Bridgestone Corporation · TSE:5108
Bridgestone — FY2023 Earnings Presentation
22 slides from Bridgestone's earnings presentation, Feb 16, 2024
Slide 1: Financial Results for Fiscal 2023
Financial Results for Fiscal 2023 Bridgestone Corporation February 16, 2024 Global CFO and Executive Director, G Finance Naoki Hishinuma
Slide 2: Agenda
1. Business and Financial Performance for Fiscal 2023 ･･･ 3 2. Consolidated Projections for Fiscal 2024 ･･･ 14 3. Shareholder Returns ･･･ 20 2/21
Slide 3: 1. Business and Financial Performance for Fiscal 2023
1. Business and Financial Performance for Fiscal 2023 3/21
Slide 4: Consolidated Financial Results for Fiscal 2023
Consolidated Financial Results for Fiscal 2023 （Yen in billions） (*2) vs. Projections 2023 (%) 2022 Results vs. PY (%) 9 months vs. PY (%) 4Q vs. PY (%) Results (Ref. Feb 16,2023 announcement) (*1) Revenue 4,110.1 3,198.1 +7 1,115.7 (2) 4,313.8 +5 +4 Adjusted (*1) Operating Profit 482.6 362.3 +6 118
Slide 5: Overview of the Performance for Fiscal 2023
Overview of the Performance for Fiscal 2023 Executive Summary of FY 2023 In the premium tire business, we further strengthened our focus on the premium segment amid a challenging demand environment for replacement tires and a year-on-year decline in global sales volume. With respect to PS REP ti
Slide 6: Overview of the Performance: Business and Financial Highlights
Overview of the Performance for Fiscal 2023 Business and Financial Highlights Revenue achieved a year-on-year increase. The favorable impacts came from improvement of sales mix of PSR REP premium tires(18”+inch tires, and profitable premium tire brands in each regions), as well as expanding sales
Slide 7: Business Environment Surrounding Bridgestone Group for Fiscal 2023
Business Environment Surrounding Bridgestone Group for Fiscal 2023 Currency Both USD and EUR appreciated against JPY compared with PY Exchange 1USD = ¥141, 1EUR = ¥152 (4Q: 1USD = ¥148, 1EUR = ¥159) (Reference) FY22 1USD ＝ ¥132, 1EUR ＝ ¥138 Raw Material: The feedstock prices of raw materials dec
Slide 8: Tire Sales Growth for Fiscal 2023 (vs. PY)
Tire Sales Growth for Fiscal 2023(vs. PY) PSR/LTR TBR ORR vs PY vs PY vs PY Global 94% Global 88% Ultra-Large (REP) 105% OE OE Large 104% Global 102% Global 96% OE 97% Japan 113% Japan 113% REP 108% China, Asia-Pacific 89% China, Asia-Pacific 105% Small & Medium 99% N. America 105% N. America 89% OE
Slide 9: Analysis of Adjusted Operating Profit for Fiscal 2023 (vs. PY)
Analysis of Adjusted Operating Profit for Fiscal 2023(vs. PY) Previous classification Price MIX Volume Conversion LA Currency (Yen in billions) +203.0 +18.0 (73.0) Costs Operating Currency Depreciation (88.0) Expenses Others Raw Materials +62.0 (48.0) 482.6 (4.0) +7.0 (79.0) 480.6 -Effect of -incl.
Slide 10: Consolidated Financial Results by Segment for Fiscal 2023
Consolidated Financial Results by Segment for Fiscal 2023 (Yen in billions) vs. Projections (%) 2022 Results 2023 Results vs. PY (%) (Ref. Feb 16,2023 announcement) Revenue 1,157.1 1,242.4 +7 (3) (*1) Japan Adjusted OP 150.6 206.5 +37 +29 Margin 13.0% 16.6% +3.6pp + 4.1pp Revenue 457.0 461.1 +1 (5)
Slide 11: Consolidated Financial Results by Product for Fiscal 2023
Consolidated Financial Results by Product for Fiscal 2023 (Yen in billions) (*1) 2022 2023 vs. PY (%) Results Results Revenue 2,203.5 2,375.4 +8 PS/LT Adjusted OP 261.2 272.3 +4 (incl. retail & credit card business) Margin 11.9% 11.5% (0.4) pp Revenue 1,066.6 1,028.6 (4) Adjusted OP 95.3 58.2 (39) T
Slide 12: Consolidated Financial Results by Business (Diversified Products)
Consolidated Financial Results by Business for Fiscal 2023 (Diversified Products Business – Continuing Operations) (Yen in billions) Sports & Cycle Biz Revenue: 60.8 Adjusted OP: 0.7 Margin: 1.2% Diversified Products Business Chemical & Industrial Products Biz Revenue: 298.4 Revenue: 170.4 Adjusted
Slide 13: B/S and C/F Highlights for Fiscal 2023
B/S and C/F Highlights for Fiscal 2023 (Yen in billions) 2022 Results 2023 Results vs. Dec 31, 2022 (as of Dec 31, 2022) (as of Dec 31, 2023) Total Assets (*) 4,962.2 5,427.8 +465.6 3,012.5 3,405.4 (*) Total Equity +392.9 59.8% 61.8% (*) Equity Ratio (%) +2.0pp Interest-Bearing Debt 〈Net〉 248.3 105.
Slide 14: 2. Consolidated Projections for Fiscal 2024
2. Consolidated Projections for Fiscal 2024 14/21
Slide 15: Consolidated Projections for Fiscal 2024
Consolidated Projections for Fiscal 2024 (Yen in billions) 2023 Results 2024 Projections vs. PY (%) 4,313.8 4,430.0 (*1) Revenue +3 Adjusted Operating Profit (*1) 480.6 530.0 +10 Margin 11.1% 12.0% + 0.8pp Profit Attributable to Owners (*2) of Parent 331.3 359.0 +8 -Continuing Operations 326.9 359.0
Slide 16: Business Environment Assumptions for Fiscal 2024
Business Environment Assumptions for Fiscal 2024 Business environment will remain to be severe (especially 1Q/1st half) General Business Severe economic trend (especially in Europe) / Energy cost will remain in a high level / Significant increase in labor cost Higher ocean freight due to the sit
Slide 17: Tire Sales Growth Projections for Fiscal 2024 (vs. PY)
Tire Sales Growth Projections for Fiscal 2024 (vs. PY) PSR/LTR TBR ORR vs. PY vs. PY vs. PY Global 101~105% Global 101~105% Ultra-Large (REP) 100% OE OE Large 101~105% Global 100% Global 101~105% OE 90~94% Japan 90~94% Japan 101~105% REP 106~110% (*) (*) Asia, Pacific, India, China 101~105% Asia, Pa
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) Conversion Operating Volume Costs Expenses Raw MIX +64.0 (7.0) (88.0) Argentina Others Materials Price +33.0 Currency Subsidiary +49.4 530.0 480.6 (10.0) +29.0 (15.0) (6.0) -UPI +20.0 FX Sensitivity (*)including currenc
Slide 19: Consolidated Projections by Segment for Fiscal 2024
Consolidated Projections by Segment for Fiscal 2024 (Yen in billions) 2023 Results 2024 Projections vs. PY (%) Revenue 1,242.4 1,265.0 +2 Japan Adjusted OP 206.5 182.0 (12) Margin 16.6% 14.4% (2.2)pp Revenue 551.5 570.0 +3 Asia, Pacific, India, (*) Adjusted OP 55.2 63.0 +14 China Margin 10.0% 11.1%
Slide 20: 3. Shareholder Returns
3. Shareholder Returns 20/21
Slide 21: Shareholder Returns
Shareholder Returns Basic Policy for the Appropriation of Profits Regarding the interests of shareholders as an important management priority, the Company follows a basic policy of strengthening our management base in preparation for future business developments while working to improve business r
Slide 22: 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