Bridgestone 2008 Annual Report Download - page 11

The current state of each SBU and the GMP determines where
each organization needs to be in the future. Then, guided by the
vision set for the Bridgestone Group by the Global Head Ofce
(GHO), the SBUs, the GMP, and the GHO coordinate to formulate
truly effective initiatives. Moreover, to support the effective
implementation of those initiatives, the leaders of the SBUs
and GMP have full ownership of their respective management
responsibilities and functions. The essence of our MTP is not the
singular achievement of the numerical objectives themselves but
rather the implementation of initiatives that are developed through
the use of the SBU system.
Furthermore, the reason why I focus on the SBUs is that the
use of this organizational system facilitates change in such areas
as corporate culture and organizational constitution. Since the
introduction of the SBU system, employees are increasingly aware
of the key role they play in achieving objectives, and new and
encouraging results have been seen in a variety of facets of our
business. Moreover, the system has also strengthened our
approach to our markets and customers.
It goes without saying that human resources are the driving
force of corporate growth. The activation of our organization
through the SBU system also plays a major role in strengthening
our human resources.
CORPORATE VALUE AND SHAREHOLDER RETURN
The Company positions shareholder interests as an important
management issue. Accordingly, while bolstering our management
foundation, we work to improve our results and increase our
corporate value.
This commitment is incorporated in our fundamental
management principles of building an “earnings structure that
generates steady prots” and a “high-prot system with a balance
between protability and asset efciency.”
On the other hand, it is our policy to maintain stable, steady
dividends as a direct return of prots to shareholders. In line with
this policy, we have maintained stable dividend payments over the
past 10 years, despite uctuations in our performance. For the
scal year ended December 2008, we will pay a year-end dividend
of ¥11 per share, resulting in total dividends for the year of ¥24
per share.
In regard to retained earnings, our approach is to allocate them
to the maintenance and enhancement of production and sales
systems in Japan and overseas and to R&D activities. In this way,
we work to bolster our foundation to ensure a stable management
and business environment over the long term.
OUTLOOK
We expect the management environment to remain challenging
in the scal year ending December 2009. As a result, for 2009 we
are forecasting net sales of ¥2,530.0 billion, down 22%; operating
income of ¥45.0 billion, down 66%; and net income of ¥3.0 billion,
down 71%.
Our management environment and results certainly do not
lend themselves to an optimistic outlook, but neither are we overly
pessimistic. There is no question that the current situation is
difcult, but I am condent that the Bridgestone Group will ride
out these challenging times and return to a path of growth. We
will strive to use the changes in our operating environment in order
to trigger internal evolutions. To that end, we need to steadily
implement the MTP. We know what we need to do; now we need
to execute and focus on delivering results. We are condent that as
global economies recover, the Bridgestone Group will be well
positioned for growth and will emerge stronger than ever before.
The Bridgestone Group will continue to pursue the various
operational activities that have made it an industry leader, including
proactive responses to enhancing the environment, the quality of
its products and services, and its commitment to CSR. As we
achieve these goals, we believe we will meet the expectations of
our shareholders, investors, and all of our other stakeholders.
I ask for your continued support and understanding in the
years ahead.
April 2009
Shoshi Arakawa
Chairman of the Board, CEO and President
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