Financial Data and Key Metrics Changes - In the first six months of 2025, the company achieved 18% sales growth and 29% operating profit growth [7][44] - The gross margin decreased to 83.4% compared to 84.9% in 2024, primarily due to amortizations and depreciations related to Catalent [44] - Net profit increased by 22% and diluted earnings per share rose by 23% to DKK 12.49 [48] Business Line Data and Key Metrics Changes - U.S. Operations grew by 17%, while international operations grew by 19% in total sales [12] - GLP-1 diabetes sales in the U.S. increased by 9%, driven by Ozempic, while obesity care sales surged by 58% [12][19] - Rare disease sales increased by 15%, with U.S. operations growing by 23% [15] Market Data and Key Metrics Changes - Sales in international operations grew by 19%, with GLP-1 diabetes sales increasing by 10% [23] - Obesity care sales in international operations grew by 125%, with Wegovy sales alone reaching DKK 12.2 billion, growing at 335% [24] - The company remains the market leader in international operations with a 71% market share in GLP-1 products [25] Company Strategy and Development Direction - The company aims to expand its diabetes and obesity markets, targeting new patient groups and physician segments [31] - A focus on innovation and addressing diverse patient segments through a broad portfolio of treatments is emphasized [31] - The company plans to continue rolling out Wegovy in more countries and invest in commercial execution [26][31] Management's Comments on Operating Environment and Future Outlook - Management has lowered the full-year outlook for 2025 due to lower growth expectations for Wegovy and Ozempic in the U.S. [7][51] - The company is confident in its ability to treat more people living with chronic diseases despite the adjustments in expectations [56] - The management highlighted the importance of operational efficiency and commercial execution moving forward [60] Other Important Information - The company announced an interim dividend of DKK 3.75 per share, a 7% increase compared to August 2024 [49] - Capital expenditure for 2025 is expected to be around DKK 65 billion, reflecting expansion of the global supply chain [54] Q&A Session Summary Question: What is the impact of Wegovy's formulary position with CVS? - Management is pleased with the CVS formulary conversion and sees it aligning with expectations, but specific numbers on lives affected were not disclosed [67][68] Question: Has Novo initiated any litigation regarding compounding practices? - Management confirmed that protecting patient safety is a priority and that legal actions are being considered, with ongoing dialogue with the FDA [68][69] Question: What is the outlook for growth in China? - Management stated that the lower growth in China is due to destocking rather than loss of market share, and they are confident in future growth due to unmet needs [75][78] Question: What changes in R&D focus can be expected? - Management indicated a continued focus on diabetes and obesity, emphasizing execution and reallocating resources to areas of growth [81][83] Question: What is the rationale behind discontinuing development of Sulfiram for NASH? - The decision was based on a lack of differentiation from semaglutide in trials, which demonstrated strong efficacy [112][113]

Financial Data and Key Metrics Changes - The company reported revenue of €10.3 billion for H1 2025, an increase of 2.5% compared to the previous year [23] - Comparable volumes were marginally ahead, up 0.3%, despite challenges in Indonesia [23] - Operating profit increased by 7.2% to €1.4 billion, with an operating margin expansion of 60 basis points to 13.5% [25] - Comparable diluted earnings per share rose by 3.1% to €2, reflecting a higher effective tax rate of 26% [25] Business Line Data and Key Metrics Changes - The core NARTD category grew by more than 5% in the last twelve months, with significant contributions from Monster and other brands [7] - Operating profit growth of 7.2% was driven by strong top-line performance and efficiency programs [13] - The energy category, particularly Monster, saw volumes increase nearly 15%, with retail value share growing by around 140 basis points [16] Market Data and Key Metrics Changes - European markets returned to volume growth in Q2, supported by favorable weather and the Easter holiday [11] - The Philippines market performed well despite strong comparables from the previous year, with overall value share growing by 10 basis points [12] - Indonesia's weaker consumer backdrop impacted total first half volumes, contributing to a 1% decline in group volumes [11] Company Strategy and Development Direction - The company is focused on driving profitable revenue growth while maintaining affordability and relevance for consumers [13] - A multiyear view on promotional and pricing strategies is emphasized to create sustainable value [12] - The company is investing in technology and digital capabilities to enhance productivity and drive future growth [10] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed full-year profit and cash guidance, indicating a revenue growth range of 3% to 4% for the year [8] - The company remains optimistic about long-term opportunities in Indonesia despite current challenges [37] - Management highlighted the importance of digital transformation and technology investments to unlock value [39] Other Important Information - The company completed around €460 million in share buybacks and maintained a dividend payout policy of approximately 50% [6] - The return of the "Share a Coke" campaign was well received, contributing positively to brand performance [15] - The company is recognized for its sustainability efforts, retaining inclusion on CDP's A List for Climate for nine consecutive years [21] Q&A Session Summary Question: Guidance on top line and bottom line growth - Management indicated that despite a slight change in revenue guidance, they expect acceleration in the second half driven by volume growth and pricing strategies [45][46] Question: Performance in Europe and away from home growth - Management noted strong performance in Europe due to favorable weather and increased consumer engagement, with a focus on cooler placements and promotional activities [52][55] Question: Competitiveness in the market - Management acknowledged ongoing competition but emphasized a commitment to sustainable value creation and effective pricing strategies [68][71] Question: Metrics for the "Share a Coke" campaign - Management tracks metrics such as shelf distribution and consumption rates to evaluate the success of the campaign, which has positively impacted volume and price mix [75][76] Question: Acceleration in away from home growth - Management highlighted the return of consumers to public spaces and the impact of weather on away from home sales, indicating a positive trend for the remainder of the year [80][86] Question: Medium-term growth outlook considering Indonesia - Management reiterated that while Indonesia presents challenges, it is not critical to achieving midterm growth objectives, as other markets can offset weaknesses [90][93] Question: Update on COGS and hedging - Management reported being over 90% hedged for 2025 and around 60% for 2026, with expectations of flat commodity prices [96][97] Question: Update on Australian margin turnaround - Management expressed optimism about the Australian business's margin recovery, supported by structural changes and efficiency improvements [101][102]

Financial Data and Key Metrics Changes - In the second quarter, reported net revenues decreased by 0.8% to €747 million, with organic sales declining by 1.1% and volume also declining by 1% [25][26] - Adjusted EBITDA decreased by 7% year on year to €129 million, while adjusted EPS fell by 9% to €0.40 [30] - Adjusted gross margin contracted by 310 basis points year on year due to higher cost inflation, which more than offset productivity gains [28] Business Line Data and Key Metrics Changes - The chicken portfolio retail sales grew by 52% in the last quarter, with market share reaching 18%, a five percentage point increase from the previous year [14] - Retail sales in the frozen potato category rose by 21% year over year in the UK, gaining 180 basis points of market share [15] - Growth platforms saw net sales increase by 47% in the second quarter and 43% in the first half of the fiscal year [13] Market Data and Key Metrics Changes - Organic sales in the category posted high single-digit volume declines in key markets such as the UK, France, and Belgium due to unusually warm weather [26] - The frozen food category outpaced overall food volume sales by 60 basis points despite unfavorable weather conditions [11] - Weather-related headwinds negatively impacted frozen food sales by approximately 1% in France and 2% in the top five markets [7][9] Company Strategy and Development Direction - The company aims to return to organic sales growth in the second half of the fiscal year, assuming normalization of weather conditions [5][22] - Continued investment in advertising, merchandising, and innovation is expected to support long-term growth [12][19] - The company plans to launch new products targeting health-conscious consumers and enhance its portfolio with improved offerings [16][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 is proving to be a more challenging year due to external headwinds affecting the industry [4] - The company expects full-year organic sales to be flat to minus 2%, a revision from the previous expectation of flat to plus 2% [33] - Despite the challenges, management remains confident in the underlying health of the business and the potential for recovery in the second half of the year [36] Other Important Information - The company has returned substantial cash to shareholders, repurchasing €100 million of shares and paying out over €48 million in dividends, marking a 132% increase compared to the first half of last year [21][31] - The company is focused on controlling costs and enhancing profitability through various self-help actions [24][20] Q&A Session Summary Question: What are the expectations for organic sales growth in the second half of the year? - Management expects organic sales to return to growth in the second half, assuming normal weather conditions [22] Question: How is the company addressing the impact of weather on sales? - The company plans to adjust merchandising and consumer communication to emphasize products that perform better in warm weather [23] Question: What is the outlook for adjusted EBITDA and EPS for the full year? - Adjusted EBITDA is expected to decline by 3% to 7% year on year, with adjusted EPS guidance revised to €1.64 to €1.76 [35]

Financial Data and Key Metrics Changes - For Q2 2025, reported net revenues decreased by 0.8% to €747 million, with organic sales declining by 1.1% and volume also down by 1% [24][25] - Adjusted EBITDA decreased by 7% year on year to €129 million, while adjusted EPS fell by 9% to €0.40 [28][29] - Year-to-date free cash flow grew by 70% year on year, with a conversion ratio of 43% [29][30] Business Line Data and Key Metrics Changes - The company's growth platforms saw net sales increase by 47% in Q2 and 43% in the first half of the fiscal year [12] - Retail sales for the chicken portfolio grew by 52% in the last quarter, with market share reaching 18%, a five percentage point increase from the previous year [13] - Frozen potato retail sales in the UK rose by 21% year over year, gaining 180 basis points of market share [14] Market Data and Key Metrics Changes - Organic sales in the category were down by 1% in Q2, with high single-digit volume declines observed in key markets like the UK, France, and Belgium [25][26] - The unusually warm weather negatively impacted consumer behavior, contributing to a 1.5% negative impact on the full-year outlook [26][32] - The frozen food category has outpaced overall food industry growth by nearly one percentage point over the past decade [10] Company Strategy and Development Direction - The company plans to return to organic sales growth in the second half of the year, assuming normal weather conditions [31][35] - Continued investment in advertising, merchandising, and innovation is expected to support long-term growth [11][18] - The company is focused on enhancing profitability through cost savings and productivity improvements [19][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 is a challenging year, with external headwinds affecting performance [4][5] - Despite the setbacks, management remains optimistic about long-term growth opportunities in the frozen food category [10][20] - The company expects to recover cost increases through pricing actions, although most will not take effect until 2026 [27][32] Other Important Information - The company has returned substantial cash to shareholders, repurchasing €100 million of shares and paying out over €48 million in dividends, marking a 132% increase compared to the first half of last year [20][30] - A new advertising campaign is set to launch in the UK, coinciding with product innovations aimed at younger, health-conscious consumers [18][15] Q&A Session Summary Question: What are the expectations for organic sales growth in the second half of the year? - Management expects organic sales to return to growth in the second half, assuming normal weather conditions [31] Question: How is the company addressing the impact of weather on sales? - The company plans to adjust merchandising and consumer communication to emphasize products that perform better in warm weather [22] Question: What are the expectations for adjusted EBITDA and EPS for the full year? - Adjusted EBITDA is expected to decline by 3% to 7% year on year, with adjusted EPS projected in the range of €1.64 to €1.76 [34]

Financial Data and Key Metrics Changes - The consolidated net sales reached 552 million lei, representing a 29% increase compared to the first half of 2024 [13][15] - EBITDA increased by 74%, amounting to 47 million lei, with an EBITDA margin improvement of 2.2% compared to the same period last year [15][16] - The net result showed a profit of 3.4 million lei, a significant turnaround from a loss of 6.6 million lei in 2024 [15][17] Business Line Data and Key Metrics Changes - The installation and recycling segment contributed significantly to turnover, with a turnover of 402 million lei, up from 307 million lei in the same period of 2024, resulting in an operational profit of 25 million lei [18] - The compounds segment saw a modest turnover increase of 4%, but a substantial 244% increase in EBITDA, indicating stabilization [19] - The flexible packaging segment experienced a 51% turnover increase to 75 million lei, although it still reported a negative EBITDA of 1.5 million lei [20] Market Data and Key Metrics Changes - External sales nearly doubled from 100 million lei to close to 200 million lei, accounting for 35% of total turnover, driven by an 18% increase in volumes and new business contributions [7] - The infrastructure segment in Romania showed a growth of close to 40% in engineering works, while other construction segments did not perform as well [4][5] Company Strategy and Development Direction - The company aims to reduce dependency on the Romanian market and increase market share in Germany and Austria through dedicated sales structures and investments in personnel [5][7] - There is a strategic shift towards biodegradable packaging to meet market demands and improve profitability in the packaging segment [11][12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the contributions from recent acquisitions, particularly Aquatica Experience, expected to enhance financial performance by year-end [3][5] - The packaging segment remains challenging, with management actively working on operational improvements and staffing to achieve profitability [6][12] Other Important Information - The company faced a forex impact costing approximately 5 million lei but still managed to maintain a positive net result [9][17] - Working capital increased significantly due to higher inventory and receivables, leading to an increase in bank loans to 383 million lei [21][22] Q&A Session Summary - No questions were raised during the Q&A session, indicating a lack of immediate inquiries from participants [25]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 53% year-over-year, reaching $135 million, and adjusted EBITDA rose by 57% to $96 million [7][26] - Net income decreased to $6 million from $9 million in the same quarter last year, primarily due to a non-cash charge related to a foreign currency shareholder loan [7][28] - The company raised its full-year 2025 guidance, with revenues now expected between $528 million and $535 million, and adjusted EBITDA between $393 million and $400 million [7][30] Business Line Data and Key Metrics Changes - Revenue from electricity sales increased by 37% to $160 million, driven by newly operational projects [26][27] - New projects contributed $30 million to revenues from electricity sales, with significant contributions from projects in Israel and Europe [27][28] Market Data and Key Metrics Changes - Revenue distribution for the second quarter was 40% from Israel, 35% from Europe, and 25% from the U.S. [27] - The company is well-positioned in the U.S. market due to regulatory clarity and a supportive business environment, which is expected to drive accelerated growth [11][12] Company Strategy and Development Direction - The company aims for an annual revenue run rate of approximately $2 billion by 2028, which is about four times the expected revenue for 2025 [8] - The company is expanding its leadership team to support its growth strategy, with a new CEO set to take over in October [8][9] - The focus is on capitalizing on the growing demand for renewable energy, particularly in the U.S. and Europe, where energy storage opportunities are being pursued [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive market environment for renewable energy, driven by electrification trends and AI demand [10] - The company believes that project returns will remain attractive due to lower capital expenditures and higher power prices [11] - Management highlighted the importance of energy storage in Europe and Israel, where the company is expanding its projects significantly [13][14] Other Important Information - The company has secured $310 million in financing for the hybridization of the Hekama project in Spain, contributing to its expansion plans [29] - The company has raised $1.8 billion in project finance and $300 million from corporate debt and asset sales to support its growth strategy [29] Q&A Session Summary Question: Safe harbor and project completion timelines - Management confirmed that they have six gigawatts fully safe harbored, which accounts for the majority of their plans towards 2027, and they are well-positioned to accelerate projects if needed [35][36] Question: Supply chain and tariff impacts - Management stated that current projects will not be impacted by new tariff cases, and they have a diversified supply chain strategy to mitigate risks [40][41] Question: FX contributions to guidance - Management acknowledged that while FX has been a tailwind, the guidance increase is primarily due to strong operational performance [60] Question: Component costs and market adaptation - Management discussed that U.S. component costs are higher due to tariffs, but they expect gradual adaptation in the market [62] Question: ITC sales revenue contribution - Management clarified that the estimated tax benefit contribution has been adjusted to $70 million to $80 million for the year, slightly narrowing the previous range [67][68]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 53% year-over-year, reaching $135 million, and adjusted EBITDA rose by 57% to $96 million [6][24][28] - Net income decreased to $6 million from $9 million in the same quarter last year, primarily due to a foreign currency shareholder loan revaluation [6][26] - The company raised its full-year 2025 guidance, projecting revenues between $520 million and $535 million and adjusted EBITDA between $385 million and $400 million, reflecting a 5.5% to 6% increase [7][28] Business Line Data and Key Metrics Changes - Revenue from electricity sales grew by 37% to $160 million, driven by newly operational projects, contributing $30 million to revenues [24][25] - The company’s adjusted EBITDA growth was supported by $47 million from the same factors driving revenue increases, despite a $13 million rise in cost of sales linked to new projects [26][27] Market Data and Key Metrics Changes - Revenue distribution for the second quarter was 40% from Israel, 35% from Europe, and 25% from the U.S., indicating a diversified revenue base [25] - The company is well-positioned in the U.S. market due to regulatory clarity and a supportive business environment, which is expected to drive accelerated growth [10][12] Company Strategy and Development Direction - The company aims for an annual revenue run rate of approximately $2 billion by 2028, which is about four times the 2025 revenues [7] - The focus is on expanding energy storage projects in Europe and Israel, with significant planned storage capacity [12][13] - The company is also exploring opportunities in data centers, leveraging its renewable energy assets [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive market environment for renewable energy, driven by electrification trends and AI demand [9] - The company believes that lower capital expenditures and higher power prices will maintain attractive project returns [10] - Management highlighted the importance of adapting to regulatory changes and maintaining a diversified supply chain to mitigate risks [39][58] Other Important Information - The company has secured $310 million in financing for the hybridization of the Hekama project in Spain, enhancing its financial flexibility [27] - The leadership transition is set to occur in October, with the current CEO becoming Executive Chairman [7][20] Q&A Session Summary Question: Safe harbor and project completion timelines - Management confirmed that six gigawatts are fully safe harbored, positioning the company well to meet future criteria [33][36] Question: Supply chain and tariff impacts - The company has a diversified supply chain strategy and is not locked into any specific supplier, allowing flexibility in pricing [39][41] Question: Future project supply and PPA trends - Management indicated that the demand for electricity, particularly from data centers and AI, will drive future project development [50][52] Question: FX contributions to guidance - FX has positively impacted guidance, but strong operational performance is the primary driver of confidence in future results [56] Question: Component costs and market adaptation - The company expects U.S. component costs to gradually adapt, reflecting changes in tariffs and market conditions [58][59]

CCL Products (India) (CCL) Q1 2026 Earnings Call August 06, 2025 03:30 AM ET Speaker0Ladies and gentlemen, good day, and welcome to the CCL Products India Limited Q1 FY 'twenty six Earnings Conference Call hosted by Antics Stock Broking Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahavad ...

Financial Data and Key Metrics Changes - The operating profit for the fiscal first quarter was JPY 244.1 billion, a decrease of JPY 240.5 billion compared to the same period last year [2][4] - The full-year forecast for operating profit has been revised up to JPY 700 billion, an increase of JPY 200 billion from the previous forecast [2][4] - The net profit forecast for the year is JPY 420 billion, up by JPY 170 billion from the previous estimate [4][5] Business Line Data and Key Metrics Changes - Motorcycle operations achieved an operating profit of JPY 189 billion, an increase of JPY 11.3 billion year-on-year, driven by sales growth in South America [9] - The automobile segment reported an operating loss of JPY 29.6 billion, impacted by tariffs and nonrecurring expenses related to EVs [9][10] - Power Products segment saw a decline in sales, totaling 828,000 units, with growth primarily in Europe [6] Market Data and Key Metrics Changes - Unit sales for motorcycles reached 5.143 million, with significant growth in Brazil and Vietnam [6] - Automobile sales declined to 839,000 units, primarily due to decreases in China and other Asian markets [6] - The forecast for motorcycle unit sales remains at 21.3 million, while automobile sales are projected at 3.62 million [11] Company Strategy and Development Direction - The company aims to improve its earnings structure and expand profits despite ongoing uncertainties related to tariffs and policy changes [3] - There is a focus on localizing production in the U.S. to meet demand and mitigate tariff impacts [22] - The company is exploring collaborations with Nissan and Mitsubishi Motors to enhance business operations [62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the Chinese market, which has seen declining sales for 17 consecutive months, and emphasized the need for strategic adjustments [55][59] - The company remains cautious about the impact of tariffs and is actively monitoring the situation to adapt its strategies accordingly [20][64] - Future EV production timelines may be affected by recent losses and market conditions, with a focus on being prepared for the next fiscal term [80] Other Important Information - The company has acquired shares worth JPY 936.5 billion as part of its share buyback program [3] - The gross impact of tariffs has been revised to JPY 450 billion, reflecting ongoing assessments and adjustments [26][33] Q&A Session All Questions and Answers Question: Impact from tariffs and production strategy - Management confirmed that the reduction of tariffs from 25% to 15% is a positive development for the company, but uncertainties remain regarding future tariff applications [18][20] - The company plans to maintain a high local production ratio in the U.S. and may adjust production allocations to optimize operations [22] Question: Forecast assumptions regarding tariffs - The company has not significantly changed its assumptions regarding tariffs but is working closely with suppliers to understand the impacts [27][31] - The gross impact of tariffs has been adjusted based on detailed calculations, with expectations for a 15% tariff starting from September [33] Question: Sales decline in Asia and Europe - Management noted that competition from Chinese OEMs has intensified in Asian markets, affecting sales, and emphasized the need for hybrid model launches to regain market share [39][42] - In Europe, the company is reassessing its strategy due to historical production challenges and ongoing competitive pressures [42] Question: EV losses and pricing strategy - The company anticipates significant EV-related losses, with a total of JPY 250 billion expected for the fiscal year, impacting future production strategies [78][80] - Pricing strategies will be cautiously adjusted in response to market conditions and inflation trends, with ongoing monitoring of competitor pricing [66][69]

Financial Data and Key Metrics Changes - The operating profit for the fiscal first quarter was JPY 244.1 billion, a decrease of JPY 240.5 billion compared to the same period last year [3][5] - The full-year forecast for operating profit has been revised up to JPY 700 billion, an increase of JPY 200 billion from the previous forecast [3][5] - The net profit forecast for the year is JPY 420 billion, up by JPY 170 billion from the previous estimate [5][6] Business Line Data and Key Metrics Changes - Motorcycle operations achieved an operating profit of JPY 189 billion, an increase of JPY 11.3 billion year-on-year, driven by sales growth in South America [10] - The automobile segment reported an operating loss of JPY 29.6 billion, with sales impacted by declines in China and other Asian regions [10][11] - Power Products experienced a decline in North America and Asia, totaling 828,000 units sold, while Europe showed growth [7] Market Data and Key Metrics Changes - Unit sales for motorcycles reached 5.143 million, with significant growth in Brazil and other regions [7] - Automobile unit sales were 839,000, reflecting declines primarily in China and other Asian markets [7] - The forecast for motorcycle unit sales for the full year is maintained at 21.3 million, while automobile sales are projected at 3.62 million [12] Company Strategy and Development Direction - The company aims to improve its earnings structure and expand profits despite ongoing uncertainties related to tariffs and exchange rates [4] - There is a focus on localizing production in the U.S. to mitigate tariff impacts and enhance competitiveness [20][23] - The company plans to increase production capacity in Brazil to meet high demand, indicating a strategic emphasis on South American markets [57] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the Chinese market, which has seen declining sales for 17 consecutive months, and emphasized the need for strategic adjustments [59][61] - The company remains cautious about the impact of tariffs and is actively engaging with suppliers to manage costs [34][36] - Future EV production timelines may be affected by recent losses and market conditions, with a focus on preparing for a launch in the next fiscal year [84] Other Important Information - The company has initiated a share buyback program amounting to JPY 1.1 trillion, with JPY 936.5 billion worth of shares acquired as of July 31 [4] - The forecast for the full-year dividend remains unchanged at JPY 70 per share [6] Q&A Session Summary Question: Impact from tariffs and production strategy - Management confirmed that the reduction of tariffs from 25% to 15% is a positive development, but uncertainties remain regarding the implementation details [20][22] - The company plans to maintain a high local production ratio in the U.S. and may adjust production shifts to increase output [23][25] Question: Tariff assumptions for the fiscal year - The company has revised its gross impact from tariffs to JPY 450 billion, reflecting detailed calculations and adjustments [29][30] - Management is working closely with suppliers to understand the implications of tariffs on parts and components [34][35] Question: Sales decline in Asia and Europe - The decline in sales is attributed to increased competition from Chinese OEMs and varying government subsidies for hybrid vehicles [43][46] - Management is focusing on launching hybrid models in markets where they have not yet been introduced to regain competitiveness [44] Question: EV losses and future production - The company expects EV-related losses to total JPY 250 billion for the fiscal year, with ongoing assessments of production strategies [82][84] - Management is cautious about the timing of the Zero series EV launch due to market conditions and IRA impacts [84] Question: Price hikes and forecast assumptions - Price hikes are being considered cautiously, with management monitoring inflation trends and competitor pricing strategies [71][72] - The company remains conservative in its forecasts, particularly regarding exchange rates and tariff impacts [73][76]