About Bridgestone Corporation:
Bridgestone Corporation, headquartered in Tokyo, is a global company focused on delivering advanced mobility and solutions to customers around the world. In addition to tires and solutions for use in a wide variety of automotive and mobility applications, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Bridgestone products are sold in over 150 nations and territories around the world.
News - 2021
Bridgestone Announces Mid-Term Business Plan (2021-2023)
2021/02/16
- Bridgestone has established 2021-2023 Business Plan aimed at securing a competitive edge through efforts that support the mobility and movement of people and objects and create social and customer value.
- Positioning sustainability at its core, Bridgestone will take an aggressive approach in executing its plan to address social and environmental challenges facing society.
TOKYO (February 16, 2021) -- Bridgestone Corporation (Bridgestone) today announced that it has established Mid-Term Business Plan covering the three-year period from 2021 to 2023.
The Bridgestone Group recently put forth its vision of "Continuing to provide social value and customer value as a sustainable solutions company toward 2050," and the Mid-Long Term Business Strategy is being implemented to realize this vision. Positioning this strategy as a central component, the Mid-Term Business Plan further defines more concrete targets and actions aimed at securing a competitive edge through efforts to support the mobility and movement of people and objects, while also creating social and customer value. With an eye to 2030, Bridgestone will execute the Mid-Term Business Plan while taking an aggressive approach in executing its plan to address social and environmental challenges facing society.
Overview pertaining to the Mid-Term Business Plan are as follows.
1. Numerical Targets
| 2020 (Full-Year Performance) | 2023 (Targets) | |
| Revenue % of revenue from solutions businesses |
¥2,994.5 billion 16% |
¥3,300 billion level 20% level |
| Adjusted Operating Profit Operating margin |
¥222.9 billion 7.4% |
¥450 billion level 13% level |
| Profit Attributable to Owners of Parent | - ¥23.3 billion | ¥290 billion level |
| ROIC | 5.5% | 10% level |
| ROE | -1.0% | 12% level |
2.Business Portfolio and Major Measures
(1) Bridgestone will manage its business portfolio comprised of core business, growth business, and exploratory business centered on sustainability, while allocating around ¥700.0 billion worth of strategic resources to these business areas.
| ・Core business (tire business) |
- | Rebuild earnings power through expense structure reformation, business portfolio and manufacturing footprint restructuring, resource reallocation, and enhancement of premium business strategies |
| ・Growth business (solutions business) |
- | Accelerate global expansion of subscription model, retread strategy and Webfleet Solutions |
| ・Exploratory business (new business fields) |
- | Creation of systems for the future development of businesses in fields where Bridgestone can utilize its core competencies, such as recycling and soft-robotics businesses |
(2) For core business and growth business, Bridgestone has defined four business categories based on a diagnostic of the respective regions, business characteristics, and maturity of mobility options, thereby clarifying the positioning of each business, their roles within Group management, and the related resource allocation and profit contribution policies.
| Category | Business | Positioning / Role | Resource Allocation / Profit Contribution Policies |
| 1. "MAIN" | N.America Tire/Solution Business Mining Tire/Solution Business Japan Tire/Solution Business |
Expansion of solutions business built upon strong core business, acceleration of value amplification | Resource allocation: Proactive investment Profit contributions: Maximization |
| 2. "NEXT" | China Passenger Car Tire Business L.America / India Passenger Car Tire Business / Asia-Pacific / Middle East Tire Business |
Starting contributions to the Group | Resource allocation: Step-by-step investment Profit contributions: Foundation building |
| 3. "STRATEGIC" | Europe Tire/Solution Business Aviation Tire/Solution Business |
Building of a framework for strategic synergies and contributions to group global | Resource allocation: Limited investment Profit contributions: Foundation building (profitability stabilization) |
| 4. "DEVELOPING" | China Truck & Bus Tire Business India Truck & Bus Tire Business Russia / Africa Tire Business |
Stabilize profitability | Resource allocation: Minimum investment Profit contributions: Foundation building (Breaking away from deficits) |
(3)Bridgestone is committed to accelerating initiatives based on its Sustainability Business Framework*, which is oriented toward contributing to the realization of a carbon neutral society and the creation of a circular economy.
| Initiatives | 2030 (Targets) | 2050 (Targets) |
| Reduce CO2emissions to achieve mid-term environmental targets Milestone 2030 - Reduction of emissions - Contribute to emission reductions |
- 50% reduction in CO2 from 2011's level - Contribute to reducing more than 5x our emissions |
- Carbon neutral state |
| Contribute to the creation of a circular economy across the value chain and the product lifecycle - Improve material circularity - Maximize resource/tire value |
- 40% rate of materials using recycled and renewable resources | - 100% sustainable materials |
The first year of the Mid-Term Business Plan, 2021, is also the second year of the "Third Foundation (Bridgestone 3.0)" of the Bridgestone Group, which follows its First Foundation in 1931 and the Second Foundation marked by the merger of Firestone Tire and Rubber Company in 1988. The Third Foundation signaled the evolution of Bridgestone into a sustainable solutions company. Bridgestone will also celebrate the 90th anniversary of its first founding in 2021. As it advances past its 90th anniversary, Bridgestone will continue to position sustainability at the core of its management as it seeks to grow into a sustainable company together with society and customers.
For more information on Bridgestone's Mid-Term Business Plan, please refer to the presentation materials available on Bridgestone's global website.
* For more information, please refer to the news release entitled "Bridgestone Announces Sustainability Business Framework" issued on January 14, 2021.