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Summary of Financial Results 2024 / Business Plan for 2025 Bridgestone Corporation Member of the Board Global CEO and Representative Executive Officer Shu Ishibashi February 17, 2025
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2/29 Business plan for 2025 Summary of Financial Results for 2024
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3/29 Summary of 2024 consolidated financial results Thoroughly improve management quality and working & business quality: Bridgestone’s unique Deming Plan PS | REP-HRD 105 TB | REP 102 OR | Ultra-large 100 AC 108 2024 Business environment • Structure changes in the automotive industry due to the rise of Chinese EVs etc. • Structure changes in the tire industry caused by an increase in low-end imports (especially in L. America & Europe) 2024 full year global sales volume (vs. PY) Revenue: Approx. 4.4T JPY 103% Adj. operating profit: 483.3B JPY 101% Adj. operating profit margin: 10.9% (0.2)% Profit from continuing operations: 285B JPY 87% - Adjusted items: Rebuilding costs of approx.100 B JPY ROIC: 8.2% (0.5)% vs. PY ROE: 8.1% (2.3)% vs. PY Shareholder return: 210 JPY per share (forecast) Accelerate the reinforcement of initiatives for global business cost reduction: 2024 Total 75B JPY（vs. PY） Level to achieve 24MBP target (approx. 100 B JPY) 1 year ahead of schedule Landed below fiscal guidance of August 2024 Premium focus globally for continuous improvement in sales mix Launched business restructuring & rebuilding (2nd stage) Further reinforce in 2025 Remaining issues in speed of performance recovery particularly in Brazil Management issues in Japan tire business and diversified products business 2025 as ”The year of Emergency and Crisis Management”: Toward growth with quality, reinforce “defense” while pursuing “offense” initiatives to lay foundation for future growth “New threats” Acceleration of tire industry structure changes Summary of 2024 consolidated financial results No changes from February guidance Increased in both revenue and adjusted operating profit vs. prior year Business restructuring & rebuilding (2nd stage) “Reinforce Earning Power” Reinforce business quality Maintain and reinforce a solid foundation of premium tire business Secure solid sales and improve sales mix globally Expand Commercial BtoB solutions (vs. prior year)
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4/29 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 2015 2019 2020 2021 284.3 240.1 -19.8 307.9 2022 305.4 13.3％ 10.0% -0.9% 12.9% 10.9% 2023 326.9 10.4% 2024 3,790.3 3,507.2 2,695.2 3,246.1 4,110.1 4,313.8 130 160 110 170 175 200 210 (plan) 7.5% 6.8% -0.7% 9.5% 7.4% 7.6% 14.7％ 7.4% 5.1% 9.0% 9.4% 8.7% 24MBP21MBP Summary of 2024 consolidated financial results: Global overview 152 JPY 164 JPY 4,430.1 8.2% 8.1% 285.0 6.4% 121 JPY 134 JPY 109 JPY 122 JPY 107 JPY 122 JPY 110 JPY 130 JPY 343.1 517.2 482.6394.3 207.4 13.6% 9.8% 7.7% 12.1% 11.7% 132 JPY 138 JPY 141 JPY 152 JPY 480.6 11.1% 10.9% 483.3 B JPY 2024 forecast（August 2024 guidance） Currency exchange USD=146JPY / EUR=157JPY 2024 results Revenue 4,410 B JPY 4,430.1B JPY Adj. operating Profit 490 B JPY 483.3B JPY Adj. operating profit margin 11.1% 10.9% ROIC 8.9% 8.2% ROE 9.8% 8.1% Adj. items -11.3 B JPY 40.0 B JPY Profit from continuing operations 336B JPY 285B JPY Dividend per share 210 JPY (plan) 210 JPY (plan） • Adj. items: For August 2024 guidance, anticipated to be favorable by a gain on the sale of assets (Roppongi company housing) For actuals - approx. 100 B JPY were recorded due to early launch of rebuilding and write-off of production equipment of TB and retail in Europe in 4Q. Return to a strong Bridgestone capable of adapting to change Currency Exchange USD EUR Adj. Operating Profit [B JPY] Adj. Operating Profit Margin[%] Profit from continuing operations [B JPY] ROE Dividend per share [JPY] Profit margin from continuing operations [%] ROIC Revenue [B JPY] USD=152 JPY EUR=164 JPY Remaining issues New issues 2025 “Enhance business quality” “Strong business quality” Build foundation toward the “true next stage” 2026 “True next stage” toward “Growth with quality”
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5/29 Summary of financial results for 2024 ―Priority Management Issues Area
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6/29 North America | Summary of financial results for 2024 / Business plan for 2025 898.0B JPY 105% of PY 123.7B JPY 112% of PY +0.9% vs. PY Promote profitability improvement through optimization of business footprints & costs Rebuild consumer tires business in the U.S. “Multi-brand strategy” : Aligning with the evolution of channel, focus on strengthening “Dan-Totsu product” as the core to start the growth phase. • BS: Maintain focus on premium Launch new ENLITEN products • FS: Revitalization ≫Launch new products ≫Align with reinforcement of retail equity stores networks Reinforce TB-REP business: Integrate retread, mobility solutions, and maintenance services to strengthen the fleet business, while building a structure for customer success. Increase Bridgestone brand sales volume & share, while improving sales mix Restart “Growth with quality” 14.8 11.2 13.5 14.0 Y23 1H Y23 2H Y24 1H Y24 2H2023 1H 2023 2H 2024 1H 2024 2H Business plan for 2025 2024 13.8% Increased in both revenue and profit vs. prior year with the tailwind from the currency exchange Reduced in overall sales volume (vs. PY) in PS while promoting continuous improvement in sales mix in premium tire business in total. Bridgestone brand sales: Achieved increase in sales units & market share vs. prior year • PS-REP U-HRD (20 inch & above) increased sales -112% of prior year • TB-REP increased sales -108% of prior year toward a recovery trend - Reinforce strong business foundation Maintained and reinforced a solid foundation of premium tire business Secure AOP14％ level despite in challenging businessenvironment N.America–Premium tire business Core business N. America business in total 1,857.8B JPY 106% of PY 183.9B JPY 105% of PY 2024 (0.1)% vs. PY9.9％ Revenue （2023-2024: single period) Summary of 2024 Adj. Operating Profit Adj. Operating Profit Margin Premium tire business Adj. Operating Profit Margin Revenue Adj. Operating Profit Adj. Operating Profit Margin Increase in revenue and profit vs. prior year
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7/29 322.2B JPY 97% of PY (3.7)B JPY (41.0)B JPY of PY (12.4)% vs. PY 55.3B JPY 101% of PY (0.1)B JPY (21.4)B JPY of PY (38.8)% vs. PY(0.2)% Despite overcoming the worst phase in Argentina, business deterioration in Brazil continues117.1B JPY 89% of PY (8.9)B JPY (13.5)% vs. PY (16.6)B JPY of PY (7.6)% 12.4% 1.5% 9.4% ▲2.2% 48.9% 43.9% 38.2% 34.9% (1.2)％ Brazil 2024 Argentina (After application of hyperinflationary accounting) 2024 Summary of 2024 Business plan for 2025 Argentina • On an operational performance excluding impacts from hyperinflationary accounting Stabilized by promoting damage control from 2H Improved to the break-even level Brazil • Insufficient measures against structural changes caused by an increase in low-end imports as ”new threats” leads continuous deficit Latin America | Summary of financial results for 2024 / Business plan for 2025 Revenue Adj. Operating Profit Adj. Operating Profit Margin Revenue Adj. Operating Profit Adj. Operating Profit Margin （2023-2024: single period) Before application of hyperinflationary accounting After application of hyperinflationary accountingAdj. Operating Profit Margin 0% 2023 1H 2023 2H 2024 1H 2024 2H Adj. Operating Profit Margin Latin America business in total 2024 Revenue Adj. Operating Profit Adj. Operating Profit Margin Decrease in revenue and profit vs. prior year Turn deficit Further reinforce the rebuilding of “Transform the shape of L.America business” January-: Launched rebuilding including reduction in plant production capacity & workforce in Argentina & Brazil
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8/29 701.5B JPY 102% of PY 21.8B JPY 269% of PY 3.1％ +1.9% vs. PY “Transform the shape of Europe business” “Integrated & simplified” Continued focus on premium and started performance improvement by rebuilding (2nd stage) in 2024 Continue ensuring a focus on premium, improved mainly in PS-REP • Optimized manufacturing footprints: Intention of closure of Lanklaar plant, Belgium (in 2024) to be consolidated to 1 plant in Poland • TB REP • Write-offs of assets, operational improvement at Genbutsu- Genba, rebuilding started to generate benefits Increased profit / Reduced deficit vs. prior year – Rebuilding Loss-making business Focus on premium Further reinforce the assessment of rebuilding (2 nd stage) Focus on “quality” 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2.1% 0.3% 1.0% 5.1% Summary of 2024 Premium tire Increased revenue & profit vs. prior year Continued expansion in sales volume of HRD and improved sales mix Particularly, in U-HRD (above 20 inch) - sales volume was 124% of PY, increased market share. • PS REP Increased profit vs. prior year / Reduced deficit Expanded sales volume vs. PY (BS brand was105% of PY) Reinforce fleet business aligned with new products & retread, and accelerate rebuilding. Retread Retail Increased profit / Reduced deficit vs. prior year Europe | Summary of financial results for 2024 / Business plan for 2025 Revenue Adj. Operating Profit Adj. Operating Profit Margin Adj. Operating Profit Margin 2023 1H 2023 2H 2024 1H 2024 2H Business plan for 2025 2024 Europe business Increase in revenue and profit vs. prior year Overcame the worst phase • TB • Retail • Retread Aim to become profitable in 2025
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9/29 Expanded solutions on top of solid sales (sales volume of ultra-large tires: 100% vs. prior year), despite the negative impacts from the raw material prices and exchange rate fluctuation on the pricing scheme Expect a solid sales in all categories of ultra-large, large, and small & medium tires OR AC MC *OR: Off-the-road tires, AC: Aircraft tires, AG: Agricultural tires, MC: Motorcycle tires Specialties（OR/AC/AG/MC） 623.6 B JPYRevenue 99% of PY Adj. Operating Profit 138.9 B JPY 102% of PY Adj. Operating Profit Margin 22.3％ +0.7% vs. PY Promote “growth with quality” by deepening the linkage with solutions mainly for OR and AC Increase in profit vs. prior yearSummary of 2024 2024 2024 2025 Significant increase in profitability vs. prior year resulting from expansion of solutions as well as increased sales volume, reflecting demand recovery from the Covid-19 pandemic Continue to expect a solid sales 2024 2025 Increased profitability vs. prior year, by promoting a premium-niche strategy to focus on premium races and sports segments Continue to promote a premium-niche strategy 2024 2025108 100 OR 2024 Sales volume (vs. prior year) AC Premium tire & solutions business in specialties | Summary of financial results for 2024 / Business plan for 2025
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10/29 2,936.1B JPY 405.6B JPY 13.8% 100% of PY +0.1% vs. PY Core business 101% of PY 297.9B JPY 4.2B JPY 1.4% 100% of PY (3.0)% vs. PY 32% of PY Solutions business 1,411.3B JPY 78.3B JPY 5.5% 107% of PY 108% of PY +0.1% vs. PY Growth business Premium tire business as core business: Secured AOP approx.14％ despite in challenging business environment Solutions business as growth business: Secured an increase in revenue & profit vs. prior year by steadily expanding commercial BtoB solutions as “strategic business” Diversified products business: Resurface management issues Retail 1,065.7B JPY 55.1 B JPY 5.2% 107% of PY 110% of PY +0.1% vs. PY 4,430.1B JPY 483.3B JPY 10.9% 103% of PY 101% of PY (0.2)% vs. PY Global in total 345.6B JPY 23.1B JPY 6.7% 105% of PY 106% of PY 0.0% vs. PY Commercial BtoB solutions Premium tire business Revenue Adj. Operating Profit Adj. Operating Profit Margin Revenue Adj. Operating Profit Adj. Operating Profit Margin Diversified products business Revenue Adj. Operating Profit Adj. Operating Profit Margin *The simple total of revenue by business segment does not equal Group revenue due to elimination in consolidation, etc. *Portion calculated from a simple total of revenues by business segment Revenue Adj. Operating Profit Adj. Operating Profit Margin Revenue Adj. Operating Profit Adj. Operating Profit Margin 63% Revenue portion Revenue portion 30% Revenue portion Revenue Adj. Operating Profit Adj. Operating Profit Margin * Incl. revenue of retail tires Mobility tech business Strategic business *Incl. N.America financial retail 6% Summary of 2024 consolidated financial results: Performance by business portfolio
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11/29 Business Plan for 2025: “The year of Emergency and Crisis Management” Summary of Financial Results for 2024
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12/29 Our pathway from 2025 - the year of emergency and crisis management to A “strong Bridgestone”, Reinforcing Earning Power, The “True Next Stage” in 2026 Create good business quality Create good tires Create good business Create new business sowing good seeds for the future “Jukuryo-Danko” 2025: The year of Emergency and Crisis Management 2026: True next stage “Dan-Totsu Bridgestone” Genbutsu-GenbaTeamwork Start building of Dan-Totsu Sustainable Premium brand Corporate branding with sustainable global motorsports as a core Dan-Totsu business quality: Heading towards growth on the foundation of “lean & excellent operation” - Pursue reinforcing management and working & business quality ー Bridgestone’s unique Deming plan - Promote initiatives for global business cost reduction and BCMA – Toward next stage - Enhance talent creativity and productivity Dan-Totsu tires: Prepare ENLITEN Gen2 from Gen1, and Bridgestone MASTERCORE Gen2 Rebuilding of consumer tires business in the U.S. “Multi -brand strategy” - Reinforce BS brand, revitalize FS brand Dan-Totsu business: Enhance and expand commercial BtoB business Establish Mobility tech business “Real and Digital” - Strategic business Quality + Volume N. America, India and OR&AC Toward growth with quality Continue to enhance & expand premium PS -HRD business with the ongoing “tailwind” Execute multi-brand strategy, reinforcing FS & BS better category to respond “new threats” Expand and enhance Dan-Totsu products and Dan-Totsu product power - Particularly Bridgestone – ENLITEN (Gen1) & MASTERCORE - Rebuilding of consumer tires business in the U.S. “Multi-brand strategy” - Reinforce BS brand, revitalize FS brand Further strengthen the steady global business cost reduction Reinforce the foundation for commercial BtoB solution business - “Reinforce Genbutsu-Genba initiatives” combining Dan-Totsu products and solutions with Real and Digital as an axis Quality Europe, Japan Complete restructuring & rebuilding (2nd stage) / Build lean business foundation “Business restructuring & rebuilding (2nd stage)” Reinforce business quality - Promote management with stricter discipline Establish a strong foundation of business quality globally - Reinforce leveraging “Bridgestone’s unique Deming plan” Valuing Genbutsu-Genba, communication in person (FtoF), and strengthening teamwork
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13/29 Our pathway from 2025 - the year of emergency and crisis management to A “strong Bridgestone”, Reinforcing Earning Power, The “True Next Stage” in 2026 Create good business quality Create good tires Create good business Create new business sowing good seeds for the future “Jukuryo-Danko” 2025: The year of Emergency and Crisis Management 2026: True next stage “Dan-Totsu Bridgestone” Genbutsu-GenbaTeamwork Start building of Dan-Totsu Sustainable Premium brand Corporate branding with sustainable global motorsports as a core Dan-Totsu business quality: Heading towards growth on the foundation of “lean & excellent operation” - Pursue reinforcing management and working & business quality ー Bridgestone’s unique Deming plan - Promote initiatives for global business cost reduction and BCMA – Toward next stage - Enhance talent creativity and productivity Dan-Totsu tires: Prepare ENLITEN Gen2 from Gen1, and Bridgestone MASTERCORE Gen2 Rebuilding of consumer tires business in the U.S. “Multi -brand strategy” - Reinforce BS brand, revitalize FS brand Dan-Totsu business: Enhance and expand commercial BtoB business Establish Mobility tech business “Real and Digital” - Strategic business Quality + Volume N. America, India and OR&AC Toward growth with quality Continue to enhance & expand premium PS -HRD business with the ongoing “tailwind” Execute multi-brand strategy, reinforcing FS & BS better category to respond “new threats” Expand and enhance Dan-Totsu products and Dan-Totsu product power - Particularly Bridgestone – ENLITEN (Gen1) & MASTERCORE - Rebuilding of consumer tires business in the U.S. “Multi-brand strategy” - Reinforce BS brand, revitalize FS brand Further strengthen the steady global business cost reduction Reinforce the foundation for commercial BtoB solution business - “Reinforce Genbutsu-Genba initiatives” combining Dan-Totsu products and solutions with Real and Digital as an axis Quality Europe, Japan Complete restructuring & rebuilding (2nd stage) / Build lean business foundation “Business restructuring & rebuilding (2nd stage)” Reinforce business quality - Promote management with stricter discipline Establish a strong foundation of business quality globally - Reinforce leveraging “Bridgestone’s unique Deming plan” Valuing Genbutsu-Genba, communication in person (FtoF), and strengthening teamwork
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14/29 Confidential SS1 TB: Closure of LaVergne plant (announced in Jan. 2025) Workforce reductions in the company’s U.S. corporate, sales and operations. (Announced in Jan. 2025) Diversified products: Business rebuilding (in 2025) WEST EAST AG 1st Stage 2nd Stage ”Tackle past negative legacies squarely without delay”Global “Need to be further strengthened at an even higher level in 2025” from “2024 plan” 2020-2021 21MBP ― Planned approx. 40% decrease from approx. 160 sites (as of 2019) Executed the business restructuring of approx. 50 sites almost as planned 2024-2025 24MBP ― Implementation of restructuring projects & assessment of rebuilding initiatives at global level mainly in WEST, especially in Europe & L. America, “transform its shape of business” Europe Port Elizabeth plant, South Africa (for bias tires, in 2020) Bethune plant, France (for PS, in 2021) “Further transform the shape of Europe business – integrated & simplified” ・ Retread: Announced an intention to close Lanklaar plant, Belgium (in 2024) ・ Assessment on TB business rebuilding (in 2025) ・ Assessment on retail business rebuilding (2025 – 2026) ・ Production, Sales, TCE and Corporate functions: integrated & enhance efficiency (starting from 4Q 2024, 2025 and beyond) 1st stage 2nd stage L. America “Transform the shape of business” (in 2025) - Business rebuilding of Argentina & Brazil Further Fixed cost reduction 2nd stage Transfer of U.S. Building products business (in 2021) N. America Damage control and assessment on business rebuilding (in 2025) - Reduction in plant production and workforce at the Des Moines plant (AG tire) (announced in Jan. 2025) Withdrawal from Sport/Tennis Business (in 2020) Transfer the plant for tennis ball in Thailand (in 2021) Withdrawal from conveyor belt business (in 2021) Transfer of Anti-Vibration rubber business (in 2021) Transfer of Chemical products solutions business (in 2021) Transfer of Bridgestone sports arena K.K. (in 2022) Japan Streamlining of REP wholesale & retail & Admin functions: Business rebuilding Thailand Rangsit plant, Thailand (for bias tires including PS & TB, in 2023) 1st stage 2nd stage Streamlining of REP wholesale & retail and Admin functions (in 2025) Rebuilding of other group companies and Internal manufacturing business (in 2025) Rebuilding of diversified products business (in 2025) Withdrawal from TB business in China (in 2024) - Production termination at Shenyang plant Reinforce a focus on PS premium tire business Huizhou plant, China (for TB, in 2021) Bridgestone (Huizhou) Synthetic Rubber Co., Ltd Transfer -Synthetic rubber business (Internal manufacturing -2021) 1st stage 2nd stage 1st stage 2nd stage 2nd stage 1st stage China Business restructuring & rebuilding (2nd stage) : Global overviewProgress update Start streamlining of “multi-layered” structure2nd stage
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15/29 Confidential SS1 “Transform of the shape of the L. America business” • Proceed business rebuilding for cost optimization in Argentina and Brazil ‐Reductions in production capacity and workforce at its footprints Business restructuring & rebuilding (2nd stage) : WEST (N. America & L. America and Europe) Progress update Rebuilding of Europe business Optimization of the business footprints in the U.S. : build foundation of “growth with quality” Rebuilding of L. America business WEST (N. America, L. America and Europe) organization “Transform the shape of Europe business” – “Integrated & simplified” • Retread: Announced an intention to close Lanklaar plant, Belgium (in Sep. 2024) to be consolidated into 1 plant in Poland • Production, Sales, Technology center and Corporate function: Optimization to be assessed (in 4Q 2024 and from 2025) • TB & retail business: Promote business rebuilding toward turnaround in 2025 Evolving entire organization toward “Integrated & simplified” Bridgestone Mobility Solutions that mainly manages solutions for truck and bus including retread and mobility solutions is integrated to truck & bus business of premium tire business. Enhance premium tire business and ensure it evolves with the solution business in Genbutsu-Genba, promoting comprehensive initiatives that amplify value during “use” of tires from “produce and sell” with Dan-Totsu products as its core. Streamline organizations in Americas and Europe, such as Finance, R&D and production etc. Bridgestone has been contributing to the U.S. society, the economy and local communities since its merger with Firestone in 1988 through establishment of new tire plants (Warren plant, Aiken plant) and investment in a sales and service network of 2,200 equity retail stores and a technology center in Akron, Ohio. The U.S. is Bridgestone ‘s largest operation which accounts for approx. 40% of global revenue As of 2024 end : Approx. 34,300 employees (incl. production and retail) 24 business footprints (incl. HQ, technology center, production plants) 2,200 equity retail stores Reinforce and expand production and sales (including retail) in the U.S. with no change of the policy of “Local production for local sales” Remain committed to contributing to society, economy, and mobility of people and goods across the U.S. Strengthen competitiveness and enhance the business quality by optimizing the business footprint While adapting to the changes of the business environment, enhance its premium tire business • Closure of LaVergne plant (TB) • Reduction in plant capacity and workforce at the Des Moines plant (AG tire) • Workforce reductions in the company’s U.S. corporate, sales and operations.
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16/29 Confidential SS1 Global CEO Office & Global Corporate Strategy Division Internal Auditing Executive Vice President BRIDGESTONE WEST CEO Executive Vice President BRIDGESTONE EAST CEO Executive Vice President Global CAO・Global CSO Executive Vice President Global CTO Global Investment Executive Meeting BSAM (Americas business) BSEMEA (EU, Middle East, Africa business) WEST Retail WEST CTO G-MICA* BSAPIC (Asia, Pacific, India and China business) BSJP (Japan business) BSDP (Diversified Products business) Global CEOShuichi Ishibashi Scott Damon Yasuhiro Morita Nobuyuki Tamura Area: Restructuring & rebuilding, Investment, M&A *CTO=Chief Technology Officer Global CFO Global Sustainability Global Product Strategy GOE Talent Creativity DX Digital Solutions Global Quality Management Global Business Support Corporate Administrations etc. Global CIO Product Technology Development Motorsport Development (organization newly established) Tire Manufacturing and Engineering Global BCMA etc. *CAO=Chief Administration Officer *CSO=Chief Strategy Officer G-EXCO (Global Executive Management Committee) *G-MICA : Global Mining, Industrial, Construction, and Aviation Tire Solutions Business Evolve into a new & true glocal management structure: Promote management with stricter discipline Clarify the “business responsibility (profit & loss responsibility)” of BRIDGESTONE WEST & EAST and the “cross-functional & global optimization responsibility” that pursues global optimization By ensuring that each Executive Vice President fulfills its roles and responsibilities on an equal positioning, promote a management approach committed to "execution and delivering results,” while strengthening governance and ensuring checks & balances. Upgrade process, increase sensitivity, enhance ownership and a sense of mission and signal monitoringby leveraging Global Investment Executive Meeting (Chair: Global CEO, Area: Restructuring & rebuilding, investment, and M&A) Governance & Secretariat Office Cross-functional & Global Optimization Responsibilities Business Responsibilities (Profit & Loss Responsibilities) Cross-functional & Global Optimization Responsibilities Business Responsibilities (Profit & Loss Responsibilities) Masato Banno
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17/29 Confidential SS1 Our pathway from 2025 - the year of emergency and crisis management to A “strong Bridgestone”, Reinforcing Earning Power, The “True Next Stage” in 2026 Create good business quality Create good tires Create good business Create new business sowing good seeds for the future “Jukuryo-Danko” 2025: The year of Emergency and Crisis Management 2026: True next stage “Dan-Totsu Bridgestone” Genbutsu-GenbaTeamwork Start building of Dan-Totsu Sustainable Premium brand Corporate branding with sustainable global motorsports as a core Dan-Totsu business quality: Heading towards growth on the foundation of “lean & excellent operation” - Pursue reinforcing management and working & business quality ー Bridgestone’s unique Deming plan - Promote initiatives for global business cost reduction and BCMA – Toward next stage - Enhance talent creativity and productivity Dan-Totsu tires: Prepare ENLITEN Gen2 from Gen1, and Bridgestone MASTERCORE Gen2 Rebuilding of consumer tires business in the U.S. “Multi -brand strategy” - Reinforce BS brand, revitalize FS brand Dan-Totsu business: Enhance and expand commercial BtoB business Establish Mobility tech business “Real and Digital” - Strategic business Quality + Volume N. America, India and OR&AC Toward growth with quality Continue to enhance & expand premium PS -HRD business with the ongoing “tailwind” Execute multi-brand strategy, reinforcing FS & BS better category to respond “new threats” Expand and enhance Dan-Totsu products and Dan-Totsu product power - Particularly Bridgestone – ENLITEN (Gen1) & MASTERCORE - Rebuilding of consumer tires business in the U.S. “Multi-brand strategy” - Reinforce BS brand, revitalize FS brand Further strengthen the steady global business cost reduction Reinforce the foundation for commercial BtoB solution business - “Reinforce Genbutsu-Genba initiatives” combining Dan-Totsu products and solutions with Real and Digital as an axis Quality Europe, Japan Complete restructuring & rebuilding (2nd stage) / Build lean business foundation “Business restructuring & rebuilding (2nd stage)” Reinforce business quality - Promote management with stricter discipline Establish a strong foundation of business quality globally - Reinforce leveraging “Bridgestone’s unique Deming plan” Valuing Genbutsu-Genba, communication in person (FtoF), and strengthening teamwork
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18/29 Confidential SS1 Based on Dan-Totsu product power, continue to maintain a focus on the PS -HRD tires where there is a “tailwind” of demand growth Ensure focus on premium linked with PS HRD + Premium tire brand + “New premium” ENLITEN expansion Strengthen an approach to premium vehicle & OEMs, prestige OEMs and premium EVs based on value creation through “ultimate customization” enabled by ENLITEN technology (OEMs in Japan, Europe, U.S. and emerging EV OEMs, etc.) Strengthen the initiatives for steady global business cost reduction Expansion of “new premium” ENLITEN for passenger car (replacement) Launch of products equipped with ENLITEN: cumulative total of 22 products in 2024 approx. 30 products in 2025 (plan) ENLITEN equipped % : 23% in 2024 35% in 2025 plan Global procurement, Global SCM logistics transformation B -Direct, BCMA, Shift to Green & Smart, and steady on- site productivity improvements =“Support the Group’s performance” Benefit from cost reduction 75 B JPY in 2024 + plan in 2025 approx. 30 B JPY = total approx. 105 B JPY (vs. 2023) 24MBP (2024-2026) target: approx. 100 B JPY (vs. 2023) A level that can achieve the target one year ahead DOWN Fusion N. America & Europe: Tire sales ratio of 18 inch and above OE 70% in 2024 approx. 75% in 2025 (plan) Ensure to take in REP recursion demand (Tire sales ratio for REP 18 inch and above: approx. 45% in 2025 (plan) and continues to grow) Number of car models with ENLITEN OE fitment 117 models in 2024 approx. 170 models in 2025 (plan) PS premium tires sales ratio (REP/global) : 60％ above in 2025 (plan) U P 2025 “Offense” Premium tire business – Premium focus & acceleration of global business cost reduction initiatives
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19/29 Confidential SS1 Americas & Europe connected vehicle(end 2024): approx. 50K U.S. Rebuilding of consumer business India Premium mass strategy Investment on production capacity expansion of PS premium tires (Pune plant) and quality enhancement (Indore plant) Commercial BtoB solutions Mining, Aviation and truck & bus Expand deployment of solution with the combination of multiple retread and tire wear & durability prediction model Expand “Bridgestone Fleet Care” which combines mobility solutions with Dan-Totsu products, maintenance service and retread BS：Network for premium retails, family channels - Promote enhancement of BSRO* to expand sales - FS dealer revitalization Amplify value of Dan-Totsu products Amplify trust with customers Amplify data value Real x Digital Analyze the vehicle data and tire data by real- time sharing Contribute to the optimization of mining operations Enable customer to use tires safer, longer, better and more efficiently Co- Creation JAL - Expand to large jet aircraft such as A350-900 Build new & true family channel Promote BtoB solution based on customer success Deploy to PS & LT, utilizing the expertise developed through TB FS：Establish unique position 2025 “Offense” Markets to grow Toward “Growth with quality” Build new & true premium tire business model “Dan-Totsu producsts” Channel New sales structure ‐Invest amount: approx. 11.9 B JPY ‐Increased volume: approx. 1.1 M units/year To start investment from 2025 and expand production capacity in 2029 Establish a satellite technology center function that pursues the best customization for Indian market Enhance family channel and B-Select Build channel Reinforce strategic partners (New partnership collaboration) Solidify market leader position Co- Creation BHP for Spence Mines Komatsu for the large mining equipment monitoring system, “Komtrax Plus,”etc. “Multi-brand strategy” *Bridgestone Retail Operations
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20/29 Confidential SS1 Business plan for 2025 – Global overview
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21/29 Confidential SS1 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 USD EUR 2015 2019 2020 2021 284.3 240.1 -19.8 307.9 2022 305.4 ROE 13.3％ 10.0% -0.9% 12.9% 10.9% 2023 326.9 10.4% 3,790.3 3,507.2 2,695.2 3,246.1 4,110.1 4,313.8 130 160 110 170 175 200 210 (plan) 7.5% 6.8% -0.7% 9.5% 7.4% 7.6% ROIC 14.7％ 7.4% 5.1% 9.0% 9.4% 8.7% 24MBP21MBP 2025 Business plan: Global overview 121JPY 134JPY 109JPY 122JPY 107JPY 122JPY 110JPY 130JPY 343.1 517.2 482.6 394.3 207.4 13.6% 9.8% 7.7% 12.1% 11.7% 132JPY 138JPY 141JPY 152JPY 480.6 11.1% 145JPY 150JPY 2025 230 (plan) plan 4,330.0 9.2% 7.2% 253.0 5.8% Revenue: 98% vs. 2024 (102% without currency exchange) Based on the sales volume of “high certainty” Adj. operating profit: 104% vs. 2024 (111% without currency exchange) Adj. operating profit margin: 11.7% +0.8% vs. 2024 (+1.0% without currency exchange) “Reinforce earning power” Profit margin from continuing operations: 89% vs. 2024 Resource for restructuring & rebuilding approx. 100 B JPY (adjusted items) ROIC: 9.2% --- vs. 2024+1.0% ROE: 7.2% --- vs. 2024 (0.9)% Dividend per share: 230JPY per share (plan) vs. 2024 +20JPY per share 2024 152JPY 164JPY 4,430.1 8.2% 8.1% 285.0 6.4% 483.3 10.9% 11.7% 505.0 B JPY Return to a strong Bridgestone capable of adapting to change Currency Exchange Adj. Operating Profit Margin[%] Adj. Operating Profit [B JPY] Profit from continuing operations [B JPY] Dividend per share [JPY] Profit margin from continuing operations [%] Revenue [B JPY] Remaining issues New issues Year of emergency and crisis management True next stage 2025 Plan Increase profit vs. prior year approx. 1% increase target 12％ level adj. operating profit adj. operating profit margin 500 B JPY over Reinforce share holder return & capital policy which enhance sustainable corporate value
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22/29 Confidential SS1 2025 Business plan: Assumptions Due to the uncertainty surrounding impact of tariff measures (25% for Mexico and Canada, 10% for China etc.), including the timing of their application to Mexico and Canada, these factors have not been incorporated into this guidance for 2025 consolidated financial outlook. New management issues : Volatile business environment in the U.S. - Impact of additional tariffs under the Trump administration Business environment Need to respond continuously to “new threads” - Structure changes in the automotive industry due to the rise of Chinese EVs - Acceleration of structural changes in market, industry, and profitability of tire business due to increase in low -end imports (particularly in Europe and L. America) Currency exchange / Raw material 1USD =145 JPY / 1EUR=150 JPY Raw material cost per unit of natural rubber is foreseen to increase vs. prior year Assumption for business environment: Scenarios Due to the significant impact on both internal and external stakeholders (including sales & retail, OEMs and suppliers), we will not act hastily. Instead, assess potential cases and develop multiple scenarios, and establish a structure that allows for agile actions. Accurately assess the situation, activate the execution plan from the developed scenarios at the appropriate timing, and implement it swiftly. • Price pass-through • SCM leveraging the Bridgestone’s strengths (global sourcing & optimization of global procurement) • Reinforcement of local production for local sales (incl. productivity improvement） etc. Local production for local sales (2025) • Americas (North America & Latin America) : Approximately – PS 90% / TB 80% • United States : Approximately – PS 60% / TB 70%
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23/29 Confidential SS1 2,880.0 397.0 14% below below 100% of 2024 0% vs. 2024 6% Revenue portion 31% Revenue portion 290.0B JPY level 17.0B JPY level below 6% below 100% of 2024 over +4% vs. 2024 over 400% of 2024 1,400.0B JPY level 110.0B JPY level below 8% 100%level of 2024 above 140% of 2024 above+2% vs. 2024 1,050.0B JPY level 78.0B JPY level above 7% below 100% of 2024 above 140% of PY over +2% vs. 2024 4,330.0B JPY 505.0B JPY 11.7% 98% of 2024 104% of 2024 +0.8% vs. 2024 350.0B JPY level 32.0B JPY level above9% over 100% of 2024 over 140% of 2024 below +3% vs.2024 Premium tire business as core business: Plan the profit margin of approx. 14% under challenging business environment. Solutions business as growth business: Increase profitability in “strategic business” commercial BtoB solutions as well as retail - Plan significant profit increase above 140% of prior year and over +2% of AOP margin Core businessPremium tire business Revenue Adj. Operating Profit Adj. Operating Profit Margin below 100% of 2024 Revenue Adj. Operating Profit Adj. Operating Profit Margin Diversified products business Global in total Revenue Adj. Operating Profit Adj. Operating Profit Margin *The simple total of revenue by business segment does not equal Group revenue due to elimination in consolidation, etc. *Portion calculated from a simple total of revenues by business segment Retail Revenue Adj. Operating Profit Adj. Operating Profit Margin Commercial BtoB solutions Revenue Adj. Operating Profit Adj. Operating Profit Margin Mobility tech business Strategic business Solutions business Growth business * Incl. revenue of retail tires Revenue Adj. Operating Profit Adj. Operating Profit Margin 63% Revenue portion B JPY level B JPY level *Incl. N.America financial retail 2025 Business plan: By business portfolio
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24/29 Confidential SS1 Resource allocation
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25/29 2024 performance summary / 2025 business plan Resource allocation: Capital expenditure / R&D expenses “Strengthen prioritization” Continue strengthening prioritization under the ongoing challenging business environment. Suppress CAPEX to approx. 1.2 T JPY vs. 24MBP (2024-2026) of approx. 1.4 T JPY level, but still increasing compared to 21MBP CAPEX total: approx. 406.0 B JPY (same level as 2024) Based on the business environmental changes, strengthen prioritization Selectively injected resource mainly into the premium tire business (core business) CAPEX total: 389.8B JPY (approx. 90% of 2023) Capital expenditure 2024 summary R&D expenses 2025 plan 2024 summary 2025 planR&D expense for product & manufacturing technology development: 126.2 B JPY “Lay foundation for future growth” Maintain 3% level vs. revenue – Strengthen prioritization mainly for ENLITEN and Bridgestone MASTERCORE as “Dan-Totsu product” and tire manufacturing & engineering to “Lay foundation for future growth” R&D expense for product & manufacturing technology development: approx. 123.0 B JPY 0 1,000 2,000 3,000 4,000 5,000 2021 2022 2023 2025plan2024 Suppress from original 24MBP Revised 24MBP Plan approx. 1.2 T JPY level with estimation of approx. 400 B JPY in 2026 2026 estimate 21MBP: total 1.0 T JPY Approx. 150.0 Approx. 256.0 110JPY 130JPY 132JPY 138JPY 141JPY 152JPY 145JPY 150JPY 152JPY 164JPY Currency exchange USD EUR 205.7 94.3 222.8 166.4 253.6262.0 317.1 420.0 142.1 247.6 389.8 56.2 Ordinary investments Strategic investments approx. 406.0 approx. 400.0level Capital expenditure (B JPY)
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26/29 Maximize our contribution to all stakeholders Bridgestone (Company) Employees Local communities Partner & Suppliers Sustainable society Shareholders Enhance capital efficiency Reinforce shareholder returns - Increase shareholder value Shareholders Enhance customer value creation Solve customers’ pain points Realize customer success Co-creation With E8 Commitment as an axis Customers Build WIN-WIN & fair partnership with key co-creation partners Partners & Suppliers With E8 Commitment as an axis Enhance talent creativity and productivity with a lean structure Increase the amount of talent investment per person and rewards for high performers Employees With E8 Commitment as an axis Continue & reinforce social contribution activities to serve diverse characteristics of each region Local communities Contribute to realize carbon neutrality, circular economy and nature positive Sustainable society（Sustainability business model) “Bridgestone Way” to Contribute to our Stakeholders - “Serving Society with Superior Quality” Customers Create Social Value × Customer Value × Corporate Value - Carbon neutrality — CO2 emission reduction* : approx. 59% in 2024* (2030 target: 50% and above) - Circular economy — Recycled & renewable material ratio approx. 39.7% in 2024* (2030 target: 40% and above) - Nature positive — Strengthen initiatives for sustainable use of natural rubber and water resources, which are directly linked to our business; Support for small rubber farmers of 11,955 households in 2024 (24MBP target: 12,000 and above) *CO2 emission reduction : Scope1,2 vs. 2011 *2024 actual is preliminary • Global: Talent creativity KPI (Adj. operating profit/talent investment) 102 in 2024 111 in 2025 plan (INDEX = 100 in 2019) • Japan: Talent investment/person vs. 2023 104 in 2024 107 in 2025 With E8 Commitment as an axis With E8 Commitment as an axis
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27/29 2025 Reinforce Capital policy & share holder return –Toward the Next Stage in the ‘Bridgestone Way’ as a Guiding Principle Reinforce capital policy & share holder returns that support sustainable enhancement of corporate value (2025 initiatives) “Enhance shareholder returns”: Steady and continuous increase in dividend amounts Dividend: Increase the consolidated dividend payout ratio to the industry-leading level of 50% and continuously increase the dividend per share (230 JPY for 2025) Maintain financial soundness while balancing the capital efficiency improvement • Share Buybacks & cancellation of treasury stock for the investment that contributes to the enhancement of corporate value and measures for optimal capital structure（improving capital efficiency) Dividend forecast in 2024: 210 JPY （+5% vs. prior year） Dividend forecast for 2025: MIN 230 JPY （+10% vs. prior year） Dividend per share Sustainable enhancement of corporate value - toward the “true next stage” aiming for “growth with quality” • Pursue working and business quality enhancement based on “Bridgestone’s unique Deming Plan” • “Reinforcing earning power,” and execute strategic growth investment selectively to “lay foundation for future growth” Selective investments to premium segment and markets to grow such as North America, India, and mining & aviation tire solutions Acquire 300 B JPY of 75 million shares (max.) All Treasury Stock acquired through this buyback are schedule to be canceled. *Acquisition timing: February 20, 2025 - December 23, 2025 / Cancellation timing: January 2026 (plan) Consolidated equity ratio • Utilize Debt 200 B JPY (corporate bond＋debt) and cash reserves 100 B JPY Gradual and steady approach capturing changes in external & internal environments 2024 65% 2025 60% level 55%level as an ideal ratio in the mid term
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28/29 Capital allocation to support “Growth with quality” Source of capital allocation Approx. 1.4 T JPY 21MBP 24MBP Latest (As of Feb in 2025) debt “Strategic resource” (strategic investment + strategic expense) Execute acquisition of treasury stock as an investment contributing to enhance corporate value and as a measure for achievement of an optimal capital structure (capital efficiency): Approx. 0.3 T JPY in 2025 Continued soundness (Maintain a top-class credit rating in the industry) “Enhance shareholder returns”: Increase dividends steadily and continuously Dividend forecast in 2024: 210 JPY （+5% vs. previous year） Dividend forecast in 2025: MIN 230 JPY（+10% vs. previous year） Dividend per share In addition to cash-in based on “reinforcing earning power,” utilize cash reserves and dept with a focus on capital efficiency Operating CF Approx 0.6 T JPY（Approx 10% increase vs. 21MBP) Selectively inject strategic resources mainly into the premium tire business with high certainty - 2025 as “the year of emergency and crisis management” - Reinforce “defense” while pursuing “offense” initiatives to “lay foundation for future growth” While maintaining financial soundness, balance capital efficiency Approx. 2.2 T JPY Approx. 2.1 T JPY Operating CF Operating CF “The year of emergency and crisis management” – Considering the business environmental changes from 24MBP, thoroughly select strategic resources to “Lay foundation for future growth” based on “Reinforcing earning power,” leading to “enhance shareholder returns” while maintaining financial soundness and balancing capital efficiency cash reserve Ordinary investments, etc. Approx. 0.7 T JPY Ordinary investments, etc. Approx. 0.6 T JPY Approx. 0.5 T JPY Approx. 0.5 T JPY Shareholder returns （dividend） 24MBP Latest forecast (As of Feb in 2025) Approx.0.3 T JPY Approx.0.3 T JPY Repayment of debt Repayment of debt Approx.0.3 T JPY Acquisition of treasury stock Shareholder returns （dividend） strategic resource Approx. 0.6 T JPY strategic resource Approx. 0.8 T JPY • Selectively inject strategic resource mainly into the premium tire business to “Lay foundation for future growth” • Acquired treasury stock as an investment that contributes to enhancing corporate value and as a measure for achieving an optimal capital structure (capital efficiency). • Enhance shareholder returns by increasing dividends steadily and continuously • . Cash out Dividend: Raise the consolidated dividend payout ratio to the industry top level of 50%, continuously increasing dividend per share Revised 24MBP (2024-2026)
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29/29 Toward “True next stage” With “Defense” and “Offense”, we will pave the way forward to The “True Next Stage” in 2026 A “strong Bridgestone” Reinforcing Earning Power
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30/29 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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31/29 Appendix Appendix
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32/29 Business plan for 2025 – Priority items Appendix
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33/29 N. America & Europe: Sales portion of tires 18 inch & above (including sales portion of “ultra”- HRD tires 20 inch & above) In the challenging business environment, based on Dan-Totsu product power, continue to maintain a thorough focus on the PS HRD tires where there is a “tailwind“ of demand growth 2025: Further accelerate premium focus including expansion of “ultra”- HRD tires 20 inch & above <Offense> Expand Dan-Totsu product & enhance Dan-Totsu product power Global premium focus: Passenger car high rim diameter tires – Improve sales mix Appendix 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 6 7 28% 63% REPOE 39% 2023 2024 11%2023 2024 2023 2024 2023 2024 30% 26% REPOE 29% 13% 67% 41% 31% 30% +5％ Take in recursion demand over30% 70% 20 inch & above 18 to 19 inch 17 inch & below 17 inch & above 16 inch & below Japan & emerging markets (Asia & Pacific, China, and L. America) Sales portion of tires 17 inch & above 2025 plan Approx. 75% over30% over40% 2025 plan over30% over10% Approx. 45% 2026 and beyond 11% 2025 plan Approx. 70% 2025 plan Take in recursion demand 2026 and beyond
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34/29 57% 24% 32% 2023 60% 2024 25% 35% <Offense> Expand Dan-Totsu product & enhance Dan-Totsu product power Global premium focus: Passenger car premium tires – Improve sales mix HRD tires Premium tire brand Other premium tires in each region Premium tires in each region Sales portion of PS premium tires for the year (replacement / global) HRD tires* Premium tire brand + premium tires in each region *N. America, Europe, and Middle East: 18 inch & above Other regions: 17 inch & above 2025 plan Over approx. 60% over35% over25% Appendix Ensure a thorough focus on premium tires linked with the expansion of ENLITEN, “new premium” on top of the growth in high rim diameter (HRD) tires
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35/29 0 20 40 60 80 100 120 140 160 180 2021 2022 2023 27 45 29 75 31 44 167 20 2024 117 42 75 OEMs Vehicle model Japan Honda Prologue Lexus RZ Nissan ARIYA SUBARU SOLTERRA Toyota bZ4X Europe Abarth 500 abarth 595 elettrica AUDI Q4 e-tron / e-tron GT / Q6 e-tron / A6 e-tron BMW iX / iX1 / i7 / i5 / iX2 FIAT 500e Maserati Grecale Folgore Mercedes- Benz EQB / EQA / EQXX MINI Countryman Porsche Macan Electric SEAT Cupra Born SKODA ENYAQ VW ID.3 / ID. 4 / ID.7 2025 plan OEMs Vehicle model N. America CHEVROLET Blazer EV / Silverado Ford Mustang Mach-E GMC Sierra China NIO eT7 SAIC MG Mulan / MG ES5 / IM LS7 XIAOMI SU7 X PENG X9 India Tata Curvv.ev Taiwan Foxtron Model C Vietnam VinFast VF6 <Offense> Expand Dan-Totsu product & enhance Dan-Totsu product power Expansion of “new premium” ENLITEN for passenger car (original equipment) *OE: Original equipment, REP: Replacement tires Non-EV EV Number of car models with ENLITEN OE fitment (global) EV models with OE fitment* Equipped Approx. 170 Approx. 110 *EV OE fitment as of the end of 2024 Approx. 60 Appendix Expand OE fitment based on value creation through “ultimate customization” enabled by ENLITEN technology Steadily take in REP recursion demand from OE and strengthen an approach to premium vehicles and OEMs, prestige OEMs and premium EVs (OEMs in Japan, Europe, U.S. and OEMs for emerging EVs, etc.)
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36/29 0 5 10 15 20 25 30 35 40 45 0 5 10 15 20 25 30 35 40 45 2023 2024 9products 8% 2025 plan 22 products 23% Japan: Minivan & compact SUV specialized premium tire （Started launch in February 2025） N. America: Flagship product of touring all-season tire (To be launched in March 2025) <Offense> Expand Dan-Totsu product & enhance Dan-Totsu product power Expansion of “new premium” ENLITEN for passenger car (replacement) ※PS: Passenger car tires, LT: Light truck & bus tires Strategic product planning for “new premium” ENLITEN Major new premium products equipped with ENLITEN (in 2025) • Achieve both driving and environmental performance at a high level • Expand new ENLITEN products with sharpened edge ensuring competitiveness • Especially improve wear, irregular wear resistance & electricity consumption along with driving performance as base performance Support to realize the carbon neutral mobility society from the ground up by solving the pain points of EVs Launch of products equipped with ENLITEN (cumulative total) ENLITEN equipment % Expansion plan for PS & LT* replacement tires equipped with ENLITEN (Global) Approx. 30 products Approx. 35% Reinforce Dan-Totsu products equipped with ENLITEN and expand line-ups globally Link with sustainable global motorsports to drive R&D and business planning toward the evolution of next generation ENLITEN technology Appendix
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37/29 <Offense> Reinforce steady global business cost reduction – Bridgestone DNA Global business cost reduction amount in total (vs. prior year) Approx. 75 B JPY 2024 (Gap vs. 2023) Global SCM logistics transformation B-Direct BCMA Shift to Green & Smart Steady on-site productivity improvements Shift to Green: Reduce energy Gentan-i (energy consumption per unit), improve energy efficiency linked with productivity improvement Shift to Smart: Reduce conversion cost to improve productivity by promoting automation Deploy BCMA from four global model plants* – Start generating primary benefits such as conversion cost reduction by reducing change-over of material, parts, and equipment by product enabled by module sharing -> Expand benefits across value chain such as raw material procurement & inventory reduction etc. *N. America: Joliette plant, Canada / Europe: Burgos plant, Spain / Japan: Tochigi plant / Asia: Nongkhae plant, Thai Roll out and globalize “Advanced Hikone Model” from Japan, which fuses real (craft person skills) and digital capability to pursue the essence of “manufacturing” Reinforce the initiatives globally in 2025 Raw material: Reinforce co-creation with global strategic partners with sustainability at the core Indirect procurement: Promote cost reduction by encouraging steady initiatives of central purchasing for office supplies and plant equipment etc. Manufacturing cost: Approx. 63B JPY OPEX: Approx. 12B JPY Approx. 30 B JPY 2025 plan (Gap vs. 2024) Manufacturing cost: Approx. 18B JPY OPEX: Approx. 11B JPY Promote steady improvement at Genbutsu-Genba (on-site) globaly under the leadership of Japan as the core of manufacturing Reduce production cost including conversion cost Appendix While continuing challenging business performance, steady global initiatives at Genbutsu-Genba supported the Group’s performance Accelerate the benefit generation in 2025 24MBP (2024-2026) target: A level that can achieve approx. 100 B JPY (vs. 2023) one year ahead of schedule Improve efficiency of supply chain: Promote production in sites close to the demand area – linked with BCMA etc. Promote direct shipment to customers and maintain lean inventory (units & amount base) and reduce warehouse cost Global procurement
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38/29 <Offense> Toward “Growth with quality” – Markets to Grow Appendix North America, India Tire solutions for mining vehicles and aviation (commercial BtoB solutions)
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39/29 <Offense>Toward “growth with quality”: India & U.S. India | Premium mass strategy Execute strategic investment in production capacity expansion of PS premium tires at Pune plant and quality enhancement in Indore plant Establish a satellite technology center function to reinforce manufacturing of “Dan-Totsu products” equipped with ENLITEN that pursues the best customization for the Indian market Solidify market leader position Enhance family channel & B-Select Reinforce strategic partners (New partnership collaboration) Build a strong business foundation, based genba (on-site) engagement and local production for local sales U.S. | Rebuilding of consumer business Further reinforce brand power as “sustainable premium”, linked with sustainable global motorsports Appendix BS: Network for premium retails and family channels • Promote enhancement of BSRO to expand sales • FS dealer revitalization for retail and wholesale Building of new & true family channels Promote BtoB solutions based on customer success Deploy to PS & LT, utilizing the expertise developed through TB solutions FS: Establish unique position Start “growth with quality” Build new & true premium tire business model “Dan-Totsu products” Channel New sales structure Strengthen Dan-Totsu product Invest amount: Approx. 11.9 B JPY, Increased volume: Approx. 1.1 M units per year, start investment from 2025 and expand production capacity in 2029Build channel “Multi-brand strategy”
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40/29 U.S. business – Footprints +Overview Footprints Headquarters for Americas (Nashville, Tennessee) Technology center (Akron, Ohio) Production footprints : 22 sites • Tire related plant : 14 plants • Raw materials plant : 4 plants • Diversified products plant : 4 plants Number of retail equity store : approx.2,200 stores * Footprints and employees : As of 2024 end * Revenue, Adj. operating profit and production ratio for local production for local sales: Actual of 2024 fiscal year Employees approx. 34,300 people Revenue/ Adj. operating profit (N. America: U.S. and Canada) Revenue : approx. 1,850.0B JPY (40% of global total revenue) Adj. operating profit: approx. 180.0 B JPY (40% of global total AOP) Bridgestone has been contributing to the U.S. society, the economy since its merger with Firestone in 1988 Bridgestone will remain committed to contributing to society, economy, and mobility of people and goods across the U.S. Appendix Approximately – PS 60% / TB 70% Local production for local sales ratio
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41/29 <Offense> Commercial BtoB solutions business (1): Mining solutions Mobility tech business Strategic business Reinforce the production site of Dan-Totsu products – Strategic investment for Kitakyusyu plant Approx.120mines Gap vs. end of 2023 Approx.+25mines MASTERCORE sales (End of 2024) Enables customers to use our premium tire safer, longer, better, and more efficiently Maximize productivity and economic value of mining operations, and also contribute to sustainability Network sites for mining vehicles Approx.125sites Of which provide on-site service （Bridgestone + OTRACO） Enhance service network Field engineering being attentive to customers on-site Number of service network sites (End of 2024) Approx.70sites Bridgestone iTrack • Tire temperature and pressure (real-time) • Vehicle location information and driving speed Sharing fleet operation management data with mining companies Approx. 90mines Number of mines introducing digital tools incl. iTrack (End of 2024) Mining solutions contract (End of 2024) Gap vs. end of 2023 Approx. +10 mines Gap vs. end of 2023 Approx.+2mines Co-creation: • Implementation of tire durability prediction solutions at BHP Spence Mines (Announced in July 2023) • Started the demonstration experiment of a co-creation project with Komatsu for providing new solutions with mining companies （Announced in February 2025) Appendix Realize “amplifying value of Dan-Totsu products”, “amplifying trust with customers”, and “amplifying data value” by being attentive to customers’ pain points and solving them with Genbutsu-Genba approach, to create new social & customer value Amplify data valueAmplify trust with customersAmplify value of Dan-Totsu products Approx. 80mines
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42/29 <Offence> Commercial BtoB solutions (1): Mining solutions Started the demonstration experiment of a co-creation project with KOMATSU for providing new solutions to mining companies 【Komtrax PlusとBridgestone iTrackのデータ相互交換のイメージ】 Propose an appropriate tire usage based on the real-time exchange & analysis of vehicle data from Komatsu’s large mining equipment monitoring system, “Komtrax Plus,” and tire data from Bridgestone's next-generation tire monitoring system for mining vehicles, “Bridgestone iTrack” Aiming to improve fuel efficiency for mining dump trucks, ensuring customers to make safer, longer, better, and more efficient use of tires Mobility tech business Strategic business Appendix
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43/29 <Offense> Commercial BtoB solutions business (2) Aviation solutions and solutions for truck & bus Mobility tech business Strategic business Aviation solutions Based on Dan-Totsu product power, combine multiple retread and tire wear & durability prediction model to amplify tire & data value Expand and enhance solutions that combines real and digital through co-creation with customers Airline Flight data Planned tire replacement Data analysis Wear & replacement prediction New tire + multiple retread Establish a circular business model Efficient aircraft maintenance plan and tire replacement Steadily promote mobility solutions that combine Dan-Totsu product, retread, and maintenance services Number of connected vehicles for mobility solutions (end of 2024): Approx. 1.3M vehicles Webfleet Solutions (Europe) : Approx. 860K vehicles (Gap vs. end of 2023 Approx. +26K vehicles) Azuga (N. America): Approx. 400K vehicles (Gap vs. end of 2023 Approx. +31K vehicles) Solutions services to commercial fleets (incl. light truck) that combines premium tires and tire-related maintenance services (N. America / Started in May 2024) Expand fleet solutions by evolving and integrating to a “Bridgestone Fleet Care” program to take on the challenge of building mobility tech business in N. America Solutions for truck & bus Based on the trust with customers and partners, amplify the value of Dan-Totsu products combining real & digital to solve customers’ pain points and contribute to sustainability Reinforce partnership on exchanging fleet operation management data with Geotab (Europe/Announced in October 2024) Leading to expand TB solutions Appendix Scheduled tire replacement operations, applying tire wear prediction technology • Started co-creation operation from May 2020 • Expand from conventional regional jet aircraft to large jet aircraft including Airbus A350-900 from July 2024, after experiencing approximately 4 years’ operation Reinforce and expand the co-creation with JAL Number of contracted vehicles for “Bridgestone Fleet Care” program* (end of 2024): Approx. 50K vehicles Europe: Approx 31K vehicles (Gap vs. end of 2023 – Approx. +20K vehicles) N. America: Approx. 18K vehicles (Launched in 2024) *A bundled package of mobility solutions Including Dan-Totsu products, maintenance services, and retread
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44/29 <Offense>Build a “sustainable premium” brand Start the initiatives toward building a “sustainable premium” brand with sustainable global motorsports at the core Establish a new motorsports management structure | Place the motorsports organization (Vice President and Senior Officer) under the Global Chief Technology Office, effective March 1, 2025 Reinforce motorsports activities, also in the management structure Appendix Bridgestone World Solar Challenge Motorsports Gallery @ Bridgestone Innovation Gallery (Kodaira, Tokyo) NTT INDYCAR® SERIES : Race tires made with guayule-derived natural rubber Concept tire model for sustainable global motorsports
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45/29 Exploratory business: Sowing new seeds - With providing social value & sustainability at the core 1/2 Enhance exploration of business model based on “co-creation” with external partners Softrobotics Recycle “Renew” tires to raw material - Initiatives for a future where tires are renewed as new tires “Soften the Future” - Realize a future where human and robot co-exist • 2024: Became a corporate venture, with an entry of a well-being market • 2025: Steadily promote small-scale commercialization TETOTE (on the left) : Soft robotic hand, incorporating AI software from our partner, Ascent Robotics Corporation, makes piece-picking possible, successfully grabbing a variety of objects UMARU (on the right) : A prototype of “robots that immerse your body and move your mind” Technology development and demonstration experiment to establish the precise pyrolysis technology of end-of-life tires (co-creation with ENEOS Corporation) Support project for “the Green Innovation Fund” of NEDO* • 2022: started 2023: Introduced demonstration equipment • 2025 Jan. : Announced to build a pilot demonstration plant for precise pyrolysis of end-life tires (To start operation within 2027) Launch of a joint project to produce carbon black from end-of-life tire and other materials (co-creation with Tokai carbon, Kyusyu University and Okayama University) Support project for “the Green Innovation Fund” of NEDO* starting from Jan. 2025 Initiatives for commercialization of tires using plant resource-derived synthetic rubber (co-creation with ENEOS Materials Corporation and JGC Holdings Corporation) Support project for “the Green Innovation Fund” of NEDO* • 2022: Starting technical assessment and market survey In collaboration with 3 companies Feb. 2025: accelerate the collaboration Appendix *NEDO: New Energy and Industrial Technology Development Organization 「umaru」 @International robot exhibition 2023 Key co-creation initiatives
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46/29 Exploratory business: Sowing new seeds - With providing social value & sustainability at the core 2/2 Next-Generation Tire that does not need air-filling “Committed to nonstop mobility” in local communities Empowering mobility in local communities and contribute to sustainability including recycling • Free from punctures, while improving resource productivity and enhancing maintenance efficiency • Ensure safety and peace of mind, adopting ”Empowering Blue”, a color that maximizes visibility at twilight - dim lighting conditions 2008: Initiated Bridgestone’s unique development as “AirFree Concept" leveraging technology of “mastering rubber” and “mastering road contact” 2024: Evolution from the concept to “AirFree” Started demonstration experiments on public roads 2025: Accelerate the collaboration with local governments toward social implementation (Signed a collaboration agreement with Higashiomi-city and Toyama city) Leverage the technology cultivated through “AirFree” for the research and development of lunar rover tires Providing safety and peace of mind in extreme environments and “supporting space exploration with the human dreams on our shoulders” 2019: Started developing tires for manned, pressured rover as a joint development with JAXA and TOYOTA Developed the 1st generation tire concept 2024: Developed a new lunar rover tire, as the 2nd generation tire concept, designed to meet harsher demands for durability and traction leveraging the technology cultivated through "AirFree" Debut of new concept model at “the 39th Space Symposium”, the largest space-related symposium in the U.S. Signed a collaboration agreement with Astrobotic Technology for joint development of a lunar rover tire 2025: Promote its technology development Appendix Expand our mission – from local communities to outer space AirFree Luna rover tire
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47/29 Enhance talent creativity Appendix
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48/29 Promote productivity & creativity improvement at Genbutsu-Genba: - 2024 – Improve productivity and create chains of values with a consistent and streamlined simple manufacturing as “Advanced Hikone Model,” leveraging real and digital - Improve the production process from the viewpoint of female operation staffs to promote Suru-raku (streamlined and less burden) production Linked with the culture change at Genba Enhance Digital Talents (as of 2024 End) : Global total 1,750 people Talent investment per person (Japan) Activities in 2024 (Japan) Continue reinforcement Understanding & empathy for Bridgestone Training in place of founding (Kurume visit) Over 1,400 people Opportunity for learning & challenge Digital 100-day Training Genba 100-day Challenge 24 people in cumulative total took part both inside & outside Japan Management Challenge 13 people in cumulative total took part On-site challenge on a voluntary basis Motivated talent take on the challenge of assisting managers at an early stage Based on requests for improvement in the working environment, execute measures that can be felt by those on-site Improvement of production site environment Approx. 3.7 B JPY FemTech program Addressing female-specific health issues by using technology 230 participants Equivalent to 20% of all female employees Improve productivity Introduce to BSAPIC* from 2024, gradually expanding globally Progress update toward enhancing talent creativity KPI for talent creativity (Adj. operating profit ÷ talent investment) Productivity & creativity improvement leveraging generative AI (algorithms) Started utilization globally from 2H 2023 Improving the working environment “Reinforce talent investment, increase added value and create a virtuous cycle of value creation” – drive initiatives to enhance talent creativity while also working on improving productivity to enable continuous investment in talent Enhance talent creativity 100 74 117 119 110 102 111 120 50 60 70 80 90 100 110 120 130 140 150 2019 2020 2021 2022 2023 2024 2025 2026 2019 2020 2021 2022 2023 2024 results 2025 plan 24MBP 2026 2023 2024 results 100 104 107 2025 plan Appendix 2024 results Over 2,200 people Cumulative total of participants (2023-2024) Cumulative total of participants (2023-2024) 2024 results *Bridgestone Asia, Pacific, India, China
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49/29 Sustainability Appendix
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50/29 Carbon neutrality 57% 2023 69% 1.9times Continuous reinforcement Mid-long term target Approx. 59% Appendix CO2 emission reduction (Scope1,2) vs. 2011 Ratio of renewable energy (electricity) Contribution to CO2 reduction (Scope3) Circular economy Nature positivity Support for smallholders of natural rubber towards forest conservation 39.6% 39.7％ 5,640 Develop Water stewardship plan 100% More than 39％ Execution reinforcement along with the plan Recycled & renewable material ratio Manuf. facilities under water stress area: 17 sites Cumulative # of smallholders supported (from 2023) 2024 (preliminary) 2025 plan *CO2 emission reduction : Scope1,2 vs. 2011 *2024 result: Preliminary 2050 100% Sustainable materials 2050 Carbon neutrality Further focus on improvement of “quality” incl. Scope 3 Focus on “initiatives for sustainable use of natural rubber & water resources” which are directly related to our business Results in 2024 & plans for 2025 Sustainability – Building a foundation for sustainable value creation 2030 More than 50％ Approx. 11,955 Approx. 72% Approx. 2.6 times Expanding contribution to reduce CO2 through the entire value chain including light weight, low rolling resistance, solutions, etc. Continuous reinforcement Contributing to reduce CO2 emission by more than 3times Our own CO2 emissions More than approx. 12,000 Strengthen the circular business model 2030 More than 39％
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51/29 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.