My name is Yoshida. Today, I would like to explain about the consolidated financial results for the first quarter of the first fiscal year ending March 31st, 2020, and then Mr. Kainuma, Representative Director, CEO, and COO, will explain about the highlights, including business updates. Please turn to page two. Consolidated net sales for the first quarter totaled JPY 204.425 billion, decrease of 4.6% year-on-year, but an increase of 10% quarter-on-quarter. Operating income was down 74.4% year-on-year and down 47.6% quarter-on-quarter, to a total JPY 3.663 billion. Profit for the period attributable to the owners of the parent decreased 78.9% year-on-year and 74.8% quarter-on-quarter, to a total JPY 2.297 billion. Currency fluctuations brought net sales down an estimated JPY 0.1 billion quarter-on-quarter and up JPY 1 billion year-on-year. It also brought operating income up JPY 0.1 billion quarter-on-quarter and up JPY 0.6 billion year-on-year.
On April 10th, we acquired a 76.2% of controlling interest in U-Shin Ltd., making it our subsidiary. Since we included U-Shin in the scope of consolidation as of that day, we added the U-Shin business to our reporting segments. Please go to the next slide. This is a quarterly trend in net sales, operating income, and operating margin. The bar graph on the left is net sales and the one on the right is operating income, along with a line chart for the operating margin. The operating margin for the first quarter was 1.8% and was down 4.9 percentage points year-over-year and down 2.0 percentage points quarter-over-quarter. Expenses related to retirement benefits and business integration costs of U-Shin totaling approximately JPY 4 billion are accounted for as a special factor in the first quarter.
Otherwise, operating margin would be 3.8% if these expenses were excluded. Please note that figures of the fiscal year ending March 2018 are based on JGAAP and are provided for your reference so that you can look at the past figures. The same applies hereinafter. Moving on to the next slide. This slide shows the difference between the initial forecast as of May and the actual results for net sales and operating income by business segment for the first quarter. While net sales for the machine components business segment were almost on par with the forecast, sales for the Electronic Devices and Components business segment, mainly electronic devices, were lower than forecasted. The Mitsumi business' sales were higher than projected, mainly due to increased shipments of smartphone-related parts. The U-Shin business saw lower-than-expected sales due to a slowdown in automobile production worldwide.
While operating income for the Machine Components Business Segments was lower than projected, due largely to the decline of sales volume of ball bearings for fan motors, operating income for other segments was about the same as projected. Going to the next slide. Let's take a look at the results by segment, starting with the Machine Components Business Segment. On the left is a graph indicating quarterly net sales trends, and on the right is a graph with a bar chart indicating quarterly operating income trends, along with a line chart for operating margins. Net sales for the first quarter rose 1% quarter-on-quarter to a total of JPY 46.1 billion. Ball bearing sales rose 1% quarter-on-quarter to total JPY 29.8 billion. External shipments of ball bearings totaled 179 million units per month on average.
While demand for ball bearings used in fan motors slowed down, it remained solid in the automobile market. Sales of rod ends and fasteners totaling JPY 10 billion were down 1% over the previous quarter. Business for the aircraft industry, especially small and medium-sized aircraft, remained steady. Sales of pivot assemblies increased 4% quarter-on-quarter to reach JPY 6.2 billion. Pivot assemblies steadily contributed to our bottom line as we held on to an 80%-plus market share. Operating income for the quarter totaled JPY 10.7 billion, and operating margin was 23.2%. While this represents a 0.3 percentage point decrease in the operating margin, there was a little quarter-on-quarter change in operating income. Looking at the results by product, we see that profits for ball bearings, rod end fasteners, and pivot assemblies remained almost unchanged quarter-on-quarter. Please go to the next slide.
Now let's take a look at the Electronic Devices and Components segment. Net sales decreased 17% quarter-on-quarter to reach JPY 77.6 billion. By product, motor sales increased 2% quarter-on-quarter to hit JPY 45.8 billion, while electronic devices were down 43% quarter-on-quarter at JPY 22.4 billion. This decline was primarily due to the seasonality of the smartphone market. Sales of Sensing Devices were about the same as the last quarter, at JPY 8.3 billion. The segment recorded an operating loss of JPY 0.6 billion.
Looking at the results by product, we see that operating income for motors and sensing devices remained steady despite an operating loss incurred for Electronic Devices. From this first quarter, the battery module products that were included under the MITSUMI business were transferred to the Electronic Devices and Components business. With this transfer, we have changed our business segment classification between Electronic Devices and Components and MITSUMI business. For your reference, figures of the fiscal year ended March 2019 and before are presented based on the classification before the change. The same applies hereafter. Moving on to the next slide. Let's look at the performance of the MITSUMI business segment. Net sales increased 7% quarter-on-quarter to total of JPY 49.7 billion.
This was a result of an increase in net sales of mechanical components, camera actuators, and semiconductors, despite the decrease in automotive product sales due to the transfer of the battery module products business. Operating income was just about breakeven. Next slide, please. Finally, let's look at the U-Shin business segment, including its pre-merger performance. Net sales totaled JPY 30.7 billion. Operating income hit JPY 1 billion, putting the operating margin at 3.3%. U-Shin was included in the scope of consolidation on April the 10th. For nine days, from April the 1st to the 9th, net sales totaled JPY 4 billion and operating income was breakeven. Next slide, please. The bar graph here shows trends in profit attributable to owners of the parent, while the line graph charts changes in the profit for the period per share. The profit for the period was JPY 2.3 billion. Earnings per share was JPY 5.5.
Next slide, please. This graph shows the quarterly inventory trend. At the end of the first quarter, inventories totaled JPY 174.4 billion, which is JPY 33 billion more than what it was three months ago. U-Shin's inventory of JPY 15.4 billion was included because of its consolidation to the company. Next slide, please. This graph contains a bar chart showing trends in net interest-bearing debt, which is total interest-bearing debt minus cash and cash equivalents, and a line chart indicating free cash flows. At the end of the first quarter, net interest-bearing debt totaled JPY 91.5 billion, which was up JPY 69.8 billion from the previous year. This is mainly attributable to the payment for TOB of U-Shin, JPY 25.1 billion, net interest-bearing debt of U-Shin, JPY 26.4 billion, and the payment of eShip distribution, JPY 4.3 billion, in addition to the payment of dividends and bonuses. Next slide, please.
This is a summary of the forecast for the fiscal year ending March 31st, 2020. While the first quarter results were slightly below our forecast, we expect the net sales in the second quarter to increase due to the seasonality of products. However, in light of market uncertainties caused by trade frictions, currency movements, among other things, we decided not to change the initial first half and full-year forecasts. The exchange rate is assumed to be 110 JPY to a U.S. dollar. Next slide, please. This slide shows the forecast by business segment. We did not make any changes to our initial forecast by business segment either. This is all for my presentation. Thank you for listening.
This is Kainuma speaking, and I would like to give you some highlights of today's presentation or the results.
Looking at the overall economic situation, we are seeing a slowdown in the macroeconomic situation, and I think we are thinking that this will continue longer than initially expected. Mainly in the Electronic Devices and Components in MITSUMI business, I think we are expecting a huge recovery from second quarter onwards. Actually, two days before, the sales that was closing for July, it was more than JPY 89 billion. Last year, we have U-Shin is not included. July was JPY 70 billion, so U-Shin is about JPY 11 billion in sales. Even excluding U-Shin's business, it's about JPY 8 billion more. Even under this condition, we have seen an increase of sales by JPY 8 billion. Maybe we feel that we have hit the bottom, but we can't be too optimistic. I think we should be careful about observing about the future outlook.
In terms of the machine components for the aircraft business, it is still very steady. Against the plan, we have been able to increase the profit.
As I said previously, the ball bearings, that is among all of the products, this is the most, I think reflects the economic trend of the market overall because we have a high share. Currently, ball bearings, I think is weaker than projected. That is currently the fact that we're looking at. For the Electronic Devices and Components B2B business, overall, because of this, there's impact from the U.S.-China trade issue, but we have a diversified portfolio. In terms of risk diversification, I think we have been able to do so as initially planned. For the second quarter, these products, I think support our overall performance. You see, which has been consolidated from this year, the worldwide automotive market has slowed down. It's affected by this. China has seen a 20% sales volume go down. Europe, I think the situation is not that bright.
That said, with this using European business through operational improvement, we have supported that. That in terms of the quality improvement in Europe, has been able to be conducted in a very speedy manner. Just the other day, a certain major automotive maker has said that this is excellent. They said they never expected that the quality would be improved in this short period of time. We were praised for that improvement. The overall automotive market outlook, I think this is uncontrollable from our side, but using performance improvement or the quality improvement, this is going forward as planned. I think that for that point, I can report to you. For the other topics, it is just as shown here. Ball bearings, I think what is going down is the fan for the fan motor for the data centers, that is.
The drop in this area is substantial. The automobile, compared to the first quarter of last year, it has slightly increased, basically flat. That is how it is trending currently. This fan motors for data center applications and for the home appliance business, it has slowed down a bit. Maybe that is one source of a headache for us. In the previous business results, we have said that in the following 10 years, we want to target a sales of JPY 2.5 trillion, out of which JPY 500 billion to JPY 800 billion is going to be conducted through M&A. The growth of the JPY 500 billion-JPY 800 billion is going to be M&A. I think based on this announcement, a lot of companies or businesses has approached us. That's the situation. I can't go into detail currently.
In terms of the share buybacks, this is one major reason that we cannot conduct the share buybacks in a timely manner. In terms of share buybacks, we have conducted no share buybacks. That ends my presentation. Thank you.
We would like to begin Q&A session. The first question is from Mr. Takayama of Goldman Sachs. Please begin.
Thank you for this opportunity. Thank you. My first question is as follows about bearings April to June and July to September, you gave us external sales numbers. Could you share with us the forecast for sales and July, September onwards, the timing of bottoming out? What is your projection? I think in the past you shared with us the projection made by salespeople. What kind of a slope will be there? That is my first question.
I, Yoshida, would like to share with you the numbers, and then with regards to the second half of the question, Kainuma will respond. Please give us a moment. April to June, external sales, first quarter average, JPY 179 million, and the second quarter average is JPY 180 million. This is the projection. July actual, JPY 183 million, which is slightly above the second quarter average projection. Internal sales, Q1 average, JPY 65 million, Q2, JPY 65 million as well. External and internal combined, Q1, JPY 244 million, and Q2, JPY 245 million. That is the projection. Next, Kainuma will respond. When the situation will start to pick up, our initial projection is that things will pick up by starting in July. That was our initial projection. Having said that, however, after that, many things happened
The Chinese economy is not picking up, and the data center investment is not recovering from July, so things are pushed back a little bit. 5G, so new technologies, we know what kinds of new technologies will emerge going forward. There may be some time lag, but in the second half of this year, probably, things will recover. Bearings, take, for example. The customers are holding inventories to some extent, and therefore, unless the inventories are consumed to some level, we cannot expect a full-fledged recovery.
I see. Understood. My second question is about the U-Shin. The page four of the slide. The sales were below JPY 5.8 billion. However, the profit was in line with the projection and the reasons for that. The July to September, the automotive will continue to have difficult time, but faster than expectation, the internal efforts, such as cost reduction, is being effective. Is that the reason why your profit was in line with the projection?
First of all, about the numbers, the breakdown of the numbers, I would like to explain. The sales, there were positives and negatives, we were able to hit the not so bad number. The Q1 operating profit, we had a conservative view to begin with. The special factors, I think I reported at the outset, the JPY 4 billion, that includes the U-Shin integration-related expenses of JPY 300 million or almost JPY 400 million. That, almost half of that occurred on U-Shin's side, the Thailand fraudulent accounting, so on and so forth. We hired professionals in order to work on those problems. Excluding those factors, we had slight increase in Q1 organic number.
Going to the automotive business, I think you know more than myself. The China automotive volume, sales volume is going down. The type of products that U-Shin make, like for instance, you have four door handles, so you have the four door handles for one unit. If the sales volume goes down, their business will go down. For the ball bearings, because there's a lot of electrification happening in the vehicles, so even if you see a decline in the volume, we'll be able to maintain the sale volume for the ball bearings. Even if it's automotive product, there's a difference. U-Shin, more than expected, their business is going down for the automotive area. That said, there are model changes. There are some decline due to these model changes. I think we have to look at the situation carefully.
In any case, this is the first year that we are being engaged with the U-Shin business. If you look at the past trend, from going past August and September, the volume tends to go up after August to September, and I think that has been the past trend for the business. Whether this is going to go as planned, it's very difficult to say from this point, from now that is, but we will look and observe the situation. This is confirmation. In terms of sales, the environment is not that good, but the bottom line, the profit, you have been looking this in a conservative manner.
The bottom line, even if the top line goes down, I'm talking about U-Shin, you'll be able to secure the bottom line. Is that the correct way to understand? Because the sales is tough for the profit of U-Shin, going forward, is it going to be tough? What is the nuance?
From the April through June, I think basically, we have been conservative, and even if the sales goes down, I think we'll be able to secure the bottom line. Going forward, so we are assuming that the same level of profit is going to be generated this year, and at the same time, including some improvement that we are going to implement, that will be affected. In terms of the same number of units and the same level of profit is what the intention, but if that goes down, if that base goes down, there is maybe we're going to see a lower profit level.
Lastly, I would like to ask you about the backlight ramp up for this July to September. I don't think there are no major model changes compared to last year. Maybe that will have a more contribution to the profit. For the backlight business, are there any changes in terms of your outlook?
In terms of the launch, it will be the last month from the first quarter, and we have been able to smoothly ramp up this business. From our point of view, currently, we have been able to smoothly ramp up this business against initial forecast. There is no major deviation from that. Understood. The first quarter, in terms of Electronic Devices and Components business, in terms of the sales outlook, you won't be too concerned? Well, because I think the first quarter outlook was less than we expected, we were anticipating for the older models. For the end of the first quarter to the second quarter, it's not the case that for the new models, we have seen any changes there. Thank you very much.
Thank you. Let's move on to the next question. Morgan Stanley MUFG. Mr. Sato, please.
This is Sato. Thank you for this opportunity.
Thank you very much. I have two questions. If possible, the April, May, June, and July ball bearing external sales and internal sales numbers, please give me. In addition to that, ball bearings, the transit inventories, you say you have a lot of them. When do you think such transit inventories will be consumed?
I, Yoshida, would like to give you numbers. April, May, and June, external and internal sales. The unit is million. JPY 187, this is April. JPY 179, JPY 172, and Q1 average is JPY 179. Internal sales, JPY 65, JPY 66, JPY 64. Average, JPY 64. July, what about July? July, external, JPY 183 and JPY 176, and JPY 182 is the September number. JPY 64, JPY 65, and JPY 64 are the internal sales numbers.
Thank you. Inventories, the consumption, when is it going to be?
Probably it will be pushed back as well. Initially, we thought it would be the second half of the year. Probably after the end of the summer, the trend is May, as you heard, the external sales, JPY 178 million and JPY 172 million, or July is JPY 183 million. August and September, if this trend continues, probably a recovery is starting. I think I can say that. At this point in time, it's difficult to say. Last month and this month, 11 million pieces by increase in bearings we sell.
Thank you. My second question is, from Q2, electronics and Mitsumi are to make a great recovery. I think I understand that. The full-year plan, the weight is in the second half rather than the first half in terms of the profit. At this point in time, to what extent the recovery in the second half is visible?
Well, I am not a fortune teller or gods, our initial forecast is in the first half, due to various factors, including a trade war, the macroeconomic situation will not be good. In the second half, things will start to improve, but gradually. The main scenario remains the same. After the midterm election, things will start to progress once again. That is what we think. All companies seem to be damaged, according to the press report I read every day. If the current trend persists, or I think it's still premature to judge whether or not the current trend is to continue. Looking at your projection, the electronics and Mitsumi, plus U-Shin in the second half, the huge improvement will be brought about. At this point in time, you do not think you need to change that projection. That is right.
The new game consoles, how things will turn out for them at this point in time, I think it's still premature to make a solid judgment. After the products are released in the market, we will see actual reactions. The new smartphones, the market reactions for the new models, we don't know at this point in time. Therefore, pricing strategies and so on and so forth, we need to look at in order to make a solid judgment.
Understood. Thank you very much.
Let's go to the next question. Nomura Securities, Akizuki-san. Mr. Akizuki, please.
Hello, this is Akizuki. First of all, with the ball bearings production volume for the April to June, would you please give me the number and the outlook for the July to September quarter? By application, we always talk about the sales trend and the quarter-on-quarter, year-over-year trend. Can you give me that?
In terms of production for ball bearings, from April, 254 million, 258, 253 million, 255 million on average for the first quarter. 253 for July, 233 for August, 240 for September, 242 average for the second quarter. That's the production for the ball bearings. Please hold on. Next is for the ball bearings. First quarter, can I refer to the first quarter? Yes. First quarter by application, automotive 19, aircraft 35, home appliance 4, OA 5, DC related products 2, peripheral products 2, motors 13, amusement 1, others 21.
This is percentage that I'm talking about. Quarter-on-quarter and year-over-year, is that what you asked? Maybe a year-over-year would be better, maybe. Year-over-year. Year-over-year, automotive +1%, aircraft +12%, home appliance ±0%, OA +4%, PC peripheral +5%, motors -19%, amusement +0%, others ±0%. Motors is dropping. That is the fan motor that you have referred to? Yes. In terms of the production compared to the sales, I think the production is more than the sales. I think this was the same from January to March quarter. I think at that quarter, you said that there was the lack of inventory. To smooth out the inventory, I think basically you produced intentionally. April to June, the production is more than the sales.
Is that intentional, or you are assuming that from July onwards, the sales assuming they will pick up, you didn't reduce the production? Can you explain the background of this?
Well, production and sales volume, maybe you are referring to the production is not going down in line with the sales, but I think this is a margin of error level of numbers that we're talking about. There's no reason behind this specifically. It's not like a situation that you have to reduce the production to reduce inventory? No, no. Basically, the inventory is as we have anticipated. I think what we are saying is that we should not try to reduce the inventory. Another point is that on the Mitsumi business, the actuator business, I would like to ask you a question about that. For the first quarter, I think basically this was good.
The new production has been launched. In terms of the profit, it has improved. Is that the right direction? The second quarter, I think there will be new products that are going to be ramping up in the major customer. I would like to ask about the outlook of the Mitsumi business, actuator business, that is. For the April to June quarter, initially, so in the Chinese smartphone market, we were expecting a big business opportunity. Because of this United States and China trade friction, we have been affected. On the middle of the first quarter, I think there has been some adjustments. Whether it has been good or bad, it was not that as good as we have expected. I think that is the actual results for the first quarter.
In terms of the, I think, second quarter and onward, in the North American customers production, we are just starting that. We do not think that there's any issue here.
Understood. Thank you. That's all from me.
Next question is from Mr. Goto of Mizuho Securities. Please begin.
Can you hear me?
Yes. Please begin.
Thank you for this opportunity. Roughly speaking, next year's sales, how do you plan to grow next year's sales? That is my question.
You talked about midterm outlook, once again, at this point in time, top line for next year, what is your outlook in a qualitative way by segment, if you can share with us the information? That is one thing. The second question is, you said that the current situation doesn't allow you to carry out the share buybacks, but mergers and acquisitions, you're thinking about the mergers and acquisitions for this year and next year. What is the thinking to confirm your stance?
Next year's picture that we are drawing, first of all, economy. We expect economy to recover. Machined products, external sales will exceed JPY 200 million, and aircraft demand shall be robust, remain robust. The machined products as a cash cow, just like last year, it will be strong again. Motors, not just the fan motors, but the demands for various products are going down, and the volumes are going down. We have secured sales for application to automotive. Next year, we will get them, too. Electronic products, the profitability of the Motors is likely to recover. Backlights, as I get questions every year, according to our scenario, it will not disappear. According to the press report, the customers will be supporting LCD. This type of picture remains the same.
In addition, thanks to stealth products, we can solidify growth for next year. That is what we think. Comprehensive or integration activities that we have been conducting. Next year, we shall be able to deploy new rounds of activities. Your second question about the share buybacks. It's as stated here. Frankly, as it reached JPY 1 trillion, we would like to rest for a while. That's what I said in May, but the people don't allow us to take a break. We have been approached by many. At a certain stage, because of the legal requirements, we cannot touch our shares, and therefore, at this point in time, we cannot buy back shares. Please understand it that way, because I cannot give you any more information than that at this point.
Okay. I would like to talk about the future possibility, if there's any progress. In terms of the resources proceeding with the PMI, would that be a bottleneck? Mr. Kainuma will be involved, and I think basically very much involved by yourself in terms of PMI. The U.S. and European operation, I think basically you are spending a lot of resources. That is what at least I am assuming. In this kind of situation, for this year or the first half of next fiscal year, is it practically possible to have new types of initiatives?
Yes, it's possible, because this is just as we observed. In a certain area, we just do not have any resources. For instance, there are concerns that won't be able to have resources for PMI, but for other areas, we have a certain number of resources. What we are focusing on in terms of the area, this is an area that we think that we'll be able to allocate resources. We are focusing on that specific business area. I think that's the way to understand that. I will not go into details.
When you say this area, it's the business area, application area?
That's your implication area. That's the business area that I'm talking about. If you look at the current business portfolio, within our business portfolio, where we can have some capacity for resources. In some business areas, we don't have enough resources. There's a difference in terms of the available resources. Right now, in terms of the business areas that we think that we have more or less capacity for resources, this is an area that we are conducting various deliberations.
Understood. Thank you very much.
Thank you.
Let's go to the next question. Hirata-san from UBS Securities.
This is Hirata from UBS Securities. I will talk about the Mitsumi and the machine components. One question is for the Mitsumi business. This is a simple question. In this year's plan, this new product, this is the machine business, is this included? In terms of the production site, there is some media reporting that you're going to transfer the production from China to Vietnam. I would like to confirm about your stance about the production sites. It is very difficult to say specifically about this thing, and we haven't mentioned about this specifically. Towards the customers, we want to fully support our customers. That includes the old models and new models. We are going to go forward under that concept.
In terms of production site, in newspapers, I think reporting has been conducted that we are going to be producing in Vietnam. As we have been saying from before, Cambodia, we have a big production site in Cambodia. Basically, we want to utilize the Cambodian production site, and we're discussing this with the customers. Just to add up, in Cambodia, there are various inquiries that are coming for Cambodia. We do not want to use up that capacity by transferring our internal production capacity. It will not be a positive, just placing something from one place to another. We want to use the Cambodian site so that it will have a positive impact on our sales. Thank you. Just let me confirm. Conventional products and new products for the customers, you say that you want to take care of that.
That is already reflected in your initial assumptions.
Yes.
My second question is about the profit for the machine components is JPY 51 billion. It seems that up quite high, but for the ball bearings, they have been doing productivity improvement activities. The volume is stable. I think maybe the cost is going down because of the stability. You are putting priority and utilizing the low-cost production area, maybe rearranging the lines. What is your initiative for the second quarter onwards, and what type of contribution are you expecting through this?
At the beginning of this fiscal year, what I have said that in terms of the putting priority, we want to have a full utilization of where the production cost is lower. In terms of overtime, I said we want to reduce that as much as possible, and that is our policy.
It's not the case that all the production sites have changed. It's not the case. There are a lot of things that we still have to do. By the second half of this year, I think this transition will be completed. That's what I have heard. For the second half, the effect will start to show up?
Yes. Understood. Thank you.
Thank you. Let's move on to the next question. Mitsubishi UFJ Morgan Stanley, Mr. Uchino.
This is Uchino. Thank you for this opportunity. Thank you. I have two questions as well. The first one, the first quarter, Mitsumi actuator business. China. The business opportunities have been delayed. Could you elaborate on that? The Q2 onwards, what is your outlook for China? That is my first question.
I would like to respond. The actuators for China, according to our forecast, it should be doing great, but as I said in May, due to U.S.-China trade war is intensifying again. It's becoming more aggressive. The numbers we expected were not realized. Initially, Q1, we thought would improve. That was our forecast. Actually, the numbers did not turn out according to our expectation. Pop-up motors for camera is in the same situation. Now, the demand is coming back in August and September. Probably, volumes will increase. In the latter half of Q2, we will probably see a recovery in volume.
Thank you. My second question is a follow-up question to the other person. The production sites had to be transferred due to a U.S.-China trade war because of this sector, and you have even more expectations for Cambodia. Is it going to be realized within this year? The fourth round may trigger this issue of production sites. Actions regarding this year, if you could share with me. People are not completely believe in it. Some companies have started to transfer production sites, but some others are not yet worried to that extent, and we are getting various soundings. First come, first served. Instead of just grabbing any opportunity that is presented in front of us, because we have secured a space from many years ago, we would like to use it effectively instead of grabbing and jumping on any opportunity.
At this point in time, I cannot say for sure that something like this will be installed in this month, something like that. Transfer of a production site is becoming a reality. I think you are formulating a plan at this point, but if things become even more aggressive, and that may create a positive impact. Am I right? At this point in time, I cannot say yes or no, but the sense of speed, a bit later, probably, we will be required to be even more agile. Thank you.
This ends the Q&A session. This brings us at the end to this telephone conference. Thank you very much for your participation.