Consolidated Financial Results
for the Six Months Ended June 30, 2023
[IFRS]

August 7, 2023

Company name

: Sumitomo Rubber Industries, Ltd.

Stock exchange listing

: Tokyo Stock Exchange

Code number

: 5110

URL

: https://www.srigroup.co.jp/

Representative

: Satoru Yamamoto, President and CEO, Representative Director

Contact

: Shinji Araki, General Manager, Accounting & Finance Headquarters

Phone

: +81-78-265-3000

Scheduled date of filing quarterly securities report

: August 8, 2023

Scheduled date of commencing dividend payments

: September 5, 2023

Supplementary documents for quarterly financial results

: Yes

Quarterly financial results briefing session

: Yes (for institutional investors and analysts)

(Amounts of less than one million yen are rounded to the nearest unit.)

1. Consolidated Financial Results for the Six Months Ended June 30, 2023 (January 1, 2023 to June 30, 2023)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Sales revenue

Business profit

Operating profit

Profit attributable

to owners of parent

Comprehensive

income

Six months ended

June 30, 2023 June 30, 2022

Millions of yen

561,161

512,112

% Millions of yen

9.6 17,080

16.4 14,184

% Millions of yen

20.4 16,810

(52.9)

12,572

%

33.7

(56.0)

Millions of yen

8,196

17,187

  • Millions of yen
    (52.3) 47,677
    (16.2) 80,508

%

(40.8)

83.6

(Note) "Business profit" is "Sales revenue" subtracted by "Cost of sales" and "Selling, general and administrative expenses."

Basic profit per

share

Diluted profit

per share

Business profit to sales revenue ratio

Six months ended

June 30, 2023 June 30, 2022

Yen

31.16

65.35

Yen

-

-

%

3.0

2.8

(2) Consolidated Financial Position

Total assets

Total equity

Total equity

attributable to

owners of parent

Ratio of equity attributable to owners of parent

Equity attributable

to owners of

parent per share

As of

June 30, 2023 December 31, 2022

Millions of yen

1,249,782

1,225,202

Millions of yen

604,877

563,863

Millions of yen

589,901

546,200

%

47.2

44.6

Yen

2,242.81

2,076.74

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents at the

operating activities

investing activities

financing activities

end of period

Six months ended

June 30, 2023 June 30, 2022

Millions of yen

55,867

(110)

Millions of yen

(32,481)

(35,217)

Millions of yen

(28,557)

41,945

Millions of yen

74,192

93,310

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

December 31, 2022

-

20.00

-

15.00

35.00

December 31, 2023

-

5.00

Fiscal year ending

December 31, 2023

-

35.00

40.00

(Forecast)

(Note) Revision to the dividends forecast announced most recently: Yes

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023 (January 1, 2023 to December 31, 2023)

(% indicates changes from the previous corresponding period.)

Sales revenue

Business profit

Operating profit

Profit attributable

to owners of parent

Basic profit per

share

Full year

Millions of yen

1,170,000

%

6.5

Millions of yen

50,000

%

Millions of yen

%

127.7

41,000

173.6

Millions of yen

23,000

%

144.3

Yen

87.45

(Note) Revision to the financial results forecast announced most recently: Yes

Notes:

(1)

Changes in significant subsidiaries during the six months ended June 30, 2023

(changes in specified subsidiaries resulting in changes in scope of consolidation)

: None

(2)

Changes in accounting policies and changes in accounting estimates

1)

Changes in accounting policies required by IFRS

: Yes

2)

Changes in accounting policies other than 1)

: None

3)

Changes in accounting estimates

: None

  1. Total number of issued shares (common stock)
    1) Total number of issued shares at the end of the period (including treasury stock)

June 30, 2023

:

263,043,057 shares

December 31, 2022

:

263,043,057 shares

2)

Total number of treasury stock at the end of the period

June 30, 2023

:

23,992 shares

December 31, 2022

:

34,841 shares

3)

Average number of shares during the period

Six months ended June 30, 2023 Six months ended June 30, 2022

  • 263,012,864 shares
  • 263,001,225 shares
  • Quarterly financial statements are outside the scope of the quarterly review procedures to be conducted by certified public accountants or auditing firms.
  • Explanation of the proper use of financial results forecast and other notes

The earnings projections and other forward-looking statements herein are based on certain assumptions made in light of the information currently available to Sumitomo Rubber Industries, Ltd. (the "Company") and its group companies (collectively, the "Group") and do not constitute any promises by the Company that they will be realized. Actual results could differ significantly from these forecasts due to changes in various factors surrounding the businesses of the Company and the Group.

With regard to the matters related to the underlying assumptions for the above forecasts, please refer to page 5 of the attached documents of the Consolidated Financial Results for the Period under Review, "1. Qualitative Information on Interim Financial Results for the Period under Review, (3) Consolidated Financial Results Forecast and Other Future Forecast."

Table of Contents

1. Qualitative Information on Interim Financial Results for the Period under Review

2

(1)

Operating Results

2

(2)

Financial Position

4

(3)

Consolidated Financial Results Forecast and Other Future Forecast

5

2. Condensed Interim Consolidated Financial Statements and Primary Notes

6

(1)

Condensed Interim Consolidated Statements of Financial Position

6

(2)

Condensed Interim Consolidated Statements of Income and Comprehensive Income

8

(3)

Condensed Interim Consolidated Statements of Changes in Equity

10

(4)

Condensed Interim Consolidated Statements of Cash Flows

12

(5)

Notes on Condensed Interim Consolidated Financial Statements

13

(Notes on Going Concern Assumption)

13

(Significant Accounting Policies)

13

(Segment Information)

14

(Significant Subsequent Events)

16

- 1 -

1. Qualitative Information on Interim Financial Results for the Period under Review

(1) Operating Results

For the six

For the six

Change in

months ended

months ended

ratio

June 30, 2022

June 30, 2023

Millions of yen

Millions of yen

%

Sales revenue

512,112

561,161

9.6

Tires

430,853

471,076

9.3

Sports

61,533

68,149

10.8

Industrial and Other Products

19,726

21,936

11.2

Business profit

14,184

17,080

20.4

Tires

7,659

9,759

27.4

Sports

6,210

6,435

3.6

Industrial and Other Products

291

868

198.1

Adjustments

24

18

-

Operating profit

12,572

16,810

33.7

Profit attributable to owners

17,187

8,196

(52.3)

of profit

(Note) "Business profit" is "Sales revenue" subtracted by "Cost of sales" and "Selling, general and administrative expenses."

Foreign exchange rates applied

For the six

For the six

Increase

months ended

months ended

(Decrease)

June 30, 2022

June 30, 2023

Yen

Yen

Yen

Yen / U.S. Dollar

123

135

12

Yen / Euro

134

146

12

During the three months ended June 30, 2023, the economic environment continued to decelerate gradually due to the high levels of inflation in certain regions and drastic interest rate hikes to appease such rise in prices, and the geopolitical tension reflecting the situation in Ukraine. The Japanese economy witnessed rising uncertainty, including trends in foreign exchange and prices, though modestly rebounding against the backdrop of normalization of economic activities and expectation of continuing recovery pushed by rising wages.

In the business environment surrounding the Group, while the impact of soaring energy costs and a decline in automotive production volume due to the shortage of semiconductors was still observed, there was a significant reduction in freight costs that soared in the same period of the previous fiscal year and a lull in the soaring raw material prices.

Under these circumstances, the Group strongly promoted company-wide projects that aim to reinforce our business foundation with the goal of accomplishing the Mid-Term Plan, which sets 2027 as the target year. At the same time, we worked to strengthen our competitive advantage through such efforts as developing and expanding sales of high-performance products that meet the needs of customers.

As a result, sales revenue of the Group increased 9.6% from the same period of the previous fiscal year to ¥561,161 million, business profit increased 20.4% to ¥17,080 million, operating profit increased 33.7% to ¥16,810 million and profit attributable to owners of parent decreased 52.3% to ¥8,196 million.

- 2 -

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SRI - Sumitomo Rubber Industries Ltd. published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2023 07:48:17 UTC.