June 10, 2014
Toyo Tire & Rubber Co., Ltd.
Representative: Akira Nobuki, president
Contact: Sadao Ichihara,GM, Corporate Planning Division
TEL (06) 6441-8806

Formulation of New Mid-term Business Plan – “Mid-term ’14 GO BEYOND”
Toyo Tire & Rubber Co., Ltd. (Akira Nobuki, president) announces the formulation of its new
three-year mid-term business plan “Mid-term ’14 GO BEYOND” with 2014 as the start point and2016—three-years later—as a midpoint at which to achieve specific targets, while looking forward fiveyears to 2018.
In May 2011, the company announced “Vision 2020,” our vision for the Toyo Tires group in 2020, as
well as “Mid-term ‘1l,” in which we identified our goals for the first five years of the period leading up to2015 and based on which we have grown our business. Over the past three-year period, while aided by thetail wind of a favorable external environment, including correction of the strong yen and stabilization of
raw material prices, in response to changes in the business climate we were able to achieve ourMid-term ’11 targets ahead of schedule by boosting our supply capacity and steadily implementing othermeasures based on the initial plan, while improving our product and market mixes and using our own
portfolio as a strength in strategically utilizing our resources.
Given the changes to the environment that have occurred in a brief period of time, based on anticipatedfuture global economic trends we have created a new mid-term growth scenario for the future, and haveformulated this new mid-term business plan as a declaration of our intent to take on the challenge of aneven higher business stage.
We will work to achieve the growth scenario we have drawn up, and based on the slogan “GOBEYOND” all company employees will join as one to go beyond where we are today and strive to becomea unique company whose presence shines through globally.
■ “Mid-term ‘14” Business Objectives
Year ending
Consolidated
December 2016
Net Sales
470 billion yen
Operating Income
52 billion yen
Operating Margin
11.1%
ROA
10% or above
Capital Investment
130 billion yen

Diver Tech Business
Unit, Other
380 billion yen
90 billion yen
46 billion yen
6 billion yen
12.1%
6.7%
－－
105 billion yen
25 billion yen(Assumed exchange rate 1US$=100 yen; 1€=135 yen
Capital investment means cumulative amount from FY204 to FY2016)
Tire Business Unit

■Management Policy
Financial Policy

Emphasis on balanced fund procurement accompanying soundness offinancial strength and growth investments, maintaining a D/E ratio of 0.9or less.

Shareholder
Return Policy

Return of a stable, ongoing dividend upon securing internal reserves inorder to fortify the company’s financial strength and growth.

Dividend Payout

Dividend payout of more than 20% as a index, upon consideration ofvarious conditions.

■Tire Business Strategy

Product Strategy

Market Strategy＊Fortify revenue base by optimizing product mix and expanding sales.
In the global market, aggressively boost sales in the SUV/CUV/pickup
truck category and further solidify the company’s unique presence.
＊Strengthen product development capacity in truck & bus tire category.
Achieve top-class product competitiveness through differentiating
technology.
＊Bolster market mix adapted to market movement.
〔North America〕
Focus on supply capacity and sales force as source of revenue.
〔Japan, Europe, Middle East〕
Identify market characteristics and develop foundation in the mediumterm.
〔China, Southeast Asia, Central and South America〕
Launch strategies for the unique themes of each market.

Brand Strategy＊North America
Further establish overwhelming presence in North America throughoff-road racing sponsorships and digital communications.
＊Globally
Boost identity in global marketplace through influential content in theform of AC Milan Premium Sponsorship.

Supply Strategy＊Increase supply capacity globally and boost overseas production ratio.
＊ Realize an optimal supply system through efficient & effective
operation of a flexible supply foundation.

Technology Strategy＊Further elevate technical superiority.
Balance both aesthetic quality and high performance throughdifferentiating technology.
Speed up development and boost cost competitiveness.

■Diver Tech Business Strategy
Automotive rubber
products business unit

＊Secure position as a global supplier.
＊Build up a global supply system.

Automotive urethane
products business unit

＊Sales strategy focused on technological prowess.
＊Reconstruct a domestic supply system.

Chemical & industrial
products business unit

＊Expand and deeply cultivate priority businesses.
＊Cultivate developing markets.

■Corporate Function Strategy
EnvironmentalInitiatives＊Increase lineup of environmentally friendly products.
＊Reduce environmental burden of business activities.

Involvementin Society＊Reinforce the Group’s human resource base and work environment.
＊Enhance philanthropic programs.
＊Further promote global procurement.

Corporate Governance＊Strengthen group governance.
＊Thorough compliance.