Consolidated Financial Statements

for the First Half of the Fiscal Year Ending December 31, 2021

August 10, 2021

These financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), have been translated for reference only from the original Japanese-language document "KESSAN TANSHIN." The entire format is pursuant to the requirements or guidance of Tokyo Stock Exchange. As for the contents, if there are any differences or discrepancies between the original Japanese-language and the English translation, the original Japanese-language supersedes this English translation.

Company name:

Bridgestone Corporation

Stock exchange listings: Tokyo, Nagoya, Fukuoka

Code number:

5108

URL: https://www.bridgestone.com/

Representative:

Shuichi Ishibashi, Member of the Board

Global CEO and Representative Executive Officer

Contact:

Kentaro Saji, General Manager, IR Department

Telephone:

+81-3-6836-3100

Scheduled date of quarterly securities report submission: August 10, 2021

Scheduled date of dividend payment commencement: September 1, 2021

Supplementary information for the quarterly financial statements to be prepared: Yes

Meeting to explain the quarterly financial statements to be held: Yes

(All amounts are rounded off the nearest million yen)

1. Consolidated Results for the First Half of Fiscal 2021 (January 1, 2021 - June 30, 2021)

(1) Consolidated Operating Results

(Percentage figures represent year-on-year changes)

Figures for continuing operations (Note 2)

Revenue

Adjusted operating

Operating profit

Profit attributable to

profit (Note 1)

owners of parent

Six months ended

Yen in millions

%

Yen in millions

%

Yen in millions

%

Yen in millions

%

1,568,789

24.2

176,173

369.3

169,698

-

123,619

-

June 30, 2021

Six months ended

1,262,917

-

37,537

-

9,177

-

(30,214)

-

June 30, 2020

Figures including discontinued operations

Profit attributable to

Comprehensive

Basic earnings

Diluted earnings

owners of parent

income

per share

per share

Six months ended

Yen in millions

%

Yen in millions

%

Yen

Yen

352,320

-

477,569

-

500.35

499.58

June 30, 2021

Six months ended

(22,044)

-

(112,269)

-

(31.31)

(31.31)

June 30, 2020

(Notes) 1. The Group

utilizes "adjusted

operating profit" in place of the previously employed J-GAAP-based operating

income.

For details on reconciliations, please refer to page 12, "Reconciliation from adjusted operating profit to profit

before tax" under "2. Condensed Quarterly Consolidated Financial Statements and Primary Notes (6) Notes

to the Condensed Quarterly Consolidated Financial Statements."

2. The Company has classified FIRESTONE BUILDING PRODUCTS COMPANY, LLC (hereinafter "FSBP") and

its subsidiaries as discontinued operations from the first quarter of the fiscal year ending December 31, 2021.

Accordingly, profit from discontinued operations on the consolidated statement of profit or loss is presented

separately from the continuing operations. Note that for the six months ended June 30, 2020, the amounts for

revenue, adjusted operating profit, operating profit and profit attributable to owners of parent of the continuing

operations have been restated using the same classification of operations as that used for 2021. Therefore,

the year-on-year percentage changes for these amounts are not presented.

(2) Consolidated Financial Position

Total equity

Ratio of equity

attributable to

Total assets

Total equity

attributable to

owners of parent to

owners of parent

total assets

Yen in millions

Yen in millions

Yen in millions

%

As of June 30, 2021

4,436,430

2,624,017

2,580,693

58.2

As of December 31, 2020

4,189,327

2,195,291

2,149,958

51.3

2. Dividends

Dividend per share

1st quarter end

2nd quarter end

3rd quarter end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal 2020

-

50.00

-

60.00

110.00

Fiscal 2021

-

85.00

Fiscal 2021

-

85.00

170.00

(Projection)

(Note) Changes from the latest forecasts released: Yes

3. Consolidated Financial Results Forecasts for Fiscal 2021 (January 1, 2021 - December 31, 2021)

(Percentage figures represent year-on-year changes)

Figures for continuing operations

Figures including discontinued operations

Revenue

Adjusted operating

Profit attributable to

Basic earnings

profit

owners of parent

per share

Yen in millions

%

Yen in millions

%

Yen in millions

%

Yen

Fiscal 2021

3,320,000

18.3

360,000

84.7

325,000

-

461.53

(Note) Changes from the latest forecasts released: Yes

BRIDGESTONE AMERICAS, INC., a U.S. subsidiary of the Company, has concluded an agreement with LafargeHolcim Ltd., a Swiss building materials manufacturer, regarding the sale of FSBP, a subsidiary of BRIDGESTONE AMERICAS, INC. in the Americas segment, to Holcim Participations (US) Inc., the U.S. subsidiary of LafargeHolcim Ltd., on January 6, 2021 (local time), and the sale was completed on March 31, 2021.

Accordingly, the Company has classified FSBP and its subsidiaries as discontinued operations from the first quarter of the fiscal year ending December 31, 2021, and in the Consolidated Financial Results Forecasts for Fiscal 2021, revenue and adjusted operating profit show figures for continuing operations and exclude discontinued operations. Note that the amounts for revenue and adjusted operating profit for the fiscal year ended December 31, 2020 used for calculating the year-on-year percentage changes have been restated using the same classification of operations as that used for 2021, and are approximations that may change as a result of the accounting audits.

Amounts for profit attributable to owners of parent, and basic earnings per share for continuing operations only are

as follows:

¥230,000 million

Profit attributable to owners of parent:

Basic earnings per share:

¥326.62

  • Notes
    1. Changes in principal subsidiaries during the six months ended June 30, 2021: No (Changes in specified subsidiaries involving change in consolidation scope)
    2. Changes in accounting policies and changes in accounting estimates

1)

Changes in accounting policies required by IFRS

: No

2)

Changes in accounting policies other than 1)

: No

3)

Changes in accounting estimates

: No

  1. Number of issued shares (common stock)
    1. Total number of issued shares at period end (including treasury stock):

June 30, 2021

713,698,221 shares

December 31, 2020

713,698,221 shares

2) Number of shares of treasury stock at period end:

June 30, 2021

9,475,976 shares

December 31, 2020

9,566,508 shares

3) Average number of shares outstanding during the period (during the first half):

First Half ended June 30, 2021

704,148,046 shares

First Half ended June 30, 2020

704,093,432 shares

  • Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.

* Statement regarding appropriate use of forward-looking statements and other notes

Forecasts based on our projections and plans for the future in this document contain unpredictable elements that may cause fluctuations. As such, they do not constitute guarantees by the Company of the achievement of those forecasts. Accordingly, actual business results may differ substantially from the Company's current assessment.

Bridgestone Corporation (5108) Results for the six months of fiscal 2021

[ Index ]

1. Qualitative Information on Consolidated Financial Results for the Six Months....................................

2

(1) Explanation regarding information on consolidated financial results forecasts and other

forward-lookingstatements .......................................................................................................................

2

2. Condensed Quarterly Consolidated Financial Statements and Primary Notes......................................

4

(1)

Condensed Quarterly Consolidated Statement of Financial Position ..................................................

4

(2)

Condensed Quarterly Consolidated Statement of Profit or Loss..........................................................

6

(3)

Condensed Quarterly Consolidated Statement of Comprehensive Income.........................................

7

(4)

Condensed Quarterly Consolidated Statement of Changes in Equity..................................................

8

(5)

Condensed Quarterly Consolidated Statement of Cash Flows ...........................................................

10

(6)

Notes to the Condensed Quarterly Consolidated Financial Statements ............................................

12

(Notes regarding going concern assumption)......................................................................................

12

(Reconciliation from adjusted operating profit to profit before tax) ..................................................

12

(Impairment of non-financialassets) .....................................................................................................

13

(Selling, general and administrative expenses) ...................................................................................

14

(Other income and other expenses) ......................................................................................................

14

(Finance income and finance costs)......................................................................................................

15

(Discontinued operations) ......................................................................................................................

16

(Subsequent events) ...............................................................................................................................

16

1

Bridgestone Corporation (5108) Results for the six months of fiscal 2021

1. Qualitative Information on Consolidated Financial Results for the Six Months

  1. Explanation regarding information on consolidated financial results forecasts and other forward- looking statements

[Revision of consolidated financial results forecasts for the fiscal year ending December 31, 2021] 1) Consolidated financial results forecasts (from January 1, 2021 to December 31, 2021)

Revenue

Adjusted operating

Profit attributable to

Basic earnings

profit

owners of parent

per share

Previous forecasts

Yen in millions

Yen in millions

Yen in millions

Yen

3,010,000

260,000

261,000

370.67

(A)

Revised forecasts

3,320,000

360,000

325,000

461.53

(B)

Differences (B-A)

+310,000

+100,000

+64,000

+90.86

Change (%)

10.3

38.5

24.5

24.5

(Reference)

2,805,410

194,896

(23,301)

(33.09)

FY2020 results

2) Reason for revisions

The full-year consolidated financial results forecast announced in February 2021 was based on the assumption that the global economy would return to pre-COVID-19 levels of 2019 in 2023, as there were no prospects for stemming the spread of COVID-19. The Company forecast was created in the assumption that global tire demand in 2021 would remain at a certain low level compared with 2019. However, from the second half of 2020, countries around the world made progress in balancing infection countermeasures with economic activity, and coming into 2021, the advance of the COVID- 19 vaccination program has further accelerated the moved toward recovery in the global economy. As a result, global tire demand in the first half of 2021 has shown a dramatic recovery at a pace exceeding the Group's expectations. In particular, demand for truck and bus tires and construction vehicle tires has grown significantly, underpinned by solid construction and transport demand. The Group's replacement tire sales for the first half have also recovered to a level on par with 2019.

In addition, in the Group's current initiatives to improve profitability centered on "expense and cost structure reform" and "strengthening the premium business strategy" with a view to "rebuilding earning power," measures in each field have been progressing at a pace that exceeds the initial plan targets and profitability of its businesses has substantially improved.

In this situation, as the earnings for the six months ended June 30, 2021 exceeded the forecast announced in February 2021, the Company reexamined its full-year forecast and decided to revise its financial results forecasts.

*On March 31, 2021, the Company's subsidiary FSBP was sold to Holcim Participations (US) Inc., and has therefore been classified as a discontinued operation. Accordingly, in the consolidated financial results forecasts for fiscal 2021 and the actual results for fiscal 2020, revenue and adjusted operating profit have been restated to show figures for continuing operations excluding discontinued operations. Note, however, that the amounts presented for fiscal 2020 are approximations that may change as a result of the accounting audits.

3) Notes concerning financial results forecasts

Financial results forecasts are based on currently available information and contain risks and uncertainties. Please bear in mind, therefore, that the actual financial results may differ substantially

2

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Bridgestone Corporation published this content on 10 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 07:19:59 UTC.