Bridgestone Corporation (5108)

First half results of fiscal 2013

Consolidated Financial Statements
for the First Half of the Fiscal Year Ending December 31, 2013
August 9, 2013
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, Nagoya, Fukuoka
Code number:5108
URL:http://www.bridgestone.co.jp
Representative: Masaaki Tsuya, CEO and Representative Board Member Concurrently Chairman of the Board
Contact:
Satoshi Nakamura, Treasurer, General Manager
Telephone:+81-3-3563-6985
Scheduled date of quarterly securities report submission:
August 9, 2013
Scheduled date of dividend payment commencement:
September 2, 2013
Supplementary information for the quarterly financial statements to be prepared:
Yes
Meeting to explain for the quarterly financial statements to be held:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Half of Fiscal 2013 (January 1, 2013 - June 30, 2013)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales

Operating income

Yen in millions

Six months ended
June 30, 2013
1,705,190
Six months ended
June 30, 2012
1,488,970(Note) Comprehensive Income:Net income%

Yen in millions%

Yen in millions%

Yen in millions

%

14.5

190,39942.3

184,96743.4

117,04155.5

133,78542.9
128,98140.4
75,266Six months ended June 30, 2013
¥248,524 million(156.6%)
Six months ended June 30, 2012
¥96,865 million (4.7%)

39.1

2.0

Net income
per share
Six months ended
June 30, 2013
Six months ended
June 30, 2012

Ordinary income

Diluted net income
per share
Yen

Yen

149.52149.35

96.17

96.10

(2) Consolidated Financial Position
Total assets

Ratio of total equity tototal assets

Net assets

Yen in millions

Yen in millions%

As of Jun. 30, 2013

3,305,098

1,652,244

48.4

As of Dec. 31, 2012
(Reference) Total equity

3,039,798

1,417,347
As of June 30, 2013
As of December 31, 2012

45.2
¥1,598,378 million¥1,373,021 million

2. Dividends
2nd quarter
end

Annual Dividend
3rd quarter
end

Yen

Yen

Yen

Yen

Yen

－
－

16.00
27.00

－

16.00

32.00

－

27.00

54.00

1st quarterend
FY 2012FY 2013

FY 2013(Projection)(Note) Changes from the latest forecasts released: No

Year -endTotal

3. Consolidated Projected Results for Fiscal 2012 (January 1, 2013 - December 31, 2013)(Percentage figures represent changes from the same period of previous year)
Net income
Operating income
Ordinary income
Net income
per share

Net sales
Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

FY 20133,590,000
18.1
400,000(Note) Changes from the latest forecasts released: Yes

39.9

381,000

33.7

246,000

43.4

314.22

Bridgestone Corporation (5108)

First half results of fiscal 2013

* Notes(1) Changes in principal subsidiaries during the six months ended June 30, 2013 : No
(Changes in specified subsidiaries involving change in consolidation scope)(2) Application of special accounting treatments for consolidated quarterly financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting policy, etc.
: Yes2) Changes in policy other than 1): No3) Changes in accounting estimates: Yes4) Restatements: No(Note) These are subject to Article 10-2 and 10-5 of “the Ordinance on Terminology, Forms, andPreparation Methods of Quarterly Financial Statements, etc.” For further details, please refer to“Other Information (Notes) (2) Changes in accounting policy, Changes in accounting estimatesand Restatements” on page 6.
(4) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
June 30, 2013
813,102,321 shares
December 31, 2012
813,102,321 shares
2) Number of shares of treasury stock at period end
June 30, 2013
December 31, 2012

30,202,462 shares
30,440,507 shares

3) Average outstanding number of shares (during the first half)First Half ended June 30, 2013
782,788,507 sharesFirst Half ended June 30, 2012
782,661,812 shares* Implementation status about the quarterly review
Although these financial statements are exempt from quarterly review procedures as required by the Financial
Instruments and Exchange Act, a part of quarterly review based on Financial Instruments and Exchange Act werecompleted at the time of the disclosure of these financial statements.
* Statement regarding appropriate use of forward-looking statements and other notes
Projections of consolidated results for fiscal 2013 announced on February 18, 2013 are revised in thisdocument. The preceding descriptions of projections and plans are “forward-looking statements,” which involve
known and unknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual
performance and financial results to differ substantially from management’s projections and plans, and thestatements are not guarantees of future business performance. For details, refer to “1. Qualitative Information
for the First Half of Fiscal 2013, (3) Qualitative Information on Projections of Consolidated Results”, on page 5.

Bridgestone Corporation (5108)

First half results of fiscal 2013

[ Index ]1. Qualitative Information for the First Half of Fiscal 2013

…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…P5

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

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

Consolidated Statement of Income…P9

Consolidated Statement of Comprehensive Income…P10(3) Notes regarding going concern assumption…P11(4) Notes regarding significant changes in the amount of shareholders’ equity…P11(5) Segment Information

…P11

1

Bridgestone Corporation (5108)

First half results of fiscal 2013

1. Qualitative Information for the First Half of Fiscal 2013
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 2013 1H

FY 2012 1H(Six months ended(Six months ended

June 30, 2013)

June 30, 2012)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,705.1

1,488.9

216.2

15

Operating income

190.3

133.7

56.6

42

Ordinary income

184.9

128.9

55.9

43

Net income

117.0

75.2

41.7

56

Net sales

In the first half of fiscal 2013 (January 1 to June 30, 2013), the Companies’ operating environment was asfollows. The domestic economy showed signs of recovery with the correction of the appreciated Japanese yen.
The United States economy has shown signs of recovery, while the European economy remained stagnant andcontinuous financial instability discouraged actual business activities. Asian economic expansion showed signsof a slowdown, particularly in China and India. Overall, recovery by many overseas economies was continuously
weak.
Under these operating conditions, the companies continued working to achieve the ultimate goal of being the“World’s undisputed No.1 tire and rubber company both in name and reality”. In this way, we will be “Dan-Totsu”,
or the absolute and clear leader in all our industries and a company that is far outperforming its competitors.
Stepping up our efforts on a global scale, the Companies focused on increasing the sales of highly competitive
products, strengthening supply capacity of these products, improving manufacturing productivity, enhancing
technology and effectively utilizing our management resources. Moreover, with business conditions evolving at
unprecedented speed, the Companies were striving to rapidly implement a range of initiatives to enhance ourability to respond quickly to market trends, increase the sales of strategic products, construct and enhancebusiness models that will extend beyond the mere sale of products, and develop eco-friendly products andbusinesses.
As a result, net sales in the first half of fiscal 2013 were ¥1,705.1 billion, an increase of 15% from the first half offiscal 2012, operating income was ¥190.3 billion, an increase of 42%, ordinary income was ¥184.9 billion, an
increase of 43% and net income was ¥117.0 billion, an increase of 56%.

2

Bridgestone Corporation (5108)

First half results of fiscal 2013

2) Segment Information
FY 20131H

FY 2012

1H
Increase(Six months ended(Six months ended

June 30, 2013)

June 30, 2012)(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,447.7

1,237.5

210.1

17Operating income

173.2

119.6

53.5

45

Net Sales

264.4

260.4

3.9

2

Operating income

17.1

14.0

3.1

22

Net Sales
Tires
Diversified
Products
Consolidated
Results

Net Sales

1,705.1

1,488.9

216.2

15

190.3

133.7

56.6

42

Operating income

In the tires segment, the Companies worked to maximize sales momentum by introducing appealing new
products globally, enhancing strategic products and reinforcing fundamental competencies such as specification
optimization, and responding promptly to demand fluctuation in each region.
In Japan, the unit sales of replacement tires for passenger cars and light trucks increased firmly compared to thefirst half of fiscal 2012 as well as tires for truck and buses. However, due to a decline in the vehicle production
volume, the unit sales of tires for new vehicles decreased substantially. In the Americas, the unit sales of tires forpassenger and light truck in North America increased firmly compared to the first half of fiscal 2012, as well as tires
for trucks and buses. In Europe, the unit sales of tires for passenger cars and light trucks remained unchanged
compared to the first half of fiscal 2012. The unit sales of tires for trucks and buses increased strongly due to anincrease of the sales of replacement tires. In Asia Pacific, the unit sales of tires for passenger cars and light trucks
increased strongly compared to the first half of fiscal 2012. The unit sales of tires for trucks and buses increased
substantially compared to the first half of fiscal 2012. In China, the unit sales of tires for passenger cars and lighttrucks increased strongly, and the unit sales of tires for trucks and buses exceeded sales compared to the first halfof fiscal 2012. In the specialty tire business, the sales volume of off-the-road radial tires for construction and mining
vehicles increased firmly compared to the first half of fiscal 2012.
As a result, net sales and operating income in the tires segment in the first half of fiscal 2013 totaled ¥1,447.7
billion and ¥173.2 billion, an increase of 17% and an increase of 45% from the first half of fiscal 2012, respectively.
In the diversified products segment, net sales totaled ¥264.4 billion, an increase of 2% from the first half of fiscal
2012, and operating income was ¥17.1 billion, an increase of 22% from first half of fiscal 2012 due to an increasein 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)

First half results of fiscal 2013

(2) Qualitative Information on Consolidated Financial Position
Assets, Liabilities, and Net assets positions at the end of the first half of fiscal 2013 were as follows.

(Assets)
In assets, while cash and deposits decreased ¥27.1 billion, merchandise and finished products, tangible assets
and investments in securities each increased ¥48.0 billion, ¥105.7 billion and ¥57.2 billion respectively. As a result,assets increased ¥265.3 billion compared with the end of the previous fiscal year, to ¥3,305.0 billion.

(Liabilities)
In liabilities, while commercial paper decreased ¥40.4 billion, notes and accounts payable, long-term liabilities
and accrued pension and liability for retirement benefits each increased ¥24.7 billion, ¥11.3 billion and ¥23.4 billion
respectively. As a result, liabilities increased ¥30.4 billion compared with the end of the previous fiscal year, to¥1,652.8 billion.

(Net assets)
In net assets, while cash dividends paid were ¥12.5 billion, net income was ¥117.0 billion, net unrealized gain on
available-for-sale securities and foreign currency translation adjustments each increased ¥42.2 billion and ¥90.3
billion respectively. As a result, net assets increased ¥234.8 billion compared with the end of the previous fiscal
year, to ¥1,652.2 billion.
Consequently, the ratio of total equity to total assets increased 3.2% compared with the end of the previous
fiscal year, to 48.4%.

4

Bridgestone Corporation (5108)

First half results of fiscal 2013

(3) Qualitative Information on Projections of Consolidated Results
1) Comparison with fiscal 2012
The Companies' operating environment will continue to require careful attention due to such factors asfluctuations in exchange rates and the prices of raw materials and feedstock, an ongoing lack of clarity in the
global economic situation and international political conditions that remain unstable.
Amid such a challenging business environment, the Companies project the following results through theimplementation of Mid-Term Management Plan initiatives.
.
FY 2013 projections
FY 2013 Projections(Revised)

FY 2012 Results

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

3,590.0

3,039.7

550.2

18Operating income

400.0

285.9

114.0

40

Ordinary income

381.0

285.0

95.9

34

Net income

246.0

171.6

74.3

43

Net sales

Exchange
Rate

Yen

Yen

%

yen/dollar

95

80

19

yen/euro

124

103

-

20

2) Revision of the projections
Actual results of operating income, ordinary income, and net income for the first half of the fiscal year
ending December 31, 2013, exceeded the projections previously announced on February 18, 2013. This
increase was the result of the correction of the appreciated Japanese yen, the favorable price of raw material
and feedstock and initiatives to reduce expenses, while the unit sales of tires decreased from the originalplans due to the delay in the recovery of the world economy. Additionally, the company reviewed its
consolidated financial projections for the second half of the fiscal year ending December 31, 2013, which were
not updated on May 8, 2013, and revised its full-year consolidated financial projections for the fiscal year
ending December 31, 2013.

Forward-Looking Statements
The preceding descriptions of projections and plans are “forward-looking statements,” which involve known andunknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual performance andresults to differ substantially from management’s projections and plans, and the statement are not guarantees of
future business performance.

5

Bridgestone Corporation (5108)

First half results of fiscal 2013

2. Other Information (Notes)(1) Application of special accounting treatments for consolidated quarterly financial statements(Calculation for income tax expense)
Income tax expense was calculated based upon an estimated effective tax rate for fiscal 2013.

(2) Additional Information(Changes due to revisions of accounting policy, etc.)
Due to the application of IAS 19 “Employee Benefits” (revised in June 16, 2011) from January 1, 2013, themethod of recognition and presentation of actuarial gains and losses, past service cost and interest costchanged from the first quarter of fiscal 2013 in certain overseas subsidiaries.
Those overseas subsidiaries applied the revision in this policy retrospectively, and the consolidated
quarterly financial statements for the second quarter of the previous year and the consolidated financial
statements for the previous year changed due to the retrospective application. The effect of thisretrospective application on the consolidated quarterly financial statements for the second quarter of theprevious year and the consolidated financial statements for the previous year was immaterial.

(Changes in accounting policies which are difficult to distinguish from changes in accounting estimates)
From the first quarter of fiscal 2013, domestic companies changed the depreciation method for tangible
assets acquired on or after January 1, 2013 due to the revision of Corporation Tax Act in Japan. The effect of
this change on the consolidated statement is immaterial.

6

Bridgestone Corporation (5108)

First half results of fiscal 2013

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
FY 2012(As of December 31, 2012)

FY 2013 1H(As of June 30,2013)

AssetsCurrent Assets
Cash and deposits

226,162

198,987

Notes and accounts receivable

444,669

473,094

Short-term investments

124,010122,029

Merchandise and finished products

321,012369,070

Work in process

34,52436,757

Raw materials and supplies

165,188

164,027

Other

168,520

199,075

Allowance for doubtful accounts(8,074)(8,250)1,476,013

1,554,790

Buildings and structures, net

352,194

381,993

Machinery, equipment and vehicles, net

376,232

408,943

Other, net

390,509433,782

1,118,936

1,224,719

34,11839,366

Investments in securities

228,214285,425

Other

187,583

206,292

Allowance for doubtful accounts(5,067)(5,495)

Total investments and other assets

410,730

486,222

Total Fixed Assets

1,563,785

1,750,307

Total

3,039,798

3,305,098

Total Current Assets
Fixed Assets
Tangible assets

Total tangible assets
Intangible assets
Investments and other assets

7

Bridgestone Corporation (5108)

First half results of fiscal 2013

(Yen in millions)
FY 2012(As of December 31,2012)

FY 2013 1H(As of June 30,2013)

Liabilities
Current Liabilities
Notes and accounts payable

168,568

193,293

Short-term borrowings

182,821

170,302

Commercial paper

40,435－Current portion of bonds

60,972

8,105

864

886

Income taxes payable

55,82763,421

Accounts payable - other149,543

126,473

Other

231,072

250,296

Total Current Liabilities

890,105

812,780

Bonds

63,121110,000

Long-term borrowings

262,330

273,660

9,546

10,677

Accrued pension and liability for retirement
benefits

302,794326,225

Other

94,552

119,509

Total Long-term Liabilities

732,345

840,073

1,622,450

1,652,853

Common stock

126,354

126,354

Capital surplus

122,630

122,813

1,428,747

1,533,266

Treasury stock - at cost

(57,247)(56,804)

Total Shareholders’ equity

Lease obligations

Long-term Liabilities

Lease obligations

Total Liabilities

Net Assets
Shareholders' equity

Retained earnings

1,620,484

1,725,629

Accumulated other comprehensive
incomeNet unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative
instruments

133,439

175,699

(948)

(313)

Foreign currency translation adjustments(246,190)(155,889)(133,763)(146,747)(247,462)(127,251)

Stock acquisition rights

1,099

1,680

Minority Interests

43,22652,185

Total Net Assets

1,417,347

1,652,244

Total

3,039,798

3,305,098

Post retirement liability adjustments forforeign consolidated companies
Total accumulated other comprehensive
income8

Bridgestone Corporation (5108)

First half results of fiscal 2013

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

(Yen in millions)
FY 2012 1H(Six months ended
June 30, 2012)

FY 2013 1H(Six months ended
June 30, 2013)

1,488,970

1,705,190

Cost of Sales

990,245

1,101,491

Gross profit

498,725

603,699

Goods freightage expenses

62,591

72,071Advertising and promotion expenses

44,08553,761

Salaries, allowances and bonuses

95,897

109,523

Retirement benefit expenses

7,945

9,713

Depreciation

11,512

13,319Research and development expenses

41,09643,421

Other

101,810

111,488

Total selling, general andadministrative expenses

364,939

413,299

Operating income

133,785

190,399

Interest income

1,639

2,583

Dividend income

3,968

5,487

Other

9,479

9,419

Total non-operating income

15,087

17,489Interest expense

8,685

7,648

Foreign currency exchange loss

3,677

6,877

Other

7,528

8,396

Total non-operating expenses

19,891

22,921

Ordinary income

128,981

184,967

Gain on sales of fixed assets

－

3,073

Total extraordinary income

－

3,073

Impairment loss

11,613－

Loss on business withdrawal

2,903

－

Total extraordinary losses

14,516－

Income before income taxes andminority interests

114,464

188,040

Income taxes

35,69264,544

Income before minority interests

78,771

123,496

Minority interests

3,504

6,455

Net Income

75,266

117,041

Net Sales

Selling, General and Administrative Expenses

Non-operating Income

Non-operating Expenses

Extraordinary Income

Extraordinary Loss

9

Bridgestone Corporation (5108)

Consolidated Statement of Comprehensive Income
First Half

Income before minority interests

First half results of fiscal 2013

(Yen in millions)
FY 2012 1H(Six months ended
June 30, 2012)
78,771

FY 2013 1H(Six months ended
June 30, 2013)
123,496

Other comprehensive income
Unrealized gain on available-for-salesecurities

13,71542,253

Deferred gain on derivative instruments

258

635

Foreign currency translation adjustments

2,047

94,583

Post retirement liability adjustment forforeign companies

1,456(12,984)

616

540

18,093125,028

96,865248,524

Shareholders of Bridgestone Corporation

93,235237,252

Minority Interests

3,630

11,272

Share of other comprehensive income inaffiliates
Total other comprehensive income
Comprehensive income
Comprehensive income attribute to:10

Bridgestone Corporation (5108)

First half results of fiscal 2013

(3) Notes regarding going concern assumption

Not applicable(4) Notes regarding significant changes in the amount of shareholders’ equity

Not applicable(5) Segment Information
Information about Sales and Income (Loss) by reportable segment
FY 2012 First Half (Six months ended June 30, 2012)(Yen in millions)

Diversified

Adjustments

Tires

Total

Consolidated

Products(Note)Net sales:
External customers－

1,235,685

253,284

1,488,970

1,488,970

Inter-segment

1,839

7,211

9,051

(9,051)－

Total

1,237,525

260,496

1,498,022(9,051)

1,488,970

119,694

14,060133,75530

133,785

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

FY 2013 First Half (Six months ended June 30, 2013)(Yen in millions)

Diversified

Adjustments

Tires

Total

Consolidated

Products(Note)Net sales:
External customers－

1,446,231

258,959

1,705,190

1,705,190

Inter-segment

1,484

5,511

6,996

(6,996)－

Total

1,447,716

264,470

1,712,186(6,996)

1,705,190

173,212

17,168190,38118

190,399

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

11