Sumitomo Rubber Industries : Introducing Our New Mid-Term Plan

Introducing Our New Mid-Term Plan

For 2023 Through 2027

Mid-Term Plan Overview

Through 2025

Moving Ahead with Improvements (to Organizational Framework, etc.) as Part of Ongoing Activities to Reinforce the Foundations of Our Business

Completing Updates to Core Systems for DX Management by 2025

Focusing on "Selection & Concentration of Existing Lines of Business" + "Laying Groundwork for Growing Lines of Business"

From 2026 Onward

New Growth Period with "Business Portfolio Optimization" & "Expanding Growing Lines of Business"

Selection & Concentration

of Existing Lines of Business

Updating Core Systems &

Cultivating DX Talent

Business Portfolio

Optimization

Practicing DX Management for Always Agile Response to Changing Business Environment

"Be the Change" Project to Reinforce the Foundations of Our Business

2020 202320252027 Turning Point

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Review of Past Efforts

Efforts Through 2025

Living Up to Our Philosophy

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Past Performance Trends

We have invested heavily in expanding our manufacturing and sales bases with the aim of establishing a Global Business Framework. However, these investments have yet to produce commensurate returns, resulting in a steady decline in our overall profitability, which has been further compounded by recent unforeseen changes in the business environment.

Trends in Sales Revenues & Business Profit※ (Unit: 100M JPY)

Sales Revenues											売上収益		事業利益		Profit Rate	Business Profit
												Sales				Business
14,000						9.9%						Revenues			Profit			12,000		1,000
12,000																		10,987
					749																	800
10,000
8,000						7,567															2.9%			600
6,000	5,092																		2.0%
																		350			400
																			220
4,000
2,000	238																							200
0	4.7%																							0
1999	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
	Formation of		Acquisition of	Dissolution of					Acquisition of						(Estimate)
	Alliance with		Factory in	Alliance with		Micheldever Group				Russian Invasion of Ukraine,
	Goodyear		South Africa	Goodyear						in UK								Global Inflation
				Start of	Acquisition of Factory in USA					Soaring Prices
			Operations at
			Factory in Brazil														for Materials &
			Start of		Acquisition of Lonstroff								Freight Shipping
					AG in Switzerland
		Operations at									Market Disruption Due
		Factory in		Start of Operations at							to Onset of COVID-19
※(~2014) Japanese Accounting Standards	Hunan, China									Pandemic
				Factory in Turkey															4
(2015~) IFRS

Past Performance Trends (by Business Segment)

The declining Business Profit generated by our Tire Business stands in stark contrast to our Sales Revenues, which have increased across the board.

Sales Revenues	Business Profit	Overall Situation & Challenges
(100M JPY)	(100M JPY)

Tire

Business

	9,399
6,484
2016	2022

679	•
	123
2016	2022

Steady Increase in Sales Revenues in Keeping with Expansion of Global Business Framework

• Challenges: Declining
  Business Profit/Profitability

Sports

Business

	1,166
728
2016	2022

43 89

2016 2022

• Steady Growth in Keeping with
  Global Business Expansion

Industrial

Products

Business

355	421
2016	2022

					• Many Relatively Small Lines of Business
					with Varying Levels of Profitability
	27		7		• Challenge: Overhauling Unprofitable
			Lines of Business
	2016	2022

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