Q: What was the cumulative third quarter revenue of the mining machinery business, excluding the foreign exchange loss? Do you see any sign of recovery in the mining market? Please also share with us your outlook for FY2017.
A: Excluding the foreign exchange loss, sales of the mining machinery remain mostly unchanged year-on-year, and the revenue of the mining parts and services increased by 16%. Regarding the demand forecast of mining machinery for FY2016, the demand for hydraulic excavators will remain unchanged year-on-year (provided, however, the demand for large machineries over EX1900 will be decreased by 20% year-on-year), and the demand for dump trucks will be decreased by 20% year-on-year. Regarding machineries for contractors and quarrying business, such as EX1200 and EX1900, demand does appear to be recovering. However, there are still no signs of recovery in the demand for hydraulic excavators and dump trucks over the size of EX2600 and EH3500, which are mainly for major mining companies. We expect recovery of the demand for new mining machinery may start in or after the second half of 2017.