Sumitomo Rubber Industries : 2Q Topics (January 1 - June 30, 2022)(PDF 1,091.0KB)

Topics

Addressing the Negative Factors at Hand Reinforcing Our Business Foundations & Devising a New Mid-term Plan

Measures to Further Improve Profits Toward Reinforcing Our Business Foundations

Efforts in Each Business Division Promoting ESG Management

Addressing the Negative Factors at Hand

Coping with

Rising Costs for Freight Shipping

Coping with

Rising Costs for

Raw Materials

Optimizing

Production

Allocation

While uncertainty remains, we expect freight shipping costs to peak in the near future.

In light of this outlook, we will work to rein in costs for shipments to North America and Europe (where the impact is greatest) through a meticulous approach that carefully considers sales projections and inventory levels in those regions.

Revising prices according to market conditions in each region

Comprehensive efforts to reduce raw material costs through cooperation across production, R&D, purchasing & sales

Pruning unprofitable SKU to improve profit rate & productivity

Steadily increasing production capacity to promote higher rates of local production for local consumption (USA, Brazil, South Africa)

Increasing capacity to produce more advanced tires (Turkey, China, Thailand, Miyazaki)

Flexible production allocation to respond to changes in the business environment (Demand, FOREX, etc.)

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Reinforcing Our Business Foundations & Devising a New Mid-term Plan

Groupwide Project to Reinforce the

Foundations of Our Business

Pushing Ahead with Groupwide "Be the Change" Project Activities to "Reinforce Our Foundation for Profitability" & "Improve Our Organizational Framework"

Devising a New Mid-term Plan

(To Be Completed & Announced by the End of 2022)

With an Eye on Our Efforts to Date, Renewed Efforts

Toward "Tackling Groupwide Issues,"

"Our Ideal Future State"

Objective

Reinforcing

Profitability

Foundation

Improving

Organizational

Framework

Specific Outcomes

Improving Working Capital

Enhancing Cost Improvement

Capabilities (Reducing First Costs,

Augmenting Purchasing Power)

Instilling Our Philosophy

Systems to Encourage Challenges, Changing Employee Awareness

• "The Challenges of New Territories"
• Redefining Our Ideal State
• Portfolio Management Optimized Resource Allocation

• Identifying Focal Areas (Lines of Business, Regions)

Tackling Groupwide Issues

Our Ideal Future State

The Challenges of New Territories

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Measures to Further Improve Profits Toward Reinforcing Our Business Foundations

Revamping Our Foundation for Profitability

Optimizing Tire SKU

Reducing Unprofitable SKU

Narrowing SKU When Developing New Products

Pruning Unprofitable SKU to

Improve Profit Rate &

Productivity

Increasing Sales of Advanced Products

Upgrading Equipment

Capacity

Increasing Production of

Larger PCR Tire Sizes for

EV at Our Factory in Turkey

Increasing Production of

Larger PCR Tire Sizes for

EV at Our Factories in China

Promoting Digital

Transformation (DX)

Utilizing AI for Sales, Planning, Development &

Safety

Developing Human

Resources with DX

Introducing ERP to Upgrade Legacy Systems

Introducing RPA

Prototype EV Tire for the European Market:

e.ZIEX

(Unveiled in May at The Tire Cologne 2022)

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Efforts in Each Business Division

Tire Business

e.SPORT MAXX Tires for EV Adopted as OE

Tires for 9 Models Made by Chinese EV

Manufacturers

Thanks to Use of Hydrogenated Polymer, "Performance Sustaining Technology" Named "Tire Technology of the Year"

Sports Business

Both in Japan & Overseas: Strong Sales of Golf Gear Led by New

"XXIO 12" + Strong Sales of Tennis Gear Led by Tennis Balls

Double-Digit Increase in Year-on-Year Sales

SENSING CORE

"SENSING CORE Technology Future Concept Press

Event" Held in April 2022

Accelerating Efforts to Achieve Broad Practical

Applications on a Global Scale	SENSING CORE Detecting Road Conditions in an Actual Vehicle

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