2030 Long Term Strategic Aspiration- Bridgestone 3.0 Journey Roadmap toward becoming a resilient “excellent” Bridgestone

August 31, 2022

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

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Today’s agenda

1.

Bridgestone’s Mission, Vision and Corporate commitment

2. 2030 Long Term Strategic Aspiration - Bridgestone 3.0 Journey Roadmap toward becoming a resilient “excellent” Bridgestone

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Serving Society with Superior Quality

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2050
Bridgestone continues to provide social value and customer value
as a sustainable solutions company.

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2020
Bridgestone 3.0

Announcement of Mid-Long Term Business Strategy“Sustainability at the core of management & business”

Third Foundation

2021

Corporate Transformation (CX):
Mid Term Business Plan (2021-2023): Return to a “strong” Bridgestone
capable of adapting to change“Tackle past negative legacies without delay““Focus on execution & delivering results for immediate issues”“Lay foundations for future growth”

2022

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Rebuilding earning power
Strategic growth investment

Close to becoming a “strong” Bridgestone capable of adapting to changeCorporate commitment

Axis to drive management while earning
the trust of future generations
8 Bridgestone-like vectors for transformation

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2030 Long Term Strategic Aspiration- Bridgestone 3.0 Journey 1st step of “Third foundation” Bridgestone 3.0
toward Bridgestone’s 100th anniversary in 2031
Roadmap toward becoming a resilient “excellent” Bridgestone

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Why is the “2030 Long Term Strategic Aspiration“ required now?

Pandemic

New global order

Climate change

Acceleration of
CASE & MaaS

Turbulent change” in business environment, “Change becomes commonplace”

Restructuring ofmobility industry

Restructuring oftire industry“Transform change to opportunity”

2030 Long Term Strategic Aspiration
Present “Roadmap toward becoming a resilient ‘excellent’ Bridgestone”
Establish management structure & practices in which the global management team ensures“unwavering management” following the roadmap, while also responding to change flexibly & agilelyClarify management strategy, direction of resource allocation and capital allocation toward 2030
Engage new partners and create new value as a resilient “excellent” Bridgestone that is both robust and capable of transforming
change to opportunity amidst change that is becoming more commonplace
Even in turbulent times, the “mobility of people & objects” will not change
Bridgestone will respond to change, and continue “supporting the mobility of people & objects”

Toward 2030, and Bridgestone’s 100th anniversary in 2031, accelerate transformation froma “strong” Bridgestone capable of adapting to change, to a resilient “excellent” Bridgestone
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2030 Long Term Strategic Aspiration: 3 pillars
Enhance corporate value as a resilient “excellent” Bridgestone by creating andbalancing social and customer value, and gaining new competitive advantage• Focus on premium business & solutions business which can create “new premium”• Establish business models with high certainty(accelerate growth of premium tire business and solutions business that leverages premium tire business’s strengths)• Sustainability vs. business growth,customization of tire performance vs. productivity improvement & cost optimization across value chain- Simultaneously create value that can sometimes be contradictory -As a resilient “excellent” Bridgestone, aim for the 100th anniversary and the next stage• Fulfill our responsibility to every stakeholder (nature, society, customer, employee, supplier, investor, local community, etc.)

Survive in a VUCA* world, and stay resilient*Volatility, Uncertainty, Complexity, Ambiguity• Establish management structure, abilities and practices capable of responding to changes in the business environment
with agility

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2030 Long Term Strategic Aspiration: New management structure
2020:
Corporate transformation
Mid Term Business Plan (2021-2023)

Mid Term Business Plan (2024-2026)
Establish new “glocal & portfolio management”‐ Flexible & agile management“Glocal” management

4 business portfolio management• Total optimization globally & across value chain• Deploy local strategies adapted to eachregion/market, based on global strategy• Passenger car tire : Premium tire &solutions business• Truck & bus tire : Premium tire & solutions
business• Specialties tire (OR AC AG MC*) :Premium tire & solutions business• Diversified products & Exploratory
business *OR: Off-the-road tires, AC: Aircraft tires, AG: Agricultural tires,

Mid Term Business Plan (2027-2029)
Further evolve new “glocal &portfolio management”

2030: 1st step of “Third foundation”
Bridgestone 3.0 completed
2031: 100th anniversary of founding

MC: Motorcycle tires

Regional & market characteristics
x 4 business portfolio
Build foundations for a new “glocal & portfolio
management”

Evolve to a “strong” Bridgestone capable ofadapting to change

Establish management structure & practices in which the global management team ensures“unwavering management” following the roadmap, while also responding to change flexibly & agilely“Roadmap toward becoming a resilient ‘excellent’ Bridgestone”
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2030 Long Term Strategic Aspiration: New business portfolio
Passenger car tires (PS): New premium in the EV era – ENLITEN business strategy

Premium tire business + Retail & service solutions business
Truck & bus tires (TB): New premium in the circular business era ENLITEN business strategy

Premium tire business + Tire-centric solutions business +Mobility solutions businessSpecialties tire (OR AC AG MC*): Realize a circular business model– MasterCore business strategy (OR), etc.

Premium tire + Tire-centric solutions business*OR: Off-the-road tires, AC: Aircraft tires, AG: Agricultural tires, MC: Motorcycle tires

Diversified products & Exploratory business: Sharply focus on areas where
Bridgestone’s core competencies can be leveraged
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2030 Long Term Strategic Aspiration
Revenue

2022

2030

4,000 B JPY level

Over 5,000 B JPY level

Expand scale

Growth level equal to moving up approx. 50 positions in Fortune Global 500: 484 th (2021 430th level (2030)

Adj. operating profit

450 B JPY level

Over 800 B JPY level

Adj. operating profit margin

11

over 15

Reinforce quality

ROIC

9

12% level

Reinforce quality

ROE

10

Talent creativity

Trial from 2023

Enhance earning power

Exceed Japanese standards to reach global level(Avg. AOP*1 for all industries: 8.6% (Japanese companies), 14.8% (U.S. companies) for 2021

Exceed Japanese standards to reach global level(Auto parts manufacturing industry*2 (26 companies with revenue above 1,000 B JPY) Avg. ROIC: 9.7% for 2021

13% level

Reinforce quality

Reach top level among Japanese companies, and a global level(ROE*3 for key companies in all industries: 6.3% in Japan, 12.1 % in Europe, 17.9% in U.S., for 2019

Introduce from Mid Term Business Plan (2024-2026)*1 Source: Article in Nikkei (July 27, 2022) *2 Source: SPEEDA Database*3 Source: Ministry of Economy, Trade and Industry’s secretariat material on “Inauguration of a Study Group on Dialogues that Contribute to Long-term Corporate Management and Investment for Creation of Sustainable Corporate Value (the "SX Study Group")” (May 2020)

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2030 Long Term Strategic Aspiration

Mid-term environmental target“Milestone 2020”(established in 2012)
CO2 reduction target (vs. 2005):
Reduce more than the CO2 emitted in manufacturing- Reduce 35% of CO2 emissions in manufacturing
process (per revenue)

Achieved

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Bridgestone 3.0 environmental target
announced June 2020
Reduction of CO2 emissions
Milestone
2030

50%

vs. 2011, Scope 1 & 2

Recycled & renewable material ratio

40%
2050

Carbon neutrality
100% Sustainable material

2030 Long Term Strategic Aspiration
Revenue [B JPY]

Resilient “excellent” Bridgestone

Scale of overPremium tire business

5,000 B JPY

Solutions business* * Includes revenue of retail tire business

60,000

Diversified products & Exploratory business(5,300 B JPY level)

50,000

Solutions business

40,000

Expand scale

2,000 B JPY level30,00020,00010,000014/77

Premium tire business

3,000 B JPY level2030 Long Term Strategic Aspiration
Adj. Operating Profit [B JPY]
Adj. Operating Profit Margin [%]Adj. Operating Profit &Adj. Operating Profit Margin

Resilient “excellent” BridgestoneOver

820 B JPY level
Over 15%level

Adj. Operating
Profit Margin [%]Enhance earning power
Reinforce quality

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Strategy outline: Premium tire business
Mid Term Business Plan (2021-2023)

Mid Term Business Plan (2024-2026)

Return to a “strong” Bridgestone

From volume to value

Mid Term Business Plan (2027-2029)

New “premium tire business portfolio management”

Create “new premium”
Premium business strategy focusedaround high rim diameter tires forpassenger cars, truck & bus / miningtires

New premium” 1st stage

 Close to achieving Mid TermBusiness Plan (2021-2023)

 From volume to value Increase productivity

Toward a “strong” Bridgestone capableof adapting to change Complete laying foundations toenhance premium and evolve withsolutions business- ENLITEN (Tires for passenger cars (PS), light trucks (LT)and truck & bus (TB))- MasterCore (Off the road tires for mining vehicles (OR))•••

Investment to increase production of premium tires:
Maximize leverage of production capacity in existing
plants for premium tires
Shift production from GU zone to premium segment

Upgrade existing plants to Green & Smart factories(Including enhancing existing factories)
Drive Green & Smart operations

 Complete focus on premium tire business• Acquire a new premium brand position- Gain trust and empathy by Bridgestone E8 Commitment
activation- 2024: Re-activate global motorsport activities

New premium” 2nd stage- ENLITEN & MasterCore
Ratio of ENLITEN & Mastercore in 2030: approx.100%(of totals sales volume) Continue reinforcing premium tire segment
Elevate ENLITEN & MasterCore to an even stronger“premium”
Evolve premium tire business by leveraging solutions
business and service solution network
Build a circular business model coordinating with thesolutions business Reinforce new“premium tire business portfolio management

Full-scale introduction of BCMA (commonality & modularity) :Improve productivity, optimize cost and reduce break-event point, ultimate customization

Drive shift to Green & Smart factories

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Original
equipment*HRD: High rim diameter

Replacement

HRD* original fitment

1st

Premium

Premium

2nd

Why is the creation of a “new premium” needed?
3rd

Commoditization“Growth rate” and “ratio among total demand”

of passenger car high rim diameter tire (18inch and above) demandfor 1st time replacement (Bridgestone estimate)

Overall demand for passenger car high rim diameter
tires will grow, but demand growth for 1st time
replacement (premium) will slowdown
A “new premium” is required to be resilient

Growth rate
Ratio among
total demand of
18 inch tires

Growth rate
vs. previous year
110% level

50% level
Decline in growth rate

Slowdown in expanding premium tire sales

Decline in ratio among total demand

Premium level (unit price positioning level) decline

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Growth rate
Growth rate

Original
equipment*HRD: High rim diameter

Replacement

HRD* original fitment

1st

Premium

Premium

2ndCreation of “new premium”
3rd




Commoditization“Growth rate” and “ratio among total demand”

of passenger car high rim diameter tire (18inch and above) demandfor 1st time replacement (Bridgestone estimate)

Growth rate
Ratio among
total demand of
18 inch tires

Growth rate
vs. previous year
110% level

50% level
Decline in growth rate

Slowdown in expanding premium tire sales

Growth rate
Growth rate

⇒ Share up in premium category

Decline in ratio among total demand

Premium level (unit price positioning level) decline⇒ Create “new premium” value

Mid Term Business Plan (2021-2023)

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Mid Term Business Plan (2024-2026)

Mid Term Business Plan (2027-2029)

Create “new premium”:
ENLITEN (PS / LT / TB)
MasterCore (OR)Mid Term Business Plan (2021-2023)

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Premiumcommercial tires linked withsolutions business
MasterCore (OR)ENLITEN(TB)

Mid Term Business Plan (2024-2026)

Premium
passenger car tires
ENLITEN (PS)Mid Term Business Plan (2027-2029)

Create “new premium”:
ENLITEN (PS / LT / TB)
MasterCore (OR)Mid Term Business Plan (2021-2023)

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Premiumcommercial products linked
with solutions business
MasterCore (OR)ENLITEN(TB)

Mid Term Business Plan (2024-2026)

Premium
consumer product
ENLITEN (PS)Mid Term Business Plan (2027-2029)

Simplification & differentiation
Module 1
Carcass (tire skeleton

Module 2
Belt (reinforces tire

Share between products, simplify

ModuleTread (tire surface)

Customize performance, differentiate

Modules 1 & 2: Improve efficiency of development process & supply chain,realize productivity improvement & cost optimization
Module 3: Customize performance flexibly & agilely per market/customer, and differentiate

BCMA adoption rate in 2030 (for passenger car and truck & bus tires)
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Approx. 100

Simplification & differentiation‐ Create value across entire value chain Productstrategy

R&D

Procurement

Production
Plan

Manufacturing

Logistics

Sales

Use

3R

Cost optimization & lower environmental impact
by improving efficiency of development process

Contribution to both sales & cost through flexible
production allocation (realize global optimization)

Increase customer satisfaction through“ultimate customization”

Agile new product development & sales
through shortened development process

Productivity & quality improvement,
cost optimization and lower environmental
impact by improving efficiency of production
process

Optimize inventory through improved flexibility
in production– Optimize cost of logistics & inventory, lower
environmental impact
Reduce back orders (shortages)‐ Avoid missing out on sales opportunities(reduced lead time from planning to sales)

Procurement cost optimization throughstandardization of raw material

Speed up response to changes in sales plans
through shared components & modules
between products

Improve productivity, optimize cost ⇒ reduce break-even point” vs. ”ultimate customization for each customer/market
Contribute also to sustainability through resource-saving, improving resource productivity, reducing CO2 emissions, etc. across the value chain

Aim for simultaneously creating value that can be contradictory
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Global Tire Footprint (Manufacturing)
While keeping “local production for local
sales” as a basic concept, aim for global
optimization by ensuring flexibility
Leverage Japanese and Asian plants as global
premium tire supply sites

Tire plants for new products

Approx.

(Global total)

50

sites

As of end of July 2022

“Local production for local sales” ratio (aspiration) - Global Passenger car
tires

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Truck & bus
tires

Reinforce structure to produce premium
products

Replace equipment to produce high rim diameter tires
for passenger cars /Establish manufacturing structure to adapt to ENLITEN
technology, reinforce MasterCore, and other premium
products for truck & bus tires, and motorcycle tires

Make investment for Green & Smart factories
and operations

Balance CO2 emission reduction, improvement inresource productivity & labor productivity by suru-raku
at manufacturing (less burden in manufacturing) withbusiness growthFrom volume to value: Premium tire sales expansion in replacement

Height of bar graph: Volume

High rim diameter tires for passenger cars:
Accelerate shift to premium

Low rim diameter tires (17 inch and below)

ENLITEN
equipment

New tires

High rim diameter tires (18 inch and above)

ENLITEN
equipment

Ultra-large & large tires
for mining vehicles:
All premium,reinforce increase in volume & share

Truck & bus tires:
Increase sales & sharefor new tire + retread

Retread tires

ENLITEN
equipment

Large tires
Ultra-large tires

ENLITEN
equipment

Approx.

100%

Approx.

90%

Retread ratio
Approx.

50 %Approx.

40%

Ultra-large 63 inch
MasterCore ratio

High rim
diameter ratio
Approx.

60%

Approx.

20%

2021

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2022

2026

2030

2021

2022

2026

2030

2021

2022

2026

2030

Evolve the value from “ENLITEN” technology, achieving
both environmental and driving performances andcontributing to expanding the driving distance of EVs,
to products and business model

Passenger car tire

New premium in EV era

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2030

90 products
ENLITEN equipment % approx.100%
ENLITEN productapprox.

Technology
product Provide product customized to each market andcustomer usage conditions“Ultimate customization” optimized to fit EVs

Low rolling
resistance
Customer A

Customer B

Customer C
RRC

HandlingLightweight

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Wear

Handling

Noise

WeightRRC

Wear

Handling

WeightWet

Wet

Light weight/
Rolling resistance improvement

Noise improvement

Wear
resistance

Less
noise

Noise

Wet

Wear performance
improvement

Change ofsocial environment

Change ofvehicle powertrain

Change ofvehicle value

Change ofvehicle architecture

Increase of SDGs request
Striker environment regulation

Affinity with connectedautonomous driving
Simplification ofvehicle structure # of parts

Creation of business utilization
opportunity of vehicle data
Enhancement of value

From distributed architecture tointegrated architecture
Separated development of hard and soft

Improvement of energy efficiency byelectrification

Competition of battery performance

Drive electrification & software first development
The value required for tires has changed : Customize to the performance optimized to fit EVs
Significant improvement of driving range and electricity consumption
by improving tire rolling resistance

Improving development efficiency andflexibility to respond to soft development

Ensuring space for battery in vehicles Lighter vehicle weight
Cost optimization Improvement of space utility

Shift from tailor-made tire development according to the hardware, to tiredevelopment that realize both efficiency and ultimate customization

Bring out the maximum driving experience of the vehicle
Support to create vehicle by our across value chain
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Global innovation hub to create new value
Start from interaction with empathy, to co-ideation, co-R&D and co-creation
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Technology

innovation
Mid Term Business Plan 2024-2026

Masteringrubber

Double network rubber
Precise polymer
Composite design

Conventionalrubber

2.5

Realizing both fuel efficiency anddurability

Mid Term Business Plan

2027-2029

 Drive to develop sustainable materials
Cure less / Sulfur free Rubber which easily recycle
Design sustainable multi-scale polymer composite
by managing, creating and returning chemical boning

times more
durablevs. conventional ECOPIA material

2030
Multi-scale composite design(from atoms to a tire for sustainability)

Networkcomponent

Masteringroad contact

Tire advanced simulation based on contact mechanisms

Structural CAE

Strong “real”

based on market/tire data

Combined simulation oftires & vehicles, etc.

DigitalContact simulation onvarious road surfaces

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Realize digital twin which canreproduce tire conditions in market byincorporating complex real roadcontact mechanisms and tire/vehicletransient characteristics*

2030
Digital twin through mastering road contact
to monitor tire in market on a real time basis

Technology

innovation Mastering manufacturing : Green & Smart factory

Green factory
Mid Term Business Plan
2021-2023

Mid Term Business Plan
2024-2026

Mid Term Business Plan
2027-2029

Electrification of the
manufacturing equipment
energy source(mainly curing process)

Manufacturing converting CO2 emitted
in factory to energy

Replace thermal energy to electric energy
Combine with renewable energy andreduce CO2 emission

Drive manufacturing leveraging methanation throughco-creation
Retrieve CO2 emitted from manufacturing process

Maximize value withminimum sustainable resources
2030

CO2 emission

50% reduction(vs 2011)

Scope 1 & 2

Drive to introduce renewable energy (electricity)
Renewable energy ratio plan

Renewable energy
electricity

Aim for 100

2022 24%, 2023 over50%
Convert generated methane gas to the source of energy

Proof-of-Concept experiments
in Japanese model plant(Kitakyushu plant)

Implementation of Green factory model plant
Global model 4 plants: Americas Europe Asia Japan

Manufacturing keeping on renewing tires to raw material and circulating resource
Utilization of sustainable raw material) Develop material which can increase recycled & renewable material ratio : Align with ENLITEN business strategy, product strategy (incl. retread) Drive recycle business, reinforce to utilize renewable material : Natural rubber business, guayule business

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2050
Carbon neutrality
2030
Recycled & renewablematerial ratio 40
2050
100% Sustainable material

Technology

innovation Mastering manufacturing : Green & Smart factory

Smart factory
Mid Term Business Plan
2021-23

Mid Term Business Plan
2024-26

Mid Term Business Plan
2027-29

Automate control of manufacturing process which is
Bridgestone’s strong “real”, fostered through producing Dan-Totsu
products (MasterCore, REGNO, POTENZA)
Drive automation of each process

Drive to introduce digital / sensing
technology and AI control

Evolution and expansion of sensing technology cultivated by
Bridgestone unique state-of-the-art tire building system“EXAMATION”
Convert tacit knowledge to explicit
knowledge (expand to other process)Aspiration in 2030

Creation of new value
such as enhancing
quality and productivity
Implementation of
Smart factory model plant“Strong” real(“Takumi”- artisanal skills)
digitalMastering manufacturing
2030
Challenge toward
global superior /uniform quality & ultimate “circle”

Global model 8 plants

Americas / Europe / Asia / Japan

Connect by digital and build
manufacturing digital platform

Passenger car / Truck & bus tire factory

Product accuracy (circularity)
30% upLess skills/High efficiency
Labor productivity

130%

Connect across value chain and create new value (next generation’s manufacturing platform)
Kneading with rubber

Mixing process

Extruding/Cutting process

Automation technology+
Digital / sensing
technology and AI control

Automation technology+
Digital / sensing
technology and AI control

Building process

Curing process

Inspection process

Automation technology+
Digital / sensing
technology and AI control

Automation technology+
Digital / sensing
technology and AI control

Automation technology+
Digital / sensing
technology and AI control

Connect across factory process

Manufacturing digital platform – MES*
*Manufacturing Execution System

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Growth enabler of premium tire business and solutions business

Retail & service solutions network
Passenger car

Retail & service solutions business

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Retail & service solutions network/ Cloud platform
Start collaboration globally from 2022

As of the end of 2022 June

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New premium in circular business era
linked with premium tire business

Tire-centric solutions business• ENLITEN business strategy (TB)
• Mining solutions with MasterCore at the core
• Aviation solutions

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Maximize each tire value
through the one integrated approach with retread
by using up each tire asset till the end of life

Through close alignment with mobility solutions and recycle,
Create a society where tire value “circulates”

Realize circular economy

Truck & bus tires

New premiumin circular business era

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90 products
ENLITEN equipment % approx.70%
ENLITEN product #2030

approx.

Establish the circular business model

Maximize tire value by using up each tire asset till the end of life
through the one integrated approach with Dan-Totsu product and retread
Aspiration
In 2030Premium tire
Competitive new tires
High durability,
Wear performance,
Low rolling resistance

Logistics

Use /Maintenanceservice

Manufacturing

Case for retreads

R&D

High durability cases which
maximize # of retread

Provide solutions leveraging tire data

Sales

Unique Real

Tire monitoring system air pressure & temperature
Understand customer’s tire conditions deeply

Reuse

Digital platform

Database of customers and tire information
Analyze customer’s usage conditions deeply

Contribute to reduce environmental burden
new tire3 vs Fuel efficient new tire

Retread tire2

Resource productivity

50% reduction*

Greenhouse gas emissions

48% reduction*

Efficient use of resource(calculated based on CO2 emissions)＊Calculated based on Tire LCCO2 Calculation Guideline Ver 2.0(The Japan Automobile Tyre Manufacturers Association, Inc.), example - Truck & Bus tire (275/80R22.5)

Product
strategy

Reuse

Procurement

Subscription
for truck & bus approx.

Recycle(2022 plan)

500,000 contracts

Retread tire process management system
Productive retread tire manufacturing

Provide the subscription package including
maintenance services that customer can use tiresafer, longer, more proper and efficient according toeach customer’s situation of use

Expand to ENLITEN - light truck tires, passenger car tires (commercial use) as the circular business model
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New premium Dan-Totsu productBridgestone MasterCore
Improve customized performances
without sacrificing others

Able to customize the same tire to each customers’ operation
conditions/plans and mine layout

More payload

Durability /Longer tire life

Tire payload)

Load pressure resistanceLong-lasting

Faster(Vehicle speed)
Heat resistance

Active inPayloadWear resistance

Result of testing in an iron ore mine (Australia)

Bridgestone
conventional
product

Less repair

Vehicle speed*Internal
manufacturing(Durability)
Cut resistanceLess breakdown
Durability)

PayloadResult of testing in a gold mine (Mexico)

Separation resistance77 mines (As of July 2022)

2030 MasterCore ratio

Longer tire life

Durability / Longer tire life

METAL SURFACE COATINGTECHNOLOGY
Industry-first
Bridgestone’s unique new steel cord
and rubber adhesion technology

Vehicle speed

63 inch Close to 100

PayloadDurability / Longer tire life
Vehicle speed
Result of testing in a copper mine (U.S.)*Performance index with Bridgestone conventional tire as 100 (Bridgestone analysis)

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New premium

Propose solutions optimal for each customer with MasterCore
at the core. Contribute to maximizing efficiency and economic
value in mining operations.

Mining solutions withMasterCore at the core
Aspiration in 2030
Logistics

Sales

Mining vehicle & tire monitoring
Obtain & analyze operation data in real timeUse /Maintenanceservice

Manufacturing

R&D“Digital”“Real”
MasterCore
active in

Mines

Network

Sites

Reuse
Unique “real” x “digital” platform

Reinforce coordination withon-site service by Otraco
Product
strategy

Reuse

Procurement

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RecyclePromote & expand
long term contracts
which include solutions

 Leveraging digital tools, understand tire usage & vehicle
operating conditions⇒ Propose a better way to use tires (load, speed,etc.) adapted to each mining vehicles’ operations
 Predict tire demand according to customers’ operationplans⇒ Propose efficient tire inventory plans & operations.
Contribute to the optimization of mining operations.
 Work on realizing repair, retread and recycle,
and take on the challenge of establishing a circularbusiness model

Mines

Solution contract
As of July 2022)

Pioneering circular business model, a strategic starting point

Aviation solutions
Business model that amplifies value by
leveraging tire data to improve resource efficiency

New tire + multiple retread
Establish a circular business model

Aspiration in 2030
Logistics

Sales

Use /
Maintenanceservice

Manufacturing

Airlines

Tire data analysis & wear
prediction

Share data

Flight data
Planned tire replacement

Also collaborating
with
Efficiently maintain optimal inventory
system vendorslevels together with customers

Efficient tire inventory plan
& reduction of maintenancemanpowerManagement of each tire

Share tire inventory information with airlines)

R&D

Reuse

Efficient carrier maintenance plan &tire replacement

Unique “real” x “digital” platform

By amplifying data value,
maximize tire asset value

Coordination with airlines’ system
Application fortire management

Product
strategy

Reuse

Contribute to maximizing efficiency & economic value of airlines’ operations.
Also contribute to sustainability.
Procurement

RecycleSupport vehicle operation systems
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Truck and bus

Mobility solutions business

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Mobility solutions businessContribute to the growth of truck and bus premium tires business and the establishment of circular business model
Expand customer base and enhance fleet solutions which amplifies the value of tire data and mobility data

800,000
vehiclesNo.1 Position in Europe

Increase synergy withpremium tire and tire-centric solutions

Evolve into a service & solutions thatcombines premium tire, tire data andvehicle data

Premium tire

Tire related
service solutions

Vehicle(fleet)management

Bridgestone offers the service with”One contract & One invoice” as “One team

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200,000
vehiclesCreate synergy
 Product/Service Joint utilization of line-up Operation Joint procurement, best practice sharing Technology Resource efficiency
through joint development, etc.

Scale up in North America, the largest
market for mobility solutions, leveraging thesynergy with Webfleet solutions

Promote enhancementin Europe, Americas, and Australia
Agreed on acquisition by BRISA, Bridgestone’s
affiliated company (Turkey)
Connected vehicles at the end of 2021
: Approx. 650,000 vehicles

Global expansion of Webfleet Solutions
Aiming for the leading position in each region

Strategy outline: Solutions business
Mid Term Business Plan (2021-2023)
Return to a “strong” Bridgestone Determine synergies with premium
tires biz, profitability and growthpotential by each business Close to achieving 21MBP
Toward “strong” Bridgestone
capable of adapting to change Complete laying foundations toenhance premium and evolve withsolutions business

Mid Term Business Plan (2024-2026)
Build the foundation to accelerate the solutions business
Execute strategically with the determined business
Build a foundation for the rapid expansion of solutions
business for 2027 and onwards

Mid Term Business Plan (2027-2029)
Expand & grow solutions business rapidly Expand solutions business rapidly
leveraging strength of premium tirebusiness

Retail & service solutions network•

Strengthen expansion of the network as our growth enabler

Retail & service solutions business
Passenger car• UX‐Amplify customer experience value• Enhance mobile van service and EV charging stations• Enhance subscription model

Tire centric solutions business
Truck & bus : ENLITEN business strategy (TB)
- Retread: ”as a Bridgestone’s core”• Invest in reinforcement of retread• Strengthen synergy with the premium tire business and mobility solutions business
Mining: Solutions with MasterCore at the core
Aviation: solutions: Pioneering circular business model, starting point of solutions strategy

Mobility solutions business
Truck & bus : Contribute to premium tire biz growth and establishment of circular business model• Expand premium tire’s customer base with Webfleet & Azuga• Extend the “Fleetcare” concept globally

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Revenue by each solutions business

Retail & service solutions business** Including retail tire business

25%

20,000Tire centric solutions business(retread, tire data service business etc).

20%

Tire 15%
centric
solutions business

Others
15,00010%650 B JPY level5%

10,0000%Over 200 B JPY-5%Retail & service-10%
solutionsbusiness

5,000-15% B JPY level
1,200

approx. 900 B JPY

-20%
0

-25%

2021

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2022

2030

Respond to new mobility - Build mobility ecosystem
Build a extensive ecosystem from the premium tire business to the solutions business and sustainability

May mobility

U.S.

Iris Capital
EuropeThe Westly GroupU.S.

Kodiak Robotics

Autonomous driving
technology development, U.S

Autonomous long-haul trucking
technology development, U.S.

TyrataTIER Ⅳ

Autonomous driving
technology development, Japan

Tire sensor/data management
service provider, U.S.

REACH

Car IQ

service provider for fleets(Notice dealer when vehicle breaks down), U.S.

WrenchYoshi

Mobile vehicle maintenanceservice provider, U.S.

TireHub

Automobile related
payment platform provider, U.S.

EVBox

Mobile vehicle maintenanceservice provider, U.S.

EV charging
network solutions, EU※ Joint company with Goodyear

Retail provider ofPassenger car and light truck tires, U.S.

KKR
U.S.

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LanzaTech

Development of technology for recycling
used tire to synthetic rubber, U.S.

Delta Energy

Development of technology for recycling
used tire to carbon black, U.S.

Diversified products business

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Diversified products business
Sharply focus on areas where Bridgestone’s core competencies can be leveraged
and promote premium and solutions

BusinessCore competence

Support operations in various industries

Technology coremastering forming
hybrid polymer

Hydraulic/highperformance hose
Rubber track

Extension

support lifestyles that prioritize
safety and peace of mind

Ease

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

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

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SportsGolf ball
Golf club

Cycle

Power assisted bicycle
bicycleEmotion

Strong brand power
fostered by long history
and track record

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

Hydraulic hose

Rubber track

Air spring

Plastic piping

Sustainability business model
Produce and sell
Use
Renew
Build a circular business model from raw material
Carbon neutrality
Circular economy

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Sustainability business model
Realize carbon neutrality and circular economy
Produce and sell

Premium tire business

Renew

Use

Recycle business

Scope1&2*vs 2011

CO2 emission reduction*

Carbonneutrality

Solutions business

2021 25%,2023 over 30%*Science based target

2022 SBT* Application/ under review for certification(including Scope 1-2 targets)
Reinforce suppliers’ engagement

Recycled & renewable material ratio

2021 37% 2022
2023 over 37%

37%

Mid Term Business Plan
2021-2023

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50%

Expand renewable energy (electricity) : 2023 -over 50%, 2030 : challenge to achieve approx. 100%Strengthen internal utilization of carbon pricing : $100 t/CO2
Green & Smart factory (Existing plants including capacity expansion): Start in 2024-2026, accelerate in 2027-2029
Scope3Circulareconomy2030

2026 over 40%

Contribute to reducing
more than 5x
our emissions

Set quantitative emissions
reduction target
for SBT update in 2026

Develop material to improve Recycled & renewable material ratio:
Alignment with ENLITEN business strategy and product strategy (including retread)

Promote recycle business, strengthen renewable material:
Natural rubber business, Guayule business

Mid Term Business Plan
2024-2026

Carbonneutrality

Recycled & renewablematerial ratio
40%

Mid Term Business Plan
2027-2029

2030

100%
Sustainable
material
2050

Build Sustainability business model
Circulate from raw material:
Leverage biotechnology and forming hybrid polymer technology

Natural rubber business

Guayule business3 natural rubber plantations

Invest mainly in the U.S.
Diversify natural rubber sources(Liberia and Indonesia)

Investment in planting(2 natural rubber plantations in Indonesia)

Aim for commercialization in 2026
through co-creation with partners

Recycle businessTechnology and businessmodel that “Renew” tires to
raw material
Promote mainly in Japan andthe U.S. based on co-creation
Synthetic rubber
Carbon black, Steel etc

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Natural rubber business
Carbon neutrality

Bridgestone group’s natural rubber plantation (3 sites)••
Operate the natural rubber plantation business over 90 years (1926~)
Yield increase with the consistent planting of rubber trees
Achieved a profitable adjusted OP in 2021•

Dimension: Approx. 480 square kilometers

Maintain approx. 5.9M tons of CO2 fixation
Introduce fast-growing elite trees(Improve productivity and increase yield efficiency)
Increase in CO2 absorption and fixation through new planting
on a devastated land

Circular economy

Investment in planting of rubber trees including
elite trees which grow fast (2022~)

Dimension: Sumatra - Approx. 170 square kilometers
Kalimantan – Approx. 40 square kilometers•

Strengthen the supply of sustainable renewable material
supporting premium tire business and Dan-Totsu products

Promote reinforcement of Bridgestone natural rubber plantationand establishment of sustainable natural rubber business acrossthe entire industry
Contribute to the realization of the sustainability business modelContinue social contribution activities staying close to
local community• Impart technology of productivity improvement developed

for our own plantation• Open its health care facility to local community• Provide land for school facility, etc.

Natural rubber plantation

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Contribute to a society that ensures
accessibility and dignity for allPromote guayule businessCo-create with partners and build an ecosystem
Inject resources globally anddrive the business centering on the U.S.

2012~2022
Total investment
amount2022 -2025
Total investment
amountApprox.

13 B JPY
Approx.

5 B JPY

1940’s: Development activity of tires derived from Guayule by Firestone
2012 Official re-launch of R&D activities
2013 Establishment of guayule R&D farm in Arizona (U.S.)
2014 Establishment of the Biorubber Process Research Center in Arizona (U.S.)
2015 Completion of first tires made from guayule-derived natural rubber
2018 Selected as recipient of research grant from USDA *1 National Institute for Food and Agriculture2022 Awarded department of energy grant to advance guayule natural rubber research
Opening of the Advanced Tire Production Center in Akron, U.S.,
production facility of sustainable race tires for the INDYCAR® SERIESIntroduction of race tire derived from guayule, debut as thealternate race tire at the Big Machine Music City Grand Prix in Nashville, U.S.
Investment to establish commercial operations for planting and harvesting guayule at scale
Collaboration and partnering with local U.S. farmers and Native American tribes toincrease capacity of up to 25,000 additional acres of farmland for planting and harvesting activities.

Co-create to date:• with Local NGO - Environmental Defense Fund Promote initiatives to convert toharvest guayule, which requires less water, in order to deal with water shortage (U.S.)• with Versalis: Cooperation toward commercialization (U.S.)• with NRGene: Advanced guayule research (U.S. & Japan)• with Kirin Holdings: Development of new technology for improving guayule-derived
natural rubber productivity (Japan)

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Enhance sustainable raw material procurement
and expand new green land

Accelerate open innovation and co-creation,
aiming for commercialization in 2026
Scale up for production and business toward 2030

Diversification of natural rubber sources
Enhancement & diversification of renewablematerials
Reduce risk of natural rubber supply & price soaring

Growable in arid zones with little water
Expand new green land and contribute toincreased CO2 absorption“Conserve Water Resources”

Contribute to sustainable production ofnatural rubber with co-creation partners
and local community

Bridgestone’s Recycle business
Used tire = “resource”“Renew” tires to raw material
Create a society where tire value “circulates”
Preserving the environment for future
generations through the recycling of tires

Together with you

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Acquire a new position as premium brandStrengthen global motorsports activity

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Enhance talent creativity – talent strategy aligned with business strategy
Mid Term Business Plan (2024-2026)
New premium 1st stage

Mid Term Business Plan (2021-2023)
Return to a “strong” Bridgestone

Have driven initiatives on HRX
as critical management issue since 2020
in gradual execution applying PDCA cycle,
still need to be improved
•
•

•
•

Expand top managements town hallmeetings
Develop talents having potential to be
top management in next generation(Bridgestone Next100)
Promotion female managers (withmentor system by executives)
Promote new workstyles (Remote, freeComplete building the foundation of premium biz
Build the foundation to accelerate determined solutions biz

 Talent creativity - New Global management KPI Introduce in addition to Revenue, Adjusted OP ratio, ROIC, ROE••

Consistently aim to increase business productivity and create added value
Execute initiatives globally to realize both growth of Bridgestone andindividuals working at Bridgestone and create added value

Mid Term Business Plan (2027-2029)
New premium 2nd stage

Enhance new premium biz portfolio management
Expand & grow solutions business rapidly

 Toward a talent group which cancreate new business value andsupport business portfolio

Reinforce talent investment and increase added value⇒ Create a virtuous cycle of value creation

address, Promotion of ABW)•

Simple and lean organization

Further strengthen management structure byappointing a Vice President and Senior Officer for
talent creativity enhancement as of 1st Jan, 2023

Provide opportunity and program to create added value aligned with businessstrategy, and for individual talent growth.
Continue to increase added value aligned with business strategy to increase corporate
value and develop various opportunities for diverse talents to “shine” throughspreading experience and gaining confidence of individuals.

 Global culture change in line with Bridgestone E8 Commitment

 Build new corporate culture and DNA• Drive E8 commitment activation globally• Promote initiatives to deal with the problems specific to Bridgestone, to the region and also global common improvement items

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Enhance Talent creativity
Various opportunities for diverse talents to “shine”
in Bridgestone’s broad business portfolio

1
Mastering rubber/material development

Various supply chain

Natural rubber plantation

On-site of various solutions

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Manufacturing/Logistic

DE&I promotion activities

DigitalAI

Sustainable motorsports

On-site of sales and service staying closely customers

Over 150 countries and regions

Diversified products

Soft-robotics business
Plan to be in-house company from 2024

Strategic resource(Strategic investment

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strategic expenses)

2022-2030

2,800B JPY level(Strategic investment & expenses)
Mid Term Business Plan

2022-2023 plan
Approx.

490 B JPY level

Approx.

Lay foundations to enhance premium
and evolve with solutions businessapprox.

2027-2029

1,100B JPY

Shift to mainly Green & Smart factory andsustainability related investment

Continue building premium tire biz foundation

Continue to invest determined solutions business

Mid Term Business Plan (2027-2029)
Approx.

800 B JPY level

40%

Enhancement ofpremium tire production

Premium tire businessApprox.

1,200 B JPY level

60%

Solutions businessApprox.

1,100 B JPY level

Expansion and reinforcement of retail & service solutions
network / business and tire centric solutions businessApprox.

& 2030Focus on injecting resource for expansion ofdetermined solutions biz

620 B JPY level

IT foundation
Diversified products
Exploratory business

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1,200 B JPY level

Mid Term Business Plan

Start enhancing green & smart factories

Mid Term Business Plan (2021-23)
Approx.

2024-2026

500 B JPY level

Green & Smart factory
Sustainability related

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Direction of capital allocation
With 2030 Long Term Strategic Aspiration as a roadmap,- Secure necessary internal reserves to make strategic resource investment to create and balance new social & customer value and gain the competitive advantage- Also, aim for “maintaining an appropriate financial position” and “conducting shareholder returns”

2022 2030
Cumulative CF

Strategic resource
capital allocation





※1

Cumulative CF fromoperating activities

40%
level

repayment of debt, etc.
Shareholder returns

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approx. 2,800 B JPY

Premium tire business approx. 1,200 B JPY
Solutions businessapprox. 1,100 B JPY
IT / foundation / diversified products &exploratory businessapprox. 500 B JPY

While securing financial health level, balancing out capital efficiency and maintaining financial
position to realize 2030 Long Term Strategic Aspiration

2,800

Ordinary CAPEX, etc.

2030

“Maintaining an appropriate financial position”

B JPY※1 Adjusted such as excluding
strategic OPEX expenditures

Strategic resource

2022

Capital efficiency Capital cost

Securing stability

Net D/E Ratio 2022 0.05 level (plan)
2030 Less than 0.3 levelROE

2022 10% (plan)
2030 13% level

400(less than)

Consolidated
equity ratio

ROIC

2022 9% (plan)
2030 12% level

1,900(less than)approx.

Maintaining and enhancement of rating by credit rating agencies

1,900

approx.
10%2022 Less than 60 level (plan)
2030 Target 60% level in mid-long term

2022

Moody’s: A2, S&P: A, R&I:AA+30%

approx.

(less than)

30%“Enhancement of shareholder returns” “Agile capital management”
Dividend policy : Increase dividend amounts stably and continuously
Dividend payout ratio : 2022 40% ⇒ 2030 50% level
Consider acquisition of treasury stock agilely by reviewing comprehensively from the internal
reserves for strategic resource and financial health level75/77

Strategy outline: Summary
2015-2019
Decline in profit and profit share within the industry ⇒ We will not survive unless we stay responsive and strong”
2020 the Third foundation
Bridgestone 3.0 Journey
Mid Term Business Plan
(2021-2023)

Mid Term Business Plan
(2024-2026)

Return to a “strong” Bridgestone
capable of adapting to change• “Tackle past negative legacies
without delay“• “Focus on execution & deliveringresults for immediate issues”• “Lay foundations for future growth”

Mid Term Business Plan
(2027-2029)

Focus on premium business and solutions business which
create new premium”
Premium tire biz - From volume to value
Solutions biz - Build the foundation toaccelerate the determined solutions business

Enhance new premium tire businessportfolio management
Expand and grow rapidly solutions
business leveraging strength of thepremium tire business

Diversified products and exploratory biz-Sharply focus on areas where Bridgestone’s core competencies can be leveraged

2030 Become a resilient “excellent” Bridgestone
Amplify trust and value through coordination of premium tire, solutions and diversified products and exploratory business
Talent group which can create new business value and support business portfolio / Build new corporate culture and DNA
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Pursue both social and customer value creation,and enhance corporate value.
Pursue both sustainability and corporate growth.
Confronting & overcoming
various challenges and obstacles,
Bridgestone will continue advancing.

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Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs and other statements that are not historical facts areforward-looking statements about the future performance of Bridgestone. Forward-looking statements include, but are not limited to, those statements using words such as"believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words of similar meaning in connection with a
discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in othermaterials released to the public. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Bridgestone
cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, andtherefore you should not place undue reliance on them. You also should not rely on any obligation of Bridgestone to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Bridgestone disclaims any such obligation.

Copyright © Bridgestone Corporation

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