Mid-term Management Plan 2010
Tokyo (October 22, 2010) – Bridgestone Corporation announced the formulation of its Mid-Term Management Plan 2010 (MTP 2010). The details are as follows.
1. Positioning of MTP 2010
MTP 2010 covers the five-year period from 2011 to 2015. Reflecting changes in the business environment since the formulation of MTP 2009, the new plan incorporates the necessary additions and updates to the company’s strategies and policies.
2. Progress from 2009: “Lean and Strategic” Initiatives
(1) In response to the economic crisis, since 2009 the Group has implemented a range of initiatives, including thorough asset streamlining on a global basis. The key details are as follows.
a. Improving the Group’s corporate financial management
• Reduction of accounts receivable and inventories
• Reduction of capital investment
b. Implementing other major initiatives
• Reorganization of tire production bases in Oceania
• Realignment of steel cord business
• Reorganization of domestic tire / chemical and industrial product business
• Consolidation of domestic tire production system
(2) Initiatives to further enhance competitiveness
This refers to using the Group’s various resources to establish an overwhelming advantages versus competitors. Details of initiatives to further enhance competitiveness are as follows.
a. Expansion of strategic tire products and operations
• Passenger tires: (runflat tires*1, UHP (ultra-high performance) tires, winter tires)
• Truck and bus tires (solutions business utilizing retread technologies, low-profile tires)
• Specialty tires (large and ultralarge radial tires for construction and mining vehicles, aircraft radial tires, motorcycle radial tires)
b. Reinforce fundamental competencies
• Leveraging vertical integration, implementation of research from the raw material level and achievement of technical breakthroughs via optimization of specifications in order to bolster overall supply chain competitiveness.
c. Secure position in developing economies (tire business)
• Growth strategy for tire business in China, India, Brazil and other developing economies
d. “Selection and concentration” in diversified products (non-tire) operations
• Bolster global development of construction materials and hose/belt operations, etc.
• Expand EVA film for solar modules*2 operations and electronic paper*3 operations
e. Environmental activities, environmentally friendly products and operations
• Working toward the realization of a sustainable society (low carbon society / recycling oriented society / environmentally friendly society), take the initiative in setting challenging goals and working for further progress in environmental countermeasures.
• Expansion of environmentally friendly products and operations
3. MTP 2010 Target Performance
(1) ROA
• 2012: 6%
• 2013: Improve further
(2) Net sales
• 2012: ¥3.5 trillion
(3)Operating income
• 2012: ¥280.0 billion
(Reference): Factors behind operating income increase (2009 » 2012)
• Strategic product expansion: +¥65.0 billion
• Rationalization initiatives: +¥40.0 billion
• Diversified product business: +¥45.0 billion
• Unit increase, etc.: +¥55.0 billion
| Notes: | ||
*1. | Runflat tires continue to operate at a specified speed for a specified distance under normal conditions at 0kPa air pressure. This improves safety in the event of a sudden loss of air pressure, as with a puncture. In addition, runflat tires can eliminate the need for spare (emergency use) tires. Eliminating the spare tire typically helps to make vehicles lighter, to improve fuel consumption, and contribute to resource conservation, while it affords automakers greater latitude in designing vehicles. Bridgestone runflat tires do not require specialized wheels. They can be used with conventional wheels. | |
*2. | EVA: Ethylene vinyl acetate film. EVA film is used as an adhesive film to fasten the silicon cell (which converts the sun’s rays to electricity) to the glass surface through heat-induced molecular binding. | |
*3: | The features of Bridgestone’s electronic paper include excellent visibility, similar to that of actual paper; a wide viewing angle; and the ability to display text and graphics in color. This electronic paper can maintain an image without electrical power. In addition, with a high display speed (more than 30 times that of liquid crystal), the displayed content can be changed instantly, and it can be used in low-temperature environments. |
