Consolidated Financial Statements
for the First Half of the Fiscal Year Ending December 31, 2018
August 9, 2018
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, the original
Japanese-language supersedes this English translation.
Bridgestone CorporationStock exchange listings: Tokyo, Nagoya, Fukuoka
Code number:5108
URL:https://www.bridgestone.com/
Representative: Masaaki Tsuya, Chairman of the Board
CEO and Representative Executive Officer
Contact:
Masahiro Kuroki, Treasurer, General Manager
Telephone:+81-3-6836-3100
Scheduled date of quarterly securities report submission:
August 9, 2018
Scheduled date of dividend payment commencement:
September 3, 2018
Supplementary information for the quarterly financial statements to be prepared:
Yes
Meeting to explain for the quarterly financial statements to be held:
Yes(All amounts are rounded down to the nearest million yen)

1. Consolidated Results for the First Half of Fiscal 2018 (January 1, 2018 - June 30, 2018)(1) Consolidated Operating Results(Percentage figures represent changes from the same period of previous year)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent

Yen in millions

Six months ended
1,775,408
June 30, 2018
Six months ended
1,742,847
June 30, 2017(Note) Comprehensive Income:%Yen in millions%

Yen in millions%

Yen in millions%

1.9

199,434(1.4)

190,764(2.6)

134,618

2.15.8202,340(7.3)

195,827(8.5)

131,8396.9

Six months ended June 30, 2018
Six months ended June 30, 2017

Net income
per share
Six months ended
June 30, 2018
Six months ended
June 30, 2017

¥ 45,915 million [(66.3)%]¥136,076 million [－%]

Diluted net income
per share
Yen

Yen

179.08178.76169.83169.53(2) Consolidated Financial Position
Total assets

Ratio of total equity tototal assets

Net assets

Yen in millions

Yen in millions%

As of June 30, 2018

3,789,530

2,382,482

61.4

As of December 31, 20173,959,038

2,402,738

59.2

As of June 30, 2018
As of December 31, 2017

¥2,326,419million¥2,342,147million(Reference) Total equity:

2. Dividends
1st quarterend

2nd quarter
end

Yen

Yen

Annual Dividend
3rd quarter
end
Yen

－
70.00
－
FY 2017－80.00
FY 2018
FY 2018－(Projection)(Note) Changes from the latest forecasts released: NoYear -end

Total

Yen

Yen

80.00

150.0080.00

160.003. Consolidated Projected Results for Fiscal 2018 (January 1, 2018 - December 31, 2018)(Percentage figures represent changes from the same period of previous year)
Profit attributable toNet income
Operating income
Ordinary income
owners of parentper share

Net sales

Yen in millions%

Yen in millions%

Yen in millions%

YenFY 2018
3,700,000
1.6430,000(Note) Changes from the latest forecasts released: Yes

Yen in millions%

2.6403,000

0.6305,000

5.8405.73

* Notes(1) Changes in principal subsidiaries during the six months ended June 30, 2018 : No
(Changes in specified subsidiaries involving change in consolidation scope)(2) Application of special accounting treatments for consolidated quarterly financial statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and restatements
1) Changes due to revisions of accounting standards, etc. : Yes
2) Changes in accounting policy other than 1): No3) Changes in accounting estimates: No4) Restatements: No(4) Outstanding number of shares (common stock)
1) Outstanding number of shares at period end (including treasury stock):
June 30, 2018
761,536,421 shares
December 31, 2017
813,102,321 shares
2) Number of shares of treasury stock at period end:
June 30, 2018December 31, 2017

9,793,592 shares
61,375,611 shares

3) Average outstanding number of shares (during the first half):
First Half ended June 30, 2018751,733,584 sharesFirst Half ended June 30, 2017776,290,082 shares* Implementation status about the quarterly review
These financial statements are exempt from quarterly review.
* Statement regarding appropriate use of forward-looking statements and other notes
Projections of consolidated results for fiscal 2018 announced on February 16, 2018 are revised in this document.
The preceding descriptions of projections and plans are “forward-looking statements,” which involve known andunknown risks and uncertainties. These variables could cause the Bridgestone Group’s actual performance andfinancial results to differ substantially from management’s projections and plans, and the statements are notguarantees of future business performance.

Bridgestone Corporation (5108)

First half results of fiscal 2018

[Index]Consolidated Financial Statements and Other Information (Notes)…P2(1) Consolidated Balance Sheet…P2(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income…P4

Consolidated Statement of Income…P4

Consolidated Statement of Comprehensive Income…P5(3) Notes to the Consolidated Financial Statements…P6(Notes regarding going concern assumption)…P6(Notes regarding significant changes in the amount of shareholders’ equity)…P6(Application of special accounting treatments for Consolidated Quarterly Financial Statements)…P6(Changes in accounting policies, Changes in accounting estimates and Restatements)…P61

Bridgestone Corporation (5108)

First half results of fiscal 2018

Consolidated Financial Statements and Other Information (Notes)(1) Consolidated Balance Sheet(Yen in millions)
FY 2017

FY 2018 1H(As of December 31, 2017)(As of June 30, 2018)

Cash and deposits

511,895

422,407

Notes and accounts receivable

503,412562,904

Short-term investments

221,680

158,480

Merchandise and finished products

397,253

413,741

Work in process

36,78738,993

Raw materials and supplies

156,142

157,039

AssetsCurrent Assets

Other

176,926

176,664

Allowance for doubtful accounts(17,062)(22,185)

1,987,036

1,908,047

Buildings and structures, net

555,770

546,732

Machinery, equipment and vehicles, net

517,639

496,474

Other, net

399,636

381,179

1,473,046

1,424,386

Goodwill

43,781

39,551

Other

61,24859,833

Total Intangible fixed assets

105,029

99,384

Investments in securities

278,802

243,113

Other

116,714

115,966

Total Current Assets
Fixed Assets
Tangible fixed assets

Total Tangible Fixed Assets
Intangible fixed assets

Investments and other assets

Allowance for doubtful accounts(1,591)(1,367)

Total Investments and Other Assets

393,925

357,712

Total Fixed Assets

1,972,002

1,881,483

Total Assets

3,959,038

3,789,5302Bridgestone Corporation (5108)

First half results of fiscal 2018

(Yen in millions)
FY 2017

FY 2018 1H(As of December 31, 2017)(As of June 30, 2018)

Liabilities
Current Liabilities
Notes and accounts payable

232,698

232,802

Short-term borrowings

124,606

122,881

Current portion of bonds

20,000―

Lease obligations

14,117

17,584

Income taxes payable

66,45325,653―

7,526

Accounts payable-other169,144

134,190

Other283,526

252,236

Total Current Liabilities

910,545792,874

Bonds

220,000

220,000

Long-term borrowings

51,72847,826

Lease obligations

28,57627,497

Provision for reorganization of R&Dand manufacturing base

8,322

―

Net defined benefit liability

202,864

193,456

Other

134,263

125,393

Total Long-term Liabilities

645,754614,173

1,556,300

1,407,048

126,354

126,354

Provision for reorganization of R&D
and manufacturing baseLong-term Liabilities

Total Liabilities
Net Assets
Shareholders' Equity
Common stock
Capital surplus

122,984

122,078

Retained earnings

2,342,822

2,265,927

Treasury stock-at cost

(206,052)(32,872)

Total Shareholders’ Equity

2,386,108

2,481,487

176,686

151,399

(55)

1,610

Accumulated Other Comprehensive IncomeNet unrealized gain(loss) on
available-for-sale securities
Deferred gain(loss) on derivative instruments
Foreign currency translation adjustments(93,479)(171,299)

Remeasurements of defined benefit plans(127,112)(136,778)

Total Accumulated Other Comprehensive
Income(43,960)(155,067)

3,629

3,604

Stock Acquisition Rights
Non-controlling Interests

56,96152,457

Total Net Assets

2,402,738

2,382,482

Total Liabilities and Net Assets

3,959,038

3,789,530

3

Bridgestone Corporation (5108)

First half results of fiscal 2018

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
First Half

(Yen in millions)
FY 2017 1H

FY 2018 1H(Six months ended
June 30, 2017)(Six months ended
June 30, 2018)

Net Sales

1,742,847

1,775,408

Cost of Sales

1,068,137

1,089,608

Gross Profit

674,709685,799

Goods freightage expenses

82,04988,766Advertising and promotion expenses

59,16358,278

Salaries, allowances and bonuses

128,781

132,178

Retirement benefit expenses

11,002

10,940Depreciation

16,28017,389Research and development expenses

49,06349,382Other126,028

129,430

Total Selling, General andAdministrative Expenses

472,369

486,365

Operating Income

202,340

199,434

Interest income

2,144

2,582

Dividend income

5,768

5,153

Other

9,968

11,494

Total Non-operating Income

17,881

19,230

5,172

7,226

Selling, General and Administrative Expenses

Non-operating Income

Non-operating Expenses
Interest expense
Foreign currency exchange loss

5,347

4,911

Other

13,875

15,762

Total Non-operating Expenses

24,39427,900Ordinary Income

195,827

190,764

4,484―

3,123―

7,607―

188,219

190,764

Extraordinary Loss
Loss related to civil litigation in the Americas
Expenses related to relocation of head officeof Americas Operations
Total Extraordinary Loss
Income before Income Taxes andNon-controlling Interests
Income Taxes

52,32951,679

Income before Non-Controlling Interests

135,889

139,084

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of Parent

44,0504,465

131,839

134,618

Bridgestone Corporation (5108)

Consolidated Statement of Comprehensive Income
First HalfFirst half results of fiscal 2018

(Yen in millions)
FY 2017 1H

FY 2018 1H(Six months ended
June 30, 2017)(Six months endedJune 30, 2018)

Income before Non-controlling Interests

135,889

139,084

7,753(25,270)

1,311

5Foreign currency translation adjustments(18,521)(78,992)

Remeasurements of defined benefit plans

10,283

11,193

Share of other comprehensive income inaffiliates

(640)

(104)

Other Comprehensive Income (loss)
Unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivative instruments

Total Other Comprehensive Income
Comprehensive Income

186(93,168)

136,076

45,915

132,866

44,390

3,209

1,525

Comprehensive income attributable to:
Owners of parentNon-controlling interests

5Bridgestone Corporation (5108)

First half results of fiscal 2018

(3) Notes to the Consolidated Financial Statements(Notes regarding going concern assumption)
Not applicable(Notes regarding significant changes in the amount of shareholders’equity)
The company has completed cancellation of its own shares (51,565,900 shares) on January 19, 2018, basedon the resolution at the board of directors held on February 17, 2017. As a result, capital surplus decreased by¥905 million compared with the end of the previous fiscal year, to ¥122,078 million, retained earnings decreasedby ¥172,220 million compared with the end of the previous fiscal year, to ¥2,265,927 million, and treasury stockat cost decreased by ¥173,126 million compared with the end of the previous fiscal year, to ¥32,872 million.

(Application of special accounting treatments for Consolidated Quarterly Financial Statements)
Calculation for income tax expenses
Income tax expenses was calculated based upon an estimated effective tax rate for fiscal 2018.

(Changes in accounting policies, Changes in accounting estimates and Restatements)
Changes in accounting policies(Adoption of Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income)The certain overseas subsidiaries have early adopted ASU No. 2018-02, "Reclassification of Certain Tax Effects
from Accumulated Other Comprehensive Income (revised on February 14, 2018)" from the beginning of fiscal
2018.
Changes in deferred tax assets and deferred tax liabilities resulting from change in tax rate following theenactment of the “Tax Cuts and Jobs Act” by the U.S. federal government on December 22, 2017 were includedin the accumulated consolidated net profit of the previous fiscal year. On the other hand, changes in tax effects
above recognized through accumulated other comprehensive income were stranded in accumulated othercomprehensive income in the previous fiscal year. Due to the adoption of "Reclassification of Certain Tax Effects
from Accumulated Other Comprehensive Income", subsidiaries reclassified stranded tax effects resulting fromchange in tax rate above from accumulated other comprehensive income to retained earnings. In accordancewith the transitional treatment prescribed in this accounting policy, reclassification was made at the beginningof fiscal 2018.
As a result, retained earnings increased by ¥20,879 million and remeasurements of defined benefit plansdecreased by ¥20,879 million at the beginning of fiscal 2018. This change in accounting policy have no effecton consolidated statement of income for the first half of fiscal 2018.

6