Honda Motor Company, Ltd.

Thank you very much for viewing Honda Motor Company Limited's live broadcast of financial results announcement for the second quarter of the fiscal year ending in 21. My name is Watanabe from Corporate Communications, the moderator for this announcement. First of all, I'd like to introduce the attendants attending today. We have Mr. Seiji Kureishi, Executive Vice President, Representative Director. Good to see you, everyone. And then we have Mr. Kohei Takeuchi, Senior Managing Director. Good to see you, everyone, as well. This financial results announcement with the COVID impact, we have no audience on site, and this is going to be a live broadcast. Thank you very much for your understanding and cooperation. So first of all, we'd like to have Mr. Kuraishi, Executive Vice President, to explain the financial results for this term. The COVID-19 which spread around the world since the end of the fiscal year ending in March 2020 continues to rage around the globe even today, bringing serious damages to the economy. However, in the second quarter of this fiscal year ending in 2021, economic activities have been reopened in many markets with resulting gradual recovery in demand. In some markets, the second wave of the pandemic has arrived and the situation remains unpredictable, but Honda will continue to be thorough in its actions to prevent infection and proceed to supply products to the market in a timely manner. Now, I would like to present to you the outline of the financial results for the second quarter and the full year forecast for the fiscal year ending in 2021. Starting with the unit sales of Honda Group cumulative to the second quarter of this fiscal year, it was 6,302,000 units for motorcycles, 2,045,000 units for automobiles, and 2,453,000 units for life creation business. Next, I'd like to explain the situation in each of the main markets. First, to look at the Japan market, the total market is showing a moderate recovery from the impact of the COVID-19 since May. However, due to the last-minute demand before the consumption tax hike in the previous year, the total demand was considerably lower than compared with the same period last year. Honda's unit sales undercut last year's number, but looking at the unit sales by model, N-Wagon and New Fit surpassed the sales in the same period last year, meaning a recovery in the second quarter. LBOC series set number one in new car sales for the first half of the fiscal year ending in 21. Our outlook for the total market demand for the fiscal year ending in 21 remains unchanged from the previous forecast. and it is expected to be lower than previous year. Due to the market slowdown, Honda expects to see lower sales compared to the previous year, but in view of the recent sales results, we have revised our forecast upward from the previous forecast.

In the U.S.

market, the total market demand has been gradually recovering since May due to the phased easing of regulations and economic activities and reopening of the TDO business. But demand was lower than the same period last year due to the decline in the fleet market. Honda's unit sales were lower than the same period last year, but we are seeing recovery at a better-than-market pace, mainly with CR-V and Civic, and Civic maintained the lead in this segment with its high product features. Also, at the end of September, a new TLX was launched as well. Total market demand for the full year ending in 2021. Beginning with the second half of September, COVID-19 cases have been increasing again in number, mainly in the Midwest, so the outlook remains uncertain. The forecast is for lower demand compared to the previous year. Honda expects to see lower year-on-year results in the face of this uncertainty of the market. Next, looking at China. In addition to the resumption of economic activities, consumption stimulus measures were taken so the total market exceeded the same period last year. Honda has favorable sales of models such as Breeze, Vezel, and XRV. And also in the second quarter, we launched three models, namely Civic Hatchback Fit and Envix Hybrid, which actually brought us better than market growth. From July to September, single-month sales results marked record high numbers consecutively for those three months. For calendar year 2020, the total market demand exceeded that of last year from April to September, but as the market took a huge decline due to COVID-19 in January to March, the impact of which could not be fully recovered, so the total market is expected to be lower than last year. Honda, with the launch of new models and running factories at full capacity to increase supply to the market, is aiming to exceed sales higher than previous year. We have revised our forecast upward from the previous forecast on the basis of the recent sales report. Now turning to motorcycles. The impact of COVID-19 differs significantly from one country to another. In China and in the U.S., due to the trend of using motorcycles instead of public transport, added to the heightening outdoor leisure demand, the market has almost fully recovered. On the other hand, in Asia, the largest market, in addition to the impact of COVID-19, due to the tightening of long screening criteria in Indonesia, the market contracted in Asia year on year. Honda, despite strong sales in China and the US, and in India and Brazil, we started production in June and it's steadily recovering sales, but still we saw its sales fall below the same period last year. The total market demand for the fiscal year ending in 21, we expect that even though the recovering trend continues in many markets, Indonesia will still see continued decline in personal spending due to the tightening of loans, therefore no prospect for rapid decline, that the market will be lower than the previous year. Honda expects lower sales in Indonesia and some other markets, but higher sales in markets including India, Brazil, and the U.S. So our forecast on a global basis is for sales equivalent to the previous forecast. Now moving on to the outline of the six-month results for the fiscal year ending in 2021. The first quarter brought us a very challenging situation with the impact of COVID-19. But with this environment of living with COVID, we have proceeded with solidifying our existing businesses further, and at the same time, we have made a fundamental review of our business activities across all areas to secure a strong, resilient business constitution that supports future growth. As a result, better control of SG&A expenses and cost reduction, those brought us a turnaround from the first quarter, bringing an operating profit of 169.2 billion yen for the sixth month. Profit for the period under review was due to the contribution from profit from investment based on the equity method. It was 160.0 billion yen. Unit sales and income statement are as shown on the slide shown here. Moving on to the forecast for the fiscal year ending in 21. For unit sales, we have increased our automobile forecast from the previous forecast considering the favorable sales in China and other markets, and also increased our life creation business forecast in view of the strong sales in North America. For operating profit, incorporating the business constitution reinforced in the first half, where our estimate is 420.2 billion yen, an upward revision of 220.0 billion yen from the previous forecast. Though the future of the market remains uncertain due to the COVID-19, but with our initiatives to curb SG&A expenses and to reduce costs further, Honda will aim to enhance its business characteristics further. Profit before taxes, due to the increased investment profit share due to the equity method, are expected to be 660.0 billion yen. Once again, the unit sales and income statement are as shown. Next, about the dividend. Forecast for the full-year dividend for the fiscal year ending in 2021 is Due to the operating profit and the increased investment profit based on equity method, compared to the previously published forecast, dividend per share is increased by ¥24 to ¥68 per share, and for the end of second quarter, it will be ¥19 per share. Next, I'd like to hand over the microphone to Mr. Takeuchi, Senior Managing Director, Chief Financial Officer, to present the details of the financial results and forecast.

Thank you.

Now I am going to explain. Starting from the FY21 second quarter financial results consolidated. Honda Group unit sales of motorcycles increased in Pakistan, Philippines and Brazil but decreased in Indonesia and India. Unit sales of automobiles decreased in Japan and Indonesia and at the same time increases recorded in China and the United States. Income statement.

Sales revenue.

There was an increase in sales revenue in financial services business on one hand, decrease, however, in automobile business, and negative effects of fax translation. So it resulted in 3,651,300,000,000 yen operating profit, although there was a decrease in profit attributable to decreased sales revenue and model mix. Operating profit has stood at 292.9 billion yen due mainly to decrease in SG&A and cost reduction effects. Next, to explain changing profit before income taxes. Profit before taxes for the second quarter FY21, owing to the reduction of SGA and other efforts to cut down on costs, was ¥345.7 billion, which is up by ¥56 billion year-on-year. Operating profit, ¥282.9 billion, up by ¥62.8 billion. Performance by business segment. Operating profit in the motorcycle business was 68.4 billion yen, given decrease in cost and benefits and SG&A expenses, but due to these lower sales revenue and modem exchanges, was 68.4 billion yen.

Change in...

the overall situation was quite noticeable.

Next, turning to financial services, 93.2 billion yen. Life creation to business and others.

Sales fluctuation and tandem exchanges, so the number that you see here. For others, please note that for aircraft and aircraft engine losses which are categorized in letters and also in life creation business was 8.1 billion yen so summing up the operating profit for automobiles and automobile sales portion of the financial services was 214.6 billion yen if I 21 six months profit and losses are shown here to explain profit before tax was down by 307.1 billion yen operating profit because of the cost reduction and SG&A expenses which was offset by the revenue decline it was 169.2 billion yen down by 30.3 million yen turning to Second quarter, six months total, 57.9 billion yen. Cash-in-cash equivalents at the end of the second quarter are 2,626.5 billion yen. Net cash stood at 1,843.9 billion yen. Now to explain about FY 2021 consolidated forecasts. For the Honda Group's unit sales of motorcycle cycles are the same as previously forecast at 14.8 million yen. Automobiles offered revisions for China and Japan means the federal increase by 100,000 units at 4.6 million units. Life creation business up by 190,000 units at 5.5 million units. FY 2021 consolidated business focus as you see here. Changes from the previous fiscal year actuals due to the decline and the unit sales and also because of the sales and exchange and FX negative impact, we had positive benefits coming from the reduced S&A and other costs. So 420 billion yen operating profit is planned. And now, vis-a-vis the previous forecast made for the four-year increase in unit sales and also the cost reductions such as for SG&A and others, 220 billion yen effort revision for operating profit. Finally, FY 2021 CAPEX depreciation and amortization and R&D expenditure as you see here. And that completes my explanations to you. Thank you very much.

Thank you.

And with that, we conclude the FY 2021 Q2 results presentation. Now, from this point onward, we are going to receive questions from the members of the media. As we announced to you previously, we are going to receive questions through the Zoom system. We are going to resume at 15.40, 3.40 p.m. Japan time. Thank you. So until then, please wait. We are going to break for a moment. ... ... ... ... ... ... Thank you.

Thank you. Thank you. Thank you. We'll be right back. Thank you. Thank you. Thank you.

Now we are going to move on to questions and answers.

As we announced to you prior to this meeting, we are going to receive questions through the Zoom system. If you have a question, please use the hand icon on the screen. And in the interest of time, may I suggest that we limit your questions to two questions per person. If you have a question, please use the hand icon.

Okay, then we'd like to take questions from our Reporter Hanada from Nikkei newspaper. Hanada-sama. Mr. Hanada, could you turn on your microphone to ask the question, please?

Mr. Hanada?

Okay, sorry, but because he is not responding, so we'd like to proceed to the next reporter. Okay, then we'd like to take the next question from Yomiuri newspaper. Reporter Shimazato, please. Okay, this is Shimazato from Yomiuri newspaper. Can you hear us okay? Yes, we can hear you. referred to pages 13 and 16 in the material. For the second quarter sales, among the factors that contribute to the sales, the impact from the COVID-19, how much of an impact was there from COVID-19? And also, if you're looking at the first half of the fiscal year, you have a negative 488.2 billion yen How much of that is due to COVID-19, would you say? Thank you very much for the question. To answer the first question, this was for the first quarter, I believe, the factors that contributed to the fluctuations in sales, how much of an impact, sorry, for the second quarter, how much of an impact from COVID-19. And the second question was for the first half of the year, fiscal year, this 488 billion yen, of that total decline, how much of an impact from COVID-19?

Okay, then let me answer that one.

Well, are they looking at the page 13? This is, I think you're referring to the year-on-year results, a comparison. If you look at the volume mix, it's about 40 billion yen minus. So this is coming from a motorcycle from the year-on-year comparison. This is a consolidated number. This was 76,000 decline in automobile and then 240,000 decline in motorcycles. But if you ask me if that's all coming from COVID-19, that's difficult to say. So most, I believe, is due to the COVID-19. However, but if you ask me, is this all the reduction in unit sales, are they coming from COVID?

But if you look at the total,

And then all this total, this is coming from 40 billion yen decline due to this. And if you look at the six-month results, the year-on-year comparison with last year, it's about 500 billion yen decline. If you look at the motorcycles, this 2.3 million units and 640,000 units decline in automobiles. So those declines are included in here. As I explained, the results are the same. So, of course, there was no COVID last fiscal year, so was it all due to COVID-19? Of course, the factors are mixed in. Does that answer your question?

Thank you very much. So let us move on to the next question. From Nikkei newspaper, Mr. Hanada, the floor is now yours.

Thank you very much.

And sorry, I'm not being able to ask properly a few moments ago. Please wait. It seems that there is signal interference. Changes in the business environment is my growth question. Well, so long as the automobile business is concerned, the expected ban on the sales from the gasoline and the running the automobiles or the 2015, the target to get rid of from the carbon-oriented activities in Japan. So what do you think of those expectations at Honda and also in the U.S. presidential election? How the environmental regulation or the prediction may change or not so going forward as a result of the presidential election in the States? Thank you very much. There are two questions. Number one, in Europe and the United States, the prohibition to sell gas in the Mugis, the running automobiles, and Japan's announcement to get rid of from the carbon-oriented business activities in 2050. And the second big question has to do with the outcome of the U.S. presidential election. How would you consider that that may impact the future of the environmental regulation and protectionism? Thank you. Well, of late, yes, on top of the Prime Minister's declaration, the U.S., U.K., or Europe ought to acknowledge the Convention on Handling Gas Train and the operated vehicles are likely to be shifted to the new types of fuel. So the interest is becoming higher and higher towards the electrification of automobiles, among others. At present, Honda's view is that the reference to the HEV vehicles electrification or that sort of move for the engine technology. So that our aim is to electrify two-thirds of our global automobile units in 2030. That's for Honda. And all regions and different regulations, all the penetration of those mandates will be witnessed. not to mention the appetite and changes from the customers in the regions. So for each and every region, whatever would be characteristic of Honda, that is going to be our point of emphasis. That means the dealings with GM in the States, the agreement in China. So these are the exemplary arrangements. And of course, we regard that the inclusive of the electrification or the promotion of the HEV vehicles, we would like to take into consideration. Our President said, Mr. Hachiko, that we are going to aim for the realization of carbon neutrality by 2050. So that means that we have to accelerate further. We have moved towards electrification and, of course, sophisticated power units or other elements that would need to be enabled will be the areas that we are going to prioritize our resource orientation. To become carbon neutral, everything will have to change. So things that we need to do will be not only on the Honda alone, but also together with other members of the community. So energy-related research activities, we are engaged in quite actively at Honda, so that in order to realize our goal of being carbon neutral, we would like to lead the community at large. And as to the outcome of the presidential election in the United States, well, after all, the official result is not announced yet. The sooner the better to hear the official announcement of the outcome of the presidential election. Of course, the relationship between the two countries to be preserved and strengthened so that we can continue to provide our vehicles to the states. So at the same time, we also hear the protectionism may be tightened up. I really do hope that it's not going to hinder our business activities going forward. Thank you very much. Mr. Haneda, you had the second question, is that correct? Please go ahead. Mr. Haneda, was your second question? That's right. The profitability of automobile business the reform of the automobile business what is the progress to date working together with the GM and also the resulting reductions in the life creation business Okay, so GM relationship, how do we stand, and how are we able to produce the outcome of that? Okay, the profitability of automotive business has been foremostly in our mind. Now, progress with General Motors, as has been announced already, that's basically what I am able to say, only that. Because although we are in discussion with GM from various angles, there's nothing further that I can explain to you right now, right here. In any case, so that we can accelerate the electrification of automobiles, it is my belief that this relationship with GM is quite conducive. or by joining hands with GM, what we have been doing over the years, which is to make investments in the area of the gasoline running automobiles. What further utilization of those technologies we would like to consider further, and I believe that we will be able to do so, particularly now that we are working closely with GM, And time that we have established to reduce emissions, that's something that we are upholding. And because we are together with GM in these activities, we should be able to do more.

Now we have Mr. Inagaki from Asahi Newspapers. This is Inagaki from Asahi Newspaper.

I hope you can hear us.

I have two questions. You said there is a recovery from China and the U.S. But for the full year, how are you viewing this? And also, there were some restrictions on the economic activities and production stop. So how do you view that? And then for the total market and then also your company's results. That's my first question. Thank you very much.

I

I believe that your question, how do you view the recovery in total market demand in the States and the Chinese markets for the second quarter? and also you want to hear the analysis of the total market and Honda's results if this is a reaction after the first quarter.

Thank you.

The first quarter was a very challenging situation for all of us, and then we are seeing a recovery in the second quarter, and then, of course, There is uncertainty about the second wave of COVID-19 in the second half, but we believe that we will have 4.6 million units planned, which is higher than the previous one. So the unit sales is growing, focusing on China. And then we will have only 4% decline in unit sales year on year. To look at China first, Well, this is where it all started, so it was that the impact was huge. However, in the second quarter, now the full sales environment has recovered, and also CRM-MMC, CRV-MMC, FIT-FMC, so the product lineup has been strengthened. and then marketing activities have been reinforced, so we are seeing good visits to the dealers, and also we are seeing good sales, and that's why it led to good overall sales results. For the calendar year, because of those new models, new vehicle launches, we hope to see year-on-year better sales results for China. For North America, if you look at North America, Well, actually, with the easing of the economy, the second quarter is seeing a recovering trend. And then for the future, assuming that there will be no major changes coming, our forecast is that we will get about 80% compared to last year. So 14 million or so. And then for the second half of September, we are seeing new cases of COVID. So we still cannot really predict the future going forward. However, we will closely be monitoring the situation and take speedy actions together with the dealers. And Honda, the sales is recovering. In September, we've taken some initiatives and incentives, so we saw better results year on year, month on month. But for the second quarter, third quarter, we hope to aim for the second half of the year. We hope to see better results compared to last year. Thank you.

Okay, so if you have a second question, Mr. Inagaki.

Sorry, additional question. The recovery in the States, This is because the people were unable to make purchases because of the activities restricted, and then those demand came back. That was the additional question. And then if you look at the page 13, if we look at page 13, the cost reduction effect, you say, and then SG&A control, I believe they have good effects, but I'd like to hear more details about it. If you did something like reduced business trips or something like that, I'd like to hear the actual details about what you did. Talking about the second quarter, the first one is, as you say, the production, because of the lockdown, production was suspended. And so overall, the inventory level was just simply short, and we saw a shortage in inventory. And then now in the second quarter, we started seeing sales growth. That is one of the factors. However, at the same time, on the other hand, we made some efforts, initiatives in our sales activities.

And then mentioning, so we've done some incentives.

They have like over $4,000. incentive, but we provided about $1,800 incentive, so it has been lowered. So the setting expenses has been reduced, and then that's because we were getting short on inventory, so we did not have to spend that much on incentive. That's one thing. So I think I can hand over to Mr. Takeuchi for cutting cost. For year-on-year, comparing the three-month, we... had about 3 billion yen cost reduction, additional. So this goes back to the precious metal and the other raw material that's actually going up. This was like 10.6 billion yen, over 10 billion yen. So this was comparing three months and three months. So we're seeing the cumulative results from the cost reduction. And then the selling price differences. So we have about 50 billion yen plus due to the selling price adjustment and the incentive. And SG&A, of course, business trips are cut down. One big factor is within the SG&A. In North America, we have a major finance operations to sell automobiles. to make it easy for customers to buy automobiles. So we have credit losses. Depending on the defaulting, we have to book provisions for allowance for the credit defaulting. But that's gotten better. So this is 17 billion yen plus. So that way we have been able to reduce cut expenses. So this led to a total of 52 billion yen better results, actually, improvement. Okay, thank you very much. So, moving on to the next person.

From NHK, Mr. Tsuboi, please. Yes, Tsuboi from NHK. Is it audible?

Yes, we can hear. Thank you.

Just listening to all the discussions and to presentations, once again, let me ask the following. Second quarter recovery, is that in line with your recovery, you know, like in China and United States, and there was the recovery of cells, was that part of your original expectation? And also, for your focus on the upward revision, fine but you know in the United States and Europe the number of positive cases is on rise once again I think you used the expression of being uncertain or opaque or whatnot so what sort of strategy would you deploy after all? Thank you. So the first question has to do with the second quarter recovery, whether or not it was part of our expectation or exceeding our expectations. So please let us respond to that first. Okay. So the first quarter, whether or not we were able to have the clear expectation or not. Well, frankly speaking, the actuals exceeded our expectation. China, that was the end of the first quarter, three-month period. It was getting better. But in the United States, we really could not see through the situation at all. So in that respect, I would say that what actually happened in the second quarter for our actual results exceeded our expectation. Now, the most recent raise in the number of positive in the patients of the coronavirus whether or not there is so much that is starting to affect our business operations negatively. Not so, I'd say. However, it is also true that some of the dealers, though temporarily shutting down their doors, they temporarily have the closure of their activities. This sort of means that they will work against our performance going forward. So we have to see what happens. We also would like to respond to your second question.

So that is reporter Yokoyama from Toyo Keizai. Can you hear me okay? Yes. Yes, thank you. As announced already, the production results for September, you're seeing higher results compared to the last year. Now that your production is coming back and the demand is recovering, and then the inventory situation in North America, do you still have a shortage in inventory or do you have enough in inventory? That's all the things I'd like to ask. Okay, thank you. Okay. For the September production results, so is your production ready and then is the demand coming back? And then the second question was the situation, inventory situation in North America. Thank you.

Okay.

If you look at the September, most recently for North America, we are back to 90% back to usual. On the other hand, there is some, depending on the model, the inventory level is short on some models. So we are making some additional production as well. The inventory is like 52 days worth of inventory.

And so currently...

we are at the standard inventory level to which we are finally coming back to. But depending on the level, sorry, the model, it varies, but we are almost back to a standard inventory level. Okay, thank you.

Okay, from Automotive News, Mr. Okamura, are you there?

Yes, I am. Okamura from Automotive News. I hope you can hear me. Yes, we can. Listening to you, Mr. Kurahishi, you talked about relationship with GM, saying that there's nothing further that you can explain to us today. But what sort of expected synergy for cost reductions further, per annum by how much further, or those cost benefits that can be diverted into investments in other areas? What sort of synergy would you expect altogether? And also North American market is very important for you. And there is an alliance with someone like GM. your power control or the authority, I wonder whether you would end up conceding your authority or the power to the GM is that ever a concern that you have in the North American market? Okay, again, thank you very much. We received a question relating to the relationship with GM. What would be the expectable synergy in the areas of cost reductions and and how that can be used in other areas. And also, because you have the alliance agreement with GM in the North American market, is there any possible concern the less power of influence or whatever that you may have? Okay, as to the cost reduction benefits, What I said was that, you know, we signed on to the memorandum and then what we are doing right now is that we are engaged in discussions as to the contents of the substance within the MOU memorandum. So I really cannot say anything more definitive. It is for sure that Honda certainly regards that there is going to be the understandable, acceptable benefits to accrue. But that's it. I cannot quote any number per se. By the way, any concern about the power of control, the influence or whatnot? You know, this is the business relationship, but not the capital injection. It is not capital participation. Rather, it is really on the basis of the real patients. So we know that what we are not interested in and engaged in in the North American market, we will not do after all. So in that context, I would say that because we are working more and more in the direction of electrification of cars, With the GM, many say it's a hybrid category of vehicles. We have the meeting of minds. We regard that we can come out and win the beneficiaries from this relationship. Certainly, we have any concern whatsoever that we have to concede on the power of control.

Thank you. Okay, going into the next question, next reporter. Mr. Mizutori from Daily Automotive News. Mrs. Mizutori from Nikkan Automotive Newspaper.

Yes, we can hear you.

Thank you. I have two questions. First question. It's concerning the domestic market. Earlier, you talked about for Europe and the U.S., you said the growth was better than your estimation. But I believe you upped your estimate by 10,000 units. So for the second quarter, was the domestic market better than expected? And then may I continue on to my second question? Yes. So for the R&D costs, so you said you reduced the full year estimate by 40 billion yen or so for R&D costs. Would that have an impact on product development? At the May, I believe Mr. Hachigo mentioned possibly launching level 3 by the end of the year. So if there's any impact, please let me know. Thank you. Thank you very much for the question. The first question was for Japan domestic market. So total demand and also Honda situation. That was the first question. And the second question is about the R&D cost. So for the full year, we reduced it by 40 billion yen. So would there be any impact from that? Thank you.

Okay.

Speaking about the Japanese market, Well, we are seeing a recovery from July to September, and then the most recent minivan sales is recovering. So compared to the 630,000 units, Now we are upped by 10,000 units to 640,000 units. So, of course, the market going forward is still uncertain. However, we would like to keep a close watch on this.

And then for R&D...

So because of the COVID situation, there is a bit of a delay in development of new models, but on the full-year plan, we are still on plan. This 40 billion yen reduction is triggered by the COVID-19. We have been doing the review of our operations across, including R&D as well. And then some of that timing of development might have been a little bit delayed. So this spans across automobile, motorcycles, and power equipment. So we are for any future plans, future activities for the seeding for the future, we will still be continuing for the investment for future technology.

Okay. I am sorry, but I have to say that the next question is going to be the final question from the Kyoto. Mr. Higashimoto, please.

Sorry. Ms.

Higashimoto. Thank you very much. This is Higashimoto from Kyoto.

Can you hear me? Yes. About his presidential election. Just an added question.

You said that it is premature to say anything about the future in the U.S. The official results are not out yet. However, You know, the past four years under President Donald J. Trump, how would you summarize that four-year period? There was a tax cut. So for companies who have been really focusing on the U.S. market, there must have been benefits that you enjoyed. So what is your review of the past four years under President Trump in the United States? Okay, the review of the past four years under President Trump. You know, I don't think it is totally appropriate or we are in the position of answering that big question in the name of one government. private sector company. And this I would have to refrain from saying anything. Thank you very much. So, ladies and gentlemen, because of the time. availability we were not able to probably take all the questions that you may have otherwise so if you have anything further please address those to corporate communication and with that we would like to close today's time together with you and the presentation materials please take a look at the words uploaded and our webpage thank you very much for your attention and participation the forum is now closed