Bridgestone Corporation · TSE:5108
Bridgestone — FY2022 Earnings Presentation
22 slides from Bridgestone's earnings presentation, Feb 16, 2023
Slide 1: Financial Results for Fiscal 2022
Financial Results for Fiscal 2022 Bridgestone Corporation February 16, 2023 Global CFO and Executive Director, G Finance Naoki Hishinuma
Slide 2: Agenda
1. Business and Financial Performance for Fiscal 2022 ･･･ 3 2. Consolidated Projections for Fiscal 2023 ･･･ 14 3. Shareholder Returns ･･･ 20 2/21
Slide 3: 1. Business and Financial Performance for Fiscal 2022
1. Business and Financial Performance for Fiscal 2022 3/21
Slide 4: Consolidated Financial Results for Fiscal 2022
Consolidated Financial Results for Fiscal 2022 （Yen in billions） 2022 2021 Results vs. PY (%) 9 months vs. PY (%) 4Q vs. PY (%) Results Revenue 3,246.1 2,976.9 +28 1,133.1 +22 4,110.1 +27 Adjusted Operating Profit 394.3 342.2 +19 140.4 +33 482.6 +22 Margin 12.1% 11.5% (1.0)pp 12.4% +1.0pp 11.7% (0.4
Slide 5: Overview of the Performance for Fiscal 2022
Overview of the Performance for Fiscal 2022 Business and Financial Highlights Revenue exceeded JPY 4 trillion for the first time by further strengthening the focus on the resilient premium areas and the strategic price management, thanks in part to the weak yen while the recession in Europe became
Slide 6: Business Environment Surrounding Bridgestone Group
Business Environment Surrounding Bridgestone Group Both USD and EUR appreciated against JPY compared with PY Currency 1USD = ¥132, 1EUR = ¥138 (4Q: 1USD = ¥142, 1EUR = ¥144) Exchange (Reference) FY21 1USD ＝ ¥110, 1EUR ＝ ¥130 Raw Material: Natural rubber prices fell sharply from 3Q onward. Crude
Slide 7: Tire Sales Growth for Fiscal 2022
Tire Sales Growth for Fiscal 2022 PSR/LTR TBR ORR vs PY vs 2019 vs PY vs 2019 vs PY vs 2019 Global 101% 91% Global 99% 98% Ultra-Large 107% 99% (REP) OE OE Global 103% 83% Global 104% 93% Large 110% 121% Japan 102% 81% Japan 92% 96% OE 130% 172% N. America 104% 82% N. America 101% 77% REP 103% 106%
Slide 8: Analysis of Adjusted Operating Profit for Fiscal 2022
Analysis of Adjusted Operating Profit for Fiscal 2022 Russia: production/export suspension (8.0) China: lockdowns (12.0) Americas: cyber incident (19.0) (Yen in billions) (*2) Conversion One-off factors (39.0) MIX Volume Cost (*3) (*1) LA Currency Price +33.0 +8.0 (69.0) Operating Currency Depreciat
Slide 9: Consolidated Financial Results by Segment for Fiscal 2022
Consolidated Financial Results by Segment for Fiscal 2022 (Yen in billions) 2021 Results 2022 Results vs. PY (%) Revenue 873.0 1,036.3 +19 Japan Adjusted OP 117.0 140.3 +20 Margin 13.4% 13.5% +0.1pp Revenue 1,454.6 1,988.0 +37 Americas Adjusted OP 190.6 251.2 +32 Margin 13.1% 12.6% (0.5)pp Revenue 6
Slide 10: Consolidated Financial Results by Product for Fiscal 2022 (Tire Business)
Consolidated Financial Results by Product for Fiscal 2022 (Tire Business) (Yen in billions) 2021 Results 2022 Results vs. PY (%) Revenue 1,735.0 2,232.2 +29 PS/LT Adjusted OP 246.6 274.0 +11 * incl. retail and credit card business Margin 14.2% 12.3% (1.9)pp Revenue 814.0 1,034.5 +27 Adjusted OP 88.0
Slide 11: Consolidated Financial Results by Business (Diversified Products Business)
Consolidated Financial Results by Business for Fiscal 2022 (Diversified Products Business – Continuing Operations) (Yen in billions) Sports / Cycle Biz Revenue: 66.3 Adjusted OP: (0.0) Margin: (0.0)% Diversified Products Business Chemical & Industrial Products Biz Revenue: 278.1 Revenue: 156.0 Adjus
Slide 12: B/S and C/F Highlights for Fiscal 2022
B/S and C/F Highlights for Fiscal 2022 (Yen in billions) 2021 Results 2022 Results vs. Dec 31, 2021 (as of Dec 31, 2021) (as of Dec 31, 2022) Total Assets 4,574.9 4,961.8 +386.9 Total Equity 2,675.4 3,012.5 +337.1 Equity Ratio (%) 57.5% 59.8% +2.3pp Interest-Bearing Debt 〈Net〉 23.6 248.3 +224.7 Exch
Slide 13: Adjustment Items and Loss from Discontinued Operations for Fiscal 2022
Adjustment Items and Loss from Discontinued Operations for Fiscal 2022 2022 Result (Yen in billions) 1) Adjustment Items (Yen in billions) Revenue 4,110.1 Adjustment Items 41.3 Main Items Adjusted Operating Profit 482.6 Impairment losses and loss Losses related to Russian business 18.4 on revaluatio
Slide 14: 2. Consolidated Projections for Fiscal 2023
2. Consolidated Projections for Fiscal 2023 14/21
Slide 15: Consolidated Projections for Fiscal 2023
Consolidated Projections for Fiscal 2023 (Yen in billions) 2022 Results 2023 Projections vs. PY (%) Revenue 4,110.1 4,150.0 +1 Adjusted Operating Profit 482.6 510.0 +6 Margin 11.7% 12.3% + 0.5pp Profit Attributable to Owners of Parent 300.4 335.0 +12 - Continuing Operations 305.5 340.0 +11 - Discont
Slide 16: Business Environment Assumptions for Fiscal 2023
Business Environment Assumptions for Fiscal 2023 Currency Assumptions : 1USD = ¥123, 1EUR = ¥133 Exchange Raw materials: Both natural rubber and crude oil are expected to rise from the levels of 2H 2022. Cost Raw Material increase is expected due to the inflation such as energy and labor costs a
Slide 17: Tire Sales Growth Projections for Fiscal 2023
Tire Sales Growth Projections for Fiscal 2023 PSR/LTR TBR ORR vs. PY vs. PY vs. PY Global 101~105% Global 106~110% Ultra-Large 101~105% OE OE (REP) Global 101~105% Global 106~110% Large 106~110% Japan 106~110% Japan 121~125% OE 106~110% N. America 111~115% N. America 106~110% REP 106~110% Europe 106
Slide 18: Analysis of Adjusted Operating Profit for Fiscal 2023
Analysis of Adjusted Operating Profit for Fiscal 2023 (Yen in billions) Conversion Volume Cost Operating MIX +51.0 (71.0) Expenses Price +40.0 (67.0) +253.0 Currency LA Currency Raw (51.0) Depreciation Others 482.6 Material (44.0) +25.4 510.0 (109.0) FX Sensitivity (*)including currency effect inclu
Slide 19: Consolidated Projections by Segment for Fiscal 2023
Consolidated Projections by Segment for Fiscal 2023 (Yen in billions) 2022 Results 2023 Projections vs. PY (%) Revenue 1,157.1 1.275.0 +10 Japan (*) Adjusted OP 150.6 160.0 +6 Margin 13.0% 12.5% (0.5)pp Revenue 1,988.0 2,010.0 +1 Americas Adjusted OP 251.2 270.0 +7 Margin 12.6% 13.4% +0.8pp Europe,
Slide 20: 3. Shareholder Returns
3. Shareholder Returns 20/21
Slide 21: Shareholder Returns
Shareholder Returns Basic Policy for the Appropriation of Profits Regarding the interests of shareholders as an important management priority, the Company follows a basic policy of strengthening our management base in preparation for future business developments while working to improve business r
Slide 22: 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