“Vision 2020” and“2011 Mid-Term Business Plan”

Charge our DreamMay 10, 2011

TOYO TIRE & RUBBER CO.,LTD.

■ Table of contents□ Review of the 2008 Mid-Term Business Plan
□ New Mid-Term & Long-Term Business Plans□ “Vision 2020”: Long-Term Business Vision□ 2011 Mid-Term Business Plan

1

■ Table of contents■ Review of the 2008 Mid-Term Business Plan
□ New Mid-Term & Long-Term Business Plans□ “Vision 2020”: Long-Term Business Vision□ 2011 Mid-Term Business Plan

2

■ 2008 Mid-Term Business Plan: Business Strategy
Announced on May 20, 2008

With our Keynote as Global Growth, we will work toStep up the growth strategy to increase company worthBusiness
Tire

Strategy and Action Plan (excerpts)
Build a solid global sales-to-supply system● Strengthen the supply chain system ● Fortify N. America & China business● Build the foundation for Europe business ● Renovate Japan business

Diver Tech

Concentrate the focus on core businesses● Build up the global structure for the anti-vibration rubber business● Revamp the anti-vibration rubber business in Japan● Renovate business3

■ Reevaluation of the Basic Strategy & Priority Projects
in the 2008 Mid-Term Business Plan
Announced on May 11, 2009

Responses to drastic changes in the business environment from the 2nd half of 2008
Priority Project activities to speed up deployment of the action plan

Reassessment of strategy

Activities in Priority Projects

Improve business structure andenhance the way of doingbusiness● Renovate supply chain (delivery) structure

Aggressively build markets inJapan & overseas● Build China business● Improve OE business profitability● Control facilities costs● Globalize NITTO brand● Build new markets (Diver Tech business)● Develop strategic products (Tire business)

Achieve in the 2011 Mid-Term Plan those items left unfinished in the2008 Mid-Term Plan44■ 2008 Mid-Term Plan vs. FY2010 Actual Results
Unit: in Millions (yen)FY2010 Actual Results

2008 Plan Targets(Announced May 10, 2011)(Announced May 11, 2009)¥294,100¥216,600¥77,500¥300,000¥240,000¥60,000¥12,200（4.1％）¥8,900(4.1%)¥3,300(4.3%)¥9,200¥11,000(3.7%)¥9,500(4.0%)¥1,500(2.5%)¥9,0003.1%

3.0％

Investment(for 3 years) ¥68,800(for 3 years) ¥54,000

Exchange rate applied

1 USD=86.0 JPY
1 EURO=113.0 JPY

1 USD=95.0 JPY
1 EURO=125.0 JPY

Sales Volume
Tire
Diver Tech /others
Operating profit（ratio to sales）
Tire
Diver Tech /others
Ordinary profit
ROA（return on asset）

5

■ Table of contents□ Review of the 2008 Mid-Term Business Plan

■ New Mid-Term & Long-Term Business Plans□ “Vision 2020”: Long-Term Business Vision□ 2011 Mid-Term Business Plan

6

■ Philosophy of the Mid- & Long-Term Business Plans
To realize the vision for what we want to be in the future,
based on the core values and the spirit which are at the heart of our foundation

Company Mission Statement“ For each of us to give our best where we work, so that our customers will
always have a better product at a better price, more today than yesterday “Corporate philosophy“A commitment to creating new value through innovation in advanced, proprietary technologies ”“Vision 2020”: Long-Term Vision for where we want to be in 2020“2011 Mid-Term Business Plan”: 5-year plan to be achieved by 20157

■Approach to “Vision 2020” & “2011 Mid-Term Business Plan”
Celebrating
100 Years
In 2045“2011 Mid-Term Business Plan” is a lodestar
toward the realization of “Vision 2020”

2020“Vision 2020”

2019Complete implementationof growth strategy

2018
2017
2016

2015

“2011 Mid-TermBusiness Plan”
5-year plan

2014
2013
2012

Establish revenue base20118

■ Table of contents□ Review of the 2008 Mid-Term Business Plan

□ New Mid-Term & Long-Term Business Plans■ “Vision 2020”: Long-Term Business Vision□ 2011 Mid-Term Business Plan

9

■ “Vision 2020”: The Long-Term Vision● Company-wide Vision● Vision for the Tire Business● Vision for the Diver Tech Business10

■ “Vision 2020”: Company-wide vision for where we want to be● A company that has strong presence with adistinctive technology and marketing strategy, whichsees things through the customer’s perspective● Earning public confidence, with each employee
fulfilling CSR● A company overflowing with energy and vitality, richwith imaginative freedom and the spirit to take onchallenges

11

■ “Vision 2020”: Tire Business

Establish strong presence with “2-Top Brands”

Asia

JapanNorth
America

Implement Global Business Operations based on the 3-Point supply chain structure12

■ “Vision 2020”: Diver Tech Business

Establish a global supply-chain structure
Asia“TOYO AUTOMOTIVEPARTS (GUANGZHOU)
CO., LTD”

EuropeNorth America“TOYO AUTOMOTIVEPARTS (USA) INC”

“NEW PACIFIC INDUSTRY CO.,LTD”

Asia

JapanNorth America

Japan Japan
Envisaged globalization
Australia
Automobile Parts business

South America“TOYO TIRE & RUBBERAUSTRALIA LIMITED”

Urethane business
Railway Air Spring business13

■ “Vision 2020”: Diver Tech Business

Launch New Business as a 3rd core business

Energy and Environment
・Biotechnology power generation
・Hydrogen infrastructure
・Electricity generating element
Traffic & Transportation Device ・etc.

Life Science(Health・Comfort)
・Rehabilitation robot
・Intelligent Transport Systems
for Pedestrians・etc.

・Short distance trip mobility・etc.

Foods, Water and Agriculture
・Enclosed type agricultural plant・etc.

14

■ “Vision 2020”: Business Targets

Total Sales: 600 Billion Yen

Operating Profit-to-Sales Ratio: 10.0%

15

■ Table of contents□ Review of the 2008 Mid-Term Business Plan

□ New Mid-Term & Long-Term Business Plans□ “Vision 2020”: Long-Term Business Vision■ 2011 Mid-Term Business Plan

16

■ 2011 Mid-Term Business Plan
● Basic Policy & Strategy● Company-wide Business Target● Tire Business Strategy● Diver Tech Business Strategy● Corporate Division Action Plan

● R & D and Engineering

17

■ Mid-Term Business Plan 2011Charge our Dream●Basic policy
・Transparent management
・Technology oriented management
・Speedy global growth●Basic strategy
・Focus management resources on growing markets
and strategic business・Establish business model for increasing profitability
・Create new demand with unique Technology
・Continue to make corporate renovation18

■ 2011 Mid-Term Business Plan
Unit: in Millions (yen)2011 Mid-Term Plan

FY2015 target
Net sales
Tire Business
Diver Tech/others
Operating profit（ratio to sales）
Tire Business
Diver Tech/other
ROA（return on asset）
Investment

FY2010 result¥24,000(7.7%)¥6,000(6.7%)¥294,100¥216,600¥77,500¥12,200（4.1％）¥8,900(4.1%)¥3,300(4.3%)

More than 7.5%

4.1％¥400,000¥310,000¥90,000¥30,000（7.5％）(for 5 years) ¥150,000

19■ Mid-Term Business Plan 2011
● Basic Policy & Strategy● Company-wide Business Target● Tire Business Strategy● Diver Tech Business Strategy● Corporate Division Action Plan

● R & D and Engineering
20

2011 Business Plan: Tire Business① Build an optimal supply chain structure② Establish a distinctive brand strategy③ Renew market/customer strategy
Shift to growing/profitable markets
Expand NITTO brand globally④ Develop the world’s best embodiment ofenvironmentally-conscious technology
21

① Optimizing the supply chain structure

Build an Optimal Supply Structure of 45 million units-Does not include TBR, LTT, PCR JV contracted out- Partially converted to PCR

Asia
12.5
millionJapan
26.0
millionN. America
6.5
million

Unit: in Millions

5045 million

40

Asia

29 million

30North America

20Japan

1002010201522

② Establishing a distinctive brand strategy

Establish Our Brand Portfolio

Full
Full lineup
lineupEliteElite lineup
lineupReliability
Reliability

FreedomFreedom

GoodGoodValue
Value

23

③ Renew market/customer strategy
Ⅰ Shift toward growing/profitable markets
Unit: in Millions (yen)350,000

310,000

300,000
250,000

Europe, others

216,600

Asia

200,000
150,000

North America

100,000
50,000

Japan

2010

2015
24

③ Renew market/customer strategy

Ⅱ Expand NITTO brand globally
100%

9.0

Others

15.0

5.0

75%

50%

91.0

80.0

2010

2015

25%

0%
25

④ The world’s best environmentally conscious technology
Develop environment-conscious products that provide comfort■ Structural Design
Develop reduced-weight tire design technology together withdevelopments in the manufacturing process■ Materials Development
Establish technology in basic materials which brings together four
elements of Nanotechnology (evaluation - analysis – processing –materials design)■Analysis Technology
Advance the technology in simulating design optimization &prediction26

■ 2011 Mid-Term Business Plan
● Basic Policy & Strategy● Company-wide Business Target● Tire Business Strategy● Diver Tech Business Strategy● Corporate Division Action Plan
● R & D and Engineering2727

2011 Mid-Term Business Plan: Diver Tech Business Strategy① Expand the automobile parts business② Expand the urethane business in Asia market③ Expand the railway air-spring business globally④ Develop the world’s best environmentally-conscious
technology

28

Diver Tech Business Strategy

Sales by product
Unit: in Millions (yen)100,000

80,00090,00077,500In du st r ial Pr o du c t
Rai lway Air Spr in g
Ur e t h an e

60,00040,000
Au t o m o bile Par t s

20,0000

2010

2015

29

Diver Tech Business Strategy
Sales by market
Unit: in Millions (yen)100,000
80,00090,00077,500

OthersNorth America
Asia

60,00040,000Japan

20,000
2010

2015

30

Developing the world’s best environmentally conscious technology

Make Advancements in Strategic Technology■ Automobile parts business
Develop environmentally-conscious products■ Urethane business
Improve comfort & environmental consciousness■ Railway air-spring business
Develop distinctive technology and new feature products31

■ 2011 Mid-Term Business Plan
● Basic Policy & Strategy● Company-wide Business Target● Tire Business Strategy● Diver Tech Business Strategy● Corporate Division Action Plan
● R & D and Engineering

32

2011 Mid-Term Business Plan: Corporate Division Action Plan

Advance CSR activities■ Strengthen company-wide CSR management

Respond swiftly to globalization■ Strengthen business strategy functionalities■ Strengthen risk management■ Strengthen intellectual property management■ Establish human resource management strategy■ Advance global procurement

Corporate innovation■ Undertake structural reform■ Rejuvenate the corporate culture33

■ 2011 Mid-Term Business Plan
● Basic Policy & Strategy● Company-wide Business Target● Tire Business Strategy● Diver Tech Business Strategy●Corporate Division Action Plan

● R &D and Engineering34

2011 Mid-Term Business Plan: R & D and Engineering

Create new technology & production system for tomorrow’s society■ Create new business■ Create and reinforce new materials and newtechnologies■ Strengthen and deepen the power of coretechnologies■ Develop environmentally friendly manufacturing
plants35