What was the state of each country within emerging markets, which was the main cause of net sales for fiscal 2017 underperforming the target? What is your view for these markets in the forecasts for fiscal 2018?
As for Car Electronics sales for consumer markets in emerging countries, we were projecting a recovery from the second half of fiscal 2017, and Brazil and Russia were on a recovery trend, but going into 4Q, sales in Mexico and India fell short of our targets. For fiscal 2018, we expect increases from fiscal 2017, as we have already begun to see a recovery in countries such as Mexico and India, and sales of new cars are also growing in the ASEAN region.
What is the background to the significant improvement in the cost of sales ratio in fiscal 2018? How do you view changes for the consumer markets and for OEM?
In Car Electronics, we expect an improvement in the cost of sales ratio for both the consumer markets and OEM. For the consumer markets, in addition to a recovery in markets in emerging countries, we are also projecting a contribution from the introduction of new products with an improved cost of sales ratio such as car AV products for overseas markets and car navigation systems for Japanese market. The improvement for OEM is due to a decrease in depreciation and amortization. In addition, we expect an improvement in the Others business owing to the effect of business mix.
What is the balance of income between the first half of fiscal 2018 and the second half?
As for operating income, we expect it to be weighted more toward the second half than in previous years, owing to the timing of the introduction of new products in Car Electronics.
What progress has been made in the autonomous driving field?
The development of 3D-LiDAR sensor is progressing well. The increase in R&D expenses in fiscal 2018 is because we are bringing forward 3D-LiDAR development expenses, and this fall, we plan to develop a working sample and supply it to automakers. With regard to the collaboration with HERE, we are discussing specific themes following the business partnership announced in February, and plan to make an announcement as soon as confirmed.
What is the purpose of the “reversal of additional paid-in capital” announced that will be proposed at the General Meeting of Shareholders?
We consider the resumption of dividends is one of the most important management issues, and we have worked on securing funds for a dividend. Now, as preparation for the resumption of dividends, we have decided to submit a proposal on the “reversal of additional paid-in capital” to the General Meeting of Shareholders to be held in June 2017.