2016 mid-term management plan (mtp) - bridgestone … · 2016 mid-term management plan (mtp) oct...

2016 Mid-term Management Plan (MTP)

Oct 17, 2016

Masaaki Tsuya

Member of the Board

CEO and Representative Executive Officer

Concurrently Chairman of the Board

Copyright © 2016 Bridgestone Corporation | Oct.17. 2016 2/38

1. Introduction

2. 2016 MTP (Priority issues)

3. 2016 MTP (Management targets)

4. Ultimate Goal

Today’s agenda

MTP: Mid-term Management Plan


1. Introduction



4. Ultimate Goal

Today’s agenda


1. Introduction (Our Reform Framework)

- Lean & Strategic (L&S)

- Group Global Optimization (GG Optimization)

- SBU Organization

- MTP

- The Bridgestone Essence

- Safety, Quality & Environmental Mission Statements

• Cultivating global corporate culture

• Developing human resources capable of global management

• Upgrading the global management structure

To become a truly global company

To achieve “Dan-Totsu”

Reform Tools

Basic Stance

Mission and Foundation

Framework

Priority issues

Ultimate goal

Communication, Teamwork, & Bottom-Up


1. Introduction



4. Ultimate Goal

Today’s agenda



(1) Culture : Cultivating global corporate culture

A. Advance brand strategy

B. Innovation (technology, business model & design)

C. Continuous Kaizen

(2) HR : Developing human resources capable of global

management

(3) Structure : Upgrading the global management structure

A. Governance : Enhancing governance systems

B. DP business : Expanding the Diversified Products businesses


2. 2016 MTP (Priority issues) (1) Cultivating global corporate culture


(a) Integrated brand strategy including Diversified Products

Major brand (Global)

Regional brand

• Globalization of brand

• Tools ： F shield

IndyCar Motorsports Series

Product line expansion

• Globally unified / aligned to grow

brand power

• Tools : B mark strategy

Olympic partnership

• Aligned with global strategy (e.g. )



Geneva International Motor Show World Golf Championships (WGC)

Bridgestone Invitational


(b) Accelerate global acceptance / awareness / value of B mark




(c) Olympic TOP Partner, Select Paralympic Partnerships

2014 Official Worldwide Olympic Partner

2016 (Mar.) Tokyo 2020 Paralympic Gold Partner

Partnership with Japan and U.S. Paralympic Teams



2016 (Aug.) Rio 2016 Olympic Games

Chase Your Dream

Branding activities

• “Chase Your Dream” theme

• Effective use of WEB・Social media

• Interactive Fan Zone (Golf experience)

2017 Global expansion of activation rights

(~2016 Limited to Japan, USA, Korea, and Brazil)




Inspirational documentary series

presented by Bridgestone




First Founding Partner of “Olympic Channel”

-- Announced August 15 during Rio Games




(d) Firestone : Globalization of brand

Rich legacy : More than 116 years of history and heritage

Our advantage : Two major brands with global reach and

distinct characteristics

Establish global brand management

/ governance structure Further global business expansion

Paris International Motor Show




(e) Enhancing brand power in regional markets




(f) Brand value

(Source: Interbrand)

Brand value (US $ million)

0

1,000

2,000

3,000

2010 2011 2012 2013 2014 2015 2016




(a) “Anticipate” business environment and market trends

Business environment

Customer value

ICT (Information and Communication Technology) Utilization and

Innovation through whole company-wide value chain




(b) Upgrading the R&D structure to promote innovation

TC : Technical Center

DPTC : Diversified Products TC

PG : Proving Ground

Europe TC・PG : Roma(’04~)

Japan TC : Tokyo(’00~)

DPTC : Yokohama(’00~)

Asia & Pacific TC・PG : China(’08~)

TC・PG : Thailand(’09~)

Solution : Australia(’14~)

Americas TC: Akron(’12~)

Europe PG

Mining Solution

Yokoahama Tokyo

Akron

Tokyo(’18~)




(c) Innovative technologies

• ULTIMAT EYE

(Tire analysis technology)

• EXAMATION

(New State-of-the-Art tire assembling system)

• CAIS

(Road surface condition sensing technology)




(d) biotechnologies

• Technique to Easily Diagnose

Disease in Rubber Trees

(Rapid detection by gene analysis)

• Guayule

(Expansion and diversification of

renewable resources)

Guayule Research farm in Arizona, USA

－＋－＋




(e) Open innovation (Cooperation with government and academia)

Resource conservation tire by innovative tough polymer composite

Current Future




(f) Move from “Product” to “Solution”

AG Tire Rubber track

• Puncture Run-Flat Technology

• NVH (Noise, Vibration, Harshness)

Tire + AVP (Anti-Vibration Products) + Seat pad

• Fleet

New Tire + Retread + Service + IT

• Mining

Tire + Conveyor belt + Service + IT

• Agriculture mobility

AG Tire + Rubber track + Service + IT




(g) Good Design Award 2016

Siphon Drainage System ANCHOR RT9 FRAME REGNO GR-Leggera

Drainage without slope

Flexible piping design




In each & every area of business : Continuous improvement

Bridgestone Group Awards 2016 7th Bridgestone Group & Global TQM

(Total Quality Management) Conference




Enhance and expand sales network

Strengthening and expanding retail networks

(Europe)

① Acquisition of Speedy* (France)

*500-POS network

② Joint venture with Pneuhage* (Germany) *Sales: € 416 million (fiscal 2015)

Enhancing E-commerce capabilities

Acquisition of TireConnect

(Global potential, with initial launch

in North America)




Contribute to the creation of a sustainable society

2016： Named to DJSI World


2. 2016 MTP (Priority issues) (2) Developing human resources capable of global management

(a) Global Leadership Capabilities

(c) Diversity : Advance the development and promotion of diverse talent

① More outside talents to management

② Focus on increased gender diversity

Daycare center (Kodaira, Yokohama)

“Nadeshiko Brand” for 3 consecutive years)

(b) Communication tool : English as an official company language

Global meetings conducted in English

e.g. Global EXCO (Global Executive Committee)

Group & Global TQM Conference

Bridgestone Group Awards


(d) Global EXCO：

• Highest body of global business execution

• Developing & strengthening talent

• 14 Official Members (5 nationalities) + Observers

• Cross-business/cross-functional Committee ：

Global EXCO-sponsored working groups

2. 2016 MTP (Priority issues) (2) Developing human resources capable of global management


“1st Corporate Governance of the Year” Grand Prize

hosted by Japan Association of Corporate Directors

2. 2016 MTP (Priority issues) (3) Upgrading the global management structure

A. Governance :

Enhancing governance and accelerating business execution

(a) Organization design : Shifted to “Company with Nominating

Committees etc.” corporate structure

(b) Delegation : Clarify lines of authority & responsibility

and enhance delegation



A. Governance :

Enhancing governance and accelerating business execution

(c) Global EXCO： Establish an operating structure

having the Global EXCO at its core

(d) SBU restructure:

① Restructure the Tire business SBUs

BSCAP (Jul., 2014) China + Asia Pacific

BSEMEA (Sep., 2015) Europe + Middle East, Africa, Turkey, & Russia

② Established Global Mining and Agricultural Solution Company (Jan., 2016)

③ Clarify the roles of GHO/GMP/SBU


Hydrogen fuelling hose



• Globalization : Expanding the production base

e.g. Seat pad (USA), AVP (Indonesia)

• Environment : Enabling the use of alternative fuels

e.g. Hydrogen fuelling hose (Japan)


The National Museum of Western Art Roofing



• Infrastructure : Seismic isolator e.g. The National Museum of Western Art

Proved long-term durability

(almost 30 years)

Building products e.g. Roofing, Siphon Drainage System


bikke GRI



• Quality of Life : Electric-Assisted Bicycle with child seat

e.g. bikke GRI

Sports・health class e.g. Swimming school

Custom-fitting (golf) e.g. “Golfer’s store”

Personalized club fitting in a store


1. Introduction



4. Ultimate Goal

Today’s agenda



Framework & Priority Issues:

Consistent with 15MTP

Consistently deliver

Growth : Exceed the industry average

Overall : ROA 6%, OP 10%, ROE 12％

Each SBU : OP 10% (Respectively)

Innovation & continuous Kaizen (focus on quality and balance)



（by Geographic Segments） * At the beginning of fiscal year 2016, “Middle East, Africa & Russia” formerly included in the “Others” segment

was transferred to the “EMEA” segment as the result of the restructuring of the tire business SBUs


0%

10%

20%

30%

40%

50%

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015 2016


2011 2012 2013 2014 2015 2016

(Forecast)

Net income

(Billion Yen) 102.9 171.6 202.0 300.5 284.2 257.0

Dividends per share

(Yen) 22 32 57 100 130 140

Consolidated payout

ratio(%) 17 15 22 26 36 43

Dividend(Yen)・Payout ratio(%)


1. Introduction



4. Ultimate Goal

Today’s agenda


To become a truly global company

To achieve “Dan-Totsu”

4. Ultimate Goal


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.

2016 mid-term management plan (mtp) - bridgestone … · 2016 mid-term management plan (mtp) oct...

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