Management Policy

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Optimizing Our Business Portfolio Through Selection & Concentration of Existing Lines of Business in a Step Toward Living Up to Our Philosophy

2023 marks the first year of our New Mid-Term Plan.
Between now and 2025, the Sumitomo Rubber Group will be pushing ahead with major structural reforms with an eye toward “Selection & Concentration of Our Existing Lines of Business” based on our ongoing efforts to “Enhance Our Organizational Framework” and “Reinforce Our Foundation for Profitability” as part of our groupwide “Project to Reinforce the Foundations of Our Business” as well as new efforts to update our core systems in order to realize DX Management. Through this process, we will be “Laying Groundwork for Growing Lines of Business” while “Sowing the Seeds for a Brighter Future.”Then, from 2026 onward, we will be “Practicing DX Management,” “Optimizing Our Business Portfolio” and “Expanding Growing Lines of Business” as we move ever closer to “Living Up to Our Philosophy.”

◆Overview of Our New Mid-Term Plan


◆Financial Targets


◆Presentation Materials Introducing Our New Mid-Term Plan (PDF)
February 14, 2023
New Mid-Term Plan Explanatory Materials (PDF 5,575KB)

Towards Realization of Management that is Conscious of Capital Costs and Stock Prices

The following are the measures taken to achieve management that is conscious of capital costs and stock prices.

As a result of these efforts, we aim to achieve a business profit rate of 7%, ROE (return on equity) of 10%, D/E ratio (debt-to-equity ratio) of 0.6, and ROIC (return on invested capital) of 6% by 2027.
We will realize PBR 1 x or more by raising the bar for profitability of capital.

We consider the return of gains to shareholders to be a matter deserving of the utmost priority. Accordingly, our basic policy is to ensure a long-term, stable stream of shareholder returns based on comprehensive consideration of dividend payout ratios, performance prospects, retained earnings levels and other such indicators on a consolidated basis.

Long-Term Sustainability Policy

Through the promotion of ESG Management, the Sumitomo Rubber Group is actively working to contribute to the solution of various environmental and social issues toward the creation of a more sustainable society throughout all of our business activities.
In light of the accelerating impact of climate change and consequent rapid push toward carbon neutrality as well as many other major recent developments affecting the most pressing issues that our global society faces today, the Sumitomo Rubber Group set forth our “Driving Our Future Challenge 2050” Long-Term Sustainability Policy in 2021 with the dual aims of living up to Our Philosophy and ensuring sustainable growth not only for our group but also for society as a whole.
Our “Driving Our Future Challenge 2050” sets various Challenge Target Themes so that we may actively work to contribute to the solution of various societal issues in three key areas: “Environment,” “Society” and “Governance.” Moving forward, we will continue working to make sure and steady progress on specific Action Plans toward achieving these challenges.

August 5, 2021
Long-Term Sustainability Policy – “Driving Our Future Challenge 2050” (PDF 6,241.7KB)