Consolidated Financial Statements for the Fiscal Year Ended December 31, 2012

February 18, 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, Osaka, Nagoya, Fukuoka
Code number:5108
URL:http://www.bridgestone.co.jp
Representative: Masaaki Tsuya, CEO and Representative Board Member
Contact:
Satoshi Nakamura, Treasurer, General Manager
Telephone:+81-3-3563-6985
Scheduled date of annual shareholders’ meeting:March 26, 2013
Scheduled date of securities report submission:
March 26, 2013
Scheduled date of dividend payment commencement:
March 27, 2013
Supplementary information for the 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 Fiscal 2012(January 1, 2012 - December 31, 2012)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales
Fiscal 2012
Fiscal 2011

Operating income

Yen in millions%

3,039,738
3,024,355

Yen in millions

0.5
5.7

Net income
per share

Diluted net income
per shareYen(2) Consolidated Financial Position
Total assets
Yen in millions

Fiscal 2011
Fiscal 2012
Fiscal 2013
(Projection)

Ratio of total equity tototal assets

Yen

Yen

Yen

Yen

Yen

10.00
16.00

－
－

12.00
16.00

22.00
32.00

－

27.00

－

27.00

54.00

Yen

1,755.60
1,444.53

Cash and cash
equivalents at end ofyear

Yen in millions(237,928)(177,079)－－

Total equity per share

45.2
42.2

Net cash provided by(used in) financing
activities

Total

9.4
6.3

%

Yen in millions

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

%

10.0
6.7

¥1,374,039 million¥1,130,577 million

Yen in millions(55,351)(50,074)

269,416
128,840

Dividends
Pay-out
ratio(Consolidated)

Total
dividends
Yen in millions

Ratio ofdividends
to total equity(Consolidated)%

17,21825,045

%

66.7
4.1

Operating income
margin%Net assets

404,467
152,157

1stquarter
end

%

13.7
9.1
¥2,145 million¥1,611 million

Net cash used ininvesting activities

Yen in millions

Ordinary income/ Total assets

219.10131.50Fiscal 2012
Fiscal 2011

Yen in millions

2. Dividends%

285,04359.0
171,605
179,31721.2
102,970¥ 277,113 million (－%)¥
7,395 million (decrease of 90.3%)

Net return on Total
equity1,419,094
1,165,673
Fiscal 2012
Fiscal 2011

Net cash provided
by operating activities

Net income

Yen in millions

Yen in millions

3,039,251
2,677,344(3) Consolidated Cash Flows

Fiscal 2012
Fiscal 2011

49.5
14.9

Yen

Fiscal 2012
219.26
Fiscal 2011131.56(Reference) Equity in earnings of affiliates:

Fiscal 2012
Fiscal 2011
(Reference) Total equity%

285,995
191,321
Fiscal 2012
Fiscal 2011

(Reference) Comprehensive Income:Ordinary income

%

16.7
14.6

1.5
2.0

18.0

3. Consolidated Projected Results for Fiscal 2012 (January 1, 2013 - December 31, 2013)
Net salesFirst half year
Fiscal 2013

Yen in millions

1,690,000
3,550,000

%

13.5
16.8

(Percentage figures represent changes from the same period of previous year)
Net income
Operating income
Ordinary income
Net income
per share

Yen in millions

182,000
382,000

%

36.0
33.6

Yen in millions

170,000
365,000

%

31.8
28.1

Yen in millions

105,000
235,000

%

39.5
36.9

Yen

134.16300.26

* Notes(1) Changes in principal subsidiaries during fiscal 2012 : 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 policy, etc.
: No
2) Changes in 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 term end (including treasury stock):
December 31, 2012
813,102,321 shares
December 31, 2011
813,102,321 shares
2) Number of shares of treasury stock at term end
December 31, 2012
December 31, 2011

30,440,507 shares
30,441,046 shares

3) Average outstanding number of shares (during the fiscal year)
December 31, 2012
782,661,458 shares
December 31, 2011
782,662,118 shares(Reference) Summary of Non-consolidated Results(January 1, 2012 - December 31, 2012)(1) Non-consolidated Operating Results
Net sales
Fiscal 2012
Fiscal 2011

Operating income

Yen in millions%

939,399
971,255(3.3)
8.4

Net income
per share
Fiscal 2012
Fiscal 2011

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

139,264
56,435

Ordinary income
%

146.8
(3.5)

155,753
66,287

Net income
%

135.0
(1.7)

Yen in millions

91,96033,879%171.4(32.7)

Diluted net income
per share
Yen

Yen

117.5043.29

117.41
43.27(2) Non-consolidated Financial Position
Total assets
Fiscal 2012
Fiscal 2011
(Reference) Total equity

Yen in millions

Yen in millions

1,700,914
1,603,172

Net assets

Ratio of total equity tototal assets

Yen in millions

1,242,016
1,155,491
Fiscal 2012
Fiscal 2011

%

73.0
72.0

Total equity per share
Yen

1,585.50
1,475.37¥1,240,917 million¥1,154,720 million* Status of implementation of audit proceduresThis kessan tanshin document is outside the scope of audit procedures based on the Financial Instruments andExchange Act. As of the time of its disclosure, audit procedures with respect to the financial statements were in theprocess 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 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 statements are not guarantees of
future business performance. For further details, please see page 4, “Projections for fiscal 2013.”

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

[ 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 2012 and 2013…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. Consolidated Financial Statements…P11(1) Consolidated Balance Sheet…P11(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…P13

Consolidated Statements of Income…P13

Consolidated Statements of Comprehensive Income…P14(3) Consolidated Statements of Changes in Net Assets…P15(4) Consolidated Statements of Cash Flows…P17(5) Notes regarding going concern assumption…P19(6) Basic important matters for preparation of consolidated financial statements…P19(7) Changes in presentation…P22(8) Additional Information…P22(9) Notes to the consolidated financial statements…P23(Consolidated Balance Sheet)…P23(Consolidated Statements of Income)…P24(Consolidated Statements of Changes in Net Assets)…P26(Consolidated Statements of Cash Flows)…P28(Segment Information)…P29(Per share information)(Significant subsequent events)

…P31
…P32

5. Other…P33(1) Senior Management Changes

…P33

1

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

1. Operating Results
The Bridgestone Corporation is referred to as the “Company”, and the Company and its subsidiaries are referred
to as the “Companies”.
(1) Analysis of Operating Results[Operating results for fiscal 2012]
1) Sales and earnings
Fiscal 2012

Increase(Decrease)

Fiscal 2011

Yen in billions

Yen in billions

Yen in billions%

3,039.7

3,024.3

15.3

1

Operating income

285.9

191.3

94.6

49

Ordinary income

285.0

179.3

105.7

59

Net income

171.6

102.9

68.6

67

Net sales

In fiscal 2012(January 1 to December 31, 2012), the Companies’ operating environment was plagued by raw
materials and feedstocks prices remaining at high levels and the continuing strength of the Japanese yen. While
increased demand was brought on by re-building and rebounding sales of new vehicles following recovery fromGreat East Japan Earthquake, recovery of the domestic economy was stalling due to a slowdown in global
economic growth. The United States economy was still on the seesaw of recovery and recession, and thefinancial crisis had a negative impact on the European economy. Asian economic expansion showed signs of aslowdown, particularly in China and India.
Under these operating conditions, the companies will pursue 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 andclear 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, theCompanies were striving to rapidly implement a range of initiatives to enhance our ability to respond quickly tomarket trends, increase the sales of strategic products, construct and enhance business models that will extend
beyond the mere sale of products, and develop eco-friendly products and businesses.
As a result, net sales in fiscal 2012 was ¥3,039.7 billion, an increase of 1% from fiscal 2011, operating income
was ¥285.9 billon, an increase of 49%, ordinary income was ¥285.0 billion, an increase of 59% and net income
was ¥171.6 billion, an increase of 67%.

2

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

2) Segment Information
Fiscal 2012

Increase(Decrease)

Fiscal 2011

Yen in billions

Yen in billions

Yen in billions%

2,557.2

2,539.7

17.4

1

Operating income

260.4

185.4

75.0

40

Diversified
Products

Net Sales

499.0

500.5

(1.5)

-

Operating income

25.5

5.8

19.7

339

Consolidated
Results

Net Sales

3,039.7

3,024.3

15.3

1

285.9

191.3

94.6

49

Tires

Net Sales

Operating income

In the tire 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, unit sales of tires for passenger cars and light trucks grew firmly compared to fiscal 2011. Total unit
sales of tires for trucks and buses decreased due to a decline in sales of replacement tires. In the Americas, unit
sales of passenger and light truck tires in North America remained unchanged compared to fiscal 2011. Total unit
sales of tires for trucks and buses decreased 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 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 increased substantially compared to fiscal 2011. Total unit sales of tires for trucks and buses firmly
increased from fiscal 2011. In China, unit sales of passenger and light truck tires decreased, and unit sales of tires
for trucks and buses decreased substantially compared to fiscal 2011. In the specialty tire business, unit sales oflarge and ultralarge off-the-road radial tires for construction and mining vehicles increased steadily compared tothose of fiscal 2011 due to expansion of production capacity.
As a result, net sales and operating income in the tire segment during fiscal 2012 totaled ¥2,557.2 billion and¥260.4 billon, an increase of 1% and 40% from fiscal 2011, respectively.
In the diversified products segment, net sales totaled ¥499.0 billion, remaining unchanged from fiscal 2011. Dueto the increasing profit of domestic business and BSAM’s Diversified Products business, operating income was¥25.5 billion, an increase of 339% from fiscal 2011.

(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 2012

[Projections for fiscal 2013]
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 2013
projections

Net salesFirst half

Full-year

Exchangerate

Fiscal 2012

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,690.0

1,488.9

201.0

14Operating income

182.0

133.7

48.2

36

Ordinary income

170.0

128.9

41.0

32

Net income

105.0

75.2

29.7

40

Net sales

3,550.0

3,039.7

510.2

17Operating income

382.0

285.9

96.0

34

Ordinary income

365.0

285.0

79.9

28

Net income

235.0

171.6

63.3

37

First half
Full-year

Yen

Yen

yen/dollar

89

80

yen/euro

119103

yen/dollar

89

80

11

yen/euro

119

103

16

11
－

16

Forward-Looking Statements
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 performanceand results to differ substantially from management’s projections and plans, and the statement are notguarantees of future business performance.

4

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(2) Analysis of Financial Position
1) Cash flow
Fiscal 2012

Fiscal 2011

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions

Net cash provided by operating activities

404.4

152.1

252.3

Net cash used in investing activities(237.9)(177.0)(60.8)Net cash used in financing activities(55.3)(50.0)

(5.2)

29.3

(13.0)

42.4

140.5

(88.0)

228.6

At beginning of year

128.8

216.9

(88.0)At end of year

269.4

128.8

140.5

Effect of exchange rate changes
on cash and cash equivalents
Net increase (decrease)in cash and cash equivalents
Cash and cash
equivalents

The Companies’ cash and cash equivalents increased ¥140.5 billion during 2012, to ¥269.4 billion, comparedwith a decrease of ¥88.0 billion during the prior year.
(Cash flow by operating activities)
Net cash provided by operating activities increased ¥252.3 billion during 2012, compared with the prior year,to ¥404.4 billion. The principal contributors in that cash provided included income before income taxes andminority interests of ¥268.0 billion, compared with ¥158.7 billion during the prior year, depreciation andamortization of ¥155.0 billion, compared with ¥158.0 billion during the prior year. These contributors offset a
decrease in notes and accounts payable of ¥42.9 billion, compared with a net increase of ¥20.9 billion in theprior year, income taxes paid of ¥55.9 billion, compared with ¥31.5 billion in the prior year.
(Cash flow by investing activities)
Net cash used in investing activities increased ¥60.8 billion compared with the prior year, to ¥237.9 billion.
Expenditures included payments of ¥240.1 billion for purchase of tangible assets, compared with payments of¥187.8 billion during the prior year.
(Cash flow by financing activities)
Net cash used in financing activities decreased ¥5.2 billion compared with the prior year, to ¥55.3 billion. The
principal contributors in that cash used included net decrease in short-term borrowings of ¥35.9 billion,
compared with a net increase of ¥63.4 billion during the prior year, repayments for long-term borrowings of ¥52.0
billion, compared with ¥166.0 billion during the prior year, payments for redemption of bonds of ¥39.4 billion,
compared with ¥40.6 billion during the prior year, payments for cash dividends paid of ¥21.9 billion, comparedwith ¥15.6 billion during the prior year. These contributors offset proceeds from long-term borrowings of ¥68.7
billion, compared with ¥77.2 billion in the prior year, proceeds from issuance of bonds of ¥28.1 billion, comparedwith ¥35.4 billion in the prior year.

5Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

2) Trends in cash flow indicators
Fiscal 2010

Fiscal 2011

Fiscal 2012

Ratio of total equity to total assets (%)

42.2

42.2

45.2

Total equity ratio on market value basis (%)

45.4

51.0

57.3

Interest-bearing debt / cash flow ratio(years)

2.7

4.0

1.5

Interest coverage ratio(times)

12.7

8.8

24.2

(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 statementsof cash 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 2012 and 2013
Regarding the interests of shareholders as an important management priority, the Company follows a basic
policy of strengthening its management base in preparation for future business developments while working to
improve business results. The Company’s basic aim is to continue paying stable dividends and meet the
expectations of shareholders, in light of overall considerations of business results and financial position in the fiscal
period under review and in the future.
The Company 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 Company strives to strengthen the long-term stability of its management base by using retained
earnings to improve and expand production and sales systems and advance R&D activities in Japan andoverseas.
For the fiscal 2012, the Company plans to pay a cash dividend of ¥32 per share, comprising a year-end cash
dividend of ¥16 per share and an interim cash dividend of ¥16 per share.
For the fiscal 2013, the Company plans to pay a cash dividend of ¥54 per share, comprising a year-end cash
dividend of ¥27 per share and an interim cash dividend of ¥27 per share.

6

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart
AS OF DECEMBER 31, 2012
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 FIRESTONE VENEZOLANA, C.A.
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 ITALIA S.P.A.
BRIDGESTONE HISPANIA S.A.
THAI BRIDGESTONE CO., LTD.
BRIDGESTONE TIRE MANUFACTURING (THAILAND) CO., LTD.
P.T. BRIDGESTONE TIRE INDONESIABRIDGESTONE SOUTH AFRICA (PTY) LTD.
AND OTHERSBRIDGESTONE RETAIL JAPAN CO., LTD.
BRIDGESTONE RETAIL OPERATIONS, LLC
MORGAN TIRE & AUTO, LLC
BRIDGESTONE DEUTSCHLAND GMBH
BRIDGESTONE UK LTD.
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
BRIDGESTONE NATURAL RUBBER (THAILAND)
CO., LTD.
AND OTHERSBRIDGESTONE TIRE JAPAN CO., LTD.
BRIDGESTONE AMERICAS, INC.
BRIDGESTONE EUROPE NV/SA
BRIDGESTONE (CHINA) INVESTMENT CO., LTD.
BRIDGESTONE ASIA PACIFIC PTE. LTD.
BRIDGESTONE MIDDLE EAST & AFRICA FZE.

BRIDGESTONE CORPORATION

DIVERSIFIED PRODUCTSCHEMICAL AND INDUSTRIAL PRODUCTS

SPORTING GOODSBRIDGESTONE DIVERSIFIED CHEMICAL PRODUCTS CO., LTD.
BRIDGESTONE DIVERSIFIED PRODUCTS EAST CO., LTD.
BRIDGESTONE DIVERSIFIED PRODUCTS WEST CO., LTD.
AND OTHERSBRIDGESTONE SPORTS CO., LTD. AND OTHERSBICYCLESBRIDGESTONE CYCLE CO., LTD.

BSAM DIVERSIFIED PRODUCTS

AND OTHERSOTHERSFIRESTONE BUILDING PRODUCTS COMPANY, LLC
AND OTHERSBRIDGESTONE FINANCE CORPORATIONBRIDGESTONE FINANCE EUROPE B.V. AND OTHERS

All of the above-mentioned companies are our consolidated subsidiaries.
All of the above-mentioned companies are our consolidated subsidiaries.

* Transfer of overseas financial subsidiary
On January 1, 2013, BRIDGESTONE FINANCE EUROPE B.V. was transferred to BRIDGESTONE
TREASURY SINGAPORE PTE. LTD., which was established on July 2 2012, as an overseas financial
subsidiary.

7

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

3. Management Policies(1) Basic Management Policies
The Bridgestone Group adheres to a corporate philosophy, which consists of the mission of “serving society withsuperior quality” and the foundations “Seijitsu-Kyocho [Integrity and Teamwork]”, “Shinshu-Dokuso [Creative
Pioneering]”, “Genbutsu-Genba [Decision-Making Based on Verified, On-Site Observations]”, and“Jukuryo-Danko [Decisive Action after Thorough Planning]” in order to fulfill this mission. Based on that corporate
philosophy, the Group will pursue 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 aim to be “Dan-Totsu”, or the absolute and clear leader in all our
industries and a company that is far outperforming its competitors. Further, as a responsible global company,
Bridgestone will respect the social culture and values of the various countries in which it conducts businessactivities, comply with laws and statutory regulations, protect the global environment, and contribute to society.
(2) Management Strategies and Tasks

Seeking to be the “World’s undisputed No.1 tire and rubber company both in name and reality” as the ultimate
goal of the Group management, the Group will advance all business activities based on an awareness of its
corporate social responsibility. To that end, the Group will strive to realize the mission spelled out in its corporate
philosophy—“serving society with superior quality.” In addition, the Group will solidify its business footing in Japanand will rigorously proceed with Group and global business development on the strong foundation of its Japanesebusiness.
In accordance with this fundamental approach, we position the strategic business unit(SBU) organization and
the Mid-Term Management Plan as the foundation of management, and, striving to be a true global corporation
with management optimized on a Group-wide basis, we step-up the pace of management reforms and advance
operational development.
The Companies face rapid, major structural changes that can significantly affect earnings, including changes in
the composition of demand, new competition, and fluctuations in currency exchange rates and the prices of raw
materials and feedstocks. Against that backdrop, the Companies believe that it will be difficult to achieve sustained,
quality growth solely by pursing external growth in the scale of net sales and its overseas business. In addition,although there are signs of recovery in U.S. business conditions, there are also concerns about a serious
economic recession in Europe and about decelerating economic growth in emerging countries. The degree of
uncertainty and risk in the global economy has increased beyond previous levels.
To respond quickly to this uncertainty and risk, we will strengthen bottom-up proposal functions from the front
lines, communication intended to optimize Group and global operations, and teamwork for the full utilization ofGroup resources. In accordance with the Lean & Strategic approach, we will create new customer value throughboth technology innovation and business model innovation. In this way, we will strive to be “Dan-Totsu” of theindustry in all aspects of businesses.
In our MTP 2012, which was announced in October 2012, we have formulated five items as initiatives to be“Dan-Totsu”.
The first is expansion of strategic tire products and businesses. In passenger tires, including runflat tires, UHP
tires, and winter tires, we will incorporate the Group’s leading-edge technologies and take steps to aggressively
expand sales on a Group-wide basis. In the truck and bus tire segment, in order to meet the needs of customers
and society for environment-responsive, cost optimization, and safe operation, we will implement global
development of our solutions business utilizing retread technologies, targeting especially strong growth inemerging markets. In off-the-road radial tire market for construction and mining vehicles, we will promote new plant
project in North America and will build a new plant in Thailand as second overseas production site of off-the-roadradial tire. In this way, we will strengthen our system in order to respond rapidly and with flexibility to changes in theoperating environment.

8

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

The second initiative is focused on reinforcing fundamental competencies, specifically by leveraging optimized
specifications and reviewing cost for processing while enhancing safety and quality in order to bolster overall
supply chain competitiveness. In optimizing specifications, the fundamental task is to meet the quality
requirements demanded by the market. On that basis, we will focus on technical developments that also contributeto the environment, with a focus on achieving enhanced safety and reducing raw material consumption (halfweight). We will strive to maximize those effects through integrated activities that combine product development,
production technologies, and procurement/internal manufacturing. In reviewing cost for processing while
enhancing safety and quality, we will develop high-productivity technologies while maximizing the use of existingproduction capacity. This will allow us to establish an organizational system that contributes to improved global
profitability.
The third initiative is to make full use of vertical and horizontal expansion efficiencies. Through vertical expansion
in the upstream sectors of the supply chain, we will control tire quality and cost beginning at the raw material level.
In the downstream, we will expand the network of retail outlets to provide customers with optimal products andservices on a timely basis. In addition, we will advance initiatives that fully leverage our ability to rapidly respond tomarket needs. Moreover, through “horizontal expansion,” we will evaluate the roles of industrially developed
countries and emerging countries in sales and production, and invest management resources to maximize theircontribution to the Companies as a whole.
The fourth initiative is business planning based on the principles of selection and concentration in diversified
products business. Through further strengthening our global business, working to develop new business models
and leveraging technological strengths in such areas as rubber, adhesives, and reinforcement materials, we will
work to expand profits, mainly from anti-vibration rubber, belts, hoses, rubber crawlers, and seismic isolation
rubber businesses in chemical and industrial products operations. In addition, in BSAM's diversified products
business, we will reinforce the building products operations, centered on roofing products.
The fifth initiative involves environmental activities and eco-friendly products and businesses. In accordance withthe recently reissued and reinforced global Environmental Mission Statement, we have determined the long-term
direction of the Companies’ environmental activities. Moving forward, we will target the realization of threesocieties—an ecological conservation society, a resource conservation society, and a reduced CO 2 emissions
society. We have already established certain numerical objectives to support these three societies, such as targets
for CO2 emission reductions, taking into consideration such factors as the social and operating environments. By
incorporating these into plans for individual eco-friendly products and operations, we have a framework for theachievement of these goals.
The Group believes that in order to realize a basic system for implementing those strategies and measures, it
must optimize organizational systems on a Group and global basis and undertake a mid-term management planthat is consistent for the Group as a whole. Therefore, the Group will continue to strengthen those aspects of its
operations.
As an organizational systems initiative, the Group will gain an accurate understanding of market and customer
needs in regions worldwide. Based on that understanding, the Group will evolve and further increase theeffectiveness of the SBU system, which was introduced to reflect such needs optimally and rapidly on a Group andglobal basis. Further, in order to prevail and survive amid tough business conditions, it is critical for the Group to
exploit its wide-ranging and diverse management resources to the utmost and in accordance with consistenttargets and plans. To realize those objectives, the Group will revise the mid-term management plan on an annual
rolling basis, extending it by one year at a time. Those revisions will enable the Group to respond accurately andrapidly to dramatically fluctuating business conditions as it seeks to maintain earnings levels. In other words, theGroup will move forward vigorously to build a corporate organization that steadily increases profitability.
In addition, the Group will step up efforts to build systems that will enable the realization of its responsibilities as
a company toward all of its stakeholders. The Group will conduct regular yearly reviews of its policy for thedevelopment of internal control systems that ensure appropriate operations. Moreover, the Group will undertake
reviews of that policy as needed and steadily develop systems in accordance with the policy. For corporate

9Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

governance systems, the Group will take further steps to ensure that the Company’s decision making consistently
follows fair and transparent rules. Centering on the Integrated CSR Enhancement Committee, the Group’s
corporate social responsibility activities will establish systems and heighten the effectiveness of activities in allareas, including rigorous risk management for environmental protection, product safety, compliance and disasterprevention and safety initiatives; internal control improvement; employee education; and corporate citizenshipactivities.

10

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
Previous Year(As of December 31, 2011)

Current Year(As of December 31, 2012)

AssetsCurrent Assets
Cash and deposits

130,343

226,162

Notes and accounts receivable

438,764444,669

Short-term investments

90,133

124,010Merchandise and finished products

314,454

321,012Work in process

34,61434,524

Raw materials and supplies

171,411

165,188

Deferred tax assets

75,157

79,333

Other

76,94589,187

Allowance for doubtful accounts(8,109)(8,074)

Total Current Assets(Note2)

1,323,716(Note2)

1,476,013

Fixed Assets
Tangible assets
Buildings and structures, net

322,704

352,194

Machinery, equipment and vehicles, net

347,195

376,232Land

140,167

142,407

Construction in progress

120,506

185,128

Other, net

50,75762,973

Total tangible assets(Note1)Intangible assets

981,331(Note1)

27,943

1,118,936
34,118Investments and other assets
Investments in securities(Note3)

182,536(Note3)228,214Long-term loans receivable

6,402

6,604

Deferred tax assets

94,640110,274

Other

64,07370,157

Allowance for doubtful accounts(3,299)(5,067)

Total investments and other assets

344,353

410,183

Total Fixed Assets(Note2)

Total

1,353,628
2,677,344

11(Note2)

1,563,237
3,039,251

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(Yen in millions)
Previous Year(As of December 31, 2011)

Current Year(As of December 31, 2012)

Liabilities
Current Liabilities
Notes and accounts payable

196,742

168,568

Short-term borrowings

198,115

182,821Commercial paper

18,93340,435Current portion of bonds

13,17460,972754

864

Income taxes payable

22,85455,827

Deferred tax liabilities

1,612

1,580

Provision for sales returns

3,740

3,222

Accounts payable-other148,756

149,543

Accrued expenses

152,088

174,138

Other

40,95752,130Total Current Liabilities

797,730

890,105

Bonds

123,079

63,121Long-term borrowings

238,474

262,330

Lease obligations

10,061

9,546

Deferred tax liabilities
Accrued pension and liability for retirement
benefits
Warranty reserve

23,88230,769257,630

300,500

16,985

18,473

Provision for environmental remediation

4,516

3,969

Other

39,31041,341

Total Long-term Liabilities

713,940

730,052

1,511,671

1,620,157

Common stock

126,354

126,354

Capital surplus

122,629

122,630

1,279,9781,429,669(57,248)(57,247)

1,471,713

1,621,406

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

97,750133,439

(890)

(948)

Foreign currency translation adjustments(331,784)(246,139)

Post retirement liability adjustments for foreigncompanies(106,211)(133,718)

Total accumulated other comprehensive
incomeStock acquisition rights(341,135)(247,366)

770

1,099

Minority Interests

34,324

43,955

Total Net Assets

1,165,673

1,419,094

Total

2,677,344

3,039,251

Lease obligations

Long-term Liabilities

Total Liabilities
Net Assets
Shareholders' equity

Retained earnings
Treasury stock-at cost
Total Shareholders’ equity

12Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Previous Year
(Year ended December 31, 2011)(Yen in millions)

Current Year
(Year ended December 31, 2012)

Net Sales

3,024,355

3,039,738

Cost of Sales

2,091,718

2,017,237

Gross profit

932,637

1,022,500

Goods freightage expenses

132,840

125,005

Advertising and promotion expenses

90,83390,597

Salaries, allowances and bonuses

186,142

191,652

Retirement benefit expenses

14,476

16,478Selling, General and Administrative Expenses

Depreciation
Research and development expenses

22,847(Note1)

83,981

24,052(Note1)82,801

Other

210,194

205,916

Total selling, general and administrative expenses

741,315

736,505

Operating income

191,321285,995

Interest income

4,125

3,502

Dividend income

4,299

5,389

－

722

Other

14,90915,688

Total non-operating income

23,33425,301

Interest expense

16,71016,462Foreign currency exchange loss

2,145

－

Other

16,483

9,790

Total non-operating expenses

35,33826,253

Ordinary income

179,317

285,043

Non-operating Income

Foreign currency exchange gains

Non-operating Expenses

Extraordinary Income
Gain on sales of tangible assets(Note2)Gain on sales of investment securities
Total extraordinary income

7,295(Note2)

3,010

－

4,054

7,295

7,065

Extraordinary Loss
Impairment loss

(Note3)13,086

Loss on disaster(Note4)

2,426

－

－

4,117

Loss on disposals of tangible assets

4,212

3,011

Loss on valuation of investments in securities

3,486

－

Dismantlement expenses

Loss on business withdrawal
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss related to US antitrust law and US Foreign
Corrupt Practices Act
Total extraordinary loss－

(Note3)(Note5)

14,024

2,903

2,471

－

2,149

－

27,83324,057

Income before income taxes and minority interests

158,779

268,051

Income taxes - current

45,93786,481(Note6)

Income taxes - deferred

5,125

2,253

Total income taxes

51,06388,735

Income before minority interests

107,716

179,316

4,746

7,710

102,970

171,605

Minority Interests
Net Income

13Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

Consolidated Statements of Comprehensive Income(Yen in millions)

Previous Year
(Year ended December 31, 2011)
Income before minority interests

Current Year
(Year ended December 31, 2012)

107,716

179,316(14,318)

35,687(695)－(57,780)

88,097

Post retirement liability adjustment forforeign companies
Share of other comprehensive income inaffiliates(25,138)(27,506)(2,387)

1,519

Total other comprehensive income(100,320)

97,796

7,395

277,113

Shareholders of Bridgestone Corporation

5,099

265,374

Minority Interests

2,296

11,738Other comprehensive income
Unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivative
instruments
Foreign currency translation adjustments

Comprehensive income
Comprehensive income attribute to:14

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(3) Consolidated Statements of Changes in Net Assets(Yen in millions)

Previous Year
(Year ended December 31, 2011)

Current Year
(Year ended December 31, 2012)

Shareholders’ equity
Common stock
Ending Balance of the previous year

126,354

126,354－－

126,354

126,354

122,629

122,629

Disposition of treasury stock00

Total changes in the year00122,629

122,630

1,111,588

1,279,97881,073－

Cash dividends(15,653)(21,914)

Net income

102,970

171,605

Total changes in the year

87,316

149,691

1,279,9781,429,669(57,245)(57,248)

Purchase of treasury stock

(3)

(10)

Disposition of treasury stock

0

12

Total changes in the year(3)

1

(57,248)(57,247)

1,303,326

1,471,713

81,073－

Cash dividends(15,653)(21,914)

Net income

102,970

171,605

Purchase of treasury stock

(3)

(10)

Disposition of treasury stock0

1287,313

149,692

1,471,713

1,621,406

Changes in the year
Total changes in the year
Ending Balance
Capital surplus
Ending Balance of the previous year
Changes in the year

Ending Balance
Retained earnings
Ending Balance of the previous year
Reclassification of post retirement liability
adjustments for foreign companies
Changes in the year

Ending Balance
Treasury stock-at costEnding Balance of the previous year
Changes in the year

Ending Balance
Total shareholders’ equity
Ending Balance of the previous year
Reclassification of post retirement liability
adjustments for foreign companies
Changes in the year

Total changes in the year
Ending Balance

15

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(Yen in millions)
Previous Year
(Year ended December 31, 2011)

Current Year
(Year ended December 31, 2012)

Accumulated other comprehensive income
Net unrealized gain(loss) on available- for-salesecurities
Ending Balance of the previous year

112,064

97,750Net Change in the year

(14,313)

35,688

Total changes in the year

(14,313)

35,68897,750133,439

(235)

(890)

Net Change in the year

(654)

(57)

Total changes in the year

(654)

(57)

(890)

(948)

(274,026)(331,784)

Net Change in the year

(57,758)

85,644

Total changes in the year

(57,758)

85,644(331,784)(246,139)－(106,211)(81,073)－

Net Change in the year

(25,138)(27,506)

Total changes in the year

(25,138)(27,506)(106,211)(133,718)

514

770

Net Change in the year

255

328

Total changes in the year

255

328

770

1,099

34,50334,324

Net Change in the year

(178)

9,630

Total changes in the year

(178)

9,630

34,324

43,955

Changes in the year

Ending Balance
Deferred gain(loss) on derivative
instruments
Ending Balance of the previous year
Changes in the year

Ending Balance
Foreign currency translation adjustments
Ending Balance of the previous year
Changes in the year

Ending Balance
Post retirement liability adjustments forforeign companies
Ending Balance of the previous year
Reclassification of post retirement liability
for foreign companies
Changes in the year

Ending Balance
Stock acquisition rights
Ending Balance of the previous year
Changes in the year

Ending Balance
Minority Interests
Ending Balance of the previous year
Changes in the year

Ending Balance

16

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(4) Consolidated Statements of Cash Flows(Yen in millions)
Previous Year
(Year ended December 31, 2011)

Current Year
(Year ended December 31, 2012)

Cash Flows from Operating Activities
Income before income taxes and minority interests

158,779

268,051

Depreciation and amortization

158,044

155,065

1,621

1,445

Increase(decrease) in accrued pension andliability for retirement benefits(17,949)(3,796)

Interest and dividend income(8,424)(8,891)

Interest expense

16,71016,462Gain on sales of tangible assets(7,295)(3,010)－(4,054)13,086

14,024

－

4,117

4,212

3,011

－

2,903

2,426

－

3,486

－

2,471

－

2,149

－

(35,281)

43,792(122,890)

47,596

Increase(decrease) in notes and accounts payable

20,912(42,986)

Other

2,638

(25,551)

Subtotal

194,698

468,180

8,540

8,943

Interest paid

(17,358)(16,701)

Payment related to US antitrust law and US
Foreign Corrupt Practices Act(2,149)－

Income taxes paid

(31,573)(55,955)

Net Cash Provided by Operating Activities

152,157

404,467

Payments for purchase of tangible assets(187,853)(240,144)

Proceeds from sales of tangible assets

12,239

11,178Purchase of intangible assets(857)(4,845)

Proceeds from investments in securities

3,023

4,822

Payments of loans receivable(519)(1,271)

Proceeds from collection of loans
receivable

1,514

1,070

Other

(4,625)(8,738)(177,079)(237,928)

Amortization of goodwill

Gain on sales of investment securities
Impairment loss
Dismantlement expenses
Loss on disposals of tangible assets
Loss on business withdrawal
Loss on disaster
Loss(gain) on valuation of investments insecurities
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss related to US antitrust law and US Foreign
Corrupt Practices Act
Decrease(increase) in notes and accounts
receivable
Decrease(increase) in inventories

Interest and dividends received

Cash Flows from Investing Activities

Net Cash Used in Investing Activities

17

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(Yen in millions)
Previous Year
(Year ended December 31, 2011)

Current Year
(Year ended December 31, 2012)

Cash Flows from Financing Activities
Net increase(decrease) in short-term borrowings

63,400(35,918)

Proceeds from long-term borrowings

77,26568,785

Repayments of long-term borrowings(166,003)(52,068)

Proceeds from issuance of bonds

35,46328,183

Payments for redemption of bonds(40,618)(39,465)

Cash dividends paid

(15,656)(21,912)

Cash dividends paid to minority(2,382)(2,116)

Other(1,543)(839)

Net Cash Provided by(used in) Financing Activities(50,074)(55,351)(13,086)

29,388(88,084)

140,576

216,924

128,840

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
Cash and Cash Equivalents at End of Year

(Note1)

18

128,840(Note1)

269,416

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012(5) Notes regarding going concern assumption
Not applicable(6) Basic important matters for preparation of consolidated financial statements
1. Scope of consolidation
1) Number of consolidated subsidiaries: 316 companies
Names of principal companies:
Refer to “2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart”
Changes in scope of consolidation:
Additions: 6 companies (Mainly, increased by establishment)
Deletions: 22 companies (Mainly, decreased by liquidation)2) There are no non-consolidated subsidiaries
2. Scope of application of equity-method accounting
1) Number of equity-method affiliates: 148 companies
Main equity-method affiliate
BRISA BRIDGESTONE SABANCI LASTIK SANAYI VE TICARET A.S.
Changes in the scope of equity-method accounting
Deletions: 4 companies (Mainly, decreased by liquidation)2) There are no non-consolidated subsidiaries or affiliates to which equity-method accounting is not applied.
3. Fiscal year of consolidated subsidiaries
Consolidated subsidiary BRIDGESTONE INDIA AUTOMOTIVE PRODUCTS PRIVATE LIMITED ends its
fiscal year on March 31. Consolidated results are adjusted as necessary to reflect important transactions
taking place between the respective fiscal year-ends of subsidiaries and the fiscal year-end of the BridgestoneGroup.
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 their entirety under net assets, and themoving average method 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.
3) Valuation policies and methods for inventories
Inventories are substantially 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 assets, the declining-balance method is used at BRIDGESTNE CORPORATION (the“Company”) and its domestic subsidiaries, and the straight-line method is used at overseas subsidiaries.
For intangible 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 nonrepayment 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 nonrepayment, an amount based on the evaluation of potential loss in the receivables
outstanding is recorded.

19

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012b) Provision for sales returns
Principally, in order to provide for future losses on the return of snow tires, historical losses are used
to estimate the amount of future, and that amount is recorded.
c) Accrued pension and liability for retirement benefits
In order to reserve for retirement benefits for employees, an amount based on the estimated amountof projected benefit obligations and pension plan assets as of the fiscal year end is recorded.
Prior service cost is treated as an expense using the straight-line method over a fixed number ofyears based on the average remaining years of service of the employees in the year in which the priorservice costs occur (10 years for domestic companies, 3 to 12 years for overseas companies).
Actuarial gain/loss at the Company and its domestic companies 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 year.
For certain of its overseas companies, 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.
In addition, at certain consolidated subsidiaries in the Americas, an estimated total amount ofexpenses for post-retirement benefits in addition to pensions is allotted based on the number of yearsof service provided by the employees.
At certain overseas companies, unrecognized amounts of actuarial gain/loss not yet treated as
expenses are recorded as “Post retirement liability adjustments for foreign companies” underaccumulated other comprehensive income on the balance sheet.
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 Company and its subsidiaries (collectively,
the “Companies”).
e) Provision for environmental remediation
In order to reserve for outlays for legally required removal and disposal of asbestos, etc., an
estimated amount of future obligations is recorded.
6) Accounting policies for the conversion of foreign currency-denominated assets and liabilities into yen
Short-term and long-term monetary receivables and payables denominated in foreign currencies aretranslated into Japanese yen at the exchange rate at the balance sheet date. The foreign currency
exchange gain and loss from translation are recognized in income.
The balance sheet accounts of the Company’s overseas subsidiaries are translated into Japanese yenat the current exchange rate at the balance sheet date except for equity, which is translated at thehistorical rate. Differences arising from such translation are shown as foreign currency translation
adjustments and minority interests in a separate component of equity. Revenue and expense accounts of
the Company’s overseas subsidiaries are translated into Japanese yen at the average annual exchange
rate.

20

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

7) Hedge accountinga) Hedge accounting method
Deferred hedge accounting is applied. Designation accounting is used for forward foreign exchange
and foreign exchange 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
Forward foreign exchange contracts

Foreign exchange swaps
Interest rate swaps
Commodity swaps

Items covered
Foreign currency-denominated monetaryclaims and obligations, and scheduledforeign currency-denominated transactions
Borrowings and corporate bonds
Borrowings
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 tenor 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.
d) Method for evaluating the validity 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.
8) Amortization of goodwill
Goodwill is amortized using the straight-line method over the period for which it is deemed to haveeffect, but not to exceed 20 years.
9) Definition of cash and cash equivalents for Consolidated Statements 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 isdeemed negligible.
10) 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 2012

(7) Changes in presentation
1. Consolidated Statements of Cash Flows
1) "Amortization of goodwill""Amortization of goodwill" which was included in "depreciation and amortization" in the previous fiscal year, isdisclosed separately from the current fiscal year. To reflect this change in method of presentation, theconsolidated financial statements for the previous fiscal year have been restated.
As a result, the ¥159,666 million in "depreciation and amortization" that had been included in the
consolidated statement of cash flows for the previous fiscal year has now been restated as "amortization of
goodwill" of ¥1,621 million and "depreciation and amortization" of ¥158,044 million.
2) “Foreign currency exchange losses (gains)”
In the Cash Flows from Operating Activities section, "Foreign currency exchange losses (gains)" were
presented separately in the previous fiscal year. Due to a decline in financial materiality, "Foreign currency
exchange losses (gains)" are now presented in "Other." To reflect this change 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 ¥4,818 million that had previously beenpresented as "Foreign currency exchange loss (gain)" in the Consolidated Statement of Cash Flows for theprevious fiscal year is now included in "Other".
3) "Payments for purchases of intangible assets" and "Payments of loans receivable"
In the Cash Flows from Investing Activities section, "Payments for purchases of intangible assets" and"Payments of loans receivable" were included in "Other" in the previous fiscal year. Due to an increase infinancial materiality, "Payments for purchases of intangible assets" and "Payments of loans receivable" arenow presented separately. To reflect this change in method of presentation, the consolidated financial
statements for the previous fiscal year have been reclassified.
As a result, in the Cash Flows from Investing Activities section, the ¥(857) million in "Payments forpurchases of intangible assets" and the ¥(519) million in "Payments of loans receivable" that had previously
been included in "Other" are now presented separately.
4) "Repayments of obligations under finance leases"
In the Cash Flows from Financing Activities section, "Repayments of obligations under finance leases" were
presented separately in the previous fiscal year. Due to a decline in financial materiality, "Repayments ofobligations under finance leases" are now included "Other." To reflect this change 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 ¥(1,540) that had previously beenpresented as "Repayments of obligations under finance leases" in the Consolidated Statement of Cash Flowsfor the previous fiscal year is now included in "Other".
(8) 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 current fiscal year, thecompanies 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).

22

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012(9) Notes to the consolidated financial statements(Consolidated Balance Sheet)
Note 1 Accumulated depreciation of tangible asset
Previous Year(As of December 31, 2011)¥1,867,601 million

Current Year(As of December 31, 2012)¥2,030,296 million

Note 2 Assets pledged as collateralPrevious Year(As of December 31, 2011)¥9,086 million

Current Year(As of December 31, 2012)¥18,144 million

Obligations corresponding to the preceding
Previous Year(As of December 31, 2011)
Short-term bank borrowings
Long-term bank borrowings¥1,306 million¥189

Note 3 Assets or liabilities related to non-consolidated subsidiaries and affiliates
Previous Year(As of December 31, 2011)
Investments in securities¥12,284 million

Current Year(As of December 31, 2012)¥1,064 million¥4,484Current Year(As of December 31, 2012)¥14,816 million

Note 4 Guarantees
Previous Year(As of December 31, 2011)
Guarantees on employees’ bank borrowings¥147 million

Current Year(As of December 31, 2012)¥10 million

Note 5 Balance of trade notes discounted
Previous Year(As of December 31, 2011)¥1,859 million

23

Current Year(As of December 31, 2012)¥1,379 million

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(Consolidated Statements of Income)Note 1

Research and development expenses

General and administrative expenses

Note 2Previous Year
(Year ended December 31, 2011)¥83,981 million

Current Year
(Year ended December 31, 2012)¥82,801 million

Gain on sales of tangible assets

Previous Year (Year ended December 31, 2011)
Gain on sales of tangible assets mainly consists of gain on sales of land.
Current Year (Year ended December 31, 2012)
Gain on sales of tangible assets mainly consists of gain on sales of land.

Note 3

Impairment loss

Previous Year (Year ended December 31, 2011)
The Companies group their operating assets in accordance with the classifications used for internalmanagement. Disposal assets (assets that the Companies plan to dispose of through scrapping or sale) and idle
assets are grouped on an individual basis.
In the period under review, for operating assets for which profitability has declined, disposal assets throughplanned scrapping or sale, and idle assets that are not expected to be used in the future, the carrying amounts
were reduced to the recoverable amounts, and the amounts of these reductions were recorded under
extraordinary loss as impairment loss of ¥13,086 million. That total included ¥5,618 million for buildings andstructures, ¥3,056 million for machinery, equipment and vehicles, ¥2,669 million for land, and ¥1,741million forothers.
USE

Classification

Location

Amount(Yen in millions)Operatingbuildings and structures, machinery, equipment

assetsand vehicles etc.

Disposal assets

buildings and structures, land etc.

Japan

1,381

Japan,

10,979North America etc.
Idle assets

buildings and structures, machinery, equipment

Japan

725

and vehicles etc.
The recoverable amount of operating assets is measured by value in use, which is calculated by discounting
future cash flows at a discount rate of 7.5%. The recoverable amounts of disposal assets and idle assets aremeasured 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.

24

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

Current Year (Year ended December 31, 2012)
The Companies group their operating assets in accordance with the classifications used for internalmanagement. Disposal assets (assets that the Companies plan to dispose of through scrapping or sale) and idle
assets are grouped on an individual basis.
In the period under review, for operating assets for which profitability has declined, disposal assets throughplanned scrapping or sale, and idle assets that are not expected to be used in the future, the carrying amounts
were reduced to the recoverable amounts, and the amounts of these reductions were recorded under
extraordinary loss as impairment loss of ¥14,024 million. That total included ¥4,260 million for machinery,equipment and vehicles, ¥3,430 million for buildings and structures and ¥6,333 million for others.
USE

Classification

Location

Amount(Yen in millions)Operatingmachinery, equipment and vehicles, buildings

Japan,

4,653

assetsand structures etc.

North America etc.

Disposal assets

machinery, equipment and vehicles, buildings

Japan

6,066

Japan etc.

3,305

and structures etc.
Idle assets

machinery, equipment and vehicles etc.

The recoverable amount of operating assets is measured by value in use, which is calculated by discounting
future cash flows at a discount rate of 4.3 to 7.5%. The recoverable amounts of disposal assets and idle assets
are measured at the net selling price. Assets to be scrapped are evaluated at memorandum value, and assets tobe sold and idle assets are evaluated at the estimated selling price.

Note 4

Loss on disaster

Previous Year (Year ended December 31, 2011)
Loss on disaster consists of restoration expenses for tangible assets, and scrapping expenses for inventories
as a result of the Great East Japan Earthquake, which occurred on March 11, 2011.

Note 5 Loss on business withdrawal
Current Year (Year ended December 31, 2012)
As a result of the decision to withdraw from the electronic paper business, related expenses have beenrecorded.

Note 6

Loss related to US antitrust law and US Foreign Corrupt Practices Act

Previous Year (Year ended December 31, 2011)
The Company has recorded the expense in connection with guilty to an antitrust conspiracy and a conspiracy toviolate the Foreign Corrupt Practices Act regarding the sale of marine hoses, as a result of the finalized penalty
by the U.S. Department of Justice.

25

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(Consolidated Statements of Changes in Net Assets)
Previous Year（Year ended 31 December 2011)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2010
Number of shares issued
Common stock(Thousands of shares)

As of
December 31,
2011

813,102－－

813,10230,4392

030,441

Treasury stock

Common stock(Thousands of shares)(see note 1)

Note 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. Stock acquisition rights

Details

Type of shares
to be used asstockacquisitionrightsStockacquisitionrights as
stock
options

－

－

－

－

－

770

－

－

－

－

－

770

Resolution

Type

Total dividends(yen in millions)

Annual Shareholders’Meeting, March 29,
2011

Common StockBoard of Directors,
August 8, 2011

Common Stock

Filingcompany

Total

Number of shares to be used for Stock acquisition rights
As ofDecember31, 2010

Increase

As ofDecember31, 2011

Decrease

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

3. Dividends(1) Dividend payments
Dividend per
share

Record date

Effective date

7,826

¥10

December 31,
2010

March 30,
2011

7,826

¥10

June 30,2011

September 1,
2011(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 27,
2012

Common
Stock

9,391

Retainedearnings

26¥12

December 31,
2011

March 28,2012

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

Current Year（Year ended 31 December 2012)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2011
Number of shares issued
Common stock(Thousands of shares)

As of
December 31,
2012

813,102－－

813,10230,4415

630,440Treasury stock

Common stock(Thousands of shares)(see notes 1 & 2 )Notes 1: The increase of treasury stock consists of the purchase of 5 thousand shares according to the requests fromthe shareholders who have odd-lot shares.
2: The decrease of treasury stock consists of 6 thousand shares used for the exercise of stock options and other.

2. Stock acquisition rights

Details

Type of shares
to be used asstockacquisitionrightsStockacquisitionrights as
stock
options

－

－

－

－

－

1,099

－

－

－

－

－

1,099

Resolution

Type

Total dividends(yen in millions)

Annual Shareholders’Meeting, March 27,
2012

Common StockBoard of Directors,
August 7, 2012

Common Stock

Filingcompany

Total

Number of shares to be used for Stock acquisition rights
As ofDecember31, 2011

Increase

As ofDecember31, 2012

Decrease

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

3. Dividends(1) Dividend payments
Dividend per
share

Record date

Effective date

9,391

¥12

December 31,
2011

March 28,
2012

12,522¥16

June 30,2012

September 3,
2012(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 26,
2013

CommonStock12,522Retainedearnings

27¥16

December 31,
2012

March 27,2013

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(Consolidated Statements of Cash Flows)
Note 1

Relationship between cash and cash equivalents at fiscal year end and amount shown inConsolidated Balance Sheet(Yen in millions)
Previous Year
(Year ended December 31, 2011)

Current Year
(Year ended December 31, 2012)(As of December 31, 2011)
130,343
90,133
220,476(As of December 31, 2012)
226,162
124,010350,172

Time deposits, bonds, etc. withterms of more than three months(91,636)(80,756)

Cash and cash equivalents

128,840

269,416

Cash and deposits
Short-term investments
Total

28

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(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 for third-party transactions.
3. Information regarding Sales and Income (Loss), assets and other items by reporting segment
Consolidated Results for Fiscal 2011(January 1, 2011 - December 31, 2011)
Diversified
Products

Tires(Yen in millions)

Adjustments(notes)

Total

Consolidated

Net sales:
External customers

2,536,730

487,625

3,024,355

Inter-segment

3,054

12,945

15,999(15,999)－

Total

2,539,785

500,5703,040,355(15,999)

3,024,355

185,475

5,812

191,28733

191,3212,295,946

384,216

2,680,163(2,819)2,677,344

136,336

21,708158,044－

158,044

Amortization of goodwill

1,501

120

1,621

－

1,621

Investment for
equity-method affiliates

11,988299

12,287(2)

12,284

Increase in tangible andintangible fixed assets

174,778

26,789201,568－

201,568

Segment income(Operating income)Segment assets

3,024,355－

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.

29

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

Consolidated Results for Fiscal 2012(January 1, 2012 - December 31, 2012)
Diversified
Products

Tires(Yen in millions)
Adjustments(notes)

Total

Consolidated

Net sales:
External customers

2,554,126

485,6113,039,738

Inter-segment

3,089

13,455

16,545(16,545)－

Total

2,557,216

499,067

3,056,283(16,545)3,039,738

260,488

25,514

286,003(7)

285,995

2,672,318

368,872

3,041,191(1,939)3,039,251

136,513

18,552

155,065－

155,065

Amortization of goodwill

960

484

1,445

－

1,445

Investment for
equity-method affiliates

14,613207

14,820(4)

14,816

Increase in tangible andintangible fixed assets

223,672

22,459246,131－

246,131

Segment income(Operating income)Segment assets

3,039,738－

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 2012

(Per share information)(Yen)
Previous Year
(Year ended December 31, 2011)

Current Year
(Year ended December 31, 2012)

Total equity per share

1,444.53

1,755.60

Net income per share

131.56219.26

Diluted net income per share

131.50219.10

Items

Note:

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

Previous Year
(Year ended December 31, 2011)
Net income per share

Current Year
(Year ended December 31, 2012)(Yen in millions)(Yen in millions)

102,970

171,605－－

102,970

171,605

Average number of shares heldby common shareholders
during term
Diluted net income per share(Thousands of shares)
782,662(Thousands of shares)
782,661(Thousands of shares)(Thousands of shares)

Net income adjustments
Increase of common stock(stock option portion include in
the above)

－
382
(382)

－
583
(583)

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2004
Common Stock225

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2005
Common Stock
252

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2005
Common Stock
252

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2006
Common Stock280

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2006
Common Stock280

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 29, 2007
Common Stock260

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 29, 2007
Common Stock260

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 27, 2008
Common Stock230

Net Income
Amount not belonging tocommon shareholders
Net income corresponding tocommon shareholders

Summary of residual shares withno dilution effect and therefore
not included in calculation ofdiluted net income per share

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting and the board of
directors, March 27, 2008
Common Stock234

31

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

(Significant subsequent events)
Not applicable32

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2012

5. Other(1) Senior Management Changes
Tokyo (February 18, 2013) - Bridgestone Corporation announced that its board of directors has approved
the following proposals of the changes in members of the board of directors and corporate officers today.

1) Retiring Member of the Board of Directors

Plan after retirement in parentheses(Effective March 26, 2013)
Chairman of the Board

Shoshi Arakawa

2) Reappointed Members of the Board of Directors〔Advisor〕

Occupation in parentheses(Subject to approval at the Company’s annual Shareholders' Meeting and subsequent Board of Directors meeting on
March 26, 2013)CEO and Representative Board Member
Concurrently Chairman of the Board

Masaaki Tsuya〔CEO and Representative Board
Member〕

COO and Representative Board Member
Concurrently responsible for Diversified
Products, Sports and Cycle Business

Kazuhisa Nishigai〔COO and Representative Board
MemberConcurrently responsible for Diversified
Products, Sports and Cycle Business〕

Senior Vice President
Member of the Board
Chief Technology Officer
Responsible for Technology;
Concurrently responsible for CSR and
Quality Management

Yoshiyuki Morimoto〔Senior Vice President
Member of the Board
Chief Technology Officer
Responsible for Technology;
Concurrently responsible for CSR and
Quality Management〕

Senior Vice President
Member of the Board
Responsible for International Tire
Business Operations

Narumi Zaitsu〔Senior Vice President
Member of the Board
Responsible for International Tire
Business Operations〕

Member of the Board

Sakie Tachibana
Fukushima〔Member of the Board〕

Member of the Board

Takao Enkawa〔Member of the Board〕

Member of the Board

Kimiko Murofushi〔Member of the Board〕

Member of the Board

Scott Trevor Davis〔Member of the Board〕* Ms. Sakie Tachibana Fukushima, Mr. Takao Enkawa, Ms. Kimiko Murofushi and Mr. Scott Trevor Davisare candidates for outside directors as set forth in Article 2-15 of the Corporate Law of Japan.

33

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20123) New Members of Corporate Officers

Current positions and responsibilities
in parentheses(Effective March 26, 2013)
Vice President and Officer
Seconded to Bridgestone Americas, Inc.

Michihiro Suzuki〔Director
International Tire Administration
Division;
Concurrently General Manager,
International Tire Administration
Department;
Concurrently Assistant to Vice President
and Officer, Innovation〕

Vice President and Officer
Tire Products Development

Yoshihiko Ichikawa〔Director
Seconded to Bridgestone TechnicalCenter Europe S.p.A.〕

4) Retiring Corporate Officers

Plan after retirement in parenthesis(Effective March 26, 2013)
Vice President and Officer
Assistant to Vice President and Officer,
Group Global Marketing Strategy
New Business and Product Models
Development

Kiyoshi Nomura〔Advisor〕

Vice President and Officer
Seconded to Bridgestone Logistics Co.,
Ltd.
Chairman and CEO of Bridgestone
Logistics Co., Ltd.

Yoshiharu Inoue〔Chairman and CEO of Bridgestone
Logistics Co., Ltd.〕

34