Bridgestone Corporation · TSE:5108
Bridgestone — FY2021 Earnings Presentation
23 slides from Bridgestone's earnings presentation, Feb 15, 2022
Slide 1: Financial Results for Fiscal 2021
Financial Results for Fiscal 2021 Bridgestone Corporation February 15, 2022
Slide 2: 1. Business and Financial Performance for Fiscal 2021 ･･･ 2. Consolidated Projections for Fiscal
1. Business and Financial Performance for Fiscal 2021 ･･･ 2 2. Consolidated Projections for Fiscal 2022 ･･･ 14 3. Shareholder Returns ・・・ 20 1/21
Slide 3: 1. Business and Financial Performance for Fiscal 2021
1. Business and Financial Performance for Fiscal 2021 2/21
Slide 4: Overview of the Performance for Fiscal 2021
Overview of the Performance for Fiscal 2021 Business and Financial Highlights Achieved 2022 plan of 21MBP ahead of schedule. Global tire sales grew substantially, especially in the premium segment, and the Company achieved significant year-on-year growth in both revenue and profit. Achieved adju
Slide 5: Business Environment Surrounding Bridgestone Group
Business Environment Surrounding Bridgestone Group Currency Both USD and EUR appreciated against JPY compared with PY Exchange 1USD = 110 yen, 1EUR = 130 yen (Reference) FY20 1USD = 107 yen, 1EUR = 122 yen Raw Material Natural Rubber : prices remained high throughout the year. Prices Crude O
Slide 6: Tire Sales Growth for Fiscal 2021 (vs. PY / vs. 2019)
Tire Sales Growth for Fiscal 2021 (vs. PY / vs. 2019) PSR/LTR TBR ORR vs. PY vs. 2019 vs. PY vs. 2019 vs. PY vs. 2019 Global 108% 90% Global 114% 99% Ultra-Large 112% 93% OE OE (only REP) Global 103% 81% Global 124% 90% Large 137% 110% Japan 97% 79% Japan 119% 104% OE 236% 132% N. America 104% 80% N
Slide 7: Consolidated Financial Results for Fiscal 2021
Consolidated Financial Results for Fiscal 2021 (Yen in billions) 2020 Results 2021 *1 vs. PY (%) Before After 9 months *2 vs. PY (%) 4Q vs. PY (%) Results *1 Reclassification Reclassification *2 Revenue 2,994.5 2,695.2 2,317.4 +20 928.6 +20 3,246.1 +20 Adjusted Operating Profit 222.9 207.4 288.9 +15
Slide 8: Analysis of Adjusted Operating Profit for Fiscal 2021
Analysis of Adjusted Operating Profit for Fiscal 2021 (*2) (*3) (Yen in billions) Conversion Operating Cost Expenses Foreign Others +83.0 (79.0) Exch. LA Currency +49.9 394.3 Gain Depreciation Volume +20.0 (12.0) +110.0 *2 - Effect of Improvement in Genba operation at Raw Mix production sites +8.0 2
Slide 9: Consolidated Financial Results by Segment for Fiscal 2021
Consolidated Financial Results by Segment for Fiscal 2021 (Yen in billions) 2020 2021 vs. PY (％) Results Results Consolidated Revenue 2,695.2 3,246.1 +20 Japan 776.3 873.0 +12 Americas 1,163.9 1,454.6 +25 Europe, Russia, Middle East, India and Africa 550.4 693.9 +26 China, Asia-Pacific 323.6 386.9 +
Slide 10: Consolidated Financial Results by Product (Tire Business)
Consolidated Financial Results by Product for Fiscal 2021 (Tire Business) (Yen in billions) 2020 2021 vs. PY (%) Results Results Revenue 1,455.8 1,735.0 +19 Adjusted OP 121.8 246.6 +103 PS/LT * incl. retail and credit card business Margin 8.4% 14.2% +5.8pp Revenue 660.6 814.0 +23 Adjusted OP 57.0 88
Slide 11: Consolidated Financial Results by Business (Diversified Products Business)
Consolidated Financial Results by Business for Fiscal 2021 (Diversified Products Business – Continuing Operations) (Yen in billions) Sports / Cycle Biz - Revenue: 72.6 - Adjusted OP: 4.3 Diversified Products Business Chemical & Industrial - Revenue: 243.2 Products Biz - Revenue: 126.5 - Adjusted OP:
Slide 12: B/S and C/F Highlights for Fiscal 2021
B/S and C/F Highlights for Fiscal 2021 (Yen in billions) 2020 Results 2021 Results vs. Dec 31, 2020 (as of Dec 31, 2020) (as of Dec 31, 2021) Total Assets 4,189.3 4,574.9 +385.6 Total Equity 2,195.3 2,675.4 +480.1 Equity Ratio (%) 51.3% 57.5% +6.2pp Interest-Bearing Debt 〈Net〉 195.6 23.6 (172.0) 202
Slide 13: Adjustment Items and Profit from Discontinued Operations for Fiscal 2021
Adjustment Items and Profit from Discontinued Operations for Fiscal 2021 2021 Results (Yen in billions) 1) Adjustment Items (Yen in billions) Revenue 3,246.1 Adjustment Items 17.5 Main Items Adjusted Operating Profit 394.3 Business and plant Expenses relating to the closure and restructuring expense
Slide 14: Enablers for Execution: Reinforce Foundation for Financial Strategy
Enablers for Execution: Reinforce Foundation for Financial Strategy Establishment of extended Global CFO role : consolidate finance, business planning, procurement, IT and SCM functions Management with an awareness of capital cost and portfolio optimization : ROIC as a key management index (Yen
Slide 15: 2. Consolidated Projections for Fiscal 2022
2. Consolidated Projections for Fiscal 2022 14/21
Slide 16: Business Environment Assumptions for Fiscal 2022
Business Environment Assumptions for Fiscal 2022 Currency Assumption : 1USD = 112 yen, 1EUR = 127 yen Exchange Raw Material Assumes the unprecedented inflation for natural rubber and crude oil will continue, creating a Prices strong headwind REP : While demand growth in North America is expect
Slide 17: Tire Sales Growth Projections for Fiscal 2022
Tire Sales Growth Projections for Fiscal 2022 PSR/LTR TBR ORR vs. PY vs. PY vs. PY Global 106~110% Global 106~110% Ultra-Large 111~115% OE OE (only REP) Global 111~115% Global 101~105% Large 111~115% Japan 121~125% Japan 100% OE 136~140% N. America 116~120% N. America 100% REP 101~105% Europe 111~11
Slide 18: Consolidated Projections for Fiscal 2022
Consolidated Projections for Fiscal 2022 (Yen in billions) 2021 Results 2022 Projections vs. PY (%) Revenue 3,246.1 3,650.0 +12 Adjusted Operating Profit 394.3 425.0 +8 Margin 12.1% 11.6% (0.5)pp Profit Attributable to Owners of Parent 394.0 280.0 (29) - Continuing Operations 307.9 290.0 (6) - Disco
Slide 19: Analysis of Adjusted Operating Profit for Fiscal 2022
Analysis of Adjusted Operating Profit for Fiscal 2022 (Yen in billions) Conversion Operating 600 Volume Cost Expenses Foreign +85.0 +5.0 (80.0) Exch. LA Currency Gain Depreciation Mix Others 500 Price +10.0 (14.0) Raw +15.0 (40.3) Materials +195.0 425.0 400 394.3 (145.0) FX Sensitivity (FY) 300 USD
Slide 20: Consolidated Projections by Segment for Fiscal 2022
Consolidated Projections by Segment for Fiscal 2022 (Yen in billions) 2021 Results 2022 Projections vs. PY (%) Consolidated Revenue 3,246.1 3,650.0 +12 Japan 873.0 990.0 +13 Americas 1,454.6 1,660.0 +14 Europe, Russia, Middle East, India and Africa 693.9 730.0 +5 China, Asia-Pacific 386.9 460.0 +19
Slide 21: 3. Shareholder Returns
3. Shareholder Returns 20/21
Slide 22: Acquisition of Treasury Stock
Acquisition of Treasury Stock The Company has determined to acquire Treasury Stock of JPY 100 billion (up to) as an agile capital management based on our Capital Allocation Policy. Reasons of Acquisition of Treasury Stock The Company secures the internal reserves necessary "to rebuild earning powe
Slide 23: 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