Bridgestone : Financial Results Review Meeting for Q1 2026

About this update from Bridgestone Corporation

‌Financial Results for 1st Quarter of Fiscal 2026 Bridgestone Corporation Bridgestone Corporation Vice President and Senior Officer CFO Naoki Hishinuma May 14, 2026 ‌Summary of Financial Results for Q1 and Fiscal 2026 Guidance Business and Financial Performance for Q1 of Fiscal 2026 ··· 3 ··· 6 ‌Summary of Financial Results for Q1 and Fiscal 2026 Guidance ‌Summary of Financial Results for Q1 and Fiscal 2026 Guidance Financial Results for Q1 (vs. PY) Achieved record-high Revenue and Adjusted OP for Q1, supported by a tailwind from Yen depreciation. Despite a slowdown in demand in North America, partly due to unfavorable winter weather, new consumer products and a multi-brand strategy contributed to sales which exceeded demand for both PS/TB, resulting in a steady increase in market share. Europe continued to improve profitability. PS/LT sustained favorable MIX improvement through expansion of HRD tire sales, delivering YoY profit growth despite a challenging business environment. The capital policy announced in February (share buybacks / raising fund) is executed steadily. Fiscal 2026 Guidance: No change from Feb guidance The situation in the Middle East remains fluid, and its potential impact on business performance will continue to be monitored cautiously. The impact of higher raw material costs due to rising crude oil prices is expected from Q2 onward (mainly in the 2nd half). Various measures will be implemented to minimize the impact. Impact of U.S. tariffs: No significant changes from the February assumptions (approx. 55B JPY annual gross impact). ‌Impact of the Middle East Situation Priorities Safety Comes First - Ensuring the Safety of Employees engaging in the Middle East Close collaboration with local partners Direct Impact Sales from these regions account for only approx. 1.5% out of total sales Indirect Impact Impact of Cost Inflation Rising raw material costs due to higher crude oil prices, etc. Rising conversion and logistics costs due to higher energy costs Impact on production due to supply chain disruptions (No concerns so far, though requires cautious monitoring) Decline in tire demand due to the economic downturn Estimated Impact of Cost Inflation Estimated Cost Impact for FY2026 ( Comparison with the Feb guidance) Approx. 70.0 B JPY (Gross Impact) Assumption: Crude oil prices (WTI: $90/bbl) remains by end of the year. Including the impact on energy and logistics costs While closely monitoring the situation, we will implement various measures: including business cost reduction, optimizing costs by leveraging our global supply chain, and strengthening sales initiatives to minimize impact of the Middle East situation. ‌Business and Financial Performance for Q1 of Fiscal 2026 ‌Consolidated Financial Results for Q1 of Fiscal 2026 2026 Q1 (Yen in billions) Results Results vs. PY (%) Revenue 1,058.1 1,113.4 +5 Adjusted Operating Profit 111.4 122.2 +10 Margin 10.5% 11.0% +0.4pp Profit Attributable to Owners of Parent 75.9 92.1 +21 USD/JPY ¥153 ¥157 - EUR/JPY ¥160 ¥184 - 2025 Q1 (*) Revenue and Adjusted Operating Profit show figures for continuing operations and exclude revenue and expenses of the discontinued operations. ‌Analysis of Adjusted Operating Profit for Q1 of Fiscal 2026 (vs. PY) (Yen in billions) 160.0 140.0 Raw Materials +14.0 Price +3.0 MIX +8.0 Volume (5.0) Conversion Costs +0.0 -Effect of improvement Operating Expenses (1.0) Currency +5.0 Others (13.2) 122.2 120.0 100.0 111.4 -Incl. price impact from market-linked contracts (0.0) in Genba operation at production sites +5.0 Return from business rebuilding -U.S. Tariff Impact (10.0) 80.0 Business cost reduction Return from business rebuilding Business cost reduction Business cost reduction 60.0 40.0 20.0 0.0 2025 Q1 2026 +10.8 billion yen / +5.8 billion yen excl. FX Q1 ‌Consolidated Financial Results by Segment for Q1 of Fiscal 2026 2025 Q1 Results 2026 Q1 Results vs. PY (%) Revenue 299.9 303.8 +1 Japan Adjusted OP 42.5 53.7 +26 with REP tire sales expansion and improved price/MIX in Japan. Margin 14.2% 17.7% +3.5pp Asia, Pacific, India and China Revenue 124.1 134.3 +8 Adjusted OP 14.6 13.5 (8) Margin 11.8% 10.0% (1.7)pp Revenue 510.7 532.1 +4 (vs.PY) PS REP demand 91, sales 95 TB REP demand 89, sales 97 sales under a challenging environment. Americas Adjusted OP 39.8 37.9 (5) Margin 7.8% 7.1% (0.7)pp Europe, Middle East and Africa Revenue 206.4 228.7 +11 (Impact on consolidated performance is limited). Adjusted OP 9.1 19.0 +109 Margin 4.4% 8.3% +3.9pp Revenue and profit increased YoY, driven by Yen depreciation along Revenue increased YoY, driven by solid tire sales in PSR REP. Continued lean expense management and benefits from business rebuilding. Excluding one-off items in the previous year, profit increased YoY. NA : Despite a slowdown in demand partly due to unfavorable winter weather, new consumers products and a multi-brand strategy contributed to sales which exceeded demand for both PS and TB, resulting in a steady increase in market share, thereby supporting overall performance. LA : Secured black-ink. Strengthening business fundamentals and Europe: Continued expansion of premium tires, mainly HRD tires. Benefits from business rebuilding steadily materialized, resulting in higher revenue, profits and margins. Middle East: Revenue and profit declined YoY due to geopolitical impacts in the region (Yen in billions) ‌Consolidated Financial Results by Product for Q1 of Fiscal 2026 (Yen in billions) 2025 Q1 Results Revenue 596.1 2026 Q1 Results 636.8 vs. PY (%) +7 • Continued expansion of premium tires, including HRD tires, and improving sales MIX. PS/LT (incl. retail & credit card business) TB (incl. retread business) Specialties （OR/AC/AG/MC） Diversified Products Business Adjusted OP 62.1 Margin 10.4% Revenue 234.2 Adjusted OP 15.3 Margin 6.5% Revenue 156.2 Adjusted OP 34.1 Margin 21.9% Revenue 71.6 Adjusted OP (0.1) Margin (0.2)% 67.0 10.5% 241.0 18.1 7.5% 162.1 35.6 21.9% 73.6 1.5 2.1% +8 +0.1pp +3 +18 +1.0pp +4 +4 +0.1pp +3 - +2.2pp Achieved share gains in North America despite declining REP tire demand. Profitability in the retail business also improved. Profit and margins increased YoY despite lower sales in both OE and REP, reflecting benefits from business rebuilding and improved business fundamentals. Sales decreased for OR due to lower coal demand in Asia, while maintaining high profitability, supported by favorable raw material trends and FX impact. Continued steady improvements, achieving enhanced business fundamentals. ‌Consolidated Financial Results by Business portfolio for Q1 of Fiscal 2026 Tire business as core business: Core business Secured AOP slightly less than 13％ despite a challenging business environment (Yen in billions) Tire business vs. PY (%) Revenue: 733.0 +4 Adjusted OP: 94.1 (1) Margin: 12.8 % (0.6)pp Revenue portion Commercial BtoB Solutions business as growth business: Secured an increase in revenue & profit Achieved growth in revenue +11%, AOP amount +61% and AOP margin slightly stronger than 13%. Retail: Increase revenue & profit, continuously improve profitability Growth business Solutions business Global in total Revenue: 1,113.4 +5 Adjusted OP: 122.2 +10 Margin: 11.0 % +0.4pp vs. PY (%) (*) Incl. revenue of retail tires Revenue: 355.6 +7 Adjusted OP: 27.1 +48 Margin: 7.6 % +2.1pp Revenue portion vs. PY (%) business vs. PY (%) Revenue: 73.6 +3 Adjusted OP: 1.5 - Margin: 2.1 % +2.2pp Diversified products Retail Revenue: 264.9 +6 Adjusted OP: 14.9 +38 Margin: 5.6 % +1.3pp (*) Incl. N.America financial retail vs. PY (%) Revenue: 90.7 +11 Adjusted OP: 12.2 +61 Margin: 13.4 % +4.2pp Commercial BtoB solutions Mobility tech business Strategic business vs. PY (%) Revenue portion (*) 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 11/12 ‌B/S and C/F Highlights for Q1 of Fiscal 2026 Capital Policy (Financial Activities) (February announcement) 2025 Results (as of Dec 31, 2025) 2026 Q1 Results (as of Mar 31, 2026) (Yen in billions) vs. Dec 31, 2025 (85.0) ( Total Assets 5,747.7 5,645.8 (101.9) Cash and cash equivalents 713.8 642.9 1.7 months (70.9) (0.2) months (monthly sales) 1.9 months Inventories 885.5 901.3 +15.9 Finished products 564.7 583.7 +19.0 Total Liabilities 2,027.8 1,909.6 (118.2) Interest-Bearing Debt 〈Gross〉 827.0 799.7 (27.3) Total Equity 3,719.9 3,736.2 +16.3 Equity Ratio (%) 63.7% 65.2% +1.4pp CCC (Cash Conversion Cycle) 171 days 170 days (1) day Exchange Rate USD/JPY ¥157 ¥160 +¥3 at the end of reporting period EUR/JPY ¥184 ¥183 (¥1) 2025 Q1 Results 2026 Q1 Results vs. PY Cash Flows from Operating Activities 169.9 190.8 +20.9 Cash Flows from Investing Activities (78.6) (82.1) (3.5) Free Cash Flow 91.3 108.7 +17.4 Capital Expenditure 56.2 55.1 (1.1) Depreciation and Amortization 86.2 92.0 +5.8 Company has determined to acquire Treasury Stock of JPY 150 billion (max.), an investment that contributes to enhancing corporate value and as a measure toward optimal capital structure (capital efficiency). *1) ⚫ As part of the initiatives to contribute building an optimal capital structure and increase corporate value by decreasing WACC (expansion of ROIC-WACC Spread) while maintaining the industry-leading credit ratings, we plan to raise funds of 150 billion yen through straight corporate bonds, etc. Steadily promoting Debt Financing and Share Buybacks Debt Financing (raising fund) Implemented in Apr 2026: 120 billion yen Share Buybacks As of the end of Apr: approx. 51% (Progress rate based on actual amount) (*1) excl. FX vs. Mar 31, 2025 12/12 ‌ 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. Copyright © Bridgestone Corporation ‌Appendix ‌ Appendix Market Trend of Natural Rubber and Crude Oil (average) Tire Demand for Q1 of 2026 (unit base% vs. PY) 2025 2026 Q1 Q2 Q3 Q4 Q1 Natural Rubber 〈TSR20〉(*1)（￠/kg） 197 168 170 173 191 Natural Rubber 〈RSS#3〉(*1)（￠/kg） 240 221 219 206 229 Crude Oil 〈WTI〉（$/bbl） 71 64 65 59 73 Estimated by Bridgestone PSR/LTR TBR OE REP Japan 104% 99% N. America 98% 91% (*2) Europe 99% 98% OE REP 115% 91% 79% 89% (*2) 108% 97% ORR PSR/LTR HRD(18"+) Tire Sales Growth for Q1 of 2026 (vs. PY) PSR/LTR TBR (*1) Source: Singapore Commodity Exchange Limited vs. PY Global (OE+REP) 101% vs. PY 95% Global 100% 101% Japan 95% 103% Asia, Pacific, India, China 106% 102% N. America 105% 95% Europe 105% 109% 95% 95% 109% 97% 122% 99% 87% 97% 80% 89% OE REP OE REP / (*2) Member Demand：Tire Brands (excl. imports) which participates in U.S./Canadian Tire Manufacturers Association(*3).Total demand including non-members is as follows. PSR/LTR REP：92%, TBR REP：85% (*3) USTMA (U.S. Tire Manufacturers Association) + TRAC (Tire Rubber Association of Canada) vs. PY Global (OE+REP) 104% REP 103% vs. PY Ultra-Large (REP) 96% Large 86% OE 110% REP 76% Small & Medium 103% OE 111% REP 96% (*) As for TBR, figures of China is excluded. ‌Appendix Consolidated Financial Results by Business of Q1 for Fiscal 2026 (Diversified Products Business) (Yen in billions) Diversified Products Business Revenue: 16.7 +1 Adjusted OP: 0.2 - Margin: 1.2 % +2.7pp Sports & Cycle Biz vs. PY (%) Chemical & Industrial Products Biz vs. PY (%) Revenue: 40.2 +7 Adjusted OP: 1.5 - Margin: 3.7 % +4.5pp vs. PY (%) Revenue: 73.6 +3 Adjusted OP: 1.5 - Margin: 2.1 % +2.2pp Diversified Products Biz in Americas (Air Springs) vs. PY (%) Revenue: 15.8 (6) Adjusted OP: (0.1) - Margin: (0.8) % (3.5)pp ‌Appendix Premium tires for passenger car - Without Dan-Totsu products, there can be no growth with quality Flagship product of all-season tire of touring category ( Launched in Mar. 2025 ) North America Multi-brand strategy India All-season premium tire of touring category customized for the India market ( Launched in Apr. 2024 ) Japan Basic tire for touring category All-season tire for premium CUV/SUV/pick up ( Launched in Sep. 2025 ) ( Launched in Jun. 2025 ) Premium studless tire for passenger car ( Launched in Sep. 2025 ) Summer tire with ultra high performance ( Launched in Jan. 2026 ) Sport tire that pursues the fastest performance in street radial history ( Launched in Feb. 2026 ) ‌Appendix Premium tires for truck & bus - Without Dan-Totsu products, there can be no growth with quality N. America Japan Europe ECOPIA Steer ECOPIA Drive ECOPIA Trailer Flagship product for regional driving. In addition to improved wear resistance and fuel efficiency, significantly enhanced retreadability. ( Launched in Nov. 2025 ) All-season tire for paved roads and high-speed driving. Improved total life, including retreading. Achieves a high level of both economic efficiency, safety and environmental performance. ( Launched in Mar. 2025 ) Flagship ECOPIA series for long-distance driving, together with existing products for steer and drive positions, expanding the lineup of ENLITEN equipped products for fleets. ( Launched in Feb. 2025 ) ‌ 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. Copyright © Bridgestone Corporation

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