Consolidated Financial Statements
for the First Half of the Fiscal Year Ending December 31, 2016
August 9, 2016
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, theoriginal 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:
Naoki Hishinuma, Treasurer, General Manager
Telephone:+81-3-6836-3100
Scheduled date of quarterly securities report submission:
August 9, 2016
Scheduled date of dividend payment commencement:
September 1, 2016
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 2016 (January 1, 2016 - June 30, 2016)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales

Operating income

Yen in millions

Six months ended
June 30, 2016
1,646,567
Six months ended
June 30, 2015
1,855,494(Note) Comprehensive Income:%Yen in millions%

Yen in millions%

Yen in millions%(11.3)

218,241(8.2)

213,935(8.2)

123,353(14.7)

237,792
6.6
232,990
5.9
144,650Six months ended June 30, 2016(¥126,445) million [―%]
Six months ended June 30, 2015
¥160,793 million [109.7%]

1.7

6.0

Net income
per share
Six months ended
June 30, 2016
Six months ended
June 30, 2015

Profit attributable toowners of parent

Ordinary income

Diluted net income
per share
Yen

Yen

157.49157.25

184.69184.45(2) Consolidated Financial Position
Total assets

As of June. 30, 2016
As of December 31, 2015
(Reference) Total equity

Ratio of total equity tototal assets

Net assets

Yen in millions

Yen in millions%

3,305,576
3,795,846

2,088,903
2,282,011
As of June 30, 2016
As of December 31, 2015

61.4
58.2
¥2,030,086 million¥2,209,068 million

2. Dividends
2nd quarter
end

Annual Dividend
3rd quarter
end

Yen

Yen

Yen

Yen

Yen

－
－

60.00
70.00

－

70.00

130.00－70.00

140.00

1st quarterend
FY 2015
FY 2016

FY 2016(Projection)(Note) Changes from the latest forecasts released: No

Year -endTotal

3. Consolidated Projected Results for Fiscal 2016 (January 1, 2016 - December 31, 2016)(Percentage figures represent changes from the previous year)
Profit attributable to
Net income
Operating income
Ordinary income
owners of parent
per share

Net sales
Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

FY 2016
3,340,000 (11.9)
453,000(Note) Changes from the latest forecasts released: Yes(12.4)

434,000(14.4)

257,000(9.6)

328.13

* Notes(1) Changes in principal subsidiaries during the six months ended June 30, 2016 : 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, 2016
813,102,321 shares
December 31, 2015
813,102,321 shares
2) Number of shares of treasury stock at period end
June 30, 2016
December 31, 2015

29,864,414 shares
29,878,493 shares

3) Average outstanding number of shares (during the first half)First Half ended June 30, 2016
783,232,525 sharesFirst Half ended June 30, 2015
783,189,443 shares* Implementation status about the quarterly review
Although these financial statements are exempt from quarterly review procedures as required by the Financial
Instruments and Exchange Act, a part of quarterly review based on Financial Instruments and Exchange Act
were completed at the time of the disclosure of these financial statements.
* Statement regarding appropriate use of forward-looking statements and other notes
Projections of consolidated results for fiscal 2016 announced on February 17, 2016 are revised in thisdocument. The preceding descriptions of projections and plans are “forward-looking statements,” which involve
known and unknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual
performance and financial results to differ substantially from management’s projections and plans, and thestatements are not guarantees of future business performance. For details, refer to “1. Qualitative Information
for the First Half of Fiscal 2016, (3) Explanation of Projections of Consolidated Results”, on page 5.

Bridgestone Corporation (5108)

First half results of fiscal 2016

[ Index ]1. Qualitative Information for the First Half of Fiscal 2016

…P2

(1) Explanation of Consolidated Operating Results…P2(2) Explanation of Consolidated Financial Position…P4(3) Explanation of Projections of Consolidated Results

…P5
…P6

2. Other Information (Notes)(1) Application of special accounting treatments for consolidated quarterly financial statements…P6(2) Changes in accounting policy, changes in accounting estimates, and restatements

…P6
…P7

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet…P7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…P9

Consolidated Statement of Income…P9

Consolidated Statement of Comprehensive Income…P10(3) Notes to the Consolidated Financial Statements…P11(Notes regarding going concern assumption)…P11(Notes regarding significant changes in the amount of shareholders’ equity)…P11(Segment Information)

…P11

1

Bridgestone Corporation (5108)

First half results of fiscal 2016

1. Qualitative Information for the First Half of Fiscal 2016
The Bridgestone Corporation is referred to as the “Company,” and the Company and its subsidiaries are referred
to as the “Companies.”(1) Explanation of Consolidated Operating Results
1) Sales and earnings
FY 2016 1H(Six months ended
June 30, 2016)

FY 2015 1H(Six months ended
June 30, 2015)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,646.5

1,855.4(208.9)(11)

Operating income

218.2

237.7

(19.5)(8)

Ordinary income

213.9

232.9

(19.0)(8)

Profit attributable to owners of parent

123.3

144.6

(21.2)(15)

Net sales

In the first half of fiscal 2016 (January 1 to June 30, 2016), the operating environment surrounding Companies
was as follows: the Japanese yen had been strong and unclear situation continued due to the upsurge of
uncertainty of the global economy while the Japanese domestic economy continued gradual recovery. The
United States economy continued recovery supported by an increase in consumer spending. The outlook ofEuropean economy has increased uncertainty. In Asia, the Chinese economic growth remained slow. Overall,overseas economies were gradually recovering but still weak while the political and economic situation remained
unstable because of the issues of the UK leaving the EU, etc. In addition, tire demand for mining vehicles
decreased by lower commodity prices.
Under these operating conditions, the Companies continued their work to realize the ultimate goal of becoming“a truly global company” and achieving “Dan-Totsu in all aspects of our business.” Stepping up efforts on a global
scale, the Companies were working harder than ever to anticipate market trends and competitors’ movements, aswell as enhance technologies and promote innovation to increase the sales of highly competitive products andservices, and building and enhancing business models to extend beyond the mere sales of products. Moreover,
the Companies were continuing to implement a range of measures for management reforms. In the first half offiscal 2016, the Companies were promoting reform of governance system and implementing a variety ofmeasures to realize more effective utilization of management resources with appropriate expenses.
As a result of the appreciation of Japanese yen and the decrease of unit sales, net sales in the first half of fiscal
2016 were ¥1,646.5billion, a decrease of 11% from the first half of fiscal 2015; operating income was ¥218.2
billion, a decrease of 8%, ordinary income was ¥213.9 billion, a decrease of 8%; and profit attributable to ownersof parent was ¥123.3 billion, a decrease of 15%.

2

Bridgestone Corporation (5108)

First half results of fiscal 2016

2) Segment Information
FY 2016 1H

FY 2015 1H(Six months ended
June 30, 2016)(Six months ended
June 30, 2015)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,352.7

1,555.2(202.4)(13)

Operating income

198.6

217.0

(18.4)(9)

Diversified
Products

Net Sales

301.0

311.6

(10.5)(3)

Operating income

19.5

20.6

(1.1)

(5)

Consolidated
Results

Net Sales

1,646.5

1,855.4(208.9)

(11)

218.2

237.7

(19.5)(8)Tires

Net Sales

Operating income

In the tire segment, the Companies worked to maximize sales momentum by introducing appealing new
products globally, reinforcing fundamental competencies, and responding promptly to demand fluctuation in eachregion.
In Japan, the unit sales of tires for passenger cars and light trucks remained unchanged from the first half offiscal 2015 and the unit sales of tires for trucks and buses increased firmly compared to the first half of fiscal 2015.
In the Americas, the unit sales of tires for passenger cars and light trucks in North America increased steadily andthe unit sales of tires for trucks and buses decreased compared to the first half of fiscal 2015 due to a decrease in
the sales of original equipment tires. In Europe, the unit sales of tires for passenger cars and light trucks increased
strongly and the unit sales of tires for trucks and buses increased steadily compared to the first half of fiscal 2015.
In China and Asia Pacific, the unit sales of tires for passenger cars and light trucks increased substantially and theunit sales of tires for trucks and buses increased steadily compared to the first half of fiscal 2015. In the specialty
tire business, sales of large and ultra-large off-the-road radial tires for construction and mining vehicles were down
year on year due to a decrease of demand stemming from tire inventory adjustments at mines.
As a result of the tires sales above and the appreciation of Japanese yen, net sales in the tires segment during
the first half of fiscal 2016 were ¥1,352.7 billion, a decrease of 13% from the first half of fiscal 2015; operating
income was ¥198.6 billion, a decrease of 9%.
In the diversified products segment, net sales were ¥301.0 billion, a decrease of 3% from the first half of fiscal
2015 and operating income was ¥19.5 billion, a decrease of 5% from fiscal 2015 due to a decrease in the profit ofdomestic business.
(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.

3

Bridgestone Corporation (5108)

First half results of fiscal 2016

(2) Explanation of Consolidated Financial Position
Assets, liabilities, and net assets positions at the end of the first half of fiscal 2016 were as follows.

(Assets)
In assets, notes and accounts receivable, tangible fixed assets, and investments in securities decreased ¥98.7
billion, ¥179.6 billion, and ¥81.7 billion respectively. As a result, assets decreased ¥490.2 billion compared with theend of the previous fiscal year, to ¥3,305.5 billion.

(Liabilities)
In liabilities, while short-term borrowings increased ¥54.3 billion, accounts payable-other, long-term borrowings,
and net defined benefit liability decreased ¥56.0 billion, ¥119.9 billion, and ¥44.2 billion respectively. As a result,liabilities decreased ¥297.1 billion compared with the end of the previous fiscal year, to ¥1,216.6 billion.

(Net assets)
In net assets, while profit attributable to owners of parent was ¥123.3 billion, cash dividends paid were ¥54.8
billion, and net unrealized gain on available-for-sale securities and foreign currency translation adjustments
decreased ¥55.8 billion and ¥217.2 billion respectively. As a result, net assets decreased ¥193.1 billion comparedwith the end of the previous fiscal year, to ¥2,088.9 billion.
Due to a decrease of assets by ¥490.2 billion, the ratio of total equity to total assets increased 3.2% comparedwith the end of the previous fiscal year, to 61.4%

4

Bridgestone Corporation (5108)

First half results of fiscal 2016(3) Explanation of Projections of Consolidated Results
The Companies' operating environment will continue to require careful attention due to such factors asfluctuations in exchange rates and the prices of raw materials and feedstock, an ongoing lack of clarity in the
global economic situation and international political conditions that remain unstable.
Amid such a challenging business environment, the Companies project the following results through theimplementation of Mid-Term Management Plan initiatives.
.
FY 2016 projections (Fiscal Year ending December 31, 2016)
FY 2016 Projections(Revised)

FY 2016 Projections(Previous)

Increase(Decrease)(Ref.)FY 2015 Results

Yen in billions

Yen in billions

Yen in billions%

Yen in billions

3,340.03,750.0(410.0)(11)3,790.2

Operating income

453.0

520.0

(67.0)

(13)

517.2

Ordinary income

434.0

487.0

(53.0)

(11)

507.3

Profit attributable to owners of parent

257.0

309.0

(52.0)

(17)

284.2

Net sales

Exchange
Rate

Yen

Yen

%

Yen

yen/dollar

105

115

(9)

121

yen/euro

117

127

(8)

134

―

(Revision of the projections)
An actual result of operating income for the first half of the fiscal year ending December 31, 2016, was below the
projections previously announced on February 17, 2016. This decrease was the result of the appreciation ofJapanese yen and the decrease in unit tire sales from the original plan, in spite of favorable raw materials andfeedstock prices, and initiatives to reduce expenses. Additionally, the Company reviewed its consolidated financial
projections for the second half of the fiscal year ending December 31, 2016, which were not updated on May 11,
2016, and revised its full-year consolidated financial projections for the fiscal year ending December 31, 2016.

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.

5

Bridgestone Corporation (5108)

First half results of fiscal 2016

2. Other Information (Notes)(1) Application of special accounting treatments for consolidated quarterly financial statements(Calculation for income tax expense)
Income tax expense was calculated based upon an estimated effective tax rate for fiscal 2016.
(2) Changes in accounting policy, changes in accounting estimates, and restatements
Changes in accounting policy(Application of Accounting Standard for Business Combinations, etc)
The Company has applied the “Accounting Standard for Business Combinations” (Accounting Standards
Board of Japan (ASBJ) Statement No. 21, September 13, 2013), the “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, September 13, 2013), the “Accounting Standard forBusiness Divestitures” (ASBJ Statement No. 7, September 13, 2013) and other relevant standards from thefirst quarter of fiscal 2016. As a result, the difference arising from changes in ownership interests in its
subsidiary when the Companies continue to have control of the subsidiary is accounted for as capitalsurplus, and acquisition-related costs are treated as expenses in the consolidated fiscal year in which theyoccurred. Also, for any business combinations on or after the beginning of the first quarter of fiscal 2016, theadjustments of the purchase price allocation following the determination of the provisional accounting
treatment are reflected in the quarterly consolidated financial statements for the quarter in which thebusiness combination occurred. In addition, the presentation of net income has been changed, and thepresentation of minority interests has been changed to non-controlling interests. To reflect these changes inpresentation, the quarterly consolidated financial statements for the first half of the previous fiscal year andconsolidated financial statements for the previous fiscal year have been reclassified.
In accordance with the transitional treatment provided in Paragraph 58-2 (4) of the Accounting Standard forBusiness Combinations, Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial
Statements, and Paragraph 57-4 (4) of the Accounting Standard for Business Divestitures, these accounting
standards have been applied from the beginning of fiscal 2016 and thereafter.
There is no effect on the consolidated statement of income.

(Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements)
The Company has applied the “Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” (Practical Issues Task Force (“PITF”) No. 18, March 26,2015) from the first quarter of fiscal 2016. In accordance with the transitional treatment provided in PITF No.
18, the overseas subsidiary “BRIDGESTONE HOSE AMERICA INC.” amortizes goodwill for which it has
selected amortization treatment based on Financial Accounting Standards Board (“FASB”) AccountingStandards Codification, Topic 350, “Intangible-Goodwill and Other” using the remaining amortization periodof goodwill on the consolidated financial statements.
There is no effect on the consolidated statement of income.

6

Bridgestone Corporation (5108)

First half results of fiscal 2016

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
FY 2015(As of December 31, 2015)

FY 2016 1H(As of June 30,2016)

Cash and deposits

387,652

336,791

Notes and accounts receivable

488,832

390,069

Short-term investments

217,348

200,327

Merchandise and finished products

370,046

349,053Work in process

35,87732,214

Raw materials and supplies

149,815

124,545

Other

192,340

178,732

Allowance for doubtful accounts(33,357)(13,621)

1,808,557

1,598,113

Buildings and structures, net

537,244468,936

Machinery, equipment and vehicles, net

523,389

460,575

Other, net

443,257

394,722

1,503,891

1,324,233

68,38859,019Investments in securities

299,129

217,386

Other

121,760

110,953

Allowance for doubtful accounts(5,880)(4,130)Total investments and other assets

415,009324,209

Total Fixed Assets

1,987,289

1,707,462

Total Assets

3,795,846

3,305,576

AssetsCurrent Assets

Total Current Assets
Fixed Assets
Tangible fixed assets

Total tangible fixed assets
Intangible fixed assets
Investments and other assets

7

Bridgestone Corporation (5108)

First half results of fiscal 2016

(Yen in millions)
FY 2015

FY 2016 1H(As of December 31,2015)(As of June 30,2016)

Notes and accounts payable

181,973

163,443

Short-term borrowings

125,908180,218―

10,188

Liabilities
Current Liabilities

Commercial paper
Current portion of bonds

30,000―

Lease obligations

1,137

979

Income taxes payable

50,52330,522

Provision for recall

1,196

1,039

Accounts payable-other

164,491

108,437

Other

279,883

239,004

Total Current Liabilities

835,114733,833

Bonds

90,00090,000Long-term borrowings

188,275

68,298

6,256

5,462

Net defined benefit liability

259,521215,222

Other

134,668

103,855

Long-term Liabilities

Lease obligations

Total Long-term Liabilities
Total Liabilities

678,720482,839

1,513,835

1,216,672

126,354

126,354

Net Assets
Shareholders' Equity
Common stock
Capital surplus
Retained earnings
Treasury stock-at cost
Total Shareholders’ equity

123,025

123,017

2,014,497

2,083,024(56,212)(56,187)

2,207,664

2,276,209

192,324

136,518

Accumulated Other Comprehensive Income
Net unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative instruments

(776)

(86)

Foreign currency translation adjustments(55,406)(272,625)

Remeasurements of defined benefit plans(134,736)(109,930)

1,404(246,123)

Total accumulated other comprehensive
incomeStock Acquisition Rights

2,469

3,052

Non-controlling Interests

70,47355,765

Total Net Assets

2,282,011

2,088,903

Total Liabilities and Net Assets

3,795,846

3,305,576

8

Bridgestone Corporation (5108)

First half results of fiscal 2016

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
First Half

(Yen in millions)
FY 2015 1H

FY 2016 1H(Six months ended(Six months ended

June 30, 2015)

June 30, 2016)

Net Sales

1,855,494

1,646,567

Cost of Sales

1,130,576

967,233

Gross Profit

724,917679,334

Goods freightage expenses

78,86872,795Advertising and promotion expenses

65,57861,250

Salaries, allowances and bonuses

133,162

125,256

Retirement benefit expenses

13,252

9,447

Depreciation

15,253

15,408

Research and development expenses

46,515

48,101

Other

134,494

128,831

Total selling, general andadministrative expenses

487,124

461,092

Operating Income

237,792

218,241

Interest income

2,881

2,139

Dividend income

6,120

5,967

―

3,356

Other

9,166

6,559

Total non-operating income

18,16818,023

Interest expense

6,216

5,282

Foreign currency exchange loss

4,306

7,560

Other

12,448

9,487

Total non-operating expenses

22,971

22,330Ordinary Income

232,990

213,935

Gain on sales of investment securities

10,162―

Total extraordinary income

10,162―

Loss related to Reorganization of R&D
and Manufacturing Base

―

6,861

Total extraordinary ｌoss

―

6,861

Income before Income Taxes andNon-controlling Interests

243,153

207,074

Income taxes

92,75578,792

Income before Non-controlling interests

150,398

128,281

Profit attributable to non-controllinginterests

5,748

4,928

Profit attributable to owners of parent

144,650

123,353

Selling, General and Administrative Expenses

Non-operating Income

Gain on sales of investment securities

Non-operating expenses

Extraordinary Income

Extraordinary Loss

9

Bridgestone Corporation (5108)

Consolidated Statement of Comprehensive Income
First HalfFirst half results of fiscal 2016

(Yen in millions)
FY 2015 1H(Six months ended

FY 2016 1H(Six months ended

June 30, 2015)

June 30, 2016)

Income before Non-controlling Interests

150,398

128,281

25,880(55,806)

765

1,013

Foreign currency translation adjustments(19,845)(222,932)

Remeasurements of defined benefit plans

5,007

24,948

Share of other comprehensive income inaffiliates(1,411)(1,949)Total other comprehensive income

10,395(254,726)

160,793(126,445)

156,045(124,174)

4,747(2,270)

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

Comprehensive Income
Comprehensive income attribute to:
Owners of parent
Non-controlling Interests

10Bridgestone Corporation (5108)

First half results of fiscal 2016(3) Notes to the Consolidated Financial Statements(Notes regarding going concern assumption)
Not applicable(Notes regarding significant changes in the amount of shareholders’ equity)
Not applicable(Segment Information)
Information about Sales and Income (Loss) by reportable segment
FY 2015 First Half (Six months ended June 30, 2015)
Diversified
Products

Tires
Net sales:
External customers
Inter-segment
Total
Segment income(Operating income)(Yen in millions)

Adjustments(Note)

Total

1,552,615
2,652
1,555,267

302,8788,782
311,660

1,855,494
11,434
1,866,928

217,090

20,699237,789

Consolidated―(11,434)(11,434)

1,855,494－
1,855,494

3

237,792(Note) Adjustments of segment income refer to elimination of intersegment transactions.

FY 2016 First Half (Six months ended June 30, 2016)(Yen in millions)

Diversified
Products

Tires

Adjustments

Total

Consolidated(Note)Net sales:
External customers
Inter-segment
Total
Segment income(Operating income)―

1,349,476

297,090

1,646,567

3,299

3,996

7,296

(7,296)―

1,352,775

301,087

1,653,863(7,296)

1,646,567

198,627

19,599218,227

14

218,241(Note) Adjustments of segment income refer to elimination of intersegment transactions.

11

1,646,567