24MBP Business Shaping Scenario

Create Good BusinessIn the third business shaping scenario of “Create good business”, we take on the challenge to balance social value and customer
value creation, gain competitive advantage and create corporate value by reducing business cost across the value chain,developing a new premium tire business model with channel power reinforcement, and establishing sustainable premium brand.

Reduce Business Costs Across the Entire Value Chain
Bridgestone E8 Commitment

EnergyEcology

Efficiency

In the 24MBP, Bridgestone aims to reduce businessEconomyOverall picture of business cost reduction

costs by a total of approximately 100 B JPY through fiveactivities, including BCMA, shifting to “Green & Smart”,
steady productivity improvements mainly at production
sites linked with “create good tires”, in addition to global

BCMAprocurement in the upstream of the value chain and global
SCM (supply chain management) logistics transformation in
the downstream.

Shift to Green & Smart
Steady on-site productivity improvements

Global procurement

Global SCM logistics transformation

24MBP (2024-2026)

52

Global Procurement
Streamline development and supply chain by sharing modules
Primary effect: Reduce changeover of materials, parts, and equipment byproduct and streamline development by sharing of modules

In global procurement, we pursue streamlining supply
chain and benefits from our scale merit based on building

Secondary effect: Benefit from evolution of R&D and manufacturing by BCMA
deployment such as improved capacity in production process and reduced
workload at production sites

relationships of trust and co-creation of value (win–

Shift to Green: Reduce energy Gentan-i (energy consumption per unit)

sustainable procurement in addition to reducing business

Shift to Smart: Improve productivity by promoting automation

cost, we will strengthen our comprehensive partnerships

Improve productivity by reducing direct material losses and equipmentinduced losses benefiting from thorough streamlined production,
also maximizing production capacity of existing equipment.

win) with our global strategic partners. Furthering ourcollaboration with global strategic partners in terms offor sustainable value creation.

Raw material: Reinforce global approach• Global strategic partners: Build trust based on empathy – To co-create value (Win-Win)• Promote global procurement – Streamline supply chain and pursue benefit from its
scale merit• Value creation linked with initiatives for sustainability and BCMA

Streamline supply chain: Inventory reduction and producing close to where
products are (linked with BCMA)
Streamline through co-creation with customers: Improve warehouse footprint,
increase direct delivery from plants to customers
Promote automation: Introduce warehouse automation equipment andimprove efficiency of loading and unloading operations

Over 100 B JPY level in total

Bridgestone 3.0 Journey 2024 Integrated Report53

24MBP Business Shaping Scenario: Create Good Business

Sustainable Procurement
Bridgestone is striving to realize a sustainable society and tobuild foundation of sustainable value creation across the

Taking into account the changing business environment,

value chain simultaneously. We are focusing on sustainable

Bridgestone has placed an enhanced focus in procurement

procurement of natural rubber, in light of its impact on

activities on the creation of new value, including ESG, insociety and business. Natural rubber is a key raw material in

addition to conventional value centered on QCD (Quality,

tire manufacturing and is an essential renewable resource

Cost, Delivery). We believe it is important to reinforce

for producing high-quality tires. Also, it is a renewabledialogue with our suppliers and co-create new value, withresource that provides livelihood opportunities for millions
of people around the world. It is said that more than 6

the “Bridgestone E8 Commitment” as the axis.
For example, regarding natural rubber, one of the
raw materials for which there are high social demands

million people are involved in the cultivation of natural
rubber. Therefore, efforts toward sustainability of natural
rubber are recognized as our crucial management issue forbusiness continuity.
Most natural rubber is cultivated by farmers in Southeast
Asia, where rubber trees are planted on small farms andfor sustainability, we are working collaboratively with
our suppliers to improve traceability and are actively
working to solve social issues throughout the supply
chain, including smallholder farmers. We will continue
to deepen our cooperation with our suppliers toenhance sustainability.

large plantations. Demand for natural rubber has beensteadily increasing globally over the years, and we believethat sustainable procurement requires increasing yields andimproving the livelihoods of small farmers while protecting
forests.
In 2022, Bridgestone formed the Capacity Building Task
Force, bringing together relevant functions to strengthen
capacity building initiatives for smallholders. Leveraging thetechniques and knowledge accumulated from ourMasashi Omae
Director
Global Procurement Divisionexperience in managing our own natural rubber farms, in
2023, we provided trainings and technical support tosmallholders, reaching 5,640 smallholders, and otherprojects organized in support of increasing production

Capacity Building Projects with WWF

volume as well as income diversification. In order toaccelerate the corporate initiatives, we have set the global
strategy with a medium-term goal, which is to provide

In 2024, Bridgestone, in partnership with WWF Japansupport for 12,000 smallholders aiming to increase yields

Indonesia, launched a project to provide technical training

and the livelihoods of small farmers and protect forests by

towards that contributes to improved yields of natural rubber

2026. The goal is in line with Global Platform for Sustainable

smallholders in Riau and Jambi provinces in Indonesia, with a

Natural Rubber (GPSNR)

view toward medium-term cooperation. We plan to conduct a

standards.

Our sustainable procurement initiatives are grounded in our
Global Sustainable Procurement Policy

and aligns withseries of technical training sessions in 2024, ranging fromland preparation and nursery to natural rubber latex coagulum

our goal of using 100% sustainable materials1 by 2050 andcollection by cup lump. In the first quarter of 2024, experts

beyond. We established the goal and KPI of 100% of Tier 1

from our natural rubber farm in Indonesia and Technicalsuppliers will have acknowledged the revised Global

Center in headquarters trained 10 smallholders from Kuantan

Sustainable Procurement Policy. (As of March 31, 2024, 87% ofSingingi Rubber Farmers Association (APKARKUSI) in Riau

Tier 1 tire material suppliers had done so.)province and five smallholders from Jambi province on

1. Bridgestone defines sustainable materials as materials “1) that come fromresources with a continual supply, 2) that can be used as part of our businessover the long-term, and 3) that have a low environmental and social impact overthe lifecycle from procurement to disposal.” For details on sustainable materials,
see below

tapping techniques, fertilization and pruning, and disease

Websitetrainees as instructors, and establish an arrangement to2L ong-term environmental vision (2050 and beyond): Towards 100%
sustainable materials
https://www.bridgestone.com/responsibilities/environment/resources/

2. Suppliers that supply materials directly to Bridgestone

control. With the aim of further expanding the impact ofactivities, Bridgestone will standardize yield improvement
techniques tailored to various farm conditions, train these 15
disseminate these techniques to more smallholders. Throughthese efforts, we will contribute to the sustainability ofnatural rubber.

54

and

executive committee member, taking part in the Capacity
Most of our member farmers are conventional and have

Building and Smallholders Working Group, being actively

not had an opportunity to learn the relevant skills to

involved in the discussion around GPSNR’s Sharedproduce natural rubber, including taking care of young

Responsibility Framework, and also GPSNR’s Assurance

rubber trees, tapping, coagulating and collecting cup

System. Our active contribution will lead to help thelumps, and fighting disease.

industry tackle the vast and complicated issues in ensuring

I really appreciate Bridgestone and WWF for providing
the training for the farmers to learn such skills. It gives
us understanding in Good Agricultural Practices ofnatural rubber production.
With regular, continuous and comprehensive followup training in efforts to maintain the existence anddevelopment of natural rubber, we expect the training
will ultimately increase the income and livelihood ofrubber farmers as well as sustainable natural rubber
production in Kuantan Singingi Regency.

a sustainable natural rubber supply chain.

Preparation for EUDR Compliance
Bridgestone has set up a global structure in order to
respond timely and swiftly to the EU Deforestation
Regulation (EUDR) requirements and is also actively
engaging with industry networks, such as GPSNR andEuropean Tyre and Rubber Manufacturers’ Association(ETRMA), to clarify and compile a common industry viewon the content of regulations and support smallholders
who support production.

Enhancing Traceability of Natural Rubber
Supply Chain
Syoffinal
Advisor of APKARKUSI(Kuantan Singingi Rubber
Farmers Association)

Our commitment to the continuous improvement of our
natural rubber supply chain’s traceability is unwavering.
Since 2019, we have closely collaborated with suppliers tofoster a deep understanding of the significance of supply
chain mapping, particularly down to the smallholder level.
By 2023, we achieved a significant milestone: 34% of our
natural rubber supply chain was traceable to smallholders
based on supplier self-declarations. By integrating digital
tools, we aim to gain a more comprehensive and accurate
understanding of our supply chain.

Training scene of tapping techniques and medicine application

Global Platform for Sustainable Natural Rubber (GPSNR)
https://sustainablenaturalrubber.org/

Global Sustainable Procurement Policy
www.bridgestone.com/responsibilities/social/procurement/pdf/Policy_English.pdf

Global Platform for Sustainable
Natural Rubber
GPSNR, a multi-stakeholder organization serves as an

W WF Japan
https://www.wwf.or.jp/eng/European Tyre and Rubber Manufacturers’ Association (ETRMA)
https://www.etrma.org/

effective platform for collaboration, sharing resources andknowledge, and uniting Bridgestone’s efforts in enhancing
sustainability of the natural rubber industry with other tiremakers, automakers, smallholders, processors, andproducers, civil society.
Bridgestone donated 60,000 USD to GPSNR to support
initiatives led by GPSNR for smallholder capacity building
to be conducted in 2023. In addition, Bridgestone plays
multiple roles in GPSNR including being a founding andBridgestone 3.0 Journey 2024 Integrated Report55

24MBP Business Shaping Scenario: Create Good Business

Global Supply Chain Management / Logistics Transformation
EnergyBridgestone E8 Commitment

Ecology

Efficiency

EconomyIn Bridgestone’s global supply chain management, Bridgestone focuses on premium production in response to the expansion
of ENLITEN and PS HRD tire sales. While promoting local production for local sales in PS and TB tires as our principle, we arebuilding a structure which aims for global optimization by adapting with agility and flexibility to changes and geopolitical risk.
Within the 24MBP, the ratio of local production for local sales is planned to be 90% for PS and 80% for TB globally.
Based on this premise, Bridgestone EAST contributes to our global business as global premium tire supply sites. In
particular, Japan plays the role of supporting the premium tire business in global as core of manufacturing, producing PS and
TB premium tires and tires for aircraft and mining, which require high technological capability.

Focus on Premium—Promote Building Supply Chain Management which Responds to Premium Focus and Change
24MBP
Ratio of local
production for
local sales (global)
Ratio of premium
tire production(global)PS

Aim for global optimization by ensuring agility& flexibility capable of adapting to changes andgeopolitical risks, while keeping “local production
for local sales” as our basic principle

TB
90%

ENLITEN ratio (PS)
2023: 4% → 2026: 40%

80%
ENLITEN ratio (TB)
2023: 5% → 2026: 35%

HRD ratio (PS)
2023: 45% → 2026: 55%

Aim for optimal sourcing with Bridgestone EAST
(Japan & Asia) as the core
Global contribution as global premium tire supply sites

Bridgestone EAST –Responds to growing market• Reinforce production capacity for India PS
premium tires⇒ Strengthen position as a market leader
Place Japan as the “core of manufacturing”
Support the premium tire business globally
Main export products

Bridgestone EAST
Ratio of AC & OR
tires productionin Japan• High-difficulty specialties tires that require technological &comprehensive capabilities: AC & OR tires• PS & TB premium tires

80%

Growing Market: India Premium Tires
In India, a growth market, as part of the 24MBP, we will
invest in expanding production capacity to 10 million tiresIndia PS Premium Tire Production(Indore + Pune Plant)by 2026, to strengthen our market leader position basedon expansion of premium tire sales volume, sales mix, andmarket share of PS premium tire.
Bridgestone established our Indore Plant in 1996

Production volume
ENLITEN production ratio
HRD tires production ratio(17 inch and above)

To a scale of 10 M units in 2026

Production
volumeApprox. 130%
vs. 2021

and Pune Plant in 2013, and has built a strong businessfoundation based on Genba (on-site) and local production
for local sales. We continue to focus on PS premium tires

HRD tires ratio
Approx. 25%

and maintain and reinforce our market leader position
through strengthening our lineup of Dan-Totsu products by

ENLITEN ratio
Approx. 20%

introducing new ENLITEN products in 2024, strengthening
our sales channels, especially family channels and strategic
partners, and strengthening our brand power linked withsustainable global motorsports activities.

56

2021

2022
21MBP

2023

2024

2025
24MBP

2026

Global Supply Chain Logistics Transformation:
B-DirectThrough global supply chain logistics transformation,

Spread the Benefits Upstream andDownstream in the Supply Chain—Maximize Effectiveness and Efficiency
Across the Entire Supply Chain

which we have named B-Direct, we promote to reducebusiness cost and create social value and customer value.

In addition to logistics transformation, we are pursuingThis will be done by realizing production close to where

maximization of effectiveness and efficiency across the

products are sold, lean inventory, increased ratio of direct

entire supply chain, including enhancing global procurement

delivery, and Green & Smart logistics, linked with BCMAin upstream of the supply chain while improving sales

and DX.

forecast accuracy by strengthening sell-out management indownstream of the supply chain. We will create value

Supply Chain Efficiency (Inventory Reduction/
Local Production)
Link between the expansion of BCMA deployment andimprovement of manufacturing flexibility– Promote in producing tires close to place of demand– Efficient production planning linked to sales timing
through improvement of manufacturing flexibility
Reduce inventory

Customers and Factories Directly Connectedwith Data and Products

globally, however particularly in Japan, including throughnew challenges such as maximizing sales opportunities andstrengthening links with production through improved
demand forecasting for winter tires using AI.

Creating social value linking with businessWe contribute to sustainability, including becoming
carbon neutral, by streamlining the supply chain andpromoting green logistics through B-Direct.

Strengthening the SCM platform through DX– Direct connection with customers’ system andinventory data to realize timely supply (direct
delivery) from Bridgestone’s plants to customers

Promote Green & Smart Logistics
Green Logistics:– Introduce EV trucks, warehouses with solar power
generation– Reduce CO2 emissions through more efficient marinetransport
Smart Logistics:– Promote introduction of automated equipment in
Improvement of safety and efficiency
warehousesof warehouse operations

Through these efforts, we plan cost improvements ofapproximately 10% in 2026 from 2023.

Bridgestone 3.0 Journey 2024 Integrated Report5724MBP Business Shaping Scenario: Create Good Business

New Premium Tire Business Model: Strengthen Channel Power
Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extension

EconomyEase

The key to “create good business” is channel power. As part of the new premium tire business model, we are focusing value
creation by expanding our retail & service solutions network, which combines family channels and strategic partners, mainly
in North America and Japan, linked with “create good tires” with a focus on fusion of ENLITEN and BCMA.
We aim to amplify the value of our Dan-Totsu products during customers’ tire use, enhancing customer experience value (UX)
by staying close to them and recommending better tires and better use of tires, and enhancing retail sites as the important
touchpoints with customers.
 trengthen Channels which Create Social Value and Customer Value, being Attentive to Customers and Markets: Realize
S
Reinforcement of Earning PowerUP

Channel power Family channel + strategic partners

Enhance value
Create value
Improve sales mix(Retail & service solutions network: Increase customer experience value)

Equity stores in the U.S.

Equity stores and family channel in Japan

Strategic partners
Equity stores: Approx. 2,220 stores* in 2023
Approx. 2,240 stores in 2026

BtoC
(For PS)

BtoB(For LT & TB)

Improve business quality- Develop a new store format that improves
customer experience value through real x digital- Real: Enhance sites- Digital: Promote DX of business systems
Develop new channel in collaboration withstrategic partners

Reinforce approx. 1,200 sites in service network
Link with expansion of mobility tech business“Fleetcare” program—Enhance capabilities forand EVs
Link with last mile solutions for BtoB (for LT)
Link with retread (for TB)

Base technology for
R&D and manufacturing

Ultimate customization
Differentiation
New premium
Base technology for
product design

Enable cost reduction indevelopment and production,and improve agility

Strategic partners
B-select (for PS):
2023: Approx. 800* ⇒ 2026: Approx. 1,000- Be attentive to customers more than ever on-site
Reinforce channel through real x digital:- Restructure wholesale sites ⇒ Shift to retail- Launch e-commerce “Bridgestone tire online store”
Strengthen channel in collaboration with strategic
partners

Enhance service network linked with “TPP”
solution and retread
B-Select (for TB):
Approx. 400* ⇒ 2026: Approx. 500—Enhance being attentive to customers on-siteand solve their problem—

Enabler that supports growth of the premium tire business and solutions business

Expandtire performance
spider chart“Sharpen Edge”

Fusion Business cost reduction(Reduce cost +environmental impact)

Simplification

DOWN

Increase product power— Generate customer delight —Newbrand power

Dan-Totsu R&D
and manufacturing
power

Globalprocurement power

Global
SCM power

Co-creation withsustainability partners* PS: Passenger car tires, LT: Light truck & bus tires, TB: Truck & bus tires * As of the end of 2023

U.S. Retail Equity Stores Business:
Take on the Challenge of a New Store Format
Evolving by Real x Digitalenhancing EV maintenance, and charging service, andconducting EV maintenance training for store technicalstaff, linked with ENLITEN, “New premium in the EV era”. We
are also reinforcing our sustainability efforts by introducing

In the U.S. retail equity stores business, we are taking on
the challenge of developing a new store format evolving
by the combination of real and digital capabilities,
strengthening to provide premium customer experiencevalue and to contribute to sustainability. First, in 2024, we
conduct an initial trial. We are enhancing digital service
which completes the entire customer experience fromproposal of optimal products & services, order, operation
appointment, payment, to after service, seamlessly on theapp. We are also promoting to strengthen premium tires
and service specialized for EVs through such initiatives:58

New store format in the U.S.

solar power panels and advanced LEDs, optimizing energy
use such as air conditioning, and recycling end-of-life tires
and oil at retail stores. We identify services that can provide
value to our customers through conducting the PDCA cycle
and are gradually expanding to 2,200 equity stores in the
U.S. in 2025 and 2026, leading to improve the quality of ourservices.

Creating social value linking with business
For the new store format in the U.S., in addition
to adding value to the customer experience weprovide, we are also strengthening our provision ofsustainability and social value, such as by installing
solar panels.

At Bridgestone Retail Operations in the U.S. we continue to drive innovation in the automotive
aftermarket. Our next-generation retail experience will elevate end-to-end customer satisfaction
through efficient, digital solutions and a modern, physical store environment. Trust will be built
through the transparency, reliability, and expertise of our 20,000 retail teammates. As we lookahead to an exciting retail future, we will evolve our service with customers at the center.

David Nientimp
Vice President
Marketing, Merchandising and Retail Transformation, Bridgestone Retail Operations

Global Expansion of Our Retail & Service
Solutions Network

Strengthen Japan Retail Business:
In Japan, we are expanding B-Select, a new network of
stores accompanying each customer on-site and providing

Globally, we are expanding our retail & service solutions

the high-quality services and solutions. We are also

network by real x digital. We are improving the quality

strengthening our efforts to provide optimal proposals

of business in the retail & services business whileand high-quality services through connecting directly

strengthening our contribution as an enabler of growth forwith customers through the Bridgestone tire online store,

the premium tire business and the solutions business.

leveraging “real” and “digital” capabilities.

Global Expansion of our Retail & Service Solutions Network

Approx.
Network for PS

19,400Americas

Approx.

9,300

Japan

Approx.

1,800

Approx.
sites

Network for TB

Europe, Middle East,
and Africa

Approx.

3,500

Americas

Approx.

Asia-Pacific,
India, and China

Approx.

4,700

4,700

Japan

Approx.

1,200

7,900

Approx.
sites

Europe, Middle East,
and Africa

Approx.

1,200

Network for OR

130

Includes solutions, services,
sales, partners, etc.
On-site service sites

Asia-Pacific,
India, and China

Bridgestone + Otraco

Approx.

Approx.

900

sites

70 sites

Digital platform

Tire monitoring system

Tire database platform* PS: Passenger car tires, TB: Truck & bus tires, OR: Off-the-Road tires

Digital fleet solutions

Retread tire production
management system

Data as of the end of 2023. Number of stores include equity stores, franchise, voluntary chains and special contract dealers

Bridgestone 3.0 Journey 2024 Integrated Report5924MBP Business Shaping Scenario: Create Good Business

Build Sustainable Premium Brand: Reinforce Sustainable Global Motorsports
Bridgestone E8 Commitment

EnergyEcology

EmotionOur motorsports activities are positioned as our “origin” as a tire manufacturer. Our motorsports activities started with ourparticipation in the first Japan Grand Prix in 1963, expanded globally through our challenges in a wide range of races such as
participation in Formula 1®, and marked our 60 th anniversary in 2023. What we refined through such challenges—our “Passion
for Excellence”, our tire development expertise, monozukuri (R&D and manufacturing) power, brand power and talent—makeup the foundation of our premium tire business to this day. The contribution to the brand has been particularly significant,becoming the driving force that enables Bridgestone to be recognized as a global premium brand.
In the 24MBP, linked with the reinforcement of sustainable global motorsports activities, we will support value enhancementby evolving Bridgestone from a premium brand to a “sustainable premium” brand built with Bridgestone and ENLITEN.
Bridgestone will continue to empower each and all to achieve their best and aim to be essential to the future of mobility.

Towards a Sustainable Premium Brand:“Passion to Turn the World”

for excellence,” and accelerating innovation, as well as our
passion to support a sustainable mobility society together
with our partners, through motorsports. By demonstrating60

In marking the 60 th anniversary of our motorsports

our challenge and pursuit of excellence, including ouractivities, we reaffirmed our passion for motorsports, andefforts towards sustainability, we strive to foster empathy

expressed our determination to evolve these activities

and trust among our stakeholders. By proving our value asplacing sustainability at the core with our new message,

sustainable premium, and being recognized for it by our“Passion to Turn the World”. The phrase encapsulates

stakeholders, we enhance our brand value in alignment

Bridgestone’s passion to race, passion to win, “challengewith the business strategies in each region.

Leading to Drive Sustainability
We aim to transform the entire company by leading toContribution to the Technological
Development of ENLITEN Generation 2
as a “Mobile Laboratory”

drive sustainable value creation starting from sustainableglobal motorsports. We will first drive sustainability acrossLeveraging sustainable global motorsports as a “mobile

the entire value chain of motorsports tires all at once, fromlaboratory”, we will drive development of ENLITEN Gen 2

raw material procurement to recycling.

technology, which is scheduled to be launched in the market
from the 27MBP. In the Bridgestone World Solar Car

Value Chain Initiatives across Motorsports Tires– Raw material procurement:
Recycled and renewable material ratio:
Aim for 65% or more

Challenge, an event featuring solar-powered cars that
Bridgestone supports as the title sponsor, we plan to
introduce motorsports tires equipped with ENLITEN Gen 2
technology in 2025. Meanwhile, in the Bridgestone FIA Eco– Production and Logistics:
Take the lead in promoting carbon neutrality
Production using 100% renewable energy
CO2 reduction through green logistics(in land and sea)

Rally Cup, where ordinary drivers participate in zero-– Recycling:“Renew” tires to raw material
Strive to realize chemical recycling

sustainable technology through our participation in the ABB

emission vehicles, we are not only supporting EVs but also
taking this as an opportunity to listen to the voices of ourtire users, linking the event to development of ENLITEN
products and technology. Furthermore, we will refine the
FIA Formula E World Championship, which will start fromthe 2026-2027 season, as sole tire supplier.

Bridgestone World Solar Challenge
As a forerunner in Bridgestone’s efforts toward sustainable global motorsports,
Bridgestone has been the event’s title sponsor since 2013. In the event held in October
2023 in which we marked 10 years of our sponsorship, we introduced ENLITEN-equippedtires for the first time in motorsports. Staying close to participating teams to deeply understand the harshconditions of driving across approximately 3,000 km from Darwin to Adelaide in Australia with limited electricity
from solar power as well as the characteristics of solar cars, we empowered the best performance of theteams who fitted our tires, by customizing the performance that sharpens edge in high rolling resistance, wear
resistance and light weight. Furthermore, we were able to demonstrate our sustainable technology at the sametime, by doubling the recycled and renewable material ratio to 63% from the previous race (2019). Regarding thetransportation of tires, too, we worked with DHL to realize carbon-neutral transportation. We will continue to
evolve for the next competition.

The BWSC is an extraordinary collaboration of bright young minds driven by a passion
to realize a greener, cleaner future. Through designing new technologies for sunpowered electric vehicles, the vehicles themselves are spectacular, however theimportance lies in the many innovations developed by the students, that are later
adopted across multiple industries. It is incredibly inspiring to be a part of.

Joanne Hayes
Head of Sustainability and Corporate Communications,
Bridgestone Australia and New Zealand

Bridgestone 3.0 Journey 2024 Integrated Report61