Bridgestone Corp Q1 2023 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 speaking from SMB Nikko. I have too have two questions to pose. The first as regards to performance results for the first quarter and the point -- question number 2 is the Mid Term Business Planning. The first quarter is about full year guidance. The effect of pricing. That's what I would like you to explain further. Earlier, I remember hearing that good benefits of the price increase is the one that you would expect. However, the softening of the cost situations. And I wonder, whether there's any (inaudible) possibility that you would have to -- there may be extra room to adjust the prices downwardly because of the cost development? Also, I'm sure that you are talking with some dealers. But from the standpoint of dealers, what is it that do you think they prefer? The higher prices, which would be the enlarge -- the value, the inventory or they prefer to have lower selling prices because that would make it easier for them to sell items, which are today in the inventory? So, in your conversations with them, dealers what's the sense that you get? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 15, 2023 / NTS, 5108.T - Q1 2023 Bridgestone Corp Earnings Presentation And by the way, relating to this, raw materials, what you said is that the cost improvement to the recovery. The non-Japanese manufacturer tend to think that throughout this fiscal year, it is going to be the continuation of the total recovery. What do you think?

Question: Kazunori Maki - SMBC Nikko Securities Inc., Research Division - Analyst : So what you say in my read, let me summarize, what you said is that the so-called Tier 2 manufacturers start on the very challenging conditions of having to compete against manufacturers. They also have the inventory issues and in comparison to business conditions today is that the selling conditions are good and expected to improve. The pricing, the situation is stable enough. Having heard that though, does the CPI decline is starting to happen? And if, the cost situation goes -- going forward changes, then the overall costs prevailing can become lower, may present you with some different considerations necessary, and you will consider what will be the actions to make as you get to that situation, correct?

Question: Kazunori Maki - SMBC Nikko Securities Inc., Research Division - Analyst : It was very thorough and clear, more than anything else. My question number 2, refers to the Mid Term Business Plan. You said previously that JPY 1.2 trillion understood investment the funds or the amount will be subside, which is simply put in double what it was in previous MBP. And I recognize that in order for you to challenge the enhancement of the solutions business, you do need to make investments such as for items number 4 and number five, on that strategy. So where would you make investments? What will be -- when will be the timing of the return to be recouped? Is it in the course of '24 MBP and leading these discussions will be the BCMA ultimately. I don't know to what extent you can answer on that.