Toyo Tire : Financial Results for 1st Quarter of FY2024

Financial Results

for 1st Quarter of FY2024

May 14, 2024

1．Financial Results for 1st Quarter of FY2024

2．Financial Forecast for FY2024

3. Topics

Highlights of Financial Results

• Net sales decreased YoY primarily owing to a decline in tire unit sales.
• Operating income came in at 26.0 billion yen, a record high* for the
  first quarter, buoyed by external factors such as ocean freight cost and forex, as well as successful sales promotion of priority products.
• Ordinary income hit a record high* on a quarterly basis at 31.9
  billion yen, primarily owing to foreign exchange gains, while profit attributable to

owners of parent set a record high* for the first quarter of 23.1 billion yen.

• Earnings and dividend per share forecasts for FY2024 remain unchanged.
• • Net sales: 560 billion yen
  • Operating income: 78.0 billion yen
  • Annual dividend per share: 105 yen

* The highest figure since 2013, when the current accounting period was applied. 2/17

Financial Results for 1st Quarter of FY2024 (Jan-Mar)

（Unit: Millions of Yen）	2024	2023	Change	Change (%)
1Q Results	1Q Results
	Net Sales	127,557	129,160	(1,602)	(1.2％)

Operating Income

Margin

25,97514,574

20.4％11.3％

+11,401+78.2％

－－

Ordinary Income	31,880	15,801	+16,078	+101.8％
Profit Attributable to	23,058	10,883	+12,174	+111.9％
Owners of Parent*
*Profit attributable to parent company shareholders
1	USD	146 Yen	133 Yen	＋13	Yen
1	EUR	160 Yen	142 Yen	+18	Yen

3/17

Analysis of Operating Income for 1st Quarter of FY2024（Jan-Mar）（vs 2023）

（Unit: Billions of Yen）

Tires	Others
＋11.0	＋0.4

2022	Sales	Production	SGA	Raw	Forex	Freight	Plant	Automotive		2023
Start-up	Other
4Q	Factors	Cost	Expenses	Materials	Rate	Cost	Parts	4Q
Cost
12.7	＋2.4	＋0.4	(1.2)	＋2.0	＋1.0	＋8.1	＋0.9	＋0.4	(0.0)	26.6

4/17

Business Segments for 1st Quarter of FY2024（Jan-Mar)

（Unit: Millions of Yen）
				2023
	Net Sales	2024		Change	Change (%)
	1Q Results		1Q Results
	Tires	116,566		117,955	(1,389)	(1.2%)
	Automotive Parts	10,991		11,200	(208)	(1.9%)
	Other	0		9	(8)	ー
	Adjustments	(0)		(4)	+4	ー
	Total	127,557		129,160	(1,602)	(1.2%)
	*Net sales include intersegment internal net sales or transfers
				2023
	Operating Income	2024		Change	Change (%)
	1Q Results		1Q Results
	Tires	25,654		14,613	+11,041	+75.6%
	Margin	22.0％		12.4％	－	－
	Automotive Parts	314		(38)	+353	ー
	Margin	2.9％		(0.3％)	－	ー
	Other	5		0	＋6	ー
	Adjustments	0		0	＋0	ー
	Total	25,975		14,574	+11,401	+78.2%
	*Segment profit adjustment amounts include intersegment eliminations

5/17

Geographic Area Segments for 1st Quarter of FY2024（Jan-Mar)

（Unit: Millions of Yen）			2023
	Net Sales	2024		Change	Change (%)
	1Q Results		1Q Results
	Japan	24,853		28,368	(3,515)	(12.4%)
	N.America	85,031		81,931	+3,100	+3.8%
	Other	17,673		18,860	(1,187)	(6.3%)
	Eliminations or	ー		ー	ー	ー
	Adjustments
	Total	127,557		129,160	(1,602)	(1.2%)
	*Net sales do not include intersegment internal net sales or transfers
	Operating Income	2024		2023	Change	Change (%)
	1Q Results		1Q Results
	Japan	21,674		8,651	＋13,023	+150.5％
	N.America	4,305		4,866	(561)	(11.5%)
	Other	2,136		1,329	+807	＋60.7%
	Eliminations or
	(2,141)		(273)	(1,867)	ー
	Adjustments
	Total	25,975		14,574	+11,401	+78.2%

6/17

1．Financial Results for 1st Quarter of FY2024

2．Financial Forecast for FY2024

3. Topics

Financial Forecast for 2nd Quarter of	FY2024 (Jan-Jun)
			There is no change from February forecast
（Unit: Millions of Yen）
2024 1H		2023 1H
		Change	Change (%)
	Forecast		Results
Net Sales	270,000		265,457	＋4,542	+1.7％

Operating Income

Margin

40,00026,673

14.8%10.0％

＋13,326＋50.0％

ー－

Ordinary Income	32,000	38,761	(6,761)	(17.4％)
Profit Attributable to	21,000	29,122	(8,122)	(27.9％)
Owners of Parent*
*Profit attributable to parent company shareholders
Interim Dividends	50 Yen	20 Yen	＋30 Yen
per Share
1 USD	141 Yen	135 Yen	+6 Yen
1 EUR	153 Yen	144 Yen	+9 Yen

8/17

Financial Forecast for FY2024（Jan-Dec）

There is no change from February forecast

（Unit: Millions of Yen）	2024	2023	Change	Change (%)
Forecast	Results
	Net Sales	560,000	552,825	＋7,174	＋1.3%
	Operating	78,000	76,899	＋1,100	＋1.4％
	Income
				ー
	Margin	13.9%	13.9%	ー
	Ordinary Income	68,000	86,047	(18,047)	(21.0％)
	Profit Attributable			(27,273)
	to Owners of	45,000	72,273	(37.7％)
	Parent*
	*Profit attributable to parent company shareholders
	Annual Dividends	105 Yen	100 Yen	＋5 Yen	ー
	per Share
	1 USD	138 Yen	141 Yen	(3 Yen)
	1 EUR	149 Yen	152 Yen	(3 Yen)

2024 2H	Change
Forecast	(YoY)
290,000	+2,631
38,000	(12,225)
13.1%	－
36,000	(11,286)
24,000	(19,150)

Mid-Term '21 Plan Key Performance

Indicators

Consolidated OP	Over 14%
	margin
Dividend policy	30% or higher
（Dividend payout ratio）
	Forex Rate Sensitivity 2024
USD		0.8 Billion Yen/Year
EUR		0.1 Billion Yen/Year

Impact of 1 yen fluctuation on operating income 9/17