Upward revisions to FY2025 full-year forecast
Record-high first-half sales revenue and business profit

The Yokohama Rubber Group’s operating environment in the first-half of fiscal 2025 was characterized by increasing uncertainties owing to U.S. tariff policies and other factors. However, consumer spending in Japan picked up moderately, and business sentiment among Japanese manufacturers was resilient overall. In overseas markets, the business environment in the United States deteriorated amid rising uncertainties and inflation expectations caused by the U.S tariff rate hikes. In Europe, business sentiment was boosted by the increase in exports generated by last-minute demand before tariff hikes took effect, and economic conditions in China improved after the additional tariff rate on its imports to the United States were reduced. In this operating environment, the Yokohama Rubber Group’s sales revenue expanded 10.3% year on year to ¥579.2 billion and business profit increased 13.8% to ¥62.1 billion, both figures are record highs for the first half of a fiscal year. However, operating profit was ¥54.9 billion, 2.5% less than a year earlier, and profit attributable to owners of the parent was ¥35.5 billion, down 23.7%.Considering our first-half results, we have upwardly revised the full-year fiscal 2025 forecasts we announced in February. We now forecast sales revenue of ¥1,235.0 billion, business profit of \153.0 billion, operating profit of \140.5 billion, and profit attributable to owners of parent of \88.0 billion. We previously announced our plan to raise our annual dividend for a fifth straight year, and we now have decided to increase the dividend even more than previously announced. While we have kept the interim dividend at ¥48 per share, we now plan to increase the previously announced year-end dividend \10 to \64 per share, which brings our planned full-year dividend to ¥112 per share, an increase of ¥14 from our fiscal 2024 dividend. In addition, we plan to increase shareholder returns in FY2026 from the initial plan by raising the dividend payout ratio from 20% to 30%, which will boost the total return ratio to above 30%.

“Best Alternative” strategy places us on a growth trajectory

In the tire business, we have made a series of acquisitions to strengthen OHT (off-highway tires). These acquisitions have been part of a Grand Design strategy implemented for more than 10 years that has enabled us to transform our tire business and realize a consumer tire to commercial tire sales ratio of 1:1, in line with the structure of the global tire market. We now have a product lineup comparable to that of Tier 1 tire makers and are one of the few comprehensive tire makers that can meet the needs of major customers. This result has been realized through the steady application of our Grand Design’s "Best Alternative" strategy, which is aimed at making us an alternative to Tier 1 tire makers and recently has led to an increase in inquiries from a wider range of customers, not only for the newly acquired OHT but also for existing tires. This has put our overall tire business on an elevated growth trajectory. We will continue to advance each of these strategies as we aim to consistently increase sales and profits and enhance our capital efficiency. We look forward to the continued support of all of our stakeholders.

September 2025