Sumitomo Rubber Industries (5110) Investor presentation summary

Mid-term plan objectives and progress

• Aims to reach a 7% business profit rate, 10% ROE, 6% ROIC, and 0.6 D/E ratio by 2027, with 2024 projections already close to targets.

• Strategic focus on expanding growth businesses and optimizing the business portfolio through selection and concentration.

• Major structural reforms and strategic investments are underway to reinforce competitiveness and agility.

Structural reforms and North America initiatives

• Structural reforms across 10 business lines are expected to improve profits by over 23 billion yen, with resources shifted to high-value medical rubber parts and SENSING CORE.

• North America business is optimizing for profitability, with strong sales growth in the WILDPEAK tire series and ongoing production improvements.

Innovation and new business development

• Launched SYNCHRO WEATHER, the first tire with Active Tread Technology, targeting the all-season tire market and receiving strong retailer response.

• Active Tread Technology will evolve with new features and expand overseas, supported by advanced material research using the NanoTerasu synchrotron.

• SENSING CORE commercialization begins in 2025, offering predictive maintenance and fleet management solutions, with expansion planned for Japan and Europe.