Financial Resultsfor First Half of Fiscal 2011

Bridgestone Corporation
August 8, 2011

Contents*Business and Financial Performancefor First Half of Fiscal 2011
*Consolidated Projections for Fiscal 2011
*Appendix

Copyright © 2011 Bridgestone Corporation2Business and Financial Performancefor First Half of Fiscal 2011

Business Environment Surrounding Bridgestone Group
Estimated Tire Demand
Global demand is estimated to increase due torapid growth in emerging countries.
Replacement tire demand of developedcountries is growing steadily.
Tire Demand for 2011 1st Half (VS 2010 1st Half)

Currency Exchange2010
1st Half2010
2nd Half2011
1st Half

USDollar

91 Yen84 Yen82 YenEuro

121 Yen112 Yen115 Yen

Yen appreciated against both the dollar and the euroin comparison with 2010. Inclusive of all other currencies,
the currency exchange gain/loss is approximately thesame as it is initially planned.
%

Raw Materials
Market trends of natural rubber and crude oil*Source : Current Prices for Singapore Commodity Exchange Limited(Average)

Natural Rubber<RSS#3>*(￠/kg)
Crude Oil
<WTI>(＄/ｂｂl)*The numbers of demand are estimated by Bridgestone Corporation2010
1st Half

2010
2nd Half

2011
1st Half347385549788198

Both the prices of natural rubber and crude oilremain at high levels.
Copyright © 2011 Bridgestone Corporation4

Impact of the Great East Japan Earthquake
Impact to Production

Kuroiso Plant(Steel Cord）

Impact to Sales

Nasu Plant(PSR,AG,MC)

Tire Business
OE manufacturers restarted productions but did notreach full capacity. Tires sales to OE manufacturers
declined in 1st half of 2011.

Tochigi Plant（PSR,TBR)
Yokohama Plant(Diversified Products)
Tokyo Plant(PSR,AP)
Supply of Raw Materials
Bridgestone fully utilized its supply networkboth domestic and overseas.
Electricity Supply
Bridgestone fully utilized its co-generation system(facility for in-house power generation).

Bridgestone secured its production volume
as initially planned (2011 1st half).

Increased the sales of Japan replacement market
and the export.
The sales of commercial products, which werenecessary in recovery efforts as a result of theearthquake, were prioritized. The products included
truck and bus tires as well as off the road tires forconstruction and mining vehicles.
Diversified Products Business
There was a negative impact to the sales ofproducts for OE manufacturers (anti-vibration
rubber and seat pads etc.) as well as that ofsporting goods.

*PSR: Radial tires for passenger cars, TBR: Radial tires for trucks and buses, AG: Tires for agricultural equipment, MC: Tires for motorcycle. AP: Tires for aircraft

Extraordinary loss because of the earthquake：
A 2.4 billion yen extraordinary loss for 1st half fiscal 2011.
(Losses include expenses for repairs and recoveries of buildings and machineries, andexpenses for the disposals of inventories and fixed assets.)
Copyright © 2011 Bridgestone Corporation5Highlights of Financial Results for First Half of Fiscal 2011
Comparison to 2010 1st Half
Consolidated
results

Increased both the net sales and operating income vs. 2010
1st half. Increases in volume and prices as well as theimplementation of “Lean & Strategic” initiatives, havehelped to overcome the impact of raw material costs andthe appreciation in currencies.

Results byGeographicSegments

Increases in net sales and operating income vs. 2010 1st Half in all
geographic segments except for Japan. Decreases from theappreciation in currencies, and also the impact of rising raw materialcosts, exceeded the increases of volume and pricing.

Reinforce
Fundamental
Competencies

Steadily expanded production capacity to meet increases in demand,especially in emerging countries.

Balance Sheet
Cash Flow

The working capitals have increased because of the impact of raw
material costs, causing a decrease in net cash provided by operating
activities.

Copyright © 2011 Bridgestone Corporation

6

Consolidated Results for First Half of Fiscal 20112010 1st Half
Results

Net Sales(Yen in billions)

Reference
May 13th, 2011
Announcement

VS. PY (%)

2011 1st Half
Projections

1,480.0

2011 1st Half
Results

1,385.9

1,459.1+51,147.0

1,221.2+6244.2

245.1-Operating Income

78.4

93.6

+19Tires

70.6

89.7

+277.83.8(51)

Ordinary Income

67.9

91.8

+3564.0

Net Income

44.5

54.1

+2235.0

(9)
(6)

114

Tires
Diversified
Products

Diversified
Products

72.0*Figures within parentheses mean minus

Yen/US dollar rate:
Yen/Euro rate:

91
121

82
115

Copyright © 2011 Bridgestone Corporation

83
7

Analysis of Consolidated Operating Income for First Half of Fiscal 2011

(Yen in billions)Price, Mix,Volume etc.
+160.2ForeignExch. Loss
△20.0
SGA
△14.0

Strategic
Products Depreciation+0+13.0

RawMaterials△124.0Exchange ratesensitivity(full year)
1USD：2.0bil.
1EUR：1.0bil.

2010 1H
Results+15.2

2011 1HResults

Copyright © 2011 Bridgestone Corporation

8

Financial Results for First Half of Fiscal 2011 : Geographic Segments(Yen in billions)2011 1st Half
Results

VS. PY (%)

1,385.9

1,459.1+5

Japan

546.3

575.7+5

The Americas

607.8

632.5+4Europe

188.2

206.7+10

Other Regions

296.6

347.3+17

2011 1st Half
Results

VS. PY (%)

Net SalesConsolidated

Operating Income

2010 1st Half
Results

2010 1st Half
Results

Consolidated

78.4

93.6+19Japan

29.5

27.5(7)The Americas

24.7

37.0

+50Europe

2.4

5.3+114

Other Regions

23.9

26.2+10*Figures within parentheses mean minus
Copyright © 2011 Bridgestone Corporation

9B/S Highlight
FY 2011 1st Half
(As of June 30,2011)

Total Assets
Total Current Assets
Total Fixed Assets
Total Equity
Ratio of total equity to total assets (%)
Interest-Bearing Debt (Net)(Yen in billions)

2,785.3
1,342.5
1,442.7

+78.7
+65.6
+13.0

1,259.643.9

+83.5
+1.7

551.5+105.3

2011
1st Half Results

Capital Expenditure
Depreciation
ROA (%)

VS. Dec. 31, 2010

(Yen in billions)VS. PY(Yen in billions)(Yen in billions)

73.3
78.0
3.9

(3.9)
(3.6)
+0.6

*Figures within parentheses mean minus
Copyright © 2011 Bridgestone Corporation

10

Consolidated Projections for Fiscal 2011

Forecast of Business Environment Surrounding Bridgestone Group
Estimated Tire Demand Ratio for Full Year 2011

Currency Exchange(% VS. Full Year 2010)2011
1st Half2011
2nd Half2011
Full YearMTP2010

USDollar82 yen

80 yen81 yen95 yen115 yen

115 yen

115 yen

120 yen*Tires for Original Equipment
Markets

PSR

TBRJapan

86

113

N. America

108

132

EuroEurope

106

120

Strong yen to continue in 2011 2nd half
Stronger yen compared to MTP2010*Tires for Replacement
Markets

PSR

TBR

Japan

101

106

N. America

99

105
104

Europe98

Thailand102

112

Indonesia

106

121

India

115

125

China

120

116

Raw Materials*Source : Current Prices for Singapore Commodity Exchange Limited

PSR: Radial tires for passenger cars
TBR: Radial tires for trucks and buses*The numbers of demand are estimated by Bridgestone Corporation.

Future price of natural rubber is unclear.

Copyright © 2011 Bridgestone Corporation

12Consolidated Projections for Fiscal 20112010
Results
Net Sales(Yen in billions)

Reference
May 13th, 2011
Announcement

VS. PY (%)

2011
Projections
3,190.0

2011
Projections

2,861.6

3,130.0+92,379.5

2,640.0+11494.6

500.0+1

Operating Income

166.4

194.0

+17

Tires

153.1

184.0+2013.3

10.0(25)

Ordinary Income

147.9

180.0+22151.0

Net Income

98.9

115.0

+1694.081115(7)(1)

Tires
Diversified
Products

Diversified
Products

167.0*Figures within parentheses mean minus

Yen/US dollar rate:
Yen/Euro rate:88116

Copyright © 2011 Bridgestone Corporation

13

Analysis of Consolidated Operating Income for Fiscal 2011

(Yen in billions)

ForeignExch. Loss
△25.0 Depreciation SGA
△1.0
△34.0

StrategicPrice, Mix, Products+24.0
Volume etc.
+340.5Raw
Materials△277.0Exchange ratesensitivity(full year)
1USD：2.0bil.
1EUR：1.0bil.

2010 FY
Results+27.5

2011 FY
Projections

Copyright © 2011 Bridgestone Corporation

14

Financial Projections for Fiscal 2011 : Geographic Segments(Yen in billions)

Net Sales

2011Projections

2010
Results

VS. PY (%)

Consolidated

2,861.6

3,130.0+9Japan1,154.6

1,250.0+8The Americas

1,223.9

1,330.0+9Europe

383.8

430.0+12

Other Regions

611.9

720.0+18

Operating Income

2011
Projections

2010
Results

VS. PY (%)

Consolidated

166.4

194.0+17Japan

61.6

73.0+18

The Americas

48.3

62.0+28

Europe7.1

10.0+40

Other Regions

44.9

54.0+20

Copyright © 2011 Bridgestone Corporation

15Dividends(yen per share)

2009
Results

2010
Results

2011
Projections

Interim dividend

810

Year-end dividend

81010Total

162020(*)

10(*Date of dividend payment : September 1, 2011)

Copyright © 2011 Bridgestone Corporation

16Progress of Mid-term Management Plan 2010 (MTP2010)
Necessary Actions to Achieve “ROA 6%” in 2012
◆ Steadily Implement Initiatives Announced in MTP2010◆ Respond to a Movement of Raw Material Prices in a Timely Manner(Yen in billions)

Factors behind
operating income increase

Increase
MTP20102009→2012

Increase
Projections
2009→2011

Increase Ratio

Expansion of strategic
products+65.0+54.083%

Rationalization+40.0+33.083%

Diversified products
business+45.0+14.031%

Unit increase, others+55.0+16.029%

Copyright © 2011 Bridgestone Corporation

APPENDIX17Appendix
Price increases of tires for replacement in major markets
Markets

Year / MonthGroup％JapanMarch, 2011

TBR

Ave 7%

June, 2011

PSR

Ave 8%

September, 2011

TBR

Ave 10%January, 2010

PSR

Max 5%June, 2010

PSR

Max 6%

July, 2010

TBR

Max 6%

November, 2010

PSR/TBR

Max 8%

February, 2011

TBR

12%

April, 2011

PSR

Max 8%

N. America

EuropeJuly, 2011

TBR

Ave 11%

April, 2010

PSR/TBR

3%～5%

October, 2010

PSR/TBR

3%～6%

Jan - Mar, 2011

PSR/TBR

Ave 6%

Apr - Jun, 2011

PSR/TBR

Ave 7%

Jul - Sep, 2011

PSR/TBR

PSR5%, TBR12%(Ave）PSR：Radial tires for passenger cars
TBR：Radial tires for trucks and buses* Showing only PSR and TBR in the chart* Only Bridgestone Brand

Copyright © 2011 Bridgestone Corporation

19Appendix
Building of New Plants and Capacity Expansion of Existing Plants in Emerging Countries
Country

Plant

Tires

Increased Capacity

ThailandNong Khae

PSR+13500/day by the end of 2014

Chonburi

TBR+2500/day by the first half of 2014

Indonesia

Karawang

PSR+3000/day by the first half 2012

India

IndoreTBR+400/day by the second half of 2012

Pune

PSR

+10000/day by the end of 2020 *1

TBR+3000/day by the end of 2020 *2

PSR+4200/day by the second half of 2011

ChinaWuxi
Tianjin

PSR+4100/day by the first half of 2013

PSR+8800/day by the first half of 2014

Start of Production(*1 the first half of 2013)(*2 the second half of 2013)

PSR：Radial tires for passenger cars
TBR：Radial tires for trucks and buses

Copyright © 2011 Bridgestone Corporation20

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