Ladies and gentlemen, thank you very much for joining us today in spite of your busy schedule, including those of you who are participating online. It gives me a great pleasure to say a few words upon the opening of Panasonic Group IR Day 2022. Mr. Kusumi, Group CEO, explained the medium to long-term strategy of Panasonic Group on April 1st. In the IR Day, CEO of each operating company will explain the key points of initiatives to strengthen competitiveness, including indicators such as cumulative operating cash flow and ROIC. It will give us great pleasure if the presentation by operating companies, which are becoming specialized and sharpened in each business, will deepen your understanding of Panasonic Group. In addition, this IR Day is a first opportunity for each operating company to fulfill their accountability to the capital market participants as a part of autonomous responsible management under the new structure. We like to reflect the voices of the participants to the management of operating companies, which will lead to improvement of the corporate value of the group. Your candid views are very much appreciated. As we have informed you, this is the schedule of IR Day. There will be presentations by five operating companies. This will be a two-day-long event. I ask for your kind cooperation. Hello. So, I am in charge of the Automotive Systems. My name is Nagayasu. Thank you very much for your attendance. From now, I would like to explain about the mid-term strategy, mid to long-term strategy of the Automotive Systems. Today, I have this agenda to share with you. The Panasonic Automotive Systems is located in Kanagawa, headquartered within the area, and globally, we are creating the automotive business to the automobile Industry. And we are working under the keyword of the comfortable, safe, and security and environment keyword. The sales of 2021-2022 fiscal year was JPY 1.671 trillion, accounting for 14% of Panasonic Group. As by 2022, we were pressured with the COVID-19 and have been impacted. However, compared year on year, we have been increasing sales and profit. This is about FY 2022, FY 2021, we would like to summarize the three years. In the past, the automobile businesses have been expanding on the new businesses, and we have been explained to be growing our sales. We have been garnering the position within the market, and we were successful in creating new businesses. However, seeing that the expansion has been very rapid, therefore many operational issues have been becoming emergently seen. As by 2020, we have been changing our policy to prioritize the profit creation, and we have been working, responding to our challenges, especially about the front-loading of the process for making decisions. And after the order was awarded, we have been totally renewing the processes so that we will not be following into the same kind of problems again. Because of this improvement, as of 2022, the cross-sell excluded at the beginning of 2022, the adjusted operating percentage of sales have improved until the level that we can now aim for 5%. However, the demand of the automobile is changing, fluctuating, and we're hit by an increase of material price and logistical expenses. Therefore, as of 2022, we have been in the surpluses. However, we have to shore up our profit and loss. In order to respond to that, we are going to be working on some initiatives in order to make us stronger. After this, I am going to be explaining about the policy for the mid-term. Before that, I would like to explain our ideal vision. As a company, we are working under the autonomous management, and we have set an ideal vision. Because we based on that, mission, vision, slogan was factored in. Mission is, as you see, the Heart motive. Here we have a video for you to see. [Foreign language] Panasonic Automotive. Thank you very much for viewing our video. These are our philosophy underneath our operations. Without a doubt, this is about the market condition. The global production of cars is now recovering, is what we assume from 2023 and onwards. However, we do consider that the shortage of parts and materials, including the semiconductors, are going to be lasting, and we are going to be focusing very closely on the risks of the fluctuations of the production. The electrification has been exponentially accelerating starting around from 2022. Therefore, we believe that around 2030, 30% or more will be in electrified vehicles out of the new cars, is what we forecast. The infotainment-related trend, which is our big pillar business as well, and along with this, the design and the development of cars are also changing. One change is the integration of the ECU, the IVI, which is our core system or business, is going to be integrated with the meters or HUD and to advance into CDC. Other changes is the separate development of software and hardware. It used to be that car manufacturers towards Tier 1 companies have been ordering development in bulk for software and hardware. However, they're going to be changing, and they're going to be giving separate development, EV electrifications of the cars and autonomous driving, meaning that software's value add is going to be even more important. The car manufacturers are internally trying to develop and produce software these days. Therefore, the key issue is for us that how the Tier 1 could be wedging into the car manufacturers to be contributing to their software development. This slide is the result of the questionnaire that we have taken in the past. This is about the small daily wants that the driver and the assistant side people wanted for the car ride. This questionnaire was taken in 2018. Therefore, maybe people's interests have been different after the COVID-19. However, what they were saying at the point of 2018 was that there are high expectations and diverse wants for the car cabin. Looking into the keywords, you can see that many of the issues are coming out for daily life wants. So we would like to be standing closely to the users, and we would like to provide solutions that only Panasonic can provide and to make the car ride more enjoyable. Next, I will explain initiatives for FY25. COVID-19 started to spread from the end of FY20. Various risks materialized in FY21 and FY22, such as shortage of semiconductors. As a result, sales dropped sharply from the forecast at the beginning of the year, which hurt the PL. Based upon this situation, we placed the highest priority on enhancing operational capabilities for three years. So from FY23 and three years, we need to give priority to strengthening operating capabilities. On the other hand, business for the next three to four years have already been awarded. This fiscal year, we will be conducting business pursuit activities and proposal activities, which will impact the sales of FY26 and onwards. We have been strengthening the operational capabilities, but we need to also increase the capabilities to respond to changes, and we will enhance competitiveness, including ordering and business pursuit activities. These show specific activities for strengthening operational capabilities. We will be setting target KPIs to monitor the progress in both development and mass production. For example, KPI for development efficiency is productivity of software development and number of architects. There are a number of factors to improve development productivity, but the competitiveness of the upstream process is the key. As the software development becomes more complex and larger scale, the role of architects becomes more important because they will be designing optimal method and structure of the program. We will be enhancing capabilities to respond to change by increasing competitiveness of development. Mass production, we will be conducting these three activities and reduce lead time of production, which results in increased competitiveness. Next, forecast for FY23 and target for FY25. In FY23, we will be increasing revenue and profit and further improve profitability. The risk of automobile production fluctuation exists, but by increasing operation capabilities and price adjustment revision, we will aim for JPY 18 billion of adjusted operating profit. Towards FY25, the growth of sales will be at the same level or slightly increased, but we will be able to increase profitability by increasing operational capabilities. Adjusted operating profit, excluding cross-sell on our development production basis, will be higher than the level for the segment as a whole. From FY22, the semiconductors are in shortage. In order to secure products, we have strategic inventory. By reviewing supply chain, we will optimize the level of inventory. In this way, increasing profit and optimizing the level of inventory as a result in FY25 will target the cumulative operating cash flow of JPY 200 billion and ROIC of 8.5%. We will generate and make investment for growth. We will have such a business structure. Next, I would like to talk about the direction for FY31 or calendar year 2030. Shift to EV will accelerate and change of technology mounted on cars changes. As you can see, one through four, we will be addressing these four areas. The first one, evolution of cars. We focus upon integration solution and EV innovation products. Two and three, providing value that stays close to every person, we will make proposals to add more value for mobility. In the area four, in addition to outright sales business, we would like to create new service businesses. Going forward, value of automobile value chain is expected to shift from sales of new vehicles to after-sales services. We have already started offering service business such as pickup services. We launched a new business promotion division reporting to me in April, and we would like to create more service businesses. Environmental contribution is a foundation of all our activities as a responsibility of Panasonic Group. We make it a source of our competitiveness. At this point, we are not at a stage yet where we can tell you the size of sales we target for calendar year 2030. It's not the case that increasing the size of business comes first. We place the highest priority on enhancing capabilities to respond to changes in management environment and increase profitability for the next three years from FY23. With the evolution of technology, automobiles are no longer mere means of moving, but also in relation to lifestyle and work style, interests and values expand to how the time is spent on an automobile as a part of living space and time. Our strength lies in devices and evolution of system technology with support evolution of automobiles, which are rapidly electrifying and software oriented. So we have access to various human resources and also various technology and data. Cockpit integration solution and EV solution as core, we will contribute to sustainable mobility society so that we can support the well-being of environment, lifestyle, and work style, which Panasonic Group aims at. One through four, I would like to explain in more detail. First, number one, contribution to evolution of automobiles. In automobile cockpit integrated solution, we will focus on products such as IVI and HUD. We will enhance CDC business, which is a core solution. We are already awarded the first order of CDC. Cockpit is an area where the size of software development is dramatically increasing and becoming more complex. In addition to the ability to build a system framework in anticipation of move for integration, several years ago, we have equipped virtualization technology. We have been collaborating with IT players and car makers to contribute to the evolution of the automobile technology. In addition, for visibility of the information for drivers and ease of use of devices, we will offer UI, staying close to people, and enhance UX. We utilize power electronics technology and contribute to the expansion of the EV market with chargers and devices. Especially, we have the strength in high output onboard charging system device. We reflect upon the charger project in Europe, which incurred loss. On the other hand, we have obtained lots of things that we have learned from development and production. We are one of the two companies globally which can supply a lineup of high output onboard charging systems. We are not certified by being a mere supplier. We will become a technology partner to solve users' problems such as charging time and contribute to society where EV will be further increasing. Next, two and three is to provide value that stays close to every person as interest is increasing on the way how people spend time. We are making proposals to add more value. As a proposal, we make forecasts on changes in people's lifestyle and value and style of mobility and calculate it backward to business outlook. From such exercise, ideas for new solutions came up, as you can see here. We are not able to explain the details yet, but development is starting from the evolution of automobiles. We have the development from the perspective of people so that we can deliver confidence and a sense of peace of mind to people. This solution is shifting from testing to specification phase and then to commercialization phase. Lastly, environment. Panasonic Group is committed to achieve net zero carbon dioxide emissions from all the operating companies in FY2031. The PAS aims to achieve net zero CO2 emissions from all the main Panasonic Automotive Systems sites in FY23, and this includes energy procured from outside. So we will be reducing the amount of energy consumed, and also we will be increasing the use of renewable energy, not depending upon non-fossil fuel certificates. On the other hand, in Scope 3, we will contribute to the reduction of carbon dioxide emissions by the society. We will do this by power saving of our products and improve environmental performance, such as saving resources and creating a mobility service business. Panasonic Automotive Systems places topmost priority on stable revenue growth in the next two years. By doing so, we would like to gain your confidence. I thank you very much for your kind attention. From Nomura Securities, Okazaki-san, please. Thank you very much. This is Okazaki from Nomura Securities. I have two questions. One is about the development expense. I would like to understand the philosophy behind this. So the effective development is going to be contributing to the operational efficiency. However, it seems that more than ever, the development cost has been inflating more than your assumptions, and you say that your order is sustainable in the long term. However, do you think this initiative that you are going to go through is going to be decreasing the cost, or when it happens that the cost is going to be inflating much more than expected, what are you going to be doing? Second question, the completed cars and the Panasonic Automotive Systems, what is your relationship? The business models are changing, is what you have just mentioned. So are you going to be closely working with a very small number of car makers, or are you going to be open for a large number of automobile makers? Or else you could be tagging together with other car manufacturers like other parts of the regions are doing within the world. So what is your way of going forward, please? Thank you very much for your question. The first question about the development expense. In the past, as you say, especially within the Europe project, there were big challenges for the development cost. From our fixed cost, controlling the development cost was one of the biggest priorities. To tackle that, the software is going to be meaningful. So you've been seeing the chart. And to decrease JPY 10 billion of cost for development within the two years, and we have been achieving that target. And we're now revising overall the processes. So within all architectures for everybody, so it is more efficient and effective by three times within every architecture. Especially the software development and the infotainment services, we are now focusing for such efficiency, and we have been creating such schemes. And it is going to be now exported to the hardware businesses too. In that sense, going forward, the overall picture of the development cost, basically, we think that we are over the peak. So from here on going forward, basically, we are now securing the business. Therefore, we will be spending development costs at some level. At the 2020 fiscal year at peak, then we are going to be trending and decreasing the cost. I think we can manage. That was about the development cost. For the finished car makers and the relationship was a question. I think it is about the strategy for customers. Our automobile business is based basically on Japanese manufacturers. Sales-wise, 60%-70% of our product is destined for Japanese manufacturers. So within the area where we can be competitive along with the customers, we are working to co-create with the customers. We do not have any intentions for the customers where we cannot co-create with others. In the CDC area, I just said that we have been awarded a project, and this one is not coming from a Japanese company. But utilizing their asset, this is going to be connected to the next business. And I cannot name the customer's name yet. So we're not narrowing down necessarily to Japanese companies. But in order to utilize our co-creative capability, we would like to work with such customers where we can work together. So I would like you to understand that. And yes, the Honda and Sony, I do understand. And I get a lot of questions where Panasonic is going to be making cars or not. So we do not intend to make any automobile vehicles that are running on the streets right now from Panasonic. But we have been mentioning about the cabin space solution. So meaning that this is the cabin space itself is a value where people are going to be driving, traveling, which is all about the UX part of the car vehicles. And within that area, we would like to create a Panasonic life car. That's what I'm always saying. So rather than making a car, it's for us to contribute to produce a car cabin and to connect it to the lifestyle. That's what we are discussing in-house. So I think those are the areas where Panasonic can contribute. And that means the position of the Tier 1 and car maker is not going to be a relative going forward. It's going to be probably like Panasonic being a presenter of the cabin. So I hope I answered. Like to move on to the next question. Once again, BofA Securities, Hirakawa-san, please. Hirakawa from BofA Securities. I have two questions. First question. As I listen to your presentation today, environment seems to be supporting the mission of Panasonic. Panasonic's environment products and strengths as compared to competitors. And in the sales out of the sales, how much does that account for the total sales? That's my first question. Second question. Without cross-sell, the profit level is high. But how large is the cross-sell? And the profitability of that is how much? If you can explain. These are my two questions. Thank you very much for your questions. Automotive Systems contribution to the environment. Reducing CO2 emission from our business. That is Scope 1 and 2. Three and 1, we would do this. But when it comes to products in our business, for example, products used for EVs lead directly to contribution to the environment. For EVs business, the proportion is not that large yet. However, as I mentioned earlier, high output charger system, this business started a few years ago. We are competitive globally, and we are making preparations as the EV spreads. EV is sure to be disseminated and spread. But there are issues that need to be overcome. People who buy and use EV, for them, what is the largest solution? It's the charging time. How to shorten the time required for charging? This can be solved by power electronics technology. And our high output charger will play an important role. For example, in Europe, the charging infrastructure is changing. In order to reduce the time required for charging, vehicles become higher in pressure. And 800 volts is very large. Then chargers should be there to respond to high voltage, which will result in achieving a reduction in charging time. And we are trying to address this. I hope that answers your question. ごめんなさい. Sorry, but question about cross-sell. Ratio of cross-sell. Approximately 15%-20% is the ratio of cross-sell. The actual amount, please use the microphone. Now, earlier in your presentation, you said if it had not been for cross-sell, you would have achieved 5%. I think you referred to that. So can you explain once again your thinking behind this? This is we procure and then sell. So from the products of other operating company of Panasonic is sold by us to OEMs. And marginal profit ratio is low because this is margin business. I cannot be specific. But the margin is low. However, certain margin can be enjoyed. That is a type of business. Thank you. はい。それでは次のご質問を。 Now, next question from the floor, Morgan Stanley. Ono-san, please. Thank you very much. This is Ono from Morgan Stanley Securities. I have two questions. So the first one. So, about the source of your profit going forward and sales structure, how are you going to be expecting that you are going to be trending in on your materials, page two? It says details of current sales, and you are now negotiating around 2025 with the car manufacturers. As far as you can see, how is the sales mix going to be in the year 2025? For the new businesses, is the new businesses going to be replacing your current business? Another one is that the high output energy is something I really feel. For that, I would like to know about the scale of the market or how much can we expect the sales out of this market. About the competitors, you mentioned that there's one competitor so far, and where is your competitive advantage currently? Other than the two companies, are there any companies that you are considering that there might be some new entries? If you consider it low, please show the background logic. First of all, about the sales mix in the future. This is the automobile cockpit area where we opened and the automobile electronics. The automobile electronics is all about chargers that I have been mentioning. Ficosa is also included. This is 50-50. For 2025, whether or not the sales ratio or mix is going to be changed was a question, but I don't think it is going to be changed so big. The half is coming from the infotainment automobile cockpit system, is how I would like you to understand. You mentioned about charger in 2030. The 30 million EV cars was shared as our expectation. We share this number generally. So whether this is achievable or not is something of a different topic. But out of this, as a high output, the output ratio, when the output is lower, this is going to be like EV, which is inexpensive, mainly seen in China. And 9.6 kilowatt or more, that's where people see often in North America. And it often ranges around 10-11 kilowatt. And in 2030, half of these are going to be more higher than 9.6 kilowatt. And we are aiming for that high area. The low end, 7.4 kilowatt, is something that we are not focusing on. At this current point, the number itself is small. Therefore, maybe when I talk about share, it might not be referential. But as of today, the battery charger share is about 15%. Thereby, let's say if we're trending around 15% in 2030, then it is going to be 15 million at 15% of 15. And please calculate. And maybe the unit price may decrease. But it is going to be a fairly large scale number. That is how we understand. And about the new entry, are there any competition making the market competitive? Yes, that could happen. As already shared, right now, we still have two right now, as of today, competitors remain two. And until around 2050, the challenge is making this kilowatt higher, like the 10 kilowatts or higher. And that place we're on a very lead. And then going forward, the 800 volt is going to be the crucial keyword for us, utilizing the device technology and the circuit high area. Those areas, if we are going to be able to differentiate ourselves, I think we can win over the market. Thank you. では次のご質問. Moving on to the next question, left-hand side, Citi Global Markets. Ezawa, please. Ezawa from Citi Global Markets. One question. I have a question regarding the numbers. ROIC, FY25, 8.5% is the target. And the actual result is 1.6% now. Big gap. So proportionally, there will be improvement in three years. Is that how you are going to achieve 8.5%? Or the curve is going to be different? It's not clear to me. So can you please give me a guidance? That's my first question. My second question also about ROIC. In your explanation, you said that operating profit and EBITDA margin is also shown in the material. Why ROIC is important for the automotive system? Can you explain? 8.5%, what is it? As a level, do you think this is a low level? Or as an automotive business, 8.5% ROIC is rather high level. How are you going to achieve 8.5%? As I look at the chart, operating profit will incr ease, but the margin will become more flattish. So how is ROIC going to trend? Can you please enlighten me? Thank you very much for your question. Basically, ROIC is adopted by us because we are able to show with this our core business in that sense, efficiently generate profit from that perspective. Automotive is the denominator of ROIC remains mostly unchanged, whereas the numerator, operating profit amount, will increase going forward, which results in improvement in ROIC. That is the picture that we have in our mind, then in the next three years, what would be the curve to achieve this? I cannot disclose the specific numbers, but FY23, the environment is going to be tough and a slight improvement in FY24, but then similar improvement in the following years. 8.5%, is this a good level or not? Is that competitive or not? It's a very difficult point to explain. Competitors who disclose ROIC is not that large in number, but there are some numbers disclosed by competitors. So automotive business, but compared to Tier 1 business area is different. So you are not able to make an apple-to-apple comparison. But double-digit percentage point is what we aim to achieve within our equity, shareholders' equity. We will be making investment, and 10% level will be aimed at in the medium term. We would like to aim for double-digit in medium term. I hope that answers your question. [Foreign language] Next question. So from the venue, Nakane-san from Mizuho Securities, please. This is Nakane from Mizuho Securities. So it's a continuation and follow-up question on page 14. You have a target value. And the sales, I think you are thinking the sales is going to be slightly growing. And you are mentioning that the development fee is going to decline. But other than that, everything is going to be better, including whether it be the charger or the ergonomics. And the HMI system, other than the info system, the Ficosa, and the automotive system, I would like to also listen to your improvement plan too. And the second question is about the regional policy strategy. So you mentioned that in FY2020, you mentioned your policy, but is it going to be changing in FY2026? And if so, why? So it's going to be making it unclear that you have acquired Ficosa. So I would like to know about the significance of Ficosa. And I would like to share with you about the benefit of the cost. Thank you very much for your comment and question about the improvement of the operating profit. I think you're wanting to know about the improvement and the details. One is about the we're going to be with the strengthening operational power, fixed cost is going to decline. And taking the three years ahead, these are going to be our key initiatives. While saying that, HMI and the automobile system is going to be improved, and HMI especially. Regarding the profitability, we're now having some struggle with replacing our product. Low-profit product or the product which is in the red is going to be replaced with more bigger businesses. The portfolio is already replaced. So it's going to be impacted from that area. The automobile system, especially the camera and the sensor devices, the camera has been strengthened very much. The camera device, the unit price strategy has been better. Therefore, there's going to be improvement here. You mentioned about Ficosa. Regarding the company, right now, the profitability is a challenge. The biggest factor is about the higher material and parts increase. Overall movement regarding the raw materials, basically, is going to be handed over or passed on to the pricing in FY25. The first quarter, we're going to be seeing the impact. Therefore, Ficosa profitability is going to be steadily improving. Now about the value of the company. For the customer portfolio, we had two aims to purchase this company in order to expand the portfolio of the customer side. And the other one is the synergy, such as the electronic mirror, and have a synergy shown there. And the synergy within the ADAS. Those were our expectations in order for us to go on with the merger and acquisition. The portfolio itself, of course, the portfolio currently is still dominant by Japanese, but then the European manufacturers are a trendsetter. Therefore, in order for following up the European customer, I think Ficosa-san is valuable. Electronic mirrors, as you all know, we are already taking some shares. This is a result of working along with the company. Therefore, we do find some effect for the synergy already. However, at current point, we would like to improve the profitability as soon as possible and to regain. Well, so we would like to collect what we have been invested in. はい. The time is running short, so we'd like to entertain questions from two persons, one each. Yes, the one from UBS Securities. Yes, from UBS Securities. Software area, headcount, and the size of the business area, if you can explain. The intention of my question. The software is compared to hardware. The speed is fast. So cockpit software development, are you able to differentiate yourselves against competitors? I may not have sufficient knowledge. Panasonic is trying to differentiate yourselves in software. What are the areas that you are going to differentiate yourselves? The size of the developers of software. We are not disclosing the numbers. The size, headcount, rough indication, that hint so that we can sort of understand. I'm sorry. Internally, and also there are some that we are sourcing outside the company. So combining both. Yes. Well, please excuse me. Percentage-wise, single digit or double digit against the total headcount software. Well, development out of the total development, the proportion of those engaged in software. Please wait. I'm sorry. And where are we going to differentiate ourselves against competition in software development? For one thing, cockpit becomes more integrated and becomes more complex and becomes cloud-native and the connection to outside. Then one thing that I can say is with IT companies, how can I say, collaboration with IT players, I am disclosing this. For example, our relationship is Google. We were ahead of others in establishing relationships with them. Always as Google is introduced and the relationship with IT players, both for hardware and software development, we have experienced that we can be in advantage because we are ahead of other players. Google is one example, and the other OS IT makers that I cannot disclose the name. We are moving ahead of others so we can be differentiated here. And then in my presentation, I talked about car makers developing software themselves. It is. So they are approaching us together with working with car makers and develop. So this will become an area where we co-work with car makers. So how we can make a business model out of that and add value is the key. Cockpit software is to be integrated into hardware, and this is indeed difficult more than is expected. So this is an area that we can differentiate ourselves against competitors. Now, the first question. Just a rough image. About 30%. Thank you. それでは最後にご質問を受け。 This will be our last question. SMBC Nikko Securities, Katsura-san, please. Katsura-san, please. Thank you very much. On the slide, page 12, I have a question to pose. So you say that the sales structure in 2025 is not going to be changing much. And going forward, the activity is going to be for three years further beyond. So it is about the initiatives for FY 2025 and how you are going to be working is going to be crucial. So how do you take and understand the future? You just mentioned that you would like to have a double-digit for ROI. And when saying that, are you going to be growing the business of the cockpit with such a margin? Or else maybe with the automobile electronics in order to secure ROI, maybe the electronics for automobile could be worthwhile better for working. So what do you think? So in conclusion, both of them are increasing the profitability for the cockpit. The CDC is going to be replaced from the IVI, so having a higher value add and be replaced by CDC is therefore the profitability is going to be higher. That's one thing. Another thing, for instance, the cockpit, and we have the head-up display. This is going to be increasing, so within the world, currently, we are ranked around fourth to fifth, but steadily, this is going to be ranked up to number three in the world, and the head-up display, we are going to be ensuring our position and to expand that we can do. Another thing is about the battery charger and the EV-related businesses, so it is probably happening around the last leg of FY 2021. Thank you very much. With that, the Panasonic Automotive Systems explanation will be finished and closed. Thank you very much. Good afternoon. Thank you very much for coming from out of your busy schedule today. I am Sakamoto from Panasonic Industry. Today, I'll be explaining these three points. First, from April this year, we started as an operating company. Panasonic Industry outline. They will be explained. The number of employees globally is 44,000, 13,000 domestically, and 31,000 abroad. The number of bases is a total of 84, 34 in Japan, and 50 outside Japan. The position in the group sales is JPY 1.1 trillion, which accounts for one-seventh of the total. Adjusted operating profit is JPY 87 billion, which is about one-quarter of the total of the group. FY 2022 results and the forecast for 2023. FY 2022, good performance of capacitors and industrial motor, which resulted in an increase in both sales and profit. In FY 2023, we are expecting an increase in sales and profit for the Panasonic Industry products. Panasonic Industry products excluding cross-sell. So as you can see, including cross-sell, JPY 1.1314 trillion, which was 115% year-on-year. But excluding the cross-sell, JPY 920 billion, which is 118%, and the adjusted operating profit, JPY 80.6 billion. And we are excluding cross-sell. So industry globally has a wide platform. So by having the products of other businesses, we contribute to the total optimization for the group as a whole. But looked from analysts and investors, in order to show our strengths, excluding cross-sell would be the easier number. Therefore, we are explaining in this fashion. The midterm objective for FY 25 sales, we aim for JPY 1.3 trillion, adjusted OP, 12% or higher. If the margin is 70% or more and free cash flow of JPY 80 billion or more, cumulative operating cash flow will be JPY 390 billion or more, ROIC of 20% are the targets. With the next slide, I would like to explain the background. I said FY 2025, JPY 1.3 trillion is the target. In 2030, we target JPY 1.8 trillion yen sales. In 2014, in nine domains, devices, AIS Company, it was integrated into one company, AIS, at that point. As you can see on the left-hand side of the graph, rate of core business was only 20% of the total. Sales was about JPY 1.4 trillion yen, already included. OD, optical pickup, DVD, drive, these were included. And these are no longer mounted on PCs now. And the liquid crystal display, semiconductors, many businesses which were faced with challenges. And in eight years, we have reshuffled our portfolio. FY 2014, there was JPY 1.4 trillion yen, but we are about break-even in FY 2022. Core business started to account for 50% of the total. And JPY 1.1 trillion yen in sales. PID only 8.8%. We have come to this level. The key point is here. Core business, majority of the resources are focused upon core business. And 20% of the core business became 50%. CAGR, 7% growth in core business. In 2030, 1.8 trillion yen. This seems like a high level, but CAGR used to be increased by 1 percentage point, and we'll be able to achieve this. Although this is a high target, we aim for that and would like to move. And this is not a reckless target. This is a high target. But we believe that this is a level that can be achieved. Next, please. Later on, I'll be explaining the core business in more detail. Where are the focus areas that we'll be addressing? Potential is high, that is to say, appropriate demand and growth can be expected. Furthermore, there are strong requests and demands from the society, and continuous evolution is required. In other words, needs of the customers are niche. We are focusing upon this and would like to promote our business. We have been working on that in the past eight years. The priority areas are, as written here, three. One is factory labor saving, as you know. In China, there are fewer children, and the labor market is decreasing. The sophistication manufacturing and a global issue with a shortage of skilled workers. With our products, we would like to make contributions. I'll be coming back to this later on. This is an industry CAGR of 7% is expected. Likewise, information communication infrastructure, the data center and the base stations. For that, we'll be providing our values. CAGR, 10% for this area. Likewise, automotive. In total, with Shanghai's lockdown, there were difficulties, but we are only doing China-related automotive business, and the automotive CASE, CAGR, 37% is expected, so the market is certainly growing, and in that Process of growth, their customers' issues, and there's room for us to make contributions here.[Foreign language] Next, about the core businesses, I would like to go one by one in detail, so I've been mentioning about the focal area of our business is focusing on how we can contribute in order to, by utilizing our strengths, and we're starting from the FA solution. Based on the compact servo motor, which is in top share, we would like to expand the solution businesses, which is supporting the IoT connectivity. Our business is mainly about selling hardware, in effect. For the very first time, we are stepping into the FA solution to have it into the center. The goal of the FA solution is it doesn't have to be our motor or our sensor either. However, those customers who have some problems, we would like to provide a package. With such business, then I think it is going to be a real solution in a real sense. We are undergoing some testing and verification. The market is the Chinese equipment market, which is growing very rapidly. This is connecting lines or connecting plants and plants. However, we are focusing on the machine builders. The machine builders within the Industry 4.0, they are having a difficulty how to connect with the higher layer for the equipment manufacturers, small and middle. We are going to be providing them some methodologies to connect and to provide a packaging for us to become valuable. Specifically, it is shown on the underneath chart. The core is going to be the compact servo motor base, and within the Chinese market, we have a share. Therefore, based on that position, we are going to be stronger in the sensor and create a packaging. Concurrently, the Chinese market is changing rapidly. Therefore, SBU has been relocated to China in order to have a faster decision-making last year. However, more than we have assumed, the market is moving. Therefore, we have now started this organization in BU, starting this April and in China, and next year, April, the motor or the sensors is going to be worked in an integrated way. We are going to be creating an organization to be able to make decisions and create in China, including the POC. Next is about the electronic material. The MEGTRON is the product name, and this is the high-functional multi-layer material. Going forward, in addition to that, the materials for the semiconductors, we would like to nurture this into new bigger pillars. As you already know very well, the communication speed and the Processing capability is becoming advanced. Therefore, high-speed transmission substrate needs are expanding. Regarding semiconductor, around 2026, including 3D, things are going to be becoming much more complex. Therefore, the materials surrounding the semiconductors, it used to be that semiconductor company has been asking for the spec for each of the manufacturers. However, we consider that it is going to be difficult to just handle several materials one by one. Therefore, with the layer that we are handling, the manufacturers that are beyond up and lower of our material, we are going to be cooperating with these companies in order to cooperate and contribute to the clients. That is the system that we would like to create. Fortunately, the substrate of ours is used in the main model within the larger customers. Then it is going to be used layer by layer. This is already decided. Therefore, teaming up with other companies, we would like to go forward with going forward beyond 2026. This is EV relay. Regarding EV relay, the market share, we are accountable for 40% or more. Based on the strong EV relay, it is going to be our centerpiece. As Nagayasu-san mentioned, the electrified vehicle is going to be increased, and the high output is going to be unstoppable. It is going to be continuously. Therefore, the needs for high-speed disconnection when there is some abnormal situation is going to be expanding. Therefore, with the relay, I cannot say in detail, but then adding on with the EV relay and creating module, adding some factors. So we are going to be preparing for winning and competing within the area where we are working within the single area. And by blackboxing the know-hows, we would like to go higher into the higher end and utilizing the additional technology and have a higher output, and an immediate disconnection should be realized. Next is about condenser. Utilizing unique materials and Process technology, we would like to cater by narrowing down into the area where general use condenser or capacitor cannot respond. This is going to be a high-performance, high-reliable capacitor, and the needs are rising every day for the information communication infrastructure and automobile. By advancing this, we would like to differentiate ourselves regarding the materials and Processing technology, which is going to be our source of income and source of differentiation. Within the area of communication infrastructure and automobile electrification is going to be where we are focusing. xEV film capacitor, film capacitor bank. We enjoy 40% or more of the shares too there. The key is that we would like to strengthen the source of the differentiation and to be sharpening ourselves in other areas where other competitors cannot come in. We are working on the single device, which is around 50%. For the assembly product, it is also around 50% in around 2030. The operating profit, 15%, is going to be one of our targets. For materials, we would like to aim for 20% or more and 10% for the assembly businesses. By attaining this, the operating profit margin rate is going to be achieved with the goal. The key is how much are we going to be launching the investment by not impacted much by the economy and its fluctuations. So regarding our investment, it's around 7%, the average of the industry. And out of the 7%, 1%-2%, less than 1%-2% is about coming from the factory technology. And we would like to, regarding the materials, Materials Informatics, and regarding Process Informatics, new technologies should be incorporated. And we would like to draw 1% in order to raise our technology in order to keep up with the investment and to follow up with the demand. So not irrelevant of the economy, we would like to keep on with the work for development. Next is about our work initiatives for the environment for the future, sustainable future. Within Panasonic Group, in the same way with energy, we are focusing on the emissions and recycling. The CO2 emission is a very high area where the Panasonic Group works on. So the Processing, we are going to be having the Process, the pre-Process left in Japan to focus on the emission decreasing. We believe that we have a big responsibility as a group. As a group, the CO2 net zero is a commitment that we have been making for 2030. Regarding the recycling rate of the resource, we are going to be holding the 99% or more as our target and to realize this. And for scope three, we would like to make our product smaller and lighter and with lower loss and have longer life. Having based on that, we would like to go on with our development. Specifically, this is about out of the 55 local productions that we have, 17 have been already incorporating the solar panel. But solar panel cannot cover all of our energies yet. And regarding the energy savings, we are going to be working continuously. Specifically, as mentioned in 2030, this is net zero. And in order to achieve that in 2031, we have 11 manufacturing sites in China. And for those 11 sites, we would like to achieve net zero by FY24. And that is going to be expanded to North America and Asia. And Japan and Taiwan, we are focusing on FY31 as a target here. And we are going to be following the step in order to achieve net zero. That is all from my side. Thank you. Yes, from the Main hall. Nishimura-san from Credit Suisse Securities, please. Thank you. Nishimura from Credit Suisse. Thank you very much. I have two questions. First question is about your core business. In order to further strengthen core business, M&A, what you're thinking about M&A to strengthen this? Increasing number one, is that what you're going to do? Or those in number two and number three, those that you would like to grow, are you going to further conduct M&A to supplement the areas? My second question, moving toward the module and package solution. In the past, you have been doing various implementing measures, but you have been focusing upon this. And what are the areas? What are the challenges? And how are you going to overcome the challenges to differentiate yourselves? Thank you. Thank you for your questions. First, expanding core business. And are we going to use M&A? And if so, what is the thinking behind M&A? Always, we are open. Just simply buying number two or aiming for size, that is not our intention at all. Rather, we have the element technology that we do not have or the companies that can supplement us, complement us. If there are good proposals, we will do so. We are always watching with a long list. There's nothing specific right now. So rather than scale, the accumulation of technology, from that perspective, we are conducting research of the opportunities. With regards to module and package, and what are the challenges? And how are you going to address these going forward? In the past five years, size has expanded greatly in Europe. Relay package system that I explained earlier, this has expanded significantly. Also, DC-DC converter, this is also in Europe. In Slovakia plant, we are doing this. This base. Just pursuing this, then we are not able to win. That is just collecting parts and assembling, then we are not able to compete against large. So devices which are in there are unique, and we can differentiate ourselves. That is the key. We have a key device inside and adding value and make it as a system so that we can compete in areas which are different. Compared to devices, the marginal profitability is different. So it's attractive, but just looking at profitability or margin, it might be slightly lower. よろしいでしょうか。それでは次の質問。 Going on to the next question. Nakane-san of Mizuho Securities, please. Nakane from Mizuho Securities, thank you very much for today. I have two questions. One is about short term. Last year and this year's plan, you're sharing a very fantastic number, so I'm very happy. But then having said that, the automobile and communication information in various areas, the parts and semiconductors, I think you're delivering before the procurement, and you have enjoyed the sales and profit this year. However, including your inventory, I would like you to explain what the condition is, including your customers' inventory. Is it at a normal level? Or if not, how are you going to be making your procurement? And second question, I am very much expecting high on the semiconductor, about the substrate and others. But I would like to know much more in detail about the product and the boundary of the target and the number of the FY24 target. Thank you very much for your question, Nakane-san. Regarding the overall market condition and how we consider, I would like to share our understanding so the demand is, as you say, it is happening that we are delivering before procurement, and this is becoming evident in China and Europe. Mr. Teraoka is going to be sharing about this in detail, and we acknowledge the risks. That is now included within the plan. About the inventory in our side, we are narrowing down within the area that we are going to be working. The general purpose product is actually smaller. Even if we are working on single product, these are narrowed down onto a profitable product. Therefore, within our supply chain, we don't have an inventory. That's one thing. Anything for me to share, Teraoka-san? Yes. Thank you very much for your question. Two weeks ago in Europe, I've been going through and visiting to understand the condition. The inflation stagflation is occurring. The condition is becoming worse. The local distributor has been saying to me that around this summer, there's going to be a tide'll change, as you mentioned, for the supply chain inventory. The EMS may have some inventory. As Mr. Sakamoto mentioned the automobile, the Europe is decreasing production. However, we are to follow them up, and the consumer side and the ICE is slowing down. However, the notebook and the hyperscaler product is having a favorable condition for servers. Therefore, we would like to focus closely, and the second issue is about semiconductor material, the base station and the data center, the Substrate MEGTRON. We have other products, and we are already working on this, so we are now working on the next type of semiconductor material. We have been sharpening on that front end with the semiconductor manufacturer within the major companies for the main material. They are adopting our substrate, so how we do the FY2025 is that we are 100% B2B, and the boundary we have been narrowing down into a boundary where it is much more visible. And going through the Shanghai lockdown and Lehman fiasco, when such a big event happened, that is something otherwise. However, for FY2025, this is not something that we think it is an unrealistic number. So we are creating this plan based on the plan of our customer. Therefore, for FY25, it's just the number that we have reported to you. And for FY31, we have just discussed about the semiconductor. Semiconductor has various players in various levels, and every company is undergoing with a good management. So it is not an area where M&A is easy to do. However, the heat treatment problem was there. And it used to be that semiconductor companies have been ordering about the temperature. However, now the semiconductor industry is becoming much more sophisticated, and the demand is becoming much more detailed. Therefore, it's no longer the case that when there's the instruction and when we follow all the problems, such as noise or the temperature issue or distortion, we'll go away. There's various problems entailed to this. So it's not just about M&A merger and acquisition. And as mentioned, they are all having a great management. Therefore, we could be calling out to the industry, to the player near to our layer, and we are starting to do so to let us join hands to work togeth er. So in that sense, in FY31, we are stretching, but not to the extent that it is unrealizable. Thank you. Now participating online, Goldman Sachs Securities. Harada-san, please. Harada from Goldman Sachs Securities. Can you hear me? Y es, we can. Thank you. I have two questions, if I may. The first question, numbers. Page seven, you have shown FY22 to FY31, the progress of sales. Core business will be increased. I agree. On the other hand, non-core, great portion. As I calculate, this will be flat, more or less. Conversely, the share is already high, so there may be no factor to decrease the share. But if there's any possibility for decreasing the share, what would be the area where you might see decreasing share? That's my first question. My second question, if I may. So far, you have been doing selection and focus, which resulted in high share and high profitability in your business. On the other hand, from the perspective of value of your businesses, for instance, competition by Chinese players, and the share is lower, but many of them have high valuation. As you have to compete against these players, the capital power and the speed in the current business structure. Is there anything that might be dragged, any challenges that you envisage? Value of your business. You have such excellent business, but in spite of that, you are not highly valued or appropriately valued. What is your thinking about that? Thank you, Harada-san, for your questions. First, the great portion. Are there risks in this area? I think that is your question. As I said at the outset about the big risks, we have already addressed the risks. Last fiscal year, in December, liquid crystal business has been already liquidated, and we are taking care of the factories, which will be eliminated from next year onwards. In that sense, remaining 50%, what are they? The size is relatively small and relatively stable business. Inductor for automotive ECU. Globally, we have a high share, and we are supplying to all the major tier-one companies. So size-wise, slightly less than JPY 20 billion, but profit-wise, sufficiently, we have the profit in the JPY billions. So reshuffle of portfolio is not completed. Always, we have to continue to reshuffle the portfolio as the time changes. But as major risks, are there any inherent risks that might materialize at this point? No. We don't have inherent risks. As cash cow, we will continue to make investment into these businesses. And considerable weight is for industry and automotive. And customers are hoping for continuous supply, and switching cost is high. So carefully, we will be continuing to support this business. So the stage has changed for this business. The second question about variation and speed and variation, difficult question. And we have moved into operating company system in order to make this. So the decision is much faster. And yet, China, where we are not quite able to meet the speed, FA solution, Japan is involved. Then we are not able to win. So decision-making was transferred to China, but that is not enough. Making P&L and making budget in Japan, then we are not able to make it in time. So in China, decision is made, and P&L is made in China, and the fund for that will be prepared in China. And for that, motor and basis in China is to be made into group in the same base. We will be starting that from October. Organization will start in April. Virtually, this will be already started in October, including funding. All the decision-making will be delegated to, shifted to China, and we will have governance over them. That's how we are going to proceed. I hope that answers your question. [Foreign language] Yes, I understand. Thank you very much. [Foreign language] Next question, please. From the venue, is Mr. Isawar from Citi Global Markets, please. Thank you very much. Isawar from Citi Global Markets. I have one big question. However, it is divided into two topics. It's about operating profit margin and target. 20% more and ROIC more than 20%. And regarding operating profit, for value-wise, it is JPY 86.7 billion-JPY 100 billion or more. I suppose that is going to be your plan, and this is going to be a higher profit by JPY 70 billion. So I would like to know about the fluctuations, the variance. That's one thing. And regarding the increase of sales, the margin profit means to be around JPY 4 billion. So meaning that the fixed cost may not be fluctuating. So you are now working as an operating company. So I would like you to explain about these issues for operating profit. Next is about ROIC, the actual, and the plan going ahead for three years. It seems to be that you're going to be increasing by 1.5 times. And for the denominators and the, how are you going to be achieving this by denominators and the numerators shared? So denominators, are you going to be increasing or not? Those are the interests that I would like you to explain. Thank you very much. In detail, Sato is going to explain, but I will be explaining about the larger policy and its background thinking. Fixed cost will not increase, and the sales is going to be increased. That is our thinking. The current challenge that we face is in FY2014, the AIS has been shared in various locations, but this is now coming back into the central area, and we need parts, and we need semiconductors, and we need funds too. Those are the organizations working differently for 20 or more years and are now working together. Therefore, the foundation or the base are all different from the organizations. That was the condition, and currently, there is no major improvement in terms of those issues. For FY2023, FY2024, and FY2025, taking the three years, we would like to resolve the issue by that, including the semiconductor and the data Processing takes much more time, but we would like to shorten up the timing for making decisions for the management. The infrastructure improvement is going to be the foundation. Another initiative taken is about the product. We have been mentioning about device-related product and the communications for the device-related and the system regarding product. The marginal profit is very different. Therefore, here we see a very evident difference, including the denominators and etc. Sato-san will be sharing. This is Sato. Thank you very much for your question. For the operating profit margin, as Sakamoto mentioned, we are reshuffling the portfolio in order to decrease the fixed cost, and along the way, this initiative is going to be continued, and we are going to be prioritizing. And while doing that, we are going to be investing on R&D and others and increase the sales and increase profit based on the core businesses regarding ROIC. We have been making an investment which is needed for the area. And regarding the investment, I cannot say in details. However, we would like to grow the operating profit more than the investment. Therefore, for FY2023, FY2024, and FY2024, I think this number is achievable. I would like to add, the structural issues are there. The consumer sales are changing bigger, largely. It used to be JPY 200 billion, and FY2025, it has been dropped around JPY 100 billion. So the cross-sell that is unprofitable is decreasing, and the ones that have a higher profit margin are increasing. Within the next three years, what are you going to be investing, and what return are you going to be gaining? I would like you to share the perspective. Based on what you have seen, fixed cost has been basically decreased, but going forward for the three years, you're going to be increasing the investment. However, the sales and profit are going to be increasing even more than the ROIC. Therefore, you're going to be planning to have a better number. And basically, you're saying that the R&D fee is going to increase, and yes, that is so. Thank you very much for your answer. So we mentioned about prioritization, and for core businesses, we're going to be weighing more on the core businesses and to sharpen our business. Those are the actions that we aim to take. Thank you. いたします。 Next, we move on to the next question. Hirakawa from UBS Securities, please. Thank you. Hirakawa from UBS Securities. I have two questions. Page 8, you're talking about the saving of labor savings and improving efficiency. For the sales, the proportion of this segment to the sales, can you please enlighten me at the same time? Year growth, CAGR, the market growth, and this will be growing at the same level as we move toward FY31. That's my first question. The second question, factor labor savings. At the bottom layer, you will be doing this, as you explained. That's a competition. Who will be your competitors? Can you please enlighten me? These are my two questions. Thank you. Thank you very much, Hirakawa-san. These three areas, how much do they account for on page 8? As we have shown on page 7, the way the 50% of the core business, close to 50% of the core business on page 7. At the same time, CAGR, the same level of growth as the CAGR written here, slightly higher than that. Because the framework of the business strategy is attractive, that is, growth and demand exceeding the average and attractive. And as for attractiveness, as I said at the beginning, rich in customers' issues and problems. If there's no problem on the customers, and we make proposals, that will not do. So rich in problems that the customers have and industry is attractive. With these criteria, we are choosing the industries and the products and services that we offer. If they are inferior as compared to competitors, then we are not able to grow in the level of the average industry. So in that industry, are we able to differentiate ourselves, and can we turn that into value? With the multiplication of these two, we have calculated and conducted our business and selected them as core business. Therefore, in the industry that we have chosen, we are going to survive. So growth rate, which is higher than as compared to industry average. Who are the competitors was your second question. FA industry, as you know, is an area with a high cost. So European giant is not a Chinese giant, and that's the same as China and Japan. Depending upon the uniqueness of the region, uniqueness exists. And by layers, going across the borders and connecting the plants, factories, and German companies are making proposals in that way. And the factory as a whole, a makeup system proposal, some people do that, a line as a whole. So the main players are different for the categories. And with the players of the three layers, we are not going to compete on the same playground. We will not be able to win. So in China, machine builder, the lowest layer, motor and sensors, and we already established our share. So machine builders, customers, small and medium-sized machine builders, we provide the best solution, FA solution, as I have explained. So, main player place where there's no main player. It's not objective to fight or compete. If we compete, then we have to win. So the segment is most important for FA, machine builder layer in China. That's why we are selecting. Therefore, whether there's a big competitor, there are many competitors. But with that philosophy in mind, connect to the higher layer or easy package for installation and the installation time, which used to be three weeks, is shortened to five days. And there aren't many proposals made in that way. We have just begun. So this is yet to begin. And the speed is crucial. We have to increase speed, and there may be failures, but we learn from failures, and we are going to grow this business. [Foreign language] Next question. Sakai-san from Daiwa Securities, please. Thank you very much. This is Sakai from Daiwa Securities. I have one question. For material informatics, from the last midterm plan, I think I'm looking back three years, I think you are advancing. So what has been changing, and for future development, are you already seeing some success? So if there's any case that you can share with me, I would like you to introduce. And to start with the material informatics, I think you're very high-ranked within the ranking within the world for handling material informatics. Thank you very much for your comment and question. So you're mentioning about the turning point, and we have been increasing the number of application products. We started from MI, but now the Process informatics is with us. The Process change itself is important, so we have expanded into both two areas. And regarding the success, we have seen large success within the functional capacitor and the electronic materials. And so, about those areas where the people needed to be testing or working, the successful area has been successful within decreasing the lead time to a half, which is showing great changes. But as you are aware, this industry is still on its way. So the result and the logic, we have to take a long time and work hard in order to have the intertwining relationship. And if we are not going to be working within this area, we will lose within the competition. Right now, we are now going through the suffering of creating something new, but we have to keep on doing. And by doing so, the accuracy is going to be increased, and it's going to be a unique feature for ourselves. Therefore, although we could face difficulties, we would like to continue on with the activities. [Foreign language] The time has come. So we'd like to entertain one last question. Anybody who has a last question? [Foreign language] No more questions? Yes? Thong-san from Macquarie Securities, please. [Foreign language] I have one question. FY31, CapEx plan up until FY31. Can you explain? Of course, this time, you are forecasting, making forecast, and you have factories, the startup of factories, in other words, semiconductor materials. You are expecting growth, and you make investment, and the cost of investment. Is there a concern that the investment cost will increase going forward? [Foreign language] As I said at the outset, globally, 55 manufacturing sites we have. And in nine domains, we had nine domains. That's why we have factories. Rather than establishing a new base, efficiently integrating the existing sites is more important. At the same time, the amount of investment, I was involved in battery before, as compared to CapEx of batteries in the device area, its investment amount is much lower or light. So the focus is, rather than the big risk of making large investment into factories, continuously making R&D investment. That is a crucial point for winning or losing. Thank you very much. It's very clear. Now, with this, we'd like to conclude the session on Panasonic Industry. Thank you very much. Thank you. This is Higuchi from Panasonic Connect, and thank you very much for your daily support. From my side, I will be discussing about the FY23 and three years onwards for the Panasonic Connect. I would like to explain about the mid- to long-term strategy. So the other day, April 4th, we had a launch of Panasonic Connect, and we held a press conference. At that time, we mentioned that Panasonic Connect, so purpose, value, and introduction and strategy was explained at that venue. And we have been having a notice campaign, especially the purpose video. At this point today, it has been viewed by 16 million people. So we have been working very intensely for notifying this Panasonic Connect. And the press conference video was also shared to the analysts. Maybe you have seen this already. So within our position, this is an independent company now. And triggered, we are going to be promoting on the two businesses that I already shared. For the left-hand side, we indicate the growth businesses based on software base. Blue Yonder is going to be the center for the supply chain businesses. And in the press meeting at May 11th, we shared the notion that we are going to aim for the stock listing. Once again, the evolution of this industry is very fast. In another way, if we can make decision-making at a timely point and manage ourselves, we can greatly grow. Software ratio is around 80%. There is a possibility of people transitioning to the cloud. Therefore, we wanted to keep a very central position. We can keep on with the central position. Thereby being speedy and being the autonomous decision-making, we can also grow a synergy between the Panasonic and ourselves in tandem. On the right-hand side, this is indicating about the core businesses, which is based on hardware-based businesses. In the past five years, it took five years. We have been working on prioritizing, and we have been converging to nine businesses, either by transferring the businesses and others. As a result, we came to narrow down into four businesses. These four areas are the area where we can sustainably gain high profitable profits, and from going forward, there could be some narrowing down for our concentrations. However, basically, we are going to be sharpening the hardware area, so I think our conditions are very clear in our direction, so whether it be the growth businesses, core businesses, we will be making investment. So JPY 150 billion will be an investment upon the ordinary investment in order to intensify the growth area within the next three years. The core business, JPY 50 billion increase for investment is what we are thinking. In each of the hardwares, hardwares must be sharpened, and to be in details, the Avionics must go through more lighter systems, including the IFE system having it much more lighter. And the system itself is becoming much more sophisticated. Therefore, we have a lot of things to do. The hardware itself is having digital services. Itself too is asked for a more sophisticated system. Therefore, so it should be connected on the devices, so the system itself needs to be sharpened, and the need is very high. Rapidly, the demand is coming back. The Media Entertainment, the projector business, especially for the higher trend. This is an area where it is used in a very high mission-critical area. Therefore, the product. It's not only the product, but we have to be expanding businesses from starting the maintenance and provision too for the new solutions. New solutions also must be driven too. Regarding Mobile Solutions, core technology should be deepened to sharpen the product itself. Upon that, we must work on the operational excellence by being lean and mean. We still have a lot to do for becoming leaner. The SKU number is inflating. So there we need to be narrowed down. So we are looking for a JPY 10 billion management effect within the next three years by looking at the expenses. Process Automation, we now are running the business on a very good location. As notified, this area is cyclic. Every five years or maybe three years recently, it is cyclic. And from here on, looking at the five years, seven years going forward, the EV and the data center and the device electrification sophistication is going to be happening. So from the cyclic that we haven't seen, it is becoming and showing a different tendency. So the semiconductor manufacturer is having a higher investment. Therefore, we would like to invest too in order to expand our capacity. And for the, we are thinking about a JPY 100 billion investment for the growth area for all of the investment. This is going to be invested from the growth investment framework or utilizing our own cash flow in order to invest, and this is going to be invested in a timely manner today. The Blue Yonder explanation, especially on the growth business, we did have some timing to explain. Therefore, today, I would like to explain much more on the core business. For the four area of work, the two businesses, EBITDA and the margin ratio is over 10% already, and on 2021 business and the next fiscal year, there's going to be the Mobile Solutions. Therefore, in fiscal year 2025, for four businesses, we are targeting to be beyond 10% for the EBITDA margin. For the four businesses indicated, we aim to be global number one or else the number one in the Japan category. Already, we are in a strong standing. However, we need to be sharpened, focusing on specialty and implementing the Blue Yonder time by time in order to sharpen ourselves and make things solution-wise, system-wise, and to make some combination with other products. So from three perspectives, we would like to trigger the drive. I would like to go one by one, first of all, for the Avionics. From the past, the share we have been enjoying the share, a high share from the past, but the deal that we have been securing so far, we are now offered a more higher share. With the COVID-19, we are much more lean, and the product offering is strengthened currently. The number of passengers utilizing Avionics is recovering rapidly, and demand is also following suit. So the parts are in shortage, which is a bottleneck, which is a headache for us. So going forward, the Avionics will be focusing on the narrow body. So narrow body demand will be expanding, so we will be focusing that. And the demand for digitalization will follow. The software services will also be on high demand, especially for software. It is going to be in modular and hardware. Hardware, we would like to answer to the needs of the users by not creating the parts differently from each manufacturer, but we would like to make it modular. This area on ground, the smartphone or devices, the broadband will be accessing to your terminals directly, but then the aircraft. This area is the only area where GAFA cannot connect directly. So there we can enjoy a high market share. Therefore, various things could be considered that we will be able to do. We will not take that for granted and will work diligently. Next is Media Entertainment business. Just like Avionics division, we were hit very hard by COVID-19. The number of events were decreased, and it was hit very hard around amusement parks, and around 2025, we forecast that we are going to be enjoying the level higher than pre-COVID. The EBITDA margin is currently over 10%, but for 2025, we are in more higher. Just likewise, with the Avionics, the recovery is very fast. The demand is recovering very fast. We can just sense that. Therefore, I think this is going to be fast recovering. We will be focusing on the very first in the industry and have a launch of a number one new product within the industry in order to draw growth, so remote maintenance and servicing businesses, subscription businesses, such as cloud businesses. Those are the businesses we would like to launch. Next is about mobile solutions. This is following within 2025, the support services of Windows 10 is going to be finished. And following that finish, this is going to be a growth area for us. For instance, the non personal computer, the product line, Let's note TOUGHBOOK and the transaction terminal. Within the three categories, this area we will be very careful by being a commodity, but we need to sharpen our unique position. The lean and mean operation should be done thoroughly within all the four businesses the most by introducing Blue Yonder. The stagnant inventory and the accuracy of the movement is very well captured. Therefore, we are going to be maximizing our works. Currently, we are rather constrained because of the parts shortage, but this is going to be increased. And this is going to be a 10 billion JPY inventory and Process Automation. Process Automation, these server and EVs and welding machine and mounting machine. As we move toward EVs, needs for welding will also change. So new needs for welding is emerging. The reason being toward 2030, the arc welding robot and welding system CAGR of 5% growth is expected for long term. Hardware will be further enhanced, hardware with high competitiveness, and we are going to increase the amount of solutions that we can offer. And the new platform, NPM-G series, was announced in spring this year, which has higher mounting speed. And 5M, which is a variable element in the production site, is autonomously controlled. So this is a new platform. And there are great expectations to this. And symbolically, this is a sophistication of the hardware and the mounting machines, welding machines, direct laser, and semiconductor Process. In these areas, we are going to further enhance the specialty. Process Automation autonomous factory concept is launched. In production, Gemba variable factor 5M, the machine, the materials, people, and the measurement will be autonomously controlled. The needs of the customers and change of the supplies will be automatically responded to. That is the ideal. This is the example of mounting machine. Mounting machine production line will be optimized, and this will be realized in the physical space. Also in the cyber area, management of planning will be done. AI machine learning is also incorporated. Autonomous factory, if autonomous factory is made, then autonomous supply chain, higher layer, Blue Yonder, it will be connected to Blue Yonder. That is a long-term idea we have. Lastly, about growth business, I would like to touch upon. Already, standalone performance of Blue Yonder has been announced. I would like to touch upon this. In January to March this year, the sales is 111% as compared to the same period last year. Double-digit growth is maintained, and the ratio of SaaS sales is increasing, and currently, it's up to 39%. SaaS ARR, annual recurring revenue, is a 36% increase year on year. SaaS back order is 144% compared to the same period last year, so the result is far outpacing what was expected at the time of acquisition, so momentum is there, and will be the momentum to drive the recurring ratio is strong. SaaS business, we are going to achieve results here. R&D will be strengthened for this area, and microservice, native SaaS, the kind of investment for investment is already made, and missing parts are to be collected by M&A investment, and the second point, Gemba collaboration, data collaboration. This is where the technological capability of Panasonic is there. Collective linking with Gemba data and is flown into SaaS, Blue Yonder SaaS to increase further value added. Sensing, our sensing and the industrial engineering that we have nurtured from manufacturing and Gemba optimization solutions. Such high precision data will be incorporated into Blue Yonder SaaS platform, and the feedback loop will be established. With Blue Yonder, already we started a project. Blue Yonder is competing with Manhattan, Kinaxis against the software competitors. We can contain the customers, and the customers will be Blue Yonder. People say that it's possible to encircle customers, and the white space, Japanese market for Blue Yonder, utilizing customer base and brand talent of Panasonic Group, Japanese business will be driven. I became chairman of Blue Yonder Japan, and I am at the helm. I touched upon this earlier. R&D, investment, native setup, and micro investment, and modules licensing to other companies. And license revenue will be enjoyed. M&A, especially in the area of e-commerce and last one mile, supply chain network, we will be adding missing parts. As a result of these activities, where are we headed for? What are we aiming for? The same as what we have announced on April 4th, JPY 1.17 trillion for FY24, the sales, EBITDA, and the cumulative cash flow of JPY 260 billion. We are going to achieve this. Recurring ratio is currently 44% for growth business, and we are going to increase this to half of the sales. EBITDA, 13%, is to be increased to JPY 150 billion. What are the key levers? Of course, first and foremost, we have turned around the loss-making business, and then recovery of Avionics and the growth of Blue Yonder. These three are the major levers. Of course, organic growth of core business will be driving the growth. With these three levers of growth, the probability is very high. First, we will achieve JPY 150 billion EBITDA and aim for excellent company. We lay the foundation for becoming an excellent company. Lastly, left-hand side shows the growth business. Blue Yonder, Panasonic execution layer is incorporated, and cyber- physical growth is to be made, as I have already explained. Conversely, right-hand side, hardware is to be refined and for businesses. The cloud-type SaaS business opportunities exist in plenty. Rather than bottom-up, Blue Yonder's cloud SaaS type business and KPI platform, agile development, human resources know-how, these will be shared so that the core business hardware will be refined, but in addition, add-on. We learn from Blue Yonder and have the synergy. Already, we have sent people to Blue Yond er, and there's exchange of human resources. With this, I have explained the medium-term plan. Ono-san from Morgan Stanley, please. This is Ono from Morgan Stanley. I have two questions. One is about core business, and the other one is the growth business. Regarding core business, on the very last end, on page 7, you have been indicating, but my question is about the Process Automation, Mobile Solutions, and the Avionics and Media Entertainment businesses. And so far, Higuchi-san has been working on the organizational changes to improve the profitability going forward. How much room are there in order for you to make changes? For instance, within the higher layer, I would like to know about the timeline. Each timeline will be probably different by businesses. And I would also like you to share with us what businesses, what potentiality are related to the businesses. That is the first question. Second question, the Blue Yonder Central, the supply chain management development is going on, and you edge device, and you had software, and Blue Yonder acquired, and you are emphasizing on your strength, but currently, companies such as Sony, the competitor, are using sensors and using Azure of Microsoft. Likewise, supply chain is developing on their side, which covers the supply chain to some extent. The source of competitiveness of the edge device, what is your ground to what you are saying that you have a strong coverage against Sony, and what do you point as edge device on your side? What is going to be the source of competitiveness if you have edge device and not. So regarding the second question, Akiyama-san is here representing the area. Therefore, I think that should be covered by Akiyama after myself. So first, starting from the core business and the location, the part of the cloud service area or the positioning, excuse me. According to businesses, it could be different. And like platforms other than KAIROS, there's already a hardware existing. And the visualization of the hardwares or the control or the feedback feed forward, what should we do? And if there is some demand of the visuals that the customers would like, all these will be employed within our services to create and platform from bottom-up. Those are how we are developing, and we need monetization and scalability. But it is difficult to honestly share with you right now. Like the U.S., if there's a common denominator and create products from the application layer and then scale all over the world, that is different or difficult for us, Japan, to do. That is why we have acquired Blue Yonder. So it's probably difficult for us from Japan to work organically in that sense. But it is definitely going to be contributing to the customers. Therefore, anything upon the hardware, if we have any experiences, know-hows, we're going to be connecting to the Blue Yonder. And other than KAIROS, the monetization is not that large. But the value add for the hardware and the value add portion of the software are going to be growing. That is definitely true. That is something that I would like to pursue. The edge technology for ourselves, the Technology Research and Development Division, what they are working on is not working on the sharpening of the hardware, but focusing on the software. For instance, the camera vision is going to be utilized. So meaning that what is the image taken by the sensor is going to be used. The software portion is meaningful. Therefore, the area where hardware could be coming from any areas. But having said that, anywhere that the hardware needing the capability of Panasonic, we will be working. And Akiyama-san is working on such area. Therefore, I think he is going to be explaining, sharing with us the strength of the Edge. This is Akiyama, and we have a very big pillar for the mounting machine. The key, I think, are three. One is edge device, the spec. These days, it is becoming much more smaller. And looking at the consumption of the energy, the Process is now asked for in higher spec. The fine Process should be prepared in the level of the world, number one. That's a big condition. And the other thing is about edge device that has an addition of the IoT connection. The product-out was just about delivery and the cost and the quality, but starting from business model, we will recalculate from the business model in order to utilize our edge model, so edge device that came and created the profitability, the maintenance part, the marginal profit is very high business. We would like to shift in those areas, and if so, the hardware has to have a preventive maintenance, and the software should be designed into it, meaning that business model, software, hardware, in that order, each layer has to be IoT and then has to be connected and embedded within the hardware. That's one function that is asked for, and lastly, unmanned, meaning that at the plant, at the management level, this is something very much asked for, so edge devices with the surrounding devices, the automation devices that decreases the number of headcounts. And in the ultimate sense, 24/7, the plant must be running automatically, which is going to be a big value add for edge device. those are the three points I would like to focus on. Next question, please. Okazaki from Nomura Securities. On the front line, please. Thank you. Okazaki from Nomura Securities. My first question. Gemba Solutions Company. Progress of this company. For other existing business, you have introduced your thinking. Blue Yonder. Before Blue Yonder came in, in IR Day, Gemba Solution potential was emphasized, I believe. But now, how much was it sharpened? Going forward, the new company or supply chain, you are considering the specifics. But the collaboration with Blue Yonder of Gemba Solution and the potential for that, can you please enlighten me? My second question is Avionics. With COVID-19, the demand has come down, and it's easy to imagine the recovery from this. But even before COVID-19, for example, onboard entertainment demand did not grow so much. And it's replaced by the devices that individuals hold. So how is this discussion going? Can you please explain and enlighten me? Thank you very much. Your f irst question. The data for your question, I missed your point. Progress of Gemba Solution and collaborating with Blue Yonder and Gemba Solutions Company, how much potential is there? Thank you. Let me make some comment and ask Harada-san to follow up. Gemba Solutions Company, PSSJ, former PSSJ, so the business is outsourced and developing individual products, one product. But that alone, scale is not sufficient. Bulk users, loyal users. We have loyal users, so strong, solid demand. Not just selling products, but solutions and systems are sold, which resulted in us securing profitability. On the cloud base, increasing recurring ratio and scalable. How are we going to increase this? Face recognition is turned into module and can be used in an easy and simple manner. Sensing is to be incorporated into module. We are doing that. Gemba optimization and Gemba sensing solution, as we call them. We cannot expect to see rapid increase, but we keep saying recurring like a mantra and looking back at the level increases gradually. That portion is gradually increasing. In the meantime, we learn from Blue Yonder. There have been failures. For example, new sockets module was made. Now, development method and the development environment of Blue Yonder, we learn from them. We have to make sure that we do not become a Galapagos island. We have to do it in a manner which is we recruit architects and driving this move. Supply chain, Blue Yonder Japan's pipeline is filled with Panasonic's customers and projects from Panasonic, a considerable portion of pipeline, and the partner collaboration and lead is also increasing from this. Gemba Solutions Company and Blue Yonder Japan and IBM, Accenture partner, collaboration with the partners. There are great expectations for this collaboration, and it is starting up well. Rather, there's a shortage of resources. Hardware, shortage of parts, and software. We have the shortage of human resources. Sorry for the lengthy response. Now, after acquisition of Blue Yonder and the collaboration, especially from the perspective of Gemba Solutions Company, there are two areas of expectations. One, a foundation we enter into the very core of the management of the customers. Again, Gemba Solutions Company has contact with the customers and the areas which are closely linked to management of the company and also delivering products, selling products. Blue Yonder, as you know, goes into the very foundation of management. So we talk with the management of Gemba Solutions Company, and they would like to go more into the core of the management. Blue Yonder and Gemba Solutions Company together enter into the very core of the management of the customer company. Then we will become inseparable from the customers. And then supply chain, SCM. For the past one year, manufacturing and logistics, retail, and we have been explaining to Blue Yonder. But that alone is not all. It's not just the three businesses which are faced with supply chain. Gemba Solution Company's customers for them. It's not just manufacturing, logistics, and retail. Things are moving, and there's increasing needs to deal with their problems. So, Blue Yonder Solution, and as Higuchi said, Process in Gemba, not production and logistics and retail, but we make improved Processes of customers and make a proposal. There's increased potential to make such proposals for the customers. We cannot talk about the stock listing, but Blue Yonder and the Gemba Solutions Company's multiplier effect we can expect greatly. Avionics, your second question. At one time, bring your own device, and there was a discussion that everything was replaced by bringing your own device, including economy class. Unless there's some kind of display, people are not able to. They have become impatient with COVID-19. The expectation is increasing. So, bring your own device, bringing your device and from satellite connectivity is provided and distribute contents or onboard Wi-Fi and distribute contents. But at any rate, our system is needed in either case. That's one way of doing it. But with 4K clear picture and seatback big screen, and needs is very high for that. Vis-à-vis this needs. There are many companies which are generating profit from the onboard sales of goods and providing various services on the display. Bluetooth. One-to-one pairing of Bluetooth to all the passengers, there's interference. Technology to prevent interference was developed. So all seats, Bluetooth pairing is possible with technology of Panasonic. So depending on companies, different views exist. Economy class, display on the seatback in some company, and other companies which would be bring your own device. But business class and first class, big screen display. The system that goes on board, we have the technology. Theref ore, these opportunities will not go away. I hope that that answers your question. Next. Ayata-san from JPMorgan Securities from online, please. Thank you. Ayata from JPMorgan Securities. I have two questions. One is about Process Automation. You mentioned about autonomous factory, and I would like to know about the logic that the PA business of yours is about a welding machine and the mounting machine. That image is very strong. So including IoT, it's not, honestly speaking, visible for me, and within this area, other companies like Siemens and Mitsubishi Electric or Hitachi, they might utilize different wordings, but they have similar concepts, I suppose. Therefore, I would like you to share with you your strengths by comparing your competitors, and according to CEO Higuchi, the coordination with Blue Yonder seems to be something in the near future, not currently happening. So is it because the touchpoint of the management is different from Blue Yonder's, or the touchpoint of the Process Automation with Blue Yonder is something that I would like to know? Second issue, please refer to slide five about core business portfolio. And within the core businesses, the business synergy—are there existing—for business and synergy? So when we look at this, it's focusing on the client and the business area, but it seems to be dispersed. It's not seemingly overlapped. Therefore, I would like to know about the reason about this portfolio, if there should be any synergy among the businesses. I would like to know too. Thank you. So Akiyama-san, maybe the first question, please. Yes, this is Process Automation, Akiyama. The concept of autonomous factory, it's ab out the overall manufacturing, and we are not thinking that it is going to be ripple effect for the whole manufacturing, but the strength that we have, such as welding machine and mounting machine. I would like you to understand that this is the autonomous factory for the customers that we have within the physical area and the cyber area. Many players are existing. There are so many players existing. Why is it that we are focusing and narrowing down the customers and narrowing down the services for autonomous factory? We are not selling the equipment. We are selling the Process for the equipment. Therefore, if there are deficiencies or any challenges at Gemba, the edge equipment that I have shared and the software, by accumulating the data autonomously, the improving point will be indicated by the system utilizing the AI technology. This is intrinsic within the edge-type technology. Not everybody can work, even though they can apply the AI technology. The mounting machine and the welding machine has a Process that we have been following for 50 years, 60 years. Embedding these well-known machines for us within the plant makes the plant autonomous. You mentioned Siemens and other companies. For those companies, they are working on the layers, not having an edge equipment. So we have the edge equipment, and plus that, we have the fine Process control and know-hows and the 5Ms that CEO mentioned. By all these autonomous controls, the plant is going to be autonomously run, which is unique for Panasonic. For the customers, for mounting machine and welding machine, that is what we would like to provide, and that is what we call autonomous. About the connection point of Blue Yonder, I don't know about the flow, how much it is flowing end to end. The Process, like chemical, which is flowing, and the assembly type, there could be some working Process and batch Process in between. So there could be some manufacturing Process that is not flowing. So the Process type that is flowing could be easier to be creating this flow. You have mentioned that from the upper end and the lower end could be easier to connect. Therefore, in a lump, it's going to be easier to connect. But then looking into pinpoint, many data could be connected to the Blue Yonder to increase the value add. So partially, many things could be done through the Blue Yonder. Regarding the core business and the synergy between the core businesses, Harada, who is in charge of strategy, will answer. The synergy between the businesses is maybe for the businesses. It doesn't have any synergy. Maybe it could be having some synergy within the talent management. In the Western companies, the portfolio management, we have been always thinking from that perspective in the last five years that we would like to aim for global number one or outstandingly number one industry in Japan. In those areas, we would like to be profitable. However, if we have not the competitiveness, we will be so the businesses will be the subject of the prioritization and selection. We're not saying that we are working on various areas so everything could be connected. That is not the case. However, there could be some case where the customer base is the same. Or else, out of our imagination, maybe there could be some unprecedented, unimagined innovation. So there could be some component, and sometimes a dot and dot could connect. That could happen. Thank you very much. ご質問をお受けいたします. Now, I would like to move on to the next question. SMBC Nikko Securities, Katsura-san, please. Thank you very much. I have one question. Slide page six, Avionics. In three years, Connect sales growth, and 40% of the sales will be coming from this business. As a previous person asked, FY19, JPY 300 billion, and it has come down to JPY 100 billion, and it is going to return to JPY 200 billion level. As the business recovers, there's a considerable difference in the content. You said that share has gone up. So how did it change? Please give us some hint. Page six, left-hand side, you have the recovery of a number of customers. Then, naturally, service maintenance will be needed. So the flow, not depending upon sales, and you are able to generate profit. Therefore, you are okay. Is that how it is, or there's a shortage of parts, and the fragile situation persists? So what is the likelihood or the probability of achieving this? At the risk of being repetitive, the largest change in the past when jumbo was flowing, but fuel efficiency was low and inefficiency. So it's better to fly more of the smaller aircraft. But with a narrow body, you can fly that have the longer range. So the ratio of wide-body aircraft is decreasing. After COVID-19, the demand for narrow-body aircraft will be increasing significantly as compared to before COVID-19. Narrow-body aircraft, IFE, the wide body was a mainstay, but narrow bodies also. There'll be a display on the seatback. But price pressure is high. So we are able to generate a high profit before, and we make with a customer's demand. SKU is increasing. Screen size alone, embarrassingly, a large number of screen sizes were offered, but we standardize and reduce cost. That's what we have done over the past two years. That is a big difference, largest difference from before the COVID-19, and the recurring revenue, the maintenance that we thought was recurring revenue was also cut off with COVID-19, so we were hurt considerably by that. That is the largest change, and the recovery is robust. Numbers. Nishikawa will supplement with numbers. The size, IFE, entertainment system with COVID-19. Pre-COVID, as compared to before the COVID-19, it went down to one-fourth or one-third of the level. Service, even at a difficult time, it was only one-half, and end of FY23, it will come back to the level, which is 20% lower. So it went down to 50%, and it goes to 80%, and then goes back to 100%, which is the same level as before COVID-19. Entertainment system is still at the level of one-third pre-COVID. As Higuchi explained, airline performance is recovering, and demand is picking up rapidly. End of FY23, the size is the same as service or higher than that. That level is expected. Demand is going to recover. And then all that matters is whether or not there will be components and materials necessary. Thank you very much. The time has come, but one more question. 以上から。 Izumi-san from SBI Securities, please. Thank you. Regarding Media Entertainment, sales are recovering, is what you have said. And the background of this, the reopening from COVID-19, and the economy is coming back to normalcy, the outdoor concerts or events could increase. But are there anything other than those? For instance, maybe do you see any trends in expanding the esports or any trend that you see growing? If so, please share, and my second question, regarding the growth businesses, you mentioned that you cannot mention about the stock exchange listing, but as far as you can share, do you have any notion of spin-off, so the stockholder of Panasonic today, it could be acquiring 100% of the new company. I think the shareholders will benefit from that, so do you have those ideas? So it's just as far as you can share with us, please. For the second issue, I would like to ask Harada to answer, and for the first issue, before and after the COVID-19, the changes with demand was what you mentioned, and the remote camera demand is rising sharply, so that is one trend that is growing. This one is pushing up the profit. Like KAIROS, you don't really have to be going to the Gemba, and edit can be done by software based on the cloud. So people do not have to be in one place in order to go through the editing. So the demand based on remote work is one change that we observe. Even post-COVID, this editing could be done inexpensively. Therefore, I think demand will be growing. The question that you mentioned about the stock change listing, unfortunately, we cannot comment. But on May, the press holding was held, and at that time, we are going to be holding the majority. So far, that's the clearest point that we can share with you. Thank you. With this, Panasonic Connect explanation will be finished. Thank you very much. Good afternoon. I'm Tadanobu from Panasonic Energy. Panasonic Energy, unlike the three companies that you have heard, the various energy business of Panasonic regrouped into our company. In the earnings call and IR, there has been communication. But Panasonic Energy as a whole, the strategy, the first time that we explain the strategy of the company. From that perspective, I would like to highlight the key points. Now, I would like to explain Panasonic Energy's FY23 full-year financial forecast and medium to long-term strategy. This is the agenda for today. First, I'll talk about the contribution to society and the FY22 results and FY23 full-year financial forecast and the medium to long-term strategy in this order. First, as the battery business has its long history, so I'd like to explain the battery history and our contribution to the society. First, I'd like to look back on the history of Panasonic's battery business. Panasonic started production of dry batteries in 1923. Since then, for almost 100 years, Panasonic has been driving and enhancing the creation of enriched lifestyle and convenience society as a leading battery company through the evolution of various batteries and the introduction of industry's first technologies. Our strength is, simply put, technology such as materials development, manufacturing, and intellectual property, market creation to solve customers' problems by strategic relationships with customers, and as we have been focusing upon high confidence, so the brand with highly trusted performance. We believe that it is our mission to develop new technology and products by leveraging and enhancing these strengths and open up a new era. Now, what are we going to do as new Panasonic Energy? Achieving a society in which the pursuit of happiness and a sustainable environment are harmonized, free of conflict, which is the mission of us. Environmental performance and safety performance, which is number one, and minimize environmental impact to be energy that changes the future. As we say our will, we will have the strong will to do what humankind requires. In order to realize this, as you can see on the right-hand side, the pursuit of human happiness. We are to maximize contribution to the society through our battery. For that, what we think is important for the products that we offer is environmental performance and quality and safety, as we have been focusing upon from before. The harmony with the environment is to minimize the environmental impact related to all the business activities of the company, not only in our own factories, but measures for the entire supply chain is important. I will be coming back to it later with specific examples. By realizing the mission, we will increase our contribution to the environment, and we'll be driving Panasonic Green Impact, which is the environmental vision of the group. Next, business scope. I would like to explain. We will contribute to environmental issues and where our strengths can be utilized: automotive industry and consumer area, that is, green and digital areas. We'll be focusing upon green digital area. In the automotive area, we entered into a full-fledged EV dissemination period, and the growth of battery market is accelerating at an unprecedented speed, and industry and consumer area that we have not been able to explain in the past are seen in the increase in data volume due to the expansion of digital society and effective utilization of renewable energy, acceleration of electrification and motorization of society. Infrastructure is creating new demand. With diverse batteries and technologies that our three business domains have, we will reduce CO2 emission by supporting electrification of mobility. We will establish a safe and secure social infrastructure that will not be disrupted even in times of emergency. We will create a convenient and comfortable lifestyle with environment-friendly batteries. We will maximize contribution to the society by doing these. Next, I'd like to explain the FY-22 results and FY-23 full-year financial forecast, breaking down the contents of the earnings announcement we made the other day. First is FY-22 financial results. Both sales and profits increased led by the expansion of the automotive business and improved profitability in the industry and consumer business. As a result, EBITDA significantly improved. New production line, North America significantly contributed sales against a robust automotive demand. Operating profit and EBITDA increased due to increased sales, profit, and rationalization. More specifically, significant productivity improvement in Japan, North America for automotive business, and in industrial business, expansion of system business for high-value-added social infrastructure contributed to improved profitability. I am not writing numbers, but the breakdown by segment is shown by the pie chart on the right-hand side. For environmental performance that we are focusing upon, we set two KPIs. Carbon dioxide reduction through production was 13 million tons in FY-22. This is calculated by CO2 reduction per driving of EV, which mounts our batteries. The CO2 emission reduction through our plant was 450,000 tons. We achieved carbon dioxide reduction while production volume increased thanks to carbon-neutral activities in China and Thailand factories. Next, FY-23 full-year forecast. Sales were increased by expanding batteries for automotive and social infrastructure, and it's expected to grow by double digits from FY-22. In relation to the customers, we do have this. This is a level that is achievable. Now, the after-profit impact of material price hike were recouped by price revisions, rationalization efforts, and increased sales. But as I will explain, profit will decrease due to the investment for the future. Especially, the impact of the materials price hikes will materialize in the first half due to price hike since FY-22 Q4 as a result of deterioration of the international situation. But the impact will be alleviated by price revision and rationalization efforts in the second half. Future expenses will be explained later, but future expenses are investment in automotive-related development and investment for production increase for Industrial and Consumer businesses. The environmental performance will continue CO2 reduction through products. Although we focused on a decrease in profit in FY23, we will strengthen management effort and make proactive investment in order to maximize our contribution and realize sustainable growth. Now, I would like to explain medium- to long-term strategy for the next three years. The overall concept is to achieve sustainable growth, implement management based upon two pillars, that is, the growth potential in automotive business and profitability in the Industrial and Consumer business. In addition, we will lead the way in building a sustainable society environment through environmental contribution activities. Financial goals are sales figure of 10% or more and EBITDA 20% or more. In order to achieve this in implementing management based on two pillars, we set EBITDA as KGI. With automotive business as sales growth driver and Industrial and Consumer business as profitability driver, we will increase sales and EBITDA as shown on the right. In terms of contribution to the environment, we set carbon footprint as KGI and promote measures to reduce carbon dioxide emission from business activities and supply chain and address resources issues. Next, I will explain initiatives in automotive business, Industrial and Consumer business, and contribution to the environment. First, from here on, I will explain the in-vehicle strategy. What is indicated here is the result of the in-vehicle battery. Our company is working on the cylindrical lithium-ion battery and already has been supplying the 10 billion cell or more. With the cylindrical platform development and high capacity, we have been always leading the industry. Left-hand side is the shipment result of the cylindrical battery, 2008, 18650 size, 2017, 2170 size in-vehicle battery mass production started. So far, in the conversion of EV, we have been providing 1.7 million worth of the cell batteries, and we are maintaining number one share in North America. As a manufacturer, this is all too normal, but we have a high consciousness on safety, and so far, there is no large recall or any recall happening with generated from the battery. The track record has been supported by our history that we have been trending for the technology development. The form factor development advances and the cylindrical battery, we have been advancing the material technology incessantly. Going forward, we will be serving with our outstanding technology in order to evolve 2170 cell and a new 4680 cell. We would like to develop the EV and further spread and make contribution. For the strategy for in-vehicle battery, our strength is high capacity that should be utilized, and North America market will be our focal point because there is a strong foundation already for us. We will expand the sales for 2170, which is already having a track record, and also strengthen the foundation of business for 4680 cell, the new cell. Left-hand side is about the image of enhancement of production capability for the in-vehicle battery. Customers are giving us a robust demand already. Until FY20, centering around North America, we are aiming for expanding the production capability threefold to fourfold. On the right-hand side, this is a summary of our customer and product strategy. The key point is to create and strengthen a partnership with a customer who can evaluate our capacity and safety for the cylindrical battery. For 2170 cell, which we have the track record, we will improve our productivity. And for our new technology, in order to raise the performance, we will be working intensely on having higher competitiveness. We have already been awarded various inquiries. Therefore, we will be expanding the strategic partner to new customers. Regarding the 4680 cell, the next generation platform, we are under verifications for mass production and development in fiscal year 2024 in Japan's factory. It is to be commercialized and to be starting supply to the strategic partners. The 4680 cell that I think you already have a very high interest, I would like to share with you the development. As already shared, 4680 cell, we have a plan to produce in mass in Wakayama and starting supply in North America starting FY-2024. Left-hand side is the schedule and the development. In a nutshell, currently, we are very much on track upon our plan. The prototype development is already complete, and we are now moving into the production development phase. In the pilot line in Japan, starting May, we have started opening for prototype. Along with that, accordingly, we are delivering samples to the customers. Customers are now under evaluation. The mass production, which is about Wakayama plant, regarding the plant, as shared in the news, Wakayama plant is under renovation according to the plan. Along the way, we have been starting the production for the equipment itself. On the right-hand side, we share the initiatives, main initiatives for commercialization, for technology development for the 4680 cell. This is to be having tandem high reliability and high performance. We already have a good idea of what we are working on for operation and manufacturing. The premise is to produce in Wakayama and to develop globally. For the supply chain, for stable supply, the materials multi-sourcing is what we are going to be working. And in the future, we would like to raise the local procurement rate to 50%. As such, the commercialization of 4680, when we are going to be opening up the operation in North America, we will draw from various experiences that we have been gaining, and we are steadily working. That was about automotive in-vehicle. Next is about the strategy for industry and consumer business. The key point is the social changes, which is heading for digitalization and electrification. We would like to promote this in high safety and high reliability technology. We will be utilizing the cell technology as core and will apply it to various systems in order to contribute. We have not been able to have an opportunity to explain this business. Therefore, I would like to introduce some of our representative business. The data center, which is the information community infrastructure, the needs for data maintenance 24/7, 365 days are asked for. For this, we are already supporting and providing the backup power source, which is having a long life, which is highly reliable and safe. This is one point that we have been raising and sharing. This also is sharing in very high share. We also are working on battery-assisted bicycles in the future for the power equipment, including the construction and agricultural machinery. According to the cooperation and the needs of the customers, we will be developing and providing the optimal packing systems for each of the products. For the consumer side, the smart meter and the medical equipment and IoT-related equipment, we will be working widely for utilizing our application. For those areas, according to the user's environment, we need to garner high reliability. For this, our primary lithium battery is making contribution. So regarding these three businesses, we are having a very high demand from the customers. Therefore, for the growth of the sales, we believe we are attaining the track that we have been sharing with you. Next is about industry and consumer businesses and how we are going to be intensifying measures. There is strong demand and new demand for the lines that we are owning. They're all full in operation. Therefore, it's very important for us to expand our capacity. In order to expand on the contact point of the customers, we will also focus on the human resources in order to allocate the right people for sales and other activities. For supplying system, on the left-hand chart indicates the supply system. Regarding infrastructure and power issues, the Tokushima factory, we are producing the optimal cell. The line is increased and assembly plant. In North America, at the existing Mexico factory, this is going to be increasing capacity for packing and module IoT equipment. It is not in lithium battery, but this is the primary battery. We are going to be developing a new building at China Wuxi in the future in order to fulfill our responsibility for supply for dry battery. Osaka, Nishikinohama, we will be establishing a new plant, and we will be transferring to the area, relocating. In the future, around FY24, these initiatives will be almost finished. Going even beyond, in order to maximize our supply and provision value from starting with a single product business of cell, we have been shifting over to the packing and module businesses. We will be having a further layer up and expanding our applications to expand our value provisions. In order to do that, not only the cell technology, but we will focus on developing system for systems and also intensify the sales and FAE in order to have larger contact points with the customers. As such, we will be creating another next business pillar in order to be strong other than the in-vehicle. Lastly, this is about the contribution to the environment. The upstream and the downstream Process within our businesses, these indicate the CO2 emissions and the ratio. Currently, at our battery plant, we have 14% of emissions, and 86% is emitted from the upstream area, especially for drilling the resources and Processing. The materials will be emitted largely. We need to be utilizing the recycling materials, and we should be decreasing the uses of rare metals. We have to work on carbon neutral and intrinsically work on the upstream. In 2030, we will be having the carbon footprint in order to make our contribution. This one is one of the cases that we are going to be working on regarding carbon neutral for our own plants at FY2022. In 20 plants, five plants have already achieved the target. In FY25, all dry battery plants, and in FY26, all plants in Japan. In FY29, in all global plants in the world, is going to be achieving the target. Along with the initiative, we will be transitioning ourselves to decreasing and saving the energies. We are also going to be working on reducing the usage of rare metals. Rare metal is scarce included within the mineral itself, but rather it is emitting CO2 more when it is refined. Therefore, reducing the usage of rare metal is directly connected with the decrease of CO2. We already finished the development of a cobalt-free Process. We are now working on reducing the ratio of nickel. We need to work on the positive electrode. Right now, for the low carbon footprint supply chain establishment, we are going to be working proactively with the external organization. Lastly, the summary about the midterm management plan. For the management target for FY25, the sales, including the in-vehicle and industry and consumer, we will be expanding JPY 200 billion by our initiative and for the KGI EBITDA compared to FY22, plus JPY 30 billion to aim for JPY 150 billion for regarding the environmental target. We have a plan for FY2031, and we have a target point. KGI, the carbon footprint, will be reduced into half. Through our product, CO2 reduction will be targeted for 60 million tons, and this is going to be done at FY22 with fivefold of decreasing quantity. So we would like to be the energy that changes the future. We would like your support. Thank you very much for your kind listening. SMBC Nikko Securities, Katsura-san, please. Thank you very much for a very detailed explanation. I have two questions. The first question, slide page 12, the increasing capacity. In North America, you will be increasing capacity, and we are thinking behind that increase of 2170 or 4680. Is that the case? That's my first question. My second question, related question, slide page 13, you show the schedule and progress, including this, FY26 through 29. You are thinking about investment, size of investment, and fund for investment. To the extent that you can communicate with us, please share with us. Thank you for your questions. The second question, indeed, we are explaining until the investment plan is decided, we are not able to communicate, but our activities in America, there was a mention about the sites. In the presentation at the outset, I have explained. From a number of customers, we receive specific requests, and we are working. We have been explaining collaboration and tie-up in the 4680 diameter platform. We work with our strategic partner, as we have been doing in the past, so this is one axis, but others, it's a design of the customers by the customers, and 46 and 21, they are different ones, but in what bodies it's going to be used and the cylindrical or the smaller one, smaller diameter is easier to operate, so depending upon specific project and depending upon the timing of the project, we'll be making decisions in that sense. With a strategic alliance partner, we do have 46 diameter, but others at this point, 21. We are not going to exclude that, and there's such a possibility as well in terms of quick response. Your second question, investment. Internally, we are having various discussions, and naturally, business with the customers. After we have come to finalize the project, then we'll be making judgment. So assumptions, of course, we do have assumptions, but we are not at a stage where we are able to make any announcement at all. So I'd like to refrain from responding to that question. Thank you. の質問を。 Next question, please. From the floor, Hirakawa-san from UBS Securities, please. Hirakawa from UBS Securities, I have two questions too. One is maybe overlapping with Katsura-san's question. The increasing the capacity of threefold to fourfold, I would like to ask you about increasing the capacity by threefold. So you mean that strategic customers are already seeing that, or else are you including the North American customers? And in total, you are assuming that the increase of capacity will be needed by threefold, or else maybe you might be needing the capacity increase of fourfold or even more. So I would like to know that. And regarding the 4680, you've been talking about the strategic partner. And for the internal production of the 4680, versus that, what is your strength of the 4680 made in your company? Thank you very much. So first comment and first reaction to your question, it's about how we take it, how we think. The in-vehicle battery is what we specialize in. Then we look at the capability and the reliability regarding the cost. So comprehensively, we must make some selections. Within this condition, one way that we can think is the supplying of the material like CAM is important. And the procurement capability for stability is also going to be included within the supply chain. Therefore, positioning within one area region is very important. The understandable case is, first, regarding share, we need to ensure a level of share. For the targeted region, we must be the first top-ranking company. We're looking for FY31, looking at the market size. And in order to be ensuring our competitiveness, there's one idea that we must do the minimum activity within the area to ensure the share. And in 2031, FY31, for ourselves, that timeline is not that far. During that time, there's various query coming from the customer side, and we are thinking of various strategies too. Right now, we have not come to an agreement with the customers yet. However, on the table, there's various ideas, and there's an area where we could be stable within a certain area. And also think about the future businesses and having two axes, trying to come up with terms, thinking about the strengths and growth regarding the specific area. So it's not adding every factor. So I would like you to understand about that. The second issue, when the partner is creating the 4680, we are not in a position to make any comments about, of course, the other organization creating 4680. We've been working together in order to fulfill the benefit along with them. Watanabe has been working with them too. So the differentiation with the internal production with other companies and ourselves, we cannot mention about this. However, the goal, we have a common goal for this development, and the technologies will be developed from both sides. Therefore, right now, this is related to customer side. Therefore, I will refrain from making any further comment. Watanabe-san, I'm in charge of technology. My name is Watanabe. The strategic partner is producing batteries. And basically speaking, the battery supply is always a bottleneck. So this is one of the solutions in order to solve the bottleneck. As Tadanobu-san mentioned, cumulatively, we have been providing cells over beyond 10 billion. So that's reliability and safety track record that supported us. Those have been supporting our company very well. And the product itself has been having an update for several generations. So when we come to think of this, we've been working with the area for more than 25 years. Therefore, it's not just one-off business. We're working on business that we are always be able to updating. So we are the technology leader. Another point to make is within this, regarding the materials, the electrode material, how are we going to be changing this? This is related to our development, and we've always been taking the lead. Therefore, for the resources and the cost, these must be the source of ourselves' activity, and we would like to take the lead within the development. 質問を受け。 I'd like to move on to the next question. Ezawa-san from Citi Global Markets, please. Thank you. Ezawa from Citi Global Markets, I have two questions. Sales and profit. As I look at the relationship, sales increased by JPY 200 billion in three years, and operating profit will increase by JPY 20 billion. Three years is a short period of time, but looking at the marginal profitability, profit can increase even more. What is the background of saying increase in profit by only JPY 20 billion? Depreciation will increase by how much? And the price drop and the increase in price of materials, are you assuming that, especially the fixed cost? How do you look at this? That's my first question. The second question, ROIC, 12% target. And what is included in the target of 12% ROIC with a production capacity increased by four times? Profit from invested capital will increase that much in three years? I have some doubt. On a consolidated basis of Panasonic Group, you would like to have a double-digit ROIC. Therefore, do you come up with a target of 12%, and do you think that a lower level will suffice, or do you think that 12% can be achieved, especially by the denominator for calculating ROIC? Can you explain? Thank you for your questions. First, medium-term, battery is not something that can be looked at in one or two years. With a longer term, how to design and what is the meaning of that? We have to think about that. Then, in the midterm target for growth, as I mentioned before, development and production capacity will have to be increased. Rapid change occurs, then it's easy to reap the fruit, especially the area where we have the leadership in technology will grow further, and as we become larger and cost included and operation capabilities, we are going to enhance capabilities, as Kusumi says. So investment and development will be investing. Especially, speed is the key, and fixed cost, especially resources, significant increase is focused in the midterm plan period, about around 1,000 people, increase in resources by 1,000 people. And a bit more than half will be the human resources for adding value, including technology. So increasing capabilities for technological development and human resources to support the development. And we are working with customers, and we're focusing upon that so that we can realize the target. So there is a future investment increase, and the numbers, Mizoguchi will be making supplementary comment. Thank you. I'm Mizoguchi. Thank you for your question. First, the balance between sales and profit, JPY 200 billion, and the increase in North America. And the FX difference is also. So in actual sales, about JPY 170 billion. And automotive has a slightly higher ratio of increase. So as we look at the increase in sales and profit, about JPY 40 billion-JPY 50 billion increase in profit from sales increase. And then future cost or the depreciation will increase, and human resources increase for development, and sample costs for new products. These costs are factored in. So those which need to be factored in have been factored in and came up with these numbers. ROIC, 12%, and the meaning of this 12% in terms of return on capital. The recent level of ROIC was not included in the presentation. So let me elaborate. FY22, 14% ROIC, the after-tax operating profit and return on capital. And FY15, the depreciation rate of the investment resulted in an increase in profit. And the industrial and consumer over the past several years, we have not made so much investment. And the sales turned into a system which resulted in higher profit. So ROIC has gone up significantly. We are at that phase. Going forward, FY25, 12% ROIC target. Operating profit target is 9%. So after-tax operating profit can be estimated to a certain extent. So ROIC is going down, which means a slight deterioration of that turnover of capital. But Wakayama and investment for future is included to calculate ROIC target. Thank you. As an image, battery, then automotive is a battery. That was the perception. And I was not able to explain the overall picture and the assets, automotive and the industrial and consumer. I have broken down and explained. As we grow the business, we should have the balance between the growth and the profitability. Naturally, profitability and growth, which is the focus, and keep the balance and grow each of the segments. Automotive, it will be driving the growth and systems. Mostly, it is not selling just the cells. It made into packs and modules and then made into larger systems. So the business model is changing significantly. In that sense, the balance will not change so much. So as we communicate with the energy company, with these two pillars, those which require investment in the short term and in the long term, we will be able to see a stable growth, and we will be communicating from these two axes. Thank you. 次にご質問をお受けいたします。 Next question. Nakane-san from Mizuho Securities, please. This is Nakane from Mizuho Securities. Thank you. I have two questions. So it's about how to take the pricing of the batteries for in-vehicle is my question. Currently, the cost is inflating rapidly, and you would like to respond to it that you have gained consensus. But when we are observing three years ahead, five years ahead, ten years again, there could be a risk where the materials could be having a higher price. And are you able to add the pricing over to the customer's side? Who is going to be covering the cost? And as the position of a battery manufacturer, I would like to know your position. And it all relates to your strategy as well. Another question. So, competitors, when you're going to be making a competition with other companies, the R&D and the productivity or operation, for instance, with the North American customers, if you can maintain the number one share, then is it okay for us to think that things will be all right? But would you be needing the economies of scale and to pay for the R&D and cost from your side without making investment and to expand on the economies of scale? So how are you thinking in order to keep up with the competition? Thank you. For the first point, including the costs and how to add on the pricings, especially for the in-vehicle battery, the consumer business is also a lot regarding the material, the LME, such as various price indexes. There's already a tendency where people are open to be fair, therefore with a rapid fluctuation. Thinking about the timing of the price hike and when we're going to be recovering and collecting the pricing, there could be some time lag. However, as a fair partner, we would like to be able to ensure our position. However, as in pricing, absolute pricing, if we are not able to contribute to the customer's needs, we will not be able to resolve our problem. And we have yet to work on, however, how much can we develop? We cannot assume at this point. So for FY28 or 29, we should be holding a target within the company and to advance our recipe for production. So that we will be creating the level of product that the customers will be wanting, and we can split the cost with the customer side and ourselves. So in other words, currently, within a single year, when we speak about quarters and the first half and second half, maybe the numbers will change. However, in a long time, it will not be that different. However, we must buckle up. Regarding the licensing and how we work on the business model, I think that was what you were referring to. Regarding the scale, if we're going to be pursuing the scale. Yes, I understand you very much because you have been drawing some case. And the needs of the battery for automobile, there's some area that it is unseeable. Even for FY31, we do have some hypotheses for some level. However, there is thinking of various countries. And according to the condition of the current status quo in the world, there could be some additional changes. But it is not a level that one company can make the contribution. So at the level of all the battery manufacturers making announcements, it's also difficult to make a matching currently. Therefore, it's not about scale. However, we would be making judgment whether we could be competitive. When the pie becomes firm, then we must change the strategy. But it is not the timing currently. Therefore, we need to develop a technology to differentiate ourselves, and we need a capability for manufacturing. We need some strength, and there we need, and we have some room to improve. That is our basic idea. Time is running short, but we'd like to entertain questions from two more persons. One person is participating online, Goldman Sachs Securities. Harada-san, please. Harada from Goldman Sachs Securities. Thank you for this opportunity. I have two questions. First question is a simple one. 4680 supply to strategic partner is a basis at this point in time. New customers and customers in Europe, inquiries from them and request for supply is there. So are you able to expand the customer base? That's my first question. My second question is overlapping somewhat to the previous questions. Competitors are investing heavily. Apart from material price, is there a risk that the margin will be under pressure? As you pointed out, industrial and consumers, you move to making modules and systems. But the automotive business, by taking the same strategy to increase the value added, for example, emerging car makers do not have know-how in that area. So they welcome receiving supply in the form of modules or systems. Strategic partners with strategic partners, that is not going to be the business. But with new customers, you can establish such a new business model. Thank you very much for your questions. Your first question, 4680, and the needs for 4680, what's your question? Naturally, it's not that there's none. First, we have to create this, and those which are made in Wakayama, we will be supplying to a strategic partner. So at the development stage, it is not going to concrete specifics, but there are a certain amount of needs. With regards to your second question, that is, aren't we going to have the layout of business model for automotive business as well? As we try to electrify vehicles, then with cells using 2170 and 3,000 or 4,000 can be used. BMS, I don't know whether it's BMS; more sophisticated system is needed, and various conditions and designing algorithms for different conditions and how to secure reliability and safety. How much can we involve ourselves? As we see competition with the evolution of cells, it is not the right timing, but rather we, ourselves and our customers, discuss the borders, and together with the customers, we make it. That will be more rational, reasonable, and have a higher probability of success. So in the current midterm plan and next midterm plan period, basically, we will be evolving the existing business model and increase our cost competitiveness. We'll be focusing upon that. So at this point, increasing the layer to a higher level, we are not thinking of that at this point. One point, follow-up question. With strategic partner, you are discussing in this business. Going forward, in the future, other companies can make at this price, and won't they say that they would like to see the price going down? Or you have an agreement with the strategic partner? The target for the future, we are always having discussions together. And individual business, it should be difficult to respond in concrete terms. But the partner has a strong will to spread and disseminate EV and design the automobiles and design more of the commercial vehicles as well. So the company with leadership, and we will be able to evolve ourselves so that we can secure profitability. With competition and price, it is an individual case. So we build cells so that we can compete even when that situation might occur, and we will continue to do so. Thank you. I understand very well. Thank you. では最後のご質問をお受けしたいと思います。 Now, the last question. So I would like you to have one question from Morgan Stanley Securities, please. This is Ono from Morgan Stanley Securities. One question. On slide 18 and page 12, I would like to ask you about the relationship with these three slides. The capacity itself in FY26, from the graph, I read that it is going to be double from FY23. So 100 gigawatt-hour is going to be the number, I suppose. However, the sales written on page 18, this is around JPY 200 billion in total. And for in-vehicle, it is around JPY 100 billion, just excluding the foreign exchange. And from FY25 to 26, by having a new line output, do you have any plan? So is my image okay in creating such number? And the other one is most of our number will be coming from the 4680 for the increasing part. Am I right? Correct? Please. Regarding the timing, various discussions are ongoing. Therefore, we cannot specify the year. However, as a target, the FY29, which is the end year that we target, maybe during the way heading for FY29, we need to make a big management decision. And whether it be 4680 or not, along with which partner and customers, it all depends on which partner that we are going to be working. Therefore, at this point, it is difficult to share any idea with you currently. So on FY26, things are not that visible, as I assume, during our discussion. This is one of the milestones that we hold. And the detailed issues, once we have some concrete idea, we will come to share with you. Thank you very much. Very well understood. And with that, the Panasonic Energy Company explanatory briefing is finished.