Financial Resultsfor 1st Half of Fiscal 2012

Bridgestone Corporation
August 7, 2012

Contents

１．Business and Financial Performance for
1st Half of Fiscal 2012

P. 3

２．Consolidated Projections for Fiscal 2012

P.11

Copyright © 2012 Bridgestone Corporation

2１．Business and Financial Performance for
1st Half of Fiscal 2012

Business Environment Surrounding Bridgestone Group
Estimated Tire Demand
Steady demand in Japan and N. America, andweaker demand in Europe

Currency Exchange
2011

Tire Demand for 2012 1st Half : Original Equipment
Passenger
Radial Tires(vs PY)

Truck and Bus
Radial Tires(vs PY)

Japan

152％

146％

N. America

119％116％Europe

90％

95％

2012

1sthalf

2ndhalf

1sthalf

US Dollar

827880Euro115108103

Yen appreciated against both the dollar and the euro incomparison with 2011

Raw Materials
Market trend of natural rubber and crude oil (Average)
Tire Demand for 2012 1st Half : Replacement

2011

Passenger
Radial Tires(vs PY)

Truck and Bus
Radial Tires(vs PY)

Japan

95％

86％

N. America

98％

91％

NaturalRubber<RSS#3>*(￠/kg)

Europe87％

71％

Crude Oil
<WTI>

* Demand numbers are estimated by Bridgestone Corporation.

(＄/ｂｂl)2012

1sthalf

2ndhalf

1sthalf

549413373989298*Source : Current Prices for Singapore Commodity Exchange Limited

NR price is in lower level in comparison with that of
1st half 2011, which was in historically high level.
Copyright © 2012 Bridgestone Corporation4

Highlights to Financial Results for 1st Half of Fiscal 2012
Increased both net sales and operating income vs. 2011 1st half
ConsolidatedResults(Net sales, Operating income)Results by
Business/Geographic
Segments

Raw material costs,
Price, and the “Lean andStrategic” initiatives>

Appreciated yen andlower sales volumes<Business Segments>
Increased sales and operating income in both Tire and Diversified Products.
<Geographic segments>
Increased sales and operating income in all segments except Europe.
Decreased sales and operating income due to lower sales volumes in Europe.

Reinforce
Fundamental
Competencies

Based on the “Lean” concept, steadily expanded production capacity by
product groups and operation areas with strong awareness of the optimum
production structures on Group/Global basis.

Balance Sheet
Cash FlowContinuous strict control of inventory and receivables brought positive freecash flow in 1st Half of Fiscal 2012.

Copyright © 2012 Bridgestone Corporation5Consolidated Results for 1st Half of Fiscal 2012
Yen/US dollar rate:

8280(2)

77

Yen/Euro rate:

115

103(12)

100(Yen in billions)（Ref. Feb16,2012
announcement）

2011 1st Half
Results

2012 1st Half
Results

VS PY (%)

2012 1st Half
Projections

1,459.1

1,488.9+2

1,520.0

Tires

1,221.2

1,237.5+1

1,270.0

Diversified
Products

245.1

260.4

+6260.0

Operating Income

93.6

133.7

+43118.0（Ratio） 6.4%

（Ratio）9.0%（Ratio）+2.7%（Ratio） 7.8%

Tires

89.7

119.6

+33107.0

Diversified
Products

3.8

14.0

+26711.0Ordinary Income

91.8

128.9+40110.0

Net Income

54.1

75.2+3970.0

Dividends

10 yen16 yen+6 yen

16 yenNet Sales

Copyright © 2012 Bridgestone Corporation

6Analysis of Consolidated Operating Income for 1st Half of Fiscal 2012

(Yen in billions)Price, Mix,
Volume etc.
+45.1

150

ForeignExch. Loss
△14.0

100

SGA
△8.0

Raw Depreciation
Materials+3.0
Strategic+17.0
Products
△3.0

133.7
50

93.6

Exchange rate
Sensitivity (full year)
1USD：3.7bil. Yen
1EUR：0.9bil. Yen0

2011 1st half
Operating Income+40.1

2012 1st half
Operating IncomeCopyright © 2012 Bridgestone Corporation

7

Financial Results for 1st Half of Fiscal 2012 : Geographic Segments(Yen in billions)（Ref. Feb 16,2012
announcement）

2011 1st HalfResults2012 1st HalfResults

VS PY
(%)

Japan

575.7

601.9

+5610.0

The Americas

632.5

661.7

+5650.0

Europe

206.7

175.2

(15)

190.0

Other Regions

347.3

348.4

+0360.0

Consolidated Net Sales

1,459.1

1,488.9+2

1,520.0

Japan

27.5

73.6

+16751.0

The Americas

37.0

51.9

+4039.0

Europe5.30.8(84)

8.0

Other Regions

26.2

27.0+328.0Consolidated Operating
Income93.6

133.7+43118.0

2012 1st HalfProjections* Figures within parentheses mean minus
Copyright © 2012 Bridgestone Corporation

8B/S Highlight
FY 2012 1st Half
(As of June 30, 2012)

vs Dec. 31, 2011

(Yen in billions)(Yen in billions)

2,789.1+111.7

Total Current Assets

1,405.1+81.4

Total Fixed Assets

1,383.9+30.2

Net Assets
Ratio of total equity to total assets (%)

1,252.5
43.5

+86.8
+1.3

Interest-Bearing Debt (Net)

474.4

+0.7

2012 1st HalfResults

vs. PY(Yen in billions)(Yen in billions)

99.2
73.1

+25.8
△4.8

Total Assets

Capital Expenditure
Depreciation

Copyright © 2012 Bridgestone Corporation

9２．Consolidated Projections for Fiscal 2012

Forecast of Business Environment Surrounding Bridgestone Group
Estimated Tire Demand for FY 2012

Currency Exchange

Continuing uncertainty in Europe, and continued steady
growth in Emerging countries.

2012
2nd half

2012
FYUSDollar

80

78

7977

Euro

103

95

99100

Tire Demand for FY 2012 : Original Equipment
Passenger
Radial Tires(vs PY)

Truck and Bus
Radial Tires(vs PY)

Japan

120%

123%

N. America

117%

110%

Europe92%

98%

Emergingcountries total*1Ref.
Feb16,2012
announcement2012
1st half

Projections

Yen appreciation against both dollar and Euro willcontinue.

Raw Materials
103%

146%

Tire Demand for FY 2012 : Replacement
Passenger
Truck and Bus
Radial Tires
Radial Tires(vs PY)(vs PY)
Japan

97%

99%

N. America

101%

93%

Europe90%

93%Emerging
countries total*1

112%

108%

*1:Total of Thailand, Indonesia, India, and China*2:Demand numbers are estimated by Bridgestone Corporation.

*Source : Current Prices for Singapore Commodity Exchange Limited

Copyright © 2012 Bridgestone Corporation

11Consolidated Projections for Fiscal 2012
Yen/US dollar rate:8079(1)

77

Yen/Euro rate:

11199(12)1002011 FYResults2012 FYProjections

VS PY (%)

2012 FY
Projections

3,024.3

3,130.0+33,240.0

Tires

2,539.7

2,620.0+32,720.0

Diversified
Products

500.5

520.0+4530.0

Operating Income

191.3

287.0

+50269.0（Ratio） 6.3%（Ratio） 9.2%（Ratio）+2.9%（Ratio） 8.3%

Tires

185.4

262.0

+41

247.0

Diversified
Products

5.8

25.0

+330

22.0

Ordinary Income

179.3

269.0+50250.0

Net Income

102.9

172.0+67168.0

Dividends

22 yen32 yen+10 yen32 yen(Yen in billions)

Net Sales（Ref. Feb 16,2012
announcement）

Copyright © 2012 Bridgestone Corporation

12

Analysis of Consolidated Operating Income for Fiscal 2012

(Yen in billions)Price, Mix,
Volume etc.
+68.6

300

StrategicRaw
Products
Materials
+12.0
+61.0

250
ForeignExch. Loss
△19.0 Depreciation

200

△1.0

SGA
△26.0

150

10050

287.0

191.3

Exchange rate
Sensitivity (full year)
1USD：3.7bil. Yen
1EUR：0.9bil. Yen02011
Operating Income

+95.6

2012
Operating Income
Copyright © 2012 Bridgestone Corporation13

Financial Projections for Fiscal 2012 : Geographic Segments(Yen in billions)（Ref. Feb 16,2012
announcement）

2011 FYResults2012 FYProjections

VS PY(%)

Japan

1,229.0

1,270.0+31,300.0

The Americas

1,288.6

1,350.0+51,360.0

Europe413.1

360.0(13)420.0

Other Regions

699.6

720.0+3770.0

Consolidated Net Sales

3,024.3

3,130.0+33,240.0

Japan

69.5

161.0

+131125.0

The Americas

61.9

88.0

+4273.0

Europe

11.3

6.0

(47)

16.0

Other Regions

48.2

56.0

+1665.0

Consolidated Operating
Income

191.3

287.0

+50269.0

2012 FYProjections

Copyright © 2012 Bridgestone Corporation14Initiatives to Achieve ROA 6% in 2012
(Yen in billions)

Drivers ofoperatingincome increase

MTP20112009⇒2012
increase2009⇒2012
increase
projections

Expansion ofstrategic
products+67.0

Reinforce
fundamental
competencies

vs.
MTP20112009⇒2011
results

2011⇒2012
projections

+63.0

+51.0

+12.0

94%

+46.0

+47.0

+34.0

+13.0

102%

Diversified
products
business

+33.0

+28.0

+10.0

＋18.0

85%

Unit increase,
etc.

+49.0

+73.0

+20.0

＋53.0

149%

Achieve ROA6%
Copyright © 2012 Bridgestone Corporation

15

Achieve ROA 6% in 2012

3.13.2◆3.0
2.91,9402.6
1,664

269.0億円

億円

757億円
2012 FYProjections<Reference>
Feb 16, 2012announcement
2012 FY Projections

Operating income ratio

2.9%

5.8%

6.3%

9.2%

8.3%

Net income ratio

0.0%

3.5%

3.4%

5.5%

5.2%

ROA

0.0%

3.6%

3.8%

Over 6%

Over 6%
Copyright © 2012 Bridgestone Corporation162012 2nd Half Key Points
Initiatives under the current business environment
 Implemented the global sourcing led by GLC (Global Logistic Center) Initiatives to create the “Lean” business structure Enhancement of the corporate governance system in terms of the Group andGlobal organization

Initiatives to establish future business fundamentals
 Make the most use of "Vertical and horizontal expansion" efficiency
 Strategy to effectively manage the raw materials factor in our business
operations in terms of both usage volume and cost Constructing the optimum sourcing structure Development, Roll-out and Expansion of New Business Models
 Strengthen Diversified Products Business Domains⇒Plan to be described in MTP2012
Copyright © 2012 Bridgestone Corporation17

Statements made in this presentation with respect to Bridgestone's current plans,estimates, strategies and beliefs and other statements that are not historical facts are forward-looking
statements about the future performance of Bridgestone. Forward-looking statements
include, but are not limited to, those statements using words such as "believe," "expect," "plans,""strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words ofsimilar meaning in connection with a discussion of future operations, financial performance,
events or conditions. From time to time, oral or written forward-looking statements may also be
included 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.

APPENDIX

Recent Announcement of Building of New Plants and Capacity Expansion of Existing Plants
GroupPSRPlant

U.S.A.

Aiken

PolandPoznan+5,600 by 2014 JanThailand

Nong Khae+13,500 by the end of 2014

Indonesia

Karawang+3,000 by 2012 1st half

India

Pune (New Plant)+10,000 by the end of 2020 *1

Wuxi+4,100 by 2013 1st half

Tianjin+8,800 by 2014 1st half

Vietnam

New Plant+24,700 by 2016 1st half *2

U.S.A.

Warren+900 by 2013 2nd half

Thailand

Chonburi+2,500 by 2014 1st half

Indore+400 by 2012 2nd half

Pune (New Plant)+3,000 by the end of 2020 *3

Stargard+1,350 by 2014 2nd half

Kitakyushu (3rd)+50 tons by 2013 1st half

Kitakyushu (3rd additional)+20 tons by 2014 1st half

Hofu

+12 tons by 2014 1Q

U.S.A.

New Plant+130 tons by 2020 1st half *4(*4 Plant to start by 2014 1st half)

ThailandNew Plant+85 tons by 2019 1st half *5(*5 Plant to start by 2015 1st half)

China

TBR

Increased capacity / dayCountryIndia
PolandJapan
ORR+4,750 by 2013 1Q+8,000 by 2015 3Q(*1 Plant to start by 2013 1st half)(*2 Plant to start by 2014 1st half)(*3 Plant to start by 2013 2nd half)

PSR： Passenger car radial tires
TBR： Truck and bus radial tires
ORR： Off-the-road radial tires for construction and mining vehicles
Copyright © 2012 Bridgestone Corporation