Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

Consolidated Financial Statements
for the First Three Quarters of the Fiscal Year Ending December 31, 2011
November 8, 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 quarterly securities report submission:
November 11, 2011
Scheduled date of dividend payment commencement:
Supplementary information for the quarterly financial statements to be prepared:
Yes
Meeting to explain for the quarterly financial statements to be held:
No(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Three Quarters of Fiscal 2011 (January 1, 2011 - September 30, 2011)(1) Consolidated Operating Results(Percentage figures represent changes from the same period of previous year)

Net sales
Nine months ended
September 30, 2011
Nine months ended
September 30, 2010

Operating income

Ordinary income

Net income

Yen in millions%

Yen in millions%

Yen in millions%

Yen in millions%

2,234,433

6.8

143,39926.4

129,866

28.7

81,95222.8

2,091,246

11.6

113,405

838.1

100,875－

66,762－

Net income
per share
Nine months ended
September 30, 2011
Nine months ended
September 30, 2010

Diluted net income
per share
Yen

Yen

104.71104.66

85.14

85.11

(2) Consolidated Financial Position
Total assets

Net assets

Ratio of total equity tototal assets

Total equity per share

Yen in millions

Yen in millions%

Yen

2,647,130

1,168,466

42.8

1,448.60

As of September 30,
2011
As of December 31,
2010(Reference) Total equity

2,706,639

1,176,147
As of September 30, 2011
As of December 31, 201042.2
¥1,133,763 million¥1,141,128 million

1,458.01

2. Dividends
1st quarter
end

Annual Dividend
2nd quarter3rd quarter
Year -end
end
end

Yen

FY 2010
FY 2011

－
－

Total

Yen

Yen

Yen

Yen

10.00
10.00

－

10.00

20.00

FY 2011
－
10.00
20.00
(Projection)(Note) Revision of the projections at the time of the announcement of the first three quarters results of fiscal 2011: No

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 sales
Yen in millions

Operating income%

Yen in millions%

Yen in millions%

Yen in millions%

Yen

FY 20113,130,000
9.4
194,000
16.6
180,000
21.7
115,000
16.3(Note) Revision of the projections at the time of the announcement of the first three quarters results of fiscal 2011: No

146.93

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

4. Others(1) Changes in principal subsidiaries during the third quarter : No
(Note) Changes in specified subsidiaries involving change in consolidation scope(2) Application of simplified and special accounting treatments: Yes(Note) Application of simplified and special accounting treatments for quarterly consolidated financial
statements(3) Changes in accounting principles, procedures, method of presentation
1) Changes due to revisions of accounting standards, etc. : Yes
2) Changes other than 1): No(Note) Changes in accounting principles, procedures, method of presentation associated with the preparationof the quarterly consolidated financial statements (matters to be included in the section, changes inbasic important matters for preparation of quarterly consolidated financial statements)(4) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
September 30, 2011
813,102,321 shares
December 31, 2010
813,102,321 shares
2) Number of shares of treasury stock at period end
September 30, 2011
December 31, 2010

30,440,567 shares
30,439,281 shares

3) Average outstanding number of shares (during the first three quarters)
First Three Quarters ended September 30, 2011
782,662,324 sharesFirst Three Quarters ended September 30, 2010
784,164,221 shares* Implementation status about the quarterly review
These financial statements are exempt from quarterly review procedures as required by the Financial Instruments
and Exchange Act. A part of quarterly review based on Financial Instruments and Exchange Act were not completed
at the time of the disclosure of these financial statements.
* 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 financial results to differ substantially from management’s projections and plans.
2. Information about Bridgestone Corporation and certain of its subsidiaries’ cartel activities regarding the sale ofmarine hoses and improper monetary payments is included on page 9, “3. Consolidated Quarterly Financial
Statements, (4) Additional Information.”Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

[ Index ]1. Qualitative Information for the First Three Quarters of Fiscal 2011

…P2

(1) Qualitative Information on Consolidated Operating Results…P2(2) Qualitative Information on Consolidated Financial Position…P4(3) Qualitative Information on Projections of Consolidated Results…P4

2. Other information…P5(1) Overview of changes in principal subsidiaries during the Third Quarter…P5(2) Overview of application of simplified and special accounting treatments…P5(3) Overview of changes in accounting principles, procedures and method of presentation…P5

3. Consolidated Quarterly Financial Statements…P6(1) Consolidated Balance Sheet…P6(2) Consolidated Statements of Income…P8(3) Notes regarding going concern assumption…P9(4) Additional Information…P9(5) Segment Information…P10(6) Notes regarding to significant changes in the amount of shareholders’ equity…P11

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

1. Qualitative Information for the First Three Quarters of Fiscal 2011
The Bridgestone Corporation is referred to as the “Company,” and the Company and its subsidiaries are referred
to as the “Companies.”(1) Qualitative Information on Consolidated Operating Results
1) Sales and earnings
FY 2011 3Q

FY 2010 3Q(Nine months ended(Nine months ended

September 30, 2011)

September 30, 2010)

Yen in billions

Yen in billions

Yen in billions%

2,234.4

2,091.2

143.1

7

Operating income

143.3

113.4

29.9

26

Ordinary income

129.8

100.8

28.9

29

Net income

81.9

66.7

15.1

23

Net sales

Increase(Decrease)

In the first three quarters of fiscal 2011(January 1 to September 30, 2011), the Companies’ operating
environment was plagued by raw material prices remaining relatively high level and the appreciating Japaneseyen. Despite these challenges, the domestic economy showed signs of recovery, in spite of the impact of theGreat East Japan Earthquake on March 11, 2011. While the United States economy was gradually recovering,and the business climate in Europe was showing signs of slight recovery, the recovery trend for both the UnitedStates and Europe was weakening. In Asia, the recovery or expansion continued to accelerate, particularly in
China and India.
Under these operating conditions, the Companies continued working to achieve the goal of becoming theWorld’s undisputed No. 1 tire and rubber company in both name and reality. Stepping up our efforts on a global
basis, the Companies focused on increasing the sales of highly competitive products, strengthening supply
capacity, improving manufacturing productivity, enhancing technology and effectively utilizing our management
resources. Moreover, within an operating environment that is evolving at an unprecedented speed, including thechanging structures for demand and competition, the Companies have been striving to rapidly implement a
range of initiatives to enhance our ability to respond quickly to market trends, increase the sales of strategic
products, construct and enhance a business model that will extend beyond the mere sale of products, anddevelop eco-friendly products and businesses. Additionally, the Companies have implemented price increases to
respond to the rising prices of raw materials. The Companies also suffered as a result of the Great East Japan
Earthquake, however, the Companies strived to implement all the initiatives to minimize the impact of thedisaster to the Companies’ business results while also providing necessary products and services required fordisaster recovery.
As a result, net sales in the first three quarters of fiscal 2011 was ¥2,234.4 billion, an increase of 7% over the
first three quarters of fiscal 2010, operating income was ¥143.3 billon, an increase of 26%, ordinary income was¥129.8 billion, an increase of 29% and net income was ¥81.9 billion, an increase of 23%.

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

2) Segment Information
FY 20113Q

FY 2010

3Q
Increase(Nine months ended(Nine months ended

September 30, 2011)

September 30, 2010)(Decrease)

Yen in billions

Yen in billions

Yen in billions%

1,870.1

1,730.6

139.4

8

Operating income

136.0

104.0

32.0

31

Diversified
Products

Net Sales

375.7

369.2

6.4

2

7.3

9.4

(2.0)

(22)

Consolidated
Results

Net Sales

2,234.4

2,091.2

143.1

7

143.3

113.4

29.9

26

Net Sales
Tires

Operating income

Operating income

In the tire segment, the Companies worked to maximize sales momentum by introducing appealing new products
worldwide, particularly those that have been identified as strategic and important to the Companies’ future growth.
The Companies also revised product prices in response to the rising cost of raw materials.
In Japan, unit sales of replacement tires for passenger cars and light trucks grew significantly compared to fiscal 2010.
However, from the decline in vehicle production volume due to the Great East Japan Earthquake, unit sales of tires for
new vehicles were substantially down from the first three quarters of fiscal 2010. The unit sales of tires for trucks andbuses grew significantly. In the Americas, the unit sales of passenger and light truck tires in North America decreased
compared to the first three quarters of fiscal 2010 due to a decline in the sales of replacement tires. However, there wasan increase from the first three quarters of 2010 in unit sales of strategic products such as runflat tires, UHP(ultra-high-performance) tires and winter tires in the replacement market. Additionally, unit sales of tires for trucks andbuses grew significantly. In Europe, unit sales of tires for passenger cars and light trucks increased from the first threequarters of fiscal 2010 due to an increase in the sales of the replacement tires. Unit sales of tires for trucks and buses
grew firmly compared to the first three quarters of fiscal 2010 led by an increase of original equipment tires. In thespecialty tire business, unit sales of large and ultralarge off-the-road radial tires for construction and mining vehicles
significantly exceeded those of the first three quarters of fiscal 2010.
As a result, net sales and operating income in the tire segment during the first three quarters of fiscal 2011 totaled¥1,870.1 billion and ¥136.0 billon, an increase of 8% and 31% from the first three quarters of fiscal 2010, respectively.
In the diversified products segment, net sales totaled ¥375.7 billion, an increase of 2% from the first three quarters offiscal 2010. Operating income was ¥7.3 billion, a decrease of 22% from the first three quarters of fiscal 2010, due todecline of profit in domestic business.

(Note１) The amounts for segment results include inter-segment transactions that are eliminated in calculating theconsolidated results.
(Note2) The Companies have two reportable segments: Tires and Diversified products, applied the “AccountingStandard for Disclosures about Segments of an Enterprise and Related information” (ASBJ Statement No. 17 ofMarch 27, 2009) and the “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information.” (ASBJ Guidance No. 20 of March 21, 2008)

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011(2) Qualitative Information on Consolidated Financial Position
Assets, Liabilities, and Net assets positions at the end of the first three quarters of fiscal 2011 were as follows.

(Assets)
In assets, while merchandise and finished products and raw materials and supplies increased ¥68.4 billion and ¥37.2
billion, cash and deposits, tangible assets and investments in securities each decreased ¥68.5 billion, ¥54.1 billion and¥36.0 billion respectively. As a result, assets decreased ¥59.5 billion compared with the end of the previous fiscal year,to ¥2,647.1 billion.

(Liabilities)
In liabilities, while commercial paper and long-term borrowings increased ¥12.9 billion and ¥40.3 billion, short-termborrowings, accounts payable-other and accrued pension and liability for retirement benefits decreased ¥41.9 billion,¥44.3 billion and ¥31.8 billion, respectively. As a result, liabilities decreased ¥51.8 billion compared with the end of theprevious fiscal year, to ¥1,478.6 billion.

(Net assets)
In net assets, while net income contributed ¥81.9 billion of increase, dividend payments, net unrealized gain on
available-for-sale securities and foreign currency translation adjustments decreased ¥15.6 billion, ¥22.6 billion and¥59.7 billion each. As a result, net assets decreased ¥7.6 billion compared with the end of the previous fiscal year, to¥1,168.4 billion.
Consequently, the ratio of total equity to total assets increased 0.6% compared with the end of the previous fiscal year,
to 42.8%.

(3) Qualitative Information on Projections of Consolidated Results
There are no changes in consolidated projections announced on August 8, 2011.

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

2. Other Information(1) Overview of changes in principal subsidiaries during the Third Quarter
Not applicable(2) Overview of application of simplified and special accounting treatments
1) Simplified treatment(Calculation for depreciation of tangible fixed assets)
Mainly, based on a plan that takes account of the acquisition, sale and removal of fixed assets during the
fiscal year, the scheduled amount of depreciation on a consolidated basis for the fiscal year was
allocated.
2) Special treatment(Calculation for income tax expense)
Income tax expense (including its deferral recognition in the same line) was calculated based upon an
estimated effective tax rate for fiscal 2011.
(3) Overview of changes in accounting principles, procedures and method of presentation

Adoption of the “Accounting Standard for Asset Retirement Obligations”
Starting from the first quarter of fiscal 2011, the Companies have adopted the “Accounting Standard for
Asset Retirement Obligations” (ASBJ Statement No. 18 of March 31, 2008) and the “Guidance on
Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No.21 of March 31, 2008).
Although the impact of this adoption on operating income and ordinary income is not material, ¥2,471 million
of loss on adjustment for changes of accounting standard for asset retirement obligations is recorded to
extraordinary loss.

Adoption of the “Accounting Standard for Equity Method of Accounting for Investments” and“Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using
the Equity Method”
Starting from the first quarter of fiscal 2011, the Companies have adopted the “Accounting Standard for
Equity Method of Accounting for Investments” (ASBJ Statement No.16 of March 10, 2008), and the “Practical
Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method”(ASBJ Practical Issues Task Force No.24, March 10, 2008). There is no impact on gain or loss during theperiod as a result of this adoption.

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

3. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheet(Yen in millions)
FY 2011 3Q(As of September 30, 2011)

FY 2010(As of December 31,2010)
Summary

AssetsCurrent Assets
Cash and deposits

116,824

185,334

Notes and accounts receivable432,156

426,935

Short-term investments

98,002

113,228

Merchandise and finished products

322,395

253,908

Work in process

40,55531,362

Raw materials and supplies

179,573

142,314

Other

149,162

133,768

Allowance for doubtful accounts(8,591)(9,884)1,330,079

1,276,968

Buildings and structures, net

321,588341,190

Machinery, equipment and vehicles, net

334,434

378,430

Other, net

296,453

287,003

Total tangible assets

952,477

1,006,624

28,05331,061

Investments in securities

181,313217,340

Other

156,726

176,232

Allowance for doubtful accounts(1,519)(1,588)

Total investments and other assets

336,520

391,984

Total Fixed Assets

1,317,051

1,429,671

Total

2,647,130

2,706,639

Total Current Assets
Fixed Assets
Tangible assets

Intangible assets
Investments and other assets

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

(Yen in millions)
FY 2011 3Q(As of September 30, 2011)

FY 2010(As of December 31,2010)
Summary

Liabilities
Current Liabilities
Notes and accounts payable

194,539

188,150

Short-term borrowings

255,225

297,176

Commercial paper

33,58020,608Current portion of bonds

20,026

21,108829

1,035

Income taxes payable

18,18915,113

Accounts payable-other

94,979139,333

Other

207,551

194,527

Total Current Liabilities

824,922877,052

Bonds

122,970

125,975

Long-term borrowings

231,754

191,373

Lease obligations

Long-term Liabilities

Lease obligations

7,305

5,888

Accrued pension and liability for retirement
benefits

205,298

237,194

Other

86,41293,009Total Long-term Liabilities

653,741

653,440

1,478,664

1,530,492

Common stock

126,354

126,354

Capital surplus

122,629

122,629

1,186,444

1,111,588(57,247)(57,245)

1,378,180

1,303,326

89,388112,064

(34)

(235)

Foreign currency translation adjustments(333,770)(274,026)

Total Net unrealized gain(loss) andtranslation adjustments(244,416)(162,197)

770

514

Minority Interests

33,931

34,503

Total Net Assets

1,168,466

1,176,147

Total

2,647,130

2,706,639

Total Liabilities

Net Assets
Shareholders' equity

Retained earnings
Treasury stock-at cost
Total Shareholders’ equity
Net unrealized gain(loss) andtranslation adjustments
Net unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative
instruments

Stock acquisition rights

Bridgestone Corporation (5108)(2) Consolidated Statements of Income
First Three Quarters

First three quarters results of fiscal 2011

(Yen in millions)
FY 2010 3Q(Nine months ended
September 30, 2010)

FY 2011 3Q(Nine months ended
September 30, 2011)

Net Sales

2,091,246

2,234,433

Cost of Sales

1,415,388

1,545,876

Gross profit

675,858

688,557

Goods freightage expenses

88,74999,570Advertising and promotion expenses

72,312

63,579

Salaries, allowances and bonuses

142,755

140,227

Retirement benefit expenses

13,591

10,118Depreciation

17,943

17,373

Research and development expenses

62,57162,054

Other

164,530

152,234

Total selling, general andadministrative expenses

562,453

545,158

Operating income

113,405

143,399

Interest income

2,391

3,035

Dividend income

2,286

3,112

Other

10,337

10,612

Total non-operating income

15,015

16,759Interest expense

14,34912,593Foreign currency exchange loss

1,583

3,600

Other

11,612

14,098

Total non-operating expenses

27,54530,292

Ordinary income

100,875

129,866

Gain on sales of noncurrent assets

-

6,114

Total extraordinary income

-

6,114

Impairment loss
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss on disaster
Loss related to US antitrust law andUS Foreign Corrupt Practices Act

-

4,705

-

2,471

-

2,462

-

2,149

Total extraordinary losses

Selling, General and Administrative Expenses

Non-operating Income

Non-operating expenses

Extraordinary Income

Extraordinary Loss-

11,788

Income before income taxes andminority interests

100,875

124,192

Income taxes

29,49938,100-86,092

Minority interests

4,613

4,139

Net income

66,762

81,952

Income before minority interests

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

(3) Notes regarding going concern assumption
Not applicable(4) Additional Information
Information about Bridgestone Corporation and certain of its subsidiaries’ cartel activities regarding the sale of marine
hoses and improper monetary payments

In May 2007, the U.S. Department of Justice, the European Commission, the Fair Trade Commission of Japan, andother authorities initiated investigations against the Company and certain of its subsidiaries in connection withinternational cartel activities regarding the sale of marine hoses.

During the course of investigations, 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 inconnection with the sale of marine hoses and other 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.

With respect to the marine hose cartel, the Company received orders from the Fair Trade Commission of Japan in
February 2008 which directed the Company to cease and desist from violating the Antimonopoly Act and to pay
surcharges for violating the Act.

The Company has responded to the order accordingly.

Moreover, in January 2009,

the Companies were notified by the European Commission of its decision to impose a fine of €58.5 million for
involvement in an international cartel related to the sale of marine hoses, and have paid the imposed fine.

In September 2011, the Company entered into a plea agreement with the U.S. Department of Justice.

Under theplea agreement, the Company agreed to plead guilty to an antitrust conspiracy and a conspiracy to violate the Foreign
Corrupt Practices Act, and to pay a fine of $28 million.

The plea agreement was approved by the U.S. District Court in

October 2011, finalizing the penalty against the Company, and the Company has paid the fine accordingly.

The

Company has recorded ¥2,149 million as an expense in connection with this fine in the third quarter of fiscal year 2011.

Proceedings initiated in other countries with respect to the marine hose cartel have already been finalized.

In regard

to the class action lawsuit brought in the United States in connection with the marine hose cartel, a final approval of
proposed settlements was granted by the Court.
appropriate manner.

Further, the Company has handled other individual civil claims in anBridgestone Corporation (5108)

First three quarters results of fiscal 2011(5) Segment Information

1. Overview of reporting segments

The Companies’ reportable segments are components of the Companies whose separate financial information is
obtainable, and the Board of Directors and the Management Committee regularly consider these segments in order todecide the allocation of business resources and evaluate business performance.
The Companies’ reporting segments consist mainly of Tire business including the production and sale of tires andtubes, sale of wheels and accessories, the production and sale of retread material and services, auto maintenance,
and Diversified products business including Chemical and Industrial Products, BSAM Diversified Products (Note),
sporting goods, bicycles, etc.
Thus, the Companies have two reportable segments: Tires and Diversified products.
(Note)BSAM Diversified Products: A business under BRIDGESTONE AMERICAS, INC. supplying commercial roofing materials etc.

2. Information regarding Sales and Income (Loss) by Reporting Segment
FY 2011 First Three Quarters (Nine months ended September 30, 2011)
Tires

Diversified
Products(Yen in millions)
Total

Adjustments(note)

Consolidated

Net sales:
366,234

2,234,433

Inter-segment

1,868,199
186 1
1,905

9,478

11,384(11,384)－

Total

1,870,105

375,7122,245,817(11,384)

2,234,433

136,047

7,349

143,3963

143,399

External customers

Segment income(Operating income)－

2,234,433(Note) Adjustments of segment income refer to elimination of intersegment transactions.

3. Information regarding Impairment Loss on Fixed Assets and Goodwill by Reporting Segment

FY 2011 First Three Quarters (Nine months ended September 30, 2011)(Impairment Loss on Fixed Assets)
Impairment loss is recorded ¥226.0 billion and ¥244.5 billion in Tire business and Diversified products segment,
respectively.
Additional Information

Starting from the first quarter of fiscal 2011, the Companies have adopted the “Accounting Standard for Disclosuresabout Segments of an Enterprise and Related information” (ASBJ Statement No. 17 of March 27, 2009) and the“Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information.” (ASBJ
Guidance No.20 of March 21, 2008)

Bridgestone Corporation (5108)

First three quarters results of fiscal 2011

(Reference)

Information by business segment
FY 2010 First Three Quarters (Nine months ended September 30, 2010)

Diversified
Products

Tires(Yen in millions)Elimination or
Corporate

Total

Consolidated

Net sales:
External customers－

1,729,174

362,071

2,091,246

Inter-segment

1,459

7,194

8,654

(8,654)－

Total

1,730,634

369,266

2,099,900(8,654)2,091,246

104,019

9,436

113,456(50)

113,405

Operating income
Notes:

2,091,246

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.

(6) Notes regarding to significant changes in the amount of shareholders’ equity
Not applicable