Bridgestone Corporation · TSE:5108
Bridgestone — H1 2024 Earnings Presentation
20 slides from Bridgestone's earnings presentation, Aug 9, 2024
Slide 1: Financial Results for 1st Half of Fiscal 2024
Financial Results for 1st Half of Fiscal 2024 Bridgestone Corporation Global CFO and Executive Director, G Finance Bridgestone Corporation Naoki Hishinuma August 9, 2024
Slide 2: Agenda
1. Business and Financial Performance for 1st Half of Fiscal 2024 ･･･ 3 2. Fiscal 2024 Guidance ･･･ 14 2/19
Slide 3: 1. Business and Financial Performance for 1st Half of Fiscal 2024
1. Business and Financial Performance for 1st Half of Fiscal 2024 3/19
Slide 4: Consolidated Financial Results for 1st Half of Fiscal 2024
Consolidated Financial Results for 1st Half of Fiscal 2024 （Yen in billions） 2023 1H 2024 1H vs PY (%) Results Results 1Q vs PY (%) 2Q vs PY (%) Revenue (*1) 2,101.7 1,064.1 +2 1,112.7 +5 2,176.8 +4 Adjusted Operating Profit (*1) 238.3 120.2 +3 109.0 (10) 229.2 (4) Margin 11.3% 11.3% + 0.1pp 9.8% (1
Slide 5: Overview of the Performance for 1st Half of Fiscal 2024
Overview of the Performance for 1st Half of Fiscal 2024 Executive Summary for 1st Half of Fiscal 2024 Revenue achieved a year-on-year growth. Favorable impact of sales mix improvement through expand sales of PSR REP premium tires (18”+ tires, profitable premium tire brands in each regions, etc.) a
Slide 6: Business Environment Surrounding Bridgestone Group
Business Environment Surrounding Bridgestone Group for 1st Half of Fiscal 2024 Currency ● Both USD and EUR appreciated against JPY compared with PY / 1USD=¥152,1EUR=¥165 (c.f.) 1H’23: 1USD＝¥135,1EUR＝¥146 Exchange ● The 1H feedstock price of natural rubber increased YoY, while crude oil remained flat
Slide 7: Tire Sales Growth (vs. PY) – PSR/LTR
Tire Sales Growth for 1st Half of Fiscal 2024 (vs. PY) – PSR/LTR PSR/LTR PSR/LTR vs. PY HRD (18"+) vs. PY Global (OE+REP) 91% Global (OE+REP) 99% OE REP REP 104% Global 90% 92% / Japan 83% 84% Asia, Pacific, India, China 84% 100% N. America 100% 97% Europe 90% 93% Overview of the Performance by Prod
Slide 8: Tire Sales Growth (vs. PY) – TBR and ORR
Tire Sales Growth for 1st Half of Fiscal 2024 (vs. PY) – TBR and ORR TBR vs. PY (*) As for TBR, figures of China is excluded ORR vs. PY from previous year and the current year. Global (OE+REP) 93% Ultra-Large（REP） 99% OE REP Large 96% Global 89% 94% OE 65% / Japan 105% 75% REP 112% Asia, Pacific, In
Slide 9: Analysis of Adjusted Operating Profit (vs. PY)
Analysis of Adjusted Operating Profit for 1st Half of Fiscal 2024 (vs. PY) (Yen in billions) Raw Materials Price 229.2 MIX Volume +16.0 (17.0) 238.3 +6.0 (40.0) Conversion Currency Argentina Subsidiary Others Costs Operating +26.9 - incl. negative price impact from +27.0 (15.0) market-linked (16.0)
Slide 10: Consolidated Financial Results by Segment
Consolidated Financial Results by Segment for 1st Half of Fiscal 2024 (Yen in billions) 2023 1H 2024 1H vs. PY (%) Results Results Revenue 607.6 586.7 (3) Japan Adjusted OP 89.1 94.1 +6 Margin 14.7% 16.0% +1.4 pp Revenue 273.7 260.5 (5) Asia, Pacific, India and Adjusted OP 23.1 27.8 +20 China (*) Ma
Slide 11: Consolidated Financial Results by Product
Consolidated Financial Results by Product for 1st Half of Fiscal 2024 (Yen in billions) 2023 1H 2024 1H vs. PY (%) Results Results (*) Revenue 1,136.4 1,211.5 +7 PS/LT Adjusted OP 117.9 128.3 +9 (incl. retail & credit card business) Margin 10.4% 10.6% + 0.2pp Revenue 497.9 489.8 (2) Adjusted OP 47.3
Slide 12: Consolidated Financial Results by Business (Diversified Products Business)
Consolidated Financial Results by Business for 1st Half of Fiscal 2024 (Diversified Products Business) (Yen in billions) Sports & Cycle Biz vs. PY (%) Revenue: 32.5 +1 Diversified Adjusted OP: (0) - Products Business Chemical & Industrial vs. PY (%) Margin: (0.1)% (4.3)pp Products Biz vs. PY (%) Rev
Slide 13: B/S and C/F Highlights
B/S and C/F Highlights for 1st Half of Fiscal 2024 (Yen in billions) 2023 Results 2024 1H Results (as of Dec 31, 2023) (as of Jun 30, 2024) vs. Dec 31, 2023 Total Assets 5,427.8 5,865.7 +437.9 Total Equity 3,405.4 3,852.5 +447.1 Equity Ratio (%) 61.8% 64.8% +3.0pp Interest-Bearing Debt 〈Net〉 105.6 1
Slide 14: 2. Consolidated Guidance for 2024
2. Consolidated Guidance for 2024 14/19
Slide 15: Consolidated Guidance for Fiscal 2024 (Revised)
Revise downwards from the February guidance Consolidated Guidance for Fiscal 2024 (Revised) Deteriorate L. America business beyond assumptions (lower than worst scenario assumed in February) ⇒Strengthen damage control as there are huge negative impacts for the year despite the improvement in the 2
Slide 16: Business Environment Assumptions for Fiscal 2024 (Revised)
Business Environment Assumptions for Fiscal 2024 (Revised) Forecast of Business Environment ● 2H: 1USD=¥140 (Full-year basis: 1USD=¥146) （c.f.）FY2023: 1USD=¥141, 1EUR=¥152 Currency Exchange Feb guidance: 1USD=¥135, 1EUR=¥149 ● 2H: 1EUR=¥151 (Full-year basis: 1EUR=¥157) ● Feedstock price is expected
Slide 17: Tire Sales Growth Guidance for Fiscal 2024 (vs. PY)
Tire Sales Growth Guidance for Fiscal 2024 (vs. PY) PSR/LTR TBR ORR vs. PY vs. PY vs. PY Global 95~99% Global 100% Ultra-Large (REP) 100% Large 100% OE OE Global 85~89% Global 90~94% OE 75~79% REP 106~110% / / Japan 80~84% Japan 95~99% Small & Medium 100% Asia, Pacific, India, China 85~89% Asia, Pac
Slide 18: Analysis of Adjusted Operating Profit for Fiscal 2024 (vs. PY)
Analysis of Adjusted Operating Profit for Fiscal 2024 (vs. PY) (Yen in billions) Raw 490.0 Conversion Argentina Others Materials MIX Volume Operating 480.6 (5.0) Price (18.0) +25.0 (14.0) Costs (13.0) Expenses Currency Subsidiary +57.4 (47.0) +44.0 (20.0) - UPI (margin impact) +42.0 FX Sensitivity (
Slide 19: Consolidated Guidance by Segment for Fiscal 2024 : vs PY (Revised)
Consolidated Guidance by Segment for Fiscal 2024 : vs PY (Revised) (Yen in billions) 2024 Guidance 2024 Guidance vs. February vs. PY 2023 Results (‘Feb 16, 2024 Guidance (%) (Revised) (%) Announcement) Revenue 1,242.4 1,265.0 1,255.0 (1) +1 Japan Adjusted OP 206.5 182.0 190.0 +4 (8) Margin 16.6% 14.
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