Consolidated Financial Statements
for the First Three Quarters of the Fiscal Year Ending December 31, 2017
November 9, 2017
These financial statements, prepared in accordance with accounting principles generally accepted in Japan, havebeen translated for reference only from the original Japanese-language document "KESSAN TANSHIN". The
entire format is pursuant to the requirements or guidance of Tokyo Stock Exchange. As for the contents, if there
are any differences or discrepancies between the original Japanese-language and the English translation, theoriginal Japanese-language supersedes this English translation.
Bridgestone Corporation
Code number:5108
Representative: Masaaki Tsuya,

Stock exchange listings: Tokyo, Nagoya, Fukuoka
URL:http://www.bridgestone.com/

Member of the Board
CEO and Representative Executive Officer
Concurrently Chairman of the Board
Contact:
Satoshi Nakamura, General Manager, Investor Relations
Telephone:+81-3-6836-3100
Scheduled date of quarterly securities report submission:
November 10, 2017
Scheduled date of dividend payment commencement:
Supplementary information for the quarterly financial statements to be prepared:
Yes
Meeting to explain for the quarterly financial statements to be held:Yes(for institutional investors and analysts)(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Three Quarters of Fiscal 2017 (January 1, 2017 - September 30, 2017)(1) Consolidated Operating Results(Percentage figures represent changes from the same period of previous year)
Profit attributable toOperating income
Ordinary income
owners of parent

Net sales
Yen in millions

Nine months ended
2,663,080
September 30, 2017
Nine months ended
2,444,802
September 30, 2016
(Note) Comprehensive Income:%Yen in millions%

Yen in millions%

Yen in millions%

8.9

299,736(9.0)

288,652(9.9)

197,771

8.0(13.2)

329,425(13.0)

320,384(12.4)

183,057(6.2)

Nine months ended September 30, 2017
Nine months ended September 30, 2016

Net income
per share

Diluted net income
per share
Yen

Yen

256.35255.89233.72233.36

Total assets

Net assets

Nine months ended
September 30, 2017
Nine months ended
September 30, 2016

¥238,729 million [－%](¥71,873) million [－%]

(2) Consolidated Financial Position
Ratio of total equity tototal assets

Yen in millions

Yen in millions%

As of September 30, 20173,829,535

2,347,898

59.8

As of December 31, 2016

3,716,030

2,345,899

61.5

As of September 30, 2017
As of December 31, 2016

¥2,289,259 million¥2,283,860 million(Reference) Total equity:

2. Dividends
1st quarterend

2nd quarter
end

Yen

Yen

Annual Dividend
3rd quarter
end
Yen

－
70.00
－
FY 2016－
70.00－
FY 2017
FY 2017(Projection)(Note) Changes from the latest forecasts released: No

Year -end

Total

Yen

Yen

70.00

140.0070.00

140.003. Consolidated Projected Results for Fiscal 2017 (January 1, 2017 - December 31, 2017)(Percentage figures represent changes from the same period of previous year)
Profit attributable to
Net income
Operating income
Ordinary income
owners of parent
per share

Net sales

Yen in millions%

Yen in millions%

Yen in millions%

Yen

FY 20173,650,000
9.4
430,000(Note) Changes from the latest forecasts released: Yes

Yen in millions

%

(4.3)

400,000(7.5)

290,000

9.2

377.43

* Notes(1) Changes in principal subsidiaries during the nine months ended September 30, 2017 : No
(Changes in specified subsidiaries involving change in consolidation scope)(2) Application of special accounting treatments for consolidated quarterly financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting standards, etc. : No
2) Changes in accounting policy other than 1): Yes3) Changes in accounting estimates: No4) Restatements: No(4) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
September 30, 2017
813,102,321 shares
December 31, 2016
813,102,321 shares
2) Number of shares of treasury stock at period end:
September 30, 2017
December 31, 2016

55,254,010 shares
29,844,837 shares

3) Average outstanding number of shares (during the first three quarters):
First Three Quarters ended September 30, 2017
771,498,418 sharesFirst Three Quarters ended September 30, 2016
783,236,067 shares* Implementation status about the quarterly review
These financial statements are exempt from quarterly review.
* Statement regarding appropriate use of forward-looking statements and other notes
Projections of consolidated results for fiscal 2017 announced on August 9, 2017 are revised in this document. The
preceding descriptions of projections and plans are “forward-looking statements,” which involve known andunknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual performance andfinancial results to differ substantially from management’s projections and plans, and the statements are notguarantees of future business performance. For details, refer to “1. Qualitative Information for the First Three
Quarters of Fiscal 2017, (3) Explanation of Projections of Consolidated Results”, on Page 5.

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017

[Index]1. Qualitative Information for the First Three Quarters of Fiscal 2017

…P2

(1) Explanation of Consolidated Operating Results…P2(2) Explanation of Consolidated Financial Position…P4(3) Explanation of Projections of Consolidated Results…P5

2. Other Information (Notes)…P6(1) Application of Special Accounting Treatments for Consolidated Quarterly Financial Statements…P6(2) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements…P6

3. Consolidated Quarterly Financial Statements…P7(1) Consolidated Balance Sheet…P7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…P9

Consolidated Statement of Income…P9

Consolidated Statement of Comprehensive Income…P10(3) Notes to the Consolidated Financial Statements…P11(Notes regarding going concern assumption)…P11(Notes regarding significant changes in the amount of shareholders’ equity)…P11(Segment Information)

…P11

1

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017

1. Qualitative Information for the First Three Quarters of Fiscal 2017
The Bridgestone Corporation is referred to as the “Company”, and the Company and its subsidiaries are referred
to as the “Companies”.
(1) Explanation of Consolidated Operating Results
1) Sales and earnings
FY 2017 3Q(Nine months ended
September 30, 2017)

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

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

2,663.0

2,444.8

218.2

9Operating income

299.7

329.4

(29.6)(9)

Ordinary income

288.6

320.3

(31.7)(10)

Profit attributable to owners of parent

197.7

183.0

14.7

8

Net sales

In the first three quarters of fiscal 2017 (January 1 to September 30, 2017), the operating environment
surrounding the Companies was as follows: an unclear situation continued due to the uncertainty of the global
economy while the Japanese domestic economy continued gradual recovery. The United States economy
continued steady recovery. The European economy continued to show gradual recovery but remained unstable asa result of the United Kingdom leaving the European Union and related issues. In Asia, the Chinese economic
growth had shown the signs of recovery. Overall, overseas economies were gradually recovering but still weak
while the political and economic situation remained unstable. In addition, tire demand for mining vehicles increased
along with rising commodity prices.
Under these operating conditions, the Companies continued their work to realize the ultimate goal of becoming “atruly global company” and achieving “Dan-Totsu in all aspects of its business.” Stepping up efforts on a global scale,
we focused on promoting brand strategies through sponsorship and support activities for the Olympic andParalympic Games Tokyo 2020. The Companies also expanded sales of highly competitive products and services
in global markets through promoting innovation, while building and enhancing a solutions business that extends
beyond the mere sales of products. Moreover, the Companies continuously strives to implement various measures
for management reform, aimed at reforming governance structure and effectively utilizing management resources
by investing appropriate costs.
As a result, net sales in the first three quarters of fiscal 2017 were ¥2,663.0 billion, an increase of 9% from the first
three quarters of fiscal 2016; operating income was ¥299.7 billion, a decrease of 9%, ordinary income was ¥288.6
billion, a decrease of 10%, due in part to increasing raw material costs; and profit attributable to owners of parent
was ¥197.7 billion, an increase of 8%.

2

Bridgestone Corporation (5108)

First three quarters results of fiscal 20172) Segment Information

Tires

Net Sales

FY 2017 3Q

FY 2016 3Q(Nine months ended
September 30, 2017)(Nine months ended
September 30, 2016)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

2,207.4

2,013.0

194.4

10Operating income

274.4

300.3

(25.9)(9)

Diversified
Products

Net Sales

467.2

442.5

24.6

6

Consolidated
Results

Net Sales

Operating income

25.3

29.0

(3.6)

(13)

2,663.0

2,444.8

218.2

9

299.7

329.4

(29.6)(9)

Operating income

In the tire segment, the Companies worked to maximize sales momentum by introducing appealing new
products globally, reinforcing fundamental competencies, and responding promptly to demand fluctuation ineach region. In addition, the Companies implemented price increases appropriately to respond to the rising
prices of raw materials, which started in the previous year.
In Japan, the unit sales of tires for passenger cars and light trucks increased strongly, and the unit sales of tires
for trucks and buses increased substantially, compared to the first three quarters of fiscal 2016. In the Americas,
the unit sales of tires for passenger cars and light trucks in North America decreased, but the unit sales of tires
for trucks and buses increased steadily, compared to the first three quarters of fiscal 2016. In Europe, the unit
sales of tires for passenger cars and light trucks, and the unit sales of tires for trucks and buses increased
steadily, compared to the first three quarters of fiscal 2016. In China and Asia Pacific, the unit sales of tires forpassenger cars and light trucks increased steadily, and the unit sales of tires for trucks and buses increased
substantially, compared to the first three quarters of fiscal 2016. In the specialty tire business, sales of large andultra-large off-the-road radial tires for construction and mining vehicles increased substantially compared to thefirst three quarters of fiscal 2016.
As a result, net sales in the tires segment during the first three quarters of fiscal 2017 were ¥2,207.4 billion, an
increase of 10% from the first three quarters of fiscal 2016; operating income was ¥274.4 billion, a decrease of
9%, due to increasing raw material costs.
In the diversified products segment, net sales were ¥467.2 billion, an increase of 6% from the first threequarters of fiscal 2016; while operating income was ¥25.3 billion, a decrease of 13% due to a decrease in the
profit of Domestic Business.
(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.

3

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017(2) Explanation of Consolidated Financial Position
Assets, liabilities, and net assets positions at the end of the first three quarters of fiscal 2017 were as follows.

(Assets)
In assets, notes and accounts receivable, merchandise and finished products, and intangible fixed assets
increased by ¥30.7 billion, ¥38.2 billion and ¥35.6 billion respectively. As a result, assets increased by ¥113.5
billion compared with the end of the previous fiscal year, to ¥3,829.5 billion.

(Liabilities)
In liabilities, while short-term borrowings decreased by ¥51.8 billion, bonds increased by ¥150.0 billion. As aresult, liabilities increased by ¥111.5 billion compared with the end of the previous fiscal year, to ¥1,481.6 billion.

(Net assets)
In net assets, while cash dividends paid were ¥108.4 billion and a decline due to the acquisition of treasury stockwas ¥118.2 billion, profit attributable to owners of parent was ¥197.7 billion, net unrealized gain on
available-for-sale securities, foreign currency translation adjustments and remeasurements of defined benefit
plans increased by ¥12.2 billion, ¥7.0 billion and ¥14.0 billion respectively. As a result, net assets increased by¥1.9 billion compared with the end of the previous fiscal year, to ¥2,347.8 billion.
Due to an increase of assets by ¥113.5 billion, the ratio of total equity to total assets decreased by 1.7 points
compared with the end of the previous fiscal year, to 59.8%.

4

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017(3) Explanation of Projections of Consolidated Results
The Companies' operating environment will continue to require careful attention due to such factors asfluctuations in exchange rates and the prices of raw materials and feedstock, an ongoing lack of clarity in the
global economic situation and international political conditions that remain unstable.
Amid such a challenging business environment, the Companies project the following results through theimplementation of Mid-Term Management Plan initiatives.
.
FY 2017 projections (Fiscal Year ending December 31, 2017)
FY 2017 Projections(Revised)

FY 2017 Projections(Previous)

Increase(Decrease)(Ref.)FY 2016 Results

Yen in billions

Yen in billions

Yen in billions%

Yen in billions

3,650.03,700.0(50.0)(1)

3,337.0

Operating income

430.0

464.0

(34.0)(7)

449.5

Ordinary income

400.0

439.0

(39.0)(9)432.5

Profit attributable to owners of parent

290.0

289.0

1.0

－

265.5

Yen

Yen

%

Yen

yen/dollar

111

111

－

109

yen/euro

126

122

3

120

Net sales

Exchange
Rate―(Revision of the projections)
Based on the operating performance of the first three quarters of fiscal 2017, the Company revised its full-year
consolidated financial projections for the fiscal year ending December 31, 2017, which were previously announced
on August 9, 2017.

Forward-Looking Statements
The preceding descriptions of projections and plans are “forward-looking statements,” which involve known andunknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual performance andresults to differ substantially from management’s projections and plans, and the statement are not guarantees of
future business performance.

5

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017

2. Other Information (Notes)(1) Application of Special Accounting Treatments for Consolidated Quarterly Financial Statements(Calculation for income tax expense)
Income tax expense was calculated based upon an estimated effective tax rate for fiscal 2017.
(2) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements
Changes in accounting policy(Application of International Financial Reporting Standards (IFRS) to Foreign Subsidiaries)
BRIDGESTONE EUROPE NV/SA (BSEU) has applied IFRS from the first quarter of fiscal 2017, formerly"Generally Accepted Accounting Principles (US GAAP)". In determining initial application of IFRS in BSEU,
the Company comprehensively evaluates factors including accounting trends and the plan for voluntary
application of IFRS as the Companies.
As BSEU applied the revision in this policy retrospectively and the cumulative effect of the revision wasreflected on the net assets at the beginning of fiscal 2016, the consolidated financial statements for theprevious fiscal year changed. The main changes were as follows: retained earnings at the beginning ofprevious fiscal year decreased ¥7,280 million and foreign currency translation adjustments increased ¥7,667
million.

6

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
FY 2016

FY 2017 3Q(As of December 31, 2016)(As of September 30, 2017)

Cash and deposits

483,006

421,951

Notes and accounts receivable

455,218

485,944

Short-term investments

167,697

194,998

Merchandise and finished products

377,412415,617Work in process

35,46941,863

Raw materials and supplies

144,527

157,293

Other

174,997

197,128

AssetsCurrent Assets

Allowance for doubtful accounts(16,179)(18,274)

1,822,150

1,896,522

Buildings and structures, net

526,688522,477

Machinery, equipment and vehicles, net

505,685

488,473

Other, net

416,752

412,626

1,449,126

1,423,578

Goodwill

22,93544,068

Other

51,20865,735

Total Intangible fixed assets

74,144

109,803

Investments in securities

263,549

288,309

Other

108,790

113,138

Allowance for doubtful accounts(1,730)(1,816)

Total Investments and Other Assets

370,609399,631

Total Fixed Assets

1,893,880

1,933,012

Total Assets

3,716,030

3,829,535

Total Current Assets
Fixed Assets
Tangible fixed assets

Total Tangible Fixed Assets
Intangible fixed assets

Investments and other assets

7

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017

(Yen in millions)
FY 2016

FY 2017 3Q(As of December 31, 2016)(As of September 30, 2017)

Notes and accounts payable

195,603

224,073

Short-term borrowings

174,678

122,779―

18,429Liabilities
Current Liabilities

Commercial paper―

20,000

Lease obligations

1,017

1,159

Income taxes payable

22,72245,500―8,908

Accounts payable-other168,714125,964

Other

287,099

287,206

Total Current Liabilities

849,834

854,022

Bonds

90,000220,000

Long-term borrowings

70,45865,852

Lease obligations

6,616

6,930

Provision for reorganization of R&D
and manufacturing base

13,951―

Net defined benefit liability

215,072

200,198

Other

124,198

134,631

Total Long-term Liabilities

520,296627,6141,370,130

1,481,636

Common stock

126,354

126,354

Capital surplus

123,005

122,988

2,163,115

2,252,319

Current portion of bonds

Provision for reorganization of R&D
and manufacturing baseLong-term Liabilities

Total Liabilities
Net Assets
Shareholders' Equity

Retained earnings
Treasury stock-at cost

(56,151)(174,447)

2,356,323

2,327,214

174,197

186,458(1,720)(586)

Foreign currency translation adjustments(107,242)(100,188)

Remeasurements of defined benefit plans(137,698)(123,639)

Total Accumulated Other Comprehensive
Income(72,463)(37,955)

Stock Acquisition Rights

2,975

3,665

Non-controlling Interests

59,06354,973

Total Net Assets

2,345,899

2,347,898

Total Liabilities and Net Assets

3,716,030

3,829,535

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

8

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
First Three Quarters(Yen in millions)
FY 2016 3Q

FY 2017 3Q(Nine months ended
September 30, 2016)(Nine months ended
September 30, 2017)

Net Sales

2,444,802

2,663,080

Cost of Sales

1,437,975

1,653,396

Gross Profit

1,006,827

1,009,683

Goods freightage expenses

109,063

124,841

Advertising and promotion expenses

86,051

85,660

Salaries, allowances and bonuses

184,319

193,823

Retirement benefit expenses

14,125

18,681

Depreciation

23,33524,719Research and development expenses

71,09773,035

Other

189,408

189,185

Total Selling, General and
Administrative Expenses

677,401

709,947

Operating Income

329,425

299,736

Interest income

3,215

3,924

Dividend income

6,382

6,202

Gain on sales of investment securities

4,769

―

Other

9,009

12,293

Total Non-operating Income

23,37622,420Interest expense

7,967

7,881

Foreign currency exchange loss

10,193

7,082

Other

14,256

18,539Total Non-operating Expenses

32,41833,504

Ordinary Income

320,384

288,652

Gain on sales of investment securities―

10,441

Total Extraordinary Income―

10,441

Loss related to civil litigation in the Americas

―

4,484

Expenses related to relocation of head officeof Americas Operations
Loss related to reorganization of R&D
and manufacturing base

―

3,831

17,649―17,6498,316

Income before Income Taxes andNon-controlling Interests

302,735

290,777

Income Taxes

112,454

86,296

Income before Non-Controlling Interests

190,280

204,480

7,223

6,709

183,057

197,771

Selling, General and Administrative Expenses

Non-operating Income

Non-operating Expenses

Extraordinary Income

Extraordinary Loss

Total Extraordinary Loss

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent

9

Bridgestone Corporation (5108)

First three quarters results of fiscal 2017

Consolidated Statement of Comprehensive Income
First Three Quarters(Yen in millions)

Income before Non-controlling Interests

FY 2016 3Q

FY 2017 3Q(Nine months ended
September 30, 2016)(Nine months ended
September 30, 2017)

190,280

204,480(44,908)

12,244461

1,356

Foreign currency translation adjustments(244,257)

7,496

Remeasurements of defined benefit plans
Share of other comprehensive income inaffiliates

28,832

13,668(2,281)(516)(262,154)

34,248(71,873)

238,729(71,453)

232,279

(420)

6,449

Other Comprehensive Income (loss)
Unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivative instruments

Total Other Comprehensive Income
Comprehensive Income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

10Bridgestone Corporation (5108)

First three quarters results of fiscal 2017(3) Notes to the Consolidated Financial Statements(Notes regarding going concern assumption)
Not applicable(Notes regarding significant changes in the amount of shareholders’ equity)
The company acquired its own shares (25,439,900 shares) based on the resolution at the board of directors
held on February 17, 2017. Due mainly to the acquisition, treasury stock - at cost increased by ¥118,296 million
compared with the end of the previous fiscal year, to ¥174,447 million.

(Segment Information)
Information about Sales and Income (Loss) by reportable segment(Yen in millions)

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

Tires

Total

Adjustments

Consolidated(Note)Net sales:
External customers

2,008,284

Segment income(Operating income)

2,444,802―

2,444,802

4,756

6,007

10,764(10,764)―

2,013,040

442,525

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

300,395

29,016

329,41114

329,425

Inter-segment
Total

436,518(Note) Adjustments of segment income refer to elimination of intersegment transactions.

(Yen in millions)

FY 2017 First Three Quarters (Nine months ended September 30, 2017)
Diversified
Products

Tires

Total

Adjustments(Note)

Consolidated

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

2,199,930

463,150

2,663,080

7,515

4,052

11,567(11,567)―

2,207,445

467,2022,674,648(11,567)

2,663,080

274,453

25,337299,791(54)

299,736(Note) Adjustments of segment income refer to elimination of intersegment transactions.

11

2,663,080