Good afternoon, ladies and gentlemen. Thank you very much for coming. We'd now like to start this 2024 financial results debriefing meeting. I'm Ueda and I would like to serve as the MC for today's session. I really appreciate you for coming. First, I would like to introduce Masahiro Yamamoto, the Chief Officer of the Accounting Group, to report on the financial results of the FY 2024 second quarter. We would like to express our heartfelt appreciation to our customers around the world who chose us, as well as our shareholders, dealers, and suppliers who support us. First, let me provide a summary of the second quarter of the fiscal year ending March 2024. Operating income was JPY 2,559.2 billion. We are grateful for the support of many stakeholders, including suppliers, from production to logistics, sales, and services. In addition, our operating income increased compared to the same period of the previous fiscal year as a result of selling each car with care and at prices that match the product appeal. We have refined on making ever-better cars. As for the full year forecast, we have revised the forecast upward from the previous forecast to JPY 4,500 billion, in light of the impact of exchange rate fluctuation, as well as our efforts to improve profitability. The interim dividend will be JPY 30 per share, a year-on-year increase of JPY 5, and we plan to proceed with JPY 100 billion as the maximum. As for the share repurchases, we intend to continuously evolve our cycle of growth together with stakeholders, aiming to realize the mobility society through the business foundation we have built up, and through frontline efforts that maximize the effectiveness of such. First, let me explain our financial results for the first half, ended September 2023, covering six months from April to September. Consolidated vehicle sales for the period was at 4,744,000 units, which was 114.1% of the consolidated vehicle sales for the same period of the previous fiscal year. Toyota and Lexus brand vehicle sales was at 5,172,000 units, which was 109.91% of such sales for the same period of the previous fiscal year. The sales volume increased in all regions. Also, we increased the sale of electrified vehicles, mainly HEVs, with electrified vehicles constituting 35.3% of the total sales. Consolidated financial results were sales revenue of JPY 21,981.6 billion, operating income JPY 2,559.2 billion, income before income taxes of JPY 3,521.5 billion, and net income of JPY 2,589.4 billion. I would like to explain the factors which impacted operating income year-on-year. First, the effects of foreign exchange rates increased operating income by JPY 260 billion. Cost reduction efforts decreased operating income by JPY 110 billion, due to the impact of soaring materials prices. Marketing efforts increased operating income by JPY 1 trillion 290 billion, due to an increase in sales volume, improvement of sales mix, and price revisions, mainly outside of Japan. An increase in expenses decreased operating income by JPY 220 billion, due to an increase in labor costs and investments in areas such as digitalization. We also experienced a positive uplift of JPY 197.8 billion, largely due to swap valuation gains and losses. As a result, including overall impact of foreign exchange rates, swap valuation gains and losses, and other factors, operating income increased by JPY 960 billion year-on-year. Let me explain the operating income for each region. Japan increased year-on-year due to strong sales. North America, Europe, Asia, and other regions also increased year-on-year, supported by strong sales and price revisions based on product competitiveness. In the next slide, let me explain about the business in China, as well as financial services business. As for business in China, due to steady demand for HEVs, our strength, we are maintaining Toyota and Lexus sales volume. The operating income of consolidated subsidiaries and our share of profit of investment accounted for using the equity method, both decreased year-on-year, due to the fluctuation in foreign exchange rates and increase in selling expenses. Regarding the financial services business, operating income, including swap valuation gains and losses, for the fiscal year decreased year-on-year, largely due to the decrease in margins. Let us now move on to the shareholder returns. The interim dividend for the current fiscal year will be JPY 30 per share, an increase of JPY 5 compared to the previous fiscal year. We will focus more on dividends and aim to increase dividends stably and continuously in order to reward our long-term shareholders. As for share purchases, during the current interim period, we will conduct share repurchases flexibly, taking into account our share price levels and so forth, with the maximum acquisition limit of JPY 100 billion. Now, let me talk about the outlook for the 2024 fiscal year. For both consolidated vehicle sales volume and Toyota and Lexus brand vehicle sales volume, our previous forecast remains unchanged. For the regional breakdown, while Asia will decrease, reflecting the uncertainty in markets such as China, Thailand, and Vietnam, we forecast an increase in North America and other regions where a robust market is expected, and in Europe, where we expect a recovery in supply. Although BEVs will decrease, reflecting the decline in the Chinese market, we expect a total electrification rate of 37.2%. Next? . The full-year consolidated financial forecast. We have adopted the full-year foreign exchange rate assumption of 141 yen per US dollar, 152 yen per euro. Based on this, we forecast for the full year, consolidated financial performances are revised upwards, resulting in sales revenues of JPY 43 trillion, operating income of JPY 4.5 trillion, income before income taxes of JPY 5.55 trillion, and net income of JPY 3.95 trillion. I'd like to explain the factors that we believe will impact operating income. First, we expect the effects of foreign exchange rates will increase operating income by JPY 1.18 trillion. Cost reduction efforts will increase operating income by JPY 100 billion. We expect marketing efforts will increase operating income by JPY 370 billion due to an improvement in sales mix, as well as price revision, especially outside of Japan. Increase in expenses will decrease operating income by JPY 110 billion. The factors that we expect will impact operating income compared to the same period of the previous fiscal year are as shown. Thank you very much. Now, we would like to introduce the Executive Vice President and CFO, Mr. Yoichi Miyazaki, who will tell us about our growth strategy of the company that we aim at. The next speaker is Mr. Miyazaki. Thank you very much. I'm Miyazaki, the CFO. Regarding our financial results, Of course, Yamamoto has already explained, however, our profit structure is steadily improving. We believe that the foundation for such sustainable growth has been laid thanks to our customers around the world, who chose us, as well as our shareholders, dealers and suppliers, and all other stakeholders who support us. Once again, I would like to express my deepest gratitude. We intend to further strengthen this foundation with our many stakeholders who support and sustain us from a medium- to long-term perspective from the past, present, and into the future. Today, I would like to talk about the kind of growth we aim to achieve. First, let me talk about the characteristics of our business foundation. Our business has three characteristics. First, we have a full lineup of vehicles worldwide and a balanced regional representation. Second, we have a global customer base of more than 100 million units. And third, we offer hybrids, which, provide both CO2 emission reduction and profitability. These characteristics lead to the stabilization of our earning power, which is less susceptible to the effects of fluctuations in economic and market environment in each country. Another major point is the careful timing of our investment decisions. Our comprehensive assessment of investment in BEVs and batteries, while considering the energy situation and infrastructure of each country, the evolution of technology and changes in actual customer demand, has enabled us to achieve a strong financial foundation upon which we can promote investment for the future. This financial foundation has been made even more successful by the steady, continuous improvement activities of our suppliers and those on the frontlines of manufacturing and logistics, as well as our dealers. On the frontlines of manufacturing, we are working to improve quality and productivity by accumulating second-by-second improvements, reducing the burden on workers through digitalization and visualization, visualizing the skills of our skilled craftspeople. On the frontline of logistics, amid a shortage of truck drivers and ships, we have been making improvements by drawing on wisdom of related companies. As a result, in parts distribution, we have simplified routes and increased loading capacity, and in finished car logistics, we have reduced vacant space rates by jointly transporting vehicles with other companies. On the frontlines of sales, we are utilizing digital transformation to build a system that links production, transport, and sales, to provide customers with accurate delivery date information, and to deliver vehicles quickly and without waste. We intend to continuously evolve our cycle of growing together with stakeholders through the business foundation we have built based on making ever-better cars initiatives, and through Gemba or frontline efforts that maximize the effectiveness, including the efforts of related parties. We will continue striving to deliver ever-better cars that meet the needs of our customers in each region, develop new customers in emerging markets, and further strengthen our unique and solid business foundation. We also plan to expand and strengthen our investment in the future, including in BEVs, hydrogen, software, and energy, and increase touchpoints with our customers and alliance partners beyond the automotive industry, with a total package. That should lead to the expansion of our business domain toward becoming a mobility company, and the transformation of our corporate group's business structure.... Next is investment for the future. At our technical and manufacturing, or Monozukuri workshops, we have shown you our technologies and skills that have been accumulated over the years. You don't just wake up to find yourself in the future. The future is made up of the steady accumulation of day-to-day activities of today. To leave many options open for the future, our engineering efforts will drive investment in various advanced areas, and we plan to actively sow the seeds for the future by combining manufacturing techniques with digital and innovative technologies. And for key investments in mass production, we plan to determine investment timing based on the technologies and skills we have honed from a long-term perspective, while closely watching market trends. When it comes to shareholder returns, we aim to continue to increase dividends to reward long-term shareholders. Finally, here is our capital strategy. Our transformation into a mobility company requires a muscular balance sheet. While selling strategic stocks that have declined in significance to our holdings and conducting home-and-away activities within our corporate group, we have been building alliances to accelerate our transformation. By continuing to reduce our number of strategic shares, reviewing growth, groups, cross-shareholdings, and utilizing more effectively treasury stock and cash on hand, we aim to build the optimal structure as a mobility company and maintain and improve our competitiveness. In summary, to realize a cycle of growing with our stakeholders, we will continue striving to strengthen our earning power, accelerate investment for the future, utilize more effectively our accumulated assets, and create a new structure as a mobility company to gain a competitive edge. Precisely because this is an age in which it is hard to predict the future, we hope to work together with your support and encouragement to create the future of mobility. To this end, we would like to use the results we have been able to generate, thanks to our many stakeholders, as a source of growth together with our customers, shareholders, suppliers, employees, and local communities. If we do not act, we will not be able to carve out a future for ourselves. We hope that you will also continue to look forward to what Toyota will achieve and support us in the future. Thank you very much for your attention today. Thank you very much. Now, we would like to entertain questions, so, please wait for a few minutes, till we prepare for that. Thank you. Now, we'd like to start the question and answer session. So the people who will be responding to the questions, please come up to the stage. I'd like to introduce the speakers today. The Executive Vice President and Chief Financial Officer, Yoichi Miyazaki; Chief Officer and the Chief Communications Officer, Jun Nagata; and Masahiro Yamamoto, Chief Officer of the Accounting Group. So, please excuse us to be seated, so that the speakers will be seated as well. Now, we'd like to entertain the questions, so, from the floor as well from online participants, so we'd like to have a separate session. The first is the question to be entertained from the people in this hall, in this room. Those of you who have a question, please raise your hand and speak to the microphone. And we'd like to give chance to many—as many people as possible, so please refrain from asking more than two questions. So two questions per person, please, and thanks for your understanding and the person in the middle row, please. Inagaki of Asahi. Thank you very much for this opportunity. So about this, the outlook of this full year, the JPY 1.18 trillion, is that a good figure? But, 141 yen to the dollar, that is, currently the deflation of yen is still ongoing. So what about your outlook on the exchange, foreign exchange rate? Do you think that it will further be adjusted upward? And the second question is related to this foreign exchange rate. Yen is weak, and which is actually pushing up this raw material expense, so that's a negative factor of the weak yen. How do you perceive that, the negative impact? On behalf of TMC, of course, the exporting companies tend to enjoy the benefit of this the weak yen. However, what is optimal level of the foreign exchange rate? How do you perceive that? Thank you very much for your question. Well, as to this, the fluctuating foreign exchange rate, and what is our assumption in our company, like, automatically, that we just base upon the past results, and then this future assumption is based upon that. So in the remaining six months, 140 yen to the dollar is the current assumption, so that is the level of this assumption. However, as to the fluctuating exchange rate, what is the impact upon our company? Well, yen, it, it's weak yen is good or bad is not the issue. But foreign exchange rates, I think the stability is something we want to happen. That's something we appreciate, stable exchange rates. At TMC, in our mother country in Japan, we would like to protect the automotive industry, and we would like to continue to produce here in Japan. In the past, the friendly yen was so high, and then, and, the Great East Japan Earthquake struck. During that difficult time, rather than shifting the plans to overseas, we continued creating employment by building the plants and then continuing operation to contribute to the local and regional communities in Japan. So we have a strong basis here in Japan. That means that, when we export vehicles from Japan, of course, in the current phase of the weak yen, there's an effect, and then it might push up our income and the revenue. However, when you look at the overall supply chain, the Japanese yen is weak might be positive, or it could be negative in some other regions. So it just depends upon which region you are talking about. So what we want is a more stable, the fluctuation of this exchange rate. We build this production plant, and they take a deep root in that, the community, and we cannot quickly shift your production sites easily. That's my answer. Thank you very much. Thank you very much. Next question, please. Yes, I see your hand in the first row. Ikeda from Sankei Shimbun. Now, I would like to ask you about the Chinese market. For the second half of the year, what is your outlook for the market? In the first half, the production level was rather low, and the sales level was maintained from the previous year, as I understand. After the second half of the year and onwards, what will be the competitive landscape, and what would be your sales projections? A related question to that would be about your BEVs sales forecast. 200,000 vehicles was the original plan. Now you've reduced that amount in your new forecast. Is it because the demand for BEVs has declined, or is it because of Toyota's product plans, something specific to Toyota itself rather than the market? These two questions related to the Chinese market, that's the first part of my question. The second is, now, hybrid, including PHEV, are growing in your business. Earlier, Toyota's hybrid has garnered the same profitability as ICE vehicles. Now, in terms of the plug-in hybrid vehicles, is the profitability on par with the ICE vehicles? Yeah, the profitability of BEVs is the second question of mine. Thank you. Thank you very much for your questions. In terms of the Chinese market, I would like to respond. First of all, as for the market itself, BEVs market is growing, centering around domestic OEMs. Ikeda-san has mentioned, we are maintaining our share of the market and remain stable. As Yamamoto-san mentioned earlier, the very strong intensive discount competition has begun, especially in the area of BEVs. Under such circumstances, local OEMs in China, as well as incumbent OEMs, are competing very fiercely in terms of prices. Therefore, the discount race has started. We plan to maintain our share of the market, and currently we are maintaining it, and going forward, that would remain our assumption going forward in our business in China. Our BEVs, as has been mentioned, is the area we have downgraded our forecast, but then our hybrid vehicles are expected to increase, so the total number of vehicles that we can sell in the market will remain. That is one of the ways of avoiding the price competition. BEV units are declining. Why? Well, because of the fierce price competition is one factor. Actually, in the eyes of the customers, they have more choices and options. bZ4X and other Toyota vehicles still have room for improvement, and that's the message we are receiving from the market. We are talking about cars. We improve our models periodically, and therefore, going forward, we will continue to do so, responding to what the market tells us. As for the second point, I'd like to ask Yamamoto-san to respond. Thank you very much for your question. About the profitability of plug-in hybrid, which is on par with hybrid vehicles. Thank you. Thank you very much. Next is the person wearing a white jacket around the middle row, please. Thank you. Nagai of TV Tokyo. I have two parts of questions. First, about this, as a strategy and policy-based shareholding. Mr. Miyazaki mentioned that you would like to reduce the cross-holding, and you would like to really revise that with even within the group companies. But you refer to that now, at this time. Now, what is the time scale that you would like to further revise or reduce the holding of the cross-holding of those policy-related shares? The second is idea on this pay rise, pay raise. Different companies during the latter part of the half of this year, they would like to raise this, the labor cost, and then they will have additional spending for that. But what is the policy, and what is this cost related to the labor cost of this, some of these suppliers and others? What do you think of that? Well, as to the policy and strategy related cross-holding of shares. During this, the previous quarter, the announcement of this financial results, I already mentioned our philosophy and concept on that, and you really urged that we should be more clear about that, of the shareholding. After the end of the first quarter, the announcement that we gave you our idea, and this time, again, the including even the group cross cross-shareholding, that we touched upon this policy on this shareholding. And the graph I showed you also shows that, first, we have done some of the measures and implemented measures. Our thought is unchanged, the same idea. When there's no longer any significance of cross-holding the share and so on, we revise it. We might make that money, and then will be the financial resources for investing in the other new areas. We will switch the asset mix, and then we find the new partners. We will invest in new areas. That is why we like to revise the cross-holding of the shares. As to this group shareholding, we apply the same concept. Optimal business within the group, we like to achieve that optimal business, and then formation, the structure should be revised accordingly. Together with other companies, we are implementing this home-and-away concept. When our lineup is changing, we would like to really promote that kind of concept in the future as well. As to the question about the timing, when we will implement that, well, when the need arises, we'll immediately implement that needed action. That's our thought. Therefore, it's not something for the sake of this particular goal that we have the basic concept. When the need arises, quickly we will implement our action. That's what we'd like to do. As to the second question, Nagata will respond. Thank you very much. As to this, our thought on the salary hike or pay raise, well, as Miyazaki also touched upon that at the beginning. For the sake of stakeholders, so we've been building a cost together with the other stakeholders. Our message is constant: We like to create the future together. Automobile is something that we work together and build together. So the first question is, our concept on the pay raise within TMC. Of course, naturally, that our employees and we are the partners, so that for this, the term to the next fiscal term, the inflation is taking place and other factors pushing up the living costs. So, and they have worked so hard, and then we of course appreciate their hard work. So taking all those factors into account, we like to really have a good talk with employees. Once a year, we have a Spring Labor Offensive, but that's not all. Every month, we have a dialogue with the labor union members to try to improve the situation, and then, another improvement, and one after another, we improve. So taking that into account, the pay raise level will be considered for the next year. As to the second question, about how do we respond to that with regard to the suppliers' employees? Because the raw materials and all these things, the costs increased. Due to the weak yen, I think this, the procurement became so expensive, especially raw materials and electricity supply, as with the pay raise related areas. Since last year, we have taken that into account, and then we paid these accordingly to the suppliers. And we will maintain that stance, that policy this fiscal term, so that to the people around our stakeholders and suppliers, we will pay them accordingly. And then how should we push that up for the Tier Two and other suppliers? So eventually, our message will be conveyed to all the suppliers, including Tier One to the rest. Thank you. Thank you, Inagaki-san, question. I have to add about this question, just additional one comment. In my presentation, we talked about a shortage of truck drivers and logistics, and transportation is issue. And so in that sense, of course, for the logistics costs, I think in... This is the area we want the improvement, and we will extend a cooperation. As to the transportation costs, we are negotiating with this logistics company to raise the fee for them, so that the effect of should be the increased reward for the truck drivers as well. So that's something we are talking with this logistics and transportation company. So we hope that we will really pay accordingly. Thank you. Thank you very much. Next question, please. Fourth row, alongside the aisle, please. Inajima from Bloomberg. Thank you very much. EV exports from China is something that I would like to ask about. In addition to that, will that have impact to Southeast Asian Toyota businesses? What is the immediate situation and your outlook going forward? And also, higher interest rate, will that have any impact to your procurement as well as sales? Once again, the immediate situation and the outlook, I'd like to ask. Do you have any responses to those developments? Thank you very much. I'd like to respond to the first question of yours. The BEV exports from China was the question, and how that would impact our operations in Southeast Asia. Now, BEV exports from China is increasing, and we have confirmed that with stats. Thailand and other countries have seen batteries becoming a certain industry segment. Now, for the future outlook, most probably, Chinese BEVs and other OEMs will continue to strengthen their exports or expand their operations overseas. That's something we have to expect. What do we do about it? Well, I'm sure you all know it's not that we don't have the battery EV lineups. The question is when we actually introduce them and launch them as products. I cannot be too specific, but from China, Japan to Southeast Asia, and the Chinese exports have different levels of tariffs in different countries. So at what timing we consider local production or at which timing we start exporting from Japan to Southeast Asia, our BEVs, we really have to be watchful of the market situations as well as the competitive landscape going forward. Thank you for your question. In terms of the higher interest rates, especially in the area of sales and financing services, I believe, you're very right, especially in the United States.... interest rates are being raised, and in terms of procurement, the margin of profit is declining. But the financing business of ours is not really losing steam. It's still stable because, because of the residual value, that is, the cost or the value of the used car remains very strong. Overall, the used cars have maintained a higher price points. So what we hear from the market is the power of the products, which maintains the residual value of the used cars, contributing to profitability. So that's the value of coming up with powerful products, and that certainly has positive impact to the profitability. Thank you for your question. Person in the second row from the back. NewsPicks, My name is Hira Oka. And then will there be any change to investment practice? Because the first is that, in this financial awareness, that cash seems to be accumulated a lot in your company. Six months ago, at the press conference, you said that the share price was a bit down, so that you mentioned about the shareholders. But as of now, but your share prices went up to a high level. But of course, it's not something you would determine by your company, I'm aware. But the share price is high, so shareholders are really expecting the further growth in your company. And then, so the more investment means the more return, and the shareholder price is so high. So maybe capital cost, funding cost is going down for your company, I recognize. So you have that, that abundant cash, and it might to be spent as a dividend payout to the shareholders. But maybe stakeholders really expect that your company is to grow further. Maybe you can invest that into R&D. That is for the sake of the future. Is it likely you invest more for R&D and other future projects? Thank you for your question. In this interim announcement figure, well, our feeling and it's on that. That's something I'd like to touch upon. Because in our presentation, I have also tried to convey you this message, but in this announcement of the financial results, of course, the people who purchased Toyota model and then love them, we should really appreciate the users, so that the number really reflects that, we should really express our gratitude. There are lots of customers who are waiting for our vehicle. As soon as possible, we like to deliver the vehicle. Therefore, the suppliers, and then manufacturing plants, and logistics company people and others are working hard to deliver it as soon as possible, dealers as well. So I'd like to take this opportunity to thank all the stakeholders. Because of your hard work, we finally achieved this good number this time. As a result, and in addition, in each of the offices and the frontline fields, these partners were supported by the local community residents and other stakeholders. So it's all thanks to all these people who contributed to these numbers. So I cannot really think of the better words, but anyway, these earnings, the profits, are not to be used for our own sake, but rather, we'd like to spend it to transform the Japanese automotive industry. How can we create and explore the new mobility business here in Japan, and so on? So that's where we'd like to make further investment, so that we can return this to the society at large. So one company alone cannot change the future of the automobile. Multiple companies and we should form a partnership, and we'd like to actively invest in new areas so that, how can we change, transform the future of the automobiles? That's something we'd like to explore. And the result of these efforts, we like to further strengthen our earning power. As I said, again, I would like to return that, the benefit, back to the stakeholders. And with their support, we'd like to go up this next step. So we'd like to steadily turn this good cycle. That's something we'd like to do. That is the basis, our foundation, and then we decide on where to invest further. We have to really sow different plants, and what kind of seeds are needed, is not yet clear. We will plant the seeds, sow the seeds in many places and explore different possibilities, and then we might create a new species of plants, and so forth. That's something we'd like to try. Thank you. Another question is that as the domestic production, foreign exchange rates are likely to really change, fluctuate much. But ten years ago, so yen used to be strong, so the domestic employment and suppliers had to be protected, and then, and as a mother plant. In the short term, it's not really a positive situation, but you still endured through the difficulty. But now the foreign exchange rate has changed. So clearly you have a high quality, and producing here in Japan makes it the most competitive situation for you. To continue to produce here in Japan is the most competitive. What do you think of that, the competitive edge of the domestic production? Thank you, for your question. As to the competitive edge, before that, talking about competition, of course, the 3 million units of the domestic production level has been maintained for a long time. Because TMC, that even when we had, the loom, production company, of course, we were a company born in Japan. We've been a Japanese company, and, we were in the Japanese society and to the, the nation of Japan. How can we continue to make contribution to the people of Japan? That is our important mission. Several, about thirteen years ago, the great, earthquake occurred in, Tohoku, and then yen was so strong. There were six hardships we suffered, and then lots of plants, then moved to overseas. So after that, aftermath of that earthquake, we created the East Japan Toyota models, and then we wanted to contribute to the local community of Tohoku by automobile production. So we did something, reversed the trend, compared to other parties. But now, East Japan, in Tohoku, we believe that we have made contribution to the Tohoku region, and we still do. And we would like to maintain the policy, 3 million units to be continue to be produced here in Japan. In terms of numbers, of course, the drama is also relevant to here. But anyway, as you're aware that in Japan. The Japan, sir, the JPY 15 trillion income for Japan, thanks to this, export automobile. So energy costs is going up here in Japan as well due to inflation. But still, it's a kind of difficult situation, but two or three years ago, the JPY 15 trillion was spent to really procure the energy in Japan, imported. So in order for Japan to economically be feasible, I think you have to continue to earn foreign currency. So Toyota should really support that kind of system as a company, and the numbers should really prove that. So as Mr. Hirata mentioned that, what about the future? Well, we should never deviate from this policy. We'd like to keep this stronghold here in Japan and continue to make contribution to the local community and regional communities here in Japan. Thank you. Next question, please. This person in the second row from the front, please. Thank you. I am Katsumata from Chubu Keizai Shimbun. I have one question for you. As for April to September repricing efforts, over the past recent years, it seems it has had major impact. So would you be more concrete in telling us what you have done? And as Nagata-san mentioned earlier, rewarding your suppliers is something that you have done. Now, based on that, cost reduction efforts together with the suppliers is another area of interest that I would like you to elaborate on. Thank you. Thank you for your question. Improvement efforts at Gemba can take multiple forms, as you've seen in Miyazaki-san's slide. I listened directly to people in Gemba, and I'm feeling the advancement of digitalization. I'm referring to a specific slide here. In terms of machined parts, the visual inspection of the surface finds 1 out of 10,000 some defective parts. People in the Gemba have a very intense job because they should not overlook such defects. But then you introduce AI camera. It can really be effective. On the right, you see sealers being applied, sealers that you're applying to reduce water leaks. It really takes skills. And then there are seasoned craftsmen who are so good at it. So VR algorithms can read in what seasoned craftsmen would do, and newcomers can mimic what the seasoned craftsman would do, and that results in reduction in training hours. Such specific techniques can be handed down to the next generations. About three years ago, together with our labor union, we decided to catch up with others in implementing such digital technologies. Certainly, production area, our engineers and technicians are really eager to learn. All our employees, over the past couple of years, during the pandemic, we have seen such results. With very strong workload in Gemba, use of technologies as such certainly has proven quite effective. This is something Toyota does. This is something that we do together with our suppliers. Now, what was your second question? Would you repeat your question? No, it's okay. You have addressed my question. Well, in terms of our suppliers, I've given you several examples. We have direct touch with Tier One, Tier Two suppliers of ours, so we have direct touchpoints with them, and that probably is a physical limit of our reach. But then, if improvement efforts should cascade it down to further down in the pyramid, then JAMA and parts suppliers associations together should work together in implementing such improvement efforts. Nagata-san is working on that. Nagata-san, do you have anything to add? Thank you. This is also an activity of JAMA, as Miyazaki-san mentioned. JAMA's supply chain committee is the forum that we work together, especially in a deeper down in our supply chain. What they should do is something that JAMA can communicate very well. And parts suppliers association as well, in terms of the creative ideas of what can be implemented. And of course, sometimes we can visit the Gemba of those lower tier suppliers, and that's the effort made by the entire industry association, not only by Toyota. And our activities are aligned with those with JAMA, and I think that's extremely important right now. Now, in the future, as has been mentioned, electrification and transition to BEVs, how should we go about that? As you go down our supply chain, especially the smaller suppliers, they are at a loss what to do. And especially in the area of carbon neutrality, they are at a loss what to do. So not only our direct suppliers, but JAMA and parts suppliers associations networks should be leveraged so that we can work from both directions. Thank you very much for your question. Thank you very much for your many questions. Now, we would like to shift to the online participants to entertain their questions. Online participants, when you have a question, please, push the button to raise your hand, and we call out your name. And then, please turn on your microphone and camera before you speak. Online participant? No one has raised a question, so we'd like to return to the people, on the floor, the, in this hall, to entertain questions directly from them. The person on the third row from the porch. I'm Hayakawa from NHK. So for this financial results, you presented that operating income and then the profit, you have achieved a record high. And as, EVP Miyazaki mentioned, that he expressed his gratitude. However, how do you perceive over this six months the financial results? But of course, the raw materials and other prices are going up. So for the future, the outlook, you have upwardly revised the future outlook. However, what are some of the concerns and some of the factors you are considering carefully? Thank you very much for your question. Earlier, I have made some summary statement in my remarks, but the actual numbers we have seen, we are seeing, of course, each field and each position, people worked so hard to come to this good result in the last six months. And now, as to the full year outlook we have presented, of course, we have the resolve that we will continue to do this good work by working hard. However, the efforts are really observed in this marketing and sales. This number is so good. So what is the backdrop for this good marketing and sales? Well, we have introduced the company system to ever build an ever better car. The appealing the products lineup have been prepared and are ready. That is a major important basis. The second factor is that many changes are occurring. However, every day, in the daily operation, the accuracy is going up, and then we have to make a quick decision. But local specification has been tailor-made for each area, and then the fact in the field and frontline has been considered to make a quick decision, and those results have been reflected in this good result. More than ever, to build an ever better car, and in the local community, that the local, the gemba-based decision is made quickly. In other words, all these people involved in this, production and logistics and so on, these, the united efforts of these people were reflected in this good number. So anyway, it cannot be done overnight. It's been the result of all these accumulated hard work and daily improvements and the united efforts. All the results are reflected in this, good, result that we are announcing today. And so we are faced with a good situation now, and we'd like to continue this, good, practice from now on. We have just completed half of this full year, the business, and we can never feel so easy, because we still have lots of risks that we have to be prepared, as Hayakawa-san pointed out. The full year, the production is one, 10.5 million units, so we haven't changed the production outlook. From my standpoint, we might have a kind of a positive outlook. However, as you pointed out, there are lots of concerns. This market behavior is changing in China. The real estate situation is uncertain, impacting Southeast Asia and Thailand. In Vietnam and Thailand, the market itself is going through some changes. We can never feel too optimistic. We really have to be careful. But still, anyway, there are uncertainty in front of us, and that uncertainty is getting more serious. So we should really have the spread antenna to have a good communication with the local CEOs and others to supply these good cars, which will please the customer there, and then really adjust the cars according to the customer need, need situation. That's what we like to be prepared. Thank you very much. Next question, please. Yes, person in the front row, please. I am Kato from Mainichi Shimbun. I have two questions. Now, Miyazaki-san, you talked about the contribution to the future mobility industry, the future automotive industry, and yesterday you made an announcement about additional investment in the United States in production. So hydrogen, battery, carbon neutrality areas will become the focus of your future investment? And the second question is, earlier, you experienced some accident at your supplier's factory, which caused some halting of your production line. Has it had any impact in your production plans going forward? Thank you for your questions. Now, the investment for the future, of course, carbon neutrality is a major focus area, and going forward, battery EVs, as well as hydrogen, will become important areas as well, because they will lead to new business domains. There are multiple options for investments. During the technical workshops and Monozukuri manufacturing workshops, you have witnessed all those endeavors that we are making. Investment, certainly, is made into the areas where we have a basis of technologies and engineering and capabilities, and technical workshops have demonstrated that we do have such a foundation. In Monozukuri workshops, you have witnessed our engineering prowess, which would enable further investment in such areas. Now, the question, I'm sure, would be: What about ROI and profitability? How can we connect those different pieces of technologies and engineering prowess? And how to allocate our investment going forward is something that we will still have to determine going forward. Thank you very much. You asked about the accident at Chuo Spring Company. Now, actually, because of the data deficiencies, we have experienced halting of our assembly lines at the Chuo Spring Company, but they have resumed production, so bringing them up to speed, certainly, would be the current focus. As of now, we haven't changed our production plans, so before the end of the year, we will make some recoveries. So that's something that we do to respond to that particular accident. But what we have to do is, because frequent incidents like this or accidents like this would only inconvenience our customers, so how to manage aging manufacturing equipment and facilities is something that we really have to go through together with our suppliers. And we've already begun our endeavors so that going forward, we will not cause any inconvenience to the future customer of ours. We will continue steadily for the improvement. Thank you very much. We'd like to just entertain two more questions, because time is getting short. Please. Yamauchi of Yomiuri Shimbun. Thank you for this opportunity. In the USA, about American market, that's my question. Three months ago, when you announced the first quarter results, that there are some risk factors, and then you mentioned about risks, but what is outlook of the US market from now on? The second question is, the UAW strike has finally been settled, so what will be the impact and the rippling effect due to the... that strike in the USA? Because US automakers, their burden was, is going up, and some people say that it will be advantageous for the Japanese companies, but maybe investment costs will go up because of the overall impact. So what do you think of that settled labor union strike in the USA? The answer, the outlook for the U.S. market, let me respond to that part of the question. First, the economic numbers themselves, I think, might present and make us feel a bit cautious. But from actual operations in the U.S. market, that, Is not yet being felt directly in the market, because inventory level, stock level, might have been improved slight, slightly, but there's a shortage of products and the low inventory level, that's the US market situation. And the market, the demand is strong, so that's our, our analysis as of now. However, if we are looking at the other OEMs, maybe not, the, it's not the case for everyone. There are differentiation amongst different OEMs in the US. So what we actually feel, there's a strong market tendency right now. That is because of a good, powerful lineup and appeal of our products. And because of that, the good lineup products, we are in a, a good position now. As to the overall market condition, we still have to be cautious, and we need to monitor closely. As to the U.S. market itself, is in that kind of condition right now. But what about the global situation? The U.S. or the European markets are strong markets. On the other hand, as I said, China, the economic situation is getting a bit stagnant, and then the market is changing in some of the emerging countries as well. So when you look at the over global situation, we have a well-balanced portfolio around the world. So where we should do what kind of operation should be really scrutinized by us. As to your second question, Nagata will respond to your second question. Thank you, Mr. Yamauchi, for your question. After the UAW strike, of course, would that have any impact on Toyota or, and other companies other than Detroit, too? Well, we aren't so sure about the possible impact on us. However, we feel after the strike, that basically the U.S. operations, like TMNA, basically should have the dialogue with the employees, like Toyota's intra-company labor union, and we should have a good dialogue with the employees. Their hard work and company competitiveness should be discussed between the management and the labor union members. What about the pay raise? What is a good optimal level of pay raise in order to improve the productivity and competitive edge? So we have a good dialogue with employees. The local entity announced yesterday for the North American company, they have the regular pay raise, and then they announced the result of the settlement. As I said, the employees made a great contribution in comparison to the other companies of pay level. That's how we decided to revise and increase our pay level. So we'd like to enhance the competitive edge, and it should be a good cycle. In North America, the company should really upgrade itself toward the better future. We would like to create a good cycle toward the better future. As Miyazaki said, that he intends to make an investment in many new areas. That's what we'd like to do, and that's the belief of Toyota for the future. Thank you. Thank you very much. Now, let us entertain the last question for the day. I am Yamamoto Shinya, a freelance journalist. Now, your numbers, overwhelming. Well, Chairman Akio has sown the seeds for over the past fourteen years, and those numbers indicate the results of that. I'm sure the new management executive group will do something that is unique to them. What sort of seeds do you think they will sow? And also, what would be the weaknesses that Toyota has to continue watching for? Well, thank you for your questions. It's a very tough question, as a matter of fact. Sowing the seeds when it comes to this new executive group, as you've seen at the Tokyo Mobility Show, there are new areas that we are working on right now. When you sow seeds, you cannot expect it to burgeon immediately, and you don't know whether the seeds were sown by yourself or someone who were before you. But anyway, it's an all-out effort of the entire company. Under the new executive team, nurturing new ideas, we would like to explore new possible business domains. As we do so daily, several years later, we will look back at what we did and what we discussed, and find that we have done several years ago, has been a very good decision and have flourished. So what are the weaknesses of Toyota, as you asked? As I mentioned earlier, if we become complacent and lose focus in what we do, that will turn out to be a major weakness. So what is our cause? Why do we work each and every day, and why do we make strides forward? Those are the things that we would like to continue talking with our employees to make sure that we are aligned. We would like to raise the level of the entire automotive industry of this country, and we will do our very best in contributing to that end. For that purpose, I thank you in advance for your understanding and your cooperation. Thank you very much. So this concludes all the question and answer session. So we would like to ask these speakers to stand up. We again would like to thank you very much for your participation. Thank you. So the speakers will now step down from the stage. Thank you.