Sumitomo Rubber Industries, Ltd. TSE:5110

Sumitomo Rubber Industries : 1Q Financial Report (January 1 - March 31, 2026)

Published

Source: MarketScreener

Sumitomo Rubber Indus tries , Ltd. Financial Report

(January 1 ~ March 31, 2026)

May 15, 2026



  • 2026 1st Quarter Financial Results Summary

    • Changes in Scope of Consolidation, Affiliated Companies

    • Highlights, Financial Results Summary

  • 2026 Annual Financial Results Forecast

    • Financial Results Forecast Summary

    • Capex, Depreciation, Tire Production Capacity etc.

    • Shareholder Returns etc.

  • 2026 1st Quarter Financial Results Summary

    • Changes in Scope of Consolidation, Affiliated Companies

    • Highlights, Financial Results Summary

  • 2026 Annual Financial Results Forecast

    • Financial Results Forecast Summary

    • Capex, Depreciation, Tire Production Capacity etc.

    • Shareholder Returns etc.

Consolidated Subsidiaries 85

（vs 2025 year-end : +1）

Equity-method Affiliates 3



（vs 2025 year-end : - ）

Newly Included +1

Excluded -

VIADUCTSI, informacijske

Tires tehnologije, d.o.o. (Slovenia / Other)



Sports

Industrial & Other



Newly Included -

Excluded -

Manufacturing

Companies

Sales Companies Other Companies

Domestic

1

Domestic

1

Domestic

7

Tires

Overseas

8

Overseas

29

Overseas

10



Asia Pacific

4

Asia Pacific

7

Asia Pacific

2

Europe and Africa

2

Europe and Africa

19

Europe and Africa

5

Americas

2

Americas

3

Americas

3

Domestic

1

Domestic

1

Domestic

2

Overseas

3

Overseas

12

Overseas

6



Sports

Thailand, Americas, Philippines

Malaysia, U.K., Canada, Australia, China, Hong Kong, South Africa, South Korea, Thailand, France, Germany

U.K.

Domestic

-

Domestic

3

Domestic

-

Overseas

3

Overseas

1

Overseas

-

Industrial & Other



Malaysia, China, Vietnam

Hong Kong

-

Total 88

Domestic 16

Overseas 72

Financial Results (2026 Jan.-Mar.)

  • Sales Revenue (Total: 302.2 B of yen, Tires: 259.9 B of yen) increased YOY, reached a record high

  • Business profit (Total: 16.8 B of yen, Tires: 14.8 B of yen) increased YOY

  • Sales of DUNLOP-brand tires in Europe began as scheduled in Jan. 2026, and sales expansion moved into full-scale operation in March.

Main initiatives

Expansion of DUNLOP-brand tires distribution network in Europe, U.S., and Australia

DUNLOP-brand tires in Europe were launched in Jan. 2026, and sales of our proprietary product BLUE RESPONSE TG began in Mar., strengthening competitiveness .

BLUE RESPONSE TG ranked No.1 overall in a tire test by the prestigious European automotive magazine Auto Motor und Sport (AMS).

Sales expansion of the next-generation all-season tire SYNCHRO WEATHER with Active Tread technology

SYNCHRO WEATHER sales volume s ignificantly surpassed the prior year, contributing to volume and mix improvement.

Project ARK is making steady progres s in profit generation and total cost reduction

2026 Q1 Actual: 2.0 B of yen

Minimized the impact of geopolitical tensions in the Middle East

As a result of initiatives such as securing raw materials, ensuring transportation routes, and implementing cost containment, the impact on business performance in Q1 was minimal.

Sales exceeded the plan at the beginning of the year mainly in the high-inch band, and SYNCHRO WEATHER led the market expansion in the all-season category.

In the low-inch band, performance was partly below plan; however, profit exceeded the plan due to an improved product mix.





SYNCHRO WEATHER

Number of units sold

Sales plan : 1 million units

Product

Completed the launch of the full lineup (112 s izes) by March

〇Customer voices

  • Demonstrated high driving performance regardless of summer or winter,

    No problems in all environments such as

    compacted snow, ice, and blizzards

    Excellent quietness and high-quality ride comfort

    Even if I run 40,000 km, I won't feel the difference from new



    it has excellent wear resistance and is highly valued for its long-term use value.



    〇Comments from dealers



    Nana Suganuma, a professional golfer

    under contract with XXIO

  • Distribution of peak seasons due to demand leveling, evaluated as a product that leads to optimized staffing

    The peak season is dispersed, so it's nice for the store

    Promotion

年

年

2025

2026

Q1

Q1

Sales revenue YOY approximately 4x expansion

Apr. - Dec.





  • Drove all-season demand through advertising campaigns featuring Shohei Ohtani.

  • Continued to reinforce option sales for new vehicles

Synergies from pricing strategy, account expansion in key markets, and proactive sales initiatives have steadily strengthened our market position. Leveraging new product launches and account expansion as twin drivers, we will further accelerate premiumization.





  • ：DUNLOP

  • ：FALKEN

Europe Units Sold (Passenger car tires)

*Only replacement market

Recovered to the

Product

Launched our first new product, 'BLUE RESPONSE TG'

  • March 2026: Launched with 99 sizes

  • Achieved the highest rating from

    the automotive magazine 'Auto Motor und Sport ' *1

    ：Monthly sales plan volume



    ー：Number of DUNLOP deals

    With GOODYEAR and logistics companies struggling to get up and running

    → resolved in February

    planned level

    Price

Strategic Improvement of Market Price Position

Place

  • 'BLUE RESPONSE TG' realizes the pricing strategy as planned

    DUNLOP

    Customer

    Transferred from GOODYEAR

    FALKEN

    Customer

    Customer base expansion in key European markets



  • As planned, over 40% of target customers were acquired in Q1 We will continue to steadily capture the remaining approximately 60% of the development potential

  • Commenced tire development for 4 models in 10 sizes for premium OEM.

December January February March

*1: One of the most influential automotive magazines in Europe

As a quantitative evaluation medium based on rigorous comparative testing, it has gained high trust from

European automakers and consumers

Developed to balance safety, handling, comfort, and durability at a high level. Ranked No.1 and awarded 'Outstanding*1' by "Auto Motor und Sport " enhancing recognition of DUNLOP's premium technology.

Ranked No.1 in the evaluation of

the major magazine "Auto Motor und Sport" (Germany)

*1 Outstanding: Evaluation given when the level of perfection is clearly outstanding, not given every time.







S-UHP

UHP HP STD

・One of the most trusted tire comparison and evaluation media in Europe, including OEM.

・Almost the highest rating for both wet and dry (9.6 points out of 10)

(Evaluated size: 195/55R16 91V XL)

Highly praised at the launch announcement test drive event @Circuito de Seville (Spain)

< Customer voices>・The handling is very stable. I was surprised that there was no difference

at all from dry on wet roads

・Performance that does not feel uncomfortable even if it is called UHP

・I have test-driven many products from various manufacturers, and this stands out as one of the most impressive.

Adopts an advanced tread compound using next-generation polymers, delivering

excellent road contact and reduced wear.

・It was very quiet and comfortable even in the city

While the overall market demand declined due to the impact of storms and heavy snowfall at the beginning of the year, FALKEN performed resilienthy. DUNLOP has been focusing on promoting handling at retail stores s ince February, and has





progressed largely in line with plan s ince March.



  • ：DUNLOP

  • ：FALKEN

North America Units Sold (Pass enger car tires *)

*Only replacement market

Promotion

Collaborative promotion with major wholesalers

  • While overall market demand

    Product

Launched our first new product, 'BLUE RESPONSE A/S'



  • December 2025: 44 size for PC launched

  • June 2026: 36 additional sizes for CUVs

    ー：Number of DUNLOP deals

    declined, the impact on sales has been limited.

    Price

Market Price Position Improvement

  • Retail prices brought in line with target levels versus

    other premium products.

    Place



December January February March

Sales channel design

  • Centered on FANATIC, maintaining premium pricing and building a network that ensures high-quality sales execution

  • Over 1,000 dealers purchased 'BLUE RESPONSE A/S' as of 31 March 2026.

    Enhancing outreach to potential dealers to expand the DUNLOP retail network.

    We have minimized the decline in sales through collaboration with major wholesalers, enhanced sales promotions, and expansion of sales channels.



    North America Units Sold (Pass enger car tires *)

    *Only replacement market

    Promotion



'BLUE RESPONSE A/S' launch event

  • ：DUNLOP

    Industry trends

    92%

    ー

    Excluding one-off factors (e.g., inventory

    build-up from resumed sales to major customers), sales increased YOY

    Q1 2025

    Q1 2026

  • ：FALKEN

2025年1Q

2026年1Q

WILDPEAK

Decline in demand (YOY)





Excluding



Q1 one-off factors

FALKEN

95%

101%

WILDPEAK

92%

107%



Project ARK Progress

The 3 elements of Project ARK

Against the cumulative target of 30.0 billions of Yen by the end of 2027,

26.2 billions of Yen has been identified as actionable measures.





Cross-departmental

DX and AI utilization



AI

TPS*1



"Visualization" Elimination of waste

Financial Impact of Project ARK

(billions of Yen) 2025

2026

Q1

results

After Q2 (financial

results have been factored in)

Q2

Jul.-Dec.

Results



At the time of the last financial settlement Already factored into prior results

Newly factored into current results Target amount



13.9

billions of Yen

5.2

billions of Yen

9.5

Effect of

additional measures

billions

4.3

billions of Yen

of Yen

2.8 billions of Yen







Main Measures and Ideas

2026

25years

26 years

27 years

26.2

Tires direct costs

+2.1

+1.2

+1.3

+3.3

Tires fixed costs

+0.0

+0.0

+0.0

+0.1

Tires expenses

+0.3

+0.5

+0.4

+1.4

Sports

+0.3

+0.1

+0.2

+0.4

Industrial & Other

+0.2

+0.1

+0.1

+0.4

Total

+2.8

+2.0

+2.0

+5.5

+9.5

3-year cumulative

/











TPS*1

*1 TPS: Toyota Production System

Project ARK policy effect amount factoring status at the time of this announcement

9.5 billions of Yen, including the amount of effect that was considered an "additional accumulation measure effect" at the time of the previous report, has been factored into the 2026 earnings forecast.

Feb. 12th 2026

Forecast

Raw material

△22.0

Price

+5.0

Forex

+9.0

Project ARK

+5.2

Other factors

+2.8

(billions of Yen)

Revised Forecast

2026

+4.3

112.0

Breakdown of 9.5 billions of Yen: Examples of major measures

  • Cross-site management across four Japan-based factories

    (e.g., Integration of power contracts)

  • Review and optimize existing IT services

  • Promoting the consolidation and abolition of company bases and sales offices due to the unification of Japan-based sales companies

  • Integration of HR functions across the business division and factories

+5.2

112.0

+4.3

+9.5

Cost Reduction at Thailand Factory

The 3 elements of Project ARK

Aiming to exceed 9.5 billions of Yen, reforms are underway to strengthen the profit base, with cost reduction accelerated at the Thailand factory through HQ-local integration.





Excerpt from the financial results materials released in February 2026

Cross-departmental

DX and AI utilization



TPS



AI

[Renewal of the firs t factory]

Dispatched engineers from Japan to invest resources in the launch of the SUN-TITAN SYSTEM.

Scheduled to start mass production ahead of the original plan

[Renewal of the Fac.-3]

Progress as planned for 2027 operation



"Visualization" Elimination of waste

Rapid ramp-up of innovative TBM

[Renewal of the Fac.-1] SUN-TITAN SYSTEM



[Renewal of the Fac.-3]

Improving the supply capacity and quality of premium products for Europe and the United States by replacing them with high-performance production equipment

Collaboration between local × HQ

Formed a cross-functional HQ-local team across procurement, engineering, logistics, sales, and quality."

Thailand Factory × HQ



Thorough elimination of muri-mura-muda from the TPS perspective

  • We will promote the development of technologies that make differences in raw materials "zero performance differences" and strengthen cost competitiveness.

  • Reduced manufacturing costs by improving production capacity bottleneck processes

TPS



Progress

In February and April, HQ functions deployed on-site to collaborate with local teams, supporting direct cost reduction, as well as fixed cost optimization and yield improvement from a TPS perspective.

Cost reduction impact (FY2026)

2.0 billions of Yen*1 (as of Feb. announcement) → 2.6 billions of Yen*1

*1: Including impact on raw material prices

Consolidated Financial Results (2026 Jan.-Mar.)

Billions of Yen

2026

Jan.-Mar.

2025

Jan.-Mar.

YOY

Sales Revenue

302.2

287.8

105%

Business Profit

(%)

*1,3

16.8

14.1

119%

5.6%

4.9%

Operating Profit

(%)

*3

15.1

12.3

122%

5.0%

4.3%

Profit

*2,3

8.6

3.6

241%

Actual

2025

1,207.1

90.8

7.5%

82.6

6.8%

50.4

*1. Business Profit : Sales Revenue - (COS + SGA)

*2. Profit : Profit attributable to owners of parent

*3. Accounting adjustments have been applied since 2nd quarter, 2022, as pursuant to IAS 29 "Financial Reporting in Hyperinflationary Economies". The above notes apply throughout this report.

Consolidated Sales Revenue / Profit (Jan.-Mar.)

Billions of Yen %：Profit Ratio ：Record High

250.5

276.8

291.4 287.8 302.2





24.8

8.0%

23.2

5.9%

14.8

14.2

5.7%

11.8

2.9%

8.0

7.8

4.0

2.8%

20.7

7.1%

4.9%

14.1

12.3

4.3%

3.6

5.6%

16.8

15.1

5.0%

8.6

2022 2023 2024 2025 2026

Sales Revenue Business Profit Operating Profit Profit attributable to owners of parent

Consolidated Sales Revenue / Business Profit by Reportable Segment (2026 Jan.-Mar.)

2026

Jan.-Mar.

2025

Jan.-Mar.

YOY

Sales Revenue

Tires

259.9

244.6

106%

Sports

32.2

32.4

99%

Industrial & Other

10.1

10.8

93%

Total

302.2

287.8

105%

Billions of Yen

Actual

2025

1,043.7

125.6

37.8

1,207.1

Business Profit

Tires

14.8

10.9 135%

Sports

0.9

1.7 53%

Industrial & Other

*

1.1

1.5 76%

Total

16.8

14.1 119%

79.8

6.8

4.1

90.8

*The elimination of inter-segment transactions is included.

Consolidated Business Profit by Reportable Segment (Jan.-Mar.)

：Record High

Billions of Yen

23.2



18.3

16.8

14.8

14.1

14.8

10.5

10.9

4.0

8.0

5.5

4.2

1.9

0.3

0.6

0.7

1.7

1.5

0.9

1.1



2022 2023 2024 2025 2026

Tires Sports Industrial & Other Business Profit

56.4 57.3

71.6



0.1

63.6

7.9

71.9

79.5

73.6

79.7 81.4

7.9

  • Industrial & Other

50.3

0.7

0.1

7.6 8.6

8.0

6.2

  • Sports

42.7

1.9

5.6

5.8

6.7

6.7

56.0

9.3

8.3

7.3

9.3

61.9

56.6

74.4

0.0

61.5

12.9

69.1 65.7

0.0 0.0

  • Tires

4.6

36.8

1.3

56.3

63.5

42.8

49.9

50.5

0.0

48.2 49.4

63.8

8.4

0.0

12.4

13.1

11.7

2022 2023 2024 2025 2026

Europe

45.4 47.9 47.8 44.3 46.7

67.3

2022 2023 2024 2025 2026

Japan

55.9

53.9

2022 2023 2024 2025 2026

1.7

6.3

1.9

38.2

7.7

1.8 1.9

3.6

38.8

7.2

4.6

1.9

40.3

0.1

1.4

35.8

1.5

37.6

1.7

35.6

0.2

1.8

34.8

1.1

32.5

33.9 37.2 39.2 37.4 36.8

North America

37.4

38.9

0.2

0.1 0.1

2022 2023 2024 2025 2026

Asia

2022 2023 2024 2025 2026

2022

2023

2024

2025

2026

Others

Consolidated Sales Revenue

250.5

276.8

291.4

287.8

302.2

% of Overseas

71%

71%

75%

72%

73%

*Sales Revenues on this page are classified by country or region based on customer's location.



2.8

(1.3)

0.8

5.2

2.6

2.1

3.0

3.6

8.9

7.7

6.0

(3.9)

(2.8)

4.4

4.4

2022 2023 2024 2025 2026

3.4

2022 2023 2024 2025 2026

Europe / Middle East / Africa

3.1 3.3

3.0

Japan *

0.0

2022 2023 2024 2025 2026

2022 2023 2024 2025 2026

North America

Asia / Oceania

2022

2023

2024

2025

2026

Business Profit of Tires

10.5

1.9

18.3

10.9

14.8

Overseas

5.2

(0.6)

16.2

7.9

11.2

% of Overseas

50%

-

88%

73%

76%

*Direct export sales from Japan that do not go through group sales companies are aggregated in Japan.

Raw Material

+10.0

Price

Natural Rubber +2.4

Pet. Related +7.6



+3.3

Volume & Mix

(7.7)

(1.7)

Costs

(0.3)

+2.5

(2.3)

Sports

(0.8)

2025

Jan. - Mar.

& Other

(0.3)

2026

Jan. - Mar.

16.8

Tires +3.9

Total +2.7

14.1



Direct Costs

Fixed

Forex

Response to D> brand (2.2)

Innovation-related costs (0.5)

Advertising expenses (0.5)

DX (ERP etc.) (0.3)

Expense related to termination of a U.S. factory +2.0



Expense

Industrial

Billions of Yen

North-American Anti-dumping Duties (5.3)

Average exchange rate

Unrealized Profit/Loss

(1.6)

USD

153

→

157

Other Volume & Mix

(0.7)

EUR

161

→

184

Jan.-Mar. Raw Material Price Volume & Mix Direct Costs Fixed Costs Forex Expense Sports

Industrial &

Other Jan.-Mar. YOY

2024→2025

2023→2024

23.2

8.0

(8.8)

+3.8

+2.8

(0.1)

+1.5

+11.1

(0.6)

(2.2)

+2.0

(1.4)

(1.5)

+5.3

(2.8)

(0.2)

(2.5)

(1.2)

+0.8

+0.1

14.1

23.2

(9.1)

+15.2

Main factor

1



Billions of Yen

2025

Jan.-Mar.

2026

Jan.-Mar.

YOY

Sales Revenue

287.8

302.2

+14.4

Cost of sales

(204.1)

(208.5)

(4.4)

Selling, general and

administrative expenses

(69.5)

(76.8)

(7.3)

Business profit

14.1

1

16.8

+2.7

Other income

1.0

2

0.9

(0.1)

Other expenses

(2.8)

3

(2.6)

+0.2

Operating profit

12.3

15.1

+2.7

Financial income

2.6

4

4.7

+2.1

Financial expenses

(10.9)

5

(5.1)

+5.8

Equity in earnings of affiliates

0.0

0.0

+0.0

Profit before tax

4.0

14.7

+10.7

Income tax expense

(0.8)

(5.1)

(4.3)

Non-controlling interests

0.4

(1.0)

(1.4)

Profit

3.6

8.6

+5.0

Business profit

Refer to page.6 and 15 to 21 for details.

2



Other income



Other non-operating profit

3



Other expenses





Other non-operating expenses Loss on retirement or sales

of non-current assets

4



Financial income





Gain on net monetary position Gain on valuation of derivatives Interest received

5



Financial expenses Foreign exchange loss Interest expenses

Actual vs 2025

0.8 B of yen +0.0 B of yen

(1.3) B of yen (0.1) B of yen

(0.6) B of yen (0.1) B of yen

2.5 B of yen +0.9 B of yen

1.3 B of yen +1.3 B of yen

0.8 B of yen (0.1) B of yen

(2.9) B of yen +5.1 B of yen

(2.2) B of yen (0.5) B of yen

Main factor

1





Billions of Yen

As of

Dec. 31, 2025

As of

Mar. 31, 2026

YOY

Current assets

679.3

700.9

1

+21.6

Non-current assets

780.6

789.7

2

+9.1

Total assets

1,459.9

1,490.6

+30.7

Current liabilities

379.9

403.1

+23.1

Non-current liabilities

343.7

340.4

(3.3)

Total liabilities

723.6

743.5

3

+19.8

Total equity attributable to owners of parent

Non-controlling

interest

716.1

20.2

725.7

4

+9.6

21.4

+1.2

Total equity

736.3

747.1

+10.8

Total liabilities and equity

1,459.9

1,490.6

+30.7

Current assets



Inventories

Trade and other receivables Other current assets

2



Non-current assets

Intangible assets (including goodwill) Tangible assets

3



Total liabilities



Bonds and loans payable Other non-current liabilities Income tax payable



Trade and other payables

4



Equity

Foreign currency translation adjustment Profit

Dividends paid

vs Dec. 31, 2025

+17.4 B of yen

+6.7 B of yen

(4.5) B of yen

+3.7 B of yen

+3.7 B of yen

+38.6 B of yen

+4.6 B of yen

(9.8) B of yen

(10.4) B of yen

+11.9 B of yen

+8.6 B of yen

(11.0) B of yen

Interest-bearing debt

+33.2 B of yen

(406.6→439.8)

Equity ratio

49.0% 48.7% (0.3)P

Changes in consolidated balance sheet Working to improve capital efficiency while reviewing capital structure

：

Total assets

ＲＯＥ ：

As of December31, 2024 1,341.1 Billions of yen 1.5%

As of December 31, 2025 1,459.9 Billions of yen 7.3%

As of March 31, 2026

1,490.6 Billions of yen

7.5% (Annual forecast)

665.3

Interest-bearing debt

331.2

679.3

Inventories

298.1

Cash & Cash

equivalents

Billions of Yen

Cash & Cash

equivalents

723.6

700.9

743.5

669.8

Inventories

290.9

Cash & Cash

equivalents

Inventories

315.6

671.4

Tangible assets 444.0

Intangible assets 59.1

Goodwill

736.3

Total equity attributable to owners of parent

716.1

747.1

Total equity attributable to owners of parent

725.7

780.6

Tangible assets 466.5

Intangible assets

174.1

Goodwill

789.7

Tangible assets 470.2

Intangible assets

177.5

Goodwill

Interest-bearing debt 406.6

Interest-bearing debt

439.8

675.8

Total equity attributable to owners of parent 656.1

Current assets

Non-current

assets

Liabilities

Equity

  • 2026 1st Quarter Financial Results Summary

    • Changes in Scope of Consolidation, Affiliated Companies

    • Highlights, Financial Results Summary

  • 2026 Annual Financial Results Forecast

    • Financial Results Forecast Summary

    • Capex, Depreciation, Tire Production Capacity etc.

    • Shareholder Returns etc.

Revised Forecast

2026

Jan.-Jun.

Actual

2025

Jan.-Jun.

YOY

Sales Revenue

620.0

572.2

108%

Business Profit

38.0

28.3

134%

(%)

6.1%

4.9%

Operating Profit

34.0

27.0

126%

(%)

5.5%

4.7%

Profit

20.0

14.4

139%

Feb. 12th 2026

Forecast

2026

Jan.-Jun.

Revised Forecast

2026

Apr.-Jun.

Actual

2025

Apr.-Jun.

620.0

317.8

284.4

38.0

21.2

14.2

6.1%

6.7%

5.0%

34.0

18.9

14.7

5.5%

6.0%

5.2%

20.0

11.4

10.8

Billions of Yen

【Forecast】Consolidated Sales Revenue / Profit (Jan.-Jun.)

Billions of Yen %：Profit Ratio ：Record High



620.0

587.0 572.2

561.2

512.1

42.0

7.1%

7.2%

42.3

6.1%

38.0

17.2

2.8%

14.2

12.6

2.5%

3.0%

17.1

16.8

3.0%

8.2

38.7

4.9%

28.3

27.0

4.7%

14.4

34.0

5.5%

20.0

2022

2023

2024

2025

2026 Forecast

Sales Revenue

Business Profit

Operating Profit



Profit

Revised Forecast

2026

Jan.-Jun.

Actual

2025

Jan.-Jun.

YOY

Sales Revenue

Tires

537.0

488.3

110%

Sports

65.5

64.7

101%

Industrial & Other

17.5

19.2

91%

Total

620.0

572.2

108%

Business Profit

Tires

33.5

22.2 151%

Sports

3.0

4.0 74%

Industrial & Other

1.5

2.1 72%

Total

38.0

28.3 134%

Feb 12th Forecast

Revised Forecast

Actual

2026

2026

2025

Jan.-Jun.

Apr.-Jun.

Apr.-Jun

537.0

277.1

243.8

65.5

33.3

32.3

17.5

7.4

8.4

620.0

317.8

284.4

33.5

18.7

11.3

3.0

2.1

2.3

1.5

0.4

0.6

38.0

21.2

14.2

Expense related to termination of a U.S. factory +3.5



Natural Rubber +3.5

Pet. Related +8.7



Raw Material

Price

+3.1

Volume & Mix

Freight Cost

North-American Anti-dumping Duties Unrealized Profit/Loss

Other Volume & Mix

(0.9)

(9.9)

+3.0

+7.0

+12.1

(1.8)

(1.0)

(0.6)

2026

Jan. - Jun.

2025

Jan. - Jun.

38.0

Tires +11.3

Total +9.7

28.3

Average exchange rate

USD 148 → 157

EUR 162 → 184



(0.9)

Direct

Costs

(2.4)

Fixed

Costs

Forex

Labor cost (1.4)



+7.4

Expense

(6.2)

Sports

Industrial & Other

Jan.-Jun. Raw Material Price Volume & Mix Direct Costs Fixed Costs Forex Expense Sports

Industrial &

Other Jan.-Jun YOY

Feb. 12th Forecast 2024 → 2025

28.3

42.3

+17.1

(13.8)

+4.8

+8.6

(1.5)

(0.2)

(3.3)

(0.7)

(3.4)

+4.5

+5.5

(4.2)

(7.9)

(6.0)

(1.0)

(2.9)

(0.6)

+0.7

38.0

28.3

+9.7

(14.0)

*1. ROIC : Net Business Profit After Tax / Invested Capital

*2. ROA : Business Profit / Total Assets

Feb. 12th 2026 Forecast

Revised Forecast

2026

Actual

2025

VS 2025

Sales Revenue

1,320.0

1,207.1

109%

Business Profit

(%)

112.0

8.5%

90.8

7.5%

123%

Operating Profit

100.0

82.6

121%

(%)

7.6%

6.8%

Profit

55.0

50.4

109%

2026

1,320.0

112.0

8.5%

100.0

7.6%

55.0

ROIC

*1

6.9%

6.2%

ROE

7.5%

7.3%

ROA *2

7.5%

6.5%

D/E Ratio

0.6

0.6

6.9%

7.5%

7.5%

0.6

Billions of Yen % : Profit Ratio

: Record High



1,320.0

1,098.7

1,177.4 1,211.9 1,207.1

8.5%

112.0

2.0%

22.0

15.0

1.4%

9.4

6.6%

77.7

64.5

5.5%

37.0

7.3%

87.9

11.2

0.9%

9.9

7.5%

90.8

82.6

6.8%

50.4

100.0

7.6%

55.0

2022 2023 2024 2025 2026 Forecast

Sales Revenue Business Profit Operating Profit Profit attributable to owners of parent

Revised Forecast

2026

Actual

2025

VS 2025

Sales Revenue

Tires

1,154.5

1,043.7

111%

Sports

127.5

125.6

102%

Industrial & Other

38.0

37.8

101%

Total

1,320.0

1,207.1

109%

Billions of Yen

Feb. 12th 2026 Forecast

2026

1,154.5

127.5

38.0

1,320.0

Business Profit

Tires

100.5

79.8

126%

Sports

7.0

6.8

102%

Industrial & Other

*

4.5

4.1

109%

Total

112.0

90.8

123%

100.5

7.0

4.5

112.0

*The elimination of inter-segment transactions is included.

2025

Natural Rubber +1.4

Pet. Related +0.1



Raw Material

+0.9

Fixed Costs



Volume & Mix

Direct

Costs

+24.8

+1.7

Price

+1.6

(5.5)

Forex

Labor cost (2.4)



+15.2

Expense

(18.0)

Sports

Average exchange rate

USD 150 → 157

EUR 169 → 184

+0.2

Response to D> brand (7.9)

DX (ERP etc.) (5.4)

Advertising expenses (3.0)

Innovation-related costs (2.1) Expense related to termination of a U.S. factory +5.7



Industrial & Other

+0.4

2026

Billions of Yen

it Q1 Q2 H2 Ave.

90.8

Un Natural Rubber 2026 $/k (TSR20) 2025 $/k

Freight Cost

North-American Anti-dumping Duties Unrealized Profit/Loss

Other Volume & Mix

(0.5)

(16.4)

+4.9

+36.9



bl 66 70 91 79

bl 75 76 69 72

g 1.72 1.83 1.88 1.83

g 1.94 1.95 1.71 1.83

Crude Oil 2026 $/b

(DUBAI) 2025 $/b

112.0

Raw

Volume

Industrial

Jan.-Dec.

Material

Price

& Mix

Direct Costs Fixed Costs

Forex

Expense

Sports

& Other

Jan.-Dec.

YOY

Tires +20.7

Total +21.2

Feb. 12th Forecast

2024 → 2025

90.8

87.9

+22.9

(0.7)

(3.4)

+25.3

+23.9

(25.3)

(1.6)

+4.2

(7.1)

+7.0

+6.2

(0.9)

(20.2)

(6.0)

+0.2

(1.0)

+0.4

+0.2

112.0

90.8

+21.2

+2.8

2025

Billions of Yen

Period

Business Profit

Factors

Raw

Material

Price

Volume &

Mix

Direct

Costs

Fixed

Costs

Forex

Expense

Sports

Industrial & Other

vs Previous year

Jan.-Mar.

14.1

(9.1)

(8.8)

+2.8

+1.5

(0.6)

+2.0

(1.5)

(2.8)

(2.5)

+0.8

Apr.-Jun.

14.2

(4.9)

(5.0)

+5.8

(1.7)

(0.1)

+2.5

(2.7)

(3.1)

(0.4)

(0.0)

Jul.-Dec.

62.5

+16.8

+13.1

+16.7

(25.1)

+4.9

+2.5

+3.3

+0.0

+1.9

(0.5)

Annual

90.8

+2.8

(0.7)

+25.3

(25.3)

+4.2

+7.0

(0.9)

(6.0)

(1.0)

+0.2

Jan.-Mar.

16.8

+2.7

+10.0

+3.3

(7.7)

(1.7)

(0.3)

+2.5

(2.3)

(0.8)

(0.3)

Apr.-Jun.

21.2

+7.0

+2.1

(0.2)

+6.8

(0.7)

(1.5)

+4.9

(3.9)

(0.2)

(0.2)

Jul.-Dec.

74.0

+11.5

(11.2)

(1.5)

+25.7

+4.1

(3.7)

+7.8

(11.8)

+1.2

+0.9

Annual

112.0

+21.2

+0.9

+1.6

+24.8

+1.7

(5.5)

+15.2

(18.0)

+0.2

+0.4

2026

vs Feb. 12th Forecast

+0.0 (22.0) +5.0 +0.9 +3.3 +1.6 +9.0 +2.2 +0.0 (0.0)

Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Annual Jan.-Mar. Apr.-Jun.

Jul.-Dec.

Annual

Jan.-Jun.

Jul.-Dec.

Annual

Domestic 120%

104%

98%

102%

105%

107%

98%

103%

103%

106%

103%

105%

Domestic 96%

91%

98%

93%

94%

96%

103%

99%

99%

96%

99%

98%

Overseas 91%

92%

92%

87%

90%

97%

103%

103%

102%

98%

103%

101%

Overseas 94%

96%

90%

92%

93%

96%

109%

117%

110%

106%

117%

111%

North 83%

97%

81%

87%

87%

89%

97%

122%

107%

97%

122%

109%

Europe 97%

90%

108%

98%

98%

113%

143%

135%

131%

129%

135%

132%

Asia 104%

95%

89%

96%

96%

98%

104%

105%

103%

100%

105%

103%

Others 94%

100%

86%

90%

92%

81%

97%

106%

98%

97%

106%

101%

Total 97%

95%

93%

93%

94%

97%

106%

109%

105%

103%

109%

106%

otal Tire Sales 23,850

23,690

24,210

25,800

97,560

23,220

25,030

54,610

102,860

48,870

54,610

103,480

vs Previous year

2025 Actual 2026 Jan.-Mar. Actual, Apr.-Dec. Forecast Feb. 12th 2026 Forecast

O.E.

Rep. O.E.

Rep.

Details

America

T

(000 Units)

vs Previous Year

Actual 2025 Jan.-Mar. Actual 2025 Jan.-Dec.

O.E. Rep. Total Composition ratio O.E. Rep. Total Composition ratio

Passenger Tires

102%

94%

96%

87%

96%

94%

94%

88%

Advanced Tires

※

107%

96%

100%

45%

99%

95%

97%

47%

Truck & Bus Tires

109%

98%

99%

3%

112%

93%

95%

4%

& Other Tires

102%

106%

104%

9%

96%

91%

93%

8%

Total

102%

95%

97%

100%

97%

93%

94%

100%

Actual 2026 Jan.-Mar. 2026 Jan.-Dec. Forecast

vs Previous Year

Motorcycle, Industrial

O.E.

Rep.

Total

Composition ratio

O.E.

Rep.

Total

Composition ratio

s 102%

96%

98%

88%

103%

108%

107%

89%

res 101%

102%

102%

47%

108%

116%

113%

50%

res 104%

85%

87%

3%

97%

96%

96%

3%

ustrial 96%

89%

92%

9%

97%

94%

95%

8%

101%

95%

97%

100%

102%

107%

106%

100%

Passenger Tire

Advanced Ti

Truck & Bus Ti

Motorcycle, Ind & Other Tires

Total

Premium Tires Composition Ratio by Year

Actual 2024

Actual 2025

2026 Forecast

Premium Tires

O.E. Rep. Total

56% 42% 46%

57% 44% 47%

60% 47% 50%

*Premium Tires

Differentiated products(SYNCHRO WEATHER, WILDPEAK, European all-season tires, Winter tires, etc. ), SUVs and Passenger car tires with a size of 18" or larger

Unit : 000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

110

*Numbers shown in the bar graph are YOY % by region.

90

101

93

98

110

82

93

95

98

107

120

87

100

100

106

96

118

103

95

92

100

104

98

98

131

105

94

88

85

98

95

85

77

98

94

111

87

94

99

96

103

  • North America

  • South and Central America

  • Europe

  • Africa

  • Middle East

  • Asia

  • Oceania

Forex (USD)

2021 2022 2023 2024 2025 2026 Forecast

110 132 141 152 150 157

10.5

9.4

10.1

(0.6)

(16.3)

(4.1)

(2.4)

(9.3)

(15.7)

(14.7)

(19.0)

(20.0)

(18.8)



17.6

(29.0)

2022 2023 2024 2025 2026

Cash flows from operating activities Cash flows from investing activities Free cash flow

No change s ince

Feb. 12th 2026 Forecast

110.0

68.0

55.7

62.9

55.9

57.3 62.2

62.8

55.6

8

50.3

49.5

28.4

35.4

36.2

45.7

45.8

61.0

58.

Adjustments for hyperinflation 2.4

Adjustments for hyperinflation 4.2

Adjustments for hyperinflation 4.4

Adjustments for hyperinflation 5.2

Adjustments for hyperinflation 2.7



2021 2022 2023 2024 2025 2026 Forecast

Total Capex Overseas Depreciation

No change s ince

Feb. 12th 2026 Forecast

68,800

3,150 3,700

1,700

2,700

69,000

3,200

3,700

1,700

2,850

69,930

3,810

3,700

1,700

3,170

66,410

3,700

1,700

3,460

66,530

3,700

1,700

3,580

64,410

3,700

1,700

*

Unit：t / Month

  • U.S.

  • Turkey

  • South Africa

3,580

  • Brazil

15,700

15,700

15,700

15,700

15,700

15,700

  • Thailand

2,950

2,950

2,950

2,950

2,950

2,950

  • China (Hunan)

7,200

7,200

7,200

7,200

7,200

5,700

  • China (Changshu)

5,100

5,100

5,100

5,100

5,100

5,100

  • Indonesia

750

750

750

750

750

730

  • Izumiotsu

9,350

9,350

9,350

9,350

9,350

9,130

  • Miyazaki

6,150

6,150

6,150

6,150

6,150

6,010

  • Nagoya

10,350

10,350

10,350

10,350

10,350

10,110

  • Shirakawa

2021/12

2022/12

2023/12

2024/12

2025/12

2026/12 Forecast

% of Overseas

61%

61%

62%

60%

60%

60%

YOY

100%

100%

101%

95%

100%

97%

*Following changes in the number of operating days, we have revised the production capacity of each factory.