Q3 2025 Sony Group Corp Earnings Call
I'll be serving as M Street in D C from PR.
Speaker Change: First I'd like to introduce the speakers.
Speaker Change: Representative corporate Executive Officer, Chairman and CEO.
Speaker Change: Okay.
Speaker Change: Twist to become representative corporate Executive Officer, and Chairman effective April 1st change it'll you'll see that.
Speaker Change: Turning to representative corporate Executive Officer, President COO and CFO.
Speaker Change: To become representative corporate Executive Officer, President and CEO.
Speaker Change: April 1st he Dokie total key.
Speaker Change: Senior Vice President corporate planning and control lead of group diversity equity and inclusion support for financial services business and Entertainment area now me Matsuoka.
Speaker Change: Senior Vice President in charge of finance and IR, so that he called high Def color.
Speaker Change: Corporate Executive Officer, and CFO, Sony Financial Group cadre Szeto Yamato.
Speaker Change: Okay.
Speaker Change: First.
Speaker Change: Mr. Yoshida will say a few words, followed by an explanation of the earnings results for the third quarter of the fiscal year ending March.
Speaker Change: 31st 2025, and full year forecast by Mr. Total gave me some higher caught me as much silicone Mr. Yamanaka, and then we will move on to the Q&A session. After the QA session there'll be a photo session for the media with Mr. Yoshida and Mr. Total key the entire event is scheduled to last about 18 minutes.
Mr. Yoshida: Mr. Yoshida please.
Mr. Yoshida: Hello, everyone.
Mr. Yoshida: Recently announced our new management structure effective April the first.
Speaker Change: He will keep total cable will be appointed CEO of Sony Group Corporation based on his achievements until now and from the perspective of future long term growth I'm convinced that total key is ideally equipped to be the next CEO.
Mr. Yoshida: The board is unanimous agreement.
Mr. Yoshida: Okay.
Mr. Yoshida: Today I wanted to take this opportunity to join you and share a few words.
Mr. Yoshida: Please go ahead.
Speaker Change: Taking a brief look back since returning to Sony from that ISP soon it together with total K in December 2013.
I served as CFO for four years, and then seal for seven is.
Speaker Change: I would like to once again express my gratitude to you all for your feedback, including your encouragement and critical analysis throughout this period.
Speaker Change: I believe that Sony with merchant by the capital markets.
Speaker Change: Okay.
Speaker Change: During my time as CFO I, often spoke within the company about the moving from internal mineralization.
Speaker Change: External accountability.
Speaker Change: The aim was to verify the effectiveness of our management initiatives by asking ourselves whether they're explainable.
Speaker Change: Yes.
Speaker Change: There is a great deal that business leaders can learn from dialog with the media analysts and investors and I myself have learned much.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: If I were to mention one thing from my siblings is SCO it would be our purpose that I defined in my first year.
Speaker Change: The keyword within this is condo inherited from my predecessor, Kudzu he right.
Speaker Change: I think of our purpose as a promise it is a promise that we make to each and every employee.
Speaker Change: It is based on the belief that you are the driving force behind Kendall.
Speaker Change: I Trust that most Sony group employees think that it is smooth yoshida, who achieved something but rather we are the ones that did it and we are the ones that will continue to do it.
Speaker Change: I believe that this kind of intrinsic strengths is vital for connecting our purpose to profit.
Speaker Change: Going forward I myself, alongside our employees intend to be part of the driving force behind Kendall and offer my support to the <unk> and the new management team that is all from myself with that I would like to handover to total Keith.
Okay.
Keith: Thank you very much I am to Turkey, and no assigned as the President CEO.
Speaker Change: See you.
And I look forward to taking over the company and feature a yoshida have greatly added to value to us.
Hughes and two working to create new value by realizing a creative entertainment division and dredging Sony's evolution and further growth.
Now I will explain the content as shown here and then I will give a general summary at the end.
Yes.
Our first speaker here.
I'm. Please thank you.
Sure.
The consolidated sales, excluding the financial services segment for the quarter increased 7% compared to the same quarter of the previous fiscal year.
Speaker Change: Our year on year to three two years, because $95 7 billion and operating income increased 10% to 423 billion.
Speaker Change: Consolidated sales, including the financial services segment increased 18% year on year, two four trillion $409 6 billion operating income increased 1% to $469 3 billion a record high for the third quarter.
Speaker Change: And net income increased 3% to $373 7 billion yen.
Speaker Change: The results by segment for the quarter are shown here.
Speaker Change: Next I will explain a consolidated results forecast for FY 'twenty for.
Speaker Change: Consolidated sales, excluding the financial services segment have been upwardly revised slightly from the previous focus to treat a 900 billion operating income has been upwardly revised.
2% to once you have 190 billion in operating cash flow has been upwardly revised 15%, mainly due to improvements in working capital to 1600 60 billion Union.
Speaker Change: Consolidated sales, including the financial services segment have been upwardly revised 4% from the previous forecast to 13, three or 200 billion operating income has been upwardly revised 2% to one three and 235 billion and net income has been upwardly revised 10% to Ontario.
Speaker Change: ATV Union the full year forecast by segment is shown here.
Speaker Change: No.
Move on to an explanation of this stage two each business. The first is our games in network services.
Speaker Change: For the quarter increased 16% year on year to one trillion six months $82 3 billion, primarily due to the increased sales of hardware and third party software.
Although we had the big hit Marvel Spider Man two in the same quarter of the previous fiscal year operating income increased 37% year on year to $118 1 billion a record high for the third quarter in the segment, primarily due to the impact of higher revenue from network.
Speaker Change: Services, and third party software as well as improve profitability of hardware.
Promotion expenses, you need to Playstation five one which the promotion was implemented to in the current quarter decreased approximately 20% year on year and we think that we are implementing an optimal sales program given the market environment.
Speaker Change: Managing P is five inventory at an appropriate level with inventory at the end of December decreasing 46% compared to the same months over the previous year significantly contributing to an improvement in cash flow.
Taking into account the result of.
Speaker Change: For the quarter, we have revised our board.
Speaker Change: Our full year forecast for sales by 3% to four three or 610 billion and operating income by 7% to 380 billion compared with our previous forecast.
Speaker Change: The number of monthly active users and they use across Playstation platforms in December increased 5% compared to the same month of the previous year, reaching 129 million account the highest number in P. S. History total playtime also increased 2% year on year.
Speaker Change: Marking the seventh consecutive quarter year on year growth.
Speaker Change: More than 40% of users who purchased appears flat during the quarter, where our new users.
Speaker Change: Combined with a moderation in the decrease in the number of peers for active users. This has contributed substantially to the increase of amey use.
Do you have to be unit sales of PS five from launch until the end of December are essentially the same level as you accumulate to be unit sales of P is for the same period of time since launch even though P. S. Five had a higher price.
Speaker Change: Furthermore, Emmy use after the same amount of time has passed since launch have increased significantly by approximately 1.4 times. This shows that the user base for the P. S platform has significantly expanded one P. S fourth generation due to the P. S wireless backhaul.
<unk> ability in our various user engagement initiatives also Playstation plus.
Speaker Change: Revenue in the quarter increased 20% year on year on a us dollar basis, primarily due to an increase in average revenue per user a P are you mainly due to a shift to a higher tiers of service and the impact of price revisions in this way in the momentum of the platform business is currently strong and we are.
Expect to see stable earnings growth going forward.
Last November we released a beta version of our cloud streaming feature on the P. S.
Porto remote player.
This means that P. S plus premium subscribers can now play over 120 P. S. Fab game titles on the P. S border stream directly from cloud service without going through a P. S five console.
Speaker Change: By leveraging the lessons from the beta test, we aim to further improve the streaming or gaming user experience. So users can enjoy peace games anytime anywhere and even more easily.
Speaker Change: At the game Awards 'twenty 'twenty four held on December 13th 2024 of our first party title Astro bought one full categories, including game of the year and based on the game the most of any title.
Speaker Change: In addition, the live service games.
Speaker Change: He'll driver divers to released in February last year won the best ongoing game in this mode to play a game of awards.
The fact that titles in general we are aiming to expand in the future including titles for families and diverse service games have you see to visa woos is a major stride towards building a broader titled portfolio.
Speaker Change: In addition to the awards it received a divers to lodge update.
Speaker Change: Elements of tyranny release in December 'twenty 'twenty, four has been well received and user engagement has once again increased significantly.
Speaker Change: Next fiscal year, we plan to release games, such as the major title goes to the Ot and the sequel to the popular Dino Desert trying to and we expect even further expansion in earnings from first party software.
Speaker Change: Next is the music segment.
Speaker Change: Sales for the quarter increased 14% year on year to $481 7 billion yen, primarily due to higher streaming revenue and the impact of the consolidation of E plus pink and visual media and platform.
Operating income increased 28% year on year to $97 4 billion yen, mainly due to the impact of the increased sales.
Speaker Change: On a U S dollar basis streaming revenues for the quarter increased 9% year on year, including a one time factor in recorded music and 8% year on year in music publishing.
Speaker Change: We have revised upward our full year forecast for sales by 3% to one trillion 790 billion yen.
Speaker Change: And operating income by 3% to 340 billion yen.
Speaker Change: During the quarter New albums from artists such as Tyler the creator and <unk> became hits.
Speaker Change: Recently banned bunnies, new album release from Remus Entertainment on January five 2025 has become a huge hit capturing number one on the available 200, and making him the fastest male artist to reach 1 billion streams on Spotify.
Speaker Change: At the 67th Grammy Awards held on February <unk> 2025 beyond says Cowboy Carter won the award for album of the.
Speaker Change: Beyond say, who has been nominated for 19 nine Grammys over the course of her career. The most of any artist was nominated 11 categories. At this time and she won three categories, including album of the year.
Speaker Change: The rise of streaming is creating more opportunities for music from local artists to become global hits.
Speaker Change: Sony Music group is working to enhance local repertoire by discovering and nurturing artists and songwriters.
Speaker Change: Locations in emerging markets as well as by building and strengthening relationships with independent labels and artists in various regions through the Orchard and AWOL.
Speaker Change: In addition in rapidly growing Latin America in India, we have further solidified our leading positions through strategic investments in leading labels and music catalogs in each region such as from Libra in Brazil, remiss in Puerto Rico, and Eros in India.
Speaker Change: Furthermore, in countries and territories that are expected to grow over the midterm, we have acquired leading local labels in Greece, and the Czech Republic, and Sony Music publishing has established a base in Thailand.
Speaker Change: Next is the pictures segment.
Speaker Change: Sales for the quarter increased 9% year on year to $398 2 billion yen, primarily due to higher revenue from theatrical releases such as Vietnam, The last dance and the impact of foreign exchange rates.
Speaker Change: Operating income decreased 18% year on year to 34 billion yen, primarily due to an increase in marketing costs for theatrical releases.
Speaker Change: The full year forecast is unchanged from the previous forecast.
Speaker Change: At this point in time, we expect the impact on the results of the segment from the wildfires in California in the U S to be minor.
Speaker Change: In motion Pictures, there is still some impact of the strikes such as postponement.
Speaker Change: To the fiscal year, ending March 31st 2027 of the theatrical releases of our next Spider Man and Jumanji movies. However production activity is recovering in television productions.
Speaker Change: <unk> of new shows which was impacted by the strikes has almost stabilized.
Speaker Change: At crunchy role streaming of the second season of the anime series solo leveling produced by any Plex began last month and it has become a huge hit in many countries and territories.
Speaker Change: Additionally, going forward, we aim to further strengthen our engagement with anime fans around the world, including through the scheduled release of Crunchy role manga Digital Comics service for paid subscribers in North America.
Speaker Change: Now I'd like to explain our strategic collaboration with Cuddle, Koa, which expands our <unk> III entertainment businesses.
Speaker Change: We have collaborated with Caddo color on various projects in the past, but following the conclusion of our capital and business Alliance agreement in December.
Speaker Change: And the assumption of a third party allotment of new shares in January we have become its largest shareholder.
Speaker Change: Through this alliance the leadership of both companies are even more committed to promoting collaboration and we aim to create new value in various entertainment fields by combining Caddo kawa strengths in creating original IP with our technologies and global expansion capabilities.
Speaker Change: Next is the <unk> and S segment sales for the quarter decreased 4% year on year to $704 5 billion yen, primarily due to a decrease in unit sales of televisions, while operating income remained essentially flat at $77 1 billion yen before.
Speaker Change: The full year forecast is unchanged from the previous forecast.
Speaker Change: And selling season trended generally as expected across the segment compared to the year end selling season of the previous fiscal year.
Speaker Change: Sales of TV, and smartphones, which are not pursuing scale and focus on high value added products decreased but sales in other categories were essentially flat.
Speaker Change: Even the imaging market, where there were concerns of a slowdown, particularly in China remained relatively stable and the market scale on a unit basis for the quarter increased slightly year on year as was the case in the second quarter.
Speaker Change: The sales and profit in our imaging business decreased slightly year on year. We think this was mainly due to our launching two new products in the volume zone of full frame cameras, including the Alpha seven CE Mark two in the same quarter of the previous fiscal year.
Speaker Change: Inventory as of the end of December for the entire segment increased slightly from the same month of the previous year to 350 billion yen. It is being controlled at an appropriate level.
Assuming that the operating environment in this segment will remain severe into next fiscal year and beyond.
Speaker Change: We intend to implement further fixed cost reduction measures in the fourth quarter in order to increase resilience and strengthen our profit structure expenses for this are reflected in the current forecast.
Speaker Change: Since 2012, the market for interchangeable lens digital cameras.
Speaker Change: Has seen the single lens reflex camera markets shrink at a faster rate than the growth of the mirrorless camera market, which is driven by Sony.
Speaker Change: As a result of the market as a whole continued its trend towards shrinkage until 2020, when the COVID-19 pandemic was also a factor.
Speaker Change: Since 2020, the market has entered a stable re expansion phase and by 2024, it recovered to a level approaching the peak in 2012 on sales amount basis.
Speaker Change: In addition, the interchangeable lens market is continuing to grow steadily with the combined market size for cameras and lenses exceeding one trillion 200 billion yen in 2024.
Speaker Change: Imaging market has a limited number of players because of it requires the integration of multiple advanced technologies, such as optics, mechatronics and image processing and since we have image sensors and <unk> Communications technology.
Speaker Change: We expect to generate high market share and profitability by continuing to offer products that meet the needs of creators.
Speaker Change: In addition to the stable sales growth of camera bodies, the creation of new markets in a business where recurring revenue can be expected steadily expanding with the launch of a variety of lenses that expand the possibilities for creative expression in our solutions and services that add value through software.
Speaker Change: Next is I NSS segment sales for the quarter were essentially flat year on year at 509 billion yen, primarily due to a decrease in sales of mobile image sensors offsetting the impact of foreign exchange rates. Despite the positive impact of foreign exchange rates.
Speaker Change: Operating incomes.
Speaker Change: <unk> income decreased 2% year on year to 97.5 billion yen, primarily due to increased manufacturing costs and the impact of the decreased sales be up slightly to increase our full year sales forecast from the previous forecast to one trillion. Several hundred 90 billion yen, while the forecast for operating income is unchanged.
Speaker Change: The global smartphone market continues to slowly recover.
Speaker Change: In the quarter and mobile sensor sales were essentially in line with our expectations sales for the current quarter decreased year on year, primarily due to a shift in sales from the second to the third quarter in the previous fiscal year, resulting from the production yield issue on your mobile sensor brought.
Speaker Change: However, cumulative sales for the nine months through the third quarter increased a significant 15% compared to the same period of the previous fiscal year. Furthermore, the production yields on the same production product during the current quarter improved beyond the initial plan and the forecast as of November reaching.
Speaker Change: Nearly normal levels.
Speaker Change: The average annual growth rate for the mobile sensor sales from the fiscal year ended March 31st 2022.
Speaker Change: The year ending March 31, 2025 is expected to be 23% on an basis and 11% on a U S. Dollar basis. This steady growth is mainly due to rising unit prices, resulting from larger central arises and higher value added mobiles and we believe that we can achieve similar level.
Speaker Change: Sales growth on a us dollar basis in the fiscal year, ending March 31, 2026 regarding automotive sensors, a slowdown in the growth of the electric vehicle market, especially in the U S and Europe has an impact, but our expansion of our customer base and improvement in our product performance to date have been successful.
Speaker Change: And the strong demand will he be manufacturing in E, China as well as shifts towards higher pixel count sensors have expanded our business, although the proportion of automotive sensor sales too okay.
Speaker Change: <unk> segment sales are small we expect high growth going forward now I would like to explain our response to tariff policy in order to respond to various geographical risk in our G and S. E. T N S. N I N S. This segment, which handle hardware over the past few years, we have been working to duplicate our supply.
Speaker Change: And increase their flexibility. Furthermore, we have been preparing recently by doing such things as stockpiling, a certain level of strategic inventory in the U S and we expect expect the impact on our.
Speaker Change: Our financial performance this year.
Speaker Change: Additionally, as import tariffs that have been implemented or whose consideration has been announced at this point in time is minor to be minor.
Speaker Change: We intend to continue to respond flexibly and promptly to changing circumstances to implement at the appropriate time additional damages that we are preparing in order to be a minimal impact on our business and the earnings loss.
Speaker Change: Just have a segment, we announced a service revenue for the quarter increased $206 7 billion yen year on year to $718 5 billion yen, primarily due to an increase in gains on investment at Sony Life operating income decreased 34, 9 billion year on year to 46.4 billion yen, primarily due to the absence.
Rob Sinnott: Rob Sinnott.
Rob Sinnott: Does gains related to Mark to fluctuation are recorded in the same quarter of the previous fiscal year at Sony life.
Speaker Change: Insurance services, our results, which indicate the earnings potential of Sony life decreased 11% year on year. During the current quarter. They were $41 3 billion yen, but they are trended in a stable the money for the nine months through the third quarter decreasing 4% compared to the.
Speaker Change: The same period of the previous fiscal year. Moreover, Saudi life's new policy amount for the current fiscal year is increasing smoothly at 12% year on year on a cumulative basis through the third quarter taking into account the results of the quarter. We have increased our full fiscal year forecast for financial services revenue 300.
Speaker Change: 90 billion yen to one trillion 300 billion yen the operating income forecast remains unchanged from the previous forecast.
Speaker Change: I will now speak about the financial initiatives at Sony life assets, such as bonds held on the balance sheet.
Speaker Change: Seed insurance liabilities resulted in an over hedge situation. This situation means that rising interest rates will result in a decrease in net assets. So we are working to mitigate the situation this fiscal year.
Speaker Change: Specifically, we began selling a portion of the bonds, we hold and trading derivatives through the third quarter and we are considering selling additional bonds in the fourth quarter.
The full year results forecast incorporates the offsetting the losses from these bond sales on the upside to profit from the market fluctuations through the time the current forecast was determined.
Speaker Change: Three of those.
Speaker Change: These airports.
Speaker Change: We intend to continue to spend it.
Speaker Change: Steadily improve our financial position, while closely monitoring the balance with the profitability preparing for the puzzle the spinoff and listing of Saudi Financial Group, Inc. Scheduled for October this year are progressing smoothly and we plan to explain our business strategy and listing structure in.
Speaker Change: Late may.
Speaker Change: In closing I will make some remarks.
Speaker Change: <unk> completed the third quarter of the fiscal year ending March 31, 2025, the first year of our fish Midrange plan. We believe we are making steady progress towards achieving our key performance indicators for the Sony Group set out in the plant are in.
Speaker Change: In our plant in particular, we view it as possibly that the G. N N S. N I M. S N, which are driving the profit growth have both been able to significantly increase the profit since our last fiscal year. Furthermore, in regard to the enhancement of shareholder returns, which we are pursuing in office midrange plan, we complete.
Speaker Change: <unk> completed the repurchase of the maximum 250 billion yen of our own share decided in may of.
Speaker Change: Last year by November. So today, we have established a new facility to repurchase maximum 50 billion NIM with a deadline of may of this year, we intend to continue to implement a repurchase opportunity is taking into account the state of settings that share price level and this investment opportunities. That's all for me. So therefore speakers have.
Speaker Change: Even the financial results.
Speaker Change: Okay.
Speaker Change: Now I would like to entertain questions from the media and then followed by the Q&A by analysts investors and 20 minutes for each the Q&A session.
Speaker Change: Some people who registered online.
Speaker Change: Two questions. The first please click the button for the revenue participation so you're ready to participate.
Speaker Change: And as to the way of a Christmas we have given you some new information beforehand.
Speaker Change: The first who like to entertain questions from the media.
There's some people who are participating online please click button for a hand, raising on analytics screen, those India homa, who like to ask a question. Please raise your hand.
Speaker Change: And then of course, the person in charge of microphone and bring that to you and we like to ask kind of lead to that.
Speaker Change: You would ask only two questions for capstone. So now the floor is open to entertain questions.
Speaker Change: Yeah.
Speaker Change: The person in the front row over the Central block. Please start asking the question.
Speaker Change: I am sorry to Muni bond case, I assume I have two questions. First question is about that such that there isn't and it's one for yourself and the other in photo books you Stefan has assumed the position of CEO seven years ago, and many M. N as were implemented by Mr. Schuster and financial service was decide.
Speaker Change: To be split certainly addressed so what how do you value the previous state of this business portfolio structure and the second one is a future for years you guys have to talk to each other channel that Dean Sunny what's gonna roll are we like to play we didn't sunny.
Speaker Change: And maybe a future carrier plan Oh ideas in the future to the extent I have a sort of an abstract question that is to say as a C. O. The company what you have to achieve in the mid range plan there the numbers of targets, but beyond that what kind of a company that you liked and nurture the Sony to become until you.
Speaker Change: The ambition sort of about the future of saying. Thank you for your two parts of questions as to the first part the progression of course that you told us about the portfolio of how specifically I evaluate and assess it thanks for the question.
Speaker Change: The portfolio.
Speaker Change: The management.
Speaker Change: Oh 2021.
Speaker Change: Is Sony Group Company. It was launched and then so that was a key point.
Speaker Change: Yeah.
Speaker Change: And there are two purposes for that one is the group's synergy has to be promoted further second purpose is it portfolio management that should be.
Speaker Change: Done a more carefully and perfectly.
Speaker Change: Hey, well thought and there's the progress achieved that total zelle will play a central role, including other members are the leaders to consider and punish this further my future role as a chairperson of goods that I would like to support that.
Speaker Change: It took turns team.
Speaker Change: That's all for me thank you.
Speaker Change: My future aim and ambition in the future.
Speaker Change: Yes.
Speaker Change: This is.
Speaker Change: The idea about the Entertainment Division I already told you about this.
Speaker Change: But the way you the idea of stage the reactor achieved 10 years from now and that is our idea of a stage we liked it cheap.
Speaker Change: Sure.
Speaker Change: Against our vision to what extent can we make progress and that's a challenging thing that I would like to England to get as close as possible to the vision what are the most important driver.
Speaker Change: Booster human resource diversity, we have in business diversity, we have we have a diverse human resources and human this is sick tunes and then by emerging that we can create something brand new I believe in that and I would like to really try that and then achieved this the vision. So that is our strongest.
Speaker Change: To which I would like to achieve thank you.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Let's move on to the next question.
Speaker Change: Yes.
Speaker Change: The first row in this block.
Speaker Change: I think I came from Toyota.
Speaker Change: Two questions as well so based on total designs as well, there's some overlap with that but in 2018 when Nielsen the posting.
Speaker Change: You'll see the fun when you have a diverse for people and beverage business and you said the issue is can you make best use of that so selection focus.
Speaker Change: Something that many companies have pursued but in management.
Speaker Change: Aiming for diversity, what does that mean, what's the significance of that and thinking about the significance of what you have achieved that's my first question second question goes to Mr thought okay.
Speaker Change: The president CEO and CFO to President Oh presence your CFO to president and CEO. So no I think.
Speaker Change: You are moving from execution to management.
Speaker Change: So what do you think is going to be the difference in your role changing your ROE and you have now.
Speaker Change: Business, CEO or a chief officer, what's the significance of that the new posts that you're going to establish.
Speaker Change: So making you for diversity.
Speaker Change: Well into the 20th century already.
Speaker Change: We think that we have for guaranteed two major businesses.
Speaker Change: The.
Speaker Change: Capitalize on diversity, one is Playstation game.
Speaker Change: Business sort of music and electronics.
Speaker Change: Synergy was what led to that.
Speaker Change: Then the other one anime.
Speaker Change: The middle of 19 nineties.
Speaker Change: <unk>.
Speaker Change: So Sony Pictures, Japan.
Speaker Change: And Sony Music, there was synergy between those two that led to that.
Speaker Change: And so on.
Speaker Change: The total is leadership in EMEA and James I mean, they are very close.
Speaker Change: So that.
Speaker Change: That'll be the engagement the platform. So the diversity that we have we're going to try to convert that more to value. That's the action that he is thinking that's how I see it.
Speaker Change: So for myself.
Speaker Change: So to become CEO.
Speaker Change: Hi.
Speaker Change: Thoughts on that.
Speaker Change: So I'm going to be the chief Executive officer, so per.
Speaker Change: Irresponsible of management of the company, so I feel that the a big responsibility.
Speaker Change: And Mr. Yoshida they have created this value one to further expand on that make it bigger.
Speaker Change: So I have got strong determination to achieve that that's what I like to tell you.
Speaker Change: And the significance of having chief officer.
Speaker Change: At the head office as much as possible.
Speaker Change: One to simplify the layers. So we wanted to de layering.
Speaker Change: So we have a transparent and open and efficient and lean head office.
Speaker Change: That's what we intend and so for that we did this reorganization and also one more thing about the name.
Speaker Change: Well as much as possible. We wanted something that is easy to understand not just in Japan, but globally, because we have a lot of our business.
Speaker Change: Business overseas is much larger than Japan. So you wanted the title that's easy to understand globally and so that's why we changed the name.
Speaker Change: And in terms of business here.
Speaker Change: The current business what drives that is our CEO and each business segment.
Speaker Change: So.
Speaker Change: For the business segments that we want to we wanted to show the respect and support from head office and we wanted to show how we're going to provide that support and how we're going to behave so.
Speaker Change: That is why we established this business here.
Okay.
Speaker Change: So now we would like to move onto the next question.
Speaker Change: So in the middle.
Speaker Change: The white jacket, the person and white jacket. Please.
Speaker Change: Yes, you got that from NHK.
Speaker Change: And my question is to to question two total gives some from.
Speaker Change: From April.
Speaker Change: Will become CEO.
Speaker Change: And under such circumstances. Your company has grown significantly over the last years, but what do you think is that challenge still ahead of you.
Speaker Change: And how you would like to take that challenge.
Speaker Change: And so in M. L. P. One eight trillion and for the growths are the investment so as a CEO what is your policy for investment to the extent that you can disclose to us. Thank you. So let me answer two questions.
Speaker Change: It is still lacking what is a challenge there are many as a matter of fact and of course, there is no company organization, where there is no challenge and but roughly speaking.
Speaker Change: On our part we have.
Speaker Change: Play the game globally that is the nature of our company, it's only therefore compared.
Speaker Change: Compared to topnotch player globally in terms of scale or in terms of profitability and we have not reached the top level, yet and therefore.
Speaker Change: Whether we are in a top position globally. There are still many things are which are need to be improved.
Speaker Change: Improved alu, our headquarters in Japan, and there are many Japanese and headquarters and so in order to make it a truly global.
Speaker Change: I believe that is very important for us to Ah that change.
Speaker Change: And the second point is with regard to the strategic investment during the the midrange plan.
Speaker Change: And how we should proceed with that and the policy of investments has not.
Speaker Change: I will not.
Speaker Change: <unk> be significantly different from what they have had and flow of the company for asset.
Speaker Change: Yeah.
Speaker Change: Although we have a capability to boost the value and of course, we have the great companies are are we have a great asset and it is important to us.
Speaker Change: Strategy to acquire them, but the point is whether we are able to further add value through those acquisitions.
Speaker Change: And the second point is where they'll be able to set the price properly.
Speaker Change: And the way that we have the capability to evaluate that.
Speaker Change: Ah that capability and set the price based on that I think those are very important to point.
Speaker Change: Yeah, we'd like to entertain next question.
Speaker Change: Central block.
Speaker Change: The second row, and personal wearing them Brown jacket. Please.
Speaker Change: Thank you Nishu.
Speaker Change: As a reporter I have two questions first point the questions and requests to Mr. Yoshida Sofa you investment plan was presented in total and also cover that too.
Speaker Change: The CEO of the company you have them.
Speaker Change: Prepare their investment plans for each one did you.
Speaker Change: You voted to high and then the second question is to Mr. Turkey as of now that are in your in the management, but really there are some things, which are going well, but some things are a negative areas and in some cases. Some of you must have decided to divest or image that make a big change of a restructuring you might have to make that difficult decision as well.
Speaker Change: But by when do you make such a bold decision and in which way are you intend to do that at present I'd like to hear.
Speaker Change: What do you think about those thank you.
Speaker Change: Thank you for your question.
Speaker Change: The investment plan.
Speaker Change: I highly appreciate the certain area well the.
Speaker Change: Most impressively investment for me was for me well force who needs a management is that less than in 2018 EMI music publishing.
Speaker Change: Acquisition that acquisition was most impressive to me full billion dollar investment was made.
Speaker Change: But anyway the.
Speaker Change: Negotiation was mostly done by Mr. Tollkeeper.
Speaker Change: Personally the music of crews are is that the original starting point for Sony Company named Sony Okay. It came from the lagging where the Sonus doesn't mean between yourself and tape recorder and walkman and C. D. Those are the products. We develop sound was a basis origin to deliver sand that's how we developed our products on there.
Speaker Change: And Cvs Sony created in N. Dean 68, and then that is where we got closer to I just had to get closer to this and we learned that in 2018 EMI music publishing the acquisition and it was like M&A based upon our origin.
Speaker Change: And then from then on a go through creation shift where entertainment focused activity was then and there.
Speaker Change: We made a big decision from that time alone I think and to respond to your second question, how do I value the current portfolio well.
Speaker Change: For me, who sometime soon and I look at the portfolio not the static it's a more dynamic that's how you perceive the portfolio structure.
Speaker Change: It's not something you implement something something in London, It's a continuous effort continuously monitor so for the entire portfolio some area might not be doing well in certain segments, you might need to make a bold change then without hesitation I implement that change.
Speaker Change: But the thing I stood the bull <unk>.
Speaker Change: Structural portfolio in October we will make a decision on the spinoff of financial segment, and when we announced that the.
Speaker Change: Thing on financial sector I explained the.
Speaker Change: Person who'll be spinoff or who would you spend on the both sides and understand that it's necessary spinoff for the future growth as did the portfolio as did a major restructuring might be the basic criteria for decision, making another as well.
Speaker Change: We should keep holding that the that the nurture more growth or maybe other people shouldn't manage and then Andy that's the that segment might grow better then we have to revise drastically and so to that kind of goes Oh criteria. If you do nothing than Investor Tonight Scrutinize.
And they might come to some critical comments as well if you do nothing.
Speaker Change: So if possible.
Speaker Change: Re ourselves of course would like to make decision.
Speaker Change: And to take an action in advance and take a proactive action features more ideal so that kind of revision and restructuring continues to be considered and implemented.
Speaker Change: Okay.
Speaker Change: Next question.
Speaker Change: To the far right.
Speaker Change: Second from the front.
Speaker Change: The person in block please.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Critical from Bloomberg.
Speaker Change: Question two to focus on two questions.
Speaker Change: So about two responding to additional tariff you said you have strategic inventory that you're building up any other measures.
Speaker Change: In November you talked about how to do the shipment you might change with things that produce Oh, and you might have a price pass through you have to organize those ideas you said any products, where you actually implemented that those ideas.
Speaker Change: That's one question.
Speaker Change: So this is something I wanted to ask based on what you said so in order to compete globally headquarter.
Speaker Change: Shifting to someplace else other than Japan, do you have such idea.
Speaker Change: So first question.
Speaker Change: In terms of responding to tariffs.
Speaker Change: I said the other day.
Speaker Change: So I think we have those choices to that.
Speaker Change: Claims so we are making preparations we haven't made a drastic changes.
Speaker Change: In terms of how we respond.
Speaker Change: Second about us.
Mr. Yoshida: Placing the headquarters outside of Japan that possibility is Neal we have no such idea.
Mr. Yoshida: Dow Jones is a really nice place.
Mr. Yoshida: So we don't see.
Mr. Yoshida: Are you any inconvenience, though I think it will stay the same.
Mr. Yoshida: Yeah.
Mr. Yoshida: Time.
Mr. Yoshida: Becomes short so the next question will be the last question.
Mr. Yoshida: Yes.
Mr. Yoshida: Yes.
Mr. Yoshida: The person in gray.
Mr. Yoshida: And suit please.
Mr. Yoshida: Tanaka from Asahi and my question is to you should ask them two questions and Mr. Yoshida.
Speaker Change: In 2013, when you returned from Sarnia to Sony.
Mr. Yoshida: And when you return to Sony.
Mr. Yoshida: There was a deficit and the management was not as Sally very healthy and so as a CFO for instance, the sale of vial and you have to reduce the number of employees. I think you were involved in restructuring of Sony then and.
Mr. Yoshida: And as it at that point, what was your thought to make those decisions and the restructuring I'm sure that that has led to the current the garage space.
Mr. Yoshida: The look back at that situation and then how do you reflect your action of a restructuring then and the second is when you are CEO.
Mr. Yoshida: You try to put the emphasis on entertainment area. So looking from outside Sony has changed significantly so as C O O.
Mr. Yoshida: What is your impression about what you have achieved.
Mr. Yoshida: Thank you since I'm appointed let me answer when I returned from Sonet. It was December 2013, I returned to Sony was total Kisan and early phase after I returned.
Mr. Yoshida: I decided to withdraw from P. C vial and also decided to spin off T V.
Mr. Yoshida: To separate business of T V and I made a proposal to both together it was total caisson.
Mr. Yoshida: And I think it is common between us.
Mr. Yoshida: That the basic mindset then was that.
Mr. Yoshida: And we're not happy to be M aid by Sony but of course, the Sony took care of us.
Mr. Yoshida: So we wanted to contribute to Sony indebted to Sony very much.
Mr. Yoshida: So after a impeachment that there was a there are a lot of airports for that.
Mr. Yoshida: And so the total key is always in charge of our mobile business and the he was involved in restructuring and that improvement has led to the kinds of growth when I was CEO.
Mr. Yoshida: Although of course entertainment, let's emphasize that Sony has changed thank you very much for your comment and.
Mr. Yoshida: So focusing on entertainment.
Mr. Yoshida: It itself is related to come though that was a the put forced by the he writes on my predicts that in 'twenty 12, and I fully agree with him. It was old story 2005.
Mr. Yoshida: I mean, I became the president of filling it.
Mr. Yoshida: Tony Communication network was original name, but I changed it has shown it entertainment.
Mr. Yoshida: And my thinking than it was in 21st century that was the era of entertainment and the major bearer of that trend is not worse network. So I took challenge together with a total guest sun for that purpose.
Mr. Yoshida: So.
Mr. Yoshida: The focus on entertainment.
Mr. Yoshida: I fully agree with the horizon than that.
Mr. Yoshida: What's the background.
Mr. Yoshida: I have fully achieved my purpose of course, there are still challenges are there left and we have to continue to take.
Mr. Yoshida: So I would like to continue to support the docket Sun, who will take leadership in doing so.
Mr. Yoshida: Yeah.
Speaker Change: So we'd like to end this part of this so curious session by media. Thank you.
Speaker Change: So we like to entertain questions from the analysts.
Speaker Change: Investors I would like to serve as the MCM condo of IR group. Thank you very much in advance and then online participant if you have any questions first please to click the bottom for a hand raising on Webex and then if you are in the room and would like to ask a question. Please raise your hand and we will.
Speaker Change: Bring a microphone to use.
Speaker Change: We'd like to ask you to ask two questions per capita thank you very much in advance. So please raise your hand.
Speaker Change: To the right hand side in the second row. Please the person is not designated thank you very much.
Speaker Change: I know the JP Morgan I have there two parts of our questions.
Speaker Change: And I have a quick question about the financial results in the third quarter, the game and network businesses in there.
Speaker Change: First up on that of course active users.
Speaker Change: Made a record high our increase in marketing this quarter, what's the driving force for has such a increase of Diffusers hardware E. Pencil you sit anywhere and sides body software titles are sitting with an eye to them also.
Speaker Change: Cruising so everything is growing but especially in this fourth quarter what was the major driving force and is this a sustainable growth what do you think of it. That's my first part of your question. My second part of your question is to Mr. Yoshida.
Speaker Change: Now Sony management human capital.
Speaker Change: Human resources.
Speaker Change: My question in the last decade.
Speaker Change: You have went through a major reform.
Speaker Change: And Mr. Here, Amy say, you'll hear me say to Turkey.
Speaker Change: And each played a role.
Speaker Change: And then maybe they restricted just about business environment, an error as well, but the three of you play to set the world, but in lower dwell was it won't all be each took the management in the capital market in the future.
Speaker Change: And 10 years from now on that in order to create a further better sunny.
Speaker Change: Those are three two and see us.
Speaker Change: Have may be nurtured and developed the future generation of the management human resources. What do you think of that have you developed and trained the future Ceos I'd like to answer the first question first.
Speaker Change: So the third quarter as you're aware.
Speaker Change: There's a seasonality influence so that this figure should go up most of that to season. So at that timing. We are fortunate that the consoles really sold well there was a major influenced over good sales of consoles more than we had expected not just similar momentum was felt.
Speaker Change: In addition to that as good news high quality third party software.
Speaker Change: Titles, well available a launch during the third quarter. The there was a synergy and they may use.
<unk> achieved the highest in record so theres a seasonal fluctuation so in the fourth quarter it might come down again, but still overall speaking, it's a continuous growth.
Speaker Change: Is idea of a state of growth so we'd like to continue this momentum.
Speaker Change: And obviously the hardware.
Speaker Change: Yeah, we have achieved a high level of penetration.
Speaker Change: For the next fiscal year.
Speaker Change: They're very strong the D titles, including first party and third party titles are likely to be launched so the better momentum could be created for us to boost ourselves for the next Cisco to them. Thank you.
Speaker Change: So let me respond in the last 10 years through the major reform Mr. Hirai E myself into toxin.
Speaker Change: He played a certain role for doing a each time of course Mr. Hewitt.
Speaker Change: <unk> launched the world conduct.
Speaker Change: That is entertainment focused approach I think.
Speaker Change: Yes.
And I work together with Mr to Turkey.
Speaker Change: So in the last several years, especially that the creation shift with focus of mine. He wishes shift to creation content creation is one area. However hardware was camera there.
Speaker Change: Capturing it should be also focused and also component and in part battery.
Speaker Change: Where at least where we exited already but semiconductor.
Speaker Change: Is it related to capturing creation. So we should focus on semiconductor as well so we shifted to Oh creation.
Speaker Change: And there's a crummy gamete deal the interest use that internally, though we'd have to close get closer to the third then motivational to users.
Speaker Change: The core gamers.
Speaker Change: Get closer to them and anemic, we should focus on the argument as well.
Speaker Change: And that's I think of as a focus of our discipline and management, but what about the future. There are many ways to describe it.
Speaker Change:
Speaker Change: Mr to Turkey.
Speaker Change: Last year in May we presented a creative Entertainment Division was launched by him last year in May.
Speaker Change: And which cause empathize that technology should be continuously triggered especially computing.
Speaker Change: And sensing should be emphasized continued to emphasize so I expect that to be the focus as to the human resource training.
Healey: Mr. Healey I entered the gig we had lots of experiences.
Speaker Change: Sony.
Speaker Change: One point I'd like to raise an example.
Speaker Change: I personally.
Speaker Change: As the police station ended it to link the 20th century of NIM, 20th century, with Sony and others.
Speaker Change: He was a package imager of the last century, but now it shifted to ensue transformed to the visa network. So I often say internally.
Speaker Change: How did you achieve just self did change that is network was a split SUNY network Entertainment was created in 2010 and new drug system separated and then again in 2016 again.
Speaker Change: They were we merged integrated than Sony Computer Entertainment.
Speaker Change: <unk> became a 20 meter directive entertainment. So the name was changed so people are now connected by networking and in addition, and it is about people in the area of Weatherization that three people.
Speaker Change: Put into national.
Speaker Change: And these three and needle. These three people are the members those who had the Thunder Bayou <unk> experience and they became a supporter of the gym team to Turkey Imager member supporting Mr. Turkey. So it's one of the good examples I could cite a quote.
Speaker Change: Yeah.
Speaker Change: Moving on to the next question.
Speaker Change: From the stage took a left field.
Speaker Change: Third row from the front.
Speaker Change: Wearing a black jacket. Please.
Speaker Change: No color from Mizuho Securities.
Sorry for my voice.
Stefan: So question same question to you Stefan in total Exxon.
Stefan: So before it became the group.
Stefan: Had the split TV subsidiary so between group headquarters and the business you have separated so I think that's been your management style. So in terms of business management and decision making.
Stefan: Your involvement in it.
Stefan: Each of the business what would that be.
Stefan: So.
Stefan: So director of the business and as a shareholder as our groups here I mean, you have various positions.
Stefan: And so.
Stefan: There's centrifugal and central pivotal power. So how do you strike a balance between the two I mean, it's easier said than done.
Stefan: So.
Stefan: Uh huh.
Speaker Change: Inclusive of the message to the future Oh, what for the difficulties that you had to what spot.
Stefan: Thought process you went through.
Stefan: Okay.
Stefan: So sorry for the abstract question. So it flips on you worked on our mobile games and you went into the businesses.
Stefan: Thank you.
Stefan: Type of manager, but now your group CEO.
Stefan: And so her too.
Stefan: Cage in each businesses how's that going to be different from your citizens is going to be a difference. Please tell me.
Speaker Change: So first question.
Stefan: Let me talk about that.
Stefan: So in terms of group management.
Stefan: As you rightly pointed out so I think you need to bolster this centrifugal centripetal force.
Stefan: We need both.
Stefan: And I think the crux of that both of US for both is a purpose I think so it's not I said that it's not that.
Stefan: That is something.
Stefan: I want their employees to think that we did it and they actually feel that way.
Stefan: And of course manage.
Stefan: Our responsibility is to connect the purpose to profit.
Stefan: But oh in doing.
Stefan: In doing that I think that is quite important.
Stefan: And so.
Stefan: There's a purpose, which is our promise and so centrifugal centripetal force striking a balance between the two is what I have been working on.
Stefan: So maybe a little bit abstract response, but even though myself as an individual.
Stefan: I enjoyed working on business has on even if it's difficult I enjoyed that process. So what.
Stefan: So.
Stefan: In most cases I recall those hands on experiences, but having experienced both what I feel is that.
Stefan: We're going to.
Stefan: Have to decide how and what do we support in our businesses.
Stefan: So some things that you have to do.
Stefan: And some things.
Speaker Change: Unnecessary things you Ruth.
Speaker Change: Not too both are important and so.
Speaker Change: That is all about creating a balance between centrifugal centripetal power.
Speaker Change: And so.
Speaker Change: So.
Speaker Change: I want to provide.
Speaker Change: This thorough a cure.
Speaker Change: From the management, so I want to think what is the best way to do that so when things are going well I try not to interfere with that.
Speaker Change: Sorry, I would like to adopt.
Speaker Change: Okay.
Speaker Change: So now we'd like to move onto the next question.
Speaker Change: Yeah.
Speaker Change: F N B C. Nico cuts at our son, who joined online please.
Speaker Change: Yeah.
Speaker Change: Got to love from S. M. B C Securities I have two questions and first is the business related.
Speaker Change: And the G.
Speaker Change: And N S N I N S S.
Speaker Change: I've made a very good start this fiscal year and on the other hand at the market.
Speaker Change: We are worried about sustainability and so there are many are the response is what will happen to the next fiscal year and so since this fiscal year is very good they will be dip next there that is of concern. So you said there are many things about upside, but G. N N S N I N S S.
Uh huh.
Speaker Change: That's a D. The five what are the upsides and downsides.
Speaker Change: Downsides.
Speaker Change: And the second.
Speaker Change: The question is.
Speaker Change: To lead the mid to long range plan.
Speaker Change: So for the new organization.
Speaker Change: They have already shared that with us.
Speaker Change: And then with regard to the personnel you have already covered it and you mentioned the diversity and the returning to the younger generation.
Speaker Change: And so next generation AR that talent to take care of the management what is your expectation to them and at the very beginning and yesterday said that Sony has been nurtured by capital market and what is your expectation toward visa B capital market. If there are any please share them with us.
Speaker Change: Thank you.
Speaker Change: So the answering your first question.
Speaker Change: Let me answer your first question.
Speaker Change: So you talked about sustainability of the profit of or are the game and I N. S says and what will happen to the next fiscal year and that's all game area.
Speaker Change: The rather than sell through of our control now.
Speaker Change: The M. A U has been accumulated network service plays the main rule. So even though there is a higher profits there will not be that the rapid to dip and that's what next fiscal year first party third party, though we expect very good the titles are coming out so that is a good thing.
Speaker Change: Here, So we have a high expectation for the performance of the next fiscal year. So we would like to take advantage of those opportunities without missing them and that's all I N S. S.
Speaker Change: That's really the largest sites are the the sensor are we will continue to have the highest sales and the by the end of this fiscal year will solve issues related to ELD and so there will not be the major the concerns for the next the fiscal year, but smartphone.
Speaker Change: The market itself, what will evolve in that market.
Speaker Change: So but that is a market, which has been reaching maturity, but there is a I F feature newly incorporated and whether that will vitalize.
Speaker Change: The smartphone market I think that is a very important point are affecting our business. That's all thank you.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: So then your management team under the leadership of total get some I have expect a great deal and what the expected visa b the capital market, Let's say a question so that I have had opportunities that stakeholders.
Speaker Change: The clients partners shareholders.
Speaker Change: Clients and so that was those contacts.
Speaker Change: That has made me think that for our customers and employees.
Speaker Change: Yeah.
Speaker Change: They have focused on a certain area as their expectations for employees, though of course, they've liked improves the carriers and compensation.
Speaker Change: And when you face the capital market I feel strongly.
Speaker Change: The wide, which sometime in that dynamic range of the expectation you talked about the diversity, but the of course, the investors have different timeframe.
Speaker Change: And so whether they.
Wish to focus or they accept the portfolio offered by management that there is a difference. So that there is a wide dynamic range of the requests and expectations of the market that we can learn.
Speaker Change: From them.
Speaker Change: So I answered that question the next the generation.
Speaker Change: The management in terms of talents, what I expect from them. So we have come to internet native than generation gradually and so they have been exposed to the internet since they're younger days. So they will be the main the the people to support.
Speaker Change: One is management.
Speaker Change: So the sense of a the speed and the capability to find something new and limited and very little the resistance to technology I believe those mindset and attitude will generate something new and I will be widely Ah the penetrated and the Nic.
Speaker Change: Generation is able to handle them very easily and I have very high expectation not only the service and products the way of the working and the management style will change.
Speaker Change: And that is how I sense are the sign of change and I would like to support and I'd like to support those changes actively thank you.
Speaker Change: Time is running short.
Speaker Change: So we'd like to ask just one question per person from now and thank you for your kind understanding. Please raise your hand, just one question per person. Please only participant from Citigroup securities.
Speaker Change: Securities They saw something please.
Speaker Change: It's L O with Citigroup.
Speaker Change: I have just one question.
Speaker Change: Yeah.
Speaker Change: Uh huh.
Speaker Change: And about the midrange plan and then 10% increase.
Speaker Change: Increase is planned in a scenario in the last nine months.
Speaker Change: The growth rate you are super cheap over like 23% increase of the profit achieved already so you over achieved.
Speaker Change: So after the revised annual plan in the fourth quarter, there might be some expense to be made that 10% increase might be a in the scenario, but that's clearly you over achieving the original target 10% growth.
Speaker Change: Scenario.
Speaker Change: And versus now.
Speaker Change: You might have a maybe a different extra performed worse than the original plan is that something that just happened incidentally or you already knew and you expected that you overachieve. That's why you may come up that might have come up with a more conservative the forecast objects cause you reflect upon that.
Speaker Change: And if the current growth it wasn't a coincidence, but there was a continuous sustainable growth are high growth that Erie continues to achieving than your midrange plan needs to be maybe updated more frequently or quickly, but do you think of that thank you.
Speaker Change: Thank you for your question.
Speaker Change: As you're aware.
Speaker Change: The it's a midrange business plan dispatch is three years.
Speaker Change: So the this is just the first year and.
Speaker Change: And.
Speaker Change: So updating or maybe it's a premature in terms of some timing to obtain premier scrutineers outside the environment. There are lots of factors of uncertainty.
Speaker Change: So in three years, we would like to achieve.
Speaker Change: A cheap something we had promised to do that every year there is a.
Speaker Change: Maybe fluctuation maybe the speed of implementation might be expedited or slowed down it's inevitable. Because forex is also one impact. So tailwind is something we have to make it usable and against the risks we should be sensitive to being quickly cope with food as much as opposed to food I've achieved a stable.
Speaker Change: The growth thank you.
Speaker Change: Yeah.
Speaker Change: This will be the final question.
Speaker Change: Third row from the front from the stage to the left hand side.
Speaker Change: [noise] person with a beige jacket. Please.
Speaker Change: Thank you for this opportunity.
Speaker Change: Shimada.
Speaker Change: And the one question from Waqar Syed of Securities when you talked about the.
Speaker Change: Competing on the global stage, that's what you want to do and you are going to make an effort for that.
Speaker Change: So going forward what about M&A.
Speaker Change: So is it going to be bigger than before or are you going to be.
Speaker Change: More aggressive than before about M&A.
Speaker Change: And also internally you said that there are various issues.
Speaker Change: So to resolve those issues and to enhance profitability in each business.
Speaker Change: What the.
Speaker Change: Potential do you have.
Speaker Change: <unk> growth and how you're seeing that progress well to compete at a global level.
Speaker Change: Well, it's it does it lead to bigger M&A, it's not synonymous so really have to find the appropriate opportunity.
Speaker Change: And as I said.
Speaker Change: It has to meet our criteria. If there are those that meet our criteria, we'd like to study them and axon.
Speaker Change: Axon them.
Speaker Change: And in terms of solving.
Speaker Change: Internal issues, how much room do you have for growth based on solving those problems pressures, what my focus and management would be.
Speaker Change: How much growth and profit.
Speaker Change: Very good carry expecting this business.
Speaker Change: And.
Speaker Change: So in terms of our competitive positioning.
Speaker Change: Turns of the competitors.
Speaker Change: Market growth.
Speaker Change: So based on that.
Speaker Change: We can set a goal this is how far we should be able to go and if we should.
Speaker Change: If you fall short of that we should discuss so what is it that's lacking or we should find that out.
Speaker Change: Then.
Speaker Change: Tried to bring reality closer to ideal I think an iterative process of that.
Speaker Change: So for all of the segments, there's not going to be uniform profitability or growth expectations for each business as an ideal situation and we want to think together how we can approach that come closer to that that's all with that wed like to a close.
Speaker Change: <unk> Group Corporation.
Speaker Change: Our consolidated financial results presentation.
Speaker Change: The photo session to <unk>.
Speaker Change: Follow up will be for the media for investors analysts. Please.
Speaker Change: Leave the room.
Speaker Change: Thank you so much for joining us today.