Consolidated Financial Statements
for the First Half of the Fiscal Year Ending December 31, 2017
August 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.
Stock exchange listings: Tokyo, Nagoya, Fukuoka
URL:http://www.bridgestone.com/

Bridgestone Corporation
Code number:5108
Representative: Masaaki Tsuya,

Member of the Board
CEO and Representative Executive Officer
Concurrently Chairman of the Board
Contact:
Satoshi Nakamura, Treasurer, General Manager
Telephone:+81-3-6836-3100
Scheduled date of quarterly securities report submission:
Scheduled date of dividend payment commencement:
Supplementary information for the quarterly financial statements to be prepared:
Meeting to explain for the quarterly financial statements to be held:

August 10, 2017
September 1, 2017
Yes
Yes

(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Half of Fiscal 2017 (January 1, 2017 - June 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

Six months ended
1,742,847
June 30, 2017
Six months ended
1,646,567
June 30, 2016
(Note) Comprehensive Income:%Yen in millions%

Yen in millions%

Yen in millions%

5.8

202,340(7.3)

195,827(8.5)

131,839

6.9(11.3)

218,241(8.2)

213,935(8.2)

123,353(14.7)

Six months ended June 30, 2017
Six months ended June 30, 2016

Net income
per share
Six months ended
June 30, 2017
Six months ended
June 30, 2016

¥136,076 million [－%](¥126,445) million [－%]

Diluted net income
per share
Yen

Yen

169.83169.53

157.49157.25(2) Consolidated Financial Position
Total assets

Ratio of total equity tototal assets

Net assets

Yen in millions

Yen in millions%

As of June 30, 2017

3,804,981

2,341,634

60.0

As of December 31, 2016

3,716,030

2,345,899

61.5

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

¥2,283,409 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 20173,700,000
10.9
464,000(Note) Changes from the latest forecasts released: Yes

Yen in millions%

3.2

439,000

1.5

289,000

8.8

374.53

* Notes(1) Changes in principal subsidiaries during the six months ended June 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):
June 30, 2017
813,102,321 shares
December 31, 2016
813,102,321 shares
2) Number of shares of treasury stock at period end:
June 30, 2017
December 31, 2016

46,893,056 shares
29,844,837 shares

3) Average outstanding number of shares (during the first half):
First Half ended June 30, 2017776,290,082 sharesFirst Half ended June 30, 2016
783,232,525 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 February 17, 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 Half of
Fiscal 2017, (3) Explanation of Projections of Consolidated Results”, on Page 5.

Bridgestone Corporation (5108)

First half results of fiscal 2017

[Index]1. Qualitative Information for the First Half 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 half results of fiscal 2017

1. Qualitative Information for the First Half 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 1H(Six months ended
June 30, 2017)

FY 2016 1H(Six months ended
June 30, 2016)

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,742.8

1,646.5

96.2

6

Operating income

202.3

218.2

(15.9)(7)

Ordinary income

195.8

213.9

(18.1)(8)

Profit attributable to owners of parent

131.8

123.3

8.4

7

Net sales

In the first half of fiscal 2017 (January 1 to June 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 as a result of the United Kingdom
leaving the European Union and related issues. In Asia, the Chinese economic growth had shown the signs ofrecovery. 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 half of fiscal 2017 were ¥1,742.8 billion, an increase of 6% from the first half offiscal 2016; operating income was ¥202.3 billion, a decrease of 7%, ordinary income was ¥195.8 billion, adecrease of 8%, due in part to increasing raw material costs; and profit attributable to owners of parent was ¥131.8
billion, an increase of 7%.

2

Bridgestone Corporation (5108)

First half results of fiscal 20172) Segment Information
FY 2017 1H

FY 2016 1H(Six months ended(Six months ended
June 30, 2016)

June 30, 2017)
Yen in billions

Yen in billions

Increase(Decrease)
Yen in billions%

1,439.7

1,352.7

86.9

6

Operating income

185.1

198.6

(13.4)(7)

Diversified
Products

Net Sales

310.7

301.0

9.6

3

Operating income

17.1

19.5

(2.4)

(12)

Consolidated
Results

Net Sales

1,742.8

1,646.5

96.2

6

202.3

218.2

(15.9)(7)

Tires

Net Sales

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 half 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 strongly, compared to the first half of fiscal 2016. In Europe, 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 half 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
strongly, compared to the first half of fiscal 2016. In the specialty tire business, sales of large and ultra-large
off-the-road radial tires for construction and mining vehicles exceeded sales of the first half of fiscal 2016.
As a result, net sales in the tires segment during the first half of fiscal 2017 were ¥1,439.7 billion, an increase of
6% from the first half of fiscal 2016; operating income was ¥185.1 billion, a decrease of 7%, due to increasing
raw material costs.
In the diversified products segment, net sales were ¥310.7 billion, an increase of 3% from the first half of fiscal
2016; while operating income was ¥17.1 billion, a decrease of 12% due to a decrease in the profit of Domestic
Business and BSAM Diversified Product Business.
(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.

3

Bridgestone Corporation (5108)

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

(Assets)
In assets, merchandise and finished products, and intangible fixed assets increased by ¥48.8 billion and ¥35.1
billion respectively. As a result, assets increased by ¥88.9 billion compared with the end of the previous fiscal year,to ¥3,804.9 billion.

(Liabilities)
In liabilities, while accounts payable-other decreased by ¥51.4 billion, bonds increased by ¥150.0 billion. As aresult, liabilities increased by ¥93.2 billion compared with the end of the previous fiscal year, to ¥1,463.3 billion.

(Net assets)
In net assets, while profit attributable to owners of parent was ¥131.8 billion, cash dividends paid were ¥54.8
billion and a decline due to the acquisition of treasury stock was ¥78.3 billion. As a result, net assets decreased by¥4.2 billion compared with the end of the previous fiscal year, to ¥2,341.6 billion.
Consequently, the ratio of total equity to total assets decreased by 1.5 points compared with the end of theprevious fiscal year, to 60.0%.

4Bridgestone Corporation (5108)

First half 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

3,700.0

3,630.070.0

23,337.0

Operating income

464.0

452.0

12.0

3

449.5

Ordinary income

439.0

433.0

6.0

1

432.5

Profit attributable to owners of parent

289.0

280.0

9.0

3

265.5

Net sales

Exchange
Rate

Yen

Yen

%

Yen

yen/dollar

111

110

1

109

yen/euro

122

114

7

120

―

(Revision of the projections)
An actual result of net sales and profit attributable to owners of parent for the first half of the fiscal year ending
December 31, 2017, exceeded the projections previously announced on February 17, 2017, while operating
income and ordinary income was below the projections. Additionally, the Company reviewed its consolidated
financial projections for the second half of the fiscal year ending December 31, 2017, which were not updated on
May 11, 2017, and revised its full-year consolidated financial projections for the fiscal year ending December 31,
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 half 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 half results of fiscal 2017

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

FY 2017 1H(As of December 31, 2016)(As of June 30, 2017)

AssetsCurrent Assets
Cash and deposits

483,006

472,069

Notes and accounts receivable

455,218

443,109

Short-term investments

167,697

172,941

Merchandise and finished products

377,412426,283

Work in process

35,46940,226

Raw materials and supplies

144,527

156,469

Other

174,997

199,278

Allowance for doubtful accounts(16,179)(17,264)

1,822,150

1,893,114

Buildings and structures, net

526,688

520,083

Machinery, equipment and vehicles, net

505,685

492,556

Other, net

416,752

403,063

1,449,126

1,415,702

Goodwill

22,93544,266

Other

51,20865,065

Total Intangible fixed assets

74,144

109,332

Investments in securities

263,549

278,175

Total Current Assets
Fixed Assets
Tangible fixed assets

Total Tangible Fixed Assets
Intangible fixed assets

Investments and other assets
Other

108,790

110,469

Allowance for doubtful accounts(1,730)(1,812)

Total Investments and Other Assets

370,609386,831

Total Fixed Assets

1,893,880

1,911,866

Total Assets

3,716,030

3,804,981

7

Bridgestone Corporation (5108)

First half results of fiscal 2017

(Yen in millions)
FY 2016

FY 2017 1H(As of December 31, 2016)(As of June 30, 2017)

Liabilities
Current Liabilities
Notes and accounts payable

195,603

223,616

Short-term borrowings

174,678

130,111

Commercial paper―

26,541

Current portion of bonds―

20,000

1,017

1,151

Lease obligations
Income taxes payable

22,722

51,390Accounts payable-other168,714117,288

Other

287,099

266,441

Total Current Liabilities

849,834

836,540

Bonds

90,000220,000

Long-term borrowings

70,458

65,100

Lease obligations
Provision for reorganization of R&D
and manufacturing base

6,616

7,001

13,951

9,139

Net defined benefit liability

215,072

201,236

Other

124,198

124,329

Total Long-term Liabilities

520,296626,806

1,370,130

1,463,346

Common stock

126,354

126,354

Capital surplus

123,005

123,0022,163,115

2,240,022

Long-term Liabilities

Total Liabilities
Net Assets
Shareholders' Equity

Retained earnings
Treasury stock-at cost

(56,151)(134,533)

2,356,323

2,354,845

174,197

181,951(1,720)(747)

Foreign currency translation adjustments(107,242)(125,622)

Remeasurements of defined benefit plans
Total Accumulated Other Comprehensive
Income(137,698)(127,017)(72,463)(71,436)

Stock Acquisition Rights

2,975

3,704

Non-controlling Interests

59,06354,521

Total Net Assets

2,345,899

2,341,634

Total Liabilities and Net Assets

3,716,030

3,804,981

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 half results of fiscal 2017(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
First Half

(Yen in millions)

Net Sales

FY 2016 1H

FY 2017 1H(Six months ended
June 30, 2016)(Six months ended
June 30, 2017)

1,646,567

1,742,847

Cost of Sales

967,233

1,068,137

Gross Profit

679,334

674,709

Goods freightage expenses

72,79582,049Advertising and promotion expenses

61,25059,163

Salaries, allowances and bonuses

Selling, General and Administrative Expenses

125,256

128,781Retirement benefit expenses

9,447

11,002

Depreciation

15,40816,280Research and development expenses

48,10149,063

Other
Total Selling, General and
Administrative Expenses

128,831

126,028461,092

472,369

218,241

202,340

Interest income

2,139

2,144

Dividend income

5,967

5,768

Other

9,916

9,968

Total Non-operating Income

18,023

17,881

Interest expense

5,282

5,172

Foreign currency exchange loss

7,560

5,347

Other

9,487

13,875

Total Non-operating Expenses

22,33024,394

Ordinary Income

213,935

195,827

―

4,484

―

3,123

6,861

―

6,861

7,607

207,074

188,219

Income Taxes

78,79252,329

Income before Non-Controlling Interests

128,281

135,889

Operating Income
Non-operating Income

Non-operating Expenses

Extraordinary Loss
Loss related to civil litigation in the Americas
Expenses related to relocation of head officeof Americas Operations
Loss related to reorganization of R&D
and manufacturing baseTotal Extraordinary Loss
Income before Income Taxes andNon-controlling Interests

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

9

4,928

4,050

123,353

131,839Bridgestone Corporation (5108)

Consolidated Statement of Comprehensive Income
First HalfFirst half results of fiscal 2017

(Yen in millions)

Income before Non-controlling Interests

FY 2016 1H

FY 2017 1H(Six months ended
June 30, 2016)(Six months ended
June 30, 2017)

128,281

135,889(55,806)

7,753

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

1,013

1,311

Foreign currency translation adjustments(222,932)(18,521)

Remeasurements of defined benefit plans

24,948

10,283

Share of other comprehensive income inaffiliates(1,949)(640)(254,726)

186(126,445)

136,076(124,174)

132,866(2,270)3,209

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

10Bridgestone Corporation (5108)

First half 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 (17,053,400 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 ¥78,382 million
compared with the end of the previous fiscal year, to ¥134,533 million.

(Segment Information)
Information about Sales and Income (Loss) by reportable segment
FY 2016 First Half (Six months ended June 30, 2016)(Yen in millions)

Diversified
Products

Tires

Adjustments

Total

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

1,349,476

297,090

1,646,567

3,299

3,996

7,296

(7,296)―

1,352,775

301,087

1,653,863(7,296)

1,646,567

198,627

19,599218,227

14

218,241

Inter-segment

1,646,567(Note) Adjustments of segment income refer to elimination of intersegment transactions.

FY 2017 First Half (Six months ended June 30, 2017)(Yen in millions)

Diversified
Products

Tires

Adjustments

Total(Note)

Consolidated

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

1,434,956

307,891

1,742,847

4,811

2,828

7,640

(7,640)―1,439,768

310,719

1,750,488(7,640)1,742,847

185,178

17,175

202,353(13)

202,340(Note) Adjustments of segment income refer to elimination of intersegment transactions.

11

1,742,847