Bridgestone Released Mid-term Management Plan 2008

Bridgestone Corporation has released details of its “Mid-term Management Plan 2008” (MTP2008), which covers the period 2009 through 2013. The outline of the plan is as follows.

1. Basic Approach to MTP2008 Formulation

Bridgestone has formulated MTP2008, which covers the period 2009 through 2013, which is one year further on from MTP2007 (2008 to 2012). In making the revisions, Bridgestone updated and added initiatives in response to recent changes in the business environment, including changes in demand trends and the cost environment, in order to achieve the goals set in MTP2007.

2. Progress from MTP2007

(1) Expand tyre strategic products

Bridgestone has positioned various lines as tyre strategic products, namely run-flat tyres, ultra-high-performance tyres, winter tyres for passenger cars, Greatec and low-profile radial tyres for trucks and buses, and radial tyres for large off-the-road vehicles, aircraft and motorcycles. Contribution to operating income increase by expanding these strategic product groups is projected to exceed that of MTP2007.

(2) Further enhance eco-friendly products

With regard to tyres, Bridgestone will accelerate development of Ecopia product lines that are equipped with technology which reduces rolling resistance as a means to provide more fuel-efficient tyres and contribute to reductions in carbon dioxide emissions.

Additionally, Bridgestone projects ongoing high growth in the market for solar modules, which are gaining attention as a viable alternative energy, and as such, seeks to aggressively invest resources in this area. This includes investment to increase production capacity of EVA (ethylene vinyl acetate) film for solar modules, as previously announced.

(3) Develop solutions business utilising retread business

Bridgestone is working on a strategy to expand retread business globally in line with the degree of maturation of retread in respective markets, utilising the Bandag retread business, which was acquired in 2007.

(4) Reinforce fundamental competencies

The domains of examination in the plan have been increased relative to MTP2007, which focused on product development, to include an in-depth review of procurement and various technologies, such as production technology. Through this, Bridgestone aims to further reinforce its fundamental competencies.

(5) Optimise Diversified Products business domains

With the objective of establishing optimal business domains, Bridgestone has determined the positioning of each of its businesses in order to address and implement its strategy of “selection and concentration”. In businesses marked for “concentration,” Bridgestone will vigorously invest management resources and focus on promising product groups with a view towards globalisation. Bridgestone will withdraw from “selected” businesses at the optimum timing based on a spirit of CSR (Corporate Social Responsibility), while prioritising consideration of customers and business partners.

(6) Further enhance CSR systems

To further enhance CSR, Bridgestone will clarify the targets, and the divisions responsible, for each of 22 specific themes previously identified and convert them to concrete implementation plans.

(7) Strengthen environmental activities

Based on the five activity areas and three programs announced in MTP2007, Bridgestone will continue to implement comprehensive environmental management activities as a business group.

(8) Enhance competitiveness throughout supply chain

Bridgestone will promote full utilisation of GLC (Global Logistics Center) functions targeting the entire lifecycle, from product release to completion of sale. By advancing procurement activities, making full use of internally manufactured raw materials and equipment, and effectively utilising production and logistics functions aiming for consistent total optimisation at the global level, Bridgestone will further strengthen its ability to exploit its superior competitiveness over other companies throughout the entire supply chain.

3. MTP2008 Targets

(1) Achieve ROA of 6% in 2012 in line with the plan

Bridgestone forecasts ROA of 6 per cent in 2012 as planned in MTP2007. Efforts will be made to further elevate this figure to a higher level in 2013.

(2) Secure net sales of 4.3 trillion yen in 2012

In terms of net sales, Bridgestone aims to exceed its MTP2007 goal of 4.0 trillion yen, with 4.3 trillion yen in 2012. Bridgestone will seek to attain an even higher level in 2013.

(3) Realise operating income of 410 billion yen in 2012

Bridgestone will strive to realise operating income over the 400 billion yen mark set in MTP2007 and achieve 410 billion yen as of 2012. Again, Bridgestone will work toward the higher level in 2013.