Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

Consolidated Financial Statements for the Fiscal Year Ended December 31, 2011
February 16, 2012
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, Osaka, Nagoya, Fukuoka
Code number:5108
URL:http://www.bridgestone.co.jp
Representative: Shoshi Arakawa, Chairman of the Board, CEO and President
Contact:
Takehisa Kichise, Treasurer, General Manager
Telephone:+81-3-3563-6985
Scheduled date of annual shareholders’ meeting:March 27, 2012
Scheduled date of securities report submission:
March 27, 2012
Scheduled date of dividend payment commencement:
March 28, 2012
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 2011
(January 1, 2011 - December 31, 2011)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales

Operating income

Yen in millions%

3,024,355
2,861,615

5.7
10.2

Fiscal 2011
Fiscal 2010

Yen in millions%

191,32114.9
166,450 119.8
Fiscal 2011
Fiscal 2010

(Reference) Comprehensive Income:Net income
per share

Ordinary income

Diluted net income
per share
Yen

Fiscal 2011131.56
Fiscal 2010
126.19(Reference) Equity in earnings of affiliates:

Net income

Yen in millions

Yen in millions%

179,31721.2
102,970
147,905 171.6
98,913¥ 7,395 million (decrease of 90.3%)¥76,093 million

4.1－

Net return on Total
equity%Ordinary income/ Total assets

Operating income
margin

Yen

%

%

%

131.50126.16
Fiscal 2011
Fiscal 2010

9.1
8.9
¥1,611 million¥1,476 million

6.7
5.4

6.3
5.8

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

2,677,344
2,706,639

1,165,673
1,176,147
Fiscal 2011
Fiscal 2010

42.2
42.2

1,444.53
1,458.01

Fiscal 2011
Fiscal 2010
(Reference) Total equity¥1,130,577 million¥1,141,128 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

152,157
247,736(177,079)(170,556)(50,074)(82,528)

128,840
216,924

Fiscal 2011
Fiscal 2010

2. Dividends
1stquarterend

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

Yen

Fiscal 2010
Fiscal 2011
Fiscal 2012
(Projection)

Yen

Yen

Total

Dividends
Pay-out
ratio(Consolidated)

Total
dividends

Ratio ofdividends
to total equity(Consolidated)

Yen

Yen

Yen in millions

%

%

－
－

10.00
10.00

－
－

10.00
12.00

20.00
22.00

15,67017,218

15.8
16.7

1.4
1.5

－

16.00

－

16.00

32.00

14.9

3. Consolidated Projected Results for Fiscal 2012 (January 1, 2012 - December 31, 2012)(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 2012

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

1,520,000
3,240,000

4.2
7.1

118,000
269,000

26.0
40.6

110,000
250,000

19.7
39.4

70,000168,000

29.4
63.2

89.44
214.65

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

4. Others(1) Significant changes in subsidiaries during period(changes in specified subsidiaries involving change in consolidation scope): No(2) Changes in accounting principles, procedures, method of presentation associated with preparation of theconsolidated financial statements
1) Changes due to revisions of accounting standards etc. : Yes
2) Changes other than 1): No(Note) For details, refer to “Changes in accounting principles” on page 22.
(3) Outstanding number of shares (common stock)
1) Outstanding number of shares at term end (including treasury stock):
December 31, 2011
813,102,321 shares
December 31, 2010
813,102,321 shares
2) Number of shares of treasury stock at term end
December 31, 2011
December 31, 2010

30,441,046 shares
30,439,281 shares

3) Average outstanding number of shares (during the fiscal year)
December 31, 2011
782,662,118 shares
December 31, 2010
783,818,142 shares(Note)Refer to “Per share information", on page 32, for number of shares that is basis for calculating net
income per share.
(Reference) Summary of Non-consolidated Results(January 1, 2011 - December 31, 2011)(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%

971,255
895,623

8.4
19.5

56,43558,490

(3.5)
385.2

66,28767,441

(1.7)
194.9

33,87950,331(32.7)
226.6

Fiscal 2011
Fiscal 2010

Net income
per share
Fiscal 2011
Fiscal 2010

Diluted net income
per share
Yen

Yen

43.29
64.21

43.27
64.19

(2) Non-consolidated Financial Position
Total assets
Fiscal 2011
Fiscal 2010
(Reference) Total equity

Net assets

Ratio of total equity tototal assets

Total equity per share

Yen in millions

Yen in millions%

Yen

1,603,172
1,664,467

1,155,491
1,143,880
Fiscal 2011
Fiscal 2010

72.0
68.7

1,475.37
1,460.86¥1,154,720 million¥1,143,365 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
1. 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 results to differ substantially from management’s projections and plans. For further details,
please see page 4, “Projections for fiscal 2012.”
2. Information about Bridgestone Corporation (the “Company”) and certain of its subsidiaries’ alleged cartel
activities regarding the sale of marine hoses and improper monetary payments is included on page 8,“3.Management Policies, (2) Management Strategies and Tasks” and page 23, “4.Consolidated Financial
Statements, Additional information”

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

[ Index ]…P2

1. Operating Results(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 2011 and 2012

…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…P11(1) Consolidated Balance Sheet…P11(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income…P13

Consolidated Statements of Income…P13

Consolidated Statements of Comprehensive Income…P14(3) Consolidated Statements of Changes in Net Assets…P15(4) Consolidated Statements of Cash Flows…P17(5) Notes regarding going concern assumption…P19(6) Basic important matters for preparation of consolidated financial statements…P19(7) Changes in accounting principles…P22(8) Changes in presentation…P22(9) Additional Information…P23(10) Notes to the consolidated financial statements…P24(Consolidated Balance Sheet)…P24(Consolidated Statements of Income)…P25(Consolidated Statement of Comprehensive Income)…P26(Consolidated Statements of Changes in Net Assets)…P27(Consolidated Statements of Cash Flows)…P29(Segment Information)…P30(Per share information)(Significant subsequent events)

…P32
…P33
…P34

5. Other…P34(1) Senior Management Changes

1Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

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 2011]
1) Sales and earnings
Fiscal 2011

Increase(Decrease)

Fiscal 2010

Yen in billions

Yen in billions

Yen in billions%

3,024.3

2,861.6

162.7

6

Operating income

191.3

166.4

24.8

15

Ordinary income

179.3

147.9

31.4

21

Net income

102.9

98.9

4.0

4

Net sales

In fiscal 2011(January 1 to December 31, 2011), the Companies’ operating environment was plagued by raw
material prices remaining at relatively high levels and the appreciating Japanese yen. Despite these challenges,
the domestic economy showed signs of recovery, in spite of the impact of the Great East Japan Earthquake on
March 11, 2011. While the United States economy was gradually recovering, and the business climate in Europe
was showing signs of slight recovery, the recovery trend for both the United States and Europe was weakening.
In Asia, the recovery or expansion continued to accelerate, particularly in China and India.
Under these operating conditions, the Companies continued working to achieve the goal of becoming theWorld’s undisputed No. 1 tire and rubber company in both name and reality. Stepping up our efforts on a global
basis, the Companies focused on increasing the sales of highly competitive products, strengthening supply
capacity, improving manufacturing productivity, enhancing technology and effectively utilizing our management
resources. Moreover, within an operating environment that is evolving at an unprecedented speed, including thechanging structures for demand and competition, the Companies have been striving to rapidly implement a
range of initiatives to enhance our ability to respond quickly to market trends, increase the sales of strategic
products, construct and enhance a business model that will extend beyond the mere sale of products, anddevelop eco-friendly products and businesses. Additionally, the Companies have implemented price increases to
respond to the rising prices of raw materials. The Companies also suffered as a result of the Great East Japan
Earthquake, however, the Companies strived to implement all the initiatives to minimize the impact of thedisaster to the Companies’ business results while also providing necessary products and services required fordisaster recovery.
As a result, net sales in fiscal 2011 was ¥3,024.3 billion, an increase of 6% over fiscal 2010, operating income
was ¥191.3 billon, an increase of 15%, ordinary income was ¥179.3 billion, an increase of 21% and net income
was ¥102.9 billion, an increase of 4%.

2

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

2) Segment Information(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating
the consolidated results.
a) By business segment
Fiscal 2011

Increase(Decrease)

Fiscal 2010

Yen in billions

Yen in billions

Yen in billions%

2,539.7

2,379.5

160.2

7Operating income

185.4

153.1

32.3

21

Diversified
Products

Net Sales

500.5

494.6

5.8

1

5.8

13.3

(7.5)

(57)

Consolidated
Results

Net Sales

3,024.3

2,861.6

162.7

6

191.3

166.4

24.8

15

Net Sales
Tires

Operating income

Operating income

In the tire segment, the Companies worked to maximize sales momentum by introducing appealing new products
worldwide, particularly those that have been identified as strategic and important to the Companies’ future growth.
The Companies also revised product prices in response to the rising cost of raw materials.
In Japan, unit sales of replacement tires for passenger cars and light trucks increased over fiscal 2010. However,from the decline in vehicle production volume due to the Great East Japan Earthquake, unit sales of tires for new
vehicles were substantially down from fiscal 2010. The unit sales of tires for trucks and buses increased. In theAmericas, the unit sales of passenger and light truck tires in North America decreased compared to fiscal 2010 due
to a decline in the sales of replacement tires. However, there was steadily an increase from 2010 in unit sales ofstrategic products such as runflat tires, UHP (ultra-high-performance) tires and winter tires in the replacement
market. Additionally, unit sales of tires for trucks and buses grew significantly. In Europe, unit sales of tires forpassenger cars and light trucks remain unchanged from fiscal 2010. However, there was an increase from 2010 inunit sales of strategic products such as runflat tires and winter tires in the replacement market. Unit sales of tires
for trucks and buses decreased compared to fiscal 2010 due to a decline in the sales of replacement tires. In thespecialty tire business, unit sales of large and ultralarge off-the-road radial tires for construction and mining
vehicles significantly exceeded those of fiscal 2010.
As a result, net sales and operating income in the tire segment during fiscal 2011 totaled ¥2,539.7 billion and¥185.4 billon, an increase of 7% and 21% from fiscal 2010, respectively.
In the diversified products segment, net sales totaled ¥500.5 billion, an increase of 1% from fiscal 2010. Operating
income was ¥5.8 billion, a decrease of 57% from fiscal 2010, due to decline of profit in domestic business.

(Note１) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.
(Note2) The Companies have two reportable segments: Tires and Diversified products, applied the “AccountingStandard for Disclosures about Segments of an Enterprise and Related information” (ASBJ Statement No. 17 ofMarch 27, 2009) and the “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information.” (ASBJ Guidance No. 20 of March 21, 2008)3

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

[Projections for fiscal 2012]
The Companies anticipate challenging conditions in fiscal 2012 due to concerns over sovereign fiscal
problems in Europe, decelerating growth in emerging countries, the continuing strength of the yen and the rising
prices of raw materials. In addition, the Group is expected to face changes in the domestic operating
environment following the Great East Japan Earthquake, as well as rapid changes in demand and competition
worldwide.
Amid such a challenging business environment, the Companies project the following results through theimplementation of Mid-Term Management Plan initiatves.
Fiscal 2012
projections

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,520.0

1,459.1

60.8

4

Operating income

118.0

93.6

24.3

26

Ordinary income

110.0

91.8

18.1

20

Net income

70.0

54.1

15.8

29

Net sales

3,240.0

3,024.3

215.6

7

Operating income

269.0

191.3

77.6

41

Ordinary income

250.0

179.3

70.6

39

Net income

168.0

102.9

65.0

63

Net salesFirst half

Fiscal 2011

Full-year

First half
Exchange
rate

Yen

Yen

yen/dollar

77

82

yen/euro

100

115

yen/dollar

77

80

(4)

yen/euro

100

111

(10)

(6)
－

(13)

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 Companies’ actual performance andresults to differ substantially from management’s projections and plans.

4

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(2) Analysis of Financial Position
1) Cash flow

Fiscal 2011

Fiscal 2010

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions

Net cash provided by operating activities

152.1

247.7

(95.5)Net cash used in investing activities(177.0)(170.5)(6.5)

Net cash used in financing activities(50.0)(82.5)

32.4

Effect of exchange rate changes
on cash and cash equivalents(13.0)(13.9)

0.9

Net increase (decrease)in cash and cash equivalents(88.0)(19.3)(68.7)At beginning of year

216.9

236.2

(19.3)At end of year

128.8

216.9

(88.0)Cash and cash
equivalents

The Companies’ cash and cash equivalents decreased ¥88.0 billion during 2011, to ¥128.8 billion, comparedwith a decrease of ¥19.3 billion during the prior year.
(Cash flow by operating activities)
Net cash provided by operating activities decreased ¥95.5 billion during 2011, compared with the prior year, to¥152.1 billion. The principal contributors in that cash provided included income before income taxes and minority
interests of ¥158.7 billion, compared with ¥141.6 billion during the prior year, depreciation and amortization of¥159.6 billion, compared with ¥170.6 billion during the prior year. These contributors offset an increase ininventories of ¥122.8 billion, compared with ¥32.6 billion in the prior year, income taxes paid of ¥31.5 billion,
compared with ¥22.4 billion in the prior year.
(Cash flow by investing activities)
Net cash used in investing activities increased ¥6.5 billion compared with the prior year, to ¥177.0 billion.
Expenditures included payments of ¥187.8 billion for purchase of tangible assets, compared with payments of¥177.9 billion during the prior year.
(Cash flow by financing activities)
Net cash used in financing activities increased ¥32.4 billion compared with the prior year, to ¥50.0 billion. The
principal contributors in that cash used included repayments of long-term borrowings of ¥166.0 billion, comparedwith ¥37.4 billion during the prior year, payments for redemption of bonds of ¥40.6 billion, compared with ¥74.6
billion during the prior year. These contributors offset a net increase in short-term borrowings of ¥63.4 billion,
compared with ¥21.0 billion in the prior year, proceeds from long-term borrowings of ¥77.2 billion, compared with
¥14.4 billion in the prior year.

5Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20112) Trends in cash flow indicators

Fiscal 2009

Fiscal 2010

Fiscal 2011

Ratio of total equity to total assets (%)

38.7

42.2

42.2

Total equity ratio on market value basis (%)

45.4

45.4

51.0

Interest-bearing debt / cash flow ratio(years)

2.3

2.7

4.0

Interest coverage ratio(times)

13.4

12.7

8.8

(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 2011 and 2012
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 and overseas.
For the fiscal 2011, the Company plans to pay a cash dividend of ¥22 per share, comprising a year-end cash
dividend of ¥12 per share and an interim cash dividend of ¥10 per share.
For the fiscal 2012, the Company plans to pay a cash dividend of ¥32 per share, comprising a year-end cash
dividend of ¥16 per share and an interim cash dividend of ¥16 per share.

6

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart

7

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

3. Management Policies(1) Basic Management Policies
The Bridgestone Group adheres to a corporate philosophy, which consist of the mission of “serving society withsuperior quality” and the foundation “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]” in order to fulfill this mission. Based on that corporate
philosophy, the Group will pursue the ultimate goal of the group management, which is “to become the status ofbeing the undisputed world No.1 tire and rubber company both in name and reality.” Further, as a responsible
global company, Bridgestone will respect the social culture and values of the various countries in which it
conducts business activities, comply with laws and statutory regulations, protect the global environment, andcontribute to society.
(2) Management Strategies and Tasks
Seeking “to become the undisputed world No.1 tire and rubber company both in name and reality” as theultimate goal of the group management, the Group will advance all business activities based on an awareness of
its corporate social responsibility. To that end, the Group has adopted a management stance with four components.
First, the Group will always bear in mind business basics and principles. Second, the Group will adhere to thephilosophy and spirit it has maintained since its establishment and uphold the “Bridgestone Way” corporate
philosophy that calls on the Group to realize the mission of “serving society with superior quality.” Third, the Groupwill solidify its business footing in Japan. Last, the Group will rigorously proceed with Group and global businessdevelopment on top of the strong foundation of its Japanese business.
Based on those four components of its management stance, the Group will develop businesses in accordancewith four fundamental management policies: 1. To always aim for “the higher level” and to be the best in the world
in all of our products and services; 2. To clarify the long-term strategy and to proceed with the integration andexpansion of business domains; 3. To aim for the real global corporation, adopting a strategic business unit (SBU)
organization; and 4. To aim for the optimum management of the entire Group, utilizing the Mid-Term Management
Plan.
The Companies face rapid, major structural changes that significantly affect earnings, including changes in thecomposition of demand, new competition, and fluctuations in currency exchange rates and the prices of raw
materials and materials. Against that backdrop, the Companies believe that it will be difficult to achieve sustained,
quality growth solely by pursing external growth in the scale of net sales and its overseas business. In addition to
the continuing extreme strength of the yen and the effects of the Great East Japan Earthquake on the domestic
economy in Japan, the global economy faces higher levels of instability and risk. Major concerns include therecovery of the U.S. economy, sovereign risk in Europe, and decelerating growth in emerging countries.
In the face of this growing instability and risk, the Companies sought to turn change into opportunity with theimplementation of the Lean & Strategic concept. On that basis, we rigorously streamlined our balance sheet.
To that end, the Companies will strive to make the most effective use of extensive vertical and horizontal
expansion in their operations. Vertically, the Companies’ operations extend throughout the supply chain, fromupstream, where raw materials are produced in-house, to downstream retail networks. Horizontally, the Companies
have developed operations globally, centered on the tire business.
Further, in our MTP 2011, which was announced in October 2011, we have formulated five items as initiatives for“competing on a different ground.”The first is expansion of strategic tire products and businesses. In passenger tires, including runflat tires, UHP
tires, and winter tires, we will incorporate the Group’s leading-edge technologies and take steps to aggressively
expand sales on a groupwide basis. In truck and bus tire segment, to meet the needs of customers and society forenvironment-responsive, cost optimization, and safe operation, we will implement global development of oursolutions business utilizing retread technologies, targeting especially strong growth in emerging markets. In large
and ultralarge off-the-road radial tires for construction and mining vehicles, the demand for mining resources
continues to be robust, and in response we will strengthen this area of our business in order to respond rapidly andwith flexibility to changes in the operating environment. Accordingly, in addition to the phase 3 expansion of theKitakyushu Plant, which was announced in 2010, we are building a new plant in North America, which will be thefirst such plant overseas.

8

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

The second initiative is reinforcing fundamental competencies, specifically by leveraging optimizing
specifications and reviewing expenses for processing while enhancing safety and quality in order to bolster overall
supply chain competitiveness. In optimizing specifications, the fundamental task is meeting the quality demandedby the market. On that basis, we will focus on technical development that also contributes to the environment, witha focus on achieving enhanced safety and reducing raw material consumption (half weight). We will strive tomaximize those effects through integrated activities that combine product development, production technologies,
and procurement/internal manufacturing. In reviewing expenses for processing while enhancing safety and quality,
we will develop high-productivity technologies while maximizing the use of existing production capacity. This willallow us to establish an organizational system that contributes to improved global profitability.
The third initiative is to make full use of vertical and horizontal expansion efficiencies. Through vertical expansion
in the upstream sectors of the supply chain, we will control tire quality and cost beginning at the raw material level.
In the downstream, we will expand the network of retail outlets to provide customers with optimal products andservices on a timely basis. In addition, we will advance initiatives that fully leverage our ability to rapidly respond tomarket needs. Regading in-house production of raw materials, we will further advance the positioning of existing
strategic raw material supply bases. As a result, we will enhance these bases into profit centers that contribute toimproved financial results for the Companies. Moreover, through “horizontal expansion,” we will evaluate the rolesof industrially developed countries and emerging countries in sales and production, and invest management
resources to maximize their contribution to the Companies as a whole.
The fourth initiative is planning based on the principles of selection and concentration in diversified products
business, or non-tire operations. We will work to bolster global development in chemical and industrial products
operations, and we will take steps to expand profits, centered on construction materials and hose/belt operations
and so on. Moreover, we will invest management resources for eco-friendly products and the development of new
business models.
The fifth initiative is to enhance environmental activities and eco-friendly products and businesses, we refined
the global Environmental Mission Statement in May 2011. This step was taken in order to clarify the long-term
direction of the Companies’ environmental activities. The refined mission statement will help to raise theenvironmental awareness by the Companies’ employees and bolster initiatives targeting the realization of a society
based on “ecological conservation,” “resource conservation” and “reducing CO2 emissions.” Specifically, we havealready established numerical objectives, such as targets for CO2 emission reductions, with consideration for suchfactors as the social and operating environments. By incorporating these into plans for individual eco-friendly
products and operations, we have a framework for the achievement of these goals.
These five items comprise our initiatives for “competing on a different ground.” They were formulated inaccordance with our four fundamental management policies. The Group believes that in order to realize a basic
system for implementing those strategies and measures, it must optimize organizational systems on a Group andglobal basis and undertake a mid-term management plan that is consistent for the Group as a whole. Therefore,
the Group will continue to strengthen those aspects of its operations.
As an organizational systems initiative, the Group will gain an accurate understanding of market and customer
needs in regions worldwide. Based on that understanding, the Group will evolve and further increase theeffectiveness of the SBU system, which was introduced to reflect such needs optimally and rapidly on a Group andglobal basis. Further, in order to prevail and survive amid tough business conditions, it is critical for the Group to
exploit its wide-ranging and diverse management resources to the utmost and in accordance with consistenttargets and plans. To realize those objectives, the Group will revise the mid-term management plan on an annual
rolling basis, extending it by one year at a time. Those revisions will enable the Group to respond accurately andrapidly to dramatically fluctuating business conditions as it seeks to maintain earnings levels. In other words, theGroup will move forward vigorously to build a corporate organization that steadily increases profitability.
In addition, the Group will step up efforts to build systems that will enable the realization of its responsibilities as
a company toward all of its stakeholders. The Group will conduct regular yearly reviews of its policy for thedevelopment of internal control systems that ensure appropriate operations. Moreover, the Group will undertake
reviews of that policy as needed and steadily develop systems in accordance with the policy. For corporate
governance systems, the Group will take further steps to ensure that the Company’s decision making consistently
follows fair and transparent rules. Centering on the Integrated CSR Enhancement Committee, the Group’s
corporate social responsibility activities will establish systems and heighten the effectiveness of activities in allareas, including rigorous risk management for environmental protection, product safety, compliance and disaster9

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

prevention and safety initiatives; internal control improvement; employee education; and corporate citizenshipactivities.
Since May 2007, the U.S. Department of Justice, the European Commission, the Fair Trade Commission ofJapan, and other authorities have investigated the Company and certain of its subsidiaries in connection withalleged international cartel activities regarding the sale of marine hoses. During the course of investigations,the Company uncovered the fact that there have been incidents of improper monetary payments to foreign
agents, a part of which may have been provided to foreign governmental officials and other possible forms ofimproper payments in connection with the sale of marine hoses and other industrial products. The Company
has reported the findings of its internal inquiries to the Japanese Public Prosecutors Office and the U.S.
Department of Justice.
With respect to the marine hose cartel, the Company received orders from the Fair Trade Commission ofJapan in February 2008 which directed the Company to cease and desist from violating the Antimonopoly Act
and to pay surcharges for violating the Act. The Company has responded to the order accordingly. Moreover,in January 2009, the Companies were notified by the European Commission of its decision to impose a fine for
involvement in an international cartel related to the sale of marine hoses, and have paid the imposed fine.
In September 2011, the Company entered into a plea agreement with the U.S. Department of Justice.
Under the plea agreement, the Company agreed to plead guilty to an antitrust conspiracy and a conspiracy toviolate the Foreign Corrupt Practices Act, and to pay a fine. The plea agreement was approved by the U.S.
District Court in October 2011, finalizing the penalty against the Company, and the Company has paid the fineaccordingly.
Proceedings initiated in other countries with respect to the marine hose cartel have already been finalized.
In regard to the class action lawsuit brought in the United States in connection with the marine hose cartel, afinal approval of proposed settlements was granted by the Court. Further, the Company has handled otherindividual civil claims in an appropriate manner.
We are committed to the efforts to further enhance and expand our remediation measures, and to conductbusiness in compliance with the competition and anticorruption laws around the world.

10

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
Previous Year(As of December 31, 2010)

Current Year(As of December 31, 2011)

AssetsCurrent Assets
Cash and deposits

185,334

130,343

Notes and accounts receivable

426,935

438,764

Short-term investments

113,228

90,133Merchandise and finished products

253,908

314,454Work in process

31,362

34,614

Raw materials and supplies

142,314

171,411

Deferred tax assets

61,48775,157

Other

72,281

76,945

Allowance for doubtful accounts(9,884)(8,109)Total Current Assets(Note2)

1,276,968(Note2)

1,323,716

Fixed Assets
Tangible assets
Buildings and structures, net

341,190322,704

Machinery, equipment and vehicles, net

378,430

347,195

Land

147,094

140,167

Construction in progress

89,555120,506

Other, net

50,35350,757

Total tangible assets(Note1)Intangible assets

1,006,624(Note1)

31,061

981,331
27,943

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

217,340(Note3)

182,536

6,753

6,402

Deferred tax assets

103,201

94,640Other66,27764,073

Allowance for doubtful accounts(1,588)(3,299)Total investments and other assets

391,984

344,353

Total Fixed Assets(Note2)

Total

1,429,671
2,706,639

11(Note2)

1,353,628
2,677,344

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(Yen in millions)
Previous Year(As of December 31, 2010)

Current Year(As of December 31, 2011)

Liabilities
Current Liabilities
Notes and accounts payable

188,150

196,742

Short-term borrowings

297,176

198,115

Commercial paper

20,60818,933Current portion of bonds

21,10813,174

Lease obligations

1,035

754

Income taxes payable

15,11322,854

Deferred tax liabilities

902

1,612

3,693

3,740

-

378

Accounts payable-other139,333

148,756

Accrued expenses

150,372

152,088

Other

39,55840,579Total Current Liabilities

877,052

797,730

Bonds

125,975

123,079

Long-term borrowings

191,373

238,474

Lease obligations

5,888

10,061

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

38,99923,882

237,194

257,630

17,03916,985

Provision for environmental remediation

4,780

4,516

Provision for recall of merchandise

1,367

-

Other

30,82339,310Total Long-term Liabilities

653,440

713,940

1,530,492

1,511,671

Common stock

126,354

126,354

Capital surplus

122,629

122,629

1,111,588

1,279,978(57,245)(57,248)

1,303,326

1,471,713

Accumulated other comprehensive income
Net unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative instruments

112,064

97,750

(235)

(890)

Foreign currency translation adjustments(274,026)(331,784)-(106,211)(162,197)(341,135)

514

770

Minority Interests

34,50334,324

Total Net Assets

1,176,147

1,165,673

Total

2,706,639

2,677,344

Provision for sales returns
Provision for recall of merchandiseLong-term Liabilities

Total Liabilities
Net Assets
Shareholders' equity

Retained earnings
Treasury stock-at cost
Total Shareholders’ equity

Post retirement liability adjustments for foreigncompanies
Total accumulated other comprehensive
incomeStock acquisition rights

12

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Yen in millions)
Previous Year
(Year ended December 31, 2010)

Current Year
(Year ended December 31, 2011)

Net Sales

2,861,615

3,024,355

Cost of Sales

1,936,309

2,091,718

Gross profit

925,306

932,637

Goods freightage expenses

128,331

132,840

Advertising and promotion expenses

96,886

90,833

Salaries, allowances and bonuses

190,031

186,142Retirement benefit expenses

18,391

14,476

Depreciation

23,85022,847

Selling, General and Administrative Expenses

Research and development expenses(Note1)

85,153(Note1)

83,981

Other

216,210210,194

Total selling, general and administrative expenses

758,856

741,315

Operating income

166,450

191,321

Interest income

3,504

4,125

Dividend income

3,417

4,299

Gain on sales of tangible assets

2,954

－

Other

11,717

14,909Total non-operating income

21,59423,334

Interest expense

18,764

16,710Foreign currency exchange loss

4,595

2,145

Other

16,77816,483

Total non-operating expenses

40,13835,338

Ordinary income

147,905

179,317

Non-operating Income

Non-operating Expenses

Extraordinary Income
Gain on sales of tangible assets－

Total extraordinary income－(Note2)

7,295
7,295

Extraordinary Loss－

Impairment loss
Loss on disposals of tangible assets(Note3)

4,011

13,086
4,212

Loss on disaster－

Loss on valuation of investments in securities

－

3,486

Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss related to US antitrust law and US Foreign
Corrupt Practices Act
Loss on recall of merchandise

－

2,471

－

(Note4)(Note5)

2,426

2,149

2,217

－

6,228

27,833

Income before income taxes and minority interests

141,677

158,779

Income taxes - current

32,63345,937

Income taxes - deferred

3,920

5,125

Total income taxes

36,55451,063－

107,716

Minority Interests

6,209

4,746

Net Income

98,913102,970(Note6)

Total extraordinary loss

Income before minority interests

13

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

Consolidated Statements of Comprehensive Income(Yen in millions)
Previous Year
(Year ended December 31, 2010)

Current Year
(Year ended December 31, 2011)－

107,716－(14,318)

－

(695)

－

(57,780)

Post retirement liability adjustment forforeign companies
Share of other comprehensive income inaffiliates－(25,138)－(2,387)

Total other comprehensive income－(Note2)(100,320)－(Note1)

7,395

Income before minority interests
Other comprehensive income
Unrealized gain (loss) on availavle-for-salesecurities
Deffered gain (loss) on derivative
instruments
Foreign currency translation adjustments

Comprehensive income
Comprehensive income attribute to:Shareholders of Bridgestone Coporation

－

5,099

Minority Interests

－

2,296

14

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(3) Consolidated Statements of Changes in Net Assets(Yen in millions)
Previous Year
(Year ended December 31, 2010)

Current Year
(Year ended December 31, 2011)

Shareholders’ equity
Common stock
Ending Balance of the previous year

126,354

126,354－－

126,354

126,354

122,647

122,629

Disposition of treasury stock

(17)

0

Total changes in the year

(17)

0

122,629

122,629

1,006,859

1,111,588－

81,073

Cash dividends(14,117)(15,653)

Net income

98,913102,970

Decreased by retirement benefit obligations

19,933－

Total changes in the year

104,728

87,316

1,111,588

1,279,978(54,847)(57,245)

Purchase of treasury stock(2,475)(3)

Disposition of treasury stock77

0(2,398)(3)(57,245)(57,248)

1,201,013

1,303,326－

81,073

Cash dividends(14,117)(15,653)

Net income

98,913102,970

Decreased by retirement benefits obligations

19,933－Purchase of treasury stock(2,475)(3)

Disposition of treasury stock60

0102,31387,313

1,303,326

1,471,713

Changes in the year
Total changes in the year
Ending Balance
Capital surplus
Ending Balance of the previous year
Changes in the year

Ending Balance
Retained earnings
Ending Balance of the previous year
Reclassification of post retirement liability
adjustments for foreign companies
Changes in the year

Ending Balance
Treasury stock-at costEnding Balance of the previous year
Changes in the year

Total changes in the year
Ending Balance
Total shareholders’ equity
Ending Balance of the previous year
Reclassification of post retirement liability
adjustments for foreign companies
Changes in the year

Total changes in the year
Ending Balance

15

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(Yen in millions)
Previous Year
(Year ended December 31, 2010)

Current Year
(Year ended December 31, 2011)

Accumulated other comprehensive income
Net unrealized gain(loss) on available- for-salesecurities
Ending Balance of the previous year

100,696

112,064

Net Change in the year

11,367(14,313)

Total changes in the year

11,367(14,313)112,064

97,750

(844)

(235)

Net Change in the year

608

(654)

Total changes in the year

608

(654)

(235)

(890)

(214,263)(274,026)

Net Change in the year

(59,762)(57,758)

Total changes in the year

(59,762)(57,758)(274,026)(331,784)

Ending Balance of the previous year－－

Reclassification of post retirement liability
for foreign companies－(81,073)

Net Change in the year－

(25,138)

Total changes in the year－

(25,138)－(106,211)

336

514

Net Change in the year

178

255

Total changes in the year

178

255

514

770

33,85934,503

Net Change in the year

644

(178)

Total changes in the year

644

(178)

34,50334,324

Changes in the year

Ending Balance
Deferred gain(loss) on derivative
instruments
Ending Balance of the previous year
Changes in the year

Ending Balance
Foreign currency translation adjustments
Ending Balance of the previous year
Changes in the year

Ending Balance
Post retirement liability adjustments forforeign companies

Changes in the year

Ending Balance
Stock acquisition rights
Ending Balance of the previous year
Changes in the year

Ending Balance
Minority Interests
Ending Balance of the previous year
Changes in the year

Ending Balance

16

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(4) Consolidated Statements of Cash Flows(Yen in millions)
Previous Year
(Year ended December 31, 2010)

Current Year
(Year ended December 31, 2011)

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

141,677

158,779

Depreciation and amortization

170,662

159,666(4,951)－(3,291)(17,949)

Increase(decrease) in provision for sales returns

3,693

－

Interest and dividend income(6,921)(8,424)

Interest expense

18,764

16,710Foreign exchange losses (gains)

－

4,818

Gain on sales of tangible assets－(7,295)

Impairment loss－

13,086

4,011

4,212

Loss on disaster

－

2,426

Loss(gain) on valuation of investments insecurities
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss related to US antitrust law and US Foreign
Corrupt Practices Act

－

3,486

－

2,471

－

2,149

2,217

－

Decrease(increase) in notes and accounts
receivable(62,457)(35,281)

Decrease(increase) in inventories(32,664)(122,890)

Increase(decrease) in notes and accounts payable

42,561

20,912

Other

9,462

(2,179)Subtotal

282,763

194,698

6,844

8,540

(19,461)(17,358)－(2,149)

Income taxes paid

(22,410)(31,573)

Net Cash Provided by Operating Activities

247,736

152,157(177,971)(187,853)

Proceeds from sales of tangible assets

4,491

12,239Payments for investments in securities(2,002)－

Proceeds from investments in securities

5,921

3,023

Proceeds from collection of loans
receivable

2,386

1,514

Other

(3,382)(6,002)(170,556)(177,079)

Increase(decrease) in allowance for
doubtful accounts
Increase(decrease) in accrued pension andliability for retirement benefits

Loss on disposals of tangible assets

Loss on recall of merchandiseInterest and dividends received
Interest paid
Payment related to US antitrust law and US
Foreign Corrupt Practices Act

Cash Flows from Investing Activities
Payments for purchase of tangible assets

Net Cash Used in Investing Activities

17

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(Yen in millions)
Previous Year
(Year ended December 31, 2010)

Current Year
(Year ended December 31, 2011)

Cash Flows from Financing Activities
Net increase(decrease) in short-term borrowings

21,05963,400

Proceeds from long-term borrowings

14,47077,265

Repayments of long-term borrowings(37,432)(166,003)

Proceeds from issuance of bonds

13,82735,463

Payments for redemption of bonds(74,615)(40,618)

Payments for purchase of treasury stock(2,475)－

Repayments of obligations under financeleases－(1,540)Cash dividends paid

(14,119)(15,656)

Cash dividends paid to minority(2,317)(2,382)

(925)

(3)

(82,528)(50,074)(13,996)(13,086)(19,345)(88,084)

236,270

216,924

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)

18

216,924(Note1)

128,840

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011(5) Notes regarding going concern assumption
Not applicable(6) Basic important matters for preparation of consolidated financial statements
1. Scope of consolidation
1) Number of consolidated subsidiaries: 332 companies
Names of principal companies:
Refer to “2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart”
Changes in scope of consolidation:
Additions: 6 companies (Mainly, Increased by establishment)
Deletions: 14 companies (Mainly, decreased by liquidation)2) There are no non-consolidated subsidiaries
2. Scope of application of equity-method accounting
1) Number of equity-method affiliates: 152 companies
Main equity-method affiliate
BRISA BRIDGESTONE SABANCI LASTIK SANAYI VE TICARET A.S.
Changes in the scope of equity-method accounting
Deletions: 5 companies (Mainly, decreased by liquidation)2) There are no non-consolidated subsidiaries or affiliates to which equity-method accounting is not applied.
3. Fiscal year of consolidated subsidiaries
Consolidated subsidiary BRIDGESTONE RIHGA,LTD. ends its fiscal year on October 31. Further,
BRIDGESTONE TVS INDIA PRIVATE LTD. ends its fiscal year on March 31. Consolidated results areadjusted as necessary to reflect important transactions taking place between the respective fiscal year-ends ofsubsidiaries and the fiscal year-end of the Bridgestone Group.
4. Accounting standards
1) Valuation standards 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 standards and methods for derivatives
In principle, fair value.
3) Valuation standards and methods for inventories
Inventories are substantially stated at cost basis determined by the moving-average method andadjustment method of the cost basis to net recoverable value is applied, if lower, while inventories held bysubsidiaries in the Americas are substantially stated at the lower of cost, which is determined principallyby the last-in, first-out method.
4) Depreciation method for fixed assets
For tangible assets, the declining-balance method is used at domestic subsidiaries, and thestraight-line method is used at overseas subsidiaries.
For intangible assets, the straight-line method is used.
5) Accounting standards 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.

19

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011b) Provision for sales returns
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 recall of merchandise
In order to reserve for outlays for recall of merchandise, an estimated amount is recorded in thebicycle business.
d) 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 in the year in which they occur (10 years fordomestic companies, 3 to 12 years for overseas companies).
Actuarial gain/loss at domestic companies is treated as an expense using the straight-line method
over a fixed number of years (10 years) based on the average remaining years of service in the year inwhich they occur, recorded from the following year. For certain overseas companies, unrecognizedactuarial 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.
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 employee.
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” included inaccumulated other comprehensive income on the balance sheet.
e) 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.
f) Provision for environmental remediation
In order to reserve for outlays for legally required removal and disposal of asbestos, etc., an
estimated amount of future obligations is recorded.

6) Standards 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.

20

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

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 methods and items covered
MethodForward 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 Statements 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, etc.
Consumption tax and local consumption taxes are excluded.

21

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(7) Changes in accounting principles
1. Adoption of the “Accounting Standard for Asset Retirement Obligations”
Starting from the current fiscal year, the Companies have adopted the “Accounting Standard for Asset
Retirement Obligations” (ASBJ Statement No. 18 of March 31, 2008) and the “Guidance on AccountingStandard for Asset Retirement Obligations” (ASBJ Guidance No.21 of March 31, 2008). Although the impact of
this adoption on operating income and ordinary income is not material, ¥2,471 million of loss on adjustment forchanges of accounting standard for asset retirement obligations is recorded to extraordinary loss.
2. Adoption of the “Accounting Standard for Equity Method of Accounting for Investments”
Starting from the current fiscal year, the Companies have adopted the “Accounting Standard for Equity
Method of Accounting for Investments” (ASBJ Statement No.16 of March 10, 2008), and the “Practical Solution
on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method” (ASBJ
Practical Issues Task Force No.24, March 10, 2008). There is no impact on gain or loss during the period as aresult of this adoption.

(8) Changes in presentation(Consolidated Balance Sheet)
Starting from the current fiscal year, the Companies have adopted the “Accounting Standard for Presentationof Comprehensive Income” (ASBJ Statement. No. 25 of June 30, 2010). “Post retirement liability adjustments forforeign companies” included in Net Assets of “Retained earnings” for the previous fiscal year is presented as“Post retirement liability adjustments for foreign companies” included in accumulated other comprehensive
income.
The Company recorded minus ¥81,073 million as “Post retirement liability adjustments for foreign companies”
included in Net Assets of “Retained earnings” for the previous fiscal year.
(Consolidated Statements of Income)Starting from the current fiscal year, the Companies have adopted the “Cabinet Office Ordinance Partially
Revising Regulation on Terminology, Forms and Preparation of Financial Statements” (Cabinet Office Ordinance
No. 5 of March 24, 2009), based on the “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22 of December 26, 2008), and the account item “Income before minority
interests” is presented as a result.

22

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011(9) Additional Information
1) Information about Bridgestone Corporation and certain of its subsidiaries’ cartel activities regarding the sale ofmarine hoses and improper monetary payments.
In May 2007, the U.S. Department of Justice, the European Commission, the Fair Trade Commission ofJapan, and other authorities initiated investigations against the Company and certain of its subsidiaries inconnection with international cartel activities regarding the sale of marine hoses. During the course ofinvestigations, the Company uncovered the fact that there have been incidents of improper monetary
payments to foreign agents, a part of which may have been provided to foreign governmental officials andother possible forms of improper payments in connection with the sale of marine hoses and other industrial
products. The Company has reported the findings of its internal inquiries to the Japanese Public Prosecutors
Office and the U.S. Department of Justice.
With respect to the marine hose cartel, the Company received orders from the Fair Trade Commission ofJapan in February 2008 which directed the Company to cease and desist from violating the Antimonopoly Act
and to pay surcharges for violating the Act. The Company has responded to the order accordingly.
Moreover, in January 2009, the Companies were notified by the European Commission of its decision to
impose a fine of €58.5 million for involvement in an international cartel related to the sale of marine hoses, andhave paid the imposed fine.
In September 2011, the Company entered into a plea agreement with the U.S. Department of Justice.
Under the plea agreement, the Company agreed to plead guilty to an antitrust conspiracy and a conspiracy toviolate the Foreign Corrupt Practices Act, and to pay a fine of $28 million. The plea agreement was approvedby the U.S. District Court in October 2011, finalizing the penalty against the Company, and the Company has
paid the fine accordingly. The Company has recorded ¥2,149 million as an expense in connection with thisfine in the fiscal year 2011.
Proceedings initiated in other countries with respect to the marine hose cartel have already been finalized.
In regard to the class action lawsuit brought in the United States in connection with the marine hose cartel, afinal approval of proposed settlements was granted by the Court. Further, the Company has handled otherindividual civil claims in an appropriate manner.
2) Accounting standard for presentation of comprehensive income
Starting from the current fiscal year, the Companies have adopted the “Accounting Standard for Presentationof Comprehensive Income” (ASBJ Statement. No. 25 of June 30, 2010). However, the amounts of“Accumulated other comprehensive income” for the previous fiscal year are presented as the amounts for“Valuation and translation adjustments and others”.

23Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011(10) Notes to the consolidated financial statements(Consolidated Balance Sheet)Previous Year(As of December 31, 2010)
Note 1

Current Year(As of December 31, 2011)

Accumulated depreciation of tangible assets

Note 1

Accumulated depreciation of tangible assets¥1,855,649 million

Note 2

Assets pledged as collateral¥8,871 million(Obligations corresponding to the preceding¥1,867,601 million

Note 2

Assets pledged as collateral¥9,086 million(Obligations corresponding to the preceding

Short-term bank borrowings¥1,654 million

Short-term bank borrowings¥1,306 million

Long-term bank borrowings¥295 million)

Long-term bank borrowings¥189 million)

Note 3

Assets or liabilities related to non-consolidated
subsidiaries and affiliates
Investments in securities¥14,362 million

Note 3

Assets or liabilities related to non-consolidated
subsidiaries and affiliates
Investments in securities¥12,284 million

4

Guarantees
Guarantees on employees' bank borrowings, etc.
¥196 million
Balance of trade notes discounted¥1,387 million

4

Guarantees
Guarantees on employees' bank borrowings, etc.
¥147 million
Balance of trade notes discounted¥1,859 million

5

5

24

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(Consolidated Statements of Income)Previous Year
(Year ended December 31, 2010)
Note 1

Current Year
(Year ended December 31, 2011)
Note 1

Research and development expenses
General and administrative expenses¥85,153 million

General and administrative expenses¥83,981 million
Note 2－

Research and development expenses

Gain on sales of tangible assets
Gain on sales of tangible assets mainly consists ofgain on sales of land.

－

Note 3

Impairment loss
The Companies group their operating assets inaccordance with the classifications used for internalmanagement. Disposal assets (assets that theCompanies plan to dispose of through scrapping orsale) and idle assets are grouped on an individual
basis.
In the period under review, for operating assets forwhich profitability has declined, disposal assets
through planned scrapping or sale, and idle assetsthat are not expected to be used in the future, thecarrying amounts were reduced to the recoverable
amounts, and the amounts of these reductions wererecorded under extraordinary loss as impairment
loss of ¥13,086 million. That total included ¥5,618
million for buildings and structures, ¥3,056 million
for machinery, equipment, and vehicles, ¥2,669
million for land, and ¥1,741million for others.

.

USE

Classification

Location

Amount(Yen inmillions)

Operatingbuildings andassetsstructures

Japan

1,381

10,979machinery,equipment,etc
Disposalbuildings andJapanassetsstructures

Northland etc

Americaetc

Idle

buildings andassetsstructuresmachinery,equipment,
etc

25

Japan

725

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

The recoverable amount of operating assets ismeasured by value in use, which is calculated bydiscounting future cash flows at a discount rate of
7.5%. The recoverable amounts of disposal assets
and idle assets are measured at the net selling
price. Assets to be scrapped are evaluated atmemorandum value, and assets to be sold and idle
assets are evaluated at the estimated selling price.

Note 4－

Loss on disaster
Loss on disaster consists of restoration expenses
for tangible assets, and scrapping expenses forinventories as a result of the Great East Japan
Earthquake, which occurred on March 11, 2011.

Note 5－Note 6

Loss related to US antitrust law and US Foreign
Corrupt Practices Act
The Company has recorded the expense inconnection with guilty to an antitrust conspiracy anda conspiracy to violate the Foreign Corrupt
Practices Act regarding the sale of marine hoses,
as a result of the finalized penalty by the U.S.
Department of Justice.

Loss on recall of merchandise
In the bicycle business, an estimated amountof outlays for recall of merchandise is recorded.

(Consolidated Statement of Comprehensive Income)Consolidated Results for Fiscal 2011(January 1, 2011 - December 31, 2011)
Note 1 Comprehensive income in Consolidated Results for Fiscal 2011
(Yen in millions)Shareholders of Bridgestone Coporation
Minority Interests

71,224
4,869
Total 76,093

Note 2 Other comprehensive income in Consolidated Results for Fiscal 2011
(Yen in millions)

Unrealized gain (loss) on availavle-for-sale securities
Deffered gain (loss) on derivative instruments
Foreign currency translation adjustment
Post retirement liability adjustments for foreign companies
Share of other comprehensive income in affiliates

26

11,367606(59,176)
19,933(1,759)Total (29,028)

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(Consolidated Statements of Changes in Net Assets)
Previous Year（Year ended 31 December 2010)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2009
Number of shares issued
Common stock(Thousands of shares)

As of
December 31,
2010

813,102－－

813,102

28,7971,682

40

30,439Treasury stock
Common stock(Thousands of shares)(see notes 1 & 2)

Notes 1: The increase of treasury stock consists of the purchase of 1,674 thousand shares according to the requests
from the shareholders due to the Company’s merger with its subsidiary and the purchase of 7 thousand
shares according to the requests from the shareholders who have odd-lot shares.
2: The decrease of treasury stock consists of 40 thousand shares used for the exercise of stock options.

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, 2009

Increase

As ofDecember31, 2010

Decrease

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

－

－

－

－

－

514

－

－

－

－

－

514

Resolution

Type

Total dividends(yen in millions)

Annual Shareholders’Meeting, March 30,
2010

Common StockBoard of Directors,
August 6, 2010

Common Stock

Total

3. Dividends(1) Dividend payments
Dividend per
share

Record date

Effective date

6,274

¥8

December 31,
2009

March 31,
2010

7,843

¥10

June 30,2010

September 1,
2010(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 29,
2011

CommonStockRetainedearnings

7,826

27

¥10

December 31,
2010

March 30,2011

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

Current Year（Year ended 31 December 2011)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2010
Number of shares issued
Common stock(Thousands of shares)

As of
December 31,
2011

813,102－－

813,10230,4392

030,441

Treasury stock
Common stock(Thousands of shares)(see notes 1 )Notes 1: The increase of treasury stock consists of the purchase of 2 thousand shares according to the requests fromthe shareholders who have odd-lot shares.

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, 2010

Increase

As ofDecember31, 2011

Decrease

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

－

－

－

－

－

770

－

－

－

－

－

770

Resolution

Type

Total dividends(yen in millions)

Annual Shareholders’Meeting, March 29,
2011

Common StockBoard of Directors,
August 8, 2011

Common Stock

Total

3. Dividends(3) Dividend payments
Dividend per
share

Record date

Effective date

7,826

¥10

December 31,
2010

March 30,
2011

7,826

¥10

June 30,2011

September 1,
2011(4) 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 27,
2012

CommonStockRetainedearnings

9,391

28

¥12

December 31,
2011

March 28,2012

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(Consolidated Statements of Cash Flows)
Previous Year
(Year ended December 31, 2010)
Note 1

Current Year
(Year ended December 31, 2011)

Relationship between cash and cash
equivalents at fiscal year end and amountshown in Consolidated Balance Sheet

Note 1

Relationship between cash and cash
equivalents at fiscal year end and amountshown in Consolidated Balance Sheet(As of December 31, 2010)(As of December 31, 2011)

Yen in millions

Yen in millions

Cash and deposits

185,334

Cash and deposits

130,343

Short-term investments

113,228

Short-term investments

90,133Current Assets – other (money
held in trust)

Total
5,500

220,476

Total

304,062

Time deposits, bonds, etc. withterms of more than three months(87,138)

Time deposits, bonds, etc. withterms of more than three months(91,636)

Cash and cash equivalents

216,924

Cash and cash equivalents

128,84029

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(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 in order todecide 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 andtubes, 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 and Diversified 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 2010(January 1, 2010 - December 31, 2010)
Diversified
Products

Tires(Yen in millions)

Adjustments(note)

Total

Consolidated

Net sales:
External customers－

2,377,305

484,310

2,861,615

Inter-segment

2,267

10,376

12,644(12,644)－

Total

2,379,572

494,6872,874,259(12,644)2,861,615

153,129

13,364

166,494(44)

166,450

2,321,573

388,061

2,709,634(2,994)

2,706,639

145,692

21,968167,660－

167,660

Amortization of goodwill

3,001

－

3,001

－

3,001

Investment for
equity-method affiliates

13,946418

14,365(2)

14,362

Increase in tangible andintangible fixed assets

159,972

22,860182,833－

182,833

Segment income(Operating income)Segment assets

2,861,615

Other
Depreciation andamortization

Note: 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 2011

Consolidated Results for Fiscal 2011(January 1, 2011 - December 31, 2011)
Diversified
Products

Tires(Yen in millions)
Adjustments(note)

Total

Consolidated

Net sales:
External customers－

2,536,730

487,625

3,024,355

Inter-segment

3,054

12,945

15,999(15,999)－

Total

2,539,785

500,5703,040,355(15,999)

3,024,355

185,475

5,812

191,28733

191,3212,295,946

384,216

2,680,163(2,819)2,677,344

136,336

21,708158,044－

158,044

Amortization of goodwill

1,501

120

1,621

－

1,621

Investment for
equity-method affiliates

11,988299

12,287(2)

12,284

Increase in tangible andintangible fixed assets

174,778

26,789201,568－

201,568

Segment income(Operating income)Segment assets

3,024,355

Other
Depreciation andamortization

Note: 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.
Additional Information

Starting from the current fiscal year, the Companies have adopted the “Accounting Standard for Disclosures about
Segments of an Enterprise and Related information” (ASBJ Statement No. 17 of March 27, 2009) and the “Guidance on
Accounting Standard for Disclosures about Segments of an Enterprise and Related Information.” (ASBJ Guidance
No.20 of March 21, 2008)31

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(Per share information)(Yen)
Previous Year
(Year ended December 31, 2010)

Current Year
(Year ended December 31, 2011)

Total equity per share

1,458.01

1,444.53

Net income per share

126.19131.56

Diluted net income per share

126.16131.50Items

Notes:

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

Previous Year
(Year ended December 31, 2010)
Net income per share

Current Year
(Year ended December 31, 2011)(Yen in millions)(Yen in millions)

98,913102,970－－

98,913102,970

Average number of shares heldby common shareholders
during term
Diluted net income per share(Thousands of shares)
783,818(Thousands of shares)
782,662(Thousands of shares)(Thousands of shares)

Net income adjustments
Increase of common stock(stock option portion include in
the above)

－
228
(228)

－
382
(382)

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2004
Common Stock225

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2004
Common Stock225

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2005
Common Stock
252

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2005
Common Stock
252

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 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 29, 2007
Common Stock260

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting and the board of
directors, March 27, 2008
Common Stock234

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting and the board of
directors, March 27, 2008
Common Stock234

Net Income
Amount not belonging tocommon shareholders
Net income corresponding tocommon shareholders

Summary of residual shares withno dilution effect and therefore
not included in calculation ofdiluted net income per share32

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

(Significant subsequent events)
Transactions under common control
On January 1, 2012, a merger was implemented among 5 broad area sales companies that wereconsolidated subsidiaries of the Company. On the same date, another merger was implemented among
Bridgestone FVS Co., Ltd., and 5 retail companies. The details are as follows:(1) Outline of the transactions
1. Merger of 5 broad area sales companies
a. Name and business activities of combined entity
Name: BRIDGESTONE TIRE SALES KANTO CO., LTD.
Business activities: Sales of automobile tires
Companies that were merged: BRIDGESTONE TIRE SALES KITANIHON CO., LTD.
BRIDGESTONE TIRE SALES CHUBU CO., LTD.
BRIDGESTONE TIRE SALES KINKISHIKOKU CO., LTD.
BRIDGESTONE TIRE SALES NISHINIHON CO., LTD.
Business activities: Sales of automobile tires
b. Date of combination: January 1, 2012
c. Form of business combination:
Absorption-type merger with Bridgestone Tire Sales Kanto Co., Ltd., as the surviving company
d. Name of the entity after the combination: BRIDGESTONE TIRE JAPAN CO., LTD.
2. Merger of Bridgestone FVS Co., Ltd., and 5 retail companies in which equity was owned by 5 broad area
sales companies.
a. Name and business activities of combined entity
Name: Bridgestone FVS CO., LTD.
Business activities: Sales of automobile parts components
Companies that were merged:

BRIDGESTONE RETAIL KITANIHON CO., LTD.
BRIDGESTONE RETAIL KANTO CO., LTD.
BRIDGESTONE RETAIL CHUBU CO., LTD.
BRIDGESTONE RETAIL KINKISHIKOKU CO., LTD.
BRIDGESTONE RETAIL NISHINIHON CO., LTD.
Business activities: Sales of automobile tires
b. Date of combination: January 1, 2012
c. Form of business combination:
Absorption-type merger with Bridgestone FVS CO., LTD., as the surviving company
d. Name of the entity after the combination: BRIDGESTONE RETAIL JAPAN CO., LTD.

(2) Other items related to the outline of the transactions
The Companies are aiming to establish a true “vertically integrated sales business model” through thetransfer to two companies of the majority of the functions of domestic replacement tire sales divisions and theintegration of the domestic replacement tire sales divisions, wholly owned sales companies, and directly
operated stores.
(3) Outline of accounting treatment implemented
The combination was implemented as a business combination under common control, based on the“Accounting Standard for Business Combinations” (ASBJ Statement No.21, December 26, 2008) and“Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ
Guidance No. 10, December 26, 2008).

33

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

5. Other(1) Senior Management Changes

Tokyo (February 16, 2012) - Bridgestone Corporation announced that its board of directors has approved thefollowing proposals of the changes in members of the board of directors and corporate officers today.
1. New Members of the Board of Directors

Occupation in parentheses(Subject to approval at the Company’s annual Shareholders' Meeting on March 27, 2012)
Vice President and Senior Officer

Yoshiyuki Morimoto〔Vice President and Senior Officer

Member of the Board

Responsible for Products Development;

Responsible for Products Development;

Concurrently responsible for

Concurrently responsible for

Research and Development〕

Production Technology
Vice President and Senior Officer

Narumi Zaitsu

Member of the Board〔Vice President and Senior Officer
Responsible for Global Logistics Center〕

Responsible for Quality Management;
Concurrently responsible for
Global Logistics Center

2. New Members of Corporate Auditors

Occupation in parentheses(Subject to approval at the Company’s annual Shareholders' Meeting on March 27, 2012)
Corporate Auditor

Mikio Masunaga〔Vice President and Senior Officer
Member of the Board
Responsible for Quality Management〕

Corporate Auditor

Tomoko Watanabe〔Patent attorney
Representative, WATANABE TOMOKOINTERNATIONAL PATENT OFFICE〕* Ms. Tomoko Watanabe is a candidate for outside corporate auditor as set forth in Article 2-16 of the Corporate Law
of Japan.

34

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

3. Retiring Member of the Board of Directors

Plan after retirement in parentheses(Effective March 27, 2012)
Member of the Board and Executive

Kazuo Kakeh〔Vice President and Senior Officer

Vice President of Bridgestone

Member of the Board

Sports Co., Ltd.

Seconded to Bridgestone Sports Co., Ltd.
Member of the Board and Executive
Vice President of BridgestoneSports Co., Ltd.;
Concurrently Advisor to Senior Vice
President, Responsible forDiversified

Products, Sports andCycle Business〕
4. Retiring Members of Corporate Auditors

Plan after retirement in parentheses(Effective March 27, 2012)
Corporate Auditor (Full-Time)

Yukimitsu Ushio

Corporate Auditor (Non-Full-Time)

Hiroshi Ishibashi

Corporate Auditor (Non-Full-Time)

Yo Takeuchi* Mr. Yo Takeuchi is an outside corporate auditor as set forth in Article 2-16 of the Corporate Law of Japan.
5. Changing Position and Responsibilities of Members of the Board of Directors
Current position and responsibilities
in parentheses(Subject to approval at the Company’s annual Shareholders' Meeting andsubsequent Board of Directors meeting on March 27, 2012)
Chairman of the Board

Shoshi Arakawa〔Chairman of the Board,
CEO and President
Representative Board Member〕

CEO and Representative Board Member

Masaaki Tsuya〔Senior Vice President
Representative Board Member
Responsible for Diversified Products,
Sports and Cycle Business;
Concurrently Chief Risk-Management
Officer,
Chief Human Rights Officer
Responsible for Corporate Administration
Chief Compliance Officer, Office ofGroup CEO, Internal Auditing〕

COO and Representative Board Member

Kazuhisa Nishigai〔Senior Vice President

Concurrently responsible for Japan

Representative Board Member

Tire

Responsible for Japan Tire Business;

Business,

Diversified Products, Sports andConcurrently responsible for

Cycle Business

Replacement Tire Sales〕* Bridgestone Corporation announced above changes on January 11, 201235

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

6. Reappointed Members of the Board of Directors

Current position and responsibilities
in parentheses(Subject to approval at the Company’s annual Shareholders' Meeting on March 27, 2012)
Member of the Board

Sakie Tachibana〔Member of the Board〕

Fukushima
Member of the Board

Takao Enkawa〔Member of the Board〕

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, Mr. Takao Enkawa, Ms. Kimiko Murofushi and Mr. Scott Trevor Davisare candidates for outside directors as set forth in Article 2-15 of the Corporate Law of Japan.

7. New Members of Corporate Officers

Current position and responsibilities
in parentheses(Effective March 27, 2012)
Vice President and Officer

Shinichi Yochi〔Director

Chief Risk-Management Officer,

Human Resources andChief Human Rights Officer

Labor Relations Division〕

Human Resources and General Affairs;
Concurrently Director,
Human Resources andLabor Relations Division
Vice President and General Counsel

Shingo Kubota

Legal Affairs;〔Director
Office of Legal Affairs〕

Concurrently Director,
Office of Legal Affairs
Vice President and Officer

Mitsuhira Shimazaki〔Director

Seconded to Bridgestone Europe NV/SA

Seconded to Bridgestone Europe NV/SA

Member of the Board,

Member of the Board,

COO of Bridgestone Europe NV/SA

COO of Bridgestone Europe NV/SA〕

Vice President and Officer

Ryutaro Ishii

Seconded to Bridgestone Europe NV/SA〔Director
Seconded to Bridgestone Europe NV/SA〕

36

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

8. Promotion of Corporate Officers

Current position and responsibilities
in parenthesis(Effective March 27, 2012)
Vice President and Senior Officer

Yuichiro Takenami〔Vice President and Officer

Responsible for Global Innovation

Central ResearchCentral Research

Chief Information Officer

Chief Information Officer

IT & Network;

IT & Network;

Concurrently Assistant to Vice President

Concurrently Assistant to Vice President

and Officer, Office of Group CEO

and Officer, Office of Corporate

External Relations;Management

Concurrently Assistant to Senior Vice

External Relations

President, Responsible for Diversified
Products, Sports and Cycle Business
External Relations〕

Vice President and Senior Officer

Minoru Shimizu〔Vice President and Officer

Responsible for Replacement Tire Sales;

Seconded to Bridgestone Tire

Concurrently Chairman and CEO ofJapan Co., Ltd.

Bridgestone Tire Japan Co., Ltd.;

Chairman and CEO of Bridgestone

Concurrently Consumer Tires Business

Tire Japan Co., Ltd.;
Concurrently Consumer Tires Business〕

Vice President and Senior Officer

Masato Hiruma

Responsible for Original Equipment〔Vice President and Officer
Original Equipment Tire Sales〕

Tire Sales
Vice President and Senior Officer ofFranco Annunziato〔Vice President and Officer ofBridgestone Corporation

Bridgestone Corporation

Member of the Board,

Member of the Board,

CEO and President andCEO and President andChief Quality Officer ofChief Quality Officer ofBridgestone Europe NV/SA

Bridgestone Europe NV/SAManaging Director of Bridgestone

Managing Director of Bridgestone

Technical Center Europe S.p.A.

Technical Center Europe S.p.A.〕

37

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2011

9. Retiring Corporate Officers

Plan after retirement in parenthesis(Effective March 27, 2012)
Vice President and Senior Officer

Yasumi Kawasaki〔Advisor〕

Takashi Urano〔Advisor〕

Toru Tsuda〔Member of the Board and Executive

Responsible for Production Technology

Vice President and Senior Officer
Responsible for Original Equipment Tire
Sales
Japan Tire Business Planning
Vice President and Officer
Seconded to Bridgestone Cycle Co., Ltd.

Vice President of Bridgestone Cycle Co.,

Member of the Board and Executive

Ltd.〕

Vice President of Bridgestone Cycle Co.,Ltd.
Vice President and Officer

Natsuki Fujii

Seconded to Bridgestone Diversified〔Chairman and CEO of Bridgestone
Diversified Products East Co., Ltd.〕

Products East Co., Ltd.
Chairman and CEO of Bridgestone
Diversified Products East Co., Ltd.

38