Tag: Japan

  • Nissan’s ePower tech coming to U.S. vehicle

    Nissan’s ePower tech coming to U.S. vehicle

    Startled by enthusiastic consumer demand for ePower in Japan last year, Nissan Motor Co. now plans to introduce the electric motor-powered technology to its vehicles in the U.S.

    But unlike its Japanese application in the humble subcompact Note, Nissan will more likely use ePower here as an option on higher-end vehicles, said Philippe Klein, the automaker’s chief planning officer said last week.

    Klein did not say which Nissan brand products might receive ePower but suggested it will begin with higher-priced nameplates that can absorb the added cost of the powertrain.

    Meanwhile, Klein’s boss, Nissan CEO Hiroto Saikawa said that Infiniti will begin offering ePower in the near future. Saikawa said ePower will play a key role in Infiniti’s move to almost completely electrify its lineup starting in 2021.

    The technology, essentially a range extender, appears on the Note in Japan.

    Saikawa said that every Infiniti that appears in or after 2021 will either be a full electric vehicle or have an ePower powertrain.

    The technology reached the market in Japan as a powertrain option on the Note in late 2016. But in 2017, its first full year of availability, it had a 65 percent take rate on the car, Klein said.

    “Our strategy is to expand to other vehicles and to other markets,” Klein said. “It’s not only for small vehicles. We’re going to go to bigger vehicles.”

    The system is essentially a range extender in which an electric motor propels the vehicle at all times. A battery provides the power for the motor. A gasoline engine is used to charge the battery when necessary.

    The system delivers a fuel economy rating of about 77 mpg under Japan’s testing protocol, which is not comparable to U.S. testing methods.

    But Klein said fuel economy is only half the attraction to consumers. A second appeal is the powertrain’s exhilarating acceleration, he said, which is something that will appeal to buyers of any vehicle.

    “One part of it is the rational — lower gas costs. The other issue is emotional,” he said. “The driving experience is very close to that of an electric vehicle. Contrary to a conventional hybrid, you have the smooth acceleration of an electric vehicle.”

    Klein said that ePower has helped Nissan increase the revenue generated by the Note, and also has allowed Nissan to reposition the Note in Japan as a more upscale model.

    He added that Nissan believes the technology also provides an alternative to diesel powertrains in Europe.

    The company is considering offering ePower there as regulations make it harder to sell diesel vehicles.

    Its immediate benefit as a new source of fuel economy is not so clear for the U.S. market, he said. “But the benefits of being emotional and fun to drive might apply in the U.S. for some categories of vehicles,” he said. “So it’s part of the strategy.”

  • Uniqlo to expand to Sweden

    Uniqlo to expand to Sweden

    Japan’s Fast Retailing plans to launch its Uniqlo clothing brand in Sweden with an initial store in Stockholm this year.

    Taking on its rival H&M in its home market, it marks the cut-price brand’s debut in the Nordic region.

    Uniqlo has fewer than 70 stores in all of Europe, and Fast Retailing CEO Tadashi Yanai says he wants to overtake H&M and Zara parent Inditex of Spain as the world’s top apparel retailer.

  • Wakanui Grill Dining to open at Marina One

    Wakanui Grill Dining to open at Marina One

    New Zealand-themed restaurant Wakanui Grill Dining has opened its third international outlet – an 86-seat restaurant in a glass capsule on the fourth level of Marina One.

    Singapore is the second territory for Wakanui following the concept’s launch in Tokyo by ANZCO Foods Japan in 2011 (it now has two restaurants there). Its feature dishes are New Zealand Ocean Beef and Wakanui Spring Lamb, both grilled over Japanese Binchotan charcoal in a central open kitchen.

    Starters included clam soup, steamed green-lip New Zealand mussels, hot-smoked salmon, Kikorangi blue-cheese Caesar salad and Wakanui spring lamb chop. The company raises its lambs for about six months on lush pastures, with the mean being aged for around four weeks.

    Other menu features include the Ito Wagyu Chef Creation, plus – a favourite with New Zealanders – Hokey Pokey ice cream with its crunchy confectionery pieces.

    “Wakanui”, which is Maori for big canoe, is a rural centre in Canterbury, in New Zealand’s South Island.

  • Nissan’s Infiniti vehicles to go electric

    Nissan’s Infiniti vehicles to go electric

    Japanese carmaker Nissan Motor Co. plans to transform its upscale Infiniti brand of vehicles into a primarily electrified offering, Chief Executive Hiroto Saikawa said on Tuesday.

    All new Infiniti models launched from 2021 will be either electric or so-called “e-Power” hybrids, Saikawa told the Automotive News World Congress in Detroit.

    The announcement revives plans for a luxury electric offering that Nissan first touted with a 2012 Infiniti show car, but later scrapped over profitability concerns. That left the road clear for Tesla’s (TSLA.O) Model S, introduced the same year.

    “We are going to make Infiniti the premium and highly electrified brand,” Saikawa said on Tuesday.

    Nissan and alliance partner Renault (RENA.PA) took an early lead in battery-powered cars with models such as the 2011 Leaf, still the world’s top-selling electric vehicle.

    However, Tesla has hogged the limelight in recent years, while German carmakers are leading a $90 billion wave of investment in electric and plug-in hybrid cars.

    Nissan dropped the earlier electric Infiniti program in mid-2014 over concerns it would threaten the financial goals in its “Power 88” mid-term plan, according to people involved in those discussions. The company ended up missing its 8 percent margin target anyway, in fiscal 2017.

    Nissan is one of a number of Japanese carmakers seeking to jump-start a higher-end brand. Toyota (7203.T) is launching a revamped Lexus LS flagship, while Honda (7267.T) has been redesigning its Acura line in the hope of boosting sales.

    In the United States, Infiniti’s sales rose 11.3 percent last year in a light vehicle market that was down 1.5 percent overall, while Acura deliveries fell by 3.9 percent and Lexus by 7.6 percent.

  • Japan sees investors flock to AI, big data funds

    Japan sees investors flock to AI, big data funds

    Funds that are oriented towards artificial intelligence (AI) and big data are attracting Japanese investors, according to the latest data compiled by QUICK Asset Management Research Center. This happens as popular monthly-distribution trusts are registering a net outflow of funds.

    The latest data on fund flows for investment trust management companies shows that individual investors are being lured to trusts that focus on AI and other cutting-edge technologies.

    Daiwa Asset Management, for example, registered a net inflow of JPY 370.1 billion in 2017, the largest among investment trust management companies. A fund for investment in robotics-related stocks, introduced by Daiwa at the end of 2015, continues to lure investors. Goldman Sachs Asset Management also recorded strong sales of a fund for global stock investments utilizing big data.

    Let’s recall that the latest Monex Global Retail Investor Survey conducted from November 27 to December 1, 2017, shows that “Technology” ranked at the top of the most attractive sectors among retail investors in Japan, U.S. and China (Hong Kong). There was no major change in the other sectors. However, while “Finance” was ranked high by retail investors in U.S and China (Hong Kong), “Banks” ranked low in Japan, and a difference in bias was apparent.

    This is in line with the results from the preceding investor survey, which also showed that technology was the most attractive sector for investors in all three regions covered by the survey. Monex explained back then that this interest is largely fueled by almost daily media coverage about advancements in AI and that expectations of technology companies among retail investors are extremely high.

    There has been, indeed, a plethora of news regarding investment into AI, especially in Japan. In November 2017, Xenodata Lab, a Tokyo-based firm that leverages the power of artificial intelligence to provide finance data analytics products to financial services companies, announced that it had secured JPY 250 million in funding from Japanese financial majors, such as Mitsubishi UFJ Financial Group Inc, SMBC, Mizuho, and Okasan Securities.

    And in December last year, Mitsui & Co Ltd (TYO:8031) announced an investment into Preferred Networks, Inc (PFN), a company that specializes in AI technology development and provision, with the focus being on deep learning.

  • Korea’s Caffe Bene sees the end

    Korea’s Caffe Bene sees the end

    Korean coffee chain Caffe Bene has collapsed, filing for a court-led restructuring scheme on Friday.

    Yonhap news service reports the court will soon decide whether to put the ailing coffee chain under its receivership or commence liquidation.

    The legal move follows a protracted slump and mounting losses, the company said. In 2016, the company lost about US$32 million on sales of $73 million, down 32 per cent on the previous year. At that time it operated 800 stores in Korea, a figure it said would shrink as it restructured, and about 50 in the US.

    Launched in 2008, Caffe Bene expanded to become one of South Korea’s largest coffee franchises, opening more than 1000 stores in five years, but lost ground in the saturated coffee market. While its US website claims it has opened 1600 stores worldwide, the exact number still trading is difficult to ascertain. It has opened in Vietnam, the US, China, Canada, Brunei, Singapore, Japan, Indonesia, the Philippines, Saudi Arabia, Malaysia, Cambodia and Mongolia.

    But the international foray has met with mixed success. The Cambodian store has already closed and the last Facebook post by the Singapore cafe is dated February last year. In Vietnam several stores have opened and closed, including its downtown flagship which drew huge queues when it opened in 2014. Three outlets remain trading there, but it is not clear if they are franchised or company-owned.

    The company also appears to have exited the Canadian market.

    While rapid growth in the consumption of brewed coffee drove up the Korean coffee industry’s overall expansion, Caffe Bene was unable to match the growth rate at home.

  • Asia boosts Fast Retailing sales and profit

    Asia boosts Fast Retailing sales and profit

    Uniqlo parent Fast Retailing has reported a record first quarter profit as international sales eclipsed its domestic revenue for the first time.

    While Fast Retailing sales in Japan rose 8 per cent to 257 billion yen (US$2.31 billion) for the first quarter ended November, overseas sales surged 31 per cent to 258.2 billion yen.

    “Southeast Asia & Oceania contributed to the rise in Uniqlo international revenue thanks to strong sales of summer items designed for year-round hot weather and buoyant demand for winter items from overseas travelers,” the company said in a statement.

    In China, Uniqlo is closing in on its target of 1000 stores by 2021 by venturing into second- and third-tier cities, surpassing 600 at the end of last year. India is the next major market on its radar.

    As for the home market, Fast Retailing CFO Takeshi Okazaki said while the economy was improving, “we cannot be optimistic that demand is returning to the apparel sector”.

    “We aim to make Japan one country in a global business,” he said during an earnings briefing.

    Operating profit for the quarter rose 28.6 per cent to US$1 billion in the quarter.

  • Richemont asia pacific rocket sales

    Richemont asia pacific rocket sales

    Asia Pacific has continued double-digit growth for heritage brand owner Richemont for its third quarter to the end of December.

    Total sales in the quarter increased by 7 per cent at constant exchange rates and by 1 per cent at actual rates over the same period a year earlier.

    Retail sales were mainly driven by the group’s jewellery maisons and specialist watchmakers, especially in Asia Pacific, where growth was led by Mainland China, Korea, Hong Kong and Macau.

    A rise in sales in Japan was supported by strong growth from the watchmakers and a favourable currency environment, says Richemont. Sales there reached €294 million (US$354 million), up 5 per cent at constant exchange rates but down 6 per cent at actual rates.

    Asia Pacific quarterly sales were €1.18 billion, up 11 per cent at constant exchange rates and 5 per cent at actual rates.

    Underpinned by solid performances in both jewellery and watches, overall retail sales maintained strong momentum, recording 13 per cent growth. Jewellery shone with an 11 per cent increase.

    Other businesses posted stable sales, with growth notably from Montblanc, Chloe and Lancel. Excluding the impact of the sale of Shanghai Tang, the other businesses would have had moderate growth.

    Sales over the nine months to the end of December grew by 10 per cent at constant exchange rates and by 7 per cent at actual exchange rates.

    Richemont’s portfolio of international “maisons” covers three segments: jewellery (Cartier, Van Cleef & Arpels and Giampiero Bodino), specialist watchmakers (A Lange & Sohne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, Officine Panerai, Piaget, Roger Dubuis and Vacheron Constantin, as well as the Ralph Lauren watch and jewellery JV), and other businesses (including Alfred Dunhill, Azzedine Alaia, Chloe, Lancel, Montblanc and Peter Millar).

    Richemont also holds a 49 per cent equity-accounted interest in the Yoox Net-a-Porter Group.

  • Toyota, Mazda to build $1.6 billion plant in Alabama

    Toyota, Mazda to build $1.6 billion plant in Alabama

    Alabama will be the site of a new $1.6 billion Toyota Motor Corp and Mazda Motor Corp auto plant, a victory for President Donald Trump who had prodded manufacturers to build new U.S. facilities and threatened tariffs on foreign production, sources said on Tuesday.

    The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in Huntsville, Alabama, and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers.

    A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said.

    The new plant –in a state Trump won by 28 points in 2016 — could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs. The companies said they expect the plant to open in 2021.

    Trump tweeted in March he wanted “new plants to be built here for cars sold here.” The White House did not immediately comment on Tuesday.

    The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.

    Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives.

    A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment.

    In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina.

    Local media last month said the leading site under consideration was in northern Alabama’s Limestone County, near Toyota’s large engine plant in Huntsville. In September Toyota announced a $106 million technology upgrade for the Huntsville plant.

    A Chamber of Commerce of Huntsville website for the “Huntsville Mega Site” touts the fact it has been “certified as development-ready.” The commerce chamber, local and state officials declined to comment on Tuesday on plans for the plant.

    A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the U.S. market in Mexico.

    “Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax,” Trump posted on Twitter in early 2017.

    Toyota and Mazda announced plans for a new plant in August. Toyota said it would shift production of Corollas from Canada to the new venture rather than in Guanajuato, and would build Tacoma pickups in Mexico instead. Mazda plans to build new crossover SUVs at the plant.

    Trump praised the joint venture announcement, saying in August on Twitter: “Toyota & Mazda to build a new $1.6B plant here in the U.S.A. and create 4K new American jobs. A great investment in American manufacturing!”

    In October, Toyota said it would scale back investment in a planned plant in Mexico by 30 percent to $700 million and cut planned annual capacity in half to 100,000 vehicles as it shuffles its production plans to meet market demands.

    Toyota has 10 U.S. plants in eight states in an arc running from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas.Toyota and Mazda announced a capital alliance in August and are exploring joint development of technologies for the basic structure of competitive electric vehicles.

    Over the last 30 years Toyota, along with German and Asian automakers, has built a second auto industry in the United States, rivaling the operations of the Detroit Three automakers in size and employment, but with newer, and fewer unionized, plants.

    States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies. Southern U.S. states have the advantage of good transportation infrastructure, business-friendly regulators and generally anti-union politicians.

    The Alabama Department of Commerce shows 150 of the large automotive suppliers operate in the state, providing the logistical strength that Kristin Dziczek, a researcher at the Center for Automotive Research in Michigan, said helped land the plant.

    Dziczek said that Alabama in 2017 was tied for fifth among U.S. states in auto production, at 9 percent with Tennessee. It was behind Michigan at 19 percent; Indiana at 12 percent, Kentucky at 11 percent; and Ohio at 10 percent.

    “The impact of an auto assembly plant extends beyond its immediate economic impact, and that’s why states offer robust incentives,” said Dennis Cuneo, a site-selection consultant and former Toyota executive. “It creates a halo effect that in turn helps attract other projects.”

    Alabama spent an estimated $250 million to woo Daimler AG’s Mercedes-Benz to put an auto plant in Tuscaloosa two decades ago.

  • Japanese baby products firm Ficelle makes full-scale Thai debut

    Japanese baby products firm Ficelle makes full-scale Thai debut

    Japanese baby products retailer Ficelle has launched its first outlet in Thailand.

    In partnership with distributor K-AG Kin All Gen, it has opened a store in Bangkok’s Central Embassy shopping mall. This follows a six-month trial of online sales in Thailand last year, which raked in THB5 million (US$155,000).

    Ficelle offers a range of brands, including Japan’s 10mois, with such items as baby and maternity clothes, sleeping vests, bibs and portable chairs.

    K-AG Kin All Gen executive director Lukkana Jaovisidha says the luxury goods market in Thailand, particularly babycare products, is expected to grow. The trend of having fewer children means parents are likely to spend more on infant apparel and baby accessories per child.

    Nearly a third of customers are expected to be expatriates in Thailand.

    Two more stores are planned for Bangkok this year, including a flagship in a Takashimaya department store. The partners hope to have five shops in Thailand by 2020.

    Ficelle has also just opened an outlet in Singapore following product launches in Hong Kong, South Korea and Taiwan.

  • MUJI Moves Into Hospitality With New MUJI Hotel and Restaurant

    MUJI Moves Into Hospitality With New MUJI Hotel and Restaurant

    Wood-lined bedrooms, a minimal diner, a library and a shop feature in the Muji Hotel in Shenzhen, which opens next week.

    In the Futian district, it is the first hospitality project initiated by the Japanese retailer, known for its minimalist homeware products. These feature in the hotel to reflect Muji’s simple aesthetic – described by the brand as an “anti-gorgeous, anti-cheap” concept.

    As well as 79 guest rooms, the hotel will offer a gym, a diner, three meeting rooms, a library and a shop, as reported.

    In the bedrooms, Muji products will range from toothbrushes to electric kettles and wall-mounted CD players.

     

     

    Muji Diner, the third-floor restaurant, will serve local food inspired by international home cooking, all served on Muji dinnerware.

    On the same floor and to be open 24 hours a day to the public as well as guests, the library will have a selection of more than 650 books.

    A small gym is equipped with running machines, aero-bikes and workout equipment, while a shop allows guests to buy the products they have been using inside the hotel.

    A second Muji hotel will follow in Tokyo’s Chuo City next year.

    The hotels are the latest architectural project to be initiated by the Muji, following on from a 9sqm prefabricated house and a trio of huts designed by Konstantin Grcic, Jasper Morrison and Naoto Fukasawa.

    Established in 1979, Muji is commonly referred to as a “brandless” company as its products bear no logos.

  • Japan’s new cryptocurrency crooners sing the bitcoin beats

    Japan’s new cryptocurrency crooners sing the bitcoin beats

    Move over AKB48, Japan has a new all-girl “idol” band – the Virtual Currency Girls – on a mission to educate the public about bitcoin and other cryptocurrencies.

    Each of the eight girls in the band, known in Japanese as “Kasotsuka Shojo”, plays a character representing a virtual currency such as bitcoin, ethereum or ripple.

    Promotional material shows the performers wearing character masks, frilly mini-skirts and “maid” aprons complete with knee-high socks.

    The Virtual Currency Girls are due to hold their debut live concert in Tokyo on Friday (Jan 12), according to their management company Cinderella Academy.

    In keeping with the theme, payment for merchandise will be accepted only in virtual currencies.

    “We want to promote the idea through entertainment that virtual currencies are not just a tool for speculation but are a wonderful technology that will shape the future,” said the group’s leader Rara Naruse, 18, in an online statement.

    In their debut song, The Moon and Virtual Currencies and Me, they warn against fraudulent operators and urge people to make sure of their online security.

    The group is tapping into a rich seam in Japan, where bitcoin is recognised as legal tender.

    Nearly one-third of global bitcoin transactions in December were denominated in yen, according to specialised website jpbitcoin.com.

    The group’s launch comes on the heels of a recent market frenzy which boosted bitcoin up to nearly US$20,000.

  • Asia Keeps Swiss Watch Recovery on Track

    Asia Keeps Swiss Watch Recovery on Track

    China and Japan continue to grow as key markets for Swiss watches, reports the Federation of the Swiss Watch Industry.

    China had its strongest growth for 30 months at 39.8 per cent, while Japan, up 22.5 per cent, showed strong growth for the second month in succession.

    Hong Kong has confirmed its recovery with its eighth positive month, exports there rising 4.4 per cent, while exports to Singapore, Switzerland’s seventh-largest market, rose 10.6 per cent.

    Export growth has continued over the seven months to the end of November, says the federation. The total value of exports reached nearly FRF2 billion francs (US$1.9 million), equivalent to 6.3 per cent growth over the figure for the previous November.

    Electronic watch exports were down by more than 1 million units to 15.6 million, a drop of 6.3 per cent. By contrast, mechanical watch exports rose 4.6 per cent to 6.59 million pieces.

    All groups of materials shared in the value growth, in particular steel, up 7.9 per cent. While the other materials category grew 32.3 per cent, the number of pieces fell 1.1 per cent.

    Watches priced at less than FRF200 (export price) fell substantially in November, says the federation, while the other price segments advanced in terms of both value and volume. The FRF200-500 category had the best performance with growth, up 20 per cent.

  • Hyundai Motor, Kia Motors flag slow sales growth in 2018

    Hyundai Motor, Kia Motors flag slow sales growth in 2018

    South Korea’s Hyundai Motor and Kia Motors on Tuesday flagged only modest sales growth in 2018, suggesting a slow recovery from a slump linked to their lack of SUVs in the United States and diplomatic tensions with China.

    Hyundai and smaller affiliate Kia, which together make the world’s fifth-largest automaker, said demand was expected to soften in the U.S. and Chinese markets as they unveiled a combined sales target of 7.55 million vehicles this year.

    Analysts said that would be a slight increase on 2017, when the automakers are estimated to have sold about 7.3 million vehicles, their lowest in five years.

    “The target for Hyundai and Kia is lower than expected. It seems to be a conservative target, reflecting a slow recovery in China and ongoing U.S difficulties,” Kim Jin-woo, an analyst at Korea Investment & Securities said.

    The 2017 sales figures are due out later on Tuesday but analysts expect the South Korean duo to fall well short of their target of 8.25 million vehicles, marking their third consecutive annual miss.

    Hyundai Motor shares declined 2.2 percent after falling as much as 4.5 percent on Tuesday morning, and Kia Motors stocks were down more than 1.6 percent. The broader market rose 0.2 percent.

    The firms’ sales tumbled last year in China, the world’s largest auto market, amid a chill between Beijing and Seoul over South Korea’s deployment of a U.S. anti-missile system.

    Sales in China and the United States were also hurt by a failure to capitalize on surging demand for sports utility vehicles (SUVs).

    While Hyundai Motor has plans to offer more SUVs in the United States and China, analysts said new models such as the redesigned Santa Fe SUV may come too late in the year to significantly impact sales.

    The expiration of a tax cut on small-engine cars in China also would be a negative for Hyundai’s sedan-heavy line-up, they said.

    Hyundai Motor Group Chairman Chung Mon-koo said in a statement the South Korean automakers would launch 12 new or refreshed models this year.

    They would “actively venture into” new markets like Southeast Asia, as protectionism was expected to grow elsewhere, he added.

    South Korea and the United States will hold talks on a trade deal on Jan. 5 although U.S. President Donald Trump has threatened to withdraw from the pact.

    Chung, 79, skipped his annual New Year speech to employees for a second year in a row. He has not made any public appearances since December, 2016.

  • Aeon Mall’s 9-month profit seen rising 10% to record

    Aeon Mall’s 9-month profit seen rising 10% to record

    Strong earnings in China and Southeast Asia have helped boost operating profit for Japanese developer Aeon Mall to about ¥33 billion (US$293 million) for the nine months to the end of November.

    This is up about 10 per cent on the same period a year earlier, and would be a record. Its previous high was ¥30.1 billion in 2013as reported. Operating revenue rose 7 per cent to a little more than ¥210 billion.

    Its Southeast Asian business has come out of the red, with overseas losses shrinking to nearly ¥1 billion for the period from ¥2.9 billion previously. Thirteen of the company’s 19 malls in China and Southeast Asia turned a profit, up from eight out of 17 a year before.

    In Japan, sales rose 3 per cent for specialty-store tenants in its malls offering household products, food and other items, boosting rent revenue correspondingly.

    Aeon Mall’s operating profit for the full year through February is expected to rise 11 per cent to ¥50 billion on a 9 per cent gain in operating revenue to ¥295 billion.