Financial Resultsfor 3rd Quarter of Fiscal 2016

Bridgestone Corporation
November 9, 2016

Contents

1. Business and Financial Performancefor 3rd Quarter of Fiscal 2016

P. 3

2. Consolidated Projectionsfor 2nd Half of Fiscal 2016

P. 8

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１． Business and Financial Performancefor 3rd Quarter of Fiscal 2016

Business Environment Surrounding◆ Estimated Tire Demand◆ Currency Exchange

Tire Demand for 2016 3rd Quarter : Original Equipment (VS PY)
Passenger
Radial Tires
Q39 months

Truck and Bus
Radial Tires
Q39 months

Japan101％

99％98％101％

N. America

101％103％77％80％

Europe107％

104％104％109％

2015

2016

Q1Q2

Q3

Q4

Q1Q2

Q3US Dollar

119121122121115

108102

Euro134

134

136

133127122114◆ Raw Materials
Tire Demand for 2016 3rd Quarter : Replacement (VS PY)
Passenger
Radial Tires
Q39 months

Market trend of natural rubber and crude oil (Average)
2015

Truck and Bus
Radial Tires
Q39 months

Japan

96％

98％

102％

101％

N. America

102％

101％

95％

102％

Europe

98％

101％

99％

102％

Q1

Q2

Q3

Q4

Q1Q2

Q3

Natural Rubber<TSR20>*(￠/kg)

142151134

119115137

131

Natural Rubber<RSS#3>*(￠/kg)

172

178

146

125

131

165

167

48

57

46

42334544

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Crude Oil
<WTI>(＄/bbl)Note: The numbers of demand are estimated by Bridgestone Corporation

2016* Source: Singapore Commodity Exchange Limited

Consolidated Results for 3rd Quarter of Fiscal 2016
Yen/US dollar rate:102(20yen)

108(13yen)100

105

Yen/Euro rate:(Yen in billions)114(22yen)121(14yen)

110

117

2016
3rd Quarter
Results

vs PY

vs PY(%)

2016
9 Months
Results

Net Sales

798.2

(17)

Tires

660.2

DiversifiedProducts（Ref. Aug. 9, 2016 announcement）(%)

2016 2nd HalfProjections

2016 FYProjections

2,444.8(13)

1,693.4

3,340.0(18)

2,013.0(15)

1,407.2

2,760.0

141.4

(13)

442.5

(7)

288.9

590.0

Operating
Income

111.1

(21)

329.4

(13)

234.7

453.0

(Ratio)13.9%(Ratio)(0.7pt)(Ratio)13.5%(Ratio)－(Ratio)
13.9%(Ratio)
13.6%

Tires

101.7

(21)

300.3

(13)

211.3

410.0

Diversified
Products

9.4

(22)

29.0

(11)

20.4

40.0

Ordinary Income

106.4

(20)

320.3

(12)

220.0

434.0

ExtraordinaryLoss (Gain)
Profit Attributable toOwners of Parent

10.7(72)

17.6(39)

59.7+18183.0(6)

133.6

257.0

Note: Figures within parentheses mean minus

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Analysis of Consolidated Operating Income for 3rd Quarter of Fiscal 2016
(Yen in billions)
150
140
Price, Mix,
Volume etc.
(22.6)

130
120
110

140.8

100
90

Foreign
Exch.
Loss(25.0)

Raw
Materials
+22.0
SGA
(3.0)

Depreciation(1.0)

StrategicProducts0

111.1802015 3rd Quarter
Operating Income(Yen in billions)
410

Exchange rate
Sensitivity (full year)380

USD：3.4bil. Yen
EUR：0.4bil. Yen

350
320
290
260

378.6

ForeignExch.
Loss(48.0)

2302002016 3rd Quarter
Operating Income(29.6)

SGA(8.0)

Raw
Materials+79.0

Depreciation(3.0)

Price, Mix,
Volume etc.
(72.2)

2015 9 months
Operating Income
Note: Figures within parentheses mean minus(49.2)

StrategicProducts
+3.0

329.4

2016 9 months
Operating Income
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Financial Results for 3rd Quarter of Fiscal 2016 : Geographic Segments(Yen in billions)2016
3rd QuarterResultsvs PY(％)

2016
9 MonthResults

vs PY

Japan

242.3(13)762.2(11)The Americas

406.2(21)1,228.4

(16)

EMEA

116.7

N/A*

360.6

N/A*

Other Regions

149.5

N/A*

461.4

N/A*

Consolidated
Net Sales

798.2(17)2,444.8

(13)

Japan

26.7(41)94.5(32)

The Americas

48.4(22)149.9(12)

EMEA

10.4

N/A*

24.3

N/A*

Other Regions

17.5

N/A*

49.4

N/A*

Consolidated
Operating Income

111.1(21)329.4(13)(％)* At the beginning of fiscal year 2016, “Middle East & Africa” 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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２． Consolidated Projectionsfor 2nd Half of Fiscal 2016

Forecast of Business Environment Surrounding◆ Estimated Tire Demand◆ Currency Exchange

Tire Demand for 2016 2nd Half :Original Equipment (VS PY)
Passenger
Radial Tires

2015

102％

100％

N. America

101％

80％

Europe105％

95％

2ndHalf

FullYear

1stHalf

2ndHalfFullYearUSDollar120122

121

111

101

106

100

Euro134135134124112

118110◆ Raw Materials

Tire Demand for 2016 2nd Half :Replacement (VS PY)
Passenger
Radial Tires（Ref. Aug. 9,2016announcement）
2016 2nd HalfProjections

1stHalf

Truck and Bus
Radial Tires

Japan2016

Truck and Bus
Radial Tires

Japan

100％

104％

N. America

99％

98％

Europe97％98％

Note: The numbers of demand are estimatedby Bridgestone Corporation*Source: Singapore Commodity Exchange Limited

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Summary
3rd Quarter Actual

2nd Half Forecast(“projection”; released on Aug. 9th)
- Q4; 1USD=100yen, 1EUR=110yen(same as projection)

Currency
Exchange “FX”

- Q3; 1USD=102yen, 1EUR=114yen(slightly weaker yen than projection)

Tire sales
volume- Same level as PY in PSR & TBR- Continued downward trend in ORR
Ultra-large/Large

Selling Price/Raw Material- Secure prices with value added in each market- vs PY; Lower raw material prices pressured final sales prices

SGA- Increased from PY exc. FX, for
R&D activities and sales promotion- Control SGA to appropriate level considering
sales trends

Consolidated
FinancialResults- Operating income exc. FX;Slightly lower than PY, mainly due
to lower sales of Mining tires- Unchanged from Aug. projection“Better operating income than PY exc. FX”- Lean operation will support financial results- 2H; 1USD=101yen, 1EUR=112yen- Slightly weaker in TBR than projection- In line with projection this year and expected tomove into recovery trend from 2017 in ORR
Ultra-large/Large

Copyright © 2016 Bridgestone Corporation | Nov. 9, 2016

Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies andbeliefs and other statements that are not historical facts are forward-looking statements about the futureperformance of Bridgestone. Forward-looking statements include, but are not limited to, those statements using
words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate,""may" or "might" and words of similar meaning in connection with a discussion of future operations, financialperformance, events or conditions. From time to time, oral or written forward-looking statements may also beincluded in other materials released to the public. These statements are based on management'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 theforward-looking statements, and therefore you should not place undue reliance on them. You also should not
rely on any obligation of Bridgestone to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Bridgestone disclaims any such obligation.
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