第112期決算説明会

(1)

Sumitomo Rubber Industries, Ltd.

Financial Report

(2)

1

Key Subjects



2014 3

rd

_Quarter

Financial Results Summary



Changes in Scope of Consolidation,

Major Affiliated Companies



Financial Results Summary



2014 Annual Financial Results Projection



Annual Financial Results Projection Summary



Capex/Depreciation,

Tire Production Capacity etc.

2

Changes in Consolidated Subsidiaries

Scope of Consolidation Consolidated Subsidiaries 72 [3]

Equity-method affiliates 12 [(1)] Unconsolidated Subs 3 Affiliated companies 9 # of changed Companies Newly included 4 Excluded (1) Newly included - Excluded (1)

4 （1） - （1）

Wako Tennis Co., Ltd.

SRI Europe GmbH

Sumitomo Rubber AKO Lastik Sanayi ve Ticaret A.Ş.

Sumigomu Takasago Integrate, Ltd.

(Merged with Dunlop Sports Marketing Co., Ltd.)

Dunlop Sports Okinawa Co., Ltd.

(3)

3

Sumitomo Rubber Group Major Subsidiaries

Domestic wholesale companies (11)

Overseas wholesale company (U.S/EU/Asia/Russia/Thailand/China

/India /Middle East/Latin America)

Domestic wholesale companies(1)

Overseas wholesale company (Canada/EU/Asia/Australia

/Korea/China/Hong Kong/ South Africa/Thailand

Dunlop Home Products Sumigomu Sangyo Sumigomu Takasago Integrate

Hong Kong Sumirubber

JV:GDTE,GDTNA Naigai Rubber Tochigi SEI GSGPC,GSGTL Golf Course A ff ili at es Domestic factory: Dunlop Golf Club Overseas Factory: Roger Cleveland Golf Company

Tennis ball factory:Thailand

Tire Overseas Factories: Indonesia, Thailand, China(Changshu), China(Hunan)

Brazil, South Africa Under construction:Turkey Natural Rubber-Processing Plant:

Thailand S al es Ma n u fact u re Zhongshan Sumirubber Sumirubber Vietnam Sumirubber Malaysia

Tire business Sports business Industrial & Other

S

er

v

ic

e

SRI Engineering, SRI Systems, SRI Logistics

72 Subsidiaries 12 Affiliates SRI USA,SRITP,SRIE,Other

Dunlop Sports

O v er al l C o n tr o l Goodyear Japan Dunlop Goodyear Tires

No change

4

Consolidated Financial Results

Billions of Yen

Jan.-Mar. Apr.-Jun. Jul.-Sep. Jan.-Sep.

'14 vs'13 '14 vs'13 '14 vs'13 '14 vs'13

Sales

190.7

_+26.8116%

187.9

103%_+5.9

197.2

_+11.1106%

575.8

_+43.8108%

Operating

Income

(%)

18.5

(9.7%) 123% +3.5

16.6

(8.8%) 113% +1.8

14.0

(7.1%) 106% +0.7

49.1

(8.5%) 114% +6.1

Ordinary

Income

(%)

17.9

(9.4%) 124% +3.5

17.2

(9.1%) 129% +3.8

16.6

(8.4%) 129% +3.7

51.6

(9.0%) 127% +11.0

Net

Income

10.9

121% +1.9

11.0

169% +4.5

9.9

107% +0.6

31.7

128% +7.0 Equity Income 0.6 +1.3 1.3 +1.8 3.2 +2.2 5.1 +5.3

Jan.-Sep.

(4)

5

Consolidated Sales / Income

0.8 25.3 26.5 41.8 _40.6 51.6 (2.0) 14.0 13.7 23.0 24.7 31.7 9.9 28.6 29.4 43.7 43.0 49.1 356.7 424.5 467.6 500.0 532.0 575.8 0 50 100 150 200 250 300 350 400 450 500 550 600 (10) (5) 0 5 10 15 20 25 30 35 40 45 50 55 60 '09 '10 '11 '12 '13 '14 Operating Income Ordinary Income Net Income Sales 7.6% 8.1% 6.7% 6.0%

% Profit %, New High

6.3% 5.7% 8.7% 8.4% 8.5% 9.0%

Billions of Yen

Jan.-Sep.

2.8% 0.2% 6

Billions of Yen

Net Sales / Operating Income by Industry Segment

Jan.-Mar. Apr.-Jun. Jul.-Sep. Jan.-Sep.

'14 vs'13 '14 vs'13 '14 vs'13 '14 vs'13 Sales Tire

_165.9

117%

163.2

105%

171.6

105%

500.7

109% Sports

_15.6

111%

_17.1

91%

_16.9

114%

_49.6

104% Industrial & Others

9.2

120%

7.6

99%

8.7

106%

25.6

108% Consolidated

_190.7

116%

_187.9

103%

_197.2

106%

_575.8

108% Op er atin g I n co m e Tire

_16.5

120%

15.1

120%

12.6

103%

44.1

115% Sports

0.6

100%

0.8

46%

0.4

263%

1.8

73% Industrial & Others

1.3

231%

0.8

159%

1.0

114%

3.1

160% Consolidated

_18.5

123%

_16.6

113%

_14.0

106%

_49.1

114%

Jan.-Sep.

(5)

7

Consolidated Operating Income by Industry segment

6.9 22.5 27.4 38.4 _38.5 44.1 1.9 4.6 1.2 3.9 2.5 1.8 1.1 1.6 0.8 1.4 1.9 3.1 9.9 28.6 29.4 43.7 _43.0 49.1 0 10 20 30 40 50 '09Q3 '10Q3 '11Q3 '12Q3 '13Q3 '14Q3

Tire Sports Industrial

& Others Consolidated Operating Income

Jan.-Sep.

_{Billions of Yen}

8 3.2 17.0 14.8 29.2 26.8 29.3 6.6 5.9 6.1 12.5 16.6 20.1 0.0 5.7 8.5 2.0 (0.5) (0.3) 9.9 28.6 29.4 43.7 43.0 49.1 (5) 0 5 10 15 20 25 30 35 40 45 50 '09Q3 '10Q3 '11Q3 '12Q3 '13Q3 '14Q3

Japan Asia Other

Consolidated Operating Income

Consolidated Operating Income by geographic area

Jan.-Sep.

Billions of Yen

Sales '09Q3 '10Q3 '11Q3 '12Q3 '13Q3 '14Q3 Japan 261.6 281.5 281.7 304.7 301.7 317.0

Asia 36.9 56.8 74.2 84.6 106.3 114.2

Other 58.1 86.2 111.6 110.6 124.0 144.6

(6)

9

Overseas Sales

55.0 62.6 62.4 63.3 67.3 66.2 19.2 29.0 51.7 45.8 46.3 50.5 44.8 65.3 81.8 88.8 111.2 120.5 50.2 57.8 52.4 58.9 66.3 83.9 169.1 214.8 248.4 256.8 291.0 321.0 0 50 100 150 200 250 300 350 '09Q3 '10Q3 '11Q3 '12Q3 '13Q3 '14Q3 North

America Europe Other

Sales Percentage of Overseas Overseas Sales Asia 356.7 424.5 467.6 500.0 532.0 575.8 47％ 51％ 53％ 51％ 55％ 56％

Billions of Yen

Jan. -Sep.

14年

1-6月

(6.5)

43.0

49.1 (0.7)

(4.2)

3.9

6.1

0.5

1.2

20.1 (25.9)

17.7 Jan. -Sep.

'

13Q3

'

14Q3

Consolidated Operating Income Walk

Natural Rubber Pet. Related Other 14.9 11.0 1.2 Natural Rubber Pet. Related Others 16.3 4.0 (0.2) Exchange Rate USD EUR → → 103 140 97 127

Billions

of Yen

'12Q3→'13Q3 27.1 (16.7) (8.7) (0.1) (2.5) 8.2 (7.3) (1.4) 0.6 Total (0.8) '11Q3→'12Q3 8.6 14.7 (1.1) 0.6 (2.8) (4.5) (4.5) 2.8 0.5 Total 14.3

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Expense

Sport

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Indust

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10 V o lu m e & Mix

(7)

11

Consolidated Results Projection

Annual

Billions of Yen

Annual Proj. 2014 Actual 2013 '14 vs '13

Sales

840.0

780.6 108%

Operating Income (%)

84.0

(10.0%)

77.1

(9.9%)

109%

Ordinary Income (%)

81.0

(9.6%)

74.6

(9.6%)

109%

Net Income

49.0

44.8 109%

Equity Income

_5.1

_(0.4)

_+5.5

ROE

14.0 %

15.6 %

(1.6)

P

D/E Ratio

0.8

0.9 -

No change 12

Consolidated Sales / Income

20.0 42.5 49.9 67.4 74.6 81.0 9.1 21.4 28.4 35.5 44.8 49.0 28.7 47.6 53.9 69.7 77.1 84.0 524.5 604.5 676.9 710.2 780.6 840.0 0 100 200 300 400 500 600 700 800 900 0 10 20 30 40 50 60 70 80 90 100 '09 '10 '11 '12 '13 '14 Proj. Operating Income Ordinary Income Net Income Sales 9.6% 9.9% 7.9% 7.0%

% Profit %, New High

8.0% 7.4% 9.8% 9.5% 10.0% 9.6%

Billions of Yen

5.5% 3.8%

Annual

No change

(8)

Net Sales / Operating Income by Industry Segment

Annual

13

Billions of Yen

Annual Proj. 2014 Actual 2013 '14 vs '13 Sales Tire

735.0

681.1 108%

Sports

_67.0

_66.3

_101%

Industrial & Others

_38.0

_33.2

_114%

Consolidated

840.0

780.6 108%

Op er atin g I n co m e Tire

_75.5

_69.9

_108%

Sports

_4.5

_4.0

_113%

Industrial & Others

_4.0

_3.2

_124%

Consolidated

_84.0

_77.1

_109%

No change 14

14年

1-6月

(3.1)

34.1

34.9

1.2 (1.5)

0.5

0.8

0.4 (0.4)

2.4 (3.2)

4.5

'11Q4→'12Q4 9.8 (2.9) (2.0) 0.0 0.0 1.1 (2.7) (2.0) 0.2 Total 1.5

Consolidated Operating Income Walk

(Oct.-Dec. Proj.)

'13 Q4

'14 Q4

'12Q4→'13Q4 7.6 (9.3) 6.6 2.1 (1.8) 2.8 (1.3) 0.9 0.5 Total 8.1

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Fixed

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Sport

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In d u str ial & Oth er s Natural Rubber Pet. Related Others 4.0 (1.8) 0.2 Natural Rubber Pet. Related Other 5.5 2.0 0.1

Expense

Billions of Yen

Oct.-Dec.

V

ol

um

e

&

Mi

x

(9)

14年

1-6月

(9.6)

77.1

84.0

0.5 (5.7)

4.4

6.9

0.9

0.8

22.5 (29.1)

22.2

Aug.7th Proj 19.1 (27.7) 25.4 0.8 (5.1) 3.4 (10.3) 0.5 0.8 Total 6.9 '12→'13 34.7 (26.0) (2.1) 2.0 (4.3) 11.0 (8.6) (0.5) 1.1 Total 7.3

（$/kg）

（$/bbl）

Consolidated Operating Income Walk

(2014 Proj.)

Natural Rubber Pet. Related Others 20.3 2.2 0.0 Exchange Rate USD EUR → → 104 139 98 130 Natural Rubber Pet. Related Other 19.2 1.1 (1.2)

Billions of Yen

Annual

Price Q1 Q2 Q3 Q4 Ave.

Natural Rubber (TSR 20) 2014 2.35 1.98 1.78 1.69 1.95 2013 2.84 2.99 2.60 2.45 2.72 Crude Oil (DUBAI) 2014 107 107 105 106 106 2013 109 107 106 102 106

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Sport

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Indust

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&

O

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Expense

'13

'14

15

V

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16

Consolidated Operating Income Analysis

Billions of Yen Period Operating Income Factor R a w M a te ri a l Pr ic e V o lu m e & M ix D ir ec t C o st s Fi x ed C o st s FOR E X E x p en se S p o rt s In d u st rial & Ot h er s vs Pre. Year '13 Q1 15.0 (1.0) 7.9 (3.8) (3.1) (0.5) (0.6) 1.7 (1.8) (0.9) 0.1 Q2 14.8 (1.5) 8.8 (5.4) (1.8) (0.2) (1.4) 1.3 (2.7) (0.2) 0.1 Q3 13.2 1.7 10.4 (7.5) (3.8) 0.6 (0.5) 5.2 (2.8) (0.3) 0.4 Q4 34.1 8.1 7.6 (9.3) 6.6 2.1 (1.8) 2.8 (1.3) 0.9 0.5 Annual 77.1 7.3 34.7 (26.0) (2.1) 2.0 (4.3) 11.0 (8.6) (0.5) 1.1 '14 Q1 18.5 3.5 6.3 (8.7) 7.7 0.5 (1.3) 1.1 (2.9) 0.0 0.8 Q2 16.6 1.9 7.5 (9.0) 4.4 (0.6) (1.6) 1.8 0.1 (0.9) 0.2 Q3 14.0 0.7 6.3 (8.2) 5.6 0.6 (1.3) 1.0 (3.7) 0.2 0.2 Q4 34.9 0.8 2.4 (3.2) 4.5 0.4 (1.5) 0.5 (3.1) 1.2 (0.4) Annual _84.0 _6.9 22.5 (29.1) 22.2 0.9 (5.7) 4.4 (9.6) 0.5 0.8 (vs Aug. 7th_{Proj.) 0.0} _3.4 _{(1.4) (3.2)} _{0.1 (0.6)} _1.0 _0.7 _0.0 _0.0

(10)

17

Tire Sales Volume

(Comparison %)

Jan-M ar Apr-Jun Jul-Sep Oct-Dec Annual Jan-M ar Apr-Jun Jul-S ep Oct-Dec Annual Jan-Jun Jul-Dec Annual

87% 92% 97% 105% 95% 106% 106% 101% 99% 103% 106% 97% 102% 120% 117% 122% 159% 129% 117% 132% 109% 109% 116% 124% 121% 122% 103% 101% 106% 106% 104% 125% 88% 101% 97% 101% 106% 97% 101% 90% 99% 101% 116% 101% 113% 118% 111% 112% 113% 116% 118% 117% 95% 100% 104% 116% 104% 115% 111% 107% 105% 109% 113% 110% 111% 22,200 23,020 25,280 29,930 100,420 25,520 25,630 27,040 31,510 109,700 51,150 60,750 111,900 North America 85% 96% 90% 104% 94% 110% 103% 113% 102% 107% 106% 113% 109% Asia 102% 99% 104% 114% 105% 100% 112% 102% 107% 106% 107% 113% 110% M iddle East 69% 95% 93% 128% 95% 124% 126% 100% 89% 108% 125% 98% 109% Europe 　　&Russia 85% 95% 97% 116% 98% 94% 118% 111% 98% 104% 104% 107% 106% Domestic Rep. Overseas Rep. Total Total Tire Sales(000units) O ve rs ea s R ep Overseas O.E.

2013 ACT 2014 Jan.-Sep.ACT, Oct.-Dec.Proj. 2014 Aug.7th Proj.

Domestic O.E. 0 10,000 20,000 30,000 40,000 50,000 60,000 '09 '10 '11 '12 '13 '14 Proj. N. America S. America Europe & Russia Africa Middle East Asia Oceania 18

Tire Overseas Rep.

V

olume by Regional Segment

Forex($) 93 88 80 80 98 104 (Rates applied for sales) Numbers shown

in the bar graph are yoy % by region 72 96 101 94 90 94% 135 126 96 117 159 121% 000 units 107%

Annual

92 140 140 81 114 98 69 85 105 107 101% 94 98 105 95 156 96% 113% 107 131 104 108 106 614

(11)

0

10

20

30

40

50

60

70 '09

'10

'11

'12

'13

'14 Proj.

30.8

31.2

47.5

57.4

58.6

67.9

33.4

33.6

33.5 _31.8

37.5

39.9

19 Capex Depreciation 13.7 16.4 29.5 36.9

Billions of Yen

Change in depreciation methods (4.8)

Annual

Overseas

38.1

46.6

Capex and Depreciation

Tangible Assets only _{No change}

20

Tire Production Capacity

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 '09/12 '10/12 '11/12 '12/12 '13/12 '14/12 Proj. 10,250 10,350 10,350 10,350 10,350 10,350 6,000 6,000 6,150 6,150 6,150 6,150 9,350 9,350 9,350 9,350 9,350 9,350 2,700 2,700 750 750 750 750 4,450 4,450 5,100 5,100 5,100 5,100 5,950 6,000 6,650 6,650 _6,650 6,650 600 1,300 1,900 3,950 5,600 8,200 10,800 11,400 12,300 250 1000 850 850 South Africa Brazil Thailand China(Hunan) China(Changshu) Indonesia Izumiotsu Miyazaki Nagoya Shirakawa yoy 105% 104% 105% 107% 105% 104% 42,650 44,450 46,550 49,750 52,150 54,400 t/Mth Overseas ratio '09 34％ '10 36％ '11 43％ '12 47％ '13 49％ '14 51％

Annual

No change

(12)

21

171

227

245

265

258

292

79

93

96

92

90

95

50 60 70 80 90 100 0 100 200 300 400 500 600 700 '09 '10 '11 '12 '13 '14 Proj.

Tire Production Volume and Operating Ratio

yoy

84% 124% 108% 102% 102% 111%

514 1st_Half % Operating ratio Group production volume 000t 382 474 525

Annual

534 589 22

Sales in the Sports Business Results

Billions of Yen

2014 Q3 Jan.-Sep. 2013 Q3 Jan.-Sep. '14 vs '13 Annual Proj. 2014 Golf Clubs

_24.7

_23.0

_108%

_34.0

Golf Balls

_10.5

_10.9

_97%

_14.2

Golf Shoes, Accessories & Others

_5.8

_5.4

_106%

_7.6

Golf goods

_41.1

_39.2

105%

55.7

Tennis goods

_4.6

_4.8

94%

6.3

Licensing income

_0.3

116%

0.4

Sports goods business

46.0

44.4

104%

62.4

Other business

3.6

3.1

115%

4.6

(13)

New Products / New Technology

23 51.5 75.1 100.4 120.7 138.6 194.6 215.3 253.0 180.4 338.0 451.9 315.6 251.7 178.0 0 50 100 150 200 250 300 350 400 450 500 550 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 US￠/kg 50 150 250 350 450 550

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

US￠/kg 20 40 60 80 100 120 140 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 2007 2003 2004 $/bbl 2005 2006 2008 2009 2010 2011 2012 2013 2014 ¥000/kl Naphtha Price (prod. in Japan) Crued Oil (DUBAI) NR SICOM TSR20 (Ave.)

NR SICOM TSR20 Monthly Move

Domestic REP: Whole Sale price for sales co. May '04 Ave. 5% Sep. '05 4 ~ 4.5% Apr. '06 4 ~ 4.5% Feb. '07 5% Apr. '08 5% Sep. '08 5% Mar. '11 7% (TB) May. '11 7 ~ 10% Sep. '11 8% (TB) Overseas REP: '04 3% '05 3% '06 3% '07 3 ~ 6% '08 5 ~ 10% '09 5 ~ 10% '11 5 ~ 10%

Trend of Raising of tire prices

Market Price: Natural Rubber・Naphtha

(14)

25

第112期 決算説明会

Sumitomo Rubber Industries, Ltd.

Financial Report

Key Subjects



2014 3

rd

Quarter

Financial Results Summary



Changes in Scope of Consolidation,

Major Affiliated Companies



Financial Results Summary



2014 Annual Financial Results Projection



Annual Financial Results Projection Summary



Capex/Depreciation,

Tire Production Capacity etc.

Changes in Consolidated Subsidiaries

Sumitomo Rubber Group Major Subsidiaries

Dunlop Sports

Consolidated Financial Results

Billions of Yen

Sales

190.7

187.9

197.2

575.8

Operating

Income

18.5

16.6

14.0

49.1

Ordinary

Income

17.9

17.2

16.6

51.6

Net

Income

10.9

11.0

9.9

31.7

Jan.-Sep.

Consolidated Sales / Income

Billions of Yen

Jan.-Sep.

Billions of Yen

Net Sales / Operating Income by Industry Segment

165.9

163.2

171.6

500.7

15.6

17.1

16.9

49.6

9.2

7.6

8.7

25.6

190.7

187.9

197.2

575.8

16.5

15.1

12.6

44.1

0.6

0.8

0.4

1.8

1.3

第112期決算説明会

_Quarter

_165.9

_15.6

_17.1

_16.9

_49.6

_190.7

_187.9

_197.2

_575.8

_16.5

_18.5

_16.6

_14.0

_49.1

_{Billions of Yen}