Mid Term Business Plan (2024-2026)- 24MBP Part 2: 24MBP Business shaping scenario

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

Shu Ishibashi

March 1, 2024

Part 2:
24MBP Business shaping scenario

2/65Changes in business environment & Strategic direction
Business environment“Change becomes commonplace”“Transform change to opportunity”

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

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

Impact on Bridgestone

Geopolitics

U.S.: Unpredictable political trends & economic outlook
Russia – Ukraine: Prolonged conflict
Middle East: Impact to the situation in the Middle East fromprolonged Israeli-Palestinian conflict /Red Sea risk becoming apparent
China – Taiwan: Continued tension between the U.S., China, and Taiwan• Increased volatility in global business especially in the N. American business• Need to closely monitor impacts on energy & raw material procurement /Increased ocean freight from shipping route detour• Need for steady implementation of measures to address global procurement,
global supply chain, and business risks

Mobility &Technology

Mobility-related trends:• EV adoption speed softens, but the mid-long term adoption& expansion trend doesn’t change• Change in desired tire value(Challenges specific to EVs becoming apparent: premature/irregular wear)
Passenger car industry: Major manufacturers’ shift to EVs& rise of emerging EV manufacturers
Generative AI: Dramatic improvement of AI capabilities• Leverage new opportunities: “Customize” diverse performance for diverse
mobility (Value creation through the fusion of ENLITEN and BCMA)<OE> ENLITEN – Dan-Totsu product being attentive to OEM’s problems<REP> “Product planning with sharpened edge” focusing on end-user’s problems• Expand original equipment for EVs, and strengthen approach to premium &prestige OEMs
• Maximize opportunity of generative AI(Improve customer experience, operational efficiency, and productivity)

Sustainability-related trends:• TRWP & 6PPD response, sustainable raw material procurement,
response to rising green energy cost
• Evolution of the sustainability business model → Establish a circular business model

Sustainability

Tire industry
structure

3/65• Increasing social demand related to TRWP
• Increasing demand for nature positive & sustainable material

Profit structure• Presence change within the tire industry• Difference in earning power becoming more prominent→ Possibility of a restructuring of the tire industry• Reinforce earning power – Need for evolution to the “next stage”→ Create good business quality / Create good tires / Create good business /Create new business sowing good seeds for the future

24MBP Business shaping scenario: Further focus on value creation
Create good business quality “Passion for Excellence” (Management, Working & business quality improvement)• Respecting being on-site (Genbutsu-Genba), perform steady and agile PDCA while sticking to basics /Combination of continuous improvement and innovation / Pursuit of operational excellence• New & true glocal management structure focused on Genbutsu-Genba – ”Maximize effectiveness & efficiency”• Have a healthy business risk sensitivity• Tackle past negative legacies squarely / From volume -oriented to quality & value oriented – Next stage• Talent investment – “Enhance talent creativity”/ Culture change based on the “Bridgestone E8 Commitment”• Accelerate DX: Enhance use of generative AI⇒Improve productivity (Incl. expanding AI algorithm use in business)• Technology & innovation: Reinforce co-creation activities leveraging BIP⇒Reinforce creativity / Reinforce IP strategv

4/65

Improve management and working &business quality• Japan: Reinforce training at each level(management / executive / managerial / staff)• Global: Conduct training from the
management & executive level in each region→Expand to managerial & staff levels

Create good tires• Realize “ultimate customization” that sharpens edge in performances that not only meet the needs & wants of market/customers
but inspires them.
“ENLITEN” especially for “EV tires” – 24MBP: Expand Generation 1⇒ Build technology to launch Generation 2 in 27MBP• Start “BCMA” + shift to Green & Smart – R&D and manufacturing transformation / Support “ultimate customization”

Create good business

Create corporate value through balancing social value and customer value creation and gaining competitive advantage• Reduce business cost: BCMA, Green & Smart, steady on-site productivity improvements, global procurement, global SCM
logistics transformation• New premium tire business model: Channel, retread, building a sustainable premium brand• Evolve the sustainability business model: Toward the realization of carbon neutrality & circular economy and nature positive

Create new businesssowing good seeds
for the future

•
•
•
•

Truck & bus solutions: Establish mobility tech business in North America – Especially “Fleetcare” program
Mining solutions: New value creation through real x digital – New challenge
Aviation solutions: Strategic starting point to establish solutions business model including retread
Sowing new seeds: Evolve Air Free

24MBP Business shaping scenario: Further focus on value creation
Create good business quality “Passion for Excellence” (Management, Working & business quality improvement)• Respecting being on-site (Genbutsu-Genba), perform steady and agile PDCA while sticking to basics /Combination of continuous improvement and innovation / Pursuit of operational excellence• New & true glocal management structure focused on Genbutsu-Genba – ”Maximize effectiveness & efficiency”• Have a healthy business risk sensitivity• Tackle past negative legacies squarely / From volume-oriented to quality & value oriented – Next stage• Talent investment – “Enhance talent creativity”/ Culture change based on the “Bridgestone E8 Commitment”• Accelerate DX: Enhance use of generative AI⇒Improve productivity (Incl. expanding AI algorithm use in business)• Technology & innovation: Reinforce co-creation activities leveraging BIP⇒Reinforce creativity / Reinforce IP strategv

5/65

Improve management and working &business quality• Japan: Reinforce training at each level(management / executive / managerial / staff)• Global: Conduct training from the
management & executive level in each region→Expand to managerial & staff levels

Create good tires• Realize “ultimate customization” that sharpens edge in performances that not only meet the needs & wants of market/customers
but inspires them.
“ENLITEN” especially for “EV tires” – 24MBP: Expand Generation 1⇒ Build technology to launch Generation 2 in 27MBP• Start “BCMA” + shift to Green & Smart – R&D and manufacturing transformation / Support “ultimate customization”

Create good business

Create corporate value through balancing social value and customer value creation and gaining competitive advantage• Reduce business cost: BCMA, Green & Smart, steady on-site productivity improvements, global procurement, global SCM
logistics transformation• New premium tire business model: Channel, retread, building a sustainable premium brand• Evolve the sustainability business model: Toward the realization of carbon neutrality & circular economy and nature positive

Create new businesssowing good seeds
for the future

•
•
•
•

Truck & bus solutions: Establish mobility tech business in North America – Especially “Fleetcare” program
Mining solutions: New value creation through real x digital – New challenge
Aviation solutions: Strategic starting point to establish solutions business model including retread
Sowing new seeds: Evolve Air Free

Create good business quality:“Passion for Excellence” (Improve management quality and working & business quality)◼ Promoted the modernization of management and quality
management activities in the 1960s

Quality Mission Statement (2015)“Continuous improvement” is our global asset

Innovation & improvement- Achieve Dan-Totsu through “continuous improvement”→ Received the Deming Application Prize and established thecompany code in the same year

Create customer value & emotion“Serving Society with Superior Quality”

Role of individual(Innovation & improvement)

Role of organizationRole of leadership
Receiving the Deming Application Prize (1968)

Defining the company code (1968)

Bridgestone DNA “focus on quality” – Globally reaffirmed the importance of quality management:

Perform steady & agile PDCA while sticking to basics / Combination of continuous improvement & innovation/ Pursuit of operational excellence / Ensure 3S “Seiri, Seito, Seiso” + Seiketsu and Shitsuke

6/65

Improve management quality
and working & business quality

Create good business quality:

Improve management quality and working & business quality
Return to origins – Bridgestone DNA
Receiving the Deming Prize / Deming Plan – reinforcing quality management◼ Deming prize: The world’s highest-ranking award for quality control established in 1951.

◼

Awarded to companies that demonstrate distinguished quality control.
Bridgestone’s challenge: Promoted the Deming Plan in the 1960s aiming to receive
the Deming Application Prize

Bridgestone’s unique Deming Plan
Basic thought

Good company quality makes good quality of products and services

5 concepts① Master PDCA ② Use why why analysis (WHY-WHY-WHY)③ Promote rational standardization ④ Explain by using accurate data
⑤ Control important points

1968:
Received the Deming Application Prize
for the first time in the tire industry⇒ Established the company code “Serving Society
with Superior Quality” the same year

3S “Seriri, Seiton, Seiso” + Seiketu and Shitsuke
Seiri(Select &remove)Seiton(Sort)

Seiso(Keep
clean)To distinguish necessary and unnecessary
things and dispose unnecessary things
To clarify and maintain the conditions of what,
where and how much to keep with easy accessto everyone
To clean personal belongings and things inworksites and recognize abnormality
Bridgestone Safety Mission Statement

Seiketsu(Standardize)

Shitsuke(Sustain)

Executing the above 3, To always maintain andstandardize conditions of Seiri (Select & remove),
Seiton (Sort), Seiso (Keep clean)To sustain the above 4, make it a habit in theworkplace as a rule/discipline

Persist in ensuring management quality and working & business quality improvement globally,as the basis in pursuing operational excellence
7/65Create good business quality

Enhance talent creativity◼ “Reinforce talent investment, increase added value and create a virtuous cycle of value creation”– drive initiatives to enhance talent creativity while also working on improving productivity to enable continuous
investment in talent

KPI for talent creativity(Adj. operating profit ÷ talent investment)

117

100

119

110

130 level

117

Talent investment
per person (Japan)

24MBP avg.

125level

115

Understanding & empathy for Bridgestone

Training in place of founding(Kurume visit)+10pts level2019 2020 2021 2022 2023 2024 2025 2026

Enhance talent creativity

results

900 people

Total participants

Digital 100-day Training

24MBP

Total participants

Over

Opportunity for learning & challenge

74

112

100

Activities in 2023 (Japan) → Continue reinforcement

21MBP→24MBP

21MBP avg.

2026

2023

Over

On-site challenge on a voluntary basis

700 people

15 people took part

Genba 100-day Challenge
Expand globally from 2024

both inside & outside Japan

Motivated talent take on the challenge of assisting
managers at an early stage

Productivity & creativity improvement
leveraging generative AI (algorithms)
Started global utilization from 2H 2023
[Examples of use] • Automatic program generation

Improve productivity• Automatic creation of e-mails, meeting minutes,
document summary• Automatic translation of conversations/texts• Automatic schedule adjustment

8/65

10 people took part

Management Challenge

Improving the working environment
Based on requests for improvement in the working environment,
execute measures that can be felt by those on-site

Improvement of production site
environment
Addressing female-specific health issues
using technology

FemTech program

Approx.

4 B JPY

250 participants
Equivalent to 20% of all female employees

Create good business quality

Toward culture change ＆ new DNA creation

Bridgestone DNA

Align with business strategy

Global common strengths: Quality and customer oriented

Global common strengths: Recognition & embodiment of visionand strategy

Improve each individual’s working & business quality

Global CEO on-site (genba) townhall meeting

Further reinforcement••

2021: 37 meetings, 2022: 18 meetings, 2023: 20 meetings

Global common challenges: Execute operation agilely

Global management structure: 47 areas

Local (based on area) × Global (ONE BRIDGESTONE)••

Clarify responsibilities based on new area division to execute
management being closer to on-site (genba)
Sensitively catch and respond to signals of new management issues
through conducting PDCA agilely, focusing on execution and results

Diverse talent to shine
Global common challenges: DE&I, talent development
Further reinforcement
Diverse talent to shine through the spread of individual successand confidence, while aiming to enhance corporate value
Place to demonstrate entrepreneurship: Softrobotics Ventures
Genba 100-day Challenge: Expand globally from 2024
Bridgestone Next100:

Develop future management globally

Corporate philosophy 4 concepts of foundation
Bridgestone DNA:
“Focus on quality,” “Respect for being on-site,” “Being attentive andsupportive of customer problems,” and “Challenging spirit”

Management quality and working & business quality improvement
workshop•Reinforce activities to re-enhance understanding regarding Bridgestone’s unique
Deming Plan
Initiate workshop from executive members
Conduct during 2024 in global

Promote•culture change
from the perspective • Bridgestone’s birthplace training: Further reinforce workshops for on-site and young employeesof value creation Global common challenges: Collaboration (break down the silos)(Conduct workshop for G-EXCO member in Kurume, Bridgestone’s birthplace, in March 2024 )(Bridgestone Next100 will also visit Bridgestone’s birthplace）

Create an organizational culture of mutual trust and cooperation

3S (Seiri, Seiton, and Seiso meaning select & remove, sort, and keep clean)＋Seiketsu (Standardize) & Shitsuke (Sustain)

Create new corporate culture & DNA
Globally strengthen the linkage
with global BGA and TQM activities

Further reinforcement( TQM entry cases: over 2,000/ year)

Connect each to E8 and concrete activities in actual
business and on-site (genba) improvement activities

Promotes not only recognition and understanding,but also behavioral*BGA: Bridgestone Group Awards, TQM: Total Quality Management

9/65

Create good business quality

Bridgestone’s DX – Support value creation and productivity improvement
Faster, easier, and more accurate with larger data
Engineering Chain Feedback to development of “Dan-Totsu product”

2009～

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

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

Craftperson skills

Material

Product development

Manufacturing

2010～

1980～

Real

Contact tosociety & customer

2016 AI-implemented tirebuilding system
EXAMATION®

Collect tire data
and mobility data

e.g. Co-creation with JAL

Digital2020 -

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

Tire design utilizing simulation

Global digital talent(Advanced& Intermediate)

10/65

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

→ To the level of 2,000 people in 2026

Visualize & standardize“craftperson skills”
Promote shift to smart

Increasecreativity

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

Connect the value chain and link with the solutions business
Amplify value of “Dan-Totsu product”
Enhance internal training& co-create with partners

Improve productivity & creativity leveraging
generative AI- Improve working efficiency-

Create good business quality

Value creation through technology innovation: “From interaction with empathy to co-creation”
Promote co-creation leveraging BIP

Opened Apr. 2022

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

2023

11/65

Customer & partner visits

Approx.

2200 visitors

Evolved into
joint research(cumulative total from 2022)(Open Innovation Hub)

2024

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

17 cases24MBP Business shaping scenario: Further focus on value creation
Create good business quality “Passion for Excellence” (Management, Working & business quality improvement)• Respecting being on-site (Genbutsu-Genba), perform steady and agile PDCA while sticking to basics /Combination of continuous improvement and innovation / Pursuit of operational excellence• New & true glocal management structure focused on Genbutsu-Genba – ”Maximize effectiveness & efficiency”• Have a healthy business risk sensitivity• Tackle past negative legacies squarely / From volume-oriented to quality & value oriented – Next stage• Talent investment – “Enhance talent creativity”/ Culture change based on the “Bridgestone E8 Commitment”• Accelerate DX: Enhance use of generative AI⇒Improve productivity (Incl. expanding AI algorithm use in business)• Technology & innovation: Reinforce co-creation activities leveraging BIP⇒Reinforce creativity / Reinforce IP strategv

12/65

Improve management and working &business quality• Japan: Reinforce training at each level(management / executive / managerial / staff)• Global: Conduct training from the
management & executive level in each region→Expand to managerial & staff levels

Create good tires• Realize “ultimate customization” that sharpens edge in performances that not only meet the needs & wants of market/customers
but inspires them.
“ENLITEN” especially for “EV tires” – 24MBP: Expand Generation 1⇒ Build technology to launch Generation 2 in 27MBP• Start “BCMA” + shift to Green & Smart – R&D and manufacturing transformation / Support “ultimate customization”

Create good business

Create corporate value through balancing social value and customer value creation and gaining competitive advantage• Reduce business cost: BCMA, Green & Smart, steady on-site productivity improvements, global procurement, global SCM
logistics transformation• New premium tire business model: Channel, retread, building a sustainable premium brand• Evolve the sustainability business model: Toward the realization of carbon neutrality & circular economy and nature positive

Create new businesssowing good seeds
for the future

•
•
•
•

Truck & bus solutions: Establish mobility tech business in North America – Especially “Fleetcare” program
Mining solutions: New value creation through real x digital – New challenge
Aviation solutions: Strategic starting point to establish solutions business model including retread
Sowing new seeds: Evolve Air Free

Create good tires※ PS: Passenger car tires, TB: Truck & bus tires, OR: Off-the-Road tires

From volume to value: Accelerate focus on premium
TB (replacement)

PS premium tires (replacement)*U.S., Europe, Middle East: 18 inch & above
Other regions: 17 inch & above

Premium tire brand + premium tires in each region

Large tires (OE + REP)
Ultra-large tires

Retread tires
160,000

ENLITEN
equipment
Approx.

65%

ENLITEN
equipment

ENLITEN
equipment

Approx.

100%

Approx.

Approx.

70%

25%

Approx.

40%

3%100,000

Further
expand

2021

13/65

2023

Approx.

90% Approx. 90%

premium ratio

Approx.

100%

Ratio of ultra-large
63 inch MASTERCORE

80,00060,000Approx.

20%
36%140,000

120,000

ENLITEN
equipment

Premium ratio
Approx.

70%

ENLITEN
equipment

8%

57%

All ultra premium tires
Reinforce sales & market share increase

New tires

Other tires

ENLITEN
equipment

OR Ultra-large & large

Increase sales & market sharefor new tires + retread

Accelerate shift to premiumHigh rim diameter tires

Height of graph: Based on volume

Retread ratio

45%

Approx.

2026

48%
2030

2021

2023

Approx.

50%

2026

50%

40,00020,000

0

2030

2021

2023

2026

2030

Create good tires

From volume to value: Premium tires for passenger cars (replacement)
Accelerate shift to PS high rim diameter tires (replacement) and premium tires
High rim diameter tires*U.S., Europe, Middle East: 18 inch & above
Other regions: 17 inch & above

N. America

EuropeAsia & Pacific, India, China

Total premium ratio

80

70%

Approx.

69%

15%

75%

Approx.

60%

17%

65%

Approx.

52%

25%

Approx.

22%

50%

Approx.

38%

14/65

Total premium ratio

55%

Total premium ratio

Approx.

2023

Japan

Total premium ratio%

Approx.

Other tires

Premium tire brand + premium tires in each region

2024

2025

2026

2023

2024

2025

2026

Approx.

62%

48%

25%

Approx.

23%

45%

Approx.

39%
2023

30%

Approx.

28%

25%

Approx.

20%
2024

2025

2026

2023

2024

2025

2026

Create good tires

Premium tires for passenger cars - Create “new premium” through “ultimate customization”
Change insocial environment

Change invehicle powertrain

Change invehicle value

Change invehicle architecture

Drive the electrification of vehicles & software-first development
Desired tire performancefor conventional ICEs*
Handling stability
Quietness
Ride comfort

Fuel efficiency
Wear life

15/65

Change in desired tire performance:
Realize “ultimate customization” of diverse performance for diverse mobility
Improvement
Reduce environmental
in driving range /impact / Long-life
Low electricity consumption
Light weight
Low rolling
resistance

Respond to EV batteries(Increase in vehicle weight, higher vehicle height,
ensuring battery loading space, etc.)

Enhance resource
productivity

Increased
severity on tires

Increase in wheel
and rim diameter

High wear resistance

Increase vehicle
space utility

Smaller section widthHigh durability(Especially for compact cars)* ICE: Internal Combustion Engine

Bridgestone’s base technology for “products”“New premium”

BCMA
FusionCreation of
corporate value
Reinforcement of
earning power

Value creation

Enhance value
Create value
Improve sales mix

Ultimatecustomization
Differentiation

FusionGaining competitive
advantage

Gen2

Simplification

Reducebusiness cost

Conventional

Improve product power－Generate customer delight① Expand base performance (Conventional → Gen1→ Gen2)② Elevate all conventional performances, and largely evolve
environmental performance and/or performance that not only
meet the needs & wants of specific market/customers but
further inspires them (=”sharpen edge”)

Base technology for
manufacturing and R&D

Reduce cost ＋
Reduce environmental
impact16/65

Base technology for
product design“New premium”◼ Enables customization by fusing desired complex
performances while expanding the performance spider chart◼ Improves agility by expanding the performance spider chart(in product design)(social & customer value)(Enhance value,
reduce business cost)Base technology to “produce” Dan-Totsu products customized to desired performanceby being attentive to and deeply understanding customers and markets and/or toperformance that creates unique value

BCMA

Expand performance
spider chart
Sharpen “edge”

Gen1
Conventional

Tire performance
spider chart

FusionReduce cost－Simplification

Performances that do
not necessarily
contribute tocustomer delight will
only improve slightly

Customization

Module３

Support “ultimate customization”, agilely provide Dan-Totsu
products customized by ENLITEN and with “sharpened edge”
through simple operations instead of planning/preparing
products individually

Module２◼ Simplification － Enable cost reduction in development
and production◼ Simplification － Improve agility (development, production)

Module１

Customize performanceflexibly & agilely permarket/customer
Simplification

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

“Ultimate customization”
Being attentive to customers, sharpen edge
in performance that not only responds tovarious customers’ needs and wants but
further inspires them.

17/65

Create good tires

Premium tires for passenger cars (original equipment):“New premium in EV era” ENLITEN - OE/REP coordination◼ Develop “ultimate customization” enabled by ENLITEN technology: By proving value, begin expanding OE fitment
Strengthen approach to premium vehicles & OEMs as well as prestige OEMs (OEMs in Japan / Europe / U.S., emerging EV OEMs, etc.)⇒ Steadily take in REP recursion demand from OE and promote improvement of sales mix for premium tires◼ Number of car models with
ENLITEN OE fitment (global)
Non-EV◼ EV models with OE fitment*

Approx.

EV

250

OEMs

RZ

NissanARIYASUBARUSOLTERRA

ToyotabZ4X

CHEVROLET

Blazer EV / Silverado

Fisker

Ocean

GMC

SierraAbarth500 abarth 595 elettrica

AUDI

Q4 e-tronBMW

iX / iX1 / i7 / i5

FIAT

500e

Maserati

Grecale Folgore

Mercedes-Benz

EQB / EQA / EQXXMINICountryman

PorscheMacan 4 / Macan Turbo

SEAT

Cupra Born

SKODA

ENYAQ

VW

ID.3 / ID. 4 / ID.7

NIO

eT7

SAIC

MG Mulan

X PENG

X9

TaiwanFoxtronModel C

Vietnam

VinFast

VF6

Japan

N. America

Approx. 150

150

100

50

27

45

20
7

29
16

2021

2022

0

Europe75
44

Approx. 100

31
2023

China

2026 plan

Vehicle model
Lexus

250

200

Equipped*EV OE fitment as of the end of 2023

18/65

New EVs (initial stage)
Survey on OE⇒REP recursion demand*Survey by Bridgestone in 2023

Premium EV users in the initial stage have ahigher tendency for recursion demand
from OE to REP tires
Link with expansion of products equippedwith ENLITEN– Capture OE⇒REP recursion demand

Percentage of users who choose the same tire brand(manufacturer) for their first tire replacement after
purchasing a new car

EVvs. conventional
ICEs

50%

Approx. 60%

Approx. 65%+ approx. 15pp

+ approx. 15pp

+ approx. 15pp

Approx.

Create good tires

Premium tires for passenger cars (replacement):“New premium in EV era” ENLITEN - value & demand creation
Strengthen approach to premium & prestige OEMs
Expand OE fitment including for EVs(OEMs in Japan / Europe / U.S. / China, etc.)

Original Equipment

Improvement in driving range/ Low electricity consumption

Replacement

Reduce environmental impact / Long-life

Hardware-defined vehicle
Customertouch point

Increased severity on tires

Retail & service network① Touchpoint with customers & cars
- Be attentive to & deeply understand customer problems ② High-quality service & maintenancethrough the retail network

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

19/65

Software-defined vehicle
Customertouch point

Field engineering

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

Gather insight from
Genbutsu-Genba observations &interviews to users

Dan-Totsu products
Tire product planning & development withcustomer problems as the starting point⇒ Solve with “ultimate customization”

Generate customer delight with
Dan-Totsu products

Create good tires

Premium tires for passenger cars (replacement): ENLITEN technology - “ultimate customization”
EuropeN. America

Japan

Bridgestone’s first EV
specialized product for
replacement equippedwith ENLITEN

OE-REP linked productanticipating EV expansion
Launched Sep. 2023

Launched Feb. 2024

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

Launched May 2023
Braking

Dry Braking
Noise

Dry Handling

The first ENLITEN productfor replacement in Japan

Wet HandlingDry Handling

Comfort

Noise

WET

ComfortMCN

ComfortLight weight
WeightWear resistance
RRC

MCN

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

WeightLow rolling resistance

Quietness

Handling

Wear resistance
MCN

More than 20% higher wear resistance vs.
Bridgestone’s conventional product.
Significantly improved WET performance and rolling
resistance, important performances in the European
market. Balanced in every performance at a high dimension.

Wear resistance

WET
Fuel efficiency

Comfort achieved from superior quietness, and driving
performance refined with highly responsive handling.
Contribute to the realization of sustainability throughreduced weight and use of recycled & renewablematerials.

Based on ENLITEN technology, create value through “ultimate customization” sharpening edge according to customers’ needs & wants
20/65

Create good tires

Global expansion of products equipped with “new premium” ENLITEN*LT: Light truck tires

Approach for
Dan-Totsu ENLITEN product planning

Expansion plan for PS & LT* replacement tires
equipped with ENLITEN (Global)

Achieve both driving and environmental
performance at a high level.

Expand new ENLITEN products with sharpenededge ensuring competitiveness, as needed.

Approx.

100

Approx.

100%

products

45 products
Approx. 65%

Launch of products equipped with Approx.
ENLITEN (cumulative total)

Especially improve wear/irregular wear
resistance & electricity consumption along with driving performanceas base performance, as a new premium in the EV era.

ENLITEN equipment %Plan for major new premium products (2024-2026)& performance to sharpen edge

Approx. 20 products
Approx. 20%(Japan, N. America & Europe)

Our traditional strengths ice & snow performance,
wear resistance(Japan, N. America, etc. )(Asia, etc. )Comfort, wear resistance,and electricity consumption
optimal for EVs

9 products
8%
2023

・・・

2024

2025
24MBP

21/65

2026

2030

Create good tires

Premium tires for passenger cars (replacement): “New premium in EV era” ENLITEN
Provide customers with new value
Gain trust◼ Have customers recognize the valueof Dan-Totsu products- Launch ENLITEN gen 2 and expand

Build technology to launch products
toward the 2nd stage of new premium◼ New brand power linked withsustainable global motorsports“Sustainable premium”

ENLITEN introduction to expansion phase
Create value◼ Expand ENLITEN Generation 1⇒Build technology to launch Generation 2 in 27MBP◼ OE: Expand target premium/prestige vehicle models and emerging EVs◼ Capture OE⇒REP recursion demand◼ Solve challenges faced in OE⇒Create demand in REP◼ REP: Strengthen channel network & area on-site (Genbutsu-Genba) capabilities
Improve UX at customer touchpoints combining real & digital→ Generate customer delight

21MBP

22/65

1st stage of new premium
24MBP

2nd stage of new premium
27MBP

R&D and manufacturing transformation – with BCMA at the core –Tread (tire surface)

Customization
By consolidating tire parts into 3 modules and sharing
them among different products, simplify the supply chain,
and improve agility in development & production

Reduce business cost
(Optimize cost + reduce
environmental impact)

Product
strategy

23/65

R&D

Procurement

Production
Plan

ManufacturingCarcassBelt(tire skeleton)(reinforces tire)

Simplification

Logistics

Sales

Use

3R

Create good tires

R&D and manufacturing transformation:
Promote creation of BCMA’s business cost reduction benefit◼ Pursuing the essence of R&D and manufacturing based on-site (Genbutsu-Genba)
Secondary benefit⇒ From a concept, build as a value creation model
Primary benefit

Primary benefit

Direct benefit from BCMA introduction (module sharing):
Create benefit from the 1st year of BCMA introduction - 2024

Benefit from evolution of R&D and manufacturing through BCMA
deployment such as improved capacity in production process andreduced workload at production sites:
Create benefit from the 2nd year of BCMA introduction - 2025

(Reduce changeover of material, parts, and equipment by product, streamline
development by module sharing)

BCMA benefit gentan-i* by plant

BCMA deployment rate

Plants with challenges in R&D and manufacturing
power have greater room for improvement, andgentan-i tends to be larger# of products with BCMA application
BCMA=
deployment rate
Total # of products

BCMA global benefit amountAccelerate value creation by steadily
deploying BCMA in each plant

BCMA global benefit

Amplificationof value

Secondary benefit toemerge from the 2nd year
of BCMA introduction

Low
Model plant:

24/65

Total BCMA benefit

High(BCMA benefit gentan-i × BCMA deployment rate)

Tochigi (Japan)

Nongkhae (Thailand)

Joliette (Canada)

Burgos (Spain)

Secondary benefit
Primary benefit2024

1st year2025
2nd year2026
3rd year・・・

BCMA
introductionCreate good tires

R&D and manufacturing transformation:
Promote creation of BCMA’s business cost reduction benefit
Clarify role and responsibility of 45 new tire plants globally (by June 2023)

Americas
EuropeVisualize Green & Smart power

Productivity

Green axis

Asia
Japan

Visualize manufacturing capability
Bridgestone EAST
- Japan & Asia -Bridgestone WEST
- Europe & Americas -Smart axis

Flexibility

Bridgestone WEST - Europe & Americas - :High Green & Smart power, but challenges in manufacturing capability, especially in flexibility
Bridgestone EAST - Japan & Asia - :Relatively low Green & Smart power but high manufacturing capability (productivity & flexibility) based onstrong operational excellence, and contribute to global premium tire production as the core of manufacturing

25/65

From 2024
Start creating benefits by BCMA
◼ Designate 4 plants for PS tire production
as model plants based on based on theclarified role & responsibility of 45 plants< Global model plants>
Bridgestone
WEST

Joliette plant (Canada)
Burgos plant (Spain)

Bridgestone
EAST

Tochigi plant (Japan)
Nongkhae plant (Thailand)

24MBP
2024: Start benefit creation
2025 – 2026: Accelerate benefit creation

Create good tires

R&D and manufacturing transformation:
Promote creation of BCMA’s business cost reduction benefit◼ Create benefit according to role & responsibility⇒ Deploy initiatives in model plants to other plants

Bridgestone WEST
Burgos plant (Spain)

Joliette plant (Canada)

Role & responsibility

BCMA benefit creation• Main REP plant in Europe• Supply source within Europe• Manufactures a wide variety
of products• Promote BCMA deployment⇒ Deployment rate: Approx. 60% (2026)• Reduce changeover man-hours throughmodule sharing• Streamline production planning⇒ Thoroughly reduce conversion cost
• Simplify development through BCMA
deployment ⇒ Streamline development cost

Bridgestone EAST
Nongkhae plant (Thailand)*BCMA deployment rate is basedon production volume (％)

Primary benefit

Leads the Asian region
Primary benefit

Role & responsibility

BCMA benefit creation• Main plant supporting
production of HRD &premium tires for the Asian
region• Supplies a wide variety of
products to wider Asia
• Relatively highmanufacturing power• Promote BCMA deployment⇒ Deployment rate – 2024: 0%⇒ 2026: Approx. 30%• Reduce changeover man-hours
through module sharing• Streamline production planning• Simplify production
through BCMA
⇒ Thoroughly reduce conversion cost

Role & responsibility

BCMA benefit creation• Respond to HRD tire demandin N. America• Challenge in productivity &flexibility• Start by reinforcing activities for productivity
improvement – Improve capacity, reduce
workload and streamline within production
process⇒ Thoroughly reduce conversion costthrough productivity improvement

Tochigi plant (Japan)

Leads global

Role & responsibility

BCMA benefit creation• Supports production for Japan
REP market, premium PS export
tires, Japan OE (mainly foreastern Japan)• Supplies a wide variety of
products to Japan & global• High manufacturing power(High productivity & flexibility)

Primary benefit• Promote BCMA deployment→ Deployment rate – 2024: 30% → 2026: Approx. 80%• Reduce changeover man-hours through module sharing• Streamline production planning• Simplify production through BCMA
⇒ Thoroughly reduce conversion cost
• Realize efficient & timely product industrialization⇒ Streamline development & conversion costs• Streamline logistics cost by realizing close production
Secondary benefit

26/65

Create good tires

R&D and manufacturing transformation:
Promote creation of BCMA’s business cost reduction benefit◼ Amplify value through BCMA deployment × steady on-site productivity improvements × shift to Green & Smart – Reinforce earning power
Steady on-site
productivity
improvements

Pursue streamlined production based
on-site (Genbutsu-Genba)
STEP 1: Execution of each plant standard according
to the role & responsibility of each plant

Reduce direct material loss & loss
caused by equipment

STEP 2: Model of Standard
Most efficient conditions for equipment
operation & production process= Plant operation aligned with global standards

Maximize existing equipment capacity

Green & Smart◼
◼

Improve productivity fusing streamlined
production & smart technology

Shift to Green: Reduce energy Gentan-i (energy consumption per unit)
Shift to Smart: Improve productivity by promoting automation
Visualize & standardize “craftperson skills”
leveraging digital.
Reduce reliance on the skills of skilled technicians
through automation.
⇒ Skill-less / High efficiency

24MBP: Improve productivity (productivity per person)
Global target: Over 110 level* (2023 vs. 2026)
Productivity improvement target by area
BridgestoneWEST① First reinforce on-site (genba) power- Steady on-site productivity improvements② Shift to Green & Smart, create BCMA benefit (primary)

115 level

Americas1002023

EuropeOver 105 level

100
2024

2025

2026

2023

2024

2025

2026

Bridgestone Already high on-site (genba) power & productivity (especially in Japan)① Promote BCMA benefit creation (primary) and shift to Green & Smart
EAST② Further reinforce manufacturing genba power by linking BCMA & Smart

Asia

115 level

100
2023

Japan

Over 105 level
100

2024

2025

2026

2023

2024

2025

2026
*INDEX: 2023=100

27/65

Create good tires

Acceleration of value creation through the fusion of ENLITEN and BCMA
Provide customers with new value
Gain trust■ Introduction & expansion phase for products equipped■ New brand power linked with sustainable global
motorsports – “sustainable premium”■ 27MBP: Launch ENLITEN Generation 2

with ENLITEN (Generation 1)
ENLITEN equipment % – 2024: 20%⇒ 2025: 65% (PS & LT)■ Expand value creation■ Build technology to launch Generation 2 in 27MBP

2025 & 2026

True next stage

Reinforce
earning power

Reinforce quality

Expand earning power

2030
Become a resilient“excellent” Bridgestone

Business cost reduction
through BCMA introduction(Optimize cost + reduce environmental impact)■ Expansion phase for BCMA deployment
Introduction % – 2024: Approx. 25% ⇒ 2026: Approx. 50% (PS & LT)

1st stage of new premium
21MBP

28/65

24MBP

2nd stage of new premium
27MBP

24MBP Business shaping scenario: Further focus on value creation
Create good business quality “Passion for Excellence” (Management, Working & business quality improvement)• Respecting being on-site (Genbutsu-Genba), perform steady and agile PDCA while sticking to basics /Combination of continuous improvement and innovation / Pursuit of operational excellence• New & true glocal management structure focused on Genbutsu-Genba – ”Maximize effectiveness & efficiency”• Have a healthy business risk sensitivity• Tackle past negative legacies squarely / From volume-oriented to quality & value oriented – Next stage• Talent investment – “Enhance talent creativity”/ Culture change based on the “Bridgestone E8 Commitment”• Accelerate DX: Enhance use of generative AI⇒Improve productivity (Incl. expanding AI algorithm use in business)• Technology & innovation: Reinforce co-creation activities leveraging BIP⇒Reinforce creativity / Reinforce IP strategv

29/65

Improve management and working &business quality• Japan: Reinforce training at each level(management / executive / managerial / staff)• Global: Conduct training from the
management & executive level in each region→Expand to managerial & staff levels

Create good tires• Realize “ultimate customization” that sharpens edge in performances that not only meet the needs & wants of market/customers
but inspires them.
“ENLITEN” especially for “EV tires” – 24MBP: Expand Generation 1⇒ Build technology to launch Generation 2 in 27MBP• Start “BCMA” + shift to Green & Smart – R&D and manufacturing transformation / Support “ultimate customization”

Create good business

Create corporate value through balancing social value and customer value creation and gaining competitive advantage• Reduce business cost: BCMA, Green & Smart, steady on-site productivity improvements, global procurement, global SCM
logistics transformation• New premium tire business model: Channel, retread, building a sustainable premium brand• Evolve the sustainability business model: Toward the realization of carbon neutrality & circular economy and nature positive

Create new businesssowing good seeds
for the future

•
•
•
•

Truck & bus solutions: Establish mobility tech business in North America – Especially “Fleetcare” program
Mining solutions: New value creation through real x digital – New challenge
Aviation solutions: Strategic starting point to establish solutions business model including retread
Sowing new seeds: Evolve Air Free

Create good businessBusiness cost reduction across the value chain
BCMA

◼
◼
◼

Streamline development and supply chain by sharing modules
Primary effect: Reduce changeover of materials, parts, and equipment by product and streamline developmentby sharing of modules
Secondary effect: Benefit from evolution of R&D and manufacturing by BCMA deployment such as improved
capacity in production process and reduced workload at production sites

Shift to Green & Smart◼
◼

Shift to Green: Reduce energy Gentan-i (energy consumption per unit)
Shift to Smart: Improve productivity by promoting automation

Steady on-site productivity
improvements◼

Improve productivity by reducing direct material losses and equipment-induced losses benefiting from thoroughstreamlined production, also maximizing production capacity of existing equipment.

◼

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

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

Global procurement

Global SCM logistics
transformation◼

24MBP (2024-2026)
30/65

Over

100 B JPY level in total

Create good business

Global supply chain management◼ Promote building flexible and agile supply chain management which responds to premium focus and change
24MBP
Ratio oflocal production
for local sales (global)

PS

TB

90%
ENLITEN ratio (PS)

Ratio of premium
tire production(global)2023: 4% ⇒ 2026: 40%

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

80%
ENLITEN ratio (TB)

2023: 5％ ⇒ 2026: 35%

HRD ratio (PS)
2023: 45％ ⇒ 2026: 55%

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

Bridgestone EAST –Responds to growing market• Reinforce production capacity
for India PS premium tires⇒Strengthen position as a market leader

Place Japan as the “core of manufacturing”
Support the premium tire business globally
Bridgestone EAST

Main export products
Ratio of AC & OR tires
production in Japan* PS: Passenger car tires, TB: Truck & bus tires, OR: Off-the-Road tires, AC: Aircraft tires

31/65

80%

• High-difficulty specialties tires that require
technological & comprehensive capabilities: AC & OR tires• PS & TB premium tires

Create good business

Global supply chain management: Growing market – India PS premium tires◼ Strengthen PS premium tire business in India, a growing market⇒ Solidify market leader position based on increasing premium sales volume, improving sales mix & increasing market share◼ Execute investment in production capacity expansionof India PS premium tires (Pune plant)
India PS premium tire production (Indore + Pune plant )Production volume

To a scale of 10 M units in 2026

ENLITEN production ratio
12,000

HRD tires production ratio(17 inch and above)

50%

Production volume◼ Further strengthen India PS premium tire business
1996: Established plant for PS (Indore plant)
2013: Established new plant (Pune plant)⇒ Built a strong foundation based genba (on-site) and local
production for local sales--- Current: Gain market leader position＝ High market share & high profitability

45%

Approx. 130% vs. 2021

10,000

40%
35%

8,000

HRD
30%tires ratio
Approx.
25%
25%

6,000

20%

ENLITEN ratio

4,000

Approx. 20%
15%
10%

2,000

Focus on PS premium tires
Maintain & strengthen market leader position
Strengthen Dan-Totsu productPlan to launch new ENLITEN
product from 2024

Build channel
Enhance familychannel and
B-Select×

Reinforce
strategic
partners

5%
0

2021

2022
21MBP

2023

2024

2025

2026

0%

Reinforce brand power as “sustainable premium”
linked with sustainable global motorsports

24MBP*PS; Passenger car tires

32/65

Create good business

Global supply chain logistics transformation “B-Direct”◼ Promote business cost reduction and create social value and customer value through improving efficiency of global supply chain
Improve efficiency of supply chain(Reduce inventory & produce close
to where products are sold)◼ Link between improvement of

manufacturing flexibility and expansionof BCMA deployment:- Increase in producing tires close to place ofdemandDirect connection between customers
and plants with data ＆ products◼ SCM platform by DX:

Promote green & smart logistics◼ Green logistics- Direct connection with customers’

system and inventory data to realize
timely supply (direct delivery) from ourplant to customers- Introduce EV truck and solar power warehouse- CO2 emission reduction in efficient marinetransportation◼ Smart logistics- Promote introduction of automated- Efficient production planning linked to sales

equipment in warehouse⇒ Improvement of safety and efficiency of
warehouse operations

timing through improvement of
manufacturing flexibility→ Reduce inventory

Effect of cost efficiency throughout the supply chain to deliver to customers(inventory streamlining – warehouse – transport) -Cost to Serve-▲ Approx. 10% (2026 vs 2023)◼ Spread effects upstream and downstream in supply chain – Maximize effectiveness & efficiency throughout supply chain
Upstream

33/65

Global procurement: Strengthen global approach• Global strategic partners: Toward value co-creation(Win-Win)• Promote global procurement –Streamline supply
chain and benefit from its scale merit

Downstream

Improve accuracy of sales forecasting through sell-out management⇒Reflect to efficient production planning- Maximize sales opportunities based on demand prediction of wintertires by utilizing AI and streamline the process from production tologistics (Japan)

Create good business

Establish new & true premium tire business modelNorth America & Japan◼ Strengthen channels which create social value and customer value, being attentive to customers and markets:
Realize reinforcement of earning power

Enhance value
Create value
Improve sales mix

Channel power(Retail & service solutions network:
Increase customer experience value)

Equity stores in the U.S.

＋ Strategic partners
BtoC(for passenger car)

Equity stores Approx. 2,220 stores* in 2023
⇒ Approx. 2,240 stores in 2026
- Improve business quality
Develop a new store format that improves customer experiencevalue through real x digital- Real: Enhance sites- Digital: Promote DX of business systems

Develop new channel in collaboration with strategic partners

BtoB(For LT & TB)

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

Family channel + strategic partners

Differentiation

Equity stores and family channel in Japan＋ Strategic partners
B-select (for PS):
2023: Approx. 800* ⇒ 2026: To approx. 1,000- Be attentive to customers more than ever on-site
Reinforce channel through real x digital:- Restructure wholesale sites ⇒ Shift to retail- Launch E-Commerce “Bridgestone tire online store”

Strengthen channel in collaboration
with strategic partners

Enhance service network linked with “TPP”
solution and retread
B-Select (for TB):
Approx. 400* ⇒ 2026: To approx. 500- Enhance being attentive to customers on-siteand solve their problem -Enabler that supports growth of the premium tire business and solutions business* PS; Passenger car tires, LT: Light truck & bus tires, TB: Truck & bus tires

34/65

Base technology for
R&D and manufacturing

Ultimate customization*As of the end of 2023

New premium
Base technology for product design

Expandtire performance
spider chart

Enable cost reduction indevelopment
and production,and improve agility

FusionSharpen “edge”

Business cost
reduction(Reduce cost + environmental impact)

Simplification
Increase product power
ー Generate customer delight ーNewbrand power

Dan-Totsu R&D andmanufacturing power

Globalprocurement power

Global
SCM power

Co-creation withsustainability partners

Create good business: Establish new & true premium tire business model

Accelerate value creation by strengthening channel– Evolve & enhance U.S. retail equity stores “Real” × “Digital”◼ Reinforce providing premium customer experience value (UX) and contribution to sustainability– Take on the challenge of a new store format which evolves by real x digital⇒ Agilely develop cutting-edge technologies & services centered on digital and provide them to customers

Initial trial:

10

Open
stores by the end of 2024
Determine cutting-edge
technologies & services

Develop new store format

Expand only
technologies & services
with high accuracy

2025-2026
Plan toexpand stores

Second stage

Provide premium tires &services specialized for EV
EV maintenance & charging service linked with
ENLITEN, “New premium in EV era”
EV maintenance training for store technical staff

Premium customer experience: Improve UX

35/65

ExpandFirst stage

Enhance digital service
leveraging AI
Complete the entire customer experience fromprovide optimal products & services, order,
operation appointment, payment, to after service,seamlessly on the app

Execute PDCA

Gradually expand successful
initiatives to approx. 2,200 equity
stores and connect them toimprovement of quality

Final stage

Strengthen initiatives forsustainability
Solar power panels, advanced LED, andoptimized energy use (air conditioning, etc.)
Recycle end-of-life tires and oil

Contribution to sustainability

Create good business: Establish new & true premium tire business model

Accelerate value creation by strengthening channel - Reinforce retail sites in Japan “Real × Digital”
Provide high-quality consultation and service through understanding
customer problems based on Genbutsu-Genba (respect for being on-site)and offering the most optimal proposals

Bridgestone directly connects with customers and provides the bestpurchase and use experience through real x digital
Enhance B-select sites (for PS)

Restructure channel

2023: Approx. 800 sites*

24MBP focused initiatives*As of the end of 2023

Develop Bridgestonetire online store
Service launched in August 2023

Enhance B-select sites

Reinforce retread

2023: Approx. 400 sites*

Reinforce investment in
retread production capacity
Strengthen product power(multiple retread)*As of the end of 2023

2026: Approx. 500 sites

BtoC

E-CommerceStrengthen service network linked with “TPP” solution & retread

Restructure wholesales sites

2026: Approx 1,000 sites

Shift to retail(for PS)

Enhance talent creativity
Customer service andtechnical skills grand prix
AI utilization & role play training

Enhance “TPP” solution

BtoB(for LT/TB)

Improve service & menu
Service launch in September 2022

“location information
management service”

Realize satisfaction of Dan-Totsu service# of TPP
contract vehicles

36/65

Improve profitability
Enhance talent creativity“Real-timemonitoring”

Service launch in July 2023

* PS; Passenger car tires, LT: Light truck & bus tires, TB: Truck & bus tires

Improve UX

2023: 66,000 vehicles,
2024: 80,000 vehicles,
2026: 110,000 vehicles

Develop “Solutions engineer”
Develop “Technical skills meister”(Technical skills GP)

Create good business: Establish new & true premium tire business model

Retail & service solutions network global expansion◼ “Real x Digital” retail & service solutions network: Expand scale while improving quality of business globally
Support growth of the premium tire business and the solutions business,through providing Dan-Totsu product & service solutions
Approx.
Network for PS
Americas

Approx.

9,300

19,400

1,800

sites

Network for TB

Europe, Middle East,
and Africa

Approx.

3,500

Americas

Approx.

Asia-PacificIndia and China

Japan

Approx.

Approx.

Approx.

4,700

Japan

4,700

Approx.

1,200

7,900

Approx.
sites

Europe, Middle East,
and Africa

Approx.

1,200

Asia-PacificIndia and China

Approx.

900

Network for OR

130

sites

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

Approx.

70 sites

Digital platform

Tire monitoring system

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

37/65

Digital fleet solutions

Retread tire production
management system

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

Enhance tire-centric solutions – Accelerate value creation centered on retread
24MBP - Next stage -* TB: Truck & bus tires, AC: Aircraft tires

Premium tire
Dan-Totsu productAC

To maintainhigh market share
Ensure safety and peace of mind
even under the harsh conditions
such as load, speed and heat/cold

RetreadSolutionsCo-creation with JAL

Multiple retread
Strengthen multiple retread
through big data analysis
Maximize productivity and economic valueof airlines’ operation

Wear prediction solutions
leveraging tire data & flight data
Be attentive and supportiveof customer problems
Respect for being on-site

Leverage know-how
Japan & N. America

TB“New premium in circular business era”

Achieve both economy &productivity of fleets andenvironmental performanceat a high dimension
Improve durability and wear resistance as
the base performances for retread

Strengthen
Enhance service
Europe & Asia

Restructure &rebuild

From wear prediction solution to
durability prediction solution⇒ Expand multiple retread

Link with the mobility solutions

Enable customers to use tires safer, longer, better and more efficiently:
Maximize the value of tires

Value creation by linking with sustainability business model: Carbon neutrality & Circular economy
38/65

Create good business

Building a sustainable premium brandToward 2030

Bridgestone brand

Next stage

Evolve from a premium brand toa sustainable premium brandEmpower each and all to achieve their best
and be essential to the future of mobility

With sustainable motorsports at the core,
foster trust and empathy by demonstrating our new challenge
and pursuit of excellence, and passion to race
Sustainable global motorsports
Concept tire model

39/65

Create good business: Building a sustainable premium brand

New corporate branding with sustainable global motorsports activities at the core
Global motorsports
activities

Demonstrated our challenge and pursuit of excellence, especially through participation in F1®
⇒Established Bridgestone as a global premium brand, building the foundation for today’s
premium tire business

Next stage
2023: 60th anniversary of Bridgestone Motorsport
2024- : Reinforce sustainable global motorsports activities

Foster trust and empathy by demonstrating
our new challenge and pursuit of excellence as well as passion

To a sustainable premium brand•

Earn empathy from diverse customers and society,including young people and women•

Earn empathy for sustainability initiatives

•

40/65

⇒ Being sustainable leads to being “premium”
Contribute to enhancing brand power in growing markets such as India & Asia
⇒ Alignment with regional business strategies“Passion to Turn the World”

Create good business: Building a sustainable premium brand

New corporate branding with sustainable global motorsports activities at the core
◼ Demonstrate our new challenge and pursuit of excellence through sustainable global
motorsports activities. Support the best performance of cars & vehicles through“ultimate customization” realized by ENLITEN.

2023: Supported 6 races in 6 European countries
2024: Expansion to 12 races in 10 countries
2025: Global expansion

2023 Event• Supplied tires equipped with ENLITEN®
technology with recycled & renewablematerial ratio of 63%• Specialized in low rolling resistance,
wear resistance and light weight:
Next event in 2025
Establish technology for ENLITEN Gen2
(Technology development in 2025:
Further expand conventional performance)

Next
stage

◼ Through the support, accelerate the adoptionof EVs and support the realization of a carbon
neutral mobility society◼ Connect to new ENLITEN products & technology
development◼ Support the development of motorsports culture
together with motorsports clubs in each region

Support the development of motorsports culture /Drive development of ENLITEN Gen 2 technology as a “mobile laboratory”

41/65

ABB FIA Formula E World Championship

Selected as sole tire supplier from the 2026-2027 season(Return to an FIA World Championship for the first time in a decade and a half)

24MBP Business shaping scenario: Further focus on value creation
Create good business quality “Passion for Excellence” (Management, Working & business quality improvement)• Respecting being on-site (Genbutsu-Genba), perform steady and agile PDCA while sticking to basics /Combination of continuous improvement and innovation / Pursuit of operational excellence• New & true glocal management structure focused on Genbutsu-Genba – ”Maximize effectiveness & efficiency”• Have a healthy business risk sensitivity• Tackle past negative legacies squarely / From volume-oriented to quality & value oriented – Next stage• Talent investment – “Enhance talent creativity”/ Culture change based on the “Bridgestone E8 Commitment”• Accelerate DX: Enhance use of generative AI⇒Improve productivity (Incl. expanding AI algorithm use in business)• Technology & innovation: Reinforce co-creation activities leveraging BIP⇒Reinforce creativity / Reinforce IP strategv

42/65

Improve management and working &business quality• Japan: Reinforce training at each level(management / executive / managerial / staff)• Global: Conduct training from the
management & executive level in each region→Expand to managerial & staff levels

Create good tires• Realize “ultimate customization” that sharpens edge in performances that not only meet the needs & wants of market/customers
but inspires them.
“ENLITEN” especially for “EV tires” – 24MBP: Expand Generation 1⇒ Build technology to launch Generation 2 in 27MBP• Start “BCMA” + shift to Green & Smart – R&D and manufacturing transformation / Support “ultimate customization”

Create good business

Create corporate value through balancing social value and customer value creation and gaining competitive advantage• Reduce business cost: BCMA, Green & Smart, steady on-site productivity improvements, global procurement, global SCM
logistics transformation• New premium tire business model: Channel, retread, building a sustainable premium brand• Evolve the sustainability business model: Toward the realization of carbon neutrality & circular economy and nature positive

Create new businesssowing good seeds
for the future

•
•
•
•

Truck & bus solutions: Establish mobility tech business in North America – Especially “Fleetcare” program
Mining solutions: New value creation through real x digital – New challenge
Aviation solutions: Strategic starting point to establish solutions business model including retread
Sowing new seeds: Evolve Air Free

Create new business sowing good seeds for the future: Solutions business Growth Business – Build Bridgestone’s mobility ecosystem

43/65

Create new business sowing good seeds for the future

Create social value and customer value◼ Based on the trust with customers and partners, amplify the value of Dan-Totsu products combining real & digital tosolve customers’ pain points and also contribute to sustainability◼ Reinforce tire wear prediction and aim to evolve to tire durability prediction solutions by building unique algorithms
leveraging the fusion of craftperson skills cultivated on-site (Genbutsu-Genba), extensive experience & knowledge of tires
from field engineering, etc. and “digital” such as AI
Commercial BtoB solutions
Establish mobility tech business in N. America – Especially “Fleetcare” program
Reinforce logistics solutions for the last mile – an area of demand growth
Truck & bus

Mining solutions

Aviation solutions

44/65

Premium Tire

Tire-centric solutions

Mobility Solutions

Expand solutions based on new premium “MASTERCORE”
Build value creation through real x digital – new challenge

Strategic starting point to establish solutions business model
including retread“Strategic business”
Establish
mobility tech businessCreate new business sowing good seeds for the future

Truck & bus: Build the mobility tech business in N. America - Overall picture of “Fleetcare” program◼

Strengthen coordination between premium tire & retread and mobility solutions: Enable customers to use tires safer, longer, better and more efficiently
Staying close to customers, provide solutions in a package tailored to their problems & contribute to sustainability

Premium tire

DigitalMobility solutions
Fleet management leveraging vehicle data

”New premium in circular business era”

Launch of products equippedwith ENLITEN (cumulative total)

8 products in 2023
⇒9 products in 2024
⇒Approx. 40 products in 2026

High-durability, wear resistance,and low rolling resistance

Create value end to end by staying close tocustomers and their problems

ENLITEN equipment %3% in 2023
⇒ Approx. 5% in 2024
⇒ Approx. 40% in 2026

• Monitor location information and propose efficient
operation & optimal routes• Visualize fuel consumption & CO2 emissions andpropose improvement• Manage driver and enhance safe-driving level(Linked with benefits for vehicle insurance)

RFID
Premium tire

RetreadTire data

Mobility data

370 K connected vehicles

RetreadApprox.

Real

1,200 sites*

For truck & bus*As of the end of 2023
in N. America
Service solutions network

Fleet
management

Customer base of premium tire & tire-centric solutions

45/65+ Collaboration with strategic partners(enhance scale and solutions)

Maintenanceservice

Service network for fleets

N. America as of the end of 2023:

Wear prediction→ Evolve to
durability prediction

Collaboration & sharing know-how

Europe as of the end of 2023 :840 K connected vehicles
Customer base of mobility solutions

Create new business sowing good seeds for the futureLight truck & bus: Reinforce solutions for last-mile logistics in N. America◼ Strengthen solutions offerings to solve customer pain points through real x digital based on Genbutsu-Genba (respect
for being on-site) and staying close to customers
Last-mile logistics
Customer’s pain points

Repeated STOP & GO in driving⇒ Frequent early tire wear

Frequent unexpected tire replacement & maintenance⇒ Decrease in vehicle utilizationand inefficient maintenance costs

Accelerate value creation being attentive to customers based on Genbutsu-Genba (respect for being on-site) mainly by fieldengineering & Improve customer value through one-stop service from premium tire to mobility solutions - Real x Digital Support non-stop operation of last-mile logistics & Maximize productivity of operations

Mileage-based payment program＝ Maximize customer’s
economic value

Optimal new product customized
to last-mile in N. America(plan to launch in the 2nd halfof 2024)• Improved wear resistance
performance• Case durability optimal for
retread

46/65

Mobility solutions

Retread

Dan-Totsu product

Begin reinforcement with new product launchingin 2024 in last-mile area where retread has beendifficult so far

Service network for fleets
Tire inspection & maintenance and prevent tire problem
Real* As of the endof 2023

DigitalFor truck & bus: Approx. 1,200 sites*
For passenger car: Approx. 2,200
equity stores*

Tire monitoring system+

Collaboration withstrategic partners
Enhance scale &solutions
Efficient fleet management
leveraging vehicle data

Create new business sowing good seeds for the future

Mining solutions: Real x Digital◼ With Dan-Totsu product Bridgestone MASTERCORE at the core, evolve mining solutions through “co-creation” based ontrust with customers: Take on challenge of expanding tire durability prediction solutions by building unique algorithms
leveraging AI
RealDigitalBridgestone iTrack
Logistics

Sales

MASTERCORE sales
Use /Maintenanceservice

Manufacturing

R&D

RepairUnique real x digital platform

Product
strategy

Reuse

Procurement

RecycleApprox.

90 mines• Tire temperature and pressure (real-time)• Vehicle location information and driving speed

Introduction of digital
tools incl. iTrack
Approx.

80 mines

Bridgestone’s
tire data & know-hows

Sharing fleet operation management
data with mining companies

Proposal for better use of tires
being attentive to customers on-site

Mining solutions contract

Enhance service network
Field engineering being attentive tocustomers on-site

130 sites
Of which provide
Approx.70sites

Network sites
for mining vehicles
on-site service

Approx.

(Bridgestone + OTRACO)

Approx.

80 mines*Mine and site numbers as of the end of 2023

24MBP
Prevent tire damage due to heat,a major pain point for mining
companies, by predicting tire
durability based on our uniquealgorithms built leveraging AI

Maximize productivity and economic value of mining operations,and also contribute to sustainability
47/65

Create new business sowing good seeds for the future

Aviation solutions: Strategic starting point to establish solutions business model including retread◼ Based on Dan-Totsu product power, combine multiple retread and tire wear & durability prediction technology
to amplify tire value & data value.
Maximize productivity & economic value of airline operations, and contribute to sustainability.

Reinforce multiple retread, contribute to sustainability across the value chain

2023 – Awarded the Sustainability Award by Airbus

Solution – “Use”

Dan-Totsu product – “Produce and sell”
Logistics

New tires

Use /Maintenanceservice

Manufacturing

Multiple retread

Ensure safety & peace of mind in harsh conditions throughresistance to load, speed, and heat/cold. Only industry-leading
manufacturers with high technology can develop such tires.

Sales

R&D
Unique real x digital platform

High market share

Reuse

AirlineFlight data

Data analysis

Planned tire
replacement

Wear & replacement
prediction

Efficient aircraft
maintenance planand tire replacement

New tire + multiple retread
Establish a circularbusiness model

Coordination with airlines’ system

2023

Improved the number of times an aircraft tirecan be retreaded through manufacturing DX① Manual manufacturing process by skilled workers② Conditions of tires fitted on aircraft / used tires

Tire management app

Product
strategy

Visualization through digital & analysis of big data
Implemented & standardized measures to improve manufacturing accuracy ofparts that have large impact on the number of times a tire can be retreaded

Improve working & business quality: Shared in the Global TQM Conference
as a good example of continuous improvement and innovation

48/65

Reuse

Procurement

Recycle24MBP
Based on the foundation for the solutions
business built up to 2023, expand solutions
deployment as a strategic starting point

Create new business sowing good seeds for the future

Adapt to new mobility – Build a mobility ecosystem

Avaylerure Capital Funds
POS platform provider

TyrataCarIQ&
Minority Investments
Tire sensor & data Joint Ventures
Autonomous driving related
management service
payment platform provider(Europe)provider (U.S.)

REACH

Peregrine.ai

Service provider for fleets(Notify dealer when avehicle breaks down)(U.S.)(U.S.)

Control Acqusitions Also continue exploring co-creation

Retail & service
solutions business

Mobility solutions business(Retread, repair)(Fleet management system)

Road safety
solutions provider(Europe)partners through venture capitals
N. America / Europe

TIER IV
Autonomous driving
technology development(Japan)WrenchYoshi

Chargylize

Bia

Mobile vehicle maintenanceservice provider (U.S.)

Mobile vehicle maintenanceservice provider (U.S.)

EV solutions provider(Europe)EV smart charging solutions
provider (Europe)

Solutions for EVs

49/65

May Mobility

KodiakAutonomous driving
technology development(U.S.)

Autonomous long-haultrucking technology
development (U.S.)

Solutions for automated vehicles

Part 2:
24MBP Business shaping scenario

Diversified products business – To the Next stage

50/65

Diversified products business: To the Next stage◼ Sharply focus on areas where Bridgestone’s core competencies can be leveraged
Enhancing premium & solutions: Make strategic growth investments for hydraulic hose, rubber track, and air spring (U.S.)
Hydraulic hose

Rubber track

Investment in premium hydraulic hose production- Increase production capacity at Rayong plant in Thailand
Expand hydraulic hose solutions & mobile van solutions network
Acquisition of U.S. mobile service provider Cline Hose & Hydraulics

Investment in premium rubber track production
Increase production capacity at Zarrow plantin Poland

Build a business model linking original equipment, replacement, and solutions
Premium original equipment / replacement: Reinforce premium strategy.
Strengthen structure to “produce & sell” Dan-Totsu products.

Retail & service solutions

Reinforce Dan-Totsu products

Centered around U.S. hydraulic hose sales & service
company HosePower, reinforce coordination with U.S.
mobile service provider “Cline” acquired this year

“Mastering forming hybrid polymer” that manage rubber material, etc.
“Mastering high pressure” that leverages tire technology⇒Develop premium hydraulic hoses that balance & achieve
high durability, flexibility, and lightweight

Reinforce production & supply structure
Increase production capacity at the Thailand plant

51/65

Leverage core competencies
fostered through tire development⇒Reinforce & expand
mobile van service solutions
FLEXTRAL
Premium hydraulic hosein N. America

Part 2:
24MBP Business shaping scenario

Exploratory business: Sowing new seeds

52/65

Create new business sowing good seeds for the future

Exploratory business: Sowing new seeds - With providing social value & sustainability at the core
◼ Guayule / Recycle – Enhance exploration of business model based on “co-creation” with external partners
21MBP – Steady progress in technology exploration⇒ 24MBP – Continue exploring business models. Take on challenge of small-scale commercialization phase.

Guayule - Diversification of natural rubber sources◼

Recycle - “Renew” tires to raw material

Demonstration
phase

U.S.: Promotion of co-creation & open innovation with the U.S.
Department of Energy, regional NGOs, and external partners◼ Recycle in Japan (Precise pyrolysis):
Promotion of co-creation with ENEOS under NEDO’s “Green Innovation Fund”*

2021-2022: Promotion of elemental technology development
2023: Introduced demonstration equipment in Kodaira, Tokyo and started recycle pyrolysis
tests of end-of-life tires⇒ Successful production of tire-derived oil and carbon residue

1940s: Start of development activities for tires deriving from guayule at Firestone
2012: Official re-launch of R&D activities
2022: Demonstrated race tires made from guayule-derived natural
rubber in the NTT INDYCAR® SERIES⇒ Expansion in 2023
[Promote co-creation with regional NGOs and external partners]
Technology development for improving natural rubber productivity with
Kirin Holdings (Japan), etc.
24MBP

Using the INDYCAR® SERIES, drive development towardcommercialization – “Mobile laboratory” concept

Demonstration
phase

24MBP

◼
◼

Promote technology verification.
Start study for the construction of a pilot demonstration plant.

Recycle in the U.S. (Carbon capture & gas fermentation technology):
Co-creation with LanzaTech
Recycling of mining tires:
2023 – Started out-sourced recycling in Chile using an external partner
24MBP

Expand to Peru in 2024

写真挿入予定＊*Obtained as a result of work commissioned by the New Energy and Industrial Technology Development Organization (NEDO) (JPNP21021)

53/65

Create new business sowing good seeds for the future

Exploratory business: Sowing new seeds - With providing social value & sustainability at the core
“Soften the future” – Bridgestone’s corporate venture “Softrobotics Ventures”

Small-scale commercialization phase◼ Aiming to “realize a future where human and robot co-exist”, promote the exploration of a businessmodel based on co-creation with a wide range of partners.
Diverse talent including young talent are
actively demonstrating theirentrepreneurial spirit
Interactive exhibitions to explore artificial
rubber muscles, the core technology
supporting soft-robotics

Valentine season limited event: ”Muscles where emotions dwell”@ “b8ta Tokyo Shibuya” discovery shop in Shibuya

Received
the international
design award

Bridgestone’s soft robot hand - TETOTE

54/65“iF DESIGN AWARD
2023”
GOLD AWARD

Display of “umaru”, the prototype for “robots thatimmerse your body and move your mind”@ International robot exhibition 2023

Create new business sowing good seeds for the future

Exploratory business: Sowing new seeds - With providing social value & sustainability at the core
Demonstration phase
24MBP: “Next-generation tire” that doesn’t need air-filling- Evolve from a concept to “AirFree” looking ahead to social implementation◼ “Air Free Concept®” development journey: Bridgestone’s unique technology development
based on the core competencies “mastering rubber” - resin material technology &“mastering road contact” and with sustainability at the core (from 2008)
2008 -

2013 -

1st generation:“safety & peace of mind”

2nd generation:
Improvement in“safety & peace of mind”
and “ride comfort”

Adapt to recycling
For 1-seater slow mobility
Vehicle weight: Approx. 200kg
Vehicle speed: Super slow

Replace the load-bearing
function of air through the
combination of hard materialand structure

For 1-seater mobility

Vehicle weight: Approx. 500kg
Vehicle speed: Slow

Hard material,
structure that doesn’t
distortAccelerate innovation based on co-creation

2023 -

3rd generation:
Respond to various needs for themobility of people & objects.
Take on the challenge of diversifying
the mobility to support:• Air free concept for bicycles• Air free concept for walking-area
BEVs (Use in the Tokyo 2020
Olympic & Paralympic Games)

Evolve to “provide social value”“Continue to support the mobilityof people & objects”

Vehicle weight: Approx. 1,000kg / Vehicle speed: Medium (Approx. 60km/h)• Expansion of digital application- Structural design supposing diverse usage
conditions, leveraging knowledge of tire technology• Material that can easily be recycled /Adapted to retread

Start of demonstration
experiment on public roads

For 2-4 seater ultra small EVs – Empowers mobility of local community

Technology evolution:
New material & structure• ”Bridgestone knows the roads of the world”“Co-creation”

2023: Started demonstration experiment for
ultra small EVs (co-creation with Idemitsu Kosan)- More advanced simulation technology

55/65

2024 -

Evolution to a strong and robust material anda structure that distorts appropriately
24MBP
Evolve from a concept to “AirFree”
looking ahead to social implementation

Part 2:
24MBP Business shaping scenario

Sustainability activities and value creation

56/65

Evolution of sustainability business model: Achievement in 21MBP◼ Reinforce the foundation for sustainability activities through building sustainability business model⇒ Move to the next stage, expand value created
Develop Water
stewardship plan

100% complete

Contribution to CO2 reduction
through products & solutions
business(Manuf. facilities under water stress area: 17 sites)

Installation ofsolar power panels Approx.

Carbonproductivity

3,400kt-CO2+29MW(2023 estimate)(Additional amount from 2021, approx. 41MW as of the end of 2023 in total)

2x(2021-2023 estimate )CO2 emission reduction（Scope1,2）2021-2023

Carbonneutrality-25.0%(2011→2021)

-28%

-53

Plan:

More than -30％%>
(vs. 2011)(2023 estimate)

Contribution to CO2 reduction（Scope3）

1.6x

Of Scope 1&2 emissions(2023 estimate)

Ratio of renewable energy (electricity)
2021-2023

16.3%
ISCC PLUS certification

Biodiversity &nature conservation area

1,544ha950

activities

57/65

International sustainability and carbon certification

Bridgestone’s directcontribution (2023)

Biodiversity &nature conservation activities

53,100participants(2021)+16 sites

Circulareconomy(2021: 0 sites → 2023: 16 sites)

48%UP(2023 estimate)

Resource
productivity(Total in 2023)

+8%

1.4x

Plan:
More than50％(2021-2023 estimate )Recycled & renewable material ratio
2021-2023

TB retread
ratio (REP)

64

% >

37%
(2021)

2%up

39

% >

(2023 estimate)

Plan:
More than37％

Toward sustainability value creation
Continue to provide social value and customer value
Achieve sustainability targets◼ Sustainability target in 24MBP: ”Produce and sell” “Use” “Renew”- Strengthen establishment of carbon neutral model and circular businessmodel across the value chain→ Realize sustainability value creation model toward 2030

Sustainability value creation linked with business shaping scenario◼ Premium tire business Core business : ”Produce and sell”
Creategood tire◼ Expand our “new premium” ENLITEN – our base technology for productdesign ”Ultimate customization”- Contribute to sustainability on top of improving various required performances of tires- Wear resistance performance and long-life (contribute to saving resources and reducing TRWP as well)- Amplify value to contribute to CO2 emission reduction by low rolling resistance (Scope3), etc

Carbon neutrality: Further focus on improvement of “quality
CO2 emission reduction (Scope1,2)Ratio of renewable energy (electricity)

2026

Reduce more than

2026

Target(vs. 2011)

Target50%

Contribution to
CO2 reduction (Scope3)

70% above

Contributes to reduce CO2 emissions by more than 3 times our own CO2emissions through light weight, low rolling resistance, solutions, etc (2026)

Circular economy: Strengthen the circular business model
Recycled &renewable material ratio
2026
Target39% above2026
Target◼ Reduce business cost & environmental impact
Value creation by BCMA & Promote shift to Green & Smart- Shift to Green: Promote introduction of renewable energy (electricity)(Business locations related to tire in Europe – 100% switched, promote introduction in other regions )Reduce energy gentan-i (energy consumption per unit)◼ Build sustainable premium brand: Foster co-creation and trust◼ Solutions business

TB retread ratio (REP)
Approx.

50%

Creategood businesstowards forest conservation

2026
Target12,000

Cumulative # ofsmallholders supported(from 2023)◼ Initiatives for reinforcing structure to cope with global management risk
and reducing future risk2026
% of suppliers setting SBT-equivalent CO2 reduction target (Scope3)

Risk monitoring related to human rights and continuous improvement

58/65

Target92%(CO2 basis)

Growth business: “Use”◼ Retail & service - New format of equity store in the U.S. (install solar power panel, improve energy
efficiency, etc)
◼ Commercial
BtoB solutions:

Nature positive: Reinforce support for smallholders of natural rubber# of smallholders
Supported

Foundation for value creation
toward sustainable growth stage- Offer efficient driving and operations that “enables customers to use tires safer,longer, better and more efficiently” through real x digital, while expanding TB
retread → Expansion contribution to Scope3 as well

◼ Exploratory business: Sowing new seeds
Create new business,sowing good seeds
Create goodbusiness quality

Lay foundation for the future growth
Enhance recycled & renewable material placing
social value and sustainability as the core - Guayule & recycle

Build strong business quality that supports sustainable growth
Portfolio management with ROIC 10% as the base

New & trueglocal portfolio
management

Toward sustainability value creation:
Accelerate sustainability from sustainable global motorsports◼ Promote sustainability at once across the value chain of motorsports tires, using sustainable global
motorsports as the starting pointRaw material & procurement
Enhance and diversify renewable resources

Production &Logistics“Excellence”
Sustainableglobalmotorsports

Use

Production & logistics
Lead to driving carbon neutrality

Development
RecycleRaw material &Procurement

Motorsports tires : Aim for more than 65% in ratio of recycled andrenewable material(Group’s target for ratio of recycled and renewable material in 2026:
More than 39%)

Motorsports tires : Use 100% renewable energy in our
motorsports tire production plants
Reduce CO2 by green transport (land & marine) (Scope3)
RecycleAccelerate realization of chemical recycle to“renew” tires to raw material

Evolve to agile and sustainable management with motorsports operation as the starting point
59/65

Toward sustainability value creation: To realize nature positive◼ Strengthen initiatives for sustained use of natural rubber, a renewable resource – Toward realize zero deforestation
Initiatives across throughout supply chain

Bridgestone’s initiatives as an “individual company”

Use sustainable
natural rubber+1,678ha
Sustainability co-creation– Collaboration with partners
Global procurement policy(2023 339 ha → 2026 2,018 ha, including afforestation by Guayule)

Improve productivity atcompany plantations

Afforestation indevastated areas
Genba 100-day Challenge

60/65

Number of cases of support
for small-scale farmers:

12,000 cases by 2026

“GPSNR,” Global platform forsustainable natural rubber
Multi stakeholder platform established under Bridgestone’s leadership
Promote development of global standard and framework and support
for small-scale farmers, etc.

Contribute torealization of zerodeforestation(Cumulative number of casesof support since 2023)“Guayule”
Diversification ofnatural rubber sources

Natural rubber
Support small-scale farmers

Toward sustainability value creation: Natural rubber business
Bridgestone group’s natural rubber plantation (3 sites)
Operate the natural rubber plantation business over 90 years (1926~)
Yield increase with the consistent planting of rubber trees
Achieved a profitable adjusted OP in 2021
Dimension: Approx. 480 square kilometers
Investment in planting of rubber trees including elite trees
which grow fast (2022~)
Dimension: Sumatra - Approx. 170 square kilometers
Kalimantan – Approx. 40 square kilometers
Liberia

SumatraCarbon neutrality• Maintain approx. 5.9M tons of CO2 fixation• Introduce fast-growing elite trees (improve productivity andincrease yield efficiency)• Increase in CO2 absorption and fixation through new planting on
a devastated land

Circular economy• Strengthen the supply of sustainable renewable material
supporting premium tire business and Dan-Totsu products

Nature positive• Prevent new deforestation through supporting small-scale farmers• Promote new afforestation and forestation through guayule• Collaboration with co-creation partners (Trial of agroforestry, etc.)

Kalimantan

Strengthen support for small-scale farmers of natural rubber

Promote reinforcement of Bridgestone’s natural rubber businessand establishment of sustainable natural rubber plantation acrossthe entire industry
Contribute to the realization of the sustainability business modelContinue social contribution activities
staying close to local community

Natural rubber plantation

61/65• Impart technology of productivity improvement developed for
Bridgestone's own plantation• Open its health care facility to local community• Provide land for school facility, etc.
(Above: Examples in Indonesia)

Sustainability - Response to global management risk TRWP

TRWP is the result of friction between the tire and the road surface which is essential to secure a safe comfortable journey with peace ofmind, consisting of a mixture of tread (tire surface) and road pavement materials (Tire and Road Wear Particles)◼ Understand TRWP: Promote research on the environmental impact of tires throughout their lifecycle in collaboration
with industry associations and academic institutions◼ Reduce TRWP:

Promote initiatives to reduce TRWP across the “produce and sell” & “use” value chain- Technology development: Continue to promote R&D investment in technologies for sustainable technology including material development to improve wear
resistance performance, etc- Product: Improve wear resistance performance on top of improvement of desired various performances for tires based on ENLITEN technology which aims for“ultimate customization” & Expand products which provide long-life – Focus on improving wear resistance performance for EV optimized tires, while
promoting initiatives with a view to Euro 7 (Next environmental regulation for motor vehicles) as well
- Solution: Propose optimal operations and driving route (shortest route, avoidance of traffic congestion, and reduction of Stop & Go, etc) for each customer
through real x digital and solutions that “enable customers to use tires safer, longer, better and more efficiently” according to customer’s situation of use, bybuilding the mobility tech business

Tire for PS
Launch Dan-Totsu productswith improved wear
resistance performance
New products
in 2023 and 2024
Wear resistance performance vs.
conventional Bridgestone’s product

6PPD
62/65

EV specialized tireU.S.

Launched in
May 2023+50％

EuropeTire for TB

STEER/DRIVE

Launched in
January 2024

Launched in
January 2023

+20％

STEER +40％

Antioxidant and antiozonant that is widely used in the tire industry:
Work to develop alternative product based on the basic premise that tire safety can be assured, while driving industry-wide initiatives

Toward sustainability value creation: Sustainability recognitions◼

Positive recognitions from numerous third-party organizations, such as being selected for the DJSI World for 2
consecutive years: Foster trust◼ Major sustainability indices (as of February 2024)

Climate Change: A
Water Security: A-

DJSI World(5th time, 2 consecutive years)
DJSI Asia Pacific (14 years in a row)

FTSE4Good Index Series(6 years in a row)

◼ Major sustainability indices in Japan (as of February 2024)

MSCI ESG rating「AAA」

ESG Corporate rating
Prime Status◼ Other sustainability indices (as of February 2024)

ESG indices adopted by GPIF
• FTSE Blossom Japan Index• FTSE Blossom Japan Sector Relative Index• MSCI Japan ESG Select Leaders Index• MSCI Japan Empowering Women Index
PRIDE index
Gold

Eco-first program
member(6 years in a row)(2011~)

63/65

EcoVadis Gold
(Bridgestone Europe)

Global CSR & ESG
Summit Awards(BSCAP: 1 Platinum& 1 Silver)Part 2:
24MBP Business shaping scenario

24MBP:
Value creation map for shaping business

64/65

Value creation process map - 24MBP

65/65

Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs and other statements that are not historical facts areforward-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 of similar 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 be included in othermaterials released to the public. These statements are based on management's assumptions 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, andtherefore you should not place undue reliance on them. You also should not rely on any obligation of Bridgestone to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Bridgestone disclaims any such obligation.

Copyright © Bridgestone Corporation

66/65