Summary Report of Consolidated Business Performance

for the First Quarter of Fiscal Year 2021 (January 1, 2021 - December 31, 2021)

HYOGO, JAPAN - May 14, 2021 - Toyo Tire Corporation ("the Company"; President & CEO: Takashi Shimizu) announces its consolidated business performance for the first quarter of fiscal year 2021 (January 1, 2021 through December 31, 2021) as follows:

Quantitative information concerning the quarterly financial results

(1) Business Results

●Net Sales:

87,744

million yen (an increase of 5,650 million yen, or

6.9% from the same period in FY2020)

●Operating Income:

12,702

million yen (an increase of 5,766 million yen, or

83.1% from the same period in FY2020)

●Ordinary Income:

16,007

million yen (an increase of 12,270 million yen, or

328.3% from the same period in FY2020)

●Profit Attributable

12,153

million yen (an increase of 10,011 million yen, or

to Owners of Parent:

467.6% from the same period in FY2020)

(2) Results by Business Unit

The Tire Business Unit posted net sales of 77,741 million yen (an increase of 5,444 million yen, or 7.5% from the same period in FY2020) and an operating income of 13,191 million yen (an increase of 5,791 million yen, or 78.3% from the same period in FY2020).

The Automotive Parts Business Unit posted net sales of 9,992 million yen (an increase of 210 million yen, or 2.1% from the same period in FY2020) and an operating loss of 479 million yen (a decrease of 4 million yen from the same period in FY2020).

  1. Status of provision of reserves for product warranties and allowance for product repairs pertaining to the Company's seismic isolation rubber issue

In the fiscal year ended December 2015, some products shipped by the Company did not conform to performance evaluation criteria certified by Japan's Ministry of Land, Infrastructure, Transport and Tourism. When applying for Ministry certification for seismic isolation rubber for construction, the certification was in some cases based on applications lacking technical grounds.

For the first quarter of FY2021, the Company posted an extraordinary loss of 299 million yen as product compensation response-measure expenses (primarily in payroll for the Seismic Isolation Rubber Task Force, etc.).

Depending on how this is handled in the following quarter and beyond, if future costs arise (mainly business compensation and repairs for damages such as delayed damages, expenses, etc. when repair work expenses are found to additionally exceed the reserve provisions), additional provision of reserves for product warranties may be posted . At the

present time, however, it is difficult to make a reasonable estimation of the corresponding amount.

(4) Explanation of financial situation

Total assets at the end of the first quarter of the consolidated accounting period were 461,364 million yen, an increase of 15,785 million yen compared to the end of the previous consolidated accounting period.

Liabilities were 219,017 million yen, a decrease of 3,867 million yen compared to the end of the previous consolidated accounting period.

Interest-bearing liabilities were 111,447 million yen, an increase of 868 million yen compared to the end of the previous consolidated accounting period.

Net assets as of the end of the first quarter of the consolidated accounting period were 242,346 million yen, an increase of 19,652 million yen compared to the end of the previous consolidated accounting period.

As a result, the capital ratio increased by 2.5 points compared to the end of the previous consolidated accounting period to 52.1%.

Revisions to the consolidated results forecasts for the first half of the fiscal year ending December 31, 2021 (January 1, 2021 to June 30, 2021)

(Millions of yen)

Operating

Profit (loss)

Net sales

Ordinary income

attributable to

income

owners of parent

Previous forecasts (A)

175,500

17,500

16,700

10,100

(announced on February 15, 2021)

Revised forecasts (B)

175,500

17,500

20,400

12,600

Change (B-A)

3,700

2,500

Percentage of change

22.2%

24.8%

Revisions to the full-year consolidated results forecasts for the fiscal year ending December 31, 2021 (January 1, 2021 to December 31, 2021)

(Millions of yen)

Operating

Profit (loss)

Net sales

Ordinary income

attributable to

income

owners of parent

Previous forecasts (A)

372,000

44,000

42,700

26,400

(announced on February 15, 2021)

Revised forecasts (B)

372,000

44,000

46,400

28,900

Change (B-A)

3,700

2,500

Percentage of change

8.7%

9.5%

Consolidated Balance Sheets

(Unit: Millions of yen)

End of previous fiscal year

End of current fiscal year

December 31, 2020

March 31, 2021

Assets

Current Assets

Cash and deposits

37,650

36,195

Notes and accounts receivable - trade

72,598

69,694

Merchandise and finished goods

40,061

46,431

Work in process

3,030

3,395

Raw materials and supplies

12,690

14,871

Other

15,050

13,542

Allowance for doubtful accounts

(343)

(361)

Total current assets

180,739

183,769

Fixed Assets

Property, plant and equipment

Buildings and structures, net

62,309

65,216

Machinery, equipment and vehicles, net

92,574

100,855

Other, net

45,823

40,372

Total property, plant and equipment

200,707

206,444

Intangible Assets

Other

4,851

5,155

Total intangible assets

4,851

5,155

Investments and other assets

Investment securities

39,986

44,699

Other

19,398

21,398

Allowance for doubtful accounts

(104)

(103)

Total investments and other assets

59,280

65,994

Total fixed assets

264,839

277,594

Total assets

445,579

461,364

Consolidated Balance Sheets

(Unit: Millions of yen)

End of previous fiscal year

End of current fiscal year

December 31, 2020

March 31, 2021

Liabilities

Current liabilities

Notes and accounts payable - trade

29,666

25,559

Commercial papers

6,000

5,000

Short-term loans payable

16,200

15,422

Accounts payable - other

21,580

17,504

Income taxes payable

1,766

4,878

Provision for product compensation

9,192

7,256

Other

24,236

25,630

Total current liabilities

108,643

101,251

Non-current liabilities

Bonds payable

10,000

Long-term loans payable

86,010

78,536

Net defined benefit liability

5,437

5,650

Provision for product compensation

9,126

9,233

Other provision

100

100

Other

13,567

14,245

Total non-current liabilities

114,242

117,766

Total liabilities

222,885

219,017

Net assets

Shareholders' equity

Common stock

55,935

55,935

Capital surplus

54,504

54,504

Retained earnings

90,866

99,170

Treasury stock

(146)

(147)

Total shareholders' equity

201,159

209,463

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

19,086

22,466

Deferred gains or losses on hedges

3

(98)

Foreign currency translation adjustments

(2,609)

5,309

Remeasurements of defined benefit plans

3,136

3,104

Total accumulated other comprehensive income

19,616

30,782

Non-controlling interests

1,918

2,101

Total net assets

222,694

242,346

Total liabilities and net assets

445,579

461,364

Consolidated Statements of Income

(Unit: Millions of yen)

Previous fiscal year

Current fiscal year

FY2020

FY2021

(From January 1, 2020

(From January 1, 2021

to M arch 31, 2020)

to M arch 31, 2021)

Net sales

82,094

87,744

Cost of sales

52,860

52,224

Gross profit

29,233

35,520

Selling, general and administrative expenses

22,297

22,817

Operating income

6,936

12,702

Non-operating income

Interest income

116

76

Dividends income

215

124

Foreign exchange gains

3,690

Equity in earnings of affiliates

68

38

Other

613

415

Total non-operating income

1,014

4,346

Non-operating expenses

Interest expenses

510

363

Foreign exchange losses

2,957

Other

745

678

Total non-operating expenses

4,213

1,041

Ordinary income

3,737

16,007

Extraordinary income

Gain on sales of investment securities

1,255

246

Total extraordinary income

1,255

246

Extraordinary loss

Loss on retirement of non-current assets

114

53

Impairment loss

68

93

Loss on product compensation

691

299

Loss on provision for product compensation

365

Total extraordinary loss

1,239

446

Profit before income taxes

3,753

15,807

Income taxes

1,709

3,525

Profit

2,043

12,281

Profit (Loss) attributable to non-controlling interests

(97)

128

Profit attributable to owners of parent

2,141

12,153

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Toyo Tire & Rubber Co. Ltd. published this content on 14 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2021 15:04:04 UTC.