And I think this is proving it. Once the supply comes and the volume comes, we can get much more profit. And I think this is what we’ve been saying the last couple of years. And I’m happy we can actually demonstrate it now. So that’s how I assess Q2, Yoshida-san. For your second question about the guidance revision from JPY 550 billion to JPY 620 billion, of that JPY 70 billion increase, about JPY 40 billion is FX as we updated the exchange rate of yen to dollar. We updated to JPY 140 to dollar. And also, I assume that the raw material will continue to give good news. So we added JPY 10 billion more for raw material. And then the rest is performance, another JPY 20 billion based on the good moment that we’re seeing in first half. So that makes up a JPY 70 billion improvement in their guidance.
You might say that it’s still a little conservative or it could be upside, but right now we put the yen at JPY 140 to the dollar in the second half. Of course, if the yen moves, we might have a little bit upside versus that. Does that answer your question, Yoshida-san?
Arifumi Yoshida – Citigroup Inc.: [Interpreted] Yes, thank you. If so, for example, in the first quarter, there were quality costs that was a negative contribution, but in the second quarter, it’s performance which helped increase the profit, there was not one off?
Stephen Ma: We mentioned in Q1, the recall cost we viewed as timing, that’s just happened. That two or three big campaigns all happened at one time in Q1. Usually, for us, it happened throughout the year and it just happened to be occurring earlier and at the same time. So we do not see as many recall campaign costs happening in the next three quarters, because we think in the pipeline that we are looking at, we don’t see anything major that’s coming right now.
Arifumi Yoshida – Citigroup Inc.: [Interpreted] Okay. Thank you so much.
Makoto Uchida: [Interpreted] Okay. Thank you so much.
Operator: Moving on to Goldman Sachs, Yuzawa-san, please.
Kota Yuzawa – Goldman Sachs: [Interpreted] Yes, thank you. This is Goldman Sachs, Yuzawa. I have two questions. That’s a great result. And in terms of performance, operating profit and cash flow are at a higher level now. Once again, what’s the dividend policy again? This time, you have officially announced and trust the remaining 28.4%. JPY 1 trillion cash will allow you to afford many investment needs and cash out. So what’s our policy on cash change, because of this policy or the changes in the circumstances? And you are putting off the timing of announcement to MTP. But is there any area that you need to brush up further, whether it’s a product or operations? Could you disclose what we have said today? And as you mentioned, the China update. How long will you spend to restore Chinese operation and deliver results? Could you give us a timeline? These are my questions. Thank you.
Makoto Uchida: [Interpreted] Yes, thank you. China regional MTP, I will talk about this. In China, if you look at the present status, we see a lot of new cars introduced between June, July and August, 61 new models were launched in the market. In October, as far as what we know 22 models were launched. And pricing, more than what we imagined, there is a price reduction in the market. For example, in JV, the level of Nissan, we are in the middle of the price level. More car makers are reducing the prices. Largely making our discounts to compress the profit is not what we are trying to do. We are striking a balance between profit and presence. That’s what we are doing in China. Therefore, in China, probably towards the end of the calendar year, when based on my experience in China, probably many car makers will do the discounts.
That’s my concern. And with so many new models launched, incentives may arise. For example, even if we spend FMI [ph], it wouldn’t make an impact. That is why we are struggling today. Having said that, we have many units in operation. Car park in internal combustion engine, as I said, Sylphy remains number one in the ICE segment. So there are many districts where ICE are in high demand. And that is why we are rebuilding our sales strategy accordingly. So this is how we are trying to maintain the presence as much as possible, so that we can reach to the launch of the four new energy vehicles. That is the most important thing in China. So we are not overly optimistic about China. China, next year, we believe that things will calm down. That’s what we anticipate.
But still, we need to monitor the situation carefully. In these circumstances, the unit – if you think about the capacity in China, our utilization rate is very limited. Therefore, we would like to compliment this by doing export, but we need to optimize the fixed costs. Going forward, we need to discuss with partners to reinforce the plan to reduce the fixed costs. So while we maintain the performance today, we would like to take action to grow and increase presence, and introduce the cars that are adapted to the Chinese circumstances and bring China operation back in growth track. And these new cars will come in the latter half of 2024. So we would like to spend time, whether in the 2-year, 3-year span, we would like to bring Chinese operation back on track.
So that was about China. At the same time, for the midterm plan. Yes, midterm plan, if the KPIs up to 2026 or the figures, these are can be shown, but we need to look at MTP and beyond, not only MTP period. Now, the market is fragmented. So in each region, we need to specify the strategy. That’s what we need to demonstrate to the market. Otherwise, it wouldn’t be credible. People will not understand how we are going to achieve the goal that we define. I think this is the key element. For example, in North America, how are we going to address the IRA and increase presence at the same time? What will be the battery strategy? What is the electric – as part of electrification strategy in Japan? The question is how to increase the share of electrification.
The specific concrete action is what we want to explain, and that’s what we are trying to work out. So the key here is that in Nissan Ambition 2030, we define a vision. And midterm plan is in the middle of this. So midterm plan, as you may know, in the auto business model in 2026 are already defined. So what’s beyond this? In 2030, what should be the performance that we deliver in each market and how to do it specifically? That’s what we want to define clearly in the midterm plan and beyond. Yuzawa-san, did that answer your question? That was about MTP in China.
Kota Yuzawa – Goldman Sachs: [Interpreted] Yes, you are looking into a more comprehensive plan. And could you go back to first question that I asked?
Stephen Ma: So thank you, Yuzawa-san, for recognizing our good performance in Q2. And just to share a little bit extra insight for you, the net income in Q2 is the highest ever on Nissan record for Q2. That’s also, we didn’t want to brag about it, but it’s actually one of the best Q2 we ever had. But your question is about the OP and free cash on dividend policy, if I understood correctly. So as we said before, eventually we want to get back to 30% payout ratio for dividends. But we will do it gradually. Obviously, if our profit is improving so quickly, it’s taking a little more time, because then the payout per share, I mean we are increasing it but I don’t know if I can increase at the same speed as the how fast the profit is increasing, but we will be increasing the dividend per share gradually.
And eventually we will get to the 30%. But I cannot commit to the timing right now, because we are also looking at what we’re going to do in the midterm plan and what investment we have to spend money on. And as we just explained, for example in China, we are pulling ahead in many things to meet the market demand and market speed. Similarly, we’re going to be doing other things, adjustments in our strategy to meet the shifting market demand. So there might be a need for investment that we’re going to do for future. So this is one of the reasons why you can see at the end of first half, we decided that we’re going to have a much higher net cash position, because we knew that in second half we will have several already big potential cash out item.
