But then that would certainly improve the flow. And you can actually use that management resources to some other – for some other purposes. And there are some steady progress made in the projects – some projects. We cannot disclose what’s inside, but it’s not necessarily related to the business sentiment. But the problems that we had already been having needs to be resolved. That’s what we are doing. And as for economy-related initiative, we are on a high alert or that’s what we are telling the whole company to be in, especially in order to respond to cost inflation, pricing strategies have to be considered how much pricing power and price increase power do we have, and how much of value we can increase. And in the cost increase on the increased interest rate environment, how we can respond to that in the mobility in North America, if the interest rates go up, with the combination of the existing businesses that we have, how we can deploy that in the services and products.
That ingenuity is really what it counts. And that is what we are doing on a whole company basis. And of course, we are certainly cautious about the whole economy, but the operation level has to be enhanced. That is the basis, and that is what we are doing as a whole company-wide initiative. Thank you.
Unidentified Company Representative: I have two questions. First, as the President Hori mentioned, the price strategy vis-à-vis the changing costs were mentioned. So when the economy is uncertain, the cost management becomes very important. So from that perspective, when you look at the results, the SG&A is up by 20% year-on -year. So in Q1, year-over-year, 18% increase, I think. So for Q2, it seems that this has accelerated slightly. So including the inflation and also the Forex, the prices are rising. I think those are the reasons. So from the cost perspective, is this as you expected or is it manageable or is it higher? So you need to take some additional initiatives. So I’d like you to explain on costs in general. That’s my first question.
The second question is about the cash flow allocation. Again, so on Page 8, so growth investment from Q1, it’s increasing. So for the full-year vis-à-vis the target of MTMP exclude the management allocation in six months, I think that the progress has been about 50%. So for your company from [indiscernible] on investments creating the kind of a cluster of companies. I think that’s something that was included in MTMP. And the size of those, are they becoming bigger or is this just a matter of timing? If you can explain that. Thank you.
Kenichi Hori: Yes, thank you for your questions. So to your first question, the SG&A increasing, there are several reasons behind that. Of course, the inflation is clearly one of the factors and overseas businesses due to the Forex. The SG&A has been increasing based on yen. So, of course, that the revenues are up due to the Forex. So that is one thing. And there are several things that are examples of the consolidated basis. For example, other some companies which are consolidated from the equity method. So that will be included in SG&A. So that is another factor. And as a core business, the positioning could be changed and also the gross profit, everything will be accounted for. So that is how we would like you to look at.
But as I said earlier, when adding the value to the projects and the employees at the headquarters or each business or projects, cost management and also improving the leverage of the operation, those are the things that we like to work on steadily. To your second question about the capital allocation, the growth investments. So especially when there are a lot – well, it is not the case that we are seeing a lot of projects which are increasing in scale. It is always the case that we have candidates of those projects, but some of them are the ones that we don’t actually do or choose not to work on. So there have been those projects like that in the past multiple years. So we will scrutinize and we will come up with the different alternatives and verify that.
