Jul 21, 2020
Operator
Good day everyone, and welcome to today's Nidec Conference Call hosted by Mitsubishi UFJ Morgan Stanley Securities. Today's call is being recorded.
At this time, I'd like to pass this conference to Mr. Orikasa at Mitsubishi UFJ Morgan Stanley Securities for the opening remarks.
Mr. Orikasa, please go ahead, sir.
Yoichi Orikasa
Dear, everybody, thank you very much for joining this conference call. And our sincere apology for 10 minutes delay due to technical difficulties on our side.
My name is Yoichi Orikasa, General Manager of Kyoto Branch at Mitsubishi UFJ Morgan Stanley Securities. Before the meeting starts, please make sure all the materials have been distributed.
If not, please download the files on Nidec's homepage at this moment. Now, may I introduce Mr.
Akira Sato, First Senior Vice President and the Chief Performance Officer, who will be speaking to you shortly. First, Mr.
Sato will make a presentation. After his presentation, we will move onto a Q&A session.
Mr. Sato now discuss his -- the company's Q1 fiscal year 2020 results outlook as well as management strategy.
Mr. Sato, please go ahead.
Akira Sato
Thank you very much, Mr. Orikasa.
Good day, ladies and gentlemen, and welcome to today's conference call. My name is Akira Sato, Chief Performance Officer of Nidec, and I'll be your main speaker for today.
Joining me is Masahiro Nagayasu, General Manager of Nidec IR team. For the forward-looking statements, please see slide number two of our presentation material for details.
Now, I will give you the key figures. Please see the slide number three for our first quarter's results.
As highlighted on slide number four, our net sales stood at ¥336.9 billion, 7% down year-on-year. However, despite reduced profit due to the lower sales, the operating profit increased to ¥28.1 billion, 2% up year-on-year, mainly contributions from improvements on cost structure through WPR4 program.
The profit attributable to owners of the parent increased by 6.2 fold year-on-year to ¥20.3 billion as fiscal year 2019 first quarter saw losses mainly on the transfer of Secop's, which is compressor business for refrigeration. On slide number five and six, you have steps charts showing the net sales and operating profit year-on-year and quarter-on-quarter, respectively by product groups with exchange rate effect, eliminations and structural reform expenses.
As you see on slide number six, the net sales went down quarter-on-quarter to negative exchange rate fluctuations reduced sales of auto and appliance, commercial and industrial or ACI. However, the operating profit has improved significantly as all of the segments except auto have improved quarter-on-quarter.
Please turn to slide number nine, which is showing changes in our regional productions on a month-end basis where the pre-pandemic average utilization ratio is assumed to be 100%. As of the end of April when our previous results were announced China and Japan were already almost [indiscernible], however, as of the end of June other regions like Europe, Americas and rest of Asia also make a significant recovery.
Please see slide number 10. While the net sales of first quarter were just about to form the bubble due to COVID-19, the operating profit ratio is on its way to steady recovery success rate.
The net sales is expected to bounce back in the second quarter and operating profit ratio has already shown recovery as to exceed not only that of previous fourth quarter, but also the third quarter last fiscal year, fiscal year 2019. Slide number 11 is illustrating our automotive business as the successful example of WPR4.
The graph on the left hand side makes our year-on-year comparison all of the sales and operating profit of existing businesses, excluding drops from traction motor related business and Nidec Mobility. Also the graph on the right hand side compared drops of Nidec Mobility on a quarter-on-quarter basis.
You will notice clearly that in both cases, we have established structure where half sales can still create positive operating profit. Please see slide number 12.
The sales volume of electric vehicle or EVs that have adopted our E-Axle exceeded 58,000 units on a cumulative basis as of end of June, which consists of six models as you see in the table on the right hand side. Please see slide number 13, as a decent example, Chinese automaker, Geely, launched their new EV called Geometry C in June.
Nidec's E-Axle Ni150Ex installed in Geometry C is a model that has evolved from the E-Axle that started mass production in April 2019. It contributed -- contribute greatly to improving the power performance, electricity cost performance, sound and vibration performance and reducing vehicle weight of Geometry C by applying Nidec’s unique technologies such as circuit designs, light, thin, short and small motor structure utilizing the permanent magnet and unique motor oil cooling structure, and adoption of the second generation inverter.
Also as you see on slide number 14, GAC, New Energy Automobile, or GAC NE, is a brand of Chinese automaker GAC Group launched the new EV called Aion V in June, which has also adopted our E-Axle Ni150Ex. The first two models that the GAC NE has already launched are also equipped with our same our E-Axel and especially the first model called Aion S has always been ranked as among the top three best-selling EVs in the Chinese domestic market.
Please see slide number 15. The net sales of ACI in the first quarter went down mainly due to impact from COVID-19.
However, it is showing a sign of recovery. The net sales was down 14% quarter-on-quarter, while the operating profit ratio improved by 2.5 points quarter-on-quarter.
ACI is currently undergoing a comprehensive review of its cost structure and is on its way to improve operating profit ratio by optimizing outsourcing costs, labor costs and fixed costs. Please slide number 16.
This is the same slide as the one we used in April. But just to make sure these are Nidec solutions for the common programs of humankind, which have been exposed by COVID-19.
They are 5G and thermal solutions, decarbonization, manpower saving, digital data explosion and power saving. We will capture these new five big waves as our growth drivers for now and going forward.
Please see slide number 17. The shipment of Ultra thin and ultra small fan motor, UltraFloFDB or UFF, which is used mainly for PC application marked a record high level in the first quarter.
UFF family supports the demand for teleworking, which started as one of the new five big waves in the wake of COVID-19. Please see slide number 18.
Our product line up continue to expand into Robotics as manpower saving, which is one of the new five big wave is becoming even more important in the wake of COVID-19. As you see on this side, we are leading to cope with manpower saving needs through such products as modules, motors, Reducer series, Automated guided vehicle and so on in the field of service and communication robots, commercial and industrial robots, and logistics and agricultural.
Please see slide number 19. In light of spreading of COVID-19, Nidec has made a declaration of health-oriented management in order to enhance employees' health, motivate and encourage employees and aiming to enhance our corporate value further through productivity reform.
As concrete measures; firstly, Health Promotion Committee has been established to facilitate liaising with the management, the corporate health insurance association, industrial doctors and employees. Secondly, in order to reduce the risk of COVID-19 infection, phased reduction of smoking hours is under way and total smoking ban on Nidec’s premises is expected by the end of fiscal year 2021.
Thirdly, further improvements and measures for health promotion will be implemented through analyses of our employees’ health conditions and issues. Lastly, on the behalf of the entire management team, I'd like to thank our customers, partners, suppliers for their support and the commitment as well as our shareholders.
At this time, we would like to open up the call for your questions. Thank you very much for your attention.
Yoichi Orikasa
Thank you very much, Mr. Sato.
Now, we would like to turn through the Q&A session. Mr.
Sato, please do take questions from the participants.
Operator
Thank you. [Operator Instructions] Our first question today comes from Mr.
Aaron Rakers, Wells Fargo. Please go ahead with your question.
Aaron Rakers
Yeah, thanks. Thanks for taking the question.
Just on the Small Precision Motor business, I'm curious as we see you guys referenced the impact of the pandemic and some shutdowns, and I think Philippines and Malaysia with shipments down 19% year-over-year, I'm just curious, can you help us frame, how much of an impact those shutdowns have had on your hard disk drive business? And what your kind of outlook expectations are over the next couple of quarters as far as HDD is particularly in near line?
Thank you.
Akira Sato
Okay. Thank you, Aaron.
First of all, we just going to be talking about our June quarter results, number one. And then as we said that we had a policy that we are not going to talk about our future numbers, but maybe just a direction.
So, we shipped the speed motor for hard disk drive in March quarter ¥55.7 million and is really came down in the number in this June quarter ¥50.4 million. So, ¥55.7 million down to ¥50.4 million, all the volume is down.
And as you suggested, there is some supply chain disruptions among our ATG customers. So, this is a major reason that the volume is coming down.
But we do see some recovery in this September quarter and onward, because we believe this 50 million number in the June quarter shipment will be somewhat the bottom or -- maybe this year that how we are looking at the current situation. Is that fine?
Aaron?
Operator
Thank you for the question Mr. Aaron.
So the next question will be go to James Pulsford from Alma Capital. Please go ahead.
Hello.
Akira Sato
James?
Operator
Mr. James, please go ahead with your question.
Mr. James Pulsford, please go ahead with your question.
James Pulsford
Hello. Can you hear me?
Operator
Yeah.
James Pulsford
Can you hear me?
Operator
Yes. Mr.
James, please go ahead with your question.
James Pulsford
Yes. Can you hear what I'm saying?
Operator
Yes. Yes, I can hear you.
James Pulsford
Okay. Good.
Sorry, I apologize I keep saying the same thing. Okay.
My question is on traction motors and you've given a lot of very detailed information what's happened in practical terms in the last quarter. Was -- have there been any developments you'd like to comment on in terms of new orders?
You may have won new customers. You may have one some development that have implications for the longer term growth of that business.
Have there been any changes you could comment on that have happened over the last quarter, please?
Akira Sato
Okay. Number one, as we explained in the previous announcement, there are two business, the auto and traction motor business.
The total all the motor or system, a unit, which we do have a so called the order bag was something like 16 million last time. And this time we say a -- almost same number 16 million.
But if you look inside, the very E-Axle business again and the traction motor business, E-Axle business, ferry the warning the total order backlog volume is increased by 0.5 million. But unfortunately the traction motor business is done by almost a similar number 1.7 million.
So roughly we say the total volume is the same as we announced three months ago, that’s number one. But on the air bag hand, we say that the E-Axle business, there was seven customer at the end of April.
Today at the end of July, we say 15 customer, so the customer number increased by eight, that eight will compose of seven Chinese and one Japanese. Okay.
Then the traction motor customer, there are six customers at the time. Today, we do have seven customers.
So we have new 1 customer, which is Japanese. So those are the main points that we mentioned for our current traction motor business status.
Is that fine James?
James Pulsford
That's great. Thank you.
And the decline in traction motor, these are future, this is all the backlog, so less influenced by what's happened in the short term. Why has the number of -- why, is it the number of traction motor orders have fallen over the period?
Masahiro Nagayasu
Okay. Always we said that contract, we contracted a total amount of the -- a motor, which we have to deliver over the life; two, three years, four years, and sometimes five years.
Then also we contracted a peak void. Then our customer can choose when those motors to be delivered.
So as you see, most of the current customers are concentrated in 2025, if they’re going to be postponed one year then that's going to be out because we are just limiting our total order backlog from 2019 to 2025. Is that fine?
James Pulsford
That's very clear. Thank you very much, indeed.
Thank you.
Masahiro Nagayasu
Okay. The next question please.
Operator
Thank you. The next question will be Mr.
Brad Snyder from Egerton Capital. Please go ahead please.
Brad Snyder
Hi. Hello.
Thank you. Just maybe I had a couple of questions, but first, just if I could follow up the first two questions.
On the hard disk drive, could you tell us what were the EBIT margin for hard disk drive in the June quarter, please and any trends on pricing?
Akira Sato
Okay. We are not using EBIT.
We are using OP margin -- operating profit margin. That's something that – roughly around 30%.
Brad Snyder
Okay. I think, I remember last quarter you had said you had some pricing gains in there.
Is that still the case or do you expect that going forward?
Akira Sato
Well, what did you say, the last time we said the -- this business?
Brad Snyder
Yeah. I think
Akira Sato
You mean COVID-19…
Brad Snyder
Some price increases on the…
Akira Sato
We will not use the word operating, we are trying to correct be a profit structure of our business not the word that we use.
Brad Snyder
Gotcha. Okay.
That makes a lot of sense. I think, and then I think on the traction motors, I guess my understanding is you've had -- no change to the volume of orders, but maybe some of them were pushed beyond 2025.
I just want to make sure, I understood that correctly? And then I think you said you've added, you went from 7 E-Axle customers and you now have 15 customers.
I guess I would have expected the order book to go up quite a lot for E-Axle is it the theme sort of situation there as in the traction motor where you maybe there's been some postpones?
Akira Sato
Yeah. As I said, a E-Axle business as the customer number increased from 7 to 15, then we say the total lifetime volume or so-call the order backlog up to 2025 increase by 0.5 million, that's what we say.
Brad Snyder
Right.
Akira Sato
Always there is a pushback or some account for -- we usually have this moment, the pushback right, is happening in the -- a Chinese EV market. This is many because the order or the demand is very difficult to read.
Especially the EV is really used by a so call a car sharing service like Uber or DiDi or whatever. And that volume is going to change because of the COVID-19.
So those are the reasons that we understand the EV recovery in China is very mature than the AIC cars. Okay.
Brad Snyder
Okay. Okay.
Yeah. All right.
Great. Thank you.
And I see the cost cuts have been going very well. I was just hoping, could you go into maybe some more detail or kind of separate how much of that is coming from kind of more permanent cost structure changes then with the sale volume being down, how much is variable costs that you might expect to return when sales go up?
Akira Sato
Through the WPR program, we just reduced the -- around ¥10 billion of cost in June quarter. And mainly is coming for the procurement cost reduction which is 60% of the ¥10 billion.
And other -- probably 10% H1 base labor cost reduction and the remaining portion is to reduce the fixed cost. That's a kind of a structure of the cost saving.
Brad Snyder
Okay, great. Thank you.
And I guess I was a bit biased, I guess -- the R&D expense was a lot lower than I would have thought. Is this -- is that a timing difference or are you happy with the R&D expense thing at that level going forward for the next few quarters or?
Akira Sato
Yeah, probably two reasons; one is -- time of difference as you mentioned. And the second one is a final kind of change of a business because we have got kind of big order for -- or special orders.
In this case, our customer would pay the -- our all on the cost upfront or in this case, we can reduce the R&D cost in kind of -- fast -- or kind of fast phase of the -- kind of a development effect. That's why June quarter R&D cost has been reduced to some extent.
That's kind of good, good money for us because we are spending a lot of money for R&D. So, yeah, that's right.
That's true. Two reasons behind and it is R&D cost.
Brad Snyder
Okay. Was -- and I -- so you said there was more for the traction motor, I guess if you had -- I was thinking maybe if you had 8 new E-Axle customers is that an area where you need to spend R&D going forward as they get further along in the design process?
Or is it mainly for the traction motor?
Masahiro Nagayasu
So, it depends. Okay.
As I say these customers, maybe the product launch will be something like 2024, 2025. Then we want to really stop the R&D process and how much we're going to spend for those particular customer nearly depending on the timing.
Okay. That's number one.
Number two, we try to -- maybe we are trying to standardize our product range as you understand. So, we would try to use as much as possible the product that we already showing to the current customer.
For the new customer, it might be much cheaper because they can save a lot of R&D cost. So, thereby the total R&D cost which is going to be required for those new customer clearly depending on the timing and also what kind of a system they want, they want -- clearly the new system or something like a standard one.
That's going to depending on the total R&D costs in the future. Okay?
Brad Snyder
Right. Great.
Thank you very much. Maybe just one last topic for me.
I just -- I wanted to ask about the CapEx, because I think you said about for the fiscal year ¥140 billion roughly on the CapEx. So, if I just looked at Q1, it seems a bit light on a run rate for that.
So, is that just a timing difference or do you have an updated CapEx target or and if so, why would it be lower?
Masahiro Nagayasu
metal 31
55:
Brad Snyder
Yeah. And I guess maybe just since you have such a large order book, if the machinery prices are very attractive right now, is it -- I guess, is there a reason why you wouldn't buy more than you need today?
If you -- now you might need it --?
Masahiro Nagayasu
Okay. Just to try to clarify R&D, right?
So, we say those new orders, so most of the R&D cost is a so-called the certification or qualification fee. In order to be qualified for the new car, we have to spend a lot of so-called the automated testing and others that we are cracking all the data, right, then for the first one, which we mentioned that last year we started already 2019 about that process.
Then above that we use a lot of so-called outsourcing service to do that. So, the cost was so huge.
Then we decided to do it in-house. So in order to do in-house we have to buy the machine, they're using the machine that we are doing the testing, thereby, as Mr.
Sato mentioned, the cost of the machine is very important, but overall we have been doing more and more new customer. We just really started this business in April 2019, almost a year and three months.
Right? But now we just have more customers.
We are more customers that we know how to save the money to get those, to buy the machine very cheap and we are going to be doing testing by ourselves. That's going to be the cheapest way to do that qualification.
So, thereby, we do have some idea that how we are going to be spending R&D in the future. That is not something that we mentioned a year ago about how much we spent at that time.
Do you understand what I'm saying?
Brad Snyder
Yes. That's very helpful.
Thank you.
Masahiro Nagayasu
That's the point.
Brad Snyder
Yeah. No.
Thank you very much. I guess is there -- I guess, do you have a timeframe or how should we think about when you might do another stock buyback?
And are there certain financial criteria that you're looking to hit before you would start to do that? If you can share anything around that topic?
Now, that's all for me. Thank you.
Akira Sato
As you may know our -- the purpose of a share buyback is to protect our current shareholders from the kind of very volatile movement of our stock price. So, maybe at this point our stock is up, in line with the market trend.
So, in that case we will not buy our shares back, but if something happened in the market or our share price, maybe we are not hesitating to share -- buy our shares back from the fund market. That's our policy.
Brad Snyder
Got it. Thank you.
Thank you very much.
Operator
Thank you. Our next question come from Mr.
James Pulsford from Alma Capital. Please go ahead, Mr.
James.
James Pulsford
Hi. Thank you very much.
Sorry. Can I ask about your other precision motors where the sales in this quarter, they're down only a little bit year-on-year, and they've rebounded very sharply quarter-on-quarter.
You are back in the black here, but operating margins are still relatively low, but obviously a lot better than Q4. Could you comment on the recovery in sales you've seen here and prospects for the next quarter we've got coming up?
And whether you -- ?
Masahiro Nagayasu
Which motor?
James Pulsford
Other precision motor. So, if you look at small precision motor and you strip out HDD, then you're left with -- ?
Masahiro Nagayasu
You mean the other precision -- small precision motor?
James Pulsford
Absolutely. Yeah.
And in your materials, you comment just on the very small -- a very small fan motors, but for that area overall, could you talk about what happened to the different types of motor in this quarter and the recovery you saw and the prospects for profits in this profitability to perhaps maybe whether that can improve going forward or not?
Masahiro Nagayasu
Okay. So, number one, in the past, we do have a DC motor fan and the others.
Now, we are somewhat remodeling the total, so we now say hard disk drive and the haptic vibration and the other. The other includes that DC motor, a fan motor and all the other new products such as the vapor chamber or thermal solution management, okay?
So …
James Pulsford
Yeah.
Masahiro Nagayasu
… if you're just looking at a disk business, again, the movement or out performance on the top line and bottom line in the March quarter and this June quarter is clearly affected by the COVID-19. So, this business is centered in China.
So that is a very reason that we could have a little bit better number on this segment when the China is recovering from the COVID-19 impact mainly from March to the April, May, June, around that time, you understand that Chinese economy is coming back from the COVID-19 impact, then the riding -- we are riding on that end. So, if you're looking at that, the one -- one of the key product that we mentioned in the slide number 17, FDB fan, UltraFlo FDB fan, okay?
So, those are used by a notebook PC and tablets, mainly, the notebook PC. And as we say the COVID-19 is making a huge demand for notebooks, then our fans are used there.
Then, clearly, we had -- maybe historic high shipment volume, over 5 million a quarter for this June quarter. So, this is one example.
Okay? But this business is not just like hard disk drive one application.
There are so many different applications. And overall, as we say is another really big pillar of this business is the fan motor for a 5G station.
So as you understand the 5G station is more a number compared with the 4G because the coverage is much smaller than the 4G time. So, the total number of base stations in the future for 5G communication, there are a huge number.
Then each one may require a fan motor to cooling down the system. Then we are seeing that's going to stop maybe from this June quarter so we should have started maybe March quarter, but March quarter COVID-19 impacted the supply chain in China.
So, it is going to be maybe putting into the -- this June quarter than we saw a surge in demand for 5G station fan motor demand. That's another point which we can mention the other small precision motor.
Then the other one, which we mentioned before is the thermal solution, 5G smartphone is coming. And 5G smartphone requires a new solution or a heat dissipation thermal solution, where we say we are providing a vapor chamber, heat pipe, heat sink and other so-called heat related technology.
Then that business is growing. Okay?
Then the final one is haptic. Haptic was a huge hype in 2015, but it's coming down.
Okay? So it's for North American smartphone, then we have been shipping those so-called a haptic vibration motor from 2015 to today.
Right? Then the total volume is clearly depending on the customer's total volume.
We maybe keeping a decent share, maybe roughly we say one-third of the customer, because there are three suppliers in this business, then we are keeping one-third share from 2015 and up to 2025 we will be competing against the Chinese competitor, but still we are keeping that share, that the current situation. So, those are some of the last example of what kind of business are there.
So, the other small precision motor, other than hard disk drive. Is that fine?
James Pulsford
That's good. Can I just ask one?
Just you mentioned you basically chop it up into hard disk, haptic and others. Just so that I can understand what's happening in others or could you just tell me what -- the last quarter, what were the sales and profit margin just for the haptic business, please?
Masahiro Nagayasu
For the full year last year okay, full year last year, we say total haptic sales were something like a ¥37.7 billion, but that was somewhat the breakeven.
James Pulsford
Yeah.
Masahiro Nagayasu
Okay? This year, maybe we are guiding something similar like ¥37 billion for the full year top line sales.
But we are looking at something like 3%, 3% or 3% to 4% operating margin for this year. Okay?
James Pulsford
Yeah. And what happened in Q1?
Masahiro Nagayasu
Unfortunately, at this moment, this customer is very severe customer, very difficult to make money for the past, even today.
James Pulsford
Yeah. And can you tell me what -- just so I can strip it out, what were the sales and margin just in Q1, please?
Masahiro Nagayasu
Q1 this one, this quarter is ¥10 billion. Yeah, ¥10.2 billion and breakeven.
Yeah.
James Pulsford
And breakeven? Okay.
Wonderful. Thank you very much, indeed.
That's very kind.
Masahiro Nagayasu
Yeah.
Yoichi Orikasa
Okay. Next please.
Operator
Thank you. [Operator Instructions] So, the next question will be go to Mr.
[indiscernible] from MUFG Security America. Please go ahead, sir.
Unidentified Analyst
Hello, Sato-san and Nagayasu-san. First of all, congratulations on hitting such a strong figure, which is way stronger than our figure with our [indiscernible] the difference between your first Op -- first quarter Op, ¥28 billion versus ¥52 billion [ph] again, is that half coming from the cost cuts and the rest of the half coming from the top line increase?
And then I have a question on more like a qualitative asset. And I want to know if that your new management have introduced any new strategy for -- to achieve such a strong figure?
Also, third question is, how does new leadership lead by Seki-san possibly impacted for -- such a strong Op result this time. Thank you.
Masahiro Nagayasu
Okay. Can I ask you question is, well, how much of that ¥28 billion Op which we reported for the June quarter, how much is coming from a new endeavor like the WPR4 which is mainly, you mentioned the cost cut, right?
That number one question. The second question is how that’s going to be related -- relate to our management structure which is two top system, Mr.
Nagamori and Mr. Seki.
Is that fine or …
Unidentified Analyst
That's right.
Masahiro Nagayasu
… your question is different?
Unidentified Analyst
Yeah. That's correct.
Thank you.
Akira Sato
Yeah, I'll respond to the second question first. I'll probably fix them the leadership is -- how quickly we can decide, make a decision in any area, especially the capital expenditure to be increased the production capacity for auto or those kinds of things is currently very difficult decision making.
But Seki-san and Nagamori-san discussed every week and what is the right direction. So -- and the decision making speed has been increased a lot with kind of new management.
So Seki-san leadership is kind of a -- to speed up our operations. That's again -- also to your second question.
And the first question is, as I mentioned, maybe ¥10 billion of the cost restructuring, it's contribution from WPR4. Is that fine?
Unidentified Analyst
Yeah.
Masahiro Nagayasu
We never say that half is coming from the cost cuts, but we -- as Mr. Sato mentioned clearly, we mentioned roughly ¥10 billion, then we just try to worrying how much of that ¥10 billion is coming from the -- so-called the procurement side or labor cut, labor cost cut and how much of the fixed costs, already we mentioned, or we answered that in the previous question, right?
Unidentified Analyst
Okay. Yeah.
Thank you very much.
Operator
Thank you. There are no further questions today.
[Operator Instructions] Mr. Orikasa, there are no further questions today.
So, at this time I do like to leave the conference back over to you for any additional or closing remarks.
Yoichi Orikasa
Okay. Okay.
We would like to conclude the conference call. Thank you very much for your participation today.
Should you have additional questions later, please do not hesitate to contact Nidec Corp or your sales representative at Mitsubishi UFJ Morgan Stanley Securities. Thank you very much.
Operator
Thank you. That's concludes today conference.
Thank you for all your participants and you may disconnect now. Thank you.
Yoichi Orikasa
Thank you.
Akira Sato
Thank you.