Mid Term Business Plan (2021-2023) Progress Update
3rd Quarter, 2021

November 11, 2021
Member of the Board
Global CEO and Representative Executive Officer

Shu Ishibashi

Mid Term Business Plan (2021-2023) Communications
February 16, 2021 (Tue)■ Mid Term Business Plan (2021-2023) based on
Mid-Long Term Business Strategy Framework■ Looking toward 2030
May 17, 2021 (Mon)■ Mid Term Business Plan (2021-2023) Progress Update 1

November 11, 2021 (Thu)■ Mid Term Business Plan (2021-2023) Progress Update 3- Rebuild earning power:
Business portfolio & manufacturing footprint restructuring
Expense and cost structure reformation
Premium business strategy- Strategic growth investment: Expansion of solutions business- Exploratory business: New area – Guayule business- Core competencies: Development of digital talent- Bridgestone Design

August 10, 2021 (Tue)■ Mid Term Business Plan (2021-2023) Progress Update 2“Mid Term Business Plan (2021-2023) Progress Update” planned in February 2022
2/27

3/27

Bridgestone 3.0 Journey

Bridgestone 3.0 Business Scenario: Mid Term Business Plan (2021-2023) “Aggressive approach” & “Challenge”
2020
COVID-19 Impact

2021

Gradual recovery
Crisis management

Stage

2022
November

RecoverySustainability at the coreRebuild earning power
Strategic growth investment■ Tire businessCore business*Dan-Totsu: Clear and absolute leader

Strategic growth investment

Diversified products
business
Diver

Enablers
for execution
Core Competencies

4/27

Tires

Expansion: Accelerate global expansion of solutions
Enhance retail & service business / Expand Tire-centric solutions & Mobility solutions■ Start in areas where Bridgestone can leverage its core competencies:
Exploratory businessTransformed“strong” Bridgestone

Expense and cost structure reformation: Expense structure reformation (fixed cost, etc.),
business portfolio & manufacturing footprint restructuring, resource reallocation
Reinforce premium business strategy (EtoE): Reinforce Dan-Totsu* product strategy and sales in “premium” Rebuild earning power■ Solutions business
Growth business

2023

Strategic growth investment

Toward commercialization of recycle business and soft-robotics businessNew area of exploration – Guayule business■ Sharply focus on areas where Bridgestone’s core competencies can be leveraged■ Reinforce foundation for financial strategy: Reinforce management structure and portfolio management■ B-HRX: Reinforce development of digital talent■ Bridgestone Design

Rebuild earning power
Strategic growth investment

Solutions

Bridgestone 3.0 Journey

Mid Term Business Plan(2021-2023) Progress in 3Q 2021: “Aggressive approach” & “Challenge”■ Thoroughly rebuild earning power and execute premium business strategy

Core
Business

Strategic Focus

Execution & Results

Rebuilding earning power- Business portfolio & manufacturing
footprint restructuring• Restructuring across all businesses (tires / diversified products / material manufacturing)from mid-long term perspective

Expense & cost structure reformation
Premium Business Strategy (EtoE)• Thoroughly improve the quality of business- Thoroughly improve sales mix (increase HRD*1 sales ratio, expand major brands)- Respond to rising raw material price, reinforce strategic price management (incl. price increase)- Focus on global procurement improvement project for raw material cost & OPEX reduction:
Selection of 2nd brand raw materials, switch to more reasonable raw material while maintaining
quality, optimization of logistics routes, reduction of consumable cost

- Dan-Totsu product strategy- As of November 2021: Restructuring of 23 locations already in place• Flexible agile management “Transform change to opportunity”- Cover reduction of OE*2 tire sales resulting from semiconductor shortages through solid
growth of REP*3 tire sales
Support REP tire sales growth with globally optimized tire sourcing strategy• Accelerate planning for building a new production/sourcing structure from global optimization
perspective based on commonality & modularity• Reinforce & expand ENLITEN technology taking into account sustainability & the evolution ofmobility*1 HRD: High Rim Diameter, *2 OE: Original Equipment, *3 REP: Replacement

5/27

Bridgestone 3.0 Journey

Mid Term Business Plan(2021-2023) Progress in 3Q 2021: “Aggressive approach” & “Challenge”■ Globally expand solutions business and accelerate exploratory business

Growthbusiness

Strategic Focus

Execution & Results

Accelerate global expansion ofsolutions• U.S.:‐Enhance retail & service business‐Reinforce approach based on sustainability
Strategic growth investment

Exploratory
business

Enablers
for execution

Core competencies

6/27- Completion of the acquisition of digital fleet solutions provider Azuga (Sep. 2021)- Strategic investment in mobile vehicle services and technology company Wrench (Sep. 2021)- Partnership agreement with electric & autonomous freight leader Einride,
for tire supply & logistics services (Aug. 2021)• Europe: ‐Long term partnership agreement with EVBox Group to expand Europe’s EV charging
infrastructure (Sep. 2021)‐Collaboration with HERE, for digital data services toward a sustainable future of mobility (Oct. 2021)

Recycle business, soft-robotics business,guayule business• Defined guayule as a new exploratory business, with Bridgestone Americas as leader

Reinforce foundation for
financial strategy• Reinforce portfolio management led by extended Global CFO function (established Sep. 1)• Recycle & soft-robotics business: Accelerate exploring technology and business model• Reinforce activities to emphasize ROIC within global group

Realize Sustainability Business
Framework• Amplify communication activities around sustainability

B-HRX／DX
Innovation for solutions• Separate core / growth / exploratory businesses organizations step by step, maintain lean organizations• Reinforce development of digital talent to enable DX

Bridgestone Design• Bridgestone Design in the “third foundation” (Bridgestone 3.0)

Rebuild earning power

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Bridgestone 3.0 Journey

Rebuild earning power: Manufacturing footprint & business portfolio restructuring■ Execute manufacturing footprint & business portfolio restructuring over a mid-long term
■長期的なスパンで生産拠点再編・事業再編を実行

Global manufacturing footprint restructuring (incl. tire, diversified products & material manufacturing sites) planned
中期事業計画期間（2021-2023年）中、グローバル生産拠点再編（含む内製・多角化事業拠点）
in the Mid Term Business Plan (2021-2023): Approx. 40% reduction by 2023 from approx. 160 locations in 2019
Diversified Products Business

Withdrawal from conveyor belt businessRestructuring of production items (Iwata plant)
Automotive seat pad plant (Ageo plant)
Diversified Products Business
Bridgestone Cycle Co., Ltd. (Kisai Plant)
Firestone Building Products Company, LLC

Tire Business

Bethune plant, France(U.S. Building products business)(15 sites – 13 in the U.S., 2 in other regions)Internal Manufacturing

Diversified Products Business

Bridgestone(Huizhou) Synthetic
Rubber Co., Ltd

Bridgestone Everlight (Shanghai) Co., Ltd(Polyurethane foam products)

Diversified Products Business

Bridgestone Automotive
Products de Mexico S.A. de C.V.

(Synthetic rubber)Diversified Products Business(Polyurethane for automobiles)

PT Bridgestone Astra Indonesia(Automotive anti-vibration rubber)

Tire Business

Port Elizabeth plant, South Africa

8/27

Restructuring of 23 locations in place,continue consideration

Bridgestone 3.0 Journey

Rebuild earning power: Diversified products & material manufacturing– manufacturing footprint & business portfolio restructuring■ Restructuring of diversified products & material manufacturing business– sharply focus on areas where core competencies can be leveraged, continue consideration over a mid-long term
Chemical & Industrial Products Business‐ Business portfolio restructuring:‐Withdrawal from conveyor belt business(Nov. 2021)‐ Manufacturing footprint restructuring:‐Restructuring of production items at Iwata plant (Aug. 2021)‐Consolidation of automotive seat pad plants– closure of Ageo plant (Oct. 2021)

U.S. Diversified Products Business‐ Business portfolio restructuring:
Divestment of building products business in the U.S.
(Jan. 2021)
Spots & cycles Business‐Manufacturing footprint restructuring:
Closure of Bridgestone Cycle Kisai plant (Mar. 2021)‐Bridgestone Everlight (Shanghai) Co., Ltd (Mar. 2021)– polyurethane foam products‐Bridgestone Automotive Products de Mexico S.A. de C.V. (Mar. 2021)– polyurethane for automobiles‐PT Bridgestone Astra Indonesia (Mar. 2021)– automotive anti-vibration rubber

9/27

Material Manufacturing‐ Business portfolio restructuring:
Divestment of synthetic rubber business in China(Jun. 2021)

Core business (tire business)

10/27

Bridgestone 3.0 JourneyCore business: Premium business strategy
Minimize impact of OE tire sales reduction by switching supply/sales to REP tire through flexible agile management
Continue thorough improvement of the quality of business
Marketing
商品戦略

R&D
製品開発

Procurement
調達

Production
生産計画
Plan

Manufacturing
製造■ Promotion of flexible agile management
Respond to changes in business environment:
・ Inflation in raw material,
ocean freight, and energy
・ Difficulty securing labor in
N. America, rise in labor costs

Accelerate global procurement project,
Minimize impact to revenue/profit throughimprovement of price and sales mix

Logistics
物流

Sales
販売

Minimize impact of OE tire sales reduction due tosemiconductor shortages :・ Maximize supply & sales of REP tires
・ Especially manage sales increase of high value added products with
with high OE ratio in REP such as PS tires 18” and above,
PS HRD tires 18” and above
REP vs. OE sales ratio (2021 Q1~Q3)

Flexible agile management of supply chain:
Short term: Maximize production capacity in each region (local production for local sales) +supplement from Japanese & Asian plants by increasing headcount⇒Respond to demand recovery in U.S. & Europe, “aggressive approach”
Mid-long term: Replace production equipment from PS*1 LRD*2 to PS HRD
Reinforce the production capacity for high value added products

Accelerate planning to build a new production/sourcing structure
based on global optimization“Transform change to opportunity”“Aggressive approach” & “Challenge”
11/27

リデュース
3R
リユース
リサイクル

Customer
顧客使用Use(％: % of total sales units)

OE 56％ 56％

REP

52％

52％

47％

47％

44％

48％

53％

Q1
Q1

Q2
Q2

Q3
Q3

*1 PS: Passenger car tire, *2 LRD: Low Rim Diameter

Bridgestone 3.0 JourneyCore business: “Dan-Totsu Products” taking into account sustainability & the evolution of mobility■ Expand the innovative tire technology ENLITEN to respond to the accelerated shift toward EVs/FCVs
Bridgestone’s approach based on sustainability
Innovative tire technology for next generation eco-friendly products
Roll out since 2010

1st generation
Eco-friendly product⇒ 80% of all products (as of 2021)

Strategy fortechnology
expansion:

Innovative light weight: -20%
⇒Reduce raw materials used by approx. 2kg, improve resource productivity
Reduce rolling resistance while ensuring driving & wear performance: approx. -30%
⇒ Prolong EV driving distance, improve fuel efficiency for gas vehicles, reduce CO2 emissions
Linkage with commonality & modularity= Improved efficiency of development & production processes

Expand among PS and LT*1
2021

2023-24

Expand from OE fitment in Europe
Full-scale expansion in both OE & REP

vs. conventional product：225/40R18

Expand to TB*2
Planned to equip approx. 70% of REP
tires globally by 2030

Targeted % of fitment on PS REP tire (in 2024)(Europe: Approx. 70% / N.America: Approx. 70% /Japan: Approx. 10% / China Approx. 10%)

2030
12/27

90%+ of REP tires to be equipped with ENLITEN technology globally*1 LT=Light Truck tires*2 TB=Truck & Bus tires

Bridgestone 3.0 JourneyCore business: Dan-Totsu products taking into account sustainability & the evolution of mobility■ Contribute to the realization of carbon neutral mobility – Support the adoption of EVs with “Dan-Totsu products” (Europe) –‐50% of the top 10* most sold EVs in Europe are fittedwith Bridgestone tires*Top 10: VW iD3, VW iD4, TESLA MODEL3, RENAULT ZOE,PEUGEOT E-208, MERCEDES EQB, FIAT 500,NISSAN LEAF, MERCEDES EQC, PEUGEOT E-2008*BS estimate of Jan-Jul sales- Investing over 30% of Bridgestone Europe NV/SA’s
R&D resources in tires for EVs – to expand &reinforce ENLITEN technology

Targeted % of REP tires equipped with ENLITEN technology in Europe

2023: Approx. 10％

2024: Approx. 70％

2030: 90％+

Expand ENITEN technology globally, starting from Europe.
Support the realization of carbon neutral mobility from the ground up.
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Growth business (solutions business)

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Bridgestone 3.0 Journey

Growth business: Accelerate global expansion of solutions■ Expansion progress of major solutions
Bridgestone’s major solutions business

Retail & service
business

EuropeJapan

Americas

Subscription (Package with tire + maintenance + service )Mobile van service
Retail service (tire centric services + maintenance)
Credit Card

Retail financial services
Tire-centric
solutions

Mobility
solutions

Retread solutions (tire + retread + maintenance)

TPP*1

Mining solutions (expand to mines in AUS & Chile with Japan as CoE*2)―

41 mines―

Aviation solutions (expand to airlines globally with Japan as CoE)―

SUP/CPL*3―

Fleet solutions
Digital data service*1 TPP：Total Package Plan, *2 CoE：Center of Excellence, *3 SUP: Single Unit Price / CPL: Cost Per Landing

15/27

Bridgestone 3.0 Journey

Growth business: Enhancement of retail & service business – U.S. –■ Reinforce value proposition during the “use” of tires – UX:
Provide safety & peace of mind to customers through the enhancement of our solutions network■ Strategic investment in Wrench, a mobile vehicle services and technology company (in September)
Reinforce solutions network & enhance services in the U.S. where we possess a “Dan-Totsu” company-owned retail networkof 2,200+ stores

Provide tire & vehicle maintenancecustomized to each customer
Enhance “concierge”-style solutions
Subscription model

Provide safety & peace of mind through tire &maintenance at a monthly fee

Retail network

U.S. (company-owned): 2,200+ stores
Mobility solutions

Vehicle data
Tire data
Provide a better way to “use”

16/27

Mobile van service

Wrench (U.S.): Approx. 150 mechanics
Firestone Direct (U.S.): 60+ vans
Lube Mobile (AUS): 200+ vans

Bridgestone 3.0 Journey

Growth business: Enhancement of retail & service business – Europe –■ Enhance solutions network toward the realization of carbon neutral mobility■ Long term partnership agreement with Europe’s leading provider of EV charging solutions EVBox
to expand Europe’s EV charging infrastructure by leveraging Bridgestone retail network (owned: Approx. 500 stores, franchise: Approx. around 600 stores etc. )(in September)
Enhance EV charging infrastructure
Install charging ports across Bridgestone’s European retail& service network: Approx. 3,500 ports＋
Access to public charging ports provided by EVBox Group:
Approx. 130,000 ports
Smart access to ports using a common dedicated card/mobile app

Support the realization of carbon neutral mobility by contributing to the adoption of EVs

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Bridgestone 3.0 Journey

Growth business: Enhancement of mobility solutions in Europe – digital data service –■ Collaboration with leading location data and technology platform provider HERE
– Offer mobility data thorough the HERE Marketplace (from October)*Customers / partners
Smart cities

FleetsCar sharing

Insurance &other services*Adopts multiple layers and methods to anonymize & aggregate
data, subject to GDPR guidelines related to data protection

Contribute to the evolution ofmobility solutions

Purchase data

HERE Marketplace (digital platform)
HERE and its partners exchange data & services
Offer data (sell) / Monetize (monthly subscription)

Vehicle data owned
by Webfleet Solutions
Vehicle type / Driving route /Fuel consumption status /Battery information & status etc.

18/27

•
•

Expand customer baseContribute to safe vehicle operations,increased efficiency of maintenance,and reduction of CO2 emissions<Create new value>• Enable reaching a larger number ofcustomers/partners:⇒ Create opportunities for new
solutions business based on “digital”⇒ Accelerate innovation

Exploratory business

19/27

Bridgestone 3.0 Journey

Exploratory business: Progress update

Recycle business

Soft-robotics business

Guayule business

Tire to Rubber & Tire to Raw Material

Explore Business model“Plant to Produce Rubber” in arid zones

Explore technology
From tire to oil and chemical products

•

•

20/27

Expand use of recycled raw material
Commercialization of tires using recovered
carbon black/powder rubber (in 2019)- Improve material circularity
Accelerate co-creation & innovation toward
establishment of recycling technology
ensuring high-quality• Robot arm:
Light weight & high output armthat can work in narrow spaces• Robot hand:
Hand that can grab various objects“just right”

•

•

•

Explore toward commercialization
Evergreen shrub that originated in thearid zone from the southwestern part of
the U.S. to northern Mexico, containing
rubber constituents⇒Rubber can be extracted & used asa source of natural rubber
Allows the diversification of natural
rubber sources
Reinforce contribution to sustainability

Bridgestone 3.0 Journey

Exploratory business: New exploratory area – Guayule business■ Reinforce efforts toward sustainable raw material procurement, reducing impact to the environment, and biodiversity
Fundamental research started in 2012, aim for commercialization in 2026 through accelerated
open innovation & co-creation in biotechnology
R&D activities history
2012: Official launch of R&D activities
2013: Establishment of guayule R&D farmin Arizona (U.S.)
2014: Establishment of the Biorubber Process
Research Center in Arizona (U.S.)
2015: Completion of first tires made from guayule-derived
natural rubber
2015-2018: Efforts toward establishing guayule
process technology
2018: Selected as recipient of research grant from
USDA *1 National Institute for Food and Agriculture

Guayule farm in Arizona (U.S.)

Contribute to the sustainable productionof natural rubber
Diversification of natural rubber sources
currently concentrated in tropical regions:- Enhancement & diversification of renewable materials- Reduce risk of natural rubber supply & price soaring

Growable in arid zones with little water:：- Expand new green land, contribute toincreased CO2 absorption*1: U.S. Department of Agriculture

Co-create with partners and build an ecosystem.
Inject resources globally and drive as an exploratory business with Bridgestone Americas taking initiative
Co-creation to date

21/27

with Versalis: Cooperation toward commercialization (U.S.)
with NRGene: Advanced guayule research (U.S. & Japan)
with Kirin Holdings: Development of new technology for improving guayule-derived natural rubber productivity (Japan)

Core competencies

22/27

Bridgestone 3.0 Journey

Enablers for execution – Drive DX■ Reinforce high-level digital talent to accelerate Bridgestone’s DX:
Reinforce development through external cooperation + Synergy with new teammates through M&A■ Launch of digital talent development project:
Establishment of“Bridgestone x Tohoku University Co-creation Lab”

■ Reinforce development of high-level digital talentthrough cooperation with new teammates:
Addition of approx. 300 digital talent from Azuga Holdings

Plan to develop approx. 40 high-level digital talent during
project duration (2021-2024)

High-level digital talent intermediate-level and above:
2021: Approx. 1,200 people (+300)→ 2023: Approx. 1,600 people (+400)
Advanced

Full DS*:

AI / Algorithm Expert

Intermediate・ Participation of young
researchers
・ Coaching backed byadvanced specialized
technology & expertise

・Dispatchment of engineers
・Theme-setting
・Offering of data

Associate DS: Solution Field Engineer
Solve society & customer’s problems
leveraging digital capabilities

Beginner

Assistant DS:
Improve data literacy among the company*DS: Data Scientist

23/27

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Bridgestone 3.0 Journey

Bridgestone Design■ Design at Bridgestone
Design that supported our “second foundation”: Introduction of new CI (1984)
With “Always moving toward the new Bridgestone” as the credo,transformed not only visual design, but the entire corporate culture
with globalization in mind

Foundation■ Bridgestone Design in our “third foundation” (Bridgestone 3.0): “Circle Aesthetics”
Affinity with “circle” and “circulation” in both business & design
Accelerate innovation in design:
3 pillars of innovation in the“third foundation” (Bridgestone 3.0)

Technology

Business modelSpecial exhibition

Design“Circle Aesthetics”: special exhibition at
Bridgestone Cross Point

Introducing the functional beauty of tires throughvarious graphics[Period] Planned Oct 4th 2021 (Mon) ~ Dec 17th 2021 (Fri)25/27

Corporate font
“Bridgestone Type”

Adoption of font that embodies
Bridgestone 3.0, a sustainable
solutions company

Pursuing “Circle aesthetics”

Passenger car tires:
TURANZA ECO with ENLITENECOPIA EP500 with ologic
ECOPIA with ologic

26/27

Motorcycle tire:
RACING BATTLAX E08Z

Agricultural tire:
VT-TRACTOR

2021

2nd Year of Bridgestone 3.0, the “Third Foundation”

27/27

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

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