Proposals and Business Report, etc. of the 105th
Annual Shareholders’ Meeting

Bridgestone Corporation

Note:
This English translation of the Proposals and Business Report, etc. of the 105th Annual
Shareholders’ Meeting is for convenience only. If there are any differences between this translationand the Japanese original, the Japanese original supersedes this translation.

INDEX
Reference To Exercise Of Voting Rights (Proposals And Reference Information) ..... 2
Proposal 1 Appropriation of Surplus ............................................................................. 2
Proposal 2 Election of Twelve (12) Members of the Board ........................................... 3
Business Report........................................................................................................................ 20
Consolidated Financial Statements ......................................................................................... 49
Non-Consolidated Financial Statements ................................................................................. 55
Audit Report .............................................................................................................................. 58

To shareholders who have requested the delivery of materials in paper format
The following matters that are not stated in this document are posted on the Company’s website in accordancewith the relevant provisions of the laws and regulations and the Company’s Articles of Incorporation, and are
therefore not included in the materials in paper format delivered to shareholders who have requested it.
⚫

⚫
⚫

“Primary Businesses,” “Major Business Locations,” “Employees,” “Shares of Bridgestone Corporation,”“Stock Acquisition Rights of Bridgestone Corporation,” “Matters Related to the Outside Directors,” “Matters
Related to the Independent Auditors” and “Systems to Ensure the Propriety of Business Operations (‘Internal
Control Systems’)” in the Business Report“Consolidated Statement of Changes in Equity” and “Notes to Consolidated Financial Statements” in theConsolidated Financial Statements“Non-consolidated Statement of Changes in Equity” and “Notes to Non-consolidated Financial Statements”
in the Non-consolidated Financial Statements

Accordingly, matters that are stated in this document constitute only a part of the scope of the audit performed by
the Audit Committee and the Independent Auditors in the preparation of audit reports.

1

Reference to Exercise of Voting Rights
Proposals and Reference Information
Proposal 1
Appropriation of Surplus
The Company proposes to appropriate surplus by disbursing the year-end dividend for the year according to theschedule shown below in view of the year’s closing results, and the interest of promoting corporate strength,
future business development and other aspects.
1. Matters related to year-end dividends(1) Disbursement of dividends to shareholders and the total amount thereof
It is proposed that a total amount of 68,465,405,000 yen (one hundred (100) yen per share) be disbursed.
Accordingly, the fiscal year’s total dividend, including the interim dividend, would be two hundred (200) yen per
share.
(2) Effective date of the disbursement of dividends from surplus
It is proposed that the effective date for the disbursement of dividends be March 27, 2024.
[Reference] Dividends

Fiscal 2022
Fiscal 2023
Fiscal 2024
(Projection)

1st quarter end
Yen―

2nd quarter end
Yen
85.00

Dividend per share
3rd quarter end
Yen―

Year-end
Yen
90.00

Total
Yen
175.00―100.00―100.00200.00―105.00―105.00210.00Cautionary notes concerning dividend projections
As projections on dividends contain unpredictable elements that may cause fluctuations, they do not constituteguarantees by the Company of their achievement.

2

Proposal 2
Election of Twelve (12) Members of the Board
The term of office of all the twelve (12) current Members of the Board expires at the close of this Shareholders’Meeting. Accordingly, it is proposed that twelve (12) nominees be appointed as Members of the Board.
These nominees for Members of the Board have been determined through strict selection procedures at theNominating Committee of the Company.
Each nominee has been confirmed to meet the requirements of the “Nominating Policy for Appointment to theBoard” (as described on page 18) in the selection process.
Furthermore, the Nominating Committee made its decisions after exhaustive deliberations with the aim of creating
an overall-balanced Board of Directors whose human resource portfolio meets the needs of the Board to supervise
the appropriate execution of the Company’s Mid-Long Term Business Strategy and new three-year Mid TermBusiness Plan (2024-2026), as the Company aims to become a sustainable solutions company. In suchdeliberations, the independence of Outside Directors was considered as a matter of course while also paying heed
to the importance of planned succession, and due consideration was also given to ensuring the diversity of theBoard, including not only the expertise of the Board members but also their work histories and their period ofservice within the Company.
The reasons for selecting the nominees for Members of the Board are indicated below.

No.

Name

1

Shuichi Ishibashi

Renomination

2

Masahiro Higashi

Renomination

3 Scott Trevor Davis Renomination

4

Yuri Okina

Renomination5

Kenichi Masuda

Renomination

6

Kenzo Yamamoto Renomination

7

Yojiro Shiba

Renomination

8

Yoko Suzuki

Renomination

9

Yukari Kobayashi Renomination

10 Yasuhiro Nakajima Renomination
11

Akira Matsuda

Renomination

12 Tsuyoshi Yoshimi Renomination

Attendance at
Current position and assignment the Board of Attendance at statutory
in the Company
Directors formeetings for the year
the year
Member of the Board,
100%
Global CEO and Representative(15 of 15)
Executive Officer
Member of the Board,100%
Joint Global COO and(15 of 15)
Representative Executive Officer
Member of the Board,
Nominating Committee:
Chairperson of the Board of
Outside Director,
100%
100% (18 of 18)
Directors, Member of the
Independent Director(15 of 15) Compensation Committee:
Nominating Committee, Member
100% (15 of 15)of the Compensation Committee
Member of the Board,
Nominating Committee:
Outside Director, Chairperson of the Compensation
100%
100% (18 of 18)
Independent Director Committee, Member of the(15 of 15) Compensation Committee:
Nominating Committee
100% (15 of 15)
Member of the Board,
Nominating Committee:
Outside Director, Chairperson of the Nominating
100%
100% (18 of 18)
Independent Director Committee, Member of the(15 of 15) Compensation Committee:
Compensation Committee
100% (15 of 15)
Member of the Board,
Outside Director,
100%
Audit Committee: 100%
Chairperson of the Audit
Independent Director(15 of 15) (19 of 19)
Committee
Outside Director, Member of the Board, Member of100%
Audit Committee: 100%
Independent Director the Audit Committee(15 of 15) (19 of 19)
Outside Director, Member of the Board, Member of100%
Audit Committee: 100%
Independent Director the Audit Committee(15 of 15) (19 of 19)
Outside Director, Member of the Board, Member of100%
Audit Committee: 100%
Independent Director the Audit Committee(11 of 11) (14 of 14)
Outside Director, Member of the Board, Member of100%
Audit Committee: 100%
Independent Director the Audit Committee(11 of 11) (14 of 14)
Member of the Board, Member of100%
Audit Committee: 100%the Audit Committee (full-time)(11 of 11) (14 of 14)
Member of the Board, Member of100%
Audit Committee: 100%the Audit Committee (full-time)(15 of 15) (19 of 19)

Note: Ms. Yukari Kobayashi, Mr. Yasuhiro Nakajima, and Mr. Akira Matsuda’s attendance differs from other nominees as they
were newly elected as Members of the Board at the 104th Annual Shareholders’ Meeting held on March 28, 2023, and werealso appointed as Members of the Audit Committee on the same date.

3

Nominees for Members of the Board
No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

1

April 1977

Shuichi Ishibashi(January 19, 1954)
Renomination

Joined Bridgestone Tire Co., Ltd. (currently Bridgestone
Corporation)
Director, Consumer Tires Business
Vice President and Officer
Vice President and Senior Officer
Senior Vice President
Executive Vice President
Executive Vice President and Executive Officer
Vice Chair and Representative Executive Officer
Member of the Board, Global CEO and Representative Executive
OfficerJune 2003
January 2005
July 2012
January 2014
January 2016
March 2016
January 2019
March 2020
to Present

・The term of office as Member ofthe Board: 4 years
・Attendance at the Board of
Directors for the year:100%
15 of 15
・Number of shares owned: 33,000(Reason for nomination as Member of the Board and overview of expected roles)
Since Mr. Shuichi Ishibashi joined the Company, he has been engaged in the tire business in the Americas and Japan,
chemical and industrial products and diversified products business, global marketing strategy, solutions business, andtechnology and quality management. Since his appointment as Global CEO and Representative Executive Officer in 2020,
he has formulated the Mid-Long Term Business Strategy, which was approved by the Board of Directors, and has
powerfully promoted the implementation of the Mid Term Business Plan for 2021 to 2023 based on this strategy. To further
accelerate the transformation based on these results, he has formulated the new three-year Mid Term Business Plan with
2024 as the first year and has already launched a strengthened management structure. He continues to lead the execution of
our strategies and business plans to continuously provide social and customer value as a sustainable solutions company.
The Company has determined that Mr. Shuichi Ishibashi qualifies as a Member of the Board as he is expected to contributeto the enhancement of corporate value by participating in deliberations and decision making at Board of Directors’ meetings
as the CEO based on his global business experience and insight.

4

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

2

April 1985
January 2013

Masahiro Higashi(February 11, 1961)
Renomination
・The term of office as Member ofthe Board: 3 years
・Attendance at the Board of
Directors for the year:100%
15 of 15
・Number of shares owned: 25,300

Joined Bridgestone Corporation
Director, Global Customer and Market Research Division and
Director, Advanced Business Planning Division
October 2013
Vice President and Officer
March 2017
Vice President and Senior Officer
January 2019
Senior Vice President and Executive Officer
January 2020
Vice Chair and Representative Executive Officer
July 2020
Global COO and Representative Executive Officer, Global CAO
March 2021
Member of the Board, Global COO and Representative Executive
Officer, Global CAO
September
Member of the Board, Global COO and Representative Executive
2021
Officer
May 2022
Member of the Board, Joint Global COO and Representative
Executive Officer
January 2024
Member of the Board, Joint Global COO・
to Present
BRIDGESTONE EAST CEO, Global CAO(Important concurrent positions)
Chairman of the Board, Bridgestone Asia Pacific Pte. Ltd.
Chairman and Representative Board Member, Bridgestone Tire Solution Japan Co.,Ltd.

(Reason for nomination as Member of the Board and overview of expected roles)
Since Mr. Masahiro Higashi joined the Company, he has been engaged in the tire business in the Americas and Thailand,chemical and industrial products and diversified products business, advanced business planning, and solutions business.
Since his appointment as Global COO and Representative Executive Officer in 2020, he has promoted the management of
BSJP and the implementation of financial, human resource, and sustainability strategies. From 2022, as Joint Global COO,
responsible for overseeing BSJP and BSCAP, he has steadily promoted the execution based on the Mid-Long TermBusiness Strategy and Mid Term Business Plan. In addition, as Global CAO (Chief Administration Officer), he is
responsible for ensuring consistency between global and regional strategy and maximizing the effectiveness and efficiencyof frameworks for executing the new three-year Mid Term Business Plan with 2024 as the first year.
The Company has determined that Mr. Masahiro Higashi continuously qualifies as a Member of the Board as he is expected
to contribute to the enhancement of corporate value by participating in deliberations and decision making at Board of
Directors’ meetings as a senior management responsible for business execution based on his global business experience andinsight.

5

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

3

April 1990

Researcher, The Japan Institute of Labour (currently The Japan
Institute for Labour Policy and Training)
Professor, Department of International Economics, Reitaku
University
Professor, Department of Global Business, College of Business,
Rikkyo University
Member of the Board as Outside Director, Bridgestone
Corporation
Director, Board of Directors, Fujitsu-JAIMS Foundation

April 2001

Scott Trevor Davis(December 26, 1960)
Renomination
Outside Director
Independent Director

April 2006
to Present
March 2011
to Present
July 2020
to Present(Important concurrent positions)
Professor, Department of Global Business, College of Business, Rikkyo University
Outside Director, Sompo Holdings, Inc.
Outside Director, Ajinomoto Co., Inc.

・The term of office as Member ofthe Board: 13 years
・Attendance at the Board of
Directors for the year:100%
15 of 15
・Number of shares owned: 1,000(Reason for nomination as Outside Director and overview of expected roles)
Mr. Scott Trevor Davis has excellent academic knowledge in sociology and international business administration, and aabundant insight regarding sustainability and ESG in Japan and overseas.
Since his appointment as Outside Director of the Company, he has been contributing to ensuring appropriate decision
making of the Board of Directors, including from the perspectives of governance, compliance, and organizational andpersonnel strategy. Based on his extensive experience as an Outside Director of the Company, he has been playing a leadingand extremely vital role since 2021 as the Company’s first Independent Outside Director serving as Chairperson of theBoard of Directors in setting appropriate agenda items and further enhancing deliberations, etc. In addition, he participatesin active deliberations as a member of the Nominating Committee and a member of the Compensation Committee, andplays a leading role as Chairperson of the Governance Committee in the discussion to further enhance the Company’s
governance framework, including the effectiveness of the Board of Directors.
He also contributes significantly as Chairperson of the Board of Directors to conduct more efficient and effective
management of the Board of Directors that meets stakeholders’ expectations by actively participating in dialogue withinvestors and analysts, etc.
The Company is required to further establish and promote a governance framework necessary for the execution andsupervision of the Mid Term Business Plan (2024-2026), and based on his above experience, insights and achievements, theCompany has determined that Mr. Scott Trevor Davis would appropriately execute the duties as an essential Outside
Director for this purpose.

6

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

4
April 1984
April 1992
May 2003

Joined Bank of Japan
Joined The Japan Research Institute, Limited
Director of Industrial Revitalization Commission, Industrial
Revitalization Corporation of Japan (part-time position)Council Member, Science Council of Japan
Research Director, Chief Economist, The Japan ResearchInstitute, Limited
Visiting Professor, Waseda University
Member of the Board as Outside Director, Bridgestone
Corporation
Vice Chairman of the Institute, The Japan Research Institute,
LimitedInvited Professor, Keio University

October 2005
June 2006
Yuri Okina(March 25, 1960)
Renomination
Outside Director
Independent Director
・ The term of office as Member ofthe Board: 10 years
・Attendance at the Board of
Directors for the year:100%
15 of 15
・Number of shares owned: 0April 2010
March 2014
to Present
June 2014
September
2014
April 2018
to Present

Chairperson of the Institute, The Japan Research Institute,
Limited(Important concurrent positions)
Chairperson of the Institute, The Japan Research Institute, Limited
Outside Director, Marubeni Corporation(Reason for nomination as Outside Director and overview of expected roles)
Ms. Yuri Okina has significant research experience regarding financial systems and financial administration, as well as
abundant knowledge of economics and financial situations.
Since her appointment as an Outside Director of the Company, she has been contributing to ensuring appropriate decision
making of the Board of Directors from a wide range of perspectives, including sustainability, capital policy, andgovernmental policy trends. She was appointed as Chairperson of the Compensation Committee in 2016 when the Company
made the major transition to the “Company with Nominating Committee, etc.” Since then, she has been playing a leadingand extremely vital role in considering, establishing, and verifying compensation plans that promise a more adequately
incentivizing effect, etc., to contribute to realizing the Company’s management and business strategies. At the same time,
she has also been participating in active deliberations on succession planning for Directors and Executive Officers as amember of the Nominating Committee.
In view of these experiences, insights, and achievements, Ms. Yuri Okina is expected to continue to fulfill these roles, andthe Company has determined that she qualifies as an Outside Director.

7

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

5

Kenichi Masuda(January 11, 1963)
Renomination
Outside Director
Independent Director

April 1988
to Present
September1993
to Present
January 1997
to Present
April 2010

Lawyer, Admitted in Japan
Lawyer, Admitted in New York

Partner, Anderson Mori (Japanese law firm: currently Anderson
Mori & Tomotsune)
Adjunct Lecturer, Graduate Schools for Law and Politics, The
University of Tokyo
March 2011
Outside Corporate Auditor, Bridgestone Corporation
March 2016
Member of the Board as Outside Director, Bridgestone
to Present
Corporation
April 2019
Visiting Professor, Graduate Schools for Law and Politics, The
University of Tokyo(Important concurrent positions)
Partner, Anderson Mori & Tomotsune
Outside Audit & Supervisory Board Member, Mercuria Holdings Co., Ltd.
Outside Audit & Supervisory Board Member, Chugai Pharmaceutical Co., Ltd.

・ The term of office as Member ofthe Board: 8 years
・Attendance at the Board of
Directors for the year:100%
15 of 15
・Number of shares owned: 0(Reason for nomination as Outside Director and overview of expected roles)
Mr. Kenichi Masuda has abundant professional career experience as a lawyer at law firms in Japan and overseas, as well as
expertise, as represented by his experience of teaching corporate law at a graduate school of law. Since his appointment as
Outside Director of the Company, he has been contributing to ensuring appropriate decision making of the Board of
Directors from a wide range of perspectives, not only legal and risk management, but also shareholder returns andorganizational strategies. He was appointed Chairperson of the Nominating Committee in 2021, following the Company’stransition to its current executive framework in 2020. Based on his extensive experience at the Company, he has beenplaying a leading and extremely vital role in strengthening the management execution structure and oversight thereof by
actively engaging in the verification of the Board of Directors’ human resources portfolio and the succession planning ofinternal and Outside Directors and Executive Officers, etc. In addition to participating in active deliberations as a memberof the Compensation Committee, he has also been playing a leading role as Chairperson of the Compliance Committee inverifying and discussing further improvements to the Company’s compliance framework.
The role of considering the composition of the Board of Directors necessary for execution and supervision of the Mid TermBusiness Plan (2024-2026) has become even more important, and based on his above experience, insights andachievements, the Company has determined that Mr. Kenichi Masuda would appropriately execute the duties as an essential
Outside Director for this purpose.

8

No.

Name
(Date of birth)

6

Kenzo Yamamoto(January 21, 1954)
Renomination
Outside Director
Independent Director
・ The term of office as Member ofthe Board: 8 years
・Attendance at the Board of
Directors for the year:100%
15 of 15
・Number of shares owned: 3,000

Brief personal history, position, assignment and important concurrent positions
April 1976
Joined Bank of Japan
December 2003 General Manager for the Americas and Chief Representative in
New York, Bank of Japan
July 2005
Director-General, Payment and Settlement Systems Department,
Bank of Japan
July 2006
Director-General, Financial System and Bank Examination
Department, Bank of JapanMay 2008
Executive Director, Bank of Japan
June 2012
Chairman, NTT Data Institute of Management Consulting, Inc.
August 2013
Board Member, Quality Control Oversight Board, The JapaneseInstitute of Certified Public Accountants
July 2014
Committee Member, Risk Committee, Mitsubishi UFJ Financial
Group, Inc.
March 2016
Member of the Board as Outside Director, Bridgestone
to Present
Corporation
June 2018
Representative, Office KY Initiativeto Present
February 2019 Director, TOMIYAMA CULTURAL FOUNDATION
to Present
July 2020
Committee Member, Disciplinary Committee, Japan Securities
to Present
Dealers Association(Important concurrent positions)Representative, Office of Financial and Economic Initiative
Outside Director, SUMITOMO LIFE INSURANCE COMPANY
Outside Director, JAPAN POST BANK Co., Ltd.

(Reason for nomination as Outside Director and overview of expected roles)
Mr. Kenzo Yamamoto has abundant knowledge of the financial market and financial systems, as well as high insight
regarding corporate management and risk management.
Since his appointment as an Outside Director of the Company, he has been contributing to ensuring appropriate decision
making by the Board of Directors from the perspective of corporate management and risk management in light of global
conditions and human capital improvement. Since 2018, as a Chairperson of the Audit Committee, he has beenstrengthening our auditing system on a global scale, etc., and in 2023, he played a leading and extremely vital role in thechange of our Independent Auditor, taking into consideration the rotation system used for auditing firms in other countries.
In view of these experiences, insights, and achievements, Mr. Kenzo Yamamoto is expected to contribute from a morediverse perspective, and the Company has determined that he qualifies as an Outside Director.

9

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

7
April 1974
March 2003
May 2005
April 2009

Yojiro Shiba(August 7, 1950)
Renomination
Outside Director
Independent Director

Joined The Industrial Bank of Japan, Limited (currently Mizuho
Bank, Ltd.)Managing Executive Officer, Mizuho Bank, Ltd.
Executive Officer, Oriental Land Co., Ltd.
Representative Director and Executive Vice President Officer,
Oriental Land Co., Ltd.
External Director, AMUSE INC.
Director and Vice Chairman, AMUSE INC.
Member of the Board as Outside Director, Bridgestone
Corporation
Representative Director and President, AMUSE INC.
Outside Director, NIPPON EXPRESS CO., LTD.
Outside Director, NIPPON EXPRESS HOLDINGS, INC.

June 2013
June 2015
March 2018
to Present
April 2019
June 2021
January 2022
to Present(Important concurrent positions)
Outside Director, NIPPON EXPRESS HOLDINGS, INC.

・ The term of office as Member ofthe Board: 6 years
・Attendance at the Board of
Directors for the year:
100% 15 of 15
・Number of shares owned: 0(Reason for nomination as Outside Director and overview of expected roles)
Mr. Yojiro Shiba possesses knowledge of value creation and establishment of business from the perspective of customers
based on his extensive corporate management experience in the financial industry and entertainment business industry.
Since his appointment as an Outside Director of the Company, he has been contributing to ensuring appropriate decision
making of the Board of Directors also from the perspective of whether the Company’s organizational strategy leads to theenhanced effectiveness of operations rooted in on-site activities, etc. In addition, as a member of the Audit Committee, he
has been participating in active deliberations and working to promote the strengthening of our auditing system on a global
scale, etc., with a focus on improving efficiency and effectiveness.
In view of these experiences, insights and achievements, Mr. Yojiro Shiba is expected to continue to fulfill these roles, andthe Company has determined that he qualifies as an Outside Director.

10

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

8

Yoko Suzuki(September 21, 1970)
Renomination
Outside Director
Independent Director

April 1998
Lawyer, Admitted in Japanto Present
April 1998
Joined Takagi Godo Law OfficeNovember 2002 Partner, Suzuki Sogo Law Office
to Present
January 2008
Director, International IC Association of Japan
April 2015
Auditor, The Research Institute of Economy, Trade and Industry
to Present
March 2018
Member of the Board as Outside Director, Bridgestone
to Present
Corporation
June 2018
Auditor, Hitotsubashi University Collaboration Center
to Present
September
Auditor, National Archives of Japan2021
to Present(Important concurrent positions)
Partner, Suzuki Sogo Law OfficeOutside Director, Nippon Pigment Company Limited
External Audit & Supervisory Board Member, MARUI GROUP CO., LTD.
Outside Director of the Board, JAPAN PULP AND PAPER COMPANY
LIMITED・The term of office as Member ofthe Board: 6 years
・Attendance at the Board of
Directors for the year:
100% 15 of 15
・Number of shares owned: 3,600(Reason for nomination as Outside Director and overview of expected roles)
Ms. Yoko Suzuki has high expertise as a lawyer, and abundant experience and deep insight as an outside auditor and auditorof other companies and various associations.
Since her appointment as an Outside Director of the Company, she has been contributing to ensuring appropriate decision
making of the Board of Directors, not only in risk management but also from the perspective of enhancing talent creativity
with an awareness of diversity and engagement. In addition, as a member of the Audit Committee, she has been
participating in active deliberations and working to promote the strengthening of our auditing system on a global scale, etc.
In view of these experiences, insights and achievements, Ms. Yoko Suzuki is expected to continue to fulfill these roles, andthe Company has determined that she would appropriately execute the duties as an Outside Director.

11

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions
April 1987
July 2002

9

January 2007
January 2007
March 2016

Yukari Kobayashi(April 17, 1963)
Renomination

January 2018
February 2018
September
2018

Joined IBM Japan, Ltd.
Senior Manager, Overall Management of System Products
Marketing, IBM Japan, Ltd.
Director in charge of Public Sector, Global Business Service,
IBM Japan, Ltd.
Executive Officer, IBM Business Consulting Services KK
Growth Leader for Mercer Far East Zone; Chief of Staff, Mercer
Japan Ltd.
Director, Mercer Investment Solutions Ltd.
Chief Operating Officer, Mercer Japan Ltd.
Corporate Officer; Corporate Strategy Management Lead, Area
Transformation Lead, and Chief of Staff, Microsoft Japan Co.,
Ltd.
Representative Partner, Amanda Life Consulting LLC

March 2020
to Present
March 2023
Member of the Board as Outside Director, Bridgestone
Independent Director
to Present
Corporation
June 2023
Representative Member of JC1 LLC.
・The term of office as Member ofto Present
the Board: 1 year
(Important concurrent positions)・Attendance at the Board ofRepresentative Partner, Amanda Life Consulting LLC
Directors for the year:
Representative Member of JC1 LLC.
100%
11 of 11
Outside Director, Nippon Shinyaku Co., Ltd.
・Number of shares owned: 100
Outside Director, Panasonic Connect Co., Ltd.
(Reason for nomination as Outside Director and overview of expected roles)
Ms. Yukari Kobayashi has deep insight into the digital field and business strategy through her extensive practical andmanagement experience in the IT and consulting industries.
Since her appointment as an Outside Director of the Company last year, she has been contributing to ensuring appropriate
decision making of the Board of Directors from the perspectives of global business strategies, such as digital fields and risk
management. In addition, as a member of the Audit Committee, she has been participating in active deliberations andpromoting the strengthening of our auditing system on a global scale, including the establishment of an effective risk
management system.
In view of these experiences, insights and achievements, Ms. Yukari Kobayashi is expected to continue to fulfill these roles,
and the Company has determined that she qualifies as an Outside Director.
Outside Director

12

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

10
April 1984
March 1995
to Present
July 2007
July 2012
July 2014
Yasuhiro Nakajima(October 13, 1961)
Renomination
Outside Director
Independent Director

Joined Hitachi, Ltd.
Certified Public Accountant, Admitted
Representative Partner, PricewaterhouseCoopers Aarata(currently PricewaterhouseCoopers Aarata LLC)
Executive Officer (Leader of Quality Management),
PricewaterhouseCoopers Aarata
General Manager, Nagoya Office, PricewaterhouseCoopers
Aarata LLC
Oversight Board Member, PricewaterhouseCoopers Aarata LLC
Specially Appointed Professor, Osaka Metropolitan University

July 2017
April 2022
to Present
July 2022
Representative, Nakajima CPA Office
to Present
March 2023
Member of the Board as Outside Director, Bridgestone
to Present
Corporation(Important concurrent positions)Representative, Nakajima CPA Office

・The term of office as Member ofthe Board: 1 year
・Attendance at the Board of
Directors for the year:100%
11 of 11
・Number of shares owned: 100(Reason for nomination as Outside Director and overview of expected roles)
Mr. Yasuhiro Nakajima has abundant professional career and experience in accounting audit and advisory services as a
Certified Public Accountant, and possesses expertise through teaching accounting and audit at a university.
Since his appointment as an Outside Director of the Company last year, he has been contributing to ensuring appropriate
decision making of the Board of Directors, not only in finance and accounting but also from the perspective of businessstrategy from a global standpoint. In addition, as a member of the Audit Committee, he has been participating in active
deliberations and working to promote the strengthening of our auditing system on a global scale, including throughcooperation with the auditing firm that became the Company’s Independent Auditor in 2023.
In view of these experiences, insights and achievements, Mr. Yasuhiro Nakajima is expected to continue to fulfill theseroles, and the Company has determined that he would appropriately execute the duties as an Outside Director.

13

No.

Name
(Date of birth)

Brief personal history, position, assignment and important concurrent positions

11
April 1987
September
1989
January 2011
March 2014
January 2017
Akira Matsuda(January 16, 1963)

January 2019
January 2022

Renomination

Joined Bridgestone Corporation
Seconded to Bridgestone/Firestone Inc. (currently Bridgestone
Americas, Inc.) (The United States)
Director, eco-Activities Promotion Division
Vice President and Officer, Environment
Vice President and Senior Officer, Responsible for Global
Innovation
Vice President and Senior Officer; CQMO*, Responsible for
Quality Management
Lead Expert; CQMO; Assistant to Executive Vice President,
Responsible for Quality Management
Member of the Board

March 2023
to Present
・The term of office as Member of*CQMO: Chief Quality Management Officer
the Board: 1 year
・Attendance at the Board of
Directors for the year:
100% 11 of 11
・Number of shares owned: 3,800(Reason for nomination as Member of the Board and overview of expected roles)
Since Mr. Akira Matsuda joined the Company, he has accumulated abundant professional experience in tire material
development, environmental promotion, technological innovation, and quality management in Japan and the Americas.
Since his appointment as a Member of the Board of the Company last year, he has been contributing to ensuring appropriate
decision making of the Board of Directors from the perspective of ESG and technology innovation by utilizing his broad
experience and insight in the business execution field. In addition, as a full-time Audit Committee member who has worked
for the Company for many years, he has been promoting the strengthening of our auditing system on a global scale byproactively gathering internal information and participating in active deliberations.
In view of these experiences, insights, and achievements, Mr. Akira Matsuda is expected to continue to fulfill these roles,
and the Company has determined that he qualifies as a Member of the Board.

12

Tsuyoshi Yoshimi(May 26, 1964)

April 1988
January 2010
September
2012
October 2013
March 2017
March 2019
to Present

Joined Bridgestone Corporation
Seconded to Bridgestone Asia Pacific Pte. Ltd. (Singapore)
Seconded to Bridgestone (China) Investment Co., Ltd. (Shanghai)
Director, Finance Division
Vice President and Officer, Auditing
Member of the Board

Renomination
・ The term of office as Member ofthe Board: 5 years
・Attendance at the Board of
Directors for the year:
100% 15 of 15
・Number of shares owned: 3,100(Reason for nomination as Member of the Board and overview of expected roles)
Since Mr. Tsuyoshi Yoshimi joined the Company, he has accumulated abundant business experience by working in areas
such as finance, Asia Pacific business, and internal auditing.
Since his appointment as a Member of the Board of the Company, he has been contributing to ensuring appropriate decision
making of the Board of Directors from the perspective of finance and risk management by utilizing his broad businessexperience and insight in the business execution field. In addition, as a full-time Audit Committee member who has worked
for the Company for many years, he has been promoting the strengthening of our auditing system on a global scale,including the change of our Company’s Independent Auditor in 2023, by proactively gathering internal information andparticipating in active deliberations.
In view of these experiences, insights and achievements, Mr. Tsuyoshi Yoshimi is expected to continue to fulfill these roles,
and the Company has determined that he qualifies as a Member of the Board.

14

Notes:1. There are no special interests between each nominee and the Company.
2. Mr. Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto, Mr. Yojiro Shiba, Ms.
Yoko Suzuki, Ms. Yukari Kobayashi and Mr. Yasuhiro Nakajima are the nominees as Outside Directors.
3. To ensure the independence of its Outside Directors, the Company has designated its own “Guidelines for
Determining Whether Outside Directors are Sufficiently Independent” (as described on page 18), in addition to therespective standards stipulated by each of the stock exchanges on which the Company’s shares are listed. Mr.
Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto, Mr. Yojiro Shiba, Ms. Yoko
Suzuki, Ms. Yukari Kobayashi, and Mr. Yasuhiro Nakajima have fulfilled the Guidelines and the standards, andthe Company has notified the respective stock exchanges of them as Independent Directors.
4. Sompo Japan Insurance, Inc., a subsidiary of Sompo Holdings, Inc., for which Mr. Scott Trevor Davis serves as
an Outside Director, has been involved in improper conduct in light of the Antimonopoly Act and also
inappropriate response by Sompo Japan Insurance, Inc. in relation to fraudulent automobile insurance claims byused car dealers. While the Financial Services Agency has already issued an administrative penalty, Mr. Scott
Trevor Davis has continued to provide his opinions to the Board of Directors and the relevant committees, etc. of
the Sompo Holdings, Inc., from the viewpoints of compliance with laws and regulations, ensuring theeffectiveness of group governance, and the importance of root cause analysis in compliance issues. In addition,
after the occurrence of both incidents, he considered and submitted his opinion on various recurrence prevention
measures as Director, chairperson of the nomination committee and compensation committee member.
5. The term of office of the respective nominees is as of the close of this Shareholders’ Meeting.
6. If Mr. Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto, Mr. Yojiro Shiba, Ms.
Yoko Suzuki, Ms. Yukari Kobayashi, Mr. Yasuhiro Nakajima, Mr. Akira Matsuda and Mr. Tsuyoshi Yoshimi are
appointed as the Members of the Board, the Company will enter into an agreement with each of them that limits
his/her damage compensation liability of Paragraph 1 of Article 423 of the Companies Act, pursuant to theprovision in Paragraph 2 of Article 25 of the Articles of Incorporation of the Company based on Paragraph 1 of
Article 427 of the Companies Act. The maximum amount of his/her liability based on said agreement shall be thehigher of either 10 million yen or the minimum liability amount prescribed in Paragraph 1 of Article 425 of theCompanies Act.
7. The Company has entered into a directors and officers liability insurance agreement provided for in Paragraph 1
of Article 430-3 of the Companies Act with an insurance company, insuring Members of the Board, Executive
Officers, and Vice President and Senior Officers to cover any liability or dispute resolution costs that may result
from claims for damages related to the performance of their duties. However, certain exclusions apply, including
for damages arising from actions taken with the knowledge that they violate laws or regulations. The insurance
premiums are fully borne by the Company. If this proposal is approved as originally proposed and any nominees
are appointed as Members of the Board, the Company plans to insure them under the insurance agreement. The
Company plans to renew the insurance agreement in the future.
8. If this proposal is approved, each of Nominating, Audit and Compensation Committees is scheduled to becomposed of the following members, respectively.
Nominating Committee:
Mr. Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto
Audit Committee:
Mr. Yojiro Shiba, Ms. Yoko Suzuki, Ms. Yukari Kobayashi, Mr. Yasuhiro Nakajima, Mr. Akira Matsuda,
Mr. Tsuyoshi Yoshimi
Compensation Committee:
Mr. Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto

15

(Reference)[Fundamental Policy on the Structure of the Board of Directors and the Roles Particularly Expected of Membersof the Board]
Guided by our mission of “Serving Society with Superior Quality,” the Company put forth a vision of “Toward
2050, Bridgestone continues to provide social value and customer value as a sustainable solutions company.”
To achieve this, the Company has positioned sustainability at the core of management and formulated a Mid-Long
Term Business Strategy for gaining a competitive advantage by creating both social value and customer value,
engaging in management led by this strategy.
The Company has created an overall-balanced Board of Directors whose human resource portfolio encompasses
diverse perspectives to supervise the appropriate execution of the Company’s Mid-Long Term Business Strategy
as it seeks to increase corporate value.

* Terms of office are current as of March 26, 2024
* Outside and Independent Directors are listed in Japanese alphabetical order* Committee members are scheduled to take office on March 26, 2024
* ○ symbols indicate up to top three priority fields in which each Member of the Board is expected to make the greatest
contributions* Independent Outside Director ratio: 66.7% (8 out of 12 Directors)* Female Director ratio: 25% (3 out of 12 Directors)

16

(Reference)

As of February 202417

[Nominating Policy for Appointment to the Board]
The Company considers the character and judgment of each individual, their experience and expertise and theirlevel of dedication and commitment to performing the duties expected of a member of the Board.
(Outside Directors)
The Company takes into account the following:(1) The candidate’s expertise, experience and ability to make judgments from an independent perspective.
(2) The candidate’s absence of connections with the Company that would undermine their independence fromthe Company.**Specifically, the candidate’s ability to meet the conditions for independence as set out in the Company’s“Guidelines for Determining Whether Outside Directors are Sufficiently Independent”(Members of the Board other than Outside Directors)
The Company takes into account the following:(1) The candidate’s scope of knowledge and experience regarding the business and its operations.
(2) The level of the candidate’s ability to formulate business plans and targets based upon an insightful
understanding of the changing business environment.
[Guidelines for Determining Whether Outside Directors are Sufficiently Independent]
In order to ensure that Bridgestone Corporation (“Bridgestone”) achieves the objectivity and transparency
necessary for appropriate corporate governance, it is best that outside directors be as independent as possible.
Bridgestone has accordingly established these guidelines concerning the requisite independence of Outside
Directors. If any of the following items applies to an Outside Director (or to a candidate for such position. The
same applies hereafter), they shall be deemed to lack the required level of independence. A person who:
1. In the past was an Executing Person of Bridgestone or a consolidated subsidiary of Bridgestone(collectively, the “Bridgestone Group”).1
2. Is a major shareholder of Bridgestone.2
3. Is an Executing Person of a company or entity to which one of the following is applicable:(1) A major supplier or customer of the Bridgestone Group.3(2) A major lender to the Bridgestone Group.4(3) A company or entity of which the Bridgestone Group holds 10% or more of the voting shares.
4. Is a certified public accountant with an auditing firm that is an independent auditor of the BridgestoneGroup.
5. Is a professional, such as a consultant, accountant, tax accountant, lawyer, judicial scrivener, or patent
attorney who has received a large amount5 of money or other assets from the Bridgestone Group.
6. Is a person who has received a large amount of donation from the Bridgestone Group.6
7. Is an Executing Person of another company, which position constitutes an interlocking director or
corporate auditor position7 for the Outside Director.
8. Has a close relative8 to which any of the above items 1 through 7 applies (but other than with respect toitem 4 or 5, limited to a significant person9).
9. Is a person to which any of the above items 2 through 8 has applied within the last 5 years.
10. Notwithstanding the above, is a person with respect to which any other particular factors exist that could
create a conflict of interest with Bridgestone.

18Notes:1 This means one who is currently an executive director, executive officer, corporate officer or othersimilar person or employee (each, for purpose of these Guidelines, an “Executing Person”) or who has
been an Executing Person of the Bridgestone Group at any time in the past.
2
A “major shareholder” shall mean a shareholder holding 5% or more of the voting shares, either intheir own name or a third party’s name, as of the end of Bridgestone’s fiscal year. If the major
shareholder is an organization such as a company (or other legal entity) or partnership, it shall mean an
Executing Person of the organization.
3 A “major supplier or customer” means a supplier or customer of the Bridgestone Group products
whose annual total transactions with the Bridgestone Group exceeds 2% of Bridgestone’s consolidated
aggregate sales or 2% of the consolidated aggregate sales of the other party. In addition, automobile
manufacturers which are customers of the Bridgestone Group tire products, and synthetic rubber
manufacturers and steel cord manufacturers which are suppliers to the Bridgestone Group are
considered major suppliers or customers regardless of actual annual transaction amounts.
4
A “major lender” means a financial institution from which the Bridgestone Group receives loans
where the outstanding loan amount as of the end of Bridgestone’s fiscal year exceeds 2% of
Bridgestone’s consolidated gross assets or 2% of the financial institution’s consolidated gross assets.
5 “Large amount” means the occurrence of either of the following in response to the professional’s
provision of services:(1) In the event that the professional is providing services to the Bridgestone Group as anindividual, the receipt by the professional from the Bridgestone Group of compensation(excluding compensation for services as a director or corporate auditor) of an amountexceeding 10 million yen per year.
(2) In the event the professional services are provided by an organization such as a company (orother legal entity) or a partnership, the receipt by the organization from the Bridgestone Groupof the total amount of compensation exceeding 2% of the annual aggregate income of theorganization. Even if not more than 2%, if the organization receives more than 10 million yen
per year as compensation for services in which the professional was directly involved, it isconsidered a “large amount.”
6 This means the recipient of a donation exceeding 10 million yen per year from the BridgestoneGroup. If the recipient is an organization such as a company (or other legal entity) or a partnership, any
member of the organization who is directly involved with the research, education or other activity
related to the donation.
7 “Interlocking director or corporate auditor position” means an Executing Person of the BridgestoneGroup who is an Outside Director or Corporate Auditor for another company, where an Executing
Person of such other company is also an Outside Director of Bridgestone.
8 A “close relative” means a spouse or a relative within two degrees of family relation.
9 A “significant person” means a director, executive officer, corporate officer or an Executing Person
who is a division manager or above, or an Executing Person with authority similar to any of theforegoing.

19

Business Report(January 1, 2023 through December 31, 2023)

I. CURRENT STATUS OF THE BRIDGESTONE GROUP
1. Business Developments and Results of Operations
The Group has worked in line with its Mid Term Business Plan (2021-2023), released in February
2021, with the aim of accomplishing its vision of “continuing to provide social value and customer
value as a sustainable solutions company toward 2050” under its mission of “Serving Society with
Superior Quality” of the Bridgestone Essence. Guided by the mission and vision, we have set the“Bridgestone E8 Commitment” as our corporate commitment to support a sustainable society with
our employees, society, partners and customers. This is the focus and vector of value creation. We
are moving forward along the path of the “2030 Long Term Strategic Aspiration,” which depicts thevision we want to achieve in 2031, the 100th anniversary of our founding.
Amid a more severe business environment than expected, on the backdrop of a slowdown and aslump in demand for replacement tires for trucks and buses in the U.S. and Europe that had beenremarkable since the second half, in the fiscal year ended December 31, 2023, we focused on“restructuring of the earning power” in the premium tire business, aiming to return to strong
Bridgestone, which is capable of responding to changes, by “focusing on execution and delivering
the results” of the Mid Term Business Plan (2021-2023) in its final year. We also focused on
carefully selecting and making strategic growth investments, with emphases on strengthening
premium tire production in the harsh business environment, and “laying foundation for the future.”
In the premium tire business, the overall demand environment for replacement tires waschallenging, and amid a year-on-year decline in global sales volume, we further strengthened our
focus on the premium domain. With respect to replacement tires for passenger cars, we promoted
strategic price management, concurrently working to reduce losses and unprofitable areas, mainly
by expanding sales of high-rim diameter tires, which have relatively little impact on environmental
changes and maintained stable demand. At the same time, we launched high-performance, highvalue-added Dan-totsu products to thoroughly improve sales mix. Amid a situation where demand
for new tires is becoming more severe than expected, in the case of replacement tires for trucks
and buses in North America, where we have strong business bases such as high productcompetitiveness and service base network, we were able to improve our share of new and retread
tires in the premium domain by combining retread tires. In addition, with the foundation of Dantotsu products, tires for mining vehicles, which have demonstrated the strength of respect for being
on-site, such as tire maintenance services, and achieved solid sales and market share gains,
underpinned the company’s overall performance in a challenging business environment. On theother hand, in the European business, which has been a management issue for the Group in terms
of profitability and business foundation, weakness in the sales channel base and other factors
emerged amid a difficult business environment, and there remain issues to be addressed for
improvement. In the Americas business, in Argentina, where Financial Reporting inHyperinflationary Economies (Note) was applied, the impact of a large devaluation of the currency
significantly pushed down business results, which negatively impacted company-wide
performance.
In light of the above, with regard to business results for the fiscal year ended December 31, 2023,
a lack of response to address changes has become apparent, and it has become urgent for us toproficiently manage indicators to monitor change and quickly adapt to changes so that we can
improve the quality and speed of the PDCA (Plan, Do, Evaluate, Improve) cycle in the coming fiscal
year. This has resulted in a challenge for a “strong Bridgestone capable of adapting to change,”
which was set as the goal at the beginning of the fiscal year. Revenue increased year-on-year due
in part to the tailwind of favorable foreign exchange rates, an improved sales mix that was helpedby sales of replacement premium tires for passenger cars (high-rim diameter tires (18 inches ormore), high-profit premium tire brands in each region, etc.), and a year-on-year increase in thesales volume of tires for mining vehicles, despite a decline in the sales volumes of replacement
tires for trucks and buses in the U.S. and Europe, for which there was a sharp drop in demand andthe impact of applying Financial Reporting in Hyperinflationary Economies for Argentina. Adjusted
20

operating profit including foreign currency effects declined year on year due to significant effects ofincreased processing costs resulting from deteriorated plant operation owing to a decrease in sales
volume as well as a decrease in profit associated with applying Financial Reporting inHyperinflationary Economies for Argentina, despite our continued efforts to offset negative effectsof costs and expenses stemming from raw material prices and inflation (energy and labor costs,etc.) against improved selling price and sales mix, carry out through cost management andimprove productivity in production sites. The impact of Financial Reporting in Hyperinflationary
Economies for Argentina on the year-on-year decline in profits was approximately 10 billion yen.
Excluding this impact, profits increased year-on-year. The adjusted operating profit ratio declined
0.6 percentage points from the previous fiscal year to 11.1%, falling short of the previous fiscal
year. We will continue to accelerate our efforts to improve our business structure to respond tochanges.
As a result, the Group’s revenue in FY2023 were ¥4,313.8 billion, a year-on-year increase of 5%;
adjusted operating profit was ¥480.6 billion, a year-on-year decrease of 0.4%; operating profit was¥481.8 billion, a year-on-year increase of 9%; profit before tax was ¥444.2 billion, a year-on-yearincrease of 5%; and profit attributable to owners of parent was ¥331.3 billion, a year-on-yearincrease of 10%.
(Note) IAS 29 Financial Reporting in Hyperinflationary Economies(1) Developments and results by business segment[Japan]
Revenue was ¥1,242.4 billion, a year-on-year increase of 7%, and adjusted operating profit was¥206.5 billion, a year-on-year increase of 37%.
Unit sales of replacement tires for passenger cars and small trucks, and unit sales of tires fortrucks and buses were down year-on-year. On the other hand, in addition to executing strategic
price management, we strengthened our focus on the premium domain by reducing low-marginareas. As a result, the impact of soaring raw material prices and inflation was mitigated by
improved selling prices and sales mix. Revenue and profit increased year-on-year due to anincrease in the sale of tires for mining vehicles and strong exports of passenger car tires and truck
and bus tires to overseas markets, thanks to the tailwind of the depreciated yen.
[China, Asia-Pacific]
Revenue was ¥461.1 billion, a year-on-year increase of 1%, and adjusted operating profit was¥41.6 billion, a year-on-year increase of 4%.
The total unit sales of new vehicle tires and replacement tires for passenger cars and small trucks
were down year on year, while unit sales of tires for trucks and buses were on par with theprevious fiscal year. On the other hand, sales prices in each country in the region improved with
an improved sales mix through a thorough focus on the premium domain. As a result, revenue
and profit increased year on year, supported by the tailwind of depreciated yen.
[Americas]
Revenue was ¥2,080.0 billion, a year-on-year increase of 5%, and adjusted operating profit was¥212.0 billion, a year-on-year decrease of 16%.
In North America, the total unit sales of new vehicle tires and replacement tires for passenger cars
and small trucks remained at the same level as the previous fiscal year on the whole, while unit
sales of tires for trucks and buses fell significantly from the previous fiscal year, due in part to asignificant slowdown in demand. On the other hand, sales prices and sales mix improved steadily.
On the cost front, in addition to the worsening of processing costs due to production adjustments
caused by inflation and a decrease in unit sales, a decline in profit associated with applying
21

Financial Reporting in Hyperinflationary Economies for Argentina had a significant impact. As aresult, revenue increased and profit decreased year on year despite the tailwind of foreignexchange rates.
[Europe, Russia, Middle East, India and Africa]
Revenue was ¥908.5 billion, a year-on-year increase of 4%, and adjusted operating profit was¥25.1 billion, a year-on-year decrease of 62%.
In Europe, unit sales of replacement tires for passenger cars and small trucks, and unit sales oftires for trucks and buses fell sharply from the previous fiscal year. In particular, demand for truck
and bus tires remained sluggish, impacting sales significantly. On the other hand, we responded
to this by pressing ahead with strategic price management and reductions in low profitability
areas, mainly for replacement tires for passenger cars. While sales prices and sales mix have
improved, there was a large deterioration in processing costs caused by inflation in terms of costs,
and production adjustments due to a decrease in unit sales. Despite the tailwind of foreignexchange rates, revenue increased and profit decreased year on year.
(Note) The amounts for segment results include inter-segment transactions that are eliminated in
calculating the consolidated results.

(2) Research and development (R&D)
The Group is taking on the challenge of amplifying the value of our Dan-Totsu products at thecustomers’ tire “use” phase by positioning the premium tire business as a core business andenhancing its linkage with the solutions business. We are also promoting various initiatives tocreate social value and customer value in the chemical and industrial products and diversified
products business, as well as in the exploratory business. Technology innovations will be an effort
to enhance our strengths in amplifying such value. The Group’s technology innovations will be
driven by the three forms of “mastering”: “mastering rubber,” “mastering road contact,” and“mastering manufacturing.” We will drive R&D activities centered around these three forms of“mastering” and accelerate innovation by combining our strong “real” capabilities, such astechnologies, findings, and know-how on rubber and tires cultivated on-site, with “digital” leading to
the development of “Dan-Totsu products” and “Dan-Totsu solutions.”
To promote these technology innovations, in 2022, we redeveloped our R&D base in Kodaira,Tokyo, and built the “Bridgestone Innovation Park,” a global innovation hub. We are acceleratinginternal and external co-creation activities by utilizing the innovation center “B-Innovation” and thetest course “B-Mobility,” transferring part of the head office functions for the Japan tire business to
the Kodaira area in April 2023, and launching new initiatives under the R&B (Research andBusiness). Many partners have visited our innovation park since its opening, resulting in the birth ofvarious joint research and co-creation activities. We have also been developing a corporate culture
to value employees’ independence by introducing the Activity Based Working (ABW) concept,
which allows each employee to design their diverse work style to maximize the output of individual
employees and their team. With Bridgestone Innovation Park at the core, the Group’s innovationsites, “Digital Garage” in Europe and “Mobility Lab” in the U.S., will collaborate while drawing on
their respective strengths to focus on value creation.
In our premium tire business, we are working on the evolution of “ENLITEN,” the product designbase technology for the Group’s premium tire business. We have positioned ENLITEN technology
as a “new premium” that creates unique value for the Bridgestone Group, and are working toestablish and evolve this technology not only with the aim of improving the performance of
conventional tires in all directions, but also to realize “ultimate customization” to meet individual tire
performance needs and provide added value for each product, market, and customer. For
example, “TURANZA EV,” the Group’s first EV tire released in North America in 2023, wasdesigned and developed after carefully listening to the tire needs of customers and retailers. To
address the issue of premature wear, which has been a challenge for EV tires, we have improved
22

wear resistance by approximately 50% compared to conventional tires. In addition, in response to
the growing awareness toward sustainability, we have increased the ratio of recycled andrenewable resources used in raw materials for tires to 50%. In Japan, we launched “REGNO GR-X
III” in February 2024, our first premium brand product equipped with ENLITEN technology forpassenger car replacement tires. REGNO GR-X III offers enhanced spatial quality and refined
driving performance by improving on the basic performance required of tires, such as quietness,ride comfort, and driving performance, and also contains a higher ratio of recyclable and renewable
resources, contributing more to sustainability than conventional tires.
Going forward, we will evolve our ENLITEN technology in alignment with the reinforcement of oursustainable global motorsports activities. In 2023, we developed and supplied the first motorsports
tires using ENLITEN technology at the 2023 Bridgestone World Solar Challenge, a world-leading
solar car race for which we are the main sponsor. In addition to increasing the ratio of recycled andrenewable resources to 63%, roughly double that for the tires supplied for the previous race held in
2019, we also made significant improvements, such as reducing the weight of the tires, a must forsolar cars, and increasing durability to withstand the racing environment of about 3,000 kilometersacross Australia. We are also promoting various activities in Europe. For example, we asked for
feedback from customers who used our tires using ENLITEN technology at the Bridgestone FIA
ecoRally Cup, a rally event on public roads in which ordinary drivers participate in zero-emission
vehicles, thereby gaining insight that will help in the planning of our next product. In addition, we
have been selected as the future sole tire supplier of the ABB FIA Formula E World Championshipfrom the 2026-2027 season, and as such we will continue to evolve our ENLITEN technology witha view to supplying tires for this event. Through these global sustainable motorsports activities, wewill use racing as a “mobile laboratory” to refine technology in extreme conditions, evolving andconnecting this innovation to the development of replacement tires for the future under the concept“From Circuit to Street.”
We have also positioned our “MASTERCORE” technology, which is adopted in off-the-road tires formining vehicles, as a “new premium” alongside ENLITEN technology. MASTERCORE combines
our proprietary new technologies including materials, structure, and manufacturing technologies
such as in-house steel cords to realize outstanding durability performance. Going forward, we willcontinue our efforts to develop high-value-added tires for mining vehicles.
Furthermore, Bridgestone Commonality Modularity Architecture (BCMA), the technology that
supports “ultimate customization” leveraging ENLITEN technology, divides the tire into threemodules in the development and production processes: the carcass, skeleton of the tire; the belt,
which reinforces the tire; and the tread, which makes up the tire surface. Module 1 (carcass) andModule 2 (belt) are shared among different products to simplify the value chain from development
to production and sales, whereas Module 3 (tread) is used to customize performance anddifferentiate products. We can improve productivity and optimize costs by streamlining the numberof products and sizes and the development and manufacturing processes. Furthermore, by sharing
modules, tire production can be flexibly adapted to each region’s market environment and sales
strategies, thereby enabling the maximization of sales opportunities and the streamlining of
inventory management and distribution costs, including supporting the manufacturing operations ofplants close to demand areas. We will carry out such efforts to create positive effects across theentire value chain.
Moreover, to evolve manufacturing that can provide a sustainable and stable supply of premium
tires, we will systematically promote the shift to green and smart factories. In alignment with thepromotion of BCMA, we will strive to create social value and customer value by improving the
productivity and efficiency of development and manufacturing processes and reducing
environmental impact across the entire value chain.
In the solutions business, our growth business, we are developing tire wear prediction solutions
that utilize digital technology to analyze the usage data of tires for trucks, buses, mining vehicles,
and aircraft. In addition, based on co-creation with customers, we are also taking on the challengeof evolving this into tire durability prediction solutions that propose ways to use tires more safely,
efficiently, and therefore longer, as well as how to efficiently operate the vehicle by building AI23

driven proprietary algorithms that combine tire-related data with vehicle operation status data. For
example, in truck and bus tire solutions, we are expanding our “Fleetcare” service, which combines
premium tires, tire maintenance, retreading, and online fleet management in an optimal packagethat meets the individual needs of customers, from Europe to North America. In addition, we are
expanding individual management of tires across their lifecycle from new products to maintenanceand retread to the global market using Radio Frequency Identification (RFID), an automatic
recognition technology that enables contactless reading and writing of information using wirelesscommunication. We are also developing a next-generation RFID system for tires that maximizes
data communication performance through co-creation with TOPPAN Edge Inc.
As for the solutions to off-the-road tires for mining vehicles, we have combined Bridgestone
MASTERCORE, our Dan-Totsu product, with digital tools to monitor vehicles and tires, as part ofour efforts to develop mining solutions that optimize mining operations.
Through co-creation with Tier IV, Inc., which provides solutions necessary for developing andoperating safe autonomous vehicles with peace of mind, we will also contribute to the evolution ofmobility, such as in the R&D and practical application of autonomous driving.
Turning to our sustainability efforts as an initiative to achieve a sustainable and stable supply ofnatural rubber, improve their productivity, and diversify supply sources, we are creating
technologies through co-creation with various partners. Specific initiatives include the developmentof an optimization system for para rubber tree plantation that utilizes big data, efforts for stably
increasing the productivity of natural rubber without expanding the plantation area, working toachieve practical use of natural rubber derived from the guayule plant, which can be grown in arid
regions, with the aim of diversifying natural rubber sources, and developing a technology toefficiently and stably increase guayule seedlings from high-quality seeds.
Based on co-creation, we also focus on promoting Digital Transformation (DX). We are also
training and hiring digital talent, including data scientists who can analyze and develop advanced
AI and algorithms. Through a wide range of exchanges in the digital field, including the launch ofjoint research on rubber simulation fundamental technology at the “Bridgestone × Tohoku
University Co-creation Lab” established on the Tohoku University campus, we will foster digitaltalent and promote Bridgestone’s DX by deepening collaboration with new partners. In addition, thenext-generation synchrotron radiation facility NanoTerasu is slated to commence operations in
2024. We will accelerate the development of innovative materials by fusing various data andsimulations generated by this facility.
In addition, we are participating in an international space exploration mission with the Japan
Aerospace Exploration Agency (JAXA) and Toyota Motor Corporation, carrying the dreams of
mankind as we take on the challenge of the harsh environment of the moon’s surface. For thismission, we are conducting research and development on tires for use in manned lunar rovers.
In our chemical and industrial products and diversified products businesses and exploratory
business, we launched the “EVERTIRE INITIATIVE,” and have been advancing a joint project with
ENEOS Corporation for the social implementation of chemical recycling technologies for used tires.
This project, supported by the “Green Innovation Fund” established by the Ministry of Economy,
Trade and Industry, aims to contribute to the improvement of resource recycling and carbon
neutrality in the value chain of the tire and rubber, and petrochemical industries through co-creation
combining the knowledge and technological capabilities of companies and academia. In June
2023, we installed test units at the Bridgestone Innovation Park to promote the social
implementation of chemical recycling technology that enables precise pyrolysis of used tires, andstarted an initiative to produce tire-derived oil and recovered carbon black through the pyrolysis ofused tires.
In our soft-robotics business, we started a paid demonstration experiment on piece-picking(carrying out items one by one) using a soft robot hand, and have been making proposals to thelogistics, food, and factory automation industries. We are also stepping up efforts to commercialize
the soft-robotics business on a small scale through co-creation with various partners, including24

capital and business alliances with startups. In addition, we established “Softrobotics Ventures” in
2023, turning the soft-robotics business into an internal venture. Through technology development
and the exploration of commercialization, we will work to enhance the creativity of internal talent asa good example of demonstrating our entrepreneurship and creating a place where our diverse
talent can shine.

2. Capital Investment
When considering capital investment, the Group carries out strategic investment activities while
limiting investees to a selected few with an eye towards maximizing return on capital investment.
Based on this approach, for the fiscal year 2023, we focused on laying the foundation for future
growth even amid the tougher-than-expected business environment. We carried out investments
aimed at strengthening production to promote our focus on premium areas and to build our IT
infrastructure, etc. As a result, capital investment totaled ¥420.0 billion.
On a per-segment basis, the Group’s capital investment consisted of: Japan: ¥74.2 billion; China,
Asia-Pacific: ¥39.8 billion; the Americas: ¥182.9 billion; Europe, Russia, the Middle East, India, andAfrica: ¥73.3 billion; Others: ¥49.8 billion.

3. Financing
The Group raised funds through long-term loans and other means in order to diversify its funding
sources and to secure long-term stable funds.
At the end of fiscal year 2023, total interest-bearing debt (see note below) was ¥830.2 billion, an
increase of ¥63.0 billion compared to the end of fiscal year 2022 mainly due to the effect of foreignexchange rates.
Note: Interest-bearing debt includes corporate bonds, borrowings, and lease liabilities.

4. Management Tasks
The changes in the Group’s business environment continue to occur with complexity at anaccelerating pace in all aspects, including international relations, politics, economy, environmental
issues, and technological innovation. Also, sustainability initiatives including climate change
countermeasures are becoming more and more important. These efforts are linked to the CASE
and MaaS movements in the mobility industry, such as the acceleration of the shift to EVs anddigitalization. In this business environment, structural changes of the mobility industry, such as the
rapid growth of emerging EV manufacturers, continue to progress, and the value demanded of tires
continues to change significantly. In order to survive these unpredictable times, where change has
become commonplace, and to continue to provide social value and customer value as a“sustainable solutions company,” as stated in our vision, the Group has set the “2030 Long Term
Strategic Aspiration” announced in 2022 as a roadmap toward 2031, the 100th anniversary of its
founding. As part of this journey, we are accelerating our transformation to a resilient “excellent”
Bridgestone that transforms change into opportunity, unaffected by continuous change andremaining robust and flexible like rubber.
Under our Mid Term Business Plan (2021-2023), which reached its final year in 2023, we havetaken steps to return to a “strong” Bridgestone capable of adapting to changes in the businessenvironment. In the premium tire business, which is our core business, we made investments to lay
the foundation for future growth, including in investments to strengthen the production of premium
tires such as passenger car high-rim diameter (HRD) tires and off-the-road tires for mining
vehicles, as well as of retread tires, and to place an even greater focus on premium areas.
Conversely, in the solutions business, which we have positioned as a growth business, we worked
to achieve growth by deepening the linkage with the premium tire business. However, from theperspective of potential growth and profitability, we decided to discontinue some solutions forpassenger car tires in Europe and the U.S., and other issues remain for future growth. In light of25such results for the Mid Term Business Plan (2021-2023), in 2024, we will swiftly implement PDCA
(Plan-Do-Check-Act) cycles to ensure continuous improvements and reinforce the management
quality and working & business quality.
In our new Mid Term Business Plan (2024-2026), with 2024 as the first year, we will continue
driving management based on three axes, which we have continued to do since the Mid TermBusiness Plan (2021-2023). The first of these is to “Tackle past negative legacies squarely without
delay,” the second is to “Focus on execution and delivering results for immediate issues,” and thethird is to “Lay foundation for future growth” with the year 2030 as a milestone. In addition, we will
pursue operational excellence across our entire value chain by constantly striving to improve
productivity and perform high-quality work, persisting in ensuring management quality and working& business quality improvement. To this end, we have established “Passion for Excellence” as ourmanagement approach and are pushing forward with initiatives on a global scale. Furthermore, wehave set four basic business scenarios for our Mid Term Business Plan (2024-2026) to focus moreon value creation. The first is to “Create good business quality,” the second is to “Create goodtires,” the third is to “Create good business,” and the fourth is to “Create new business sowing good
seeds for the future.”
Our top priority for 2024 is to “Create good business quality.” By persisting in ensuring themanagement quality and working & business quality improvement, we will return to a strong
Bridgestone capable of adapting to change, which we initially aimed to achieve by 2023. We will
pursue operational excellence on a global scale by placing further focus on respecting being onsite (Genbutsu-Genba) and performing steady PDCA while sticking to basics, as well as combining
continuous improvement and innovation, which is part of Bridgestone’s DNA. To make thispossible, we have established a more advanced “glocal” management structure, effective January
1st , 2024. Our business has been divided into two regions: Bridgestone West, centered mainly in
the U.S. and Europe, and Bridgestone East, centered mainly in Japan and the rest of Asia. Further
down the structure, we have set 47 “areas” according to the characteristics of the region, market,
and business, thereby establishing a system that focuses on creating value on-site. In the premium
tire business, we will pave the way for future growth by reorganizing and restructuring our businessto focus more on premium areas, such as reducing unprofitable businesses and reorganizing andrestructuring the retail business, especially in Europe, a region with low profitability, to strengthen
our earning power.
Moreover, after returning to a strong Bridgestone capable of adapting to change in 2024, we willbuild a foundation for growth with an eye to achieving steady growth from 2025 to 2026 in line withour basic business scenarios. At the core of this strategy is “Create good tires” and “Create goodbusiness.”
In “Create good tires,” we will expand the use of Dan-Totsu products that contain ENLITEN, ourbase technology for product design that we have positioned as a “new premium,” from tires for EVs
and other new vehicles to replacement tires. We will also accelerate value creation by promoting
the introduction of Bridgestone Commonality Modularity Architecture (BCMA), a manufacturing
technology that streamlines the manufacturing and development processes and optimizes costs.
To expand our Dan-Totsu products, we will improve our price position by making efforts to havecustomers recognize the value of these products. We will also continue reinforcing efforts toincrease our sales and market share of Bridgestone MASTERCORE, a Dan-Totsu product adopted
in off-the-road tires for mining vehicles, and premium tires for passenger cars, trucks and buses.
As for “Create good business,” we aim to amplify the value of Dan-Totsu products during
customers’ tire “use,” as well as evolve our sales and service channels by expanding our numberof retail sites and enhancing the quality of services offered. In particular, in Japan and the U.S., weplan to provide high-quality services and solutions by working closely with each customer on-site tosolve their problems. Alongside this, we will strengthen our “real” sites that provide high-quality
services and solutions, as well as our services that utilize digital technologies, such as ecommerce. In addition, we will embark on new corporate branding activities centered onsustainable global motorsports. Through these activities, we plan to continue supporting thedevelopment of motorsport culture. We will also express our passion for racing and our position to26

“a challenge for excellence,” which is emphasized in our “Passion to Turn the World” message. In
doing so, we aim to build a sustainable premium brand while resonating with many stakeholders,
thereby enhancing corporate value.
Finally, in the fourth scenario, “Create new business sowing good seeds for the future,” we will lay
the foundation for achieving our 2030 Long Term Strategic Aspiration, including the period of thenext Mid Term Business Plan starting in 2027. First, in solutions for industrial products (tires formining vehicles, aircraft, trucks and buses), we will embark on evolving our tire wear prediction
solutions to tire durability prediction solutions by building unique algorithms that make full use of“digital” and our “real” strengths cultivated on-site, such as Dan-Totsu products and other services.
In tire solutions for mining vehicles and aircraft, we will promote co-creation with customers tocreate value. As for tire solutions for trucks and buses, we will expand the Fleetcare service weoffer customers, particularly in the U.S. This service combines premium tires, retreading,maintenance, and fleet management solutions under a single package. We will develop thesebusinesses as our mobility tech business.
In the chemical and industrial products and diversified products businesses, we will focus on areas
where we can leverage our strengths and enhance our hydraulic hose business, etc. In the
exploratory business, we will push forward with efforts to move from technology development
through to commercialization for the recycling business, soft-robotics business, and guayule
business.
With regard to sustainability, which is at the core of our management and business, we will
endeavor to evolve Bridgestone’s unique sustainability business model that ensures the link
between business model and sustainability initiatives to realize carbon neutrality and circular
economy across the value chain – “produce and sell” and “use” of products, and their “renew” to
raw material.
Particularly on the environmental front, we set our long-term environmental vision toward 2050 in
2012, and “Milestone 2030,” the mid-term environmental targets toward 2030 to realize this vision.
In terms of carbon neutrality, we have set clear-cut targets of reducing CO2 emissions (Scopes 1,2) (Note) by 50% in 2030 compared to our 2011 baseline, and achieving carbon neutrality by 2050.
We estimate an approximate 50% reduction in 2023, above the goal of a 30% reduction. The ratioof renewable energy (electricity) at our global plants, which we are working to increase as part ofefforts to reduce CO2 emissions, is expected to be approximately 60% by 2023, also exceeding thegoal of 50%. We will proceed with initiatives to achieve our goal of 100% by 2030. As for the
reduction of CO2 emissions across the value chain (Scope 3) (Note), we will drive initiatives withthe target of contributing to reducing more than five times the total of Scope 1 and Scope 2
emissions by 2030 (base year: 2020) throughout the lifecycle of our products, services, andsolutions. In order to realize a circular economy, we aim to increase the ratio of recycled andrenewable resources to 40% by 2030 and to achieve 100% sustainable material by 2050.
Regarding the ratio of recycled and renewable resources, we estimate having achieved a ratio of
approximately 37% in 2023. We will continue efforts to evolve our product strategy, including
ENLITEN and retreading, and enhance the utilization of renewable resources in the recycling
business, the natural rubber business, and the guayule business. In addition, during the entire
period of the Mid Term Business Plan (2024-2026), we will further step up our efforts to help
achieve a nature-positive world, such as preventing deforestation and supporting small-scale
farmers. With regards to these sustainability initiatives, by carrying out sustainable global
motorsport activities, we are striving to promote sustainability across the entire motorsport tire
value chain, from raw material procurement to recycling, as quickly as possible. In doing so, we
also aim to evolve into a company with management that is agile and sustainable across the board.
In addition, as the business environment is constantly changing, we will strengthen our structure tocope with global management risk unaffected by change. The Global Management Risk
Committee, which consists of the top management of each regional business, conducts wideranging discussions on management risks and has set three priority management items. Project
teams established for each item will push forward with the efforts to identify possible risks to each
item and countermeasures. The first is geopolitical risk. We analyzed the business impact when27

risks occur, considered measures to minimize it, and have begun to implement measures to ensure
employee safety, protect assets, respond to customers, protect corporate and brand image, andconsider and secure alternative sourcing of raw materials. The second item is our response to
TRWP (Tire Road Wear Particles) and 6PPD (a chemical widely used in the tire industry to prevent
degradation). TRWP is the result of friction between the tire and the road surface, and is a mixtureof the tread, which is the surface of the tire, and road pavement materials. In response to TRWP,
which is an industry-wide issue, as an industry leader, the Group is leading tire industry projects
under the World Business Council for Sustainable Development (WBCSD), as well as initiatives byregional industry groups. Furthermore, in collaboration with other industry players and academic
institutions, we are investigating the environmental and health impacts of tires throughout theirlifecycle. As we advance, we will continue driving relevant initiatives, including promotion of longlife products and linkage with the solutions business. Regarding 6PPD, the industry as a whole isengaging with the issue and evaluating alternatives. The third item is our response to cyberattacks.
In the first quarter of 2022, a cyberattack occurred in the Group’s U.S. subsidiary, and we
implemented emergency measures in each region. In the future, to strengthen our response tosuch situations, we established a global cyber security team and will promote fundamental
measures.
With regard to our talent, the driving force behind all of these corporate activities, we aim toreinforce talent investment to increase added value and create a virtuous cycle of value creation
based on improving productivity and creativity. From 2023, we experimented with adding talentcreativity as a global management KPI as a means of tracking progress with these efforts. Even
amid the challenging business environment, we will expand talent investment, and in Japan inparticular, we are working to create a comfortable workplace where diverse talent can shine. These
initiatives include reskilling and digital training programs, conducting the “100-Day Challenge
Program,” a development program to enhance on-site experiences, introducing a FemTech
program to address female-specific health issues using technology, and improving the workplaceenvironment at manufacturing sites. From 2024, we plan to strengthen our initiatives further byofficially adding talent creativity as a global management KPI. We will also promote the evolution of
our corporate culture by linking this to activities related to the enhancement of talent creativity.
Going forward, with the Bridgestone E8 Commitment as the axis and guiding vectors to drive
management while earning the trust of future generations, we will commit to the realization of asustainable society by co-creating value together with various stakeholders, such as society,partners, and customers, achieving both sustainability and corporate growth.
Note: Scope 1 refers to CO2 emitted directly by a company (emissions from boilers at in-house plants, etc.), and Scope 2
refers to indirect emissions from energy sources (CO2 emissions from energy, such as electric power supplied byother companies and consumed in-house). Scope 3 refers to CO2 emissions during the stages of procurement ofmaterials, logistics, use by customers, and disposal or recycling in the product lifecycle.

28

TOPICS
Bridgestone E8 Commitment

Bridgestone E8 Commitment
The Group established the “Bridgestone E8 Commitment,” our corporate commitment, which
embodies our vision: “Toward 2050, Bridgestone continues to provide social value and customer
value as a sustainable solutions company.” It will serve as the axis and guiding vectors in thetransformation to realize our vision.
The Group believes that the Earth has been entrusted in our care by future generations of children.
With the Bridgestone E8 Commitment as the “axis to drive management while earning the trust of
future generations,” we are committed to the realization of a sustainable society by co-creating 8
Bridgestone-like values starting with the letter “E” (Energy, Ecology, Efficiency, Extension,
Economy, Emotion, Ease, and Empowerment) through Bridgestone-like purpose and process,together with employees, society, our partners and customers.

29

Bridgestone’s Commitment to Sustainable Global Motorsports:
Taking “Challenge for Excellence” to the Next Stage
Bridgestone positions motorsports activities, marking its 60th anniversary in 2023, as a starting
point as a tire manufacturer. Since participating in domestic motor sports from the first JapaneseGrand Prix in 1963, we have been challenging various motorsports on a global basis, including
making a return to the INDY500 and INDYCAR® Series in 1995, F1® in 1997, and MotoGP™ in 2002,
and supported the global motorsports industry from the ground up at the top of the world. We haverefined our “Passion for Excellence” through the “challenge for excellence” racing provides―ourpassion for pursuing excellence in every moment, our technological capabilities, manufacturing and
R&D power, global brand power, and talent. The focus in these areas has helped Bridgestone evolve,
making up the foundation of the present-day premium tire business. Marking the 60th anniversary ofthese motorsports activities, Bridgestone will return to its origin and evolve its activities to the nextstage of sustainable global motorsports with sustainability at the core, based on our core passion formotorsports. Bridgestone has developed a new message, “Passion to Turn the World,” to illustrate
our passion. The message also represents our passion to enjoy and win races, “challenge forexcellence,” accelerate innovation, and further support a sustainable mobility society together with
our partners through motorsports.

30

In sustainable global motorsports, using racing as a “mobile laboratory,” the Company will refine
our technology in extreme conditions, evolving and connecting this innovation to developing
replacement tires for the future under the concept of “From Circuit to Street.” The focal point of these
efforts will be ENLITEN®, our base technology for product design and our “new premium in the EVera.” Through ENLITEN, which realizes “ultimate customization,” we will strive to enable cars anddrivers to maximize their performance while refining ENLITEN technology and transferring it toreplacement tires, thereby expanding value creation. By demonstrating Bridgestone’s spirit andpassion for embracing the ultimate challenge through racing, we also aim to foster empathy and trust,thus evolving from a global premium brand to a “sustainable premium” brand. In addition, withmotorsports as a starting point, we will accelerate sustainability throughout the entire value chain as
swiftly as possible. We will also promote efforts to evolve our management capable of responding
flexibly and quickly to change on a company-wide level.
In terms of specific sustainable global motorsports activities, in addition to the Bridgestone World
Solar Challenge, which we have supported for many years, and the Bridgestone FIA ecoRally Cup,in which regular drivers participate in zero-emission vehicles, Bridgestone has been selected as thesole future tire supplier for the ABB FIA Formula E World Championship from the 2026-2027 season,
marking our first return to an FIA World Championship in around 15 years since our final season for
F1® in 2010.
By promoting these global activities, Bridgestone has always been and will always be committed
to motorsports with boundless passion.

31

Softrobotics Ventures
In 2023, Bridgestone’s soft-robotics business became Softrobotics Ventures, an in-house venture
where diverse talent can come together, demonstrate their entrepreneurial spirit, and shine. Under
the slogan “Soften the future,” we will strive to “Evolve robots from tools to our partners for the futureof human and robot co-existence” by taking on various challenges. Through co-creation with external
partners, we have been leveraging our expertise in the development and production of tires andhoses to promote the small-scale commercialization of soft-robotics, which are flexible robots thatcan cooperate with humans using artificial muscles made of rubber (rubber actuators). In “TETOTE,”
our first soft-robot hand model, we combined Ascent Robotics’ AI software to create a piece-picking
robot that can firmly grip a variety of objects. We will promote value creation not only in the logistics
industry but also in other industries, such as food and manufacturing.
In addition, TETOTE received the GOOD DESIGN AWARD 2023, sponsored by the Japan
Institute of Design Promotion, while our soft-robot hand concept model was selected for the Gold
Award 2023, the highest award of the globally renowned iF DESIGN AWARD 2023, enabling manycustomers to learn about the existence of our soft-robotics.
Moreover, as an entirely new type of robot, we unveiled prototype “umaru,” a robot that immerses
your body and moves your mind, at the International Robot Exhibition 2023. It is an experiencebased form of soft-robotics that allows visitors to let themselves go in their own way on a bed ofartificial rubber muscles woven together. We also held our first event for general consumers at b8ta
Tokyo – Shibuya, an experience-based store, for a limited time leading up to Valentine’s Day. Basedon the concept of “Muscles where emotions dwell,” participants were able to experience this throughsoft technology by holding an artificial rubber muscle with their feelings and having the multiple
artificial rubber muscles move accordingly.

TETOTE, our soft-robot hand that received the GOOD DESIGN AWARD 2023

32

Diverse talent play an active role, particularly young employees demonstrating entrepreneurship33

5. Assets and Operating Results
Item*J-GAAP inparentheses

Unit

Revenue(Net sales)
Adjusted
operating profit

Yen inmillions

101st
FY 2019
J-GAAP

101st
FY 2019
IFRS

102nd
FY2020IFRS

3,525,600 3,507,243 2,695,224

103rd
FY2021IFRS

104th
FY2022IFRS

105th
FY2023IFRS

3,246,057 4,110,070

4,313,800

Yen in-343,122

207,443394,340

482,629

480,602

326,098

349,336

62,488376,799441,298

481,775

292,598

240,111(23,301)

394,037

300,305

331,305

404.95332.31(33.09)559.56432.20483.994,574,892 4,962,203

5,427,813

millions
Yen inOperating profit
Profit or loss
attributable toowners of parent(Profit or loss
attributable toowners of parent)

millions

Yen inmillions

Basic earnings orloss per share
Yen(Net income pershare)
Total assets
Yen in(Total assets)
millions

3,946,505 4,277,016 4,189,327

Notes 1. The Group prepares its consolidated financial statements based on International Financial ReportingStandards (IFRS) from fiscal year 2020. Figures for fiscal year 2019 reclassified under IFRS are stated
together for comparison.
2. Adjusted operating profit is obtained by adjusting indicators by certain items.
Adjustments: Business/plant restructuring expenses and income, gain on reversal of impairment losses on
fixed assets, impairment loss, loss on disaster, insurance claim income and other one-off andsubstantial income or loss.
Adjustments are determined based on the notion that management provides effective information on theGroup’s performance for comparison and that they appropriately reflect the method business is managed.
Adjusted operating profit is not defined under IFRS, so it is not necessarily comparable with indicators withsimilar names of other companies.
3. Basic earnings per share (net income per share) is calculated using the average number of shares during
each period.
4. On March 31, 2021, Firestone Building Products Company, LLC, the Company’s subsidiary, was sold toHolcim Participations (US) Inc. Firestone Building Products Company, LLC has thus been categorized as
discontinued operations. Accordingly, the amounts of revenue, adjusted operating profit, and operating profit
for fiscal year 2020 have been reclassified to present the respective amounts of continuing operations,excluding the discontinued operations.
5. On December 10, 2021, the Company decided to newly establish a wholly owned subsidiary (hereinafter“Prospira Corporation”) through an absorption-type company split which will succeed the Company’s antivibration rubber business, and after transferring all ownership of the Group’s anti-vibration rubber business to
Prospira Corporation, it would sell all shares of stock in Prospira Corporation to Anhui Zhongding Holding(Group) Co., Ltd. The anti-vibration rubber business has thus been categorized as discontinued operations.
Accordingly, the amounts of revenue, adjusted operating profit, and operating profit for fiscal year 2020 havebeen reclassified to present the respective amounts of continuing operations, excluding the discontinued
operations.
6. On December 10, 2021, the Company decided to newly establish a wholly owned subsidiary (hereinafter“Archem Inc.”) through an absorption-type company split which will succeed the Company’s chemical products
solutions business, and after transferring all ownership of the Group’s chemical products solutions business to34

Archem Inc., it would sell all shares of stock in Archem Inc. to Endeavour United II Investment Business
Limited Partnership, which is organized, managed, and operated by an investment fund Endeavour UnitedCo., Ltd. The chemical products solutions business has thus been categorized as discontinued operations.
Accordingly, the amounts of revenue, adjusted operating profit, and operating profit for fiscal year 2020 havebeen reclassified to present the respective amounts of continuing operations, excluding the discontinued
operations.
7. The Company adopted International Accounting Standards (IAS) 12, “Income Taxes” (revised in May 2021),
from the start of fiscal year 2023. Profit or loss attributable to owners of parent, basic earnings or loss per
share, and total assets for fiscal year 2022 have been retroactively adjusted to reflect this new accounting
standard.

35

(Reference)[Projections for Fiscal Year 2024]
The Group’s operating environment will continue to require careful attention due to various factors such as
fluctuations in exchange rates and the prices of raw materials and feedstock, global economic uncertainty,
and unstable international political conditions.
Amid such an environment, the Group expects to achieve the following overall results by steadily
implementing measures set out by the “2030 Long Term Strategic Aspiration.”
FY2024
projections

AmountYen in billions

Yen in billions

Yen in billions

4,430.0

4,313.8

116.2

3

Adjusted operating
profit

530.0

480.6

49.4

10

Profit attributable toowners of parent

359.0

331.3

27.7

8

Yen

Yen

yen/dollar

135

141

yen/euro

149

152

Revenue
Full-year

Exchange
Rate(Note)

Increase (Decrease)

FY2023
results

Full-year

Ratio
%

%
–

(4)
(2)

In the projections for the next fiscal year, the amount for profit attributable to owners of parent forcontinuing operations only is as follows:⚫

Profit attributable to owners of parent¥359,000 million

Cautionary Notes Concerning Forward-Looking Statements
Forecasts based on our projections and plans for the future in this document contain unpredictableelements that may cause fluctuations. As such, they do not constitute guarantees by the Company of theachievement of those forecasts. Accordingly, actual business results may differ substantially from theCompany’s current assessment.

36

6. Major Subsidiaries
Company

Location

Capital

OwnershipPrimary operations

Bridgestone Tire
Solution Japan Co.,Ltd.

Kodaira,Tokyo

Yen in millions
710

100.0%

Management of domestic saleof tires for replacement
market, sale of tires, anddevelopment and deploymentof solutions business

Bridgestone RetailJapan Co., Ltd.

Kodaira,Tokyo

Yen in millions
300(100.0%)100.0%

Sale of tires and automotiveparts

Bridgestone Diversified
Products Japan Co.,Ltd.

Totsuka-ku,
Yokohama

Yen in millions
400

100.0%

Sale of and work on industrial
rubber products and building
materials

Bridgestone Sports
Co., Ltd.

Chuo-ku,Tokyo

Yen in millions
3,000

100.0%

Manufacture and sale ofsporting goods

Bridgestone Cycle Co.,
Ltd.

Ageo,
Saitama

Yen in millions
1,870

100.0%

Manufacture and sale ofbicyclesBridgestone Mining
Solutions Latin
America S.A.

Sale and related services ofoff-the-road tires for mining
and construction vehicles andconveyor belts, etc.
Sale and related services ofoff-the-road tires for mining
and construction vehicles andconveyor belts, etc.
Management of China andAsia-Pacific tire operations
and sale of tires

Chile

USD in thousands
3,000

67.0%

Bridgestone Mining
Solutions Australia Pty.
Ltd.

Australia

AUD in thousands
7,000

100.0%

Bridgestone Asia
Pacific Pte. Ltd.

Singapore

SGD in thousands
1,623,782

100.0%

Bridgestone (China)
Investment Co., Ltd.

China

USD in thousands
347,665

100.0%

Management of China tire
operations and sale of tires

Bridgestone (Wuxi)
Tire Co., Ltd.

China

USD in thousands
255,040(100.0%)100.0%

Manufacture and sale of tires

Thai Bridgestone Co.,
Ltd.

Thailand

THB in thousands
400,000(69.2%)
69.2%

Manufacture and sale of tires

Bridgestone Tire
Manufacturing(Thailand) Co., Ltd.

Thailand

THB in thousands
6,921,000(100.0%)100.0%

Manufacture and sale of tires

PT Bridgestone Tire
Indonesia

Indonesia

IDR in thousands
10,358,400(54.3%)
54.3%

Manufacture and sale of tires

Bridgestone Australia
Ltd.

Australia

AUD in thousands
205,820(100.0%)100.0%

Sale of tires

Bridgestone Americas,
Inc.

U.S.

USD in thousands
127,002100.0%

Management of Americas
operations

Bridgestone Americas
Tire Operations, LLC

U.S.

USD in thousands
1(100.0%)100.0%

Manufacture and sale of tires

U.S.

USD in thousands
1(100.0%)100.0%

Sale of tires and automotive
components, and automotive
maintenance and repair
services

Bridgestone Retail
Operations, LLC

37

Company

Location

Capital

OwnershipPrimary operations

Bridgestone Bandag,
LLC

U.S.

USD in thousands
1(100.0%)100.0%

Manufacture and sale ofretreading materials andprovision of related services

Firestone Polymers,
LLC

U.S.

USD in thousands
1(100.0%)100.0%

Manufacture and sale ofsynthetic rubber

Firestone Industrial
Products Company,
LLC

U.S.

USD in thousands
1(100.0%)100.0%

Manufacture and sale of air
springs

Bridgestone Canada
Inc.

CanadaCAD in thousands
20,902(100.0%)100.0%

Manufacture and sale of tires
and sale of automotive
components

Bridgestone de
Mexico, S.A. de C.V.

MexicoMXN in thousands
455,998(100.0%)100.0%

Manufacture and sale of tires

Bridgestone do Brasil
Industria e Comercio
Ltda.

Brazil

BRL in thousands
509,788(100.0%)100.0%

Manufacture and sale of tires

Bridgestone Argentina
S.A.I.C.

Argentina

ARS in thousands
201,242(100.0%)100.0%

Manufacture and sale of tires

Belgium

EUR in thousands
2,063,963

100.0%

Management of Europe,
Russia, Middle East, India
and Africa tire operations andsale of tires

PLN in thousands
558,059
PLN in thousands
572,650
EUR in thousands
22,178(100.0%)100.0%(100.0%)100.0%(100.0%)100.0%

Bridgestone Europe
NV/SA
Bridgestone Poznan
Sp. z o.o.
Bridgestone Stargard
Sp. z o.o.

PolandPolandManufacture and sale of tires
Manufacture and sale of tires

First Stop Ayme SAS

FranceBridgestone Hispania
Manufacturing S.L.U.

Spain

EUR in thousands
3(100.0%)100.0%

Manufacture and sale of tires

Bridgestone Middle
East & Africa FZE

U.A.E.

AED in thousands
17,000(100.0%)100.0%

Sale of tires

Bridgestone India
Private Ltd.

India

INR in thousands
7,737,041(100.0%)100.0%

Manufacture and sale of tires

Bridgestone South
Africa (Pty) Ltd.

South Africa

ZAR in thousands
207(75.0%)
75.0%

Manufacture and sale of tires

Bridgestone FinanceCorporation

Kodaira,Tokyo

Yen in millions
50

100.0%

Lending, purchasing of salesreceivables and entrusted
processing of accounting andpayroll calculation

Bridgestone Treasury
Singapore Pte. Ltd.

Singapore

USD in thousands
450,700

100.0%

Lending and purchasing ofsales receivables

Note:

Sale of tires

Figures in parentheses in the “Ownership” column represent the percentage of indirect ownership.

38

IV. Matters Related to the Directors of the Company
1. Names, etc. of the Members of the Board
Name

Position and assignment

Important concurrent positions

Shuichi Ishibashi

Member of the Board―

Masahiro
HigashiMember of the Board―

Scott Trevor
Davis

Yuri Okina

Kenichi Masuda

Member of the Board(Outside Director)
Chairperson of the Boardof Directors
Member of the Nominating
Committee
Member of theCompensation Committee
Member of the Board(Outside Director)
Chairperson of theCompensation Committee
Member of the Nominating
Committee
Member of the Board(Outside Director)
Chairperson of theNominating Committee
Member of theCompensation Committee

Kenzo
Yamamoto

Member of the Board(Outside Director)
Chairperson of the
Audit Committee

Yojiro Shiba

Member of the Board(Outside Director)
Member of the Audit
Committee

Yoko Suzuki

Member of the Board(Outside Director)
Member of the Audit
Committee

Yukari
Kobayashi

Member of the Board(Outside Director)
Member of the Audit
Committee

Professor, College of Business, Rikkyo
University
Outside Director of Sompo Holdings, Inc.
Outside Director, Ajinomoto Co., Inc.

Chairperson of the Institute, The Japan
Research Institute, Limited
Outside Director of Marubeni Corporation
Lawyer (Partner of Anderson Mori &Tomotsune)
Outside Audit & Supervisory Board Member ofMercuria Holdings Co., Ltd.
Outside Audit & Supervisory Board Member of
Chugai Pharmaceutical Co., Ltd.
Representative, Office of Financial andEconomic Initiative
Outside Director of SUMITOMO LIFE
INSURANCE COMPANY
Outside Director of Japan Post Bank Co., Ltd.
Outside Director of NIPPON EXPRESSHOLDINGS, INC.
Lawyer (Partner of Suzuki Sogo Law Office)Outside Director of Nippon Pigment Company
LimitedExternal Audit & Supervisory Board Memberof MARUI GROUP CO., LTD.
Outside Director of the Board of JAPAN PULPAND PAPER COMPANY LIMITED
Representative
Partner,
AmandaLife
Consulting LLC
Representative Member of JC1 LLC.
Outside Director, Nippon Shinyaku Co., Ltd.
Outside Director, Panasonic Connect Co., Ltd.

39

Name
Yasuhiro
Nakajima

Akira Matsuda
Tsuyoshi
YoshimiPosition and assignment

Important concurrent positions

Member of the Board(Outside Director)
Member of the Audit
Committee
Member of the Board
Member of the Audit
Committee (full-time)Member of the Board
Member of the Audit
Committee (full-time)

Certified Public Accountant(Representative, Nakajima CPA Office)――Notes 1. Positions, assignments and important concurrent positions, etc. are as of December 31, 2023.
2. Of the Members of the Board, Mr. Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto,
Mr. Yojiro Shiba, Ms. Yoko Suzuki, Ms. Yukari Kobayashi, and Mr. Yasuhiro Nakajima are Outside Directors asprescribed in Item 15 of Article 2 of the Companies Act.
3. There are no special interests between the Company and the organizations in which each Outside Director holds
concurrent position(s).
4. The Company has designated Members of the Board, Mr. Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda,
Mr. Kenzo Yamamoto, Mr. Yojiro Shiba, Ms. Yoko Suzuki, Ms. Yukari Kobayashi, and Mr. Yasuhiro Nakajima as
Independent Directors as stipulated by the Tokyo Stock Exchange and the Fukuoka Stock Exchange, and notified
the respective stock exchanges to that effect.
5. Member of the Audit Committee Mr. Yasuhiro Nakajima has abundant professional experience in accounting audit
and advisory work as a Certified Public Accountant, as well as considerable knowledge in finance and accounting.
6. Member of the Audit Committee Mr. Tsuyoshi Yoshimi was in charge of accounting operations of the Company formany years and has considerable knowledge in finance and accounting.
7. The Company has selected Members of the Board Mr. Akira Matsuda and Mr. Tsuyoshi Yoshimi as full-timemembers of the Audit Committee. Coordination with the internal audit department and day-to-day gathering of
information through attendance at important meetings are important for enhancing the effectiveness of audits.
Therefore, the Company has appointed Members of the Board who are well versed in the Company’s internalorganization and business execution as full-time Members of the Audit Committee.
8. The Company has entered into an agreement with each of the Members of the Board, Mr. Scott Trevor Davis, Ms.
Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto, Mr. Yojiro Shiba, Ms. Yoko Suzuki, Ms. Yukari Kobayashi,
Mr. Yasuhiro Nakajima, Mr. Akira Matsuda, and Mr. Tsuyoshi Yoshimi that limits his/her damage compensation
liability of Paragraph 1 of Article 423 of the Companies Act, pursuant to Paragraph 2 of Article 25 of the Articles ofIncorporation of the Company based on the provision in Paragraph 1 of Article 427 of the Companies Act. The
maximum amount of his/her liability based on said agreement shall be the higher of either ¥10 million or theminimum liability amount prescribed in Paragraph 1 of Article 425 of the Companies Act.
9. The Company has entered into a directors and officers liability insurance agreement provided for in Paragraph 1 of
Article 430-3 of the Companies Act with an insurance company, insuring Members of the Board, Executive Officers,
and Vice President-Senior Officers to cover any liability or dispute resolution costs that may result from claims fordamages related to the performance of their duties. However, certain exclusions apply, including for damages arisingfrom actions taken with the knowledge that they violate laws or regulations. The insurance premiums are fully borneby the Company.

40

2. Names, etc. of the Executive Officers
Name

Position

Shuichi Ishibashi

Representative
Executive
Officer

Masahiro Higashi

Representative
Executive
Officer

Paolo Ferrari

Executive
Officer

Masato Banno

Executive
Officer

Assignment and important concurrent positions
Global CEO
Joint Global COO (Responsible for BSJP and
BSCAP)
Bridgestone Asia Pacific Pte. Ltd., Chairman of the
Board
Concurrently responsible for BSJP
Chairman and Representative Board Member ofBridgestone Tire Solution Japan Co., Ltd.
Chairman and Representative Board Member ofBridgestone Cycle Co., Ltd.
Joint Global COO (Responsible for BSAM and
BSEMIA)
Global CSO
Bridgestone Americas, Inc., Member of the Board,
CEO and President
Global CTO, Senior Vice President
Responsible for Technology, Quality Management

Notes 1. Positions, assignments and important concurrent positions, etc. are as of December 31, 2023.
2. Of the Executive Officers, Mr. Shuichi Ishibashi and Mr. Masahiro Higashi concurrently serve as Members of theBoard.
3.Mr. Masahiro Higashi resigned from his post as Chairman and Representative Board Member of Bridgestone Cycle
Co., Ltd., effective December 31, 2023.
4. Meanings of abbreviations
CSO: Chief Business Solutions Officer
CTO: Chief Technology Officer41

3. Board Members’ and Executive Officers’ Remuneration for the Current Period(1) Total amount of remuneration, amount of each type of remuneration, and the number ofrecipients by the categories of Members of the Board and Executive Officers
Amount of each type of remuneration(Yen in millions)
Number of
Performance-based
remuneration
Categories
recipients
Fixed
Stock
Stock
(in persons)
Total
Annualcompensation compensation
remuneration
bonuses(PSU)(RSU, etc.)
Members of
the Board
110
―
―
―
110
5
(Internal)
Members of
the Board
179
―
―
―
179
10
(Outside)
Executive
215
163
227
195
800
5
Officers
Total
504
163
227
195
1,089
18
Notes 1.
2.

3.

4.
5.
6.

Allowance for Executive Officers who hold concurrent positions as Members of the Board (additional
allowance for Members of the Board with concurrent duties) is included in the total amount of
remuneration for Members of the Board.
The amount of fixed remuneration in the above table (total amount of base remuneration, additional
allowance for Members of the Board with concurrent duties, additional allowance for the chairpersons, andadditional allowance for committee chairs) is the total amount of remuneration paid during fiscal year 2023
(fully paid in cash; including the amount of actual payment to Directors who retired during fiscal year2023).
Of the annual bonuses in the above table, Groupwide performance-based bonus is the amount expected
to be paid in March 2024 based on the results of business performance, etc. of fiscal year 2023 (fully paidin cash), and performance-based bonus (area of responsibility) is the total amount of the actual payment
during fiscal year 2023 (reflecting the previous fiscal year’s business performance) and the standard
amount expected to be paid in March 2024 (fully paid in cash).
The stock compensation of the performance-based remuneration in the above table represents the total
amount expensed up to fiscal year 2023 (excluding the portion disclosed in prior years).
Two Executive Officers who hold concurrent positions as Members of the Board are included in thenumbers of Members of the Board (Internal) and Executive Officers, respectively.
One Member of the Board (Internal), two Members of the Board (Outside), and one Executive Officer who
retired during fiscal year 2023 are included in the numbers of Members of the Board and Executive
Officers, respectively.

42

(2) Compensation system
Type of remuneration

Fixed

Variable

Overview

Base・ Monthly cash remuneration determined based on role
remuneration
and responsibilities (position, etc.)
Additional
allowance for・ Monthly cash remuneration for executive officers who
Members of theserve concurrently as Members of the Board based on
Board with
their role and responsibilities
concurrent duties
Additional
・ Monthly cash remuneration for an outside director
allowance for thebased on their role and responsibilities as chairperson
chairpersonof the Board of Directors
Additional
・ Monthly cash remuneration for an outside director
allowance forbased on their role and responsibilities as chairperson
committee chairsof a committee
Performance・ Cash remuneration paid based on the evaluation of
based bonus
Groupwide performance (consolidated adjusted(Groupwide)
operating profit) for each fiscal year
Short-term
・Cash remuneration paid based on the individual
Performanceincentives
performance evaluation for each fiscal year
based bonus(Recipients: Joint Global COO and Representative(area of
Executive Officer, Senior Vice Presidents andresponsibility)
Executive Officers)
・ Remuneration provided for sharing value withshareholders and raising motivation to contribute toachievement of mid-term performance targets and the
Performance
improvement of corporate value
Share Unit (PSU) ・ The Company’s shares, etc. delivered according toGroupwide performance (ROIC and ROE) over a threeyear period (50% is paid in cash equivalent to themarket value)
Mid- to long・ Remuneration provided for sharing value withterm
shareholders and encouraging executive officers toincentives
realize the Mid-Long Term Business Strategy withsustainability at the core
Restricted Stock ・ RSU, etc. are provided according to the evaluation ofsustainability and transformation initiatives in each
Unit (RSU), etc.
fiscal year, and vest at time of retirement.
(50% is provided as stock units, and cash equivalent to
the market value is paid at time of retirement. The
remaining 50% is provided as restricted stock, and thetransfer restriction is lifted upon retirement.)(3) Method for deciding the policy for setting remuneration for Board Members andExecutive Officers and key points for the next fiscal year
a. Method for deciding the policy for setting Board Members’ and Executive Officers’ remuneration
The policy for setting remuneration by position and individual remunerations to the Company’s Board
Members and Executive Officers is determined by the Compensation Committee, composed solely of
Independent Outside Directors, by taking into account changes in the business environment andopinions of our shareholders and investors, upon obtaining the information necessary fordeliberations from third-party human resources and remuneration consultants who possess abundant
global experience and insight.
b. Policy for setting Board Members’ and Executive Officers’ remuneration
43

(a) Principles of remuneration- The Company designs the remuneration system for Board Members and Executive Officers basedon the following remuneration principles.
1. Attract and cultivate superior talent
2. Support a competitive remuneration level
Principles of
3. Provide motivation for the execution of business
remuneration
strategies
4. Provide motivation for enhancing shareholder value(b) Method of setting remuneration levels and composition ratio of remuneration<Executive Officers>- The Company sets remuneration for Executive Officers at an appropriate amount according to each
Executive Officer’s role and position by referring to remuneration levels, etc. of other major
companies in Japan, which are equal or greater in size (net sales and market capitalization) andprofitability (operating profit ratio) compared to the Company and operate globally in the samemanner as the Company (hereinafter the “Peer Companies”).
- While base remuneration is set at a middle level of the Peer Companies, the ratio of variable
remuneration is, in principle, set higher for higher positions with greater responsibility for businessperformance and corporate value, by referring to European companies. The Company aims to set
the total remuneration at a level that ensures a certain level of competitiveness among the Peer
Companies.
The following charts show the composition ratio of remuneration for Executive Officers by position if
the variable remuneration is the standard amount.
<Global CEO and Representative
Executive Officer>

RSU, etc.
20%
PSU
20%
Variable
67%

Base
remun
eration33%Bonuses
27%<Joint Global COO and
Representative Executive
Officer><Senior Vice
President andExecutive Officer>

RSU, etc. Base
20%
PSU
20%
Variable
67%

RSU, etc.

remuneration
33%

Bonuses
27%

15%

PSU
15%

Variable60%

Base
remuneration
40%

Bonuses
30%<Members of the Board>- Remuneration for Members of the Board who do not concurrently serve as Executive Officers is set
in consideration of factors such as remuneration levels at the Peer Companies and companies with
Nominating Committee, etc., the roles and functions expected of each Member of the Board, andthe workload involved in executing their duties.
(c) Performance indicators of performance-based remuneration and reasons for the selection- The Company selects the following as performance indicators of performance-based remuneration
based on the Mid-Long Term Business Strategy and the Mid Term Business Plan.

44

Short-term incentives (*1)
Performance-based bonus
Performance-based bonus(Groupwide)(area of responsibility)<Achievement in area of<Enhancement of earning
responsibility/strategic
power and profitability>
targets>
Consolidated adjusted
Individual performance
operating profit
evaluation
100%
100%
Mid- to long-term incentives (*2)
PSU
RSU, etc.
<Review of business portfolio><Realization of<Improvement of profitability
transformation/sustainability
over mid-term>business framework>
ROIC
ROE
Evaluation of sustainability
80%
20%
100%
*1. The ratio of emphasis on Groupwide performance-based bonus and performance-based bonus(area of responsibility) is set at 60:40 in view of the roles and responsibilities the Joint Global
COO and Representative Executive Officer and Senior Vice Presidents and Executive Officers
bear. (The Global CEO and Representative Executive Officer only receives Groupwide
performance-based bonuses).
*2. The ratio of emphasis on PSU (financial evaluation) and RSU, etc. (non-financial evaluation) is
set at 50:50 uniformly for all Executive Officers.

(4) Calculation method and evaluation results of performance-based remuneration
a. Short-term incentives (Groupwide performance-based bonus)⚫

The amount of individual Groupwide performance-based bonus is determined within a range of
0% to 150% of the standard amount, according to the degree to which targets of consolidated
adjusted operating profit are achieved.

⚫

The Groupwide performance-based bonus for fiscal year 2023 was paid at 85.6% of the standard
amount, in accordance with the evaluation of the performance indicators as follows. (Recipients:
Global CEO and Representative Executive Officer, Joint Global COO and Representative
Executive Officer, Senior Vice Presidents and Executive Officers)

Performanceindicator

Fluctuation
range ofpayment rate

Target for fiscal year
2023
(Yen in billions)

Amount ofconsolidated adjusted
operating profit

0-150%

Bonus payment by
individualStandard amountby position(Groupwide
performance-based
bonus)=

Maximum:
Target:Threshold:

45

Results for fiscal
year 2023(Yen in billions)Payment
rate

480.60

85.6%

612.0
510.0
408.0

×

Payment rate
85.6%

b. Short-term incentives (Performance-based bonus (area of responsibility))⚫

The amount of individual bonuses for the Joint Global COO and Representative Executive Officer,
Senior Vice Presidents, and Executive Officers is Groupwide performance-based bonus plus
performance-based bonus (area of responsibility), which is variable within a range of 0% to 150%of the standard amount, determined according to the individual performance evaluation related totheir area of responsibility and functions. The ratio of emphasis on Groupwide performance-based
bonus and performance-based bonus (area of responsibility) is set at 60:40 for the Joint Global
COO and Representative Executive Officer, Senior Vice Presidents, and Executive Officers, inconsideration of their roles and responsibilities.

⚫

The amount of the bonus payment for the Joint Global COO and Representative Executive Officer
for fiscal year 2023 will be determined by the Compensation Committee at a meeting to be held inMarch 2024, based on the performance in their area of responsibility, while comprehensively
taking into consideration important initiatives, etc., being carried out in light of the businessenvironment in their area of responsibility.

⚫

The amount of bonus payment for Senior Vice Presidents and Executive Officers for fiscal year
2023 will be determined by the Compensation Committee at a meeting to be held in March 2024,
based on the individual performance evaluation for the functions for which they are responsible.

Bonus payment by
individual=Standard amountby position(Performance-based
bonus (areaof responsibility))

×

Payment rate
(Individual
performance
evaluation)(0-150%)c. Mid- to long-term incentives (stock compensation, PSU)⚫

The Company’s PSU is a plan in which the Company’s common stock, etc. are delivered in a
number calculated based on its consolidated results at the end of the performance measuring
period (a three-year period). The number of shares, etc. to be delivered to each Executive Officer
is determined within a range of 0% to 200% of the preset standard number of shares by position.
50% of the number of shares calculated is paid in cash equivalent to the market value (thoseretiring before the evaluation period ends are paid fully in cash equivalent to the market value).

<Image of the performance measuring period of the PSU plan by year>
Plan
2021
2022
2023
2024
2021 Plan
2022 Plan

Performance measuring period

2025● Provision of shares/cash

Performance measuring period● Provision of shares/cash

Performance measuring period2023 Plan

46

2026

● Provision ofshares/cash⚫

The 2021 Plan (evaluation period: 2021 to 2023), for which the evaluation was finalized in fiscal
year 2023, resulted in a payment of 83.0% of the standard number of shares, based on theevaluation of performance indicators as follows. Of the payment, 50% is delivered in the form of
the Company’s common stock, and the remaining 50% is paid in cash equivalent to the market
value.
(Recipients: Global CEO and Representative Executive Officer, Joint Global COO and
Representative Executive Officer, Joint Global COO and Executive Officer, Senior Vice Presidents
and Executive Officers)

Evaluation
ratio

Fluctuation
range ofpayment rate

Consolidated
ROIC

80%

0-200%

Consolidated
ROE

20%

0-200%

Performanceindicator

Target for fiscal year
2023

Results

Payment
rate

Maximum: 14%
Target:10%
Threshold: 6%

8.7%

83.8%

Maximum: 16%
Target:12%
Threshold: 8%

10.4%

80.0%

Payment rate (weighted-average)
Number of shares by
individual=Standard number ofshares byposition(*1)

×

83.0%

Payment rate
83.0%

*1 The “standard number of shares by position” above is calculated by dividing the standard amountby position by the price of Company shares at the beginning of the performance evaluation
period.
d. Mid- to long-term incentives (stock compensation, RSU, etc.)⚫

Since the amount of RSU, etc. provided varies from 0% to 120% in accordance with theevaluation of transformation and sustainability initiatives, including for ESG, in each fiscal year,
and the results of these efforts are reflected in the corporate value (price of Company shares)
over the mid-long term, vesting of RSU, etc. shall be at the time of retirement. 50% of the amountto be paid shall be delivered as RSU, and cash equivalent to the market value of the number ofstock units shall be paid at the time of retirement. The remaining 50% shall be delivered in theform of the Company’s shares (RS), on which transfer restriction shall be lifted at the time ofretirement.

<Image of the sustainability evaluation period and transfer restriction period of the RSU, etc. plan by
year>
Plan
2022
2023
2024
・・・
20XX
At the time of retirement
Sustainability● 50%: Provision of RSU● Cash payment
2022 Planevaluation ● 50%: Delivery of RS●Lifting of the transfer restriction
2023 Plan

Sustainability● 50%: Provision of RSU
evaluation ● 50%: Delivery of RS

47● Cash payment●Lifting of the transfer restriction⚫

The payment of RSU, etc. for fiscal year 2023 was 110% of the standard amount, in overall
consideration of achievement status of the sustainability targets ((1) establishment of“Bridgestone E8 Commitment” as corporate commitment to evolve into a sustainable solutions
company toward 2050 and communication with stakeholders both inside and outside of theCompany, (2) investment in and development of people to increase added value and job
satisfaction, (3) carbon neutrality, including reduction of CO 2 emissions, (4) circular economy,
including increasing the ratio of recycled and renewable resources, and (5) activities forachieving a nature-positive world, establishment of Water Stewardship Policy.) The
Compensation Committee commended the results that exceeded the targets for fiscal year 2023,
specifically the major quantitative targets set forth in the Mid Term Business Plan (such as
reducing CO2 emissions and increasing the ratio of recycled and renewable resources). The
Compensation Committee also commended the steady investments the Company has been
making in the development of young people and human resources who will lead the future of theCompany. The number of individual stock units to be provided as RSU and the number ofindividual shares to be delivered as RS are calculated by dividing the “Amount of RSU, etc.
payments by individual” stated below by the Company’s stock price at the time of the share unit
provision and share delivery.
(Recipients: Global CEO and Representative Executive Officer, Joint Global COO and
Representative Executive Officer, Joint Global COO and Executive Officer, Senior Vice
Presidents and Executive Officers)
Amount of RSU, etc.
payments byindividual=Standard amountby position

×

Payment rate
110%(5) Activities of the Compensation Committeea. The number of meetings of the Compensation Committee and attendance of members
In fiscal year 2023, the Compensation Committee held 15 meetings mainly regarding the amount ofexecutive compensation, with full attendance by the Committee members. In addition, the Committee
received objective and specialized input necessary for deliberations from a third-party humanresources and remuneration consultant, as needed.
b. Specific matters to be resolved, deliberated and considered at the Compensation Committee⚫

Policy for setting Board Members’ and Executive Officers’ remuneration⚫

Effects of remuneration incentives⚫

System and level of executive compensation⚫

Remuneration of executives of major overseas group companies⚫

Revisions of guidelines regarding executives

c. Adequacy and appropriateness of individual remuneration for Members of the Board and Executive
Officers
Individual remunerations for Members of the Board and Executive Officers for the period underreview are set by the Compensation Committee, composed solely of Independent Outside Directors,
by carrying out multifaceted discussions including consistency of remunerations with the policy for
setting remunerations based on objective and specialized information necessary for deliberations, as
described in paragraphs a. and b. above. Therefore, the Committee has determined that theindividual remunerations for Members of the Board and Executive Officers are in line with the policy
and adequate.
48

Consolidated Financial Statements
Consolidated Statement of Financial Position(Yen in millions)

Current Year(As of December 31, 2023)(Assets)
Current Assets:
Cash and cash equivalents

724,601

Trade and other receivables

952,307

Inventories

868,578

Other financial assets

10,792Other current assets

138,0632,694,341

Subtotal
Assets held for sale

3,093

Total Current Assets

2,697,434

Non-current Assets:
1,738,506

Property, plant and equipment
Right-of-use assets

319,135

Goodwill

149,990

Intangible assets

200,858

Investments accounted for using equity method

41,183

Other financial assets

131,210Deferred tax assets

88,141Other non-current assets

61,357

Total Non-current Assets

2,730,379

Total Assets

5,427,813

49

(Yen in millions)

Current Year(As of December 31, 2023)(Liabilities)
Current Liabilities:
Trade and other payables

599,240

Bonds and borrowings

258,074

Lease liabilities

61,308

Income taxes payable

91,124

Other financial liabilities

49,659Provisions

35,489Other current liabilities

168,858

Subtotal

1,263,753

Liabilities directly associated with assets held for sale

1,058

Total Current Liabilities

1,264,811

Non-current Liabilities:
Bonds and borrowings

239,789

Lease liabilities

270,989

Other financial liabilities

9,901

Retirement benefit liabilities

153,511

Provisions

40,255

Deferred tax liabilities

30,946

Other non-current liabilities

12,217

Total Non-current Liabilities

757,608

Total Liabilities

2,022,419(Equity)Common stock

126,354

Capital surplus

120,300

Treasury stock(135,409)

Other components of equity

531,127
2,711,220

Retained earnings
Total equity attributable to owners of parent

3,353,592

Non-controlling interests

51,803

Total Equity

3,405,394

Total Liabilities and Equity

5,427,813

50

Consolidated Statement of Profit or Loss
(Yen in millions)

Current Year
(Year ended December 31, 2023)
Continuing operations
Revenue

4,313,800

Cost of sales

2,661,228

Gross profit

1,652,573

Selling, general and administrative expenses

1,181,482

Other income

39,193

Other expenses

28,509Operating profit

481,775

Finance income

35,385

Finance costs
Share of profit of investments accounted for using equity
methodProfit before tax

78,346444,154

Income tax expense

111,177

Profit from continuing operations

332,977

5,341

Discontinued operations
Profit from discontinued operations

4,375

Profit337,352

Profit attributable to owners of parent

331,305

Non-controlling interests

6,048

Profit337,352

51

(Reconciliation from adjusted operating profit to profit before tax) (for reference)Year ended
December 31, 2023
Yen in millions
Adjusted operating profit (Note 1)

480,602

Adjustment items (income) (Note 2)

21,731

Adjustment items (expenses) (Note 5)

20,558Operating profit

481,775

Finance income

35,385

Finance costs

78,346

Share of profit of investments accounted for using equity
method5,341

Profit before tax

444,154(Note 1)

For adjusted operating profit, adjustment items (income and expenses) are excluded from operating profit.

(Note 2)The major breakdown of adjustment items (income) is as follows:Year ended
December 31, 2023
Yen in millions

Insurance claim income

2,347

Business and plant restructuring income (Note 3)

8,645

Gain on reversal of impairment losses on fixed assets

18

Other income with large amounts related to one time
event (Note 4)

10,720Adjustment items (income)

21,731(Note 3)The major breakdown of business and plant restructuring income is presented in “(Notes to the consolidated
statement of profit or loss), 1. Business and plant restructuring income”.

(Note 4)The breakdown of other income with large amounts related to one time event is included in “(Notes to theconsolidated statement of profit or loss), 2. Gain on sale of fixed assets”.

(Note 5)The major breakdown of adjustment items (expenses) is as follows:Year ended
December 31, 2023
Yen in millions

Impairment losses

1,833

Cost of sales (loss on disaster)

1,777

Other expenses (loss on disaster)

403

Business and plant restructuring expenses (Note 6)

17,921Other expense with large amounts related to one time

(1,375)event (Note 7)
Adjustment items (expenses)(Note 6)

20,558The major breakdown of business and plant restructuring expenses is presented in “(Notes to the consolidated
statement of profit or loss), 3. Business and plant restructuring expenses”.

52

(Note 7)

This was the recording of expenses relating to parts replacement, etc. of the affected standard and power assist
bicycles following the recall in October 2022 of certain models of standard and power assist bicycles
manufactured by BRIDGESTONE CYCLE CO., LTD., a consolidated subsidiary of the Company; however, theexpenses have been partially reversed.

53

Consolidated Statement of Cash Flows (for reference)
Current Year
(Year ended December 31,
2023)
Yen in millions

Cash flows from operating activities
Profit before tax
Profit before tax from discontinued operations
Depreciation and amortization
Impairment losses
Increase (decrease) in accounts payable - bonuses
Increase (decrease) in retirement benefit liabilities
Interest and dividend income
Interest expenses
Foreign currency exchange loss (gain)
Share of profit of investments accounted for using equity method
Loss (gain) on sale of fixed assets
Business and plant restructuring income
Business and plant restructuring expenses
Loss on retirement of fixed assets
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on litigation
Increase (decrease) in provision for product warranties
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for purchase of intangible assets
Payments for purchase of investment securities
Proceeds from sale of investment securities
Payments of long-term loans receivableCollection of loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Dividends paid to owners of parent
Dividends paid to non-controlling interests
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Net increase (decrease) in cash and cash equivalents included in
assets held for sale
Cash and cash equivalents at end of period

54444,154
5,340
305,805
1,833(10,845)(9,959)(31,079)
21,03819,346(5,341)(17,322)(8,645)
13,3903,22556,80785,319(55,279)
6,519(7,047)(7,682)(106,865)
702,71234,461(17,757)(57,982)
661,433(282,449)
29,609(60,488)(2,203)27,923(21,122)
14,891(3,880)(297,719)
20,873
23,107(20,668)(68,401)(130,044)(3,940)(4,584)(183,657)
25,475205,532
518,905
164
724,601

Non-Consolidated Financial Statements
Non-consolidated Balance Sheet

Current Year(As of December 31, 2023)
Yen in millions(Assets)
Current Assets:
318,073

Cash and deposits

457

Notes receivable
Accounts receivable

326,704

Finished products

44,268Work in process

8,457

Raw materials and supplies

41,488

Short-term loans receivable for subsidiaries and associates

107,436

Accounts receivable-other

24,167

Other current assets

21,307(765)

Allowance for doubtful accounts
Total Current Assets

891,593

Fixed Assets:
Property, plant and equipment
99,275

Buildings
Structures

8,502

Machinery and equipment

47,525

Vehicles and carriers

1,676

Tools, furniture and fixtures

16,543

Land

57,563

Construction in progress

34,254

Total property, plant and equipment

265,338

Intangible assets

34,319Investments and other assets
Investment in securities

51,646

Investments in subsidiaries and associates

800,458

Investments in subsidiaries and associates, other than stock

52,590Long-term loans receivable for subsidiaries and associates

1,276

Deferred tax assets

21,393

Other assets

2,409
(0)

Allowance for doubtful accounts
Total investments and other assets

929,773

Total Fixed Assets

1,229,429

Total

2,121,023

55

Current Year(As of December 31, 2023)
Yen in millions(Liabilities)
Current Liabilities:
Accounts payable
Current portion of bonds
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received
Allowance for losses on business transfer
Other current liabilities
Total Current Liabilities
Long-Term Liabilities:
Bonds
Lease obligations
Accrued pension and liability for retirement benefits
Asset retirement obligation
Other long-term liabilities
Total Long-Term Liabilities
Total Liabilities

93,205100,000
112
72,97030,42963,964
5,859
5,834
34,465406,837
210,000
326
41,5062,596
2,186
256,614
663,451(Equity)
Shareholders’ Equity:
Common stock
Capital surplus
Capital reserve
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Reserve for advanced depreciation of fixed assets
Reserve for special account for advanced depreciation of
fixed assets
General reserve
Unappropriated retained earnings
Total retained earnings
Treasury stock
Total Shareholders’ Equity
Net unrealized gain (loss) and translation adjustments:
Net unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on derivative instruments
Total net unrealized gain (loss) and translation
adjustments
Stock acquisition rights

126,354
122,079
122,079
31,2791,279,701
28,796
8,903
789,311452,692
1,310,980(135,408)
1,424,005
30,076
1,183
31,2592,308

Total Equity

1,457,572

Total

2,121,023

56

Non-consolidated Statement of Profit or Loss
Current Year
(Year ended December 31, 2023)
Yen in millions

Net Sales

1,007,593

Cost of Sales

608,053

Gross Profit

399,540

Selling, General and Administrative Expenses

222,484

Operating Profit

177,056

Non-operating Income
Interest income

1,059

Dividend income

144,010

Other

7,223

152,292

Non-operating Expenses
Interest expense

841

Foreign currency exchange loss

18,897

Other

9,015

Ordinary Profit

28,754
300,594

Extraordinary Income
Gain on sale of fixed assets

16,028Gain on sales of investments in securities

19,665Gain on business transfer

5,512Profit before Income Taxes

41,206
341,800

Income taxes - current

47,141

Income taxes - deferred

10,445

Profit57,586284,21557

Independent Auditor’s ReportFebruary 16, 2024
To the Board of Directors of Bridgestone Corporation:

KPMG AZSA LLC
Tokyo Office, Japan
Hirotaka Tanaka
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Kentaro Maruta
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Ayumu Nakajima
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant

OpinionWe have audited the consolidated financial statements, which comprise the consolidated statementof financial position, the consolidated statement of profit or loss, the consolidated statement ofchanges in equity and the related notes of Bridgestone Corporation (“the Company”) and its
consolidated subsidiaries (collectively referred to as “the Group”), as at December 31, 2023 and forthe year from January 1, 2023 to December 31, 2023 in accordance with Article 444-4 of theCompanies Act.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position and the results of operations of the Group for theperiod, for which the consolidated financial statements were prepared, in accordance with theaccounting standards that omit a part of the disclosures required under Designated International
Financial Reporting Standards pursuant to the provisions of the second sentence of the first paragraphof Article 120 of the Ordinance on Company Accounting.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of theGroup in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Other Information
The other information comprises the business report and its supplementary schedules.
Management is responsible for the preparation and presentation of the other information. The audit
committee is responsible for overseeing the directors’ performance of their duties with regard to thedesign, implementation and maintenance of the reporting process for the other information.
Our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
58

In connection with our audit of the consolidated financial statements, our responsibility is to readthe other information and, in doing so, consider whether the other information is materiallyinconsistent with the consolidated financial statements or our knowledge obtained in the audit, orotherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management and The Audit Committee for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for suchinternal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theGroup’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern in accordance with accounting principles generally accepted in Japan.
The audit committee is responsible for overseeing the directors’ performance of their duties withregard to the design, implementation and maintenance of the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error andare considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these consolidated financial
statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:

Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The selection and application of audit procedures depends on the auditor’s judgement.

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the objective of the audit is not to
express an opinion on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.



Evaluate whether the presentation and disclosures in the consolidated financial statements arein accordance with accounting standards generally accepted in Japan, the overall
presentation, structure and content of the consolidated financial statements, including thedisclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
59



Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.

We communicate with the audit committee regarding, among other matters, the planned scope andtiming of the audit, significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with it all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, actions taken
to eliminate threats or safeguards applied.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company and its
subsidiaries which is required to be disclosed pursuant to the provisions of the Certified Public
Accountants Act of Japan.

Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’sReport as required by the Companies Act for the conveniences of the reader.

60

Independent Auditor’s ReportFebruary 16, 2024
To the Board of Directors of Bridgestone Corporation:

KPMG AZSA LLC
Tokyo Office, Japan
Hirotaka Tanaka
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Kentaro Maruta
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Ayumu Nakajima
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant

OpinionWe have audited the financial statements, which comprise the non-consolidated balance sheet, thenon-consolidated statement of profit or loss, the non-consolidated statement of changes in equity
and the related notes, and the accompanying supplementary schedules (“the financial statements
and others”) of Bridgestone Corporation (“the Company”) as at December 31, 2023 and for theyear from January 1, 2023 to December 31, 2023 in accordance with Article 436-2-1 of theCompanies Act.
In our opinion, the financial statements and others referred to above present fairly, in all material
respects, the financial position and the results of operations of the Company for the period, forwhich the financial statements and others were prepared, in accordance with accounting principles
generally accepted in Japan.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements and others section of our report. We are independent of theCompany in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance withthese requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Other Information
The other information comprises the business report and its supplementary schedules.
Management is responsible for the preparation and presentation of the other information. The audit
61committee is responsible for overseeing the directors’ performance of their duties with regard to thedesign, implementation and maintenance of the reporting process for the other information.
Our opinion on the financial statements and others does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements and others, our responsibility is to read theother information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements and others or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management and The Audit Committee for the Financial Statements andothersManagement is responsible for the preparation and fair presentation of the financial statements
and others in accordance with accounting principles generally accepted in Japan, and for suchinternal control as management determines is necessary to enable the preparation of financial
statements and others that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements and others, management is responsible for assessing theCompany’s ability to continue as a going concern, disclosing, as applicable, matters related togoing concern in accordance with accounting principles generally accepted in Japan.
The audit committee is responsible for overseeing the directors’ performance of their duties withregard to the design, implementation and maintenance of the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements and Others
Our objectives are to obtain reasonable assurance about whether the financial statements andothers as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements andothers.
As part of our audit in accordance with auditing standards generally accepted in Japan, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:

Identify and assess the risks of material misstatement of the financial statements and others,
whether due to fraud or error, design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The selection and application of audit procedures depends on the auditor’s judgement.

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the objective of the audit is not to
express an opinion on the effectiveness of the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis ofaccounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements
and others or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
62

Evaluate whether the presentation and disclosures in the financial statements and others arein accordance with accounting standards generally accepted in Japan, the overall
presentation, structure and content of the financial statements and others, including thedisclosures, and whether the financial statements and others represent the underlying
transactions and events in a manner that achieves fair presentation.

We communicate with the audit committee regarding, among other matters, the planned scope andtiming of the audit, significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with it all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, actions taken
to eliminate threats or safeguards applied.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act ofJapan.

Notes to the Reader of Independent Auditor’s Report:
This is an English translation of the Independent Auditor’s Report as required by the Companies
Act of Japan for the conveniences of the reader.

63

Audit Committee’s Audit Report
Audit Report
The Audit Committee has audited the Members of the Board and Executive Officers’ performance of theirduties for the 105th business year from January 1, 2023 to December 31, 2023 and reports as follows inregard to the method and results of those audits.
1. Method and Contents of Audits
In regard to the content of the Board of Directors’ Resolutions regarding the matters stated in Article 416,
paragraph (1), items (i)(b) and (i)(e) of the Companies Act, as well as the systems developed pursuant tothose resolutions (i.e., internal control systems), the audit committee periodically received reports from theMembers of the Board, Executive Officers, employees and other relevant personnel regarding the status of
the establishment and operation of those systems and as necessary requested explanations and expressed
opinions in regard thereto, in addition to which the Audit Committee conducted audits using the following
methods.
(1) In accordance with the audit policies and division of duties, etc. determined by the Audit Committee, andin cooperation with the internal audit division and other relevant functions of the company, the Audit
Committee attended important meetings, received reports from the Members of the Board, Executive
Officers and other relevant personnel regarding matters related to the performance of their duties, requested
explanations as necessary, viewed important approval/decision-making documents, etc., and inspected thestatus of operations and assets at the head office and main business locations. Additionally, in regard to
subsidiaries, the Audit Committee communicated and exchanged information with the Members of theBoard, Corporate Auditors and other relevant personnel of subsidiaries and received reports on businessfrom subsidiaries as necessary.
(2) The Audit Committee oversaw and verified whether the External Auditor maintained an independent
position and conducted an appropriate audit, received reports from the External Auditor on the status of theperformance of its duties, and requested explanations as necessary. Additionally, the Audit Committee
received notification from the External Auditor that, in accordance with the “Quality Control Standards for
Audits” (Business Accounting Council), etc., it had developed systems in order to ensure that its duties areappropriately performed (i.e., notification of the matters stated in the items of Article 131 of the Ordinanceon Accounting of Companies) and requested explanations as necessary.
Using the methods above, the Audit Committee examined the business report, the supplementary schedules
thereto, the non-consolidated financial statements (i.e., the non-consolidated balance sheet, the nonconsolidated statements of profit or loss, the non-consolidated statement of changes in equity and notes tothe non-consolidated financial statements) and their supplemental schedules, as well as the consolidated
financial statements (the consolidated statement of financial position, the consolidated statement of profit orloss, the consolidated statement of changes in equity and notes to the consolidated financial statements)
for the business year.
2. Audit Results(1) Results of audit of business report, etc.
(i) We find that the business report and the supplementary schedules thereto accurately present the statusof the company in accordance with laws, regulations, and the Articles of Incorporation of the Company.
(ii) We do not find any misconduct nor any material fact constituting a violation of any law, regulation, or the
Articles of Incorporation of the Company in relation to the Members of the Board or the Executive Officers’
performance of their duties.
(iii) We find the content of the resolutions of the Board of Directors regarding internal control systems to bereasonable. Additionally, we do not find any matters that should be commented upon in regard to thestatements in the business report or the Members of the Board and Executive Officers’ performance of theirduties relating to the internal control systems.
(2) Results of audit of Non-consolidated Financial Statements and their Supplemental Schedules thereto
We find the methods and results of the audit by the External Auditor, KPMG AZSA LLC, to be reasonable.
(3) Results of audit of Consolidated Financial Statements
We find the methods and results of the audit by the External Auditor, KPMG AZSA LLC, to be reasonable.
64

February 16, 2024
Audit Committee, Bridgestone Corporation
Kenzo Yamamoto
Yojiro Shiba
Yoko Suzuki
Yukari Kobayashi
Yasuhiro Nakajima
Akira Matsuda (full-time)
Tsuyoshi Yoshimi (full-time)(Note) Audit Committee Members Kenzo Yamamoto, Yojiro Shiba, Yoko Suzuki, Yukari Kobayashi, andYasuhiro Nakajima are external board members provided for in Article 2, item (xv) and Article 400, paragraph(3) of the Companies Act.
The above represents a translation, for convenience only, of the original report issued in the Japanese
language.

65