New & True Glocal and Portfolio Management
Bridgestone developed our new & true glocal and portfolio

business. For the core business, reinforcing earning

management to achieve the global management indicators.

power and creation of “new premium” are promoted to

To aim for more than 10% of ROIC globally, the basic axes aregain a solid position in premium segment. In terms of“to build a strong Bridgestone and strong business quality”,

the growth business, we focus on solutions that amplify“to improve management quality, working & businessvalue of premium tires and build the foundation to enterquality”, and “to have no business with adjusted operating

growth and expansion stage in the next 27MBP. Regarding

profit margin below 8% ≈ Bridgestone’s assumed WACC

the exploratory business, we will step up from exploring

below 5.5% and ROIC below 5.5% (excl. exploratory

technologies to business model, and will also take on thebusiness)”.

challenge of sowing new seeds, providing social value andsustainability as the core.

We promote portfolio management in line with eachIn the diversified products business, we sharply focus oncharacteristic of our four businesses: premium tirebusiness as core business, solutions business as growthareas where our core competencies can be leveraged andbusiness, exploratory business, and diversified products

aim for steady growth.

24MBP: New& True
Glocalglocal
Portfolioportfolio
Management
Scenario Overview— Target overview — target —24MBP:
New& true
management
scenario

Aim for more than 10%of ROIC globally

To build a strong Bridgestone and strong business quality
Improve management, working & business quality, and business administration levels — Improve cash conversion cycle
Adj. operating profit margin 8% ≒ Bridgestone’s assumed WACC 5.5% ⇒ No business with ROIC below 5.5% (excl. exploratory business)

Return to a strong Bridgestone capable of adapting to change Remaining issues & new issues Build strong Bridgestone & strong business quality

21MBP

Stage of sustainable growth

24MBP: Ensure more than 10% of ROIC

2030
Become a resilient“excellent”
Bridgestone

27MBP

Strengthen the premium tire business— Gain solid position in premium segment —Premium tire businessCore business“New premium”
2nd stage

Rebuild earning powerReinforce earning power

Lay foundation forpremium enhancement

Expand premium tires & create “new premium”

Focus on solutions that amplify value of premium tires— Strengthen linkage between premium tires and solution —Solutions business
Growth business

Lay foundation for evolution
with solutions business“Determine““Sowing new seeds”— Providing social value and sustainability as the core —Exploratory business

Diversified products
business

Explore technologies

Stage togrow and expand

Focus on retail & service and commercial BtoB solutions— Mobility tech business = Build as strategic business —Explore to commercialize

Explore business models
Demonstration / small-scale commercialization phase(small & medium scale)“Sharply focus on areas where Bridgestone’s corecompetencies can be leveraged”
Rebuilding & steady growth

New & true glocal and portfolio management isbased on the “glocal” management that we havebeen promoting since 2020. Based on our global

Next stage

Steady growth“Glocal*” Management Concept* Glocal = Global × Local

Global strategy

Region / SBU / Area

Global Optimization

strategy, we deploy local strategies adapted tothe characteristics of each region and market suchas mobility maturity and industry structure, while
ensuring total optimization across the value chain.

StrongGlobal strategic view

Maturity of mobility

area

GlocalBridgestone position,
profit structureManagement

Weak

Global consistencyarea

Industry, market,
competition structure

Entire Value-Chain
Optimization
Productstrategy

R&D

Procurement

Production
Production
planning

Logistics

Sales

Customer
use

ReduceReuse
RecycleBridgestone 3.0 Journey 2024 Integrated Report31Mid Term Business Plan (2024-2026)—24MBP
New & True Glocal and Portfolio Management

New & True “Glocal” Management Structure:Management by 47 Areas Focusing on Value
Creation Based on Genbutsu-Genba (Respectfor Being On-site)

Furthermore, we divided the SBUs into 47 areas withclarified roles and responsibilities as business
management unit. The 47 areas are the structure toemphasize value creation based on “Genbutsu-Genba,”
while focusing on execution and delivering results. By

Bridgestone is driving to build a new & true “glocal”

thoroughly reinforcing signal monitoring, visualizing

management structure to execute new & true glocal

issues, and conducting the PDCA cycle, which are

portfolio management.

remaining issues from the 21MBP, we are building theFirst, by dividing Bridgestone’s business into two major

structure that enables us to respond to change promptly

regions, Bridgestone EAST and Bridgestone WEST, webased on Genbutsu-Genba (on-site).

promote our management based on the characteristics of

The Global BRIDGE INTEGRATION plays a global cross-each region, while streamlining support functions in eachfunctional role and effectively support Genba (on-site),region. Under the two regions, six SBUs (Strategic Businesscoordinating with region cross-functional roles as well asUnits) are placed with streamlining functions from theensuring to balance consistency of regional strategy withcomplex SBU structure.

global strategy.

Management Structure (As of January 1, 2024)

Global CEO

2 regions

BRIDGESTONE EAST

BRIDGESTONE WEST

JAPANsegment

6 SBUs

G-MICA

BSDP

BSAPICBSAM

BSEMEA

Global mining
tire solutions &Aviation
tire solutions

Diversified
product &Exploratory

Asia Pacific,
India, China

Americas

Europe,Middle East,
Africa“Based on-site”
47 areas

16 areas

31 areas

Region crossfunctional role

EAST region cross-functional

WEST region cross-functional

EAST BRIDGE INTEGRATIONWEST BRIDGE INTEGRATION

Global crossfunctional role

32

BSJP
Japan tire

Global cross-functional
Global BRIDGE INTEGRATION

Management by Business Portfolio x Area

Regarding the growth business in the middle row, retailand retread in North America and Japan are enhanced

We have clarified the strategic direction by each businesslinked with the premium tire business. In addition, weand area as in the below chart based on the maturity ofreinforce mining and aviation solutions, as well as Webfleet

motorization, growth potential and profitability, andbusiness in Europe and Azuga business in North America

Bridgestone’s position in the market.

that provide mobility solutions, in order to build theOn the horizontal axis, each area is mapped from mature

mobility tech business, which is our strategic business.

markets to growing markets with the perspectives ofOn the other hand, in Latin America including Argentina,

motorization, based on the number of PS (passenger car

where the business environment is volatile, we closelytires) / LT (light truck and bus tires) owned per 1,000 people

monitor the situation and respond with high sensitivity.

and capital GDP. While the vertical axis is organized based

Business rebuilding is promoted for the entire European

on business portfolio.

business, China TB from which we have decided toFirst, for the core business at the top of the chart, wewithdraw, and Thailand where we promote businessstrengthen it as a sustainable premium tire business,rebuilding.

focusing on mature markets such as North America andThe diversified products business continue to sharply

Japan and specialties tires for mining and aviation.

focus on areas where our core competencies canFurthermore, as for the growing markets of the corebe leveraged.

business such as India and Indonesia in the upper left
corner, we expand the premium tire business from theSee pages 82–84 for details on financial targets by eachvolume perspective.

business portfolio/area.

24MBP:
New&&True
true
glocalportfolio
management
scenario Managementby business
24MBP: New
GlocalPortfolio
Management
Scenario—Management
by Business Portfolio
x Area portfolio x area
PS: Passenger car tires; TB: Truck & bus tires

Expand the premium tire businessin growing markets

Reinforce the sustainableglobal premium tire businessCore businessPremium tirebusiness

India
Other Southeast Asia

Indonesia
S. Africa

North America
Premium TireMiddle EastJapan
Premium Tire

China (PS)Specialities Tires

For Mining &Construction Vehicle
For Aircraft

Australia & NZ

Expand retail & solutions business mainly in North America and JapanJapan
RetailGrowth business
Solutionsbusiness

EuropeWebfleetJapan Solutions(incl. retread)North America
Azuga

North America
RetailNorth America
RetreadMining/Aviation Solutions
Mobility Tech

Strategic business

L. America

Volatile(Especially Argentina)

Rebuilding

ThailandChina (TB)

Europe Premium Tire (especially TB) & Retail / Retread

Sharply focus on areas where Bridgestone’s corecompetencies can be leveraged

Diversified
products

U.S. Airspring

Growth market

Motorization(Number of passenger car or light truck owned per 1,000 people x Capita GDP*)

Japan Diversified
ProductsSports & cycle

Mature market* Number of passenger cars or light trucks owned per 1,000 people – Economist Intelligence Unit /Capita GDP – Made by Bridgestone based on S&P Global data (as of the end of January 2024)

Bridgestone 3.0 Journey 2024 Integrated Report33