Q3 2025 Honda Motor Co Ltd Earnings Call

February 13, 2025

In July we spoke Ive seen a couple it sounds like you're very much really spills.

To join us here today.

And then I can begin kind of murder campaigns limited FY 2025 third quarter financial results briefing.

Right.

I'm the first to introduce the executives in attendance.

Speaker Change: A director Executive Vice President and representative Executive Officer, Ginger L. A hammer.

Speaker Change: How do you do.

Speaker Change: And director managing executive director and CFO.

Speaker Change: A G fujimoto.

Speaker Change: Thank you very much.

Speaker Change: The first missed early I'm over overview, the FY 'twenty five third quarter financial results.

Speaker Change: And FY 'twenty five full year consolidated forecast.

Speaker Change: Followed by.

Fujii: Mr. Fujii minutes' explanation on the details.

Fujii: If the OEM at the floor is yours.

Fujii: And thank you for your continued support behind those business activities. Thank you very much.

Fujii: And let me explain the financial results for the FY 'twenty to 'twenty five in third quarter.

Fujii: Let me highlight the key points.

Fujii: Why 25 third quarter Accumulative operating profit was one Chilean went up to 39.9 billion with an operating profit margin of 7.0%.

Fujii: In motorcycle business.

Fujii: Volume remains strong globally and third quarter Accumulative total was 15 5 million units.

Fujii: And automobile business consolidated unit sales volume decreased by 2200 97000 units year on year. Despite solid sales in North America due to drop in Asia, mainly China.

Fujii: Operating cash flow after R&D adjustment representing funding for future investments. They made at the same level of year on year, and one 945 billion yen.

Fujii: FY 'twenty five consolidated financial forecast.

Fujii: Changed operating profit until you're in 420 billion yen profit 40 at 950 billion yen.

Fujii: Motorcycle unit sales has been revised upward to a record high.

Fujii: Due to strong global sales automobile operations, mainly due to decline in Japan is revised downward a J 3.75 million.

Fujii: And due to rise in motorcycle sales in exchange rates operating profit and profit for the year forecast remains unchanged.

Fujii: Amortization was made.

Fujii: By 'twenty three 'twenty 'twenty four to repurchase 1.1 trillion, yet with our company shares how did you at 84.9 billion yen has been acquired as of January 31st 2025.

Fujii: We will work to complete the repurchase of $1 one trillion yen in shares.

Fujii: Yes.

Fujii: Next in that situation in the major markets.

Fujii: Regarding Moody's like operations due to strong demand in India, and Brazil, combined with economic recovery in Vietnam sales exceeded the same period last year.

Fujii: Automobile business saw an increase in Japan at the other states, but due to the severe market environment in China.

Fujii: Total sales dropped year on year.

Fujii: In Japan sales volume in the third quarter. It was lower than the same period last year due to fierce competition amongst others.

The accumulative solid consolidated financial results for FY 'twenty five third quarter is as follows.

Fujii: Profit increased by $63 5 billion yen year on year totaling 1000.

Fujii: $139 9 billion yen equity method investment profit decreased by $94 5 billion yen a loss of $27 2 billion yen profit for the period attributable to owners of the parent company was 805.2 billion yen down $64 3 billion yen.

Fujii: Consolidated financial forecast for the fiscal year, ending March 2025, we maintain our previous forecast for both operating profit I went to the unplanned 20 billion yen and current profit attributable to owners of the parent company and 950 billion yen exchange rate assumption is 152 yen against the dollar for the.

Fujii: Fourth quarter and full year.

Fujii: The forecast for the annual dividend remains at 68 million unchanged from the previous announcement.

Fujii: Additionally, a resolution was made on December 23rd 2020 board to repurchase 1.1 trillion worth of company shares as of January 31st 2025, $184 9 billion yen has been acquired cumulative FY 'twenty 25 total of acquired shares is 472 billion.

Fujii: Yeah.

Fujii: If that's what you meant I will present, the details of the financial results.

Fujii: Yeah.

Fujii: Alright.

Fujii: I'll explain the results of the third quarter.

Fujii: Regarding to the cumulative unit sales until the third quarter FY March 2025 of the group.

Fujii: For the motorcycle segment due to the or year on year increase mainly in Asia 15, with young and a 508000 units sold for automobile segments due to a decrease in our Asia, mainly China 2 million and 817000 units sold and for pulp production.

Fujii: Due to decreased mainly in Europe, a true-blue under 516000 units were sold.

Fujii: Consolidated financial results of the cumulative three quarters were explained already next I will explain factors of ups and downs of appropriate before income taxes of accumulative nine months from your own ear.

Fujii: Operating profit increased by 63 5 billion yen year on year because of the following factors.

Fujii: Well you got to go sales impact appropriate increase due to the rise in sales students. However, incentives went up and that's the appropriate was squeezed by 104.3 billion yen regarding price cost impact thanks to the pricing that the commensurate they improve their product.

Fujii: Values profit increased by 376 billion yen regarding expenses due to incremental labor and subcontracting costs are appropriate squeezed by 54.3 billion yen R&D cost increased.

Fujii: It's 90.

Fujii: And 97 5 billion yen downward impact on brokerage and the currency effects squeezed the appropriate by $56 3 billion yen profit before income taxes were down by 38 point and IBD again because of the appropriate of equity method to decline due to a drop of the details in China and so on although operating profit it's.

Fujii: Self increased.

Fujii: Regarding the operating profit by segment are 501.6 billion game for a motorcycle business and $402 6 billion of automotive and 244 9 billion yen for financial service businesses and pop protection other businesses made losses of 9.3 billion again.

Fujii: Next are the cash flows.

Fujii: And free cash flows from the businesses, excluding the financial services businesses were.

Fujii: 693.7 video yen during the first nine months cumulative of the FY 'twenty five net cash at the end of the quarter was the 3.7789 trillion yen operating cash flows after R&D adjustment for 1.945 trillion yen.

Fujii: Yeah.

Fujii: Next I'll explain consolidated the business the forecast of our FY March 2025.

Fujii: Regarding the projection of the group's unit sales versus our previous forecast unit sales of the motorcycle will be a 20.6 million, mainly reflecting the increase in Asia.

Fujii: Hi.

Fujii: And the needs of the automobiles will be a 3.75 billion, mainly reflecting the decline in Japan.

Fujii: And are those of pulp production efficiencies will stay at a three point of six 6 million. The same as are the likes of progress.

Covered the forecast of the consolidated performance of the five March 'twenty 'twenty five.

Fujii: Let me explain factors behind the changes in profit before income taxes year on year basis.

Fujii: Operating profit will be up by a 38 billion yen year on year.

Fujii: The breakdown of the different skus will be regarding the sales impact although the incremental unit sales will push up the appropriate however, the higher incentives and so forth will squeeze the appropriate 598 billion.

Fujii: Regarding price cost impact.

Fujii: Reflecting or are protected by the improvement and so on will add appropriate by 535 billion yen.

Fujii: Expenses will increase by $73 5 billion squeezing the profit.

Fujii: R&D costs increased by 125 billion yen squeezed with appropriate too and the parents of the effects of currency effects will impact negatively on profit by hundreds and hundreds of point 5 billion yen, although operating profit itself increased the profit before income taxes will drop by 177.23 billion.

Fujii: Reflecting the decline in profitability methods.

Fujii: Because of the reduction in unit sales in China next let me explain the differences in a comparison to the previous forecast we will keep the same operating appropriate over the previous guidance.

Fujii: Which are the breakdown will be motorcycle sales will increase however, it would be are you need to vote, who builds will reduce.

Fujii: Thus the salespeople for squeezed appropriate by a 27 5 billion yen price cost squeeze the appropriate by a 15 billion yen expenses.

Fujii: We will increase by a five video, yeah, and reducing the prophage and the currency effects will push up the appropriate by 47 5 billion yen perfect before impact.

Fujii: Taxes.

Fujii: Our income taxes will be expected to be higher by 30 billion yen, reflecting yen depreciation, causing a forex gains lastly, this is a forecast for capital expenditures depreciation and R and D spending.

Fujii: And that concludes my presentation. Thank you very much.

Fujii: Okay.

Speaker Change: You know come up.

Fujii: Thank you for listening.

Fujii: And now we're ready to proceed to Q&A.

Fujii: As we have been informed that we will be taking questions via zoom.

Fujii: Okay.

Fujii: We are receiving a number of inquiries regarding.

Fujii: Business integration.

Fujii: Okay.

Fujii: Questions will be addressed when a person to host the news conference from 450 P. M. So we would like you to think from asking questions with actually their business integration and focus solely on.

Fujii: The financial results related questions, we ask for your understanding and cooperation there should have questions. Please use the press at the race.

Fujii: And due to the time limitation, we would like you to limit your questions to two per person when asking a question. Please turn on both your camera and microphone.

Fujii: So I'll go first.

Fujii: First question.

Fujii: Antonio.

Fujii: So you can't say MSW, Oklahoma plays.

Fujii: Yeah.

Fujii: Okay.

Okay.

Fujii: Squamous Vishal this nuclear MRF immaterial case I can you hear me now yes.

Fujii: Okay.

Fujii: I have two questions.

Fujii: Okay.

Fujii: Sure.

Fujii: But the full year.

Fujii: Cortes plan.

Fujii: They're good and is about.

Fujii: Operating profit of 410, and then you add to that down at the 280 billion for the first quarter and so and what is the reason for the decline and I'm asking the same question I think it's related to the extent it about.

Fujii: Compared to the past.

Fujii: Plant them. Please talk about the risks and opportunities and so that is my question and emulate to proceed to the next question.

Fujii: Hum.

Fujii: And in the interim.

Fujii: And that's where Jim you talked about the EV incentives them to quite an extent and.

Fujii: I think it was the 100 billion increase from the original plan and the third quarter. After the third quarter adds of February right now and North American instead of how much increase are you seeing and I think that the incentive costs, increasing and I think of that jump. The consolidated for automotive is declining. So please explain about the incentives there.

Fujii: With America. Thank you MST, Oklahoma I think you've asked two questions but.

Fujii: My first about the fourth quarter.

Fujii: Plan and.

Fujii: Well in the third quarter agile.

Fujii: There to the actual third quarter were you asking about what about the fourth quarter that was my understanding of your question here, but basically speaking as at the fourth quarter.

Fujii: Well at the end of our fiscal year and so.

Fujii: What increases is.

Fujii: Especially the R&D area.

Fujii: And also as a G E.

Fujii: And because at the end of the fiscal year and is there a number of things on that.

Fujii: Our paid Alabama and delivered to us and so there is increased and extended to them and therefore in the fourth quarter. It tends to be the SGA and R&D and they are tended to be well roughly speaking.

Fujii: <unk> is stage higher well, it's M 390, or a little less than 401 billion and for the third quarter operating profit, but most of that is M. S T E and R&D.

So I think that that those are the main ones but.

North American incentive related items.

Fujii: Slightly.

Fujii: No.

Fujii: And the procurement cost.

Fujii: Hi.

<unk> is in some cases in other words and their finance business I'm talking about here the procurement cost is increasing but that's included but it's mostly the SGA and R&D and that would explain the numbers for the fourth quarter.

Fujii: No, but I mean, North America, and they've tested in North America.

Fujii: Well it has increased slightly now about the programming cost is slightly higher.

Fujii: And this is also reflected partially and in total.

Fujii: I think of that is just a marshal increase as a total that is.

Fujii: Because we're talking about North America in the hall, and they testers of North America in the hall, but.

Fujii: E V in Tampa.

Fujii: Just focus on EV incentives.

Fujii: In the second quarter.

Fujii: The first half.

Fujii: I said, there will be for full year and the impact of 100 billion yen and to just talking about that but I do think that that.

Fujii: Number has slightly declined in other words are we were able to reduce that he said that.

Fujii: Right.

Fujii: Because as the sales of unit volume and also the production well. These are products being produced at G M and the.

Fujii: The production there is.

Fujii: The adjustment in the supply.

Fujii: And therefore the final.

Fujii: Vis vis their supply.

Fujii: We have tried to reduce the supply and therefore and there is and they need to make payments. So I discussed the possibility of making payments for compensation et cetera, and therefore in the fourth quarter here.

Fujii: And is this and things could turn out to be on the negative side, but right now we don't have any numbers at hand, and therefore, they're not reflected right now but there are.

Fujii: Possibility such negative factors in the fourth quarter.

Fujii: Is there any additional explanation.

Fujii: Well, yes about the fourth quarter.

Fujii: To begin with them compared to the original plan I think you were asking what it looks like right now, but for the full year forecast and that the exchange rate.

Fujii: You do 152 Yang.

Fujii: No.

Fujii: But.

Fujii: And we still have a one or.

Fujii: Chile is 420 billion operating profit that has been covered upset by the motor cycle back and it has not been fully update for the automotive and therefore for the full year.

Fujii: It in.

Fujii: And that is that this will be a negative but the third quarter. The motorcycle business. It did offset the automotive business and there was the weakening of the yen and there was about a 30 billion yen compared to the budget add on and two in the third quarter. So the full year negative.

Fujii: <unk> has more skewed been skewed to the fourth quarter and then that is the difference between the last time and this time that is off.

Fujii: Thank you.

Fujii: Thank you very much Mr Grammar.

Speaker Change: Next question is I see Asahi Shimbun newspaper Mr. Nishiyama. Please.

Fujii: Okay.

Speaker Change: As you will share my promotional Haisheng when can you hear me yes.

Fujii: So thank you for the explanation.

Speaker Change: I have two questions.

Speaker Change: First one earlier.

Speaker Change: The question was already covered at this point.

Speaker Change: Which is automobile.

Speaker Change: And as our profitability.

Speaker Change: As compared to the motorcycles.

Speaker Change: Either way unless there's agribusiness is very good.

Speaker Change: That is a factor behind however in order to improve the profitability of the businesses of crusher, there could be or another separate a discussion about ambitious integration. So long for it but what is your measures for improving our profitability of the cards and then.

Speaker Change: The last press.

Speaker Change: Presentation.

Speaker Change: And that time around or there was a.

Speaker Change: Trump's administration topics I talked about a lot and then.

Speaker Change: Atari full can now to air Canada, and Mexico is relative B ambition of course, it is a frozen for a month, but we don't know when I too will be.

Speaker Change: Ah coming back again, and what is your measure against that elements of the type of visit in place what is the impact on their businesses.

Mr Nishiyama: Thank you very much Mr Nishiyama.

Speaker Change: The profitability of those mobile businesses.

Speaker Change: To start with a resurgent situation are the revenue for this year.

Speaker Change: Okay.

Speaker Change: Looking at that our revenue.

Speaker Change: That may look a little lower especially in comparison to the other verbal disaster business. However in order to give you the.

Speaker Change: Precise answer.

Speaker Change: For instance, battery EV development cost.

Speaker Change: And.

Speaker Change: About reviews.

Speaker Change: Sales volume is not so high in our North America and in China, However, as battery EV businesses and.

Speaker Change: It was our investment in the areas of augment where that is.

Speaker Change: Deducted from that the remainder of B R. I C E and hybrids are businesses.

Speaker Change: And for that part alone.

Speaker Change: Actually our the situation for that but it's not so different from the previous term are the profitability is about 8% for that part.

Speaker Change: Therefore, highbridge and then a gasoline based engine cars have a profitability that is improved from the previous situation that is a kind of overall picture and batteries.

Speaker Change: We are preparing for the air business.

Speaker Change: Battery Evs now for instance.

Speaker Change: G M. A production that was the starting point for North America and then.

Speaker Change: Right next fiscal year.

Speaker Change: We are going to.

Speaker Change: Produce a launch are the cars that we developed by ourselves in North America, and U S and as of today I wouldn't say that that we'll be making a very good business right at the start however.

Speaker Change: Including the preparation for the next Gen cards are we are going to.

Speaker Change: Improve the businesses of the upcoming Remodels and we will spend the.

Speaker Change: Development efforts with investment, which will improve the situation. Furthermore, and then profitability of the businesses.

Speaker Change: This model ears twenty-seven onward.

Speaker Change: No.

Speaker Change: Are you already explained that in their December last year.

Speaker Change: Next generation hybrid.

Speaker Change: Starting around the middle ear 26 week or in December.

Speaker Change: And are the hybrids are in those years will be of a much higher profitability and also our commercial values of those will be much better and with them in place.

Speaker Change: Sure.

Speaker Change: It will improve the profitability of this type is decision, including ice cars and hybrid and then Trump administration. After the March 1st are the question is is there a hypothetical I should say however, if I want to try to answer your question squarely.

Speaker Change: Thank you for your question.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: That is so.

Speaker Change: Suppose a much 1st% to 25% tariff is that if that comes in place.

Speaker Change: So the impact on the business up into March of this year, there could be a perhaps a 20 billion plus.

Speaker Change: The impact of that is the our assumption as of today. However, it is a super short term impact right.

Speaker Change: Production in Mexico, Canada.

Speaker Change: Have those protections in there and we will try to bring over those.

Speaker Change: Product.

Speaker Change: From those two areas to the U S earlier, perhaps either February and that is.

Speaker Change: Our actions in the short term.

Speaker Change: And in terms of that tariff increase again.

Speaker Change: In the Big picture.

Speaker Change: Of course every year the situation is rather different however are about one third or.

Speaker Change: <unk> hired a one third of our the businesses are using the airport.

Speaker Change: Components or a product.

Speaker Change: Wrote down from Canada, and Mexico, the remainder of our two cultures.

Speaker Change: Two thirds are produced in the U S. Therefore, our.

Speaker Change: Our second highest local content of the production of the vehicles.

Speaker Change: Next default related states.

Speaker Change: Uh huh.

Speaker Change: So.

Speaker Change: And the question is how effective that policy would become a in fact these are very difficult.

Speaker Change: To visualize it.

Speaker Change: So at this moment, what we can do is to do something very they're short term.

Speaker Change: Which is about our current production based on the current model mix and the production in Mexico, and our Canadian pocket for Newsweek. Good reorganized it makes our product mix of the production of those wells. There. This is a something we can do short term, but in a midterm perspective that could change the allocation.

Speaker Change: Of the Earth model mix in the different ways, we are preparing for that too.

Speaker Change: However.

Speaker Change: We have a possible actions under consideration for a short term mid term long term so forth, but we don't really give a go at this moment for any of the actions on the table today.

Zimmer: So for Zimmer on a Sunday anything to add please.

Speaker Change: So again the tariff.

Zimmer: It is.

Speaker Change: So what is the error.

Speaker Change: Approximate.

Speaker Change: Estimates of the impact based on the simple calculation based on the ear CPU.

Speaker Change: Are complementary supplies.

Speaker Change: In the United States, we have the air next to Ford.

Speaker Change: Our local content of the productions meeting over 60% of the product produced in the U S. We have some imports from Japan as well, but 40% of those are supported from a by the production in Mexico, and Canada and of course those two countries are also.

Speaker Change: Dependent on the U S too.

Speaker Change: And at the moment, we are talking about are the or sales in the U S with Shepard change to the production in Mexico, and Canada last year. It was about a 550000 in Canada is dependent on the U S. For 40000 in Mexico is dependent on 20000 that adds up.

Speaker Change: Two 600 and of that 10000.

Speaker Change: Units and of course that depends on the type of bottles, but.

Speaker Change: Suppose a cost.

Speaker Change: 30000.

Speaker Change: The cost of those cars and then 25% of the tier.

Speaker Change: To that amount of the earn money and that way you can calculate our impact on the cost plus you can think about others like us deals and they'll be England and other miscellaneous materials is a bold but that.

Speaker Change: That could be like a food digits or high end of the four digit figures I suppose.

Speaker Change: As much as I could.

Speaker Change: Expect is a impact.

Speaker Change: And Michael They go Amazon said about our.

Speaker Change: George made long term measures actions.

Speaker Change: And when should we trigger to ash that those actions of course, we have to watch carefully what's going on there and as you said, we'll just start with that thank you.

Speaker Change: Hi, Michelle.

Speaker Change: Thank you very much Mr. Nishiyama and next question. Please.

Speaker Change: Some yummy.

Speaker Change: Sure.

Speaker Change: Gently.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Let me just bring a lot of hospitals that I see from Yomiuri Shimbun newspaper. Thank you.

Speaker Change: About the motorcycle sales in Thailand, and as declining again F. M. At the end of last payment quota I think it's due to market conditions and what impact does this have on your automobile business that my first question and the second question about repurchasing your shares.

Speaker Change: And as of December Yes, there was some the talk of the business and degradation with Nissan and based on that law now that this has been scrapped and what is the reason for continuing to do the repurchase. Thank you.

Speaker Change: Mr Neto Hershey.

Speaker Change: Well about your first question.

Speaker Change: Yeah.

Speaker Change: But the impact on automotive business right.

Speaker Change: Yes.

Speaker Change: Okay.

Okay.

Speaker Change: Yes, what is your outlook of the Thai market and.

Speaker Change: Okay I understand.

Speaker Change: I understand I have a motorcycle sales in Thailand This year's numbers.

Speaker Change: Compared to last year and is quite low that's for sure.

Speaker Change: And this is because of their credit.

Speaker Change: Yeah.

Speaker Change: Right.

Speaker Change: And the difficulty in financing.

Speaker Change: And so that is the cause that is clear and that burdened the motorcycle sales in Thailand, just looking at that and towards the end of last year.

Speaker Change: Now we.

Speaker Change: Okay.

Speaker Change: Well.

Speaker Change: We have for the low income bracket.

Speaker Change: Scene and that the income tax.

Speaker Change: No.

Speaker Change: I was refunded.

Speaker Change: The Thai motorcycle sales was better than.

Speaker Change: But it still is quite significantly look year on year.

Speaker Change: Automobile.

Speaker Change: And linkage to the financing and difficulty to secure loans I think this is continuing and therefore the market.

Speaker Change: In both in the motorcycle and automobile.

Speaker Change: Get into Atlanta.

Speaker Change: It has been on the decline for the past year ourselves.

Speaker Change: So given jim's circumstances however.

Speaker Change: As far as motorcycle business.

Speaker Change: Yeah.

Speaker Change: Well the Thai market we.

We have an 80%.

Speaker Change: Market share.

Speaker Change: And therefore, we want to maintain their share.

Speaker Change: And.

Speaker Change: Wait for the market to recover or should I say.

And as for the automotive business.

Speaker Change: On the macroscopic level.

Speaker Change: And the loan screening is very tough and it's typical to secured loans, but in addition to that for the automotive business.

Speaker Change: There are the Chinese Oems, which I am introducing evs and I think of that in this and it has added impact for battery. He made I'm 20 within the market about 20% or so.

Speaker Change: I am in the passenger vehicle segment.

EV battery Evs, so its not increasing.

Speaker Change: But it's rather sluggish in.

Speaker Change: In Thailand, the battery Evs, but we also have.

Speaker Change: We're making every T cell B V says do we wanted to work harder next fiscal year.

Speaker Change: About your second question about the repurchase of shares and why we're continuing to do so well.

Speaker Change: Well to begin with on December 23rd we.

Speaker Change: So we will start consolidation for a possible business integration and at the same time. This resolution it was made.

Speaker Change: And decided but.

Speaker Change: And what are the talks continue.

Speaker Change: Two I tried to ensure that this will not come.

Speaker Change: Comprised any insider trading and therefore that this amazing why we had that resolution and made the announcement, but it was just a matter of timing.

Speaker Change: And so I'm talking about the size of the repurchase and this is the accumulation of the past that we want to optimize.

Speaker Change: Equity ratio and are therefore.

Speaker Change: We believe that the.

Speaker Change: The timing at which this was resolved was just at the time we were starting.

Speaker Change: The business integration talks with.

Nissan, but the size of the repurchase and the schedule of the buyback as well.

Speaker Change: It was high time for us to do it so it was just.

Speaker Change: A matter of tiny.

Speaker Change: But.

Speaker Change: This was due to.

Speaker Change: They need to optimize and that was something coming from the past.

Speaker Change: Alright.

Speaker Change: And we will continue to buyback and nothing will change.

Mr Fujiwara: Mr Fujiwara.

Speaker Change: Sure.

Speaker Change: Okay, well, let me add some numbers here.

Speaker Change: Yeah.

Speaker Change: And as of the end of December.

Speaker Change: It was $3 8 million.

Speaker Change: So it's about two five months good.

Speaker Change: At the beginning of the month and due to the Lehman crisis, and others, we have experience and that experience in one month worth.

Speaker Change: Of cash is something that we want to haul normally.

Speaker Change: And so but against that it was at 1.5 months with weather and so it was one five months.

Speaker Change: And so we want to make appropriate equity ratio jumped so and.

Speaker Change: It's L. P. B R. One fold that was our target and instead of holding cash at hand, and we'd like to return to our shareholders and therefore, we have decided to go for a buyback of 1.1, Chilean yet and as Mr. <unk> has explained and this was not because of the this is Eddie.

Speaker Change: They should talks with near certainty.

Speaker Change: Oh, there's 1.1 trillion yen program once it is completed.

Speaker Change: We will have a one month level.

Speaker Change: Cash at hand, so we think that this is the appropriate level. Thank.

Speaker Change: Thank you.

Speaker Change: I myself.

Speaker Change: Thank you.

Speaker Change: Thank you Mr Monahan sheep.

Speaker Change: You know someone next shoot.

Speaker Change: <unk> from Nikkei Shimbun, the home Pizza she'll be Mr. Nick would you. Please.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: <unk> from Nikkei.

Speaker Change: Can hear me.

Speaker Change: Thank you.

Speaker Change: So motorcycle and automobile businesses going forward what is the concept of ideas for the operating profit.

Speaker Change: For the time being I E V devault.

Speaker Change: <unk> maintained our SG&A costs. These are prioritized and automobile profitability is not.

Speaker Change: Growing <unk>, maybe it's a person a bit.

Speaker Change: Also with a module and motorcycle business is we have our electrification going on still or how much atwood that bill.

Speaker Change: You gave him the earn a good marketplace too.

Speaker Change: However, overall, if you have a mixture of the two businesses do you think we can grow them together continually going forward.

Speaker Change: Or would that be suppressed a bit or are there any.

Speaker Change: Opportunities to wrong too.

Speaker Change: So that is the question.

Speaker Change: Thank you Mr with cheap.

Speaker Change: To start with the motorcycle businesses.

Speaker Change: Yeah.

Speaker Change: In fact, it is or for the automobile to.

The progress of our battery Evs and the progress that was that.

Speaker Change: I think the assumption of the speed is one thing that we have to remind about however, it is kind of difficult to anticipate the speed of that at this moment because of the North America policy situation.

Speaker Change: And these things are quite unclear now.

Speaker Change: However, let's start with the motorcycle businesses electrification of the area of motorcycles.

Speaker Change: As a as compared to that of automobiles.

Speaker Change: We have investment are on those for waters are cool and our the amount of divestment is unknown.

Speaker Change: Very big as computer that about automobiles.

Speaker Change: We are successfully are electrifying our motorcycles base.

Speaker Change: Based on the air past technologies of the engines of games and we are working on similarly, where they bought VEB salary best combine these technologies are so good that way we can.

Speaker Change: Have there.

Speaker Change: Restricted or development cost are those successful and then as we said they are automobiles are the about your EV Kosovo the cause is quite.

Speaker Change: A large but a motorcycle and it is not that much and looking at the global motorcycle Margarita today, I think we still have the leeway or would your.

Speaker Change: Growth potential two in India, Brazil in a short while we still have.

Speaker Change: With markets there the Philippines, Pakistan, Bangladesh for instance, we still have a lot of market to grow into.

Speaker Change: In that regard.

Speaker Change: Even with the air ice engine based vehicles, or we will be able to maintain a high level of the profitability for the motorcycle businesses for quite a while and for their automobiles.

Speaker Change: Recovered that are basically the first question budge.

Speaker Change: We have the air gasoline based engines, including Highbridge at which have the 8% that profitability today.

Speaker Change: No.

Speaker Change: So.

Speaker Change: With the next generation.

Speaker Change: Generation hybrid that comes in in 'twenty.

Speaker Change: 'twenty 'twenty.

Speaker Change: 29, or a 27 or 28 excuse me a loser profitability will be growing into the air two digits.

Speaker Change:

Speaker Change: About 10%.

Speaker Change: Okay.

Speaker Change: Therefore.

Speaker Change: Pete.

Speaker Change: So profitability or business of the bathroom E. B what would the air business are being like these are situations and we are going to launch here, but really these are newly or going forward.

Speaker Change: Of course, we will have improvement as compared to the current situation in the United States. However, as I said are currently the visibility is quite poor for instance, R O a.

Speaker Change: Our income tax deductions of both.

Speaker Change: We thought about.

Speaker Change: L. J E. S battery plants are some foods are would be utilized.

Speaker Change: With the air assumption of a $7500 a reduction of the taxi is based on a that was the original assumption and now. The question is what will become of eventually in this fixture. So we can't really say, what's going to happen. Therefore, it is very difficult to tell you.

Speaker Change: The business outlook, but are nevertheless, we'd like to maintain the highest level of our profitability are where the ice and current gasoline based vehicles.

Speaker Change: In the meantime, we the battery based Tvs vehicles, we could be more flexible and.

Speaker Change: B a more flexible.

Speaker Change: Flexible to react to the air any given circumstances as we go thank you very much.

Speaker Change: All right.

Mr. Ritchie: Thank you very much Mr. Ritchie next question. Please.

Speaker Change: And Mr Military F M, Japan automotive daily please.

Speaker Change: Yeah.

Speaker Change: Okay.

You can do especially when we started the square mcaleese jewelry and speaking can you hear me yes.

Speaker Change: Good.

Speaker Change: I think you're muted.

Uh huh.

Speaker Change: We cannot hear you.

Speaker Change: Can you hear me now yes.

Speaker Change: Yes.

Speaker Change: Thank you.

Speaker Change: The first question about China.

Speaker Change: And so we see that there is a 40% year on year decline from April to December and the E series and that was.

Speaker Change: Sorry to be promising, but there has been a long lead time required for ensuring the quality and depth of locally and the.

Speaker Change: H E B M market CSA, developing but how you're trying to make a recovery in China. That's my first question.

Speaker Change: The number I want to make some confirmation that the full year and the capital expenditure is 30 70 billion yen cross sell less I think.

Speaker Change: So is this due to the re visiting at the exchange rate is there anything that you postponed and 10% year Capex about.

Jason: Jason first of all thank you very much for the question.

Speaker Change: First about the S series M S N the quality well.

Speaker Change: And in the preparation for mass production I think that we were a month or two behind schedule that is pusher and bad debt. There was no any significant problem, so hum and from March to April.

Speaker Change: We will be launching.

So I think that this is the third plant.

[Company Representative] (Honda Motor Co Ltd): Thank you very much for sparing your time to join us here today. We'd now like to begin Honda Motor Co., Ltd. FY 2025 third quarter financial results briefing. Let me first introduce the executives in attendance. Our director, executive vice president, and representative executive officer, Shinji Aoyama. How do you do? A director, managing executive director, and CFO, Eiji Fujimura. Thank you very much. First, Mr. Aoyama will overview the FY 2025 third quarter financial results and FY 2025 full year consolidated forecast, followed by Mr. Fujimura's explanation on the details. Mr. Aoyama, the floor is yours. Thank you for your continued support for Honda's business activities. Thank you very much. Let me explain the financial results for the FY 2025 third quarter. First, let me highlight the key points.

Operator: Thank you very much for sparing your time to join us here today. We'd now like to begin Honda Motor Co., Ltd. FY 2025 third quarter financial results briefing. Let me first introduce the executives in attendance. Our director, executive vice president, and representative executive officer, Shinji Aoyama. How do you do? A director, managing executive director, and CFO, Eiji Fujimura. Thank you very much. First, Mr. Aoyama will overview the FY 2025 third quarter financial results and FY 2025 full year consolidated forecast, followed by Mr. Fujimura's explanation on the details. Mr. Aoyama, the floor is yours.

Speaker Change: But oh.

Speaker Change: Andy.

Is the preparation for mass production I think of that we were a month or two behind schedule that is for sure but there wasn't any significant problem. So hum and from March to April and we will be launching them. So I think that this is the third plant.

Speaker Change: M. S. R. P. M. The final decision has not been made and MSRP and the current market.

Speaker Change: Sure.

Speaker Change: And the ingredients are there.

Speaker Change: The situation is quite tough and what pricing, we should adapt et cetera, and these are things that we're still looking into right now.

M. S. R. P. M. The final decision has not been made and MSRP and the current market too.

Speaker Change: About the competitiveness, whether there is or is not competitiveness.

Speaker Change: As we are making announcement locally Aberdeen Sterling the appearance the interior and the space design.

Including days that did.

Speaker Change: Design has all but a high appraisal so a we have a high expectation for our models.

The situation is quite tough and what pricing we should adopt et cetera are these are the things that we're still looking into right now.

About the competitiveness, whether there is always not competitiveness as we are making investments those are they are they starting the appearance the interior mm mm space design has all but a high appraisal. So a we have a high expectation for Ah.

Speaker Change: Yes.

Yes.

Speaker Change: First the E series, well as we embed announcing the past.

Speaker Change: The seven.

Speaker Change: S series <unk> seven mm.

Speaker Change: I'll start with that money.

Speaker Change: And then there.

Speaker Change: Sedan G T will be launched and then after a year.

I will.

But yes.

Yes.

First.

Speaker Change: Seven.

E series, well as Weibo denouncing him the best.

Speaker Change: Well it will have a three will see the large SUV launched so we are preparing this model. So this will be the series and therefore with this we wanted to establish and extend the S series.

The seventh.

S series and seven mm.

I will start with that money.

And I'm done.

Speaker Change: So Dan G T will be launched and then after a.

Speaker Change: That is what occurred a battery EV Pat Miller.

Speaker Change: Yeah seven.

As you know.

This well will have a three rows of seats, but large SUV launched so we are preparing the spa blue chip. So this will be the series and therefore with this we want to establish and extend the S series.

Speaker Change: The death ratio and 'twenty 'twenty four calendar year it was 46%.

Speaker Change: Yeah, what will happen, but there are different views on this.

Speaker Change: So of.

Speaker Change: But.

Speaker Change: Okay. So we are thinking.

Speaker Change: That is what occurred a battery EV that b well.

Speaker Change: Yeah.

55% of book, So there will be an increase of.

Speaker Change: As you know.

Speaker Change: The death ratio and 'twenty 'twenty four calendar year it was 46%.

Speaker Change: New energy vehicles.

Speaker Change: But.

Speaker Change: For the hybrid debt, we wanted to go ahead with that.

Speaker Change: Here, what will happen well there are different views on this.

Speaker Change: We want to use their card accord and CRB and the SR.

Speaker Change: So of.

Speaker Change: But.

Okay. So we are thinking.

Speaker Change: And hybrid vehicles.

Speaker Change: Well, we have an incentive race right now which is quite tough so it's not selling that much but other than that but we think that basically at next fiscal year.

Speaker Change: Yeah.

Speaker Change: A 55% of books, so there will be an increase of new energy vehicles.

Speaker Change: But.

Speaker Change: It may be a hybrid that we want to go ahead with that and we want to use they could afford and CRB and of the SR.

Speaker Change: Maybe the year after.

Speaker Change:

Speaker Change: And as I said.

Speaker Change: As the next generation hybrid.

Speaker Change: In hybrid it both of them, but we have an incentive race right now we're just quite tough so it's not selling that much but other than that I believe.

Speaker Change: Well started mass production in China, So it's of FY 'twenty seven.

Speaker Change: Yes, FY 'twenty seven so at that time, it was tight and.

Speaker Change: Thank god that basically.

Speaker Change: Next fiscal year now maybe they are after.

Speaker Change: T cells. These models, but they never ratio is increasing and therefore.

Speaker Change: Hum.

Speaker Change: As I said.

Speaker Change: The next generation of hybrid.

Speaker Change: Mm mm blow started mass production in China, So it's FY 'twenty seven.

Speaker Change: Well, if there's a 10% increase and there they are done and EV vehicles declined the market. The gassy they called market will decline by more than 10%. This is something that we cannot deny.

Speaker Change: Yes, FY 'twenty seven so at that time it will start.

Speaker Change: And.

Speaker Change: Okay.

Speaker Change: Wanted to sell these models, but and this ratio is increasing and therefore.

Speaker Change: So next fiscal year, depending well looking at it is there.

Speaker Change: Yeah.

Speaker Change: Well, if there's a 10% increase and there are none and EV vehicles declined the bucket the gassy they call market will decline by more than 10%. This is something that we cannot deny.

Speaker Change: Well, we have to assume what market changes will take place and.

Speaker Change: Put together our business plan.

Speaker Change: Well, yes, I think that with the LTV ratio, increasing and we wanted to sell I.

Speaker Change: So next fiscal year, depending well looking at are in itself.

Speaker Change: Eddie V's and that is and the opportunity that we wanted to capture about the sector into capex and so yeah SAB and the.

Speaker Change: Well, we have to assume what market changes will take place and just put together a business plan.

Speaker Change:

Speaker Change: Decline.

Speaker Change: 70 billion is not really a delay but is that it has been posted it slightly but what we are planning for the end of the fiscal year will be.

Speaker Change: Well, yes it does.

Speaker Change: I think that that would be an EV ratio, increasing and we wanted to sell.

Speaker Change: Eddie V's and that is the opportunity that we wanted to capture them.

Speaker Change: Carried over into the next fiscal year.

Speaker Change: The second the Capex, so and some of the.

Speaker Change: The beauty of next fiscal year. So that's about the change that we see.

Speaker Change: Specifics can I disclose the specifics well.

Speaker Change: Declined 70 billion is not really a delay but is set up it has been posted slightly but what we are planning for the end of the fiscal year will be.

Speaker Change: The battery EV.

Speaker Change: Related investment.

Speaker Change: Canada related.

Speaker Change: Carried over into the next fiscal year and the beauty of next fiscal year. So that's about the change that we see.

Speaker Change: Well.

Speaker Change: There has.

Speaker Change: Not really add and delay about we've just changed the timing.

Speaker Change: The specifics can I disclose the specifics.

Speaker Change: Okay. Thank you.

Speaker Change: Hi.

Well.

Speaker Change: The battery EV.

Speaker Change: Thank you very much Mr immediately.

Related.

Speaker Change: Next question.

Speaker Change: That's it.

Speaker Change: From a PK ACO Mr. Tang please.

Speaker Change: Canada.

Speaker Change: Well.

Yeah.

Speaker Change: There has.

Speaker Change: Yeah.

Speaker Change: Not really.

Speaker Change: And delay, but we've just changed the timing.

Speaker Change: Okay.

Speaker Change: Okay. Thank you.

Speaker Change: Hi.

Speaker Change: Thank you very much Mr. Mitch it's pretty.

Speaker Change: Okay.

Speaker Change: Next question.

Speaker Change: Okay.

Okay.

Krish: From Okay ACI Mr Krish.

Speaker Change: And I guess that alone chuckling.

Speaker Change: Krish.

Speaker Change: Yeah can you hear me yes.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: In Q.

Speaker Change: Uh huh.

Speaker Change: Two questions.

Bush punish the U S market automobiles.

Speaker Change: In the United States, a Trump administration studied and.

Speaker Change: And I guess I don't know I tried doing okay. Yeah can you hear me yes.

Speaker Change: Upcoming or Bev sales, what do you think it how it would be enter well hybrid demand is a good today, but how would you assess.

Mike: This is Mike.

Mike: Thank you I don't want you to only two questions.

Mike: Bush punish the Jewish market automobile.

Speaker Change: The air current EV and the <unk>.

Mike: Into that stage, a Trump administration started and Oh.

Speaker Change: I bridge sales situation, how to address our current situation and the other question is a southeastern Asian region hybrid and plug in hybrid a well accepted.

Shinji Aoyama: Thank you for your continued support for Honda's business activities. Thank you very much. Let me explain the financial results for the FY 2025 third quarter. First, let me highlight the key points.

Mike: Coming to a bev sales what do you think it's a how it would be and Oh hybrid or demand is a good today, but how would you assess the current E V and the.

Speaker Change: Accepted very popular there I heard.

[Company Representative] (Honda Motor Co Ltd): The FY 2025 Q3 cumulative operating profit was JPY 1,139.9 billion, with an operating profit margin of 7.0%. In motorcycle business, sales volume remains strong globally, and Q3 cumulative total was 15.5 million units. In automobile business, consolidated unit sales volume decreased by 297,000 units year-on-year, despite solid sales in North America due to drop in Asia, mainly China. Operating cash flow after R&D adjustments, representing funding for future investments, remained at the same level year-on-year at JPY 1,945 billion. The FY 2025 consolidated financial forecast unchanged. Operating profit, JPY 1,420 billion. Profit for the year, JPY 950 billion. Motorcycle unit sales has been revised upward to a record high due to strong global sales.

Shinji Aoyama: The FY 2025 Q3 cumulative operating profit was JPY 1,139.9 billion, with an operating profit margin of 7.0%. In motorcycle business, sales volume remains strong globally, and Q3 cumulative total was 15.5 million units. In automobile business, consolidated unit sales volume decreased by 297,000 units year-on-year, despite solid sales in North America due to drop in Asia, mainly China. Operating cash flow after R&D adjustments, representing funding for future investments, remained at the same level year-on-year at JPY 1,945 billion. The FY 2025 consolidated financial forecast unchanged. Operating profit, JPY 1,420 billion. Profit for the year, JPY 950 billion. Motorcycle unit sales has been revised upward to a record high due to strong global sales.

Speaker Change: And.

Speaker Change: No.

Speaker Change: Do you have a plan to be more engaged in the businesses.

Mike: The bridge shows a situation Oh, just wish our current situation and the other question is the southeast Asia region hybrid and plug in hybrid a well accepted.

Speaker Change: Them equal.

Speaker Change: Please share with US your assessment of how you are going to.

Speaker Change: About your businesses in there. Thank you very much out of it yourself with your question.

Mike: Accepted very popular there I heard.

Mike: And.

Speaker Change: So trumps administration studied eventually and then as of now.

Mike: And I do have a plan to be more engaged in the businesses for them.

Speaker Change: Well, the things keep changing or minute by minute.

Speaker Change: So our please share with US your assessment of how you are going to.

Speaker Change: But our stance is.

Speaker Change: Hum about your businesses are in there. Thank you very much as it yourself with your question.

Speaker Change: To stay flexible and.

Speaker Change: To be.

Speaker Change: Be able to be.

Speaker Change: Be agile in are reacting to the situation.

Speaker Change: Trump's administration statute eventually and then as of now.

Speaker Change: But as of now.

Speaker Change: Well, the things keeps changing or minute by minute.

Speaker Change: Canada, and Mexico, and its tariff situation.

Speaker Change: Awesome.

Speaker Change: Our our stance is to stay flexible and.

Speaker Change: The current interest point is around that.

[Company Representative] (Honda Motor Co Ltd): Automobile operations, mainly due to decline in Japan, is revised downward to 3.75 million units. However, due to rise in motorcycle sales and exchange rate, operating profit and profit for the year forecasts remain unchanged. A resolution was made on 23 December 2024 to repurchase JPY 1.1 trillion worth of company shares. JPY 184.9 billion has been acquired as of 31 January 2025. We will work to complete repurchase of JPY 1.1 trillion in shares. Next are the situation in the major markets. Regarding motorcycle operations, due to strong demand in India and Brazil, combined with economic recovery in Vietnam, sales exceeded the same period last year. Automobile business saw an increase in Japan and the United States, but due to the severe market environment in China, total sales dropped year-on-year.

Shinji Aoyama: Automobile operations, mainly due to decline in Japan, is revised downward to 3.75 million units. However, due to rise in motorcycle sales and exchange rate, operating profit and profit for the year forecasts remain unchanged. A resolution was made on 23 December 2024 to repurchase JPY 1.1 trillion worth of company shares. JPY 184.9 billion has been acquired as of 31 January 2025. We will work to complete repurchase of JPY 1.1 trillion in shares. Next are the situation in the major markets. Regarding motorcycle operations, due to strong demand in India and Brazil, combined with economic recovery in Vietnam, sales exceeded the same period last year. Automobile business saw an increase in Japan and the United States, but due to the severe market environment in China, total sales dropped year-on-year.

Speaker Change: Be able to be usher.

Speaker Change: And Albania and is still.

Joe: Joe in are reacting to the situation.

Speaker Change: Tariffs are about 25% on those I would I provided some impact of course, however, those are materials like or other medium Atlas steels.

Speaker Change: Sure.

Speaker Change: But as of now.

Speaker Change: Canada, and Mexico, and it's Ty refresh situations.

Speaker Change: Are the current interest point, you said around that.

Speaker Change: Additional too difficult to find out or our.

Speaker Change: Our solution because we have a.

Speaker Change: <unk>.

Speaker Change: Oh vignette I just do.

Speaker Change: Quite a bit of a procurement within the country in the U S. A.

Speaker Change: Sure.

Speaker Change: Tariffs are about 25% on those I would provide us from Inbev and of course, however, those are materials like or other medium Oh stools.

Speaker Change: Part of the air suppliers could be from Canada from Japan.

Speaker Change: Japan as well.

Speaker Change: For alumina aluminum and steel however, I don't think it is a very difficult to address that situation of the tariff of for those two materials at a 25% of this.

Speaker Change: Additional too difficult to find out or Oh solution, because we have a quite.

Speaker Change: Quite a bit of by procurement within the country in the U S. A.

Speaker Change: For a C b, you from Mexico and Canada.

Speaker Change: Part of the air supplies could be from Canada from Japan.

Speaker Change: If that's a tariff apollo's she continues for our year two or three years for instance are the.

Speaker Change: Japan as well.

Speaker Change: For aluminum and steel however, I don't think it is a very difficult to address that situation of the tariff of for those two materials at a 25% of this.

[Company Representative] (Honda Motor Co Ltd): In Japan, sales volume in the Q3 was lower than the same period last year due to fierce competition, among others. The cumulative consolidated financial results for FY 2025 Q3 are as follows: Operating profit increased by JPY 63.5 billion year-on-year, totaling JPY 1,139.9 billion. Equity method investment profit decreased by JPY 94.5 billion, a loss of JPY 27.2 billion. Profit for the period attributable to owners of the parent company was JPY 805.2 billion, down JPY 64.3 billion. Consolidated financial forecast for the fiscal year ending March 2025. We maintain our previous forecast for both operating profit at JPY 1,420 billion and current profit attributable to owner of the parent company, JPY 950 billion.

Shinji Aoyama: In Japan, sales volume in the Q3 was lower than the same period last year due to fierce competition, among others. The cumulative consolidated financial results for FY 2025 Q3 are as follows: Operating profit increased by JPY 63.5 billion year-on-year, totaling JPY 1,139.9 billion. Equity method investment profit decreased by JPY 94.5 billion, a loss of JPY 27.2 billion. Profit for the period attributable to owners of the parent company was JPY 805.2 billion, down JPY 64.3 billion. Consolidated financial forecast for the fiscal year ending March 2025. We maintain our previous forecast for both operating profit at JPY 1,420 billion and current profit attributable to owner of the parent company, JPY 950 billion.

Speaker Change: It will be.

Speaker Change: Difficult situations, so our action might be different or the physical how would we would assess the air upcoming go situations like that.

Speaker Change: On our CPU from Mexico and Canada.

Speaker Change: And as of now like I said there'll be four $7500 things how.

Speaker Change: Ah if that's a tariff apollo's she continues for our year two or three years for instance are the.

Speaker Change: Would that be.

Speaker Change: Eventually and.

Speaker Change: It will be a difficult situations, so extra might be different or the physical how would we would assess the our upcoming cause situations like that.

Speaker Change: Also the state of California.

Speaker Change: Is having these zev a regulation.

Speaker Change: And as of now like I said that'd be fool a $7500 things are how are you.

Speaker Change: And how would that be.

Speaker Change: Change incur under Trump Administration reserve.

Speaker Change: Would that be.

Speaker Change: Eventually and Oh, so are the state of California.

Speaker Change: The regulation in California in fact.

Speaker Change: The multi year 'twenty six.

Speaker Change: Having these zev a regulation.

Speaker Change: We are to incorporate a zev requirements and then under this regulation, we need to sell more battery evs.

[Company Representative] (Honda Motor Co Ltd): Exchange rate assumption is 152 yen against the dollar for the Q4 and full year. The forecast for the annual dividend remains at JPY 68, unchanged from the previous announcement. Additionally, a resolution was made on 23 December 2024 to repurchase JPY 1.1 trillion worth of company shares. As of 31 January 2025, JPY 184.9 billion has been acquired. Cumulative FY 2025 total of acquired shares is JPY 472 billion. Mr. Fujimura will present the details of the financial results.

Shinji Aoyama: Exchange rate assumption is 152 yen against the dollar for the Q4 and full year. The forecast for the annual dividend remains at JPY 68, unchanged from the previous announcement. Additionally, a resolution was made on 23 December 2024 to repurchase JPY 1.1 trillion worth of company shares. As of 31 January 2025, JPY 184.9 billion has been acquired. Cumulative FY 2025 total of acquired shares is JPY 472 billion. Mr. Fujimura will present the details of the financial results.

Speaker Change: Yeah.

Speaker Change: And how would that be a changing care under Trump administration deserve and other regulations in California. In fact from the multi year 26 are we to incorporate a zev requirements are and then under this.

Speaker Change: However, a.

Speaker Change: Given our current.

Speaker Change: Situation.

Speaker Change: It is a quota difficult to achieve that requirement or the for the regulation.

Speaker Change: And I wouldn't say this is a perfectly linked with the Trump administration.

Speaker Change: Regular that's true we need yourself more battery evs.

Speaker Change: Intention. However are the zev related regulation will have to change as accordingly pumps, but as for the hybrid.

Speaker Change: However, given the current situation it is quite difficult to achieve that requirement or the for the regulation.

Speaker Change: <unk>.

Speaker Change: Yeah.

Speaker Change: Affordably priced or hybrid.

Speaker Change: And.

Speaker Change: I wouldn't say this is a perfectly linked with the Trump administration intention. However are these F where they did a regulation will have to change as a coating pumps, that's a as with highbridge.

Eiji Fujimura: I'll explain the results of Q3. Regarding the cumulative unit sales until Q3, FY March 2025 of the group. For the motorcycle segment, due to the year-over-year increase mainly in Asia, 15,508,000 units sold. For automobile segments, due to decrease in Asia, mainly China, 2,817,000 units sold. For power product segments, due to decrease mainly in Europe, 3,516,000 units were sold. Consolidated financial results of the cumulative three quarters were explained already. Next, I will explain factors of ups and downs of our profit before income taxes of our cumulative nine months year-over-year. Operating profit increased by JPY 63.5 billion year-over-year because of the following factors.

Speaker Change: <unk> be available with our more of our a cheap.

Speaker Change: The choice of the consumers are and that is what's happening today as a fact in the case of Honda.

Speaker Change: <unk>.

Speaker Change: This year.

Speaker Change: <unk> struggled to get a hold of it at all.

Speaker Change: About a 400000 a hybrid cars.

Speaker Change: Affordably priced or Highbridge are can be available with our more of our a cheap for.

To be sold.

Speaker Change: It is a fiscal year ending March 20.

Speaker Change: So the choice of the consumers are and that is what's happening today.

Speaker Change: Rajiv five enter next year it will be a little more maybe a little less than 500000 units are of a hybrid we expect therefore this year, we have a 25% of our hybrid cars.

Speaker Change: I think it's upon them.

Speaker Change: This year.

Speaker Change: About a 400000 a hybrid cars.

Speaker Change: Not to be sold.

Speaker Change: Out of all.

Speaker Change: Ah is a fiscal year ending March 'twenty.

Speaker Change: Types are that is a prospect.

Speaker Change: 25, and next year it will be a little more maybe a little less than 500000 units are of a hybrid we expect therefore this year, we have a 25% of our hybrid cars.

Speaker Change: For this year.

Speaker Change: And next year, a 500000 students either they are North America for.

Speaker Change: For hybrid therefore.

Speaker Change: In a global context this year, the volume will be a bit less in China, a bit less a hybrid over there too.

Eiji Fujimura: Regarding our sales impact, our profit increased due to the rise in sales unit. However, incentives went up and thus the profit was squeezed by JPY 104.3 billion. Regarding price-cost impact, thanks to the pricing that commensurate with the improved product values, profit increased by JPY 376 billion. Regarding expenses, due to incremental labor and subcontractor costs, profit squeezed by JPY 54.3 billion. R&D costing fees, 97.5 billion yen downward impact on profit, and the currency effects squeezed the profit by JPY 56.3 billion.

Speaker Change: Oh types are that there's a prospect.

Speaker Change: This year I would say a 900000 to hybrid cars for this current year and next year it will be a more than 1 billion.

Speaker Change: For this year.

Speaker Change: And next year are probably 500000 students either they are North America.

Speaker Change: It's our assessment as of today and what is the benefit for Honda I think that was your first question I suppose.

Speaker Change: Therefore.

Speaker Change: In a global context.

Speaker Change: This year, the volume will be less in China, a bit less a hybrid over there too.

Speaker Change: Did I understand you are in terms of your question really better about southeast Asia countries.

Speaker Change: So this year I would say a 900000 hybrid cosmo.

Speaker Change: The demands for hybrid in Thailand, and Indonesia market are the demand for that is or a mounting.

Speaker Change: Parents ear and next year it will be a more than 1 billion. That's our assessment as of today and what is the benefit.

Speaker Change: In Thailand the.

Speaker Change: The hybrids are Russia is growing.

Speaker Change: Honda I think that was your first question actually because I didn't understand you are in terms of your question was really about the about the southeast Asia countries.

Speaker Change: Let's say.

Eiji Fujimura: Profit before income taxes were down by JPY 38.9 billion because the profit of equity method declined due to a drop of the unit sales in China and so on, although operating profit itself increased. Regarding the operating profit by segments, JPY 501.6 billion for motorcycle business, JPY 402.6 billion for automotive, JPY 244.9 billion for financial service businesses, and power products and other businesses made losses of JPY 9.3 billion. Next are the cash flows. Our free cash flows from the businesses excluding our financial services businesses were JPY 693.7 billion during the first nine months cumulative of the FY March 2025.

Speaker Change: The 2% also a hybrid I suppose.

Speaker Change: Indonesia.

Speaker Change: The mountains for hybrid in Thailand, and Indonesia market are the demand for that is or a mountain.

The competitor is.

Speaker Change: Going ahead, and we are little behind.

Speaker Change: However, the reassure our out of the entire market will.

Speaker Change: In Thailand are the hybrids are Russia is growing.

Speaker Change: It will be like there of course with the battery Evs have been growing 6%. These days.

Speaker Change: Let's say.

Speaker Change: The 2% also a hybrid I suppose.

Speaker Change: Lithium hybrid is about 8%.

Speaker Change: Indonesia.

Speaker Change: The competitor is I'm going to go ahead, and we are a little behind.

Speaker Change: So.

Speaker Change: Out of the entire market there are still a small percentage and the holidays.

Speaker Change: However, the ratio out of the entire market are it would be like or of course with the about three E. Visa growing 6%. These are either lithium.

Speaker Change: Also behind.

Speaker Change: As of now, but next year, we will be more aggressive shiga, they're selling the hybrid cars in there Indonesia. Thank you.

Speaker Change: Hybrid is about 8%.

Speaker Change: Got it.

Speaker Change: So.

Eiji Fujimura: Net cash at the end of the quarter was JPY 3.7789 trillion. Operating cash flows after R&D adjustment were JPY 1.945 trillion. Next, I'll explain consolidated business forecast over FY March 2025. Regarding the projection of the group's unit sales versus the previous forecast, unit sales of the motorcycle will be 20.6 million, mainly reflecting the increase in Asia. Units of the automobiles will be 3.75 billion, mainly reflecting the decline in Japan. Those power product businesses will stay at 3.66 million, same as the last forecast. I've covered the forecast of the consolidated performance of the FY March 2025.

Speaker Change: Thank you and I'm sure I apologize for the unclear question, Jim when I talked about the benefit I was saying that they're seeing an increase in demand for HEV hybrid.

Speaker Change: Thank you.

Speaker Change: Out of the entire market there are still a small percentage and the holidays are a little behind.

Speaker Change: As of now, but next year, we will be loved grocery Bob Gee.

Speaker Change: And therefore, I thought that there might be an opportunity behind it is sell more hybrids.

Speaker Change: There's something to hybrid caused either Indonesia.

Speaker Change: So in that context.

Speaker Change: Well, you said that there'll be an increase in the United States of some 100000 units. So I think that that you've answered my question. Thank you.

Speaker Change: All right.

Speaker Change: Thank you I'm sure I apologize for the question, Jim when I talked about the benefit I was saying is that fair.

Speaker Change: And one clarification, if I may.

Speaker Change: We're seeing an increased demand for HEV hybrid and I'm, therefore, I thought that there might be an opportunity behind it to sell more hybrid.

Speaker Change: And about the North America.

Speaker Change: Market you said the.

Speaker Change: E V regulation will become reality.

Speaker Change: So in that context.

Speaker Change: Well, you said that there'll be an increase in the United States of some 100000 units. So I think that that you've answered my question. Thank you.

Speaker Change:

Speaker Change: What.

Speaker Change: Is that a realistic number.

Speaker Change: Oh.

Speaker Change: And also the hybrid ratio.

Speaker Change: And one clarification, if I may.

Speaker Change: Well this fiscal year is 25% I think you and the next fiscal year and if it were to increase what will be the ratio for next fiscal year can you add that explanation. This yes.

Speaker Change: About the North America.

Eiji Fujimura: Next, let me explain factors behind the changes in profits before income taxes on a year-on-year basis. Operating profits will be up by JPY 38 billion year-on-year. The breakdown of the differences will be regarding the sales impact, although the incremental unit sales will push up the profit, however, the higher incentives and so forth will squeeze the profit by JPY 198 billion. Regarding price-cost impact, pricing reflecting a product value improvement and so on will add profits by JPY 305 billion. Expenses will increase by JPY 73.5 billion, squeezing the profit, and R&D costs will increase by JPY 125 billion, squeezing the profit too. The currency effect will impact negatively on profit by JPY 100.5 billion.

Speaker Change: Market you said the.

Speaker Change: E V regulation will become reality, but.

Speaker Change: Got.

Speaker Change: Is that a realistic number.

Speaker Change: How about the hybrid ratio well this year, it's about 25% next fiscal year.

Speaker Change: And also the hybrid ratio.

Speaker Change: There'll be an increase of 100000 in North America, but I think the ratio would be.

Speaker Change: Well this fiscal year is 25% I think.

Speaker Change: But next fiscal year, if it were to increase what will be the ratio for next fiscal year can you add that explanation. Please yes.

Speaker Change: T.

Speaker Change: The percent of Lamar maybe.

Speaker Change: About three 5% I guess.

Yeah.

Speaker Change: And about the Z E.

Speaker Change: The hybrid ratio well this year, it's about 25% next fiscal year.

Speaker Change: E V and regulation I talked about the industry on the hook.

Speaker Change: There'll be an increase of 100000 in North America, but I think the ratio will be.

Speaker Change: I think it will be difficult to achieve that regulation standard but currently.

Speaker Change: T.

Speaker Change: The percent of Lamar maybe.

Speaker Change: The situation the regulation itself.

Speaker Change: About three 5% I guess.

Speaker Change: Might become something more realistic that was what I was trying to say here. So I really don't have any specifics to talk about here. We're just thinking that the regulation might be lucid to a more realistic number. Thank you.

Speaker Change: So at the end.

Eiji Fujimura: Although operating profit itself increased, the profit before income taxes will drop by JPY 177.3 billion, reflecting a decline in profit of equity method because of the reduction in unit sales in China. Next, let me explain the differences in comparison to the previous forecast. We will keep the same operating profits of the previous guidance, of which the breakdowns will be motorcycle sales will increase. However, the unit of automobiles will reduce. Thus, the sales impact will squeeze the profit by JPY 27.5 billion yen. Price cost will squeeze the profit by JPY 15 billion yen. Expenses will increase by JPY 5 billion yen, reducing the profit. The currency effects will push up the profit by JPY 47.5 billion yen.

Speaker Change: E V regulation, let's talk about the industry on the hook.

I think it will be difficult to achieve that regulation standard but.

Speaker Change: Yeah.

Speaker Change: They like the situation the regulation itself.

Speaker Change: This decade, thank you very much.

Speaker Change: It.

Speaker Change: And it's time for us to earn.

Speaker Change: It might become something more realistic that was what I was trying to say here. So I really don't have any specifics to talk about here.

Speaker Change: This we were light and our financial results briefing session as well as the material someday will be posted on our website.

Speaker Change: Thinking that the regulation might be lucid to a more realistic number. Thank you.

Speaker Change: Once again, thank you for your participation.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you very much.

Speaker Change: And it's hard for us to earn and with this we were like XI and our financial results briefing session as well as the material someday will be posted on our website.

Speaker Change: Once again, thank you for your participation.

Eiji Fujimura: Profit before impact taxes before income taxes will be expected to be higher by JPY 30 billion, reflecting yen depreciation causing Forex gains. Lastly, this is a forecast for capital expenditures, depreciation, and R&D spending. That concludes my presentation. Thank you very much.

[Company Representative] (Honda Motor Co Ltd): Thank you for listening. Now we'd like to proceed to Q&A. As we have been informed, we will be taking questions via Zoom. Currently, we are receiving a number of inquiries regarding our business integration. However, those questions will be addressed when our president holds the news conference from 4:50PM. We would like you to refrain from asking questions related to the business integration and focus solely on the financial results related questions. We ask for your understanding and cooperation. Those who have questions, please use the raise hand button. Due to the time limitation, we would like you to limit your questions to two per person. When asking a question, please turn on both your camera and microphone. First question from Toyo Keizai, Mr. Yokoyama, please. This is Yokoyama from Toyo Keizai.

Operator: Thank you for listening. Now we'd like to proceed to Q&A. As we have been informed, we will be taking questions via Zoom. Currently, we are receiving a number of inquiries regarding our business integration. However, those questions will be addressed when our president holds the news conference from 4:50PM. We would like you to refrain from asking questions related to the business integration and focus solely on the financial results related questions. We ask for your understanding and cooperation. Those who have questions, please use the raise hand button. Due to the time limitation, we would like you to limit your questions to two per person. When asking a question, please turn on both your camera and microphone. First question from Toyo Keizai, Mr. Yokoyama, please.

Speaker Change: Doug with nasal congestion, we've all been there offer no drip is here to help.

Speaker Change: Wow, it ridiculously powerful nasal congestion relief in second phase right word sprayed.

Speaker Change: Whether it's allergies or cold Afrin as you go to solution offering the well Israel use as directed.

Junya Yokoyama: This is Yokoyama from Toyo Keizai. Can you hear me now?

Speaker Change: Stepping to the phone right now Pam Bonnie so we're going to switch right back to that event in our nation's capital.

Speaker Change: And I'm, sorry, we were a little bit late I was in the West wing swearing-in toffee gathered and side dress came straight back here sorry, thanks for being.

Speaker Change: Being patient with us with the delay.

Speaker Change: We're here today, because we have filed charges against the state of New York, We have filed charges against Kathy Holdco, we've filed charges against La Tisha, James and Mark Schroeder, who is with DMV.

[Company Representative] (Honda Motor Co Ltd): Can you hear me now? Yes. Thank you. I have two questions. First, about the full year, the 4 quarters plan. The year-end is about operating profit JPY 410, and you deduct JPY 280 billion for Q1. What is the reason for the decline? I'm asking the same question. I think it's related to the expenses. Compared to the past plans, please talk about the risks and opportunities. That is my question. I'd like to proceed to the next question. In the interim announcement, you talked about the EV incentives to quite an extent.

Shinji Aoyama: Yes.

Junya Yokoyama: Thank you. I have two questions. First, about the full year, the 4 quarters plan. The year-end is about operating profit JPY 410, and you deduct JPY 280 billion for Q1. What is the reason for the decline? I'm asking the same question. I think it's related to the expenses. Compared to the past plans, please talk about the risks and opportunities. That is my question. I'd like to proceed to the next question. In the interim announcement, you talked about the EV incentives to quite an extent.

Speaker Change:

Speaker Change: This is a new Doj and we are taking steps to protect Americans American citizens and Angel mom liked the mom standing right behind me here, you're going to hear from in a moment.

Speaker Change: New York has chosen to prioritize illegal aliens over American citizens. It stops it stops today as you know we sued Illinois.

Speaker Change: And.

Speaker Change: New York didn't listen so now you're next.

Speaker Change: Millions of illegal aliens with violent records have flooded into our communities, bringing violence and dudley drugs with them.

Speaker Change: With me today I am so proud to be joined by Tammy Noble's Tammy is an angel mom her beautiful daughter Kayla.

[Company Representative] (Honda Motor Co Ltd): I think there was a JPY 100 billion increase from the original plan. After Q3, as of February right now, North American incentive, how much increase are you seeing? Are you seeing that the incentive costs are increasing? I think of that, the consolidated for automotive is declining, so please explain about the incentives in North America. Thank you. You may see Yokoyama. I think you've asked two questions. But first about the Q4 plan and well, on the Q3 actual compared to the actual Q3, we are asking about what about the Q4? That was my understanding of your question here.

Junya Yokoyama: I think there was a JPY 100 billion increase from the original plan. After Q3, as of February right now, North American incentive, how much increase are you seeing? Are you seeing that the incentive costs are increasing? I think of that, the consolidated for automotive is declining, so please explain about the incentives in North America. Thank you.

Speaker Change: Kayla Hamilton was murdered by an M. S 13 member.

Speaker Change: In 2022.

Speaker Change: <unk> had just turned 20 years old just turned 20 years old.

Speaker Change: And she was raped and murdered by someone who should not have been in our country.

Shinji Aoyama: You may see Yokoyama. I think you've asked two questions. But first about the Q4 plan and well, on the Q3 actual compared to the actual Q3, we are asking about what about the Q4? That was my understanding of your question here.

Speaker Change: Yet he was released.

Speaker Change: Flown to Maryland.

Speaker Change: Were he committed this violent murder.

Speaker Change: I just want you to hear from.

Speaker Change: I want you to hear from Tami care me represents not only herself and her family, but all of the great Angel Moms around this country, who have suffered because of what the binding administration did and it is over.

[Company Representative] (Honda Motor Co Ltd): Basically speaking, the Q4, well, it's the end of our fiscal year. What increases is especially the R&D area and also SG&A. Because it's the end of the fiscal year, there are a number of things that are paid out and delivered to us, and so there's an increase in expenditure. Therefore, in the Q4, it tends to be the SG&A and R&D. They tend to be, well, roughly speaking, one stage higher. Well, it's JPY 390 billion or a little less than JPY 400 billion for the Q3 operating profit. Most of that is SG&A and R&D. I think that those are the main ones.

Shinji Aoyama: Basically speaking, the Q4, well, it's the end of our fiscal year. What increases is especially the R&D area and also SG&A. Because it's the end of the fiscal year, there are a number of things that are paid out and delivered to us, and so there's an increase in expenditure. Therefore, in the Q4, it tends to be the SG&A and R&D. They tend to be, well, roughly speaking, one stage higher. Well, it's JPY 390 billion or a little less than JPY 400 billion for the Q3 operating profit. Most of that is SG&A and R&D. I think that those are the main ones.

Speaker Change: Thank you for having me here today and being able to share.

Speaker Change: Kayla story.

Speaker Change: Her murderer was able to come across the border knowing that he was flagged as a M. S 13 gang member.

Speaker Change: And he had a criminal record in 2020 in El Salvador for Olympic gain activity. He came over as an unoccupied alien child, saying that he was afraid of gang activity in his country health.

Speaker Change: Health and human services called him a nice boy and he showed age appropriate behavior that fell so wrong. When he murdered my daughter. He ended up in Maryland, where he was able to rent a room in the same mobile home as her.

[Company Representative] (Honda Motor Co Ltd): North American incentive related items, well, slightly, the procurement cost is, in some cases, in other words, the finance business I'm talking about here, the procurement cost is increasing. That's included, but it's mostly the SG&A and R&D that will explain the numbers for Q4. Now, about North America and the incentives in North America, well, it has increased slightly now, but the procurement cost is slightly higher. This is also reflected partially. In total, I think, that it's just a marginal increase as a total, that is. Because we're talking about North America on the whole and the incentives of North America on the whole.

Shinji Aoyama: North American incentive related items, well, slightly, the procurement cost is, in some cases, in other words, the finance business I'm talking about here, the procurement cost is increasing. That's included, but it's mostly the SG&A and R&D that will explain the numbers for Q4. Now, about North America and the incentives in North America, well, it has increased slightly now, but the procurement cost is slightly higher. This is also reflected partially. In total, I think, that it's just a marginal increase as a total, that is. Because we're talking about North America on the whole and the incentives of North America on the whole.

Speaker Change: We thought it was a larger company that we're running out these rooms, but it turned out that it was a a another illegal immigrant who own these mobile homes and he knew Walter from El Salvador, He knew him and allowed him to rent a room with my child.

Speaker Change: Kayla just turned 20 years old three days before she was murder.

Speaker Change: Her murmur was only living there for five days before he viciously strangled her rapes her and left or on the floor like trash and robbed her of $6.

Speaker Change: I have been sharing her story for over two and a half years to bring change because this should have not have ever happened to kayla and it shouldn't be happening to other families being hurt by the border.

[Company Representative] (Honda Motor Co Ltd): EV incentives, if you just focus on EV incentives, in Q2, in the first half, I said there will be for full year an impact of JPY 100 billion. Just talking about that part, I do think that the number has slightly declined. In other words, we were able to reduce the incentive. Because of the sales unit volume and also the production, well, these are products being produced at GM, and the production, there is adjustment in the supply. Therefore, the final vis-à-vis the supply, there we have tried to reduce the supply, and therefore there is the need to make payments or discuss the possibility of making payments for compensation, et cetera.

Speaker Change: Yeah.

Shinji Aoyama: EV incentives, if you just focus on EV incentives, in Q2, in the first half, I said there will be for full year an impact of JPY 100 billion. Just talking about that part, I do think that the number has slightly declined. In other words, we were able to reduce the incentive. Because of the sales unit volume and also the production, well, these are products being produced at GM, and the production, there is adjustment in the supply. Therefore, the final vis-à-vis the supply, there we have tried to reduce the supply, and therefore there is the need to make payments or discuss the possibility of making payments for compensation, et cetera.

Speaker Change: Hum Homeland security and did not do their jobs. They did not check his background you know they did say that he was process. So if they process them. They knew that he was a gang member and still allow them here health and human services did not verified the sponsor and allowed him to go.

Speaker Change: Go where the sponsor that they don't even know goes cousin or his aunt.

Speaker Change: And he was able to lead the sponsors house to go live wherever to go wherever he won it.

Speaker Change: And I am gone in going to continue sharing Kayla story to help save others and they're bringing awareness of what was happening under the Biden Harris administration and I'm So thankful.

Speaker Change: For.

Speaker Change: For Pam having me here today and I'm, so thankful for the opportunity as I got from Trump and and any other platform you know people who allow me to share her story because this is going to end.

[Company Representative] (Honda Motor Co Ltd): Therefore, in Q4, these things could turn out to be on the negative side. Right now, we don't have any numbers at hand, and therefore, they're not reflected right now. There is the possibility of such negative factors in Q4. Is there any additional explanation? Well, yes, about Q4. Well, to begin with, compared to the original plan, I think you were asking what it looks like right now. For the full year forecast, with the exchange rate, we changed it to 152 yen. But we still have JPY 1,420 billion operating profit. I mean, it has been covered, offset by the motorcycle, but, and it has not been fully offset for the automotive.

Shinji Aoyama: Therefore, in Q4, these things could turn out to be on the negative side. Right now, we don't have any numbers at hand, and therefore, they're not reflected right now. There is the possibility of such negative factors in Q4.

Speaker Change: No other parents said suffer.

Speaker Change: By having their child murdered by somebody there shouldn't be.

Speaker Change: That shouldn't be here.

Speaker Change: And I'm going to continue you know sharing it Ann.

Speaker Change: For Kayla, you know and also for others. Thank you.

Junya Yokoyama: Is there any additional explanation?

Shinji Aoyama: Well, yes, about Q4. Well, to begin with, compared to the original plan, I think you were asking what it looks like right now. For the full year forecast, with the exchange rate, we changed it to 152 yen. But we still have JPY 1,420 billion operating profit. I mean, it has been covered, offset by the motorcycle, but, and it has not been fully offset for the automotive.

Speaker Change: Yes.

Speaker Change: And it's my understanding that he also admitted to other murders.

Speaker Change: Correct multiple cameras I wrote a letter.

Speaker Change: And it was in or something in jail that he committed four murders and too right.

Speaker Change: And that too we were letting walk into our country and that's why President Trump has directed us to stop.

Speaker Change: And if you don't comply with federal law, we will hold you accountable we did it turn Illinois strike one strike two as New York and if you are a state not complying with federal law journey, <unk> get ready and the great men and women of law enforcement are standing behind me today, we have F. B I D E F D a.

[Company Representative] (Honda Motor Co Ltd): Therefore, for the full year, in fact, sometimes will be a negative. The Q3, the motorcycle business did offset the automotive business. There was the weakening of the yen, and there was about JPY 30 billion compared to the budget, add-on to in the Q3. The full year negative has been more skewed to the Q4. That is the difference between the last time and this time. That is all. Thank you. Thank you very much, Mr. Yokoyama. Next question. Asahi Shimbun newspaper, Mr. Nishiyama, please.

Shinji Aoyama: Therefore, for the full year, in fact, sometimes will be a negative. The Q3, the motorcycle business did offset the automotive business. There was the weakening of the yen, and there was about JPY 30 billion compared to the budget, add-on to in the Q3. The full year negative has been more skewed to the Q4. That is the difference between the last time and this time. That is all.

Speaker Change: T F agents they put their lives on the line every single day to protect us.

Speaker Change: And what New York has they have greenlight laws, meaning theyre, giving a green light to any illegal alien in New York, where law enforcement officers cannot check their identity, if they pull them over a law enforcement officers do not have access to their background and if these great men and.

Junya Yokoyama: Thank you.

Operator: Thank you very much, Mr. Yokoyama. Next question. Asahi Shimbun newspaper, Mr. Nishiyama, please.

Speaker Change: Men pull over someone and don't have access to their background. They have no idea, who they're dealing with and it puts their lives on the line every single day violent criminals gang members drug traffickers human smugglers will no longer terrorize the American people and that is why we are here today.

Nishiyama: Hi. I'm Asahi Shimbun, Nishiyama.

Akihiro Nishiyama: Hi. I'm Asahi Shimbun, Nishiyama.

[Company Representative] (Honda Motor Co Ltd): Nishiyama from Asahi Shimbun. Can you hear me? Yes, please.

[Translator]: Nishiyama from Asahi Shimbun. Can you hear me?

Shinji Aoyama: Yes, please.

Speaker Change: You will be held account accountable if you do not follow federal law, it's over it ends and we're coming after you.

Nishiyama: Thank you for the explanation. I have two questions. First one, earlier, the question was already covering this point.

Akihiro Nishiyama: Thank you for the explanation. I have two questions. First one, earlier, the question was already covering this point.

Speaker Change: Questions.

Speaker Change: Sure.

David: David as far as the faucet Mount of Attorney Journal. Thank you and welcome to the Justice Department. Thank you I have a quick on topic and a quick off tougher children on topic.

Eiji Fujimura: Which is automobile business profitability as compared to motorcycles. In a way, our motorcycle business is very good, that is the factor behind. However, in order to improve the profitability of the automobile businesses, of course, there could be another separate discussion about business integration so on forth. What is your measures for improving profitability of the cars? In the last presentation, and that time around, there was a Trump's administration topics talked about a lot. A tariff for Canada and Mexico is yet to be risen. Of course, it is frozen for a month, but we don't know when it will be coming back again. What is your measure against that?

Akihiro Nishiyama: Which is automobile business profitability as compared to motorcycles. In a way, our motorcycle business is very good, that is the factor behind. However, in order to improve the profitability of the automobile businesses, of course, there could be another separate discussion about business integration so on forth. What is your measures for improving profitability of the cars? In the last presentation, and that time around, there was a Trump's administration topics talked about a lot. A tariff for Canada and Mexico is yet to be risen. Of course, it is frozen for a month, but we don't know when it will be coming back again. What is your measure against that?

David: In your executive order in your orders on the FERC you were here you talked about.

David: With the Justice Department for these sanctuary cities as you say, we are punished today youre putting people on notice.

David: Right now we're just losses, it's just going to go further what kind of punishment. We're talking about is there any ground to.

David: Charge individuals' charge politicians, how how far that's going to go well.

David: Well, we're going to see what they do next David we have sued them. All we've personally said the governor the attorney General Leticia, James and Mark Schroeder with DMV, because he has the greenlight laws. So what they have to do they have to start complying with federal law. If they don't we're going to appeal it and we will when they have.

David: To comply with Federal Law did you have a second question.

Eiji Fujimura: Once the tariff is in place, what is the impact on your businesses? Thank you very much, Mr. Nishiyama. Profitability of the automobile businesses. To start with, our recent situation, the revenue for this year. Looking at that revenue, of course, that may look a little lower, especially in comparison to that of our motorcycle business. However, in order to give you the precise answer, for instance, battery EV development cost and battery EVs sales volume is not so high in North America and in China. However, if battery EV businesses and those investment in the development for that is deducted from that, the remainder will be the ICE and hybrid businesses.

Eiji Fujimura: Once the tariff is in place, what is the impact on your businesses?

Speaker Change: Couple of question in this regard the judiciary Elon Musk, who has enormous influence on the Trump administration posted on exports there needs to be an immediate waiver of judicial impeachments not just one as the attorney general of the United States, How do you respond to that.

Shinji Aoyama: Thank you very much, Mr. Nishiyama. Profitability of the automobile businesses. To start with, our recent situation, the revenue for this year. Looking at that revenue, of course, that may look a little lower, especially in comparison to that of our motorcycle business. However, in order to give you the precise answer, for instance, battery EV development cost and battery EVs sales volume is not so high in North America and in China. However, if battery EV businesses and those investment in the development for that is deducted from that, the remainder will be the ICE and hybrid businesses.

Speaker Change: This work out in the courts before we talk about traditional impeachments. I mean these are just T. R. OS analysis time shouldn't be just play out yeah, I Havent seen Elon Musk tweet. He is a friend of mine. He is a great man I think he's very frustrated with what's happening in our federal government you know add.

Speaker Change: USAID alone they are giving out billions of dollars billions of dollars that should not be distributed we're going to back him up.

Speaker Change: We work our whole lives in this country and we all pay taxes in this country and for people to find out that $2 million is going to Guatemala for sex changes is outrageous and we're gonna backup Elon Musk every way we can that includes lawsuits against these people who are doing that and we will be successful.

Eiji Fujimura: For that part alone, actually, the situation for that part is not so different from the previous term. The profitability is about 8% for that part. Therefore, hybrid and then gasoline-based engine cars have profitability that is far improved from the previous situation. That is a kind of overall picture. Battery EVs, we are preparing for the business of the battery EVs now. For instance, GM production, that was the starting point for North America. Right next fiscal year, we are going to produce and launch the cars that we developed by ourselves in North America and US.

Speaker Change: Okay.

Shinji Aoyama: For that part alone, actually, the situation for that part is not so different from the previous term. The profitability is about 8% for that part. Therefore, hybrid and then gasoline-based engine cars have profitability that is far improved from the previous situation. That is a kind of overall picture. Battery EVs, we are preparing for the business of the battery EVs now. For instance, GM production, that was the starting point for North America. Right next fiscal year, we are going to produce and launch the cars that we developed by ourselves in North America and US.

Speaker Change: Impeachments, that's not going to happen now we're going to we're going to look at everything we're going to follow the law right now we're going to follow the process. These are federal judges with lifetime appointments, but they will be struck down ultimately by the Supreme Court of the United States. If the appellate courts don't follow the law as well.

Speaker Change: Hi, Hi, there nice can I also haven't on tapping and enough to check first of all can you just briefly walk us through what the legal claims are you're making in the buses.

Speaker Change: Absolutely so the greenlight laws are that.

Speaker Change: This is what the Greenlight law says its a green light to illegal immigration, which says they can comply that law is unconstitutional. They can't do that and what they've done is they have a tip off provision that requires new York's DMV commissioner to promptly inform any illegal.

Eiji Fujimura: As of today, I wouldn't say that will be making a very good business right at the start. However, including the preparation for the next gen cars, we are going to improve the businesses of the upcoming models. We will spend the development efforts with investment, which will improve the situation furthermore. Profitability of the automobile businesses from model year 2027 onwards, we already explained that in December last year, next generation hybrid starting around model year 2026 or 2027. The hybrid in those years will be of a much higher profitability, and also commercial values of those will be much better.

Speaker Change: Alien when a federal immigration agency has requested their information so think about the men and women in law enforcement behind me, that's basically that that's not a base of its tipping off an illegal alien and it's unconstitutional and that's why we filed this lawsuit and that's why we charge mark.

Shinji Aoyama: As of today, I wouldn't say that will be making a very good business right at the start. However, including the preparation for the next gen cars, we are going to improve the businesses of the upcoming models. We will spend the development efforts with investment, which will improve the situation furthermore. Profitability of the automobile businesses from model year 2027 onwards, we already explained that in December last year, next generation hybrid starting around model year 2026 or 2027. The hybrid in those years will be of a much higher profitability, and also commercial values of those will be much better.

Speaker Change: Schroeder too because he runs DMD Oh I'm sorry, you had a second question off topic question I wanted to ask first a mere attic Mayer Yankee as of at least a few moments ago asking why it still has not dropped back yet have you.

Speaker Change: Or other Doj leadership spoken to the acting U S attorney in Afghan wise since the Nemo was sent earlier this week and what will you do if she refuses to dropping I have not.

Speaker Change: Spoken to her I know are acting Dag Emil Beauvais has spoken to her and Chad Mizel may have spoken to her but that case should be dropped it was done at the director directive of Emil So that case should be dropped I did not know that it had not been dropped out but I would certainly look into that.

Eiji Fujimura: With them in place, it will improve the profitability of the entire businesses, including ICE cars and the hybrid. Trump administration after 1 March, the question is still hypothetical, I should say. However, if I want to try to answer your question squarely, thank you for your question, of course. Suppose in 1 March, 25% tariff is started, if that comes in place. The impact on the business up until March of this year, there could be perhaps a JPY 20 billion plus impact. That is the assumption as of today. However, it is a super short-term impact, right?

Shinji Aoyama: With them in place, it will improve the profitability of the entire businesses, including ICE cars and the hybrid. Trump administration after 1 March, the question is still hypothetical, I should say. However, if I want to try to answer your question squarely, thank you for your question, of course. Suppose in 1 March, 25% tariff is started, if that comes in place. The impact on the business up until March of this year, there could be perhaps a JPY 20 billion plus impact. That is the assumption as of today. However, it is a super short-term impact, right?

Speaker Change: Okay.

Speaker Change: I come home and suggested this week that someone from within the FBI may be leaking information about nice rates and as such could be putting officers lives at risk has the Doj gotten any closer to determining if these leaks are coming from within the MTI and what will the consequences would be if they can identify.

Speaker Change: Leaders from the FBI.

Speaker Change: Excuse me well first I can't talk about anything that is ongoing and that is ongoing and it's really for the similar reasons of what I said earlier, the great men and women in law enforcement standing behind me today, they deserve they must be protected and anytime anyone leaks are tips off.

Speaker Change: Anything regarding a pending investigation that jeopardizes lives, you're telling a bad guy what's about to happen it could it could jeopardize the lives of all the men and women in law enforcement, we will not stand for it we will find you were going to investigate it no matter what agency. It came from we don't know.

Eiji Fujimura: Production in Mexico, Canada. We have those productions in there, and we will try to bring over those product from those two areas to the US earlier, perhaps in February. That is our actions in the short term. In terms of the tariff increase, again, in the big picture, of course, every year the situation is rather different. However, about 1/3 or higher than 1/3 of the businesses are using the components or product brought down from Canada and Mexico. The remainder, about 2/3, are produced in the US.

Shinji Aoyama: Production in Mexico, Canada. We have those productions in there, and we will try to bring over those product from those two areas to the US earlier, perhaps in February. That is our actions in the short term. In terms of the tariff increase, again, in the big picture, of course, every year the situation is rather different. However, about 1/3 or higher than 1/3 of the businesses are using the components or product brought down from Canada and Mexico. The remainder, about 2/3, are produced in the US.

Speaker Change: For certain we have an open investigation, so I can't talk about it in detail, but we will do everything in our power to hold you accountable and it is a crime and you will be prosecuted when we find you.

Speaker Change: Number one more.

Speaker Change: Okay.

Speaker Change: Hi, Matt.

Speaker Change: General. Thank you so much for your time I was also interested in hearing specifically what the interactions have been like with mayor Adam and I know he has a little bit of a different tone than some of the other Democrats and higher state and then also Denver Mayor Mike Johnson.

For it before the President Trump went back in the office. He had issued some words about our potential stand up and walk that back. So I was curious to see what things have been like out of New York City, and Denver official Yeah, well were hoping that I'm in New York Mayor Adams is going to cooperate with us with the sanctuary cities in the illegal alien.

Eiji Fujimura: Therefore, our second highest local content of the production of the vehicles next to Ford in the United States. The question is, how effective would that policy become? In fact, it is very difficult to visualize it. At this moment, what we can do is to do something in the short term, which is about current production based on the current model mix and production in our Mexico and Canadian factories. We could reorganize the mix, product mix of the productions over there. This is something we can do short term, but in a midterm perspective, we could change the allocation of the model mix in different ways. We are preparing for that too.

Shinji Aoyama: Therefore, our second highest local content of the production of the vehicles next to Ford in the United States. The question is, how effective would that policy become? In fact, it is very difficult to visualize it. At this moment, what we can do is to do something in the short term, which is about current production based on the current model mix and production in our Mexico and Canadian factories. We could reorganize the mix, product mix of the productions over there. This is something we can do short term, but in a midterm perspective, we could change the allocation of the model mix in different ways. We are preparing for that too.

Speaker Change: And has the mayor in Colorado than cooperating doing now I believe he might have now yeah. I believe Colorado is now cooperating that's what we want we don't want to Sue you. We don't want to prosecute people, we want people to comply with the law. This is very simple and M. S 13 member murdered her daughter that's.

Speaker Change: Happening throughout this country, we have one angel mom is too many and we have angel moms throughout this country, who should not be going through this comply with the law. Even if this is the last thing we want to be doing we want to be out there all of us fighting violent crime yeah, we're fighting.

Speaker Change: Illegal aliens and that ends and it's going to end today.

Eiji Fujimura: However, we have possible actions and the consideration for short term, midterm, long term, so forth, but we don't really give a go at this moment for any of the actions on the table today. Fujimura-san, anything to add, please? Again, the tariff. What is the approximate estimate of the impact based on the simple calculation based on the CBU complementary supplies? In the United States, we have the next to Ford, a sort of local content of the productions, meaning 60% of the products are produced in the US. We have some import from Japan as well, but 40% of those are supported by the production in Mexico and Canada.

Shinji Aoyama: However, we have possible actions and the consideration for short term, midterm, long term, so forth, but we don't really give a go at this moment for any of the actions on the table today. Fujimura-san, anything to add, please?

Speaker Change: The portfolio of our four guys. Thank you. Thank you. Thank you all right.

Speaker Change: Yes.

Eiji Fujimura: Again, the tariff. What is the approximate estimate of the impact based on the simple calculation based on the CBU complementary supplies? In the United States, we have the next to Ford, a sort of local content of the productions, meaning 60% of the products are produced in the US. We have some import from Japan as well, but 40% of those are supported by the production in Mexico and Canada.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: We were a little bit late.

Speaker Change: As in the West wing flaring unhealthy gathered.

Speaker Change: Okay, great. Thanks.

Speaker Change: Thanks.

Speaker Change: In Asia with us with a delay.

Speaker Change: We're here today, because we have filed charges against the state of New York, We are all charges against Kathy.

Speaker Change: We have all charges against what he said James and Mark Schroeder, who is with D. M D.

Speaker Change: This is a new Doj and we are taking steps to protect Americans American citizens and Angel long life long standing right behind me here Youre going to hear from at the moment.

Speaker Change: New York has chosen to prioritize illegal aliens over American citizens is stops it stops today as you know we see Illinois.

Eiji Fujimura: Of course, those two countries are also dependent on the US too. At the moment, we are talking about the sales in US, which pertains to the production in Mexico and Canada. Last year, it was about 550,000. Canada is dependent on the US for 40,000, and Mexico is dependent on 20,000. That adds up to 610,000 units. Of course that depends on the type of models. Suppose cost $30,000 for the cost of those cars and then 25% of the tariff to that amount of the money, that way you can calculate impact on the cars.

Speaker Change: And.

Speaker Change: New York didn't listen so now euronext.

Speaker Change: Millions of illegal aliens violent records of blood into our community, bringing violence and download draw with them.

Speaker Change: With me today I am so proud to be joined by Tammy Newbold.

Speaker Change: Tammy is an age old models.

Speaker Change: Our beautiful daughter Kayla.

Speaker Change: Kayla Hamilton with murdered by an M. S 13 member in 2022.

Speaker Change: Kayla had just turned 20 years old just turned 20 years old.

Eiji Fujimura: Plus you can think about others like steels and aluminum, other miscellaneous materials and so forth. That could be like a 4 digits or high end of the 4 digits figures, I suppose, as much as I could expect as an impact. My colleague Aoyama-san said about our short, mid, long term measures, actions, and when should we trigger to start those actions. Of course, we have to watch carefully what's going on then decide when to start with that. Thank you.

Speaker Change: She was raped and murdered by someone who should not have been in our country.

Speaker Change: Yes, he was released.

Speaker Change: Floater, Maryland.

Speaker Change: Were he committed violent murder.

Speaker Change: I just want you to hear from.

Once you hear from Herring Kerry represents not only herself and her family all of the great Angel mom around this country, who have suffered because of weather by the administration.

Speaker Change: Is over.

Speaker Change: Thank you for having me here today and being able to share.

Operator: Thank you very much, Mr. Nishiyama. Next question, please. From Yomiuri Shimbun, Narahashi-san, please.

Speaker Change: Kayla story.

Speaker Change: Heart Murmur was able to come across the border knowing that he was flagged as a <unk> 13 gain member and he had an incredible record in 2020 in El Salvador for Elisa gang activity. He came over under unoccupied alien child, saying that he was afraid of.

[Company Representative] (Honda Motor Co Ltd): Narahashi from The Yomiuri Shimbun newspaper. Thank you. About the motorcycle sales in Thailand, is declining again from the previous quarter. I think it's due to market conditions. What impact does this have on your automobile business? That's my first question. The second question, about repurchasing your shares. Well, as of December, yes, as there was the talk of the business integration with Nissan, and based on that, well, now that this has been scrapped, what is the reason for continuing to do the repurchase?

Daisuke Narahashi: Narahashi from The Yomiuri Shimbun newspaper. Thank you. About the motorcycle sales in Thailand, is declining again from the previous quarter. I think it's due to market conditions. What impact does this have on your automobile business? That's my first question. The second question, about repurchasing your shares. Well, as of December, yes, as there was the talk of the business integration with Nissan, and based on that, well, now that this has been scrapped, what is the reason for continuing to do the repurchase?

Speaker Change: Activity in this country Hell.

Speaker Change: Health and human services called him, a nice boy and he's shown age appropriate behavior.

Speaker Change: That fell so wrong way he murdered my daughter, he ended up in Maryland, where he was able to rent a room in the same more home as her.

Speaker Change: We thought it was a larger company that we're bringing out these rooms, but it turned out that it was a a another illegal immigrants who own these mobile home and he knew Walter from El Salvador, He knew him and allow him to earn with my child.

Eiji Fujimura: Thank you, Mr. Narahashi. Well, about your first question. Well, the impact on automotive business, right?

Shinji Aoyama: Thank you, Mr. Narahashi. Well, about your first question. Well, the impact on automotive business, right?

Speaker Change: K law, just turned 20 years old three days before she was murdered.

[Company Representative] (Honda Motor Co Ltd): Yes.

Daisuke Narahashi: Yes.

Eiji Fujimura: Okay.

Shinji Aoyama: Okay.

Speaker Change: Her murmur was only living there for five days before you visually strangled her rates are and loved her on the floor like trash and Roger of $6.

[Company Representative] (Honda Motor Co Ltd): Yes. What is your outlook of the Thai market and?

Daisuke Narahashi: Yes. What is your outlook of the Thai market and?

Eiji Fujimura: Okay. I understand. Motorcycle sales in Thailand, this year's numbers, compared to last year, is quite low. That's for sure. This apparently is because of the credit, the difficulty in financing. That is the cause. That is clear. But about the motorcycle sales in Thailand, just looking at that, towards the end of last year, well, we have for the low income bracket seen that the income tax was refunded and the Thai motorcycle sales was better. But still it's quite significantly low year on year.

Shinji Aoyama: Okay. I understand. Motorcycle sales in Thailand, this year's numbers, compared to last year, is quite low. That's for sure. This apparently is because of the credit, the difficulty in financing. That is the cause. That is clear. But about the motorcycle sales in Thailand, just looking at that, towards the end of last year, well, we have for the low income bracket seen that the income tax was refunded and the Thai motorcycle sales was better. But still it's quite significantly low year on year.

Speaker Change: I have been sharing her story for over two and a half years to bring change because this should have not have ever happen to kayla and there shouldn't be having to other families being hurt by the border.

Speaker Change: Homeland security do not do their jobs, they did not check his background.

Speaker Change: They did say that he was process so as they process them. They knew that he was a gain member and still allowed in here health and human services did not verify the sponsor and allow him to go with a sponsor that they don't even know doses, causing or his ann.

Speaker Change: And he was able to leave the sponsors house to go live wherever to go where we want it.

Speaker Change: And I am going go into continue sharing Halo story to help save others and to bring awareness of what was happening under the Biogen hairs administration and I'm So thankful.

Eiji Fujimura: Now about automobile and related to the financing and difficulty to secure loans, I think that this is continuing and therefore the market in both the motorcycle and automobile market in Thailand it has been on the decline for the past year or so. Given such circumstances, however, as for the motorcycle business, for the Thai market, we have an 80% market share and therefore we want to maintain this share and wait for the market to recover, should I say. As for the automotive business, on a macro level-

Shinji Aoyama: Now about automobile and related to the financing and difficulty to secure loans, I think that this is continuing and therefore the market in both the motorcycle and automobile market in Thailand it has been on the decline for the past year or so. Given such circumstances, however, as for the motorcycle business, for the Thai market, we have an 80% market share and therefore we want to maintain this share and wait for the market to recover, should I say. As for the automotive business, on a macro level-

Speaker Change: For.

Speaker Change: For handheld any here today and I'm, so thankful for the opportunity as I got from Trump and any other platform you know people, who allow me to share her story.

Speaker Change: This is going to end.

Speaker Change: No other parents should suffer.

Speaker Change: By having their child murdered by somebody there shouldn't be that.

Speaker Change: That shouldn't be here.

Speaker Change: And I'm I continue.

Speaker Change: <unk> and <unk>.

Speaker Change: For Kayla you know.

Speaker Change: And also for others. Thank you.

Speaker Change: Yes.

Speaker Change: And it's my understanding that he also admitted.

Speaker Change: Correct mobile game.

Speaker Change: Leather.

Speaker Change: And with that are suffering in jail that he can do the former than two rates.

Speaker Change: And that too we were letting walk into our country and that's why President Trump has directed us to stop.

[Company Representative] (Honda Motor Co Ltd): The loan screening is very tough and it's difficult to secure loans, but in addition to that, for the automotive business, there are the Chinese OEM, which are introducing EVs. I think that this has had an impact. For battery EV, within the market, about 20% or so are in the passenger vehicle segment, EVs, battery EVs. So it's not increasing, but it's rather sluggish in Thailand, the battery EVs. We also have been making effort to sell BEVs and we want to work harder next fiscal year. About your second question, about the repurchase of our shares and why we're continuing to do so, well...

Shinji Aoyama: The loan screening is very tough and it's difficult to secure loans, but in addition to that, for the automotive business, there are the Chinese OEM, which are introducing EVs. I think that this has had an impact. For battery EV, within the market, about 20% or so are in the passenger vehicle segment, EVs, battery EVs. So it's not increasing, but it's rather sluggish in Thailand, the battery EVs. We also have been making effort to sell BEVs and we want to work harder next fiscal year. About your second question, about the repurchase of our shares and why we're continuing to do so, well...

Speaker Change: And if you don't comply with federal law, we will hold you accountable, we did it to our Illinois stride one stride two as New York and if you are at stake now complying with that ROA <unk> get ready and the great men and women of law enforcement are standing behind me today, we have F. B I D E F D a.

Speaker Change: ACS agents they put their lives on the line every single day to protect us.

Speaker Change: And what New York has they have green light loss, meaning, they're giving a green light to any illegal aliens in New York, where one unfortunate officer cannot shut their identity, if they pull them over law enforcement officers do not have access to their background and if these great mineral.

Speaker Change: Women poll over someone and don't have access to their background. They have no idea, who they're dealing with and have put their lives on the line every single day via criminal gang member drug traffickers human smugglers will no longer terrorize the American people and that is why we are here today.

[Company Representative] (Honda Motor Co Ltd): Well, to begin with, on 23 December, we announced that we will start consultation for possible business integration, and at the same time, this resolution was made and decided. While the talks continue, we try to ensure that this will not compromise any insider trading, and therefore, that is the reason why we had that resolution and made the announcement. It was just a matter of timing. I'm talking about the size of the repurchase, and this is accumulation from the past, and we want to optimize our equity ratio. Therefore, we believe that the timing at which this was resolved was just at the time when we were starting the business integration talks with Nissan.

Shinji Aoyama: Well, to begin with, on 23 December, we announced that we will start consultation for possible business integration, and at the same time, this resolution was made and decided. While the talks continue, we try to ensure that this will not compromise any insider trading, and therefore, that is the reason why we had that resolution and made the announcement. It was just a matter of timing. I'm talking about the size of the repurchase, and this is accumulation from the past, and we want to optimize our equity ratio. Therefore, we believe that the timing at which this was resolved was just at the time when we were starting the business integration talks with Nissan.

Speaker Change: You will be held accountable if you do not follow federal law is over and we're coming after you.

Speaker Change: Question.

Speaker Change: Two questions.

Speaker Change: The amount of attorney General, Thank you and welcome to the Jefferies.

Speaker Change: Thank you.

Speaker Change: On the call.

Speaker Change: Sure.

Speaker Change: Thank you.

Speaker Change: Sure.

Speaker Change: Perfect.

Speaker Change: With the Justice Department.

Speaker Change: Thanks.

Speaker Change: Yes.

Speaker Change: Right now.

Speaker Change: What kind of punishment.

Speaker Change: Gross.

[Company Representative] (Honda Motor Co Ltd): The size of the repurchase and the schedule of the buyback, well, it was high time for us to do it, so it was just a matter of timing. This was due to the need to optimize, and that was coming from the past. We will continue to buy back and nothing will change. Mr. Fujimura? Well, let me add some numbers here. As of the end of December, our net cash, it was JPY 3.8 trillion, and so it's about 2.5 months' worth, from the beginning of the month. Due to the Lehman Brothers crisis and others we have experienced, from that experience, one month's worth of cash is something that we want to hold normally.

Shinji Aoyama: The size of the repurchase and the schedule of the buyback, well, it was high time for us to do it, so it was just a matter of timing. This was due to the need to optimize, and that was coming from the past. We will continue to buy back and nothing will change. Mr. Fujimura? Well, let me add some numbers here. As of the end of December, our net cash, it was JPY 3.8 trillion, and so it's about 2.5 months' worth, from the beginning of the month. Due to the Lehman Brothers crisis and others we have experienced, from that experience, one month's worth of cash is something that we want to hold normally.

Speaker Change: Chart.

Speaker Change: Paul.

Speaker Change: How far.

Speaker Change: Well, we're going to see what they do next day, we have suite of always personally third the governor the attorney General Leticia, Jamie and Mark Schroeder with DMD, because he has the greenlight bonds. So when they have to do they have to start complying with federal law.

Speaker Change: We're going to appeal, it and we will where they have to comply with federal law does your second question.

Speaker Change: Good question.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: Right.

Speaker Change: Export.

Speaker Change: Media.

Speaker Change: It's not just one.

Turning to Germany, United States, how do you respond to that process worked out in the courts.

Speaker Change: Before we talk about traditional impeachment.

Speaker Change: Euro zone.

Oh, yes, I havent seen Elon musk tweet. He is a friend of mine. He is a great man I think he's very frustrated with what's happening in our federal government.

[Company Representative] (Honda Motor Co Ltd): I guess that it was 1.5 months' worth rather. We want to make appropriate our equity ratio. PBR onefold, that was our target. Instead of holding cash at hand, we want to return to our shareholders, and therefore, we have decided for a buyback of JPY 1.1 trillion. As Masayoshi has explained, this was not because of the business integration talks with Nissan. This JPY 1.1 trillion program, once it is completed, we will have a one-month level of cash at hand. We think that this is the appropriate level. Thank you. Thank you.

Shinji Aoyama: I guess that it was 1.5 months' worth rather. We want to make appropriate our equity ratio. PBR onefold, that was our target. Instead of holding cash at hand, we want to return to our shareholders, and therefore, we have decided for a buyback of JPY 1.1 trillion. As Masayoshi has explained, this was not because of the business integration talks with Nissan. This JPY 1.1 trillion program, once it is completed, we will have a one-month level of cash at hand. We think that this is the appropriate level. Thank you.

Speaker Change:

Speaker Change: USA alone they are giving now billions of dollars billions of dollars that should not be distributed we're going to back him up.

Speaker Change: We worked our whole lives in this country and we are paying taxes in this country and for people to find out that $2 million in Guatemala for Saks change it is outrageous.

Speaker Change: And we're going to back up your online everywhere, we can and that includes lawsuits against these people who are doing that and we will be successful.

Speaker Change: Yeah.

Speaker Change: That's not going to happen now we're going to we're going to look at everything we're going to follow the wall right now we're going to follow the process. These are federal judges with lifetime appointment, but they will be struck down ultimately by the Supreme Court of the United States. If the appellate court staff all of the law as well.

Daisuke Narahashi: Thank you.

Speaker Change: Sure.

Speaker Change: Hi.

[Company Representative] (Honda Motor Co Ltd): Thank you, Mr. Narahashi. Next, question from Nikkei.

Speaker Change: Sure.

Shinji Aoyama: Thank you, Mr. Narahashi. Next, question from Nikkei.

Can you just briefly walk us through what the legal claims are domain.

Speaker Change: Yeah.

Eiji Fujimura: Noguchi from Nikkei. Can you hear me?

Kazuhiro Noguchi: Noguchi from Nikkei. Can you hear me?

Speaker Change: Absolutely so.

Speaker Change: The green bars are that this is what the green line losses is a greenlighted illegal immigration, which said they can comply that was unconstitutional.

Speaker Change: Can't do that and what they've done is they have a tip off provision that requires New York DMV Commissioner to promptly inform any illegal aliens when a federal immigration agency has requested their information to think about.

[Company Representative] (Honda Motor Co Ltd): Yes.

Shinji Aoyama: Yes.

Eiji Fujimura: Thank you. Motorcycle and automobile businesses, going forward, what is the concept or ideas for the operating profit for them? For the time being, EV development and SG&A costs are prioritized, and automobile profitability is not growing, maybe suppressed a bit. Also with the motorcycle businesses, we have electrification going on, so how much would that grow given the good marketplace too? However, overall, if you have a mixture of the two businesses, do you think we can grow them together continually going forward? Would that be suppressed a bit? Are there any opportunities to grow too? That is the question.

Kazuhiro Noguchi: Thank you. Motorcycle and automobile businesses, going forward, what is the concept or ideas for the operating profit for them? For the time being, EV development and SG&A costs are prioritized, and automobile profitability is not growing, maybe suppressed a bit. Also with the motorcycle businesses, we have electrification going on, so how much would that grow given the good marketplace too? However, overall, if you have a mixture of the two businesses, do you think we can grow them together continually going forward? Would that be suppressed a bit? Are there any opportunities to grow too? That is the question.

Speaker Change: The men and women in law enforcement behind me, that's basically that.

Speaker Change: Basically it's tipping off an illegal alien edits unconstitutional and that's why we filed this lawsuit and that's why we chart Mark Schroeder too because he runs.

Speaker Change: Oh I'm sorry, your second question.

Speaker Change: The question I wanted to ask a mere attic there yeah.

Speaker Change: At least a few moments ago, asking lifestyle has not dropped.

Speaker Change: Have you.

Speaker Change: Or other Doj leadership has spoken to asking you a turnkey and asking why.

Speaker Change: Earlier this week and what will you do it for few distracting I have not.

Speaker Change: Further into her I know are asking that a more valet has spoken to her and catalyze alameda spoken to her but backache shared these roster Dennis a director director of Emil said, our case should be drawn I did not know that it has not been dropped yet and I will certainly look into that.

[Company Representative] (Honda Motor Co Ltd): Thank you, Mr. Noguchi. To start with the motorcycle businesses, in fact, it is for the automobile too, the progress of battery EVs and the progress toward that. I think the assumption of that speed is one thing that we have to mind about. However, it is kind of difficult to anticipate the speed of that at this moment because of the North America policy situation, and these things are quite unclear now. However, let's start with motorcycle businesses. Electrification of the motorcycles is, as compared to that of automobiles-

Shinji Aoyama: Thank you, Mr. Noguchi. To start with the motorcycle businesses, in fact, it is for the automobile too, the progress of battery EVs and the progress toward that. I think the assumption of that speed is one thing that we have to mind about. However, it is kind of difficult to anticipate the speed of that at this moment because of the North America policy situation, and these things are quite unclear now. However, let's start with motorcycle businesses. Electrification of the motorcycles is, as compared to that of automobiles-

Speaker Change: Alright.

Tony: Hi, Tony.

Speaker Change: Only suggested this week.

From within the STR, maybe linking information about nice rate and as such he put it.

Speaker Change: Has.

Speaker Change: Has the Doj gotten any closer to determine if these links are coming from within the ipi and what will the consequences.

Speaker Change: You can identify the reverse from the FBI.

Speaker Change: Well first I can't talk about anything that is ongoing and that is ongoing and it's really for the similar reasons, what I said earlier, the great men and women in law enforcement standing behind me today.

Eiji Fujimura: We have investment on those for motorcycle and the amount of the investment is not very big as compared to that of automobiles. With that, we are successfully electrifying motorcycles based on the past technologies of the engines and frames. We are working on similarly with the battery EVs. We best combine the technologies and so forth. That way we can have the restricted or development cost those successful. As we said, with the automobiles, the battery EV cost for the cars is quite a lot, but motorcycle and it is not that much.

Shinji Aoyama: We have investment on those for motorcycle and the amount of the investment is not very big as compared to that of automobiles. With that, we are successfully electrifying motorcycles based on the past technologies of the engines and frames. We are working on similarly with the battery EVs. We best combine the technologies and so forth. That way we can have the restricted or development cost those successful. As we said, with the automobiles, the battery EV cost for the cars is quite a lot, but motorcycle and it is not that much.

Speaker Change: They deserve they must be protected if anytime anywhere leaks or chips or any.

Regarding our pending investigation that jeopardizes life, you're telling a bad guy what's about to happen. It could jeopardize the lives of all the men and women in law enforcement, we will not stand for it we will find you were going to investigate it no matter what agency at Hambro, We don't know.

Speaker Change: For certain we have an open investigation, so I can't talk about it in detail, but we will do everything in our power to all of you.

Speaker Change: And it is a crime and you will be prosecuted when we find here.

Speaker Change: One more.

Speaker Change: Yes.

Speaker Change: Thank you so much for your time.

Speaker Change: Specifically, what the interactions have been like with mayor.

Eiji Fujimura: Looking at the global motorcycle market today, I think we still have the growth potential in India, Brazil in the short while. We still have markets there, the Philippines, Pakistan, Bangladesh, for instance. We still have lots of market to grow into. In that regard, even with the ICE engine-based vehicles, we will be able to maintain high level of the profitability for the motorcycle businesses for quite a while. For the automobiles, we covered that maybe the first question, but we have the gasoline-based engines, including hybrid, which have the 8% profitability today.

Shinji Aoyama: Looking at the global motorcycle market today, I think we still have the growth potential in India, Brazil in the short while. We still have markets there, the Philippines, Pakistan, Bangladesh, for instance. We still have lots of market to grow into. In that regard, even with the ICE engine-based vehicles, we will be able to maintain high level of the profitability for the motorcycle businesses for quite a while. For the automobiles, we covered that maybe the first question, but we have the gasoline-based engines, including hybrid, which have the 8% profitability today.

Speaker Change: And I know he has a little bit of a different tone than some of the other Democrats and the entire state and then also Denver Mayor Mike Johnston.

Speaker Change: Britt before the President Trump went back in the office. He had issued some words about a potential bandarban walk that back. So I'm curious to see what things have been like out of New York City, and Denver official yeah, well, we're having that in your mirror out is this going to cooperate with us was essentially or a series of illegal aliens.

Speaker Change: And has the mirror in Colorado than cooperating we now I believe he might have yeah. I believe Colorado is now cooperating that's what we want we don't want to Sue you. We don't want to prosecute people, we want people to comply with the law. This is very simple and M. S 13 member murdered her daughter that's had.

Eiji Fujimura: With the next generation hybrid comes in 2029 or 2027 or 2028, excuse me, those profitability will be growing into the two digits about 10%. Therefore, so profitability or business of the battery EV, what would the business be like at this situation? We are going to launch battery EVs newly going forward. Of course, we will have improvement as compared to the current situation in the United States. However, as I said, currently the visibility is quite poor.

Shinji Aoyama: With the next generation hybrid comes in 2029 or 2027 or 2028, excuse me, those profitability will be growing into the two digits about 10%. Therefore, so profitability or business of the battery EV, what would the business be like at this situation? We are going to launch battery EVs newly going forward. Of course, we will have improvement as compared to the current situation in the United States. However, as I said, currently the visibility is quite poor.

Speaker Change: Any throughout this country, we have one Asia one is too many and we have angel mom throughout this country, who should not be going through this comply with the law.

Speaker Change: The last thing we want to be doing we want to be out there all of us finding violent crime, yeah, we're finding illegal aliens and that in and it's got ahead today.

Speaker Change: All right.

Speaker Change: Thank you. Thank you. Thank you all.

Eiji Fujimura: For instance, our IRA income tax deductions, so forth, we thought about LGES battery plans, so forth, would be utilized with the assumption of a $7,500 reduction of the taxes based on our IRA. That was the original assumption. Now the question is what will become of it eventually in this picture. We can't really say what's gonna happen. Therefore, it is very difficult to tell you the business outlook. But nevertheless, we like to maintain the high level of profitability with the ICE and current gasoline-based vehicles.

Shinji Aoyama: For instance, our IRA income tax deductions, so forth, we thought about LGES battery plans, so forth, would be utilized with the assumption of a $7,500 reduction of the taxes based on our IRA. That was the original assumption. Now the question is what will become of it eventually in this picture. We can't really say what's gonna happen. Therefore, it is very difficult to tell you the business outlook. But nevertheless, we like to maintain the high level of profitability with the ICE and current gasoline-based vehicles.

Speaker Change: For the ones, who get it done the most important part is the one you need now and the best partner is the one who can deliver that's why millions of maintenance or repair Pros Trust Grainger, because we have professional great supplies for every industry, even hard to find products and we have same day pickup and next day delivery on most orders.

Speaker Change: But most importantly, we have an unwavering commitment to help keep you up and running call quick Grainger dot com or just stop by Grainger for the ones who get it done.

Speaker Change: Yeah.

Speaker Change: Phone with President Zelinski of Ukraine has truth is as follows I just spoke to president Dolinski of Ukraine. The conversation went very well he like President Putin wants to make peace, we discussed a variety of topics having to do with the war, but mostly the meeting that is being set up on Friday immune.

Eiji Fujimura: In the meantime, with the battery-based EVs vehicles, we could be more flexible to react to any given circumstances as we go. Thank you very much.

Shinji Aoyama: In the meantime, with the battery-based EVs vehicles, we could be more flexible to react to any given circumstances as we go. Thank you very much.

Speaker Change: Nick where vice President J D Vance and Secretary of Secretary of State Marco Rubio will lead the delegation I am hopeful that the results of that meeting will be positive. It is time to stop this ridiculous war, where there has been massive and totally unnecessary death and destruction God bless the people of Russia and Ukraine.

Operator: Thank you very much, Mr. Noguchi. Next question, please. From Mr. Mizutori from The Daily Automotive News, please.

Speaker Change: I myself just spoke to the president about these calls and he told me to tell all of you. They were very good calls they were very positive and the administration is wholeheartedly committed to a peace deal to you and once and for all the Russia, Ukraine more and more on that later I'm sure you'll have more questions to ask and this week. The president has continued to do.

[Company Representative] (Honda Motor Co Ltd): Mizutori, speaking. Can you hear me? Yes.

[Analyst 1] (Japan Automotive Daily): Mizutori, speaking. Can you hear me?

Shinji Aoyama: Yes.

Operator: Thank you. I think you're muted now. We cannot hear you.

[Analyst 1] (Japan Automotive Daily): Thank you.

Shinji Aoyama: I think you're muted now. We cannot hear you.

Speaker Change: A liver on his promises to the American people. According to new polling that was released at the beginning of this week by CBS news and overwhelming 70% of Americans Sad that President Trump is following through on what he pledged to do during his historic campaign. The Paul also revealed that Americans see president shrunk as a tough energen.

[Company Representative] (Honda Motor Co Ltd): Can you hear me now?

[Analyst 1] (Japan Automotive Daily): Can you hear me now?

Operator: Yes. Please.

Shinji Aoyama: Yes. Please.

[Company Representative] (Honda Motor Co Ltd): Thank you. The first question about China. So, we see that there is a 40% year-on-year decline from April to December and the Ye series, and that was thought to be promising. There has been a bit longer time required for ensuring the quality and therefore locally the PHEV market is developing. How are you trying to make a recovery in China? That's my first question. About the number, I want to make some confirmation. The full year the capital expenditure is JPY 70 billion or so less, I think. Is this due to the revisiting of the exchange rate? Is there anything that you postponed in terms of your CapEx?

[Analyst 1] (Japan Automotive Daily): Thank you. The first question about China. So, we see that there is a 40% year-on-year decline from April to December and the Ye series, and that was thought to be promising. There has been a bit longer time required for ensuring the quality and therefore locally the PHEV market is developing. How are you trying to make a recovery in China? That's my first question. About the number, I want to make some confirmation. The full year the capital expenditure is JPY 70 billion or so less, I think. Is this due to the revisiting of the exchange rate? Is there anything that you postponed in terms of your CapEx?

Speaker Change: <unk> focused and effective leader fighting hard to improve their lives and our country and yesterday in particular was a truly special day for the United States of America. Thanks to the Great leadership of President Trump and his strong and tough leadership of President Trump, Mark Fogel and American teacher detained.

Speaker Change: Russia was returned to American soil and met with the President here at the White House last night special envoy, Steve wet cough and the rest of President Trump's incredible National security team helped to negotiate the exchange that secured Mark Volvo's release. This event shows a good faith effort from Russia, and its a sign as I just said that we are.

Speaker Change: Moving in the right direction to end this brutal war.

Speaker Change: <unk> now seen Fogle marks the 95 year old mother was understandably very worried that she would never see her son again after his arrest in 2020 one.

Eiji Fujimura: Mr. Mizutori, first of all, thank you very much for the question. Now, first, about the Ye series. Yes, the quality, well, yes, in the preparation for mass production, I think that we were a month or two behind schedule, that is for sure. There wasn't any significant problem. From March to April, we will be launching. I think that this is the grand plan. The MSRP, the final decision has not been made, MSRP. The current market, including the incentives, the situation is quite tough.

Shinji Aoyama: Mr. Mizutori, first of all, thank you very much for the question. Now, first, about the Ye series. Yes, the quality, well, yes, in the preparation for mass production, I think that we were a month or two behind schedule, that is for sure. There wasn't any significant problem. From March to April, we will be launching. I think that this is the grand plan. The MSRP, the final decision has not been made, MSRP. The current market, including the incentives, the situation is quite tough.

Speaker Change: This film is actually slated to join President Trump us onstage at the July 13th Butler, Pennsylvania rally to speak out for Mark and then the infamous assassination attempt against President Trump took place, but that day before the rally President Trump promised Mark smother that when he returns to the White house.

Speaker Change: He would bring her son home.

Speaker Change: God save President lifetime that President Trump's life on that day in Butler, Pennsylvania, and now Mark Saville as back home safely with his family as a result God is good.

Speaker Change: The President also continues to bring back common sense to our government. This week he signed an ear to end the procurement enforced use of paper straws taxpayer dollars were wasted on these nonfunctional and massively unpopular products for no. Other reason than it made radical activists feel good about themselves and on trade President Trump continues to take both.

[Company Representative] (Honda Motor Co Ltd): What pricing we should adopt, et cetera. These are things that we're still looking into right now. Well, about the competitiveness, whether there is or is not competitiveness, as we are making announcements locally, the styling, the appearance, the interior, space, design have all won a high appraisal. We have a high expectation for our models. Yes, first, the Ye series. Well, as we have been announcing, the Ye S7, the Ye series. We'll start with that model, and then the Ye GT will be launched. After Ye A7, we'll have a three row seat large SUV launched. We are preparing this model too. This will be the series.

Shinji Aoyama: What pricing we should adopt, et cetera. These are things that we're still looking into right now. Well, about the competitiveness, whether there is or is not competitiveness, as we are making announcements locally, the styling, the appearance, the interior, space, design have all won a high appraisal. We have a high expectation for our models. Yes, first, the Ye series. Well, as we have been announcing, the Ye S7, the Ye series. We'll start with that model, and then the Ye GT will be launched. After Ye A7, we'll have a three row seat large SUV launched. We are preparing this model too. This will be the series.

Speaker Change: <unk> action to protect America's critical steel and aluminum industries much like he did in his first term and the president signed proclamations to close existing loopholes and exemptions to restore a true 25% tariff on steel and elevate the tariff on aluminum to 25% as well that the administration believes these tariffs well per.

Speaker Change: Tect, our national Security and put American workers first and in the Oval office yesterday with Elon Musk President Trump took further action to make our federal government more efficient and effective he signed any O implementing the Doge workforce optimization initiative now agency heads will coordinate and consult with Doe to significantly shrink.

Speaker Change: The size of the federal workforce and limit hiring two essential positions only the unaccountable bureaucracy will finally be reined in on another important matter. This morning Senate Republicans continued to confirm president Trump's exceptionally qualified nominees most recently director of National Intelligence Toffee Gabbert, who.

[Company Representative] (Honda Motor Co Ltd): Therefore, with this, we want to establish and expand the Ye series. That is, for the current battery EV plan. Meanwhile, as you know, the NEV ratio in 2024 calendar year, it was more than 46%. Next year, what will happen? Well, there are different views on this. Still, in our case, we are thinking 55% or more, so there will be an increase of new energy vehicles. For the premier hybrid, we want to go with that. We want to use the current Accord and CR-V and the sister plug-in hybrid vehicles. Well, we have an incentive race right now, which is quite tough, so it's not selling that much.

Shinji Aoyama: Therefore, with this, we want to establish and expand the Ye series. That is, for the current battery EV plan. Meanwhile, as you know, the NEV ratio in 2024 calendar year, it was more than 46%. Next year, what will happen? Well, there are different views on this. Still, in our case, we are thinking 55% or more, so there will be an increase of new energy vehicles. For the premier hybrid, we want to go with that. We want to use the current Accord and CR-V and the sister plug-in hybrid vehicles. Well, we have an incentive race right now, which is quite tough, so it's not selling that much.

Speaker Change: Will be joining us later at the White house for her swearing in ceremony it's.

Speaker Change: It is imperative that the remainder of the President's cabinet nominees are confirmed as quickly as possible on another important matter. This week illegal alien criminals continue to be arrested and sent home as part of the ongoing mass deportation effort of the Trump administration. Just this week two planes with 190 Venezuela.

Speaker Change: Illegal aliens arrived in the Venezuelan capital from Fort Bliss, Texas here some of the criminal illegal aliens, who are arrested in the country. This past week I said Atlanta arrested a citizen of Nigeria, who had been convicted of money laundering I used to San Antonio arrest of the citizen of Mexico, who had been convicted of assault.

Speaker Change: Denver arrested a citizen of Mexico, who had been convicted of aggravated assault and ice Huston arrested a citizen of Mexico, who had been convicted of aggravated assault.

[Company Representative] (Honda Motor Co Ltd): Other than that, we think of that basically next fiscal year. No, maybe the year after, as I said, the next generation hybrid will start mass production in China. It's FY 27. Yes, FY 27. At that timing, it will start. We want to sell these models, but the NEV ratio is increasing, and therefore, well, if there's a 10% increase, then the non-NEV vehicles will decline. The market, the gasoline vehicle market will decline by more than 10%. This is something that we cannot deny. Next fiscal year, depending, well, looking at our unit sales, we have to assume what market changes will take place and put together our business plan.

Shinji Aoyama: Other than that, we think of that basically next fiscal year. No, maybe the year after, as I said, the next generation hybrid will start mass production in China. It's FY 27. Yes, FY 27. At that timing, it will start. We want to sell these models, but the NEV ratio is increasing, and therefore, well, if there's a 10% increase, then the non-NEV vehicles will decline. The market, the gasoline vehicle market will decline by more than 10%. This is something that we cannot deny. Next fiscal year, depending, well, looking at our unit sales, we have to assume what market changes will take place and put together our business plan.

Speaker Change: Now before I take questions I would like to address an extremely dishonest narrative that we've seen emerging over the past few days many outlets in this room have been fearmongering. The American people into believing there is a constitutional crisis, taking place here at the White House I've been hearing those words, a lot lately, but in fact, they're real constitutional.

Crisis is taking place within our judicial branch, where district court judges and liberal districts across the country are abusing their power to unilaterally block President Trump's basic executive authority. We believe these judges are acting as judicial activists rather than honest arbiters of the law and they have.

Speaker Change: Issued at least 12 injunctions against this administration in the past 14 days, often without citing any evidence or grounds for their lawsuits. This is part of a larger concerted effort by Democrat Actavis and nothing more than a continuation of the weaponized version of Justice against President Trump.

Quake News Flash studies Liberal judges, who are supporting their obstructionist efforts 77 million Americans voted to elect this president and each injunction is an abuse of the rule of law in an attempt to thwart the well of the people as the President clearly stated in the Oval office yesterday, we will comply with the law and the courts.

[Company Representative] (Honda Motor Co Ltd): Well, yes, I think of that with the NEV ratio increasing, we want to sell our NEVs. That is the opportunity that we want to capture. About the second CapEx, yes, the decline of JPY 70 billion is not really a delay, but instead, it has been posted slightly. Well, what we are planning for the end of the fiscal year will be carried over to the next fiscal year, the beginning of next fiscal year. That's about the change that we are seeing. The specifics, can I disclose the specifics? Well, the battery EV related investment, Canada related, well, there has been not really a delay, but we've just changed the timing.

Shinji Aoyama: Well, yes, I think of that with the NEV ratio increasing, we want to sell our NEVs. That is the opportunity that we want to capture. About the second CapEx, yes, the decline of JPY 70 billion is not really a delay, but instead, it has been posted slightly. Well, what we are planning for the end of the fiscal year will be carried over to the next fiscal year, the beginning of next fiscal year. That's about the change that we are seeing. The specifics, can I disclose the specifics? Well, the battery EV related investment, Canada related, well, there has been not really a delay, but we've just changed the timing.

Speaker Change: But we will also continue to seek every legal remedy to ultimately overturn these radical injunctions and ensure president Trump's policies can be enacted.

Speaker Change: So here in our new media D. Today, we have Chris Pawlowski, and entrepreneur, who has a strong passion for protecting freedom of speech, Chris started the video sharing platform Rumble in 2013 with a mission of protecting a free and open internet from censorship by Big Tech and governments around the globe. The platform has always been a play.

Speaker Change: For independent creators to share their authentic opinions and that he is they have always included president Trump in contrast to the way he was censored by other platforms in years past since its founding Rumble has grown exponentially recently, marking 67 million monthly active users. So a lot of users if you're watching right now and interested.

Operator: Okay. Thank you. Thank you very much, Mr. Mizutori. Next, question from Nikkei Asia. Mr. Takei, please.

Speaker Change: And sitting in the seat you can apply whitehouse dot Gov Slash new media media with that I will take your questions and Chris why don't you kick us off on this very busy news day.

Speaker Change: Thank you very much.

President Trump: President Trump.

Speaker Change: If you're sitting here in the new media speaks for the White house to be able to demonstrate why freedom of expression is so important.

Speaker Change: Rommel was the victim of censorship.

Speaker Change: Jeff at the hands of multiple foreign government. It's clear there are still many countries where post free speech, even target American companies can you describe what the administration will do to protect U S interests and values worldwide.

Eiji Fujimura: Hello. Takei from Nikkei Asia. Can you hear me? Yes.

[Analyst 2] (Nikkei Asia): Hello. Takei from Nikkei Asia. Can you hear me?

Laura Barrón-López: Yes.

Operator: Thank you.

[Analyst 2] (Nikkei Asia): Thank you. Two questions. First one is the US automobile market. In the United States, Trump administration has started, and upcoming BEV sales, what do you think, how it would be? Well, hybrid demand is good today, but how do you assess the current EV and hybrid sales situation? How would you address current situation? The other question is Southeast Asian region. Hybrid and plug-in hybrid are well accepted, very popular there, I heard. Do you have a plan to be more engaged in the businesses for them? Please share with us your assessment and how you are going to do about your businesses in there.

Speaker Change: Sure well thanks for the very important question and I think that our free speech and ending censorship and both here at home and also abroad is an important part of President Trump's agenda. I think first President Trump has led by example on this front as the leader of the free World of President of the United States with him.

Eiji Fujimura: Two questions. First one is the US automobile market. In the United States, Trump administration has started, and upcoming BEV sales, what do you think, how it would be? Well, hybrid demand is good today, but how do you assess the current EV and hybrid sales situation? How would you address current situation? The other question is Southeast Asian region. Hybrid and plug-in hybrid are well accepted, very popular there, I heard. Do you have a plan to be more engaged in the businesses for them? Please share with us your assessment and how you are going to do about your businesses in there. Thank you very much, Take-san, for your question.

Speaker Change: Is a show of access and transparency on a daily basis and the President takes questions from all of you are.

Speaker Change: Almost every single day, and really reveals what he's thinking and feeling and I think that serves as a great example to the rest of the world and as for tangible actions that the President has signed he did signed an executive order I believe on day, one certainly within the first week of this administration and to restore free speech and stopped government sponsored censorship here at her.

Speaker Change: Home and the E O made it very clear and that federal employees are not allowed to engage in any activity that would infringe upon the American People's right of free expression. So I think the president has led a quite strongly on that and I would just add this is part of the reason we have a new media seat to invite new voices into this room again, we're going to need to expand it shrunk.

So many people are interested and we're very excited about that it's a privilege to cover this white house, but we want them all voices to be hurt so thanks for being us with here, Chris and I Hope you enjoyed the briefing sure Jordan. Thanks, Caroline SEDAR. This morning show that consumer prices were up across a variety of goods.

Shinji Aoyama: Thank you very much, Take-san, for your question. Trump's administration started eventually, and then as of now. Well, the things keep changing minute by minute. Our stance is to stay flexible and be able to be agile in reacting to the situation. As of now, Canada and Mexico and its tariff situation, the current interest point is around that. Aluminum and the steel tariff are about 25% on those would provide us some impact, of course. However, those materials like aluminum or steel, it is not too difficult to find our solution because we have quite a bit of procurement within the country in the US.

Eiji Fujimura: Trump's administration started eventually, and then as of now. Well, the things keep changing minute by minute. Our stance is to stay flexible and be able to be agile in reacting to the situation. As of now, Canada and Mexico and its tariff situation, the current interest point is around that. Aluminum and the steel tariff are about 25% on those would provide us some impact, of course. However, those materials like aluminum or steel, it is not too difficult to find our solution because we have quite a bit of procurement within the country in the US.

Speaker Change: For the present Trump called for lower interest rates. The fed said, it's holding steady to try and tamped down further inflation, so howard lowering rates.

Speaker Change: Keep your question Chuck Murphy, the sharp well first of all on the inflation point, we did receive those numbers and they were worse than expected, which tells us that the bite and administration, Indeed left us with a mask to deal with and it's far worse than I think anybody anticipated because unfortunately, the previous administration was not transparent in where the economy truly was.

Speaker Change: We know people at those very podiums toward the American people that inflation was transitory.

Speaker Change: And that it would go away that was not the case and now the last report of the bite administration as revealed today shows that inflation is still about 4.5% higher over the past three months. This is an indictment on the bite administrations mismanagement of the inflation crisis and their lack of transparency and addressing it as for tackling inflation and interest.

Eiji Fujimura: A part of the air supplies could be from Canada, from Japan as well, for aluminum and steel. However, I don't think it is very difficult to address that situation of the tariff for those two materials. At 25% of this of other CBU from Mexico and Canada, if that tariff policy continues for half a year, two, three years, for instance, it will be a difficult situation. Our action might be different depending on how we would assess the upcoming situations like that. As of now, like I said before, $7,500 things, how would that be eventually? Also, the state of California is having this ZEV regulation.

Shinji Aoyama: A part of the air supplies could be from Canada, from Japan as well, for aluminum and steel. However, I don't think it is very difficult to address that situation of the tariff for those two materials. At 25% of this of other CBU from Mexico and Canada, if that tariff policy continues for half a year, two, three years, for instance, it will be a difficult situation. Our action might be different depending on how we would assess the upcoming situations like that. As of now, like I said before, $7,500 things, how would that be eventually? Also, the state of California is having this ZEV regulation.

Reis. The President has made his is our position on this very clear he wants interest rates to be lower he wants inflation to be lower and he believes that the whole of government economic approach that this administration is taking with.

Speaker Change: Will result in lower inflation I have said that from this podium many times the president had record low interest rates and inflation rates and his first term. He believes that the economy can handle it and withstand it and we're doing a lot to tackle the inflation effort on this front, it's a whole of government economic approach and I've talked about what we're doing to tackle inflation.

Speaker Change: Quite a few times from this podium.

Speaker Change: That's going to come before a prime Minister Modi from Smart I do believe it will come before the Prime Minister's visit Tomorrow, and I will let the president to discuss the detailed on the reciprocal tariff front, but this is something he believes strongly in and it's very simple logic as to why the president wants to impose reciprocal tariffs, it's the Golden rule, which we all learned when we were growing up in school a tree.

Speaker Change: Others. The way you want to be treated and far too. Many nations around this world had been ripping off the United States of America for far too long and that's why the President believes this will be a great policy that will benefit American workers and improve our national security J J does and the fraud claim Elon musk and the overall yesterday and gave US some information on that we're just want.

Eiji Fujimura: How would that be changing under Trump administration, the ZEV and the other regulations in California? In fact, from the model year 2026, we are to incorporate the ZEV requirements. Under this regulation, we need to sell more battery EVs. However, given the current situation, it is quite difficult to achieve that requirement for the regulation. I wouldn't say this is perfectly linked with the Trump's administration intention. However, the ZEV related regulation will have to change accordingly perhaps. As for the hybrid, affordably priced hybrid, can be available with a more variety for the choice of the consumers. That is what's happening today as a fact.

Shinji Aoyama: How would that be changing under Trump administration, the ZEV and the other regulations in California? In fact, from the model year 2026, we are to incorporate the ZEV requirements. Under this regulation, we need to sell more battery EVs. However, given the current situation, it is quite difficult to achieve that requirement for the regulation. I wouldn't say this is perfectly linked with the Trump's administration intention. However, the ZEV related regulation will have to change accordingly perhaps. As for the hybrid, affordably priced hybrid, can be available with a more variety for the choice of the consumers. That is what's happening today as a fact.

Speaker Change: During if theres improve evidenced as the white house willing to share evidence in those broad claims or can Iran must come to the briefing room and share material evidence of what he's talking about sure I would love for you on what's to come to the briefing room. That's why we had them go to the oval office yesterday, where I think he provided great answers. He was speaking in layman's terms speaking com.

Speaker Change: And thanks to all of you in the media, but also to Americans at home, but I would say, especially to all of you in the media because I think it's a real fallacy that theres. This alleged lack of transparency when it comes to Doge.

Speaker Change: Didn't Trump and Elon Musk has been incredibly transparent on what Dow just doing there is an ex account with the Doge handle they are tweeting out what they are doing on a daily basis. They have a website, where they are posting the receipts of the contracts that they are reviewing and the payments that they have stopped from going out the door for the secretaries of our departments have stopped from going.

Speaker Change: Out the door and I would also say that before it was elon musk, making our government efficient and accountable. It was some unnamed bureaucrat that none of you knew I E. One mask is.

Eiji Fujimura: In case of Honda, this year about 400,000 hybrid cars are to be sold in this fiscal year ending March FY 2025. Next year it will be a little more, maybe a little less than 500,000 units of hybrid we expect. Therefore, this year we have 25% of hybrid cars out of all types. That is our prospect for this year. Next year 500,000 units in North America for hybrid. Therefore, in a global context, this year the volume will be a bit less in China, a bit less hybrid over there too.

Shinji Aoyama: In case of Honda, this year about 400,000 hybrid cars are to be sold in this fiscal year ending March FY 2025. Next year it will be a little more, maybe a little less than 500,000 units of hybrid we expect. Therefore, this year we have 25% of hybrid cars out of all types. That is our prospect for this year. Next year 500,000 units in North America for hybrid. Therefore, in a global context, this year the volume will be a bit less in China, a bit less hybrid over there too.

Speaker Change: The richest man in the World. He is also now one of the most highly scrutinized man in the World alongside President Trump because of what he is doing any access that he is allowing so theres great transparency as for the actual receipts, we are happy to provide them and I actually brought them today, because all of you know I love to bring their receipts, we have contracts upon contracts that we.

Speaker Change: Can send and provide this information to you let me be very clear we are not trying to hide anything we have been incredibly transparent and we will continue to be these are screenshots of contracts that those found across our government. This is a D. I contract $36000 for U S citizenship and immigration services that is against the President's policies and as America.

Speaker Change: First agenda. This is a $3 4 million dollar contract a council for inclusive innovation.

The U S patent and trademark office Department of Congress Commerce. Another dei contracts that don't identified I can continue to go through these Oh I Love. This 157000 Bucks for climate change in Sri Lanka. What is this doing to continue the interests of the American people absolutely nothing these are the line item.

Eiji Fujimura: This year, I would say 900,000 hybrid cars for this current year, and next year it will be more than 1 billion. That's our assessment as of today. What is the benefit for Honda? I think that was your first question, I suppose. I didn't understand the intent of your question really. About Southeast Asian countries, the demands for hybrid in Thailand and in Indonesia market, the demands for that is mounting. In Thailand, the hybrid ratio is growing. Let's say 30% or so, hybrid, I suppose. Indonesia, the competitor is going ahead and we are a little behind.

Shinji Aoyama: This year, I would say 900,000 hybrid cars for this current year, and next year it will be more than 1 billion. That's our assessment as of today. What is the benefit for Honda? I think that was your first question, I suppose. I didn't understand the intent of your question really. About Southeast Asian countries, the demands for hybrid in Thailand and in Indonesia market, the demands for that is mounting. In Thailand, the hybrid ratio is growing. Let's say 30% or so, hybrid, I suppose. Indonesia, the competitor is going ahead and we are a little behind.

Speaker Change: Across the federal government that Dow just identifying daily Theyre moving very fast there's a lot of paper that we can show you, but we're happy to do it. This administration has been more than transparent and about what they were just doing and here's one of their tweets that they posted about the mine I believe this is in Pennsylvania, where the federal employee retirement system.

Speaker Change: Is being processed did anybody notice was even happening in our country before Elon musk talked about it in the oval office yesterday, a lot of Americans Didnt. So we are providing transparency and accessibility on a daily basis. When it comes to Doge and I also have a dose daily report if anybody would like it on all of the things that they are identifying and finding.

Speaker Change: We're happy to provide this information to you were talking about it every single day or all those things you just mentioned fraud or are they waste or are they just contrary to the President's policy I would argue that all of these things are fraudulent they are wasteful and they are an abuse of the American taxpayers dollar.

Eiji Fujimura: However, the ratio out of the entire market will be like, of course, with the battery EVs a bit growing 6% in Thailand, Indonesia. Hybrid is about 8%.

Speaker Change: This is not what the government should be spending money on it it's contrary to the president's priorities and agenda and again, we can continue to provide you the receipts for all of the fraud waste and abuse and if anybody in here wants to argue that the federal government is not fraudulent and some capacity be my guess because I think the American people watching at home went back to <unk>.

[Company Representative] (Honda Motor Co Ltd): Out of the entire market, they are still a small percentage, and Honda is a little behind as of now. Next year we will be more aggressive launching and selling the hybrid cars in Indonesia. Thank you. Thank you. I apologize for the unclear question. When I talked about benefits, I was saying that we are seeing an increase in demand for HEV hybrid and therefore I thought that there might be an opportunity for Honda to sell more hybrids. In that context, you said that there'll be an increase in the United States of some 100,000 units. I think that you've answered my question. Thank you. One clarification, if I may, about the North America market.

Shinji Aoyama: Out of the entire market, they are still a small percentage, and Honda is a little behind as of now. Next year we will be more aggressive launching and selling the hybrid cars in Indonesia. Thank you.

Speaker Change: Sure.

Speaker Change: Mary.

Speaker Change:

[Analyst 2] (Nikkei Asia): Thank you. I apologize for the unclear question. When I talked about benefits, I was saying that we are seeing an increase in demand for HEV hybrid and therefore I thought that there might be an opportunity for Honda to sell more hybrids. In that context, you said that there'll be an increase in the United States of some 100,000 units. I think that you've answered my question. Thank you. One clarification, if I may, about the North America market.

Speaker Change: Sure on the judges Cisco I have please of course has the authority to issue these nationwide injunction we.

Speaker Change: We believe that the injunction that had been issued by these judges.

Speaker Change: I have no basis in the law and have no grounds and we will again as the President said very clearly yesterday comply with these orders, but it is the administration's position that we will also ultimately be vindicated in the President's executive actions that he took were completely within the law. They were constitutional and we look forward to the day, where he can continue to implement his.

Speaker Change: Agenda, and I would just add it's our view that this is the continuation of the Weaponisation of Justice that we have seen against President Trump. He fought it for two years on the campaign trail it won't stop him now Brian.

[Company Representative] (Honda Motor Co Ltd): You said the ZEV regulation will become reality, but what is the realistic number? Also the hybrid ratio for this fiscal year is 25%, I think you, but next fiscal year, if it were to increase, what will be the ratio for next fiscal year? Can you add that explanation, please? Yes. About the hybrid ratio for this year is about 25%. Next fiscal year, there will be an increase of 100,000 in North America. I think the ratio will be 35%, a little more maybe. About 35%, I guess. About the ZEV regulation. Let's talk about the industry on the whole. I think it will be difficult to achieve that regulation standard.

[Analyst 2] (Nikkei Asia): You said the ZEV regulation will become reality, but what is the realistic number? Also the hybrid ratio for this fiscal year is 25%, I think you, but next fiscal year, if it were to increase, what will be the ratio for next fiscal year? Can you add that explanation, please?

Speaker Change: I want to go back to Dow just for a second earlier the subcommittee.

Speaker Change: By our chairman Mark Greenberg and her staff discovered 2.7 trillion dollars of improper payments.

Speaker Change: Care Medicaid oversees the people who should not have got some of this room might have missed that press conference can you.

Speaker Change: Rob right on what the president.

Speaker Change: At this point well again, that's another example, there's a very long list of the fraud waste and abuse that Dodgers identifying on a daily basis Elon Musk also talked about yesterday about social security payments that are going out the door for people who are no longer with us. Unfortunately, I would say that is certainly a fraud. There's also a lot of contracts they've identified.

Shinji Aoyama: Yes. About the hybrid ratio for this year is about 25%. Next fiscal year, there will be an increase of 100,000 in North America. I think the ratio will be 35%, a little more maybe. About 35%, I guess. About the ZEV regulation. Let's talk about the industry on the whole. I think it will be difficult to achieve that regulation standard.

Speaker Change: And just as a hypothetical example, or a million bucks, but only 500000 went out the door. So where's the rest of that cash and so that's the thing those are the things that don't just working on every single day and I would just remind everybody in this room. This is what president Trump campaigned on doing he is delivering on our promise that 77 million people elected him to do James.

[Company Representative] (Honda Motor Co Ltd): Currently looking at the situation, the regulation itself might become something more realistic. That was what I was trying to say here. I really don't have any specifics to talk about here. We're just thinking that the regulation might be loosened to a more realistic number. Thank you. Mr. Takei, thank you very much. It's time for us to end. With this, we would like to end our financial results briefing session. As for the materials, they will be posted on our website. Once again, thank you for your participation.

Shinji Aoyama: Currently looking at the situation, the regulation itself might become something more realistic. That was what I was trying to say here. I really don't have any specifics to talk about here. We're just thinking that the regulation might be loosened to a more realistic number. Thank you.

James Schroeder: Thank you very much better aligned to foreign policy questions. If I may 1st.

James Schroeder: Statement that was released after this morning's phone calls identified Mr Wood cost.

James Schroeder: Special envoy who will be.

James Schroeder: Part of the delegation that it takes to resolve the Russia Ukraine.

Operator: Mr. Takei, thank you very much. It's time for us to end. With this, we would like to end our financial results briefing session. As for the materials, they will be posted on our website. Once again, thank you for your participation.

James Schroeder: Walter.

Speaker Change: General fell off so can you clear that up sure I'd be happy to and as you mentioned the president and his truth. Following the phone call with a bladder mirror Poo and said that he has asked secretary of state Rubio and the director of the CIA John Ratcliff, Our National Security advisor here at the White House, Michael Watts, and Steve wet cough to lead the negotiation.

Speaker Change: As for general keep Kellogg he remains a critical part of this team and this effort. He has played a tremendous role in getting the negotiations to this point and he is very much still part of the Trump administration, the other subject as Iran.

Speaker Change:

Speaker Change: I took note of President Trump's comments is Super Bowl interview.

Speaker Change: With our colleagues there.

Speaker Change: If he wants to do a deal with Iran.

Speaker Change: However that interview appeared.

Speaker Change: After the Supreme leader of Iran. The Ayatollah Ali how many have already ruled out any additional negotiations with the United States. So kind of a two part question.

Speaker Change: What gives the president any confidence that Iran will come to the table.

Speaker Change: And be more more.

Speaker Change: Fundamentally.

Speaker Change: Why is the president of interested in doing a deal with Iran. Instead of doing everything he can perhaps short of U S military intervention to try and chase in the end of what many of his own supporters regard as an evil regime.

Speaker Change: The President has made it very clear that he will never allow Iran to have nuclear capabilities that is a red line that he has strong and he will not allow that to happen, but you asked why president Trump wants to make a deal I would remind you. He is the master of the art of the deal. He is America's Dealmaker and chief he leads from a position of securing P.

Speaker Change: Through strength and I think time and time again already in just four weeks, we have seen the president being able to negotiate successful deals with our partners our adversaries all around this world Yeah.

Speaker Change: The release of Mark phone will just last night is something that I think speaks to the President's dealmaking ability. This is something that the binding administration allegedly tried to do for three and a half years I think you all should go back and ask some of those bided administration officials, what they even tried to do and why weren't they successful because for three and a half years Mark Vogel sat in.

Speaker Change: A Russian present prison and it took president Trump three weeks to get him back on American soil, there's nobody better at making deals than Donald Trump Airlines fill wagman.

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Speaker Change: After the war.

Speaker Change: He wants NATO membership for nuclear weapons Defense Secretary safe and NATO membership was unrealistic.

Speaker Change: What the President's view on the other option on our nuclear you're correct I have not talked to president Trump about Ukraine's NATO membership or are their nuclear capabilities I would leave it to him to discuss but I will tell you again that secretary Rubio and also the vice President J D. Vance will be meeting directly with President's Alinsky in Munich on Friday.

[Analyst 1]: I see stepping to the podium right now, Pam Bondi. We're gonna switch right back to that event in our nation's capital. Let's listen in.

Operator: I see stepping to the podium right now, Pam Bondi. We're gonna switch right back to that event in our nation's capital. Let's listen in.

Pam Bondi: I'm sorry we were a little bit late. I was in the West Wing swearing in Tulsi Gabbard, and so I just came straight back here. Thanks for being patient with us with the delay. We're here today because we have filed charges against the State of New York. We have filed charges against Kathy Hochul. We have filed charges against Letitia James and Mark Schroeder, who is with DMV. This is a new DOJ, and we are taking steps to protect Americans, American citizens, and angel moms, like the mom standing right behind me, who you're gonna hear from in a moment. New York has chosen to prioritize illegal aliens over American citizens. It stops today. As you know, we sued Illinois. New York didn't listen, so now you're next.

Speaker Change: And I'm sure they will provide a readout of that conversation in that discussion question given that this administration has called on Europe to take.

Speaker Change: More responsibility for their own defense.

Speaker Change: I'm wondering will you or any other European nation other than Ukraine be involved in these feedstocks.

Speaker Change: Have any European agents, who are involved currently to read out for you.

Speaker Change: Certainly you know the president has employed a very strong team are deploying a very strong team to continue these negotiations and the fact that he was on the phone with both president proven and President Wolinsky today shows that he is very much involved in this effort as well.

Speaker Change: I gotcha.

Speaker Change: Should we expect the president to negotiate in person.

Speaker Change: With us.

Speaker Change: I don't have anything to read out on that for you today Maggie good to see you.

Pam Bondi: Millions of illegal aliens with violent records have flooded into our communities, bringing violence and deadly drugs with them. With me today, I'm so proud to be joined by Tammy Nobles. Tammy is an angel mom. Her beautiful daughter, Kayla Hamilton, was murdered by an MS-13 member in 2022. Kayla had just turned 20 years old, and she was raped and murdered by someone who should not have been in our country. Yet he was released, flown to Maryland, where he committed this violent murder. I just want you to hear from Tammy. Tammy represents not only herself and her family, but all of the great angel moms around this country who have suffered because of what the Biden administration did, and it is over.

You talked about transparency with does any one month.

Speaker Change: Chris available yesterday, there is a conflict of interest law in place that says that people, who had personal interests you can't interact with government entities could touch on that has president Trump signed a waiver for a one month is such a thing exists. If it does well you guys releases in the interest of transparency I have not seen the law.

Speaker Change: Now that you are referring to what I can tell you is that even mask because I've confirmed before is a special government employee. He is filing the proper financial disclosure and he is complying with all applicable federal laws. As you also heard Elon address this directly yesterday and the alleged conflict of interests and he said everything he's doing is very public and if you all.

Speaker Change #100: Perceive a conflict of interest you're welcome to bring that up and as the President said if he feels like Elon is engaging in something that's a conflict of interest. He will tell you on not to do that.

Speaker Change #100: And Ilan also said yesterday that before he moved forward with anything of heat consult with the president of the United States. So we're very confident with the the ethics and the guardrails that have been put in place here.

Tammy Nobles: Thank you for having me here today and being able to share Kayla's story. Her murderer was able to come across the border knowing that he was flagged as an MS-13 gang member, and he had a criminal record in 2020 in El Salvador for illicit gang activity. He came over as an unaccompanied alien child, saying that he was afraid of gang activity in his country. Department of Health and Human Services called him a nice boy, and he showed age-appropriate behavior. That fell so wrong when he murdered my daughter. He ended up in Maryland, where he was able to rent a room in the same mobile home as her. We thought it was a legit company that were renting out these rooms, but it turned out that it was another illegal immigrant who owned these mobile homes, and he knew Walter from El Salvador.

[Analyst 1]: Thank you for having me here today and being able to share Kayla's story. Her murderer was able to come across the border knowing that he was flagged as an MS-13 gang member, and he had a criminal record in 2020 in El Salvador for illicit gang activity. He came over as an unaccompanied alien child, saying that he was afraid of gang activity in his country. Department of Health and Human Services called him a nice boy, and he showed age-appropriate behavior. That fell so wrong when he murdered my daughter. He ended up in Maryland, where he was able to rent a room in the same mobile home as her. We thought it was a legit company that were renting out these rooms, but it turned out that it was another illegal immigrant who owned these mobile homes, and he knew Walter from El Salvador.

Speaker Change #100: They feel like I have a few things for you, but on the commitment by President Trump. He said that he has agreed to visit each other's respective nation are there any precondition that president Trump has the president put must do before he goes and meet with them withdrawing some forces withdrawing all forces anything like that not that I'm aware of that doesn't mean, they don't exist, but I was.

Speaker Change #100: Just talking with the president in our National Security team I wasn't are made aware of any conditions, but if they exist I'm happy to provide us and honestly the president himself UV felt himself as the master negotiator.

Speaker Change #100: Now deploying these negotiations that they start immediately we did hear from the defense Secretary Pete access. So today, saying that NATO membership is not realistic for Ukraine and neither is returning to pre 2014 borders are they giving away bargaining chips for these negotiations started again I haven't talked to the president about Ukraine's NATO membership and.

Speaker Change #100: He appointed several individuals to negotiate on his behalf. He's indirectly involved in these negotiations as well and I'm sure if you're asking that question in the near future when you're able to give you an answer I just don't want to get ahead of it in on it.

Tammy Nobles: He knew him and allowed him to rent a room with my child. Kayla just turned 20 years old three days before she was murdered. Her murderer was only living there for 5 days before he viciously strangled her, raped her, and left her on the floor like trash and robbed her of $6. I have been sharing her story for over two and a half years to bring change because this should not have ever happened to Kayla, and it shouldn't be happening to other families being hurt by the border. Homeland Security did not do their jobs. They did not check his background. You know, they did say that he was processed, so if they processed him, they knew that he was a gang member and still allowed him here.

[Analyst 1]: He knew him and allowed him to rent a room with my child. Kayla just turned 20 years old three days before she was murdered. Her murderer was only living there for 5 days before he viciously strangled her, raped her, and left her on the floor like trash and robbed her of $6. I have been sharing her story for over two and a half years to bring change because this should not have ever happened to Kayla, and it shouldn't be happening to other families being hurt by the border. Homeland Security did not do their jobs. They did not check his background. You know, they did say that he was processed, so if they processed him, they knew that he was a gang member and still allowed him here.

Speaker Change #100: Which might health officials made the decision to bar the AP reporter from the Oval office and the diplomatic reception from last night well first of all let me just set the record straight it is a privilege to cover this white house, it's a privilege to be the Whitehouse Press Secretary and nobody has the right to go into the Oval office and ask the president of the United States question.

Speaker Change #100: That's an invitation that is given and there are hundreds of outlets on this campus. Many of you in this room, who don't have the privilege of being part of that pool every single day and getting to ask the president questions. We reserve the right to decide who gets to go into the oval office and you all have credentials to V here, including the associated press, who is in this briefing room.

Speaker Change #100: Today, but if they ever Californian nature is the argument because.

Speaker Change #100: And that the if he was barred which they said was because theyre not using the phrase Gulf of America, they're using Gulf of Mexico in line with their standards and so the question. Here is is this setting a precedent that the white house will retaliate against reporters, who don't use the language that you guys believe for order should use and how does that align with the first amendment commitment that you were just talking about I was very upfront in my <unk>.

Tammy Nobles: Health and Human Services did not verify the sponsor and allowed him to go with a sponsor that they don't even know if it was his cousin or his aunt, and he was able to leave the sponsor's house to go wherever he wanted. I am going to continue sharing Kayla's story to help save others and to bring awareness of what was happening under the Biden-Harris administration. I'm so thankful for Pam having me here today, and I'm so thankful for the opportunities I got from Trump and any other platform, you know, people who allowed me to share her story because this is going to end. No other parent should suffer by having their child murdered by somebody that shouldn't be here.

[Analyst 1]: Health and Human Services did not verify the sponsor and allowed him to go with a sponsor that they don't even know if it was his cousin or his aunt, and he was able to leave the sponsor's house to go wherever he wanted. I am going to continue sharing Kayla's story to help save others and to bring awareness of what was happening under the Biden-Harris administration. I'm so thankful for Pam having me here today, and I'm so thankful for the opportunities I got from Trump and any other platform, you know, people who allowed me to share her story because this is going to end. No other parent should suffer by having their child murdered by somebody that shouldn't be here.

Speaker Change #101: Anything on day, one and that if we feel that there are lives being pushed by Alice in this room, we are going to hold those lives accountable and it is a fact that the body of water off the coast of Louisiana is called the Gulf of America, and I'm not sure why news outlets don't want to call. It that but that is what it is the secretary of interior <unk>.

Speaker Change #101: Has made that the official designation and geographical identification name server and Apple has recognized that Google has recognized that pretty much every out of our outlet in this room has recognized that body of water as the Gulf of America and its very important to this administration that we get that right not just for people here at home, but also for the rest of the world sure. Thank you Caroline.

Speaker Change #102: The prisoner exchange with Russia coming at the same time as the President is now announcing negotiations to end the warranty cranes. The timing of that is hard to ignore was Ukraine discussed as part of this person or slots.

Tammy Nobles: I'm gonna continue, you know, sharing it and for Kayla, you know, and also for others. Thank you.

[Analyst 1]: I'm gonna continue, you know, sharing it and for Kayla, you know, and also for others. Thank you.

Pam Bondi: Strong. It's my understanding that he also admitted to other murders, correct? Multiple murders.

Speaker Change #103: I was not involved in those discussions so I can't comment on whether that came up and are not what I can say is that this was a very good deal.

Tammy Nobles: Yes. He wrote a letter, and it was intercepted in jail that he committed 4 murders and 2 rapes.

[Analyst 1]: Yes. He wrote a letter, and it was intercepted in jail that he committed 4 murders and 2 rapes.

Speaker Change #103: For the United States of America, and for the rest of the World. As you know we have confirmed that the Russia and who will be returning home very soon Alexander Vinik was a non violent crimp crypto criminal and as part of this exchange he has forfeited more than $100 million and that he obtained in that illegal crime.

Pam Bondi: That's who we were letting walk into our country, and that's why President Trump has directed this to stop. If you don't comply with federal law, we will hold you accountable. We did it to Illinois. Strike one. Strike two is New York, and if you are a state not complying with federal law, you're next. Get ready. The great men and women of law enforcement are standing behind me today. We have FBI, DEA, ATF agents. They put their lives on the line every single day to protect us. What New York has, they have green light laws, meaning they're giving a green light to any illegal alien in New York, where law enforcement officers cannot check their identity if they pull them over.

Speaker Change #103: And in exchange of course, we got Mark Vogel, who is a middle school teacher, who kissed the American soil. The kiss the ground last night when he returned to the United States of America. It was a great deal and a great day for our country and I think everybody regardless of political affiliation agrees with that was Russia made aware ahead of time of the Perm.

Speaker Change #103: Emitters that the administration and Secretary Hegseth was going to be announcing today, the NATO parameters, yet I'm not sure you'd have to ask Secretary has sat in the defense Department on that one since he announced that Jackie. Thank you can I just to be clear. So when we're listening for a share position in U S policy.

Pam Bondi: Law enforcement officers do not have access to their background, and if these great men and women pull over someone and don't have access to their background, they have no idea who they're dealing with, and it puts their lives on the line every single day. Violent criminals, gang members, drug traffickers, human smugglers will no longer terrorize the American people, and that is why we are here today. You will be held accountable if you do not follow federal law. It's over, it ends, and we're coming after you. Questions.

Speaker Change #104: Should we only listen to the president and maybe not secretary of defense before he outlined today would represent a shift in U S policy I'm, not saying that I'm, just saying I speak for the president of the United States behind this podium and I will let him discuss that we just tell me more about the next top different leases I understand that Americans coming out today sure I'm glad you asked it speaks to President Trump steelmaking.

Speaker Change #105: <unk> and we can confirm the safe release of one American and two individuals from Belarus, one of whom worked for radio Liberty out of respect for the privacy of these individuals their request we have no further details to announce on their identities, but we can confirm that and one American was released today and its a rumor.

Operator: We have time for a few questions. David Spunt, Fox News.

David Spunt: Madam Attorney General, thank you and welcome to the Justice Department.

Speaker Change #105: A couple of victory on the heels of Mark Vogel returning to America last night anything on who the U S might be releasing an exchange I don't have details on that at this Gnome anyway I don't have details on that at this moment I do know that these three individuals have been released and are on their way home to their respective countries.

Pam Bondi: Thank you.

David Spunt: I have a quick on topic and a quick off topic question.

Pam Bondi: Sure.

David Spunt: On topic, in your executive order or in your orders on the first day you were here, you talked about working with the Justice Department or these sanctuary cities, as you say-

Pam Bondi: Yes

David Spunt: will be punished. Today, you're putting people on notice. Right now, we're just lawsuits. Is this gonna go further? What kind of punishment are we talking about? Is there any grounds to charge individuals, charge politicians? How far is this gonna go?

Speaker Change #105: Thank you so much and can you explain how president Trump envisions the war in Russia, and Ukraine coming to an end because he expect Ukraine to hand over all the territory. In question again. These negotiations are ongoing I will allow the president to divulge any red lines that he may set, but I think as.

Pam Bondi: Well, we're gonna see what they do next, David. We have sued them all. We've personally sued the governor, the Attorney General Letitia James, and Mark Schroeder with DMV because he has the green light laws. What they have to do, they have to start complying with federal law. If they don't, we're gonna appeal it and we will win. They have to comply with federal law. Did you have a second question?

Speaker Change #105: Deals in the past have come to fruition. The president has proven one of the things that makes them a very effective negotiator is not revealing what he is anticipating from both sides, but he is at the forefront of these negotiations. In addition to the very qualified individuals who he is tasked with speaking to both president Putin and President's Alinsky speaking of deal.

David Spunt: I did have a second off topic question.

Pam Bondi: Mm-hmm.

David Spunt: In this regard, to the judiciary. Today, Elon Musk, who has enormous influence in the Trump administration, posted on X, quote, "There needs to be an immediate wave of judicial impeachments, not just one." As the Attorney General of the United States, how do you respond to that?

Speaker Change #105: <unk>.

Speaker Change #105: A meeting with the president of the United States offers.

Pam Bondi: He-

David Spunt: Shouldn't the process work out in the courts before we talk about judicial impeachments? I mean, these are just TROs now at this time. Shouldn't these just play out?

Pam Bondi: Yeah. I haven't seen Elon Musk tweet. He is a friend of mine. He is a great man. I think he's very frustrated with what's happening in our federal government. You know, at USAID alone, they're giving out $ billions that should not be distributed. We're going to back him up. You know, we work our whole lives in this country, and we all pay taxes in this country. For people to find out that $2 million is going to Guatemala for sex changes is outrageous, and we're gonna back up Elon Musk every way we can. That includes lawsuits against these people who are doing that, and we will be successful.

David Spunt: Do you have concerns about judicial impeachments?

Pam Bondi: That's not gonna happen now. We're gonna look at everything. We're gonna follow the law right now. We're gonna follow the process. These are federal judges with lifetime appointments, but they will be struck down ultimately by the Supreme Court of the United States if the appellate courts don't follow the law as well.

Operator: Laura Barrón-López with the AP.

Laura Barrón-López: Hi.

Pam Bondi: Hi.

Laura Barrón-López: Thank you so much. I also have an on topic and an off topic.

Pam Bondi: Sure.

Laura Barrón-López: First of all, can you just briefly walk us through what the legal claims are you're making in this lawsuit?

Pam Bondi: Yeah. Absolutely. The green light laws are that. This is what the Green Light Law says. It's a green light to illegal immigration, which says they can comply. That law is unconstitutional. They can't do that. What they've done is they have a tip-off provision that requires New York's DMV commissioner to promptly inform any illegal alien when a federal immigration agency has requested their information. Think about the men and women in law enforcement behind me. That's tipping off an illegal alien, and it's unconstitutional, and that's why we filed this lawsuit, and that's why we charged Mark Schroeder too, because he runs DMV. Oh, I'm sorry. You had a second question.

Laura Barrón-López: Yeah. My off topic question. I wanted to ask about Mayor Eric Adams' case.

Pam Bondi: Yes.

Laura Barrón-López: As of at least a few moments ago, FDNY still has not dropped that case. Have you or other DOJ leadership spoken to the acting U.S. attorney and FDNY since the memo was sent earlier this week, and what will you do if she refuses to drop the case?

Pam Bondi: I have not spoken to her. I know our acting DAG, Emil Bove, has spoken to her, and Chad Mizelle may have spoken to her, but that case should be dropped. It was done at the directive of Emil, so that case should be dropped. I did not know that it had not been dropped yet, but I will certainly look into that.

Operator: Reagan with The Daily Caller.

Reagan Reese: Hi. Thank you.

Pam Bondi: Hi. How are you?

Reagan Reese: Tom Homan suggested this week that someone from within the FBI may be leaking information about-

Pam Bondi: Mm-hmm

Reagan Reese: The ICE raids and that such could be putting officers' lives at risk. Has the DOJ gotten any closer to determining if these leaks are coming from within the FBI? What will the consequences be if they can identify the leakers from the FBI?

Pam Bondi: Excuse me. Well, first, I can't talk about anything that is ongoing, and that is ongoing. It's really for the similar reasons of what I said earlier. The great men and women in law enforcement standing behind me today, they deserve, they must be protected. Anytime anyone leaks or tips off anything regarding a pending investigation, that jeopardizes lives. You're telling a bad guy what's about to happen. It could jeopardize the lives of all the men and women in law enforcement. We will not stand for it. We will find you. We're going to investigate it, no matter what agency it came from. We don't know for certain.

Pam Bondi: We have an open investigation, so I can't talk about it in detail, but we will do everything in our power to hold you accountable, and it is a crime, and you will be prosecuted when we find you.

Operator: Okay, guys, time for one more. Milana Austin, Newsmax.

Milana Austin: Hi.

Alana Austin: Hi.

Pam Bondi: Hi, Lana.

Milana Austin: Madam Attorney General, thank you so much for your time. I was also interested in hearing specifically what the interactions have been like with Mayor Adams, and I know he has a little bit of a different tone than some of the other Democrats out of the Empire State. Then also Denver Mayor Mike Johnston, 'cause before President Trump went back into office, he had issued some words about a potential standoff and then walked that back. I was curious to see

Alana Austin: Madam Attorney General, thank you so much for your time. I was also interested in hearing specifically what the interactions have been like with Mayor Adams, and I know he has a little bit of a different tone than some of the other Democrats out of the Empire State. Then also Denver Mayor Mike Johnston, 'cause before President Trump went back into office, he had issued some words about a potential standoff and then walked that back. I was curious to see

Operator: What things have been like for New York City and Denver officials?

Alana Austin: What things have been like for New York City and Denver officials?

Pam Bondi: Yeah, well, we're hoping that in New York, Mayor Adams is going to cooperate with us with the sanctuary cities and the illegal aliens. Has the mayor in Colorado been cooperating? Do we know? I believe he might have now. Yeah, I believe Colorado is now cooperating. That's what we want. We don't want to sue you. We don't want to prosecute people. We want people to comply with the law. This is very simple. An MS-13 member murdered her daughter. That's happening throughout this country. We have one angel mom is too many, and we have angel moms throughout this country who should not be going through this. Comply with the law. You know, this is the last thing we want to be doing. We want to be out there, all of us, fighting violent crime.

Pam Bondi: Yet we're fighting illegal aliens, and that ends, and it's gonna end today.

Operator: That's all we have time for, guys. Thank you.

Pam Bondi: Thank you. Thank you all.

Operator: Thank you.

Pam Bondi: Good afternoon. I'm sorry we were a little bit late. I was in the West Wing swearing in Tulsi Gabbard, and so I just came straight back here. Thanks for being patient with us with the delay. We're here today because we have filed charges against the state of New York. We have filed charges against Kathy Hochul. We have filed charges against Letitia James and Mark Schroeder, who is with DMV. This is a new DOJ, and we are taking steps to protect Americans, American citizens, and angel moms like the mom standing right behind me, who you're gonna hear from in a moment. New York has chosen to prioritize illegal aliens over American citizens. It stops today. As you know, we sued Illinois, and New York didn't listen. Now you're next.

Tammy Nobles: Thank you for having me here today and being able to share Kayla's story. Her murderer was able to come across the border knowing that he was flagged as an MS-13 gang member, and he had a criminal record in 2020 in El Salvador for illicit gang activity. He came over as an unaccompanied alien child, saying that he was afraid of gang activity in his country. Health and Human Services called him a nice boy, and he showed age-appropriate behavior. That fell so wrong when he murdered my daughter. He ended up in Maryland, where he was able to rent a room in the same mobile home as her. We thought it was a legit company that were renting out these rooms, but it turned out that it was a another illegal immigrant who owned these mobile homes, and he knew Walter from El Salvador.

Tammy Nobles: He knew him and allowed him to rent a room with my child. Kayla just turned 20 years old three days before she was murdered. Her murderer was only living there for five days before he viciously strangled her, raped her, and left her on the floor like trash and robbed her of six dollars. I have been sharing her story for over two and a half years to bring change because this should not have ever happened to Kayla, and it shouldn't be happening to other families being hurt by the border. Homeland Security did not do their jobs. They did not check his background. You know, they did say that he was processed. If they processed him, they knew that he was a gang member and still allowed him here.

Tammy Nobles: Health and Human Services did not verify the sponsor and allowed him to go with a sponsor that they don't even know if it was his cousin or his aunt, and he was able to leave the sponsor's house to go wherever he wanted. I am going to continue sharing Kayla's story to help save others and to bring awareness of what was happening under the Biden/Harris administration. I'm so thankful for Pam having me here today, and I'm so thankful for the opportunities I got from Trump and any other platform, you know, people who allowed me to share her story, because this is going to end.

Laura Barrón-López: No other parents should suffer by having their child murdered by somebody that shouldn't be here. I'm gonna continue, you know, sharing it and for Kayla, you know, and also for others. Thank you.

Pam Bondi: It's my understanding that he also admitted to other murders. Correct? Multiple gang murders.

Laura Barrón-López: He wrote a letter, and it was intercepted in jail that he committed 4 murders and 2 rapes.

Pam Bondi: That's who we were letting walk into our country, and that's why President Trump has directed this to stop. If you don't comply with federal law, we will hold you accountable. We did it to Illinois, strike one. Strike two is New York. If you are a state not complying with federal law, you're next. Get ready. The great men and women of law enforcement are standing behind me today. We have FBI, DHS, DEA, and ATF agents. They put their lives on the line every single day to protect us. What New York has is they have green light laws, meaning they're giving a green light to any illegal alien in New York where law enforcement officers cannot check their identity if they pull them over. Law enforcement officers do not have access to their background.

Pam Bondi: If these great men and women pull over someone and don't have access to their background, they have no idea who they're dealing with, and it puts their lives on the line every single day. Violent criminals, gang members, drug traffickers, human smugglers will no longer terrorize the American people, and that is why we are here today. You will be held accountable if you do not follow federal law. It's over. It ends, and we're coming after you. Questions?

Operator: We have time for a few questions. David Spunt with Fox News.

David Spunt: Madam Attorney General, thank you and welcome to the Justice Department.

Pam Bondi: Thank you.

David Spunt: I have a quick on-topic and a quick off-topic question.

Pam Bondi: Sure.

David Spunt: On topic, in your executive order or in your orders on the first day you were here, you talked about working with the Justice Department or the sanctuary cities, as you say-

Pam Bondi: Yeah

David Spunt: Will be punished. Today, you're putting people on notice. Right now, we're just lawsuits. Is this gonna go further? What kind of punishment are we talking about? Is there any grounds to charge individuals, charge politicians? How far is this gonna go?

Pam Bondi: Well, we're gonna see what they do next, David. We have sued them all. We personally sued the governor, the Attorney General Letitia James, and Mark Schroeder with DMV because he has the green light laws. What they have to do, they have to start complying with federal law. If they don't, we're gonna appeal it, and we will win. They have to comply with federal law. Did you have a second question?

David Spunt: I did have a second off-topic question.

Pam Bondi: Mm-hmm.

David Spunt: In this regard to the judiciary, today, Elon Musk, who has enormous influence in the Trump administration, posted on X, quote, "There needs to be an immediate wave of judicial impeachments, not just one." As the Attorney General of the United States, how do you respond to that?

Pam Bondi: Sure.

David Spunt: Should the process work out in the courts before we talk about judicial impeachments? I mean, these are just TROs now at this time. Shouldn't these just play out?

Pam Bondi: Yeah. I haven't seen Elon Musk tweet. He is a friend of mine. He is a great man. I think he's very frustrated with what's happening in our federal government. You know, at USAID alone, they are giving out $ billions that should not be distributed. We're going to back him up. You know, we work our whole lives in this country, and we all pay taxes in this country. For people to find out that $2 million is going to Guatemala for sex changes is outrageous. We're gonna back up Elon Musk every way we can. That includes lawsuits against these people who are doing that, and we will be successful.

David Spunt: Do you have concerns about judicial impeachment?

Operator: Margaret Josephs.

Laura Barrón-López: Hi.

Pam Bondi: Hi.

Laura Barrón-López: I also have an on-topic and an off-topic.

Pam Bondi: Sure.

Laura Barrón-López: First of all, can you just briefly walk us through what the legal claims are you're making in this lawsuit?

Pam Bondi: Yeah. Absolutely. The green light laws are. This is what the green light law says. It's a green light to illegal immigration, which says they can comply. That law is unconstitutional. They can't do that. What they've done is they have a tip-off provision that requires New York's DMV commissioner to promptly inform any illegal alien when a federal immigration agency has requested their information. Think about the men and women in law enforcement behind me. That's basically. It's tipping off an illegal alien, and it's unconstitutional. That's why we filed this lawsuit, and that's why we charged Mark Schroeder too, because he runs DMV. Oh, I'm sorry. You had a second question.

Laura Barrón-López: Yeah. My off-topic question. I wanted to ask about Mayor Eric Adams' case.

Pam Bondi: Yes.

Laura Barrón-López: As of at least a few moments ago, FDNY still has not dropped that case. Have you, or other DOJ leadership spoken to the acting U.S. attorney and FDNY since the memo was sent earlier this week? What will you do if she refuses to drop the case?

Pam Bondi: I have not spoken to her. I know our acting DAG, Emil Bove, has spoken to her. Chad Mizelle may have spoken to her, but that case should be dropped. It was done at the directive of Emil, so that case should be dropped. I did not know that it had not been dropped yet, but I'll certainly look into that.

Operator: Reagan, Daily Caller.

Reagan Reese: Hi. Thank you.

Pam Bondi: Hi. How are you?

Reagan Reese: Tom Homan suggested this week that someone from within the FBI may be leaking information about-

Pam Bondi: Mm-hmm

Reagan Reese: The ICE raids, and that such could be putting officers' lives at risk. Has the DOJ gotten any closer to determining if these leaks are coming from within the FBI? What will the consequences be if they can identify the leakers from the FBI?

Pam Bondi: Excuse me. Well, first, I can't talk about anything that is ongoing, and that is ongoing. It's really for the similar reasons what I said earlier. The great men and women in law enforcement standing behind me today, they deserve. They must be protected. If any time anyone leaks or tips off anything regarding a pending investigation, that jeopardizes lives. You're telling a bad guy what's about to happen. It could jeopardize the lives of all the men and women in law enforcement. We will not stand for it. We will find you. We're going to investigate it, no matter what agency it came from. We don't know for certain.

Operator: Okay, guys, time for one more, Milana Austin, Newsmax.

Milana Austin: Hi. Madam.

Pam Bondi: Hi, Milana

Milana Austin: Attorney General, thank you so much for your time. I was also interested in hearing specifically what the interactions have been like with Mayor Adams, and I know he has a little bit of a different tone than some of the other Democrats out of the Empire State. Then also Denver Mayor Mike Johnston. Before President Trump went back into office, he had issued some words about a potential standoff and then walked that back. I was curious to see what things have been like out of New York City and Denver officials.

Pam Bondi: Yeah, well, we're hoping that in New York, Mayor Adams is going to cooperate with us, with the sanctuary cities and the illegal aliens. Has the mayor of Colorado been cooperating? Do we know? I believe he might have now. Yeah, I believe Colorado is now cooperating. That's what we want. We don't wanna sue you. We don't wanna prosecute people. We want people to comply with the law. This is very simple. An MS-13 member murdered her daughter. That's happening throughout this country. We have one angel mom is too many, and we have angel moms throughout this country who should not be going through this. Comply with the law. You know, this is the last thing we want to be doing. We wanna be out there, all of us, fighting violent crime, yet we're fighting illegal aliens, and that ends, and it's gonna end today.

Operator: All right. That's all we have time for, guys. Thank you.

Pam Bondi: Thank you. Thank you all.

Operator: Thank you.

Pam Bondi: Thank you.

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Karoline Leavitt: Phone with President Zelenskyy of Ukraine. The truth is as follows: I just spoke to President Zelenskyy of Ukraine. The conversation went very well. He, like President Putin, wants to make peace. We discussed a variety of topics having to do with the war, but mostly the meeting that is being set up on Friday in Munich, where Vice President JD Vance and Secretary of State Marco Rubio will lead the delegation. I am hopeful that the results of that meeting will be positive. It is time to stop this ridiculous war where there has been massive and totally unnecessary death and destruction.

Karoline Leavitt: God bless the people of Russia and Ukraine." I myself just spoke to the President about these calls, and he told me to tell all of you they were very good calls, they were very positive, and the administration is wholeheartedly committed to a peace deal to end, once and for all, the Russia-Ukraine war. More on that later. I'm sure you'll have more questions to ask. This week, the President has continued to deliver on his promises to the American people. According to new polling that was released at the beginning of this week by CBS News, an overwhelming 70% of Americans said that President Trump is following through on what he pledged to do during his historic campaign. The poll also revealed that Americans see President Trump as a tough, energetic, focused, and effective leader, fighting hard to improve their lives and our country.

Karoline Leavitt: Yesterday, in particular, was a truly special day for the United States of America. Thanks to the great leadership of President Trump and the strong and tough leadership of President Trump, Marc Fogel, an American teacher detained by Russia, was returned to American soil and met with the President here at the White House last night. Special Envoy Steve Witkoff and the rest of President Trump's incredible national security team helped to negotiate the exchange that secured Marc Fogel's release. This event shows a good faith effort from Russia, and it's a sign, as I just said, that we are moving in the right direction to end this brutal war. Malphine Fogel, Marc's 95-year-old mother, was understandably very worried that she would never see her son again after his arrest in 2021. Mrs.

Karoline Leavitt: Fogel was actually slated to join President Trump on stage at the 13 July Butler, Pennsylvania rally to speak out for Marc, and then the infamous assassination attempt against President Trump took place. That day, before the rally, President Trump promised Marc's mother that when he returns to the White House, he would bring her son home. God saved President Trump's life on that day in Butler, Pennsylvania, and now Marc Fogel is back home safely with his family as a result. God is good. The President also continues to bring back common sense to our government. This week, he signed an EO to end the procurement and forced use of paper straws. Taxpayer dollars were wasted on these non-functional and massively unpopular products for no other reason than it made radical activists feel good about themselves.

Karoline Leavitt: On trade, President Trump continues to take bold action to protect America's critical steel and aluminum industries, much like he did in his first term. The President signed proclamations to close existing loopholes and exemptions to restore a true 25% tariff on steel and elevate the tariff on aluminum to 25% as well. This administration believes these tariffs will protect our national security and put American workers first. In the Oval Office yesterday with Elon Musk, President Trump took further action to make our federal government more efficient and effective. He signed an EO implementing the DOGE Workforce Optimization Initiative. Now, agency heads will coordinate and consult with DOGE to significantly shrink the size of the federal workforce and limit hiring to essential positions only. The unaccountable bureaucracy will finally be reined in.

Karoline Leavitt: On another important matter this morning, Senate Republicans continued to confirm President Trump's exceptionally qualified nominees, most recently, Director of National Intelligence, Tulsi Gabbard, who will be joining us later at the White House for her swearing-in ceremony. It's imperative that the remainder of the President's cabinet nominees are confirmed as quickly as possible. On another important matter this week, illegal alien criminals continue to be arrested and sent home as part of the ongoing mass deportation effort of the Trump administration. Just this week, two planes with 190 Venezuelan illegal aliens arrived in the Venezuelan capital from Fort Bliss, Texas. Here are some of the criminal illegal aliens who were arrested in the country this past week. ICE Atlanta arrested a citizen of Nigeria who had been convicted of money laundering.

Karoline Leavitt: ICE San Antonio arrested a citizen of Mexico who had been convicted of assault. ICE Denver arrested a citizen of Mexico who had been convicted of aggravated assault. ICE Houston arrested a citizen of Mexico who had been convicted of aggravated assault. Now, before I take questions, I would like to address an extremely dishonest narrative that we've seen emerging over the past few days. Many outlets in this room have been fear-mongering the American people into believing there is a constitutional crisis taking place here at the White House. I've been hearing those words a lot lately. In fact, the real constitutional crisis is taking place within our judicial branch, where district court judges in liberal districts across the country are abusing their power to unilaterally block President Trump's basic executive authority.

Karoline Leavitt: We believe these judges are acting as judicial activists rather than honest arbiters of the law, and they have issued at least 12 injunctions against this administration in the past 14 days, often without citing any evidence or grounds for their lawsuits. This is part of a larger concerted effort by Democrat activists and nothing more than the continuation of the weaponization of justice against President Trump. Quick newsflash to these liberal judges who are supporting their obstructionist efforts, 77 million Americans voted to elect this president, and each injunction is an abuse of the rule of law and an attempt to thwart the will of the people.

Karoline Leavitt: As the president clearly stated in the Oval Office yesterday, we will comply with the law and the courts, but we will also continue to seek every legal remedy to ultimately overturn these radical injunctions and ensure President Trump's policies can be enacted. Here in our new media seat today, we have Chris Pavlovski, an entrepreneur who has a strong passion for protecting freedom of speech. Chris started the video-sharing platform Rumble in 2013 with a mission of protecting a free and open internet from censorship by big tech and governments around the globe. The platform has always been a place for independent creators to share their authentic opinions, and they have always included President Trump, in contrast to the way he was censored by other platforms in years past.

Karoline Leavitt: Since its founding, Rumble has grown exponentially, recently marking 67 million monthly active users. It's a lot of users. If you're watching right now and interested in sitting in this seat, you can apply, whitehouse.gov/newmedia, media. With that, I will take your questions. Chris, why don't you kick us off on this very busy news day?

Speaker 17: Karoline, thank you very much to you and President Trump. It's an honor to be sitting here in the new media seats for the White House press briefing and to be able to demonstrate why freedom of expression is so important. Rumble was the victim of censorship at the hands of multiple foreign governments. It's clear there are still many countries who oppose free speech and even target American companies. Can you describe what the administration will do to protect US interests and values worldwide?

Karoline Leavitt: Sure. Well, thanks for the very important question. I think that free speech and ending censorship both here at home and also abroad is an important part of President Trump's agenda. I think. First, President Trump has led by example on this front, as the leader of the free world, the President of the United States, with his show of access and transparency on a daily basis. The president takes questions from all of you, almost every single day, and really reveals what he's thinking, and feeling, and I think that serves as a great example to the rest of the world.

Karoline Leavitt: As for tangible actions that the president has signed, he did sign an executive order, I believe on day one, certainly within the first week of this administration, to restore free speech and stop government-sponsored censorship here at home. The EO made it very clear that federal employees are not allowed to engage in any activity that would infringe upon the American people's right of free expression. I think the president has led quite strongly on this. I would just add this is part of the reason we have a new media seat, to invite new voices into this room. Again, we're gonna need to expand this room 'cause so many people are interested, and we're very excited about that. It's a privilege to cover this White House, but we want all voices to be heard.

Karoline Leavitt: Thanks for being with us here, Chris, and I hope you enjoy the briefing. Sure. Jordan.

Speaker 18: Thanks, Caroline. Data out this morning showed that consumer prices were up across a variety of goods, and just before that report, though, President Trump called for lower interest rates. The Fed said it's holding rates steady to try and tamp down further inflation. How would lowering rates help keep inflation in check for the American people?

Karoline Leavitt: Sure. Well, first of all, on the inflation point, we did receive those numbers, and they were worse than expected, which tells us that the Biden administration indeed left us with a mess to deal with. It's far worse than I think anybody anticipated because unfortunately the previous administration was not transparent in where the economy truly was. We know people at this very podium told the American people that inflation was transitory, and that it would go away. That was not the case. Now the last report of the Biden administration, as revealed today, shows that inflation is still about 4.5% higher over the past three months. This is an indictment on the Biden administration's mismanagement of the inflation crisis and their lack of transparency in addressing it.

Karoline Leavitt: As for tackling inflation and interest rates, the president has made his position on this very clear. He wants interest rates to be lower, he wants inflation to be lower, and he believes that the whole of government economic approach that this administration is taking will result in lower inflation. I have said that from this podium many times. The president had record low interest rates and inflation rates in his first term. He believes that the economy can handle it and withstand it. We're doing a lot to tackle the inflation effort on this front. It's a whole of government economic approach, and I've talked about what we're doing to tackle inflation quite a few times from this podium.

Speaker 18: Do you believe that for reciprocal tariffs, that's gonna come before Prime Minister Modi's visit tomorrow?

Karoline Leavitt: I do believe it will come before the prime minister's visit tomorrow, and I will let the president discuss the details on the reciprocal tariff front. This is something he believes strongly in, and it's very simple logic as to why the president wants to impose reciprocal tariffs. It's the golden rule, which we all learned, when we were growing up in school. Treat others the way you want to be treated. Far too many nations around this world have been ripping off the United States of America for far too long, and that's why the president believes this will be a great policy that will benefit American workers and improve our national security. JJ.

Speaker 19: On DOGE and the fraud claims, Elon Musk in the Oval yesterday gave us some information on that. We're just wondering if there's some proof, evidence. Is the White House willing to share?

Karoline Leavitt: Mm-hmm

Speaker 19: Evidence of those fraud claims, or can Elon Musk come to the briefing room and share material evidence of what he's talking about?

Karoline Leavitt: Sure, I would love for Elon Musk to come to the briefing room. That's why we had him go to the Oval Office yesterday, where I think he provided great answers. He was speaking in layman's terms, speaking common sense, to all of you in the media, but also to Americans at home. I would say especially to all of you in the media, 'cause I think it's a real fallacy that there's this alleged lack of transparency when it comes to DOGE. President Trump and Elon Musk have been incredibly transparent on what DOGE is doing. There is an X account with the DOGE handle. They are tweeting out what they are doing on a daily basis.

Karoline Leavitt: They have a website where they are posting the receipts of the contracts that they are reviewing and the payments that they have stopped from going out the door, the secretaries of our department have stopped from going out the door. I would also say that before it was Elon Musk making our government efficient and accountable, it was some unnamed bureaucrat that none of you knew. Elon Musk is the richest man in the world. He's also now one of the most highly scrutinized men in the world, alongside President Trump, because of what he's doing and the access that he is allowing. There's great transparency. As for the actual receipts, we are happy to provide them, and I actually brought some today because all of you know I love to bring the receipts.

Karoline Leavitt: We have contracts upon contracts that we can send and provide this information to you. Let me be very clear. We are not trying to hide anything. We have been incredibly transparent, and we will continue to be. These are screenshots of contracts that DOGE found across our government. This is a DEI contract, $36,000 for U.S. Citizenship and Immigration Services. That is against the president's policies and his America First agenda. This is a $3.4 million contract, a council for inclusive innovation at the United States Patent and Trademark Office, Department of Commerce, another DEI contract that DOGE identified. I can continue to go through these. Oh, I love this one. $57,000 for climate change in Sri Lanka. What is this doing to continue the interests of the American people? Absolutely nothing.

Karoline Leavitt: These are the line items across the federal government that DOGE is identifying daily. They're moving very fast. There's a lot of paper that we can show you, but we're happy to do it. This administration has been more than transparent about what DOGE is doing, and here's one of their tweets that they posted about the mine. I believe this is in Pennsylvania, where the Federal Employees Retirement System is being processed. Did anybody know this was even happening in our country before Elon Musk talked about it in the Oval Office yesterday? A lot of Americans didn't. We are providing transparency and accessibility on a daily basis when it comes to DOGE, and I also have a DOGE daily report, if anybody would like it, on all of the things that they are identifying and finding. We're happy to provide this information to you.

Speaker 19: One more-

Karoline Leavitt: We're talking about it every single day.

Speaker 19: Are all those things you just mentioned fraud, or are they waste, or are they just contrary to the president's?

Speaker 19: Are all those things you just mentioned fraud, or are they waste, or are they just contrary to the president's policies?

Karoline Leavitt: ... policies. I would argue that all of these things are fraudulent, they are wasteful, and they are an abuse of the American taxpayer's dollar. This is not what the government should be spending money on. It's contrary to the president's priorities and agenda. We can continue to provide you the receipts for all of the fraud, waste, and abuse. If anybody in here wants to argue that the federal government is not fraudulent in some capacity, be my guest, 'cause I think the American people watching at home would beg to differ.

Karoline Leavitt: I would argue that all of these things are fraudulent, they are wasteful, and they are an abuse of the American taxpayer's dollar. This is not what the government should be spending money on. It's contrary to the president's priorities and agenda. We can continue to provide you the receipts for all of the fraud, waste, and abuse. If anybody in here wants to argue that the federal government is not fraudulent in some capacity, be my guest, 'cause I think the American people watching at home would beg to differ.

[Analyst 1]: Caroline.

[Analyst 3]: Caroline.

Karoline Leavitt: Mary.

[Analyst 1]: Hey. More on the judges. Does the White House believe the courts have the authority to issue these nationwide injunctions?

[Analyst 3]: Hey. More on the judges. Does the White House believe the courts have the authority to issue these nationwide injunctions?

Karoline Leavitt: We believe that the injunctions that have been issued by these judges have no basis in the law and have no grounds, and we will, again, as the president said very clearly yesterday, comply with these orders. It is the administration's position that we will ultimately be vindicated. The president's executive actions that he took were completely within the law. They were constitutional. We look forward to the day where he can continue to implement his agenda. I would just add, it's our view that this is the continuation of the weaponization of justice that we have seen against President Trump. He fought it for two years on the campaign trail. It won't stop him now. Brian.

[Analyst 1]: Yes. I wanna go back to DOGE just for a second. Earlier, the subcommittee headed by Chairman Marjorie Taylor Greene, her and her staff, discovered $2.7 trillion in improper payments to Medicare, Medicaid, overseas-

[Analyst 4]: Yes. I wanna go back to DOGE just for a second. Earlier, the subcommittee headed by Chairman Marjorie Taylor Greene, her and her staff, discovered $2.7 trillion in improper payments to Medicare, Medicaid, overseas-

Karoline Leavitt: Mm-hmm

[Analyst 1]: ... to people who should not have gotten it. Some in this room might have missed that press conference. Can you elaborate on what the president is thinking at this point?

Junya Yokoyama: ... to people who should not have gotten it. Some in this room might have missed that press conference. Can you elaborate on what the president is thinking at this point?

Karoline Leavitt: Well, again, that's another example. There's a very long list of the fraud, waste, and abuse that DOGE is identifying on a daily basis. Elon Musk also talked about yesterday about Social Security payments that are going out the door for people who are no longer with us, unfortunately. I would say that is certainly a fraud. There's also a lot of contracts they've identified that, just as a hypothetical example, are $1 million, but only $500,000 went out the door. So where's the rest of that cash? And so that's the thing, those are the things that DOGE is working on every single day. I would just remind everybody in this room, this is what President Trump campaigned on doing. He's delivering on a promise that 77 million people elected him to do.

[Analyst 1]: Caroline.

[Analyst 3]: Caroline.

Karoline Leavitt: James.

[Analyst 1]: Thank you very much, Caroline. Two foreign policy questions, if I may.

[Analyst 5]: Thank you very much, Caroline. Two foreign policy questions, if I may.

Karoline Leavitt: Sure.

[Analyst 1]: First, the statement that was released after this morning's phone call identified Mr. Witkoff as the special envoy who will be part of the delegation that undertakes to resolve the Russia-Ukraine war. I had thought that that individual was General Kellogg, so can you clear that up?

[Analyst 5]: First, the statement that was released after this morning's phone call identified Mr. Witkoff as the special envoy who will be part of the delegation that undertakes to resolve the Russia-Ukraine war. I had thought that that individual was General Kellogg, so can you clear that up?

Karoline Leavitt: Sure, I'd be happy to. As you mentioned, the president in his Truth following the phone call with Vladimir Putin said that he has asked Secretary of State Rubio, the Director of the CIA, John Ratcliffe, our National Security Advisor here at the White House, Michael Waltz, and Steve Witkoff to lead the negotiations. As for General Keith Kellogg, he remains a critical part of this team and this effort. He's played a tremendous role in getting the negotiations to this point, and he's very much still part of the Trump administration.

[Analyst 1]: The other subject is Iran. I took note of President Trump's comments in his Super Bowl interview with our colleague, Bret Baier, to the effect that he wants to do a deal with Iran.

[Analyst 5]: The other subject is Iran. I took note of President Trump's comments in his Super Bowl interview with our colleague, Bret Baier, to the effect that he wants to do a deal with Iran.

Karoline Leavitt: Mm-hmm.

[Analyst 1]: However, that interview appeared after the Supreme Leader of Iran, the Ayatollah Ali Khamenei, had already ruled out any additional negotiations with the United States. Kind of a two-part question. A, what gives the president any confidence that Iran will come to the table? And B, more fundamentally, why is the president interested in doing a deal with Iran instead of doing everything he can, perhaps short of US military intervention, to try and hasten the end of what many of his own supporters regard as an evil regime?

[Analyst 5]: However, that interview appeared after the Supreme Leader of Iran, the Ayatollah Ali Khamenei, had already ruled out any additional negotiations with the United States. Kind of a two-part question. A, what gives the president any confidence that Iran will come to the table? And B, more fundamentally, why is the president interested in doing a deal with Iran instead of doing everything he can, perhaps short of US military intervention, to try and hasten the end of what many of his own supporters regard as an evil regime?

Karoline Leavitt: Well, the president has made it very clear that he will never allow Iran to have nuclear capabilities. That is a red line that he has drawn, and he will not allow that to happen. You asked why President Trump wants to make a deal. I would remind you, he's the master of the art of the deal. He is America's dealmaker in chief. He leads from a position of securing peace through strength, and I think time and time again already in just four weeks, we have seen the president being able to negotiate successful deals with, our partners, our adversaries all around this world. You know, the release of Marc Fogel just last night, is something that I think speaks to the president's deal-making ability. This is something that the Biden administration allegedly tried to do for three and a half years.

Karoline Leavitt: I think you all should go back and ask some of those Biden administration officials what they even tried to do and why weren't they successful, because for 3 and a half years, Marc Fogel sat in a Russian prison, and it took President Trump 3 weeks to get him back on American soil. There's nobody better at making deals than Donald Trump.

[Analyst 1]: Caroline.

Junya Yokoyama: Caroline.

Karoline Leavitt: Philip Wegmann.

[Analyst 1]: Thank you. Two foreign policy questions. Ukrainian President Zelenskyy has said after the war that he wants NATO membership or nuclear weapons.

Philip Wegmann: Thank you. Two foreign policy questions. Ukrainian President Zelenskyy has said after the war that he wants NATO membership or nuclear weapons.

Karoline Leavitt: Mm-hmm.

[Analyst 1]: We heard Defense Secretary Hegseth say that NATO membership was unrealistic. What's the president's view on the other option, on a nuclear Ukraine?

Philip Wegmann: We heard Defense Secretary Hegseth say that NATO membership was unrealistic. What's the president's view on the other option, on a nuclear Ukraine?

Karoline Leavitt: I have not talked to President Trump about Ukraine's NATO membership or their nuclear capabilities. I would leave it to him to discuss. I will tell you again that Secretary Rubio, and also the Vice President, JD Vance, will be meeting directly with President Zelenskyy in Munich on Friday, and I'm sure they will provide a readout of that conversation and that discussion.

[Analyst 1]: The second question, given that this administration has called on Europe to take, you know, more responsibility for their own defense, I'm wondering will the EU or any other European nation other than Ukraine be involved in these peace talks?

Philip Wegmann: The second question, given that this administration has called on Europe to take, you know, more responsibility for their own defense, I'm wondering will the EU or any other European nation other than Ukraine be involved in these peace talks?

Karoline Leavitt: I don't have any European nations who are involved currently to read out for you. Certainly, you know, the president has employed a very strong team or deployed a very strong team to continue these negotiations, and the fact that he was on the phone with both President Putin and President Zelenskyy today shows that he's very much involved in this effort as well.

[Analyst 1]: Just a follow-up, I guess.

Philip Wegmann: Just a follow-up, I guess.

Karoline Leavitt: Sure.

Operator: Should we expect the president to negotiate in person with Zelenskyy and Putin?

Philip Wegmann: Should we expect the president to negotiate in person with Zelenskyy and Putin?

Karoline Leavitt: I don't have anything to read out on that for you today.

Speaker 20: Hello, Karoline.

Karoline Leavitt: Maggie, good to see you.

Speaker 20: Hi. Thanks. Thanks for taking the question. You talked about the transparency with DOGE and Elon Musk's press availability yesterday. There is a conflict of interest law in place that says that people who have personal interests can't interact with government entities that could touch on those. Has President Trump signed a waiver for Elon Musk? Does such a thing exist? If it does, will you guys release it in the interest of transparency that he's committed to or not?

Karoline Leavitt: I have not seen the law that you are referring to. What I can tell you is that Elon Musk, as I've confirmed before, is a special government employee. He is filing the proper financial disclosure, and he is complying with all applicable federal laws. As you also heard, Elon addressed this directly yesterday in the alleged conflict of interest, and he said everything he's doing is very public, and if you all perceive a conflict of interest, you're welcome to bring that up. As the president said, if he feels like Elon is engaging in something that's a conflict of interest, he will tell Elon not to do that. Elon also said yesterday that before he moves forward with anything, he consults with the President of the United States.

Karoline Leavitt: We're very confident with the ethics and the guardrails that have been put in place here. Kaitlan.

Speaker 20: Thanks, Karoline. I have a few things for you, but on the commitment by President Trump, he said that he and President Putin agreed to visit each other's respective nations. Are there any preconditions that President Trump has that President Putin must do before he goes and meets with him? Withdrawing some forces, withdrawing all forces, anything like that?

[Analyst 6]: Thanks, Karoline. I have a few things for you, but on the commitment by President Trump, he said that he and President Putin agreed to visit each other's respective nations. Are there any preconditions that President Trump has that President Putin must do before he goes and meets with him? Withdrawing some forces, withdrawing all forces, anything like that?

Karoline Leavitt: Not that I'm aware of. That doesn't mean they don't exist, but I was just talking with the president and our national security team. I wasn't made aware of any conditions. If they exist, I'm happy to provide those.

Speaker 20: on the president himself, you know, he styles himself as this master negotiator. He is now deploying these negotiations, saying that they start immediately.

[Analyst 6]: on the president himself, you know, he styles himself as this master negotiator. He is now deploying these negotiations, saying that they start immediately.

Karoline Leavitt: Mm-hmm.

Speaker 20: We did hear from the Defense Secretary, Pete Hegseth, though, today saying that NATO membership is not realistic for Ukraine and neither is returning to pre-2014 borders. Aren't they giving away bargaining chips before these negotiations have even started?

[Analyst 6]: We did hear from the Defense Secretary, Pete Hegseth, though, today saying that NATO membership is not realistic for Ukraine and neither is returning to pre-2014 borders. Aren't they giving away bargaining chips before these negotiations have even started?

Karoline Leavitt: Again, I haven't talked to the president about Ukraine's NATO membership, and he appointed several individuals to negotiate on his behalf. He's directly involved in these negotiations as well. I'm sure if you ask him that question in the near future when you're able to, he'll give you an answer. I just don't want to get ahead of him on it.

Speaker 20: Final thing for you. Which White House official made the decision to bar the AP reporter from the Oval Office and the Diplomatic Reception Room last night?

[Analyst 6]: Final thing for you. Which White House official made the decision to bar the AP reporter from the Oval Office and the Diplomatic Reception Room last night?

Karoline Leavitt: Well, first of all, let me just set the record straight. It is a privilege to cover this White House. It's a privilege to be the White House press secretary. Nobody has the right to go into the Oval Office and ask the President of the United States questions. That's an invitation that is given, and there are hundreds of outlets on this campus, many of you in this room, who don't have the privilege of being part of that pool every single day and getting to ask the President questions. We reserve the right to decide who gets to go into the Oval Office. You all have credentials to be here, including the Associated Press, who is in this briefing room today.

Speaker 20: Isn't it retaliatory in nature? Is the argument? Because the reason that the AP was barred, which they said was because they're not using the phrase Gulf of America, they're using Gulf of Mexico in line with their standards. The question here is this setting a precedent that this White House will retaliate against reporters who don't use the language that you guys believe reporters should use? How does that align with the First Amendment commitment that you were just talking about?

[Analyst 6]: Isn't it retaliatory in nature? Is the argument? Because the reason that the AP was barred, which they said was because they're not using the phrase Gulf of America, they're using Gulf of Mexico in line with their standards. The question here is this setting a precedent that this White House will retaliate against reporters who don't use the language that you guys believe reporters should use? How does that align with the First Amendment commitment that you were just talking about?

Karoline Leavitt: I was very upfront in my briefing on day one, that if we feel that there are lies being pushed by outlets in this room, we are going to hold those lies accountable. It is a fact that the body of water off the coast of Louisiana is called the Gulf of America, and I'm not sure why news outlets don't want to call it that, but that is what it is. The Secretary of Interior has made that the official designation in the geographical identification name server, and Apple has recognized that. Google has recognized that. Pretty much every other outlet in this room has recognized that body of water as the Gulf of America, and it's very important to this administration that we get that right, not just for people here at home, but also for the rest of the world. Sure.

Speaker 20: Thank you, Karoline. The prisoner exchange with Russia coming at the same time as the president is now announcing negotiations to end the war in Ukraine, the timing of that is hard to ignore. Was Ukraine discussed as part of this prisoner swap?

[Analyst 7]: Thank you, Karoline. The prisoner exchange with Russia coming at the same time as the president is now announcing negotiations to end the war in Ukraine, the timing of that is hard to ignore. Was Ukraine discussed as part of this prisoner swap?

Karoline Leavitt: I was not involved in those discussions, so I can't comment on whether that came up or not. What I can say is that this was a very good deal for the United States of America and for the rest of the world. As you know, we have confirmed that the Russian who will be returning home very soon, Alexander Vinnik, was a non-violent crypto criminal, and as part of this exchange, he has forfeited more than $100 million that he obtained in that illegal crime. In exchange, of course, we got Marc Fogel, who is a middle school teacher, who kissed the American soil, that kissed the ground last night when he returned to the United States of America.

Karoline Leavitt: It was a great deal and a great day for our country, and I think everybody, regardless of political affiliation, agrees with that. Weijia.

Speaker 20: Was Russia made aware ahead of time of the parameters that the administration and Secretary Hegseth was going to be announcing today?

[Analyst 7]: Was Russia made aware ahead of time of the parameters that the administration and Secretary Hegseth was going to be announcing today?

Karoline Leavitt: The NATO parameters?

Speaker 20: Yeah.

[Analyst 7]: Yeah.

Karoline Leavitt: I'm not sure. You'd have to ask Secretary Hegseth and the Defense Department on that.

Speaker 20: Follow-up.

[Analyst 7]: Follow-up.

Karoline Leavitt: since he announced them.

Speaker 20: Follow-up on Russia.

[Analyst 8]: Follow-up on Russia.

Karoline Leavitt: Jackie.

Operator: Thank you, Karoline. Just to be clear, when we're listening for a shift in position on US policy, should we only listen to the president and maybe not the secretary of defense? 'Cause what he outlined today would represent a shift in US policy.

[Analyst 8]: Thank you, Karoline. Just to be clear, when we're listening for a shift in position on US policy, should we only listen to the president and maybe not the secretary of defense? 'Cause what he outlined today would represent a shift in US policy.

Karoline Leavitt: I'm not saying that. I'm just saying I speak for the President of the United States behind this podium, and I will let him discuss that. Weijia.

Operator: Can you tell us any more about the next hostage releases? I understand that.

[Analyst 9]: Can you tell us any more about the next hostage releases? I understand that.

Karoline Leavitt: Yeah

Operator: Americans coming out today.

[Analyst 9]: Americans coming out today.

Karoline Leavitt: Sure. I'm glad you asked. It speaks to President Trump's deal-making ability. We can confirm the safe release of one American, and two individuals from Belarus, one of whom worked for Radio Liberty. Out of respect for the privacy of these individuals, at their request, we have no further details to announce on their identities. We can confirm that one American was released today, and it's a remarkable victory, on the heels of Marc Fogel returning to America last night.

Operator: Anything on who the US might be releasing in exchange?

[Analyst 9]: Anything on who the US might be releasing in exchange?

Karoline Leavitt: I don't have details on that at this moment.

Operator: Anyone in particular?

[Analyst 9]: Anyone in particular?

Karoline Leavitt: I don't have details on that at this moment. I do know that these three individuals have been released and are on their way home to their respective countries. Weijia.

Operator: Karoline, thank you so much. Can you explain how President Trump envisions the war in Russia and Ukraine coming to an end? Does he expect Ukraine to hand over all the territory in question?

[Analyst 7]: Karoline, thank you so much. Can you explain how President Trump envisions the war in Russia and Ukraine coming to an end? Does he expect Ukraine to hand over all the territory in question?

Karoline Leavitt: Again, these negotiations are ongoing. I will allow the president to divulge any red lines that he may set, but I think, as deals in the past have come to fruition, the president has proven one of the things that makes him a very effective negotiator is not revealing what he's anticipating from both sides. He is at the forefront of these negotiations in addition to the very qualified individuals who he's tasked with speaking to both President Putin and President Zelenskyy.

Operator: Speaking of deals, a meeting with the President of the United States offers any pre-

[Analyst 7]: Speaking of deals, a meeting with the President of the United States offers any pre-

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