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| So in the short term and the long term, I believe that the financial results do indicate that we have been able to reinforce the corporate fiber through our years of efforts |
| So as you said, our base volume would be a record number of vehicle sales |
| We will strengthen our earnings base by focusing on hybrid electric vehicles to capture market growth |
| And so we want to improve our marketing power and market -- our product development power in an [indiscernible] manner |
| And I'm sure you realize that the impact of ForEx and also the soaring materials prices over actually improved through various efforts to generate operating profit -- a good operating profit in the end |
| So against this backdrop, how do we intend to finance this investment? But as I said earlier, up to now, we have been engaged in cost reduction efforts as well as marketing efforts and by reinforcing our relationship with customers, we have been increasing our earnings power, and we have shown an outlook of JPY3 trillion in earnings power this year |
| There are some appealing attractive software using product value add that can only be achieved with BEV and we believe it's possible to enhance the customers' experience value as a result of this |
| As Miyazaki-san just mentioned, despite the severe business environment, including soaring material prices, we were able to secure an operating profit of JPY2.7 trillion in the previous fiscal year |
| And by doing so, we believe that we can strengthen our financial base |
| Third, the effects of marketing activities will increase the operating income by JPY1,285 billion due to an increase in sales volume and an improvement in product mix, led by improved semiconductor supply and demand, while other expenses are expected to decrease by JPY260 billion |
| So when we look at the short-term financial results, we were able to obtain an operating income of JPY2.7 trillion, which I believe, in terms of our earning power, we were able to indicate earnings power that exceeds our part of last year |
| But also, on the other hand, there is solid demand for hybrid vehicles in China |
| And through these efforts, over 1 year, although things are not perfect, our ability in power to manage semiconductor supply has been greatly improved |
| So we want to continue with improvements at this space so that the customer, suppliers and the dealers, they can all enjoy delivering even better products to our customers |
| So as a delivery cycle so in longer, the dealers have a good communication with the customers, I believe |
| And as I was mentioned earlier, so we have set some vehicle sales forecast, which must be produced, and also, we will improve the appeal and attractiveness of our products to generate higher profitability |
| And by pursuing this goal, we believe that we should be able to achieve that goal of profitability |
| And capitalize upon our advantages so that we can transform mobility |
| So each supplier has their own strength |
| I believe that the growth Toyota should aim for going forward is growth that creates a future in which the automobile industry transforms itself into a mobility industry through enhancing its added value as it works in cooperation with many other industries |
| So we hope that we will be able to improve our communication regarding delivery dates with the customers |
| To actively promote these initiatives, we will also increase our immediate earning power especially in Asia and emerging markets, which are expected to grow 30% or more by 2030 |
| We will communicate that earlier than before, and we would like to create a business where we can capitalize on each other's strength gradually |
| So increase the basic strength and improve the appeal of the products |
| We have also established a foundation for steadily increasing growth investments |
| And so when you -- if you look at things from a span of 10 to 20 years, and not only domestically, but in the United States, for example, inclusive of incentive payment, we were able to increase the marketing point of our products |
| We will study those so that we can enhance our competitiveness in the market |
| In spite of our actual operating income decreasing compared to the last fiscal year due to the impact of such things as soaring material prices, our results exceeded the previous forecast due to our continuous efforts to improve our profit structure |
| Since March, we have been able to continue high level production while prioritizing safety and quality |
| As you mentioned, hybrid technology is one of our strengths |
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| Miyazaki said last year, sales volume went down and new energy vehicles are increasing and the Japanese makes are struggling in the Chinese market |
| For North America, producing cars and delivering cars is something that we were struggling with |
| Lastly, we also incurred a negative impact of JPY415.6 billion largely due to the swap valuation losses and the cost to terminate our production in Russia |
| So as Sato said, suddenly, there would be a shortage of components, and we had to lose the production volume against the plan |
| So manufacturing cars and delivering them to customers was a very difficult endeavor this year |
| In the short term, things were very difficult |
| The various auto OEMs are saying that BEV investment is becoming a burden on their profitability |
| So demand went down from time to time |
| North America decreased by JPY457.8 billion year-on-year due to soaring material prices |
| So if I try to give you a number, it could lead to some misconceptions |
| Second, cost reduction, of course, decreased operating income by JPY1,290 billion, the JPY1,545 billion impact of soaring material prices includes JPY500 billion for activities aimed at strengthening the structure of the entire supply chain in addition to fluctuations in market conditions for materials |
| So the people producing the vehicle and the TDEM members were all concerned and had anxiety about what was really happening |
| Looking back on the results of last year, we weren't able to secure sufficient semiconductors |
| But this is a challenge, yet a challenge |
| Nakajima mentioned, what we saw at the motor show was something that we were surprised with |
| While we experienced production constraints due to tight semiconductor supplies, natural disasters and COVID-19, et cetera, dealers and suppliers as well as production sites have all worked hard in order to deliver as many cars as possible to our customers |
| As a result, excluding the overall impact of foreign exchange rates, swap valuation gains and losses and other factors, operating income decreased by JPY1,135 billion year-on-year |
| So Lexus exported to China from Japan went down last year |
| As for our business in China, while the operating income of consolidated subsidiaries decreased year-on-year, mainly due to the impact of fluctuations in foreign exchange rates and a decrease in sales volume, our share of profit of investments accounted for using the equity method increased year-on-year, mainly due to cost reduction efforts |
| That alone will not be enough to create a vision of a sustainable industry for automobiles |
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