Mid Term Business Plan (2021-2023)—21MBP Summary
21MBP (Mid-Term Business Plan) was formulated and announced in February 2021, targeting the period from 2021 to 2023, as
the starting point for the transformation under Bridgestone 3.0. This aims to become a "strong" Bridgestone capable ofadapting to change. In 2023 as its last year, we reviewed our “execution and delivering results” toward the 24MBP focusing
on value creation from 2024.

Positioning of 2023
• Last year of Mid Term Business Plan (2021-2023)—21MBP: Return to a “strong” Bridgestone
capable of adapting to change• Foundation for Mid Term Business Plan (2024-2026)—24MBP: Complete laying the foundation
for premium enhancement and evolution with solutions business• Return to a “strong” Bridgestone capable of adapting to change

Not yet returned• Complete laying the foundation for premium enhancement and linkage with solutions
business
Foundation for premium enhancement

 ompleted: Reinforced structure to “produce
Cand sell” premium tires
Partially achieved

Foundation for linkage with solutions business

21MBP: With setback in solutions for consumer tires, clarified “what to do” and “what not to do”
Decision to promote mainly retail & service as well as commercial BtoB solutions in the 24MBP

Financial Performance from 2015 to 2023
Currency
exchange

USD
EUR

Adj. Operating
Profit121 JPY
134 JPY

109 JPY
122 JPY

107 JPY
122 JPY

13.6%
12.1%

Adj. Operating
Profit Margin

517.2

132 JPY
138 JPY

141 JPY
152 JPY

103 JPY
126 JPY

21MBP[B JPY][%]110 JPY
130 JPY

11.7%

11.1%

13% level

9.8%
7.7%
343.1

482.6
394.3

480.6

B JPY

450.0

B JPY level

207.4

222015

2019

2020

2021

2022

2023

21MBP
(Announced Feb. 2021)
2023 target

Revenue [B JPY]

3,790.3

3,507.2

2,695.2

3,246.1

4,110.1

4,313.8

3,300 level

ROIC

14.7%

7.4%

5.1%

9.0%

9.4%

8.7%

10% level

ROE

13.3%

10.0%

-0.9%

12.9%

10.9%

10.4%

12% level

Profit from continuing
operations [B JPY]

284.3

240.1

-19.8

307.9

305.4

326.9

290 level

Profit margin fromcontinuing operations [%]

7.5%

6.8%

-0.7%

9.5%

7.4%

7.6%

—Dividend per share [JPY]

130

160

110170175

200

Continuous
improvement

Return to a “strong” Bridgestone capable ofadapting to change
Not yet returned
In the 21MBP, Bridgestone aimed to be a “strong” Bridgestone
capable of adapting to change, however in 2023 we wereunable to sufficiently adapt to the change amid significant
demand decline in truck & bus tires for replacement mainly
in North America and Europe. Insufficient accuracy indemand and sales forecasts in North America and Europe,
as well as the weak business and channel foundations in
Europe that were exposed by the challenging businessenvironment remain as issues.
As for revenue, Bridgestone secured an increase
versus prior year by achieving sales mix improvement
through expanded sales of premium PS (passenger car)tires for replacement and sales expansion of ultra-large/
large OR (off-road mining) tires, as well as tailwind fromcurrency exchange.
On the other hand, there was a decrease in adjusted
operating profit versus prior year with a significant impact
from Argentina’s hyperinflationary accounting(approximately 10 billion JPY impact on profit decrease)although cost increases from increase in raw material
prices, energy cost and labor cost, as well as deteriorationin plant capacity utilization reflecting sales decline inNorth America and Europe, were covered by improvementin price and sales mix and thorough expense management(profit increase excluding the impact from Argentina’s
hyperinflationary).
ROIC, the most important management indicator, was8.7%, lower than the 21MBP target of 10%, so there
remained issues in signal monitoring, sensitivity to agilely
adapt to changes, as well as quality and speed of PDCA
(Plan-Do-Check-Act) cycles.

Foundation for premium enhancement
CompletedTo establish the foundation for premium enhancement,
mainly in 2023, we thoroughly selected and executed
investments in reinforcing production to drive premium
enhancement even in the challenging business environment.

Strategic Growth Investment• PS: Invested in replacing manufacturing equipment forhigh rim diameter (HRD) and ENLITEN products (Japan,Europe and Latin America)• OR: Reinforced production to manufacture Dan-Totsu
product “Bridgestone MASTERCORE” (Japan)• T B: Strengthened manufacturing for premium new tires(Thailand and U.S.)(Adjusted investment timing based on demandenvironment)• MC: Reinforced production in premium race and sports
areas (Japan)

Furthermore, in terms of sales as well, Bridgestone hassteadily driven premium enhancement, such as salesexpansion and improvement in sales mix of PS HRD tires
and PS premium tires as well as sales expansion andincrease in market share of OR premium tires.

Foundation for linkage with solutions businessPartially achieved
Bridgestone has laid the foundation for linkage withsolutions business. In addition to strengthening andexpanding PS retail & service, TB retread, and mining
solutions by linking them to the premium tire business, wehave also laid the groundwork for future development in
the mobility tech business in North America.

Strategic Growth Investment• Reinforced PS retail & service solutions network (NorthAmerica and Japan)• TB retread: Reinforced production (North America andJapan)• Enhanced mining solutions network: Acquisition of Otraco
International Pty Ltd, off-the-road tire solutions provider
in Australia, Chile, and South Africa (2021)• Laid foundation for mobility tech business in North
America: Acquisition of digital fleet solutions provider
Azuga (2021)• Responded to new mobility – Establishment of a mobility
ecosystem: Minor investments, venture capital
investments, etc.

Additionally, in June 2023, we clarified “what to do” and“what not to do”.
We determined unprofitable projects from theviewpoints of profitability, growth potential and value
creation one by one and decided to discontinue solutions
for consumer tires (mainly for PS) in North America &Europe which did not work as a business model. Also, wedecided to promote rebuilding of retread in Europe andAsia which have profitability issues in 24MBP.
Meanwhile, “what to do” is solutions to amplify value ofpremium tire. We will focus on retail & services (in NorthAmerica and Japan), TB retread for commercial BtoBsolutions, and mining and aviation solutions. In addition,
for the mobility tech business in North America, which ispositioned as strategic business from the 24MBP, we will
begin initiatives to create new value based on the“Fleetcare” concept which offers premium tires andsolutions as a package service.
Thus, under 21MBP, we could not return to a “strongBridgestone capable of adapting to change”, meanwhile
generally completing to lay foundation for premium
enhancement and linkage with solutions business. In 2024,
the first year of the 24MBP, we will reinforce businessquality as a top priority and have a clear path to tackle andresolve the remaining issues of the 21MBP and the newissues from 2023 in order to return a “strong” Bridgestone
capable of adapting to change.

Bridgestone 3.0 Journey 2024 Integrated Report23