2020.2.13

Our New Mid-Term Plan

Table of Contents

1. Review of VISION 2020

2. Our New Mid-Term Plan

3. Value Drivers

1

① VISION 2020 Overview

② The Challenges of New Markets

③ Insatiable Drive for Innovation

④ Entering New Business Fields

⑤ Business Performance Trends

① Financial Targets

② Outline of Major Points

① Developing & Promoting Sales of Advanced Products

② Creating New Value

③ Promoting ESG Management

2

直近の2020年見通し(公表値)売上高： ●●●●億円事業利益： ●●●億円

Expand Our Sales Revenues & Business Profits in Overseas Markets toBecome a True Global Player

World’s Best Value

New Challenges

No. 1 Profitability in Our IndustryWorld’s Best Onsite Operational Abilities,R&D Capabilities and Technical Skills

3 Growth EnginesThe Challenges of

New MarketsInsatiable Drive for

InnovationEntering New

Business Fields

2020

1. Review of VISION 2020① VISION 2020 Overview

Targets for 2020Sales Revenues:Business Profit:

1 Trillion JPY100 Billion JPY

3

Expanding Our Global Network of Production & Sales Bases

1. Review of VISION 2020 ② The Challenges of New Markets

Start of Operations atHunan Factory + SalesExpansion in China

Start of Operations atBrazil Factory + Sales Expansion in Americas

Start of Operations at Turkey Factory, Bolstering Production for EU

UK Sales Company(Acquired 2017)

India Sales Company(Established 2012)

Australia Sales Company(Established 2014)

Hunan, China Factory(Started 2012)

South Africa Factory(Acquired 2013)

Turkey Factory(Started 2015)

USA Factory(Acquired 2015)

Brazil Factory(Started 2013)

Establishment of SalesCompany in India

Establishment ofSales Company in Australia

Acquisition of Sales Company in UK

2012 2013 2015 20172014Dissolution of Alliance with Goodyear

Acquisition of Factoryin South Africa

Acquisition of Factory in USA

Taking Full Advantage of Our Technical Strengths to Introduce Innovative New Products

41. Review of VISION 2020③ Insatiable Drive for Innovation

Development & Launch of 100% Fossil Resource-Free Tires

ADVANCED 4D NANO DESIGNNew Materials Development Technology

Releasing New Products Featuring SMART TYRE CONCEPT Technologies

ENASAVE 100 – Tires Made from All-Natural ResourcesWhile Completely Free of Petroleum-Based Resources

ENASAVE NEXT II – Fuel-Efficient Tires Featuring Balanced Performance in Terms of Both Rolling Resistance & Wet Grip

ENASAVE NEXT III – Fuel-Efficient Tires Featuring 50% Less Decline in Wet Grip Performance Over Time

51. Review of VISION 2020④ Entering New Business Fields

EU &Americas

Asia

Japan

Other

Expanding Our Business Supplying OE Tires to Overseas Automakers

Taking Advantage of the Opportunities Arising from the Dissolution of Our Alliance to Develop & Expand Our Business in Europe & North America

OE Tire Sales Volume Trends

37％Increase

2012 2019

61. Review of VISION 2020④ Entering New Business Fields

Expanding Our Vibration Control Business

■Increasing Sales of MIRAIE(Seismic Control Units for Detached Housing)

■Protecting Historic Structures

Expanding Our Medical Rubber Products Business in Japan & Overseas

EU

Japan

Vibration Control Business Sales Trends

Medical Rubber Products Business Sales Trends

192％Increase

219％Increase

Kumamoto Castle

Factory in Switzerland

Factory in Slovenia

2012 2019 2012 2019

■Increasing Sales in Japan■Expanding Our Business in Europe

with Acquisition of Lonstroff AG

MIRAIE

Japanese Accounting Standards ＩＦＲＳ

71. Review of VISION 2020⑤ Business Performance Trends

Sales Increased Thanks to Overseas Business ExpansionEven as Profits Fell Short of Our Targets

＜Major Factors Behind Profit Shortfall＞■Unexpected Currency Depreciation in Developing Countries ■Slowing Sales Due to Worsening Market Conditions in China & Mideast■Rapid Increase in Fixed Expenses Coinciding with Expansion at Factories in Brazil & Turkey to Increase Production Capacity■Delays in Earning Returns on Prior Investments Due to Production Issues at Factories in USA & South Africa

2012 2013 2014 2015 2016 2017 2018 2019 2020

7,1027,806

8,376 8,4877,567

8,779 8,942 8,933 9,10010,000

697771

863771 749

670607

539 550

9.8%

9.9%10.3%

9.1% 9.9%

7.6%6.8%

6.0% 6.0%

Sales / Revenues(Unit: 100M JPY)

Operating / Business

Profit(Unit: 100M JPY)

1,00010.0%

(Projected) (Target)Operating Profit (Japanese Standard) / Business Profit (IFRS)Sales (Japanese Standard) / Revenues (IFRS)

10,000

8,000

6,000

4,000

2,000

0

1,000

800

600

400

200

0

1,200

82. Our New Mid-Term Plan① Financial Targets

Target Indices Target Vision for 2025 Performance

Growth Potential Sales Revenues At Least

1 Trillion JPY

Profit Potential Business Profit At Least

100 Billion JPY

Return on Investment

PotentialROE At Least

10％

Financial Soundness D/E Ratio No More Than

0.5[Premises] Growth in Global Tire Demand: Around 2% per Year

Exchange Rates: 1 USD = 105 JPY 1 EUR = 120 JPY

2. Our New Mid-Term Plan① Financial Targets (Growth Image) 9

Business Profit

Sales Revenues

100Billion

JPY

1 Trillion JPY

Growth Centered on Japan/Asia

Global Business

Expansion

2020

20142012

2025

Sales Revenues > 1 Trillion JPY Business Profit > 100 Billion JPYROE > 10%D/E Ratio < 0.5

2. Our New Mid-Term Plan② Outline of Major Points 10

Maximizing Results from Our Global Infrastructure

Developing & Promoting Sales of Advanced Products

Creating New Value

Promoting ESG Management

Value Drivers

2020 2025

Efforts to Strengthen Our Organizational Framework

Efforts to CreateNew Profits

Groupwide Project to Reinforce the Foundations of Our Business

“Be the Change”

Further Enhancing Our

Economic & Societal Value

The Challenges of New Markets

Entering New Business Fields

Insatiable Drive for Innovation

113. Value Driver① Developing & Promoting Sales of Advanced Products (Tire Business)

Sales

Promoting Sales of Advanced Tires Globally

■Increasing OE Fitment for Luxury Vehicles■Striving for Industry-Beating Sales Growth in Major

Markets of Europe, North America, Asia, Etc.Advanced Tires Sales Plan

(Unit Sales)

2019 2025

Over 150％Increase

SUV TiresLarger Tire Sizes

12

Development

Taking Advantage of Technical Centers in Japan, USA & Europeto Advance Second-to-None Technologies

Developing Products to Respond to Local Market Needs & Ever Higher Performance Demands

Japan

USAEurope

■High-Speed Steering Stability■Wet Grip Performance

■Fuel Efficiency ■Quiet Running ■Long Life Performance■Road Handling

3. Value Driver① Developing & Promoting Sales of Advanced Products (Tire Business)

Augmenting Our Advanced Tire Supply Capacity

Achieving Stable Production at Our Factories

in USA & South Africa

Increasing Capacity at Our Factories in USA & Turkey with

a Focus on Advanced Tires

Increasing Output of Advanced Tires at Our

Factories in Japan & Asia

13

South Africa Factory Turkey Factory

Manufacturing

Advanced Tires

3. Value Driver① Developing & Promoting Sales of Advanced Products (Tire Business)

14

Manufacturing

Digital Technologies (AI, IoT, Etc.)

Smart Factory

Equipment Automation

Responding to the Various Issues Present on the Production Floor

Pushing Forward with a New Production System ConceptToward Achieving Smart Factories

High-Quality Products

High-Quality Products

Efficient Production

Efficient Production

Labor SavingLabor SavingLower

Environmental Impact

Lower Environmental

Impact

3. Value Driver① Developing & Promoting Sales of Advanced Products (Tire Business)

Expanding Our Sports Business Globally

15

Golf Gear (Balls, Clubs) Global Market Breakdown by Region

(In-House Estimate)

North America

Japan

Europe

Other

Increasing Sales of Golf Balls & Clubs in the World’s Largest Golf Market: North America

■Taking Advantage of Our Development Bases in Japan & USA

■Introducing Top-Notch Products Incorporating Proprietary Technologies

3. Value Driver① Developing & Promoting Sales of Advanced Products (Sports Business)

16

※ATP (Association of Tennis Professionals): Men’s Pro Tennis Federation

Expanding Our Sports Business Globally

Expanding Our Racket Sports Business (Focusing on Tennis)

Increasing Sales of Tennis Balls in Europe & North America

2019 2025

Tennis Ball Sales Plan(Sales Value Basis)

Taking Advantage of Tennis Racket Technology to Develop Unique Products

Squash

PadelBadminton

Accelerating Expansion into Squash & Badminton, Etc.

Australian Open

DUNLOP ATP※

3. Value Driver① Developing & Promoting Sales of Advanced Products (Sports Business)

Over 130％Increase

Vibration Control Business

17

Increasing Sales of MIRAIESeismic Control Units for Detached Housing

Increasing Sales of Vibration Control Devices for Buildings with a Focus on Southeast Asia

Vibration Control Business Sales Plan

(Sales Value Basis)

Japan

Overseas

2019 2025

Over 160％Increase

3. Value Driver① Developing & Promoting Sales of Advanced Products (Industrial Products Business)

Medical Rubber Products Business

18

■Medical Rubber Products Business Transferred to Key EU Market to Approach & Increase Sales to Major European Pharmaceutical Companies

Medical Rubber Products Global Market Breakdown by Region

(In-House Estimate)

Europe

OtherJapan

Switzerland

Slovenia

■Promoting Sales of Advanced Products■Taking Advantage of Our Factories in Switzerland & Slovenia

3. Value Driver① Developing & Promoting Sales of Advanced Products (Industrial Products Business)

193. Value Driver② Creating New Value

CASECASE

MaaSMaaS

ECO

Comfort

Convenience

Safe & Sound

Core TechnologiesCore Technologies

Development Concept for Tires & Peripheral Services

Realizing Products & Services

ENASAVETechnology

SafetyTechnology

Creating the Types of Value Sought in Tires by a New Mobility Society While Striving for Further Advancement

Creating Economic & Societal Value

Smart Tires Pressure Monitoring Service,Maintenance Support Service

Fuel Efficiency Technology,Shift to Sustainable Raw Materials

Usage

Production

Transport

Raw Materials

Recycling

Types of Value Sought in Tires by New Mobility Society

20

Tires Compatible with Autonomous Driving

Tires Providing Solutions for Safety & Peace of Mind

Tire Incorporating Life Cycle Assessment Thinking

SENSING COREPerformance Sustaining Technology

Collaboration with Other Companies Developing Tires with Reduced Environmental Impact

3. Value Driver② Creating New Value

Pressure/Temperature/Location Data

Cloud

Alert

Regular Maintenance

Vehicle (Driver) VehicleManager

21

Enhancing Brand Value

CASECASE

MaaSMaaS

3. Value Driver② Creating New Value

ECO

Comfort

Convenience

Safe & Sound

Core TechnologiesCore Technologies

Development Concept for Tires & Peripheral Services

Realizing Products & ServicesENASAVE

TechnologySafety

Technology

Creating Economic & Societal Value

22

Contributing to the Achievement of SDGs

～Toward Realizing a Sustainable Society～

Efforts to EnhanceEconomic Value

Efforts to EnhanceSocietal Value

3. Value Driver③ Promoting ESG Management

(Environment, Social, Governance)

Sustainable Growth & Value Creation

Economic Value

Societal Value

Sumitomo Business Spirit“Sumitomo’s business activities must benefit not only

Sumitomo itself, but also the nation and society at large.”

ESG

Basic CSR Philosophy

Through our GENKI Activities for the environment and for society, the Sumitomo Rubber Group aims to contribute to the realization of a sustainable society as a corporate group that has earned and continues to maintain the trust of society at large.

CSR Guidelines

❶ Helping to Combat Global Warming through Forest Building➋ Community Exchange through Tree Planting Activities➌ Preserving BiodiversityGreen

➍ Building a Low-Carbon Society❺ Creating a Recycling-Oriented Society❻ Promoting Management of Environmentally Harmful Materials❼ Promoting Global Environmental ManagementEcology

❽ Developing Environmentally Friendly Products❾ Pursuing Greater “Safety & Comfort,” “Value” & “Quality”Next

❿ Cultivating Talent & Improving Morale⓫ Creating Safe & Worker-Friendly Workplaces ⓬ Promoting Work/Life Balance ⓭ Promoting Diversity⓮ Upholding Human RightsKindness

Integrity⓯ Strengthening Corporate Governance ⓰ Thoroughgoing Compliance⓱ Promoting Dialog with Stakeholders ⓲ Social Contribution Activities⓳ Supply Chain Management

23

GENKI

3. Value Driver③ Promoting ESG Management

G reen Ecology Next Kindness Integrity

Efforts to Protect Endangered Species

(Giant Purple Butterfly)

Team ENASAVEFuture Project/Green Project

Global Environmental Management Central Committee

Drainage Water Recycling System(Turkey Factory)

Solar Power System(Zhongshan, China Factory)

GYROBLADE Airless Tires

SENSING CORE

ENASAVE 100 – 100% Fossil Resource-Free Tires

L-Star Mark for Promoting Greater Participation by

Women in the Workforce

CSR Fund

Nationwide DUNLOP Free Tire Safety Inspections

SNR Policy(Sustainable Natural Rubber)

24

“GENKI Forest” Tree Planting Activities

3. Value Driver③ Promoting ESG Management

Kurumin Mark for Supporting Working Parents

Outstanding Company for Promoting Health &

Productivity Management

Sports Business

Underlying

Measures

Doing Our Part to Achieve SDGs●SNR Policy

(Sustainable Natural Rubber)

Working Toward Achieving SDGsThroughout Our Business Activities

・Instilling the Sumitomo Business Spirit・Cultivating Global Talent・Promoting Work Style Reform・Promoting Health & Productivity

Governance,Cultivating Talent,Work Environment

25

●Developing Technologies to ReduceClub Weight & Improve Rebound

●Durable Tennis Balls

●Preventive Care Services

Tire Business●SMART TYRE CONCEPT

CSR Activities●Nationwide Tire Safety Inspections

●Joint Projects with UNESCO

●CSR Fund

Industrial Products Business

●MIRAIE Seismic Control Units

●Medical Rubber Products

Common Throughout●Setting Greenhouse Gas Emissions

Reduction Targets Toward Full Participation in the SBT Initiative

3. Value Driver③ Promoting ESG Management

17 Goals for Changing the World

26Outline of Our New Mid-Term Plan

Maximizing Results from Our Global Infrastructure

Developing & Promoting Sales of Advanced Products

Creating New Value

Promoting ESG Management

Value Drivers

2020 2025

Efforts to Strengthen Our Organizational Framework

Efforts to CreateNew Profits

Groupwide Project to Reinforce the Foundations of Our Business

“Be the Change”

Further Enhancing Our

Economic & Societal Value

The Challenges of New Markets

Entering New Business Fields

Insatiable Drive for Innovation

27