Hello everyone. Thank you very much for attending the Q1 2024 Financial Results Briefing hosted by Bridgestone Corporation. Let me introduce to you the presenters. To start, I'm with Director of Bridgestone Corporation, Representative Executive Officer Shuichi Ishibashi, as well as Global CFO and General Manager of the Finance Division, Naoki Hishinuma. We also have Yoshikazu Shida, Global CCO, as well as the Global CAO, Masahiro Higashi. So I would like to hand it over to Mr. Shuichi Ishibashi, again, our Global CEO, to take you through the overview of the first quarter 2024 financial summary and full-year forecast. Hello to everyone. I am Ishibashi, Global CEO. 2024, as the first year of the 24 Medium-Term Business Plan announced on March 1st, we will resolve remaining and new issues of the 21 Medium-Term Business Plan. Our top priority is to return to a strong Bridgestone capable of adapting to change. Today I will explain our first quarter results, including the progress made to date. In the first quarter, although there were some challenges such as lower demand for truck and bus tires in North America and a deteriorating business environment in Latin America, which we had assumed at the time of the planning in February, off-the-road tires for mining vehicles and passenger car premium tires in the replacement market supported the performance, and with the tailwind of foreign exchange, also, contributed to the year-on-year increase in revenue and profit. While continuing to strengthen our focus on premium tires with promoting measures to combat the deterioration of Latin American business, we will continue to manage our business with the aim of covering such negative impact in other areas. Demand and sales in the first quarter. First, let us summarize the passenger car tire business. Demand for OE tires remained firm in North America as in the previous year. In Europe, demand was down from the previous year due to the economic slowdown and the slowdown in the shift to EVs, and in Japan, demand was also down. Global sales were approximately 90% of the previous year level, and for the full-year, we currently expect the same trend as in the first quarter to continue. In high rim diameter tires for new cars, demand in North America and Japan increased year-on-year, while demand in Europe decreased year-on-year. Sales declined slightly year-on-year globally, reflecting the respective demand and mix of car models. We will continue to strengthen our approach to premium models and OE, prestige OE, and premium EVs on a global basis. Next is the overall demand and sales for replacement tires. In North America, both sell-in and sell-out demand was almost on par with the previous year, and sales were similar. Europe, demand was on par with the previous year, although distribution inventories normalized, except in some regions. The company reduced low-end size and unprofitable products and focused on premium products, and all in all, the market share was down. Japan, demand fell sharply from the previous year due to a delay in the so-called spring replacement demand and the impact of temporary demand prior to the previous year's price hike, and sales were partially unbalanced between quantity and quality. The market share was down. In addition, there was a decline in sales in Latin America, and as a result, global unit sales were approximately 90% of the previous year level. For the full-year, we currently expect the same global unit sales volume as the previous year, as in the February plan. In the area of replacement high-rim diameter tires, global demand continues to grow, and we are working to expand sales and increase market share while capturing this demand. In North America, we expanded our market share based on Dan-Totsu products and new channel development. In Europe, sales increased year-on-year, but market share was down due to a weak channel base and a balance between quantity and quality-based issues. Similarly, the market share resulted in a decline. In Japan, so in both regions, we expect sales to increase year-on-year for the full-year, and we will work to recover. In addition, China, where we are exiting from the truck and bus tire business and focusing on premium passenger car tires, the company accomplished significant sales growth. Global total sales have also expanded. For the full-year, we expect sales to continue to grow. Increasing sales of such high-rim diameter HRD tires will support the entire company's business performance under the challenging environment and will continue to strengthen them. In North America and Europe, we are also focusing on ultra HRD tires, or 20 inches or above, to improve our sales mix. In the first quarter, nearly or in the fourth quarter, nearly 70% of OE and 45% of replacement, or HRD tires. In Japan and emerging markets, we will continue to improve the sales mix. In addition, we are strengthening sales of products equipped with ENLITEN, a product design platform technology that pursues ultimate customization as a new premium product, and other highly profitable premium tire brands. Next, I would like to discuss truck and bus tires. In OE tire business, sales volume in North America remained at about 80% of the previous year's level due to a significant decrease in demand from a year before. From the second quarter onward, we are stepping up our efforts to recover to the previous year's level for the full year by, for example, promoting negotiations for new contracts. In Europe, demand continued to decline, and sales also went down. We will optimize the balance between volume and quality while continuing to focus on premium. In Japan and globally, we will continue our focus on premium. For replacement, global sales volume was approximately 90% of the previous year's level. In particular, the situation in North America has had a significant impact on the company's overall performance. Let me first explain about demand. Although sell-out recovery is slightly lower than expected, distribution inventories normalized at the end of the first quarter as planned in the guidance in February. On the other hand, due to dealers' efforts to reduce inventories as a result of continued high interest rates, demand was slightly down year-on-year. Overall sales in North America were less than 90% of the previous year's level. By brand, the premium and Bridgestone brands, which are strong mainly in the fleet business, steadily expanded sales year-on-year. On the other hand, sales for dealers where more Firestone brand products are used declined significantly due to the impact of inventory reductions and challenges in optimizing the balance between volume and quality. For the full year, demand in North America is expected to recover and grow year-on-year from the second quarter onward, and sales are also expected to recover. However, since last year, we have been implementing PDCA cycle, thoroughly managing signals, assuming the risk of demand fluctuations, ensuring a firm balance between sales and supply, and starting production planning and inventory adjustment well in advance. In global sales, reflecting our focus on premium products, sales in Europe, Japan, and others declined from the previous year. In the first quarter, sales were less than 90% of the previous year's level. Sales of off-the-road tires for mining and construction vehicles continue to be the same level as the previous year in each category. Solid sales in highly profitable business contributed to the company's entire performance. In addition, we are promoting business expansion in mining solutions. Based on the above, I will explain our business performance with a focus on adjusted operating profit. As for raw materials, although the depreciation of the yen was a negative factor in the profit of products manufactured in Japan, global profit increased year on year. In order to secure business performance, we improved sales mix by reducing or discontinuing loss-making or unprofitable businesses and thoroughly implemented expense management to cope with the decrease in sales volume. In addition, various business cost reduction measures promoted under 24 MBP were gradually reflected in our business performance and contributed to increased profits. On the other hand, the depreciation of the business or deterioration of the business environment in South America, especially in Argentina, accelerated, and negative impact on the company's performance expanded. Adjusted operating profit margin improved slightly from the previous year and will continue to improve the quality of our business. We will report on the progress of 24 MBP after the first half of the fiscal year, but since the first quarter, we have been promoting activities to improve management and working and business quality and to strengthen earning power in line with 24 MBP. To strengthen our business quality, we have returned to origins, and since last year, we have been reaffirming and re-enhancing the business Bridgestone Deming Plan, which was established in the 1960s to strengthen our quality improvement activities. As we started with strengthening activities by the top management, in March this year, we held GEXCO, or Global Executive Committee, our highest-level meeting body in Kurume City, Fukuoka Prefecture, the birthplace of Bridgestone, with an emphasis on Genbutsu-Genba, or respectful being on site. The meeting confirmed and discussed Bridgestone's DNA activities for mining and aviation tire solutions and premium tire production improvement activities at Kurume and Tosu plants. In addition, we have started to distribute booklets and provide workshop-type training programs to global employees so as for the entire company to work to strengthen its business quality. Furthermore, based on the new global portfolio management structure, we are closely following up monthly business performance in each of the 47 areas, quickly running the PDCA cycle, and strengthening management that is focused on execution and delivering results. As for the second stage of restructuring, the rebuilding, we have already announced our withdrawal from the TB business in China and also promoting to rebuild our European business and retail channels in Thailand and Japan. In addition, the business cost reduction across the value chain is gradually starting to contribute to our business performance. In promoting global procurement activities and global SCM, supply chain management logistics transformation, B-Direct, we opened a new distribution site in Spain that incorporates Green and S mart technologies to improve the efficiency of our logistics network and inventories. We are also promoting BCMA and shift to Green and Smart in our factories linked to BCMA. Steady productivity improvement based on Genbutsu-Genba, respectful being on site, generated JPY 5 billion in profit increase in the first quarter. These activities are reflected in the performance by each business portfolio, and the premium tire, core business secured an adjusted operating profit margin of approximately 15%. In the solutions business, 3/4 of the retail service of sales, provided with adjusted, operating margin of a little less than 3%, and there is a need to rebuild, Europe and Japanese business there. However, B2B Solutions for commercial goods, including mining and aviation solutions, driving force behind the expansion of solutions, achieved quarter of the total solution business sales with an increase in sales and profit and an adjusted operating margin of about 8%. The breakdown of the diversified products businesses will be explained later by CFO, but, Japan's chemical and industrial products businesses, for example, achieved steady improvement. Financial results by segments are as indicated on the slide. In the Japan segment, the Japanese tire business continued to face difficult environment along with the retail business, but exports increased partly due to the impact of the yen's depreciation. In the specialty tire business, such as in mining and aircraft tires, we achieved an adjusted operating profit margin of about 25%. In the Americas, the impact of the decline in sales of TB tires in North America was significant, and the deteriorating business in Latin America, especially in Argentina, which I will explain later, was a major factor in the decline in profit. Next, I would like to discuss the full year forecast. The exchange rate assumption has been updated to 140 JPY to a USD, a weaker yen compared to the February assumption in light of the recent trends. Although this will be a factor for increased profits, the forecast for the full year remains unchanged from the February assumption with the adjusted operating profit of JPY 530 billion reflecting deterioration in the Latin American business. I would like to explain the outlook and countermeasures for the Latin American business. the Argentina business, which was considered a management risk at the time of the February guidance, we envisioned three scenario plans: optimistic, neutral, and worst, based on the volatile business environment. The neutral scenario was reflected in the guidance in February. In the latest environment, there is further slowdown in GDP growth rate, and inflation is proceeding more rapidly than assumed with rapidly declining tire demand. There are accelerating changes to an environment approaching the worst scenario. In the first quarter, the decrease in profit was a factor of JPY 8 billion versus the previous year. Due to the consequences of inflation, the market structure is changing at an accelerated pace along with the declining demand as more imported goods enter the market. We have already launched countermeasures at the end of last year to better monitor and manage the signals of change. In response to the worsening business environment, we are first taking emergency and short-term measures. We will implement sales strategies that optimize the balance between quantity and quality, adjust supply and production plans to cope with a sharp decline in sales volume, streamline inventory, reduce conversion costs, and cut fixed costs and operating expenses. In the Latin American business, we recognize the risk of further deterioration of the environment, particularly in Argentina, and will continue to take measures to minimize the impact while quickly assessing the impact on our 2024 performance. In addition, as a medium to long-term action for 2025 and beyond, we have begun to consider business rebuilding, including structure of production and sales in Latin America. This is an explanation of first-quarter results and full-year forecasts. As for the progress of the 24 Medium-Term Business Plan, because we have only just announced it and started full-scale activities in March, I had explained the first-quarter results and key points related to the business management only at this time. We would like to provide a more comprehensive progress report at the time of the next Q2 results in August. Thank you for your continued understanding and support, and thank you very much for your attention. Thank you very much. That was the presentation by Global CEO Shuichi Ishibashi on the first quarter 2024 financial summary and full-year forecast. Now turning to Naoki Hishinuma, who is the Global CFO and general manager of Finance D ivision, to take you through the Q1 2024 financial results. I'm Hishinuma, and I'm in charge of finance. I would like to explain our consolidated financial results for the first quarter, FY 2024, as well as the guidance for fiscal 2024. Here's today's agenda. Let me start with the first quarter business and financial performance. The consolidated results for the first quarter 2024 are, as shown here. Revenue was JPY 1,064.1 billion, up from the previous year, and adjusted operating profit was JPY 120.2 billion, again, up from the previous year. Negative factors such as lower demand and sales of truck and bus tires and deteriorating business in Latin America were partially absorbed by mix improvements, such as expanded sales of premium tires and business cost reductions. The weak yen also helped boost profits, and the adjusted operating profit margin improved by 0.1 percentage point to 11.3%. Profit attributable to the owners of the parent, JPY 86.6 billion. A slight decrease from the previous year because gains on sales of fixed assets was booked as an adjusted item in the prior year as one-time significant gains. As an executive summary, we present the highlights of our business performance. As explained earlier, in the first quarter 2024, we have accomplished an increase in both sales and profit and have landed on an improved adjusted operating margin. We will continue to accelerate our efforts to reinforce the earning power through the enhancement of business quality. Continuing on, here's the business environment for the first quarter 2024. In terms of exchange rates, the yen depreciated against both the U.S. dollar and euro compared to the previous year. As for raw material prices, the feedstock prices of natural rubber were on the upward trend compared to the previous year, while feedstock prices of crude oil were on par with the previous year. As for the impact of raw materials on first quarter, taking time lag from raw material purchase to actualization in COGS account, natural rubber prices were flat year-on-year, while unit prices for other raw materials such as crude oil and butadiene and full year-on-year. Tire demand. Demand for new vehicles had softened against the backdrop of declining vehicle production by automobile manufacturers, although there were regional differences. Replacement tires, the demand level for PSR remained at the same level as previous year, while that for TBR was lower than previous year, due to relatively slow recovery in demand. Japan, demand was significantly lower than previous year due to a delay in seasonal tire demand and rush demand before the previous year's price increases. On the other hand, demand for HRD tires above 18 inches continued to grow steadily year-on-year. This phase shows the sales volume of PSR and LTR tires. Global sales of PSR and LTR tires were below the previous year's level, 90%. Sales of OE tires also decreased due to a decline in vehicle production, except in some regions. Sales of replacement tires in Asia and North America generally stayed flat year-on-year, while sales in Japan were affected by the delay in seasonal tire demand and pre-buy of price increase in previous year. In Europe, sales declined significantly year-on-year due to the impact of selective reductions in unprofitable businesses. Sales of 18-inch and above HRD tires continued to grow steadily year-on-year on the back of the increased replacement demand. Next. On the sales of TBR and ORR tires in volume, global sales of TBR tires were short of the previous year at 89%. As with PSR, sales of tires for OE decreased due to the decline in vehicle production, except in some regions. As for replacement tires, the recovery of demand was slower than that of PSR, and sales in all regions were below the previous year's level. In Japan, in particular, sales were significantly lower than the previous year due to the delay in summer tire demand, impact of pre-buy of price increase in previous year, and selective reduction in unprofitable businesses. As for ORRs, while sales of ultra-large mining tires remained flat year-on-year due to stable demand for minerals, sales of tires for construction vehicles continued to decline due to the significant impact of lower demand in Europe for small and medium-sized ORR tires. I'll now explain the analysis of the adjusted operating profit forecast. In addition to softening raw material prices, thorough efforts to improve the sales mix partially absorbed the decline in volume, worsening conversion costs, including production adjustments, and decreasing profit for the Argentine subsidiary. A favorable foreign exchange rate also contributed to the FY year-on-year increase in profit. I will now explain the results by segment. As explained by the global CEO earlier, the Japan, Asia Pacific India China, and Europe, Middle East, Africa segments posted higher profits and profit margins despite lower sales year-on-year. In the Asia Pacific India China segment, partly due to the efforts of the reorganization of tire production sites in Thailand and the withdrawal from the TB business in China, the profit margin improved to 10% level. In the Americas segment, while sales of HRD tires were strong, the business in South America deteriorated. Sales declined mainly in the TB business. Conversion costs deteriorated due to production adjustments, and profitability of diversified products business in the Americas declined. As a result, sales increased but profit and profit margins went down year on year. I will now explain our results by product category. In passenger car and light truck tires, despite a decline in sales volume, sales and profit increased year-over-year on the back of expanded sales of HRD tires for replacement use, and profit margin improved by 0.8 percentage point. In the truck and bus tire business, although there were signs of improvement from the fourth quarter of last year, sales and profit declined from the previous year due to the impact of lower sales of replacement tires mainly in North America and Europe, and deteriorated conversion costs resulting from production adjustment, and the profit margin also declined by 3.8%. In the specialty segment, sales and profit increased year-on-year, and the profit margin improved by 3.3 percentage points to 24.7%, supported by a tailwind from the depreciation of yen, in addition to the solid sales of highly profitable mining tires, which supported the overall consolidated performance. In the chemical and industrial product business, earnings increased over last year, and the profit margin improved, reflecting strong sales of hydraulic hoses and plastic pipings, and the business continued to steadily improve. The sports and cycle business recorded a year-on-year decrease in profit due to a delay in the recovery of demand in the cycle business. In the diversified products business in Americas, which posted an operating loss due to the sluggish demand of commercial vehicles such as heavy-duty trucks and trailers, a difficult business environment, and the burden of the startup costs for the new EV-related businesses, we expect the business to return to profitability in the second quarter and thereafter. The following is the balance sheet and cash flow. Total assets increased JPY 163.6 billion from the end of the previous year to JPY 5,591.4 billion. The main reason for the increase was the impact of foreign exchange rates due to weaker yen. The equity ratio increased 1.4 percentage points from the end of the previous year to 63.2%, indicating continued improvement in financial soundness. Free cash flow was JPY 30.9 billion, and free cash flow was generally maintained at the same level as the previous year as a result of increased investment and improvement in working capital. Capital investments mainly was made in production enhancement investment to promote focus on premium areas and IT infrastructure construction in the more severe business environment compared to assumptions being selective, aiming for returns in a strategic growth investment. As a result, total capital investment amounted to JPY 62.9 billion. I will now explain the outlook for the full year 2024. As explained earlier, there is no change in the forecast for the full year of 2024 from the one that was announced in February, but I will explain the assumptions underlying the forecast. We assume that the yen will depreciate against the U.S. dollar and euro from the second quarter onwards to 140 yen and 151 yen, respectively, compared with February assumption. As for the feedstock, we assume that the unit price of raw materials, especially for natural rubber, is increased more compared to the February projection. While we expect tire demand to be roughly in line with the February forecast, we do assume risk of demand fluctuation for trucks and bus tires in North America. Under such an environment, we expect to see increase in profit from the February assumption due to the weaker yen, and we have not changed the February forecast of JPY 550-530 billion in adjusted operating profit, which includes the deterioration in Latin American business. In order to achieve the February guidance, we will continue to increase premium sales volume and sales mix throughout the year while working on business cost reduction to strengthen earning power and business structure. This concludes my presentation. Thank you very much for your attention. Now, we would like to turn to three analysts who have been designated by the company to ask questions. We would like to limit the number of questions to be two. So as I call your name and unmute your microphone, if you're able to show your face, please turn the camera on. Let me start with Mr. Sakaguchi from Mizuho Securities. Sakaguchi from Mizuho Securities. Thank you very much, and hello to you. Two questions. Question number one. The first quarter results vis-à-vis the annual forecast and outlook, what is your relative evaluation? Yen depreciation on one hand, however, Argentina business deterioration, and so on. So for the first quarter, regionally, I suppose you had anticipated the first quarter to be relatively severe. How do you consider the actual landing, particularly in the European business? It's rather challenging, and also the TB business has failed. Are those all within your range of anticipation, or is some surprise to you? So all in all, your own assessment of the actual results in the first quarter. So the second question, should I? Well, hold on. Let me respond to the first question. Thank you very much. So progress, as we close the first three months. The internal according to the internal plan, the first plan the quarter, the plan was there. And relative to that, exit at a constant, the currency, it was within the scope of expectations, that was in line. Well, maybe, the, the upside was enjoyed because of the FX movements. Buy factor. Raw materials, the, the sales price prices, makes all positive on one hand. On the other hand, sales volume was a little bit smaller than what we had anticipated. And on top of that, Argentina business, which was, again, slightly more severe than what we had internally anticipated. It's sort of a mix of factors, but, looking at the OpEx operating expenses and other conversion costs, we're able to offset those conditions; they're relatively positively. So FX, again, all within the range of anticipation. 135 JPY was our anticipation, and 149 JPY was the actual FX. It's between the two; the gap between the two was the upside that the company was able to enjoy. That's all for myself as the CFO. Thank you. North American truck and bus tire business and Europe, what's your assessment so far? Thank you. The volume was a little bit lower than our initial expectation as I explained. That had to do with the negative effect coming from the truck and bus tire business in North America, and Europe. North America, we have two brands, Bridgestone and Firestone. There are strong differences between the two brands. On one hand, for the Bridgestone brand, the, the Bridgestone branded tires are, they deliver directly, to the large fleets. So this is the top of the premium, mid-range. And customers, are quite, you know, knowledgeable and supportive from the of, the, the solutions business, and cost management discipline this year. So to those, the fleet customers that we were able to sell successfully, to, during the first, three months with the Bridgestone branded products. However, Firestone, there was, the, you know, the quite down. It was slower than our initial anticipation. I did say, that the dealer inventory had been sold out, more or less speaking. However, in North America, the government policy was such that the tariff will be lifted in about June, July, for the imports coming from Thailand. So all the related parties are trying to act in anticipation of that. So that they're having the in being engaged in cannibalization between the other brands. So the bottom income of the business, the targets between Firestone, the key customer target, and the T immediately beneath that. So if tariffs are going to be raised in June, July, we would suppose that the situation would be more or less normalized in the aftermath of that. But so far, there were the movements with the Firestone branded products, which were beyond our expectation. Thank you very much. So my question number two. Looking at a set of numbers. You said that the raw materials, selling prices, mix were positive, but the price was negative by about JPY 8 billion, even excluding manufacturers. I can see that for the selling prices, the minus JPY 90 billion, so wasn't it a little bit bigger? And of course, the passenger car tire is resolved successfully. So I had expected that, as you pointed out, that the price would benefit your performance. So what do you see in the second quarter and beyond, and will there be any adjustments to your strategy going forward in reference to the prices? Yes, as you point out. Looking back over the first three months, the price was a negative factor. However, looking at that and the raw material, the input, the import costs unpayable, we were able to secure the margin necessary. We also did talk about a little bit of severity in terms of the currency situations in North America, but we were able to maintain balance between the volume sold and also the overall cost needed to be managed. It's just that selling price for the first three months were a little bit more severe than we had anticipated. And our forecast and outlook for the rest of the year or on the full-year basis. On the full-year basis, our outlook. Though I am going to abstain from quoting any particular number, the price as an element would continue to be positive. So I guess your key message is that you'll be able to maintain the good balance and that, you know, the capacity, capability to be able to maintain the positive balance has not been distorted, and you maintained that, correct? Yes. Thank you very much, Mr. Sakaguchi, from Mizuho Securities. Let's move on to the next analyst. Mr. Maki from SMBC Nikko Securities, please. Hi, Maki from SMBC Nikko Securities. Thank you very much. Let me ask two questions as well. First question. It's related to what was discussed slightly. In the first quarter, you had an upside, compared to the assumption, but on the full-year basis, against the assumption for the full year, what has been the progress in the first quarter? Because in the first quarter, there are various situations. You are positive, but JPY 20 billion profit is included, and this could turn into negative territory for the full year. So if you consider that, what would be your prospect for the full year? Would that be changed? Would it be controllable? Or are there any remaining risks, especially TBR fluctuation risks? Is from increased imports from Thailand, and you seem to have lost a lot of share in the market. So what would be the serious reduction in inventory? What is the serious risk in prolonged inventory reduction? And as Mr. Ishibashi said, the TBR area share increase, what would be the positive factor from that? So, can you also update me on the progress, whether you are confident in achieving this target for the full year? So in that sense, as a conclusion, there's no change from the February guidance, but forex impact, 5-yen depreciation of the yen, has been incorporated. So in terms of profit, JPY 20 billion in positive factor, is now what we see. But, as I repeat myself, in Latin America, especially in Argentina, it's becoming difficult to foresee the future. Of course, we do assume the risks on a quantitative basis, but it's very hard to foresee. So, as a result, this time we just decided to leave the guidance unchanged in our disclosure. So what has manifested itself as a risk is also leveraging the positive factor from forex to address that risk. As for Latin America, the issue of Argentina is quite unique. But actually, for Brazil, as you may know, the Brazilian market in the past was once opened or then got closed. So there was a repetition of those cycles. And it had been closed for some time, but now, from last year, it has become increasingly opened. So this is also a risk for us as we see it. So Latin American risks, including Argentina and also the yen's depreciation, which is a tailwind. So you need to see the balance between these two. But as you asked, the actual mix, the passenger high rim diameter will increase its share, so we have to accelerate that share increase. And there is a probability, a high probability of that achievement being achieved. And for mining and for aviation, the tires business, for those will remain strong. So those two are the driving factors. But as for the cost, business cost reduction, global procurement has been done for that purpose, and steady productivity improvement activities has been also implemented. In the US, in the production sites, things have stabilized and settled down now because the people who have retired has been declined, and there are more people who have been trained in the production sites. So in terms of earning power, in terms of quantity, volume, and sales mix, and also business cost reduction, we are going to implement these on a steady basis from second quarter onward to earn more. So this that assumption has not been changed from the February guidance. And then there's another major factor, which is trucks in North America for replacement. So in the full-year forecast, which side is it going to turn? It could turn positive from some sides, but there are still risks as well. But on my part, in terms of inventories, there are more focus on risks, and so we have already started reducing inventories. So if things become positive, of course, we would start increasing production volume, but there is still possibility of getting worse. So we are doing this well in advance. But for North America, we don't know which side we end up with. So if things improve, then we would see more upside. But we need to mitigate if things go wrong, so we have to consider other factors to recover that. So there are risk factors of those that I just mentioned, and high rim diameter, mining and aviation and business cost reduction. All of these will have to be achieved as planned to achieve the full-year plan. That's where we are. Thank you. One additional comment. The distribution network in North America is going to be expanded, and there will be positive impact from the first quarter. That's what you have been saying. What about that? And there is structural reform that is being done in TireHub. So there could be some negative factor in distribution and also ATD. Those you could also approach those other companies. So there are positive factors and negative factors, so if you on a net basis offsetting everything, are you in a position to end up in positive factor, or negative territory? So North America high rim diameter for passengers are seeing increasing share. That's where we are. So whether this would continue or we should continue with this. But as you said, the new major customers so the share increase within the store of major customers has already been achieved. So this has become a major positive factor for us in the first quarter. But as you know, Mr. Maki, as you said, the major wholesaler area. So there is major developments of various nature in North America, including Goodyear and others, obviously, but I am not in the position to specifically mention that. But in what way things will develop, we are closely watching that. So behind the scenes, there are many developments, but I cannot go any further now. So we don't know whether this would end up positive or negative for us. We don't know yet. But the TireHub is, we are working with Goodyear. So if we depend on that, there will be major risks even if we're working with Goodyear on TireHub. So there are many approaches, initiatives that we're considering, especially for wholesale dealer business. As for retail business, the new customers or the merchandising plan, we have to secure new spots in the merchandise plan of new retailers. And so we are now in a position to increase the sales. Okay. So there is a lot of your movements will affect the entire industry, so can you keep us posted? The second question. As for solutions, as you explained earlier, on the full year, you seem to be behind the plan. So can you update me again? And related to that, on the full year, the European business reorganization or restructuring, I think there will be some effects that you can benefit. So compared to the solutions business that you had assumed in the beginning of the fiscal year, where are you in terms of progress? So as I said earlier, in solutions, three-quarters is represented in terms of sales by the retail service business. And directly owned stores in North America and Japan and Asia, Australia and Thailand, the directly owned stores and franchisees and directly run stores in Europe, if you add all these up, there is a big sales. But what is the problem is directly run stores in Europe, which is running a huge loss. So we are now taking actions against them. In addition, in the first quarter, as for Japanese retailers, there was a significant delay in summer tire demand, so there was some negative factor. And in Europe, in 2016 and 2017, there were several acquisitions made, and those acquired retail businesses by unit are being reviewed now. And the U.S. retail dedicated team has been to Europe to travel around the field, and I have been also traveling with them around the sites since May. And the basics for retail or for example, customer satisfaction, what about customer retention? Retail management, especially those who are actually working in the field, what is the incentive program for them, is it really right? So those basics are now being checked steadily and solidly to lead to the specific improvement activities. As I said in February, those improvement activities have been executed for some time so that we can see some results by the end of this fiscal 2024. That's what we promised. So if there are areas where improvements have been making progress and make improvements, but there are other areas where we decide that the improvements may not be done, so we'll take some actions, different actions that we promised. And in June, in the global executive committee meeting, we will make decision on that. And then the next major steering direction will be decided. That's how we are in retail business. So this year, in the first quarter, retail business improvements have not been seen in Europe specifically, but ahead of the second half of this fiscal year, we are taking actions so that this will lead to tangible results so that we can lead this business to next year. The one quarter is represented by B2B solutions. And when we say B2B solutions, it's about retread tires and for truck and bus and for mining vehicles and aviation. Those are B2B production material solutions. And the operating margin of 8% was achieved in first quarter in these areas. And as I have been saying, the model for the next mobility tech company, this is regarded as an important area. And things are improving steadily in this area. Therefore, for the full year of this fiscal year, we'd like to keep improving this. As for retail business, we have to do some fundamental actions, as I have been saying. At what timing, at which speed can we execute that? That is, make or break for us. Does that answer your question? Thank you. Thank you, Mr. Maki, from SMBC Nikko Securities. Next, I would like to ask Mr. Sakamaki of Daiwa Securities. Thank you very much. I am Sakamaki of Daiwa. Hello. Good afternoon. I don't think I can actually get myself on the screen. I am sorry about that. I would like to ask a question. The first question is related to Monozukuri. The conversion cost reduction in the first quarter is not that large. There has been a reduction of about 10% in production, but the conversion cost has not deteriorated that much. BCMA impact may be too early to be shown. Maybe there is such impact, or this may be an update in the mid-term business. But if there is something that is different now, would you be able to tell us about what kind of changes there has been in the conversion cost in the first quarter? First, Hishinuma-san, and then I will add to that. As was pointed out just now, in the first quarter, compared to the reduction in the production volume, the conversion cost reduction difference is smaller. As was mentioned, there is about JPY 5 billion improvement in the on-site improvement, kaizen. And this is a very steady, energy unit price increase or better allocation of the employees, etc. In other words, a steady effort that resulted in this JPY 5 billion improvement. And that is the reason why the reduction in the conversion cost seems to be smaller. Well, in reality, we, as was just pointed out, are very happy about this. This is very important for us. At Genba, they have really made steady efforts to improve the productivity. In the past, Japan and Asian nation was able to do this, but in Europe and also in the United States or Americas, it was very difficult to hire people and retain people. But now, I think we have been able to do better with that. And, with that, with support from Japan, we together, carrying out improvement and kaizen in Genba. And I think that is happening now. This is not necessarily a direct impact of BCMA's yet, but I believe that people working on-site are willing to, carry out various action, to improve the BCMA and implement BCMA. And that contributes to the steady improvement in the, conversion cost improvement at JPY 5 billion. But I think I am very happy that we see the contribution there. Unless you can do that, you will not be able to realize BCMA or green improvement in the first quarter. I believe that we will be able to contribute to the business cost improvement. And that is something that is very much Bridgestone, and we must implement that. And I may add that in Europe, production is not that easy, but energy cost has come down more than assumed. And that contributed to the conversion cost as well. Of course, that also made contribution, but we believe that on-site steady improvement of productivity and working on the challenges and moving on to BCMA, moving on to Green and Smart, is going to be the major contributor. And we need to continue to do that steadily. Thank you very much. My second question is the forecast for the actual volume. TBR was the issue asked by Mr. Maki. If there is a tariff introduction, they may act retrospectively as of April. I believe there has been a sudden increase in April. For Bridgestone, maybe the inventory has become more optimal and appropriate. But in other places, there may be some impact by others who may carry too much inventory and might have, maybe Firestone may be impacted by that. Are there some matters for concern regarding the inventory with this? Are there any factors that may have some kind of impact on the sales volume? The distribution inventory in the United States has been followed for the major dealers' sales. I think they have been reduced to about two months inventory for the U.S. distributor distribution dealers inventory. For the third tier and the fourth tier tires, there is sudden increase. Impacted by that, Firestone is dropping the volume. The tariff is probably acting on it. And if the tariff is normalized, I believe that Firestone will be able to, and must, get back the volume. I think that is going to be a major challenge. As for our inventory, as of last year, there has been a steady decline in the level. But starting this year, they are actually selling the high-cost products in the first quarter. And for the U.S. TB, starting at this point already, for the supply chain management, we need to have a conservative forecast for the sales. And that is what we have started doing. As business not too well, we will sell more, but we need to sort of tighten our position. In other words, it may not be so great, but we will do better is the kind of stance that we are taking. And Mr. Higashi will explain about this. As is indicated on this page, the demand itself as compared to last year is 76%. On April 1st, we increased the price last year. So the shipment from the manufacturers in March increased significantly, and there was repercussion from that. Another is that when you compare this to the level of the volume from the past, this is not necessarily a very active market. When you look at the market, the commercial tires will get the more direct impact. But for the consumer tires will get more direct impact. The commercial is also getting some impact. As was mentioned earlier, the so-called unprofitable tires must be eliminated. We are intentionally trying to reduce those tires that are not making a lot of profit. And this is intentionally done. And this has been the area of focus, especially for the dump trucks. For other nonprofitable segments, we are implementing actions this year. So there are some negative impacts shown on these numbers. But this is not a major deviation from the first quarter forecast, especially for the premium commercial products. This has already been incorporated, and this is directly related to the production plan. In case of the Japanese production, the distance between sales and production is very close. Therefore, production adjustment can be made very quickly in order to match the sales. So while carrying out production adjustment, we aim to try to aim at the most effective and efficient way, and how can we actually adjust the labor, etc. And they are also reflected in the conversion cost that you saw earlier. So we will be looking at the sales volume, and we will not carry out operation, which would result in surplus inventory in the future. I believe that we have the operational capability in order to show the strength of Monozukuri ourselves. Thank you very much.