Sumitomo Rubber Industries : ● Fact book 2022

SRI FACTBOOK 2022

Consolidated Financial Statements

(1) Consolidated Financial Statements

(i) Consolidated Statement of Financial Position

Millions of yen

Note

As of Dec. 31, 2021

As of Dec. 31, 2022

Liabilities and Equity

Liabilities

Current liabilities

Bonds and loans payable

		Millions of yen
Note	As of Dec. 31, 2021	As of Dec. 31, 2022

15, 19

¥68,143

¥100,895

Assets

Current assets

Cash and cash equivalents

Trade and other receivables

Other financial assets

Inventories

Other current assets

Total current assets

Non-current assets

Property, plant and equipment Goodwill

Intangible assets

Investments accounted for using equity method Other financial assets

Net defined benefit assets Deferred tax assets Other non-current assets Total non-current assets

Total assets

6, 19	¥75,093	¥73,846
7, 19	197,320	209,009
19	2,096	6,950
8	218,019	283,501
	40,553	50,593
	533,081	623,899
9, 11	389,795	436,307
10, 11	26,287	26,412
10, 11	42,794	45,919
13	4,430	4,462
19	36,889	34,303
17	41,458	38,899
18	10,641	12,953
	794	2,048
	553,088	601,303
	¥1,086,169	¥1,225,202

Trade and other payables

Other financial liabilities

Income tax payable

Provisions

Other current liabilities

Total current liabilities

Non-current liabilities

Bonds and loans payable

Other financial liabilities

Net defined benefit liabilities

Provisions

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities

Total liabilities

Equity

Capital stock

Capital surplus

Retained earnings

Treasury stock

Other components of equity

Total equity attributable to owners of the parent Non-controlling interests

Total equity

Total liabilities and equity

14, 19	160,902	176,151
12, 19	12,100	14,431
	6,301	7,980
16	1,604	1,299
	47,535	52,152
	296,585	352,908
15, 19	170,502	210,907
12, 19	46,919	48,191
17	23,417	21,333
16	1,818	1,654
18	12,093	4,690
	21,292	21,656
	276,041	308,431
	572,626	661,339
20	42,658	42,658
20	39,715	39,705
20	481,455	478,379
20	(85)	(61)
20	(62,203)	(14,481)
	501,540	546,200
29	12,003	17,663
	513,543	563,863
	¥1,086,169	¥1,225,202

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SRI FACTBOOK 2022

(ii) Consolidated Statement of Income

Sales revenue

Cost of sales

Gross profit

Selling, general and administrative expenses

Business profit

Other income Other expenses Operating profit Financial income Financial expenses

Share of (profit) loss of entities accounted for using equity method Profit before tax

Income tax expenses

Profit for the year

Profit attributable to:

Owners of the parent company

Non-controlling interests

Profit for the year

Earnings per share

Basic earnings per share (yen)

		Millions of yen
Note	Jan. 1 to Dec. 31, 2021	Jan. 1 to Dec. 31, 2022
5, 22	¥936,039	¥1,098,664
	(676,341)	(845,442)
	259,698	253,222
23	(207,723)	(231,259)
	51,975	21,963
24	2,668	3,093
11, 24	(5,474)	(10,068)
	49,169	14,988
25	1,797	11,519
25	(6,289)	(4,041)
13	88	73
	44,765	22,539
18	(14,779)	(10,083)
	¥29,986	¥12,456
	29,470	9,415
29	516	3,041
	¥29,986	¥12,456
26	¥112.05	¥35.80

(iii) Consolidated Statement of Comprehensive Income

			Millions of yen
	Note	Jan. 1 to Dec. 31, 2021	Jan. 1 to Dec. 31, 2022
Profit for the year		¥29,986	¥12,456
Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through other comprehensive income	21	1,857	(1,239)
Remeasurements of defined benefit plan	21	5,925	(1,253)
Items that may be reclassified subsequently to profit or loss
Cash flow hedges	21	115	154
Currency translation differences of foreign operations	21	25,103	44,836
Other comprehensive income, net of tax		33,000	42,498
Total comprehensive income for the year		¥62,986	¥54,954
Total comprehensive income for the year attributable to:
Owners of the parent company		62,356	49,752
Non-controlling interests	29	630	5,202
Total comprehensive income for the year		¥62,986	¥54,954

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SRI FACTBOOK 2022

(iv) Consolidated Statement of Changes in Equity

January 1 to December 31, 2021							Millions of yen
			Equity attributable to owners of the parent company
						Other components of equity
						Currency
						translation
						differences of	Cash flow
	Note	Capital stock	Capital surplus	Retained earnings	Treasury stock	foreign operations	hedges
Balance as of January 1, 2021		¥42,658	¥39,486	¥461,720	¥(77)	¥(99,270)	¥(241)
Profit for the year				29,470
Other comprehensive income	21					25,032	115
Total comprehensive income		-	-	29,470	-	25,032	115
Purchase of treasury stock	20				(8)
Disposal of treasury stock	20		(0)		0
Dividends	28			(15,780)
Increase (decrease) attributable to
capital increase undertaken by
consolidated subsidiaries
Changes in ownership interests in			229
subsidiaries without a loss of control
Share-based payment transactions	34
Transfer to retained earnings				6,045
Transfer to capital surplus			0	(0)
Other
Total transactions with owners		-	229	(9,735)	(8)	-	-
Balance as of December 31, 2021		¥42,658	¥39,715	¥481,455	¥(85)	¥(74,238)	¥(126)
		Equity attributable to owners of the parent company
		Other components of equity
		Financial assets
		measured at fair
		value through
		other	Remeasurements
		comprehensive	of defined benefit			Non-controlling
	Note	income	plan	Total	Total	interests	Total equity
Balance as of January 1, 2021		¥10,467	¥-	¥(89,044)	¥454,743	¥12,354	¥467,097
Profit for the year				-	29,470	516	29,986
Other comprehensive income	21	1,849	5,890	32,886	32,886	114	33,000
Total comprehensive income		1,849	5,890	32,886	62,356	630	62,986
Purchase of treasury stock	20			-	(8)		(8)
Disposal of treasury stock	20			-	0		0
Dividends	28			-	(15,780)	(1,801)	(17,581)
Increase (decrease) attributable to
capital increase undertaken by				-	-	1,325	1,325
consolidated subsidiaries
Changes in ownership interests in				-	229	(505)	(276)
subsidiaries without a loss of control
Share-based payment transactions	34
Transfer to retained earnings		(155)	(5,890)	(6,045)	-		-
Transfer to capital surplus				-	-		-
Other
Total transactions with owners		(155)	(5,890)	(6,045)	(15,559)	(981)	(16,540)
Balance as of December 31, 2021		¥12,161	¥-	¥(62,203)	¥501,540	¥12,003	¥513,543

January 1 to December 31, 2022

Balance as of January 1, 2022

Hyperinflation adjustment Restated balance Profit for the year

Other comprehensive income Total comprehensive income

Purchase of treasury stock Disposal of treasury stock Dividends

Increase (decrease) attributable to capital increase undertaken by consolidated subsidiaries Changes in ownership interests in subsidiaries without a loss of control

Share-based payment transactions

Transfer to retained earnings

Transfer to capital surplus

Other

Total transactions with owners

Balance as of December 31, 2022

Balance as of January 1, 2022

Hyperinflation adjustment

Restated balance

Profit for the year

Other comprehensive income

Total comprehensive income

Purchase of treasury stock

Disposal of treasury stock

Dividends

Increase (decrease) attributable to capital increase undertaken by consolidated subsidiaries Changes in ownership interests in subsidiaries without a loss of control

Share-based payment transactions

Transfer to retained earnings

Transfer to capital surplus

Other

Total transactions with owners

Balance as of December 31, 2022

						Millions of yen
		Equity attributable to owners of the parent company
					Other components of equity
					Currency
					translation
					differences of	Cash flow
Note	Capital stock	Capital surplus	Retained earnings	Treasury stock	foreign operations	hedges
	¥42,658	¥39,715	¥481,455	¥(85)	¥(74,238)	¥(126)
33			1,811		6,328
	42,658	39,715	483,266	(85)	(67,910)	(126)
			9,415
21					42,766	153
	-	-	9,415	-	42,766	153
20				(3)
20		(0)		0
28			(13,150)
34		(10)		27
			(1,057)
		10	(10)
		(10)	(85)
	-	(10)	(14,302)	24	-	-
	¥42,658	¥39,705	¥478,379	¥(61)	¥(25,144)	27
	Equity attributable to owners of the parent company
	Other components of equity
	Financial assets
	measured at fair
	value through
	other	Remeasurements
	comprehensive	of defined benefit			Non-controlling
Note	income	plan	Total	Total	interests	Total equity
	¥12,161	¥-	¥(62,203)	¥501,540	¥12,003	¥513,543
33			6,328	8,139	2,035	10,174
	12,161	-	(55,875)	509,679	14,038	523,717
			-	9,415	3,041	12,456
21	(1,240)	(1,342)	40,337	40,337	2,161	42,498
	(1,240)	(1,342)	40,337	49,752	5,202	54,954
20			-	(3)		(3)
20			-	0		0
28			-	(13,150)	(1,577)	(14,727)
			-	-		-
			-	-		-
34			-	17		17
	(285)	1,342	1,057	-		-
			-	-		-
			-	(95)		(95)
	(285)	1,342	1,057	(13,231)	(1,577)	(14,808)
	¥10,636	¥-	¥(14,481)	¥546,200	¥17,663	¥563,863

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SRI FACTBOOK 2022

(v) Consolidated Statement of Cash Flows

			Millions of yen
	Note	Jan. 1 to Dec. 31, 2021	Jan. 1 to Dec. 31, 2022
Cash flows from operating activities
Profit before tax		¥44,765	¥22,539
Depreciation and amortization		67,724	75,348
Impairment loss	11	139	4,137
Interest and dividend income		(1,683)	(2,907)
Interest expenses		2,797	3,637
Share of (profit) loss of entities accounted for using equity method		(88)	(73)
Loss (gain) on sales and retirement of non-current assets		1,489	1,714
Decrease (increase) in inventories		(61,734)	(51,758)
Decrease (increase) in trade and other receivables		(10,882)	(875)
Increase (decrease) in trade and other payables		33,121	10,205
Other, net		4,987	(16,955)
Subtotal		80,635	45,012
Interest received		963	1,944
Dividend income received		711	850
Interest expense paid		(2,461)	(3,454)
Income taxes paid		(16,758)	(16,483)
Net cash provided by (used in) operating activities		63,090	27,869
Cash flows from investing activities
Purchase of property, plant and equipment		(47,726)	(67,324)
Proceeds from sales of property, plant and equipment		1,068	555
Purchase of intangible assets		(5,273)	(7,591)
Purchase of investment securities		(188)	(245)
Proceeds from sales of investment securities		19	483
Payment for transfer of business		(1,048)	(2,330)
Net decrease (increase) in short-term loans receivable		33	10
Other, net		(908)	(2,255)
Net cash provided by (used in) investing activities		(54,023)	(78,697)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable	27	20,901	17,584
Proceeds from long-term debt and newly issued bonds	27	37,002	75,234
Repayments of long-term debt and redemption of bonds	27	(41,048)	(23,096)
Repayments of lease liabilities	27	(13,382)	(13,438)
Proceeds from contributions of non-controlling interests		1,325	―
Purchase of shares of non-controlling interests		(545)	―
Cash dividends paid	28	(15,776)	(13,148)
Cash dividends paid to non-controlling interests		(1,801)	(1,577)
Other, net		(8)	(3)
Net cash provided by (used in) financing activities		(13,332)	41,556
Effect of exchange rate changes on cash and cash equivalents		5,155	8,025
Net increase (decrease) in cash and cash equivalents		890	(1,247)
Cash and cash equivalents at the beginning of current period	6	74,203	75,093
Cash and cash equivalents at the end of current period	6	¥75,093	¥73,846

Notes to Consolidated Financial Statements

1. Reporting Company

Sumitomo Rubber Industries, Ltd. (hereinafter the "Company") is based in Japan. The consolidated financial statements presented herein comprise the operating results for the fiscal year ended December 31, 2022 recorded by the Sumitomo Rubber Group and the Company's affiliates. For a description of the Group's primary business activities, please refer to Note 5. "Segment Information."

2. Basis for Preparation

(1) Compliance with IFRS

In accordance with Article 93 of the Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements (Ordinance of the Ministry of Finance No. 28 in 1976), the Group's consolidated financial statements have been prepared in conformity with International Financial Reporting Standards (IFRS), as the Company meets the requirements concerning a "Designated International Accounting Standards Specified Company" prescribed in Article 1-2.

The consolidated financial statements presented herein were approved by Satoru Yamamoto, Representative Director and President of the Company, on March 28, 2023.

(2) Basis for Measurements

As stated in Note 3. "Significant Accounting Policies," the consolidated financial statements have been prepared based on historical cost, except for specific financial instruments that are measured at fair value and financial statements prepared by a subsidiary in Turkey and consolidated via the adoption of hyperinflationary economy accounting.

(3) Presentation Currency and Unit

The Company uses Japanese yen as the primary functional currency for its operations and as the presentation currency used in preparing its consolidated financial statements. Figures are rounded to the nearest million yen.

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