Financial Results for Fiscal 2016

Bridgestone Corporation
February 17, 2017

Contents

１． Business and Financial Performancefor Fiscal 2016

P. ３

２． Consolidated Projections for Fiscal 2017

P. ９Copyright © 2017 Bridgestone Corporation | Feb. 17, 20172/17

１．Business and Financial Performancefor Fiscal 2016

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

Tire Demand for 2016 : Original Equipment (vs PY) *1(Yen)

Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan

100％

101％

N. America

102％

76％

Europe105％

106％

Asia *2111％

114％

2016

(Ref.)
Fiscal2015

1sthalf2ndhalf

Full
Year

US Dollar

111

106

109

121

Euro124116

120134◆ Raw Materials
Tire Demand for 2016 : Replacement (vs PY) *1
Passenger
Radial Tires

Market trend of natural rubber and crude oil (Average)

Japan

100％

102％

N. America

101％

101％

Europe102％

103％

Asia *2

111％

2016

Truck and Bus
Radial Tires

96％*1: The numbers of demand are estimated by Bridgestone Corporation*2: Total of Thailand, Indonesia, India and China(Ref.)
Fiscal2015

1sthalf

2ndhalf

FullYear

Natural Rubber<TSR20>*3(￠/kg)

126

149

138

136

Natural Rubber<RSS#3>*3(￠/kg)

148

180

164

15539474348

Crude Oil
<WTI>(＄/bbl)*3 Source: Singapore Commodity Exchange Limited
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Consolidated Results for Fiscal 2016
Yen/US Dollar rate:
Yen/Euro rate:

121
134

1091202015
Results

2016
Resultsvs PY

Net Sales

3,790.2

3,337.0(12)3,340.0

Tires
Diversified
Products

3,174.4

2,765.7(13)

2,760.0

635.0

585.7

(8)

590.0

517.2

449.5

(13)

453.0

(Ratio) 13.6%(Ratio) 13.5%(Ratio) (0.2pt)(Ratio) 13.6%

Tires
Diversified
Products

472.7

414.7(12)

410.0

44.5

34.8(22)40.0

Ordinary Income

507.3

432.5

(15)

434.0

Extraordinary
Loss (Gain)

29.1

10.9(62)

Profit Attributable toOwners of Parent

284.2

265.5

(7)

257.0

Dividends per Share

130 yen

140 yen+10 yen

140 yen(Yen in billions)Operating Income

Note: Figures within parentheses mean minus

(12)
(14)

(%)

105117(ReferenceAug. 9, 2016
announcement)
2016 Projections

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Analysis of Consolidated Operating Income for Fiscal 2016
(Yen in billions)

500

450

400

517.2

Price, Mix,Volume etc.
(86.6)

449.5
ForeignExch. Loss(68.0)

350

SGA
(14.0)

Depreciation(2.0)

StrategicProducts+12.0

Raw
Materials
+91.0

300

2015
Operating Income
Note: Figures within parentheses mean minus(67.6)

2016
Operating Income
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Financial Results for Fiscal 2016 : Geographic Segments(Yen in billions)(ReferenceAug 9, 2016
announcement)
2016 Projections

2015
Results

2016
Resultsvs PY

Japan

1,187.8

1,080.6(9)

1,080.0

The Americas

1,941.6

1,645.3(15)

1,630.0

EMEA*

421.7

477.1

N/A*470.0

Other Regions*

838.0

621.7

N/A*

620.0

Consolidated
Net Sales

3,790.2

3,337.0(12)3,340.0

Japan

197.4

150.6

(24)

143.0

The Americas

222.5

203.1

(9)

208.0

EMEA*

21.4

27.7

N/A*

29.0

Other Regions*

68.2

62.5

N/A*

69.0

Consolidated
Operating Income

517.2

449.5

(13)

453.0

(%)

* At the beginning of fiscal year 2016, “Middle East & Africa” formerly included in the “Other regions” segment
was transferred to the “EMEA” segment as the result of the restructuring of the tire business SBUs.
Note: Figures within parentheses mean minus

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B/S and C/F Highlights for Fiscal 2016
(Yen in billions)

FY 2015

FY 2016(As of Dec. 31, 2015)(As of Dec. 31, 2016)

Total Assets

3,795.8

3,720.2(75.6)

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

2,282.0
58.2

2,345.4
61.4+63.4+3.2ptInterest-Bearing Debt (Net)14.8(128.9)(143.8)FY 2015

FY 2016vs PY

Cash Flow by Operating Activities
Cash Flow by Investing Activities

553.9(233.3)

444.5(178.2)(109.4)+55.1

Free Cash Flow

320.5

266.2(54.2)

Capital Expenditure
Depreciation

253.5
202.3

194.1
188.0

(59.4)(14.2)ROA (%)

7.3

7.1(0.3pt)ROE (%)

13.3

11.8

(1.4pt)Note: Figures within parentheses mean minus

vs Dec. 31, 2015

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２．Consolidated Projections for Fiscal 2017

Forecast of Business Environment Surrounding Bridgestone Group◆ Estimated Tire Demand◆ Currency Exchange

Tire Demand for 2017 : Original Equipment (vs PY) *1(Yen)

Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan104％

99％

N. America

96％96％

Europe99％

96％

Asia *294％

104％

20152016

2017

US Dollar

121109110Euro134120114◆ Raw Materials
Tire Demand for 2017 : Replacement (vs PY) *1
Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan98％

101％

N. America

100％

98％

Europe98％100％

Asia *2

110％

103％

*1: The numbers of demand are estimated by Bridgestone Corporation*2: Total of Thailand, Indonesia, India and China*3 Source: Singapore Commodity Exchange Limited

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Consolidated Projections for Fiscal 2017
Yen/US Dollar rate:Yen/Euro rate:

109120110114+1(6)2016Results

2017
Projectionsvs PY

Net Sales

3,337.0

3,630.0+9Tires

2,765.7

3,040.0+10

Diversified
Products

585.7

600.0+2

Operating Income

449.5

452.0+1(Ratio) 13.5%(Ratio) 12.5%(Ratio) (1.0pt)

Tires

414.7

417.0+1

Diversified
Products

34.8

35.0+1

Ordinary Income

432.5

433.0－

Profit Attributable toOwners of Parent

265.5

280.0+5

Dividends per Share

140 yen

140 yen－(Yen in billions)

Note: Figures within parentheses mean minus(%)

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Analysis of Consolidated Operating Income for Fiscal 2017
(Yen in billions)

450

400

Exchange rate
Sensitivity (full year)
350

449.5

452.0

USD：3.6bil. Yen
EUR：0.5bil. Yen
SGA(39.0)

300

Raw
Materials(137.0)Depreciation(13.0)

ForeignExch. Loss(1.0)

Strategic
Products+26.0
Price, Mix,
Volume etc.
+166.4250

2016
Operating Income
Note: Figures within parentheses mean minus+2.4

2017
Operating Income
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Financial Projections for Fiscal 2017 : Geographic Segments(Yen in billions)

2016Results

2017
Projectionsvs PY

Japan

1,080.6

1,120.0+4

The Americas

1,645.3

1,790.0+9EMEA*

477.1

550.0

N/A*

China, Asia Pacific*

621.7

620.0

N/A*

Consolidated
Net Sales

3,337.0

3,630.0+9Japan

150.6

137.0(9)The Americas

203.1

239.0+18

EMEA*

27.7

19.0

N/A*

China, Asia Pacific*

62.5

70.0

N/A*

Consolidated
Operating Income

449.5

452.0+1(％)* At the beginning of fiscal year 2017, “Russia” formerly included in the “Other regions” segment
was transferred to the “EMEA” segment as the result of the restructuring of the tire business SBUs.
Note: Figures within parentheses mean minus

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Trend of Net Sales, Operating Income, ROA, ROE

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Trend of Dividend, Pay Out Ratio

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Capital Management Initiatives
Acquisition of Treasury Stock▪ Reason of Acquisition of Treasury Stock:To enhance enterprise value by improving capital efficiency▪ Kind of shares to acquire:Common shares of the Company▪ Total number of shares to acquire :50 million shares (up to)▪ Total acquisition cost:150 billion yen (up to)▪ Timing:February 20, 2017 to December 22, 2017
▪ Cancellation of Treasury Stock:20 million shares and all the common shares acquired
from February 20, 2017 to December 22, 2017▪

Issue of the Bonds

For Future Growth Investments and Acquisition of Treasury Stock, etc.

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Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies andbeliefs and other statements that are not historical facts are forward-looking statements about the futureperformance 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 of similar meaning in connection with a discussion of future operations, financialperformance, 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 ofimportant risks and uncertainties could cause actual results to differ materially from those discussed in theforward-looking statements, and therefore you should not place undue reliance on them. You also should not
rely on any obligation of Bridgestone to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Bridgestone disclaims any such obligation.
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