Bridgestone Corporation (5108)

First half results of fiscal 2012

Consolidated Financial Statements
for the First Half of the Fiscal Year Ending December 31, 2012
August 7, 2012
These financial statements, prepared in accordance with accounting principles generally accepted in Japan, havebeen translated for reference only from the original Japanese-language document "KESSAN TANSHIN." The
entire format is pursuant to the requirements or guidance of Tokyo Stock Exchange. As for the contents, if there
are any differences or discrepancies between the original Japanese-language and the English translation, theoriginal Japanese-language supersedes this English translation.
Bridgestone Corporation
Stock exchange listings: Tokyo, Osaka, Nagoya, Fukuoka
Code number:5108
URL:http://www.bridgestone.co.jp
Representative: Masaaki Tsuya, CEO and Representative Board Member
Contact:
Takehisa Kichise, Treasurer, General Manager
Telephone:+81-3-3563-6985
Scheduled date of quarterly securities report submission:
August 10, 2012
Scheduled date of dividend payment commencement:
September 3, 2012
Supplementary information for the quarterly financial statements to be prepared:
Yes
Meeting to explain for the quarterly financial statements to be held:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Half of Fiscal 2012 (January 1, 2012 - June 30, 2012)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales

Operating income

Yen in millions

Six months ended
June 30, 2012
1,488,970
Six months ended
June 30, 2011
1,459,125(Note) Comprehensive Income:Net income%

Yen in millions%

Yen in millions%

Yen in millions%

2.0

133,78542.9

128,98140.4

75,26639.1

93,62819.4
91,88035.2
54,115Six months ended June 30, 2012
¥96,865 million(4.7%)
Six months ended June 30, 2011
¥92,526 million (- %)

21.6

5.3

Net income
per share
Six months ended
June 30, 2012
Six months ended
June 30, 2011

Ordinary income

Diluted net income
per share
Yen

Yen

96.17

96.10

69.14

69.11

(2) Consolidated Financial Position
Total assets

Ratio of total equity tototal assets

Net assets

Yen in millions

Yen in millions%

As of Jun. 30, 2012

2,789,105

1,252,557

43.5

As of Dec. 31, 2011
(Reference) Total equity

2,677,344

1,165,673
As of June 30, 2012
As of December 31, 2011

42.2
¥1,214,450 million¥1,130,577 million

2. Dividends
2nd quarter
end

Annual Dividend
3rd quarter
end

Yen

Yen

Yen

Yen

Yen

－
－

10.00
16.00

－

12.00

22.00

－

16.00

32.00

1st quarterend
FY 2011
FY 2012FY 2012(Projection)(Note) Changes from the latest forecasts released: No

Year -endTotal

3. Consolidated Projected Results for Fiscal 2012 (January 1, 2012 - December 31, 2012)(Percentage figures represent changes from the same period of previous year)
Net income
Operating income
Ordinary income
Net income
per share

Net sales
Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

FY 20123,130,000
3.5
287,000(Note) Changes from the latest forecasts released: Yes

50.0

269,000

50.0

172,000

67.0

219.76

Bridgestone Corporation (5108)

First half results of fiscal 2012

* Notes(1) Changes in principal subsidiaries during the six months ended June 30, 2012 : No
(Changes in specified subsidiaries involving change in consolidation scope)(2) Application of special accounting treatments for consolidated quarterly financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting policy, etc.
: No
2) Changes in policy other than 1): No3) Changes in accounting estimates: No4) Restatements: No(4) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
June 30, 2012
813,102,321 shares
December 31, 2011
813,102,321 shares
2) Number of shares of treasury stock at period end
June 30, 2012
December 31, 2011

30,439,447 shares
30,441,046 shares

3) Average outstanding number of shares (during the first half)First Half ended June 30, 2012
782,661,812 sharesFirst Half ended June 30, 2011
782,662,539 shares* Implementation status about the quarterly review
These financial statements are exempt from quarterly review procedures as required by the Financial Instruments
and Exchange Act. A part of quarterly review based on Financial Instruments and Exchange Act were not completed
at the time of the disclosure of these financial statements.
* Statement regarding appropriate use of forward-looking statements and other notes
Projections of consolidated results for fiscal 2012 announced on February 16, 2012 are revised in thisdocument. The preceding descriptions of projections and plans are “forward-looking statements,” which involve
known and unknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual
performance and financial results to differ substantially from management’s projections and plans. For details,
refer to “1. Qualitative Information for the First Half of Fiscal 2012, (3) Qualitative Information on Projections ofConsolidated Results”, on page 5.

Bridgestone Corporation (5108)

First half results of fiscal 2012

[ Index ]1. Qualitative Information for the First Half of Fiscal 2012

…P2

(1) Qualitative Information on Consolidated Operating Results…P2(2) Qualitative Information on Consolidated Financial Position…P4(3) Qualitative Information on Projections of Consolidated Results…P5

2. Other Information (Notes)…P6(1) Application of special accounting treatments for consolidated quarterly financial statements…P6(2) Additional Information…P6

3. Consolidated Quarterly Financial Statements…P7(1) Consolidated Balance Sheet…P7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…P9

Consolidated Statements of Income…P9

Consolidated Statements of Comprehensive Income…P10(3) Notes regarding going concern assumption…P11(4) Notes regarding significant changes in the amount of shareholders’ equity…P11(5) Segment Information

…P11

1

Bridgestone Corporation (5108)

First half results of fiscal 2012

1. Qualitative Information for the First Half of Fiscal 2012
The Bridgestone Corporation is referred to as the “Company,” and the Company and its subsidiaries are referred
to as the “Companies.”(1) Qualitative Information on Consolidated Operating Results
1) Sales and earnings
FY 2012 1H

FY 2011 1H(Six months ended(Six months ended

June 30, 2012)

June 30, 2011)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,488.9

1,459.1

29.8

2

Operating income

133.7

93.6

40.1

43

Ordinary income

128.9

91.8

37.1

40

Net income

75.2

54.1

21.1

39

Net sales

In the first half of fiscal 2012(January 1 to June 30, 2012), the Companies’ operating environment was plaguedby raw material prices remaining at high levels during the period and the continuing strength of the Japanese yen.
Despite these challenges, the domestic economy showed signs of recovery, including increased demand broughton by re-building and rebounding sales of new vehicles following recovery from the Great East Japan Earthquake.
The United States economy gradually recovered during this time, while the financial crisis had a negative impact
on the European economy. Asian economic expansion showed signs of a slowdown, particularly in China andIndia.
Under these operating conditions, the Companies continued working to achieve the goal of becoming theWorld’s undisputed No. 1 tire and rubber company in both name and reality. Stepping up our efforts on a global
scale, the Companies focused on increasing the sales of highly competitive products, strengthening supply
capacity, improving manufacturing productivity, enhancing technology and effectively utilizing our management
resources. Moreover, with business conditions evolving at unprecedented speed, including the changing
structures for demand and competition, the Companies have been striving to rapidly implement a range ofinitiatives to enhance our ability to respond quickly to market trends, increase the sales of strategic products,
construct and enhance a business model that will extend beyond the mere sale of products, and develop
eco-friendly products and businesses.
As a result, net sales in the first half of fiscal 2012 was ¥1,488.9 billion, an increase of 2% over the first half offiscal 2011, operating income was ¥133.7 billon, an increase of 43%, ordinary income was ¥128.9 billion, an
increase of 40% and net income was ¥75.2 billion, an increase of 39%.

2

Bridgestone Corporation (5108)

First half results of fiscal 2012

2) Segment Information
FY 2012FY 2011

1H

1H
Increase(Six months ended(Six months ended

June 30, 2012)

June 30, 2011)(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,237.5

1,221.2

16.2

1

Operating income

119.6

89.7

29.9

33

Diversified
Products

Net Sales

260.4

245.1

15.3

6

Operating income

14.0

3.8

10.2

267

Consolidated
Results

Net Sales

1,488.9

1,459.1

29.8

2

133.7

93.6

40.1

43

Net Sales
Tires

Operating income

In the tire segment, the Companies worked to maximize sales momentum by introducing appealing new
products globally, enhancing strategic products and reinforcing fundamental competencies such as specification
optimization, and responding promptly to demand fluctuation in each region.
In Japan, unit sales of replacement tires for passenger cars and light trucks decreased from the first half of fiscal
2011. However, due to large recovery in vehicle production volume, unit sales of tires for new vehicles strongly
increased. While unit sales of replacement tires for trucks and buses decreased, total unit sales of tires for trucks
and buses remain unchanged due to the recovery of original equipment tires sales. In the Americas, unit sales ofpassenger and light truck tires in North America remain unchanged compared to the first half of fiscal 2011.
However unit sales of tires for trucks and buses decreased due to a decline in sales of replacement tires. In
Europe, unit sales of tires for passenger cars and light trucks decreased substantially compared to the first half offiscal 2011 due to a decline in sales of replacement tires, as well as tires for trucks and buses. In Asia Pacific, unit
sales of passenger cars and light trucks strongly increased compared to the first half of fiscal 2011. In China, unit
sales of passenger and light truck tires remain unchanged from the first half of fiscal 2011. However unit sales oftires for trucks and buses decreased substantially due to a decline in sales of replacement tires. In the specialty tirebusiness, unit sales of large and ultralarge off-the-road radial tires for construction and mining vehicles strongly
increased compared to those of the first half of fiscal 2011 due to expansion of production capacity.
As a result, net sales and operating income in the tire segment in the first half of fiscal 2012 totaled ¥1,237.5
billion and ¥119.6 billon, an increase of 1% and 33% from the first half of fiscal 2011, respectively.
In the diversified products segment, due to the recovery of demand for automotive parts and construction
products from BSAM’s Diversified Products business, net sales totaled ¥260.4 billion, an increase of 6% from thefirst half of fiscal 2011. Operating income was ¥14.0 billion, an increase of 267% from first half of fiscal 2011.

(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.

3

Bridgestone Corporation (5108)

First half results of fiscal 2012

(2) Qualitative Information on Consolidated Financial Position
Assets, Liabilities, and Net assets positions at the end of the first half of fiscal 2012 were as follows.

(Assets)
In assets, while notes and accounts receivable decreased ¥39.9 billion, short-term investments, merchandiseand finished products and investments in securities each increased ¥56.3 billion, ¥30.5 billion and ¥15.4 billion
respectively. As a result, assets increased ¥111.7 billion compared with the end of the previous fiscal year, to¥2,789.1 billion.

(Liabilities)
In liabilities, while accounts payable-other and long-term borrowings each decreased ¥35.8 billion and ¥17.3
billion, short-term borrowings, commercial paper and bonds each increased ¥50.6 billion, ¥13.6 billion and ¥13.2
billion respectively. As a result, liabilities increased 24.8 billion compared with the end of the previous fiscal year, to¥1,536.5 billion.

(Net assets)
In net assets, while cash dividends paid were ¥9.3 billion, net income was ¥75.2 billion, net unrealized gain on
available-for-sale securities and foreign currency translation adjustments each increased ¥13.7 billion and ¥2.5
billion respectively. As a result, net assets increased ¥86.8 billion compared with the end of the previous fiscal year,to ¥1,252.5 billion.
Consequently, the ratio of total equity to total assets increased 1.3% compared with the end of the previous
fiscal year, to 43.5%.

4

Bridgestone Corporation (5108)

First half results of fiscal 2012(3) Qualitative Information on Projections of Consolidated Results
1) Comparison with fiscal 2011
The Companies anticipate uncertain conditions in fiscal 2012 due to the continuing strength of the Japaneseyen, negative impact from the financial crisis in Europe and the concern of decelerating growth in emerging
countries. In addition, the Companies is expected to face rapid changes in demand and competition worldwide.
Amid such a challenging business environment, the Companies project the following results through theimplementation of Mid-Term Management Plan initiatives.
.
FY 2012 projections
FY 2012 Projections(Revised)

FY 2011 Results

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

3,130.0

3,024.3

105.6

3

Operating income

287.0

191.3

95.6

50

Ordinary income

269.0

179.3

89.6

50

Net income

172.0

102.9

69.0

67

Net sales

Exchange
Rate

Yen

Yen

%

yen/dollar

79

80

(1)

yen/euro

99

111

-

(11)

2) Revision of the projections
Actual results of operating income, ordinary income, and net income for the first half of the fiscal year
ending December 31, 2012, exceeded the projections previously announced on February 16, 2012, as a resultof the favorable raw material prices and initiatives to reduce expenses while the units sales of tires decreased
from original plans due to the weaker demand. Additionally, the company reviewed its consolidated financial
projections for the second half of the fiscal year ending December 31, 2012, which were not updated on May 9,2012, and revised its full-year consolidated financial projections for the fiscal year ending December 31, 2012.

Forward-Looking Statements
The preceding descriptions of projections and plans are “forward-looking statements,” which involve known andunknown risks and uncertainties. Those variables could cause the Companies’ actual performance and results todiffer substantially from management’s projections and plans.

5

Bridgestone Corporation (5108)

First half results of fiscal 2012

2. Other Information (Notes)(1) Application of special accounting treatments for consolidated quarterly financial statements(Calculation for income tax expense)
Income tax expense was calculated based upon an estimated effective tax rate for fiscal 2012.

(2) Additional Information(Application of the “Accounting Standard for Accounting Changes and Error Corrections” and others)
For the accounting changes and error corrections made after the beginning of the first quarter of fiscal 2012,
the companies have adopted the “Accounting Standard for Accounting Changes and Error Corrections”(ASBJ Statement No.24 of December 4, 2009) and the “Guidance on Accounting Standard for Accounting
Changes and Error Corrections” (ASBJ Guidance No.24 of December 4, 2009).

6

Bridgestone Corporation (5108)

First half results of fiscal 2012

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
FY 2011(As of December 31, 2011)

FY 2012 1H(As of June 30,2012)

AssetsCurrent Assets
Cash and deposits

130,343

139,751

Notes and accounts receivable

438,764

398,859

Short-term investments

90,133

146,440

Merchandise and finished products

314,454345,028Work in process

34,614

37,613

Raw materials and supplies

171,411

178,150

Other

152,102167,254

Allowance for doubtful accounts(8,109)(7,910)1,323,716

1,405,188

Buildings and structures, net

322,704

329,024

Machinery, equipment and vehicles, net

347,195

344,190

Other, net

311,432

318,944

Total tangible assets

981,331

992,160

27,94330,569Investments in securities

182,536

197,956

Other

165,116

167,056

Allowance for doubtful accounts(3,299)(3,824)

Total investments and other assets

344,353

361,187

Total Fixed Assets

1,353,628

1,383,917

Total

2,677,344

2,789,105

Total Current Assets
Fixed Assets
Tangible assets

Intangible assets
Investments and other assets

7

Bridgestone Corporation (5108)

First half results of fiscal 2012

(Yen in millions)
FY 2011(As of December 31,2011)

FY 2012 1H(As of June 30,2012)

Liabilities
Current Liabilities
Notes and accounts payable

196,742

183,133

Short-term borrowings

198,115

248,756

Commercial paper

18,93332,534Current portion of bonds

13,17482,711

754

931

Income taxes payable

22,85433,999Accounts payable-other148,756

112,904

Other

198,398

203,160

Total Current Liabilities

797,730

898,132

Bonds

123,079

66,834Long-term borrowings

238,474

221,125

Lease obligations

10,061

10,605

Accrued pension and liability for retirement
benefits

257,630

256,028

Other

84,694

83,822

Total Long-term Liabilities

713,940

638,415

1,511,671

1,536,548

Common stock

126,354

126,354

Capital surplus

122,629

122,628

1,279,978

1,345,881(57,248)(57,245)

1,471,713

1,537,617

97,750111,469

(890)

(674)

(331,784)(329,207)(106,211)(104,755)(341,135)(323,167)

770

1,100

Minority Interests

34,32437,006

Total Net Assets

1,165,673

1,252,557

Total

2,677,344

2,789,105

Lease obligations

Long-term Liabilities

Total Liabilities

Net Assets
Shareholders' equity

Retained earnings
Treasury stock-at cost
Total Shareholders’ equity
Accumulated other comprehensive
incomeNet unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative
instruments
Foreign currency translation adjustments
Post retirement liability adjustment forforeign companies
Total accumulated other comprehensive
incomeStock acquisition rights

8

Bridgestone Corporation (5108)

First half results of fiscal 2012

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
First Half

(Yen in millions)
FY 2011 1H(Six months ended
June 30, 2011)

FY 2012 1H(Six months ended
June 30, 2012)

1,459,125

1,488,970

Cost of Sales

996,295

990,245

Gross profit

462,829498,725

Goods freightage expenses

66,59162,591Advertising and promotion expenses

45,80444,085

Salaries, allowances and bonuses

93,21095,897Retirement benefit expenses

7,089

7,945

Depreciation

11,662

11,512

Research and development expenses

41,362

41,096

Other

103,481

101,810

Total selling, general andadministrative expenses

369,201

364,939

Operating income

93,628

133,785

Interest income

2,156

1,639

Dividend income

3,028

3,968

Other

10,095

9,479

Total non-operating income

15,28015,087

8,560

8,685

61

3,677

Other

8,406

7,528

Total non-operating expenses

17,02819,891

Ordinary income

91,880128,981

Impairment loss

4,676

11,613

Loss on disaster

2,376

－

－

2,903

2,471

－

Total extraordinary losses

9,524

14,516

Income before income taxes andminority interests

82,356

114,464

Income taxes

25,22735,692

Income before minority interests

57,12878,771

Minority interests

3,012

3,504

Net income

54,11575,266Net Sales

Selling, General and Administrative Expenses

Non-operating Income

Non-operating expenses
Interest expense
Foreign currency exchange loss

Extraordinary Loss

Loss on business withdrawal
Loss on adjustment for changes of accounting
standard for asset retirement obligations

9

Bridgestone Corporation (5108)

Consolidated Statements of Comprehensive Income
First Half

Income before minority interests

First half results of fiscal 2012

(Yen in millions)
FY 2011 1H(Six months ended
June 30, 2011)57,128FY 2012 1H(Six months ended
June 30, 2012)
78,771Other comprehensive income
Unrealized gain (loss) on available-for-salesecurities

21,05913,715(91)258

Foreign currency translation adjustments

11,9292,047

Post retirement liability adjustment forforeign companies

3,164

1,456

Share of other comprehensive income inaffiliates

(662)

616

35,39818,09392,52696,865

Shareholders of Bridgestone Corporation

89,65593,235

Minority Interests

2,871

3,630

Deffered gain (loss) on derivative
instruments

Total other comprehensive income
Comprehensive income
Comprehensive income attribute to:10

Bridgestone Corporation (5108)

First half results of fiscal 2012

(3) Notes regarding going concern assumption

Not applicable(4) Notes regarding significant changes in the amount of shareholders’ equity

Not applicable(5) Segment Information
Information about Sales and Income (Loss) by reportable segment
FY 2011 First Half (Six months ended June 30, 2011)(Yen in millions)

Diversified
Tires

Adjustments
Total

Consolidated

Products(Note)Net sales:
External customers－

1,220,058

239,066

1,459,125

1,459,125

Inter-segment

1,222

6,059

7,282

(7,282)－

Total

1,221,281

245,126

1,466,408(7,282)

1,459,125

89,778

3,828

93,606

21

93,628Segment income(Operating income)(Note) Adjustments of segment income refer to elimination of intersegment transactions.

FY 2012 First Half (Six months ended June 30, 2012)(Yen in millions)

Diversified
Tires

Adjustments
Total

Consolidated

Products(Note)Net sales:
External customers－

1,235,685

253,284

1,488,970

1,488,970

Inter-segment

1,839

7,211

9,051

(9,051)－

Total

1,237,525

260,496

1,498,022(9,051)

1,488,970

119,694

14,060133,75530

133,785

Segment income(Operating income)(Note) Adjustments of segment income refer to elimination of intersegment transactions.

11