Our next midterm business plan, which we are now finalizing, will be a bridge to realization of this vision. Though, we intended to announce this in autumn due to the radical changes in the market environment in the recent month, we need to ensure that the plan is comprehensive and credible, hence we will present to you at an appropriate timing. Thank you for your attention.
Operator: Thank you very much. We are now starting the Q&A session. [Operator Instructions] Okay, starting with Citigroup securities, Yoshida-san. Please go ahead.
Arifumi Yoshida – Citigroup Inc.: [Interpreted] Yes, do you hear me? Citigroup, Yoshida is speaking. Hello?
Makoto Uchida: Good afternoon.
Arifumi Yoshida – Citigroup Inc.: [Interpreted] Okay, thank you so much. The first question is about the quarter two. How do you assess the performance? More than JPY 200 billion is the profit that you generated, which is strong. Is there one of factors that contributed to this strong number? And for the full year projection, you made the upward revision, probably you don’t disclose a breakdown of the contributors. Could you get into the details of the upward revision? What helped you to increase the result? And the retail volume, 3.7 million units remain unchanged. But if you look at the progress rate in the first 6 months, we see weak sales in many regions. Is this due to supply chain issues or because of the intensifying competition? Could you give us the details for each region or each market? In the second half of the year, you have a plan to increase the volume compared to first half. So how credible or how achievable is it? Thank you.
Makoto Uchida: [Interpreted] This is Uchida speaking. The second question, the Q2 profit will be presented by CFO later. But before that, let me talk about retail volume projection. Yes, as you said, in the first half of the year, we were affected by logistics and supply chain issues. So that is why the volume in the regions were slow compared to our expectation. At the same time, semiconductor supply issue is becoming limited now. But in the second half of the year, this supply will come back. And there are many customers who are waiting for a long time for the delivery in many regions. So in the second half of the year, we believe that there is an opportunity to increase largely the volume. So that is what is behind this 3.7 million units of full year projection.
By region was what you wanted to know. In Japan, our Serena, X-Trail, there are a lot of customers waiting for the delivery of these cars. So we would like to recover this supply in the second half. In U.S., the logistics from Mexico was largely affected. And partially in the production plants, we are increasing production, especially from Mexico to U.S., we are incorporating this production increase because the compact cars are more in demand. So we are going to supply these compact cars in that supply for the second half of the year. The biggest challenge is China. In China, 800,000 units is what we are retaining as a full year guidance. In October, across the monthly sales plan, for example, Dong Feng-Nissan model is doing better than the monthly plan.
And four models were introduced in July in China, and we wanted to recover in the second half of the year. But looking at the results in September – or August and September, we were struggling. But starting from October, we are ramping up gradually. So taking this into consideration, we decided to maintain the full year guidance for the volume. Having said that, there are uncertainties, especially in China. Therefore, within this fiscal year, we would like to monitor the circumstances carefully. And at need, we would like to disclose how we project the volume.
Arifumi Yoshida – Citigroup Inc.: [Interpreted] Okay. Thank you.
Makoto Uchida: [Interpreted] Yoshida-san, did that answer your question with regards to the volume?
Arifumi Yoshida – Citigroup Inc.: [Interpreted] Yes, thank you.
Makoto Uchida: [Interpreted] Yes, in that sense, you mean that mainly production and supply chain issues were largely affecting your performance. So there’s no issue with the demand and intensifying competition. Other than China, that’s not a concern for you for the second half of the year. Well, in our plan, there are many customers waiting for the delivery, so we will make sure we are supplying them. But Europe, circumstances in Europe is the TIV in Europe is changing now, so we will monitor the situation carefully and follow-up accordingly.
Arifumi Yoshida – Citigroup Inc.: [Interpreted] Thank you.
Stephen Ma: Let me add to that just to clarify. I think you guys also follow what’s happening in Europe market. It’s starting to slow down a little bit. The order backlog [ph] that most OEM is coming down a little bit, but still we have a very healthy order backlog that we are still working through. So far, the demand for a vehicle is still very strong, especially with the very refreshed lineup we have. We had a new Juke a year ago. We had a new X-Trail e-POWER. We had a Qashqai e-POWER. And the new Ariya, or launch very solid four new models, SUV segments right in the heart of the market. So all of the vehicle are very high demand. So we want to produce more so we can sell more. So this, as Uchida mentioned, we don’t have a big worry about the demand for our product.
I think it’s just a matter of the market slightly slowing down a little bit, but for us it’s still a very healthy outlook. That’s for the volume [addition further] [ph]. Your question about the Q2, how do I assess Q2 performance? Because as you mentioned, JPY 208 billion. If I can take you to the appendix, I think probably easier to understand. So if you look at Page 29, I think we show the consolidated sales volume. Can you show the Page 29? You guys have the appendix? You should have some.
Arifumi Yoshida – Citigroup Inc.: [Interpreted] Yes, I do.
Stephen Ma: Page 29, the consolidated sales volume is basically wholesale volume. And you can see that in Q2 on the right, it grew from 560,000 to 683,000, so about 123,000 units’ increase. That’s the biggest reason why we had such a big, much better profit than last year. You look at the next page, Page 30. You can see the step chart for the Q2 standalone versus last year. Last year we made JPY 91.7 billion, this year JPY 200 billion, so doubling. And you can see that, yes, we had some benefit from the weaker yen. So actually within that 11, about 25 or 26 is U.S. dollar. But we were hurt by many minor currencies like Argentina peso, Turkish lira, Mexican peso, et cetera. That sort of net, the U.S. dollar, possibly impact down to only 11.
So net-net, we got some benefit from FX raw material, as you know, prices come down. So we can a little bit benefit of that. It takes a little time to work through our P&L, but we’re starting to see the benefit of roughly JPY 20 billion. And the big part is, as mentioned, with the 120,000-some-unit increase of wholesale, the performance on the sales performance is improving JPY 112 billion. That’s the major reason with the increase volume came the increased profit. And this was more than enough to offset the current inflation regulatory costs that we see in the Monozukuri and in others. So for me, it looks actually we are having very good foundation. As we have said multiple time in the last couple of years, we had good products. We have fixed the foundation of the company, we just waiting for the volume.
