Bridgestone Corporation · TSE:5108

Bridgestone — Morgan Stanley Global Automotive Conference 2004

23 slides from Bridgestone's conference presentation, Apr 8, 2004

  1. Slide 1: Morgan Stanley Global Automotive Conference 2004

    Morgan Stanley Global Automotive Conference 2004 April 8th, 2004 Bridgestone Corporation 1 Financial Summary 2003 2

  2. Slide 2: Consolidated Sales & Profit; Consolidated Balance Sheets

    Consolidated Sales & Profit Net Sales (yen in billion) Income (yen in billion) 2,500 Net Sales Net Income 120 100 2,000 80 1,500 60 1,000 40 500 20 0 0 1998 1999 2000 2001 2002 2003 ( Yen in billion) Net Sales 2, 237 2,086 2,007 2,134 2,248 2,303 Net Income 105 89 18 17 45 88 3 Consolidated Balance

  3. Slide 3: Consolidated Cash Flow; Cap-ex & Depreciation

    Consolidated Cash Flow (Yen in Billion) Cash flow from operation 67.4 145.9 269.0 258.1 Cash flow from investment (162.5) (122.7) (104.8) (146.9) Free cash flow (95.1) 23.1 164.2 111.1 5 Cap-ex & Depreciation yen in billion % to Sales 250 12% 200 10% 8% 150 6% 100 4% 50 2% 0 0% 95 96 97 98 99 00 01

  4. Slide 4: Strategic Business Growth with a Focus on Quality

    “Strategic Business Growth with a Focus on Quality” 7 Global Tire Production by Region Bridgestone Group Global Tire Production '000ton (Rubber ton base) 1600 Others Europe 1200 Americas 800 400 Japan 0 1998 1999 2000 2001 2002 2003 2004(F) 8

  5. Slide 5: Global Tire Production and Sales

    Global Tire Production and Sales Bridgestone Production & Sales Composition by Region (2003) Japanese market 16% Others 18% Japan Japan domestic (16%) Europe 36% Japan export (20%) 10% Americas Overseas 36% market 84% 9 Production Volume Growth 236 by Region 214 193 Production by Region (Rubber Ton

  6. Slide 6: Japan

    Regional Strategies 11 Japan 12

  7. Slide 7: Bridgestone Corporation Sales & Profit; Management Focus

    Bridgestone Corporation Non-consolidated Sales & Profit 800 752.2 740.6 741.0 765.6 735.0 20% 721.9 704.2 16.7% 16.9% Sales/Profit(Yen in billion) 600 16.9% 16.1% 15% Operating margin(%) 15.8% 13.8% 10.6% 400 10% 200 5% 0 0% 1998 1999 2000 2001 2002 2003 2004(F) Sales Operating income Operating marg

  8. Slide 8: Consumer Tire Marketing Strategy

    Management Focus Consumer Tire Marketing Strategy Average consumers Car enthusiasts Safety & Comfort High Performance & High Value-added Brand equity Improvement Safety & Comfort through Differentiation of “Bridgestone” brand and high value-added brand family channel Strong Bridgestone family channe

  9. Slide 9: Bridgestone Americas Sales & Profit

    Bridgestone Americas Sales & Profit 8,173 8,650 8,000 7,520 7,532 7,549 7,375 7,631 Sales/Profit (Dollar in million) 8% 7.4% 7.2% Operating margin(%) 6,000 6% 4,000 4% 2.6% 2.3% 2,000 2.3%2% 1.4% 0 0% -2,000 -2% -3.8% -4,000 -4% 1998 1999 2000 2001 2002 2003 2004(F) Sales Operating income Operating

  10. Slide 10: Bridgestone/Firestone North American Tire

    Bridgestone/Firestone North American Tire Consumer Tire Sales by Brand 100% 80% 60% 40% 20% 0% 2000 2001 2002 2003 2004(F) Bridgestone Firestone Associate 19 Bridgestone/Firestone North American Tire Consumer Brand Strategy Brand Conscious Active Shopper Value Seeker Price Price Secondary Primary As

  11. Slide 11: BFS Retail & Commercial Operations; Europe

    BFS Retail & Commercial Operations CANADA WESTERN ZONE COMMERCIAL MTA MIDWEST STORE FRANCHISE ZONE OPERATION NORTH EAST ZONE SOUTH EAST SOUTH ZONE CENTRAL ZONE POS: 2,300 GCR MORGAN 21 STORES TIRE Europe 22

  12. Slide 12: Bridgestone Europe Sales & Profit

    Bridgestone Europe Sales & Profit 2,280 2,127 10% 2,058 1,938 1,972 2,000 1,882 1,779 Sales/Profit (Euro in million) 8% Operating margin(%) 1,500 5.5% 5.7% 6% 5.1% 1,000 4% 3.6% 3.3% 3.2% 500 2% 2.0% 0 0% 1998 1999 2000 2001 2002 2003 2004(F) Sales Operating income Operating margin 23 Management Foc

  13. Slide 13: Competitive Retail Chain; Product Mix Improvement

    Competitive Retail Chain Establish and expand pan-European retail brand “FIRST STOP” number of stores 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2001 2002 2003 2004(F) 2008(F) 25 Product Mix Improvement Bridgestone Europe consumer tire sales by segment 100% High 75% performance tire 50% 25% 0%

  14. Slide 14: Production Capacity Expansion; China

    Production Capacity Expansion Truck tire Passenger 4,600 car tire 3,500/day 23,000 Poznan 2003.1 2005.12 Bethune 15,000 10,000/day Bilbao Rome Puente San Miguel Bari Burgos 2003.1 2004.12 2006.12 New proving ground (Open in June 2004) 27 China 28

  15. Slide 15: Sales Growth in China

    Sales Growth in China Sales Growth Index (2000=100) 400 350 300 250 200 150 100 50 0 1999 2000 2001 2002 2003 2004(F) Consolidated since Bridgestone Shenyang: 1999 Bridgestone Tianjin: 2000 Bridgestone Wuxi: 2004 29 Management Focus Brand image improvement Sales channel Production capacity enhanceme

  16. Slide 16: Brand Image improvement; Sales channel enhancement

    Brand Image improvement Retail outlets Shanghai Motor Show Dynamic Innovative Sophisticated F1 racing Outdoor Signboard in Shanghai TV Commercial 31 Sales channel enhancement # of outlets 5,000 4,500 Number of Model Shops 4,000 200 150 3,500 100 3,000 50 2003 2007(F) 0 Model shops 2003 2004(F) 2007(

  17. Slide 17: Production capacity expansion; Production & Technology

    Production capacity expansion Finished !! 2005 2003 2005 33 Production & Technology 34

  18. Slide 18: Capital Investment for Global Tire Sourcing

    Capital Investment for Global Tire Sourcing Poland China 21 Wuxi Spain 12 3 6.5 Tianjin Shenyang 1 7 Europe North Asia 5 America 2 Japan 5 Costa Rica Japan Latin 24 America 10 Indonesia 1 Thailand Passenger-car Tire Truck and Bus Tire Total investment: 97.6b yen (2003- (2003-2006) (approx. US$ 930m

  19. Slide 19: Investment Considerations

    Investment Considerations 37 Investment Considerations „Price Increase of Natural Rubber 34b yen impact is included in 2004 forecast. „Exchange Rate Assumption in 2004: 105 yen/US$, 120 yen/euro „Litigation „Negotiation with Labor Union in the US Negotiation began March 2003. „Tire Price Increase A

  20. Slide 20: Natural Rubber Price Trend; Litigation in U.S.

    Natural Rubber Price Trend Singapore Commodity Market Price US /KG 99/01 04/01 monthly average 2003/12 140 RSS#3 RSS#3:¢124.50 TSR20:¢123.58 TSR20 130 120 110 100 90 80 2001/12 RSS#3:¢48.01 70 TSR20:¢47.94 60 50 40 99/1 99/7 00/1 00/7 01/1 01/7 02/1 02/7 03/1 03/7 39 Litigation in U.S. Product Liabi

  21. Slide 21: Financial Targets: 2004 Financial Forecast

    Financial Targets 41 2004 Financial Forecast Net Sales (yen in billion) Profit (yen in billion) 2,500 Net Sales Net Income 120 100 2,000 80 1,500 60 1,000 40 500 20 0 0 1998 1999 2000 2001 2002 2003 2004 (Yen in Billion) Net Sales 2, 237 2,086 2,007 2,134 2,248 2,303 2,300 Net Income 105 89 18 17 45

  22. Slide 22: Share Buyback; Financial Targets

    Share Buyback Share repurchase from September 2003 to March 2004: Yen 50.0 billion, 33.7 million shares Share repurchase from April 2004 to March 2005: (Approved at the 85th shareholders’ meeting on March 30th) Yen 50.0 billion, 32 million shares Estimated effect ROE +0.8% EPS +7.2 yen 43 Financial

  23. Slide 23: Disclaimer

    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 no

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