Consolidated Financial Statements for the Fiscal Year Ended December 31, 2010
February 18, 2011
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, Osaka, Nagoya, Fukuoka
Code number:5108
URL:http://www.bridgestone.co.jp
Representative: Shoshi Arakawa, Chairman of the Board, CEO and President
Contact:
Takehisa Kichise, Treasurer, General Manager
Telephone:+81-3-3563-6985
Scheduled date of annual shareholders’ meeting:March 29, 2011
Scheduled date of securities report submission:
March 29, 2011
Scheduled date of dividend payment commencement:
March 30, 2011
(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for Fiscal 2010
(January 1, 2010 - December 31, 2010)(1) Consolidated Operating Results(Percentage figures represent changes from the same period of previous year)

Net sales

Operating income

Ordinary income

Net income

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

2,861,615
2,597,002

10.2(19.7)

166,450
75,711119.8(42.4)

147,905
54,457171.6(26.9)

98,913
1,043－(90.0)

Fiscal 2010
Fiscal 2009

Net income
per share

Diluted net income
per share
Yen

Fiscal 2010
126.19Fiscal 2009
1.33
(Reference) Equity in earnings of affiliates:

Net return on Total
equityOrdinary income/ Total assets

Operating income
margin

Yen

%

%

%

126.16
1.33
Fiscal 2010
Fiscal 20098.9
0.1
¥1,476 million¥1,151 million

5.4
2.0

5.8
2.9

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

2,706,639
2,808,439

1,176,147
1,120,797
Fiscal 2010
Fiscal 2009

42.2
38.7

1,458.01
1,385.43

Fiscal 2010
Fiscal 2009
(Reference) Total equity¥1,141,128 million¥1,086,601 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

247,736
338,681(170,556)(188,256)(82,528)(33,610)

216,924
236,270

Fiscal 2010
Fiscal 2009

2. Dividends
1stquarterend

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

Yen

Fiscal 2009
Fiscal 2010
Fiscal 2011
(Projection)

Yen

Yen

Total

Dividends
Pay-out
ratio(Consolidated)

Total
dividends

Ratio ofdividends
to total equity(Consolidated)

Yen

Yen

Yen in millions

%

%

－
－

8.00
10.00

－
－

8.00
10.00

16.00
20.00

12,54815,6701,203.0
15.8

1.2
1.4

－

10.00

－

10.00

20.00

19.1

3. Consolidated Projected Results for Fiscal 2011 (January 1, 2011 - December 31, 2011)(Percentage figures represent changes from the same period of previous year)
Net income
Ordinary income
Net income
per share

Net salesFirst half year
Fiscal 2011

Operating income

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

1,470,000
3,180,000

6.1
11.1

45,000140,000(42.6)(15.9)

37,000124,000(45.6)(16.2)

23,00082,000(48.3)(17.1)

29.39
104.771

4. Others(1) Significant changes in subsidiaries during period(changes in specified subsidiaries involving change in consolidation scope): No(2) Changes in accounting principles, procedures, method of presentation associated with preparation of theconsolidated financial statements (matters to be included in the section, Changes in basic important mattersfor preparation of consolidated financial statements)
1) Changes due to revisions of accounting standards etc. : Yes
2) Changes other than 1): No(Note) For details, refer to “Changes in accounting principles” on page 24.
(3) Outstanding number of shares (common stock)
1) Outstanding number of shares at term end (including treasury stock):
December 31, 2010
813,102,321 shares
December 31, 2009
813,102,321 shares
2) Number of shares of treasury stock at term end
December 31, 2010
30,439,281 shares
December 31, 2009
28,797,299 shares(Note)Refer to “Per share information", on page 35, for number of shares that is basis for calculating net
income per share.
(Reference) Summary of Non-consolidated Results(January 1, 2010 - December 31, 2010)(1) Non-consolidated Operating Results
Net sales(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%

895,623749,21519.5(26.0)

58,49012,054385.2(77.6)

67,441
22,867194.9(60.5)

50,331
15,412226.6(58.0)

Fiscal 2010
Fiscal 2009

Net income
per share
Fiscal 2010
Fiscal 2009

Diluted net income
per share
Yen

Yen

64.21
19.65

64.19
19.65

(2) Non-consolidated Financial Position
Total assets
Fiscal 2010
Fiscal 2009
(Reference) Total equity

Net assets

Ratio of total equity tototal assets

Total equity per share

Yen in millions

Yen in millions%

Yen

1,664,467
1,666,668

1,143,880
1,114,695
Fiscal 2010
Fiscal 2009

68.7
66.9

1,460.86
1,420.82¥1,143,365 million¥1,114,359 million* Statement regarding appropriate use of forward-looking statements and other notes
1. 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
performance and results to differ substantially from management’s projections and plans. For further details,
please see page 6, “Projections for fiscal 2011.”
2. Information about Bridgestone Corporation (the “Company”) and certain of its subsidiaries’ alleged cartel
activities regarding the sale of marine hoses and improper monetary payments is included on page 12-13,“3.Management Policies, (2) Management Strategies and Tasks” and page 25, “4.Consolidated Financial
Statements, Additional information”

2Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

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 2010]
1) Sales and earnings
Fiscal 2010

Increase(Decrease)

Fiscal 2009

Yen in billions

Yen in billions

Yen in billions%

2,861.6

2,597.0

264.6

10Operating income

166.4

75.7

90.7

120

Ordinary income

147.9

54.4

93.4

172

Net income

98.9

1.0

97.8

－

Net sales

In fiscal 2010, the Companies’ operating environment was plagued by rising raw materials and materials prices
and the appreciating Japanese yen. Despite these challenges, the domestic economy showed signs of slightrecovery. Due in part to the effects of government economic stimulus measures, the United States is gradually
recovering, and the business climate in Europe showed signs of slight recovery. In Asia, the rate of recovery
continued to accelerate throughout all regions, particularly in China.
Under these operating conditions, the Companies continued working to achieve the goal of becoming theworld’s undisputed No. 1 tire and rubber company both in name and reality. Stepping up their efforts on a global
basis, the Companies focused on increasing sales of highly competitive products, strengthening supply capacity,
improving manufacturing productivity, enhancing technology and effectively utilizing their management resources.
Moreover, within an operating environment that is evolving at an unprecedented speed, including the changing
structures for demand and competition, the Companies have been striving to rapidly implement a range ofinitiatives to enhance their ability in ways such as responding quickly to market trends, increasing sales ofstrategic products, constructing and enhancing a business model that will extend beyond the mere sale ofproducts, and developing eco-friendly products and businesses.
As a result, net sales, operating income and ordinary income totaled ¥2,861.6 billion, ¥166.4 billion and ¥147.9
billion, an increase of 10%, 120% and 172% from fiscal 2009, respectively. Net income was ¥98.9 billion, while itwas ¥1.0 billion during fiscal 2009.
Further, in the previous fiscal year, the Companies recognized as an extraordinary loss the plant restructuringcosts in Oceania of ¥10.6 billion.

3

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

2) Segment Information(Note) The amounts for segment results include inter-segment transactions that are eliminated in calculating
the consolidated results.
a) By business segment
Fiscal 2010
Yen in billions

Yen in billions

Yen in billions

Net Sales
Tires
Diversified
Products
Consolidated
Results

Increase(Decrease)

Fiscal 2009%

2,379.5

2,152.9

226.6

11

Operating income

153.1

75.2

77.9

104

Net Sales

494.6

454.1

40.5

9

Operating income

13.3

0.4

12.8

－

2,861.6

2,597.0

264.6

10

166.4

75.7

90.7

120

Net Sales
Operating income

In the tire segment, the Companies worked to maximize their sales momentum by introducing appealing new
products worldwide, particularly those that have been identified as strategic and important to the Companies’
future growth.
In Japan, unit sales of tires increased greatly over fiscal 2009 due to the recovery in demand. In the Americas,
the unit sales of passenger cars, light trucks, trucks and buses in North America tire operations exceeded greatly
those of fiscal 2009 due to the recovery in demand. There was a great increase from 2009 in unit sales of suchstrategic products as UHP (ultra-high-performance) tires in the replacement sector. In Europe, unit sales of tires
for passenger cars, light trucks, trucks and buses increased greatly over fiscal 2009 due to the recovery indemand, and unit sales of strategic products, led by runflat tires, UHP tires and winter tires, grew significantly
over fiscal 2009 in the replacement sector. In the specialty tire business, unit sales of large and ultralarge
off-the-road radial tires for construction and mining vehicles significantly exceeded those of fiscal 2009. As aresult, net sales and operating income in the tire segment in fiscal 2010 totaled ¥2,379.5 billion and ¥153.1 billon,
an increase of 11% and 104% from fiscal 2009, respectively.
In the diversified products segment, due to the recovery in demand, net sales totaled ¥494.6 billion, an
increase of 9% from fiscal 2009. Operating income was ¥13.3 billion, while it was ¥0.4 billion during fiscal 2009.

4

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010b) By geographic segment
Fiscal 2010
Yen in billions

Yen in billions

Yen in billions%

1,154.6

1,011.9

142.6

14

61.6

14.3

47.2

328

1,223.9

1,132.8

91.0

8Operating income

48.3

34.4

13.8

40

Net Sales

383.8

362.5

21.3

6

7.1

(11.9)

19.0－

Net Sales

611.9

511.5

100.4

20

Operating income

44.9

32.9

12.0

37

2,861.6

2,597.0

264.6

10

166.4

75.7

90.7

120

Net SalesJapan

The Americas

EuropeOperating income
Net Sales

Operating income (loss)
Other
Consolidated
Results

Increase(Decrease)

Fiscal 2009

Net Sales
Operating income

In Japan, sales in both the tire segment and the diversified products segment exceeded those of fiscal 2009.
As a result, net sales and operating income totaled ¥1,154.6 billion and ¥61.6 billion, an increase of 14% and328%, respectively, from fiscal 2009.
In the Americas, net sales and operating income totaled ¥1,223.9 billion ¥48.3 billion, an increase of 8% and40%, respectively, from fiscal 2009.
In Europe, net sales totaled ¥383.8 billion, an increase of 6% from fiscal 2009, and operating income was ¥7.1
billion, while operating loss was ¥11.9 billion during fiscal 2009.
In other regions, net sales totaled ¥611.9 billion and operating income was ¥44.9 billion, an increase of 20%
and 37%, respectively, from fiscal 2009.

5

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

[Projections for fiscal 2011]
In 2011, although a moderate recovery has become apparent, the Companies will likely experiencechallenging conditions because of the continuing economic uncertainties and the rising prices of raw materials
and materials. In addition, the Group is expected to face rapid changes in the structures of demand andcompetition worldwide.
Despite such a challenging business environment, management predicts that unit sales of tires in Japan will
increase over the previous year. In the diversified products segment, sales are forecasted to increase over 2010.
In the Americas, management anticipates that unit sales of tires in the North American tire business will
increase over the previous year, and in Europe it also forecasts that unit sales of tires will increase over 2010.
The Companies’ projections of overall results are as follows.
Fiscal 2011
projections

Full-year

Increase(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,470.0

1,385.9

84.0

6Operating income

45.0

78.4

(33.4)(43)

Ordinary income

37.0

67.9

(30.9)(46)

Net income

23.0

44.5

(21.5)(48)

Net sales

3,180.0

2,861.6

318.3

11

Operating income

140.0

166.4

(26.4)(16)

Ordinary income

124.0

147.9

(23.9)(16)

Net income

82.0

98.9

(16.9)

(17)

Yen

Yen

yen/dollar

82

91

yen/euro

110

121

yen/dollar

84

88

(5)

yen/euro

110

116

(5)

Net salesFirst half

Fiscal 2010

First half
Exchangerate
Full-year

(10)
－

(9)

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 Companies’ actual performance andresults to differ substantially from management’s projections and plans.

6

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(2) Analysis of Financial Position
1) Cash flow

Fiscal 2010

Increase(Decrease)

Fiscal 2009

Yen in billions

Yen in billions

Yen in billions

Net cash provided by operating activities

247.7

338.6

(90.9)Net cash used in investing activities(170.5)(188.2)17.7

Net cash used in financing activities(82.5)(33.6)(48.9)(13.9)

5.3(19.3)(19.3)

122.1(141.5)

At beginning of year

236.2

114.0

122.1

At end of year

216.9

236.2

(19.3)

Effect of exchange rate changes
on cash and cash equivalents
Net increase (decrease)in cash and cash equivalents
Cash and cash
equivalents

The Companies’ cash and cash equivalents decreased ¥19.3 billion during 2010, to ¥216.9 billion, comparedwith an increase of ¥122.1 billion during the prior year.
(Cash flow by operating activities)
Net cash provided by operating activities decreased ¥90.9 billion during 2010, compared with the prioryear, to ¥247.7 billion. The principal contributors in that cash provided included income before income taxes
and minority interests of ¥141.6 billion, compared with ¥35.3 billion during the prior year; depreciation andamortization of ¥170.6 billion, compared with ¥180.5 billion during the prior year. These contributors offset
income taxes paid of ¥22.4 billion, compared with ¥19.7 billion in the prior year.
(Cash flow by investing activities)
Net cash used in investing activities decreased ¥17.7 billion compared with the prior year, to ¥170.5 billion.
Expenditures included payments of ¥177.9 billion for purchase of tangible assets, compared with paymentsof ¥191.2 billion during the prior year.
(Cash flow by financing activities)
Net cash used in financing activities increased ¥48.9 billion compared with the prior year, to ¥82.5 billion.
The major contributor was payments for redemption of bonds of ¥74.6 billion, compared with ¥18.5 billion
during the prior year.

7

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

2) Trends in cash flow indicators

Fiscal 2008

Fiscal 2009

Fiscal 2010

Ratio of total equity to total assets (%)

35.8

38.7

42.2

Total equity ratio on market value basis (%)

37.6

45.4

45.4

Interest-bearing debt / cash flow ratio(years)

7.1

2.3

2.7

Interest coverage ratio

3.2

13.4

12.7

(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 / net cash provided by operating activities
Interest coverage ratio : Net cash provided by operating activities / 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 net cash provided by operating activities, the figure for net cash provided by operating activities
in the consolidated statements of 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.

8

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(3) Basic policy for the appropriation of profits and dividends for the fiscal 2010 and 2011
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. The Company’s basic aim is to continue paying stable dividends and meet the
expectations of shareholders, in light of overall considerations of business results and financial position in the fiscal
period under review and in the future.
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 and overseas.
For the fiscal 2010, the Company plans to pay a cash dividend of ¥20 per share, comprising a year-end cash
dividend of ¥10 per share and an interim cash dividend of ¥10 per share.
For the fiscal 2011, the Company plans to pay a cash dividend of ¥20 per share, comprising a year-end cash
dividend of ¥10 per share and an interim cash dividend of ¥10 per share.
(4) Business and other risks
Inclusion has been omitted because there has been no significant change to the “Business and other risks”
included in the Company’s most recent securities report (“Yuka Shoken Hokokusho,” filed on March 30, 2010).

9Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart
AS OF DECEMBER 31, 2010
Flow of products and services
TIRES
TIRE MANUFACTURING AND SALESTIRE SALESBRIDGESTONE AMERICAS,INC.
BRIDGESTONE EUROPE NV/SA
BRIDGESTONE (CHINA) INVESTMENT CO., LTD.
BRIDGESTONE TAIWAN CO., LTD.
THAI BRIDGESTONE CO., LTD.
BRIDGESTONE TIRE MANUFACTURING(THAILAND) CO., LTD.
P.T. BRIDGESTONE TIRE INDONESIABRIDGESTONE SOUTH AFRICA HOLDINGS(PTY) LTD.
AND OTHERSBRIDGESTONE TIRE SALES KITANIHON CO., LTD.
BRIDGESTONE TIRE SALES KANTO CO., LTD.
BRIDGESTONE TIRE SALES CHUBU CO., LTD.
BRIDGESTONE TIRE SALES KINKISHIKOKU CO., LTD.
BRIDGESTONE TIRE SALES NISHINIHON CO., LTD.
BRIDGESTONE FVS CO., LTD.
BRIDGESTONE ASIA PACIFIC PTE.LTD.
BRIDGESTONE AUSTRALIA LTD.
BRIDGESTONE EARTHMOVER TYRES PTY. LTD.
BRIDGESTONE MIDDLE EAST & AFRICA FZE.
AND OTHERSPRODUCTION AND SALES OF TIRE RAW MATERIALBRIDGESTONE NATURAL RUBBER (THAILAND)
CO., LTD. AND OTHERSBRIDGESTONE CORPORATION

DIVERSIFIED PRODUCTSCHEMICAL AND INDUSTRIAL PRODUCTS

BICYCLESBRIDGESTONE ELASTECH CO., LTD.
BRIDGESTONE CYCLE CO., LTD
BRIDGESTONE DIVERSIFIED CHEMICAL PRODUCTS CO., LTD.
BRIDGESTONE CHEMITECH CO., LTD.
BRIDGESTONE DIVERSIFIED PRODUCTS EAST CO., LTD.
BRIDGESTONE DIVERSIFIED PRODUCTS WEST CO., LTD.
AMERICAS,INC.
AllBRIDGESTONEof the above-mentioned
companies are our consolidated subsidiaries.
OTHERSAND OTHERSAND OTHERSBRIDGESTONE FINANCE CORPORATIONBRIDGESTONE FINANCE EUROPE B.V.
AND OTHERSSPORTING GOODSBRIDGESTONE SPORTS CO., LTD AND OTHERS

All of the above-mentioned companies are our consolidated subsidiaries.

10

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

3. Management Policies(1) Basic Management Policies
Guided by a spirit of “Trust and Pride,” the Bridgestone Group adheres to the “Bridgestone Way” corporate
philosophy, which calls on the Group to realize the mission of “serving society with superior quality.” Based on that
corporate philosophy, the Group will pursue the ultimate goal of the group management, which is “to become theundisputed world No.1 tire and rubber company both in name and reality.” Further, as a responsible global
company, Bridgestone will respect the social culture and values of the various countries in which it conducts
business activities, comply with laws and statutory regulations, protect the global environment, and contribute tosociety.
(2) Management Strategies and Tasks
Seeking “to become the undisputed world No.1 tire and rubber company both in name and reality” as theultimate goal of the group management, the Group will advance all business activities based on an awareness of
its corporate social responsibility. To that end, the Group has adopted a management stance with four components.
First, the Group will always bear in mind business basics and principles. Second, the Group will adhere to thephilosophy and spirit it has maintained since its establishment and uphold the “Bridgestone Way” corporate
philosophy that calls on the Group to realize the mission of “serving society with superior quality.” Third, the Groupwill solidify its business footing in Japan. Last, the Group will rigorously proceed with Group and global businessdevelopment on top of the strong foundation of its Japanese business.
Based on those four components of its management stance, the Group will develop businesses in accordancewith four fundamental management policies: 1. To always aim for “the higher level” and to be the best in the world
in all of our products and services; 2. To clarify the long-term strategy and to proceed with the integration andexpansion of business domains; 3. To aim for the real global corporation, adopting a strategic business unit (SBU)
organization; and 4. To aim for the optimum management of the entire Group, utilizing the Mid-Term Management
Plan.
The Companies face rapid, major structural changes that significantly affect earnings, including changes in thecomposition of demand, new competition, and fluctuations in currency exchange rates and the prices of raw
materials and materials. Against that backdrop, the Companies believe that it will be difficult to achieve sustained,
quality growth solely by pursing external growth in the scale of net sales and its overseas business. The global
economy appears to have shaken off the severe worldwide recession that emerged from the fourth quarter of 2008.
Important issues remain, however, including sovereign risk in Europe and concerns about decelerating growth inemerging countries. Overall, the future course of the global economy remains difficult to predict. In light of suchvolatility in business conditions, the Companies sought to turn change into opportunity with the implementation of
the Lean & Strategic concept. On that basis, we rigorously streamlined our balance sheet.
Further, in our MTP 2010, which was announced in October 2010, we have formulated five items as initiatives for“competing on a different ground.”The first is expansion of strategic tire products and businesses. In passenger tires, including runflat tires, UHP
tires, and winter tires, we will incorporate the Group’s leading-edge technologies and take steps to aggressively
expand sales on a groupwide basis. In truck and bus tire segment, to meet the needs of customers and society forsafety, low fuel consumption, and low cost, we will implement global development of our solutions business utilizing
retread technologies, targeting especially strong growth in emerging markets. In large and ultralarge off-the-roadradial tires for construction and mining vehicles, we will aggressively invest management resources to meetmining-related demand, which remains robust.
The second initiative is reinforcing fundamental competencies, specifically by leveraging vertical integration andoptimizing specifications in order to bolster overall supply chain competitiveness. In vertical integration, we will
enhance tire performance and cost from the raw material level, expand our network of retail outlets, and provide
customers with the optimal products and services on a timely basis. In addition, we will advance initiatives that fully
leverage the Group’s strengths in rapidly responding to market needs. In optimizing specifications, the fundamental
task is meeting the quality demanded by the market. On that basis, we will focus on technical development that
also contributes to the environment, with a focus on achieving enhanced safety and reducing raw material
11Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

consumption (half weight). We will strive to maximize those effects through integrated activities that combine
product development, production technologies, and procurement/internal manufacturing.
The third initiative is to secure our position in the tire business in emerging countries. Centered on China, India,
and Brazil, we will work to establish and expand sales of the ECOPIA brand of eco-friendly tires, to put thesolutions business on a sound footing, and implement sales initiatives, such as bolstering our network of retail
outlets. In addition, in parallel with these sales initiatives, we will increase production in emerging countries.
The fourth initiative is planning based on the principles of selection and concentration in diversified products
business, or non-tire operations. We will work to bolster global development in chemical and industrial products
operations, and we will take steps to expand profits, centered on construction materials and hose/belt operations.
In eco-friendly EVA film for solar modules, we will work to respond rapidly to substantial demand for solar cells by
investing in increased production capacity, and we expect these operations to make a substantial contribution toearnings.
The fifth initiative is to enhance environmental activities and eco-friendly products and businesses. Working
toward the realization of a sustainable society that is reducing carbon emissions, resource conservation andecological conservation, we will set challenging goals and work toward further progress in environmental
countermeasures. Specifically, we have already established numerical objectives, such as targets for CO2
emission reductions, with consideration for such factors as the social and operating environments. By incorporatingthese into plans for individual eco-friendly products and operations, we have a framework for the achievement ofthese goals.
These five items comprise our initiatives for “competing on a different ground.” They were formulated inaccordance with our four fundamental management policies. The Group believes that in order to realize a basic
system for implementing those strategies and measures, it must optimize organizational systems on a Group andglobal basis and undertake a mid-term management plan that is consistent for the Group as a whole. Therefore,
the Group will continue to strengthen those aspects of its operations.
As an organizational systems initiative, the Group will gain an accurate understanding of market and customer
needs in regions worldwide. Based on that understanding, the Group will evolve and further increase theeffectiveness of the SBU system, which was introduced to reflect such needs optimally and rapidly on a Group andglobal basis. Further, in order to prevail and survive amid tough business conditions, it is critical for the Group to
exploit its wide-ranging and diverse management resources to the utmost and in accordance with consistenttargets and plans. To realize those objectives, the Group will revise the mid-term management plan on an annual
rolling basis, extending it by one year at a time. Those revisions will enable the Group to respond accurately andrapidly to dramatically fluctuating business conditions as it seeks to maintain earnings levels. In other words, theGroup will move forward vigorously to build a corporate organization that steadily increases profitability.
In addition, the Group will step up efforts to build systems that will enable the realization of its responsibilities as
a company toward all of its stakeholders. The Group will conduct regular yearly reviews of its policy for thedevelopment of internal control systems that ensure appropriate operations, which a resolution of the Board of
Directors approved in May 2006. Moreover, the Group will undertake reviews of that policy as needed and steadily
develop systems in accordance with the policy. For corporate governance systems, the Group will take further
steps to ensure that the Company’s decision making consistently follows fair and transparent rules. Centering on
the Integrated CSR Enhancement Committee, the Group’s 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; internal control
improvement; employee education; and corporate citizenship activities.
Since May 2007, the U.S. Department of Justice, the European Commission, the Fair Trade Commission ofJapan, and other authorities have been investigating the Company and certain of its subsidiaries in connection withalleged international cartel activities regarding the sale of marine hoses. In February 2008, the Company received
orders from the Fair Trade Commission of Japan. The orders, which directed the Company to cease and desist
from violating the Antimonopoly Act and to pay surcharges for violating the Act, were finalized. Moreover, inJanuary 2009, the Company was notified by the European Commission of its decision to impose a fine for alleged
involvement in an international cartel related to the sale of marine hoses. After careful consideration, the Company
has determined that bringing the course of proceedings to an end and subsequently focusing on the reinforcementof its compliance system and the promotion of preventive measures are the appropriate actions to take. Therefore,
the Company decided not to appeal to the Court of First Instance of European Commission and has paid the12Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

imposed fine. The investigation by the U.S. Department of Justice is continuing. However, proceedings in the othercountries which have investigated have already been finalized.
Further, aside from the abovementioned issue, the Company uncovered the fact that there have been incidents
of improper monetary payments to foreign agents, a part of which may have been provided to foreign governmental
officers, and other possible forms of improper payments. The Company has been able to confirm that inappropriate
payments have been identified in connection with the sale of marine hoses and other industrial products. The
Company has submitted the findings of the internal inquiry regarding those incidents of improper monetary
payments and other possible forms of improper payments to the Japanese Public Prosecutors Office and the U.S.
Department of Justice. The Company plans to continue reporting the findings of inquiries as appropriate.
The Group has taken these issues seriously, and the Group has implemented measures to prevent recurrence,
including a withdrawal from the marine hose business, the strengthening of training to ensure all Group employees
view compliance as a serious issue pertaining directly to themselves, the strengthening of measures against
improper acts, and the tightening of internal controls which contains the corporate-wide organizational change, andstrengthening of management auditing framework, and others.

13

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
Previous Year(As of December 31, 2009)

Current Year(As of December 31, 2010)

AssetsCurrent Assets
Cash and deposits

158,605

185,334

Notes and accounts receivable

483,960

426,935

Short-term investments

83,915113,228

Merchandise and finished products

271,935

253,908

Work in process

30,21431,362

Raw materials and supplies

133,134

142,314

Deferred tax assets

58,55861,487

Other

72,552

72,281

Allowance for doubtful accounts(18,419)(9,884)

Total Current Assets(Note2)

1,274,457(Note2)

1,276,968

Fixed Assets
Tangible assets
Buildings and structures, net

358,029

341,190

Machinery, equipment and vehicles, net

422,175

378,430Land

150,267

147,094

Construction in progress

86,13389,555

Other, net

59,99650,353

Total tangible assets(Note1)Intangible assets

1,076,601(Note1)

38,654

1,006,624
31,061

Investments and other assets
Investments in securities(Note3)Long-term loans receivable

214,396(Note3)

217,340

9,096

6,753

Deferred tax assets

134,306

103,201

Other

61,672

66,277

Allowance for doubtful accounts(746)(1,588)

Total investments and other assets

418,726

391,984

Total Fixed Assets(Note2)

Total

1,533,981
2,808,439

14(Note2)

1,429,671
2,706,639

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Yen in millions)
Previous Year(As of December 31, 2009)

Current Year(As of December 31, 2010)

Liabilities
Current Liabilities
Notes and accounts payable

165,289

188,150

Short-term borrowings

169,081

297,176

Commercial paper

1,914

20,608Current portion of bonds

70,44921,108931

1,035

Income taxes payable

11,29015,113

Deferred tax liabilities

1,197

902

－

3,693

Accounts payable-other135,325

139,333

Accrued expenses

160,225

150,372

Other

46,991

39,558

Total Current Liabilities

762,696877,052

Bonds

138,827

125,975

Long-term borrowings

399,916

191,373

Lease obligations

5,206

5,888

Deferred tax liabilities
Accrued pension and liability for retirement
benefits
Warranty reserve

37,33438,999284,758

237,194

18,192

17,039Provision for environmental remediation

3,921

4,780

－

1,367

Other

36,78830,823

Total Long-term Liabilities

924,945

653,440

1,687,641

1,530,492

Common stock

126,354

126,354

Capital surplus

122,647

122,629

1,006,859

1,111,588(54,847)(57,245)

Total Shareholders’ equity
Net unrealized gain(loss) and translation
adjustments
Net unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative instruments

1,201,013

1,303,326

100,696

112,064

(844)

(235)

Foreign currency translation adjustments
Total Net unrealized gain(loss) andtranslation adjustments(214,263)(274,026)(114,411)(162,197)

336

514

Minority Interests

33,85934,503

Total Net Assets

1,120,797

1,176,147

Total

2,808,439

2,706,639

Lease obligations

Provision for sales returns

Long-term Liabilities

Provision for recall of merchandise

Total Liabilities
Net Assets
Shareholders' equity

Retained earnings
Treasury stock-at cost

Stock acquisition rights

15

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(2) Consolidated Statements of Income(Yen in millions)
Previous Year
(Year ended December 31, 2009)

Current Year
(Year ended December 31, 2010)

Net Sales

2,597,002

2,861,615

Cost of Sales

1,766,950

1,936,309

Gross profit

830,052

925,306

Goods freightage expenses

117,771

128,331

Advertising and promotion expenses

95,69496,886

Salaries, allowances and bonuses

188,022

190,031Retirement benefit expenses

20,914

18,391

Depreciation

25,352

23,850

Selling, General and Administrative Expenses

Research and development expenses(Note1)85,766(Note1)

85,153

Other

220,818

216,210

Total selling, general and administrative expenses

754,340

758,856

Operating income

75,711

166,450

Interest income

2,907

3,504

Dividend income

3,209

3,417

－

2,954

Other

20,922

11,717

Total non-operating income

27,03921,594

Interest expense

26,06518,764Foreign currency exchange loss

3,285

4,595

Other

18,943

16,778

Total non-operating expenses

48,294

40,138

Ordinary income

54,457

147,905

4,056

－

4,056

－

Loss on disposals of tangible assets

5,482

4,011

Loss on valuation of investments in securities

3,767

－

Non-operating Income

Gain on sales of tangible assets

Non-operating Expenses

Extraordinary Income
Gain on sales of tangible assets(Note2)

Total extraordinary income
Extraordinary Loss－

Loss on recall of merchandise(Note3)

2,217

Loss on provision for environmental remediation(Note4)

3,278－

Plant restructuring costs in Oceania(Note5)

10,618－

Total extraordinary loss

23,146

6,228

Income before income taxes and minority interests

35,366

141,677

Income taxes - current

21,69332,633

Income taxes - deferred

7,524

3,920

Total income taxes

29,21836,554

Minority Interests

5,104

6,209

Net Income

1,043

98,91316

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(3) Consolidated Statements of Changes in Net Assets(Yen in millions)
Previous Year
(Year ended December 31, 2009)

Current Year
(Year ended December 31, 2010)

Shareholders’ equity
Common stock
Ending Balance of the previous year

126,354

126,354－－

126,354

126,354

122,658

122,647

Disposition of treasury stock

(11)

(17)

Total changes in the year

(11)

(17)

122,647

122,629

1,003,995

1,006,859

136－(14,901)(14,117)

Net income

1,043

98,913

Decreased by retirement benefit obligations

16,585

19,933

Total changes in the year

2,727

104,728

1,006,859

1,111,588(54,891)(54,847)

Purchase of treasury stock(10)(2,475)

Disposition of treasury stock

53

77

Total changes in the year43

(2,398)(54,847)(57,245)

1,198,117

1,201,013

136－(14,901)(14,117)

Net income

1,043

98,913

Decreased by retirement benefits obligations

16,585

19,933Purchase of treasury stock(10)(2,475)

Disposition of treasury stock

42

60

Total changes in the year

2,759

102,3131,201,013

1,303,326

Changes in the year
Total changes in the year
Ending Balance
Capital surplus
Ending Balance of the previous year
Changes in the year

Ending Balance
Retained earnings
Ending Balance of the previous year
Effect of application for ASBJ Practical
Issues Task Force No .18
Changes in the year
Cash dividends

Ending Balance
Treasury stock-at costEnding Balance of the previous year
Changes in the year

Ending Balance
Total shareholders’ equity
Ending Balance of the previous year
Effect of application for ASBJ Practical
Issues Task Force No .18
Changes in the year
Cash dividends

Ending Balance

17

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Yen in millions)
Previous Year
(Year ended December 31, 2009)

Current Year
(Year ended December 31, 2010)

Net unrealized gain(loss) and translation
adjustments
Net unrealized gain(loss) on available- for-salesecurities
Ending Balance of the previous year

45,455

100,696

Net Change in the year

55,24011,367

Total changes in the year

55,24011,367

100,696

112,064

(838)

(844)

Net Change in the year

(5)

608

Total changes in the year

(5)

608

(844)

(235)

(251,949)(214,263)

Net Change in the year

37,685(59,762)

Total changes in the year

37,685(59,762)(214,263)(274,026)

133

336

Net Change in the year

203

178

Total changes in the year

203

178

336

514

29,07733,859Net Change in the year

4,782

644

Total changes in the year

4,782

644

33,85934,503

Changes in the year

Ending Balance
Deferred gain(loss) on derivative
instruments
Ending Balance of the previous year
Changes in the year

Ending Balance
Foreign currency translation adjustments
Ending Balance of the previous year
Changes in the year

Ending Balance
Stock acquisition rights
Ending Balance of the previous year
Changes in the year

Ending Balance
Minority Interests
Ending Balance of the previous year
Changes in the year

Ending Balance18

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(4) Consolidated Statements of Cash Flows(Yen in millions)
Previous Year
(Year ended December 31, 2009)

Current Year
(Year ended December 31, 2010)

Cash Flows from Operating Activities
Income before income taxes and minority interests

35,366

141,677

Depreciation and amortization

180,546

170,662

1,213(4,951)(3,592)(3,291)－

3,693

Interest and dividend income(6,116)(6,921)

Interest expense

26,06518,764Gain on sales of tangible assets(4,056)－

Loss on disposals of tangible assets

5,482

4,011

Loss(gain) on valuation of investments insecurities

3,767

－

－

2,217

Loss on provision for environmental remediation

3,278

－

Plant restructuring costs in Oceania

10,618－Decrease(increase) in notes and accounts
receivable

7,021(62,457)

Decrease(increase) in inventories

163,667(32,664)

Increase(decrease) in notes and accounts payable(54,163)

42,561

Other

15,914

9,462

Subtotal

385,013282,763

6,161

6,844

Interest paid

(25,365)(19,461)

Payment related to EU competition law case(7,420)－

Income taxes paid

(19,707)(22,410)Net Cash Provided by Operating Activities

338,681247,736(191,240)(177,971)

Proceeds from sales of tangible assets

6,793

4,491

Payments for investments in securities(8,063)(2,002)

Proceeds from investments in securities

4,138

5,921

3,000

－

1,518

2,386

(4,402)(3,382)(188,256)(170,556)

Increase(decrease) in allowance for
doubtful accounts
Increase(decrease) in accrued pension andliability for retirement benefits
Increase(decrease) in provision for sales returns

Loss on recall of merchandiseInterest and dividends received

Cash Flows from Investing Activities
Payments for purchase of tangible assets

Proceeds from redemption of investments insecurities
Proceeds from collection of loans
receivable
Other
Net Cash Used in Investing Activities

19

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Yen in millions)
Previous Year
(Year ended December 31, 2009)

Current Year
(Year ended December 31, 2010)

Cash Flows from Financing Activities
Net increase(decrease) in short-term borrowings(194,141)

21,059Proceeds from long-term borrowings

167,943

14,470

Repayments of long-term borrowings(48,170)(37,432)

Proceeds from issuance of bonds

76,316

13,827

Payments for redemption of bonds(18,572)(74,615)－(2,475)

Cash dividends paid

(14,904)(14,119)

Cash dividends paid to minority(1,240)(2,317)

(840)

(925)

(33,610)(82,528)

5,380(13,996)

122,194(19,345)

114,075

236,270

Payments for purchase of treasury stock

Other
Net 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)

20

236,270(Note1)

216,924

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

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: 340 companies
Names of principal companies:
Refer to “2. BRIDGESTONE Group’s Major Subsidiaries and Business Relation Flowchart”
Changes in scope of consolidation:
Additions: 7 companies (Increased by establishment)
Deletions: 71 companies (Mainly, decreased by merger)(2) There are no non-consolidated subsidiaries
2. Scope of application of equity-method accounting(1) Number of equity-method affiliates: 157 companies
Main equity-method affiliate
BRISA BRIDGESTONE SABANCI LASTIK SANAYI VE TICARET A.S.
Changes in the scope of equity-method accounting
Additions: 2 companies (Mainly, increased by acquisition)
Deletions: 4 companies (Mainly, decreased by liquidation)(2) There are no non-consolidated subsidiaries or affiliates to which equity-method accounting is not applied.
3. Fiscal year of consolidated subsidiaries
Consolidated subsidiary BRIDGESTONE RIHGA,LTD. ends its fiscal year on October 31. Further,
BRIDGESTONE TVS INDIA PRIVATE LTD. ends its fiscal year on March 31. Consolidated results areadjusted as necessary to reflect important transactions taking place between the respective fiscal year-ends ofsubsidiaries and the fiscal year-end of the Bridgestone Group.
4. Accounting standards(1) Valuation standards 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 standards and methods for derivatives
In principle, fair value.
(3) Valuation standards and methods for inventories
Inventories are substantially stated at cost basis determined by the moving-average method andadjustment method of the cost basis to net recoverable value is applied, if lower, while inventories held bysubsidiaries in the Americas are substantially stated at the lower of cost, which is determined principallyby the last-in, first-out method.
(4) Depreciation method for fixed assets
For tangible assets, the declining-balance method is used at domestic subsidiaries, and thestraight-line method is used at overseas subsidiaries.
For intangible assets, the straight-line method is used.
(5) Accounting standards 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.
21

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010b) Provision for sales returns
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.
(Additional information)
Previously, losses on returned snow tires were subtracted from sales in the period in which thereturns occurred. However, following the integration of domestic tire sales companies, historical data
has been accumulated and the accuracy of analyses has increased, making it possible to rationallycalculate the return rate. Accordingly, the amount of future return-related losses is estimated based on
the historical return rate, and that amount is recorded as provision for sales returns.
Consequently, in comparison with the previous method, the use of the new method has resulted in adecrease of ¥3,693 million in each of gross profit, operating income, ordinary income, and income
before income taxes and minority interests.
c) Accrued pension and liability for retirement benefits
In order to reserve for retirement benefits for employees, an amount based on the estimated amountof projected benefit obligations and pension plan assets as of the fiscal year end is recorded.
Transitional obligation is treated as an expense using the straight-line method over 10 years. Prior
service cost is treated as an expense using the straight-line method over a fixed number of years
based on the average remaining years of service in the year in which they occur (10 years for domestic
companies, 3 to 12 years for overseas companies).
Actuarial gain/loss at domestic companies is treated as an expense using the straight-line method
over a fixed number of years (10 years) based on the average remaining years of service in the year inwhich they occur, recorded from the following year. For certain overseas subsidiaries, unrecognizedactuarial 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 (7 to 12 years) based on the average remaining years of service.
In addition, at certain consolidated subsidiaries in the Americas, an estimated total amount ofexpenses for post-retirement benefits in addition to pensions is allotted based on the number of yearsof service provided by the employee.
At certain overseas subsidiaries, unrecognized amounts of actuarial gain/loss not yet treated as
expenses are recorded on the balance sheet.
d) 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.
e) Provision for environmental remediation
In order to reserve for outlays for legally required removal and disposal of asbestos, etc., an
estimated amount of future obligations is recorded.
f ) Provision for recall of merchandise
In order to reserve for outlays for recall of merchandise, an estimated amount is recorded in thebicycle business.
(6) Standards 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.

22

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010(7) 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 methods and items covered
MethodForward 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.
(8) 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.
(9) Other significant items related to the preparation of consolidated financial statements
Accounting treatment of consumption tax, etc.
Consumption tax and local consumption taxes are excluded.
5. Valuation of assets and liabilities at consolidated subsidiaries
Assets and liabilities at consolidated subsidiaries are all presented using the fair value method.
6. Definition of cash and cash equivalents for Consolidated Statements 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 is deemed
negligible.

23

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

Changes in accounting principles
1. Adoption of the “Accounting Standard for Business Combinations”
Starting from the current fiscal year, the Companies adopt the “Accounting Standard for Business
Combinations” (ASBJ Statement No.21 of December 26, 2008), the “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No.22 of December 26, 2008), the partial amendments to the“Accounting Standard for Research and Development Costs” (ASBJ Statement No.23 of December 26, 2008),
the “Accounting Standard for Business Divestitures” (ASBJ Statement No.7 of December 26, 2008) the“Accounting Standard for the Equity Method of Accounting for Investments” (ASBJ Statement No.16; partissued on December 26, 2008), and the “Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures” (ASBJ Guidance No.10 of December 26, 2008).

2. Adoption of the “Partial Amendments to Accounting Standard for Retirement Benefits (Part 3)”
Starting from the current fiscal year, the Companies adopt the “Partial Amendments to Accounting Standard
for Retirement Benefits (Part 3)” (ASBJ Statement No.19 of July 31, 2008). Amortization of the actuarial gains
and losses will begin in fiscal 2011, and this adoption has no impact on operating income, ordinary income andincome before income taxes and minority interests in fiscal 2010. Further, the impact of this adoption on
retirement benefit obligations is not material.

24

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

Additional Information
Information about Bridgestone Corporation and certain of its subsidiaries’ alleged cartel activities regarding
the sale of marine hoses and improper monetary payments
Since May 2007, the U.S. Department of Justice, the European Commission, the Fair Trade Commission ofJapan, and other authorities have been investigating the Company and certain of its subsidiaries in connection
with alleged international cartel activities regarding the sale of marine hoses. In February 2008, the Company
received orders from the Fair Trade Commission of Japan. The orders, which directed the Company to ceaseand desist from violating the Antimonopoly Act and to pay surcharges for violating the Act, were finalized.
Moreover, in January 2009, the Company was notified by the European Commission of its decision to impose
a fine of €58.5 million for alleged involvement in an international cartel related to the sale of marine hoses.
After careful consideration, the Company has determined that bringing the course of proceedings to an end
and subsequently focusing on the reinforcement of its compliance system and the promotion of preventive
measures are the appropriate actions to take. Therefore, the Company decided not to appeal to the Court ofFirst Instance of European Commission and has paid the imposed fine. Regarding this matter, the Company
has recorded ¥7,485 million as an expense related to the European Commission fine in the fiscal year ended
December 31, 2008. In regard to the class action lawsuit brought in the United States in connection with themarine hose cartel, a final approval of proposed settlements was granted by the Court. Further, the Company
has handled other individual civil claims in an appropriate manner. The investigation by the U.S. Department ofJustice is continuing. In the future, there is a possibility that fines will be imposed by the U.S. Department ofJustice, but at this point, there are a number of uncertain factors regarding the calculation of a specific reserve,
and as a result expenses have not been recorded. Proceedings in the other countries which have investigatedhave already been finalized.
Further, aside from the above-mentioned issue, the Company uncovered the fact that there have been
incidents of improper monetary payments to foreign agents, a part of which may have been provided to foreign
governmental officials, and other possible forms of improper payments. The Company has been able toconfirm that inappropriate payments have been identified in connection with the sale of marine hoses andother industrial products. The Company has reported the findings of its internal inquiries to the Japanese
Public Prosecutors Office and the U.S. Department of Justice. The impact that these incidents may have on
financial results is unclear at this time25

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

Notes
(Consolidated Balance Sheet)Previous Year(As of December 31, 2009)
Note 1

Current Year(As of December 31, 2010)

Accumulated depreciation of tangible assets

Note 1

Accumulated depreciation of tangible assets¥1,819,506 million

Note 2

Assets pledged as collateral¥9,049 million(Obligations corresponding to the preceding¥1,855,649 million

Note 2

Assets pledged as collateral¥8,871 million(Obligations corresponding to the preceding

Short-term bank borrowings¥1,570 million

Short-term bank borrowings¥1,654 million

Long-term bank borrowings¥186 million)

Long-term bank borrowings¥295 million)

Note 3

Assets or liabilities related to non-consolidated
subsidiaries and affiliates
Investments in securities¥15,539 million

Note 3

Assets or liabilities related to non-consolidated
subsidiaries and affiliates
Investments in securities¥14,362 million

4

Guarantees
Guarantees on employees' bank borrowings, etc.
¥221 million
Balance of trade notes discounted¥1,584 million

4

Guarantees
Guarantees on employees' bank borrowings, etc.
¥196 million
Balance of trade notes discounted¥1,387 million

5

5

26

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Consolidated Statements of Income)Previous Year
(Year ended December 31, 2009)
Note 1

Current Year
(Year ended December 31, 2010)
Note 1

Research and development expenses
General and administrative expenses¥85,766 million

Note 2

Research and development expenses
General and administrative expenses¥85,153 million

Gain on sales of tangible assets
Gain on sales of tangible assets mainly
consists of gain on sales of land.

－

Note 3－

Loss on recall of merchandise
In the bicycle business, an estimated amount ofoutlays for recall of merchandise is recorded.

Note 4

Loss on provision for environmental
remediation
The Companies have increased theprovision for environmental remediation in
preparation for rising cost of waste disposal
based on related legal requirements.

Note 5

Plant restructuring costs in Oceania－－

Some of the Company’s overseas
subsidiaries in Oceania record costs of theirplant closures as a part of tire manufacturing
rationalization.

27

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Consolidated Statements of Changes in Net Assets)
Previous Year（Year ended 31 December 2009)
1. Type and total number of shares issued / Type and number of treasury stock
As of
Increase
Decrease
December 31,
2008
Number of shares issued
Common stock(Thousands of shares)

As of
December 31,
2009813,102－－

813,10228,8186

28

28,797

Treasury stock
Common stock(Thousands of shares)(see notes 1 & 2)
Notes 1:

The increase of treasury stock consists of the purchase of 6 thousand shares according to the requests fromthe shareholders who have odd-lot shares.
2: The decrease of treasury stock consists of 27 thousand shares used for the exercise of stock options, 1
thousand shares for sales according to the requests from the shareholders who have odd-lot shares.

2. Stock acquisition rights

DetailsStockacquisitionrights as
stock
options

Filingcompany

Type of shares
to be used asstockacquisitionrightsNumber of shares to be used for Stock acquisition rights
As ofDecember31, 2008

Increase

As ofDecember31, 2009

Decrease

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

－

－

－

－

－

336

－

－

－

－

－

336

Resolution

Type

Total dividends(yen in millions)

Annual Shareholders’Meeting, March 26,
2009

Common StockBoard of Directors,
August 7, 2009

Common Stock

Total

3. Dividends(1) Dividend payments
Dividend per
share

Record date

Effective date

8,627

¥11

December 31,
2008

March 27,
2009

6,274

¥8

June 30,2009

September 1,
2009(2) Dividends whose record date is in the current year and effective date is in the following fiscal year
Total
Dividend per
SourceRecord date
Resolution
Type
dividends
share

Effective date( yen in millions )Annual Shareholders’Meeting , March 30,
2010

CommonStockRetainedearnings

6,274

28

¥8

December 31,
2009

March 31,2010

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

Current Year（Year ended 31 December 2010)
1. Type and total number of shares issued / Type and number of treasury stock
As of
December 31,
Increase
Decrease
2009
Number of shares issued
Common stock(Thousands of shares)

As of
December 31,
2010

813,102－－

813,102

28,7971,682

40

30,439Treasury stock
Common stock(Thousands of shares)(see notes 1 & 2)
Notes 1:

The increase of treasury stock consists of the purchase of 1,674 thousand shares according to the requests
from the shareholders due to the Company’s merger with its subsidiary and the purchase of 7 thousand
shares according to the requests from the shareholders who have odd-lot shares.
2: The decrease of treasury stock consists of 40 thousand shares used for the exercise of stock options.

2. Stock acquisition rights

DetailsStockacquisitionrights as
stock
options

Filingcompany

Type of shares
to be used asstockacquisitionrightsNumber of shares to be used for Stock acquisition rights
As ofDecember31, 2009

Increase

As ofDecember31, 2010

Decrease

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

－

－

－

－

－

514

－

－

－

－

－

514

Resolution

Type

Total dividends(yen in millions)

Annual Shareholders’Meeting, March 30,
2010

Common StockBoard of Directors,
August 6, 2010

Common Stock

Total

3. Dividends(1) Dividend payments
Dividend per
share

Record date

Effective date

6,274

¥8

December 31,
2009

March 31,
2010

7,843

¥10

June 30,2010

September 1,
2010(2) Dividends whose record date is in the current year and effective date is in the following fiscal year
Total
Dividend per
SourceResolution
Type
Record datedividends
share

Effective date( yen in millions )Annual Shareholders’Meeting , March 29,
2011

CommonStockRetainedearnings

7,826

29

¥10

December 31,
2010

March 30,2011

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Consolidated Statements of Cash Flows)
Previous Year
(Year ended December 31, 2009)
Note 1

Current Year
(Year ended December 31, 2010)

Relationship between cash and cash
equivalents at fiscal year end and amountshown in Consolidated Balance Sheet

Note 1

Relationship between cash and cash
equivalents at fiscal year end and amountshown in Consolidated Balance Sheet(As of December 31, 2009)(As of December 31, 2010)

Yen in millions

Yen in millions

Cash and deposits

158,605

Cash and deposits

185,334

Short-term investments

83,915

Short-term investments

113,228

Current Assets – other (money
held in trust)

Current Assets – other (money
held in trust)

－

5,500

Total

242,520

Total

304,062

Time deposits, bonds, etc. withterms of more than three months(6,250)Time deposits, bonds, etc. withterms of more than three months(87,138)

Cash and cash equivalents

236,270

Cash and cash equivalents

216,92430

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Segment Information)(1) Information by business segment
Previous Year (Year ended December 31, 2009)(Yen in millions)
Diversified
Products

Tires

Elimination or
Corporate

Total

Consolidated

Net sales:
External customers－

2,151,314

445,6872,597,002

2,597,002

Inter-segment

1,651

8,487

10,139(10,139)－

Total

2,152,965

454,175

2,607,141(10,139)2,597,002

Operating expenses

2,077,760

453,7092,531,470(10,179)

2,521,290

Operating income

75,204466

75,67140

75,711

Identifiable assets

2,417,504

393,634

2,811,138(2,699)2,808,439

Depreciation andamortization

156,921

23,624

180,546－

180,546

Capital expenditures

159,675

21,706

181,382－

181,382

Current Year (Year ended December 31, 2010)(Yen in millions)
Diversified
Products

Tires

Elimination or
Corporate

Total

Consolidated

Net sales:
External customers－

2,377,305

484,310

2,861,615

Inter-segment

2,267

10,376

12,644(12,644)－

Total

2,379,572

494,6872,874,259(12,644)2,861,615

Operating expenses

2,226,443

481,322

2,707,765(12,600)

2,695,165

Operating income

153,129

13,364

166,494(44)

166,450

Identifiable assets

2,321,573

388,061

2,709,634(2,994)

2,706,639

Depreciation andamortization

148,694

21,968

170,662－

170,662

Capital expenditures

159,972

22,860182,833－

182,833

Notes:

2,861,615

1 Business segment classifications are those used in internal administration.
2 The major products and business of each business segment are as follows:
Tires: Tires and tubes, wheels and accessories, retread material and services, auto maintenance, etc.
Diversified products: Chemical products, industrial products, sporting goods, bicycles, etc.

31

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010(2) Information by geographic segment
Previous Year (Year ended December 31, 2009)
Japan(Yen in millions)

The
Americas

Europe

Other

Total

EliminationorCorporate

Consolidated

Net sales:
External customers

680,346

1,123,670

359,657

433,328

2,597,002－

2,597,002

Inter-segment

331,605

9,192

2,907

78,258421,964(421,964)

－

Total

1,011,952

1,132,863

362,564

511,586

3,018,966(421,964)

2,597,002

Operating expenses

997,553

1,098,367

374,525

478,680

2,949,127(427,837)

2,521,290

Operating income (loss)

14,39834,496(11,961)

32,90569,8385,872

75,711

1,216,397

862,590

443,480

479,525

3,001,994(193,554)

2,808,439

Identifiable assets(Yen in millions)

Current Year (Year ended December 31, 2010)
Japan

The
Americas

Europe

Other

Total

EliminationorCorporate

Consolidated

Net sales:－

External customers

755,647

1,212,796

380,872

512,298

2,861,615

Inter-segment

398,991

11,145

3,010

99,692512,840(512,840)

Total

1,154,639

1,223,942

383,883

611,990

3,374,455(512,840)

2,861,615

Operating expenses

1,092,957

1,175,550

376,754

567,015

3,212,279(517,113)

2,695,165

Operating income

61,681

48,391

7,129

44,974

162,176

4,273

166,450

Identifiable assets

1,195,171

799,356

432,737

507,620

2,934,885(228,245)

2,706,639

Notes:

1 Country and area classifications are based on geographic proximity.
2 Major countries and areas included in each geographic segment are as follows:
The Americas: United States, Canada, Mexico, Venezuela, Brazil, etc.
Europe: Germany, United Kingdom, France, Italy, Spain, etc.
Other: Asia Pacific, Africa, etc.

32

2,861,615－

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(3) Overseas Sales
Previous Year (Year ended December 31, 2009)
The Americas

Europe

Other

Total

I. Overseas Sales(Yen in millions)

1,125,659

363,011493,520

1,982,191

II. Net Sales(Yen in millions)

－

－

－

2,597,002

III. Overseas Sales / Net Sales (%)

43.3

14.0

19.0

76.3

Current Year (Year ended December 31, 2010)
The Americas

Europe

Other

Total

I. Overseas Sales(Yen in millions)

1,212,926

387,974

588,864

2,189,765

II. Net Sales(Yen in millions)

－

－

－

2,861,615

III. Overseas Sales / Net Sales (%)
Notes:

42.4

13.6

20.6

1 Country and area classifications are based on geographic proximity.
2 Major countries and areas included in each geographic area are as follows:
The Americas: United States, Canada, Mexico, Venezuela, Brazil, etc.
Europe: Germany, United Kingdom, France, Italy, Spain, etc.
Other: Asia Pacific, Middle East, Africa, etc.
3 Overseas sales are those of the Company and its subsidiaries in countries and areas other than Japan.

33

76.5

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Per share information)(Yen)
Previous Year
(Year ended December 31, 2009)

Current Year
(Year ended December 31, 2010)

Total equity per share

1,385.43

1,458.01

Net income per share

1.33

126.19Diluted net income per share

1.33

126.16

Items

Notes:

Total equity per share and diluted net income per share are calculated based on the following:34

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

Previous Year
(Year ended December 31, 2009)
Net income per share

Current Year
(Year ended December 31, 2010)(Yen in millions)(Yen in millions)

1,043

98,913

－

－

1,043

98,913

Average number of shares heldby common shareholders
during term
Diluted net income per share(Thousands of shares)
784,287(Thousands of shares)
783,818(Thousands of shares)(Thousands of shares)

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

－
109
(109)

－
228
(228)

Stock options (via warrant rights) as a
resolution of the annual shareholders’meeting, March 28, 2002
Common Stock193

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2004
Common Stock225

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 28, 2003
Common Stock112

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2005
Common Stock
252

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2004
Common Stock226

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2006
Common Stock280

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2005
Common Stock
252

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 29, 2007
Common Stock260

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 30, 2006
Common Stock280

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting and the board of
directors, March 27, 2008
Common Stock234

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

Summary of residual shares withno dilution effect and therefore
not included in calculation ofdiluted net income per share

Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting, March 29, 2007
Common Stock260
Stock options (via stock acquisitionrights) as a resolution of the annual
shareholders’ meeting and the board of
directors, March 27, 2008
Common Stock234

35

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Lease transactions, transactions with related parties, income taxes, financial instruments, investments insecurities, derivative transactions, retirement and pension plans, stock options, business combinations,investment and rental property)
These are deemed to have minor importance and are therefore omitted.

36

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

5. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheet(Yen in millions)
Previous Year(As of December 31, 2009)

Current Year(As of December 31, 2010)

AssetsCurrent Assets
Cash and deposits

18,18727,032

Trade notes receivable

2,482

2,296

Trade accounts receivable

282,992

311,424

Short-term investments

80,39928,299Merchandise and finished products

36,81936,206Work in process

9,245

10,737

Raw materials and supplies

23,73826,606

Deferred tax assets
Short-term loans for subsidiaries andaffiliated companies
Accounts receivable-other

12,232

10,774

15,374

15,50015,323

16,695

Other

8,845

12,779

(31)

(198)

505,609498,155

Buildings, net

99,572103,956

Structures, net

8,603

8,414

Machinery and equipment, net

90,357

87,698

Vehicles and carriers, net

1,450

1,256

Tools, furniture and fixtures, net

13,81011,726

Land

70,60970,483

Construction in progress

26,331

23,046

Total tangible assets

310,735

306,582

1,156

1,148

150,380140,038

624,556

628,353

58,55872,583

1,455

1,051

14,215

16,559－(3)

849,166

858,581

Total Fixed Assets

1,161,059

1,166,312

Total

1,666,668

1,664,467

Allowance for doubtful accounts
Total Current Assets
Fixed Assets
Tangible assets

Intangible assets
Investments and other assets
Investments in securities
Investments in subsidiaries and affiliatedcompanies
Investments in subsidiaries and affiliatedcompanies, other than stockLong-term loans for subsidiaries andaffiliated companies
Other
Allowance for doubtful accounts
Total investments and other assets

37

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Yen in millions)
Previous Year(As of December 31, 2009)

Current Year(As of December 31, 2010)

Liabilities
Current Liabilities
Trade accounts payable

82,728Current portion of bonds

106,407

60,000－Current portion of long-term borrowings－

110,000

Lease obligations

173

200

Accounts payable-other74,976

72,775

Accrued expenses

24,44025,763539

5,873

Deposits received

6,537

7,124

Other

3,653

2,868

253,049

331,013

Bonds

110,000

110,000

Long-term borrowings

Income taxes payable

Total Current Liabilities
Long-term Liabilities

110,000－

Lease obligations

2,101

2,013

Deferred tax liabilities

29,312

31,964

Accrued pension and liability for retirement benefits

43,07340,395

Provision for environmental remediation

3,648

4,543

787

657

Other
Total Long-term Liabilities

298,923

189,574

Total Liabilities

551,972

520,587

126,354

126,354

122,078

122,078

Other capital surplus

568

550

Capital Surplus Total

122,647

122,629

31,27831,278305

294

Net Assets
Shareholders' equity
Common stock
Capital surplus
Capital reserve

Retained earnings
Legal reserve
Other retained earnings
Reserve for extraordinary write-downReserve for compression of fixed assets

17,995

18,902

General reserve789,310789,310

Unappropriated retained earnings

16,37851,696

Retained earnings total

855,269

891,482(54,846)(57,244)

1,049,423

1,083,222

64,95260,007(17)

135

64,93560,143336

514

Total Net Assets

1,114,695

1,143,880

Total

1,666,668

1,664,467

Treasury stock-at cost
Total shareholders’ equity
Net unrealized gain(loss) and translation
adjustments
Net unrealized gain on available-for-sale securities
Deferred gain(loss) on derivative instruments
Total Net unrealized gain(loss) andtranslation adjustments
Stock acquisition rights

38

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(2) Non-consolidated Statements of Income

Net Sales(Yen in millions)
Previous Year
(Year ended December 31, 2009)
749,215

Current Year
(Year ended December 31, 2010)
895,623

Cost of Sales
Beginning merchandise and finished products

62,25036,819

Cost of products manufactured

392,967

482,545

Purchase of merchandise and finished products

132,356

162,445

Total

587,574

681,810

Transfer to other accounts

2,797

4,349

Ending merchandise and finished products

36,81936,206

Cost of merchandise and finished products sold

547,957

641,254

Gross profit

201,258

254,369

Promotion expenses

12,535

12,275

Goods freightage expenses

46,07953,873Advertising expenses

13,165

12,059

Salaries, allowances and bonuses

13,21114,147Retirement benefit expenses

1,954

1,754

Office cost

10,064

9,818

Depreciation

3,188

2,901

Research and development expenses

71,575

71,124

Selling, General and Administrative Expenses

Other

17,42917,924

Total selling, general and administrative expenses

189,203

195,879

Operating income

12,05458,490Interest income

317

246

Dividend income

13,116

18,057

Non-operating Income

Gain on sales of tangible assets

2,804

－

Other

5,884

6,170

Total non-operating income

22,12324,474

2,531

2,290

－

1,923

－

1,942

2,315

－

Non-operating Expenses
Interest expense
Loss on disposals of tangible assets
Loss on liquidation of subsidiaries and affiliatedcompanies
Loss on valuation of investments in subsidiaries andaffiliated companies, other than stock
Dismantlement expenses
Foreign currency exchange loss

1,379

－

1,253

3,444

Other

3,830

5,922

Total non-operating expenses

11,311

15,523

Ordinary income

22,86767,441

Loss on disposals of tangible assets

3,035

－

Loss on valuation of investments in securities

3,751

－

Extraordinary Loss

3,120

－

Total extraordinary loss

9,908

－

Income before income taxes

12,95967,441

Loss on provision for environmental remediation(Note1)

Income taxes - current

(878)

9,523

Income taxes - deferred(1,574)

7,586

Total income taxes(2,453)

17,109Net Income

15,41250,33139

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(3) Non-consolidated Statements of Changes in Net Assets(Yen in millions)
Previous Year
(Year ended December 31, 2009)

Current Year
(Year ended December 31, 2010)

Shareholders’ equity
Common stock
Ending Balance of the previous year

126,354

126,354－－

126,354

126,354

122,078

122,078－－

122,078

122,078

579

568

Disposition of treasury stock

(11)

(17)

Total changes in the year

(11)

(17)

Ending Balance

568

550

31,27831,278Changes in the year
Total changes in the year
Ending Balance
Capital surplus
Capital reserve
Ending Balance of the previous year
Changes in the year
Total changes in the year
Ending Balance
Other capital surplus
Ending Balance of the previous year
Changes in the year

Retained earnings
Legal reserve
Ending Balance of the previous year
Changes in the year－－

31,27831,278Ending Balance of the previous year

718

305

Changes in the year
Withdrawal of reserve for extraordinary
write-down
Total changes in the year

(412)

(11)

(412)

(11)

Ending Balance

305

294

Ending Balance of the previous year

16,367

17,995

Changes in the year
Provision of reserve for compression of fixed
assetsTotal changes in the year

1,627

907

1,627

907

Ending Balance

17,995

18,902

769,310789,310

20,000－Total changes in the year
Ending Balance
Other retained earnings
Reserve for extraordinary write-downReserve for compression of fixed assets

General reserve
Ending Balance of the previous year
Changes in the year
Provision of general reserve
Total changes in the year

20,000－Ending Balance

789,310789,31040

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

(Yen in millions)
Previous Year
(Year ended December 31, 2009)

Current Year
(Year ended December 31, 2010)

Unappropriated retained earnings
Ending Balance of the previous year

37,082

16,378(14,901)(14,117)412

11(1,627)(907)

Changes in the year
Cash dividends
Withdrawal of reserve for extraordinary
write-down
Provision of reserve for compression of
fixed assets
Provision of general reserve(20,000)－

Net income

15,41250,331

Total changes in the year

(20,704)

35,318Ending Balance

16,37851,696(54,889)(54,846)

Purchase of treasury stock(10)(2,475)

Disposition of treasury stock

53

77

Total changes in the year43

(2,398)(54,846)(57,244)

1,048,880

1,049,423

Cash dividends(14,901)(14,117)

Net income

15,41250,331

Purchase of treasury stock(10)(2,475)

Disposition of treasury stock

42

60

Total changes in the year543

33,7981,049,423

1,083,222

33,93464,952Net Change in the year

31,018(4,944)

Total changes in the year

31,018(4,944)64,95260,00783(17)

Treasury stock-at costEnding Balance of the previous year
Changes in the year

Ending Balance
Total shareholders’ equity
Ending Balance of the previous year
Changes in the year

Ending Balance
Net unrealized gain(loss) and translation
adjustments
Net unrealized gain(loss) on available- for-salesecurities
Ending Balance of the previous year
Changes in the year

Ending Balance
Deferred gain(loss) on derivative instruments
Ending Balance of the previous year
Changes in the year
Net Change in the year

(100)

152

Total changes in the year

(100)

152

(17)

135

133

336

Net Change in the year

203

178

Total changes in the year

203

178

Ending Balance

336

514

Ending Balance
Stock acquisition rights
Ending Balance of the previous year
Changes in the year

41

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

Notes regarding going concern assumption
Not applicable

Notes(Non-consolidated Statements of Income)Previous Year
(Year ended December 31, 2009)
Note 1

Current Year
(Year ended December 31, 2010)

Loss on provision for environmental remediation
The Company has increased the provision forenvironmental remediation in preparation forrising cost of waste disposal based on related
legal requirements.

－

42

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

Senior Management Changes
The Company announced that a meeting of its board of directors convened today approved the following
proposals for senior management changes. Further, candidates for the positions of directors and a corporate
auditor are subject to approval at the annual shareholders’ meeting of scheduled for March 29. Plans call forthe election of those candidates on the same day.
1. New Members of the Board of Directors

Occupation in parentheses(Subject to approval of Shareholders' Meeting on March 29, 2011)
Member of the Board

Kimiko Murofushi〔Professor, Faculty of Science andGraduate School of Humanities andSciences, Ochanomizu University〕

Member of the Board

Scott Trevor Davis〔Professor, Department of Global
Business, College of Business,
Rikkyo University〕* Ms. Kimiko Murofushi and Mr. Scott Trevor Davis are candidates for outside directors as set forth in
Article 2-15 of the Corporate Law of Japan.
2. New Member of Corporate Auditors

Occupation in parenthesis(Subject to approval of Shareholders' Meeting on March 29, 2011)
Corporate Auditor (Non-Full-Time)

Kenichi Masuda〔LawyerPartner, Anderson Mōri &Tomotsune〕* Mr. Kenichi Masuda is a candidate for outside corporate auditor as set forth in Article 2-16 of the
Corporate Law of Japan.
3. Retiring Member of the Board of Directors
Vice President and Senior Officer
Member of the Board
Responsible for Quality Management

Plan after retirement in parentheses

Toru Tsuda

4. Retiring Members of Corporate Auditors〔Vice President and Officer
Seconded to Bridgestone Cycle Co.,
Ltd.
Member of the Board and Executive
Vice President of Bridgestone Cycle
Co., Ltd.〕Plan after retirement in parentheses

Corporate Auditor (Full-Time)

Takashi Yasukochi

Corporate Auditor (Non-Full-Time)

Toshiaki Hasegawa〔Vice President and Officer
Japan Tire Production〕* Mr. Toshiaki Hasegawa is an outside corporate auditor as set forth in Article 2-16 of the Corporate
Law of Japan.

43

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

5. Reappointed Members of the Board of Directors

Current position and responsibilities
in parentheses(Subject to approval of Shareholders' Meeting on March 29, 2011)
Chairman of the Board, CEO andPresident

Shoshi Arakawa〔Chairman of the Board, CEO andPresident〕

Senior Vice President
Member of the Board
Responsible for Japan Tire Business;
Concurrently responsible for
Replacement Tire Sales

Kazuhisa Nishigai〔Senior Vice President
Member of the Board
Responsible for Japan Tire Business;
Concurrently responsible for
Replacement Tire Sales〕

Masaaki Tsuya
Vice President and Senior Officer
Member of the Board
Chief Risk-Management Officer,
Chief Human Rights Officer
Responsible for Corporate
Administration;
Concurrently responsible forDiversified Products, Sports and Cycle
Business Administration
Chief Compliance Officer, Office ofGroup CEO, Internal Auditing〔Vice President and Senior Officer
Member of the Board
Chief Risk-Management Officer,
Chief Human Rights Officer
Responsible for Corporate
Administration;
Concurrently responsible forDiversified Products, Sports and Cycle
Business Administration
Chief Compliance Officer, Office ofGroup CEO, Internal Auditing〕

Vice President and Senior Officer
Member of the Board
Responsible for Quality Management

Mikio Masunaga〔Vice President and Senior Officer
Member of the Board
Responsible for Products
Development
Motorsport〕

Vice President and Senior Officer
Member of the Board
Responsible for Diversified Products
Chemical and Industrial Products
Production and Technology
Advanced Chemical and Industrial
Products Production Technology
Development

Kazuo Kakehi〔Vice President and Senior Officer
Member of the Board
Responsible for Diversified Products〕

Member of the Board

Sakie Tachibana
Fukushima〔Member of the Board〕

Member of the Board

Takao Enkawa〔Member of the Board〕* Ms. Sakie Tachibana Fukushima and Mr. Takao Enkawa are candidates for outside directors as set
forth in Article 2-15 of the Corporate Law of Japan.

44

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

6. New Members of Corporate Officers

Current position and responsibilities
in parentheses（Effective March 29, 2011）
Vice President and Senior Officer ofBridgestone Corporation
Member of the Board,
CEO and President ofBridgestone Americas, Inc.

Gary Garfield〔Member of the Board,
CEO and President ofBridgestone Americas, Inc.〕

Vice President and Senior Officer ofBridgestone Corporation
Member of the Board andChief Operating Officer ofBridgestone Americas, Inc.

Eduardo Minardi〔Member of the Board andChief Operating Officer ofBridgestone Americas, Inc.〕

Vice President and Officer
Global Production Administration andLogistics, Mold Technology and
Manufacturing;
Concurrently Director,
Mold Technology and Manufacturing
Division;
Concurrently General Manager,
SCM Renovation Project Group
Production Distribution Administration
Division

Masakazu Sekiguchi〔Director
Japan Tire Production Division〕

Vice President and Officer ofBridgestone Corporation
Member of the Board,
Chief Administrative Officer andExecutive Vice President ofBridgestone Americas, Inc.

Christine Karbowiak〔Member of the Board,
Chief Administrative Officer andExecutive Vice President ofBridgestone Americas, Inc.〕

Franco Annunziato
Vice President and Officer ofBridgestone Corporation
Member of the Board,
Chief Quality Officer and Senior Vice
President－Technology ofBridgestone Europe NV/SA

45〔Member of the Board,
Chief Quality Officer and Senior Vice
President－Technology ofBridgestone Europe NV/SA〕

Bridgestone Corporation (5108)
Consolidated Financial Statements for Fiscal 2010

7. Promotion of Corporate Officer

Current position and responsibilities
in parenthesis（Effective March 29, 2011）
Yoshiyuki Morimoto
Vice President and Senior Officer
Responsible for Products
Development
Tire Research and Material
Development;
Concurrently Assistant to Vice
President and Officer, Office of Group
CEOTechnology Relations
8. Retiring Corporate Officer〔Vice President and Officer
Tire Research and Material
Development;
Concurrently Assistant to Vice
President and Officer, Office of Group
CEOTechnology Relations〕

Plan after retirement in parenthesis（Effective March 29, 2011）
Vice President and Officer
Chemical and Industrial Products
Production and Technology
Advanced Chemical and Industrial
Products Production Technology
Development

Satoshi Tagomori

46〔Chairman, CEO and President ofBridgestone Elastech Co., Ltd.〕