Bridgestone Corp Q1 2022 Earnings Presentation Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kazunori Maki - SMBC Nikko Securities Inc., Research Division - Analyst : Thank you, Maki of Nikko, SMBC Nikko Securities. I would like to also ask 2 questions. The first one is that there are some overlaps. But as for the demand for HRD, it was quite strong at positive 20% for replacements. I think the plan was around 116 to 120% of growth. In other words, it was over those figures. And I wonder if this is a temporary increase? Or is it an increase in market share due to the increase in structural shift from OE to replacement, which you have been observing for some time now. As a result, as for sustainability, which direction do you expect it to move? And would you expect this demand to continue for the full year? That's my first question. And for the second part, on the price increase on the last page of the material, there is a spread between selling price and raw materials of about JPY 50 billion plus since we saw the same kind of number of JPY 50 billion or so at the last presentation, I assume that this buffer will be maintained while raising prices and managing sales. Do you think that the current price increases will be sufficient to retain this gap? Or do you think it is necessary to further raise prices in the future? Continental and Michelin has raised their prices for the third time. And I believe you have also raised prices for TB, et cetera. I wonder where the price limit for this increase lies that will not affect the demand in the future. Are you still in the range where you can raise prices in a healthy way? Or are you close to the breaking point? Please let me know if you are discussing this at this point.

Question: Kazunori Maki - SMBC Nikko Securities Inc., Research Division - Analyst : Yes. Thank you. Well then, can I understand that you do not necessarily have concern now that the present environment, with further inflation, especially in the United States may shift demand from the higher end tires to more inexpensive tires or the result in the changes in the driving business?

Question: Kazunori Maki - SMBC Nikko Securities Inc., Research Division - Analyst : Thank you very much.