Financial Results for Fiscal 2010

Bridgestone Corporation
February 18, 2011

1

Business and Financial Performance2Consolidated Results for Fiscal 20102009
Results

2010
Results(Yen in billions)

Reference
August 6, ’10
Announcement

vs. PY (%)

2010
Projections
2,900

Net Sales

2,597.0

2,861.6+10Tires2,152.9

2,379.5+11

Diversified Products

454.1

494.6+9

Operating Income

75.7

166.4+120

157

Ordinary Income

54.4

147.9+172

135

Net Income

1.0

98.9+91

94
130

88116

(6)
(14)

91
115

Yen/US dollar rate:

Yen/Euro rate:

3*Figures within parentheses mean minusAnalysis of Consolidated Operating Income for Fiscal 2010
(Yen in billions)
StrategicProducts＋30.0

Exchange ratesensitivity(full year)
1USD：1.8 bil. Yen
1EUR：0.6 bil. Yen+90.7
2009 Financial Results2010 Financial Results4Consolidated Projections for Fiscal 2011
(Yen in billions)

2010Results

2011Projections

vs. PY (%)

Net Sales

2,861.6

3,180.0+11Tires2,379.5

2,670.0+12

Diversified Products

494.6

520.0

+5

Operating Income

166.4

140.0

(16)

Ordinary Income

147.9

124.0(16)Net Income

98.9

82.0

(17)

88116

84110(4)(6)

Yen/US dollar rate:
Yen/Euro rate:

5*Figures within parentheses mean minus

Analysis of Consolidated Operating Income for Fiscal 2011
(Yen in billions)

ForeignExch. Loss
△22.0

Exchange ratesensitivity(full year)
1USD：2.0 bil. Yen
1EUR：0.9 bil. Yen△26.4
2010 Financial Results

2011 Financial Projections

6

2010 and 2011 Sales Growth of Strategic Products
Unit Sales Growth (vs. PY)

2010Results

2011
Projections

Runflat tires

135%

105%

Radial tires forpassenger cars

Ultra-high-performance tires

120%

120%

(For replacement)

Winter tires

120%

100%

Ultralarge

115%

110%

Specialty tires

Off-the-roadradial tires forconstruction andmining vehicles*

Large

130%

125%

Aircraft radial tires

115%

120%

Motorcycle radial tires

115%

110%

*The figures for off-the-road radial tires are calculated by rubber volume.
(Yen in billions)

Expansion of tire strategic products
for operating income increases (vs. PY)

+30.0

+17.0
7

Financial Results for Fiscal 2010 and Projections for Fiscal 2011:
By Business Segment(Yen in billions)

Tires

DiversifiedProducts

2009
Results

2010
Results

vs.PY(%)

2011
Projections

vs.PY(%)

Net Sales

2,152.9

2,379.5+112,670.0+12Operatingincome75.2

153.1+104

122.0(20)

Operatingincomemargin (%)

3.5

6.4

Net Sales

454.1

494.6

+9520.0+5

Operatingincome0.4

13.3+18.0+35

Operatingincomemargin (%)

0.1

2.7

*Figures within parentheses mean minus

4.6

3.5

8

Financial Results for Fiscal 2010 and Projections for Fiscal 2011:
Japan Segment(Yen in billions)

2009
Results

2010
Results

Net Sales

1,011.9

Operating
IncomeOperating Income
Margin (%)

2011
vs. PY(%)

Projections

vs. PY(%)

1,154.6+141,270.0+1014.3

61.6+328

47.0(24)

1.4

5.3

3.7

*Figures within parentheses mean minus

9

Financial Results for Fiscal 2010 and Projections for Fiscal 2011:
The Americas Segment(Yen in billions)

2009
Results

2010
Resultsvs. PY(%)

Projections

vs. PY(%)

Net Sales

1,132.8

1,223.9+81,340.0+9Operating
Income34.4

48.3+4044.0(9)Operating Income
Margin (%)

3.04.02011

3.3*Figures within parentheses mean minus

10Financial Results for Fiscal 2010 and Projections for Fiscal 2011:
Europe Segment(Yen in billions)

2009
Results

2010
Results

Net Sales

362.5

Operating
IncomeOperating Income
Margin (%)

2011vs. PY(%)

Projections

vs. PY(%)

383.8+6420.0+9(11.9)

7.1+6.0(16)

(3.3)

1.9

1.4

*Figures within parentheses mean minus

11Financial Results for Fiscal 2010 and Projections for Fiscal 2011:
Other Regions Segment(Yen in billions)

2009
Results

2010
Resultsvs. PY(%)

Projections

vs. PY(%)

Net Sales

511.5

611.9

+20

750.0+23

OperatingIncome

32.9

44.9+3748.0+7

Operating Income
Margin (%)

6.4

7.3

2011

6.4

12

B/S and C/F Highlight*Figures within parentheses mean minus
FY 2009

FY 2010(As of Dec 31, 2009)(As of Dec 31,2010)

vs.Dec 31, 2009(Yen in billions)(Yen in billions)(Yen in billions)

Total Assets

2,808.4

2,706.6(101.8)

Total Equity
Ratio of total equity to total assets (%)

1,120.7
38.7

1,176.1
42.2

+55.4
+3.5

786.3

663.1

(123.1)

Interest-Bearing Debt
Cash Flow by Operating Activities

338.6

247.7

-

Cash Flow by Investing Activities(188.2)(170.5)

-

150.4

77.2

-

Free Cash Flow

FY2009FY 2010(Yen in billions)(Yen in billions)(Yen in billions)

178.2
175.7
0.1

182.6
167.6
3.6

+4.4
(8.1)
+3.5
13

Capital Expenditure
Depreciation
ROA（％）vs.PY

Dividends(yen per share)

2010
Results

2009
Results

Interim dividend

8Year-end dividend

8Total16(＊)

2011
Projections101010102020(*) Proposed at the 92th Annual Shareholders’ Meeting held on March 29, 201114

Business Environment andBridgestone Group’s Initiatives in 201115

1. Business Environment Surrounding Bridgestone Group(3)Replacement Tire Demand for FY2011(1)Raw Material Prices Increasing at
Unprecedented Rate

<Emerging Countries Growing Their Presence>*Market trends of natural rubber andcrude oil (Average)
US$/BBL[Estimated Demand Ratioof the major markets vs. 2010]
US￠/kg(2)Currency Exchange
Projected Exchange Rate for FY2011
84yen/dollar

4yen appreciation vs. 2010,
11yen appreciation vs. MTP2010
110yen/euro 6yen appreciation vs. 2010,
10yen appreciation vs. MTP2010

Markets

PSR

TBR

Japan

97

98

N. America

101

103

Europe98

102

Thailand105

109

Indonesia

106

107

India

111

117

China

116

113

PSR: Radial tires for passenger cars
TBR: Radial tires for trucks and buses*The numbers of demand except for Japan are estimatedby Bridgestone Corporation*For Japan, referred to the figures estimated by the Japan
Automobile Tyre Manufactures Association, Inc, (JATMA)

16

2. Initiatives under the Current Business Environment(1)Reduce the Impact of Raw Materials Costs* Increase Tire Prices in All Markets
・Tire Price Percentage Increase in Major Markets since 2010
(Including those announced and to be implemented)
MarketMonth/Year

Products%

Japan

2011.Mar

TBR

Ave 7%

2011.Jun

PSR

Ave 8%

N. America

2010.JanPSR

Max 5%

2010.Jun

PSR

Max 6%

Europe2010.JulTBR

Max 6%

2010.Nov

PSR/TBR

Max 8%

2011.Feb

TBR

12%

2011.AprPSR

Max 8%

2010.Apr

PSR/TBR

3% - 5%2010.Oct

PSR/TBR3% - 6%

2011.Jan-Mar

PSR/TBR

Ave 6%

PSR: Radial tires for passenger cars
TBR: Radial tires for trucks and buses* Showing only PSR / TBR which are the main products* Showing only Bridgestone brand* Increase Penetration of RMI (Raw Materials Index)
17

2. Initiatives under the Current Business Environment(2)Cushion the Impact of Currency Appreciation◆Utilize Global Manufacturing Sites Efficiently(3)Take Necessary Actions to Address the Demand Growth
and the Change of Demand Structure◆Increase Production Volume Globally : Address the Demand GrowthTire Rubber Production Weight : 1.77 million tons in 2010 ⇒ 1.94 million tons in 2011
◆Proactive Investments to Secure Position in the Emerging Markets*Increase production capacity(Start of Production)(*1 the first half of 2013)(*2 the second half of 2013)

PSR: Radial tires for passenger cars
TBR: Radial tires for trucks and buses18

3. Initiatives for “Competing on a Different Ground” in 2011
(1) Expand strategic tire products and businesses◆Develop Products and Businesses Having Less Chance
to Be Affected by the Movement of Raw Materials Prices*Successfully Enter the Solutions Business Utilizing Retread Tires
Japan- Increase Vehicles Contracting ”Eco Value Pack”(44 Thousands Vehicles in 2010 → 60 Thousands Vehicles in 2011）*Expand Diversified Products Businesses (Ex. EVA Film for Solar Panels）◆Reinforce Strategic Products with Advanced Technological Capabilities*Increase Production Capacity of Large/Ultralarge ORR in Kitakyushu Plant
ORR: Off-the-road Tires for Construction and Mining Vehicles

Manufacturing Process of Retread Tire

EVA Films for Solar Panels

Ultralarge ORR

19

3. Initiatives for “Competing on a Different Ground” in 2011(2)Reinforce fundamental competencies(3)Secure Position in Emerging Markets◆Development of Specification Optimization ◆Launch of ECOPIA
Technical development that reduces our use ofraw materials consumption while continuing
to enhance safety, quality and environment.

In 2010, started sales in China,Thailand, Malaysia etc.
In 2011, start sales in India<Concept of Development for Achieving the Reduction in Raw Materials Use>

Apply tread gum whose wear life isdouble compared with the current one,and reduce the thickness of the tread.

◆Expansion of Retail Network
Double the strength oftread ply material, andlighten the tread ply.

Double the durability ofcompound of the sidetread, and reduce thethickness.
Bridgestone Select (India)20

4. Progress of Mid-term Management Plan 2010 (MTP2010)
Necessary Actions to Achieve “ROA 6%” in 2012
◆ Steadily Implement Initiatives Announced in MTP2010◆ Respond to a Movement of Raw Material Prices in a Timely Manner(Yen in billions)

Factors behind
operating income increase

Increase
MTP20102009→2012

Increase
Results
2009→2010

Increase Ratio

Expansion of strategic
products+65.0+30.0

46%

Rationalization

+40.0

+16.0

40%

Diversified products
business

+45.0

+15.0

33%

Unit increase, others

+55.0

+29.0

53%

21•Statements made in this presentation with respect to Bridgestone's current plans,estimates, strategies and beliefs and other statements that are not historical facts are forwardlooking statements about the future performance of Bridgestone. Forward-looking statements
include, but are not limited to, those statements using words such as "believe," "expect," "plans,""strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words ofsimilar meaning in connection with a discussion of future operations, financial performance,events or conditions. From time to time, oral or written forward-looking statements may also beincluded in other materials released to the public. These statements are based on management's
assumptions and beliefs in light of the information currently available to it. Bridgestone cautions
you that a number of important risks and uncertainties could cause actual results to differ
materially from those discussed in the forward-looking statements, and therefore you should notplace undue reliance on them. You also should not rely on any obligation of Bridgestone to updateor revise any forward-looking statements, whether as a result of new information, future events orotherwise. Bridgestone disclaims any such obligation.