Management Policy

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.”

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.