Bridgestone Corporation · TSE:5108
Bridgestone — FY2020 Earnings Presentation
21 slides from Bridgestone's earnings presentation, Feb 16, 2021
Slide 1: Financial Results for Fiscal 2020
Financial Results for Fiscal 2020 Bridgestone Corporation February 16, 2021
Slide 2: Agenda
1. Business and Financial Performance for Fiscal 2020 ･･･ 2 2. Consolidated Projections for Fiscal 2021 ･･･ 13 1/19
Slide 3: 1. Business and Financial Performance for Fiscal 2020
1. Business and Financial Performance for Fiscal 2020 2/19
Slide 4: Market Conditions and Key Initiatives in 4th Quarter of Fiscal 2020
Market Conditions and Key Initiatives in 4th Quarter of Fiscal 2020 Market Conditions in 4th Quarter Decline in demand due to the resurgence of COVID-19 was limited. Demand recovery trend from 3rd quarter continued, especially in Truck & Bus tires. • Demand in Europe and the US softened slightly f
Slide 5: Business Environment Surrounding Bridgestone Group
Business Environment Surrounding Bridgestone Group Currency USD appreciated against JPY, while EUR remained at the same level as PY Exchange 1USD = 107 yen, 1EUR = 122 yen (Reference) FY19 1USD＝109 yen, 1EUR＝122 yen Raw Material Both natural rubber and crude oil price rose in 4Q, continuing from
Slide 6: Tire Sales Growth for Fiscal 2020
Tire Sales Growth for Fiscal 2020 PSR/LTR TBR ORR 4Q FY 4Q FY 4Q FY Global 99％ 84% Global 105％ 87% Ultra-Large 71％ 83％ (only REP) OE OE Global 101% 78% Global 98% 72% Large 90％ 80% OE 95% 56% Japan 98% 82% Japan 97% 88% REP 89% 87% N. America 104% 76% N. America 87% 64% Small & Medium 95% 83% Europe
Slide 7: Consolidated Financial Results for Fiscal 2020
Consolidated Financial Results for Fiscal 2020 (Yen in billions) IFRS 2019 Results 9 months Results vs. PY (%) 4Q vs. PY (%) 2020 Results vs. PY (%) Revenue 3,507.2 2,148.9 (18) 845.6 (4) 2,994.5 (15) Adjusted Operating Profit 343.1 118.4 (54) 104.5 +22 222.9 (35) Ratio 9.8% 5.5% (4.3) pp 12.4% +2.6
Slide 8: Analysis of Adjusted Operating Profit for Fiscal 2020
Analysis of Adjusted Operating Profit for Fiscal 2020 *1 (Yen in billions) - Price ＋8.0 Price/Mix *1 - incl. Price increase against +28.0 LA currency depreciation 400 Operating Foreign Expense Exch. Loss LA Currency Raw Depreciation 300 Materials +95.0 (11.0) (20.0) +55.0 Volume *2 Loss on 200 343.1
Slide 9: Consolidated Financial Results for Fiscal 2020 by Segment
Consolidated Financial Results for Fiscal 2020 by Segment (Yen in billions) IFRS 2019 2020 vs. PY (%) Results Results Consolidated Revenue 3,507.2 2,994.5 (15) Japan 918.1 762.6 (17) Americas 1,661.7 1,407.9 (15) Europe, Russia, Middle East, India and Africa 640.1 564.3 (12) China, Asia-Pacific 462.
Slide 10: Consolidated Financial Results by Product (Tire Business)
Consolidated Financial Results for Fiscal 2020 by Product (Tire Business) (Yen in billions) IFRS 2019 2020 vs. PY (%) Results Results Revenue 1,708.1 1,455.8 (15) Adjusted OP 180.9 121.8 (33) PS/LT * incl. retail and credit card business Ratio 10.6% 8.4% (2.2) pp Revenue 807.2 660.6 (18) Adjusted OP
Slide 11: Consolidated Financial Results by Business (Diversified Products Business)
Consolidated Financial Results for Fiscal 2020 by Business (Diversified Products Business) Sports / Cycle Biz IFRS Revenue: 65.7 Adjusted OP: (0.1) Chemical & Industrial Diversified Products Products Biz Business Revenue: 220.4 Revenue: 510.1 Adjusted OP: (16.7) Adjusted OP: 9.7 Diversified Products
Slide 12: B/S and C/F Highlights
B/S and C/F Highlights for Fiscal 2020 (Yen in billions) IFRS 2020 Results (As of Dec. 31, 2020) vs. Dec. 31 2019 Total Assets 4,189.3 (87.7) Total Equity 2,195.3 (207.2) Equity Ratio (%) 51.3% (3.6) pp Interest-Bearing Debt 〈Net〉 195.6 (215.9) 2020 Results vs. PY Cash Flows from Operating Activitie
Slide 13: Non-recurring Items for Fiscal 2020
Non-recurring Items for Fiscal 2020 (Yen in billions) Adjusted Items 158.8 Main Items Impairment losses 89.6 : China-TBR, Russia-PSR, Vietnam-PSR, India, Thailand-OR(S&M), Aircraft, Anti-vibration rubber business Business and plant restructuring expenses 42.8 : Provisions relating to the commencemen
Slide 14: 2. Consolidated Projections for Fiscal 2021
2. Consolidated Projections for Fiscal 2021 13/19
Slide 15: Business Environment Assumptions for 2021 Projections
Business Environment Assumptions for 2021 Projections Currency Assumption: 1USD = 103 yen, 1EUR = 126 yen Exchange Raw Material Natural rubber to be slightly lower and crude oil to be slightly higher vs. 4Q’20 Prices Natural rubber to be similar and crude oil to be slightly higher vs. FY20 O
Slide 16: Tire Sales Growth Projections for Fiscal 2021
Tire Sales Growth Projections for Fiscal 2021 PSR/LTR TBR ORR Global 106~110％ Global 111~115% Ultra-Large 106~110% (only REP) OE OE Global 111~115% Global 121~125％ Large 116~120% OE 171~175% Japan 111~115% Japan 101~105% REP 106~110% N. America 121~125% N. America 141~145% Small & Medium 116~120% Eu
Slide 17: Consolidated Projections for Fiscal 2021
Consolidated Projections for Fiscal 2021 (Yen in billions) 2020 2021 IFRS Results Projections vs. PY (%) Revenue 2,994.5 3,010.0 +1 Adjusted Operating Profit 222.9 260.0 +17 Ratio 7.4 % 8.6 % +1.2 pp Profit Attributable to Owners of Parent (23.3) 261.0 - - Profit from Continuing Operations 150.0 Div
Slide 18: Analysis of Adjusted Operating Profit for Fiscal 2021
Analysis of Adjusted Operating Profit for Fiscal 2021 Conversion Cost (Yen in billions) +45.0 (*3) incl. Strategic resource (35.0) Volume (*2) +83.0 300 Operating Foreign Others Expense (*3) Exch. Loss LA Currency Depreciation (20.1) Price/Mix (*1) (25.0) (5.0) (10.0) +28.0 GP Decrease (*2) incl. GP
Slide 19: Consolidated Projections for Fiscal 2021 by Segment
Consolidated Projections for Fiscal 2021 by Segment *1 (Yen in billions) IFRS 2021 Projections vs. PY (%) *2 Consolidated Revenue 3,010.0 +1 Japan 950.0 +7 Americas 1,240.0 (8) Europe, Russia, Middle East, India and Africa 580.0 +5 China, Asia-Pacific 350.0 +8 Consolidated Adjusted Operating Profit
Slide 20: Capital Allocation and Dividend Policy
Capital Allocation and Dividend Policy Capital Allocation Policy Basic Policy The Company secures the internal reserves necessary “to rebuild earning power in our core businesses”, “for strategic growth investments to expand our solutions business, one of our growth businesses”, and “for strategic
Slide 21: 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