Bridgestone Corporation · TSE:5108
Bridgestone — Bridgestone Corp Ord — Q3 2024 Earnings Presentation
38 slides from Bridgestone's earnings presentation, Nov 11, 2024
Slide 1: Summary of Financial Results for 3Q 2024
Summary of Financial Results for 3Q 2024 Bridgestone Corporation Member of the Board Global CEO and Representative Executive Officer Shu Ishibashi November 11, 2024
Slide 2: Financial results for 3Q 2024 - Global Summary
Financial results for 3Q 2024 - Global Summary * PS: Passenger car tires, REP: Replacement tires, HRD: 18inch & above TB: Truck and bus tires OR: Off-the-road tires, AC:: Aircraft tires Urgent management priorities are to deal with “new threats” and “past negative legacies” • Aiming to secure and im
Slide 3: Financial results for 3Q 2024 – Summary by major segment
Financial results for 3Q 2024 – Summary by major segment Increase in revenue and decrease in profit vs. prior year: Despite an increase in revenue on JPY base due to the impacts from the currency Americas business exchange, there was a decrease in revenue & profit on local currency base with a huge
Slide 4: Bridgestone WEST: N. America
Summary of Financial Results for 3Q 2024 – Bridgestone WEST N. America 4/23
Slide 5: North America | Summary of financial results
North America | Summary of financial results for 3Q 2024 N. America business in total: Maintain and reinforce a solid foundation of premium tire business despite a decrease in profit vs. prior year Aim to improve profitability by launching new ENLITEN products, reinforcing FS brand (multi-brand stra
Slide 6: Demand & sales volume results: North America passenger car
Demand & sales volume results for 3Q 2024: North America | Passenger car total & passenger car high rim diameter tires Demand volume Sales volume Demand volume Sales volume OE Jan – Sep 2024 (vs. prior year) (vs. prior year) REP Jan – Sep 2024 (vs. prior year) (vs. prior year) 96 97 Member* 97 BS 93
Slide 7: Demand and sales volume results: North America truck & bus tires
Demand and sales volume results for 3Q 2024: North America | Truck & bus tires Demand volume Sales volume Demand volume Sales volume OE Jan – Sep 2024 (vs. prior year) (vs. prior year) REP Jan – Sep 2024 (vs. prior year) (vs. prior year) Member* 103 BS 110 104 demand TB TB 91 83 Total demand 117 FS
Slide 8: Bridgestone WEST: L. America
Summary of Financial Results for 3Q 2024 – Bridgestone WEST L. America 8/23
Slide 9: Latin America | Summary of financial results
Latin America | Summary of financial results for 3Q 2024 L. America business in total: Overcame the worst phase in Argentina, while becoming deficit due to the ongoing business deterioration in Brazil Accelerating further business restructuring & rebuilding and fixed cost reduction from 4Q through
Slide 10: Bridgestone WEST: Europe
Summary of Financial Results for 3Q 2024 – Bridgestone WEST Europe 10/23
Slide 11: Europe | Summary of financial results
Europe | Summary of financial results for 3Q 2024 Europe business: Europe business in total: Overcame the worst phase with a slow pace Increased revenue and profit vs. prior year Benefits from ensuring a continued focus on premium and promoting restructuring & rebuilding started contribution to fi
Slide 12: Bridgestone EAST: Specialties as premium tire solutions business
Summary of Financial Results for 3Q 2024 – Bridgestone EAST Specialties as premium tire solutions business (OR/AC/AG/MC) 12/23
Slide 13: Specialties as premium tire solutions business | Summary of financial results
Specialties as premium tire solutions business | Summary of financial results for 3Q 2024 Specialties （OR/AC/AG/MC） Specialties: Financial results for 3Q 2024 Revenue 477.2 B JPY 100% of PY Increased profit vs. prior year 111.0 OR Adj. Operating 108% Profit B JPY of PY Increased profitability vs. pr
Slide 14: Bridgestone EAST: Growing market: India
Summary of Financial Results for 3Q 2024 – Bridgestone EAST Growing market: India 14/23
Slide 15: Growing market: Reinforce India PS premium tire business
Growing market: Market leader position Reinforce India PS premium tire business Accelerate “premium & mass strategy” to solidify market leader position based on increasing premium sales volume, improving sales mix & increasing market share Cumulative total for 3Q 2024: Increase market share in PS-RE
Slide 16: Global Premium focus
Summary of Financial Results for 3Q 2024 Global Premium focus 16/23
Slide 17: Global Premium focus: Passenger car high rim diameter tires
Global Premium focus: Passenger car high rim diameter tires – Improve sales mix In the challenging business environment, continue to maintain a thorough focus on the PS HRD tires where there is a “tailwind“ of demand growth Further accelerate premium enhancement including expansion of “ultra”- H
Slide 18: Global Premium focus: Passenger car premium tires
Global Premium focus: Passenger car premium tires – Improve sales mix Ensure a thorough focus on premium tires linked with the expansion of ENLITEN, “new premium” on top of the growth in high rim diameter (HRD) tires Sales portion of PS premium tires for the year HRD tires (replacement / global) 6
Slide 19: Reinforce business quality: Global business cost reduction
Summary of Financial Results for 3Q 2024 Reinforce business quality: Global business cost reduction 19/23
Slide 20: Global business cost reduction across the entire value chain
Reinforce business quality: Global business cost reduction across the entire value chain While continuing challenging business performance, steady global initiatives at Genbutsu-Genba supported the Group’s performance Global procurement Raw material: Contribute to the Group’s performance through
Slide 21: Summary of Financial Results by business portfolio
Summary of Financial Results by business portfolio for 3Q 2024 21/23
Slide 22: Financial performance by business portfolio
Financial performance by business portfolio for 3Q 2024 Solutions business as growth business: Secured an increase in revenue & profit Premium tire business Core business vs. prior year by expanding commercial BtoB solutions, in particular, mining & aviation solutions 2,171.6 63% Revenue portion R
Slide 23: IR communication plan
IR communication plan February 17, 2025 (Mon) (plan) Summary of Financial Results for 2024 / Fiscal 2025 Guidance Mid Term Business Plan (2024-2026) Progress Update 23/23
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
Slide 25: Financial Results for 3rd Quarter of Fiscal 2024
Financial Results for 3rd Quarter of Fiscal 2024 Bridgestone Corporation Global CFO and Executive Director, G Finance Bridgestone Corporation Naoki Hishinuma November 11, 2024
Slide 26: Agenda
1. Business and Financial Performance for Q3 of Fiscal 2024 ･･･ 3 2. Consolidated Guidance for Fiscal 2024 ･･･ 11 2/12
Slide 27: 1. Business and Financial Performance for Q3 of Fiscal 2024
1. Business and Financial Performance for Q3 of Fiscal 2024 3/12
Slide 28: Consolidated Financial Results of Q1-Q3 FY2024
Consolidated Financial Results of Q1-Q3 FY2024 （Yen in billions） 2023 2024 vs PY (%) Q1-Q3 Q3 Q1-Q3 1H vs PY (%) vs PY (%) (3 months) 3,198.1 2,176.8 +4 1,092.6 (0) 3,269.4 +2 (*1) Revenue Adjusted Operating Profit (*1) 362.3 229.2 (4) 124.0 +0 353.2 (3) Margin 11.3% 10.5% (0.8) pp 11.4% +0.0 pp 10.
Slide 29: Analysis of Adjusted Operating Profit of Q1-Q3 FY2024 (vs. PY)
Analysis of Adjusted Operating Profit of Q1-Q3 FY2024 (vs. PY) (Yen in billions) Raw L. America Materials Price MIX Volume Conversion Currency Business* 362.3 +4.0 (8.0) +9.0 (36.0) Costs Operating +51.0 (37.0) Others +17.9 353.2 Expenses (16.0) - incl. negative price impact from +6.0 -incl. - UPI m
Slide 30: Consolidated Financial Results by Segment of Q1-Q3 FY2024
Consolidated Financial Results by Segment of Q1-Q3 FY2024 (Yen in billions) 2023 2024 vs. PY (%) Q1-Q3 Q1-Q3 Revenue 894.9 877.8 (2) Japan Adjusted OP 141.0 135.6 (4) Margin 15.8% 15.4% (0.3) pp Revenue 413.6 393.3 (5) Asia, Pacific, India and Adjusted OP 39.0 42.1 +8 China (*) Margin 9.4% 10.7% +1.
Slide 31: Consolidated Financial Results by Product of Q1-Q3 FY2024
Consolidated Financial Results by Product of Q1-Q3 FY2024 (Yen in billions) 2023 2024 (*) vs. PY (%) Q1-Q3 Q1-Q3 Revenue 1,747.0 1,816.0 +4 PS/LT Adjusted OP 188.8 193.9 +3 (incl. retail & credit card business) Margin 10.8% 10.7% (0.1) pp Revenue 751.7 750.9 (0) Adjusted OP 60.4 43.6 (28) TB (incl.
Slide 32: Diversified Products by Business of Q1-Q3 FY2024
Diversified Products by Business of Q1-Q3 FY2024 (Yen in billions) Sports & Cycle Biz vs. PY (%) Revenue: 44.5 (4) Diversified Adjusted OP: (1.1) - Products Business Chemical & Industrial vs. PY (%) Margin: (2.5)% (5.2)pp Products Biz vs. PY (%) Revenue: 225.3 +1 Diversified Products Biz Revenue: 12
Slide 33: Adjustment Items of Q1-Q3 FY2024
Adjustment Items of Q1-Q3 FY2024 Q1-Q3 FY2024 Results (Yen in billions) Revenue 3,269.4 Adjusted Operating Profit 353.2 （Yen in billions） Adjustment Items (*1) (23.9) Adjustment Items (*1) (23.9) Major Items Gain on sales of fixed assets (company housing) (63.3) Operating Profit 377.1 Impairment los
Slide 34: B/S and C/F Highlights for Q3 of Fiscal 2024
B/S and C/F Highlights for Q3 of Fiscal 2024 (Yen in billions) 2023 Results 2024 Q3 Results (as of Dec 31, 2023) (as of Sep 30, 2024) vs. Dec 31, 2023 Total Assets 5,427.8 5,380.9 (46.9) Total Equity 3,405.4 3,527.1 +121.7 Equity Ratio (%) 61.8% 64.6% +2.8pp Interest-Bearing Debt 〈Net〉 105.6 164.9 +
Slide 35: 2. Consolidated Guidance for Fiscal 2024
2. Consolidated Guidance for Fiscal 2024 11/12
Slide 36: Consolidated Guidance for Fiscal 2024
Consolidated Guidance for Fiscal 2024 (Yen in billions) 2024 Guidance vs. PY Forecast of Business Environment (FY2024) 2023 Results (Aug 9, 2024 (%) Announcement) Currency Exchange Revenue 4,313.8 4,410.0 +2 Currency Exchange Assumption for FY2024: * Adjusted Operating Profit 480.6 490.0 +2 1USD=¥
Slide 37: 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
Slide 38: Appendix: Natural rubber, crude oil and tire demand trends
APPENDIX Market trend of natural rubber and crude oil (Average) Tire Demand of Q1-Q3 (unit base% vs. PY) 2023 2024 Estimated by Bridgestone PSR/LTR TBR Q1 Q2 Q3 Q4 Q1 Q2 Q3 OE REP OE REP Natural Rubber 137 135 134 145 157 168 175 Japan 91% 94% 105% 87% 〈TSR20〉(*1)（￠/kg） Natural Rubber (*2) (*2) 161