Financial Resultsfor First Half of Fiscal 2010

Bridgestone Corporation
August 6, 2010
1

Business and Financial Performance2Consolidated Results for First Half of Fiscal 2010
(Yen in billions)

Reference
June 24th, 2010
Announcement

2009
1H Results

2010
1H Results

vs.PY(%)

1H Projections

Net Sales

1,205.3

1,385.9+15

1,380.0

Tires

990.4

1,147.0+16

Diversified
Products

219.7

244.2

+11

Operating income*(19.9)

78.4-(63.0)

Ordinary income*(33.8)

67.9-(57.0)Net income*(38.3)

44.5-(37.0)

96
128

91
121

(5)
(7)

92
121

Yen/US dollar rate:
Yen/Euro rate:

2010

3

*Figures within parentheses mean loss

Analysis of Consolidated Operating Income for First Half of Fiscal 2010
Volume,Price,
Mix etc.
+143.3(Yen in billions)
100

8060

Exchange ratesensitivity(full year)
1USD：1.8 bil. Yen
1EUR：0.6 bil. Yen

40

78.4

200(19.9)

SGA△12.0-20-40-60

ForeignExch.
Loss
△6.0

Raw
Materials△42.0

Depreciation+1.0

StrategicProducts+14.0-80-100

2009 1H Results+98.3

2010 1H Results4Consolidated Projections for Fiscal 2010
(Yen in billions)

2009
Results

Reference
June 24th, 2010
Announcement

2010
Projections

vs.PY(%)

2010
Projections
2,900.0

Net Sales

2,597.02,900.0+12Tires

2,152.9

2,420.0+12

Diversified
Products

454.1

490.0

+8

Operating income

75.7

157.0+107

130.0

Ordinary income

54.4

135.0+148

113.0

Net income

1.0

91.0+77.0

94
13091
115

(3)
(15)

91
115

Yen/US dollar rate:
Yen/Euro rate:

5

Analysis of Consolidated Operating Income for Fiscal 2010
Volume,Price,
Mix etc.
+251.2(Yen in billions)
200160ForeignExch.
Loss
△17.0

12080
40

Depreciation SGA0
△38.0

75.7

157.0

RawMaterials△140.00-40-80

Exchange ratesensitivity(full year)
1USD：1.8 bil. Yen
1EUR：0.6 bil. Yen

StrategicProducts+25.0-120-160

2009 Financial Results+81.2

2010 Financial Projections
62010 Sales Growth of Tire Strategic Products (vs. PY)
2010
1H Results

2010
Projections

Runflat tires

140％

120％

Ultra-high-performance tires

130％

125％

Winter tires

115％

110％

Ultralarge

115％

115％

Large

105％

125％

Aircraft radial tires

140％

115％

Motorcycle radial tires

125％

125％

Unit Sales Growth (vs. PY)
Passenger car
radial tires(Forreplacement)

Specialty tires

Off-the-road radialtires forconstruction andmining vehicles*The figures for off-the-road radial tires are calculated by rubber volume.

Expansion of tire strategic products
for operating income increases (vs. PY)(Yen in billions)

+14.0

+25.0
7

Financial Results for First Half and Projections for Fiscal 2010:
Business Segment(Yen in billions)

Tires

DiversifiedProducts

2009
1H
Results

2010
1H
Results

Net Sales

990.4

Operatingincome*vs.PY(%)

2009
Results

20010
Projections

vs.PY(%)

1,147.0+16

2,152.9

2,420.0+12(15.2)

70.6

-75.2

141.0+87

Operatingincomemargin (%)

(1.5)

6.2

3.5

5.8

Net Sales

219.7

244.2

+11454.1

490.0

+8

Operatingincome*

(4.7)

7.8

-0.4

16.0+

Operatingincomemargin (%)

(2.1)

3.2

0.1

3.3

*Figures within parentheses mean loss

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Financial Results for First Half and Projections for Fiscal 2010:
Japan Segment(Yen in billions)2009
1H Results

2010
1H Results

vs.PY(%)

Net Sales

449.3

546.3

+22

Operatingincome(31.0)

29.5-

Operatingincomemargin (%)

(6.9)

5.4

2009Results

2010
Projectionsvs.PY(%)

1,011.9

1,160.0+1514.3

62.0

+331

1.4

5.3*Figures within parentheses mean loss

9

Financial Results for First Half and Projections for Fiscal 2010:
The Americas Segment(Yen in billions)2009
1H Results

2010
1H Results

vs.PY(%)

Net Sales

539.6

607.8+13

Operatingincome5.2

24.7+368

Operatingincomemargin (%)

1.04.1

2009
Results

2010
Projections

vs.PY(%)

1,132.8

1,250.0+1034.4

41.0+193.0

3.3

10

Financial Results for First Half and Projections for Fiscal 2010:
Europe Segment(Yen in billions)2009
1H Results

2010
1H Results

vs.PY(%)

Net Sales

168.9

188.2+11

Operatingincome(12.5)

2.4-

Operatingincomemargin (%)

(7.5)

1.3

2009
Results

2010
Projectionsvs.PY(%)

362.5

370.0+2(11.9)

3.0-(3.3)

0.8*Figures within parentheses mean loss

11Financial Results for First Half and Projections for Fiscal 2010:
Other Regions Segment(Yen in billions)2009
1H Results

2010
1H Results

vs.PY(%)

Net Sales

234.1

296.6

+27

Operatingincome8.6

23.9+177

Operatingincomemargin (%)

3.7

8.1

2010
Projectionsvs.PY(%)

511.5

620.0

+21

32.9

52.0+58

6.4

8.4

2009
Results

12B/S Highlight
FY 2010 1H(As of June 30,2010)Total Assets
Total Current Assets
Total Fixed Assets
Total Equity
Ratio of total equity to total assets（％）
Interest-Bearing Debt (Net)(Yen in billions)
2,649.2
1,220.6
1,428.6(Yen in billions)△159.1△53.8△105.3

1,109.0
40.6

△11.7
+1.9

516.0

△34.0

FY 2010 1H(Six months ended
June 30, 2010)
Capital Expenditure
Depreciation
ROA（％）

vs.Dec 31, 2009

(Yen in billions)
77.2
81.6
3.3

vs.PY
(Yen in billions)△4.5△1.9+6.0
13Dividends

Yen per sharevs. previousprojections(Feb.19,2010Announcement)

10 yen+2 yen

Year-end dividend (projections)

10 yen+2 yen

Annual dividend (projections)

20 yen+4 yenInterim dividend(Date of dividend payment :September 1, 2010)14

Business Environment andBridgestone Group’s Initiatives

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1. Business Environment Surrounding Bridgestone Group1)Currency Exchange:[Projected Exchange Rate for FY2010]
91yen/dollar

3 yen appreciation vs.2009

115yen/euro 15 yen appreciation vs. 20093)Replacement Tire Demand for FY2010[Estimated Demand Ratioof the major markets vs. 2009]Markets

PSR TBRJapan1031082)Raw Material Prices Remain at High Level

U.S.A.

109

110[Market Trendsof Natural rubber and Crude Oil]Europe99

106

Thailand103

114

Indonesia

116

111

India

111

113

China

112

116

08
2020 091020 .1Q
10.2
Q

PSR: Radial tires for passenger cars
TBR: Radial tires for trucks and buses

2007

06

Crude Oil（WTI）

2020

20

20

2005

400
350
300
250
200
150
10004

US￠/kg120.00100.00
80.00
60.00
40.00
20.00
03

US$/BBL

Natural Rubber（SICOM）*The numbers of demand except for Japan are estimatedby Bridgestone Corporation*For Japan, referred the figures estimated by the Japan Automobile
Tyre Manufactures Association, Inc, (JATMA)

16

2. 2010 initiatives under the current business environment
Implement following Initiatives with the long-term scope

1) To Cushion the Impact of Currency Appreciation
・ Enhance production efficiency and reinforce competitiveness of manufacturing sites
in Japan, while producing products of high quality
・ Utilize global manufacturing sites efficiently2) To Reduce the Impact of Raw Materials Costs
・ Revise tire prices based on market conditions and product mix
・ Penetrate the sales system to link tire prices to customers with raw materials prices

3) To Take the Recovery of Demand into Increase of Sales Volume
・ Increase production capacity and enhance production efficiency-> Increase sales volume and improve costs while maintaining and enhancing thequality and safety of the final product4) To achieve ideal status of business operations
ex. Realign manufacturing operations of radial tires for trucks and buses
Further expansion of retread and solutions business17

3. Initiatives to build strong business structures for the future1)Enhance the lineup of eco-friendly products
EVA (ethylene vinyl acetate) film

2)Enhancing products whichcontribute to costumers’ safety"Multi-Rubber Bearing"seismic isolator
Ultra-thin All-flexible
Electronic Paper Display
Run-Flat tires3)Proactive investments to the emerging markets
・ Establish New Plant

・ Increase production capacity

New Plant in India

Country

Plant

Tires

ThailandNong Khae

PSR+6000/day by the end of 2010

Indonesia

Karawang

PSR/LTR+8400/day by the second half of 2010

PSR/LTR+3000/day by the first half of 2012

India

IndorePSR/LTR+4500/day by the second half of 2010

- Location: Near Pune, Maharashtra State- Start of Production: 2013
- Production Capacity:
PSR-Approximately 10,000 units per day,
TBR-Approximately 3,000 units per day(Planned by the end of 2020)

China

Wuxi

Increased Capacity

TBR+400/day by the second half of 2012

PSR

+4200/day by the second half of 201118

Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs and other statementsthat are not historical facts are forward-looking statements about the future performance of Bridgestone. Forward-looking statements
include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast,""estimate," "project," "anticipate," "may" or "might" and words of similar meaning in connection with a discussion of future operations,financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in othermaterials 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 of important risks and uncertainties could cause actual results to differ
materially from those discussed in the forward-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
19
information, future events or otherwise. Bridgestone disclaims any such obligation.