Consolidated Financial Results for the Fiscal Year Ended December 31, 2019
<under Japanese GAAP>
February 17, 2020
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, the original
Japanese-language supersedes this English translation.
Company name:
Code number:
Representative:

Bridgestone Corporation
Stock exchange listings: Tokyo, Nagoya, Fukuoka
5108
URL: https://www.bridgestone.com/
Masaaki Tsuya,
Chairman of the Board
CEO and Representative Executive Officer
Contact:
Tetsuo Kenmochi,
Treasurer, General Manager
Telephone:+81-3-6836-3100
Scheduled date of annual shareholders’ meeting:March 24, 2020
Scheduled date of securities report submission:
March 24, 2020
Scheduled date of dividend payment commencement:
March 25, 2020
Supplementary information for the financial statements to be prepared:
Yes
Meeting to explain the financial statements to be held:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for Fiscal 2019 (January 1, 2019 - December 31, 2019)(1) Consolidated Operating Results(Percentage figures represent changes from the previous year)
Profit attributable toOperating profit
Ordinary profit
owners of parent

Net sales
Yen in millions%

Yen in millions%

Fiscal 2019
3,525,600(3.4)
326,098 (19.0)
Fiscal 2018
3,650,111
0.2
402,732(3.9)(Note) Comprehensive income: Fiscal 2019 ¥237,629 million [46.5%]
Basic earnings
per share

Diluted earnings
per share

Yen

Yen in millions

Yen in millions%

316,823 (16.9)
292,598
381,132(4.9)
291,642
Fiscal 2018 ¥162,160 million [(50.2)%]

0.3
1.2

Ordinary profit/ Total assets

Return on equity

Yen

%

%

Fiscal 2019404.95404.28
12.5
Fiscal 2018387.95387.2812.4(Reference) Share of profit (loss) of entities accounted for using equity method:
Fiscal 2019 ¥(3,224) million
Fiscal 2018 ¥(1,270) million

Operating profit
margin
%

%

8.1
9.8

9.2
11.0

(2) Consolidated Financial Position
Total assets

Net assets

Yen in millions

Equity ratio

Net assets per share
%

Yen

58.0
61.9

3,250.37
3,163.71

Yen in millions

Fiscal 2019
3,946,505
Fiscal 2018
3,840,269(Reference) Equity: Fiscal 2019 ¥2,288,438 million

2,344,290
2,436,162
Fiscal 2018 ¥2,378,511 million(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal 2019
Fiscal 2018

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end ofyear

Yen in millions

Yen in millions

Yen in millions

Yen in millions

464,457
360,955(266,910)(243,061)(198,601)(159,094)

435,319
433,916

2. Dividends
1stquarterend
YenDividend per share
2nd
3rd
Year quarter
quarter
end
end
end
Yen

Yen

Yen

Total
Yen

Total
dividends
Yen in millions

Dividend
payoutratio(Consolidated)

Ratio ofdividends
to net assets(Consolidated)%%

Fiscal 2018
41.2
5.1
－
80.00
－
80.00
160.00120,284
Fiscal 2019
39.5
5.0
－
80.00
－
80.00
160.00113,880
Fiscal 2020
－
80.00
－
80.00
160.0049.0(Projection)(Note) The dividend payout ratio (consolidated) for fiscal 2020 (projection) has been calculated based on basic earnings per
share, pursuant to the International Financial Reporting Standards (IFRS), as stated under “3. Consolidated Projected
Results for Fiscal 2020” below.

3. Consolidated Projected Results for Fiscal 2020 (January 1, 2020 - December 31, 2020)(Percentage figures represent changes from the previous year)
Profit attributable to
Basic earnings
owners of parent
per share

Revenue

Adjusted operating profit

Yen in millions%

Yen in millions%

Yen in millions%

Yen

Fiscal 2020
3,550,000
1.2
360,000
4.7
230,000(3.9)
326.68(Note) The Company calculates the consolidated projected results pursuant to the International Financial Reporting Standards(IFRS) given that it has opted to voluntarily apply the IFRS beginning with the 1st quarter of fiscal 2020. The actual values
per the IFRS for fiscal 2019 used in determining changes from the previous year constitute approximate values, and mayvary depending on accounting audit results.

* Notes(1) Changes in principal subsidiaries during fiscal 2019: No(Changes in specified subsidiaries involving change in consolidation scope)(2) Changes in accounting policies, changes in accounting estimates, and restatements
1) Changes in accounting policies due to revisions of accounting standards, etc.
2) Changes in accounting policies other than 1)
3) Changes in accounting estimates
4) Restatements

: Yes
: No
: No
: No

* For further details, please see page 15, “Changes in accounting policies” under “3. Consolidated Financial Statements
and Primary Notes (5) Notes to the Consolidated Financial Statements.”(3) Number of issued shares (common stock)1) Total number of issued shares at period end (including treasury stock):
December 31, 2019
761,536,421 shares
December 31, 2018
761,536,421 shares
2) Number of shares of treasury stock at period end
December 31, 2019
December 31, 201857,481,254 shares
9,726,528 shares

3) Average number of shares outstanding during the period
Fiscal 2019 year ended December 31, 2019
Fiscal 2018 year ended December 31, 2018

722,556,662 shares
751,760,814 shares(Reference) Summary of Non-consolidated Results
Non-consolidated Results for Fiscal 2019 (January 1, 2019 - December 31, 2019)(1) Non-consolidated Operating Results
Net sales
Fiscal 2019
Fiscal 2018

Operating profit

Ordinary profit

ProfitYen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

867,267
889,413(2.5)
3.7

105,388
135,270(22.1)(2.2)

203,233
218,951(7.2)(12.4)

224,719
176,069

27.6
(2.3)

Basic earnings
per share
Fiscal 2019
Fiscal 2018

(Percentage figures represent changes from the previous year)

Diluted earnings
per shareYen

Yen

311.00234.21

310.49233.80(2) Non-consolidated Financial Position
Total assets
Yen in millions

Fiscal 2019
1,975,746
Fiscal 2018
1,977,911(Reference) Equity: Fiscal 2019 ¥1,308,876 million

Net assets

Equity ratio

Yen in millions

1,312,152
1,442,509
Fiscal 2018 ¥1,439,056 million

Net assets per share
%

Yen

66.2
72.8

1,859.05
1,914.12

* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Statement regarding appropriate use of forward-looking statements and other notes
Forecasts based on our projections and plans for the future in this document contain unpredictable elements that
may cause fluctuations. As such, they do not constitute guarantees by the Company of the achievement of those
forecasts. Accordingly, actual business results may differ substantially from the Company’s current assessment. For
further details, please see page 4, “Projections for fiscal 2020” under “1. Operating Results (1) Analysis of Operating
Results.”

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

[ 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 2019 and 2020

…P6

2. Basic Policy on the Selection of Accounting Standard…P6

3. Consolidated Financial Statements and Primary Notes…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) Consolidated Statement of Changes in Net Assets…P11(4) Consolidated Statement of Cash Flows…P13(5) Notes to the Consolidated Financial Statements…P15(Notes regarding going concern assumption)…P15(Changes in accounting policies)…P15(Segment information)…P16(Per share information)…P18(Significant subsequent events)…P18

4. Other…P19(1) Senior Management Changes

…P19

1

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

1. Operating Results
The Bridgestone Corporation is referred to as the “Company,” and the Company and its subsidiaries are referred toas the “Group.”(1) Analysis of Operating Results[Operating results for fiscal 2019]1) Sales and earnings
Fiscal 2019

Fiscal 2018

Increase (Decrease)
AmountRatio

Yen in billions

Yen in billions

Yen in billions

3,525.6
326.0
316.8
292.5

3,650.1
402.7
381.1
291.6

(124.5)(76.6)(64.3)
0.9

Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent

%
(3)
(19)
(17)
–

During the fiscal year of 2019 (January 1, 2019 to December 31, 2019), the Group’s operating environment inJapan is being clouded by the uncertainty of the global economy and other matters, despite the domestic economic
conditions maintaining a course of gradual recovery. For our overseas operations, while instability persists in boththe political and economic fronts, economic conditions continue to recover gradually overall. The U.S. economy
continued on a recovery path, and the European economy showed signs of weak recovery. In Asia, the Chinese
economy has continued to slow gradually.
Under these operating conditions, the Group continued to focus on three priority issues to realize the ultimate
goal of becoming “a truly global company” and achieving “Dan-Totsu in all aspects of its business.” The first priority
issue is “cultivating global corporate culture.” The Group has focused on promoting brand strategies throughsponsorship and supporting activities for the Olympic and Paralympic Games Tokyo 2020. The Group has also
expanded highly competitive products and services in global markets, while building and enhancing a solutions
business that extends beyond the scope of existing business to provide social and customer value, to accelerateinnovation in technology, business model and design. In regard to the second and third priority issues, “developing
human resources capable of global management” and “upgrading the global management structure,” the Group
continuously strives to implement various measures, aimed at nurturing diverse human resources and reforming
governance structure, by investing appropriate costs.
As a result, the Group’s net sales in fiscal 2019 were ¥3,525.6 billion, a year-on-year decrease of 3%; operating
profit was ¥326.0 billion, a year-on-year decrease of 19%; ordinary profit was ¥316.8 billion, a year-on-year
decrease of 17%; and profit attributable to owners of parent was ¥292.5 billion, same level of previous year.

2

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 20192) Segment information
Fiscal 2019
Tires
Diversified
Products
Consolidated
Results

Net sales
Operating profit
Net sales
Operating profit
Net sales
Operating profit

Fiscal 2018

Increase (Decrease)
AmountRatio

Yen in billions

Yen in billions

Yen in billions

2,953.1
325.8
588.3
0.1
3,525.6
326.0

3,051.4
393.9
618.7
8.9
3,650.1
402.7(98.2)(68.0)(30.4)(8.7)(124.5)(76.6)

%
(3)
(17)
(5)
(98)
(3)
(19)

In the tire segment, globally, the Group worked on developing competitive advantage and strengthening
differentiation for the future by introducing desirable products and services, while locally, the Group responded
swiftly to demand fluctuation in each region.
In Japan, unit sales of tires for passenger cars and light trucks and unit sales of tires for trucks and busesremained unchanged from fiscal 2018. In the Americas, unit sales of tires for passenger cars and light trucks inNorth America and unit sales of tires for trucks and buses decreased compared to fiscal 2018. In Europe, unit salesof tires for passenger cars and light trucks and unit sales of tires for trucks and buses decreased compared to fiscal
2018. In China, Asia and Oceania, unit sales of tires for passenger cars and light trucks and unit sales of tires fortrucks and buses decreased compared to fiscal 2018. In the specialty tire business, unit sales of large and ultralarge radial tires for construction and mining vehicles remained unchanged from fiscal 2018.
As a result, net sales in the tires segment during fiscal 2019 were ¥2,953.1 billion, a year-on-year decrease of
3%; operating profit was ¥325.8 billion, a year-on-year decrease of 17%.
In the diversified products business, the Group is undergoing radical business restructuring of the chemical andindustrial products business under the organizational name of “chemical and industrial products,” as it heads
toward 2021, which will mark the 50th anniversary since the start of integrated business activities. Additionally, theGroup has advanced its management reform in the diversified products business overseas, and the sports, cycle,
and AHL (Active and Healthy Lifestyle) related businesses.
As a result, net sales in the diversified products segment were ¥588.3 billion, a year-on-year decrease of 5%;
operating profit was ¥0.1 billion, a year-on-year decrease of 98%.

(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.

3

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

[Projections for fiscal 2020]
The Group’s operating environment will continue to require careful attention due to such factors as fluctuations 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 an environment, the Group projects the following overall business results through the steady
implementation of Mid-Term Management Plan initiatives.
Increase (Decrease)(Note)

Fiscal 2020
projections

Exchange
Rate

Ratio

Yen in billions

Yen in billions%

3,550.0

41.9

1Adjusted operating
profit

360.0

16.0

5

Profit attributable toowners of parent

230.0

(9.4)

(4)

Revenue
Full-year

Amount%Yen

Full-year

yen/dollar

108

yen/euro

121

–

(1)
(1)

Note: The Company calculates the consolidated projected results pursuant to the International Financial ReportingStandards (IFRS) given that it has opted to voluntarily apply the IFRS beginning with the 1st quarter of fiscal
2020. The actual values per the IFRS for fiscal 2019 used in determining changes from the previous year
constitute approximate values, and may vary depending on accounting audit results.
Cautionary Notes Concerning Forward-Looking Statements
Forecasts based on our projections and plans for the future in this document contain unpredictable elements that
may cause fluctuations. As such, they do not constitute guarantees by the Company of the achievement of those
forecasts. Accordingly, actual business results may differ substantially from the Company’s current assessment.

4

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019(2) Analysis of Financial Position
1) Cash flows
Fiscal 2019

Fiscal 2018

Increase(Decrease)
AmountYen in billions

Yen in billions

Yen in billions

Cash flows from operating activities

464.4

360.9

103.5

Cash flows from investing activities(266.9)(243.0)(23.8)Cash flows from financing activities(198.6)(159.0)(39.5)

2.4(26.6)

29.1

1.4(67.8)

69.2

433.9

501.7

(67.8)

435.3

433.9

1.4

Effect of exchange rate change
on cash and cash 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

The Group’s cash and cash equivalents (hereinafter “net cash”) increased ¥1.4 billion during fiscal 2019, to ¥435.3
billion, compared with a decrease of ¥67.8 billion during the previous year.
(Cash flows from operating activities)
Net cash provided by operating activities increased ¥103.5 billion compared with the previous year, to ¥464.4 billion.
The principal contributors in that cash provided included profit before income taxes of ¥407.2 billion, compared with
¥427.7 billion during the previous year, and depreciation of ¥223.1 billion, compared with ¥200.4 billion during theprevious year. These contributors offset income taxes paid of ¥79.7 billion, compared with ¥143.7 billion during theprevious year.
(Cash flows from investing activities)
Net cash used in investing activities increased ¥23.8 billion compared with the previous year, to ¥266.9 billion. The
principal contributors in that cash used included purchase of property, plant and equipment of ¥270.5 billion,
compared with ¥257.5 billion during the previous year, and purchase of shares of subsidiaries resulting in change inscope of consolidation of ¥110.3 billion, compared with ¥2.3 billion during the previous year. These contributors offset
proceeds from sales of property, plant and equipment of ¥38.1 billion, compared with ¥8.2 billion during the previous
year, and proceeds from sales of investment securities of ¥87.1 billion, compared with ¥20.5 billion during theprevious year.
(Cash flows from financing activities)
Net cash used in financing activities increased ¥39.5 billion compared with the previous year, to ¥198.6 billion. The
principal contributors in that cash used included repayments of long-term loans payable of ¥23.3 billion, comparedwith ¥44.9 billion during the previous year, redemption of bonds of ¥70.0 billion, compared with ¥20.0 billion during
the previous year, repayments of lease obligations of ¥13.0 billion, compared with ¥5.3 billion during the previous
year, purchase of treasury shares of ¥200.0 billion, compared with ¥8.0 million during the previous year, and cash
dividends paid of ¥117.6 billion, compared with ¥120.2 billion during the previous year. These contributors offset
increase in short-term bank loans and commercial papers of ¥35.1 billion, compared with an increase of ¥24.3 billion
during the previous year, and proceeds from issuance of bonds of ¥200.0 billion (not applicable during the previousyear).

5

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 20192) Trends in cash flow indicators
Fiscal 2017

Fiscal 2018

Fiscal 2019

Equity ratio (%)

59.2

61.9

58.0

Equity ratio on market value basis (%)

99.5

82.9

72.6

Interest-bearing debt to cash flow ratio(years)

1.1

1.1

1.3

Interest coverage ratio (times)

34.6

29.3

50.1

(Note) Equity ratio: Equity (Net assets - Share acquisition rights - Non-controlling interests) / Total assets
Equity ratio on market value basis: Market capitalization / Total assets
Interest-bearing debt to 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 issued
shares 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 expenses
paid in the consolidated statements of cash flows is used.
(3) Basic Policy for the Appropriation of Profits and Dividends for the Fiscal 2019 and 2020
Regarding the interests of shareholders as an important management priority, the Company follows a basic policyof strengthening our management base in preparation for future business developments while working to improvebusiness results. In regard to distributing profits to shareholders, the Company conducts shareholder returns while
maintaining an appropriate financial position and securing the internal reserves necessary for future growthinvestments. In determining dividend payments, the Company comprehensively evaluates factors including businessresults, 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 of shareholders by issuingstable 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 a resolution of the annual shareholders’ meeting, while interim cash dividends are subject
to a resolution of the Board of Directors. Further, the Company strives to strengthen the long-term stability of ourmanagement base by using internal reserves to improve and expand production and sales systems and advanceR&D activities in Japan and overseas.
For the fiscal 2019, the Company plans to pay a cash dividend of ¥160 per share, comprising a year-end cash
dividend of ¥80 per share and an interim cash dividend of ¥80 per share.
For the fiscal 2020, the Company plans to pay a cash dividend of ¥160 per share, comprising a year-end cash
dividend of ¥80 per share and an interim cash dividend of ¥80 per share.

2. Basic Policy on the Selection of Accounting Standard
The Group has opted to voluntarily adopt the International Financial Reporting Standards (IFRS) with respect toits consolidated financial statements commencing with fiscal 2020 with the aim of heightening the quality of theGroup’s business management.

6

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

3. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheet(Millions of yen)
As of December 31, 2018

As of December 31, 2019

440,378
601,417
153,853
407,608
37,904
171,720
121,286(21,729)
1,912,440

441,255
583,223
136,044406,119
39,360150,943
135,496(21,377)
1,871,066

550,399
491,035
167,742
171,980
87,213
1,468,371

591,612502,568
188,317
188,058
91,603
1,562,160

41,38160,072
101,454

91,410113,639
205,049

219,970
11,46565,698371
62,022(1,524)
358,003
1,927,829
3,840,269

141,820
7,980
77,081
7,797
74,686(1,138)308,228
2,075,438
3,946,505

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

(Millions of yen)
As of December 31, 2018
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Commercial papers
Current portion of bonds
Lease obligations
Income taxes payable
Provision for sales returns
Provision for recall
Accounts payable - otherAccrued expenses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for product warranties
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

8

As of December 31, 2019

233,970
100,627
20,95570,0001,686
15,073
3,531–
182,204
215,068
44,001
887,119

202,048
76,74558,696–
12,09440,497
3,337
4,534
175,562
193,756
71,039838,312150,000
38,041
27,182
27,72328,7591,511
196,005
47,765516,988
1,404,107

350,000
34,24965,673
34,9772,687
874
201,41274,026
763,9021,602,215

126,354
121,997
2,362,736(32,648)
2,578,440

126,354
121,997
2,535,720(232,330)
2,551,742

108,888

55,363

1,730(174,850)(135,696)(342)(189,271)(129,054)(199,928)(263,303)

3,452
54,1982,436,162
3,840,269

3,275
52,576
2,344,290
3,946,505

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Millions of yen)
Fiscal period ended
December 31, 2018

Fiscal period ended
December 31, 2019

3,650,111
2,268,743
1,381,367

3,525,600
2,201,684
1,323,916

185,880
113,796
264,60220,50835,511
103,551
254,783

184,192
106,983
262,963
19,92042,528105,283
275,946

978,635

997,817402,732

326,098

4,453
7,402
3,853
14,70330,413

6,529
6,357
4,980
10,15128,01812,8107,041
32,16052,012
381,132

10,311
8,013
18,96937,293
316,823–
16,237–30,39846,63530,60876,6468,880–
116,134––––
427,768
110,438
17,579128,017
299,7508,108
291,642

13,665
4,621
7,420
25,706407,251
113,474(5,170)108,303
298,947
6,349
292,598

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Sales fareAdvertising and promotion expenses
Salaries, allowances and bonuses
Retirement benefit expenses
Depreciation
Research and development expenses
Other
Total selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Settlement received
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on refund of PIS/COFINS for prior periods
Gain on establishment in jointly controlled entity
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on retirement of non-current assets
Loss related to recall
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

(Consolidated Statement of Comprehensive Income)(Millions of yen)
Fiscal period ended
December 31, 2018

Fiscal period ended
December 31, 2019299,750

298,947(67,787)(53,518)500(81,140)(864)(11,647)

12,2796,926(1,442)(2,213)(137,589)
162,160(61,317)
237,629

156,553

229,223

5,607

8,406

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

10Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019(3) Consolidated Statement of Changes in Net Assets
Previous Year (Year ended December 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

126,354

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity122,984

2,342,822(206,052)

2,386,108

Cumulative effects ofchanges in accounting
policies
Restated balance

20,879126,354

122,984

20,8792,363,701(206,052)

2,406,987

Changes of items during
periodDividends of surplus(120,278)(120,278)

Profit attributable to ownersof parent

291,642

291,642

Purchase of treasury
shares

(8)

(8)

(108)

285

177

(172,220)

173,126–

Disposal of treasury shares
Retirement of treasury
shares(905)

Capital increase of
consolidated subsidiaries

(80)

(80)

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period

–

(986)

(964)

173,403

171,452

126,354

121,997

2,362,736(32,648)

2,578,440

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period

176,686

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

(55)

(93,479)(127,112)

Cumulative effects ofchanges in accounting
policies
Restated balance

Shareacquisitionrights

Noncontrollinginterests

3,629

56,961(20,879)
176,686(55)(93,479)(147,991)

3,629

56,961

Net changes of items otherthan shareholders’ equity(67,798)

1,786(81,370)

12,294(177)(2,763)

Total changes of items during
period(67,798)

1,786(81,370)

12,294(177)(2,763)

Balance at end of current
period108,888

1,730(174,850)(135,696)

3,452

54,198Changes of items during
periodDividends of surplus
Profit attributable to ownersof parent
Purchase of treasury
shares
Disposal of treasury shares
Retirement of treasury
sharesCapital increase of
consolidated subsidiaries

11Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

Current Year (Year ended December 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period

126,354

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity121,997

2,362,736(32,648)

2,578,440

Cumulative effects ofchanges in accounting
policies
Restated balance(1,768)126,354

121,997(1,768)2,360,967(32,648)

2,576,671

Changes of items during
periodDividends of surplus(117,701)(117,701)

Profit attributable to ownersof parent

292,598

292,598

Purchase of treasury
shares
Disposal of treasury shares(200,003)(200,003)

(144)

321

177

Net changes of items otherthan shareholders’ equity
Total changes of items during
periodBalance at end of current
period––174,752(199,681)(24,929)

126,354

121,997

2,535,720(232,330)

2,551,742

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities
Balance at beginning ofcurrent period

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Share
acquisitionrights

Noncontrollinginterests

108,888

1,730(174,850)(135,696)

3,452

54,198108,888

1,730(174,850)(135,696)

3,452

54,198Net changes of items otherthan shareholders’ equity(53,524)(2,072)(14,420)

6,642

(177)

(1,621)

Total changes of items during
period(53,524)(2,072)(14,420)

6,642

(177)

(1,621)

Balance at end of current
period55,363(342)(189,271)(129,054)

3,275

52,576

Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
periodDividends of surplus
Profit attributable to ownersof parent
Purchase of treasury
shares
Disposal of treasury shares

12Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal period ended
December 31, 2018
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted forusing equity method
Settlement received
Loss (gain) on sales of non-current assets
Loss (gain) on sales of investment securities
Gain on refund of PIS/COFINS for prior periods
Gain on establishment in jointly controlled entity
Impairment loss
Loss on retirement of non-current assets
Loss related to recall
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts
payable - trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Settlement package received
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of long-term loans receivable
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing
activities

13

Fiscal period ended
December 31, 2019427,768
200,476
4,559
6,562(11,855)
12,8103,332

407,251
223,100
6,886
16,437(12,886)
10,311
4,719

1,414

3,350

(3,853)–(16,237)–(30,398)–––(4,980)(30,608)(76,646)(8,880)–13,665
5,552
7,420(57,384)

23,817(55,837)

11,572

15,322(39,647)

4,661
501,340
11,805(12,328)
3,853(143,715)(24,845)535,590
12,876(9,276)
4,980(79,712)360,955

464,457(257,548)(270,530)

8,234

38,101(5,753)(2,867)
20,524(5,667)(9,394)(2,642)
87,103(2,066)(2,368)(110,357)

2,384

2,875

(243,061)(266,910)

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

(Millions of yen)
Fiscal period ended
December 31, 2018

Fiscal period ended
December 31, 201924,34735,132

15,823(44,955)–(20,000)(5,318)(8)(120,234)(9,035)285

29(23,361)
200,000(70,000)(13,087)(200,003)(117,678)(9,953)321(159,094)(198,601)(26,680)

2,456(67,881)

1,402

501,797433,916

433,916435,319

Cash flows from financing activities
Increase (decrease) in short-term bank loans
and commercial papers
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Repayments of lease obligations
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

14Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019(5) Notes to the Consolidated Financial Statements(Notes regarding going concern assumption)
Not applicable(Changes in accounting policies)(Adoption of ASU No. 2014-09 “Revenue from Contracts with Customers”)
Certain consolidated subsidiaries in overseas which apply U.S. GAAP have adopted ASU No. 2014-09,“Revenue from Contracts with Customers” (May 28, 2014; hereinafter “ASU No. 2014-09”) from the beginning offiscal 2019.
ASU No. 2014-09 calls for an entity to recognize revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services. Certain overseas subsidiaries adopted the method by which the cumulative effect ofretrospectively applying this standard was recognized at the date of initial application.
As a result, under current liabilities, other increased by ¥17,210 million and accrued expenses decreased by¥19,980 million; under non-current liabilities, other increased by ¥25,759 million and provision for productwarranties decreased by ¥25,759 million; and retained earnings increased by ¥229 million at the beginning offiscal 2019. This change in accounting policies has an immaterial effect on operating profit, ordinary profit andprofit before income taxes of fiscal 2019.
It also has an immaterial effect on net assets per share, basic earnings per share, and diluted earnings per shareof fiscal 2019.
(Adoption of IFRS 16 “Leases”)
Certain consolidated subsidiaries in overseas which apply International Financial Reporting Standards (IFRS)
have adopted IFRS 16 “Leases” (January 13, 2016; hereinafter “IFRS 16”) from the beginning of fiscal 2019.
IFRS 16 requires lessees to recognize assets and liabilities for, in principle, all leases. Certain overseas
subsidiaries adopted the method by which the cumulative effect of retrospectively applying this standard wasrecognized at the date of initial application.
As a result, assets increased by ¥49,606 million, liabilities increased by ¥51,605 million, and retained earnings
decreased by ¥1,998 million at the beginning of fiscal 2019. The increase in assets was mainly due to the increasein property, plant and equipment, and the increase in liabilities was mainly due to the increase in lease obligations.
This change in accounting policies has an immaterial effect on operating profit, ordinary profit and profit before
income taxes of fiscal 2019.
It also has an immaterial effect on net assets per share, basic earnings per share, and diluted earnings per shareof fiscal 2019.

15

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

(Segment information)
1. Overview of reporting segments
The Group’s reporting segments are components of the Group for which discrete financial information isavailable, and that the Board of Directors and the Management Committee regularly review in order to decide
the allocation of business resources and assess operating performance.
The Group’s reporting segments consist mainly of Tire business including the production and sale of tires andtubes, sale of wheels and accessories, the production and sale of retread material and services, auto
maintenance and repair services, and Diversified products business including Chemical and Industrial Products,
BSAM Diversified Products (Note), sporting goods, bicycles, etc. Thus, the Group has two reporting segments:
Tires and Diversified products.
(Note) BSAM Diversified Products: A business under BRIDGESTONE AMERICAS, INC. supplying commercial roofing materials, etc.

2. Methods of calculating amounts for net sales, profit/loss, assets and other items by reporting segment
The accounting treatment methods for each reported business segment are consistent with those outlined in“Basic important matters for preparation of consolidated financial statements.” Reporting segment profit figures
are on an operating profit basis. Internal sales and transfers between segments are based on prices for third-party
transactions and total cost.
3. Information regarding net sales, profit/loss, assets and other items by reporting segment
Consolidated Results for Fiscal 2018 (January 1, 2018 - December 31, 2018)
Diversified
Products

Tires
Net sales:
External sales
Inter-segment sales ortransfers
Total
Segment profit(Operating profit)
Segment assets
Other
Depreciation andamortization
Amortization of goodwill
Investment for equitymethod affiliates
Increase in property,
plant and equipment andintangible assets(Yen in millions)

Adjustments(Notes)

Total

Consolidated

3,041,099

609,0113,650,111–

3,650,111

10,301

9,744

20,045(20,045)–

3,051,400

618,755

3,670,156(20,045)

3,650,111

393,9548,920

402,874(142)

402,732

3,392,479

452,646

3,845,125(4,856)

3,840,269

181,345

19,130200,476–

200,476

3,035

1,524

4,559

–

4,559

47,394408

47,80335

47,838241,047

31,849272,897–

272,897

Notes: The adjustments are as follows.
(Note 1) Adjustments of segment profit represent elimination of inter-segment transactions.
(Note 2) Adjustments of segment assets represent elimination of inter-segment receivables and payables.

16

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

(Yen in millions)

Consolidated Results for Fiscal 2019 (January 1, 2019 - December 31, 2019)
Diversified
Products

Tires
Net sales:
External sales
Inter-segment sales ortransfers
Total
Segment profit(Operating profit)
Segment assets
Other
Depreciation andamortization
Amortization of goodwill
Investment for equitymethod affiliates
Increase in property,
plant and equipment andintangible assets

Adjustments(Notes)

Total

Consolidated

2,944,119

581,480

3,525,600–

3,525,600

8,982

6,821

15,804(15,804)–

2,953,102

588,3023,541,404(15,804)

3,525,600

325,875165

326,04157

326,098

3,546,260

409,671

3,955,932(9,426)

3,946,505

202,044

21,056

223,100–

223,100

5,385

1,500

6,886

–

6,886

46,381423

46,80434

46,839385,641

28,254

413,896–

413,896

Notes: The adjustments are as follows.
(Note 1) Adjustments of segment profit represent elimination of inter-segment transactions.
(Note 2) Adjustments of segment assets represent elimination of inter-segment receivables and payables.

17

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

(Per share information)(Yen)
Previous Year
(Year ended December 31, 2018)

Items
Net assets per share

Current Year
(Year ended December 31, 2019)

3,163.71

3,250.37

Basic earnings per share

387.95404.95

Diluted earnings per share

387.28404.28

Note: Basic earnings per share and diluted earnings per share are calculated based on the following:
Previous Year
(Year ended December 31, 2018)(Yen in millions)

Current Year
(Year ended December 31, 2019)(Yen in millions)291,642

292,598――

291,642

292,598(Thousands of shares)
751,760(Thousands of shares)(Thousands of shares)
722,556(Thousands of shares)

Adjustments of profit attributableto owners of parent――

Increase of common stock(stock option portion included in
the above)

1,299

1,194

(1,299)(1,194)――――――――――――――――――――――――――――――――――

Basic earnings per share
Profit attributable to owners ofparentAmount not attributable tocommon shareholders
Profit attributable to owners ofparent related to common stock
Average number of shares ofcommon stock during term
Diluted earnings per share

Summary of potential shares notincluded in calculation of diluted
earnings per share because there
are no dilutive effects(Significant subsequent events)
Not applicable

18

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

4. Other(1) Senior Management Changes
1) New Members of the Board of Directors

Current occupation in parentheses

To be assumed after approval at the Company’s Annual Shareholders' Meeting on March 24, 2020
Member of the Board

Shuichi Ishibashi[ Vice Chair and Representative

CEO and Representative

Executive Officer, G-Chief

Executive Officer

Solution Officer
Responsible for G Solution
Strategy ]Member of the Board

Hideo Hara

[ Fellow ]2) Re-elected Members of the Board of Directors

Current occupation in parentheses

To be assumed after approval at the Company’s Annual Shareholders' Meeting on March 24, 2020
Chairman of the Board

Masaaki Tsuya[ Chairman of the Board

Chairman of Bridgestone

CEO and Representative

Americas, Inc.

Executive Officer
Chairman of Bridgestone
Americas, Inc. ]Member of the Board
President
COO and Representative
Executive Officer
Concurrently responsible for
BSJP

Akihiro Eto[ Member of the Board
President
COO and Representative
Executive Officer
Concurrently responsible for
BSJP ]

Member of the Board

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

Yuri Okina[ Member of the Board ]Member of the Board

Kenichi Masuda[ Member of the Board ]Member of the Board

Kenzo Yamamoto[ Member of the Board ]Member of the Board

Keikou Terui[ Member of the Board ]Member of the Board

Seiichi Sasa

[ Member of the Board ]Member of the Board

Yojiro Shiba[ Member of the Board ]19

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

Member of the Board

Yoko Suzuki[ Member of the Board ]Member of the Board

Tsuyoshi Yoshimi[ Member of the Board ]* Mr. Scott Trevor Davis, Ms. Yuri Okina, Mr. Kenichi Masuda, Mr. Kenzo Yamamoto,
Mr. Keikou Terui, Mr. Seiichi Sasa, Mr. Yojiro Shiba and Ms. Yoko Suzuki are candidates for outside
directors as set forth in Article 2(xv) of the Companies Act.

3) Members of the Nominating Committee

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 24, 2020
Member of the Board

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

Yuri Okina[ Member of the Board ]Member of the Board

Kenichi Masuda[Member of the Board ]* Mr. Scott Trevor Davis, Ms. Yuri Okina and Mr. Kenichi Masuda are candidates for outside directors as set
forth in Article 2(xv) of the Companies Act.

4) Members of the Audit Committee

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 24, 2020
Member of the Board

Kenzo Yamamoto[ Member of the Board ]Member of the Board

Keikou Terui[ Member of the Board ]Member of the Board

Seiichi Sasa

[ Member of the Board ]Member of the Board

Yojiro Shiba[ Member of the Board ]Member of the Board

Yoko Suzuki[ Member of the Board ]Member of the Board

Hideo Hara

[ Fellow ]Member of the Board

Tsuyoshi Yoshimi[ Member of the Board ]* Mr. Kenzo Yamamoto, Mr. Keikou Terui, Mr. Seiichi Sasa, Mr. Yojiro Shiba and Ms. Yoko Suzuki are
candidates for outside directors as set forth in Article 2(xv) of the Companies Act.
20

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 20195) Members of the Compensation Committee

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 24, 2020
Member of the Board

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

Yuri Okina[ Member of the Board ]Member of the Board

Kenichi Masuda[ Member of the Board ]* Mr. Scott Trevor Davis, Ms. Yuri Okina and Mr. Kenichi Masuda are candidates for outside directors as set
forth in Article 2(xv) of the Companies Act.

6) Re-elected Members of Executive Officers

Current occupation in parentheses

To be assumed after approval at the Board Meeting on March 24, 2020
Member of the Board

Shuichi Ishibashi[ Vice Chair and Representative

CEO and Representative

Executive Officer, G-Chief

Executive Officer

Solution Officer
Responsible for G Solution
Strategy ]Member of the Board
Akihiro Eto
President
COO and Representative
Executive Officer
Concurrently responsible for BSJP

[ Member of the Board
President
COO and Representative
Executive Officer
Concurrently responsible for
BSJP ]

Vice Chair and Representative

Masahiro Higashi[ Vice Chair and Representative

Executive Officer,

Executive Officer,

G-Chief Solution Officer

Responsible for G-MAA

Responsible for G Solution(Mining, Aircraft, Agriculture)

Strategy, Finance and Human

Solutions, GBE (Global BusinessResources;

Enhancement), Finance andConcurrently responsible for G

Human Resources;

Original Equipment Strategy

Concurrently responsible for
G Original Equipment Strategy ]21

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2019

Executive Vice President andPaolo Ferrari[ Executive Vice President andExecutive Officer of Bridgestone

Executive Officer, G-Chief Digital

Corporation

Strategic Officer of Bridgestone

Member of the Board, CEO andCorporation

President, COO of Bridgestone

Responsible for G Digital Strategy

Americas, Inc.

Member of the Board, CEO andPresident, COO of Bridgestone
Americas, Inc. ]Executive Vice President andChristine[ Executive Vice President andExecutive Officer, G-Chief

Karbowiak

Executive Officer, G-Chief

Sustainability Officer of

Sustainability Officer ofBridgestone Corporation

Bridgestone Corporation

Responsible for G Public

Responsible for G Public

Relations, Government Relations

Relations, Government Relations

and Sustainability

and Sustainability

Vice Chair, Chief Administrative

Vice Chair, Chief Administrative

Officer, Chief Risk Officer andOfficer, Chief Risk Officer andExecutive Vice President of

Executive Vice President ofBridgestone Americas, Inc.

Bridgestone Americas, Inc. ]Senior Vice President andMasato Banno[ Senior Vice President andExecutive Officer, G-Chief

Executive Officer, G-Chief

Technical Officer

Technical Officer

Responsible for Technology,

Responsible for Technology,

Quality Management;

Quality Management;

Concurrently responsible for

Concurrently responsible for

Products and Technology

Products and Technology

Development

Development ]7) New Member of Corporate Officers

Current occupation in parentheses

Effective March 24, 2020

Vice President and Officer

Hideyuki Takeda[ Director

Original Equipment Tire Sales

Assistant to Vice President andJapan

Officer, Original Equipment Tire

Concurrently Director, Original

Sales Japan ]Equipment Tire Sales Japan
Division II

22

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 20198) Promotion of Corporate Officers

Current occupation in parentheses

Effective March 24, 2020

Vice President and Senior

Yoshikazu Shida[ Vice President and Officer

Officer

Seconded to Bridgestone Asia

Seconded to Bridgestone Asia

Pacific Pte. Ltd.

Pacific Pte. Ltd.

Executive Chair of Bridgestone

Member of the Board, CEO andAsia Pacific Pte. Ltd.

COO of Bridgestone Asia Pacific

Chairman of Bridgestone (China)

Pte. Ltd.

Investment Co., Ltd. ]Chairman of Bridgestone(China) Investment Co., Ltd.

9) Retiring Corporate Officers
Effective March 24, 2020

Masashi Ohara[ Vice President and Senior
Officer Responsible for CoreTechnology ][ END ]

23