Financial Resultsfor 1st Half of Fiscal 2016

Bridgestone Corporation
August 9, 2016

Contents

1. Business and Financial Performancefor 1st Half Fiscal 2016

P. 3

2. Consolidated Projections for Fiscal 2016

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１． Business and Financial Performancefor 1st Half of Fiscal 2016

Business Environment Surrounding Bridgestone Group◆ Estimated Tire Demand◆ Currency Exchange

Tire Demand for 2016 1st Half : Original Equipment (VS PY)
Passenger
Radial Tires
Japan

97％

103％

N. America

104％

82％

Europe105％

2015

Truck and Bus
Radial Tires

1st half2016
2nd half1st half

US Dollar

120

122

111

Euro134

135

124

112％

◆ Raw Materials
Tire Demand for 2016 1st Half : Replacement (VS PY)
Passenger
Radial Tires

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

Truck and Bus
Radial Tires

Japan

99％

101％

N. America

101％

103％

Europe102％103％

1st half

2nd half

1st half

Natural Rubber<TSR20>*(￠/kg)

146

127

126

Natural Rubber<RSS#3>*(￠/kg)

175

135

148

53

44

39

Crude Oil
<WTI>(＄/ｂｂl)Note: The numbers of demand are estimated by Bridgestone Corporation2016*Source: Singapore Commodity Exchange Limited
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Consolidated Results for 1st Half of Fiscal 2016
Yen/US dollar rate:

120111(9)

115

Yen/Euro rate:

134

124

(10)

127

(Yen in billions)

2015
2016
1st Half Results 1st Half Results

VS PY (%)

（Ref. Feb 17, 2016
announcement）
2016 1st HalfProjections

Net Sales

1,855.4

1,646.5(11)

1,770.0

Tires

1,555.2

1,352.7(13)

1,460.0

Diversified
Products

311.6

301.0

(3)

315.0

237.7

218.2

(8)

237.0

（Ratio） 12.8%（Ratio） 13.3%（Ratio）+0.4pt（Ratio） 13.4%

Tires

217.0198.6(9)216.0DiversifiedProducts

20.6

19.5(5)21.0

Ordinary Income

232.9

213.9

(8)

214.0

Extraordinary Loss (Gain)(10.1)

6.8+

Profit Attributable toOwners of Parent

144.6

123.3

(15)

128.0

Dividends per Share

60 yen70 yen +10 yen

70 yenOperating Income

Note: Figures within parentheses mean minus

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Analysis of Consolidated Operating Income for 1st Half of Fiscal 2016
(Yen in billions)
250

230

210

190

170

237.7

Price, Mix,
Volume etc.
(49.5)

150

ForeignExch. Loss(23.0)

218.2SGA(5.0)

Depreciation(2.0)

StrategicProducts+3.0

Raw
Materials+57.0

1301102015 1st Half
Operating Income(19.5)

2016 1st Half
Operating Income

Note: Figures within parentheses mean minus
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Financial Results for 1st Half of Fiscal 2016 : Geographic Segments(Yen in billions)2015
1st Half
Results2016
1st Half
Results

VS PY (％)

（Ref. Feb 17, 2016
announcement）
2016 1st HalfProjections

Japan

577.3

519.8

(10)

540.0

The Americas

958.2

822.2

(14)

900.0

EMEA

211.4

243.9

N/A*260.0

Other Regions

426.7

311.8

N/A*

330.0

Consolidated Net Sales

1,855.4

1,646.5(11)

1,770.0

Japan

93.4

67.7

(27)

70.0

The Americas

108.8

101.4

(7)

119.0

EMEA

8.5

13.9

N/A*

14.0

Other Regions

33.5

31.9

N/A*

34.0

Consolidated Operating Income

237.7

218.2

(8)

237.0

• 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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B/S Highlights for 1st Half of Fiscal 2016
(Yen in billions)

FY 2016 1st Half
(As of Jun. 30, 2016)

VS. Dec. 31, 2015

Total Assets

3,305.5(490.2)

Total Current Assets

1,598.1(210.4)

Total Fixed Assets

1,707.4(279.8)Net Assets
Ratio of total equity to total assets (%)

2,088.9
61.4(193.1)+3.2

Interest-Bearing Debt (Net)(14.9)(29.8)

2016
1st Half Results

VS. PY

74.6
93.0(29.2)(5.5)

Capital Expenditure
Depreciation
Note: Figures within parentheses mean minus

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２． Consolidated Projections for Fiscal 2016

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

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

Truck and Bus
Radial Tires

Japan

100％

101％

N. America

104％

82％

Europe105％

109％

Asia *1

102％

111％

100％

103％

N. America

100％

101％

Europe

100％

102％

108％

2nd half

FYUS Dollar

111100105115

Euro124

110117

127

Projections

Truck and Bus
Radial Tires

Japan

Asia *1

1st half◆ Raw Materials

Tire Demand for 2016 : Replacement (VS PY)
Passenger
Radial Tires(Ref.
Feb17,2016
announcement)

2016

104％

*
*

*1 Total of Thailand, Indonesia, India, and China
Note: The numbers of demand are estimated by Bridgestone Corporation*Source: Singapore Commodity Exchange Limited

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Consolidated Projections for Fiscal 2016
Yen/US dollar rate:

121

105(16)115

134

117(17)

127

2015
Results

2016
Projections

VS PY(%）（Ref. Feb 17, 2016
announcement）
2016 Projections

Net Sales

3,790.2

3,340.0(12)3,750.0

Tires

3,174.4

2,760.0(13)

3,100.0

DiversifiedProducts

635.0

590.0

(7)

650.0

517.2

453.0

(12)

520.0

（Ratio） 13.6%（Ratio） 13.6%（Ratio） (0.1pt)（Ratio） 13.9%

Tires

472.7

410.0

(13)

469.0

Diversified
Products

44.5

40.0

(10)

51.0

Ordinary Income

507.3

434.0

(14)

487.0

Profit Attributable toOwners of Parent

284.2

257.0

(10)

309.0

Dividends per Share

130 yen

140 yen+10 yen

140 yen（単位：億円）(Yen in billions)

Yen/Euro rate:

Operating Income

Note: Figures within parentheses mean minus
Copyright © 2016 Bridgestone Corporation | Aug. 9, 201611/14Analysis of Consolidated Operating Income for Fiscal 2016
(Yen in billions)Exchange rate
Sensitivity (full year)500

USD：3.4bil. Yen
EUR：0.4bil. Yen
450

400

517.2

ForeignExch. Loss(87.0)

350

Price, Mix,
Volume etc.
(55.2)

453.0

SGA(23.0)

Depreciation(8.0)

StrategicProducts
+15.0

Raw
Materials
+94.0

300

2015
Operating Income(64.2)

2016
Operating Income

Note: Figures within parentheses mean minus
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Summary
1st Half Actual

Full Year Revised Projections(”projection”; released at Feb. 17th)
CurrencyExchange ”FX”

- Stronger Japanese yen vs projection- Stronger yen vs PY and projection

1USD=111yen, 1EUR=124yen

2H; 1USD=100yen, 1EUR=110yen
FY; 1USD=105yen, 1EUR=117yen

Tire sales
volume- Increased from PY in PSR,
decreased in TBR- Steady sales in PSR strategic products- ORR Ultra-large/Large was still indownward phase- Inline with projection in PSR and slightly
weaker in TBR, higher than PY in both tires- Further enhancement of PSR strategic products- Still lower than PY in ORR Ultra-large/Large,
but will move into recovery phase after 2017

Selling Price/Raw Material- To secure appropriate price position by market- vs PY; Lower selling price due to lower raw material prices

SGA- Increased from PY exc. FX, for R&D
activities and sales promotion- Strategic spending for R&D activities andenhancement of comprehensive sales ability

Consolidated
FinancialResults- Operating income increased vs PY
exc. FX, with a good balance
between sales volume and quality ofbusiness- Better operating income than PY exc. FX,by volume growth, mix improvement andbetter conversion cost- Lean operation will offset weaker thanprojection sales and support financial results
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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 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, 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 ofnew information, future events or otherwise. Bridgestone disclaims any such obligation.
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