Hello and welcome to Nissan's Fourth Quarter and Full Year 2023 Earnings Session. Thank you for joining us today. First, let me introduce the speakers for today: Makoto Uchida, President and Chief Executive Officer; Stephen Ma, Chief Financial Officer. Today's agenda will begin with a presentation followed by a Q&A session. Now I'd like to turn over the session to Uchida [Foreign language]. Thank you for joining us for Nissan's fourth quarter results for the 12-month period March 31st, 2024. Today we will recap the progress achieved during the Nissan NEXT Midterm Plan, which concluded at the end of fiscal year 2023. Stephen will take you through the details of our full year and fourth quarter results. I will then explain our outlook for the new fiscal year and priorities of our new business plan, The Arc. Fiscal year 2023, excuse me. We focus on the three areas under Nissan NEXT: rationalization of both our product portfolio and production capacity, prioritizing the markets and product segments where Nissan is strongest, and investment for the future in areas including electrification, autonomous driving, and battery technology. With these actions, we achieved our goal of both reducing production capacity and streamlining our product portfolio by 20%. We launched all 12 models ahead of schedule, and the quality of sales improved. We elevated our alliance to the next level. Taken together, these actions refocused Nissan on generating value rather than seeking volume. These steps laid a solid foundation for future growth while maintaining profitability. We have refreshed our model portfolio. Achieved solid profitability. Free cash flow and net cash are improving significantly. We have made strategic investments in future products, technologies, and enhanced our partnerships. We have prioritized returns to shareholders as shown by our resumed dividend. In fiscal year 2023, we delivered steady results. Net revenue increased 20%YoY. Operating profit rose 51%, and net income increased 92%YoY. This was a resilient performance in a challenging market environment with more fragmentation and increased competition. Now, Stephen will take you through our results in more details. Stephen, please. Thank you, Uchida [Foreign language]. In the fiscal year 2023, total global retail sales increased by 4%YoY to 3.44 million units. Excluding China, unit sales rose by 17%, reflecting healthy demand in all regions, including Japan, North America, and Europe. In Japan, unit sales rose by 6.5%, in North America by 23%, and in Europe by 17%, and other markets by 14%. In China, retail sales fell by 24% to 794,000 units. Global production followed a similar pattern, rising by 1.5% to 3.43 million units. Outside of China, output rose 14% to 2.65 million units. Production in China decreased by 26% as we adjusted supply to demand. For the three-month period March 31, 2024, global retail sales increased by 12%YoY. All regions showed a healthy growth, including China, where unit sales rose by 19% and production increased by almost 33%. For the first time this year, sales exceeded 1 million units for a quarter. Globally, Q4 production volume increased by 4.9%. Turning to our performance in key markets. In Japan, unit sales increased by 6.5% amid rising demand for award-winning models such as Sakura and Dayz. The proportion of electrified sales rose to 52%. Reflecting our focus on value over volume, net revenue per unit increased by 12%. Production in Japan rose by 22%, with a sharp increase of 30% in export production. In the fourth quarter, retail sales rose by 2.5%, and production was up by 3.8%. In North America, retail sales grew by 23% to 1.26 million units. Sales in the U.S. increased by 20% to 916,000 units, with good momentum from key models such as Rogue and Sentra. Mexico continued strong sales momentum, maintaining market leadership for 16 consecutive years. Canada saw a solid growth of 34% year-over-year. The U.S. net revenue per unit was down by 8% due to model mix and industry-wide higher incentives. For the year, production in the region rose 24% to 1.24 million units. In the fourth quarter, unit sales rose by 9%, and production was up 4.4%. Turning to Europe, retail sales rose by 17% to 361,000 units. Our electrification mix improved to 47%, and revenue per unit increased by 4%. This reflected solid demand for e-POWER variants of Qashqai and X-Trail. Production was up 12.9% for the year. In the fourth quarter, unit sales rose by 17.5%, and production remained at 81,000 units. Although market conditions in China continue to be challenging, we saw a positive year-over-year growth for two consecutive quarters. In the fourth quarter of calendar year 2023, our unit sales rose by 19% year-over-year. In the first quarter of this calendar year, retail sales grew by 3.3% to 167,000 units. Our Sylphy model remained the market leader in the ICE passenger vehicle segment. Net revenue per unit decreased by 9%, reflecting market conditions. For the calendar year 2023, retail sales were down by 16%, and production was down by 19%. This slide shows our key financial performance indicator on an equity basis for both full year and the fourth quarter. Net revenue for the year increased by 20% to JPY 12.7 trillion. Operating profit for the period increased to JPY 569 billion, representing a solid operating margin of 4.5%. This includes a positive impact of JPY 38.8 billion as we reverse provisions related to legal proceedings following the recent favorable ruling. Net income totaled to JPY 426.6 billion, including the impact of JPY 54.5 billion adjustments. The increase in operating profit and net income compared to April 19 forecast revision is due to the reversal of previously recorded litigation provisions. Free cash flow for the automotive business was a positive JPY 323 billion. Net cash for the automotive business was a healthy JPY 1.55 trillion, even after buying back 5% of shares in Q3 for JPY 120 billion. The share buyback announced March 27 will be reflecting our first quarter result of fiscal year 2024, as the transaction was settled in April. For the fourth quarter of the fiscal year 2023, net revenue rose to JPY 3.5 trillion, and the operating profit was JPY 90 billion, including the litigation impact, representing an operating margin of 2.6%. Net income for the quarter was JPY 101 billion, and automotive free cash flow was JPY 141 billion. Turning to our 12-month financial performance. Net revenue increased by JPY 2.09 trillion to JPY 12.7 trillion. Operating profit increased by JPY 192 billion to JPY 569 billion. Non-operating income, which includes equity-method companies, totaled JPY 133 billion. Our results were impacted by extraordinary losses of JPY 103 billion, which included impairment costs associated with the restructuring in India. Net income nearly doubled to JPY 427 billion. This slide shows the variance factors from last year to this year. Foreign exchange had a net positive impact of JPY 12.9 billion. The U.S. dollar remained strong, with a positive impact of almost JPY 150 billion, but was offset by emerging market currencies, especially the Argentine peso, Mexican peso, and Turkish lira. Raw material costs decreased mainly due to steel and aluminum, and our sales performance had a positive impact of JPY 325 billion, driven by strong volume and model mix. Monozukuri costs had a negative impact of JPY 205 billion, including cost relief for suppliers and increasing inflation, logistics, and regulatory costs. As a result, operating profit improved to JPY 569 billion, even in dynamic conditions, thanks to the strong effort of our employees and our focus on priorities set out in Nissan NEXT. In the final quarter, we saw a JPY 19.4 billion benefit from currency movement and JPY 14.7 billion benefit from raw material. Our sales performance contributed JPY 39.7 billion, while Monozukuri costs increased by JPY 126 billion, which includes inflation and cost relief for suppliers. With other factors contributing JPY 54.8 billion, this led to an operating profit of JPY 90.3 billion. In summary, we have come a long way since the start of Nissan NEXT, improving every aspect of our business and laying a strong foundation for future growth while ensuring profitability. Uchida [Foreign language] will now explain our outlook for fiscal year 2024. Thank you. Having reviewed last year, let us look ahead of 2024. We expect demand for refreshed and new models to drive unit sales growth of more than 7.5% to 3.7 million units. China unit sales are expected to be up [modestly] at 800,000 units. Japan sales are forecast to rise by 3.3% to 500,000 units. North American sales are expected to rise 13.3% to 1.43 million units. European sales could rise 6.5% to 385,000 units and by 8.2% to 585,000 units in other markets. We expect a 2% rise in global production volume to 3.5 million units. Let me walk you through the plan by region. In Japan and ASEAN, we anticipate further sales momentum driven by models including the Note, the Sakura, Serena, and Dayz. We will reinforce our leadership in electrification through a wide range of EV and e-POWER models. In the U.S. and the Americas, we expect growth in the current year to be driven by the key models such as the Sentra, Versa, and all-new Kicks in the affordable segment. We will refresh core models including Armada, Murano, and Infiniti QX80. Sales momentum in Mexico is also expected to continue with Versa and all-new Kicks. Turning to AMIEO. In Europe, the product offensive in electrified vehicles will continue with the Ariya, e-POWER variants of the Qashqai, X-Trail, and Juke Hybrid. In the Middle East, we will launch the all-new Patrol and Infiniti QX80. In India, we will introduce a new Magnite and expand our exports. Lastly, in China, we will continue to develop new vehicles in China tailored to the demands, and we will also start production of the new energy vehicles. We will ramp up sales of the all-new Pathfinder. This slide shows the financial outlook for the fiscal year 2024. Net revenues are expected to improve by JPY 914 billion to JPY 13.6 trillion. We are forecasting operating profit will improve by JPY 31.3 billion to JPY 800.6 billion. Net income is expected to decline to JPY 380 billion. This is the step chart that explains the change from the fiscal year 2023 performance and the fiscal year 2024 outlook. JPY 70 billion is expected to come from forex benefits, and JPY 30 billion is anticipated from raw material costs. Sales performance is forecast to improve by JPY 20 billion thanks to volume increase, partially offset by selling expenses and mix. Monozukuri costs are likely to improve by JPY 80 billion. On the other hand, we expect a total headwind from inflation of JPY -100 billion in costs. Others are expected to have a negative impact of JPY 68.7 billion, which includes the impact of the net credit loss and remarketing, as well as the absence of the positive tentative impact recognized in Q4. We expect all this to result in JPY 600 billion of operating profit forecast for the year. We aim to grow shareholder returns consistently, reflecting the underlying strength of our business. The dividend proposal for fiscal year 2023 is JPY 20 per share. This includes the interim dividend of JPY 5 per share, which was already paid in the first half, and the JPY 15 per share year-end dividend. This is a JPY 10 increase from the prior year. In line with our shareholder return strategy, we are planning to increase dividend payout to JPY 25 or more per share in fiscal year 2024. Our shareholder return for fiscal year 2024 is expected to be more than 30%, including the dividend and the 2.5% share buyback settled in April. Our growth is informed The Arc plan, which bridges the Nissan NEXT transformation plan and our long-term vision, Nissan Ambition 2030. The Arc is a detailed roadmap for Nissan's growth, helping us to achieve our Ambition 2030 goals. The Arc plan, we have grouped our actions into two parts. First, Nissan will focus on securing volume growth through balanced portfolio offerings while taking necessary action for the future. In parallel, we intend to make EVs cost-competitive to optimize our manufacturing supply chain and enhance our market approach. Through smarter partnerships and new technologies, we will deliver mobility solutions with unique innovations. The plan will not only aid our transformation innovation but will create new revenue streams, thus setting up Nissan for long-term success and growth. As part The Arc delivery, we are planning to generate shareholder returns of 30% or more and to steadily increase dividend per share in the coming years. In summary, Nissan proved its strong fundamentals during the transformation period. We are on track to achieve success in 2024 and for the coming years. Nissan will continuously enhance its offering with innovations and improvements at every stage of the product lifecycle. This will enable us to grow and maintain profitability in challenging and fragmenting market conditions. I will close the presentation with a short video showcasing our product offering before we take your questions. Thank you for your attention. From the start, we dared to do more. To go beyond and challenge conventions. With the belief that innovations exist to enrich people's lives. That's why we are excited about what's coming. With diverse models powered by diverse powertrains for diverse customer needs. Tailor-made for excitement and passion. Because when people come first, their dreams never come second. Opening a new world of possibilities. Thank you, Uchida [Foreign language] and Ma [Foreign language]. Now we will open up for questions. Please raise your hand on Zoom, switch on camera and microphone before you start asking the questions. After we call you, introduce your name and publication. Please keep the questions to two per person. Now we begin the question with Uchida [Foreign language] from Nikkei Shimbun. Uchida [Foreign language]. Excuse me. This is Ochiai from Nikkei Shimbun. Do you hear me? Yes, we do. Go ahead, Ochiai [Foreign language]. Thank you. This is the general question. For this fiscal term, this is the first fiscal year The Arc, new business plan. China and other markets remain challenging. In order to The Arc, what is the positioning or significance or anticipation that you have for fiscal year 2024? And the second one, last fiscal year in 2023, you made downward revisions several times. And this full-year guidance for 2024, how are you going to boost the volume? Could you elaborate on this point? Especially in the U.S., hybrid is increasing and there's a shift to affordable markets, so it's very challenging. For this fiscal year 2024, how are you going to reconcile profit and volume? These are the two questions. Thank you. Yes, thank you for your question. Yes. What is the aspiration The Arc? as I described earlier, Nissan NEXT, there were things that we achieved and there are remaining challenges. What did we achieve in Nissan NEXT? As you may remember, in fiscal year 2021, operating profit was a negative. It was a loss. Since then, we have been building a stronger foundation of the business thanks to the efforts by the employees and the support from the suppliers and other partners, as well as dealers. As a result, Nissan, finally, it's not sufficient, but finally, we have strengthened the operation thanks to the better quality of sales at the same time. Now we have to pursue the new business plan. Today, the base volume, the overall volume, for example, before pandemic, which is 2018, compared to 2018 pre-COVID level, our volume is low. So on that point, fiscal year 2024, as you asked, in North America, we need to grow more. We have to work harder. That will be the key point. And this hard work, for example, volume-wise, last year in Q4, as CFO said earlier, 1 million units was what we achieved for the Q4 of 2023. So while we maintain quality of sales, we would like to keep the sales momentum while leveraging on the strong models. Then we can reach 3.7 million units. This is a challengeable goal. And it's important to increase presence while doing so. As I said, North America, looking at North America, as I described, in fiscal year 2023, compared to prior year, we grew by 19%. And going forward, there is the shift of the demand-affordable zone. Versa, Sentra, Kicks are in the segment. They will have an all-new Kicks coming. With these new models, we would like, in these growing markets, to boost the sales volume and increase the presence. At the same time, we have 4 new models coming in the United States. So in that sense, whether it's all-new Kicks and new Armada and Murano and QX80, with these new models, we would like to boost the volume. This is a key. Therefore, in fiscal year 2024 is a year where we, based on the foundation that we built in Nissan NEXT, there are still challenges. Like volume increase is the biggest challenge. As I said The Arc, in 3 years, in total, we would like to boost the volume by 1 million units. In Americas, we would like to grow by 330,000 units. As a first step in 2024, we would like, while the market growth is slowing down, despite this environment, we would like to achieve 3.7 million units at the end of the day. This is the most important thing. Thank you very much. Next one is from Umeda [Foreign language] from TBS. [foreign language] This is Umeda of TBS. I have two questions. The first one is about the forex. Today it's at JPY 555. The yen is so weak. And this forex impact on Nissan and the impact of weak yen on society and the macroeconomy, how will it impact it? This is the first question. The second one is about EV penetration. BEV penetration seems to be slowing down nowadays. How do you see this situation? How do you analyze it? Yesterday in Toyota's press conference, they said that they talked about infrastructure. They said that there's a slowdown in development infrastructure. When do you think this pace will speed up? What are the conditions to be met to increase the sales of EV? And do you need to revise the sales plan? These are my questions. Thank you. Thank you very much. Forex. With regards to forex, I would like to ask CFO to elaborate on later. What is the impact on Nissan specifically in the short term? Today, we see a benefit from the forex, but in the mid and long term, weak yen, whether it's a strong yen, if it's so volatile, for example, as we increase electrification, we need to localize. That will be very important. So in envisaging our strategy, volatility of the forex is not very beneficial. It will be a challenge. That's how we see it as Nissan specifically. And today, with such a weak yen, we need to see how the future looks like. And as I described The Arc, the timing of the investment, as well as according to the market situation, we need to ensure sustainable operation. That is the most important thing too to address forex. If the forex is so volatile, it will be very challenging. And the second question, EV. Yes, as you say, today, this is our perception. EV, shift to electrification, this trend will continue as it is. But today, before we transition to EV, the pace will not be consistent. That's how I see it. And today, in the market, the speed is changing and we notice. In these inconsistencies in the market, of course, electrification will continue. Frankly speaking, it's very difficult to make a forecast. On the other The Arc, are we going to The Arc? no. We are not going to change the strategy, but we will watch how the consumers are behaving and move ahead accordingly. And electrification and shift to EV, these are not the only things that we have to consider. This is our opinion. As the consumer's needs change over time for the long term, for example, in looking at 2028 or beyond, beyond 2028, customer needs on mobility will change. So we need to anticipate these changes and be prepared for it. This is very important. In the Beijing Motor Show, we saw the new values of the new car. We rediscovered the new values of the mobility. After the models coming beyond 2028 will change. So how should we be ready for this in the long-term perspective and how to reflect it as a corporate value? I think this will be a key challenge. So it's not a straightforward answer, but frankly speaking, three years down the road, five years down the road, can we have a clear forecast? It will be very difficult. Having said that, that directionality is described in The Arc. We monitor the situation carefully and depending on the circumstances, we will make sure we are evolving as a company. This is very important. Forex impact, macroeconomic impact. CFO, do you have anything to add? Thank you, Uchida [Foreign language]. So for us in the car business, obviously, as we stated many times in the past, we prefer a stable currency. We prefer for long-term less volatility because we need to invest for the future and it takes a lead time. So we always want to invest in the most efficient and frugal way. And in the past, Nissan always tried to invest and produce what we sell. So localization strategy has been a key factor of our strategy in the past. And that will continue to be so. Current yen is very weak and is kind of still fluctuating quite a bit. We are hoping for stability in the near term. Whatever the level it is, we're hoping for stability. Also, as the regulations are getting more clarified among all the different geopolitical considerations, these two are the two big impacts to deciding or influencing our strategy for investment for the future. So right The Arc have investment plan where we are already considering these kind of factors, including the yen slightly strengthening over term. But we hope that our main preference is that we have a stable currency so we can plan better for the future. Thank you. We'll take the next one from Obi [Foreign language], NHK. Obi [Foreign language]? Do you hear me? Yes, we do. Go ahead. NHK, Obi is speaking. Thank you for the presentation, gentlemen. I have two questions. Both of them were what was publicized March. one is the partnership discussion with Honda. March, during the joint press conference, I asked you a question directly, and it has been two months since then. No, three months, maybe. And today, what is the progress of the discussion? Where are you today with the talks with Honda? And when precisely are you going to come to a conclusion? What's the visibility here? This is the first one. And the second question is about the violation of the Subcontract Act. Uchida [Foreign language], you had a remote digital press conference. You are going to submit the report to the Fair Trade Commission, which is the prevention of recurrence. Where are you in developing the recurrence prevention? What is the timing? What is the schedule going forward on this subject? These are the two. Thank you. Thank you for your question. Starting with the second question, which is about the Subcontract Act. Today, under the guidance of the Fair Trade Commission, we are building an action plan. At the latest, by June, we would like to consolidate them and submit it to the Fair Trade Commission. The first question, which is about the partnership talks with Honda, feasibility study on the 15th March. as I said, platform, onboard components, and the complementary products, we are looking into a wide scope that we are discussing. Today, we formed discussion teams and each active discussion is underway. We are holding an in-depth discussion among the teams. This is where we are today. Both CEOs are monitoring the status periodically. That's how much we can say. We cannot give you all the details at this moment. But as I said last time, with a sense of speed, as early as possible, we would like to reach a good conclusion for both parties. That's our intention. Honda, collaboration with Honda. I have a personal interest here. The top executives are involved in the meeting, you said. What is the ambiance of the discussion between the two parties? Well, this is my personal insight, by the way. As I said in the press conference, future, or rather in the near future, the mobility will largely change. And if we think about intensifying competition in the market, if we want to grow, scalability will be important. And we need to transform ourselves. So I don't know. This sense of urgency, if I may, sense of urgency is shared by Honda and Nissan teams. So in that sense, well, so what will be the best way to make it happen is what we are discussing. But it's, I don't know how to put it. We are holding open discussions. That's how I see it. So we are, with the ideas translated to the future growth of two companies, we are ready to have an open discussion. That's the atmosphere of today. Thank you. Thank you for your thorough explanation. Thank you. Next person is Matsuoka [Foreign language] from Asahi Shimbun. Matsuoka of Asahi Shimbun Newspaper Company. Thank you very much. Regarding violation of the Subcontract Act, I have one question. [Foreign Language] It was excluded, but what would this mean in terms of impact to the financial results? What was the degree of impact to the financial results you announced and was it significant or not? Thank you very much. Regarding specific numerics, CFO will add some comments. Please. Sure. So the impact was roughly JPY 3 billion. We booked it in December and it was booked to cost of goods sold. So it was already recorded in our accounting as of Q3. Did that answer your question? Excuse me. The impact was not as significant that, oh, you are talking about the financial impact is JPY 3 billion. So he is right. But on the other hand, besides the violation of the Subcontract Act, looking at the supplier's status, we are providing support which is necessary. In the end March, i talked about it and we booked it in our financials. Thank you. If that is the question, that will be the answer. We move on to Hans Greimel from Automotive News. Hello there. Hans from Automotive News. Thank you for taking my question. I'd like to ask just some basic questions about the status of operations. Starting with, can you give us an update on what your current global production capacity is and what your global production capacity utilization rate is? That's including China. And maybe if you want to break out China separately, that would be fine too. And could you please give us a sales ratio of your electrification or electrified products in China? And what would you give yourselves as terms of a grading for your achievement of Nissan NEXT on an ABCD American scale? A plus, B plus, B, B minus. You missed the volume goals by quite a wide margin. The operating profit margin was not quite achieved either. I'm wondering how you rate yourselves in terms of your achievement of Nissan NEXT. Thank you. Hans [Foreign language], thank you very much. Yes. As CFO is confirming the detailed numbers now, Nissan NEXT achievement rate, when I measure it, what will be the grading? That was your question, right? So as I said, what did we achieve? Yes, quality of sales was maintained while we were able to strengthen the operation. Is it sufficient? No. Therefore, is it B? I'm not sure whether it's a B or not, but it's not an A. It's not an A. That will be my answer. For example, operating profit, the decline in China impacted us. But excluding China, operating margin was 4.2%, which was the milestone in Nissan NEXT. Equity method, it was 4.5%. This was actual performance. So in that sense, financial fundamentals are solidified. That's what we can demonstrate from the numbers. While we maintained the quality of sales, we made sure the Nissan brand is appreciated by the customers in all the regions. Around 2020, compared to the 2020 situation, we have made a large improvement. However, market environment largely changed at the same time. So in the changing environment, the question is how to increase the presence going forward. That's what I The Arc. this is the most important point. So we need to make this a reality. And as I said earlier, if you look at the figures, you will know. After the pandemic, pre-COVID level, compared to pre-COVID level, how are other car makers coming back? Nissan is a bit slow. It's not fast enough. So as we described The Arc, in order to achieve the numbers The Arc, first, we need to boost the base performance. At the same time, we have to prepare for the future electrification at the same time. That will be the key message The Arc. having said The Arc is about the next three years, but there's something beyond three years later and the customer's value will change over time. So the question is how to address these changing demands, including Nissan NEXT? How can we provide the value that matters to the customers? That's what we are working on. Stephen [Foreign language], if you could answer some of the numbers he's asking. So Hans, I apologize. I have to come back to you on the utilization ratio a separate time. I thought I had a number here, but I will bring it with you and explain to you afterwards. For electrification ratio in China, I just checked. As you know, we don't have yet a good offering other than Ariya in China. And we had the Sylphy e-POWER, but our ratio right now is only roughly last year was about 6%. But within this next couple of years, as which has somehow mentioned, we are about to launch four or five new energy vehicles on the Nissan brand and also another three or four on the Venucia brand. So first of these Nissan brand new energy vehicle, which is EV, it will come within a year. We are hoping to have some good recovery and results from those few models coming up. For the capacity and utilization ratio, I don't want to misquote. Let me come, if you allow me, I'll come back to you on that specifically with numbers afterwards. Thank you. You don't also have a good figure for just the basic capacity that you have currently? As we talked before, the capacity is a function not just of the physical buildings and equipment, but also as a function of how many people we have, also how many lines we still operate. As you remember, in Nissan NEXT, we closed some factories like Indonesia and Spain. And then we also idled many lines in some of the factories in China, in Mexico, in many other countries. I believe we idled some even in the U.S. during the pandemic. And then since then, we have reactivated some of the lines. For example, in Mexico, I believe in our CIVAC plant, we reactivated line 1 again because the consumer demand in the U.S. market is asking for more affordable vehicles, which we produce the Versa. So we therefore wanted to produce more. So we reactivated a previously idled line. So this is a we flexibly adjust. So if you ask for a specific capacity number, I need to give you the operational capacity number, which is what we're really working on right now, which lines are operating, how many people, how many shifts. For sure, I can tell you that we have moved to all 2 shifts globally or 1 shift. It's no longer 3-shift operation other than sometimes in Mexico. We operate 3 shifts. And then we have now looking at reactivating some of the lines that we had idled in the last few years. So please allow me to come back to you on that one. Nissan Arc, as we said in Nissan Arc, we said China, excluding China, it's 78% in 2023. That's the figure that I gave you. And excluding China, we would like to increase it to 90% during the midterm plan. This is our assumption. Having said that, if you need details, CFO said we will give you the figures later. In fiscal year 2023, if we include China, how much is it? It's 68%. That's what I said, if I remember correctly. Okay. We'll take our last question now from Oe [Foreign language] from TV Tokyo. Oe of TV Tokyo, thank you very much for this opportunity. I have a question to Uchida [Foreign language]. Q4, operating profit, if we look at the variation analysis, mono cost, JPY 127 billion, JPY 125 billion, this is a negative. Reducing the burden of suppliers, is this cost included? How much was it? Can you inform us once again how much that was? And just to confirm, reduction of burden on the part of the suppliers, this was after the recommendation by JFTC regarding the violation of subcontract acts. Is that correct? Second question is related to my first question. March, the JFTC issued a recommendation regarding the violation of the Subcontract Act. Thereafter, has there been suspension all at once of the reduction of the payment or is it being phased in? So is this reduction of payment still continuing? What's the status quo? Thank you very much for the question regarding the violation of the Subcontract Act. Thereafter, we have suspended all such measures. I think it was mid-March when we did the press conference that we announced that we will be doing that or stopping those measures all at once. And you also asked the question on Q4. End March, we announced a downward revision and the number of units declined and that was one impact. And then to the suppliers, sorry, Arc. After the finalization of Arc, we fixed the numbers regarding the future units. And we have to estimate the payments that we do to the OEM and that was clarified. And then further global supplier cost burden, we did an internal analysis and we estimated the amount of payment we have to make and also upfronting the development cost for the implementation of Arc. So we gave the number JPY 60 billion in total. Part of that JPY 60 billion is the engineering development cost. The remaining cost would be the support to the suppliers. I recall that that's what I had said. Now, going forward, why are we making these assumptions and doing the estimations? The suppliers are faced with a tough environment. As an auto manufacturer, under Arc, we had fixed the numbers regarding units because we were able to clarify what we can do and what we cannot. It is based upon that responsibility that we will be supporting the suppliers. Under Arc, with electrification, we want to increase cost competitiveness along with the suppliers. From such perspective, we have to estimate the burden being borne by the suppliers. We will continue to do that analysis and continue to provide support. That's the principle. When you look at the 2024 budget, inflation impact JPY 100 billion has been booked. That includes the support to the suppliers in terms of reducing their burden. Our principle is to grow along with the suppliers. Based upon that goal, we will be bearing such costs. Did that answer your question? Thank you so much. By the way, in our interviews, I heard some suppliers saying that they don't want the reduction of payments to continue, but that is continuing. Maybe you cannot grasp the reality as a whole. In anticipation of this, you are going to build a recurrence prevention plan. Recurrence prevention plan is about the violation that we committed this time. But as I said, as we enhance the partnership with the suppliers, for example, the suppliers' difficulties, the difficulty that they face, because going forward, the markets will be fragmenting and it will be challenging. So in order to work together with the suppliers, we need to face them and hold good discussion with them. This is very important. So if the suppliers are saying as such, we need to communicate with them so that we are aligned and be able to work together for the future growth. Thank you. With that, we will conclude today's session. Once again, thank you for joining us. If you have further questions, please direct them to Nissan Communications team. Have a good evening.