But you may ask why we are having such a gap between what we had announced and the latest outlook. And this slide explains this question. At the 1Q end, we announced operating profit becoming 60 billion yen. Then 3 months have passed, and among the external and special factors is the forex, the Japanese yen becoming stronger. Another factor is tariffs. But between 50.1 billion and 27.5 billion, we had those factors on business or internal side. There are factors for downward corrections by business, so the operating profit became 27.5 billion yen. But this time we are announcing our operating profit for the full year is not 27.5 billion, rather it is going to be 20 billion yen. The difference of 7.5 billion yen comes from the additional structural reform expense (SRE), which we had not originally considered. This additional SRE is the cost behind our forecast to carry out the planned structural reform initiatives. As you see here, we have 4 areas. First is service efficiency by promoting shift-left strategy. Second is production aiming to improve production efficiency. And third and fourth to improve admin and indirect costs by reorganizing organizations and functions, or better utilize outsourcing, operational improvement by leveraging digital technologies as much as possible including RPA. By resorting to digital operation, we expect to reduce fixed cost as much as possible. They account for 7.5 billion here. Konica Minolta is now looking ahead as our key words indicate, such as value-up, transform or direct sales for new business opportunities. This time, we do not intend to reduce those direct sales head-counts. If necessary, we are willing to get resources from outside, so that we can achieve the target for 2020. Though we are behind by one year, but we stick to our plan while making further efforts.
At the 1Q end, we announced operating profit becoming 60 billion yen. Then 3 months have passed, and among the external and special factors is the forex, the Japanese yen becoming stronger. Another factor is tariffs. But between 50.1 billion and 27.5 billion, we had those factors on business or internal side. There are factors for downward corrections by business, so the operating profit became 27.5 billion yen. But this time we are announcing our operating profit for the full year is not 27.5 billion, rather it is going to be 20 billion yen. The difference of 7.5 billion yen comes from the additional structural reform expense (SRE), which we had not originally considered. This additional SRE is the cost behind our forecast to carry out the planned structural reform initiatives. As you see here, we have 4 areas.
First is service efficiency by promoting shift-left strategy. Second is production aiming to improve production efficiency. And third and fourth to improve admin and indirect costs by reorganizing organizations and functions, or better utilize outsourcing, operational improvement by leveraging digital technologies as much as possible including RPA. By resorting to digital operation, we expect to reduce fixed cost as much as possible. They account for 7.5 billion here. Konica Minolta is now looking ahead as our key words indicate, such as value-up, transform or direct sales for new business opportunities. This time, we do not intend to reduce those direct sales head-counts. If necessary, we are willing to get resources from outside, so that we can achieve the target for 2020. Though we are behind by one year, but we stick to our plan while making further efforts.