Bridgestone Corporation · TSE:5108
Bridgestone — Bridgestone Corp Ord — FY2024 Earnings Presentation
51 slides from Bridgestone's earnings presentation, Feb 17, 2025
Slide 1: Summary of Financial Results 2024 / Business Plan for 2025
Summary of Financial Results 2024 / Business Plan for 2025 Bridgestone Corporation Member of the Board Global CEO and Representative Executive Officer Shu Ishibashi February 17, 2025
Slide 2: Summary of Financial Results for 2024
Summary of Financial Results for 2024 Business plan for 2025 2/29
Slide 3: Summary of 2024 consolidated financial results
Summary of 2024 consolidated financial results 2024 “New threats” • Structure changes in the automotive industry due to the rise of Chinese EVs etc. Business environment Acceleration of tire industry structure changes • Structure changes in the tire industry caused by an increase in low-end imports
Slide 4: Summary of 2024 consolidated financial results: Global overview
Summary of 2024 consolidated financial results: Global overview 21MBP 24MBP 2024 forecast（August 2024 guidance） 2024 results Return to a strong Bridgestone Remaining issues Currency exchange USD=152 JPY capable of adapting to change New issues USD=146JPY / EUR=157JPY EUR=164 JPY USD 121 JPY 109 JPY
Slide 5: Priority Management Issues Area
Summary of financial results for 2024 ―Priority Management Issues Area 5/29
Slide 6: North America
North America | Summary of financial results for 2024 / Business plan for 2025 N. America business in total Summary of 2024 Increase in revenue and Business plan for 2025 profit vs. prior year Promote profitability improvement 2024 Increased in both revenue and profit vs. prior year with the thr
Slide 7: Latin America
Latin America | Summary of financial results for 2024 / Business plan for 2025 Latin America business in total Summary of 2024 2024 Decrease in revenue and profit vs. prior year Brazil Turn deficit Revenue 322.2B JPY 97% of PY 2024 Despite overcoming the worst phase in Argentina, 117.1 89% busines
Slide 8: Europe
Europe | Summary of financial results for 2024 / Business plan for 2025 Europe business Summary of 2024 Increase in revenue and profit vs. prior year 2024 Overcame the worst phase Revenue 701.5B JPY 102 % of PY Continued focus on premium and started performance improvement by rebuilding (2nd stage)
Slide 9: Premium tire & solutions business in specialties
Premium tire & solutions business in specialties | Summary of financial results for 2024 / Business plan for 2025 Summary of 2024 Increase in profit vs. prior year Specialties（OR/AC/AG/MC） OR 623.6 B JPY 2024 2024 Expanded solutions on top of solid sales (sales volume of ultra-large tires: 100% vs.
Slide 10: Performance by business portfolio
Summary of 2024 consolidated financial results: Performance by business portfolio Premium tire business as core business: Secured AOP approx.14％ despite in Premium tire business Core business challenging business environment Solutions business as growth business: Secured an increase in revenue &
Slide 11: Business Plan for 2025: The year of Emergency and Crisis Management
Summary of Financial Results for 2024 Business Plan for 2025: “The year of Emergency and Crisis Management” 11/29
Slide 12: Our pathway from 2025 to a strong Bridgestone
Our pathway from 2025 - the year of emergency and crisis management to A “strong Bridgestone”, Reinforcing Earning Power, The “True Next Stage” in 2026 2026: True next stage 2025: The year of Emergency and Crisis Management Create good Create good Create good Create new business sowing business qual
Slide 13: Our pathway from 2025 to a strong Bridgestone
Our pathway from 2025 - the year of emergency and crisis management to A “strong Bridgestone”, Reinforcing Earning Power, The “True Next Stage” in 2026 2026: True next stage 2025: The year of Emergency and Crisis Management Create good Create good Create good Create new business sowing business qual
Slide 14: Business restructuring & rebuilding (2nd stage): Global overview
Business restructuring & rebuilding (2nd stage) Progress update : Global overview Global ”Tackle past negative legacies squarely without delay” “Need to be further strengthened at an even higher level in 2025” from “2024 plan” 1st Stage 2020-2021 21MBP ― Planned approx. 40% decrease from approx. 160
Slide 15: Business restructuring & rebuilding: WEST
Business restructuring & rebuilding (2nd stage) Progress update : WEST (N. America & L. America and Europe) Rebuilding of Europe business Optimization of the business footprints in the U.S. : build foundation of “growth with quality” “Transform the shape of Europe business” Strengthen competitiv
Slide 16: Evolve into a new & true glocal management structure
Evolve into a new & true glocal management structure: Promote management with stricter discipline Clarify the “business responsibility (profit & loss responsibility)” of BRIDGESTONE WEST & EAST and the “cross-functional & global optimization responsibility” that pursues global optimization By ensu
Slide 17: Our pathway from 2025 to a strong Bridgestone
Our pathway from 2025 - the year of emergency and crisis management to A “strong Bridgestone”, Reinforcing Earning Power, The “True Next Stage” in 2026 2026: True next stage 2025: The year of Emergency and Crisis Management Create good Create good Create good Create new business sowing business qual
Slide 18: 2025 Offense: Premium tire business
2025 “Offense” Premium tire business – Premium focus & acceleration of global business cost reduction initiatives Strengthen an approach to premium vehicle & OEMs, prestige OEMs and premium EVs based on value creation through “ultimate customization” enabled by ENLITEN technology (OEMs in Japan, E
Slide 19: 2025 Offense: Markets to grow
2025 “Offense” Markets to grow Toward “Growth with quality” U.S. India Commercial BtoB solutions Rebuilding of consumer business Premium mass strategy Mining, Aviation and truck & bus “Multi-brand strategy” Amplify value Amplify trust Amplify data of Dan-Totsu with customers value products Real x Di
Slide 20: Business plan for 2025 – Global overview
Business plan for 2025 – Global overview 20/29 Confidential SS1
Slide 21: 2025 Business plan: Global overview
2025 Business plan: Global overview 21MBP 24MBP Year of emergency True Return to a strong Bridgestone Remaining issues and crisis capable of adapting to change New issues management next stage Currency USD 121JPY 109JPY 107JPY 110JPY 132JPY 141JPY 152JPY 145JPY 150JPY 2025 Plan Increase profit vs. p
Slide 22: 2025 Business plan: Assumptions
2025 Business plan: Assumptions Assumption for business environment: Need to respond continuously to “new threads” Business - Structure changes in the automotive industry due to the rise of Chinese EVs environment - Acceleration of structural changes in market, industry, and profitability of tir
Slide 23: 2025 Business plan: By business portfolio
2025 Business plan: By business portfolio Premium tire business as core business: Plan the profit margin of approx. 14% under challenging business environment. Premium tire business Core business Solutions business as growth business: Increase profitability in “strategic business” commercial Bto
Slide 24: Resource allocation
Resource allocation 24/29 Confidential SS1
Slide 25: Resource allocation: Capital expenditure / R&D expenses
2024 performance summary / 2025 business plan Resource allocation: Capital expenditure / R&D expenses “Strengthen prioritization” Capital expenditure Capital expenditure (B JPY) 5,000 approx. approx. 2024 summary 420.0 406.0 400.0level Ordinary investments Based on the business environmental changes
Slide 26: Bridgestone Way to Contribute to our Stakeholders
“Bridgestone Way” to Contribute to our Stakeholders - “Serving Society with Superior Quality” Maximize our contribution to all stakeholders Employees Enhance talent creativity and productivity with a lean structure Shareholders Increase the amount of talent investment per person and Enhance ca
Slide 27: 2025 Reinforce capital policy & shareholder return
2025 Reinforce Capital policy & share holder return –Toward the Next Stage in the ‘Bridgestone Way’ as a Guiding Principle Sustainable enhancement of corporate value - toward the “true next stage” aiming for “growth with quality” • Pursue working and business quality enhancement based on “Bridgest
Slide 28: Capital allocation to support Growth with quality
Capital allocation to support “Growth with quality” “The year of emergency and crisis management” – Considering the business environmental changes from 24MBP, thoroughly select strategic resources to “Lay foundation for future growth” based on “Reinforcing earning power,” leading to “enhance share
Slide 29: A strong Bridgestone, Reinforcing Earning Power
Toward “True next stage” With “Defense” and “Offense”, we will pave the way forward to A “strong Bridgestone” Reinforcing Earning Power The “True Next Stage” in 2026 29/29
Slide 30: Forward-looking statements
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 31: Appendix
Appendix Appendix BRIDGESTONE
Slide 32: Business plan for 2025 – Priority items
Appendix Business plan for 2025 – Priority items 32/29
Slide 33: Global premium focus: Passenger car high rim diameter tires
Appendix <Offense> Expand Dan-Totsu product & enhance Dan-Totsu product power Global premium focus: Passenger car high rim diameter tires – Improve sales mix In the challenging business environment, based on Dan-Totsu product power, continue to maintain a thorough focus on the PS HRD tires where t
Slide 34: Global premium focus: Passenger car premium tires
Appendix <Offense> Expand Dan-Totsu product & enhance Dan-Totsu product power 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 Sal
Slide 35: Expansion of ENLITEN for passenger car (original equipment)
Appendix <Offense> Expand Dan-Totsu product & enhance Dan-Totsu product power Expansion of “new premium” ENLITEN for passenger car (original equipment) *OE: Original equipment, REP: Replacement tires Expand OE fitment based on value creation through “ultimate customization” enabled by ENLITEN tech
Slide 36: Expansion of ENLITEN for passenger car (replacement)
Appendix <Offense> Expand Dan-Totsu product & enhance Dan-Totsu product power Expansion of “new premium” ENLITEN for passenger car (replacement) ※PS: Passenger car tires, LT: Light truck & bus tires Strategic product planning for “new premium” ENLITEN Expansion plan for PS & LT* replacement tires •
Slide 37: Reinforce steady global business cost reduction
Appendix <Offense> Reinforce steady global business cost reduction – Bridgestone DNA While continuing challenging business performance, steady global initiatives at Genbutsu-Genba supported the Group’s performance Accelerate the benefit generation in 2025 24MBP (2024-2026) target: A level that
Slide 38: Toward Growth with quality – Markets to Grow
Appendix <Offense> Toward “Growth with quality” – Markets to Grow North America, India Tire solutions for mining vehicles and aviation (commercial BtoB solutions) 38/29
Slide 39: Toward growth with quality: India & U.S.
Appendix <Offense>Toward “growth with quality”: India & U.S. U.S. | Rebuilding of consumer business India | Premium mass strategy “Multi-brand strategy” Execute strategic investment in production capacity expansion of PS premium tires at Pune plant and quality enhancement in Indore plant Invest am
Slide 40: U.S. business – Footprints + Overview
Appendix U.S. business – Footprints +Overview * Footprints and employees : As of 2024 end * Revenue, Adj. operating profit and production ratio for local production for local sales: Actual of 2024 fiscal year Footprints Revenue/ Adj. operating profit (N. America: U.S. and Canada) Headquarters for
Slide 41: Commercial BtoB solutions (1): Mining solutions
Appendix <Offense> Mobility tech business Strategic business Commercial BtoB solutions business (1): Mining solutions Realize “amplifying value of Dan-Totsu products”, “amplifying trust with customers”, and “amplifying data value” by being attentive to customers’ pain points and solving them with
Slide 42: Mining solutions: co-creation project with KOMATSU
Appendix <Offence> Commercial BtoB solutions (1): Mining solutions Mobility tech business Started the demonstration experiment of a co-creation project with KOMATSU Strategic business for providing new solutions to mining companies Propose an appropriate tire usage based on the real-time exchange
Slide 43: Aviation solutions and solutions for truck & bus
Appendix <Offense> Commercial BtoB solutions business (2) Mobility tech business Aviation solutions and solutions for truck & bus Strategic business Based on the trust with customers and partners, amplify the value of Dan-Totsu products combining real & digital to solve customers’ pain points and
Slide 44: Build a sustainable premium brand
Appendix <Offense>Build a “sustainable premium” brand Start the initiatives toward building a “sustainable premium” brand with sustainable global motorsports at the core Establish a new motorsports management structure | Place the motorsports organization (Vice President and Senior Officer) under
Slide 45: Exploratory business: Sowing new seeds 1/2
Appendix Exploratory business: Sowing new seeds - With providing social value & sustainability at the core 1/2 *NEDO: New Energy and Industrial Technology Development Organization Enhance exploration of business model based on “co-creation” with external partners Recycle “Renew” tires to raw mater
Slide 46: Exploratory business: Sowing new seeds 2/2
Appendix Exploratory business: Sowing new seeds - With providing social value & sustainability at the core 2/2 AirFree Next-Generation Tire that does not need air-filling “Committed to nonstop mobility” in local communities Empowering mobility in local communities and contribute to sustainability in
Slide 47: Enhance talent creativity
Appendix Enhance talent creativity 47/29
Slide 48: Progress update toward enhancing talent creativity
Appendix Progress update toward enhancing talent creativity “Reinforce talent investment, increase added value and create a virtuous cycle of value creation” – drive initiatives to enhance talent creativity while also working on improving productivity to enable continuous investment in talent 2023
Slide 49: Sustainability
Appendix Sustainability 49/29
Slide 50: Results in 2024 & plans for 2025 Sustainability
Appendix Results in 2024 & plans for 2025 Sustainability – Building a foundation for sustainable value creation 2023 2024 (preliminary) 2025 plan Mid-long term target Carbon neutrality CO2 emission reduction (Scope1,2) vs. 2011 57% Approx. 59% Continuous reinforcement Further focus on improvement of
Slide 51: Forward-looking statements
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