Mahendra Negi
Executive VP, CFO & Representative Director
[Interpreted] Thank you. This is Negi speaking. And I would like to start the earnings results summary for Q2, 13% growth in net sales, but cost actually grew by 29%. So operating income was minus 54%. At the bottom of the slide, we can see the numbers at a constant currency basis, net sales growing at 3% and ARR growing at 6%, which is an improvement. The biggest point is a decline in income. What has happened? Well, Eva Chen will be providing detailed explanation later on. But the biggest focus here is cloud-related expenses. Why has it increased so much?
Well, rather than paying out a lot of dividends, investors have told me in the past many times that we should be investing into the future. And based on that, we have exactly done that, investing into the future. It’s not simple CapEx. Our investment directly affects the P&L. This is one big factor behind this number, but Eva Chen will give you more explanation later on.
ARR progression. This is an important point. Rather than net sales, we are using ARR to explain the future of the company. So ARR for the enterprise customers, this is improving from 4% from the previous quarter to 6%. In the second half, we expect further improvement in this number.
