Bridgestone Corporation · TSE:5108
Bridgestone — FY2024 Earnings Presentation
22 slides from Bridgestone's earnings presentation, Feb 17, 2025
Slide 1: Financial Results for Fiscal 2024
Financial Results for Fiscal 2024 Bridgestone Corporation Global CFO and Executive Director, G Finance Bridgestone Corporation Naoki Hishinuma February 17, 2025
Slide 2: Agenda
1. Business and Financial Performance for Fiscal 2024 ･･･ 3 2. Consolidated Guidance for Fiscal 2025 ･･･ 11 3. Financial Strategy & Shareholder Returns ・・・ 15 2/19
Slide 3: 1. Business and Financial Performance for Fiscal 2024
1. Business and Financial Performance for Fiscal 2024 3/19
Slide 4: Consolidated Financial Results for Fiscal 2024
Consolidated Financial Results for Fiscal 2024 （Yen in billions） 2023 Results Q4 2024 Results vs. PY (%) 9months vs. PY (%) vs. PY (%) (3 months) Revenue 4,313.8 3,269.4 +2 1,160.7 +4 4,430.1 +3 Adjusted Operating Profit 480.6 353.2 (3) 130.1 +10 483.3 +1 Margin 11.1% 10.8% (0.5) pp 11.2% +0.6 pp 10
Slide 5: Analysis of Adjusted Operating Profit for Fiscal 2024 (vs. PY)
Analysis of Adjusted Operating Profit for Fiscal 2024 (vs. PY) (Yen in billions) Raw L. America Materials Price MIX Volume Currency Business* Others 480.6 Conversion (11.0) (6.0) +18.0 (41.0) Costs Operating +59.0 (41.0) +30.7 483.3 Expenses (21.0) - incl. negative +15.0 -incl. - UPI price impact fr
Slide 6: Consolidated Financial Results by Segment for Fiscal 2024
Consolidated Financial Results by Segment for Fiscal 2024 (Yen in billions) 2023 2024 vs. PY (%) Results Results Revenue 1,242.4 1,226.1 (1) Japan Adjusted OP 206.5 187.3 (9) Margin 16.6% 15.3% (1.3) pp Revenue 551.5 529.7 (4) Asia, Pacific, India and Adjusted OP 55.2 58.5 +6 China (*) Margin 10.0%
Slide 7: Consolidated Financial Results by Product for Fiscal 2024
Consolidated Financial Results by Product for Fiscal 2024 (Yen in billions) 2023 2024 (*) vs. PY (%) Results Results Revenue 2,376.5 2,485.9 +5 PS/LT Adjusted OP 273.7 282.3 +3 (incl. retail & credit card business) Margin 11.5% 11.4% (0.2) pp Revenue 1,008.3 1,022.8 +1 Adjusted OP 57.8 57.9 +0 TB (i
Slide 8: Diversified Products by Business for Fiscal 2024
Diversified Products by Business for Fiscal 2024 (Yen in billions) Sports & Cycle Biz vs. PY (%) Revenue: 58.9 (3) Diversified Adjusted OP: (2.2) - Products Business Chemical & Industrial vs. PY (%) Margin: (3.7)% (4.9)pp Products Biz vs. PY (%) Revenue: 297.9 (0) Diversified Products Biz Revenue: 1
Slide 9: Adjustment Items for Fiscal 2024
Adjustment Items for Fiscal 2024 2024 Results (Yen in billions) Revenue 4,430.1 Adjusted Operating Profit 483.3 （Yen in billions） Adjustment Items (*1) 40.0 Adjustment Items (*1) 40.0 Major Items Gain on sales of fixed assets (company housing) (63.3) Operating Profit 443.3 Impairment losses of EU TB
Slide 10: B/S and C/F Highlights for Fiscal 2024
B/S and C/F Highlights for Fiscal 2024 (Yen in billions) 2023 Results 2024 Results vs. Dec 31,2023 (as of Dec 31, 2023) (as of Dec 31, 2024) vs. Dec 31, 2023 (excl. FX) Total Assets 5,427.8 5,723.5 +295.7 (98.9) Cash and cash equivalents 724.6 706.7 (17.9) (57.6) (monthly sales) 2.0 months 1.9 month
Slide 11: 2. Consolidated Guidance for Fiscal 2025
2. Consolidated Guidance for Fiscal 2025 11/19
Slide 12: Consolidated Guidance for Fiscal 2025
Consolidated Guidance for Fiscal 2025 （Yen in billions） vs. PY (%) 2024 Results 2025 Guidance vs. PY (%) excl. FX Revenue 4,430.1 4,330.0 (2) +2 Adjusted Operating Profit 483.3 505.0 +4 +11 Margin 10.9% 11.7% +0.8 pp +1.0 pp Profit Attributable to Owners of Parent 285.0 253.0 (11) ROIC 8.2% 9.2% +1.
Slide 13: Analysis of Adjusted Operating Profit for Fiscal 2025 (vs. PY)
Analysis of Adjusted Operating Profit for Fiscal 2025 (vs. PY) Conversion Operating (Yen in billions) Volume Costs Expenses L. America MIX (5.0) Currency Raw +34.0 (20.0) Business Others Price +20.0 (33.0) 483.3 Materials (29.0) +59.0 +21.0 (25.3) 505.0 - UPI (margin impact) - incl. favorable (29.0)
Slide 14: Consolidated Guidance by Segment for Fiscal 2025
Consolidated Guidance by Segment for Fiscal 2025 (Yen in billions) vs. PY (%) 2024 Results 2025 Guidance vs. PY (%) excl. FX Revenue 1,226.1 1,260.0 +3 +6 Japan Adjusted OP 187.3 195.0 +4 +16 Margin 15.3% 15.5% +0.2 pp +1.5 pp Revenue 529.7 535.0 +1 +6 Asia, Pacific, India Adjusted OP 58.5 59.0 +1 +
Slide 15: 3. Financial Strategy & Shareholder Returns
3. Financial Strategy & Shareholder Returns 15/19
Slide 16: Bridgestone's Initiatives for Sustainable Corporate Value Enhancement
Bridgestone’s Initiatives for Sustainable Corporate Value Enhancement “Profitability Improvement” “Growth Investments” “Financial Strategy” are the keys to commit Corporate Value Enhancement Toward the next stage of financial strategy with “Uniqueness of Bridgestone” Profitability Improvement Fi
Slide 17: Toward Optimal Balance Sheet
Toward Optimal Balance Sheet With an increase in retained earnings by steady improvements of the business quality, combined with the market environments such as exchange rates, financial soundness has improved at a faster than expected pace, reaching an equity ratio of 65% (as of the end of 2024)
Slide 18: 2025 Capital Policy
2025 Capital Policy Share Buybacks In 24MBP, we aim to achieve sustainable growth through “strategic growth investment” for reinforcing earning power, focus on value creation, and build a sustainable premium brand, by allocating resources from both “defensive” and “offensive” perspectives. 1) Wi
Slide 19: Dividend – Shareholder Returns
Dividend – Shareholder Returns Dividend Policy Previously, as part of our basic dividend policy, we have set a target of consolidated dividend payout ratio as 40%. Though, in order to enhance shareholder returns, we will update the payout ratio into “50%”. 【New Basic Dividend Policy】 The basic polic
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
Slide 21: Appendix 1: Market Trend of Natural Rubber and Crude Oil; Tire Demand
APPENDIX 1 Market Trend of Natural Rubber and Crude Oil (average) Tire Demand for Fiscal 2024 (unit base% vs. PY) 2023 2024 Estimated by Bridgestone PSR/LTR TBR Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY OE REP OE REP Natural Rubber Japan 91% 99% 100% 98% 〈TSR20〉(*1) 137 135 134 145 138 157 168 175 196 174 （￠/kg
Slide 22: Appendix 2: Tire Sales Growth and Demand for 2025 Guidance
APPENDIX 2 Tire Sales Growth of PSR/LTR TBR Forecast of Raw Materials for 2025 2025 Guidance (vs. PY) vs. PY vs. PY Global (OE+REP) 100% 100% The feedstock price of raw materials for natural OE REP OE REP rubber is expected to increase from PY. Global 90~94% 101~105% 100% 100% / Japan 95~99% 106~1