Earnings Call: Q2 2023

Nov 8, 2022

Good morning, ladies and gentlemen. Thank you very much for taking time out of busy schedule to attend our business results briefing for the Q2 ended September 30, 2022. My name is Kaji. I'll be the MC. I'm from IR Group. Let me first introduce our attendees for today. Representative Executive Officer, President and CEO of Fujie san. This is Fujie speaking. Good morning. Representative Executive Officer, Executive Vice President and CIO, Shiragami san. Good morning. Executive Officer, Senior Vice President, General Manager, Global Corporate Division and Corporate Service Division, Sasaki. Good morning. Nice to speak to you all. This is Masai speaking. Nice to speak to you all. Executive Officer and Vice President, General Manager, ImmunoScience Division, Maira san. This is Maira speaking. Nice to meet you all. Executive Officer, Vice President, Supervision of Frozen Food Kawana san. Executive Officer, Vice President in Charge of Finance and Investor Relations, Nakano san. Nice to speak to you all. Executive Officer in charge of Sustainability and Communications, Morishima san. Nice to speak to you all. Corporate Executive General Manager of Global Finance Department, Mizutani. In addition to the 9 regular members, we are joined by 2 General Managers: Corporate Executive General Manager of ImmunoScience Division, Michael Lisch. Good morning. Corporate Executive General Manager, Quick Nourishment Department, Mori Sun. This is Morris speaking. Nice to meet you. Regarding the 2 businesses, We'd like to address, including those 2 personnels we just introduced. And because we have an English speaking attendee, when Michael san gives a presentation, Simultaneous translation or interpretation will be provided. The entire session will be 90 minutes. Today's presentation materials are posted on IR website for you to have a look. Today's session is recorded, including the Q and A and will be posted later at a later date on our IR website. Please be advised. Now we'd like to begin our program. We'd like to invite Fujio san to present forecast for FY 2022 and initiative for In housing corporate value, Fujisan, the floor is yours. Thanks to speak to you all. Good morning, ladies and gentlemen. This is Fujisan speaking. On a daily basis, thank you very much for your continued support to Ajinomoto, and thank you very much once again to Take your time out of your business, schedule to attend a briefing, and I truly look forward to this opportunity to dialogue with you. Well, my presentation will be shortened so that because we have a huge large number of attendees, So through the dialogue, we'd like to introduce how we are to further enhance our corporate value. To solicit your advice, that is the purpose of today's meeting. And for that, we'd like to seek your support. Next slide, please. And this is our agenda for today. I'd like to mainly raise 3 points. And next slide, please. Well, I'd like to convey The following five points. 1st, during the first half, we achieved increase in both revenue and profit, and they were record 5 on a 6 month basis. Number 2, seasonings and foods as well as frozen foods faced cost increase. During the first half, Through price increase, we were unable to actually offset the entire impact with price increases, slightly lowering profit. However, the Health Care and others continue to grow. And thanks to the weaker yen, we were able to achieve a profit increase. And in terms of the full year forecast for FY 2022 was revised upward for both sales and profit. And with that, we decided to increase dividend and buy back shares as part of enhancing shareholders' return. Number 4, There are 3 outstanding issues, especially with the domestic frozen food or excuse me, food sustainable growth and the as well as the profit structure of frozen foods as well as seasoning and food segment profitability. We'd like to further clarify the issues to accelerate the speed of measures so that we can continue achieving the further corporate value enhancement. Number 5, Through the dialogue with stakeholders and shareholders, we'd like to further evolve our midterm ASV initiative towards achieving 2,030 towards formulating 2,030 roadmap. Next slide, please. From now on, I'd like to introduce the finance summary of finance results for the first half and business forecast for FY 2022. Next slide, please. And this is the summary of financial results for the first half. Revenue was up and reached a record high level, and the Major segments all increased sales. Business profit stood at JPY 74,300,000,000 and which was a record high for the first half year basis. Without currency translation effect versus last year, the ratio stood at 97.1 percent, But it's slightly up from the previous year's 96.2%, thanks to price increase and cost cutting initiatives, which are generating results. So we'd like to further the activities. And regarding the net profit attributable to owners of parents, Last year, we posted the divestment excuse me, the sales gain on Sales of fixed assets last year, which is absent this year. So the result is 11 is up 11.4%. And in terms of The change is behind the BP change. The sales increased JPY 42,100,000,000, but the Cost increase amounted to JPY 20,100,000,000 and the SG and A had a negative JPY 17,300,000,000. As a reference point, These are included in the chart. Next is by segment. As you can see and this will be explained later in detail, especially for the frozen foods. Next slide, please. These are the factors behind the changes in main and secondary fermentation raw materials. Currently, there is an upward pressure in terms of the prices of some of the main fermentation ingredients, which will be explained later in a subsequent slide. And this shows cost increase as well as expense increase and how to offset the impact. At the beginning of the fiscal year, I reported the following. Of the cost increase of JPY 40,000,000,000, JPY 30,000,000,000 was offset At the beginning of the year, it was visible. But with uncertain remaining 10,000,000,000 yen, we reported initial forecast of JPY 124,000,000,000. That was our initial forecast. However, the cost increase because of the weaker yen will top JPY 50,000,000,000 instead of JPY 40,000,000,000. On the other hand, the effect of measures to offset the impact will be increased from JPY 30,000,000,000 to JPY 45,000,000,000. Therefore, at this stage in time, the net negative impact will be reduced from JPY 10,000,000,000 to JPY 5,000,000,000. And at the last portion of the Impact of price increase, especially for foods and frozen foods. We will further introduce price hikes after October. And regarding and through price hike as well as cost reduction exercises, we'd like to Further recover or ensure business profit is recovered from next year onwards. Next slide, please. This shows the full year forecast, which was revised upward. And we project to reach the sales of 1.36 7,000,000,000,000 yen and business profit of JPY 133,000,000,000. This is a revised forecast. Even excluding the ForEx impact, we can surpass last year's results. Next slide, please. This shows changes behind BP fluctuations. As you can see, Regarding the exchange rate, which will be further repeated at the end of this deck, but the exchange rate was revised from JPY 120 to the dollar to JPY 135 to the dollar. Next slide, please. This shows The factors behind changes in BP by segment. For frozen foods, So we have revised the forecast down by JPY 2,500,000,000 from the initial forecast, which will be explained later. Healthcare and others was revised upward by JPY 8,200,000,000. Next slide, please. This is a list of core KPIs. In order to achieve the DMTP targets, as you can see, we are making steady progress. So the next slide is about the by segment forecast for the priority KPIs. As you can see, we are going forward towards achieving our targets. Going to the next slide, please. So this is the progress of a structural reform. For this fiscal year, We will be reducing our asset and then conducting resource allocation and selling our cross sell holdings. So we have been progressing this. In this midterm business plan, we have been able to achieve our targets. By FY 2025, This JPY 200,000,000,000 asset reduction, we would like to accelerate this as much as possible. The next slide is about the progress of a structural reform. This is about the structural reform about our noncore businesses. As you can see, is progressing. I'm going to the next slide and onwards. This will be the initiatives for organic growth. As you can see, in Japan, for the at home, restaurant and industrial use products, Each combined, we have been able to increase our sales. For the in Japan, the rice Related new products, which the price is stable. So we are seeing a recovery, and we are trying to transform that we could come back with new menus. Therefore, the restaurant industrial use products, therefore, the eating out is recovering, and we think that inbound tourism is going to increase. The next is about the overseas seasoning and business, our seasoning and foods business. Basically, we have a very strong brand, meaning that we are aggressively increasing our prices and sales volume is being increased as well. So based on this market change, we have to accelerate our readiness and respond to that, and we think this is very important. I I think we have become more and more capable of doing that. So the next slide is so the umami's Seasonings and flavor caisings are main state products. The headwind has been blowing towards these products. But even so, We have been able to grow these products. So by leveraging our strength, we think we'll be able to leverage our strength going forward. The next Slide is about our frozen food business. So this has been a source of concern to all of you. So in terms of progressing structural reform, we have been impacted by COVID or any inflation. The amount of BP has gone down and the second half of last fiscal year, as you can see, it was a loss making business. However, we have been Certainly, increase in the prices and improving productivity, rearranging the portfolio and restructuring the production. So we have been progressing these initiatives. 2. So the first half of this fiscal year, we are in the midst of recovery. On the other hand, further cost increase And in the U. S, the signs of the recession is being seen. So the volume has started to go down a bit, including this condition in terms of the outlook. We have made a downward revision for the outlook for this business. So in that sense, it means that a further structural reform may be necessary. This is some there has been some feedback, and I completely agree with that. So as you can see on the right hand side, from number 1 to number 4, these initiatives should be All would be carried out. On top of that, further structural reform is being considered. For instance, the growth categories, the Asian categories, Not all the products are growing. There are some low profitable low profit products. We are considering withdrawing for those low profit products. And in relation with that, so the restructuring of the production should be accelerated. So this is what we are thinking. Well, the next slide is temporarily, the growth has been slowing down, but the market in Self is growing. That will be the Asian category. This core we will be focusing on these core categories and I think that we can grow again in this business. So the next slide, as you can see, in the North American Consumption is becoming polarized, and we are taking initiatives against that as well with Gyoza. So it has a high potential, And I think I have talked about that and it's growing strongly overseas. If you look at the this fiscal year, So the overseas sales of Gyoza is expected to exceed the growth of Japan. So it's growing strongly. So the overseas gyoza has a high unit price. In terms of nutritional balance, it is very good. So by the Gyoza sales increasing, it means that it can become a growth driver into the future. So the next slide is about the frozen food significance of the frozen food business. So let me explain again. So this would be a has a potential to become a growth driver into the future. And in terms of the ASP, the Agilent Motor Group's share value, I mean, by solving our social challenges, we will be generating economic value. For instance, for Gyoza, it's very easy to cook and you can Consume carbocarbons, meat and vegetables, and it's easy to cook and easy to consume means that it will lead to solve food and health issues, and this will contribute to the corporate brand. Japan, North America, specifically, The Frozen Foods brand is contributing to the corporate brand overall. Next slide, please. So next is about the Electronic Materials business. Well, the semiconductor business is slowing down And other concerns voiced about our Ajinomoto Electronics Materials business. But from our point of view, So the PC market has been slowing down more than expected. But as I've said before, Within our company, the exposure to PC is less than 30% 70% of our exposure is to the server and the network business. So maybe temporarily, the growth momentum may slow down. There is a possibility of that happening. But Going forward, in the midterm and continuously, this Electronics Material business will be a growth driver and and strongly drive the Ajinomoto Group's performance. So in the next slide, this is about the 5 gs situation. The 5 gs market is continuously going to grow. At the same time, ABF, The buildup film, the shipment volume in terms of the CAGR It's going to grow by 18% as planned. And in terms of the A future demand increase of ABF is going expected. We have been we will be increasing the capacity ahead of schedule, part of that of CapEx, that is. Next is about the assets and liabilities. So as you can see that it is shown as here on the graph. But temporarily, our net debt to equity ratio has gone up temporarily, but we have controlled that and it has started to go down. And if we go to the next slide. Regarding cash generation. Fiscal year 2022, operating cash flow is revised to top, JPY 112,000,000,000 Because of the weaker yen, our account receivables as well as inventory was increased. Therefore, our working capital temporarily plunged, but this was within our expectations. So we aim to further generate cash. Next slide, please. This is strategic investment. As we have reported earlier, we would like to shift So towards our investment from tangible to intangible assets to make it fifty-fifty in order for us to accelerate growth in the future growth areas. Next slide shows the core KPI or priority KPIs trend. And things are moving ahead of the MTP. Regarding EPS, this is expected to top JPY 150. That is our forecast. Next slide describes 2022, 2022 operating cash flow. On the left hand side, this is likely to exceed 400,000,000,000 yen The next slide. Based on this the current situation, well, regarding the growth Strategy as well as shareholder return. We revised the business profit make the upward revision as well as the current cash flow. The dividend will be up by JPY 10 compared to last year and JPY 4 from the initial forecast to top JPY 62 per share. In addition, we will buy back shares amounting to JPY 30,000,000,000 or the which is capped at JPY 30,000,000,000 or 10,000,000 stocks and this is already decided then that the buyback share will be later canceled. From now on, We'd like to introduce our initiatives towards growth strategy and how to further enhance our corporate value. Next slide, please. As I have reported earlier, through the organic growth of existing businesses and the business model transformation as well as the growth driven by 4 growth areas and integrating Food and Amino Science. In 2021, The profit generated by food and profit generated by Amido Science used to stand at 2:one ratio, But the food business grew 3% to 5%, while AminoScience planted seeds or is planting seeds, which are growing to bear fruit. And ImmunoScience will continue to continue its double digit growth. So by 2,030, we'd like to make the business profit ratio coming from food as well as ImmunoScience to 1.1 to 1, which will be a unique food company. And in 2022, the forecast once we achieve the forecast, then The profit generated by food will top 60%. The remaining 40% will come from ImmunoScience. So we are even one step closer to the fifty-fifty ratio. Next slide describes the speed up and scale up portion. Under the new management system, this under this slogan of speed up and scale up, we made our progress. In the 100 day plan starting from April, We increased even accelerated the speed of management. Especially with the war in Ukraine And the weaker yen or exchange rate impact, we were able to flexibly deal with the situation and visualize the current situation in order to make us a speedy Management decision. So we were able to change gears under the 100 day plan, and we were able to actually raise our capability to deal with a Highly fluid situation. In terms in addition to the speed up and scale up, in 4 growth areas, business model needs to be transformed. So that is the BMX transportation that we'd like to create as a template. Next slide, please. This shows the BMX 4 areas of BMX or 4 growth areas, namely health care, food and wellness, ICT and Green. Those were identified as 4 areas of BMX. We try to find out how we can From a midterm perspective and continually, we can take advantage of our strengths to enjoy tailwind. That is how we I'm thoroughly debated this internally, and we identified these 4 areas of BMX. Today, of the 4 areas, I'd like to introduce 2 business areas. One is food and wellness. Especially, we'd like to enhance our marketing activities in this domain. For example, in for domestic soup as well as Thailand the sales trend in Thailand, We are creating new domains. And by accumulating these new initiatives, we were able to achieve growth. And we'd like to standardize this growth to further evolve The pattern so that we can ensure our organic growth. And I'd like to cite one example. This is, kukudu Chow Sauce. The users who do not who never purchase oyster sauce, We delved into why they do not purchase oyster sauce. And then So may propose that child sauce as an alternative, and this initiative is already rolled out. In the last 5 years, In Japan Food Business, B2C, we were not able to create a big hit in terms of the new products and new category. And by reflecting that, Masai san, who is the General Manager of Food Business, We appointed the marketing personnel to invite a cutting edge external expert on in marketing. In order for us to actually further sophisticate this template of success, next slide describes food and wellness. By leveraging the marketing model in food and wellness, and this area falls under the green of the 4 BMX areas. And plant based protein hamburger mix is already launched in Brazil, and I already tasted the sample. And this is it was very delicious. So from this slide onwards, this will be the presentation of Health Care. So I would like to ask Mr. Mike Lisch, GM of the Animal Science Division. Mike, the floor is yours. Thank you. Before I start The slides, I would like to give a brief self introduction. My name is Michael Wish. I started my Jinimoto career in 1991. I've worked for a Jinimoto North America for the 1st 30 years and for the last 1.5 years I have been in Tokyo. Currently, I am General Manager in Immuno Science Division. Specifically, my responsibilities are the pharmaceutical amino acids and food as well as the media business areas. So with that said, these next few slides will discuss the BMX transformation And the dramatic expansion of healthcare as well as our new partner in the cell culture media business. So before going directly to the global partnership in the CCM market, let me touch base on the recent sales growth in our Healthcare business. For the amino acids that are in the food, pharma and media markets. As shown, Jim Moda has been manufacturing amino acids Since the 1950s, we've been supplying amino acids for the food, pharma, wellness as well as entering the new media markets. The bottom graph clearly shows a very nice sales expansion within our Healthcare business from 2014 to 20 21. Next slide please. I'd like to touch base just on the cell culture media market. In the bottom right, You can see the forecasted market growth through 2,030. This is very significant growth that will require pharmaceutical amino Supplements, but more importantly, it will require high performance cell culture media in order to meet the demand of our customers. This is a tremendous opportunity for us to meet this growing need and to expand our sales in the future. Next slide please. On this slide, we show the history within the cell culture media pharma market for Jinimoto. In 1987, we established our first media, ASF. However, in 2012, with a joint venture with Genexime, We established AGX. This joint venture was to manufacture the media itself versus just provide the ingredients. The location of this was in South Korea. In 2018, we established our 2nd media, Cellist, And in 2019, to support our customer base and their needs, we established a customer service center in South Korea To be able to provide solutions to our customers that are looking for more high grade media. We have two strengths in this area today. I think the speed of providing media and optimizing that product to meet our customer needs is one of the biggest strengths we have. The second one is the stable supply, not just So the pharmaceutical amino acid and supplement ingredients, but the media as well. Next slide, please. And this those three sides lead me into this discussion with our global partnership. So I'd like to touch on the recent press release on the collaboration between JSR and Injinomoto. We believe this collaboration will further our ability to expand into this growing cell culture media market by leveraging the strengths from both companies. For Jinimoto, adding JSR's high performance media to our portfolio as well as manufacturing this media at our site AGX. This partnership allows future business growth globally. And second, also importantly, Being able to utilize JSR sales channels within the U. S. And EU markets will help us expand into 2,030. Next slide, please. Before we start this, I'd like to show a video from Tim Lowery, General Manager of GSR Life Science Division. And I'd like to listen to his comments on this collaboration. Hi. My name is Tim Lowery, President of JSR Life Sciences. We're excited about this collaboration with Ejinomoto. Their advanced technology, high quality assurance systems and market reach makes them a great fit to commercialize the Celeste Basil Cho MX in Asia. At JSR, we're also excited to bring this media to the North American and European markets because it will expand our ability to bring our Well, from my side, I would like to talk about the value creation story through human resources. So this will be the driver. The foundation will be the human resources. So at the September IR Day, I have talked about this Our intangible assets, specifically the human resources that will be the foundation, is very important. We have to enhance that. So next, we have in our engagement survey, we have included ASB realization process. So the ASV really is in process. By improving that, we would like to create outputs. So and by doing so, we will Accelerate the cycle of the ASV Management. The next is the kind of the Quick report, a preliminary report on the engagement survey. So as you can see, there are various numbers out there. Basically, they are going up and then good scores has been shown. Specifically, in terms of the 75 for the ASP realization process, As among the global top companies, we have been able to see a good high scores. However, that said, this 75% From FY 2020, it has not grown. So we have to We increased this and enhanced this outcome, and we'd like to put in initiatives to do so. Next is just what you're referring. At Forbes Japan, so as an inclusive company ranking 100, We ranked number 1 in the Stakeholder Capitalism Ranking in Forex Japan. Specifically, among the 5 indicators, Evaluation points, employees and EARTH, we have been able to get high scores. On the other hand, The shareholders, the client consumers, I think the score is not high enough. So we'll take put in countermeasures. And if you put in countermeasures, if you take initiatives, I think the numbers will Speak for themselves after that. So the third point is the midterm ASP initiative for the 2,030 roadmap. So officially, at the end of February 1st March, the we will disclose this internally and externally. But currently, I would like to it's a kind of preliminary announcement. I would like to give you some taste, a flavor of what we are discussing right now. So this is since after I took this position as the CEO, what I have gotten feedback from the investment and the analysts. So with the dialogue with various shareholders, I have been conducting multiple dialogues. So I have been able to get very precious And feedback advice. So for the midterm ASV Initiative, I will reflect that so that I hope that we will be able to sympathize or Feel comfortable with what we are doing. So the next slide is from the midterm management plan evolving from the midterm management plan to evolve to the medium term ASP initiative. So the automotive group, we had a 3 year midterm plan. So From 2020 to 2022, this midterm plan, we think we'll be able to achieve the targets. But before that, The midterm plan we were not able to achieve the midterm plan targets. So why did this happen within the management? We have repeatedly conducted discussions in asking ourselves the reason. So our existing midterm plan, we were focusing very much on The detailed plan and we would too much focus on the sums up of the very detailed numbers. So I think People got fatigued by the time the plan was compiled and tend to be just plans and not achieved. So it's a kind of a plan, plan, plan, plan. So PPPP, maybe a midterm planning mandate, so to speak. So we reflected on this situation. And based Based on this finding, in a very in a situation that is very difficult to foresee what's going to happen, we should try not to come up With very precise figures from the 3 years onwards. But we should backcast from the future from 2,030 and then And the next slide is that what is the methodology, what is the concept of these indicators. So this is just preliminary. So in terms of AESV indicators, so as a commitment, So the single year performance forecast, of course, we will show you that and we will realize that and we will seriously Focus on ASV and create new values and then pursue business model transformation and challenge, the ASV indicators. So that will be the midterm ASV management, and we'll promote that. So first of all, we would look at 2,030 and management will uphold a challenging target showing targets for the 2,030 indicators and the management think about how the path should be to reach there. The next slide will be the last message from my side. As I've been saying to you before, So purpose multiplied by passion, purpose multiplied by operational excellence. And if we beat up in scale up, it will be a focus. So the FY20 22, I think we have been able to get achievements even in the first half of this fiscal year. So going forward, Towards the midterm ASV management is going to the initiative of that, we will seriously focus on intelligent ASV management. At the same time, globally, there are signs of recession. So we should Visualize and accelerate the speed of our management as much as possible and leverage to strengthen the business portfolio so that we can sustainably enhance our corporate value. Thank you very much for your attention. Judith, and thank you very much, Rup. Thank you for presentation. Let's go to the Q and A session. Now first of all, I'd like to introduce how to raise questions. If you have any questions, please press raise your hand button on your screen. And we will call out the name of the person to raise a question. If you are appointed, please unmute and please state your question. Overseas participants are welcome to ask questions in English. Simon Sinek's interpretation will be provided. And we'd like to limit the number of questions to 2 per person. Please be advised. Because of limited amount of time, we may not be able to entertain all of the questions in time. First of all, we'd like to take questions from Saji san, Mizuho Securities. Thank you very much. This is Sagi speaking. I'd like to raise one question. In Japan, The weaker yen forcing foreign workers Actually, do not 3 suffer from labor shortages because the income level is very low in Japan because of the weaker yen. That is the current situation. There are two aspects of this. There are issues faced by Ajinomoto, but solution and ingredients itself. How to offer values to users? Well, there is more opportunities for Ajinomoto to offer values 2, users of SNI. In terms of labor shortages, How does that impact to the manufacturing industry, especially consumables? What is your perception about this. And are there any opportunities and risks associated with this one? Thank you very much. Sadie san, thank you for your question. So I'd like to Masai san I invite Masai san to address this question. Sadu san, thank you for your question. This is Masai speaking. To that question, I'd like to answer. First of all, in terms of labor shortages, yes, this is happening. At Ajinomoto, we have domestic production. Ajinomoto Food Company is integrating the production, And we are promoting automation at the factory floor. So in that sense, we are more We can withstand the labor shortage issues. And as your point is taken, but we'd like to keep monitoring the situation closely. And also, The situation is highly fluid and solution and ingredients you mentioned. On our part, Through this by promoting this area, we are collaborating with start up firms. In terms of partnership and collaboration, we are pursuing that opportunity. And by doing so, we can see New businesses or new solution model emerging out of this external partnership, so we can work on a next page of roadmap. Thank you very much for the question. Thank you. And also, I'd like to expand on that. This is Fujie speaking. Especially for Food Services, Labor saving menu and long lasting seasonings, those are the once that receive a large number of inquiries. So by capturing this as an opportunity, we'd like to make sure we can increasing our business or expanding our business. Thank you very much for the question. And that's it for me. Thank you. Thank you very much, Saju san. Next question. SMBC Nikko Securities, Takagi san, please. Hello. This is Takagi. My first question is to Mr. Fujie. So the Ashinomoto's weakness, What is your take on that? 3 years ago, the weakness of Genomoto was The responsiveness of the macro environment, that was the weakness, but you have been very resilient. And actually, maybe that's the strength right now. So From your point of view, what is the weakness of Ajinomoto? How are you going to improve that? And how are you going to reform that? What type of preparations do you have? First, that's my first question. Should I ask my second question? Well, first of all, this is Huji speaking. Maybe I should respond. Thank you very much for your question. So what we're trying to do is that With Nishih san and the current management is debating about this, I think the biggest challenge is to scale up. We have to have the capability to scale up of business. So in terms of the Amnescience business, the format of scaling up the business, we have been able to have a definite way in terms of scaling up for the internal materials of biopharma services. And Mike has talked about Amino SG related business. That has been driving the Ajinomoto Group's business. So in that sense, In terms of food, for the overseas, excluding the overseas seasoning and food, Scaling up the business and the Agilomoto Group overall scale up. We have to come up with the format and we should steadily and evolve these initiatives and speed up our initiatives. I think one representative initiative would be the BMX. We have 4 growth M domains and we have decided on that. I have talked about that already. So in terms of the specific example, we are planning very thoroughly, and we are planting seeds to be able to Achieve that by the end of February to the beginning of March, I think I'll be able to show you more specific examples. But even before then that, we a lot of initiatives are progressing. So Shilohim san, do you have any follow-up? Hello. Thank you very much for your questions. So as Fujie has said, From our point of view, leveraging our strength and by doing so, overcome our weakness and then change the weakness into strength. So through BMX Business Model Transformation, that is what we are doing. So for the Immunoscience and Healthcare and Electronic Materials I think we have been quite successful, and we have this type of format in terms of how and in terms of the future growth. We're quite confident about the future growth. So by utilizing the format in the food business, in the food and wellness and green, that would be the growth domains that we are focusing on. And we are so for the SV indicators for the midterm plan, we are focusing on how we're going to achieve that. So towards February to March, I think we'll be ready to talk more specifically about that. Well, thank you. So for the Food business, coming up with the kind of a format, I think it's very, very challenging. So What is a challenging point within your company? Or conversely, what is the opportunities? Can you speak more on those points? Masai san, can you talk to that? Thank you. So I would say that Maybe our weakness? Obviously, we'll be linked to our weakness. But going forward, we The younger generation is going to support this country in the future. We should focus on the younger generation, and I think that is very important. So the food and wellness domain, new momentum should be created, And I think that will be the key. So we have young, excellent, talented human resources. And the opinions of these younger generations, how are we going to reflect them? How are we going to ride the wave of change will be the focus. This will be reflected in our next road map. Understood. Thank you very much. Well, my second question is So I looked at the presentation materials. Slide number 50, so the performance Outlook image. So next fiscal year, the profit is going to go up. And then Next, going forward, it will just grow strongly. Can you comment on this way this graph looks? This slide, Page 50, yes, you're referring to this slide. This blue line I'm referring to the blue line. Well, this is the image. So I would like to maybe this has been a bit misleading. I apologize. So this is an image. So every year performance rather than focusing on the single year performance outlook, the Higher challenging 2023 ASP indicators are there. So I was just showing you the contrast. So sometimes, the Performance will be close to the ASP indicators, sometimes not. And if there is a gap, we will pursue ASP thoroughly and try to You've come closer to the ASP indicators. So just it's an image. Sorry if I misled you. So this blue line, the Trajectory, is that the profit level that you want to pursue? It's different. Is that what you're saying? In terms of the blue line, well, externally, we are Saying, we think it's our responsibility to say that this is our forecast. So for a single year single fiscal year, so we will be giving forecasts. So that will be basically these blue lines. But if you just focus on that, this challenging planting season, Challenging objectives and I'm showing the path towards 2,030, we'll not be able to do that. So we always have a challenging initiative. And at the same time, how are we going to achieve these challenging initiatives? We always have to consider that. So that is what this graph means. Understood. So I shouldn't really try to take this seriously, well, take this as a reference. Well, currently, no. But If you look at next fiscal year, this year, So you have taken some counter initiatives. So FY 2023, it may be in terms of the profit growth For your company, so latter half, single digit or maybe more than that, towards 2,000 and 30, I think that is the type of profit growth that you are expecting. So is that the type of guideline that I should expect? Well, first of all, for FY 2023 outlook, So the raw material cost situation, I think it is still be tough. Some will stay at a high level, some may go down. But In terms of the price increases, we will accelerating our responses on that. And in terms of the structural Reform, I think that will be more and more necessary. So we will focus on structural reform and improve our efficiency. And by doing so, including the contribution coming from growth domains, for 2023, we will increase our profits. So we want to maintain the momentum until 2,030. So the ASV indicators of IFI 2,030, We want to pick some cost to those indicators as much as possible. Thank you very much. Thank you very much. We'd like to take next questions. Fujairah san from Nomura Securities. Thank you very much. This is Fujairah speaking from Nomura Securities. Nice to speak to you all. Regarding structural reform, I'd like to raise several questions. First, In terms of financial results, it was very solid. But what was shocking was the U. S. Frozen food. In 2014, since the acquisition, 8 years has passed and we are yet to achieve a breakeven point or lower the breakeven point. In terms of ROIC, 5% or even more than 5%, in order to maintain or achieve that, what structural reform will be taking place? During the past so 8 years, what was the reform? And then how is it going to be different this time? That is my first question. Next, Regarding seasonings and foods, well, seasonings, the brand equity as well as share is very robust. So it is very percent towards inflation. But not only seasonings are included. Powdered beverage as well as instant noodles are included, And powder beverage struggled this year. So in seasonings and foods, will you accelerate selection and concentration down the road? Those are my two questions. Thank you. Thank you very much for your questions from Fujairah san. I'd like 2, I'll point Kawana san to address the first question. And for the second one, Morisana and myself will deal with the question. This is Kawana speaking, responsible for frozen food. Nice to speak to you all. Regarding U. S. Frozen food, Currently, well, 8 years have passed. And what we have been doing, that was your question. In the first 5 years since the acquisition, we were unable to perfectly fit the business. The former Windsor The company will low profitability business, were it not flexibly or swiftly terminated. And afterwards, non profit profitable businesses underwent structural reform to Shift towards more profitable and growing businesses, and we are still in the process of that. And but the inflation kicked in. Originally, while structural reform is underway And Italian or appetizer, which were all low profitable, are scaled down and reduced in size. And the Extra space is to be utilized for ASEAN products, and we are still in process of that. However, inevitably, Low profitable businesses actually can generate marginal profit. That means Fixed costs were able to be absorbed, excuse me. And if we are to terminate these low profitable businesses and Increased production capacity of Asian products, then the marginal profit was down and then investment had to be made. So there's a time line for us to generate positive impacts. So in terms of the business profit, there is a All right, positive impacts. So in terms of the business profit, there is a best ballet that we had to face. Ideally, this used to happen. This used to bottom out in this was scheduled to bottom out in the first half of twenty twenty one, but the valley of death valley is even deepened because of the inflation and the consumption was down. And Asian foods are yet to offset the negative impact. So in terms of overcoming the death valley, the timing is delayed and the valley is even deeper. So if you could look at Page 20 of the material, in 2021, for the second half, Excuse me, that the valley was bottomed out. And in 2022, first half, we are in the recovery phase. That is the real situation. And going forward, we project a recovery trend. We are formulating a road map towards 2,030, and Plan B and Plan C are being formulated as well. So if we set a certain hurdle, For example, further recession may happen or unexpected turn of events, then we have to execute plan B or C. Thank you very much. Let me expand on that. For the Ajinomoto Group, We are conducting businesses worldwide, and there are regions and areas or businesses that struggle. That is the inevitability for a global company like Ajinomoto. And to address that, We are furthering our ability to address those situations and that's important midterm. And that is The management what management is discussing. So the situation is very grave for some parts of the world. But we need to well, we deployed a bad news first approach to detect early signs of bad things. At the Management Committee, there are 10 priority items. Of that ten items, bad news first is something we make sure at each and every committee meeting. And then once we early detect those bad news, then the local subsidiary Takes responsibility of addressing that matter. If it is above their capability, then the regional headquarters will come in to taking charge or take initiative to deal with the situation and supported by global divisions. If not, then it's escalated to the management level. And then from management perspective, we grasp the situation to Make sure we take necessary measures or we may add additional resources to deal with the situation. So those are the 3 tier to address those struggles or difficulties to support local entities that face hardships. And that is how we ensure healthy expansion of businesses around the world. So I hope that answers your first question. Yes. Thank you very much. And then we'd like to move on to the second question. As you rightly pointed out, overseas Seasonings business, especially in Japan excuse me, in Japan, we became a highly resistant business. But apart from that, we'd like to further enhance our resilience in other parts of businesses as well. So at the management level, There are core businesses. We are discussing how to reform core businesses. And during the executive meeting or training this year, we visualized this. The current level of potential as growth potential as well as the efficiency and what social values they bring. We plotted that on a map. And if there is any Category that struggles, then we can accelerate the speed of reducing more or stopping more or undergo a structural reform to transform the business. We'd like to accelerate the speed of transformation. There are specific examples that I can share. And Mori san, I'd like to ask Mori san to share specific examples. This is Mori speaking. Regarding powder beverage, in AGF, Coffee raw materials, green bean, the price is a big fluctuating factor. And also, We have a large share in stick coffee. The usage of green beans is relatively low. Therefore, it can withstand the rising Raw material costs or prices. So that means product portfolio needs to be strengthened in order to address the rising price of green beans. That is how we'd like to shift our business structure in terms of powdered beverage. I hope that answers your second question. Thank you. Fios san, thank you very much for your question. Next is from cybersecurity's Morita san. Please. This is Morita from Dai Securities. Thank you for taking my questions. I have two questions. One is that I think this was in the discussions. The external environment has changed dramatically. So from next year onwards, So, Fujitsu san, what is the change of the external environment that you are concerned about? What Do you think that the management should respond to? Are there any changes that is a source of concern for the management? Specifically for the I'm specifically talking about the Seasonings and Food business. So for the Seasonings and Food business, compared to the I think in terms of the potential, I think it has been enhanced, but I think it has not been realized. I think that has been a trend in the past couple of years for the seasoning and food. Of course, the raw material classes go up in the COVID situation. Maybe that was a kind of a A bottleneck for you, but for the if you are you have talked about forming a format. From Next fiscal year, structural reform for the seasoning of foods sustainable growth for the seasoning of food, Is it next fiscal really the timing for the sustainable growth of the ceiling in food? Or next fiscal year, you will continue to be responding to the inflation for the raw material costs increase. So what is the stage that the seasoning of food business is at? Thank you. So I will respond to your first point. And for the second point, myself and Masai Masai will respond. In terms of the external environment change of the external environment, So it's what I know what we know is that we don't know what's going to happen. So I think that's a VUCA situation that we're talking about. So how can we respond to that? I think basically, we should be capable to be responding to that uncertainty. So I guess that backdrop. What is more or less visible in terms of the Threat is the reduction or the decline of consumption. So how long would this continue? It Depends on the business, it depends on the market. But in the U. S, B2C market, consumption decline For the non seasoning food area, it has already started. And for a certain period of time, there is a possibility that this will continue. On the other hand, in terms of the seasoning, even Under the recession, actually, we'll be able to exert strength. So For this business, I think we'll be able to steadily grow the business. Against this backdrop, How can we stimulate the consumption, including the marketing investment that we have to conduct that this is what we have to consider. In the short term, I think this type of initiatives will be necessary. So some level of marketing investment budget will be allocated, and we will use this budget appropriately. So for this point, in any case, from FY23 onwards, Well, this will be related to your second question. From FY 'twenty 2 second half of FY 'twenty 2, the price increases will start to contribute. And I have we have been saying that from before. And I think the direction is just as we have explained, that is our understanding. Going to FY 2023, so when in FY 2023, we'll be able to go back to the pre COVID situation? We're still Trying to analyze that, but I think it would be safe to say that the profitability will return. Well, the momentum has started to recover. Actually, we feel that way in our day to day business. So we want to every day put in our efforts so that this can be solidified. And to your second point, in terms of the potential, you have understood potential. But In terms of the format, how will this be actually be effective? In the short term, As I said, for the overseas season business for FY2023 or the second half of 2022 to FY2023, we I think the recovery is there will be a large recovery as long as there are no further cost increases. We are quite confident about that turnaround in the midterm. I think basically, it's very important for us to plant seeds and conduct a BMX and focus on that. So Masai will talk some points about this thing. So this is Masai speaking. Let me touch upon your point. So I myself, Maybe you have heard about this already, but so I have been climbing my career ladder basically on the ImmunoScience. So I have been the GM of the ImmunoScience of the Chemicals, but I'm now in charge of the food business. So from my position. I think the fusion of Immunoscience in Food, I think that will be my very important mission that I have to achieve. That is my understanding. So if you consider that perspective, actually, in this Asian business, the transformation is difficult to see. So one reason behind this is that our products that we already listing product lineup, whether it be food, We utilizes a lot of amino science amino acid technology. So that is what arginamoto or the What other assuming business, so this is designing the deliciousness. So whether it be smell, taste, However, the M and L Science is leveraged, but it's just taken as granted. So even the product development staff Do not understand this leverage. So we want to visualize this. So with this, we want to conduct one transformation. Another point I want to make is that Well, maybe. I'm not the right person to say this, but before the fusion of Food and Immuno Science, the food within the food business, There are 5 businesses in that. So we have I want to combine this in a cross functional matter. So I am in I was focused on ImmunoScience and I want the chemicals and there has some the size is quite different. So food business is quite large in terms of scale. So the I think within these segments, I think there are some silos that has to be overcome. So how are we going to collaborate within the food business? And between the various countries, there are silos. So we I think there has to be some Cost functional or cost market initiatives. So that will be reflected I would like to reflect this in the road map as well. Thank you. Thank you. So it was very interesting. But this fusion with ImmunoScience or the cross Functional integration with the food business, what are you going to start with? From externally, In terms of the first step, where would be the trigger of the first step? So in terms of the design of the design technology of deliciousness, well, amino acid primary function was Nutrition. So basically, the focus was nutrition. But in terms of this will be very useful in designing deliciousness. So this was taken for granted within us, but we have not been able to communicate that externally. So What we are very proud of, this design of deliciousness, this utilizes the amino acid technology. How can we communicate that? So we are discussing about that within the members. So this is a bit vague, but it's not nutrition, but deliciousness. I think that's the perspective that we want to communicate. So marketing, product development is going to start from there. Yes, another point is that product development well, Marketing division has great influence in the product development, but R and D, marketing And manufacturing or the salespeople who have direct contact with the customers, they are They should be contributing to the product development, including marketing. So not marketing oriented specifically, but this field should Conducted from the other areas as well. Well, thank you. Well, that has been well, a price increase was Well, that was important. I think basically going to go to a different stage. So I am very interested in when this This is going to happen. So I would be looking forward to the feedback. Yes, yes, we are going to start from right now. Thank you very much for your expectations. Thank you. We'd like to take questions from Yamaguchi san, Goldman Sachs. Good morning. This is Yamaguchi speaking. My first question pertains to the progress of structural reform. Well, today, we talked about this, especially on frozen foods and coffee, those are the low profit margin, very low in terms of their profit margin. And ROI level is going up. So well, the work needs to be raised, and we you need to actually do something about these low profit businesses. So What are the concrete measures you are already taking place? And the next February, you are to announce your MTP or new management plan. But this list needs to grow. So if you can comment on the structural reform progress, please comment. My second question pertains to JPY 400,000,000,000 excuse me JPY 40,000,000,000 and JPY 10,000,000,000 in terms of share stock buy share buyback. And how did you actually excuse me, at JPY 30,000,000,000 in terms of share buyback? And what was the calculation behind it? Thank you very much for the question, Yamaguchi san. Regarding structural reform, I'm sorry for causing the concerns about the structural reform. Well, structural reform is underway for the businesses that face challenges, especially on frozen foods. As Kawanasa mentioned earlier, the current structural reform is underway, and we are considering Plan B or even Plan C for for a worse situation. And this reform is undergoing. We are undergoing this reform right now. And in terms of the coffee business, especially with the AGF profitability that is faced is struggling. So within our executive training meeting, we discussed this matter. We need to create our portfolio to address the issue. As Morrison pointed out earlier, Coffee green beans. The price is highly fluctuated by the price of green beans. It is very with that, we will be it will be difficult for us to further increase the profitability. So stick coffee needs to be expanded. And we are visualizing the current situation to make sure that the structural reform is generating positive impacts. So not only Plan A, but also Plan B are being formulated, and we are closely monitoring the situation. In addition, regarding cash conversion cycle, especially the inventory, which is yet to hover high. Once the pandemic started, We had to make sure that we supply goods to consumers, so inventory was increased. That was how we dealt with the situation at the start of the pandemic. But now the global economy may start to shrink or Going to recession, then the inventory level is a big risk for us. Therefore, we are Announcing all departments, 2, make sure that inventory level will be minimized to achieve to hit the appropriate level reduced to the appropriate level, that is a company wide effort to cut down on inventories. Those are part of the discussions at the executive meeting. And going towards the future MTP or MTB ASV management plan, we need to stop more or reduce more. We have to make decisions. And within the Executive Committee or BOD, we are discussing this matter internally. That is the current situation. To address the second question, well, JPY 40,000,000,000 this year and JPY 30,000,000,000 this year in terms of share buyback. Considering the cash flow situation, well, inventory is up. Therefore, the current Cash flow stands at JPY 112,000,000,000. And considering all these encompassing Landscape, we decided to go ahead with the JPY 30,000,000,000 share buyback. If you could follow-up, Nakano san, could you please comment? This is Nakano speaking. If you could refer to Page 30, in terms of the cash flow forecast For cash in, operating cash flow is the one we prioritize. How much cash will be coming in? And how much of that can be used to invest for growth? And if there is any excess, then we would like to and return the remaining to shareholders. So there needs to be a delicate balance between the 2 to prioritize this these 2. And with that in mind, we decided to cap the amount of share buyback to JPY 30,000,000,000. That is how Ofuji san explained. Thank you very much. So Regarding the first question, in terms of structural reform, this year, cost inflation was prioritized, may have been. But in terms of the competition as well as the demand, based on those, Then by when? If well, unless you achieve what and by when, what is the specific decision For us to evaluate, what is the actually KPI? When you announce the MTP next February March, please show those threshold. And then in terms of shareholder return in the divestment or sales of Kawasaki plant, well, there is an income in cash Slow in that sense. So did you actually factor that in? Or is it something else? Well, I'd like to address the first point. Well, we'd like to show what can be disclosed for you to seek your Maximum understanding in terms of the current status of business and especially the social value we are to create in the future. By ascertaining that, by when, by what level we must achieve what in order for us to continue our business or otherwise, we will make a bold decision to term may have terminated that business. If there is Any item we can disclose at the time of MTT announcement, then we will. And to address the second question, Akano san, could you please comment? Yes. Well, we are yet to complete the sales of the plant in Kawasaki. The timing is yet to be decided. Considering that we are forecasting the future cash flow and based on that, We decided to make the share buyback this time. Thank you very much. Yamaguchi san, thank you very much for the questions. Next question? JPMorgan Securities, Yoshida san, please. I'm Yoshida from JPMorgan Securities. Thank you very much for taking my question. So I have Two questions related to Health Care. One is about the Functional Materials business. So the other day at the presentation, maybe temporarily So the second half, the growth momentum will slow down. I think you have mentioned that. Going to I think at the end of August at the earnings report meeting, Not only ABF, but for instance, the encapsulation or the magnetic material, the contribution that were coming from those type of products, I think you had explained that. What's the applications for this? Is it the type same type of ABF? So maybe is it 30% exposure to the PC like ABF? I'd like to ask you about the applications and what's the current status. The second point is about the biopharma service. So in the second half, I think in the presentation, through the mix improvement, we'll be able to improve the profit. But In today's presentation, it means that in terms of the culture was the main explanation. So the if this going business going to go in the second half, is that incorporated into your outlook? Is the same situation going to continue towards next Clear. Would you give me some explanation about that? Yoshia san, thank you very much. So, Maida san, first, would you kick off the answer? Yusha san, thank you very much for your questions. And I was looking forward to your question actually. Thank you so much. For the Functional Materials and industry wise, I think we are in the we are thinking that we're going to the adjustment stage. But as Fujie has said in the explanation, for 2025, CAGR 18% growth is It's going to be expected. That's a base case scenario. So if you look at higher data, the wider network, A higher speed is required including that. So within a certain period of time, the CAGR 18%, I think that's quite solid. But maybe, currently, I think there is a possibility that we will enter a adjustment phase. So for the applications, basically, these are for the Films for the substrate for the semiconductors, those films will be heat resistant, will be not interesting electronic. Well, it's easy to explain about, but it's very difficult to copy. So that's the reason why we are appreciated. For the magnetic material, I think that's what's going to grow going forward. So higher speed or higher capacity is going to be asked for. I mean that You use a lot of electricity. It will be heating up. Energy consumption wise, that's not good. The PCs and servers will be heated up. For less electricity, the same level of functionality can be offered using these magnetic materials. So that is what we're focusing on in terms of development. So Not only semiconductors for PCs, but for smartphones, functional materials, there are a lot of interesting materials that is included in this segment. So that's all from me about that. In terms of the culture medium, So for the pharmaceutical development phase, so it's a kind of a supporting actor. So for the development of Pharmaceuticals to go well, it's kind of a nutrition. So like By combining amino acid and other nutrients, this will support the research and development. So this cutting edge medical is developing. So the this culture media has been from before, 4. But more high functional media is asked for. So the functions or the accelerating speed, high value add, More and more difficult demands are coming from the customers. So as the medical world becomes more cutting edge And if the customer's demands are becoming more higher, we can differentiate. So this will not be commodity. We will be able to add value. So basically, with looking at the progress of the Pharmaceutical or the Medical business, I think the important thing is that how much of the pipeline that we have for the Cell Cultures at the So, Shirogani san, can you follow-up on that? Thank you very much. So first of all, in terms of the Functional Materials, so in the second half for the next year, Well, maybe this is a very short term look. But in terms of how much of the growth rate are you anticipating? In terms of CAGR, 18%, I think that will be the same. But so in terms of the bottom of the range of the growth rate and So the biopharma service for this business, so the medium is going to grow in the second half. Is that the assumptions? So the functional materials, well, we cannot disclose the details. But compared to first half and second half, maybe the 2nd half, we'll see adjustment. The growth rate, first half will be higher. And in terms of the full year growth, By 2025, CAGR at 18% well, this year compared to that, this year will be higher than this 18%. But the second half at some stage for a couple of months or maybe for the 6 months. Maybe compared to the first half, the momentum will decelerate. There is a possibility of that. So that's the reason why for the full year. Maybe but that said, the higher than 80% growth rate So this year can be achieved. In terms of medium, so food and this is different for food and other businesses. 6. So if there's a clinical trial that the customers have to do or when there is a production that happens, then there's a huge bulk of orders. So It's kind of lumpy, so to speak, in terms of what's how the shipment works. So the first half, there has been some Orders that we have not gotten or on the other hand, there are some orders that we had expected to come in the first half. In the second half, I think basically, we think the orders will be flowing in steadily. But for instance, whether the development stage The clients will be on time or whether they'll be able to get the approval or not, but that is how we look at the demand supply situation for the medium. Understood. Thank you. Thank you. Thank you. Mr. Shisa, thank you. We are about to close the QA session, and we'd like to take one more question before you close the QA. Miura san from Citigroup. This is Miura speaking from Citigroup. Nice to speak to you all. My first question pertains to Well, in Japan and Southeast Asia and the United States, the ANJINOMATO is well known. And you have this strong brand equity. However, even with that company, well, the profit is eroding. And Nestle is in the same situation. I'm not to blame you or anything. Having said that though, even for a Japanese company, depending on each region, even with the price hike, the profit does not Increase. Well, there is a well, positive and negative signs in the food industry. They are the ones that That are favored by the price hike. Even with the brand equity of Genomoto, your profit was down. What was the background? Especially in Asia, usually, you have you enjoy a strong sales and your profit could have grown. However, your profit was down quite significantly. So what is the underlying basis for you to explain the situation? That is my first question. My second question. Well, we've already completed this financial results for the first half, but what are the Business profit driver for the next half year or next year, I'd like to address this question to Fujio san. Miura san, thank you very much for the questions. Well, these are the essence of our business and touches upon the very core of our businesses. And regarding the first question, the top management is highly aware of the financial situation and we are monitoring the situation and closely analyzing the situation currently. And according to our assessment, we increased prices. However, We needed to do more in terms of the price hike. So price hike was not enough or adequate. That was our reflection. But on our part, Short term profit is also important, but mid term scale is important for us to generate keep generating profit. Therefore, we did not want to lose our share because of the extreme price hike. That was a risk We carefully managed depending on the situation in each country, we carefully assess the margin of price hike. And there is a significant time lag. Compared to before, the time lag has been reduced compared to before. But the margin or the price the level of price increase varied from country to country. And that was the issue that was identified by the executives, and we need to carefully monitor the situation. But further price hike We'll be introduced by how much we can and how can we address the slower consumption And how can we stimulate this slowing consumption? Those are the biggest struggles or and there were certain positive impacts that we were able to generate, but We do have issues. We are cognizant of that. And we would like to further our ability to address those remaining issues. Regarding the second question, Going forward, what are the growth drivers for next years and onwards? As we've announced earlier, Overseas seasonings that is expanding or will be expanding, that is our forecast. And we will be able to reach the pre COVID level of top line. The top line is already growing significantly, which could buttress the entire group business. And also for the Electronics Materials, as Mirasan mentioned earlier, CAGR 18% will be achievable and continue to be achieved midterm. And then in August, when we had the business briefing, biopharma service is also another driver to make progress as planned. And as Mike san presented today, the cell media cell culture media And also, he is the expert of ImmunoScience, who heads the ImmunoScience division. In the last 10 years, the business has expanded steadily, both top line as well as bottom line. Especially the quality and supply chain management or trust level from the supply chain is enhancing or increasing. So we don't actually call it or single out as a gross driver the cell media itself, but those will address our entire businesses. That is how we foresee the future. There are headwinds that we have to face, but there are growing areas which will make contribution to the profit increase in the future as expected by the investors and shareholders. We are determined to increase profit. The entire management team is thoroughly implementing ASB, which is exemplified by the slogan SARA measure of ASP. Thank you very much, Frenjie san. So I'd like to confirm a few points. At the end of the day, as in Omdo's seasonings, half of which is already familiar at households, So it is The general public's budget needs to be valued. So that means why there is a significant time lag for you to generate profit. So you have to carefully balance the household budget as well as the level of price increase. Yes, your point is taken. In terms of Thailand, The MSG as well as umami seasonings, these prices are tightly controlled by the government. So not only by our Business decision alone cannot increase price for those seasonings. And also, we have to take consider the household budget of by the consumers. So that is why we'd like to provide a food and health related issue solution. So for the second half, food business will enjoy positive increase of profit. Is that you planned that, but we are ready November 8. In Thailand, price control caps the level of price increase going forward. So in terms of visibility of your plan, is it quite high? Yes, it's highly visible. In that sense, we are implementing measures in order for us to attain what's in the plan. Thank you very much. Thank you very much. So this ends the Q and A session. Firstly, Fujie san is going to say a few words for the ending. Well, thank you very much for attending despite your very busy schedule. We have been able to get a good dialogue through this dialogue. I think there are various findings. And there are things that we realized that these are the things that we are lacking, these are the things that we should accelerate. So I think I hope in terms of the visions that we share and the power of these revisions. I think that supports us. We appreciate your support. And at the same time, I think we should try to Answer your expectations. So the directors, so the Board of Directors, so the management committee And the people working on the ground is going is unified as one team to be able to answer to your expectations. So thank you for your support in advance. This ends today's presentation. Thank you very much for your participation.