Sumitomo Rubber Industries : Consolidated Financial Results for the Six Months Ended June 30, 2022(PDF 268.28KB)

Consolidated Financial Results

for the Six Months Ended June 30, 2022

[IFRS]

: Sumitomo Rubber Industries, Ltd.

: Tokyo Stock Exchange

: 5110

: https://www.srigroup.co.jp/

: Satoru Yamamoto, President and CEO, Representative Director

: Shinji Araki, General Manager, Accounting & Finance Department

: [phone]

Company name Stock exchange listing Code number

URL Representative Contact Phone

Scheduled date of filing quarterly securities report Scheduled date of commencing dividend payments Supplementary documents for quarterly financial results Quarterly financial results briefing session

August 8, 2022

• August 9, 2022
• September 6, 2022
• Yes
• Yes (for institutional investors and analysts)

(Amounts of less than one million yen are rounded to the nearest unit.)

1. Consolidated Financial Results for the Six Months Ended June 30, 2022 (January 1, 2022 to June 30, 2022)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
							Profit attributable	Comprehensive
	Sales revenue	Business profit	Operating profit	to owners
	income
							of parent
Six months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen		%
June 30, 2022	512,112	16.4	14,184	(52.9)	12,572	(56.0)	17,187		(16.2)	80,508		83.6
June 30, 2021	440,082	29.4	30,088	-	28,576	-	20,501		-	43,850		-

(Note) "Business profit" is "Sales revenue" subtracted by "Cost of sales" and "Selling, general and administrative

expenses."
	Basic profit per	Diluted profit	Business profit
	to sales revenue
	share	per share
	ratio
Six months ended	Yen	Yen	%
June 30, 2022	65.35	-	2.8
June 30, 2021	77.95	-	6.8
(2) Consolidated Financial Position
			Total equity	Ratio of equity	Equity attributable
	Total assets	Total equity	attributable to	attributable to	to owners of
			owners of parent	owners of parent	parent per share
As of	Millions of yen	Millions of yen	Millions of yen	%	Yen
June 30, 2022	1,244,142	594,783	578,501	46.5	2,199.55
December 31, 2021	1,086,169	513,543	501,540	46.2	1,907.03

(3) Consolidated Cash Flows

	Cash flows from		Cash flows from		Cash flows from			Cash and cash
				equivalents at the
	operating activities		investing activities		financing activities
					end of period
Six months ended	Millions of yen		Millions of yen			Millions of yen			Millions of yen
June 30, 2022	(110)			(35,217)			41,945			93,310
June 30, 2021	39,918			(26,448)			(11,198)			79,334
2. Dividends
					Annual dividends
	1st			2nd	3rd		Year-end	Total
	quarter-end		quarter-end	quarter-end
Fiscal year ended	Yen			Yen			Yen			Yen	Yen
December 31, 2021	-		25.00			-		30.00	55.00
December 31, 2022	-		20.00
Fiscal year ending
December 31, 2022							-		25.00	45.00
(Forecast)

(Note) Revision to the dividends forecast announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 to December 31, 2022)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic profit per
	Sales revenue	Business profit	Operating profit	to owners
	share
							of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	1,145,000	22.3	31,000	(40.4)	28,000	(43.1)	24,500	(16.9)	93.15

(Note) Revision to the financial results forecast announced most recently: Yes

Notes:
(1)	Changes in significant subsidiaries during the six months ended June 30, 2022
	(changes in specified subsidiaries resulting in changes in scope of consolidation)	: None
(2)	Changes in accounting policies and changes in accounting estimates
	1)	Changes in accounting policies required by IFRS	: None
	2)	Changes in accounting policies other than 1)	: None
	3)	Changes in accounting estimates	: None

1. Total number of issued shares (common stock)
   1) Total number of issued shares at the end of the period (including treasury stock)

	June 30, 2022	:	263,043,057 shares
	December 31, 2021	:	263,043,057 shares
2)	Total number of treasury stock at the end of the period
	June 30, 2022	:	33,734 shares
	December 31, 2021	:	47,064 shares
3)	Average number of shares during the period

Six months ended June 30, 2022 Six months ended June 30, 2021

• 263,001,225 shares
• 262,999,698 shares

• Quarterly financial statements are outside the scope of the quarterly review procedures to be conducted by certified public accountants or auditing firms.
• Explanation of the proper use of financial results forecast and other notes

The earnings projections and other forward-looking statements herein are based on certain assumptions made in light of the information currently available to Sumitomo Rubber Industries, Ltd. (the "Company") and its group companies (collectively, the "Group") and do not constitute any promises by the Company that they will be realized. Actual results could differ significantly from these forecasts due to changes in various factors surrounding the businesses of the Company and the Group.

With regard to the matters related to the underlying assumptions for the above forecasts, please refer to page 4 of the attached documents of the Consolidated Financial Results for the Period under Review, "1. Qualitative Information on Interim Financial Results for the Period under Review, (3) Consolidated Financial Results Forecast and Other Future Forecast."

Table of Contents
1. Qualitative Information on Interim Financial Results for the Period under Review ..............................................	2
(1) Operating Results ................................................................................................................................................	2
(2) Financial Position ................................................................................................................................................	4
(3) Consolidated Financial Results Forecast and Other Future Forecast ..................................................................	4
2. Condensed Interim Consolidated Financial Statements and Primary Notes ...........................................................	6
(1) Condensed Interim Consolidated Statement of Financial Position .....................................................................	6
(2) Condensed Interim Consolidated Statements of Income and Comprehensive Income .......................................	8
(3) Condensed Interim Consolidated Statements of Changes in Equity .................................................................	10
(4) Condensed Interim Consolidated Statements of Cash Flows ............................................................................	12
(5) Notes on Condensed Interim Consolidated Financial Statements .....................................................................	13
(Notes on Going Concern Assumption) .............................................................................................................	13
(Significant Accounting Policies) ......................................................................................................................	13
(Segment Information) .......................................................................................................................................	14
(Significant Subsequent Events) ........................................................................................................................	16

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1. Qualitative Information on Interim Financial Results for the Period under Review

(1) Operating Results

		For the six	For the six	Change in
		months ended	months ended
		ratio
		June 30, 2021	June 30, 2022
		Millions of yen	Millions of yen	%
Sales revenue	440,082	512,112	16.4
	Tires	369,289	430,853	16.7
	Sports	51,439	61,533	19.6
	Industrial and Other Products	19,354	19,726	1.9
Business profit	30,088	14,184	(52.9)
	Tires	23,477	7,659	(67.4)
	Sports	5,518	6,210	12.5
	Industrial and Other Products	1,069	291	(72.7)
	Adjustments	24	24	-
Operating profit	28,576	12,572	(56.0)
Profit attributable to owners	20,501	17,187	(16.2)
of profit

(Note) "Business profit" is "Sales revenue" subtracted by "Cost of sales" and "Selling, general and administrative expenses."

Foreign exchange rates applied

	For the six	For the six	Increase
	months ended	months ended
	(Decrease)
	June 30, 2021	June 30, 2022
	Yen	Yen	Yen
Yen / U.S. Dollar	108	123	15
Yen / Euro	130	134	4

During the six months ended June 30, 2022, the economic environment saw the effects of the situation in Ukraine and COVID-19, in addition along with growing inflationary pressures and restrictions on economic activities in China and remained highly uncertain.

In the business environment surrounding the Group, in addition to the impact of a decline in automotive production volume due to the shortage of semiconductors, the impact of soaring freight costs and the rising prices of raw materials continued.

Under these circumstances, the Group strongly promoted company-wide projects that aim to reinforce our business foundation with the goal of accomplishing the Mid-Term Plan, which sets 2025 as the target year. At the same time, we worked to strengthen our competitive advantage in a global structure through such efforts as developing advanced products that meet the needs of customers and raising their brand value with the aim of maximizing the effects of the manufacturing and sales bases we have established in major markets around the world.

As a result, sales revenue of the Group increased 16.4% from the same period of the previous fiscal year to ¥512,112 million, business profit decreased 52.9% to ¥14,184 million, operating profit decreased 56.0% to ¥12,572 million and profit attributable to owners of parent decreased 16.2% to ¥17,187 million.

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