Now, in – the 2010 third quarter was a reflection from the recovery after the Lehman shock and it was a record third quarter result. In this fiscal year, environment is difficult. But since we have started to disclose consolidated results from 2001, this fiscal year’s 30 – third quarter was the second highest.The overall situation, vis-à-vis, the plan as already explained in previous time is that for Information and Telecommunication System as well as Automotive Systems and whether it be in parts or materials, we’re very strong, posting increase in revenues. On the other hand, the Power Systems, the Construction Machineries, as well as Electronics posted a decline in revenues against the plan. Revenue was at a 98% level. In terms of the operating income, we have been able to post a slight upside although there are variations amongst the segments. Now please refer to the page on the financial position. Total assets at the end of third quarter was ¥9.3572 billion, and this is an increase of ¥171.6 billion compared to the previous term. Interest bearing debt is ¥2.8 trillion increase of approximately ¥270 billion. Now in terms of Information & Telecommunication System as well as Projects and Power Systems, in the third quarter is typically such that the revenue tends to be slow and inventories increase. In Hitachi Construction Machinery, we have posted increase in inventory. In terms of materials for rare earth related business, the strategic inventory are held and there was an increase in inventory significantly leading to an increase in interest bearing debt. Now the stockholders equity ratio was 15.7%. D/E ratio was 1.14 times. Now let’s refer to the cash flow. What I’ve explained is also reflected here. Free cash flow was negative 75.5 million and our nine months ended December is 204.2 billion negative. We did not have a good situation here, but in the fourth quarter as already mentioned, the business divestiture and decrease in inventory and increase in revenue is expected. And therefore, we would like to achieve a positive free cash flow of ¥100 billion for the fiscal year, improve our financial position and to achieve the D/E ratio target in the midterm plan in the year – fiscal year 2012.
Next, I would like to move on to talk about the segment Information. I’m sorry that this is a very busy task. We have here the three months ended December 31 and nine months ended December 31. Let’s look at the financial side first. In terms of revenues, Information & Telecommunication Systems and Electronic Systems & Equipment, Construction Machinery, Automotive Systems and the Component Devices posted increase in revenue. And with respect to others, this also increased because of the acquisition of Sunpak by Hitachi Transport System.Now on the other hand the Power Systems and Social Infrastructure & Industrial Systems, Digital Media & Consumer Products and basically domestic business of Financial Services posted a decline in revenues. Similar trend is seen in operating income below. So let me explain by segment. First, Information & Telecommunication System, Japan is firm, thanks to strong service and base station demand this year. Overseas, as I’ve been mentioning, storage solution is strong, and therefore both revenue and operating income increased. Next is Power Systems. In Japan, new construction of Nuclear Power Generation System is postponed although Thermal Power Generation System enjoys recovery demand. Overseas, boiler material in Germany that we’ve been concerned has led to some schedule of delays and therefore revenue declined. Operating loss is ¥11.8 billion in third quarter due to lower overall sales and counter measures on boiler material in Germany. Read the rest of this transcript for free on seekingalpha.com