Consolidated Financial Statements for the Fiscal Year Ended December 31, 2017
February 16, 2018
These financial statements, prepared in accordance with accounting principles generally accepted in Japan, havebeen translated for reference only from the original Japanese-language document "KESSAN TANSHIN". The entire
format is pursuant to the requirements or guidance of Tokyo Stock Exchange. As for the contents, if there are any
differences or discrepancies between the original Japanese-language and the English translation, the original
Japanese-language supersedes this English translation.
Bridgestone Corporation
Code number:
5108
Representative: Masaaki Tsuya,

Stock exchange listings: Tokyo, Nagoya, Fukuoka
URL:http://www.bridgestone.com/

Member of the Board
CEO and Representative Executive Officer
Concurrently Chairman of the Board
Contact:
Satoshi Nakamura, General Manager, Investor Relations
Telephone:+81-3-6836-3100
Scheduled date of annual shareholders’ meeting:March 23, 2018
Scheduled date of securities report submission:
March 23, 2018
Scheduled date of dividend payment commencement:
March 26, 2018
Supplementary information for the financial statements to be prepared:
Yes
Meeting to explain the financial statements to be held:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for Fiscal 2017 (January 1, 2017 - December 31, 2017)(1) Consolidated Operating Results(Percentage figures represent changes from the same period of previous year)
Profit attributable toOperating income
Ordinary income
owners of parent

Net sales
Yen in millions%

Yen in millions%

Yen in millions

Fiscal 2017
3,643,427
9.2
419,047(6.8)
Fiscal 2016
3,337,017 (12.0)
449,548 (13.1)(Reference) Comprehensive Income: Fiscal 2017 ¥325,654 million [70.4%]
Net income
per share

Diluted net income
per share
Yen

Yen

%

Ordinary income/ Total assets

%

12.5
11.8
Fiscal 2016 ¥231 million(2) Consolidated Financial Position

Ratio of total equity tototal assets

Net assets

Yen in millions

%

8.6
(6.6)

Net return on Total
equityFiscal 2017375.67375.01
Fiscal 2016
339.04338.52(Reference) Equity in earnings of affiliates: Fiscal 2017 ¥51 million
Total assets

Yen in millions

400,564(7.4)
288,275
432,534 (14.7)
265,550
Fiscal 2016 ¥191,112 million [(23.8%)]

Yen in millions

Fiscal 2017
3,959,038
Fiscal 2016
3,716,030(Reference) Total equity: Fiscal 2017 ¥2,342,147 million

2,402,738
2,345,899
Fiscal 2016 ¥2,283,860 million(3) Consolidated Cash FlowsNet cash provided
by operating activities

%

%

10.4
11.5

11.5
13.5

Total equity per share

%

Yen

59.2
61.5

3,115.69
2,915.85

Net cash provided by(used in) financing
activities

Net cash used ininvesting activities

Operating income
marginCash and cash
equivalents at end ofyear

Yen in millions

Yen in millions

Yen in millions

Yen in millions

418,109444,535(200,777)(178,276)(190,069)(216,404)

501,797471,741

Fiscal 2017
Fiscal 2016

2. Dividends
1stquarterend

Dividend per share
2nd
3rd
Year quarter
quarter
end
end
end

Yen

Fiscal 2016
Fiscal 2017
Fiscal 2018
(Projection)

Yen

Yen

Total

Total
dividends

Dividends
Pay-out
ratio(Consolidated)

Ratio ofdividends
to total equity(Consolidated)

Yen

Yen

Yen in millions

%

%

－
－

70.00
70.00

－
－

70.00
80.00

140.00150.00109,655
113,773

41.3
39.9

4.9
5.0

－

80.00

－

80.00

160.0039.1

3. Consolidated Projected Results for Fiscal 2018 (January 1, 2018 - December 31, 2018)(Percentage figures represent changes from the same period of previous year)
Profit attributable to
Net income
Operating income
Ordinary income
owners of parent
per share

Net salesFirst half year
Fiscal 2018

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

1,810,000
3,800,000

3.9
4.3

196,000
463,000

(3.1)
10.5

184,000
439,000(6.0)
9.6

129,000
308,000(2.2)
6.8

171.60409.72

* Notes(1) Changes in principal subsidiaries during fiscal 2017 : No
(Changes in specified subsidiaries involving change in consolidation scope)(2) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting standards, etc. : No
2) Changes in accounting policy other than 1): Yes3) Changes in accounting estimates: No4) Restatements: No* For further details, please see page 21, “Changes in accounting policy.”(3) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
December 31, 2017
813,102,321 shares
December 31, 2016
813,102,321 shares
2) Number of shares of treasury stock at period end
December 31, 2017
December 31, 2016

61,375,611 shares
29,844,837 shares

3) Average outstanding number of sharesFiscal 2017 year ended December 31, 2017
Fiscal 2016 year ended December 31, 2016

767,356,481 shares
783,240,607 shares(Reference) Summary of Non-consolidated Results(January 1, 2017 - December 31, 2017)(1) Non-consolidated Operating Results
Net sales
Fiscal 2017
Fiscal 2016

Operating income

Ordinary income

Net income

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

858,081
797,866

7.5(12.6)

138,322
137,7870.4(27.2)

249,871
185,587

34.6(18.2)

180,194
140,78428.0(17.7)Net income
per share
Fiscal 2017
Fiscal 2016

(Percentage figures represent changes from the same period of previous year)

Diluted net income
per share
Yen

Yen

234.82179.74234.41179.47(2) Non-consolidated Financial Position
Total assets

Net assets

Yen in millions

Fiscal 2017
2,053,696
Fiscal 2016
1,969,425(Reference) Total equity: Fiscal 2017 ¥1,438,103 million

Yen in millions

Ratio of total equity tototal assets

Total equity per share%

Yen

1,441,733
70.0
1,500,153
76.0
Fiscal 2016 ¥1,497,177 million

1,913.06
1,911.47* These financial statements are exempt from audit procedures* Statement regarding appropriate use of forward-looking statements and other notes
The preceding descriptions of projections and plans are “forward-looking statements”, which involve known andunknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual performance andresults to differ substantially from management’s projections and plans, and the statements are not guarantees of
future business performance. For further details, please see page 4, “Projections for fiscal 2018.”

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

[ Index ]1. Operating Results…P2(1) Analysis of Operating Results…P2(2) Analysis of Financial Position…P5(3) Basic Policy for the Appropriation of Profits and Dividends for the Fiscal 2017 and 2018

…P6

2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart…P7

3. Management Policies…P8(1) Basic Management Policies…P8(2) Management Strategies and Tasks…P8

4. Basic Policy on the Selection of Accounting Standard…P9

5. Consolidated Financial Statements and Primary Notes…P10(1) Consolidated Balance Sheet…P10(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…P12

Consolidated Statement of Income…P12

Consolidated Statement of Comprehensive Income…P13(3) Consolidated Statement of Changes in Net Assets…P14(4) Consolidated Statement of Cash Flows…P16(5) Notes to the Consolidated Financial Statements…P18(Notes regarding going concern assumption)…P18(Basic important matters for preparation of consolidated financial statements)…P18(Changes in accounting policy)…P21(Changes in presentation)…P22(Consolidated balance sheet)…P23(Consolidated statement of income)…P24(Consolidated statement of changes in net assets)…P26(Consolidated statement of cash flows)…P28(Segment information)…P29(Per share information)…P31(Significant subsequent events)…P31

6. Other…P32(1) Senior Management Changes

…P32

1

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

1. Operating Results
The Bridgestone Corporation is referred to as the “Company”, and the Company and its subsidiaries are referred toas the “Group”.
(1) Analysis of Operating Results[Operating results for fiscal 2017]1) Sales and earnings

Fiscal 2017

Increase(Decrease)

Fiscal 2016

Yen in billions

Yen in billions

Yen in billions%

3,643.4

3,337.0306.4

9Operating income

419.0

449.5

(30.5)(7)

Ordinary income

400.5

432.5

(31.9)(7)

Profit attributable to owners of parent

288.2

265.5

22.7

9

Net sales

During the fiscal year of 2017 (January 1, 2017 to December 31, 2017), the Group’s operating environment
showed signs of gradual recovery in the domestic economy. However, due to the rising uncertainty of overseas
economies, the future outlook is difficult to predict. The U.S. economy continued on a solid recovery path. The
European economy continued to show gradual recovery but remained unstable as a result of the United Kingdom’s
decision to withdrawal from the European Union (EU) and related issues. In Asia, the Chinese economic growth had
shown the signs of recovery. Overall, many overseas economies showed gradual recovery in the midst of continued
political and economic instability. In addition, tire demand in the mining industry increased along with risingcommodity prices.
Under these operating conditions, the Group continued to focus on three priority issues to realize the ultimate
goal of becoming “a truly global company” and achieving “Dan-Totsu in all aspects of its business.” The first priority
issue is “cultivating global corporate culture.” Bridgestone Corporation has focused on promoting brand strategies
through sponsorship and supporting activities for the Olympic and Paralympic Games Tokyo 2020. The Group also
expanded sales of highly competitive products and services in global markets, while building and enhancing asolutions business that extends beyond the sales of products, to accelerate technology and business model
innovation. In regard to the second and third priority issues, “developing human resources capable of global
management” and “upgrading the global management structure,” the Group continuously strives to implement
various measures, aimed at nurturing diverse human resources and reforming governance structure, by investing
appropriate costs.
As a result, net sales in fiscal 2017 were ¥3,643.4 billion, an increase of 9% from fiscal 2016; due in part toincreasing raw material costs: operating income was ¥419.0 billion, a decrease of 7%, ordinary income was ¥400.5
billion, a decrease of 7%; and profit attributable to owners of parent was ¥288.2 billion, an increase of 9%.

2

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20172) Segment Information

Fiscal 2017

Increase(Decrease)

Fiscal 2016

Yen in billions

Yen in billions

Yen in billions%

3,031.1

2,765.7

265.3

10Operating income

387.1

414.7

(27.5)(7)

Diversified
Products

Net Sales

627.8

585.7

42.1

7

Operating income

31.8

34.8

(2.9)

(8)

Consolidated
Results

Net Sales

3,643.4

3,337.0

306.4

9

419.0

449.5

(30.5)(7)

Tires

Net Sales

Operating income

In the tire segment, the Group worked to maximize sales momentum by introducing desirable products andservices globally, reinforcing fundamental competencies, and responding swiftly to demand fluctuation in eachregion. In addition, the Group implemented price increases appropriately to respond to the rising prices of raw
materials, which had persisted since the previous year.
In Japan, unit sales of tires for passenger cars and light trucks, and unit sales of tires for trucks and buses
increased steadily compared to fiscal 2016. In the Americas, unit sales of tires for passenger cars and light trucks
in North America decreased, but unit sales of tires for trucks and buses increased strongly, compared to fiscal 2016.
In Europe, unit sales of tires for passenger cars and light trucks, and unit sales of tires for trucks and buses increased
steadily, compared to fiscal 2016. In China and Asia Pacific, unit sales of tires for passenger cars and light trucks
increased steadily, and unit sales of tires for trucks and buses increased substantially, compared to fiscal 2016. In
the specialty tire business, sales of large and ultra-large off-the-road radial tires for construction and mining vehicles
increased substantially compared to fiscal 2016.
As a result, net sales in the tires segment during fiscal 2017 were ¥3,031.1 billion, an increase of 10% from fiscal
2016; operating income was ¥387.1 billion, a decrease of 7%, due to increasing raw material costs.
In the diversified products segment, net sales were ¥627.8 billion, an increase of 7% from fiscal 2016; while
operating income was ¥31.8 billion, a decrease of 8% due to a decrease in the profit of domestic business.
(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.

3

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

[Projections for fiscal 2018]
The Group's operating environment will continue to require careful attention due to such factors as fluctuations in
exchange rates and the prices of raw materials and feedstocks, an ongoing lack of clarity in the global economic
situation and international political conditions that remain unstable.
Amid such a challenging business environment, the Group projects the following results through theimplementation of Mid-Term Management Plan initiatives.

Fiscal 2018
projections

Yen in billions

Yen in billions%

1,810.0

1,742.8

67.1

4

Operating income

196.0

202.3

(6.3)

(3)

Ordinary income

184.0

195.8

(11.8)(6)

Profit attributable toowners of parent

129.0

131.8

(2.8)

(2)

3,800.0

3,643.4

156.5

4Operating income

463.0

419.0

43.9

10

Ordinary income

439.0

400.5

38.4

10

Profit attributable toowners of parent

308.0

288.2

19.7

7

Yen

Yen

%

yen/dollar

108

112

(4)

yen/euro132

122

yen/dollar

108

112

(4)

yen/euro

132

127

4

Net sales
Full-year

Increase(Decrease)

Yen in billions

Net salesFirst half

Fiscal 2017

First half
Exchange
Rate
Full-year―

8

Forward-Looking Statements
The preceding descriptions of projections and plans are “forward-looking statements,” which involve known andunknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual performance andresults to differ substantially from management’s projections and plans, and the statement are not guarantees of
future business performance.

4

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(2) Analysis of Financial Position
1) Cash flows
Fiscal 2017

Increase(Decrease)

Fiscal 2016

Yen in billions

Yen in billions

Yen in billions

Net cash provided by operating activities

418.1

444.5

(26.4)Net cash used in investing activities(200.7)(178.2)(22.5)Net cash used in financing activities(190.0)(216.4)

26.3

2.7

(4.8)

7.6

30.0

45.0

(14.9)

471.7

426.7

45.0

501.7

471.7

30.0

Effect of exchange rate changes
on cash and cash equivalents
Net increase (decrease)in cash and cash equivalents
Cash and cash equivalents
at beginning of year
Cash and cash equivalents at end of year

The Group’s cash and cash equivalents increased ¥30.0 billion during fiscal 2017, to ¥501.7 billion, comparedwith an increase of ¥45.0 billion during the previous year.
(Cash flows from operating activities)
Net cash provided by operating activities decreased ¥26.4 billion compared with the previous year, to ¥418.1
billion. The principal contributors in that cash provided included income before income taxes and non-controllinginterests of ¥420.4 billion, compared with ¥421.5 billion during the previous year, depreciation and amortization of¥200.3 billion, compared with ¥188.0 billion during the previous year. These contributors offset income taxes paidof ¥67.2 billion, compared with ¥128.7 billion during the previous year.
(Cash flows from investing activities)
Net cash used in investing activities increased ¥22.5 billion compared with the previous year, to ¥200.7 billion.
The principal contributor in that cash used included payments of ¥198.2 billion for purchase of tangible fixed assets,compared with payments of ¥186.8 billion during the previous year. The contributor offsets proceeds from sales ofinvestments in securities of ¥31.8 billion, compared with ¥14.4 billion during the previous year.
(Cash flows from financing activities)
Net cash used in financing activities decreased ¥26.3 billion compared with the previous year, to ¥190.0 billion.
The principal contributors in that cash used included repayments of long-term borrowings of ¥131.8 billion, comparedwith ¥68.3 billion during the previous year, a purchase of treasury shares of ¥150.0 billion, compared with ¥4 million
during the previous year, cash dividends paid of ¥108.6 billion, compared with ¥109.3 billion during the previous
year, and cash dividends paid to non-controlling interests of ¥11.0 billion, compared with ¥19.2 billion during theprevious year. These contributors offset a net increase in short-term borrowings and commercial paper of ¥25.6
billion, compared with a net decrease of ¥8.1 billion during the previous year, proceeds from long-term borrowingsof 37.1 billion, compared with ¥19.4 billion during the previous year, and proceeds from issuance of bonds of ¥150.0
billion (not applicable during the previous year).

5

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20172) Trends in cash flow indicators
Fiscal 2015

Fiscal 2016

Fiscal 2017

Ratio of total equity to total assets (%)

58.2

61.5

59.2

Total equity ratio on market value basis (%)

86.1

88.8

99.5

Interest-bearing debt / cash flow ratio (years)

0.8

0.8

1.1

Interest coverage ratio(times)

44.4

44.2

34.6

(Note) Ratio of total equity to total assets: Total equity / total assets
Total equity ratio on market value basis: Market capitalization / total assets
Interest-bearing debt / cash flow ratio: Interest-bearing debt / cash flow
Interest coverage ratio: cash flow / interest payments* All indices are calculated using consolidated financial figures.
* Market capitalization is calculated as closing share price at the end of period × number of shares
outstanding at the end of period (excluding treasury stock).
* For cash flow, the figure for net cash provided by operating activities in the consolidated statementsof cash flows is used. For interest-bearing debt, the sum for all liabilities in the consolidated balance
sheets for which interest is paid is used. For interest payments, the figure for interest paid in the
consolidated statements of cash flows is used.

(3) Basic Policy for the Appropriation of Profits and Dividends for the Fiscal 2017 and 2018
Regarding the interests of shareholders as an important management priority, the Company follows a basic policyof strengthening our management base in preparation for future business developments while working to improvebusiness results. In regard to distributing profits to shareholders, the Company conducts shareholder returns while
maintaining an appropriate financial position and securing the internal revenues necessary for future growthinvestments. In determining dividend payments, the Company comprehensively evaluates factors including businessresults, financial condition for the relevant fiscal period, medium-term earnings forecasts, investment plans, and cash
flows. Based on these considerations, the Company strives to live up to expectations of shareholders by issuingstable dividend payments targeting a consolidated payout ratio of 20%-40%.
The Company pays dividends twice a year, comprising year-end and interim cash dividends. Year-end cash
dividends are subject to approval by a resolution of the annual shareholders’ meeting, while interim cash dividends
are subject to approval by a resolution of the Board of Directors.
Further, the Company strives to strengthen the long-term stability of our management base by using retained
earnings to improve and expand production and sales systems and advance R&D activities in Japan and overseas.
For the fiscal 2017, the Company plans to pay a cash dividend of ¥150 per share, comprising a year-end cash
dividend of ¥80 per share and an interim cash dividend of ¥70 per share.
For the fiscal 2018, the Company plans to pay a cash dividend of ¥160 per share, comprising a year-end cash
dividend of ¥80 per share and an interim cash dividend of ¥80 per share.

6

BSAM DIVERSIFIED PRODUCTS
FIRESTONE BUILDING PRODUCTS COMPANY, LLC
AND OTHERSOTHERS
Bridgestone Corporation(5108) FINANCE
Consolidated
Financial Statements for fiscal 2017
BRIDGESTONECORPORATIONBRIDGESTONE TREASURY SINGAPORE PTE. LTD.
AND OTHERS

2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart
AS OF DECEMBER 31, 2017
Flow of products and services
TIRES

TIRE MANUFACTURING AND SALESTIRE SALESBRIDGESTONE AMERICAS TIRE OPERATIONS, LLC
BRIDGESTONE BANDAG, LLC
BRIDGESTONE CANADA INC.
BRIDGESTONE DE MEXICO, S.A. DE C.V.
BRIDGESTONE DO BRASIL INDUSTRIA E COMERCIO LTDA.
BRIDGESTONE ARGENTINA S.A.I.C.
BRIDGESTONE POZNAN SP. Z O.O.
BRIDGESTONE FRANCE S.A.S.
BRIDGESTONE HISPANIA S.A.
BRIDGESTONE SOUTH AFRICA (PTY) LTD.
BRIDGESTONE (WUXI) TIRE CO., LTD.
BRIDGESTONE INDIA PRIVATE LTD.
THAI BRIDGESTONE CO., LTD.
BRIDGESTONE TIRE MANUFACTURING (THAILAND) CO., LTD.
P.T. BRIDGESTONE TIRE INDONESIAAND OTHERSBRIDGESTONE RETAIL JAPAN CO., LTD.
BRIDGESTONE RETAIL OPERATIONS, LLC
BRIDGESTONE DEUTSCHLAND GMBH
BRIDGESTONE UK LTD.
BRIDGESTONE AUSTRALIA LTD.
BRIDGESTONE EARTHMOVER TYRES PTY. LTD.
AND OTHERSPRODUCTION AND SALES OF TIRE RAW MATERIALMANAGEMENT AND TIRE SALESFIRESTONE POLYMERS, LLC
AND OTHERSBRIDGESTONE TIRE JAPAN CO., LTD.
BRIDGESTONE AMERICAS, INC.
BRIDGESTONE EUROPE NV/SA
BRIDGESTONE MIDDLE EAST & AFRICA FZEBRIDGESTONE ASIA PACIFIC PTE. LTD.
BRIDGESTONE (CHINA) INVESTMENT CO., LTD.

BRIDGESTONE CORPORATION

DIVERSIFIED PRODUCTSCHEMICAL AND INDUSTRIAL PRODUCTS

SPORTING GOODSBRIDGESTONE DIVERSIFIED CHEMICAL PRODUCTS CO., LTD.
BRIDGESTONE DIVERSIFIED PRODUCTS JAPAN CO., LTD.
AND OTHERSBRIDGESTONE SPORTS CO., LTD.

AND OTHERSBICYCLESBRIDGESTONE CYCLE CO., LTD. AND OTHERS
BSAM DIVERSIFIED PRODUCTS

OTHERSFIRESTONE BUILDING PRODUCTS COMPANY, LLC
AND OTHERSBRIDGESTONE FINANCE CORPORATIONBRIDGESTONE TREASURY SINGAPORE PTE. LTD.
AND OTHERS

All of the above-mentioned companies are our consolidated subsidiaries.
* Renaming of subsidiary in Australia
As of January 1, 2018, BRIDGESTONE EARTHMOVER TYRES PTY. LTD. was renamed BRIDGESTONEMINING SOLUTIONS AUSTRALIA PTY. LTD.

7

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

3. Management Policies(1) Basic Management Policies
The Group follows a corporate philosophy that consists of the mission “Serving Society with Superior Quality.” Thefour foundations for fulfilling this mission are: “Seijitsu-Kyocho [Integrity and Teamwork];” “Shinshu-Dokuso [Creative
Pioneering];” “Genbutsu-Genba [Decision-Making Based on Verified, On-Site Observations];” and “Jukuryo-Danko[Decisive Action after Thorough Planning],” as well as the Safety Mission Statement, the Quality Mission Statement,
and the Environmental Mission Statement. Based on this corporate philosophy, the Group will pursue its ultimate
goal of becoming “a truly global company” and achieving “Dan-Totsu in all aspects of our business.” Further, as a
responsible global company, the Group respects the social culture and values, complies with laws and statutory
regulations, protects the global environment, and contributes through socially responsible activities in the countries
in which the Group conducts business activities.
(2) Management Strategies and Tasks
The Group’s operating environment is undergoing substantial change in a wide range of areas, includinginternational relations, politics, economics, environmental issues, and technological innovation. Social structures andconsumer attitudes are also changing significantly.
In this setting, to achieve the goals outlined above, the Group remains firmly committed to the principles of “Lean& Strategic” and “Optimize on a Group and Global basis.” In other words, the Group maintains an optimum balance
between short-term and mid- to long-term management measures, with a focus on “Lean” in the short-term and“Strategic” in the mid- to long-term. At the same time, the Group continues to implement management reforms, giving
the highest priority to optimization on a Group and Global basis. The Group also aims to ensure the targets to beconsistently delivered: “Growth: Exceed the industry average,” “Overall: ROA 6%, OP 10%, ROE 12%,” and “Each
SBU: OP 10% (Respectively),” in the Mid-Term Management Plan (announced in October 2017).
In accordance with this fundamental approach, the Group makes full use of “the Strategic Business Unit (SBU)
organization” and “the Mid-Term Management Plan (MTP)” as tools to continue to focus on three priority issues:“cultivating global corporate culture;” “developing human resources capable of global management;” and “upgrading
the global management structure,” helping to improve the quality and the speed of management reforms.
In regard to the first priority issue, “cultivating global corporate culture,” the Group ensures group and global
consistency, promoting the brand strategy as a part of a fully-integrated marketing strategy. In addition, as being oneof just 13 Worldwide Olympic Partners and a Tokyo 2020 Paralympic Games Gold Partner, Bridgestone Corporation
continues to strengthen its global brand through these partnerships. With the theme of “CHASE YOUR DREAM,”
Bridgestone Corporation launched “Team Bridgestone.” This team consists of athlete ambassadors and contract
athletes who are striving to be the very best, as well as those people who support them through their challenges.
Furthermore, the Group tries to accelerate innovation through the use of information and communication technology(ICT) and company-wide value chains in an operating environment undergoing significant changes. The Group is
striving to optimize global R&D structures and promote innovations in both technology and business models to
globally expand the Group’s highly competitive products and services and strengthen and develop business solutions.
The Group will also continue making efforts to improve all aspects of its management. By taking these measures,
the Group creates value for the customer and ensures its competitive advantage.
To achieve the second issue, “developing human resources capable of global management,” the Group will
implement measures, such as programs to develop global leaders. Further, the Group is enhancing the developmentof a work environment and human resources structure that allows diverse team members to demonstrate their fullpotential. To attain this objective, the Group has designated English as the official company language in international

8

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

meetings, including for the Global Executive Committee (Global EXCO), the highest body of global business execution.
In regard to the third issue, “upgrading the global management structure,” the Group is focused on enhancing
governance systems and expanding the diversified product business. To enhance governance systems, the Group
has shifted to the "Company with Nominating Committee, etc." model of corporate governance in March 2016, tofurther improve its internal control systems and speed of decision-making. Aiming to evolve both the efficiency andeffectiveness of management and business execution, the Group will continue to develop the global management
system, such as clarifying authority and responsibility, optimizing allocation of decision-making authority, andreviewing the SBU organization structure. To expand the diversified products business, the Group works to ensure
further growth and improvements of the diversified products business by expanding the Diversified Products
Businesses on a global basis, developing the next-generation bicycle components with its innovative technology,
and promoting Sports and Health class in the Sports Business. The Group will further strengthen its businesssolutions, including services, beyond the mere combination of various products, including tires.
In addition, the Group will increase efforts to enhance systems that support the fulfillment of its responsibilities tostakeholders. As for internal control, the Group will conduct reviews of its policy, when necessary, for the developmentof internal control systems to ensure the appropriateness of operations. In regard to corporate social responsibility(CSR), the Group formulated a CSR commitment, “Our Way to Serve,” as a measures to build a sustainable society
and strive to help address social issues in March 2017. The Group has clarified three Priority Areas: Mobility, People
and Environment, and six Management Fundamentals expected of any responsible company, and the Group will
utilize each of them as the wheels in order to improve the way people move, live, work, and play.

4. Basic Policy on the Selection of Accounting Standard
The Group prepares and discloses our Consolidated Financial Statements in accordance with “Japanese
Generally Accepted Accounting Principles”. With respect to International Financial Reporting Standards (IFRS), theGroup has the plan for voluntary adoption of IFRS in the future. The time of adoption is under consideration.

9

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

5. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheet(Yen in millions)
FY 2016

FY 2017(As of December 31, 2016)(As of December 31, 2017)

Cash and deposits

483,006

511,895

Notes and accounts receivable

455,218

503,412

Short-term investments

167,697

221,680

Merchandise and finished products

377,412397,253Work in process

35,46936,787

Raw materials and supplies

144,527

156,142

AssetsCurrent Assets

Deferred tax assets

69,65759,854Other

105,340

117,071

Allowance for doubtful accounts(16,179)(17,062)

Total Current Assets(Note2)

1,822,150(Note2)

1,987,036

Fixed Assets
Tangible fixed assets
Buildings and structures, net

526,688555,770

Machinery, equipment and vehicles, net

505,685

517,639Land

167,296

163,452

Construction in progress

160,752

146,160
90,02388,703

Other, net
Total Tangible Fixed Assets(Note1)

1,449,126(Note1)

1,473,046

Intangible fixed assets
Goodwill

22,93543,781

Other

51,20861,248

Total Intangible fixed assets

74,144

105,029

Investments and other assets
Investments in securities(Note3)

263,549(Note3)278,802

Long-term loans receivable

5,071

6,141

Deferred tax assets

37,172

40,578Net defined benefit assets

2,039

1,345

Other

64,507

68,649Allowance for doubtful accounts(1,730)(1,591)

Total Investments and Other Assets

370,609393,925

Total Fixed Assets(Note2)

1,893,880
3,716,030

Total Assets

10(Note2)

1,972,002
3,959,038

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Yen in millions)
FY 2016

FY 2017(As of December 31, 2016)(As of December 31, 2017)

Notes and accounts payable

195,603

232,698

Short-term borrowings

174,678

124,606―

20,000

Lease obligations

1,017

14,117

Income taxes payable

22,722

66,453

Deferred tax liabilities

2,144

4,817

Provision for sales returns

3,471

3,603

Accounts payable-other168,714169,144

Accrued expenses

221,738

223,777

Other

59,744

51,328

Total Current Liabilities

849,834

910,545

Bonds

90,000220,000

Long-term borrowings

70,45851,728

Lease obligations

6,616

28,576

Deferred tax liabilities

50,21453,344

Warranty reserve

27,62028,419Provision for environmental remediation

2,018

1,696

Provision for reorganization of R&D
and manufacturing base

13,951

8,322

Net defined benefit liability

215,072

202,864

Liabilities
Current Liabilities

Current portion of bonds

Long-term Liabilities

Other

44,34550,803

Total Long-term Liabilities

520,296645,754

1,370,130

1,556,300

Common stock

126,354

126,354

Capital surplus

123,005

122,984

2,163,115

2,342,822(56,151)(206,052)

2,356,323

2,386,108

174,197

176,686(1,720)(55)

Total Liabilities
Net Assets
Shareholders' Equity

Retained earnings
Treasury stock-at cost
Total Shareholders’ Equity
Accumulated Other Comprehensive Income
Net unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative instruments
Foreign currency translation adjustments(107,242)(93,479)

Remeasurements of defined benefit plans(137,698)(127,112)

Total Accumulated Other Comprehensive
Income(72,463)(43,960)

Stock Acquisition Rights

2,975

3,629

Non-controlling Interests

59,06356,961

Total Net Assets

2,345,899

2,402,738

Total Liabilities and Net Assets

3,716,030

3,959,038

11

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Yen in millions)
Previous Year

Current Year

(Year ended
December 31, 2016)(Year ended
December 31, 2017)

Net Sales

3,337,017

3,643,427

Cost of Sales

1,972,475

2,262,589

Gross Profit

1,364,541

1,380,838

Goods freightage expenses

147,502

170,686

Advertising and promotion expenses

121,228

119,148

Salaries, allowances and bonuses

246,347

258,942Retirement benefit expenses

19,672

24,198Depreciation

31,37433,628Selling, General and Administrative Expenses

Research and development expenses(Note1)

95,403(Note1)

99,791

Other

253,462

255,393

Total Selling, General and
Administrative Expenses

914,992

961,791

Operating Income

449,548

419,047

5,030

6,336

Non-operating Income
Interest income
Dividend income

8,135

7,803

Other

13,375

15,225

Total Non-operating Income

26,541

29,366

Interest expense

10,16912,104Foreign currency exchange loss

7,802

8,508

Other

25,58527,236

Total Non-operating Expenses

43,55647,849Ordinary Income

432,534

400,564

11,11728,595―

10,616

11,117

39,211Non-operating Expenses

Extraordinary Income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries andassociates
Total Extraordinary Income
Extraordinary Loss
Impairment loss

4,414

(Note2)

10,122

Expenses related to relocation of head officeof Americas Operations―(Note3)

4,745

Loss related to civil litigation in the Americas
Loss related to reorganization of R&D
and manufacturing base―

(Note4)4,484(Note2)(Note5)

Total Extraordinary Loss

17,649―22,063

19,353

Income before Income Taxes andNon-controlling Interests

421,588

420,422

Income Taxes - Current

113,488

124,708

Income Taxes - Deferred

32,661(1,702)

Total Income Taxes

146,150

123,006

Income before Non-Controlling Interests

275,438

297,416

9,887

9,140

265,550

288,275

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent

12

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Consolidated Statement of Comprehensive Income)(Yen in millions)

Income before Non-controlling Interests

Previous Year

Current Year

(Year ended
December 31, 2016)(Year ended
December 31, 2017)

275,438

297,416

Unrealized gain (loss) on available-for-salesecurities(18,109)

2,471

Deferred gain (loss) on derivative instruments(1,069)1,560

Foreign currency translation adjustments(59,702)

14,722Remeasurements of defined benefit plans
Share of other comprehensive income inaffiliates(3,375)

10,073(2,068)(590)

Total Other Comprehensive Income(84,325)

28,237

191,112

325,654

183,959

316,778

7,153

8,875

Other Comprehensive Income (loss)

Comprehensive Income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

13

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017(3) Consolidated Statement of Changes in Net Assets
Previous Year (Year ended December 31, 2016)(Yen in millions)Shareholders’ equity

Beginning balance
Cumulative effects of changes
in accounting policies
Restated balanceCommon stock

Capital surplus

126,354

123,025

Retainedearnings

Treasury stockat cost

2,014,497(56,212)(7,280)126,354

123,025

2,007,216

Total
2,207,664(7,280)(56,212)2,200,383(Changes in the year)
Cash dividends
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Purchase of shares of
consolidated subsidiaries
Net changes in the year
Total changes in the year
Ending balance(109,652)(109,652)

265,550

265,550
(4)

(4)

65

46

(18)
(0)

(0)

－

(19)

155,898

61

155,940

126,354

123,005

2,163,115(56,151)

2,356,323

Accumulated other comprehensive income

Beginning balance
Cumulative effects of changes
in accounting policies
Restated balance

Net unrealized
gain (loss)
on availablefor-salesecurities
192,324Deferredgain (loss)
on derivative
instruments

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

(776)

(55,406)(134,736)

7,667

55

Stock
acquisitionrights

Noncontrollinginterests

2,469

70,473

192,324(776)(47,739)(134,680)

2,469

70,473(Changes in the year)
Cash dividends
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Purchase of shares of
consolidated subsidiaries
Net changes in the year

(18,126)(944)(59,503)(3,017)506(11,409)

Total changes in the year

(18,126)(944)(59,503)(3,017)506(11,409)

Ending balance

174,197(1,720)(107,242)(137,698)

2,975

59,06314

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

Current Year (Year ended December 31, 2017)(Yen in millions)Shareholders’ equity

Beginning balanceCommon stock

Capital surplus

126,354

123,005

Retainedearnings

Treasury stockat cost

2,163,115(56,151)

Total
2,356,323(Changes in the year)
Cash dividends
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Purchase of shares of
consolidated subsidiaries
Net changes in the year
Total changes in the year
Ending balance(108,463)(108,463)

288,275

288,275(21)(150,012)(150,012)

111

90

(105)

(105)

－

(21)

179,707(149,901)

29,784

126,354

122,984

2,342,822(206,052)

2,386,108

Accumulated other comprehensive income

Beginning balance

Net unrealized
gain (loss)
on availablefor-salesecurities
174,197

Stockacquisitionrights

Noncontrollinginterests(137,698)

2,975

59,063

13,762

10,585653(2,102)

1,665

13,762

10,585653(2,102)(55)(93,479)(127,112)

3,629

56,961

Deferredgain (loss)
on derivative
instruments

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans(1,720)(107,242)

2,489

1,665

2,489
176,686(Changes in the year)
Cash dividends
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Purchase of shares of
consolidated subsidiaries
Net changes in the year
Total changes in the year
Ending balance

15

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017(4) Consolidated Statement of Cash Flows(Yen in millions)
Previous Year

Current Year

(Year ended
December 31, 2016)(Year ended
December 31, 2017)

Cash Flows from Operating Activities
Income before income taxes and non-controllinginterests

421,588

420,422

Depreciation and amortization

188,062

200,377

1,998

4,560

Increase (decrease) in net defined benefit
liability(45,185)

1,192Interest and dividend income(13,166)(14,140)

Interest expense

10,16912,104Foreign currency exchange loss (gain)(6,178)3,982

Loss (gain) on sales of investment insecurities(11,117)(28,595)―(10,616)

4,414

10,122

Expenses related to relocation of head officeof Americas Operations

―

4,745

Loss related to civil litigation in the Americas

―

4,484

17,649―9,600(93,946)

Decrease (increase) in inventories(16,047)(26,123)

Increase (decrease) in notes and accounts
payable22,69935,096

Amortization of goodwill

Loss (gain) on sales of shares of subsidiaries
and associates
Impairment loss

Loss related to reorganization of R&D
and manufacturing base
Decrease (increase) in notes and accounts
receivable

Other(14,336)(27,690)

Subtotal

570,151495,978

Interest and dividends received

13,173

14,115Interest paid

(10,051)(12,078)

Payments related to relocation of head officeof Americas Operations―(4,786)

Payments related to civil litigation in the Americas―(4,546)

Payments related to reorganization of R&D
and manufacturing base―

(3,321)

Income taxes paid

(128,737)(67,252)

Net Cash Provided by Operating Activities

444,535

418,109

Payments for purchase of tangible fixed assets(186,814)(198,259)

Proceeds from sales of tangible fixed assets

4,792

8,628

Payments for purchase of intangible assets(5,900)(6,295)

Payments for purchase of investment insecurities(1,289)(4,841)

Proceeds from sales of investments insecurities

14,43331,831

Payments of long-term loans receivable(3,401)(2,394)

Cash Flows from Investing Activities

Other
Net Cash Used in Investing Activities

16

(97)

(29,447)(178,276)(200,777)

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Yen in millions)
Previous Year

Current Year

(Year ended
December 31, 2016)(Year ended
December 31, 2017)

Cash Flows from Financing Activities
Net increase (decrease) in short-termborrowings and commercial paper(8,174)25,607

Proceeds from long-term borrowings

19,46337,164

Repayments of long-term borrowings(68,395)(131,848)

Proceeds from issuance of bonds―

150,000

Payments for redemption of bonds(30,000)―(4)(150,012)

Cash dividends paid

(109,386)(108,654)

Cash dividends paid to non-controlling interests(19,267)(11,015)(639)(1,310)(216,404)(190,069)(4,840)2,794

45,01430,056

Purchase of treasury shares

Other
Net Cash Used in Financing Activities
Effect of Exchange Rate Changes on Cash andCash Equivalents
Net Increase (Decrease) in Cash and Cash
Equivalents

471,741

426,727

Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year

(Note1)

17471,741(Note1)

501,797

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017(5) Notes to the Consolidated Financial Statements(Notes regarding going concern assumption)
Not applicable(Basic important matters for preparation of consolidated financial statements)
1. Scope of consolidation
1) Number of consolidated subsidiaries: 288 companies
Names of principal companies:
Refer to “2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart”
Changes in the scope of consolidation:
Additions: 15 companies (mainly, increased by acquisition)
Deletions: 21 companies (mainly, decreased by disposal)
2) There are no non-consolidated subsidiaries.
2. Scope of application of equity-method accounting
1) Number of equity-method affiliates: 147 companies
Name of principal company
BRISA BRIDGESTONE SABANCI LASTIK SANAYI VE TICARET A.S.
Changes in the scope of equity-method accounting
Additions: 2 companies (increased by investment)
Deletions: 3 companies (mainly, decreased by disposal)
2) There are no non-consolidated subsidiaries or affiliates to which equity-method accounting is not applied.
3. Fiscal year of consolidated subsidiaries
BRIDGESTONE INDIA PRIVATE Ltd.’s fiscal year ends on March 31. Its financial statements areprepared on the basis of a provisional settlement of account conforming to the accounts settlement
performed as of the date of the consolidated financial statements.
4. Summary of significant accounting policies
1) Valuation policies and methods for investments in securities
Available-for-sale-securities
With market value － Fair value based on the market price, etc., at the fiscal year end.
(Unrealized gain and loss, net of tax are recorded in net assets, and themoving-average method is used to calculate the cost of securities sold.)
Without market value － Primarily the moving-average cost method.
2) Valuation policies and methods for derivatives
In principle, fair value.
3) Valuation policies and methods for inventories
Inventories are principally stated at lower of cost determined by the moving-average method or net selling
value. Meanwhile, inventories held by subsidiaries in the Americas are substantially stated at the lower ofcost, which is determined principally by the last-in, first-out method.

18

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20174) Depreciation method for fixed assets
For tangible fixed assets, the declining-balance method is used at BRIDGESTONE CORPORATION (the“Company”) and its domestic subsidiaries, and the straight-line method is used at its overseas subsidiaries.
For intangible fixed assets, the straight-line method is used.
5) Accounting policies for reserves and allowancesa) Allowance for doubtful accounts
In order to reserve for loss from the nonpayment of claims, the actual credit loss rate is used to calculate
the amount to be recorded for general claims and for designated claims for which there is a concern of
nonpayment, an amount based on the evaluation of potential loss in the receivables outstanding isrecorded.
b) Provision for sales returns
Principally, in order to provide for future losses on the return of snow tires, historical losses are used toestimate the amount of future losses, and that amount is recorded.
c) Warranty reserve
Warranty reserve , included in other liabilities, is estimated and recorded at the time of sale to provide for
future potential costs, such as costs related to after-sales services, in amounts considered to beappropriate based on past experience of the Company and its subsidiaries (collectively, the “Group”).
d) Provision for environmental remediation
In order to reserve for outlays for legally required removal and disposal of polychlorinated biphenyl(“PCB”) and other, the estimated amount of future obligations is recorded.
e) Provision for reorganization of R&D and manufacturing baseIn order to reserve for outlays related to reorganization of R&D and manufacturing base, the estimatedamount of future obligations is recorded.
6) Accounting policies for retirement benefita) Method of attributing projected benefit to periods
To attribute projected benefit to periods of service up to the end of the current fiscal year, the Company,
its domestic subsidiaries, and certain overseas subsidiaries attribute the benefit under the benefit formulabasis. In addition, at certain overseas subsidiaries, an estimated total amount of expenses for
postretirement benefits except for pensions is allotted based on the number of years of service provided
by the employees.
b) Method of recognizing unrecognized actuarial gain/loss and past service costs
Past service costs are treated as expenses using the straight-line method over a fixed number of years
based on the average remaining years of service of the employees in the year in which the past service
costs occurred (10 years for the Company and its domestic subsidiaries, 3 to 12 years for its overseas
subsidiaries).
Actuarial gain/loss for the Company and its domestic subsidiaries is treated as an expense using thestraight-line method over a fixed number of years (10 years) based on the average remaining years ofservice of the employees in the year in which the gain/loss occurs, recorded from the following fiscal year.
For certain of its overseas subsidiaries, unrecognized actuarial gain/loss at the beginning of the fiscal yearthat exceeds 10% of the larger of retirement benefit obligations or pension plan assets is treated as an
expense using the straight-line method over a fixed number of years (8 to 12 years) based on the averageremaining years of service of the employees.

19Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20177) Accounting policies for the translation of foreign currency-denominated assets and liabilities into Japanese yen
Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at
the exchange rate at the consolidated balance sheet date. The foreign currency exchange gain and loss
from translation are recognized in income.
Assets and liabilities of the Company’s overseas subsidiaries are translated into Japanese yen at the current
exchange rate at the consolidated balance sheet date. Revenue and expense accounts of the Company’s
overseas subsidiaries are translated into Japanese yen at the average annual exchange rate. Differences
arising from such translation are shown as foreign currency translation adjustments and non-controllinginterests in a separate component of net assets.
8) Hedge accountinga) Hedge accounting method
Deferred hedge accounting is applied. Designation accounting is used for forward foreign exchange andforeign currency swaps that meet the requirements for designation accounting, and exceptional
accounting is used for interest rate swaps that meet the requirements for exceptional accounting.
b) Hedging instrument and items covered
Instruments

Items covered

Forward foreign exchange contracts

Foreign currency-denominated monetaryclaims and obligations, and forecasted
foreign currency-denominated transactions

Foreign currency swaps

Borrowings and bonds

Interest rate swaps

Borrowings

Commodity swaps

Raw materialsc) Hedging policy
Forward foreign exchange transactions are used only to cover actual foreign exchange needs, and foreignexchange swaps are made to match the principal amount and term of the hedged foreign currencydenominated obligation. Interest rate swaps are entered into for the amount of borrowings only.
Commodity swaps are entered into for the trade amount of raw materials. It is the Group’s policy not to
use any derivative transactions for speculative purposes.
d) Method for evaluating the effectiveness of hedges
The validity of hedges is evaluated based on a comparison of total fluctuations in the cash flow or
fluctuations in the market value of the hedged item with the total fluctuations in the cash flow or fluctuationsin the market value of the hedging instrument. However, for items covered by designation or exceptional
accounting, the validity of the hedge is not evaluated.
9) Amortization of goodwill
Goodwill is amortized using the straight-line method over the period for which it is deemed to have effect,
but not to exceed 20 years.
10) Definition of cash and cash equivalents for Consolidated Statement of Cash Flow
Cash and cash equivalents included in the consolidated statement of cash flows consists of cash on hand,deposits that can be withdrawn at any time or are easily convertible, and short-term investments maturing
within three months from the date of acquisition and for which the risk from price movements is deemed
negligible.

20

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 201711) Other significant items related to the preparation of consolidated financial statements
Accounting treatment of consumption tax
Consumption tax and local consumption taxes are excluded.

(Changes in accounting policy)(Application of International Financial Reporting Standards (IFRS) to Foreign Subsidiaries)
BRIDGESTONE EUROPE NV/SA (BSEU) has applied IFRS from fiscal 2017, formerly "Generally Accepted
Accounting Principles (US GAAP)". In determining initial application of IFRS in BSEU, the Company
comprehensively evaluates factors including accounting trends and the plan for voluntary application of IFRS as
the Group.
As BSEU applied the revision in this policy retrospectively and the cumulative effect of the revision was reflectedon the net assets at the beginning of fiscal 2016, the consolidated financial statements for the previous fiscal
year changed. The main changes were as follows: retained earnings at the beginning of previous fiscal year
decreased ¥7,280 million and foreign currency translation adjustments increased ¥7,667 million.

21

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Changes in presentation)(Consolidated Balance Sheet)“Goodwill” was included in “Intangible fixed assets” at the end of fiscal 2016. “Goodwill” is presented separately
since it has exceeded 1% of amount of total assets at the end of fiscal 2017. To reflect this change in method ofpresentation, the Consolidated Financial Statements for the previous fiscal year have been restated.
As a result, the ¥74,144 million that had been previously presented in “Intangible fixed assets” in the Consolidated
Balance Sheet for the previous fiscal year have been restated as the ¥22,935 million in “Goodwill” and the ¥51,208
million in “Other”.
(Consolidated Statement of Cash Flows)
1) “Amortization of goodwill”, “Increase (decrease) in allowance for doubtful accounts” and “Share of (profit)
loss of entities accounted for using equity method”
In the Cash Flows from Operating Activities section, “Amortization of goodwill” included in “Other” during fiscal
2016 is presented separately since the materiality of the amount has increased during fiscal 2017. “Increase(decrease) in allowance for doubtful accounts” and “Share of (profit) loss of entities accounted for using equity
method” presented separately during fiscal 2016, are included in “Other” since the materiality of the amount
has decreased during fiscal 2017. To reflect these changes in method of presentation, the Consolidated
Financial Statements for the previous fiscal year have been restated.
As a result, in the Cash Flows from Operating Activities section, the (¥16,340) million that had been previously
presented as “Increase (decrease) in allowance for doubtful accounts”, the ¥2,726 million that had beenpreviously presented as “Share of (profit) loss of entities accounted for using equity method” and the ¥1,276
million that had been previously presented as “Other” in the Consolidated Statement of Cash Flows for theprevious fiscal year, have been restated as “Amortization of goodwill” of the ¥1,998 million and “Other” of the(¥14,336) million.
2) “Payments for purchase of investment in securities” and “Proceeds from collection of long-term loans
receivable”
In the Cash Flows from Investing Activities section, “Payments for purchase of investment in securities”
included in “Other” during fiscal 2016 is presented separately since the materiality of the amount has increased
during fiscal 2017. “Proceeds from collection of long-term loans receivable” presented separately during fiscal
2016 is included in “Other” since the materiality of the amount has decreased during fiscal 2017. To reflect
these changes in method of presentation, the Consolidated Financial Statements for the previous fiscal year
have been restated.
As a result, in the Cash Flows from Investing Activities section, the ¥2,063 million that had been previously
presented as “Proceeds from collection of long-term loans receivable” and the (¥3,449) million that had beenpreviously presented as “Other” in the Consolidated Statement of Cash Flows for the previous fiscal year havebeen restated as “Payments for purchase of investment in securities” of the (¥1,289) million and “Other” of the(¥97) million.
3) “Purchase of treasury shares”
In the Cash Flows from Financing Activities section, “Purchase of treasury shares” included in “Other” during
fiscal 2016 is presented separately since the materiality of the amount has increased during fiscal 2017. To
reflect this changes in method of presentation, the Consolidated Financial Statements for the previous fiscal
year have been restated.
As a result, in the Cash Flows from Financing Activities section, the (¥643) million that had been previously
presented as “Other” in the Consolidated Statement of Cash Flows for the previous fiscal year have been
restated as “Purchase of treasury shares” of the (¥4) million and “Other” of the (¥639) million.

22

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Consolidated balance sheet)
Note 1 Accumulated depreciation of tangible fixed asset
Previous Year(As of December 31, 2016)¥2,579,882 million

Current Year(As of December 31, 2017)¥2,718,181 million

Note 2 Assets pledged as collateralPrevious Year(As of December 31, 2016)¥843 million

Current Year(As of December 31, 2017)¥513 million

Obligations corresponding to the preceding
Previous Year(As of December 31, 2016)
Short-term borrowings
Long-term borrowings¥37 million¥74

Note 3 Assets or liabilities related to non-consolidated subsidiaries and affiliates
Previous Year(As of December 31, 2016)
Investments in securities¥14,177 million

Current Year(As of December 31, 2017)¥17 million－

Current Year(As of December 31, 2017)¥16,610 million

Note 4 Balance of trade notes discounted
Previous Year(As of December 31, 2016)¥221 million

23

Current Year(As of December 31, 2017)¥212 million

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Consolidated statement of income)Note 1 Research and development expenses
Previous Year
(Year ended December 31, 2016)

Current Year
(Year ended December 31, 2017)¥95,403 million¥99,791 million

General and administrative expenses

Note 2 Impairment loss
Previous Year (Year ended December 31, 2016)
The Group groups their assets for businesses in accordance with the classifications used for internal management.
Assets to be disposed (assets that the Group plans to dispose of through scrapping or sale) and idle assets are groupedon an individual basis.
In the previous period, for assets for business whose profitability has declined, assets to be disposed through planned
scrapping or sale, and idle assets that are not expected to be used in the future, the carrying amounts were reduced totheir recoverable amounts. As a result, the Group recognized an impairment loss of ¥6,830 million as extraordinary loss.
The loss consists of ¥4,538 million for buildings and structures, ¥2,115 million for machinery, equipment and vehicles,and ¥175 million for others.
Note that ¥2,415 million of the total impairment loss of ¥6,830 million was recorded as a “loss related to reorganizationof R&D and manufacturing base” under the extraordinary loss.
Classification

Use

Location

Amount(Yen in millions)

Assets for business

Buildings and structures, Machinery,equipment and vehicles, and others

Indonesia,
Japan and others

2,940

Assets to be disposed

Buildings and structures, Machinery,equipment and vehicles, and others

Japan,
China and others

3,853

Idle assets

Land

Japan

35

The recoverable amounts of assets for business are principally measured by value in use, which is calculated bydiscounting future cash flows at a discount rate of 3.7% to 15.0%. The recoverable amounts of assets to be disposed andidle assets are measured at the net selling price. Assets to be scrapped are evaluated at memorandum value, and assets
to be sold and idle assets are evaluated at the estimated selling price and other.

24

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

Current Year (Year ended December 31, 2017)
The Group groups their assets for businesses in accordance with the classifications used for internalmanagement. Assets to be disposed (assets that the Group plans to dispose of through scrapping or sale) andidle assets are grouped on an individual basis.
In the current period, for assets for business whose profitability has declined, assets to be disposed throughplanned scrapping or sale, and idle assets that are not expected to be used in the future, the carrying amounts
were reduced to their recoverable amounts. As a result, the Group recognized an impairment loss of ¥10,122
million as extraordinary loss. The loss consists of ¥4,625 million for other intangible fixed assets, ¥2,416 million
for machinery, equipment and vehicles, ¥1,218 million for buildings and structures, ¥973 million for land, and¥888 million for others.
Classification

Use

Location

Amount(Yen in millions)

Assets for business

Machinery, equipment and vehicles,
Buildings and structures, Land andothersThailand, Japan,
Mexico and others

3,771

Assets to be disposed

Other tangible fixed assets, Land andothersJapan and others

6,307

Idle assets

Land

Japan

43

The recoverable amounts of assets for business are principally measured by value in use, which is calculated bydiscounting future cash flows at a discount rate of 3.5% to 9.0%. The recoverable amounts of assets to be disposed andidle assets are measured at the net selling price. Assets to be scrapped are evaluated at memorandum value, and assets
to be sold and idle assets are evaluated at the estimated selling price and other.

Notes 3 Expenses related to relocation of head office of Americas Operations
Current Year (Year ended December 31, 2017)
Relevant expenses are recognized in relation to relocation of head office of BRIDGESTONE AMERICAS,
INC., corporate headquarter in Americas, and aggregation of its operation sites in the United States.

Notes 4 Loss related to civil litigation in the Americas
Current Year (Year ended December 31, 2017)
Relevant loss are recognized in relation to civil litigation in respect of automotive components sales in
Americas.

Note 5 Loss related to reorganization of R&D and manufacturing basePrevious Year (Year ended December 31, 2016)
In order to reorganize the research and development, and manufacturing base in Kodaira city in Tokyo, relevant
expenses are recognized in relation to relocation and aggregation of the production of radial tires for passenger
cars and small trucks in the Tokyo plants to other domestic plants and the expansion of the research anddevelopment facilities.

25

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Consolidated statement of changes in net assets)
Previous Year（Year ended 31 December 2016)
1. Type and total number of shares issued / Type and number of treasury stock
As of
As of
Increase
Decrease
January 1, 2016
December 31, 2016
Number of shares issued
Common stock
813,102――
813,102(Thousands of shares)
Treasury stock
Common stock
29,8781
34
29,844(Thousands of shares)(see notes 1 & 2 )Notes 1: The increase of treasury stock consists of the purchase of 1 thousand shares according to the requests from theshareholders who have odd-lot shares.
2: The decrease of treasury stock consists of 34 thousand shares used for the exercise of stock options and other.

2. Stock acquisition rights

Details

Filingcompany

Type of shares
to be used asstockacquisitionrightsStock acquisitionrights as stock
options
Total

Number of shares to be used for Stock acquisition rights
As ofJanuary
1, 2016

Increase

Decrease

As ofDecember31, 2016

Outstanding
amount as of
fiscal year end(yen in millions)

―

―

―

―

―

2,975

―

―

―

―

―

2,975

3. Dividends(1) Dividend payments
Resolution

Type

Annual Shareholders’Meeting, March 24, 2016
Board of Directors,
August 9, 2016

CommonStockCommonStock

Total dividends(yen in millions)

Dividend per
share

54,825¥70

54,826¥70

Record date

Effective date

December 31,
2015
June 30,
2016

March 25,2016
September 1,
2016(2) Dividends whose record date is in the current year and effective date is in the following fiscal year
Total dividends
Dividend per
Resolution
Type
SourceRecord date( yen in millions )share
Annual Shareholders’CommonRetained
December 31,
54,828¥70
Meeting, March 24, 2017
Stockearnings
2016

26

Effective date
March 27,2017

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

Current Year (Year ended 31 December 2017)
1. Type and total number of shares issued / Type and number of treasury stock
As of
As of
Increase
Decrease
January 1, 2017
December 31, 2017
Number of shares issued
Common stock
813,102――
813,102(Thousands of shares)
Treasury stock
Common stock
29,84431,56837
61,375(Thousands of shares)(see notes 1, 2 & 3 )Notes 1: The increase of treasury stock consists of the acquisition of Treasury Stock of 31,565 thousand shares pursuant to theresolution the Board of Directors meeting, and the purchase of 2 thousand shares according to the requests from theshareholders who have odd-lot shares.
2: The decrease of treasury stock consists of 37 thousand shares used for the exercise of stock options and other.
3: At the Board of Directors meeting held on February 17, 2017, the Company resolved to cancel its treasury stock inaccordance with Article 178 of the Companies Act. However, the cancellation of the following treasury stock, as resolved
at the Board of Directors meeting, was not completed as of December 31, 2017.
1) Carrying Amount:2) Class of shares:
3) Number of shares:¥173,126 million
Common stock of Bridgestone Corporation
51,565,900 shares

The cancellation of the treasury stock above was completed on January 19, 2018.

2. Stock acquisition rights

Details

Filingcompany

Type of shares
to be used asstockacquisitionrightsStock acquisitionrights as stock
options
Total

Number of shares to be used for Stock acquisition rights
As ofJanuary
1, 2017

Increase

Decrease

As ofDecember31, 2017

Outstanding
amount as of
fiscal year end(yen in millions)

―

―

―

―

―

3,629

―

―

―

―

―

3,629

3. Dividends(1) Dividend payments
Resolution

Type

Annual Shareholders’Meeting, March 24, 2017
Board of Directors,
August 9, 2017

CommonStockCommonStock

Total dividends(yen in millions)

Dividend per
share

54,828¥70

53,634¥70

Record date

Effective date

December 31,
2016
June 30,
2017

March 27,2017
September 1,
2017(2) Dividends whose record date is in the current year and effective date is in the following fiscal year
Total dividends
Dividend per
Resolution
Type
SourceRecord date( yen in millions )share
Annual Shareholders’CommonRetained
December 31,
60,138¥80
Meeting, March 23, 2018
Stockearnings
201727

Effective date
March 26,2018

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Consolidated statement of cash flows)(Note 1) Reconciliation between cash and cash equivalents at the fiscal year end and the amount shown in theConsolidated Balance Sheet(Yen in millions)
Previous Year
(Year ended December 31, 2016)

Current Year
(Year ended December 31, 2017)(As of December 31, 2016)(As of December 31, 2017)

Cash and deposits

483,006

511,895

Short-term investments

167,697

221,680

Total

650,703

733,575

Time deposits, bonds, etc. withterms of more than three months(178,961)(231,778)

Cash and cash equivalents

471,741

501,79728

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Segment information)
1. Overview of reporting segments
The Group’s reporting segments are components of the Group whose separate financial information is
obtainable, and the Board of Directors and the Management Committee regularly consider these segments inorder to decide the allocation of business resources and evaluate business performance.
The Group’s reporting segments consist mainly of Tire business including the production and sale of tires andtubes, sale of wheels and accessories, the production and sale of retread material and services, auto
maintenance, and Diversified products business including Chemical and Industrial Products, BSAM Diversified
Products (Note), sporting goods, bicycles, etc. Thus, the Group has two reporting segments: Tires and Diversified
products.
(Note) BSAM Diversified Products: A business under BRIDGESTONE AMERICAS, INC. supplying commercial roofing materials etc.

2. Methods of calculating amounts for Sales and Income (Loss), assets and other items by reporting segment
The accounting treatment methods for each reported business segment are broadly similar to those outlined in“Basic important matters for preparation of consolidated financial statements”. Reporting segment income figures
are on an operating income basis. Internal sales and transfers between segments are mainly based on prices forthird-party transactions and manufacturing cost.
3. Information regarding Sales and Income (Loss), assets and other items by reporting segment
Consolidated Results for Fiscal 2016 (January 1, 2016 - December 31, 2016)
Diversified
Products

Tires
Net sales:
External customers
Inter-segment
Total
Segment income(Operating income)Segment assets
Other
Depreciation andamortization
Amortization of goodwill
Investment for equitymethod affiliates
Increase in tangible andintangible fixed assets

Adjustments(notes)

Total(Yen in millions)
Consolidated

2,759,274
6,500
2,765,775

577,7427,968
585,7113,337,017
14,4683,351,486―(14,468)(14,468)

3,337,017―
3,337,017

414,71134,819449,53018

449,548

3,308,732

409,100

3,717,833(1,802)

3,716,030

168,295

19,766

188,062―

188,062

1,153

845

1,998

―

1,998

13,873309

14,182(4)

14,177183,264

16,073

199,338―

199,338

Notes: The adjustments are as follows.
(Note1) Adjustments of segment income refer to elimination of inter-segment transactions.
(Note2) Adjustments of segment assets refer to elimination of inter-segment receivables and payables.

29

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Yen in millions)

Consolidated Results for Fiscal 2017 (January 1, 2017 - December 31, 2017)
Tires

Diversified
Products

Total

Adjustments(notes)

Net sales:
External customers
3,021,000
622,427
3,643,427―
Inter-segment
10,155
5,420
15,576(15,576)
Total
3,031,156
627,848
3,659,004(15,576)
Segment income
387,158
31,879419,038
9(Operating income)Segment assets
3,513,679
447,760
3,961,439(2,401)
Other
Depreciation and
179,790
20,587200,377―
Amortization
Amortization of goodwill
2,702
1,858
4,560
―
Investment for equity16,195
418
16,613(3)
method affiliates
Increase in tangible and225,975
33,782259,757―
intangible fixed assets
Notes: The adjustments are as follows.
(Note1) Adjustments of segment income refer to elimination of inter-segment transactions.
(Note2) Adjustments of segment assets refer to elimination of inter-segment receivables and payables.

30

Consolidated
3,643,427―
3,643,427
419,047
3,959,038
200,377
4,560
16,610259,757Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

(Per share information)
(Yen)
Items

Previous Year
(Year ended December 31, 2016)

Current Year
(Year ended December 31, 2017)

Total equity per share

2,915.85

3,115.69

Net income per share

339.04375.67

Diluted net income per share

338.52375.01

Note: Total equity per share and diluted net income per share are calculated based on the following:
Previous Year
(Year ended December 31, 2016)(Yen in millions)

Current Year
(Year ended December 31, 2017)(Yen in millions)

265,550

288,275――

265,550

288,275

Average number of shares heldby common shareholders during
term
Diluted net income per share(Thousands of shares)
783,240(Thousands of shares)
767,356(Thousands of shares)(Thousands of shares)

Adjustments of profit attributableto owners of parent
Increase of common stock(stock option portion included in
the above)

―

―

1,197

1,355

(1,197)(1,355)

Summary of residual shares with―――――――――――――――――
no dilution effect and therefore notincluded in calculation of diluted
net income per share―――――――――――――――――Net income per share
Profit attributable toowners of parent
Amount not belonging tocommon shareholders
Profit attributable to owners ofparent corresponding tocommon shareholders(Significant subsequent events)
Not applicable

31

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

6. Other(1) Senior Management Changes
1) New Members of the Board of Directors

Current occupation in parentheses

To be assumed after approval at the Company’s Annual Shareholders' Meeting on March 23, 2018
Member of the Board

Yojiro Shiba[ Director, Vice Chairman,
AMUSE INC. ]Member of the Board

Yoko Suzuki[ Partner of Suzuki Sogo Law
Office ]* Mr. Yojiro Shiba and Ms. Yoko Suzuki are candidates for outside directors as set forth in Article 2(xv) of theCompanies Act.

2) Resigning Member of the Board of Directors

Plan after resignation in parentheses

Effective March 23, 2018
Member of the Board

Sakie Tachibana[ ― ]Fukushima3) Re-elected Members of the Board of Directors

Current occupation in parentheses

To be assumed after approval at the Company’s Annual Shareholders' Meeting on March 23, 2018
Member of the Board

Masaaki Tsuya[ Member of the Board

CEO and

CEO and

Representative Executive Officer

Representative Executive Officer

Concurrently Chairman of theConcurrently Chairman of the

Board

Board ]

Member of the Board

Kazuhisa Nishigai[ Member of the Board

COO and

COO and

Representative Executive Officer

Representative Executive Officer

Concurrently Chief Technology

Concurrently Chief Technology

Officer

Officer

Responsible for Technology

Responsible for Technology ]Member of the Board

Narumi Zaitsu[ Member of the Board ]32

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

Member of the Board

Kenichi Togami[ Member of the Board ]Member of the Board

Scott Trevor Davis[ Member of the Board ]Member of the Board

Yuri Okina[ Member of the Board ]Member of the Board

Kenichi Masuda[ Member of the Board ]Member of the Board

Kenzo Yamamoto[ Member of the Board ]Member of the Board

Keikou Terui[ Member of the Board ]Member of the Board

Seiichi Sasa

[ Member of the Board ]* Mr. Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto,
Mr. Keikou Terui and Mr. Seiichi Sasa are candidates for outside directors as set forth in Article 2(xv) of theCompanies Act.

4) Members of the Nominating Committee

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 23, 2018
Member of the Board

Scott Trevor Davis[ Member of the Board ]Member of the Board

Yuri Okina[ Member of the Board ]Member of the Board

Kenichi Masuda[ Member of the Board ]* Mr. Scott Trevor Davis, Ms. Yuri Okina and Mr. Kenichi Masuda are candidates for outside directors as set
forth in Article 2(xv) of the Companies Act.

5) Members of the Audit Committee

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 23, 2018
Member of the Board

Kenzo Yamamoto[ Member of the Board ]Member of the Board

Keikou Terui[ Member of the Board ]Member of the Board

Seiichi Sasa

[ Member of the Board ]Member of the Board

Yojiro Shiba[ Member of the Board ]33

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

Member of the Board

Yoko Suzuki[ Member of the Board ]Member of the Board

Narumi Zaitsu[ Member of the Board ]Member of the Board

Kenichi Togami[ Member of the Board ]* Mr. Kenzo Yamamoto, Mr. Keikou Terui, Mr. Seiichi Sasa, Mr. Yojiro Shiba and Ms. Yoko Suzuki are
candidates for outside directors as set forth in Article 2(xv) of the Companies Act.

6) Members of the Compensation Committee

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 23, 2018
Member of the Board

Scott Trevor Davis[ Member of the Board ]Member of the Board

Yuri Okina[ Member of the Board ]Member of the Board

Kenichi Masuda[ Member of the Board ]* Mr. Scott Trevor Davis, Ms. Yuri Okina and Mr. Kenichi Masuda are candidates for outside directors as set
forth in Article 2(xv) of the Companies Act.

7) Re-elected Members of Executive Officers

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 23, 2018
Member of the Board

Masaaki Tsuya[ Member of the Board

CEO and

CEO and

Representative Executive Officer

Representative Executive Officer

Concurrently Chairman of theConcurrently Chairman of the

Board

Board ]

Member of the Board

Kazuhisa Nishigai[ Member of the Board

COO and

COO and

Representative Executive Officer

Representative Executive Officer

Concurrently Chief Technology

Concurrently Chief Technology

Officer

Officer

Responsible for Technology

Responsible for Technology ]34

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

Executive Vice President andShuichi Ishibashi[ Executive Vice President andExecutive Officer

Executive Officer

Chief Quality Management Officer

Chief Quality Management Officer

Responsible for Quality

Responsible for Quality

Management and CSR;Management and CSR;

Concurrently responsible for

Concurrently responsible for

Global Original Equipment andGlobal Original Equipment andGlobal Business Strategy;

Global Business Strategy;

Concurrently responsible for

Concurrently responsible for

Global Solutions Business andGlobal Solutions Business andDiversified Products;

Diversified Products;

Concurrently Chair, Global Mining

Concurrently Chair, Global Mining

and Agricultural Solutions

and Agricultural Solutions

in-house Company;

in-house Company;

Concurrently Chair, Diversified

Concurrently Chair, Diversified

Products Solutions in-house

Products Solutions in-house

Company

Company

Concurrently responsible for

Concurrently responsible for

Global Solutions Business;

Global Solutions Business;

Concurrently CEO, Global Mining

Concurrently CEO, Global Mining

and Agricultural Solutions

and Agricultural Solutions

in-house Company

in-house Company ]Executive Vice President andAkihiro Eto[ Executive Vice President andExecutive Officer

Executive Officer

Responsible for Japan Tire SBU;

Responsible for Japan Tire SBU;

Concurrently Chair, Japan Tire

Concurrently Chair, Japan Tire

SBU;

SBU;

Concurrently responsible for

Concurrently responsible forGroup Strategy PlanningGroup Strategy Planning

Chief Financial Officer

Chief Financial Officer

FinanceFinance ]Executive Vice President andAsahiko Nishiyama[ Executive Vice President andExecutive Officer

Executive Officer

Responsible for Olympic andResponsible for Olympic andParalympic

Paralympic

Concurrently responsible for

Concurrently responsible forDiversified Products, Sports andDiversified Products, Sports andCycle Business;

Cycle Business;

Concurrently Chairman ofConcurrently Chairman ofBridgestone Sports Co., Ltd.;

Bridgestone Sports Co., Ltd.;

Concurrently Chairman ofConcurrently Chairman ofBridgestone Cycle Co., Ltd.

Bridgestone Cycle Co., Ltd. ]35

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2017

Senior Vice President andGordon Knapp[ Senior Vice President andExecutive Officer of Bridgestone

Executive Officer of Bridgestone

Corporation

Corporation

Member of the Board, CEO andMember of the Board, CEO andPresident of Bridgestone

President of Bridgestone

Americas, Inc.

Americas, Inc. ]Senior Vice President andPaolo Ferrari[ Senior Vice President andExecutive Officer of Bridgestone

Executive Officer of Bridgestone

Corporation

Corporation

Member of the Board, CEO andMember of the Board, CEO andPresident, concurrently Chief

President, concurrently Chief

Operating Officer of Bridgestone

Operating Officer of Bridgestone

Europe NV/SA

Europe NV/SA

Chairman of Bridgestone

Chairman of Bridgestone

Americas, Inc.

Americas, Inc. ]8) New Member of Corporate Officers

Current occupation in parentheses

Effective March 23, 2018

Vice President and Officer

Akio Kusano[ Director, Tire Development

Consumer Tire Development;

Division Ⅱ;

Concurrently Director, Tire

Concurrently General Manager,

Development Division Ⅱ;

Advanced Tire Development

Concurrently General Manager,

Department ]Advanced Tire Development
Department

36

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20179) Promotion of Corporate Officers

Current occupation in parentheses

Effective March 23, 2018

Vice President and Senior

Masahiro Isobe[ Vice President and Officer

Officer

Original Equipment Tire Sales

Responsible for Japan Tire

Japan;

Sales;

Concurrently Director, O.E.

Concurrently Vice Chair, Japan

Tire Sales Japan DivisionⅠ;

Tire SBU;

Concurrently Assistant to Vice

Concurrently Chairman ofPresident and Senior Officer,

Bridgestone Tire Japan Co., Ltd.

Global Original Equipment
Strategy ]37