Sumitomo Rubber Industries : 1Q Financial Report (January 1 - March 31, 2024)

Financial Report

(January 1 ~ March 31, 2024)

May 13, 2024

Key Subjects

2024 1st Quarter Financial Results Summary

Changes in Scope of Consolidation, Affiliated Companies

Financial Results Summary

2024 Annual Financial Results Forecast

Financial Results Forecast Summary

Capex, Depreciation, Tire Production Capacity etc.

Shareholder Returns

2

Summary of Financial Results

2024 1st Quarter Financial Results Summary

Changes in Scope of Consolidation, Affiliated Companies

Financial Results Summary

2024 Annual Financial Results Forecast

Financial Results Forecast Summary

Capex, Depreciation, Tire Production Capacity etc.

Shareholder Returns

3

Changes in Scope of Consolidation

Consolidated Subsidiaries	84	Equity-method Affiliates	3
(vs 2023 year-end : (13) )		(vs 2023 year-end : - )
Newly Included +1	Excluded	(14)	Newly Included -	Excluded	-

Tires

DUNLOP TYRE	Dunlop Tire Hokkaido Ltd.
JAPAN,LTD.(Japan/Sales)*	And 10 other companies*
	(Japan/Sales)
	Dunlop Tire Trading (Tianjin)
	Co.,Ltd.(China/Sales)

Sports

Industrial & Other

Lonstroff AG (Switzerland/Manufacture) Lonstroff Medical Elastomer d.o.o.(Slovenia/Manufacture)

*As of January 1, 2024, Dunlop Tire Hokkaido Ltd. and 10 other domestic tire sales subsidiaries have been merged into Dunlop TYRE JAPAN,LTD. along with part of the
Replacement Sales Division function of Sumitomo Rubber Industries Tire Domestic Operations.	4

Affiliated Companies

Manufacturing Companies	Sales Companies	Other Companies
Domestic 1	Domestic 1	Domestic 7

Tires

Overseas 8

Asia Pacific	4
Europe and Africa	2
Americas	2

Overseas 30

Asia Pacific	8
Europe and Africa	19
Americas	3

Overseas	6
	Asia Pacific	2
	Europe and Africa	2
	Americas		2

Sports	Domestic	1	Domestic	1	Domestic	3
Overseas	3	Overseas	12	Overseas	7

Thailand, U.S., Philippines

Malaysia, U.K., Canada,

Australia, China, Hong Kong,

South Africa, South Korea,

Thailand, France, Germany

U.K.

Industrial	Domestic	1	Domestic	2	Domestic	-
Overseas	3	Overseas	1	Overseas	-
& Other
						-
		Malaysia, China, Vietnam		Hong Kong		Total 87

Domestic 17

Overseas 70

5

Highlights

2024 1st Quarter Financial Results

Sales revenue(291.4 B of yen), business profit(23.2 B of yen), operating profit(20.7 B of yen) and profit attributable to owners of parents(24.8 B of yen) have reached record high in the 1st quarter. Business profit(%) was 8.0%.

Tires: Sales revenue and business profit have reached record high in the 1st quarter.

Revenue and profit increased YoY, due to increase in sales of overseas REP. market in North America and Europe.

Sports: Sales revenue has reached record high in the 1st quarter.

Revenue increased, but profit decreased YoY, because sales volume of golf business has increased in Japan and North America, while sales volume of tennis business has decreased in Europe.

Industrial & other: Revenue decreased, but profit increased YoY, because of increase in sales of infrastructure-relatedproducts, decrease in sales of rubber parts for office equipment, household goods and rubber parts for medical applications.

Current main initiatives

Tires business: Restructuring of management and organizational system

Establishment of the Tires Business Unit integrating manufacturing, sales, and technology by early 2024, aiming for further revenue improvement.

Structural reforms

North America business and businesses that are taking a leading approach outside of North America business will determine its direction by the end of 2024.

Laying the groundwork for growth lines of business

• ACTIVE TREAD Technology ~Rubber to fit all road~ The market release for all-season tires equipped with active treads is slated for fall 2024.

• SENSING CORE ~To detect danger in advance with sensing technology~
  Adopted by fleet operators and automakers, contributing to the field of autonomous driving

6

Consolidated Financial Results (2024 Jan.-Mar.)

		2024	2023	vs
		Jan.-Mar.	Jan.-Mar.	2023
Sales	291.4	276.8	105%
Revenue
Business	23.2	8.0	291%
Profit (%)
8.0%	2.9%
	*1,3
Operating	20.7	7.8	266%
Profit (%)	7.1%	2.8%
	*3
Profit	24.8	4.0	620%
	*2,3
*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.

Billions of Yen

2023

Actual

1,177.4

77.7

6.6%

64.5

5.5%

37.0

7

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

Billions of Yen % : Profit Ratio

: Record High

213.7

190.87.6%

16.2

15.6

7.3%

10.7

1.5%

2.8

	276.8	291.4
250.5			24.8
			23.2
			8.0%
5.9%			20.7
14.8			7.1%
5.7% 14.2	2.9%
11.8	8.0
	7.8	2.8%

2.8			4.0
1.4%
2020	2021	2022	2023	2024

(3.4)

Sales Revenue

Business Profit

Operating Profit

Profit attributable to owners of parent

8

Consolidated Sales Revenue / Business Profit by Reportable Segment

(2024 Jan.-Mar.)

		2024	2023	VS
		Jan.-Mar.	Jan.-Mar.	2023
Sales	Tires	244.1	229.8	106%
Sports	36.7	35.5	103%
Revenue
Industrial	10.6	11.5	92%
	& Other
	Total	291.4	276.8	105%

Business	Tires	18.3	1.9	945%
Sports	4.2	5.5	77%
Profit	Industrial	0.7	0.6	117%
& Other *
Total	23.2	8.0	291%

Billions of Yen

2023

Actual

1,006.4

126.6

44.4

1,177.4

63.6

12.5

1.6

77.7

*The elimination of inter-segment transactions is included. 9

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

Billions of Yen : Record High

23.2

18.3

16.2

14.8

13.1

10.5

8.0

						4.0	5.5	4.2
2.8			2.5
2.4						1.9
0.9			0.6	0.3	0.6	0.7
(0.4)
2020			2021		2022	2023	2024
		Tires			Sports		Industrial & Other			Business Profit

10