Hello, everyone. I am Shuichi Ishibashi, Global CEO. I will explain the Financial Results for the First Half, as well as the Fiscal 2023 Guidance. First, regarding the overall summary. The financial results for the first half and the fiscal 2023 guidance include deterioration of the business environment, which is worse than the initial assumptions. In particular, replacement tire demand in North America and Europe was more severe than initially assumed. Our projection on the severity was too optimistic, and there was a gap between our assumptions and the actual market situation. Under this difficult business environment, we managed increase in Premium Tire sales volume and improvement in price and sales mix with flexibility and agility to secure financial results for the first half, partly thanks to the tailwind from the currency exchange. We will continue management with the same stance into the second half. I will explain the business environment by product type. Demand recovery versus prior year of original equipment tires for both Passenger Cars and Truck & Bus is continuing, reflecting the recovery in new car production with the alleviation of the semiconductor shortage. Particularly for high rim diameter Passenger Car T ires, demand is growing compared to prior year, both from demand recovery and from the shift into larger vehicles and EVs for new cars. Concerning replacement tires for Passenger Car s, as mentioned in the beginning, the environment is deteriorating more than the initial assumptions, mainly in North America and Europe. In both North America and Europe, sell-out declined in the first half, reflecting the economic slowdown. Distribution inventory adjustments continued. Sell-in tire demand declined more than initially assumed. In North America, we consider that distribution inventory have normalized by the end of the first half, and we do expect demand recovery in the second half. However, demand will be lower than prior year and the full year. Europe, sell-in demand dropped in the first half to as low as 87% compared to last year. Distribution inventory levels remain high, and considering that sell-out recovery in the second half is expected to be weaker than initially assumed, sell-in demand for the year is also expected to be lower than initial assumptions. On the other hand, demand for high rim diameter tires remained relatively resilient. We expect growth versus prior year in the U.S. as in initial assumptions, and even in Europe, where tire demand has significantly dropped, we expect demand to be around the same level as last year. Regarding demand for Truck & Bus Tires, distribution inventory adjustments in North America and Europe are having a greater impact than assumed. First, in North America, sell-out declined in the, in the first half with the economic slowdown, and while we expect recovery in the second half, it will be slower than the initial assumptions. Impacted by this, distribution inventory, which we expected would optimize by the end of the first half, remains at a high level. We anticipate inventory adjustments to be completed by the third quarter. As a result, sell-in demand declined more than initially assumed at approximately 80% compared to last year for the first half. Even if recovery in the second half is considered, we expect demand to be at approximately 90% versus prior year for the year. Environmental deterioration is even more prominent in Europe. Sell-out declined more than assumptions, and sell-in is also in a very tough situation. Sell-in demand for the first half was significantly lower than assumed, at approximately 70% to prior year. We think distribution inventory is gradually optimizing, but as sell-out is slower, the sell-in demand will be lower than assumptions, not reaching 90% compared to the prior year for the year. Faced with this environment and deterioration, we will transform into a, quote, unquote, "strong Bridgestone, capable of adapting to change." Here, I will talk about our actions to secure results for the year. First, regarding Passenger Car T ires, we will continue to expand sales and increase market share of higher rim diameter tires, which are relatively resilient. We expect to increase the volume of high rim diameter tires sold, original equipment tires and replacement tires combined, by 10% compared to last year for the year. For replacement tires, we plan to increase market share in both North America and Europe. Furthermore, we will steadily improve sales mix of premium tires, which includes not only high rim diameter tires, but also premium tire brands and premium tires in each region, region, compared to the previous year. F or the year, approximately 55% of global replacement tire sales will be premium tires. For Truck & Bus Tire use as well, we have taken into account the large environment deterioration. In an environment where the global sales volume of new tire use are expected to be approximately 19% to prior year for the year, we will thoroughly ensure focus on premium. In Japan, under the idea, "from volume to value", we will narrow down low profit categories, and in North America, we will steadily increase market share of our major brands, Bridgestone and Firestone. We will also grow the Retread business in North America and Japan, in which we are investing to reinforce production. This will not only contribute to the performance of the entire Truck & Bus business, but also establish foundations of solutions for the 2024 Mid-Term Business Plan s. We plan to increase market share of Retread compared to prior year in both North America and Japan, and also grow the portion of Retread among total sales volume of Truck & Bus Tires for replacement. In Japan, we will create demand for Retread as market leader, and also contribute into sustainability to establish a circular business model. Retread in North America is contributing to the 2023 financial results as a business with high profitability. Regarding off-the-road tires for mining vehicles, which is one of the pillars of premium tires, especially for sales of ultra-large and large tires, we expect global sales volume to steadily exceed the prior year. For small and medium-sized tires, impacted mainly by distribution inventory adjustments of tires for construction vehicles in North America, sales in the first half is slightly below last year. However, we expect recovery in the second half, and plan the same level of sales as last year for the full year, original equipment tires and replacement tires combined. I will now explain financial results, reflecting our initiatives to become a, quote, unquote, "strong Bridgestone" and focus on the premium. In the first half, we achieved increase in both revenue and adjusted operating profit versus prior year, partly thanks to the tailwind from the currency exchange. Along with sales expansion of premium Passenger Car T ires and tires for mining vehicles, we covered increases in raw material price, energy costs, and labor costs from inflation, et cetera, through improvement in price and sales mix. We also drove initiatives such as thorough expense management and on-site productivity improvement in production and manufacturing. We will continue to constantly aim to optimize balance for increase in Premium Tire sales volume and improvement in price and sales mix. Lastly, concerning the fiscal 2023 guidance, there are no changes from figures announced back in February 2023. Compared to plans in February, the sales mix within replacement and original equipment is deteriorating, with a decline in sales of replacement tires and increase in sales of original equipment tires will negatively impact profit. To counter this, we will thoroughly ensure strategic price management and pursue optimal balance between sales volume and price for replacement tires. Through thorough expense management and cost improvement, we will minimize the impact from deterioration of the business environment. Given the yen depreciation tendency in the currency exchange premise for the year compared to initial plans, we are expecting to secure results for the full year. For shareholder returns, there are also no changes from plans announced back in February. The business environment is expected to be more severe than the initial assumptions, we will focus on improving business quality as a final year of the mid-term business plan. Carefully watching demand trends, we will thoroughly ensure flexible and agile supply and inventory management. We will also ensure focus on premium and maintain our stance constantly, aiming to optimize the balance for increasing premium tire sales volume, improving price and sales mix throughout the year. We will continue management focusing on, quote, unquote, "execution results" to secure results. Details of financial results will be covered by our Global CFO Hishinuma, after my presentation. Thank you very much for your attention. That was the presentation by Global CEO Ishibashi. Moving on to the presentation by Global CFO, Mr. Hishinuma, on the subject of financial results for the first half fiscal 2023. Global CFO Hishinuma is my name, to present the topic of financial results for first half fiscal 2023, as well as full year 2023 guidance. This is my agenda today, basically to supplement some financials and also the breakdowns for some of the key figures. Starting with the business and financial performance for the first half fiscal 2023. Consolidated results for the first half in 2023. Here, focusing on profit attributable to owners of parent. In reference to adjustment items or adjusted items, whereas there was JPY 32.6 billion losses due to impairment losses for the Russian Tire Business related assets and recovery expenses at the Bridgestone Cycle. For the 1H in fiscal 2023, there was JPY 12.3 billion gains on the sales of land, and a substantial decrease in losses from discontinued operation, among others, resulting in 97% increase in the quarterly profit attributable to parent versus prior year, at JPY 182.6 billion. Next, overview of the performance for the first half fiscal 2023. Here, in reference to overview of the performance by product. Passenger Car and Light Truck Tires. For the OE segment, although there were differences by region, tire demand increased as the vehicle production level at OEMs has improved. In the replacement segment, while tire demand declined due to the economic slowdown, sales for premium tires continue to be resilient. In Japan, for your information, advanced demand due to increase in the price of winter tires in the second half of the fiscal year was there. For Truck & Bus Tires and replacement segments, sales declined versus prior year in the U.S. and Europe, particularly so in Europe, due to the economic slowdown. ORR or the mining tires, demand for minerals continues to be resilient, exceeding sales versus prior year globally. On to the business environment for the first year. Currency exchange: Japanese yen depreciated against both the U.S. dollar and Europe, euro, compared with the prior year. Raw materials. The purchase cost of raw materials increased due to spike of energy, labor, and other costs of raw material suppliers, though the feedstock prices of raw materials continues to fall versus prior year. For the conversion costs, conversion costs increased versus prior year, which was due to continued inflation in energy, labor, and other costs at plants. Tire demand. OE segment. Although there were differences by region, tire demand recovered as the semiconductor shortage at the OEMs improved. Replacement segment. Tire demand for both Passenger Car and Truck & Bus Tires has declined due to economic slowdown, mainly in the U.S. and Europe. Demand for Passenger Car, high rim diameter above 18-inch tires continued to be relatively resilient. On to the tire sales units, the growth for the first half. Passenger Cars, Light Truck, and then Truck & Bus T ires. Backed by economic slowdown, global sales volume declined versus prior year. For the OE segment, though there were regional differences, tire sales showed a trend of recovery as vehicle production level at OEMs recovered on the improvement of semiconductor and the shortages. In the replacement economic slowdown, centering on the U.S. and Europe, decreased sales versus prior year. ORR, ultra-large at 105%, large size at 109%, both above the prior year level. The sales increased significant. We continued with the focus on the premium zones, the Passenger Car HRD above 18 inches, globally, sales was 1.8% of the prior year. Analysis of adjusted operating profit for the first half, JPY 31.7 billion increase year-on-year. Negative factors, such as raw material input cost increase and inflation of energy and labor costs were recovered by selling prices and sales mix. Declining demand impacted sales volume negatively, but with the backing of yen depreciation, adjusted operating profit increased. On to consolidated financial results by segment. In Japan and Americas regions, up end revenue and adjusted operating profit on one hand. In other regions, revenue increased, with adjusted operating profits decreasing. In Japan, there was increase in strong mining tire sales increase, profitability of export and business for general tires improved, and also there was an increase in sales accompanying last-minute demand to buy winter tires in the second half, pushed up profitability versus prior year. Consolidated financial results by product for the first half. Passenger Car and Light Truck Tires, revenue and profits increased year on year, lower sales volume pushing down profitability. Lower profitability as a consequence of changes in business composition between the OE and replacement segment, among others, squeezed margin by 0.4 percentage points versus prior year. Truck & Bus T ires in Americas and Japan, Retread sales increased with better profitability year on year, increase in revenue and profits, and margin improvement as well. Specialties. Highly profitable mining tire sales was quite favorable, with the backing coherent depreciation in the FX. Revenue and adjusted operating increased from the wisdom margin improvement. Diversified product business continued with revenue increase in the adjusted operating profit, with details to follow on the next page. Flipping to the next page, the breakdown for the diversified product business and the continuing operations. Positive profits continued from the prior year. Chemical and industrial profits business. On top of the increase in revenue and operating profit, profitability improved also to continue on steady improvements. Sports and cycle business. In the cycle business, there was a booking of cost of safety inspection in the prior year, in reference to which, though revenue declined, declined, this year, adjusted operating profit did increase in 1H 2023. Diversified products business in Americas. Selling price improved, enabling the trend of improvement from margin in the final quarter prior year. Balance sheet and cash flow highlights. Total assets increased by JPY 429.1 billion from December, end 2022, at JPY 5,391.3 billion. The backing of the yen depreciation was a major factor at play. Equity ratio increased by 1.8 percentage points, at 61.6%. Financial health continues to improve. Free cash flow, JPY 107.9 billion positive. Increase in three months profits, improved working capital conditions and others, brought about the improvement of free cash flow versus prior year. Finally, for the fiscal 2023 guidance. As said before, there's no change in the consolidated financial forecast for fiscal 2023 and dividend from February guidance. Here, I would like to offer explanations on the assumptions. For the second half, in currency exchange, JPY 133 per dollar and JPY 143 per euro. Raw material costs. At the moment, price is softening versus February guidance. The price for natural rubber and crude oil is expected to slowly increase versus prior year as the economy recovers in the second half. Tire demand. OE demand is basically constant from the February guidance. For the replacement segment, for the overall demand, it is expected to recover throughout the second half, though expected to fall short of February guidance. At the same time, Passenger Car, high-rim-diameter tires and mining tires, expectation is that the demand will remain relatively resilient. Under such business environment, though with the negative of this sales from the February guidance, with the expense and cost management and positive effects impact of Japanese yen depreciation, our expectation is that we will secure the full year financial forecast. Business environment is getting tougher. However, with the focus on improving business quality to continue management focusing on execution and results, we shall secure the full year financial performance. That concludes my presentation to you. Thank you. Thank you. That was the presentation by our Global CFO, Naoki Hishinuma, on financial results for first half fiscal 2023. With that, we complete the presentation of financial results for the first half 2023. We would like to continue with the Mid-Term Business Plan for 2024 to 2026, the Planning Process Update 2. We would like to start the Mid-Term Business Plan 2024 to 2026, Planning Process Update 2 of Bridgestone. I would like to again introduce to you Mr. Shuichi Ishibashi, Member of the Board, Global CEO and Representative Executive Officer, and also Mr. Naoki Hishinuma, the CFO. I would like to invite Shuichi Ishibashi to present the Mid-Term Business Plan 2024 to 2026, Planning Process Update 2. Hello again. This is Shuichi Ishibashi, the Global CEO. In this session, I will talk about the Mid-Term Business Plan for the three years from 2024 to 2026, the 2024 MBP. Bridgestone is accelerating transformation in alignment with the roadmap presented in 2030 long-term strategic aspiration. In the 2024 to 2026 MBP, which is the halfway point towards our aspiration, we will focus on the premium business and the solution business to create new premium. To build this plan, we determined management issues one by one, and clarified what to do and what not to do by June of this year, 2023. We went through persistent discussion of 130 issues, including 85 management issues covering the entire value chain, and clarified roles and responsibilities of 45 new tire plants with global executive members. First of all, regarding what to do in the Premium Tire Business, which produces and sells tires, we are determining strategic direction by region and product type. Dan-Totsu R&D and manufacturing power, and Dan-Totsu product power will be the starting point for the entire strategies. To create new premium, we will execute investment to reinforce production of ENLITEN and MasterCore. Moreover, we will promote value creation through fusion of ENLITEN and BCMA. For BCMA, we will start visualization of quantitative benefits, aiming start of contribution to profit in 2024 MBP. Also, we will work on shifting to green and smart factories based on the clarified roles and responsibilities of 45 factories. In addition, we will refine a global supply chain management power to support Dan-Totsu product power and global R&D and manufacturing power. Through proving the value of Dan-Totsu products, we will strengthen our approach to premium and prestige OEs. Regarding what not to do, we determined business by region, product type, and channel, and decided further reduction in business with low profitability. For the Solutions business, which amplifies value of Dan-Totsu product during customer tire use, we determined what to do and what not to do, considering synergy with the Premium Tire Business, growth potential, and profitability by each solution and region. I will explain the details later on. Regarding what to do, we will establish and execute global and regional strategy in five categories. First, I will explain one to three, which are about the Premium Tire Business. We are building global and regional strategy of the Premium Tire Business based on Bridgestone's position in each region, determined at our sole discretion based on market share, brand awareness, and our strengths in price leading power, product power, sales network, and business foundation. We will consolidate our Dan-Totsu number one position where possible in the Premium Tire Business for Passenger Car and Truck & Bus Tires i n Japan, Thailand, and Indonesia. Next, we will establish number one position in the Middle East, North Africa, and Australia and New Zealand, where we have historically had strong presence, and in Vietnam, which is a growing market. For India, we will focus on number one position in the Premium Tires for the Passenger Car s. We will aim for number one position from now on in North America, where our, our most important market, in Latin America. In North America, we will drive reinforcement of business structure, aiming for solid number one position in premium. Regarding Europe and China, we will establish the unique position. For the Europe business, which is important for us from the perspective of EV strategy, sustainability, et cetera, the weak business foundation has been our challenge. In 2024 MBP, we will aim to be at a strong follower position through rebuilding and reinforcing the business foundation. For the China business, we will focus on passenger premium tires and promote the premium niche strategy, as mentioned earlier. Finally, for off-the-road aircraft and premium motorcycle tires, we will strengthen our global number one position. What supports this global regional strategy is a Premium Tire Business, which are global R&D and manufacturing power and supply chain management power. To refine these thoroughly, we clarified roles and responsibilities of 45 new tire plants one by one. 16 plants were specified as top priority investment plants to reinforce production of premium products. We will execute investment to reinforce production of our new premium ENLITEN and MasterCore, and shift to green and smart factories. Based on the clarified roles and responsibilities, we will build a sourcing plan for each plant linked with BCMA. We will build new global optimum supply chain based on flexible and agile management that we developed while overcoming changes in the turbulent business environment in the 2021 MBP. As one of the initiatives, we will reinforce Japan's manufacturing leadership. For Japan and Asia, we will enhance premium production power as our core of manufacturing and increase global contribution. In order to realize new value creation in 2024 MBP, it is necessary to establish the base technology to produce Dan-Totsu products, which is the starting point of everything in the Premium Tire Business. It will be ENLITEN and BCMA that we are placing as Bridgestone's base technology for product. Through fusion of ENLITEN, the base technology for product design, and BCMA, the base technology for R&D and manufacturing, we will take on the challenge to create value and gain competitive advantage. We will reinforce our earning power and create corporate value to move to the next stage through the fusion of ENLITEN and BCMA. Regarding ENLITEN, while expanding the performance spider chart, we will enable customization, fusing desired complex performance for future mobilities. In addition to needs and wants of the market and customers, it provides new value that customers may not have been imagined, and significantly improve inspiring performances with sharpened edges. It is the base technology to realize ultimate customization. Regarding BCMA, the base technology for manufacturing and R&D, which supports ultimate customization, we will improve efficiency of development and production through sharing modules between different products. It will enable business cost reduction and improve agility. In 2024 MBP, we will take on the challenge to achieve both price increase in accordance with the customer's delight and reduction of business cost, environmental impact, by the fusion of ENLITEN and BCMA. For the value creation through fusion of ENLITEN and BCMA, it is essential to evolve products planning power, which can provide each customer with the best quality based on developing tires thinner, rounder, and lighter. We launched new product of Turanza, a premium tire brand in Europe and North America, through product planning, which maximizes ENLITEN technology. Turanza EV, which was launched in May in North America, is the EV specialized tire representing new premium in EV era. It was developed through customer interviews, mainly in California, where the shift to EV is advancing, and in cooperation with the EV OEMs and Retail channels. It contributes to sustainability by using renewable materials for approximately 50% of the materials used in tires, as well as the significant improvement in wear resistance, which has been a challenge for EV tires. We will provide new value for our customers. In Europe, we have launched Turanza 6, which has significant improvement in wear resistance and wet performance in response to European market needs. Based on this Dan-Totsu product power, we will expand OE fitment of ENLITEN products. It has been fitted to 57 car models so far. We will continue to focus on premium and prestige car models, and reinforce our approaches to OEMs in Japan, Europe, U.S., and China, carefully watching EV market trends. We will also expand the replacement tires, aiming 50 products in cumulative total and 70% of equipment rate of ENLITEN in 2026. BCMA, which supports ultimate customization by ENLITEN, will start contribution to profit in 2024 MBP. BCMA will enable, for example, to consolidate into about five modules by tire category, such as winter tire and sports tire, instead of individual development and production by each product. We can realize efficient production and development through sharing modules between different products. We will take on the challenge on the business cost reduction. Regarding production, each production process will be simplified through reducing number of changeover, which was required by each size and product. This will improve production efficiency and reduce production cost. Regarding development, the development efficiency will be improved by the impact of sharing modules between products. Not only the efficiency of development cost, but also the development agility will be improved. We will increase our speed from product planning and development, responding to customers' needs and wants to launch of new products. Linking with the clarified roles and responsibility of 45 plants, we will begin our initiatives to visualize value creation of BCMA in accordance with the manufacturing capability of each plant. Bridgestone West, which consists of Europe and the Americas, is the region with many challenges in manufacturing capability. First of all, it is essential to reinforce flexibility, which is the foundation of manufacturing, to produce necessary products flexibly. We will work on this in 2024 MBP as a priority initiative. For the plants in Bridgestone East, which have high manufacturing capability and flexibility, we will drive our initiatives to reduce workload at plants and reduce the business cost through improved efficiency by BCMA. I will provide process updates on green and smart factories that we are developing linked with BCMA. Based on the contribution to sustainability, which is at the core of our management of business, we set increase of productivity for smart power and reduction of energy Gentan-i, or energy consumption per unit for green power, as KPIs. We determine green and smart power and manufacturing power, such as productivity and flexibility of each of the 45 plants by June 2023. Bridgestone West is advanced in responding to sustainability and has high green and smart power, with the background that it is difficult to secure talent in manufacturing. Bridgestone East tends to have high manufacturing capability based on the strong operational excellence. We will determine necessary investments and KPIs in 2024 MBP according to each tendency of West and East. These are the key points of what to do in the Premium Tire business. Regarding what to do and what not to do in the Solutions business. We will expand the tire-centric Solutions business, mainly in mature countries. What to do in the Solutions business for Passenger Car s is to reinforce our retail and service solutions network, primarily in the U.S., Japan, and Australia and New Zealand. We will further reinforce and expand 2,200 sites of equity stores in the U.S., and also roll out new store format in 10 sites, combining real and digital from this year. In Japan, we will reinforce our channel network. We will promote enhancement of store network B-Select, which have been launched from this year, and E-Commerce. Regarding Australia and New Zealand, we will reinforce equity and family channels and enhance services together with the mobile van service. Meanwhile, for Thailand, we will rebuild the equity store structure. For the Retail business in Europe, where we have challenges in profitability, we will fundamentally refine it. Regarding the tire-centric solutions for Truck & Bus, we will reinforce Retread, which is at its core, mainly in North America, Japan, and Latin America. In North America and Japan, we are already executing investment to reinforce Retread production. In North America, where we have Dan-Totsu number one position, we will enhance Retread as the axis for Fleet Care, the solutions package for Truck & Bus. In Japan, where we have Dan-Totsu number one position as North America, we will create demand as a market leader. We will reinforce Retread linked with TTP, our solution service. Meanwhile, in Australia and New Zealand, we will rebuild it, and in Europe, as we have many challenges in profitability, we will rebuild it with limited customers and areas. In addition, we'll reinforce our solutions network for Truck & Bus, primarily in North America, as well as Japan and Australia and New Zealand. In North America, where we have 1,200 sites of service network, we will reinforce our solutions network as the key enabler of Fleet Care. While enhancing capabilities for EVs, we will support the shift to EVs from the ground up. We will reinforce our network linked with Retread in Japan and Australia and New Zealand as well. Meanwhile, as for Thailand, we will reinforce after rebuilding its business structure. For Europe, we will rebuild our network linked with Webfleet Solutions in limited areas. Regarding what not to do in the Solutions business, we determined it based on profitability, considering growth potential and synergy with premium tire. We will stop the expansion of B2C subscription model and mobile van service in Europe and North America. In North America, we will consolidate to B2B subscription and utilize it as our mobility ecosystem. Regarding other B2B subscription model in Europe, we will integrate them into Fleet Care. We will rebuild Retail and Retread business with limited areas and customers. In the same manner, we will limit areas and customers for Retread in Asia and Pacific. We will rebuild Retread in Australia and New Zealand and Thailand, and withdraw in some regions. Finally, regarding the mobility to tech business in North America, which is our foundation for the future growth. Through reinforcement of coordination between Webfleet Solutions in Europe and Azuga in North America, we will enhance and expand Fleet Care, which offers premium tire, Retread, and vehicle real-time monitoring, and others, as one package in North America. We will provide a wide range of customer-focused solutions to solve customers' pain points with a combination of real and digital. In addition, we will strengthen our initiatives to respond to the shift to EVs. Regarding the mobility tech business, we will start building it in North America, where we have strong business foundations in 2024 MBP. That is all regarding current updates for the 2024 MBP planning process. Today, I explained the result of identifying what to do and what not to do, and details of what to do. We will update this planning process on the 2024 MBP in November. We appreciate your continued support. Thank you for your attention. Thank you. That was our Global CEO, Mr. Ishibashi, on the subject of Mid-Term Business Plan 2024 through 2026, and Planning Process Update 2. We are ready to open the floor for questions and answers. Let us now start with Mr. Maki, who is with SMBC Nikko Securities, with your questions. Thank you. This is Maki from SMBC Nikko Securities speaking. Hello. I would like to ask two questions today. The first question refers into the FY 2023 performance, particularly with respect to the second quarter, and the other question has to do with the Mid-Term Business Plan. The second quarter, what is your the take as to the actual versus the plan? I'm sure that you have some thoughts, and I would like to hear more. As regards the full year guidance, my impression is that your view has become somewhat a little weaker. I would like to hear more, because looking at second quarter performance by product, for instance, in the TBR area, it's not as though the performance was noticeably weaker. The same on the European operation in reference to other competitors operating in the same region, not so the weak. I would like to hear your thoughts further. Do you think that you can attain the, the forecast and the goal that you established by the end of the fiscal year? Or do you think that there are some possible scenarios which point to the deterioration of the, the business environment? How high is the hurdle ahead of you? I, Ishibashi, would like to respond to that question. The second quarter performance, the actual versus the plan. My observation is that. By the way, I would like to hand it over to Mr. Hishinuma. Thank you. I, Hishinuma, would like to answer that. Actual versus the plan. Vis-à-vis the internal plan, with the sole exception of the currency, more or less speaking, all other factors were more or less in line with the plans. By factor, the price that was the bigger positive than, than what we had anticipated. Raw materials, in actuality, did not increase in cost as much as we had anticipated. I can say that these two factors were, relatively speaking, positives. At the same time, volume, which is a negative. However, mindful of that, we were able to execute, particularly in Europe and the North American markets. The work rate is cost control and management. These are all the collective positive. The negative would be really the volume and the currency, and the currency was a sure plus because that pushed us forward in numbers. I, Ishibashi, would like to supplement a little bit, because you said what would be our expectation with respect to the FY, the full year guidance, which we did not change on this occasion. In the beginning of this fiscal year. I said in my, the summary and presentation, as I look back, my own view for the fiscal year, particularly and for Europe and North America, it was a little bit too optimistic. That started to affect our operations. For instance, in the production plants are there, making various preparations and arrangements, this so, that was affected. It's not just a matter of inventory, for instance, of the distribution inventory. Our own inventory that would be affected, which we need to optimize in the second half from the perspective of return on invested capital as well. That's very necessary. Our read is that into the second half of the fiscal year, demand will become more robust, and so we're counting on that. The issue of distribution level inventory is quite deep-rooted. We expect the demand to go up, but we have to make sure that we can get rid of the remaining goods and materials in our own inventory, which means that we need to have the finished goods sold in the market in order to have the resolution of the remaining inventory issue. If the speed of the recovery turns out there to be slower than what we once anticipate, then we have to accelerate the speed of the downward adjustments in production, which in turn will affect the conversion cost, which would need to go up. Everything is all tied together. Mindful of our competitors, I'm sure that competitors are each thinking of their own respective costs. Some, there would be more aggressive to sell, and others would take a different strategic position. We need to be able to respond successfully to that. There's always the set of positives and negatives. The business as always, and what the our situations are into the rest of the second half of the fiscal year, is that to adhere to the fiscal year-end targets. We will do all that we can do, be it plus or minus. Well, thank you very much for saying that, Mr. Ishibashi and Mr. Hishinuma. Let me check something. For the second half of this fiscal year, Europe and North America. My impression is that you seem to have concern for the Truck & Bus business in both of these regions. It seems that in North America, for the high rim diameter Tire Business, relative strengths seems to be there, and so the trend may be different between Europe and North America. I understand your question. This is Ishibashi speaking. Your read is correct. If you do compare the conditions at play in Europe on one hand, and North America on the other, Europe is more severe, be it the Truck & Bus Tire Business or the Passenger Car Tire business. That's for sure. Both are very, very competitive and rigorous to compete in. With a particular focus on high rim diameter tires, North America is the more resilient for us than in Europe, but we will make sure there to keep marginally consistent level of operation. Thank you. I understand. The second question has to do with Mid-Term Business Plans, but it's not really mid-term, because I'm referring to the next fiscal year. What do you think, would be the sources of growth or the good performance, because microeconomy and the effects market, and those are outside of, under the control of anyone. Setting those externalities aside, for your Tire Business, for instance, do you think that ENLITEN can penetrate further into replacement market, which may positively trend under the mood of the market, lead to your favor? What about BCMA, do you think, the good effects will come about? Thank you. Tire Business is our core, whereas Solutions business is a growing business. That is, our continuing view. In this year's forecast, rather than banking on the growth of the Premium Tire Business, it's in the Retread operation and also the Retail business, and the more robust growth is anticipated. In terms of the available growth and tire-centric solution, the key point there is the Retread operation and Retail, and of course, solution network. That is where we are meant to make investments, as I presented. We will enhance our enabling the capabilities to make sure that collectively, all of those will support to be the big period of growth for us. On top of that, mobility tech, that's still at the preliminary phase of saving seeds, sowing seeds for the future. It's going to be basically in North America, but not actual contributions in the period of the 2024 Mid-Term Business Plan. It's for the 2027 round of the Mid-Term Business Plans. I'm looking forward to that. The key point for the 2024 Mid-Term Business Plan, what I said, is that the growth opportunities with Retread in the end or Retail operations or the establishment fostering code solution network, as a matter of course. Our core is a set of premium tire, the, the models and brands. How to surely and reliably make and sell, to what extent, and we can do that, is the point that we should focus on. Which means a very meticulous review of operations and opportunities by area, one by one, is necessary. For the making as well, are we going to do it in particular area or not? If our answer is no, not that we continue it, then are we going to discontinue altogether, the local production? Are we going to make efforts to make it better? What's good is to be made better, and what's not as good is to be either made better to make it good or then to retreat or withdraw from those local operations, from manufacturing in particular. All of this is in the matter of course, and ordinary course of business, but that is what it boils down to, so that what we've broken through as future opportunities will have their respective courses and directions becoming much more visible and better and optimal use of resources as well. That the manufacturing, that the products, including but limiting to ENLITEN, they will be there. That's the grand rule of our business. How we can do that is the 2024, the MBP, under value creation. ENLITEN, yes, we are starting to have the declare our plans. BCMA, of course, we are working that. However, to make it more visible, what will be the available value of BCMA and the value creation, that has to start with Genbutsu-Genba. Meaning that each and every plant is going through its own respective production plans, keeping those opportunities in mind, so that value creation can be maximized by plant. Everyone is working so hard, and I'm counting on that. I'm sure that as we do that, we'll be able to have the good success with BCMA. What we will be able to do in the three months period, it all depends. The sense of speed and agility is very important, but 2024 MBP, we are working on that. To what extent we can make progress is you, the one to look to. ENLITEN, the pricing has been increased. For instance, Turanza EV, 5% on the price increase, and so keep the challenging come those opportunities. MasterCore, the mining tire, 5% on the price increase as well. Price increase, by the way, is not executed because raw material input costs increase. Rather, it's because we believe in the greater value of those products, and that we would decide to increase the, well, the price, the pricing. Willing to pay. We can have bigger willingness to come from the market. It's not a home run hitter, sort of a play, analogous to baseball playing. It's much more the gradual and one by one, nothing grandiose. Thank you, Mr. Maki. That is it with SMBC Nikko Securities, Mr. Maki. Next, I would like to ask Mr. Sakamaki from Daiwa Securities. Thank you. This is Sakamaki. Can you hear me all right? Yes, I can hear you well. I would like to ask about the Mid-Term Business Plan. I am sorry to ask you once more about the BCMA, which was already explained by Mr. Ishibashi. Let me make sure that my understanding is correct. It is reflected to the material on about page 11. If you are going to be sharing models, I was thinking that on the factory floor or at Genba, it will be much easier to install, for example, VMI automatic molding machine and so on. That those in Europe and Americas who are not as flexible or their costs are increasing, will be able to reduce costs by automating. Rather, you're saying that in Europe and U.S., you will enhance flexibility by doing so? I was wondering what would happen at the real plan. Also for those process, you probably do have some experimental introduction to obtain results. I wonder what you might have already seen as a cost reduction impact on plant-by-plant basis. Well, first of all, plants in the West, those in Europe and Americas, they are basically smarter compared to Japan and Asia. In a way, the machines work hard and do a pretty good job of manufacturing. Therefore, they are good plants with high productivity, making lots of large lots, easy-to-make products. However, in the future, we will focus more and more on the so-called premium products. This will lead to the emergence of more and more difficult products to produce. Not products that are easy to make, but products that are more difficult to make. In addition, a number of small lot diversified products will also increase. This will be the starting point for us to deal with. It would be great if plants are like the ones in Japan and Asia, with on-site capability, where everyone worked really hard and made good preparations and arrangement to produce difficult products in small lots. In Europe and in the United States, that is not possible. If we proceed with more premiumization, simply put, without any measure taken, productivity will drop and the production volume decreases. We have to start with the basic premise that is a little different. In Japan, capability for changeover is high, and we have a high on-site capability for small lot production. If BCMA method is introduced in such a place, things will be easier and smoother, including the changeover. The preparation and arrangements will also become easier to make. Because we can start with high capability, we believe this will directly lead to business cost reductions. Production volume will not drop there, and improvements further can be made and expected. However, in the case of Europe and Americas, if you don't do anything, production volume will drop and the cost goes up and productivity declines. First of all, since premiumization is also the aim in Europe and the Americas. The challenge is to increase flexibility, and now we are working on that. For example, at the Burgos plant in Europe and at some plants in the United States. Various trials are being carried out in these areas. We must first determine how we can improve the flexibility, including the ability for changeover. We have made preparatory arrangements as to how far we can proceed with various approaches, including, sometimes referencing, to the Japanese know-how. BCMA should be done in this kind of basis. In essence, mere introduction of BCMA may just be enough to offset the decline in the overall capability or capacity. In other words, it will only be to reduce the drop and will not really bring out added results. In terms of how we are going to be able to get the real results, we are challenging each of the things I've just mentioned. Of course, we have to change all the production plans as well. We have to consolidate the products that are tailored to certain modules in each plant. Therefore, the hurdles seems to be higher in Europe and Americas, as we need to improve on-site capabilities while carrying out such detailed work. This is not to say that the hurdles are lower in Japan and Asia, but they have on-site capability at Genba, and they do production planning in precise and detailed manner. I was able to see how production planning is done recently. Everyone carefully goes over the production plan, and let's say, finds out that there are products A and B in certain plant. If it happens that A and B are not sharing the same module, B could be moved to another plant where modules can be shared. This is a kind of natural thought process that is being followed, and they do this for each, one by one, in order to get the results. While we are now undertaking this, we have to think about how each plant will be able to perform and get results. How much investment to make, how far will we raise the on-site strength, and how much the workload will be reduced for the people at each of the plant. We need to make forecasts in various areas and visualize the benefits for each. How much of this can be included in the Mid-Term Business Plan? I think that at the beginning, it would be reflected more or less on a conservative side. It will be an effort of improvement, and it will be carried out centering around the Genba, based on the continuous learning for further improvement. Since this is a major change in the approaches to production, it cannot be done all at once, but it will require a very steady and continuous Kaizen activities. Because we, the Japanese, are versed in such an approach, I am hoping that we will be able to even change the corporate structure through this process. These will be the kind of challenges I would like to make, and for that, we are obviously experiencing and testing them in Asia and in other areas to see what various effects and impacts of BCMA may be. From my point of view, at this stage, results are only the size of peanuts, but even peanuts are better than nothing or zero. I am thankful that there are results, but of course, peanuts alone is not sufficient, and we have to think of the ways to create more value out of this. That's the challenge. While thankful for the results so far, which is only peanuts, but we are and will be building on the results one by one, which is true for the Burgos and others. We are making it more and more visible now. That is why I'm telling the people in finance that they should not sit back at the head office in Kyobashi, but needs to actually go out to the site to work together with the people there. Otherwise, they will not be able to understand what is going on. In this respect, I believe that this is an opportunity made to make a major change in the power of manufacturing on-site. I believe those in Europe and Americas also do have things they can do on-site and make this an opportunity. In that sense, including the change in awareness, this will be a major milestone for Bridgestone. Well, I sort of understand. What are the effects of this? Well, it is a little difficult to say, but I would like to say that this is going to bring in a very big bang forward or a major advance. For now, it's still small, peanuts, so it's still a little early to say. I just wanted to confirm whether you have an image for now, such as the effect is something like the increase of profit margin by 1% or 2%, or something like that, that I see on page 10. Maybe the company-wide positive impact of 1.2% improvement in the profit margin that is spreading rapidly. Well, obviously, I have my expectations for everyone. I say, "This is what I want to say, I want to see, for example, X%." Then people say, "What?" Seem surprised. I say, "I am looking for more than what we are experiencing, peanuts." As mentioned earlier, I say what we can raise, in terms of the growth margin by this, can come from the top line with ENLITEN, and then there is the raise of gross margin, through the business cost reduction. The sum will add up. The next stage of earning power is, although not written out, I do have the numbers in the table. When I develop them, it's right in there. I have not included them because I don't want to make an over-commitment at this point by showing them to you. In any case, the question is how we can raise or lower the numbers to reflect in the gross margin in this way. This is the key to the success of 2024 Mid-Term Business Plan, which will come in six months. Secondly, I think one of the updates is that you have decided a number of things in what not to do. In particular, it seems to me that there are many things in Europe that you have decided not to do. I wonder if these are actually things that you have decided not to do, which are causing losses and dragging down profitability, and that, that would increase profitability simply by deciding not to do them, and also by not doing things among the list of not to-do items. How much profit would you be expecting to generate, or how much immediate impact will you be seeing? Regarding the European business, we discussed it separately at the Global Executive Committee meeting in June. I believe that the weakness of the management foundation of the European business is a management challenge that we confront. As I have said before, we will not give up on the European business. I believe Europe is a very important market, and we would like to somehow move on to the next stage. From about 2015 to 2019, the operating profit of the European business was about 1%-2%. Since about 2020 and onwards, with the restructuring of Bethune and improvement of the product power and competitiveness, along with the price increase, it increased to the level of about 4%-5%. But of course, it is not sufficient from the standpoint of ROIC. Therefore, we need to go one step further in the 2024 Mid-Term Business Plan. We are now discussing these issues together, and we will, of course, work to increase gross margins in the terms of the top line, including ENLITEN and of course, including BCMA, which I mentioned earlier, including the production sites. We will also keep a close eye on this loss-making business, including those in the what not to do list now, to move on to the next level. We are now discussing how far we can go in terms of the specifics as a major point of the upcoming Mid-Term Business Plan. Thank you very much. Yes, we are confronted with a long journey. Yes, I can see that. Thank you very much. I have lots of hopes in you. Thank you very much, Mr. Sakamaki. Mr. Kakiuchi of Morgan Stanley Securities. This is Kakiuchi from Morgan Stanley Securities. Thank you for this opportunity. My first question: in your presentation of the Q2 results, which you kindly covered in detail, you said that regarding the current weakness in replacement tires, particularly for Truck & Bus, you ascribed it to the economic slowdown, and you provided some details. Mr. Ishibashi, you acknowledged that your initial assumption, in retrospect, was too optimistic. Do you see factors other than economic slowdown in play as well? For example, in this slide, in the current post-COVID landscape, perhaps you feel that 2021 or 2022 was too strong, that end customers bought too aggressively, you are now seeing a rebound, or perhaps some changes in the way tires are used. Are there any such factors as well? I suppose with the simple impact of economic slowdown, you can make prediction to a certain extent. I'm wondering if you see changes in distribution inventory or in the way fleet customers, logistic customers, hold their inventory. Are there such specific factors in play as well? First, regarding Truck & Bus T ires. As you can see in this slide, during the COVID pandemic in 2020, from around the summer of 2020, in the U.S., through economic stimulus packages and others, there was quite a bit of movement in goods. I recall saying at that time that the movement of people stopped, but movement of goods was very active. In that sense, demand in the U.S., primarily for Truck & Bus T ires, rapidly recovered, and demand rose sharply in 2021 and 2022. In the face of such rapid increase, starting around the second half of 2022, the production capacity of first-tier tire manufacturers could not catch up, so TB tires from second-tier and third-tier players made their ways into dealers, resulting in inventory buildup. In general, when demand rises rapidly like this, everyone says, "Not enough supply, nothing available," so dealers would buy up a lot. There's a tendency to order more under the inflated sales projection and place orders believing they can sell. Thus, the dealer's inventory expands, and there are many second and third-tier products included in it. The actual demand drops rapidly. Currently, in the U.S., as you are aware, the movement of goods has slowed down, while the movement of people is now starting to pick up. When there is a movement of people, that will contribute to the Passenger Car Tires, but when movement of goods slows down, then the dealers will start squeezing their inventory level. In many ways, when it goes up, the sales prospects go up, and when it goes down, there will be inventory cutbacks, no orders being placed. Although when changes are so rapid, it becomes really difficult to predict. Now, dealers know that manufacturers have built up inventory, and so when they need more, they will be delivered right away. When there's no stock, you need to order way in advance. That's a typical behavior of dealers. I think those things have a lot to do with what's happening today. Until this post-COVID anomaly really subsides, I'm afraid there will be rampant ups and downs like this. The movement of goods is slowing down, the activities of national fleets, large fleets, are also slowing down, there's no doubt that the actual demand is dropping. That, added with the ups and downs of dealers' inventory, the behavior during the declining demand, as well as the fact that the second and third-tier brands are now entering the dealers, and these players are benefiting from the ocean freight returning to their normal level. We are now seeing the combined effects of all these factors. We will stick to the fleet business that focuses on the premium tire, combined with retread, and provide solutions such as Fleet Care. We will not change the direction of this main thrust. We will do this in a steady and steadfast manner. Still, it is true that we are affected by the rapid ups and downs in this post-COVID era. So the question is how far we can stick to this. While maintaining a solid business structure, we must stay away from doing anything unreasonable. We will endeavor in our business so that customers acknowledge and truly appreciate our value. Now, that's for Bridgestone brand. The Firestone brand is a dealer brand, so we will respond a little more flexibly. The actual demand in the national fleet is already dropping, so we should do something that contributes to overall cost reduction, such as retreading. That's the sure way. We will execute these firmly and steadily. I apologize for not being more precise and articulated. No, no problem. You said that your company's inventory is high, true? Yes, it's manufacturer stock. I see. The manufacturer inventory. The distribution inventory and dealer inventory, these are high, and our own manufacturer's inventory is also high in the first half, and in the second half, we will reduce manufacturer inventory. If the economy recovers and demand recovers, it will be very easy to do so. If it slows down, the operating rate of the factory will naturally decrease, so it'll be tough, but we will do it even if it gets tougher. I see. Thank you. My second question: In your presentation, you said that for Turanza EV, the tire for EV, you will seek to improve price positions. In your conversation with the OEMs and retailers, the voices that you hear from them, I'm sure they reflect the general users, the end user's voice. Do you see a positive reaction from those end users as well? As you know, California is leading the U.S. in terms of the shift to EV, and they have a keen interest in sustainability, and people drive a very long distance. Historically, people in California have keen interest, a very strong demand on the product life. In that sense, we have launched product that has a significantly longer life, while also considering sustainability. Costs are high, but prices are set high as well. To be more specific, there are many customers of Tesla, and many customers are actually concerned about the life of Tesla's current tires. Although it's only been several months since we launched in May, we are already getting such feedback from our customers. Of course, I have no intention of criticizing the OEMs, and since OE manufacturers are making tires for new vehicles that meet their respective requirements, that is that. However, for the aftermarket or the replacement tires, this is not a B2B business, but B2C business. Providing products that meet the needs and wants of the end customers, as well as products that inspire them and expand the business proactively, that's the nature of the business. In that sense, replacement products have aspects that are slightly different from OE products. In Europe, OE and replacement tires are generally the same. Whereas in the case of Japan, OE products and replacement aftermarket products are generally different, and the U.S. is in the middle. In the case of U.S., we are doing things like launching our own replacement tires, while of course, for some, the same as OE tires, but expand the size range. That's the kind of things that we are doing, taking into consideration the characteristics of each region. I see. Thank you. From here, due to the time constraint, we will only take one question per person. Next questioner is Mr. Sakaguchi from Mizuho Securities. This is Sakaguchi from Mizuho Securities. One question, a question on the selling price. According to Mr. Hishinuma's commentary earlier, during the first half, the selling price was a positive factor compared to the plan. I believe, this is the result of your solid execution of the premium strategy in the midst of a severe market environment. Could you state, your view on the selling price during the first half? Also, what's the projection for the second half? Now, there are signs of slight improvement. The market environment remains severe, particularly in North America and Europe. Costs such as raw materials and ocean freight rates are declining, and I'm worried that low-end manufacturers might take a lead in embarking on price reduction campaign. I'm fully aware that Bridgestone has no intention of changing its strategy or stance, but can you talk about the risk of this positive aspect of selling price shrinking or turning into negative in the second half? I take it that you're asking about the spread between selling prices and raw materials. The spread we showed in the full year plan in February, we believe can be kept. Currently, we do not assume that there will be a narrowing of price spread at this point in time. However, as I said earlier, regarding the selling price, it is a matter of how to balance the sales mix, selling price, and volume, the quantity. In that sense, the selling price is our asset, so we don't want to give it up easily. Within that balance, what's the appropriate level in each region for the second half is something we need to judge based on many different factors. During the first half of the year, we did various things, such as keeping up the selling price level while reducing the volume within that balance of three factors that I mentioned. I want everything to improve: selling price, sales mix, and volume. That position remains unchanged. How do you do that in each region, area? That's the competence of the top management of each SBU. In our monthly meetings, we are discussing how to manage all these in the second half, and that's where the competence counts, not on the strategic level, but on the operational level. Now, the annual forecast seems keeping the sales price to a certain extent because it's really an asset, and we are considering the volume, the balance. Now, as you say, ocean freight. The benefits of ocean freight normalizing are very large for low-end manufacturers. I am well aware that accordingly, the competitive terms and conditions will change. We have an option of not moving along with them, stay away from that, or anticipate that we might be dragged along to a certain extent. The Firestone brand might be dragged along to a certain extent, so make adjustments to a certain extent. I think we can ride this through by mix and matching various options. I see. Thank you. Thank you, Mr. Sakaguchi. With this, we conclude the Q&A session. With this, we end the Mid-Term Business Plan 2024-2026 Planning Process Update 2. Thank you for your participation. Thank you.