Financial Results for 3rd Quarter of Fiscal 2019
Bridgestone Corporation

November 8, 2019

１. Business and Financial Performancefor 3 rd Quarter of Fiscal 2019

P.3

２. Consolidated Projections for Fiscal 2019P.92 /16

1. Business and Financial Performancefor 3 rd Quarter of Fiscal 20193 /16

Business Environment Surrounding Bridgestone Group●USD/EUR: Stronger JPY vs PY
1USD=107yen, 1EUR=119yen

Currency
ExchangeRef.）2018Q3：1USD＝112yen 1EUR＝130yen●Weaker emerging currency●Natural Rubber: Higher, Crude oil: Lower vs PY

Raw MaterialPrices20182019

Market trend of natural rubberand crude oil (Average)

Q3

Q4

Q1

Q2

Q3

Natural Rubber（￠/kg） *〈TSR20〉

133

127

140

151

135

Natural Rubber（￠/kg） *〈RSS#3〉

145

140

164

183

159

Crude Oil 〈WTI〉（$/bbl）

7059556056*Source: Singapore Commodity Exchange Limited

Tire Demand  Japan : Early buying due to price increase and consumption tax
 Weaker TBR REP in NA and OE market in global(PSR/TBR)
Tire Demand (Year-on-Year/unit base%)
PSR

Q3

Note: The numbers of demand are estimated by Bridgestone CorporationTBR

OE

REPOE

REPJapan

106%

124%

99％

141%

N.America

97％

Europe96％4 /16103％（USTMA101%)

98％

99％
85％

PSR

9 months

86%(USTMA 98%)

101％

TBR

OE

REP

OE

REPJapan

103%

107%

97％

118%

N.America

94％

Europe93％

103％（USTMA101%)

97%*2 Source: U.S. Tire Manufactures Association

106％
94％

89%

*2

(USTMA 97%)

104％

Tire Sales Growth for 3rd Quarter of Fiscal 2019
PSR

TBR

ORR
Q3

9 months

100％

105％

(100%)(105%)

115％

105％(135％)(115％)OE & REP

OE & REP

GlobalQ3

9 months

Q3

9 months

100％

98％

98％

99％

OE
Japan

108%

105％

97%

96％

N.America

93%

91％

100%

105％

Europe

99%

101％

74%

92％

China/
Asia Pacific

93％

96％

83％93％PSRHRD (≧18”)

REP

REP
123%

107％

126%

113％

N.America

103%

100％

95%

92％

Europe

98%

94％

100%

100％

China/
Asia Pacific

91％

90％

87％

90％

5 /16

Ultra-Large
(REP)
Large
(REP)

OE

Japan

(Year-on-Year, unit base)Global(REP)Q3

9 months

110%

110％

(120%)(115%)

Consolidated Results for 3rd Quarter of Fiscal 2019

（Yen in billions）

Note: Figures within parentheses mean minus

2019
3 rd Quarter Results

Net Sales

2019
9 Months Results

vs PY(%)

vs PY(%)

890.7

(1)

2,635.3

(1)

Tires

742.7(1)2,198.7(1)

Diversified
Products

152.0

(1)

448.9

(4)

91.9+1

250.3

(14)

(Ratio) 10.3%(Ratio) +0.1pt(Ratio) 9.5%(Ratio) (1.4)pt

Tires

89.6

-248.1(11)

Diversified
Products

2.2+182.1(80)

Ordinary Income

88.1+3242.5(12)

Profit Attributable toOwners of Parent

86.6+2205.4(6)

US Dollar / Yen rate:

107 yen(5) Yen109 yen(1) YenEuro / Yen rate:

119 yen(11) yen

123 yen(8) yenOperating Income

6 /16

Analysis of Consolidated Operating Income for 3rd Quarterfor Fiscal 2019
(Yen in billions)Price Raw Materials+25.0 (9.0) Volume Depreciation+4.0 (16.0)

SGA(25.0)

Others(11.5)(※) Tom Tom Telematics
Consolidation

300
Including Adoption ofIFRS 16 “Leases”(6.0)

ForeignExch. Loss(8.0)(19.0) +21.0
250(32.5)

290.8

・ Webfleet Solutions（※）
・ Accounting Reclass etc

250.3

200

7 /16

2018 9 months
Operating Income(40.5)

Excludes Foreign Exch. Loss (32.5)

2019
9 months
2503
Operating Income

Financial Results for 3rd Quarter of Fiscal 2019:
Geographic Segments（Yen in billions）

Note: Figures within parentheses mean minus

2019vs PY (％)

2019
9 Months
Results

vs PY(％)

890.7(1)2,635.3(1)Japan

279.3+6833.1+2

The Americas

435.2(4)1,290.8(2)EMEA

145.5(3)

440.6

(1)

China, Asia-Pacific146.0(5)450.6(5)Consolidated
Operating Income

91.9+1250.3(14)Japan

29.6+1284.2(15)The Americas

39.6(6)117.2(11)EMEA

3.2(28)

9.7(4)

China, Asia-Pacific11.1(14)34.7(24)

3 rd Quarter
Results

Consolidated
Net Sales

8 /162. Consolidated Projections for Fiscal 20199 /16

Forecast of Business Environment Surrounding(“Projection”; released on Aug 9 , 2019)
Bridgestone GroupthCurrency Exchange Assumption

Currency
Exchange（Yen)●USD/EUR: Stronger JPY vs PY●Weaker Emerging currency

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

Tire Demand(PSR/TBR)●Severer business environment
due to weaker OE demand /Asian economy and US/China
Trade war impact

2018

2019

Projection2019 FYFYH1H2FY

US Dollar

110110106108107

Euro130124118121

122

Market trend of natural rubberand crude oil (Average)

2018
FY

H1Q3

Natural Rubber（￠/kg） *〈TSR20〉

136

146

135

Natural Rubber（￠/kg） *〈RSS#3〉

155

174

159

Crude Oil 〈WTI〉（$/bbl）

65

57

56

Estimated Tire Demand(Year-on-Year/unit base%)

2019
FY
Higher vs PY
Lower vs PY

Projection 2019 FY

PSR

PSR

TBR

TBR

OE

REP

OE

REP

OE

REP

OE

REP

Japan

101％

99％

96％

101％

102％

99％

97％

102％

N.America

92％

102％

100％

89％

93％

103％

99％

95％

Europe

94％

97％

89％

103％

94％

98％

95％

100％

Asia*1

90％

99％

92％

97％

100％

101％

98％

98％

Note: The numbers of demand are estimated by Bridgestone Corporation*1 Total of Thailand, Indonesia, India, and China

10 /16

Tire Sales Growth Projections for Fiscal 2019
PSR

TBR

OE & REP
GlobalORR

OE & REP～-5%OE

Globalaround ±0%

Ultra-Large
(REP)
Large
(REP)

OE
Japan

～+5%

Japan

～-5%

N. America-11%～-15%

N. America

around ±0%

Europe～+5%Europe-6%～-10%China/
Asia Pacific～-5%China/
Asia Pacific-6%～-10%REP

11 /16(Year-on-Year, unit base)105％(105%)

100％(105%)

PSR

REP

HRD(≧18”）

Japan

around ±0%

Japan

～+5%

N. America

around ±0%

N. America-6%～-10%Europe～-5%

Europe～+5%China/
Asia Pacific-6%～-10%China/
Asia Pacific-6%～-10%Global(REP)

105%(110%)

Consolidated Projections for Fiscal 2019

(Yen in billions)

Note: Figures within parentheses mean minus

2018
Results

2019
Projections

vs PY（%）(Ref. Aug 9, 2019
announcement）
2019 Projections

Net Sales

3,650.1

3,490.0(4)3,620.0

Tires

3,051.4

2,910.0(5)3,030.0

618.7

580.0

(6)

590.0

402.7

330.0

(18)

375.0

(Ratio) 11.0%(Ratio) 9.5%

(Ratio) (1.6)pt(Ratio) 10.4%

393.9

330.0

(16)

373.0

8.90-2.0

Ordinary Income

381.1

315.0

(17)

355.0

Profit Attributable toOwners of Parent

291.6

275.0

(6)

290.0

US Dollar / Yen rate:

110 yen108 yen(2) Yen107 yenEuro / Yen rate:

130 yen

121 yen(9) yen

122 yenDiversified
Products

Operating Income
Tires
Diversified
Products

12 /16

Analysis of Consolidated Operating Income for Fiscal 2019
(Yen in billions)
500
Price

RawMaterials+38.0 (3.0)

450Volume(12.0) Depreciation(22.0)

SGA(27.0)

Others(29.7)

400
Including Adoption ofIFRS 16 “Leases”

ForeignExch. Loss±0△17.0(27.0) +28.0350(※) Tom Tom Telematics
Consolidation(57.7)
300

・ Webfleet Solutions（※）
・ Accounting Reclass etc

402.7

330.0
2502002018
Operating Income

13 /16(72.7)

Excludes Foreign Exch. Loss (55.7)

2019
3300.00
Operating Income

Summary
Consolidated Financial Results
Q3 Results

Operating Income was above PY due to price and volume
increase (incl ORR tire) despite negative currency effect

FY Projection

Revised 2019 guidance given external market dynamicsHighlights●Global OE demand weaker than expected, while early buying due to priceincrease and consumption tax in Q3 in Japan●Moderate ORR tire growth (Ultra-large and Large) due to weaker
OE demand●Under the weaker demand circumstances, manage prices and improve
product-mix, and monitor market trend closely and control supply /demand balance.
●Maintained sales growth in PSR-HRD tires (≧18 tires)
14 /16

Adopt International Financial Reporting Standards (IFRS)
and Change in Reporting Segments
Changes from 2020
● Adopt IFRS to improve the quality of managerial accounting at the Bridgestone Group.
● Change in reporting segments to facilitate more accurate disclosure based on SBUs

Schedule for Transition to Disclosure Based on IFRS● The consolidated performance forecasts for the fiscal year ending December 31, 2020are scheduled to be announced in February 2020 and will use IFRS / New Segments.
● From announcement of financial results for the first quarter of the fiscal year ending
December 31, 2020 to be announced in May 2020, adopt IFRS / New Segments.

Change in Reporting Segments● Reorganize its prior two businesssegments and four geographic
segments to perform disclosure
uniformly based on the four newsegments.

15 /16

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's
assumptions and beliefs in light of the information currently available to it. Bridgestone cautions you that a number of important risks and uncertainties
could cause actual results to differ materially from those discussed in the forward-looking statements, 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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