Consolidated Financial Statements for the Fiscal Year Ended December 31, 2016
February 17, 2017
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.
Stock exchange listings: Tokyo, Nagoya, Fukuoka
Bridgestone Corporation
Code number:5108
URL:http://www.bridgestone.com/
Representative: Masaaki Tsuya, 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 annual shareholders’ meeting:March 24, 2017
Scheduled date of securities report submission:
March 24, 2017
Scheduled date of dividend payment commencement:
March 27, 2017
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 2016 (January 1, 2016 - December 31, 2016)(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 2016
3,337,017 (12.0)
449,548 (13.1)
Fiscal 2015
3,790,251
3.2
517,248
8.2(Reference) Comprehensive Income: Fiscal 2016 ¥191,112 million [(23.8%)]
Net income
per share

Diluted net income
per share
Yen%

Yen in millions%

432,534 (14.7)
265,550(6.6)
507,303
9.5
284,294(5.4)
Fiscal 2015 ¥250,870 million [(27.0%)]

Net return on Total
equityOrdinary income/ Total assets

%

%

%

11.8
11.5
13.3
13.1
Fiscal 2015 ¥3,639 million

13.5
13.6

Yen

Fiscal 2016
339.04338.52
Fiscal 2015
362.99362.52(Reference) Equity in earnings of affiliates: Fiscal 2016 ¥231 million

Operating income
margin(2) Consolidated Financial Position
Total assets

Ratio of total equity tototal assets

Net assets

Yen in millions

Fiscal 2016
3,720,236
Fiscal 2015
3,795,846(Reference) Total equity: Fiscal 2016 ¥2,283,417 million

Total equity per share%

Yen

2,345,457
61.4
2,282,011
58.2
Fiscal 2015 ¥2,209,068 million

2,915.28
2,820.48

Yen in millions(3) Consolidated Cash FlowsNet cash provided
by operating activities

Net cash provided by(used in) financing
activities

Net cash used ininvesting activities

Cash and cash
equivalents at end ofyear

Yen in millions

Yen in millions

Yen in millions

Yen in millions

444,535
553,938(178,276)(233,380)(216,404)(238,805)

471,741
426,727

Fiscal 2016
Fiscal 2015

2. Dividends
1stquarterend

Dividend per share
2nd
3rd
Year
quarterquarter
-end
end
end

Yen

Fiscal 2015
Fiscal 2016
Fiscal 2017
(Projection)

Yen

Yen

Total

Dividends
Pay-out
ratio(Consolidated)

Total
dividends

Ratio ofdividends
to total equity(Consolidated)

Yen

Yen

Yen in millions

%

%

－
－

60.00
70.00

－
－

70.00
70.00

130.00140.00101,819
109,655

35.8
41.3

4.8
4.9

－

70.00

－

70.00

140.0039.2

3. Consolidated Projected Results for Fiscal 2017 (January 1, 2017 - December 31, 2017)(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 2017

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

1,710,000
3,630,000

3.9
8.8

211,000
452,000(3.3)
0.5

204,000
433,000(4.6)
0.1

130,000
280,000

5.4
5.4

165.97357.48

* Notes(1) Changes in principal subsidiaries during fiscal 2016 : 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. : Yes
2) Changes in accounting policy other than 1): No3) Changes in accounting estimates: No4) Restatements: No(3) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
December 31, 2016
813,102,321 shares
December 31, 2015
813,102,321 shares
2) Number of shares of treasury stock at period end
December 31, 2016
December 31, 2015

29,844,837 shares
29,878,493 shares

3) Average outstanding number of sharesFiscal 2016 year ended December 31, 2016
Fiscal 2015 year ended December 31, 2015

783,240,607 shares
783,204,319 shares(Reference) Summary of Non-consolidated Results(January 1, 2016 - December 31, 2016)(1) Non-consolidated Operating Results
Net sales
Fiscal 2016
Fiscal 2015

Operating income

Ordinary income

Net income

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

797,866
912,670(12.6)(7.9)

137,787
189,147(27.2)(3.1)

185,587
226,901(18.2)(0.4)

140,784
171,020(17.7)
52.0

Net income
per share
Fiscal 2016
Fiscal 2015

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

Diluted net income
per share
Yen

Yen

179.74218.36179.47218.07(2) Non-consolidated Financial Position
Total assets

Net assets

Yen in millions

Fiscal 2016
1,969,425
Fiscal 2015
2,011,618(Reference) Total equity: Fiscal 2016 ¥1,497,177 million

Yen in millions

Ratio of total equity tototal assets

Total equity per share%

Yen

1,500,153
76.0
1,488,494
73.9
Fiscal 2015 ¥1,486,024 million

1,911.47
1,897.31* Status of implementation of audit proceduresThis kessan tanshin document is outside the scope of audit procedures based on the Financial Instruments and Exchange Act.
As of the time of its disclosure, audit procedures with respect to the financial statements were in the process of being
implemented.
* 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 and unknown risks
and uncertainties. These variables could cause the Bridgestone Group’s actual performance and results to differ substantiallyfrom 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 2017.”

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

[ 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 2016 and 2017…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…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, etc.)…P22(Changes in presentation)…P23(Consolidated Balance Sheet)…P24(Consolidated Statement of Income)…P25(Consolidated Statement of Changes in Net Assets)…P27(Consolidated Statement of Cash Flows)…P29(Segment Information)…P30(Per share information)…P32(Significant subsequent events)…P33

6. Other…P34(1) Senior Management Changes

…P34

1

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

1. Operating Results
The Bridgestone Corporation is referred to as the “Company”, and the Company and its subsidiaries are referred toas the “Companies”.
(1) Analysis of Operating Results[Operating results for fiscal 2016]
1) Sales and earnings

Net sales

Increase(Decrease)

Fiscal 2015

Fiscal 2016
Yen in billions

Yen in billions

Yen in billions%

3,337.0

3,790.2(453.2)(12)

Operating income

449.5

517.2

(67.7)(13)

Ordinary income

432.5

507.3

(74.7)(15)

Profit attributable to owners of parent

265.5

284.2

(18.7)(7)

During the fiscal year of 2016 (January 1, 2016 to December 31, 2016), the operating environment surrounding
the 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 such as the United Kingdom leaving the European Union. 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 “atruly global company” and achieving “Dan-Totsu in each and every aspect of our business.”Stepping up efforts on a
global scale, we were working harder than ever to advance brand strategy through Worldwide Olympic Partner andselect Paralympic partnership activities for the Olympic and Paralympic Games Tokyo 2020, as well as promote
innovation to increase the sales of highly global competitive products and services, and building and enhancing
solutions business to extend beyond solely sales of products. Moreover, the Companies were continuing to
implement a range of measures for management reforms. In fiscal 2016, the Companies were promoting reform ofgovernance system and implementing a variety of measures to realize more effective utilization of management
resources with appropriate expenses.
As a result of the appreciation of the Japanese yen, net sales in fiscal 2016 were ¥3,337.0 billion, a decrease of
12% from fiscal 2015; operating income was ¥449.5 billion, a decrease of 13%, ordinary income was ¥432.5 billion,a decrease of 15%; and profit attributable to owners of parent was ¥265.5 billion, a decrease of 7%.

2

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

2) Segment Information
Fiscal 2016

Tires

Net Sales

Increase(Decrease)

Fiscal 2015

Yen in billions

Yen in billions

Yen in billions%

2,765.7

3,174.4(408.6)(13)

Operating income

414.7

472.7

(58.0)(12)

Diversified
Products

Net Sales

585.7

635.0

(49.3)(8)

Operating income

34.8

44.5

(9.6)

(22)

Consolidated
Results

Net Sales

3,337.0

3,790.2(453.2)

(12)

449.5

517.2

(67.7)(13)

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 each region.
In Japan, the unit sales of tires for passenger cars and light trucks, and the unit sales of tires for trucks and buses
increased firmly compared to fiscal 2015. In the Americas, the unit sales of tires for passenger cars and light trucks
in North America increased firmly, but the unit sales of tires for trucks and buses decreased, compared to 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 tofiscal 2015. In China and Asia Pacific, 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 fiscal 2015. In the specialty tirebusiness, sales of large and ultra-large off-the-road radial tires for construction and mining vehicles remained
unchanged from fiscal 2015.
As a result of the tires sales above and the appreciation of the Japanese yen, net sales in the tires segment
during fiscal 2016 were ¥2,765.7 billion, a decrease of 13% from fiscal 2015; operating income was ¥414.7 billion, adecrease of 12%.
In the diversified products segment, net sales were ¥585.7 billion, a decrease of 8% from fiscal 2015 andoperating income was ¥34.8 billion, a decrease of 22% from fiscal 2015 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 2016

[Projections for fiscal 2017]
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 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 Companies project the following results through theimplementation of Mid-Term Management Plan initiatives.
Fiscal 2017
projections

Yen in billions

Yen in billions%

1,710.0

1,646.5

63.4

4

Operating income

211.0

218.2

(7.2)

(3)

Ordinary income

204.0

213.9

(9.9)

(5)

Profit attributable toowners of parent

130.0

123.3

6.6

5

3,630.0

3,337.0292.9

9Operating income

452.0

449.5

2.4

1

Ordinary income

433.0

432.5

0.4

―

Profit attributable toowners of parent

280.0

265.5

14.4

5

Yen

Yen

yen/dollar

110

111

yen/euro

114

124

yen/dollar

110

109

1

yen/euro

114

120

(5)

Net sales
Full-year

Increase(Decrease)

Yen in billions
Net salesFirst half

Fiscal 2016

First half
Exchange
rate

(1)
－

(8)

Full-year

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 2016

(2) Analysis of Financial Position
1) Cash flow
Fiscal 2016

Increase(Decrease)

Fiscal 2015

Yen in billions

Yen in billions

Yen in billions

Net cash provided by operating activities

444.5

553.9

(109.4)

Net cash used in investing activities(178.2)(233.3)55.1

Net cash used in financing activities(216.4)(238.8)22.4

Effect of exchange rate changes
on cash and cash equivalents(4.8)(35.3)

30.4

Net increase (decrease)in cash and cash equivalents

45.0

46.4

(1.3)

Cash and cash equivalents
at beginning of year

426.7

390.1

36.5

―

(9.8)

9.8

471.7

426.7

45.0

Decrease in cash and cash equivalents
resulting from exclusion of subsidiaries
from consolidation
Cash and cash equivalents at end of year

The Companies’ cash and cash equivalents increased ¥45.0 billion during fiscal 2016, to ¥471.7 billion, comparedwith an increase of ¥36.5 billion during the previous year.
(Cash flows from operating activities)
Net cash provided by operating activities decreased ¥109.4 billion compared with the previous year, to ¥444.5
billion. The principal contributors in that cash provided included income before income taxes and non-controllinginterests of ¥421.5 billion, compared with ¥478.1 billion during the previous year, depreciation and amortization of¥188.0 billion, compared with ¥202.3 billion during the previous year. These contributors offset income taxes paidof ¥128.7 billion, compared with ¥126.8 billion during the previous year.
(Cash flows from investing activities)
Net cash used in investing activities decreased ¥55.1 billion compared with the previous year, to ¥178.2 billion.
The principal contributor in that cash used included payments of ¥186.8 billion for purchase of tangible fixed assets,compared with payments of ¥255.2 billion during the previous year.
(Cash flows from financing activities)
Net cash used in financing activities decreased ¥22.4 billion compared with the previous year, to ¥216.4 billion.
The principal contributors in that cash used included repayments for long-term borrowings of ¥68.3 billion,
compared with ¥97.4 billion during the previous year, payments for redemption of bonds of ¥30.0 billion (notapplicable during the previous year), and cash dividends paid of ¥109.3 billion, compared with ¥93.9 billion during
the previous year.

5Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20162) Trends in cash flow indicators
Fiscal 2014

Fiscal 2015

Fiscal 2016

Ratio of total equity to total assets (%)

52.4

58.2

61.4

Total equity ratio on market value basis (%)

83.0

86.1

88.7

Interest-bearing debt / cash flow ratio(years)

1.4

0.8

0.8

Interest coverage ratio(times)

29.0

44.4

44.2

(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 statements ofcash 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 2016 and 2017
Regarding the interests of shareholders as an important management priority, the Companies follow 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 Companies conducts shareholder returns while
maintaining an appropriate financial position and securing the internal revenues necessary for future growthinvestments. In determining dividend payments, the Companies comprehensively evaluates factors including
business results, financial condition for the relevant fiscal period, medium-term earnings forecasts, investment plans,and cash flows. Based on these considerations, the Companies strive to live up to expectations of shareholders by
issuing stable dividend payments targeting a consolidated payout ratio of 20%–40%.
The Companies 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 Companies 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 2016, the Companies plan to pay a cash dividend of ¥140 per share, comprising a year-end cash
dividend of ¥70 per share and an interim cash dividend of ¥70 per share.
For the fiscal 2017, the Companies plan to pay a cash dividend of ¥140 per share, comprising a year-end cash
dividend of ¥70 per share and an interim cash dividend of ¥70 per share.

6

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart
AS OF DECEMBER 31, 2016
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 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 ITALIA SALES S.R.L.
BRIDGESTONE AUSTRALIA LTD.
BRIDGESTONE C.I.S. LLC
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.
*Merge of subsidiaries in Europe
As of January 1, 2017, BRIDGESTONE ITALIA SALES S.R.L. was merged by BRIDGESTONE EUROPE NV/SA.

7

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

3. Management Policies(1) Basic Management Policies
The Companies will pursue the ultimate goals of becoming “a truly global company” and achieving “Dan-Totsu ineach and every aspect of our business” based on Mission and Foundation Framework that consists of The
Bridgestone Essence which is composed of “Mission” —“Serving Society with Superior Quality”—, and four“Foundations” for fulfilling the mission — “Seijitsu-Kyocho [Integrity and Teamwork]”, “Shinshu-Dokuso [Creative
Pioneering]”, “Genbutsu-Genba [Decision-Making Based on Verified, On-Site Observation]”, and “Jukuryo-Danko[Decisive Action after Thorough Planning]” — as well as “Safety, Quality & Environmental Mission Statement”.
Further, as a responsible global company, the Companies respect the social culture and values, comply with laws
and statutory regulations, protect the global environment, and work on social contribution activities in the countries
in which we conduct business activities contribute to society.
(2) Management Strategies and Tasks
The Companies’ operating environment is undergoing substantial change in a wide range of areas, includinginternational relations, political and economic climate, the environmental problems, technological innovation. Social
structures and consumer awareness are also changing significantly.
In this setting, the Companies remain firmly committed to the basic stance of “Lean & Strategic” and “Group Global
Optimization.” In other words, the Companies maintain an optimum balance between short-term management andmid- and long-term management measures, with a focus on “Lean” in the short-term and “Strategic” in the mid- andlong-term. At the same time, the Companies continue to implement management reforms, giving the highest priority
to optimization on a group and global basis. In this way, the Companies strive to achieve the goals outlined above.
In accordance with this fundamental approach, the Companies make full use of “the Strategic Business Unit (SBU)
based organization” and “the Mid-Term Management Plan (MTP)” as tools, and continue to focus on three priority
issues of “cultivating global corporate culture”, “developing human resources capable of global management” and“upgrading the global management structure”, in order to improve the quality and the speed of management reforms.
In regard to the first item, “cultivating global corporate culture,” the Companies will ensure overall consistency on agroup and global basis; promote the brand strategies as a part of a fully integrated marketing strategy. Furthermore,as an Official Worldwide Olympic Partner and Tokyo 2020 Paralympic Gold Partner, we enhance the global brandutilizing the experience in the Olympic Games Rio 2016. In an operating environment undergoing significant change,
the Companies will accelerate innovation with ICT utilization and Innovation through whole company-wide value
chain based on an anticipation of market trends. The Companies will reinforce our corporate structure to acceleratetechnology and business model innovation by taking actions such as the upgrading of the R&D structure on a global
basis, the Companies expand our line-up of highly competitive products and services, and construct and enhancebusiness models that will extend beyond the mere sales of products. The Companies are also pursuing continuous
improvement in each and every area of business. In these ways, the Companies will create customer value andensure further development of our competitive advantage and differentiation.
In regard to the second item, “developing human resources capable of global management,” the Companies will
promote programs such as the Global Leadership Capabilities. The Companies will promote further development ofenvironment and structure such as conducting global meetings including the Global Executive Committee (Global
EXCO) which is the highest body of global business execution in English to enable diverse talents to fulfill theirpotential.

8

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

In regard to the third item, “upgrading the global management structure,” the Companies will promote“enhancement of governance systems” and “expansion of the diversified product businesses.”In the “enhancement of governance systems”, the Companies shifted to the "Company with Nominating
Committee, etc." model of corporate governance from March 2016, in order to serve to further strengthening ourinternal control and accelerating business execution. The Companies will continue to upgrade the global
management structure by clarifying lines of authority and responsibility and enhancing delegation, SBU restructuringetc., aiming for both more effective strategic planning and efficient decision making.
In the “expansion of the diversified product businesses,” the Companies will promote the globalization of major
businesses such as seat pad, anti-vibration rubber, roofing business. to guide the diversified product business to its
next growth spurt. In addition, the Companies will strengthen the expansion of its solution business including
services, rather than simply combining existing product-based businesses.
In addition, the Companies will step up efforts to build systems to support the fulfillment of responsibilities as acorporate group toward all of our stakeholders. The Companies will review our policy as needed for the developmentof internal control systems that ensure appropriate operations and steadily develop systems in accordance with thepolicy. In regard to CSR, the Companies will consider materiality from a variety of perspectives and recognize“Mobility”, “People” and “Environment” to be priority areas, while the Companies contribute to resolving social issues
through innovation and cutting-edge technologies, create common value for customers and society, and build trust
and respect by contributing to community development. The Companies remain committed to further enhancing
compliance systems, based the reflection of a plea agreement with the U.S. Department of Justice in relation tocartel activities with respect to the sale of anti-vibration rubber products for vehicles in February 2014.

4. Basic Policy on the Selection of Accounting Standard
The Companies prepare and disclose our Consolidated Financial Statements in accordance with “Japanese
Generally Accepted Accounting Principles”. With respect to International Financial Reporting Standards (IFRS), theCompanies have the plan for voluntary adoption of IFRS in the future. Timing of the adoption is under consideration.

9

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

5. Consolidated Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
Previous Year(As of December 31, 2015)

Current Year(As of December 31, 2016)

Cash and deposits

387,652

483,006

Notes and accounts receivable

488,832

455,218

Short-term investments

217,348

167,697

Merchandise and finished products

370,046

377,412Work in process

35,87735,469Raw materials and supplies

149,815140,824Deferred tax assets

79,55069,514

Other

112,790

107,041

Allowance for doubtful accounts(33,357)(16,179)

AssetsCurrent Assets

Total Current Assets(Note2)

1,808,557(Note2)

1,820,004

Fixed Assets
Tangible fixed assets
Buildings and structures, net

537,244528,799

Machinery, equipment and vehicles, net

523,389

507,844

Land

172,458

168,437

Construction in progress

179,597

160,752

Other, net

91,20088,835

Total Tangible Fixed Assets(Note1)Intangible fixed assets

1,503,891(Note1)

68,3881,454,669
73,116

Investments and other assets
Investments in securities(Note3)299,129(Note3)

263,549

Long-term loans receivable

5,638

5,071

Deferred tax assets

49,11637,006

―

2,039

Other

67,00466,509Allowance for doubtful accounts(5,880)(1,730)Total Investments and Other Assets

415,009372,446

Net defined benefit assets

Total Fixed Assets(Note2)

Total Assets

1,987,289
3,795,846

10(Note2)

1,900,231
3,720,236

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Yen in millions)
Previous Year

Current Year(As of December 31, 2015)(As of December 31, 2016)

Notes and accounts payable

181,973

195,603

Short-term borrowings

125,908

174,678

Current portion of bonds

30,000―

Lease obligations

1,137

1,017

Income taxes payable

50,52322,722

Deferred tax liabilities

1,803

2,144

Provision for sales returns

3,062

3,471

Liabilities
Current Liabilities

Provision for recall

1,196

916

Accounts payable - other

164,491

168,714

Accrued expenses

226,294

220,822

Other

48,72360,351

Total Current Liabilities

835,114850,441

Bonds

90,00090,000Long-term borrowings

188,275

70,458Long-term Liabilities

Lease obligations

6,256

6,616

Deferred tax liabilities

48,864

49,955Warranty reserve

29,371

27,620

Provision for environmental remediation

2,165

2,018

―

13,951

259,521

214,443

Provision for reorganization of R&D
and manufacturing base
Net defined benefit liability
Other54,26649,275

Total Long-term Liabilities

678,720524,338

1,513,835

1,374,779

Common stock

126,354

126,354

Capital surplus

123,025

123,005

2,014,497

2,170,395

Total Liabilities
Net Assets
Shareholders' Equity

Retained earnings
Treasury stock - at cost

(56,212)(56,151)

2,207,664

2,363,604

192,324

174,197(776)(1,720)Foreign currency translation adjustments(55,406)(114,910)

Remeasurements of defined benefit plans(134,736)(137,754)

Total Accumulated Other Comprehensive
Income1,404(80,187)

Stock Acquisition Rights

2,469

2,975

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

Non-controlling Interests

70,47359,063

Total Net Assets

2,282,011

2,345,457

Total Liabilities and Net Assets

3,795,846

3,720,236

11

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Yen in millions)
Previous Year
(Year ended December 31, 2015)
Net Sales

Current Year
(Year ended December 31, 2016)

3,790,251

3,337,017

Cost of Sales

2,293,937

1,972,475

Gross Profit

1,496,313

1,364,541

Goods freightage expenses

160,270

147,502

Advertising and promotion expenses

128,341

121,228

Salaries, allowances and bonuses

265,869

246,347

Retirement benefit expenses

24,385

19,672

Depreciation

32,147

31,374

Selling, General and Administrative Expenses

Research and development expenses(Note1)

94,977(Note1)

95,403

Other273,072

253,462

Total Selling, General and
Administrative Expenses

979,065

914,992

Operating Income

517,248449,548

Interest income

5,916

5,030

Dividend income

8,332

8,135

Non-operating Income

Penalty income

4,783

―

Other

17,68913,375

Total Non-operating Income

36,721

26,541

Interest expense

12,118

10,169Foreign currency exchange loss

10,437

7,802

Other

24,11025,585

Total Non-operating Expenses

46,66643,556

Ordinary Income

507,303432,534

5,277―

Gain on sales of investment securities

15,48011,117

Total Extraordinary Income

20,758

11,117

Non-operating Expenses

Extraordinary Income
Gain on sales of tangible assets(Note2)Extraordinary Loss―

Impairment loss
Loss on disposals of tangible assets

6,397

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

Loss on deconsolidation of subsidiaries(Note5)(Note3)

4,414―(Note4)

17,64943,505―

Total Extraordinary Loss

49,90322,063

Income before Income Taxes andNon-controlling Interests

478,159

421,588

Income Taxes - current

155,360

113,488

Income Taxes - deferred

27,12332,661

Total income taxes

182,484

146,150

Income before Non-Controlling interests

295,675

275,438

Profit Attributable to Non-controlling Interests

11,3809,887

Profit Attributable to Owners of Parent

284,294

265,55012Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Yen in millions)
Previous Year
(Year ended December 31, 2015)

Current Year
(Year ended December 31, 2016)

295,675

275,438

24,138(18,109)

1,268(1,069)Foreign currency translation adjustments(97,829)(59,702)

Remeasurements of defined benefit plans

30,370(3,375)

Share of other comprehensive income inaffiliates(2,752)(2,068)

Total Other Comprehensive Income(44,804)(84,325)

250,870

191,112245,922

183,959

4,948

7,153

Income before Non-controlling Interests
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

13

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(3) Consolidated Statement of Changes in Net Assets
Previous Year (Year ended December 31, 2015)(Yen in millions)Shareholders’ equity

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

Capital surplus

126,354

123,008

Retainedearnings

Treasurystock-at cost

1,842,914(56,367)(18,729)
126,354

123,008

1,824,184

Total
2,035,908(18,729)(56,367)

2,017,179(Changes in the year)
Cash dividends
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock(93,981)(93,981)284,294284,294

16

(12)

(12)

167

184

Net changes in the year
Total changes in the year
Ending balance－

16

190,312155

190,484

126,354

123,025

2,014,497(56,212)2,207,664

Accumulated other comprehensive income
Net unrealized
gain (loss)
on availablefor-salesecurities
168,172

Stockacquisitionrights

Noncontrollinginterests(165,314)

1,945

69,026

39,108(165,314)

1,945

69,026

1,412(94,515)

30,578524

1,446

24,151

1,412(94,515)

30,578524

1,446

192,324(776)(55,406)(134,736)

2,469

70,473

Deferredgain (loss)
on derivative
instruments

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans(2,189)39,108168,172(2,189)Net changes in the year

24,151

Total changes in the year
Ending balance

Beginning balance
Cumulative effects of changes
in accounting policies
Restated balance(Changes in the year)
Cash dividends
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock

14

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

Current Year (Year ended December 31, 2016)(Yen in millions)Shareholders’ equity

Beginning balanceCommon stock

Capital surplus

126,354

123,025

Retainedearnings

Treasurystock-at cost

2,014,497(56,212)

Total
2,207,664(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

123,0052,170,395(56,151)

2,363,604

Accumulated other comprehensive income
Net unrealized
gain (loss)
on availablefor-salesecurities
192,324

Stockacquisitionrights

Noncontrollinginterests(134,736)

2,469

70,473(59,503)(3,017)506(11,409)(944)(59,503)(3,017)506(11,409)(1,720)(114,910)(137,754)

2,975

59,063

Deferredgain (loss)
on derivative
instruments

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

(776)

(55,406)(18,126)(944)

Total changes in the year

(18,126)

Ending balance

174,197

Beginning balance(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

15

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(4) Consolidated Statement of Cash Flows(Yen in millions)
Previous Year

Current Year

(Year ended December 31, 2015)(Year ended December 31, 2016)

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

478,159

421,588

Depreciation and amortization

202,333

188,062

1,388(16,340)(15,204)(45,185)

Interest and dividend income(14,249)(13,166)

Interest expense

12,118

10,169Foreign currency exchange loss (gain)

6,442(6,178)

Share of (profit) loss of entities accounted
for using equity method

(396)

2,726

Penalty income(4,783)―Gain on sales of tangible fixed assets(5,277)―

Loss (gain) on sales of investment insecurities(15,480)(11,117)

Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in net defined benefit
liability

―

4,414

Loss on disposals of tangible assets

6,397

―

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

17,649Loss on deconsolidation of subsidiaries

43,505―Decrease (increase) in notes and accounts
receivable(14,408)

9,600

(536)

(16,047)

Increase (decrease) in notes and accounts
payable(19,522)

22,699Other

20,6881,276

Subtotal

681,175

570,151

Interest and dividends received

14,046

13,173

Interest paid

Impairment loss

Decrease (increase) in inventories(12,483)(10,051)

Penalty received

4,783

―

Payment related to recall(6,697)―

Income taxes paid

(126,885)(128,737)

Net Cash Provided by Operating Activities

553,938

444,535(255,229)(186,814)

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

7,598

4,792

Payments for purchase of intangible assets(3,988)(5,900)

Proceeds from sales of investments insecurities

17,776

14,433

Payments of long-term loans receivable(1,276)(3,401)

Proceeds from collection of long-term loans
receivable

1,212

2,063

Other
Net Cash Used in Investing Activities

16

526

(3,449)(233,380)(178,276)

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Yen in millions)
Previous Year
(Year ended December 31, 2015)

Current Year
(Year ended December 31, 2016)

Cash Flows from Financing Activities
Net increase (decrease) in short-termborrowings and commercial paper(61,097)(8,174)

Proceeds from long-term borrowings

24,556

19,463

Repayments of long-term borrowings(97,400)(68,395)―(30,000)

Cash dividends paid

(93,928)(109,386)

Cash dividends paid to non-controlling interests(5,646)(19,267)

Payments for redemption of bonds

Other
Net Cash Used in Financing Activities
Effect of Exchange Rate Changes on Cash andCash Equivalents
Net Increase (Decrease) in Cash and Cash
Equivalents
Cash and Cash Equivalents at Beginning of Year
Decrease in Cash and Cash Equivalents
Resulting from Exclusion of Subsidiaries from
Consolidation
Cash and Cash Equivalents at End of Year

(Note1)

17(5,288)(643)(238,805)(216,404)(35,339)(4,840)46,41345,014

390,181426,727(9,867)―426,727(Note1)

471,741Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016(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: 294 companies
Names of principal companies:
Refer to “2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart”
Changes in scope of consolidation:
Additions: 4 companies (Mainly, increased by establishment)
Deletions: 10 companies (Mainly, decreased by merger)
2) There are no non-consolidated subsidiaries.
Venezuelan subsidiaries (BRIDGESTONE FIRESTONE VENEZOLANA, C.A. and its subsidiary), whichwere non-consolidated subsidiaries in the previous fiscal year, were sold during the current fiscal year.
2. Scope of application of equity-method accounting
1) Number of equity-method affiliates: 148 companies
Name of principal company
BRISA BRIDGESTONE SABANCI LASTIK SANAYI VE TICARET A.S.
Changes in the scope of equity-method accounting
Additions: 5 companies (Increased by investment)
Deletions: 2 companies (Mainly, decreased by disposal)
2) There are no non-consolidated subsidiaries or affiliates to which equity-method accounting is not applied.
Venezuelan subsidiaries (BRIDGESTONE FIRESTONE VENEZOLANA, C.A. and its subsidiary), whichwere non-consolidated subsidiaries that were not accounted for by the equity-method in the previous
fiscal year, were sold during the current fiscal year.
3. Fiscal year of consolidated subsidiaries
From the current fiscal year, BRIDGESTONE INDIA PRIVATE Ltd.’s financial year end was changed
from December 31 to March 31. The financial statements prepared as a result of the provisional financial
closing process as of the consolidated financial closing date are used as the basis for consolidation.
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 are recorded in net assets, and the moving-averagemethod 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.

18

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20163) 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 thelower of cost, which is determined principally by the last-in, first-out method.
4) 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 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 aconcern of nonpayment, an amount based on the evaluation of potential loss in the receivables
outstanding is recorded.
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) Provision for recall
In order to reserve for outlays related to check and replacement of object tires, the estimated amount of
future obligations is recorded.
d) 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 the Companies’ past experience of the Companies and subsidiaries (collectively,
the “Companies”).
e) 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.
f) 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, theCompanies, domestic subsidiaries, and certain overseas subsidiaries attribute the benefit under the
benefit formula basis. In addition, at certain overseas subsidiaries, an estimated total amount ofexpenses for postretirement benefits except for pensions is allotted based on the number of years ofservice provided by the employees.

19Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016b) Method of recognizing unrecognized actuarial gain/loss and past service cost
Past service cost is treated as an expense 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 occur (10 years for the Companies and domestic subsidiaries, 3 to 12 years for overseas
subsidiaries).
Actuarial gain/loss at the Companies and our 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 our overseas subsidiaries, unrecognized actuarial gain/loss at the beginning of the fiscal
year that exceed 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
average remaining years of service of the employees.
7) Accounting policies for the conversion of foreign currency-denominated assets and liabilities into yen
Monetary receivables and payables denominated in foreign currencies are translated into Japanese yenat 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 Companies’ overseas subsidiaries are translated into Japanese yen at thecurrent exchange rate at the consolidated balance sheet date. Revenue and expense accounts of theCompanies’ 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 andnon-controlling interests 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
and foreign 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, andforeign exchange swaps are made to match the principal amount and term of the hedged foreign
currency-denominated 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 Company’s policy not
to use any derivative transactions for speculative purposes.

20Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016d) 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
fluctuations in 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.
11) Other significant items related to the preparation of consolidated financial statements
Accounting treatment of consumption tax
Consumption tax and local consumption taxes are excluded.

21

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Changes in accounting policy, etc.)(Application of Accounting Standard for Business Combinations, etc.)
The Companies have 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 for Business
Divestitures” (ASBJ Statement No. 7, September 13, 2013) and other relevant standards from fiscal 2016. As aresult, 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 capital surplus, and acquisition-related costs are treated as
expenses in the consolidated fiscal year in which they occurred. Also, for any business combinations on or after
the beginning of fiscal 2016, the adjustments of the purchase price allocation following the determination of theprovisional accounting treatment are reflected in the consolidated financial statements in which the businesscombination occurred. In addition, the presentation of net income has been changed, and the presentation ofminority interests has been changed to non-controlling interests. To reflect these changes in presentation, theconsolidated financial statements of 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 havebeen applied from the beginning of fiscal 2016 and thereafter.
The effect of this change on the consolidated statement is immaterial.

(Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements)
The Companies have 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 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”) Accounting Standards Codification, Topic
350, “Intangible-Goodwill and Other” using the remaining amortization period of goodwill on the consolidated
financial statements.
There is no effect on the consolidated statement of income.

22

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Changes in presentation)
1. Consolidated Statement of Cash Flows
1) “Amortization of goodwill” and “Share of (profit) loss of entities accounted for using equity method”
In the Cash Flows from Operating Activities section, “Amortization of goodwill” was presented separately in theprevious fiscal year. Due to a decline in financial materiality, “Amortization of goodwill” is now presented in“Other”. ”Share of (profit) loss of entities accounted for using equity method” was included in “Other” in theprevious fiscal year. Due to an increase in financial materiality, “Share of (profit) loss of entities accounted forusing equity method” is now presented separately. To reflect these changes in method of presentation, theconsolidated financial statements for the previous fiscal year have been reclassified.
As a result, in the Cash Flows from Operating Activities section, the ¥2,146 million that had been previously
presented as “Amortization of goodwill” and the ¥18,145 million that had been previously presented as “Other”
in the Consolidated Statement of Cash Flows for the previous fiscal year have now been restated as “Share of(profit) loss of entities accounted for using equity method” of the ¥ (396) million and “Other” of the ¥20,688
million.
2) “Payments of obligations under finance leases” and “Proceeds from non-controlling interests for additional
shares”
In the Cash Flows from Financing Activities section, “Payments of obligations under finance leases” and“Proceeds from non-controlling interests for additional shares” were presented separately in the previous
fiscal year. Due to a decline in financial materiality, “Payments of obligations under finance leases” and“Proceeds from non-controlling interests for additional shares” are now presented in “Other”. To reflect thesechanges in method of presentation, the consolidated financial statements for the previous fiscal year have been
reclassified.
As a result, in the Cash Flows from Financing Activities section, the ¥ (7,429) million that had been previously
presented as “Payments of obligations under finance leases” and the ¥1,969 million that had been previously
presented as “Proceeds from non-controlling interests for additional shares” in the Consolidated Statement of
Cash Flows for the previous fiscal year have now been restated as “Other”.

23

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Consolidated Balance Sheet)
Note 1 Accumulated depreciation of tangible fixed asset
Previous Year(As of December 31, 2015)¥2,520,716 million

Current Year(As of December 31, 2016)¥2,578,439 million

Note 2 Assets pledged as collateralPrevious Year(As of December 31, 2015)¥1,078 million

Current Year(As of December 31, 2016)¥843 million

Obligations corresponding to the preceding
Previous Year(As of December 31, 2015)
Short-term borrowings
Long-term borrowings¥208 million¥82

Note 3 Assets or liabilities related to non-consolidated subsidiaries and affiliates
Previous Year(As of December 31, 2015)
Investments in securities¥17,105 million

Current Year(As of December 31, 2016)¥37 million¥74

Current Year(As of December 31, 2016)¥14,177 million

Note 4 Balance of trade notes discounted
Previous Year(As of December 31, 2015)¥565 million

24

Current Year(As of December 31, 2016)¥221 million

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Consolidated Statement of Income)Note 1 Research and development expenses
Previous Year
(Year ended December 31, 2015)

Current Year
(Year ended December 31, 2016)¥94,977 million¥95,403 million

General and administrative expenses

Note 2 Gain on sales of tangible assets
Previous Year (Year ended December 31, 2015)
Gain on sales of tangible assets mainly consists of gain on sales of land.

Notes 3 Impairment loss
Current Year (Year ended December 31, 2016)
The Companies group their assets for businesses in accordance with the classifications used for internalmanagement. Assets to be disposed (assets that the Companies plan to dispose of through scrapping or sale)and idle 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 Companies 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 toreorganization of 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.

Notes 4 Loss related to reorganization of R&D and manufacturing base
Current 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 forpassenger cars and small trucks in the Tokyo plants to other domestic plants and the expansion of theresearch and development facilities.

25

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

Note 5 Loss on deconsolidation of subsidiaries
Previous Year (Year ended December 31, 2015)
Under US GAAP, the Companies have excluded Venezuelan subsidiary, Bridgestone Firestone Venezolana,
C.A. (“BFVZ”) and its subsidiary from its consolidated financial statements because other-than-temporary lack of
exchangeability between the Bolivar and the U.S. dollar is restricting the subsidiary´s ability to purchase raw
materials and pay dividends on a sustainable basis.

26

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Consolidated Statement of Changes in Net Assets)
Previous Year（Year ended 31 December 2015)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31, 2014

Increase

813,102――

813,10229,9652

89

29,878

Number of shares issued
Common stock(Thousands of shares)
Treasury stock
Common stock(Thousands of shares)(see note 1 & 2)

As ofDecember 31, 2015

Decrease

Notes 1: The increase of treasury stock consists of 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 89 thousand shares used for the exercise of stock options and other.

2. Stock acquisition rights

Details

Type of shares
to be used asstockacquisitionrightsNumber of shares to be used for Stock acquisition rights

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

As ofDecember31, 2014

Increase

Decrease

As ofDecember31, 2015

―

―

―

―

―

2,469

―

―

―

―

―

2,469

Resolution

Type

Total dividends(yen in millions)

Annual Shareholders’Meeting, March 24, 2015

Common StockBoard of Directors,
August 7, 2015

Common Stock

Stockacquisitionrights as
stock options

Filingcompany

Total

3. Dividends(1) Dividend payments
Dividend per
share

Record date

Effective date

46,988¥60

December 31,
2014

March 25,2015

46,993¥60

June 30,2015

September 1,
2015(2) Dividends whose record date is in the current year and effective date is in the following fiscal year
Total
Dividend per
Resolution
Type
dividends
SourceRecord dateshare

Effective date( yen in millions )Annual Shareholders’Meeting, March 24, 2016

CommonStock54,825Retainedearnings

27¥70

December 31,
2015

March 25,2016

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

Current Year（Year ended 31 December 2016)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2015

As of
December 31,
2016

Number of shares issued
Common stock(Thousands of shares)

813,102――

813,102

Treasury stock
Common stock(Thousands of shares)(see notes 1 & 2 )29,8781

34

29,844

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 and other.
2: The decrease of treasury stock consists of 34 thousand shares used for the exercise of stock options and other.

2. Stock acquisition rights

DetailsStockacquisitionrights as
stock options

Filingcompany

Total

Type of shares
to be used asstockacquisitionrightsNumber of shares to be used for Stock acquisition rights

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

As ofDecember31, 2015

Increase

Decrease

As ofDecember31, 2016

―

―

―

―

―

2,975

―

―

―

―

―

2,975

3. Dividends(1) Dividend payments
Resolution

Type

Annual Shareholders’Meeting, March 24, 2016

CommonStock

Board of Directors,
August 9, 2016

CommonStockDividend per
share

Record date

Effective date

54,825¥70

December 31,
2015

March 25,
2016

54,826¥70

June 30,2016

September 1,
2016

Total dividends(yen in millions)(2) Dividends whose record date is in the current year and effective date is in the following fiscal year
Resolution

Type

Annual Shareholders’Meeting, March 24, 2017

CommonStock

Total dividends( yen in millions )54,828SourceDividend per
share

Record date

Effective date

Retainedearnings¥70

December 31,
2016

March 27,2017

28

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(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, 2015)

Current Year
(Year ended December 31, 2016)(As of December 31, 2015)
387,652
217,348
605,000(As of December 31, 2016)
483,006
167,697
650,703

Time deposits, bonds, etc. withterms of more than three months(178,273)(178,961)

Cash and cash equivalents

426,727

471,741

Cash and deposits
Short-term investments
Total

29

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Segment Information)
1. Overview of reporting segments
The Companies’ reporting segments are components of the Companies 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 Companies’ reporting segments consist mainly of Tire business including the production and sale of tires
and tubes, 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 Companies have two reporting segments: Tires andDiversified 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 2015 (January 1, 2015 - December 31, 2015)
Diversified
Products

Tires

Adjustments(notes)

Total(Yen in millions)
Consolidated

Net sales:―

3,790,251

19,243(19,243)－

635,049

3,809,494(19,243)3,790,251472,762

44,518517,281(33)

517,248

3,345,495

452,275

3,797,770(1,923)

3,795,846

181,782

20,551

202,333―

202,333

Amortization of goodwill

1,203

943

2,146

―

2,146

Investment for
equity-method affiliates

16,884223

17,108(2)

17,105

Increase in tangible andintangible fixed assets

229,885

23,694

253,580―

253,580

External customers

3,168,218

622,032

3,790,251Inter-segment

6,226

13,017

Total

3,174,445

Segment income(Operating income)Segment assets
Other
Depreciation andamortization

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

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

Consolidated Results for Fiscal 2016 (January 1, 2016 - December 31, 2016)
Tires

Diversified
Products(Yen in millions)
Adjustments(notes)

Total

Consolidated

Net sales:―

3,337,017

14,468(14,468)－

585,7113,351,486(14,468)

3,337,017

414,71134,819449,53018

449,548

3,312,938

409,100

3,722,039(1,802)3,720,236

168,295

19,766

188,062―

188,062

Amortization of goodwill

1,153

845

1,998

―

1,998

Investment for
equity-method affiliates

13,873309

14,182(4)

14,177

Increase in tangible andintangible fixed assets

183,264

16,073

199,338―

199,338

External customers

2,759,274

577,742

3,337,017

Inter-segment

6,500

7,968

Total

2,765,775

Segment income(Operating income)Segment assets
Other
Depreciation andamortization

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.

31

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Per share information)(Yen)
Previous Year
(Year ended December 31, 2015)

Current Year
(Year ended December 31, 2016)

Total equity per share

2,820.48

2,915.28

Net income per share

362.99339.04

Diluted net income per share

362.52338.52Items

Note: Total equity per share and diluted net income per share are calculated based on the following:

Previous Year
(Year ended December 31, 2015)

Current Year
(Year ended December 31, 2016)

Net income per share(Yen in millions)(Yen in millions)

Profit attributable toowners of parent

284,294

265,550――

284,294

265,550(Thousands of shares)
783,204(Thousands of shares)
783,240(Thousands of shares)(Thousands of shares)―
1,022(1,022)―
1,197(1,197)

Amount not belonging tocommon shareholders
Profit attributable to owners ofparent corresponding tocommon shareholders
Average number of shares heldby common shareholders
during term
Diluted net income per share
Adjustments of profit
attributable to owners of parent
Increase of common stock(stock option portion included in
the above)

Summary of residual shares with ―――――――――――――――――
no dilution effect and therefore
not included in calculation ofdiluted net income per share32―――――――――――――――――

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

(Significant subsequent events)
1. Acquisition of Treasury Stock
The Company has resolved to acquire Treasury Stock at the Board of Directors meeting held on February 17, 2017as per Article 165-3 and Article 156 of the Companies Act.
(1) Reason of Acquisition of Treasury StockTo enhance enterprise value by improving capital efficiency(2) Kind of shares to acquire

Common shares of the Company(3) Total number of shares to acquire

50 million shares (up to)(% of issued shares (not included Treasury Stock); 6.4%)(4) Total acquisition cost¥150 billion (up to)(5) Procedure

Market purchases based on the discretionary dealing contract
regarding repurchase of shares(6) Timing

February 20, 2017 to December 22, 2017

2. Cancellation of Treasury Stock
The Company has resolved to cancel Treasury Stock at the Board of Directors meeting held on February 17, 2017as per Article 178 of the Companies Act.

3.

(1) Kind of shares to cancel

Common shares of the Company(2) Total number of shares to cancel

20 million shares and all the common shares acquired
from February 20, 2017 to December 22, 2017(3) Effective date of the Cancellation

January 19, 2018

Issue of the Bonds
The Company has resolved to issue domestic unsecured straight bonds (the “Bonds”) at the Board of Directors

meeting held on February 17, 2017.

(1) Total amount of issue

Maximum of ¥150 billion,
Multiple offerings are possible by dividing this amount(2) Issuance period

February 17, 2017 to December 31, 2017(3) Issue price¥100 or larger per each principal amount of ¥100

(4) Coupon

Up to the sum of prevailing yields of Japanese Government Bonds
which have the corresponding maturities with the Bonds and 1.0%

(5) Maturity

Up to 10 years(6) Redemption

The Bonds will be redeemed in full upon maturity(7) Use of proceeds

Capital expenditures, investments,
loans and acquisition of treasury stock, etc.

33

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

6. Other(1) Senior Management Changes

1) New Member of the Board of Directors

Current occupation in parentheses

To be assumed after approval at the Company’s Annual Shareholders' Meeting on March 24, 2017

Member of the Board

Narumi Zaitsu[ Executive Vice President and Officer
Assistant to Executive Vice President andExecutive Officer
Responsible for
Corporate Administration ]2) Resigning Member of the Board of Directors

Plan after resignation in parentheses

Effective March 24, 2017

Member of the Board

Mikio Masunaga

3) Re-elected Members of the Board of Directors[ Advisor ]Current occupation in parentheses

To be assumed after approval at the Company’s Annual Shareholders' Meeting on March 24, 2017

Member of the Board

Masaaki Tsuya[ Member of the Board

CEO and

CEO and

Representative Executive Officer;

Representative Executive Officer;

Concurrently Chairman of the Board;

Concurrently Chairman of the Board;

Concurrently Chairman, BIOC

Concurrently Chairman, BIOC ]Member of the Board

Kazuhisa Nishigai[ Member of the Board

COO and

COO and

Representative Executive Officer;

Representative Executive Officer;

Concurrently Chief Technology Officer,

Concurrently Chief Technology Officer,

Responsible for Technology;

Responsible for Technology;

Concurrently Vice Chairman, BIOC

Concurrently Vice Chairman, BIOC ]Member of the Board

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

Sakie Tachibana[ Member of the Board ]Fukushima

Member of the Board

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

Yuri Okina[ Member of the Board ]34

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

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 ]* Ms. Sakie Tachibana Fukushima, 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 24, 2017

Member of the Board

Sakie Tachibana[ Member of the Board ]Fukushima

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

Keikou Terui[Member of the Board ]* Ms. Sakie Tachibana Fukushima, Mr. Scott Trevor Davis, Ms. Yuri Okina and Mr. Keikou Terui 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 24, 2017

Member of the Board

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

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

Seiichi Sasa

[ Member of the Board ]Member of the Board

Narumi Zaitsu[ Executive Vice President and Officer
Assistant to Executive Vice President andExecutive Officer
Responsible for
Corporate Administration ]Member of the Board

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

35

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20166) Members of the Compensation Committee

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 24, 2017

Member of the Board

Sakie Tachibana[ Member of the Board ]Fukushima

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

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

7) Resigning Member of Executive Officers

Plan after resignation in parentheses

Effective March 24, 2017

Senior Vice President andTakashi Tomomoto[ Senior Vice President

Executive Officer

Chief Marketing Officer

Chief Marketing Officer

Responsible for Marketing Solution

Responsible forStrategy ]Marketing Solution Strategy

8) Re-elected Members of Executive Officers

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 24, 2017

Member of the Board

Masaaki Tsuya[ Member of the Board

CEO and

CEO and

Representative Executive Officer;

Representative Executive Officer;

Concurrently Chairman of the Board;

Concurrently Chairman of the Board;

Concurrently Chairman, BIOC

Concurrently Chairman, BIOC ]Member of the Board

Kazuhisa Nishigai[ Member of the Board

COO and

COO and

Representative Executive Officer;

Representative Executive Officer;

Concurrently Chief Technology Officer,

Concurrently Chief Technology Officer,

Responsible for Technology;

Responsible for Technology;

Concurrently Vice Chairman, BIOC

Concurrently Vice Chairman, BIOC ]36

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

Executive Vice President andShuichi Ishibashi[ Executive Vice President andExecutive Officer

Executive Officer

Chief Quality Management Officer;

Chief Quality Management Officer

Responsible for

Responsible for

Quality Management and CSR;

Quality 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 Solution Business andGlobal Solution Business andDiversified Products;

Diversified Products;

Concurrently Executive Chairman,

Concurrently responsible for

Global Mining and Agricultural Solution

Global Solution Business ]in-house Company;
Concurrently Executive Chairman,
Diversified Products Solution
in-house Company;
Concurrently responsible for
Global Solution Business;
Concurrently CEO,Global Mining and Agricultural Solution
in-house Company

Executive Vice President andAkihiro Eto[ Executive Vice President andExecutive Officer

Executive Officer

Responsible for Corporate Planning;

Responsible for Corporate Planning;

Concurrently responsible for

Concurrently responsible for

Corporate Administration;

Corporate Administration;

Chief Financial Officer

Chief Financial Officer

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

Executive Officer

Vice Chairman, BIOC

Vice Chairman, BIOC

Responsible for Diversified Products,

Responsible for Diversified Products,

Sports and Cycle Business;

Sports and 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. ]37

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2016

Executive Vice President and

Eduardo Minardi[ Executive Vice President andExecutive Officer of

Executive Officer ofBridgestone Corporation

Bridgestone Corporation

Executive Chairman of

Executive Chairman ofBridgestone Europe NV/SA

Bridgestone Europe NV/SA

Chairman ofChairman ofBridgestone Americas, Inc.

Bridgestone Americas, Inc. ]Senior Vice President andMinoru Shimizu[ Senior Vice President andExecutive Officer

Executive Officer

Responsible for Japan Tire Business;

Responsible for Japan Tire Business;

Concurrently responsible for Replacement

Concurrently responsible for Replacement

Tire Sales;

Tire Sales;

Concurrently Chairman ofConcurrently Chairman ofBridgestone Tire Japan Co., Ltd.

Bridgestone Tire Japan Co., Ltd. ]Senior Vice President and Executive

Franco Annunziato[ Senior Vice President and Executive

Officer of Bridgestone Corporation

Officer of Bridgestone Corporation

Executive Chairman and CEO of

Executive Chairman and CEO of

Bridgestone Asia Pacific Pte. Ltd.

Bridgestone Asia Pacific Pte. Ltd. ]9) New Members of Corporate Officers

Current occupation in parentheses

Effective March 24, 2017

Vice President and Officer

Tsuyoshi Yoshimi[ Director, Finance Division ]Teruo Kunitake[ Director, Material Production System

Auditing

Vice President and Officer
Tire Production System

Development Division, Advanced Tire

Development;

Production System Development Division ]Concurrently Director,
Material Production System
Development

Vice President and Officer

Tomohiro Kusano[ Director, Diversified Products
Development Division Ⅰ]

Diversified Products Development andProduction Technology;
Concurrently Director, Diversified Products
Development Division Ⅰ

38

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 201610) Promotion of Corporate Officers

Current occupation in parentheses

Effective March 24, 2017

Vice President and Senior Officer

Hidekazu Kimizu[ Vice President and Officer

Responsible for

Chief Compliance Officer,

Corporate Management;

Chief Risk Officer, Legal Affairs,

Concurrently

Intellectual Property andChief Compliance Officer,

General Affairs

Legal Affairs andCorporate Management

Intellectual Property;

Public Relations andConcurrently

External Relations;

Corporate Management

Concurrently Director, Office of Corporate
Management ]Vice President and Senior Officer

Yukihiko Hoso

Responsible for[ Vice President and Officer
Japan Tire Production ]Production Technology;
Production Technology Innovation

11) Resigning Corporate Officers

Plan after resignation in parentheses

Effective March 24, 2017

Vice President and Senior Officer

Ryutaro Ishii[ Member of the Board,

Responsible for

Senior Vice President of

Production Technology

Bridgestone Cycle Co., Ltd. ]Concurrently Tire Production System
Development;
Member of the Board, Senior Vice Presidentof Bridgestone Cycle Co., Ltd.

Vice President and Officer

Kunitoshi Takeda

Assistant to Executive Vice
President and Executive Officer
Responsible for
Corporate Administration

39[ Advisor ]