Bridgestone Corporation · TSE:5108
Bridgestone — Q3 2022 Earnings Presentation
20 slides from Bridgestone's earnings presentation, Nov 10, 2022
Slide 1: Financial Results for 3rd Quarter of Fiscal 2022
Financial Results for 3rd Quarter of Fiscal 2022 Bridgestone Corporation November 10, 2022 Global CFO Senior Vice President and Executive Officer Masuo Yoshimatsu
Slide 2: Agenda
1. Business and Financial Performance ･･･ 3 for 3rd Quarter of Fiscal 2022 2. Consolidated Projections for Fiscal 2022 ･･･ 14 2/19
Slide 3: 1. Business and Financial Performance for 3rd Quarter of Fiscal 2022
1. Business and Financial Performance for 3rd Quarter of Fiscal 2022 3/19
Slide 4: Consolidated Financial Results for 9 months ended Sep 30, 2022
Consolidated Financial Results for 9 months ended Sep 30, 2022 (Yen in billions) 2021 9 months Results 2022 * Before 9 months vs. PY (%) After * Reclassification 1H vs. PY (%) 3Q vs. PY (%) Results Reclassification (disclosed last year) Revenue 2,401.8 2,317.7 1,886.3 +25 1,090.6 +35 2,976.9 +28 Adj
Slide 5: Overview of the Performance for 9 months ended September 30, 2022
Overview of the Performance for 9 months ended September 30, 2022 Business and Financial Highlights Achieved year-on-year sales growth in all products which include PS/LT, TB and OR further concentrating on the premium segment while the economic slowdown mainly in the US and Europe became apparent
Slide 6: Business Environment Surrounding Bridgestone Group
Business Environment Surrounding Bridgestone Group for 9 months ended Sep 30, 2022 Both USD and EUR appreciated against JPY compared with PY Currency Jan-Sep: 1USD = 129 yen, 1EUR = 136 yen (3Q: 1USD = 138 yen, 1EUR = 139 yen) Exchange (Reference) Jan-Sep’21: 1USD = 109 yen, 1EUR = 130 yen Raw
Slide 7: Tire Sales Growth for 9 months ended Sep 30, 2022
Tire Sales Growth for 9 months ended Sep 30, 2022 (vs. PY / vs. 2019) PSR/LTR TBR ORR vs. PY vs. 2019 vs. PY vs. 2019 vs. PY vs. 2019 Global 104% 92% Global 103% 98% Ultra-Large 108% 102% OE OE (only REP) Global 103% 81% Global 105% 92% Large 111% 115% Japan 99% 77% Japan 92% 97% OE 136% 150% N. Ame
Slide 8: Analysis of Adjusted Operating Profit
Analysis of Adjusted Operating Profit for 9 months ended Sep 30, 2022 (*2) Conversion (Yen in billions) Volume Cost （*3） +36.0 (39.0) Operating Mix Expenses LA Currency Currency Depreciation Others Discontinued Operations Raw Price (*1) +29.0 (67.0) +55.0 (11.0) +17.6 342.2 Reclassification Material
Slide 9: Consolidated Financial Results by Segment
Consolidated Financial Results by Segment for 9 months ended Sep 30, 2022 (Yen in billions) 2021 *1 2022 *1 vs. PY (%) 9 months Results 9 months Results Revenue 599.1 728.1 +22 Japan Adjusted OP 65.6 88.0 +34 Margin 10.9% 12.1% +1.1pp Revenue 1,046.8 1,437.8 +37 Americas Adjusted OP 147.4 188.4 +28
Slide 10: Consolidated Financial Results by Product (Tire Business)
Consolidated Financial Results by Product for 9 months ended Sep 30, 2022 (Tire Business) (Yen in billions) 2021 2022 vs. PY (%) 9 months Results 9 months Results Revenue 1,215.5 1,605.0 +32 PS/LT Adjusted OP 171.1 193.6 +13 * incl. retail and credit card business Margin 14.1% 12.1% (2.0)pp Revenue
Slide 11: Consolidated Financial Results by Business (Diversified Products Business)
Consolidated Financial Results by Business for 9 months ended Sep 30, 2022 (Diversified Products Business – Continuing Operations) (Yen in billions) Sports / Cycle Biz - Revenue: 52.4 - Adjusted OP: 0.8 - Margin: 1.5% Diversified Products Business Chemical & Industrial Products Biz - Revenue: 204.7
Slide 12: B/S and C/F Highlights for 3rd Quarter of Fiscal 2022
B/S and C/F Highlights for 3rd Quarter of Fiscal 2022 (Yen in billions) 2021 Results 2022 3Q Results vs. Dec. 31, 2021 (as of Dec. 31, 2021) (as of Sep. 30, 2022) Total Assets 4,574.9 5,131.4 +556.5 Total Equity 2,675.4 3,092.0 +416.6 Equity Ratio (%) 57.5% 59.3% +1.8pp Interest-Bearing Debt 〈Net〉 2
Slide 13: Adjustment Items and Loss from Discontinued Operations
Adjustment Items and Loss from Discontinued Operations for 9 months ended Sep 30, 2022 2022 9 months Results (Yen in billions) 1) Adjustment Items (Yen in billions) Revenue 2,976.9 Adjustment Items 35.0 Main Items Adjusted Operating Profit 342.2 Impairment losses and loss Losses related to Russian b
Slide 14: 2. Consolidated Projections for Fiscal 2022
2. Consolidated Projections for Fiscal 2022 14/19
Slide 15: Consolidated Projections (Revised)
Consolidated Projections for Fiscal 2022 (Revised) (Yen in billions) 2022 Projections 2022 Projections vs. Aug. 2021 Results vs. PY (%) (Disclosed in Aug.) (Revised) Projections (%) Revenue 3,246.1 3,950.0 4,050.0 +3 +25 Adjusted Operating Profit 394.3 450.0 470.0 +4 +19 Margin 12.1% 11.4% 11.6% +0.
Slide 16: Business Environment Assumptions
Business Environment Assumptions for Fiscal 2022 4Q Assumptions: 1USD = 135 yen, 1EUR = 135 yen Currency FY Assumptions: 1USD = 130 yen, 1EUR = 136 yen Exchange (Reference) FY Assumptions in August: 1USD＝124 yen, 1EUR＝131 yen Raw Material: Natural rubber prices are expected to rise moderately
Slide 17: Tire Sales Growth Projections
Tire Sales Growth Projections for Fiscal 2022 PSR/LTR TBR ORR vs. PY vs. PY vs. PY Global 101~105% Global 101~105% Ultra-Large 106~110% OE OE (only REP) Global 101~105% Global 101~105% Large 106~110% Japan 101~105% Japan 95~99% OE 131~135% N. America 106~110% N. America 100% REP 100% Europe 101~105%
Slide 18: Analysis of Adjusted Operating Profit
Analysis of Adjusted Operating Profit for Fiscal 2022 Russia: production/export suspension (8.0) China: lockdowns (12.0) (Yen in billions) Americas: cyber incident (22.0) Conversion One-off factors (42.0) Mix Volume Cost LA Currency Price +30.0 +10.0 (65.0) Operating Currency Others 470.0 Depreciati
Slide 19: Consolidated Projections by Segment (Revised)
Consolidated Projections by Segment for Fiscal 2022 (Revised) (Yen in billions) 2022 Projections 2021 Results vs. PY (%) (Revised) Revenue 873.0 1,020.0 +17 Japan Adjusted OP 117.0 128.0 +9 Margin 13.4% 12.5% (0.8)pp Revenue 1,454.6 1,930.0 +33 Americas Adjusted OP 190.6 253.0 +33 Margin 13.1% 13.1%
Slide 20: 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