Financial Data and Key Metrics Changes - The operating profit for the third quarter was JPY 591.5 billion, achieving record high unit sales, operating profit, and operating margin [2][4] - Operating cash flow after R&D adjustment was JPY 1,855.8 billion, consistent with the same period last year [3] - The forecast for operating profit for the fiscal year ending March 2026 remains at JPY 550 billion, with profit for the year also unchanged at JPY 300 billion [3][5] Business Segment Data and Key Metrics Changes - Motorcycle operations achieved cumulative sales of 16.44 million units, driven by strong sales in India, Pakistan, and Brazil [7] - Automobile operations reported sales of 2.561 million units, reflecting a decline primarily due to semiconductor shortages [7] - The power products business sold 2.507 million units, with mixed results across regions [7] Market Data and Key Metrics Changes - The competitive environment for automobiles in Asia is expected to intensify, necessitating increased incentives [3] - The impact from tariffs was initially forecasted at JPY 450 billion but has been revised down to JPY 310 billion [3][5] - The exchange rate against the U.S. dollar is assumed at 140 JPY for the full-year period, with potential upside from yen depreciation [5][12] Company Strategy and Development Direction - The company aims to build flexible business characteristics to adapt to changing environments and enhance product features and cost competitiveness [15][16] - A fundamental review of strategies is underway to rebuild competitive strength in light of stagnated EV market growth and intensified competition from emerging OEMs [14][15] - The company is focusing on launching next-generation hybrid systems and enhancing the earning capability of hybrid models [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as stagnated EV market growth, less stringent environmental regulations, and heightened supply chain risks [14] - The company is maintaining its forecast despite uncertainties in the business environment, indicating cautious optimism for the fourth quarter [3][28] - Management emphasized the need for disciplined expenditure control and a review of capital expenditure plans aligned with market conditions [15][28] Other Important Information - The board of directors approved the cancellation of 747 million treasury stocks [6] - The company has adopted a DOE indicator to ensure stable returns and dividends aligned with growth, even in volatile environments [16] Q&A Session All Questions and Answers Question: Full year outlook and automobile profitability - Management indicated that while expenses are expected to increase in the fourth quarter, the overall outlook remains unchanged, with a focus on managing BEV-related costs and incentives [21][25][28] Question: EV market trends and strategy - Management acknowledged the need to revisit EV strategies due to negative demand environments and competition from local manufacturers in China [31][33] Question: Tariff impact and sales situation - Management explained that tariff impacts have decreased from initial forecasts, with recovery plans in place to mitigate costs [43][45][46] Question: Rare earth metals supply concerns - Management confirmed reliance on China for rare earth metals and emphasized the need for timely export applications and inventory management [50][52] Question: Collaboration with other companies - Management stated that while discussions with Nissan continue, they are open to exploring collaborations with other companies to reduce development costs [56][62]