Consolidated Financial Statements for the Fiscal Year Ended December 31, 2013
February 18, 2014
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:+81-3-6836-3100
Scheduled date of annual shareholders’ meeting:March 25, 2014
Scheduled date of securities report submission:
March 25, 2014
Scheduled date of dividend payment commencement:
March 26, 2014
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 2013(January 1, 2013 - December 31, 2013)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales

Operating income

Yen in millions%

3,568,091
3,039,738

17.4
0.5

Fiscal 2013
Fiscal 2012

Yen in millions

Net income
per share%

438,131285,995
Fiscal 2013
Fiscal 2012

(Reference) Comprehensive Income:Diluted net income
per share
Yen

Fiscal 2013
258.10Fiscal 2012
219.26(Reference) Equity in earnings of affiliates:

Ordinary income

53.2
49.5

Net income

Yen in millions%

Yen in millions%

202,053
171,605

17.7
66.7

434,79352.5
285,04359.0¥ 480,288 million (73.4%)¥ 276,977 million (－%)

Net return on Total
equityOrdinary income/ Total assets

Operating income
margin

Yen

%

%

%

257.81
219.10Fiscal 2013
Fiscal 2012

12.7
13.7
¥ 3,819 million¥ 2,145 million

13.1
10.0

12.3
9.4

Net assets

Ratio of total equity tototal assets(2) Consolidated Financial Position
Total assets

Total equity per share

Yen in millions

Yen in millions%

Yen

3,577,045
3,039,798

1,862,963
1,417,347
Fiscal 2013
Fiscal 2012

50.5
45.2

2,305.64
1,754.30

Fiscal 2013
Fiscal 2012
(Reference) Total equity¥ 1,805,285 million¥ 1,373,021 million(3) Consolidated Cash FlowsNet cash provided
by operating activities

Net cash provided by(used in) financing
activities

Net cash used ininvesting activities

Cash and cash
equivalents at end ofyear

Yen in millions

Yen in millions

Yen in millions

Yen in millions

471,771404,467(265,229)(237,928)(183,722)(55,351)

324,596
269,416

Fiscal 2013
Fiscal 2012

2. Dividends
1stquarterend

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

Yen

Fiscal 2012
Fiscal 2013
Fiscal 2014
(Projection)

Yen

Yen

Total

Dividends
Pay-out
ratio(Consolidated)

Total
dividends

Ratio ofdividends
to total equity(Consolidated)

Yen

Yen

Yen in millions

%

%

－
－

16.00
27.00

－
－

16.00
30.00

32.00
57.00

25,04544,628

14.6
22.1

2.0
2.8

－

40.00

－

40.00

80.00

22.0

3. Consolidated Projected Results for Fiscal 2014 (January 1, 2014 - December 31, 2014)(Percentage figures represent changes from the same period of previous year)
Net income
Operating income
Ordinary income
Net income
per share

Net salesFirst half year
Fiscal 2014

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

1,790,000
3,800,000

5.0
6.5

210,000
460,000

10.3
5.0

201,000
442,000

8.7
1.7

127,000
285,000

8.5
41.1

162.23364.05

* Notes(1) Changes in principal subsidiaries during fiscal 2013 : 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.
: Yes2) Changes in accounting policy other than 1): No3) Changes in accounting estimates: Yes4) Restatements: No(Note) These are subject to Article 14-7 of “the Ordinance on Terminology, Forms, and Preparation Methodsof Consolidated Financial Statements, etc.” For further details, please refer to “Consolidated Financial
Statements (5) Notes to the consolidated financial statements (Changes in accounting policy, etc.)” on
page 21.
(3) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
December 31, 2013
813,102,321 shares
December 31, 2012
813,102,321 shares
2) Number of shares of treasury stock at period end
December 31, 2013
December 31, 2012

30,115,568 shares
30,440,507 shares

3) Average outstanding number of shares (during the fiscal year)
December 31, 2013
782,860,668 shares
December 31, 2012
782,661,458 shares(Reference) Summary of Non-consolidated Results(January 1, 2013 - December 31, 2013)(1) Non-consolidated Operating Results
Net sales(Percentage figures represent changes from the same period of previous year)
Operating income

Ordinary income

Net income

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

1,006,602
939,399

7.2(3.3)

205,311
139,264

47.4
146.8

221,849
155,753

42.4
135.0

90,19891,960

(1.9)
171.4

Fiscal 2013
Fiscal 2012

Net income
per share
Fiscal 2013
Fiscal 2012

Diluted net income
per share
Yen

Yen

115.22117.50115.09117.41(2) Non-consolidated Financial Position
Total assets
Fiscal 2013
Fiscal 2012
(Reference) Total equity

Net assets

Ratio of total equity tototal assets

Total equity per share

Yen in millions

Yen in millions%

Yen

1,895,359
1,700,914

1,345,357
1,242,016
Fiscal 2013
Fiscal 2012

70.9
73.0

1,716.16
1,585.50¥ 1,343,736 million¥ 1,240,917 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 2014.”

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

[ 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 2013 and 2014

…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…P10(1) Consolidated Balance Sheet…P10(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…P12

Consolidated Statement of Income…P12

Consolidated Statement of Comprehensive Income…P13(3) Consolidated Statement of Changes in Net Assets…P14(4) Consolidated Statement of Cash Flows…P16(5) Notes to the consolidated financial statements…P18(Notes regarding going concern assumption)…P18(Basic important matters for preparation of consolidated financial statements)…P18(Changes in accounting policy, etc)

…P21

(Changes in presentation)…P22(Consolidated Balance Sheet)…P23(Consolidated Statement of Income)…P24(Consolidated Statement of Changes in Net Assets)…P26(Consolidated Statement of Cash Flows)…P28(Segment Information)…P29(Per share information)…P31(Significant subsequent events)

…P32

…P33

5. Other(1) Senior Management Changes

…P33

1

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

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 2013]
1) Sales and earnings
Fiscal 2013

Increase(Decrease)

Fiscal 2012

Yen in billions

Yen in billions

Yen in billions%

3,568.0

3,039.7

528.3

17

Operating income

438.1

285.9

152.1

53

Ordinary income

434.7

285.0

149.7

53

Net income

202.0

171.6

30.4

18

Net sales

During fiscal 2013 (January 1 to December 31, 2013), the Companies’ operating environment was as follows.
The domestic economy showed signs of gradual recovery supported by improved exportations and effectivenessof economic and monetary policies with maintaining the correction of the appreciated Japanese yen. The UnitedStates economy has also shown signs of recovery. Although the European economy has shown signs that it hadbottomed out, it remained stagnant. The Asian economic expansion showed signs of 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 realize the ultimate goal of becoming “atruly global company” and achieving “Dan-Totsu in all aspects of our business.” Stepping up our efforts on a
global scale, the Companies were trying to anticipate market trends and competitors’ movements, enhance
technology and promoting innovation to increase the sales of highly competitive products and services, andconstruction and enhancing business models that will extend beyond the mere sales of products. Moreover, theCompanies were striving to rapidly implement a range of initiatives to increase the sales of strategic products,
strengthen supply capacity, improve manufacturing productivity, effectively utilize our management resources,and develop eco-friendly products and businesses.
As a result, net sales in fiscal 2013 were ¥3,568.0 billion, an increase of 17% from fiscal 2012; operating
income was ¥438.1 billion, an increase of 53%; ordinary income was ¥434.7 billion, an increase of 53%; and net
income was ¥202.0 billion, an increase of 18% due to recognition as an extraordinary loss related to US antitrust
laws of ¥44.7 billion, loss related to recall of ¥22.5 billion, plant restructuring costs in Japan of ¥8.6 billion andothers.

2

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

2) Segment Information

Fiscal 2013

Increase(Decrease)

Fiscal 2012

Yen in billions

Yen in billions

Yen in billions%

3,036.9

2,557.2

479.6

19

Operating income

399.4

260.4

139.0

53

Diversified
Products

Net Sales

546.2

499.0

47.1

9

Operating income

38.5

25.5

13.0

51

Consolidated
Results

Net Sales

3,568.0

3,039.7

528.3

17

438.1

285.9

152.1

53

Net Sales
Tires

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, total unit sales of tires for passenger cars and light trucks increased firmly compared to fiscal 2012 due
to an increase of the sales of replacement tires. The unit sales of tires for trucks and buses increased strongly
compared to fiscal 2012. In the Americas, the unit sales of tires for passenger cars and light trucks in North
America increased steadily compared to fiscal 2012. The unit sales of tires for trucks and buses increased strongly
compared to fiscal 2012. In Europe, the unit sales of tires for passenger cars and light trucks decreased comparedto fiscal 2012. The unit sales of tires for trucks and buses increased strongly. In Asia Pacific, the unit sales of tires
for passenger cars and light trucks increased steadily compared to fiscal 2012 due to an increase of the sales of
replacement tires. The unit sales of tires for trucks and buses increased strongly compared to fiscal 2012. In China,
the unit sales of tires for passenger cars and light trucks exceeded sales of fiscal 2012 as well as tires for truck andbuses. In the specialty tire business, the sales volume of off-the-road radial tires for construction and mining
vehicles remained unchanged from fiscal 2012.
As a result, net sales and operating income in the tires segment during fiscal 2013 totaled ¥3,036.9 billion and¥399.4 billion, an increase of 19% and an increase of 53% from fiscal 2012, respectively.
In the diversified products segment, net sales totaled ¥546.2 billion, an increase of 9% from fiscal 2012, andoperating income was ¥38.5 billion, an increase of 51% from fiscal 2012 due to an increase in the profit ofdomestic business.

(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 2013

[Projections for fiscal 2014]
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 2014
projections

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,790.0

1,705.1

84.8

5

Operating income

210.0

190.3

19.6

10

Ordinary income

201.0

184.9

16.0

9

Net income

127.0

117.0

9.9

9

Net sales

3,800.0

3,568.0

231.9

6Operating income

460.0

438.1

21.8

5

Ordinary income

442.0

434.7

7.2

2

Net income

285.0

202.0

82.9

41

Yen

Yen

yen/dollar

100

96

yen/euro

135

126

yen/dollar

100

98

2

yen/euro

135

130

4

Net salesFirst half

Fiscal 2013

Full-year

First half
Exchange
rate

4
－

7

Full-year

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 2013

(2) Analysis of Financial Position
1) Cash flow

Fiscal 2013

Fiscal 2012

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions

Net cash provided by operating activities

471.7

404.4

67.3

Net cash used in investing activities(265.2)(237.9)(27.3)Net cash used in financing activities(183.7)(55.3)(128.3)

32.3

29.3

2.9

55.1

140.5

(85.3)At beginning of year

269.4

128.8

140.5

At end of year

324.5

269.4

55.1

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 ¥55.1 billion during 2013, to ¥324.5 billion, compared withan increase of ¥140.5 billion during the prior year.
(Cash flow by operating activities)
Net cash provided by operating activities increased ¥67.3 billion during 2013, compared with the prior year, to¥471.7 billion. The principal contributors in that cash provided included income before income taxes and minority
interests of ¥340.0 billion, compared with ¥268.0 billion during the prior year, depreciation and amortization of¥176.1 billion, compared with ¥155.0 billion during the prior year. These contributors offset a decrease in income
taxes paid of ¥117.6 billion, compared with ¥55.9 billion during the prior year.
(Cash flow by investing activities)
Net cash used in investing activities increased ¥27.3 billion compared with the prior year, to ¥265.2 billion.
Expenditures included payments of ¥267.0 billion for purchase of tangible assets, compared with payments of¥240.1 billion during the prior year.
(Cash flow by financing activities)
Net cash used in financing activities increased ¥128.3 billion compared with the prior year, to ¥183.7 billion.
The principal contributors in that cash used included net decrease in short-term borrowings of ¥81.0 billion,
compared with a net increase of ¥35.9 billion during the prior year, repayments for long-term borrowings of ¥67.4
billion, compared with ¥52.0 billion during the prior year, payments for redemption of bonds of ¥61.9 billion,
compared with ¥39.4 billion during the prior year, payments for cash dividends paid of ¥33.6 billion, comparedwith ¥21.9 billion during the prior year. These contributors offset proceeds from issuance of bonds of ¥50.0 billion,
compared with ¥28.1 billion in the prior year.

5Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

2) Trends in cash flow indicators

Fiscal 2011

Fiscal 2012

Fiscal 2013

Ratio of total equity to total assets (%)

42.2

45.2

50.5

Total equity ratio on market value basis (%)

51.0

57.3

87.1

Interest-bearing debt / cash flow ratio(years)

4.0

1.5

1.2

Interest coverage ratio(times)

8.8

24.2

31.8

(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 2013 and 2014
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 2013, the Company plans to pay a cash dividend of ¥57 per share, comprising a year-end cash
dividend of ¥30 per share and an interim cash dividend of ¥27 per share.
For the fiscal 2014, the Company plans to pay a cash dividend of ¥80 per share, comprising a year-end cash
dividend of ¥40 per share and an interim cash dividend of ¥40 per share.

6

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart
AS OF DECEMBER 31, 2013
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
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.

AND OTHERS

BSAM DIVERSIFIED PRODUCTS
OTHERSFIRESTONE BUILDING PRODUCTS COMPANY, LLC
AND OTHERSBRIDGESTONE FINANCE CORPORATIONBRIDGESTONE TREASURY SINGAPORE PTE. LTD.
AND OTHERS

All of the above-mentioned companies are our consolidated subsidiaries.
* Demerger of sales function division and renaming of European subsidiary
As of January 2014, the sales function of BRIDGESTONE ITALIA S.P.A. was transferred to
BRIDGESTONE ITALIA SALES S.R.L., which was newly established through a company demerger. In
addition, BRIDGESTONE ITALIA S.P.A. was renamed BRIDGESTONE ITALIA MANUFACTURING S.P.A.

7

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

3. Management Policies(1) Basic Management Policies
The Companies follow a corporate philosophy that consists of a mission, “serving society with superior quality”
and four foundations for fulfilling the mission — “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]”. Based on that corporate philosophy, the Companies
will pursue the ultimate goals of becoming “a truly global company” and achieving “Dan-Totsu in all aspects of ourbusiness.” Further, as a responsible global company, the Companies will respect the social culture and values of
the countries in which it conducts business activities, comply with laws and statutory regulations, protect the
global environment, and contribute to society.
(2) Management Strategies and Tasks
The Companies’ operating environment is undergoing substantial change in a wide range of areas, including
politics, the economy, the environment, and technical innovation. Social structures and consumer attitudes are alsochanging significantly.
In this setting, the Companies remain firmly committed to the principles of “Lean & Strategic” and “Optimize on aGroup and Global basis.” In other words, the Companies maintain an optimum balance between short-term
management measure and mid- and long-term management measures, with a focus on “Lean” in the short-termand “Strategic” in the mid- and long-term. At the same time, the Companies continue to implement management
reforms, giving the highest priority to optimization on a group and global basis. In this way, the Companies strive toachieve the goals outlined above.
In accordance with this fundamental approach, the Companies make full use of “the Strategic Business Unit
(SBU) organization” and “the Mid-Term Management Plan (MTP)” as tools to improve the quality and the speed ofmanagement reforms.
In regard to its organizational structure, the Companies will further increase the efficiency of the SBU system toensure that it can accurately understand the needs of global markets and customers and can meet these needs
rapidly.
To succeed in the severe operating environment, it is necessary to make full use of wide-ranging operating
resources. To ensure that the MTP fills that role, the Companies use a one-year rolling plan to respond to theturbulent operating environment with precision and speed. In this way, the Companies continue to aim for “thehigher level” positions with an appropriate balance between growth and profitability.
The 2013MTP, which was announced in October 2013, includes three priority items: “cultivating global corporate
culture”, “developing human resources capable of global management” and “upgrading the global management
structure.”
In regard to the first item, “cultivating global corporate culture,” the Companies ensure overall consistency on agroup and global basis, promote the brand strategy as a part of a fully integrated marketing strategy, andaccelerate technology and business model innovation. In an operating environment undergoing significant change,
the Companies are trying to anticipate market trends, increase sales of highly competitive products and services,and construct and enhance business models that will extend beyond the mere sales of products. In these ways,
the Companies create customer value and ensure further development of its competitive advantage anddifferentiation.
In regard to the second item, “developing human resources capable of global management,” the Companies
must utilize ideas from differing perspectives to maintain and extend its competitive advantage and differentiation.
Utilizing its strengths in the areas of diversity and its global network, the Companies are accelerating thedevelopment and promotion of diverse talent, including women, local / regional staff, and early career employees.
Moreover, the Companies advance the participation of local / regional staff in global management roles through the8Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

designation of English as an official company language and the restructuring of the SBUs.
In regard to the third item, “upgrading the global management structure,” The Companies promote four activities:“restructuring of the tire business SBUs”, “expansion of the diversified product business”, “enhancement ofgovernance systems,” and “establishing a closer bond / linkage between and among the parts of the entire group.”
In the “restructuring of the tire business SBUs,” to strengthen governance, including management efficiency andrisk management, the Companies are considering the restructuring of the tire business SBUs by expanding theEuropean SBU to include the Middle East and Africa and combining the China SBU and the Asia Pacific SBU.
In regard to “expansion of the diversified product business,” the Companies are utilizing the principles of“selection and concentration.” In the selected business, the Companies work to ensure further growth andimprovements by enhancing collaboration among businesses and promoting globalization.
In the “enhancement of governance systems”, the Companies work to ensure that management decision ismade in a fair and transparent manner. To that end, the Companies strengthen the check and balance functionsof the Board of Directors and upgrade the Board committees that support management, such as advisorycommittees to the Board of Directors. These measures are implemented in stages on a group and global basis.
Moreover, in implementing policies, the Companies implement local and regional policies that are responsive tothe needs and characteristics of each region and business while maintaining consistency with global strategies
and policies.
In “establishing a closer bond / linkage between and among the parts of the entire group”, the Companies
strengthen the functions supporting interdivisional activities on a group and global basis and take steps to see that
all SBUs can rapidly meet the needs of its markets and customers. Moreover, the Companies strengthen
collaboration on a group and global basis through global meetings, such as the Global Executive Committee.
In addition, the Companies will step up efforts to build systems to support the fulfillment of its responsibilities as acorporate group toward all of its stakeholders. The Companies will conduct regular yearly reviews of its policy forthe development of internal control systems that ensure appropriate operations. Moreover, the Companies will
undertake reviews of that policy as needed and steadily develop systems in accordance with the policy. Centeredon the Integrated CSR Enhancement Committee, the Companies’ corporate social responsibility activities will
establish systems and heighten the effectiveness of activities in all areas, including rigorous risk management forenvironmental protection, product safety, compliance and disaster prevention and safety initiatives; employee
education; and corporate citizenship activities.
Since being informed of the investigation by the U.S. Department of Justice (“DOJ”) in May 2012 regardinganti-competitive activities with competitors in relation to the sales of automotive anti-vibration rubber products (“AVP”),
the Company has been fully cooperating with the DOJ. Through the investigation, the Company becomes aware thatcertain employees had engaged in certain acts in violation of the U.S. antitrust laws from 2001 to 2008. Therefore in
February 2014, the Company entered into a plea agreement with the DOJ in which the Company agrees to pay a fine of
425 million U.S. Dollars. As a result, the Company has recorded an extraordinary loss of 44.7 billion Japanese Yen for
the fourth quarter of fiscal year 2013. The plea agreement is subject to approval by the U.S. Federal District Court.

Following the investigation into the marine hose cartel in May 2007 and the voluntary disclosure of possible
inappropriate payments to foreign government officials in February 2008, the Company has engaged in extensive
remedial efforts, including reinforcement of compliance trainings, reformation of the corporate governance structure andestablishment of corporate rules to prevent improper acts. As a result of these efforts, anti-competitive activities relating
to AVP ceased in 2008. The Company remains committed to pursue ever higher levels of its corporate governance andcompliance across the entire group companies worldwide in order to regain its trust.

9

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
Previous Year(As of December 31, 2012)

Current Year(As of December 31, 2013)

AssetsCurrent Assets
Cash and deposits

226,162

286,558

Notes and accounts receivable

444,669

528,465

Short-term investments

124,010

152,161

Merchandise and finished products

321,012354,370

Work in process

34,52437,353

Raw materials and supplies

165,188

165,379

Deferred tax assets

79,333

101,370

Other

89,187

103,594

Allowance for doubtful accounts(8,074)(11,871)

Total Current Assets(Note2)

1,476,013(Note2)

1,717,383

Fixed Assets
Tangible assets
Buildings and structures, net

352,194

414,442

Machinery, equipment and vehicles, net

376,232

454,423

Land

142,407

152,367

Construction in progress

185,128

237,504

Other, net

62,97376,321

Total tangible assets(Note1)Intangible assets

1,118,936(Note1)

34,118

1,335,060
46,826

Investments and other assets
Investments in securities(Note3)Long-term loans receivable

228,214(Note3)320,954

6,604

9,125

Deferred tax assets

110,82275,524

Other

70,157

77,749Allowance for doubtful accounts(5,067)(5,578)

Total investments and other assets

410,730

477,774

Total Fixed Assets(Note2)

Total

1,563,785
3,039,798

10(Note2)

1,859,661
3,577,045

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Yen in millions)
Previous Year(As of December 31, 2012)

Current Year(As of December 31, 2013)

Liabilities
Current Liabilities
Notes and accounts payable

168,568

188,693

Short-term borrowings

182,821

216,660

Commercial paper

40,435－Current portion of bonds

60,972

63,794

864

1,093

Income taxes payable

55,82754,571

Deferred tax liabilities

1,580

1,402

Provision for sales returns

3,222

3,036

Provision for loss related to US antitrust laws－

44,790

Provision for recall－

21,132

Provision for plant restructuring in Japan

－

8,582

Accounts payable-other149,543

170,235

Accrued expenses

174,138

230,887

Other

52,13054,405

Total Current Liabilities

890,105

1,059,285

Bonds

63,12150,000Long-term borrowings

262,330

221,384

Lease obligations

9,546

11,342

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

30,76958,047

302,794

236,747

18,47324,010

Provision for environmental remediation

3,969

3,309

Other

41,341

49,954

Total Long-term Liabilities

732,345654,795

1,622,450

1,714,081

Common stock

126,354

126,354

Capital surplus

122,630

122,865

1,428,747

1,597,140(57,247)(56,644)

1,620,484

1,789,714

133,439

200,703(948)(1,092)(246,190)(86,177)(133,763)(97,863)(247,462)

15,570

1,099

1,621

Minority Interests

43,22656,057

Total Net Assets

1,417,347

1,862,963

Total

3,039,798

3,577,045

Lease obligations

Long-term Liabilities

Total Liabilities
Net Assets
Shareholders' equity

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

11

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Yen in millions)
Previous Year
(Year ended December 31, 2012)

Current Year
(Year ended December 31, 2013)

Net Sales

3,039,738

3,568,091

Cost of Sales

2,017,237

2,267,663

Gross Profit

1,022,500

1,300,428

Selling, General and Administrative Expenses
Goods freightage expenses

125,005

148,912Advertising and promotion expenses

90,597

116,608

Salaries, allowances and bonuses

191,652

226,136Retirement benefit expenses

16,47819,259Depreciation

24,052

28,232

Research and development expenses(Note1)

Other
Total selling, general andadministrative expenses
Operating Income

82,801(Note1)89,097

205,916

234,048736,505

862,296285,995

438,131

Non-operating Income
Interest income

3,502

5,334

Dividend income
Share of profit of entities accounted for using
equity method
Foreign currency exchange gains

5,389

7,175

2,145

3,819

722

－

Other

13,542

16,189Total non-operating income

25,301

32,51916,462

14,825

－

4,111

9,790

16,921Non-operating Expenses
Interest expense
Foreign currency exchange loss
Other
Total non-operating expenses

26,25335,858

Ordinary Income

285,043434,793

Extraordinary Income
Gain on sales of tangible assets(Note2)

3,010(Note2)

5,030

Gain on sales of investment securities

4,054

－

Total extraordinary income

7,065

5,030

Extraordinary Loss
Impairment loss

(Note3)

14,024

Loss on disposals of tangible assets

3,011

Dismantlement expenses

4,117(Note3)

11,3004,062
3,370

Loss related to US antitrust laws－

(Note4)

44,790Loss related to recall－(Note5)22,504

Plant restructuring costs in Japan－(Note6)

8,652

Plant restructuring costs in Europe－(Note7)

5,044

Loss on business withdrawal(Note7)

Total extraordinary losses
Income before Income Taxes andMinority Interests
Income taxes - current
Income taxes - deferred

2,903

－

24,057

99,725

268,051

340,098

86,481

123,288

2,253

3,022

Total income taxes

88,735

126,311

Income before minority interests

179,316

211,733

7,710

11,733

171,605

202,053

Minority Interests
Net Income

12Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

Consolidated Statement of Comprehensive Income(Yen in millions)
Previous Year
(Year ended December 31, 2012)
Income before Minority Interests

Current Year
(Year ended December 31, 2013)

179,316

213,786

35,687

67,259－(392)

88,018

163,444

Post retirement liability adjustment forforeign companies
Share of other comprehensive income inaffiliates(27,563)

35,864

1,519

326

Total other comprehensive income

97,661

266,501

276,977

480,288

Shareholders of Bridgestone Corporation

265,279

465,086

Minority Interests

11,69815,202Other Comprehensive Income
Unrealized gain on available-for-salesecurities
Deferred gain (loss) on derivative
instruments
Foreign currency translation adjustments

Comprehensive Income
Comprehensive income attribute to:13

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(3) Consolidated Statement of Changes in Net Assets
Previous Year (Year ended December 31, 2012)(Yen in millions)Shareholders’ equity

Beginning balanceCommon stock

Capital surplus

126,354

122,629

Retainedearnings

1,279,978

Cumulative effects of changes inaccounting policies
Restated balance

Treasurystock-at cost

Total

(57,248)

1,471,713(922)
126,354

122,629

1,279,056(922)(57,248)

1,470,791(10)
12(21,914)
171,605(10)
12

1(57,247)

149,692
1,620,484(Cange in the year)(21,914)
171,605

Cash dividends
Net income for the year
Purchase of treasury stock0

Disposal of treasury stock
Net changes in the year
Total changes in the year
Ending balance－
126,3540
122,630

149,691
1,428,747

Accumulated other comprehensive income

Beginning balanceNet
unrealized
gain (loss)
on availablefor-salesecurities

Deferredgain (loss)
on derivative
instruments

Foreigncurrencytranslation
adjustments

Postretirement
liability
adjustments
for foreign
consolidated
companies

97,750(890)(331,784)(106,211)

Stockacquisition
right

Minority
interests

770

34,324

Cumulative effects of changes inaccounting policies
Restated balance(688)
97,750(890)(331,784)(106,211)

770

33,63635,68835,688133,439

(57)
(57)
(948)

85,59485,594(246,190)(27,551)(27,551)(133,763)

328
328
1,099

9,590
9,590
43,226(Cange in the year)
Cash dividends
Net income for the year
Purchase of treasury stock
Disposal of treasury stock
Net changes in the year
Total changes in the year
Ending balance

14

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

Current Year (Year ended December 31, 2013)(Yen in millions)Shareholders’ equity

Beginning balanceCommon stock

Capital surplus

126,354

122,630

Retainedearnings

Treasurystock-at cost

1,428,747

Total(57,247)

1,620,484

(14)
617

(33,661)
202,053
(14)
852

602
(56,644)

169,230
1,789,714(Cange in the year)(33,661)
202,053

Cash dividends
Net income for the year
Purchase of treasury stock

234

Disposal of treasury stock
Net changes in the year
Total changes in the year
Ending balance－
126,354234
122,865

168,392
1,597,140

Accumulated other comprehensive income

Beginning balanceNet
unrealized
gain (loss)
on availablefor-salesecurities

Deferredgain (loss)
on derivative
instruments

Foreigncurrencytranslation
adjustments

Postretirement
liability
adjustments
for foreign
consolidated
companies

133,439(948)(246,190)

67,264
67,264
200,703

(144)
(144)
(1,092)160,013160,013(86,177)Stockacquisition
right

Minority
interests(133,763)

1,099

43,22635,89935,899(97,863)

522
522
1,621

12,83012,83056,057(Cange in the year)
Cash dividends
Net income for the year
Purchase of treasury stock
Disposal of treasury stock
Net changes in the year
Total changes in the year
Ending balance

15

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(4) Consolidated Statement of Cash Flows(Yen in millions)
Previous Year
(Year ended December 31, 2012)

Current Year
(Year ended December 31, 2013)

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

268,051

340,098

Depreciation and amortization

155,065

176,179

Increase in allowance for doubtful accounts

959

2,556

Increase(decrease) in accrued pension andliability for retirement benefits(3,796)(12,445)

Interest and dividend income(8,891)(12,510)

Interest expense

16,462

14,825

Foreign currency exchange gains(losses)(186)(2,245)Equity in earning of affiliates(787)(2,064)Gain on sales of tangible assets(3,010)(5,030)Gain on sales of investment securities(4,054)－

Impairment loss

14,024

11,300Loss on disposals of tangible assets

3,011

4,062

Dismantlement expenses

4,117

3,370

Loss related to US antitrust laws－

44,790Loss related to recall－

22,504

Plant restructuring costs in Japan

－

8,652

Plant restructuring costs in Europe

－

5,044

Loss on business withdrawal

2,903

－

Decrease(increase) in notes and accounts
receivable

43,792(48,419)

Decrease(increase) in inventories

47,59643,916

Increase(decrease) in notes and accounts payable(42,986)

14,050

Other(24,091)(16,850)

Subtotal

468,180

591,784

8,943

12,479Interest paid

(16,701)(14,825)

Income taxes paid

(55,955)(117,667)

Net Cash Provided by Operating Activities

404,467

471,771

Payments for purchase of tangible assets(240,144)(267,033)

Proceeds from sales of tangible assets

11,17810,086

Purchase of intangible assets(4,845)(7,533)

Proceeds from investments in securities

4,822

3,659

Payments of loans receivable(1,271)(3,067)

Proceeds from collection of loans
receivable

1,070

1,246

Other

(8,738)(2,589)(237,928)(265,229)

Interest and dividends received

Cash Flows from Investing Activities

Net Cash Used in Investing Activities

16

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

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

Current Year
(Year ended December 31, 2013)

Cash Flows from Financing Activities
Net increase(decrease) in short-term borrowings(35,918)(81,076)

Proceeds from long-term borrowings

68,785

12,833

Repayments of long-term borrowings(52,068)(67,443)

Proceeds from issuance of bonds

28,18350,000

Payments for redemption of bonds(39,465)(61,976)

Proceeds from minority interests for
additional shares

－

1,932

Cash dividends paid

(21,912)(33,654)

Cash dividends paid to minority(2,116)(4,268)

(839)

(68)

(55,351)(183,722)

29,38832,361

140,576

55,179128,840

269,416

Other
Net Cash Provided by(used in) Financing Activities
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)

17269,416(Note1)

324,596Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(5) Notes regarding going concern assumption
Not applicable(Basic important matters for preparation of consolidated financial statements)
1. Scope of consolidation
1) Number of consolidated subsidiaries: 311 companies
Names of principal companies:
Refer to “2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart”
Changes in scope of consolidation:
Additions: 9 companies (Increased by establishments)
Deletions: 14 companies (Mainly, decreased by mergers)
2) There are no non-consolidated subsidiaries
2. Scope of application of equity-method accounting
1) Number of equity-method affiliates: 146 companies
Main equity-method affiliate
BRISA BRIDGESTONE SABANCI LASTIK SANAYI VE TICARET A.S.
Changes in the scope of equity-method accounting
Additions: 1 companies (Increased by share acquisition)
Deletions: 3 companies (Mainly, decreased by disposal)
2) There are no non-consolidated subsidiaries or affiliates to which equity-method accounting is not applied.
3. 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 BRIDGESTONE 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.

18

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

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.
b) 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) Provision for loss related to US antitrust laws
Due to the plea agreement with U.S. Department of Justice regarding sales of certain automobile
parts, an estimated amount of future obligations is recorded.
d) Provision for recall
In order to reserve for outlays related to check and replacement of object tires, an estimated amountof future obligations is recorded.
e) Provision for plant restructuring in Japan
In order to reserve for plant restructuring costs in Japan, an estimated amount of future obligations isrecorded.
f) 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.
g) 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”).
h) Provision for environmental remediation
In order to reserve for outlays for legally required removal and disposal of PCB (Polychlorinatedbiphenyl), etc., an estimated amount of future obligations is recorded.

19

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20136) 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.
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 Statement 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.

20

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Changes in accounting policy, etc.)(Changes due to revisions of accounting standards, etc.)
Due to the application of IAS 19 “Employee Benefits” (revised in June 16, 2011) from the current fiscal year,
the method of recognition and presentation of actuarial gains and losses, past service cost and interest costchanged in certain overseas subsidiaries.
Those overseas subsidiaries applied the revision in this policy retrospectively, and the consolidated financial
statements for the previous year changed due to the retrospective application. The effect of thisretrospective application on 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 current fiscal year, domestic companies changed the depreciation method for tangible assets acquiredon 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.

21

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Changes in presentation)
1. Consolidated Statement of Income
In the previous fiscal period, "share of profit of entities accounted for using equity method" was included in"other" under "non-operating income." However, because the amount of "share of profit of entities accounted
for using equity method" exceeded 10% of the total amount of non-operating income, it is presented
separately from the period under review. To reflect this change in the method of presentation, theconsolidated financial statements for the previous fiscal period have been restated.
As a result, ¥15,688 million that was presented in "other" under "non-operating income" in the consolidated
financial statements for the previous fiscal period has been restated as ¥2,145 million in "equity-method
investment income" and ¥13,542 in "other."
2. Consolidated Statement of Cash Flows
1) "Amortization of goodwill"In the Cash Flows from Operating Activities section, “Amortization of goodwill” was presented separately inthe previous fiscal year. Due to a decline in financial materiality, “Amortization of goodwill” are now presented in“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 Operating Activities section, the ¥1,445 million that had previously beenpresented as “Amortization of goodwill” in the Consolidated Statement of Cash Flow for the previous fiscal year
is now included in “Other.”2) “Increase(decrease) in allowance for doubtful accounts”, "Foreign currency exchange gains (losses)" and "Equity
in earnings (losses) of affiliates"
In the Cash Flows from Operating Activities section, "Increase (decrease) in allowance for doubtful accounts","Foreign currency exchange gains (losses)" and "Equity in earnings (losses) of affiliates" were included in “Other”
in the previous fiscal year. Due to an increase in financial materiality, “Increase (decrease) in allowance for
doubtful accounts”, "Foreign currency exchange gains (losses)" and "Equity in earnings (losses) of affiliates" 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 Operating Activities section, the ¥959 million in “Increase(decrease) inallowance for doubtful accounts”, the ¥(186) million in "Foreign currency exchange gains (losses)" and the ¥787
million in "Equity in earnings (losses) of affiliates" that had previously been included in "Other" are now presented
separately.

22

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Notes to the consolidated financial statements)(Consolidated Balance Sheet)
Note 1 Accumulated depreciation of tangible asset
Previous Year(As of December 31, 2012)¥2,030,296 million

Current Year(As of December 31, 2013)¥2,275,571 million

Note 2 Assets pledged as collateralPrevious Year(As of December 31, 2012)¥18,144 million

Current Year(As of December 31, 2013)¥8,109 million

Obligations corresponding to the preceding
Previous Year(As of December 31, 2012)
Short-term bank borrowings
Long-term bank borrowings¥1,064 million¥4,484Note 3 Assets or liabilities related to non-consolidated subsidiaries and affiliates
Previous Year(As of December 31, 2012)
Investments in securities¥14,816 million

Current Year(As of December 31, 2013)¥1,519 million¥6,079Current Year(As of December 31, 2013)¥17,190 million

Note 4 Guarantees
Previous Year(As of December 31, 2012)
Guarantees on employees’ bank borrowings¥10 million

Current Year(As of December 31, 2013)¥3 million

Note 5 Balance of trade notes discounted
Previous Year(As of December 31, 2012)¥1,379 million

23

Current Year(As of December 31, 2013)¥1,918 million

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Consolidated Statement of Income)Note 1 Research and development expenses

General and administrative expenses

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

Current Year
(Year ended December 31, 2013)¥89,097 million

Note 2 Gain on sales of tangible assets
Previous Year (Year ended December 31, 2012)
Gain on sales of tangible assets mainly consists of gain on sales of land.
Current Year (Year ended December 31, 2013)
Gain on sales of tangible assets mainly consists of gain on sales of land.

Note 3 Impairment loss
Previous 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)Operating

Machinery, equipment and vehicles, buildings

Japan

4,653

assetsand structures, etc.

North Americe, 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.

24

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

Current Year (Year ended December 31, 2013)
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 ¥11,300 million. That total included ¥3,291 million for machinery,equipment and vehicles, ¥1,724 million for buildings and structures, ¥415 million for land and ¥5,869 million forothers.
USE

Classification

Location

Amount(Yen in millions)Operating

Machinery, equipment and vehicles, buildings

China, Japan, etc.

5,145

assetsand structures, etc.

Disposal assets

Machinery, equipment and vehicles, etc.

Poland, Japan

6,049

Idle assets

Land

Japan

104

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 5.1 to 13.5%. 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 related to US antitrust laws
Current Year (Year ended December 31, 2013)
The Company has recorded the related loss as a result of entering into the plea agreement with U.S.
Department of Justice regarding certain automobile parts.
Note 5 Loss related to recall
Current Year (Year ended December 31, 2013)
Due to the Company implemented a recall for certain medium-size and large-size truck and bus tires
manufactured by the Tochigi Plant and by BRIDGESTONE (SHENYANG) TIRE CO., LTD., a consolidated
subsidiary, the expenses related to the check, replacement, etc. of the recalled tires were recorded.

Note 6 Plant restructuring costs in Japan
Current Year (Year ended December 31, 2013)
The Company has recorded the expenses besed on the decision of the Kuroiso Plant closing as a part ofproduction realignments in Japan.

25

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

Note 7 Plant restructuring costs in Europe
Current Year (Year ended December 31, 2013)
BRIDGESTONE EUROPE NV/SA (BSEU), the Company's regional head quarter in Europe, has recorded
expenses related to a plan to increase the competitiveness of the Bari Plant of BRIDGESTONE ITALIA
S.P.A., BSEU's Italian subsidiary. The steps were taken in accordance with the approval of the government,
unions, and other parties. On March 4, 2013, BSEU had decided to close the Bari Plant. However, under the
new plan, operations could possibly be continued if productivity and costs reach the target levels that havebeen agreed upon.

Note 8 Loss on business withdrawal
Previous Year (Year ended December 31, 2012)
As a result of the decision to withdraw from the electronic paper business, related expenses have beenrecorded.

26

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Consolidated Statement of Changes in Net Assets)
Previous 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 note 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

DetailsStockacquisitionrights as
stock
options

Filingcompany

Type of shares
to be used asstockacquisitionrightsNumber 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)

－

－

－

－

－

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

Total

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 2013

Current Year（Year ended 31 December 2013)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2012
Number of shares issued
Common stock(Thousands of shares)

As of
December 31,
2013

813,102－－

813,10230,4404

329

30,115

Treasury stock
Common stock(Thousands of shares)(see notes 1 & 2 )Notes 1:

The increase of treasury stock consists of the purchase of 4 thousand shares according to the requests fromthe shareholders who have odd-lot shares.
2: The decrease of treasury stock consists of 329 thousand shares used for the exercise of stock options andother.

2. Stock acquisition rights

DetailsStockacquisitionrights as
stock
options

Filingcompany

Type of shares
to be used asstockacquisitionrightsNumber of shares to be used for Stock acquisition rights
As ofDecember31, 2012

Increase

As ofDecember31, 2013

Decrease

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

－

－

－

－

－

1,621

－

－

－

－

－

1,621

Resolution

Type

Total dividends(yen in millions)

Annual Shareholders’Meeting, March 26,
2013

Common StockBoard of Directors,
August 9, 2013

Common Stock

Total

3. Dividends(1) Dividend payments
Dividend per
share

Record date

Effective date

12,522¥16

December 31,
2012

March 27,2013

21,138¥27

June 30,2013

September 2,
2013(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 25,
2014

CommonStock23,489Retainedearnings

28¥30

December 31,
2013

March 26,
2014

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Consolidated Statement of Cash Flows)
Note 1

Relationship between cash and cash equivalents at fiscal year end and amount shown inConsolidated Balance Sheet(Yen in millions)

Cash and deposits
Short-term investments
Total

Previous Year
(Year ended December 31, 2012)

Current Year
(Year ended December 31, 2013)(As of December 31, 2012)
226,162
124,010350,172(As of December 31, 2013)
286,558
152,161438,719(80,756)(114,123)

269,416

324,596

Time deposits, bonds, etc. withterms of more than three months
Cash and cash equivalents

29

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(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 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

3,089

13,455

16,545(16,545)－2,557,216

499,067

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

260,488

25,514

286,003(7)

285,995

2,672,865

368,872

3,041,738(1,939)3,039,798

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

Inter-segment
Total
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 2013

Consolidated Results for Fiscal 2013(January 1, 2013 - December 31, 2013)
Diversified
Products

Tires(Yen in millions)
Adjustments(notes)

Total

Consolidated

Net sales:
External customers－

3,033,660

534,430

3,568,091

3,242

11,787

15,030(15,030)－

3,036,902

546,218

3,583,121(15,030)

3,568,091

399,496

38,560438,05774

438,1313,175,922

402,226

3,578,149(1,104)

3,577,045

158,722

17,456

176,179－

176,179

Amortization of goodwill

922

57

980

－

980

Investment for
equity-method affiliates

16,977217

17,194(4)

17,190

Increase in tangible andintangible fixed assets

255,907

19,067274,974－

274,974

Inter-segment
Total
Segment income(Operating income)Segment assets

3,568,091

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.

31

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Per share information)(Yen)
Previous Year
(Year ended December 31, 2012)

Current Year
(Year ended December 31, 2013)

Total equity per share

1,754.30

2,305.64

Net income per share

219.26258.10

Diluted net income per share

219.10257.81

Items

Note:

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

Previous Year
(Year ended December 31, 2012)
Net income per share

Current Year
(Year ended December 31, 2013)(Yen in millions)(Yen in millions)

171,605

202,053－－

171,605

202,053

Average number of shares heldby common shareholders
during term(Thousands of shares)
782,661(Thousands of shares)
782,860

Diluted net income per share(Thousands of shares)(Thousands of shares)

－
583
(583)

－
878
(878)

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2005
Common Stock252―――――――――――――――――Net Income
Amount not belonging tocommon shareholders
Net income corresponding tocommon shareholders

Net income adjustments
Increase of common stock(stock option portion include in
the above)
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, 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 27, 2008
Common Stock230

32

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

(Significant subsequent events)

Not applicable33

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

5. Other(1) Senior Management Changes

Bridgestone Corporation announced that its board of directors has approved the following proposals for senior
management changes today.

1) New Member of the Board of Directors

Current occupation in parentheses(To be appointed after approval at the Company’s annual Shareholders' Meeting on March 25, 2014)
Member of the Board

Yuri Okina[ Research Director, Chief Senior
Economist, the Japan ResearchInstitute, Limited ]* Ms. Yuri Okina is candidate for outside director as set forth in Article 2-15 of the Companies Act.

2) New Member of Corporate Auditors

Current occupation in parentheses(To be appointed after approval at the Company’s annual Shareholders' Meeting on March 25, 2014)
Corporate Auditor (full-time)Masahito Tsuji[ Vice President and Officer
Assistant to Vice President and Senior
Officer, Responsible for Global Head
Office ]3) Retiring Member of the Board of Directors

Plan after retirement in parenthesis(Effective March 25, 2014)
Member of the Board

Takao Enkawa[ External Advisor ]* Mr. Takao Enkawa is an outside director as set forth in Article 2-15 of the Companies Act.

4) Retiring Corporate Auditor

Plan after retirement in parenthesis(Effective March 25, 2014)
Corporate Auditor (full-time)

Katsuji Hayashi[ Advisor ]* Mr. Katsuji Hayashi is an outside corporate auditor as set forth in Article 2-16 of the Companies Act.

34

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

5) Reappointed Members of the Board of Directors

Current occupation in parentheses(To be appointed after approval at the Company’s annual Shareholders' Meeting on March 25, 2014)CEO and Representative Board Member

Masaaki Tsuya

Concurrently Chairman of the Board
COO and Representative Board Member[ CEO and Representative Board Member
Concurrently Chairman of the Board ]Kazuhisa Nishigai[ COO and Representative Board Member

Concurrently responsible for Japan Tire

Concurrently responsible for Japan Tire

Business

Business ]Senior Vice President

Yoshiyuki Morimoto[ Senior Vice President

Member of the Board

Member of the Board

Chief Technology Officer

Chief Technology Officer

Responsible for Technology;

Responsible for Technology;

Concurrently responsible for

Concurrently responsible for

CSR and Quality Management

CSR and Quality Management
Environment ]Senior Vice President

Narumi Zaitsu[ Senior Vice President

Member of the Board

Member of the Board

Responsible for International Tire

Responsible for International Tire

Business Operations

Business Operations ]International Tire Business Operations
Member of the Board

Sakie Tachibana[ Member of the Board ]Fukushima
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, Ms. Kimiko Murofushi, and Mr. Scott Trevor Davis are candidates for outside
directors as set forth in Article 2-15 of the Companies Act.

35

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2013

6) New Members of Corporate Officers

Current positions and responsibilities
in parentheses(Effective March 25, 2014)
Vice President and Officer

Kenichi Togami[ Director, Internal Auditing Office,Internal Auditing;Diversified Products, Sports and Cycle

Concurrently Director, Internal Auditing

Business Administration Division;

Office,Concurrently General Manager, Diversified

Diversified Products, Sports and Cycle

Products, Sports and Cycle BusinessBusiness Administration Division;

Administration Office;Concurrently General Manager, Diversified

Concurrently Assistant to Vice President

Products, Sports and Cycle Businessand Officer, Innovation Development ]Administration Office;Concurrently Assistant to Vice President
and Officer, Innovation Development
Vice President and Officer

Akira Matsuda[ Director, eco-Activities Promotion Division ]Gordon Knapp[ Member of the Board and Executive Vice

Environment;
Concurrently Director, eco-Activities
Promotion Division
Vice President and Officer of Bridgestone
Corporation

President of Bridgestone

Member of the Board and Chief Operating

Americas, Inc. ]Officer of Bridgestone
Americas, Inc.
* Bridgestone Corporation announced above changes on January 31, 2014

7) Retiring Corporate Officer

Plan after retirement in parenthesis(Effective March 25, 2014)
Vice President and Officer

Isaku Motohashi[ Advisor ]Internal Manufacturing Management* Bridgestone Corporation announced above change on January 31, 201436