Main questions and answers at Financial Results Briefing for 2Q FY2017

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What is the net sales outlook going forward and new orders outlook after the Olympics?

Net sales for this full fiscal year are expected to be lower than the initial forecast, but there is no particular delay in the process. We expect the peak to be from 2018 to 2019. New orders are expected to remain strong for several years after 2020.

What is the prospect of gross margin ratio? Can we expect for further improvement?

In addition to becoming busy toward 2020, labor costs are expected to rise due to the influence of the "Work Style Reform" such as the five-day workweek system. Therefore, it is expected that making considerable improvements from the current level will not be easy.

A large amount of cash and deposits has been built up, but do you think that it is at the proper level?

Although money received tends to concentrate at the fiscal year end in our company, I think our situation during the period is not greatly different from that of other companies. However, we think that the use of cash and deposits will be an important theme in the medium-term management plan to be started next period.

Do private customers understand the "Work Style Reform"?

It is difficult to change the construction period of the projects that have already been ordered, so I think that our efforts are necessary in areas such as efficiency at first. As the next step, I think that it is necessary to have a call for action so that we can gain our customers' understanding at the time of their order.