Financial Results for Fiscal 2011

Bridgestone Corporation
February 16, 2012

Contents

1. Business and Financial Performance for Fiscal 2011 P. 3
2. Consolidated Projections for Fiscal 2012

P. 10

3. Initiatives to Achieve ROA 6% in 2012

P. 15

Copyright © 2011 Bridgestone Corporation

1

1. Business and Financial Performance for Fiscal 2011

Business Environment Surrounding Bridgestone Group in 2011
Estimated Tire DemandCurrency Exchange

Global demand is estimated to increase due torapid growth in emerging countries.
Tire Demand for 2011 : Original Equipment (VS 2010)
Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan87%111%

N. America

106%

152%

Europe110%130%Emerging
countries total*1

108%

122%

Tire Demand for 2011 : Replacement (VS 2010)
Passenger
Tires

Truck and BusTires

US Dollar

EuroFiscal

Fiscal201082788088115 108

111116

Raw Materials
Market trend of natural rubber and crude oil (Average)(Reference)

2011

Japan

106%

106%

97%

105%

Europe103%

98%

NaturalRubber<RSS#3>*(￠/kg)

Emerging
countries total*1

111%

111%

Crude Oil
<WTI>

*2 The numbers of demand are estimated by Bridgestone Corporation

2ndhalf

Yen appreciated against both the dollar and the euro incomparison with 2010.

N. America*1 Total of Thailand, Indonesia, India, and China(Reference)2011
1sthalf(＄/ｂｂl)1sthalf

2ndhalf

FiscalFiscal2010549413

479

366

9892

9580

*Source : Current Prices for Singapore Commodity Exchange Limited

Both the price of NR and crude oil remain at high levels.
Copyright © 2011 Bridgestone Corporation

2Highlights to Financial Results for Fiscal 2011
Increased both net sales and operating income vs. fiscal 2010
Consolidated
Results

Price, Volume, andthe “Lean andStrategic” initiatives(Net sales, Operating income)Results byBusiness/GeographicSegments>

Raw material costs
and appreciated yen<Business Segments>
Tire: Increased net sales and operating income.
Diversified Products:
Increased net sales, but decreased operating income.
<Geographic segments>
Increased sales and operating income in all segments.

Reinforce
Fundamental
Competencies

Based on the “Lean” concept, steadily expanded production capacity by
product groups and operation areas with strong awareness of theoptimum production structures on Group/Global basis.

Balance Sheet
Cash Flow

Reinforced the lean structure. Regarding cash flow, though it is in the
red for FY2011 because of the increases in the working capital due tothe impact of raw material costs, it is in the black for 2nd half 2011.

Copyright © 2011 Bridgestone Corporation

Consolidated Results for Fiscal 2011
Yen/US dollar rate:

8880

(8)

81

Yen/Euro rate:

116

111

(5)

115

2010
Results

2011
Results

VS PY (%)

(Yen in billions)

2,861.6

3,024.3+6Tires

2,379.5

2,539.7+7

Diversified
Products

494.6

500.5+1

Net Sales（ReferenceAug 8, 2011
announcement）
2011 Projections

3,130.0

166.4

191.3

+15194.0（Ratio） 5.8%

（Ratio）6.3%（Ratio）+0.5%（Ratio） 6.2%

Tires

153.1

185.4+21Diversified
Products

13.3

5.8(57)

Ordinary Income

147.9

179.3+21180.0

Net Income

98.9

102.9+4115.0

20 yen22 yen+2 yen

Operating Income*Figures within parentheses mean minus

Dividends

Copyright © 2011 Bridgestone Corporation

3

Analysis of Consolidated Operating Income for Fiscal 2011
(Yen in billions)

Strategic
Depreciation
Price, Mix, Products+4.0
Volume etc. +21.0+313.8

ForeignExch. Loss
△37.0200

SGA△22.0150

RawMaterials△255.0100
166.4

191.3

500(50)(100)

Exchange rate
Sensitivity (full year)
1USD：2.0bil. Yen
1EUR：1.0bil. Yen

(150)

2010
Operating Income2011
Operating Income+24.8

Copyright © 2011 Bridgestone Corporation

Financial Results for Fiscal 2011 : Geographic Segments(Yen in billions)

Net Sales

2010
Results

2011
Results

VS.
PY(%)

Japan

1,154.6

1,229.0+6

The Americas

1,223.9

1,288.6+5

Europe383.8

413.1+8

Other Regions

611.9

699.6

+142,861.6

3,024.3+6

2010
Results

2011
Results

VS.
PY(%)

Japan

61.6

69.5+13The Americas

48.3

61.9+28Europe

7.1

11.3+60

Other Regions

44.9

48.2+7166.4

191.3+15

Consolidated
Operating Income

Consolidated

Copyright © 2011 Bridgestone Corporation4

B/S and C/F Highlights(Yen in billions)

FY 2010

FY 2011(As of Dec. 31, 2010)(As of Dec. 31, 2010)

VS. Dec. 31, 2010

Total Assets

2,706.6

2,677.3(29.3)

Total Equity
Ratio of total equity to total assets (%)

1,176.1
42.2

1,165.7
42.2(10.5)+0.1

Interest-Bearing Debt (Net)

663.1

602.5

(60.6)FY 2010

FY 2011

Cash Flow by Operating Activities
Cash Flow by Investing Activities

247.7(170.5)152.1(177.0)(95.5)(6.5)

Free Cash Flow

77.1

(24.9)(102.1)

Capital Expenditure
Depreciation
ROA (%)

182.6
167.6
3.6

201.3
158.0
3.8

+18.7
(9.6)
+0.2

VS. PY*Figures within parentheses mean minus
Copyright © 2011 Bridgestone Corporation

2. Consolidated Projections for Fiscal 20125

Business Environment Surrounding Bridgestone Group in 2012
Estimated Tire DemandCurrency Exchange

Tire Demand for 2012 : Original Equipment (VS 2011)
Passenger
Radial Tires

Truck and Bus
Radial Tires

123%

125%

Japan
N. America

111%

104%

Europe99%

100%

Emerging
countries total*1

106%

119%

Tire Demand for 2012 : Replacement (VS 2011)
Passenger
Radial Tires

2010

2011

2012

MTP2011

US Dollar

88807785

Euro116

111100110

The appreciation of yen will continue in 2012,and is estimated to be stronger than the estimation
for MTP2011.

Raw Materials

Truck and Bus
Radial Tires

Japan

97%

99%

N. America

103%

109%

Europe94%

99%

Emerging
countries total*1

114%

111%

*1 Total of Thailand, Indonesia, India, and China*2 The numbers of demand are estimated by Bridgestone Corporation

Copyright © 2011 Bridgestone Corporation

Consolidated Projections for Fiscal 2012
Yen/US dollar rate:8077(3)85

Yen/Euro rate:

111100(11)1102011Results

2012Projections

VS PY (%)

2012 Projectionsfor MTP2011

3,024.3

3,240.0+73,600.0

Tires

2,539.7

2,720.0+7

Diversified
Products

500.5

530.0+6(Yen in billions)

Net Sales

191.3

269.0+41

270.0（Ratio）6.3%（Ratio）8.3%（Ratio）+2.0%（Ratio） 7.5%

Tires

185.4

247.0+33

Diversified
Products

5.8

22.0+279

Ordinary Income

179.3

250.0+39

Net Income

102.9

168.0+63Dividends

22 yen32 yen+10 yen

Operating Income

Copyright © 2011 Bridgestone Corporation

6Analysis of Consolidated Operating Income for Fiscal 2012
(Yen in billions)StrategicPrice, Mix, Products
Volume etc. +13.0+127.6
ForeignExch. Loss
△35.0
Depreciation
SGA
△10.0
△41.0

Raw
Materials+23.0

Exchange rate
Sensitivity (full year)
1USD：3.1bil. Yen
1EUR：1.1bil. Yen

2011
Operating Income

2012
Operating Income+77.6

Copyright © 2011 Bridgestone Corporation

Financial Projections for Fiscal 2012 : Geographic Segments(Yen in billions)

Net Sales

2011
Results

2012
Projections

VS.
PY(%)

Japan

1,229.0

1,300.0+6

The Americas

1,288.6

1,360.0+6Europe

413.1

420.0+2

Other Regions

699.6

770.0

+103,024.3

3,240.0+72011Results2012
Projections

VS.
PY(%)

Japan

69.5

126.0+80

The Americas

61.9

73.0+18Europe

11.3

16.0+41

Other Regions

48.2

65.0+35191.3

269.0+41

Consolidated
Operating IncomeConsolidated

Copyright © 2011 Bridgestone Corporation

7

3. Initiatives to Achieve ROA 6% in 2012

Initiatives to Achieve ROA 6% in 2012
Expand strategic
products /Mix improvement

Achieve ROA 6% in 2012
Reinforce fundamental
competencies

Thorough “lean assets”

Thorough “Lean ＆ Strategic”
Copyright © 2011 Bridgestone Corporation

8

Initiatives to Achieve ROA 6% in 2012
Expand strategic products / Mix improvement
Passenger car radial tires for
replacement market
Y09⇒Y12（Sales qty. %）Off-the-road radial tires forconstruction and mining vehicles (ORR)

Y09⇒Y12（Sales rubber weight %）POTENZA S001 RFT

Sales volume of strategic tire
products showing higher growth thanthat of overall PSR

Steady sales growth byincreasing production capacity

Reinforce fundamental competencies
Reinforce cost competiveness through strategic procurement
and the manufacture of our own high-quality raw materials,
specification optimization, improved manufacturing efficiencies
that reduce cost while continuing to enhance safety and quality.

Ultralarge ORR

Copyright © 2011 Bridgestone Corporation

Initiatives to Achieve ROA 6% in 2012
(Yen in billions)

Drivers ofoperating income
increase

MTP20112009⇒2012
increase2009⇒2012
increase
projections

Expansion ofstrategic products+67.0

Reinforce
fundamental
competencies

vs.
MTP20112009⇒2011
results

2011⇒2012
projections

+64.0

+51.0

+13.0

96%

+46.0

+52.0

+34.0

+18.0

113%

Diversified
products business

+33.0

+28.0

+10.0

＋18.0

85%

Unit increase,
etc.

+49.0

+49.0

+20.0

＋29.0

100%

Copyright © 2011 Bridgestone Corporation9Initiatives to Achieve ROA 6% in 2012
Thorough “lean assets”
Finished Goods Turnover Months

Account Receivable Turnover Months△19%1.8△23%2009

2.1

2012

1.8

1.4

1.7

1.4
12009

2012

Enhance efficiency ofmanagement/operation

Reinforce the Group’s structure to be leaner
Total assets turnover
Y09
0.93

Y10
1.04

Y11
1.12

Y12
Over 1.2

Maximize assets efficiency
Copyright © 2011 Bridgestone Corporation

Initiatives to Achieve ROA 6% in 2012
3.6

3.2
2.6

2.9

◆

3.0
270.0

269.0
191.3
166.4

75.7

<Reference>
MTP2011

Operating income ratio

2.9%5.8%

6.3%

8.3%

7.5%

Total assets turnover

0.93

1.04

1.12

Over 1.2

Over 1.2

ROA

0.0%

3.6%

3.8%

Over 6%

6.0%

Copyright © 2011 Bridgestone Corporation

10Statements made in this presentation with respect to Bridgestone's current plans,estimates, strategies and beliefs and other statements that are not historical facts are forward-looking
statements about the future performance of Bridgestone. Forward-looking statements
include, but are not limited to, those statements using words such as "believe," "expect," "plans,""strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words ofsimilar meaning in connection with a discussion of future operations, financial performance,events or conditions. From time to time, oral or written forward-looking statements may also beincluded in other materials released to the public. These statements are based on management'sassumptions and beliefs in light of the information currently available to it. Bridgestone cautions
you that a number of important risks and uncertainties could cause actual results to differ
materially from those discussed in the forward-looking statements, and therefore you should notplace undue reliance on them. You also should not rely on any obligation of Bridgestone to updateor revise any forward-looking statements, whether as a result of new information, future events orotherwise. Bridgestone disclaims any such obligation.

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