7733.T

Bob and Keith discuss Q3 execution issues in GI US, emphasizing commercial execution; China saw 6% growth after tightening go-to-market; FDA inspections and proactive actions; headcount optimization with cost provisions; leadership focus on global operations and R&D motivation; SIS voluntary recall and patient safety focus.

Management commits to 100-plus basis points of margin expansion starting FY '27, uses ranges for outlook, aims for mid-single-digit revenue growth and 20+% operating margin.

FDA inspection observations, potential ship holds, China market dynamics, impact of product recalls on costs.

Q: First question on new guidance, GI division forecast revision, Q3 execution and Q4 confidence.

A: Bob and Keith discuss Q3 GI US execution issues, China's 6% growth after tightening, and Q4 confidence.

Q: FDA inspection observations, addressability, and cost impact.

A: Robert White talks about FDA inspections, proactive actions, and margin expansion commitment.

Q: China situation, recovery, and CapEx headwinds.

A: Robert White discusses China strategy, new President, and gradual recovery.

Q: Headcount optimization, cost provisions.

A: Izumi Tatsuya explains cost provisions and allocation.

Q: FDA inspection, ship holds, GI impact.

A: Robert White talks about inspections, ship holds, and product impacts.

Q: Core operating margin, base gross margin.

A: Robert White discusses margin expansion and gross margin dynamics.

Q: Leadership team motivation in manufacturing/R&D.

A: Robert White and others talk about global leadership and Japanese talent development.

Q: SIS voluntary recall, culture change.

A: Izumi and Seiji discuss ship hold impact, patient safety, and quality focus.