Mid-term Management Plan 2011
Tokyo (October 21, 2011) - Bridgestone Corporation announced today the formulation of its Mid-Term Management Plan for 2011 (MTP2011). The details are as follows.
1. Positioning of MTP2011
MTP2011 covers the five-year period from 2012 to 2016. Reflecting changes in the business environment since the formulation of MTP 2010, the new plan incorporates the necessary additions and updates to the Company's strategies and policies.
2. Outline of MTP2011
3. MTP 2011 Target Performance
(Reference): Factors behind operating income increase (2009 to 2012)
Note:
* Runflat tires continue to operate at a limited speed for a specified distance under normal conditions at 0kPa air pressure. Runflat tires enhance driver control in the event of a sudden loss of air pressure, as with a puncture. In addition, runflat tires eliminate the need for a spare (emergency use) tire. Eliminating the spare tire typically helps to make vehicles lighter, improves fuel consumption, and contributes to resource conservation, while also allowing automakers greater latitude in vehicle design.
1. Positioning of MTP2011
MTP2011 covers the five-year period from 2012 to 2016. Reflecting changes in the business environment since the formulation of MTP 2010, the new plan incorporates the necessary additions and updates to the Company's strategies and policies.
2. Outline of MTP2011
(1) Forecast to achieve 6% ROA in 2012
MTP2011 sets a target of achieving a return on assets (ROA) of 6% in 2012. To this end, the plan lays out measures for expanding sales of strategic tire products and improving its sales mix, maximizing operational rationalization, and thoroughly streamlining Company assets. These measures will be implemented in an effective and timely manner that is consistent with the Company's policy of "Lean and Strategic." Further, in 2013 and afterwards, the plan calls for continued ROA performance by striving to improve further.
MTP2011 sets a target of achieving a return on assets (ROA) of 6% in 2012. To this end, the plan lays out measures for expanding sales of strategic tire products and improving its sales mix, maximizing operational rationalization, and thoroughly streamlining Company assets. These measures will be implemented in an effective and timely manner that is consistent with the Company's policy of "Lean and Strategic." Further, in 2013 and afterwards, the plan calls for continued ROA performance by striving to improve further.
(2) Initiatives for further improvements
In 2013 and afterwards, we will implement initiatives that will allow us to compete on a different ground. Competing on a different ground will include making full use of the Bridgestone Group's extensive range of resources to ensure a competitive advantage. Specific initiatives will include the following:
In 2013 and afterwards, we will implement initiatives that will allow us to compete on a different ground. Competing on a different ground will include making full use of the Bridgestone Group's extensive range of resources to ensure a competitive advantage. Specific initiatives will include the following:
a. Expansion of strategic tire products and operations
･ Passenger car tires (Runflat tires*, Ultra High Performance (UHP) tires, winter tires)
･ Truck and bus tires (Solution-based business utilizing retread tires)
･ Specialty tires (Large and ultra-large off-the-road radial tires for construction and mining vehicles, radial tires for aircraft, radial tires for motorcycles)
･ Truck and bus tires (Solution-based business utilizing retread tires)
･ Specialty tires (Large and ultra-large off-the-road radial tires for construction and mining vehicles, radial tires for aircraft, radial tires for motorcycles)
b. Reinforce fundamental competencies
･ Initiatives to strengthen competitiveness throughout the supply chain
c. Leverage the benefits realized through vertical and horizontal expansion
(a) Vertical expansion of the supply chain
･ Optimization of tire performance and costs, starting with raw materials in the upstream areas of the supply chain, and connecting this optimization to specific downstream sales initiatives
･ Optimization of tire performance and costs, starting with raw materials in the upstream areas of the supply chain, and connecting this optimization to specific downstream sales initiatives
(b) Horizontal expansion on a global basis
･ Expansion of tire operations in emerging markets (China, India, etc.)
･ Business development in mature countries targeting improvement of Group income
･ Expansion of tire operations in emerging markets (China, India, etc.)
･ Business development in mature countries targeting improvement of Group income
d. Selection and concentration in diversified products operations
e. Enhance environmental activities and environmentally friendly products
(a) Clarification of the direction of Bridgestone's environmental aspirations targeting the realization of a society that possesses the three characteristics of being in harmony with nature, recycling, and having low carbon usage
(b) Enhance lineup of fuel-efficient ECOPIA tires, including passenger car tires and truck and bus tires, and promote the sales of these products on a global basis
(b) Enhance lineup of fuel-efficient ECOPIA tires, including passenger car tires and truck and bus tires, and promote the sales of these products on a global basis
3. MTP 2011 Target Performance
(1) ROA
･ 2012: Forecast 6%
･ 2013 and afterwards: "Improve further" as target
･ 2013 and afterwards: "Improve further" as target
(2) Net Sales
･ 2012: ¥3.6 trillion
･ 2013 and afterwards: Yearly average over 5% increase
･ 2013 and afterwards: Yearly average over 5% increase
(3) Operating Income Ratio
･ 2012: 7.5% (¥270 billion)
･ 2013 and afterwards: Yearly average over 0.5 point increase
･ 2013 and afterwards: Yearly average over 0.5 point increase
Target 10% in 2016
(Reference): Factors behind operating income increase (2009 to 2012)
| ･ Expansion of strategic products | : +¥67.0 billion |
| ･ Rationalization | : +¥46.0 billion |
| ･ Diversified product business | : +¥33.0 billion |
| ･ Unit increase, others | : +¥49.0 billion |
Note:
* Runflat tires continue to operate at a limited speed for a specified distance under normal conditions at 0kPa air pressure. Runflat tires enhance driver control in the event of a sudden loss of air pressure, as with a puncture. In addition, runflat tires eliminate the need for a spare (emergency use) tire. Eliminating the spare tire typically helps to make vehicles lighter, improves fuel consumption, and contributes to resource conservation, while also allowing automakers greater latitude in vehicle design.
About Bridgestone Corporation:
Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires for use in a wide variety of applications, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world.
Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires for use in a wide variety of applications, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world.
