The Yokohama Rubber Company (5101) Investor presentation summary

Market environment and challenges

• OHT segment market recovery remains soft, with only partial rebound in agricultural original equipment and persistent overall weakness.

• Prices for major agricultural commodities are weak, causing farmers to delay investments.

• Geopolitical and tariff uncertainties, along with high US interest rates and weak consumer sentiment, continue to impact the operating environment.

Strategic initiatives and growth drivers

• Over 600 new SKUs released in 2025, with similar plans for 2026, focusing on product and technology innovation.

• Expansion into adjacent niches like rubber tracks and leveraging multi-brand strategies across premium and value segments.

• Double-digit aftermarket growth for Mitas and addition of experienced sales leaders in the US and Europe.

• Rationalization of underperforming assets and enhancement of operational flexibility.

• Targeting ~$60M in cost and efficiency synergies in 2026 through scale and best practice sharing.

Financial performance and outlook

• OHT achieved 14% profit growth in 2025, outperforming a declining market despite M&A headwinds.

• Initiatives are expected to contribute JPY 5.4B in 2026, with business profit projected to rise 31% year-over-year.

• Business profit is expected to grow at a ~20% CAGR, reaching approximately JPY 70B by 2029, assuming market normalization.

• Growth is driven by market share gains, cost synergies, and structural reforms.