Financial Results for 1st Half of Fiscal 2018
Bridgestone Corporation

August 9, 2018

１. Business and Financial Performancefor 1st Half of Fiscal 2018

P.3

２. Consolidated Projections for Fiscal 2018

P.10

2 /17

1.

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Business and Financial Performancefor 1st Half of Fiscal 2018

Business Environment Surrounding Bridgestone Group
Currency
Exchange●USD: Stronger JPY, EUR: Weaker JPY vs PY
1USD=109yen, 1EUR=131yen

Raw Material
Prices●Natural Rubber : Lower vs PY
Crude Oil: Higher vs PY

Tire Demand(PSR/TBR)●Despite weaker demand in Japan due to early buying（Ref.）2017H1：1USD＝112yen 1EUR＝122yen

in 2017, global tire demand continues to growsteadily.
Tire Demand (Year-on-Year/unit base%)

Market trend of natural rubber and crude oil(Average)

2018

2017

1st Half

2nd Half

1st Half

Natural Rubber〈TSR20〉*（￠/kg）

181

148

143

Natural Rubber〈RSS#3〉*（￠/kg）

229

170

Crude Oil
50
51
〈WTI〉（$/bbl）*Source: Singapore Commodity Exchange Limited

4 /17*1 Note: The numbers of demand are estimated by Bridgestone Corporation

PSR

TBR

OE

REP

OE

REPJapan

100％

94％

96％

87％

168

N.America

97％

101％

118％

105％

65Europe

102％

99％

103％

(USTMA97%)(USTMA98%) *2

100％*2 Source: U.S. Tire Manufactures Association

Tire Sales Growth for 1st Half of Fiscal 2018
PSR
OE & REP
GlobalOE & REP
99％

OE

ORR ※
103％

OE
Japan

103%

Japan

97%

N. America

112%

N. America

136%

Europe102%Europe116%

China/
Asia Pacific109％

China/
Asia Pacific

134％

REP

5 /17

GlobalTBR(Year-on-Year, unit base)Ultra-Large

115％

Large

105％

-Steady growth in H1

PSR

REP

HRD (≧ 18”)

Japan

94%

Japan

86%

N. America

93%

N. America

89%

Europe99%

Europe97%

China/
Asia Pacific93％

China/
Asia Pacific102％Global120%※ Note: Based on rubber weight for
Ultra-Large and Large ORR

Consolidated Results for 1st Half of Fiscal 2018
Note: Figures within parentheses mean minus(Yen in billions)2017
st1 Half Results

2018st
1 Half Results

vs PY（%）(Ref. Feb 16, 2018
announcement)st2018 1 Half Projections

Net Sales

1,742.8

1,775.4+2

1,810.0

Tires

1,439.7

1,474.0+2

1,490.0

310.7

311.6

-320.0

202.3

199.4

(1)

196.0

Diversified Products

Operating Income(Ratio) 11.6%(Ratio) 11.2%(Ratio) (0.4pt)(Ratio) 10.8Tires

185.1

190.6+3

180.0

Diversified Products

17.1

8.9(48)16.0

Ordinary Income

195.8

190.7

(3)

184.0

Profit Attributable toOwners of Parent

131.8

134.6+2

129.0

Dividends perShare

70 yen80 yen+10 yen

80 yenUS Dollar / Yen rate:

112 yen109 yen(3) Yen108 yenEuro / Yen rate:

122 yen131 yen+9 yen132 yen

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Analysis of Consolidated Operating Income
for 1st Half of Fiscal 2018
(Yen in billions)
250
230
SGA

(16.0)

210

Raw Materials
Depreciation

(3.0)

190

Price, Mix,
Volume etc.

(0.9)

ForeignExch. Gain

+17.0

±0.0

170150

202.3

199.4

1301102017 H1
Operating Income
Note: Figures within parentheses mean minus

7 /17(2.9)

2018 H1
Operating Income

Financial Results for 1st Half of Fiscal 2018:Geographic Segments
Note: Figures within parentheses mean minus

2017
st1 Half Results

2018
st1 Half Results

vs PY（%）(Ref. Feb 16, 2018
announcement)2018 1st Half Projections

1,742.8

1,775.4+2

1,810.0

Japan

534.5

549.4

+3560.0

The Americas

863.3

861.0

-870.0

EMEA

270.9

295.1

+9300.0

China, Asia-Pacific

310.5320.9+3320.0

202.3

199.4

(1)

196.0

Japan

65.0

72.1

+1167.0

The Americas

89.8

89.3

(1)

93.0

EMEA

5.3

5.6

+67.5

China, Asia-Pacific

34.8

32.5

(7)

32.0

Consolidated
Net Sales

Consolidated
Operating Income

8 /17(Yen in billions)

B/S Highlights for 1st Half of Fiscal 2018

(Yen in billions)

Note: Figures within parentheses mean minus

FY 2017(As of Dec.31, 2017)

FY 2018 1st Half
(As of Jun.30, 2018)

vs Dec. 31, 2017

Total Assets

3,959.0

3,789.5(169.5)incl. Total Current Assets

1,987.01,908.0(78.9)

incl. Total Fixed Assets

1,972.0

1,881.4(90.5)Net Assets

2,402.7

2,382.4(20.2)

Ratio of total equity to total
assets

59.2%

61.4%

+2.2%

Interest-Bearing Debt(Net)(42.7)

22.4

+65.1

2017
1st Half Results

2018
1st Half Results

vs PY

Capital Expenditure

77.8

109.8

+32.0

Depreciation

96.0

98.0

+1.9

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2. Consolidated Projections for Fiscal 201810 /17

Forecast of Business Environment Surrounding(“Projection”; released on Feb. 16 , 2018)
Bridgestone Groupth●USD: Stronger JPY, EUR: Weaker JPY vs PY
1USD=108yen, 1EUR=128yen

CurrencyExchange（Ref.）2017
FY 1USD＝112yen
Projection FY 1USD＝108yen

Raw MaterialPrices●Natural Rubber : Lower vs PY
Crude Oil: Higher vs PY

Tire Demand(PSR/TBR)●Continues steady growth globally
Estimated Tire Demand (Year-on-Year/unit base%)

Currency Exchange Assumption（Yen）

US Dollar

Euro

1EUR＝127yen
1EUR＝132yen

Note: The numbers of demand are estimated by Bridgestone Corporation2018

PSR

1st Half

2nd Half

FY109108108131125128TBR

OEREP

OE

REP

Japan

100％

99％

97％

99％

N.America

99％

101％

111％

104％

Europe103％

99％

104%

104％

Asia*1102%

102%

106%

102%

*1 Total of Thailand, Indonesia, India and China

11 /17

Tire Sales Growth Projections for Fiscal 2018(Year-on-Year, unit base)

PSR
OE & REP
GlobalOE & REP
～+5%

OE

ORR ※
+6%～+10%

OE
Japan

～+5%

Japan

around ±0%

N. America+11%～+15%

N. America+21%～+25%

Europe～+5%Europe+16%～+20%

China/
Asia Pacific+6%～+10%China/
Asia Pacific+16%～+20%

REP

12 /17

GlobalTBR

Ultra-Large

120％

Large

110％

-Sustained growth in
Ultra-Large and Large ORR

PSR

REP

HRD (≧ 18”)

Japan～+5%Japan～+5%

N. America～-5%

N. America

around ±0%

Europe～+5%Europe+6%～+10%

China/
Asia Pacific～-5%China/
Asia Pacificaround ±0%

Global115%※ Note: Based on rubber weight for
Ultra-Large and Large ORR

Consolidated Projections for Fiscal 2018

(Yen in billions)

2017Results

2018
Projections

VS PY（%）（Ref. Feb 16, 2018
announcement）
2018 Projections

Net Sales

3,643.4

3,700.0+23,800.0

Tires

3,031.1

3,080.0+23,170.0

627.8

620.0(1)

640.0

419.0

430.0

+3463.0

Diversified
Products

Operating Income(Ratio) 11.5%(Ratio) 11.6%(Ratio) +0.1pt(Ratio) 12.2%

Tires

387.1

413.0

+7429.0

DiversifiedProducts

31.8

16.0

(5.0)

34.0

Ordinary Income

400.5

403.0

+1439.0

Profit Attributable toOwners of Parent

288.2

305.0

+6308.0

Dividends per Share

150 yen

160 yen+10 yen

160 yen

Yen/US dollar rate:

112 yen108 yen(4) Yen108 yen

Yen/Euro rate:

127 yen

128 yen+1 yen132 yen

13 /17

Analysis of Consolidated Operating Income
for Fiscal 2018
(Yen in billions)Exchange rate Sensitivity(full year)

450SGA(35.0)

USD: 3.5bil Yen
EUR: 0.5bil Yen
ForeignExch. Gain400(10.0)

Price, Mix,
Volume etc.

+56.9

Depreciation Raw Materials(8.0) +7.0

430.0

419.0
3503002017
Operating Income

14 /17+10.9

2018
Operating Income

Projections for Fiscal 2018:
Geographic Segments(Yen in billions)

Note: Figures within parentheses mean minus

2017
Results

2018
Projectionsvs PY（%）(Ref. Feb 16, 2018
announcement)2018 Projections

3,643.4

3,700.0+23,800.0Japan

1,147.8

1,180.0+31,200.0

The Americas

1,776.5

1,750.0△11,800.0

EMEA559.8590.0+5610.0

China, Asia-Pacific

648.8

670.0

+3690.0

419.0

430.0

+3463.0

Japan

160.2

156.0

△3164.0

The Americas

187.5

197.0+5220.0

EMEA

13.6

21.0

+5423.0

China, Asia-Pacific

62.9

67.0

+672.0Consolidated
Net Sales

Consolidated
Operating Income

15 /17

Summary
Consolidated Financial Results
H1Results

In line with the guidance on operating income
with proper SGA control

FYProjection

Increase operating income from PY through;-sales growth incl. Solution business-continuous sales mix improvementHighlights●Steady demand growth globally, sales growth with sales promotion●Ultra-large and Large ORR sales growth throughout the year
●In line with the guidance on positive impact of selling price●The Americas: To increase operating income from PY- Strong sales growth in ≧18 tires by expansion of Wilson and Joliette plants- Focus on product mix and cost improvement- New national distributor, Tirehub launched in July, 201816 /17

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

Copyright © Bridgestone Corporation

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