Bridgestone 2014 Mid-term Management Plan

Transcription

1 Bridgestone 2014 Mid-term Management Plan Masaaki Tsuya CEO and Representative Board Member Concurrently Chairman of the Board, Bridgestone Corporation Oct 16, 2014

2 Today s agenda 1. Introduction MTP (priority issues) MTP (management targets) 4. Ultimate Goal MTP: Mid-term Management Plan 2/27

3 Today s agenda 1. Introduction MTP (priority issues) MTP (management targets) 4. Ultimate Goal 3/27

4 1. Introduction (Summary of 2013 MTP) 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 Cultivating global corporate culture Priority issues Developing human resources capable of global management Upgrading the global management structure Communication, Teamwork, & Bottom-Up 4/27

5 1. Introduction (Summary of 2013 MTP) 2013 Management targets Qualitative goal : - Maintain our commitment to the Bridgestone Essence, & our basic stance (L&S and GG Optimization) - Secure both growth and profitability - Always aim for the higher level position (continuous Kaizen) - Promote innovation Quantitative goal Growth : Overall : Exceed the industry average Consistently deliver ROA 6% and OP10% 5/27

6 Today s agenda 1. Introduction MTP (priority issues) MTP (management targets) 4. Ultimate Goal 6/27

7 (1) Culture : cultivating global corporate culture A. Clarify brand strategy B. Technology & business model innovation C. Continuous Kaizen (2) HR: developing human resources capable of global management (3) Structure : upgrading the global management structure A. Governance : enhancement of governance systems B. Tire SBUs : restructure the tire business SBUs C. DP business : expansion of the Diversified Products business 7/27

8 (1) Culture : cultivating global corporate culture A. Clarify brand strategy (a) Elevate / redefine the Bridgestone Logo ( B Mark ) : Bridgestone Mark Bridgestone Mark B Mark 8/27

9 (1) Culture : cultivating global corporate culture A. Clarify brand strategy (b) Integrated brand strategy including diversified products Major Brand (Tire & Diversified Products) Globally unified/aligned Major Brand (Tire & Diversified Products) Regional Regional + Global (Brand power differs by region Unify globally) 3 rd Brand (e.g. ) Regional 9/27

10 (1) Culture : cultivating global corporate culture A. Clarify brand strategy (c) Official Worldwide Olympic Partner Strategic Investment: Increase brand awareness and value; promote further global business development Shared Values: Sustainability, Social Responsibility, Diversity & Environmental Stewardship 10/27

11 (1) Culture : cultivating global corporate culture B. Technology & business model innovation For consumers Mega Trends include: Urbanization, Demographic change (aging populations), Emerging market growth, Alternative fuels, Environmental concern/impacts, Traffic infrastructure change Raw Materials Products Solutions Guayule Russian Dandelion Biomass synthetic rubber Strategic products 100% sustainable material concept Air Free Concept (2 nd generation) IT/sensor technology (TPMS, CAIS) Anti-vibration solution package [Tires, Anti-Vibration Products (AVP), Seat Pad] 1 mile concept of human transportation (bicycle, smart mobility) Services and mobility for aging society (sports, smart mobility) Guayule Air Free Concept CAIS Smart mobility 11/27

12 (1) Culture : cultivating global corporate culture B. Technology & business model innovation For commercial users Fleet solutions Mining solutions Agriculture Mobility solutions New tire Retread Tire Conveyor Belt HYD Hose Rubber Track Tire Service & Maintenance IT/sensor technology RFID 12/27

13 (1) Culture: cultivating global corporate culture C. Continuous Kaizen In each & every area of business : continuous improvement (a) 2 Tools to facilitate Kaizen : SBU Organization / MTP (b) Kaizen also applies to 3 priority issues : Corporate culture / HR / Structure The 5th Bridgestone Group & Global TQM (Total Quality Management) Conference 13/27

14 (2) HR : developing human resources capable of global management (a) Diversity : Advance the development and promotion of diverse talent GDC (Global Development Class) : Global pool: 114 people in last 10 years (14 nationalities) (b) Language : Designate English as an official company language Global meetings conducted in English e.g. Global EXCO (Global Executive Operational Committee) Group & Global TQM Conference Bridgestone Group Awards (Global Competition) 14/27

15 (2) HR : developing human resources capable of global management (c) Global EXCO : Highest body of global business execution Utilize & strengthen global talent Frequency : Periodically throughout the year Language : English Members : 14 people (5 nationalities) 4 from the Americas, 2 from Europe, 1 from China/Asia/Pacific, 7 from Japan [GHO(Global Head Office) & GMP(Global Management Platform)] 15/27

16 (2) HR : developing human resources capable of global management Moving forward (a) Developing global future leadership: VIP (Vision, Integrity, Principles) (b) Global & regional talent rotation (c) Global & regional training and development programs (d) Creating a global committee structure 16/27

17 (3) Structure : upgrading the global management structure A. Governance : enhancement of governance systems What we have done (a) Independent Board members : strengthen check and balance function (the parent company and each subsidiary) (b) Committees : (c) Delegation : (d) SBUs : upgrade the Boards committees accountabilities/responsibilities (through building diverse teams in order to promote robust discussions) clarify lines of authority & responsibility, and enhance delegation restructure the tire business SBUs Moving forward (a) Boards & Committees : strengthen & fully utilize (b) Global EXCO : management team operating with transparent & robust discussions (c) Further SBU restructure : clarify the roles of GHO/GMP/SBU 17/27

18 (3) Structure : upgrading the global management structure B. Tire SBUs : restructure the tire business SBUs What we have done (a) Establishment of BSCAP (Bridgestone China SBU+ Asia Pacific SBU) (b) Future expansion of European SBU (c) Further optimization of GHO/GMP (West & Eastern Europe + Middle East, Africa, Turkey, & Russia) 18/27

19 (3) Structure : upgrading the global management structure B. Tire SBUs : restructure the tire business SBUs Japan [Japan Tire + Specialty Tire + Diversified Products] Europe [Western Europe + Eastern Europe] % % Sales ( billion yen ) % 10% 5% OP% Sales ( billion yen ) % 10% 5% OP% 0 0% Sales OP% (Forecast) 0 0% Sales OP% (Forecast) Americas [North America + Latin America] Others [Asia&Pacific + China + Middle East&Africa + Russia] % % Sales ( billion yen ) % 10% 5% OP% Sales ( billion yen ) % 10% 5% OP% 0 0% Sales OP% (Forecast) 0 0% Sales OP% (Forecast) (by Geographic Segments) 19/27

20 (3) Structure : upgrading the global management structure C. DP business : expansion of the Diversified Products business (a) Chemical & Industrial Products : Integration : domestic sales organization, China operations Further upgrading synergy with tire business - Tires, Conveyor Belt and HYD Hose Hose business : acquisition of one of the largest US service companies (b) Automotive Components : Further upgrading synergy with tire business - Tires, AVP and Seat Pad (c) Sporting Goods & Bicycles : Closer coordination with other group business & marketing activities i.e.: WGC (World Golf Championships) Bridgestone Golf B mark 20/27

21 Today s agenda 1. Introduction MTP (priority issues) MTP (management targets) 4. Ultimate Goal 21/27

22 MTP (management targets) Framework & Priority Issues: Consistent with 13MTP Qualitative goal : Quantitative goal : Growth : Overall : Each SBU : - Secure both growth and profitability - Consistency & Sustainability Exceed the industry average - Consistently deliver at least ROA 6% and OP10% - Consistently deliver ROE 12% OP10% (respectively) & Continuous Kaizen 22/27

23 MTP (management targets) 16% 14% ROE OP ROA 13.7% 12.7% 12% 10% 8% 7.4% 8.9% 9.1% 9.4% 12.3% 6% 4% 2% 6.4% 3.0% 5.8% 3.6% 6.3% 3.8% 6.0% 6.1% 0% ROA (%) OP (%) ROE (%) /27

24 MTP (management targets) 90 Dividend Per Share (yen) FY (F) Net Income (billion yen) Dividend Per Share (yen) /27

25 Today s agenda 1. Introduction MTP (priority issues) MTP (management targets) 4. Ultimate Goal 25/27

26 4. Ultimate Goal - To become a truly global company - To achieve Dan-Totsu 26/27

27 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. 27/27