Financial Data and Key Metrics Changes - The operating profit for the fiscal first quarter was JPY 244.1 billion, a decrease of JPY 240.5 billion compared to the same period last year [2][4] - The full-year forecast for operating profit has been revised up to JPY 700 billion, an increase of JPY 200 billion from the previous forecast [2][4] - The net profit forecast for the year is JPY 420 billion, up by JPY 170 billion from the previous estimate [4][5] Business Line Data and Key Metrics Changes - Motorcycle operations achieved an operating profit of JPY 189 billion, an increase of JPY 11.3 billion year-on-year, driven by sales growth in South America [9] - The automobile segment reported an operating loss of JPY 29.6 billion, impacted by tariffs and nonrecurring expenses related to EVs [9][10] - Power Products segment saw a decline in sales, totaling 828,000 units, with growth primarily in Europe [6] Market Data and Key Metrics Changes - Unit sales for motorcycles reached 5.143 million, with significant growth in Brazil and Vietnam [6] - Automobile sales declined to 839,000 units, primarily due to decreases in China and other Asian markets [6] - The forecast for motorcycle unit sales remains at 21.3 million, while automobile sales are projected at 3.62 million [11] Company Strategy and Development Direction - The company aims to improve its earnings structure and expand profits despite ongoing uncertainties related to tariffs and policy changes [3] - There is a focus on localizing production in the U.S. to meet demand and mitigate tariff impacts [22] - The company is exploring collaborations with Nissan and Mitsubishi Motors to enhance business operations [62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the Chinese market, which has seen declining sales for 17 consecutive months, and emphasized the need for strategic adjustments [55][59] - The company remains cautious about the impact of tariffs and is actively monitoring the situation to adapt its strategies accordingly [20][64] - Future EV production timelines may be affected by recent losses and market conditions, with a focus on being prepared for the next fiscal term [80] Other Important Information - The company has acquired shares worth JPY 936.5 billion as part of its share buyback program [3] - The gross impact of tariffs has been revised to JPY 450 billion, reflecting ongoing assessments and adjustments [26][33] Q&A Session All Questions and Answers Question: Impact from tariffs and production strategy - Management confirmed that the reduction of tariffs from 25% to 15% is a positive development for the company, but uncertainties remain regarding future tariff applications [18][20] - The company plans to maintain a high local production ratio in the U.S. and may adjust production allocations to optimize operations [22] Question: Forecast assumptions regarding tariffs - The company has not significantly changed its assumptions regarding tariffs but is working closely with suppliers to understand the impacts [27][31] - The gross impact of tariffs has been adjusted based on detailed calculations, with expectations for a 15% tariff starting from September [33] Question: Sales decline in Asia and Europe - Management noted that competition from Chinese OEMs has intensified in Asian markets, affecting sales, and emphasized the need for hybrid model launches to regain market share [39][42] - In Europe, the company is reassessing its strategy due to historical production challenges and ongoing competitive pressures [42] Question: EV losses and pricing strategy - The company anticipates significant EV-related losses, with a total of JPY 250 billion expected for the fiscal year, impacting future production strategies [78][80] - Pricing strategies will be cautiously adjusted in response to market conditions and inflation trends, with ongoing monitoring of competitor pricing [66][69]

Financial Data and Key Metrics Changes - The operating profit for the fiscal first quarter was JPY 244.1 billion, a decrease of JPY 240.5 billion compared to the same period last year [3][5] - The full-year forecast for operating profit has been revised up to JPY 700 billion, an increase of JPY 200 billion from the previous forecast [3][5] - The net profit forecast for the year is JPY 420 billion, up by JPY 170 billion from the previous estimate [5][6] Business Line Data and Key Metrics Changes - Motorcycle operations achieved an operating profit of JPY 189 billion, an increase of JPY 11.3 billion year-on-year, driven by sales growth in South America [10] - The automobile segment reported an operating loss of JPY 29.6 billion, with sales impacted by declines in China and other Asian regions [10][11] - Power Products experienced a decline in North America and Asia, totaling 828,000 units sold, while Europe showed growth [7] Market Data and Key Metrics Changes - Unit sales for motorcycles reached 5.143 million, with significant growth in Brazil and other regions [7] - Automobile unit sales were 839,000, reflecting declines primarily in China and other Asian markets [7] - The forecast for motorcycle unit sales for the full year is maintained at 21.3 million, while automobile sales are projected at 3.62 million [12] Company Strategy and Development Direction - The company aims to improve its earnings structure and expand profits despite ongoing uncertainties related to tariffs and exchange rates [4] - There is a focus on localizing production in the U.S. to mitigate tariff impacts and enhance competitiveness [20][23] - The company plans to increase production capacity in Brazil to meet high demand, indicating a strategic emphasis on South American markets [57] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the Chinese market, which has seen declining sales for 17 consecutive months, and emphasized the need for strategic adjustments [59][61] - The company remains cautious about the impact of tariffs and is actively engaging with suppliers to manage costs [34][36] - Future EV production timelines may be affected by recent losses and market conditions, with a focus on preparing for a launch in the next fiscal year [84] Other Important Information - The company has initiated a share buyback program amounting to JPY 1.1 trillion, with JPY 936.5 billion worth of shares acquired as of July 31 [4] - The forecast for the full-year dividend remains unchanged at JPY 70 per share [6] Q&A Session Summary Question: Impact from tariffs and production strategy - Management confirmed that the reduction of tariffs from 25% to 15% is a positive development, but uncertainties remain regarding the implementation details [20][22] - The company plans to maintain a high local production ratio in the U.S. and may adjust production shifts to increase output [23][25] Question: Tariff assumptions for the fiscal year - The company has revised its gross impact from tariffs to JPY 450 billion, reflecting detailed calculations and adjustments [29][30] - Management is working closely with suppliers to understand the implications of tariffs on parts and components [34][35] Question: Sales decline in Asia and Europe - The decline in sales is attributed to increased competition from Chinese OEMs and varying government subsidies for hybrid vehicles [43][46] - Management is focusing on launching hybrid models in markets where they have not yet been introduced to regain competitiveness [44] Question: EV losses and future production - The company expects EV-related losses to total JPY 250 billion for the fiscal year, with ongoing assessments of production strategies [82][84] - Management is cautious about the timing of the Zero series EV launch due to market conditions and IRA impacts [84] Question: Price hikes and forecast assumptions - Price hikes are being considered cautiously, with management monitoring inflation trends and competitor pricing strategies [71][72] - The company remains conservative in its forecasts, particularly regarding exchange rates and tariff impacts [73][76]

Donald Trump's August 1st deadline is here. Well, almost. Tomorrow is the day new tariffs are set to take effect.The president's 90-day pause gave importers a chance to stockpile at a lower tariff rate, and many companies planned ahead, but some brands are already announcing price hikes. Joining us now, former chair of the Council of Economic Adviserss under President Biden, Jared Bernstein, and director of economic policy research at Veta Partners, Henrietta Trees. And Henrietta, starting with you, we know ...

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