Toyo Tire : Financial Results for 2nd Quarter of FY2025 (Script text)

Presenter: Takashi Shimizu, Representative Director, President & CEO

Thank you for your continued support.

Allow me to explain our "Financial Results for 2nd Quarter of FY2025," "Financial Forecast for FY2025," and then "Topics."

Let me walk you through the highlights of our financial results for the second quarter of FY2025.

Net sales reached a record high for the interim period.

Operating income also hit a record high for the period, driven chiefly by strong sales of large-diameter tires in North America.

Ordinary income and profit attributable to owners of parent declined year-on-year, primarily due to the recording of foreign exchange losses under non-operating profit and loss.

Given the current business confidence, sales environment, foreign exchange rates, and raw material prices, as well as tariff trends, we have revised the full-year financial forecast announced in February.

The forecast for operating income has been revised upward from the previous estimate to 90.0 billion yen.

In August, we celebrated the 80th anniversary of our founding. To express our gratitude for your continued support, we have declared a commemorative dividend of five yen per share, bringing the annual dividend forecast to 130 yen per share.

Here you see our consolidated financial results for the second quarter of FY2025.

Net sales reached 283.4 billion yen, which marks a record high for the period.

Operating income also reached a record high of 48.2 billion yen. This is driven by our strategic focus on boosting sales of priority products with high added value and by strong sales of large-diameter tires for light trucks in North America.

Ordinary income declined year-on-year to 43.7 billion yen, primarily due to the recording of foreign exchange losses. Profit attributable to owners of parent also decreased year-on-year to 33.3 billion yen.

This graph analyzes the factors contributing to year-on-year changes in operating income for the second quarter of FY2025.

For the Tire Business, sales factors pushed up operating income by 11.4 billion yen. The sum breaks down into negative 0.6 billion yen for volume effects, positive 12.5 billion yen for improved product price/mix effects, and negative 0.3 billion yen for unrealized profit in inventory.

Production cost pushed down operating income by 1.8 billion yen, while raw material costs lowered operating income by 5.1 billion yen, chiefly due to rising prices of natural rubber.

Forex rates reduced operating income by 2.3 billion yen, while ocean freight costs contributed to a decline of 0.7 billion yen.

As a result, operating income increased by 0.6 billion yen year-on-year.