Inpex Corporation (1605) Earnings Call Transcript & Summary

Hello, everyone. I am Takayuki Ueda, President and CEO of Inpex Corporation. Thank you for attending our investor meeting despite your busy schedules. I will begin by giving you a report regarding our corporate activities for the year ended December 31, 2019. Starting with the highlight. Net production volume for the fiscal year ended December 31, 2019, reached record high 586,000 barrels of oil equivalent per day, increasing by approximately 51% in comparison to the last fiscal year, which was from April to December 2018, during which we produced 387,000 BOED. Details of our financial results will be explained by Mr. Murayama later in his part. However, I would like to inform you that we posted consolidated net sales of JPY 1 trillion and net income attributable to owners of parent of JPY 123.5 billion for the fiscal year. Regarding our forecast for the fiscal year ending December 2020, as you can see on the screen, we are guiding for net sales of JPY 1.204 trillion, and net income attributable to owners of parent of JPY 145 billion for the 12-month period. Our shareholder return policy is founded on stable dividend payment, the level which will be stepped up in stages in accordance with the growth of our financial results. In reflection of the strong outcome achieved for the fiscal year ended December 2019, we have decided to revise up our year-end dividend by JPY 3 per share from our most recent forecast of JPY 15 to JPY 18 per share in acknowledgment of the support extended by our shareholders. Accordingly, the full year dividend for the fiscal year ended December 31, 2019, will be JPY 30 per share, comprising JPY 12 per share of interim dividend and JPY 18 per share of year-end dividend. As for the fiscal year ending December 2020, we are expecting a continuance of stable production from the Ichthys LNG Project in Australia. Consequently, and although future outlook for oil prices remains increasingly uncertain due to various reasons, we are still anticipating our net income to increase year-on-year, nearing the level we described in our medium-term business plan based on Brent oil price assumption of $60 per barrel, an exchange rate of JPY 110 to $1. Accordingly, and in line with the shareholder return policy I mentioned earlier, we would like to give a start of the year dividend forecast of JPY 36 per share for the full year ending December 2020, comprising JPY 18 per share of interim dividend and JPY 18 per share of year-end dividend. This will mean 3 consecutive years of dividend increase. Next, please allow me to turn to the major projects. As for the Ichthys LNG Project, we began shipping products in October 2018, starting with condensate, followed by LNG and then LPG. We are now continuing to realize steady production. With regards to the Abadi LNG Project, we submitted a revised plan of development in June 2019, based on onshore LNG development scheme, assuming production of 9.5 million tons of LNG per year. The plan was subsequently approved by the Indonesian government in July, and we signed, amended and extended production sharing contract in October last year. As for the Abu Dhabi Oil Project, we are working to increase production capacities of the various Abu Dhabi offshore and onshore oil fields that we have participating interests in. This slide describes some of the key activities we conducted during the period from April to December 2019. I will elaborate on the main details in the next part of my presentation. First, allow me to update you on the Ichthys LNG Project. The average production volume from the Ichthys Project was approximately 340,000 barrels of oil equivalent per day between October and December 2019. During the period from January to December 2019, we shipped a total of 104 cargoes from Darwin. At the start of the fiscal year, we were expecting to ship an average of around 7 to 8 LNG cargoes per month for the 9-month fiscal year ending December 2019, from April to December. However, we actually shipped 84 LNG cargoes during the period, and we are continuing to maintain steady production presently. For the fiscal year ending December 2020, we are expecting to ship around 10 LNG cargoes per month on the assumption of plateau production. Regarding production wells, we have already drilled and completed preparation of 18 wells so far. We will continue to undertake additional drilling work during 2020, so that we can maintain total level of production over a long term. As for OpEx, the plateau production cost of Ichthys is expected to be in line with the company's current total production cost. In other words, the project is expected to have competitiveness, even when compared to our currently producing project. We undertook some maintenance work in May 2019, and we were able to complete the scheduled tasks safely and without any accidents. We intend to carry out some minor maintenance work from time to time in the future, but we are not scheduling to undertake any major maintenance work during the year ending December 2020. Next, I would like to talk about the Exploration Blocks in the vicinity of the Ichthys field. Inpex has so far proactively endeavored to acquire participating interests in blocks of this area and have been carrying out exploration in due consideration of the high potentiality of the areas surrounding the Ichthys field. Currently, we have participating interests in 20 Exploration Blocks in the vicinity of the Ichthys LNG Project, including the Ichthys field. As we have explained previously, we have so far found a number of gas structures in these exploration blocks, which include Crown, Lasseter, Mimia and Burnside. Moreover, we have been able to confirm that these gas structures spread across at least 11 of our exploration blocks. These discovered gas structures still need to be appraised, and hence, some time will be required before we are able to commercialize them. Having said that, we are scheduling to drill one exploration well in block WA-343-P and undertake 2D seismic data acquisition in blocks WA-533-P and WA-532-P during 2020. Through these efforts, we will continue to appraise the area surrounding the field. Because we intend to operate Ichthys over a long term, we anticipate there to be various synergies with the production of gas from the surrounding fields. This could be through the utilization and future expansion of existing facilities of the Ichthys LNG Project. Conducting these measures will enable us to expand our production capacity of LNG and other products. Accordingly, we will continue to study the potentials proactively. Next, I would like to explain about the Abadi LNG Project. Abadi LNG Project is a large-scale project that will produce approximately 9.5 million tons of LNG per year and up to some 35,000 barrels of condensate per day. The project will also supply gas locally via pipeline in accordance with the local gas demand. Based on the result of pre-FEED, or the conceptual design work that was completed in October 2018, we submitted a revised plan of development to the Indonesian government in June 2019 and subsequently received their approval in July. Together with the approval of the revised plan of development, the Indonesian government also approved our application for a 7-year additional time allocation and a 20-year extension to the production sharing contract. Accordingly, the term of the PSC has now been extended until 2055. In addition to the contract extension, the project also obtained 3 economic incentives from the government, which are: indirect tax exemption; investment credit; and enhanced profit split after tax. These have enabled the economics of the project to reach adequately strong level. We are now in the process of preparing for the FEED work with a view to commencing FEED promptly without delaying. As for the progress on other key overseas projects supporting our business, the Abu Dhabi Onshore Concession and Offshore Oil Fields as well as the Kashagan Oil Fields are continuing their stable production. As for the ACG Oil Field in Azerbaijan, we achieved a cumulative production volume of 500 million tons, approximately 3.7 billion barrels as of December 2019. Regarding Block 4 among the Abu Dhabi exploration blocks, the appraisal work and preparatory work for drilling are underway in order to start the drilling activities by end of this year. In the next slide, I would like to explain our natural gas business in Japan. The domestic sales volume of natural gas in the 9-month accounting period, from April to December -- ended December 2019 was around 1.51 billion cubic meter. The sales volume for the fiscal year ending December 2020 is expected to increase by 0.08 billion cubic meter to 2.23 billion cubic meter compared to the previous fiscal year January to December 2019, due to the wholesale to domestic city gas companies, increasing demand for the direct industrial customers and others. In order to achieve the target supply volume of 2.5 billion cubic meter at an early stage, we are putting our efforts to develop new demand in order to meet the diversifying needs of natural gas, including the entry into new energy service business as well as working to further expand the supply volume. In the Naoetsu LNG Terminal, which is the hub of domestic gas supply chain, we are continuing a stable and safe supply of gas since the completion of its facility in December 2013. In October 2018, the first LNG cargo from Ichthys LNG Project called at Naoetsu LNG Terminal, followed by the first call by Oceanic Breeze, carrying Ichthys cargo in February 2019, which cargo is jointly owned by our subsidiary in Kawasaki Kisen or K-Line. This was the beginning of regular cargo from the Ichthys LNG Project, strengthening further our company's LNG supply capability and making a big leap towards establishing a global gas value chain. As for the renewable energy business, the Indonesian Sarulla Geothermal Independent Power Producer, IPP, Project started commercial operations since May 2018 at total rated capacity of approximately 330 megawatts. Since last year, we are also continuing the environmental impact assessment for the construction of geothermal power plant in Oyasu District of Yuzawa City in Akita Prefecture. At the same time, we commenced procedures to enter a power system interconnection contract in order to supply power through the grid of general transmission and distribution companies. We are also expecting flow tests in 2020, and thus, the Geothermal Power Project in Oyasu District is making a steady progress. Regarding the development of CO2 utilization technology. We completed construction and began commissioning of methane synthesis or methanation test facility, along with NEDO and Hitachi Zosen at the Inpex-operated Koshijihara Plant in Niigata Prefecture, Japan as was announced in October 2019. With the target continuous operation by end of February 2020, we are reviewing and assessing technological challenges today as well as discussing ways to further increase the size and scale of this facility, including entry into the wind power generation business. We would like to continue strengthening our renewable energy businesses going forward. Let me now turn to the net production volume of the fiscal year ended December 2019. The net production was 586,000 BOED, up 199,000 BOED compared to the previous year. This was mainly driven by the ramp-up of the Ichthys Project, production start of Prelude Project and the acquisition of tight oil assets, namely the shale oil production development interests. As we are working to shift to gas, the ratio of oil versus gas production in our company today is around 60% oil versus 40% gas. However, we expect this ratio to be roughly 50-50 after the Abadi Project reaches full production. Let me now explain our production cost, proved and probable reserves and reserve indices. The production cost per barrel was $5.3 for the fiscal year ended December 2019, down $0.40 compared to the previous fiscal year ended March 2019. As for the reserve replacement ratio, or RRR. As of end of December 2019, with the continued impact from the interest extension and acquisition in Abu Dhabi, including Upper and Lower Zakum Oil Fields as well as the acquisition of tight oil assets, we are able to maintain a high level of RRR. The proved reserves as of end of December 2019 has increased compared to the end of the previous fiscal year. The probable reserves has dramatically increased, mainly due to Abadi LNG Project and others. I have explained the business activities so far. And in the fiscal year ended December 2019, the second year of the mid-term business plan, we have seen a steady progress in achieving the important milestone during the mid-term plan, including the extremely steady ramp-up of the Ichthys LNG Project, approval of revised POD, and signing of revised and extended PSC in the Abadi LNG Project, and the first LNG cargo of Prelude FLNG Project. Those important milestones were achieved steadily in December 2020. We will keep working to achieve the important milestones, including the continual stable operation of Ichthys and the preparation for the FEED work in Abadi LNG Project. In terms of net sales, we have shown the target of around JPY 1.3 trillion in the mid-term business plan ending December 2022. The actual net sales in the 9-month accounting period of the fiscal year ended December 2019 was JPY 1 trillion, and the forecast for December 2020 is JPY 1.204 trillion. Regarding the net income attributable to owners of parent, the target for fiscal year ending December 2022 is shown at around JPY 150 billion, while the actual in December 2019 in the 9 months was JPY 123.5 billion and the forecast for December 2020 is JPY 145 billion. We expect a steady growth, including the continuous stable production from the Ichthys LNG Project. The net production volume is targeted at 700,000 BOED in December 2022, as shown. While the actual was 586,000 BOED in December 2019 and the forecast for December 2020 is 608,000 BOED due to reasons, including the ramp-up of Prelude FLNG Project as well as the increase in production at Kashagan and Eagle Ford. The actual ROE in the 9-month accounting period ended December 2019 was 4.1%, which we expect to improve further in December 2020 due to the increase in net income. In terms of the growth investments and shareholder returns, we have shown a total JPY 1.7 trillion as the 5-year cumulative investment amount during the mid-term business plan. The actual was JPY 488.4 billion in March 2019 and JPY 243.2 billion in December 2019 while the forecast is JPY 301 billion in December 2020. The 3-year cumulative growth investment is expected to be JPY 1.0326 trillion. Regarding dividend. As explained earlier, the fiscal year 2019 or December 2019 will increase by JPY 3 from the latest forecast to JPY 30 per share. And the initial forecast in fiscal year 2020 is JPY 36 per share. With the start of the production and shipment from the Ichthys LNG Project as well as the following continued production and steady growth in performance, we have gradually strengthened the returns to our shareholders. Going forward, we would like to continue looking at business performance and conduct shareholder returns accordingly to meet the expectation of and support from our shareholders. Thank you very much.

I am Masahiro Murayama, and I'm responsible for the finance and accounting division. I'd like to explain the financial results for the fiscal year ended December 31, 2019. I would like to begin by explaining the change to our accounting period, just in case. As we have communicated in February 2019, we changed the accounting period for Inpex and consolidated subsidiaries, aligning the fiscal year-end at December of each year. Fiscal year ended December 31, 2019 was a transitionary year where the accounting period was for only 9-month covering the period from April 1, 2019 to December 31, 2019. As you can see in the upper table, fiscal year ended March 31, 2019, was for 12-month as shown in light blue. And fiscal year ended December 31, 2019, was for 9-month, as shown in dark blue. In order to enable comparison between the 9-month accounting period of fiscal year ended December 2019 and the 12-month accounting period of fiscal year-ended March 2019, we will refer to the adjusted actual figures for fiscal year ended March 2019, as shown in light blue in the middle table, where we adjusted fiscal year ended March 2019 into 9-month period. Also in order to enable comparison between the 12-month accounting period of fiscal year ending December 2020 and 9-month accounting period of fiscal year ended December 2019, we will refer to the adjusted actual figures for fiscal year ended December 2019, as shown in dark blue in the bottom table, where we adjusted fiscal year ended December 2019 into 12-month period. I will refer to these numbers as I explain the results of our financial performance. This slide outlines the highlights of financial results for the year. As for crude oil, Brent began the year at $69 per barrel and ended the fiscal year at $66 per barrel. As a consequence, the average Brent price for the period came to $64.27 per barrel, which was a decrease of 12.1% or $8.86 on an adjusted 9-month year-on-year basis. As for the exchange rate, the yen began the year at around JPY 111 to $1 and ended the fiscal year at JPY 109.55 to $1 based on the telegraphic transfer middle rate staying within quite a narrow range. As a consequence, the average exchange rate for the fiscal year came to JPY 108.66 to $1, which was a 2.2% or JPY 2.49 appreciation of the yen on an adjusted year-on-year basis. Based on these oil prices and exchange rates, Inpex posted net sales of JPY 1 trillion, an increase of 25%; operating income of JPY 498.6 billion, an increase of 20.5%; ordinary income of JPY 511 billion, an increase of 14.7%; and net income attributable to owners of parent of JPY 123.5 billion, an increase of 136.1% on an adjusted year-on-year basis. Profit contribution from the Ichthys LNG Project was around JPY 75 billion towards the JPY 123.5 billion. We recorded a significant increase in our net income mainly driven by profit contribution from the start-up of Ichthys production. Next, I would like to describe net sales in terms of crude oil and natural gas. Net sales of crude oil increased by JPY 88.8 billion or by 13.2% on an adjusted year-on-year basis and in the fiscal year at JPY 764 billion. Although unit prices fell due to lower crude oil prices, which has fallen by 12%, as I said earlier, a pickup in sales volume driven by the start-up of Ichthys production enabled us to book a 13.2% increase in net sales. Sales volume increased 25.6% on an adjusted year-on-year basis to 169.5 million barrels, mainly due to sales volume increasing in Asia and Oceanic region and the Middle East and Africa region. Average unit price of overseas production was $65.61 per barrel for crude oil. This was 8.3% or $5.95 lower than the adjusted actual of the previous fiscal year. The average exchange rate applied to net sales was JPY 108.88 to $1, which was 1.7% strengthening of the yen on an adjusted year-on-year basis. Net sales of natural gas increased by JPY 108.4 billion or by 97.2% on an adjusted year-on-year basis to end the fiscal year at JPY 219.9 billion. We recorded an increase of 97.2% due to pick up in unit prices as well as a significant increase in sales volume in the Asia and Oceania region, which resulted from the start-up of Ichthys production. Sales volume rose 118.6% on an adjusted year-on-year basis to 345.1 billion cubic feet, mainly due to sales volume increasing in the Asia and Oceania region. Average unit price of overseas production for natural gas was $4.45 per 1,000 cubic feet, increasing by $1.51 or by 51.4% in comparison to the adjusted actual of the previous fiscal year. Sales price of domestic gas was $53.27 per cubic meter, rising by 3.1% on an adjusted year-on-year basis. The average exchange rate applied to net sales saw a 1.1% strengthening of the yen on an adjusted year-on-year basis. Next, I would like to explain the details of the statement of income. Net sales of the fiscal year came to JPY 1 trillion, which was an increase of 25% or JPY 199.8 billion on an adjusted year-on-year basis. If you look at the details, an increase in sales volume had a positive impact of JPY 233.5 billion. Unit prices, negative impact of JPY 19.5 billion as a result of weaker oil prices; currency, negative impact of JPY 14.8 billion due to somewhat of a stronger yen; and others, positive impact of JPY 600 million. Cost of sales for the period increased by JPY 97.8 billion on an adjusted year-on-year basis to JPY 424.7 billion due mainly to increased costs associated with higher sales volume from the Ichthys project. As a result, gross profit for the fiscal year came to JPY 575.3 billion, an increase of JPY 101.9 billion or 21.5% on an adjusted year-on-year basis. Exploration expenses increased by JPY 11.9 billion to JPY 15.4 billion. And selling, general and administrative expenses rose by JPY 5 billion to JPY 61.2 billion for the fiscal year. As a consequence, operating income increased by JPY 84.9 billion or by 20.5% on an adjusted year-on-year basis to end the fiscal year at JPY 498.6 billion. Other income and other expenses decreased by JPY 19.5 billion, mainly as a result of the disappearance of compensation income and an increase in interest expenses. Reflecting these, ordinary income improved by JPY 65.4 billion or by 14.7% on an adjusted year-on-year basis to post JPY 511 billion for the fiscal year. Impairment losses fell by JPY 18.9 billion and income tax payable increased by JPY 21.9 billion due to higher earnings. Net income attributable to noncontrolling interests fell JPY 8.8 billion to JPY 1 billion for the fiscal year, generating positive impact to our net income. As a result, net income attributable to owners of parent for the fiscal year came to JPY 123.5 billion, significantly increasing by JPY 71.2 billion or by 136.1% on an adjusted year-on-year basis, mainly driven by profit contribution from the start-up of Ichthys production. The movement in net income that I've explained is shown as a step chart on this slide. Please take a look at it in your own time. Next, I would like to explain our consolidated balance sheet. Total assets at the end of the fiscal year came to JPY 4.8499 trillion, which was an increase of JPY 56.4 billion as a result of investment and other assets increasing, which is included in others. Incidentally, total assets of the Ichthys downstream JV, which is not included in the consolidated balance sheet, came to JPY 3.8504 trillion. As for liabilities, the total at the end of the fiscal year, including both current and long term, came to JPY 1.5528 trillion. Of this amount, short- and long-term loans decreased by JPY 23.4 billion year-on-year to JPY 1.1177 trillion due to repayments and yen appreciation. Although accumulated other comprehensive income decreasing by JPY 50.6 billion resulting from yen appreciation-based drop in translational adjustments, an increase in shareholders' equity of JPY 84.9 billion caused total net assets increased by JPY 39.5 billion. Accordingly, net assets per share came to JPY 2,082 increasing by JPY 23.48 per share. As a consequence, equity ratio at the end of the fiscal year stayed flat year-on-year at 62.7%. Furthermore, Inpex' total net loans, including net loans of the Ichthys downstream JV came to approximately JPY 2.3 trillion as at the end of December 2019. Next is the statement of cash flows. The net cash provided by operating activities and financing activities are used for our capital investment, debt repayment, dividend payout and others. The net cash provided by operating activities was JPY 274.7 billion, a large increase compared to the actual of JPY 238.5 billion in the previous fiscal year, which is a reference amount of 12-month accounting period. The net cash from investing activities was JPY 288.7 billion due to capital expenditure and long-term lending. This was a large drop as well compared to the previous fiscal year. Due to the increase in net cash provided by operating activities as well as the pick out of net cash from investing activities, the net cash of both the operating and investing activities are almost an equal level. The net cash provided by financing activities was JPY 48.6 billion due to debt repayment, dividend payout and others. That was all for the financial results for the fiscal year ended December 2019. Next is the consolidated financial forecast for the year ending December 2020. This fiscal year will be a 12-month accounting period from January to December 2020. However, since the previous fiscal year was 9-month accounting due to the change in accounting period, we have adjusted the actual of the previous fiscal year to 12 months. I would like to explain the year-on-year performance of net sales and others based on this adjustment. The assumption for average Brent oil price during the year is $60 per barrel and the assumption for average exchange rate is JPY 110 to U.S. dollar. Comparing with the adjusted figures in the previous fiscal year, the oil price is $4.16 or 6.5% lower while the yearly average exchange rate is JPY 0.97 or 0.9% depreciated compared to the previous fiscal year. Based on the assumption, as the slide shows, the forecast net sales is JPY 1.204 trillion, up JPY 32.8 billion versus the adjusted year-on-year; operating income is JPY 499 billion, down JPY 60.2 billion; ordinary income is JPY 536 billion, down JPY 48.6 billion; and the net income attributable to owners of parent is JPY 145 billion, down JPY 22.3 billion based on the oil price of $60 per barrel. Although, we expect a lower oil price of 6.5% versus adjusted year-on-year, we are seeing a steady progress in production from the Ichthys LNG Project as well as the ramp-up of Prelude FLNG Project and the increase in production volume in Eagle Ford, therefore, the forecast full year net sales is JPY 1.204 trillion, up JPY 32.8 billion or 2.8% versus adjusted year-on-year. However, due to the increase in net sales, we expect a rise in cost of sales and one-off costs in existing projects, leading to a drop in operating income forecast of JPY 60.2 billion or 10.8% to JPY 499 billion. The other income is expected to increase by JPY 11.5 billion or 45.3% due to the equity income from the Ichthys downstream operations. However, the ordinary income is expected to drop JPY 48.6 billion or 8.3% versus adjusted actual of the previous fiscal year to JPY 536 billion. As for the net income attributable to owners of parent, while there is absence of external ordinary losses booked in the previous fiscal year and the drop in tax payment, we have the absence of one-off increase in income from the noncontrolling shares, which we booked in the previous fiscal year. Therefore, we expect net income attributable to owners of parent of JPY 145 billion down JPY 22.3 billion or 13.3% versus the adjusted year-on-year. The forecast Ichthys contribution to the net income attributable to owners of parent is around JPY 105 billion, an increase of JPY 10 billion from the 12-month adjusted JPY 95 billion in the previous fiscal year. This forecast of more than JPY 100 billion is based on the oil price assumption of $60 per barrel, and it is mostly the expected income level during the plateau production, as mentioned from the past. As our President, Mr. Ueda, covered earlier, the year-end dividend for the fiscal year ended December 2019 is raised by JPY 3 per share due to the strong consolidated performance in the year on top of the JPY 3 increase announced in the first half, leading to a year-end dividend of JPY 18 per share. Adding the interim dividend of JPY 12, the annual dividend comes to JPY 30 per share. For the dividend in the fiscal year ending December 2020, we plan JPY 18 per ordinary share for both interim and year-end, thus, an annual dividend of JPY 36 per share. The payout ratio in December 2019 is 35.5% and the forecast payout ratio for December 2020 is 36.3%. Let me explain our sales and investment plan for the year ending December 2020, which is used as the base of our business forecast. The forecast sales volume of crude oil for December 2020 is 128.71 million barrels, up 6.39 million barrels or 5.2% versus adjusted year-on-year, while that of natural gas is 493.8 billion cubic feet, up 73.7 billion cubic feet or 17.5% versus adjusted year-on-year. The crude oil sales are expected to increase mainly due to the steady and continual production of Ichthys LNG Project, increase in production in Eagle Ford and ramp-up in Prelude FLNG Project. The natural gas sales is expected to increase due to Ichthys and the ramp-up of Prelude FLNG Project. As for the investment plan, the development expenditure and others are expected to drop due to the decline in investment for Ichthys LNG Project and the absence of acquisition cost of Eagle Ford booked in the previous fiscal year, leading to JPY 268 billion, down JPY 54.2 billion or 16.8% versus the adjusted year-on-year. Exploration expenses will increase mainly due to drilling activities around Ichthys to JPY 30 billion, up JPY 4 billion or 15.4% versus the adjusted year-on-year. This last slide covers the crude oil price and exchange rate sensitivity to our net income for this fiscal year ending December 2020. They are shown for your reference based on the financial situation as of the beginning of the fiscal year. The estimated impact from increase in oil price by $1 per barrel is positive JPY 6.5 billion as of the beginning of the fiscal year. Nevertheless, sales price is partially fixed at the beginning of each quarter. Therefore, we expect the figures to change to positive JPY 4.5 billion at the beginning of the second quarter to positive JPY 2.5 billion at the beginning of the third quarter and to positive JPY 1 billion at the beginning of the fourth quarter. Please refer to note 2 for the breakdown of oil price sensitivity by quarter. Regarding the exchange rate, JPY 1 depreciation to U.S. dollar is expected to lead to a positive JPY 2.2 billion. The ForEx sensitivity related to valuation gains or losses of assets and liabilities denominated in U.S. dollar is almost neutralized. That is all for my presentation. Thank you very much for your attention. [Statements in English on this transcript were spoken by an interpreter present on the live call.]