Bridgestone 2014 Mid-term Management Plan

Bridgestone
2014 Mid-term Management Plan
Masaaki Tsuya
CEO and Representative Board Member
Concurrently Chairman of the Board,
Bridgestone Corporation
Oct 16, 2014
Today’s agenda
1.
Introduction
2.
2014 MTP (priority issues)
3.
2014 MTP (management targets)
4.
Ultimate Goal
MTP: Mid-term Management Plan
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Today’s agenda
1.
Introduction
2.
2014 MTP (priority issues)
3.
2014 MTP (management targets)
4.
Ultimate Goal
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1. Introduction (Summary of 2013 MTP)
Ultimate goal
Mission and Foundation
Basic Stance
Reform Tools
To become a truly global company
To achieve “Dan-Totsu”
- 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
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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 :
Exceed the industry average
Overall :
Consistently deliver ROA 6% and OP10%
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Today’s agenda
1.
Introduction
2.
2014 MTP (priority issues)
3.
2014 MTP (management targets)
4.
Ultimate Goal
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2. 2014 MTP (priority issues)
(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 :
B. Tire SBUs :
C. DP business :
enhancement of governance systems
restructure the tire business SBUs
expansion of the Diversified Products business
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2. 2014 MTP (priority issues)
(1) Culture : cultivating global corporate culture
A. Clarify brand strategy
(a) Elevate / redefine the Bridgestone Logo (“B Mark”) :
Bridgestone Mark
Bridgestone Mark
B Mark
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2. 2014 MTP (priority issues)
(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)
3rd Brand
(e.g.
• Regional
)
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2. 2014 MTP (priority issues)
(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
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2. 2014 MTP (priority issues)
(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
・IT/sensor technology (TPMS, CAIS)
・Anti-vibration solution package
Guayule
(2nd generation)
Air Free
Concept
[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)
CAIS
Smart mobility
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2. 2014 MTP (priority issues)
(1) Culture : cultivating global corporate culture
B. Technology & business model innovation
For commercial users
Fleet solutions
New tire
Mining solutions
Retread
Tire
Conveyor Belt
Agriculture Mobility
solutions
HYD Hose
Rubber Track
Tire
Service & Maintenance
IT/sensor technology
RFID
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2. 2014 MTP (priority issues)
(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
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2. 2014 MTP (priority issues)
(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)
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2. 2014 MTP (priority issues)
(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)]
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2. 2014 MTP (priority issues)
(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
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2. 2014 MTP (priority issues)
(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 :
upgrade the Boards’ committees’ accountabilities/responsibilities
(through building diverse teams in order to promote robust discussions)
(c) Delegation :
clarify lines of authority & responsibility, and enhance delegation
(d) SBUs :
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
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2. 2014 MTP (priority issues)
(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
(West & Eastern Europe + Middle East, Africa, Turkey, & Russia)
(c) Further optimization of GHO/GMP
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2. 2014 MTP (priority issues)
(3) Structure : upgrading the global management structure
B. Tire SBUs : restructure the tire business SBUs
20%
1500
15%
1000
10%
500
5%
0
0%
2011
2012
Sales
2013
OP%
5%
0%
2011
2012
Sales
10%
500
5%
0
0%
2014
(Forecast)
Sales ( billion yen )
1000
OP%
500
0
OP%
Sales ( billion yen )
15%
Sales
10%
2013
2014
(Forecast)
OP%
Others
[Asia&Pacific + China + Middle East&Africa + Russia]
1500
2013
1000
(Forecast)
20%
2012
15%
2010
2000
2011
1500
2014
Americas
[North America + Latin America]
2010
20%
2000
20%
1500
15%
1000
10%
500
OP%
2010
2000
OP%
2000
Sales ( billion yen )
Europe
[Western Europe + Eastern Europe]
OP%
Sales ( billion yen )
Japan
[Japan Tire + Specialty Tire + Diversified Products]
5%
0
0%
2010
2011
2012
Sales
2013
OP%
2014
(Forecast)
(by Geographic Segments)
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2. 2014 MTP (priority issues)
(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”
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Today’s agenda
1.
Introduction
2.
2014 MTP (priority issues)
3.
2014 MTP (management targets)
4.
Ultimate Goal
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3. 2014 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
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3. 2014 MTP (management targets)
16%
ROE
OP
ROA
13.7%
14%
12.7%
12%
12.3%
10%
8%
6%
9.1%
7.4%
8.9%
6.4%
5.8%
4%
6.3%
9.4%
6.0%
6.1%
3.8%
3.6%
2%
3.0%
0%
2006
2007
2008
2009
2010
2011
2012
2013
2006
2007
2008
2009
2010
2011
2012
2013
ROA (%)
3.0
4.1
0.3
0.0
3.6
3.8
6.0
6.1
OP (%)
6.4
7.4
4.1
2.9
5.8
6.3
9.4
12.3
ROE (%)
7.4
10.3
0.9
0.1
8.9
9.1
13.7
12.7
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3. 2014 MTP (management targets)
Dividend Per Share (yen)
90
80
70
60
50
40
30
20
10
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
FY
2006
2007
2008
2009
2010
2011
2012
2013
2014(F)
Net Income
(billion yen)
85.1
131.6
10.4
1.0
98.9
102.9
171.6
202.0
293.0
Dividend
Per Share
(yen)
24
26
24
16
20
22
32
57
80
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Today’s agenda
1.
Introduction
2.
2014 MTP (priority issues)
3.
2014 MTP (management targets)
4.
Ultimate Goal
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4. Ultimate Goal
- To become a truly global company
- To achieve “Dan-Totsu”
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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.
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