Thank you very much for viewing the Honda Motor Co., Ltd.'s live broadcast of financial results announcement for the second quarter of the fiscal year ending in 2021. My name is Watanabe from Corporate Communications, the moderator for this announcement. First of all, I'd like to introduce the attendees attending today. We have Mr. Seiji Kuraishi, Executive Vice President, Representative Director.
Good to see you, everyone.
We have Mr. Kohei Takeuchi, Senior Managing Director.
Good to see you, everyone as well.
This financial results announcement, with the COVID-19 impact, we have no audience on-site, and this is going to be a live broadcast. Thank you very much for your understanding and cooperation. First of all, we'd like to have Mr. Kuraishi, Executive Vice President, to explain the financial results for this term.
The COVID-19, which spread around the world since the end of the fiscal year ending in March 2020, continues to rage around the globe, even today, bringing serious damages to the economy. In the second quarter of this fiscal year ending in 2021, economic activities have been reopened in many markets, with resulting gradual recovery in demand. In some markets, the second wave of the pandemic has arrived, and the situation remains unpredictable. Honda will continue to be thorough in its actions to prevent infection and proceed to supply products to the market in a timely manner. Now, I would like to present to you the outline of the financial results for the second quarter and the full year forecast for the fiscal year ending in 2021.
Starting with the unit sales of Honda Group cumulative to second quarter of this fiscal year, it was 6,322,000 units for motorcycles, 2,045,000 units for automobiles, and 2,453,000 units for Life Creation business. Next, I would like to explain the situation in each of the main markets. First, to look at the Japan market. The total market is showing a moderate recovery from the impact of the COVID-19 since May. However, due to the last-minute demand before the consumption tax hike in the previous year, the total demand was considerably lower than compared with the same period last year. Honda's unit sales undercut last year's number, but looking at the unit sales by model, N-WGN and new Fit surpassed the sales in the same period last year, meaning a recovery in the second quarter.
N-BOX series are set number one in new car sales for the first half of the fiscal year ending in 2021. Our outlook for the total market demand for the fiscal year ending in 2021 remains unchanged from the previous forecast. It is expected to be lower than previous year. Due to the market slowdown, Honda expects to see lower sales compared to the previous year. In view of the recent sales results, we have revised our forecast upward from the previous forecast. In the U.S. market, the total market demand has been gradually recovering since May due to the phased easing of regulations and economic activities and reopening of the dealer business. Demand was lower than the same period last year due to the decline in the fleet market.
Honda's unit sales were lower than the same period last year, but we are seeing recovery at a better-than-market pace, mainly with CR-V and Civic, and Civic maintained the lead in this segment with its high product features. At the end of September, a new TLX was launched as well. Total market demand for the full year ending in 2021, beginning with the second half of September, COVID-19 cases have been increasing again in number, mainly in the Midwest, so the outlook remains uncertain. The forecast is for lower demand compared to the previous year. Honda expects to see lower year-on-year results in the face of this uncertainty of the market. Looking at China. In addition to the resumption of economic activities, consumption stimulus measures were taken, so the total market exceeded the same period last year.
Honda has favorable sales of models such as Breeze, Vezel, and XR-V, and also in the second quarter, we launched three models, namely Civic Hatchback, Fit, and Envix Hybrid, which actually brought us a better-than-market growth. From July to September, our single month sales results marked record high numbers consecutively for those three months. For calendar year 2020, the total market demand exceeded that of last year from April to September, but as the market took a huge decline due to COVID-19 in January to March, the impact of which could not be fully recovered, so the total market is expected to be lower than last year. Honda, with the launch of new models and are running factories at full capacity to increase supply to the market, is aiming to exceed sales higher than previous year.
We have revised our forecast upward from the previous forecast on the basis of the recent sales situation. Turning to motorcycles. The impact of COVID-19 differs significantly from one region to another. In China and in the U.S., due to the trend of using motorcycles instead of public transport, added to the heightening outdoor leisure demand, the market has almost fully recovered. The other hand, in Asia, the largest market, in addition to the impact of COVID-19, due to the tightening of loan screening criteria in Indonesia, the market contracted in Asia year-on-year. Honda, despite strong sales in China and U.S., and in India and Brazil, we started production in June and it is steadily recovering sales. Still, we saw its sales fall below the same period last year.
The total market demand for the fiscal year ending in 2021, we expect that even though the recovery trend continues in many markets, Indonesia will still see continued decline in personal spending due to the tightening of loans. No prospect for rapid decline, that the market will be lower than the previous year. Honda expects lower sales in Indonesia and some other markets, higher sales in markets including India, Brazil, and the U.S. Our forecast on a global basis is for sales equivalent to the previous forecast. Moving on to the outline of the six-month results for the fiscal year ending in 2021. The first quarter brought us very challenging situation with the impact of COVID-19.
With this environment of living with COVID-19, we have proceeded with solidifying our existing businesses further, and at the same time, we have made a fundamental review of our business activities across all areas to secure a strong, resilient business constitution that support future growth. As a result, a better control of SG&A expenses and cost reduction, those brought us a turnaround from the first quarter, bringing an operating profit of JPY 169.2 billion for the six months. Profit for the period on the review was due to the contribution from profit from investment based on the equity method, it was a JPY 160.0 billion. The unit sales and income statement are as shown on the slide shown here. Moving on to the forecast for the fiscal year ending in 2021.
For unit sales, we have increased our automobile forecast from the previous forecast, considering the favorable sales in China and other markets, and also increased our Life Creation business forecast in view of the strong sales in North America. For operating profit, incorporating the business constitution reinforced in the first half, our estimate is JPY 420.2 billion, an upward revision of JPY 220.0 billion from the previous forecast. Though the future of the market remains uncertain due to the COVID-19, but with our initiatives to curb SG&A expenses and to reduce cost further, Honda will aim to enhance its business characteristics further. Profit before taxes. Due to the increased investment profit share, due to the equity method, are expected to be a JPY 660.0 billion. Once again, the unit sales and income statement are as shown. Next, about the dividend.
Forecast for the full year dividend for the fiscal year ending in 2021 is due to the operating profit and the increased investment profit based on equity method, compared to the previously published forecast, dividend by per share is increased by JPY 24 to JPY 68 per share, and for the end of second quarter, it will be JPY 19 per share. Next, I'd like to hand over the microphone to Mr. Takeuchi, Senior Managing Director, Chief Financial Officer, to present the details of the financial results and forecast.
Thank you. I, Takeuchi, am going to explain. Starting from the FY 2021 second quarter financial results consolidated. Honda Group unit sales of motorcycles increased in Pakistan, Philippines, and Brazil, decreased in Indonesia and India. Our unit sales of automobiles decreased in Japan and Indonesia, at the same time, increase was recorded in China and the U.S. Income statement. Sales revenue. There is an increase in sales revenue in financial services business on one hand, decrease, however, in automobile business and negative effects of FX translation. It resulted at JPY 3,651.3 billion. Operating profit. Although there was a decrease in profit attributable to decreased sales revenue and model mix, operating profit stood at JPY 282.9 billion, due mainly to a decrease in SG&A and cost reduction effects. Next, to explain change in profit before income taxes.
Profit before taxes for the second quarter FY 2021, owing from the total reduction of SG&A and other efforts to cut down on costs, was JPY 345.67 billion, which is up by JPY 56 billion year-on-year. Operating profit, JPY 282.9 billion, up by JPY 62.8 billion. Performance by business segment. Operating profit of motorcycle business was JPY 68.4 billion, and given decrease in cost and benefits and SG&A expenses, but due to these lower sales revenue and model mixes, was JPY 68.4 billion. Change in the overall situation, however, was quite noticeable. Next, turning to financial services, JPY 93.2 billion. Life Creation business and others. Sales fluctuation and term exchanges, so the number that you see here. For others, please note that for aircraft and aircraft engine losses, which are categorized in others, and also in Life Creation business, was JPY 8.1 billion.
Summing up the operating profit for automobiles and the automobile sales portion of the financial services was JPY 214.6 billion. FY 2021 six months profit and losses are shown here. To explain, profit before tax was down by JPY 307.1 billion. Operating profit, because of the cost reduction in SG&A expenses, which was offset by sales revenue decline, was JPY 169.2 billion, down by JPY 30.3 million. Turning to the second quarter, six months total, JPY 57.9 billion. Cash and cash equivalents at the end of the second quarter was JPY 2,626.5 billion. Net cash stood at JPY 1,843.9 billion. To explain about FY 2021 consolidated forecasts. For the Honda Group's unit sales of motorcycles, the same as previously forecast at 14.8 million units. Automobiles, upward revisions for China and Japan means the further increase by 100,000 units at 4.6 million units.
Life Creation business, up by 190,000 units at 5.5 million units. FY2021 consolidated business forecast, as you see here. Changes from the previous fiscal year actuals. Due to the decline in unit sales and also because of the sales mix change and FX negative impact, we had positive benefits coming from the reduced SG&A and other costs. JPY 420 billion operating profit is planned. Now, vis-à-vis the previous forecast made for the full year, increase in unit sales and also the cost reductions such as for SG&A and others, JPY 220 billion upward revision for operating profit. Finally, FY2021 CapEx, depreciation and amortization, and R&D expenditure, as you see here. That completes my explanations to you. Thank you very much.
Thank you. With that, we conclude the FY2021 Q2 results presentation. From this point onward, we are going to receive questions from the members of the media. As we announced to you previously, we are going to receive questions through the Zoom system. We are going to resume at 15:40, 3:40 P.M. Japan time. Thank you. Until then, please wait. We are going to break for a moment.
[Break]
Now, we are going to move on to Q&A. As we announced to you prior to this meeting, we are going to receive questions through the Zoom system. If you have a question, please use the hand icon on the screen. In the interest of time, may I suggest that we limit your questions to two questions per person. If you have a question, please use the hand icon. We'd like to take questions from Reporter Hanada from Nikkei Newspaper. Mr. Hanada, could you turn on your microphone to ask the question, please? Mr. Hanada? Because he is not responding, we'd like to proceed to the next reporter. We'd like to take the next question from Yomiuri Newspaper. Reporter Shimo Sato, please.
This is Shimo Sato from Yomiuri Newspaper. Can you hear us okay?
Yes, we can hear you.
Refer to pages 13 and 16 in the material. For the second quarter sales, among the factors that contribute to the sales, the impact from the COVID-19, how much of an impact was there from COVID-19? If you're looking at the first half of the fiscal year, you have a negative of JPY 488.2 billion. How much of that is due to COVID-19, would you say?
Thank you very much for the question. To answer the first question, this was for the first quarter, I believe. The factors that contribute to the fluctuations in sales, for the second quarter, how much of an impact from COVID-19? The second question was for the first half of the fiscal year, this JPY 488 billion, of that total decline, how much of an impact from COVID-19?
Okay, let me answer that one. Looking at the page 13, I think you're referring to the year-on-year results comparison. If you look at the volume mix, it's about JPY 40 billion minus. This is coming from motorcycle from the year-on-year comparison. This is a consolidated number. This was a 76,000 decline in automobile and then 240,000 decline in motorcycles. If you ask me if that's all coming from COVID-19, that's difficult to say. Most, I believe, is due to the COVID-19. However, if you ask me, is this all the reduction in unit sales, are they coming from COVID? If you look at the total, this is coming from JPY 40 billion decline due to this. If you look at the six-month results, the year-on-year comparison with last year, it's about JPY 500 billion decline.
If you look at the motorcycles, this 2.3 million units and 640,000 units decline in automobiles. Those declines are included in here. As I explained, the results are the same. Of course, there was no COVID last fiscal year, so was it all due to COVID-19? Of course, the factors all mixed in. Does that answer your question?
Yes.
Thank you very much. Let us move on to the next question from Nikkei Newspaper. Mr. Hanada, the floor is now yours.
Thank you very much. Sorry, I'm not being able to ask properly a few moments ago. Please wait. It seems that there's signal interference.
Changes in the business environment is my broad question. So long as the automobile business is concerned, the expected ban on the sales of the gasoline-running automobiles, or in 2015, the target to get rid of the carbon-oriented activities in Japan. What do you think of those expectations at Honda, and also, the U.S. presidential election, how the environmental regulation or the protectionism may change when that's going forward as a result of the presidential election in the States?
Thank you very much. These are two questions. Number one, in Europe and United States, the prohibition to sell gasoline, the vehicles, the running automobiles, and Japan's announcement to get rid of the carbon-oriented business activities in 2050. The second question has to do with the outcome of the U.S. presidential election, how Honda considers that may impact the future, the environmental regulation, or the protectionism. Thank you.
Well, of late, yes, on top of the Prime Minister, Mr. Suga's declaration, the U.S., U.K., or Europe, all across, the conventional gasoline, the operated vehicles are likely to be shifted to the new types of the fuel. The interest is becoming higher and higher towards the electrification of automobiles, among others. At present, Honda's view is that the intent, the reference to the HEV, the vehicles, electrification, or that sort of move for the engine technology, so that our aim is to electrify two-thirds of our global automobile units in 2030. That's for Honda. In all regions, in different regulations, or the penetration of those mandates, there will be what next. Not to mention, the appetite and changes from the customers in the regions. For each and every region, whatever would be characteristic of Honda, that is going to be our point of emphasis.
That means the alliance with GM in the U.S., with the agreement in China. These are the exemplary arrangements. Of course, we regard that the inclusive of the electrification or the promotion of the HEV vehicles, we would like to take into consideration. Our president said, Mr. Hachigo, that we are going to aim for the realization of carbon neutrality by 2050. That means that we have to accelerate further our move towards electrification. Of course, this will sophisticated the energy power units, or the other elements that would need to be enabled will be the areas that we are going to prioritize our resource orientation. To become carbon neutral, everything would have to change. Things that we need to do will be not only on Honda alone, but also together with other members of the community.
Energy-related research activities, we are engaged in rather actively at Honda, that in order to realize our goal of being carbon neutral, we would like to lead the community at large. As to the outcome of the presidential election in the U.S., well, after all, the official result isn't announced yet. The sooner the better to hear the official announcement of the outcome of the presidential election. Of course, the friendly relationship, the relations between the two countries, to be preserved and strengthened that we can continue to provide our proud vehicles into the U.S. At the same time, we will also hear the protectionism may be tightened up. I really do hope that it's not going to hinder our business activities going forward.
Thank you very much. Mr. Hanada, you had the second question, is that correct? If so, please go ahead. Mr. Hanada, with your second question.
That's right. The profitability of automobile business. The reform of the automobile business, what is the progress to date of your working together with GM, and also, the resulting reductions or the results in the Life Creation business?
Okay. GM relationship, and how do we stand, and how we have been able to produce the outcome of that.
Okay, the profitability of automotive business has been foremostly in our mind. Progress with General Motors, as has been announced already, that's basically what I am able to say, only that. Although, we are in discussion with GM from various angles, there's nothing further that I can explain to you right now, right here. In any case, so that we can accelerate the electrification of automobiles, it is my belief that this relationship with GM is quite conducive.
By joining hands with GM, what we have been doing over the years, which is to make investments in the area of the gasoline, the running automobiles. What further utilization of those technologies we would like to consider further, and I believe that we will be able to do so, particularly now that we are working closely with GM. The goal that we have established to reduce emissions, that's something that we are upholding, and because we are together with GM in these activities, we should be able to do more.
Now we have Mr. Inagaki from Asahi Newspaper.
This is Inagaki from The Asahi Newspaper. I hope you can hear us. I have two questions. You said there was a recovery from China and the U.S., for the full year, how are you viewing this? There were some restrictions on the economic activities and production stopped. How do you view that? For the total market and then also your company's results. That's my first question.
Thank you very much. I believe that your questions are, how do you view the recovery in total market demand in the States and the Chinese market for the second quarter, and also you want to hear the analysis of the total market and Honda's results, if this is a reaction after the first quarter. Thank you.
The first quarter was a very challenging situation for all of us. We are seeing a recovery in our second quarter. Of course, there is uncertainty about the second wave of COVID-19 in the second half. We believe that we will have 4.6 million units planned. This is higher than our previous one. The unit sales is growing, focusing on China. We will have only 4% decline in unit sales year-on-year. To look at China first, well, this is where it all started. The impact was huge. However, in the second quarter, now the full sales environment has recovered and also CR-V, MMC, Fit, FMC. The product lineup has been strengthened, marketing activities have been reinforced, we are seeing good visits to the dealers, also we are seeing good sales, that's why it led to good overall sales results.
For the calendar year, because of those new models, new vehicle launches, we hope to see year-on-year better sales results for China. For North America, if you look at North America, well, actually with the easing of the economy, the second quarter is seeing a recovering trend. For the future, assuming that there will be no major changes coming, our forecast is that we will get about 80% compared to last year, so 14 million or so. For the second half of September, we are seeing new cases of COVID-19, so we still cannot really predict the future going forward. However, we will closely be monitoring the situation and take speedy actions together with the dealers. In Honda, the sales is recovering. In September, we've taken some initiatives and incentives, so we saw better results year-on-year, month-on-month.
For the third quarter, we hope to aim for the second half of the year, we hope to see better results compared to last year. Thank you.
If you have a second question, Mr. Inagaki.
Sorry, additional question. The recovery in the States, this is because the people were unable to make purchases because of the activities are restricted, those demand came back. That was the additional question. If we look at the page 13, the cost reduction effect, you say, and then SG&A control, I believe it had good effects, but I'd like to hear more details about it. If you did something like reduced business trips or something like that, I'd like to hear the actual details about what you did.
Talking about the second quarter, the first one is, as you say, because of the lockdown, production was suspended, and so overall, the inventory level was just simply short. We saw a shortage in inventory. Now into the second quarter, we started seeing sales growth. That is one of the factors. However, at the same time, on the other hand, we made some efforts, initiatives in our sales activities. Mentioning, so we've done some incentives. They have over $4,000 incentive, but we provided about $1,800 incentive, so it has been lower. The selling expenses has been reduced, and then that's because we were getting short on inventory, so we did not have to spend that much on incentive. That's one thing. I think I can hand over to Mr. Takeuchi for cutting cost.
For year-on-year, comparing the three month, we had about JPY 3 billion cost reduction additional. This goes back to precious metal and the other raw materials. It's actually going up. This was like JPY 10.6 billion, over JPY 10 billion. This we're comparing three months and three months. We're seeing the cumulative results from the cost reduction. The selling price, differences. We have about JPY 50 billion plus due to the selling price adjustment and the incentive. SG&A, of course, business trips are cut down. One big factor is within the SG&A. In North America, we have major finance operations to sell automobiles, to make it easy for customers to buy automobiles. We have credit losses. Depending on the defaulting, we have to book provisions for allowance for the credit defaulting. That's gotten better.
This is our JPY 17 billion plus. That way, we have been able to reduce cut expenses. This led to a total of JPY 52 billion better results, actually, improvement.
Thank you very much.
Moving on to the next person. From NHK, Mr. Tsuboi, please.
Yes, Tsuboi from NHK. Is it audible?
Yes, we can hear.
Thank you. Just listening to all the discussions and your presentations, once again, let me ask the following. Second quarter recovery, is that in line with your recovery, like in China and United States, and there was the recovery of sales. Was that part of your original expectation? The full-year forecast and the upward revision. Fine, in the United States and Europe, the number of positive cases is on rise once again. I think you used the expression of it being uncertain or opaque or whatnot. What sort of second strategy that would you deploy after all?
Thank you. The first question has to do with the second quarter recovery, whether or not it was part of our expectation or exceeding our expectations. Please, let us respond to that first.
Okay. As of the first quarter, whether or not we were able to have the clear expectation or not, well, frankly speaking, the actual exceeded our expectation. China, towards the end of the first quarter, had three months period, it was getting better. In the United States, we really could not see through how the situation at all. In that respect, I would say that what actually happened in the second quarter for our actual results, exceeded our expectation. Now, the most recent rise in the number of the positive in the patients of the coronavirus, whether or not that is so much that it's starting to affect our business operations negatively. Not so, I'd say. However, it is also true that some of the dealers, though temporarily, shutting down their doors. The temporary closure of the dealer activities.
This would means that they would work against our performance going forward. We have to see what happens.
We also would like to respond to your second question. That is reporter Yokoyama from Toyo Keizai.
Can you hear me okay?
Yes.
Yes, thank you. As announced already, the production results for September, you're seeing higher results compared to last year. Now that your production is coming back and is demand recovering? The inventory situation in North America, you still have a shortage in inventory, or do you have enough in inventory? That's all the things I'd like to ask.
Thank you. For the September production results, is your production ready, is the demand coming back? The second question was the inventory situation in North America. Thank you.
If you look at the September, most recently, for North America, we are back to 90% back to usual. On the other hand, depending on the model, the inventory level is short on some models. We are making some additional production as well. The inventory is like a 52 days worth of inventory. Currently, we are at the standard inventory level to which we are finally coming back to. Depending on the model, it varies, but we are almost back to our standard inventory level.
Thank you. From Automotive News. Mr. Okamura, are you there?
Yes, I am. Okamura from Automotive News. I hope you can hear me.
Yes, we can.
Listening to you, Mr. Kuraishi, you talked about relationship with GM, saying that there's nothing further that you can explain to us today. What sort of expected synergy for cost reductions further, per annum, by how much further? Leaving those and the cost benefits, and they can be diverted into investments in other areas. What sort of the synergy would you expect altogether? North American market is very important for you, and there, with an alliance with someone like GM, your power of control or the authority, I wonder whether you would end up maybe conceding your authority or the power to GM. Is that ever a concern that you have in the North American market?
Again, thank you very much. We received a question relating to the relationship with GM. What would be the expectable synergy in the areas of cost reductions, and how those can be used in other areas. Thereby, because you have the alliance agreement with GM in the North American market, is there any possible concern, or the less power of influence or whatever that you may have?
Okay, as to the cost reduction benefits expectable, what I said was that we signed on to the memorandum, and then what we are doing right now is that we are engaged in discussions as to the contents and the substance within that MOU memorandum. I really cannot say anything more definitive. However, it is for sure that Honda certainly regards that there is going to be the understandable, acceptable benefits to accrue. That's it.
I cannot quote any number per se. Any concern about the public control influence or whatnot, this is the business relationship with not the capital injection. It is not capital participation. It is really on the basis from the operations. We know that what we are not interested and engaged in the North American market, we will not do after all. In that context, I would say that because we are working more and more in the direction of electrification of cars, with GM, may it is a hybrid category of vehicles, that we have the meeting of minds. This will have the real regard that we can come out as a win-win, the beneficiaries from this relationship. Certainly, we have any concern whatsoever that we have to concede on the power of control. Thank you.
Okay, going into the next question. Next reporter. Mr. Mizudori from Daily Automotive News.
Mr. Mizudori from Nikkan Automotive Newspaper.
Yes, we can hear you.
Thank you. I have two questions. First question is concerning the domestic market, where earlier you talked about for Europe and the U.S., you said the growth was better than your estimation. I believe you upped your estimate by 10,000 units. For the second quarter, was the domestic market better than expected? May I continue on to my second question?
Yes.
For the R&D cost, you said you reduced the full-year estimate by JPY 40 billion or so for R&D cost. Would that have an impact on product development? I believe Mr. Hachigo mentioned possibly launching Level Three by the end of the year. If there's any impact, please let me know. Thank you.
Thank you very much for the question. The first question was for Japan domestic market. Total demand and also Honda's situation. That was the first question. The second question's about the R&D cost. For the full year, we reduced it by JPY 40 billion. Would there be any impact from that? Thank you.
Okay. Speaking about the Japanese market, well, we are seeing a recovery from July through September, and then the most recent minivan sales is recovering. Compared to the 630,000 units, now we are upped it by 10,000 units to 640,000 units. Of course the market going forward is still uncertain. However, we would like to keep a close watch on this. For R&D costs, so because of the COVID situation, there is a bit of a delay in development of new models.
On the full year plan, we are still on plan. This JPY 40 billion reduction is triggered by the COVID-19. We have been doing the review of our operations across, including R&D as well. Then some of that timing of development might have been a little bit delayed.
This spans across our automobile, motorcycles, and power equipment. For any future plans, future activities for the seeding for the future, we will still be continuing for the investment for future technology.
Okay. I am sorry, I have to say that the next question is going to be the final question from the Kyodo. Mr. Higashimoto, please. Sorry, Ms. Higashimoto.
Thank you very much. This is Higashimoto from Kyodo. Can you hear me?
Yes.
About U.S. presidential election, just an added question. You said that it is premature to say anything about the future in the U.S. The official results are not out yet. The past four years under President Donald J. Trump, how would you summarize that four-year period? There was a tax cut. For companies who have been really focusing on the U.S. market, there must have been benefits that you enjoyed. What is your review of the past four years under President Trump in the United States?
Okay, the review of the past four years under President Trump.
I don't think it is totally appropriate or that we are in the position of properly answering that big question in the name of one private sector company. I have to refrain from saying anything.
Thank you very much. Ladies and gentlemen, because of the time availability, we were not able to probably undertake all the questions that you may have otherwise. If you have anything further, please address those to Corporate Communications. With that, we would like to close today's time together with you. The presentation materials, please take a look at the words uploaded in our webpage. Thank you very much for your attention and participation. The forum is now closed.