Financial Resultsfor 1st Half of Fiscal 2014

Bridgestone Corporation
August 8, 2014

Contents

1. Business and Financial Performance for
1st Half of Fiscal 2014

P.3

2. Consolidated Projections for Fiscal 2014

P.9Copyright © 2014 Bridgestone Corporation | Aug.8, 20142

1. Business and Financial Performance for
1st Half of Fiscal 2014

Business Environment Surrounding Bridgestone Group
Currency Exchange

Estimated Tire Demand
Tire Demand for 2014 1st Half : Original Equipment (VS PY)
Passenger
Radial Tires

2013

Truck and Bus
Radial Tires

Japan

107％

111％

N. America

105％

112％

Europe102％102％

1st half
US DollarEuro2014
2nd half

1st half

96

100

102

126

134

140

Raw Materials
Tire Demand for 2014 1st Half : Replacement (VS PY)
Passenger
Radial Tires

Market trend of natural rubber and crude oil (Average)
2013

Truck and Bus
Radial Tires

Japan

106％

117％

N. America

105％

110％

Europe108％

110％* The numbers of demand are estimated by Bridgestone Corporation

1st half

2014
2nd half

1st half

Natural Rubber<TSR20>*(￠/kg)

270

232

186

Natural Rubber<RSS#3>*(￠/kg)

303

255

219

94

101

101

Crude Oil
<WTI>(＄/ｂｂl)*Source : Current Prices for Singapore Commodity Exchange Limited

Copyright © 2014 Bridgestone Corporation | Aug.8, 20144

Consolidated Results for 1st Half of Fiscal 2014
Yen/US dollar rate:

96102+6100(Yen in billions) Yen/Euro rate:

126

140+14135（Ref. Feb 18, 2014
announcement）
2014 1st HalfProjections

2013
1st Half Results

2014
1st Half Results

VS PY (%)

Net Sales

1,705.1

1,750.2+31,790.0

Tires
DiversifiedProducts

1,447.7

1,469.2+1

1,520.0

264.4

288.8

+9280.0

190.3

223.1

+17210.0（Ratio） 11.2%（Ratio） 12.7%（Ratio）+1.6%（Ratio） 11.7%

Tires

173.2

202.0

+17189.0Diversified
Products

17.1

21.0

+2320.0

Ordinary Income

184.9

219.9

+19201.0

Net Income

117.0

142.2

+22127.0

Dividends per Share

27 yen40 yen+13 yen

40 yenOperating Income

Copyright © 2014 Bridgestone Corporation | Aug.8, 2014

5

Analysis of Consolidated Operating Income for 1st Half of Fiscal 2014

(Yen in billions)

ForeignExch. Gain
+19.0

230
Raw
Materials
+39.0

210
Price, Mix,
Volume etc.
(17.3)

190

223.1
SGA
(6.0)

170

190.3

Depreciation(1.0)

StrategicProducts(1.0)

1502013 1st Half
Operating Income+32.7

2014 1st Half
Operating Income*Figures within parentheses mean minus
Copyright © 2014 Bridgestone Corporation | Aug.8, 20146

Financial Results for 1st Half of Fiscal 2014 : Geographic Segments(Yen in billions)2013
1st Half Results

2014
VS PY (%)
1st Half Results（Ref. Feb 18, 2014
announcement）
2014 1st HalfProjections

Japan

609.9

603.0

(1)

600.0

The Americas

802.5

833.9

+4860.0

Europe

200.9

222.8

+11210.0

Other Regions

426.5

408.5

(4)

430.0

Consolidated
Net Sales

1,705.1

1,750.2+31,790.0

Japan

108.4

93.5

(14)

88.0

The Americas

78.2

83.9+780.0

Europe0.69.2＋0.5

Other Regions

37.1

33.5(10)39.0

Consolidated Operating
Income

190.3

223.1

+17210.0*Figures within parentheses mean minus
Copyright © 2014 Bridgestone Corporation | Aug.8, 2014

7

B/S Highlights(Yen in billions)

FY 2014 1st Half
(As of Jun. 30, 2014)

VS. Dec. 31, 2013

Total Assets

3,416.7(160.2)

Total Current Assets

1,606.2(111.0)Total Fixed Assets

1,810.4(49.1)Net Assets
Ratio of total equity to total assets (%)

1,915.1
54.3

+52.2
+3.8

Interest-Bearing Debt (Net)

248.2

+8.5

2014
1st Half Results

VS. PY

120.3
88.6+11.6+4.1

Capital Expenditure
Depreciation*Figures within parentheses mean minus

Copyright © 2014 Bridgestone Corporation | Aug.8, 201482. Consolidated Projections for Fiscal 2014

Forecast of Business Environment Surrounding Bridgestone Group
Estimated Tire DemandCurrency Exchange

Tire Demand for 2014 : Original Equipment (VS 2013)
Passenger
Radial Tires
Japan

96％

102％

N. America

105％

109％

Europe102％98％

Asia *1

112％

101％

FY

Ref.
Feb18,2014
announcement

1st half

2nd half

US Dollar

102100101100Euro140135138135

Projections

Raw Materials

Tire Demand for 2014 : Replacement(VS 2013)
Passenger
Radial Tires

2014

Truck and Bus
Radial Tires

Truck and Bus
Radial Tires

Japan99％

103％

N. America

102％

107％

Europe105％

104％

Asia *1116％

111％*1 Total of Thailand, Indonesia, India, and China*2 The numbers of demand are estimated by Bridgestone Corporation*source : Singapore Commodity Exchange Limited

Copyright © 2014 Bridgestone Corporation | Aug.8, 201410

Consolidated Projections for Fiscal 2014
Yen/US dollar rate:（単位：億円）Yen/Euro rate:

98

101+3100130

138+81352013
Results

2014
Projections

VS PY(%）（Ref. Feb 18, 2014
announcement）
2014 Projections

Net Sales

3,568.03,650.0+23,800.0

Tires

3,036.9

3,080.0+13,250.0

Diversified
Products

546.2

580.0

+6570.0

Operating Income

438.1

475.0

+8460.0（Ratio） 12.3%（Ratio） 13.0%（Ratio） +0.7%（Ratio） 12.1%

Tires

399.4

434.0

+9419.0

Diversified
Products

38.5

41.0

+640.0Ordinary Income

434.7

454.0

+4442.0

Net Income

202.0

293.0

+45285.0

57 yen80 yen+23 yen

80yen(Yen in billions)*Figures within parentheses mean minus

Dividends per Share

Copyright © 2014 Bridgestone Corporation | Aug.8, 201411Analysis of Consolidated Operating Income for Fiscal 2014
Exchange rate
Sensitivity (full year)(Yen in billions)500

USD：4.3bil. Yen
EUR：0.7bil. Yen
Raw
Materials+55.0

Price, Mix,
Volume etc.
(30.2)

450

SGA
(9.0)

400

Depreciation(4.0)

ForeignExch. Gain
+19.0

StrategicProducts
+6.0

475.0

438.1

350

2013
Operating Income+36.8

2014
Operating Income*Figures within parentheses mean minus
Copyright © 2014 Bridgestone Corporation | Aug.8, 201412

Financial Projections for Fiscal 2014 : Geographic Segments(Yen in billions)

2000

20%

1500

15%

1000

10%

5005%00%
2011

2012
Sales

2013

OP%

Sales ( billion )Japan[Japan Tire + Specialty Tire + Diversified Products]

Net Sales

1,250.0(2)1,290.0

Operating
Income201.0(8)

200.0

1000

10%

500

5%

00%
Sales

OP%

2014

OP%

15%

2013

+6%～+10%(Yen in billions)

1500

2012

Projections～+5%

Truck and Bus Radial Tires

Ref.
Feb18,2014
announcement

2014
Projections

VS. PYNet Sales

1,720.0+4

1,790.0

Operating
Income174.0+11167.0

20%

2011

（％）

Passenger Radial Tires

OP%Americas[North America + Latin America]

Sales ( billion )VS. PY＜2014 REP Tire Sales (unit base, vs.PY%)＞

2014

2000

Ref.
Feb18,2014
announcement

2014
Projections（％）

Projections＜2014 REP Tire Sales (unit base, vs.PY%)＞
Passenger Radial Tires+6%～+10%

Truck and Bus Radial Tires+6%～+10%*Figures within parentheses mean minus
Copyright © 2014 Bridgestone Corporation | Aug.8, 201413

Financial Projections for Fiscal 2014 : Geographic Segments(Yen in billions)

2000

20%

1500

15%

1000

10%

5005%

OP%

Sales ( billion )Europe[Western Europe + Eastern Europe]

2011

2012
Sales

2013

VS. PYNet Sales

440.0+4440.0

Operating
Income19.0+828

8.5（％）

Projections＜2014 REP Tire Sales (unit base, vs.PY%)＞

0%0Ref.
Feb18,2014
announcement

2014
Projections

2014

OP%

Passenger Radial Tires～+5%

Truck and Bus Radial Tires～+5%(Yen in billions)

2000

20%

1500

15%

1000

10%

500

5%00%

2011

2012
Sales

2013
OP%

2014

OP%

Sales ( billion )Others[Asia&Pacific + China + Middle East&Africa +Russia]

Ref.
Feb18,2014
announcement

2014
Projections

VS. PYNet Sales

860.0-940.0

Operating
Income82.0+293.5（％）

Projections＜2014 REP Tire Sales (unit base, vs.PY%)＞
Asia
Pacific

Passenger Radial Tires+11%～+15%

Truck and Bus Radial Tires+11%～+15%

China

Passenger Radial Tires+16%～+20%

Truck and Bus Radial Tires+6%～+10%

Copyright © 2014 Bridgestone Corporation | Aug.8, 201414

To Achieve Financial Targets
Changes in business environment vs. original plan・Raw materials
・Tire Demand(2014FY)

Price hike delay than expected
JPN / N.America / Euro ： Slightly better
Emerging countries ： Slightly weaker(Economic expansion slowing down and social climate remain uncertain, i.e.; some Asia & LA countries)

Mining off-the-road tires ： Weaker but bottomed out in the 1st quarter2014 Projections(Feb18,2014 announcement)

Net Sales ： 3,800 billion yen
Op Income ： 460 billion yenOP%： 12.1 ％ROA： Improve further

Maintain performance andimprove further to the higherlevel2014 Revised Projections
Net Sales
Op IncomeOP%
ROA： 3,650 billion yen： 475 billion yen： 13.0 ％： Improve further

Continue to achieve best profit
・Strengthen business competencies in mid&long-term
・Increase sales & profit without favorable currency

Key measures to achieve targets
・Develop firm and sustainable competitive advantages in both quantity and quality
・Ensure sustainable growth and profitability of the specialty tire businesses
・Expansion of the diversified product business・Reinforcement of fundamental competitiveness・Make the most use of our resources on a Group and Global basis
Copyright © 2014 Bridgestone Corporation | Aug.8, 201415

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