Financial Results for Fiscal Bridgestone Corporation February 17, 2015

Transcription

1 Financial Results for Fiscal 2014 Bridgestone Corporation February 17, 2015

2 Contents 1. Business and Financial Performance for Fiscal 2014 P.3 2. Consolidated Projections for Fiscal 2015 P.9 3. Management basic approach P.18 2

3 1. Business and Financial Performance for Fiscal 2014

4 Business Environment Surrounding Bridgestone Group in 2014 Estimated Tire Demand Currency Exchange Tire Demand for 2014 : Original Equipment (VS 2013) Passenger Radial Tires Truck and Bus Radial Tires Japan 101% 113% N. America 106% 118% Europe 102% 97% Asia *1 107% 92% Tire Demand for 2014 : Replacement (VS 2013) Passenger Radial Tires Truck and Bus Radial Tires Japan 102% 106% N. America 105% 110% Europe 102% 104% Asia *1 112% 102% *1 Total of Thailand, Indonesia, India, and China *2 The numbers of demand are estimated by Bridgestone Corporation 1st half 2014 (Ref.) 2nd Fiscal Fiscal half 2013 US Dollar Euro Raw Materials Market trend of natural rubber and crude oil (Average) Natural Rubber <TSR20>* ( /kg) Natural Rubber <RSS#3>* ( /kg) 1st half 2014 (Ref.) 2nd Fiscal Fiscal half Crude Oil *source <WTI> : Singapore Commodity Exchange Limited 期近市況価格参照 ($/bbl) *Source : Current Prices for Singapore Commodity Exchange Limited

5 Consolidated Results for Fiscal 2014 (Yen in billions) Yen/US dollar rate: Yen/Euro rate: Results 2014 Results VS PY (%) (Reference Aug 8, 2014 announcement) 2014 Projections Net Sales 3, , ,650.0 Tires 3, , ,080.0 Diversified Products Operating Income (Ratio) 12.3% (Ratio) 13.0% +9 (Ratio)+0.7% (Ratio) 13.0% Tires Diversified Products Ordinary Income Extraordinary Loss (Gain) 94.6 (14.5) - - *Figures within parentheses mean minus Net Income Dividends per Share 57 yen 100 yen +43 yen 80yen 5

6 Analysis of Consolidated Operating Income for Fiscal 2014 (Yen in billions) 500 Raw Materials Foreign Exch. Gain Price, Mix, Volume etc. (73.1) Strategic Products (5.0) Depreciation (4.0) SGA Operating Income *Figures within parentheses mean minus Operating Income 6

7 Financial Results for Fiscal 2014 : Geographic Segments (Yen in billions) 2013 Results 2014 Results VS PY (%) (Reference Aug 8, 2014 announcement) 2014 Projections Japan 1, ,264.9 (0) 1,250.0 The Americas 1, , ,720.0 Europe Other Regions (2) Consolidated Net Sales 3, , ,650.0 Japan (4) The Americas Europe Other Regions (17) 82.0 Consolidated Operating Income *Figures within parentheses mean minus 7

8 B/S and C/F Highlights for Fisical 2014 (Yen in billions) FY 2013 (As of Dec. 31, 2013) FY 2014 (As of Dec. 31, 2014) VS. Dec. 31, 2013 Total Assets 3, , Total Equity Ratio of total equity to total assets (%) 1, , Interest-Bearing Debt (Net) (36.8) FY 2013 FY 2014 VS. PY Cash Flow by Operating Activities Cash Flow by Investing Activities (265.2) (305.6) (43.1) (40.4) Free Cash Flow (83.6) Capital Expenditure Depreciation ROA (%) ROE (%) *Figures within parentheses mean minus 8

9 2. Consolidated Projections for Fiscal 2015

10 Business Environment Surrounding Bridgestone Group in 2015 Estimated Tire Demand Tire Demand for 2015 : Original Equipment (VS 2014) Passenger Radial Tires Truck and Bus Radial Tires Japan 93% 92% N. America 102% 102% Europe 102% 102% Currency Exchange US Dollar Euro Asia *1 106% 106% Tire Demand for 2015 : Replacement(VS 2014) Raw Materials Passenger Radial Tires Truck and Bus Radial Tires Japan 98% 98% N. America 99% 105% Europe 100% 99% Asia *1 114% 105% *1 Total of Thailand, Indonesia, India, and China *2 The numbers of demand are estimated by Bridgestone Corporation *source : Singapore Commodity Exchange Limited 10

11 Consolidated Projections for Fiscal 2015 Yen/US dollar rate: (Yen in billions) Yen/EURO rate: (4) 2014 Results 2015 Projections VS PY(%) Net Sales 3, , Diversified Products Tires 3, , Operating Income (Ratio)13.0% Diversified Products *Figures within parentheses mean minus (Ratio) 13.0% +9 (Ratio) - % Tires Ordinary Income Net Income Dividends per Share 100 yen 120 yen +20 yen 11

12 Analysis of Consolidated Operating Income for Fiscal 2015 (Yen in billions) 500 Exchange rate Sensitivity (full year) USD:4.3bil. Yen EUR:0.5bil. Yen 450 SGA (39.0) Raw Materials Price, Mix, Volume etc. (36.1) Depreciation (14.0) Strategic Products Foreign Exch. Gain Operating Income Operating Income *Figures within parentheses mean minus 12

13 Financial Projections for Fiscal 2015 : Geographic Segments Sales ( billion yen ) Japan [Japan Tire + Specialty Tire + Diversified Products] 2,000 1,500 1, Sales OP% 20% 15% 10% 5% 0% OP% (Yen in billions) 2015 Projections VS. PY (%) Net Sales 1,250.0 (1) Operating Income <2015 REP Tire Sales (unit base, vs.py%)> Passenger Radial Tires Truck and Bus Radial Tires ~+5% ~+5% Ultra-large ORR Tires (*1) +5% Sales ( billion yen) 2,000 1,500 1, Americas [North America + Latin America] Sales *Figures within parentheses mean minus OP% 20% 15% 10% 5% 0% OP% Large ORR Tires (*1) +10% (*1)Off-the-Road Radial Tires for Construction and Mining Vehicles (Rubber weight base, including Original Equipment sales) (Yen in billions) Passenger Radial Tires Truck and Bus Radial Tires 2015 Projections <2015 REP Tire Sales (unit base, vs.py%)> ~+5% +6%~+10% VS. PY (%) Net Sales 1, Operating Income

14 Financial Projections for Fiscal 2015 : Geographic Segments 2,000 Europe [Western Europe + Eastern Europe] 20% (Yen in billions) 2015 Projections VS. PY (%) Sales ( billion yen ) 1,500 1, Sales OP% 15% 10% 5% 0% OP% Net Sales (2) Operating Income 20.0 (2) <2015 REP Tire Sales (unit base, vs.py%)> Passenger Radial Tires +11%~+15% Truck and Bus Radial Tires +6%~+10% (Yen in billions) Sales ( billion yen ) 2,000 1,500 1, Others [Asia&Pacific + China + Middle East&Africa + Russia] % 15% 10% 5% 0% OP% <2015 REP Tire Sales (unit base, vs.py%)> Asia Pacific Passenger Radial Tires 2015 Projections Truck and Bus Radial Tires VS. PY (%) Net Sales Operating Income %~+15% +21%~+25% Sales OP% China Passenger Radial Tires +31%~+35% *Figures within parentheses mean minus Truck and Bus Radial Tires +21%~+25% 14

15 Trend of Net Sales, Operating Income, ROA, ROE 15

16 Basic policy for dividends Basic policy for distributing profits - Retained earnings for future growth investments - Maintaining appropriate financial position - Shareholder returns Consistent enhancement in profitability Improved financial position Basic policy for dividends Through comprehensive evaluation of business results, financial condition for the relevant fiscal period, medium-term earnings forecasts, investment plans, and cash flows, issuing stable dividend payments targeting a consolidated payout ratio of 20% 40%. (*)underlined parts : changed from previous policy 2015 projection Dividend/share : 120yen (FY) Pay out ratio : 29.5% 16

17 Trend of Dividend Pay Out Ratio 140 (yen per share) 1203% yen 45% 40% 35% Pay Out Ratio 22.1% 100 yen 26.1% 29.5% 30% 25% Dividend per Share 16 yen 15.8% 16.7% 20 yen 22 yen 14.6% 32 yen 57 yen 20% 15% 10% 5% 0 Y09 Y10 Y11 Y12 Y13 Y FY Projections 0% 17

18 3. Management basic approach

19 Management basic approach Framework & Priority Issues: Consistent Ultimate goal To become a truly global company To achieve Dan-Totsu Mission and Foundation Basic Stance Reform Tools - The Bridgestone Essence - Lean & Strategic (L&S) - Group Global Optimization (GG Optimization ) - SBU Organization - MTP Priority issues Cultivating global corporate culture Developing human resources capable of global management Upgrading the global management structure Communication, Teamwork, & Bottom-Up 19

20 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 to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Bridgestone cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not rely on any obligation of Bridgestone to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Bridgestone disclaims any such obligation.