Financial Results for Fiscal 2012

Bridgestone CorporationFebruary 18, 2013

Contents

1. Business and Financial Performance for Fiscal 2012

P. 3

2. Consolidated Projections for Fiscal 2013

P. 10

3. To Become a Truly Global Company

P. 15

Copyright © 2013 Bridgestone Corporation Feb.18, 20132

1. Business and Financial Performance for Fiscal 2012

Business Environment Surrounding Bridgestone Group in 2012
Currency Exchange

Estimated Tire Demand
Demand in emerging countries increased.
Demand for replacement tires in developed
countries decreased except Japan.

1sthalf

2ndhalf

FiscalFiscal2011

US Dollar

8080

8080Euro103102103111

Tire Demand for 2012 : Original Equipment (VS 2011)
Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan119%

111%

N. America

122%

101%

Europe90%

95%

Emerging
countries total*1105%

127%

Tire Demand for 2012 :Replacement (VS 2011)

Passenger
Tires

Truck and BusTires

Japan

100%

94%

N. America

97%

95%

Europe87%

81%

Emerging
countries total*1105%

120%*1 Total of Thailand, Indonesia, India, and China*2 The numbers of demand are estimated by Bridgestone Corporation(Ref.)2012

Yen appreciated against euro while dollar remained
unchanged vs. fiscal 2011.

Raw Materials
Market trend of natural rubber and crude oil (Average)(Ref.)

2012
1sthalf

2ndhalfFiscal

Fiscal2011

Natural Rubber<TSR20>*(￠/kg)

350

281

315

451

Natural Rubber<RSS#3>*(￠/kg)

373

303

337

479

Crude Oil
<WTI>(＄/ｂｂl)

98

90

94

95

*Source : Current Prices for Singapore Commodity Exchange Limited

Price of NR dropped down from 2011 and remained stable.
Copyright © 2013 Bridgestone Corporation Feb.18, 20134

Highlights to Financial Results for Fiscal 2012
Achieved ROA6%in 2012Management Goal

Increased both net sales and operating income vs. fiscal 2011

ConsolidatedResults(Net sales,Operating income,Business/GeographicSegments
Balance Sheet)Price andRaw material costs＞

Volume andAppreciated yen<Business Segments>
Tire: Increased net sales and operating income.
Diversified Products: Operating income increased significantly.
<Geographic segments>
Net sales: Decreased in Europe due to a decline of sales volume.
Operating income: All segments increased except Europe.

<Balance Sheet>
Strict control of current assets and appropriate capital expenditure.

Reinforce
Fundamental
Competencies

Implement specification optimization and conversion cost improvement.
Develop optimum production and supply structures on Group/Global basis.

Copyright © 2013 Bridgestone Corporation Feb.18, 20135

Consolidated Results for Fiscal 2012
Yen/US dollar rate:

8080-79

Yen/Euro rate:111

103(8)

99(Yen in billions)（ReferenceAug 7, 2012
announcement）

2011
Results

2012
Results

VS PY (%)

3,024.3

3,039.7+13,130.0

Tires

2,539.7

2,557.2+12,620.0

Diversified
Products

500.5

499.0

(0)

520.0

191.3

285.9

+49287.0（Ratio）6.3%（Ratio）9.4%（Ratio）+3.1%（Ratio） 9.2%

Tires

185.4

260.4+40262.0

DiversifiedProducts

5.8

25.5+339

25.0

Ordinary Income

179.3

285.0

+59269.0

Net Income

102.9

171.6+67

172.0

22 yen32 yen+10 yen

32 yenNet Sales

Operating Income

2012 Projections*Figures within parentheses mean minus

Dividends

Copyright © 2013 Bridgestone Corporation Feb.18, 2013

6

Analysis of Consolidated Operating Income for Fiscal 2012
(Yen in billions)
300
Raw
Materials+92.0

Price, Mix,
Volume etc. Depreciation+1.0+22.6

250

200

150

285.9
Foreign
Strategic
Exch. LossProducts(12.0)
(5.0)
191.3

SGA(4.0)1002011
Operating Income

+94.6

2012
Operating Income*Figures within parentheses mean minus
Copyright © 2013 Bridgestone Corporation Feb.18, 20137

Financial Results for Fiscal 2012 : Geographic Segments(Yen in billions)（ReferenceAug 7, 2012
announcement）

2011
Results

2012
Results

VS PY
(%)

Japan

1,229.0

1,218.7(1)

1,270.0

The Americas

1,288.6

1,330.9+31,350.0

Europe

413.1

348.8

(16)

360.0

Other Regions

699.6

699.9

+0720.0

Consolidated Net Sales

3,024.3

3,039.7+13,130.0

Japan69.5

158.4

+128

161.0

The Americas

61.9

92.3

+49

88.0

Europe11.3

1.8(84)

6.0

Other Regions

48.255.7+1656.0

Consolidated Operating
Income191.3

285.9+49287.0

2012 Projections*Figures within parentheses mean minus
Copyright © 2013 Bridgestone Corporation Feb.18, 2013

8

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

FY 2011

FY 2012(As of Dec. 31, 2011)(As of Dec. 31, 2012)

VS. Dec. 31, 2011

Total Assets

2,677.3

3,039.2+361.9Total Equity
Ratio of total equity to total assets (%)

1,165.6
42.2

1,419.0
45.2+253.4+3.0

Interest-Bearing Debt (Net)473.7

350.6(123.0)

FY 2011

FY 2012

Cash Flow by Operating Activities
Cash Flow by Investing Activities

152.1(177.0)404.4(237.9)+252.3(60.8)

Free Cash Flow(24.9)

166.5+191.4

Capital Expenditure
Depreciation
ROA (%)

201.3
158.0
3.8

245.6
155.0
6.0

+44.2
(2.9)
+2.2

VS. PY*Figures within parentheses mean minus
Copyright © 2013 Bridgestone Corporation Feb.18, 20139

2. Consolidated Projections for Fiscal 2013

Business Environment Surrounding Bridgestone Group in 2013
Estimated Tire DemandCurrency Exchange

Tire Demand for 2013 : Original Equipment (VS 2012)
Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan93%

101%N. America

100%108%

Europe100%

100%

Emerging
countries total*1

105%

108%

Tire Demand for 2013 : Replacement (VS 2012)
Passenger
Radial Tires

Truck and Bus
Radial Tires

Japan93%

94%

N. America

104%

102%

Europe99%

104%

Emerging
countries total*1114%

114%

2011

2012

2013

MTP
2012

US Dollar

80

80

8980

Euro111103119105

Yen depreciate against dollar and euro vs. fiscal
2012.

Raw Materials*1 Total of Thailand, Indonesia, India, and China*2 The numbers of demand are estimated by Bridgestone Corporation*source : Singapore Commodity Exchange Limited
Copyright © 2013 Bridgestone Corporation Feb.18, 201311Consolidated Projections for Fiscal 2013
Yen/US dollar rate:

8089+9Yen/Euro rate:103

119+162012
Results

2013
Projections

VS PY (%)

3,039.7

3,550.0+17

Tires

2,557.2

3,020.0+18

Diversified
Products

499.0

530.0+6

285.9

382.0

+34（Ratio）9.4%（Ratio）10.8%（Ratio）+1.4%

Tires

260.4

346.0+33

Diversified
Products

25.5

35.0+37

Ordinary Income

285.0

365.0+28

Net Income

171.6

235.0+37

Dividends

32 yen54 yen+22 yen(Yen in billions)

Net Sales

Operating Income

Copyright © 2013 Bridgestone Corporation Feb.18, 2013

12Analysis of Consolidated Operating Income for Fiscal 2013
(Yen in billions)

StrategicRaw
Products Materials
+29.0
+3.0

400
Price, Mix,
Volume etc.
+35.0

350

ForeignExch. Loss
+75.0
SGA
(39.0)

300

250

382.0
Depreciation(7.0)

Exchange rate
Sensitivity (full year)

285.9

USD：3.9bil. Yen
EUR：0.9bil. Yen

200

2012
Operating Income+96.0

2013
Operating Income*Figures within parentheses mean minus

Copyright © 2013 Bridgestone Corporation Feb.18, 201313

Financial Projections for Fiscal 2013 : Geographic Segments(Yen in billions)

2012
Results

2013
Projections

VS.
PY(%)

Japan

1,218.7

1,300.0+7The Americas

1,330.9

1,560.0+17Europe

348.8

430.0+23

Other Regions

699.9

890.0+273,039.7

3,550.0+17Japan

158.4

202.0+28The Americas

92.3

116.0+26Europe

1.8

13.0+606

Other Regions

55.7

73.0+31285.9

382.0

+34

Consolidated Net Sales

Consolidated Operating
IncomeCopyright © 2013 Bridgestone Corporation Feb.18, 201314

3. To Become a Truly Global Company

Basic concepts of management
2013 : The turning point
・ Firestone Merger ： 1988 (25th anniversary)・ 1st phase of management reforms : ROA 6%General overview : So far on the right track of the reforms
・ Core ： Corporate Philosophy (the Bridgestone Essence)・ Basic Stance : Lean & Strategic
・ Tools for implementation : Mid-Term Plan, SBU

In the process of management reforms
To aim for “the higher level”
Copyright © 2013 Bridgestone Corporation Feb.18, 201316

Basic concepts of management
2nd phase of the management reforms (from 2012)
・ Continue reforms(further enhancement of quality in products and services, while increasing speed)

・ Further strengthen corporate governance・ Group-Global optimization
・ Establish our advantage in competitiveness (Innovation)

・Create customer value“Second・Promote diversityFoundation”
・Create cultures and substances as global company

To Become a Truly Global CompanyCopyright © 2013 Bridgestone Corporation Feb.18, 201317

Statements made in this presentation with respect to Bridgestone's current plans,estimates, strategies and beliefs and other statements that are not historical facts are forward-looking
statements about the future performance of Bridgestone. Forward-looking statements
include, but are not limited to, those statements using words such as "believe," "expect," "plans,""strategy," "prospects," "forecast," "estimate," "project," "anticipate," "may" or "might" and words ofsimilar meaning in connection with a discussion of future operations, financial performance,events or conditions. From time to time, oral or written forward-looking statements may also beincluded in other materials released to the public. These statements are based on management'sassumptions and beliefs in light of the information currently available to it. Bridgestone cautions
you that a number of important risks and uncertainties could cause actual results to differ
materially from those discussed in the forward-looking statements, and therefore you should notplace undue reliance on them. You also should not rely on any obligation of Bridgestone to updateor revise any forward-looking statements, whether as a result of new information, future events orotherwise. Bridgestone disclaims any such obligation.