Financial Strategy
Financial Targets by Area & Business Portfolio
By focusing more on value creation in line with business shaping scenario based on new & true glocal portfolio management,
Bridgestone plans to achieve global revenue at the level of 4,800 B JPY (approximately 110% versus 2023), adjusted operating
profit at the level of 640 B JPY (approximately 130% versus 2023), and adjusted operating profit margin at the level of 13% (anincrease of approximately 2% versus 2023) by 2026, the final year of the 24MBP.
In terms of adjusted operating profit margin by business portfolio, we plan at the level of 16%, another higher level, byreinforcing earning power and creating “new premium” in our premium tire business as core business. As growth business,the solutions business will improve its portion in our adjusted operating profit by 4% in 2026 and build a foundation forgrowth in the 27MBP. For both solutions business and diversified products business, we plan an adjusted operating profit
margin to be at the level of 8%, which achieves our assumed WACC of 5.5%.

● Overview of Business Portfolio - Adjusted Operating Profit (Amount, Margin and Composition)

Return to a strong Bridgestone capable of adapting to change

Remaining issues& new issues

True next stage

2026 —Final year of 24MBP—

2023 —Final year of 21MBP—
Core business

Growth business* Include revenue of retail

Premium tire business Growth business tires in solutions business
Adj. operating
profitAdj. operating
profit margin

400.7
13.7%

Adj. operating profit
portion

82%

B JPY

Adj. operating profit
portion15%

Adj. operating
profitAdj. operating
profit margin

72.2
5.5%

B JPY

480.6 B JPY

13.2

B JPY

Adj. operating
profit margin

Adj. operating
profitAdj. operating
profit margin(Adj. operation profit portion)+4%

Adj. operating
profit margin

11.1%

Adj. operating
profitGrowth business

Solutions business tires in solutions business

Build foundation for growthof the solutions business

Adj. operating profit

Diversified products businessCore businessPremium tire business

Adj. operating profit
portion

4.4 %3%* Calculated from a simple global total of revenues by business segment

Premium Tire Business Core Business
Financial Targets by Area520
16 %OverB JPY
levellevel

Adj. operating profit
portion77%* Include revenue of retailAdj. operating profit
portion19%

Adj. operating
profitAdj. operating
profit margin

1208%

B JPY
levellevel

Adj. operating
profit640 B JPY level
Adj. operating
profit margin

13% level

Adj. operating profit
portionDiversified products business
Adj. operating
profit Over

25B JPY
level

Adj. operating
profit margin

8 % level

4%

Achieve Bridgestone’s assumed WACC: 5.5% = AOP over 8%

Specialties, including tires for mining and aviation, will
support earning power with high profit margins at thelevel of 20%.

In North America and Japan REP (replacement) business,on our assumed WACC of 5.5% = ROIC of 5.5% ≈ adjusted

earning power. Particularly in North America, we are driving

operating profit margin of 8%. For the European business,the improvement of business quality through expanding

we will improve the adjusted operating profit margin to thesales and increasing market share in the premium segmentlevel of 8%, while for China business, we withdraw the TB

by strengthening family channel, reinforcing collaborationbusiness and focus on PS premium as growth segment,with strategic partners and developing new channel. In

aiming to improve the adjusted operating profit margin.

Japan REP, we are also reinforcing our focus on premium

82

The European and China business are to be rebuilt basedthat are mature areas, we steadily promote to reinforce

Growth area, the second home markets representing as

through channel rebuilding, including the shift to retail sites

India and Indonesia, will capture high demand growth andfrom wholesale structure.

expand its scale while improving profitability.

● New & True Glocal Portfolio Management Scenario

Core business - Targets Premium Tire Business        Adj. operatingprofit margin

2023 Results
2026 TargetSpecialties

North AmericaSpecialties
North America

India

India

Japan China
REP

Japan REP

Indonesia

Indonesia

EuropeBridgestone’s assumed WACC: 5.5% ≈Adj. operating profit margin: 8.0%

China
EuropeINDEX:
2023 = 100

110120130140 (%)

Revenue growth rate (2023→2026）*Revenue and Adj. operating profit for Specialties, Japan REP, and Europe include solutions.

Specialties, Japan REP and Europe include solutions in their revenue and adjusted operational profit

2nd Stage of Rebuilding

foundation. We have already begun business rebuilding
through operational improvement, and will work on

To achieve more than 10% ROIC on a global basis, we havebusiness rebuilding using PDCA cycle.

begun the second stage of rebuilding in our Europe

Also, TB business aims to become profitable in 2025

business, China business, and Thailand business.

through business rebuilding. As for the OE business, we

As for Europe, where historically challenges have been

are strengthening our focus on premium vehicle model/

deep-rooted, we will change the shape of the Europe

OEMs and prestige OEMs. In solutions business, webusiness, setting the entire Europe business as a “businessdiscontinued consumer solutions last year and concentrate

unit under focused management”. We executed rebuilding

on commercial BtoB solutions including Fleetcare program

such as the closure of Bethune plant in 2021, and willwith limited areas and customers. Retread is also planned

execute rebuilding of retail, TB and retread in the 24MBP.

to become profitable in 2026 due to the improvement ofWe are also strengthening our structure to further focus on

profitability by rebuilding business that includes to streamline

premium across the entire value chain, from production, tothe production structure with limited areas and customers.

sales and solutions. Regarding production, we will strive to

In addition, we will improve the organizational structure

improve fixed costs more efficiently in 3 TB tire plants, by

to execute these measures.

adjusting its production capability to sales conditions.

China business withdrew from TB business and focus on

We will further reduce deficit & unprofitable sizes and will

PS premium tire business. Along with two production

launch Dan-Totsu products. By doing so, sales will be further

plants for PS tires, we strengthen the structure tofocused on premium for both PS and TB. The sales structurecomplete “Produce and Sell” domestically in China,

for wholesales will be simplified and streamlined throughresponding to geopolitical risks.

organizational integration, etc. to reduce fixed costs. RetailAs for Thailand, we ended production at our Rangsit

business will become profitable at the latest in 2026,

plant in 2023 and consolidated our production sites.

through fundamentally reviewing the retail business withWe promote business rebuilding to focus on premium

support from the U.S. team, where it has a strong businesssegment in order to return to Dan-Totsu No. 1 position.

Bridgestone 3.0 Journey 2024 Integrated Report83

Financial Strategy

Solutions Business Growth Business
Financial Targets by Area

which has already secured a high profit margin, we are

In solutions business, we are working to strengthen retail &of our solutions business, mainly in retail & service andservice and retread, as well as mining and aviation

retread, where invested in production reinforcement insolutions and mobility solutions (mainly in North America),

the 21MBP.

continuing to reinforce earning power.
In Japan also, we are steadily improving the profitability

which will become the mobility tech business, as a

While in Europe, we are rebuilding retail & service andstrategic business.

retread, that are currently deficit, to become profitable.

In North America, where our retail and retread businessIn mining and aviation (specialties) solutions, we plan aalready have a strong foundation, we continue to reinforcesteady growth in both scale and profitability by combining

our earning power and will achieve growth. Retail & Service,strong real capabilities such as Dan-Totsu product andan enabler that supports premium tire business, willon-site technical services with digital power.

improve its adjusted operating profit margin by improving

Moreover, we are continuously strengthening mobility

business quality in stand alone business unit, and will

solutions of Webfleet and Azuga, and establishing mobility

contribute to the entire business in North America bytech business through expanding its scale, mainly inexpanding its functions as an enabler. In retread businessNorth America.

●New & True Glocal Portfolio Management Scenario

Solutions Business          —Target —Growth business

Adj. operating
profit margin

2023 Results
2026 Target

North America
RetreadSpecialties
OR/AC

North America

Specialties
Azuga
WFS
North America
RetailJapan RetailJapan Solutions

Europe Webfleet
Japan Solutions(incl. retread)North America
RetailJapan
RetailEurope
RetailNorth America Azuga

Bridgestone’s assumed WACC: 5.5% ≈Adj. operating profit margin: 8.0%
EuropeRetread

Europe RetailEuropeRetread

INDEX:
2023 = 100120

140160

Revenue growth rate (2023→2026)

84

180

240 (%)