Toyo Tire : Progress of Medium-Term Business Plan and Sustainability Management

Progress of Medium-Term

Business Plan and Sustainability

Management

February 14, 2023

1．Progress of Medium-Term Business Plan,

" Mid-Term '21 Plan (MTP) "

2．Progress of Sustainability Management

Goals under MTP

Bolstering Ability To Promptly And Flexibly Respond Through Global Collaboration

Globally unified supply-demand	Promoting sales of priority products	Efficient production made
management for lower logistic		possible by local production
costs		for local consumption

			HQ
						(NA)
Europe
						North America
		Japan
			Asia

R&D Global Tripolar System Enhancing competitive edge of differentiated products

Japan-R&D

Europe-R&D

NA-R&D

Materials

Analysis

technology

technology

Possessing all R&D functions

Developing

Developing

cutting-edge technology

products for NA

Data-driven management for optimal efficiency/profitability

VisualizationAnalysis

Products, sales

PhysicalProduction distribution

Ability to

respond to

R&D	changes Quality assurance,
environment & safety

Quality assurance by process for higher CS

Quality

Customer

satisfaction

ServiceCost

Progressive

management foundation supporting sustainable growth

Unified

management

DigitalCorporate

2/10

Progress of MTP - Key Performance Indicators

Flexibly respond to changes in the business environment and

shift to robust income growth to achieve our targets

	Actual（Operating Income, OP Margin）	60.0B yen
60.0B yen	53.1B yen	44.0B yen			14.0％				NA	49%
13.5%				〇
Consolidated			8.9%	〇			55% or over
〇		〇			Japan	65%
Operating Income
		50.0B yenBreakdown
	44.0B yen			% of sales from
14% or over	11.8％		44.5B yen	9.3%			EU	45%
				priority products
		9.8%	Tires
Consolidated				52.0			（Target in 2025)	Total	51%
OP Margin	〇Plan（Operating Income, OP Margin）		Automotive Parts
(Target in 2025)						(2.0)
	FY21		FY22	FY23		FY25
		35%			Dividend			% of NA region	41%
	30%					（Target in 2025）
					FY21
During MTP,						Payout Ratio	against total	43%
					Policy 30%+	37.8B
17%		16%			unit sales	（Result in 2022）
ROE
					Target ROE
12% or over						194.0B yen
		80			12% or over
	76									58%
							5-year total		% of NA region
Dividend Payout Ratio							FY22	（Target in 2025）
						CAPEX
						against total
						48.0B	66%
30%+									sales
										（Result in 2022）
	FY21	FY22		FY25					3/10

Progress of MTP - R&D/Sales (North America)

Develop and continuously introduce new products with uniqueness and palatability to the market

Supply products via the nationwide sales network in the U.S.

Take a firm grip on the top position

for the large-diameteroff-road tire series

						Product	Sales
						Planning
Launched in Feb '22		Launched in Nov '22	Establish presence and
	Launched in Mar '22
		supply products that capture customer needs
Enhance performance		in the North American market	R&D of EV tires for SUVs
and brand power through
	and pick-up trucks
motorsports events
	Marketing	R&D

			The 5th largest	Promote early commercialization
		Supported the overall	by expanding the application of
		champion team at the 3rd	sales share in NA*	modular design
		SCORE BAJA 400
Conduct direct marketing
to over 2 million followers

* Source: 2021 North America Sales Ranking, Rubber News 4/10