Dear all, thank you very much for joining Nidec's conference call. I'm Yoichi Orikasa, General Manager, Kyoto 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 the 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. Hello, everyone. Mr. Akira. Sorry. Hello, everyone. Jun Seki. Mr. Akira Sato, First Senior Vice President and Chief Performance Officer. Good evening, everyone. First, Mr. Sato will make a presentation. After his presentation, we will move on to a Q&A session, and Mr. Seki and Mr. Sato will answer your questions. Mr. Sato now present Nidec's Q4 fiscal year 2020 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, Mr. Jun Seki and myself will be your main speakers and answer your questions. Joining us also is Mr. Masahiro Nagayasu, General Manager of Nidec's IR team. For the forward-looking statement, please see slide number two of our presentation material for details. Now I will review key figures. Please see slide number three for the fiscal year 2020 full year results. As shown on slide number four, 12 months net sales stood at record high, around JPY 3 trillion and JPY 618.1 billion, or 5.4% higher year-on-year. The operating profit for the corresponding period increased 47.4% year-on-year to JPY 160 billion. The last quarter's operating profit ratio hit 10.3% due to enhanced profitability through the [WPR4] program implemented since the start of fiscal year 2020, and the sales recovery. The 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 JPY 122 billion. On slide number five and six, you have step charts showing the net sales and operating profit year-on-year and quarter-on-quarter respectively by product groups with exchange rate effect eliminations and structural reform expenses. As you see, slide number five, despite the decline in exchange rate fluctuation, all of the business segments made an increase in net sales year-on-year. For the operating profit as well, the decline in exchange rate and automotive have been covered by the remaining business segments. Thus, the significant year-on-year increase of operating profit has been achieved. Please see slide number nine. For the fiscal year 2021 forecast, we are aiming for net sales of JPY 1,700 billion, operating profit of JPY 180 billion, and operating profit ratio of 10.6%. Please see slide number 11. The net sales target of the fiscal year 2020, which was the final year of our midterm plan called Vision 2020, had been expected to reach JPY 3 trillion. It was not achieved due to the Chinese economic slowdown followed by COVID-19, that happened during the period. We will continue to challenge this JPY 3 trillion target in fiscal year 2022. Please see slide number 12. Due to the net sales recovery and the contributions from the [WPR4] program, the quarterly operating profit ratio is on its way to steady improvement after forming the bottom in the March quarter of fiscal year 2019, and has achieved double-digit operating profit ratio for three consecutive quarters. Please see slide number 13. In order to overcome the rapid shrinkage of the hard disk drive motor shipments, our small precision motor division is implementing a business portfolio transformation. As you see slide number 14, the R&D function has been de-organized since the start of fiscal year 2019 to create new businesses and grow further. As you also see slide number 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 goals. Slide number 17. In order to prepare for rapid increase in demand, we are currently laying the groundwork for E-Axle production of 2.5 million units in fiscal year 2025 and 10 million units in fiscal year 2030. 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 number 18. Two new models have been added to the EVs using our E-Axles compared to the previous quarter, and the cumulative volume has reached almost 130,000 units. As you see slide number 19, the new EV model, called Aion Y, which was launched by a Chinese company called GAC Aion NE, has adopted Nidec's Ni100Ex, which is our first 100 kW E-Axle we started mass production of in November of 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. Nidec is leading the EV era as a company who triggers creative disruption and goes beyond the industry tradition. Please see slide number 23. In Europe, where environmental regulations and major countries' automobile CO2 emission regulations are becoming increasingly stricter, 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 to Europe, we have decided to open new factories in Serbia 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 businesses in the future. Our wide Nidec's multiple businesses will be operated at the same site to seek synergies by sharing the same production infrastructure and back office. The new business bases will engage in supplying products to the European market while looking to design and develop products locally in Serbia, which is a country 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 Pinghu, 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 Nidec group, we are ready to utilize our new business bases in Serbia as the core hub of our European businesses. Please see slide number 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. Nidec has been actively engaged in manufacture, sales, and services associated with reduction gears and press machines through our subsidiary called Nidec Shimpo. After completion of this acquisition, Mitsubishi Heavy Industries Machine Tool will become Nidec Shimpo's third main business. Furthermore, we expect to utilize Mitsubishi Heavy Industries Machine Tool's 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, an inverter, and gear, it is crucial for us to strengthen manufacturing capabilities of gears. In this regard, this latest stock acquisition will serve as an important step to help us secure highly skilled personnel and their expertise for our E-Axle strategy. Please see slide number 25. We have clarified new corporate philosophies in order that all the employees share the Nidec Group's mission, vision, and its direction. In accordance with the new corporate philosophies, we will make a strong step forward for the 50th anniversary of the founding in 2023. Please see slide number 26. We are currently undergoing a personal system reform in preparation for net sales of JPY 10 trillion in fiscal year 2030. We will aim to become a company that is respected and admired as a group of talented people through merit system. Please see slide number 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. Into 15 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 your questions. Thank you for all your attention. Thank you very much, Mr. Sato. Now we would like to turn to the Q&A session. Mr. Seki and Mr. Sato will be pleased to answer your questions. Today's question and answer session will be conducted electronically. If you would like to ask a question, please press the star key and one on your touchtone phone. Again, please press star and one if you would like to ask a question. If you would like to cancel your request, please press star and two. We are now open for questions from the participants. Okay. Our first question today is from James Pulsford of Alma Capital. James, please go ahead. Thank you very much. Could I ask a couple, if I may? The first one's very simple. Your R&D spend last year, I think you were expecting to spend JPY 85 billion. You actually only spent JPY 67.3 billion. I think also the CapEx you made last year, JPY 89 billion, was rather lower than your plan. I know this year you're expecting to spend more. Could you just comment on that, please? First of all, R&D, it has been down to that level you mentioned, mainly due to the more efficient R&D activities. For instance, in the European region, we have reorganized the R&D activities into one. We utilize a kind of shared service activities. Some R&D activities such as testing, that is we are testing inside of our R&D department, rather than outsourcing to a testing company. With those measures to reduce R&D costs, the total expenditure for R&D has been decreased. Capital expenditure, as you see, that's significantly down to less than JPY 100 billion in fiscal year 2020, mainly due to, of course, some delay to install other machine. Our main biggest portion is price now of the machine. Market is very soft. We were able to get the lower price when we procure other machine. That's the main point. Maybe I answer to your question. Is it fine? Thank you. That's super. 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 out a number of years for your E-Axles and traction motors? If you have figures you can share with us of, for example, cumulative orders by a certain year or things like this would be very helpful. Thank you very much. Okay. This is Jun Seki. Thank you for your questions. Let me introduce several members. Sorry. Excuse me. First, we always will be following ordering volume and high possibility ordering volume in 2025. Yep. Our target is 2.5 million. Actually, what we receiving and high possibility of receive is already reaching 2.8 million, with compression ratio 70%. If we use real number customer giving us, it's already exceeding, far exceeding 3 million. That's a statement. Time by time, it's increasing. We don't change our number as 2.5 million. The reason why is actually current order volume from customer looks too optimistic. Like 2020 results showing much far lower than what we received. Of course, current sales situation and sales situation in 2025 is very different, we believe. Current sales is so shy because their vehicle price is still very high. Year by year, four years from now, we are 100% sure it's going down. Thanks to batteries, thanks to our components, and also lots of customers start to compromise [auto motive range] that makes batteries smaller. Such as such. Therefore, volume reliability in 2025 is not like current, but we still trying to be more conservative side. That's why we chose 2.5 million. 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 2030. That's first number. Second number, last time we introduced orderings or like RFQ number in one quarter, right? Still increasing. Customer decision becoming longer and longer. What we have in our hand, project customer request us to quote or we already quoted and then waiting for their conclusion is 65. We have 65 programs in our hands. Time by time, it's increasing. Information three, this is actually not number, probably natural questions from where we are having those orders. Majority are coming from Chinese automotives and European automotives, together with European Tier 1 suppliers. Roughly 60% of those volume are supplying volume of our traction motors, maybe 30% to 40% is motor alone. Those are a combination, but all are motor for EV or plug-in hybrid. Those are situations. Am I replying you enough information, James? Thank you. That's great. Could you just repeat the first one? I couldn't quite catch some of the numbers. You mentioned the 2.5 million targets. You're already at 2.8 million, you gave a couple of other figures on which I'm afraid I couldn't catch. Could you repeat, please? Right, right, right. I did. I did. 2.8 million with 70% compression ratios. Okay. Yeah. Therefore, let me calculate quickly. Again, no. Yeah. 3.5 million or something. 2.8 divided by 0.7. Or more. Yeah. 4 million. Yeah. Okay. At this moment, I have the very optimistic volumes, so that's why we're staying 2.5. Yeah. Right. Excellent. Good. Okay, look. Thank you very much indeed. That's very kind. Thank you. Mr. Pulsford, thank you very much for your question. Our next question is from [Ramsey Neelam] of State Street Global Advisors. Ramsey, please go ahead. Hi, Jun Seki-san. First of all, congratulations on your upcoming position. I wish you all the best for that. My question is around, I mean, I just want to follow up the previous question. You mentioned the mix of traction motors and E-Axle, so that is 60/40. Can you confirm that? Yeah. I'm talking about pure EV and plug-in hybrid. Okay Therefore, it is purely driven by motor. Yeah. I'm excluding motor for hybrid and micro-hybrid. With that assumption, total number we are receiving is 2.8 million with compression ratios. It's roughly, I would say 70% traction motor assembly, 30% motor alone. Okay, great. Slightly on a different topic. I was kind of expecting the impairment in the precision motor segment because we have Seagate departure in the last quarter. Can you give some color on the impairment cost related to this production capacity that is allocated to Seagate in HDD motor segment? Yeah. This is Sato speaking. Yeah. This maybe March quarter, we posted around JPY 1.3 billion of this structural reforming the expenses in spin motor area. Back in Q3 2019, JPY 1.9 billion. Total is JPY 3.2 billion of kind of impairment cost or early retirement package related to Seagate business. Also maybe June quarter, maybe we will post a little bit more for departure of the Seagate business. Maybe JPY 2 billion or something like that. Total maybe JPY 5 billion-JPY 6 billion of impairment cost or restructuring cost will be posted by departure of Seagate business. That's fine. Thank you for that. Yeah, that should help. On the similar lines, can you give the profit breakup between the HDD and non-HDD, and also the price for HDD? I mean, average ASP. You mean the hard drive ASP situation? Yeah. I want to know the operating profit margin for HDD and non-HDD within small precision motors business. Small precision motor business, the OP margins on the hard drive was for the fourth quarter. That w as a 31.3%, and the overall margin was 15.82%. The rest is we do have something like roughly 10%. Is that fine? Yeah. That should be fine. On the ASP side, I can see there is a significant- ASP side. improvement in the ASP. Yeah. Hard drive, right? Yeah. For this quarter, ASP of our spin motor for hard drive was something like a just a minute, $7.40, which is a little bit down from $7.46 in December. Yeah. Okay? Yeah. If I may, can I ask on the slide number 17, which is E-Axle related investment, so is that including the potential M&As required for vertical integration as well? Or it is excluding any kind of M&As in that particular area? Yeah. This is just the R&D cost and also capital expenditure for traction motor business. We exclude the M&A in this graph. This is investment when we grow just organic sales. Potentially we may purchase any other companies, but this is not included in this chart yet. Yeah. Thank you. Probably the last question from me. I mean, general industry, we've been hearing about the chip shortage kind of halting the production for many of these OEMs. Do you end up experiencing that kind of volume decline from your side? What's your expectation around this area in coming quarters? This is Jun Seki speaking. Let me reply. Actually, segment by segment, situation is very different. Heaviest impact looks like coming into our automotive area. It's nothing strange because it's a huge site, and then they're using lots of semiconductors and plastics and copper and aluminum and steel. Once they have some shortage in some area, suddenly they have to stop the line. Automotive, I think their new car demand expectation was around 86 million-87 million in this year. I think at least first quarter looks going as like only 8 million or less pace, so quite slow. I think most of those reduction is coming from semiconductor impact. I know semiconductor is number one element. Even semiconductor element disappear, they have a plastic element and then steel element as next. They need recovery from all areas. If we look at the lead time inventory in North America, it says standard is 75 days, but I never seen 75 days. Usually they have 85-90 days as average. Current lead time inventory in North America is less 40 days. I think it's 39.2 or something. It's extremely low. I heard that it's record low. Demand is there, just automotive company cannot build. We call this is a positive type of bump. Once everything set, suddenly they increase the production volume. Now it's good chance to reconstruct our cost again because sales is low. We believe it's coming maybe June to July timings at the latest. Okay. That's what we are seeing. Okay. Meanwhile, we have some impact for home appliance and commercial appliance. So far, customer demand doesn't show any deterioration. Actually, it's increasing. We are following those increased volumes. The problem here is all those supplier is requesting us to increase price. Many are still arguing. General impact is 4%-5%. Of course, we don't approve all of these, so it's still arguing. Finally, we negotiate with our supplier and our customers, and then we need to absorb this remaining increase by other cost reductions. [audio distor tion]. Yeah. Thank you. That is very helpful. Yeah, thank you very much. Thank you. Okay. Thank you, [Mr. Neelam]. Before we move on to our next question, please let me repeat that if you'd like to ask a question, please press the star key and one on your touchtone phone. Again, please press star and one if you'd like to ask a question. 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 the pandemic. I think it was from JPY 40 billion to JPY 23 billion. 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? What margins would you see on that business as well? Thanks. The Mitsubishi Heavy, because of COVID-19, 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 billion per year, maybe this fiscal year. Maybe backlog or order intake has been increasing at this point, so that maybe fiscal year 2021, annual basis, the sales will be around JPY 30 billion in fiscal year 2021. We are not sure when we will be able to close this deal, because of antitrust. The investigation is going on. That's why I'm not sure when at this point. Anyway, annual sales will be around JPY 30 billion of our top line. Maybe profit-wise, maybe it's still losing money. Together with increasing the top line, it's going to be break- even in late fiscal year 2021. That's current situation. Thank you. That's very helpful. [Bradley], this is Jun Seki. Let me add a few more comments. We are expecting this Mitsubishi Heavy Industries Machine [audio distortion] to supply many of their machining equipment to Nidec Automotive divisions, because our goal is 10 million productions in 2030. To do that, we need over 30 lines over 300,000 capacity per year. One line capacity, 300,000 components per year, we need 30 of those. We are going to set up around 10 to 12 by 2025. Mitsubishi Heavy Industries has a significant high technology, but very expensive. That's why they stay very low volumes, not so profitable. We are sure, once we officially absorb them, we can compress their fixed cost more, we can make an intensive order to this. While we are group, we can show everything very transparently. They can estimate what they have to change and what they don't have to change. Usually, fixed portion, they don't need change for long life, is over 80%. That makes their R&D cost very low. I'm showing just maybe 20%, 30% of our activity, but I'm sure we can make them more revenues because of our demand from Nidec ourselves, and then we can make their cost very small. Just additional comment. If I understand right, it sounds like you're mainly buying that to produce the machines you need internally to hit your E-Axle target. I guess, should we think of that acquisition as more like CapEx? Is that maybe why your CapEx budget was lower? Yeah, exactly. Thank you. Okay, great. Thanks. Thank you, [Mr. Schneider]. Let's move on. From [Ramsey Neelam] of State Street. Ramsey, please go ahead. Yeah. Thanks for taking my question. Just to understand, Nidec has a new business area in a mobility area, like e-bicycle and e-scooter and maybe the mini EV. Can you give us what is the total market scope there, or total market size, if we have some numbers around it? What is the scope of Nidec going into that market? I know it's a significantly very big market, but can you give us your strategy to acquiring to that market or capturing the business in that market? Okay, Ramsey. Let me reply. After my reply, Sato, if you have any additions, please do. First, about compact EV, we call mini EV. We don't know, to be honest, we don't know yet. It used to be very small, but Shanghai GM, Wuling Hongguang Mini completely breaks into that area. They have a JPY 4,000 EV, it's flying, actually. They sold 200,000 EV by 200 days from their start of sales. That was March. Amazing data for those sales is 72% of those buyers are person who was born after 1990. That means most of people purchasing this is 20 to 30 years old. Mostly 20 something. Yeah. 60% of this buyer are female. You may not be so familiar with this number. Whenever you go, female buyer of vehicle is around 30%, most of those case. Even they drive, owner of that car is husband or fathers, and therefore, naturally, male owner is majority. This car is loved by young girls. If we look at their behavior, they love the mobile phones and the fashions through Amazon or Baidu. They need to spend a lot of money, they don't want to spend so much money for automotive. Meanwhile, if they use a public transportation like bus or train to go to office, it's danger because of COVID-19. I don't know if they are buying by themselves or their parents is giving her money to purchase new cars, that's fine. We already got four more orders from their competitor. Their competitor is going to change what they are building because buyer of this car is very different from current automotive customers. One notch lower. Okay. Those parts buyer doesn't move from current vehicle segment. This is pure additions. If this happens, not only China, but also India, Latin America, even Africa, potential demand is probably over 200 million addition on top of current vehicle number. This is huge. It may not grow so fast, but once it breaks through, it probably grows very fast. That's Mr. Nagamori is predicting and me also. Mini EV, we don't know. Let's say at least 100 million by 2030. That's [three] years since. Meanwhile, e-bike is, I think this is the segment of just replacements from gasoline-driven motorbike to motor-driven motorbikes. Current share of EV in this area is almost zero. I think new bike sales volume annually is around 20 million to 30 million. It's a big potential. Okay. Particularly in Indonesia or India, emission level from motorbike is much worse than automotive vehicle, four-wheeled vehicles. Government is very serious to shift from gasoline-driven motorbikes to motor-driven motorbikes. I think that field is around 20 million-30 million annually. For motor shifted bicycle, this is also booming. Yeah. High-cost country and low-cost country. It's a big potential, but we need more study for this area. Okay. To follow up on that, these are the technologies that Nidec already have, or you have to invest little amount in this area to further reach the market requirement? Also, one comment on these margins, 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. Their quality levels, durability levels, and then some reliability, I think it's not so high. For us, it's very easy to overtake with the same price. We definitely have. For me, in this side, at this moment, we are seeing a clear preference from Chinese customers and Chinese audience. They want to use locally made motors. Of course, we can localize, but at least they are seeing we are Japan-brand, not Chinese-brand. We are convincing them, sooner or later, they want to export those. I think there is a market even in Japan. Customers don't trust Chinese-made motors. If you have our motors, probably it's much easier to convince export customers. That's communications. 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 Pulsford of Alma Capital. James, please go ahead. Thank you very much. I wonder, could you comment, please, Jun Seki-san, on the Well, obviously the major news today is that you're taking over as Chief Executive Officer from Nagamori-san. I'd be just interested to hear any other, in practical terms, how decision-making may change at the top, what Nagamori-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 are waiting before this question. We wonder why we don't receive these questions. It's very natural. I wait. Yeah. Thank you. Before we run out of time. As we repeatedly explained at this place, Nagamori-san and myself have a very close communication day by day, week by week. Of course, from the beginning, Nagamori-san wanted me to take over CEO positions in some days. Of course, like one year, it was impossible for me. I need a long way to understand more deeply for Nidec's, and employees, and strengths and weaknesses of products, and our customers. He said, maybe a few years later, if I'm completely settled in our company, if I show strong leadership, and also a relationship with all executives and our employees, he could transfer the CEO position to me. That was a discussion from the beginning, for more than one year. In March, he started to say he pretty much satisfied. I'm a bit shy to say it by myself. This is just to tell you what he said, but he is satisfied with the way of my management. It's very similar to his own. It's of course, because I'm copying intentionally. Outcomes of 2020 financial result, and also some reputation from people in the management side, employee side. I didn't expect that, he said he want to transfer it to me. That was middle of March. Since then, we prepared. I didn't feel comfortable to transfer everything at once. Because employee worries, shareholder worries, investor worry. We discussed that we should have a very gradual shift. A straight answer to you. We have some change for DOA, but it's nothing significant. Nagamori-san take his decision for all important things. Let's say over JPY 10 million investment are important. Those decided by Nagamori-san still. Number of decision for those are quite few. Meanwhile, before, even a $10,000 investment bring to him. So day by day, he must make huge decisions. Those come to me, not to him. I take over those delegations. For the company basis, important decisions, still, I ask him to decide. From that point, I would say, no major change, although I take over CEO. He stayed this company as the largest shareholder, founder, and then Representative Director and Chairman, and Chairman of the BOD. For all important decisions, such as high investment or a new area to expand or new companies, Nagamori-san and myself make together. Meanwhile, for day-by-day operations, I used to have only automotive and appliance industry commercial, but from April 1st, I'm taking responsibility for precision motor and group company as well. For solid work, day-by-day work, for organic growth side, I take care of that. He stay for major decisions. Even those day-by-day communications, some are very important to discuss with him. I keep a one-on-one with him at least one hour per week, two hours if necessary, we don't make any misalignment between Nagamori and myself. Last, decision to go ahead for this shift is also helped by executive lineups. I brought many executives which I can rely on, we also hire from outside. Executive lineup is much more mature than one year ago. That also made Nagamori-san's decision earlier. This is the status. From now to 2030, we're going to grow from current 1.6 million to 2 million, 5 million, and 10 million. Time by time, if we clear my response, Nagamori-san probably shifts more delegation to me. It's not happen all of a sudden. We do this gradually. That I must explain. Thank you. That's clear. I can see the change is more, as you say, day-to-day operation at the moment. Are there any other changes that you've decided that are happening in six months or three months or a year that already decided, other than what you've just outlined about the day-to-day operational stuff across the company and investment stuff? Yeah. Day by day, I don't. Small decision to go in Nagamori-san's. I take care of all of those. No, I understand. That's it. No other major change. No, that's very good. Is there anything else that you've decided, because as you mentioned, this stage thing, is there anything that this is what's happening from now? Is there anything that 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? That's right. We intentionally make this point further because we trust each other. He believes if any significant thing happens, I definitely report to him and discuss with him, consult it with him, so he understood. We don't have to define it so clearly on this point because of the deep relationship. Right. Okay. Good. Okay. Thank you very much for that explanation. Thank you. Thank you, Mr. Pulsford. It seems that we are running out of time, and probably we can accommodate just one short more question. If the senior management of the company welcomes any relevant question. Otherwise, we would like to conclude this call. Okay. 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 UFJ Morgan Stanley Securities. Thank you very much. Thank you, everyone. See you next time. Bye-bye.