One is, as you all know, the Ampere investment. Most likely it happened within the next 6 months. And then the other ones could be if we decide to sell some of the shares back to us, we want to be ready to take it. So this is why, actually we knew rebalancing will happen in November. So we knew after rebalancing, the windows open for them to start selling. So we wanted to be ready for that anytime they want to sell. So, intentionally, we kept a little more cash than normal. Reasonable level of cash, I mean, I think in the past we said we want to keep it on a trillion, plus or minus a little bit is okay on that level. We don’t need to have as much, because we’re not now much better at managing free cash from a quarterly basis and we are much more efficient at managing things.
So we don’t need to have a huge net cash position on the auto side to function and operate smoothly. So I believe I answered, I think two or three questions that was embedded in your one question. Yuzawa-san, is that okay?
Kota Yuzawa – Goldman Sachs: [Interpreted] Yes, anyhow, we are looking forward to the MTP announcement. Thank you for your elaboration.
Makoto Uchida: [Interpreted] Yuzawa-san, thank you for the question.
Operator: The next question will be asked by Kunugimoto-san of Nomura Securities. Please go ahead.
Masataka Kunugimoto – Nomura Securities: [Interpreted] Thank you very much. Can you hear me?
Makoto Uchida: [Interpreted] Yes, we can hear you.
Masataka Kunugimoto – Nomura Securities: [Interpreted] I have two questions. First of all, the first question is addressed to Mr. Uchida. JPY 600 billion operating income is quite significant with investment into EV and for EV, the profitability will become lower. So there would be intense competition over sales in North America in the next 3 to 4 years. Will there be an opportunity to increase the profits further to the next level? If so, where do you find the opportunities to elevate profits? Can you identify the major factors for potential increase in profits? That’s my first question. Secondly, this will be a granular question. This time, in price revision, JPY 57.6 billion pricing selling expenses, JPY 44.1 billion is the effect in terms of increase in profit. Due to inflation, there could be some regions where cost is rising. But are there specific regions where price increase was done successfully? Those are my two questions. Thank you very much.
Makoto Uchida: [Interpreted] JPY 600 billion. We’re not complacent. In the Nissan NEXT transformation program, we are to establish a robust foundation. So this is the starting point. And we are now entering into the difficult phase. Electrification can go further, and as you have rightly pointed out, the profitability for electrified vehicles is not at a satisfactory level. As we finalize the MTP, how can we optimize cost? This is one item where discussions are conducted internally, intensively. In EV, the Chinese manufacturers as well as Tesla are gaining cost competitiveness more than we had expected, and they are reducing their selling price as well along with such cost competitiveness. So as we try to further electrify in Ambition 2030 X-in-1, a stepped cost reduction or in battery, cobalt-less batteries.
We have to do a step further in order to reduce cost or else JPY 600 billion plus profits would be difficult to achieve. There would be various challenges. Having said, so however, due to the elevated quality of sales, we have been able to secure profit in each of the models. So as the foundation, we will maintain the current level. But with higher electrification ratio and as you have rightly pointed out, with the investment burden becoming higher, how can we optimize cost? We have to accelerate all efforts in cost optimization. And at the same time, regarding investment into electrification, under the framework of the alliance, these changes have begun to occur. How can we more cleverly do something with our partners or maybe find other partners to share investment burden?
There could be several options which we are discussing at the moment. So including the burden that we will be bearing, we want to establish a foundation that will allow us to deliver sustainable profits. And one key would be the MTP. So what are the important challenges? Cost competitiveness would be one challenge. And in electrification, we need to reduce cost a step further. And Stephen?
Stephen Ma: I’ll answer the other question. I believe, Kunugimoto-san, you’re looking at Page 33, right? The Q2 selling expense, incentive pricing improvement of $44 billion. And you’re asking why that is so big. If I understand your question correctly. Well, as we mentioned before, we are, last few years, focused very much on quality of sales. We are very much disciplined, despite what happens in the market or what competitors do. And one of the things is we are focusing not just the major markets but also all the minor markets to make sure we are pricing and for the value that we put in the cars. And for many of the cars, we are as newly launched in the market like e-POWER variants of various cars like extra cash or other basis.
They are actually very, very well received in some of the markets. South America, Latin America or Southeast Asia et cetera, we are able to put price for that. But that doesn’t explain all of the number. A big portion of that number is in some emerging market where there’s hyperinflationary environment where the FX is going up a lot. Unlike the old ways on Nissan, we sometimes use that advantage to keep the price low and sell more volume. Now, what we have done is if the hyperinflation or currency move a lot, we move the price at the same time. So we will adjust the price immediately. Even if it means we sell a little bit less volume, but we make sure that we are pricing for the FX movement in the local markets. So a lot of that big number you see in here is what I mentioned earlier, negative FX on emerging markets like Turkish Lira, Argentina Peso, et cetera.
Those markets, for those negative FX we have on global, immediately we are pricing for it in the market. That’s why this number is so big. Kunugimoto-san, is that okay?
Masataka Kunugimoto – Nomura Securities: [Interpreted] Yes, thank you very much.
Makoto Uchida: [Interpreted] Excuse me, this is Uchida speaking. In terms of profit, naturally growth is what we are pursuing. Therefore, compared to the current level in the midterm plan, well, we need investments in electrification and profitability of electrification should be addressed, but we would like to pursue the profit growth. This remains unchanged. Thank you so much.
Masataka Kunugimoto – Nomura Securities: [Interpreted] Okay. Thank you.
Operator: Moving on to Bank of America’s Nihonyanagi-san. Go ahead with your question.
