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- 01:03:39.3 I would like to ask about i-BELT. Previously, I remember reading an article, perhaps in the Nikkei, talking about how you might be able to increase sales on a per line basis from around ¥200,000 to ¥300,000 to ¥5 million in 5 years’ time.
Can you tell me if the ¥200,000 or ¥300,000 is referring to a single transaction, or is the value of an annual contract per line? Can you tell me how much you expect to generate per line by when?
- 01:04:09.6 (Miyanaga) We are currently conducting a number of trials for various business models.
One of the models we are considering is an annual contract. The reason for this is because the solutions are likely to be constantly evolving as we work with our customers, so it is difficult to pinpoint a specific end-point. We think that we can provide added value even with an evolving process. From that standpoint, given the nature of the relationship it may be better to use a contractual structure where we are paid on a fee basis rather than being paid on a transactional basis. At this stage, I feel this may be the right approach.
In terms of the value of the contracts, because of the ongoing relationship with the customers, there are a number of elements that could generate revenues, such as the sale of components or providing engineering or maintenance services or replacement parts. This framework lends itself to generating synergies. Although the solutions may be overlap with sales of other products, I believe we can more than offset this overlap with synergies. I would hope to see us generate revenues of the order of millions. This has the potential to become a new way for doing business, not just for the medium-term up to FY2020, but on a ten-year span or longer.
- 01:06:01.3 Did that answer your question? Thank you.
- 01:06:05.1 We have time for one more question. The person in the middle section please.