Introduction

Our Philosophy
Philosophy (Defined in January 2017)
Company Philosophy

We will endeavor to continuously
improve our products, and create value
for everyone who we work with.

Our Mission

To create excitement and surprise with our products thatexceed customer expectations and enriches society.

The highest-order concept in the
Company philosophy framework
The founding spirit we maintainand pass on to the future
Our promise to society and toourselves

Company
Philosophy

Our Mission

Our Vision

Our Vision
Our goal is to be a company that:- Stays one step ahead of the future through constant technological innovation;- Drives entrepreneurial and creative spirit through a progressive culture; and- Shares in the enjoyment felt by everyone involved in our activities.

The vision of how we want our Company
to be in order to keep our promise tosociety (=our mission)

The principles each of us value that guideour mission and promise and make ourvision a reality

Our Fundamental Values:“The TOYO WAY”

Our Fundamental Values: “The TOYO WAY”
Fairness

Be fair and selfless in one’s actions to benefit society.

Pride

Take pride in one’s self, work and company, and to persevere.

Initiative

Show initiative in all matters, and take ownership of one’s actions.

Appreciation Demonstrate sincere compassion and appreciation for people andsociety.
Solidarity

3

Open Roads Await

Continuously advance creativity and innovation by working
together to mobilize our corporate knowledge and capabilities.

TOYO TIRE Integrated Report 2024

TOYO TIRE Integrated Report 2024

4

Introduction

Our Philosophy

Our Philosophy and Sustainability

Our Philosophy was published in 2017, reviewing the old Philosophy statements we had up until then. This change wasprompted by the issue of data fabrication that came to light in 2015 concerning the seismic isolation rubber business andanti-vibration rubber business. As the Company faced this existential crisis in 2016, the management team responded to theneed to take another, serious look at our social mission and responsibility so that we can reemerge as a company that societyneeds and relies on, and decided, as the first step, to reform the company culture and realign the values shared by all officers
and employees by reviewing and reconstructing our Philosophy.
The guiding principle of the company-wide project was to approach the task not merely from the perspective of
implementing a root-and-branch reform of the organizational culture that led to the problem, but also from the perspective of
how a global business must act and behave. Under this guiding principle, we discussed and debated three key questions:“what values do our colleagues hold as important through work?”; “what values have we come to learn as important in view ofthe scandals we have gone through?”; and “what values do we want to hold on to as important now and in the future?” Thecommon values distilled from the dialogue were put together to formulate our new Philosophy statements.

At work,
what values do ourcolleagues hold asimportant at work?

In view of the scandals,

Now and in the future,what values have we cometo learn as important?

what values do we want tohold on to as important?

Words

Words

When we launched the Medium-Term ’21 Plan, we made clear that our purpose as a company was to make our Philosophy areality, and that the management plan was a means of achieving it.
When we started working on the shift toward sustainability management presented in the Medium-Term ’21 Plan, thisshared understanding provided a basis for our discussions of policies to promote sustainability and of the material issues for
the Company, enabling us to keep to the essence of the ideas contained in the Philosophy statements such as contributing to
the enrichment of society through our business and serving and caring for our stakeholders. One of our key focuses was toensure that the way we viewed and considered was always connected to the Philosophy so that we stayed true to ouruniqueness, and through four months of these discussions, we identified our material issues. We strive to embody our
Philosophy through the efforts to address these material issues.
Our Mission

Material issues

To create excitement and surprise with our products thatexceed customer expectations and enriches society.

❶ Help create a society of sustainable mobility

Our Vision❸ and job satisfaction

Support diverse talent with motivating challenges

Our goal is to be a company that:- Stays one step ahead of the future through constanttechnological innovation;

Words- Drives entrepreneurial and creative spirit through a
progressive culture; and- Shares in the enjoyment felt by everyone involved in
our activities.

Shared philosophy❷ Support the enjoyment of mobility for all

Continue innovating next-generation mobility❹ technology❺ Pursue decarbonization in all corporate activities❻ Promote supply chain sustainability
Ensure the fundamentals of manufacturing: quality❼ and safety→ See p.23-24 for details of material issued.

The Spirit That Underpins Our Company Philosophy
We will endeavor to continuously improve our products, andcreate value for everyone who we work with.
Our Company Philosophy was established by the founding president, Rikimatsu Tomihisa, in September 1950 to serve as aclear statement of his management philosophy. This short statement reflects the noble spirit that he believed business people
should aspire to in a time when Japan’s economy was rising out of the post-war period of rebuilding to a phase of rapid growthdubbed the Japanese economic miracle. However, this spirit that underlies our Company Philosophy is not an outdated ideathat is relevant only to manufacturing in times of material scarcity. Times may have changed and our business environmenttransformed, but the perspectives and insights contained in these words still ring true today. What materials do we use to
make our products? How do we make them? What value do we provide to the customers who pay us? We believe that wemust continue exploring these questions as we respond to the demands of our times and look to the future. The principle
behind the Company Philosophy, that we must sell valuable products at the right prices, is the spring from which our value
creation process flows.
For this reason, we place our Company Philosophy at the top of our Philosophy statements as the spirit that we should
always maintain and pass on into the future as we engage in our work.
[The spirit that underpins our Company Philosophy]
Industry progresses steadily day by day and never rests.
We must understand the importance of our work welland make progress every day.
We must research, create and be ingenious, always
determined that we will be better today than yesterday.
Abundance of high-quality materials may make it easierto produce good products, but they are not always
available, and knowledge and skills vary also fromperson to person.
We must start with the understanding that there are too
many change factors to have stability, and be relentless

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TOYO TIRE Integrated Report 2024

in our pursuit of improvement in order to produce good,balanced products consistently.
Our motto must be to sell valuable products at the rightprices, and we must above all refrain from seeking to profiteer
to the detriment of people.
Consumers do not just mean customers; the next process atwork is also a consumer.
Everyone in a company is a necessary person. Conversely,
every person has an important responsibility.
Everyone must do their very best at work.

Instilling the Philosophy
Since the Philosophy was defined, we have continuously been implementing a variety of initiatives to raise the awareness andunderstanding of it across our workforce.
In Japan, the Philosophy is incorporated in our internal training program, including case workshops to promote theunderstanding of the importance of embedding visions and strategies that are linked to the Philosophy in workplaces, andgroup-based workshops to share creative ideas to promote the Philosophy within each organization. At our international sites,
the Philosophy is included in the e-learning course on sustainability to raise awareness. The Philosophy statements are framed
and hung on the wall of meeting rooms and visitor reception rooms at each site as a reminder to reflect on at moments ofuncertainty in the course of work and renew our commitment to customers.
Our human resources management system clarifies what is expected of each role at each level and one of the
expectations is “to embody and instill the Philosophy.” By ensuring that the evaluation and career progression of employees
are based not only on their performance in achieving targets but also on their ways of “thinking and acting” through whichthose achievements were made, we nurture a pool of talents that not only understand the Philosophy as knowledge but
embody it in their performance of tasks and running of departments.

VOICE

Comments of sustainability e-learning participants on the Philosophy

America

EuropeAsia

I like our Philosophy, and I agree in
giving the society as much value as
we can give with our product. I
guess is implicit in the idea, and, inmy opinion, honoring the workers or
employees that make the mission
be successful would help to betterown the mission.

Our philosophy will help us to turnToyo into a sustainable company. The
implementation of the philosophy willchange the thinking in the company
and also increase the appreciation of
the company by third parties (society,employees, customers, suppliers).

I like the Toyo Tire Group Fundamental Values:
The Toyo Way. Always treat our company as
our second home by working together as ateam and showing initiatives in all matters. By
supporting each other can create continuity inbusiness and foremost employee loves andenjoy coming to work every day.

TOYO TIRE Integrated Report 2024

6

Introduction

Growth Trajectory

Operations & management

The Toyo Tire Group can trace its roots back to 1945, a time of unprecedented disarray around the end of World War II.
Since then, we have experienced a period of high economic growth and the bubble economy, and we have overcome
recessions, continuously delivering a multitude of values, including “safety,” “the joy of driving” and “a society ofsustainable mobility,” to the world by expanding globally while adapting to the diversifying automobile market.

1945-1970:
Founding and groundwork for growth

1971-2003:
Diversification and globalization

In August 1945, Toyo Rubber Industrial, which was established anddeveloped by Toyo Boseki (currently, Toyobo) in order to develop therubber industry, merged with Hirano Rubber Manufacturing, acompany whose operations Toyo Boseki had invested in andstrengthened, resulting in the establishment of Toyo Tire & RubberCo., Ltd. Both predecessor companies’ main factories had been
severely damaged in air raids and our history started with rebuilding
the devastated business environment. Since our founding we have
kept technology in our sights, and in 1946 we established adepartment to develop elemental technologies, the precursor to theCentral Research Center, as well as the Toyo Institute of Rubber,
Industry and Technology. In 1950, after wartime restrictions werelifted, we began producing rubber products, aiming to make theleap to a general rubber company. In 1952, we launched thelong-awaited RS (Royal Wing Special) Tire. In 1966, while expanding
our sales network, we took thelead in the industry by
establishing Toyo Tire (U.S.A.)
Corp. in the U.S. (currently Toyo
Tire U.S.A. Corp.) and expanded
the scale of our business, riding
the wave of rapid economic
growth.
Former Central Research CenterIn the early 1970s, our diversification andstimulation strategy promoted four businesses:
tires, chemicals, footwear and industrial goods.
Following the oil crisis, during a period in which
we found it extremely difficult to secure raw
materials, we focused on improving ourorganizational structure. In 1979, we entered into
a comprehensive business partnership with Nitto
Tire Co., Ltd. and reorganized our production
bases. We also further expanded our sales
strategy outside Japan by establishing local
subsidiaries in Australia and what was West
Germany. In an effort to strengthen our
technological development we opened theAutomotive Parts Technical Center in 1986 andthe Toyo Technical Center (currently, the Tire
Technical Center) in 2001.

Tire Technical Center

Changes in operating income

Toyo Institute of Rubber, Industry andTechnology

7

Ceremony to celebrate the first shipmentof the year

2004-2015:
Taking on the North American
market and further global expansion

2016-2020:“Second founding” with mobility
business at our core

From 2021:
Embarking on Medium-Term Business
Plan “Mid-Term ’21 Plan” to strengthen
sustainability management

In 2004, Toyo Tire North America
Manufacturing Inc. (TNA) wasestablished in Georgia, U.S.A., as our
first tire production plant outside Japan.
We introduced a new proprietaryproduction method at the plant thatcombines design and high performance,
backed by differentiating technologies.
Under Toyo Tire Holdings of the Americas
Inc., the North American regional
headquarters established in 2008, TNA
has worked hard to constantly expand its
production capacity, and local sales
subsidiaries have been unwavering intheir support of our presence in thelarge-diameter tire category for pickup
trucks and SUVs. During this period, we
also strengthened our global production
and supply system by establishing tire
production bases in China and Malaysia,
and steadily implementing sales
strategies in European countries,
Thailand, and Mexico.

In 2017 we re-established our philosophy. We
introduced a function-based organizationalframework, relocated our headquarters andmoved our technology development and platform
technology development functions to an area
close to our new headquarters. These changes
enabled us to accelerate cooperation, create
solidarity and speed up decision-making. In
2018 we became a new management entitywith mobility at the core of our business, andthe following year we changed our name to
Toyo Tire Corporation. That same year, weestablished a new brand statement, “OpenRoads Await.” In addition to formulating a
growth strategy for our new corporate stage,
we established a North America R&D Centerand a European R&D Center (in Germany). We
also decided to establish a new tire plant in
Serbia to strengthen our development andproduction/supply systems.

In 2021, we announced theMedium-Term ’21 Plan. Under theslogan of “bolstering ability to promptly
and flexibly respond through global
collaboration,” our ideal we are aiming
for, we are implementing businessstrategies to achieve our managementtargets. In April 2021, we established a
Sustainability Committee, chaired by
the president, to strengthen oursustainability management and aim forthe true integration of business andsustainability. We are making steadyprogress despite the COVID-19
pandemic and other changes in thebusiness environment. Operations at
our new Serbia Factory are up andrunning and we are steadily developing
our digital transformation
infrastructure.

TNA, the largest tire plantin the Group

Headquarters (in Itami, Hyogo Prefecture, Japan)

Serbia Factory

Malaysia Plant

Changes in operating income

Starting“Medium-Term ’21 plan”

2011-(millions of yen)

Tripolar production sites system of Japan,
America, and Asia

80,00070,00060,0002004

Established in 1945

50,000Establishing tire production
bases in America

40,00030,00020,00010,000
0

1945

TOYO TIRE Integrated Report 2024

1986

1990

2000

2004

2011

2021

2023

(FY)

TOYO TIRE Integrated Report 2024

8

Introduction

At a glance
The Toyo Tire Group has 14 production bases and 5 R&D centers, and is developing its tire and automotive parts
business globally.
British Columbia (Canada)
Guangzhou (China)

Tire Business
The primary business of the Toyo
Tire Group, which accounts forapproximately 90% of net sales, isthe production and global sale ofautomotive tires for passenger
vehicles, light trucks and SUVs,
and trucks and buses, and otherrelated products. The tire market isprimarily classified into original
equipment tires (global),
replacement tires for the Japanesemarket and replacement tires for
global markets. The replacement
tires for the North American market
in particular accounts for asignificant proportion of our sales.

Number of global bases

California (U.S.A.)

Zhucheng (China)

14 countries 40 bases

Northampton (U.K.)*

Zhangjiagang (China)

Oud Gastel (Netherlands)

Regional headquarters: 3

Willich (Germany)

14

Production bases:

Willich (Germany)

Sales companies, etc.: 22

5R&D Centers:* Some bases have more than one function andtherefore the total number does not match.

Moscow (Russia)
Kentucky (U.S.A.)
Sendai (Japan)

Georgia (U.S.A.)

Miyoshi (Japan)
Kuwana (Japan)
Kuwana (Japan)

Georgia (U.S.A.)
Georgia (U.S.A.)

Itami, Kawanishi(Japan)Automotive Parts
Business

Queretaro (Mexico)

Shanghai(China)Indjija (Serbia)

The Toyo Tire Group leverages its
vibration control technology tosupply products that improveautomotive handling stability andsoundproofing. We are striving toestablish a solid position as asupplier by promptly proposing
products that match the needs ofautomakers.

Consolidated number of
employees

11,267(including temporary employees)

Number of countries inwhich we operate:

More than

100 countries

Ayutthaya
Wangnoi (Thailand)

Main global bases

Collesalvetti (Italy)

Tire business

Tijuana (Mexico)

Sales companies

Perak (Malaysia)
Selangor (Malaysia)

Production bases

Automotive parts business
Sales companies

Production bases

R&D centers

New South Wales (Australia)

Tires and automotive parts* Figures current as of December 2023

Tires

Automotive parts

505,438 million yen

Japan

Other

91.4%

8.6%

47,374 million yen

Percentage of tire production volume(new rubber) by region (FY2023)

Net sales by region (FY2023)

Net sales by business segment (FY2023)

22.1%

13.2%

18%

122,206 million yen

72,817 million yen

Europe 3%

Asia

Japan

Total

Total

552,825552,825

million yen

million yen

North America

64.7%

357,801 million yen
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TOYO TIRE Integrated Report 2024

Total

249.6

North America

28%

thousand tons

51 %Percentage of tire sales by region (FY2023)
Other(including for
new vehicles in andoutside Japan)

24.7%
Southeast
Asia

North
America

42.3%

5.1%
Europe 10.7%

Japan 17.2 %TOYO TIRE Integrated Report 202410