Consolidated Financial Statements for the Fiscal Year Ended December 31, 2014
February 17, 2015
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, Nagoya, Fukuoka
Code number:5108
URL:http://www.bridgestone.co.jp
Representative: Masaaki Tsuya, CEO and Representative Board Member, Concurrently Chairman of the Board
Contact:
Tsuyoshi Yoshimi, Director Finance Division, Treasurer, General Manager
Telephone:+81-3-6836-3100
Scheduled date of annual shareholders’ meeting:March 24, 2015
Scheduled date of securities report submission:
March 24, 2015
Scheduled date of dividend payment commencement:
March 25, 2015
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 2014(January 1, 2014 - December 31, 2014)(Percentage figures represent changes from the same period of previous year)(1) Consolidated Operating Results
Net sales

Operating income

Yen in millions%

3,673,964
3,568,091

3.0
17.4

Fiscal 2014
Fiscal 2013

Yen in millions

Net income
per share%

478,038
438,131
Fiscal 2014
Fiscal 2013

(Reference) Comprehensive Income:Diluted net income
per share
Yen

Fiscal 2014
383.84
Fiscal 2013
258.10(Reference) Equity in earnings of affiliates:

Ordinary income

9.1
53.2

Net income

Yen in millions%

Yen in millions%

300,589
202,05348.8
17.7

463,2126.5
434,79352.5¥ 343,697 million [(28.4%)]¥ 480,288 million [73.4%]

Net return on Total
equityOrdinary income/ Total assets

Operating income
margin

Yen

%

%

%

383.39257.81
Fiscal 2014
Fiscal 2013

15.5
12.7
¥ 4,099 million¥ 3,819 million

12.3
13.1

13.0
12.3

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

3,960,908
3,577,045

2,146,657
1,862,963
Fiscal 2014
Fiscal 2013

52.4
50.5

2,650.47
2,305.64

Fiscal 2014
Fiscal 2013
(Reference) Total equity¥ 2,075,685 million¥ 1,805,285 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

428,621471,771(305,696)(265,229)(67,935)(183,722)

390,181324,596

Fiscal 2014
Fiscal 2013

2. Dividends
1stquarterend

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

Yen

Fiscal 2013
Fiscal 2014
Fiscal 2015
(Projection)

Yen

Yen

Total

Dividends
Pay-out
ratio(Consolidated)

Total
dividends

Ratio ofdividends
to total equity(Consolidated)

Yen

Yen

Yen in millions

%

%

－
－

27.00
40.00

－
－

30.00
60.00

57.00
100.0044,62878,313

22.1
26.1

2.8
4.0

－

60.00

－

60.00

120.0029.5

3. Consolidated Projected Results for Fiscal 2015 (January 1, 2015 - December 31, 2015)(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 2015

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

1,880,000
3,980,000

7.4
8.3

232,000
519,000

4.0
8.6

226,000
501,000

2.7
8.2

138,000
319,000(3.0)
6.1

176.22407.35

* Notes(1) Changes in principal subsidiaries during fiscal 2014 : No
(Changes in specified subsidiaries involving change in consolidation scope)(2) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting standards, etc. : Yes
2) Changes in accounting policy other than 1): No3) Changes in accounting estimates: No4) Restatements: No(3) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
December 31, 2014
813,102,321 shares
December 31, 2013
813,102,321 shares
2) Number of shares of treasury stock at period end
December 31, 2014
December 31, 2013

29,965,086 shares
30,115,568 shares

3) Average outstanding number of shares (during the fiscal year)
December 31, 2014
783,111,356 shares
December 31, 2013
782,860,668 shares(Reference) Summary of Non-consolidated Results(January 1, 2014 - December 31, 2014)(1) Non-consolidated Operating Results
Net sales
Fiscal 2014
Fiscal 2013

(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%

990,746
1,006,602

(1.6)
7.2

195,142205,311

(5.0)
47.4

227,714
221,849

2.6
42.4

112,542
90,19824.8(1.9)

Net income
per share
Fiscal 2014
Fiscal 2013

Diluted net income
per share
Yen

Yen

143.71115.22143.54115.09(2) Non-consolidated Financial Position
Total assets
Fiscal 2014
Fiscal 2013
(Reference) Total equity

Net assets

Ratio of total equity tototal assets

Total equity per share

Yen in millions

Yen in millions%

Yen

1,990,424
1,895,359

1,401,049
1,345,357
Fiscal 2014
Fiscal 2013

70.3
70.9

1,786.53
1,716.16¥ 1,399,103 million¥ 1,343,736 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
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 statements are not guarantees of
future business performance. For further details, please see page 4, “Projections for fiscal 2015.”

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

[ Index ]1. Operating Results…P2(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 2014 and 2015…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…P10(1) Consolidated Balance Sheet…P10(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…P12

Consolidated Statement of Income…P12

Consolidated Statement of Comprehensive Income…P13(3) Consolidated Statement of Changes in Net Assets…P14(4) Consolidated Statement of Cash Flows…P16(5) Notes to the consolidated financial statements…P18(Notes regarding going concern assumption)…P18(Basic important matters for preparation of consolidated financial statements)…P18(Changes in accounting policy, etc)

…P21

(Changes in presentation)…P22(Consolidated Balance Sheet)…P23(Consolidated Statement of Income)…P24(Consolidated Statement of Changes in Net Assets)…P26(Consolidated Statement of Cash Flows)…P28(Segment Information)…P29(Per share information)…P31(Significant subsequent events)…P32

5. Other…P33(1) Senior Management Changes

…P33

1

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

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 2014]
1) Sales and earnings
Fiscal 2014

Net sales

Increase(Decrease)

Fiscal 2013

Yen in billions

Yen in billions

Yen in billions%

3,673.9

3,568.0

105.8

3Operating income

478.0

438.1

39.9

9

Ordinary income

463.2

434.7

28.4

7

Net income

300.5

202.0

98.5

49

During fiscal 2014 (January 1 to December 31, 2014), the Companies’ operating environment was as follows:
according with rapid weaking of Japanese Yen and oil price toward the latter part of the fiscal year, the domestic
economy continued gradual recovery due to the effectiveness of economic and monetary policies. However, it
still remained uncertain because of weaker demand after increase of consumption rate. The United States
economy continues gradual recovery due to an increase in consumer spending. The European economy has
been affected by geopolitical risks, although it has shown the signs of recovery. The Asian economic expansion
continues to slow down, particularly in China and India. In addition, economic stagnation continued in Thailand.
Overall, weak recovery by many overseas economies continued despite an uncertain business environment.
Under these operating conditions, the Companies continued their work to realize the ultimate goal of becoming“a truly global company” and achieving “Dan-Totsu in all aspects of our business.” Stepping up efforts on a global
scale, the Companies were working harder than ever to anticipate market trends and competitors’ movements, aswell as enhance technologies and promote innovation to increase the sales of highly competitive products andservices, and building and enhancing business models to extend beyond the mere sales of products. Moreover,
the Companies were striving to rapidly implement a range of initiatives to increase the sales of strategic products,
strengthen supply capacity, improve manufacturing productivity, effectively utilize management resources, anddevelop eco-friendly products and businesses.
As a result, net sales in fiscal 2014 were ¥3,673.9 billion, an increase of 3% from fiscal 2013; operating income
was ¥478.0 billion, an increase of 9%; ordinary income was ¥463.2 billion, an increase of 7%; and net income
was ¥300.5 billion, an increase of 49%.

2

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

2) Segment Information

Fiscal 2014

Increase(Decrease)

Fiscal 2013

Yen in billions

Yen in billions

Yen in billions%

3,093.3

3,036.9

56.4

2

Operating income

435.8

399.4

36.3

9

Diversified
Products

Net Sales

601.8

546.2

55.6

10

Operating income

42.1

38.5

3.6

9

Consolidated
Results

Net Sales

3,673.9

3,568.0

105.8

3

478.0

438.1

39.9

9

Net Sales
Tires

Operating income

In the tires segment, the Companies worked to maximize sales momentum by introducing appealing new
products globally, enhancing strategic products and reinforcing fundamental competencies such as specification
optimization, and responding promptly to demand fluctuation in each region.
In Japan, due to last-minute demand associated with an increase in consumption tax rate, the unit sales of tires
for passenger cars and light trucks increased steadily and the unit sales of tires for trucks and buses increased
strongly compared to fiscal 2013. In the Americas, the unit sales of tires for passenger cars and light trucks inNorth America increased steadily and the unit sales of tires for trucks and buses increased strongly compared tofiscal 2013. In Europe, the unit sales of tires for passenger cars and light trucks decreased and the unit sales oftires for trucks and buses increased strongly compared to fiscal 2013. In Asia Pacific, the unit sales of tires forpassenger cars and light trucks remained unchanged from fiscal 2013 and the unit sales of tires for trucks andbuses increased steadily compared to fiscal 2013. In China, the unit sales of tires for passenger cars and lighttrucks increased strongly and the unit sales of tires for trucks and buses decreased substantially compared tofiscal 2013.
As a result, net sales and operating income in the tires segment during fiscal 2014 totaled ¥3,093.3 billion and¥435.8 billion, an increase of 2% and an increase of 9% from fiscal 2013, respectively.
In the diversified products segment, net sales totaled ¥601.8 billion, an increase of 10% from fiscal 2013, andoperating income was ¥42.1 billion, an increase of 9% from fiscal 2013 due to an increase 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) Consolidated Financial Statements for fiscal 2014

[Projections for fiscal 2015]
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 feedstocks, 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.
Fiscal 2015
projections

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,880.0

1,750.2

129.7

7

Operating income

232.0

223.1

8.8

4

Ordinary income

226.0

219.9

6.0

3

Net income

138.0

142.2

(4.2)

(3)

Net sales

3,980.0

3,673.9306.0

8Operating income

519.0

478.0

40.9

9

Ordinary income

501.0

463.2

37.7

8

Net income

319.0

300.5

18.4

6

Yen

Yen

yen/dollar

115

102

yen/euro136

140

yen/dollar

115

106

8

yen/euro

136

140

(3)

Net salesFirst half

Fiscal 2014

Full-year

First half
Exchange
rate

13
－

(3)

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 Bridgestone Group’s actual performanceand results to differ substantially from management’s projections and plans, and the statement are notguarantees of future business performance.

4

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(2) Analysis of Financial Position
1) Cash flow

Fiscal 2014

Increase(Decrease)

Fiscal 2013

Yen in billions

Yen in billions

Yen in billions

Net cash provided by operating activities

428.6

471.7

(43.1)Net cash used in investing activities(305.6)(265.2)(40.4)Net cash used in financing activities(67.9)(183.7)115.7

Effect of exchange rate changes
on cash and cash equivalents

10.5

32.3

(21.7)Net increase (decrease)in cash and cash equivalents

65.5

55.1

10.4

At beginning of year

324.5

269.4

55.1

At end of year

390.1

324.5

65.5

Cash and cash
equivalents

The Companies’ cash and cash equivalents increased ¥65.5 billion during 2014, to ¥390.1 billion, compared withan increase of ¥55.1 billion during the prior year.
(Cash flow by operating activities)
Net cash provided by operating activities decreased ¥43.1 billion during 2014, compared with the prior year, to¥428.6 billion. The principal contributors in that cash provided included income before income taxes and minority
interests of ¥477.7 billion, compared with ¥340.0 billion during the prior year, depreciation and amortization of¥188.3 billion, compared with ¥176.1 billion during the prior year. These contributors offset a decrease in net
defined benefit liability of ¥26.2 billion, payment related to US antitrust laws of ¥43.6 billion, payment related torecall of ¥11.6 bilion and income taxes paid of ¥128.0 billion, compared with ¥176.1 billion during the prior year.
(Cash flow by investing activities)
Net cash used in investing activities increased ¥40.4 billion compared with the prior year, to ¥305.6 billion. The
principal contributor in that cash used included payments of ¥288.3 billion for purchase of tangible assets,compared with payments of ¥267.0 billion during the prior year. The contributor offsets proceeds from sales oftangible asset of ¥10.9 billion, compared with ¥10.0 billion during the prior year.
(Cash flow by financing activities)
Net cash used in financing activities decreased ¥115.7 billion compared with the prior year, to ¥67.9 billion.
The principal contributors in that cash used included net decrease repayments for long-term borrowings of¥121.6 billion, compared with ¥67.4 billion during the prior year, payments for redemption of bonds of ¥63.8
billion, compared with ¥61.9 billion during the prior year, and payments for cash dividends paid of ¥54.7 billion,
compared with ¥33.6 billion during the prior year. These contributors offset proceeds from long-term borrowingsof ¥99.3 billion, compared with ¥12.8 billion during the prior year, and proceeds from issuance of bonds of ¥70.0
billion, compared with ¥50.0 billion in the prior year.

5Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

2) Trends in cash flow indicators

Fiscal 2012

Fiscal 2013

Fiscal 2014

Ratio of total equity to total assets (%)

45.2

50.5

52.4

Total equity ratio on market value basis (%)

57.3

87.1

83.0

Interest-bearing debt / cash flow ratio(years)

1.5

1.2

1.4

Interest coverage ratio(times)

24.2

31.8

29.0

(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 2014 and 2015
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. In regard to distributing profits to shareholders, the Company conducts shareholder
returns while maintaining an appropriate financial position and securing the internal revenues necessary for future
growth investments. In determining dividend payments, the Company comprehensively evaluates factors including
business results, financial condition for the relevant fiscal period, medium-term earnings forecasts, investment
plans, and cash flows. Based on these considerations, the Company strives to live up to expectations ofshareholders by issuing stable dividend payments targeting a consolidated payout ratio of 20%–40%.
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 andoverseas.
For the fiscal 2014, the Company plans to pay a cash dividend of ¥100 per share, comprising a year-end cash
dividend of ¥60 per share and an interim cash dividend of ¥40 per share.
For the fiscal 2015, the Company plans to pay a cash dividend of ¥120 per share, comprising a year-end cash
dividend of ¥60 per share and an interim cash dividend of ¥60 per share.

6

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

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

All of the above-mentioned companies are our consolidated subsidiaries.
* Merger of 2 diversified products sales companies
BRIDGESTONE DIVERSIFIED PRODUCTS EAST CO., LTD. has merged with BRIDGESTONE
DIVERSIFIED PRODUCTS WEST CO., LTD. and was renamed BRIDGESTONE DIVERSIFIEDPRODUCTS JAPAN CO., LTD. on January 1, 2015.

7

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

3. Management Policies(1) Basic Management Policies
The Companies will pursue the ultimate goals of becoming “a truly global company” and achieving “Dan-Totsu
in all aspects of our business” based on a corporate philosophy that consists of a “mission”, “serving society withsuperior quality” and four “foundations” for fulfilling the mission — “Seijitsu-Kyocho [Integrity and Teamwork]”,“Shinshu-Dokuso [Creative Pioneering]”, “Genbutsu-Genba [Decision-Making Based on Verified, On-SiteObservation]”, and “Jukuryo-Danko [Decisive Action after Thorough Planning]”. Further, as a responsible global
company, the Companies will respect the social culture and values of the countries in which it conducts businessactivities, comply with laws and statutory regulations, protect the global environment, and contribute to society.
(2) Management Strategies and Tasks
The Companies’ operating environment is undergoing substantial change in a wide range of areas, including
politics, the economy, the environment, and technical innovation. Social structures and consumer attitudes are alsochanging significantly.
In this setting, the Companies remain firmly committed to the basic stance of “Lean & Strategic” and “Group
Global optimization.” In other words, the Companies maintain an optimum balance between short-term
management measure and mid- and long-term management measures, with a focus on “Lean” in the short-termand “Strategic” in the mid- and long-term. At the same time, the Companies continue to implement management
reforms, giving the highest priority to optimization on a group and global basis. In this way, the Companies strive toachieve the goals outlined above.
In accordance with this fundamental approach, the Companies make full use of “the Strategic Business Unit
(SBU) based organization” and “the Mid-Term Management Plan (MTP)” as tools to improve the quality and the
speed of management reforms.
The 2014MTP, which was announced in October 2014, includes three priority issues: “cultivating global
corporate culture,” “developing human resources capable of global management,” and “upgrading the global
management structure.”
In regard to the first item, “cultivating global corporate culture,” the Companies ensure overall consistency on agroup and global basis, promote the brand strategies as a part of a fully integrated marketing strategy, andaccelerate technology and business model innovation. In an operating environment undergoing significant change,
the Companies are trying to anticipate market trends, increase sales of highly competitive products and services,and construct and enhance business models that will extend beyond the mere sales of products. The Companies
are also pursuing continuous improvement in all areas of management. In these ways, the Companies createcustomer value and ensure further development of their competitive advantage and differentiation.
In regard to the second item, “developing human resources capable of global management,” the Companies
promote global and regional talent rotations and also conduct training and development programs. Anotherinitiative in this area is the holding of the Global Executive Operational Committee (Global EXCO), the highest
body of global business execution. Meetings of this committee serve as a forum for transparent discussion among
a diverse talent. The companies advance the participation of local / regional staff in global management roles
through the designation of English as an official company language.
In regard to the third item, “upgrading the global management structure,” The Companies promote three
activities: “enhancement of governance systems,” “restructuring of the tire business SBUs,” and “expansion of thediversified product business.”
In the “enhancement of governance systems”, the Companies are taking steps to strengthen the check andbalance functions of the Board of Directors while expanding the system of committees, such as the Board of
Directors Advisory Committees, that support management. Through these measures, the Companies aim to
improve the quality and speed in terms of management decision making which assist to develop a global business.

8

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

In the “restructuring of the tire business SBUs,” the Companies established an organization for managing
operations in China and Asia Pacific in July 2014. Going forward, the Companies will continue to pursue theoptimization of their global management system. One possibility that will be considered is reorganizing the SBU
system such as by expanding the jurisdiction of the Europe SBU to include the Middle East, Africa, Turkey, andRussia.
In the “expansion of the diversified product business,” the Companies will upgrade inter-business synergy to
guide the diversified product business to its next growth spurt.
In addition, the Companies will step up efforts to build systems to support the fulfillment of its responsibilities as acorporate group toward all of its stakeholders. The Companies will conduct regular yearly reviews of its policy forthe development of internal control systems that ensure appropriate operations. Moreover, the Companies will
undertake reviews of that policy as needed and steadily develop systems in accordance with the policy. Centeredon the Integrated CSR Enhancement Committee, the Companies’ corporate social responsibility activities will
establish systems and heighten the effectiveness of activities in all areas, including rigorous risk management forenvironmental protection, product safety, compliance and disaster prevention and safety initiatives; employee
education; and corporate citizenship activities.
In February 2014, the Company entered into a plea agreement with the U.S. Department of Justice in relation tocartel activities with respect to the sale of anti-vibration rubber products for vehicles. The Companies realize theseverity of this incident, and are committed to further enhancing compliance systems in order to recoverstakeholder trust. As one fact of these efforts, the Compliance Committee, which consists of outside directors, wasestablished in March 2014. Under the supervision and in accordance with the advice of this committee, theCompanies will implement new measures focused on the more effectively preventing cartel and bribery activities.

9

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
Previous Year(As of December 31, 2013)

Current Year(As of December 31, 2014)

AssetsCurrent Assets
Cash and deposits

286,558

390,444

Notes and accounts receivable

528,465

541,866

Short-term investments

152,161

149,239

Merchandise and finished products

354,370

388,393

Work in process

37,35338,308Raw materials and supplies

165,379

170,834

Deferred tax assets

101,370

91,249Other

103,594

118,742

Allowance for doubtful accounts(11,871)(11,430)

Total Current Assets(Note2)

1,717,383(Note2)

1,877,649

Fixed Assets
Tangible fixed assets
Buildings and structures, net

414,442

527,171

Machinery, equipment and vehicles, net

454,423543,765Land

152,367

172,522

Construction in progress

237,504

208,780

Other, net

76,321

91,935

Total tangible fixed assets(Note1)Intangible fixed assets

1,335,060(Note1)

46,827

1,544,174
71,625Investments and other assets
Investments in securities(Note3)320,954(Note3)

288,455

Long-term loans receivable

9,125

5,664

Deferred tax assets

75,52490,475－

14,031

Other

77,74975,348

Allowance for doubtful accounts(5,578)(6,515)

Total investments and other assets

477,774

467,459

Net defined benefit asset

Total Fixed Assets(Note2)

Total Assets

1,859,661
3,577,045

10(Note2)

2,083,258
3,960,908

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Yen in millions)
Previous Year(As of December 31, 2013)

Current Year(As of December 31, 2014)

Liabilities
Current Liabilities
Notes and accounts payable

188,693

198,166

Short-term borrowings

216,660

221,478

Current portion of bonds

63,794－

Lease obligations

1,093

7,431

Income taxes payable

54,571

46,489Deferred tax liabilities

1,402

1,820

Provision for sales returns

3,036

3,017

Provision for loss related to US antitrust laws

44,790－

Provision for recall

21,132

7,894

Provision for plant restructuring in Japan

8,582

860

Accounts payable-other170,235

191,240

Accrued expenses

230,887

238,329

Other

54,40559,4691,059,285

976,198

Bonds

50,000120,000

Long-term borrowings

221,384

237,948

Lease obligations

11,342

6,136

Deferred tax liabilities

58,04768,067Warranty reserve

24,01028,038Provision for environmental remediation
Accrued pension and liability for retirement
benefits
Net deined benefit liability

3,309

2,465

236,747－－

314,567

Other

49,95460,827

Total Long-term Liabilities

654,795

838,051

1,714,081

1,814,250

Common stock

126,354

126,354

Capital surplus

122,865

123,008

1,597,140

1,842,914(56,644)(56,367)

1,789,714

2,035,908

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

200,703

168,172(1,092)(2,189)Foreign currency translation adjustments(86,177)

39,108Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeStock Acquisition Rights(97,863)(165,314)

15,57039,776

1,621

1,945

Minority Interests

56,05769,026

Total Net Assets

1,862,963

2,146,657

Total Liabilities and Net Assets

3,577,045

3,960,908

Total Current Liabilities
Long-term Liabilities

Total Liabilities
Net Assets
Shareholders' Equity

Retained earnings
Treasury stock-at cost
Total Shareholders’ equity

11

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(Yen in millions)
Previous Year
(Year ended December 31, 2013)

Current Year
(Year ended December 31, 2014)

Net Sales

3,568,091

3,673,964

Cost of Sales

2,267,663

2,289,625

Gross Profit

1,300,428

1,384,339

Goods freightage expenses

148,912

151,890

Advertising and promotion expenses

116,608

124,339

Salaries, allowances and bonuses

226,136

238,506

Retirement benefit expenses

19,25918,750Depreciation

28,232

29,378Selling, General and Administrative Expenses

Research and development expenses(Note1)

Other
Total selling, general andadministrative expenses
Operating Income

89,097(Note1)

94,147

234,048249,287

862,296906,300

438,131

478,038

Interest income

5,334

6,326

Dividend income
Share of profit of entities accounted for using
equity method
Other

7,175

7,982

3,819

4,099

16,18915,810Total non-operating income

32,51934,218Interest expense

14,825

14,662Foreign currency exchange loss

4,111

6,130

Other

16,921

28,251

Total non-operating expenses

35,85849,044

Ordinary Income

434,793463,212

Non-operating Income

Non-operating Expenses

Extraordinary Income
Gain on sales of tangible assets(Note2)Gain on sales of investment securities
Total extraordinary income

5,030(Note2)

8,614

－

5,925

5,030

14,54011,300－Extraordinary Loss
Impairment loss

(Note3)

Loss on disposals of tangible assets

4,062

－

Dismantlement expenses

3,370

－

Loss related to US antitrust laws

(Note4)

44,790－Loss related to recall(Note5)22,504－

Plant restructuring costs in Japan(Note6)

8,652－

Plant restructuring costs in Europe(Note7)

5,044－

99,725－340,098

477,753

123,288

124,384

3,022

43,319Total income taxes

126,311

167,704

Income before minority interests

213,786

310,048

Minority Interests

11,7339,458

Net Income

202,053

300,589

Total extraordinary losses
Income before Income Taxes andMinority Interests
Income taxes - current
Income taxes - deferred

12Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

Consolidated Statement of Comprehensive Income(Yen in millions)
Previous Year
(Year ended December 31, 2013)
Income before Minority Interests

Current Year
(Year ended December 31, 2014)

213,786

310,048

67,259(32,537)

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

(392)

(598)

163,444

131,196

Remeasurements of defined benefit plans

35,864(64,354)

Share of other comprehensive income inaffiliates

326

(58)

266,501

33,649480,288343,697

Shareholders of Bridgestone Corporation

465,086

327,592

Minority Interests

15,202

16,104

Total other comprehensive income
Comprehensive Income
Comprehensive income attribute to:13

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(3) Consolidated Statement of Changes in Net Assets
Previous Year (Year ended December 31, 2013)(Yen in millions)Shareholders’ equity

Beginning balanceCommon stock

Capital surplus

126,354

122,630

Retainedearnings

Treasurystock-at cost

1,428,747

Total(57,247)

1,620,484

(14)
617

(33,661)
202,053
(14)
852

602
(56,644)

169,230
1,789,714(Changes in the year)(33,661)
202,053

Cash dividends
Net income for the year
Purchase of treasury stock

234

Disposal of treasury stock
Net changes in the year
Total changes in the year
Ending balance－
126,354234
122,865

168,392
1,597,140

Accumulated other comprehensive income

Beginning balance

Net unrealized
gain (loss)
on availablefor-salesecurities

Deferredgain (loss)
on derivative
instruments

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

133,439(948)(246,190)

67,264
67,264
200,703

(144)
(144)
(1,092)160,013160,013(86,177)StockacquisitionrightsMinority
interests(133,763)

1,099

43,22635,89935,899(97,863)

522
522
1,621

12,83012,83056,057(Changes in the year)
Cash dividends
Net income for the year
Purchase of treasury stock
Disposal of treasury stock
Net changes in the year
Total changes in the year
Ending balance

14

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

Current Year (Year ended December 31, 2014)(Yen in millions)Shareholders’ equity

Beginning balanceCommon stock

Capital surplus

126,354

122,865

Retainedearnings

Treasurystock-at cost

1,597,140

Total(56,644)

1,789,714

(12)
289

(54,815)300,589
(12)
432

276
(56,367)

246,1932,035,908(Changes in the year)(54,815)300,589

Cash dividends
Net income for the year
Purchase of treasury stock

142

Disposal of treasury stock
Net changes in the year
Total changes in the year
Ending balance－
126,354

142
123,008

245,774
1,842,914

Accumulated other comprehensive income

Beginning balance

Net unrealized
gain (loss)
on availablefor-salesecurities

Deferredgain (loss)
on derivative
instruments

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

200,703(1,092)(86,177)(32,531)(32,531)
168,172(1,096)(1,096)(2,189)125,285
125,285
39,108Stockacquisition
right

Minority
interests(97,863)

1,621

56,057(67,451)(67,451)(165,314)

324
324
1,945

12,96912,96969,026(Changes in the year)
Cash dividends
Net income for the year
Purchase of treasury stock
Disposal of treasury stock
Net changes in the year
Total changes in the year
Ending balance

15

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(4) Consolidated Statement of Cash Flows(Yen in millions)
Previous Year
(Year ended December 31, 2013)

Current Year
(Year ended December 31, 2014)

Cash Flows from Operating Activities
Income before income taxes and minority
interests
Depreciation and amortization
Amorization of goodwill
Increase(decrease) in accrued pension andliability for retirement benefits
Increase(decrease) in net defined benefit
liability
Interest and dividend income
Interest expense

340,098

477,753

176,179

188,332

980

1,245

(12,445)－－(26,290)(12,510)
14,825(14,308)
14,662(2,245)

7,516

Foreign currency exchange gains(losses)
Share of profit of entities accounted forusing equity method
Gain on sales of tangible assets(2,064)(1,489)(5,030)(8,614)Gain on sales of investment securities
Impairment loss－
11,300(5,925)－

Loss on disposals of tangible assets

4,062

－

Dismantlement expenses

3,370

－

Loss related to US antitrust laws

44,790－Loss related to recall

22,504－

Plant restructuring costs in Japan

8,652

－

Plant restructuring costs in Europe
Decrease(increase) in notes and accounts
receivable

5,044

－

(48,419)(4,263)

Decrease(increase) in inventories

43,916

2,292

Increase(decrease) in notes and accounts
payable14,050

7,734

Other

(15,274)(18,472)

Subtotal

591,784

620,172

Interest and dividends received

12,47914,322

Interest paid

(14,825)(14,791)

Payment related to US antitrust laws－

(43,651)

Payment related to recall－(11,668)

Payment related to plant restructuring costs
in Japan－(7,700)

Income taxes paid

(117,667)(128,061)

Net Cash Provided by Operating Activities

471,771428,621

Payments for purchase of tangible assets(267,033)(288,382)

Proceeds from sales of tangible assets

10,086

10,910

Payments for purchase of intangible assets(7,533)(2,587)

3,659

6,926

1,246

3,645

(5,656)(36,208)(265,229)(305,696)

Cash Flows from Investing Activities

Proceeds from sales of investments insecurities
Proceeds from collection of long-term loans
receivable
Other
Net Cash Used in Investing Activities

16

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Yen in millions)
Previous Year
(Year ended December 31, 2013)

Current Year
(Year ended December 31, 2014)

Cash Flows from Financing Activities
Net increase(decrease) in short-termborrowings(81,076)

6,894

Proceeds from long-term borrowings

12,83399,367

Repayments of long-term borrowings(67,443)(121,670)

Proceeds from issuance of bonds

50,00070,000

Payments for redemption of bonds(61,976)(63,807)(906)(1,152)

Cash dividends paid

(33,654)(54,798)

Cash dividends paid to minority(4,268)(4,121)

Other

2,770

1,353

(183,722)(67,935)

32,361

10,59455,17965,585

269,416

324,596

Repayments of obligations under financeleasesNet 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)

17

324,596(Note1)

390,181Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(5) Notes regarding going concern assumption
Not applicable(Basic important matters for preparation of consolidated financial statements)
1. Scope of consolidation
1) Number of consolidated subsidiaries: 310 companies
Names of principal companies:
Refer to “2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart”
Changes in scope of consolidation:
Additions: 9 companies (Mainly, increased by establishments)
Deletions: 10 companies (Mainly, decreased by mergers)
2) There are no non-consolidated subsidiaries
2. Scope of application of equity-method accounting
1) Number of equity-method affiliates: 143 companies
Main equity-method affiliate
BRISA BRIDGESTONE SABANCI LASTIK SANAYI VE TICARET A.S.
Changes in the scope of equity-method accounting
Additions: 1 company (Increased by establishment)
Deletions: 4 companies (Mainly, decreased by disposal)
2) There are no non-consolidated subsidiaries or affiliates to which equity-method accounting is not applied.
3. Summary of significant accounting policies
1) Valuation policies 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 policies and methods for derivatives
In principle, fair value.
3) Valuation policies and methods for inventories
Inventories are substantially stated at lower of cost determined by the moving-average method or net
selling value. Meanwhile, inventories held by subsidiaries in the Americas are substantially stated at thelower of cost, which is determined principally by the last-in, first-out method.
4) Depreciation method for fixed assets
For tangible assets, the declining-balance method is used at BRIDGESTONE CORPORATION (the“Company”) and its domestic subsidiaries, and the straight-line method is used at overseas
subsidiaries.For intangible assets, the straight-line method is used.

18

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20145) Accounting policies 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.
b) Provision for sales returns
Principally, 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
In order to reserve for outlays related to check and replacement of object tires, an estimated amountof future obligations is recorded.
d) Provision for plant restructuring in Japan
In order to reserve for plant restructuring costs in Japan, an estimated amount of future obligations isrecorded.
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 of the Company and its subsidiaries (collectively,
the “Companies”).
f) Provision for environmental remediation
In order to reserve for outlays for legally required removal and disposal of PCB (Polychlorinatedbiphenyl), etc., an estimated amount of future obligations is recorded.
6) Accounting policies for retirement benefitsa) Allocation of expected benefit payments
When calculating retirement benefit liabilities, domestic Group companies use the straight-line
method to allocate expected benefit payments to the period until this fiscal year-end, while certain
overseas companies use the benefit formula standard. In addition, certain overseas companies
estimate the total amount of non-pension retirement benefit expenses to be incurred, and distribute thisamount throughout the period of employee service.

b) Treatment of actuarial gain/loss and prior service cost
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 of the employees in the year in which the priorservice costs occur (10 years for domestic companies, 3 to 12 years for overseas companies).
Actuarial gain/loss at the Company and its domestic companies is treated as an expense using thestraight-line method over a fixed number of years (10 years) based on the average remaining years ofservice of the employees in the year in which the gain/loss occurs, recorded from the following year.
For certain of its overseas companies, unrecognized actuarial 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 of the employees.

19Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 20147) Accounting policies 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.
8) 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 instrument and items covered
Instruments
Forward 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.
9) 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.
10) Definition of cash and cash equivalents for Consolidated Statement 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.
11) Other significant items related to the preparation of consolidated financial statements
Accounting treatment of consumption tax
Consumption tax and local consumption taxes are excluded.

20

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Changes in accounting policy, etc.)(Changes in accounting principles accompanying revisions in accounting standards)
The “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 of May 17, 2012, hereinafterreferred to as the “Retirement Benefits accounting Standard”) and the “Guidance on the Accounting Standard
for Retirement Benefits” (ASBJ Guidance No. 25 of May 17, 2012, hereinafter “Guidance on the Retirement
Benefits”) were applied at the end of the consolidated fiscal year under review (excluding to provisions statedin Section 35 of the Retirement Benefits Accounting Standard and Section 67 of the Guidance on Retirement
Benefits). The Companies have adopted the method of deducting the amount of pension assets from theretirement benefit obligations and reporting the amount as net defined benefit liabilities and also reporting theunrecognized actuarial gain/loss and unrecognized prior service costs as part of net defined benefit liabilities.
In case the amount of pension assets exceeded the amount of retirement benefit liabilities, the Companies
reported it as a part of net defined benefit assets.
In accordance with the transitional treatment prescribed in Section 37 of the Retirement Benefits AccountingStandard, the Companies applied the Accounting Standard for Retirement Benefits at the end of theconsolidated fiscal year under review, and the effect of the accounting change was reflected asremeasurements of defined benefit plans in accumulated other comprehensive income.
As a result, the Companies reported net defined benefit liabilities of ¥314,567 million and net defined benefit
asset of ¥14,031 million at the end of the fiscal year. In addition, accumulated other comprehensive income
decreased by ¥2,796 million.
The effect of this change on net assets per share is ¥3.57.
Furthermore, from the end of the fiscal year under review, “post retirement liability adjustments for foreigncompanies (¥(97,863) million in the fiscal year ended December 31, 2013, ¥(162,518) million in the fiscal year
ended December 31, 2014)” on the consolidated balance sheet and the consolidated statement of changes in
net assets, previously listed under “accumulated other comprehensive income” as a component “net assets,”
has been included in “remeasurements of defined benefit plans.” Likewise, “post retirement liability adjustment
for foreign companies (¥35,864 million in the fiscal year ended December 31, 2013, ¥(64,354) million in thefiscal year ended December 31, 2014)” on the consolidated statement of comprehensive income has been
included in “remeasurements of defined benefit plans.” Figures for the fiscal year ended December 31, 2013,
have been restated to reflect this change.

21

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Changes in presentation)
1. Consolidated Statement of Cash Flows
1) "Amortization of goodwill" and “Increase(decrease) in allowance for doubtful accounts”
In the Cash Flows from Operating Activities section, “Amortization of goodwill” was included in “Other” in theprevious fiscal year. Due to an increase in financial materiality, “Amortization of goodwill” is now presented
separately. “Increase(decrease) in allowance for doubtful accounts” was presented separately in the previous
fiscal year. Due to a decline in financial materiality, “Increase(decrease) in allowance for doubtful accounts” is
now presented in “Other.” To reflect these changes in method of presentation, the consolidated financial
statements for the previous fiscal year have been reclassified.
As a result, in the Cash Flows from Operating Activities section, the ¥2,556 million that had been previously
presented as “Increase(decrease) in allowance for doubtful accounts” and the ¥(16,850) million that had beenpreviously presented as “Other” in the Consolidated Statement of Cash Flows for the previous fiscal year
have now been restated as “Amorization of goodwill” of ¥980 million and “Other” of ¥(15,274) million.
2) “Payments of loans receivable”
In the Cash Flows from Investing Activities section, “Payments of loans receivable” was presented
separately in the previous fiscal year. Due to a decline in financial materiality, “Payments of loans receivable”
is now presented in “Other.” To reflect this change in method of presentation, the consolidated financial
statements for the previous fiscal year have been reclassified.
As a result, in the Cash Flows from Investing Activities section, the ¥(3,067) million that had beenpreviously presented as “Payments of loans receivable” in the Consolidated Statement of Cash Flows for theprevious fiscal year is now included in “Other.”3) “Repayments of obligations under finance leases” and “Proceeds from minority interests for additional
shares”
In the Cash Flows from Financing Activities section, “Repayments of obligations under finance leases” wasincluded in “Other” in the previous fiscal year. Due to an increase in financial materiality, “Repayments ofobligations under finance leases” is now presented separately. “Proceeds from minority interests for additional
shares” was presented separately in the previous fiscal year. Due to a decline in financial materiality, “Proceedfrom minority interests for additional shares” is now presented in “Other.” To reflect these changes in methodof presentation, the consolidated financial statements for the previous fiscal year have been reclassified.
As a result, in the Cash Flows from Financing Activities section, the ¥1,932 million that had been previously
presented as “Proceeds from minority interrsts for additional shares” and the ¥(68) million that had beenpreviously presented as “Other” in the Consolidated Statement of Cash Flows for the previous fiscal year havenow been restated as “Repayments of obligations under finance leases” of ¥(906) million and “Other” of¥2,770 million.

22

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Notes to the consolidated financial statements)(Consolidated Balance Sheet)
Note 1 Accumulated depreciation of tangible fixed asset
Previous Year(As of December 31, 2013)¥2,275,571 million

Current Year(As of December 31, 2014)¥2,480,928 million

Note 2 Assets pledged as collateralPrevious Year(As of December 31, 2013)¥8,109 million

Current Year(As of December 31, 2014)¥8,148 million

Obligations corresponding to the preceding
Previous Year(As of December 31, 2013)
Short-term borrowings
Long-term borrowings¥1,519 million¥6,079Note 3 Assets or liabilities related to non-consolidated subsidiaries and affiliates
Previous Year(As of December 31, 2013)
Investments in securities¥17,190 million

Current Year(As of December 31, 2014)¥1,376 million¥6,340Current Year(As of December 31, 2014)¥18,795 million

Note 4 Guarantees
Previous Year(As of December 31, 2013)
Guarantees on employees’ bank borrowings¥3 million

Current Year(As of December 31, 2014)¥2 million

Note 5 Balance of trade notes discounted
Previous Year(As of December 31, 2013)¥1,918 million

23

Current Year(As of December 31, 2014)¥1,862 million

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Consolidated Statement of Income)Note 1

Research and development expenses
Previous Year
(Year ended December 31, 2013)

Current Year
(Year ended December 31, 2014)¥89,097 million¥94,147 million

General and administrative expenses

Note 2Gain on sales of tangible assets

Previous Year (Year ended December 31, 2013)
Gain on sales of tangible assets mainly consists of gain on sales of land.
Current Year (Year ended December 31, 2014)
Gain on sales of tangible assets mainly consists of gain on sales of land.

Note 3

Impairment loss

Previous Year (Year ended December 31, 2013)
The Companies group their operating assets in accordance with the classifications used for internalmanagement. Disposal assets (assets that the Companies plan to dispose of through scrapping or sale) and idle
assets are grouped on an individual basis.
In the period under review, for operating assets for which profitability has declined, disposal assets throughplanned scrapping or sale, and idle assets that are not expected to be used in the future, the carrying amounts
were reduced to the recoverable amounts, and the amounts of these reductions were recorded under
extraordinary loss as impairment loss of ¥11,300 million. That total included ¥3,291 million for machinery,equipment and vehicles, ¥1,724 million for buildings and structures, ¥415 million for land and ¥5,869 million forothers.
USE

Classification

Location

Amount(Yen in millions)Operating

Machinery, equipment and vehicles, buildings

China, Japan, etc.

5,145

assetsand structures, etc.

Disposal assets

Machinery, equipment and vehicles, etc.

Poland, Japan

6,049

Idle assets

Land

Japan

104

The recoverable amount of operating assets is measured by value in use, which is calculated by discounting
future cash flows at a discount rate of 5.1 to 13.5%. The recoverable amounts of disposal assets and idle assets
are measured at the net selling price. Assets to be scrapped are evaluated at memorandum value, and assets tobe sold and idle assets are evaluated at the estimated selling price.

Note 4

Loss related to US antitrust laws

Previous Year (Year ended December 31, 2013)
The Company has recorded the related loss as a result of entering into the plea agreement with U.S.
Department of Justice regarding certain automobile parts.

24

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

Note 5

Loss related to recall

Previous Year (Year ended December 31, 2013)
Due to the Company implemented a recall for certain medium-size and large-size truck and bus tires
manufactured by the Tochigi Plant and by BRIDGESTONE (SHENYANG) TIRE CO., LTD., a consolidated
subsidiary, the expenses related to the check, replacement, etc. of the recalled tires were recorded.

Note 6

Plant restructuring costs in Japan

Previous Year (Year ended December 31, 2013)
The Company has recorded the expenses besed on the decision of the Kuroiso Plant closing as a part ofproduction realignments in Japan.

Note 7

Plant restructuring costs in Europe

Previous Year (Year ended December 31, 2013)
BRIDGESTONE EUROPE NV/SA (BSEU), the Company's regional head quarter in Europe, has recorded
expenses related to a plan to increase the competitiveness of the Bari Plant of BRIDGESTONE ITALIA
S.P.A., BSEU's Italian subsidiary. The steps were taken in accordance with the approval of the government,
unions, and other parties. On March 4, 2013, BSEU had decided to close the Bari Plant. However, under the
new plan, operations could possibly be continued if productivity and costs reach the target levels that havebeen agreed upon.

25

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Consolidated Statement of Changes in Net Assets)
Previous Year（Year ended 31 December 2013)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2012

As of
December 31,
2013

Number of shares issued
Common stock(Thousands of shares)

813,102－－

813,102

Treasury stock
Common stock(Thousands of shares)(see note 1 & 2)

30,4404

329

30,115

Notes 1: The increase of treasury stock consists of the purchase of 4 thousand shares according to the requests fromthe shareholders who have odd-lot shares.
2: The decrease of treasury stock consists of 329 thousand shares used for the exercise of stock options and other.

2. Stock acquisition rights

DetailsStockacquisitionrights as
stock options

Filingcompany

Total

Type of shares
to be used asstockacquisitionrightsNumber of shares to be used for Stock acquisition rights

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

As ofDecember31, 2012

Increase

Decrease

As ofDecember 31,
2013

－

－

－

－

－

1,621

－

－

－

－

－

1,621

3. Dividends(1) Dividend payments
Resolution

Type

Annual Shareholders’Meeting, March 26,
2013

Common StockBoard of Directors,
August 9, 2013

Common Stock

Dividend per
share

Record date

Effective date

12,522¥16

December 31,
2012

March 27,2013

21,138¥27

June 30,2013

September 2,
2013

Total dividends(yen in millions)(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 25,
2014

CommonStock23,489Retainedearnings

26¥30

December 31,
2013

March 26,
2014

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

Current Year（Year ended 31 December 2014)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2013

As of
December 31,
2014

Number of shares issued
Common stock(Thousands of shares)

813,102－－

813,102

Treasury stock
Common stock(Thousands of shares)(see notes 1 & 2 )30,115

3

153

29,965

Notes 1: The increase of treasury stock consists of the purchase of 3 thousand shares according to the requests fromthe shareholders who have odd-lot shares and other.
2: The decrease of treasury stock consists of 153 thousand shares used for the exercise of stock options and other.

2. Stock acquisition rights

DetailsStockacquisitionrights as
stock options

Filingcompany

Total

Type of shares
to be used asstockacquisitionrightsNumber of shares to be used for Stock acquisition rights

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

As ofDecember31, 2013

Increase

Decrease

As ofDecember31, 2014

－

－

－

－

－

1,945

－

－

－

－

－

1,945

Dividend per
share

Record date

Effective date

3. Dividends(1) Dividend payments
Total dividends(yen in millions)

Resolution

Type

Annual Shareholders’Meeting, March 25,
2014

Common Stock

23,489¥30

December 31,
2013

March 26,
2014

Board of Directors,
August 8, 2014

Common Stock

31,325¥40

June 30,2014

September 1,
2014(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 24,
2015

CommonStock46,988Retainedearnings

27¥60

December 31,
2014

March 25,2015

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Consolidated Statement of Cash Flows)
Note 1

Relationship between cash and cash equivalents at fiscal year end and amount shown inConsolidated Balance Sheet(Yen in millions)

Cash and deposits
Short-term investments

Previous Year
(Year ended December 31, 2013)

Current Year
(Year ended December 31, 2014)(As of December 31, 2013)
286,558
152,161(As of December 31, 2014)
390,444
149,239438,719539,683(114,123)(149,502)

324,596

390,181

Total
Time deposits, bonds, etc. withterms of more than three months
Cash and cash equivalents

28

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(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 inorder to decide 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
and tubes, 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 andDiversified 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 2013(January 1, 2013 - December 31, 2013)
Diversified
Products

Tires(Yen in millions)

Adjustments(notes)

Total

Consolidated

Net sales:
External customers－

3,033,660

534,430

3,568,091

Inter-segment

3,242

11,787

15,030(15,030)－

Total

3,036,902

546,218

3,583,121(15,030)

3,568,091

399,496

38,560438,05774

438,1313,175,922

402,226

3,578,149(1,104)

3,577,045

158,722

17,456

176,179－

176,179

Amortization of goodwill

922

57

980

－

980

Investment for
equity-method affiliates

16,977217

17,194(4)

17,190

Increase in tangible andintangible fixed assets

255,907

19,067274,974－

274,974

Segment income(Operating income)Segment assets

3,568,091

Other
Depreciation andamortization

Notes: 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.

29

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

Consolidated Results for Fiscal 2014(January 1, 2014 - December 31, 2014)
Diversified
Products

Tires(Yen in millions)
Adjustments(notes)

Total

Consolidated

Net sales:
External customers－

3,088,626

585,337

3,673,964

Inter-segment

4,748

16,52821,277(21,277)－

Total

3,093,375

601,866

3,695,241(21,277)

3,673,964

435,837

42,187

478,024

14

478,038

3,517,403

445,601

3,963,005(2,096)

3,960,908

170,871

17,460188,332－

188,332

Amortization of goodwill

648

597

1,245

－

1,245

Investment for
equity-method affiliates

18,598198

18,797(2)

18,795

Increase in tangible andintangible fixed assets

268,375

44,724313,100－

313,100

Segment income(Operating income)Segment assets

3,673,964

Other
Depreciation andamortization

Notes: 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 2014

(Per share information)(Yen)
Previous Year
(Year ended December 31, 2013)

Current Year
(Year ended December 31, 2014)

Total equity per share

2,305.64

2,650.47

Net income per share

258.10383.84

Diluted net income per share

257.81

383.39

Items

Note:

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

Previous Year
(Year ended December 31, 2013)
Net income per share

Current Year
(Year ended December 31, 2014)(Yen in millions)(Yen in millions)

202,053

300,589－－

202,053

300,589

Average number of shares heldby common shareholders
during term
Diluted net income per share(Thousands of shares)
782,860(Thousands of shares)
783,111(Thousands of shares)(Thousands of shares)

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

－
878
(878)

－
927
(927)

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

Summary of residual shares with ―――――――――――――――――
no dilution effect and therefore
not included in calculation ofdiluted net income per share31―――――――――――――――――

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

(Significant subsequent events)

Not applicable32

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

5. Other(1) Senior Management Changes

Bridgestone Corporation announced that its board of directors has approved the following proposals forsenior management changes today.

1) New Members of the Board of Directors

Current occupation in parentheses(To be appointed after approval at the Company’s Annual Shareholders' Meeting on March 24, 2015)
Member of the Board

Keiko Unotoro[ Professor, Faculty of Business
Administration of Toyo Gakuen
University ]* Ms. Keiko Unotoro is candidate for outside director as set forth in Article 2-15 of the Companies Act.

2) Retiring Members of the Board of Directors

Plan after retirement in parentheses(Effective March 24, 2015)
Member of the Board

Kimiko Murofushi[ External Advisor ]Senior Vice President

Yoshiyuki Morimoto[ Senior Vice President

Member of the Board

Seconded to BRIDGESTONE

Assistant to Senior Vice President,

AMERICAS, INC.

Chief Technology Officer

Executive Chairman of

Responsible for Technology

BRIDGESTONE AMERICAS, INC.]* Ms. Kimiko Murofushi is an outside director as set forth in Article 2-15 of the Companies Act.

3) Reappointed Members of the Board of Directors

Current occupation inparentheses(To be appointed after approval at the Company’s Annual Shareholders' Meeting on March 24, 2015)
CEO and Representative Board

Masaaki Tsuya[ CEO and Representative Board

MemberMemberConcurrently Chairman of the Board;

Concurrently Chairman of the Board;

Concurrently Chairman, BIOC

Concurrently Chairman, BIOC ]COO and Representative Board

Kazuhisa Nishigai[ COO and Representative Board

MemberMemberConcurrently responsible for Japan

Concurrently responsible for Japan

Tire Business;

Tire Business;

Concurrently Vice Chairman, BIOC

Concurrently Vice Chairman, BIOC ]33

Bridgestone Corporation (5108) Consolidated Financial Statements for fiscal 2014

Senior Vice President

Narumi Zaitsu[ Senior Vice President

Member of the Board

Member of the Board

Chief Technology Officer

Chief Technology Officer

Responsible for Technology

Responsible for Technology;
Concurrently responsible for
Production Technology ]Member of the Board

Sakie Tachibana[ Member of the Board ]Fukushima
Member of the Board

Scott Trevor Davis[ Member of the Board ]Member of the Board

Yuri Okina[ Member of the Board ]* Ms. Sakie Tachibana Fukushima, Mr. Scott Trevor Davis and Ms. Yuri Okina are candidates for outside
directors as set forth in Article 2-15 of the Companies Act.

4) Reappointed Corporate Auditors

Current occupation in parentheses(To be appointed after approval at the Company’s Annual Shareholders' Meeting on March 24, 2015)
Corporate Auditor (Non-full-time)

Kenichi Masuda[ Corporate Auditor (Non-full-time) ]* Mr. Kenichi Masuda is a candidate for outside corporate auditor as set forth in Article 2-16 of theCompanies Act.

5) Retiring Corporate Officers

Plan after retirement in parentheses(Effective March 24, 2015)
Vice President and Officer

Hideo Hara

[ Fellow

Seconded to BRIDGESTONE

Assistant to Director, Corporate

AMERICAS, INC.

Planning Division ]Vice President and Officer

Yoichi Sato

[ Fellow

Global Production Administration

Assistant to Vice President andand Logistics, Mold Technology

Senior Officer,

and Manufacturing

Responsible for Products
Development ]Vice President and Officer

Takashi Yasukochi

Safety and Disaster Prevention

34[ Advisor ]