What is your assessment of the current gross margin?

The increase of the component costs, the markup, and the FX effects are among the factors that impact the gross margin, but it appears that the first two effects offset each other and the gross margin is improved by the FX effects.

Regarding the component shortages, while you are saying that it was severe in the first half of the fiscal year, the guidance figures have actually been revised upward. Can we assume that the second half is likely to be similar, or do we expect the second half to be even tougher?

Things won’t change. Although events that are more severe than expected may occur in the future, we will continue to work to achieve or exceed the plan, including efforts such as design changes.

What is the impact of foreign exchange on first-half sales?

In terms of first-half results, the approximate figure is about 10.0 billion yen.

What are the numbers in the new operating income breakdown for the full year?

We expect sales volume and product mix to be positive by 7.0-8.0 billion yen, fixed costs to be negative by 5.0-6.0 billion yen, FX effects and manufacturing cost reduction to be about 4.0 billion yen combined, and component and logistics costs to be negative by 3.0-4.0 billion yen.

Based on your new full year plan, you assume the operating income of Positioning Company will decline in 2H. Is it safe to assume that of the three segments, this is the one you view most conservatively?

You can look at it that way.

In Q2 alone, sales were unprecedentedly high, but how should we look at the second half of the fiscal year, including the impact of macro factors?

Based on the order situation, it is not bad. The housing sector is weak but the infrastructure sector is strong, so it does not look bad for the time being. On the other hand, global inflation, monetary tightening, geopolitical risks, component shortages and the impact of the zero-COVID policy in China have increased uncertainty. As such, we make the plan based on conservative assumptions.

What would sales growth have been without the impact of exchange rates and the price increases?

Excluding the effects of those factors, revenue was up by double digits.

Should we also pay attention to the risk of cancellations in a situation with heightened uncertainty?

Usually there are not many cancellations, but we have never had such a large backlog of orders in the past, so we can’t deny there is a risk of cancellations.

Looking at the next three years, what will be the technological advantage when it comes to the automation of construction and agricultural machinery? Is there the risk that major construction and agricultural equipment manufacturers will begin in-house production?

The robotization of construction and agricultural machinery is still at its dawn, and our company’s business can grow even if construction and agricultural machinery manufacturers move toward in-house production. In the long run, I think the major construction equipment manufacturers will eventually go in-house. But robotic construction machines need survey data to operate. They can’t take the whole market because they need surveying skills, including post-construction inspections. For agriculture, the hurdle for in-house production is lower because the precision required is relatively low. However, when considering smart agriculture, the measurement techniques that we excel at, such as sensing growing conditions, are required in many situations. I think our company is going to be in a position to collaborate with them.

Is there a risk of a slowdown optical chain stores’ capital spending if a recession occurs?

The current situation is good. The feeling that we get from them is not that the economy is slowing down.

You mentioned the NW500, but the current model, the NW400, is 8 years old. Can we expect renewal demand?

We expect it. The capabilities of the NW 500 are better, so I’m looking forward to additional demand as well.