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TOYO TIRES Financial Results for 2nd Quarter of FY2026 August 7 , 2026 Toyo Tire Corporation
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1．Financial Results for 2nd Quarter (1st Half) of FY2026 2．Financial Forecast for FY2026 3. Topics
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2/22 Highlights of Financial Results ◼ Despite continued strong sales of WLTRs*, tire unit sales declined due to weak markets in the U.S. and other countries. ⇒ Operating income decreased year-on-year to 37.5 billion yen. ◼ The computer system issue resulted in lost opportunities from the sales decline and higher production costs from reduced production. ⇒ The negative impact on operating income was 4.2 billion yen through June. ◼ Given the current situation, the full-year operating income forecast for FY2026 has been revised downward to 90.0 billion yen. (previous forecast: 94.0 billion yen) ◼ The forecast for the annual dividend per share remains unchanged at 135 yen, an increase from the previous fiscal year. * Wide light truck tires
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3/22 Financial Results for 2nd Quarter of FY2026 (Jan - Jun) 2026 1H Results 2025 1H Results Change Change (%) 2026 1H Forecast Change 2026 Apr-Jun Results Change (YoY) Net Sales 284,190 283,410 +779 +0.3％ 296,000 (11,809) 153,238 +5,338 Operating Income 37,497 48,176 (10,678) (22.2％) 42,000 (4,502) 16,887 (8,869) Margin 13.2% 17.0％ ー － 14.2% － 11.0％ ー Ordinary Income 39,415 43,730 (4,315) (9.9％) 32,000 +7,415 18,062 (7,411) Profit Attributable to Owners of Parent* 29,436 33,330 (3,893) (11.7％) 20,000 +9,436 13,960 (5,864) *Profit attributable to parent company shareholders Interim Dividends per Share 65 Yen 60 Yen +5 Yen ー 1 USD 158 Yen 149 Yen +9 Yen 1 EUR 185 Yen 162 Yen +23 Yen （Millions of yen）
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4/22 Analysis of Operating Income for 2nd Quarter of FY2026 （ Jan - Jun ） （ vs 2025 ） （Billions of yen） Tires (10.7) Others (0.0) (5.5) (1.4) (1.5) ＋3.7 ＋3.9 (1.3) (8.5) (0.0) (0.0) 48.2 37.5 2025 1H Sales Factors Production Cost SGA Expenses Raw Materials Forex Rate Freight Cost Tariff Impact Automotive Parts Other 2026 1H Sales Factors Production Cost SGA Expenses Raw Materials Forex Rate Freight Cost Tariff Impact Automotive Parts Other Total Jan-Mar (0.0) (0.4) (0.9) +3.9 +0.1 (0.3) (4.2) +0.1 (0.0) (1.8) Apr-Jun (5.5) (1.1) (0.5) (0.2) +3.8 (1.0) (4.2) (0.1) (0.0) (8.9) Computer System Issue Sales Factors：（2.3） Production Cost：（1.9）
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5/22 Analysis of Operating Income for 2nd Quarter of FY2026 （ Jan - Jun ） （ vs Previous Forecast ） Tires (5.2) Others ＋0.7 (11.9) (4.4) ＋0.8 ＋1.7 ＋5.6 ＋1.7 ＋1.3 ＋0.7 (0.0) 42.0 37.5 2026 1H Forecast Sales Factors Production Cost SGA Expenses Raw Materials Forex Rate Freight Cost Tariff Impact Automotive Parts Other 2026 1H Results （Billions of yen） Computer System Issue Sales Factors：（2.3） Production Cost：（1.9）
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6/22 Net Sales 2026 1H Results 2025 1H Results Change Change (%) 2026 1H Forecast Change 2026 Apr-Jun Results Change (YoY) Tires 260,058 260,409 (351) (0.1%) 273,000 (12,941) 140,728 +4,083 Automotive Parts 24,132 23,001 +1,131 +4.9% 23,000 +1,132 12,509 +1,255 Other ー ー ー ー ー ー ー ー Adjustments ー ー ー ー ー ー ー ー Total 284,190 283,410 +779 +0.3% 296,000 (11,809) 153,238 +5,338 *Net sales include intersegment internal net sales or transfers Operating Income 2026 1H Results 2025 1H Results Change Change (%) 2026 1H Forecast Change 2026 Apr-Jun Results Change (YoY) Tires 36,425 47,084 (10,659) (22.6%) 41,600 (5,174) 16,383 (8,799) Margin 14.0% 18.1% ー ー 15.2％ ー 11.6％ ー Automotive Parts 1,075 1,081 (5) (0.6%) 400 +675 508 (63) Margin 4.5% 4.7% ー ー 1.7％ ー 4.1% ー Other (3) 9 (13) ー ー (3) (4) (6) Adjustments ー ー ー ー ー ー ー ー Total 37,497 48,176 (10,678) (22.2%) 42,000 (4,502) 16,887 (8,869) *Segment profit adjustment amounts include intersegment eliminations (Millions of yen) Business Segments for 2nd Quarter of FY2026 （ Jan - Jun)
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7/22 Net Sales 2026 1H Results 2025 1H Results Change Change (%) 2026 1H Forecast Change 2026 Apr-Jun Results Change (YoY) Japan 50,437 55,462 (5,024) (9.1％) 58,500 (8,062) 26,611 (1,872) N.America 201,398 191,926 +9,471 +4.9％ 200,600 +798 109,017 +8,636 Other 32,354 36,021 (3,667) (10.2％) 36,900 (4,545) 17,610 (1,425) Eliminations or Adjustments － － － － ー － － － Total 284,190 283,410 +779 +0.3％ 296,000 (11,809) 153,238 +5,338 *Net sales do not include intersegment internal net sales or transfers Operating Income 2026 1H Results 2025 1H Results Change Change (%) 2026 1H Forecast Change 2026 Apr-Jun Results Change (YoY) Japan 26,858 29,932 (3,074) (10.3％) 37,300 (10,441) 11,383 (4,567) N.America 3,486 10,337 (6,850) (66.3％) 2,100 +1,386 1,168 (3,808) Other 9,144 8,965 +179 +2.0％ 8,300 +844 5,239 +403 Eliminations or Adjustments (1,992) (1,059) (933) － (5,700) +3,707 (903) (897) Total 37,497 48,176 (10,678) (22.2％) 42,000 (4,502) 16,887 (8,869) Geographic Area Segments for 2nd Quarter of FY2026 （ Jan - Jun) (Millions of yen)
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1．Financial Results for 2nd Quarter (1st Half) of FY2026 2．Financial Forecast for FY2026 3. Topics
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9/22 2026 Forecast 2025 Results Change Change (%) 2026 Previous Forecast Change 2026 2H Forecast Change (YoY) Net Sales 638,000 594,923 +43,076 +7.2% 620,000 +18,000 353,809 +42,297 Operating Income 90,000 97,350 (7,350) (7.6％) 94,000 (4,000) 52,502 +3,328 Margin 14.1% 16.4% ー ー 15.2% ー 14.8% － Ordinary Income 87,000 101,328 (14,328) (14.1％) 82,000 +5,000 47,584 (10,012) Profit Attributable to Owners of Parent* 62, 0 00 63,614 (1,614) (2.5％) 54,000 +8,000 32,563 +2,279 *Profit attributable to parent company shareholders Annual Dividends per Share 135 Yen 130 Yen +5 Yen ー 135 Yen ±0 Yen 1 USD 157 Yen 150 Yen +7 Yen 1 EUR 183 Yen 169 Yen +14 Yen (Millions of yen) Forex Rate Sensitivity 2026 USD 0.8 Billion Yen/Year EUR 0.1 Billion Yen/Year Impact of 1 yen fluctuation on operating income Financial Forecast for FY2026 （ Jan - Dec ）
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10/22 Tires (6.5) Others (0.8) Sales Factors Production Cost SGA Expenses Raw Materials Forex Rate Freight Cost Tariff Impact Automotive Parts Other Total Jan-Jun Results (5.5) (1.4) (1.5) +3.7 +3.9 (1.3) (8.5) (0.0) (0.0) (10.7) Jul-Dec Forecast +23.9 (0.4) (2.4) (17.4) +3.7 (4.6) +1.2 (0.8) (0.0) +3.3 (1.8) (13.7) ＋7.6 (7.3) 97.4 ＋18.4 (3.8) (0.0) 90.0 2025 Results Sales Factors Production Cost SGA Expenses Raw Materials Forex Rate Freight Cost Tariff Impact Automotive Parts Other 2026 Forecast (5.9) (0.8) Analysis of Operating Income for FY2026 （ Jan - Dec ）（ vs 2025 ） （Billions of yen）
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11/22 Tires (4.5) Others ＋0.5 2026 2H Previous Forecast Sales Factors Production Cost SGA Expenses Raw Materials Forex Rate Freight Cost Tariff Impact Automotive Parts Other 2026 2H Forecast 52.0 +10.4 (1.9) +1.2 (14.3) +6.9 (1.4) (0.2) (0.2) +0.0 52.5 (6.3) (12.6) ＋1.1 94.0 (1.4) ＋1.9 90.0 2026 Previous Forecast Sales Factors Production Cost SGA Expenses Raw Materials Forex Rate Freight Cost Tariff Impact Automotive Parts Other 2026 Forecast ＋0.3 ＋0.5 +0.0 Analysis of Operating Income for FY2026 （ Jan - Dec ） （ vs Previous Forecast ） （Billions of yen） ＋12.6
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12/22 Net Sales 2026 Forecast 2025 Results Change Change (%) 2026 Previous Forecast Change 2026 2H Forecast Change (YoY) Tires 590,000 547,697 +42,302 +7.7％ 574,000 +16,000 329,941 +42,653 Automotive Parts 48,000 47,225 +774 +1.6％ 46,000 +2,000 23,867 (356) Other ー ー ー ー ー ー ー ー Adjustments ー ー ー ー ー ー ー ー Total 638,000 594,923 +43,076 +7.2％ 620,000 +18,000 353,809 +42,297 *Net sales include intersegment internal net sales or transfers Operating Income 2026 Forecast 2025 Results Change Change (%) 2026 Previous Forecast Change 2026 2H Forecast Change (YoY) Tires 89,000 95,509 (6,509) (6.8％) 93,500 (4,500) 52,574 +4,149 Margin 15.1 ％ 17.4% － ー 16.3％ － 15.9％ ー Automotive Parts 1,000 1,821 (821) (45.1%) 500 +500 (75) (815) Margin 2.1 ％ 3.9% － ー 1.1％ － (0.3%) ー Other ー 19 (19) ー ー ー 3 (6) Adjustments ー ー ー ー ー ー ー ー Total 90,000 97,350 (7,350) (7.6％) 94,000 (4,000) 52,502 +3,328 *Segment profit adjustment amounts include intersegment eliminations (Millions of yen) Business Segments for FY2026 （ Jan - Dec)
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13/22 Net Sales 2026 Forecast 2025 Results Change Change (%) 2026 Previous Forecast Change 2026 2H Forecast Change (YoY) Japan 125,500 121,985 +3,514 +2.9％ 130,900 (5,400) 75,062 +8,539 N.America 444,900 403,915 +40,984 +10.1％ 420,200 +24,700 243,501 +31,512 Other 67,600 69,021 (1,421) (2.1%) 68,900 (1,300) 35,245 +2,245 Eliminations or Adjustments ー － ー ー ー ー ー ー Total 638,000 594,923 +43,076 +7.2％ 620,000 +18,000 353,809 +42,297 *Net sales do not include intersegment internal net sales or transfers Operating Income 2026 Forecast 2025 Results Change Change (%) 2026 Previous Forecast Change 2026 2H Forecast Change (YoY) Japan 60,500 64,094 (3,594) (5.6％) 69,900 (9,400) 33,641 (519) N.America 19,100 17,989 +1,110 +6.2% 11,300 +7,800 15,613 +7,960 Other 13,700 15,559 (1,859) (11.9%) 15,200 (1,500) 4,555 (2,039) Eliminations or Adjustments (3,300) (293) (3,006) ー (2,400) (900) (1,307) (2,073) Total 90,000 97,350 (7,350) (7.6％) 94,000 (4,000) 52,502 +3,328 Geographic Area Segments for FY2026 （ Jan - Dec) (Millions of yen)
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14/22 2026 Forecast 108.2 73.5 35.8 16.2 233.7 98% 2026 Unit:1000 Ton 1Q 2Q 1H Japan 23.1 26.4 49.5 N.America 18.8 17.3 36.1 Asia 8.6 9.3 17.9 Europe 3.9 4.1 8.1 Total 54.4 57.1 111.6 YoY 92% 96% 94% Bar graph values show tire production volume composition ratio by region Changes in Tire Production (New Rubber Volume) 7% 7% 7% 7% 7% 7% 15% 13% 15% 14% 16% 16% 29% 30% 32% 31% 35% 30% 49% 50% 46% 48% 42% 46% 0 30 60 2025 1Q 2025 2Q 2025 3Q 2025 4Q 2026 1Q 2026 2Q Japan N.America Asia Europe （Unit: 1,000 Tons） 2025 1Q 2Q 3Q 4Q Total 28.8 29.8 28.1 27.8 114.6 17.1 17.8 19.2 17.9 72.0 9.0 7.8 9.0 8.2 34.0 4.2 4.3 4.2 4.2 16.8 59.1 59.7 60.5 58.1 237.4 98％ 107% 103% 103% 103%
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15/22 2026 Forecast 111 92 99 101 87 104 100 Year-on-Year when the same period of the previous year = 100 Change in Tire Sales Quantity by Region （ YoY ） 2025 1Q 2Q 3Q 4Q Total 104 98 103 104 102 97 107 109 91 100 99 98 92 98 97 105 100 100 108 103 67 99 40 62 67 103 103 94 94 98 99 99 96 98 98 Europe 6% RE Japan 16% SE Asia 6% N.America 47% OE Total 18% Reference：Ratio in Tire Unit Sales Quantity by Region（YoY) （2025 Result） （%） 2026 1Q 2Q 1H OE Total 117 107 112 RE Japan 67 76 72 RE Overseas 85 90 88 N.America 94 95 95 Europe 48 61 55 SE Asia 90 95 93 Total 89 91 90
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16/22 2025 1Q 2Q 3Q 4Q Total (2.8) (2.6) (0.3) +1.1 (4.6) (0.3) +0.4 +2.2 +2.2 +4.5 +0.3 (0.1) (0.3) +0.2 +0.1 (2.8) (2.3) +1.7 +3.5 +0.0 2026 1Q 2Q 1H Natural Rubber +1.4 +0.7 +2.1 Petroleum Products +2.1 (0.8) +1.3 Other Raw Materials +0.4 (0.1) +0.3 Total +3.9 (0.2) +3.7 2026 Forecast (3.4) (8.4) (1.9) (13.7) 0 100 200 300 0 50 100 150 2020 Jan 2020 Jul 2021 Jan 2021 Jul 2022 Jan 2022 Jul 2023 Jan 2023 Jul 2024 Jan 2024 Jul 2025 Jan 2025 Jul 2026 Jan Dubai Crude Oil (left) Natural Rubber TSR#20 (right) （USC/kg）（USD/bbl） Price Changes in Major Raw Materials Change in Dubai Crude Oil and Natural Rubber TSR #20 Prices (SICOM) Price Changes & Impact of Raw Materials (Operating Income Basis) (Unit: Billions of Yen)
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17/22 30.8 35.1 35.6 18.9 38.6 2023年度 2024年度 2025年度 2026年度 1Q 2026年度（予想） 24.5 16.6 23.9 15.5 40.8 9.6 9.0 6.1 2.0 8.2 34.1 25.6 30.0 17.4 49.0 2023 2024 2025 2026 1H 2026 Plan Tire OtherLeft：Capital Investment Right：Depreciation 2023 2024 2025 2026 2026 Plan 1H Changes in Capital Investment and Depreciation Capital Investment and Depreciation Note) Figures for capital expenditure do not include right-of-use assets, whereas figures for depreciation do. （Unit: Billions of Yen）
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18/22 320.9 395.2 472.6 522.7 549.9 135.4 102.7 108.4 92.3 81.7 53.5% 61.2% 65.4% 69.4% 71.6% 0.0% 50.0% 0.0 500.0 2022YE 2023YE 2024YE 2025YE 2026 End of 1H Net Assets Interest-Bearing Debt Balance Capital Ratio 2022YE 2023YE 2024YE 2025YE 2026 End of 1H D/E Ratio 0.42 0.26 0.23 0.18 0.15 Net D/E Ratio 0.29 0.13 0.05 (0.05) (0.06) （Billions of yen） Changes in Interest - Bearing Debt Balance and Capital Ratio
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1．Financial Results for 2nd Quarter (1st Half) of FY2026 2．Financial Forecast for FY2026 3. Topics
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20/22 Impact of the Computer System Issue ① Shipments disrupted by initial system issue Higher production costs from reduced production (-1.9 billion yen) Domestic plants Domestic warehouses Customers ② Production adjusted due to inventory buildup → Shipment disruptions caused by the initial system issue in Japan have been resolved. We will work to catch up on production and bolster sales in 2026 2H and beyond. ⚫ Jan. 2026: The initial system issue in Japan disrupted shipments to the domestic market. ⚫ The resulting inventory buildup at domestic warehouses forced domestic plants to adjust production during 2026 1Q. ⚫ The shipment disruptions were resolved by the end of June ⇒ Efforts are currently underway to clear the remaining backorders. ⚫ A detailed assessment showed that the issue reduced operating income by 4.2 billion yen during the January-June period. Jan. 2026: Migrated to the new system Shipments reduced Figures in parentheses indicate the impact on operating income. Sales companies Lost opportunities from sales decline (-2.3 billion yen)
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21/22 Sustainability Management Progress Report Reduce GHG emissions throughout product lifecycle Promote responsible procurement Progress on key sustainability indicators Topics: Integrated Report 2026 published Key initiatives ⚫ 2025 renewable energy usage ratio: 91.9% (on a purchased energy basis) ⚫ Started procuring electricity for Kuwana Plant via off-site PPA in June 2026 ⚫ Value-creation stories centered around Medium-Term ’26 Plan Organizes value creation process, external environments, Medium-Term ’26 Plan strategy, and sustainability policies in an integrated manner, presenting the medium- to long-term growth strategies and approaches to enhancing corporate value. ⚫ Linking business and sustainability strategy Illustrates the competitive edge gained through technology, product branding, sales, production and supply strategies, lists KPIs for materiality targets, and Indicator 2026 1H 2030 Target Natural rubber traceability (district level) Processing initiatives 95% or above Sustainable supplier ratio 59%*3 85% or above Key initiatives ⚫ Reviewing sustainable supplier evaluation criteria, transitioning to objective and fact-based quantitative evaluations of environmental and social risk response. Indicator 2025 2030 Target Scope 1 & 2 emissions reduction (vs. 2019) 50.1％*1 50％ Scope 3 emissions reduction contribution per tire (vs. 2019) 11.9%*2 20％ *1 Third-party verified data *2 Average rolling resistance coefficient (RRC) reduction rate + Procurement process emissions reduction rate (both 2025 results). Supplier-specific emission intensity is used for the procurement process and CDP-ACS sector average emission intensity is applied for undisclosed suppliers. Company estimates. Not independently verified. *3 Based on Toyo Tire Group supplier evaluation criteria ⚫ Updating key ESG themes Reflects progress on key initiatives such as decarbonization, supply chains, natural capital, and governance. Presents TCFD-based risk and opportunity reassessment results for decarbonization. clearly indicates the connections between these strategies and non-financial considerations.
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22/22 New DELVEX M635, an all-weather tire for light trucks and buses ■ Enhanced wear resistance for superior durability under frequent stop-and-go driving. Engineered to maintain reliable performance across varying weather and road surface conditions. ■ For light-load driving, the central area of the tread surface is widened to stabilize road contact performance. Wear life improved by 14%* and heel-and-toe wear on the block surface reduced by 40%. ■ The tread pattern with sipes (narrow slits) maintains tread block rigidity yet enhances traction on wet roads and in light snow. ◼ OPEN COUNTRY R/T and PROXES CL1 SUV (a fuel-efficient tire for SUVs) won the highest rating in the SUV/4X4 Tire and Eco-friendly Tire categories, respectively. Awards Grand Prix in the PARTS OF THE YEAR 2026 1H from Minna-no Car Life, an automotive social media site 「OPEN COUNTRY」 Selected as original equipment for the All-New MAZDA CX-5 Crossover SUV ■ OPEN COUNTRY H/T selected for the new MAZDA CX-5, which went on sale in the North American market in March 2026. ■ Supporting the comfortable, confident driving dynamics that the all-new MAZDA CX-5 aims to deliver. (Launched in Sept. 2026) * Compared with our existing model, M634 Product Information 「MAZDA CX-5」 The above image of the vehicles is provided courtesy of Mazda Motor Corporation. Unauthorized copying and replication of this image are prohibited.
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23/22
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The forward-looking statements contained in these business outlooks and plans are based on information available at the current time and contain potential risks and uncertainties. Therefore, please keep in mind that actual results may, due to a variety of factors, differ from those expressed in the forward-looking statements.