I'd like to start the presentation for Nidec Corporation's earnings result for the first and second quarter of this fiscal year, as well as the business update. I'd like to present to you today's presenters. First, Mr. Kishida, the President and CEO of Nidec Corporation. Mr. Kazuo Nakagawa, Vice President and Deputy Chief Financial Officer of the company. We have Mr. Masayuki Minai, the Vice President and Chief Compliance Officer of the company. I am Keita Watanabe, General Manager of Nidec Corporation's Corporate Communications Department. I'd like to give you an overall guideline outline of today's conference. Mr. Kishida will give you some opening remarks, followed by Mr. Nakagawa's presentation on the financial update. Mr. Kishida will take the next part about talking about Nidec's latest business activities. The floor will be opened for a question-and-answer session. Mr. Kishida, please start your presentation. Thank you. My name is Mitsuya Kishida, the Representative Director, President, and CEO of Nidec Corporation. Today, I'd like to talk to you about our business update for the first and second quarter of this fiscal year. We'd like to talk to you about those information which we have disclosed today. When it comes to the operating profit, we have experienced a significant downward revision from the last time we made a presentation about it. We have caused concern and trouble to all the shareholders and investors. We deeply apologize for that. At our company, as well as our group companies, there have been suspected cases of inappropriate accounting transactions. We have commissioned the investigations to a third-party committee, which is an independent body. When it comes to the securities report for this fiscal year, we have received a disclaimer of opinion. Under these circumstances, our share price has been designated as a security on special alert by the Tokyo Stock Exchange. During this time, we have caused tremendous trouble and anxiety and concern to our shareholders, our investors, people of the Tokyo Stock Exchange, our business suppliers, and our business partners. I and we truly, deeply apologize for having caused so much trouble. Regarding the first quarter financial account closing, operating profit was significantly revised downward. We deeply apologize for not being able to have this type of opportunity since July the 24th, when we had the last presentation about our financial earnings. We deeply apologize. Now, I would like to be, we'd like to be seated as we make the rest of the presentation. Mr. Nakagawa, we present you with Nidec Corporation's financial update. This is Nakagawa speaking. I'd like to give you a financial update of our company. Here's our net sales over here. The sales increased by JPY 8.5 billion compared to the previous fiscal year. Operating profit was decreased by JPY 99.4 billion. We had the financial impairment in our automotive products, including costs related to provision for the contracts lost with our customers. There are specific negative factors, as you can see. These will be explained in detail later. On the other hand, when it comes to cash generation, we remain healthy with cumulative net cash provided by operating activities of JPY 112.3 billion, free cash flow of JPY 45.2 billion for the first half of the fiscal year. As you can see on the note, there are three points that I'd like to make here. When it comes to the third-party committee, it is still investigating suspected improper accounting. If there are any suspicious activities, there will be maybe another downward some revisions to our financial report. We have received the special alert designation from the Tokyo Stock Exchange. We received an interim review report containing this Disclaimer of Opinion from the accounting auditor. Please go on to the next slide, please. This is a year-on-year changes. The net sales are on the top, and the operating profit is on the bottom section of the slide. Operating profit, as you can see, is here at 21.1. And JPY 120.5 billion last fiscal year, and it's down to JPY 108.8 billion. Now it's JPY 221.1 billion, as you can see, for the first half of this fiscal year. There are some reserves for the items that will be high possibilities. [Foreign language]. Breakdown of the provision for the contract loss, impairment loss, and claims for reimbursement. We have accumulated and recorded the financial impairment over here. There's a little more than JPY 13 billion. Based on the settlement with our suppliers, a certain amount, and there is a loss of JPY 19.5 billion. JPY 87 billion were recorded. JPY 12.1 billion of operating profit was recorded in terms of yen. When it comes to profit attributable to owners of the parent, it's actually JPY 45.5 billion. Please take a look at the next slide over here. It's a year-on-year change. It's JPY 664.3 billion, plus JPY 626.3 billion. You can see the JPY 60.1 billion, and you can see JPY 61.5 billion for the preliminary result for the first quarter. The third one is about the closing and all the breakdown of significant losses, JPY 59.4 billion. You can see a total over loss of JPY 85.8 billion. You can see the JPY 26.4 billion in deficit in the red. You can see the decrease in operating profit by JPY 47.5 billion. In the previous slide, you can see on this slide, JPY 89.5 billion, as you can see. This is based on the result of the differences in the current exchange rates between this and the previous slides. It's all the same contents. If you go to the chart on the right-hand side, the profit attributable to owners of the parent, minus JPY 9.4 billion. Next slide. Finally, cash flow. Yellow is operating cash flow. Gray is investment cash flow. Red is free cash flow, the line graph. On the right, second bar, the free cash flow, JPY 9.8 billion for this first quarter. Second quarter, JPY 35.4 billion free cash flow. First half, free cash flow, JPY 45.2 billion. You see on the right in the pink, operating cash flow, JPY 11.2 billion. Then you subtract the investment cash flow, then you have the JPY 45.2 billion cumulative. Compared with JPY 28 billion, it is an increase of JPY 17.2 billion. That was a report from Nakagawa. Next, Kishida will explain about the history of the incidents and our initiatives. From here, let me explain what has been the history and our determination about dealing with these issues. Let me make that report. On June 27th, we had the deadline extension for the securities report. Since that announcement, several issues have come up, and we have been responding to each one of them and countermeasures. We have made a determination that we are going to make countermeasures against that. With that, we announced the establishment of the third-party committee on the 3rd of September. Three months after 27th of June, that was the deadline for the submission for the securities report and the internal control report. Then October 23, because we could not fix the amount available for dividends, we decided no dividends for the interim and outlook for the full fiscal year and outlook for dividend payment at year-end. We said we do not have that outlook. October 28th, we were designated security on special alert. Immediately after that, internally, as company, we decided that we're going to fully cooperate or continue to cooperate with the third-party committee. We renewed that determination. In parallel to that, we considered what we could do thoroughly as a company. On October 30th, we established the Nidec Corporate Reform Committee. On the 4th of November, we disclosed that in the form of apology to our partners on the same day. From the two mega banks, we were able to have a commitment line totaling JPY 600 billion that we have announced that we have concluded those commitment lines. Today, we are now disclosing the first and second quarter financial results. We have submitted those financial reports for the quarter and the first half. In terms of the policy for developing the improvement plan, we have submitted that to the TSE today. Many incidents are in front of us. What should we do as a company? What is the right thing to do? The investigation by the third-party committee is continuing. In parallel to that, we felt that we need to take initiative to work on this. We have been working on several measures. FIRs issue started this chain of events. With this as a trigger, we're going to make sure that this will never be repeated again. We have been working on recurrence prevention measures. For one thing, we are going to establish compliance first sentiment, and we're going to change the corporate culture. That is going to be our priority. From the board to all of the group companies, we're going to deliver clear messages. Myself, I am going to communicate to the management all around the world clear messages more frequently than before. That's what we have already been doing. I'm not saying that that has been sufficient. Not at all. One by one, we should work on the issues based on the findings of the third-party committee. We're going to take every necessary measure to respond to these developments. In terms of strengthening the legal and compliance department, giving them more authority, we have positioned internal lawyer, and we are going to strengthen the whistleblower response and investigation systems. In terms of strengthening the organization and structure, we are strengthening the global governance structure. We have established the position of the CLO, Chief Legal Officer. Murakami is the new CLO. From the FIR issue, we have seen a series of events. Especially in North America, we felt that it was necessary to have an expert in legal compliance. Mark Carroll has been employed as a fellow, and he has started work in the U.S. We should have a good balance of various businesses and regions. There should be checks amongst them. In order to establish a system that has those checks and balances, we have taken a very important first step. Also, in addition to that, we should have headquarter function, and we should have strengthened regional functions as well. We are not going to compromise in achieving that. On the 30th of October, Nidec Corporate Reform Committee was established. The corporate culture that is in front of us, we have to reform that culture itself. We need to shift to a more ideal structure. For that, we have established this kind of committee and an effort. This is in parallel with the investigation by the third-party committee. We are going to try to reform our corporate culture, organizational culture. No longer will we have the HR system where people who make short-term revenue will be appreciated. We're going to reform the HR system that rewards those who help to create a long-term healthy organization. We're going to develop human resources based on that. In order to overcome the various accounting issues, we're going to have procedures, regulations. We're going to also reform the way the business is operated, including the IT systems. We will have these subcommittees held globally. We are now organizing these subcommittees and assigning team leaders. The responsible people have already been assigned. They are conducting activities daily and leading the effort. We will be continuing to work on improvement on this activity as well. We're going to further enhance transparency, and we're going to be reporting about our activities to the third-party committee. Through those measures, we're going to deepen these activities. Myself, I will serve as the chair of this committee. I'll take the responsibility to start this corporate reform committee. What comes out of this committee, I'm going to ensure that they are implemented. That is the effort that I will make today. In terms of the improvement plan development policy, we have submitted that to the TSE, and we've disclosed that. The content of that is reforming corporate culture, improving the human resource system, and having an accounting system where there's no interference, and also reform of the IT system as well. The investigation by the third-party committee, we're going to continue to fully cooperate with that and make sure that we have thorough investigation and elucidation of the root causes. Going forward, we will have a report to be released by the third-party committee. We will receive it with sincerity. We will make sure to launch and prepare the improvement actions. When it comes to this corporate reform committee, it will make sure to provide people with instructions on what to do and how to do those actions. Towards the end of late January 2026, we will, and we are planning to submit our improvement plan. Towards the end of October 2026, we will make a report to confirm the improvement of our internal organizations so that we can have an assessment by the Tokyo Stock Exchange in the end. We have caused various concerns and troubles. Once again, we apologize to have done that. Going forward, Nidec will change. We will eliminate all the bad habits from the past, and we will be reborn as a new Nidec. We will cleanse ourselves, and on a global basis, we will launch all of these actions. That concludes my presentation for today. Thank you. Now, we'd like to have a question and answer session. If you have any questions, please raise your hand. Before that, please state your name and title and the organization you belong to. We'd like to please make sure to keep your question up to two questions so that we can give everyone an opportunity to ask questions. This is the joint conference for analysts and press people. First, we'd like to have questions from the mass media. If you have any questions, please. The person from the right, the second person from the right. Thank you very much for your presentation. This is Hiroko of Nikkei Newspaper. At this moment, you have this corporate reform committee in your presentation. When it comes to this inappropriate accounting practices, can you provide us with a background? How do you see the situation that caused it? You are going to have an internal improvement, and what reform will be taking place? What caused do you think these inappropriate accounting practices? If I may, here's my second question. When it comes to the schedule going forward, and it's very difficult for you to plan, submit your improvement plan without a specific date. Can you give us an update on some specific data as to submit your improvement report? Thank you very much for your questions. I would like to give you an answer. As necessary, Minai as well as Nakagawa may give you some additional comments if that's okay. First of all, to answer your first question, what caused these inappropriate accounting practices? The background about our launching the reform of our corporate culture. As of today, as has been disclosed publicly, there are five inappropriate accounting or compliance-related issues. We need to reveal the details of these cases. We need to come up with a reason. The main reason for these issues is, first, it's related to corporate culture. We need to reform the corporate culture that we have in our company. The third-party committee will provide us with its final report. Based on that, we will have a deeper analysis and a deeper review of the background of this problem. As of today, we have recognized various facts as well as issues based on which, as I've said to you, I can say the reform of our corporate culture, human resources-related issues, accounting process-related issues, and accounting system-related issues exist. These are the three major reasons for us to have this problem, inappropriate accounting practices. We need to eliminate any and all of these issues going forward. We will first make a review of these items, and we will go forward after solving them. When it comes to our schedule going forward, as you have pointed out, when it comes to the investigations by the third-party committee, detailed points about the schedule are not yet to be clarified yet. I cannot give you any comment on that. We have received some input from the third-party committee. At least by the end of this year, we will not be able to receive any report from the third-party committee as far as we have been informed so far. If there is any update, if we receive any report from the third-party committee, we will make sure to disclose such information in a proper way. As far as we are concerned, we have been designated as a security on a special alert back several weeks ago. We have already submitted to clarify what we need to do going forward. To our standard of October 2026, we will have some issues pointed out by the third-party committee. Minai, do you have anything to say? This is Minai speaking. I'd like to give you some additional comments here. We have this investigating body, the third-party committee. Many people must be interested in when the report is going to be out. We have not been able to give you any detailed information about it, and we have caused some anxiety and concerns about it because of that current situation. I'd like to give you some detailed information about it. We need to utilize this opportunity to address and solve any and all accounting-related issues and problems. In that regard, we have spent so much time so far. We definitely need to be focused on solving those issues, eliminating those issues. I believe the members of the third-party committee are dedicating very much to themselves to these activities. We have more than 130 business bases around the world. I'm not saying that all of these bases have any problem, have a problem or so, but we need to check all of these business bases thoroughly. That is what's important for us today. Not related to the current issues. There could be some issues from the past that we could uncover during the course of investigations, depending on the scale of the business bases as well as some of the events, the chronological order of those events. These are the things we need to check, investigate. This is how we like to address and eliminate all of these issues we're going to face and we are facing. That is all from me. Thank you. Questions from the analyst? In the front row? In the middle? From Goldman Sachs, this is Takayama. Let's sort out the issues or the facts, including this time. You talked about three incidents, three issues. You have uncovered these, and there are those that may be undiscovered or there may be cases that you're going to investigate on. What kind of companies are included there? Like automotive inverter or traction motors. I wasn't sure if they were included or not. What has come out for which there will not be any more losses? For what you might have more losses? I mean, have you gone through the 300 locations already? Have you already grasped most of the issues? Are there many places where you have to continue to do more investigation? Let me respond to that first, and then have the two people supplement.JPY 87. 7 billion comprising three issues. Contract JPY 36.5 billion for contract loss provision. That would be for our inverter business for life. That is the provision for the loss that we assume for that. For the inverter business going forward, next 10 years, we think that the business will continue. All of the losses that may come up for the next 10 years, that is included and booked. Nidec Elesys, that is the company that was doing this business. From April this fiscal year, has been integrated and absorbed into Nidec Corporation. The company as a whole is working seriously to work on this. The second one, second item, that was about the fixed assets impairment. Two elements there. One, as I said, for the inverter business, there was some fixed asset, total amount of that. Also for the traction motor business. In the past, for four years, I have been conducting restructuring for the automotive business conversion. What was remaining there? By the end of November, we are going to have communication, and we see signs of impairment. We have taken measures to address the full amount. That is the impairment for facilities. The third factor is for the claims for reimbursement. NPE in France, where there is a joint venture that we have with Stellantis. From supplier, we have received claims for reimbursement. In November this year, NPE and the supplier came to an agreement, and the full amount that has been agreed has been booked or included in the figures. How is it going to be divided by the two parent companies? Will there be negotiation with Stellantis? NPE is the frontline company, and the full amount has been booked. For those four points, for those three issues, we think that there will be no more impairment going forward. For the other items, the progress, for the 350 corporations, how much progress have we made? We have not grasped that progress status fully, myself or the company. The third-party committee is taking various methods and conducting investigations on a number of cases. For each one, it is our mission to respond fully to provide answers to their inquiries. That was the background. Let me make some additional comments, Nakagawa. The numbers that we announced were based on the facts that occurred until November. In terms of the incidents, they have been continuing from the first half. They have been treated as adjusted subsequent events. Those events that triggered the impairment occurred by November. From Q1, for example, for the claims reimbursement, we were negotiating. For the inverter, the loss provision, impairment check we were doing every time. This time, the future profit and loss of inverters, we booked in a lump sum because this product is going to be SOP in January next year at that time. As of now, the current management has estimated the lifetime profit and loss compared with the past. At one time, we had some outlook. Even if we had that kind of estimate, we do not have clear evidence to prove that. That is why we made a judgment that it will be impairment loss. For these three items, they are not things that happened for the first time in Q2, like inverter development that's been continuing since before. According to the investigation by the third-party committee, we cannot deny the possibility that there will be further revisions in past statements. I want to get the correct understanding of this. The loss from what may come in the future, we have already reflected. I mean, maybe there are some that have not been investigated, but the biggest ones have already been found and included. For the past ones, there could be perhaps a retroactive amendment. Going forward, most of the losses have been included. Of course, there could be some partial changes because you are just expressing an opinion. From outside, investors have the fear that you might have this magnitude of loss again in the future. I want to get a correct understanding there. This size of loss, will it happen or not? We are not able to accurately tell you whether that will happen. Inclusive of that, through the third-party committee, we will be conducting verification as we move forward. One thing I want to tell you, second quarter onwards, we have been working and having deep discussions with the accounting firms. In the past, we tended to have this short-term response. We have discussed what we should do for the long term, what is the right thing to do. That is going to be the perspective that we are going to take. That is what I would like to communicate to you. Let me supplement with one more comment about the future. I mean, we don't know because we don't know what will happen to the business, especially for the automotive industry. You don't know what will happen tomorrow. That's the situation we are in. Given those circumstances, I mean, for the assets that we have, would there be an event that would require impairment? If there is, then we're going to firmly work on that. At that time, if something occurs that's different from our outlook or results, then we have to look at what is actually happening and make decisions accordingly. That was one big question. Second one, what's the true strengths of your results? JPY 47.5 billion in Q2. As of Q1, I think that was more than JPY 60 billion. I mean, you had that capability to go JPY 60 billion, and you have come down. I think maybe you have taken some conservative calculations. This is your actual capacity to generate results, or this is an emergency, and that caused confusion. Your actual capability has come down. In the second half or the second half quarters, how much can you bring back to the previous state? For Q2, in our ordinary business for automotive, we have conducted structural reform. For machinery, we have conducted restructuring. Those expenses have been included in the figures. Inclusive of those, we have made various responses. At the same time as we have been repeatedly saying, for new big business, we prepare for increased production where there is strong demand. We are making the preparations. Toward the second half, there is no bottleneck that is stopping the business from moving forward as far as we know. Midterm management plan still is alive. It still exists. Conversion 2027, we have presented that as a midterm plan. The numbers in those midterm plan, we are intending to review those numbers. In terms of the direction of the midterm plan, 350 corporations and more than 200 plants, we should integrate them so that we will have five efficient businesses. We should have restructuring towards that structure. That policy has not changed, and we're going to strive to transform to that kind of structure. What has been happening, we're going to put into the process, and we are calculating what will be the accurate numbers. Thank you very much. We'd like to have some questions from the reporting agencies. A third person from your right. This is Seiya Asahi Newspaper. First of all, I'd like to ask you a question, Mr. Kishida. Within the Q&A session, you talked about five inappropriate accounting practices. You said five. Can you please tell us what these five cases are? You talked about the automotive business. Do these five include these three automotive businesses? Minai-san will give you some details about this. Do these automotive issues do not have anything to do with the five points that I've just talked about? That's one thing that I want to make sure that you understand. This is Minai speaking. I'd like to give you an answer for that. When it comes to these five issues that I've just made, we have made, we have said about the committee checking various matters. In addition to that, among all the items we have disclosed to the public, there are issues that are under investigation. One of them is as follows, which is called FIR. There's one of our subsidiaries in Italy, and they have had some trade-related issue. It's about the exporting of the motors. There was a violation of some kind of error made in the exportation of motors. The second one is about issues with one of our subsidiaries called Nidec ASI Corporation. This is about the transaction of equipment between China and Japan for product development, and the estimation of the equipment was wrong. That's the second issue. This issue is still under investigation. The third one is about our Swiss subsidiary exporting related issues. An internal investigation is underway about this issue. The fourth one is about our subsidiary in China. It's about the understatement of withholding tax. This issue has started to be investigated. These are the four of the five issues that are under internal investigation by utilizing an outside third-party organization. The fifth one is about Nidec Techno Motor Corporation's Chinese business base. This is about purchasing a temporary payment. It was back in July that we discovered this issue, and we then started investigating into this matter. From then on, multiple business bases have been revealed to possibly have the same type of problems. Techno Motor and other issues are currently being investigated by the third-party committee. The internal investigation is taking place on four issues. The other one issue is about Nidec Techno Motor issues in China. Techno Motor's temporary purchasing money and Nidec Corporation and group companies have some issues that possibly involve executive arbitrary change in prices or data. The third-party committee is investigating these issues, covering approximately 350 business legal entities around the world. That is correct. Here's my first question here. After checking all these relevant facts, you talked about the amount of approximately JPY 87 billion, and the third-party committee may or may not include some issues. A suspicious statement may be described over here on the statement. Let me give you an answer to the question, followed by some necessary additional information on the statements by these two people on my side. I've talked about this determination of financial impairment. We do that on a quarterly basis based on evidence and facts. That's what we have done so far. As I've said already, when it comes to the three different sections of issues, inverters, traction, NPE-related issues, by November, we have identified various issues, and we have conducted some determination on financial impairment. It was decided to be incorporated into Q1 data. On that hand, when it comes to these major issues, the third-party committee is now trying to determine when will be the right timing for these issues to be incorporated. We have these contingent issues that came to surface later. There is a possibility that the decision could be made that these should be recorded at other timing. Depending on the determination by the third-party committee, you may come to a conclusion that the post-deployment was made intentionally. That is correct. That is what is written here, is indicated here. Here is what we have taken very seriously. Arbitrary modification. I hope that is not the case, but if there is any modification of the data, those issues have to be identified and corrected. That's what we are determined to do. We will go through all the issues via the third-party committee, and we will be fully cooperative with this committee. Do you have any additional comments from anyone there on that stage? No. Here's my second question. Back in September, you submitted and disclosed the securities report. In that report, you said that the financial system wasn't really effective. This is not the first time. Back in 2024, you have had a problem with the Nidec Drive Technology. Financial reporting system wasn't really effective, and you have made this type of statement for three consecutive fiscal years. This is a weakness about your financial system in your company. You have submitted your dividend over the limit, and you have established a third-party committee back then in the past. Over the past few years, I understand what you're going to do going forward. Over the past few years, what have you done and why those efforts were not really successful, and why you came to have those current problems? Can you, Kishida, answer this question? Thank you very much for your question. When it comes to all of these issues, when it comes to the final answers to these issues, we will first receive the report from the third-party committee, and we, as a company, need to decide what to do. That is what is important, in my opinion. As of today, my impression is as follows. On a case-by-case basis, we will take appropriate required actions. That is what we believe we have done. These actions themselves may not have been drastic, fundamental, permanent. It is a question as to whether these actions have been global, effective. That is one of the issues to be tackled by us, including the third-party committee. That is all from me. Thank you. Next question from an analyst from the front rows. Sato from Morgan Stanley Securities. Thank you for the explanation. Two questions. First. The third-party committee report. It seems difficult that the final report will be issued by the end of the year. The report from the third-party committee, I mean, the original text, would we have an opportunity to see it? After the report is issued, then the financial results with the appropriate opinion from the audit corporation, how long do you think it's going to take? I will respond to the extent of my knowledge. The report from the third-party committee, they have informed us that they will not have the final report by the end of this year. The final report itself, I believe, will not be disclosed. However, from the third-party committee, there will be some communication, I think, and the findings in the final report, the company side will publicly disclose with transparency, will make preparations for that. On that first point, any additional comments? From the third-party committee side, there should be a determination, and the content will be disclosed based on their determination. I think that's the ordinary way of doing things. We shall discuss and confirm with the third-party committee members and figure out the appropriate disclosure method. The second question about the audit opinion. That will be up to the decision and determination of the auditor. The amended statements, we'll have to ask the auditor to thoroughly go through it. Please accept that that is the extent of my response. As of now, you don't know when. Schedule-wise, no, it's something we will not be able to answer from our perspective. Understood. Second question. Q2 financial results, page 20, talks about the interim consolidated cash flow statement. Numbers are very detailed. Sorry to go through them. Operating cash flow, JPY 112.3 billion. Of that, operating liability is increasing, and then there is an increase in provisions. On those two points, the amounts are very large. Compared to the previous year, the amount is larger year on year. Explain the background of that, please. That's my second question. Nakagawa would like to respond to that. About the operating liability increase. Earlier, we talked about the claims for reimbursement. That has a big impact on that liabilities. That's my understanding. Other provisions, that's increasing. That is due to that other factor that you explained. Yes, we explained that it's for the provision for the claims for reimbursement. Excluding those items in the ordinary business, business is going on as usual, is what I would assume. Employees, I think they are very busy responding to the third-party committee investigations. Talk about the impact to your ordinary day-to-day business. Are you starting to see that impact? Can we understand that such impact does not pose any material problem for you? Thank you for the very important question. Our intent is that the ordinary business operations, there is nothing unhealthy about it. We should work to further enhance the health or the integrity of that business. However, the third-party committee has been established, and we have been designated as a security on special alert. Those are facts. Based on those facts, several customers have indicated concern to us. There have been such developments for that. We, in the management, well, to all the employees around the world, we should communicate the progress of the investigation and the investigation of the Corporate Reform Committee, and also the information that we have secured the JPY 600 billion commitment line. We are explaining to our customers one at a time very thoroughly. That is the current situation. For the customers, for the first half results, we have now come to a stage where we could report it. In terms of the business developments and preparation for investment and introduction of new products, we want to make sure that we ensure integrity and we continue to work on this. At the same time, we are going to provide full cooperation to the investigation so that we can fix what needs to be fixed thoroughly. That is our stance about business operations. Thank you so much. [Foreign language] Next person from the person, the lady in the white clothes, please. This is Nagayo with TV Tokyo Broadcasting. I'd like to ask you two questions. The first question should be addressed by Mr. Kishida, in my opinion. But in your explanation, you talked about improving the corporate culture several times. From your perspective, I believe this is before the release of the report by third-party committee. Where do you think you have problems with your company's corporate culture? Next question is about the JPY 600 billion commitment line. It's JPY 340 billion as of the end of the fiscal year. I believe you have enough cash reserve, but you have this commitment line as much as JPY 600 billion. You said you talked about this has no effect on your business operation. What type of risks are you wary of? Thank you very much for your very important questions. To answer your first question, which is about the corporate culture reform, we need to understand all the issues. In our understanding, we tended to be focused on short-term profitability. Based on the tendency, we have pressured ourselves to achieve a short-term result. We have not focused on anything else very much. That is the first area where we need to start reforming ourselves when it comes to our corporate culture reform. Many people have said that Nidec is the company whose motto is, "Do your job right away without hesitation and never give up until it is done." In addition to these points, we need to be able to do our job properly right all the time. That's the type of corporate ethics we need to add to our existing corporate motto. That's what's very important in reforming our corporate culture. That is the hypothesis that I have as we go forward with our corporate culture reform. We need to brush up on our corporate culture in this point. I agree with Kishida-san about this. These points have been Nidec's strengths. In order for us to pursue our strength improvement on a day-to-day basis, we have been probably excessively focused on securing profitability on a day-to-day basis. This is a very good opportunity for us to make the reform on that point. You talked about previous years, but we need to stop, take a look around, and make sure to do things right for our future. That's what we need to make sure. We need to make sure that every Nidec employee does his or her job that way. When it comes to this commitment line of JPY 600 billion, here is our message from me, Mr. Nakagawa. We have, in communication with our banks, and we have been receiving our support from these companies, MUFG as well as SMBC, have given us this contract, commitment line contract for JPY 300 billion each from these two banks. We sometimes establish a syndicate, business syndicate, but we made this equality-based commitment with us and these two banks. Especially from suppliers, they gave us a question such as if the payment will be made without any problem. It is in order to eliminate those worries that we decided to have this commitment line agreement at this timing. We have about a total debt of JPY 600 billion, and we do not have to repay this amount of payment all at once. This amount of debt all at once, that is not what we have to do. At the end of month, it is just, excuse me, JPY 600 billion in two months. That is the type of view that we have, and we had a matching opinion between us and the two banks. Even without using this amount of money, we have enough amount of cash flow, and we are in a very good relationship with these banks that we use. There is no, so far, so far there is no problem with our financial infrastructure. Person on the right, in the front rows. Akizuki from Nomura Securities. Two questions from me. First. The big framing of the problem. You have the assets and appropriateness of the market to value, whether it should have provision or should it go through the impairment test. There is some arbitrariness for that. That is what was suspected. Is that at the core the biggest issue of your problems? Are there some other problems? I mean, you can ignore the small problems, but you have off-balance sheet debt, liabilities, or something that is completely outside of the framework that you are presenting. Do we have to be concerned about those things? Where is sort of this center of the problems? I want to get the big picture conceptually. Now, within management, the appropriateness of assets, I think you continuously evaluate. Whether, I mean, there could be views about whether that is appropriate. Within your company, the size of the business or the sales concerning the asset evaluation, do you need to review each time? I mean, if you are profitable, you do not basically need to review. You are profitable in basically all your businesses. I do not think that there should not be any business where you have to do those checks. Is that understanding correct? That is the first question. Where is the essence of the problem that we are confronting? That is how I understood your question. What we are facing in front of us, I mean, is there going to be something that you have never heard of? Is it going to be like a huge loss? It is our understanding that that is not what lies within the essence of the problem. There have been points made about the issues from before, like for automotive and for machinery, some business where profits were not booked properly. Those were within our sights as our businesses. Appropriate treatment, has that been done? We're going through the books retroactively. I think that is what we are doing now. That's one thing. The other thing is, no matter how small a compliance issue it is, the fact that there is a compliance problem existing, we cannot be accepting of that. The five points that we discussed, the value impact, maybe you can make a judgment about one is bigger, one is not, but they are violating compliance in each case. That's the same for all of those cases. We have to create a corporate culture that absolutely does not allow that to exist. That kind of corporate culture, all of us here are determined to establish, and through the Corporate Reform Committee, we are going to establish that, visualize that, and take the appropriate measures. Thank you very much. Second question. We talked about the corporate culture, and it is a question about that. It is a very difficult issue. Earlier, you made a comment about it. Corporate culture, I mean, it is also your strengths. It is like two sides of the same coin. The culture can be your strengths and weaknesses. Your strength is speedy management and aggressive, challenging spirit. I think those are your strengths. Compared to other companies, you have those virtues that other companies do not. That has led to your growth. Those strengths have the negative side. The intent of the management may be reflected too strongly. How are you going to try to strike a balance there? If you have an idea about that, please share. Yes, thank you. That is a very difficult point. The final decision we will make after we get the report from the third-party committee. I have been thinking since before, we have had the positive side of our corporate culture. Going forward, we are going to make sure that we allow no compliance, and that we are going to do everything in the correct way. I do not think those are two contradicting things. Because you do things correctly, is it going to lower our speed or are we going to lose our growth? That is not so. We should go back to the basics. Everyone should recognize the importance of that. We should review and rebuild the operation process. We should not hide or run away from this. We should face it squarely and work to rebuild that process. If I may say one thing, having a too short-termism, that is something that I'd like to fundamentally transform. When you pursue short-term profits, there are some negative implications of that. That is clear in the five cases. We have to fix that first, or else we will not be able to achieve the bigger transformation. With that mindset, we'd like to work on this issue. The person from the press, the second person from the top line on your right. This is Sakurai of NHK. Thank you. I would like to ask you a question, Mr. Kishida. When it comes to how do you feel about your responsibility for the business management? You are the president. Mr. Nagamori, is there the executive chairperson? When it comes to these serious issues, how do you feel about your responsibility? How would you like to take your responsibility, in your opinion? When it comes to the management responsibility, I'm the Chief Executive Officer of the company. We will take the responsibility for any and all issues. When it comes to the Nidec Corporate Reform Committee, among others, we like to make this company a better, a more global company. That is my largest mission for me to fulfill as the leader of this company. When it comes to the corporate responsibility in other areas, we like to wait for the report to be coming from the third-party committee. We will make a decision as required. When it comes to other areas, you're talking about Mr. Nagamori's responsibility as well, including my responsibility and all the responsibilities of all the people involved in individual issues. I believe each of us will be responsible for one way or another for these issues, one way or another. We would like to wait until the report comes out from the third-party committee. We will make the proper decision, and we will receive the report from the third-party committee first. Instead of resigning from the post, you are determined to focus on reforming Nidec. That's what I think I have done, I have been doing so far, and I will continue to lead others in the company. I will never run away. I will never deviate from the current direction. Here's my second question. When it comes to you, Mr. Kishida and Mr. Nagamori, when did you first know about these issues, you or Mr. Nagamori? Is there any possibility that you instructed those misconducts? I believe that's one of your major points you would like to know very much about. Those points and among other points are being investigated by the third-party committee. I would like to refrain from making a comment on the point. Thank you. Thank you very much. I understand. An analyst, please, to the far end. Naito from Citigroup Securities. I want to ask about the financial results. They provided a summary. Q2, profit was down for the machinery, and you talked about the structural reform. What was the size of that? Is it something that's happening as a one-time thing in Q2? Can you back up with some numbers? Also, in terms of the claims for reimbursement, the MOEN segment, and you talked about NPE. Could you explain what's included and not? The first part will be explained by Nakagawa. NPE is a joint venture company with Stellantis. Internally, we call it NPE. That company is in charge of MOEN. The MOEN organization is in charge of NPE. We say MOEN segment compared to the AMEC segment. MOEN is NPE. Talk about the numbers, please. The reason for lower profits for machinery, you can see this graph. Q4, JPY 11.9 billion, 990. From Q1 to Q2, JPY 7 billion decline. The breakdown of that, product mix, JPY 2 billion. Then inventory and provision, profit and loss. Q1, Q2, there was a double impact, so JPY 5 billion. Other than machinery, were you asking about something else? Other segments as well, if there are any one-time factors. First, for the precision small motors, Q1, Q2, Q4, nearline profit increase impact is seen. We're seeing higher sales and profits. For automotive, impairment, excluding impairment and special treatment, that's the dotted line, JPY 3.5 billion, and then JPY 100 million Q1. From Q1 to Q2, JPY 2.8 billion declined. The reason is that claim for reimbursement, JPY 2.1 billion payment made for that. Also, overseas operations, that was in the ACIM, and we're doing restructuring. Restructuring cost is a little less than JPY 1 billion. Price competition is becoming more fierce, so profitability level is declining a bit. For ACIM, from JPY 2.5 billion from Q1 to Q2, down Q1 to Q2. FIR, investigation expenses, and the inappropriate accounting and internal control issues, that has led to investigation expenses. That's the biggest factor for the JPY 2.5 billion decline from Q1 to Q2. Thank you very much. Second question. Going forward, about the funding, what's your thinking? The bond spread is expanding. Bond investors, I think, are anxious. Basically, you carry forward the bonds, and some of the rating agencies have lowered one notch, but you are still investment-grade, and you have cash flow. I think you can say that you're nothing to worry about. Would you be using more bonds, or would you be using indirect finance like a debt? I mean, you established a commit line this time, so you're going to increase that indirect finance. About the new issuance of bonds, the spread in the market has risen. The new bond, we cannot issue because we have filed a financial report with a disclaimer of opinion. With that condition, we cannot issue new bonds. We will not be relying on bonds. As you asked, we will rely on the relationships we have with the financial institutions. We will be making borrowings from them. In the second half, we need some funds to pay for the bond repayment. We have some cash flow and some cash on hand. What is a shortfall? We will borrow from the banks, and we'd like to utilize the commitment lines. Kyoto Bank and others have agreed. What is the uncommitment line? The financial institutions will support us. For the shortage, we will deal with that through debt from the banks. Understood very well. Thank you. Someone from the press, please. The person on the front wall, the person fourth from the right. This is Takasawa of Nikkei Electronic Newspaper. I have one question for you. Under this current circumstance, the amount of the investment, the JPY 140 billion you have recorded for the equipment investment, mainly in India, you have been very active in investing in India. Are you going to make these investments as planned for this fiscal year, or are you planning to have some decrease? If that's the case, which area is going to be decreased in terms of amount of investment? Thank you. Thank you very much for your question. When it comes to this fiscal year and the capital expenditure, there is no change in our plan. Even today, for example, we have had the new Indian facility to be operated by MOEN. We have had the opening ceremony of this new Indian facility run by MOEN Business Unit. We have been actively investigating, and we will continue to do so to make active investment in the battery energy storage type of businesses. If this situation is going to continue, above all, we need to secure a very good cash flow. We are making some decisions on our investment plans. If we can postpone any of these cases, we will try to save as much money as possible by postponing some projects if necessary. Immediately after this situation occurred, I have made a cash-out saving message to all the executives around the world. That's one thing that I made sure that we all do. We will, once again, thoroughly examine our investment projects. That's what we are doing, though, at a deeper level this time. Here's one thing from me, Nakagawa. When it comes to saving cash, we have this third-party committee doing some activities, and we are accumulating some items on the list. We are listing up some items. We are having this zero dividend to our shareholders. We have made a lot of concerns, troubles among our shareholders because of that. We need to disclose what we can do to the public about these money savings. That is all from me. Thank you. An analyst next. Are you good? A member of the press, please. The lady to the edge. Thank you. Furukawa from Bloomberg. Two questions to Kishida-san. After these issues came to light, what kind of discussions have you had with Nagamori-san? How has he been receiving these issues? Has he mentioned about his own responsibility? Can you share? Nagamori-san and Samura, CFO, why are they not present? Because I wanted to hear directly from the CFO. Thank you for the question. Before all of this happened, with Nagamori, I have been making thorough communication. Even after these things came to light, what is our thinking of the executive team, how we're going to move forward, those kinds of things, I have shared openly with him to this day. Nagamori himself, how does he receive this? I cannot answer on his behalf, but the fact that this has happened and every member of the management considers this seriously, and we have to come out of this fundamentally, and we need to take measures. That is my stance on this, and I think all the management agree. Nagamori and Samura, the fact that they are not here, for Nagamori, last year, April onwards, he has not attended these kinds of business results meetings, and I am now the Chief Executive Officer fully responsible for all executive matters. I do not think it is appropriate for him to be attending this kind of a meeting. As for Samura, the main focus of the third-party committee is accounting issues. During the investigation of the third-party committee, he is released of the role of the CFO and accounting. Nakagawa is taking over that both during the investigation by the third-party committee. Accounting line, CFO is off of that line, and Nakagawa is taking his place. Understood. Thank you very much. Person right next to the lady. This is Kitano, Marshall Market. This may be a niche question. You have been very active in M&A, and now you're going to reform your corporate culture, and you're going to have a very thorough reform. Do you have any plan for future M&As? Are you postponing, or are you continuing with your M&A projects, or are you in negotiations with your counterparts for future M&As? Can you bring us the update on that? If you have any suffering from the effects from the current situation on the M&As, what is your future plan or future timing? This designation will be lifted, hopefully, towards the end of October next year, but what will be your timing for your future M&As? I believe your question is regarding our M&A strategy. One thing that I'd like to say here, should be saying here, is as follows. As far as our current situation is concerned, we are not in a situation to expand our business territories via M&A. As has been explained by Mr. Nakagawa, we have even stopped providing our shareholders with dividends. We should be refraining from spending money on those activities, outside activities such as M&A. We are not negotiating or not doing any other activities related to M&A. I cannot give you any details about this strategy, but first, we need to resume our dividend distribution so that we can be back on the normal state. That is what we need to do first. That is my answer to your first and second questions. When it comes to reports, the resumption of dividend, and that should be made first before you resume M&A activities. At the appropriate timing, we will come up with the appropriate strategy, and we will make appropriate revision to our strategy at the appropriate timing. Anyone else with a question? This person over here. Tomohiro from Nikkan Kogyo Shimbun. One question. In the financial results for the automotive, you have a large impairment. For automotive, you have been trying to move from volume to quality, and you have had very good results. This large impairment has surprised me. What about the growth strategy going forward? Any changes there? Talk about the future growth strategy, please. Thank you for the question. Automotive business, future growth strategy is what you are asking about, as I understand it. I, as the head of the automotive business, have been working in the past four years for transformation of the automotive business. What we have been able to achieve, there are some things we've been able to achieve. There are some things that we have put on the back burner. Traction business, major direction shift. The reason why we do that is because we don't have a team that can do large system development. In China, traction business transformation, we conducted a year and a half ago. We felt that we made the appropriate decision at the appropriate timing, and we worked to do what was necessary. This time around, we announced two major things. One, about the inverters. As Nakagawa said earlier, we started around 2021, and January 26th, it's finally going online. We have really had concentrated development, and now the manufacturing cost of the components have now become clear so that we finally come to a stage where we can make future business decisions. Various optimistic assumptions we have not included in making our discussion. As for the joint venture with NPE, in terms of the future direction, we'd like to start consideration. Since we started from fiscal 2025, we've been saying that. Based on that, we have been operating until November, and now new facts have come to light. That's why they have been included. There were those two completely different issues. For the traction business, JPY 6 billion impairment of facilities has been seen. Other than the domestic customer, we have lost some contracts, and we learned that in November. That's why this was included. In terms of future growth, excessive investment leading to impairment, that is what has happened in the automotive business. How we should go about this business going forward is something that we discuss daily. Because we were doing this business, we were able to go deep into the Chinese supply chain. I mean, we have been able to reach the supply chain deeply because of this, and we have slowly built up the system development capabilities because of this. That is going to be a very big asset for our future growth. That is how we see it. How we are going to increase the output from that is something that we like to really think strategically. As soon as we have something to announce, we will report to you in a timely manner. That is all. [Foreign language] Any other questions from anyone? The person on the front. This is Kana Yomiori Newspaper. Thank you. I would like to ask you some supplementary questions to what you have just said, Kishida-san. You have been short-sighted for when it comes to these five different issues, and it is very difficult for you to come up with a conclusion without a report to be issued by the third-party committee. When it comes to these improper accounting practices, the people working on the front line must have been in a pressure to generate a very good short-term profit. They may have been excessively focused on it. Is there any possibility at overseas subsidiaries where these people could have involved in modification or manipulation of their data? Thank you very much for your question. I would like to give you my overall comment, and I would like to have some supportive comment from Minai-san over here. Excessively short-sighted and a pressure. These are the two same things on the same side, in my opinion. As part of our corporate culture, such pressure has existed. That is an undeniable fact. You cannot deny that. Doing the things in the right way is something we should do as a public company. We should avoid excessive pressure. We should not be short-sighted in pursuing a profit. We need to be constantly monitoring ourselves for that. The type of routes for such pressures to have been generated. When it comes to that question, we would like to wait until the report comes out from the third-party committee. This is Mr. Minai speaking. When it comes to pressure, it depends on whom you ask, but some people probably do feel that way about the pressure. Because we would like to wait until the report comes out from the third-party committee. When it comes to evaluation, day-to-day instructions to the fellow employees whom you could depend on for consultation when you feel pressured. Those are the elements we need to identify as part of the root causes of the current problem we are facing. Any other questions? Are we good? With that, we'd like to close our press conference. Thank you very much for attending today. Thank you so much. Thank you.