Notice Regarding the Revision (Upgrade) of the Financial Targets for the Final Year of the Medium-Term Management Plan “Yokohama Transformation 2026” (2024–2026)

Background of the Upward Revision of Financial Targets

The Yokohama Rubber Co., Ltd. has once again raised its financial targets for fiscal year 2026 under the medium-term management plan "Yokohama Transformation 2026 (YX2026)" based on recent strong progress. Key factors include the full-scale revenue contribution from the completed acquisition of The Goodyear Tire & Rubber Company's mining and construction vehicle tire business, sales volume growth of tire consumer goods and an increase in the proportion of high value-added products, expansion of market share in agricultural machinery tires within the off-highway tire segment, progress in cost reductions through technological and production reforms, and the strengthening of global production systems alongside structural reforms.

Details of Financial Target Revisions and Future Outlook

The net sales target for fiscal year 2026 has been significantly increased from the initial JPY 1.15 trillion to JPY 1.3 trillion, and operating income from JPY 130 billion to JPY 188 billion. The operating margin is also expected to improve from 11% to 14.5%. The equity ratio and ROE targets remain unchanged, maintaining financial soundness while advancing growth strategies. Through these revisions, the company aims to realize "Hockey Stick Growth," accelerating the transformation of its revenue structure and sustainable growth.