Thank you very much for viewing Honda Motor Company Limited’s live broadcast of Financial Results announcement for the Second Quarter of the Fiscal Year ending in 2021. My name is Watanabe [ph] from Corporate Communication, the moderator for this announcement. First of all, I'd like to introduce the attendance attending today, we have Mr.

Seiji Kuraishi, Executive Vice President, Representative Director..

Good to see you everyone..

And then we have Mr. Kohei Takeuchi, Senior Managing Director..

Good to see you everyone as well..

This financial results announcement with the COVID impact, we have no audience on site, and this is going to be an all-live broadcast. Thank you very much for your understanding and cooperation. So first of all, we like to have a Mr. Kuraishi, he’s a Vice President to explain the financial results for this term..

The COVID-19 was spread around the world since the end of the fiscal year ending in March 2020. It continues to rage around the globe even today, bringing serious damages to the economy. However, in the second quarter of this fiscal year ending in 2021, economic activities have been reopened in many markets with resulting gradual recovery in demand.

In some markets, the second wave of the pandemic has arrived, and the situation remains unpredictable. But Honda will continue to be thorough in its actions to prevent infection and proceed to supply products to the market in a timely manner.

Now, I'd like to present to you the outline of the financial results for the second quarter of the – and the full year forecast for the fiscal year ending in 2021.

Starting with the unit sales of Honda Group cumulative to second quarter of the fiscal year, it was 6,322,000 units for motorcycles, 2,045,000 units for automobiles, and 2,453,000 units for Life Creation business. Next, I'd like to explain the situation in each of the main markets.

First, to look at the Japan market, the total market is showing a moderate recovery from the impact of the COVID-19 since May. However, due to the last minute demand before the consumption tax hike in the previous year, the total demand was considerably lower than compared with the same period last year. Honda’s unit sales undercut last year's number.

Looking at the unit sales by model and wagon a new fit surpassed the sales in the same period last year, meaning a recovery in the second quarter. Inbox series set number one in new car sales for the first half of the fiscal year ending in 2021.

Our outlook for the total market demand for the fiscal year ending in 2021 remains unchanged from the previous forecast, and it is expected to be lower than previous year.

Due to the market slowdown, Honda expects to see lower sales compared to the previous year, but in view of the recent sales results, we have revised our forecast upward from the previous forecast. In the U.S.

market, the total market demand has been gradually recovering since May, due to the phased easing of regulations and economic activities and reopening of the feeder business. But demand was lower than the same period last year due to the decline in the fleet market. Honda unit sales were lower than the same period last year.

But we are seeing recovery at a better than market pace, mainly with CR-V and Civic and Civic maintain the lead in this segment with its high product features. Also, at the end of September, new TLX was launched as well.

Total market demand for the full year ending in 2021, beginning with the second half of September, COVID-19 cases have been increasing and again in number, mainly in the in the Midwest. So the outlook remains uncertain. The forecast is for lower demand compared to the previous year.

Honda expects to see lower year-on-year results in the face of this uncertainty of the market. Next looking at China. In addition to the resumption of economic activities, consumption stimulus measures were taken, so the total market exceeded the same period last year. Honda has favorable sales of models such as [indiscernible] Vezel, and XR-V.

And also in the second quarter, we launched three models, namely Civic hatchback Fit and MVIX [ph] hybrid, which actually bring -- brought us better than market growth. From July to September, single month sales results marked record high numbers in consecutively for those three month.

For calendar year 2020, the total market demand exceeded that of last year from April to September. But as the market took a huge decline due to COVID-19 in January to March, the impact of which could not be fully recovered. So the total market is expected to be lower than last year.

Honda, with the launch of new models and running factories at full capacity to increase supply to the market is aiming to exceed sales higher than previous year. We have revised our forecast upward from the previous forecast on the basis of the recent sales situation. Now training motorcycles.

The impact of COVID-19 differs significantly from one country -- to region to another. In China and in the U.S. due to the trend of using motorcycles instead of a public transport added to the heightening outdoor leisure demand, the market has almost fully recovered. On the other hand, in Asia, the largest market, in addition to the impact of COVID-19.

Due to the tightening of loan screening criteria Indonesia, the market contracted in Asia, Iran, Iraq. Honda, despite strong sales in China and U.S. and in India and Brazil, we started production in June and with the steady recovering sales, but still we saw sales fall below the same period last year.

The total market demand for the fiscal year ending in 2021. We expect that even though the recovering trend continues in many markets, Indonesia will still see continued decline in personal spending due to the tightening of loans. Therefore no prospect for rapid decline, that the market will be lower than the previous year.

Honda expects lower sales and Indonesia and some other markets, but higher sales in markets including India, Brazil and the U.S. So our forecast on a global basis is for sales equivalent to the previous forecast. Now moving on to the outline of the six month results for the fiscal year ending in 2021.

The first quarter brought us very, very challenging situation with the impacts of COVID-19, but with this environment of living with COVID, we have proceeded with solidifying our existing businesses further and at the same time, we have made a fundamental review of our business activities across all areas to secure a strong resilient business constitution that support future growth.

As a result, our better control of SG&A expenses and cost reduction are those for -- turnaround from the first quarter, bringing an operating profit of ¥169.2 billion for the six month. Profit for the period under review was due to the contribution from profit from investment based on equity method, we -- it was a ¥160.0 billion.

The unit sales and income statement are as shown on the slide -- shown here. Moving on to the forecast for the fiscal year ending in 2021.

For unit sales, we have increased our automobile forecast for -- from the previous forecast considering the favorable sales in China and other markets and also increased our Life Creation business forecast in view of the strong sales in North America.

For operating profit incorporating the business constitution reinforced in the first half, were estimated ¥420.2 billion, an upward revision of ¥220.0 million from the previous forecast.

Though the future of the market remains uncertain due to the COVID-19, but with our initiatives to curve SG&A expenses and to reduce cost further, Honda will aim to enhance its business characteristics further.

The profit before taxes, due to the increased investment profit share, due to the equipment -- equity method are expected to be ¥660.0 billion. Once again, the unit sales and income statement are shown. Next about the dividend.

Forecast for the full year, our dividend for the fiscal year ending in 2021 is due to the operating profit and the increased investment profit based on equity method compared to the previously published forecast dividend by per share is increased by ¥24 to ¥68 per share. And for the end of second quarter, it will be ¥19 per share.

Next, I'd like to hand over the microphone to Mr. Takeuchi, Senior Managing Director, Chief Financial Officer to present the details of the financial results and forecast..

Thank you. Now -- I Takeuchi, I am going to explain. Starting from the -- with FY 2021 second quarter financial results consolidated. Honda group unit sales of motorcycles increased in Pakistan, Philippines and Brazil, but decreased in Indonesia and India.

Unit sales of automobiles decreased in Japan and Indonesia and at the same time increase was recorded in China and the United States. Income statement. Sales Revenue.

There is an increase in sales revenue, and financial services business on one hand decreased however in automobile business and negative effects -- effects translation, so it resulted at ¥3,651.3 billion. Operating profit.

Although there was a decrease in profit attributable to decreased sales revenue and model mix, operating profit has stood at ¥282.9 billion due mainly to a decrease in SG&A and cost reduction effects.

Next to explain change in profit before income taxes, profit before taxes for the second quarter in FY 2021 owing from the to the reduction SG&A and other efforts to cut down on costs, was ¥345.7 billion, which is up by €56 billion year-on-year. Operating profit ¥282.9 billion, up by ¥628 billion. Performance by business segment.

Operating profit of motorcycle business was ¥68.4 billion and given decrease in cost down because some benefits in SG&A expenses but due to decreased sales revenue and model mix changes ¥168.4 billion. Change in the overall situation, however, was quite noticeable. Next, now turning to financial services, ¥93.2 billion.

Life Creation business and other shows fluctuation and internal exchanges, so the numbers that you see here. For others, please note that for aircraft and aircraft engine losses, now which are categorized in others and also in Life Creation business was ¥8.1 billion.

So summing up, the operating profit for automobiles and the automobiles, there was portion of the financial services was ¥214.6 billion. FY 2020 six months profit and losses are shown here. To explain profit before tax was down by ¥307.1 billion.

Operating profit because of the cost reduction and SG&A expenses, which was offset by sales revenue declined, was ¥169.2 billion, down by ¥303.3 million. Turning to second quarter, six-months total ¥57.9 billion. Cash and cash equivalents, at the end of the second quarter was ¥2,626.5 billion. Net Cash is stood at ¥1,843.9 billion.

Now to explain about FY 2021 consolidated forecast. For the Honda Group unit sales of Motorcycle the same as previously forecast at ¥14.8 million. Automobiles, upward revisions from China and Japan lead the further increased by 100,000 units at 4.6 million units. Life Creation business up by 190,000 units at 5.5 million units.

FY 2021 consolidated business focus, as you see here. Changes from the previous fiscal year actions due to the decline and the unit sales and also because auto sales mix change and FX negative impact. We had the positive benefits coming from the reduced SG&A and other costs. So, ¥420 billion operating profit is planned.

And now on vis-à-vis to previous forecast made for the four year increase in the unit cost and also the cost reductions such as for SG&A and others, ¥220 billion effort provision from the operating profit.

Finally, FY 2021 CapEx, depreciation and amortization and R&D expenditure as you see here and that completes my explanations to you, thank you very much..

Thank you and with that, we conclude the FY 2021 Q2 with our presentation. Now from this point onwards, we are going to receive questions from the members of the media. As we announced to you previously, we are going to receive questions through the Zoom system. We are going to resume at 15:40, 3:40 PM Japan time. Thank you. [Break].

Now, we are going to move on to questions and answers. As we announced to you, prior to this, the meeting, we are going to receive questions through the zoom session.

If you have a question, please use the hand icon on the screen and in the interest of time and they may suggest to him that they will be or limit your questions into two questions per person. If you have a question, please use the hand icon. Okay, then we like to take questions from Reporter Hanada from Nikkei newspaper. So Mr.

Hanada, could you turn on your microphone to ask the question please. Mr. Hanada? Okay. Sorry, but because he is not responding, so we'd like to proceed to the next reporter. Okay. Then we like to take the next question from Yomiuri Newspaper, Reporter Shimo Zato [ph], please..

Q – Unidentified Analyst:.

Shimo Zato:.

Yes, I can, we can hear you..

Refer to pages 13 and 16 in the material. For the second quarter sales, among the factors that contributed to the sales. They impact from the COVID-19.

How much of an impact was there from COVID-19? And also if you are looking at the first half of the fiscal year, you have a negative of ¥488.2 billion? How much of that is due to COVID-19 would you say?.

Thank you very much for the question. To answer the first question. This was for the first quarter, I believe the factors that contribute to the fluctuations in sales. How much of an impact – sorry, for the second quarter.

How much of a COVID – impact from COVID-19? And the second question was for the first half of the year, fiscal year, this ¥488 billion of that total decline how much of impact from COVID-19? Okay. Then let me answer that one. Well, looking at the page 13, this is a – I think you're referring to the year-on-year results comparison.

If you've got the volume mix, it's about ¥40 billion minus. So this is coming from our motorcycle for the year-on-year comparison of this consolidated number. This was a 76,000 decline in automobile and then 240,000 decline in motorcycles.

But if you ask me, if that's all coming from COVID-19 that's difficult to say, so most I believe is due to the COVID-19, however, but if you ask me is this all the reduction in unit sales are they coming from COVID? But if you look at the total, this is an – and all this total this is coming from ¥40 billion yen declined due to this.

And if you look at the six month results, they year-on-year comparison with the last year, it's about the ¥500 billion decline, if you look at the motorcycles, this 2.3 million units and the 640,000 units decline in automobiles. So those declines are included in here. As I explained, the results are the same.

So of course, there was no COVID last business I fiscal year, so was it all due to COVID-19? Of course, the factors are mixed in.

Does that answer your question?.

Thank you very much. So let's move on to the next question from Nikkei Newspaper. Mr. Hanada, the floor is now yours..

Thank you very much. And sorry, before not being able to ask properly a few moments ago, please reach, it seems that there's signal interference. Changes in the business environment is my broad question.

Well, sort of the automobile businesses can change had expected then [indiscernible] the gasoline and the running the automobile isn't there in terms of 15 at a target, that you get from the carbon orientation activities in Japan? So what do you think of those expectations at Honda? And also how in the U.S.

Presidential Election, how the environmental regulation the prediction may change and that's how going forward as a result of Presidential Election in the States?.

Thank you very much. So these are two questions, number one in European and United States has a permission to sell [indiscernible] the running automobiles and Japan has announcement to the [indiscernible] from the carbon oriented and the business activities in terms of 15. And the second big question has to do with the outcome of the U.S.

presidential election, how considers that may impact in the future, the governmental regulation or professionalism? Thank you.

Well, of late, on top of that the Prime Minister [indiscernible] and U.S., UK, or Europe for order barouche the convention of having gasoline – the operated from vehicles are likely to be shifted to the new title for the fuel. The interest is becoming higher and higher towards the electrification of automobiles as among others.

At present, Honda’s view is that the reference made to the SUV therefore electrification that sort of move therefore the engine technology. And so that our aim is to electrify two-thirds of our global automobile units sale into 2030.

Therefore Honda in all regions different regulations, the order penetration or those mandates and there will be what not. Not to mention the appetite and changes may open that our customers in regions, therefore for each and every region whatever wouldn't be characteristic to Honda, that is going to be our point of emphasis.

That means the [indiscernible] GM in the state that we’ll see the agreement in China. So these are the exemplary arrangements. And of course, with regard that the inclusive of the air purification or the promotion of the SUV vehicles we overlay to the detecting considered. Our President Mr.

Hachigo that we are going to meet him therefore the realization of carbon neutrality by 2050.

So that means that we have to accelerate further our move towards different electrification and of course, this was sophisticated the energy unit, power units and all the other elements that we need that to be enabled will be the areas that we are going to prioritize our resource orientation to become carbon neutral everything will have to change.

These are the things that we need to do will be not only the Honda alone, but also together with other members of the community. Therefore energy related research activities, and we're engaged in product activity at Honda, so that in order to realize our goal of being carbon neutral, we often like to lead the community approach.

And as to the outcome of the Presidential election in the United States, we’re up to official result, which is not announced yet. The sooner the better to hear the official announcement to hear the outcome of the Presidential election.

And then of course, the friendly relationship – of the relations between the two countries need to be preserved and strengthened so that we can continue to provide our vehicles into the states.

So at the same time, we also here to protection nation may be tightened but I really do hope that is not going to hinder our business activities going forward. Thank you very much. Mr. Haneda [ph] you had a second question. Is that correct? If so, please go ahead. Mr. Haneda with your second question..

That's right. I mean, the profitability of automobile business in the reform of the automobile Honda business. What is your progress to date, you are working together with the MGM and also in the resulting reductions [indiscernible] results in the life creation business..

Okay, so GM relationship, and how do we stand, and how – and we have been able to produce the outcome of that. The profitability of automotive business has been mostly in our mind. Now progress on our Western General Motors.

As it’s been announced already, that's basically what I am able to say on the debt, because we are in discussion with GM from various angles. There's nothing further that I can explain to you right now, right here.

In any case and so that we can accelerate the electrification of the automobiles and it is my belief that this relationship with GM is quite conducive or thereby joining hands with the GM.

What we have been doing over the years which is to make investments in the area of the [Indiscernible] running automobiles, what further utilization of those technologies and that we would like to consider further? And I believe that we will be able to do so.

I'm particularly know that we are working closely with GM and the decoder that we have established there to reduce emissions. And that's something that we have holdings and because we are together with GM in these activities, we should be able to do more..

Now we have Mr. Inagaki [ph] from Asahi Newspapers [ph]..

This is Inagaki from our Asahi newspaper. I hope you can hear us. I have two questions. You said there is a recovery from China and U.S., but for the full year, how are you viewing this? And also, there was some restriction on the economic activities and productions stopped.

So how do you view that and therefore the total market and also your company's results? That's my first question..

Thank you, very much. I believe that your questions, how do you view the recovery in total market demand in the States on the Chinese market for the second quarter and also you want to hear the analysis of the total market and Honda’s results, if this is a reaction after the first quarter.

The first quarter was a very challenging situation for all of us. And then, we are seeing a recovery in second quarter. And then, of course, they could be -- there is uncertainty about the second wave of our COVID-19 in the second half, but we believe that we will have our 4.6 million units planned higher than the previous one.

So the unit sales is growing for a focusing on China, and then we will have only 4% decline in unit sales a year on year. So look at China first, well, this is where it all started. So it was -- the impact was huge.

However, in the second quarter, now the sales, full sales environment has recovered and also CRM, MMC, CRV, MMC, 5th FMC, so the product lineup has been strengthened, and their marketing activities have been reinforced.

So we are seeing a good visit to the dealers and also we're seeing good sales and that's why it led to a good overall sales results for the calendar year because of those new models, new vehicle launches, we will see -- we hope to see your on year or better sales results compared with China.

For North America, if you look at North America, actually with the easing of the economy, the second quarter is seeing a recovering trend. And then for the future, unless there is -- assuming that there will be no major changes coming, our forecast is that we will get about 80% compared to last year, so 14 million so.

And then for the second half of September, we are seeing a new cases of COVID, so we still cannot really predict the future going forward. However, we will closely be monitoring the situation and take speedy actions together with the dealers. In Honda, the sales is recovering. In September, we've taken some initiatives on incentives.

So we saw good better results year-on-year, month-on-month. But for the second quarter -- third quarter, we hope to aim for the second half of the year, we hope to see better results compared to last year. Thank you [Foreign Language]. Okay, so if you have a second question, Mr. Inagaki [ph]. Sorry, additional question..

The recovery in the state, this is because the people who are unable to make purchases because of the activities are restricted, and then those are demand coming back -- came back. That was the additional question.

And then if we look at the page 13, if you look at to page 13, the cost reduction effect you say, and then SG&A control, I believe in a good effects, but I'd like to hear more details about it.

If you did something like reduced like business trips or something like that, I'd like to hear their actual details about what you did?.

Talking about the second quarter, the first one is, as you say, the production because of the lockdown, our production was suspended. And so overall, the inventory level was just simply short, and where we saw shortage in inventory. And then now in the second quarter, we started seeing sales growth. That is one of the factors.

However, at the same time, on the other hand, we made some efforts, initiatives in our sales activities. And then mentioning, so we've done some incentives, they have like a $4,000 over $4,000 incentive, but we provided about $1,800 incentive. So it has been lower. So the selling expenses has been reduced.

And then that's because we were getting short on inventory. So we didn't have to spend that much on incentives. That's one thing. So I think I can hand over to Mr. Takeuchi for cutting costs..

For year-on-year compound to three months from -- we heard about the ¥3 billion cost reduction additional. So this is goes back to precious metal and other raw materials, it's actually going up. This is like ¥10.6 billion, over ¥10.0 billion. And so this is comparing our three months and three months.

So, this is we're seeing the cumulative results from the cost reduction. And then the selling price differences, so we have about ¥50 billion plus due to the selling price adjustment and incentive. And SG&A, of course, business trips are cut down.

One big factor is within the SG&A, in North America, we have a major finance operation to sell automobiles, to make it easy for customers to buy automobiles. So, we have credit losses. Depending on the defaulting, we have to book provisions for allowance for the credit defaulting, but that's gotten better. So, this is ¥17 billion.

So that way we have been able to reduce -- cut expenses. So, this led to a total of ¥52 billion better results actually improvement..

Okay, thank you very much..

So, moving on to the next person from NHK, Mr. [Indiscernible], please..

Yes, [Indiscernible] from NHK.

Is it audible?.

Yes, we can hear..

Thank you. Listening to all the discussions and your presentations, once again, let me ask the following. Second quarter recovery, is that in line with your recovery, like in China and United States and do you also have net recovery of sellers, was that the part of your original expectation? And also before you focus on the upward revision? Fine.

But in the United States and Europe, the number of possible cases is on rise once again.

I think you used the expression of the being uncertain, opaque or whatnot, so what's the strategy that would you deploy after all?.

Thank you. So, the first question has to do with the second quarter recovery, whether or not it was part of our expectation or exceeding our expectations. So please, let us respond to that first.

Okay, so the first quarter and whether or not we were able to have the clear expectation or not, well, frankly, speaking, what we -- the actuals exceeded our expectation, China, that was the end of the first quarter during this period, it was getting better, but the India, United States, and we really could not see through the situation at all.

So, in that respect, I would say that what actually happened in the second quarter for our actual results exceeded our expectation. Now, under the most recent rise in the number of the positive patients of coronavirus, there is so much that is starting to affect our business operations negatively.

Not so, I'd say, however, it is -- some of the dealer there are -- though temporarily shutting down their doors. So, on a temporary -- and the closure of dealer activities. This sort of means that that we're against that performance and going forward. And so we have to see what happens.

We also would like to respond to your second question so, that is -- [Indiscernible].

Can you hear me okay?.

Yes..

Thank you. As announced already the production results for September using our higher results compared to the last year.

Now that your production is coming back and the demand is it -- is demand recovering and then the inventory situation in North America, I still have a shortage in inventory or do we have enough in inventory? So, these are things I'd like to ask..

Okay, thank you. Okay, for the September production results. So, is -- are you saying production ready? And then is the demand coming back? And then the second question was a situation -- inventory situation in North America Thank you..

Okay. If you look at the September, most recently for North America, we are back to -- 90% back to usual. On the other hand, there is some -- depending on the model, the inventory level is short on some models. So we are making some additional version as well. The inventory is like 52 days worth of inventory.

And so currently, we are at the standard inventory level to which we are finally coming back to. But depending on the level sorry, the model, it varies, but we are almost back to a standard inventory level..

Okay. Thank you..

Okay. From Automotive News Mr. [Indiscernible].

Are you there?.

Yes, I am. [Indiscernible] from Automotive News. I hope you can hear me..

Yes, we can..

Listening to you, Mr.

Kuraishi, you talked about relationship with GM saying that there's nothing further than you can explain to us today, but what sort of expected synergy for cost reductions for further per annum by how much further or the cost benefits they can be diverted into investments say other areas? What sort of on the synergy would you expect there altogether? And also North American the market is very important for you and there and there was an alliance with someone like GM.

Your power controls on the authority, I wonder whether you would end up the [Indiscernible] income that your authority or the power handed to the GM? Is that ever a concern that you have in the North American market?.

Okay. Again, thank you very much, we received a question relating on the relationship with GM, what will be the expectable synergy in the areas of cost reductions, and how those -- that could be used in other areas.

And also you have the alliance agreement with GM in the North American market, is there any possible concern that the less power of influence or whatever that you may have?.

Okay. As to the cost reduction benefits expectable. What I said was that, we signed on to the memorandum. And then what we are doing right now on that is that we're engaged in discussions as to the contents of the substance within that MOU memorandum. So I really cannot say anything more definitive.

However, it is for sure that [Indiscernible] certainly because that there isn't going to be the understandable acceptable benefits to accrued. But that said, I cannot quote any number per se. By the way any concern about the [Indiscernible] controlled influence or what not.

This is a business relationship with not capital injection, it is not in the capital participation, rather than it is really at the basis of the -- on the basis of the operations. So we know that what we're not interested in engagement in the North America and America, North American market, we will not do after all.

So in that context, I would say that the because we are working more and more in direction of electrification of course, there was the GM maintain that is hybrid and that the category of vehicles that we have -- the meeting of minds, these are really correction that we can come out so good when the beneficiaries from this relationship.

Certainly we have any concern whatsoever that we have to concede on the power of control. Thank you..

Okay, going into the next question. Next reporter, [indiscernible] from JD Automotive News. Sorry from Nikon Automotive Newspaper. Yes, we can hear you. Thank you..

I have a two questions. The first question is concerning the domestic market. Earlier, you talked about the -- for Europe and the U.S. you said the growth was better than your estimation. But I believe you have up your estimate by 10,000 units.

So for the second quarter was the domestic market better than expected? And then may I continue on to my second question?.

Yes..

So for the R&D costs. So you said you reduced the full year estimate by ¥40 billion or so for R&D costs, would that have an impact on product development, that we may, I believe Mr. Hajikko [ph] mentioned, are possibly launching level 3 with by the end of the year. So if there's any impact, please let me know? Thank you..

Thank you very much for the question. The first question was for Japan domestic market. So total demand and also Honda's situation. That was the first question. And the second question is about the R&D costs. So for the full year, we reduced it by ¥40 billion. So would there be any impact from that? Thank you. Okay, speaking about the Japanese market.

Well, for -- we are seeing our recovery for -- from July to September, and then the most recent minivan sales is recovering. So compared to the 630,000 units, now we are upset by 10,000 units to 640,000 units. So of course, the market going forward is still uncertain. However, we would like to keep a close watch on this.

And then, for R&D, costs, so because of the COVID situation there is a bit of a delay in development of new models. But on the full line, a full year plan, we are still on plan to sell ¥40 billion reduction is triggered by the COVID-19. We have been doing the review of our operations across including on R&D as well.

And then some of that timing of development might have been a little bit delayed. So this spans across our automobile, motorcycles and power equipment. So we are for any future plans, future activities for the seizing for the future, we will still be continuing for the investment for future technology..

Okay. I am sorry, but I have to say that the next question is going to be the final question from the [indiscernible] Mrs. [indiscernible] Thank you very much..

And this is [indiscernible].

Can you hear me?.

Yes..

About U.S. Presidential Election just an added question, you said that, it is premature to say anything about the future in the U.S. The official results are not out yet. However, the past four years and under President of the Donald J. Trump. How would you summarize in that four year period? And there was a tax cut.

This is for companies who have been really focusing on the U.S.

market? There must have been benefits that you enjoyed this? So what is your review of the past four years under President Trump in the United States?.

Okay. The review of the past four years under President Donald Trump, I don't think it is totally appropriate that we are in a position to answer that, the questioned in the name of one private sector company and so, I have to refrain from saying anything. Thank you very much..

So ladies and gentlemen, because of the time availability, we were not able to probably have not take all the questions that you may have unless otherwise. And so if you have anything further, please address under our Corporate Communications and we will get back to you later on.

And with that, we'd like to conclude our press conference for the financial results, and the presentation materials this you will get that we were uploaded on our web page. Thank you very much for your attention and participation and you may now close..