Sumitomo Rubber Industries : Progress Report on Our New Mid-Term Plan
August 09, 2023 at 06:42 am EDT
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Progress Report on Our New Mid-Term Plan
For 2023 Through 2027
August 2023
Review of Our New Mid-Term Plan Overview Announced in February 2023
Focusing on "Selection & Concentration of Existing Lines of Business" and "Laying Groundwork for Growing Lines of Business" through 2025 to achieve new growth
Selection & Concentration
of Existing Lines of Business
Updating Core Systems &
Cultivating DX Talent
Business Portfolio
Optimization
Practicing DX Management for Always Agile Response to Changing Business Environment
2027
2022 2023 Target
Business
4.3％
7％
Profit Rate 2.0％
ROE 1.8% 4.1% 10%
D/E 0.7 0.6 0.6 Ratio
ROIC 1.7％ 3.7％ 6%
"Be the Change" Project to Reinforce the Foundations of Our Business
2020
2023
2027
2025 Turning Point
*As of August 2023
2
Selection &
Concentration of
Existing Lines of Business
Revamping Our Profit
Structure in North America
Progress on Our Efforts Through 2025
Living Up to
Our Philosophy
Efforts for Lines of Business Needing Structural Reforms
Efforts for our USA Factory and Business in North America
Next Evolution in Tires, Commercialization of SENSING CORE
Efforts for Sporting Goods and
Industrial Products
Promotion of ESG Management
3
A Efforts for Lines of Business Needing Structural Reforms
Currently promoting structural reforms in 6 of the around 10 businesses and product lines within the scope, and are considering the direction to take for other businesses and products.
ROIC expected to improve by up to 2.5 points.
Improvement in
Effects of
Estimated
ROIC
Invested Capital
business profit
Timeframe
(At Maximum)
improvement
6 businesses/
+2.0P
140 billion yen
+20 billion yen
2023 to 2024
product line
Other
+0.5P
40 billion yen
+3 billion yen
2024 to 2025
Total
+2.5P
180 billion yen
+23 billion yen
*Based on actual results in 2022
Invested Capital
As of 2021
As of 2025 (Estimate)
Ratio
Market Growth Rate
Businesses Growing
Needing Profit Businesses
Improvement
50% 50%
Businesses
Needing Profitable
Structural Businesses Reforms
ROIC
Market Growth Rate
Businesses Growing
Needing Profit Businesses
Improvement
30% 70%
Businesses
Needing Profitable
Structural Businesses Reforms
ROIC
4
Selection &
Concentration of
Existing Lines of Business
Revamping Our Profit
Structure in North America
Efforts for Lines of Business Needing Structural Reforms
Efforts for our USA Factory and Business in North America
Next Evolution in Tires, Commercialization of SENSING CORE
Efforts for Sporting Goods and
Industrial Products
Promotion of ESG Management
5
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Disclaimer
SRI - Sumitomo Rubber Industries Ltd. published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 10:41:10 UTC.
Sumitomo Rubber Industries, Ltd. is a Japan-based tire manufacturer. The Company operates in three business segments. The Tire segment manufactures and sells tires and tubes for automobiles, construction vehicles, industrial vehicles, race rallies and motorcycles. The Sports segment is engaged in the manufacture and sale of sports items, including golf clubs, golf balls and other golf-related supplies, and tennis-related supplies, as well as the operation of golf tournaments, golf and tennis schools and fitness center. The Industrial Products and Others segment offers vibration suppression dampers, printing blankets, medical precision rubber, slope for wheelchair, and fenders, among others.
SUMITOMO RUBBER INDUSTRIES, LTD. 
