2024 Integrated ReportIndexMission, Corporate Philosophy, and Vision,
Bridgestone E8 Commitment............................................... 4
Overview of the Bridgestone Group........................................ 6
Bridgestone’s Mission of “Serving Society with
Superior Quality” and Our DNA............................................ 8

Global CEO Commitment............................................... 12
Mid Term Business Plan (2021-2023)—21MBP Summary.................................................... 22
Mid Term Business Plan (2024-2026)—24MBP...... 24
Value Creation Process—24 MBP....................................... 24
Positioning of the 24 MBP with the 2030 Long Term
Strategic Aspiration as its Road Map and the North Star..... 26
Changes in Business Environment and Strategic Direction...... 27
Response to Global Management Risk............................... 28
Summary of Global Management Indicators.......................... 30
New & True Glocal and Portfolio Management....................... 31

24 MBP Business Shaping Scenario:
Further Focus on Value Creation.......................... 34
Create Good Business Quality.................................... 36
Feature: Improve Management Quality and Working &Business Quality—Bridgestone DNA /Unique Deming Plan........................................................ 36
Talent Creativity Enhancement............................................. 38
Bridgestone’s DX............................................................... 40
Co-creation Leveraging Bridgestone Innovation Park............. 41
Intellectual Property Strategy............................................ 42

Create Good Tires........................................................... 44
From Volume to Value—Accelerating Focus on Premium........ 44Create “New Premium” —Premium Tires For Passenger Cars
—ENLITEN as New Premium in the EV Era......................... 46
R&D and Manufacturing Transformation: BCMA
(Bridgestone Commonality Modularity Architecture)........... 48
Feature: Global CTO message.............................................. 50

Editorial Policy
Reporting Scope

Create Good Business.................................................. 52

The Bridgestone 3.0 Journey 2024 Integrated Report has

Reduce Business Costs Across the Entire Value Chain........ 52

been published to further deepen mutual understanding

Sustainable Procurement.................................................. 54

through dialogue with stakeholders. It aims toGlobal Supply Chain Management /comprehensively communicate the Bridgestone Group’s(Some activities from before or after the period have also been included.)approaches and initiatives for enhancing corporate value• Organizational coverage: Bridgestone Corporation andover the medium to long term.

its subsidiaries and affiliates around the world.

Logistics Transformation................................................ 56
New Premium Tire Business Model:
Strengthen Channel Power........................................... 58
Build Sustainable Premium Brand:
Reinforce Sustainable Global Motorsports...................... 60

Create New Business Sowing Good Seeds for
the Future.................................................................... 62• Period: January 1, 2023 to December 31, 2023

For 2024, the first year of Mid Term Business PlanThroughout this report, “Bridgestone” refers to whole(2024–2026) (“24MBP”), Bridgestone has focused on

Bridgestone including all Group and related companies,

telling our value creation story in a more accessible andwhile “the Company” refers to Bridgestone Corporationconsistent manner, with the intention of expanding and(non-consolidated).

improving the content based on stakeholder feedback. In

Bridgestone Corporation is the parent company of the

Solutions Business.............................................................. 62

this report, we particularly emphasized 1) clearly

Bridgestone, which includes the following Strategic

Exploratory Business......................................................... 70

communicating value creation under 24MBP in line with

Business Units (SBUs).

Diversified Products Business.................................... 73
Building a Foundation for Sustainable
Value Creation............................................................. 74
Financial Strategy.......................................................... 82
Financial Targets by Area & Business Portfolio........................ 82
Capital Expenditure, Strategic Resource, R&D Expense...... 85
Management Focusing on Capital Cost and ROIC............... 87
Message from the Global CFO............................................ 88

its business shaping scenario, 2) showing the connections• Bridgestone Americas (abbreviated as BSAM) including the

between business strategies and sustainability with

United States, Canada, Latin America, the Caribbean

specific examples, and 3) conveying Bridgestone’s stanceand Liberia.

of focusing on co-creation, from management to on-site• Bridgestone Asia Pacific Pte. Ltd. (abbreviated as BSAPIC)(Genbutsu-Genba) employees.

including the Asia Pacific, India and China tire business.
• Bridgestone Europe NV/SA (BSEMEA): tire business in Europe,
the Middle East and Africa

In preparing this report, Bridgestone referenced the• BSJP: Japan Tire Business

International Integrated Reporting Framework of the IFRS

• BSDP: Diversified products & Exploratory

Foundation, the Guidance for Collaborative Value Creation• G-MICA: Global mining, industrial, construction, aviation tire

issued by Japan’s Ministry of Economy, Trade andsolutions

Industry, as well as the GRI Standards of the Global

Fostering Trust................................................................ 90

Reporting Initiative.

Stakeholder Engagement based on
Integrated Reporting..................................................... 91

Website and Report Information

In Harmony with Communities.......................................... 93

Please refer to the following websites for additional

Addressing Sustainability Issues........................................ 96

financial and non-financial information.

Governance...................................................................... 98
Compliance....................................................................... 98
Corporate Governance...................................................... 99
Feature: Interview with Independent Directors................ 104

Data................................................................................... 108
Financial Data.................................................................. 108
Non-Financial Data............................................................110

Forward-looking Statements
Website: Investor Relations

Forecasts based on projections and plans for the future

https://www.bridgestone.com/ir/

in this report contain unpredictable elements that may
cause fluctuations. As such, they do not constituteguarantees by the Company of the achievement of those
forecasts. Accordingly, actual business results may differ
substantially from the Company’s current assessment.

Website: Sustainability
https://www.bridgestone.com/responsibilities/

Corporate and Investor Information..................................113

About the Cover
The front cover design is a representative work of• Annual Securities ReportWebsite: IR Libraryhttps://www.bridgestone.com/ir/library/securities_report/“Bridgestone Design”. The beauty of a “circle” expresses
Bridgestone’s challenging spirit in pursuing a variety ofinnovations, including the development of its “new premium”
ENLITEN technology and sustainable value creation centered• Basic Policy on Corporate Governance, Report on the
Corporate Governance Code, and Corporate Governance
Structure

on sustainable global motorsports, which Bridgestone views

Website: Corporate Governanceas a “mobile lab”. By incorporating circles and circulation in its

https://www.bridgestone.com/corporate/governance/various design and its business models, these works become
the embodiment of Bridgestone’s transformation into asustainable solutions company.

2

Bridgestone 3.0 Journey 2024 Integrated Report3Mission, Corporate Philosophy, and Vision

Bridgestone E8 Commitment

Company Code:
Serving Society with Superior Quality
Shojiro Ishibashi

Environmental Mission Statement
To help ensure a healthy environment
for current and future generations...
We, the Bridgestone group, are committed to continually working toward a sustainable society
with integrity and in unity with our customers, partners, communities and the world around us.

Therefore, we are focused on three objectives.

Toward 2050, Bridgestone is evolving into a sustainable solutions company.
Born of our enduring Bridgestone values, this is our personal E8 Commitment

In harmony
with nature

Value natural
resources

Reduce CO2
emissions

To contribute to biodiversity through To continually improve natural resource
habitat enhancement, and throughconservation through operational
environmental education and research.
improvements and product design.

The Bridgestone group's
environmental mission covers
all aspects of our business.

Operations

To continually reduce emissions ofGreenhouse Gases, including CO2 fromour products complete life cycle.

to support the realization of a sustainable society.

Products andServices

Environmental Community
Communication Activities

TEAMS

TEAMS: Total Environmental Advanced Management System
TEAMS unites the group under a progressive management system
to help ensure a healthy environment.

Energy Committed to the realization of a carbon neutral mobility society.
Ecology Committed to advancing sustainable tire technologies and solutions

The Bridgestone Essence (Corporate Philosophy)

Safety Mission

Quality Mission

Environmental

www.bridgestone.com/corporate/philosophy/

Statement

Statement

Mission Statement

www.bridgestone.com/
responsibilities/social/safety_health/index.html

www.bridgestone.com/
responsibilities/social/consumer/
index.html

www.bridgestone.com/
responsibilities/environment/
vision/index.html

that preserve the environment for future generations.
Ef f ic ienc y Committed to maximizing productivity through the advancement of mobility.
Extension Committed to nonstop mobility and innovation that keeps people and the world moving ahead.
Economy Committed to maximizing the economic value of mobility and business operations.
Emotion Committed to inspiring excitement and spreading joy to the world of mobility.

Bridgestone 3.0 Journey

VisionEase Committed to bringing comfort and peace of mind to mobility life.
Empowerment Committed to contributing to a society that ensures accessibility and dignity for all.

Bridges tone E8 Commitment to Our Future

Toward 2050, Bridgestone continues to provide social value
and customer value as a sustainable solutions company.

4

For the sake of the Earth, which future generations of children have entrusted in our care.
Together with you.

Bridgestone 3.0 Journey 2024 Integrated Report5Overview of the Bridgestone Group
Bridgestone’s Business Portfolio (As of December 31, 2023)

Financial and Non-Financial Highlights (As of December 31, 2023)

Bridgestone’s business portfolio consists of four areas: Premium tire business as core business, solutions business as

Bridgestone has approximately 130 manufacturing plants and R&D facilities with premium tire (core business), solutions

growth business, exploratory business as sowing new seeds, and diversified products business. By leveraging Bridgestone’s(growth business), diversified products, and exploratory businesses in more than 150 countries and regions.

strengths and undertaking each business tailored to its unique characteristics, we are accelerating its transformation into “asustainable solutions company” as set out in our vision.

Premium Tire BusinessCore business

Locations

Produce and sell Dan-Totsu products• Passenger car tires• Truck and bus tires• Specialties tires:
Tires for off-the-road mining and construction
vehicles, aircraft, agricultural machinery,
motorcycles, etc.

Zaventem, Belgium
Akron, Ohio, U.S.
Rome, Italy

Tokyo, Japan
Nashville, Tennessee, U.S.

Yokohama, Japan
Pathum Thani,
ThailandSingapore

Solutions Business

Growth business

Amplify the value of Dan-Totsu
products during the stage ofcustomers’ tire use• Retail & service solutions and tire-centric solutions• Mobility tech business as strategic business:
Truck & bus solutions
Mining solutions and aviation solutions

Regional Head Offices
R&D Facilities

2023 Performance
Revenue

Exploratory Business—Sowing new seeds

4,313.8 billion JPY

Providing social value andsustainability at the core
• Recycle• Guayule• Soft-robotics• AirFree, etc.

10%China, Asia Pacific
26% Japan
19%
Europe, Russia,
Middle East,
India & Africa
44% The Americas

20%

Tire Production Volume

China, Asia Pacific(tonnage of rubber)

1.63 million tonnes

20%
Europe, Russia,
Middle East,

29% Japan
Tire production
volume(tonnage of rubber)by geographicalsegment (2023)
33% The Americas

India & Africa

Diversified Products Business

Sharply focus on areas where
Bridgestone’s core competencies
can be leveraged• Hydraulic and high-performance hoses andrubber tracks• Plastic piping and seismic isolation• Air springs• Sports: Golf balls and golf clubs• Cycle: Power assisted bicycles, bicycles, etc.

Revenue by
segment (2023)*1

14%
China, Asia Pacific

30% Japan*2

Consolidated Employees

125,199 people

16%
Europe, Russia,

Employees bysegment (2023)*1

Middle East,
India & Africa

40% The Americas*1 Region categories of revenue and employees are in accordance with the segment in the Annual Securities Report.
*2 Employees in Japan segment includes “Japan”, “Other”, and “Company-wide (common)” segments as presented in the Annual Securities Report.

6

Bridgestone 3.0 Journey 2024 Integrated Report7

Bridgestone’s Mission of “Serving Society with Superior Quality” and Our DNA
Ever since its founding in 1931, guided by the unchanging mission— “Serving Society with Superior Quality” — Bridgestone has been expanding and evolving its operations to meet the changing needs of society
and to continue supporting mobility and individuals’ lifestyles. Bridgestone’s DNA includes a “focus on quality,” “respect for being on-side,” “being attentive and supportive of customer problems,” andchampioning a “challenging spirit.” Our DNA has been shaped and refined over the course of our history.

Bridgestone 1.0

Bridgestone 2.0

Foundation

Second Foundation

1931

1968–

1988–

Our founding

Receiving the Deming Application Prizeand defining the company mission:“Serving Society with Superior Quality”

Taking on the challenge of a global
Bridgestone

In the early part of the 20 th century, tire manufacturers

We set our sights on expanding overseas soon after ourin Europe and the United States were thriving alongside

founding and chose Bridgestone as the company nameadvancements in the automotive industry, while Japanand trademark the founder’s surname translated andReceiving the Deming Application Prize

Merger with Firestone Tire & Rubber Company,
the second largest U.S. tire manufacturer

relied on U.K. and U.S. technology and capital. Founderreversed (Ishibashi, which means “stone bridge” in English)

In the 1960s, Bridgestone promoted the modernization of

Aiming to make full-scale business entry in the North

Shojiro Ishibashi believed in the future of motorized

for better product image and marketability overseas.

management and quality management activities, which we

American market, Bridgestone acquired Firestone Tire &transportation in Japan and took on the challenge ofBridgestone began to expand its business from Kurumeuniquely named the “Deming Plan” in 1964. Based on the

Rubber Company, the second largest U.S. tire manufacturer

producing tires domestically using Japanese capital andCity to the rest of Japan and began exports to Asia thebasic thought that “good company quality makes goodat the time. The acquisition cost around 2.6 billion USD

technology. After overcoming many technical challenges,

following year after founding. We have since continued

quality of products and services”, we started company-wide(approx. 330 billion JPY), making this the largest overseas

the very first Bridgestone tire was produced in 1930, andsupporting motorization and mobility with safety andefforts to improve our corporate structure. In 1968,

acquisition by a Japanese company at the time. This merger

on March 1, 1931, Bridgestone Tire Co., Ltd. was founded inpeace of mind in Japan and Asia, and the Asian region has

Bridgestone received the Deming Application Prize, which ismade Bridgestone one of the top three manufacturers inKurume City, Fukuoka Prefecture—eventually leading tobecome our second home market. Bridgestone DNA, which

awarded to companies demonstrating distinguished quality

the global tire market and launched the journey toward

the Bridgestone of today.

includes taking on difficulties with a “challenging spirit”,

control, for the first time in the tire industry.

globalization. Bridgestone continued to evolve into a“focus on quality”, and “being attentive and supportive ofglobal company overcoming many challenges, such as thecustomer problems” with “respect for being on-side”, hasfusion of two distinct corporate cultures.

been inherited to the current Bridgestone from this periodof founding.

The Deming Application Prize medal

Receiving the Deming Application
Prize (1968)

Company mission:“Serving Society with Superior Quality”
In the same year we won the Deming Application Prize,
Bridgestone established “Serving Society with Superior
Quality” as its company mission. This mission reflects
the founder’s business philosophy that “A business that
contributes to its society and country will be forever
profitable”, and lives on today as its unchanged mission.
Bridgestone’s DNA, “focus on quality”, has been cultivatedthrough such activities to improve management quality.

Bridgestone acquired the Firestone Tire & Rubber Company in 1988

1997
Participation in F1®, the pinnacle of motorsports
Bridgestone started its motorsports activities from the firstJapanese Grand Prix in 1963. We expanded our motorsports
activities globally and began participating in F1® racing in
1997, one of the world’s top races. Just one year later, in
1998, a team won the F1® championship using Bridgestonetires. The Firestone brand (as part of Bridgestone) returnedto the INDYCAR® SERIES in the United States in 1995 andBridgestone also began participating in MotoGP™ in
2002, the world’s top motorcycle race. This “challenge forexcellence” has enabled Bridgestone to be recognized as a
global premium brand and serves as the foundation of our
premium tire business today.

Birth of Bridgestone’s first tire
Formula 1®

Company mission defined (1968)

MotoGP™

1998 Round 16 Suzuka

2015 Round 18 Valencia

Formula 1® 1997-2010
8

MotoGP™ 2002-2015

Bridgestone 3.0 Journey 2024 Integrated Report9

“Serving Society with Superior Quality”—Our Mission and the Bridgestone DNA

Bridgestone 3.0
Third Foundation

2000-

2020-

Bridgestone announced the “Bridgestone E8 Commitment”

Start of the solutions business for
future growth toward Bridgestone 3.0

Bridgestone 3.0: Toward becoming asustainable solutions company

as the axis to drive management while earning the trust

The 2030 Long Term Strategic Aspiration
announced in August 2022

of future generations. The Bridgestone E8 Commitment

Bridgestone announced the 2030 Long Term Strategic

embodies Bridgestone’s vision and reflects our mission,

Aspiration described as a vision of what we want to

the fundamental principle of “tires carry life”, andBridgestone expanded into the solutions businessdomain to amplify the value of its Dan-Totsu (the clear

Bridgestone positioned 2020 as the first year of theBridgestone DNA. We will commit to create 8 Bridgestone-

and absolute leader) products from the “produce and“third foundation” or Bridgestone 3.0 and announced thelike values starting with the letter “E” through thesell” phase to the customer’s “use” of tires, with a focus

Mid-Long Term Business Strategy Framework, placing

Bridgestone-like purpose and process together withsustainability at the core of management and business.

employees, society, partners, and customers to realize a

We identified our vision of “Toward 2050, Bridgestonesustainable society.

supportive of customer problems.”

when the business environment is constantly changing
and change is becoming commonplace. We positioned thisas a roadmap and North Star toward our 100th anniversary
in 2031 and are accelerating our transformation into a
resilient “excellent” Bridgestone that transforms change

continues to provide social value and customer value

into opportunity, unperturbed by continuous change while

as a sustainable solutions company”. As a sustainableglobal retread business that maximizes productivity andof transforming into a company that continues to growsustainably, provide value, and support the realization ofa sustainable society. Bridgestone is moving forward withthis Bridgestone 3.0 Journey.
2030
Long
Strategic
2030
Long
Term Term
Strategic
Aspiration:Aspiration:
Strategic Map Strategic Map

economic value for customers and makes a strong
contribution to sustainability. This merger built thefoundation for the future growth of the solutions business,and retreading is now being developed as a core part of thesolutions business.
* Retreading is the process of replacing the worn tread on old tires received
from customers, and then delivering tires that are ready to be used again.

Bridgestone 3.0 Journey

Mission: Serving Society with Superior Quality

VisionVision: 2050 Bridgestone continues to provide social value and customer value as a sustainable solutions company
Solutions for your journey

provide social value and customer value as a
Solutions for social systems

sustainable solutions company.

“Support” society/mobility systems“Support” vehicle operation systems

Mobility Solutions

Growthbusiness

Towa
rd
“C
a

Retail & Service Solutions

new value by combining Bridgestone’s expertise in tires
with mobility data and tire data.

vehiclesellSsolutions using digital technologies. The aim is to provide“Support”e&With this merger, Bridgestone started the expansion of fleet

To accelerate our transformation, on March 1, 2022,

Premium Tires

Core
business

Re

Amplify
data value

Interaction
with empathy
to co-creation

Share data
among partners

Unique “Real x Digital” platformnEnhancing value chainof Dan-Totsu products

Diversiﬁed Products/
Exploratory

Real x Digitalin celebration of the 91st anniversary of our founding,

Amplify trust

trality ＆ Ci
neu
rcu
on
lar
Use
rb

Produc2019
Merger with Webfleet Solutions (formerly
TomTom Telematics), a leading digital fleet
solutions provider in Europe

Retail & Service Solutions Network

platform

Amplify valueof Dan-Totsu
products

”
omy
on
ec

Tire-centric Solutions

2022
Establishment of its corporate commitment,
the “Bridgestone E8 Commitment”

Cloud

Bridgestone E8 Commitment

Toward 2050, Bridgestone continues to(R eBridgestone acquired Bandag, a U.S. company, to grow theremaining robust and flexible like rubber.

solutions company, Bridgestone takes on the challenge

ew

2007
Merger with Bandag, a leading tire retread*companyc ycle)on “respect for being on-site” and “being attentive andachieve in 2030, to survive these unpredictable times

Trust with society /partners / customers

Based on tire data

(Win-Win-Win)

Tires and solutions “carry life”
New core competencies
Bridgestone DNA
Fundamentals

New global footprint

Ultimate customization

Focus on quality
Sustainability

Compliance, Human rights

New brand power

DE＆I

GovernanceTechnology & Innovation
Being attentive and supportiveof customer problems

Respect for being on-site

BCP, Risk management

New & true glocal portfolio management
Challenging spirit

Enhance talent creativity

Create new DNA

Peace of mind, Safety

2024
Mid Term Business Plan (2024–2026)—24MBP announcement
Bridgestone formulated the 24MBP based on the 2030 Long Term Strategic Aspiration as our roadmap and North Star, taking
into account changes in the business environment as well as remaining issues from 21MBP – the Mid Term Business Plan (20212023) and newly exposed issues. We will further focus on value creation, having “Passion for Excellence” as our management
approach, which expresses the passion to pursue improvement of management and working & business quality.

10

Bridgestone 3.0 Journey 2024 Integrated Report11Global CEO Commitment

Bridgestone commits to building a foundation forsustainable value creation and supporting therealization of a sustainable society in a
Bridgestone way.
Unchanging Mission“Serving Society with Superior Quality”

support the realization of a sustainable society and create
corporate value as well. Setting forth our vision of “Toward
2050, Bridgestone continues to provide social value andBridgestone was founded in Kurume City, Fukuoka

customer value as a sustainable solutions company”, we are

Prefecture in 1931, and has expanded its business fromnow taking on the challenge to realize it.

Japan to Asia, supporting motorization in each region from

Celebrating the 91st anniversary of our founding on March

the ground up. In 1988, Bridgestone merged with Firestone,

1, 2022, we established the “Bridgestone E8 Commitment

which was the second largest U.S. tire manufacturer at the(E8)”, the corporate commitment to accelerate ourtime. With this acquisition as our “second foundation”, wetransformation. The E8, which consists of 8 Bridgestone-liketook on the challenge of expanding our business to Northvalues starting with the letter “E” that embody our vision,

America and Europe, ultimately leading to the evolution

is our determination and declaration that we will support

into a global company. Positioning 2020 as our “third

the realization of a sustainable society by creating suchfoundation”, we are now driving new transformation tovalues together with employees, society, our partners andrealize our vision of becoming a “sustainable solutions

customers. Also, we created the E8 with our belief that thecompany”. Bridgestone’s initiatives and activities, which

Earth has been entrusted in our care by future generations

have “supported the mobility of people and goods”

of children. Focusing on being Bridgestone-like, we haveensuring safety and peace of mind for more than 90 years

defined 8 “E”s to firmly reflect our mission and vision, as

since our foundation, have always been rooted in ourwell as to encapsulate our future value creation.

mission of “Serving Society with Superior Quality”.

Since the announcement of the E8, various activities

Bridgestone’s mission has been developed andcentered on the E8 have been promoted globally, andexpanded with our growth. The “quality” was originallyco-creation activities with partners and customers who

used to mean the quality of products at the time of ourhave empathy for the E8 have also been progressing. In

founding, but now it has come to encompass the quality oforder to create value sustainably, we believe it is essential

services, working & business, and management. Also, theto gain empathy from our stakeholders through deepening“society” that we support motorization had expanded

dialogue and develop the empathy into “value co-creation”.

from Japan and Asia in the period of our foundation to

We will continue to drive various initiatives based on the E8

global through our “second foundation”. In our “third

as the axis for such value creation further.

foundation”, it has been expanding to a sustainable
society. As corporate responsibilities and roles diversify inthe management of today and the future, our mission is
becoming more important than ever. We must carry on
Bridgestone’s unchanging mission of “Serving Society with
Superior Quality” throughout the entire global group.

“Third Foundation” – Toward a Sustainable
Solutions Company

Shuichi Ishibashi
Member of the Board
Global CEO and
Representative Executive Officer
Bridgestone Corporation

Under this mission, positioning 2020 as our “thirdfoundation” and placing sustainability as the core, we havebegun our transformation into a company that continues to

12

Bridgestone 3.0 Journey 2024 Integrated Report13Global CEO Commitment

Fundamental to the Strategy for Sustainable
Value Creation – Amplify Value with “Dan-Totsu
Products” at the Core

Take on the Challenge of Value Circulation –From “Produce and Sell” and “Use” to “Renew
Tires”For Bridgestone to accelerate its transformation,

Furthermore, as a sustainable solutions company,

linkage with the solutions business. As a pillar of execution,

We recognize that in the approximately one and a half years

fundamental to the strategy for sustainable value creation

Bridgestone is driving initiatives for the circulation of value

we will firstly amplify value of Dan-Totsu products,

between the announcement of the 2030 Long Term

is to “amplify value” with Dan-Totsu products at the core.

from “produce and sell” and “use” tires to “renew” tires. In

secondly amplify the trust with our customers rooted in

Strategic Aspiration in August 2022 and the 24MBP

In particular, we believe that the following three points are

addition to the premium tire business to “produce and sell”

the Dan-Totsu products. And finally based on the trust ofannouncement in March 2024, changes in the businessat the core of our strategy.

as our core business, and the solutions business (growth

our customers that we have built, our customers will

environment have generally become even more intense

business) to amplify value during customer “use” phase ofprovide their tire and mobility data, and we will amplify

and commonplace.

• Transform into a new R&D, manufacturing and value

tires, we position the recycle business to “renew” tires tothe data value to create new value for customer success.

We carefully identified changes in four key factors thatcreating company that leverages strengths as a Japan

raw material as the exploratory business, aiming toThrough this value amplification, we aim to continue toare directly related to our business: geopolitics, mobility &based company

establish a circular business model.

Assess Changes in the Business Environment
and Risks, then Transform Changes into
Opportunity with a Calm and Rational Approach

To realize value amplification centered on Dan-Totsu
products, which is fundamental to our strategy, we will
aim to amplify the value of each business by placing thepremium tire business at the core and deepening its

support vehicles and vehicle operation systems while

technology, sustainability, and tire industry structure.

• Build competitive advantage through expansion ofgaining a competitive advantage, placing contribution to

Regarding geopolitics, various changes are continuingsolutions business to solve customers’ pain points ⇒sustainability such as carbon neutrality and a circularglobally, and it is necessary to strengthen our response to

economy at the core.

supply chains, such as global procurement including energy

Take on challenges to circulate value sustainably

Lead to customer success through the enhancement

Solutions busi
nes
Use
s

of customer value and customer experience value

u sin e s

Exploratory
business

le b

Core
businesssInnovation“Produce & sell”

Growth business“Use”

Exploratory business“Renew”

mi

Re

Pre

and digital

Co-creationcyc

manufacturing and craftsperson skills based in Japan,u c e & s e llreal, including on-site capabilities of R&D andCore business

Growth business

Prod• Support these initiatives by the fusion of our strong

eb

us

ne

w

um

tir

in e

ss

and raw materials and logistics. For mobility, the EV

This aspiration was incorporated into a concrete action

Re

In order to realize these, we will expand the solutions
business to amplify value in the tire “use” phase, whileplan for 3 years as our Mid Term Business Plan (2024-2026)

adoption speed is softening at the moment, but we see the(24MBP), based on the achievements and remaining

mid-long term adoption and expansion trend will remainchallenges of the transformation after 2020. We assessedunchanged. We expect that mobility will continue tothe changes in the business environment after our

diversify and the desired performance for tires will alsoannouncement of the 2030 Long Term Strategic Aspiration

become more diverse in the future. In respond to this, wewith a calm and rational approach and announced the plan

will pursue “ultimate customization” backed by our DNA ofon March 1, 2024, the 93rd anniversary of our founding.

“being attentive and supportive of customer problems”.

strengthening the premium tire business, which is our corebusiness, of “producing and selling” tires. Also, we believethat Bridgestone DNA – “focus on quality”, “respect forbeing on-site”, “being attentive and supportive ofcustomer problems”, and championing a “challenging

Regarding the response to the technology that is advancing

Moving Forward to Continue to Support the”Mobility of People and Goods” that Exists
Unchanged in Any Era with the “2030 Long
Term Strategic Aspiration” as Our North Star

every day, such as the drastic improvement in generativeAI, we know that we are a little behind, but we will maximize

spirit” – lives in our roots, hence this business strategy canLong Term Strategic Aspiration” in August 2022. This serves

value creation.

as a roadmap toward the 100th anniversary of our founding

Mission: Serving Society with Superior Quality

Vision: 2050 Bridgestone continues to provide social value and customer value as a sustainable solutions company
Solutions for your journeyin 2031 under our mission, vision and commitment.

Fundamental to the strategy

Amplify value

Solutions businessfor sustainable value creation
Amplify value with Dan-Totsu products at the core
― from “Produce and sell” to “Use” ―Premium tire businessremaining robust and flexible like rubber”. Since 2020, we
have been experiencing a turbulent business environment
geopolitical risks, evolution of mobility, technology

Retail & Service Solutions Network

Challenging spirit

circumstances, we were able to once again reaffirm ourbecoming commonplace”. We are driving “unwavering
management” globally based on the roadmap that weoutlined where we want to be to survive this era andvehicles

el

l

Re

Amplify valueof Dan-Totsu
products

Amplify trust

Amplify
data value

Interaction
with empathy
to co-creation

Share data
among partners

Unique “Real x Digital” platformnEnhancing value chainof Dan-Totsu products

Diversiﬁed Products/
Exploratory

Real x Digitalstrong determination to continue to support the “mobility ofpeople and goods” even in an era where “change is“Support”

S

Focus on quality

Premium Tires

Core
businessplatform

trality ＆ Ci
neu
rcu
on
lar
Use
rb

e&

Bridgestone DNA

Tire-centric Solutions
Retail & Service Solutions

innovation, diversified initiatives for sustainability, andBeing attentive and supportiveof customer problems

Mobility Solutions

Growthbusiness“Support” society/mobility systems“Support” vehicle operation systems

with various changes occurring successively such as

the structural changes in the tire industry. Under such
Respect for being
on-siteSolutions for social systems

opportunity, unperturbed by continuous change while

Produc“Produce & sell”

Enhance business quality globally

excellent Bridgestone that transforms change into

”
omy
on
ec

(horizontal x vertical)

“Use”

Cloud

Bridgestone E8 Commitment

What we aim for in this Aspiration is to become a “resilientc ycle)throughout our history since our founding, as the origin of

2030
Long
Strategic
2030
Long
Term Term
Strategic
Aspiration:Aspiration:
Strategic Map Strategic Map(R e

North Star for transformation, we announced the “2030ew

In order to embody these strategies and set them as ourcontinue to value our DNA, which has been spread globally

Towa
rd
“C
a

be embodied as a unique value creation story. We will

Trust with society /partners / customers

Based on tire data

(Win-Win-Win)

Tires and solutions “carry life”
New core competencies
Bridgestone DNA
Fundamentals

New global footprint

Ultimate customization

Focus on quality
Sustainability

Compliance, Human rights

New brand power

Respect for being on-site
DE＆I

GovernanceTechnology & Innovation
Being attentive and supportiveof customer problems

BCP, Risk management

New & true glocal portfolio management
Challenging spirit

Enhance talent creativity

Create new DNA

Peace of mind, Safetycontinue to support the mobility of people and goods andempower them.

14

Bridgestone 3.0 Journey 2024 Integrated Report15

Global CEO Commitment

24 MBP: New & True Glocal Portfolio
Management Scenario Development

the use of AI as an opportunity to increase our productivity,

business model in terms of profitability. Also, the expansion

global management indicators of the 24MBP were set in

to shift to a smart factory, and create new businesses linkedof solutions in Europe and Asia where profitability is anterms of both financial indicators and social value andto the solutions business. With regard to sustainability,

issue has been limited to certain areas and customers.

non-financial indicators. For financial indicators, we plan towhich is at the core of our management, the realization ofThrough these experiences, we were able to determine

achieve 10% ROIC, our most important management

Since 2020, Bridgestone has been promoting glocal

carbon neutrality and a circular economy, as well as“what to do” and “what not to do” in the solutions businessindicator, in 2026 which is the final year of the 24MBP,

management to establish global strategy, and to cascade it

initiatives for nature positivity will become even morefrom the perspective of profitability and growth potential

through continuous improvement of business quality andto local for execution by developing local strategies inimportant, and in addition, it will be necessary to respondand clarify the areas to be focused in the 24MBP.

reinforcement of earning power being conscious of capital

accordance with the characteristics of each region and area,

cost. Shareholder returns have also been continuously

such as mobility maturity and industry structure. Also, theto TRWP (Tire & Road Wear Particles) and 6PPD (an antioxidant

However, significant challenges remained in financial

and antiozonant commonly used in the tire industry). To

performance of the 21MBP, which shows “execution andimproved, projecting a minimum dividend per share of 250

total optimization across value chain has been ensured inaddress these, we will promote industry-wide initiatives asdelivering results”. In 2023, the final year of the 21MBP,JPY level in 2026. In enhancing social value, we aim tothis glocal management. In the 24MBP, to make sure ouran industry leader, while strengthening our own initiatives

with demand declining significantly in North America andreduce CO2 emissions by more than 50% compared to 2011

path to achieve our global management indicators, we havesuch as promoting to reduce TRWP throughout the entire

Europe, especially for TB (truck and bus) replacement tires,and increase the recycled & renewable material ratio to

evolved this glocal management into new & true glocal

value chain to “produce and sell” and “use” tires. As theour challenges exposed including signal monitoring,

more than 39%, while expanding production and sales

portfolio management which aims to maximize efficiency

structural changes in the tire industry continue, we consider

inaccurate demand and sales forecasting and delays involume. This will be the phase to build a sustainable

and effectiveness and established it as a managementthat evolving into a “Bridgestone capable of adapting to

responding to them, and lack of sensitivity to thestructure and foundation for value creation linked with our

structure to “focus on execution and delivering results”.

change” and reinforcing earning power will be essential for

deterioration in the business environment such as thebusiness strategy. In addition, starting from the 24MBP,

Based on the four business portfolios of the premium tiresustainable enhancement of corporate value.

Argentine currency devaluation happened in December 2023.

talent creativity has officially become a managementbusiness (core business), the solutions business (growth

As a result, ROIC (Return on Invested Capital), the mostindicator, aiming for “reinforcing talent investment,

business), the exploratory business, and the diversified

environment with a calm and rational approach and increasing

important management indicators, landed at 8.7% in 2023,

increasing added value and creating a virtuous cycle ofproducts business, we divided our global regions into 47

our sensitivity to change and risk, we can transform change

below the target of 10% set in the 21MBP.

value creation”. With regard to building a sustainable

areas according to regional and business characteristics.

premium brand, we will initiate a new corporate branding

Each area is set as a business management unit that focuseswith sustainable global motorsports at the core.

on value creation based on Genbutsu-Genba (respect for

We believe that by assessing changes in the business

into opportunity. Although there are still many challenges

As we have not yet returned to a “strong Bridgestone

regarding sensitivity, we have established a new & true

capable of adapting to change”, looking ahead, it is urgent

glocal portfolio management structure in the 24MBP to

to improve management and business & working quality

being on-site). By doing so, we crystallize issues andincrease sensitivity among our entire global management

such as monitoring signals, sensitivity to agilely respond tostrengthen signal monitoring, while carefully following up

team as an essential element for sustainable value creation.

change, quality and speed in applying the PDCA (Plan-Do-

on the “execution and delivering results” of each area.

Check-Act) cycle.

Achievements and Remaining Issuesof the Transformation
Summary of the 21 MBP – Mid Term Business
Plan (2021 -2023 )24 MBP: “Further Focus on Value Creation”
In the 24MBP built based on the above, the management
stance has evolved from “crisis management” in the 21MBP
when we faced unprecedented crises such as COVID-19, totransformation since our “third foundation” in 2020, we set“Passion for Excellence (having a passion to constantly

three axes in our management – “Tackle past negative

pursue a high quality of management and working &legacies without delay”, “Focus on execution and deliveringbusiness)”. We have not changed the three axes of ourresults for immediate issues”, and “Lay foundation for future

management: “Tackle past negative legacies without

growth” – and aimed to “return to a ‘strong’ Bridgestone

delay”, “Focus on execution and delivering results forcapable of adapting to change.” In the premium tire business,

immediate issues”, and “Lay foundation for future growth”.

we have completed laying the foundation for premium

In 2024, a starting point of the 24MBP, we must first haveenhancement, including investment to reinforce production,

confidence and clear direction on solving the remaining

toward the growth in the 24MBP. In the solutions business,issues of the 21MBP and new issues exposed in 2023 andour growth business, we took on the challenge to lay thesteadily execute initiatives to “return to a strong“foundation for evolution linked with the premium

Bridgestone”. On that basis, we will build a foundation toenhancement” and could made partial achievement.

move to the “true next stage” in 2025 and 2026 and theStrengthen new & true glocal portfolio management(by global, business, and area)“sustainable growth stage” in the 27MBP, the next Mid Term

Reinforce earning power

We executed this including enhancement of profitability
in the commercial BtoB solutions (truck & bus and mining &We clarified 4 key initiatives of the 24MBP: reinforcing“being attentive and supportive of customer problems” of

new & true glocal portfolio management, which is our new

Bridgestone DNA lives on and where the value of Dan-Totsu

management structure, reinforcing earning power, further

products can be amplified during customers’ tire use.

focusing on value creation in line with the business shaping

However, we discontinued the consumer solutions in North

scenario and start to build a sustainable premium brand.

”Passion for Excellence”

90th anniversary of founding
2021

2023
Return to a strong Bridgestone
capable of adapting to change

2030 Long Term Strategic Aspiration

24MBP

21MBP

Business Plan for the three years from 2027 to 2029.

aviation solutions) where “respect for being on-site” andAmerica and Europe because we could not establish

16● Positioning of the 24 MBP with the 2030 Long Term Strategic Aspiration as Its Roadmap

In the 21MBP that we positioned as the first stage of the

27MBP

95th anniversary of founding
2024

2025

Remaining issues& new issues

100th anniversary of founding

2026

2031
Become a resilient“excellent”
Bridgestone

True next stage

Business shaping scenario – Further focus on value creation
Start building sustainable premium brand

Tackle past negative legacies
squarely without delay

Focus on execution and delivering resultsfor immediate issues

Lay foundation for future growth

Under the vision of a sustainable solutions company, theBridgestone 3.0 Journey 2024 Integrated Report17

Global CEO Commitment

24 MBP: Management Being Conscious ofCapital Cost – Promote “Reinforcement ofEarning Power” Utilizing ROIC

areas. We will further focus on value creation according to

we held Global EXCO, Bridgestone’s global executives

slowdown of demand growth for HRD tires after 2030 or

the four scenarios: “Create good business quality”, “create

committee, in Kurume City, Fukuoka Prefecture, which ispossibly a little earlier, as assumed in the “2030 Long Termgood tires”, “create good business”, and “create new

the birthplace of Bridgestone, in March 2024. Following in

Strategic Aspiration”, we are striving to create value withbusiness sowing good seeds for the future”.

the footsteps of the founder, all members of the global

ENLITEN, base technology for product design that we aremanagement team reaffirmed Bridgestone DNA based on

positioning as “new premium” and the core of our premium

Genbutsu-Genba (respect for being on-site). Also, we hadtire business. We are reinforcing earning power by pursuing

workshops on our Deming Plan, discussed specific“ultimate customization” by ENLITEN, which sharpens edge inmanagement issues with PDCA and why why why analysis,

the performance that provides new value in accordance with

as well as visited manufacturing site to see and learn on-site

diverse vehicles and usage condition, while realizing businessIn “reinforcement of earning power”, we have positioned“Create Good Business Quality”
Top Priority Issue: Improvement ofManagement and Working & Business Quality

ROIC (Return On Invested Capital), which evaluates earning
power, as the most important management indicator. And
we are strengthening management being conscious of
capital cost, with ROIC at the core. Since 2020, we havebegun Bridgestone-like ROIC improvement activities by

In order to “create good business quality”, we strengthen

improvement activities based on Genbutsu-Genba (respect

cost reduction by BCMA, base technology for R&D andincorporating the components of ROIC into on-site activities

the foundation for value creation through the improvement

for being on-site). Sharing the “Deming Plan” booklet to all

manufacturing which simplifies development and production.

based on Genbutsu-Genba (respect for being on-site). We

of management and business & working quality, which is

employees at all levels of the entire global group, weIntroduction of BCMA is also an initiative to pursue our essence

have expanded the ROIC target to each of 47 areas in line

our top priority.

conduct workshop-based training programs and connectof R&D and manufacturing, and thereby to improve our R&D

them to execution.

and manufacturing power, which is one of Bridgestone’s

with the new & true glocal portfolio management structure

We have begun by re-enhancing understanding of “focus

and are aiming to reinforce earning power in each area. At

on quality” of Bridgestone DNA and our mission of “Serving

Also, as an activity to “create good business quality”, wethe same time, we will support the foundation forSociety with Superior Quality”, which reflects the DNA. In

are promoting initiatives for talent creativity enhancement, assustainable value creation by managing our business

addition, returning to origins, we are reaffirming andwell as working on productivity improvement to realize

portfolio based on the basic principle of ensuring more thanre-enhancing understanding of “Bridgestone’s uniquecontinuous talent investment. In addition, to support the

10% of ROIC globally and no business with Bridgestone’s

Deming Plan”, a quality improvement initiative that we have

improvement of creativity and productivity, we will evolve

assumed WACC below 5.5% and ROIC below 5.5%, excluding

promoted since the 1960s, for each functions and job layer

Bridgestone’s DX across the value chain, from R&D andthe exploratory business.

and all employees in global. In order to modernize

manufacturing to the solutions business.

In addition, based on the remaining issues from thein R&D and manufacturing through BCMA.

“Create Good Business” Amplify Value acrossthe Value Chain
To “create good business”, we are promoting efforts tomanagement, in the 1960s, Bridgestone analyzed Dr.

reduce business cost across the value chain and “reinforce“Create Good Tires”
Value Creation by the Fusion of“New Premium” ENLITEN and BCMA

21MBP, we also strengthen inventory management by

Deming’s method, who claimed that “quality is a matter of

responding agilely to fluctuations in demand and sales,

overall management and is deeply related to management

improve the cash conversion cycle, and improve the fixedphilosophy” and established the “Bridgestone’s uniqueasset turnover ratio. Furthermore, we recognize that ROE

Deming Plan” as an initiative to improve management(Retune on Equity) is also our important management

quality. The basic thought of our Deming Plan is “GoodTo “create good tires”, we are further strengthening our focus

and global SCM logistics transformation. Furthermore, inindicator, and keep aiming to improve our capital efficiency

company quality makes good quality of products andon premium segment under the theme of “from volume toorder to amplify value of Dan-Totsu products duringwith our ROE target of 11% in 2026.

services”. Based on this, we create good business quality byvalue”. As the core of this, we are working to firmly capture

customers use of tires, we strengthen the retail channel by

ensuring that each and every employee thoroughly practices

the tailwind in high rim diameter (HRD) for passenger tires,the optimal combination of our family channel and strategic

the five concepts – “PDCA”, “why why why analysis”,

where the demand continues to grow due to the shift topartners mainly in the U.S. and Japan. We continue to take“standardization”, “explain by using accurate data”, andhigh rim vehicles. Also, at the same time, preparing for aon the challenge which leads to the improvement of

24 MBP: Business Shaping Scenario
Based on the new & true glocal portfolio management, we“control important points” – as basic behavior when working

developed the “business shaping scenario”, linking it toat Bridgestone.

specific initiatives in each of our business portfolios andGreen & Smart linked with BCMA, and steady on-site
productivity improvement, in addition, global procurement

Enhance value
Creation of
corporate value

Ultimatecustomization
Differentiation

Reinforcement of
earning power

UP“New premium”

Base technology for
product design“New premium”

Create New Business
Sowing Good Seeds for the Future

Mobility tech Business"Strategic business"

Exploratory Business:
Sowing New Seeds

Gen 1

Elevate all conventional performances, and largely
evolve environmental performance and/or performancethat not only meet the needs & wants of specific market/
customers but further inspires them (= “sharpen edge”)

Expand performance
spider chart“sharpen edge”

FusionDOWNCreate corporate value through balancing social value andcustomer value creation and gaining competitive advantage

Gen 2

Improve product power—Generate customer delight

Value creation(social &customer value)

Create Good Business

reduction in development and production by BCMA, shift to

Accelerate value creation through the fusion of ENLITEN and BCMA

Create Good Business Quality “Passion for Excellence”(Management, Working & business quality improvement)
Create Good Tires

earning power”. The initiatives toward it are the cost

In order to strengthen activities from top management,

24MBP Business Shaping Scenario: Further Focus on Value Creation

18

strengths. We are also driving to reduce environmental impact

Base technology
for manufacturing
and R&D

Customization

Module 3

Customize performance
per market/customer

FusionGainingcompetitive
advantage

Simplification

Reduce businesscost &
environmental
impactReduce cost
Simplify operations in R&D and production /Support “ultimate customization”

Simplification

Module 2

Improve efficiency fordevelopment and supply
chain, and reduce costby sharing modules
between products

Module 1

Bridgestone 3.0 Journey 2024 Integrated Report19Global CEO Commitment

customer experience value and customer success throughContinue to provide social value and customer value

connecting directly with our customers and offering the
optimal proposal and high-quality service that can solve
their pain points by our real and digital capabilities.

“Create Good Business” Build a Sustainable
Premium Brand
In addition, we will enhance our value creation throughbuilding a “sustainable premium” brand with Bridgestone

Achieve sustainability targets

Production &Logistics

Use“Excellence”
Sustainableglobalmotorsports

Sustainability target in 24MBP: ” Produce and sell” “Use” “Renew”

CO2 emission reduction (Scope1,2)2026

TargetRecycle50%

core. With such activities, we will foster trust and empathy

Raw material &Procurement

low rolling resistance, solutions, etc (2026)

Recycled & renewablematerial ratio

2026

Target39% above: ”Produce and sell”

Solutions business Growth business : “Use”

Foundationfor value creation
toward sustainablegrowth stage

Create Good Business
Exploratory business: “Renew”

Nature positive:

Reinforce support for smallholders of natural rubber“Create New Business Sowing Good Seeds for
the Future” Build the Solutions Business andthe Mobility Tech Businessby demonstrating our new “challenge and pursuit of

Focus on “initiatives for sustainable use of natural rubber &water resources” which are directly related to our businessInitiatives for reinforcing structure to cope with global management
risk and reducing future risk2026
% of suppliers setting SBT-equivalent CO2 reduction target (Scope3)
Target%* Science Based Target

excellence” and build our new brand power. In marking the

Toward sustainable value creation, we are focusing on

60th anniversary of our motorsports activities in 2023, we

creating new business that creates social and customer

reaffirmed our passion for motorsports and werevalue, sowing good seeds looking ahead of the 24MBP.

determined to evolve these activities placing sustainability

Core business

Strengthen the circular business model

to become a brand that continues to empower each and all
mobility. Sustainable global motorsports activities are at its

Contribution to CO2 reduction (Scope3)

Contributes to reduce CO2 emissions by more than

Reduce more 3 times our own CO2 emissions through light weight,
than (vs. 2011)
Circular economy:and ENLITEN. What we aim for as “sustainable premium” isto achieve their “best” and be essential to the future ofPremium tire business

Create Good Tire

Carbon neutrality:

Further focus on improvement of “quality” including scope3 emissions

Development

Sustainable Value Creation linked withbusiness shaping scenario

Risk monitoring related to human rights and continuous improvement

92

Create New Business,
Sowing Good Seeds
Create Good
Business Quality

Lay foundation
for the future
growthNew & trueglocal portfolio
management(CO2 basis)to expand our value creation from local communities to

We believe that being selected one of 15 companies as SX

In the solutions business, focusing on commercial BtoB

space—on Moon’s surface. For raw materials, we continue

brands under the first round was primarily based on ourat the core. In December 2023, we announced our new

solutions, we continue to take on the challenge to create

our research on guayule which aims to expand renewableconsistent corporate transformation, including

message “Passion to Turn the World” which portrays ourvalue that enables customers to use our premium tire safer,

resources and diversify natural rubber resources. Also we are

Bridgestone’s mission and vision, E8 commitment, etc.,

passion and determination.

longer, better, and more efficiently by amplifying value

promoting the realization of recycling which “renews” tires

and initiatives to build a foundation for sustainable value

during customers “use”. This growth is driven by the mining

to raw material. In the soft-robotics business, our new

creation with sustainability at our core. We continue toand aviation solutions business. In the mining and aviation

challenge leveraging Bridgestone’s core competencies, we

engage in value dialogue with our stakeholders and linksolutions business, we take on the challenge to strengthen

are driving small-scale commercialization linking withinteraction with empathy and co-creation for sustainabletire wear prediction and evolve it to durability prediction

initiatives for talent creativity enhancement such as

value creation.

solutions. This will be built on our strong real such as Dan-

introduction of corporate venture system, etc.

Totsu products, on-site field engineering services andevolved by building our unique algorithms utilizing AI withtire and mobility data shared by our customers based on our

Build Foundation for Sustainable Value
Creationtrust with them. Also we will drive such initiatives for truck

Strengthen Sustainable Global Motorsports
Activity – a Mobile Laboratory

and bus solutions in North America as well. We will amplify

By integrating and linking activities that contribute to

the value of Dan-Totsu products in these 3 commercial BtoB

sustainability such as carbon neutrality, a circular economy

solutions, establish it as a mobility tech business whichand nature positivity, with the business shaping scenario

creates both social and customer value with our real andexplained above, we will build a foundation for sustainabledigital capabilities, and make it our “strategic business”.

value creation and strengthen sustainable structure in the
global group.

“Create New Business Sowing Good Seeds for
the Future” the Exploratory Business

Foster Trust toward Sustainable Value Creation“challenge for excellence” under the concept of “FromIn the exploratory business positioned as sowing new seeds

We aim to foster trust toward sustainable value creation by

Circuit to Street” for the development of tires for the

toward sustainable growth in the future, we have begun

communicating with our stakeholders about the progress,

markets. In December 2023, Bridgestone was selected asby providing social value based on co-creation withachievement and challenges of the transformation and thesole future tire supplier for the ABB FIA Formula E World

sustainability at the core. Regarding tires, we are promoting

overall picture of the 24MBP, and by strengthening dialogue

Championship from the 2026-2027 season. Leveraging this,technology development and demonstration of “AirFree”—

with our stakeholders. As one of the results, we were

we would like to evolve our ENLITEN technology, accelerate

a next generation tire that doesn’t need air-filling.

selected as one of the SX (Sustainability Transformation)

With sustainable global motorsports activity as a “mobilelaboratory”, we will leverage technologies refined throughsustainability of the entire value chain with motorsports
tires as the starting point and spread it to the entire group.

We are promoting development of “AirFree” that empowers

Brands 2024 in Japan, which was newly established thisthe mobility of local communities looking ahead to linkage

year to select progressive companies that are promotingwith autonomous driving, and furthermore “AirFree” that

long-term and sustainable creation of corporate value by

supports space exploration which carries the dreams ofengaging in dialogue with investors and other parties,

mankind by protecting safety and peace of mind in theincorporating society’s sustainability issues and needs into

extreme environment of the Moon’s surface. We are aiming

their own growth, and making necessary management andInvitation for Co-creation to Build a Foundationfor Sustainable Value Creation
In our 2024 Integrated Report, we share with our stakeholders
our thoughts and progress on the initiatives in action as wetransform into a sustainable solutions company, based on
the 24MBP story line as communicated in this CEO
commitment. By clearly presenting the roadmap for ourtransformation to you, we hope you will join us on ourjourney toward the realization of a sustainable society.
Bridgestone will continue to take on the challenge to build afoundation for sustainable value creation relentlessly by
pursuing “Passion for Excellence” and focusing on execution
and delivering results under the 24MBP.

Shuichi Ishibashi
Member of the Board
Global CEO and
Representative Executive Officer
Bridgestone Corporation

business reforms.
20

Bridgestone 3.0 Journey 2024 Integrated Report21Mid Term Business Plan (2021-2023)—21MBP Summary
21MBP (Mid-Term Business Plan) was formulated and announced in February 2021, targeting the period from 2021 to 2023, as
the starting point for the transformation under Bridgestone 3.0. This aims to become a "strong" Bridgestone capable ofReturn to a “strong” Bridgestone capable ofadapting to change
Not yet returned

adapting to change. In 2023 as its last year, we reviewed our “execution and delivering results” toward the 24MBP focusing
on value creation from 2024.

Positioning of 2023
• Last year of Mid Term Business Plan (2021-2023)—21MBP: Return to a “strong” Bridgestone
capable of adapting to change• Foundation for Mid Term Business Plan (2024-2026)—24MBP: Complete laying the foundation
for premium enhancement and evolution with solutions business• Return to a “strong” Bridgestone capable of adapting to change

Not yet returned• Complete laying the foundation for premium enhancement and linkage with solutions
business
Foundation for premium enhancement

 ompleted: Reinforced structure to “produceCand sell” premium tires
Partially achieved

Foundation for linkage with solutions business

21MBP: With setback in solutions for consumer tires, clarified “what to do” and “what not to do”
Decision to promote mainly retail & service as well as commercial BtoB solutions in the 24MBP

Financial Performance from 2015 to 2023
Currency
exchange

USD
EUR

Adj. Operating
Profit121 JPY
134 JPY

109 JPY
122 JPY

107 JPY
122 JPY

13.6%
12.1%

Adj. Operating
Profit Margin

517.2

132 JPY
138 JPY

141 JPY
152 JPY

103 JPY
126 JPY

21MBP[B JPY][%]110 JPY
130 JPY

11.7%

11.1%

13% level

9.8%
7.7%
343.1

482.6
394.3

480.6

B JPY

450.0

B JPY level

207.4

22

2015

2019

2020

2021

2022

2023

21MBP
(Announced Feb. 2021)
2023 target

Revenue [B JPY]

3,790.3

3,507.2

2,695.2

3,246.1

4,110.1

4,313.8

3,300 level

ROIC

14.7%

7.4%

5.1%

9.0%

9.4%

8.7%

10% level

ROE

13.3%

10.0%

-0.9%

12.9%

10.9%

10.4%

12% level

Profit from continuing
operations [B JPY]

284.3

240.1

-19.8

307.9

305.4

326.9

290 level

Profit margin fromcontinuing operations [%]

7.5%

6.8%

-0.7%

9.5%

7.4%

7.6%

—

Dividend per share [JPY]

130

160

110

170

175

200

Continuous
improvement

In the 21MBP, Bridgestone aimed to be a “strong” Bridgestone
capable of adapting to change, however in 2023 we wereunable to sufficiently adapt to the change amid significant
demand decline in truck & bus tires for replacement mainly
in North America and Europe. Insufficient accuracy indemand and sales forecasts in North America and Europe,
as well as the weak business and channel foundations in
Europe that were exposed by the challenging businessenvironment remain as issues.
As for revenue, Bridgestone secured an increase
versus prior year by achieving sales mix improvement
through expanded sales of premium PS (passenger car)tires for replacement and sales expansion of ultra-large/
large OR (off-road mining) tires, as well as tailwind fromcurrency exchange.
On the other hand, there was a decrease in adjusted
operating profit versus prior year with a significant impact
from Argentina’s hyperinflationary accounting(approximately 10 billion JPY impact on profit decrease)although cost increases from increase in raw material
prices, energy cost and labor cost, as well as deteriorationin plant capacity utilization reflecting sales decline inNorth America and Europe, were covered by improvementin price and sales mix and thorough expense management(profit increase excluding the impact from Argentina’s
hyperinflationary).
ROIC, the most important management indicator, was
8.7%, lower than the 21MBP target of 10%, so there
remained issues in signal monitoring, sensitivity to agilely
adapt to changes, as well as quality and speed of PDCA
(Plan-Do-Check-Act) cycles.

Foundation for premium enhancement
CompletedTo establish the foundation for premium enhancement,
mainly in 2023, we thoroughly selected and executed
investments in reinforcing production to drive premium
enhancement even in the challenging business environment.

Strategic Growth Investment• PS: Invested in replacing manufacturing equipment forhigh rim diameter (HRD) and ENLITEN products (Japan,
Europe and Latin America)• OR: Reinforced production to manufacture Dan-Totsu
product “Bridgestone MASTERCORE” (Japan)• T B: Strengthened manufacturing for premium new tires(Thailand and U.S.)(Adjusted investment timing based on demandenvironment)• MC: Reinforced production in premium race and sports
areas (Japan)

Furthermore, in terms of sales as well, Bridgestone has
steadily driven premium enhancement, such as sales

expansion and improvement in sales mix of PS HRD tires
and PS premium tires as well as sales expansion andincrease in market share of OR premium tires.

Foundation for linkage with solutions businessPartially achieved
Bridgestone has laid the foundation for linkage withsolutions business. In addition to strengthening andexpanding PS retail & service, TB retread, and mining
solutions by linking them to the premium tire business, wehave also laid the groundwork for future development in
the mobility tech business in North America.

Strategic Growth Investment• Reinforced PS retail & service solutions network (North
America and Japan)• TB retread: Reinforced production (North America andJapan)• Enhanced mining solutions network: Acquisition of Otraco
International Pty Ltd, off-the-road tire solutions provider
in Australia, Chile, and South Africa (2021)• L aid foundation for mobility tech business in North
America: Acquisition of digital fleet solutions provider
Azuga (2021)•R esponded to new mobility – Establishment of a mobility
ecosystem: Minor investments, venture capital
investments, etc.

Additionally, in June 2023, we clarified “what to do” and“what not to do”.
We determined unprofitable projects from theviewpoints of profitability, growth potential and value
creation one by one and decided to discontinue solutions
for consumer tires (mainly for PS) in North America &Europe which did not work as a business model. Also, we
decided to promote rebuilding of retread in Europe andAsia which have profitability issues in 24MBP.
Meanwhile, “what to do” is solutions to amplify value ofpremium tire. We will focus on retail & services (in North
America and Japan), TB retread for commercial BtoB
solutions, and mining and aviation solutions. In addition,
for the mobility tech business in North America, which is
positioned as strategic business from the 24MBP, we will
begin initiatives to create new value based on the“Fleetcare” concept which offers premium tires andsolutions as a package service.
Thus, under 21MBP, we could not return to a “strong
Bridgestone capable of adapting to change”, meanwhile
generally completing to lay foundation for premium
enhancement and linkage with solutions business. In 2024,
the first year of the 24MBP, we will reinforce businessquality as a top priority and have a clear path to tackle andresolve the remaining issues of the 21MBP and the newissues from 2023 in order to return a “strong” Bridgestone
capable of adapting to change.

Bridgestone 3.0 Journey 2024 Integrated Report23Mid Term Business Plan (2024-2026)—24MBP
Value Creation Process—24MBP

Mission: Serving Society with Superior Quality
Vision: 2050 Bridgestone continues to provide social value and customer value as a sustainable solutions company
Mid Term Business Plan (2024-2026) −24MBP−
OutputInput
Total equity (as of the end of 2023)

3,405.4 B JPY

Credit ratings (as of the end of 2023)
Moody’s
Financial capital

A2

S&P

Create good business quality “Passion for Excellence” (Management, Working & business quality improvement)
P 36‒

Create good tires

A

P 44‒

P 52‒

P 62‒

1,400 B JPY

WEST

R&D expenses (2024-26 plan)Intellectual capital

Approx.

412 B JPY

Growthbusiness

150 countries and regions(as of the end of 2023)（Build as
strategic business）

保

Biodiversity &nature conservation area (2023)
Bridgestone’s
direct contribution

1,544 haBridgestone DNA
Fundamentals

Ultimate customization

Focus on quality
Sustainability

Compliance, Human rights

New brand power

Respect for being on-site
DE＆I

Governance

Adj. operating
profit margin

13% level

ROE

11% level

ROIC

10% level
250 JPY level

Min.

Build foundation
toward the sustainable growth stage

Amplify trust

Talent creativity(Adj. operating profit ÷ talent investment)

Amplify valueof Dan-Totsu products(INDEX: 2019 = 100)

50

39

% rate of materials using recycledOver
and renewable resources

Technology & Innovation

New ＆ true glocal portfolio management

Being attentive and supportiveof customer problems

Challenging spirit

BCP, Risk management

130 level

More than% reduction
in CO2 emissions (Scope 1, 2) from 2011 level

Tires and solutions “carry life”
New global footprint

JPY
640 Blevel

Dividend per share

Real x Digital

New core competencies

JPY
4,800 Blevel

Adjusted
operating profit

Bridgestone
E8 Commitment
to Our Future

Amplify data value

P 30‒（Interaction with empathy to co-creation）

e

P 74‒

Renewable energy(Electricity) ratio

3,969 thousand tonnes

n
Re

ll

Diversiﬁed
products
business

40,989 thousand GJ
69%

Amount of raw materials used (2023)

Se

留

Exploratory
business

Premium tire businessTotal energy consumption (2023)

Natural capitalCorebusiness&Corebusiness

Operating in more thanSocial and relationshipcapitalMobility techbusiness

Growthbusinessce

125,199

Tire-centric
Solutions

Retail & Service Solutions Network

Number of employees (as of the end of 2023)
Human capital

Mobility Solutions

EAST（16 areas）

Produ

Enhance Intellectual property strategy

Solutions business（31 areas）

cle)

Approx.

eutrality ＆ Circ
nn
ula
o
Use
rb

y”
nom
co
re

Manufactured capital

P 31‒

(R

47 areas

Capital expenditure (2024-26 plan)ecy

New & true glocal portfolio managementw

2,200 B JPY

Towar
d“
Ca

Approx.

RevenueCreate new businesssowing good seeds for the future

Create good business

Cumulative operating cash flows(2024-26 plan)（24MBP 2026 plan）

Enhance talent creativity

Create new DNA

Enhance the initiatives
towards the realization of nature positive

2050

Carbon neutrality*
100% sustainable materials

Peace of mind, Safety* Achieving carbon neutrality for Scope 1,2
and contributing toward carbon neutrality in Scope 3

Social issues and momentum of transformation / Changes in environment surrounding Bridgestone and risks and opportunities

24

P 27‒

Bridgestone 3.0 Journey 2024 Integrated Report25Mid Term Business Plan (2024-2026)—24MBP

Positioning of the 24MBP with the 2030 Long Term Strategic Aspiration as its
Roadmap and the North Star

Changes in Business Environment and Strategic Direction—Transforming Change into Opportunity

In August 2022, Bridgestone announced the “2030 Long

pursue improving management and working & businessIn formulating 24MBP, Bridgestone analyzed changes in thesustainability year by year, we will build the foundation to

Term Strategic Aspiration” as a roadmap toward our 100th

quality, placing a top priority. First, within 2024, we willbusiness environment and their impacts on us comparedcreate sustainability value along with responding to suchanniversary in 2031. It will guide us through an era whensteadily work on “returning to a strong Bridgestone thatto the 2030 Long Term Strategic Aspiration announced

demand. The structural changes in the tire industry are“change is becoming commonplace” with unpredictable

can respond to change” to have a clear path to tackle

in August 2022 from the perspective of both risks andalso continuing, leading to more prominent shifts in market

changes including the accelerated evolution of mobility,

and resolve the remaining issues of the 21MBP and theopportunities with a calm and rational approach.

presence of tire companies within the tire industry and gaps

transformation of the industry, and the emergence of a

new issues from 2023. Based on this, we will then movenew global order. It will also help us continue supporting

forward to the “true next stage” in 2025-2026.

the mobility of people and goods with safety andAs the key initiatives, we will strengthen new & trueFirst, regarding geopolitics, as various changes arein earning power.

continuing globally, we will strengthen our response to

In general, change is becoming even more intense

global procurement, global supply chain, and businessand commonplace. We recognize that evolving into apeace of mind. We aim to become a resilient “excellent”

glocal portfolio management that implements strategies

risks. In mobility & technology, we expect the EV adoption“strong Bridgestone capable of adapting to changes” that

Bridgestone that transforms change into opportunity,

according to the characteristics of each business andspeed softens, however the mid-long term adoption andtransforms this change to opportunity and reinforcing

unperturbed by continuous change while remaining robust

region while ensuring consistency with global strategies,

expansion trend does not change. With this trend, we

its earning power to respond cost increase with changes

and flexible like rubber.

as well as thoroughly strengthen earning power.

will leverage new opportunities by “customizing” diversein business environment are essential to continuously
increase its corporate value.

The 24MBP was formulated with this 2030 Long Term

Specifically, we will focus more on value creation in

performance for diverse mobility with an axis of “newStrategic Aspiration as the North Star in light of theaccordance with four business shaping scenarios; “create

premium” ENLITEN. With an increase in social demand forchanges in the business environment.

good business quality”, “create good tires”, “create

The three axes of management will not change:

good business”, and “create new business sowing good“tackle past negative legacies without delay”, “focus on

seeds for future”. In addition, we will also start building a

execution and delivering results for immediate issues”,

sustainable premium brand.

and “lay foundation for future growth”. We will have
“Passion for Excellence” as its management approach toBusiness environment“Change becomes commonplace”

2030 Long Term Strategic Aspiration

24MBP

21MBP

”Passion for Excellence”

Changes from the time of
the “2030 Long Term Strategic Aspiration” announcement (Aug. 2022)

27MBP

90 anniversary of founding

95 anniversary of founding

2021

2023
Return to a strong Bridgestone
capable of adapting to change

th

2024

2025

Remaining issues& new issues

100 anniversary of founding
th

2026

2031
Become a resilient“excellent”
Bridgestone

True next stage

Strengthen new & true glocal portfolio management(by global, business, and area)

Mobility &Technology• Impact on supply chain and business cost increase

Mobility-related trends:
EV adoption speed softens,
but the mid-long term adoption &expansion trend doesn’t change• Pursue “Ultimate Customization” to respond diverse performancefor diverse mobility• Strengthen approach to premium & prestige OEMs and premium EVs• Continue to evolve DX across value chain(From manufacturing and R&D to solutions)

Dramatic improvement of AI capabilities
etc.

Business shaping scenario – Further focus on value creation
Start building sustainable premium brandSustainability

Increasing and diversifying social demand
for sustainability
Increasing demand to response nature positive

26

Focus on execution and delivering resultsfor immediate issues

24MBP
Impact on Bridgestone• Increased volatility in global business

Understand risks related to conflicts andpolitical trends:
Russia – Ukraine, Middle East,
China – Taiwan, etc.

Reinforce earning power

Tackle past negative legacies
squarely without delay

Toward 2030, and Bridgestone’s 100th anniversary in 2031,
accelerate transformation to a resilient “excellent” Bridgestone

U.S.: Unpredictable political trends &economic outlook
Geopolitics

th“Transform change
to opportunity”

Lay foundation for future growthPresence change within the tire industry
Tire industry
structure

Possibility of a restructuring of
the tire industry• Manage cost increases to respond to sustainability• Strengthen initiatives to respond to sustainability across the value chain• Reinforce earning power
Create good business quality / Create good tires /Create good business /Create new business sowing good seeds for the future

Bridgestone 3.0 Journey 2024 Integrated Report27Mid Term Business Plan (2024-2026)—24MBP

Response to Global Management Risk
Reinforce Structure to Cope with Global
Management Risks to Remain Resilient amidst“Change Becoming Commonplace”—Improve Risk Sensitivity

Geopolitical Risk

TRWP: Tire & Road Wear Particles / 6PPD

<6PPD>
6PPD is an antioxidant and antiozonant widely used in

The Bridgestone Group continuously monitors international<TRWP>

the tire industry. While driving industry-wide initiatives,

tensions, political and economic situations, regulatory trends,

TRWP are the result of friction between the tire and theBridgestone is working to develop alternatives with thebasic premises that tire safety is ensured.

and other factors that may disrupt business operations

road surface which is essential to secure a safe comfortable

In this environment where “change becomes commonplace,”and impact employees and business partners. We

journey with peace of mind, consisting of a mixture of tread

we are strengthening our global and regional risk

promote analyzing business impact when risks materialize,(tire surface) and road pavement materials.

management structure, increasing sensitivity, andand examining measures to minimize that impact, andpromoting proactive risk response in order to improve ourestablishing execution structure. In addition to ensuring

Bridgestone’s Approach

global management risks unaffected by change andability to identify, evaluate, mitigate or reduce, and control

employee safety, protecting assets, providing customer• A s a leading company, Bridgestone is initiating

improving risk sensitivity.

highly important Group-wide risks for building strong

support, and protecting our corporate and brand image, weinvestigation on the physical and chemicalbusiness quality.

are proceeding with specific initiatives such as consideringcharacteristics of TRWP and their impact through theand securing alternative sourcing of raw materials.

Tire Industry Project (TIP) under the World BusinessParticularly, in global management risks, we arestrengthening our response by establishing the Global
Management Risk Committee (GMRC) consisting of

We will continue reinforcing our structure to cope with

Council for Sustainable Development (WBSCD).

Cyber Incident

each regional or business top management. The GMRC

• We actively participate in initiatives in industry
organizations, leading to develop globally harmonizedidentifies and evaluates the most critical risks, formulates

In response to the cyber incident at Bridgestone’s U.S.

test methods as international standards (ISO standards).

appropriate response strategies, and thereby verifies theirsubsidiary in 2022, Bridgestone implemented emergency

Through promoting initiatives to define common

effectiveness. Based on this, annual risk exercises aremeasures in each region. Moreover, for continued

standards for all industry professionals, we aim to

conducted, aiming to ensure alignment of such response

reinforcement of our response capabilities, we establishedreduce the number of tires on the market that do not

strategies with business strategies.

a global cyber security response team and are promoting

meet the common standards and then to mitigate the

The GMRC conducts wide-ranging discussions offundamental countermeasures. Started in 2023, global

emission of TRWP.

management risk and has at present established global

assessment is being conducted to drive standardization of• A s Bridgestone’s unique initiatives, we are pursuing

project teams composed of the top managements ofcountermeasures globally.

across the value chains from “produce and sell” to “use”.

related organizations and members with expertise for threepriority management items.

Technology Development
We are continuing to promote R&D investment
in sustainable technology including material
development to improve wear resistance
performance, etc.

Products
With ENLITEN, a base technology for product design
which pursues “ultimate customization” as an axe,
we are expanding products which provide long-life
by improving wear resistance performance on top of
improving diverse performance desired of tires.
In addition, we are also focusing on improving wear
resistance performance for EV optimized tires, while
promoting with a view to Euro 7 (Next environmental
regulation for motor vehicles) as well.

Solutions
By proposing optimal operations and driving route(shortest route, avoidance of traffic congestion,and reduction of Stop & Go, etc.) for each customer
through real x digital, we will offer solutions that“enable customers to use tires safer, longer, better andmore efficiently” through building the mobility techbusiness.

28

Bridgestone 3.0 Journey 2024 Integrated Report29Mid Term Business Plan (2024-2026)—24MBP

Summary of Global Management Indicators

New & True Glocal and Portfolio Management

In the 24MBP, which is the halfway point toward the

management indicator, is planned to achieve 10% with

Bridgestone developed our new & true glocal and portfolio

business. For the core business, reinforcing earning

realization of the 2030 Long Term Strategic Aspiration,certainty, thorough reinforcement of earning power being

management to achieve the global management indicators.

power and creation of “new premium” are promoted to

Bridgestone strives to improve each of global

conscious of capital cost.

To aim for more than 10% of ROIC globally, the basic axes aregain a solid position in premium segment. In terms ofContinuously improving dividend per share, shareholder

management indicators, which has set in terms of both“to build a strong Bridgestone and strong business quality”,

the growth business, we focus on solutions that amplify

financial indicators and social value and non-financial

returns are expected to be at the level of 250 JPY in 2026

“to improve management quality, working & businessvalue of premium tires and build the foundation to enter

indicators.

at minimum.

quality”, and “to have no business with adjusted operating

growth and expansion stage in the next 27MBP. Regarding

profit margin below 8% ≈ Bridgestone’s assumed WACC

the exploratory business, we will step up from exploring

Regarding social value and non-financial indicators, we

In order to improve financial indicators, we will focus
on improving business quality and reinforcing our earning

will continue to reduce CO2 emissions while expanding

below 5.5% and ROIC below 5.5% (excl. exploratory

technologies to business model, and will also take on the

power. Revenue is planned to be at the level of 4,800 B

production and sales volume, and steadily improvebusiness)”.

challenge of sowing new seeds, providing social value and

JPY in 2026 which is approximately 110% growth versus

recycled and renewable material ratio, in order to achieve2023, by improving business quality globally as well assustainable value creation including our contribution tocharacteristic of our four businesses: premium tire

expanding scale in growing markets. Adjusted operating

sustainability. Talent creativity, which became officiallybusiness as core business, solutions business as growthareas where our core competencies can be leveraged andprofit might be at the level of 640 B JPY in 2026 which ismanagement indicator from the 24MBP, is targeted tobusiness, exploratory business, and diversified products

aim for steady growth.

approximately 130% growth versus 2023 while adjusted

increase by 20 points versus 2023. In addition, as for

operating profit margin will be increased to the level

brand value, we will build a new brand power that aimsof 13%. Together with this, ROIC, the most importantsustainable premium.

We promote portfolio management in line with each

Financial Indicators

Currency
exchange

USD
EUR

True next stage

Final year of 21MBPFirst year of 24MBP

Final year of 24MBP

2019

2023

2024

2026

109 JPY
122 JPY

141 JPY
152 JPY

135 JPY
149 JPY

130 JPY
143 JPY

Revenue 3,507.2 B JPY

4,313.8 B JPY

4,430 B JPY

4,800 B JPY

level

Become a resilient“excellent” Bridgestone

5,000 B JPY

Strengthen quality& expand scale
Expandearning powerlevel

640 B JPY

level

Reinforce
earning power

820 B JPY

Adj. Operating
Profit Margin

9.8%

11.1%

12.0%

13% level

Reinforce
earning power

Over 15% level

Strengthen
quality

ROIC

7.4%

8.7%

9.4%

10% level

12% level

Strengthen
quality

ROE

10.0%

10.4%

10.6%

11% level

13% level

Strengthen
quality—

Strengthen
dividend

Carbon neutrality
CO2 emission reduction

57%

MIN

250 JPY level
MIN

More than 50%(vs. 2011, Scope 1, 2)

Realize circular economy
Renewable & recycledmaterials ratio

Approx. 39%

More than 39%

110

130 level

Talent creativity
INDEX: 2019 = 100( = adj. operating profit ÷talent investment)

Corporate brand value(Interbrand data)

3,600 M USD level2024 – Announced on
February 20
Japan Best Brands 2024: No. 17

24MBP: Ensure more than 10% of ROIC

Reinforce earning
power being consciousof cost of capitallevel

Continue to improve

Evolve sustainability
business model—Expand social value—

Focus on value
creation based on
improvement of
productivity & creativity

Build new corporate branding withsustainable global motorsports at the core(link with the Bridgestone E8 Commitment)

2030
Become a resilient“excellent”
Bridgestone

27MBP— Gain solid position in premium segment —Improve quality
globally
Expand scale ingrowing market

Over

Stage of sustainable growth

Strengthen the premium tire business

530 B JPY

210 JPY

Adj. operating profit margin 8% ≒ Bridgestone’s assumed WACC 5.5% ⇒ No business with ROIC below 5.5% (excl. exploratory business)

120 JPY
130 JPY

480.6 B JPY

200 JPY

Improve management, working & business quality, and business administration levels — Improve cash conversion cycle

21MBP(Announced on August 31, 2022)

343.1 B JPY

160 JPY

To build a strong Bridgestone and strong business quality

Return to a strong Bridgestone capable of adapting to change Remaining issues & new issues Build strong Bridgestone & strong business quality

2030 Long Term Strategic Aspiration

Adj. Operating
ProfitDividend per
share

Social Value and Non-Financial Indicators

Remaining issues &new issues

In the diversified products business, we sharply focus on

24MBP: New& TrueGlocalglocal
Portfolioportfolio
Management
Scenario Overview— Target overview — target —24MBP:
New& truemanagement
scenario

Aim for more than 10%
of ROIC globally
Return to a strong Bridgestone
capable of adapting to changesustainability as the core.

Premium tire businessCore business

Reinforce earning power

Lay foundation forpremium enhancement

Expand premium tires & create “new premium”

Focus on solutions that amplify value of premium tires— Strengthen linkage between premium tires and solution —Solutions business
Growth business

Lay foundation for evolution
with solutions business“Determine““Sowing new seeds”

Exploratory business

Explore technologies

Stage togrow and expand

Focus on retail & service and commercial BtoB solutions— Mobility tech business = Build as strategic business —— Providing social value and sustainability as the core —Diversified products
business

50%“New premium”
2nd stage

Rebuild earning power

Explore to commercialize

Explore business models
Demonstration / small-scale commercialization phase(small & medium scale)“Sharply focus on areas where Bridgestone’s corecompetencies can be leveraged”
Rebuilding & steady growth

Next stage

Steady growth

Expandsocial value40%

New & true glocal and portfolio management is
Aim for place fordiverse talent to shine

based on the “glocal” management that we havebeen promoting since 2020. Based on our global“Glocal*” Management Concept* Glocal = Global × Local

Global strategy

Region / SBU / Area

Global Optimization

strategy, we deploy local strategies adapted to“Trust”“Empathy”

Sustainablepremiumthe characteristics of each region and market suchas mobility maturity and industry structure, while
ensuring total optimization across the value chain.

StrongGlobal strategic view

Maturity of mobility

area

GlocalBridgestone position,
profit structureManagement

Weak

Global consistencyarea

Industry, market,
competition structure

Entire Value-Chain
Optimization
Product
strategy

30

R&D

Procurement

Production
Production
planning

Logistics

Sales

Customer
use

ReduceReuse
RecycleBridgestone 3.0 Journey 2024 Integrated Report31Mid Term Business Plan (2024-2026)—24MBP
New & True Glocal and Portfolio Management

New & True “Glocal” Management Structure:
Management by 47 Areas Focusing on Value
Creation Based on Genbutsu-Genba (Respectfor Being On-site)

Furthermore, we divided the SBUs into 47 areas withManagement by Business Portfolio x Area

Regarding the growth business in the middle row, retailclarified roles and responsibilities as businessand retread in North America and Japan are enhanced

management unit. The 47 areas are the structure to

We have clarified the strategic direction by each businesslinked with the premium tire business. In addition, weemphasize value creation based on “Genbutsu-Genba,”

and area as in the below chart based on the maturity ofreinforce mining and aviation solutions, as well as Webfleet

while focusing on execution and delivering results. By

motorization, growth potential and profitability, andbusiness in Europe and Azuga business in North America

Bridgestone is driving to build a new & true “glocal”

thoroughly reinforcing signal monitoring, visualizing

Bridgestone’s position in the market.

that provide mobility solutions, in order to build the

management structure to execute new & true glocal

issues, and conducting the PDCA cycle, which are

portfolio management.

remaining issues from the 21MBP, we are building themarkets to growing markets with the perspectives ofstructure that enables us to respond to change promptly

motorization, based on the number of PS (passenger car

where the business environment is volatile, we closely

based on Genbutsu-Genba (on-site).

tires) / LT (light truck and bus tires) owned per 1,000 people

monitor the situation and respond with high sensitivity.

and capital GDP. While the vertical axis is organized based

Business rebuilding is promoted for the entire European

on business portfolio.

business, China TB from which we have decided toFirst, by dividing Bridgestone’s business into two major
regions, Bridgestone EAST and Bridgestone WEST, we

On the horizontal axis, each area is mapped from mature

promote our management based on the characteristics of

The Global BRIDGE INTEGRATION plays a global cross-each region, while streamlining support functions in eachfunctional role and effectively support Genba (on-site),region. Under the two regions, six SBUs (Strategic Businesscoordinating with region cross-functional roles as well as

Units) are placed with streamlining functions from theensuring to balance consistency of regional strategy withstrengthen it as a sustainable premium tire business,complex SBU structure.

global strategy.

focusing on mature markets such as North America andOn the other hand, in Latin America including Argentina,

First, for the core business at the top of the chart, wewithdraw, and Thailand where we promote businessrebuilding.
The diversified products business continue to sharply

Japan and specialties tires for mining and aviation.

focus on areas where our core competencies canFurthermore, as for the growing markets of the corebe leveraged.

business such as India and Indonesia in the upper left

Management Structure (As of January 1, 2024)

Global CEO

2 regionsmobility tech business, which is our strategic business.

BRIDGESTONE EAST

BRIDGESTONE WEST

corner, we expand the premium tire business from theSee pages 82–84 for details on financial targets by eachvolume perspective.

business portfolio/area.

24MBP:
New&&True
true
glocalportfolio
management
scenario Managementby business
24MBP: New
GlocalPortfolio
Management
Scenario—Management
by Business Portfolio
x Area portfolio x area
PS: Passenger car tires; TB: Truck & bus tires

Expand the premium tire businessin growing markets

JAPANsegment

6 SBUsReinforce the sustainableglobal premium tire businessCore business

BSJP

G-MICA

BSDP

BSAPICBSAM

BSEMEA

Japan tire

Global mining
tire solutions &Aviationtire solutions

Diversified
product &Exploratory

Asia Pacific,
India, China

Americas

Europe,Middle East,
AfricaPremium tirebusiness

India
Other Southeast Asia

Indonesia
S. Africa

North America
Premium Tire

Middle EastJapan
Premium Tire

China (PS)Japan
RetailSolutionsbusiness

16 areas

EuropeWebfleet

31 areas

Global crossfunctional role

EAST region cross-functional

WEST region cross-functional

EAST BRIDGE INTEGRATIONWEST BRIDGE INTEGRATION

Global cross-functional
Global BRIDGE INTEGRATIONFor Aircraft

Australia & NZ

Japan Solutions(incl. retread)North America
Azuga

North America
RetailNorth America
RetreadMining/Aviation Solutions
Mobility Tech

Strategic business

L. America

Volatile

Region crossfunctional role

For Mining &Construction Vehicle

Expand retail & solutions business mainly in North America and Japan

Growth business“Based on-site”
47 areas

Specialities Tires(Especially Argentina)

Rebuilding

ThailandChina (TB)

Europe Premium Tire (especially TB) & Retail / Retread

Sharply focus on areas where Bridgestone’s corecompetencies can be leveraged

Diversified
products

U.S. Airspring

Growth market

Motorization(Number of passenger car or light truck owned per 1,000 people x Capita GDP*)

Japan Diversified
Products
Sports & cycle

Mature market* Number of passenger cars or light trucks owned per 1,000 people – Economist Intelligence Unit /Capita GDP – Made by Bridgestone based on S&P Global data (as of the end of January 2024)

32

Bridgestone 3.0 Journey 2024 Integrated Report33

24MBP Business Shaping Scenario: Further Focus on Value Creation

Create Good Business Quality “Passion for Excellence” (Management, Working & business quality improvement)• Respecting being on-site (Genbutsu-Genba), perform steady and agile PDCA while sticking to basics / Combination of continuous improvement and innovation / Pursuit of operational excellence• New & true glocal management structure focused on Genbutsu-Genba—”Maximize effectiveness & efficiency”• Have a healthy business risk sensitivity• Tackle past negative legacies squarely / From volume-oriented to quality & value oriented – Next stage• Talent investment—“Enhance talent creativity” / Culture change based on the “Bridgestone E8 Commitment”• Accelerate DX: Enhance use of generative AI

Improve productivity and creativity (Incl. expanding AI algorithm use in business)• Technology & innovation: Reinforce co-creation activities leveraging BIP

Create Good Tires

Reinforce creativity / Reinforce IP strategy

Improve management and working & business quality• Japan: Reinforce training at each level(management / executive / managerial / staff)• Global: Conduct training from the management & executive level ineach region
Expand to managerial & staff levels• Realize “ultimate customization” that sharpens edge in performances that not only meet the needs & wants of market/customers but inspires them.
“ENLITEN” especially for “EV tires” – 24MBP: Expand Generation 1
Build technology to launch Generation 2 in 27MBP• Start “BCMA” + shift to Green & Smart – R&D and manufacturing transformation / Support “ultimate customization”

Create corporate value through balancing social value and customer value creation and gaining competitive advantage

Create Good Business• Reduce business cost: BCMA, Green & Smart, steady on-site productivity improvements, global procurement, global SCM logistics transformation• New premium tire business model: Channel, retread, building a sustainable premium brand• Evolve the sustainability business model: Toward the realization of carbon neutrality & circular economy and nature positive

Create New Business
Sowing Good Seeds
for the Future34• Truck & bus solutions: Establish mobility tech business in North America – Especially “Fleetcare” program• Mining solutions: New value creation through real x digital – New challenge• Aviation solutions: Strategic starting point to establish solutions business model including retread• Sowing new seeds: Evolve AirFree, etc.

Bridgestone 3.0 Journey 2024 Integrated Report35

24MBP Business Shaping Scenario

Create Good Business Quality
Improve Management Quality and Working & Business Quality—Bridgestone DNA / Unique Deming Planfor the improvement of management quality on our 93rd

improvement by sharing excellent practices of TQM

anniversary of founding, we are working on disseminating

activities from each site of the world and evolving quality“Bridgestone’s unique Deming Plan” globally and conductingof working & business. In 2023, the 13th conference was held

In the 24MBP, Bridgestone further focus on value creation in accordance with our business shaping scenario, which consists of theworkshops for all functions and job layers in global operations.

in person for the first time in four years after the COVID-19

following four scenarios: “create good business quality”, “create good tires”, “create good business”, and “create new business

Through these activities, we improve management andpandemic. Sixteen out of more than 2,000 improvement

sowing good seeds for the future”. The top priority issue in 2024 as the first year of the 24MBP, is to create good businessworking & business quality by deepening understanding ofcases submitted from regions and offices around the world

quality. We are striving to improve management and working & business quality globally. What forms the foundation for this is

all global employees on the thoughts of founder Shojiro

were presented as excellent initiatives, followed by

Bridgestone DNA “focus on quality” and the mission “Serving Society with Superior Quality.”

Ishibashi toward its founding which are our origin, Bridgestone

exchanges of opinions among management and award-

DNA that has been cultivated since our founding, and thewinning teams.

Featureintention and history of the Deming Plan.

Bridgestone’s Unique Deming Plan

dedicated to promote and drove the plan toward the Deming
Prize. Bridgestone received it in 1968, and today, we have

In reaffirming Bridgestone DNA, returning to origins, we havecontinued our initiatives lead by “TQM Promotion

begun by reaffirming and re-enhancing understanding of

Department” under Global CQMO (Chief Quality Management

Bridgestone’s unique Deming Plan. The Deming Plan is the

Officer). The basic thought of Bridgestone’s unique Deming

Bridgestone values TQM (Total Quality Management)

activities which we promote toward improvement ofPlan is “good company quality makes good quality ofactivities and the Bridgestone Group Awards, our highest-

management and working & business quality aiming for

products and services”. Based on this, we reaffirm andranking employee recognition program, important as

the “Deming Prize” since 1960s. The Deming Prize wasre-enhance understanding of 5 concepts - “PDCA,” “5W1H

global asset to re-enhance understanding of Bridgestoneestablished in 1951, to honor Dr. Deming who was a(use why why why analysis),” “Promote rational

DNA and the Deming Plan at actual business and on-sitestatistician in the U.S. and greatly contributed to the quality

standardization,” “Explain by using accurate data,” andinitiatives. In particular, since the promotion ofcontrol movement in Japan. Dr. Deming’s idea was that the“Control important points”.

“Bridgestone’s unique Deming Plan” in the 1960s, TQM
activities have been our global asset and inherited as ourquality is created not only in the plant but is a matter ofoverall management, and is deeply related to management
philosophy. The prize isRe-enhancing Understanding of Bridgestone DNA
and Bridgestone’s Unique Deming Plan

Receiving the Deming Application
Prize (1968)

5concepts

strongly reflecting Bridgestone DNA. We have held the

The 13 th Bridgestone Group Global TQM Conference

the aim for encounraging innovation and continues

the highest honor given to a

In order to reaffirm and re-enhancing understanding of thecompany whose quality

Deming Plan, we are initiating our training in all regions,control activities are company-

functions and job layers, from management to all employee

wide and comprehensive.

in global. As a starting point, the Global Executive Committee

We introduced this method in(Global EXCO) was held in March 2024 in Kurume City,

the 1960s when promoting

Fukuoka Prefecture, which is the birthplace of Bridgestone.

the modernization ofVisiting footsteps of the founder, all members of the global

management andmanagement team reaffirmed Bridgestone DNA based on

the improvement to prevent malfunctions in the 6-kilometer conveyor through which tires

enhancement of quality

Genbutsu-Genba (respect for being on-site). Also, we hadflow. By running the conveyor with tires equipped with acceleration sensors, we were able tomanagement activities, andworkshops to reaffirm and re-enhance understanding ofcollect and visualize data on roller rotation defects that were previously invisible, leading toin 1964, we independently“Bridgestone’s unique Deming Plan” and discussed specificpredictive management. I will continue to support our customers’ everyday lives by

named the activities as

management issues with PDCA and why why why analysis,

persistently practicing the “5 concepts of the Deming Plan”, going forward.

“Bridgestone’s unique Deming

as well as visited on-site to see and learn on-site improvement

Plan”, established an

activities based on Genbutsu-Genba (respect for beingorganization which wason-site). Conveying Global CEO’s message to employees

Under the Bridgestone DNA “focus on quality,” we have a responsibility to deliver good tires toour customers at the timing when they want. In order to fulfill such responsibility, we tackled

Shinichiro Kondo
Supervisor, Inspection, Quality Assurance Department, Kurume Plant

customer value for further quality stabilization. This project was complicated and took a longtime for its implementation, however, we achieved it by meticulously conducting the PDCA

Good company quality makes good quality of
products and services① Master PDCA ② Use 5W1H (WHY-WHY- WHY analysis)③ Promote rational standardization④ Explain by using accurate data ⑤ Control important points

Group Global TQM Conference: Awardee

We introduced automated visual inspection machine in the inspection process to improve

Bridgestone’s Unique Deming Plan
Basic
thought

culture to pursue continuous improvement and innovation"Group Global TQM Conference" every year from 2010 withrecognized in the industry as

36

Improve Management Quality and Working &Business Quality:
Strengthen Global TQM Activities Steady

Bridgestone’s unique Deming Plan
- Original Excerpt Edition connected with 24MBP -cycle and monitoring its situation on a weekly basis. Also, the participation in Group Global
TQM Conference gave me a lot of good practices. I will leverage this experience for future
improvement activities.

0/30

Patricia García
Final Inspection, Bridgestone Burgos Plant

Bridgestone 3.0 Journey 2024 Integrated Report37

24MBP Business Shaping Scenario: Good Business Quality

Talent Creativity Enhancement / Creation of New Corporate DNA Linked to theBridgestone E8 Commitment■ Digital Skill Enhancement (Digital 100 Days of Training)proactive and willing to take on challenges in order to

We have introduced the “Digital 100 Days of Training” as anprovide greater value to stakeholders. Through multiple■ Talent Development

opportunity for our employees to choose a program that

initiatives, we continue to support the challenge and growth

Bridgestone undertakes talent development based on asuits their level of ability and challenges them to learn. Theof numerous employees. In addition to creating a placestrategies, the core of the Bridgestone’s talent strategy istalent strategy aligned with its business strategy. In addition

program covers a wide range of skill levels, including

where diverse talent can shine and take on diverse

based on the idea of providing opportunities for diverse

to strengthening the Bridgestone DNA, we are expanding

beginner training in basic digital literacy compiled by thechallenges, we are promoting the creation of a newtalent to shine through the spread of individual success andlearning and challenging opportunities to support talent who

Digital Literacy Council, and in-depth training in which

corporate culture, corporate DNA, and culture change linked

confidence. At the same time, this aims to enhance corporate

are keen to take on challenges and grow on their own toparticipants learn digital technology related to their own

to improving employee engagement and creating value

value by creating added value linked to business strategy. In

create further value. This will help ensure both the company’s

field. In 2023, a total of over 700 employees worked tothrough the Bridgestone E8 Commitment.

order to realize our 2030 Long Term Strategic Aspiration andgrowth and each employee’s growth can be realized.

strengthen their digital skills. We believe that creating social

improve the quality of our management and working &Through these efforts, we aim to create a virtuous cycle ofvalue and customer value through the fusion of the real andbusiness, which is a priority issue in 24MBP, we need to hirevalue creation while increasing employee engagement.

the digital is indispensable to achieving the goals of 24MBP

Specific Efforts to Enhance Talent Creativity

Improving Productivity and Creativity(Talent Creativity) of Every Individual
In order to promote a talent strategy linked to businesstalent uniquely suited to Bridgestone who share and embody
the Bridgestone DNA, and then improve the productivity andcreativity of each and every one of these employees. We are■ Genba (On-site) 100-Day Challenge Program

In April 2023, we launched the “Genba (On-site) 100-Day

undertaking various initiatives to ensure that the corporate

Challenge Program”, in which employees take the initiative

growth and the growth of each and every employee go handto engage in investigating and verifying any issues orin hand.

hypotheses they have formulated on their own about theirAs an indicator of these efforts, “talent creativity” was first

At Bridgestone, we make ongoing improvements to create

and realizing our 2030 Long Term Strategic Aspiration. We

workplace environments that are inclusive to diverse

will continue to globally expand our foundation of digital

personnel. These include on-site improvement activities

talent, promoting their ongoing development and acquisition.

and the use of FemTech programs to help resolve women’s
health issues through technology.

Creating an Environment where Diverse Talent
can Shine

As part of our on-site improvement activities, we makeinvestments that generate immediate results based on
feedback from employees at the foremost front lines of ourrespective operations. This initiative would be conducted for■ Creating a Place for Diverse Talent to Shine

business. We are also working to enhance benefits, improve

Based on the belief that the success of diverse talent leads

the workplace environment and reduce employee workloads.

people from diverse functions and departments, including

to the creation of value as expressed in the Bridgestone E8

In particular, safety is the very foundation of corporate

capital, increase added value, and create a virtuous cycle ofsafety and procurement, took part in the program. FromCommitment, Bridgestone has created a workplace

management, and as such each and every employee strives

value creation. We define the “talent creativity KPI” as

2024 and beyond, the program will be expanded globally toenvironment that allows our diverse workforce to shine.

for “Safety First, Always”, as stated in our Safety Mission

adjusted operating profit (added value) divided by talentencourage even more employees to take up the challenge.

Positioning the improvement of employee engagement as

Statement, by promoting safety activities throughout theinvestment (sum of labor, training, and benefits costs), andone of the key issues in promoting global culture change invalue chain, thereby ensuring we can all work with peace ofuse this as a common global measure to monitor global

line with the Bridgestone E8 Commitment, from 2023, wemind in a safe workplace. As we work toward an environment

trends and address issues in each region and country.

have transitioned to monitoring through a globally

where diverse talent can flourish, we update our safety andstandardized engagement survey. While respecting thedisaster-preparedness standards taking into consideration a

differences in culture and characteristics of each country

variety of changes in conditions, including ergonomic risks,and region, we will deepen and evolve our efforts using a

regulatory changes, the changing performance of machineryshared global evaluation and framework for activities.

and equipment over time, and the introduction of newtested in 2023 and introduced as a global management

100 days at Japanese or overseas worksites, thereby

indicator starting from the 24MBP. The basic concept ofpromoting awareness and behavioral change. In 2023, 15“talent creativity” is to strengthen investment in human“Genba (on-site) 100-Day Challenge Program” was a

Talent Creativity KPIvaluable opportunity for me, as a member of the Quality
Division, to collaborate with my teammates in Japan andoverseas involved in the growth business of TB retread

Talentcreativity

Added value

UP

Further challenge
to create added value

UP

Talent investment

tires, and to drive PDCA cycle and improvements on
Genbutsu-Genba. I have gained valuable knowledge from
activities such as improvement activities analyzing eachUP

individual tire and identifying the cause of failures throughthe actual product review meetings in Japan, data-driven
Averagefor 24MBP

130 level
117
100

119
110

117

125 level

The Bridgestone is active across a broad range of business+10 Pts level

development of safety awareness seriously. We will continue

and a value chain that extends from upstream (raw materials)

to develop workplaces where a diverse range of people canto downstream (sales and services). In all business areas andwork easily and with high motivation.

across the entire value chain, we believe it is essential to bemarket analysis tools in the United States, and activities
to strengthen recurrence prevention using the Process QA

The Fundamental Area Safety team within Global Quality Management

Reference List. I was also able to build a wide network ofCommittee, has been developing a comprehensive roadmap to build
a Strong Safety Culture, aiming to achieve globally ‘Perfect Safety’to improve the working & business quality based on theas stated in our Safety Mission Statement. For this goal, our teamoriginal five concepts ofpromotes safety from Awareness, Engineering and System aspects

the Deming Plan, with asuch as implementation of fundamental activities (3S, KY, RA, Safety

focus on strengthening the

2019

2020

2021

2022

2023 2024
Result2025

rules), development of safety technologies and establishment ofRetread QA system.

24MBP

74

Anisara Tisamee
2026

technologies. Furthermore, all our employees take theareas, including premium tires, solutions, diversified products,

global connections. Moving forward, I will make efforts
21MBP→24MBP

Averagefor 21MBP

115

38■ Establishing a Pleasant Working Environment

Takuma Nishida
CQO/Quality Division
G-Material & Evaluation
QA System Section

General Manager
Safety and Disaster
Prevention, Bridgestone
APIC

global safety standards. Also ‘Safety Maturity Assessment’ is utilized
for continuous improvement in the PDCA cycle. Viewing safety as thefoundation of corporate management, we contribute to the entire
value chain by fostering a safety culture that protects our teammatesand creating safe and worker-friendly working environments.

Bridgestone 3.0 Journey 2024 Integrated Report39

24MBP Business Shaping Scenario: Good Business Quality

Bridgestone’s DX

Co-creation Leveraging Bridgestone Innovation Park “From Interaction with
Empathy to Co-creation”
EnergyBridgestone E8 Commitment

Ecology

Efficiency

Extension

EconomyEmpowerment
EnergyBridgestone E8 Commitment

Ecology

Efficiency

Extension

Empowerment

Linked with talent creativity enhancement, Bridgestone

development, and introduction of the tire building systemevolves DX (Digital Transformation) that supports value“EXAMATION”, which is equipped with AI. These initiatives

For future value creation, ”co-creation” is essential,

As one of the examples, Bridgestone is accelerating joint

creation and productivity & creativity improvement.

have contributed to the development of Dan-Totsu

connecting with employees, society, partners, andresearch with Nippon Telegraph and Telephone Corporation

The theme of Bridgestone’s DX is “Faster, easier, andproducts by linking data to the engineering chain. Whilecustomers to create new value. Bridgestone’s R&D facility in(“NTT”) since there are many areas in which we canmore accurate with larger data.” Utilizing our uniquefurther developing these initiatives, Bridgestone is

Kodaira, Tokyo, was redeveloped as “Bridgestonecollaborate with NTT given the high compatibility between

simulations and algorithms, we aim to accelerate

promoting DX to create social and customer value by

Innovation Park (BIP)”, a global hub for innovation. Its

the visions of both companies. This joint research is based

innovation by combining our strong “real”, such as market

connecting throughout the value chain and amplifying

full-scale operation commenced in 2022. BIP consists ofon the strengths of both companies in three areas: “Digitaland customer data obtained through our field engineeringvalue of Dan-Totsu products such as by providing solutions

three main facilities designed to promote interaction with

Twin”, “Sustainability”, and “Creating environmentally andactivities, technology and development data cultivatedthrough building our unique algorithms utilizing AI.

empathy and cultivate relationships through co-ideation

people-friendly cities through tires”. Co-creation with TIER

and co-R&D to realize co-creation. First, “Bridgestone

IV, Inc. is also being promoted, aiming for contribution toincrease the headcount of global digital talent from

Innovation Gallery” aims to acquire empathy by showcasing

the evolution of mobility, such as R&D andthrough empirical experiments and demonstrations, with“digital”.
Since the 2000s, we have gradually introduced digital

What supports this DX is global digital talent. We plan toapproximately 1,600 in 2023 to the level of 2,000 in 2026

our history, DNA, business activities, and future initiatives.

commercialization of autonomous driving technology. In

power (digital capabilities) into our R&D and manufacturing,on a global basis, through the expansion of in-house

Second, “B-Innovation” is an innovation center composed

addition, we are expanding co-creation activities throughincluding the introduction of material informatics in the

training, including reskilling programs, and co-creationof “Bridgestone Open Innovation Hub”, where people cancollaboration with industrial, governmental, and academia

material domain, simulation technology in productwith partners such as universities.

view and engage with core Bridgestone technologies andpartners that leverage our core competencies. This includes

products with the aim of giving rise to new ideas, thejoint research with Tohoku University, that promotes“Rough Prototyping Studio”, where machine tools are usedmaterials development in the next-generation synchrotron

to give shape to ideas, and the “Co-creation Office”, which isradiation facility, “NanoTerasu”, and collaboration with

open to external partners. Third, “B-Mobility” is a proving

Kyushu University, that promotes comprehensive initiatives

ground that can be used to quickly experience and verify thesuch as joint research and talent development.

Faster, easier, and more accurate with larger data

Engineering Chain Feedback to development of “Dan-Totsu products”

2009 〜

performance and potential of prototype mobility

Amplify value“See” & “Analyze”
technology(Polymer design, composition design)

Tire design knowhow, measured & test data
Visualization of road contact condition
by ULTIMATE EYE®

Craftsperson skills

Product development

Manufacturing

Material

1980 〜2010 〜

technologies and products with actual vehicles.
Collect tire data
and mobility data

Real

DigitalMaterial informatics

Tire design utilizing simulation

Visualize & standardize“craftsperson skills”
Promote shift to Smart

Increasecreativity

including the U.S. (Akron, Ohio) and Europe (Rome, Italy),
we are initiating technology development based one.g. Co-creation with JAL

customer value starting with BIP. In 2023, approximately

role-sharing reflecting the geographical advantages and2020 〜

2,200 people visited the Open Innovation Hub, and 17 cases

strengths of each center, and are promoting co-creation

have evolved into joint research.

activities globally to achieve it.

Increaseproductivity(AI utilization & technology
to solve at the micro level)

technical centers as our innovation sites in 3 regions

We are promoting joint research with industrial,
governmental, and academia partners to create social andContact tosociety & customer

2016 〜
AI-implemented tire building
system EXAMATION®

With BIP at the core, working together with the global

Evolve from wear prediction
to durability prediction model
leveraging unique AI & algorithms

Connect the value chain and link with the solutions business
Amplify value of “Dan-Totsu products”
Global digital talent(Advanced & Intermediate)

Approx. 1,600 people in 2023,
approx. 1,700 people in 2024

→ To the level of 2,000 people in 2026

Enhance internal training& co-create with partners

Improve productivity &creativity leveraging generative AI– Improve working efficiency –We have been planning a digital talent development program with the aim of enabling all
employees to understand the meaning of data and the characteristics of digital technology

Opened April 2022

and apply them to their work to create new value. We have built level-based training programs
that allow people who have not been exposed to digital technology to initiate their learning,systematically learning from beginner to advanced levels. This training program incorporates
Bridgestone’s unique issues and data as case studies, so that participants can view the training

Accelerate “from interaction with empathy to co-creation” based on the Bridgestone E8 Commitment

content as their own studies, so that participants can better connect training content to theireveryday work and enhance matters and enhance the learning effect.

2023(cumulative total from 2022)

Yasushi Hanatsuka
Director
Digital Solution AI/IoT Planning and Development Division

40

2024

Customer & partner visits(Open Innovation Hub)Approx.

2,200 visitors

Evolved into
joint research

17casesDevelop as business base for Japan tire business—promote co-creation activities through integration of R&B (research and business)

Bridgestone 3.0 Journey 2024 Integrated Report41

24MBP Business Shaping Scenario: Good Business Quality

Intellectual Property Strategy
Innovating the Tradition of Utilizing
Intellectual Property

point for value translation is our true strength, and forms

Bridgestone is striving to manage intellectual property (IP)

our ability to gain insight into dormant needs that our

Mechanisms for Visualization in ENLITEN,
Bridgestone’s Unique Base Technology for
Product Design and BCMAin a way that enhances corporate value by visualizing

customers are not yet even aware of, and to offer solutions

In ENLITEN/BCMA, we hypothesize the relationshipmechanisms to convert IP into social value and customer

based on our ability to see and know the market and otherbetween the fundamental technology and thevalue. It is also managing IP by verifying the effectivenessphenomena on-site—an ability we have prioritized everbusiness model to be pursued, and visualize theof IP investment from an ROIC perspective, thereby

since our founding. Much of our “IP secret sauce” emerged

mechanism by which intellectual property is

increasing the certainty of investment.

from motorsports activities—effectively, our “mobile

converted into value, as shown in the diagram to thelaboratory”—which has been passed down to the present

right. Our “secret sauce” of proprietary technologies,

and development of our unique “IP secret sauce” as aday. On the other hand, in terms of digital, our ability toconsisting of patents, knowledge and expertise, isfundamental aspect to all our businesses. Based on thisdecipher big data and convert it into knowledge that leads

linked to “mastering rubber”, “mastering roadbusiness model of ENLITEN and BCMA. Since

fundamental approach, we strategically undertake IP

to solutions for customers serves as the foundation of ourmanagement to amplify social value and customer value by

DX-based business such as aviation solutions and mining

contact”, and “mastering manufacturing” ofvisualization has enabled mutual understanding

understanding and visualizing diverse IP such as knowledge,

solutions. This “IP secret sauce”, which combines both realtechnology innovation and our strengths in supply

between us and our R&D and business divisions inexpertise, and patents generated on-site (Genbutsu-Genba)

and digital aspects, is converted into new IP, including notchain management. Furthermore, this will be

the field, prioritization of IP investment has been

throughout the value chain. Then we effectively combine

only the IP cultivated through manufacturing but also in theconverted into value through the expansion of total

decided through close communication. This enables

them as an IP mix tailored to the business model.

domain of business models through our unique IP mix. By

performance of tires, modular design/flexible

us to achieve IP management that increases the

production, and an integrated system of sales,certainty of value amplification.

the core of our IP portfolio from both real and digital
perspectives. The real perspective, for example, includes

Our IP activities are based on the creation, succession,

strategically combining IP—including not only patents but
Creation of social value and customer value
Premium Tire Business

Solutions Business

Exploratory Businessalso peripheral knowledge and expertise—we can amplify

Connecting
IP management

Visualization oftacit knowledge

IP that expands value
Businessmodel patents
Quality assurance/service know-how

Secretsauce IPReal × Digital

Technical
IP

Patent area
Confidential area

Knowledge to be able toconvert data (digital)
Knowledge/know-how ofbackground (real)

The IP mix

Talent that continues to evolve toinheriting our DNA

Convert IP
into value
through
IP management

Improvement of tire performance

Mastering road contact

Mastering rubber

Secretsauce IP

Integrated system of sales,
production and R&D

Modular design and ﬂexible production

Mastering manufacturing

SCM optimization

IP that expands value
Patents

Knowledge/know-how

Conﬁdential technology

production, and development, lead to forming theLeveraging Intellectual Property in
Co-Creation Activities

enhance the IP value and corporate value of bothand solutions business from our competitors—not only on

Our IP division has been involved from the initialin being able to conduct co-creation activities based

the manufacturing floor (Genbutsu-Genba) but also throughstages of our co-creation activities with TIER IV, Inc.

on free and open communication in order to utilize

communication with all departments, including development,

helping to establish an IP safe zone that ensures a

TIER IV’s technologies and expertise in autonomous

production, logistics, sales, service, solutions, and more.

win—win for both parties by preparing IP

driving, which is a new technological field, in

We are expanding and strengthening our IP mix to link ouragreements. The combination of our unique IP in tiredeveloping tires and solutions. For example, we haveunique strengths to creating business value. By visualizing a

manufacturing and TIER IV’s unique IP in innovative

gained insight into key factors of basic tiremechanism for translating value across the entire value chain

autonomous driving technology creates IP that could

performance previously not visible to us, which haswith the IP mix as its axis, we connect our strengths to thenever be realized alone, and can be expected to

led to the creation of new IP.

parties. For Bridgestone, there is a huge advantage

fusion of tradition and innovation.
In both real and digital terms, it is talent that creates this“IP secret sauce” and develops it into true value. The
Bridgestone E8 Commitment and the organizational
capability to cultivate talent that keeps evolving and

We are also using amplification of value through IP
visualization in co-creation activities with partnercompanies. In achieving IP management through open
innovation, we strive to create synergies that generatevalue for both parties by organically combining our IP withthat of our partners, based on the fundamental premise of42

Reduce cost － simpliﬁcation

Achieving both performance and simplicity / optimizing the entire value chain

knowledge that is crucial in differentiating our manufacturing

elements of our IP management.

In order to translate IP into social value and customer value,

respecting the IP of partner companies. By visualizing each

we utilize two methods of visualization—“mechanism

other’s IP and through transparent and fair IP contracts thatvisualization” and “tacit knowledge visualization”—toclearly identify the ownership of intellectual property, we

increase the certainty of the IP investment’s contribution

establish an “IP safe zone” where both parties can shareto business. In concrete terms, mechanism visualization

intellectual property with peace of mind, thus contributing

allows us to grasp the characteristics of each businessto fair communication, free and open-minded win–win

portfolio and work toward IP management linked toco-creation activities, and building relationships to that end.

business strategy. The “IP secret sauce” that is the starting

Improve product power－Generate customer delight

Customer value

In addition, in the area of tacit knowledge visualization, we

passing on our corporate culture and DNA are also key

Toward Translating Intellectual Property into
Social Value and Customer Value“New premium”

Social value

and expand value in efficient and strategic ways.
identify and extract “craftsperson skills” as the tacit

Visualizationof the conversion
mechanism● ENLITEN×BCMA IP Influence Diagram

Verifying Return on IP Investment Using ROIC

multiple KPIs from both inward-looking and outward-looking
perspectives, we will continue to strive to continuously

We verify the effectiveness of IP management byimprove our IP management and enhance quality of

implementing the concept of ROIC, our key management

operations by verifying the effectiveness of IP investment.

indicator. Specifically, we set “IP value creativity” as a results-

IP valuecreativity

driven KPI that measures the contribution to sales generated
by leveraging IP and IP revenue. We also set factor-oriented

IP value＝

IP investments

KPIs that measure management efforts. The quality of IP
operations is improved by verifying overall IP managementwith results-driven KPIs, and by implementing the PDCA cycle

8.8

9.4

10.2

10.5

10.9

for management measures with factor-oriented KPIs.
Bridgestone’s IP value creativity nearly doubled in 2023
compared to 2019, thanks to our thorough implementation oflean IP investment, improving the quality of our IP mix, and

4.7

5.2

2022–

6.0

Management ofenhancing IP value

2021

the efficient and strategic use of IP mix tailored to business

Implementation of lean IP investment

models. As of the end of 2023, the number of IP mix units,
which is one of our factor-oriented KPIs, was 15 units currently
being utilized and 26 units under preparation. Having set

2019

2020

2021

2022

2023

2024

2025

2026

Bridgestone 3.0 Journey 2024 Integrated Report43

24MBP Business Shaping Scenario

Create Good Tires
In the second business shaping scenario, “create good tires,” Bridgestone accelerates value creation through the fusion ofshare with high rim diameter tires, and thoroughly pursue

business foundation, we promote to expand sales and

ENLITEN, the base technology for product design, positioned as Bridgestone’s unique “new premium,” and BCMA, the baseour focus on premium in other regions also.

increase market share in the entire TB business for new

Regarding TB (truck and bus) tires for replacement, we

technology for R&D and manufacturing that reduces business cost.

and retread tires.

plan to expand sales and increase market share globally,

From Volume to Value—Accelerating Focus on Premium
Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extensiontires are ultra premium, we expand sales and increaseand Japan, Bridgestone will increase the portion of retread

market share with Bridgestone MASTERCORE at our core,tires in the entire TB business to 50% globally in 2026.

as a Dan-Totsu product.

Particularly in North America, where we have a strong

PS premium tires (replacement)
Accelerate shift to premium

Strategic Direction from a Mid-long-term
Perspective: Why Does Bridgestone Need toCreate “New premium”?

Strengthen Existing Premium Segment“From Volume to Value”: Accelerating Focus
on Premium

Currently, the demand growth for high rim diameter tires as

Focusing on PS tires, where a tailwind in demand continues,

the premium segment becomes a tailwind for PS (passenger

Bridgestone is accelerating its focus on premium, “fromcar) tires. This tailwind is expected to continue during thevolume to value” in all product types, and is driving sales

24MBP period, however, may slow down after 2030 or

and is aiming to increase market share in the premium

possibly a little earlier.

segment.

First, during the 24MBP period, we will seize the tailwind

For OR (off-the-road for mining vehicle) tires, where all

and by strengthening retread tires mainly in North America

OR Ultra-large & large

TB (replacement)

All ultra premium tires
Reinforce sales & market share increase

Increase sales & market sharefor new tires + retread

High rim diameter tires

New tires

Large tires (OE + REP)

U.S., Europe, Middle East: 18 inch & above Other regions: 17 inch & above

Retread tires

Ultra-large tires

Premium tire brand + premium tires in each region
Other tires

ENLITEN
equipment
ENLITEN
equipment

Approx.

65%

ENLITEN
equipment

ENLITEN
equipment

Approx.

Approx.

ENLITEN
equipment

100%

ENLITEN
equipment

8%

Premium ratio
Approx. 70%

For PS tires for replacement, we improve the sales mix,

in demand to the fullest extent. To overcome “decrease

increasing the sales ratio of premium tires including

57%

in tailwinds” after 2030 and keep growing, Bridgestone

premium tire brands to 70% in 2026. For high rim diameter

20%

will create its own “new premium” starting from thetires, we also focus on ultra-HRD tires 20 inch and above

24MBP period.

and further expand sales and market share. Particularly, in

36%

3%

70%

Approx. 100%

Approx.

40%

Approx. 90%

Approx. 90%

Ratio of ultra-large
63 inch MASTERCORE

Further
expandpremium ratio

Approx. 25%

Approx. 45%

Retread ratio

Approx. 50%

48%

Approx. 50%

2023

2026

2030

North America, the most important market, we aim tocontinue to strengthen sales expansion and market share

2021

2023

2026

2030

2021

2021

2023

2026

2030

increase and improve the sales portion of high rim
diameter tires to 65% and the sales portion of premium
tires to 80%. In Europe, we aim to increase our market

44

Bridgestone 3.0 Journey 2024 Integrated Report45

24MBP Business Shaping Scenario: Create Good Tires

Premium Tires for Passenger Cars—ENLITEN as New Premium in the EV Era
Bridgestone E8 Commitment

EnergyEcology

Efficiency

Based on the foundation of reinforcing existing premium,
Bridgestone creates its own unique “new premium” throughthe expansion of ENLITEN, the base technology for productdesign. ENLITEN is a technology that evolves environmental
performance while expanding basic performance andelevating all conventional performances. It also pursues“ultimate customization” to sharpen edge in a performance
which not only meets the apparent needs and potential
wants of the markets and customers, but also further
inspires markets and customers by creating new value thatthey may not have imagined, according to thecharacteristics of diverse vehicles and usage conditions.
Particularly for PS tires, we respond to changes anddiversification of desired tire values on the back of the
adoption of EVs, etc., as “new premium in the EV era”.

ENLITEN Expansion — OE/REP Linkage:
Premium Tires for Passenger Cars — OE
For original equipment (OE), the starting point of expanding
ENLITEN, we strengthen our approach to premium vehicles/
OEMs, prestige OEMs, and premium EVs. By developing“ultimate customization” with ENLITEN technology andproving its value, we aim to expand the number of new car
models that come fitted with ENLITEN OE-produced tires from
75 models at the end of 2023 to approximately 250 models at
the end of 2026 including emerging EV manufacturers (global
cumulative total). Also, through strengthening approach toprestige OEMs, we will link this with building a sustainablepremium brand.
Premium EV users in the initial stage of EV adoption
have a high tendency for recursion from OE to REP tires.
We steadily capture REP recursion demand, starting fromthe expansion of OE fitment.

Number of car models with ENLITEN OE fitment (global)
Approx. 250

Non-EV

Create Value in REP Tires by Leveraging “Retail& Service Network” as a Touchpoint with
Customers and Vehicles
Based on the retail & service network, which serves as atouchpoint between Bridgestone and its customers andvehicles, we create new demand by ourselves throughstrengthening value creation in REP tires. By being attentive
to customers, providing high-quality services and listening
to the voice of customers at retail sites, we meticulously
understand the value desired of tires by car and by market.
In addition, through end-of-life tire surveys by fieldengineers on-site (Genbutsu-Genba) we identify challenges
and promote tire product planning and development topursue “ultimate customization”, starting from customer
pain points.
In 2023, Bridgestone launched the TURANZA EV, our firsttire specifically designed for EVs, reflecting customer
feedback from the U.S. West Coast and addressing theissues of enhancing sustainability and early tire wear on
EVs. In Europe, we have also launched TURANZA 6, which
is EV ready and has enhanced wet-handling performanceand wear, etc. required in the European market. In Japan,
we launched the REGNO GR-X III in February 2024, the first
ENLITEN-equipped tire for REP use in Japan. This has also
improved handling performance, sharpening our edge inquietness, and enhanced the environmental performanceby using renewable resources as raw materials. From
2024, we plan a full-scale expansion of the number of
ENLITEN-equipped REP tires for the global market, aiming
for a cumulative total of 45 products and 65% ENLITENequipped products by 2026, and 100 products and 100%
ENLITEN-equipped products by 2030.
The 24MBP is the “1st stage of the new premium” that offers
new value to customers by expanding the first generation of
ENLITEN technology. The 27MBP will be the “2nd stage of new
premium” where we launch the 2nd generation of ENLITEN in
the market, expanding value together with the evolution ofbrand power which aims to establish a sustainable premium.

Strengthen approach to premium &prestige OEMs
Expand OE fitment including for EVs

Original Equipment(OEMs in Japan / Europe / U.S. / China, etc.)

ICE

Improvement in driving range /Low electricity consumption

Replacement

Reduce environmental
impact / Long-life

EV

Increased severity on tires

Hardware-defined vehicle

Software-defined vehicle* Internal combustion engine
Customertouchpoint

Customertouchpoint

Retail & service network

Touchpoint with customers & cars
– Be attentive to & deeply understand customer problems –2 High-quality service & maintenance through the retail network

End-of-life tire survey on-site(Genbutsu-Genba),
identification of issues

Support from the ground up even during
product use phase.
Improve customer experience value, gain trust.

Gather insight from
Genbutsu-Genba observations &interviews with users

1

Dan-Totsu products

Field engineering

Tire product planning & development withcustomer problems as the starting point

Solve with “ultimate customization”

Generate customer delight with
Dan-Totsu products

ENLITEN - equipped REP products

North America

Japan

EuropeBridgestone’s first EV
specialized product for
replacement equippedwith ENLITEN

Launched Sep. 2023

Launched Feb. 2024

Dry Braking

Braking
Dry Handling

Noise

WeightComfortNoise

Wet-handling

ComfortWet-handling

Wear ResistanceRRC

The first ENLITEN productfor replacement in Japan

2024: Expand to India & Asia
2025: Expand to China

Launched May 2023

Dry Handling

OE-REP linked productanticipating EV expansion

Provide new value with improved wear resistance(+50% vs. Bridgestone’s conventional product),
an issue for EVs and increased renewable & recycled material
ratio to 50%

Wet Handling

Wear Resistance
MCN

More than 20% higher wear resistance vs.
Bridgestone’s conventional product.

Significantly improved wet-handling performanceand rolling resistance, important performances in theEuropean market. Balanced in every performance at a high dimension.

Quietness

Dry HandlingLight Weight

Wear Resistance

WeightLow RRC

MCN

ComfortMCN

Fuel Efficiency

Comfort achieved from superior quietness, and driving

performance refined with highly responsive handling.

Contribute to the realization of sustainability throughreduced weight and use of recycled & renewable materials.

Our team worked on developing “TURANZA EV”, Bridgestone’s first EV specialized tire equippedwith ENLITEN technology, to realize our vision “Sustainable solutions company”.

EV

Approx.

Creating social value linking with business

150

27

45

20
7

29

2021

2022

16

44

Approx.

100

31
2023

2026 plan

We aimed to offer the performance which contributes to sustainability to customers, andalso listening to the voice of customers, mainly from the West Coast where the shift to EV isadvancing, cooperation with Bridgestone retail channel network to capture clearly the pain

Through the expansion of ENLITEN, the “newpremium in the EV era”, we commit to therealization of a caron neutral mobility society—
Energy in the Bridgestone E8 Commitment.

75

46

Value creation in REP tires, leveraging retail & service network

Extension

points on EV such as premature wear.
After many co-creations with diverse departments to realize our vision, ENLITEN technology
was first installed in North America. We also achieved to provide customers EV-specialized
tire with improved wear resistance by 50% versus conventional product and with recycled &renewable material of 50%.

Jeff Cook
Executive Director
Product Strategy and Portfolio Planning, Bridgestone Americas

Bridgestone 3.0 Journey 2024 Integrated Report47

24MBP Business Shaping Scenario: Create Good Tires

R&D and Manufacturing Transformation: BCMA (Bridgestone Commonality
Modularity Architecture)
EnergyBridgestone E8 Commitment

Ecology

Efficiency

BCMA, supporting “ultimate customization” consolidates
tire parts into three modules and shares them among
different products, simplifying the supply chain including
development and production. It is Bridgestone’s basetechnology for R&D and manufacturing which shortensdevelopment and production lead times to agilely provide
value to customers while also aiming to reduce business cost
including environmental impact.
In promoting BCMA during the 24MBP, we pursue theessence of R&D and manufacturing based on Genbutsu-Genba(respect for being on-site) to start creating benefit, focusing onvalue creation. Direct benefits, or the primary benefits fromBCMA are generated from the first year of BCMA introduction in
2024. These consist of manufacturing cost down related toreducing changeover in production by sharing parts between
products, and development cost reduction due to module
sharing. Secondary benefits plan to be created mainly fromthe second year of BCMA introduction in 2025, in which we
expect the reduction in direct material cost and in conversion
cost from productivity improvement. These include benefits
from the evolution of R&D and manufacturing such as
improved capacity in production process and reduced
workload at production sites in BCMA deployment.
These benefits will be adjusted according to each plant’s
R&D and manufacturing power. Plants in the EAST regions(Japan and Asia), that already have high R&D andmanufacturing power and have high productivity, tend tohave smaller room for improvement through BCMA. On theother hand, plants in the WEST regions (U.S. and Europe),that face challenges in manufacturing, tend to have greaterroom for improvement. We lead to create value by
specifying the benefit in each plant according to the roles
and responsibilities of each of the 45 new tire plants clarified
in 2023. Four tire plants globally, two each from Bridgestone
EAST and WEST, have been designed as model plants andlead benefit creation. (Model plants: Burgos plant in Spain;
Joliette plant in Canada; Nong Khae plant in Thailand; Tochigi
plant in Japan.) During the 24MBP period, we will switch
approximately 50% of our global PS tire production to BCMA.
BCMA global benefit amountAccelerate value creation by steadily deploying BCMA in each plant
BCMA global benefit

Amplificationof value
Secondary benefit toemerge from the
2nd year of BCMA
introduction

SecondarybenefitPrimary benefit2024
1st year48

2025
2nd year2026
3rd year・・・BCMA introduction

Extension

Shift to Green & Smart: Targets
2026 targets

EconomyGreen

50% over reduction

CO2 emissions

Maximize value with minimum
sustainable resources

Deployment ratio of ultimate “circle” technology

Smart(Deployment ratio for technology applicable machine)

Less skills/High efficiency labor productivity

Value creation fusing ENLITEN and BCMA gradually starts

Tread (tire surface)in 2024 and will expand in 2025-2026 as the true next

Customization

stage, to reinforce earning power. In the 27MBP, we willbuild a foundation to further reinforce business quality
and expand earning power.

Carcass(tire skeleton)Belt(reinforces tire)2011)
50% reduction (vs.
(Scope 1, 2)Over 70%

Renewable energy (electricity)“Strong” real (Takumi) x
digital mastering manufacturing2030 targets(vs. 2011)(Scope 1, 2)

Aim for 100%

Approx. 50%

100%

Above 110%

130%

Creating social value linking with business
Bridgestone contributes to driving carbon neutrality
by reducing its environmental impact throughsimplifying the value chain with BCMA and by
reducing energy Gentan-i (energy consumption perunit) with the shift to Green.

Simplification
Accelerate value creation through the fusion of ENLITEN and BCMA

Link Steady Productivity Improvement andShift to Green & Smart
Linked with BCMA deployment, we drive steady productivity
improvement as well as the shift to Green & Smart to amplify
value and reinforce earning power. In terms of steadyproductivity improvement, we are pursuing streamlined
production based on Genbutsu-Genba (respect for being
on-site). In addition, we accelerate this spiral up of“standardizing craftsperson skills that have been cultivatedon-site over many years by leveraging digital capabilities,
and reinforcing the entire R&D and manufacturing power by
ensuring and improving the standards, and then evolving
the standards as craftspeople enhance their own skills.”
Combining this with automation leveraging smart technology
will accelerate productivity improvement. We concretize
and execute improvement in each plant, aiming to improve
productivity by more than 10% level in 2026, compared
to 2023.
Moreover, when it comes to the shift to Smart, we aim
to connect the entire production process through digitalsensing, AI, and automated control to achieve highly
accurate and efficient R&D and manufacturing. In the
24MBP, we plan to introduce MES (Manufacturing Execution
System) as a digital platform that digitally captures the
production process and to automate the inspection process.
We will also promote technological development, looking
ahead to implementation in the 27MBP. Regarding the shift
to Green, we reduce energy Gentan-i (energy consumption
per unit) continuously.
In each target goal of driving the shift to Green & Smart,
we steadily move forward with the 2030 Long Term
Strategic Aspiration as our North Star.

Enhance value
Creation of
corporate value

Ultimatecustomization
Differentiation

Reinforcement of
earning power

UP

Base technology for
product design“New premium”

Gen 1

Improve product power—Generate customer delight
Elevate all conventional performances, and largely
evolve environmental performance and/or performancethat not only meet the needs & wants of specific market/
customers but further inspires them (= “sharpen edge”)

Value creation(social &customer value)

Gen 2

Expand performance
spider chart“sharpen edge”

FusionDOWN

Base technology
for manufacturing
and R&D

Customization

Module 3

Customize performance
per market/customer

FusionGainingcompetitive
advantage

Simplification

Reduce businesscost &
environmental
impactReduce cost
Simplify operations in R&D and production /Support “ultimate customization”

Simplification

Module 2

Improve efficiency fordevelopment and supply
chain, and reduce costby sharing modules
between products

Module 1

As we roll out BCMA globally, we have discussions with many teammates from each SBU, at
Genbutsu-Genba (being on-site), and promote initiatives on a daily basis by performing the
PDCA cycle. Although regions and positions may differ, our passions for creating good tires
remain the same. We will evolve R&D and manufacturing to a new stage, supporting ENLITEN
to realize ultimate customization while reducing our business costs. Through BCMA, we will
also transform the individual mindset to R&D and manufacturing as well as organizational
culture, which will create good business quality.

Kosuke Yukitake
Executive Director
Global BCMA and Technology Strategy

Bridgestone 3.0 Journey 2024 Integrated Report4924MBP Business Shaping Scenario: Create Good Tires

FeatureGlobal CTO Message: Bringing ENLITEN to the Next Stage with Technology
Innovation and R&D and Manufacturing Transformation

Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extension

EmotionBridgestone’s Technology Innovation

Mastering Road Contact

Bridgestone is taking on the challenge of continuously

Leveraging Bridgestone’s unrivaled knowledge of the

R&D, we aim to achieve both ultimate customization andcreating new value by fusing digital power with strong realworld’s roads, we have further evolved Bridgestone’s uniquebusiness cost reduction. This will create social value andcapability such as extensive experience & knowledge,tire development technology “ULTIMATE EYE”, born from ourcustomer value, leading to reinforce earning power andcreate corporate value.

Smart. By fusing ENLITEN, a base technology for productdesign and BCMA, a base technology for manufacturing andknow-how, data of tires that we have gained from staying

Masato Banno

experience in F1®, enabling to visualize ground contact

close to customers on-site over 90 years of our history.

Senior Vice President andExecutive Officer
Global CTO / Monozukuri

conditions on a variety of road surfaces. Furthermore, by

Especially in our premium tire business as core business,
Bridgestone is promoting technology innovation based on

combining our original tire simulation with vehicle
simulations, we have optimized the tension distribution of

three axes of “master”—“mastering rubber”, “mastering

ply cords, which serve as the framework material for tires,

From Circuit to Street
Mobile Laboratory—Refining ENLITEN Technology
Using Sustainable Global Motorsports

road contact”, and “mastering manufacturing”—with the

Bridgestone’s DNA of “Genbutsu-Genba (respect for being

to achieve uniform ground contact with thinner and lighter

evolution of ENLITEN technology at its core. Whileon-site)” and “being attentive and supportive of customer

tires. This technology is incorporated in the REGNO GR-X III

For Bridgestone, motorsports are our origin as aleveraging new technology from internal and external

problems.”

launched in Japan in February 2024. We will keep evolving

tire manufacturer as well as a “mobile laboratory”. Throughour simulation technology toward mastering road contact

the development of motorsports tires that face extreme

by fusing of strong real and digital.

conditions, we have refined diverse technologies

co-creation, we amplify the generated value and expand
its value to solutions business as growth business or

Mastering Rubber

exploratory business. By doing so, we aim to become abecoming a foundation of our technology innovations ofMastering Manufacturing

company that keeps providing social value and customer

Bridgestone’s strengths in seeing, analyzing, and managing

value as a sustainable solutions company, which is ourrubber lead to the development of innovative materials tovision.

realize thinner and lighter. First of all, we are evolving our

The tire production process consists of two parts: a front-

ENLITEN technology and to reflect it to the development of“seeing” technology so that the structure of rubber andend process of mixing rubber, then preparing andtires for the markets. Most recently, we are driving

molecular can be observed more clearly, by utilizing

processing it into components of the desired dimensions,

technology development to supply motorsports tires

collaborations with external partners. Furthermore, we will

and a back-end process of assembling the processed

equipped with next-generation ENLITEN technology forenhance our “analyzing” technology and rapidly identify

components into the shape of a tire, vulcanizing it, andthe 2025 Bridgestone World Solar Challenge (BWSC).

By creating tires “thinner, lighter, and rounder”, we canmolecular structure of polymer complexes by accumulated

inspecting the finished product. To create tires thinner,expand the performance spider chart. Creating themextensive knowledge about tires and rubber over ourlighter, and rounder, high-precision preparation, processing,“thinner and lighter” enhances environmental

history, enhancement of introduction of state-of-the-art

and assembly are required at each process. As such, theperformance including resource productivity and higher

digital technology in material informatics, which we haveevolution of our manufacturing technology is essential.

rolling resistance, while creating tires “rounder” improves

been leveraging for a long time, and material analysis

driving performance such as handling stability and ride

combined with unique simulation technology, thereby

developed through our AI-implemented tire building

sustainability across the entire value chain of motorsports

comfort. ENLITEN, which Bridgestone positions as a new

linking it to “managing” technology. Evolution of thesesystem, “EXAMATION” which has been in practical use sincetires as a “mobile laboratory.” By applying our technologies

premium, not only responds to diverse needs and wants ofseeing, analyzing, and managing technologies leads to

2016, and linking the data from the front-end and back-end

of “seeing,” “analyzing,” and “managing” rubber, which

diverse markets and customers, but also provides new

more agile development of higher-performance rubber.

processes, all components of a single tire can be precisely

support development of the innovative materials as

In Pursuit of “Thinner, Lighter, and Rounder”—“Ultimate Customization”

In the 21MBP, we not only evolved raw materials such as

today. Moving forward, we will leverage sustainable global
motorsports to promptly demonstrate the next stage of

By utilizing the sensing technology and big data that were

Leading to Drive Sustainability /Accelerating Technology Innovation
We are also taking on the challenge of leading to drive

assembled. This autonomous control technology in thesementioned above, Bridgestone is promoting diversification

pursuing “thinner, lighter, and rounder”. In other words,

polymers, fillers, resins, and chemicals, but we also

processes enables us to create tires that are thinner, lighter,of resources and development of sustainable materials

this is a base technology for product design that sharpens

developed robust, high strength network rubbers by

and rounder, leading to improved product uniformity. Thisutilizing recycled and renewable materials. For example,

edge in performances that further inspires them. However,making full use of compounding technologies andautonomous control technology has already beenin the NTT INDYCAR® SERIES in 2022-2023, we introduced

if we simply create tires thinner and lighter, tires generally

processing techniques to maximize the potential of each

introduced at our plants. We also plan to introduce it at 20

tires made with natural rubber derived from guayule tobecome weak, fragile, and easily distorted, which leads to

raw material mentioned above, thus achieving significant

factories globally during the 24MBP period to drive the shiftsome races. In the 2023 BWSC, we supplied tires that

reducing their performance. ENLITEN technology pursues

improvement in wear performance for products such as

to Smart.

achieved recycled & renewable material ratio to be 63%.

“ultimate customization” that can be tailored to each

TURANZA EV. Furthermore, we are making efforts tomarket and customer, by assembling more robust anddevelop a double network rubber that combines two

flexible materials accurately, which will resolve

different rubber networks, one for robustness and anothercontraventions and expand the performance spider chart.

for flexibility, in a single rubber structure by evolving our

We will continue to evolve ENLITEN technology to the next

“managing” technology. We will complete development of

The starting point for value creation in BCMA is on-site R&D

Furthermore, we will take on the challenge of evolving

stage by further advancing our three technologicalthis double network during the 24MBP, and plan toand manufacturing. We evolve R&D and manufacturing to

Bridgestone’s technology innovation at an even fasterfoundations—mastering rubber, mastering road contact,

implement it into new products in the 27MBP.

the next stage by approaching the essential issues of R&D andpace, from R&D and manufacturing for motorsports tires

manufacturing at Genbutsu-Genba (being on-site), improving

as a starting point.

value and improves the performance spider chart byand mastering manufacturing—while keeping in mind of

Looking ahead to the future, Bridgestone will accelerate

BCMA Supports “Ultimate Customization”
by ENLITEN

the development of sustainable tire technology, whileleading to build a carbon-neutral production structurefrom motorsports tires through co-creation with partners.

productivity, and further promoting the shift to Green &50

Bridgestone 3.0 Journey 2024 Integrated Report51

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 businessEconomyStreamline development and supply chain by sharing modules

activities, including BCMA, shifting to “Green & Smart”,
steady productivity improvements mainly at production
sites linked with “create good tires”, in addition to global

Primary effect: Reduce changeover of materials, parts, and equipment byproduct and streamline development by sharing of modules

BCMA

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

Global Procurement

Overall picture of business cost reduction

costs by a total of approximately 100 B JPY through five

Shift to Green & Smart
Steady on-site productivity improvements

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

Global procurement

Streamline supply chain: Inventory reduction and producing close to where
products are (linked with BCMA)

Global SCM logistics transformation

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

24MBP (2024-2026)

52

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 to

executive committee member, taking part in the Capacity

build foundation of sustainable value creation across the

Taking into account the changing business environment,

Most of our member farmers are conventional and have

Building and Smallholders Working Group, being actively

value chain simultaneously. We are focusing on sustainable

Bridgestone has placed an enhanced focus in procurement

not had an opportunity to learn the relevant skills to

involved in the discussion around GPSNR’s Sharedprocurement of natural rubber, in light of its impact on

activities on the creation of new value, including ESG, in

produce natural rubber, including taking care of young

Responsibility Framework, and also GPSNR’s Assurance

society and business. Natural rubber is a key raw material in

addition to conventional value centered on QCD (Quality,

rubber trees, tapping, coagulating and collecting cup

System. Our active contribution will lead to help thetire manufacturing and is an essential renewable resource

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

lumps, and fighting disease.

industry tackle the vast and complicated issues in ensuring

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.

the training for the farmers to learn such skills. It gives

For example, regarding natural rubber, one of theus understanding in Good Agricultural Practices ofraw 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 andI really appreciate Bridgestone and WWF for providing

natural rubber production.

for sustainability, we are working collaboratively with

With regular, continuous and comprehensive follow-

our suppliers to improve traceability and are actively

up training in efforts to maintain the existence andworking to solve social issues throughout the supply

development of natural rubber, we expect the training

chain, including smallholder farmers. We will continue

will ultimately increase the income and livelihood of

to deepen our cooperation with our suppliers torubber farmers as well as sustainable natural rubber

enhance sustainability.

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

large plantations. Demand for natural rubber has been

(ETRMA)

steadily increasing globally over the years, and we believeon the content of regulations and support smallholders

that sustainable procurement requires increasing yields andwho support production.

, to clarify and compile a common industry view

improving the livelihoods of small farmers while protecting

Enhancing Traceability of Natural Rubber
Supply Chain

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 our

Syoffinal

Masashi Omae

Advisor of APKARKUSI(Kuantan Singingi Rubber
Farmers Association)

Director
Global Procurement Divisionexperience in managing our own natural rubber farms, innatural rubber supply chain’s traceability is unwavering.
Since 2019, we have closely collaborated with suppliers to2023, we provided trainings and technical support tofoster a deep understanding of the significance of supply

smallholders, reaching 5,640 smallholders, and otherchain mapping, particularly down to the smallholder level.

projects organized in support of increasing production

By 2023, we achieved a significant milestone: 34% of our

Capacity Building Projects with WWF

volume as well as income diversification. In order tonatural rubber supply chain was traceable to smallholders
based on supplier self-declarations. By integrating digital

accelerate 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 withandtools, we aim to gain a more comprehensive and accurate
understanding of our supply chain.

Training scene of tapping techniques and medicine application

series of technical training sessions in 2024, ranging from

Global Sustainable Procurement Policy

land preparation and nursery to natural rubber latex coagulum

www.bridgestone.com/responsibilities/social/procurement/pdf/Policy_English.pdf

Global Platform for Sustainable
Natural Rubbercollection 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

GPSNR, a multi-stakeholder organization serves as an

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

effective platform for collaboration, sharing resources and1. 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 diseaseknowledge, and uniting Bridgestone’s efforts in enhancing

control. With the aim of further expanding the impact ofsustainability of the natural rubber industry with other tire

activities, Bridgestone will standardize yield improvement

makers, automakers, smallholders, processors, andtechniques tailored to various farm conditions, train these 15

producers, civil society.

Websitetrainees as instructors, and establish an arrangement toL 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Global Platform for Sustainable Natural Rubber (GPSNR)
https://sustainablenaturalrubber.org/

our goal of using 100% sustainable materials1 by 2050 and
254

Our commitment to the continuous improvement of ourW WF Japan
https://www.wwf.or.jp/eng/European Tyre and Rubber Manufacturers’ Association (ETRMA)
https://www.etrma.org/

Bridgestone donated 60,000 USD to GPSNR to support

disseminate these techniques to more smallholders. Throughinitiatives led by GPSNR for smallholder capacity building

these efforts, we will contribute to the sustainability of

to be conducted in 2023. In addition, Bridgestone plays

natural rubber.

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 are

Global Supply Chain Logistics Transformation:
B-Directbuilding 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.

Through global supply chain logistics transformation,

Based on this premise, Bridgestone EAST contributes to our global business as global premium tire supply sites. In

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 reduce

particular, Japan plays the role of supporting the premium tire business in global as core of manufacturing, producing PS andbusiness cost and create social value and customer value.

In addition to logistics transformation, we are pursuing

TB premium tires and tires for aircraft and mining, which require high technological capability.

This 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 inFocus 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%

downstream 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

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 bypartners, and strengthening our brand power linked withsustainable global motorsports activities.

56

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

ENLITEN ratio
Approx. 20%

introducing new ENLITEN products in 2024, strengthening
our sales channels, especially family channels and strategic

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

2021

2022
21MBP

2023

2024

2025

2026

24MBP

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

solar power panels and advanced LEDs, optimizing energy
use such as air conditioning, and recycling end-of-life tires

Economyand oil at retail stores. We identify services that can provide

Easevalue to our customers through conducting the PDCA cycle
and are gradually expanding to 2,200 equity stores in the
The key to “create good business” is channel power. As part of the new premium tire business model, we are focusing value

U.S. in 2025 and 2026, leading to improve the quality of ourcreation by expanding our retail & service solutions network, which combines family channels and strategic partners, mainly

services.

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.

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.

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

 trengthen Channels which Create Social Value and Customer Value, being Attentive to Customers and Markets: Realize
S
Reinforcement of Earning Powerthrough 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.

UP

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

David Nientimp

New premium
Base technology for
product design

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

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

Enable cost reduction indevelopment and production,and improve agility

Expandtire performance
spider chart“Sharpen Edge”

Fusion Business cost reduction(Reduce cost +environmental impact)

Simplification

DOWN

Increase product power— Generate customer delight —Global Expansion of Our Retail & Service
Solutions Network

Strengthen Japan Retail Business:
In Japan, we are expanding B-Select, a new network of

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 businessNewbrand 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

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

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, andApprox.

conducting EV maintenance training for store technicalstaff, linked with ENLITEN, “New premium in the EV era”. We
are also reinforcing our sustainability efforts by introducing

Network for PS

19,400In the U.S. retail equity stores business, we are taking on
Americas

the challenge of developing a new store format evolving
by the combination of real and digital capabilities,

Approx.

strengthening to provide premium customer experience

9,300

Japan

value and to contribute to sustainability. First, in 2024, weApprox.

conduct an initial trial. We are enhancing digital service

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.

which completes the entire customer experience from

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

proposal 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

Tire monitoring system

New store format in the U.S.

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

Leading to Drive Sustainability

EmotionContribution to the Technological
Development of ENLITEN Generation 2
as a “Mobile Laboratory”

Our motorsports activities are positioned as our “origin” as a tire manufacturer. Our motorsports activities started with our

We aim to transform the entire company by leading toparticipation in the first Japan Grand Prix in 1963, expanded globally through our challenges in a wide range of races such as

drive sustainable value creation starting from sustainable

participation in Formula 1®, and marked our 60 th anniversary in 2023. What we refined through such challenges—our “Passion

global motorsports. We will first drive sustainability acrossLeveraging sustainable global motorsports as a “mobile

for Excellence”, our tire development expertise, monozukuri (R&D and manufacturing) power, brand power and talent—makethe entire value chain of motorsports tires all at once, fromlaboratory”, we will drive development of ENLITEN Gen 2

up the foundation of our premium tire business to this day. The contribution to the brand has been particularly significant,raw material procurement to recycling.

technology, which is scheduled to be launched in the market

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 demonstrating

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.

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

60

Bridgestone 3.0 Journey 2024 Integrated Report6124MBP Business Shaping Scenario

Create New Business Sowing Good Seeds for the Future
The fourth business shaping scenario is to “create new business sowing good seeds for the future”. Bridgestone will sow

Build Bridgestone’s Mobility Ecosystem

Creating social value linking with businessIn solutions business, which is positioned as our growth

The solutions business will create sustainability
value throughout the tire value chain, from“produce and sell” to “use”. In the 24MBP, we willcontribute to reducing CO2 emissions, at the stageof tire use, in truck and bus solutions in North
America and OR/AC solutions, which are positioned
as strategic businesses, while continuing toreinforce retread, which significantly contributes
to improving resource productivity. Through these
activities, we will commit to advancing sustainabletire technologies and solutions that preserve theenvironment for future generations - Ecology inthe Bridgestone E8 Commitment.

good seeds beyond the 24MBP and create new business which generates social value and customer value.

Solutions Business
EnergyBridgestone E8 Commitment

business, we take a challenge on amplifying value at the

Growth Business
Ecology

Efficiency

stage where customers use tires and providing new value
Extensionthat includes solving customer pain points and contributing

Economyto sustainability, in line with the Bridgestone E8
Commitment. We amplify the value of Dan-Totsu products
and use them as the basis for amplifying the trust of society,partners, and customers. By building these relationships oftrust, we will expand solutions provided with both real anddigital by having customers and partners share the data andamplifying its value. Through these efforts, we aim to build
Bridgestone’s mobility ecosystem.

Bridgestone’s Mobility Ecosystem

Reducing CO2 through tires for
EVs and fleet operation optimization

EnergyBridgestone E8 Commitment

Ecology

Maximizing economic value across operations

Maximizing resource productivity
by maximizing retreading cycle

Optimizing fleet operations

Efficiency

Extension
Proposing optimal tire usage
Contributing non-stop mobility

Preventing sudden trouble and traffic
accidents Supporting safe operations
with peace of mind

EconomyData collection from mobility system

Mobility tech business
Dan-Tostu Solutions

Tire Data

Mobility Data

Tire pressure,temperature databy tire monitoring

Vehicle data, vehicle
operation data, othermobility related data

Co-creation“Support” vehicle operation systems/“Strategic business”

society/mobility systems

DigitalCustomer-oriented / Genba on-site “Real” information
Unique analysis algorithm
powered by big data

DATABASE / ALGORITHM
Optimize customer operations
Evolve from tire wear prediction
to durability prediction

62

Ease

(Tire inventory, management of vehicle and maintenance, etc.)

Engineering Chain
Dan-Totsu products

Dan-Totsu network

Dan-Totsu service

Field engineering

Optimal retread

Understanding of society/customer’s business issues, Solutions planning capability, Visualization of concrete effects

Real

Bridgestone 3.0 Journey 2024 Integrated Report63

24MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Accelerate Value Creation Centered on Retread

Mobility Tech Business “Strategic Business”

First of all, the foundation to expand the solutions businesses

Bridgestone expands the solutions business by focusing on

is retread business, which bridges premium tires as Dan-commercial BtoB solutions which have Dan-Totsu products,

Totsu products with solutions. Among them, aviation tiresolid service foundation developed on site and strong realbusiness is the strategic starting point for the retread

such as retread.

business, for which we already provide Dan-Totsu products,

Commercial BtoB solutions mainly consist of three parts;

multiple retread, and tire wear prediction solutions

truck and bus solutions, mining solutions, and aviation

leveraging digital capabilities. We will utilize the expertise

solutions, and we will build as mobility tech business which

acquired here for the TB retread business. In addition tocreates new value as strategic business by the fusion ofstrengthening Dan-Totsu products by improving durability

strong real and digital. In particular, our mining and aviation

and wear resistance as base performance looking ahead ofsolutions leverage our strong real such as Dan-Totsu products

retread, we aim for maximizing the tire value by increasing

utilizing our strong R&D and manufacturing capability andthe number of retread and deepening the linkage with fleet

field engineering being close to Genba (on-site), based on

operation management to use tires safer, longer, better andwhich we have built strong foundations of trust with ourmore efficiently.

customers and partners. By sharing data from them andRetread is the business model which also contributes toanalyzing it with digital capability and building uniquesustainability. With an assumption that each customer willapproximately twice of resource productivity, and canuse Bridgestone tires three times, one new tire with fuelreduce to the approximately half of CO2 emissions.

efficiency that will retread twice, in comparison with three
new tires, can reduce to the half of the amount of raw

algorithms, we will evolve tire wear prediction into tire
durability prediction solutions. We are continuously
reinforcing our efforts to ensure that customers can use
tires safer, longer, better, and more efficiently.

materials at a stage of production, can increase

24MBP - Next stage -Premium tireAC

Dan-Totsu productTo maintainhigh market share

Ensure safety and peace of mind
even under the harsh conditions
such as load, speed and heat/cold

Commercial BtoB solutions

RetreadSolutions

Establish mobility tech business in North America— Especially “Fleetcare” program
Reinforce logistics solutions for the last mile
— an area of demand growth

Co-creation with JAL

Multiple retread

Wear prediction solutions
leveraging tire data & flight data

Strengthen
multiple retread

Be attentive and supportiveof customer problems

through big data analysis

Maximize productivity and economic value of airlines’ operation

Respect forbeing on-site

Truck & bus

Premium Tire

Tire-centric
solutions

Mobility
Solutions“Strategic business”

Leverage know-how

Expand solutions based on new premium “MASTERCORE”
Japan & North America

TB“New premium in circular business era”

Achieve both economy &productivity of fleets andenvironmental performanceat a high dimension
Improve durability and wear resistanceas the base performances for retread

Strengthen
Enhance service
Europe & Asia

Restructure & rebuild

From wear prediction solution
to durability prediction solution

Expand multiple retread

Mining solutions

Build value creation through real x digital — new challenge

Establish
mobilitytech business

Link with themobility solutions

Enable customers to use tires safer, longer, better and more efficiently:
Maximize the value of tires

Value creation by linking with sustainability business model: Carbon neutrality & Circular economy

Strategic starting point to establish
solutions business model including retread
Aviation solutions* TB: Truck & bus tires, AC: Aircraft tires

64

Bridgestone 3.0 Journey 2024 Integrated Report65

24MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Truck and Bus Solutions: Mobility Tech Business in North America—“Fleetcare”

Mining Solutions

In North America, by strengthening linkage between,

Furthermore, we will reinforce solutions for last-miletire durability prediction solutions by building uniquepremium tires, retread, and mobility solutions, we will

logistics in North America, an area of demand growth.

algorithms leveraging AI, with Bridgestone MASTERCORE as

enhance the “Fleetcare” program that provides solutions in

Last-mile logistics, where light trucks move through urban

Dan-Totsu product at the core and focusing on “co-creation”

a package tailored to their pain points through staying

areas, undergoes repeated stop-and-go, causing

based on trust with customers.

closer to customers. By doing so, we will build the mobility

significant burden on tires and premature wear. As

As the core of our mining solutions, Bridgestonetech business.

unexpected tire replacement and maintenances are

MASTERCORE as Dan-Totsu product realizes ultra-highBridgestone has been working to improve the synergy

required frequently, decreasing vehicle utilization and notdurability based on the combination of our new uniquebetween its mobility solutions business, which amplifies

being able to level maintenance cost are some pain points

technologies including steel cord manufactured in-house.

the value of tire data and mobility data, and its premiumthat customers face.

Bridgestone MASTERCORE enables us to provide the optimal

In mining solutions, we take on the challenge of expanding

tire business and other solutions businesses. As a first

We will solve this by offering the “Fleetcare” program

performance customized to each customer’s need and thestep, we began offering the “Fleetcare” program, which

tailored to the unique problems of last-mile logistics, while

operating condition of each vehicle by improving durability

provides premium tires, retread, maintenance services,being attentive to customers on-site (Genbutsu-Genba)

and other desired tire performance without sacrificing

In order to prevent tire damage due to heat, which isand fleet management in one package, at Webfleet

mainly through field engineering. In the second half ofother performances. Based on customer recognition ofa major pain point for mining companies, we offer thesolutions in Europe from 2022, and have accumulated the2024, we plan to launch a new ENLITEN equipped product,

their value, MASTERCORE tires are being used in

optimal maintenance timings and operation routes byexpertise and have tested aiming for establishment of

which has been customized for last-mile logistics withapproximately 90 mines as of the end of 2023. Also at thepredicting tire durability with our unique algorithm

business model.

improved wear resistance performance and case durability

stage of “use” tires, on-site field engineering activities thatleveraging AI. This algorithm is built by shared vehicle

looking ahead of retread. Based on this Dan-Totsu product,

deeply understand customers’ pain points, we have also

information based on trust with customers and data

North America, where we have a strong TB business

we will contribute to maximizing the productivity ofstrengthened our “real” capabilities by expanding theincluding tire temperature, tire pressure, vehicle location

foundation such as Dan-Totsu products, retread, a service

last-mile logistics operations by offering retread, high-network sites for mining solutions to 130, mainly on Otraco,

information and driving speed and history of tire fittings,

network for fleets, and a fleet customer base, while also

quality tire inspection and maintenance services as well as

which was acquired in 2021.

which can be obtained from Bridgestone iTrack, a next-

leveraging the expertise fostered in Europe. By combining

an efficient fleet management leveraging the Azuga’s

By combining such strong “real” capabilities with digital,

generation of tire monitoring system for mining vehicles. In

such strong foundation with Azuga, a digital fleet solutions

platform, as one package to customers. In addition, we

we continue to evolve mining solutions that contribute tothis way, we contribute to maximizing the productivity andprovider acquired in the U.S. in 2021 and with mobility

will maximize the economic value for our customers by

the optimization of mining operations. As a new challenge

economic value of mining operations by reducing tire costs

solutions that offers in collaboration with strategic

adopting a payment scheme based on mileage. We willin the mining solutions, we are strengthening tire wear

and vehicle downtimes. Moreover, we contribute topartners, we will promote value creation with both real

gradually introduce this offering and establish our

prediction and evolving it to tire durability prediction

sustainability by improving resource productivity, sinceand digital.

business foundation during the 24MBP period.

solutions by building unique algorithms leveraging the fusion

using tires safer and longer reduces the number of tiresof extensive experience and knowledge of tires cultivatedused. We began offering this new mining solutions services

In the 24MBP, we will expand the “Fleetcare” program in“New premium in circular business era”

ENLITEN equipment %8 products in 2023
9 products in 2024
Approx. 40 products in 2026

3% in 2023
Approx. 5% in 2024
Approx. 40% in 2026

Premium tire

RFID
Tire data × Mobility data

Maintenanceservice

Service network for fleets

1,200

For truck & bus
Approx.
sites*
in North America*As of the end of 2023
Service solutions network

RealCustomer base of premium tire & tire-centric solutions

In the 24MBP, we contribute to maximizing productivity
and economic value of mining operations as well assustainability, thereby amplifying trust with customers andCreate value end to end by staying close tocustomers and their problems

RetreadRetreadNorte operation) where BHP Group Limited owns in Chile.

Mobility solutions
Fleet management leveraging
vehicle data

High-durability, wear resistance,and low rolling resistance

Launch of products equippedwith ENLITEN (cumulative total)

starting in July 2023 at the Spence copper mine (Pampa

DigitalPremium tire

Fleet
management

on-site (Genbutsu-Genba) and digital such as AI.

expanding business.

• Monitor location information and propose efficient operation& optimal routes• Visualize fuel consumption & CO2 emissions and propose
improvement Manage driver and enhance• safe-driving level (Linked with benefits for vehicle insurance)
North America as of the end of 2023:

370 K connected vehicles
Wear prediction
Evolve todurability prediction+ Collaboration with strategic partners(enhance scale and solutions)

We are promoting solutions initiatives at Genbutsu-Genba (being on-site) that contribute to enhancedsocial and customer value at the Spence mine owned by the BHP Group Limited in Chile. By supporting

Collaboration &sharing know-how

the provision of optimized tire maintenance and ensuring appropriate tire pressure, we have not only

Europe as of the end of 2023:

helped our customers to use their tires safer and longer, but have also contributed to sustainability in

840 K connected vehicles

addition to reducing vehicle downtime. Although there were difficulties to overcome in this project, wewere able to achieve it through thorough discussion and co-creation between a variety of internal

Customer base of mobility solutions

departments and the Spence mine. Moreover, this project gave me many insights regarding on-sitemining operation. Going forward, I will continue to promote solutions initiatives, valuing the trust we
have with customers.

Sven Ermter
Mining Solutions Development & Engineering Director
Bridgestone Mining Solutions Latin America

66

Bridgestone 3.0 Journey 2024 Integrated Report6724MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Aviation Solutions

Build Mobility Ecosystem that Responds to New Mobility

In aviation solutions, the strategic starting point of solutions

Bridgestone E8 Commitment

Extension

Empowerment

business, Bridgestone reinforces multiple retread with
Dan-Totsu product power as an axis, and expand the

In order to respond to new mobility such as EVs and“automated driving technology”, and promote thedeployment of solutions such as tire wear and durability

automated driving, we take on the challenge including

development of tire technology and next-generation ofprediction that combine real and digital capabilities, based

strategic investments through coordination and co-creation

mobility solutions that contribute to improved safety andon co-creation with customers. By doing so, we contribute towith various partners and advance the building of a mobility

productivity of mobility that incorporates automated driving

maximizing productivity & economic value of airlines’

ecosystem.

technology and expertise. By accelerating these efforts, weoperations, as well as sustainability. Premised on safety andAs part of these initiatives, we invested in TIER IV, Inc., awill build a mobility ecosystem that responds to new mobility.

peace of mind above all, aviation tires are required to beleader in open-source automated driving software aimed forable to withstand harsh conditions in areas such as heavy

an automated driving society, in 2022, and have been moving

load, high speed, and a wide range of temperatures fromforward with co-creation in the two areas of “automatedhigh to low. This is therefore a domain where Bridgestone’s

driving technology” and “solutions services that support

core competences in “mastering rubber” and “mastering

aerospace, as well, and in 2023 we received thedriving”. Regarding “automated driving technology”, we areroad contact” can be leveraged to the fullest.

Sustainability Award, which is presented to suppliers that

promoting activities at “B-Mobility”, a mini-test course withinhave made significant achievements in the field of

the BIP (Bridgestone Innovation Park in Kodaira, Tokyo).

By combining multiple retread with such Dan-Totsu
products, we have already established a circular businesssustainability. We continue to expand the deployment ofmodel that maximizes tire value per unit and contributes tosolutions, based on the foundation of the solutions businessstarted demonstration tests concerning the safe driving ofRegarding “solutions services that support driving”, wesustainability, however we now face the challenge of

built up until 2023.

automated vehicles from February 2024, on public roads infurther improving the number of retreading. In efforts to

Shiojiri City, Nagano Prefecture. We are installing “Tirematics,”

meet this challenge, we were able to improve the numbera digital tire management tool that is one of the solutionsof retreading as a result of pursuing both steady

Bridgestone offers, on Japan’s first mass-produced automatedimprovement for working and business quality at on-site

EV buses, which are currently undergoing technologicaland manufacturing DX. This initiative has been shared at theverifications by TIER IV under driving conditions equivalent to

Global TQM Conference as a good example of working &business quality improvement, which is the top priority in“Craftperson skill” /Date regarding tireʼs using condition &Manufacturing datatire inspection data after usage

the 24MBP.

Automated Driving Demonstration Tests at B-Mobility

Level 2, with a view to obtaining Level 4 automated driving
certification. Through this implementation, we aim to verify
the value of solutions services that support the safe andIn addition, we reinforce contribution to sustainability
across the entire value chain, including efforts to realize
carbon neutrality and a circular economy. These efforts

Enhancement of manufacturing accuracy⇒Further improvement of the number of times that can be retreaded

were recognized by Airbus, a pioneer in the domain of

efficient driving of automated vehicles in addressing issues
such as safe driving, expense reduction, extension of driving
distances and improvement of electricity consumption, andreduced downtimes and predictive management. In the
future, we will expand demonstration tests to include
co-creation related to research and development ofAs an important initiative which contributes not only to business, but also to sustainability,
we have been promoting improvements in the number of retreading of aircraft tires. In
the project, we installed sensors in the building process to measure production data foreach tire, and analyzed the data by linking to the inspection data of each returned tire. Bymaking the tacit knowledge of the craftsperson skill into explicit knowledge, and byimproving the accuracy of the parts that have a large impact on the number of retreadingof aircraft tires, we were able to further improve this number. We will contribute tocreating further value for aviation tires from the production standpoint.

Automated Driving Demonstration Tests on Public Roads

A Mobility Ecosystem that Responds to New Mobility

Avayler

Tyrata

CarlQ

REACH

Peregrine.ai

POS platform provider(Europe)

Tire sensor & data
management service
provider(U.S.)

Autonomous
driving related
payment platform
provider(U.S.)

Service provider for fleets(Notify dealer whena vehicle breaks down)(U.S.)

Road safety
solutions provider(Europe)

Retail & service
solutions businessAlso continue exploring co-creation
partners through venture capitals
North America / Europe

Mobility solutions businessAkihiro Ichikawa“TIER IV”

OR/AC Production Technology Department (Winner of the TQM Conference Grand Prix)(Fleet management system)(Retread, repair)Autonomous driving
technology development(Japan)KodiakWrenchYoshi

Chargylize

Bia

Mobile vehicle
maintenanceservice provider(U.S.)

Mobile vehicle
maintenanceservice provider(U.S.)

EV solutions provider(Europe)EV smart charging
solutions provider(Europe)Solutions for EVs

68

Autonomous long-haul trucking
technology development(U.S.)May Mobility
Autonomous driving
technology development(U.S.)

Solutions for autonomous vehicles

Bridgestone 3.0 Journey 2024 Integrated Report6924MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Exploratory Business: Sowing New Seeds
Bridgestone E8 Commitment

EnergyEcology

Ease

Soft-robotics: A New Challenge Leveraging
Bridgestone’s Core Competencies

Empowerment

In the exploratory business, which we have positioned as sowing new seeds for future sustainable growth, we start byproviding social value with sustainability at the core. In the 21MBP, we first focused on exploration of technology. In the 24MBP,In the soft-robotics business, which has become a corporate

we promote the exploration of business models for the next stage, with co-creation as its axis.

venture “Bridgestone Softrobotics Ventures” asopportunities for diverse talent, especially for young talent,

21MBP

24MBP

27MBP

“Sowing new seeds” – Providing social value & sustainability at the core –Exploretechnologies(small & medium scale)

Explore business model – Demonstration /small-scale commercialization phase -No air inflation required “Next-generation tire”

Demonstration phase
Contribute to build Bridgestone’s mobility ecosystem
Various mobility-related tools• Autonomous driving system• Advanced digital sensor development, etc.

Demonstration phase

Explore tocommercialize

to shine and place to demonstrate entrepreneurship, weare exploring business model based on co-creation with awide range of partners to “realize a future where humanand robot co-exist” under the slogan “Soften the Future”.
Soft-robotics is soft robot which utilizes artificial rubber
muscles that leverage the know-how gained from theContribute to evolution of sustainability
business model

development and production of tires and hoses and are• Enhance & diversify renewable resources- Guayule (mainly in the U.S.)• “Renew” tires to raw material- Recycle (Japan and U.S)

robotic hand, incorporating AI software from our partner,

designed to work alongside humans. The “TETOTE” soft
Ascent Robotics Corporation, makes piece-picking possible,
GuayuleDemonstration phaseawarded as the “2023 Good Design Award” by the Japan
Institute of Design Promotion, and the concept model ofNew challenge leveraging corecompetencies

the soft robotic hand won the “iF Gold Award” at theinternationally prestigious “iF Design Award 2023”. In

Soft-robotics

Small-scalecommercialization phasesuccessfully grabbing a variety of objects. “TETOTE” wasaddition, we are taking on new challenges such as presenting
Soft-robotics“umaru,” a prototype of “robots that immerse your body andmove your mind,” at the International Robot Exhibition 2023.
In the 24MBP, we will continue to evolve initiatives for the

Guayule Business: Diversification of Natural
Rubber Sources

Recycle Business: “Renew” Tires to
Raw Material

In the U.S., we are promoting the guayule business to

In the recycle business, which “renews” tires to raw material,

diversify natural rubber sources, a renewable material,

we are promoting co-creation with ENEOS Corporation underthrough co-creation and open innovation with the U.S.

the “Green Innovation Fund Project” of the New Energy andDepartment of Energy, local NGOs, and external partners.

Industrial Technology Development Organization (NEDO), in

Unlike the para rubber tree, the cultivation of which isJapan. We have been promoting elemental technologies

geographically concentrated and is susceptible to diseasenext phase of small-scale commercialization.

“Next-Generation Tire” that doesn’t Need AirFilling: AirFree—Supporting Local Community—

simulation technology and tire technology, we have evolved
it to new material and structure. In 2023, we started ademonstration experiment for ultra small EVs throughAs part of our efforts to sow new seeds in tires, we create

co-creation with Idemitsu Kosan. In addition, from 2024,

value by evolving the AirFree Concept, into “AirFree”, a

we start demonstration experiments on public roads in the“next-generation tire” that doesn’t need air-filling, with avicinity of Bridgestone Innovation Park in Kodaira, Tokyo.

development since 2021, and began recycle pyrolysis tests

view to social implementation. Bridgestone has been

In the future, by pairing AirFree with automated driving,

and climate change, guayule can be grown in arid regions,of end-of-life tires in 2023. During the 24MBP, toward its

uniquely developing the AirFree Concept since 2008, valuingwhere tires become more important, we aim to solve

making it a viable alternative to natural rubber. Cultivating

commercialization we are promoting technology

sustainability such as leveraging materials that can be easily

mobility issues in local communities due to an aging

guayule can also contribute to the greening of these arid

verification and also start studying the construction of a pilot

recycled, with our core competencies – resin material

population, rural depopulation, and limitations onregions. Development of guayule-derived tires, which wasdemonstration plant. In addition, we continue initiatives

technology leveraging “mastering rubber” and the

movement caused by labor shortages.

studied in the past in Firestone, was resumed in earnest in

for recycling in the U.S. and for mining tires as well.

technology of “mastering road contact”. Leveraging digital

2012. In 2022, we supplied race tires made from guayule-

Journey to Develop AirFree

derived natural rubber at the NTT INDYCAR® SERIES, anddemonstrated their performance. We will continue to take

Adapt to recycling

advantage of the NTT INDYCAR® SERIES under a concept
of “mobile laboratory” to explore technologies forcommercialization.
Demonstration machine (Kodaira, Tokyo)
Recovered carbon black (left) andtire-derived oil (right)

70“umaru,” A Prototype of “Robots that Immerse Your Body and Move Your Mind”
at International Robot Exhibition 2023

*O
 btained as a result of work (JPNP21021)
commissioned by the New Energy andIndustrial Technology Development
Organization (NEDO).

2008–
1st generation,“safety and peaceof mind”

Easy-to-recycle materials/retreadable material
that can easily be recycled / Adapted to retread

2013–

technology evolution: new material and structure

2nd generation, improvement in“safetyand peaceof mind” and”Passionfor Excellence"“ride comfort”

2023

3rd generation, “co-creation”
Evolve to “providing social value”“Continue to support the mobility of people and goods”

2024

Start of demonstration experiment on public roads

Respond to various needs for the mobility ofpeople & goods and Take on the challengeof diversifying the mobility to support:• AirFree Concept for bicycles• AirFree Concept for walking-area BEVs
(Used in the Tokyo Olympics and Paralympics Games)

24MBP: Evolve from a concept to“AirFree” looking
ahead to social implementation

Bridgestone 3.0 Journey 2024 Integrated Report7124MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Expanding Our Mission: From Local
Communities to Outer Space
Research and Development of Lunar Rover Tireis the surface of the moon.
In April 2024, we exhibited a second generation tire

Diversified Products Business: Sharply Focus on Areas Where Bridgestone’s Core
Competencies Can Be Leveraged
Bridgestone E8 Commitment

EnergyEcology

Extension“Japan’s Space Industry” pavilion organized by the Japan

In the diversified products business, which Bridgestone sharply

We leveraged the technology cultivated through “AirFree”

Aerospace Exploration Agency (JAXA) at the 39th Spacefocuses on areas where Bridgestone’s core competencies can befor the research and development of lunar rover tires andSymposium, the largest space-related symposium in theleveraged, we aim for the next stage by promoting improvement

developed a new second-generation tire.

U.S., held in Colorado Springs, U.S.. By demonstratingof profitability.

In line with Bridgestone’s fundamental principle of “Tires

Bridgestone’s new challenge and pursuit of excellence tocarry life,” we are working on research and development ofour partners, we gain their empathy to expand our space

the business model that links with original equipment,

lunar rover tires from 2019. Bridgestone, which has known

business network and create opportunities for co-creation
with various partners in Japan and overseas.

replacements, and solutions. To strengthen our premium

the roads around the world and has supported the evolutionof all forms of mobility on Earth, now supports theEaseconcept model for the first time at our booth within the

Currently, a lunar rover equipped with Bridgestone tires is

evolution of space mobility from the ground up to the roads

expected to start operation on the moon after 2031, which isof outer space as the next stage. Bridgestone’s technology

the 100th anniversary of Bridgestone. We are enhancing ourinnovations, which continue to support the evolution oftechnology innovation, and aiming to keep empowering themobility, has been refined in “extreme” environments such

mobility of people and goods with safety and peace of mind

as motorsports. Through this project, we aim to become

from the ground up toward our 100th anniversary.

essential to the future of mobility by taking on the challengeof the new “extreme” environment of human activity, that

Our strength in the premium hydraulic hose business lies instrategy, we reinforce our Dan-Totsu products by leveraging ourcore competencies cultivated through tires, such as “masteringforming hybrid polymer” for managing rubber and othermaterials and “mastering high pressure” that leverages tire

FLEXTRAL, Premium Hydraulic Horses in North America

technology, and also reinforce production and supply structure
through investment for increasing production capacity at Thai
plant. To further strengthen our solutions, we acquired the U.S.
mobile service provider Cline Hose & Hydraulics, LLC (“Cline”
reinforce investment in production) through our U.S. subsidiary,
Bridgestone HosePower, LLC (“BSHL”). By adding Cline’s network

Support mobility in local communities through safety, peace ofmind and sustainable technologies

to our 47 company-owned service locations throughout the U.S.,
we expand our mobile van solutions network in the U.S. andreinforce our solutions business.

Safe and peace of mind mobility in local communities by Empowering Blue
Establishing technologies for social implementation andexploring business models-creating a mobility system
Co-creating with partners: small mobility x autonomous driving systems

Expanding missions from community to space

Providing safety and peace of mind in extreme environments and“supporting space exploration with the dreams of humanity on our shoulders”
Bridgestone, which has known the way of the world and supported the evolution of
all kinds of mobility on Earth contributed to development of human beings byknowing the way of space and supporting the evolution of space mobility

Co-creating with various partners in the space business network
Contributing to international missions ― Promoting technology exploration ―Premium Hydraulic Hoses: Mobile Van Services

Overall Picture of Diversified Products BusinessBusinessCore competence

Support operations in various industries

Technology core masteringforming hybrid polymer

Hydraulic/high performance hose
Rubber track
Support lifestyles thatprioritize safety and peace of mind

Plastic piping
Seismic isolation rubber
Support the shift to EV
from the ground up

Air spring (U.S.)
Support sports life and mobility life thatinspires excitement and spreads joy“Tires Carry Life”: Supporting All Forms of Mobility, from Local Communities toOuter Space, with Safety and Peace of Mind
AirFree is a next-generation tire that does not need air-filling. We are working with members

SportsCycle

Golf ball
Golf club
Power assisted bicycle

Strong brand power
fostered by long history
and track record

Hydraulic hoseseismic isolation rubber

Rubber track

Premium product power(high performance,high added value)
Ability to make proper
technological proposal
based on Genbutsu-Genba
and customer focus

Air spring

Plastic piping

Creating social value linking with businessof various teams across organizational boundaries to establish technologies and explore
business models with a view toward social implementation around 2026. AirFree technology isalso leveraged in tires for lunar terrain vehicles. Expanding our mission from serving the local
community to the extreme environment of outer space, Bridgestone will continue to take onchallenges in order to be essential to the future of mobility.

Narumi Kawada
Global OE Strategy & New Mobility Business Development Department

72

Bridgestone’s seismic isolation rubber contributed to the continued provision of medical care during the 2024 Noto
Peninsula Earthquake. Keiju Medical Center, located in Nanao City, Ishikawa Prefecture, is a core hospital in the Noto
Peninsula region. Of the four buildings that make up the hospital, three are earthquake resistant, and one building, whichis the newest, is seismically isolated using seismic isolation rubber from Bridgestone. While the earthquake-resistantbuildings temporarily lost its capacity to function due to internal equipment damage and toppling of instruments, theseismically isolated building was undamaged and continued to function, allowing the personnel to carry out emergency
surgeries following the earthquake and to support medical services in the local community.

Bridgestone 3.0 Journey 2024 Integrated Report73Building a Foundation for Sustainable Value Creation
Building a Foundation for Sustainable Value Creation

Progress and Targets of Initiatives, Sustainable Value Creation Linked toBusiness Shaping Scenarios

Bridgestone is working to establish its unique Sustainability

foundation of our Sustainability Business Model andBusiness Model by incorporating sustainability into theachieved results that exceeded the goals. In 24MBP, we

corporate strategy and Mid Term Business Plan. Our

promote the integration of sustainability into our business

Sustainability Business Model links our business with thescenario, interconnecting our business activities with

Bridgestone places sustainability at the core of our

promote stable procurement of renewable energy,

realization of carbon neutrality and a circular economy

sustainability initiatives, and building a foundation for

management and business, and accelerate transformation

improve productivity in conjunction with BCMA, andacross the entire value chain, from “produce and sell” andsustainable value creation as we move toward a sustainablewith the aim of achieving sustainable growth as a company

steadily improve energy intensity. This also will lead to“use” of products to their “renewal” to raw materials.

growth stage.

while contributing to the realization of a sustainable

strengthening our earning power.

In 21MBP, we promoted activities that form theProgress of Initiatives

account the increase in CO2 emissions associated with the
expansion of production and sales volume. We willsociety. We are working to establish a Sustainability
Business Model that links our business model with efforts
to achieve a circular economy and carbon neutrality across

Produce and sell—Premium tire businessthe entire value chain. We aim to create both social valueCore businessSupport mobility
with peace ofmind and safety

Inc reasea nd a f C O
for 2 reesta mt

CO2 reduction in mfg. fields

R&D

Procurement

Production

Sales

Tire usage

and Bridgestone. We have also promoted initiatives toward

80%

More thannature positivity since 2023 and have been evolving into a

Result for 2023

60%

more regenerative business model.

Retreadgi al Recycl in���e����
����e�

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and

a
and d
ew
iversify ren

u
so
re
ble

Ma

ti
uc

rc
es

od
pr

ter

���e����
�������e����CO2 reduction effect by resource circulation

CO2 reduction effect by resource circulation

Raw material recycling / External sales

End-of-life tire collection

Ca

s in

Contribution to
CO2 reduction atcustomers’ usage

69％
50%

40%

By 2030, Bridgestone has set clear targets for reducing its

Growth businessthe ratio of

CO2 emissions reduction
Carbon Neutrality

2026

Recycled & renewable material ratio
39% above2026

CO2 emission reduction (Scope 1, 2)
reduce more than 50% (vs 2011)

2050

100% sustainable materials

2050

Carbon neutrality

0%
2019

achieved a 57% reduction, which exceeds the 2030 target.
Result in 2023

Circular Economy

20%

total CO2 emissions (Scopes 1 and 2) by 50% compared withg c o ll e c t i o n

Use—Solutions business70%

Initiatives toward Carbon Neutrality

2011, and to realize carbon neutrality by 2050. In 2023, we

Renew—Recycle business

100%

Goal for 2026

Goal for 2023
intenance / Rep
Ma
air

e
rov
�Imp
ex
p

Vehicle Operation

win-win-win relationship among society, our customers,

CO2 reduction in manufacturing fields

�e�e�e���e

vi
ty
,

2030
Challenge forand customer value through our business and achieve a

Upstream supply chain
tree plantingo ug hth rstated areasa l s de v ao v innioChange in ratio of renewable energy (electricity)
100%(Scope 1, 2) from 2011 level

2021

2022

2023

2024

2025

2026

2030 (FY)

Transition plan for carbon neutrality

57%

Mid Term Business Plan
(2021-2023)

Mid Term Business Plan
(2024-2026)■ Accelerated the introductionof renewable energy■ Stable procurement of renewable energy■ Technology development &verification towards Scope 1 reduction■ Achieved CO2 emission reduction
target level

CO2 emissions
in a business-as-usual scenario

A major contribution to this significant reduction was
the increase in the ratio of renewable energy (electricity).
In each global region, we are promoting the installation ofContinuous improvementof energy efficiency
100%

solar panels and the shift of electricity purchased fromNature Positive*

2020

2026

outside sources to electricity derived from renewableenergy sources. We have achieved a ratio of 69% inFocus on “initiatives for sustainable use of natural rubber & water resources”
which are directly related to our businessrenewable energy use, in comparison to the 2023 target of

Evolving to a regenerative business model

previous year. With a plan to achieve over 70% by 2026, we

2030
targetBring forward
the target year

reduction

Increase of renewableenergy (electricity) ratio

50%

Transition to
low-carbon fuels/
electrification of
manufacturing process50%

Innovation of
manufacturing
process, etc.

Setting next
mid-term target

50%, which was a significant increase from the 26% in thewill work toward the sustainable use of renewable energy.

50%

reduction

2050
2011

2026

2030

Carbonneutrality

In order to achieve carbon neutrality by 2050, it is* It means halting and reversing the loss of biodiversity and natural capital in order to put nature on the path to recovery. The intent behind is to reduce the impact of businessactivities on biodiversity and natural capital, maintain and restore nature’s bounty, and transform socio-economic activities for sustainable use of natural capital.

74

necessary to balance business growth and CO2 emissions
reduction at an even higher level, while taking into

Bridgestone 3.0 Journey 2024 Integrated Report75Building a Foundation for Sustainable Value Creation

Bridgestone is working to contribute to CO2 reduction

Enhancing Initiatives for Sustainable Use of
Natural Rubber

Result in 2023

across the entire value chain, from “produce and sell”, “use”
to their “renewal” to raw materials. Our goal for 2030 is to

Ratio of materials
using recycled andrenewable resources

contribute to the reduction of CO2 emissions (base year:2020) through the entire lifecycle of our products, services,
solutions and recycle by at least five times the amount of

39.6%

Genba.
* See

Sustainable Procurement on the website for details.
https://www.bridgestone.com/responsibilities/social/procurement/

Natural rubber, one of the key materials for tires, is produced
from Para rubber trees. Para rubber tree production isconcentrated in the tropical rainforests of Southeast Asia andis supported by a complex supply chain that includes as many

CO2 emitted by our own production activities (Scope 1 andrubber with our unique approach rooted in Genbutsu-

Sustainable Value Creation Linked to Businessshaping Scenario2). In 2023, the amount of reduction contribution increased

To expand and diversify recycled and renewable materials,

as 6 million smallholder farmers. We believe that building a

to 1.9 times the amount of emissions through rolling

we will strengthen our efforts through motorsports, asustainable supply chain for natural rubber is important fromIn the 24MBP, we promote the integration of sustainability

resistance improvement in premium Dan-Totsu products“mobile laboratory”, such as providing race test tires using

a social and environmental perspective, as well as for the

into the Business Shaping Scenario and build a foundationand proposals for optimal operating routes for mobility

guayule as a raw material for the NTT INDYCAR® SERIES insustainability of our business. We are working withfor sustainable value creation, which also enable us tosolutions such as Webfleet and Azuga. Our 24MBP’s goal is

the United States, and we will gradually expand to tires forsmallholder farmers to improve productivity and achieve

create new values.

to contribute to reduction of CO2 emissions by more thanthe markets.

zero deforestation. Our goal is to partner with a cumulative

three times of our CO2 emissions by 2026.
We are also working to strengthen supplier engagement
to reduce the total amount of Scope 3 emissions. In

100%

Concept Tire1

Over
90%

recognition of this stance, we achieved a place on the “Alist” of CDP Climate Change and the Supplier Engagement in“From Laboratory
to Circuit”

Tire for BWSC2

63%

80%

2023.
70%

Initiatives toward Realization of a
Circular Economy

90%“From Circuit
to Street”

TURANZA EV for the
North America
passenger car market

50%

60%

2030

50%

Aiming for

In order to realize a circular economy, we are promoting
material development such as expanding and diversifying
renewable resources using guayule, improving resource2026

We promote the establishment of a circular businessmodel through initiatives across the value chain, from the

Over

39%

37%

39%

technology developed at our own farms and know-how

growth, and exploratory businesses in the business shaping

effective in disease control. In addition to our efforts as a

scenario. We support sustainable initiatives andcompany, such as tree planting in devastated lands, we arestrengthening our sustainable structure and foundation byalso strengthening collaboration with GPSNR, a global

reinforcing business quality through new & true glocal

platform, WWF, a specialized organization, andportfolio management.

procurement partners to roll out activities that take into

For example, in our core business of premium tires, we

account not only environmental aspects but also social

will improve the various performance required of tires. This

aspects such as human rights. We will continue to take a

includes wear resistance, long life, and lower rollingcomprehensive approach to the sustainable use of naturalresistance, while also improving resource productivity and

40%

2020

2021

2022

2023

2024

2025

2026

2030

(FY)

※1 通常のタイヤ試作プロセスで生産でき、実車走行試験が可能なレベルの性能を有しているタイヤ※2 Bridgestone World Solar Challenge

1 Tire that has achieved production via the standard tire prototyping process, andthat has a level of performance suitable for drive testing
2 Bridgestone World Solar Challenge“produce and sell” and “use” to their “renewal”.
In retreading, we plan to increase the TB retread ratio toand nature positive are linked to value creation in the core,30%

productivity by expanding the retread business, andexploring technologies for tire recycling.

2023

40%

Over

Our efforts toward carbon neutrality, circular economy,

total of 12,000 smallholders by 2026, each utilizing

Earned the ISCC PLUS Certification for our own Natural Rubber Farm (Liberia)
Firestone Liberia’s natural rubber growing and processing facility is
the 16th facility in Bridgestone to receive ISCC PLUS certification*. Thisis the first natural rubber farm in the world to receive ISCC PLUS

Initiatives to Promote Nature Positive World

approximately 50% by 2026, which is linked to thecertification, and was recognized for its efforts to reduce
environmental impact, use resources efficiently, and mitigate climate

expansion of solutions that allows customers to use tires

Becoming Nature positive requires a comprehensivechange. The social aspect of the farm is also recognized for goodsafer, longer, better, and more efficiently.

approach and transformation that encompasses not only

agricultural practices, such as ensuring adequate working conditions,nature conservation, but also diverse perspectives andcompliance with local regulations, and promoting effective

issues such as efficient use of resources, sustainable

management practices to promote continued growth andproduction, and climate change countermeasures. We have

improvement. The farm has been a model case in activities thatincorporated such approach into our Sustainability Businesssupport local communities, such as supporting the rollout of

Toward the realization of a circular economy, Bridgestone

Model and are evolving it into a more circular andtechnology developed on the farm to local smallholder farmers, andhas set mid to long-term targets to achieve a 40% recycled

regenerative approach. In 24MBP, we focus on activities forproviding and supporting medical care and education. The farm has

and renewable material ratio by 2030, and to achieve 100%the sustainable use of natural rubber and water resources

been in operation for more than 90 years and is a valuable asset forsustainable material use by 2050.

that are directly linked to our business.

Bridgestone’s sustainable natural rubber business.

Progress Toward the Shift to
Sustainable Materials

In 2023, we achieved 39.6% of recycled and renewale

With regard to water resources, which are essential formaterial use, exceeding our target of 37%, leading to athe continuation of our business. To ensure fair andreduction of 558,000 tons equivalent of new input raw

sustainable use of water resources, we have developed andmaterials.

implemented water stewardship plans (WSP) that are
tailored to local conditions for each of our production sites* International Sustainability & Carbon Certification (ISCC): A certification system operated by the
ISCC organization for products manufactured using materials derived from biomass and otherEngaging with local communities as part of the on-site audit

recyclable materials or derived from recycled materials. Certification is based on assessments
against criteria for traceability through the supply chain.

located in water stress areas. In 2023, the formulation of
WSP was completed at all 17 targeted sites, and as a resultof the activities, water withdrawal at the targeted sites
decreased by 8.1% from the previous year.
* See

76

Minimizing footprint on the website for details

Bridgestone 3.0 Journey 2024 Integrated Report77Building a Foundation for Sustainable Value Creationenergy intensity through “ultimate customization” byin Scope 3 through efficient real x digital driving and vehicle

expanding ENLITEN, our base technology for productoperation support.

Climate and Nature-related Risk Management and Responses to TCFD and TNFD

design, creating value through BCMA, and shifting to green

Through these efforts, we aim to link business andBridgestone supports the Task Force on Climate-related

foundation for sustainable value creation by strengthening& smart. In this way, we promote tire manufacturing thatsustainability, creating synergistic effects as two wheels,

Financial Disclosures (TCFD). Furthermore, we began

our efforts toward carbon neutrality, realization of a

improves customer value while reducing business costs andand promote the sustainable value creation, while

participating in the Taskforce on Nature-related Financial

circular economy, and nature positivity, while linking themenvironmental impact, thereby contributing to thereinforcing our sustainability in structure and foundation.

Disclosures (TNFD) Forum in March 2022. As the world

to our business.

achievement of our sustainability targets. In the solutions

becomes increasingly concerned about climate change andbusiness, we will increase the ratio of recycled andthe loss of natural capital, there is a growing movement

renewable materials by expanding the TB retread tires

towards a decarbonized society, as exemplified by the Parisbusiness, and also expand our contribution to CO2 reduction

Agreement. Additionally, efforts to achieve a naturepositive world, as outlined in the Kunming-Montreal Global
Biodiversity Framework, are gaining momentum. In thiscontext, we are working to comprehensively assess andContinue to provide social value and customer value
Achieve sustainability targets
Sustainability target in 24MBP: “Produce and sell” “Use” “Renew”

Carbon neutrality:
Further focus on improvement of “quality” including Scope 3 emissions
CO2 emission reduction (Scope 1, 2)
2026

TargetReduce more than

50 %(vs. 2011)

natural capital, as well as the risks and opportunities

Sustainable Value Creation linked withbusiness shaping scenario
Premium tire business:”Produce and sell”

Core business

Create Good Tires

Foundationfor value creation
toward sustainablegrowth stage

Circular economy:

2026

TargetSolutions business:“Use”

Create Good Business

39% above
Exploratory business: “Renew”

Focus on “initiatives for sustainable use of natural
rubber & water resources” which are directly related
to our businessInitiatives for reinforcing structure to cope with global management
risk and reducing future risk
% of suppliers setting SBT-equivalent CO2 reduction target (Scope 3)
Risk monitoring related to human rights and continuous improvement

2026

Target92%(CO2 basis)

Create New Business,
Sowing Good Seeds

Create Good
Business Quality

2023. The following is the status of our response on
recommendations of the Task Force on Climate-related
related Financial Disclosures (TNFD) version v1.0. The

capital, reflecting these in business strategy.
Based on our awareness of these risks and opportunities,
we will enhance sustainable corporate value and build a

Recommended disclosures

Nature positive:

information in line with TNFD recommendations in Octoberfollowing information is also included in the 105th Annual
Securities Report [Approach and Initiatives on Sustainability].

Governance

Growth business

Reinforce support for smallholders of natural rubber

As a TNFD Early Adopter, Bridgestone began disclosing

Financial Disclosures (TCFD) and the Taskforce on Nature-associated with climate change and the loss of natural

Contribution to CO2 reduction (Scope 3)
Contributes to reduce CO2 emissions
by more than 3 times
our own CO2 emissions through light weight,
low rolling resistance, solutions, etc. (2026)

Strengthen the circular business model
Recycled & renewablematerial ratio

manage its dependency and impact on the climate andStatus of Compliance with TCFD and TNFD
Recommended Disclosures

Lay foundation
for the future
growthStatus of Bridgestone’s Response

TCFD

TNFD

Board of Directors’ oversight ofdependencies, impacts, risks andopportunities• The Board of Directors receive and review regular reports on the status of sustainability initiatives, including
achieving carbon neutrality, contributing to a circular economy and progress toward being in harmony with nature.

Management’s role in assessing
and managing dependencies,
impacts, risks and opportunities• The Global EXCO, the highest level of corporate management, approves and manages the progress of mid-longterm strategies, targets and action plans, including achieving carbon neutrality, contributing to a circular economy
and progress toward being in harmony with nature.

New & trueglocal portfolio
management

Human rights policies andengagement activities, andoversight by the Board of
Directors and management, withrespect to Indigenous peoples,
local communities, affected andother stakeholders(TNFD recommended disclosure)• The Global Human Rights Policy and the Global
Sustainable Procurement Policy articulate
Bridgestone’s strong commitment to respect andsupport internationally recognized human rights
principles such as the UN Guiding Principles for
Business and Human Rights. The Global Sustainable
Procurement Policy contains minimum requirements
for suppliers to acquire or use land only by legalmeans in accordance with UN Declaration on the
Rights of Indigenous Peoples, and to follow Free,
Prior, and Informed Consent (FPIC) principles when
acquiring land and assessing any forest development
or creating forest management plans. We promote theimplementation of these policies within Bridgestone,
with suppliers, and across the supply chain.
• Bridgestone collaborates with the World Wildlife Fund(WWF) to study and develop a due diligence process
for ensuring the Company’s supply chain is incompliance with the Global Sustainable Procurement
Policy. On-site ESG audits are conducted for suppliers,
including natural rubber smallholders, using aself-assessment questionnaire developed inconjunction with WWF, and risks are evaluated. This
questionnaire includes inquires on the FPIC.
• Bridgestone establishes a grievance mechanism forthe natural rubber supply chain and publicly discloses
the standard operating procedure and status of eachgrievance. We use the grievance mechanism, among
others, to monitor any potential/actual issues related
to indigenous peoples and local communities’ rights inour supply chain.
• The Global EXCO approves and manages action plans andprogress for sustainability, including respect for humanrights, which are reviewed by the Board of Directors.

78

Bridgestone 3.0 Journey 2024 Integrated Report79Building a Foundation for Sustainable Value Creation

Strategy
Recommended disclosures

Management of Risks and Opportunities
Status of Bridgestone’s Response

TCFD

TNFD

Bridgestone comprehensively assesses and manages its dependency and impact on the climate and natural capital,
as well as the risks and opportunities associated with climate change and the loss of natural capital. Dependencies,
impacts, risks and opportunities have been identified as follows.

Dependencies on climate and natural capital (Note)• Dependency on nature’s provision of water and biomass in the raw material procurement stage as well as climate
and healthy soil maintenance and regulating services provided by ecosystems.

Dependencies, impacts, risks andopportunities over the short-,
medium-, and long-term• Dependency on nature’s provision of water in the tire production stage.

Impacts on climate and natural capital (Note)• Impact of land use in the raw material procurement stage.
• Impact of water resource usage and waste generation in the tire production stage.

Status of Bridgestone’s Response

Recommended disclosures

TCFD

TNFD

Process for identifying, assessing,and prioritizing dependencies,
impacts, risks and opportunities
in direct operations and upstream
and downstream value chain• Bridgestone strives to comprehensively and appropriately identify and address risks and opportunities across its
operation while considering the business scale and characteristics of each Group company. We identify risks andopportunities associated with climate and natural capital by considering dependency and impact throughout thevalue chain based on evaluations from ENCORE by UNEP-WCMC and others and the Business & Biodiversity
Interrelationship Map® released by Japan Business Initiative for Biodiversity (JBIB).

Management process• We are currently assessing ways to improve its management of business strategy risks and opportunities directly
related to the execution of the Mid-Long Term Business Strategy by setting up a dedicated annual risk
management process under the direct leadership of the Global EXCO, while operational risks related to day-today operations are overseen by the Chief Risk Officer (CRO), who is responsible for overall risk management andformulating risk response plans.

Integration into and informing
the organization’s overallrisk management• Identifying potential risks faced by each region and Bridgestone as a whole on an annual basis; clarifying
ownership for those risks not only for us as a whole, but also for each business, SBU and division; andimplementing risk management in an autonomous and continuous manner.

• Impact of greenhouse gas emissions, water resource usage, emissions to air, water and soil and waste generation
throughout the value chain.

Physical risks and opportunities related to climate change and loss of natural capital• Risks of stronger typhoons and increased frequency of flooding and drought, which pose the risk of interrupting
business activities.
• Risks related to the procurement of raw materials as a result of changing rainfall patterns leading to poor
harvesting of natural rubber.
• Risk of lower demand for winter tires due to reduced snowfalls.
• Opportunities to commercialize natural rubber derived from guayule, which grows in arid regions. Risks due topoor harvesting of natural rubber derived from Para rubber trees, which are found predominantly in tropicalregions.

Risks and opportunities related to the transition to a decarbonized society and a society in harmony
with nature
Impact on business model,
value chain, strategy, andfinancial planning• Risk of adverse effects on operating results and financial position, such as limitations on business activities andincreased costs, if R&D expenses required to meet the rapidly changing needs of society and customers do not
produce sufficient results when systems and regulations to combat climate change and loss of natural capital are
introduced (for example, carbon taxes, CO2 emission reduction obligations and emissions trading systems, andsystems and regulations related to low-fuel consumption performance of tires, recycling used tires, water
withdrawal and sustainable natural rubber, etc.).

Metrics and Targets

Metrics used in the assessmentand management of risks andopportunities

Metrics used in the assessmentand management ofdependencies and impacts• Opportunities to commercialize the recycling business resulting from increased regulation around the recycling ofused tires.

Resilience of the organization’s
strategy, taking into considerationdifferent scenarios• Bridgestone assesses risks and opportunities based on multiple climate- and nature-related scenarios. It has
already begun to address those important risks and opportunities identified and will continue to do so on a regularbasis.

Locations applicable to direct
operations, upstream anddownstream• Expand CO2 absorption and fixation throughafforestation of degraded land

• Locations with high integrity
ecosystems and/or areas of decline
in integrity• Areas where biodiversity is of highimportance• Water stress areas• Bridgestone regularly evaluates production sites
located in water stress areas with a risk of declining
water resources in terms of quantity and quality. As ofthe end of 2023, seven sites in India, Indonesia, China
and other countries were located in river basins
assessed as having “extremely high water risk.” A
water stewardship plan has been formulated and isbeing implemented at all these sites based on thewater situation is each location.

TCFD

TNFD

• Establishing targets and regularly monitoring CO2
emissions (CO2 emissions reduction in Scopes 1, 2, and3, and the reduction contribution of CO2 emissions
throughout the lifecycle and value chain of our
products and services) as one of the metrics forassessing and managing climate-related risks andopportunities.

• Bridgestone sets water withdrawal in water stressareas, environmental footprint (amount of hazardous/
non-hazardous waste and landfill, VOC emissions,
SOx/NOx emissions), and size of habitat management
area as metrics in the assessment and managementof nature-related risks, opportunities and impacts andregularly monitors status.

• We evaluates the cost of CO2 emissions (US$100/tCO2)
and the effect of reductions based on internal carbon
pricing in order to assess the risks and opportunities
associated with an investment.
• Setting long term environmental vision (2050 and beyond) and mid- term target (2030) to achieve carbon
neutrality, contribute to a circular economy and achieve being in harmony with nature; evaluating and disclosing
performance every year.

• Opportunities associated with changes in competitive factors due to changes in mobility needs (for example,
increased demand for tires for electric vehicles, increased demand for tires and solutions that help customers
reduce CO2 emissions).

(Note) This refers to the main areas of dependency and impact throughout the value chain of the tire business that were evaluated aseither “very high” or “high” in importance by the UN Environment Programme World Conservation Monitoring Centre (UNEPWCMC) and industrial groups using ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure).

Status of Bridgestone’s Response

Recommended disclosures

Targets and performance inmetrics used in the managementof dependencies, impacts, risks
and opportunities• Setting targets toward 2030 to reduce our absolute CO2 emissions (Scope 1 and 2) by 50% compared with 2011
levels, contribute to global CO2 emissions reductions across the lifecycles and value chain (Scope 3) of our products
and services exceeding five times our operation’s CO2 emissions (Scope 1 and 2) compared with 2020 levels,
increase ratio of recycled and renewable material to 40%, and promote water stewardship plans to reduce water
risks at production bases in water-stressed areas.
• The main results for targets toward 2030 are as follows.
Priority items to be addressed
Establishment
and evolution of
the Sustainability
Business Model

Metrics

2022 results

2023 results

2030 targets

Develop readinesstoward carbon
neutrality

Reduce absolute CO2 emissions(Scopes 1 and 2) comparedwith 2011 levels

31%

57%

50%

Expand circular
economy businessactivities

Ratio of recycled andrenewable materials1

38.4%

39.6%

40%

1. Within total material weight for tire products including tire casing for retreading• Areas where the organization is
likely to have significant potential
dependencies and/or impacts(TNFD recommended disclosure)80

Bridgestone 3.0 Journey 2024 Integrated Report81Financial Strategy
Financial Targets by Area & Business Portfolio● New & True Glocal Portfolio Management Scenario

By focusing more on value creation in line with business shaping scenario based on new & true glocal portfolio management,Core business - Targets Premium Tire Business        Adj. operating
profit margin

Bridgestone plans to achieve global revenue at the level of 4,800 B JPY (approximately 110% versus 2023), adjusted operating

2023 Results
2026 Target

profit at the level of 640 B JPY (approximately 130% versus 2023), and adjusted operating profit margin at the level of 13% (anincrease of approximately 2% versus 2023) by 2026, the final year of the 24MBP.
In terms of adjusted operating profit margin by business portfolio, we plan at the level of 16%, another higher level, bySpecialties

reinforcing earning power and creating “new premium” in our premium tire business as core business. As growth business,

North America

Specialties

the solutions business will improve its portion in our adjusted operating profit by 4% in 2026 and build a foundation forgrowth in the 27MBP. For both solutions business and diversified products business, we plan an adjusted operating profit
margin to be at the level of 8%, which achieves our assumed WACC of 5.5%.

North America

India

India

Japan China
REP

Japan REP
● Overview of Business Portfolio - Adjusted Operating Profit (Amount, Margin and Composition)

Return to a strong Bridgestone capable of adapting to change

Remaining issues& new issues

Core business

Adj. operating
profitAdj. operating
profit margin

400.7
13.7%

Adj. operating profit
portion

82%

B JPY

Adj. operating profit
portion

15%

Core business* Include revenue of retailtires in solutions business

Adj. operating
profitAdj. operating
profit margin

72.2
5.5%

B JPY

Adj. operating
profitAdj. operating
profit margin

480.6 B JPY(Adj. operation profit portion)+4%

Adj. operating
profit margin

11.1%

520
16 %

Over

B JPY
level

level

Adj. operating profit
portion77%

Solutions business
Adj. operating profit
portion19%

Bridgestone’s assumed WACC: 5.5% ≈Adj. operating profit margin: 8.0%

EuropeGrowth businessPremium tire business

Build foundation for growthof the solutions business

Adj. operating profit

EuropeChina2026 —Final year of 24MBP—

Growth businessPremium tire business Growth businessIndonesia

True next stage

2023 —Final year of 21MBP—

Indonesia* Include revenue of retailtires in solutions business

Adj. operating
profitAdj. operating
profit margin

120
8%

B JPY
level

level

INDEX:
2023 = 100

Adj. operating
profit640 B JPY level

110

120

130

140 (%)

Revenue growth rate (2023→2026）*Revenue and Adj. operating profit for Specialties, Japan REP, and Europe include solutions.

Adj. operating
profit margin

Specialties, Japan REP and Europe include solutions in their revenue and adjusted operational profit

13% level

2nd Stage of Rebuilding

foundation. We have already begun business rebuilding
through operational improvement, and will work on

Diversified products business
Adj. operating
profit

13.2

B JPY

Adj. operating
profit margin

Adj. operating profit
portion

4.4 %3%* Calculated from a simple global total of revenues by business segment

Premium Tire Business Core Business
Financial Targets by Area
In North America and Japan REP (replacement) business,

82

Adj. operating profit
portionDiversified products business
Adj. operating
profit Over

25

B JPY
level

Adj. operating
profit margin

8 % level

4%

Achieve Bridgestone’s assumed WACC: 5.5% = AOP over 8%

To achieve more than 10% ROIC on a global basis, we havebusiness rebuilding using PDCA cycle.

begun the second stage of rebuilding in our Europe

Also, TB business aims to become profitable in 2025

business, China business, and Thailand business.

through business rebuilding. As for the OE business, we

As for Europe, where historically challenges have been

are strengthening our focus on premium vehicle model/

deep-rooted, we will change the shape of the Europe

OEMs and prestige OEMs. In solutions business, webusiness, setting the entire Europe business as a “businessdiscontinued consumer solutions last year and concentrate

unit under focused management”. We executed rebuilding

on commercial BtoB solutions including Fleetcare program

such as the closure of Bethune plant in 2021, and willwith limited areas and customers. Retread is also planned

execute rebuilding of retail, TB and retread in the 24MBP.

to become profitable in 2026 due to the improvement of

support earning power with high profit margins at the

We are also strengthening our structure to further focus on

profitability by rebuilding business that includes to streamline

level of 20%.

premium across the entire value chain, from production, tothe production structure with limited areas and customers.

Specialties, including tires for mining and aviation, will

sales and solutions. Regarding production, we will strive to

In addition, we will improve the organizational structurethat are mature areas, we steadily promote to reinforce

on our assumed WACC of 5.5% = ROIC of 5.5% ≈ adjusted

The European and China business are to be rebuilt based

improve fixed costs more efficiently in 3 TB tire plants, by

to execute these measures.

earning power. Particularly in North America, we are driving

operating profit margin of 8%. For the European business,

adjusting its production capability to sales conditions.

the improvement of business quality through expanding

we will improve the adjusted operating profit margin to theWe will further reduce deficit & unprofitable sizes and will

PS premium tire business. Along with two production

sales and increasing market share in the premium segmentlevel of 8%, while for China business, we withdraw the TB

launch Dan-Totsu products. By doing so, sales will be further

plants for PS tires, we strengthen the structure to

by strengthening family channel, reinforcing collaboration

business and focus on PS premium as growth segment,

focused on premium for both PS and TB. The sales structurecomplete “Produce and Sell” domestically in China,

with strategic partners and developing new channel. In

aiming to improve the adjusted operating profit margin.

for wholesales will be simplified and streamlined throughresponding to geopolitical risks.

Japan REP, we are also reinforcing our focus on premium

Growth area, the second home markets representing asorganizational integration, etc. to reduce fixed costs. Retail

China business withdrew from TB business and focus on

As for Thailand, we ended production at our Rangsit

through channel rebuilding, including the shift to retail sites

India and Indonesia, will capture high demand growth andbusiness will become profitable at the latest in 2026,

plant in 2023 and consolidated our production sites.

from wholesale structure.

expand its scale while improving profitability.

through fundamentally reviewing the retail business with

We promote business rebuilding to focus on premium

support from the U.S. team, where it has a strong businesssegment in order to return to Dan-Totsu No. 1 position.

Bridgestone 3.0 Journey 2024 Integrated Report83Financial Strategy

Solutions Business Growth Business
Financial Targets by Area

which has already secured a high profit margin, we are

In solutions business, we are working to strengthen retail &of our solutions business, mainly in retail & service andservice and retread, as well as mining and aviation

retread, where invested in production reinforcement insolutions and mobility solutions (mainly in North America),

the 21MBP.

continuing to reinforce earning power.
In Japan also, we are steadily improving the profitability

Capital Expenditure, Strategic Resource, R&D Expense● Capital Expenditure

Approx.

In North America, where our retail and retread businessIn mining and aviation (specialties) solutions, we plan aalready have a strong foundation, we continue to reinforce

steady growth in both scale and profitability by combining

1,400 B JPY

Ordinary expenditure262

We are continuously strengthening our premium tireon-site technical services with digital power.

expenditure by clarifying firmly the content, effect and56.2

return on the investment.

2021

contribute to the entire business in North America bytech business through expanding its scale, mainly in

480

Approx.

273

243

Approx.

Approx.

269

166.4

Approx.

2023

2024

94.3
2022
21MBP

Approx. 1,000 B JPY
Currency USD
exchange EUR

North America.

expanding its functions as an enabler. In retread business

253.6

Approx.

Approx.

222.8

an enabler that supports premium tire business, will

Moreover, we are continuously strengthening mobility

430

205.7

business as core business, mainly for strategic capitalsolutions of Webfleet and Azuga, and establishing mobility

500

Approx.

317.1

strong real capabilities such as Dan-Totsu product andbusiness quality in stand alone business unit, and will

Approx.

420

our earning power and will achieve growth. Retail & Service,improve its adjusted operating profit margin by improving

Approx.

Strategic expenditure(Approx. 1.4 times than in the 21MBP)

retread, that are currently deficit, to become profitable.

strategic business.

設備投資：戦略＋経常合計（億円）

Capital expenditure total (strategic + ordinary)

While in Europe, we are rebuilding retail & service andwhich will become the mobility tech business, as a

● Capital Expenditures: Strategic + Ordinary total (B JPY)

110 JPY
130 JPY

132 JPY
138 JPY

141 JPY
152 JPY

225

240

165
2025

2026

24MBP

Approx. 1,400 B JPY
135 JPY
149 JPY

130 JPY
143 JPY

130 JPY
143 JPY

Ordinary expenditure: Slight increase vs. 21MBP due to lease renewals for retailstores and warehouses as well as for distribution sites, in addition to the usual
investments in maintenance and renewal of equipment at plants●
New & True Glocal Portfolio Management Scenario

Solutions Business          —Target —Growth business● Strategic Resource

Adj. operating
profit margin

2023 Results
2026 Target

North America
RetreadSpecialties
Azuga
WFS
North America
RetailJapan RetailJapan Solutions

Approx.
Specialties
OR/AC

North America

Total strategic resources

Europe Webfleet
Japan Solutions(incl. retread)North America
RetailJapan
RetailEuropeRetailNorth America Azuga

Bridgestone’s assumed WACC: 5.5% ≈Adj. operating profit margin: 8.0%
EuropeRetreadEurope Retail780 B JPY

• Inject approx. 1.5 times than in the 21MBP: Continue reinforcing investment especiallyin the premium tire business• Carefully selected resource to less than 70% that of the 2030 Long Term Strategic
Aspiration (Approx. 1,200 B JPY)

■ Strategic Resource by Business Portfolio:

continuously strengthen resource related to establishing

Strategic resource that includes strategic capital expenditure

retail & service, retread, mining and aviation, and mobility

and strategic expense, will expand resource allocation totech business. These are the business that was clarified aspremium tire business that has a particularly high return“what to do” in the 21MBP. When timing of actual resource

certainty, from approximately 30% to less than 60% of theinjection comes, we will evaluate their returns and benefits

21MBP. In addition, for the solutions business, we willreasonably and decide for the executions.

戦略リソース金額（億円）● Strategic Resources
Amount (B JPY)

戦略リソースアロケーション● Strategic Resources
Allocation
21MBP

Strategic expenses, etc.

Approx.
Approx.

Strategic capital expenditure

247.2
EuropeRetread

80.8

135.6
79.4

INDEX:
2023 = 100

120

140

160

180

240 (%)

56.2

Revenue growth rate (2023→2026)

2021

Currency
exchange

USD
EUR

84

Approx.

210

Approx.

166.4
94.3
2023

21MBP

132 JPY
138 JPY

50

60

IT infrastructure(21%)

Core businessCore businessPremium tires
161.8 B JPY

Premium tires
Approx. 450 B JPY

IT infrastructure(Slightly below 20%)

(31%)

Approx.

45.2

2022

Approx.

300

Approx.

(Slightly below 60%)

45

139.5

Approx. 520 B JPY
110 JPY
130 JPY

280

24MBP

141 JPY
152 JPY

Approx.

225

Approx.

240

165

2024

2025

2026

24MBP

Approx. 780 B JPY
135 JPY
149 JPY

130 JPY
143 JPY

130 JPY
143 JPY

Diversified products /Exploratory,
Foundations, etc.
(19%)

Diversified products /Exploratory,
Foundations, etc.
(Slightly below 10%)

Solutions total Growth business

Solutions total Growth business150.9 B JPY (29%)– Adapt to ENLITEN /MASTERCORE– Premium tire
production &development– BCMA– Green & Smart– Sustainability

Approx. 130 B JPY (Over 15%)– Retail & service (mainly in the U.S. and Japan)– Retread– Build mobility tech business (incl. enhancing mobility solutions)– OR/AC solutions

Bridgestone 3.0 Journey 2024 Integrated Report85

Financial Strategy■ Strategic Resource by Area:
While continuously injecting approximately 40% of our■ Strategic Resource by Start timing of the Returnof Investment:

Management Focusing on Capital Cost & ROIC

resource to the Americas which supports our revenue andWe will allocate approximately 70% of resources to theUtilization and Our Definition of ROIC

profit, Bridgestone will reinforce the investment in mining

projects where the start timing of the return of investment

and aviation tires that have high profitability mainly in

is short-term and mid-term, and will lay foundation forAlongside ROE as the traditional management metric,

based on ROIC by setting hurdle rates that take into accountJapan where Bridgestone MASTERCORE as Dan-Totsu

future growth, ensuring balance. In addition, we will judge

Bridgestone set ROIC that evaluates return on investment

country and business risk, and discussing them with the

product is developed and produced. This will expand its

the certainty of the return.

and capital efficiency as the most important management

global management team.

Global Investment Executive Meeting Committee. We haveestablished a system to evaluate the certainty of returns

composition ratio approximately four times from 2% in the

Short-term: Premium tires, retail, retread

KPI in the 21MBP, and thus we are promoting management

21MBP to less than 10% in the 24MBP. On the other hand, theMid to long-term: M ainly mobility tech business andfocusing on capital cost. ROIC is a financial metric thatinvestment in Europe where business rebuilding is executed
will limit its composition ratio to half of the 21MBP.

Results and Remaining Issues in
ROIC Improvement Activities

measures how much profit a company generates in relation

exploratory business* Strategic Resource by Start Timing of the Return of Investment:
Short-term: 24MBP, Mid-term: 27MBP, Long-term: 2030 and beyond

to invested capital in its business activities. The basic
formula used by Bridgestone to calculate ROIC is as follows.

As part of the 21MBP, we maintained our ROIC improvement
activities using the ROIC tree, however failed to reach our● Allocation by Area

戦略リソース金額（億円）

Total amount in 21MBP: approx. 520 B JPY
Global foundation area
130 B JPY (25%)

Americas209.8 B JPY

Total amount in 24MBP: approx. 780 B JPY
Global foundation area
(Slightly below 25%)

(40%)

Mining& aviation
12.5 B JPY(2%)

Americas(Slightly
below 40%)

Europe,Middle East,
and Africa
81.3 B JPY(16%)

Asia Pacific44.4 B JPY (8%)

Japan tire(10%)

● R&D Expense• R&D expense for product and manufacturing technology
development: Approximately 400 B JPY(Continuously strengthening our investment at the levelof 3% versus revenue)• Solutions (for building retail and mobility tech businessin the U.S.): Approximately 12 B JPY

We will continue to strengthen R&D for premium tireStart timing of the return of investment
Short-term: 24MBP, Mid-term: 27MBP,
Long-term: 2030 and beyond

In addition, for the solutions business, we are strengthening
R&D initiatives globally, such as planning to develop new
retail format in the U.S. leveraging both real capability anddigital power as well as to develop R&D toward building
mobility tech business.

reinforce the ROIC improvement activities as well as drive
reinforcement of earning power across the entire value
chain. By evaluating performance based on ROIC for eachbusiness and region and implementing the PDCA cycle, weWorking capital: Notes and accounts receivable and other assets + Inventories‒ Notes and accounts payable and other liabilities (FY-end balance)

aim to achieve the level of 10% of our ROIC target, which
remains an issue from the 21MBP.

ROIC Improvement Activities

each management item of the ROIC tree. Regarding grossprofit margin in the adjusted operating profit ratio, we are

To promote the adoption of this ROIC concept at on-site level

introducing Dan-Totsu products, expanding sales of premiumand facilitate the implementation of improvement activities,

tires, creating value by fusing “new premium” ENLITEN and

the Financial Strategy Division at the global headquarters

BCMA, and further reduce deficit and unprofitable areas. In

oversees global activities as the secretariat. In line with this,terms of operating expense ratio, we are continuing to reduce

we are initiating its implementation that values Bridgestone-business costs through global SCM logistics transformation

like Genbutsu-Genba (respect for being on-site) approach,and steady on-site productivity improvement, in addition tothrough sharing improvement case studies with ROIC

thorough cost management. On the other hand, regarding

ambassadors at TQM Conferences. In daily activities, wethe cash conversion cycle, which is a component of invested

R&D expense for solutions

promote autonomous improvement activities at each site bycapital turnover ratio, we are enhancing inventory

R&D expense for product &manufacturing technology development

focusing on both the numerator (profit) and denominator

management to rapidly adapt to demand and sales(asset) and setting management items based on the ROIC

fluctuations. For fixed asset turnover, we are executing thetree. In addition, with a view to establishing a structure for2nd stage of rebuilding and further improving the efficiency

investment and resource allocation that focuses on capitalof existing assets through periodic reviews of land,cost, we have established Global M&A Executive Meeting andbuildings, and strategic shareholdings.

Approx. 126

Approx. 138

Approx. 2

Approx. 124

Approx. 148

Approx. 4

Approx. 134

Approx. 6

Approx. 142● 24MBP Targets Leveraging the ROIC Tree

ROIC (>capital cost)

our “new premium” ENLITEN/Bridgestone MASTERCORE
production technology such as the shift to Green & Smart.

Working capital + Non-current assets(Invested capital)

Adjusted operating proﬁt (after tax): Fixed tax rate of 30%

business with a focus on developing technologies for
products, sustainable global motorsports tires, andglobal ROIC target of 10%. In the 24MBP, we will further

To achieve our goals, we are aiming for improvements in
Mid-term
Slightly
more than35%● Total R&D Expense(B JPY)
R&Dリソース合計（億円）：経費

412 B JPY

ROIC =

Noncurrent assets: Non-current assets excluding deferred tax assets(FY-end balance)

Long-term
Slightly below
10%

Europe,Middle East,
and Africa(Slightly more than5%)
Asia Pacificslightly below 10%

Short-term
Slightly more than 30%

Foundation
25%

Mining& aviation(Slightly below
10%)

Japan tire
37.5 B JPY(7%)

R&D expense:

Allocation by start timing of the return of investment— 24MBP —Adj. operating profit (after tax)

2023

8.7%
2024

2025

130 JPY
143 JPY

10% level(after tax)*1

2023

7.8%

2026

9% level

Improvement
130 JPY
143 JPY

40% level

Operating expense ratio
2023

2026

27.2%

Same as 2023

Deterioration

Cash conversion cycle*2

Invested capital turnover

2026

2023
2023

1.12
times

2026

1.15 times

161 dayslevel

150 days level

Fixed asset turnover2023

1.63 times*1 Fix tax rate of 30%*2 Cash Conversion Cycle (CCC) = Days of inventory outstanding + Days of sales outstanding – Days of payables outstanding
86

2026

2023

38.4%

2026

24MBP: Approx. 412 B JPY
Currency USD 135 JPY
exchange EUR 149 JPY

2026

Gross profit margin

Adj. operating profit

2026

1.65 times level
Bridgestone 3.0 Journey 2024 Integrated Report87Financial Strategy

Message from the Global CFO: Financial Capital Strategy
Enhancing Shareholder Returns through “Reinforcing Earning Power”

For Enhancing Shareholder Returns

Strategic Shareholdings Policy

Bridgestone’s basic policy is to increase dividends in a stable

Bridgestone defines strategic shareholdings as holdings that

Financial Capital Strategy Towards Achieving
the 24MBP

and continuous manner through sustainable enhancement ofcontribute toward increased corporate value of the Company

corporate value, with a target consolidated dividend payout

and are held out of necessity from the Company’s businessratio to be 40%, taking into consideration not only ourstrategy perspective or with the goal of maintaining or

In the 24MBP, Bridgestone will continue to undertake

business performance and financial position for the relevant

strengthening relationships with businesses or collaborative

management focusing on capital cost based on ROIC, ourperiod, but also our mid-term profit forecast, investment

industries. We will not hold strategic shareholdings formost important management indicator. We will strengthenplans, and cash flow. Based on this basic policy, the dividend

reasons outside of this definition. We also confirm theour business quality by driving improvement across theforecast for 2024 is an increase of 10 JPY versus 2023 while

appropriateness of our holdings on an annual basis,

the annual dividend is expected to be 210 JPY per share atincluding an assessment of securities for which shares areminimum, increasing to 250 JPY level per share at minimum

held, number of shares held, holding ratios, and otherby 2026. Towards 2030, we aim to gradually raise thefactors. These assessments are then verified by the Board

dividend payout ratio to 50% as a target. Bridgestone willof Directors. Appropriateness of holding is comprehensively

also flexibly consider share buybacks as an option.

determined by operating divisions involved in business

entire value chain, thereby striving to reinforce our earning
power as “cash in”. Regarding capital allocation as ”cash out”
while prioritizing sustainable growth and corporate value

Naoki Hishinuma
Global CFO
Executive Director, G Financeenhancement through “strategic growth investment”, wewill promote “maintaining an appropriate financial position”

enhancement through “strategic growth investment” toand “enhancing shareholder returns”. Especially forreinforce earning power, focus on value creation, and build

shareholder returns, we aim to continuously increasea sustainable premium brand, while “maintaining an

dividends per share in accordance with growth in adjusted

appropriate financial position” and “enhancing shareholder

operating profit to meet the expectations of our

returns” in accordance with the 2030 Long Term Strategic

With an appropriate financial discipline, we are maintaining

and other relevant factors for each individual stock holding.

stakeholders.

Aspiration as a roadmap.

and ensuring financial soundness, as well as keeping a highShareholdings that are not judged as appropriate based onlevel long-term credit rating.

the results of this verification process are reduced after

Capital Allocation

allocate the strategic resources at the level of approximately

Regarding “strategic growth investment”, we plan to

execution in accordance with the shareholding policy of theMaintaining Financial Soundness

the economic rationale corresponding to the cost of capitalestablishing a dialogue and gaining the understanding of

800 B JPY in the 24MBP, approximately 1.5 times that of theBridgestone regards the interests of our shareholders as an

21MBP, as well as expand resources mainly in the premium

important management priority, and follows a basic policy

tire business, which has high certainty of return. In terms

Company, taking into account a quantitative evaluation ofof strengthening our management base in preparation forof “maintaining an appropriate financial position”, we will

future business developments while working to improve

drive improvements in capital efficiency, aiming for ROE at

Standard & Poor’s (S&P)

A

business results. As for capital allocation, we are

the level of 11% and ROIC at the level of 10% by 2026, while

Rating and Investment Information, Inc. (R&I)

AA+

prioritizing sustainable growth and corporate value

maintaining financial soundness.

Japan Credit Rating Agency, Ltd. (JCR)

AA+

Cumulative CF*
Approx.
1.6 times

Approx.

2,200 B JPY

Strategic
resources

Approx.

Repayment of debt
Approx. 300 B JPY

Shareholder
returns
Approx.
500 B JPY

Ordinary
investments,
etc.
21MBP

24MBP

Cash in: Reinforce earning power* Adjusted, such as excluding strategic OPEX, etc.

Approx.
700 B JPY

Cash out:

A2

shareholdings to net assets (consolidated) was 1.5%,
decreasing year by year.

● Strategic Shareholding Status

Approx.
800 B JPY

1,400 B JPY

the end of 2023, the ratio of shares held by strategicLong-term
RatingRating Agency Name
Moody’s Japan K.K. (Moody’s)● Capital Allocation/ Shareholder Returns

the business partner for the holding in question. As of

As of December 31, 2023

Strategic resources (strategic investments + strategic expenses)

24MBP: Approx. 800 B JPY(Approx. 1.5 times that in the 21MBP)■ Premium tire business: Approx. 500 B JPY■ Solutions business: Approx. 100 B JPY■ IT / Foundations / Diversified products &Exploratory businesses: Approx. 200 B JPY

Maintain an appropriate financial position:
While maintaining financial soundness, balance capital efficiency
Capital efficiency /Capital cost

ROE: 2026 11% level
ROIC: 2026 10% level

Maintain & enhancecredit ratings

2023 Moody’s: A2
S&P: A

Enhance shareholder returns: Increase dividends in a stable andcontinuous manner

政策保有株式の保有状況
150(Number of stocks held)

126
120

120

118

116

110
91

90

80

77

72

69

60

Dividend: With target dividend payout ratio of 40%, continuously increase dividend per share
Dividend per share 2024 dividend forecast: MIN 210 JPY
2026 dividend (24MBP): MIN 250 JPY level

30

Ordinary capital expenditure: 200-300 B JPY/year level throughout the 24MBP period0Enhance strategic resources mainly for the premium tire business with high certainty of return
Enhance shareholder returns by increasing dividends in a stable and continuous manner

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023（FY）

164,015

87,34370,31489,447

60,11049,896

Total amount recorded on balance sheet* (M JPY)
259,754

270,895

238,370

248,917* Total of listed and unlisted shares

88

Bridgestone 3.0 Journey 2024 Integrated Report89Foundation for Sustainable Value Creation

Fostering Trust
Stakeholder Engagement based on Integrated Reporting

Fostering Trust……………………………………………………………………… 90
Stakeholder Engagement based on Integrated Reporting……………… 91

Process for Identifying Sustainability Priorities

and future challenges to management in an ongoing PDCA
cycle. Furthermore, we actively disclose the results of ourThrough dialogue with a diverse range of stakeholders,

activities and share feedback with management including

including institutional investors, NGOs, and employees,

stakeholders’ expectations and their proposals for

Addressing Sustainability Issues………………………………………………… 96

Bridgestone recognizes their expectations and challenges

improvement that are obtained through dialogue based on• Respect for Human Rights……………………………………………………… 96

we face. We promote stakeholder engagement based on

integrated reporting. We incorporate these feedback into the• Natural Rubber Value Chain……………………………………………………… 97

our integrated reporting, and also closely link it to theissue identification and management strategies. This processprocess of prioritizing sustainability issues and integrating

is not only for integrated reporting, but also for the entirethem into business strategy while ensuring alignment withprocess of identifying issues and promoting management

it. As shown in the figure below, the two processes are

strategies, including raising the level of sustainability

Corporate Governance……………………………………………………………… 99

being rotated as two wheels, and continuous improvement

initiatives. (Opportunities for dialogue with stakeholders• Board of Directors and Executive Officers………………………………… 103of both processes is being pursued.

include ESG interviews with institutional investors, dialogue

In Harmony with Communities…………………………………………………… 93

Governance…………………………………………………………………………… 98
Compliance……………………………………………………………………………… 98

Interview with Independent Directors……………………………………… 104

The 26 sustainability issues identified based on thewith NGOs and customers, and ESG small meetings, etc.)

materiality assessment are reorganized based on thebusiness perspective of creating social value and customer

Sustainability priorities are continuously reviewed throughvalue, reviewed by the global managements including thethe PDCA cycle, and the following issues have been

Global CEO, and shared and reported to the Board ofidentified for FY2024.

Directors. We identify issues by sensing social trends such as• Establishment and evolution of the sustainability

laws and regulations, industry and competitor trends, as wellbusiness model

as customer expectations and requests, and by analyzing(Develop readiness toward carbon neutrality, expand

risks, opportunities, and their impacts. We also identify andcircular economy business activities and promote a

confirm gaps between the level of our activities andnature-positive world)

information disclosure and the expectations of society and• Fostering trust with customers, partners, and local

customers by analyzing the results of major external

communities

evaluations/ratings. Based on these activities, we hold• Natural rubber value chain

in-depth discussions with management, incorporate the• Respect for human rights

identified issues into corporate and business strategies, drive• Tire and road wear particles (TRWP)

them forward, and report the progress, results of activities,

Mid-term business plan progress review

ESG meeting / Investor Interview

Implementation
Budget reflection
Business strategy & action plan

Analysis
result review

Feedback

External
evaluations

Identification ofsustainability
priority issues

Stakeholders

TrendsSociety /regulations

Industry /competitors

Customerdemands

Society, investors, shareholders,customers, employees, etc.

Integrated
Reporting

Invitation for
co-creation—
Fostering trust

Level ofour activities
Feedback to
management

Understanding
present
situation

Planning andissuance

Strategic planning

Employee engagement

90

Bridgestone 3.0 Journey 2024 Integrated Report91Fostering Trust

In Harmony with Communities
Dialogue-based IR Activities and Information
Disclosure in a Timely and Appropriate Mannersuggestions and expectations they have gleaned. They are

Bridgestone is working to build trust with society throughthen reflected in discussions and business activities so as toinitiatives in harmony with communities globally. We aim tocreate value for the future.
Bridgestone has defined a vision of providing social value

At Bridgestone there are two parties working together;

Activities Related to Road Safetycontribute to fundamental for sustainable creation and

There were estimated 1.19 million road traffic deaths in

co-creation of social and customer value.

2021*1. As a tire company, Bridgestone recognizes that roadand customer value as a sustainable solutions company

Global Sustainability Strategy Division which integrate

In 2023, Bridgestone has become a member of Business forsafety remains a universal concern. At the same time, it is

toward 2050. To achieve this vision, Bridgestone is moving

management strategies, business activities and corporate

Societal Impact (B4SI) and has embarked to visualize its social

an integral part of mobility system design, providing safety

forward with the implementation of mid-long term

culture to sustainability, and IR department which promote

impact related to “the changes that happen to individuals,

and peace of mind to communities. We believe it canbusiness strategy that place sustainability at the core of

information disclosure and dialogue with analysts andorganizations and the company, in the short or longer-term, as

leverage its strengths and make the greatest contribution.

management. Through quarterly financial results

investors. Through these organizations, Bridgestone isa result of the activity” which is defined in “the framework ofannouncements, we also announce the progress of the Mid

improving dialogue with investors on our approach tothe corporate community investment” by B4SI.

Term Business Plan. We consider it important for the Global

sustainability issues and the management strategies that

CEO to take the stage at such announcements to engage inwill allow us to achieve sustainable growth alongside ourdemonstrate the tangible results of our efforts that lead to(GRSP), an international NPO specializing in road safety, hasdirect dialogue with analysts and investors. We work to

customer and society.

building trust with communities. Also, through these social

helped us in establishing the BRSP and creating thecontribution activities, in line with their purpose and theplaybook, a practical guide for our employees. In 2023, withIn order to generate synergies from its global efforts,
Bridgestone established the Bridgestone Road Safety

We aim to further increase our positive impact andProgram (BRSP) in 2023. The Global Road Safety Partnershipbuild mutual relationships of trust by taking consideration

In addition to enhancing information disclosure in aof the various suggestions obtained through this dialogue

timely and appropriate manner, through our integrated

creation of the eight Bridgestone-like values in thethe cooperation of GRSP, we focused on setting indicators

in our management strategies and IR activities.

report we are also enhancing communication of our unique“Bridgestone E8 Commitment”, we are committed to building

to assess the impact of these activities. We also participatedvalue creation stories that balance sustainability andsafer, and healthier communities and making education morein the Asia Pacific Regional Road Safety Seminar, co-hosted

business. We exchange opinions not only on ESG

accessible and inclusive for current and future generations.

by GRSP and the Asian Development Bank, in the Philippines

In March 2024, we announced the Mid Term Business Plan
(2024-2026) as a hybrid event which was a combination of

In 2023, Bridgestone implemented a total of 1,144 initiatives*1

with key stakeholders to discuss further promotion of roadoffline and online. Global CEO and Global CTO appeared atinvestment perspectives, but also on expectations fromthe presentation and engaged in an open dialogue withinvestors’ perspectives as we grow as a sustainable

in 36 countries, which includes 873 initiatives with externalsafety. During the event, Bridgestone shared our journey ofanalysts on a wide range of strategic and technical interest.

solutions company.

partners*2, with 32,102 employee volunteers*3, and reachedenhancing road safety actions, partnerships, and the case324,198 people*4 from the communities.

study.

In addition to our regular financial results announcements,
we are also expanding opportunities for one-on-one

We will further strengthen information dissemination

dialogue with investors. The Global CEO and Independent

return to a “strong” Bridgestone capable of adapting to

Directors engage in direct dialogue, provide feedback to thechange, move to the “true next stage”, and become a

global management team and the Board of Directors on theresilient “excellent” Bridgestone.

As mentioned above, Bridgestone uses external assessments as a means of understanding society’s demands and expectations,risks and opportunities, and their impact. We use the insights gained through analysis of external assessments and engagement

サステナビリティ分野の外部評価

with analysts to continuously improve our sustainability initiatives and information disclosure.
当社グループのサステナビリティに向けた取り組みは、社外から高い評価を受けています。

implemented in 34 countries, including 67 initiatives withexternal partners*3, involved 2,195 employee volunteers*4,
and reached 103,428 people*5 from the communities. Of

Number of countries
and regions

Total numberof initiatives

Number of initiatives
with external partners

36

1,144

873

●

Employee volunteers●

Community beneficiaries

these, the impact of community benefits was assessed in
5 activities in 5 countries.
*1 Source: WHO “Global Status Report in Road Safety 2023”

32,102
324,198*1 Counting of “initiatives” varies by country or region.
*2 Counting of “partners” varies by country or region.
*3 T he number of volunteers is the total number, including estimates forsome activities.
*4 T he number of people who directly benefited from our activities, which varies
by country or region and only includes those activities for which Bridgestone
has confirmed the status.

• Dow Jones Sustainability World Index
For the second consecutive year,
Bridgestone was selected as aconstituent stock.

*2 Counting of “initiatives” varies by country or region.
*3 Counting of “partners” varies by country or region.
*4 T he number of volunteers is the total number, including estimates for some
activities.
*5 T he number of people who directly benefited from our activities, which varies
by country and region and only include those activities for which we haveconfirmed status.

The counties where road safety activities took place in 2023

● 

(34 countries)• Bridgestone was listed as among“Top 10% S&P Global CSA Score“of Sustainability Yearbook 2024.

• FTSE4Good Index Series
For the sixth consecutive year,
Bridgestone was selected as aconstituent stock.

• CDP
Received the ratings below for its outstanding efforts.
- CDP Climate Change: A- CDP Water Security: A- CDP Supplier Engagement: A

2023 Highlights: Social Contribution

Number of participants

External Assessments in the Sustainability Field• Dow Jones Sustainability Asia PacificIndex
For the 14th consecutive year,
Bridgestone was selected as aconstituent stock.

In 2023, 105 initiatives*2 related to road safety wereregarding a roadmap toward our future growth, which is to• ESG Corporate Ratings by ISS ESG
Bridgestone was recognized witha “Prime” rating.

• MSCI“AAA” rating received from MSCI.

Bridgestone has committed to global good practicethrough strategic alignment to B4SI’s Frameworks andstandards which are applied by the world’s leading
companies. We commend Bridgestone for their active
commitment to social impact excellence underpinnedby their grasp and commitment to
B4SI, and we expect theircontinued and active engagementwith others globally across the
network of leading corporates, toenhance a shared commitment tothe creation of a sustainable
future.

Clodagh Connolly
Global B4SI Director

92

Bridgestone 3.0 Journey 2024 Integrated Report93In Harmony with Communities■B ridgestone Global Road Safety Project (Thailand)■B icycle Safety Workshop (Japan)■ Green Camps Teach “Sicurezza” to Italian Youth (Italy)

In partnership with AIP Foundation*, the program provides

Since 2017, Bridgestone Cycle Co., Ltd., in collaboration

The multi-faceted program, “Sicurezza [security] on theit is important to address health improvement according

solutions through initiatives such as improving road safetywith the local authorities and police departments, hasroad" program in Italy addresses the road safety challenge

to the needs of each country and region, Bridgestoneknowledge and behavior among students and teachers,

been conducting bicycle safety workshop throughout

among young people. The program includes Italian Red

improves the sustainability of communities bycultivating Bridgestone Youth Champions for Road Safety,

Japan. The objective is to promote safe cycling practices

Cross (CRI) Green Camps, which provided full-day

contributing to efforts to improve local health conditions

conducting school zone assessments, promoting

for people of all ages, ranging from preschoolers to senioreducational workshops for 8 to 17-year-olds. With theand to create a culture of healthier lifestyles.

infrastructure modifications, and empowering Bridgestone

citizens, by tailoring the workshops to their respective life

participation of employee volunteers, the camps focused

employees to become road safety advocates.

stages. At schools in Kurume City, BSC conducted

on road safety and sustainability. Participants expressed

communities affected by natural disasters to be part of its

Workshops on bicycle rules and proper helmet usage.

their intention to prioritize vehicle control, condition, andsocial responsibility. We will continue to provide a variety

Output- 75 workshops held, (4,000)+ participated (2023).

tire maintenance when they drive in the future. Theof reconstruction assistance based on disaster conditions

collaborative program with CRI and employee volunteers

and needs in the stricken areas. We sincerely hope for a

Impact- Among the workshops held at schools where impact

will continue in 2024.

swift recovery of the people and areas affected by disaster.

The program began in 2021 and has been expanding
across Thailand.
* AIP Foundation is a NPO that works to improve road safety, primly vulnerable
communities across Asia and Africa.

Output- 242 students and teachers in 4 schools, 10,977 parents andassessments were conducted, 100% of teachers provided

Output- 240 “future drivers” in 8 locations were outreached incommunity members benefited, 16 Road Safety Champions

positive feedback on the students’ increased awareness.

summer camps across Italy.

empowered, 2,000 social media outreach.

- 60% of teachers reported positive feedback on the- Over 5,000 secondary school students learned about

Impact in 2022-2023- iRAP Star Rating* improved from 2 stars to 3 stars

students’ changed behavior.

road safety.

- Road user risk management score, an indicator of the safety■ Project Sarthi (India)

Impact- Fostering Bridgestone team pride and relationship with CRI

of local commutes to school improved from 13.31 to 19.88

Bridgestone India (BSID) has partnered with state-of-the-* International Road Assessment Programme (iRAP) is a registeredcharity dedicated to saving lives by eliminating high risk roads
throughout the world. The Star Rating, developed by iRAP, is anobjective assessment of the level of safety.

art driver training facilities in various states of India toaddress the critical issues faced by the trucking industry,
such as a shortage of drivers and lack of formal training.
Through the initiative called “Project Sarthi” (“sarthi”

Also, as the World Health Organization (WHO) notes that

Additionally, we view the support of regional

Community
https://www.bridgestone.com/responsibilities/social/community/

Impact on Employees
Bridgestone believes employees who participate in social

The partnership with Bridgestone will allow us to reachmore and more people. The Toolkit for Road Safetydrawn up with the technical support of Bridgestone will
help to expand the knowledge of volunteers on
methodologies for road safety education. Thispartnership makes us more prepared to face futureroad safety challenges.

contribution activities will foster a sense of belonging to
Bridgestone and their local community. Employees can
expect to feel empowered and improve their well-being■T hink Before You Drive(Central and South America)

meaning “the one who drives” in Hindi), BSID provides 30

BSAM launched the “Think Before You Drive” program inon professional driving skills but also on soft skills for well-2005. Partnering with universities and government

being and responsible road behaviors. BSID employee

approximately 82% felt a stronger sense of belonging inagencies, BSAM implements the program in various

volunteers also offer training on tire maintenance, safety,

Bridgestone after participating in social contribution

regions. The program aims to address the importance ofand financial literacy. The program aims to develop heavy

activities, and 88% felt a stronger sense of belonging in theroad safety through educational initiatives and materials,

motor vehicle (HMV) skills and create opportunities forcommunity challenges emphasizing seatbelt use, tire

unemployed youth from socio-economically weaker

maintenance, and safe driving practices. In 2022, BSAM

sections of society.

developed “Think Before You Drive - Kids” for children ages
6 to 12, providing road safety tips and promoting safe

Output- 1,775 commercial drivers’ skill upgrade and certification

behavior through online resources, including videos and- 864 HMV drivers complete short-term refresher training

games.

Impact- 66% of trainees found employment with automotive

Other Initiatives

Output- 74,000 students and families in Mexico, Costa Rica,

days of free residential driving training, focusing not only

Edoardo Italia
VP Italian Red Cross and Italian
Representative of the Red Cross’s
Young Volunteers

through these activities. In 2023, as a trial, we conducted
impact assessments on employees in 14 activities in 9
countries. Among the 241 employees assessed,

community. 88% of them perceived positive changes intheir skills applicable to work, attitudes and behavior in life,
and their own well-being.

Impact on Teammate

companies.

Bridgestone creates the eight values of the “Bridgestone

Colombia, and Ecuador materials reached to since 2015

- 92% of drivers trained want to continue HMV driving as

E8 Commitment” through various social contribution- 3,000+ students in 7 schools learned in 2022 and 2023

their profession

activities that respond to the challenges and needs of eachthrough “Think Before You Drive – Kids”

local community. For example, believing that education is

Impact- 100% employee volunteers felt confident in the level of

essential for improving people’s quality of life androad safety education delivered to children.

and accessible education in the local communities in whichdeveloping their professional skills, we support inclusive

241 employees assessed in 14 activities in 9 countries(Results as of December 4th)82%

teammates show positive changes inunderstanding and attachment to theBridgestone

88%

teammates show positive changes inunderstanding and attachment to thecommunity

88%

teammates show positive changes in
attitudes, behavior and/or skills

it operates. With a particular emphasis on primaryeducation and technical and vocational training, we apply
our strengths in tire manufacturing and sales to offer avariety of training programs that foster the next
generation of automotive maintenance professionals.

94

Bridgestone 3.0 Journey 2024 Integrated Report95Addressing Sustainability Issues

Firestone Liberia (FSLB), the largest single natural rubber plantation in West Africa, commits
to contributing towards a sustainable society through continual improvement together with
employees, communities, smallholder farmers, and customers. An integral part of our due
diligence process is to have regular dialogues with stakeholders, including internal and external
communities, to effect solutions in a timely manner based on on-site feedback. Recognizing
opportunities on a national scale regarding access to quality education and to safe drinking
water, FSLB strives to meet necessities in terms of basic living conditions and primary educationand to further support improving living standards through providing farming skill trainings forsmallholders, of our surrounding communities.

As stakeholders and society increasingly hold businesses accountable, Bridgestone proactively integrates sustainability
initiatives into our business models, value chains, management policies, and business strategies. By executing these initiatives,
we strive to generate both social and customer value, building trust with stakeholders.

Respect for Human Rights
Bridgestone fosters an inclusive culture in which all our

from third party experts. Although no human rights

Rhea Cinco

entities and locations adopt and applies ethical labor

violations were identified in any of the risk assessments, weHead of Compliance and Sustainability at Firestone Liberia, LLC

practices, builds trust with employees, and strives tostrive to improve and adhere to human rights standards torespect diversity and human rights.

ensure their proper implementation throughout our

As part of its dedication to being a true global leader in all

Natural Rubber Value Chain

operations

that it does, Bridgestone is committed to respecting humanrights and advancing responsible labor practices throughout
our worldwide operations.
In 2023, we conducted the following two different typesof human rights risk assessments across our own operations:
1) Deep-dive human rights issue-specific and site-specificassessments and 2) Human Rights Risk Assessment Survey(HRRAS) targeting regional headquarters and subsidiaries
across the globe. As for the Deep-dive assessments, wechose the three locations for our 2023 assessment sites; anatural rubber farm in Liberia, tire plant in Indonesia, andheadquarter in Japan based on the holistic risk analysis,
previous assessment results, and human rights risk data

Human Rights
Commitment

Human Rights
Risk Assessment- Development of theBridgestone’s Global Human
Rights Policy- Embedding commitment with
the Implementation Guideline
for the Global Human Rights
Policy throughout Bridgestone’s
own operations- Raising awareness througheducation and learning- Identification of salient issues
and the locations that are
exposed to high risk*- Deep-dive human rights issueand site-specific assessments- Risk monitoring with Human
Rights Risk Assessment
Survey (HRRAS) targeting our
regional headquarters, andsubsidiaries

Accountability

Promoting continuous
reinforcementof the foundationfor value creation- Disclosure of humanrights due diligenceprocess and actions in the
Integrated Report andon website- Communication andpartnership with internal andexternal stakeholders

Based on the Bridgestone’s Global Human Rights
Policy, we implement human rights due diligenceacross our operations while continuously improving andreinforcing our risk management process. Ourcommitment to human rights is realized through theleadership of our top management team and thecollaborative efforts by the Human Rights & Labor
Practices Working Group and teammates around theworld. The essence of our commitment is the “glocal”
approach respecting and engaging with internal andexternal stakeholders, including our rights holders andthird-party human rights experts, as well as our
passion for advancing human rights and responsible
labor practices across our operations.

Enhancement of Sustainability through Due
Diligence of Natural Rubber Suppliers- Implementation of
the site/issue specificmitigation and prevention
measures- Development and executionof the Implementation
Guideline for the Global
Human Rights Policy- Monitoring and evaluating
mitigation and prevention
measuresdevelop a plan to engage with suppliers to reduce risks andmonitor their implementation status throughout its natural

the supply chain and addressing environmental and social

rubber supply chain.

risks. Third-party assessments by

Based on “Guiding Principles on Business and Human Rights” that UN has outlined,
Bridgestone is building a process of human rights due diligence and promoting
its initiatives.

96

Verisk Maplecroft andGrievance Mechanism for Natural Rubber
Supply Chain

EcoVadis help identify and assess these risks.
95% or more of our spend-basis Tier 1 tire material
suppliers will have completed an EcoVadis enhanced ESG
risk assessment by the end of 2024. (As of March 31, 2024,

Bridgestone believes it is fundamental to work with our

97% had done so.) All of natural rubber Tier 1 suppliers willtrusted partners as a team throughout our value chain

have completed an EcoVadis enhanced ESG risk assessment

and co-create value towards society. Especially in theby the end of 2024. (As of March 31, 2024, 94% had done so.)natural rubber industry, which tends to be exposed to the

In addition, we have prioritized targeted suppliers basedrisks of deforestation and child & forced labor, a grievanceon Verisk Maplecroft and EcoVadis scores and conductedmechanism is an effective tool. It allows us to collecton-site ESG audits of those suppliers using a self-

voices of stakeholders around our operations, help us toassessment questionnaire developed in collaboration withengage with our suppliers, and enable us to understandWWF Japan. From 2022 to 2023, we completed a total of 54

where our potential risks and opportunities are, to improve

on-site ESG audits of our Tier 1 natural rubber processing

sustainability practices across our value-chain. We therefore

Nicolas Van Den Steen

facilities. In the audits in 2023, no human rights as well as

set up a grievance mechanism for the natural rubber

President of Human Rights and Labor
Practices Working Groupsignificant environmental impacts were identified.

supply chain and publicly disclose and update grievance

However, there is room for improvement such as in ways tolist quarterly.

Since 2022, Bridgestone has been addressing grievances within its natural rubber supply chain
by implementing a robust grievance mechanism. With the support of Earthworm Foundation,
Bridgestone leverages local insights, tools and technical expertise to identify and addressenvironmental & social issues. Engaging directly with suppliers represents a significant step towards
more transparency, enabling the natural rubber value chains to contribute positively to theprosperity of communities and ecosystems. The approach also favors dialogue and collaboration
with local stakeholders so as to prevent future grievances. Bridgestone is now in the process of
spreading awareness of the grievance mechanism among the grievance mechanism with key supply
chain partners and expanding its scope to encompass other raw materials of which Bridgestone's
tires are composed.

Bridgestone is also implementing a portfolio of digital tools
in its natural rubber farm in Liberia to enable data integrity
and visibility of the natural rubber farm profile together
with other environmental and social parameters for bothour own farm as well as smallholder operations.
This evolution is not only a reflection of our dedication tosustainability and transparency but also aligns seamlessly
with our journey towards compliance with the EUDR.

*Sites that could be exposed to higher human rights risks due to geographic,
political, social, industrial and operational factors.

species. Therefore, we will continuously offer support andBridgestone has been enhancing its ESG due diligence in■ Liberia’s ISCC Certification
Actions and
Mitigationcollect information on the supply chain and endangered

Jeanne Delor
Member Manager at Earthworm Foundation,
Project Leader for BridgestoneGlobal Human Rights Policy
www.bridgestone.com/responsibilities/social/human_rights/pdf/global_human_rights_policy.pdf

Verisk Maplecroft

EcoVadis

Earthworm Foundation

https://www.maplecroft.com/

https://ecovadis.com/

https://www.earthworm.org/

Bridgestone 3.0 Journey 2024 Integrated Report97GovernanceCompliance
Bridgestone’s commitment to ethics, compliance andintegrity helps it continuously achieve its mission of Serving
Society with Superior Quality and supports its goal ofbuilding an effective ethics and compliance program.
The success of any effective ethics and complianceprogram depends on the ongoing and proactive organizationwide engagement of leaders, managers and supervisors, allworking to help build and sustain a culture of compliance.
Board oversight, supervision and engagement have been
hallmarks of Bridgestone’s ethics and compliance programfor many years. Additionally, periodic reports on the progressand status of the ethics and compliance program are provided
to the Compliance Committee reporting to the Board of
Directors, and periodic reports are also provided to the Boardof Directors in each region. Bridgestone periodically report
the progress and status to the respective corporate bodies
that oversee their implementation, such as the board of
directors and Compliance Committee of each major company.
In working toward becoming a sustainable solutions
company, the policies and other global and regional ethics
and compliance programs we develop must continue toadapt and evolve in accordance with the changing
environment and regulatory landscapes. For example, onJanuary 1, 2024, BSEMEA launched two updated policies: theGifts & Entertainment Policy (including rules on travel
involving third parties) and the Conflicts of Interest Policy.
Bridgestone’s global ethics and compliance program
consists of a blend of global and regionally based initiatives.
We aim to balance global consistency with the flexibility
needed to effectively address regional and even local risks
that can vary significantly due to the wide range of
operations we are involved in and the variety of geographic,
legal and regulatory environments in which we operate.
Compliance / Fair competition
https://www.bridgestone.com/responsibilitie

Corporate Governanceemployees and non-employees through the corporatewebsite and is publicly referenced in various documents,
including the Code of Conduct. BridgeLine is a 24/7 hotline
available in all regions and in multiple languages.
Regardless of how an allegation of misconduct is raised,each report is thoroughly investigated by Bridgestone’s
Compliance team or other relevant departments dependingon the subject matter. Each region has detailed investigation
procedures and protocols to help ensure the quality andconsistency of investigations. Each region has developed andtracks certain data and metrics to identify risk areas and trends
as well as assess the effectiveness of internal investigations.
The results are provided regularly to the Board of Directors ofeach significant subsidiary around the world.
In 2023, a total of 1,443 BridgeLine reports and questions
were received worldwide. A breakdown of the categories ofreports and questions received globally appears below. All
confirmed violations resulted in appropriate corrective andmitigating action, including disciplinary measures up to andincluding termination. There were no significant confirmed
reports in 2023 for the areas of corruption and antitrust/competition.
Bridgestone actively monitors and analyzes data relating
to its internal investigations to continuously improve its
ethics and compliance level.
BridgeLine

Basic Approach

Transformation of Corporate GovernanceIn 2020, Bridgestone Corporation, under the mission of

Bridgestone has made continuous efforts to strengthen its“Serving Society with Superior Quality,” defined its vision of

corporate governance structure, including the introduction“Toward 2050, Bridgestone continues to provide socialof Independent Directors in 2010, the establishment ofvalue and customer value as a sustainable solutions

advisory committees to the board between 2013 and 2014,

company.” As part of its efforts to achieve this vision, weand the adoption of the “Company with Nominating

have been managing its business in accordance with its

Committee, etc.” model in 2016. As part of this ongoing

Mid-long Term Business Strategy. We are continuing toprocess, the Articles of Incorporation were amended in 2021

improve its corporate governance to strengthen internal

to abolish the full-time position of Chairman and to select acontrols and evolve as a sustainable solutions company.

Chairperson of the Board of Directors from among theBridgestone has been using Japan’s Corporate Governance
Code (the Code) as a tool for evaluating its governancepolicies and systems and has implemented all the generalprinciples, principles and supplementary principles set forthin the Code. The Governance Committee, an advisory98

below for an overview of the transformation of
Bridgestone’s corporate governance to date.

recommendations regarding matters specified in the Code.
Furthermore, the Company publishes a report (in Japaneseand English) on these matters, which is disclosed on thecorporate website following the approval of the Board of
Directors.
Corporate Governancehttps://www.bridgestone.com/corporate/governance/

https://www.bridgestone.com/responsibilities/governance/compliance/bridgeline/

Accounting and
Auditing Matters 1%
Misuse, Misappropriation of
Corporate Assets 2%

HR, Diversity andWorkplace Respect
60%

Environment,
Health & Safety 7%

Ongoing Process of Optimization of Governance in Response to
Evolving Company Strategies and Changing Social Demands
Theme

Other Policy
Violation 17%

Business Integrity
13%

Monitoring and Responding

Promotion of Ethics and Compliance Programs

We seeks to maintain an environment in which employees
feel comfortable speaking up and knowing that they will belistened to.
A wide variety of resources including the BridgeLine areavailable to all Bridgestone Group employees and stakeholders
to encourage them to speak up with questions or concerns.
We have established the BridgeLine reporting systems(operated by third party specialists) to allow all Group
employees and any Bridgestone stakeholder (including, forexample, contractors, suppliers, consumers and customers)
to confidentially and anonymously report suspectedcriminal conduct; violations of the Code of Conduct ;violations of other company policies, or the law; or otherethical concerns and questions. BridgeLine is accessible to

To further reinforce the compliance due diligence programand mitigate anti-bribery risks, Bridgestone started thereview of all high-risk intermediaries in 2023 with the aimof ensuring that proper controls are in place when engaging
with these intermediaries. As of December 31, 2023, 87% ofBridgestone’s high-risk intermediaries have been reviewed.
As our business and operations continue to evolve, we will
also look at how to adapt its ethics and compliance programs
to ensure that they remain relevant, adequately resourced
and work effectively in practice. We plan to do this throughself-assessments and by engaging one or more third parties
to help it assess its ethics and compliance programs in 2024.

Year

Oversight

Management and Operational Execution2024

https://www.bridgestone.com/responsibilities/code/

https://www.bridgestone.com/responsibilities/anti_bribery/

to enhance execution and supervisory functions. Please see

committee to the Board of Directors, deliberates and makes

The Code of ConductGlobal Anti-Bribery Policy

Independent Directors at a meeting of the Board of Directors

Creation of agovernance structure forthe realization of the“Sustainable Solutions
Company” strategy

Creation of agovernance structure forthe realization of a truly“global company”

Introduce new global management
structure (incl. BRIDGESTONE EAST & WEST
regional structure)2023

Approve new global management structure

2022

Introduce independent Chair-driven
process of Board agenda setting

2021

Abolish the full-time position of“Chairperson” Nominate Board Chairfrom independent directors

Commence Mid Term Business Plan (2021-2023)

2020

Separate roles of CEO and Chairman of
the Board

Commence Mid-Long Term Business Strategy

2018

Restructuring of the Board’s authority andenhanced oversight of the Board(Authority delegation to executive management)

2016

Adopt new corporate structure “Company
with Nominating Committee, etc.”～2015

Establish discretionary board advisory The Bridgestone Essence
committees (Governance, Nomination, • Safety Mission Statement
Compensation & Compliance)• Quality Mission Statement
Introduce independent members of
the Board of Directors

Commence Mid Term Business Plan (2024-2026)

Bridgestone
E8 Commitment

Commence “2030 Long Term Strategic
Aspiration” Introduce Global CEO & 2 Joint
Global COOs system in Bridgestone Corp.

Establish “Global Sustainable Procurement
Policy,” “Global Human Rights Policy” and“Code of Conduct”

The Bridgestone
Essence Framework• Environmental Mission Statement

Establish SBU organization structure
Introduce Global Executive Committee
Meeting Introduce Global CEO & Global
COO in Bridgestone Corp.

Bridgestone 3.0 Journey 2024 Integrated Report99GovernanceCorporate Governance System

Approach to the Composition of the Board of Directors and the Roles Particularly Expected of Directors

In March 2016, Bridgestone transitioned to the “Company with

Bridgestone East (mainly Japan and Asia), with each region to

The Nominating Committee, in selecting candidates fordiscussion and deliberation. To ensure the objectivity ofNominating Committee, etc.” model of corporate governance.

be headed by a Joint Global COO.

nomination to the board, seeks to maintain diversity and,external directors, the Company has established its own

at the same time, overall balance in board composition with

Independence Standard. Based on the above approach, theIn both regions, multiple SBUs have been established andIndependent Directors. Appropriate and proactive work is also

divided into smaller business areas, bringing management

respect to knowledge, experience and skills. Committee

Company’s Board of Directors has an overall balanced

conducted by the Nominating Committee, Audit Committee

closer to the field and enabling deeper understanding of issues.

members consider business experience and expertise in acomposition with diverse perspectives to oversee the

Furthermore, to ensure consistency between global andwide range of disciplines and fields for Independent Director

successful execution of the Mid-Long Term Business Strategy
to enhance corporate value.

regional strategies and to maximize effectiveness andcandidates. Additionally, it is the policy of the Company thatand directors. Furthermore, to strengthen corporate

efficiency, we have established global integration functions

the board should be of sufficient size to enable adequate

governance transparency, the Governance Committee andand appointed a Global CAO, Global CDXO, and Global CTO.

balances by debating and discussing management issues

and Compliance Committee), supervises operating divisions via

including corporate strategy and sustainability from a global

regular progress reports and information sharing to create aperspective, which enhances the transparency of decision-

corporate governance system that aims to realize the Mid-Longmaking. This information is also regularly reported to theTerm Business Strategy. The Board of Directors and the Audit

Board of Directors in a timely manner in order to aid in their

Committee are composed of a majority of Independentdeliberations. Collectively, these actions ensure that we

Shuichi ISHIBASHI

Representative Executive Officer

4

○

○

○

Directors and the Nominating Committee, Compensation

maintain an effective supervisory function.

Masahiro HIGASHI

Representative Executive Officer

3

○

○

○

Please see below for the Company’s corporate governance

Akira MATSUDAInternal / Non-executive

1○

structure put in place to realize its Mid-Long Term Businessof Independent Directors.
As of January 2024, under leadership of the Global CEO,

Strategy.

Tsuyoshi YOSHIMIInternal / Non-executive

5○

Bridgestone’s business will be divided into two regions,

Yuri OKINA

Outside / Independent

10

Bridgestone West (mainly the U.S. and Europe) andYukari KOBAYASHI

Outside / Independent

1○

Yojiro SHIBA

Outside / Independent

6○

Corporate Governance Structure

Yoko SUZUKI

Outside / Independent

6○

Scott Trevor DAVIS

Outside / Independent

13

Stakeholders: Shareholders, employees, partners, clients, society, etc.

Global CEO**Global EXCO†1

Executive Ofﬁcers andCorporate Ofﬁcers, etc. (12)(incl. 6 non-Japanese nationals)** Representative
Executive Ofﬁcers (2)* Executive Ofﬁcers (2)(incl. 1 non-Japanese national)

Joint Global COO**

Joint Global COO*

BRIDGESTONE EAST CEO (**)

BRIDESTONE WEST CEO (*)

Global CAO (**)†2 Global CDXO (*)†3
Global CTO (*)†4 etc.
(Global integration)

Internal Auditing Divisions
Management Areas(1) BRIDGESTONE EAST CEO for Japan & Asia, (2) BRIDGESTONE WEST CEO for Americas & Europe.
†1 Global EXCO: Global Executive Committee †2 Global CAO: Global Chief Administration Ofﬁcer†3 Global CDXO: Global Chief Digital Transformation Ofﬁcer †4 Global CTO: Global Chief Technology Ofﬁcer

Non-executive
Directors/
Outside andIndependent
Directors

○

○

○

○

○

○

○

○

○

Legal Affairs andRisk Management

Committee) and advisory committees (Governance Committee

Name

Finance and Accounting

Global Experience

Group. It serves to strengthen our system of checks andCommittee and advisory committees are composed entirely

100

Capital, Human Resources
and Organizational Strategy(Nominating Committee, Audit Committee, and Compensation

Executive
Officers/

Compensation Committee

as the highest-level management executive body in our

Audit Committee

The Board of Directors, including these statutory committees●

Sustainability

In addition, we have established the Global Executive
Committee (Global EXCO), comprised mainly of these officers,

bodies to the Board of Directors.

Tenure as Director (Years)

Compliance Committee have been established as advisory

○

○

○
○

○

○

○

○

○

○

Outside / Independent

1

Kenichi MASUDA

Outside / Independent

8

○

○

Kenzo YAMAMOTO

Outside / Independent

8

○

○

○

○

○

○

○

○
○

○
○

Yasuhiro NAKAJIMA

Technologies andInnovation

oversees the performance of the Company’s executive officers

Nominating Committee

and Compensation Committee. The Board of Directors

Management Experienceat Other Companies

The Board of Directors consists of 12 directors, including eight

○

○

○

○

○

○

○

Notes: T enure as of March 26, 2024.
Outside and Independent Directors are listed in order of the Japanese syllabary.
Circles indicate the top three priorities in the expected areas of contribution as a director.
* Proportion of Independent Directors: 66.7% (8 of 12)* Proportion of Women Directors: 25% (3 of 12)

Evaluating the Effectiveness of the Board of Directors
Bridgestone has continuously improved its governance

Board of Director evaluations are conducted through astructure, as described in the Transformation of Corporate

one-year cycle that includes evaluation, issue identification,

Governance section above. Building upon these enhancements,

and implementation, leading to continuous improvement of

the scope of the evaluation of Board effectiveness has been

corporate governance.

taken to include not only the Board of Directors but also the

FY2023 evaluations confirmed that, as the result of a range

statutory and advisory committees. Evaluation of the entireof factors, the Board of Directors engaged in transparent

scope of board functions includes the review of all board

decision-making and effectively demonstrated its oversightdeliberations and their outcomes and self-evaluations offunctions. These factors included timely reports fromall directors.

operating divisions for deliberation at Board meetings,

Bridgestone 3.0 Journey 2024 Integrated Report101Governance

Board of Directors and Executive Officers As of March 2024
productive exchanges of opinions among Board members,

Mid-Long Term Business Strategy and 2030 Long Term Strategic

reports and discussions on specific themes following

Aspiration, and ensured even more productive discussions

proposals from Independent Directors, active discussions

between directors and operating divisions on the formulation

utilizing the diverse perspectives of Independent Directors,of a new Mid Term Business Plan (2024–2026) as well as when

and the creation of globally conscious frameworks withindeliberating and making decisions on individual matters.
We have also changed the way we formulate proposals forstatutory and advisory committees.
Regarding the status of business execution, based on reports

the Board of Directors. The Chairperson of the Board ofof discussions at Global EXCO meetings, the Global CEO and

Directors, who is an Independent Director, now takes theRepresentative Executive Officer shared information with theinitiative in formulating proposals based on proposals from

Board of Directors in a timely and appropriate manner.

other Independent Directors, resulting in lively discussions

The above led to the confirmation of Mid Term Business Plan

with even greater objectivity and transparency.

(2021–2023) outcomes in light of the already formulated●

Effectiveness Evaluation Process
Evaluation(Jan.–Mar.)

Governanceevaluation phase

Board of Directors

Shuichi ISHIBASHI

Masahiro HIGASHI

Akira MATSUDA

Tsuyoshi YOSHIMI

Scott Trevor Davis

Yuri OKINA

Member of the Board
Global CEO and
Representative Executive
OfficerMember of the Board
Joint Global COO and
Representative Executive
OfficerMember of the Board
Member of the Audit
Committee

Member of the Board
Member of the Audit
Committee

Member of the Board*
Chairperson of the Board of
Directors
Member of the Nominating
Committee
Member of the Compensation
Committee
Chairperson of the GovernanceCommittee

Member of the Board*
Chairperson of theCompensation Committee
Member of the Nominating
Committee

Kenichi MASUDA

Kenzo YAMAMOTO

Yojiro SHIBA

Yoko SUZUKI

Yukari KOBAYASHI

Yasuhiro NAKAJIMA

Member of the Board*
Chairperson of theNominating Committee
Member of theCompensation Committee
Chairperson of theCompliance Committee

Member of the Board*
Member of the Nominating
Committee
Member of theCompensation Committee

Member of the Board*
Chairperson of the Audit
Committee

Member of the Board*
Member of the Audit
Committee

Member of the Board*
Member of the Audit
Committee

Member of the Board*
Member of the Audit
Committee

Issue Identification (Apr., May)

• Director interviews• Governance Committee discusses issues aimed at improving
effectiveness of Board of Directors, report given to
Board of Directors, report discussed at Board of Directors,
issues identified• Governance Committee discusses evaluation results, report
given to Board of Directors, report discussed and managed
by Board of Directors• Statutory committees decide on issues, report given to
Board of Directors

Implementation (May Onwards)

Implementationphase• Board of Directors and statutory committees implement initiatives
for identified issues

Compensation System for Executive Officers
Remuneration for each position and individual director andexecutive officer is determined by the Compensation
Committee, which is composed solely of Independent
Directors. In its deliberations the committee considers changes
in the business environment, the opinions of shareholders andinvestors, along with information from third-party humanresources and compensation consultants with extensive global
experience and knowledge.
The Company has designed a compensation system based(1) Establishment of the “Bridgestone E8 Commitment” andcommunication with stakeholders both inside andoutside of the Company(2) Investment in and development of people to increase
added value and job satisfaction(3) Carbon neutrality, including reduction of CO2 emissions

For details on the compensation system, please refer to “(4)Remuneration for Members of the Board and Executive

cultivate superior talent”, “support a competitive

Officers” in the Annual Securities Report (105th Fiscal Period).

remuneration level”, “provide motivation for the execution ofshareholder value”. From fiscal year 2022, the Company

Executive Officers(4) C ircular economy, including increasing the ratio ofrecycled and renewable resourceson the following principles of remuneration: “attract andbusiness strategies”, and “provide motivation for enhancing* Independent Director

Remuneration for Members of the Board and Executive Officers

Shuichi ISHIBASHI

Masahiro HIGASHI

Paolo Ferrari

Masato BANNO

Global CEO and
Representative Executive
Officer(*)

Representative Executive
Officer
Joint Global COO •Bridgestone East CEO
Global CAO (Global Chief
Administration Officer)
BSAPIC*1 Chair
Chairman and Representative
Board Member ofBridgestone Tire Solution
Japan Co., Ltd.(*)

Executive Officer
Joint Global COO •Bridgestone West CEO
Global CDXO (Global Chief
Digital Transformation
Officer)
BSAM*2 Executive Chair of
the Board & Group President
BSEMEA*3 Supervisory Board
Chair(*)

Senior Vice President andExecutive Officer
Global CTO (Global Chief
Technology Officer)
Responsible for Monozukuri (*)

www.bridgestone.co.jp/ir/library/securities/pdf/105.pdf

adopted the mid- to long term incentives aimed at promoting
sustainability and transformation initiatives, and achieving
Mid-Long Term Business Strategy. The Compensation
Committee has set the following four goals and evaluates
the achievement.

(*) Global Executive Committee Member*1 BSAPIC: Asia Paciﬁc, India, and China*2 BSAM: Americas*3 BSEMEA: Europe, Middle East, and Africa

102

Bridgestone 3.0 Journey 2024 Integrated Report103FeatureInterview with Independent Directors:

Effective Governance for Sustainable Value Creation

the policies and procedures to build and maintain strongin understanding internal terminology, technical terms, or

systems that can protect customer information, resist

who to consult with, which could lead to a problem of not

cyberattacks, along with the contingency plans for response

fully being able to absorb internal information. The presencein the event of cyber incidents.

of non-executive directors with an internal background who

Global CEO has repeatedly emphasized the importance ofunderstand and support both standpoints, adds breadth andadapting to change in terms of both potential value and risk.

depth to the oversight by outside directors and enables

In discussions with the Board, and investor meetings, hethem to function more efficiently and effectively. We also

openly acknowledges any areas where Bridgestone falls

expect the executives to understand the supervisory

short and clearly articulates his plans to address them. The

perspective of the Board and approach their duties

Board mirrors this stance. We aim to be clear about what we

accordingly as directors.

do and do not expect. We make clear that our concern is toWith regard to the appointment of Independent Directors,

see whether or not Bridgestone has the strategy, the ability

we value diversity. By bringing together individuals withand the strength to accomplish what it has set out to do anddifferent areas of expertise, knowledge, experience and tenure,keep going.

etc., the same issues can be evaluated from multiple
perspectives, allowing for more substantive questions andScott Trevor Davis

Yuri OKINA

Kenichi MASUDA

Member of the Board
Chairperson of the Board of Directors
Member of the Nominating Committee
Member of the Compensation Committee
Chairperson of the Governance Committee

Member of the Board
Chairperson of the Compensation Committee
Member of the Nominating Committee

Member of the Board
Chairperson of the Nominating Committee
Member of the Compensation Committee
Chairperson of the Compliance Committee

The Board of Directors’ Portfolio and Agenda
Setting Process to Enhance Board Effectivenessvigorous discussion. It also creates awareness and synergy bylistening to opinions from different perspectives. As an attorney
myself, I have a legal background. I have learned a lot from—Based on the Board’s awareness of challenges, is there

the different angles and perspectives of different areas ofanything you keep in mind to ensure effective discussions at

expertise, such as corporate management, finance, andBoard meetings?

economics, and from hearing opinions from different angles.

Davis: Setting the appropriate agenda is critical to ensuring

complementing each other’s strengths and functioning as a

Diversity does not mean being fragmented, but rather

Discussions for the 24MBP and the Board’s
Awareness of Challenges

the quality of discussions at Board meetings. Because of thiscohesive whole, enabling the Board of Directors to operate

I regularly seek input from all Board members in selecting

as a unified team. We believe that this is the most important

our stakeholders with particular attention to theand scheduling items for deliberation and in reviewing theand best way for the Board of Directors to fulfill its expected—What kind of discussions took place within the Board ofdevelopment and sourcing of sustainable raw materials. In

effectiveness of previous reports and deliberations. It is alsosupervisory role and strive for excellence.

Directors in formulating the 24MBP? Please also tell us what

addition to improving the productivity of current sources ofimportant for the Chair to ensure that information andyou try to be mindful of during discussions.

natural rubber, Bridgestone is also promoting thepresentations of proposals from the executive fully address—It seems that the discussions at the Board are being

development of alternative crops such as guayule. The

the concerns and interests of the Independent Directors,

prepared and have progressed quite diligently, but wereDavis: In formulating the 24MBP the Board set the agenda

expectation of both the Board and investors here is thatwhile at the same time ensuring that the Independent

there instances where a proposal was rejected by the Board?

several years in advance and engaged in thorough discussions,

Bridgestone will achieve sustainability through innovation.

Directors have all the information they require on each

including those taking place within the Global EXCO.

Sustainably sourced raw materials often incur higher costs.

agenda item and are able to maintain a shared awareness of

Masuda: Since Independent Directors represent shareholders

Bridgestone’s strategic direction is to transform from being a

We know that the market demand is not for sustainability as

the expectations and concerns of the Board as a whole.

and external stakeholders, we need to use our respective

world-leading tire company into becoming a global sustainablea luxury. This is not what we mean by premium. Bridgestone

One way we do this is by holding information sharing

solutions provider. In order to enable this seemingly subtle

is committed to pursuing both sustainability and economic

meetings for non-executive directors. To gain more concreteCompany, and frankly express our opinions when we deembut significant qualitative shift in strategy, a wide range ofrationality. This means the provision of solutions that

information and deeper insight of critical issues such as

it necessary to change course from an external stakeholder’sissues must be considered in order to make clear what mustcombine high-value services with premium performancecybersecurity, investment in talent and advanced humanperspective. For example, in a recent case, the shareholder

and must not be done in order to achieve a business defined

products that are both produced sustainably and promoteresources and business quality innovation, we often seek

return policy was rejected once by the Board of Directors

by the keywords of both “premium” and “sustainable.”sustainability for our customers. The word used at

explanations from personnel working at Genba withand approved at the next Board meeting after further

Bridgestone to refer to this is Dan-Totsu.

firsthand knowledge and experience of these issues. These

discussions. The policy had been thoroughly developed by thesessions allow the Independent Directors to understandexecutive team and presented to the Board of Directors. The

Due to Bridgestone’s wide global presence and long value
chain, requirements at each level vary greatly, from raw

Since technological superiority is essential to providing

expertise, understand as much as possible about thematerial such as natural rubber, through development,sustainable premium solutions centered on Dan-Totsu

each other’s perspectives and concerns as experts in their

Board sincerely considered a proposal that there might be a

production, retail and up to value-added solutions such as

products, the Board often invites the heads of R&D to discuss

respective fields and therefore further promote insightful

more appropriate way of wording it that would not cause

retreading and maintenance. The Board’s primary concern isplans for product and production technologies in order toand comprehensive discussions that make full use of themisunderstanding even when read by external stakeholders.

whether Bridgestone has the necessary strengths to adapt tofully explore the future potential of major new innovations

Board’s own portfolio of skills, knowledge and experience.

This is a good example of how a suggestion from the Boardchange. We need to clearly understand what this means andsuch as ENLITEN and other manufacturing technologies that

requires in terms of sustainability and premium quality and toenable cost advantages.

was taken seriously and led to improvements.
Masuda: We believe that a diverse and balanced portfolio ofmembers is important for the Board of Directors to perform

Davis: Global CEO Ishibashi is a leader who takes governanceTo this end, we often seek the input from divisional andinvolved in Bridgestone’s premium solutions strategy.

its functions effectively. As a company with a Nominating

very seriously. He respects having an Independent Director as

department heads and from personnel working on the front

One key issue is the challenge of creating and maintaining

Committee, etc., the Board of Directors oversees thethe Board’s Chair and the role of the Board itself and its

lines of business (“Genba” in Japanese) to further enhance

the infrastructure to enable solutions that utilize information

execution of business operations. However, if the Board

importance. As Chair I have access to the Global CEO and we

our understanding of where Bridgestone currently stands.

both efficiently and securely. The Board actively monitors

consists solely of outside directors, there may be challenges

maintain a monthly one-on-one meeting where I can discuss

be prepared to make the changes and investments necessary.

104

For example, with sustainability one key concern iswhether we are meeting the demands and expectations ofAt the same time the Board is keenly aware of the issues

Bridgestone 3.0 Journey 2024 Integrated Report105Interview with Independent Directors

the content of upcoming Board reports and deliberations and—Please tell us about your intention to include the E8 andraise any concerns. At these meetings Mr. Ishibashi often

investment in human resources in the sustainability

remarks that if he can gain the agreement and understanding

incentives, and what you emphasize in the design of aof the Board on some proposal, he can discuss it with any

compensation system.

stakeholder outside the Company with confidence knowingthat it has already passed a rigorous and objective multi-

Okina: The most fundamental idea behind the compensation

stakeholder review.

of top executive management is that it should be an incentive

As with the shareholder return policy, the Board members
are clearly aware of their roles as the representatives of

to enhance corporate value.
The Global CEO says that results are everything, and I

external stakeholders and are committed to voicing any issues

believe he thinks that way in terms of responsibility rather

or concerns on their behalf without reservation. This approachthan compensation. Therefore, we focused on designing aof the Board and the CEO combined enables Board meetings tocompensation structure that emphasizes results, where theserve as a forum where business strategy can be discussed in amore effort you put in, the higher the rewards curve rises.

manner which combines the perspectives of both the

From the beginning, we have incorporated into ourFurthermore, various trials have been initiated, including

leadership positions, but also those in charge of businesscorporation itself as a business and that of its investors andremuneration design the ability to reflect actual earnings inefforts to foster the development of the next generation ofdivisions and those who work at Genba, I hope that I can beother stakeholders in order to make better decisions.

the short term, and the degree of achievement of ROIC, ROE,

leaders and encourage a culture of innovation and challenge.

of service to them.

and other targets in the medium to long term.

We are hopeful that the effects of these initiatives will be

Genbutsu-Genba, Bridgestone DNA, and the
Design of Compensation System

Promoting sustainability and transformation may notreflected in employee engagement.

and contributes to society in that field, including through our

immediately contribute to profits in the short term, but it isextremely important for the enhancement of corporate value

On top of that, Bridgestone manufactures and sells tires,
which are essential products that support the mobility society,Expectations for Bridgestonesolutions business. I am motivated partly by my own love ofcars, but also by my desire to support the efforts of everyone—In the 24MBP business shaping scenario, there is also anin the medium to long term. To support and encourage theseemphasis on Genbutsu-Genba (improvement of operational

diligent efforts that sow the seeds for the future, we allocate—Please tell us what you feel are the Company’s strengths

who works hard at the Company that plays such an importantcapabilities). What kind of discussions were held behind this?

half of the long-term incentives as sustainability incentives.

and what motivates you to support the Company.

role in our society.

Specifically, we have included E8 establishment and value
Davis: Bridgestone’s business is supported by proud andcreation, investment in and development of human resources,

Okina: Having served as an outside director at several

Davis: As an Independent Director, I believe that it ishighly skilled employees who represent the best of theand on the environmental side, a commitment to naturecompanies, including a trading company and a shipping

important not to get attached to the people or the Company.

industry both globally and in Japan. The Board is therefore

positivity and a circular economy. Sustainability incentives

company, I feel that our company demonstrates solid

Instead of personal feelings or empathy, I try to think in terms

very concerned with how effectively the executive istend to focus on environmental aspects such as

management practices with detailed mid-term business plansof why it is that I can entrust important projects to theseconveying its vision and plans for change with the workforce,

decarbonization, but in addition to these, we also emphasize

and meticulous management including the control of direct

people and what makes them exceptional.

and whether the people who support the actual products

investment in human resources and the establishment of thematerial loss ratios. Above all, I am fascinated by theand workplaces, the employees who are essential forE8 as a compass for transformation.

manufacturing industry’s ability to innovate through Genba

and I recognize that they are not just buying Bridgestone’s

capabilities, technology, and manufacturing, and it is appealing

stock, but rather investing in Bridgestone’s growth story of

successfully achieving any change, are aware of their role

Another characteristic and important aspect of ourI often engage in discussions with institutional investors,

and engaged in its accomplishment. The Board appreciates

sustainability incentives is to have the executives thoroughlythat through such capabilities, we can support people’s lives.

premium and sustainable solutions. I am always thinking

the fact that the Global CEO and two Joint Global COOs

consider and commit to what they are going to accomplish in

I visited various factories and was shown the manufacturing

about what I can do as Chair of the Board to ensure theactively hold town hall meetings with employees in order tothe next year in advance. We discuss and decide based on theand inspection processes firsthand, and was pleasantly

realization of this story.

promote strategic alignment and engagement. In recognition

proposals, have them self-evaluate the results on an annual

surprised by many aspects revealing that our company isof the importance of this form of internal communication andbasis, and make decisions through the Compensation

supported by the power of Genba, both in terms of technology

been achieved but I am constantly impressed by Bridgestone’s

engagement, objective measures of employee engagement

Committee. We place importance not only on the progress ofand passion. I listened with great interest to discussions about

relentless efforts to make up for whatever may be lacking, tolevels have been included as criteria for executive evaluation

indicators but also on the extent to which the committed

intellectual property at Board meetings. I think the Company’s

capitalize on what is good and to constantly continue toand remuneration.

efforts have been achieved as the target of evaluation.

intellectual property strategy is unique, such as turning ainnovate and improve. My motivation is based on my desire

collection of technologies like ENLITEN into a business model.

to see where Bridgestone’s story of premium and sustainable

Okina: As Dr. Davis mentioned, the Company engages in—How do you see the progress of the initiatives for human

There is a wide range of possibilities for diverse value creation insolutions for mobility can lead us.

manufacturing operations, so we also focus on job satisfaction

capital and women’s empowerment during the 21MBP?

pursuit of business sustainability, such as promoting theof employees at Genba and sense of fulfillment in their

Bridgestone continues to set ambitious goals. Not all havecombination of manufacturing and DX and the use of AI. It will

work. In particular, corporate culture changes through the

Okina: I feel that the Company is particularly enthusiastic

be very interesting to see how tires will evolve, as mobility

widespread adoption of the Bridgestone E8 Commitment

about improving the workplace environment at factories

undergoes significant changes in the future.

(“E8”), investment in human resources, and employee

and other Genba, and creating fulfilling workplaces.

engagement are incorporated into the sustainability

Although the representation of women in managerial

Masuda: The profession of an attorney involves providing

incentives for executive compensation and evaluated bypositions is still low, the Company’s approach in addressing

support to those who seek advice and assistance when they

the Compensation Committee.

women-specific health issues, such as introducing the use of

are in need. When I see someone working hard, it is natural

FemTech is progressive and highly appreciated, given thatfor me to want to help and assist them in any way possible.

health management is generally focused on mental health

Although it is not limited to our company, when I see theand male-centered health issues like metabolic syndrome.

dedication and hard work of not only those who are inInterviewer

Naoyuki Sone
Sustainability Communication
Strategy Department(This is an English translation of the original dialogue which was conducted in Japanese.)

106

Bridgestone 3.0 Journey 2024 Integrated Report107Financial Data
Fiscal years ended December 31

Consolidated Operating Results1
Revenue
Adjusted operating profit
Adjusted operating profit margin
Profit attributable to owners of parent
Profit attributable to owners of parent margin

Consolidated Operating Results by Segment1,3Japan
Revenue
Adjusted operating profit
Adjusted operating profit margin
China, Asia-Pacific (CAP)4
Revenue
Adjusted operating profit
Adjusted operating profit margin
Americas
Revenue
Adjusted operating profit
Adjusted operating profit margin
Europe, Russia, Middle East, India and Africa (EMIA)5
Revenue
Adjusted operating profit
Adjusted operating profit margin

Financial Position1
Total assets
Total liabilities
Total equity
Ratio of equity attributable to owners of parent to total assets6
ROIC7
ROE8

Cash Flows
Cash flows from operating activities
Cash flows from investing activities
Free cash flow10
Capital Expenditures, Depreciation andAmortization, and R&D Expenses1
Capital expenditures
Depreciation and amortization
Ratio of depreciation and amortization to revenue
R&D expenses
Ratio of R&D expenses to revenue
Cash Dividends
Dividend per share

IFRS

Japanese GAAP2

2013

2014

3,568.0
438.1
12.3
202.0
5.7

2015

3,673.9
478.0
13.0
300.5
8.2

2016

3,790.2
517.2
13.6
284.2
7.5

2017

3,337.0
449.5
13.5
265.5
8.0

2018

3,643.4
419.0
11.5
288.2
7.9

2019

3,650.1
402.7
11.0
291.6
8.0

2020

3,507.2
343.1
9.8
240.1
6.8

2021

2,994.5
222.9
7.4
-23.3
-0.8

2014

2015

3,246.1
394.3
12.1
394.0
12.1

Unit

2023

4,110.1
482.6
11.7
300.4
7.3

4,313.8
480.6
11.1
331.3
7.7

Billion JPY
Billion JPY%
Billion JPY%

IFRSJapanese GAAP1

2013

2022

2016

2017

2018

2019

2020

2021

2022

Unit

2023

1,270.3
219.5
17.3

1,264.9
210.1
16.6

1,187.8
197.4
16.6

1,080.6
150.6
13.9

1,147.8
160.2
14.0

1,170.5
153.5
13.1

918.1
108.8
11.9

762.6
64.6
8.5

873.0
117.0
13.4

1,036.3
140.3
13.5

1,242.4
206.5
16.6

Billion JPY
Billion JPY
%

862.7
80.2
9.3

841.5
66.8
7.9

838.0
68.2
8.1

621.7
62.5
10.1

648.8
62.9
9.7

633.8
56.7
9.0

462.8
36.2
7.8

394.6
24.6
6.2

386.9
42.0
10.9

457.0
39.9
8.7

461.1
41.6
9.0

Billion JPY
Billion JPY％

1,651.9156.4
9.5

1,768.1
180.2
10.2

1,941.6
222.5
11.5

1,645.3
203.1
12.3

1,776.5
187.5
10.6

1,758.2
177.8
10.1

1,661.7
184.3
11.1

1,407.9139.9
9.9

1,454.6
190.6
13.1

1,988.0251.2
12.6

2,080.0
212.0
10.2

Billion JPY
Billion JPY
％

423.3
2.0
0.5

439.2
20.3
4.6

421.7
21.4
5.1

477.1
27.7
5.8

559.8
13.6
2.4

596.1
11.0
1.9

640.1
15.0
2.3

564.3
-17.6
-3.1

693.9
42.1
6.1

870.0
66.4
7.6

908.5
25.1
2.8

Billion JPY
Billion JPY%

IFRSJapanese GAAP9

2013

2014

3,577.0
1,714.0
1,862.9
50.5
—
12.7

2015

3,960.9
1,814.2
2,146.6
52.4
—
15.5

2016

3,795.8
1,513.8
2,282.0
58.2
—
13.3

2017

3,716.0
1,370.1
2,345.8
61.5
—
11.8

2018

3,959.0
1,556.3
2,402.7
59.2
—
12.5

2019

3,840.2
1,404.1
2,436.1
61.9
—
12.4

2020

4,277.0
1,874.5
2,402.5
54.9
7.4
10.0

2021

4,189.3
1,994.0
2,195.3
51.3
5.5
-1.0

2014

471.7
-265.2
206.5

2015

428.6
-305.6
122.9

2016

553.9
-233.3
320.5

2017

444.5
-178.2
266.2

2018

418.1
-200.7
217.3

2019

360.9
-243.0
117.8

2020

505.0
-261.9
243.2

2021

526.9
-155.4
371.6

2014

274.9
176.1
4.9
89.0
2.5

2013

2015

296.3
188.3
5.1
94.1
2.6

2014
57

2016

253.5
202.3
5.3
94.9
2.5

2015
100

2017

194.1
188.0
5.6
95.4
2.9

2016
130

4,961.8
1,949.4
3,012.5
59.8
9.4
10.9

5,427.8
2,022.4
3,405.4
61.8
8.7
10.4

Billion JPY
Billion JPY
Billion JPY
%
%
%

2022

281.5
131.7
413.2

Unit

2023

268.5
-338.0-69.5

661.4-297.7363.7

Billion JPY
Billion JPY
Billion JPY

IFRSJapanese GAAP2013

4,574.9
1,899.5
2,675.4
57.5
9.0
12.9

Unit

2023

IFRS

Japanese GAAP

2013

2022

2018

234.8
200.3
5.5
99.7
2.7

2017
140

2019

268.4
200.4
5.5
103.5
2.8

2018
150

2020

328.2
269.7
7.7
106.2
3.0

2019
160

2021

271.9
267.5
8.9
95.2
3.2

2020
160

2022

262.0
245.9
7.6
95.5
2.9

2021
110

317.1
282.1
6.9
112.2
2.7

2022
170

Unit

2023
420.0
305.8
7.1
122.0
2.8

Billion JPY
Billion JPY%
Billion JPY
%

2023
175

Unit
200

JPY

1. In accordance with the decisions of business transfer, Bridgestone Group has classified its US building materials business, anti-vibration rubber business and chemical
products solutions business as discontinued operations from 2021. Accordingly, financial figures represent amounts and figures for continuing operations.
2. Until 2018 (J-GAAP): Net sales, operating profit, and net income attributable to owners of the parent
3. Including intersegment transactions
4. Segment information: The Group changed its segment classifications in fiscal 2016. Until 2015 China, Asia Pacific, Middle East, Africa and Russia; In 2016 China, Asia Pacific andRussia; In 2017 and 2018 China and Asia Pacific; Since 2019 China, Asia-Pacific (excluding India)
5. Segment information: The Group changed its segment classifications in fiscal 2016. Until 2015 Europe; In 2016 Europe, Middle East and Africa; In 2017 and 2018 Europe,
Russia, Middle East and Africa; Since 2019 Europe, Russia, Middle East, India and Africa
6. Ratio of equity attributable to owners of parent to total assets = Total equity attributable to owners of parent ÷ Total assets
7. ROIC (Return on invested capital) = Adjusted operating profit after tax ÷ Invested capital
8. ROE (Return on equity) = Profit / ((Previous year-end total equity + Current year-end total equity) ÷ 2) x 100
9. Until 2018 (J-GAAP): Total assets, liabilities, net assets and equity ratio*   * Equity (Net assets - Share acquisition rights - Non-controlling interests) ÷ Total assets
10. Free cash flow = Cash flows from operating activities + Cash flows from investing activities

108

Bridgestone 3.0 Journey 2024 Integrated Report109Non-Financial Data
We have obtained third-party assurance from LRQA Group Limited for all environmental data and a portion of the social data for
FY2023 as a means to ensure the reliability of this information. See the ESG Data section of Bridgestone’s website for detailed
information, including items covered by the GRI Standards.

ESG Data
https://www.bridgestone.com/responsibilities/esgdata/

Third-Party Assurance
https://www.bridgestone.com/responsibilities/esgdata/pdf/third-party_assurance2024.pdf

LEGEND

FY2023 data items in bold are those for which assurance is provided by third party institution.

Environment-related Data1

FY2019FY2020

FY2021

FY2022

FY2023

Unit

Materials
Amount of raw materials used

Environment-related Data1

FY2019FY2020

FY2021

FY2022

FY2023

Unit

Greenhouse gas emissions at manufacturing sites(CO2 Scope 1)

1,807

1,504

1,722

1,711

1,511

Thousand t-CO2

Greenhouse gas emissions at manufacturing sites(CO2 Scope 2, market-based)

2,139

1,659

1,664

1,370

377

Thousand t-CO2

Emissions
5,051

4,150

4,611

4,389

3,969

Thousand tonnes

698

722

704

936

1087

Million JPY/Thousand tonnes(6.37)(6.98)(6.12)(7.05)(7.66)(Thousand USD/tonnes)

Ratio of recycled and renewable material3

—

37.0

37.2

38.4

39.6

%

Greenhouse gas emissions at manufacturing sites(CO2 Scope 1 + Scope 2, market-based)

3,946

3,162

3,387

3,081

1,888

Thousand t-CO2(Ratio of renewable material)3

—

25.5

25.9

25.9

26.4

%

Greenhouse gas emissions at non-manufacturing
sites (CO2 Scope 1 + Scope 2, market based)

—

—

—

211

182

Thousand t-CO2(Ratio of recycled material)3

—

11.5

11.3

12.5

13.2

%

Greenhouse gas emissions (CH4 and N2O Scope 1 +Scope 2)

16

14

16

14

7

Thousand t-CO2e

110,378

100,097

113,421

109,688

99,201Thousand t-CO2

Resource productivity2

EnergyGreenhouse gas emissions (Scope 3)9Total energy consumption (Manufacturing sites &Non-manufacturing sites) 4, 5

45,00238,31142,72645,132

40,989Thousand GJ

NOx emissions10

1,969

1,629

1,839

1,875

1,660

TonnesEnergy consumption (fuel) 5, 6

26,192

22,032

24,66825,95923,256

Thousand GJ

SOx emissions10

850

603

588

500

511

TonnesEnergy consumption (purchased electricity)5

4,852

4,192

4,654

5,012

4,674

Thousand MWh

Waste

Energy consumption (purchased steam)5

1,382

1,191

1,248

1,111

836

Thousand GJ

Volume of waste generated11

359

289

289

284

286

Thousand tonnes

Total energy consumption (renewable)5

953

1,767

2,847

4,702

11,288

Thousand GJ

Volume of recycled waste12

308

259

272

268

271

Thousand tonnes

44,04936,54539,87940,42929,701Thousand GJ

Recycling waste rate13

86

90

94

94

95

%

Volume of waste to landfill

52

30

17

17

15

Thousand tonnes

21

19

20

25

26

Thousand tonnes

98.1

98.0

99.3

100

100

%

Total energy consumption (non-renewable)5Water

68,30363,744

66,744

67,983

63,990Volume of regulated hazardous waste generated14

Water withdrawal (surface water)

3,131

2,856

2,729

3,217

3,094

Environmental Management

Water withdrawal (groundwater)

9,708

8,480

9,086

8,891

8,124

Total water withdrawal7

Sites with ISO 14001 certification15
Thousand m3

Water withdrawal (water supply, industrial water)

17,61916,137

17,24916,94816,374

Water withdrawal (seawater)

37,84436,27137,67838,92736,397

Total water withdrawal by manufacturing facilities inwater stress areas8

3,208

2,873

2,981

2,712

2,493

9. Category 8 and 13 are excluded from the 15 categories in Scope 3 of the GHG protocol.
10. Emissions from combustion of fossil fuels estimated based on fuel consumption data and corresponding emission factors.
11. Total volume of waste including non-hazardous waste and regulated hazardous waste.
12. Calculation method: Volume of waste generated - Volume of waste to landfill.
13. Calculation method: Volume of recycled waste / Volume of waste generated.
14. Calculated based on laws of each country. The calculation scope of regulated hazardous waste is partially expanded from 2022.
15. Within 98 sites that are targeted for ISO 14001 certification (as of December 31, 2023).

1. Figures represent all Bridgestone Group facilities for the period of January 1 to December 31 for each year referenced. Includes some estimates.
2. Sales per raw material used.
3. Within total material weight for tire products including tire casing for retreading.
4. Calculation method: Fuel consumption + Purchased electricity + Purchased steam + Solar power generation, etc. - Electricity sold.
5. The scope of FY2022 and beyond data are Manufacturing and Non-Manufacturing sites, The scope of FY2018-FY2021 data are only Manufacturing sites.
6. Includes fuel used for in-house power generation.
7. Water withdrawal does not include the recycled water from third parties and rainwater.
8. Manufacturing facilities that have water-related risks due to their locations in areas with the risk of deterioration of fresh water resources in terms of quantity and quality.

110

Bridgestone 3.0 Journey 2024 Integrated Report111Corporate and Investor Information
Social-related Data

Japan1China,
Asia Pacific

37,754

Number of employees2

Europe, Russia, Middle East,
India and Africa

Americas17,51349,513

Total

20,419Unit

125,199

Persons

1. “Japan” includes “Japan”, “Other”, and “Company-wide (common)” segments as presented in the Annual Securities Report.
2. As of December 31, 2023.

Leader positions

3

Socialrelated Data

Segment

Ratio offemaleemployees1

Total

Top
mgmt.

Mgmt.
positions

Juniormgmt.
positionsOtherstaff and
positions

Total

Unit

12.2

2.2

7.6

5.7

6.2

13.4

China, Asia Pacific

10.1

9.9

20.8

10.6

14.3

9.5

Americas

12.6

26.5

26.6

21.5

22.3

10.1

Europe, Russia, Middle
East, India and Africa

12.8

3.0

22.9

15.1

17.5

11.9

Total

12.2

7.8

17.9

15.7

16.1

11.3

Product safety
Provision for productwarranties

1931

713,698,221 (As of December 31, 2023)■Head Office■Minimum Trading Units

1-1, Kyobashi 3-chome, Chuo-ku,
Tokyo 104-8340, Japan

100 shares■Paid-in Capital

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8233, Japan■Transfer Agent%

125,199 (Consolidated, as of December 31, 2023)■Independent Auditor■Technology Centers

KPMG AZSA LLC

Japan: Tokyo and Yokohama
United States: Akron, Ohio
Italy: Rome
China: Wuxi
Thailand: Pathum Thani■Stock Exchange Listings■Credit Ratings■Shareholder Composition(As of December 31, 2023)(As of December 31, 2023)

Unit

Tokyo, Fukuoka

Rating Agency Name

Long-term
RatingMoody’s Japan K.K. (Moody’s)

A2

FY2021

FY2022

FY2023

Total

14

11

11

12

12

Persons

Standard & Poor’s (S&P)

A

Number of foreign members

7

6

6

6

6

Persons

Rating and Investment Information, Inc. (R&I)

AA+

50.0

54.5

54.5

50.0

50.0

%

Japan Credit Rating Agency, Ltd. (JCR)

AA+

Total

60

51

16

20

19

Persons■Common Stock Price Range

Number of foreign members

11

9

5

7

5

Persons(Tokyo Stock Exchange)

Percentage of foreign members

18.3

17.6

31.3

35.0

26.3

%

Sites with ISO 9001 certification

99.4

100.0

99.2

100.0

100.0

%

Balance at beginning of year

6,308

8,459

9,040

6,797

22,528Million JPY

Decrease (used)

4,186

11,371

6,030

5,469

8,930

Million JPY

1

2

3

6

0

NumberLost-time injury frequency rate of
employees and temporary staff

2.86

2.57

2.75

2.74

2.76

Lost-time injury frequency rate ofcontractors

1.863

2.31

0.79

0.62

0.11

Serious injury rate of employees andtemporary staff

0.09

0.04

0.08

0.08

0.06

Serious injury rate of contractors

0.293

0.19

0.11

0.06

0.01

—

0.504

1.33

0.68

0.19

Occupational illness frequency rate of
employees and temporary staff

Individuals
Individuals
and others
and others
20.9% 20.9%
Financial
Financial
institutions
institutions
29.8% 29.8%
Foreign
Foreigncorporations,
corporations,etc. 27.9.%
etc. 27.9.%
Financial
Financial
instruments
instruments
businessbusiness
operators
operators
6.6% 6.6%
Other Other
corporations
corporations
14.8% 14.8%

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

High

4,025

4,459

5,182

4,463

5,605

5,515

4,734

4,082

5,467

5,509

6,245

Low

2,248

3,328

3,754

3,089

3,973

3,906

3,888

2,862

3,307

4,042

4,548

■Common■Common
StockStock
PricePrice
Index*
Index*

CommonCommonStock Stock
Price Index
Price Index

Unit
JPY

NikkeiNikkei
Stock Stock
Average
Average400% 400%

300% 300%—

Data as of December 31 for each year referenced.
1. Including officers of Bridgestone subsidiaries. Data for 2021 and 2022 are the number of vice presidents and senior officers only, and 2020 include other officers. The change is due to theelimination of the executive officer system in 2020.
2. The number of recalls carried out by Bridgestone itself (excluding those carried out by other companies) and recall details can be found on each region’s website, authorities’ website, etc.
3. Figures are for the six months from July to December 2019.
4. Figures are for the six months from July to December 2020.

112■Number of Shares Issued

FY2020

Number of recall2

Occupational safety■Established

FY2019Percentage of foreign members

Executive officers,
vice presidents andsenior officers1■Number of Shares Authorized
1,450,000,000 (As of December 31, 2023)■Number of Employees

1. Data as of December 31, 2023 from 125,116 employers and employees (99.7% of total workforce).
2. “Japan" includes "Japan," "Other" and "Company-wide (common)" segments in the Annual Securities Report.
3. The definitions of each category are as follows.
Top managerial positions: Officer-equivalent (Executives & VPs)
Managerial positions: Persons in charge of the management of an organization (Line Managers)
Junior managerial positions: Persons who contribute to the organization with their individual knowledge and experience, or are in a position to guide the organization’s day-to-day
management objectives, which include leaders who manage and oversee teams in manufacturing sites and other sites (Genba)

Global Executive
Committee members

Bridgestone Corporation

126,354 million JPY (As of December 31, 2023)

Japan2Social- and Governance-related Data

■Corporate Name

200% 200%

100% 100%20132013 20142014 2015

2015 20162016 20172017 20182018 20192019 2020 2020 2021

2021 2022 2022 2023 2023

* Relative* value
Relative
is basedvalue isonbased100 asonof100
January
as of 4,January
2013. 4, 2013.

Bridgestone 3.0 Journey 2024 Integrated Report113

Bridgestone 3.0 Journey
2024 Integrated Report

Bridgestone Corporation
https://www.bridgestone.com/contact/form_rd_04.html
IR Department
Global Sustainability Strategy Division
1-1, Kyobashi 3-chome, Chuo-ku, Tokyo 104-8340, Japanwww.bridgestone.com

June 2024