Alps Alpine Co Unsp/Adr

From now on, the Alps Alpine Co., Ltd. will hold a second half-term settlement meeting in March of 2026. Thank you very much for joining us today. The items I will explain in this meeting will be as follows. The speakers are Izumi, the president of the representative management, and Kodaira, the CEO and CFO of the representative management, the executive director. The content of the settlement is from Kodaira. As for the progress of the medium-term management plan 2027, I will explain it from Izumi.

Then, from Kodaira of CFO, I would like to report the settlement of the second half of March of 2026. This is Kodaira of COO CFO. First of all, this is a summary of the whole of the settlement. The results of the Kamiki have had a negative effect on the yen price of Kawase, In the previous year, sales increased at the same level as the previous year, and the sales value of the paper machine increased by the sales value of the Component Mobility business, and recorded the highest in the past. In terms of operating profits, sales increased mainly due to measures such as buying up to customers, and the improvement of change cost at the reduction of new products and abnormal costs, as well as the improvement of various fixed costs have increased. As for the plan announced on July 31st for the second half-year results, In addition to the increase in sales of the component sensor communication business, the mobility business has progressed more than expected in negotiations with customers on the improvement of change cost and tax impact. In addition, a part of the development cost has shifted to Shimo, which has led to a large increase in sales. The above is the final summary until the second half of March 20, 2026. According to the forecast for the second quarter, in addition to the increase in revenue in the paper currency, we have changed the cash rate of the Shimo currency from $1.140 to $145. In addition to reflecting this cash change, the sales are expected to follow almost as planned, and the influence of the customs tax is expected to be as light as the paper currency. I will explain the details later. Next, I would like to explain the results of the second half of March, 2026. The results of the first half of March, 2026 are as follows. The negative impact caused by the recession was 1.6 billion yen in sales. The operating profit was 4.2 billion yen, but it was the same as the previous year. The sales volume was 5.57 billion yen, plus 1.53 billion yen. The operating profit was 2.12 billion yen, plus 1 billion yen. The net profit was affected by the loss of 3 billion yen in the Kawase-Saso area. However, due to the loss of 5.5 billion yen due to the loss of 1.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to the loss of 5.5 billion yen due to Next, I would like to explain the increase in operating profit. The exchange rate is a minus of 4.2 billion yen due to the influence of the yen price. The sales price was a plus of 8.6 billion yen due to the increase in mobile market actuators and mobility business. The exchange rate has improved by 1.5 billion yen. As for the exchange rate, there are pluses and minuses in each segment, so I will explain the details later in each segment. As for the development cost, it was a plus of 2 billion yen due to the shift of the customer development plan mainly in the mobility business. In addition, I will explain the results and expectations of the development of this paper machine and the下機 and下機 later in the mobility business. The fixed cost was resolved by the loan-loss withdrawal fund for the transaction that occurred last year, 20 billion yen plus, and when it was in operation, it was a negative effect of 1 billion yen. As a result of the above, the overall operating profit was 2.12 billion yen, which increased by 1 billion yen in the previous year at the same time. Next, it will be a previous year same-year comparison of sales value and operating profit for each business. Component business increased revenue, sensor communication business decreased revenue, and mobility business increased revenue. I will explain the sales of each business and the results of the business profits at the next page. I will explain the component business. First of all, I will explain how to look at the data. The upper column shows the sales value of each market by market season, and the sales profit amount is represented by an elliptic graph. The lower column shows the cause analysis of the business profits. The left side is a comparison of the previous year and the same period, and the right side is a comparison of the pre-market season. The sales of Kamiki increased from 1,778 billion yen last year to 1,891 billion yen and 1,122 billion yen. Mainly, actuators for the mobile market and game equipment products for the private market have improved. The operating profit is 178 billion yen, plus 11 billion yen last year. Due to the high price of Kaose, it is 26 billion yen minus, but The increase in sales has led to an increase in sales. As mentioned earlier, in terms of variable cost, improvements have been seen in products for the private market, but the increase in sales of low-priced products with actuators has greatly affected and worsened. Compared to the previous market, the increase in sales of actuators has been the main reason, but the increase in sales of products for the private market has also led to an increase in sales. Next is the sensor communication business. The sales volume decreased from 4.34 billion yen to 4.21 billion yen last year to 1.3 billion yen. The operating profit was minus 2.9 billion yen, and in addition to the impact of the sales reduction due to the impact of sales reduction by the introduction of power inductor business and keyless products for the market, From the increase in development expenses for new products scheduled to be imported next year to the same period of the previous year, it has been reduced by the same period of the previous year. In comparison to the previous period, the increase in sales and the reduction in conversion costs, development costs, and fixed costs have been increased. Next, I would like to explain the mobility business. Compared to the previous year's increase, it has been increased by the year. The sales volume was 2645 billion yen, which increased from 2589 billion yen last year to 5.5 billion yen. As for the operating profit, there was a minus of the debt repayment, but in addition to the increase in sales, measures such as increasing sales to the private sector, reducing the cost of new products, and reviewing the portfolio have improved the exchange rate due to the reduction of non-profit products. In addition, we improved the fixed cost by eliminating the loan-loss interest rate that occurred last year, and the overall revenue has improved. Next, I will explain the development cost. At the top right of the slide, we have predicted the results of the development cost at the time of July 31 and at the current time. In the second half of this year, the development schedule was a little behind due to model changes from the customer's EV to HEV, and part of the development equipment that was supposed to be in shape in the second half of the year was moved to the first half of the year. In addition, the recovery of the development equipment was earlier than the initial plan, so the development equipment, which was 4.7 billion yen in the first half of the year, was greatly reduced to 3 billion yen in the second half of the year, and as a result, the revenue was at a level that exceeded expectations. Next, we will look at the balance sheet. In the previous quarter, the current budget was reduced due to the depreciation of the short-term loan money. In addition, the self-sufficiency ratio decreased by 0.5 points from the self-sufficiency実施 and the self-sufficiency of the self-sufficiency fund of 20 billion yen. It is now 55.4%. Next, I would like to explain the forecast for the long-term profits in March of 2026. This is a summary of the changes in the sales outlook for the plan announced on July 31. First, we have revised the premise of the exchange rate from the conventional $1.40 to 145 yen, and we are reflecting the increase in sales by the exchange rate. The component business has increased the demand for actuators in Kamiki, but Shimokini is expected to collapse as planned. In the sensor communication business, the sales of photo printers are increasing. In the mobility business, at the basic stage, due to the impact on the market by the U.S. government tax, and the inconspicuousness of the related business environment, it was expected that it would be higher than expected, but it is expected that it will be almost as planned, including the cost-benefit effect. In addition, in terms of the situation due to the export regulations from China, a semiconductor manufacturer in Europe, We recognize it as a risk, but at this stage, the impact of the numbers is in progress and does not reflect on the future forecast. I will explain about the future forecast for each business. First, for the plan announced on July 31, the sales of Shimoki are estimated at 4,693 billion yen, which is an increase of 173 billion yen. On the other hand, the operating profit is a forecast of 108 billion yen, which is 21 billion yen. これにより通期では売上高9750億円、 営業利益は前回予想から70億円増の320億円への増益を見込んでいます。 経常利益は前回予想から135億円増の360億円、 当期準利益は115億円増の170億円としています。 次にセグメント別の見通しです。 コンポーネント事業は当初の想定通り紙費から売上が減少し、 It is expected that sales profits will also decrease as a result. The sensor communication business is developing digital devices, which are new products, and the development cost will decrease, so we expect to see an increase in paper money. As I explained earlier, the mobility business is expected to be reduced by shifting to paper money as the development cost increases by shifting to paper money. The operating profit has been adjusted from 60 billion yen to 80 billion yen in the previous plan. The cost rate of Shimokyo has been changed from 140 yen to 145 yen. Finally, I would like to talk about the self-priced acquisition of 20 billion yen that was announced earlier. The acquisition was completed as planned, and today we announced its stock price drop. In addition, as per the schedule, we are planning to invest 30 billion yen in the second half of this year and 60 yen in the second half of this year. We will continue to improve profits and capital efficiency per share in the future.

I'm Izumi, the president. Today, I will explain the progress of the medium-term management plan 2027, which I have been promoting since 2025. Half a year has passed since the announcement of the medium-term management plan 2027. In the mobility industry, many customers have changed their vehicle plans from EVs to HEVs due to the influence of U.S. customs. The market has a strong sense of inconsistencies, and it was expected to slow down from the beginning, but in the latest forecast, it is expected to slow down from 2026 to 2027. On the other hand, the component business was originally a conservative forecast, but it is a forecast that the scale will continue from next year onwards. Although there is a gap in each segment, it is expected that the overall revenue can be maintained. The reorganization of non-profit businesses and structural reform are also in full swing, and the development and introduction of new products, which will be the key to profit improvement, is proceeding smoothly. Some of the strategic investments of 10 billion yen in the third quarter have already been implemented. There are also concrete plans for the future. As a result, the second half of the capital for growth businesses is in full swing. Today, I will explain about domestic productivity and competitiveness enhancement. The PBR of March of 2027, which is the previous company's goal, has improved to a level that is close to the target, with an increase in the entire stock market at its feet. We will continue to strive for further improvement by achieving a consistent achievement in the industry and improving capital efficiency. The ROE is a reaction of the Alps-Budryu-Baikeku Station, and this year it has temporarily decreased, but the policy to achieve 10% in March of 2028 will not change. We will work together to improve trust from the stock market and to achieve the immediate goal of the medium-term plan. In terms of strategic investment, we are focusing on cost-efficiency of domestic bases that have not been used for many years. We are moving to a low-energy base by focusing on one-base aggregation of mobility business, aggregation of component functions, improvement layout of automatic transportation response, and moving to low-energy bases. The plan is to promote commercialization and automation through the introduction of common platform facilities, and to improve production efficiency by about 50%. Based on this, we will continue to use technology at overseas bases to reduce costs. Among the 400 billion yen related to commercialization and optimization of production costs, 110 billion yen will be implemented this year. We plan to improve profits of more than 80 billion yen by the end of the 27th year alone in Japan, and will continue to produce more than 5 billion yen a year in the future. We believe that this project will encourage domestic production and lead to the response to the risk of intellectual property tax. Next is the progress of each segment. In the component business, customer demand for amusement and mobile markets has increased, and in the 26th year, Chinese-developed companies and the sales of new products for the company are high, and mobile phones are also expected to increase in demand. In addition, we are looking forward to increasing production costs and improving procurement, and we are looking forward to expanding in the 27th year. In the sensor communication business, the development cost has decreased for several years, and we are looking forward to normalization from the next year. Sensors and digital key new products will be launched, The lens for the data center is expected to grow by more than 10% in two consecutive years due to the global demand of mobile photo printers. In the 26th year, the sales profit has increased to a plus, and in the 27th year, it is expected to reach 5 billion yen. Since the 24th year of the mobility business, the number of MPs has been reduced by each market period. This year, the development cost and net revenue have been reduced to the annual budget, and we are proceeding with the cost reduction as planned. With the change in the vehicle planning of customers, the time to introduce development shifted, and the revenue shifted from Kamiki to Shimokie, but in the 26th year, we expect to secure a scale similar to the 25th year, and new products will be introduced, and the revenue will maintain the planned line. Currently, In the U.S., there is a decrease in dealership stock and an increase in orders, so we expect that the actual demand will exceed our expectations. In the 27th year, there is a possibility that sales will drop below our initial expectations, but we will reduce the non-profit product ratio from 8% to 3% and secure 5% of the operating profit with the addition of additional projects. In the medium-term business plan 2027, the introduction of high-quality products is a pillar of revenue improvement. The product portfolio will be launched in the sensor communication business and the mobility business, and it will become a future growth driver. In the component business, it is expected that passive devices for companies will expand globally smoothly. We will continue to maintain 50% of the share. In the U.S., we have added a safety feature for the damage detection, and in China, we have added a 48V solar panel. In addition, we are expanding our position sensors not only for cars, but also for robots, smart home appliances, and so on. In the sensor communication business, MiriHashi's new products have not only been launched for cars, but have also been launched in the fields of 3rd generation and 4th generation. The digital key is expected to achieve its original value, and it is expected to expand by horizontal expansion after the 27th year and increase revenue. In the mobility business, it is planned that new products related to cabins will rise all at once from the beginning of this year. There are some development plans, but the original value is possible and will be fully developed by the 27th year. By 2030, it will reach a scale of about 7 billion yen. This year is an important year in which we aim to transform our product portfolio and raise the value of high-quality products. We will make sure to focus on these in the medium-term management plan, and we will achieve business goals and improve corporate value.

That's all for today.

I'm Sato from Morgan Stanley. Thank you for your cooperation. There are three questions. The first point is about the camera actuator. What kind of changes have been made from level 1 to level 2? Please tell us about the relationship and share changes. Also, the peak is in the second quarter of the year, but how will it change after the third quarter due to the high demand for this year? I think it will be after the third quarter, but I would like to explain about the possibility of such a risk that large companies from overseas will enter.

That is the first point. I will explain about that in detail. Can you hear me? Yes, please. First of all, it's the 1st and 2nd class of the camera actuators. As I said at the beginning, the 2nd class actually came with more than expected numbers. This is the gray part of the bar graph. This came with a much higher number than the original plan. I'd like to change the subject a little bit, but I'd like to say that our products have been launched without any problems, mass-produced, and the demand from customers has been quite high, but we have increased the demand by doing so. In addition, the second point is that the 3Q and 4Q products As for this part, as usual, 3949 will decrease whether this situation will continue in the future, so this number is as planned in the beginning. This number is written as 1435 on July 31st, and this time it is 1511. In that sense, we are now stepping on it as planned in the beginning. First of all, the answer to the first point is here, but is it okay?

Excuse me, how do you think about the possibility of overseas exchanges coming in?

Yes, I will answer from Izumi because I am concerned about the medium-term management plan after next year, but I explained overseas exchanges earlier, but since the 26th and 27th years, this component business has been I think it will greatly increase our medium-term planning. However, this does not mean that it will be the end of the world, but that the specific products and items of the initial plan will be greatly exceeded. As I explained earlier, other than this, the number of passive devices has increased significantly, so it will be more stable. We will continue to increase the production capacity by the next year.

はいありがとうございます2点目がセンサーコミュニケーションのデジタルキーについてなんですけど 現時点では開発費がかさんでいるそんな状況だと推察しますけど売り上げがですねこう本格的に形状されて黒字転換する時期 Please explain what kind of impact it has on the entire sensor communication.

I will explain about that from Izumi. First of all, regarding the digital key, I wrote it on the page of the new product. As for this one, it will be launched in April of 2026, so it will be launched from the beginning of this year. Of course, as for this one, it will be launched from the beginning of this year, so it will be launched from the beginning of this year. This will increase the number of models that will be applied in the year 2027. First of all, the entire sensor communication will be converted to black in 2026. And in the place where it will be transferred in 2027, this digital key will be used in the place where 5 billion yen will be transferred.

はいありがとうございます最後3点目がモビリティの開発費についてなんですけども 9ページ名でですねあの The amount of capitalization is 1.2 billion yen this year. The amount of capitalization is 1.2 billion yen in 2023, 1.2 billion yen in 2024, and 1.2 billion yen this year. Please tell me about the background of the increase every year and the method of incineration.

I would like to talk about the development cost. As I mentioned earlier, it is true that the number of investors is increasing year by year. One of the reasons why it has increased is that, in the case of our company, it used to be a conventional self-made design model. In the past, the development cost after mass production development was controlled by the development cost. On the other hand, In recent years, the digital cabin relationship has increased rapidly, but the SDV part has increased with the development of so-called home-developed SIR models with large-scale and complex system design. This has led to the development cost before mass production. we will collect them directly and put them on the incinerator. This means that we will be able to collect them before they are mass produced. This means that we will be able to collect them before they are mass produced. This means that we will be able to collect them before they are mass produced.

How is incineration done?

Of course, incineration costs occur, but before mass production, the customer receives a temporary payment. After production, the model will be used for incineration, so it will be difficult for us to collect the product and use it for incineration.

What kind of incineration will be done after the product is mass-produced?

Of course, incineration costs occur. However, the cost of incineration is to collect from customers before mass production, and the cost of incineration is to mass-produce what is under the pool.

What should we think about the incineration period?

For example, when it comes to software, it is said that it will take 5 years for the court, so 5 years will occur, but the incineration cost for that 5 years is originally collected before mass production, so the amount of incineration costs that have already been collected before mass production is now increasing in the form of 5 years.

はいすいませんありがとうございます それだ高山様お願いいたします どうもありがとうございますえっと3つお願いします 最初にちょっと数字的なところなんですがあのこのヤマタカの増減要因っていうのがありますがこれ計画費っていう表現できますしか紙機の計画に対して実績どうだったか年間の The increase of 7 billion yen is the plan budget. Can you express this as an increase factor?

Yes, that is from Kodaira. Mr. Takayama's question is about the increase of 7 billion yen this time.

The change in the paper machine was originally 121, but now it's 212. The change in the paper machine was originally 121, but now it's 212. The change in the paper machine was originally 121, but now it's 212. The change in the paper machine was originally 121, but now it's 212. The change in the paper machine was originally 121, but now it's 212.

The change in the paper machine was originally 121, but now it's 212. First of all, the part of Kamiki that is much higher than expected is the development cost that we talked about so far. This is the part of the mobility business that is very different from Kamiki to Shimoki. Also, the part of Kamiki that has been recovered has increased by about 6 billion yen. Therefore, the development cost there has become a plus, so for the initial plan, In addition, the sales of the actuator itself has increased, and we are pushing the operating profit, including the actuator itself. In addition, the sales of the actuator itself has increased, and we are pushing the operating profit, including the actuator itself. In addition, the sales of the actuator itself has increased, including the operating profit, including the actuator itself. In addition, the sales of the actuator itself has increased, including the operating profit, including the actuator itself. In addition, the sales of the actuator itself has increased, including the operating profit, including the actuator itself. In addition, the sales of the actuator itself has increased, including the operating profit, including the actuator itself. In the case of shimoki, the part where the paper machine is misaligned is plus, so this is the mobility business of the developer at the right top of the page, but there is a part where the developer at the right top of the page increases the amount of construction. Based on that, it is minus compared to the original case, but in the case of shitsuki, it is 70 billion plus. I would like you to recognize that.

Excuse me, if you divide 700 million yen, I think there is also a part of the exchange rate in the year-round.

Yes, in the year-round, the exchange rate is 140 to 145 billion yen at the end of the year, so if you go to the sales profit at the exchange rate, I think that about 300 million yen will be a plus. Other than that, as I said earlier, The amount is increasing.

As for the development cost, is it just annual?

If it is annual, it will be a improvement of 1 billion yen. I would like you to take a look at the mobility part. At the top, it says 149,000 yen is the initial price. On the other hand, the result is 139,000 yen, so the development cost itself is 1 billion yen. The improvement is that it is the same, isn't it?

Yes, there is a part called 30.

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I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area, and I'm doing my best in that area,

It is said that the national and American smartphones are the best in the world, but it is recognized that there is a gap between the initial plan and the number. However, there may be elements that go up, but I can't say how much it is, so I write like this.

I see. Also, as for the automobile industry, compared to the beginning, I think it was a fairly careful number of measures, but that hasn't changed this time either, has it?

Yes. Regarding that, if we go to Kamiki, it was a plus for the one we saw at the consulate in the beginning, but as for us, there is still a tendency to change depending on the area. That's why I think it's important to look at it from a conservative point of view.

I see. So, the car is a part of the traditional way of thinking. I understand the smartphone part. Thank you very much. The second big thing is that I would like to ask Mr. Izumi. In the slide, it was the second half of the segment-specific revenue achievement plan. This time, we received the contents of the next phase and the second phase in quite detail. First of all, I think that compared to the previous mid-term, we have accumulated quite a lot in detail. I think that each of us is collecting and putting out what kind of effect will come out even if we put out this number, but how to manage these things, and if there is any difference in the forecast, how to correct it and recover it. I think that such management methods are quite different from those of the past. I think this is important in order to increase the execution, but for example, I would like you to tell us about the framework that has been implemented and how it has changed over the years.

First of all, from the point of view of the stock market, it is still difficult to confirm the profitability of this 26-27-year profit plan. We also have to show that we have to show that we have to show that we have to show that we have to show that we have to show that we have to show that we have to In the next year, the number of components will increase more than expected, and the mobility will decrease more than the basic plan. Of course, there will be changes there. We will look at it in detail and update it again. As I said earlier, our goal is to improve the profitability of the place where we achieve revenue. In addition, I will explain from Kodaira.

I would like to explain a little in detail. In today's situation, in fact, the story of LOIC is In fact, we have not included it, but in our medium-term plan, we are making a medium-term plan for back-cast for achieving PBR1 ROE 10% in the medium-term plan. In addition, the number of ROICs has not yet been released, including the hurdle rate, but we are promoting investment management in a state where the hurdle rate is set for each segment. In addition, we are working on the launch of new products based on that. It's not, you know, it's your company's not gonna come to take a couple of night, you know, some companies need kind of timing the rolling system. So the rolling system could be your day. No, no, no, no, no, no, no, no, no, no, no, no. I understand. Thank you very much. Thank you very much.

Thank you very much. I'd like to ask you a question about that. It's related to the improvement of the project, but I'd like to ask you a question about the improvement of the project. I'd like to ask you a question about the improvement of the project. I'd like to ask you a question about the improvement of the project. I'd like to ask you a question about the improvement of the project. I'd like to ask you a question about the improvement of the project. I'd like to ask you a question about the improvement of the project.

Yes, I would like to explain this question from Izumi. It is written that this achievement has already started production, so it is described as achievement in terms of achievement. Regarding the estimate, Even looking at the time of the start of the sale, it is almost confirmed. Preparations have already begun. As for us, we would like to say that we have achieved our goal, but we are still in the process of moving up. As for this part, we have almost no doubt about it. I wrote that it is a prediction, including the fact that it has not yet risen to reality.

As explained earlier, while rolling with a higher density than before, is being tracked and managed, so compared to before, the angle is getting higher.

Is that what you mean? Yes. First of all, it is very important to launch new products in the near future, up to April next year, so this small machine is important. For example, there is a digital key that has just been released, There is a plan for these products, of course. Based on that, the cost of building, ST, and material cost, we are checking them. Two years ago, we were in the process of reflecting on the rise of new products, and the management came in to see if we had achieved a plan. We are doing this. We are doing this, including the cabin domain controller, for the mobility business below. From the point of view of the president, Thank you very much.

It may be out of the topic, but there was a talk about the number limit due to the change in the plan from AV to HEV, but is there a risk that such a phenomenon will lead to a change in the outlook of the current cost achievement?

Yes, I will explain from Izumiku. As I said, it would be good if the amount of money is the same and the plan shifts, but if you look at the span of this 27 years, Yes, there is a decrease in the number of customers. Especially in the EV industry, there is a decrease in the number of customers. In that case, we are designing based on the number of customers. On the other hand, the number of customers is decreasing. Thank you very much.

So Akizuki-sama, please.

I'm Akizuki Onomura. Thank you. Is it okay?

Yes, I can hear you.

I'm sorry. I would like to ask you to explain page 18. Well, it was 5.25 billion next year. I think it means that the segment is changing the percentage of interest. It may be repeated again, but The range of mobility is 230 to 160, and I'm concerned that 7 billion is a little big, so please tell me the difference between that and that, and maybe it's a reverse, but the components are probably At first, I think it was assumed that the profits would decrease, but I think it's a part of the mobile market that has been replaced by the assumption that it will increase. What kind of changes have you seen that have increased the angle of increase? Please tell me about that.

Can you hear me? Yes, we can hear you. This graph shows the net profit of 2.3 billion yen for FY27. It shows the net profit of 2.3 billion yen for FY27. It shows the net profit of 2.3 billion yen for FY27. It's not the number of FY27, but the timing of FY26. It means to raise it to 160 and then raise it to 300. So it's not that 230 fell to 160. That's what you're trying to explain. It's the same for other businesses. It's written in the order of FY25, 26, and 27. So it's the progress according to the initial plan. It is explained that we are moving forward.

Then, the number of mobility that you are receiving now is all according to the plan?

That's right. According to the plan, we are moving forward with the progress towards the number of 300 in FY27 and 160 in FY26. In that sense, the progress is that the plan is moving forward without being crushed.

I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry,

What kind of changes do you see? I would like to answer the question about OEMs. There are good and bad things depending on the customer, and there are also different things depending on the region. I can't say it in one word. As for us, especially in this period, we tend to focus on the development phase. There are some parts that have been changed, but in fact, in this period, we are improving even more than we have never done before. In fact, it is an existing product where we are starting to do it steadily at about 2 billion and 3 billion yen, which is actually an increase in sales for customers. I wrote it in the script in the middle of doing that, but it's not that much based on the amount, but it's about withdrawing from the property. If we continue to sell, we will negotiate with our customers. The mobility business is actually progressing smoothly. Including such things, we are planning to launch new products in combination with the increase in sales to our customers. All of this will be included in the agreement. By doing so, we will definitely achieve 300. We are now progressing the mobility business.

I think this is also due to mobility, but I think it was pulled down this time, but I'm sorry, can you confirm it with a number?

The number is quite difficult, but originally, we called it a risk of 5 billion yen at a cost of 2.3 billion yen and 80% increase to the customer, but On the other hand, at this point, we are seeing about half of the business influence. So, from the 14th to today, the paper, and the quarter is also the 14th today. In fact, there is a part that has changed unexpectedly, so it is difficult to say this number, but in that sense, I would like you to recognize that it is about half.

Is this included in your new plan? Yes, it is included. I see.

I understand.

That's all. Mr. Kiyota, please.

Hello, can you hear me?

Yes, I can hear you.

Excuse me.

Please tell me a little more about the correction of the operating profit of the mobility business in Shimoki. If you look at page 13 of the document, you can see that Shimoki has been deducting 4.9 billion yen from its previous plan. If you look at the development cost of page 9 of the document, you can see that it has increased by 4.5 billion yen. I think this is enough to explain the situation. If you think about the fact that Shimoki did not change the premise of automobiles, and that it was cheaper than the previous assumption, In addition to the increase in research and development costs, I had the impression that the profits would increase, but this time, in addition to the impact of development costs, can you tell us a little more about the background of the fact that the previous investment has been lowered?

Yes, I will also explain that from Kodaira. As for the development cost, it is about 4.1 billion yen in the part where it is off. In fact, the recovery of this area is also, originally, in the second level, the 99 billion yen was about 107 billion yen, 16 billion yen. In fact, there is a part of this area that has been coming down since the Shimo period. If you add all of them, it will be a number of about 6 billion yen. This is the part of the Shimo period, and the part of it is also shaped earlier, so that part is also part of it. Also, in the future, some of the risks that are actually being read are fixed costs. The fixed cost written at the bottom right here is actually a little higher in the first half of the year than in the first half of the year, but in fact, in the third quarter and the fourth quarter, if it becomes a calendar year from now on, if we go to the United States, we will have a Thank you very much.

I'm sorry to say this in detail, but I'm on the side of the 9-page development fee. This is the plan for July 31st of the upper stage, and the development cost of the下期開発費計過去PLのところが43億で、今回新しい計画で88億なので差し引くと45億開発費のところが費用が増加という見方をしていたんですけれども、先ほど60億増えているというのは、そこはちょっと理解できていなかったんですけれども。

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Thank you very much.