Posted first-half record highs in all key earnings categories, from sales revenue to net profit

In the first-half of FY2026, the Yokohama Rubber Group achieved record highs in all core earnings categories. Sales revenue expanded 10.4% year on year to ¥639.4 billion, business profit increased 54.3% to ¥95.8 billion, operating profit expanded 100.0% to ¥109.7 billion, and profit attributable to owners of the parent was ¥72.6 billion, a year-on-year increase of 104.2%. Based on the strong first-half results, we have upwardly revised our full-year forecasts for FY2026. We now forecast sales revenue of ¥1,320.0 billion (up ¥20.0 billion from the previous forecast), business profit of ¥192.5 billion (up ¥4.5 billion), operating profit of ¥199.5 billion (up ¥8.0 billion), and profit attributable to owners of parent of ¥117.0 billion (up ¥8.0 billion). The revised forecasts are the third upward revision to our financial targets for FY2026, the final year of our medium-term management plan Yokohama Transformation 2026 (YX2026), and we now expect to achieve a sixth straight year of record highs from sales revenue to operating profit . Based on this upward revision of our earnings forecast and our commitment to deliver a dividend payout ratio of 30%, we have raised our interim dividend from the initial plan of ¥62 per share to ¥87 per share and our planned annual per-share dividend from ¥172 to ¥223, which will be the sixth consecutive increase in our annual dividend.

Next medium-term management plan aims to accelerate “Hockey Stick Growth”

FY2026 is the final year of our current medium-term plan YX2026, and in FY2027 we will launch a new medium-term management plan, YX2029. During the three years of YX2029, we aim to accelerate the "Hockey Stick Growth" targeted in YX2023 and YX2026 and maintain our sales and profit growth momentum. With the competitive environment in our industry continuing to change dynamically, we will continue to implement our "Best Alternative" strategy for consumer tires and seek to raise the sales ratio of our higher-value-added ADVAN, GEOLANDAR, and winter (AGW) tires to 50% by FY2029. Meanwhile, we will raise the cost-competitiveness of our YOKOHAMA brand standard tires by implementing our “Low-Cost Conversion (LCC)” strategy, which is shifting production from existing plants to low-cost plants. This LCC strategy is centered on two new plants—one in Hangzhou, China, which has already started producing tires, and the other in Mexico, which we expect will start production in January 2027. In addition, our OHT business is projected to achieve a profit of ¥41.9 billion this year and then aim for ¥70 billion in FY2029. We expect this profit growth will be fueled by improvements at Y-ATG and Y-TWS as well as G-OTR. In addition to transferring production of tires currently supplied by Goodyear to low-cost plants, OHT profit growth will be achieved by investing to improve MIX and production volume of 49-inch and larger tires. While we will continue to make investments deemed necessary to support future growth, a pause in large-scale growth investments and the completion this year of the repayment of borrowings used to fund our acquisition of Y-ATG will enable us to further increase our returns to shareholders. We aim to increase our dividend payout ratio to 40% and provide shareholders with a total return ratio of over 40% by FY2029. Details of our YX2029 medium-term management plan will be announced in February 2027, and we look forward to continued support from all of our shareholders.

September 2026