Slides
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August 8, 2025 Financial Results for 1st Half of Fiscal 2025 Bridgestone Corporation Global CFO and Executive Director, G Finance Bridgestone Corporation Naoki Hishinuma
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2/12 3 11 ･･･ ･･･ 1. Business and Financial Performance for 1st Half of Fiscal 2025 2. Fiscal 2025 Guidance
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3/12 1. Business and Financial Performance for 1st Half of Fiscal 2025
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4/12 2024 1H Results 2025 1H Results vs. PY (%) 1Q vs. PY (％) 2Q vs. PY(％) Revenue 2,176.8 1,058.1 (1) 1,058.3 (5) 2,116.4 (3) Adjusted Operating Profit 229.2 111.4 (7) 123.2 +13 234.6 +2 Margin 10.5% 10.5% (0.8) pp 11.6% +1.8 pp 11.1% +0.6 pp Profit Attributable to Owners of Parent 199.1 75.9 (12) 39.6 (65) 115.5 (42) -Continuing Operations 199.1 75.7 (13) 39.5 (65) 115.2 (42) -Discontinued Operations (0) 0.2 - 0.1 - 0.3 - USD/JPY ¥152 ¥153 ― ¥145 ― ¥148 ― EUR/JPY ¥165 ¥160 ― ¥164 ― ¥162 ― Consolidated Financial Results for 1st Half of Fiscal 2025 (Yen in billions) (*1) Revenue and Adjusted Operating Profit show figures for continuing operations and exclude revenue and expenses of the discontinued operations. (*1) (*1) (*2) Excluding the gain on the sales of fixed asset recorded in the 2nd quarter of the previous year (approximately 63 billion yen), the year-on-year change is (25). (*2)
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5/12 Analysis of Adjusted Operating Profit for 1st Half of Fiscal 2025 (vs. PY) 0.0 50.0 100.0 150.0 200.0 250.0 300.0 (Yen in billions) 2025 1H 2024 1H +5.5 billion yen ー 1.5 billion yen excl. FX Price +15.0 Volume (4.0) Currency +4.0 Operation Expenses +30.0 Raw Materials (29.0) 234.6 Others (17.5) 229.2 Conversion Costs (1.0) L. America business (1.0) MIX +9.0 -UPI (margin impact) (18.0) Incl. positive price impact from market-linked contracts +13.0 Effect of improvement in Genba operation at production sites +12.0 Incl. Argentina +3.0 Brazil (4.0) Business cost reduction • Return from business rebuilding • Business cost reduction Return from business rebuilding• Return from business rebuilding • Business cost reduction
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6/12 Consolidated Financial Results by Segment for 1st Half of Fiscal 2025 2024 1H Results 2025 1H Results vs. PY (％) Japan Revenue 586.7 603.7 +3 Adjusted OP 94.1 82.5 (12) Margin 16.0% 13.7% (2.4) pp Asia, Pacific, India and China Revenue 260.5 246.8 (5) Adjusted OP 27.8 29.2 +5 Margin 10.7% 11.8% +1.1 pp Americas Revenue 1,093.0 1,025.9 (6) Adjusted OP 88.3 91.8 +4 Margin 8.1% 8.9% +0.9 pp Europe, Middle East and Africa Revenue 411.1 411.3 +0 Adjusted OP 7.4 18.5 +151 Margin 1.8% 4.5% +2.7 pp (Yen in billions)
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7/12 2024 1H Results 2025 1H Results vs. PY (％) Revenue 1,211.5 1,177.7 (3) Adjusted OP 128.3 124.1 (3) Margin 10.6% 10.5% (0.0) pp Revenue 489.8 485.2 (1) Adjusted OP 24.6 40.9 +67 Margin 5.0% 8.4% +3.4 pp Revenue 319.7 310.1 (3) Adjusted OP 72.1 65.7 (9) Margin 22.6% 21.2% (1.4) pp Revenue 155.8 143.4 (8) Adjusted OP 4.2 3.9 (8) Margin 2.7% 2.7% (0.0) pp Consolidated Financial Results by Product for 1st Half of Fiscal 2025 PS/LT TB Specialties （OR/AC/AG/MC） Diversified Products Business (incl. retail & credit card business) (incl. retread business) (Yen in billions)
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8/12 vs. PY (%) Revenue: 143.4 (8) Adjusted OP: 3.9 (8) Margin: 2.7% (0.0)pp vs. PY (%) Revenue: 77.3 (7) Adjusted OP: 3.4 (17) Margin: 4.4% (0.5)pp Sports & Cycle Biz vs. PY (%) Revenue: 31.5 (3) Adjusted OP: (0.8) - Margin: (2.4)% (2.4)pp vs. PY (%) Revenue: 32.1 (13) Adjusted OP: 1.4 - Margin: 4.3% +4.0pp Chemical & Industrial Products Biz Consolidated Financial Results by Business for 1st Half of Fiscal 2025 (Diversified Products Business) Diversified Products Biz in Americas (Air Springs) Diversified Products Business (Yen in billions)
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9/12 (Yen in billions) Adjustment Items 70.2 N. America TB tire plant rebuilding +27.4 EU TB・Retread・AG tire plant rebuilding +19.6 L. America business rebuilding +9.6 N. America AG tire plant/business footprint optimization +5.4 Others +8.2 Adjustment Items for 1st Half of Fiscal 2025 Revenue 2,116.4 Adjusted Operating Profit 234.6 Adjustment Items 70.2 Operating Profit 164.5 Profit Before Tax 155.4 Profit from Continuing Operations 115.2 Profit from Discontinued Operations 0.3 Profit Attributable to Owners of Parent 115.5 2025 1H Results (Yen in billions) (*1) (*1) Income is in minus and expenses are in plus for Adjustment Items breakdown (*2) “Profit / loss Attributable to Owners of Parent” (*1) (*2) (*2)
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10/12 B/S and C/F Highlights for 1st Half of Fiscal 2025 2024 Results (as of Dec 31, 2024) 2025 1H Results (as of Jun 30, 2025) vs. Dec 31, 2024 Total Assets 5,723.5 5,481.1 (242.4) Cash and cash equivalents 706.7 690.9 (15.9) (monthly sales) 1.9 months 2.0 months +0.0 months Inventories 945.3 917.0 (28.3) Finished products 599.8 597.6 (2.2) Total Liabilities 1,937.0 1,943.4 +6.4 Interest-Bearing Debt 〈Gross〉 727.7 795.5 +67.7 Total Equity 3,786.5 3,537.7 (248.8) Equity Ratio (%) 65.2% 63.6% (1.6)pp Exchange Rate at the end of reporting period USD/JPY ¥158 ¥145 (¥13) EUR/JPY ¥165 ¥170 +¥5 2024 1H Results 2025 1H Results vs. PY Cash Flows from Operating Activities 211.5 279.1 +67.6 Cash Flows from Investing Activities (102.7) (120.9) (18.2) Free Cash Flow 108.9 158.2 +49.4 Capital Expenditure 151.1 137.9 (13.2) Depreciation and Amortization 172.7 176.2 +3.5 (52.6) Capital Policy (Financial Activities) (February announcement) ⚫ Company has determined to acquire Treasury Stock of JPY 300 billion (max.), an investment that contributes to enhancing corporate value and as a measure toward optimal capital structure (capital efficiency). ⚫ As part of the initiatives to contribute building an optimal capital structure and increase corporate value(*2) by decreasing WACC (expansion of ROIC- WACC Spread) while maintaining the industry-leading credit ratings, we plan to raise funds at the level of 200 billion yen through straight corporate bonds, etc. (*2) “Profitability Improvement” “Growth Investments” “Financial Strategy” are the keys to commit Corporate Value Enhancement Steadily promoting Debt Financing and Share Buybacks Debt Financing (raising fund) Implemented in Apr: - 100 billion yen in straight bonds - 60 billion yen syndicated loan Share Buybacks Progressing as planned <Progress rate based on actual amount(*3)> As of the end of June: approx. 36% (As of the end of July: approx. 47%) (*3) Progress rate against the total share buyback amount of 300 billion yen (maximum) resolved at the Board meeting on February 17th (*1) excl. FX vs. Jun 30, 2024 (Yen in billions) (*1)
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11/12 2. Fiscal 2025 Guidance
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12/12 No Change from February guidance ◼ Counter the direct impact of U.S. tariffs ー Impact on AOP has been revised from 45 billion yen level (May guidance) to 25 billion yen level (August guidance) ◼ Risks & opportunities not incorporated into fiscal 2025 guidance: U.S. : Reinforce and accelerate commercial business. Accelerate consumer tire business rebuilding, especiallyexpand sales in FS EU : Focus on premium - expand sales. Accelerate the benefit of rebuilding OR : Take in opportunity of sales expansion in mid & small tires Benefit creation from further acceleration of Business restructuring & rebuilding (2nd stage), steady business cost reduction activities. Indirect impact such as a potential economic downturn in U.S. etc. - Impact on AOP has been revised from20 billion yen level(May disclosure) to 10 billion yen level (August disclosure) Delay in rebuilding of Diversified products business ◼ Dividend : Maintain MIN 230 yen per share (forecast), +20 yen vs. PY Even if unincorporated risk such as an economic downturn in U.S. at 10billion yen level materialize, 230 yen per share will be maintained. ◼ Capital Policy : The capital policy announced in Feb (300 billion yen in share buybacks and 200 billion yen in debt financing) will be implemented as planned. 2024 Results 2025 Guidance (Feb 17, 2025 Announcement) vs. PY（%） Revenue 4,430.1 4,330.0 (2) Adjusted Operating Profit 483.3 505.0 +4 Margin 10.9% 11.7% +0.8pp Profit Attributable to Owners of Parent 285.0 253.0 (11) ROIC 8.2% 9.2% +1.0pp ROE 8.1% 7.2% (0.9)pp Dividend per share ¥210 ¥230 +¥20 Fiscal 2025 Guidance (Yen in billions) Opportunities Potential for further acceleration Risk High uncertainties
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13/12 Copyright © Bridgestone Corporation Statements made in this presentation with respect to Bridgestone's current plans, estimates, strategies and beliefs 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, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included 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 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 information, future events or otherwise. Bridgestone disclaims any such obligation.
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14/12 PSR/LTR TBR OE REP OE REP Japan 108% 104% 100% 114% N. America 94% 100% 81% 109% Europe 92% 102% 96% 100% (*1) Source: Singapore Commodity Exchange Limited Estimated by Bridgestone Tire Demand for 1H of 2025 (unit base% vs. PY) (*2) Market Trend of Natural Rubber and Crude Oil (average) vs. PY Global (OE+REP) 103% REP 106% PSR/LTR HRD(18”+) vs. PY Ultra-Large（REP） 99% Large 103% OE 130% REP 95% Small & Medium 101% OE 96% REP 105% (*) As for TBR, figures of China is excluded from 2024. ORRTire Sales Growth for 1H of 2025 (vs. PY) (*2) Member Demand：Tire Brands (excl. imports) which participates in U.S. / Canadian Tire Manufacturers Association(*3).Total demand including non-members is as follows. PSR/LTR REP：103%, TBR REP：108% (*3) USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) A P P E N D I X Global 95% 100% / Japan 94% 110% Asia, Pacific, India, China 107% 97% N. America 88% 98% Europe 82% 105% vs. PY Global (OE+REP) 99% PSR/LTR TBR vs. PY 99% 94% 101% 103% 115% 76% 93% 93% 110% 98% 100% OE REP OE REP (*2) 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Natural Rubber 〈TSR20〉(*1)（￠/kg） 157 168 175 196 197 168 Natural Rubber 〈RSS#3〉(*1)（￠/kg） 214 230 238 247 240 220 Crude Oil 〈WTI〉（$/bbl） 77 78 74 69 71 64