Yokohama Rubber Co., Ltd. TSE:5101

Yokohama Rubber : Earnings Report Financial Results Briefing Material (26 1Qmanagement en transcripts)

Published May 27, 2026 at 9:20 a.m. UTC

Source: MarketScreener

FY2026 First-Quarter Financial Results

Briefing Material

May 15, 2026

The Yokohama Rubber Co., Ltd.

Good afternoon.

I am Masahiro Yuki, Member of the Board in charge of the Corporate Finance & Accounting Dept. and the IR Dept.

I will present our financial results for FY2026 1Q and our 1H and full-year forecasts.

Results for FY2026 First-Quarter

I begin with our consolidated results for 1Q.

Exchange Rates TSR20* WTI

US$ 157 yen

Profit and Loss (1Q)

EUR 184 yen

181 cents

72 dollars

153 yen (previous year) 161 yen (previous year) 195 cents (previous year)

71 dollars (previous year)

+4 yen

+23 yen

-14 cents

+0 dollar

*SICOM TSR20 1M

(billion yen)

	2026 Jan.-Mar.			2025 Jan.-Mar.	Change	Change (%)	Exchange rate impact	Change excluding impact of exchange rates
Sales revenue Recor		high	303.8	275.1	+28.7	+10.4%	+17.7	+11.0
Business profit before PPA Recor amortization *1 (Profit margin) Recor		high high	48.1 (15.8%)	30.0 (10.9%)	+18.1 (+4.9%)	+60.4%	+6.0	+12.2
Business profit *2 Recor		high	44.4	24.1	+20.4	+84.6%	+6.1	+14.3
(Profit margin) Recor		high	(14.6%)	(8.7%)	(+5.9%)
Operating profit	26.0			19.3	+6.7	+34.5%	+5.5	+1.1
(Profit margin)	(8.6%)			(7.0%)	(+1.6%)
Profit *3	14.7			8.5	+6.2	+72.6%

*1 Business profit before PPA amortization =Sales revenue- (Cost of sales + SG&A expenses-PPA amortization, etc.) *2 Business profit= Sales revenue- (Cost of sales + SG&A expenses) *3 Profit attributable to owners of parent

As the table on this slide shows and President Seimiya explained in his presentation, we posted record highs in sales revenue and business profit and business profit margin.

Operating profit and net profit did not reach new highs owing to the posting of a one-time expense of ¥13.0 billion on the closure of the U.S. tire plant in Salem, Virginia. However, we still achieved strong growth in both figures, with operating profit increasing 34.5% YoY to ¥26.0 billion and net profit rising 72.6% to ¥14.7 billion.

		2026 Jan.-Mar.	2025 Jan.-Mar.	Change	Change (%)
Sales revenue	Tires total (Tires) (OHT)	278.1	250.3	+27.8	+11.1%
		(172.6)	(162.0)	(+10.7)	(+6.6%)
		(105.5)	(88.3)	(+17.1)	(+19.4%)
	MB	24.0	23.0	+1.0	+4.2%
	Other	1.7	1.8	-0.1	-4.5%
	Total	303.8	275.1	+28.7	+10.4%

Business profit	Tires total	42.0	22.2	+19.8	+89.1%
	(Tires)	(30.2)	(18.4)	(+11.8)	(+64.5%)
	(OHT)	(11.8)	(3.9)	(+8.0)	(+206.8%)
	MB	2.2	1.8	+0.4	+21.2%
	Other	0.2	0	+0.2	-
	Intersegment eliminations	0	0	+0	+267.8%
	Total	44.4	24.1	+20.4	+84.6%

+6.0 (+5.0) (+0.9)	+13.8 (+6.8) (+7.0)
+0.1	+0.3
-	+0.2
-	+0
+6.1	+14.3

(billion yen)

Exchange rate impact

Change excluding impact of exchange rates

+17.2

(+7.7)

(+9.5)

+10.6

(+3.0)

(+7.6)

+0.5 - +17.7 +0.5 -0.1 +11.0

Business Segment (First-Quarter)

Next, this slide shows 1Q results for each business segment.

Overall tire segment 1Q sales revenue totaled ¥278.1 billion, 11.1% higher than a year ago.

Our existing tire business sales revenue increased 6.6% YoY on strong sales in Japan, Europe, and India and some other regions.

The OHT business achieved a 19.4% increase in sales revenue on considerably large growth in volume sales of both OE and replacement (REP) tires.

MB segment sales revenue came to ¥24.0 billion, 4.2% more than a year ago. Overall tire segment business profit was ¥42.0 billion, a rather large YoY increase of

¥19.8 billion.

That large increase reflects sizable increases in existing tire business profit, up ¥11.8 billion YoY, and OHT business profit, up ¥8.0 billion YoY.

MB segment business profit also increased, rising ¥0.4 billion to ¥2.2 billion.

2026 First-Quarter

Marine freight +0.3

(Volume -0.7)

(Unit price +0.7)

(Loading efficiency +0.2)

Factors that boosted (billion yen)

business profit

Factors that reduced business profit

Distribution cost -0.3

Prices +2.6

MIX +1.5

Unrealized inventories -2.0

US$ 157 yen 153 yen (previous year) +4 yen

EUR 184 yen 161 yen (previous year) +23 yen

OHT

Other

+0.4 +0.2

Raw material prices Sales volume Production costs Prices/MIX Fixed cost

-0.1 -0

-0.3

+2.0

+8.0

+5.3

Business profit

for previous fiscal year

+5.0

Natural rubber +0.5

Synthetic rubber +2.2

Compound agent +1.9

Other

+0.7

Exchange rate impact ($・ € →¥) +0.9 Exchange rate impact (etc.→$・ €) +1.5 Raw material prices +3.7

Sales volume +2.9

Logistics cost, etc. -0.3

Production cost +0.2

Prices/MIX -2.4

Fixed cost -0.9

G-OTR +2.3

24.1

2025 2026

Factor Analysis of Business Profit

Business profit: +20.4 billion yen

Tires total: +19.8

MB/Other +0.6

Exchange

rate difference

-0.1

Logistics cost, etc.

Business profit for 2026

44.4

This slide presents a factor analysis of the YoY change in 1Q business profit. First, let's look at the main factors affecting our existing tire business.

A weaker yen contributed ¥5.0 billion to the increase in 1Q business profit. Raw material prices, which had a large negative impact in 1Q 2025 owing to soaring market prices, contributed ¥5.3 billion to higher 1Q business profit this year. Sales volume had a rather minor negative impact of ¥0.1 billion as the impact from lower sales in North America owing to unfavorable weather conditions and some other factors was largely offset by strong sales in Japan, Europe and other regions. The contribution from prices/MIX include ¥2.6 billion from price hikes implemented last year and another ¥1.5 billion from MIX improvements generated by an increase in our AGW sales ratio on strong sales of snow tires and winter tires at the start of the year and strong sales of high-inch tires in Europe.

Overall, existing tire business profit increased a sizable ¥11.8 billion YoY.

Meanwhile, in the OHT business at Y-ATG and Y-TWS, the impact from forex changes contributed ¥2.4 billion to profit growth in 1Q, lower raw material prices added another

¥3.7 billion, and a 14% YoY increase in sales volume driven by higher sales of agricultural machinery tires contributed another ¥2.9 billion.

The G-OTR business contributed ¥2.3 billion to 1Q business profit growth as its profitability was improved by the absence of one-time acquisition-related expenses posted in 1Q 2025. Overall, the OHT business including G-OTR contributed ¥8.0 billion to growth in 1Q business profit.

The MB segment contributed ¥0.4 billion to profit growth as segment profit increased on strong sales of its marine products and defense-related equipment and its various efforts to improve profitability, including cost-reducing structural reforms.

	Mar. 31, 2026	Dec. 31, 2025	Change
Current assets	847.5	826.2	+21.3
Cash and cash equivalents	93.6	107.4	-13.8
Trade and other receivables	350.1	334.0	+16.1
Inventories	332.1	319.1	+13.0
Other assets	71.8	65.7	+6.0
Non-current assets	1,198.7	1,172.2	+26.5
Total assets	2,046.2	1,998.4	+47.9
Liabilities	993.6	958.1	+35.5
Equity	1,052.6	1,040.2	+12.4
Total liabilities and equity	2,046.2	1,998.4	+47.9

Interest-bearing debt*1	602.6	535.8	+66.8
Ratio of equity attributable to owners of parent (%)	51.0%	51.6%	-0.6%
D/E ratio	0.58	0.52	+0.06
Net D/E ratio	0.49	0.42	+0.07

(billion yen)

*1: Interest-bearing debt does not include lease liabilities

Financial Position (Comparison with the end of the previous year)

Now, let's look at our financial position as of March 31, the end of 1Q.

Total assets of ¥2,046.2 billion represent a ¥47.9 billion increase from the end of FY2025. Our shareholders' equity ratio is 51.0%, the D/E ratio is 0.58, and the net D/E ratio is 0.49.

With the trend toward a weaker yen continuing in the forex market, an increase in our foreign currency translation reserve has helped keep our shareholders' equity ratio at around 51%, and we continue to seek to maintain that ratio at or above 50%.

	2026 Jan.-Mar.	2025 Jan.-Mar.
CF from operating activities (Excluding tax impact of gains from the sale of cross-shareholdings, etc.)	-29.1 (-15.5)	-18.9
CF from investing activities	-37.0	-162.7
Free CF	-66.2	-181.6
CF from financing activities	49.6	136.4
Closing balance of cash and cash equivalents	93.6	89.4

(billion yen)

Change

-10.2

+125.7

+115.4

-86.8

+4.2

*Excluding tax impact of gains from the sale of cross-shareholdings, etc. refers to the increase taxes paid on the gains on sale of cross-shareholdings, etc.

State of Cash Flows

This slide summarizes our cash flows during 1Q.

Cash flow from operating activities was a minus ¥29.1 billion.

The negative cash flow is due mainly to provisional tax settlements and larger final tax payments resulting from minimized interim payments. Also, as I have explained at previous results briefings, our cash flow reflects the impact from taxes on gains on the sale of cross-shareholdings.

Cash flow from investing activities again resulted in a net outflow of ¥37.0 billion, mainly reflecting expenditures related to the construction of the new plants in Mexico and China. As a result, free cash flow in 1Q was minus ¥66.2 billion.

Earnings Forecast for FY2026

Next is our earnings forecasts for FY2026.

	2026 1H forecast		2025 result	Change	Change (%)	2026 previous forecast	Change from previous forecast
Sales revenue Rec	ord	610.0	579.2	+30.8	+5.3%	610.0	-
			579.2	+30.8	+5.3%	610.0	-
Business profit before PPA Rec hig amortization *1 (Profit margin) Rec hig	ord h	81.8	72.1	+9.7	+13.4%	81.8	-
	ord h	(13.4%)	(12.5%)	(+0.9%)		(13.4%)	-
Rec Business profit *2 hig	rd h	75.0	62.1	+12.9	+20.7%	75.0	-
(Profit margin) Rec hig	ord h	(12.3%)	(10.7%)	(+1.6%)		(12.3%)	-
Operating profit Rec hig	ord h	86.0	54.9	+31.1	+56.8%	67.5	+18.5
(Profit margin)		(14.1%)	(9.5%)	(+4.6%)		(11.1%)	(+3.0%)
Profit *3	45.0		35.5	+9.5	+26.6%	26.0	+19.0

Forecasts after April 2026

US$ 153 yen

Exchange Rates

EUR 178 yen

TSR20 * WTI

194 cents

145 yen (previous forecast) 171 yen (previous forecast)

178 cents (previous forecast)

+8 yen

+7 yen

+16 cents *SICOM TSR20 1M

93 dollars

63 dollars (previous forecast)

+30 dollars

(billion yen)

Profit and Loss Projections (First Half) Changed from the previous forecast

I begin with our profit/loss projections for 1H.

Our revised assumptions from April shown at the top of this slide reflect current conditions. We now assume USD/JPY of 153 and EUR/JPY of 178. For the prices of key raw materials, we now assume 194 cents for TSR20 grade natural rubber and $93 for WTI crude oil.

As the table shows, our forecasts for sales revenue and both business profit categories are unchanged from our previously announced figures.

However, we have raised our forecasts for operating profit and net profit to reflect the sale of the former Israel plant site, which we announced in a timely disclosure notice, as well as costs related to the closure of the U.S. plant in Salem, Virginia, and the estimated impact on non-operating income from the revision in our assumed exchange rates.

Our revised forecasts are ¥86.0 billion for operating profit, an increase of ¥18.5 billion from our initial 1H forecast, and ¥45.0 billion for net profit, an increase of ¥19.0 billion.

		2026 forecast		2025 result	Change	Change (%)	2026 previous forecast	Change from previous forecast
Sales revenue Rec		ord	1,300.0	1,235.0	+65.0	+5.3%	1,300.0	-
hig		h
Business profit before PPA Rec hig amortization *1 Rec (Profit margin) hig		ord h ord h	201.4 (15.5%)	183.9 (14.9%)	+17.5 (+0.6%)	+9.5%	201.4 (15.5%)	- -
Rec Business profit *2 hig		rd h	188.0	166.6	+21.4	+12.9%	188.0	-
(Profit margin) Rec hig		ord h	(14.5%)	(13.5%)	(+1.0%)		(14.5%)	-
Rec Operating profit hig		ord h	191.5	152.9	+38.6	+25.2%	173.0	+18.5
(Profit margin) Rec hig		ord h	(14.7%)	(12.4%)	(+2.3%)		(13.3%)	(+1.4%)
Profit *3	Rec	rd	109.0	105.4	+3.6	+3.4%	90.0	+19.0
hig		h

Forecasts after April 2026

US$ 153 yen

Exchange Rates

EUR 178 yen

TSR20 * WTI

182 cents

145 yen (previous forecast) 171 yen (previous forecast)

176 cents (previous forecast)

+8 yen

+7 yen

+6 cents *SICOM TSR20 1M

88 dollars

63 dollars (previous forecast)

+25 dollars

(billion yen)

Profit and Loss Projections (Full Year) Changed from the previous forecast

Next is our full-year forecast.

Our forex and raw material assumptions are as shown at the top of the slide.

While the Middle East situation creates many uncertainties, we are sticking to our previously announced forecasts for sales revenue down to business profit, same as in our 1H forecast. However, we have raised our projections for operating profit and net profit. We now forecast full-year operating profit will reach ¥191.5 billion, an upward revision of ¥18.5 billion, and net profit will rise to ¥109.0 billion, ¥19.0 billion higher than our previous forecast.

As the table shows, we now forecast record highs for all figures from sales revenue down to profit (net profit attributable to owners of the parent).

		2026 forecast	2025 result	Change	Change (%)
Sales revenue	Tires total (Tires) (OHT)	554.5 (347.0) (207.5)	523.6 (337.5) (186.1)	+30.9 (+9.5) (+21.4)	+5.9% (+2.8%) (+11.5%)
	MB	52.0	51.3	+0.7	+1.3%
	Other	3.5	4.3	-0.8	-19.1%
	Total	610.0	579.2	+30.8	+5.3%

2026 previous forecast	Change from previous forecast
554.5 - (347.0) - (207.5) -
52.0 -
3.5 -
610.0 -

Business profit	Tires total (Tires) (OHT)	69.4 (48.4) (21.0)	56.6 (42.4) (14.2)	+12.8 (+6.0) (+6.8)	+22.6% (+14.3%) (+47.5%)
	MB	5.5	5.2	+0.3	+6.7%
	Other	0.1	0.4	-0.3	-73.2%
	Intersegment eliminations	-	-0	+0	-
	Total	75.0	62.1	+12.9	+20.7%

69.4 -

(48.4) -

(21.0) -

5.5 -

0.1 -

- -

75.0 -

(billion yen)

Business Segment (First Half) No changes from the previous forecast

This slide presents our 1H forecasts for each business segment.

		2026 forecast	2025 result	Change	Change (%)
Sales revenue	Tires total (Tires) (OHT)	1,183.0	1,121.3	+61.7	+5.5%
		(775.0)	(750.1)	(+24.9)	(+3.3%)
		(408.0)	(371.1)	(+36.9)	(+9.9%)
	MB	107.0	105.6	+1.4	+1.4%
	Other	10.0	8.1	+1.9	+23.1%
	Total	1,300.0	1,235.0	+65.0	+5.3%

2026 previous forecast	Change from previous forecast
1,183.0 - (775.0) - (408.0) -
107.0 -
10.0 -
1,300.0 -

Business profit	Tires total (Tires) (OHT)	174.6 (133.7) (40.9)	155.0 (123.7) (31.3)	+19.6 (+10.0) (+9.6)	+12.7% (+8.1%) (+30.8%)
	MB	12.3	11.1	+1.2	+10.9%
	Other	1.1	0.5	+0.6	+112.3%
	Intersegment eliminations	-	-0	+0	-
	Total	188.0	166.6	+21.4	+12.9%

174.6 -

(133.7) -

(40.9) -

12.3 -

1.1 -

- -

188.0 -

(billion yen)

Business Segment (Full Year) No changes from the previous forecast

And this slide presents our full-year forecasts for each business segment.

As our 1H and full-year forecasts for consolidated sales revenue and business profit are unchanged from previously announced figures, so are the forecasts for each business segment.

That concludes my presentation. Thank you for your kind attention.

Cautionary Notes Regarding Forecasts

Forecasts and outlooks included in this material are based on the judgment of the Company's management using currently available information.

Actual results and earnings may differ from the forecasts and outlooks included in the material

due to various risks and uncertainties.

Japan	104% 102% 105%
North America	83% 86% 82%
Europe	114% 128% 114%
China	95% 66% 128%
Asia	98% 94% 99%
India	116% 99% 117%
Others	102% - 102%
Total	100% 91% 104%

FY2026 full year plan Total OE REP			Regional sales composition FY2026 1Q FY2026 full year plan
101%	101%	100%	41%	39%
99%	92%	101%	14%	17%
112%	94%	112%	10%	9%
101%	98%	104%	12%	13%
105%	95%	108%	9%	9%
111%	88%	112%	5%	5%
107%	-	107%	9%	8%
102%	99%	104%	100%	100%

Americas	117% 118% 116%
EMEA	108% 124% 99%
APAC	124% 115% 127%
Total	112% 122% 107%

FY2026 full year plan Total OE REP			FY2026 1Q FY2026 full year
111%	107%	112%	North America	102%	102%
110%	108%	112%	Europe	95%	100%

113%	119%	111%			*Our Estimate
111%	109%	112%

Tire business (passenger cars, trucks & buses, etc.) YoY unit sales growth by region

YoY growth rate of combined tire sales volume for OHT (Y-ATG & Y-TWS, excluding G-OTR business)

AG tire replacement demand YoY

(Reference) Tire Unit Sales YoY Growth

FY2026 1Q result (Jan.-Mar.） Total OE REP

2022 1Q 2023 1Q 2024 1Q 2025 1Q 2026 1Q

vs2025

101%

vs2025

99%

18-inch & larger

Sales ratio of 18" & larger tires 26% in 2026 1Q

29% in 2026 (Plan)

WINTER

2022 1Q 2023 1Q 2024 1Q 2025 1Q 2026 1Q

2026

Plan

47％

2022 1Q 2023 1Q 2024 1Q 2025 1Q 2026 1Q

vs2025

98%

vs2025

132%

AGW sales ratio

(unit basis）

Year-on-year unit sales growth rate (1Q)

GEOLANDAR

ADVAN

(Reference) Tire Business Sales of High-Value-Added Tires in 2026

(Unit: Thousand tons)

Japan

2022 1Q

2023 1Q

2024 1Q*1

2025 1Q*2

2026 1Q

Overseas

Total

114

104

135

143

*1 Y-TWS consolidation from 2Q 2023

*2 G-OTR consolidation from 1Q 2025

2026 1Q

2025 1Q

2024 1Q

2023 1Q

2022 1Q

32％

28％

38％

33％

62%

67%

72%

68%

100

Japan Overseas

200

Yokohama Rubber Group tire rubber production volumes

(Reference) Tire Production Volumes