Yokohama Rubber : Earnings Report FY2026 First-Quarter Financial Results - Responses to changes in external environment & YX2026 progress - (26 1Qpresentation en transcripts)

Good afternoon everyone. I am Yokohama Rubber President Shinji Seimiya.

I would like to thank all of you for making time in your busy schedules to attend today's results briefing.

Today, I will present a brief summary of our results for FY2026 1Q.

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1. Executive Summary

2. FY2026 1Q (Jan.-Mar.) Results

3. Impact from Situation in Middle East & Our Response

4. FY2026 Full-Year Plan

5. YX2026 Progress

Contents

This table of contents shows the topics that I will cover today.

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0. Executive Summary

First, this slide summarizes the content of today's presentation.

Our 1Q results include record highs for sales revenue and business profit.

Our existing tire business achieved strong sales in Europe, Japan, and India, continuing the trend in 2025. Our OHT business achieved a particularly strong result, posting double-digit growth in sales.

The situation in the Middle East remains highly unpredictable, and at this time we expect the cost impact from rising crude oil prices to become even more severe in the second half of this year. We are responding by optimizing product prices and implementing various cost reduction measures. In addition, considering the yen is now weaker than our initial forex assumption, we think we will be able to absorb the cost increases caused by the situation in the Middle East over the course of the full year.

Our FY2026 earnings forecast is therefore largely unchanged from our initially announced plan. However, we have raised our operating profit and net profit forecasts to reflect the gain on the sale of the former Israel plant site that we announced in April.

In addition, the early closure of the U.S. plant in Salem, which had particularly high production costs, and the sale of assets on the site of the former Israel plant are contributing to the steady progress being made toward achieving goals of YX2026 despite the currently uncertain external environment.

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1. Executive Summary

2. FY2026 1Q (Jan.-Mar.) Results

3. Impact from Situation in Middle East & Our Response

4. FY2026 Full-Year Plan

5. YX2026 Progress

Contents

I will now provide some more details about our 1Q results.

FY2026 1Q (Jan.-Mar.) Business results

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1-1. FY2026 1Q (Jan.-Mar.) Business Results

This slide summarizes our 1Q results.

Sales revenue came to ¥303.8 billion, a YoY increase of ¥28.7 billion or 10.4%. Business profit totaled ¥44.4 billion, up ¥20.4 billion or 84.6% YoY.

Net profit reached ¥14.7 billion, up ¥6.2 billion or 72.6%.

Sales revenue, business profit, and business profit margin all reached new 1Q highs.

We were able to get off to a good start in 1Q despite the challenging external environment.

:Tire business (Excl. OHT business) OE&REP combined unit sales :Tire business (Excl. OHT business) REP unit sales

Tire unit sales results

(Excl. OHT business)

OE+REP

• Overall YoY

• ​Japan

• North America

• ​China

YoY YoY YoY

100％ 95% 110%

100％

REP YoY

104％

OE+REP

YoY

104％

REP YoY

OE+REP

YoY

83％

REP YoY

OE+REP

YoY

95％

REP YoY

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

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

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

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

• ​Europe

OE＋REP

YoY

114％

REP YoY

• ​Asia

• ​India

OE+REP

YoY

98％

REP YoY

OE+REP

YoY

116

％

REP YoY

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

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

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

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1-2. FY2026 1Q (Jan.-Mar.) Tire Unit Sales Results

This slide shows the regional trends in 1Q unit sales in our existing tire business, excluding OHT.

Globally, overall unit sales (OE+REP) were largely the same as a year ago, while REP increased 4% YoY.

Looking at individual regions, North American sales declined YoY, impacted by market conditions, but that decline was covered by double-digit sales growth in Europe , as well as growth in Japan and India, enabling overall sales to stay on pace with plan.

European sales growth was driven by the continued growth in sales of our high-inch tires. In Japan, our efforts to expand sales of replacement tires, especially summer tires, drove the growth in REP.

Agricultural machinery tire volume sales results (weight basis）

• OE+REP Total ◆REP

• ​OE

000

60,000.0

50,000.0

40

YoY

114%

YoY

107%

YoY

124%

23' 2O4E' 25' 26'

23' 24'REP 25' 26'

23' 24' OE 25' 26'

• ​Americas

• ​EMEA

• ​APAC

5,

YoY

110%

,0

YoY

125%

23' 24' 25' 26'

23' 24' 25' 26'

YoY

118%

23' 24' 25' 26'

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1-3. FY2026 1Q (Jan.-Mar.) OHT Agricultural Machinery Tire Volume Sales Results

Now let's look at the trend in sales volume of our OHT agricultural machinery tires.

The increase in agricultural machinery tires sales volume reflects our expanding share of the OE market as we are strengthening customer relations amid gradually rebounding demand. Y-ATG and Y-TWS promotion of a multi-brand strategy boosted sales of our replacement tires, resulting in a 14% YoY increase in OE and REP sales combined.

As the regional sales graphs show, we achieved double-digit growth in all regions.

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1. Executive Summary

2. FY2026 1Q (Jan.-Mar.) Results

3. Impact from Situation in Middle East & Our Response

4. FY2026 Full-Year Plan

5. YX2026 Progress

Contents

I will now explain the impact on our business from the Middle East situation and how we are responding.

Impact from soaring raw material prices and countermeasures

Raw materials procurement

(billion yen)

Impact on annual costs (relative to initial plan)

Costs absorbed by

countermeasures

≈¥2bn 2

≈¥13bn

Optimal

pricing

FY2026 1H supplies secured;

Procurement risks currently limited

≈¥23bn

Impact to date

≈¥38bn

Forex

changes

(from plan)

Others

Minimizing impact from

situation in Middle East

Raw mtls Freight Energy Raw mtls Freight Energy

Tires (Excl. OHT) OHT MB

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2-1. Impact from Situation in Middle East & Our Response

2

2

We currently expect rising costs due to soaring crude oil prices to increase annual costs by about ¥38 billion. This graph shows the expected cost increases in each area, with the biggest impact coming from the soaring costs of raw materials.

Our response to these cost increases starts with achieving optimal pricing. Of course, we also are working to mitigate these costs increases, including by conserving energy and improving efficiencies. In addition, we expect forex changes to weaken the yen against both the US dollar and the Euro more than we had assumed in our initial plan for FY2026. At this stage, we expect our countermeasures and the weaker yen to absorb the impact from the estimated ¥38 billion in cost increases.

Although the situation surrounding procurement of raw materials remains quite uncertain, our efforts to drastically reduce costs by including new suppliers in an expanding

supplier network have us on track to secure needed raw materials until the end of 1H, at a minimum. And the entire Yokohama Group is working together to ensure that production continues according to plan for the entire year.

Philippines plant

(PCR)

Thailand plant

(PCR/TBR)

Electricity cost

Actual

Initial plan

Diesel fuel usage amount

Cost to be reduced

Moved up shift from initially planned October to April

about 12%

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Introduced UPS (Uninterruptible Power Supply) Early shift to external power source

Plan to begin full-scale use of solar power

generation system

Accelerating investment in energy-efficient systems

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2-2. Impact from Situation in Middle East & Our Response: Reducing Energy Costs

This slide presents one of our additional cost reduction measures.

We have moved up planned measures to conserve energy at each of our plants. For example, our Philippines plant is shifting from the use of diesel fuel, and our Thailand plant plans to begin full-scale operation of its solar power generation system.

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1. Executive Summary

2. FY2026 1Q (Jan.-Mar.) Results

3. Impact from Situation in Middle East & Our Response

4. FY2026 Full-Year Plan

5. YX2026 Progress

Contents

I will now present our FY2026 full-year plan, which takes into consideration the responses and initiatives presented thus far.

Full-Year Plan

U

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3. FY2026 Full-Year Plan

Despite the impact from the situation in the Middle East, we expect to achieve our initial plan's forecasts for sales revenue and business profit.

Meanwhile, we have raised our forecasts for operating profit, from ¥173.0 billion to

¥191.5 billion, and net profit, from ¥90.0 billion to ¥109.0 billion. These upward revisions take into account the gain on the sale of the former Israel plant site completed in April.

As you can see, we now expect to achieve record highs in all key earnings categories, from sales revenue to net profit, as well as record high profit margins at each profit level.

While we have raised our net profit forecast, we plan to appropriately reconsider our dividend forecast after we see 2Q results.

13

1. Executive Summary

2. FY2026 1Q (Jan.-Mar.) Results

3. Impact from Situation in Middle East & Our Response

4. FY2026 Full-Year Plan

5. YX2026 Progress

Contents

That brings me to my last topic for today, the progress we are making with YX2026 measures related to production.

Progress in establishing new plants

New plant in China

Expansion of tire production volume

(unit)

Vizag +0.2 mn

Mexico +1.3 mn

China +1.0 mn

In addition to sales in China, expect exports to Japan & other Asian countries

Vizag +0.9 mn

China +2.0 mn

1.7 mn Vizag PCR in India

1.3 mn Mexico

Integrated local operations, from R&D to production & sales

1.5 mn

0.6 mn

R&D

Production

Sales

8.0 mn

9.0 mn

6.0 mn

China

(new plant

+ former plant's output)

Speed up response to local

market demand

Salem

New plant in Mexico

Existing plants

2025

2026

2027

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4-1. YX2026 Progress: Tire Business Strengthening Production Network

North America sales (GEOLANDAR, etc)

Production start in Jan 2027

(progressing as planned)

Production started March 2026 (ahead of initial June plan)

This slide presents the progress we have made in establishing new plants in China and Mexico.

At the new plant in China, we started production this March, three months ahead of the originally scheduled startup in June 2026, and the early startup includes the launch of new products made possible by shortened development times.

The new plant will not only produce tires for the Chinese market but will also function as a production base for exports to other Asian countries and the Japan market, which will help us quickly eliminate currently large backorders in those markets.

In addition, in May we established a new R&D center on the site of the new China plant. By creating a localized system that integrates all operations from R&D to production and sales, we aim to quickly introduce new products and elevate our presence in the Chinese market.

Meanwhile, at our new plant in Mexico, we are making steady progress toward the planned start of mass production in 2027. The Mexico plant will supply tires mainly for the North American market. As the major replacement of the Salem plant that we closed in 1Q, the Mexico plant's lower costs will improve our cost-competitiveness and enable us to increase production of our GEOLANDAR tires, our main product in North America.

These new plants will make a major contribution to our plan to expand production in our existing tire business. Despite the closure of the Salem plant in the United States, by combining the output from these two new plants with increased production at our Vizag plant in India and elsewhere, we expect to increase production of tires by 2.9 million units in 2026 and another 2.5 million units in 2027. This will result in a total increase of

5.4 million units in 2027 compared to 2025.

This expansion will be driven by the strong cost-competitiveness of the new Hangzhou

plant in China, the new plant in Mexico, and the Vizag PCR plant in India. 14

Reduced closing costs

¥20 billion

¥16 billion

Initial assumption

Result

≈¥700mn

2026

2027

Salem plant closure

• Financial impact

One-time cost ≈¥16 billion (FY2026)

Sale of former Israel plant site

• Financial impact

Gain on sale ≈¥30 billion (FY2026)

Business profit improvement

(from lower costs) (annual）

1600

1400

1200

1000

• YX2026 cumulative asset sales

≈¥140bn

≈¥80bn

≈¥90bn

R8ea0l0estate

600

Stocks, etc

2024

2025

2026

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4-2. YX2026 Progress: Salem Plant Closure & Sale of Former Israel Plant Site

This is the last slide.

I now will explain a bit more about the closure of the Salem plant in the U.S. and the sale of the former Israel plant site.

Thanks to smooth negotiations that progressed faster than we had expected, we were able to close the Salem plant in March, before the end of 1Q.

In our initial plan for FY2026, we assumed the plant's closure would generate a one-time cost of about ¥20 billion, based on other recent plant closures. However, the smooth negotiations enabled us to reduce that cost to about ¥16 billion.

Meanwhile, we expect the plant's closure to help improve business profit by reducing the costs posted in 2025 by about ¥700 million in 2026 and ¥6-7 billion from 2027.

Turning now to the sale of the site of the former OHT plant in Israel.

Amid rising uncertainties in the Middle East, our OHT group proceeded steadily with the sale negotiations, achieving the maximum sale price that we estimate will generate a gain of about ¥30 billion. Overall, the sale of the former Israel plant site amounts to an asset sale of about ¥50 billion, which raises the total for asset sales during the three years of YX2026 to about ¥140 billion.

We consider these two plant-related transactions to be important reform measures that reflect the Yokohama Group's ability to carry out the transformation being promoted under YX2026.

Although the current external environment remains filled with uncertainties, we will make every effort to achieve our targets for FY2026, the final year of YX2026, and meet the expectations of our shareholders and all other stakeholders.

That concludes my presentation.