Interim report
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Summary Report of Consolidated Business Performance for the Second Quarter of Fiscal Year 2026 ( January 1 , 2026 – December 31 , 2026 ) HYOGO , JAPAN - August 7 , 2026 - Toyo Tire Corporation ( " the Company ” ; President & CEO : Takashi Shimizu ) announces its consolidated business performance for the second quarter of fiscal year 2026 ( January 1 , 2026 through December 31 , 2026 ) as follows : Quantitative information concerning the quarterly financial results ( 1 ) Business Results Net Sales : Operating Income : Ordinary Income : Profit Attributable to Owners of Parent : ( 2 ) Results by Business Unit 284,190 million yen ( an increase of 779 million yen , or 0.3 % from the same period in FY2025 ) 37,497 million yen ( a decrease of 10,678 million yen , or 22.2 % from the same period in FY2025 ) 39,415 million yen ( a decrease of 4,315 million yen , or 9.9 % from the same period in FY2025 ) 29,436 million yen ( a decrease of 3,893 million yen , or 11.7 % from the same period in FY2025 ) The Tire Business Unit posted net sales of 260,058 million yen ( a decrease of 351 million yen , or 0.1 % from the same period in FY2025 ) and an operating income of 36,425 million yen ( a decrease of 10,659 million yen , or 22.6 % from the same period in FY2025 ) . The Automotive Parts Business Unit posted net sales of 24,132 million yen ( an increase of 1,131 million yen , or 4.9 % from the same period in FY2025 ) and an operating income of 1,075 million yen ( a decrease of 5 million yen , or 0.6 % from the same period in FY2025 ) . ( 3 ) Explanation of financial situation Total assets at the end of the second quarter of FY2026 of the consolidated accounting period were 768,188 million yen , an increase of 14,939 million yen compared to the end of the previous consolidated accounting period . Liabilities were 218,334 million yen , a decrease of 12,254 million yen compared to the end of the previous consolidated accounting period . Interest - bearing liabilities were 81,663 million yen , a decrease of 10,685 million yen compared to the end of the previous consolidated accounting period . Net assets as of the end of the second quarter of FY2026 of the consolidated accounting period were 549,853 million yen , an increase of 27,194 million yen compared to the end of the previous consolidated accounting period . As a result , the capital ratio increased by 2.2 points compared to the end of the previous consolidated accounting period to 71.6 % . 1
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2 Consolidated Balance Sheets (Millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and deposits 117,256 112,652 Notes and accounts receivable - trade 136,504 139,263 Merchandise and finished goods 92,036 103,043 Work in process 4,348 4,951 Raw materials and supplies 30,327 30,306 Other 29,469 29,183 Allowance for doubtful accounts (1,089) (1,181) Total current assets 408,854 418,219 Non-current assets Property, plant and equipment Buildings and structures, net 84,637 85,980 Machinery, equipment and vehicles, net 122,819 123,756 Other, net 73,224 75,920 Total property, plant and equipment 280,681 285,657 Intangible assets 23,645 23,413 Investments and other assets Investment securities 4,591 4,963 Other 35,589 36,045 Allowance for doubtful accounts (113) (110) Total investments and other assets 40,066 40,897 Total non-current assets 344,393 349,969 Total assets 753,248 768,188
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3 (Millions of yen) As of December 31, 2025 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 33,716 28,926 Current portion of bonds payable 5,000 － Short-term borrowings 13,419 23,215 Accounts payable - other 36,677 29,699 Income taxes payable 9,716 12,871 Provision for product compensation 300 290 Provision for loss on liquidation of subsidiaries and associates 2,325 2,020 Other provisions － 86 Other 44,797 52,075 Total current liabilities 145,953 149,184 Non-current liabilities Bonds payable 20,000 20,000 Long-term borrowings 31,327 18,183 Retirement benefit liability 3,157 3,160 Provision for product compensation 435 302 Other provisions 94 － Other 29,621 27,503 Total non-current liabilities 84,635 69,149 Total liabilities 230,588 218,334 Net assets Shareholders' equity Share capital 55,935 55,935 Capital surplus 54,255 54,340 Retained earnings 319,894 338,551 Treasury shares (104) (91) Total shareholders' equity 429,980 448,735 Accumulated other comprehensive income Valuation difference on available-for-sale securities 1,166 1,389 Deferred gains or losses on hedges (64) (136) Foreign currency translation adjustment 74,499 83,738 Remeasurements of defined benefit plans 17,077 16,127 Total accumulated other comprehensive income 92,679 101,118 Total net assets 522,659 549,853 Total liabilities and net assets 753,248 768,188
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4 Consolidated Statements of Income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Net sales 283,410 284,190 Cost of sales 168,457 173,307 Gross profit 114,952 110,882 Selling, general and administrative expenses 66,776 73,385 Operating profit 48,176 37,497 Non-operating income Interest income 704 732 Dividend income 134 147 Foreign exchange gains － 1,394 Share of profit of entities accounted for using equity method 28 17 Other 1,285 719 Total non-operating income 2,152 3,012 Non-operating expenses Interest expenses 595 269 Foreign exchange losses 4,342 － Other 1,659 824 Total non-operating expenses 6,598 1,094 Ordinary profit 43,730 39,415 Extraordinary income Gain on sale of non-current assets 1,038 269 Gain on sale of investment securities 2,493 41 Total extraordinary income 3,532 311 Extraordinary losses Loss on retirement of non-current assets 394 270 Impairment losses 103 210 Total extraordinary losses 497 480 Profit before income taxes 46,765 39,246 Income taxes 13,434 9,809 Profit 33,330 29,436 Profit attributable to owners of parent 33,330 29,436
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5 Consolidated Statements of comprehensive income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 33,330 29,436 Other comprehensive income Valuation difference on available-for-sale securities (959) 222 Deferred gains or losses on hedges 130 (71) Foreign currency translation adjustment (15,765) 9,140 Remeasurements of defined benefit plans, net of tax (633) (950) Share of other comprehensive income of entities accounted for using equity method (77) 98 Total other comprehensive income (17,306) 8,439 Comprehensive income 16,024 37,876 Comprehensive income attributable to Comprehensive income attributable to owners of parent 16,024 37,876