Summary of Financial Results for 2023

–Including review of Mid Term Business Plan (2021-2023)

Business Plan for 2024

– 1st year of Mid Term Business Plan (2024-2026)

February 16, 2024

Member of the Board
Global CEO and Representative Executive Officer
Shu Ishibashi

Summary of Financial Results for 2023

– Including review of Mid Term Business Plan (2021-2023)

Business Plan for 2024

– 1st year of Mid Term Business Plan (2024-2026)

2/50

Summary of Financial Results for 2023

– Including review of Mid Term Business Plan (2021-2023)

3/50

Final year of Mid Term Business Plan (2021-2023) – Review of 2023
Positioningof 2023

1. Last year of Mid Term Business Plan (2021-2023) – 21MBP: Return to a “strong” Bridgestone capable of adapting to change
2. Foundation for Mid Term Business Plan (2021-2023) – 24MBP: Complete laying the foundation for premium enhancement
and evolution with solutions business Not yet returned to a “strong” Bridgestone capable of adapting to change*PS: Passenger car tires, TB: Truck & bus tires,
REP: Tires for replacement, HRD: High rim diameter< Changes > 2023: Decline & recovery delay of tire demand mainly in N. America & Europe (especially for TB*), prolonged downturn in economy &demand in Europe ⇒ Inability to adapt• Deterioration of the business environment exposed challenges in business quality such as accuracy in demand/sales forecast mainly in N. America & Europe,and weak business & channel foundations for the European business• Issue also in monitoring signals & business risk sensitivity in dealing with the Argentina market, where political changes led to a sharp devaluation of currency• Penetration of the Bridgestone DNA ⇒ Re-enhance. Quality of management varies among regions and functions, need to improve globally
2024: Improve & reinforce business quality. Pursue operational excellence with “improving management quality and working & business quality” as top priority:
Restructure & rebuild the entire European business (especially for retail, TB, and retread), premium focus in China, Thailand business andJapan REP* business (Focus on solving remaining issues of 21MBP within 2024)

 Laying foundation for premium enhancement ⇒Completed: reinforced structure to “produce & sell” premium tires- Executed strategic growth investments even in the challenging business environment, and promoted premium tire reinforcement globally- In the U.S., despite a difficult performance in 2023, the foundation for premium enhancement of PS HRD* tires & TB retread was solid Linkage with solutions business ⇒Partially achieved
21MBP - With setback in solutions for consumer tires, clarified “what to do” and ”what not to do”
Decision to promote mainly retail & service as well as commercial BtoB solutions in 24MBP.
Tackle past negative legacies squarely
without delay
4/50

Focus on execution and deliveringresults for immediate issues

Lay foundation for future growthSummary of financial results for fiscal 2023 (vs. 21MBP targets) Not yet returned to a “strong” Bridgestone capable of adapting to change:
Landed below full-year forecast announced Feb. 2023

Improve sensitivity to monitor signals & agilely adapt to changes, and quality & speed of PDCA cycles

Currency
exchange

121 JPY
134 JPY

USD
EUR

107 JPY
122 JPY

Adj. Operating5,500
517.2
Profit Margin [%]
4,500
3,500

12.1%
9.8%
343.1

2,500

2015

110 JPY
130 JPY

132 JPY
138 JPY

141 JPY 123 JPY
152 JPY 133 JPY

21MBP

13.6%

7,500
Adj. Operating
Profit [B JPY] 6,500

1,500

109 JPY
122 JPY

2019

7.7%

394.3

11.7%
482.6

14.0%

11.1%

480.6

Revenue

12.3%

13.0%

B JPY

2022

2023

level

480.6 B JPY

10.0%
9.0%

Adj. Operating
Profit Margin

13% level

11.1%

8.0%

ROIC

10% level

8.7%

ROE

12% level

10.4%

Profit fromcontinuing operations

290 B JPYlevel

326.9 B JPY

Continuous
improvement

200 JPY (plan)

6.0%

Announced
Feb. 2023

3,507.2

2,695.2

3,246.1

4,110.1

4,313.8 4,150.0

Profit from continuing
operations [B JPY]

284.3

240.1

-19.8

307.9

305.4

326.9 340.0•

Profit margin fromcontinuing operations [%]

7.5%

6.8%

-0.7%

9.5%

7.4%

7.6% 8.2%•

Dividend per share
[JPY]

130

160

110

170

175

200 (plan) 200

ROIC
ROE

5/50

14.7％
13.3％

7.4%
10.0%

5.1%
-0.9%

9.0%
12.9%

9.4%
10.9%

8.7% 10.5%
10.4% 11.4%

4,313.8 B JPY

level

450 B JPY

3,790.3

Revenue [B JPY]

3,300 B JPY

Adj. Operating
Profit7.0%

2021

2023 Results

12.0%

510.0 11.0%

207.4
2020

21MBP (announced Feb. 2021)
2023

Dividend per share

Including tailwind from currency exchange, achieved
revenue, adj. operating profit and net profit amount
Adj. operating profit margin and ROIC were below targets.
Unable to achieve improvement in business quality.
⇒Remaining issue for 2024

Summary of financial results for fiscal 2023

(Revenue, Adj. Operating Profit, ROIC, Profit, Shareholder returns)
Currency
exchange

121 JPY
134 JPY

USD
EUR

Adj. Operating
Profit[B JPY]
7,500
Adj. Operating
6,500
Profit Margin
[%]
5,500

109 JPY
122 JPY

107 JPY
122 JPY

13.6%
12.1%
517.2

9.8%
343.1

3,500

132 JPY
138 JPY

141 JPY 123 JPY
152 JPY 133 JPY

21MBP

4,500

2,500
1,500

110 JPY
130 JPY

7.7%

394.3

11.7%
482.6

14.0%

11.1%

480.6

12.3%13.0%
12.0%

 Revenue (vs. prior year):• Sales volume decline due to significant demand decline for TB REP in N.
America & Europe being a negative factor vs. prior year, secured increased
revenue vs. prior year by achieving: sales mix improvement through sales
expansion of premium PS REP (HRD tires 18 inch & above, regional
premium tire brands, etc.), sales expansion of ultra-large/large OR* tires,and with tailwind from currency exchange• Revenue portion of solutions business:
Achieved 21MBP target of 20% (excl. sales revenue of retail tires)

510.011.0%  Adj. Operating Profit (vs. prior year):
10.0%
9.0%

B JPY

8.0%

207.4

7.0%

2023

*OR: Off-the-road tires

6.0%
Announced
Feb. 2023• Covered negative impacts on production cost from raw material prices andinflation (energy costs, labor costs, etc.) as well as conversion cost increase fromdeterioration in capacity utilization for N. America, Europe and for Asian &Japanese exports reflecting sales volume decline in N. America & Europe through:improvement in price & sales mix, thorough expense management, and on-site
productivity improvement in production. However, largely impacted by
Argentina’s hyperinflationary accounting (approx. 10 B JPY profit decrease),decreased profit vs. prior year including currency exchange impact• Excluding Argentina’s hyperinflationary accounting impact, secured increased
profit vs. prior year Adj. Operating Profit Margin (vs. prior year):
2023: 11.1% ⇒ Fell short of prior year by (0.6)pp

2015

2019

2020

2021

2022

Revenue [B JPY]

3,790.3

3,507.2

2,695.2

3,246.1

4,110.1

ROIC

14.7％

7.4%

5.1%

9.0%

9.4%

8.7%

10.5%

ROE

13.3％

10.0%

-0.9%

12.9%

10.9%

10.4%

11.4%

284.3

240.1

-19.8

307.9

305.4

326.9

340.0

7.5%

6.8%

-0.7%

9.5%

7.4%

7.6%

8.2%

 ROIC (vs. prior year):
2023: 8.7％ - (0.7)pp vs. prior year reflecting decreased profit.
Fell short of 10% target by (1.3)pp

130

160

110

170

175

200 (plan)200 Dividend plan: 200 JPY per share (plan), continued improvement

Profit fromcontinuing operations[B JPY]
Profit margin
from continuing
operations [%]Dividend per share
[JPY]

6/50

4,313.8 4,150.0

 Profit from continuing operations:2023: 107% vs. prior year, +21.5 B JPY

2023 Demand & sales volume results: Truck & bus tires (replacement)
TB demand (REP)

TB sales volume (REP)

2023 full year vs. prior year

2023 full year vs. prior year

Sell-out

Sell-inN. America – Recovery trend from 3Q but remained slow for the year
Europe – Prolonged economic downturn, sell-out did not recover for the year
N. America – Distribution inventory was adjusted for fleets and in major
dealers but remained slightly higher than other years in somedealers at the end of 2023. Expect normalization in 1Q 2024.
Reflecting sell-out and some dealer inventory adjustments,
sell-in demand was approx. 80% of prior year for the year,
slightly below forecasts announced in Nov. 2023.
Europe – Distribution Inventory levels remained lower than normal year
standards with dealers tending to reduce inventory reflecting
the economic downturn. Sell-in demand was also near 80%
of prior year for the year, slightly below forecasts announced
in Nov. 2023.

2023 full year sell-in demand (vs. prior year)
INDEX: 2022=100
Nov. 2023
announcement

N. America – Reflecting demand, sales volume declined vs. prior year.
However, based on a strong business foundation including DanTotsu products, customer-base, solutions network, and retread,increased market share in the premium segment.

Europe – In the severe business environment, 1) we could not balance
price & quantity, 2) weak channel foundations were exposed, and
3) less customer base became a challenge. Sales dropped more thandemand decline to approx. 70% of prior year.
Significant decline in market share.
Global – 85% of prior year. Ensured a focus on premium rather
than pursuing overall sales volume, such as the reduction of
unprofitable business2023 full year sales results (vs. prior year)
INDEX: 2022=100
N. America

Results

N. America

85-89

82

EuropeEurope80-84

79

Global* Demand: Bridgestone estimate *Demand for N. America: USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) based

7/50

Results

86
70
85

2023 Demand & sales volume results: Passenger car tires (replacement)
PS demand (REP)

PS sales volume (REP)

2023 full year vs. prior year

2023 full year vs. prior year

Sell-out

N. America – Gradual recovery from 2Q, continuing in 2H
Europe – Recovery trend from 3Q, but with a slow start for winter tiresin 4Q, did not recover for the full year
N. America – Completion of distribution inventory adjustments byend of 1H. Reflecting sell-out, slight decline vs. prioryear for the year.

Sell-inEurope – Distribution inventory adjustment progressed but
impacted by the slow start of winter tire sell-out, levels
remain slightly higher than other years at the end of 2023.
/ Normalization expected to be complete by 1Q 2024.
Reflecting sell-out & distribution inventory situation,
demand was approx. 90% of prior year for the year.

2023 full year sell-in demand (vs. prior year)
INDEX: 2022=100

N. America – In addition to slight decline in sell-in demand, ensured a focus onpremium, resulting in slight decline vs. prior year for PS total sales volume.
Reflecting sales, slight loss of market share for PS total.
Europe – 1) Decline in sell-in demand, 2) Exposure of weak channel foundations in
the challenging business environment, 3) Focus on premium, not volume
for total PS sales.
Reflecting 1)-3), sales volume for PS total was 85% of prior year andmarket share declined.
Global – Also in Asia & Pacific, China and Japan, by reducing sales of low-margin /low rim diameter tires and ensuring a focus on premium,
PS total sales volume was 90% of prior year.

2023 full year sales results (vs. prior year)
INDEX: 2022=100

Results

N. America

100

99

EuropeEurope90-94

91

Global* Demand: Bridgestone estimate *Demand for N. America: USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) based

8/50

N. America

Nov. 2023
announcement

Results95
85
90

2023 Demand & sales volume results: Passenger car high rim diameter tires (replacement)
PS high rim diameter (18 inch & above) demand (REP)

PS high rim diameter (18 inch & above) sales volume (REP)

2023 full year vs. prior year

2023 full year vs. prior year

Sell-out

N. America – Maintained resilient demand reflecting the shift to high rim
vehicles & EVs. Solid sell-out throughout the year, exceeding
prior year.
Europe – Maintained relatively resilient demand despite impacts from theeconomic downturnSell-inN. America – Reflecting sell-out, growth vs. prior year
Europe – Slight improvement vs. prior year

2023 full year sell-in demand (vs. prior year)
INDEX: 2022=100
Nov. 2023
announcement

N. America

106-110Europe95-99

N. America – Reflecting demand growth, expanded sales vs. prior year.
Maintained market share.

Europe – Despite resilient demand, sales remained 97% of prior year reflecting
weak channel foundations. Market share decline in HRD also.
⇒Urgent need to rebuild channel foundations

China – Ensured a focus on premium and significantly increased sales vs. prior year
Global – Also in Asia & Pacific, captured demand shift to HRD and increased sales
vs. prior year. Ensured premium focus globally.

2023 full year sales results (vs. prior year)
INDEX: 2022=100
Results

107
101

N. America
EuropeChina
Global* Demand: Bridgestone estimate *Demand for N. America: USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) based

9/50

Results

107
97
138
105

Consolidated financial results by segment for fiscal 2023
(Yen in billions)2022 Results

Japan

(*1)

Revenue
Adjusted OP
Margin
Revenue

China, Asia-Pacific

Adjusted OP
Margin
Revenue

Americas
Europe, Russia,
Middle East, India
and Africa

Adjusted OP
Margin
Revenue
Adjusted OP
Margin2023 Results

1,157.1

1,242.4

13.0%

16.6%

39.9

41.6

150.6

vs. Projections (%)

vs. PY (%)

206.5(Ref. Feb 16, 2023 announcement)

+7

+37

(3)

+29

+3.6pp+ 4.1pp

+4

(15)

(5)

457.0

461.1

+1

8.7%

9.0%

+0.3pp(1.1)pp

(16)

(21)

1,988.0

2,080.0

12.6%

10.2%

251.2

212.0

870.0

66.4

7.6%

908.5
(*2)

25.1

2.8%

+5

+3

(2.4)pp(3.2)pp

(62)

(50)

+4

(4.9)pp+4(2.9)pp(*1) From Fiscal 2023, profit/loss of export business of Japan (PSR/LTR and TBR) are reclassified from “Inter-segment” to “Japan segment”. Figures of 2022 have been recalculated with this new method for y/y comparison purpose.
(*2) Margin level excluding previous year’s temporary factors such as transfer pricing: 5.2% (approx.)

10/21

Review of 21MBP

11/50

21MBP (announced Feb. 2021)
2023

3,300 B JPY

4,313.8 B JPY

Adj. Operating
Profit450 B JPYlevel

480.6 B JPY

Adj. Operating
Profit Margin

13% level

11.1%

ROIC

10% level

8.7%

ROE

12% level

10.4%

Profit from continuing
operations

290 B JPYlevel

326.9 B JPY

Continuous
improvement

200 JPY (plan)

Revenue

Review of 21MBP

Return to a “strong” Bridgestone
capable of adapting to change
ー Rebuild earning power

Dividend per share

12/50

2023 ResultslevelReturn to a “strong” Bridgestone capable of adapting to change

Rebuild earning power ①: Manufacturing footprint & business portfolio restructuring
 21MBP – 2019: Planned approx. 40% reduction from approx. 160 locations⇒ By 2023: Executed restructuring of approx. 50 locations almost as planned
Diversified products business

Withdrawal from conveyor belt business (without reduction of site)

Tire business
Tire businessRestructuring of production items in Iwata plant (without reduction of site)

Bridgestone (Huizhou) Tire Co., Ltd.,

Bethune plant, France

Automotive seat pad plant (Ageo plant)
Bridgestone Cycle Co., Ltd. (Kisai Plant)

Tire & solutions business

Bridgestone Aircraft Tire Company (Asia), Ltd.,(AC* retread plant)

Internal manufacturing

Bridgestone (Huizhou) Synthetic Rubber Co., Ltd.

(Synthetic rubber plant)

Restructuring of Advanced Chemical Products in Japan (3 sites)
Transfer of Chemical products solutions business (16 sites)
Transfer of Anti-Vibration rubber business (6 sites)

Transfer of Bridgestone Sports Arena Corporation(without manufacturing site)
Diversified Products Business

Tire businessRangsit plant, Thailand

Bridgestone Everlight (Shanghai) Co., Ltd.
(Polyurethane foam products in China)
Diversified Products Business

PT Bridgestone Astra Indonesia(Automotive anti-vibration rubber)

Bridgestone Tecnifibre Co., Ltd., Thailand

Diversified products business

Firestone Building Products Company LLC(U.S. Building products business)(15 sites – 13 in the U.S., 2 in other regions)

Solutions businessRetread material plant (Mexico)
Diversified products business

Bridgestone Automotive
Products de Mexico S.A. de C.V., Mexico(Polyurethane for automobiles in Mexico)

Tire business

Port Elizabeth plant, South Africa*AC: Aircraft tires

13/50

Return to a “strong” Bridgestone capable of adapting to change

Rebuild earning power ②: Expense and cost structure reformation
 Reduction of fixed cost: Planned 18 B JPY during 21MBP ⇒ Reduced 20 B JPY (+2 B)

21MBP
2021

2022

2023

Improvement plan for 2021-2023 through structure reformation: Total 18 B JPY reduction

Fixed
cost

Improvement :20 B JPY reduction(Improvement exceeding plan of 18 B JPY) Business & manufacturing footprint restructuring, office consolidation, etc.
- Japan: Restructured and consolidated offices

 Improvement of business productivity & efficiency- Japan: Streamlined organization structure- Global: Improved efficiency of indirect fixed costs, etc.

Variable
cost

14/50

Maintain competitive variable cost ratios
 Logistics cost optimization: Despite inflation impacts, executed including improving efficiency
through reinforcement of global optimization for ocean freight, etc.
- Optmized logistics cost – Improve loading efficiency, promote direct delivery, etc.

Return to a “strong” Bridgestone capable of adapting to change

Rebuild earning power ③: Management focusing on capital cost
 Promote rebuilding of earning power across the value chain
through enhancing understanding of ROIC at the on-site(genba) level Build structure to invest and inject resources being conscious of capital cost

• Global M&A executive meeting/ Global investment executive meeting
Discuss major projects among the global management teamEvaluate the certainty of investment return based on ROIC ⇒ Periodic follow-up• Continue to strengthen global controlling function• Support prompt decision making while strictly evaluating investment capital and returns forinvestment activities⇒Strengthen financial function to rigorously monitor and recommend improvements during
investment progress as well

• Japan ー Enhance understanding and actions to improve ROIC throughROIC ambassadors (approx. 70 people)• Global – Introduce the ROIC award in the Global Total Quality
Management conference

ROIC tree: 2019 ⇒ 2023

ROIC (＞Capital cost)
2019

7.4%

2023

8.7%

Adj. Operating Profit
Margin (after tax)*

Deterioration

7.8%

6.8%

*Fix the tax rate at 30％+1.3 pp
improvement
Improvement

2023

2019

2019

37.8%

Invested Capital
Turnover2019

1.09 times

2023

1.12 times

2023

38.4%

Operating Expense Ratio
2019

28.0%

*Cash Conversion Cycle (CCC)=
Days of inventory outstanding＋Days of sales outstanding –Days of payables outstanding

15/50

Gross Profit Margin

2023

27.2%

Cash Conversion Cycle (CCC)*
2019

149 days2023

161 days

Fixed Asset Turnover2019

1.53 times

2023

1.63 times

 ROIC 7.4％ in 2019⇒ 8.7％ in 2023

• Improvement in gross profit margin: Strengthen focus on premium
segment and improve price & sales mix• Improvement in OPEX ratio: Thorough expense management and on-site
productivity improvement in production• Improvement in fixed asset turnover ratio: Enhance the efficiency of
existing assets by manufacturing footprint and business portfolio
restructuring, office consolidation, as well as periodic reviews of land &buildings, and cross-shareholdings, etc.

 Remaining issues and new issues:• The 2023 target of 10% ROIC was not achieved – Promoted ROIC
improvement activities steadily, but insufficient “earning power”⇒ 2024: Promote reinforcement of earning power• Deterioration in cash conversion cycle:
Improve accuracy in demand and sales forecasting(especially in N. America & Europe in particular)
Especially for 2023, significant demand decline mainly in N. America and Europe⇒ Insufficient response to decrease in sales volume⇒ Thoroughly improve management quality and working & business quality

Review of 21MBP

Foundation for premium enhancement
and evolution with solutions business

16/50

Reinforce foundation for premium enhancement: Strategic resource investment
 Even in the challenging business environment, thoroughly selected & executed investments to reinforce production
promoting a focus on premium
PS - Investment to reinforce production

 Strengthen manufacturing structure for premium tires

Premium tire business- Strategic resource amount (B JPY)

• Replaced manufacturing equipment to manufacture HRD (incl. ultra-HRD tires 20 inch
& above) globally• ”New premium in EV era”: enhance ENLITEN products• Investments for production enhancement (Japan, Europe, L. America)

OR - Investment to reinforce production

 Reinforce production to manufacture Dan-Totsu product “MASTERCORE”• Shimonoseki & Kitakyushu plant: reinforce production• Saga plant: reinforce production of steel cord

21MBP total

Strategic expense

100.1 B JPY
6.4

46.7

 Strengthen manufacturing for premium new tires– Adjusted investment timing based on demand environment

15.0• Chonburi plant, Thailand: Global supply source – adjust speed of production increase• Warren plant, U.S.: Responding to the severe tire demand environment in N. America,
adjusted timing

MC* - Investment to reinforce production*MC: Motorcycle tires

 Focus on premium race & sports areas*Bridgestone estimates for large superbike
category over 1000cc

17/50

2023 total

Strategic investment

TB - Investment to reinforce production

Global No.1* in OE fitment for the premium segment• Nasu plant: reinforce production

161.8 B JPY

4.8
10.2

Currency
exchange

USD
EUR

7.3

93.7

39.4

2021

2022

2023

110 JPY
130 JPY

132 JPY
138 JPY

141 JPY
152 JPY

Reinforce foundation for linkage with solutions business: Strategic resource investment
 Linked with the premium tire business, executed investments to reinforce & enhance PS retail & service, TB retread,and mining solutions
 To lay foundation for future growth, acquired a digital fleet solutions provider that supports mobility tech in N. America
Reinforce PS retail & service solutions network (Japan & N. America)

Enhance & upgrade sites to improve customer experience value (UX) combining
real & digital capabilities

Solutions business- Strategic resource amount (B JPY)
21MBP total

TB retread: Reinforce production in the U.S. & Japan– Strengthen as a bridge between the premium tire business and the solutions business
Abilene plant, U.S.: Increase production capacity /Enhance equipment & personnel in Japanese retread manufacturing footprints, etc.

Enhance mining solutions network<M&A> Acquisition of Otraco International Pty Ltd (2021)
Off-the-road tire solutions provider in Australia, Chile, and South Africa– Linked with the expansion of “new premium” Dan-Totsu product Bridgestone MASTERCORE,
amplify value

Establish mobility tech business in N. America<M&A> Acquisition of digital fleet solutions provider Azuga (2021)– Linked with TB premium tires & retread, enhance and expand “Fleetcare”

Adapt to new mobility – Build a mobility ecosystem<M&A / minor investments, etc.＞
Acquisition of a tire sensor & data management service provider Tyrata (2023) /minor investments, venture capital investments, etc.
18/50

150.9 B JPY

Strategic M&A
Strategic rxpense
Strategic
investment

66.9

2023 total

600

8.0

400

53.2

200

5.1
8.7

0
Currency
exchange

58.4 B JPY

USD
EUR

25.5
3.1
8.5
13.9

30.3
20.1

2021

2022

2023

110 JPY
130 JPY

132 JPY
138 JPY

141 JPY
152 JPY

Review of 21MBP

Lay foundation for premium enhancement ⇒ Complete

19/50

Lay foundation for premium enhancement

Premium tires for passenger cars ① Expand HRD tire sales
 Achieved sales expansion of HRD tires through 21MBP⇒ Captured the most of HRD tire demand increase

2023: In the challenging business environment, focus on the PS premium tire segment supported the Group’s performance⇒ 2024: Further accelerate premium enhancement including sales expansion of ultra-HRD tires 20 inch and above
N. America & Europe:
Sales portion of tires 18 inch & above (full year)

Global‐OE + REP:
Sales volume of tires
18 inch & above (INDEX: 2020=100)

138

60%

REP

119

55%

61% 61%

40%

20%

100

20/50

‘21

‘22

2023

‘24
plan

25% 24%26%

Approx.

17%0%2020 2021 2022 2023
2023 2024
‘21

‘22

28%

33%

42%

37%

Approx.

45%

58%

63% 65%

40%

30%

10%

‘20

Approx.
70%

‘24
plan

REP

69%

66% 70%

30%

‘20

OE

50%

118

98

OE

70%

128

128

18 to 19 inch

Approx.

138

148

108

20 inch & above

Approx.155

158

Emerging markets (Asia & Pacific, China, L. America)
Sales portion of HRD tires 17 inch & above (full year)(including sales portion of ultra-HRD tires 20 inch & above)

30%
7%

8%

9%

‘20

‘21

‘22

11%

33% 34%

Approx.
40%

Approx.
13%2020 2021 2022 2023
2023 2024

‘24
plan

‘20

‘21

‘22

2023 ‘24

plan

‘20

‘21

‘22

2023 ‘24

plan

Lay foundation for premium enhancement

Premium tires for passenger cars ② Improve sales mix of premium tires
 Promote sales expansion of premium tires in each region including premium tire brands⇒ Establish foundation for further focus on premium
2023: Achieved 57% of premium segment sales portion globally (PS REP)
⇒ 2024: Accelerate premium enhancement including sales expansion of ENLITEN REP tires

Sales portion of premium tires – PS REP (Global)

HRD tires
Europe & N. America: 18 inch & above
Emerging countries: 17 inch & above

HRD tires*

Ultra-HRD tires: 20 inch & above*N. America, Europe, Middle east: 18 inch & above
Other regions: 17 inch & above

Premium tire brand +Premium tires in each region

46%

Premium tire brandOtherpremium tires
in each region

21%
25%

Premium tires in each region
21/50

2021

57%

Approx.

60%

Approx.

25%

32%

Approx.

35%

2023

2024
plan

49%
21%
28%
2022

24%

Lay foundation for premium enhancement

Premium tires for passenger cars ③
Launch Dan-Totsu products equipped with ENLITEN - “New premium in EV era”
N. America

Launched May 2023

handling performance.

High-performance all-season tirewith enhanced tread resistance to wearthat responds to sports EV.

50％UP vs Bridgestone’s

conventional product

Renewable & recycled material ratio:

50%

User review

 Highly recommended tire withexcellent quietness and ride comfort
compared to OE fitted tire.
※Since it is in the early stage of market launch, there are
no reviews on wear performance, but many expect highwear resistance.

22/50

Launched Sep. 2023

Further evolution of Dan-Totsu

2023 sales results:
Sales volume: Approx. 150% vs. planLong-life:

EuropeRanked No.2 in UHP AS categoryof Tire Rack (as of Jan. 24, 2024)
User review

 Excellent dry handling and wet traction.
 Superior ride comfort and quietness
compared to OE fitted tires.
 Good high contrast side with premium
atmosphere.

Launched Jan. 2023

Launched Sep. 2023

Significantly improved WET
performance and rolling resistance,
important performances in Europe.
Balanced in every performance at ahigh dimension.

Touring all-season tire with both WET
performance, an important performancein Europe, and SNOW performanceneeded for all-season use.

More than% higher wear resistancevs Bridgestone’s conventional productvs Bridgestone’s conventional product20

External evaluation organization / Magazine evaluation

Won TUV 2023 Best in class wet performance*（245/45R18 ）*Tests carried out by TÜV SÜD on the request of Bridgestone in June 2022 at the facilities ATP Papenburg(Germany) & Bridgestone EUPG (Italy) for wet tests with BMW 520i & BMW 530d, on tyre size 245/45 R18 100Y XL.
Turanza 6 compared to the performances of main competitors in the same segment: CONTINENTAL Premium
Contact 6, MICHELIN Primacy 4+, PIRELLI Cinturato P7 (P7C2) Report No. [713263409].

AutoBild Allrad No.1（225/65R17）
User review
 Good ride comfort, quietness and handling.
Especially reliable in the rain.

More than

20% higher wear resistance

External evaluation organization / Magazine evaluation

TUV 2023 No.1**（205/55R16）

Outstanding braking performance across the seasonsBest-in-class wet braking and top 2 position for dry & snow.

**Tests carried out by TÜV SÜD on the request of Bridgestone in February 2023 at the facilities Bridgestone
EUPG (Italy), Bridgestone SPG (Sweden) and ATP Papenburg (Germany) for tests with Volkswagen Golf VIII, ontyre size 205/55 R16 94V XL Turanza All Season 6 compared to the performances of main competitors in thesame segment: Michelin CrossClimate 2, Continental AllSeasonContact and Goodyear Vector 4Season Gen3.
TÜV SÜD Report No. 713281374.

【Evaluation comment】 High level of SNOW performancein addition to dry grip and wet grip performance.

AutoBild Allrad 2023 No.1（235/65 R 17）
AutoBild 2023 No.3 （225/65R17）

Lay foundation for premium enhancement

Premium tires for mining vehicles: Expand sales and increase market share 2023: OR business supported the group’s performance in the challenging business environment
 Increased sales volume and market share of ultra-large & large tires with Dan-Totsu product MASTERCORE at the core.
Established foundation for solutions expansion ⇒ 2024: Continue reinforcement
Sales volume (INDEX: 2020=100)
Ultra-large

Bridgestone MASTERCORE ratio
Large*OE+REP
Approx.

Approx.

125 125

152

119

23/50

Approx.

90%

90%

90%

80%

40%

Earn the trust of customers based on the
product power of Dan-Totsu products
and on-site (Genbutsu-Genba) power

100
‘21

Approx.

Approx. Approx.

Approx.

100‘20

158 160

137

112

Ultra-large 63 inch

‘22

2023

‘24
plan

‘20

‘21

‘22

2023 ‘24

plan

‘20

‘21

‘22

2023 ‘24

plan

Review of 21MBP

Lay foundation for evolution with solutions business⇒ Partially achieved

24/50

Lay foundation for evolution with solutions business

Clarify “what to do” and ”what not to do”: ”What to do”
 2023: Focus on and reinforce solutions which amplify value of premium tire “Dan-Totsu products”

 Began initiatives to enhance retail & service solutions network ⇒ 2024: Reinforce PS retail service sites in N. America & Japan Commercial BtoB solutions: Enhanced TB retread in N. America & Japan as well as mining & aviation solutions, established “Fleetcare” concept⇒ 2024: Strengthen value creation of TB retread in N. America & Japan as well as mining & aviation solutions– Start enhancing “Fleetcare” around N. America ⇒ Connect to establishing the mobility tech business
Mobility solutions

Tire-centric solutions (commercial)

Web Fleet Solutions in Europe /Americas – Enhance and reinforce TB retread
AZUGA in N. America
Japan – Enhance and reinforce TB retread /Begin initiatives to create new value:
Expand new tire x retread tire solutions program ”TPP”
Establish the concept of “Fleetcare” business model⇒ From concept to execution – Create value- Strengthen linkage between premium tire and retread

Fleetcare

Premiumtire

Tire-centric
solutions

PS retail & service solutions network

Mobility
solutions

U.S. – Improve retail operations
Japan – Enhance retail & service solutions network“B-Select”

Tire-centric solutions (commercial)

Expand mining & aviation solutions –“Wear prediction” ⇒ “Durability prediction” solutions⇒ Aim to establish the mobility tech business(Strengthen co-creation with partners)

25/50

Mining solutions network

Real x DigitalStrengthen linkage with the service network of Otraco,mining tire solutions provider (Acquired in 2021)

Lay foundation for evolution with solutions business

Clarify “what to do” and ”what not to do”: ”What not to do”

 2023: Determined unprofitable projects with viewpoints of profitability, growth potential, and value creation one by one⇒ Discontinued solutions for consumer tires (mainly for PS) in N. America & Europe / Rebuild retail in Europe– Establish structure to focus on value creation

Europe• BtoC Subscription:
Discontinue “MOBOX”• BtoB Subscription: Rebuild⇒ Integrate into “Fleetcare”

N. America• Retail: Rebuild• BtoC Subscription: Discontinue “RESOLV”• Retread: Rebuild and limit areas
Asia & Pacific• Retread: Limit areas and customers- Australia & Thailand: Rebuild- Some areas: Withdraw• BtoC Mobile van service: “Firestone Direct”⇒ Consolidate into BtoB for TB to further
enhance the mobility ecosystem by“Fleetcare”*TB: Truck & bus tires

26/50

Lay foundation for evolution with solutions business

Reinforce U.S. retail & service solutions: BSRO (Bridgestone retail operations) 2023: Realize “improvement of business quality” as a stand-alone business in addition to strengthening functions as a growthenabler for the premium tire businesses leveraging a network of approx. 2,200 equity stores in the U.S.
⇒ 2024: Take on the challenge for a new store format - Further reinforcement and expansion
U.S. retail: Overview & main KPIApprox.

2,200 sites(equity stores)

America’s largest auto care network

U.S. retail operations : Performance summary*Result figures are approximate
21MBP

Adj. Operating Profit[M USD]250
6%

Adj. Operating
300

Profit Margin[%]

Main KPI
Reinforce focus on premium
Increase HRD ratio

Amplify value during “use”:
Reinforce maintenance service
Increase vehicle inspection rate
(Number of inspection ÷ visitors)

2019

2023

30%

46%
(+16% vs. 2019)

12%

17%
(+5% vs. 2019)

Achieve “improvement of business quality” combining premium tires & service.
Amplify value during customers’ tire “use” – Improve UX.
27/50

250
5%

300 M USD level
7.0%
6% level
6.5%
6.0%

250
200
150

5.5%

120
3%

100
50
Revenue[M USD]

5.0%
4.5%

100
3%

4.0%
3.5%
3.0%

2019

2020

2021

2022

2023

3,900

3,600

4,000

4,400

4,600

Significantly improved operating profit in 2021/
Steadily increased profit in 2022 and 2023
2020 ⇒ 2023: Tripled profit/ Doubled profit margin

2.5%

Lay foundation for evolution with solutions business

Tire-centric solutions for truck & bus: Reinforce and enhance retread and “TPP” in Japan 2023: Achieved sales expansion and market share increase of retread based on the strong foundation of TB REP new premium tires(N. America & Japan)⇒Establish foundation to enhance solutions – 2024: Continue to reinforce value creation as a bridge between the premium tire businessand the solutions business
N. America
TB
retreadAchieved sales expansion and market share increase of TB retread tires
based on the strong business foundation of TB new premium tires⇒ Establish foundation to enhance solutions

Market share(INDEX: 2020=100)

120.0%
110.0%
100.0%

100 102’20’21

TB REP new tire

Solid foundation forenhancement of TB
retread and solutions

28/50

116

Sales volume

Approx.
120(INDEX: 2020=100)

107
’22

100
2023 ’24 plan

’20

108
’21

117

’22

2023 ’24 plan
107

(BS+FS brand)(INDEX: 2020=100)

103

101

100
’20

’21

’22

TB
retreadCreate demand for retread as a market leader
Connect to “TPP” solution expansion

2023 ’24 plan

Approx.
110Market share(INDEX: 2020=100)

100

106

Market share

124

Approx.
125

Japan

’20

102
’21

105

*Demand and share are
Bridgestone estimates(INDEX: 2020=100)

106
100

’22 2023 ’24 plan

“TPP” solution

All-in-one subscription
solutions service
Including TB new tires, retread,and maintenance

’20

106
’21

TPP subscription vehicles(1,000 vehicles)

31’20

Approx.
135

Sales volume

57

117

112

2023 ’24 plan

’22

Approx. 80

66

39
’21

’22

2023

’24 plan2023 performance by business portfolio

7%

Diversified products business

Revenue portion

Solutions business
Revenue

1,323.7

Adj. Operating
Profit72.2

Adj. Operating
Profit Margin

5.5

114%

B JPY

of PY

122%

B JPY

994 B JPY
5.1%((0.6)pp vs. PY )Revenue

153.7 B JPY(115% of PY )Adj. Operating
Profit Margin

17.2%(+2.5pp vs. PY )Adj.
Operating Profit

4,313.8 B JPY

Adj. Operating
Profit Margin

105% of PY

Adj.
Operating Profit
Adj. Operating
Profit Margin• Retail in the U.S.: Solid profit increase vs. prior year
• Retail in Europe: Profit decrease vs. prior year－Promote restructuring in 2024

29/50

Revenuevs. PY

Retread

Revenue

2023

of PY

(113% of PY )Adj. Operating
Profit Margin

29%
Revenue portion+0.3pp%RetailRevenue*Sales revenue of retail tires included

480.6 B JPY
100% of PY

11.1%(0.6)pp vs. PY

64%
Revenue portion

298.4 B JPY

107%

13.2 B JPY

139%

4.4%

+1.0pp

of PY

of PY

vs. PY

Premium tire business
Revenue
Adj.
Operating Profit
Adj. Operating
Profit Margin

2,921.5
400.7
13.7

%

B JPY

B JPY

102%
of PY

96%
of PY

(1)pp
Vs. PY

Business Plan for 2024 – 1st year of Mid Term Business Plan (2024-2026)

30/50

Remaining issues for 21MBP & New issues for 2024
2024
 Return to a “strong” Bridgestone capable of adapting to change ⇒ Not yet returned Complete laying the foundation for premium enhancement and evolution with solutions business
21MBP
Remainingissues• Laying foundation for premium enhancement ⇒ Completed: Reinforced structure to “produce & sell” premium tires

Executed strategic growth investments even in the challenging business environment and promoted premium tire reinforcement globally.
In the U.S., despite a difficult performance in 2023, the foundation for premium enhancement of PS HRD tires & TB retread was solid.

• Linkage with solutions business ⇒ Partially achieved: 21MBP – With setback in solutions for consumer tires, clarified “what to do” & ”what not to do”.
Decision to promote mainly retail & service as well as commercial BtoB solutions in 24MBP.

 Penetration of the Bridgestone DNA⇒ Re-enhance. Quality of management varies among regions and functions, need to improve globally Management quality and working & business quality (Globally, incl. N. America & Europe):
Penetration of Bridgestone DNA is not enough

2024
New
issues• PDCA / WHY-WHY-WHY analysis / steady basic operations• Ensure 3S “Seiri (Select & remove), Seiton (Sort), Seiso (Keep clean)”+ Seiketsu (Standardize) and Shitsuke (Sustain)• Monitoring signals and risk sensibility / PDCA to follow up on investments• Business & sales management / Improve accuracy in demand, sales, and business performance forecasts(especially in N. America) Restructure & rebuild management and channel foundations for
the European business・ Improve profitability of retail, TB, and retread
・ Deterioration of the economy exposed weakness in foundation

 Insufficient “earning power”

・ In the challenging business environment,
continue reinforcing investment while staying attentive & lean in 2024
・ Resource: Thoroughly select injection for 2024, but continue reinforcing
strategic investments mainly around premium tires

31/50

Reinforcebusiness quality(Globally, incl.
N. America & Europe)

2nd stage of restructuring& rebuilding

Further focus onvalue creation
Creation of “new premium

Reinforce & shift tomanagement respecting
being on-site (Genba)
in each area
47 areas
Introduce
new talent & schemes
to reinforce “business
management” & “on-site(Genbutsu-Genba)” activities
in N. America & Europe

Positioning of “Plan for 2024” in the 24MBP
2021

21MBP

2023

Return to a “strong” Bridgestone
capable of adapting to change Rebuild earning power Complete laying thefoundation for premium
enhancement

24MBP

2024

2025 & 2026

True next stage

変化に対応できる強いブリヂストンへ戻す
Remaining issues / New issues
Top priority for 2024

 Reinforce business quality– Improve management quality and working & business quality⇒ Stay attentive and lean in the challenging business environment

Especially in 1Q, expect challenging environment mainly in N. America & Europe
reflecting TB REP demand decline - a remaining issue from 2023

 Execute the 2nd stage of restructuring & rebuilding– Especially for Europe (retail, TB, retread, etc.), China, Thailand, and Japan REP channel rebuilding

Build foundation toward the “true next stage” in 2025 & 2026
 Further focus on the premium tire business Reinforce
earning power• Launch Dan-Totsu products and expand sales of premium tires– continue market share increase and sales mix improvement• Further reduction of loss-making/unprofitable business• Value creation by fusion of “New premium” ENLITEN and BCMA: ENLITEN expansion

 Business cost reduction• Global procurement, global SCM logistics transformation, BCMA, Green & Smart, steady on-site productivity
improvements

Tackle past negative legacies squarely
without delay
32/50

Focus on execution and deliveringresults for immediate issues

Lay foundation for future growthCreate good business quality: 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 Deming Plan in the 1960s aiming to receive
the Deming Application Prize

Seiri(Select &remove)SeitonDeming Plan
Basic
thought

3S “Seriri, Seiton, Seiso” + Seiketu & Shitsuke(Sort)

Good company quality makes good quality of products and services① Master PDCA

② Use why why analysis (WHY-WHY-WHY)

5 concepts ③ Promote rational standardization⑤ Control important points

1968:④ Explain by using accurate data

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

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
33/50Plan for 2024: Business environment assumptions
2024
Business
environment*OE: Tires on new vehicles






Major
tire demand
trend

Severe economic trend (especially in Europe) / High energy cost & significant increase in labor cost /Higher ocean freight due to the situation in the Red Sea / Cost increase related to sustainability
Continuous monitoring of geopolitical risks required
PS REP: N. America – Distribution inventory normalized in 1H 2023. Reflecting sell-out recovery, sell-in demand isalso expected to slightly increase vs. prior year, having bottomed out in 2023.
Europe – Sell-out recovery remains slow. Distribution inventory is expected to normalize in 1Q 2024, but
tendency to reduce inventory. Sell-in demand is expected to be the same level as prior year.
PS REP high rim diameter tires: Expect continuous demand growth globally

TB REP: N. America – Recovery trend for sell-out. Distribution inventory is expected to normalize in 1Q 2024,
and though sell-in demand recovery will be delayed for 1Q, expect increase vs. prior year for the full year.
Europe – Sell-out demand will continue to be weak in 1H but slow recovery expected in 2H.
Continuing from prior year, expect lower inventory level than usual as dealers tend to reduce distribution
inventory reflecting the economic downturn. Sell-in demand is expected to be the same level vs.
prior year reflecting sell-out and distribution inventory conditions.



OR REP & OE*: Ultra-large/Large – Expect same level as prior year
Small & Medium – Expect slight decline vs. prior year reflecting the economic downturn in Europe

The business environment continues to be severe (especially for 1Q/1H 2024)“Reinforce business quality” – “Passion for Excellence”
34/50

N. America & Europe – Truck & bus tires (replacement): Sell-in demand trend
Compound annual
growth rate

N. America

CAGR(2018~2023)

2018
18FY

2019
19FY

2018-2024 trend

2020
20FY

2021
21FY

2022
22FY

2023
23FY

101％

2024
24FY

Forecast From the COVID-19 outbreak impact in 2020, demand sharply recovered between
2021 and 2022. From 2023, sell-out demand declined impacted by the economic
slowdown and entered a distribution inventory adjustment phase.
 From 2H 2023, reflecting sell-out demand recovery, sell-in demand also saw
gradual recovery but slowly As of the end of 2023, distribution inventory adjustments progressed for fleets
and in major dealers, but normalization is expected to be in 1Q 2024
⇒From 2Q 2024 onwards, recovery trend is expected throughout the year As a trend, regardless of the decline in 2023, CAGR between 2018 (before
COVID-19 impacts) and 2023 was 101%, and is expected to continue
recovering in 2024

Compound annual
growth rate

EuropeCAGR(2018~2023)

2018
18FY

2019
19FY

2020
20FY

2018-2024 trend

2022
22FY

2023
23FY

2024
24FY

Forecast From the COVID-19 outbreak impact in 2020, demand sharply recovered
between 2021 and 1H 2022. From 2H 2022, demand declined impacted by the
economic downturn and entered a distribution inventory adjustment phase.
 Inventory adjustments was completed in 2023, but inventory levels remained
lower than before with dealers tending to reduce distribution inventoryreflecting the economic downturn CAGR between 2018 (before COVID-19 impacts) and 2023 was 97%, showing adeclining trend Assumed to stay at same levels for 2024 as 2023 level, with no significant
growth* Demand: Bridgestone estimate *Demand for N. America: USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) based

35/50

2021
21FY

97％

2024 Demand & sales volume plan: Truck & bus tires (replacement)
TB demand (REP)

TB sales volume (REP)

2024 full year forecast vs. prior year
Sell-out

Sell-in2024 full year forecast vs. prior year

N. America – Expect recovery to be relatively slow in 1H but advance in 2H,and exceed prior year for the year
Europe – Economic downturn will continue in 1H. Expect moderate
recovery in 2H and slight increase vs. prior year for the year.
N. America – Distribution inventory adjustments in some dealers will take until
end of 1Q 2024 and sell-in demand recovery is expected toremain slow for 1Q. For fleets, inventory adjustments progressed
as of the end of 2023, and is expected to recover throughout
2024. Total sell-in demand is expected to exceed prior year byjust under10%
Europe – Inventory levels will remain lower than usual as dealers tend to
reduce distribution inventory reflecting the economic downturn.
Sell-in demand is expected to be the same level vs. prior year
reflecting sell-out and distribution inventory conditions.

N. America – Sales volume will not recover vs. prior year for 1Q 2024 withremaining impacts from distribution inventory adjustments. From
2Q onwards, sales will increase vs. prior year linked with demand
recovery. Slight increase in market share for new tires. Leveraging
a strong business foundation including Dan-Totsu products,
customer-base, solutions network, and retread, reinforce the entire
TB business incl. market share increase for retread.
Europe – Although sales volume will not increase significantly reflecting demand,
expect slight increase in market share by ensuring a focus on premium
and with the launch of new products.
Global – Also in Asia and Japan, reduce sales of unprofitable sizes & products,
and ensure a focus on premium. Plan global sales increase vs. prioryear driven by growth in N. America.

2024 full year sales forecast (vs. prior year)
INDEX: 2023=1002024 full year sell-in demand forecast (vs. prior year)
INDEX: 2023=100
N. America

Europe106-110100 level* Demand: Bridgestone estimate *Demand for N. America: USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) based

36/50

N. America
EuropeGlobal

106-110101-105

106-110

2024 Demand & sales volume plan: Passenger car tires (replacement)
PS total demand (REP)

PS total sales volume (REP)

2024 full year forecast vs. prior year

2024 full year forecast vs. prior year

Sell-out

Sell-inN. America – Expect continuous recovery trend from 1H 2023, andslight increase vs. prior year
Europe – Recovery trend from 3Q 2023, but remains slow reflecting
the economic downturn
N. America – Distribution inventory normalized in 1H 2023. Reflecting
sell-out recovery, sell-in demand is also expected to slightly
increase vs. prior year having bottomed out in 2023.
Europe – Reflecting sell-out, distribution inventory is expected tonormalize in 1Q 2024 and at lower level than other years. Sellin demand will also not recover significantly and is expected toremain at same level vs. prior year.

N. America – Reflecting demand increase, plan sales increase vs. prior year
Europe – Ensure a focus on premium. Continuing to reduce the low rim
diameter category, plan decline in sales volume and expected
decline in market share vs. prior year for PS total
Global – Emerging countries & growing markets: Taking in demand growth
in India, Southeast Asia, etc. plan sales increase vs. prior year

2024 full year sales forecast (vs. prior year)
INDEX: 2023=1002024 full year sell-in demand forecast (vs. prior year)
INDEX: 2023=100
N. America

Europe101-105

100 level* Demand: Bridgestone estimate *Demand for N. America: USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) based

37/50

N. America
EuropeGlobal

106-11095-99

106-110

2024 Demand & sales volume plan: Passenger car high rim diameter tires (replacement)
PS high rim diameter (18 inch & above) demand (REP)

PS high rim diameter (18 inch & above) sales volume (REP)

2024 full year forecast vs. prior year

2024 full year forecast vs. prior year
N. America – Based on demand growth, Dan-Totsu products, and new channel
development, plan sales expansion vs. prior year. Expect market
share increase in the premium segment.

Sell-out

Sell-inN. America – Continuous resilient demand reflecting the shift tohigh rim vehicles & EVs. Expected demand to exceed
prior year.
Europe – Maintain relatively resilient demand and expect to exceed
prior year

Europe – Ensuring a focus on premium, expand Dan-Totsu products and sizes,
refine wholesale sales structure as well as rebuild the retail business.
Plan sales expansion vs. prior year and expect increase in market share.

N. America – Reflecting sell-out, expect continuous growth andincrease vs. prior year

Global – In addition to N. America & Europe, take in demand shift to HRD in
emerging countries & growing markets. Plan sales expansion globally.

China – Continue focus on premium and plan sales expansion vs. prior year

Europe – Reflecting sell out, expect slight increase vs. prior year

2024 full year sales forecast (vs. prior year)
INDEX: 2023=100
N. America

2024 full year sell-in demand forecast (vs. prior year)
INDEX: 2023=100
N. America

Europe106-110101-105* Demand: Bridgestone estimate *Demand for N. America: USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) based

38/50

EuropeChina
Global116-120111-115
116-120116-120

Plan of financial results for fiscal 2024
21MBP

24MBP

Return to a “strong” Bridgestone
capable of adapting to change
Currency
exchange

USD
EUR

121 JPY
134 JPY

Adj. Operating
4,500
Profit Margin
4,000
[%]

9.8%
343.1

3,000
2,500

2015

3,790.3
ROIC
14.7％
ROE

394.3

132 JPY
138 JPY

11.7%

141 JPY
152 JPY

135 JPY
149 JPY

13.3％

True next stage
 Revenue:

12.0%
13.0%
14.0%

11.1%

(+0.8ppvs. prior12.0%
year)

480.6

530 11.0%
B JPY

482.6

110% vs.10.0%
prior year

7.7%

113%

9.0%

vs. prior year
8.0%
excl. currency
exchange impact

207.4

2,000

Revenue[B JPY]110 JPY
130 JPY

12.1%

517.2

3,500

1,500

107 JPY
122 JPY

13.6%

5,500

Adj. Operating
Profit[B JPY]
5,000

109 JPY
122 JPY

Remaining issues/ New issues

7.0%

2020

2021

2022

2023

2024

vs. prior year

3,507.2
7.4%

2,695.2
5.1%

3,246.1
9.0%

4,110.1
9.4%

4,313.8
8.7%

4,430.0
9.4%

103%
+0.7%

10.0%

-0.9%

12.9%

10.9%

10.4%

10.6%

+0.3%

Profit from continuing
operations [B JPY]

284.3

240.1

-19.8

307.9

305.4

326.9

359.0

110%

Profit margin fromcontinuing operations [%]

7.5%

6.8%

-0.7%

9.5%

7.4%

7.6%

8.1%
210

+0.5%

Dividend per share
[JPY]

39/50

130

160

110

170

175

200 (plan)(forecast) Adj. Operating Profit:

Ensure reinforcement of earning power through
Dan-Totsu product launches, improvement of sales mix
as well as reduction of business costs.
Plan 530 B JPY level, 110% of prior year.
Plan 12% level in margin. ⇒Return to 2021 level

 ROIC:

Plan more than 9% toward our target of 10% throughreinforcement of earning power Shareholder returns:

Continuous improvement - 210 JPY per share (forecast)

6.0%

2019

Plan

Considering demand recovery from 2023, plan global
sales expansion and market share increase mainly inthe premium segment. Plan 4,400 B JPY level.

+10

24MBP

2024

Return to a “strong” Bridgestone
capable of adapting to change
Build foundation
toward the “true next stage”

2025 & 2026 - “True next stage”
2026

final year

640 B JPY level
Adj. Operating Profit Margin: 13% level
Adj. Operating Profit:

Plan of financial results for fiscal 2024: Premium tire business
21MBP

24MBP

6,000

Return to a “strong”
Bridgestone capable of adapting to change
変化に対応できる強いブリヂストンへ戻す

Currency
exchange

110 JPY
130 JPY

USD 5,500
EUR

132 JPY
138 JPY

141 JPY
152 JPY
over

Composition ratio ofpremium tire business
4,500
within global consolidation*

14.7%*Calculated from a simple
global total of revenues bybusiness segment

Premium tire business
Adj. Operating Profit
Margin [%]

3,500

3,000

Premium tire business
Revenue [B JPY]
Composition ratio ofpremium tire businesswithin global consolidation

40/50

135 JPY
149 JPY

14% level
425 B JPY level

Premium tire business
5,000
Adj. Operating Profit[B JPY]

4,000

Remaining issues/残課題・新たな課題
New issues

14.4%

419.1

（86%）

330.5

（80%）

13.7%

400.7

（82%）

（84%）

2021

2022

2023

2024 Plan

2,298.7

2,856.5

2,921.5

2,950.0 level

（67%）

（67%）

（64%）

（64%）

True next stage

17.0%

16.5%

 Plan Adj. operating profit margin ofover 14% for 2024:
16.0%

Accomplish turnaround from 2023 where issues were
exposed15.5%

 Reinforce focus on premium:

Launch Dan-Totsu products and expand sales of premium
tires – continue market share15.0%
increase and sales mix
improvement
Further reduce loss-making/unprofitablebusiness.
14.5%

Focus on value creation by fusion of “new premium”
14.0% for product design,
ENLITEN – our base technology
and BCMA – our base technology for R&D andmanufacturing that realizes
business cost reduction
13.5%(development & production cost, etc.)⇒ Steadily build foundation to expand value creation
13.0%
from 2025 onwards
24MBP

2026

final year

Adj. Operating Profit: Over520 B JPY level

Adj. Operating Profit Margin: Aim for

16% level

Plan of financial results for fiscal 2024 by business portfolio
Solutions business
Revenue

Adj. Operating
ProfitAdj. Operating
Profit Margin

6

B JPY
level

B JPY level% level

RetailRevenue*Sales revenue of retail tires included

1,370
85

41/50

103%
of PY

Near

120%

29%
Revenue portionof PY+0.5pp level
vs. PY

Retread1,020 B JPY level Revenue 155 B JPY level(103% of PY )Adj. Operating
Profit Margin

6% level(+0.9pp of PY )7%

Diversified products business

Revenue portion(101 % of PY )Adj. Operating
Profit Margin

17% level(Same level vs. PY )Revenue
Adj.
Operating Profit

2024
Revenue

Adj. Operating
Profit Margin

107%

15 B JPY level115%

4,430 B JPY
530 B JPY

Premium tire business

12.0%

Revenue

110% of PY+0.8pp vs. PY

64%
Revenue portion

Adj.
Operating Profit
Adj. Operating
Profit Margin

5% level

2,950
425
over

14

+0.6pp level
vs. PYB JPY level

B JPY level% level

of PY

of PY

Adj. Operating
Profit Margin

103% of PY

Adj.
Operating Profit

320 B JPY level

101%
of PY

106%
of PY

+0.3ppOverlevel vs. PY

Plan for 2024: Reinforce premium tire business- Launch Dan-Totsu products equipped with “New premium” ENLITEN
Japan PS
Launched Feb 2024


The first PS REP tire equipped with ENLITEN in Japan

Expansion of GREAT BALANCE
New REGNO FEELING – Sharpen edge in comfort and driving
performance, as well as contribute to sustainability
ComfortRealize high-quality quietness
throughout tire life

Driving
performance
High-quality riding experience
Comfortable handling

Sustainability
Use renewable & recycled materials
Reduce tire weight
Reduce environmental impact during
production

ECOPIA STEER/DRIVE

Europe TB
Launched Jan 2024

 The first BS brand TB REP tire equipped with ENLITEN in Europe‐Rebuild the TB business in Europe by launching Dan-Totsu products
 Support fleets with best-in-class fuel efficiency and long life as the latest generationof the long-haul tire line-up “ECOPIA”• Reduce rolling resistance: Provide EU label A-grade rolling resistance(8% reduction in steer, 12% reduction in drive)• Long-life: 40% higher mileage in steer axle, 6% higher mileage in drive axle
(In particular, vastly improved life by controlling irregular wear in steer axle)• Retreadability: Maintain durability and respond to retread/ Equipped with RFID

※ TÜV SÜD performance mark certification achieved for Ecopia ENLITEN. Individually applied for Ecopia Steer ENLITEN
and Ecopia Drive ENLITEN.

42/50

Plan for 2024: Reinforce the premium tire business – Reduce business cost
 Focus on reducing business cost (manufacturing cost + OPEX, etc.): Plan to reduce costs by a total 27 B JPY level– Establish a foundation to accelerate the generation of benefits from 2025 onwards. Continue reinforcing in 2025 & 2026.

Global procurement Value creation by building new partnerships with strategic partners (Win-Win) Strengthen global procurement and benefit from its scale merit

Global SCM logistics
transformation

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

BCMA Streamline development and supply chain by sharing modules
 Primary benefit: Conversion cost improvement through reduction of material & equipment changeover by product.
Streamline development by sharing of modules.
 Secondary benefit: Benefit from evolution of R&D and manufacturing by BCMA deployment such as improved capacity inproduction process and reduced workload at production sites- First, promote creation of primary benefit at 4 global model plants (Japan: Tochigi plant, Europe: Burgos plant in Spain, Americas: Jolietteplant in Canada, Asia: Nongkhae plant in Thailand). Take on the challenge to create secondary benefit at the plants in Japan, which have highR&D and manufacturing power.

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 thorough streamlined
production, also maximizing production capacity of existing equipment.

43/50

Plan for 2024: 2nd stage of restructuring & rebuilding Execute 2nd stage of restructuring & rebuilding in areas where remaining issues of 21MBP were exposed
Europe businessrebuilding

2023

Weak management foundation exposed with the economic downturn / Profit deterioration (especially retail, TB, and retread)

2024

Setting the entire European business as “Business unit under focused management”, start focusedmanagement: Rebuild business Introduce new talent & schemes to reinforce “business management” and “onsite (Genbutsu-Genba)” activities including dispatching talent from HQ Entire European business: Change the shape of business/ Further focus to improvement of profitability, not revenue
 Retail: ”Tackle past negative legacies squarely without delay” – Support from WEST U.S. retail team (began from Oct. 2023)
Deficit ⇒ Start rebuilding from 2024 / Reduce deficit ⇒ Become profitable from 2026
 PS: Focus on premium ー Further reduction of low rim diameter category / Rebuild wholesale sales structure linked with retail restructuring
Expand ENLITEN - “New premium in EV era” / Reinforce approach to prestige OEMs
 TB: Reduce unprofitable business & focus on premium/ Strengthen linkage with Webfleet Solutions
Deficit ⇒ Start rebuilding from 2024 / Reduce deficit ⇒ Become profitable from 2025
 Retread: Rebuild in limited areas / Improve profitability Deficit ⇒ Start rebuilding from 2024 / Reduce deficit ⇒ Become profitable from 2026
 Corporate brand: Leverage sustainable global motorsports

China businessrebuilding 2021: Consolidated TB manufacturing sites – Closed Huizhou plant ⇒ PS – Reinforce focus on premium

Thailand businessrebuilding 2023: Consolidated TB manufacturing sites – Ended tire production in Rangsit plant (including TB bias tires) 2024: Promote rebuilding business focusing on PS/ TB premium area

Return to
Dan-Totsu No.1 position

 2024: Rebuild REP business – restructure channel (Shift from wholesale sites to retail)
Further reduction of unprofitable business /Improve sales MIX of premium tires: Some categories for TB & LT

Maintain and reinforce
Dan-Totsu No.1 position

Japan channel
rebuilding*LT: Light truck tires

44/50

Plan for 2024: Establish new glocal management structure■ Bridgestone’s DNA “Genbutsu-Genba”: Focus on value creation based on-site – “Maximize effectiveness and efficiency”
EAST 16 areas
BSJP

BSDP

Japan tire
REP
OE

1
area 2
area

G-MICAarea

3

Solutions

area

4

area

5

Global MC

BSAPIC

Diversified Products

area

13

OR

area

15

Sports / Cycle

area

14

AC

area

16

Japan retail
RetailWEST 31 areas

Southeast Asia
ThailandIndonesia
Australia
New Zealand
India

Japan segment

BSAM
area

6

7
area 8area

N. America tire

AG

18
19
area 20
area 21
area 22
area 23

area

9
10

L. America tire

area

China

area

11

Taiwan

area

12

45/50

area
area

PS REP

area

TB OE
Canadaarea

Mexicoarea

Argentina
AG

38

WEST retailAG

Middle East/
N. Africa tire

24

37

Azuga
area

TB REP

25
26
area 27
area 28

Brazil

area

TB OE

area

Europe retread

area

area

45

41

Middle East &N. Africa tire

area

35

S. Africa tire
(Broad)

area

36

40

WEST retread
N. America retread

39

29

30
31
area 32
area 33
area 34

PS OE

area

area

47 areas

Europe tirearea

TB REP
area

17

PS REP

WFS

Global

area

PS OE

WEST BMS*AG: Agricultural tire

BSEMEA

area

42

N. Americaarea

Air spring
area

46

CFNA

43

area

44

Europearea

47

Capital investment, R&D expense, and strategic resource

46/50

Plan for 2024: Capital investment and R&D expense
2024: Ordinary investments

Capital investment

Slight increase vs. 2023 due to lease renewals for retail stores and warehouses and distribution
sites, in addition to the usual investments in maintenance and renewal of equipment at plants

Review of 2023

Lay foundation for future growth Executed strategic investments doubling resource from 2022 tolay foundation for premium enhancement, while thoroughly
selecting & injecting resource for ordinary investments at a level
equivalent to 2022

Total capital investments: Approx.

Strategic investments
6,000

420 B JPY

4,000

(Approx. 1.3 times of 2022)

Plan for 2024

2,000

Continue investments even in the continuing challenging
business environment

Total capital investment: Approx.

430 B JPY

(Slight increase vs. 2023)

R&D expense
R&D expense for product &manufacturing technology development:

120 B JPY level

Maintain a level of slightly
less than 3% of revenue
47/50

420 B JPY

Ordinary investments

0
FX

USD
EUR

262
205.7

132% of 2022

317.1
222.8

56.2

94.3

110 JPY
130 JPY

132 JPY
138 JPY

2021

2022

excl. currency
exchange impact
126% of 2022

Approx.

430 B JPY

103% of 2023
excl. currency
exchange impact
106% of 2023

253.6

Approx.

166.4

Approx.

2023

2024 plan

141 JPY
152 JPY

269
165

135 JPY
149 JPY

122 B JPY (2.8％ of revenue)
2024: Approx. 124 B JPY (2.8％ of revenue)2023:

In addition, inject approx. 7 B JPY in R&D for solutions business – new store format developmentin the U.S. and establishment of the mobility tech business (WFS & AZUGA, retread development,
tire monitoring sensor development)

Plan for 2024: Strategic resource Summary of 2023: Even in the challenging business environment, thoroughly selected & invested approx. 250 B JPY in strategic growthinvestments mainly to reinforce production of premium as a foundation for future growth namely premium enhancement

 Plan for 2024: Thoroughly select and inject strategic expenses. Continue reinforcing strategic investments in the premium tire businesswhere returns are solid.
ー Investments + expenses total: Approx. 210 B JPY/ 85% of 2023
However, enhance throughout 24MBP centered around the premium tire business
Strategic resource amount (B JPY)
Expenses, etc

2,500

135.6

1,000
500
0
Currency USD
exchange EUR

48/50

177% of 2022

B JPY

excl. currency
exchange impact
168% of 2022

3,000

1,500

Approx.

B JPY

Investments

2,000

247.2

79.4
56.2

139.5
45.2
94.3

80.8

166.4

210

85% of 2023
Excl. currency
exchange impact
86% of 2023
Approx.

45

Approx.

165

2021

2022

2023

2024 plan

110 JPY
130 JPY

132 JPY
138 JPY

141 JPY
152 JPY

135 JPY
149 JPY

Strategic resource allocation

2023
IT infrastructure
48.8 B JPY (20%)
Diversified products/ Exploratory,
foundations, etc.

Plan for 2024
Premium tires
100.1 B JPY(41%)

39.9 B JPY(16%)

IT infrastructure
Approx. 41 B JPY (20%)
Diversified products/ Exploratory,
Foundation
etc.

Premium tires
Approx.

103 B JPY

(49%)

Approx.

28 B JPY(13%)
Mobility tech, etc:
Approx. 6 B JPY(3%)

Mobility tech, etc.:
31.7 B JPY(13%)
Retread: 4.6 B JPY (2%)

Solutions

Retail & service:22.1 B JPY (9%)

58.4 B JPY (24%)

Retread:Approx.11 B JPY(5%)
Retail & service:
Approx. 20 B JPY(10%)

Solutions
Approx. 38 B JPY(18%)

Positioning of “Plan for 2024” in the 24MBP
2021

21MBP

2023

Return to a “strong” Bridgestone
capable of adapting to change Rebuild earning power Complete laying thefoundation for premium
enhancement

24MBP

2024

2025 & 2026

True next stage

変化に対応できる強いブリヂストンへ戻す
Remaining issues / New issues
Top priority for 2024

 Reinforce business quality– Improve management quality and working & business quality⇒ Stay attentive and lean in the challenging business environment

Especially in 1Q, expect challenging environment mainly in N. America & Europe
reflecting TB REP demand decline - a remaining issue from 2023

 Execute the 2nd stage of restructuring & rebuilding– Especially for Europe (retail, TB, retread, etc.), China, Thailand, and Japan REP channel rebuilding

Build foundation toward the “true next stage” in 2025 & 2026
 Further focus on the premium tire business Reinforce
earning power• Launch Dan-Totsu products and expand sales of premium tires– continue market share increase and sales mix improvement• Further reduction of loss-making/unprofitable business• Value creation by fusion of “New premium” ENLITEN and BCMA: ENLITEN expansion

 Business cost reduction• Global procurement, global SCM logistics transformation, BCMA, Green & Smart, steady on-site productivity
improvements

Tackle past negative legacies squarely
without delay
49/50

Focus on execution and deliveringresults for immediate issues

Lay foundation for future growthCommunication plan

March 1, 2024 (Fri)Mid Term Business Plan (2024-2026)

50/50

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

51/50