Toyo Tire (5105) Investor presentation summary

Review of previous mid-term plan and financial performance

• Achieved financial targets through increased output, expanded sales of priority products, and new plant launches, with operating margins averaging above 16% from FY23–FY25.

• Maintained a dividend payout ratio of 30% and focused on capital efficiency, with ROE consistently above 12%.

• Prioritized high-value-added product launches and growth investments, including U.S. and Serbia plant expansions.

Market and macro trends

• Anticipates continued demand growth in the U.S. and Europe, especially for SUVs and pickup trucks.

• Faces risks from geopolitical tensions, inflation, labor shortages, and evolving environmental regulations.

• Expects gradual demand growth in Europe and Japan, with a shift toward SUVs and increased competition in technology.

Goals and strategies under the mid-term '26 plan

• Targets operating income of 120.0B yen and an operating margin of 18% or higher by FY2030.

• Focuses on reinforcing proprietary strengths, renovating U.S. plants, expanding TBR business, and enhancing the PROXES brand.

• Plans to open a Serbia R&D center, pursue data-driven management, and invest in new plant projects.

• Aims for ROE of 13% or higher and ROIC of 10% or higher, with enhanced shareholder returns including 100.0B yen in share buybacks.