Mid Term Business Plan (2024-2026)—24MBP
Value Creation Process—24MBP

Mission: Serving Society
Vision: 2050 Bridgestone continues to provide social value
Mid Term Business Plan
Input
Total equity (as of the end of 2023)

3,405.4 B JPY

Credit ratings (as of the end of 2023)
Moody’s
Financial capital

A2

S&P

A

Create good business quality “Passion for Excellence”
Create good tires

Create good

P 44-

Cumulative operating cash flows(2024-26 plan)

Approx.

2,200 B JPY

New & true glocal portfolio management

47 areas

Capital expenditure (2024-26 plan)
Manufactured capital

Approx.

1,400 B JPY

WEST（31 areas）

R&D expenses (2024-26 plan)Intellectual capital

Approx.

412 B JPY

Enhance Intellectual property strategy

Growthbusiness

125,199Corebusiness

Operating in more thanSocial and relationshipcapital

150 countries and regions(as of the end of 2023)

EAST

Solutions business
Mobility Solutions
Tire-centric
Solutions（16 areas）

Mobility techbusiness（Build as
strategic business）

Retail & Service Solutions Network

Number of employees (as of the end of 2023)
Human capital

P 31-

Premium tire business

Diversiﬁed
products
business

Real xTotal energy consumption (2023)

40,989 thousand GJ
69%

Tires and solutions

Renewable energy(Electricity) ratio

Amount of raw materials used (2023)
Natural capital

3,969 thousand tonnes

Biodiversity &nature conservation area (2023)
Bridgestone’s
direct contribution

1,544 ha保New core competencies
Bridgestone DNA
Fundamentals

New global footprint

Ultimate customization

Focus on quality

Respect for being on-site

Sustainability

Compliance, Human rights

DE＆I

Social issues and momentum of transformation / Changes in24

with Superior Quality
and customer value as a sustainable solutions company(2024-2026) −24MBP−
Output(Management, Working & business quality improvement)（24MBP 2026 plan）

P 36-

RevenueCreate new businesssowing good seeds for the futurebusiness
P 52-

P 62-

留

JPY
640 Blevel

Adj. operating
profit margin

13% level

ROE

11% level

ROIC

10% level

Dividend per share

Amplify trust

Talent creativity

Amplify valueof Dan-Totsu products(Adj. operating profit ÷ talent investment)

130 level(INDEX: 2019 = 100)

50

P 74-

More than% reduction
in CO2 emissions (Scope 1, 2) from 2011 level

39

Digital% rate of materials using recycledOver
and renewable resources“carry life”
Technology & Innovation

BCP, Risk management

Enhance the initiatives
towards the realization of nature positive

New ＆ true glocal portfolio management

Being attentive and supportiveof customer problems
Governance

250 JPY level

Min.

Build foundation
toward the sustainable growth stage（Interaction with empathy to co-creation）

New brand power

JPY
4,800 Blevel

Adjusted
operating profit

Bridgestone
E8 Commitment
to Our Future

Amplify data value

P 30-

Enhance talent creativity

Challenging spirit

Create new DNA

2050

Carbon neutrality*
100% sustainable materials

Peace of mind, Safety* Achieving carbon neutrality for Scope 1,2
and contributing toward carbon neutrality in Scope 3

environment surrounding Bridgestone and risks and opportunities

P 27-

Bridgestone 3.0 Journey 2024 Integrated Report25Mid Term Business Plan (2024-2026)—24MBP

Positioning of the 24MBP with the 2030 Long Term Strategic Aspiration as its
Roadmap and the North Star
In August 2022, Bridgestone announced the “2030 Long

pursue improving management and working & business

Term Strategic Aspiration” as a roadmap toward our 100th

quality, placing a top priority. First, within 2024, we will

anniversary in 2031. It will guide us through an era whensteadily work on “returning to a strong Bridgestone that“change is becoming commonplace” with unpredictable

can respond to change” to have a clear path to tackle

changes including the accelerated evolution of mobility,

and resolve the remaining issues of the 21MBP and thetransformation of the industry, and the emergence of a

new issues from 2023. Based on this, we will then movenew global order. It will also help us continue supporting

forward to the “true next stage” in 2025-2026.

the mobility of people and goods with safety andAs the key initiatives, we will strengthen new & true

peace of mind. We aim to become a resilient “excellent”

glocal portfolio management that implements strategies

Bridgestone that transforms change into opportunity,

according to the characteristics of each business andunperturbed by continuous change while remaining robust

region while ensuring consistency with global strategies,

and flexible like rubber.

as well as thoroughly strengthen earning power.

The 24MBP was formulated with this 2030 Long Term

Specifically, we will focus more on value creation in

Strategic Aspiration as the North Star in light of theaccordance with four business shaping scenarios; “createchanges in the business environment.

good business quality”, “create good tires”, “create

The three axes of management will not change:

good business”, and “create new business sowing good“tackle past negative legacies without delay”, “focus on

seeds for future”. In addition, we will also start building a

execution and delivering results for immediate issues”,

sustainable premium brand.

and “lay foundation for future growth”. We will have
“Passion for Excellence” as its management approach to

21MBP”Passion for Excellence”

90th anniversary of founding
2021

2023
Return to a strong Bridgestone
capable of adapting to change

2030 Long Term Strategic Aspiration

24MBP

27MBP

95th anniversary of founding
2024

2025

Remaining issues& new issues

100th anniversary of founding

2026

2031
Become a resilient“excellent”
Bridgestone

True next stage

Strengthen new & true glocal portfolio management(by global, business, and area)
Reinforce earning power
Business shaping scenario – Further focus on value creation
Start building sustainable premium brand

Tackle past negative legacies
squarely without delay

26

Focus on execution and delivering resultsfor immediate issues

Lay foundation for future growthChanges in Business Environment and Strategic Direction—Transforming Change into Opportunity
In formulating 24MBP, Bridgestone analyzed changes in thesustainability year by year, we will build the foundation tobusiness environment and their impacts on us comparedcreate sustainability value along with responding to suchto the 2030 Long Term Strategic Aspiration announced

demand. The structural changes in the tire industry are

in August 2022 from the perspective of both risks andalso continuing, leading to more prominent shifts in market

opportunities with a calm and rational approach.

presence of tire companies within the tire industry and gaps

First, regarding geopolitics, as various changes arein earning power.

continuing globally, we will strengthen our response to

In general, change is becoming even more intense

global procurement, global supply chain, and businessand commonplace. We recognize that evolving into arisks. In mobility & technology, we expect the EV adoption“strong Bridgestone capable of adapting to changes” thatspeed softens, however the mid-long term adoption andtransforms this change to opportunity and reinforcing

expansion trend does not change. With this trend, we

its earning power to respond cost increase with changes

will leverage new opportunities by “customizing” diversein business environment are essential to continuously

performance for diverse mobility with an axis of “newincrease its corporate value.

premium” ENLITEN. With an increase in social demand forBusiness environment“Change becomes commonplace”“Transform change
to opportunity”

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

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

24MBP
Impact on Bridgestone

U.S.: Unpredictable political trends &economic outlook
Geopolitics

Mobility &Technology• Increased volatility in global business

Understand risks related to conflicts andpolitical trends:
Russia – Ukraine, Middle East,
China – Taiwan, etc.

• Impact on supply chain and business cost increase

Mobility-related trends:
EV adoption speed softens,
but the mid-long term adoption &expansion trend doesn’t change• Pursue “Ultimate Customization” to respond diverse performancefor diverse mobility• Strengthen approach to premium & prestige OEMs and premium EVs• Continue to evolve DX across value chain(From manufacturing and R&D to solutions)

Dramatic improvement of AI capabilities
etc.

Sustainability

Increasing and diversifying social demand
for sustainability
Increasing demand to response nature positive

Presence change within the tire industry
Tire industry
structure

Possibility of a restructuring of
the tire industry• Manage cost increases to respond to sustainability• Strengthen initiatives to respond to sustainability across the value chain• Reinforce earning power
Create good business quality / Create good tires /Create good business /Create new business sowing good seeds for the future

Bridgestone 3.0 Journey 2024 Integrated Report27Mid Term Business Plan (2024-2026)—24MBP

Response to Global Management Risk
Reinforce Structure to Cope with Global
Management Risks to Remain Resilient amidst“Change Becoming Commonplace”—Improve Risk Sensitivity

Geopolitical Risk
The Bridgestone Group continuously monitors international
tensions, political and economic situations, regulatory trends,
and other factors that may disrupt business operations

In this environment where “change becomes commonplace,”and impact employees and business partners. We

we are strengthening our global and regional risk

promote analyzing business impact when risks materialize,

management structure, increasing sensitivity, andand examining measures to minimize that impact, andpromoting proactive risk response in order to improve ourestablishing execution structure. In addition to ensuring

ability to identify, evaluate, mitigate or reduce, and control

employee safety, protecting assets, providing customer

highly important Group-wide risks for building strong

support, and protecting our corporate and brand image, webusiness quality.

are proceeding with specific initiatives such as considering

Particularly, in global management risks, we are

and securing alternative sourcing of raw materials.

strengthening our response by establishing the Global
Management Risk Committee (GMRC) consisting ofCyber Incident

each regional or business top management. The GMRC
identifies and evaluates the most critical risks, formulates

In response to the cyber incident at Bridgestone’s U.S.

appropriate response strategies, and thereby verifies theirsubsidiary in 2022, Bridgestone implemented emergency

effectiveness. Based on this, annual risk exercises aremeasures in each region. Moreover, for continued

conducted, aiming to ensure alignment of such response

reinforcement of our response capabilities, we establishedstrategies with business strategies.

a global cyber security response team and are promoting

The GMRC conducts wide-ranging discussions ofassessment is being conducted to drive standardization ofproject teams composed of the top managements ofcountermeasures globally.

related organizations and members with expertise for threepriority management items.

28

fundamental countermeasures. Started in 2023, global

management risk and has at present established global

TRWP: Tire & Road Wear Particles / 6PPD

<6PPD>
6PPD is an antioxidant and antiozonant widely used in<TRWP>

the tire industry. While driving industry-wide initiatives,

TRWP are the result of friction between the tire and theBridgestone is working to develop alternatives with theroad surface which is essential to secure a safe comfortablebasic premises that tire safety is ensured.

journey with peace of mind, consisting of a mixture of tread(tire surface) and road pavement materials.
We will continue reinforcing our structure to cope with

Bridgestone’s Approach

global management risks unaffected by change and• A s a leading company, Bridgestone is initiating

improving risk sensitivity.

investigation on the physical and chemical
characteristics of TRWP and their impact through theTire Industry Project (TIP) under the World BusinessCouncil for Sustainable Development (WBSCD).
• We actively participate in initiatives in industry
organizations, leading to develop globally harmonized
test methods as international standards (ISO standards).
Through promoting initiatives to define common
standards for all industry professionals, we aim to
reduce the number of tires on the market that do notmeet the common standards and then to mitigate theemission of TRWP.
• A s Bridgestone’s unique initiatives, we are pursuingacross the value chains from “produce and sell” to “use”.

Technology Development
We are continuing to promote R&D investment
in sustainable technology including material
development to improve wear resistance
performance, etc.

Products
With ENLITEN, a base technology for product design
which pursues “ultimate customization” as an axe,
we are expanding products which provide long-life
by improving wear resistance performance on top of
improving diverse performance desired of tires.
In addition, we are also focusing on improving wear
resistance performance for EV optimized tires, while
promoting with a view to Euro 7 (Next environmental
regulation for motor vehicles) as well.

Solutions
By proposing optimal operations and driving route(shortest route, avoidance of traffic congestion,and reduction of Stop & Go, etc.) for each customer
through real x digital, we will offer solutions that“enable customers to use tires safer, longer, better andmore efficiently” through building the mobility techbusiness.

Bridgestone 3.0 Journey 2024 Integrated Report29Mid Term Business Plan (2024-2026)—24MBP

Summary of Global Management Indicators
In the 24MBP, which is the halfway point toward the

management indicator, is planned to achieve 10% withrealization of the 2030 Long Term Strategic Aspiration,certainty, thorough reinforcement of earning power being

Bridgestone strives to improve each of global

conscious of capital cost.

management indicators, which has set in terms of bothContinuously improving dividend per share, shareholder

financial indicators and social value and non-financial

returns are expected to be at the level of 250 JPY in 2026

indicators.

at minimum.

In order to improve financial indicators, we will focus

will continue to reduce CO2 emissions while expanding

power. Revenue is planned to be at the level of 4,800 B

production and sales volume, and steadily improve

JPY in 2026 which is approximately 110% growth versus

recycled and renewable material ratio, in order to achieve2023, by improving business quality globally as well assustainable value creation including our contribution to

expanding scale in growing markets. Adjusted operating

sustainability. Talent creativity, which became officially

profit might be at the level of 640 B JPY in 2026 which ismanagement indicator from the 24MBP, is targeted toapproximately 130% growth versus 2023 while adjusted

increase by 20 points versus 2023. In addition, as for

operating profit margin will be increased to the level

brand value, we will build a new brand power that aimsof 13%. Together with this, ROIC, the most importantsustainable premium.

Return to a strong Bridgestone
capable of adapting to change

Financial Indicators
Social Value and Non-Financial Indicators

Remaining issues &new issues

True next stage

Final year of 21MBPFirst year of 24MBP

Final year of 24MBP

2019

2023

2024

2026

109 JPY
122 JPY

141 JPY
152 JPY

135 JPY
149 JPY

130 JPY
143 JPY

Revenue 3,507.2 B JPY

4,313.8 B JPY

4,430 B JPY

4,800 B JPY

Currency
exchange30

Regarding social value and non-financial indicators, weon improving business quality and reinforcing our earning

USD
EUR

level

Become a resilient“excellent” Bridgestone
2030 Long Term Strategic Aspiration(Announced on August 31, 2022)

120 JPY
130 JPY
Improve quality
globally
Expand scale ingrowing market

5,000 B JPY

Strengthen quality& expand scale
Expandearning power

Over

level

Adj. Operating
Profit343.1 B JPY

480.6 B JPY

530 B JPY

640 B JPY

level

Reinforce
earning power

820 B JPY

Adj. Operating
Profit Margin

9.8%

11.1%

12.0%

13% level

Reinforce
earning power

Over 15% level

Strengthen
quality

ROIC

7.4%

8.7%

9.4%

10% level

12% level

Strengthen
quality

ROE

10.0%

10.4%

10.6%

11% level

13% level

Strengthen
quality

Dividend per
share

160 JPY

200 JPY

210 JPY

250 JPY level—

Strengthen
dividend

Carbon neutrality
CO2 emission reduction

57%

MIN

MIN

More than 50%(vs. 2011, Scope 1, 2)

Realize circular economy
Renewable & recycledmaterials ratio

Approx. 39%

More than 39%

110

130 level

Talent creativity
INDEX: 2019 = 100( = adj. operating profit ÷talent investment)

Corporate brand value(Interbrand data)

3,600 M USD level2024 – Announced on
February 20
Japan Best Brands 2024: No. 17

Reinforce earning
power being consciousof cost of capitallevel

Continue to improve

Evolve sustainability
business model—Expand social value—

Focus on value
creation based on
improvement of
productivity & creativity

Build new corporate branding withsustainable global motorsports at the core(link with the Bridgestone E8 Commitment)

50%
Expandsocial value

40%
Aim for place fordiverse talent to shine“Trust”“Empathy”

Sustainablepremium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 enter

quality”, 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 on

characteristic 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& TrueGlocalglocal
Portfolioportfolio
Management
Scenario Overview— Target overview — target —24MBP:
New& truemanagement
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 power

Reinforce 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
Product
strategy

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 as

Units) 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

JAPAN
segment

6 SBUs

G-MICA

BSDP

BSAPICBSAM

BSEMEA

Global mining
tire solutions &Aviationtire 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 closely

tires) / 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 and

The 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 Tire

Middle 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
Products
Sports & 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

24MBP Business Shaping Scenario: Further Focus on Value Creation

Create Good Business Quality “Passion for Excellence”• Respecting being on-site (Genbutsu-Genba), perform steady and agile PDCA while sticking to• New & true glocal management structure focused on Genbutsu-Genba—”Maximize effectiveness &• Have a healthy business risk sensitivity• Tackle past negative legacies squarely / From volume-oriented to quality & value oriented – Next stage• Talent investment—“Enhance talent creativity” / Culture change based on the “Bridgestone E8• Accelerate DX: Enhance use of generative AI

Improve productivity and creativity (Incl. expanding AI• Technology & innovation: Reinforce co-creation activities leveraging BIP

Create Good Tires

Reinforce creativity /• Realize “ultimate customization” that sharpens“ENLITEN” especially for “EV tires” – 24MBP:• Start “BCMA” + shift to Green & Smart –Create corporate value through balancing

Create Good Business• Reduce business cost: BCMA, Green & Smart,• New premium tire business model: Channel,• Evolve the sustainability business model:

Create New Business
Sowing Good Seeds
for the Future34• Truck & bus solutions: Establish mobility• Mining solutions: New value creation• Aviation solutions: Strategic starting point• Sowing new seeds: Evolve AirFree, etc.

(Management, Working & business quality improvement)
basics / Combination of continuous improvement and innovation / Pursuit of operational excellence
efficiency”

Improve management and working & business quality
Commitment”
algorithm use in business)
Reinforce IP strategy• Japan: Reinforce training at each level(management / executive / managerial / staff)• Global: Conduct training from the management & executive level ineach region
Expand to managerial & staff levels

edge in performances that not only meet the needs & wants of market/customers but inspires them.
Expand Generation 1
Build technology to launch Generation 2 in 27MBP
R&D and manufacturing transformation / Support “ultimate customization”

social value and customer value creation and gaining competitive advantage
steady on-site productivity improvements, global procurement, global SCM logistics transformation
retread, building a sustainable premium brandToward the realization of carbon neutrality & circular economy and nature positive

tech business in North America – Especially “Fleetcare” program
through real x digital – New challenge
to establish solutions business model including retread

Bridgestone 3.0 Journey 2024 Integrated Report35

24MBP Business Shaping Scenario

Create Good Business Quality
FeatureImprove Management Quality and Working & Business Quality—Bridgestone DNA / Unique Deming Plan

In the 24MBP, Bridgestone further focus on value creation in accordance with our business shaping scenario, which consists of thefollowing four scenarios: “create good business quality”, “create good tires”, “create good business”, and “create new businesssowing good seeds for the future”. The top priority issue in 2024 as the first year of the 24MBP, is to create good businessquality. We are striving to improve management and working & business quality globally. What forms the foundation for this is
Bridgestone DNA “focus on quality” and the mission “Serving Society with Superior Quality.”

Bridgestone’s Unique Deming Plan

dedicated to promote and drove the plan toward the Deming
Prize. Bridgestone received it in 1968, and today, we have

In reaffirming Bridgestone DNA, returning to origins, we havecontinued our initiatives lead by “TQM Promotion

begun by reaffirming and re-enhancing understanding of

Department” under Global CQMO (Chief Quality Management

Bridgestone’s unique Deming Plan. The Deming Plan is the

Officer). The basic thought of Bridgestone’s unique Deming

activities which we promote toward improvement ofPlan is “good company quality makes good quality ofmanagement and working & business quality aiming for

products and services”. Based on this, we reaffirm andthe “Deming Prize” since 1960s. The Deming Prize wasre-enhance understanding of 5 concepts - “PDCA,” “5W1H

established in 1951, to honor Dr. Deming who was a(use why why why analysis),” “Promote rational

statistician in the U.S. and greatly contributed to the quality

standardization,” “Explain by using accurate data,” andcontrol movement in Japan. Dr. Deming’s idea was that the“Control important points”.

quality is created not only in the plant but is a matter ofoverall management, and is deeply related to management
philosophy. The prize isRe-enhancing Understanding of Bridgestone DNA
and Bridgestone’s Unique Deming Plan

recognized in the industry as

Receiving the Deming Application
Prize (1968)

the highest honor given to a

In order to reaffirm and re-enhancing understanding of thecompany whose quality

Deming Plan, we are initiating our training in all regions,control activities are company-

functions and job layers, from management to all employee

wide and comprehensive.

in global. As a starting point, the Global Executive Committee

We introduced this method in(Global EXCO) was held in March 2024 in Kurume City,

the 1960s when promoting

Fukuoka Prefecture, which is the birthplace of Bridgestone.

the modernization ofVisiting footsteps of the founder, all members of the global

management andmanagement team reaffirmed Bridgestone DNA based onenhancement of quality

Genbutsu-Genba (respect for being on-site). Also, we hadmanagement activities, andworkshops to reaffirm and re-enhance understanding ofin 1964, we independently“Bridgestone’s unique Deming Plan” and discussed specificnamed the activities as

management issues with PDCA and why why why analysis,“Bridgestone’s unique Deming

as well as visited on-site to see and learn on-site improvement

Plan”, established an

activities based on Genbutsu-Genba (respect for beingorganization which wason-site). Conveying Global CEO’s message to employees

Bridgestone’s Unique Deming Plan
Basic
thought
5concepts

36

Good company quality makes good quality of
products and services① Master PDCA ② Use 5W1H (WHY-WHY- WHY analysis)③ Promote rational standardization④ Explain by using accurate data ⑤ Control important points

Bridgestone’s unique Deming Plan
- Original Excerpt Edition connected with 24MBP -0/30

for the improvement of management quality on our 93rd

improvement by sharing excellent practices of TQM

anniversary of founding, we are working on disseminating

activities from each site of the world and evolving quality“Bridgestone’s unique Deming Plan” globally and conductingof working & business. In 2023, the 13th conference was held

workshops for all functions and job layers in global operations.

in person for the first time in four years after the COVID-19

Through these activities, we improve management andpandemic. Sixteen out of more than 2,000 improvement

working & business quality by deepening understanding ofcases submitted from regions and offices around the world

all global employees on the thoughts of founder Shojiro

were presented as excellent initiatives, followed by

Ishibashi toward its founding which are our origin, Bridgestone

exchanges of opinions among management and award-

DNA that has been cultivated since our founding, and thewinning teams.

intention and history of the Deming Plan.

Improve Management Quality and Working &Business Quality:
Strengthen Global TQM Activities Steady
Bridgestone values TQM (Total Quality Management)
activities and the Bridgestone Group Awards, our highestranking employee recognition program, important as
global asset to re-enhance understanding of Bridgestone
DNA and the Deming Plan at actual business and on-site
initiatives. In particular, since the promotion of“Bridgestone’s unique Deming Plan” in the 1960s, TQM
activities have been our global asset and inherited as ourculture to pursue continuous improvement and innovationstrongly reflecting Bridgestone DNA. We have held the

The 13 th Bridgestone Group Global TQM Conference"Group Global TQM Conference" every year from 2010 withthe aim for encounraging innovation and continues

Group Global TQM Conference: Awardee
Under the Bridgestone DNA “focus on quality,” we have a responsibility to deliver good tires toour customers at the timing when they want. In order to fulfill such responsibility, we tackled
the improvement to prevent malfunctions in the 6-kilometer conveyor through which tires
flow. By running the conveyor with tires equipped with acceleration sensors, we were able tocollect and visualize data on roller rotation defects that were previously invisible, leading topredictive management. I will continue to support our customers’ everyday lives by
persistently practicing the “5 concepts of the Deming Plan”, going forward.

Shinichiro Kondo
Supervisor, Inspection, Quality Assurance Department, Kurume Plant

We introduced automated visual inspection machine in the inspection process to improvecustomer value for further quality stabilization. This project was complicated and took a longtime for its implementation, however, we achieved it by meticulously conducting the PDCA
cycle and monitoring its situation on a weekly basis. Also, the participation in Group Global
TQM Conference gave me a lot of good practices. I will leverage this experience for future
improvement activities.

Patricia García
Final Inspection, Bridgestone Burgos Plant

Bridgestone 3.0 Journey 2024 Integrated Report37

24MBP Business Shaping Scenario: Good Business Quality

Talent Creativity Enhancement / Creation of New Corporate DNA Linked to theBridgestone E8 Commitment
Specific Efforts to Enhance Talent Creativity

Improving Productivity and Creativity(Talent Creativity) of Every Individual
In order to promote a talent strategy linked to business■ Talent Development

Bridgestone undertakes talent development based on a

strategies, the core of the Bridgestone’s talent strategy istalent strategy aligned with its business strategy. In addition

based on the idea of providing opportunities for diverse

to strengthening the Bridgestone DNA, we are expanding

talent to shine through the spread of individual success andlearning and challenging opportunities to support talent who

confidence. At the same time, this aims to enhance corporate

are keen to take on challenges and grow on their own tovalue by creating added value linked to business strategy. In

create further value. This will help ensure both the company’sorder to realize our 2030 Long Term Strategic Aspiration andgrowth and each employee’s growth can be realized.

improve the quality of our management and working &Through these efforts, we aim to create a virtuous cycle ofbusiness, which is a priority issue in 24MBP, we need to hirevalue creation while increasing employee engagement.

talent uniquely suited to Bridgestone who share and embody
the Bridgestone DNA, and then improve the productivity andcreativity of each and every one of these employees. We are■ Genba (On-site) 100-Day Challenge Program

In April 2023, we launched the “Genba (On-site) 100-Day

undertaking various initiatives to ensure that the corporate

Challenge Program”, in which employees take the initiative

growth and the growth of each and every employee go handto engage in investigating and verifying any issues orin hand.

hypotheses they have formulated on their own about theirAs an indicator of these efforts, “talent creativity” was first

respective operations. This initiative would be conducted fortested in 2023 and introduced as a global management

100 days at Japanese or overseas worksites, thereby

indicator starting from the 24MBP. The basic concept ofpromoting awareness and behavioral change. In 2023, 15“talent creativity” is to strengthen investment in humanpeople from diverse functions and departments, including

capital, increase added value, and create a virtuous cycle ofsafety and procurement, took part in the program. Fromvalue creation. We define the “talent creativity KPI” as

2024 and beyond, the program will be expanded globally toadjusted operating profit (added value) divided by talentencourage even more employees to take up the challenge.

investment (sum of labor, training, and benefits costs), anduse this as a common global measure to monitor global
trends and address issues in each region and country.
“Genba (on-site) 100-Day Challenge Program” was a

Talent Creativity KPIvaluable opportunity for me, as a member of the Quality
Division, to collaborate with my teammates in Japan andoverseas involved in the growth business of TB retread

Talentcreativity

Added value

UP

Further challenge
to create added value

UP

Talent investment

tires, and to drive PDCA cycle and improvements on
Genbutsu-Genba. I have gained valuable knowledge from
activities such as improvement activities analyzing eachUP

individual tire and identifying the cause of failures throughthe actual product review meetings in Japan, data-driven
Averagefor 24MBP

130 level
117
100

119
110

117

+10 Pts level115

to strengthen recurrence prevention using the Process QA
Reference List. I was also able to build a wide network ofglobal connections. Moving forward, I will make efforts

21MBP→24MBP

Averagefor 21MBP

125 level

market analysis tools in the United States, and activities

to improve the working & business quality based on theoriginal five concepts of
the Deming Plan, with afocus on strengthening the

2019

38

2020

Retread QA system.

24MBP

74
2021

2022

2023 2024
Result2025

2026

Takuma Nishida
CQO/Quality Division
G-Material & Evaluation
QA System Section

■ Digital Skill Enhancement (Digital 100 Days of Training)proactive and willing to take on challenges in order to

We have introduced the “Digital 100 Days of Training” as anprovide greater value to stakeholders. Through multiple

opportunity for our employees to choose a program that

initiatives, we continue to support the challenge and growthsuits their level of ability and challenges them to learn. Theof numerous employees. In addition to creating a place

program covers a wide range of skill levels, including

where diverse talent can shine and take on diverse

beginner training in basic digital literacy compiled by thechallenges, we are promoting the creation of a new

Digital Literacy Council, and in-depth training in which

corporate culture, corporate DNA, and culture change linked

participants learn digital technology related to their own

to improving employee engagement and creating value

field. In 2023, a total of over 700 employees worked tothrough the Bridgestone E8 Commitment.

strengthen their digital skills. We believe that creating social
value and customer value through the fusion of the real andthe digital is indispensable to achieving the goals of 24MBP■ Establishing a Pleasant Working Environment

At Bridgestone, we make ongoing improvements to create

and realizing our 2030 Long Term Strategic Aspiration. We

workplace environments that are inclusive to diverse

will continue to globally expand our foundation of digital

personnel. These include on-site improvement activities

talent, promoting their ongoing development and acquisition.

and the use of FemTech programs to help resolve women’s
health issues through technology.

Creating an Environment where Diverse Talent
can Shine

As part of our on-site improvement activities, we makeinvestments that generate immediate results based on
feedback from employees at the foremost front lines of our■ Creating a Place for Diverse Talent to Shine

business. We are also working to enhance benefits, improve

Based on the belief that the success of diverse talent leads

the workplace environment and reduce employee workloads.

to the creation of value as expressed in the Bridgestone E8

In particular, safety is the very foundation of corporate

Commitment, Bridgestone has created a workplace

management, and as such each and every employee strives

environment that allows our diverse workforce to shine.

for “Safety First, Always”, as stated in our Safety Mission

Positioning the improvement of employee engagement as

Statement, by promoting safety activities throughout theone of the key issues in promoting global culture change invalue chain, thereby ensuring we can all work with peace ofline with the Bridgestone E8 Commitment, from 2023, wemind in a safe workplace. As we work toward an environment

have transitioned to monitoring through a globally

where diverse talent can flourish, we update our safety andstandardized engagement survey. While respecting thedisaster-preparedness standards taking into consideration a

differences in culture and characteristics of each country

variety of changes in conditions, including ergonomic risks,and region, we will deepen and evolve our efforts using a

regulatory changes, the changing performance of machineryshared global evaluation and framework for activities.

and equipment over time, and the introduction of new

The Bridgestone is active across a broad range of businesstechnologies. Furthermore, all our employees take theareas, including premium tires, solutions, diversified products,

development of safety awareness seriously. We will continue

and a value chain that extends from upstream (raw materials)

to develop workplaces where a diverse range of people canto downstream (sales and services). In all business areas andwork easily and with high motivation.

across the entire value chain, we believe it is essential to be

The Fundamental Area Safety team within Global Quality Management
Committee, has been developing a comprehensive roadmap to build
a Strong Safety Culture, aiming to achieve globally ‘Perfect Safety’as stated in our Safety Mission Statement. For this goal, our teampromotes safety from Awareness, Engineering and System aspects
such as implementation of fundamental activities (3S, KY, RA, Safety
rules), development of safety technologies and establishment of

Anisara Tisamee
General Manager
Safety and Disaster
Prevention, Bridgestone
APIC

global safety standards. Also ‘Safety Maturity Assessment’ is utilized
for continuous improvement in the PDCA cycle. Viewing safety as thefoundation of corporate management, we contribute to the entire
value chain by fostering a safety culture that protects our teammatesand creating safe and worker-friendly working environments.

Bridgestone 3.0 Journey 2024 Integrated Report39

24MBP Business Shaping Scenario: Good Business Quality

Bridgestone’s DX
EnergyBridgestone E8 Commitment

Ecology

Efficiency

Extension

EconomyEmpowerment

Linked with talent creativity enhancement, Bridgestone

development, and introduction of the tire building systemevolves DX (Digital Transformation) that supports value“EXAMATION”, which is equipped with AI. These initiatives

creation and productivity & creativity improvement.

have contributed to the development of Dan-Totsu

The theme of Bridgestone’s DX is “Faster, easier, andproducts by linking data to the engineering chain. While

more accurate with larger data.” Utilizing our uniquefurther developing these initiatives, Bridgestone issimulations and algorithms, we aim to accelerate

promoting DX to create social and customer value by

innovation by combining our strong “real”, such as market

connecting throughout the value chain and amplifying

and customer data obtained through our field engineeringvalue of Dan-Totsu products such as by providing solutions

activities, technology and development data cultivatedthrough building our unique algorithms utilizing AI.

through empirical experiments and demonstrations, with“digital”.

What supports this DX is global digital talent. We plan toincrease the headcount of global digital talent from

Since the 2000s, we have gradually introduced digital

approximately 1,600 in 2023 to the level of 2,000 in 2026

power (digital capabilities) into our R&D and manufacturing,on a global basis, through the expansion of in-houseincluding the introduction of material informatics in the

training, including reskilling programs, and co-creationmaterial domain, simulation technology in productwith partners such as universities.

Faster, easier, and more accurate with larger data

Engineering Chain Feedback to development of “Dan-Totsu products”

2009 〜

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

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

Craftsperson skills

Product development

Manufacturing

Material

1980 〜2010 〜

Contact tosociety & customer
e.g. Co-creation with JAL

2016 〜
AI-implemented tire building
system EXAMATION®

Collect tire data
and mobility data

Real

Digital2020 〜

Increaseproductivity

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

Tire design utilizing simulation

Visualize & standardize“craftsperson skills”
Promote shift to Smart

Increasecreativity

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

Connect the value chain and link with the solutions business
Amplify value of “Dan-Totsu products”
Global digital talent(Advanced & Intermediate)

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

→ To the level of 2,000 people in 2026

Enhance internal training& co-create with partners

Improve productivity &creativity leveraging generative AI– Improve working efficiency –We have been planning a digital talent development program with the aim of enabling all
employees to understand the meaning of data and the characteristics of digital technology
and apply them to their work to create new value. We have built level-based training programs
that allow people who have not been exposed to digital technology to initiate their learning,systematically learning from beginner to advanced levels. This training program incorporates
Bridgestone’s unique issues and data as case studies, so that participants can view the training
content as their own studies, so that participants can better connect training content to theireveryday work and enhance matters and enhance the learning effect.

Yasushi Hanatsuka
Director
Digital Solution AI/IoT Planning and Development Division40

Co-creation Leveraging Bridgestone Innovation Park “From Interaction with
Empathy to Co-creation”
EnergyBridgestone E8 Commitment

Ecology

Efficiency

Extension

Empowerment

For future value creation, ”co-creation” is essential,

As one of the examples, Bridgestone is accelerating joint

connecting with employees, society, partners, andresearch with Nippon Telegraph and Telephone Corporation

customers to create new value. Bridgestone’s R&D facility in(“NTT”) since there are many areas in which we can

Kodaira, Tokyo, was redeveloped as “Bridgestonecollaborate with NTT given the high compatibility between

Innovation Park (BIP)”, a global hub for innovation. Its

the visions of both companies. This joint research is based

full-scale operation commenced in 2022. BIP consists ofon the strengths of both companies in three areas: “Digital

three main facilities designed to promote interaction with

Twin”, “Sustainability”, and “Creating environmentally andempathy and cultivate relationships through co-ideation

people-friendly cities through tires”. Co-creation with TIER

and co-R&D to realize co-creation. First, “Bridgestone

IV, Inc. is also being promoted, aiming for contribution to

Innovation Gallery” aims to acquire empathy by showcasing

the evolution of mobility, such as R&D and

our history, DNA, business activities, and future initiatives.

commercialization of autonomous driving technology. In

Second, “B-Innovation” is an innovation center composed

addition, we are expanding co-creation activities throughof “Bridgestone Open Innovation Hub”, where people cancollaboration with industrial, governmental, and academia

view and engage with core Bridgestone technologies andpartners that leverage our core competencies. This includes

products with the aim of giving rise to new ideas, thejoint research with Tohoku University, that promotes“Rough Prototyping Studio”, where machine tools are usedmaterials development in the next-generation synchrotron

to give shape to ideas, and the “Co-creation Office”, which isradiation facility, “NanoTerasu”, and collaboration with

open to external partners. Third, “B-Mobility” is a proving

Kyushu University, that promotes comprehensive initiatives

ground that can be used to quickly experience and verify thesuch as joint research and talent development.

performance and potential of prototype mobility

With BIP at the core, working together with the global

technologies and products with actual vehicles.

technical centers as our innovation sites in 3 regions

We are promoting joint research with industrial,

including the U.S. (Akron, Ohio) and Europe (Rome, Italy),

governmental, and academia partners to create social and

we are initiating technology development based on

customer value starting with BIP. In 2023, approximately

role-sharing reflecting the geographical advantages and2,200 people visited the Open Innovation Hub, and 17 cases

strengths of each center, and are promoting co-creation

have evolved into joint research.

activities globally to achieve it.

Opened April 2022

Accelerate “from interaction with empathy to co-creation” based on the Bridgestone E8 Commitment2023(cumulative total from 2022)

2024

Customer & partner visits(Open Innovation Hub)Approx.

2,200 visitors

Evolved into
joint research

17casesDevelop as business base for Japan tire business—promote co-creation activities through integration of R&B (research and business)

Bridgestone 3.0 Journey 2024 Integrated Report41

24MBP Business Shaping Scenario: Good Business Quality

Intellectual Property Strategy
Innovating the Tradition of Utilizing
Intellectual Property

point for value translation is our true strength, and forms
the core of our IP portfolio from both real and digital
perspectives. The real perspective, for example, includes

Bridgestone is striving to manage intellectual property (IP)

our ability to gain insight into dormant needs that ourin a way that enhances corporate value by visualizing

customers are not yet even aware of, and to offer solutions

mechanisms to convert IP into social value and customer

based on our ability to see and know the market and othervalue. It is also managing IP by verifying the effectivenessphenomena on-site—an ability we have prioritized everof IP investment from an ROIC perspective, thereby

since our founding. Much of our “IP secret sauce” emerged

increasing the certainty of investment.

from motorsports activities—effectively, our “mobile

Our IP activities are based on the creation, succession,laboratory”—which has been passed down to the present

and development of our unique “IP secret sauce” as aday. On the other hand, in terms of digital, our ability tofundamental aspect to all our businesses. Based on thisdecipher big data and convert it into knowledge that leads

fundamental approach, we strategically undertake IP

to solutions for customers serves as the foundation of ourmanagement to amplify social value and customer value by

DX-based business such as aviation solutions and mining

understanding and visualizing diverse IP such as knowledge,

solutions. This “IP secret sauce”, which combines both realexpertise, and patents generated on-site (Genbutsu-Genba)

and digital aspects, is converted into new IP, including not

throughout the value chain. Then we effectively combine

only the IP cultivated through manufacturing but also in thethem as an IP mix tailored to the business model.

domain of business models through our unique IP mix. By
strategically combining IP—including not only patents but

Creation of social value and customer value
Premium Tire Business

Solutions Business

Exploratory Businessalso peripheral knowledge and expertise—we can amplify
and expand value in efficient and strategic ways.
In addition, in the area of tacit knowledge visualization, we
identify and extract “craftsperson skills” as the tacitknowledge that is crucial in differentiating our manufacturing
and solutions business from our competitors—not only on

Visualizationof the conversion
mechanism

Connecting
IP management

Visualization oftacit knowledge

IP that expands value
Quality assurance/service know-how

Real × Digitalcommunication with all departments, including development,
production, logistics, sales, service, solutions, and more.
We are expanding and strengthening our IP mix to link ourBusinessmodel patents

Secretsauce IPthe manufacturing floor (Genbutsu-Genba) but also throughTechnical
IP

Patent area
Confidential area

Knowledge to be able toconvert data (digital)
Knowledge/know-how ofbackground (real)

The IP mix

Talent that continues to evolve toinheriting our DNA

unique strengths to creating business value. By visualizing amechanism for translating value across the entire value chain
with the IP mix as its axis, we connect our strengths to thefusion of tradition and innovation.
In both real and digital terms, it is talent that creates this“IP secret sauce” and develops it into true value. The
Bridgestone E8 Commitment and the organizational
capability to cultivate talent that keeps evolving andpassing on our corporate culture and DNA are also key
elements of our IP management.
We are also using amplification of value through IP
visualization in co-creation activities with partnercompanies. In achieving IP management through open

Toward Translating Intellectual Property into
Social Value and Customer Value

innovation, we strive to create synergies that generatevalue for both parties by organically combining our IP withthat of our partners, based on the fundamental premise of

In order to translate IP into social value and customer value,

respecting the IP of partner companies. By visualizing each

we utilize two methods of visualization—“mechanism

other’s IP and through transparent and fair IP contracts thatvisualization” and “tacit knowledge visualization”—toclearly identify the ownership of intellectual property, we

increase the certainty of the IP investment’s contribution

establish an “IP safe zone” where both parties can shareto business. In concrete terms, mechanism visualization

intellectual property with peace of mind, thus contributing

allows us to grasp the characteristics of each businessto fair communication, free and open-minded win–win

portfolio and work toward IP management linked toco-creation activities, and building relationships to that end.

business strategy. The “IP secret sauce” that is the starting42

Mechanisms for Visualization in ENLITEN,
Bridgestone’s Unique Base Technology for
Product Design and BCMAIn ENLITEN/BCMA, we hypothesize the relationshipbetween the fundamental technology and thebusiness model to be pursued, and visualize themechanism by which intellectual property isconverted into value, as shown in the diagram to theright. Our “secret sauce” of proprietary technologies,● ENLITEN×BCMA IP Influence Diagram“New premium”

Social value

Improve product power－Generate customer delight

Customer value

Reduce cost － simpliﬁcation

Achieving both performance and simplicity / optimizing the entire value chain

Convert IP
into value
through
IP management

Improvement of tire performance

Mastering road contact

Mastering rubber

Secretsauce IP

Integrated system of sales,
production and R&D

Modular design and ﬂexible production

Mastering manufacturing

SCM optimization

IP that expands value
Patents

Knowledge/know-how

Conﬁdential technology

consisting of patents, knowledge and expertise, islinked to “mastering rubber”, “mastering roadbusiness model of ENLITEN and BCMA. Sincecontact”, and “mastering manufacturing” ofvisualization has enabled mutual understanding

technology innovation and our strengths in supply

between us and our R&D and business divisions in

chain management. Furthermore, this will be

the field, prioritization of IP investment has been

converted into value through the expansion of total

decided through close communication. This enables

performance of tires, modular design/flexible

us to achieve IP management that increases the

production, and an integrated system of sales,certainty of value amplification.

production, and development, lead to forming theLeveraging Intellectual Property in
Co-Creation Activities

enhance the IP value and corporate value of both

Our IP division has been involved from the initialin being able to conduct co-creation activities based

stages of our co-creation activities with TIER IV, Inc.

on free and open communication in order to utilize

helping to establish an IP safe zone that ensures a

TIER IV’s technologies and expertise in autonomous

win—win for both parties by preparing IP

driving, which is a new technological field, inagreements. The combination of our unique IP in tiredeveloping tires and solutions. For example, we have

manufacturing and TIER IV’s unique IP in innovative

gained insight into key factors of basic tire

autonomous driving technology creates IP that could

performance previously not visible to us, which has

never be realized alone, and can be expected to

led to the creation of new IP.

Verifying Return on IP Investment Using ROIC

parties. For Bridgestone, there is a huge advantage

multiple KPIs from both inward-looking and outward-looking
perspectives, we will continue to strive to continuously

We verify the effectiveness of IP management byimprove our IP management and enhance quality of

implementing the concept of ROIC, our key management

operations by verifying the effectiveness of IP investment.

indicator. Specifically, we set “IP value creativity” as a results-

IP valuecreativity

driven KPI that measures the contribution to sales generated
by leveraging IP and IP revenue. We also set factor-oriented

IP value＝

IP investments

KPIs that measure management efforts. The quality of IP
operations is improved by verifying overall IP managementwith results-driven KPIs, and by implementing the PDCA cycle

8.8

9.4

10.2

10.5

10.9

for management measures with factor-oriented KPIs.
Bridgestone’s IP value creativity nearly doubled in 2023
compared to 2019, thanks to our thorough implementation oflean IP investment, improving the quality of our IP mix, and

4.7

5.2

2022–

6.0

Management ofenhancing IP value

2021

the efficient and strategic use of IP mix tailored to business

Implementation of lean IP investment

models. As of the end of 2023, the number of IP mix units,
which is one of our factor-oriented KPIs, was 15 units currently
being utilized and 26 units under preparation. Having set

2019

2020

2021

2022

2023

2024

2025

2026

Bridgestone 3.0 Journey 2024 Integrated Report43

24MBP Business Shaping Scenario

Create Good Tires
In the second business shaping scenario, “create good tires,” Bridgestone accelerates value creation through the fusion of
ENLITEN, the base technology for product design, positioned as Bridgestone’s unique “new premium,” and BCMA, the basetechnology for R&D and manufacturing that reduces business cost.

From Volume to Value—Accelerating Focus on Premium
Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extension

Strategic Direction from a Mid-long-term
Perspective: Why Does Bridgestone Need toCreate “New premium”?

Strengthen Existing Premium Segment“From Volume to Value”: Accelerating Focus
on Premium

Currently, the demand growth for high rim diameter tires as

Focusing on PS tires, where a tailwind in demand continues,

the premium segment becomes a tailwind for PS (passenger

Bridgestone is accelerating its focus on premium, “fromcar) tires. This tailwind is expected to continue during thevolume to value” in all product types, and is driving sales

24MBP period, however, may slow down after 2030 or

and is aiming to increase market share in the premium

possibly a little earlier.

segment.

First, during the 24MBP period, we will seize the tailwind

For PS tires for replacement, we improve the sales mix,

in demand to the fullest extent. To overcome “decrease

increasing the sales ratio of premium tires including

in tailwinds” after 2030 and keep growing, Bridgestone

premium tire brands to 70% in 2026. For high rim diameter

will create its own “new premium” starting from thetires, we also focus on ultra-HRD tires 20 inch and above

24MBP period.

and further expand sales and market share. Particularly, inNorth America, the most important market, we aim tocontinue to strengthen sales expansion and market share
increase and improve the sales portion of high rim
diameter tires to 65% and the sales portion of premium
tires to 80%. In Europe, we aim to increase our market

44

share with high rim diameter tires, and thoroughly pursue

business foundation, we promote to expand sales andour focus on premium in other regions also.

increase market share in the entire TB business for new

Regarding TB (truck and bus) tires for replacement, weand retread tires.

plan to expand sales and increase market share globally,

For OR (off-the-road for mining vehicle) tires, where all

and by strengthening retread tires mainly in North America

tires are ultra premium, we expand sales and increaseand Japan, Bridgestone will increase the portion of retread

market share with Bridgestone MASTERCORE at our core,tires in the entire TB business to 50% globally in 2026.

as a Dan-Totsu product.

Particularly in North America, where we have a strong

PS premium tires (replacement)
Accelerate shift to premium

OR Ultra-large & large

TB (replacement)

All ultra premium tires
Reinforce sales & market share increase

Increase sales & market sharefor new tires + retread

High rim diameter tires

New tires

Large tires (OE + REP)

U.S., Europe, Middle East: 18 inch & above Other regions: 17 inch & above

Retread tires

Ultra-large tires

Premium tire brand + premium tires in each region
Other tires

ENLITEN
equipment
ENLITEN
equipment

Approx.

65%

ENLITEN
equipment

ENLITEN
equipment

Approx.

Approx.

ENLITEN
equipment

100%

ENLITEN
equipment

8%

Premium ratio
Approx. 70%

57%

3%

70%

Approx. 100%

Approx.

40%

Approx. 90%

Approx. 90%

Ratio of ultra-large
63 inch MASTERCORE

Further
expandpremium ratio

Approx. 25%

20%
36%
2021

2023

Approx. 45%

2026

2030

2021

Retread ratio

Approx. 50%

48%

Approx. 50%

2023

2026

2030

2021

2023

2026

2030

Bridgestone 3.0 Journey 2024 Integrated Report45

24MBP Business Shaping Scenario: Create Good Tires

Premium Tires for Passenger Cars—ENLITEN as New Premium in the EV Era
Bridgestone E8 Commitment

EnergyEcology

Efficiency

Based on the foundation of reinforcing existing premium,
Bridgestone creates its own unique “new premium” throughthe expansion of ENLITEN, the base technology for productdesign. ENLITEN is a technology that evolves environmental
performance while expanding basic performance andelevating all conventional performances. It also pursues“ultimate customization” to sharpen edge in a performance
which not only meets the apparent needs and potential
wants of the markets and customers, but also further
inspires markets and customers by creating new value thatthey may not have imagined, according to thecharacteristics of diverse vehicles and usage conditions.
Particularly for PS tires, we respond to changes anddiversification of desired tire values on the back of the
adoption of EVs, etc., as “new premium in the EV era”.

ENLITEN Expansion — OE/REP Linkage:
Premium Tires for Passenger Cars — OE
For original equipment (OE), the starting point of expanding
ENLITEN, we strengthen our approach to premium vehicles/
OEMs, prestige OEMs, and premium EVs. By developing“ultimate customization” with ENLITEN technology andproving its value, we aim to expand the number of new car
models that come fitted with ENLITEN OE-produced tires from
75 models at the end of 2023 to approximately 250 models at
the end of 2026 including emerging EV manufacturers (global
cumulative total). Also, through strengthening approach toprestige OEMs, we will link this with building a sustainablepremium brand.
Premium EV users in the initial stage of EV adoption
have a high tendency for recursion from OE to REP tires.
We steadily capture REP recursion demand, starting fromthe expansion of OE fitment.

Create Value in REP Tires by Leveraging “Retail& Service Network” as a Touchpoint with
Customers and Vehicles
Based on the retail & service network, which serves as atouchpoint between Bridgestone and its customers andvehicles, we create new demand by ourselves throughstrengthening value creation in REP tires. By being attentive
to customers, providing high-quality services and listening
to the voice of customers at retail sites, we meticulously
understand the value desired of tires by car and by market.
In addition, through end-of-life tire surveys by fieldengineers on-site (Genbutsu-Genba) we identify challenges
and promote tire product planning and development topursue “ultimate customization”, starting from customer
pain points.
In 2023, Bridgestone launched the TURANZA EV, our firsttire specifically designed for EVs, reflecting customer
feedback from the U.S. West Coast and addressing theissues of enhancing sustainability and early tire wear on
EVs. In Europe, we have also launched TURANZA 6, which
is EV ready and has enhanced wet-handling performanceand wear, etc. required in the European market. In Japan,
we launched the REGNO GR-X III in February 2024, the first
ENLITEN-equipped tire for REP use in Japan. This has also
improved handling performance, sharpening our edge inquietness, and enhanced the environmental performanceby using renewable resources as raw materials. From
2024, we plan a full-scale expansion of the number of
ENLITEN-equipped REP tires for the global market, aiming
for a cumulative total of 45 products and 65% ENLITENequipped products by 2026, and 100 products and 100%
ENLITEN-equipped products by 2030.
The 24MBP is the “1st stage of the new premium” that offers

Approx. 250

new value to customers by expanding the first generation of
ENLITEN technology. The 27MBP will be the “2nd stage of new
premium” where we launch the 2nd generation of ENLITEN in
the market, expanding value together with the evolution ofbrand power which aims to establish a sustainable premium.

Approx.

Creating social value linking with business

Number of car models with ENLITEN OE fitment (global)
Non-EV

Extension

EV

150

Through the expansion of ENLITEN, the “newpremium in the EV era”, we commit to therealization of a caron neutral mobility society—
Energy in the Bridgestone E8 Commitment.

75

46

27

45

20
7

29

2021

2022

16

44

Approx.

100

31
2023

2026 planValue creation in REP tires, leveraging retail & service network
Strengthen approach to premium &prestige OEMs
Expand OE fitment including for EVs

Original Equipment(OEMs in Japan / Europe / U.S. / China, etc.)

ICE

Improvement in driving range /Low electricity consumption

Replacement

Reduce environmental
impact / Long-life

EV

Increased severity on tires

Hardware-defined vehicle

Software-defined vehicle* Internal combustion engine
Customertouchpoint

Customertouchpoint

Retail & service network

Touchpoint with customers & cars
– Be attentive to & deeply understand customer problems –2 High-quality service & maintenance through the retail network

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

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

Gather insight from
Genbutsu-Genba observations &interviews with users

1

Dan-Totsu products

Field engineering

Tire product planning & development withcustomer problems as the starting point

Solve with “ultimate customization”

Generate customer delight with
Dan-Totsu products

ENLITEN - equipped REP products

North America

Japan

EuropeBridgestone’s first EV
specialized product for
replacement equippedwith ENLITEN

Launched Sep. 2023

Launched Feb. 2024

Dry Braking

Braking
Dry Handling

Noise

WeightComfortNoise

Wet-handling

ComfortWet-handling

Wear ResistanceRRC

The first ENLITEN productfor replacement in Japan

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

Launched May 2023

Dry Handling

OE-REP linked productanticipating EV expansion

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

Wet Handling

Wear Resistance
MCN

More than 20% higher wear resistance vs.
Bridgestone’s conventional product.

Significantly improved wet-handling performanceand rolling resistance, important performances in theEuropean market. Balanced in every performance at a high dimension.

Quietness

Dry HandlingLight Weight

Wear Resistance

WeightLow RRC

MCN

ComfortMCN

Fuel Efficiency

Comfort achieved from superior quietness, and driving

performance refined with highly responsive handling.

Contribute to the realization of sustainability throughreduced weight and use of recycled & renewable materials.

Our team worked on developing “TURANZA EV”, Bridgestone’s first EV specialized tire equippedwith ENLITEN technology, to realize our vision “Sustainable solutions company”.
We aimed to offer the performance which contributes to sustainability to customers, andalso listening to the voice of customers, mainly from the West Coast where the shift to EV isadvancing, cooperation with Bridgestone retail channel network to capture clearly the pain
points on EV such as premature wear.
After many co-creations with diverse departments to realize our vision, ENLITEN technology
was first installed in North America. We also achieved to provide customers EV-specialized
tire with improved wear resistance by 50% versus conventional product and with recycled &renewable material of 50%.

Jeff Cook
Executive Director
Product Strategy and Portfolio Planning, Bridgestone Americas

Bridgestone 3.0 Journey 2024 Integrated Report47

24MBP Business Shaping Scenario: Create Good Tires

R&D and Manufacturing Transformation: BCMA (Bridgestone Commonality
Modularity Architecture)
EnergyBridgestone E8 Commitment

Ecology

Efficiency

BCMA, supporting “ultimate customization” consolidates
tire parts into three modules and shares them among
different products, simplifying the supply chain including
development and production. It is Bridgestone’s basetechnology for R&D and manufacturing which shortensdevelopment and production lead times to agilely provide
value to customers while also aiming to reduce business cost
including environmental impact.
In promoting BCMA during the 24MBP, we pursue theessence of R&D and manufacturing based on Genbutsu-Genba(respect for being on-site) to start creating benefit, focusing onvalue creation. Direct benefits, or the primary benefits fromBCMA are generated from the first year of BCMA introduction in
2024. These consist of manufacturing cost down related toreducing changeover in production by sharing parts between
products, and development cost reduction due to module
sharing. Secondary benefits plan to be created mainly fromthe second year of BCMA introduction in 2025, in which we
expect the reduction in direct material cost and in conversion
cost from productivity improvement. These include benefits
from the evolution of R&D and manufacturing such as
improved capacity in production process and reduced
workload at production sites in BCMA deployment.
These benefits will be adjusted according to each plant’s
R&D and manufacturing power. Plants in the EAST regions(Japan and Asia), that already have high R&D andmanufacturing power and have high productivity, tend tohave smaller room for improvement through BCMA. On theother hand, plants in the WEST regions (U.S. and Europe),that face challenges in manufacturing, tend to have greaterroom for improvement. We lead to create value by
specifying the benefit in each plant according to the roles
and responsibilities of each of the 45 new tire plants clarified
in 2023. Four tire plants globally, two each from Bridgestone
EAST and WEST, have been designed as model plants andlead benefit creation. (Model plants: Burgos plant in Spain;
Joliette plant in Canada; Nong Khae plant in Thailand; Tochigi
plant in Japan.) During the 24MBP period, we will switch
approximately 50% of our global PS tire production to BCMA.
BCMA global benefit amountAccelerate value creation by steadily deploying BCMA in each plant
BCMA global benefit

Amplificationof value
Secondary benefit toemerge from the
2nd year of BCMA
introduction

SecondarybenefitPrimary benefit2024
1st year48

2025
2nd year2026
3rd year・・・BCMA introduction

Extension

EconomyTread (tire surface)

Customization

Carcass(tire skeleton)Belt(reinforces tire)

Simplification

Link Steady Productivity Improvement andShift to Green & Smart
Linked with BCMA deployment, we drive steady productivity
improvement as well as the shift to Green & Smart to amplify
value and reinforce earning power. In terms of steadyproductivity improvement, we are pursuing streamlined
production based on Genbutsu-Genba (respect for being
on-site). In addition, we accelerate this spiral up of“standardizing craftsperson skills that have been cultivatedon-site over many years by leveraging digital capabilities,
and reinforcing the entire R&D and manufacturing power by
ensuring and improving the standards, and then evolving
the standards as craftspeople enhance their own skills.”
Combining this with automation leveraging smart technology
will accelerate productivity improvement. We concretize
and execute improvement in each plant, aiming to improve
productivity by more than 10% level in 2026, compared
to 2023.
Moreover, when it comes to the shift to Smart, we aim
to connect the entire production process through digitalsensing, AI, and automated control to achieve highly
accurate and efficient R&D and manufacturing. In the
24MBP, we plan to introduce MES (Manufacturing Execution
System) as a digital platform that digitally captures the
production process and to automate the inspection process.
We will also promote technological development, looking
ahead to implementation in the 27MBP. Regarding the shift
to Green, we reduce energy Gentan-i (energy consumption
per unit) continuously.
In each target goal of driving the shift to Green & Smart,
we steadily move forward with the 2030 Long Term
Strategic Aspiration as our North Star.

Shift to Green & Smart: Targets
2026 targets

Green

50% over reduction

CO2 emissions

Maximize value with minimum
sustainable resources

Deployment ratio of ultimate “circle” technology

Smart(Deployment ratio for technology applicable machine)

Less skills/High efficiency labor productivity

Value creation fusing ENLITEN and BCMA gradually starts
in 2024 and will expand in 2025-2026 as the true nextstage, to reinforce earning power. In the 27MBP, we willbuild a foundation to further reinforce business quality
and expand earning power.

2011)
50% reduction (vs.
(Scope 1, 2)Over 70%

Renewable energy (electricity)“Strong” real (Takumi) x
digital mastering manufacturing2030 targets(vs. 2011)(Scope 1, 2)

Aim for 100%

Approx. 50%

100%

Above 110%

130%

Creating social value linking with business
Bridgestone contributes to driving carbon neutrality
by reducing its environmental impact throughsimplifying the value chain with BCMA and by
reducing energy Gentan-i (energy consumption perunit) with the shift to Green.

Accelerate value creation through the fusion of ENLITEN and BCMA

Enhance value
Creation of
corporate value

Ultimatecustomization
Differentiation

Reinforcement of
earning power

UP

Base technology for
product design“New premium”

Gen 1

Improve product power—Generate customer delight
Elevate all conventional performances, and largely
evolve environmental performance and/or performancethat not only meet the needs & wants of specific market/
customers but further inspires them (= “sharpen edge”)

Value creation(social &customer value)

Gen 2

Expand performance
spider chart“sharpen edge”

FusionDOWN

Base technology
for manufacturing
and R&D

Customization

Module 3

Customize performance
per market/customer

FusionGainingcompetitive
advantage

Simplification

Reduce businesscost &
environmental
impactReduce cost
Simplify operations in R&D and production /Support “ultimate customization”

Simplification

Module 2

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

Module 1

As we roll out BCMA globally, we have discussions with many teammates from each SBU, at
Genbutsu-Genba (being on-site), and promote initiatives on a daily basis by performing the
PDCA cycle. Although regions and positions may differ, our passions for creating good tires
remain the same. We will evolve R&D and manufacturing to a new stage, supporting ENLITEN
to realize ultimate customization while reducing our business costs. Through BCMA, we will
also transform the individual mindset to R&D and manufacturing as well as organizational
culture, which will create good business quality.

Kosuke Yukitake
Executive Director
Global BCMA and Technology Strategy

Bridgestone 3.0 Journey 2024 Integrated Report4924MBP Business Shaping Scenario: Create Good Tires

FeatureGlobal CTO Message: Bringing ENLITEN to the Next Stage with Technology
Innovation and R&D and Manufacturing Transformation

Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extension

EmotionBridgestone’s Technology Innovation
Bridgestone is taking on the challenge of continuously
creating new value by fusing digital power with strong realcapability such as extensive experience & knowledge,know-how, data of tires that we have gained from staying

Masato Banno

close to customers on-site over 90 years of our history.

Senior Vice President andExecutive Officer
Global CTO / Monozukuri

Especially in our premium tire business as core business,
Bridgestone is promoting technology innovation based on
three axes of “master”—“mastering rubber”, “mastering
road contact”, and “mastering manufacturing”—with the

Bridgestone’s DNA of “Genbutsu-Genba (respect for being

evolution of ENLITEN technology at its core. Whileon-site)” and “being attentive and supportive of customer

leveraging new technology from internal and external

problems.”

co-creation, we amplify the generated value and expand
its value to solutions business as growth business or

Mastering Rubber

exploratory business. By doing so, we aim to become acompany that keeps providing social value and customer

Bridgestone’s strengths in seeing, analyzing, and managing

value as a sustainable solutions company, which is ourrubber lead to the development of innovative materials tovision.

realize thinner and lighter. First of all, we are evolving our“seeing” technology so that the structure of rubber andIn Pursuit of “Thinner, Lighter, and Rounder”—“Ultimate Customization”

molecular can be observed more clearly, by utilizing
collaborations with external partners. Furthermore, we will
enhance our “analyzing” technology and rapidly identify

By creating tires “thinner, lighter, and rounder”, we canmolecular structure of polymer complexes by accumulated

expand the performance spider chart. Creating themextensive knowledge about tires and rubber over our“thinner and lighter” enhances environmental

history, enhancement of introduction of state-of-the-art

performance including resource productivity and higher

digital technology in material informatics, which we haverolling resistance, while creating tires “rounder” improves

been leveraging for a long time, and material analysis

driving performance such as handling stability and ride

combined with unique simulation technology, thereby

comfort. ENLITEN, which Bridgestone positions as a new

linking it to “managing” technology. Evolution of thesepremium, not only responds to diverse needs and wants ofseeing, analyzing, and managing technologies leads todiverse markets and customers, but also provides new

more agile development of higher-performance rubber.

value and improves the performance spider chart bypolymers, fillers, resins, and chemicals, but we also

this is a base technology for product design that sharpens

developed robust, high strength network rubbers byedge in performances that further inspires them. However,making full use of compounding technologies and

if we simply create tires thinner and lighter, tires generally

processing techniques to maximize the potential of eachbecome weak, fragile, and easily distorted, which leads to

raw material mentioned above, thus achieving significant

reducing their performance. ENLITEN technology pursues

improvement in wear performance for products such as“ultimate customization” that can be tailored to each

TURANZA EV. Furthermore, we are making efforts tomarket and customer, by assembling more robust anddevelop a double network rubber that combines two

flexible materials accurately, which will resolve

different rubber networks, one for robustness and anothercontraventions and expand the performance spider chart.

for flexibility, in a single rubber structure by evolving our

We will continue to evolve ENLITEN technology to the next

“managing” technology. We will complete development ofstage by further advancing our three technologicalthis double network during the 24MBP, and plan tofoundations—mastering rubber, mastering road contact,

implement it into new products in the 27MBP.

and mastering manufacturing—while keeping in mind of

50

In the 21MBP, we not only evolved raw materials such as

pursuing “thinner, lighter, and rounder”. In other words,

Mastering Road Contact

Smart. By fusing ENLITEN, a base technology for productdesign and BCMA, a base technology for manufacturing andLeveraging Bridgestone’s unrivaled knowledge of the

R&D, we aim to achieve both ultimate customization andworld’s roads, we have further evolved Bridgestone’s uniquebusiness cost reduction. This will create social value andtire development technology “ULTIMATE EYE”, born from ourcustomer value, leading to reinforce earning power andexperience in F1®, enabling to visualize ground contact

create corporate value.

conditions on a variety of road surfaces. Furthermore, by
combining our original tire simulation with vehicle
simulations, we have optimized the tension distribution ofply cords, which serve as the framework material for tires,

From Circuit to Street
Mobile Laboratory—Refining ENLITEN Technology
Using Sustainable Global Motorsports

to achieve uniform ground contact with thinner and lighter
tires. This technology is incorporated in the REGNO GR-X III

For Bridgestone, motorsports are our origin as alaunched in Japan in February 2024. We will keep evolving

tire manufacturer as well as a “mobile laboratory”. Throughour simulation technology toward mastering road contact

the development of motorsports tires that face extreme

by fusing of strong real and digital.

conditions, we have refined diverse technologies
becoming a foundation of our technology innovations ofMastering Manufacturing

today. Moving forward, we will leverage sustainable global
motorsports to promptly demonstrate the next stage of

The tire production process consists of two parts: a front-

ENLITEN technology and to reflect it to the development ofend process of mixing rubber, then preparing andtires for the markets. Most recently, we are driving

processing it into components of the desired dimensions,

technology development to supply motorsports tires

and a back-end process of assembling the processed

equipped with next-generation ENLITEN technology forcomponents into the shape of a tire, vulcanizing it, andthe 2025 Bridgestone World Solar Challenge (BWSC).

inspecting the finished product. To create tires thinner,
lighter, and rounder, high-precision preparation, processing,and assembly are required at each process. As such, theLeading to Drive Sustainability /Accelerating Technology Innovation

evolution of our manufacturing technology is essential.
By utilizing the sensing technology and big data that were

We are also taking on the challenge of leading to drive

developed through our AI-implemented tire building

sustainability across the entire value chain of motorsports

system, “EXAMATION” which has been in practical use sincetires as a “mobile laboratory.” By applying our technologies

2016, and linking the data from the front-end and back-end

of “seeing,” “analyzing,” and “managing” rubber, which

processes, all components of a single tire can be precisely

support development of the innovative materials asassembled. This autonomous control technology in thesementioned above, Bridgestone is promoting diversification

processes enables us to create tires that are thinner, lighter,of resources and development of sustainable materials

and rounder, leading to improved product uniformity. Thisutilizing recycled and renewable materials. For example,

autonomous control technology has already beenin the NTT INDYCAR® SERIES in 2022-2023, we introduced

introduced at our plants. We also plan to introduce it at 20

tires made with natural rubber derived from guayule tofactories globally during the 24MBP period to drive the shiftsome races. In the 2023 BWSC, we supplied tires thatto Smart.

achieved recycled & renewable material ratio to be 63%.
Looking ahead to the future, Bridgestone will accelerate

BCMA Supports “Ultimate Customization”
by ENLITEN

the development of sustainable tire technology, whileleading to build a carbon-neutral production structurefrom motorsports tires through co-creation with partners.

The starting point for value creation in BCMA is on-site R&D

Furthermore, we will take on the challenge of evolving

and manufacturing. We evolve R&D and manufacturing to

Bridgestone’s technology innovation at an even fasterthe next stage by approaching the essential issues of R&D andpace, from R&D and manufacturing for motorsports tires

manufacturing at Genbutsu-Genba (being on-site), improving

as a starting point.

productivity, and further promoting the shift to Green &Bridgestone 3.0 Journey 2024 Integrated Report51

24MBP Business Shaping Scenario

Create Good BusinessIn the third business shaping scenario of “Create good business”, we take on the challenge to balance social value and customer
value creation, gain competitive advantage and create corporate value by reducing business cost across the value chain,developing a new premium tire business model with channel power reinforcement, and establishing sustainable premium brand.

Reduce Business Costs Across the Entire Value Chain
Bridgestone E8 Commitment

EnergyEcology

Efficiency

In the 24MBP, Bridgestone aims to reduce businessEconomyOverall picture of business cost reduction

costs by a total of approximately 100 B JPY through fiveactivities, including BCMA, shifting to “Green & Smart”,
steady productivity improvements mainly at production
sites linked with “create good tires”, in addition to global

BCMAprocurement in the upstream of the value chain and global
SCM (supply chain management) logistics transformation in
the downstream.

Shift to Green & Smart
Steady on-site productivity improvements

Global procurement

Global SCM logistics transformation

24MBP (2024-2026)

52

Global Procurement
Streamline development and supply chain by sharing modules
Primary effect: Reduce changeover of materials, parts, and equipment byproduct and streamline development by sharing of modules

In global procurement, we pursue streamlining supply
chain and benefits from our scale merit based on building

Secondary effect: Benefit from evolution of R&D and manufacturing by BCMA
deployment such as improved capacity in production process and reduced
workload at production sites

relationships of trust and co-creation of value (win–

Shift to Green: Reduce energy Gentan-i (energy consumption per unit)

sustainable procurement in addition to reducing business

Shift to Smart: Improve productivity by promoting automation

cost, we will strengthen our comprehensive partnerships

Improve productivity by reducing direct material losses and equipmentinduced losses benefiting from thorough streamlined production,
also maximizing production capacity of existing equipment.

win) with our global strategic partners. Furthering ourcollaboration with global strategic partners in terms offor sustainable value creation.

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

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

Over 100 B JPY level in total

Bridgestone 3.0 Journey 2024 Integrated Report53

24MBP Business Shaping Scenario: Create Good Business

Sustainable Procurement
Bridgestone is striving to realize a sustainable society and tobuild foundation of sustainable value creation across the

Taking into account the changing business environment,

value chain simultaneously. We are focusing on sustainable

Bridgestone has placed an enhanced focus in procurement

procurement of natural rubber, in light of its impact on

activities on the creation of new value, including ESG, insociety and business. Natural rubber is a key raw material in

addition to conventional value centered on QCD (Quality,

tire manufacturing and is an essential renewable resource

Cost, Delivery). We believe it is important to reinforce

for producing high-quality tires. Also, it is a renewabledialogue with our suppliers and co-create new value, withresource that provides livelihood opportunities for millions
of people around the world. It is said that more than 6

the “Bridgestone E8 Commitment” as the axis.
For example, regarding natural rubber, one of the
raw materials for which there are high social demands

million people are involved in the cultivation of natural
rubber. Therefore, efforts toward sustainability of natural
rubber are recognized as our crucial management issue forbusiness continuity.
Most natural rubber is cultivated by farmers in Southeast
Asia, where rubber trees are planted on small farms andfor sustainability, we are working collaboratively with
our suppliers to improve traceability and are actively
working to solve social issues throughout the supply
chain, including smallholder farmers. We will continue
to deepen our cooperation with our suppliers toenhance sustainability.

large plantations. Demand for natural rubber has beensteadily increasing globally over the years, and we believethat sustainable procurement requires increasing yields andimproving the livelihoods of small farmers while protecting
forests.
In 2022, Bridgestone formed the Capacity Building Task
Force, bringing together relevant functions to strengthen
capacity building initiatives for smallholders. Leveraging thetechniques and knowledge accumulated from ourMasashi Omae
Director
Global Procurement Divisionexperience in managing our own natural rubber farms, in
2023, we provided trainings and technical support tosmallholders, reaching 5,640 smallholders, and otherprojects organized in support of increasing production

Capacity Building Projects with WWF

volume as well as income diversification. In order toaccelerate the corporate initiatives, we have set the global
strategy with a medium-term goal, which is to provide

In 2024, Bridgestone, in partnership with WWF Japansupport for 12,000 smallholders aiming to increase yields

Indonesia, launched a project to provide technical training

and the livelihoods of small farmers and protect forests by

towards that contributes to improved yields of natural rubber

2026. The goal is in line with Global Platform for Sustainable

smallholders in Riau and Jambi provinces in Indonesia, with a

Natural Rubber (GPSNR)

view toward medium-term cooperation. We plan to conduct a

standards.

Our sustainable procurement initiatives are grounded in our
Global Sustainable Procurement Policy

and aligns withseries of technical training sessions in 2024, ranging fromland preparation and nursery to natural rubber latex coagulum

our goal of using 100% sustainable materials1 by 2050 andcollection by cup lump. In the first quarter of 2024, experts

beyond. We established the goal and KPI of 100% of Tier 1

from our natural rubber farm in Indonesia and Technicalsuppliers will have acknowledged the revised Global

Center in headquarters trained 10 smallholders from Kuantan

Sustainable Procurement Policy. (As of March 31, 2024, 87% ofSingingi Rubber Farmers Association (APKARKUSI) in Riau

Tier 1 tire material suppliers had done so.)province and five smallholders from Jambi province on

1. Bridgestone defines sustainable materials as materials “1) that come fromresources with a continual supply, 2) that can be used as part of our businessover the long-term, and 3) that have a low environmental and social impact overthe lifecycle from procurement to disposal.” For details on sustainable materials,
see below

tapping techniques, fertilization and pruning, and disease

Websitetrainees as instructors, and establish an arrangement to2L ong-term environmental vision (2050 and beyond): Towards 100%
sustainable materials
https://www.bridgestone.com/responsibilities/environment/resources/

2. Suppliers that supply materials directly to Bridgestone

control. With the aim of further expanding the impact ofactivities, Bridgestone will standardize yield improvement
techniques tailored to various farm conditions, train these 15
disseminate these techniques to more smallholders. Throughthese efforts, we will contribute to the sustainability ofnatural rubber.

54

and

executive committee member, taking part in the Capacity
Most of our member farmers are conventional and have

Building and Smallholders Working Group, being actively

not had an opportunity to learn the relevant skills to

involved in the discussion around GPSNR’s Sharedproduce natural rubber, including taking care of young

Responsibility Framework, and also GPSNR’s Assurance

rubber trees, tapping, coagulating and collecting cup

System. Our active contribution will lead to help thelumps, and fighting disease.

industry tackle the vast and complicated issues in ensuring

I really appreciate Bridgestone and WWF for providing
the training for the farmers to learn such skills. It gives
us understanding in Good Agricultural Practices ofnatural rubber production.
With regular, continuous and comprehensive followup training in efforts to maintain the existence anddevelopment of natural rubber, we expect the training
will ultimately increase the income and livelihood ofrubber farmers as well as sustainable natural rubber
production in Kuantan Singingi Regency.

a sustainable natural rubber supply chain.

Preparation for EUDR Compliance
Bridgestone has set up a global structure in order to
respond timely and swiftly to the EU Deforestation
Regulation (EUDR) requirements and is also actively
engaging with industry networks, such as GPSNR andEuropean Tyre and Rubber Manufacturers’ Association(ETRMA), to clarify and compile a common industry viewon the content of regulations and support smallholders
who support production.

Enhancing Traceability of Natural Rubber
Supply Chain
Syoffinal
Advisor of APKARKUSI(Kuantan Singingi Rubber
Farmers Association)

Our commitment to the continuous improvement of our
natural rubber supply chain’s traceability is unwavering.
Since 2019, we have closely collaborated with suppliers tofoster a deep understanding of the significance of supply
chain mapping, particularly down to the smallholder level.
By 2023, we achieved a significant milestone: 34% of our
natural rubber supply chain was traceable to smallholders
based on supplier self-declarations. By integrating digital
tools, we aim to gain a more comprehensive and accurate
understanding of our supply chain.

Training scene of tapping techniques and medicine application

Global Platform for Sustainable Natural Rubber (GPSNR)
https://sustainablenaturalrubber.org/

Global Sustainable Procurement Policy
www.bridgestone.com/responsibilities/social/procurement/pdf/Policy_English.pdf

Global Platform for Sustainable
Natural Rubber
GPSNR, a multi-stakeholder organization serves as an

W WF Japan
https://www.wwf.or.jp/eng/European Tyre and Rubber Manufacturers’ Association (ETRMA)
https://www.etrma.org/

effective platform for collaboration, sharing resources andknowledge, and uniting Bridgestone’s efforts in enhancing
sustainability of the natural rubber industry with other tiremakers, automakers, smallholders, processors, andproducers, civil society.
Bridgestone donated 60,000 USD to GPSNR to support
initiatives led by GPSNR for smallholder capacity building
to be conducted in 2023. In addition, Bridgestone plays
multiple roles in GPSNR including being a founding andBridgestone 3.0 Journey 2024 Integrated Report55

24MBP Business Shaping Scenario: Create Good Business

Global Supply Chain Management / Logistics Transformation
EnergyBridgestone E8 Commitment

Ecology

Efficiency

EconomyIn Bridgestone’s global supply chain management, Bridgestone focuses on premium production in response to the expansion
of ENLITEN and PS HRD tire sales. While promoting local production for local sales in PS and TB tires as our principle, we arebuilding a structure which aims for global optimization by adapting with agility and flexibility to changes and geopolitical risk.
Within the 24MBP, the ratio of local production for local sales is planned to be 90% for PS and 80% for TB globally.
Based on this premise, Bridgestone EAST contributes to our global business as global premium tire supply sites. In
particular, Japan plays the role of supporting the premium tire business in global as core of manufacturing, producing PS and
TB premium tires and tires for aircraft and mining, which require high technological capability.

Focus on Premium—Promote Building Supply Chain Management which Responds to Premium Focus and Change
24MBP
Ratio of local
production for
local sales (global)
Ratio of premium
tire production(global)PS

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

TB
90%

ENLITEN ratio (PS)
2023: 4% → 2026: 40%

80%
ENLITEN ratio (TB)
2023: 5% → 2026: 35%

HRD ratio (PS)
2023: 45% → 2026: 55%

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

Bridgestone EAST –Responds to growing market• Reinforce production capacity for India PS
premium tires⇒ Strengthen position as a market leader
Place Japan as the “core of manufacturing”
Support the premium tire business globally
Main export products

Bridgestone EAST
Ratio of AC & OR
tires productionin Japan• High-difficulty specialties tires that require technological &comprehensive capabilities: AC & OR tires• PS & TB premium tires

80%

Growing Market: India Premium Tires
In India, a growth market, as part of the 24MBP, we will
invest in expanding production capacity to 10 million tiresIndia PS Premium Tire Production(Indore + Pune Plant)by 2026, to strengthen our market leader position basedon expansion of premium tire sales volume, sales mix, andmarket share of PS premium tire.
Bridgestone established our Indore Plant in 1996

Production volume
ENLITEN production ratio
HRD tires production ratio(17 inch and above)

To a scale of 10 M units in 2026

Production
volumeApprox. 130%
vs. 2021

and Pune Plant in 2013, and has built a strong businessfoundation based on Genba (on-site) and local production
for local sales. We continue to focus on PS premium tires

HRD tires ratio
Approx. 25%

and maintain and reinforce our market leader position
through strengthening our lineup of Dan-Totsu products by

ENLITEN ratio
Approx. 20%

introducing new ENLITEN products in 2024, strengthening
our sales channels, especially family channels and strategic
partners, and strengthening our brand power linked withsustainable global motorsports activities.

56

2021

2022
21MBP

2023

2024

2025
24MBP

2026

Global Supply Chain Logistics Transformation:
B-DirectThrough global supply chain logistics transformation,

Spread the Benefits Upstream andDownstream in the Supply Chain—Maximize Effectiveness and Efficiency
Across the Entire Supply Chain

which we have named B-Direct, we promote to reducebusiness cost and create social value and customer value.

In addition to logistics transformation, we are pursuingThis will be done by realizing production close to where

maximization of effectiveness and efficiency across the

products are sold, lean inventory, increased ratio of direct

entire supply chain, including enhancing global procurement

delivery, and Green & Smart logistics, linked with BCMAin upstream of the supply chain while improving sales

and DX.

forecast accuracy by strengthening sell-out management indownstream of the supply chain. We will create value

Supply Chain Efficiency (Inventory Reduction/
Local Production)
Link between the expansion of BCMA deployment andimprovement of manufacturing flexibility– Promote in producing tires close to place of demand– Efficient production planning linked to sales timing
through improvement of manufacturing flexibility
Reduce inventory

Customers and Factories Directly Connectedwith Data and Products

globally, however particularly in Japan, including throughnew challenges such as maximizing sales opportunities andstrengthening links with production through improved
demand forecasting for winter tires using AI.

Creating social value linking with businessWe contribute to sustainability, including becoming
carbon neutral, by streamlining the supply chain andpromoting green logistics through B-Direct.

Strengthening the SCM platform through DX– Direct connection with customers’ system andinventory data to realize timely supply (direct
delivery) from Bridgestone’s plants to customers

Promote Green & Smart Logistics
Green Logistics:– Introduce EV trucks, warehouses with solar power
generation– Reduce CO2 emissions through more efficient marinetransport
Smart Logistics:– Promote introduction of automated equipment in
Improvement of safety and efficiency
warehousesof warehouse operations

Through these efforts, we plan cost improvements ofapproximately 10% in 2026 from 2023.

Bridgestone 3.0 Journey 2024 Integrated Report5724MBP Business Shaping Scenario: Create Good Business

New Premium Tire Business Model: Strengthen Channel Power
Bridgestone E8 Commitment

EnergyEcology

Efficiency

Extension

EconomyEase

The key to “create good business” is channel power. As part of the new premium tire business model, we are focusing value
creation by expanding our retail & service solutions network, which combines family channels and strategic partners, mainly
in North America and Japan, linked with “create good tires” with a focus on fusion of ENLITEN and BCMA.
We aim to amplify the value of our Dan-Totsu products during customers’ tire use, enhancing customer experience value (UX)
by staying close to them and recommending better tires and better use of tires, and enhancing retail sites as the important
touchpoints with customers.
 trengthen Channels which Create Social Value and Customer Value, being Attentive to Customers and Markets: Realize
S
Reinforcement of Earning PowerUP

Channel power Family channel + strategic partners

Enhance value
Create value
Improve sales mix(Retail & service solutions network: Increase customer experience value)

Equity stores in the U.S.

Equity stores and family channel in Japan

Strategic partners
Equity stores: Approx. 2,220 stores* in 2023
Approx. 2,240 stores in 2026

BtoC
(For PS)

BtoB(For LT & TB)

Improve business quality- Develop a new store format that improves
customer experience value through real x digital- Real: Enhance sites- Digital: Promote DX of business systems
Develop new channel in collaboration withstrategic partners

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

Base technology for
R&D and manufacturing

Ultimate customization
Differentiation
New premium
Base technology for
product design

Enable cost reduction indevelopment and production,and improve agility

Strategic partners
B-select (for PS):
2023: Approx. 800* ⇒ 2026: Approx. 1,000- Be attentive to customers more than ever on-site
Reinforce channel through real x digital:- Restructure wholesale sites ⇒ Shift to retail- Launch e-commerce “Bridgestone tire online store”
Strengthen channel in collaboration with strategic
partners

Enhance service network linked with “TPP”
solution and retread
B-Select (for TB):
Approx. 400* ⇒ 2026: Approx. 500—Enhance being attentive to customers on-siteand solve their problem—

Enabler that supports growth of the premium tire business and solutions business

Expandtire performance
spider chart“Sharpen Edge”

Fusion Business cost reduction(Reduce cost +environmental impact)

Simplification

DOWN

Increase product power— Generate customer delight —Newbrand power

Dan-Totsu R&D
and manufacturing
power

Globalprocurement power

Global
SCM power

Co-creation withsustainability partners* PS: Passenger car tires, LT: Light truck & bus tires, TB: Truck & bus tires * As of the end of 2023

U.S. Retail Equity Stores Business:
Take on the Challenge of a New Store Format
Evolving by Real x Digitalenhancing EV maintenance, and charging service, andconducting EV maintenance training for store technicalstaff, linked with ENLITEN, “New premium in the EV era”. We
are also reinforcing our sustainability efforts by introducing

In the U.S. retail equity stores business, we are taking on
the challenge of developing a new store format evolving
by the combination of real and digital capabilities,
strengthening to provide premium customer experiencevalue and to contribute to sustainability. First, in 2024, we
conduct an initial trial. We are enhancing digital service
which completes the entire customer experience fromproposal of optimal products & services, order, operation
appointment, payment, to after service, seamlessly on theapp. We are also promoting to strengthen premium tires
and service specialized for EVs through such initiatives:58

New store format in the U.S.

solar power panels and advanced LEDs, optimizing energy
use such as air conditioning, and recycling end-of-life tires
and oil at retail stores. We identify services that can provide
value to our customers through conducting the PDCA cycle
and are gradually expanding to 2,200 equity stores in the
U.S. in 2025 and 2026, leading to improve the quality of ourservices.

Creating social value linking with business
For the new store format in the U.S., in addition
to adding value to the customer experience weprovide, we are also strengthening our provision ofsustainability and social value, such as by installing
solar panels.

At Bridgestone Retail Operations in the U.S. we continue to drive innovation in the automotive
aftermarket. Our next-generation retail experience will elevate end-to-end customer satisfaction
through efficient, digital solutions and a modern, physical store environment. Trust will be built
through the transparency, reliability, and expertise of our 20,000 retail teammates. As we lookahead to an exciting retail future, we will evolve our service with customers at the center.

David Nientimp
Vice President
Marketing, Merchandising and Retail Transformation, Bridgestone Retail Operations

Global Expansion of Our Retail & Service
Solutions Network

Strengthen Japan Retail Business:
In Japan, we are expanding B-Select, a new network of
stores accompanying each customer on-site and providing

Globally, we are expanding our retail & service solutions

the high-quality services and solutions. We are also

network by real x digital. We are improving the quality

strengthening our efforts to provide optimal proposals

of business in the retail & services business whileand high-quality services through connecting directly

strengthening our contribution as an enabler of growth forwith customers through the Bridgestone tire online store,

the premium tire business and the solutions business.

leveraging “real” and “digital” capabilities.

Global Expansion of our Retail & Service Solutions Network

Approx.
Network for PS

19,400Americas

Approx.

9,300

Japan

Approx.

1,800

Approx.
sites

Network for TB

Europe, Middle East,
and Africa

Approx.

3,500

Americas

Approx.

Asia-Pacific,
India, and China

Approx.

4,700

4,700

Japan

Approx.

1,200

7,900

Approx.
sites

Europe, Middle East,
and Africa

Approx.

1,200

Network for OR

130

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

Asia-Pacific,
India, and China

Bridgestone + Otraco

Approx.

Approx.

900

sites

70 sites

Digital platform

Tire monitoring system

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

Digital fleet solutions

Retread tire production
management system

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

Bridgestone 3.0 Journey 2024 Integrated Report5924MBP Business Shaping Scenario: Create Good Business

Build Sustainable Premium Brand: Reinforce Sustainable Global Motorsports
Bridgestone E8 Commitment

EnergyEcology

EmotionOur motorsports activities are positioned as our “origin” as a tire manufacturer. Our motorsports activities started with ourparticipation in the first Japan Grand Prix in 1963, expanded globally through our challenges in a wide range of races such as
participation in Formula 1®, and marked our 60 th anniversary in 2023. What we refined through such challenges—our “Passion
for Excellence”, our tire development expertise, monozukuri (R&D and manufacturing) power, brand power and talent—makeup the foundation of our premium tire business to this day. The contribution to the brand has been particularly significant,becoming the driving force that enables Bridgestone to be recognized as a global premium brand.
In the 24MBP, linked with the reinforcement of sustainable global motorsports activities, we will support value enhancementby evolving Bridgestone from a premium brand to a “sustainable premium” brand built with Bridgestone and ENLITEN.
Bridgestone will continue to empower each and all to achieve their best and aim to be essential to the future of mobility.

Towards a Sustainable Premium Brand:“Passion to Turn the World”

for excellence,” and accelerating innovation, as well as our
passion to support a sustainable mobility society together
with our partners, through motorsports. By demonstrating60

In marking the 60 th anniversary of our motorsports

our challenge and pursuit of excellence, including ouractivities, we reaffirmed our passion for motorsports, andefforts towards sustainability, we strive to foster empathy

expressed our determination to evolve these activities

and trust among our stakeholders. By proving our value asplacing sustainability at the core with our new message,

sustainable premium, and being recognized for it by our“Passion to Turn the World”. The phrase encapsulates

stakeholders, we enhance our brand value in alignment

Bridgestone’s passion to race, passion to win, “challengewith the business strategies in each region.

Leading to Drive Sustainability
We aim to transform the entire company by leading toContribution to the Technological
Development of ENLITEN Generation 2
as a “Mobile Laboratory”

drive sustainable value creation starting from sustainableglobal motorsports. We will first drive sustainability acrossLeveraging sustainable global motorsports as a “mobile

the entire value chain of motorsports tires all at once, fromlaboratory”, we will drive development of ENLITEN Gen 2

raw material procurement to recycling.

technology, which is scheduled to be launched in the market
from the 27MBP. In the Bridgestone World Solar Car

Value Chain Initiatives across Motorsports Tires– Raw material procurement:
Recycled and renewable material ratio:
Aim for 65% or more

Challenge, an event featuring solar-powered cars that
Bridgestone supports as the title sponsor, we plan to
introduce motorsports tires equipped with ENLITEN Gen 2
technology in 2025. Meanwhile, in the Bridgestone FIA Eco– Production and Logistics:
Take the lead in promoting carbon neutrality
Production using 100% renewable energy
CO2 reduction through green logistics(in land and sea)

Rally Cup, where ordinary drivers participate in zero-– Recycling:“Renew” tires to raw material
Strive to realize chemical recycling

sustainable technology through our participation in the ABB

emission vehicles, we are not only supporting EVs but also
taking this as an opportunity to listen to the voices of ourtire users, linking the event to development of ENLITEN
products and technology. Furthermore, we will refine the
FIA Formula E World Championship, which will start fromthe 2026-2027 season, as sole tire supplier.

Bridgestone World Solar Challenge
As a forerunner in Bridgestone’s efforts toward sustainable global motorsports,
Bridgestone has been the event’s title sponsor since 2013. In the event held in October
2023 in which we marked 10 years of our sponsorship, we introduced ENLITEN-equippedtires for the first time in motorsports. Staying close to participating teams to deeply understand the harshconditions of driving across approximately 3,000 km from Darwin to Adelaide in Australia with limited electricity
from solar power as well as the characteristics of solar cars, we empowered the best performance of theteams who fitted our tires, by customizing the performance that sharpens edge in high rolling resistance, wear
resistance and light weight. Furthermore, we were able to demonstrate our sustainable technology at the sametime, by doubling the recycled and renewable material ratio to 63% from the previous race (2019). Regarding thetransportation of tires, too, we worked with DHL to realize carbon-neutral transportation. We will continue to
evolve for the next competition.

The BWSC is an extraordinary collaboration of bright young minds driven by a passion
to realize a greener, cleaner future. Through designing new technologies for sunpowered electric vehicles, the vehicles themselves are spectacular, however theimportance lies in the many innovations developed by the students, that are later
adopted across multiple industries. It is incredibly inspiring to be a part of.

Joanne Hayes
Head of Sustainability and Corporate Communications,
Bridgestone Australia and New Zealand

Bridgestone 3.0 Journey 2024 Integrated Report6124MBP Business Shaping Scenario

Create New Business Sowing Good Seeds for the Future
The fourth business shaping scenario is to “create new business sowing good seeds for the future”. Bridgestone will sow
good seeds beyond the 24MBP and create new business which generates social value and customer value.

Solutions Business
EnergyBridgestone E8 Commitment

Growth Business
Ecology

Efficiency

Extension

EconomyBridgestone’s Mobility Ecosystem

Reducing CO2 through tires for
EVs and fleet operation optimization

EnergyBridgestone

Ecology
Maximizing resource productivity
by maximizing retreading cycle

Optimizing fleet operations

Efficiency

Data collection from mobility system
Tire Data

Mobility Data

Tire pressure,temperature databy tire monitoring

Vehicle data, vehicle
operation data, othermobility related data

Co-creation

DigitalUnique analysis algorithm
powered by big data

DATABASE / ALGORITHM
Optimize customer operations
Evolve from tire wear prediction
to durability prediction

62

Engineering Chain
Dan-Totsu products

Understanding of society/customer’sBuild Bridgestone’s Mobility Ecosystem

Creating social value linking with businessIn solutions business, which is positioned as our growth

The solutions business will create sustainability
value throughout the tire value chain, from“produce and sell” to “use”. In the 24MBP, we willcontribute to reducing CO2 emissions, at the stageof tire use, in truck and bus solutions in North
America and OR/AC solutions, which are positioned
as strategic businesses, while continuing toreinforce retread, which significantly contributes
to improving resource productivity. Through these
activities, we will commit to advancing sustainabletire technologies and solutions that preserve theenvironment for future generations - Ecology inthe Bridgestone E8 Commitment.

business, we take a challenge on amplifying value at thestage where customers use tires and providing new valuethat includes solving customer pain points and contributing
to sustainability, in line with the Bridgestone E8
Commitment. We amplify the value of Dan-Totsu products
and use them as the basis for amplifying the trust of society,partners, and customers. By building these relationships oftrust, we will expand solutions provided with both real anddigital by having customers and partners share the data andamplifying its value. Through these efforts, we aim to build
Bridgestone’s mobility ecosystem.

E8 Commitment

Maximizing economic value across operations

Ease(Tire inventory, management of vehicle and maintenance, etc.)

Extension
Proposing optimal tire usage
Contributing non-stop mobility

Preventing sudden trouble and traffic
accidents Supporting safe operations
with peace of mind

EconomyCommercial BtoB solutions

Mobility tech business
Dan-Tostu Solutions“Support” vehicle operation systems/“Strategic business”

society/mobility systems

Customer-oriented / Genba on-site “Real” information

Dan-Totsu network

Dan-Totsu service

Field engineering

Optimal retread

business issues, Solutions planning capability, Visualization of concrete effects

Real

Bridgestone 3.0 Journey 2024 Integrated Report63

24MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Accelerate Value Creation Centered on RetreadFirst of all, the foundation to expand the solutions businesses
is retread business, which bridges premium tires as DanTotsu products with solutions. Among them, aviation tirebusiness is the strategic starting point for the retread
business, for which we already provide Dan-Totsu products,
multiple retread, and tire wear prediction solutions
leveraging digital capabilities. We will utilize the expertise
acquired here for the TB retread business. In addition tostrengthening Dan-Totsu products by improving durability
and wear resistance as base performance looking ahead ofretread, we aim for maximizing the tire value by increasing
the number of retread and deepening the linkage with fleet
operation management to use tires safer, longer, better andmore efficiently.
Retread is the business model which also contributes tosustainability. With an assumption that each customer willapproximately twice of resource productivity, and canuse Bridgestone tires three times, one new tire with fuelreduce to the approximately half of CO2 emissions.

efficiency that will retread twice, in comparison with three
new tires, can reduce to the half of the amount of raw
materials at a stage of production, can increase

24MBP - Next stage -Premium tireAC

Dan-Totsu productTo maintainhigh market share

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

RetreadSolutionsCo-creation with JAL

Multiple retread

Wear prediction solutions
leveraging tire data & flight data

Strengthen
multiple retread

Be attentive and supportiveof customer problems

through big data analysis

Maximize productivity and economic value of airlines’ operation

Respect forbeing on-site

Leverage know-how

Japan & North America

TB“New premium in circular business era”

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

Strengthen
Enhance service
Europe & Asia

Restructure & rebuild

From wear prediction solution
to durability prediction solution

Expand multiple retread

Link with themobility solutions

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

Value creation by linking with sustainability business model: Carbon neutrality & Circular economy* TB: Truck & bus tires, AC: Aircraft tires

64

Mobility Tech Business “Strategic Business”
Bridgestone expands the solutions business by focusing oncommercial BtoB solutions which have Dan-Totsu products,
solid service foundation developed on site and strong realsuch as retread.
Commercial BtoB solutions mainly consist of three parts;
truck and bus solutions, mining solutions, and aviation
solutions, and we will build as mobility tech business which
creates new value as strategic business by the fusion ofstrong real and digital. In particular, our mining and aviation
solutions leverage our strong real such as Dan-Totsu products
utilizing our strong R&D and manufacturing capability andfield engineering being close to Genba (on-site), based on
which we have built strong foundations of trust with ourcustomers and partners. By sharing data from them andanalyzing it with digital capability and building uniquealgorithms, we will evolve tire wear prediction into tire
durability prediction solutions. We are continuously
reinforcing our efforts to ensure that customers can use
tires safer, longer, better, and more efficiently.

Commercial BtoB solutions
Establish mobility tech business in North America— Especially “Fleetcare” program
Reinforce logistics solutions for the last mile
— an area of demand growth
Truck & bus

Premium Tire

Tire-centric
solutions

Mobility
Solutions“Strategic business”
Expand solutions based on new premium “MASTERCORE”
Mining solutions

Build value creation through real x digital — new challenge

Establish
mobilitytech business

Strategic starting point to establish
solutions business model including retread
Aviation solutions

Bridgestone 3.0 Journey 2024 Integrated Report65

24MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Truck and Bus Solutions: Mobility Tech Business in North America—“Fleetcare”
In North America, by strengthening linkage between,

Furthermore, we will reinforce solutions for last-mile

premium tires, retread, and mobility solutions, we will

logistics in North America, an area of demand growth.

enhance the “Fleetcare” program that provides solutions in

Last-mile logistics, where light trucks move through urbana package tailored to their pain points through staying

areas, undergoes repeated stop-and-go, causing

closer to customers. By doing so, we will build the mobility

significant burden on tires and premature wear. As

tech business.

unexpected tire replacement and maintenances are

Bridgestone has been working to improve the synergy

required frequently, decreasing vehicle utilization and not

between its mobility solutions business, which amplifies

being able to level maintenance cost are some pain points

the value of tire data and mobility data, and its premiumthat customers face.

tire business and other solutions businesses. As a first

We will solve this by offering the “Fleetcare” program

step, we began offering the “Fleetcare” program, which

tailored to the unique problems of last-mile logistics, whileprovides premium tires, retread, maintenance services,being attentive to customers on-site (Genbutsu-Genba)

and fleet management in one package, at Webfleet

mainly through field engineering. In the second half ofsolutions in Europe from 2022, and have accumulated the2024, we plan to launch a new ENLITEN equipped product,

expertise and have tested aiming for establishment of

which has been customized for last-mile logistics withbusiness model.

improved wear resistance performance and case durability

In the 24MBP, we will expand the “Fleetcare” program inlooking ahead of retread. Based on this Dan-Totsu product,

North America, where we have a strong TB business

we will contribute to maximizing the productivity offoundation such as Dan-Totsu products, retread, a service

last-mile logistics operations by offering retread, high-network for fleets, and a fleet customer base, while also

quality tire inspection and maintenance services as well as

leveraging the expertise fostered in Europe. By combining

an efficient fleet management leveraging the Azuga’ssuch strong foundation with Azuga, a digital fleet solutions

platform, as one package to customers. In addition, we

provider acquired in the U.S. in 2021 and with mobility

will maximize the economic value for our customers by

solutions that offers in collaboration with strategic

adopting a payment scheme based on mileage. We will

partners, we will promote value creation with both real

gradually introduce this offering and establish ourand digital.

business foundation during the 24MBP period.

DigitalPremium tire
“New premium in circular business era”

Mobility solutions
Fleet management leveraging
vehicle data

High-durability, wear resistance,and low rolling resistance

Launch of products equippedwith ENLITEN (cumulative total)

ENLITEN equipment %8 products in 2023
9 products in 2024
Approx. 40 products in 2026

3% in 2023
Approx. 5% in 2024
Approx. 40% in 2026

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

Premium tire

RFID
Tire data × Mobility data

RetreadRetreadMaintenanceservice

Service network for fleets

1,200

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

RealCustomer base of premium tire & tire-centric solutions

66

Fleet
management• Monitor location information and propose efficient operation& optimal routes• Visualize fuel consumption & CO2 emissions and propose
improvement Manage driver and enhance• safe-driving level (Linked with benefits for vehicle insurance)
North America as of the end of 2023:

370 K connected vehicles
Wear prediction
Evolve todurability prediction+ Collaboration with strategic partners(enhance scale and solutions)

Collaboration &sharing know-how
Europe as of the end of 2023:

840 K connected vehicles

Customer base of mobility solutions

Mining Solutions
In mining solutions, we take on the challenge of expanding
tire durability prediction solutions by building uniquealgorithms leveraging AI, with Bridgestone MASTERCORE as
Dan-Totsu product at the core and focusing on “co-creation”
based on trust with customers.
As the core of our mining solutions, Bridgestone
MASTERCORE as Dan-Totsu product realizes ultra-highdurability based on the combination of our new unique
technologies including steel cord manufactured in-house.
Bridgestone MASTERCORE enables us to provide the optimal
performance customized to each customer’s need and theoperating condition of each vehicle by improving durability

on-site (Genbutsu-Genba) and digital such as AI.

and other desired tire performance without sacrificing

In order to prevent tire damage due to heat, which isother performances. Based on customer recognition ofa major pain point for mining companies, we offer thetheir value, MASTERCORE tires are being used in

optimal maintenance timings and operation routes byapproximately 90 mines as of the end of 2023. Also at thepredicting tire durability with our unique algorithm

stage of “use” tires, on-site field engineering activities thatleveraging AI. This algorithm is built by shared vehicle

deeply understand customers’ pain points, we have also

information based on trust with customers and data

strengthened our “real” capabilities by expanding theincluding tire temperature, tire pressure, vehicle location

network sites for mining solutions to 130, mainly on Otraco,

information and driving speed and history of tire fittings,

which was acquired in 2021.

which can be obtained from Bridgestone iTrack, a next-

By combining such strong “real” capabilities with digital,

generation of tire monitoring system for mining vehicles. In

we continue to evolve mining solutions that contribute tothis way, we contribute to maximizing the productivity andthe optimization of mining operations. As a new challenge

economic value of mining operations by reducing tire costsin the mining solutions, we are strengthening tire wear

and vehicle downtimes. Moreover, we contribute toprediction and evolving it to tire durability prediction

sustainability by improving resource productivity, since

solutions by building unique algorithms leveraging the fusion

using tires safer and longer reduces the number of tiresof extensive experience and knowledge of tires cultivatedused. We began offering this new mining solutions services
starting in July 2023 at the Spence copper mine (Pampa
Norte operation) where BHP Group Limited owns in Chile.
In the 24MBP, we contribute to maximizing productivity
and economic value of mining operations as well assustainability, thereby amplifying trust with customers andexpanding business.

We are promoting solutions initiatives at Genbutsu-Genba (being on-site) that contribute to enhancedsocial and customer value at the Spence mine owned by the BHP Group Limited in Chile. By supporting
the provision of optimized tire maintenance and ensuring appropriate tire pressure, we have not only
helped our customers to use their tires safer and longer, but have also contributed to sustainability inaddition to reducing vehicle downtime. Although there were difficulties to overcome in this project, wewere able to achieve it through thorough discussion and co-creation between a variety of internal
departments and the Spence mine. Moreover, this project gave me many insights regarding on-sitemining operation. Going forward, I will continue to promote solutions initiatives, valuing the trust we
have with customers.

Sven Ermter
Mining Solutions Development & Engineering Director
Bridgestone Mining Solutions Latin America

Bridgestone 3.0 Journey 2024 Integrated Report6724MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Aviation Solutions
In aviation solutions, the strategic starting point of solutions
business, Bridgestone reinforces multiple retread with
Dan-Totsu product power as an axis, and expand thedeployment of solutions such as tire wear and durability
prediction that combine real and digital capabilities, basedon co-creation with customers. By doing so, we contribute tomaximizing productivity & economic value of airlines’
operations, as well as sustainability. Premised on safety andpeace of mind above all, aviation tires are required to beable to withstand harsh conditions in areas such as heavyload, high speed, and a wide range of temperatures fromhigh to low. This is therefore a domain where Bridgestone’s
core competences in “mastering rubber” and “mastering

aerospace, as well, and in 2023 we received theroad contact” can be leveraged to the fullest.

Sustainability Award, which is presented to suppliers that

By combining multiple retread with such Dan-Totsu

have made significant achievements in the field of

products, we have already established a circular businesssustainability. We continue to expand the deployment ofmodel that maximizes tire value per unit and contributes tosolutions, based on the foundation of the solutions businesssustainability, however we now face the challenge of

built up until 2023.

further improving the number of retreading. In efforts tomeet this challenge, we were able to improve the numberof retreading as a result of pursuing both steady
improvement for working and business quality at on-siteand manufacturing DX. This initiative has been shared at the
Global TQM Conference as a good example of working &business quality improvement, which is the top priority in“Craftperson skill” /Date regarding tireʼs using condition &Manufacturing datatire inspection data after usage

the 24MBP.
In addition, we reinforce contribution to sustainability
across the entire value chain, including efforts to realize
carbon neutrality and a circular economy. These efforts

Enhancement of manufacturing accuracy⇒Further improvement of the number of times that can be retreaded

were recognized by Airbus, a pioneer in the domain of

As an important initiative which contributes not only to business, but also to sustainability,
we have been promoting improvements in the number of retreading of aircraft tires. In
the project, we installed sensors in the building process to measure production data foreach tire, and analyzed the data by linking to the inspection data of each returned tire. Bymaking the tacit knowledge of the craftsperson skill into explicit knowledge, and byimproving the accuracy of the parts that have a large impact on the number of retreadingof aircraft tires, we were able to further improve this number. We will contribute tocreating further value for aviation tires from the production standpoint.

Akihiro Ichikawa
OR/AC Production Technology Department (Winner of the TQM Conference Grand Prix)

68Build Mobility Ecosystem that Responds to New Mobility
Bridgestone E8 Commitment

Extension

Empowerment

In order to respond to new mobility such as EVs and“automated driving technology”, and promote theautomated driving, we take on the challenge including

development of tire technology and next-generation ofstrategic investments through coordination and co-creation

mobility solutions that contribute to improved safety andwith various partners and advance the building of a mobility

productivity of mobility that incorporates automated driving

ecosystem.

technology and expertise. By accelerating these efforts, we

As part of these initiatives, we invested in TIER IV, Inc., awill build a mobility ecosystem that responds to new mobility.

leader in open-source automated driving software aimed foran automated driving society, in 2022, and have been moving
forward with co-creation in the two areas of “automateddriving technology” and “solutions services that support
driving”. Regarding “automated driving technology”, we arepromoting activities at “B-Mobility”, a mini-test course within
the BIP (Bridgestone Innovation Park in Kodaira, Tokyo).
Regarding “solutions services that support driving”, westarted demonstration tests concerning the safe driving of
automated vehicles from February 2024, on public roads in
Shiojiri City, Nagano Prefecture. We are installing “Tirematics,”
a digital tire management tool that is one of the solutions

Automated Driving Demonstration Tests at B-Mobility

Bridgestone offers, on Japan’s first mass-produced automatedEV buses, which are currently undergoing technologicalverifications by TIER IV under driving conditions equivalent to
Level 2, with a view to obtaining Level 4 automated driving
certification. Through this implementation, we aim to verify
the value of solutions services that support the safe andefficient driving of automated vehicles in addressing issues
such as safe driving, expense reduction, extension of driving
distances and improvement of electricity consumption, andreduced downtimes and predictive management. In the
future, we will expand demonstration tests to include
co-creation related to research and development ofAutomated Driving Demonstration Tests on Public Roads

A Mobility Ecosystem that Responds to New Mobility

Avayler

Tyrata

CarlQ

REACH

Peregrine.ai

POS platform provider(Europe)

Tire sensor & data
management service
provider(U.S.)

Autonomous
driving related
payment platform
provider(U.S.)

Service provider for fleets(Notify dealer whena vehicle breaks down)(U.S.)

Road safety
solutions provider(Europe)

Retail & service
solutions businessAlso continue exploring co-creation
partners through venture capitals
North America / Europe

Mobility solutions business“TIER IV”
(Fleet management system)(Retread, repair)Autonomous driving
technology development(Japan)KodiakWrenchYoshi

Chargylize

Bia

Mobile vehicle
maintenanceservice provider(U.S.)

Mobile vehicle
maintenanceservice provider(U.S.)

EV solutions provider(Europe)EV smart charging
solutions provider(Europe)Solutions for EVs

Autonomous long-haul trucking
technology development(U.S.)May Mobility
Autonomous driving
technology development(U.S.)

Solutions for autonomous vehicles

Bridgestone 3.0 Journey 2024 Integrated Report6924MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Exploratory Business: Sowing New Seeds
Bridgestone E8 Commitment

EnergyEcology

Ease

Empowerment

In the exploratory business, which we have positioned as sowing new seeds for future sustainable growth, we start byproviding social value with sustainability at the core. In the 21MBP, we first focused on exploration of technology. In the 24MBP,
we promote the exploration of business models for the next stage, with co-creation as its axis.

21MBP

24MBP

27MBP

“Sowing new seeds” – Providing social value & sustainability at the core –Exploretechnologies(small & medium scale)

Explore business model – Demonstration /small-scale commercialization phase -No air inflation required “Next-generation tire”

Demonstration phase
Contribute to build Bridgestone’s mobility ecosystem
Various mobility-related tools• Autonomous driving system• Advanced digital sensor development, etc.

Demonstration phase

Explore tocommercialize

Contribute to evolution of sustainability
business model• Enhance & diversify renewable resources- Guayule (mainly in the U.S.)• “Renew” tires to raw material- Recycle (Japan and U.S)

GuayuleDemonstration phase
New challenge leveraging corecompetencies
Soft-robotics

Small-scalecommercialization phase

Soft-robotics

Guayule Business: Diversification of Natural
Rubber Sources

Recycle Business: “Renew” Tires to
Raw Material

In the U.S., we are promoting the guayule business to

In the recycle business, which “renews” tires to raw material,

diversify natural rubber sources, a renewable material,

we are promoting co-creation with ENEOS Corporation underthrough co-creation and open innovation with the U.S.

the “Green Innovation Fund Project” of the New Energy andDepartment of Energy, local NGOs, and external partners.

Industrial Technology Development Organization (NEDO), in

Unlike the para rubber tree, the cultivation of which isJapan. We have been promoting elemental technologies

geographically concentrated and is susceptible to diseasedevelopment since 2021, and began recycle pyrolysis tests

and climate change, guayule can be grown in arid regions,of end-of-life tires in 2023. During the 24MBP, toward its

making it a viable alternative to natural rubber. Cultivating

commercialization we are promoting technology

guayule can also contribute to the greening of these arid

verification and also start studying the construction of a pilot

regions. Development of guayule-derived tires, which wasdemonstration plant. In addition, we continue initiatives

studied in the past in Firestone, was resumed in earnest in

for recycling in the U.S. and for mining tires as well.

2012. In 2022, we supplied race tires made from guayulederived natural rubber at the NTT INDYCAR® SERIES, anddemonstrated their performance. We will continue to takeadvantage of the NTT INDYCAR® SERIES under a concept
of “mobile laboratory” to explore technologies forcommercialization.
Demonstration machine (Kodaira, Tokyo)
Recovered carbon black (left) andtire-derived oil (right)

70*O btained as a result of work (JPNP21021)
commissioned by the New Energy andIndustrial Technology Development
Organization (NEDO).

Soft-robotics: A New Challenge Leveraging
Bridgestone’s Core Competencies
In the soft-robotics business, which has become a corporate
venture “Bridgestone Softrobotics Ventures” asopportunities for diverse talent, especially for young talent,to shine and place to demonstrate entrepreneurship, weare exploring business model based on co-creation with awide range of partners to “realize a future where humanand robot co-exist” under the slogan “Soften the Future”.
Soft-robotics is soft robot which utilizes artificial rubber
muscles that leverage the know-how gained from thedevelopment and production of tires and hoses and aredesigned to work alongside humans. The “TETOTE” soft
robotic hand, incorporating AI software from our partner,
Ascent Robotics Corporation, makes piece-picking possible,
successfully grabbing a variety of objects. “TETOTE” wasawarded as the “2023 Good Design Award” by the Japan
Institute of Design Promotion, and the concept model ofthe soft robotic hand won the “iF Gold Award” at theinternationally prestigious “iF Design Award 2023”. In
addition, we are taking on new challenges such as presenting“umaru,” a prototype of “robots that immerse your body andmove your mind,” at the International Robot Exhibition 2023.
In the 24MBP, we will continue to evolve initiatives for the
next phase of small-scale commercialization.

“Next-Generation Tire” that doesn’t Need AirFilling: AirFree—Supporting Local Community—“umaru,” A Prototype of “Robots that Immerse Your Body and Move Your Mind”
at International Robot Exhibition 2023

simulation technology and tire technology, we have evolved
it to new material and structure. In 2023, we started ademonstration experiment for ultra small EVs throughAs part of our efforts to sow new seeds in tires, we create

co-creation with Idemitsu Kosan. In addition, from 2024,

value by evolving the AirFree Concept, into “AirFree”, a

we start demonstration experiments on public roads in the“next-generation tire” that doesn’t need air-filling, with avicinity of Bridgestone Innovation Park in Kodaira, Tokyo.

view to social implementation. Bridgestone has been

In the future, by pairing AirFree with automated driving,uniquely developing the AirFree Concept since 2008, valuingwhere tires become more important, we aim to solve

sustainability such as leveraging materials that can be easily

mobility issues in local communities due to an aging

recycled, with our core competencies – resin material

population, rural depopulation, and limitations ontechnology leveraging “mastering rubber” and the

movement caused by labor shortages.

technology of “mastering road contact”. Leveraging digital
Journey to Develop AirFree
Adapt to recycling

2008–
1st generation,“safety and peaceof mind”

Easy-to-recycle materials/retreadable material
that can easily be recycled / Adapted to retread

2013–

technology evolution: new material and structure

2nd generation, improvement in“safetyand peaceof mind” and”Passionfor Excellence"“ride comfort”

2023

3rd generation, “co-creation”
Evolve to “providing social value”“Continue to support the mobility of people and goods”

2024

Start of demonstration experiment on public roads

Respond to various needs for the mobility ofpeople & goods and Take on the challengeof diversifying the mobility to support:• AirFree Concept for bicycles• AirFree Concept for walking-area BEVs
(Used in the Tokyo Olympics and Paralympics Games)

24MBP: Evolve from a concept to“AirFree” looking
ahead to social implementation

Bridgestone 3.0 Journey 2024 Integrated Report7124MBP Business Shaping Scenario: Create New Business Sowing Good Seeds for the Future

Expanding Our Mission: From Local
Communities to Outer Space
Research and Development of Lunar Rover Tireis the surface of the moon.
In April 2024, we exhibited a second generation tireconcept model for the first time at our booth within the“Japan’s Space Industry” pavilion organized by the JapanWe leveraged the technology cultivated through “AirFree”

Aerospace Exploration Agency (JAXA) at the 39th Spacefor the research and development of lunar rover tires andSymposium, the largest space-related symposium in thedeveloped a new second-generation tire.

U.S., held in Colorado Springs, U.S.. By demonstrating

In line with Bridgestone’s fundamental principle of “Tires

Bridgestone’s new challenge and pursuit of excellence tocarry life,” we are working on research and development ofour partners, we gain their empathy to expand our space

lunar rover tires from 2019. Bridgestone, which has known

business network and create opportunities for co-creation

the roads around the world and has supported the evolution

with various partners in Japan and overseas.

of all forms of mobility on Earth, now supports theCurrently, a lunar rover equipped with Bridgestone tires is

evolution of space mobility from the ground up to the roads

expected to start operation on the moon after 2031, which isof outer space as the next stage. Bridgestone’s technology

the 100th anniversary of Bridgestone. We are enhancing ourinnovations, which continue to support the evolution oftechnology innovation, and aiming to keep empowering themobility, has been refined in “extreme” environments such

mobility of people and goods with safety and peace of mind

as motorsports. Through this project, we aim to become

from the ground up toward our 100th anniversary.

essential to the future of mobility by taking on the challengeof the new “extreme” environment of human activity, that

Support mobility in local communities through safety, peace ofmind and sustainable technologies
Safe and peace of mind mobility in local communities by Empowering Blue
Establishing technologies for social implementation andexploring business models-creating a mobility system
Co-creating with partners: small mobility x autonomous driving systems

Expanding missions from community to space

Providing safety and peace of mind in extreme environments and“supporting space exploration with the dreams of humanity on our shoulders”
Bridgestone, which has known the way of the world and supported the evolution of
all kinds of mobility on Earth contributed to development of human beings byknowing the way of space and supporting the evolution of space mobility

Co-creating with various partners in the space business network
Contributing to international missions ― Promoting technology exploration ―“Tires Carry Life”: Supporting All Forms of Mobility, from Local Communities toOuter Space, with Safety and Peace of Mind
AirFree is a next-generation tire that does not need air-filling. We are working with membersof various teams across organizational boundaries to establish technologies and explore
business models with a view toward social implementation around 2026. AirFree technology isalso leveraged in tires for lunar terrain vehicles. Expanding our mission from serving the local
community to the extreme environment of outer space, Bridgestone will continue to take onchallenges in order to be essential to the future of mobility.

Narumi Kawada
Global OE Strategy & New Mobility Business Development Department

72

Diversified Products Business: Sharply Focus on Areas Where Bridgestone’s Core
Competencies Can Be Leveraged
Bridgestone E8 Commitment

EnergyEcology

Extension

Ease

In the diversified products business, which Bridgestone sharply
focuses on areas where Bridgestone’s core competencies can beleveraged, we aim for the next stage by promoting improvementof profitability.
Our strength in the premium hydraulic hose business lies inthe business model that links with original equipment,
replacements, and solutions. To strengthen our premium
strategy, we reinforce our Dan-Totsu products by leveraging ourcore competencies cultivated through tires, such as “masteringforming hybrid polymer” for managing rubber and othermaterials and “mastering high pressure” that leverages tire

FLEXTRAL, Premium Hydraulic Horses in North America

technology, and also reinforce production and supply structure
through investment for increasing production capacity at Thai
plant. To further strengthen our solutions, we acquired the U.S.
mobile service provider Cline Hose & Hydraulics, LLC (“Cline”
reinforce investment in production) through our U.S. subsidiary,
Bridgestone HosePower, LLC (“BSHL”). By adding Cline’s network
to our 47 company-owned service locations throughout the U.S.,
we expand our mobile van solutions network in the U.S. andreinforce our solutions business.

Premium Hydraulic Hoses: Mobile Van Services

Overall Picture of Diversified Products BusinessBusinessCore competence

Support operations in various industries

Technology core masteringforming hybrid polymer

Hydraulic/high performance hose
Rubber track
Support lifestyles thatprioritize safety and peace of mind

Plastic piping
Seismic isolation rubber
Support the shift to EV
from the ground up

Air spring (U.S.)
Support sports life and mobility life thatinspires excitement and spreads joy

SportsCycle

Golf ball
Golf club
Power assisted bicycle

Strong brand power
fostered by long history
and track record

Hydraulic hoseseismic isolation rubber

Rubber track

Premium product power(high performance,high added value)
Ability to make proper
technological proposal
based on Genbutsu-Genba
and customer focus

Air spring

Plastic piping

Creating social value linking with business
Bridgestone’s seismic isolation rubber contributed to the continued provision of medical care during the 2024 Noto
Peninsula Earthquake. Keiju Medical Center, located in Nanao City, Ishikawa Prefecture, is a core hospital in the Noto
Peninsula region. Of the four buildings that make up the hospital, three are earthquake resistant, and one building, whichis the newest, is seismically isolated using seismic isolation rubber from Bridgestone. While the earthquake-resistantbuildings temporarily lost its capacity to function due to internal equipment damage and toppling of instruments, theseismically isolated building was undamaged and continued to function, allowing the personnel to carry out emergency
surgeries following the earthquake and to support medical services in the local community.

Bridgestone 3.0 Journey 2024 Integrated Report73Building a Foundation for Sustainable Value Creation
Building a Foundation for Sustainable Value Creation
Bridgestone is working to establish its unique Sustainability

foundation of our Sustainability Business Model andBusiness Model by incorporating sustainability into theachieved results that exceeded the goals. In 24MBP, we

corporate strategy and Mid Term Business Plan. Our

promote the integration of sustainability into our business

Sustainability Business Model links our business with thescenario, interconnecting our business activities withrealization of carbon neutrality and a circular economy

sustainability initiatives, and building a foundation for

across the entire value chain, from “produce and sell” andsustainable value creation as we move toward a sustainable“use” of products to their “renewal” to raw materials.

growth stage.

In 21MBP, we promoted activities that form theProduce and sell—Premium tire businessCore businessSupport mobility
with peace ofmind and safety

Upstream supply chain
tree plantingo ug hth rstated areasa l s de v ao v innio

Inc reasea nd a f C O
for 2 reesta mt

CO2 reduction in mfg. fields

R&D

Procurement

Production

Sales

Tire usage

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iversify ren

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rc
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�������e����CO2 reduction effect by resource circulation

CO2 reduction effect by resource circulation

Raw material recycling / External sales

End-of-life tire collection

Ca

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intenance / Rep
Ma
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vi
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,

Vehicle Operation

CO2 reduction in manufacturing fields

Contribution to
CO2 reduction atcustomers’ usageg c o ll e c t i o n

Renew—Recycle business

Use—Solutions business

Circular Economy

Carbon Neutrality

Growth business

2026

Recycled & renewable material ratio
39% above2026

CO2 emission reduction (Scope 1, 2)
reduce more than 50% (vs 2011)

2050

100% sustainable materials

2050

Carbon neutrality

Nature Positive*
Focus on “initiatives for sustainable use of natural rubber & water resources”
which are directly related to our business
Evolving to a regenerative business model* It means halting and reversing the loss of biodiversity and natural capital in order to put nature on the path to recovery. The intent behind is to reduce the impact of businessactivities on biodiversity and natural capital, maintain and restore nature’s bounty, and transform socio-economic activities for sustainable use of natural capital.

74

Progress and Targets of Initiatives, Sustainable Value Creation Linked toBusiness Shaping Scenarios
Progress of Initiatives

account the increase in CO2 emissions associated with the
expansion of production and sales volume. We will

Bridgestone places sustainability at the core of our

promote stable procurement of renewable energy,

management and business, and accelerate transformation

improve productivity in conjunction with BCMA, andwith the aim of achieving sustainable growth as a company

steadily improve energy intensity. This also will lead towhile contributing to the realization of a sustainable

strengthening our earning power.

society. We are working to establish a Sustainability
Business Model that links our business model with efforts
to achieve a circular economy and carbon neutrality acrossthe entire value chain. We aim to create both social value

Change in ratio of renewable energy (electricity)
100%
2030
Challenge forand customer value through our business and achieve awin-win-win relationship among society, our customers,
and Bridgestone. We have also promoted initiatives toward

80%

More thannature positivity since 2023 and have been evolving into a

Result for 2023

60%

more regenerative business model.

100%

Goal for 2026

69％

70%

50%

Goal for 2023

40%

Initiatives toward Carbon Neutrality
By 2030, Bridgestone has set clear targets for reducing its

20%

total CO2 emissions (Scopes 1 and 2) by 50% compared with
2011, and to realize carbon neutrality by 2050. In 2023, we

0%
2019

achieved a 57% reduction, which exceeds the 2030 target.
Result in 2023
the ratio of

CO2 emissions reduction(Scope 1, 2) from 2011 level

2020

2021

2022

2023

2024

2025

2026

2030 (FY)

Transition plan for carbon neutrality

57%

Mid Term Business Plan
(2021-2023)

Mid Term Business Plan
(2024-2026)■ Accelerated the introductionof renewable energy■ Stable procurement of renewable energy■ Technology development &verification towards Scope 1 reduction■ Achieved CO2 emission reduction
target level

CO2 emissions
in a business-as-usual scenario

A major contribution to this significant reduction was
the increase in the ratio of renewable energy (electricity).
In each global region, we are promoting the installation ofContinuous improvementof energy efficiency
100%

solar panels and the shift of electricity purchased from2026

outside sources to electricity derived from renewableenergy sources. We have achieved a ratio of 69% in

50%

2030
targetBring forward
the target year

reduction

reduction

Increase of renewableenergy (electricity) ratio

50%

Transition to
low-carbon fuels/
electrification of
manufacturing process50%

renewable energy use, in comparison to the 2023 target ofprevious year. With a plan to achieve over 70% by 2026, we
will work toward the sustainable use of renewable energy.

Innovation of
manufacturing
process, etc.

Setting next
mid-term target

50%, which was a significant increase from the 26% in the

2050
2011

2026

2030

Carbonneutrality

In order to achieve carbon neutrality by 2050, it isnecessary to balance business growth and CO2 emissions
reduction at an even higher level, while taking into

Bridgestone 3.0 Journey 2024 Integrated Report75Building a Foundation for Sustainable Value Creation

Bridgestone is working to contribute to CO2 reduction

Result in 2023

across the entire value chain, from “produce and sell”, “use”
to their “renewal” to raw materials. Our goal for 2030 is to

Ratio of materials
using recycled andrenewable resources

contribute to the reduction of CO2 emissions (base year:2020) through the entire lifecycle of our products, services,
solutions and recycle by at least five times the amount of

39.6%

CO2 emitted by our own production activities (Scope 1 and
2). In 2023, the amount of reduction contribution increased

To expand and diversify recycled and renewable materials,

to 1.9 times the amount of emissions through rolling

we will strengthen our efforts through motorsports, a

resistance improvement in premium Dan-Totsu products“mobile laboratory”, such as providing race test tires using

and proposals for optimal operating routes for mobility

guayule as a raw material for the NTT INDYCAR® SERIES insolutions such as Webfleet and Azuga. Our 24MBP’s goal is

the United States, and we will gradually expand to tires forto contribute to reduction of CO2 emissions by more thanthe markets.

three times of our CO2 emissions by 2026.
We are also working to strengthen supplier engagement
to reduce the total amount of Scope 3 emissions. In

100%

Concept Tire1

Over
90%

recognition of this stance, we achieved a place on the “Alist” of CDP Climate Change and the Supplier Engagement in“From Laboratory
to Circuit”

Tire for BWSC2

63%

80%

2023.
70%

Initiatives toward Realization of a
Circular Economy

90%“From Circuit
to Street”

TURANZA EV for the
North America
passenger car market

50%

60%

2030

50%

Aiming for

In order to realize a circular economy, we are promoting
material development such as expanding and diversifying
renewable resources using guayule, improving resource2026

We promote the establishment of a circular businessmodel through initiatives across the value chain, from the

Over

39%

37%

39%

Over

40%

30%

productivity by expanding the retread business, andexploring technologies for tire recycling.

2023

40%

2020

2021

2022

2023

2024

2025

2026

2030

(FY)

※1 通常のタイヤ試作プロセスで生産でき、実車走行試験が可能なレベルの性能を有しているタイヤ※2 Bridgestone World Solar Challenge

1 Tire that has achieved production via the standard tire prototyping process, andthat has a level of performance suitable for drive testing
2 Bridgestone World Solar Challenge“produce and sell” and “use” to their “renewal”.
In retreading, we plan to increase the TB retread ratio to

Initiatives to Promote Nature Positive World

approximately 50% by 2026, which is linked to the
expansion of solutions that allows customers to use tires

Becoming Nature positive requires a comprehensive

safer, longer, better, and more efficiently.

approach and transformation that encompasses not only
nature conservation, but also diverse perspectives andProgress Toward the Shift to
Sustainable Materials

issues such as efficient use of resources, sustainableproduction, and climate change countermeasures. We haveincorporated such approach into our Sustainability BusinessToward the realization of a circular economy, Bridgestone

Model and are evolving it into a more circular andhas set mid to long-term targets to achieve a 40% recycled

regenerative approach. In 24MBP, we focus on activities forand renewable material ratio by 2030, and to achieve 100%the sustainable use of natural rubber and water resources

sustainable material use by 2050.

that are directly linked to our business.

In 2023, we achieved 39.6% of recycled and renewale

With regard to water resources, which are essential formaterial use, exceeding our target of 37%, leading to athe continuation of our business. To ensure fair andreduction of 558,000 tons equivalent of new input raw

sustainable use of water resources, we have developed andmaterials.

implemented water stewardship plans (WSP) that are
tailored to local conditions for each of our production sites
located in water stress areas. In 2023, the formulation of
WSP was completed at all 17 targeted sites, and as a resultof the activities, water withdrawal at the targeted sites
decreased by 8.1% from the previous year.
* See

76

Minimizing footprint on the website for details

Enhancing Initiatives for Sustainable Use of
Natural Rubber

rubber with our unique approach rooted in GenbutsuGenba.
* SeeSustainable Procurement on the website for details.
https://www.bridgestone.com/responsibilities/social/procurement/

Natural rubber, one of the key materials for tires, is produced
from Para rubber trees. Para rubber tree production isconcentrated in the tropical rainforests of Southeast Asia andis supported by a complex supply chain that includes as many

Sustainable Value Creation Linked to Businessshaping Scenario

as 6 million smallholder farmers. We believe that building asustainable supply chain for natural rubber is important fromIn the 24MBP, we promote the integration of sustainability

a social and environmental perspective, as well as for the

into the Business Shaping Scenario and build a foundation

sustainability of our business. We are working withfor sustainable value creation, which also enable us tosmallholder farmers to improve productivity and achieve

create new values.

zero deforestation. Our goal is to partner with a cumulative

Our efforts toward carbon neutrality, circular economy,

total of 12,000 smallholders by 2026, each utilizing

and nature positive are linked to value creation in the core,technology developed at our own farms and know-how

growth, and exploratory businesses in the business shaping

effective in disease control. In addition to our efforts as a

scenario. We support sustainable initiatives andcompany, such as tree planting in devastated lands, we arestrengthening our sustainable structure and foundation byalso strengthening collaboration with GPSNR, a global

reinforcing business quality through new & true glocal

platform, WWF, a specialized organization, andportfolio management.

procurement partners to roll out activities that take into

For example, in our core business of premium tires, we

account not only environmental aspects but also social

will improve the various performance required of tires. This

aspects such as human rights. We will continue to take a

includes wear resistance, long life, and lower rollingcomprehensive approach to the sustainable use of naturalresistance, while also improving resource productivity andEarned the ISCC PLUS Certification for our own Natural Rubber Farm (Liberia)
Firestone Liberia’s natural rubber growing and processing facility is
the 16th facility in Bridgestone to receive ISCC PLUS certification*. Thisis the first natural rubber farm in the world to receive ISCC PLUS
certification, and was recognized for its efforts to reduce
environmental impact, use resources efficiently, and mitigate climatechange. The social aspect of the farm is also recognized for good
agricultural practices, such as ensuring adequate working conditions,compliance with local regulations, and promoting effective
management practices to promote continued growth andimprovement. The farm has been a model case in activities that
support local communities, such as supporting the rollout oftechnology developed on the farm to local smallholder farmers, andproviding and supporting medical care and education. The farm has
been in operation for more than 90 years and is a valuable asset for
Bridgestone’s sustainable natural rubber business.

* International Sustainability & Carbon Certification (ISCC): A certification system operated by the
ISCC organization for products manufactured using materials derived from biomass and otherEngaging with local communities as part of the on-site audit

recyclable materials or derived from recycled materials. Certification is based on assessments
against criteria for traceability through the supply chain.

Bridgestone 3.0 Journey 2024 Integrated Report77Building a Foundation for Sustainable Value Creationenergy intensity through “ultimate customization” byin Scope 3 through efficient real x digital driving and vehicle

expanding ENLITEN, our base technology for productoperation support.

design, creating value through BCMA, and shifting to green

Through these efforts, we aim to link business and& smart. In this way, we promote tire manufacturing thatsustainability, creating synergistic effects as two wheels,

improves customer value while reducing business costs andand promote the sustainable value creation, whileenvironmental impact, thereby contributing to thereinforcing our sustainability in structure and foundation.

achievement of our sustainability targets. In the solutions
business, we will increase the ratio of recycled andrenewable materials by expanding the TB retread tires
business, and also expand our contribution to CO2 reduction

Continue to provide social value and customer value
Achieve sustainability targets
Sustainability target in 24MBP: “Produce and sell” “Use” “Renew”

Carbon neutrality:
Further focus on improvement of “quality” including Scope 3 emissions
CO2 emission reduction (Scope 1, 2)
2026

TargetReduce more than

50 %(vs. 2011)

Premium tire business:”Produce and sell”

Core business

Create Good Tires

Circular economy:

2026

TargetSolutions business:“Use”

Growth business

Create Good Business

39% above
Exploratory business: “Renew”

Nature positive:
Reinforce support for smallholders of natural rubber

Focus on “initiatives for sustainable use of natural
rubber & water resources” which are directly related
to our businessInitiatives for reinforcing structure to cope with global management
risk and reducing future risk
% of suppliers setting SBT-equivalent CO2 reduction target (Scope 3)
Risk monitoring related to human rights and continuous improvement

2026

Target92%(CO2 basis)

78

Foundationfor value creation
toward sustainablegrowth stage

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

Strengthen the circular business model
Recycled & renewablematerial ratio

Sustainable Value Creation linked withbusiness shaping scenario

Create New Business,
Sowing Good Seeds

Create Good
Business Quality

Lay foundation
for the future
growthNew & trueglocal portfolio
management

Climate and Nature-related Risk Management and Responses to TCFD and TNFD
Bridgestone supports the Task Force on Climate-related

foundation for sustainable value creation by strengthening

Financial Disclosures (TCFD). Furthermore, we began

our efforts toward carbon neutrality, realization of aparticipating in the Taskforce on Nature-related Financial

circular economy, and nature positivity, while linking them

Disclosures (TNFD) Forum in March 2022. As the world

to our business.

becomes increasingly concerned about climate change andthe loss of natural capital, there is a growing movement
towards a decarbonized society, as exemplified by the Paris

Status of Compliance with TCFD and TNFD
Recommended Disclosures

Agreement. Additionally, efforts to achieve a naturepositive world, as outlined in the Kunming-Montreal Global
Biodiversity Framework, are gaining momentum. In thiscontext, we are working to comprehensively assess andmanage its dependency and impact on the climate andnatural capital, as well as the risks and opportunities

As a TNFD Early Adopter, Bridgestone began disclosing
information in line with TNFD recommendations in October
2023. The following is the status of our response on
recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) and the Taskforce on Nature-associated with climate change and the loss of natural

related Financial Disclosures (TNFD) version v1.0. The

capital, reflecting these in business strategy.
Based on our awareness of these risks and opportunities,
we will enhance sustainable corporate value and build afollowing information is also included in the 105th Annual
Securities Report [Approach and Initiatives on Sustainability].

Governance
Recommended disclosures

Status of Bridgestone’s Response

TCFD

TNFD

Board of Directors’ oversight ofdependencies, impacts, risks andopportunities• The Board of Directors receive and review regular reports on the status of sustainability initiatives, including
achieving carbon neutrality, contributing to a circular economy and progress toward being in harmony with nature.

Management’s role in assessing
and managing dependencies,
impacts, risks and opportunities• The Global EXCO, the highest level of corporate management, approves and manages the progress of mid-longterm strategies, targets and action plans, including achieving carbon neutrality, contributing to a circular economy
and progress toward being in harmony with nature.

Human rights policies andengagement activities, andoversight by the Board of
Directors and management, withrespect to Indigenous peoples,
local communities, affected andother stakeholders(TNFD recommended disclosure)• The Global Human Rights Policy and the Global
Sustainable Procurement Policy articulate
Bridgestone’s strong commitment to respect andsupport internationally recognized human rights
principles such as the UN Guiding Principles for
Business and Human Rights. The Global Sustainable
Procurement Policy contains minimum requirements
for suppliers to acquire or use land only by legalmeans in accordance with UN Declaration on the
Rights of Indigenous Peoples, and to follow Free,
Prior, and Informed Consent (FPIC) principles when
acquiring land and assessing any forest development
or creating forest management plans. We promote theimplementation of these policies within Bridgestone,
with suppliers, and across the supply chain.
• Bridgestone collaborates with the World Wildlife Fund(WWF) to study and develop a due diligence process
for ensuring the Company’s supply chain is incompliance with the Global Sustainable Procurement
Policy. On-site ESG audits are conducted for suppliers,
including natural rubber smallholders, using aself-assessment questionnaire developed inconjunction with WWF, and risks are evaluated. This
questionnaire includes inquires on the FPIC.
• Bridgestone establishes a grievance mechanism forthe natural rubber supply chain and publicly discloses
the standard operating procedure and status of eachgrievance. We use the grievance mechanism, among
others, to monitor any potential/actual issues related
to indigenous peoples and local communities’ rights inour supply chain.
• The Global EXCO approves and manages action plans andprogress for sustainability, including respect for humanrights, which are reviewed by the Board of Directors.

Bridgestone 3.0 Journey 2024 Integrated Report79Building a Foundation for Sustainable Value Creation

Strategy
Recommended disclosures

Status of Bridgestone’s Response

TCFD

TNFD

Bridgestone comprehensively assesses and manages its dependency and impact on the climate and natural capital,
as well as the risks and opportunities associated with climate change and the loss of natural capital. Dependencies,
impacts, risks and opportunities have been identified as follows.

Dependencies on climate and natural capital (Note)• Dependency on nature’s provision of water and biomass in the raw material procurement stage as well as climate
and healthy soil maintenance and regulating services provided by ecosystems.

Dependencies, impacts, risks andopportunities over the short-,
medium-, and long-term• Dependency on nature’s provision of water in the tire production stage.

Impacts on climate and natural capital (Note)• Impact of land use in the raw material procurement stage.
• Impact of water resource usage and waste generation in the tire production stage.
• Impact of greenhouse gas emissions, water resource usage, emissions to air, water and soil and waste generation
throughout the value chain.

Physical risks and opportunities related to climate change and loss of natural capital• Risks of stronger typhoons and increased frequency of flooding and drought, which pose the risk of interrupting
business activities.
• Risks related to the procurement of raw materials as a result of changing rainfall patterns leading to poor
harvesting of natural rubber.
• Risk of lower demand for winter tires due to reduced snowfalls.
• Opportunities to commercialize natural rubber derived from guayule, which grows in arid regions. Risks due topoor harvesting of natural rubber derived from Para rubber trees, which are found predominantly in tropicalregions.

Risks and opportunities related to the transition to a decarbonized society and a society in harmony
with nature
Impact on business model,
value chain, strategy, andfinancial planning• Risk of adverse effects on operating results and financial position, such as limitations on business activities andincreased costs, if R&D expenses required to meet the rapidly changing needs of society and customers do not
produce sufficient results when systems and regulations to combat climate change and loss of natural capital are
introduced (for example, carbon taxes, CO2 emission reduction obligations and emissions trading systems, andsystems and regulations related to low-fuel consumption performance of tires, recycling used tires, water
withdrawal and sustainable natural rubber, etc.).
• Opportunities associated with changes in competitive factors due to changes in mobility needs (for example,
increased demand for tires for electric vehicles, increased demand for tires and solutions that help customers
reduce CO2 emissions).
• Opportunities to commercialize the recycling business resulting from increased regulation around the recycling ofused tires.
(Note) This refers to the main areas of dependency and impact throughout the value chain of the tire business that were evaluated aseither “very high” or “high” in importance by the UN Environment Programme World Conservation Monitoring Centre (UNEPWCMC) and industrial groups using ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure).

Resilience of the organization’s
strategy, taking into considerationdifferent scenarios• Bridgestone assesses risks and opportunities based on multiple climate- and nature-related scenarios. It has
already begun to address those important risks and opportunities identified and will continue to do so on a regularbasis.

Locations applicable to direct
operations, upstream anddownstream• Expand CO2 absorption and fixation throughafforestation of degraded land

• Locations with high integrity
ecosystems and/or areas of decline
in integrity• Areas where biodiversity is of highimportance• Water stress areas• Areas where the organization is
likely to have significant potential
dependencies and/or impacts(TNFD recommended disclosure)80• Bridgestone regularly evaluates production sites
located in water stress areas with a risk of declining
water resources in terms of quantity and quality. As ofthe end of 2023, seven sites in India, Indonesia, China
and other countries were located in river basins
assessed as having “extremely high water risk.” A
water stewardship plan has been formulated and isbeing implemented at all these sites based on thewater situation is each location.

Management of Risks and Opportunities
Status of Bridgestone’s Response

Recommended disclosures

TCFD

TNFD

Process for identifying, assessing,and prioritizing dependencies,
impacts, risks and opportunities
in direct operations and upstream
and downstream value chain• Bridgestone strives to comprehensively and appropriately identify and address risks and opportunities across its
operation while considering the business scale and characteristics of each Group company. We identify risks andopportunities associated with climate and natural capital by considering dependency and impact throughout thevalue chain based on evaluations from ENCORE by UNEP-WCMC and others and the Business & Biodiversity
Interrelationship Map® released by Japan Business Initiative for Biodiversity (JBIB).

Management process• We are currently assessing ways to improve its management of business strategy risks and opportunities directly
related to the execution of the Mid-Long Term Business Strategy by setting up a dedicated annual risk
management process under the direct leadership of the Global EXCO, while operational risks related to day-today operations are overseen by the Chief Risk Officer (CRO), who is responsible for overall risk management andformulating risk response plans.

Integration into and informing
the organization’s overallrisk management• Identifying potential risks faced by each region and Bridgestone as a whole on an annual basis; clarifying
ownership for those risks not only for us as a whole, but also for each business, SBU and division; andimplementing risk management in an autonomous and continuous manner.

Metrics and Targets
Status of Bridgestone’s Response

Recommended disclosures
Metrics used in the assessmentand management of risks andopportunities

Metrics used in the assessmentand management ofdependencies and impacts

TCFD

TNFD

• Establishing targets and regularly monitoring CO2
emissions (CO2 emissions reduction in Scopes 1, 2, and3, and the reduction contribution of CO2 emissions
throughout the lifecycle and value chain of our
products and services) as one of the metrics forassessing and managing climate-related risks andopportunities.

• Bridgestone sets water withdrawal in water stressareas, environmental footprint (amount of hazardous/
non-hazardous waste and landfill, VOC emissions,
SOx/NOx emissions), and size of habitat management
area as metrics in the assessment and managementof nature-related risks, opportunities and impacts andregularly monitors status.

•W e evaluates the cost of CO2 emissions (US$100/tCO2)
and the effect of reductions based on internal carbon
pricing in order to assess the risks and opportunities
associated with an investment.
• Setting long term environmental vision (2050 and beyond) and mid- term target (2030) to achieve carbon
neutrality, contribute to a circular economy and achieve being in harmony with nature; evaluating and disclosing
performance every year.

Targets and performance inmetrics used in the managementof dependencies, impacts, risks
and opportunities• Setting targets toward 2030 to reduce our absolute CO2 emissions (Scope 1 and 2) by 50% compared with 2011
levels, contribute to global CO2 emissions reductions across the lifecycles and value chain (Scope 3) of our products
and services exceeding five times our operation’s CO2 emissions (Scope 1 and 2) compared with 2020 levels,
increase ratio of recycled and renewable material to 40%, and promote water stewardship plans to reduce water
risks at production bases in water-stressed areas.
• The main results for targets toward 2030 are as follows.
Priority items to be addressed
Establishment
and evolution of
the Sustainability
Business Model

Metrics

2022 results

2023 results

2030 targets

Develop readinesstoward carbon
neutrality

Reduce absolute CO2 emissions(Scopes 1 and 2) comparedwith 2011 levels

31%

57%

50%

Expand circular
economy businessactivities

Ratio of recycled andrenewable materials1

38.4%

39.6%

40%

1. Within total material weight for tire products including tire casing for retreading

Bridgestone 3.0 Journey 2024 Integrated Report81Financial Strategy
Financial Targets by Area & Business Portfolio
By focusing more on value creation in line with business shaping scenario based on new & true glocal portfolio management,
Bridgestone plans to achieve global revenue at the level of 4,800 B JPY (approximately 110% versus 2023), adjusted operating
profit at the level of 640 B JPY (approximately 130% versus 2023), and adjusted operating profit margin at the level of 13% (anincrease of approximately 2% versus 2023) by 2026, the final year of the 24MBP.
In terms of adjusted operating profit margin by business portfolio, we plan at the level of 16%, another higher level, by
reinforcing earning power and creating “new premium” in our premium tire business as core business. As growth business,the solutions business will improve its portion in our adjusted operating profit by 4% in 2026 and build a foundation forgrowth in the 27MBP. For both solutions business and diversified products business, we plan an adjusted operating profit
margin to be at the level of 8%, which achieves our assumed WACC of 5.5%.

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

Return to a strong Bridgestone capable of adapting to change

Remaining issues& new issues

True next stage

2026 —Final year of 24MBP—

2023 —Final year of 21MBP—
Core business

Growth business* Include revenue of retail

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

400.7
13.7%

Adj. operating profit
portion

82%

B JPY

Adj. operating profit
portion15%

Adj. operating
profitAdj. operating
profit margin

72.2
5.5%

B JPY

480.6 B JPY

13.2

B JPY

Adj. operating
profit margin

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

Adj. operating
profit margin

11.1%

Adj. operating
profitGrowth business

Solutions business tires in solutions business

Build foundation for growthof the solutions business

Adj. operating profit

Diversified products businessCore businessPremium tire business

Adj. operating profit
portion

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

Premium Tire Business Core Business
Financial Targets by Area

520
16 %

Over

B JPY
level

level

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

Adj. operating
profitAdj. operating
profit margin

120
8%

B JPY
level

level

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

13% level

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

25

B JPY
level

Adj. operating
profit margin

8 % level

4%

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

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

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

earning power. Particularly in North America, we are driving

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

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

by strengthening family channel, reinforcing collaboration

business and focus on PS premium as growth segment,with strategic partners and developing new channel. In

aiming to improve the adjusted operating profit margin.

Japan REP, we are also reinforcing our focus on premium

82

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

Growth area, the second home markets representing as

through channel rebuilding, including the shift to retail sites

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

expand its scale while improving profitability.

● New & True Glocal Portfolio Management Scenario

Core business - Targets Premium Tire Business        Adj. operating
profit margin

2023 Results
2026 Target

Specialties

North America

Specialties
North America

India

India

Japan China
REP

Japan REP

Indonesia

Indonesia

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

China
EuropeINDEX:
2023 = 100

110

120

130

140 (%)

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

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

2nd Stage of Rebuilding

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

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

begun the second stage of rebuilding in our Europe

Also, TB business aims to become profitable in 2025

business, China business, and Thailand business.

through business rebuilding. As for the OE business, we

As for Europe, where historically challenges have been

are strengthening our focus on premium vehicle model/

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

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

unit under focused management”. We executed rebuilding

on commercial BtoB solutions including Fleetcare program

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

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

to become profitable in 2026 due to the improvement of

We are also strengthening our structure to further focus on

profitability by rebuilding business that includes to streamline

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

sales and solutions. Regarding production, we will strive to

In addition, we will improve the organizational structure

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

to execute these measures.

adjusting its production capability to sales conditions.

China business withdrew from TB business and focus on

We will further reduce deficit & unprofitable sizes and will

PS premium tire business. Along with two production

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

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

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

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

business will become profitable at the latest in 2026,

plant in 2023 and consolidated our production sites.

through fundamentally reviewing the retail business with

We promote business rebuilding to focus on premium

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

Bridgestone 3.0 Journey 2024 Integrated Report83Financial Strategy

Solutions Business Growth Business
Financial Targets by Area

which has already secured a high profit margin, we are

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

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

the 21MBP.

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

which will become the mobility tech business, as a

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

retread, that are currently deficit, to become profitable.

In North America, where our retail and retread businessIn mining and aviation (specialties) solutions, we plan aalready have a strong foundation, we continue to reinforce

steady growth in both scale and profitability by combining

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

improve its adjusted operating profit margin by improving

Moreover, we are continuously strengthening mobility

business quality in stand alone business unit, and will

solutions of Webfleet and Azuga, and establishing mobility

contribute to the entire business in North America bytech business through expanding its scale, mainly in

expanding its functions as an enabler. In retread businessNorth America.

●
New & True Glocal Portfolio Management Scenario

Solutions Business          —Target —Growth business

Adj. operating
profit margin

2023 Results
2026 Target

North America
RetreadSpecialties
OR/AC

North America

Specialties
Azuga
WFS
North America
RetailJapan RetailJapan Solutions

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

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

EuropeRetread

INDEX:
2023 = 100

120

140

160

Revenue growth rate (2023→2026)

84

180

240 (%)

Capital Expenditure, Strategic Resource, R&D Expense● Capital Expenditure● Capital Expenditures: Strategic + Ordinary total (B JPY)

設備投資：戦略＋経常合計（億円）

Capital expenditure total (strategic + ordinary)Approx.

1,400 B JPY

Ordinary expenditure

Approx.

Strategic expenditure

Approx.

420(Approx. 1.4 times than in the 21MBP)

We are continuously strengthening our premium tire

430
Approx.

317.1
262

500

253.6

Approx.

Approx.

480

Approx.

273

243

Approx.

Approx.

269

222.8
205.7

business as core business, mainly for strategic capital
expenditure by clarifying firmly the content, effect and56.2

return on the investment.

2021

166.4

Approx.

2023

2024

94.3
2022
21MBP

Approx. 1,000 B JPY
Currency USD
exchange EUR

110 JPY
130 JPY

132 JPY
138 JPY

141 JPY
152 JPY

225

240

165
2025

2026

24MBP

Approx. 1,400 B JPY
135 JPY
149 JPY

130 JPY
143 JPY

130 JPY
143 JPY

Ordinary expenditure: Slight increase vs. 21MBP due to lease renewals for retailstores and warehouses as well as for distribution sites, in addition to the usual
investments in maintenance and renewal of equipment at plants● Strategic Resource

Total strategic resources

Approx.

780 B JPY

• Inject approx. 1.5 times than in the 21MBP: Continue reinforcing investment especiallyin the premium tire business• Carefully selected resource to less than 70% that of the 2030 Long Term Strategic
Aspiration (Approx. 1,200 B JPY)

■ Strategic Resource by Business Portfolio:

continuously strengthen resource related to establishing

Strategic resource that includes strategic capital expenditure

retail & service, retread, mining and aviation, and mobility

and strategic expense, will expand resource allocation totech business. These are the business that was clarified aspremium tire business that has a particularly high return“what to do” in the 21MBP. When timing of actual resource

certainty, from approximately 30% to less than 60% of theinjection comes, we will evaluate their returns and benefits

21MBP. In addition, for the solutions business, we willreasonably and decide for the executions.

戦略リソース金額（億円）● Strategic Resources
Amount (B JPY)

戦略リソースアロケーション● Strategic Resources
Allocation
21MBP

Strategic expenses, etc.

Approx.
Approx.

Strategic capital expenditure

247.2
80.8

135.6
79.4
56.2
2021

Currency
exchange

USD
EUR

Approx.

210

Approx.

166.4
94.3
2023

21MBP

132 JPY
138 JPY

50

60

IT infrastructure(21%)

Core businessCore businessPremium tires
161.8 B JPY

Premium tires
Approx. 450 B JPY

IT infrastructure(Slightly below 20%)

(31%)

Approx.

45.2

2022

Approx.

300

Approx.

(Slightly below 60%)

45

139.5

Approx. 520 B JPY
110 JPY
130 JPY

280

24MBP

141 JPY
152 JPY

Approx.

225

Approx.

240

165

2024

2025

2026

24MBP

Approx. 780 B JPY
135 JPY
149 JPY

130 JPY
143 JPY

130 JPY
143 JPY

Diversified products /Exploratory,
Foundations, etc.
(19%)

Diversified products /Exploratory,
Foundations, etc.
(Slightly below 10%)

Solutions total Growth business

Solutions total Growth business150.9 B JPY (29%)– Adapt to ENLITEN /MASTERCORE– Premium tire
production &development– BCMA– Green & Smart– Sustainability

Approx. 130 B JPY (Over 15%)– Retail & service (mainly in the U.S. and Japan)– Retread– Build mobility tech business (incl. enhancing mobility solutions)– OR/AC solutions

Bridgestone 3.0 Journey 2024 Integrated Report85

Financial Strategy■ Strategic Resource by Area:
While continuously injecting approximately 40% of our■ Strategic Resource by Start timing of the Returnof Investment:

resource to the Americas which supports our revenue andWe will allocate approximately 70% of resources to the

profit, Bridgestone will reinforce the investment in mining

projects where the start timing of the return of investment

and aviation tires that have high profitability mainly in

is short-term and mid-term, and will lay foundation forJapan where Bridgestone MASTERCORE as Dan-Totsu

future growth, ensuring balance. In addition, we will judge

product is developed and produced. This will expand its

the certainty of the return.

composition ratio approximately four times from 2% in the

Short-term: Premium tires, retail, retread

21MBP to less than 10% in the 24MBP. On the other hand, theMid to long-term: M ainly mobility tech business andinvestment in Europe where business rebuilding is executed
will limit its composition ratio to half of the 21MBP.

● Allocation by Area

戦略リソース金額（億円）

Total amount in 21MBP: approx. 520 B JPY
Global foundation area

Americas

130 B JPY (25%)

209.8 B JPY

Mining& aviation
12.5 B JPY(2%)

Allocation by start timing of the return of investment— 24MBP —Total amount in 24MBP: approx. 780 B JPY
Global foundation area
(Slightly below 25%)

(40%)

Americas(Slightly
below 40%)

Europe,Middle East,
and Africa
81.3 B JPY(16%)

Asia Pacific44.4 B JPY (8%)

Japan tire(10%)

● R&D Expense

Long-term
Slightly below
10%

Europe,Middle East,
and Africa(Slightly more than5%)
Asia Pacificslightly below 10%

Short-term
Slightly more than 30%

Foundation
25%

Mining& aviation(Slightly below
10%)

Japan tire
37.5 B JPY(7%)

R&D expense:

exploratory business* Strategic Resource by Start Timing of the Return of Investment:
Short-term: 24MBP, Mid-term: 27MBP, Long-term: 2030 and beyond

Mid-term
Slightly
more than
35%

Start timing of the return of investment
Short-term: 24MBP, Mid-term: 27MBP,
Long-term: 2030 and beyond● Total R&D Expense(B JPY)
R&Dリソース合計（億円）：経費

412 B JPY

• R&D expense for product and manufacturing technology
development: Approximately 400 B JPY(Continuously strengthening our investment at the levelof 3% versus revenue)• Solutions (for building retail and mobility tech businessin the U.S.): Approximately 12 B JPY

We will continue to strengthen R&D for premium tire

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

Approx. 126

Approx. 138

Approx. 2

Approx. 124

Approx. 148

Approx. 4

Approx. 134

Approx. 6

Approx. 142

business with a focus on developing technologies forour “new premium” ENLITEN/Bridgestone MASTERCORE
products, sustainable global motorsports tires, andproduction technology such as the shift to Green & Smart.
In addition, for the solutions business, we are strengthening
R&D initiatives globally, such as planning to develop new
retail format in the U.S. leveraging both real capability anddigital power as well as to develop R&D toward building
mobility tech business.

86

2024

2025

2026

24MBP: Approx. 412 B JPY
Currency USD 135 JPY
exchange EUR 149 JPY

130 JPY
143 JPY

130 JPY
143 JPY

Management Focusing on Capital Cost & ROIC
Utilization and Our Definition of ROIC

Global Investment Executive Meeting Committee. We haveestablished a system to evaluate the certainty of returns

Alongside ROE as the traditional management metric,

based on ROIC by setting hurdle rates that take into account

Bridgestone set ROIC that evaluates return on investment

country and business risk, and discussing them with theand capital efficiency as the most important management

global management team.

KPI in the 21MBP, and thus we are promoting management

Results and Remaining Issues in
ROIC Improvement Activities

focusing on capital cost. ROIC is a financial metric thatmeasures how much profit a company generates in relation
to invested capital in its business activities. The basic
formula used by Bridgestone to calculate ROIC is as follows.

As part of the 21MBP, we maintained our ROIC improvement
activities using the ROIC tree, however failed to reach our

ROIC =

Adj. operating profit (after tax)

global ROIC target of 10%. In the 24MBP, we will further

Working capital + Non-current assets(Invested capital)

reinforce the ROIC improvement activities as well as drive
reinforcement of earning power across the entire value
chain. By evaluating performance based on ROIC for each

Adjusted operating proﬁt (after tax): Fixed tax rate of 30%

business and region and implementing the PDCA cycle, weWorking capital: Notes and accounts receivable and other assets + Inventories‒ Notes and accounts payable and other liabilities (FY-end balance)

aim to achieve the level of 10% of our ROIC target, which

Noncurrent assets: Non-current assets excluding deferred tax assets(FY-end balance)

remains an issue from the 21MBP.
To achieve our goals, we are aiming for improvements in

ROIC Improvement Activities

each management item of the ROIC tree. Regarding grossprofit margin in the adjusted operating profit ratio, we are

To promote the adoption of this ROIC concept at on-site level

introducing Dan-Totsu products, expanding sales of premiumand facilitate the implementation of improvement activities,

tires, creating value by fusing “new premium” ENLITEN and

the Financial Strategy Division at the global headquarters

BCMA, and further reduce deficit and unprofitable areas. In

oversees global activities as the secretariat. In line with this,terms of operating expense ratio, we are continuing to reduce

we are initiating its implementation that values Bridgestone-business costs through global SCM logistics transformation

like Genbutsu-Genba (respect for being on-site) approach,and steady on-site productivity improvement, in addition tothrough sharing improvement case studies with ROIC

thorough cost management. On the other hand, regarding

ambassadors at TQM Conferences. In daily activities, wethe cash conversion cycle, which is a component of invested

promote autonomous improvement activities at each site bycapital turnover ratio, we are enhancing inventory

focusing on both the numerator (profit) and denominator

management to rapidly adapt to demand and sales(asset) and setting management items based on the ROIC

fluctuations. For fixed asset turnover, we are executing thetree. In addition, with a view to establishing a structure for2nd stage of rebuilding and further improving the efficiency

investment and resource allocation that focuses on capitalof existing assets through periodic reviews of land,cost, we have established Global M&A Executive Meeting andbuildings, and strategic shareholdings.

● 24MBP Targets Leveraging the ROIC Tree

ROIC (>capital cost)
2023

8.7%

2026

10% level

Gross profit margin

Adj. operating profit(after tax)*1

2023

7.8%

2026

9% level

Improvement

2026

2023

40% level

38.4%

Operating expense ratio
2023

2026

27.2%

Same as 2023

Deterioration

Cash conversion cycle*2

Invested capital turnover

2026

2023
2023

1.12
times

2026

1.15 times

161 dayslevel

150 days level

Fixed asset turnover2023

1.63 times*1 Fix tax rate of 30%*2 Cash Conversion Cycle (CCC) = Days of inventory outstanding + Days of sales outstanding – Days of payables outstanding

2026

1.65 times level
Bridgestone 3.0 Journey 2024 Integrated Report87Financial Strategy

Message from the Global CFO: Financial Capital Strategy
Enhancing Shareholder Returns through “Reinforcing Earning Power”
Financial Capital Strategy Towards Achieving
the 24MBPIn the 24MBP, Bridgestone will continue to undertake
management focusing on capital cost based on ROIC, ourmost important management indicator. We will strengthen
our business quality by driving improvement across theentire value chain, thereby striving to reinforce our earning
power as “cash in”. Regarding capital allocation as ”cash out”
while prioritizing sustainable growth and corporate value

Naoki Hishinuma
Global CFO
Executive Director, G Financeenhancement through “strategic growth investment”, wewill promote “maintaining an appropriate financial position”

enhancement through “strategic growth investment” toand “enhancing shareholder returns”. Especially forreinforce earning power, focus on value creation, and build

shareholder returns, we aim to continuously increasea sustainable premium brand, while “maintaining an

dividends per share in accordance with growth in adjusted

appropriate financial position” and “enhancing shareholder

operating profit to meet the expectations of our

returns” in accordance with the 2030 Long Term Strategic

stakeholders.

Aspiration as a roadmap.

Capital Allocation

allocate the strategic resources at the level of approximately

Regarding “strategic growth investment”, we plan to800 B JPY in the 24MBP, approximately 1.5 times that of theBridgestone regards the interests of our shareholders as an

21MBP, as well as expand resources mainly in the premium

important management priority, and follows a basic policy

tire business, which has high certainty of return. In termsof strengthening our management base in preparation forof “maintaining an appropriate financial position”, we will

future business developments while working to improve

drive improvements in capital efficiency, aiming for ROE atbusiness results. As for capital allocation, we are

the level of 11% and ROIC at the level of 10% by 2026, while

prioritizing sustainable growth and corporate value

maintaining financial soundness.

● Capital Allocation/ Shareholder Returns

Cumulative CF*
Approx.
1.6 times

Approx.

2,200 B JPY

Strategic
resources
Approx.
800 B JPY
Repayment of debt
Approx. 300 B JPY

Shareholder
returns
Approx.
500 B JPY

Ordinary
investments,
etc.
21MBP

24MBP

Cash in: Reinforce earning power* Adjusted, such as excluding strategic OPEX, etc.

88

Approx.
700 B JPY

Cash out:

24MBP: Approx. 800 B JPY■ Premium tire business: Approx. 500 B JPY■ Solutions business: Approx. 100 B JPY(Approx. 1.5 times that in the 21MBP) ■ IT / Foundations / Diversified products &Exploratory businesses: Approx. 200 B JPY

Approx.

1,400 B JPY

Strategic resources (strategic investments + strategic expenses)

Maintain an appropriate financial position:
While maintaining financial soundness, balance capital efficiency
Capital efficiency /Capital cost

ROE: 2026 11% level
ROIC: 2026 10% level

Maintain & enhancecredit ratings

2023 Moody’s: A2
S&P: A

Enhance shareholder returns: Increase dividends in a stable andcontinuous manner
Dividend: With target dividend payout ratio of 40%, continuously increase dividend per share
Dividend per share 2024 dividend forecast: MIN 210 JPY
2026 dividend (24MBP): MIN 250 JPY level

Ordinary capital expenditure: 200-300 B JPY/year level throughout the 24MBP period

Enhance strategic resources mainly for the premium tire business with high certainty of return
Enhance shareholder returns by increasing dividends in a stable and continuous mannerFor Enhancing Shareholder Returns

Strategic Shareholdings Policy

Bridgestone’s basic policy is to increase dividends in a stable

Bridgestone defines strategic shareholdings as holdings thatand continuous manner through sustainable enhancement ofcontribute toward increased corporate value of the Company

corporate value, with a target consolidated dividend payout

and are held out of necessity from the Company’s businessratio to be 40%, taking into consideration not only ourstrategy perspective or with the goal of maintaining or

business performance and financial position for the relevant

strengthening relationships with businesses or collaborative

period, but also our mid-term profit forecast, investment

industries. We will not hold strategic shareholdings forplans, and cash flow. Based on this basic policy, the dividend

reasons outside of this definition. We also confirm theforecast for 2024 is an increase of 10 JPY versus 2023 while

appropriateness of our holdings on an annual basis,

the annual dividend is expected to be 210 JPY per share atincluding an assessment of securities for which shares areminimum, increasing to 250 JPY level per share at minimum

held, number of shares held, holding ratios, and otherby 2026. Towards 2030, we aim to gradually raise thefactors. These assessments are then verified by the Board

dividend payout ratio to 50% as a target. Bridgestone willof Directors. Appropriateness of holding is comprehensively

also flexibly consider share buybacks as an option.

determined by operating divisions involved in businessexecution in accordance with the shareholding policy of theMaintaining Financial Soundness

Company, taking into account a quantitative evaluation of
the economic rationale corresponding to the cost of capitalWith an appropriate financial discipline, we are maintaining

and other relevant factors for each individual stock holding.

and ensuring financial soundness, as well as keeping a highShareholdings that are not judged as appropriate based onlevel long-term credit rating.

the results of this verification process are reduced after
establishing a dialogue and gaining the understanding of
the business partner for the holding in question. As of

As of December 31, 2023

the end of 2023, the ratio of shares held by strategicLong-term
RatingRating Agency Name
Moody’s Japan K.K. (Moody’s)

A2Standard & Poor’s (S&P)

A

Rating and Investment Information, Inc. (R&I)

AA+

Japan Credit Rating Agency, Ltd. (JCR)

AA+

shareholdings to net assets (consolidated) was 1.5%,
decreasing year by year.

● Strategic Shareholding Status

政策保有株式の保有状況
150(Number of stocks held)

126
120

120

118

116

110
91

90

80

77

72

69

60

30

0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023（FY）

164,015

87,34370,31489,447

60,11049,896

Total amount recorded on balance sheet* (M JPY)
259,754

270,895

238,370

248,917* Total of listed and unlisted shares

Bridgestone 3.0 Journey 2024 Integrated Report89