Bridgestone Corporation (5108)

First quarter results of fiscal 2012

Consolidated Financial Statements
for the First Quarter of the Fiscal Year Ending December 31, 2012
May 9, 2012
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
Stock exchange listings: Tokyo, Osaka, Nagoya, Fukuoka
Code number:5108
URL:http://www.bridgestone.co.jp
Representative: Masaaki Tsuya, CEO and Representative Board Member
Contact:
Takehisa Kichise, Treasurer, General Manager
Telephone:+81-3-3563-6985
Scheduled date of quarterly securities report submission:
May 11, 2012
Scheduled date of dividend payment commencement:
Supplementary information for the quarterly financial statements to be prepared:
Yes
Meeting to explain for the quarterly financial statements to be held:Yes(for institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Quarter of Fiscal 2012 (January 1, 2012 - March 31, 2012)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales

Operating income

Ordinary income

Net income

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

726,245

3.1

63,016

12.8

61,7399.8

42,20334.7

6.9

55,86855.2

56,24780.3

31,327

77.6

Three months ended
March 31, 2012
Three months ended
March 31, 2011

704,333(Reference) Comprehensive Income:Three months ended March 31, 2012
Three months ended March 31, 2011

Net income
per share
Three months ended
March 31, 2012
Three months ended
March 31, 2011

¥141,547 million(97.6%)¥71,640 million (- %)Diluted net income
per share
Yen

Yen

53.92

53.90

40.03

40.02

(2) Consolidated Financial Position
Total assets

Ratio of total equity tototal assets

Net assets

Yen in millions

Yen in millions%

As of Mar. 31, 2012

2,903,741

1,297,166

43.3

As of Dec. 31, 2011
(Reference) Total equity

2,677,344

1,165,673
As of March 31, 2012
As of December 31, 2011

42.2
¥1,258,628 million¥1,130,577 million

2. Dividends
1st quarterend

2nd quarter
end

Annual Dividend
3rd quarter
end

Yen

Yen

Yen

Yen

10.00

－

12.00

22.00

－

16.00

32.00

Yen

FY 2011
FY 2012－－FY 2012
16.00(Projection)(Note) Changes from the latest forecasts released: No

Year -endTotal

3. Consolidated Projected Results for Fiscal 2012 (January 1, 2012 - December 31, 2012)(Percentage figures represent changes from the same period of previous year)
Net income
Ordinary income
Net income
per share

Net sales
Yen in millions

Operating income
Yen in millions%

Yen in millions%

Yen in millions%

YenFirst half year
1,520,000
4.2
118,000
FY 20123,240,000
7.1
269,000(Note) Changes from the latest forecasts released: No

%

26.0
40.6

110,000
250,000

19.7
39.4

70,000168,000

29.4

89.44
214.6563.2

Bridgestone Corporation (5108)

First quarter results of fiscal 2012

4. Others(1) Changes in principal subsidiaries during the three months ended March 31, 2012 : No
(Changes in specified subsidiaries involving change in consolidation scope)(2) Application of special accounting treatments for quarterly financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting policy, etc.
: No
2) Changes in 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):
March 31, 2012
813,102,321 shares
December 31, 2011
813,102,321 shares
2) Number of shares of treasury stock at period end
March 31, 2012
December 31, 2011

30,441,596 shares
30,441,046 shares

3) Average outstanding number of shares (during the first quarter)
First quarter ended March 31, 2012
782,661,060 sharesFirst quarter ended March 31, 2011
782,662,772 shares* Implementation status about the quarterly review
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 not completed
at the time of the disclosure of these financial statements.
* Statement regarding appropriate use of forward-looking statements and other notes
The preceding descriptions of projections and plans are “forward-looking statements,” which involve known andunknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual performance andfinancial results to differ substantially from management’s projections and plans.

Bridgestone Corporation (5108)

First quarter results of fiscal 2012

[ Index ]1. Qualitative Information for the First Quarter of Fiscal 2012

…P2

(1) Qualitative Information on Consolidated Operating Results…P2(2) Qualitative Information on Consolidated Financial Position…P4(3) Qualitative Information on Projections of Consolidated Results…P4

2. Other Information…P5(1) Application of special accounting treatments for quarterly consolidated financial statements…P5(2) Additional Information…P5

3. Consolidated Quarterly Financial Statements…P6(1) Consolidated Balance Sheet…P6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…P8

Consolidated Statements of Income…P8

Consolidated Statements of Comprehensive Income…P9(3) Notes regarding going concern assumption…P10(4) Segment Information…P10(5) Notes regarding to significant changes in the amount of shareholders’ equity

…P10

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Bridgestone Corporation (5108)

First quarter results of fiscal 2012

1. Qualitative Information for the First Quarter of Fiscal 2012
The Bridgestone Corporation is referred to as the “Company,” and the Company and its subsidiaries are referred
to as the “Companies.”(1) Qualitative Information on Consolidated Operating Results
1) Sales and earnings
FY 2012 1Q

FY 2011 1Q(Three months ended(Three months ended

March 31, 2012)

March 31, 2011)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

Net sales

726.2

704.3

21.9

3

Operating income

63.0

55.8

7.1

13

Ordinary income

61.7

56.2

5.4

10

Net income

42.2

31.3

10.8

35

In the first quarter of fiscal 2012(January 1 to March 31, 2012), the Companies’ operating environment was
plagued by raw material prices remaining at relatively high levels and the continuing strong Japanese yen.
Despite these challenges, the domestic economy showed signs of recovery, including demand created byre-building from the Great East Japan Earthquake and rebounding sales of new vehicles. The United States
economy was gradually recovering, while the financial crisis had had an impact and damaged the European
economy. Asian economic expansion showed signs of a slowdown, particularly in China and India.
Under these operating conditions, the Companies continued working to achieve the goal of becoming theWorld’s undisputed No. 1 tire and rubber company in both name and reality. Stepping up our efforts on a global
basis, the Companies focused on increasing the sales of highly competitive products, strengthening supply
capacity, improving manufacturing productivity, enhancing technology and effectively utilizing our management
resources. Moreover, with business conditions evolving at unprecedented speed, including the changing
structures for demand and competition, the Companies have been striving to rapidly implement a range ofinitiatives to enhance our ability to respond quickly to market trends, increase the sales of strategic products,
construct and enhance a business model that will extend beyond the mere sale of products, and develop
eco-friendly products and businesses.
As a result, net sales in the first quarter of fiscal 2012 was ¥726.2 billion, an increase of 3% over the firstquarter of fiscal 2011, operating income was ¥63.0 billon, an increase of 13%, ordinary income was ¥61.7 billion,
an increase of 10% and net income was ¥42.2 billion, an increase of 35%.

2

Bridgestone Corporation (5108)

First quarter results of fiscal 2012

2) Segment Information
FY 2012FY 2011

1Q

1Q
Increase(Three months ended(Three months ended

March 31, 2012)

March 31, 2011)(Decrease)

Yen in billions

Yen in billions

Yen in billions%

Net Sales

602.5

590.7

11.8

2

Operating income

57.0

54.5

2.4

4

Diversified
Products

Net Sales

127.9

117.2

10.6

9

6.0

1.3

4.7

361

Consolidated
Results

Net Sales

726.2

704.3

21.9

3

Operating income

63.0

55.8

7.1

13

Tires

Operating income

In the tire segment, the Companies worked to maximize sales momentum by introducing appealing new products
globally, enhanced strategic products and reinforce fundamental competencies such as specification optimization, andresponded promptly to demand fluctuation of each region.
In Japan, unit sales of replacement tires for passenger cars and light trucks remain unchanged from the first quarter offiscal 2011. However, due to large recovery in vehicle production volume, unit sales of tires for new vehicles increased
significantly from the first quarter of fiscal 2011. The unit sales of tires for trucks and buses remain unchanged. In theAmericas, the unit sales of passenger and light truck tires in North America decreased compared to the first quarter offiscal 2011 due to a decline in the sales of replacement tires. Additionally, unit sales of tires for trucks and busesdecreased substantially due to a decline in the sales of replacement tires. In Europe, unit sales of tires for passenger
cars and light trucks decreased substantially compared to the first quarter of fiscal 2011 due to a decline in the sales of
replacement tires, as well as tires for trucks and buses. In Asia Pacific, unit sales of passenger cars and light trucks grewfirmly compared to the first quarter of fiscal 2011. The unit sales of tires for trucks and buses strongly increased led byan increase of original equipment tires. In China, unit sales of passenger and light truck tires were substantially downfrom the first quarter of fiscal 2011 due to a decline in the sales of replacement tires, as well as tires for trucks and buses.
In the specialty tire business, unit sales of large and ultralarge off-the-road radial tires for construction and mining
vehicles strongly increased compared to those of the first quarter of fiscal 2011 due to expansion of production capacity.
As a result, net sales and operating income in the tire segment in the first quarter of fiscal 2012 totaled ¥602.5 billionand ¥57.0 billon, an increase of 2% and 4% from the first quarter of fiscal 2011, respectively.
In the diversified products segment, due to the recovery of demand in automotive parts and in construction business of
BSAM Diversified Products business, net sales totaled ¥127.9 billion, an increase of 9% from the first quarter of fiscal
2011. Operating income was ¥6.0 billion, an increase of 361% from first quarter of fiscal 2011.

(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.

3

Bridgestone Corporation (5108)

First quarter results of fiscal 2012

(2) Qualitative Information on Consolidated Financial Position
Assets, Liabilities, and Net assets positions at the end of the first quarter of fiscal 2012 were as follows.

(Assets)
In assets, merchandise and finished products, tangible assets and investments in securities each increased ¥49.1
billion, ¥45.8 billion and ¥56.7 billion respectively. As a result, assets increased ¥226.3 billion compared with the end of
the previous fiscal year, to ¥2,903.7 billion.

(Liabilities)
In liabilities, while accounts payable-other decreased ¥27.5 billion, short-term borrowings and commercial paper eachincreased ¥60.0 billion and ¥18.5 billion. As a result, liabilities increased ¥94.9 billion compared with the end of theprevious fiscal year, to ¥1,606.5 billion.

(Net assets)
In net assets, cash dividends paid were ¥9.3 billion, while net income was ¥42.2 billion, net unrealized gain on
available-for-sale securities and foreign currency translation adjustments each increased ¥46.7 billion and ¥53.6 billion.
As a result, net assets increased ¥131.4 billion compared with the end of the previous fiscal year, to ¥1,297.1 billion.
Consequently, the ratio of total equity to total assets increased 1.1% compared with the end of the previous fiscal year,
to 43.3%.

(3) Qualitative Information on Projections of Consolidated Results
There are no changes in consolidated projections announced on February 16, 2012.

4

Bridgestone Corporation (5108)

First quarter results of fiscal 2012

2. Other Information(1) Application of special accounting treatments for quarterly consolidated financial statements(Calculation for income tax expense)
Income tax expense was calculated based upon an estimated effective tax rate for fiscal 2012.
(2) Additional Information(Application of the “Accounting Standard for Accounting Changes and Error Corrections” and others)
For the accounting changes and error corrections made after the beginning of the first quarter of fiscal
2012, the companies have adopted the “Accounting Standard for Accounting Changes and Error
Corrections” (ASBJ Statement No.24 of December 4, 2009) and the “Guidance on Accounting Standard
for Accounting Changes and Error Corrections” (ASBJ Guidance No.24 of December 4, 2009).

5

Bridgestone Corporation (5108)

First quarter results of fiscal 2012

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
FY 2011(As of December 31, 2011)

FY 2012 1Q(As of March 31,2012)

AssetsCurrent Assets
Cash and deposits

130,343

148,237

Notes and accounts receivable

438,764

432,403

Short-term investments

90,133

106,349

Merchandise and finished products

314,454363,583

Work in process

34,61440,430Raw materials and supplies

171,411

182,297

Other

152,102174,865

Allowance for doubtful accounts(8,109)(8,139)1,323,716

1,440,028

Buildings and structures, net

322,704

331,758

Machinery, equipment and vehicles, net

347,195

357,055

Other, net

311,432

338,385

Total tangible assets

981,3311,027,199

27,94329,647

Investments in securities

182,536

239,269

Other

165,116

171,178

Allowance for doubtful accounts(3,299)(3,581)

Total investments and other assets

344,353

406,866

Total Fixed Assets

1,353,628

1,463,713

Total

2,677,344

2,903,741

Total Current Assets
Fixed Assets
Tangible assets

Intangible assets
Investments and other assets

6Bridgestone Corporation (5108)

First quarter results of fiscal 2012

(Yen in millions)
FY 2011(As of December 31,2011)

FY 2012 1Q(As of March 31,2012)

Liabilities
Current Liabilities
Notes and accounts payable

196,742

203,738

Short-term borrowings

198,115

258,139

Commercial paper

18,93337,441

Current portion of bonds

13,174

18,246754

903

Income taxes payable

22,854

28,684

Accounts payable-other148,756

121,234

Other

198,398

217,875

Total Current Liabilities

797,730

886,263

Bonds

123,079

123,569

Long-term borrowings

238,474

226,920

Lease obligations

10,061

10,605

Accrued pension and liability for retirement
benefits

257,630

265,966

Other

84,694

93,247

Total Long-term Liabilities

713,940

720,310

1,511,671

1,606,574

Common stock

126,354

126,354

Capital surplus

122,629

122,629

1,279,978

1,312,794(57,248)(57,249)

1,471,713

1,504,528

97,750144,542(890)(1,632)(331,784)(278,159)(106,211)(110,651)(341,135)(245,900)

770

770

Minority Interests

34,32437,767

Total Net Assets

1,165,673

1,297,166

Total

2,677,344

2,903,741

Lease obligations

Long-term Liabilities

Total Liabilities

Net Assets
Shareholders' equity

Retained earnings
Treasury stock-at cost
Total Shareholders’ equity
Accumulated other comprehensive
incomeNet unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative
instruments
Foreign currency translation adjustments
Post retirement liability adjustment forforeign companies
Total accumulated other comprehensive
incomeStock acquisition rights

7

Bridgestone Corporation (5108)

First quarter results of fiscal 2012

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
First Quarter(Yen in millions)
FY 2011 1Q(Three months ended
March 31, 2011)

FY 2012 1Q(Three months ended
March 31, 2012)

Net Sales

704,333

726,245

Cost of Sales

472,291

485,884

Gross profit

232,042

240,360

Goods freightage expenses

31,88331,127Advertising and promotion expenses

18,557

19,318

Salaries, allowances and bonuses

45,866

48,566Retirement benefit expenses

3,778

3,801

Depreciation

5,929

5,652

Research and development expenses

20,02019,980Other50,13648,897

Total selling, general andadministrative expenses

176,173

177,344

Operating income

55,86863,016

Interest income

1,092

744

Dividend income

118

115

Foreign currency exchange gain

1,861

995

Other

4,000

5,229

Total non-operating income

7,073

7,084

Interest expense

4,225

4,516

Other

2,469

3,844

Total non-operating expenses

6,695

8,360

Selling, General and Administrative Expenses

Non-operating Income

Non-operating expenses

Ordinary income

56,247

61,739Extraordinary Loss
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss on disaster

2,471

-

2,261

-

Total extraordinary losses

4,732

-

Income before income taxes andminority interests

51,514

61,739

Income taxes

18,124

17,839

Income before minority interests

33,39043,900Minority interests

2,062

1,696

Net income

31,32742,2038

Bridgestone Corporation (5108)

Consolidated Statements of Comprehensive Income
First Quarter

Income before minority interests

First quarter results of fiscal 2012

(Yen in millions)

FY 2011 1Q(Three months ended
March 31, 2011)
33,390

Other comprehensive income
Unrealized gain (loss) on available-for-salesecurities
Deffered gain (loss) on derivative
instruments
Foreign currency translation adjustments

FY 2012 1Q(Three months ended
March 31, 2012)
43,900

14,11946,791

(516)

(669)

25,03954,873(448)(4,439)56

1,091

38,25097,64771,640141,547

Shareholders of Bridgestone Corporation

68,654137,438

Minority Interests

2,986

4,108

Post retirement liability adjustment forforeign companies
Share of other comprehensive income inaffiliates
Total other comprehensive income
Comprehensive income
Comprehensive income attribute to:9Bridgestone Corporation (5108)

First quarter results of fiscal 2012

(3) Notes regarding going concern assumption

Not applicable(4) Segment Information
Information about Sales and Income (Loss) by reportable segment
FY 2011 First Quarter (Three months ended March 31, 2011)(Yen in millions)

Diversified
Tires

Adjustments
Total

Consolidated

Products(Note)Net sales:
External customers－

590,091

114,242704,333

704,333

Inter-segment

670

3,045

3,715

(3,715)

Total

590,762

117,287

708,049(3,715)704,333

54,565

1,321

55,886(17)55,868－Segment income(Operating income)(Note) Adjustments of segment income refer to elimination of intersegment transactions.

FY 2012 First Quarter (Three months ended March 31, 2012)(Yen in millions)

Diversified
Tires

Adjustments
Total

Consolidated

Products(Note)Net sales:
External customers－

601,534

124,711726,245726,245

Inter-segment

1,040

3,212

4,252

(4,252)

Total

602,574

127,923

730,498(4,252)726,245

57,001

6,086

63,087(71)

63,016－

Segment income(Operating income)(Note) Adjustments of segment income refer to elimination of intersegment transactions.

(5) Notes regarding to significant changes in the amount of shareholders’ equity

Not applicable10