Bridgestone MTP2012

October 18, 2012 Bridgestone Corporation

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Section 1 . Positioning of MTP2012 . Basic approach to MTP2012 formulation . MTP2012 Target Performance Section 2 . MTP2012 outline . Initiatives to achieve Dan-Totsu

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Section 1 . Positioning of MTP2012 . Basic approach to MTP2012 formulation . MTP2012 Target Performance Section 2 . MTP2012 outline . Initiatives to achieve Dan-Totsu

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I. Positioning of MTP2012

MTP2011
Changes in the business environment

Future perspective

Rolling (revisions) Through Lean & Strategic concept

Short termBusiness foundation Mid/Long term: Differentiation

MTP2012
(Plan period: 2013 to 2017)
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Section 1 . Positioning of MTP2012 . Basic approach to MTP2012 formulation . MTP2012 Target Performance Section 2 . MTP2012 outline . Initiatives to achieve Dan-Totsu

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II. Basic approach to MTP2012 formulation

1st phase management reforms

2nd phase management reforms

SBU organization The Bridgestone Essence ROA 6% in 2012

Quick response to economic fluctuation

- Bottom-up - Communication - Teamwork

Changes in the business environment

Creation of new customer value Increasing uncertainty Hard to project Important turning point - Technology innovation - Business model innovation

The absolute and clear leader in Japanese, Dan-Totsu -- in the industry, far out-distancing our competitors
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II. Basic approach to MTP2012 formulation

Technology innovation
Guayule Russian Dandelion R&D facilities Japan: Kodaira Yokohama Americas: Akron Europe: Rome China: Wuxi

II. Basic approach to MTP2012 formulation

Business model innovation
Horizontal expansion of global business domain

Vertical expansion of supply chain Vertical expansion of supply chain

100% sustainable material concept

Air Free Concept

CAIS

Tire Printing Technology

Horizontal expansion of global business domain

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New tire

Tire, Conveyor Belt, HYD hose

Retread

Service & Maintenance

Service & Maintenance

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Section 1 . Positioning of MTP2012 . Basic approach to MTP2012 formulation . MTP2012 Target Performance Section 2 . MTP2012 outline . Initiatives to achieve Dan-Totsu

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III. MTP2012 Target Performance Management Target To achieve status as a true global corporation To achieve Dan-Totsu in all our industries Target Performance ROA More than 6%, improve further as target
Net Sales
Yearly average over 5% increase Operating income ratio Capital expenditure Yearly average 250 billion Yen, approximately 50% for tire strategic projects
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Assumption Exchange rate (vs. MTP2011) JPY 80/USD JPY5 appreciation JPY 105/Euro JPY5 appreciation

Achieve 10% as early as possible, improve further as target

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Section 1 . Positioning of MTP2012 . Basic approach to MTP2012 formulation . MTP2012 Target Performance Section 2 . MTP2012 outline . Initiatives to achieve Dan-Totsu

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Section 1 . Positioning of MTP2012 . Basic approach to MTP2012 formulation . MTP2012 Target Performance Section 2 . MTP2012 outline . Initiatives to achieve Dan-Totsu

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IV. MTP2012 outline

Tire demand assumptions
Passenger car radial tires OE+REP

Truck and bus radial tires OE+REP

100 Others

100

110

115 100 105

115

130

(105)

(120)

(130) Others (110) (125)

(140)

Japan Americas Europe

(100)

(105)

(105)

Japan Americas Europe

(100)

(105)

(110)

*Y12=100

OE = original equipment REP = replacement

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IV. MTP2012 outline

Assumption of exchange rate
Evolution of exchange rates
JPY

Evolution of SICOM market price

Prices will continue to trend higher

Continuing trend of a strong Japanese Yen

Assumption Exchange rate (vs. MTP2011) JPY 80/USD (JPY5 appreciation) JPY 105/Euro (JPY5 appreciation)

SICOM = Singapore Commodity Exchange

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IV. MTP2012 outline

Target Performance, Business growth by segment
ROA
3.6% 3.8% 6%+ 9.2%

MTP2012

ROA

Improve further as target

Net Sales OP margin

OP margin Achieve 10% as early as possible, improve further as target

Specialty tire

Diversified Products

Tire, Other regions Tire, Europe

6.3% 5.8% 3.1 T

3.0 T 2.9 T

Net Sales Yearly average over 5% increase

Tire, Americas

Tire, Japan

Y10

Y11

Y12

Y13

Y17

Tire, Americas: North America, Central and South America Tire, Other regions: Asia, Pacific, Middle East Asia, Africa, Russia
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Section 1 . Positioning of MTP2012 . Basic approach to MTP2012 formulation . MTP2012 Target Performance Section 2 . MTP2012 outline . Initiatives to achieve Dan-Totsu

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V. Initiatives to achieve Dan-Totsu Expand strategic tire products and businesses Reinforce fundamental competencies Make the most use of Vertical and horizontal expansion efficiencies Selection and concentration in diversified products business Enhance environmental activities, ecofriendly products and businesses
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V. Initiatives to achieve Dan-Totsu

Expand strategic tire products and businesses Passenger car tire PSR

Sales volume showing higher growth than that of overall PSR Run-flat technology tires (RFT) Expand replacement product lineup
Firehawk SZ90RFT

Replacement demand/sales growth: Y12Y17

Demand Sales

Ultra High Performance tires UHP Expand product lineup

TURANZA SERENITY Plus

PSR Total

Expand

Winter tire original technology products

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V. Initiatives to achieve Dan-Totsu

Expand strategic tire products and businesses

Truck and bus tires TBR

Global development of a solutions-based business utilizing retread tires Customers need

Safe operation Expense reduction
Differentiation Expansion

Resource saving

Societys need
Reduction of CO2 emissions

Manufacturing process of retread tires (Precured method)

of programs: Japan Eco Value Pack

Precured tread

of infrastructure in emerging countries

Development of future technology TRISAVER Tirematics

Significant

resource conservation and enhanced fuel efficiency

New compound for precured tread

New compound for tire case

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V. Initiatives to achieve Dan-Totsu

Expand strategic tire products and businesses

Specialty tires
Demand/sales growth (unit basis)
% Demand Sales

Large and ultra-large off-the-road radial tires for construction and mining vehicles (ORR) New plant in Thailand

Y12Y17

Start of production: Planned for Y2015 Capacity: Approximately 85 RRT*/day (Y2019) Total investment amount: 50 billion yen (Including steel cord expansion)

Deployment of new solution business

System of monitoring tire pressure and thermal management B-TAG (Bridgestone Intelligent Tag) is launched globally

Ultra-large / large ORR

Middle / small ORR

APR

ORR production volume growth (RRT basis)

New plant/Expansion

Existing plant
B-TAG: Bridgestone Intelligent Tag

*RRT: raw rubber tonnage

Y12
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V. Initiatives to achieve Dan-Totsu

Reinforce fundamental competencies

Specification optimization
New concept tire incorporates technologies that enhance safety and quality while reducing raw materials to conserve resources => To be deployed globally
Technologies in development to significantly improve wear
Tread rubber incorporating NANO PRO-TECH to enhance wear
IMAGE Carbon

Latest technology

Improve further

Denatured polymer tail

Technologies in development to enhance steel cord durability Improvement of side rubber durability Inhibit air permeability through inner liner

Conversion cost improvement

Develop new technologies which provide high productivity while maximizing the use of production capacity at existing plants
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V. Initiatives to achieve Dan-Totsu

Make the most use of Vertical and horizontal expansion efficiencies

Vertical expansion Upstream: Internal raw material manufacturing facilities

Development and production of strategic raw materials # facilities Natural rubber Farm 3 1 3 5 3 25% 25% 65% 25% Processing plant Synthetic rubber Steel cord Carbon black Ratio

Downstream Retail channel & service facilities

Providing products and services through optimum business models so as to contribute to Group profit

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V. Initiatives to achieve Dan-Totsu

Make the most use of Vertical and horizontal expansion efficiencies
Country China Vietnam Emerging Thailand India Poland Japan Mature Location Wuxi Tianjin Hai Phong Rayong Pune Poznan Stargard Hofu Kitakyusyu Aiken Country U.S.A Warren Country Exp/GF Expansion Green Field Green Field Green Field Expansion Expansion Expansion Green Field Expansion Product PSR PSR PSR ORR PSR TBR PSR TBR ORR ORR PSR/LTR PSR/LTR ORR ORR TBR

Horizontal expansion
Capacity +4.1 KU/day +8.8 KU/day +24.7 KU/day +52.0 RRT/day +33.0 RRT/day +10.0 KU/day +1.0 KU/day +2.0 KU/day +5.6 KU/day +1.35 KU/day +12.0 RRT/day +20.0 RRT/day +4.75 +8.0 +40.0 +90.0 +0.9 KU/day KU/day RRT/day RRT/day KU/day Completion 2013 2014 2016 2018 2019 2014 2015 2017 2014 2014 2014 2014 2013 2015 2015 2020 2013

RRT: raw rubber tonnage

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V. Initiatives to achieve Dan-Totsu

Selection and concentration in diversified products business Diversified product business Expansion of businesses by leveraging their competencies
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(Anti-vibration, Belt, Hose, Rubber Crawler Tracks, Seismic Isolation Rubber)

Rubber

Core 15 competencies of diversified product Reinforce business ment Adhesion

materials

East Japan Railways Company

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V. Initiatives to achieve Dan-Totsu

Selection and concentration in diversified products business Diversified product business in Americas Expansion of business model in building products
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Globalization of air springs

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V. Initiatives to achieve Dan-Totsu

Enhance environmental activities, eco-friendly products and businesses

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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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