Bridgestone : Consolidated Financial Statements for FY 2021 (674 KB)

Consolidated Financial Statements

for the Fiscal Year Ended December 31, 2021

February 15, 2022

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, 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:	[phone]

Scheduled date of annual shareholders' meeting: March 23, 2022

Scheduled date of securities report submission: March 23, 2022

Scheduled date of dividend payment commencement: March 24, 2022

Supplementary information for the financial statements to be prepared: Yes

Meeting to explain the financial statements to be held: Yes

(All amounts are rounded off the nearest million yen)

1. Consolidated Results for Fiscal 2021 (January 1, 2021 - December 31, 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
		Yen in millions		%	Yen in millions		%	Yen in millions	%	Yen in millions	%
Fiscal 2021		3,246,057		20.4	394,340		90.1	376,799	503.0	307,868	-
Fiscal 2020		2,695,224		-	207,443		-	62,488	-	(19,790)	-
					Figures including discontinued operations
		Profit attributable to	Comprehensive	Basic earnings	Diluted earnings
		owners of parent	income		per share	per share
		Yen in millions		%	Yen in millions		%		Yen		Yen
Fiscal 2021		394,037		-	591,557		-		559.56		558.71
Fiscal 2020		(23,301)		-	(109,099)		-		(33.09)		(33.09)
		Percentages including
		discontinued			Percentages for continuing operations
		operations
		Return on equity	Ratio of profit before	Adjusted operating	Operating profit
		attributable to owners
		tax to total assets	profit margin	margin
		of parent
				%			%		%		%
Fiscal 2021				16.5			8.6		12.1		11.6
Fiscal 2020				(1.0)			0.6		7.7		2.3
(Reference)	Share of profit (loss) of investments accounted for using equity method:
	Fiscal 2021:	¥6,207 million
(Notes) 1.	Fiscal 2020:	¥(1,429) million
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 18, "Segment information" under "3. Consolidated Financial Statements and Primary Notes, (6) Notes to the Consolidated Financial Statements."

2. The Company has classified its US building materials business, anti-vibration rubber business, and chemical products solutions business as discontinued operations from the fiscal year ended 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 fiscal year ended December 31, 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.

For details on discontinued operations, please refer to page 26, "Discontinued operations" under "3. Consolidated Financial Statements and Primary Notes, (6) Notes to the Consolidated Financial Statements."

(2) Consolidated Financial Position

			Total equity	Ratio of equity	Equity
			attributable to	attributable to
	Total assets	Total equity	attributable to
	owners of parent	owners of parent
			owners of parent
			to total assets	per share
	Yen in millions	Yen in millions	Yen in millions	%	Yen
Fiscal 2021	4,574,892	2,675,354	2,629,883	57.5	3,734.23
Fiscal 2020	4,189,327	2,195,291	2,149,958	51.3	3,053.35

(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end
	operating activities	investing activities	financing activities
	of year
	Yen in millions	Yen in millions	Yen in millions	Yen in millions
Fiscal 2021	281,538	131,701	(379,321)	787,542
Fiscal 2020	526,947	(155,378)	18,077	810,546

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		-	85.00	170.00
Fiscal 2022		-	85.00		-	85.00	170.00
(Projection)
					Ratio of
			Dividend payout		dividends to
		Total		equity
		ratio
		dividends		attributable to
		(Consolidated)
				owners of parent
					(Consolidated)
		Yen in millions	%	%
Fiscal 2020	77,454	-	3.4
Fiscal 2021	119,722	30.4	5.0
Fiscal 2022			42.8
(Projection)

3. Consolidated Financial Results Forecasts for Fiscal 2022 (January 1, 2022 - December 31, 2022)

(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 2022	3,650,000		12.4	425,000		7.8	280,000	(28.9)	397.58

(Note) Amounts for profit attributable to owners of parent, and basic earnings per share for continuing operations
only are as follows:	¥290,000 million
	Profit attributable to owners of parent:
	Basic earnings per share:	¥411.78

• Notes
• 1. Changes in principal subsidiaries during fiscal 2021: Yes

(Changes in specified subsidiaries involving change in consolidation scope)
Newly included:	None
Excluded:	1 company: Bridgestone (Huizhou) Synthetic Rubber Co., Ltd.
(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)
2. 1. Total number of issued shares at period end (including treasury stock):

December 31, 2021

713,698,221 shares

December 31, 2020

713,698,221 shares

2) Number of shares of treasury stock at period end

December 31, 2021

9,434,214 shares

December 31, 2020

9,566,508 shares

3) Average number of shares outstanding during the period

Fiscal 2021 year ended December 31, 2021

704,191,725 shares

Fiscal 2020 year ended December 31, 2020

704,107,787 shares

(Reference) Summary of Non-consolidated Results

Non-consolidated Results for Fiscal 2021 (January 1, 2021 - December 31, 2021)

(1) Non-consolidated Operating Results

(Percentage figures represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit

Yen in millions

%

Yen in millions

%

Yen in millions

%

Yen in millions

%

Fiscal 2021

839,528

21.4

103,954

59.0

292,915

204.6

167,024

101.4

Fiscal 2020

691,683

(20.2)

65,377

(38.0)

96,155

(52.7)

82,914

(63.1)

Basic earnings

Diluted earnings

per share

per share

Yen

Yen

Fiscal 2021

237.18

236.83

Fiscal 2020

117.76

117.57

(2) Non-consolidated Financial Position

Total assets

Net assets

Equity ratio

Net assets per

share

Yen in millions

Yen in millions

%

Yen

Fiscal 2021

2,135,579

1,373,813

64.2

1,946.44

Fiscal 2020

2,097,389

1,294,084

61.6

1,833.40

(Reference) Equity: Fiscal

2021 ¥1,370,816 million

Fiscal 2020 ¥1,290,959 million

(Note) The figures presented in the non-consolidated operating results have been calculated in accordance with generally accepted accounting principles in Japan (J-GAAP).

non-consolidated results compared to those of the previous fiscal year>

In the fiscal year ended December 31, 2021, there is a difference between the actual results of the Company's net sales, ordinary profit, and profit for the previous fiscal year and the current fiscal year, mainly due to an increase in sales resulting from the recovery of the global economy, dividend income received from affiliated companies, and losses related to the transfer of the anti-vibration rubber business and the chemical products solutions business.

• Financial results reports are exempt from audit 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. For further details, please see page 5, "Projections for fiscal 2022" under "1. Operating Results

(1) Analysis of Operating Results."

Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2021

[ Index ]
1. Operating Results .........................................................................................................................................	2
(1) Analysis of Operating Results...................................................................................................................	2
(2) Analysis of Financial Position ...................................................................................................................	6
(3)	Basic Policy for the Appropriation of Profits and Dividends for Fiscal 2021 and 2022 ......................	8
2. Basic Policy on the Selection of Accounting Standard ............................................................................	9
3. Consolidated Financial Statements and Primary Notes .........................................................................	10
(1)	Consolidated Statement of Financial Position ......................................................................................	10
(2)	Consolidated Statement of Profit or Loss..............................................................................................	12
(3)	Consolidated Statement of Comprehensive Income ............................................................................	13
(4)	Consolidated Statement of Changes in Equity......................................................................................	14
(5)	Consolidated Statement of Cash Flows .................................................................................................	16
(6)	Notes to the Consolidated Financial Statements ..................................................................................	18
	(Notes regarding going concern assumption)......................................................................................	18
	(Segment information) ............................................................................................................................	18
	(Impairment of non-financialassets) .....................................................................................................	22
	(Selling, general and administrative expenses) ...................................................................................	23
	(Other income and other expenses) ......................................................................................................	24
	(Finance income and finance costs)......................................................................................................	25
	(Discontinued operations) ......................................................................................................................	26
	(Per share information) ...........................................................................................................................	29
	(Significant subsequent events) ............................................................................................................	31
4. Other .............................................................................................................................................................	32
(1)	Changes in Members of the Board of Directors ....................................................................................	32

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Bridgestone Corporation (5108) Consolidated Financial Results for fiscal 2021

1. Operating Results

The Bridgestone Corporation is referred to as the "Company," and the Company and its subsidiaries are referred to as the "Group."

1. Analysis of Operating Results

[Operating results for fiscal 2021]

Starting in the first quarter of the fiscal year ended December 31, 2021, the Group has changed our segment classifications. Furthermore, the figures for the previous fiscal year have been restated in accordance with the new segment classifications to make year-on-year comparisons.

1) Sales and earnings
	Fiscal 2021	Fiscal 2020	Increase (Decrease)
	Amount	Ratio
	Yen in billions	Yen in billions	Yen in billions	%
Revenue	3,246.1	2,695.2	550.8	20
Adjusted operating profit	394.3	207.4	186.9	90
Operating profit	376.8	62.5	314.3	503
Profit before tax	377.6	27.4	350.2	-
Profit (loss) attributable to owners of	394.0	(23.3)	417.3	-
parent

The Group has been implementing its Mid Term Business Plan (2021-2023), released in February 2021, with the aim of accomplishing its vision of "continuing to provide social value and customer value as a sustainable solutions company toward 2050" under its mission of "Serving Society with Superior Quality" of the Bridgestone Essence.

In terms of the Group's operating environment in fiscal 2021, the global economy has been heading toward recovery amid a scenario of countries around the world making progress in balancing novel coronavirus disease (COVID-19) countermeasures with economic activity, in conjunction with great strides having been made in administering vaccines. With respect to tire demand globally, demand for tires for new vehicles was affected by automotive production cuts due to the semiconductor shortage from the third quarter onward, but demand for replacement tires remained firm amid brisk business in the pre-owned car market in conjunction with a shortage of new vehicles and recovering global economic activity. In terms of costs, the Group's profitability has been subject to pressure from factors that include persistently surging rates for ocean freight, energy costs, and labor costs, along with a scenario of natural rubber and crude oil holding to high price range in tandem with global economic recovery ongoing since 2020. Furthermore, in North America, a pressure on tire supply accompanying the market-wide labor shortage against robust demand for replacement tires laid bare issues about supply measures.

Under such an environment, the Group expanded sales by swiftly promoting initiatives with pillars of "expense and cost structure reform" and "strengthening the premium business strategy" with a view to "rebuilding earning power" to improve profitability, and by swiftly responding to increased demand for replacement tires through executing flexible supply management underpinned by the global production system of the Company's strength.

As a result, the Group's revenue in fiscal 2021 were ¥3,246.1 billion, a year-on-year increase of 20%; adjusted operating profit was ¥394.3 billion, a year-on-year increase of 90%; operating profit was ¥376.8 billion, a year-on-year increase of 503%; profit before tax was ¥377.6 billion, compared to a

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