季度業績，我們必須考慮——它會——可能導致每個季度的漲跌與公司價值的漲跌同步。所以如果這樣理解的話，做一季報恐怕就不會那麼積極了。

Therefore, together with those financial disclosures, we think that it's important to have media like Toyota Times, our own media like Toyota Times to be able to disclose the way of thinking of Toyota, the philosophy of Toyota, what's happening in Toyota. We think we are trying to use the most of these own media to explain about what is happening within Toyota, and I think this is quite important for us. So that will be my answer to your question.

因此，連同這些財務披露，我們認為重要的是要有像豐田時報這樣的媒體，像豐田時報這樣的我們自己的媒體能夠披露豐田的思維方式、豐田的理念以及豐田正在發生的事情。我們認為我們正試圖利用這些媒體中的大部分來解釋豐田內部正在發生的事情，我認為這對我們來說非常重要。所以這將是我對你問題的回答。

[Interpreted] Thank you, Ms. Shiraki. We'd like to take the next question. From Nikkan Kogyo Shimbun, Ms. [Masatoshi], please. (Operator Instructions)

[解釋] 謝謝白木女士。我們想回答下一個問題。日刊工業新聞，請[Masatoshi]女士。 （操作員說明）

[Interpreted] This is [Masatoshi] from Nikkan Kogyo. Can you hear me? Regarding the first half results, so minus JPY 30 billion for the cost reduction efforts, and I think this was impacted by the material cost increase. So together with the cost reduction benefit, can you give me the breakdown? And also concerned with the period from January to September, the raw material price, did you change your opinion and position on this? And that's the first question.

[解釋] 這是日刊工業的[Masatoshi]。你能聽到我嗎？關於上半年的結果，減去300億日元用於降低成本的努力，我認為這是受到材料成本增加的影響。那麼連同降低成本的好處，你能告訴我明細嗎？還關心1-9月的原材料價格，您對此有沒有改變看法和立場？這是第一個問題。

And second question is that this situation -- under this situation, what kind of extra room do you have to gain back those benefits? And what are the measures that you're going to take?

第二個問題是這種情況——在這種情況下，你需要什麼樣的額外空間才能收回這些好處？您將採取哪些措施？

[Interpreted] Thank you very much for your question, Ms. [Masatoshi]. The first question was about the impact of the cost reduction and the breakdown of that. And also your question was about the hike of the material price.

[翻譯] 非常感謝您的提問，[Masatoshi] 女士。第一個問題是關於成本降低的影響及其細分。還有你的問題是關於材料價格的上漲。

And the second question was about whether or not there is any more opportunity to recover the profit. Mr. Kon is going to answer this.

第二個問題是關於是否還有機會收回利潤。孔先生將回答這個問題。

[Interpreted] Thank you so much for your question. In the first half, so minus JPY 30 billion breakdown, so the so-called pure cost reduction excluding the market is about JPY 300 billion per year being the target for us, and because this is half year, which will be JPY 150 billion. And we were a little short of this target as a result of the pure cost reduction. Conversely speaking, the other than that was the market fluctuation, a little less than JPY 100 billion. We were short of this target, unfortunately. This is the cost reduction benefit, and the remainder is the market.

[翻譯] 非常感謝您的提問。上半年，所以減去300億日元的細分，所以所謂的不包括市場的純成本降低每年大約是3000億日元是我們的目標，因為這是半年，這將是1500億日元。由於純粹的成本降低，我們離這個目標有點遠。反過來說，其他的就是市場波動，略低於1000億日元。不幸的是，我們沒有達到這個目標。這是降低成本的好處，剩下的就是市場。

In the second half -- one moment, please. In the second half, compared with the first half, the impact is going to be larger a little bit. On year-on-year basis, the cost reduction will be minus JPY 345 billion, on Page 18, that is, 18. The annual cost reduction is JPY 300 billion, and we are also a little short of this target. In other words and conversely speaking, remainder is the market fluctuation, but a little more than JPY 200 billion is the cost reduction, and the remainder is the market impact. In other words, net-net, the second half is going to be -- suffer a little tougher than the first half.

下半場——請稍等。下半年，相比上半年，影響會大一些。與去年同期相比，成本削減將是-3450億日元，在第18頁，即18。每年的成本削減是3000億日元，我們也離這個目標有點少。換句話說，反過來說，剩下的就是市場波動，但2000億日元多一點是成本降低，剩下的就是市場影響。換句話說，net-net，下半場將比上半場更艱難一些。

And our measures to strengthen our profitability, well, on this point, as much as possible, the FX fluctuation should be eliminated as much as possible. In other words, we would like to turn this number more positively by excluding those FX impacts. That is the numerical aspect, but there is no major measure which can turn around the number by JPY 100 million all of the sudden. It's in the unit of several thousand or several tens of thousands, the accumulation of small benefits. And we will continue with those series of more methods, and also value chain, including the supplies and used cars and connected car business software, we would like to further improve the profitability of those areas. And by doing so, we would like to improve our profitability higher, more than JPY 2,800 billion.

而我們加強盈利能力的措施，嗯，在這一點上，應該盡可能地消除外匯波動。換句話說，我們希望通過排除這些外匯影響來更積極地改變這個數字。那是數字方面，但沒有什麼大的措施可以讓這個數字一下子翻1億日元。它以幾千或幾萬為單位，積累小利益。我們將繼續採用這一系列更多的方法，以及價值鏈，包括供應和二手車以及聯網汽車業務軟件，我們希望進一步提高這些領域的盈利能力。通過這樣做，我們希望將盈利能力提高到 28,000 億日元以上。

[Interpreted] Thank you so much, [Masatoshi-san]. It is now the scheduled time. However, we'd like to take a last question. From Toyo Keizai, Kigawa-san please. (Operator Instructions)

[解釋] 非常感謝你，[Masatoshi-san]。現在是預定的時間。但是，我們想回答最後一個問題。請來自東洋經濟，木川先生。 （操作員說明）

[Interpreted] Can you hear me?

[解釋] 你能聽到我說話嗎？

[Interpreted] I think your microphone...

[解釋] 我認為你的麥克風...

[Interpreted] Can you hear me?

[解釋] 你能聽到我說話嗎？

[Interpreted] Yes, we can hear you now.

[解釋] 是的，我們現在可以聽到你的聲音了。

[Interpreted] I have a question about the -- your future plan about how you promote electrification. 2030, 200-gigawatt plant operation capacity is what you explained to secure, and bZ4X was what we have announced. And in 2025, you're going to have a North American plant established and make an investment by Toyota alone. And in the meantime, what happens in the world is electrification momentum, strong gains -- becoming stronger. And also, you'll need a lot of investment. You need to have efficiency in your investment. But once again, how are you going to be taking initiatives toward electrification promotion?

[解釋]我有一個關於你未來計劃如何促進電氣化的問題。 2030 年，200 吉瓦的工廠運營能力是您解釋要確保的，而 bZ4X 是我們宣布的。到 2025 年，你將建立一家北美工廠，並由豐田單獨投資。與此同時，世界上發生的事情是電氣化勢頭，強勁的收益——變得更強。而且，您將需要大量投資。您需要提高投資效率。但再一次，您將如何採取措施推動電氣化？

[Interpreted] Thank you, Mr. Kigawa, for your question. This question myself, Nagata, would respond to.

[解釋] 謝謝木川先生的提問。這個問題我自己，永田，會回答的。

Regarding electrification, we receive a lot of questions, and we have repeatedly responded that basically, it is about how we are going to reduce CO2 as quickly as possible starting now. And what Toyota has been saying is that regarding electrification, we are going to become a department store of electrified vehicles, which, in other words, means that we're going to have a full lineup of electrified vehicles so that we can deliver it to various regions and markets, customers all around the world, and have our customers choose what they want to use. That's what we have been saying is our approach.

關於電氣化，我們收到了很多問題，我們已經多次回答，基本上是關於我們從現在開始如何盡快減少二氧化碳。豐田一直在說，關於電氣化，我們將成為一家電動汽車百貨公司，換句話說，這意味著我們將擁有完整的電動汽車陣容，以便我們可以將其交付給各個地區和市場，世界各地的客戶，讓我們的客戶選擇他們想要使用的東西。這就是我們一直在說的是我們的方法。

And for each region, especially the energy situation that will be supplied there and also the fuel situation is completely different. Therefore, in Europe, there's a lot of renewables. So battery EVs will be good. But in other regions, there should be other options that will be most appropriate for them and to have the consumers, users select it. So this has always been our approach.

對於每個地區，特別是那裡將供應的能源情況以及燃料情況都是完全不同的。因此，在歐洲，有很多可再生能源。所以電池電動汽車會很好。但在其他地區，應該有其他最適合他們的選項，讓消費者、用戶選擇它。所以這一直是我們的方法。

And for what you have mentioned, Mr. Kigawa, regarding battery EVs, we also think that for both quantity and cost, if the renewable energy is reduced further in terms of cost and have more supply, then the battery EVs will be a very good potential CO2 reduction vehicle, a very good solution. And as you have mentioned, the batteries, Toyota is going to make JPY 1.5 trillion investment to build that foundation for supply. And also within United -- America, we're going to make until 2030 the battery plants -- making investments of JPY 380 billion. And for -- until 2025, the battery EV investments and lineup, we have committed to 15 models to be prepared in that timing. And then we have bZ4X, the batteries EV -- EV-specified lineup we have announced, so batteries and battery EVs, both of it.

木川先生，對於您提到的電池電動汽車，我們也認為，無論是數量還是成本，如果可再生能源在成本上進一步降低並有更多供應，那麼電池電動汽車將是一個很好的選擇。潛在的二氧化碳減排車輛，一個非常好的解決方案。正如你所提到的，電池，豐田將投資 1.5 萬億日元來建立供應基礎。在美國聯合航空內部，我們將在 2030 年之前建造電池工廠，投資 3800 億日元。對於 - 直到 2025 年，電池 EV 投資和陣容，我們已承諾在該時間準備 15 款車型。然後我們有 bZ4X，電池 EV——我們已經宣布的 EV 指定陣容，電池和電池 EV，兩者都是。

To other -- it doesn't -- compared with other OEMs, I don't think we are inferior. I think we are preparing ourselves to be competitive in the competition with other OEMs regarding batteries and battery EVs. So we will be steadily promoting this approach and plan. However, up to now, we have been saying many things. But at the end, battery EVs, you need to have the clean energy as the base. If you have clean energy as the premise, then -- as a precondition, then it will be very effective.

對於其他 - 它沒有 - 與其他原始設備製造商相比，我認為我們並不遜色。我認為我們正在準備在與其他 OEM 的電池和電池電動汽車競爭中保持競爭力。因此，我們將穩步推進這種方法和計劃。然而，到目前為止，我們已經說了很多話。但歸根結底，電池電動汽車需要以清潔能源為基礎。如果你以清潔能源為前提，那麼——作為前提，那將是非常有效的。

But unfortunately, in Japan, with our energy situation, rather than battery EVs, the plug-in hybrids and the other electrified vehicles meet our conditions. It will reduce the CO2 emissions in Japan, and also, it will be also easy to buy the product. And then that will also contribute to reducing the CO2 emission in this region. So this is also what we have been saying.

但不幸的是，在日本，以我們的能源狀況，而不是電池電動汽車，插電式混合動力車和其他電動汽車符合我們的條件。這將減少日本的二氧化碳排放量，而且產品也很容易購買。然後這也將有助於減少該地區的二氧化碳排放。所以這也是我們一直在說的。

And also in order to promote electrification, having the options, a wide variety of options of electrification is what we want to do. And that means the full lineup of electrified vehicles in Toyota terms. So in order to prepare this full lineup, we will be working on various technical innovations so that Japan's 5.5 million employment related to this industry can be protected. This is another message that we have been saying.

而且為了推動電氣化，有選擇，各種各樣的電氣化選擇是我們想做的。這意味著豐田的電動汽車的完整陣容。因此，為了準備這個完整的陣容，我們將致力於各種技術創新，以保護日本與該行業相關的 550 萬就業機會。這是我們一直在說的另一個信息。

But very unfortunately -- so we are going to do a lot of electrified vehicle projects. But what is happening now, that will be a question that we have been asked. And unfortunately, some people are saying that Toyota is a promoter of hybrid and is against the promoting battery EVs. Unfortunately, that is how we are talked about. But -- so I'm feeling a struggle of -- it's very difficult to communicate what we're trying to do. So that is also a fact, feeling that our message is not really conveyed.

但非常不幸的是——所以我們要做很多電動汽車項目。但是現在發生了什麼，這將是我們被問到的一個問題。不幸的是，有人說豐田是混合動力的推動者，反對推廣電池電動汽車。不幸的是，這就是我們談論的方式。但是 - 所以我感到很掙扎 - 很難傳達我們正在嘗試做的事情。所以這也是一個事實，感覺我們的信息沒有真正傳達。

And so how we have people -- how we communicate this, how we can receive the understanding that Toyota is very serious in promoting the battery EV, this is something that we still have to consider and plan. And that is a struggle that I have right now regarding how to communicate. So I very much appreciate the advice and comments from the media, too, so that we can think about how we will be able to better communicate. I'm sorry, I received -- I'm giving you back a question receiving a question, but I hope that we can work together in that communication side.

所以我們如何擁有人——我們如何溝通，我們如何理解豐田在推廣電池電動汽車方面非常認真，這仍然是我們必須考慮和計劃的事情。這是我現在關於如何溝通的鬥爭。所以我也非常感謝媒體的建議和評論，讓我們思考如何才能更好地溝通。很抱歉，我收到了 - 我正在回复您收到的問題，但我希望我們可以在溝通方面共同努力。

Well, then about the battery EVs, how you explained that, especially the communication to consumers, you said a little earlier that you are well positioned to compete with the other OEMs. And probably the way that you expressed this should be changed. I think I need your advice on that. Well, we always talk about we're going to show media it's better to have a more concrete lineup of battery EVs more clearly and show it to the present consumer. But we'll now be putting our heads together to think strong -- to think about what is the best way of expression in communicating our intention for the electrification promotion.

那麼，關於電池電動汽車，您如何解釋這一點，尤其是與消費者的溝通，您之前說過您有能力與其他 OEM 競爭。可能你表達這一點的方式應該改變。我想我需要你的建議。好吧，我們總是說我們要向媒體展示，最好有一個更具體的電池電動汽車陣容，並將其展示給當前的消費者。但我們現在將齊心協力，認真思考——思考在傳達我們對電氣化推廣的意圖時，最好的表達方式是什麼。

[Interpreted] Thank you very much, Mr. Kigawa. And with that, we'd like to end our financial results briefing. Thank you very much for joining us despite your busy schedule. We would like to end our press briefing here. Thank you.

[解釋] 非常感謝您，木川先生。至此，我們想結束我們的財務業績簡報。非常感謝您在百忙之中加入我們。我們想在這裡結束我們的新聞發布會。謝謝你。

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

[此成績單中標記為已口譯的部分由現場通話中的口譯員朗讀。]