Bridgestone Corporation · TSE:5108
Bridgestone — Q3 2020 Earnings Presentation
21 slides from Bridgestone's earnings presentation, Nov 12, 2020
Slide 1: Financial Results for 3rd Quarter of Fiscal 2020
Financial Results for 3rd Quarter of Fiscal 2020 Bridgestone Corporation November 12, 2020
Slide 2: Agenda
1. Business and Financial Performance ･･･ 2 for 3rd Quarter of Fiscal 2020 2. Consolidated Projections for Fiscal 2020 ･･･ 13 3. Year-end Dividend Forecast ･･･ 18 1/19
Slide 3: 1. Business and Financial Performance for 3rd Quarter of Fiscal 2020
1. Business and Financial Performance for 3rd Quarter of Fiscal 2020 2/19
Slide 4: Recovery Status from COVID-19 Impacts and Initiatives in 3rd Quarter of Fiscal 2020
Recovery Status from COVID-19 Impacts and Initiatives in 3rd Quarter of Fiscal 2020 Market Conditions In contrast to 2nd quarter, when demand fell sharply due to COVID-19 impacts, the global tire market for both new vehicles and replacement recovered in 3rd quarter. PS/LT/TB : Demand recovery in U
Slide 5: Business Environment Surrounding Bridgestone Group
Business Environment Surrounding Bridgestone Group Currency JPY is stronger against USD and weaker against EUR vs. PY Exchange 1USD=106yen, 1EUR=124yen (Ref.) 3Q’19 1USD＝107yen, 1EUR＝119yen Raw Material Both natural rubber and crude oil rose sharply from 2nd quarter, when the market fell. In par
Slide 6: Tire Sales Growth for 3rd Quarter of Fiscal 2020
Tire Sales Growth for 3rd Quarter of Fiscal 2020 PSR/LTR TBR ORR 3Q 9 months 3Q 9 months 3Q 9 months Global 90％ 78% Global 87％ 81% Ultra-Large 87％ 87％ (only REP) OE OE Global 88% 71% Global 73% 65% Large 71％ 77% OE 43% 48% Japan 82% 77% Japan 76% 84% REP 77% 87% N. America 98% 68% N. America 67% 58%
Slide 7: Consolidated Results for 3rd Quarter of Fiscal 2020
Consolidated Results for 3rd Quarter of Fiscal 2020 (Yen in billions) 【IFRS】 2019 9 months Results 2020 9 months Results vs. PY (%) 1H vs. PY (%) 3Q vs. PY (%) Revenue 2,623.7 1,355.5 (22) 793.5 (10) 2,148.9 (18) Adjusted Operating Profit 257.2 48.3 (68) 70.2 (33) 118.4 (54) Ratio 9.8% 3.6% (5.2)pp
Slide 8: Analysis of Adjusted Operating Profit for 3rd Quarter of Fiscal 2020
Analysis of Adjusted Operating Profit for 3rd Quarter of Fiscal 2020 Raw (Yen in billions) Materials Volume *2 +35.0 (145.0) incl. Conversion cost and 300 currency depreciation impacts in Latin America Operating Expense 250 Others (*2) Price (*1) +78.0 +8.0 Depreciation/ (102.8) *1 Amortization Fore
Slide 9: Financial Results by Segment
Financial Results for 3rd Quarter of Fiscal 2020 by Segment (Yen in billions) 2019 2020 【IFRS】 9 months Results 9 months Results vs. PY (%) Consolidated Revenue 2,623.7 2,148.9 (18) Japan 666.8 526.8 (21) Americas 1,254.2 1,036.7 (17) Europe, Russia, Middle East, India and Africa 481.8 405.5 (16) Ch
Slide 10: Financial Results by Product (Tire Business)
Financial Results for 3rd Quarter of Fiscal 2020 by Product (Tire Business) (Yen in billions) 2019 2020 【IFRS】 9 months Results 9 months Results vs. PY (%) Revenue 1,252.1 1,018.0 (19) Adjusted OP 124.4 54.3 (56) PS/LT * incl. retail and credit card business Ratio 9.9% 5.3% (4.6)pp Revenue 600.5 472
Slide 11: Financial Results by Product (Diversified Products Business)
Financial Results for 3rd Quarter of Fiscal 2020 by Product (Diversified Products Business) (Yen in billions) 【IFRS】 Sports / Cycle Biz Revenue: 48.0 (13%) Diversified Products Chemical & Industrial Business Products Biz Revenue: 378.6 Revenue: 160.3 (43%) Adjusted OP: (2.5) Diversified Products Biz
Slide 12: B/S and C/F Highlights
B/S and C/F Highlights for 3rd Quarter of Fiscal 2020 (Yen in billions) 【IFRS】 2020 3Q Results (As of Sep. 30, 2020) vs. Dec. 31 2019 Total Assets 4,111.6 (165.5) Total Equity 2,175.6 (226.9) Equity Ratio (%) 51.8% (3.1)pp Interest-Bearing Debt 〈Net〉 381.5 (30.1) 2020 3Q Results vs. PY Cash Flows fr
Slide 13: Non-recurring Items for 3rd Quarter of Fiscal 2020
Non-recurring Items for 3rd Quarter of Fiscal 2020 (Yen in billions) Adjusted Items 75.0 Main Items Impairment losses 35.1 : China TBR Business and Russia Business : Provisions relating to the commencement of discussions for the Business and plant restructuring expenses 25.9 closure of overseas tire
Slide 14: 2. Consolidated Projections for Fiscal 2020
2. Consolidated Projections for Fiscal 2020 13/19
Slide 15: Forecast of Business Environment Surrounding Bridgestone Group
Forecast of Business Environment Surrounding Bridgestone Group Currency 4Q : 1USD = 105yen, 1EUR = 124yen Exchange FY : 1USD = 107yen, 1EUR = 122yen Raw Material Natural rubber to rise sharply in 4Q Prices Crude oil to remain at the same level as in 3Q Demand slowdown in 4Q mainly in US an
Slide 16: Tire Sales Growth Projections for Fiscal 2020
Tire Sales Growth Projections for Fiscal 2020 PSR/LTR TBR ORR Global 80~84％ Global 80~84％ Ultra-Large 80~84％ (only REP) OE OE Global 70~74% Global 65~69% Large 80~84％ OE 55~59% Japan 80~84% Japan 85~89% REP 85~89% N. America 75~79% N. America 60~64% Small & Medium 80~84％ Europe 75~79% Europe 70~74%
Slide 17: Consolidated Projections for Fiscal 2020
Consolidated Projections for Fiscal 2020 (Yen in billions) (Ref. Aug. 7, 2020 【IFRS】 2019 2020 vs. PY (%) announcement） Results Projections 2020 Projections Revenue 3,507.2 2,890.0 (18) 2,700.0 Adjusted Operating Profit 335.7 150.0 (55) 100.0 Ratio 9.6% 5.2% (4.4)pp 3.7% Profit Attributable to Owner
Slide 18: Analysis of Adjusted Operating Profit for Fiscal 2020
Analysis of Adjusted Operating Profit for Fiscal 2020 *2 Raw Materials FX impact on Operating *3 Volume Expense is included in (Yen in billions) +53.0 (178.0) “Foreign Exch. Loss” (+11.0) Incl. conversion cost and currency depreciation impacts 400 Price (*1) in Latin America Operating 350 +6.0 Expen
Slide 19: 3. Year-end Dividend Forecast
3. Year-end Dividend Forecast 18/19
Slide 20: Year-end Dividend Forecast
Year-end Dividend Forecast Basic Dividend Policy In regard to distributing profits to shareholders, the Company conducts shareholder returns while maintaining an appropriate financial position and securing the internal revenues necessary for future growth investments. In determining dividend pay
Slide 21: Forward-looking statements disclaimer
Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Bridgestone. Forward-looking statements include, but are not limited t