Sumitomo Rubber Industries (5110) Investor presentation summary

Vision and strategic roadmap

• Aims to deliver new experiential value from rubber by 2035, leveraging rubber and analytical technology and unified global branding, especially DUNLOP.

• Roadmap includes strengthening DUNLOP (2025-2027), achieving new heights with an established brand (2028-2030), and building a sustainable business structure (2031-2035).

• Plans to transform the business portfolio by increasing premium tire sales to over 60% by 2030 and growing non-tire/growth businesses to 30% of profits by 2035.

• Focuses on innovation, brand management, and resilient management foundation as growth drivers.

Financial strategy and capital allocation

• Targets a business profit margin of 15%, ROE of 12%, and ROIC of 10% by 2030, revising mid-term goals upward due to early progress.

• Strategic investments prioritized for tire premiumization in the short term, growth businesses in the medium term, and continuous innovation in the long term.

• Plans cumulative investments of ¥700 billion over five years, with a focus on production optimization, digital/human resource development, and innovation.

• Expanding cash flow from reforms and premiumization will fund strategic investments and stable shareholder returns, aiming for a dividend payout ratio above 40%.

Key business strategies

• Tire business centers on DUNLOP, expanding ACTIVE TREAD technology, optimizing global production, and targeting premium market segments.

• Premium tire ratio to reach 50% by 2027 and 60% by 2030, with ACTIVE TREAD products contributing over 10% to tire business profit.

• SENSING CORE business targets autonomous driving and fleet management, aiming for over ¥10 billion profit by 2030 and expanding globally.

• Sports business seeks global top-three status in golf and tennis, expanding digital and new domain offerings.

• Industrial products business focuses on high-value solutions for healthcare, biopharma, and vibration control, addressing global social challenges.