Financial Results for Fiscal 2015

Bridgestone Corporation
February 17, 2016

Contents

1. Business and Financial Performancefor Fiscal 2015

P. 3

2. Consolidated Projections for Fiscal 2016

P. 9Copyright © 2015 Bridgestone Corporation | Feb.17, 20152

1. Business and Financial Performancefor Fiscal 2015

Business Environment Surrounding Bridgestone Group in 2015
◆ Currency Exchange◆ Estimated Tire Demand
Tire Demand for 2015 : Original Equipment (VS 2014)
Passenger
Radial Tires

2015

Truck and Bus
Radial Tires

Japan

95％

100％

N. America

104％

108％

Europe105％

107％

Asia *1

104％

100％(Ref.)
Fiscal2014

1sthalf

2ndhalfFullYear

US Dollar

120122

121

106

Euro

134

135

134

140

◆ Raw Materials
Tire Demand for 2015 : Replacement (VS 2014)
Passenger
Radial Tires

Market trend of natural rubber and crude oil (Average)

Japan

96％

95％

N. America

101％

105％

Europe103％

104％

Asia *1103％

2015

Truck and Bus
Radial Tires

103％*1 Total of Thailand, Indonesia, India, and China

1sthalf

2ndhalf

FullYear

Natural Rubber<TSR20>*(￠/kg)

146

127

136

170

Natural Rubber<RSS#3>*(￠/kg)

175

135

155

194

Crude Oil*source<WTI> : Singapore Commodity Exchange Limited 期近市況価格参照(＄/ｂｂl)53* The numbers of demand are estimated by Bridgestone Corporation(Ref.)
Fiscal
2014

4448

92

*Source : Current Prices for Singapore Commodity Exchange LimitedCopyright © 2015 Bridgestone Corporation | Feb.17, 20154

Consolidated Results for Fiscal 2015
Yen/US Dollar rate:

106

121

+15

121

Yen/Euro rate:

140134

(6)

134

2014
Results

2015
Results

VS PY (%)

Net Sales

3,673.9

3,790.2+3

Tires

3,093.3

3,174.4+3

Diversified
Products

601.8

635.0

+6

478.0

517.2

+8524.0（Ratio） 13.0%（Ratio） 13.6%（Ratio）+0.6%（Ratio） 13.4%

Tires

435.8472.7+8

DiversifiedProducts

42.1

44.5+6

Ordinary Income

463.2

507.3

+10

Extraordinary Loss (Gain)(14.5)

29.1＋Net Income

300.5

284.2

(5)

285.0

Dividends per Share

100 yen

130 yen+30 yen

120 yen(Yen in billions)Operating Income*Figures within parentheses mean minus（ReferenceNov. 9, 2015
announcement）

2015 Projections

3,900.0

506.0

Copyright © 2015 Bridgestone Corporation | Feb.17, 2015

5

Analysis of Consolidated Operating Income for Fiscal 2015
(Yen in billions)

500

450

517.2

400
478.0

Raw
Materials+121.0350
Price, Mix,
Volume etc.
(128.8)300

2014
Operating Income

SGA(12.0)

Depreciation(1.0)

StrategicProducts+5.0+39.2

ForeignExch. Gain
+55.0

2015
Operating Income*Figures within parentheses mean minus
Copyright © 2015 Bridgestone Corporation | Feb.17, 2015

6

Financial Results for Fiscal 2015 : Geographic Segments(Yen in billions)（ReferenceAug 7, 2015
announcement）

2014
Results

2015
Results

VS PY (%)

2015 Projections

Japan

1,264.9

1,187.8(6)

1,220.0

The Americas

1,768.1

1,941.6+10

1,980.0

Europe

439.2

421.7

(4)

420.0

Other Regions

841.5

838.0

－880.0Consolidated
Net Sales

3,673.93,790.2+33,900.0

Japan

210.1

197.4(6)209.0

The Americas

180.2

222.5+23224.0

Europe20.3

21.4+521.0

Other Regions

66.8

68.2+276.0

Consolidated Operating
Income478.0

517.2+8524.0*Figures within parentheses mean minus
Copyright © 2015 Bridgestone Corporation | Feb.17, 2015

7

B/S and C/F Highlights for Fiscal 2015
(Yen in billions)

FY 2014

FY 2015(As of Dec. 31, 2014)(As of Dec. 31, 2015)

VS. Dec. 31, 2014

Total Assets

3,960.9

3,795.8(165.0)Total Equity Ratio oftotal equity to total assets (%)

2,146.6
52.4

2,282.0
58.2+135.3+5.8

Interest-Bearing Debt (Net)202.8

14.8(187.9)

FY 2014

FY 2015

428.6

553.9

+125.3(305.6)(233.3)+72.3

Free Cash Flow

122.9

320.5

+197.6

Capital Expenditure
Depreciation

296.3
188.3

253.5
202.3

(42.8)+14.0

ROA （％）

8.0

7.3(0.6)

ROE （％）

15.5

13.3(2.2)

Cash Flow by Operating
Activities
Cash Flow by Investing
Activities*Figures within parentheses mean minus

VS. PY

Copyright © 2015 Bridgestone Corporation | Feb.17, 201582. Consolidated Projections for Fiscal 2016

Business Environment Surrounding Bridgestone Group in 2016
◆ Estimated Tire Demand◆ Currency Exchange

Tire Demand for 2016 : Original Equipment (VS 2015)
Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan101％

103％

N. America

100％94％

Europe101％

97％

Asia *199％

115％

2014

2015

2016

US Dollar

106

121

115

Euro

140

134

127

◆ Raw Materials

Tire Demand for 2016 : Replacement(VS 2015)
Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan103％

103％

N. America

100％

103％

Europe96％

98％

Asia *1111％

105％*1 Total of Thailand, Indonesia, India, and China* The numbers of demand are estimated by Bridgestone Corporation*Source : Singapore Commodity Exchange Limited
Copyright © 2015 Bridgestone Corporation | Feb.17, 2015

10Consolidated Projections for Fiscal 2016
Yen/US Dollar rate:

121115(6)Yen/Euro rate:

134127(7)2015
Results2016
ProjectionsVS PY(%）

Net Sales

3,790.2

3,750.0△1Tires

3,174.4

3,100.0△2

Diversified
Products

635.0

650.0+2517.2

520.0+1（Ratio）13.6%（Ratio） 13.9%（Ratio） +0.2%

Tires

472.7

469.0(1)Diversified
Products

44.5

51.0+15

Ordinary Income

507.3

487.0

(4)

Profit Attributable toOwners of Parent284.2

309.0+9

Dividends per Share

130 yen

140 yen+10 yen(Yen in billions)Operating Income*Figures within parentheses mean minus

Copyright © 2015 Bridgestone Corporation | Feb.17, 201511

Analysis of Consolidated Operating Income for Fiscal 2016
(Yen in billions)Exchange rate
Sensitivity (full year)525

USD：3.2bil. Yen
EUR：0.3bil. Yen

500

475
517.2

ForeignExch. Loss(41.0)

520.0
Raw
Materials
+62.0

450

425

Price, Mix,
Volume etc.
+16.7

SGA(40.0)
Depreciation(19.0)

4002015
Operating Income+2.7

StrategicProducts+24.02016
Operating Income*Figures within parentheses mean minus
Copyright © 2015 Bridgestone Corporation | Feb.17, 201512

Financial Projections for Fiscal 2016 : Japan
Key points in 2016
• Stronger Japanese yen• Raw Material Index clauses• Pre-buy demand before consumption
tax increase in 2H• Decrease mining tire sales in 1H• Sales growth with profit increase inDiversified Products business2016 Tire Sales (REP+OE, unit base, vs.PY%)(Yen in billions)

2015
Results

2016
Projections

VS. PY(%)

Net Sales

1,187.8

1,180.0(1)Operating
Income197.4

175.0

(11)

OP%

16.6％

14.8％

(1.8%)

Passenger
Radial Tires+6%～+10%

Truck and Bus
Radial Tires～+5%

Ultra-large ORR Tires (*1)
Large ORR Tires (*1)

around ±0%+5%(*1) Off-the-Road Radial Tires for Construction and Mining Vehicles(Consolidated rubber weight base , including Original Equipment sales)*Figures within parentheses mean minus
Copyright © 2015 Bridgestone Corporation | Feb.17, 201513

Financial Projections for Fiscal 2016 : Americas
Key points in 2016
• Stronger Japanese yen,weaker LA currencies• New ProductsPassenger: SUV, Fuel efficiency tire
Truck and Bus: ECOPIA etc.
• Increase sales volume,
Improve conversion cost

(Yen in billions)

2015
Results

2016
ProjectionsVS. PY(%)

Net Sales

1,941.6

1,870.0(4)OperatingIncome222.5

241.0

+8OP%

11.5％

12.9％

+1.4%

2016 Tire Sales (REP+OE, unit base, vs.PY%)
Passenger～+5%
Radial Tires
NorthAmerica
Truck and Bus+6%～+10%
Radial Tires*Figures within parentheses mean minus
Copyright © 2015 Bridgestone Corporation | Feb.17, 201514

Financial Projections for Fiscal 2016 : EMEA
Key points in 2016
• Transformation• Increase Sales and profit w/oimpact of scope change.
(Including Middle East & Africa.)• New ProductsPassenger: RFT new product, etc.
• Increase sales volume,
Improve conversion cost

(Yen in billions)

2015Results

2016
Projections

VS. PY(%)

Net Sales

421.7

530.0

N/A

Operating
Income

21.4

32.0

N/A

OP%

5.1％

6.0％

N/A

2016 Tire Sales (REP+OE, unit base, vs.PY%)
Passenger+6%～+10%
Radial Tires
EuropeTruck and Bus+6%～+10%
Radial Tires*1 At the beginning of fiscal year 2016, “Middle East & Africa” formerly included in the “Other regions” segment wastransferred to the “EMEA” segment as the result of the restructuring of the tire business SBUs.
Copyright © 2015 Bridgestone Corporation | Feb.17, 201515

Financial Projections for Fiscal 2016 : Other Regions
Key points in 2016
• Stronger Japanese yen• Increase profit w/o impact ofscope change.
• Increase sales volume,
Improve conversion cost
• Asia: Moderate recovery• China: Growth driven by Passenger
Tire Rep sales(Yen in billions)

2015
Results

2016
Projections

VS. PY(%)

Net Sales

838.0

710.0

N/A

Operating
Income

68.2

81.0

N/A

OP%

8.1％

11.4％

N/A

2016 Tire Sales (REP+OE, unit base, vs.PY%)
Passenger+6%～+10%
AsiaRadial Tires
Pacific
Truck and Bus
China+16%～+20%
Radial Tires*1 At the beginning of fiscal year 2016, “Middle East & Africa” formerly included in the “Other regions” segment wastransferred to the “EMEA” segment as the result of the restructuring of the tire business SBUs.
Copyright © 2015 Bridgestone Corporation | Feb.17, 201516

Trend of Net Sales, Operating Income, ROA, ROE

Copyright © 2015 Bridgestone Corporation | Feb.17, 201517

Trend of Dividend・Pay Out Ratio(＊)＊excluding Loss on deconsolidation of a subsidiary
Copyright © 2015 Bridgestone Corporation | Feb.17, 201518

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 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.