Consolidated Financial Statements
for the First Half of the Fiscal Year Ending December 31, 2019
August 9, 2019
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 CorporationStock exchange listings: Tokyo, Nagoya, Fukuoka
Code number:5108
URL:https://www.bridgestone.com/
Representative: Masaaki Tsuya, Chairman of the Board
CEO and Representative Executive Officer
Contact:
Tetsuo Kenmochi,Treasurer, General Manager
Telephone:+81-3-6836-3100
Scheduled date of quarterly securities report submission:
August 9, 2019
Scheduled date of dividend payment commencement:
September 2, 2019
Supplementary information for the quarterly financial statements to be prepared:
Yes
Meeting to explain for the quarterly financial statements to be held:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Half of Fiscal 2019 (January 1, 2019 - June 30, 2019)(1) Consolidated Operating Results(Percentage figures represent changes from the same period of previous year)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent

Yen in millions

Six months ended
1,744,662
June 30, 2019
Six months ended
1,775,408
June 30, 2018
(Note) Comprehensive Income:%Yen in millions%

Yen in millions%

Yen in millions

%

(1.7)

158,409(20.6)

154,402(19.1)

118,783(11.8)

1.9

199,434(1.4)

190,764(2.6)

134,618

2.1

Six months ended June 30, 2019
Six months ended June 30, 2018

Net income
per share
Six months ended
June 30, 2019
Six months ended
June 30, 2018

¥79,995million [74.2%]¥45,915 million[(66.3)%]

Diluted net income
per share
YenYen161.30161.04179.08178.76(2) Consolidated Financial Position
Total assets

Ratio of total equity tototal assets

Net assets

Yen in millions

Yen in millions%

As of June 30, 2019

3,944,018

2,311,253

57.2

As of December 31, 2018

3,840,269

2,436,162

61.9

As of June 30, 2019
As of December 31, 2018

¥2,255,150million¥2,378,511million(Reference) Total equity:

2. Dividends
1st quarterend

2nd quarter
end

Yen

Yen

Annual Dividend
3rd quarterend
Yen－80.00－FY 2018－80.00FY 2019
FY 2019－(Projection)(Note) Changes from the latest forecasts released: NoYear -end

Total

Yen

Yen

80.00

160.0080.00

160.003. Consolidated Projected Results for Fiscal 2019 (January 1, 2019 - December 31, 2019)(Percentage figures represent changes from the same period of previous year)
Profit attributable toNet income
Operating income
Ordinary income
owners of parent
per share

Net sales

Yen in millions%

Yen in millions%

Yen in millions%

YenFY 2019
3,620,000 (0.8)
375,000(Note) Changes from the latest forecasts released: Yes

Yen in millions

%

(6.9)

355,000(6.9)

290,000(0.6)

398.04

* Notes(1) Changes in principal subsidiaries during the six months ended June 30, 2019 : No(Changes in specified subsidiaries involving change in consolidation scope)(2) Application of special accounting treatments for consolidated quarterly financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting standards, etc. : Yes
2) Changes in accounting policy other than 1): No3) Changes in accounting estimates: No4) Restatements: No(4) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
June 30, 2019
761,536,421 shares
December 31, 2018
761,536,421 shares
2) Number of shares of treasury stock at period end:
June 30, 2019
December 31, 2018

42,088,436shares
9,726,528shares

3) Average outstanding number of shares (during the first half):
First Half ended June 30, 2019
736,400,589 sharesFirst Half ended June 30, 2018751,733,584 shares* Implementation status about the quarterly review
These financial statements are exempt from quarterly review by Certified Public Accountants or Audit Firm.
* 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 andfinancial results to differ substantially from management’s projections and plans, and the statements are notguarantees of future business performance.

Bridgestone Corporation (5108)

First half results of fiscal 2019

[Index]Consolidated Financial Statements and Other Information (Notes)…P2(1) Consolidated Balance Sheet…P2(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…P4Consolidated Statement of Income…P4Consolidated Statement of Comprehensive Income…P5(3) Consolidated Statement of Cash Flows…P6(4) Notes to the Consolidated Financial Statements…P7(Notes regarding going concern assumption)…P7(Notes regarding significant changes in the amount of shareholders’ equity)…P7(Application of special accounting treatments for Consolidated Quarterly Financial Statements)…P7(Changes in accounting policies, Changes in accounting estimates and Restatements)…P71

Bridgestone Corporation (5108)

First half results of fiscal 2019

Consolidated Financial Statements and Other Information (Notes)(1) Consolidated Balance Sheet(Yen in millions)
FY 2018FY 2019 1H(As of December 31, 2018)(As of June 30, 2019)

Cash and deposits

440,378434,793

Notes and accounts receivable

601,417580,694

Short-term investments

153,853

144,438

Merchandise and finished products

407,608

425,512Work in process

37,904

39,680Raw materials and supplies

171,720

163,228

Other

121,286

134,675

Allowance for doubtful accounts(21,729)(21,723)

1,912,440

1,901,299

Buildings and structures, net

550,399

580,309

Machinery, equipment and vehicles, net

491,035

488,242

Other, net

426,936

428,337

1,468,371

1,496,889

Goodwill

41,381

142,210

Other

60,07250,878

Total Intangible fixed assets

101,454

193,089

Investments in securities

219,970

202,220

Other

139,557

151,579

Allowance for doubtful accounts(1,524)(1,058)

Total Investments and Other Assets

358,003352,740

Total Fixed Assets

1,927,829

2,042,719

Total Assets

3,840,269

3,944,018

AssetsCurrent Assets

Total Current Assets
Fixed Assets
Tangible fixed assets

Total Tangible Fixed Assets
Intangible fixed assets

Investments and other assets

2Bridgestone Corporation (5108)

First half results of fiscal 2019

(Yen in millions)
FY 2018

FY 2019 1H(As of December 31, 2018)(As of June 30, 2019)

Notes and accounts payable

233,970

221,215

Short-term borrowings

100,627

78,676

Commercial paper

20,95568,294Current portion of bonds

70,00070,000

Lease obligations

1,686

11,115

Income taxes payable

15,073

26,663－5,310Accounts payable-other

182,204

141,478

Other

262,601

268,978

Total Current Liabilities

887,119

891,731

Bonds

150,000

350,000

Long-term borrowings

38,04137,061

Lease obligations

27,18264,579Net defined benefit liability

196,005

189,242

Other

105,759

100,150

Total Long-term Liabilities

516,988741,034

1,404,107

1,632,765

Common stock

126,354

126,354

Capital surplus

121,997

121,997

2,362,736

2,419,516(32,648)(169,917)

2,578,440

2,497,950

108,888

96,736

1,730

1,946

Foreign currency translation adjustments(174,850)(214,659)

Remeasurements of defined benefit plans(135,696)(126,823)

Total Accumulated Other Comprehensive
Income(199,928)(242,799)

3,452

3,302

Liabilities
Current Liabilities

Provision for recallLong-term Liabilities

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

Stock Acquisition Rights
Non-controlling Interests

54,19852,800Total Net Assets

2,436,162

2,311,253

Total Liabilities and Net Assets

3,840,269

3,944,018

3

Bridgestone Corporation (5108)

First half results of fiscal 2019(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of IncomeFirst Half

(Yen in millions)
FY 2018 1H

FY 2019 1H(Six months ended
June 30, 2018)(Six months ended
June 30, 2019)

Net Sales

1,775,408

1,744,662

Cost of Sales

1,089,608

1,084,689

Gross Profit

685,799

659,973

Goods freightage expenses

88,76692,003Advertising and promotion expenses

58,27854,160

Salaries, allowances and bonuses

132,178

131,458

Retirement benefit expenses

10,940

10,154

Depreciation

17,38920,889Selling, General and Administrative Expenses

Research and development expenses

49,382

51,337

Other

129,430

141,560

Total Selling, General and
Administrative Expenses

486,365

501,564

Operating Income

199,434

158,409

Interest income

2,582

2,883

Dividend income

5,153

4,402

Settlement received

3,792

4,980

Non-operating Income

Other

7,702

8,851

Total Non-operating Income

19,23021,118

7,226

5,290

Non-operating Expenses
Interest expense
Foreign currency exchange loss

4,911

4,916

Other

15,762

14,916

Total Non-operating Expenses

27,90025,124

Ordinary Income

190,764

154,402

Gain on sales of investment securities―

12,272

Total Extraordinary Income―

12,272

Loss related to recall―

5,310Total Extraordinary Loss―5,310

190,764

161,364

Extraordinary Income

Extraordinary Loss

Income before Income Taxes andNon-controlling Interests
Income Taxes

51,67938,781

Income before Non-Controlling Interests

139,084

122,582

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

44,465

3,798

134,618

118,783Bridgestone Corporation (5108)

Consolidated Statement of Comprehensive Income
First HalfFirst half results of fiscal 2019

(Yen in millions)

Income before Non-controlling Interests

FY 2018 1H

FY 2019 1H(Six months endedJune 30, 2018)(Six months ended
June 30, 2019)

139,084

122,582(25,270)(12,152)

Other Comprehensive Income (loss)
Unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivative instruments

5407

Foreign currency translation adjustments(78,992)(38,516)

Remeasurements of defined benefit plans
Share of other comprehensive income inaffiliates

11,193

8,661

(104)

(987)

Total Other Comprehensive Income(93,168)(42,587)

45,91579,995

Owners of parent

44,39075,912

Non-controlling interests

1,525

4,082

Comprehensive Income
Comprehensive income attributable to:5Bridgestone Corporation (5108)

First half results of fiscal 2019(3) Consolidated Statement of Cash Flows(Yen in millions)
FY 2018 1H

FY 2019 1H(Six m onths ended(Six m onths ended

June 30, 2018)

June 30, 2019)

Cash Flows from Operating Activities
Incom e before Incom e Taxes andNon-controlling Interests
Depreciation and am ortization

190,764

161,364

98,018

107,655

Am ortization of goodwill

2,062

3,754

Increase (decrease) in net defined benefitliability

4,856

3,745

Increase (decrease) in provision for sales returns(3,603)(3,531)

Interest and dividend incom e(7,736)(7,286)

Interest expense

7,226

5,290

Share of (profit) loss of entities accounted
for using equity m ethod

(180)

3,013

(3,792)(4,980)(265)(12,272)

Settlem ent received
Loss (gain) on sales of investm ent insecurities－5,310Decrease (increase) in notes and accounts
receivable(19,538)

9,831

Decrease (increase) in inventories(47,314)(25,269)(7,623)(27,245)

Loss related to recall

Increase (decrease) in notes and accounts
payableOther(10,410)2,788Subtotal

202,461

222,171

Interest and dividends received

7,752

7,272

Interest paid

(6,586)(4,634)(77,702)(32,466)

Incom e taxes paid
Am ount of settlem ent received
Net Cash Provided by Operating Activities

3,792

4,980

129,717

197,323(115,911)(128,767)

Cash Flows from Investing Activities
Paym ents for purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets

4,708

4,596

Paym ents for purchase of intangible assets(2,848)(4,225)367

14,168(170)(109,205)

Proceeds from sales of investm ents insecurities
Purchase of investm ents in subsidiaries
resulting in change in scope of consolidation
Other(1,775)

4,116(115,630)(219,317)

Net increase (decrease) in short-termborrowings and com m ercial paper

20,35937,740

Proceeds from long-term borrowings

8,733

1,711

Repaym ents of long-term borrowings

Net Cash Used in Investing Activities
Cash Flows from Financing Activities(25,993)(12,800)

Proceeds from issuance of bonds－200,000

Paym ents for redem ption of bonds(20,000)－(779)(6,324)(4)(137,510)(60,113)(60,131)(5,898)(5,720)

Paym ents of lease obligations
Purchase of treasury shares
Cash dividends paid
Cash dividends paid to non-controlling interests
Other58(1,740)(83,640)

15,223(18,878)915(88,431)(5,854)

Cash and Cash Equivalents at Beginning of Year

501,797433,916

Cash and Cash Equivalents at End of current period

413,365

428,061

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

6Bridgestone Corporation (5108)

First half results of fiscal 2019(4)Notes to the Consolidated Financial Statements(Notes regarding going concern assumption)
Not applicable(Notes regarding significant changes in the amount of shareholders' equity)
The company acquired its own shares (32,425,900 shares) based on the resolution at the board of directors
held on February 15, 2019. Due mainly to the acquisition, treasury stock - at cost increased ¥137,269 million
compared with the end of the previous fiscal year, to ¥169,917 million.

(Application of special accounting treatments for Consolidated Quarterly Financial Statements)
Calculation for income tax expenses
Income tax expenses was calculated based upon an estimated effective tax rate for fiscal 2019.
(Changes in accounting policies, Changes in accounting estimates and Restatements)
Changes in accounting policies(Adoption of ASU2014-09 "Revenue from Contracts with Customers.")
Certain overseas subsidiaries which apply U.S. GAAP adopted ASU2014-09 "Revenue from Contracts withCustomers." (May 28, 2014) from the beginning of fiscal 2019.
Due to the adoption of ASU2014-09, the entity should recognize revenue to depict the transfer of promised goods
or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in
the exchange for those goods or services.
Certain overseas subsidiaries adopted the method by which the cumulative effect of applying this standard wasrecognized at the date of initial application.
The effect of this change on retained earnings at the beginning of fiscal 2019 and operating income, ordinary
income, and income before income taxes and non-controlling interests for the consolidated cumulative
second quarter of fiscal 2019 was immaterial.
(Adoption of IFRS16 "Leases")
Certain overseas subsidiaries which apply the International Financial Reporting Standards adopted IFRS16"Leases" (January 13, 2016) from the beginning of fiscal 2019.
IFRS16 "Leases" requires recognition of substantially all lease assets and lease liabilities on the balance sheet.
Certain overseas subsidiaries adopted the method by which the cumulative effect of applying this standard
was recognized at the date of initial application.
As a result, assets increased by ¥49,606 million , Liabilities increased by ¥51,605 million, and retainedearnings decreased by ¥1,998 million at the beginning of fiscal 2019.
The increase in assets was mainly due to the increase in tangible fixed assets, and the increase in liabilities ismainly due to the increase in lease obligations.
The effect of this change on operating income, ordinary income, and income before income taxes andnon-controlling interests for the consolidated cumulative second quarter of fiscal 2019 was immaterial.

7