Bridgestone Corporation · TSE:5108
Bridgestone — FY2019 Earnings Presentation
24 slides from Bridgestone's earnings presentation, Feb 17, 2020
Slide 1: Financial Results for Fiscal 2019
Financial Results for Fiscal 2019 Bridgestone Corporation February 17, 2020
Slide 2: Trend of Sales, Profit
Trend of Sales, Profit 5 9,000. 4 3.8 8,000. 3.7 3.6 3.7 3.6 3.5 4 3.3 7,000. Net Sales 3.0 3.0 (Yen in tril.) 3 2.9 6,000. 3 5,000. 2 4,000. 300.5 288.2 291.6 292.5 284.2 2 265.5 3,000. Profit 202.0 Attributable to 171.6 1 2,000. Owners of 98.9 102.9 Parent (Yen in bil.) 1 1,000. 0 0.0 2010 2011 20
Slide 3: Trend of ROA, ROE
Trend of ROA, ROE 15.5％ 13.7% ROE 13.3％ 12.5％ 12.5％ 12.4％ 12.7％ 9.1％ 11.8％ 8.9% 8.0% 7.3% 7.5% 7.5% 7.5% 6.1% 7.1% ROA 6.0% 3.8% 3.6% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3 / 24
Slide 4: Trend of Equity Ratio, Free Cash Flow
Trend of Equity Ratio, Free Cash Flow 3500 70.0% 320.5 61.5% 61.9% 59.2% 3000 58.2% 58.0% 60.0% 52.4% 266.2 50.5% 2500 Equity Ratio 45.2% 50.0% 217.3 42.2% 206.5 42.2% 197.5 2000 166.5 40.0% 1500 122.9 117.8 30.0% Free Cash Flow 1000 77.1 20.0% 500 2011 10.0% 0 2010 2012 2013 2014 2015 2016 2017 201
Slide 5: Trend of Capital Expenditure, R&D Expenses
Trend of Capital Expenditure, R&D Expenses 296.3 289.2 Capital Expenditure 274.9 268.4 253.5 245.6 234.8 201.3 194.1 182.6 R&D Expenses 105.2 99.7 103.5 94.1 94.9 95.4 85.1 89.0 83.9 82.8 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 5 / 24
Slide 6: Trend of Dividend per Share, Payout Ratio
Trend of Dividend per Share, Payout Ratio 180 60% 1株当たり配当金 Dividend per Share 160 160 160 150 140 50% 140 130 41.2% 39.5% 120 40% 41.3% 39.9% 100 100 35.8% 30% 80 22.1% 26.1% 60 16.7% 20% 15.8% 14.6% 57 配当性向 Payout Ratio 40 32 20 22 10% 20 0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 (IFRS) 201
Slide 7: Priority Issues
Priority Issues Advance Brand Strategy Globally integrated brand strategy Cultivating global corporate Innovation Ensure our future competitiveness and differentiation culture Continuous Strengthen the fundamentals of our CSR Kaizen and Quality Management initiatives Developing HR Developing Develop
Slide 8: Brand Value Innovation, Digital・Solution
for the Future Brand Value Innovation Worldwide Olympic and Renewal of Kodaira Paralympic Partnership Digital・Solution Global（Glocal） webfleetsolutions New Aircraft Tire Solutions Bases in Thailand 8 / 24
Slide 9: 1. Business and Financial Performance for Fiscal 2019
1. Business and Financial Performance for Fiscal 2019 9 / 24
Slide 10: Business Environment Surrounding Bridgestone Group
Business Environment Surrounding Bridgestone Group ●USD: Stronger JPY, EUR: Stronger JPY vs PY Currency 1USD=109yen, 1EUR=122yen Exchange Ref.）2018FY：1USD＝110yen 1EUR＝130yen Raw Material ●Natural Rubber: Higher vs PY Prices ●Crude oil: Lower vs PY Tire Demand ●Weaker demand in global, mainly in OE (
Slide 11: Tire Sales Growth for FY of Fiscal 2019
Tire Sales Growth for FY of Fiscal 2019 (Year-on-Year, unit base) PSR TBR ORR OE & REP OE & REP Ultra-Large 102％ Global 96％ Global 96％ (REP) (102%) Large 98％ (REP) (106%) OE OE Japan 101% Japan 96% N. America 90% N. America 100% Europe 100% Europe 88% China/ China/ Asia-Pacific 95％ Asia-Pacific 89%
Slide 12: Consolidated Results for Fiscal 2019
Consolidated Results for Fiscal 2019 (Yen in billions) （Ref. Nov 8, 2019 2018 2019 vs PY（%） announcement） Results Results 2019 Projections Net Sales 3,650.1 3,525.6 (3) 3,490.0 Tires 3,051.4 2,953.1 (3) 2,910.0 Diversified 618.7 588.3 (5) 580.0 Products Operating Profit 402.7 326.0 (19) 330.0 (Ratio
Slide 13: Consolidated Operating Profit Variance Analysis for Fiscal 2019
Consolidated Operating Profit Variance Analysis for Fiscal 2019 (Yen in billions) Raw Volume Price Materials 450 +33.0 +4.0 (23.0) SGA Others Depreciation (24.0) (23.6) (27.0) 400 Incl. +5.0 Foreign IFRS16 “Leases” Exch. Loss 350 adoption (29.0) +29.0 (16.0) (52.6) ・ Webfleet Solutions, ・ Accounting
Slide 14: Financial Results for Fiscal 2019: Geographic Segments
Financial Results for Fiscal 2019: Geographic Segments (Yen in billions) （Ref. Nov 8, 2019 2018 2019 announcement） vs PY（%） Results Results 2019 Projections Consolidated 3,650.1 3,525.6 (3) 3,490.0 Net Sales Japan 1,170.5 1,132.3 (3) 1,140.0 The Americas 1,758.2 1,704.6 (3) 1,650.0 EMEA 596.1 587.0
Slide 15: B/S and C/F Highlights for Fiscal 2019
B/S and C/F Highlights for Fiscal 2019 (Yen in billions) FY 2018 FY 2019 (As of Dec. 31, 2018) (As of Dec. 31, 2019) vs Dec. 31, 2018 Total Assets 3,840.2 3,946.5 +106.2 Equity 2,436.1 2,344.2 (91.8) Equity Ratio (%) 61.9 58.0 (3.9)pt Interest-Bearing Debt 〈Net〉 (25.4) 162.1 +187.5 FY2018 FY2019 vs
Slide 16: Voluntary Adoption of IFRS and Change in Reporting Segments
Voluntary Adoption of International Financial Reporting Standards (IFRS) and Change in Reporting Segments Voluntary Adoption of IFRS ● Adopt IFRS for its consolidated financial statements from Q1 2020 ● Utilize “Adjusted Operating Profit” in place of the previously employed J-GAAP-based “Operating P
Slide 17: 2. Consolidated Projections for Fiscal 2020 (IFRS)
2. Consolidated Projections for Fiscal 2020 (IFRS) 17 / 24
Slide 18: Forecast of Business Environment Surrounding Bridgestone Group
Forecast of Business Environment Surrounding Bridgestone Group Currency Exchange ●Stronger JPY vs PY against USD and EUR Raw Material ●Natural Rubber: higher vs PY Prices ●Crude oil: almost flat with PY Tire Demand ●Moderate REP demand growth (PSR/TBR) ●Weaker OE demand (mainly in North America) Cur
Slide 19: Tire Sales Growth Projections for Fiscal 2020
Tire Sales Growth Projections for Fiscal 2020 (Year-on-Year, unit base) PSR TBR ORR OE & REP OE & REP Ultra-Large ~+5% Global ～+5% Global ～+5% (REP) (~+5%) Large ~+5% (REP) (+6％~+10%) OE OE Japan ±0% Japan ±0% N. America -6%～-10% N. America -16%～-20% Europe ～+5% Europe ±0% China/ China/ Asia-Pacific
Slide 20: Consolidated Projections for Fiscal 2020
Consolidated Projections for Fiscal 2020 (Yen in billions) 2020 vs PY（%）*1 Projections Revenue 3,550.0 +1 Adjusted Operating Profit 360.0 +5 (Ratio) 10.1% (Ratio) +0.3pt Profit Attributable to Owners of Parent 230.0 (4) Dividend per Share 160 yen - US Dollar/Yen rate: 108 yen (1) Yen Euro/Yen rate:
Slide 21: Consolidated Adjusted Operating Profit Variance Analysis for Fiscal 2020
Consolidated Adjusted Operating Profit Variance Analysis for Fiscal 2020 Operating (Yen in billions) Volume Expense 400 +26.0 △19.0 Foreign Raw Others Exch. Loss Price Materials △1.0 △10.0 +5.0 +15.0 350 Exchange rate Sensitivity(full year) USD: 2.6 bil yen 360.0 EUR: 0.8 bil yen 300 344.0 326.0 250
Slide 22: Financial Projections for Fiscal 2020 by Segment
Financial Projections for Fiscal 2020 by Segment (Yen in billions) 2020 vs PY(％)*1 Projections Consolidated 3,550.0 +1 Revenue Japan 930.0 +1 Americas 1,650.0 (1) Europe, Russia, Middle East, India and Africa 660.0 +3 China, Asia-Pacific 480.0 +4 Consolidated 360.0 +5 Adjusted Operating Profit Japan
Slide 23: Summary
Summary Consolidated Financial Results 2019 Results Operating profit was below PY due to volume decrease and higher conversion cost in addition to negative currency effect. Price and product mix improved despite weaker demand in global market, mainly in OE. FY Projection Weak OE demand is expected t
Slide 24: 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