Q1: Can you tell us about base revenue and expenditures in the financial results for the first half, excluding temporary factors, and the results of price revisions?
A1: Even excluding temporary factors, the results exceeded forecasts from the start of the year, thanks to stronger than expected export/import container handling and volumes of grain. The effect of price negotiations was about 1.5 billion yen on an operating revenue basis. This was also slightly higher than initially expected.
Q2: It looks like investments are proceeding at a significantly higher pace than assumed in the five-year investment plans of the Medium-Term Management Plan. Are things going better than expected? If so, is it possible that total investments over the five years will increase further?
A2: Our investments are proceeding smoothly to date. We believe this may be due to the effects of the changes in internal evaluation methods and awareness reforms implemented ahead of the formulation of the new Medium-Term Management Plan. We believe investments right now remain within the range of investment plans specified in the Medium-Term Management Plan.
Q3: Port logistics was one of the 17 strategic growth fields identified the other day by the Takaichi administration. Will this affect Kamigumi?
A3: What specific policies will actually be formulated remains unclear. Still, we believe the focus on ports, through which 99% of trade cargo passes, is significant. We have high expectations for future policies.
Q4: Above and beyond macroeconomic factors, what explains the growth in container handling volumes? A4: Relevant factors include the increase in shipping volumes by our customers compared to last year's volumes and the start of container handling at certain ports.
Q5: The investments specified on p. 14 include adopting networked power storage facility equipment. What plans do you have with regard to matters like the scale and timespan of investments in the power storage market?
A5: We plan to focus on the power storage market. We're currently planning several projects, starting with a site adjacent to the mega-solar facility we currently operate in Kasai, Hyogo Prefecture. Given the significant initial investment, they will be long-term projects, and we plan to assess profitability and explore the use of applicable subsidies.
Q6: The yen has depreciated sharply recently. Will this affect your Medium-Term Management Plan?
A6: While a weak yen has positive effects on exports, in light of factors like industrial structural changes, we can't expect large-scale growth in exports. The weak yen may pose downside risks for import cargo, due to
rising costs, although we don't envision any sudden declines in the raw materials cargo we handle. In short, we don't expect the state of the yen to pose any major obstacles to our plans at this point.