Financial Resultsfor 1st Half of Fiscal 2017

Bridgestone Corporation
August 9, 2017

Contents

１. Business and Financial Performancefor 1st Half of Fiscal 2017

P.3

２. Consolidated Projections for Fiscal 2017 P.10

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１. Business and Financial Performancefor 1st Half of Fiscal 2017

Business Environment Surrounding Bridgestone Group
Currency
Exchange●Stayed at almost same level as PY●1USD=112yen 1EUR=122yen

Raw MaterialPrice●Continued to rise primarily in Q1（Ref.）2016 1H 1USD＝111yen 1EUR＝124yen

Tire Demand(PSR/TBR)●OE: Vehicle production generally strongat global level●REP: - Modest growth continued withrecovery in emerging markets- Pre-buy demand before price increase

Market trend of natural rubber and crude oil(Average)
2016
2017

PSR

TBR

OE

REP

OE

REP

Japan

107%

107%

104％

116%

229

N. America

95％

101％

104％

96%

50

Europe

101％

99％

106％

107％

1st half

2nd half

1st half

Natural Rubber〈TSR20〉*（￠/kg）

126

149

181

Natural Rubber〈RSS#3〉*（￠/kg）

148

180

Crude Oil
〈WTI〉（$/bbl）

39

47*Source: Singapore Commodity Exchange Limited

Tire Demand (Year-on-Year/unit base%)

Note: The numbers of demand are estimated by Bridgestone Corporation
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Tire Sales Growth for 1st Half of Fiscal 2017
PSR
OE & REP
GlobalOE & REP
103％

OE

Global

TBR
109％

OE
Japan

116%

Japan

104%

N. America

100%

N. America

104%

Europe111%Europe104%

China/
Asia Pacific104％

China/
Asia Pacific

162％

REP

(Year-on-Year, unit base)

ORR ※Ultra-Large

115％

Large

145％

- Recovered along withdemand trend- Sales higher than Projection

PSR

REPHRD (≧ 18”)

Japan

104%

Japan

117%

N. America

96%

N. America

108%

Europe101%

Europe114%China/
Asia Pacific104％

China/
Asia Pacific104％

Global120%※ Note: Based on rubber weight for
Ultra-Large and Large ORR

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Consolidated Results for 1st Half of Fiscal 2017
(Yen in billions)2016
1st Half Results

2017
1st Half Results

VS PY（%）（Ref. Feb 17, 2017
announcement）
st2017 1 Half Projections

Net Sales

1,646.5

1,742.8+6

1,710.0

Tires

1,352.7

1,439.7+6

1,420.0

301.0

310.7

+3290.0

218.2

202.3

(7)

211.0

DiversifiedProducts

Operating
Income(Ratio)13.3%(Ratio) 11.6%(Ratio) (1.6pt)(Ratio) 12.3%

Tires

198.6

185.1

(7)

196.0

DiversifiedProducts

19.5

17.1

(12)

15.0

213.9

195.8

(8)

204.0

Profit Attributableto Owners ofParent

123.3

131.8

+7

130.0

Dividends perShare

70 yen70 yen－70 yen

Yen/US dollar rate:

111 yen112 yen+1 yen110 yen

Yen/Euro rate:

124 yen

122 yen△2 yen114 yenOrdinary
IncomeCopyright © 2017 Bridgestone Corporation | Aug 9, 2017

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Analysis of Consolidated Operating Income for 1st Half of Fiscal 2017
(Yen in billions)250
Raw Materials230(68.0)

Price, Mix,
Volume etc.

+65.1

210
190
170

218.2

150

SGA

(7.0)

ForeignExch. Loss

Depreciation(4.0) (2.0)

202.31301102016 1st Half
Operating Income(15.9)

20171st Half
Operating Income

Note: Figures within parentheses mean minus
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Financial Results for 1st Half of Fiscal 2017: Geographic Segments(Yen in billions)(Yen in billions)2016
1st Half
Results

1st Half

Results

VS PY(％)（Ref. Feb 17, 2017
announcement）
2017 1st HalfProjections

1,646.5

1,742.8+6

1,710.0

Japan519.8

534.5+3520.0

The Americas

822.2

863.3

+5860.0

EMEA*

243.9

270.9

N/A*

260.0

China, Asia-Pacific*

311.8

310.5

N/A*

290.0

218.2

202.3

(7)

211.0

Japan

67.7

65.0

(4)

54.0

The Americas

101.4

89.8

(11)

115.0

EMEA*

13.9

5.3

N/A*

9.0

China, Asia-Pacific*

31.9

34.8

N/A*

30.0

Consolidated
Net Sales

Consolidated
Operating Income2017* At the beginning of fiscal year 2017, “Russia” formerly included in the “Other regions” segment
was transferred to the “EMEA” segment as the result of the restructuring of the tire business SBUs.
Note: Figures within parentheses mean minus
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B/S Highlights for 1st Half of Fiscal 2017
(Yen in billions)(Yen in billions)

FY2017 1st Half
(As of Jun. 30, 2017)

VS. Dec. 31, 2016*

Total Assets

3,804.9+88.9

incl. Total Current Assets

1,893.1+70.9

incl. Total Fixed Assets

1,911.8+17.9

2,341.6(4.2)

Ratio of total equity to total
assets60.0%(1.5pt)Interest-Bearing Debt(Net)12.1+141.1

2017
1st Half Results

VS. PY

Capital Expenditure

77.8+3.1

Depreciation

96.0+3.0

Net Assets*The actual closing balance of Balance Sheet in 2016 has been revised, due to the change in accounting
standard of BRIDGESTONE EUROPE NV/SA(change from GAAP to IFRS)
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2. Consolidated Projections for Fiscal 2017

Forecast of Business Environment Surrounding Bridgestone Group(”Projection”; released at Feb. 17th)

Currency
Exchange●Weaker Japanese yen than PY, Projection

Raw MaterialPrice●2H assumption slightly lower than Projection（Ref.）2016
FY 1USD＝109yen
Projection FY 1USD＝110yenTire Demand(PSR/TBR)
Currency Exchange

1st Half

US Dollar

Euro112122●Still higher FY assumption than PY● Steadily growing trend continues globally
Estimated Tire Demand (Year-on-Year/unit base%)
Note: The numbers of demand are estimated by Bridgestone Corporation

2017（Yen）

1EUR＝120yen
1EUR＝114yen

2nd Half

110
122

PSR

FY

111
122

TBR

OE

REP

OE

REP

Japan

103％

99％

99％

101％

N. America

92％

100％

97％

101％

Europe

100％

99％

103％

98％

Asia*1

100％

108％

102％

101％

*1 Total of Thailand, Indonesia, India, and China
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Tire Sales Growth Projections for Fiscal 2017
PSR
OE & REP
GlobalOE & REP～+5%

OE

Global

TBR+6%～+10%OE
Japan+6%～+10%Japanaround ±0%

N. America

around ±0%

N. America～+5%Europe+6%～+10%Europe～+5%China/
Asia Pacific+6%～+10%China/
Asia Pacific+31%～+35%

REP(Year-on-Year, unit base)

ORR ※Ultra-Large

115％

Large

130％

Ultra-Large and Large ORR
recover throughout the year

PSR

REP

HRD (≧ 18”)

Japan

～+5%

Japan+6%～+10%

N. America

around ±0%

N. America+6%～+10%Europe～+5%Europe+6%～+10%

China/
Asia Pacific+6%～+10%China/
Asia Pacific+11%～+15%

Global120%※ Note: Based on rubber weight for
Ultra-Large and Large ORR

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Consolidated Projections for Fiscal 20172016
Results

2017
Projections

VS PY（%）（Ref. Feb 17, 2017
announcement）
2017 Projections

Net Sales

3,337.03,700.0+113,630.0

Tires

2,765.7

3,090.0+123,040.0

585.7

620.0

+6600.0(Yen in billions)

DiversifiedProducts

Operating
Income(Ratio) 13.5%(Ratio) 12.5%(Ratio) (0.9pt)(Ratio) 12.5%

Tires

414.7

428.0

+3417.0

DiversifiedProducts

34.8

35.0+135.0

Ordinary
Income

432.5

439.0

+1433.0

Profit Attributableto Owners of Parent

265.5

289.0

+9280.0

140 yen

140 yen－140 yen

Yen/US dollar rate:

109 yen

111 yen+2 yen110 yen

Yen/Euro rate:

120 yen

122 yen+2 yen114 yenDividends perShare

449.5

464.0

+3452.0

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Analysis of Consolidated Operating Income for Fiscal 2017
(Yen in billions)Price, Mix,
Volume etc.

500+174.4

Raw Materials(126.0)

450

Exchange rate
Sensitivity(full year)

400

350

USD: 3.4bil Yen
EUR: 0.5bil Yen

449.5

300

464.0

SGA(34.0)

Depreciation(8.0)

250

2016
Operating Income+14.4

ForeignExch. Gain+8.0

2017
Operating Income

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Summary
Full Year Revised Projections

Tire sales
Volume●PSR and TBR increase from PY●Ultra-large/Large ORR recover throughout the year

Selling Price/
Raw Material●Raw Material price rise negatively impacted on operating
income against PY●Selling Price increase to compensate increased Raw Materialcosts●Selling Price/Raw Material spread
1H: Negative 2H: Positive FY: remains NegativeSGA●Higher SGA spent for sales promotion activities anddistribution expenses in response to increased sales volume

Consolidated
FinancialResults●Increased Raw Material costs offset by Selling Price increase,
Sales Volume increase, Sales Mix and Cost improvement●Again, better operating income projected over PY
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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 notlimited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate,""may" or "might" and words of similar 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 be included in other materials released to the public. These statements arebased on management's assumptions and beliefs in light of the information currently available to it. Bridgestone cautions you that a number ofimportant risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, andtherefore you should not place undue reliance on them. You also should not rely on any obligation of Bridgestone to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. Bridgestone disclaims any such obligation.
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