Auto Parts & Tires: Japan: Feedback from Meetings with Overseas Investors

We visited US institutional investors from October 5-8. Most questions during the meetings focused on three names: GS Yuasa (US investor interest in energy storage systems was also high, with many questions regarding GS Yuasa's competitive advantages), NHK Spring (interest in HDD suspensions was strong, including the potential impact of increased nearline HDD production at a Toshiba subsidiary), and Musashi Seimitsu Industry (including views on the timing of the start-up of the new Minami-Alps plant). Elsewhere, although the recent further rise in natural rubber prices has raised concerns about F12/27 earnings for tire makers, interest appeared high in Toyo Tire (attractive valuations) and Yokohama Rubber (new medium-term management plan starting next fiscal year). Investors also asked about Denso (including its stance on acquisitions of semiconductor companies and views on the suspension of the spark plug business divestiture), as well as about TIER IV (e.g., its competitive advantage