Dear all, thank you very much for joining Nidec's conference call. I'm Yoichiori Kasas, General Manager, Keota Branch of Mitsubishi UFJ Morgan Stanley Securities. As we kick off the conference, I'd like to ask you to make sure all the materials are ready in front of you. If not, please download the files on Nidec's homepage right now. Please note, this call is being recorded and the conference materials will be posted on the company's homepage for the coming week for investors and analysts who are not able to join today's call.
Now I would like to introduce today's attendees from Nidec Corporation. Mr. Jun Seki, Representative Director, President and Chief Operating Officer and Mr. Akira?
And
Mr. Akira Sato, First Senior Vice President and Chief Performance Officer. Good evening. First, Mr. Sato will make a presentation.
After his presentation, we will move on to a Q and A session and Mr. Seki and Mr. Sato will answer your questions. Mr. Sato now presents Nidec's Q4 fiscal year twenty twenty results, future outlook and management strategy.
Mr. Sato, please go ahead. Thank you
very much. Good day, everyone. Welcome to today's conference call. My name is Akira Sato, Chief Performance Officer of Nidec. Today, Jun Seki and myself will be your main speakers and answer your questions.
And joining us also is Mr. Masahiro Nagayasu, General Manager of Nidec IR team. For the forward looking statement, please see Slide two, our view of our presentation material for details. Now I will review key figures. Please see Slide three for the fiscal year twenty twenty full year results.
As shown on Slide four, twelve months net sales stood at record high around JPY 3,618,100,000,000.0, 5 point 4 percent higher year on year. The operating profit for the corresponding period increased 47.4% year on year to 160,000,000,000 yen The March operating profit ratio hit 10.3% due to enhanced profitability through the PR4 program implemented since the start of fiscal year twenty twenty and the sales recovery. And double digit operating profit ratio is successfully maintained for three consecutive quarters. Profit attributable to owners of the parent for the full year increased 108.7% year on year to 122,000,000,000. On Slide five and six, you have step chart showing the net sales and operating profit year on year and quarter on quarter, respectively, by product group groups with exchange rate effect eliminations and structural reform expenses.
As you see Slide five, despite the decline in exchange rate fluctuation, all of the business segments made an increase in net sales year on year. And for the operating profit as well, the decline in exchange rate and automotive have been covered by the remaining businesses business segments. Thus, the significant year on year increase of operating profit has been achieved. Slide number please see Slide number nine. For the fiscal year twenty twenty one forecast, we are aiming for net sales of JPY 1,000,000,000,000 and JPY 700,000,000,000, operating profit of JPY 180,000,000,000 and operating profit ratio of 10.6%.
Please see Slide 11. The net sales target of the fiscal year twenty twenty, which was the final year of our midterm plan called Vision 2020, has been expected to reach JPY 3,000,000,000. However, it was not achieved due to the Chinese economic slowdown followed by COVID-nineteen that happened during the period. We will continue to challenge this 3,000,000,000 target in fiscal year twenty twenty two. Please see Slide 12.
Due to the net sales recovery and the contributions from the RRPR4 program, the quarterly operating profit ratio is on its way to steady improvement after forming the bottom in the March quarter of fiscal year twenty nineteen and has achieved double digit operating profit ratio for three consecutive quarters. Please see Slide 13. In order to overcome the rapid shrinkage of the Harvist line motor shipments, our small precision motor division is implementing business portfolio transformation. As you see Slide 14, the R and D function has been reorganized since the start of fiscal year twenty nineteen to create new businesses and grow further. As you also see Slide 15, we are starting to focus on the launch of mass production in new business areas such as mobility, including mini electric vehicles, electric motorcycle, electric scooters, electric assisted bicycles and so on for our midterm growth.
Slide 17. In order to prepare for rapid increase in demand, we are currently laying the groundwork for EX production of 2,500,000 units in fiscal year twenty twenty five and ten million units in fiscal year two thousand and thirty. On the financial side, following the yen denominated green bonds issued in November 2019, the euro denominated green bonds were also issued last month to fund this production plan. Please see Slide 18. Two new models have been added to the EVs using our E Axos compared to the previous quarter.
And cumulative volume has reached almost 130,000. As you see Slide 19, the new EV model called ION Y, which was launched by a Chinese company called GSE ION NE has adopted Nidex NI-100EX, which is our first one hundred kilowatt e axle. We started mass production of in November 2020. Please see Slide number 20. As green transformation is accelerating in automotive industry, various new newcomers are starting development of EV platform related products.
Midek is leading the EV era as a company who triggers creative disruption and goes beyond the industry tradition. Please see Slide 23. In Europe, where environmental regulations and major countries' automobile CO2 emission regulations are becoming increasingly sleeker. Demand is expanding for automotive motors and related products and for high efficiency brushless DC motors for home appliance businesses. Under such circumstances, in order to build an efficient system to supply those products in Europe, we have decided to open new factories in service to consolidate the Nidec Group's production activities in East European region so that our automotive division and group companies will be able to launch multiple assets in the future.
Our One Nidex multiple businesses will be operated at the same site to seek synergies by sharing the same production infrastructure and back office. The new business basis will engage in supplying products to the European market while looking to design and develop products locally in Serbia, which is currently abundant in people in the field of science and engineering who are fluent in English. In the past, we established an economic development zone in the city of Pingfu, China for multiple businesses, and the site is now home to 12 such companies that develop, produce and sell our products, enhancing our presence in Chinese market. Now in Europe, as a part of our growth strategy based on synergies within Media Group, we are ready to utilize our new business basis in Serbia as the core half of our European businesses. Please see Slide 24.
We entered into a stock purchase agreement to acquire the shares of Mitsubishi Heavy Industries machine tool. The acquisition of machine tool business is very much useful in mutually complementing with our existing businesses. Lidec has been actively engaged in manufacture sales and associates associated with reduction gears and press machines through our subsidiary called Nidec Shimpa. After completion of this acquisition, Mitsubishi Heavy Industries machine tool will become Nidec Shimbo's third main business. Furthermore, we expect to utilize Mitsubishi Heavy Industry Machine Tools technology for our future in house production plan.
As we aim to expand the sales of E Axle, which is module consisting of a motor and inverter and gear. It is crucial for us to strengthen manufacturing capabilities of gears. In this regard, this latest stock acquisition will serve other important steps to help us secure highly skilled personnel and their expertise for our E Axle strategy. Please see Slide 25. We have clarified new corporate philosophies in order that all the employees share NIDAC Group's mission, vision and its direction.
In accordance with the new corporate philosophies, we will make a strong step forward for the fiftieth anniversary of the Harmony in 2023. Please see Slide 26. We are currently undergoing a partner system reform in preparation for net sales of 10,000,000,000,000 in fiscal year two thousand and thirty. We will aim to become a company that is respected and admired as a group of talented people through MERD system. Please see Slide 27.
We have identified ESG materiality and classified it into five categories that are environment, quality and technology, human resources, supply chain and corporate governance. And into the team action plan, we will enhance the possibility of sustainable development of the business by incorporating ESG materiality into mid- to long term goals. Lastly, on behalf of the entire management team, we would like to thank our customers, partners, suppliers for their support and commitment as well as our shareholders. At this time, we would like to open up the call for all your questions. Thank you for all your attention.
Thank you very much, Mr. Sato. Now we would like to turn to the Q and A session. Mr. Seiki and Mr.
Sato will be briefed to answer your question. Today's question and answer session will be conducted electronically. Electronically. To ask are now open for questions from the participants. Okay.
Our first question today is from James Parsons of ARMA Capital. James, please go ahead.
Thank you very much. Could I ask a couple, if I may? The first one is very simple. Your R and D spend last year, I think you were targeting expecting to spend €85,000,000,000 You actually only spent 67,300,000,000.0 I think also the capital spending you made last year, 89,000,000,000, was rather blurred than your plan. I know this year you're expecting to spend more.
Could you just comment on that please?
Yes. First of all, R and D, it has been down to that level you mentioned, mainly due to the more efficient R and D activities. For instance, in European region, we have reorganized the R and D activities into into one. And also, we utilize a kind of shared service activities. And also the some R and D activities such as testing that is we are testing inside of our R and D department rather than the outsourcing to the a testing company.
With those measures to reduce R and D costs, that the total expenditure for R and D has been decreased. And capital expenditure, as you see, that's significantly down to less than 100,000,000,000 in fiscal year twenty twenty, mainly due to, of course, some delay to install the machine. But our main biggest portion is price down of the machine. Market is very soft. That's why we were able to get to kind of lower price when we procure the machine.
That's kind of my point. Maybe I'll answer to your question. Is it fine?
Thank you, that's Siva. And can I ask a separate question, please? I wonder, is it possible for you to comment on the current status of orders and new orders that you may have received looking at a number of years for your E Axles and traction motors. So if you have figures you can share with us of, for example, cumulative orders by a certain year or things like this, this would be very helpful.
Okay. This is Jun Seki. Thank you for your questions. Let me introduce several members. First, we always will be having ordering bodies and possible order high possibility ordering volume in 2025.
Our target is $2,500,000 Actually, what we receiving and high possibility of receipt is already reaching $2,800,000 with compression ratio 70%. So if we use real number customer giving us is already exceeding five exceeding three years. That's a statement. So time by time it increases. We don't change our number as 2,500,000.
The reason why is actually current order volume from customer looks too optimistic. So like 2020 results showing much far lower than what we received. So of course, current sales situation and the sales situation in 2025 is very different, we believe. Current sales is so shy because their vehicle prices is very high. And year by year, four years from now, we are 100% sure it's going down.
Thanks for batteries, thanks for our components and also lots of customers start to compromise the auto message that makes battery smaller such as such. So therefore, volume reliability in '25 is not like a current, but we still trying to be more conservative side. That's why we didn't change $2,500,000 But once we see more reliability of their volumes, we shift to higher. Once
we
shift higher volume in 2025, of course, we have to change the target in 02/1930. That's first number. And second number, last time we introduced orderings or like RFQ number in one quarter, it's still increasing. And then customer decision becoming longer and longer. So what we have in our hand, project customer request us to quote and or we already quoted and then waiting for their conclusion is 65.
We have 65 programs in our hands. So time by time it's increasing. And then information three, this is actually not number, probably natural questions from where we are having those orders. Majority are coming from Chinese automotive and European automotives together with European Tier one suppliers. So roughly 60% of those volume are supplying volume of our traction motors and maybe 30%, forty % is motor alone.
So those are combination, but all are motor for EV or plug in hybrid. So those are situations. Am I replying you enough information, David?
Thank you. That's great. Could you just repeat the first one? I couldn't quite catch some of numbers. You mentioned the $2,500,000 targets.
You're already at $2.8 Then you gave a couple of other figures on which I'm afraid I couldn't catch.
Can you I do. I do. 2,800,000 with 70% compression ratios. Okay.
Yes. So therefore, let me calculate quickly. Okay. No, I understand. Yes.
So 3,500,000 or something. 3,800,000 or 4,000,000. At this moment, I have to say very optimistic volumes. So that's why we stay in 2.5.
Yes. Right. Excellent. Good. Okay.
Look, thank you very much indeed. That's very kind.
Thank you.
Mr. Basford, thank you very much for your questions. Our next question is from Ramde Nilam of Safe Street Global Advisors. Ramde, please go ahead.
Jin and Sukishen. First of all, congratulations on your upcoming position. I wish you all the best for that. My question is around I mean, just want to follow-up the previous question. You mentioned the mix of traction motors and EXA.
So that is sixtyforty. Can you confirm that?
Yeah. So I'm talking about pure EV and probably hybrid. Therefore, it's purely driven by motor. Yeah. And then I'm not I'm excluding motor for hybrid and micro hybrid.
With that assumption, total number we are receiving is $2,800,000 with compression refills. And then it's roughly, I would say, 70% is traction motor assets, 30% more alone.
Okay. Great. And slightly on a different topic. So I was kind of expecting an impairment in the Precision Motor segment because we have Seagate departure in the last quarter. So I mean can you give us some color on the impairment costs related to this production capacity that is allocated to Seagate in HDD Motor segment?
This is Sattos speaking. This March, we posted the around 1,300,000,000.0 of this structural reforming expenses in spinner motor area. And back in Q3 twenty nineteen, JPY '1 point '9 billion. So total is JPY 3,200,000,000.0 of kind of impairment cost or early retirement package for related to kind of CS business. So and also maybe June, maybe we will post a little bit more for kind of departure of the Chilean business, maybe JPY 2,000,000,000 or something like that.
So total maybe JPY 5,000,000,000 to JPY 6,000,000,000 of impairment cost or restructuring cost will be posted by the budget of our senior business.
Is that Thank you for that. Yes, that should help. And on the similar lines, can you give the profit breakup between the HDD and non HDD and also the price for HDD, I mean, ASP?
So you need the how to drive ASP situation?
Yes. I mean, I want to know the operating profit margin for HDD and non HDD within small precision motors business.
So small precision motor business, the OP margins on the hard disk drive was a for the fourth quarter, that was a 31.3 percent. And the overall margin was 15.82%. Then the rest is we do have something like roughly a 10%.
Is that fine? Yes, yes, that should be fine. And on the ASP side, I can see there is a significant improvement in ASP, yes.
That's right, right? Yeah. So for this quarter, ASP of our spin motor for hard disk drive was something like just a minute, dollars 79.1 I'm sorry sorry, 7.4, which is little bit down from $7.46 in the December.
Okay? Yes.
If I may, can I ask like on Slide 17, which is EXL related investment? So is that including the potential M and As required for vertical integration as well? Or it is excluding any kind of M and As in that particular area?
Yes. This is just R and D cost and also capital expenditure for traction motor business. So we exclude the M and A in this graph.
Yes. Therefore, this is investment when we grow just organic size. Potentially, we may purchase any other companies, but this is not included in this chart yet.
Yeah. Thank you. And probably on the last question for me. Is there I mean, industry, we've been hearing about the chip shortage kind of halting the production for many of these OEMs. So do you have that kind of volume decline from your side?
And what's your expectation around this area in coming quarters?
So this is Joseph speaking. So let me reply. Actually, segment by segment, situation is very different. And then heaviest impact looks like coming into our automotive area. It's nothing strange because it's a huge size and then they're using lots of semiconductors and plastics and then copper and aluminum and steel.
So when once they have some shortage in some area, suddenly, they have to stop the line. So and then automotive, I think their new car demand expectation was around $93,000,000 in this year. I think first at least first quarter looks growing as like only 8,000,000 or less pace, quite slow. If we look at the I think most of those reduction is coming from semiconductor impact. I know semiconductor is number one element, but even semiconductor element is disappear.
We have a plastic element and then steel element as next. So they need recovery from all areas. Then if we if we look at the in North America, it says standard is seventy five days, but I never seen seventy five days. Usually, they have, eighty five to ninety days as average, but current dealer inventory in North America is less forty days. I think it's a thirty nine point two or something.
It's extremely low. I heard that it's record low. So demand is there, just automotive company cannot build. So we call this is a positive time bomb. Once everything set, suddenly they increase production volume.
Now it's a good chance to reconstruct our cost again because sales is low. But we believe it's coming maybe June to July timings at latest. That's what we are seeing. But meanwhile, we have some impact for home appliance and the commercial appliance. But so far, customer demand doesn't show any deterioration.
Actually, it's increasing. And then we are following those increased volumes. The problem is all those supplier is requesting us to increase price. So many are still arguing General impact is 4% to 5%. Of course, we don't absorb we don't approve all of these.
So it's still arguing. But finally, we negotiate with our supplier and our customers and then we need to absorb this increase remaining increase by other cost reductions. That's the situation.
Yes. Thank you. That is very helpful. Yes. Thank you very much.
Thank you.
Okay. Thank you, Mr. Neelam. Before we move on to our next question, please let me repeat that Okay. Our next question is from Mr.
Bradley Schneider. Bradley, please go ahead.
Yes. Hi. Just a quick question on the Mitsubishi Machine Tool acquisition. It looks like the sales figures in your slide there fell pretty dramatically. I assume that's due to pandemic.
I think it was from '40 to '23. So just wondering if there's any other reason for that. And also what should we put in for the coming year for 2021 as a sales expectation? And what margins would you see on that business as well? Thanks.
The mix is heavy. Because of COVID-nineteen and also some kind of a stagnant market in industrial area or postponing the CapEx in any factory. That's why the sales will be down to around JPY 25,000,000,000 per year, maybe this fiscal And maybe backlog or order intake has been increasing at this point. So that maybe fiscal year twenty twenty one annual basis, the sales will be around JPY 30,000,000,000 in fiscal year twenty twenty one. But we are not sure when we can we will be able to close this deal because of antitrust the investigation is going on.
That's why we I'm not sure when at this point. But anyway, annual sales will be around JPY 30,000,000,000 of top line. And maybe profit wise, maybe it's still losing money. And together with increasing the top line, it's going to be breakeven in fiscal year late of fiscal year twenty twenty one. That's current situation.
Thank you. That's very helpful.
Gladly, this is Jun Sekis. And let me add a few more comments. We are expecting this heavy industry machine division to supply many of gear machining equipment to Midec automotive divisions because our goal is 10,000,000 productions in 2020. And then to do that, we need 30 over 30 line over 300,000 capacity per year. So one line capacity 300,000 components per year and then we need 30 of those.
And then we are going to set that around 10 to 12 by '25. And then Mitsubishi Heavy Industry has a significant high technology, but very expensive. That's why they stay very low volumes and not so profitable. And then we are sure once we officially absorb them, we can compress their fixed cost more and then we can make an intensive order to them. And then while we are group, we can show everything very transparently, then they can estimate what they have to change and what they don't have to change.
Usually, fixed portions, don't need change for long life is over 80%. So that makes their R and D cost very low. So I'm showing just maybe 20%, thirty % of our activity, but I'm sure we can make them more revenues because of our demand from music ourselves and then we can make their costs very strong. Just additional comment.
So I understand it sounds like you're mainly buying that to produce the machines you need internally to hit your e axle target. So I guess should we figure that acquisition is more like CapEx and is that maybe why your CapEx budget was lower?
Yes, exactly. Thank you.
Okay, great. Thanks.
Thank you, Mr. Schneider. Let's move on. We take additional questions from Ramsey Elam of State Street. Ramsey, please go ahead.
Yes. Thanks for taking my question. So just to understand, NIDEC has a new business area, in the mobility area, like e bicycle and e scooter and maybe the mini EV. Is that, can you give us some what is the total market scope there or total market size if we have some numbers around it? And what's the scope of Nidec going into that market?
I know it's a significantly very big market, but you give us your strategy to acquire into that market or capturing the business in that market.
Okay, Ram. Let me reply. And then after my reply, it's hard to say if you have any additions, please do. First about compact EVs, we call new EV. We don't know.
To be honest, we don't know yet. But, you know, it it used to be very small, but Shanghai GM URI Hongwan Mini completely breaks it up every year. They have a $4,000 EV, and it's blank, actually. You know, they sold 200,000 EV by two hundred days from their start up sales. So as much.
And then amazing data for those sales is 72% of those buyers are person who was born after 1990. That means most of people passing this is twenty to thirty years old, mostly 20. And then 60% of this buyer are female. You may not be so familiar with this number, but whenever you go, female buyer of vehicle is around 30%. Most of the case, even they drive, but all of that car is husband or father, therefore naturally major owner is majority, but this car is loved by younger girls.
So if we look at their behavior, they love to move their phones and fashions through the Amazon or Baidu. And so they need to spend a lot of money. So they don't want to spend too much money for automotive. But meanwhile, if they use a public transportation like bus and train to go to office, it's danger because of COVID-nineteen. So I think I don't know if they are buying by themselves or their parents is giving money to purchase new cars, but that's right.
And then we already got four more orders from their competitor. So their competitor is going to change what they are building because buyer of this car is very different from current automotive customers. So one much lower. So those parts buyer doesn't move from current vehicle segment. So this is pure additions.
So if this happens, only China, but also India, Latin America, even Africa, potential demand is probably over 200,000,000 addition on top of current vehicle number. This is huge. May not grow so fast, but once it breaks through, it probably grows very, very fast. That's Mr. Nagamori's predicting and me also.
So maybe we don't know. Let's say at least 100,000,000 by 02/1930, that's we have seen. Meanwhile, bike including e bike is I think this is a segment of just replacements from gasoline driven motorbikes to motor driven motorbikes. Because current share of the EV, the CCI is almost zero. I think new bike sales volume annually is around $20,000,000 to $30,000,000 So it's a big potential, particularly in like Indonesia or India.
Emission level from motorbike is much worse than automotive vehicle, four wheeled vehicles. So government is very serious to shift from gasoline driven motorbikes to motor driven motorbikes. I think that but the field is around $20,000,000 to $70,000,000 annually. And then so motor shifted bicycle, This is also booming both high cost country and low cost country. So it's a big potential, but we need more study for this area.
Okay. And then to follow-up on that, so these are the technologies that Nidec already have or you have to invest little amount in this area to further reach the market requirement and also comment on this merchant because it may require new investments around this area?
We clearly have technology. Actually, probably we are better than current players. For example, in China, motor driven motorbike is very standard. Actually in China, probably it's much more than engine driven motorbike, but their quality levels, durability levels, and then, you know, some reliability, I think it's not so high for us, very easy to overtake with the same price. So definitely we have.
And then for mini indie side, at this moment, we are seeing clear preference from Chinese customers, I mean, Chinese OEMs. They want to use local people local made motors. Of course, we can localize, but at least they are saying we are Japan brand, not Chinese brand. So but we are convincing them sooner or later they want to export those. I think there is a market even in Japan.
But customers don't trust Chinese made motors. If you have our motors, probably it's much easier to convince the export customers. So that's communications. So we are going we are very positive to go into this area.
Thank you. That is really helpful. Thank you. Appreciate that. Okay.
Thank you, Mr. Neelam. Next question is from again James Balsford of Alma Capital. James, please go ahead.
Thank you very much. I wonder, could you comment, please, Ekusan, on the well, obviously, the major news today is that you're taking over as Chief Executive Officer from Nagamoristan. And if you could I'd be just interested to hear any other, in practical terms, how decision making may change at the top, what Magamore san's role will be within the company and how that will in practice work. Can you just talk a little bit about that and how big a change that will be going forward to what's been in place over the last year?
Okay. Thank you, James. We have waited before this question. I mean, wonder why we don't receive these questions. It's very natural.
Yes, thank you. Before we run out of time. No. As we repeatedly explained at this place, you know, have a and myself has a very close communication day by day, week by week. And then, of course, from the beginnings, I'm also wanting me to take over senior positions in some days.
Of course, like one year ago, it was impossible for me. I need a long way to understand more deeply for Nidex and employees and strengths and weakness of products and our customers. Then he said, maybe a few years later, if I'm completely settled in our company and then if I show strong leaderships and also relationship with our executives and our employees, he transfer the CEO position to me. That was discussion from the beginning for more than one year. But in March, he started to say he pretty much satisfied.
I'm a little shy to say by myself. This is just to tell you what he said, but he is satisfied with, you know, way of my management. It's very similar to his own. It's, of course, because I'm copying intentionally. Then also outcomes of, like, 2020 financial result and also some reputation from people's management side, employee side.
So I didn't expect that. He said he wants to transfer to me. Yeah. That was in mid March. And since then, we prepared.
I didn't feel comfortable to transfer everything once because employee warnings, shareholder warnings, investor warning, And then we discussed that we should have a very gradual shift. So a straight answer to you, we have some change for DOA, but it's nothing significant. Nagamura san take his decision for all important things. So let's say over US10 million dollars investment are important, but those decided by the combustion still. Number of decision for those are quite few.
Meanwhile, before, even like a 10,000 investment went to him. So day by day, he must made a make a huge decisions. So those come to me, not to him. I take over those delegations. But for the company basis, important decisions, still I asked him to decide.
So from that point, I would say not major change, although I take over CEOs. So he stayed this company as like largest shareholders, founders, and then representative director and chairman and chairman of the BOD. So for all important decisions such as high investment or new area to expand or mid term plans, Naramalisa and myself make two cases. And then but meanwhile, for day by day operations, I used to have only automotives and appliance industry commercial, but from April 1, I'm taking responsibility for Precision Motor Group company as well. So for like a solid work, day by day work, for organic growth side, I take care of that.
But it's a stake for major decisions. And even those day by day communications, some are very important to discuss with him. I keep one on one with him, at least one hour per week, two hours if necessary. And then we don't make any misalignment between Nara Mori and myself. And last, is going to go ahead for this shift is also helped by executive lineups.
I brought many executives which I can rely on and we also hire from outside. So executive lineup is much more mature than one year ago. So that's also made numbers and decision earlier. So this is the status. From now to 02/1930, we're going to grow from around $1,600,000 to $2,000,000 5 million dollars and $10,000,000 And then time by time, if we recreate my response, Navamolition probably shifts more delegation to me, but it's not half of all the sudden, we do this gradually.
That's what
I must explain.
Thank you. That's clear. Is there anything so I can see that I can see the change is more as you say sort of day to day operation at the moment. Are there any other changes that are sort of that you've decided that are happening in six months or three months or a year that's already decided other than what you've just outlined about day to day operational stuff across the company and investment Yes, yes.
Day by day, I don't small decision to go in the commercial. I take care of all of those.
No, I understand.
Other major change.
No, that's very good. And is there anything else that decided because as you mentioned, this is a stage thing. Is there anything that this is what's happening from now. Is there anything that this is planned that's going to change that you're going to take on more responsibilities or he's going to do less in six months' time or a year's time? Anything else that you
That's right. That's right. We intentionally make this point harder because we trust each other. So Mhmm. He believes if any significant thing happens, I definitely report to him and discuss with him, consult with him so he understood.
So we don't have to define it so Korean on this point because of the deep relationship.
Right. Okay. All right. Good. Okay.
Thank you very much for that explanation.
Thank you.
Thank you, Mr. Basford. It seems that we are running out of time and probably we can accommodate just one short more question. And if the senior management of the company welcomes any relevant question. Otherwise, we would like to conclude this call.
Okay. Now there seems to no further question, and we would like to conclude the conference call. I'd like to appreciate for your active participation. Should you have any further questions, please do not hesitate to contact Nidec Corporation or your sales representative at Mitsubishi Evgen Morgan Securities. Thank you very much.
Thank you, everyone. See you next time. Bye bye.