FY2025 December Financial Summary [IFRS] (Consolidated)

Overview of Performance

For the fiscal year ending December 2025, despite impacts from additional US tariffs and economic slowdown, sales revenue remained nearly flat at JPY 4,429.5 billion, supported by steady sales of premium passenger tires and large mining tires. Adjusted operating income rose 2% YoY to JPY 493.7 billion, securing profit growth; however, operating income declined 14% YoY to JPY 381.2 billion due to expenses related to business restructuring. Net income attributable to owners of parent increased 15% YoY to JPY 327.3 billion, reflecting income tax refunds among other factors.

Segment Performance

The Japanese market showed steady performance with revenue of JPY 1,265.9 billion (up 3% YoY) and adjusted operating income of JPY 198.1 billion (up 6% YoY). Asia, Oceania, India, and China segment revenue declined 2% YoY to JPY 517.8 billion; however, adjusted operating income improved 2% YoY to JPY 59.6 billion. The Americas recorded revenue of JPY 2,130.5 billion (down 2% YoY) but saw adjusted operating income rise 12% YoY to JPY 201.5 billion. Europe, Middle East, and Africa achieved significant profit growth with revenue up 2% YoY to JPY 852.9 billion and adjusted operating income up 42% YoY to JPY 42.4 billion.

Financial Condition and Cash Flows

Total assets increased 0.4% from the previous term to JPY 5,747.7 billion, with equity attributable to owners of parent at 63.7%, down 1.5 percentage points. Cash flow from operating activities increased by JPY 111.6 billion YoY to JPY 660.4 billion, while cash outflows for investing activities decreased to JPY 225.0 billion. Financing activities outflows were JPY 429.9 billion, mainly including JPY 300.0 billion for share buybacks and JPY 148.6 billion for dividend payments.

Dividends and Stock Split

For FY2025, the annual dividend was increased to JPY 230 per share (interim dividend of JPY 115 and year-end dividend of JPY 115). For FY2026, an annual dividend of JPY 125 per share (interim JPY 60, year-end JPY 65) is planned. On January 1, 2026, a 2-for-1 stock split was implemented, resulting in approximately 1.43 billion shares outstanding.

Treasury Stock Acquisition, Cancellation and Bond Issuance

On January 23, 2026, cancellation of 93,359,400 treasury shares was completed. On February 16, 2026, the Board of Directors approved acquisition of up to 60 million shares of treasury stock, with a total acquisition cost not exceeding JPY 150 billion. The acquisition period is from February 17 to August 31, 2026. Additionally, issuance of unsecured domestic straight bonds up to JPY 150 billion was decided on the same day, with proceeds intended for investment funds, capital expenditures, and treasury stock acquisition.

Executive Personnel Changes

At the upcoming Annual Shareholders’ Meeting scheduled on March 24, 2026, reappointment of Global CEO Yasuhiko Morita and several new appointments, resignations, and reappointments of directors are planned. Multiple outside director candidates will also be appointed to strengthen governance.

Earnings Forecast for FY2026

For the fiscal year ending December 2026, consolidated revenue is expected to be JPY 4,500 billion (up 1.6% YoY), adjusted operating income JPY 515 billion (up 4.3% YoY), and net income attributable to owners of parent JPY 340 billion (up 3.9% YoY). Exchange rates are assumed at JPY 150 per USD and JPY 176 per EUR.