Sony Group Corporation 2023 Earnings Call
Speaker 1: working capital and capital expenditures and in consideration of the current M&A market environment, we decided to reduce the amount from the initial plan of 2 trillion to 1.8 trillion. To grow over the mid to long term, we will continue to invest. However, in the short term, we aim to carefully assess the valuations and timing investments.
Speaker 1: year as the year to steadily achieve the targets of the current mid-range plan while emphasizing the management of immediate risks at a time when the business environment is unstable. In the next mid-range plan, we aim to achieve a balance between strongly emphasizing mid- to long-term business growth and profit growth during the period of the plan.
Speaker 1: We aim to prepare for this during this fiscal year and show the content at the beginning of the next fiscal year. Together with the Sony Group's management team and the employees around the world, we aim to create a positive spiral of growing our business, attracting talented people, increasing corporate value, and giving back to society. That is all for my presentation.
Speaker 2: Q&A is from investors and analysts and we allocate about 20 minutes each for Q&A sessions. Those of you who have made registration for questions in advance, please be connected to the designated telephone number.
Speaker 2: Also, as to the way of asking questions and matters to be paid attention to, please confirm with the invitation letter in advance. Those of you who have not registered for questions in advance, you can listen to the Q&A session via webcast. You are kindly requested to wait for a few more minutes before we start the Q&A session.
Speaker 2: Thank you for waiting.
Speaker 2: We will now begin the Q&A session with media.
Speaker 2: For those people who respond, it will be Mr. Hiroki Tottoki, present COO and CFO , Ms. Naomi Matsuoka, Senior Vice President, Mr. Sadahiko Hayakawa, Senior Vice President, who begin the Q&A session. I would like to ask you to limit your questions to two per person if you have a question.
Speaker 2: Please press asterisk followed by number 1.
Speaker 2: The first question is Mr. Tutsumi from Nikkei Shimbun. Mr. Tutsumi, the floor is yours.
Speaker 2: This is me from Nikkei.
Speaker 2: I have two questions, if I may.
Speaker 2: I may. The first question.
Speaker 2: about the growth going forward.
Speaker 2: in the short term and medium term.
Speaker 2: This is Fiskaia Rojic.
Speaker 2: for each business.
Speaker 2: it is going to, the roe is going to come down.
Speaker 2: There is an increase in inventory and other factors are there. So when would you expect to see increase in ROYC again?
Speaker 2: For each business there may be differences, especially for games and entertainment.
Speaker 2: Can you explain what is a prospect going forward?
Speaker 2: Specifically, what will be the drivers for improving ROYC? Can you please elaborate on that? That's my first question. Secondly, in the medium to long term, what will be the drivers for improving ROYC?
Speaker 2: Specifically, what will be the drivers for improving ROYC? Can you please elaborate on that? That's my first question. Secondly, in the medium to long term, growth.
Speaker 2: mobility and metaverse.
Speaker 2: are the key in this area.
Speaker 2: possible risks
Speaker 2: and the hurdles and challenges, how do you look at risks and for example in competitive environments?
Speaker 2: What is your outlook?
Speaker 2: That's my first question and second question.
Speaker 2: Short term.
Speaker 2: short term. You will be financing with borrowing.
Speaker 2: excluding financial services and net debt.
Speaker 2: Is this temporary?
Speaker 2: measure or
Speaker 2: Toto Kizan became present and you will be changing the rules for the discipline and you will be using more of the debt borrowing. What is the direction going forward?
Speaker 2: Thank you for your questions.
Speaker 2: Well then, first...
Speaker 2: Your first question, Roiik.
Speaker 2: Many about entertainment, that's your question. With regards to Roic.
Speaker 2: FY22, as you know,
Speaker 2: Especially in-game, PS5 inventory has increased.
Speaker 2: Working capital increased as a result, which resulted in deterioration of ROIIC.
Speaker 2: That is a major point.
Speaker 2: Basically,
Speaker 2: PS5 hardware sales increased which resulted in decrease in inventory.
Speaker 2: So this will be working positively for ROYC.
Speaker 2: Especially acquisition related expenses in FY22 and FY23, 50 to 60 billion of expense.
Speaker 2: impact will be much less in FY24 and onwards, which will also be a factor to increase ROIC.
Speaker 2: it will be much less in Fi24 and onwards, which will also be a factor to increase ROIC. And then for music.
Speaker 2: M&A and catalog acquisition.
Speaker 2: had impact upon deterioration of oil, but in the medium to long term...
Speaker 2: M&A is sure to contribute to growth and the catalog, having catalog.
Speaker 2: is indeed enhancing a strengthening position in industry. Therefore, for ROIC, we look at medium-term perspective and I believe that it is going to come to optimum level as for the pictures, recovery from the COVID-19 and reopening of the economy.
Speaker 2: So theatrical release will increase and production will also be increased. Production expense increases. Roic will go down but then with the theatrical release profit will be generated and the Roic will go down again. So we will be growing in the medium term.
Speaker 2: will increase and production will also be increased, production expense increases, ROIC will go down but then with the theatrical release profit will be generated and the ROIC will go down again. So we will be growing in the medium term. And then…
Speaker 2: mobility and meta-buzz, what possible risks are there and what are the hurdles was your question.
Speaker 2: With regards to mobility...
Speaker 2: We are in the middle of development at this point in time. We are not at a stage where we should be discussing risks or concerns.
Speaker 2: Opportunities are huge.
Speaker 2: Industry is transforming. It is a time of transformation. So we take advantage of this time and with joint venture with Honda Motors we are going to show results.
Speaker 2: Industry is transforming. It is a time of transformation. So we take advantage of this time. And with joint venture with Honda Motors we are going to show results. And then with regards to Metaverse.
Speaker 2: The expectation is higher than no one is expecting, but in the medium to long term with the evolution and development of technology.
Speaker 2: at some point in the future, the market will blossom.
Speaker 2: and more than anything else.
Speaker 2: We are a company which is centering around entertainment and 3D CG lantern related to meta bus. We have technology which is our strengths so we in line with the growth of the market in a timely fashion we are going to maximize our technology.
Speaker 2: And then net debt on excluding financial services net debt situation.
Speaker 3: Thank you.
Speaker 2: debt equity balance.
Speaker 2: is basically the balance with the rating.
Speaker 2: So, on that point, I would like to invite Mr. Hayakawa to make some supplementary comments. Thank you for your question. First, I would like to suggest a program that is based on the Chihiro floral cosmic
Speaker 2: Balance sheet net debt you mentioned. At the end of March, the consolidated excluding financial services, 590 billion. As Toki-san explained, PlayStation 5 production increased which resulted in increase in working capital.
Speaker 2: PS5 is to be penetrated widespread for growth and with the intention we are increasing working capital.
Speaker 2: As Toto-ki said in his speech, FOV is financed with short-term borrowing.
Speaker 2: Next fiscal year, or this fiscal operating cash flow is 1.25 trillion yen and from third quarter this fiscal year we are going to convert the inventory into cash and manage cash.
Speaker 2: Now, about fiscal discipline basically, our fiscal discipline remains unchanged. We have a strong financial basis. For example, one of the disciplines, the ratio of capital to the shareholders is 50.3%. We have strong financial.
Speaker 2: So, while maintaining fiscal discipline, we are making investment for growth. So, the growth investment and the fiscal discipline and efficiency of balance sheet, we hit the right balance and come up with the financial policy. Thank you. So, we would like to invite next question please.
Speaker 4: From Dato-Yoke-Zain, Umega-Kishan please.
Speaker 4: So from the Tokyo case, I hope you can hear my voice, yes.
Speaker 4: So I have two questions. The first question is due to the macroeconomic situation change so for the ETS, I think you have referred so in the European country there has been a slowdown in the economy and therefore due to the reason there are lots of companies rebutting on conservative forecasts and therefore how it's been incorporated.
Speaker 4: question talking about the macroeconomic condition being changed and looking at the whole so the business environment so what we hear there have been a financial restraint and also there due to this Ukraine issue and also the global economy disruption and
Speaker 4: So, what because due to the reopening of the pandemic, there is a forecast for the recovery. However, my gut feeling is that there is still transparency and therefore that is a global condition. However, for our business.
Speaker 4: So from our business perspective, so the US economy condition is going to give a direct impact and also there is a great impact to the global economy and therefore we for focus on that US economy. Just in terms of our location and our supplies as well as our supporters industry.
Speaker 4: So there have been a change of CEO and our intention for this change is that Mr. Angel is going to assume the CEO position starting from the next term because he has worked in the finance ministry and also the FSC.
Speaker 4: and also in the global economic condition and therefore he has this great knowledge. And therefore, since FY2020, so he had been serving as a senior advisor giving advice. And this time...
Speaker 4: So we expect him to contribute to this leadership and therefore for the overall decision we had asked him to assume this position.
Speaker 4: Thank you.
Speaker 1: Let us move on to the next question.
Speaker 1: Nokojima-san from Kyoto Tsushima, please.
Speaker 1: This is Nakajima from Kyoto 2. Can you hear me? Yes. I have two questions.
Speaker 1: We're going to PlayStation 5. This fiscal year, 25 million is the target, which is the highest ever.
Speaker 1: compared to PS1 and 2. Is it the highest ever compared to those units if that is the case? Smartphone games is recently very popular and the hardware costs have been going up. Prices have been going up with such a severe environment.
Speaker 1: Is PS5 really popular? What is your take on that?
Speaker 1: and for smartphone games being really popular.
Speaker 1: the game consoles, what is the, what is going to be the changes in the existence of that in FY23?
Speaker 1: on a profit basis that this part is going to go down for software. So you talked about the increase in software development costs. What is the background of that? Can you specifically share that information with us?
Speaker 1: Thank you very much for the question. So this is about the games.
Speaker 1: For this fiscal year, the target for PS5
Speaker 1: is 25 million units. The reason is because...
Speaker 1: compared to the past PES generations compared to them in a single fiscal year, 25 million units, if we can achieve that it will be the highest level ever.
Speaker 1: The reason why we believe that this is possible. PS4.
Speaker 1: customers exist now and
Speaker 1: the PS4 usage, use them and they switch to PS5.
Speaker 1: And that we looked at how much would be switching and also there are customers, new customers also and we've been looking at that as well and based on the data
Speaker 1: we have put together this forecast and based on this forecast we believe that 25 million units within this fiscal year is something that we would be, we believe that we can achieve. And also regarding the second question.
Speaker 1: or rather what would be the meaning of having these game consoles in the future. Regardless of the times.
Speaker 1: having some kind of hardware at hand is necessary. The computing power would be at hand or it could be in the cloud.
Speaker 1: So in the future that change could happen, but in any case...
Speaker 1: Some kind of a client would be necessary to enjoy different games. So with the evolution of technologies and the hardware that matches the times, providing that time of hardware with great value.
Speaker 1: And also regarding your second question.
Speaker 1: Even though the revenue is going up, why is the profits going down?
Speaker 1: revenue is going up why is the profits going down?
Speaker 1: the game development costs are going up and also
Speaker 1: From a technical standpoint, the acquisition of related costs...
Speaker 1: is
Speaker 1: increasing this term.
Speaker 1: The game development costs is going up because of the following reasons. The first party software development is going to be strengthened.
Speaker 1: and the life services will be launched.
Speaker 1: And intentionally we are enhancing this part.
Speaker 1: So that is why the expenses are increasing. That's all.
Speaker 2: Now, we'd like to move on to the next question.
Speaker 2: Asaka-san from Nikkei Business, please.
Speaker 2: Asaka from Nikkei Business, can you hear me? Yes, we can hear you.
Speaker 2: Thank you. About the decrease of operating cash flow. Earlier you said that the work in capital has increased.
Speaker 2: Can you elaborate more specifically what are the factors which resulted in increase in working capital? Secondly, is this impact temporary or...
Speaker 2: This will be continuing into this fiscal year, please.
Speaker 2: Thank you on that question. First, FI22 operating cash flow was low level and the reason for that and is it going to return to recover? The conclusion is it is going to recover next year and the details I would like to ask Hayakasa to explain. Thank you for your question. Your question about operating cash flow, FI23 the result?
Speaker 2: 415.5 billion yen, increasing working capital is mainly from the game business and image sense business increase in the inventory. Game business as I mentioned earlier, PlayStation 5 production, there are constraint in production.
Speaker 2: but the constraint was removed so we increased production which resulted in increased working capital. Secondly, the movie production cost and cash outflow is there with the production. Under COVID-19,
Speaker 2: the film production was not as much as possible in the past. And in production, marketing experience is incurred, but the theatrical release is not done. So, the cash flow outflow was not there during pandemic, but from the last fiscal year, normalization occurred. So, increase in working capital.
Speaker 2: That's all from me.
Speaker 5: me.
Speaker 4: So due to the time constraints, we would like to invite the last question.
Speaker 4: So please give us only one question due to the time constraint. And please push the address to the telephone.
Speaker 4: So I think we have no more questions. Therefore, we would like to conclude this Q&A session. Thank you very much. So excuse me, please wait.
Speaker 4: So I think we have no more questions. Therefore, we would like to conclude this Q&A session. Thank you very much. So excuse me, please wait. So from the freelance, we have a question
Speaker 4: Mr. Dawson, please. So are you able to join Mr. Dawson, please?
Speaker 5: So, Niesha, can you hear us? Is that successful? Yes.
Speaker 4: So we would like to conclude this Q&A session. So we are going to have the Q&A session with the investors and analysts from 4445. Thank you.
Speaker 5: So we are going to start this session with investors and analysts. Please wait for a while. Thank you.
Speaker 4: Thank you very much for waiting. Now we would like to start Q&A session with investors and analysts. So I'm going to serve as a moderator. My name is Jin-Ji from IR Group.
Speaker 4: And the respondents are the three people.
Speaker 4: And please refer to the instructions that have been already sent.
Speaker 4: And please limit two questions per person.
Speaker 4: Now, we would like to start Q&A session. If you have any questions, please push enter and after that, please push number one.
Speaker 4: from B-O-F-A Securities Hirakawa-Thamplees. Thank you very much. So this is Hirakawa from B-O-F-A Securities for the sensors and games. And today...
Speaker 4: So according to the presentation, ISS has risen to 53%. And therefore, so I think this kind of changing to the large scale has contributed to the improvement to 51%. And are you going to improve more? And also talking about the development road map.
Speaker 4: who was there for the game development costs. Those are the two questions. Thank you very much for the question, for the first, for the INSS.
Speaker 4: for the game development costs. Those are the two questions. Thank you very much for the question, for the INSS market share.
Speaker 4: So as I have mentioned in my presentation,
Speaker 4: So currently for the smartphone cameras and for the sensors.
Speaker 4: So the large scale centers and that's driving. So we are driving. And for the Chinese OME, and they're having a one inch sensors. However, thinking about that in the mid-term, we are able to increase our market share in different markets.
Speaker 4: So, Kasan, please.
Speaker 4: So talking about the development cost for the games and how much increase was there.
Speaker 4: So actually speaking, so HR costs and also the development costs.
Speaker 4: So, and also due to the increase of M&A cost was there. Talking about the HR costs and also the development costs.
Speaker 4: So for the within that the development cost in comparison to previous year we expect an increase however we are going to so I think we are able to offset the cost and for the M&A cost.
Speaker 4: So the budget increase for this year, for the full year, we are going to be consolidated and therefore that is 12.3 billion yen increase and therefore 65 billion yen.
Speaker 4: So talking about the sales cost and for the PS5, so we expect more sales of PS5 and therefore there will be the increase of that cost.
Speaker 5: Thank you very much.
Speaker 1: Moving on to the next question.
Speaker 1: From JP Morgan Securities, Ayatollah San, please.
Speaker 1: From JP Morgan Securities, Ayatollah San, please. Thank you.
Speaker 1: This is JP Morgan. I also have two questions. First question regarding games. This term the operating profit is 20 billion, is going to increase by 20 billion. On page 15 there are several items listed up.
Speaker 1: So can you elaborate a little more on them? Mainly there are three points. The hardware loss is going to improve.
Speaker 1: Right now the yen is $130 to the dollar. So is it based on that or are memory and parts cost going to go down?
Speaker 1: yen is 130 dollars to the dollar so is it based on that or our memory and parts uh cost going to go down so
Speaker 1: Are there any factors that would drive the improvements? And for the software, the first party software is going to decrease according to your forecast. How about third party software and other types? Thank you for SG&A.
Speaker 1: You talked about that just now. Last year...
Speaker 1: talked about that just now last year it was not really included.
Speaker 1: So what is the difference between this term and last term for games? Secondly, for image sensors.
Speaker 1: For fourth quarter and first quarter, if you compare the way for introduction was slowed down from your perspective, the smartphone market situation, depending on the regions or North America.
Speaker 1: depending on the models and channels. And if there's any periods that we'll see recoveries, please let us know. Thank you very much for your question. We're going, your first question, we're going to games this term.
Speaker 1: compared to before it will, the profits will go up by 20 billion and what is the breakdown of that.
Speaker 1: First of all, we are going to hardware. There is a forward exchange situation and also the material costs.
Speaker 1: is also a factor. So it's a combination.
Speaker 1: And with that we believe that the profit will improve from there. And also regarding the software, it's a slight increase, but basically it will be flat.
Speaker 1: The add-ons.
Speaker 1: The add-ons is not...
Speaker 1: going to particularly go down with in our assumption regarding the third party software maybe we are a little bit careful.
Speaker 1: In the first quarter, we will look at the performance of the first quarter and then review it once again. So that was about the software. And also, we will look at the performance of the first quarter and then review it once
Speaker 1: regarding how it is recognized from this term, for some software development costs will be listed up.
Speaker 1: The Life Services is a new service.
Speaker 1: that we will develop and provide and along with that
Speaker 1: The development process has been revisited and a part will be included in the capital.
Speaker 1: or it will be capitalized, that's all. And regarding INSS...
Speaker 1: excuse me, the smart phone market situation.
Speaker 1: Regarding China, we are not optimistic.
Speaker 1: If we look at the logistical inventory levels in the fourth quarter
Speaker 1: At around February it went down slightly, but in March it went up again.
Speaker 1: So we believe that we should not be optimistic.
Speaker 5: sonic
Speaker 1: camera sensors
Speaker 1: The inventory levels of our competitors are quite high.
Speaker 1: So we believe that the price will be going down rapidly. So again we are not optimistic about that.
Speaker 1: in North America and Asia, the markets there, especially for the high end.
Speaker 1: smartphones. In the fourth quarter.
Speaker 1: Compared to the fourth quarter, the situation has weakened slightly.
Speaker 1: So for FY23 that is our assumption.
Speaker 1: So overall, for the smartphone market, we believe that we should not be optimistic. So currently that is what we believe. Personally, I believe that the recovery would come in in FY24.
Speaker 2: That's all. Thank you very much, Mr. Aida.
Speaker 2: I'd like to move on to the next question.
Speaker 2: SMBC Nicole Securities, Katsuda-san, please. Thank you. Katsuda from SMBC Nicole Securities, two questions. The first question.
Speaker 2: Cash flow excluding finance service, you said 1.25 trillion operating cash flow. Investment cash flow, can you please explain as well?
Speaker 2: Semiconductors, CAPEX plan.
Speaker 2: You are exacting break as compared to last year so maybe the background is as you have explained. Other than that if there is key points about the cash flow please, investment cash flow and secondly related to the operating cash flow inventory.
Speaker 2: Q3, Q4, you maintained high level.
Speaker 2: This year the inventory control, how do you control inventory, procurement materials and forecast, what kind of level of inventory do you have in mind? These are my two questions.
Speaker 2: Thank you very much for your questions. Now about cash flow. Hayakawa will be responding.
Speaker 2: Thank you. About investment cash flow. Last fiscal year, investment cash flow, operating cash flow is 400 billion.
Speaker 2: cash flow has increased and the investment cash flow a bit more than 300 billion increase.
Speaker 2: has increased and the investment cash flow a bit more than 300 billion increase. They Gustav.
Speaker 2: We have acquisition of Banji Inc. increased and also CapEx was also increased which resulted in increase in investment cash flow. For this fiscal year, strategic investment of course for future growth will take opportunity. We are exploring opportunities. On the other hand, in view of the current market environment as Mr. Totek said in his presentation.
Speaker 2: CAPEX is reflected.
Speaker 2: And then inventory control. By each business segment there are ways of management. With regards to games, for the year end sales will be increasing in between the first half.
Speaker 2: and toward the end of the year this will be more normalized. And then ETNS this fiscal year or the last fiscal year the result there were some concerns but it ended up that we are able to control the inventory very well.
Speaker 2: So for this fiscal year likewise, we are going to have the conservative sales plan and appropriate level of inventory is to be maintained and controlled and we will continue to do so. I and SS logic and sensor strategic inventory will be reduced from the second quarter onwards by the young government and go beyond the chunk of GDP. And I'm putting both sides and I lifed the
Speaker 2: Then it is going to be appropriate level. We are calculating that it is appropriate level and we are going to bring it to the appropriate level. That's all from me. Thank you.
Speaker 2: it is going to be appropriate level. We are calculating that it is appropriate level and we are going to bring it to the appropriate level. That's all from me. Thank you. Thank you very much.
Speaker 4: So we'd like to move on to the next question from the city group. If you want to start with the first one, please.
Speaker 4: from Citigroup, so I have two questions. The first one is about OIBDA, you're going to start disclosure and therefore this is in comparison to OIBDA. So what is the difference?
Speaker 4: and therefore why you are going to start the disclosure of OIBDA? And also going forward, EBITDA and OIBDA, will there be a differences or rather a larger gap between the two? And if that is the case, please explain the logic.
Speaker 4: of revenue. However, what because I think you have listed according to the value of absolute value and therefore the sales is 20 billion. However, the absolute value in comparison to others is rather small.
Speaker 4: So is there any reason behind? Those are the two questions. Thank you very much for the question. For the first one, for the OIBDA disclosure, so in comparison to EBITDA because it doesn't include outside of the cells. I am there for the six segments. So outside of the cells,
Speaker 4: cells because we don't distribute the material and therefore looking at the segment or IBDA. So in comparison to what we get it's much similar to the EBITDA and whether the gap is going to increase that's not going to happen in the future.
Speaker 4: So for the time being, for three years, as an important KPI, the consolidated EBITDA
Speaker 4: So what begins the cumulative three-year figure so that happy outlined in the three-year business Plan however looking at each segment so therefore naturally So I think it is necessary to explain and therefore we at this
Speaker 4: timing, we decided to disclose the OIBDA and therefore, well because this will be on access with the external, in basis of the external communication. So talking about I-N-S-S, I-N-S-S.
Speaker 4: So with the increase of sales and the impact of the revenue is rather small. So that was a question.
Speaker 4: However, talking about this point, well because of course there will be an increase of revenue. However, well because with the mass production of the new product there will be more cost required. Therefore, the profitability for FY23.
Speaker 1: It's awesome, thank you very much.
Speaker 1: We only have a short time left, so the next question will be the last one.
Speaker 1: This is Nakane from Missile Hold Security. Thank you very much.
Speaker 1: This is Nakane from Miso Hoho Security. Thank you very much. I have two questions.
Speaker 1: I would like to understand the assumptions that you are using for this term and the ones that you did not explain. Regarding INDS, at the end of the fiscal year, the production capacity assumptions...
Speaker 1: I would like to understand the assumptions that you are using for this term and the ones that you did not explain. Regarding R&D it says at the end of the fiscal year the production capacity assumptions and the inventories are going to increase.
Speaker 1: What is the operations or movements after Q2? And Tulkasan talked about this earlier.
Speaker 1: You have the mid to low inventories. Until the last term, the mid to low was also something that you were going after proactively, and I'm sure that you still have some inventory left. Last term, this term.
Speaker 1: You will be focusing on the high end this term.
Speaker 1: For the remaining inventory, how about the risk of the valuation and is that also something that you have already reflected in? Is that something that we should not be concerned about? Second question is about H&S.
Speaker 1: The TV is improving and R&D costs are going to go up. The TV and audio, video and cameras, mobile and others.
Speaker 1: If we look at these categories, TV is going to go into the black from red. How is it going to improve or how is it going to deteriorate? It could be qualitative if you can.
Speaker 1: Thank you very much for the questions. Thank you very much.
Speaker 1: at the end of the fiscal year, what is the assumption for the production capacity regarding this? The next question is, what is the assumption for the production capacity regarding this?
Speaker 5: One moment, please.
Speaker 5: One moment please.
Speaker 5: One moment please.
Speaker 5: It's in the handouts.
Speaker 1: For FY22, in the fourth quarter average
Speaker 1: capacity for the facilities would be 133K per month and it will be 160K per month in terms of the introduction and for FY 23 first quarter.
Speaker 1: 137 K
Speaker 1: and then 127K for what will be fed in. And also the signup will also be sent out these.
Speaker 1: Focusing on the high end, that part is not going to change. Regarding the mid to low inventory valuation reduction risk, as of now, we don't think that we will go to that point where we would have to reduce the valuation. That is why we need topox praying the champion displays an salary related to the goal. We all need to cut on the high end if you don't have cash and all be careful, and sometimes
Speaker 1: So that's the overall big picture. And also regarding ETS.
Speaker 1: in each category are you going to be profits
Speaker 1: to talk about this qualitatively for the digital cameras.
Speaker 1: And FY23 the revenue will go up and the profits will slightly go down.
Speaker 1: And also for TVs.
Speaker 1: The revenue will go down significantly and the profitability situation will improve.
Speaker 1: In the latter half of last year we struggled so this term is a conservative sales situation and also for other categories headphones, the revenue will go down, profits will go up.
the high-value models.
Added value models is where we're going to focus on. And also for mobile, the revenues will go down and profitability situation will improve. The units will be narrowed down and fixed costs will go down and we will try to improve profitability. For the different categories, on a qualitative basis, that is what.