Financial Report (January 1 ~ September 3, 214) Sumitomo Rubber Industries, Ltd.
Key Subjects 214 3 rd Quarter Financial Results Summary Changes in Scope of Consolidation, Major Affiliated Companies Financial Results Summary 214 Annual Financial Results Projection Annual Financial Results Projection Summary Capex/Depreciation, Tire Production Capacity etc. 1 Changes in Consolidated Subsidiaries No change 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. Wako Tennis Co., Ltd. 2
Sumitomo Rubber Group Major Subsidiaries No change Tire business Sports business Industrial & Other Overall Control Goodyear Japan Dunlop Goodyear Tires Dunlop Sports Sales Manufacture Service Affiliates Domestic wholesale companies (11) Overseas wholesale company (U.S/EU/Asia/Russia/Thailand/China /India /Middle East/Latin America) Tire Overseas Factories: Indonesia, Thailand, China(Changshu), China(Hunan) Brazil, South Africa Under construction:turkey Natural Rubber-Processing Plant: Thailand SRI USA,SRITP,SRIE,Other JV:GDTE,GDTNA Naigai Rubber Tochigi SEI GSGPC,GSGTL Domestic wholesale companies(1) Overseas wholesale company (Canada/EU/Asia/Australia /Korea/China/Hong Kong/ South Africa/Thailand Domestic factory: Dunlop Golf Club Overseas Factory: Roger Cleveland Golf Company Tennis ball factory:thailand SRI Engineering, SRI Systems, SRI Logistics Wako Tennis Co., Ltd. Golf Course Dunlop Home Products Sumigomu Sangyo Sumigomu Takasago Integrate Hong Kong Sumirubber Zhongshan Sumirubber Sumirubber Vietnam Sumirubber Malaysia 72 Subsidiaries 12 Affiliates 3 Consolidated Financial Results Jan.-Sep. Sales 19.7 Operating Income (%) Ordinary Income (%) Net Income Jan.-Mar. Apr.-Jun. Jul.-Sep. Jan.-Sep. 18.5 (9.7%) 17.9 (9.4%) 1.9 '14 vs'13 '14 vs'13 '14 vs'13 '14 vs'13 116% +26.8 187.9 123% +3.5 124% +3.5 16.6 (8.8%) 17.2 (9.1%) 121% +1.9 11. 13% +5.9 197.2 113% +1.8 129% +3.8 14. (7.1%) 16.6 (8.4%) 169% +4.5 9.9 16% +11.1 575.8 16% +.7 129% +3.7 49.1 (8.5%) 51.6 (9.%) 17% +.6 31.7 18% +43.8 114% +6.1 127% +11. 128% +7. Equity Income.6 +1.3 1.3 +1.8 3.2 +2.2 5.1 +5.3 4
Consolidated Sales / Income Jan.-Sep. % Profit %, New High 6 55 5 45 4 35 3 25 2 15 1 5 (5) (1) Sales 467.6 424.5 356.7 6.3% 28.6 6.7% 29.4 Operating Income 25.3 6.% 26.5 5.7% 2.8% 9.9 14. 13.7.2%.8 Ordinary Income (2.) 575.8 532. 9.% 5. 51.6 8.1% 49.1 43.7 8.7% 43. 8.5% 41.8 4.6 8.4% 7.6% 31.7 24.7 23. Net Income '9 '1 '11 '12 '13 '14 6 55 5 45 4 35 3 25 2 15 1 5 5 Net Sales / Operating Income by Industry Segment Jan.-Sep. Jan.-Mar. Apr.-Jun. Jul.-Sep. Jan.-Sep. '14 vs'13 '14 vs'13 '14 vs'13 '14 vs'13 Tire 165.9 117% 163.2 15% 171.6 15% 5.7 19% Sales Sports 15.6 111% 17.1 91% 16.9 114% 49.6 14% Industrial & Others 9.2 12% 7.6 99% 8.7 16% 25.6 18% Consolidated 19.7 116% 187.9 13% 197.2 16% 575.8 18% Operating Income Tire 16.5 12% 15.1 12% 12.6 13% 44.1 115% Sports.6 1%.8 46%.4 263% 1.8 73% Industrial & Others 1.3 231%.8 159% 1. 114% 3.1 16% Consolidated 18.5 123% 16.6 113% 14. 16% 49.1 114% 6
Consolidated Operating Income by Industry segment Jan.-Sep. 5 Consolidated Operating Income 43.7 43. 49.1 4 44.1 3 28.6 29.4 38.4 38.5 2 1 Tire 27.4 Sports Industrial 22.5 & Others 9.9 4.6 6.9 3.9 1.9 2.5 1.1 1.6 1.2.8 1.4 1.9 3.1 1.8 '9Q3 '1Q3 '11Q3 '12Q3 '13Q3 '14Q3 7 Consolidated Operating Income by geographic area Jan.-Sep. 5 45 4 Sales '9Q3 '1Q3 '11Q3 '12Q3 '13Q3 '14Q3 Japan 261.6 281.5 281.7 34.7 31.7 317. Asia 36.9 56.8 74.2 84.6 16.3 114.2 Other 58.1 86.2 111.6 11.6 124. 144.6 Total 356.7 424.5 467.6 5. 532. 575.8 Consolidated Operating Income 43.7 43. 49.1 35 3 25 2 15 1 5 (5) 28.6 29.4 29.2 26.8 29.3 Japan Asia Other 2.1 17. 16.6 14.8 9.9 12.5 8.5 5.9 5.7 6.1 3.2 6.6. 2. (.5) (.3) '9Q3 '1Q3 '11Q3 '12Q3 '13Q3 '14Q3 8
Overseas Sales Jan. -Sep. 35 3 25 Overseas Sales 214.8 248.4 256.8 291. 321. 2 15 1 5 169.1 North America Europe Asia Other 12.5 111.2 88.8 81.8 83.9 55. 62.6 65.3 62.4 63.3 67.3 66.2 57.8 44.8 5.2 51.7 52.4 58.9 66.3 45.8 46.3 5.5 29. 19.2 Sales Percentage of Overseas '9Q3 '1Q3 '11Q3 '12Q3 '13Q3 '14Q3 356.7 424.5 467.6 5. 532. 575.8 47% 51% 53% 51% 55% 56% 9 Consolidated Operating Income Walk Jan. -Sep. '13Q3 43. 2.1 Raw Material (25.9) Natural Rubber Pet. Related Other Natural Rubber Pet. Related Others Price 17.7 14.9 11. 1.2 Volume & Mix 16.3 4. (.2).5 Direct Costs Fixed Costs (4.2) 6.1 3.9 FOREX (6.5) Exchange Rate 97 13 127 14 USD EUR Expense Sports (.7) 1.2 Industrial & Others Billions of Yen '14Q3 14 年 1-6 月 49.1 '12Q3 '13Q3 27.1 (16.7) (8.7) (.1) (2.5) 8.2 (7.3) (1.4).6 Total (.8) '11Q3 '12Q3 8.6 14.7 (1.1).6 (2.8) (4.5) (4.5) 2.8.5 Total 14.3 1
Consolidated Results Projection Annual Annual Proj. 214 Actual 213 '14 vs '13 Sales 84. 78.6 18% Operating Income (%) Ordinary Income (%) 84. (1.%) 81. (9.6%) 77.1 (9.9%) 74.6 (9.6%) 19% 19% Net Income 49. 44.8 19% Equity Income 5.1 (.4) +5.5 ROE 14.% 15.6% (1.6)P D/E Ratio.8.9 - No change 11 1 9 8 7 6 5 4 3 2 1 Consolidated Sales / Income Annual Sales 676.9 64.5 524.5 8.% 7.9% 53.9 Operating Income 47.6 49.9 5.5% 7.4% 42.5 28.7 7.% 28.4 3.8% 2. 21.4 9.1 % Profit %, New High 84. 78.6 1.% 84. 71.2 9.9% 77.1 81. 9.8% 69.7 9.6% 74.6 67.4 9.6% 9.5% Ordinary Income 49. 44.8 35.5 Net Income '9 '1 '11 '12 '13 '14 Proj. No change 9 8 7 6 5 4 3 2 1 12
Net Sales / Operating Income by Industry Segment Annual Sales Annual Proj. 214 Actual 213 '14 vs '13 Tire 735. 681.1 18% Sports 67. 66.3 11% Industrial & Others 38. 33.2 114% Consolidated 84. 78.6 18% No change Operating Income Tire 75.5 69.9 18% Sports 4.5 4. 113% Industrial & Others 4. 3.2 124% Consolidated 84. 77.1 19% 13 Consolidated Operating Income Walk (Oct.-Dec. Proj.) Oct.-Dec. Natural Rubber 4. Pet. Related (1.8) Others.2 '13 Q4 34.1 2.4 Raw Material Price (3.2) Natural Rubber Pet. Related Other 4.5 Volume & Mix 5.5 2..1.4 Direct Costs (1.5) Fixed Costs (3.1) '14 Q4 14 年 1-6 月 34.9 '12Q4 '13Q4 7.6 (9.3) 6.6 2.1 (1.8) 2.8 (1.3).9.5 Total 8.1 '11Q4 '12Q4 9.8 (2.9) (2.).. 1.1 (2.7) (2.).2 Total 1.5 14.8.5 FOREX Expense 1.2 Sports Industrial & Others (.4)
Consolidated Operating Income Walk (214 Proj.) Natural Rubber 2.3 Annual 22.5 Pet. Related 2.2 Price Q1 Q2 Q3 Q4 Ave. Natural Others. 214 2.35 1.98 1.78 1.69 1.95 Rubber (TSR 2) 213 2.84 2.99 2.6 2.45 2.72 ($/kg) 22.2.9 Crude Oil 214 17 17 15 16 16 (DUBAI) 213 19 17 16 12 16 ($/bbl) '13 77.1 Raw Material Price (29.1) Natural Rubber Pet. Related Other 19.2 1.1 (1.2) Volume & Mix Direct Costs (5.7) Fixed Costs 6.9 4.4 (9.6) Exchange Rate 98 14 13 139.5.8 14 年 1-6 月 84. Aug.7th Proj 19.1 (27.7) 25.4.8 (5.1) 3.4 (1.3).5.8 Total 6.9 '12 '13 34.7 (26.) (2.1) 2. (4.3) 11. (8.6) (.5) 1.1 Total 7.3 15 FOREX USD EUR Expense Sports Industrial & Others '14 Consolidated Operating Income Analysis '13 Period Operating Income vs Pre. Year Raw Material Price Volume & Mix Direct Costs Factor Fixed Costs FOREX Expense Sports Industrial & Others Q1 15. (1.) 7.9 (3.8) (3.1) (.5) (.6) 1.7 (1.8) (.9).1 Q2 14.8 (1.5) 8.8 (5.4) (1.8) (.2) (1.4) 1.3 (2.7) (.2).1 Q3 13.2 1.7 1.4 (7.5) (3.8).6 (.5) 5.2 (2.8) (.3).4 Q4 34.1 8.1 7.6 (9.3) 6.6 2.1 (1.8) 2.8 (1.3).9.5 Annual 77.1 7.3 34.7 (26.) (2.1) 2. (4.3) 11. (8.6) (.5) 1.1 '14 Q1 18.5 3.5 6.3 (8.7) 7.7.5 (1.3) 1.1 (2.9)..8 Q2 16.6 1.9 7.5 (9.) 4.4 (.6) (1.6) 1.8.1 (.9).2 Q3 14..7 6.3 (8.2) 5.6.6 (1.3) 1. (3.7).2.2 Q4 34.9.8 2.4 (3.2) 4.5.4 (1.5).5 (3.1) 1.2 (.4) Annual 84. 6.9 22.5 (29.1) 22.2.9 (5.7) 4.4 (9.6).5.8 (vs Aug. 7 th Proj.). 3.4 (1.4) (3.2).1 (.6) 1..7.. 16
Overseas Rep Tire Sales Volume (Comparison %) 213 ACT 214 Jan.-Sep.ACT, Oct.-Dec.Proj. 214 Aug.7th Proj. Jan-Mar Apr-Jun Jul-Sep Oct-Dec Annual Jan-Mar Apr-Jun Jul-Sep Oct-Dec Annual Jan-Jun Jul-Dec Annual Domestic O.E. Overseas O.E. Domestic Rep. Overseas Rep. Total 87% 92% 97% 15% 95% 16% 16% 11% 99% 13% 16% 97% 12% 12% 117% 122% 159% 129% 117% 132% 19% 19% 116% 124% 121% 122% 13% 11% 16% 16% 14% 125% 88% 11% 97% 11% 16% 97% 11% 9% 99% 11% 116% 11% 113% 118% 111% 112% 113% 116% 118% 117% 95% 1% 14% 116% 14% 115% 111% 17% 15% 19% 113% 11% 111% Total Tire Sales(units) 22,2 23,2 25,28 29,93 1,42 25,52 25,63 27,4 31,51 19,7 51,15 6,75 111,9 North America 85% 96% 9% 14% 94% 11% 13% 113% 12% 17% 16% 113% 19% Asia 12% 99% 14% 114% 15% 1% 112% 12% 17% 16% 17% 113% 11% Middle East 69% 95% 93% 128% 95% 124% 126% 1% 89% 18% 125% 98% 19% Europe &Russia 85% 95% 97% 116% 98% 94% 118% 111% 98% 14% 14% 17% 16% 17 Tire Overseas Rep. Volume by Regional Segment units 6, 5, 4, 3, 2, 1, Annual 94% 94 72 9 11 96 Numbers shown in the bar graph are yoy % by region 121% 117 135 159 96 126 17% 92 14 14 81 114 96% '9 '1 '11 '12 '13 '14 Proj. N. America S. America Europe & Russia Africa Middle East Asia Oceania Forex($) 93 88 8 8 98 14 (Rates applied for sales) 98 69 85 15 17 11% 94 156 98 95 15 113% 17 131 14 614 18 16 18
Capex and Depreciation Tangible Assets only No change Annual 7 6 5 4 3 2 1 67.9 Depreciation 57.4 58.6 Capex 47.5 39.9 37.5 33.4 3.8 31.2 33.6 33.5 31.8 46.6 36.9 38.1 29.5 13.7 16.4 '9 '1 '11 '12 '13 '14 Proj. Overseas Change in depreciation methods (4.8) 19 Tire Production Capacity Annual yoy 15% 14% 15% 17% 15% 14% t/mth 55, 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, 42,65 44,45 46,55 49,75 52,15 54,4 85 85 25 1 3,95 5,6 8,2 1,8 11,4 12,3 6 1,3 1,9 5,95 6, 6,65 6,65 6,65 6,65 4,45 4,45 5,1 5,1 5,1 5,1 2,7 2,7 75 75 75 75 9,35 9,35 9,35 9,35 9,35 9,35 6, 6, 6,15 6,15 6,15 6,15 1,25 1,35 1,35 1,35 1,35 1,35 '9/12 '1/12 '11/12 '12/12 '13/12 '14/12 Proj. No change Overseas ratio '9 34% '1 36% '11 43% '12 47% '13 49% '14 51% South Africa Brazil Thailand China(Hunan) China(Changshu) Indonesia Izumiotsu Miyazaki Nagoya Shirakawa 2
Tire Production Volume and Operating Ratio Annual t 7 6 5 4 3 2 1 yoy 84% 124% 18% 12% 12% 111% Operating ratio 79 382 171 93 474 227 96 514 Group production volume 92 9 245 265 258 1 st Half 525 534 95 589 292 1 9 8 7 6 % '9 '1 '11 '12 '13 '14 Proj. 5 21 Sales in the Sports Business Results 214 Q3 Jan.-Sep. 213 Q3 Jan.-Sep. '14 vs '13 Annual Proj. 214 Golf Clubs 24.7 23. 18% 34. Golf Balls 1.5 1.9 97% 14.2 Golf Shoes, Accessories & Others 5.8 5.4 16% 7.6 Golf goods 41.1 39.2 15% 55.7 Tennis goods 4.6 4.8 94% 6.3 Licensing income.3.3 116%.4 Sports goods business 46. 44.4 14% 62.4 Other business 3.6 3.1 115% 4.6 Total 49.6 47.5 14% 67. 22
New Products / New Technology 23 55 5 45 4 35 3 25 2 15 1 5 Market Price: Natural Rubber Naphtha /kl 9 85 8 75 7 65 6 55 5 45 4 35 3 25 2 15 Naphtha Price (prod. in Japan) Crued Oil (DUBAI) US /kg 5 NR SICOM TSR2 (Ave.) 51.5 75.1 1.4 12.7 138.6 215.3 253. 194.6 338. 18.4 451.9 315.6 251.7 178. '1 '2 '3 '4 '5 '6 '7 '8 '9 '1 '11 '12 '13 '14 $/bbl 14 55 12 145 8 35 6 25 4 2 15 US /kg 211 212 21 213 214 26 27 NR SICOM TSR2 Monthly Move 25 28 24 29 23 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Trend of Raising of tire prices Domestic REP: Whole Sale price for sales co. May '4 Ave. 5% Sep. '5 4 ~ 4.5% Apr. '6 4 ~ 4.5% Feb. '7 5% Apr. '8 5% Sep. '8 5% Mar. '11 7% (TB) May. '11 7 ~ 1% Sep. '11 8% (TB) Overseas REP: '4 3% '5 3% '6 3% '7 3 ~ 6% '8 5 ~ 1% '9 5 ~ 1% '11 5 ~ 1% 24
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