Consolidated Financial Statements
for the First Three Quarters of the Fiscal Year Ending December 31, 2016
November 9, 2016
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
Code number:5108
Representative: Masaaki Tsuya,

Stock exchange listings: Tokyo, Nagoya, Fukuoka
URL:http://www.bridgestone.com/
Member of the Board
CEO and Representative Executive Officer
Concurrently Chairman of the Board
Contact:
Naoki Hishinuma, Treasurer, General Manager
Telephone:+81-3-6836-3100
Scheduled date of quarterly securities report submission:
November 10, 2016
Scheduled date of dividend payment commencement:
Supplementary information for the quarterly financial statements to be prepared:
Yes
Meeting to explain for the quarterly financial statements to be held:Yes(for institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Three Quarters of Fiscal 2016 (January 1, 2016 - September 30, 2016)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales

Operating income

Yen in millions

Nine months ended
September 30, 2016
2,444,802
Nine months ended
September 30, 2015
2,817,330(Note) Comprehensive Income:%Yen in millions%

Yen in millions%

Yen in millions%(13.2)

329,425(13.0)

320,384(12.4)

183,057

(6.2)

5.7

378,64610.6
365,689
Nine months ended September 30, 2016
Nine months ended September 30, 2015

Net income
per share
Nine months ended
September 30, 2016
Nine months ended
September 30, 2015

Profit attributable toowners of parent

Ordinary income

7.9
195,120 (13.5)(¥71,873) million [ - %]¥127,020 million [(42.5%)]

Diluted net income
per share
Yen

Yen

233.72233.36249.13248.81(2) Consolidated Financial Position
Total assets

As of September 30, 2016
As of December 31, 2015
(Reference) Total equity

Ratio of total equity tototal assets

Net assets

Yen in millions

Yen in millions%

3,278,031
3,795,846

2,081,867
2,282,011
As of September 30, 2016
As of December 31, 2015

61.9
58.2
¥2,027,581 million¥2,209,068 million

2. Dividends
1st quarterend
FY 2015
FY 2016

2nd quarter
end

Annual Dividend
3rd quarter
end

Year -end

Total

Yen

Yen

Yen

Yen

Yen

－
－

60.00
70.00

－
－

70.00

130.0070.00

140.00FY 2016(Projection)(Note) Changes from the latest forecasts released: No

3. Consolidated Projected Results for Fiscal 2016 (January 1, 2016 - December 31, 2016)(Percentage figures represent changes from the previous year)
Profit attributable to
Net income
Operating income
Ordinary income
owners of parent
per share

Net sales
Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

FY 2016
3,340,000 (11.9)
453,000(Note) Changes from the latest forecasts released: No(12.4)

434,000(14.4)

257,000(9.6)

328.13

* Notes(1) Changes in principal subsidiaries during the nine months ended September 30, 2016 : No
(Changes in specified subsidiaries involving change in consolidation scope)(2) Application of special accounting treatments for consolidated quarterly financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting standards, etc. : Yes
2) Changes in accounting policy other than 1): No3) Changes in accounting estimates: No4) Restatements: No(4) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
September 30, 2016
813,102,321 shares
December 31, 2015
813,102,321 shares
2) Number of shares of treasury stock at period end
September 30, 2016
December 31, 2015

29,850,091 shares
29,878,493 shares

3) Average outstanding number of shares (during the first three quarters)
First Three Quarters ended September 30, 2016
783,236,067 sharesFirst Three Quarters ended September 30, 2015
783,198,855 shares* Implementation status about the quarterly review
Although these financial statements are exempt from quarterly review procedures as required by the Financial
Instruments and Exchange Act, a part of quarterly review based on Financial Instruments and Exchange Act
were completed at the time of the disclosure of these financial statements.
* 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
and unknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual
performance and financial results to differ substantially from management’s projections and plans, and thestatements are not guarantees of future business performance.

Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

[ Index ]1. Qualitative Information for the First Three Quarters of Fiscal 2016

…P2

(1) Explanation of Consolidated Operating Results…P2(2) Explanation of Consolidated Financial Position…P4(3) Explanation of Projections of Consolidated Results

…P4
…P5

2. Other Information (Notes)(1) Application of special accounting treatments for consolidated quarterly financial statements…P5(2) Changes in accounting policy, changes in accounting estimates, and restatements

…P5
…P6

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet…P6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…P8

Consolidated Statement of Income…P8

Consolidated Statement of Comprehensive Income…P9(3) Notes to the Consolidated Financial Statements…P10(Notes regarding going concern assumption)…P10(Notes regarding significant changes in the amount of shareholders’ equity)…P10(Segment Information)

…P10

1

Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

1. Qualitative Information for the First Three Quarters of Fiscal 2016
The Bridgestone Corporation is referred to as the “Company,” and the Company and its subsidiaries are referred
to as the “Companies.”(1) Explanation of Consolidated Operating Results
1) Sales and earnings
FY 2016 3Q(Nine months ended
September 30, 2016)

FY 2015 3Q(Nine months ended
September 30, 2015)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

2,444.8

2,817.3(372.5)(13)

Operating income

329.4

378.6

(49.2)(13)

Ordinary income

320.3

365.6

(45.3)(12)

Profit attributable to owners of parent

183.0

195.1

(12.0)(6)

Net sales

In the first three quarters of fiscal 2016 (January 1 to September 30, 2016), the operating environment
surrounding Companies was as follows: the Japanese yen had been strong and unclear situation continued dueto the upsurge of uncertainty of the global economy while the Japanese domestic economy continued gradual
recovery. The United States economy continued recovery supported by an increase in consumer spending. The
outlook of European economy has increased uncertainty. In Asia, the Chinese economic growth remained slow.
Overall, overseas economies were gradually recovering but still weak while the political and economic situation
remained unstable because of the issues of the UK leaving the EU, etc. In addition, tire demand for mining
vehicles decreased by lower commodity prices.
Under these operating conditions, the Companies continued their work to realize the ultimate goal of becoming“a truly global company” and achieving “Dan-Totsu in all aspects of our business.” Stepping up efforts on a global
scale, the Companies were working harder than ever to advance brand strategy through Olympic TOP Partnerand Select Paralympic Partnerships, anticipate market trends and competitors’ movements, as well as enhance
technologies and promote innovation to increase the sales of highly competitive products and services, andbuilding and enhancing business models to extend beyond solely sales of products. Moreover, the Companies
were continuing to implement a range of measures for management reforms. In the first three quarters of fiscal
2016, the Companies were promoting reform of governance system and implementing a variety of measures torealize more effective utilization of management resources with appropriate expenses.
As a result of the appreciation of Japanese yen and the decrease of unit sales, net sales in the first threequarters of fiscal 2016 were ¥2,444.8 billion, a decrease of 13% from the first three quarters of fiscal 2015;
operating income was ¥329.4 billion, a decrease of 13%, ordinary income was ¥320.3 billion, a decrease of 12%;and profit attributable to owners of parent was ¥183.0 billion, a decrease of 6%.

2

Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

2） Segment Information

Tires

Net Sales

FY 2016 3Q

FY 2015 3Q(Nine months ended
September 30, 2016)(Nine months ended
September 30, 2015)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

2,013.0

2,358.4(345.3)(15)

Operating income

300.3

345.9

(45.5)(13)

Diversified
Products

Net Sales

442.5

474.3

(31.8)(7)

Operating income

29.0

32.7

(3.7)

(11)

Consolidated
Results

Net Sales

2,444.8

2,817.3(372.5)

(13)

329.4

378.6

(49.2)(13)

Operating income

In the tire segment, the Companies worked to maximize sales momentum by introducing appealing new
products globally, reinforcing fundamental competencies, and responding promptly to demand fluctuation in eachregion.
In Japan, the unit sales of tires for passenger cars and light trucks remained unchanged from the first threequarters of fiscal 2015 and the unit sales of tires for trucks and buses increased firmly compared to the first threequarters of fiscal 2015. In the Americas, the unit sales of tires for passenger cars and light trucks in North
America increased firmly and the unit sales of tires for trucks and buses decreased compared to the first threequarters of fiscal 2015 due to a decrease in the sales of original equipment tires. In Europe, the unit sales of tires
for passenger cars and light trucks increased strongly and the unit sales of tires for trucks and buses increased
steadily compared to the first three quarters of fiscal 2015. In China and Asia Pacific, the unit sales of tires forpassenger cars and light trucks increased strongly and the unit sales of tires for trucks and buses increased
steadily compared to the first three quarters of fiscal 2015. In the specialty tire business, sales of large andultra-large off-the-road radial tires for construction and mining vehicles were down year on year due to adecrease of demand stemming from tire inventory adjustments at mines.
As a result of the tires sales above and the appreciation of Japanese yen, net sales in the tires segment during
the first three quarters of fiscal 2016 were ¥2,013.0 billion, a decrease of 15% from the first three quarters offiscal 2015; operating income was ¥300.3 billion, a decrease of 13%.
In the diversified products segment, net sales were ¥442.5 billion, a decrease of 7% from the first three quartersof fiscal 2015 and operating income was ¥29.0 billion, a decrease of 11% from the first three quarters of fiscal
2015 due to a decrease in the profit of domestic business.
(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.

3

Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

(2) Explanation of Consolidated Financial Position
Assets, liabilities, and net assets positions at the end of the first three quarters of fiscal 2016 were as follows.
(Assets)
In assets, notes and accounts receivable, tangible fixed assets, and investments in securities decreased ¥96.7
billion, ¥202.0 billion, and ¥66.7 billion respectively. As a result, assets decreased ¥517.8 billion compared with theend of the previous fiscal year, to ¥3,278.0 billion.
(Liabilities)
In liabilities, while short-term borrowings increased ¥53.1 billion, accounts payable-other, long-term borrowings,
and net defined benefit liability decreased ¥61.5 billion, ¥125.4 billion, and ¥69.6 billion respectively. As a result,liabilities decreased ¥317.6 billion compared with the end of the previous fiscal year, to ¥1,196.1 billion.
(Net assets)
In net assets, while profit attributable to owners of parent was ¥183.0 billion, cash dividends paid were ¥109.6
billion, and net unrealized gain on available-for-sale securities and foreign currency translation adjustments
decreased ¥44.9 billion and ¥238.8 billion respectively. As a result, net assets decreased ¥200.1 billion comparedwith the end of the previous fiscal year, to ¥2,081.8 billion.
Due to a decrease of assets by ¥517.8 billion, the ratio of total equity to total assets increased 3.7% comparedwith the end of the previous fiscal year, to 61.9%.

(3) Explanation of Projections of Consolidated Results
There are no changes in consolidated projections announced on August 9, 2016.

4

Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

2. Other Information (Notes)(1) Application of special accounting treatments for consolidated quarterly financial statements(Calculation for income tax expense)
Income tax expense was calculated based upon an estimated effective tax rate for fiscal 2016.
(2) Changes in accounting policy, changes in accounting estimates, and restatements
Changes in accounting policy(Application of Accounting Standard for Business Combinations, etc.)
The Company has applied the “Accounting Standard for Business Combinations” (Accounting Standards
Board of Japan (ASBJ) Statement No. 21, September 13, 2013), the “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, September 13, 2013), the “Accounting Standard for Business
Divestitures” (ASBJ Statement No. 7, September 13, 2013) and other relevant standards from the first quarterof fiscal 2016. As a result, the difference arising from changes in ownership interests in its subsidiary when the
Companies continue to have control of the subsidiary is accounted for as capital surplus, andacquisition-related costs are treated as expenses in the consolidated fiscal year in which they occurred. Also,
for any business combinations on or after the beginning of the first quarter of fiscal 2016, the adjustments ofthe purchase price allocation following the determination of the provisional accounting treatment are reflectedin the quarterly consolidated financial statements for the quarter in which the business combination occurred.
In addition, the presentation of net income has been changed, and the presentation of minority interests has
been changed to non-controlling interests. To reflect these changes in presentation, the quarterly consolidated
financial statements for the first three quarters of the previous fiscal year and consolidated financial
statements for the previous fiscal year have been reclassified.
In accordance with the transitional treatment provided in Paragraph 58-2 (4) of the Accounting Standard forBusiness Combinations, Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial
Statements, and Paragraph 57-4 (4) of the Accounting Standard for Business Divestitures, these accounting
standards have been applied from the beginning of fiscal 2016 and thereafter.
There is no effect on the consolidated statement of income.

(Application of Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements)
The Company has applied the “Practical Solution on Unification of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements” (Practical Issues Task Force (“PITF”) No. 18, March 26,2015) from the first quarter of fiscal 2016. In accordance with the transitional treatment provided in PITF No.
18, the overseas subsidiary “BRIDGESTONE HOSE AMERICA INC.” amortizes goodwill for which it has
selected amortization treatment based on Financial Accounting Standards Board (“FASB”) AccountingStandards Codification, Topic 350, “Intangible-Goodwill and Other” using the remaining amortization period of
goodwill on the consolidated financial statements.
There is no effect on the consolidated statement of income.

5

Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
FY 2015(As of December 31, 2015)

FY 2016 3Q(As of September 30,2016)

Cash and deposits

387,652

354,201

Notes and accounts receivable

488,832

392,044

Short-term investments

217,348

151,836

Merchandise and finished products

370,046

356,529Work in process

35,87734,881

Raw materials and supplies

149,815

129,114

Other

192,340

172,413

Allowance for doubtful accounts(33,357)(13,688)

1,808,557

1,577,332

Buildings and structures, net

537,244483,286

Machinery, equipment and vehicles, net

523,389451,265

Other, net

443,257

367,284

1,503,891

1,301,836

68,38864,297

Investments in securities

299,129

232,360

Other

121,760

106,213

Allowance for doubtful accounts(5,880)(4,009)Total Investments and Other Assets

415,009334,564

Total Fixed Assets

1,987,289

1,700,699

Total Assets

3,795,846

3,278,031

AssetsCurrent Assets

Total Current Assets
Fixed Assets
Tangible fixed assets

Total Tangible Fixed Assets
Intangible fixed assets
Investments and other assets

6Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

(Yen in millions)
FY 2015(As of December 31,2015)

FY 2016 3Q(As of September 30,2016)

Notes and accounts payable

181,973

173,828

Short-term borrowings

125,908

179,042

Current portion of bonds

30,000

Lease obligations

1,137

―
963

Income taxes payable

50,523

12,682

Provision for recall

1,196

1,001

Accounts payable - other

164,491

102,911

Other

279,883

244,807

Total Current Liabilities

835,114715,235

Bonds

90,00090,000Long-term borrowings

188,275

62,840Liabilities
Current Liabilities

Long-term Liabilities

Lease obligations

6,256

5,481

Net defined benefit liability

259,521

189,879

Other

134,668

132,727

Total Long-term Liabilities

678,720

480,928

1,513,835

1,196,164

126,354

126,354

Total Liabilities
Net Assets
Shareholders' Equity
Common stock
Capital surplus
Retained earnings
Treasury stock - at cost
Total Shareholders’ Equity

123,025

123,0092,014,497

2,087,484(56,212)(56,160)

2,207,664

2,280,687

192,324

147,399

Accumulated Other Comprehensive Income
Net unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative instruments

(776)

(547)

Foreign currency translation adjustments(55,406)(294,224)

Remeasurements of defined benefit plans
Total Accumulated Other Comprehensive
Income(134,736)(105,733)

1,404(253,105)

2,469

3,033

Stock Acquisition Rights
Non-controlling Interests

70,473

51,252

Total Net Assets

2,282,011

2,081,867

Total Liabilities and Net Assets

3,795,846

3,278,031

7

Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
First Three Quarters(Yen in millions)
FY 2015 3Q

FY 2016 3Q(Nine months ended(Nine months ended

September 30, 2015)

September 30, 2016)

Net Sales

2,817,330

2,444,802

Cost of Sales

1,709,514

1,437,975

Gross Profit

1,107,816

1,006,827

Goods freightage expenses

119,561

109,063

Advertising and promotion expenses

94,52886,051

Salaries, allowances and bonuses

199,491

184,319

Retirement benefit expenses

18,891

14,125

Depreciation

23,977

23,335

Research and development expenses

70,01871,097

Other

202,700

189,408

Total Selling, General and
Administrative Expenses

729,169

677,401

Operating Income

378,646

329,425

Interest income

4,262

3,215

Dividend income

6,508

6,382

―

4,769

Other

14,912

9,009

Total Non-operating Income

25,68323,376

Interest expense

9,497

7,967

Foreign currency exchange loss

8,076

10,193

Other

21,066

14,256

Total Non-operating Expenses

38,64032,418

Ordinary Income

365,689

320,384

Gain on sales of investment securities

13,631―

Total Extraordinary Income

13,631――

17,649Loss on deconsolidation of a subsidiary

42,348―

Total Extraordinary Loss

42,34817,649

Income before Income Taxes andNon-controlling Interests

336,972

302,735

Income Taxes

133,210

112,454

Income before Non-controlling Interests

203,761

190,280

Profit Attributable to Non-controlling
Interests

8,640

7,223

Profit Attributable to Owners of Parent

195,120

183,057

Selling, General and Administrative Expenses

Non-operating Income

Gain on sales of investment securities

Non-operating Expenses

Extraordinary Income

Extraordinary Loss
Loss related to reorganization of R&D
and manufacturing base8

Bridgestone Corporation (5108)

First three quarters results of fiscal 2016

Consolidated Statement of Comprehensive Income
First Three Quarters(Yen in millions)
FY 2015 3Q(Nine months ended

FY 2016 3Q(Nine months ended

September 30, 2015)

September 30, 2016)

203,761

190,280

Unrealized gain (loss) on available-for-salesecurities

6,301(44,908)

Deferred gain (loss) on derivative
instruments

1,630

461

Foreign currency translation adjustments(93,741)(244,257)

Remeasurements of defined benefit plans

11,844

28,832

Share of other comprehensive income inaffiliates(2,775)(2,281)

Total Other Comprehensive Income(76,740)(262,154)

127,020(71,873)

126,073(71,453)

946

(420)

Income before Non-controlling Interests
Other Comprehensive Income (loss)

Comprehensive Income
Comprehensive income attribute to:
Owners of parent
Non-controlling interests

9Bridgestone Corporation (5108)

First three quarters results of fiscal 2016(3) Notes to the Consolidated Financial Statements(Notes regarding going concern assumption)
Not applicable(Notes regarding significant changes in the amount of shareholders’ equity)
Not applicable(Segment Information)
Information about Sales and Income (Loss) by reportable segment
FY 2015 First Three Quarters (Nine months ended September 30, 2015)
Diversified
Products

Tires
Net sales:
External customers
Inter-segment
Total
Segment income(Operating income)

Total

2,354,025
4,404
2,358,430

463,305
11,071
474,376

2,817,330
15,4752,832,806

345,919

32,762

378,682(Yen in millions)
Adjustments(Note)

Consolidated―(15,475)(15,475)

2,817,330―
2,817,330(35)

378,646(Note) Adjustments of segment income refer to elimination of intersegment transactions.

FY 2016 First Three Quarters (Nine months ended September 30, 2016)
Diversified
Products

Tires

Total

(Yen in millions)
Adjustments

Consolidated(Note)Net sales:
External customers
Inter-segment
Total
Segment income(Operating income)―

2,008,284

436,518

2,444,802

4,756

6,007

10,764(10,764)―

2,013,040

442,525

2,455,566(10,764)2,444,802

300,395

29,016

329,41114

329,425(Note) Adjustments of segment income refer to elimination of intersegment transactions.

10

2,444,802