Mikio Hirakawa: My name is Hirakawa from BofA. I have 2 questions. The first is about semiconductor. And previously, for the announcement from January to March, so at the end of the quarter, that will be higher than year-on-year. But the market condition is worse than your April forecast. So is there any change about your strategy? And the — well, the reason for the March FY ’23, why you are quite optimistic? And for Pictures, because of negotiation, it’s not easy for you to reveal your strategy about the Pictures. And so strike, how to deal with strikes of writers and the actors? How do you incorporate the impact into your — the financial results at this moment?
Hiroki Totoki: Thank you very much for your question. And first is I&SS. The first quarter — at the end of first quarter, the inventory level and about it, if I may explain, as a result of sales expansion, that has increased. And also, there is some downside of — the downward revision of sales during the first quarter. And for the future outlook, logic and sensor, strategic inventory will decline towards the end of the year. But inventory amount itself, the sales has been expanding. So FY’23 — at the end of FY ’23, compared to the end of FY ’22, it is expected to increase. There is no change in this forecast. But I should say that basically, as a result of sales expansion, this is increased as a result of sales increase. And so it does not mean that we have excessive inventory.
And we have to pay close attention to the quality of inventory, but to a certain extent, we’ll keep inventory under control. And we have to effectively utilize the equipment and have appropriate timing for the investment. And what is the reason we are optimistic about FY ’24? And the reason is that the demand for the image sensor, we do not think that we make wrong assumption about it. And the issue is — that pertains to the manufacturing cost or excessive, the inventory of — our competitors’ inventory in China, so as a result, decline of ASP. So that has adversely impacted the profitability. And as for the business, the volume itself, our forecast is not quite incorrect. And so that is the reason we are quite optimistic about FY ’24. And your second question about Pictures.
About this fiscal year, under our assumption, we have actually incorporated our assumption into the forecast. And for the details, very difficult for me to share the details with you. But in terms of profitability, the impact on this fiscal year’s business is relatively limited because business turnover is long for the motion pictures industry. And therefore, that is the reason that we forecast this way.
Unidentified Company Representative: Moving on, JPMorgan Securities, Ayada-san, please.
Junya Ayada: Ayada from JPMorgan. I have two questions, if I may. The first question about game. Earlier, full year profit increased, as explained. The first quarter, profit changed. Can you elaborate on the first quarter? Compared to last year, JPY3.6 billion decrease, and excluding FX impact, about JPY6 billion decrease. In your explanation, you talk about Bungee expense is negative JPY16.6 billion, and positive side, software increased add-on point about JPY80 billion. So the software increase and there’s contribution to profit, the change of the sales channel was explained as well. On the other hand, the profitability of software seems to be deteriorating. In the current quarter, the sales of software is large, but mainly older titles are sold.
