I would like to thank all of you for coming to Bridgestone's financial results presentation for 2023. First, I would like to introduce to you the participating members. We have Global CEO, Representative Executive Officer, Shu Ishibashi. Mr. Masahiro Higashi, Global CAO. Shida Yoshikazu, Global CCO. Naoki Hishinuma, Global CFO and Executive Director of Global Finance. These four members will participate from our side. I would like to, first of all, invite Mr. Shu Ishibashi, Global CEO and Representative Executive Officer, to present the summary of financial results for 2023, including review of Mid-Term Business Plan '21 to '23, as well as business plans for 2024. Hello, everyone. I am Shu Ishibashi, Global CEO. First, I would like to explain the financial results for 2023 and provide review of '21 MBP and business plans for 2024. 2023 was the final year of the '21 MBP, which was announced in February 2021. Our goal was to become a strong Bridgestone capable of adapting to change. Looking ahead to our next three-year plan, the '24 MBP, we have been driving initiatives to lay foundation for premium enhancement and its evolution with the solutions business. However, last year, there was significant decline in truck and bus tires for replacement, mainly in North America, Europe, and in China, and we were unable to sufficiently adapt to the change. In particular, accuracy in demand sales forecast in North America and Europe, as well as weak business and channel foundations in Europe, which were exposed by the challenging business environment, remain as issues. We consider monitoring signals to respond to change, as in the case of the sharp devaluation of currency in Argentina, which negatively impacted our financial results as new issue. As we have not yet returned to a strong Bridgestone capable of adapting to change, our top priority in 2024 is to improve and reinforce business quality. On the other hand, we have been reinforcing our structure to produce and sell premium tires throughout the '21 MBP, and we have completed laying the foundation for premium enhancement. Linkage with the solutions business was partially achieved, having firmly confirmed and clarified what to do and what not to do. Unfortunately, financial results for 2023 landed below our full year forecast announced in February of 2023. Compared to the 2023 targets in the '21 MBP, which was announced in February of 2021, with tailwinds for currency exchange, revenue, adjusted operating profit, and net profit amounts, as well as planned dividend, all exceeded targets. However, ROIC, our most important KPI, fell below target, leaving an issue in improvement of business quality. I will explain details of the results. Our revenue was approximately JPY 4 trillion, 300 billion. Although the sales volume decline due to significant demand decline for TBR replacement tires in North America and Europe was large negative factor, we secured increased revenue versus previous year by achieving sales mix improvements through expanded sales of premium PS replacement tires, sales expansion of ultra large and large OR tires, and with tailwind from currency exchange. The revenue portion of the solutions business, excluding retail tires, achieved our target of 20%. Adjusted operating profit was approximately JPY 480 billion and adjusted operating profit margin was 11.1%. In addition to negative impacts on production costs from the raw material prices, energy cost, and rising labor cost, conversion cost increased from deterioration in plant capacity utilization reflecting sales decline, mainly for TB in North America and Europe, and decline in Asian and Japanese exports. We covered this through improvements in price and sales mix, thorough expense management, and on-site productivity improvements in production. With Argentina's hyperinflationary accounting negatively impacting profits by approximately JPY 10 billion, profit decreased versus previous year. Excluding this impact, we increased profit from previous year. Net profit was 107% of previous year, an increase of JPY 21.5 billion. ROIC, our most important management index, was 8.7% and did not reach our target of 10%. We are planning dividends to be JPY 200 per share and will continue to improve on this. The situation in Argentina, which continues to change, in December 2023, we set up a countermeasure project, which includes the management team in Americas, as well as the finance teams at the global headquarters, and are reinforcing signal monitoring and countermeasures against change. The TB replacement tire business became a large negative factor in the 2023 financial results. In North America, demand was 82% of previous year, while sales was 86%. Even in the challenging environment, we were able to achieve market share increase based on our strong business foundation. In Europe, demand was less than 80% of prior year, and sales were 70%. In this challenging environment, we were unable to balance price and quantity. Weak channel foundation along with weak customer base were exposed, and we lost market share. Accuracy in both demand forecast and sales forecast responding to change remains an issue, and we will work towards improving management quality as well as business and management quality. Global sales was 85% of prior year, impacted by the sales decline in North America and Europe, and ensuring a focus on premium rather than pursuing overall sales volume, such as reduction of unprofitable business. As for PS replacement tires, in North America, sell-out demand gradually recovered from the second quarter, and distribution inventory adjustment was completed by the end of first half. Although demand recovery continued in the second half, sell-in demand was slightly below previous year for the year. In Europe, total sell-in demand was approximately 90% of prior year, impacted also by the slow winter tire sell-out in the second half. Reflecting this, distribution inventory adjustment is expected to take until the first quarter of 2024. In such an environment, we ensured our focus on premium rather than pursuing market share for overall PS tires sales in both North America and Europe. Also, in Japan and in Asia, we drove premium enhancement, such as reducing sales of low rim diameter tires. Our global sales volume was approximately 90% of the prior year. Despite the overall demand not growing, demand for high rim diameter tires was solid except in Europe. In North America, we expanded sales and maintained our market share from prior year. In Europe, although demand slightly increased from prior year, weakness in channel foundations, which is our issue, was exposed, leading to a decline in market share. Globally, sales grew to 100% of this year, supporting our performance. I will now explain financial results by segments. In Japan and in China, Asia Pacific segments, both revenue and profits increased year on year. In Japan, we thoroughly focused on premium for the replacement tire business while a challenging environment continued for the OE business. Reflecting the significant increase in sales of Off-the-Road tires for mining vehicle, as well as solid exports, both overall revenue and profit increased from last year. In Asia region, we advanced improvement of sales mix through a focus on premium. In Americas and Europe, Russia, Middle East, India, and Africa segment, although we increased revenue, we saw an inability to respond to change, especially largely impacted by the significant sales volume decline in TBR and conversion cost deterioration due to the required production adjustment. In response, profit decreased. Especially in Europe, weakness in management and business foundation was exposed. Next, I will review our 21MBP activities. First, regarding rebuilding earning power. Along with the plan, we executed restructuring of tire plants and internal manufacturing sites and business portfolio of the diversified products business. With regards to manufacturing sites, we have restructured approximately 50 sites. Although we do not expect restructuring to be as much or large as in 24MBP compared to 21MBP, we plan to initiate the second stage of restructuring and rebuilding in order to focus on premium. As for expense and cost structure reformation, as well as we reduced fixed cost by approximately JPY 20 billion in the 21MBP through promoting initiatives such as consolidating offices in Japan, improving business productivity and efficiency globally, focusing on structure reformation of fixed cost. Variable cost also help maintain competitive variable cost ratio by executing optimization of logistic cost and unit price, and improving efficiency in logistics despite the impact of inflation. In the 21MBP, we promoted management focusing on capital cost based on ROIC, our most important management index. In Bridgestone's own way, we are propagating the concept of ROIC to the Gemba level, valuing Genbutsu Genba. Also, to firmly manage investments and strategic resources, we established global M&A executive meeting, where major projects are discussed with the global management team and the structure to evaluate the certainty of investment return based on ROIC. We will continue to strengthen the global controlling function in order to conduct periodic follow-up reviews and PDCA cycle. We believe the activities themselves were good, but as for the results, we could not achieve the target of 10% of ROIC, which means insufficient earning power and ability to respond to changes. Although the gross profit, OpEx ratio, and fixed asset turnover improved, cash conversion cycle deteriorated due to the factors such as increased year-end inventories resulting from lack of management to cope with declining demand in North America and Europe, et cetera. In terms of ROIC as well, not only strengthening earning power, but also improving management and working business quality is an urgent issue. Next, on establishing a foundation for premium enhancement. Mainly in 2023, despite the challenging environment, we thoroughly selected and executed investments in reinforcing production to drive premium enhancement. During the 21MBP, we invested a total of approximately JPY 160 billion. For passenger car tires, we replaced manufacturing equipment in order to manufacture high rim diameter tires and ENLITEN products, and also made investments for production enhancement. In OR, we enforced in the production to manufacture our Dan-Totsu product, MasterCore. For trucking bus tires, we started reinforcement of our Thailand plant, our global supply source, as well as our plant in the U.S. However, based on recent demand and sales declined, we are adjusting investment timing and speed. To reinforce our foundation for linkage with the solutions business, we invested approximately JPY 150 billion of strategic resources. In addition to the reinforcement and enhancement of retail and service, retread and mining solutions, in 2021, we acquired Azuga, a digital fleet solutions provider in the U.S., laying the foundation to establish our mobility tech business in North America. We are also gradually investing resources to adapt to the needs of new mobility, such as for the development of digital tire sensors. Regarding laying the foundation for premium enhancement, we are close to completion. Throughout the 21MBP, we captured most of demand increase and achieved sales expansion of high rim diameter tires. Even under the challenging business environment in 2023, focusing on the premium on the passenger car tire segment contributed to the improvement of sales mix and supported the group's performance. We were connected to our growth from 2024 onwards, including the taking in replacement tire recurring demand from OE tires. In addition, we established foundation for premium focus in each region, including strengthening sales of premium tire brand. The sales proportion of premium tires in 2023 was 57%, and it will continue to grow in 2024 as well. The core of passenger car premium tire is to introduce products equipped with ENLITEN. We launched four products in 2023 in North America and Europe, such as Turanza EV specialized tire in North America, and Turanza 6 in Europe, as you see on this page. We will continue to create social value and customer value by launching new products customized to each market and sharpen edge in Japan, Asia, and other regions. Another core of premium tire is to expand MasterCore, our Dan-Totsu product, and sales of mining tires. Under the challenging business environment, we achieved increase in sales volume and improvement of market share as the business which supports the group's performance. We will continue to strengthen it, establishing the foundation to enhance mining solutions. Regarding evolution of the solutions business that we achieved partially, we clarified what to do and what not to do back in June 2023. What to do is to focus on the reinforced solutions which amplify value of premium tires. We enforced to promote retail and service and commercial B2B solutions. In terms of retail and service, we began initiatives to reinforce retail services sites in North America and Japan. For commercial solutions, we enhanced retread in North America and Japan, as well as mining and aviation solutions, and established Fleet Care concept centered around North America. We will continue further enhancement. To clarify what not to do, we determined loss-making and unprofitable projects one by one. Consumer solutions, such as Mobox, was determined to be a failure due to challenges with the business model, and as a result, we decided to discontinue it. Also, for retread in Europe, which is unprofitable business, we will promote rebuilding with limited customers. Likewise, for retread in Asia, we will make improvements with limited areas and customers. Regarding retail and service, we drove initiatives to strengthen and improve steadily in the United States. Leveraging 2,200 entity stores, which served as growth enabler for the premium tire business, we realized enhancement of service and improvement of business quality. In 2023, its profitability improved as a standalone business as well. In 2024, we will promote further strengthening and expansion, including the challenge for a new store format. We also continued to reinforce tread in North America and Japan. In North America, we achieved sales expansion and market share increase of retread based on the strong business foundation, even under the challenging business environment. In Japan, we reinforced and expanded TPP, which is a solution that integrates retread and maintenance. As a market leader, we will create demand for retread and contribute to sustainability. Here is the 2023 performance by business portfolio, which reflect our execution and results, including the initiatives I mentioned so far. As for revenue portion, the premium tire business accounted for slightly more than 60%. The solutions business, including retail tire, accounted for approximately 30%, and the diversified products business accounted for 7%. As we explained at the beginning, the premium tire business resulted higher revenue and lower profits versus the prior year, but the solutions business saw growth versus prior year due to strong retread in the U.S. The performance of diversified products business also steadily improved, although there is still more to do. Next, I will explain the business plan for 2024, the first year of the 24MBP. We will respond to both remaining issues from the 21MBP, as well as respond to new issues for 2024. Making the return to a strong Bridgestone capable of adapting to change our number one priority, we will focus on the following three points: reinforcing business structure globally, the second stage of restructuring and rebuilding, and further focus on value creation or the creation of new premium. In the 24MBP, the plan for 2024 is positioned as a period in which we will have a clear idea on resolving remaining issues from the 21MBP as well as new issues, and in which we will build the foundation to drive transformation in 2025 and 2026 as the true next stage, the original intention for the 24MBP. Our three axes for management: tackle past negative legacy squarely without delay, focus on execution and delivering results for immediate issues, and lay foundation for future growth will not change. To reinforce business quality, which is our most important issue, we believe it is essential to reaffirm and re-penetrate the Bridgestone DNA on site, the Gemba, and at a global level. Bridgestone received the Deming Application Prize in 1968 for the first time in the tire industry. Aiming to earn the prize, the company established the Deming Plan in the 1960s. Based on the basic thought, good company quality makes good quality of products and services, and under the five concepts, PDCA, why-why analysis, standardization explained by using accurate data and controlling important points, we have continued to drive group-wide quality improvement initiatives. These are all strongly reflected in our mission, serving society with superior quality. I am determined to once again firmly penetrate this basic thought and activities within the global management team, and accomplish a Bridgestone-like improvement in management quality and business and working quality. To continue group-wide quality improvement, in addition to our basics of 3S, seiri, seiton, seiso, we also need to ensure seiketsu and shitsuke to maintain and make them a habit. Regarding business environment assumptions, which will be the premise for reinforcing earning power in 2024, economic trends, particularly in Europe, continue to be challenging. Even on a global level, high energy cost will continue, and labor cost will significantly increase. There is also a need to continue closely monitoring and responding to geopolitical risks, including tire demand forecast. Challenging conditions in the business environment is expected to continue for the first half, and slowly recover in the second half. As for TB replacement tire demand in North America and Europe, for which forecasting accuracy became an issue, in North America, the compound annual growth rate between 2018, before COVID-19, and 2023 was 101%. This shows moderate growth as a medium-term trend. Meanwhile, for Europe, the compound annual growth rate for the same period was 97%, and we do not expect a major recovery in the medium term. Now concerning demand and our sales of TB replacement tires for 2024. In North America, although distribution inventory adjustments will continue through the first quarter and demand will decline versus prior year, demand from then onwards is expected to recover and exceed the prior year by close to 10% for the year. Sales will also prove to be challenging in the first quarter, but increase for the year. We aim to slightly increase market share for new tires and expand our TB business, retread included. For Europe, major demand recovery from last year cannot be anticipated, and we expect about the same level. For our sales, we plan to launch new products and slightly increase market share, focusing on the premium segment. Based on the premise of promoting a focus on premium, such as reducing unprofitable sizes in Asia and Japan, we plan growth for global sales at 106% level versus the prior year. For passenger replacement tires, demand in North America is following a recovery trend having bottomed out in 2023, and we expect sales to also recover from last year. In Europe, challenging conditions will also continue for passenger, with slow sell-out demand recovery. Sell-in demand will also not recover significantly, and we expect the same level as the prior year. We will ensure a premium focus for sales, further reducing low profit business, such as the low rim diameter category. For passengers in total, we will reduce sales volume and decrease market share with intent. Factoring in demand growth in India, Southeast Asia, and other places, we plan increased sales versus prior year for global sales. Regarding PS high rim diameter tires, taking in the continuous demand growth globally, we plan on both sales expansion and market share increase. For sales in North America, we will increase market share based on Dantotsu products and new channel development. Even in Europe, where we lost market share in 2023, we plan market share increase based on Dantotsu products, expansion of sizes, refining the wholesale sales structure, and rebuilding of the retail business. We will also drive sales expansion in China and on global basis. Based on sales expansion and market share increase of premium tires, for our financial plan for fiscal 2024, we plan JPY 4.4 trillion level in revenue, increase to 103% compared to the prior year. Ensuring the reinforcement of earning power by driving both sales mix improvement and business cost reduction simultaneously, adjusted operating profit is planned to be JPY 530 billion level, 110% of prior year. We plan to return adjusted operating profit margin to our 2021 level of 12%. We are also aiming to return ROIC to more than 9% by making improvement efforts across the entire value chain. As for shareholders' return, we will continue to drive improvement and forecast a dividend of JPY 210 per share. In the 24MBP's true next stage, we will continue growth and further reinforce earning power. Our target is to achieve JPY 640 billion level in adjusted operating profit and 13% level in adjusted operating profit margin by 2026. For the premium tire business, we plan adjusted operating profit margin of over 14% in 2024, accomplishing turnaround from 2023 results. By 2026, we will reinforce earning power and aim for 16% level in adjusted operating profit margin. We will provide details during the 24MBP announcement scheduled for March 1st. Here is the overall view of plan by business portfolio. In the solutions business, we aim to achieve growth focused on retail and retread, targeting increase in revenue and profit versus prior year. In the diversified products business, we will also continue to improve the performance, sharply focusing on areas where Bridgestone's core competencies can be leveraged. Concerning specific initiatives for 2024, first of all, we will promote the expansion of Dantotsu products, ENLITEN, our new premium, as a starting point for all. REGNO GR-XIII, REPS, premium tire launched in last February, is the first product equipped with ENLITEN in Japan. In Europe, we launched the latest generation of long-haul TBR tire lineup, Ecopia, equipped with ENLITEN. In addition, in North America, we plan to launch a product equipped with ENLITEN for light trucks which responds to the last mile within this year. Regarding business cost down, we will create value by building new partnership with strategic partners, improving efficiency and reaping benefits from its scale merit. Promoting global supply chain management, logistic transformation and streamlining linked with BCMA, including inventory reduction, nearby production, et cetera. As for BCMA, base technology for manufacturing and R&D, which streamlines development and supply chain and reduces cost of development and manufacturing, we will create benefit at global four model plants. Also, we will work on the improvements of manufacturing cost through steady productivity improvements. BCMA, green and smart activity, and other details will be explained in the 24MBP presentation. For the second stage of restructuring and rebuilding, we will manage the overall European business as business unit under focused management and conduct elaborate PDCA cycle. We will improve management and working and business quality through introducing new talents and scheme, including dispatching talents from headquarters and establishing structure to reinforce on-site Gemba-to-Gemba activities. Regarding retail in Europe, support from U.S. retail team with strong business foundation started from October 2023, and we have begun to rebuild while confronting the challenges. We will continue to improve, aiming to become profitable from 2026. Linked to this, we will also restructure and streamline sales structure for wholesales. For TBR, we will further work on reducing unprofitable business and thoroughly strengthen sales for fleet and focus on premium. In terms of retread, we will rebuild in limited area and improve profitability. Other initiatives will be steadily promoted, such as reinforcement of premium focus in China business, rebuilding the Thailand business to return to Dan-totsu number one position, and restructuring channel in Japan to maintain and reinforce Dan-totsu number one position. The foundation of this business plan for 2024 is new glocal management structure that values Bridgestone's DNA, Genbutsu Genba. We divided the global region into 47 areas and clarified their roles and responsibilities as business units. We have initiated the structure that will enable us to respond to change promptly by thoroughly monitoring signals, visualizing issues, and conducting PDCA cycles. Finally, I will explain the resources to execute these plans. Capital investments, including strategic and ordinary investments, totaled JPY 420 billion in 2023, which was approximately 1.3 times versus 2022, and JPY 430 billion is planned for 2024. Of this amount, strategic investment will be at the level that exceeds JPY 160 billion in both 2023 and 2024, mainly in reinforcement of premium tires. Under the challenging business environment, we will continue to reinforce and enhance investments. R&D investment will be maintained at JPY 120 billion level, or nearly 3% of revenue. In addition, we will reinforce injection of R&D resources in the solutions business in the 24MBP. JPY 7 billion level of resources is planned for 2024. More details will be explained at the 24MBP presentation in March. Total strategic resource, including investment and expenses, amounted approximately JPY 250 billion in 2023. In 2024, from the perspective of certainty of investment returns and ROIC, we will further focus on injecting resources in the premium tire business and continue to reinforce it. Approximately 50% of the total strategic resource is planned to be for the premium tires. For the solutions business as well, we will invest resources mainly in retail and service and retread in North America and Japan. This is all regarding explanation of our plans for 2024. In 2024, we will drive our initiatives placing the highest priority on returning to a strong position capable of adapting to change. The overall review of the 24MBP will be explained at our IR day scheduled on March 1st. We appreciate your continued support, and thank you very much for your attention. Thank you very much. That was the midterm business plan summary for the previous three years, which ended in 2023, as well as the business plan for 2024 and the new midterm business plan. To continue, we would like to turn to Mr. Naoki Hishinuma, who is the Global CFO and Executive Director of Global Finance. Financial results for fiscal 2023 as well as the forecast. My name is Hishinuma, I would like to cover consolidated business performance in 2023 full year, as well as the consolidated mid-term projection for 2024. This is my agenda, I am going to start here, which shows the consolidated performance. Business and financial performance for fiscal 2023, JPY 4 trillion 313.8 billion increase over the prior year. However, the adjusted operating profit was JPY 490.6 billion, slightly down from the prior year. Sales decline as well as hyperinflationary accounting affected the results. To add a little more on hyperinflationary accounting from Argentina, it was back in December 2023 that the government of Argentina announced the more than 50% devaluation of Argentinian peso. Accompanying, which based on the IAS, the group retrospectively applied the fiscal year and currency rate to value and translate the peso from the beginning of the fiscal year. Looking at profit attributable to owners of the parent, which is JPY 331.3 billion, we take note that although in the prior year, we had loss factors such as impairment losses from business operating assets in Russia and the Bridgestone Cycle recall costs. Those losses became smaller in this fiscal year, the net profit in the current fiscal year saw 10% increase from the prior year. ROIC, 8.7%, 0.7 percentage point decline. As to B, the changes from the projection. This is the up in revenue, but the down in the profit. We recognize as the executive summary, the points which was made by our CEO, that lack of response to address changes has become apparent, and the goal of becoming a strong Bridgestone capable of adapting to change has to continue. Overview of the performance. Setting aside the sales by region, both for passenger car and light truck tires, the sales decline was witnessed. However, for the passenger car, high rim diameter tires above 18 inches and mining tires performed well. Four-year business environment. Currency exchange. Both USD and EUR appreciated against Japanese yen. Raw materials. The feedstock prices of raw materials declined versus prior year, due to the spike of energy, labor, and other costs of raw material supplies, as a result, the overall purchase cost of raw materials became almost the same level as the previous year. Tire demand. For the OE segment, although there were differences by region, tire demand continued to recover, increased the production level at the OEMs recovered by the improvement of semiconductors and tires. Replacement tires, especially decline in TBR demand versus prior year was severe in U.S. and North America. We do recognize that the global in total, the sales declined was there. For the new tire sales in the OE segment, this is the tire sales performance. There was a sign of recovery owing to the recovery of the OEM operations in the replacement segment, particularly the prolonged economic slowdown in Europe affected the sales outcome, which is pointing to the tone of decline. Warm winter pointed to the decline in winter tire demand in Japan. ORR, the ultra-large at 105%, large size at 104%, in particular, highly profitable, the mining tires continued to sell strongly. As a result of the continuation of the focus on the premium zone, passenger car above 18-inch high rim diameter performance stood out to be 108% of the prior year. Here is the consolidated financial results. Looking at the variance analysis, please take note that in order to make it more straightforward, we changed the classification from the prior year previous classification to the new one. In particular, whereas Argentina subsidiary and hyperinflationary accounting were affected. In all of the factors, we are showing these factors separately. Let us focus on the new classification. The negative input on inflationary energy and labor costs were offset and covered by the selling prices and mix improvements. Due to the slower demand, the sales volume impact was quite negative, which was not enough to be offset by the tailwind from the yen depreciations and the slight decline in the results. Before the hyperinflationary accounting, we would have seen JPY 8 billion increase in the adjusted operating income by segment. As remarked before, in Japan and China, Asia-Pacific regions, we saw up both on revenue and operating profits. In other segments, up in revenue but down in operating profits. Now, as to the full-year projection back in February 2023, it pointed due to lower adjusted operating profits other than in Japan. The consolidated financial results by product for the fiscal 2023. Passenger car and light truck tires backed by the yen depreciation, up in revenue and operating profits. Margin, owing to the volume decrease and changes in the composition between the OE and replacement segment, though that change pushed down the margin. The above 18-inch premium tire sales expansion supported the mixed up element. The margin erosion was kept at 0.4 percentage points. Truck and bus tires in North America and Europe, the sales of the tires decreased. Owing to the production adjustments, conversion cost risen. This saw down both in revenue and the adjusted operating profit. Margin also came down by 3.3 percentage points. Specialties. The sales performance improved increase product for the mining tires as well as the tailwind of yen appreciation. Up in revenue and operating profit. Margin improvement by 1.6 percentage points. Diversified product business in total increased in revenue and adjusted operating profit. Margin improved by 1.0 percentage points. The balance sheet and cash flow statement. Total assets was JPY 5,427.8 billion, up by JPY 465.6 billion, is affected mainly by the exchange factor. Equity ratio improved by two percentage points to 61.8%. Free cash flow, JPY 363.7 billion positive. Net income increased and the improvement in the operating capital conditions. Year on year, the improvement. Capital expenditure, even in the severe business environment, to continue to focus on laying foundation for the future growth so that the premium focus continued to enhance production. IT infrastructure investments continued, the capital expenditure in total was JPY 420 billion. As regards fiscal 2024, we forecast revenue of JPY 4 trillion 430 billion, up 3% from the previous year. Adjusted operating profit of JPY 530 billion, up 10% from the previous year. The adjusted operating income margin is expected to improve 0.8 points year-on-year to 12%. Net profit is projected to be JPY 359 billion, an increase of 8% from the previous year. The net profit includes approximately JPY 63 billion from the gain on sales of fixed assets announced today, which will be used to implement the second stage of restructuring and rebuilding in areas where remaining issues were identified in the 2021 MBP. ROIC and ROE are expected to improve from the previous year to 9.4% and 10.6% respectively. The assumptions underlying the forecast are shown here. We expect the business environment in general to be difficult, especially in the first quarter to the first half of the fiscal year. As for the exchange rate, we expect the yen to appreciate versus the previous year. For raw materials, both natural rubber and crude oil prices are expected to rise from 2023 levels, which will continue to be a factor in lowering profits. In terms of demand for tires for new vehicles, we expect demand to be generally on par with the previous year, although there will be some differences by region. In the replacement market, the recovery trend from the second half of 2023 is continuing, so we are forecasting moderate recovery with some regional differences. Demand for passenger car tires 18 inch and larger, PS HRD, is expected to continue to grow moderately, especially in the U.S. and Europe. This is our tire sales forecast for the full year of 2024. Sales of tires for passenger cars, light trucks, and trucks and buses are expected to increase year-on-year in the replacement market. In Europe, sales of passenger car tires for the replacement market are expected to decrease slightly from the previous year due to reductions in low profit areas. Sales of tires for mining use, Off-the-Road tires, are expected to remain firm at the same level as the previous year due to solid demand for minerals. In addition, sales of premium tires for passenger cars 18 inches and larger are expected to continue to grow steadily, with double-digit year-on-year sales growth projected for the full year. I will now explain the factors behind the year-on-year increase or decrease in the adjusted operating profit forecast. We expect an increase in sales volume and mix on the back of global sales growth of replacement tires and the expansion of premium tire sales. On the other hand, conversion costs are expected to deteriorate slightly from the previous year, taking into account cost increases due to continued inflation. As for operating expenses, in addition to the increase in variable costs due to higher sales, for fixed costs too, we have factored in the effects of wage increase and inflation. In this difficult business environment, we will strengthen our business structure and reinforce our earning power, and we forecast a JPY 64.4 billion increase in profit year-on-year, excluding exchange rate effects. Next, I will explain the projections by segment from 2024. We have partially changed the segmentation, transferring the India business to Asia, Pacific, India, and China. It will now be Europe, Middle East, and Africa segment. For the Japan segment, sales are expected to increase, but profits are expected to decrease, and the margin is expected to decrease by 2.2 points. In addition to the negative impact of the stronger yen assumptions compared to the previous year, the main factors are the decrease in profit in the new vehicle tire business, with its severe profitability, and the negative impact of index-linked prices of mining tires due to a shift in the period recognition. In other segments, we increase in both revenue and profit, as well as improvement in margins. To shareholder returns. The company's basic dividend policy is to strive for stable and continuous dividend increases through sustainable enhancement of corporate value with a target of consolidated payout ratio of 40% based on comprehensive evaluation of the medium-term earnings forecast, investment plans, cash flow, and other factors, in addition to the company's business performance and financial position for the relevant fiscal year. In accordance with this basic policy, we plan to pay a year-end dividend of JPY 100 per share for fiscal 2023, as announced in February 2023, for annual dividend of JPY 200 per share, an increase of JPY 25 from the previous year. For fiscal 2024, we plan to increase the dividend by JPY 10 from 2023 to JPY 210 per share for the full year. We will continue to strive to meet the expectations of our shareholders through stable and continuous increases in dividends linked to business performance. This is the end of my presentation. Thank you very much for your kind attention. We would like to ask 5 analysts that we have asked prior to this presentation to receive questions. To start with, I would like to ask Mr. Kakiuchi from Morgan Stanley Securities to begin, please Kakiuchi from Morgan Stanley Securities. Thank you. My first question. The capacity to respond to changes was not enough, is what you said. Rising of demand situations in Europe and other abrupt changes in the situations, how swiftly and ideally you were able to respond, and that's what you were referring to. The optimization, not only globally, but by region and local, and it's something that you have been pointing out from time to time. What do you need in order to enhance the capacity to respond? Is that the matter of the entire organization? Is it to do with the structure? Whatever particular aspects in order to become, once again, a strong Bridgestone once again. What do you think is needed? Yes, I did say that we were not sufficient enough not to be able to respond to changes. It has to do with the overall of the organization-wide, the character or the tendency that we have, or the fundamental strength even, which can be broken out into different elements. 47 business units that we have now after reorganization, which means that the distance between each of the 47 and the ground to operate on, it has become much closer, so that each manager and the persons responsible should be able to respond well. East versus West. The Eastern area region has been segmented very, very meticulously. When I speak of the capacity to respond as an organization, that's one key point, to be close to our customers, that is the Genbutsu Genba, so-called DNA of Bridgestone. That's the first point. Number 2, that is how needing the aware and being able to respond into what's taken note of on the management level. As we have 47 business units, those SBU heads have to recognize or have to feel that something is changing, something is amiss. What's the issue? That has to be noticed and acknowledged much more swiftly. The sensitivity to that, the incipient signs of change, this should be taken note of, among others. I talked about the sales projections, how the conditions were starting to change. If we were able to take note of the early, the initial signs of change, we should have been able to respond more effectively. We took too much time to get to the adjustments or the changes to the production plan. That came too late. That ended up with the very massive increase in conversion costs. The sales decrease, as well as conversion cost increase. It affected both the sales operations and the manufacturing operations. The managers in charge have to be able to take note of the earliest signs of change. Once we take note of the beginning signs of change, we would be much faster in trying to respond to that or to come up with the actions which can be taken. The awareness, the change. The supply chain management and the structural setup, structural framework can be adjusted so that you become much more meticulous. Not only production, not only sales, but supply chain as well, all have to be tied together much more closely. The third point that I would point out here is that as we have the overall framework and mechanism, I did refer to the people matters and the structural framework and the mechanism for another. What I next think is that how we went through the process of the demand projections, as well as the sales forecast and projections. That overall mechanism can be refined or have to be refined. By combining all of these three points that I believe I identified, we should be able to become a much better organization with more detail or much meticulous, much more sensitive, much heightened sensitivity to signs of change, and much more meticulous on the way of the acknowledging and then identifying, defining the initiatives that are to be taken. This is something which is not having to be focused only on the Japanese, not only on the non-Japanese, and all different tiers of the organization. All different regions, Japanese, the Europeans, and the North Americans, and different tiers of the organization, particularly on the management level. These all have to be done this year. That's the sense of issue that I have. The executive committee that we have, the global team, in February, we are going to have the meeting in Japan, in Kurume, Kyushu. That is where everyone is going to gather. This is where Bridgestone's operation first began, looking at factories that we have there, as well as the facilities. My expectations would be that the executives gathered there, they would have the firsthand opportunities to be able to take note of all the things going on, which hopefully will get to the better. My second question is Europe, which is in the West. The number of production units that are planned for this year, including India and Middle East, I believe is expected to decline. Is it that you are still trying to reduce the inventory on the manufacturer side? Also, in the Mid-Term Plan, you are going into the stage 2 of restructuring. The restructuring to be expected is not as large as the previous 3 years. But especially for TBR, the production capability, even if it returns to the earlier stage, we'll have some difficulty maintaining the level. Is there a possibility or some kind of reduction in the operations or production capabilities? As you know, we had Béthune in Europe, which was closed. At present, we are not thinking of a major closure of a plant. For each plant, a reduction in the production is being considered, especially for trucks and buses. Production reduction is considered. To meet that, there will be some reorganization within the plant. For the passenger low rim diameter tires, production reduction has started already. The major manufacturing site will not be closed, but from the start, there will be a plant management, including the reduction of the production level. That will be carried out in Europe starting this year, and this will improve the situation over last year. High rim diameter premium tires, they will obviously continue to be strengthened. Thank you very much. For this year, for the financial, Mr. Hishinuma explained, the cost, maybe impairment? In Europe, there will be some kind of measures taken this year, they will be actually accounted for in the P&L. I will like to take that up. As I mentioned earlier, there is no major restructuring reorganization considered. In Europe, there are things that I cannot talk about yet. In Europe, retail or retread, there is a production site there. They are being challenged. There would be some negative impact that we cannot avoid, to be honest with you. Thank you very much. Thank you, Mr. Kakiuchi. Next, I would like to ask Mr. Sakaguchi of Mizuho Securities. Thank you. I'm Sakaguchi of Mizuho. Thank you very much. I have two questions myself, too. In North America, TB inventory. Could you give us some more details in the third quarter results? Not only dealer, manufacturer's inventory had built up, they needed to be adjusted. Especially for the manufacturers, how have you been able to reduce the inventory? There is production and for the conversion cost, I believe that there seems to be some improvement in Americas. SSOP or maybe conversion cost seems to be a factor for reducing the reduction in the profit. What is the trend you are seeing in the first now? For last year, too, we had been working on the manufacturer as well as the dealer's inventory. We do need to reduce the inventory on the part of manufacturers, we had continued to work on this. In North America, for trucks and buses, there are local production and also there are imports from Japan and Asia. There are two parallel lines. In case of the imports from Asia and Japan, there has been a reduction, definitely. Local production adjustment has been carried out very severely, but the level of this adjustment may not have been sufficient. The reason for that is because our sales forecast has been at the core of the issue, and the actual number was much, much lower than what we had expected. The production reduction had to be actively implemented in advance, very widely. We did do that in North America too, but the sales had been lower than what we had forecasted, and the amount of the reduction has not been enough. There has been reduction in the imports from Asia. In that sense, at the end of last year, there was a lot of high-cost product inventory, and that is the present state of North America. This year, well, that's been shifted to the next year, and it's not a large inventory, but it is higher than we had expected. In the first quarter, naturally, we will have to follow this. For the first quarter, with regards to the dealer inventory, the major dealers see, I think, a big reduction in their inventory. The smaller and medium dealers still have inventory. It will take until the second quarter because of that. In January, our TB flash numbers, basically, our market share is going up, and as a whole, still the situation is quite severe. First quarter, yes, the severe situation will continue, but the manufacturer inventory will gradually come down, and then that will make it healthy, and we can maintain a balance. That's what we are doing. After the second quarter, I think it will be better. Last year, with regards to dealer inventory, well, compared to the usual dealer inventory, I would say that it was about JPY 1 million higher, and gradually, it is coming back to the normal state, and that will be reflected in the actual numbers. The selling demand is from 106 to 110. The higher than your normal inventory, if that comes down to the normal state, or if we keep this in consideration, then I would say it would be about 2%-3% higher than the previous year. That's the level that we are thinking about right now. Thank you very much. My second question. In 2024, by business portfolio, what is your forecast solution? You'll have increased revenue and increased profit with high profit. Retread will grow stably. Retail profitability improvement is, I think, a big factor, and as has been introduced from before, the background and how sure this is, what kind of measures are you taking for improvement? If you could explain that. Yes. Earlier, with regards to the directly managed stores in the U.S., there was an explanation. Can you show that? As you can see here, from 2021, on a continuous basis, I think we are seeing a good state. With customers and the direct operated stores in the U.S., 25% is tire sale, and 75% is maintenance service or car automobile care or maintenance of the automobile. This kind of maintenance work, demand can be exposed and service be provided. That's very important. As you see here, to increase the vehicle checks, and you have to have a deep relationship with customers in order to do that. In terms of maintenance service, for example, you can say in three months you have to replace this, or in half a year you have to replace this, that would raise customer retention, also raise the customer satisfaction. In that way, the retail side will improve. With retail, there could be more focus on premium products, the entire profitability would be raised. Gradually, that's how things are getting better. With regards to retail, in the Gemba in the field, I have a lot of trust in the top managers. With regards to retail, we will continue to input resources. We will also develop new formats in the U.S. It will start this year. Quality enhancement will be the next stage, and I think we are seeing better user experience. In other words, we are building up the foundation. In that sense, in North America, retail stores are maintained directly. I think it is getting better. The second point is that last year, or not just last year, but they have continued to have a large deficit. Retail in Europe, from spring to summer last year, we've had discussions about what to do. The team in the U.S. from October have entered the Gemba and they are working together. To what extent can you do the Kaizen and reduce the deficits? It's that kind of activity. With that, as a whole, the retail sector will improve. The other big retail market is Japan. In Japan we have new B-Select, which is a network building that started, and it is focused on the premium tires. Steadily, I think we should see an improvement. Therefore, within our solution, retail business itself, as discussed for MTP, will steadily improve. The global retail network, because it exists, the premium tires can see sales expansion. I think that is very solid. We call it enablers. With that, we have the customer touchpoints ourselves. We have our own stores, and we have partners who work together with us. With that combination, I think that we can go forward. Thank you. Thank you, Mr. Sakaguchi. Now turning to Mr. Maki from SMBC Nikko Securities. Maki from SMBC Nikko, thank you very much. Thank you. One question. About return, shareholder return. You said that over midterm, about 50% dividend ratio, it has been aimed for. Comparing from the prior year, this is what we see here, one percentage point improvement expected. I am sure that taking opportunities that you captured, that you continue to enhance the shareholder returns. I would like to hear your view on that once again. Also, that you have more than JPY 60 billion gains on sales of assets. Strategic investments, what I get as a sense is that most recently, maybe you are adjusting down the overall level or the magnitude of strategic investments. What is your thinking now, including the share buyback? At least for this fiscal year, what would you do? What will be your expectation in terms of shareholder return? Thank you. Well, I would like to ask our CFO to respond. Deployment of resources by 2030, there is the '23 Aspiration of the plan that we have. It's been coming down in terms of, rather than '23, the level expected. The new MTP, it points to slightly on the lower level of strategic investment. It's 1.5 times. We were thinking of doubling that, but given the most recent situations, needing to start only with investments in which are certain. About 1.5 times, that is my sense of the deployment of the strategic resources. As to the allocation of strategic resources, I'll go into details in the beginning of March. Return policy is that 40% in dividend ratio, it's something that we would like to preserve, that shareholder dividend. The initial business plans, if we continue in that respect, in that direction, that's exactly the amounts that you see here. Of course, with any upside that we can realize, we would consider a further return, more aggressive on the return to shareholders. Share buyback, our basic thinking is, of course, it's one option in the general definition of shareholder return. However, strategic investments, the balance between the buyback and the dividend payout. Everything has to be taken in a good balance. How much we spend for strategic investment purposes and how much with other means. Well, I hear what you said. There's certain area I have a sense that as you get even closer to the fiscal year-end, that you probably will continue to decide on what you can do more hopefully. Well, of course, we always aim higher. That is the spirit of this management. As we do so, if there are circumstances allow us to aim even higher, we may do that. Thank you. Thank you very much, Mr. Maki. From Citigroup Global Markets Japan, Mr. Yoshida, would you please? Yes. Thank you. My one question is as follows. In this fiscal year, JPY 530 billion, the adjusted operating company profit, what is the certainty of being able to accomplish that? How confident are you? For the past several years, you remained rather conservative, but you basically accomplished the target. I guess in order to aim for the certain level of the accuracy or the probability from the accomplishment you have had, you may have to become somewhat more conservative. What do you think? I would like your CFO to respond. Risk versus opportunities would mean that in terms of opportunities, starting in the second half, demand conditions will slope up. How quickly is it going to exceed our anticipation, then there would be no opportunities that we can identify. Conversely, risk would be that Latin American, the open economy, very volatile situations. We do have to keep that as a potential risk source. On top of that, this is Shuichi Ishibashi speaking. Opportunities would mean that with the sense of speed in taking actions, there should be opportunities for transformation or the transformation in Europe to reduce the losing businesses. What more we can do much more quickly so that at least we can be able to minimize the magnitude of losses in North America, and reach into the many areas, and driving the overall global performance of the entire group, how we can accelerate the speed there. This year, Asia, Southeast Asia and India, where last year the overall foundation and infrastructure became solidified. India is a growing market. Bridgestone is recognized as a top-running manufacturer in India. Other one that I have strong expectations towards Indian operations opportunities should be there. The risks would be, as spoken by Mr. Hishinuma, the instability in Latin America at large and also global OE business, that's the passenger OE business. Globally, severity there has been persisting. It's getting more and more severe, if any. That's a risk, uncertainty. That's it. Thank you. Thank you very much. Thank you, Mr. Yoshida. We will have the final person to ask question, and that will be Ms. Sakamaki of Daiwa Securities. Thank you very much. I would like to last ask a question. Up until now, before Mr. Ishibashi was a CEO, the sales were actually built up from the Gemba. There are fixed costs and the currency were actually added from the head office. Is this the way in which these were built? Last year, there is a sales and demand forecast, and I think the way in which they were formulated had changed since last year. Is it that your sales forecast is more conservative? The sales prices are going to be increased, but I think it is not easy to raise the prices. I believe that you had just mentioned that there will not be a major increase in demand. Would you be able to continue to use the same formula in building these forecasts, or is that the way that you are actually being conservative in doing so? First of all, regarding the top line, as I mentioned earlier, for passenger and for TB, we intend to expand sales. That is our plan. I don't know whether it's conservative or aggressive, but I believe that in Europe and in North America and in Southeast Asia, India and Japan, we have built up the numbers, and we have the reasons why we have been able to forecast that. Therefore, I think that they are realistic targets. At the bottom, there is improvements. Conversion cost had been very volatile last year. This year too, energy cost, or the labor cost, had stayed at a very high level, and as a result, they could be a negative factor. We make steady efforts to reduce the business cost. In the 2024 MBP, this will make a major contribution to global procurement and logistics-related ways. Retread, BCMA, in 2024 is only making smaller contribution, but as we move towards 2024 MBP, we will have more contribution in lean and smart, green and smart, and steady productivity improvement. They need to be planned well. For truck and buses in North America, if the demand comes back, there will be increase in sales. Even under the very challenging conditions in North America, the Dan-Totsu products that we are very good in, and the fleet business, and commercial dealer network, and retreads, which is our strength, and we have a very strong package. We have been able to maintain it. We did not destroy it. Therefore, even in this very difficult environment, we were able to improve the share. What we have been able to maintain and increase the share is something that will give us security. As the demand increases, I know that top line will increase for sure. This is true also for the OE and retreads. The passengers general, we will try to intentionally reduce it in Europe. But for the passenger premium, demand is strong. Therefore, we will have new products and new size in United States, Americas, Europe, and in Asia. We will launch many products. For the channels too, although in Europe it is not strong, we will improve it. In North America, as I mentioned earlier, we will try to develop new partners. We will have independent partners. As I mentioned earlier, there are major retailers, large ones, throughout the U.S. We, as Bridgestone, if we secure a stop, we can actually make it very stable. We can actually secure a spot in the store. Where we can actually secure those spots in the store is very important. Once we secure those, once we do have the possibility and forecast that we will be able to do that, the future for North America will be brighter. In retail, we have a very strong movement. Although it is not easy, we do see a rather stable, strong trend. If we continue our efforts and actually accomplish what we had started with, I think the future is bright. You say that we did not do well last year, by making these steady efforts, in June last year for midterm, we had actually confirmed each of these steps one by one. Some were not doing well, some were doing very well. There were some solid items. We actually sort of built the whole based on what is strong. Of course, there are things that may happen suddenly, like the case in Argentina. We do need to become a very strong company. Would this be a good answer? Thank you very much. Thank you very much, Mr. Sakamaki. We would like to close the Q&A session here. With that, FY 2023 briefing on the results will come to a close. We thank you for your participation.