Bridgestone Corporation · TSE:5108
Bridgestone — H1 2020 Earnings Presentation
21 slides from Bridgestone's earnings presentation, Aug 7, 2020
Slide 1: Financial Results for 1st Half of Fiscal 2020
Financial Results for 1st Half of Fiscal 2020 Bridgestone Corporation August 7, 2020
Slide 2: Agenda
１. Business and Financial Performance P.2 for 1st Half of Fiscal 2020 ２. Consolidated Projections for Fiscal 2020 P.14 ３. Revision of Dividend Forecast P.18 1/19
Slide 3: 1. Business and Financial Performance for 1st Half of Fiscal 2020
１. Business and Financial Performance for 1st Half of Fiscal 2020 2/19
Slide 4: Impacts of the Global COVID-19 Pandemic in the 1st Half of Fiscal 2020
Impacts of the Global COVID-19 Pandemic in the 1st Half of Fiscal 2020 Market Conditions Decreased demand for OE and replacement tires due to global economic stagnation stemming from state of emergency declarations by countries worldwide Particularly large depression in European and North Americ
Slide 5: Responses to Impacts of the Global COVID-19 Pandemic in the 1st Half of Fiscal 2020
Responses to Impacts of the Global COVID-19 Pandemic in the 1st Half of Fiscal 2020 ■ Flexible Crisis Response Measures Promotion of cash-oriented management: Flexible funding measures for securing sufficient liquidity → High credit ratings maintained despite impacts of global COVID-19 pandemic Mo
Slide 6: Business Environment Surrounding Bridgestone Group
Business Environment Surrounding Bridgestone Group Currency ● Stronger JPY against USD/EUR vs. PY Exchange 1USD=108yen, 1EUR=120yen (Ref.) 191H 1USD＝110yen, 1EUR＝124yen Raw Material ● Natural Rubber : Lower vs. PY Prices Crude Oil : Lower vs. PY Tire Demand ● Weaker global demand vs. PY due to COVID
Slide 7: Tire Sales Growth for 1st Half of Fiscal 2020
Tire Sales Growth for 1st Half of Fiscal 2020 PSR/LTR TBR ORR Global 72％ Global 78％ Ultra-Large 88％ (only REP) OE OE Global 63% Global 62% Large 81％ (OE / REP) (50% / 93％) Japan 75% Japan 88% Small & Medium 79% N. America 54% N. America 54% (OE / REP) (65% / 91%) Europe 66% Europe 61% China, Asia-Pa
Slide 8: Consolidated Results for 1st Half of Fiscal 2020
Consolidated Results for 1st Half of Fiscal 2020 (Yen in billions) 【IFRS】 2019 1H Results Q1 vs. PY (%) Q2 vs. PY (%) 2020 1H Results vs. PY (%) Revenue 1,739.9 752.2 (11) 603.2 (32) 1,355.5 (22) Adjusted Operating Profit 152.1 49.8 (39) (1.6) - 48.3 (68) Ratio 8.7% 6.6% (3.1) pp (0.3) % (8.1) pp 3.
Slide 9: Analysis of Adjusted Operating Profit for 1st Half of Fiscal 2020
Analysis of Adjusted Operating Profit for 1st Half of Fiscal 2020 Raw Materials Volume (Yen in billions) Price (*1) +17.0 (121.0) 180 *2 +10.0 incl. Conversion cost and 160 currency depreciation impacts in Latin America *1 Operating Depreciation/ Foreign 140 incl. Price increase against Expense Amor
Slide 10: Financial Results by Segment
Financial Results for 1st Half of Fiscal 2020 by Segment (Yen in billions) 【IFRS】 2019 2020 vs. PY (%) 1H Results 1H Results Consolidated Revenue 1,739.9 1,355.5 (22) Japan 436.8 357.3 (18) Americas 831.1 646.7 (22) Europe, Russia, Middle East, India and Africa 323.3 248.8 (23) China, Asia-Pacific 2
Slide 11: Financial Results by Product (Tire Business)
Financial Results for 1st Half of Fiscal 2020 by Product (Tire Business) (Yen in billions) 【IFRS】 2019 2020 vs. PY (%) 1H Results 1H Results Revenue 838.0 629.2 (25) Adjusted OP 76.4 9.8 (87) PS/LT * incl. retail and credit card business Ratio 9.1% 1.6% (7.5) pp Revenue 409.2 298.2 (27) Adjusted OP
Slide 12: Financial Results by Product (Diversified Products Business)
Financial Results for 1st Half of Fiscal 2020 by Product (Diversified Products Business) (Yen in billions) Sports / Cycle Biz 【IFRS】 Revenue: 32.1 (13%) Chemical & Industrial Products Biz Diversified Products Revenue: 104.0 (43%) Business Revenue: 244.7 Diversified Products Biz Adjusted OP: (9.2) in
Slide 13: B/S and C/F Highlights
B/S and C/F Highlights for 1st Half of Fiscal 2020 (Yen in billions) 【IFRS】 2020 1H Results (As of Jun. 30, 2020) vs. Dec. 31 2019 Total Assets 4,147.0 (130.1) Total Equity 2,229.5 (173.0) Equity Ratio (%) 52.7% (2.3)pp Interest-Bearing Debt 〈Net〉 456.8 +45.3 2020 1H Results vs. PY Cash Flows from O
Slide 14: Non-recurring Items for 1st Half of Fiscal 2020
Non-recurring Items for 1st Half of Fiscal 2020 (Yen in billions) Adjusted Items 28.5 Impacts of COVID-19 23.8 Impairment losses 11.9 : Incl. impairment of assets for business use in Russia Impact of plant shutdown 9.7 : In response to official requests and declarations Impact of cancellation of eve
Slide 15: 2. Consolidated Projections for Fiscal 2020
2. Consolidated Projections for Fiscal 2020 14/19
Slide 16: Assumptions of Business Environment Surrounding Bridgestone Group
Assumptions of Business Environment Surrounding Bridgestone Group ● Stronger JPY against USD and EUR vs. PY Currency Exchange 1USD=106yen, 1EUR=119yen (2H: 1USD=105yen, 1EUR=119yen) (Ref.) 19FY 1USD＝109yen, 1EUR＝122yen; Feb. Projection 1USD=108yen, 1EUR=121yen Raw Material ● Natural Rubber : Lower v
Slide 17: Consolidated Projections for Fiscal 2020
Consolidated Projections for Fiscal 2020 (Yen in billions) (Ref. Feb. 17, 2020 2019 2020 vs. PY (%) announcement） 【IFRS】 Results Projections 2020 Projections Revenue 3,507.2 2,700.0 (23) 3,550.0 Adjusted Operating Profit 335.7 100.0 (70) 360.0 Ratio 9.6% 3.7% (5.9)pp 10.1% Profit Attributable to Own
Slide 18: Analysis of Adjusted Operating Profit for Fiscal 2020
Analysis of Adjusted Operating Profit for Fiscal 2020 Volume Raw Materials (Yen in billions) (229.0) 400 +48.0 *2 Price (*1) Incl. conversion cost and 350 +0.0 currency depreciation impacts in Latin America *1 Operating Depreciation/ Foreign 300 Incl. price increase against Expense Amortization Exch
Slide 19: 3. Revision of Dividend Forecast
3. Revision of Dividend Forecast 18/19
Slide 20: Revision of Dividend Forecasts
Revision of Dividend Forecasts 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
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