TOYO TIRE Corporation New Medium-Term Business Plan
“Mid-Term ’21 Plan”(Presentation scripts)
Table
Greetings everyone. My name is Takashi Shimizu, the President of Toyo Tire
Corporation.
I am pleased to share with you today our Mid-Term ’21 plan. In the past, we would
estimate the likely size of our company at the end of the next mid-term period, andbase our plan on that scenario. This time, we began by reaffirming our strengths andthe ideal state of our business, and confronting possible changes and challenges
unique to us. From there, we discussed what transformation was necessary for thecompany to reach a higher stage of development.
In the limited time available, I will provide you with key highlights of our new midterm business plan.

Page 2 : The TOYO TIRE Philosophy
One year ago, COVID-19 began its full-scale spread across the world. Since then, eachof us has had to live through this uncharted "life with Covid."
And we won’t be returning to that life before the pandemic. We must instead face thisirreversible paradigm shift and find a way to maintain and grow our business in asustainable manner. We do this by reaffirming a future vision for our company. That
includes our relationship with different stakeholders such as our employees.
In the U.S., we did not suspend our operations. Rather, we were designated an“essential business”, which allowed us to continue to do business. It made us realize
the critical role of the tire business there.
We included our Corporate Philosophy on the first slide of this presentation because
we want the world to know why we exist, and our plan to live up to those words.

Page 3 : Goals Under Mid-Term ’21 Plan
In 2019, we changed our corporate name to “TOYO TIRE”. At that time, we announced
a new business direction that reaffirms our commitment to the auto industry;
specifically automobile tires and parts.
We will leverage our strengths to grow even stronger. We turn to our advantage thethings we don’t have. Embracing change and driving progress. These are the threeessential points for our company.
They are also the ideas around which our Mid-Term ‘21 plan was designed to take us
through 2025. Those ideas will prepare us to respond to changes quickly and flexibly
through collaboration among our global organization.

Page 4 : 1. The Mid-Term ’17 Plan in Review (section slide)I will now review the results from our Mid-Term '17 plan covering the 2017~20
financial periods.

Page 5 : The Mid-Term ’17 Plan in Review (Net Sales & Operating Income)
The Mid-Term '17 plan established targets of 480.0 billion yen in consolidated net
sales and 60.0 billion yen in consolidated operating income. After carefulconsideration, we deferred parts of our production expansion plans. The mid-term
period also saw negative currency swings. Both events caused us to miss the plantargets.
During this period, we consolidated the DiverTech Business segment. We divested thechemical industrial products business and rigid polyurethane foam business toconcentrate on the auto parts business. Our future will be in the mobility sector, which
also encompasses the tire business.
2020 was the final year of Mid-Term '17. The pandemic created an adverse operating
environment as demand collapsed. We responded with agility and flexibility,
leveraging our unique strengths by promoting priority products, substantially reducing
inventory, and bolstering cash flow. These measures not only preserved our profits
but enabled us to increase year-over-year operating margins. This lays the groundworkfor us to now take the offensive.

Page 6 : The Mid-Term ’17 Plan in Review (Technology & Product Strategies)
As part of Mid-Term '17, we deployed a number of technology and product strategies.
In 2017, as if to anticipate the era of autonomous driving and electric vehicles, we
introduced “noair“, an air-less, maintenance-free concept tire. We fitted them to test
vehicles, and offered the public a ride.
Our highly original product development program rests on the twin pillars of“foundational material design technology”, and “high-efficiency, high-precision
simulation technology”. During Mid-Term '17, we made great strides in those areas
through the use of vast quantities of data. This accelerated the design development
process, and will enhance our ability to create good looking, high performing tires,
which is our core strength.
These unique technological advances allowed us to develop and launch a series ofinnovative, high value-added products.

Page 7 : The Mid-Term ’17 Plan in Review (Brand Strategy)
Throughout Mid-Term '17, we pursued a strategy of increasing our global brandpresence under the banner, “Boldly taking roads hitherto untraveled to carve out ourown path.” We wanted to embrace this frontier spirit, and in 2019, rolled out our new
brand statement: "Open Roads Await". Since last April, we added the global slogan,"Ignite your BLUE", to celebrate those whose inner passions burn with the intensity ofa blue flame.
In our primary markets, we fused together our branding and marketing efforts to pitch
TOYO TIRES’ unique world view. This included major sports team sponsorships,
showcasing customized SUVs and pick-up trucks fitted with our large-diameter tires,and supporting teams in rally events.

Page 8 : The Mid-Term ’17 Plan in Review (Sales and Market Strategy)
Next is a review of our Mid-Term ’17 sales and market strategies.
In North America, our single most important market, we launched in 2020 the longawaited Open Country A/T III light truck tire. Although local production was increased
substantially, it has not been enough, as we increased segment share to 5.3%, placing
us 7th and climbing.
In Japan, our SUV tire sales grew 20% from 2016, the result of expanding the OPEN
COUNTRY lineup, combined with strategic sales promotions. We also formed a tacticalsales unit dedicated to selling truck and bus tires as we prepare for further growth inthat segment.
In Europe, we announced a new manufacturing plant in Serbia. We also opened an
R&D center in Germany, laying the foundation to develop cutting-edge raw material
technology.
And in Asia, we completed phase II expansion of our Malaysian Plant. It now produces
tires to meet growing global demand. For our original equipment tire business, we did
not pursue volume, focusing instead on our stronghold in the SUV and light truck
segment.
All told, we achieved our sales mix goal, weighted towards SUV and light truck tires.
In North American, sales for that segment reached 38% by units and 56% by value of
our total sales, as we steadily captured the growing demand for large-diameter tires.

Page 9 : The Mid-Term ’17 Plan in Review (Supply Strategy)
For our supply strategy, we monitored the business climate, assessed our chances,and put plans into action. We first optimized our operations, designated product focus
for each plant, and made plans for a new facility based on sustainable growth.
In the U.S., we initiated phase V expansion, took the first step towards phase II
expansion in Malaysia, and increased truck and bus tire capacity at our China andJapanese Kuwana plants. Our supply chain is centered around our North American
market, which is our primary revenue source. They are configured to capture demandin each product segment.

Page 10 : The Mid-Term ’17 Plan in Review (DiverTech Business;
Corporate Infrastructure)
The DiverTech operation was originally formed as our non-tire business, making
rubber or polyurethane foam industrial products. Those businesses have been sold off,
leaving just the tire and auto parts businesses. We are now well-positioned to focus
and pursue growth in the mobility sector.
The auto parts business continues to struggle, affected by fixed pricing of legacy
products. We are actively reducing the deficit by leveraging our tire business innegotiating with OE customers, and through cost reduction efforts.
To ensure a prompt, objective decision-making system of governance, we havesteadily restructured our organization, establishing special committees, and adopting
and inculcating employees in our corporate philosophy.
Finally, in 2017, we replaced the vertically-aligned business silos that existed since thecompany’s founding with a flat structure organized by function. Each function is now
collaborating more and making decisions rapidly.

Page 11 : 2. The Business Environment (section slide)I will now explain our Mid-Term '21 plan beginning with our forecast for the company’s
future operating environment.

Page 12 : Macro Trends Amidst a Period of Unprecedented Turbulence
The pandemic has brought profound changes in consumer and business behavior. It
has forced a rebalancing of social, environmental, and economic interests. A widening
economic disparity has accelerated the populist movement. Such geopolitical trends
present important changes to the business environment.
In our primary markets of the U.S., Japan, and Europe, we expect everyone’s focus to
be on the economic recovery and sustainability.
I will next explain market trends in the automotive and tire business segments.

Page 13 : Market Trends in Automotive & Tire BusinessIn the U.S., we expect the share of registered electric and plug-in hybrid electricvehicles to grow as they capture a larger share of new vehicle sales. We also expect
SUV and light truck share of the market to continue to increase. Therefore, we believe
this tire segment, accounting for 60% of our current sales mix, has the potential togrow.
The U.S. tire market will continue to see tight supplies as punitive duties on China
imports remain, and anti-dumping duties on imports from four other Asian countries
are levied. Collectively, those imports account for 20% of U.S. demand.
In Japan, we predict a slow post-COVID recovery for the economy. Registered vehicles,
new vehicle production, and tire demand will all decline slightly, but market share of
popular SUVs and EVs can expect to increase.
A similar trend can be seen for Europe, except that total registered vehicles will start
to decline after 2025 as a result of tighter environmental regulations.

Page 14 : 3. Basic Policy for Mid-Term ’21 Plan (section slide)
Next, I will walk you through our new five-year business plan through 2025. We startwith our thought process and basic policies behind the Mid-Term '21 plan.

Page 15 : Mid-Term ‘21 Plan Inherits from Mid-Term ’17 Plan
In August 2019, we published our global strategy paper, “Next Stage in Our Growth
Strategy”. It is a roadmap that takes us through the great upheaval of the auto industry,
to that next stage. We will leverage the capital and business alliance with Mitsubishi
Corporation. We will harness our fundamental strengths: The expertise anduniqueness that we cultivated; the functional capabilities that we honed; and thecorporate governance and compliance framework that we transformed andreinforced. On this platform, the Mid-Term ’21 plan is constructed to allow us topursue our own unique course to reach our destination in 2025.

Page 16 : Mid-Term ‘21 Plan Key Performance Indicators
Our fiscal policy will be guided by financial indicators weighted towards efficiency, andwhich strikes a balance between growth and return, to take us to the next level.
Our reason for existence will be measured by the high “consolidated operating
margin”, to be achieved by increasing the sales mix of our priority products.
The resulting consolidated operating income target is 60 billion yen in the final yearof our mid-term plan. We will challenge ourselves to absolutely meet this goal by
executing our growth strategies. We will further our advantages, starting with ourstrong presence in North America.
During this Mid-Term ‘21, we will establish policies for capital investment, shareholder
return, and a benchmark ROE, promoting a balanced approach to profitability andefficiency.

Page 17 : 4. Growth Strategy (section slide)
We will now explore in detail the Mid-Term '21 plan for each of the following
categories:✓ Research & Development✓ Regional sales✓ Original equipment tires✓ Production and supply✓ Solution business initiatives

Page 18 : Growth Strategy (R&D)
I will begin with our Research and Development strategy.
During the last mid-term, we expanded our R&D base from Japan to North America
and Europe. These facilities are linked together to form a tripolar development system.
They will develop and reinforce critical differentiation technologies in the following
three areas: High performance design, customer-oriented product development, andnext-generation technology development.
High performance design is technology that simultaneously achieves multiple
performance requirements at a high level. We will enhance and refine our capability
in: tire structure design; material compounding; and evaluative technology to visualize
tire behavior. With this dual approach, we aim to further evolve and advance theperformance of our products.
Customer-oriented product development is the ability to timely realize uniqueproducts with strong consumer appeal. We first explore consumer expectations toaccurately stay a step ahead of the marketplace. We then leverage our AI-enabledsimulation technology, T-MODE, to quickly launch highly original products in North
America and beyond.
Our goal is to anticipate the future, and develop technology to meet it. We will
increase the use of sustainable materials to reduce our environmental impact, andcommercialize any unique solutions that are developed along the way.

Page 19 : Growth Strategy (R&D)
A carbon-neutral future will require different types of products. Through ourtechnology, we can realize solutions necessary for a sustainable mobility future. We
will challenge ourselves to develop the technology and commercialize products fornext-generation vehicles.
As we develop products for electric vehicles, we must consider the following four
factors: Attention to improving electric efficiency, not fuel economy; the lower noiselevels of the electric motor; increased torque; and increased vehicle weight resulting
from heavier battery mass. Applying our technology, we will develop tires that not
only satisfies the requirements of enhanced low rolling resistance, improved
treadwear, and noise abatement, but also distinguishes our product with spirited
performance and novel design characteristics.

Page 20 : Growth Strategy (North America)
I will now turn to our sales strategy for each region, beginning with North America,
our single most important market.
In North America, we will not only increase sales of our wide light truck tires, which
has an outstanding brand presence, but also aggressively increase sales of our truck
and bus tires, using the expanded production capacity at the Kuwana plant. We will
also harvest sales in new segments such as all-season tires. Enhancements andinvestments will be made in those differentiated product lines where our strengths lie.
Underpinning our business growth in North America is our sales and marketing
activities with a thorough focus on the market and users. We will continue toproactively invest our management resources to enhance our brand power throughdigital marketing, fan engagement, and other promotional activities designed toincrease sales.
With the U.S. holding company at its core, the local operations engage in: Uniqueproduct planning; product development at the local R&D center (one leg of the global
tripolar R&D system); producing quality tires using a unique manufacturing system;
and a fine-tuned sales operation; all of which will increase our enterprise value.

Page 21 : Growth Strategy (Europe, Japan, Asia)
In each of the European, Japanese and Asian markets, we plan to develop priority
products to suit local tastes.
In Europe, the start of our Serbia plant will give us a highly competitive supply source,
and the R&D center will develop distinctive products emphasizing performance. These
are the weapons we will deploy to strengthen our existing customer base, and to growvolume while shifting the sales mix towards performance-oriented priority products.
In Japan, we plan to launch high-performance products with an eye for growth
categories such as for SUVs, our highly desirable OPEN COUNTRY, and others thatcombine a quiet ride and long tread life.
At the same time, we will initiate our "bold hardware reorganization" and"revolutionary digitization" programs, drastically change the sales organization,
significantly reduce fixed costs, enhance sales capabilities with the use of digital tools,
and use these transformations to push the sales mix towards priority products.
In Asia, we will work to improve our brand position by expanding our sales networkwith region-specific products developed for our Malaysian factory. We will also
strengthen our digital marketing program through the appointment of brandambassadors.

Page 22 : Growth Strategy (Original Equipment Tires)
Next is our strategy for original equipment tires.
The core of our business, tires and auto parts, are indispensable for mobility. As such,it is our mission to contribute to the development of electric vehicles and next
generation mobility with our unique approach and business combination. The
resulting ripple effect will benefit the replacement tire business, expanding our sales
channels, providing us greater brand recognition, and a captive customer base,resulting in an upward profit spiral.
By developing original equipment tires and engaging in technology exchange with
auto manufacturers, we can innovate and enhance our capabilities by deploying
simulation and other technologies. Having early access to future vehicle trends will
also allow us to act in anticipation of next-generation mobility technology. We willcontinue to develop and propose new products by linking together the tire and autoparts businesses.

Page 23 : Growth Strategy (Production and Supply)
The next topic is our production and supply strategy.
Last month, we commenced additional production of wide light truck tires at our
newly expanded U.S. facility. In April 2022, our Serbian plant becomes operational. It
will use locally-sourced, cutting-edge materials and state-of-the-art equipment toproduce high-performance, priority products, distributing them from thisgeographically-advantageous location. Our goal is to achieve 30% lower costcompared with tires made at our Sendai plant, making the Serbian plant the lowest
cost facility in the Toyo Tire network. It will supply 2 million tires to North America and3 million within Europe.
Meanwhile, to optimize our supply chain, we recently announced the closure of ourSilverstone plant in Malaysia, which annually produces three million smaller diametersize tires. We will concentrate resources into our other Malaysia plant, enhancing its
function as one of our global supply hubs to support growing demand.
Our China plant gives us flexibility to quickly adapt to changing demand in the Chineseand Japanese markets. The Sendai plant in Japan will shift towards producing highvalue-added tires for the local and North American markets. We will persist in ourefforts to strengthen the production base and improve productivity by visualizing the
manufacturing processes and quality control data.

Page 24 : Solutions Business Initiatives
In the age of connected, autonomous, shared, electric vehicles (CASE), there will be
unparalleled demand for tire safety and efficiency.
To meet this need, we will roll out tire sensing technology for enhanced safety, andtread wear diagnostic technology for greater economic efficiency. Both will be
deployed through our unique solutions business.
The treadwear diagnostic technology is being developed through field trials in
conjunction with a transportation company affiliate of Mitsubishi Corporation. Our
goal is to be able to accurately predict the end of useful tread life. Once integrated
into our technology platform, this will be deployed as part of our fleet management
service.
The tire sensing technology will detect forces exerted on the tire in real-time. We haverefined the technology through field tests. From customer vehicles fitted with thesensor, we have gathered data to an unprecedented degree. The technology will be
developed to suit the needs of discerning customers and service conditions.
We will offer and deploy a variety of user-oriented solutions as we blend data
gathered through the tires with new elemental technology.

Page 25 : 5. Capital and Business Alliance with Mitsubishi Corporation (section slide)Two years have passed since we signed a capital and business alliance agreement with
Mitsubishi Corporation. I will now explain how we envision leveraging this allianceunder the Mid-Term '21 plan.

Page 26 : Effect of the Capital & Business Alliance with Mitsubishi Corporation
Our relationship with Mitsubishi Corporation is at once comprehensive andcollaborative. We share the same goal of shoring up Toyo Tire's managementfoundation, and increasing enterprise value. By 2020, this framework had generated
an additional 1.4 billion yen in operating income. We achieved this by ending ourexport outsourcing arrangement, which eliminated commissions. We also increased
tire sales within Japan by using Mitsubishi’s distribution network and functions, which
also helped reduce logistics and insurance expenses.
We also liquidated our three overseas joint venture sales companies with Mitsubishi,
and plan to liquidate the remaining two this year.
Please refer to the accompanying slides for details regarding our alliance programs,
which is expected to generate 10 billion yen in benefits. Our next joint focus will beon the Japanese and Asian markets, as we can quickly implement our plans andachieve profitability.
For the Japanese market, we have compiled a list of over a thousand prospective
industrial tire users, as we begin full-scale sales expansion. For other Asian markets,
we have increased opportunities for sales of SUV tires, and initiated expansion of sales
channels for new car and commercial tires by securing retail shelf space.
The alliance capital invested in production expansion is proceeding to plan, and thoseplants that have commenced production are contributing to our earnings. We areconfident the Serbian Plant will raise our operating income by at least 4.0 billion yen
once operations begin as scheduled.
Last year, our credit rating increased to an “A” rating. This is attributable to: The steadyprogress in replacing the seismic isolation rubber products in affected buildings;
strong and resilient earnings; and the capital contribution which put the company ona strong financial footing. This vote of confidence helped us keep our feet on the
ground through the pandemic.
Mitsubishi has also supported us by sending twenty-four of their employees to workon key projects as core members. By working with our employees, they helped solidify
our management base.
The 10 billion yen generated from the results of the alliance will be included in our
profit target for fiscal 2025, as we work to achieve the overall profit goals.

Page 27 : 6. Creating Management Foundation to Support Sustainable Growth(section slide)
Next, I would like to talk about our new management foundation.

Page 28 : Creating Management Foundation to Support Sustainable Growth
The new focus for our management is to think from a long-term global perspective;
to lead the integration of business and value creation. As we solidify our financial
position, we will forge ahead with the three imperatives of digital innovation,
sustainability, and human resource development.
The first imperative is digital innovation. This will be one of the foundations forincreasing profitability, and we will implement the necessary infrastructure to realize
this. Specifically, we will upgrade our enterprise resource planning (ERP) system tobetter manage resources and risks, accelerate business processes, and strengthendata governance globally.
The second imperative is sustainability. We are all responsible for the development ofa sustainable society. Together with our supply chain partners, we will makesustainability and ESG a part of our management culture. I will chair a special
committee to systematically and with integrity address future risks based upon acorrect understanding of the environment, while also finding solutions to social issues
and creating value through our business activities.
The third imperative is human resources development. We will be introducing a new
merit rating and human resources training system. It is designed to raise job
satisfaction, and attract individuals with diverse abilities. We will optimize the mix of
personnel and recruit individuals with specific skill sets.
Our business activities and management base is supported by a financial foundation.
To make our company more efficient and resilient to changes in the businessenvironment, we will increase our focus on asset efficiency and cash flow. With arobust financial foundation, we can withstand any business climate, and realize
sustainable growth. To build that foundation, we will strengthen our capacity togenerate cash on a global basis, and shorten the cash conversion cycle. During the
Mid-Term '21 period, our goal is to achieve an ROE of 12% or higher, thereby
increasing our enterprise value.

Page 29 : Role of Digital Transformation (DX) to Streamline the Management
Foundation
We have begun our digital transformation across three layers. This April, we will
elevate the digital task force from division level to a headquarters function. This will
strengthen interdivisional cooperation, and engage everyone on a company-wide level.
The first layer of strengthening the management foundation has already begun.
Starting with infrastructure development, we shift to data-driven management, which
accelerates operational efficiency. That takes us to the second layer, where we
improve our profitability.
For R&D and product development, we will make greater use of data to, optimize
product commercialization as part of life-cycle management, increase productivity on
the shop floor, manage and optimize global inventory, and pursue sales strategies anddeploy priority products following detailed data analysis. We will use these digitalstrategies to support a growth strategy centered on manufacture of customeroriented products and high margin business.

Page 30 : 7. Investment Plan and Shareholder Return (section slide)My last topic will cover our approach to investment planning and shareholder returns.

Page 31 : Investment Plan and Shareholder ReturnOur investment planning and capital allocation policy is grounded on financial
discipline and reinforcing our financial foundation. We do this by using capitalefficiently and bolstering the balance sheet. Specifically, we use operating cash flow
and capital funding (as necessary) generated during the five-year mid-term to cover
our needs for strategic capital allocation, investments (including growth investments),
and shareholder returns.
Regarding shareholder returns, while maintaining the principle of steady dividend
payouts, we provide shareholder returns by achieving business results every term.
Our plan anticipates a dividend payout ratio of over 30% during the mid-term period.
We intend to realize shareholder returns that are stable and tied to our performanceby linking the ratio to our profitability, adjusted for non-recurring and special profits
and losses included in net income.

Closing
The global spread of the new coronavirus has drastically changed the landscape, andeven now, we must remain vigilant to the threat while sustaining our business
operations. While the speed of change has been fierce, the future remains uncertain,
and during such times, we must take careful steps, building up strength, and making
progress a step at a time.
This Mid-Term ’21 plan is designed to guide our growth, not by chasing after quantity,
but through pursuit of quality. Instead of “newer” and “bigger”, we will make full useof what we have and grow it, while taking necessary steps to rebuild and reorganize,
incorporating change, and elevating the foundation.
Our goal for this company is to promote group strength and to become a more
resilient organization, capable of drawing on our unique advantages.
I now invite you to share with us your various expectations and comments.
Thank you for listening.

(Announced dated February 25, 2021
Presenter : Takashi Shimizu, President and CEO)