2025 Fiscal Year Earnings Presentation

2025 Performance Overview

Full-year 2025 revenue was 4,429.5 billion yen, flat year-over-year on a reported basis (0% increase excluding foreign exchange impacts). Adjusted operating income increased 2% YoY to 493.7 billion yen (4% increase excluding foreign exchange), delivering profit growth. Profit margin slightly improved to 11.1%. Notably, net income rose significantly by 15% YoY to 327.3 billion yen. Dividend per share was 230 yen, up 20 yen, executed as planned. The approximately 25 billion yen impact from US tariffs was minimized, while business restructuring and cost reduction initiatives advanced. Regionally, North America and Europe posted profit gains. South America maintained profitability despite challenging conditions, and Asia, Oceania, India, and China preserved a robust business foundation.

2026 Earnings Forecast and Business Plan

For full-year 2026, revenue is forecasted at 4,500 billion yen (YoY +2%), adjusted operating income at 515.0 billion yen (+4%), and net income at 340.0 billion yen (+4%). Dividends are planned to increase to 125 yen per share (pre-split equivalent 250 yen). The business strategy focuses on transitioning to a quality-driven growth phase by strengthening product offerings and brand power through new product launches, and optimizing the global portfolio. R&D expenditure is planned at 130.0 billion yen, with capital investment at 410.0 billion yen. Brand enhancement efforts, centered on motorsports activities, include being selected as the sole tire supplier for the ABB FIA Formula E World Championship to boost competitiveness.