Are the structural reforms items disclosed being implemented earlier than the items included in the Mid-Term Business Plan? Have items been added in response to the business environment or other factors?

We have not added new measures, but have determined the need to expedite structural reforms in anticipation of recovery beyond 2024. We had initially anticipated that expenses equivalent to the special losses additionally recorded this time would arise during the period of the Mid-Term Business Plan 2025.

To what extent are the effects of the accelerated implementation of the structural reforms expected to contribute to FY2024 results?

Although the numbers for FY2024 have not been announced at this time, we expect that the reduction in personnel and the winding down of Moscow office will contribute to the reduction of SGA expenses.

Please explain about the approach to improving the SGA expense ratio in FY2025, if sales exceed or fall below expectations. Is it correct to understand that achieving the announced SGA expense ratio of 42% is more important than the amount of SGA cost reduction?

Our basic approach is to commit to a 42% SGA ratio even if sales increase or decrease.

It is said that fixed costs will be reduced, but what image do you have of R&D expenses?

While continuing to invest in R&D, we plan to control fixed costs by increasing efficiency elsewhere. We believe it is very important to develop new products even during an economic downturn. 

Is Q3 operating income in line with your forecast?

Q3 is the period of lowest sales in each quarter, and the operating profit for this Q3 was also low. We expect sales to increase in Q4, which is the high quarter, and we also plan to control expenses.

What underlies your plan to increase operating income from Q3 to Q4 in a challenging business environment?

We expect the gross profit margin to improve in Q4 due to a lower component cost, which has been quite high, an improved sales mix and a decline in distribution costs. In addition, the control of SGA expenses has been effective over the quarters, and we believe this will contribute meaningfully to securing a profit in Q4.

What is the status of the market inventories held by dealers and others in the US?

The inventory situation has normalized.

The initiatives you have implemented have been successful, resulting in a significant increase in sales and earnings in Q3. Which businesses and regions contributed to this?

The Screening Business continued to perform well, and major optical chain stores in Europe were also solid. Sales in Asia, including China, were also strong.

What is the size of the Screening Business and the situation regionally?

The Screening Business is the largest of the Solutions businesses. It is 27% of the Eye Care Business. The largest market is North America, followed by Europe.