Integrated Report

2022
A ROA D BE YOND

Editorial Policy
To date, Yokohama Rubber has published an annual report as a management and financial information tool for shareholders andinvestors, and a CSR report as a tool for communicating the Yokohama Rubber Group’s policies, action guidelines, CSR approachand direction and specific initiatives in an easy-to-understand format.
To give all stakeholders including shareholders and investors a proper understanding of the Yokohama Group’s management
strategies and business activities in general, we believe it is important to systematically identify and explain non-financial informationsuch as society, the environment, human resources and corporate governance in addition to financial information such as results,business overviews and management strategy. Based on this approach, we have endeavored to further enhance and integrate
non-financial information, and starting this year have consolidated our annual report and CSR report into an integrated report. During
the editing process, we have made use of reference sources including the International Integrated Reporting Framework from theInternational Integrated Reporting Council (IIRC) and the Guidance for Collaborative Value Creation from the Ministry of Economy,
Trade and Industry, among other materials, as well as have made every effort to compile the report in a way that places an emphasison the perspective of stakeholders.
Through this report, we hope to provide even more stakeholders with a deeper understanding of the Yokohama Group.
• Reporting scope The Yokohama Rubber Co., Ltd. and Consolidated Subsidiaries• Reporting period	January 1, 2021 to December 31, 2021
*Information includes some activities which were conducted in or after January 2022
• Month of issue

October 2022

Cautionary Note Regarding Forward-Looking Statements
This report contains statements on the Yokohama Group’s projections, targets, plans, strategies and other matters related to the
future. These statements are based on determinations made from available information at the time this report was published. Be
aware that the actual performance and other metrics may differ from these forward-looking statements due to a variety of factors.

CONTENTS

02
04

Corporate Philosophy
Message from the President

Value Creation Stories
08
10
12

14
15
19

Yokohama Rubber’s History
Value Creation Process
Special Feature
Responding to the Recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD)
Looking Back on Past Medium-Term Management Plans
Medium-Term Management Plan—Yokohama Transformation 2023
Risks and Opportunities in Sustainability Management

Growth Strategies
20

24
25
26
28
30
31
32
33
34

Special Feature
Dialogue with Stakeholders
The Future of the Automotive Society and Tires
Research & Development
Motorsports Activities
Consumer Tires Business Strategy
Commercial Tires Business Strategy (TBR Business / OHT Business)
Tire Production Strategy
MB (Multiple Business) Business Strategy
PRGR (Pro Gear) Business Strategy
Digital Strategy
Message from the Chief Financial Officer

Financial & Non-Financial Highlights
34
36

Financial Highlights
Non-Financial Highlights

Initiatives of Sustainability
38
40
42
44
46

Yokohama Rubber’s Sustainability
People I (Respect for Human Rights, Diversity & Inclusion)
People II (Workstyle Reforms, Human Resources Development,
Occupational Health and Safety)
Community
The Earth

Corporate Governance
48
50
52
54
55

Senior Management
Corporate Governance
Message from Member of the Board (Outside) and Audit & Supervisory
Board Member (Outside)
Compliance
Risk Management / Cross-Shareholdings

Data Section
56
58

Financial Data / Non-Financial Data
Corporate Data / Share Information

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

01

02

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

A PATH OF SPIRIT AND PASSION
Aiming to Enrich More People’s Lives andContribute to Their Greater Happinessand Well-Being
Yokohama Rubber established its corporate philosophy in 1992.
It consists of the Basic Philosophy, Management Policies,
Action Guidelines and Corporate Slogan.
The Basic Philosophy embodies the types of business where
Yokohama Rubber commits itself in all activities.
The Management Policies outline basic administrative principles forupper-level management to commit themselves to.
The Action Guidelines are the code of conduct for each employee to comply with.

CORPORATEPHILOSOPHY

BASIC
PHILOSOPHY
To enrich people’s lives
and contribute to their greater
happiness and well-being by
devoting our wholehearted energies
and advanced technology to
the creation of beneficial products.

MANAGEMENT POLICIES• Take on the challenge of new technologies to produce
new value.
• Develop proprietary business fields to expand the scopeof business.
• Create a workplace that values, improves and energizes people.
• Deal fairly with society and value harmony with the environment.

ACTION GUIDELINES• Develop ourselves so that we may give ourpersonal best.
• Trust, challenge and improve one another.
• Nurture a welcoming, open spirit.

CORPORATE SLOGAN
Excellence by nature

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

03

Message from the President

04

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

TOP MESSAGE
Working to Create Value for the
Next 100 Years in the Midst ofa Once in a Century Transformation
Masataka Yamaishi
President, Chairman of the Board

Continuous Improvement Based on thePrerequisites of Safety, Quality andCompliancea major impact on the company.
Sustainable management is essential. By continuing to
make daily improvements based on the key prerequisitesof safety, quality and compliance, Yokohama aims to

Due to the impact of the COVID-19 pandemic that began

engage in management with a firm commitment to realiz-in 2020, the business environment surrounding theing our targets and results.

Yokohama Group has become very challenging, with arapid decline in production by automobile manufacturers.
Despite these harsh conditions we have maintained asteady hold and have continued making various improvements with regard to safety, quality and compliance.

Becoming an Organization That Can
Achieve Growth and Generate Earnings
Even as the Market Changes

We have placed a top priority on safety in our business
operations, having learned from the fire that occurred at

Our three-year medium-term management plan,

our production facility in the Philippines in 2017, andYokohama Transformation 2023 (YX2023), wasresolving never to allow any serious accidents again. In

announced in March 2021. During the plan, we willorder to create a workplace where all employees can worktarget growth into the next generation by pursuing thesafely and with peace of mind, we are making proactive“Exploitation” of strengths in existing businesses while

investments to encourage risk assessment efforts, and“Exploration” to create new value in the Midst of a Once

providing thorough education in the workplace, to ensure

in a Century Transformation. It is also an expression of mythat every employee stays mindful of safety in their work

own words, incorporating 30 years of insights and experi-

at all times.

ence developed at Yokohama Rubber and listening to

In terms of quality, which is the essential foundationand framework for any manufacturer, we believe that it isvarious opinions.
If we consider the global tire market, within a market

important to maintain a stance of remaining ever mindful

scale of around ¥20 trillion, the ratio of consumer tires

and never causing inconvenience to our customers based(such as passenger car tires) to commercial tires (suchon the philosophy of quality, cost and delivery (QCD).

as tires for trucks, buses and agricultural machinery) isWith regard to compliance, we seek to thoroughlyaround 1:1. In the future, as trends and developments

reform an awareness of compliance issues via internalsuch as Connected, Autonomous/Automated, Shared,

communication that the actions of one individual can have

Electric (CASE), Mobility as a Service (MaaS) and Digital
THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

05

Message from the President

Transformation (DX) continue to accelerate, it is expected

capacity of our plants in China in the hose & couplings

that the number of privately owned vehicles will decreasebusiness. In the industrial products business, we consoli-

and the number of (public) infrastructure vehicles that sup-dated our marine hose production bases in Hiratsuka andport the movement of people and goods will increase.

Indonesia to strengthen and expand our business by

Despite these market conditions, the Group’s sales com-focusing our resources.

position ratio in the tire business is biased, with a 2:1 ratio

maximize the ratio of high-value-added products incustomers shifts from individuals to businesses, and fromFY2022 by continuing to expand the OE use of our tires

consumer tires to commercial tires, the Group will advanceon premium cars, supplying ADVAN racing tires for motor-

a strategy based on two key approaches: “Exploitation” ofsports activities and strengthening sales of the ADVAN

its consumer tires and “Exploration” of commercial tires.

brand in general.

As for consumer tires, we aim to expand our sales

For commercial tires, we have been supporting theratio of high-value-added tires by focusing on three cate-transportation business with tire management systemgories, specifically, ADVAN ultra-high-performance tires,(TMS) and validating our business model through demon-

GEOLANDAR for SUVs and pickup trucks and winterstration tests of our tire air pressure remote access sys-

tires. By expanding original equipment (OE) use of ADVAN

tem (TPRS) for passenger cars. We will collect andand GEOLANDAR brand tires on new vehicles, strength-

analyze data obtained through these initiatives as we seek

ening sales in the replacement market and expanding theto expand our services going forward. We will also

size lineups of products including winter tires and enhanc-

advance the development of sensor tire products anding sales measures tailored to each region, we will

strengthen our service network for customers who require

increase the percentage sales volume for these products

tire services.

from the current 40% to 50%, and aim to expand profits.

In the MB segment, in the hose & couplings business,

For commercial tires, we will explore market changes

following on from China, we will invest to increase the pro-based on the themes of cost, services, DX and expanding

duction capacity of our Ibaraki Plant and work to reorga-

product lineups. In particular, we would like to focus on our

nize our production system for automotive hose couplings

off-highway tire (OHT) business, which can be expected toin North America. In the industrial products business, we

generate stable high earnings by increasing food produc-

will seek to maximize our share of the domestic market bytion and logistics and generate profits in this field.

investing in increased production of conveyor belts, while

In FY2021, the first year of our YX2023 plan, we

at the same time integrating the aerospace products busi-

achieved record sales and profits due to the fact that weness and industrial products business to accelerate struc-achieved certain results in consumer tires, including OE

tural reforms.

installation of ADVAN and GEOLANDAR tires on premium

Through the strategic measures of YX2023, Yokohama

cars, passenger cars, for van use and winter tires foris now starting to see the direction of our structure thattrucks and buses, mainly in Japan and Europe. In com-can expect to achieve growth and earnings even in themercial tires, we signed an agreement to purchase sharesface of market changes. What is crucial as a company isin Trelleborg Wheel Systems Holding AB, a Swedish man-to increase sales and profits and to achieve sustainableufacturer of tires for agricultural machinery and industrial

growth with solid earnings. The tire business is now wellvehicles. Through this acquisition, we believe that we havepositioned, with the right portfolio to grow more than our

been able to build a network that covers major markets

competitors. We will also create a system that enables us

around the world, including North America, Japan (theto cultivate our other businesses, aside from the tire busi-

Group’s key area of strength until now), Asia and now

ness, through selection and concentration. As a culmina-

Europe, enabling us to gain a global foothold in the OHTtion of these efforts, I believe it is my responsibility to put

business.

Yokohama on a growth trajectory for the future during the

In the Multiple Business (MB) segment, in addition to
restructuring through the transfer of the Hamatite business, we made capital investments to triple the production

06

For consumer tires, we are working continuously toof consumer tires to commercial tires. As the focus of

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

final 18 months leading up to 2023.

Winning Out overGlobal Competition

Taking Responsibility for the Future
through ESG Initiatives

In addition to bolstering our business strategy, we are also

Yokohama Rubber engages in environmental, social andworking on a human resources strategy to strengthen ourgovernance (ESG) initiatives under the slogan of “Caring

management base. We will reform our personnel system,

for the Future.” This also means taking responsibility for

expand the ratio of performance-linked remuneration for

the future. To achieve sustainable growth, we must create

job-typed managers and appoint talented young humana sound and profitable business model as a basis forresources to managerial positions at an early stage. In

working to actualize ESG initiatives. We believe that two-

particular, since overseas sales account for 60% of thepronged management that emphasizes offense andGroup’s overall sales, we believe that it is essential todefense is precisely what will lead us to success and what

secure and train management personnel who can carryembodies the depth and exploration we are aiming for in

the Group forward and ensure our survival against global

YX2023.

competition. Out of around 33,000 Group employees,

It is our mission to steadily implement our current

currently roughly 100 persons hold the position of depart-plans with an eye to the future direction of our businessment manager. We will first work to develop these humanand contribute to the resolution of regional and social

resources as future senior management candidates. In

issues through ESG initiatives. I am confident that we canorder to enhance our global competitiveness, it is neces-

actualize ESG initiatives by incorporating this philosophy

sary to delegate them business management as regional

into our work activities and accumulating it as a source ofgeneral managers, as well as have a well-governed orga-

organizational knowledge.

nizational structure in which local human resources who

Our overarching mission of Yokohama Rubber—withare familiar with local languages and culture conduct busi-

its 100-year history—is to carry on a company as a com-ness operations. We have already appointed local person-pany that can continue to thrive and survive for the next

nel as executive officers at Yokohama Europe, Yokohama

100 years. YX2023 also highlights efforts to create new

Off-Highway Tires (YOHT) in India and in China.

value with a view to the next 100 years as a key theme,

We also plan to integrate our Shimbashi head office

and we will tackle the challenges of creating mechanisms

and Hiratsuka Factory by March 2023, with the aim ofthat create value not only for customers but for all of ourcreating a stronger organization that can respond flexibly

stakeholders. Our desire is for all of our stakeholders to

to major changes in the business environment. In addition

understand these and other initiatives of the Group, andto achieving speedier decision-making by unifying our

to look forward to our future growth.

planning, production, sales, technology and logistics
bases, we will also continue to advance work stylereforms for employees by establishing satellite
offices with specific functions such as our sales
division in Shinagawa, which will serve as a relay
point between the two locations, and expanding
remote work/telecommuting and flextime work.
Through work styles that are not reliant on placeor time, we will work to improve a work-life balance, actualize active participation and facilitatecareer development for female employees fromthe childbirth and child-raising generation(s) andseek to eliminate severances due to nursing andchildcare commitments and spouse transfers.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

07

Value Creation Stories

Yokohama Rubber’s History
Established in 1917, the Yokohama Rubber Co., Ltd., opened its Hiranuma Plant in Yokohama in 1920 andbegan selling Japan’s first corded tire, the Hama Town Cord, a year later. After World War II, in 1950 Yokohama
opened its Hiratsuka Factory, which remains one of the company’s core manufacturing facilities. Responding todiversifying needs during Japan’s postwar reconstruction, Yokohama developed not only tires and belts but awide variety of products and grew into a comprehensive rubber products manufacturer. Yokohama has a historyof pioneering that has kept it at the forefront of its industry throughout its more than 100-year history. Since its
foundation, Yokohama has continually accepted new challenges, thus ensuring its position as an industry leader.

Start of Radial Tire Development
1956The history of radial tires in Japan began in 1956, when Yokohama
developed the first wire radial tire for trucks and buses (that tire was
eventually marketed as Japan’s first domestically produced radial tire in1963). We also began developing radial tires for passenger cars, and in
1964, succeeded in trial production using a flat profile mold. In
1966, ahead of other tire makers,
Yokohama opened Japan’s radial
tire era when the company beganmarketing Japan’s first radial tirefor passenger cars, the G.T.
SPECIAL.
In 1971, launched sales of G.T. SPECIAL STEEL,Japan’s first steel radial tubeless tire.

MB Operations Contributing toSocial Infrastructure and Industrial Fields
1952Yokohama’s pioneering spirit has not been limited to its tire business.
Yokohama’s Multiple Business (MB) operations also have a long historyof developing technologies and products that have contributed to social
infrastructure and industrial fields. From industrial products, such asindustrial and automotive hoses as well as conveyor belts, to marine
products, such as pneumatic fenders and marine hoses, and evenaerospace products, Yokohama
has worked on a wide range of
products, achieving a number ofJapan and world firstachievements.

From ADVAN Driving Tires toa Global Strategic Brand
1978In 1976, European tire product reviews stated that the wet
performance of passenger car radial tires from Japan was poor.
Yokohama accepted this technical challenge and developed the
ADVAN-HF, a tire with the world’s highest level of wet performance, which was then introduced to the market in 1978. The
first tire in the ADVAN series, the ADVAN-HF, was designed toprovide superior grip in wet and dry conditions and became
Japan’s first sports radial tire, opening up a new genre in
Japan’s tire market.
In 2005, Yokohama began promoting ADVAN as its global
strategic brand. Yokohama has continually enhanced thebrand’s image by building an expansive brand lineup, promoting
the tires’ use as original equipment in high-performance carsaround the world and supplying the tires to cars competing in
the world’s major motorsports events. As a result, ADVAN has
become the company’s global flagship brand that represents
high-performance, high quality, and high technologies for which
Yokohama has become known.
In 1988, the high-performance passenger car tire
YOKHAMA A008P receives technical certification from
Porsche.

In 2005, launched ADVAN Sport V103 worldwide, making ADVAN the global flagship brand.

In 1970, installed German-made equipment for producing a 3.2-meter wide steel cord conveyor belt atthe Hiratsuka Factory.

In 1920, completed constructionof the Hiranuma Plant, the company’s first production facility.

1917

08

1920

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

In 1952, the Hiratsuka Plant (current
Hiratsuka Factory) started production.

In 1961, construction of the
new corporate headquarters, the Yokohama Rubber
Building, was completed.

1952

1961

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

PRGR, Pioneering the Use of Science in
Golf Gear Design
1983-“Caring for the Future”
Yokohama’s CSR Activities
2007-

In 1983, Yokohama entered the golf gear market with our PRGR
brand. We have marketed a steady stream of unique golf gears,
including drivers with carbon heads and carbon shafts that weredeveloped using our specialty carbon and resin technologies.
Yokohama’s PRGR golf gears havemade golf more enjoyable by using
science to maximize golfers’ power. As
a result, PRGR have become popularwith golfers and become a golf gear
brand known for constantly coming up
with innovative ideas.

Yokohama’s initiatives are not limited to manufacturing. Our CSR
activities are also expanding. Under YOKOHAMA Forever Forest
Activities, we have been continuing with efforts based on a 2030
target of 1.3 million trees, including planted trees and saplings
provided at 14 sites in Japan and 21 overseas sites in eight countries. The YOKOHAMA Magokoro Fund established in 2016 is madeup of employees who wish to make donations as its members, andaccumulates funds by deducting 100 yen per unit every monthfrom the salaries of those employees. The funds raised are donatedto provide financial support to NPOs and NGOs working on environmental conservation, the protection of human rights and othercauses, and as relief donations in the wake of major disasters.

Ahead of the Times, Developed FuelEfficient Tires Emphasizing Environmental
Performance
1996In 1996, a project was launched to add further value to the imageof “YOKOHAMA with excellent driving performance” established by
ADVAN. This project was named the “DNA Project” because its
goal was to develop tires that would become the new nucleus(DNA) of Yokohama.
The DNA Project’s guiding phrase for tire development was“Environmental performance” ahead of the times. The top priority
was to develop tires that would improve fuel efficiency and reduce
CO2 emissions. The
result was the DNA
series, Japan’s first
fuel-efficient tires, which
improved fuel efficiency
by reducing rolling
resistance without sacrificing grip performance,thus maintaining highIn 1998, launched sales of
In 2001, launchedstandards for these two
ES01 and ES02 as first offersales of DNA ECOS,
conflicting conditions.
ings of new fuel-efficient DNA
a fuel-efficient tire forseries of passenger car tires.

In 2007, commenced YOKOHAMA ForeverForest Activities.

In 2016, established in YOKOHAMA
Magokoro Fund.

In 2017, Yokohama celebrated
its 100th anniversary.

In 2016, Alliance Tire Group, which
manufactures and sells tires for agricultural and construction machinery in
the Netherlands, became a subsidiary.
(Billions of yen)

600

passenger cars.

In 2006, under the GD100 long-term management plan running up to 2017, the 100th
anniversary of Yokohama, CSR management was enhanced with the aim of becoming a top-level company contributing to theenvironment based on the GD100 guidelines for action on the environment.

500

In 1996, established Yokohama
Tire Philippines Inc. as tire manufacturing/sales subsidiary.

400

In 1986, completed the D-PARC
comprehensive tire proving
ground in Ibaraki Prefecture.

300

200

In 1974, commenced production of highpressure hoses at the Ibaraki Plant.

100

0

1974

1986

1996

2006

Non-consolidated sales revenue (Net sales)

2016 2017 2021
Consolidated sales revenue (Net sales)

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 202209

Value Creation Stories

Value Creation Process

Social Change and Issues

Management Capital

Yokohama’s Business Activities*As of December 31, 2021

Business Environment•Decrease in the number of privately
owned vehicles and increase in thenumber of infrastructure-related
vehicles due to the expansion of
CASE and MaaS•Distribution using electric vehicles
and automation•Intensifying price competition for tires

Financial Capital
Consolidated total assets¥985 billion
Ratio of equity attributable toowners of parent

53.3 %
Manufacturing sites

40 sites•Improvement of occupational healthand safety and prevention of infectious diseases•Changing values with regard towork styles•Prevention of complicity in child andforced labor in the company andsuppliers•Social impacts on suppliers

Capital expenditures

Create a workplacethat values,
improves andenergizes people.

Deal fairly withsociety and value
harmony withthe environment.

Intellectual Capital
Patents

6,009
R&D expenses¥15.3 billion

Human Capital
Number of employees (Consolidated)

27,222
Percentage of women employed incomprehensive work positions(non-consolidated)

Products and Services Provided◆ Tires(Consumer Tires)
In addition to tires for passenger vehicles andmotorsports, Yokohama produces and sells tire tubes,
aluminum wheels and other automotive components.

(Commercial Tires)
Yokohama produces and sells tires for trucks andbuses, agricultural machinery, industrial vehicles,
construction vehicles and more.

41%

Corporate GovernanceSocial and Relationship Capital
Major regions of operation

28 countries and regions
Number of consolidated subsidiaries

109
Natural Capital
YOKOHAMA Forever Forest Activities
Tree planting and provision of saplings

1.09 million trees
and saplings to date

10

Take on thechallenge of newtechnologies to
produce new value.

¥38.8 billion

Environment•Maintenance and strengthening offoundation for proper organizational
governance•Demanding effectiveness anddiversity within the Board of
Directors and organization

Develop proprietarybusiness fields toexpand the scopeof business.

Manufactured CapitalSociety•Climate change challenges•Changes in/impact on the naturalenvironment by our production
bases and suppliers•Dependence on natural resources•Switch from fossil resources tosustainable resources

Management Policies

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

◆ MB

Multiple Business
The Multiple Business (MB) segment comprises twobusinesses for hose and couplings and industrial
materials, and includes the manufacturing and sale ofvarious high-pressure hoses, conveyor belts, fenders,marine hoses, aircraft lavatory modules and water tanks.

◆ Others
We manufacture and sell PRGR brand golf goods
and provide services within the Yokohama Group.

Basic Philosophy

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Based on its basic philosophy, to enrich people’s lives and contribute to their greater happiness and well-being by
devoting our wholehearted energies and advanced technology to the creation of beneficial products,” Yokohama
Rubber is working on the exploitation and exploration of business and contributions to social issues linked to its
business activities through the Yokohama Transformation 2023 (YX2023) Medium-Term Management Plan andstriving to create diverse value.

Value Creation Initiatives

The Value We Create

Exploitation and Exploration

Economic Value(Medium-Term Management Plan Targets)

Implement a growth strategy for the next generation based on two approaches:“Exploitation” of existing businesses and “Exploration” in response to changes in the market.

Results achieved through “Exploitation” and “Exploration”

Medium-Term Management Plan: YX2023

Raise high-value-added tire sales ratio

ADVAN
GEOLANDER
WINTER¥700 billion¥670.8 billion•Raise high-value-added tire sales ratio (AGW strategy)•Strengthen core products and brands by leveraging originaltechnologies and superior quality•Strengthen return sales in the return market•Promoting product and regional business strategies

Business profit¥70 billion¥62.2 billion

10%

9.30%

0.4 times

0.34 times

10%

13.9%

7%

8.2%

Commercial Tires: Exploration

Costs•Strengthening cost competitiveness•Strengthening our system of services (tire change andmaintenance)•Promoting Digital Transformation (DX) (IoT tires and TMS)
•Expanding our product lineup

Product
lineup

DX: Digital
Transformation

Strengthen/expand by allocating
resources to core product areas

Hose and couplings Industrial products
Growth driver

Stable earnings

Business restructuring

HamatiteBusiness transfer
completed

Aerospace products

2021 results

Sales revenue

Respond to market changes

Services

Targets

Consumer Tires: Exploitation

MB Business: Focusing Resourcesin Areas of Strength•Hose and couplings (growth drivers)•Industrial products (stable earnings)

Business profit margin
D/E ratio
ROE
ROIC¥250 billion

Operating CF
Capital investment(3-year total)

Within depreciation(excluding strategic investments)

Payout ratio

30.00%¥222.0 billion¥38.8 billion
15.94%

Social Value(Value Provided to Stakeholders)
Delivering fun and peace of mind through driving

Structural reforms

Making life more fulfilling for people everywhere• Tackle carbon neutrality• Tackle the circular economy• Develop safe and pleasant workplaces• Revitalize partnerships with communities

Contribute to Solving Social Issues through Business Activities
CSR Slogan “Caring for the Future”
Make life more fulfilling for people everywhere.
Products
Deliver fun and peace of mind.

For the Earth

Leave a sound environment to future
generations.

PeopleBuild on each other’s strengths.

Community
Coexisting and building trust

Corporate GovernanceLay a solid foundation for fulfillingsocial expectations.

To enrich people’s lives and contribute to their greater happiness
and well-being by devoting our wholehearted energies andadvanced technology to the creation of beneficial products*As of December 31, 2021

Customers

To enrich people’s lives and contribute to theirgreater happiness and well-being by devoting ourwholehearted energies and advanced technology
to the creation of beneficial products

Number of cases where rules and regulations or voluntaryrules have been violated regarding safety of products, labeling,or supply/use of products (consolidated)

Shareholders
and Investors

Economic performance(Total, Non-consolidated basis)

Employees0Grow businesses and enhance corporate value.

¥354.9 billion

Create a workplace that values, improves andenergizes people.

Rate of lost-worktime injuries(consolidated/per 1 million work hours)

0.20

CSR activities throughout the value
Business Partners Promotechain.

Number of companies that responded to
the CSR procurement questionnaire

The Earth

To protect the blue earth and its people, we willtake on the challenge of developing a sustainable
society in harmony with the environment.

Percentage of total production yielding
environmentally friendly products (consolidated)

Community

1,151/100%

100%

We will contribute to the prosperity and development of local communities and become acompany that contributes to the earth and earns
the unwavering trust of society.

Implementation percentage of community activities
and dialogues at production sites (consolidated)

100%

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

11

Value Creation Stories
Special Feature

Responding to the Recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD)
Yokohama has identified climate change mitigation and adaptation as an important management issue forcontributing to a sustainable society and ensuring sustainable corporate growth, and expressed its support for
the recommendations of the TCFD* in January 2022. Going forward, we will actively disclose information related
to our action on climate change in line with the TCFD recommendations.
* TCFD stands for Task Force on Climate-related Financial Disclosures. The TCFD was established in 2015 following
a request from the G20 for the Financial Stability Board (FSB) to consider climate-related disclosures and actions to betaken by financial institutions. The TCFD recommends that companies and other organizations evaluate and disclose
the financial impact that climate-related risks and opportunities have on management.

Governance

Strategy

The CSR Council, which is chaired by the President, Chairman of theBoard, convenes twice a year (in May and November), and is positioned todraft and consider challenges related to climate change mitigation andadaptation, as well as other CSR challenges to be tackled by the
Yokohama Group. Regarding climate change mitigation and adaptation, an
Environment Council has been established. Environmental activities are
pursued with the establishment of two task forces, two councils and fourcommittees as subordinate bodies to the Environment Council. With an
officer in charge (head of the CSR Div.) as its chairperson, the Environment
Council deliberates and makes decisions regarding various issues such ascarbon neutrality and oversees the environmental activities of the
Yokohama Group.
■ Climate Change-Related Governance Support System

We have classified climate-related risks into two categories, specifically risks associated with the transition to a low-carbon economy(transition risks) and risks associated with the physical impacts ofclimate change (physical risks). We have also assessed the magnitudeof the financial impacts to be affected and summarized the risks andopportunities for our business. In addition, we conducted scenario
analysis using the scenarios presented by the International Energy
Agency (IEA) and the Intergovernmental Panel on Climate Change(IPCC) regarding temperature increase, and examined adaptation
measures and financial impacts based on the risks and opportunitiesof the 1.5°C and 4°C scenarios, respectively. We will continue toexamine risks and opportunities and refine our scenario analysis.
■ Major Risks and Opportunities Related to Climate Change

Board of Directors

Material Factors

President and Representative
Member of the Board

Policy andRegulations
Markets

Export Control
Committee, etc.
Officers and thedivisions under
their management

CSR Council

Environment Council
Chairman:Head of CSR Div.

Carbon Neutral Committee
Chairman: Head of CSR Div.

Central Safety and
Health Committee

Biodiversity & YOKOHAMA
Forever Forest Committee

Central Disaster
Prevention Council

4Rs Committee

Compliance
Committee

Risks

Chairman: President,
Chairman of the Board

Chairman: Head of CSR Div.

Chairman: Head of Research &Advanced Development Div.

Physical risks

Personal Information
Protection
Management
Committee

Transition risks

Management Meeting
Executive Committee
Risk Management
Committee

Transition to a
decarbonized society

Technology

Reputation

Change in demand for
products and services

Markets

Response to changes in
the automotive industry

Markets

Intense weather disasters
due to risingtemperatures

Acute

Intense climate change

Chronic

Chemical SubstanceManagement Committee

Chairman: Head of Research &Advanced Development Div.

EnergySources
Transition to a
decarbonized society

Tire Production
Environmental Task ForceMB Production
Environmental Task Force

Head: In charge of
MB Production and Engineering

Subsidiary Production
Environmental Council

Chairman: General Manager,
Head of Environmental Protection
Promotion Dept.

Global Environmental
Council

Chairman: Head of CSR Div.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Opportunities

Head: Head of
Tire Production Div.

12

Category

Products
andServices

Change in demand for
products and services

Products
andServices

Response to changes in
the automotive industry

Products
andServices

Climate change

Products
andServices

Potential Financial Impact
Introduction and rise of carbon pricing
Resource (raw material) price hikes and supply
instability
Increase in renewable energy and fuel prices (crudeoil, natural gas)
Capital investment to improve manufacturing
process efficiency
Impact on customer evaluation of emission
reduction efforts and stance, and on stock prices
Response to the global movement to promote theuse of renewable energy (reputation among
stakeholders)
Product selection based on evaluation of CO2
emissions during manufacturing (competition within
the same products)
Decline in car sales due to MaaS
Raw material procurement difficulties and higher
procurement costs due to supply chain disruptions
Equipment damage or shutdown due to extreme
weather
Depletion of natural rubber (natural resources) due
to climate change, making procurement difficult
Decline in demand for winter tires due to reduced
snowfall, etc.
Increased R&D investment required to improve
product performance
Reduce energy costs by improving manufacturing
process efficiency
Increase market share by responding quickly tochanges in demand (carbon neutral compliance andperformance requirements for electric vehicle (EV)installation) and stricter regulations.
Improve competitiveness and profitability by offering
environmentally friendly products using renewable/
recycled raw materials and fuel-efficient, low-carbon
products
Increased demand for products and services that
support next-generation mobility(CASE and MaaS compliance, new business
opportunities through hydrogen utilization)
Increased demand for products and services that
contribute to disaster prevention, recovery,
temperature change, food and nature(e.g., tires, oil fenders, etc., which contribute tocrop/forest growth)

Impact
Large
Large
Large
Medium
Small
Small

Large
Large
Large
Large
Large
Large
MediumMedium

Large

Large

Large

Large

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section■ Summary of Scenario Analysis Results

Scenario Conditions

1.5°C Scenario

4°C Scenario

Scenario Overview

Limit the increase in the global average temperature to 1.5°C above preindustrial levels by 2100 through stringent climate policies and technologicalinnovation for sustainable development.

Failure of strict climate policies and technological innovation, and rapid intensification of the physical effects of climate change, resulting in a 4°C increasein average temperature by 2100 relative to pre-industrial levels.

Transition Risk

IEA
Net Zero Emissions by 2050 Scenario (NZE)

IEA
World Energy Outlook 2021 (WEO2021)

Physical Risk

IPCC 6th Report SSP1-1.9

IPCC 6th Report SSP5-8.5

Mainly transition risks/opportunities are manifested.

Mainly physical risks/opportunities manifested.

[Risks]Increased energy cost burden and capital investment to improve manufacturing process efficiency due to the need to comply with strict climate change
regulations, procurement of renewable energy and introduction of carbon
pricing
Increased R&D and procurement cost burdens for renewable/recycled raw
materials due to the increase in the number of products with reduced environmental impact[Risks]Increased occurrence of serious natural disasters at bases and in the supply
chain. In addition, extreme weather conditions will deplete natural resources,
making raw material supplies unstable.
Product demand changes due to chronic climate change, such as lower
demand for winter tires due to reduced snowfall, etc.

Reference
Scenario

Analysis Results[Opportunities]
Competitiveness and profitability will be enhanced through carbon neutral
compliance, early response to EV-mounted performance requirements, andprovision of environmentally friendly, fuel-efficient, and low-carbon products[Opportunities]
Increased demand for products and services for disaster prevention, recovery,
and temperature fluctuations

Risk Management
Regarding risks related to climate change, subordinate organizations to the Environment Council, including the Carbon Neutrality Promotion
Committee and other task forces, councils and committees identify and assess each risk and engage in activities to mitigate them. For the material
risks identified by each task force, council or committee, the Environment Council deliberates and decides on countermeasures. For physical risks
such as natural disasters, the Central Disaster Prevention Council is working on disaster prevention and BCP and promoting risk reduction. Matters ofgreat seriousness and urgency are deliberated by the Risk Management Committee (chaired by the head of the Corporate Administration Div.), which
was established to strengthen our defensive posture against the various risks that surround Yokohama and are appropriately evaluated and handled.
The activities of the Risk Management Committee are regularly reported to the Board of Directors.

Metrics and Targets
Yokohama has declared three medium-to-long-term targets regarding
its environmental activities, namely carbon neutrality, circular economy
and co-existence with nature, in order to minimize the risks related toclimate change.

■ Roadmap to Carbon Neutrality by 2050

CO2 emissions■ Medium-to-Long-term Environmental Target

Carbon Neutrality• Reduce CO2 emissions from company activities by 38%
by 2030 compared to fiscal 2013
• Achieve net zero CO2 emissions (carbon neutrality) in
our activities by 2050

Circular Economy• At least 30% renewable/recycled raw material usage
by 2030• 100% sustainable raw materials usage by 2050

Coexistence with Nature

Cumulative 1.3 million trees planted and saplings
provided by 2030 as part of Forever Forest activities

In addition, the results of various metrics, including GHG emissions,water usage, waste volume, the Yokohama Forever Forest andbiodiversity conservation activities are disclosed on the Yokohama
CSR website. Please refer to the below link for data.
WEB■ Progress on Material Initiatives

https://www.y-yokohama.com/global/csr/materiality/#04

Zero CO2
emissions
2013

2020

CO2 reduction targets

2030

2040

2050
Achievement ofcarbon neutrality

38% reduction■ Roadmap to a Circular Economy

100% sustainable raw materials
Percentage of renewable/
recycled raw materials used

2020
Targets

2025

2030

27％

30％

2040

2050
100%

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

13

Value Creation Stories

Looking Back on Past Medium-Term
Management Plans
Financial Results
GD100

GD2020(Billions of yen)

(%)

600

12.0

500

10.0

400

8.0

300

6.0

200

4.0

100

2.0

0

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Sales revenue

2017

2018

Business profit

2019

2020

0.0

Business profit margin

Review of Past Medium-Term Management Plans

GD100 (Grand Design 100) Fiscal 2006 – Fiscal 2017

Promoting Global Expansion and Achieving Steady Growth across Four Phases and 12 years
Progress of Global Expansion• Enhanced network of production, sales andtechnology sites• Expanded overseas business of tires for new
vehicles• Enhanced global brand recognition(Partnership agreement with English Premier
League Club Chelsea FC since 2015)

Improvements to Technologies That
Contribute to the Environment

Strengthening of the Business Portfolio• Achieved a 100% ratio of products that contributeto the environment• Global rollout of fuel efficient replacement tires• Expanded adoption and delivery of fuel efficienttires for new vehicles• Tire manufacturer for agricultural machinery andconstruction vehicles
Acquisition of Alliance Tire Group (ATG)• Acquisition of Aichi Tire Industry, a manufacturer oftires for industrial vehicles

Released the BluEarth
AE-01 in 2010, the first
iteration of the BluEarthseries of fuel efficienttires for passenger
vehiclesAlliance Tire Group(ATG), a dedicatedmanufacturer of offhighway tires, acquiredin 2016

Entered into a
partnership agreementwith English Premier
League Club Chelsea
FC in 2015

Increased Percentage of the Commercial Tire Business

GD2020 (Grand Design 2020) Fiscal 2018 – Fiscal 2020

Executing a Growth Strategy That Redefined the Strengths of Each Business
Consumer Tire Business

Commercial Tire Business

MB Business

Expanding Our Presence in the Premium Tire Markets

Making Commercial Tires as a Pillar of Revenue in the
Next Century

Concentrating Resources in Fields of Expertise• Premium tire strategy Adopted in 13 car models• Winter tire strategy Introduction of three new
products• Hobby tire strategy Introduction of six new products• Communications strategy Participation in
Hoonigan Gymkhana 2020

• Automotive parts business: Expanding deliveries ofautomotive hose & couplings in North America• Marine products business: Delivery of the world’s
biggest ultra-large pneumatic fenders• ATG driving the business• Improved supply from the North American TBR(truck and bus tires) plantCommercial tire business as a percentage of sales revenue
GD2020 Target

2020 Results

Position commercial tires as a pillar of growth◀ADVAN V105, theglobal flagship tire used
Porsche’s Cayenne,
BMW’s X3 and otherpremium vehicles

14

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Commercial
tires
MB
products◀BluEarth-4S AW21
all-season tire

Commercial
tires
Consumertires

Consumertires
MB
products

2015

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Medium-Term Management Plan—
Yokohama Transformation 2023
Under the Yokohama Transformation 2023 (YX2023) Medium-Term Management
Plan that runs to the fiscal year ended 2023, the Yokohama Rubber Group is tacklingtransformation aimed at next-generation growth. In this section we share an overview
of YX2023, including a report on the progress made in fiscal 2021.

Target Pursuits: “Exploitation” & “Exploration”
The automotive industry is entering an era of great change, driven by the CASE, MaaS and DX trends. Under YX2023, we will aim for“Transformation” that targets growth into the next generation by pursuing the “Exploitation” of strengths in existing businesses as well as“Exploration” to create new value that meets the needs of this transformative era. Through this effort, we aim to achieve record highs for sales
revenue of ¥700 billion and business profit of ¥70 billion in fiscal 2023. We also aim to achieve the goals originally envisioned in GD100 as theculmination of our first 100 years, specifically, sales of ¥770 billion and profit of ¥80 billion in fiscal 2025.

Culmination of past 100 years
GD100

YX20232024-2025
770.0(Billions of yen)Salesrevenue

Business
profit

650.5
570.6

50.1

36.8

2019
Results

2020
Results

620.0

50.0

700.0

670.8

Achieve
GD100 targets

Record highsales revenue

62.2

2021
Plan Results

2022
Plan

70.0

80.0

2023
Plan

2025
Plan

■ Financial Targets, Fiscal 2021 Results

Fiscal 2021 results
Sales revenue
Business profit(Business profit margin)

2023 targets¥670.8 billion¥700 billion¥62.2 billion (9.3%)¥70 billion (10%)

D/E ratio

0.34

0.4

ROE

13.9%

10%

8.2%

7%

ROIC
Operating cash flow¥250 billion (3-year total)

Capital investment

Within depreciation (excluding strategic investments)

Progress in Fiscal 2021
Amid a tough management environment with sharply rising raw
material prices and logistics costs, declining production among
auto makers and the impact of the COVID-19 pandemic, as aresult of responding in a timely fashion to regional demand swings,
we achieved record sales and profit, with sales revenue of ¥670.8
billion, business profit of ¥62.2 billion and profit attributable toowners of parent of ¥65.5 billion.

Key Viewpoint: Turning Consumer Tires into Commercial Tires
The consumer tire market centered on passenger car tires and the commercial tire market, which includes tires for trucks, buses, agricultural
machinery and other commercial-use vehicles, are about equal in scale. However, we expect the CASE, MaaS and DX trends will decreaseindividual ownership of cars and increase the number of infrastructure-related vehicles devoted to moving people and goods, effectively turning
many consumer tires into commercial tires. We plan to respond by “Exploitation” of our efforts to expand sales of our high-value-added consumer
tires while “Exploration” for new opportunities created by market changes in the commercial tire business.

Global Tire Market
Consumer tires (PCR, MC)

Exploitation

Commercial tires(TBR, OR, AG, ID, AC)

Turning consumer tires into commercial tires
B to B (to C)
Raise high-value-added
tire sales ratio
ADVAN
GEOLANDER
WINTER

Exploration

Respond to market changes
Cost
ServiceDX

Product
lineup

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

15

Value Creation Stories

Consumer Tires: “Raise High-Value-Added Tire Sales Ratio”
We will focus on the three categories of ultra-high-performance tires,tires for SUVs and pickups, and winter tires, seeking to exploit salesof our ADVAN, GEOLANDAR and WINTER tire series. In doing so,
we will increase the sales of ADVAN, GEOLANDAR and WINTER
tires as a percentage of total sales from the current 40% to morethan 50%. To do so, we have worked on the three measures shownon the right.

1. Expand OE use of ADVAN and GEOLANDAR
2. Strengthen sales in the replacement market and expand tiresizes in each brand, including winter tires
3. Strengthen sales of tires suited to local market needs, via
integrated “Product & Regional Strategies”

RussiaSUV
Pickup truck

UHP

WINTER

40%(2019)

EuropeUHP,
WINTERADVANWINTER

North America

WINTER

SUVs, Pickup trucks
GEOLANDAR

China
UHP, CUVADVAN,GEOLANDARJapan
WINTER

Asia

TargetUHP,
Pickup trucks
ADVAN,GEOLANDAR

50%+

Progress in Fiscal 2021 We have worked to expand the fitting of our tires on new premium cars, such as ADVAN for the Mercedes AMG GLB 35

4MATIC, and GEOLANDAR for the overseas specification Toyota Land Cruiser. In the replacement market, we positioned fiscal
2021 as the “YOKOHAMA Winter Offensive,” launching WINTER tires for passenger vehicles, vans, trucks and buses, primarilyin Japan and Europe. As a result, high-value-added products in fiscal 2021 accounted for 41% of sales, demonstrating growththat outpaced fiscal 2019.

Commercial Tires: Respond to Market Changes and Further Strengthen the BusinessIn the commercial tire business, we pursued “Exploration” of the value we provide as a way to capture major market changes such as CASE,
MaaS and DX, and worked on the four themes of cost, services, DX and product lineups. We have also worked to strengthen the off-highway tire
(OHT) business and truck and bus tire (TBR) business.

Cost Competitiveness

Service

To meet the expected growth in demand for lower cost tires, weare positioning Yokohama India Pvt. Ltd.’s passenger car plant as
the most cost-competitive passenger car plant in the YokohamaGroup, as a first step in the revision of our production network withthe aim of establishing a new
low-cost model in tune withthe tire market of the future.
We also are considering using
a similar low-cost model toincrease output at our truck
and bus tire plant in Thailand.

With CASE and MaaS expected to increase corporate ownershipof vehicles, we believe the value demanded from tire manufacturers
will expand from the tires themselves to tire-related after-sales
services, including tire replacement. We already have a sales andlogistics network with locations in all of Japan’s 47 prefectures, andwe will leverage this network to strengthen our services to corporate customers.
More specifically, we will expand our fleet of service vehicles,
which we use to provide tire replacement, tire checkups and othertire management services to such corporate customers as car
dealers and companies operating car-sharing businesses. Goingforward, we aim to provide more flexible and mobile services.

India PC plant

DX: Digital Transformation
Applying digital technologies to tires to support enhanced information services is becoming an important trend. We are developing
cutting-edge sensor-equipped tires and plan to add functions tothe sensors to gradually increase the services and customers thatcan make use of these tires.
Toward that end, we are forming alliances with companies indifferent industries. For example, we are working with Alps Alpine
and Zenrin on a trial operation of a system that links data obtained
from tire sensors equipped with a road surface detection systemwith map information. We are considering using this system tocreate a new tire-related business.

Develop IoT sensors
Provide system platform

Provide map data

Develop and deploy IoT tires

Automakers
Logistics companies
Vehicle aftermarket

16

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Growth Strategies

Financial & Non-Financial Highlights

Product Lineup

Corporate Governance

Data Section■ Expected transformation of vehicles used in each stage of the

distribution process

Present

Today, deliveries are made by drivers operating a range of vehicles,from large trailer trucks to small trucks and vans. However, as
vehicles become electric and self-driving, the transport of goods
over long and short distances as well as the last one mile to therecipient’s door could well be accomplished without drivers. The
diverse lineup of vehicles to reach this in the future will needdifferent types of tires. For example, last-mile vehicles may be fittedwith puncture-resistant tires.
One of our strengths is being one of the few tire manufacturersthat has a full lineup of tires, from truck and bus tires to airlessresilient tires, which will be required by the expected change in thetypes of vehicles used to distribute goods in the future. Also, wewill continue to broaden our product lineup to further strengthen
this competitive advantage.

Progress in Fiscal 2021

Initiatives of Sustainability

City to city

With in city

Last one mile

Driverless delivery

FutureValue Creation Stories

Low speedautonomous–20km/hvehicle–100km/h–100km/h–40km/h

TBR

LTR

PCR/VANSOLIDAs DX initiatives, we have been supporting the transportation business with TMS (Tire Management System) and validating ourbusiness model through demonstrative testing of the Tire air Pressure Remote access System (TPRS) for passenger cars. We
have been collecting and analyzing data obtained through these initiatives to expand our services. On the product front, we will
advance the development of sensor tires while strengthening our service network for customers who require tire services.

MB Business: “Shift Portfolio to Products with Highly Stable Earnings and Strong Growth
Potential”
We will solidify the MB segment’s ability to generate stableearnings by concentrating resources in its two core productareas—Hose & Couplings and Industrial Products. We will
improve the Hamatite business by focusing on its core productareas. In the Aerospace Products business, we will makestructural reforms targeted at bringing the business more in linewith today’s market.

Strengthen/expand by allocating
resources to core product areas
Hose & Couplings

Industrial Products

Growth driver

Stable earnings

Increase production capacity
Maximize market share
Reorganize production sites

Business restructuring
Hamatite

Aerospace Products

Transfer completed
in November 2021

Structural reforms

Progress in Fiscal 2021 In the Hose & Couplings business, we will make capital investments to triple the production capacity of our plants in China. In

the Industrial Products business, we have consolidated our marine hose production bases in Hiratsuka and Indonesia tostrengthen and expand our business by focusing our resources. In November 2021, the Hamatite business was transferred toSika AG and made steady progress on business restructuring.

Strengthening Management Foundations: “Human Resources Strategy” and“ESG Initiatives”
Human Resources Strategy
Personnel system reforms will strengthen management and administration at all levels, build a stronger organization and promote workstyle reforms.

ESG Initiatives
We engage in ESG initiatives under the slogan of “Caring for
the Future.” In addition to eco-friendly products and carbon
neutrality initiatives, we are also working on activities tosupport local communities, the strengthening of corporate
governance and the development of comfortable workplaces.

Ultra-lightweight
concept tire

Hydrogen filling hose

YOKOHAMA Forever Forest
tree-planting activities

Progress in Fiscal 2021 As part of our human resources strategy, we are looking to expand the ratio of performance-linked remuneration for job-typed

managers and appointed talented young human resources to managerial positions at an early stage. With the integration of thehead office and Hiratsuka scheduled for completion in March 2023, we aim to achieve speedy decision making by unifying
production, sales, technology and logistics sites, and also promote workstyle reforms.
As part of ESG initiatives, we established medium-to-long-term environmental targets. In terms of carbon neutrality, we will
reduce CO2 emissions by 38% compared with fiscal 2013 levels by 2030, and achieve net zero CO2 emissions by 2050. With
regard to the circular economy, we will achieve at least 30% renewable/recycled raw material usage by 2030, and aim for 100%
sustainable raw materials by 2050.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

17

Value Creation Stories

Risks and Opportunities in Sustainability
Management
Materiality (Important Issues)

Products

Issues to Be Recognized• The spread of CASE*1 and MaaS*2 in the automotive industry• Innovation through the utilization of technology• Increasingly diverse customer needs (cost, performance, quality,
environmental and social contributions)• The safety and security of customers

Deliver fun and peace of mind.
*1 CASE: An acronym for Connected, Autonomous, Shared & Services, and Electric*2 MaaS: Mobility as a Service. A new concept of integrating various types of transportation
services into one and providing them to users

The Earth
Leave a sound environment to future
generations.

PeopleBuild on each other’s strengths.

Community
Earn the confidence of our neighbors.

Corporate GovernanceLay a solid foundation for fulfillingsocial expectations.

18

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

• Climate change issues• Achieving carbon neutrality• Promoting a circular economy• Preserving biodiversity• Sustainable use and management of natural resources• Prevention of pollution and chemical substance management• Respect for human rights• Diversity & inclusion• Workstyle reforms• Human resources development• Occupational health and safety•R egional environmental issues, such as water and air pollution,and environmental destruction•R egional social issues such as respecting the land rights ofindigenous peoples, human rights violations, disasters,
healthcare, trading irregularities and conflict minerals• Revitalizing local communities, creating economic effects• Communication with local communities•M aintenance and strengthening of foundation for properorganizational governance• Sustainable improvement of corporate value•E ffectiveness and diversity of meeting bodies such as the Boardof Directors and committees• Dialogue with stakeholders and disclosures

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

While environmental destruction and social issues pose significant risks to business continuity, working tosolve social issues can also lead to new business opportunities. Yokohama Rubber is aware of the risks andopportunities in sustainability and wishes to contribute to the richness of the earth and society through ourbusiness activities.

Opportunities

Risks

Opportunities

Risks

Opportunities

Risks

Opportunities

Risks

Opportunities

Risks

Medium- and Long-TermBusiness Risks and Opportunities

Yokohama Rubber’s Initiatives and Vision

Risk of accidents and lawsuits due to poor product safety, recalls
and damage to brand value
Decline in product demand due to changing customer needs
Decrease in demand for winter tires due to decrease in snowfall
Sharp rise in resource prices
New business opportunities through adapting to CASE and MaaS
Responding to changing customer needs and stricter regulationsat an early stage
Improvements in competitiveness and profitability through reuse
and recycling• Manufacture and sale of tires and industrial materials withhigh levels of safety, quality and environmental performance• Manufacture and sale of carbon neutral products• Development of biomass rubber and promotion of retread
tires• Development of products and services that utilize AI andIoT technologies (wear detection, road surface detection,
tire management, damage prediction)• Manufacturing and selling tires for industrial and construction vehicles that support social infrastructure, agriculture
and forestry machinery that contribute to sustainableproduction in the agriculture and forestry industry• Manufacturing and selling industrial products that contributeto greenhouse gas reduction

Environmental laws and regulations and litigation risks
Impact on climate change and air pollution, increase in energy
costs
Environmental impact of waste and emissions
Depletion and shortage of water resources
Reduction of energy costs by improving manufacturing process
efficiency
Reduction of resource price fluctuation risks and improvements inoperational efficiency through reuse and recycling
Reduction of environmental protection costs• Achieve carbon neutrality in Yokohama activities by 2050
• Sustainable material usage rate of 100% by 2050
• Reach 1.3 million cumulative trees planted in
YOKOHAMA Forever Forest Activities by 2030
• Sustainable natural rubber procurement• Coexistence and shared prosperity with agroforestry
farming method promotion and rubber farmers• Roll out activities to preserve biodiversity at production
sites

Human rights violations in the supply chain
Losses and business impact due to occupational accidents,
natural disasters, infectious diseases, etc.
Work absences due to poor mental health, lost productivity due
to decreased satisfaction
Work style reform emphasizing diversity and lifestyles
Establishing traceability for the sustainable procurement of natural
rubberImproving skills and developing pleasant workplaces throughhuman resources development
Retaining talented human resources through health andproductivity management• Prevent and mitigate the risk of human rights abuses
through human rights due diligence• Implementation of procurement in accordance with CSR
procurement guidelines• Strengthening activities in the Diversity Promotion
Taskforce• Expanding system for flexible workstyles• Developing and selecting value-added human resources• Strengthening of safety and disaster preparedness
initiatives• Health management initiatives

Local community opposition to operations due to the environmental impact of waste and emissions
Risk of legal action and reputational risks due to social issues
such as human rights violations occurring
Revitalization of local communities by solving environmental andsocial issues
Contributing to economic development by creating jobs in local
communities
Provision of products and services tailored to changes to mobility
services in the era of an aging population, depopulated areas andthe new normal• Supporting biodiversity conservation activities, healthcare and education in local communities• Disaster prevention and disaster relief activities in local
communities• Collaboration with the YOKOHAMA Magokoro Fund andNPOs• Implementation of procurement in accordance with CSR
procurement guidelines• Creation of employment in regions where our business isdeveloped

Compliance with laws and regulations, responding to systemicchanges
Social demands to strengthen corporate governance
Violations of antitrust laws, bribery, price cartels, export controls,etc.
Practicing offensive management to enhance corporate value
Strengthening the risk management system• Clarifying commitment to business plans throughmedium-term performance-linked compensation
scheme• Diverse executive personnel with the skills necessary for
management strategy• Strengthening the governance system• Strengthening business continuity plans (BCPs)• Developing systems to promote compliance

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

19

Growth Strategies
Special Feature

Dialogue with Stakeholders

The Future of the Automotive Society and Tires
How will the automotive society, the performance required of tires and their roles change due to thewidespread adoption of electric vehicles (EVs)? We invited Mr. Tadashi Tateuchi, who has been dedicated tothe development of EVs in Japan for around three decades, as a guest to speak with YOKOHAMA’s chief tire
technical officer.

YOKOHAMA’s Initiatives Related to theEnvironmental Performance of Tires
Tateuchi I think YOKOHAMA began pursuing environmental initiatives quite early on compared with tire manufacturers in Japan and abroad. The Japan EV Club was
established in 1994. We have received support for many
years up to this point for annual events such as the JapanEV Festival, a major EV racing event, since 1995, and theJapan EV Rally Hakuba in Hakuba village in Nagano
Prefecture since 2014.

20th Japan EV Festival (2014)(Photo courtesy of Japan Electric Vehicle Club, Photographer: Yasushi Miura)

Mr. Tadashi Tateuchi
Managing Director of Japan Electric
Vehicle Club and Motor Journalist

20

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Seimiya At YOKOHAMA, we have embraced the idea of
pursuing environmental performance ahead of the times
as a key concept and launched the DNA Project in 1996
to develop a new core tire that would lead to improved
fuel efficiency and reduce CO2 emissions. This was rightabout when the Japan Electric Vehicle Club was beginning its activities.
At the time, we had long been focused on reducing
tires’ roll resistance without compromising their gripping
force. The year 1998 saw the release of the DNA series,
Japan’s first fuel-efficient tire which brought those two
conflicting properties into balance.
Tateuchi What particularly impressed me was the 2001
Electric Charging Journey made using an EV-A class. Foraround half a year, we charged 621 times and managed
to drive around Japan. We also received support from
YOKOHAMA engineers and achieved the feat after a process of trial and error.

Initiatives of Sustainability

Corporate Governance

Data Section

3rd Japan EV Really 2016 Hakuba - Norikura - Takayama (Norikura Skyline)(Photo courtesy of Japan Electric Vehicle Club, Photographer: Yasushi Miura)

Seimiya It was the DNA dB tires that were fitted on the
EV-A class. YOKOHAMA has continued to promote technological development for EVs based on the themes ofharmony between the joy of driving and the environment,
and R&D into tires for EVs.

Shinji Seimiya
Member of the Board and Officer, Chief Technical
Officer, in charge of Corporate Quality AssuranceDiv., Head of Tire Development Div.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

21

Growth Strategies
Special Feature

Dialogue with Stakeholders / The Future of the Automotive Society and Tires

In 2013, we developed the AERO-Y EV concept car
and unveiled it at Tokyo Auto Salon 2013 with NAPAC. It
was produced out of a desire to employ eco-friendly technologies in every aspect while offering the joy of intuitive
driving to advance the growth of EV motorization. During
the development process, we concentrated on reducing
air resistance and adopted tire and body designs basedon aerodynamics. We also combined the latest technologies from various departments that had been cultivatedthrough the development of aerospace components andother products.
Tateuchi That year we took on the challenge of driving
an EV around Japan only using rapid charging. It had
been said that EVs will never take off because there is nota rapid charging infrastructure in place, but over thecourse of around two months, we covered a distance of
8,160 km with a cruising range of 80 km. This time weonce again embarked on the journey with a vehicle fittedwith YOKOHAMA’s eco tires.
Seimiya Up until around 20 years ago, the major development themes concerning the environmental performance of tires were roll resistance and lighter weight, but
now all kinds of performance metrics need to be met. The
features offered by a tire don’t change dramatically justbecause it is equipped on an EV, but the level of requirements connected with fuel economy (cruising range) havegotten very high. Also, since EVs characteristically generate a lot of torque, the tires need to exhibit sufficient abrasion resistance to withstand those forces. There are also
requirements for quietness so that the quiet runningsound of an EV is not disturbed.
Tateuchi Generally speaking, the issue of global
warming gained attention in Japan following COP3
(Third Conference of the Parties to the UN Framework
Convention on Climate Change) held in Kyoto in 1998,
but around this time YOKOHAMA was already pursuing

BluEarth brand22

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

R&D into improved fuel economic and low CO2 emissions,
including the structure of the tires and the materials usedin them. The insights accumulated during that time areconnected with the products we have today.
Seimiya Now DNA has been inherited by the BluEarthbrand, and we are achieving even more improved environmental performance. Recently, we have also been promoting tire development in cooperation with raw material
manufacturers to increase the percentage of renewable orrecycled raw materials used in our products.

The Bond of Motorsports Bringing Us Together
Seimiya I think the reason we have had such a good
cooperative relationship over many years is because
motorsports is rooted in our efforts. I of course love todrive, and I always wanted to learn about EVs while test
driving them around a circuit. I think those things are whatmade us a good match.
Tateuchi I’m happy to hear that. Only your company
would say something like that. In fact, my first encounter
with YOKOHAMA dates back to the 1970s. At the time I
was involved with the design of racing cars, and since ourteam was going to enter F2, YOKOHAMA provided theracing tires. That was the beginning of my relationshipwith YOKOHAMA. This was around the time that ADVAN
was coming on the scene with a lot of momentum.
It’s no exaggeration to say that motorsports are thelifeblood of cars. It was my starting point. In addition,
there is huge potential in cars that can be charged withelectricity to drive. By organizing races with EVs, we can
improve EV recognition and communicate their potential
to even more people. Driving, competing and having fun
are at the heart of motorsports, and I believe they fulfill an
important role in people’s lives.
Seimiya In the world of formula car racing, we havelaunched the SUPER FORMULA NEXT50 project to build
a sustainable motorsports industry. Toward the goal ofincreasing the percentage of renewable raw materials
used, YOKOHAMA is also taking on various challenges as
it goes through these steps. Demonstration testing in theworld of speeds exceeding 300 km/h is extremely valuable, and I think it plays a big part in moving technologicaldevelopment forward.
In the future, rather than testing existing things to takethem to the next level, I feel that we need to discoverentirely new things through motorsports. Of course, thereis the problem of cost barriers to feeding those technologies back into commercial tires, but I hope the different
teams can share their wisdom with each other.
Tateuchi I’m very glad that the people developing tires
understand the essence of motorsports. I’m certain thetires YOKOHAMA has developed will save the world.

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

How Autonomous Driving and Car Sharing May
Change the Role of Tires
Tateuchi In future society, I don’t think the phenomenonof vehicles driving through town will change that much,
but due to autonomous driving, I think the concept ofoperating a vehicle may change. I also think the conceptof owning a car may change due to car sharing. The
terms “driving” and “family car” could become things ofthe past. Under such circumstances, can you imagine
how tires may change?
Seimiya If autonomous driving and car sharing become
widely adopted, I think tires for passenger vehicles will
shift to being used like commercial tires in a sense. The
elements of enjoyment with respect to tires would be
reduced, but on the other hand, there would be needs formaintenance-free operation and sensing technologies,
and that could lead to the development of tires based ondata that has never been available until now. However, I
still think there will continue to be users who own cars andwho want to savor the joy of driving.
Tateuchi Those who operate vehicles in the future may
be part of a privileged class. Those who drive on circuits
could be a class of particularly lucky people. My personalview is that a society that loses the desire to move aroundwill end in ruin. I think we must not lose the sense of
excitement that comes from moving around.
Even so, tires will continue to be an integral component of vehicles. I believe that no matter how much carschange, shock absorbers, brakes and tires will be thethree aspects that survive.
Seimiya In terms of commercial tires, even in the worldof trucks and buses, the shift to EVs has advanced, andcommercial tires will continue to change to respond toneeds for improved fuel economy and environmental performance.

EV SIDE by SIDE, two-passenger electric formula car (2007 / Vehicle created in EV class forjunior high school students)(Photo courtesy of Japan Electric Vehicle Club, Photographer: Yasushi Miura)

Seimiya You mean creating a production car rather thana concept car?
Tateuchi The only manufacturer I know that is this passionate about energy and environmental issues related tocars is YOKOHAMA. In the future, it will be possible tocreate EVs without a factory, even for companies that are
not traditional auto makers. By developing a sports EV
equipped with ultra-high performance eco tires, you could
challenge the eco-car category at the 24 Hours of Le
Mans. I think it could spark dreams and courage in many
children.
Seimiya So you’re saying we should be looking that far
ahead in our work. As someone involved with cars, I feelthat there is a great deal of potential in EVs, so that prospect is something I want to think positively about.

Expectations of YOKOHAMA
Seimiya Due to the COVID-19 pandemic, YOKOHAMA
has also introduced remote work practices, but when it
comes to manufacturing, it is important to see, touch andexperience things in the field, and I think it is important tofind a balance in working styles.
Tateuchi There’s nothing like touching a car or tires. In
the Let’s Drive Electric Formula Cars!, EV classes for juniorhigh school students run by the Japan Electric Vehicle
Club, we disassemble and assemble two-passenger electric formula cars and test drive them on a circuit as part ofhands-on classes. There are high barriers to doing thiswith an engine-powered car, but motor-driven cars arecomparatively simple. How does YOKOHAMA feel about
creating a sports EV?
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Growth Strategies

Research & Development
Yokohama Rubber engages in multi-faceted and comprehensive research and development activities frommaterial design to product design, testing and evaluation along the themes of ingenuity, application and greater
sophistication of technologies, and has pursued the possibilities of various technologies and products, including
rubber polymer technologies.
In the development of tires, which play a vital role in safeguarding people’s lives, we always adopt a “people”
perspective and engage in diligent research that accounts for every aspect, including safety, drivability andcomfort. An enormous volume of data is obtained from testing facilities maintained by Yokohama including
the Daigo Proving-ground and Research Center (D-PARC) comprehensive tire test course, Tire Test Center ofAsia, the Tire Test Center of Hokkaido course for WINTER tires, and the Yokohama Test Center of Sweden.
This data is instantly transmitted to the Research and Development Integrated Center (RADIC) within the
Hiratsuka Factory located in Hiratsuka City, Kanagawa Prefecture, where it is used to improve tire performanceand develop next-generation tires. In addition, outside the field of tires we use innovative ideas unconstrainedby conventional thinking and cutting-edge technologies to pursue the development of new materials and thedesign of products with a view toward the next generation.

Major R&D Achievements of Recent Years
Winning an Award from the Society of Rubber Science andTechnology, Japan (SRIJ) for Research and Developmentof Rubber Materials Using Sustainable Resources
In May 2022, two engineers from Yokohama won the 34th SRIJAward from the Society of Rubber Science and Technology, Japanfor research and development of rubber materials using sustainable
resources. The research resulted from the Ultra High-Throughput
Design and Prototyping Technology for Ultra Advanced Materials
Development Project organized by the New Energy and Industrial
Technology Development Organization (NEDO). In January 2022,
the research was adopted under Development of Technology
for Manufacturing
Plastic Raw Materials
Using CO2, a Green
Innovation Fund Projectand development of thetechnology is ongoing.

Hiromu Saito, President of SRIJ (professor of Tokyo
University of Agriculture and Technology; pictured left)presents the commendation plaque to Yokohama
employee Misao Hiza24

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Development of a New Technology to Estimate the State of
Wear Based on In-Tire Sensing Waveforms
In April 2022, we developed a new technology that detects the stateof wear in a tire based on sensing waveforms in the tire while running.
Visualizing the state of wear in a tire enables tire maintenance thattakes into account safety, economy and the need to reduce environmental impact. The technology works by taking sensing waveforms
obtained from a sensor affixed to the inner surface of the tire that was
jointly developed with Alps Alpine Co., Ltd. and performing analysis
using proprietary signal processing technologies.
In February 2021, Yokohama announced its SensorTire Technology
Vision, its medium- and long-term technological development vision,and has conducted practical testing with various industries as a part ofthose activities.
Image of a sensor attached inside a tire(being developed with Alps Alpine)

Sensing image generated by tiresensorTire rotation direction

Sensing
waveform (image)Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Motorsports Activities
Yokohama takes part in a wide range of motorsports including races and rallies. We supply competition tires inJapan and overseas and have achieved spectacular results and outstanding achievements in each motorsport
category.
For example, YOKOHAMA tires have been fitted on both Toyota and Nissan entries in the SUPER GT GT500,
we have competed in the Nürburgring 24 Hours with the Walkenhorst Motorsport BMW customer racing team,and in off-road racing we have competed in series held in North America and Asia in efforts to strengthen the
ADVAN and GEOLANDAR brands.
These activities play a significant role in the development of high-performance consumer tires and in
the development of technologies for future tires. Motorsports are truly a spectacular proving ground for tiredevelopment.

Circular Economy Initiatives Pursued through Participation in Motorsports
Development of Racing Tires Utilizing Sustainable
Materials for the Japanese SUPER FORMULA
Championship
Yokohama has been the supplier of the control tire for the JapaneseSUPER FORMULA Championship series since 2016. For the 2023
series, Yokohama is pursuing development of a racing tire that uses
sustainable materials. The newly developed tire utilizes naturally
derived formulations such as silica produced from rice hulls and oil
produced from oil palm fruit and orange peel, and also reuses rubber
recycled from waste tires. By 2025, we aim for the percentage ofsustainable materials used in our tires to be at least 35%.

Racing tire under development that increases the percentage of sustainable materials usedTires with Sustainable Specifications Used in Hill Climb
Race in the US
At the 100th Pikes Peak International Hill Climb held in the UnitedStates in June 2022, the ADVAN A052 street sport tire which uses
sustainable materials was used.
The rubber in the side walls of these tires, which undergo themost deformation during driving, have been switched to biomassderived butadiene rubber from the conventional petroleum-derived
butadiene rubber. Going forward, we will continue to accelerate thedevelopment of technologies that reduce environmental impact
through actual participation in grueling hill climb races.

An EV that competed in the race equipped with
Biomass-derived butadiene rubber
ADVAN A052 tires, which use sustainable materials material

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25

Growth Strategies

Consumer Tires Business Strategy

Our Strategy Is to Maximize the Percentage ofHigh-Value-Added Products ADVAN, GEOLANDAR
and WINTER Tires.
We aim to increase the percentage that our three major high-value-added productbrands (ADVAN, GEOLANDAR and WINTER tires) account for from 40% in 2019 to
50% and are strengthening three initiatives to do so.

Takayoshi Omae General Manager, Head of Consumer Tire Product Planning Dept.
Key Measures
1

Expanding the fitting of ADVAN and
GEOLANDAR on new vehicles•Promote the fitting of these tires on new premium cars, which appeals to strong brandpower and technological capabilities, and produces high return effects in the replacement
market.

2

Strengthening of return sales and updateof products and sizes in the replacement
market•Strengthen return sales in the replacement market for delivered vehicles.
•Expand the size lineup of products including WINTER tires.

Product and regional business strategy•Strengthen sales of products in line with market trends in each region. We will expand salesof high-value-added products that reflect the characteristics of each market, focusing on
GEOLANDAR in North America, WINTER tires (studless tires) in Japan and ADVAN and
WINTER tires in Europe.

3

Results in Fiscal 2021 and Future Measures (Challenges)
Results

Future Measures (Challenges)

In 2021, we strengthened sales of WINTER tires based on a
“Winter Offensive” theme. In addition to WINTER tires, sales of
ADVAN, GEOLANDAR and 18 inch plus size tires also grew,
improving sales of AGW high-value-added products as a percentage of total sales.

In 2022, we will work to strengthen sales of summer tires with afocus on ADVAN based on a “Summer Offensive” theme.

•Japan: Release of iceGUARD 7 new studless tire for passenger vehicles•Europe: Full rollout of BluEarth *WINTER V906 European winter tires forpassenger vehicles•Europe: Release of BluEarth-Van All Season RY61, a new tire for commercial
vans•Europe and Japan: Expanded the range of sizes for BluEarth-4S AW21 allseason tire for passenger vehicles•Worldwide: Release of the global flagship tire ADVAN Sport V107
•Japan and other countries: Release of the high-performance street sport tire
ADVAN NEOVA AD09
•Japan and other countries: Release of the dedicated minivan fuel efficient tire
BluEarth-RV RV03 and the dedicated compact minivan and Kei tall wagon
fuel efficient tire BluEarth-RV RV03CKMain Products and Results in Fiscal 2021 and Fiscal 2022
Three Priority Product Lines

WINTER (26

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

etc.)

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Sales Ratio of Flagship Products (Results for Fiscal 2021, Plans for Fiscal 2022 and Fiscal 2023)
AGW Sales Ratio

ADVANGEOLANDAR

Fiscal 2021 Results

150%

143%

(vs 2019)

FY2022

FY2023

102%

117%

115%

111%

(vs 2019)

FY2022

FY2023145%(vs 2019)

FY2022

FY202341%

FY2019FY2020

FY2021FY2019FY2020

FY2021

Up 1% compared with fiscal 2019

AGW Sales Ratio

WINTER

Over 18 inches

Fiscal 2022 Plan

113%

114%

120%

(vs 2019)

124%

155%

42%
FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021Equipping on New Premium Cars, SUVs and EVs
Premium Cars
(2021) BMW M3/M4:
ADVAN Sport V107

(2022) BMW X5/X6:
ADVAN Sport V107

(2022) LEXUS LX:GEOLANDAR X-CV

(2021) TOYOTA LANDCRUISER: GEOLANDAR X-CV,
GEOLANDAR A/T(2022) Mercedes-AMG EQS 53 4MATIC +:ADVAN Sport V107

(2022) TOYOTA bZ4X:
ADVAN V61

SUVs

EVs

TOPICS
Release of iceGUARD 7 Studless Tire for
Passenger Cars (2021)

Release of the Global Flagship Tire
ADVAN Sport V107 (2022)

Release of the High-Performance Street Sport
Tire ADVAN NEOVA AD09 (2022)

Yokohama’s 7th generation studless tire, iceGUARD 7,
further improves the performance on ice that has consistently been pursued through the synergistic effects of a
special newly developed pattern and ultra water-absorbing compound, and in addition totire’s well-established long-lasting
effectiveness, performance on snow
has also been improved.
Performance on ice has been
improved by 14%, and performanceon snow has been increased by 3%compared with previous models.

Products target three premium car categories: premium highperformance cars, premium high-performance SUVs and premium EVs. We have refined our tires through joint developmentwith car manufacturers as well as at the Nürburgring circuit, tobe called the most unforgiving test coursein the world. We have already begun delivery for new vehicles, with a focus on special models for premium cars including the
Mercedes AMG and BMW M, and will use
this as a base of development for the size
expansion of replacement market.

Based on the concept of producing the strongest ADVAN
street sport tire with roots in motorsports and circuit driving, the latest iteration carries over the series’ greatest
feature of being “the fastest and most enjoyable,” producing a street tire that offers the ultimate in dry grip, controllability andanti-wear performance. The external
appearance has also been focusedon for custom tuning, producing astylish and highly original design.

* Performance data has been submitted to the Tire Fair Trade Council in Japan.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

27

Growth Strategies

Commercial Tires Business Strategy
TBR (Truck and Bus Tires) Business

Making YOKOHAMA TBR an Indispensable
Product LineWe Provide High-Quality Products and Services
that Reflect Customer Needs.
TBR is a product line expected to enjoy stable growth. We will focus on improving
supply capabilities to meet growth in demand while promoting the provision ofsolutions that utilize unique digital technologies.

Mitsuyuki Yumoto Associate Officer, Head of TBR Tire Div.
Key Measures
1

Providing solutions through unique digitaltechnologies•Solving customer issues through the expanded provision of the Tire Management System(TMS) that was revamped in 2020
•Providing support for tire inspections using unique digital technologies to address theissues of safety, cost and labor shortages facing the transportation industry

2

Actively releasing new products to themarket•Continue to launch low fuel consumption tires with the best levels of low rolling resistancein the industry in domestic and overseas markets•Continue to double the number of new products launched for each categories in three
regions: Japan, North America and Europe

3

Developing supply capabilities to meet
vigorous demand•We will continue to expand supply volume from overseas plants to serve the North
American and European markets, which are experiencing pronounced growth in demand.
•At plants in Japan, we will also invest in increased production for categories experiencing
growth in demand.

Results in Fiscal 2021 and Future Measures (Challenges)
Results

Future Measures (Challenges)•Sales in Japan and overseas grew at an annual rate of over 8%, turning thebusiness into one that can be profitable alongside growth.
•Through TMS, the number of vehicles undergoing tire inspections increasedby over 300% year on year, showing success in resolving customer issues.
•For the domestic market, the new flagship Comprehensive Performancecentric Studless Tire 904W was released.

•We will maximize supply volume at existing plants in Japan and overseas
using existing facilities, and also make investments in increased production
based on rising demand.
•We will further incorporate the latest technologies such as AI and continue tomake improvements to the tools for tire inspections through TMS.
•We will continue to release large-scaled products featuring studless design,fuel efficiency and high load resistance.

Major Commercial Tire Products

BluEarth 711L fuel efficiency andperformance-oriented all-season tire
for trucks

28

Tire inspections through TMS

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Tires for construction and industrial vehicles and agricultural and forestry machineryValue Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Off-Highway Tire Division

Leading Company’s Growth as Key Revenue andProfit Driver
We have consistently grown by around 10% annually in Off-Highway Tire (OHT)
after ATG acquisition in 2016. We are aiming to lead company’s future growthcontinuously through our entrepreneurial culture, superior products and costcompetitiveness.

Nitin Mantri Member of the Board, Managing Officer, Head of OHT Div.
Key Measures
1

Continue high growth•Adding OHT production capacity (Early launch of new Visakhapatnam plant in India)•Strengthen customer relationships

2

Continuous quality improvement•Design quality (Review product planning and design process)•Production quality (Upgrade production machinery and implement various improvement
initiatives)•Perceived quality (Improve product appearance etc.)

3

Business synergy realization•Multi-brand / multi channel strategy•Move to the top of the value brands

Results in Fiscal 2021 and Future Measures (Challenges)
Results

Future Measures (Challenges)•Despite COVID-19 second wave in India where we have major production
facilities, raw material cost increase and logistics disruption, we set newrecords for both sales and profit•Integrated Yokohama’s OHT business, ATG and Aichi tire under the name of
Yokohama Off-Highway Tires•Speedy production capacity increase to respond strong OHT demand•Developing unique products to respond various customer needs and bringing
into the market•Response to raw material cost increase and logistics disruption•Reaping synergies from OHT business integration

TOPIC
Acquisition of the Wheel Systems Business Producing and Selling Tires andOther Products for Agricultural Machinery and Industrial Vehicles from Trelleborg
In March 2022, we signed a share purchase agreement with Swedish company
Trelleborg AB to acquire all of the shares it held in the Swedish company Trelleborg
Wheel Systems Holding AB (TWS).
TWS operates a business manufacturing and selling tires and other products
for agricultural machinery and industrial vehicles. At the time of the acquisition,
TWS is estimated to have had a corporate value of 2.04 billion euros (approx.
265.2 billion yen at an exchange rate of 1 euro: 130 yen, using the performancebased earn-out method), with an EBITDA multiple of approximately 9x. The acquisition is expected to be completed in the second half of 2022.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 202229

Growth Strategies

Tire Production Strategy

Supporting Our Product and Regional Business
Strategies and Efforts to Maximize the Ratio of HighValue-Added Products, We Will Build a Production
and Logistics System that Is Resilient Against
Environmental Changes and Fluctuations in Orders.
To supply good quality products at a low cost and in a timely fashion to customers ineach region, we will exploit our strength in the multi-product lot production system
while innovating production efficiency with the use of digital technologies such as
IoT and AI and automation to supply highly competitive products worldwide.

Toru Nakamura Head of Tire Production Div., Member of the Board and Officer
Key Measures
1

Maximizing production of high-valueadded products ADVAN, GEOLANDAR and
WINTER tires•Exploit our strength in the multi-product lot production system.
•Minimize limitation on production integration constraints (capital investment).

2

Building a global production system in linewith regional business strategies•Fully utilize the capabilities of plants in each location around the world to develop local
production for local consumption.
•Maximize domestic production capabilities and shift to high-value-added products.
•Ensure stable production at the Mississippi TBR plant.

3

Promoting the digitization (IoT / AI) of
manufacturing•Visualize operations and streamline improvements in the field, thoroughly eliminate waste
and promote effective improvements and automation.

4

CSR management (plant operation)•Promote global education and accept foreign technical interns.
•Promote social contribution activities and carbon neutrality.

Results in Fiscal 2021 and Future Measures (Challenges)
Results

Future Measures (Challenges)•We maintained operations under the COVID-19 pandemic and logistics
disruptions, achieving total target production volume.
•Amid restrictions on movement, we strengthened operations on-site at ourdomestic plants and made specific improvements (capital investment) to thesize mix of high-value-added products.
•We responded to sharply rising raw material and energy costs, and achieveda record scrap ratio (down 23% year on year) by cutting down on material
costs and reducing scrap produced from defects. Waste production andenergy consumption was significantly reduced.

•We will maximize production capabilities at domestic plants and further
promote the shift to high-value-added products.
•We will roll out the IoT/BI model established domestically to overseas plants
in phases. Using this technology, we will reduce scrap produced from defects(industrial waste) even more thoroughly and promote reduced energy usage,
analyze trouble and work to streamline and speed up development work andother operations to innovate operations.
•We will launch a plan aimed at achieving complete carbon neutrality at amodel plant (Shinshiro-Minami Plant).

■ Product and Regional Business Strategies (Consumer Tires)■ Developing Infrastructure for the Utilization of Manufacturing

Data and Fostering a Data-Driven Culture
RussiaWINTER

EuropeUHP,
WINTERADVANWINTER

North America

China

SUVs,
Pickup trucks
GEOLANDAR

Japan

UHP, CUVADVAN,GEOLANDAR

Connect

WINTER

Analyze/
Utilize

Asia

GEOLANDAR

150%(vs 2019)

2018 2019 2020

30

Visualize

2018 2019 2020

Over 18 inches120%(vs 2019)

2023

Analysis

2018 2019 2020

IoT data

155%(vs 2019)

2023

Improvement

Use of BI
WINTER115%

Use of AI

Exploitation

UHP,
Pickup trucks
ADVAN, GEOLANDARADVAN

Exploitation

Innovations in
production efficiency(vs 2019)

2023

2018 2019 2020

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

2023

Developing the environment:
data infrastructure

Visualization

Manufacturing IoT Promotion Project

Developing people: cultivating humanresources to utilize dataValue Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

MB (Multiple Business) Business Strategy

Shift Portfolio to Products with Highly Stable
Earnings and Strong Growth Potential.
Based on the strategy of shifting the portfolio to products with highly stableearnings and strong growth potential declared in the YX2023 Medium-Term
Management Plan, we will drive the growth of the MB business and establish a
structure that can ensure stable earnings by concentrating resources in the Hoseand Couplings business and Industrial Products business.

Yasuo Nakayama Head of MB Div., Member of the Board and Officer
Key Measures
1

Hose and Couplings•Hydraulic hoses: Further expand market presence.
•Automotive hoses: Drive growth with new technologies in response to CASE.
•Strengthen efforts toward a hydrogen-based society (hydrogen dispenser hoses).

2

Industrial Products•Conveyor belts: Establish a dominant presence in core-strength markets.
•Marine products: Maintain high market share and strengthen production bases.

3

Aerospace Products•Decisively implement structural reforms that reflect the business environment.

Results in Fiscal 2021 and Future Measures (Challenges)
Results

Future Measures (Challenges)

Hose and Couplings

Hose and Couplings•To cater to brisk demand for hydraulic hoses in the Chinese market, we
decided to invest in increased production at production sites in China.
•Sales of hydraulic hoses mainly for construction machinery were strong.
•We succeeded in significantly reducing the weight of automotive air
conditioning hoses with the use of rubber and resin polymer alloys.

•We decided to invest in increased production at the Ibaraki Plant to swiftly
respond to further increases in demand for hydraulic hoses.
•We have restructured the production system for the automotive hosebusiness in the United States and Mexico.

Industrial Products•We released the Flame GUARD Super 100 flame retardant conveyor belt withhigh temperature heat resistance.
•Conveyor belt got increased sales due to the strengthening of domestic
sales.

Aerospace Products•The contract with Boeing to supply water tanks for drinking water was
renewed.

Industrial Products•To respond to the changing market environment, we decided to increase
production capacity for conveyor belts at the Hiratsuka Factory.
•We began field demonstration tests of sensing systems to be installed inconveyor belts and marine hoses.

Aerospace Products•With the aim of securing stable earnings, this has been integrated with theIndustrial Products Div., which is highly compatible in terms of technology
and skills, and we are striving to create synergies.

Hamatite•Transfer of the Hamatite business to the Sika Group was completed in
November 2021.

Major Products of the MB BusinessHydraulichoses fitted toconstruction
machinery

Conveyorbelts that
demonstrate
exceptional
heat resistance
performanceand durability

Marinehoses for oiltransportation

Water tanks
installed incommercial
aircraft

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 202231

Growth Strategies

PRGR (Pro Gear) Business Strategy

We Provide Excellent Products and Services
Grounded in a Customer Perspective so that
People Can Experience the Fun and Joy of Golf.
To provide excellent products and services, we will strengthen marketing, explore
new technologies and pursue business activities based on transparent health andsafety and compliance, aiming to sustainably enhance corporate value to create aprosperous society.

Hiroyoshi Hibino President of PRGR Co., Ltd.
Key Measures
1

Building a product lineup and enhancing
product power•Building a product lineup that matches respective user needs domestically and overseas•Exploring user needs and achieving the required performance in products

2Marketing activities•Strengthening promotion and services utilizing digital technologies•Expanding and enhancing unique services at directly operated stores and utilizing test
hitting data in product planning and development

3

Improving profitability•Ongoing business cost optimization•Optimization of the number of products rolled out and inventory turnover rate
•Improvements to fixed production costs and SG&A expenses through activities to eliminate
waste

Major New Products
RS JUST Series: Released inJuly 2022 for Athlete Golfers
Innovative design that pushes thelimits and the 4-point concentrated
face for higher initial velocity andoptimum amount of spin achieves
even further ball flight distance.

Lineup:Drivers (three types),
Fairways (3W, 5W, 7W),
Utilities (#3, #4, #5)

32

PRGR IRONS Series: Phased
Release from August 2020 toMarch 2022 for Athlete to
Average Golfers
The PRGR IRONS series thoroughly
pursues the ease of stance, hitting
feel, distance performance,
controllability and forgivenessrequired of irons for each targeted
golfer.
Released Models:
00, 01, 02, 03, 05

LS Series: Released in June
2021 for Average Golfers

SWEEP Series: Released in
May 2022 for Female Golfers

At the head speed generated byaverage golfers (average 40 m/s),balls travel further due to a higher
initial velocity from the precise design,and optimized amount of ball spinand hitting angle.

Due to a club design developed
especially for women, at the head
speed generated by female golfers(average of 30 m/s), the ball can be
hit gently and achieve greater
distance.

Lineup:Driver, Fairways (3W, 5W),
Utilities (#4, #5)

Lineup:Driver, Fairways (4W, 7W),
Utilities (#5, #6), Iron Set, Putter

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Digital Strategy

To Enhance Our Corporate Value, We Will Drive
Enhanced Customer Value, Sustainable Process
Innovation and Reforms to Corporate Culture Aimed atFurther Growth with the Use of Digital Technologies.
Based on the HAICoLaB* data utilization framework, we will make use of digitaltechnologies to reform processes and strengthen competitiveness as “Exploitation,”and expand services, promote work style reforms and drive a transformation aimed
at sustainable growth as “Exploration.”* A coined term based on “Humans and AI collaborate for digital innovation,” which also implies a joint research laboratory made up of people and AI (data/digital).

Masaki Nakamura Associate Officer, Head of IT & Management System Planning Div.
Key Measures
1

Exploitation:
Process reforms to improve competitiveness•Digital technology transfer and greater sophistication in product development, andexpansion of production improvement activities through the digitalization of manufacturing•Streamlining and labor saving through the promotion of logistics DX and structural reforms
to domestic sales

2

Exploration:
Creating customer value (services)•Utilizing the expertise cultivated with TMS to streamline tire inspections and expand uniqueinspection services utilizing big data
•Providing the information gained through demonstration testing to drivers and various
business operators, sustainably contributing to safe and secure driving

Promoting work style reforms•Taking advantage of the relocation of the head office to develop an environment thatfacilitates swift decision making and enables individuals and the organization to fully
demonstrate their potential•Improving productivity and achieving a shift to value creation through automation,
streamlining and more in-depth communication

3

Results in Fiscal 2021 and Future Measures (Challenges)
Results

Future Measures (Challenges)•We have independently developed a compound development and tiredevelopment system equipped with an AI engine and begun its practicalapplication in tire design.
•We have started to collect and analyze data from production equipment using
IoT as part of process improvement efforts.
•We have accumulated data from the demonstration testing of TMS and TPRS
and are promoting utilization of the data for new solutions.
•We have boosted productivity through RPA, workflow development, paper
reduction and other initiatives, and are promoting the shift to working styles
that utilize digital technologies.

•By rollout out warehouse management systems across the organization, we
will achieve traceability throughout the domestic supply chain by 2023.
•We will create new product value by making use of digital technologies suchas AI and IoT, while working to increase the speed and reduce the costs ofdevelopment.
•Based on the results obtained from demonstration testing, we will work toestablish business models that contribute to safety and economy and strive
to expand and enhance our services.
•To coincide with the relocation of the head office, we will promote swift
decision making and accommodate satellite office and home office schemes.

TOPIC

Transportation businesses

TMS Tire Management System
Since the TMS service was launched in 2003, it has been utilized by 3,000 companies
for a total of 30,000 vehicles as of June 2022. Due to environmental changes in thetransportation industry (labor-saving action, etc.), the number of customers using theservice has increased. Regular improvements are made to ensure swift and accurate
inspections, and this has also enabled suggestions for tire utilization based on data
accumulated by Yokohama over many years. The data can be utilized not only to facilitate safe driving and optimize costs but also for measures to address environmental
issues.

Improved
efficiency

Safe driving
Monitoring
data

Sales
services

Real-timedata

Tire operating
plan

Tire
inspection

Analysis
data

Development
and marketing

Retread unit tire
determination

Retreadtires

New tireproducts

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

33

Growth Strategies

Message from the Chief Financial Officer

Yokohama Achieved Record
Highs in Both Sales and Profit.
The Yokohama Rubber Group has made steady progress towards
achieving the targets laid out in the Yokohama Transformation
2023 (YX2023) Medium-Term Management Plan.

Gota Matsuo Member of the Board and Managing Officer

Chief Financial Officer, Head of Corporate Administration Div., in charge of Corporate Finance &Accounting Dept., Head of CSR Div., in charge of IT & Management System Planning Div.,
President of Yokohamagomu Finance Co., Ltd., in charge of PRGR

Record highs were achieved in every metric. Sales revenue for the Yokohama Group in fiscal 2021 on an ongoing businessbasis excluding the Hamatite business* was ¥670,809 million (an increase of 21.7% year on year). On the profit front, business profit stood at ¥62,162 million (up 73.3%), with operating profit of ¥83,636 million (up 132.4%) in part from recording
a gain on the transfer of the head office building. Profit attributable to owners of parent amounted to ¥65,500 million (a148.9% year-on-year increase). Our core tire business was impacted by various factors including sharply rising raw material
prices and logistics expenses, disruptions to international logistics networks and the COVID-19 pandemic, but both sales
and profit increased due to price hikes taking root mainly in North America, and the continuing weakening of the Japaneseyen.
* Due to the signing of an agreement with the Swiss-based Sika AG on the transfer of the Hamatite business on April 28, 2021, the Hamatite business was classified as a
discontinued operation, and the reclassification was also made retroactively for the same period of the previous year. The transfer of the Hamatite business was completed inaccordance with the above agreement on November 1, 2021.

Financial & Non-Financial Highlights

Financial Highlights
Sales Revenue¥

Business Profit

670,809¥

millionBusiness Profit Margin

62,162Business Profit%

Business Profit Margin(Millions of yen)

(Millions of yen)(%)

900,000

90,00015

646,272

650,239

650,462

600,000

670,809551,090

60,00058,26559,2579.0

050,12936,799
6.5
7.7

9.1

30,000300,000

FY2017FY2018FY2019FY2019FY2021

Sales revenue increased 21.7% year on year to ¥670,809 million, reflecting pricehikes taking root in the tire business primarily in North America, and the ongoing
depreciation of the yen.

34

9.3

millionTHE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

0

FY2017FY2018FY2019FY202062,1629.3

105

FY20210

Business profit increased 68.9% year on year to ¥62,162 million, in part reflecting again on the transfer of the head office building, in addition to growth in overseas tire
sales. The business profit margin rose 2.8 points year on year to 9.3%.

Value Creation Stories

Profit Attributable to
Owners of Parent

65,500¥Financial & Non-Financial Highlights

Growth Strategies

ROE(Return on Equity)*1

13.9

millionProfit Attributable to Owners of Parent%

90,00010.6

9.5

60,00039,97513.9

35,623

41,971

Cash Dividends
per Share¥¥

276.40

(%)

(Yen)

15

300

10

65,5006.2

30,0000FY2017FY2018FY2019FY2020249.32

100¥

984,988

ROA(Return on Assets)*3

7.1

millionTotal Assets

27.9

24.5

62.00

62.00

64.00

FY2017¥525,312(Millions of yen)

1,200,000

15

600,000

984,988105FY2017FY2018FY20200

FY2021

53.3

million

%

(%)

53.3

48.3

46.2

43.7

400,000

7.1
4.8

15

65.00

64.00

Ratio of Equity Attributableto Owners of Parent*4

379,778 374,027

400,000

23.5

Total Equity Attributable to Owners of Parent
Ratio of Equity Attributable to Owners of Parent

41.2

800,00030

164.09FY201945

Note: Net income per share and the consolidated payout ratio in fiscal 2021 are calculated based on an amountthat excludes extraordinary factors such as the sales of the head office and the Hamatite business.

ROA (Return on Assets)

4.0

FY2018(%)

276.40Net income per share was ¥276.40, an increase of ¥112.31 year on year.
Cash dividends per share were ¥65.0, a ¥1 year-on-year increase. The consolidated
payout ratio was 23.5%, a year-on-year decrease of 15.5 points.

(%)

0222.12

24.9(Millions of yen)

4.4

39.0

261.61

Total Equity Attributableto Owners of Parent%

920,776 855,812 907,560 860,372%*2 Consolidated payout ratio = Cash dividends per share / Net income per share

Profit attributable to owners of parent rose 148.9% year on year, to ¥65,500 million.
ROE (return on equity attributable to owners of parent) rose 7.7 points year on year
to 13.9%.

Total Assets

00

FY2021

Consolidated
Payout Ratio*2

65.00 23.5

200

5Data Section

Net Income per Share
Cash Dividends per Share
Consolidated Payout Ratio

25,945*1 ROE (Return on equity) = Profit attributable to owners of parent / Average* total equity attributable toowners of the parent × 100* Simple average of amounts at beginning and end of year

Corporate GovernanceNet Income per
Share

ROE (Return on Equity)(Millions of yen)

11.1

Initiatives of Sustainability

60

525,31240

418,893 415,547

200,000

20

2.9

FY2019FY20200

0

FY2021FY2017FY2018FY2019FY20200

FY2021*3 ROA (Return on assets) = Profit attributable to owners of parent / Average* total, Total assets × 100* Simple average of amounts at beginning and end of year

*4 Ratio of equity attributable to owners of parent = Total equity attributable to owners of the parent / Total
assets×100

Total assets increased ¥124,616 million compared with the end of the previous fiscal
year to ¥984,988 million due to an increase in inventories. Return on assets (ROA)
increased 4.2 points year on year to 7.1%.

Equity attributable to owners of parent rose ¥109,765 million compared with the endof the previous fiscal year to ¥525,312 million due to an increase in other components of equity. The ratio of equity attributable to owners of parent increased 5.0
points year on year to 53.3%.

Interest-bearing Debt

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Free Cash Flows*6

¥

¥

¥

¥

177,234

D/E Ratio(Debt-to-equity ratio)*5

0.34

millionInterest-bearing Debt

times

million(Times)450,000

1.5

315,5540.83

150,000

0

FY2017(Millions of yen)

90,00060,000260,387 239,870
0.70

FY20181.0

207,825

0.57
FY2019177,234

FY202030,0000.34–30,000–60,000

FY2021

82,82160,46630,720

millionCash Flows from Investing Activities

39,68775,37431,73678,29450,429

0
0.5

0.50

millionCash Flows from Operating Activities

D/E Ratio (Debt-to-equity ratio)(Millions of yen)

300,000

68,303 –4,479 63,824

0Free Cash Flows

68,30363,824–4,479–29,746
FY2017–43,134–43,638

FY2018FY2019–27,865
FY2020

FY2021*5 D/E ratio (Debt-to-equity ratio) = Interest-bearing debt / Total equity attributable to owners of the parent*6 Free cash flow = Cash flows from operating activities - Cash flows from investing activities

Interest-bearing debt as a percentage of total assets of the Yokohama Group was
18.0% (as of December 31, 2021). The debt-to-equity ratio (D/E ratio) declined 0.16
points to 0.34 times.

Net cash provided by operating activities was ¥68,303 million, mainly due to anincrease in profit before tax. Net cash used in investing activities was ¥4,479 million,
chiefly due to purchases of property, plant and equipment. Free cash flows stood at¥63,824 million.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

35

Financial & Non-Financial Highlights

Non-Financial Highlights

Greenhouse Gas Emissions (Scope 1-2) (Consolidated)

Greenhouse Gas Emissions (Scope 3) (Consolidated)

1,099

25,701(t)

tons

Greenhouse Gas Emissions (Scope 1)
Basic Unit of Consolidated Sales

1,200

800

400

362
0

0.001

FY2017371(t/Millions of yen)

1,052
469

720
349

716
354

Greenhouse Gas Emissions (Scope 2)

0.002
583

0.001

FY2018

1,099
486

986
451

613

30,0000.002

20,0000.001

10,00022,055

FY2020

FY20210(t/Millions of yen)

24,155

22,58025,701

0.03

0.02

0.01

0.036
FY2019Basic Unit of Consolidated Sales

0

FY2017

0.037

0.034
FY2018FY20190.041
FY20200.038
0FY2021

Greenhouse gas emissions (Scope 1 and Scope 2) increased year on year, with
Scope 1 emissions rising 15% and Scope 2 emissions rising 8% due to growth inproduction and sales overseas in particular. Emissions per unit of sales improved 8%
year on year for Scope 1 + Scope 2.

Greenhouse gas emissions (Scope 3) increased 14% year on year due to growth inproduction and sales overseas in particular. Emissions per unit of sales improved 6%
year on year.

Total Energy Consumption (Consolidated)

Total Water Intake (Consolidated)

1,858,043

8,494

(MWh)

1,400,000

700,0000MWhTotal Energy Consumption(Consolidated)

2,100,000

Basic Unit of Consolidated Sales

1,787,203 1,678,571

1,858,043

1,353,082 1,333,451
2.748
2.094
FY2017FY2019FY20206

12,000

4

8,000

2

4,000

FY20210

0

Basic Unit of Consolidated Sales(Thousand t)

60,00053,04452,56443,991(Thousand t /Millions of yen)

(%)

0.3

60

48,27552,55840,00020,0000.068
0FY20170.082
FY20180.081
FY2019

0.03

8,266

8,102

8,718

0.013
FY2017

0.013

0.012
FY2018

0.078

0.088

FY2019FY2020

FY2021

0.2

40

0.1

20

0

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

8,494
0.02

0.013

0.015

FY2020

FY20210.01

0Number of Production Sites
Implementing Biodiversity
Conservation Activities

0

21

%

sites

Biodiversity Conservation Activity Implementation Rate at Production Site
Number of Production Sites Implementing Biodiversity Conservation Activities (sites)

49

47

43

Total waste volume rose 9% year on year.
Waste volume per unit of sales improved significantly by 11% year on year due toimproved yield from truck and bus tires.

8,036

Total water intake rose 6% year on year due to growth in production and sales
overseas in particular. Water intake per unit of sales improved 13% year on year.

50

thousand tons

Total Waste Volume (Consolidated)(Thousand m3/Millions of yen)

Biodiversity Conservation
Activity Implementation Rateat Production Sites

Total Waste Volume (Consolidated)

52,558

Basic Unit of Consolidated Sales(Thousand m3)

2.770

3.046

2.051
FY2018thousand m3

Total Water Intake (Consolidated)(MWh/Millions of yen)

Total energy consumption rose 11% year on year, due to growth in production andsales overseas in particular. Consumption per unit of sales improved significantly by
9% year on year.

36

Greenhouse Gas Emissions(Scope 3)(t)

23,237

0.002

0.002
535

0.003

tons

18

20

21

30

50

49
21

21

20

10

FY2017FY2018FY2019FY2020

FY20210

The percentage of production sites implementing biodiversity conservation activities
improved 1 point year on year.
The number of production sites remains unchanged year on year partly due to theconsolidation of production sites.

Value Creation Stories

Growth Strategies

Cumulative Number of Trees Planted or
Saplings Provided under YOKOHAMA
Forever Forest Activities

1,089,655(Trees)1,200,000

trees

Cumulative CO2
Absorption and
Fixation Volume

1,576

853,047

943,788858

tons

400,000

FY2017FY2018600

20FY2019FY202012.0

FY20210%

Percentage of Female Employees (Consolidated)
Percentage of Managerial Positions Filled by Women (Consolidated)

(%)

15

Percentage of Managerial
Positions Filled by Women(Consolidated)

8.53

%

12.7

13.7

13.5

12.1

12.0

0

7.47

7.98

8.06

FY2017FY2018FY20197.36

FY2020

Data Section

Percentage of Women Employed in Comprehensive Work Positions(Non-Consolidated)

34

40

0

FY2017

8.53

FY202137

FY20184131

FY201925

FY2020

FY2021The percentage of women employed in comprehensive work positions(non-consolidated) improved 16 points year on year.

Number of Eligible Employees Taking Child Care Leave(Non-Consolidated)

237(Employees)

300

employees

Child Care Leave A (child less than one year old
or up to two years old under certain conditions)

251

247

221

212

200

10

5

Corporate Governance

%

(%)

60

1,800

The cumulative number of trees planted or saplings provided through YOKOHAMA
Forever Forest activities increased 5% year on year to 1,089,655.
CO2 absorption and fixation volume rose 16% year on year to a cumulative 1,576
tons.

Percentage of Female
Employees (Consolidated)41

1,039,318 1,089,655
1,576
1,358
1,200
1,173

997,401

1,009

Initiatives of Sustainability

Percentage of Women Employed in Comprehensive Work
Positions (Non-Consolidated)

Cumulative Number of Trees Planted or Saplings Provided under YOKOHAMA
Forever Forest Activities(t)
Cumulative CO2 Absorption and Fixation Volume

800,000

0

Financial & Non-Financial Highlights

265
228

Child Care Leave B(maternity leave)

248

237

208

202

100

0

30

35

37

40

35

FY2017FY2018FY2019FY2020

FY2021The percentage of female employees (consolidated) declined 0.1 point year on year.
The percentage of managerial positions filled by women (consolidated) increased
1.17 points year on year.

The practice of taking Child Care Leave B which can be taken starting from one day
has also taken root among male employees, and the number of employees who
took child care leave totaled 237.

Rate of Lost-Worktime Injuries (Consolidated)

Employment Rate of People with Disabilities (Domestic)*7

0.20

2.59

million hours
Rate of Lost-Worktime Injuries (Consolidated)
Domestic Rate Of Lost-Worktime Injuries
Overseas Rate Of Lost-Worktime Injuries(Million hours)

0.9

Employment Rate of People with Disabilities (Domestic)
(%)

3

0.64
0.6

0.3

0.50
0.23

0

FY2017

0.39
0.36
0.30
FY2018

%

2.28

2.18

FY2017FY2018

2.44

2.54

2.59

FY2019FY2020

FY2021

2

0.30
0.26
0.24
FY2019

0.31
0.20
0.15
FY2020

0.45
0.20
0.15
FY2021

As a result of ongoing efforts to reduce the rate of lost-worktime injuries globally, therate was maintained at 0.20.

1

0*7 Four companies, The Yokohama Rubber Co., Ltd., Yokohama Peer Support Co., Ltd., Yokohama Tire
Japan Co., Ltd., Yokohama Industrial Products Japan Co., Ltd.

As a result of promoting the hiring of people with disabilities, the employment rate ofpersons with disabilities (domestic) rose 0.05 point year on year.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

37

Initiatives of Sustainability

Yokohama Rubber’s Sustainability
In 2008, Yokohama Rubber developed the CSR Management Vision and CSR Action Guidelines to promote CSR
and sustainability management, and established the CSR Div. as the responsible division, as well as the CSR andEnvironmental Promotion Council (currently the CSR Council) chaired by the President, Chairman of the Board,
to oversee CSR management. In 2014, based on the four areas and 10 principles of the United Nations Global
Compact* and other international norms, we established the Yokohama Rubber Group Action Guideline, identified
themes that have a significant impact on or are of high interest to both Yokohama and its stakeholders as material
issues and iterated on the PDCA cycle while making continuous improvements to achieve those goals. In 2017,
our 100th anniversary, we developed a CSR slogan, and have been aiming to achieve sustainable growth over the
next 100 years in order to contribute to the realization of a sustainable society through our business activities.
* The United Nations Global Compact is the world’s largest sustainability initiative in which the UN and the private sector join forces to build a healthy global society and requires participating companies to put into
practice the Ten Principles in the four areas of human rights, labour, the environment and anti-corruption.

CSR Management Vision

CSR Action Guidelines(Developed 2008)(Developed 2008)“To build a trusted identity as
a contributing member of the
global community.”•Identify continually changing
social trends.
•Ascertain the items that cancontribute.
•Act swiftly to earn affirm trust.
•Practice CSR in one’s own work.

Yokohama Rubber Group Action
Guideline* (Developed 2014)•We shall respect human rights inside andoutside the company.
•We shall create workplaces that are safeand healthy.
•We shall harmonize our activities with theglobal environment.
•We shall provide safe and high-quality
products and services.
•We shall conduct corporate activities witha high transparency and practice proper
disclosure of information.
•We shall observe not only laws andregulations but also social norms.
•We shall aspire to harmony and prosperity
with local communities.

CSR Slogan(Developed 2017)“Caring for the Future”* Only items listed. See the Yokohama website fordetails.
https://www.y-yokohama.com/global/csr/feature/

Process for Identifying Important Issues (Materiality)
Towards complying with Version 4 of the Global Reporting Initiative Guidelines (G4), the international guidelines for sustainability reporting,in 2014 Yokohama identified important issues (material aspects) in light of internal discussion and stakeholder feedback. Reviews of theseimportant issues were undertaken in 2017 and 2020 in response to environmental changes and other developments, and we will continue
to make revisions as needed in the future.
STEP 1 G4 Gap Analysis

STEP 3 Reflecting External Perspectives in the Priority of Issues

We referenced the G4 demands in relation to current information disclosure levels in
CSR Report 2013 and ascertained the current status of compliant and noncompliant items. (Implemented January 2014)

Interviews were conducted with five stakeholders. Based on the results of theinterviews, priorities were determined from each aspect. (Implemented February to
March 2014)

STEP 2 Prioritizing Issues

STEP 4 Determining Important Issues

An analysis was conducted in accordance with the industries, business sectors andregions in which Yokohama operates. Following the analysis, priorities were assigned
to the issues at Yokohama through discussions with related business units.
(Implemented January to February 2014)

In light of the degree of importance analysis, research and discussions conducted insteps 2 and 3, the important issues were determined in 2014.

■ Important Issues (Materiality) (Determined in 2014, Revised in 2017 and 2020)

38

Products

Deliver enjoyment and peace of mind.

The Earth

Leave a sound environment to future
generations.

PeopleBuild on each other’s strengths.

Community

Earn the confidence of our neighbors.

Corporate
GovernanceLay a solid foundation for fulfilling social
expectations.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

CSR and Sustainability Promotion System
The CSR Council, which is chaired by the President, Chairman of the Board and attended by all executive members of the Board and Audit andSupervisory Board members, convenes twice a year (in May and November), and is positioned to draft and consider matters concerning the CSR
issues (environment, occupational health and safety, disaster prevention, quality, compliance, social contribution, etc.) to be addressed by the
Yokohama Group. The Environment Council, Central Health and Safety Committee, Central Disaster Prevention Council, Corporate Compliance
Committee and other meeting bodies have been established to formulate and consider action on individual CSR issues, and to formulate andimplement more detailed plans and measures. In addition, those CSR issues that are of a serious and urgent nature are handled in coordination
with the Risk Management Committee.
■ CSR and Sustainability Promotion Structure

Board of Directors
President, Chairman of the Board
Management Meeting
Risk Management Committee C hairman: Head of Corporate

CSR Council Chairman: President, Chairman of the Board

Administration Div.

Environment Council

Chairman: Head of CSR Div.

Central Safety and Health Committee Chairman: Head of CSR Div.
Central Disaster Prevention Council

Chairman: Head of CSR Div.

Corporate Compliance Committee

Chairman: Officer of CSR Div.

Material Issues (Materiality) and Improving Medium-to-Long-Term Corporate Value
Based on its CSR slogan of “Caring for the Future,” Yokohama links the five Material Issues of “Products,” “The Earth,” “People,” “Community”
and “Corporate Governance” with its business strategy, and in keeping with its Basic Philosophy, “To enrich people’s lives and contribute to theirgreater happiness and well-being by devoting our wholehearted energies and advanced technology to the creation of beneficial products.”
In addition to initiatives aimed at carbon neutrality and the circular economy, we tackle all important issues under ESG, including biodiversity,
social contribution, coexistence with local communities, respect for human rights, diversity and corporate governance, and link these efforts withthe sustainable improvement of corporate value.
Basic Philosophy: To enrich people’s lives and contribute to their greater happiness and well-being by
devoting our wholehearted energies and advanced technology to the creation of beneficial products.
The Earth

Carbon neutrality

Products

Leave a sound environment to future
generations

Zero CO2 emissions from the production of OE tires

Deliver fun and peace of mind

•Biodiversity conservation•Corporate contribution

Circular economy

Community

Coexistence with nature

Earn the confidence of our neighbors

PeopleBuild on each other’s strengths

Provide high-value-addedHigh quality +High performance +Sustainability

Expand use of sustainable materials in motorsports tires•YOKOHAMA Forever Forest•Support for sustainable naturel rubber procurement•Respect for human rights•Diversity & inclusion•Work-style reforms•Staff training•Employees’
health & safety

Corporate GovernanceLay a solid foundation for fulfillingsocial expectations•Medium-term performance-linked
remuneration system•Diverse Board of Directors•Stronger risk management•Stronger compliance system

TOPIC
Selected as a Constituent Stock of the FTSE Blossom Japan Sector Relative Index
Yokohama was selected as a constituent stock of the FTSE
Blossom Japan Sector Relative Index, an equity index designed toreflect the performance of Japanese companies that demonstratestrong environmental, social and governance (ESG) practices.
This index has been selected by Japan’s Government Pension
Investment Fund (GPIF) as one of the indices that guide its ESGbased investments.

Yokohama is also a constituent stock in two other ESG indicesused by the GPIF to guide its investment in Japanese companies—the FTSE Blossom Japan Index, in which Yokohama has
been a constituent for five straight years, and the S&P/JPX Carbon
Efficient Index. The Company’s stock has also been included in the
FTSE4Good Index Series, a global family of ESG-based investment indices, for 17 consecutive years.

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39

Initiatives of Sustainability

People I (Respect for Human Rights, Diversity & Inclusion)
Yokohama Rubber respects human rights both internally and externally and develops employee-friendly
environments in which everyone can be safe and secure. We aim to be a company in which people can fully
demonstrate their abilities, regardless of gender, nationality, age or other attributes.

Respect for Human Rights
Basic Approach

Respect for International Human Rights Norms

Human rights are fundamental rights afforded to all people,
and since the Yokohama Rubber Group’s businessinvolves a very large number of people through its supply
chain, there are a wide range of human rights that must be
respected. With the globalization of our business activities,
our interactions with various people have increased, andthe possibility of direct or indirect impact on human rights
violations has also increased.
For this reason, we believe it is important to fulfill our
responsibility to respect human rights while taking into
consideration the scope of such impact. Accordingly, we
have established the Yokohama Rubber Group Action
Guidelines to indicate our internal and external efforts torespect human rights and to define the actions to be taken
by our employees.
Furthermore, based on the United Nations Guiding
Principles on Business and Human Rights*, we have formulated the Yokohama Rubber Group Human Rights Policy
and are promoting initiatives aimed at respecting the humanrights of all people involved in our business activities.
The Yokohama Group recognizes the importance of
implementing Group-wide efforts to respect human rights
as the basis of our business activities in order to contributeto the realization of a sustainable society as a company
that is widely trusted by society.

The Yokohama Group supports and respects theInternational Bill of Human Rights, which includes theUnited Nations Universal Declaration of Human Rights that
stipulates the fundamental human rights equally entitled to;
the Guiding Principles on Business and Human Rights; theInternational Labor Organization (ILO) Declaration on
Fundamental Principles and Rights at Work, which stipulates fundamental labor rights (freedom of association, theright to collective bargaining, prohibition on forced labor,
effective abolition of child labor and the elimination of discrimination in employment and occupations); and the ILO
MNE Declaration (Tripartite Declaration of Principles
Concerning Multinational Enterprises and Social Policy).
Note that the Yokohama Rubber Group Human Rights
Policy has been formulated based on the United Nations
Guiding Principles on Business and Human Rights.

* The Guiding Principles on Business and Human Rights were approved by the United
Nations Human Rights Council in 2011 as a framework for respect for human rights
applicable to all nations and all companies. The Guiding Principles place “theresponsibility of companies to respect human rights” as an important pillar of the
Guiding Principles, along with “the obligation of states to protect human rights.”

Major Human Rights Issues(Established on April 2022)

1. Positioning of the Human Rights Policy
2. Respect Human Rights
3. Implementation of Human Rights Due Diligence
4. Issues Related to Human Rights
5. Grievance Mechanisms
6. Education
7. Information Disclosure* Only items listed. See the Yokohama website for details.

WEB■ The Yokohama Rubber Group Human Rights Policy

https://www.y-yokohama.com/global/csr/people/human_rights/policy/

The Yokohama Group has identified the following six issues as major human rights issues related to its
business activities and works to take corrective action to prevent or mitigate their adverse impacts.

1. Discrimination
The Yokohama Group does not, under any circumstances, engage in any form of
discrimination on the basis of nationality, race, ethnicity, gender, age, disability,
social background, gender identity, sexual orientation, political views or otherwise.
2. Harassment
The Yokohama Group does not tolerate conduct that unreasonably harms the
dignity of workers or any form of harassment, whether mental or physical.
3. Forced labor and child labor
The Yokohama Group does not tolerate any form of modern slavery in its businessactivities in any country or region, including child labor below the working age
stipulated by the laws of the relevant country, forced labor and human trafficking.

40•The Yokohama Rubber Group Human Rights Policy

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

4. Freedom of association and right to collective bargaining
The Yokohama Group respects the rights granted to workers including freedom of
association and the right to collective bargaining, and endeavors to build, maintainand improve trust and healthy cooperative relationships through a dialogue
between labor and management.
5. Occupational health and safety
We regard health and safety as the basis of everything we do, and make every
effort to prevent occupational accidents and create a workplace that is healthy andcomfortable both mentally and physically.
6. Impact on local communities
The Yokohama Group acknowledges that there are matters concerning land rights,
water management, the rights of indigenous peoples and other issues in the local
communities that are affected by its business activities. In the local communities inwhich we operate, we will fulfill our responsibilities to respect human rights andaim to make sustainable contributions to the community.

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Diversity & Inclusion
Basic Approach
Yokohama aims to create an employee-friendly environment where employees can fully demonstrate their abilities,
regardless of gender, nationality, age or other factors.
In 2016, we established the Women’s Participation andAdvancement Taskforce, and in 2019 it was renamed as
the Diversity Promotion Taskforce to coincide with an
expanded scope of activities. Through activities to raiseawareness of diversity and inclusion (D&I), the task force
works to create a corporate culture in which a diverse
range of human resources can succeed while accepting
and respecting one another, and strives to create newvalue beyond conventional boundaries.
Specifically, we promote the advancement of women,
provide support for child and family caregivers, conduct
seminars to facilitate the acceptance and understanding ofpeople with disabilities and LGBTQ+*, and promote thedevelopment of workplace environment that is comfortable
for a diverse range of human resources.
* LGBTQ+: An umbrella term describing sexual minorities including those who identify
as lesbian, gay, bisexual, transgender, transsexual or questioning.

D&I Measures
To achieve our vision, we have implemented the following
measures.
Recruitment from Many Sources
We recruit new graduates on a stable basis reflecting a long-term perspective. Based on
our business needs, we also recruit experienced talent (mid-career hires). In addition,
we promote and assign the most appropriate human resources for each job fromvarious perspectives, including older human resources and early internal appointments.

Employment of Persons with Disabilities
In the employment of persons with disabilities, to date we have focused on jobs inwhich people can succeed regardless of disabilities within our existing operations, andhave periodically accepted new graduates at each business site. Going forward, we
will continue to develop new business operations as we broaden the scope of employing persons with disabilities.

Employment of Older Human Resources
Yokohama Business Association Co., Ltd., a wholly owned subsidiary of Yokohama
Rubber, rehires staff members who have reached mandatory retirement age anddispatches them to Yokohama. This provides an opportunity for employees with astrong willingness to work to continue to flourish utilizing their extensive knowledge
and experience until they reach age 70.

Support through Seminars and Other Activities
We conduct various seminars designed to support the successes of a diverse range ofhuman resources, including seminars to strengthen diversity management capabilities,
career development support seminars designed to promote female advancement,
exchange sessions between employees balancing their careers with child-rearing andhealth seminars (mental health measures, harassment prevention measures, breast
cancer, uterine cancer, menopause, sleep disorders, etc.).

Participation in work with Pride 2021
Yokohama was one of the companies participating in the work with the Pride 2021
Organizing Committee formed by work with Pride, a voluntary group that supports thepromotion and instilment of diversity management relating to sexual minorities such as
LGBTQ+ at the workplaces of companies, groups and other entities. The committee
conducted activities to plan and operate a conference about LGBTQ+ and the workplace.

Future Tasks•Global Diversity
At the Yokohama Group, where overseas sales account for
60% of all sales, we recognize the need for organizational
structures in which local human resources well versed in
the local language and culture operate business as
regional managers in order to prevail amid global competition. We will also do more to develop workplace environments that enable foreign nationals working at ourdomestic sites to succeed.
•Improving the Percentage of Managerial Positions
Filled by Women
As of December 31, 2021, the percentage of managerial
positions filled by women at Yokohama was 1.12% (8.53%
Groupwide). However, since fiscal 2007 when the percentage of new graduate hires who were female surpassed
20% for the first time, the employees who have joined
Yokohama are increasingly candidates for managerial positions, and going forward, we expect the number of female
employees in managerial positions to increase. We alsoutilize an early promotion system with the aim of further
facilitating the success of female management personnel.

TOPIC
Employing People with Disabilities through Yokohama Peer Support Co., Ltd.
Yokohama Peer Support is a special subsidiary of Yokohama
Rubber and was established in 2012 to create opportunities to
employ persons with disabilities. The services performed by its
employees include the cleaning of more than 160 locations in the
Hiratsuka Factory such as restrooms, various meeting rooms andbreak areas, greening work, the sorting and dispatching of postal
and internal mail, and the creation of business cards. Recruitment
has continued periodically each year since the company’s establishment, and as of December 2021, the company employs 43 people,
mainly those with intellectual disabilities.

By having instructors who
mainly comprise past employeesof Yokohama who carefully guidethese employees each day, we
strive to create a workplace environment in which each person
can go about their duties with peace of mind. Additionally, not onlyoffering regular consultations but also individual interviews twice ayear, we endeavor to stay abreast of employees’ career goals,
requests or concerns and improve the employee retention rate.

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41

Initiatives of Sustainability

People II (Workstyle Reforms, Human Resources Development,
Occupational Health and Safety)

Yokohama Rubber respects diverse styles of working and supports its employees in finding a healthy balance
between work and home life. We also strive to enhance the value of human capital by developing and selecting
added-value talent, assigning the right people to the right jobs, and creating a pleasant workplace where people
can work in good health.

Human Resources Development

Workstyle Reforms
Integration of the Head Office and Hiratsuka Factory

Basic Approach

In March 2023, we plan to integrate the Head Office andHiratsuka Factory. By doing so, we will achieve the unified
operation of planning, production, sales, technology anddistribution, and enable speedy decision making.

For the global Yokohama Rubber Group, assigning “professional human resources” who maintain a strong willingness to achieve and broad perspective, and who
demonstrate their capabilities while impacting thosearound them, is essential. To this end, we promote measures toward development and select talent, and ensurethat the right people are placed in the right jobs.
We also work to secure and develop managementoriented human resources who can carry the company
on their shoulders so that we can prevail amid global
competition.

■ Achieving Speedy Decision Making through Site Integration

Planning
Technology

Production

Sales

Distribution

Executing Operations Regardless of Time or Location
Today, as we seek ways to “New Normal of living with
COVID-19,” Yokohama will use the integration of the Head
Office and Hiratsuka Factory as an opportunity to introduce home office and satellite office schemes, upgrade
work-at-home and flex work systems, and drive otherworkstyle reforms that will allow people to continue working regardless of time or location, and even when undergoing various life events.

Developing and Selecting Value-Added Human
Resources
We will develop young employees as value-added humanresources, and quickly promote selected human resources
to important positions on an irregular basis with a focus on
performance.

Assigning the Right People to Important Positions
Specific Measures
Home Office Scheme
Following the integration of the Head Office and Hiratsuka Factory, we will introduce aHome Office Scheme where employees who end up having to commute long distances
will have offices developed at their homes at Yokohama’s cost and will basically workfrom home without maintaining a fixed desk at the office.

Establishment of Tokyo Office and Satellite Offices
In connection with the integration of the Head Office and Hiratsuka Factory, a Tokyo
Office at Shinagawa Intercity and satellite offices will be established.

Upgrading of Work-from-Home and Flexible Work Systems

We will assign the right people to important positions
based on their achievements, and when the right person
cannot be found internally, actively hire high-level staff fromoutside.

Linking Compensation with Duties and Performance
We will introduce a job-based system for managerial positions and adopt a compensation structure where salaryis paid based on duties, and bonuses are paid based on
performance.

By making enhancements to working systems, such as removing the upper limit on thenumber of days that can be used with the work-from-home system, instituting a flextime system that eliminates core hours and offering a flex-time system with shortened
working hours, we will further improve employees’ work-life balance and put in placesystems that enable them to produce work results regardless of time or location.

Message from the
Officer in Charge of
Human Resources

Shingo Ishimitsu
Officer, Head of HR Dept.

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THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

To achieve the YX2023 business strategies and technology strategy, we must create anenvironment in which a diverse range of human resources can leverage their individual
strengths and succeed to the fullest. To do so, I believe the important challenge we face iseliminating prejudices based on gender, LGBTQ+, disabilities and other attributes, as well as
fostering a corporate culture where a diverse range of human resources can mutually respect
their wide variety of working styles.
While COVID-19 has brought significant changes to the way we work, we will adapt tothese changes and develop environments to ensure that all employees can succeed evenmore. We will also create workplaces where employees can continue to work with peace ofmind as we balance comprehensive measures to prevent the spread of infection with business
continuity. All of our activities are rooted in the health of our employees, and we will continue
with diligent health promotion efforts.

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Occupational Health and Safety
Basic Approach

Future Tasks

Occupational accidents within the Yokohama Group occur
at a lower frequency than the averages across all industries
and the manufacturing sector, but the number is still not
zero, and when the causes of these accidents are analyzed, we recognize that many of them could have been
prevented if measures had been taken in advance. As it isnecessary to handle large machinery at our production
plants due to the nature of our business, defects in equipment specifications or incorrect operation can lead to serious accidents, and appropriate safety measures need tobe taken. Additionally, with mental conditions accounting
for an increasing proportion of long-term absences fromwork, we must properly look after the mental health of
employees in addition to their physical wellbeing.
The Yokohama Group strives to develop safe and comfortable workplaces and promote employee health, andalso aims to foster a culture of safety to remove all hazards, and achieve zero occupational accidents.

•Creating a Zero-Risk Workplace
We continually conduct risk assessments on all facilities
and tasks and implement safety measures for equipmentthat place a particular emphasis on “isolation from hazard
sources.”
By implementing ongoing safety education, conducting
risk prediction training, introducing a certification system
for hazardous work and through other efforts, we develop
safety-conscious human resources who have a sensitivity
toward risks and aim to create a zero-risk workplace.

Measures for Achieving Our Vision
We will implement the following seven measures to create
workplaces that enable employees to work in a safe andhealthy manner.
1. Strengthening safety measures for equipment and work
Implement risk assessments for all equipment and work, and create facilities so that sources of danger cannot reach or be reached by humanbodies, and for the prevention of recurrence of similar accidents.

2. Developing safety-conscious human resources
Conduct One-on-One education to develop safe personnel. Reinforce
Stop-Call-Wait procedure and countermeasures in response to risk
causes. Implement KYT (Kiken Yochi Training/hazard prediction training),
sampling and improvement of near-miss incidents, and hazard demonstration training in order to improve sensitivity towards risks.

3. Development of standard work manuals
Identify unsafe places and unsafe behaviors and review standard workthrough open work observation.

4. Promoting both physical and mental healthStrengthen mental health countermeasures (management of working
hours, face-to-face guidance and work improvement suggestions for
employees working long hours, education for improving communication
skills through attentive listening training classes and conducting stresschecks).

5. Improvements in workplaces
Carry out chemical substances risk assessment, improvements in personal protective equipment and facilities, development and working
methods, and thoroughly enforce the 5Ss (seiri [tidiness], seiton [beingorganized], seisou [cleanliness], seiketsu [hygiene], and shitsuke [discipline]) and improve of high temperature work environment.

6. Prevention of traffic accidents
Conduct accident prevention activities and identify risk points on commuting routes in order to achieve the target of zero accidents resulting ininjury or death.

7. Establishment of a safety and health platform
Ensure continuation and spiral up of Occupational Health and Safety
Management System, development of training system for each level,
enhancement of the checking function through top management diagnosis, safety patrols, safety diagnosis and diagnostic follow-up.

•Improving the Environment at Manufacturing Sites,
including Measures to Deal with Heat
As many Yokohama sites use heat in the manufacturing
process, measures to deal with heat are one of the mostimportant challenges. In addition, to create a healthy andcomfortable workplace, we also take measures to improve
hygiene and the quality of cafeterias, as well as to save onlabor and lighten workloads.
•Promoting Health and Productivity Management
To create a workplace where employees can work for along time in good health, we tackle health and productivity
management through Collaborative Health* in conjunction
with health insurance societies and promote improved
health and physical fitness.
* Collaborative Health: An approach where insurance providers and business operators actively collaborate to efficiently and effectively implement prevention and healthdevelopment for insured employees based on a clear division of roles and a good
workplace environment■ Health and Productivity Management Structure

System for Safety and Health Management

Collaborative Health

Safety and HealthManagement Dept.

Central Safety and
Health Committee

Health InsuranceSocieties

Safety and Health Section

Safety and Health Committee
in each siteHR Dept.

Health and Safety Subcommittee

Industrial Physicians
Public health nurses

All workers

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Initiatives of Sustainability

Community
The business activities of the Yokohama Rubber Group impact various aspects of the local communities
in which we operate. To continue our business activities, it is of the utmost importance that we meet the
expectations of local communities by communicating with them, and recognizing the issues they face and how
the Yokohama Group impacts them. We recognize that the Yokohama Group itself is a stakeholder in theseregions in which it operates and has a shared interest with those local communities. We therefore want to makeevery effort to solve issues in these local communities and contribute to their development.

Basic Approach
In the Yokohama Rubber Group Action Guidelines, theYokohama Group declares that we “shall aspire to harmony and prosperity with local communities.” Our basic
stance is to always remember that we are a member ofsociety, strive to achieve harmony and prosperity withsociety, build relationships of trust with stakeholders,
support the social contribution efforts of employees andfoster a corporate culture in which employees are willingto actively participate in social contribution activities.
As an entity that operates globally, the YokohamaGroup endeavors to build good relationships with local
communities in terms of the environment, laws, culture,
customs and the economy.

YOKOHAMA Magokoro Fund•Giving shape to the sincerity (Magokoro) of employees
The YOKOHAMA Magokoro Fund, which was establishedby employees in 2016, collects reserve funds from
employees (members) who support the purpose of thefund (arbitrary amounts starting from 100 yen per month),and makes donations to support groups tackling social
issues or as relief funds in the wake of disasters.
Yokohama has also introduced a system to match any
donations made by the fund yen-for-yen.
As of December 31, 2021, around 44% of employees
are enrolled as members of the fund.

•Support provided in fiscal 2021
In 2021, support provided by the fund totaled 4,898,000
yen (including disaster relief funds).
The main recipients of support were as follows.
•Japan Hair Donation & Charity Nonprofit Organization•Public interest incorporated association Chance for Children•2021 Izusan Landslide (Atami-shi, Shizuoka Prefecture)

Set of medical wigs provided by the Japan Hair Donation & Charity

Initiatives at Domestic Sites•Medical assistance in response to the COVID-19
pandemic
In March 2021, the Hiratsuka Factory donated 100 passenger vehicle tires to Kanagawa Prefecture. The donatedtires were fitted to the dedicated vehicles used to transport COVID-19 patients used at 21 health department
facilities throughout the prefecture. The YOKOHAMA
Magokoro Fund also provided support in the amount of
100,000 yen to cover some of the costs of changing tires.
In June 2021, the Mie Plant donated 40 passenger
vehicle tires to Mie Prefecture. The donated tires were fitted to government vehicles used to transport COVID-19
vaccines procured by Mie Prefecture to vaccination sites
such as hospitals and public health centers.

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Work to fit tires to dedicated COVID-19 patienttransportation vehicles in Kanagawa PrefectureValue Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Initiatives at Overseas Sites•Support for the Laojunshan Project (China)
Yokohama Rubber (China) Co., Ltd. (Y-CH), the controlling subsidiary of Yokohama in China, has been supporting the Laojunshan Project since 2011. The project aims
to preserve biodiversity in the Laojun Mountain Nature
Reserve located in Lijiang, Yunnan Province.
Laojun Mountain is a mountainous area surrounded bylush nature that was registered as a World Natural
Heritage Site in 2003. The Laojunshan Project is a uniqueeffort that aims to preserve the ecosystem by transforming a village located in the nature reserve that previously
could only make a living through deforestation into an
agricultural and livestock production-based economy.
Y-CH supports the project in coordination with the
Lijiang Health and Environment Research Center, and has
established a “Village Bank” to provide the loans necessary to convert to agricultural and livestock production,
donated equipment, launched a sales organization andestablished mechanisms enabling village residents to turntheir produce into revenue, including support for youth

education. There is also a focus on passing on the folk
culture of the Lisu people, an ethnic minority living in the
Laojun Mountain area. The project provides tools for making traditional textiles and musical instruments, conducts
workshops and donates ethnic musical instruments.
The Yokohama Group will continue to support theLaojunshan Project and efforts to pass on the culture ofethnic groups while facilitating efforts to establish a goodcycle of the environment, economy and culture.

Village Bank

•Educational support for schools (India)
The Tirunelveli Plant of ATC Tires Pvt. Ltd. (ATG-TN), an
India-based tire manufacturing subsidiary, is providing
support for infrastructure development and digital education at multiple schools.

•Disaster relief (Thailand)
Y.T. Rubber Co., Ltd. (YTRC), a Thailand-based natural
rubber processing subsidiary, has been supporting theresidents of nearby villages who were affected by flooding
in 2021 by providing rice and fresh water.

Educational support for elementary schools in India

Distribution of relief supplies to regions affected by flooding in Thailand

TOPIC
Completion of tree planting for forest tide embankment
Utilizing the expertise in tree planting gained from YOKOHAMA The
Forever Forest Activities, in April 2022 the development of forest tideembankments along the Kozuchi River in Otsuchi, Iwate Prefecture,
which started in 2012, was completed as part of relief activities in
the wake of the Great East Japan Earthquake.
Tree planting activities have been held nine times, between interruptions due to the COVID-19 pandemic, attracting local residentsof Otsuchi, students of Otsuchi Gakuen and employees of
Yokohama as volunteers. Seedlings grown and planted from seedlings collected from the local Otsuchi area and Tohoku region numbered 25,000 in total along a stretch roughly 300 meters long, andseedlings planted in 2012 when the last children to take part in thetree planting efforts were born have grown to a height of five meters,
rising to a height that provides thick shade from the sun.

The forest tide embankment, given the name “Heisei Forest,”
features trees that are approximately five meters high and around 15
meters in width, with rubble from the earthquake spread out as afoundation and covered with soil. In addition to the interest of biodiversity preservation, growing the trees to large sizes is expected tosap the energy of tsunami waves.
Yokohama will continue to work with local
volunteers to conduct
weeding and improvethe environment.

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Initiatives of Sustainability

The EarthYokohama has established three pillars in tackling environmental issues: carbon neutrality, circular economy
and coexistence with nature, and set medium-to-long-term targets for each of them, and laid out a roadmap forachieving them. Yokohama will accelerate efforts towards a decarbonized society while conducting research anddevelopment into sustainable materials and expanding their usage percentage, and contribute to the realizationof a sustainable society through biodiversity preservation activities.

Yokohama Rubber Basic
Environmental Policy

Following the principle of “dealing fairly with society and valuing harmony with the environment”, we shallassert our world-class strengths in technologies for protecting the environment.

•Continued improvement of environmental management •Action to combat global warming•Contributing to the creation of a sustainable recycling society

Three Pillars ofEnvironmental Issues

As part of ESG management under the YX2023 medium-term management plan, we have established theslogan of “Caring for the Future” and pursue activities based on the following three pillars.

Medium-to-Long-Term Goals and the Road Map for Achieving Them
Carbon Neutrality•2030: 38% reduction (compared with 2013 levels) in CO2 emissions from our own activities•2050: Net zero CO2 emissions from our activities

Circular Economy•2030: At least 30% renewable/recycled raw material usage•2050: 100% sustainable raw materials

Coexistence with Nature•YOKOHAMA Forever Forest Activities: 1.3 million cumulative trees planted and saplings provided by 2030
•Promotion of sustainable natural rubber procurement•Biodiversity preservation activities compatible with local ecosystems

Initiatives to Achieve Carbon Neutrality
We aim to reduce CO2 emissions from our own activities
by 38% compared with 2013 levels by 2030, and achieve
net zero CO2 emissions by 2050. At our production sites,
we will use the Shinshiro-Minami Plant as a model plant
for achieving carbon neutrality by 2030, roll out thatknow-how to other plants in Japan and overseas andstrive to achieve carbon neutrality across all plants by
2050. As a company-wide activity beyond manufacturing
sites, we will continue to implement 1% annual in-house
improvement activities that promote improvements andrevisions to facilities, equipment and transportation processes, and aim to achieve carbon neutrality.

The Shinshiro-Minami Plant serving as a model plant for carbon neutrality

Initiatives to Tackle the Circular Economy
We will strive to make the raw materials we use sustainable, achieve at least 30% renewable/recycled
raw material usage by 2030 through collaboration
with partners and technological development in addition to our own exploration and development, andaim to achieve 100% sustainable raw materials by
2050. Specifically, we will aim to develop technologies for the highly efficient synthesis of butadienefrom ethanol and the production of butadiene andisoprene from biological resources, and develop
technologies for tires that use sustainable materials in
our motorsports endeavors, with the aim of balancing
product performance with the circular economy.

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THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Targets andSteps toAchievement

Step1

Strengthenfoundations

2025

Step 2

Target27%

Expandpractical use
for products

2030
Target30%

2050
Sustainable
raw materials
target 100%Market launch and expansion of resource recycling-oriented products

Renewable/
recycled raw
materials

Collaboration
with partners,
technologicaldevelopment

Development of technologies
balanced with product performance

Expanded percentage
of useSearching for new raw materials

Practical implementation

Initiatives with suppliers

Achieving results

Roadmap to a Circular Economy

Conversion tosustainable raw
materials

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives Promoting Coexistence with Nature•YOKOHAMA Forever Forest Activities
YOKOHAMA Forever Forest Activities were started in 2007
as an effort to plant 500,000 saplings utilizing potential natural vegetation at production and sales-related sites in Japanand overseas by 2017, the 100th anniversary of Yokohama.
Starting with tree planting activities implemented on
November 11, 2007 at the Hiratsuka Factory, we planted
trees at 14 sites in Japan and 21 overseas sites in eight
countries, reaching the target of 500,000 trees in
September 2017. By the end of 2021 we had planted
628,000 trees and provided 462,000 saplings, for a combined number of 1.09 million. We will promote these activities at each site in Japan and overseas as an ongoing effort,
and continue with activities to reach our combined targetof 1.3 million trees planted and saplings provided by 2030.
Leveraging the knowledge we have accumulated toInitiatives of Sustainability

Corporate Governance

Data Section

date, we hope to contribute to efforts to curb global warming and preserve biodiversity by continuing with this initiative through tree planting activities at factories and othersites, and the provision of seedlings and tree planting
expertise.

•Sustainable natural rubber procurement
Natural rubber accounts for around 20% of the raw materials used by the Yokohama Group, and as a raw material itis essential for us to provide customers with our products
without interruption. To fulfill our responsibility as a global
tire manufacturer, Yokohama takes part as a founding
member of the Global Platform for Sustainable Natural
Rubber (GPSNR)*1, which was launched at the initiative of
the Tire Industry Project (TIP)*2 as part of the World
Business Council for Sustainable Development (WBCSD)*3.
In October of the same year, we also formulated our own
Procurement Policy for Sustainable Natural Rubber.

Based on the Procurement Policy for Sustainable
Natural Rubber, the Yokohama Group works to establish
traceable system, protect human rights, labor and theenvironment, and engage in related activities.
The Yokohama Group also engages in its own uniqueinitiatives, including agroforestry efforts where our subsidiary Y.T.RUBBER CO.,LTD.(YTRC) provides support for
widespread adoption to neighboring farms, and the provision of expertise cultivated through YOKOHAMA ForeverForest Activities.

•Activities to preserve biodiversity
The Yokohama Group strives to preserve biodiversity froma long-term perspective, based on the recognition that it
uses biological resources such as natural rubber and thatits business activities impact biodiversity.
At our plants, we create biotopes, engage in the ForeverForest activities in coordination with local residents andconduct monitoring to assess our business impact throughsurveys of living creatures. A total of five sites (Hiratsuka
Factory, Onomichi Plant, Ibaraki Plant, Mie Plant andShinshiro Plant) have obtained Office in Harmony with
Nature® certification (ABINC certification) from the
Association for Business Innovation in Harmony with
Nature and Community (ABINC).

*1 GPSNR: Global Platform for Sustainable Natural Rubber*2 TIP: Tire Industry Project*3 WBCSD: World Business Council for Sustainable Development

TOPIC
Engagement Events with Suppliers
As a part of activities to procure sustainable natural rubber, Yokohama
conducts many engagement events around the world, including seminars and Suppliers’ Day activities for natural rubber suppliers.
The Suppliers’ Day in May 2022 was held in an online format,
but 180 representatives from natural rubber producers, trading firms
and other organizations took part from around the world. We haveasked suppliers for cooperation on specific initiatives as part of oursustainable natural rubber procurement activities, deepened sharedunderstanding with suppliers and strengthened partnerships by recognizing suppliers that have made particular contributions.
In June, as a part of our farm support activities, we conducted
seminar events on improving the quality and productivity of natural

rubber for natural rubber farmers in Thailand. The natural rubber
farmers that took part have also helped in conducting follow-up surveys on natural rubber properties and productivity.

Trophies presented to supplier award
winners

Natural rubber farmers who took part in theseminar event

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

47

Corporate Governance

Senior Management

As of July 1, 2022

Members of the Board
Masataka
Yamaishi

Gota Matsuo

Nitin Mantri

Member of the Board andManaging Officer, Chief
Financial Officer, Head ofCorporate Administration
Div., in charge of Corporate
Finance & Accounting Dept.,
Head of CSR Div., in chargeof IT & Management System
Planning Div., President of
Yokohamagomu Finance Co.,
Ltd., in charge of PRGR

Member of the Board andManaging Officer, Head of
OHT Div., CEO of
Yokohama Off-Highway
Tires K.K., Chairman of
Yokohama India Pvt. Ltd.

Yasuo
Nakayama

Shinji
Seimiya

Hideichi
Okada

Nobuo
Takenaka

Member of the Board andOfficer, Head of MB Div.,
Head of Hose andCouplings Div.

Member of the Board andOfficer, Chief Technical
Officer, in charge ofCorporate Quality
Assurance Div., Head of
Tire Development Div.

Member of the Board(Outside)

Member of the Board(Outside)

Hirokazu
Kono

Masatoshi
Hori

HirokoKanekoMember of the Board(Outside)

Member of the Board(Outside)

Member of the Board(Outside)

President, Chairman of the
Board

Toru
Nakamura
Member of the Board andOfficer, Head of Tire
Production Div.

Directors and Auditors with the Skills Needed for Implementing Management Strategy
Name

Position

Corp mgt
Mgt strategy

HR policies &development●●

Masataka Yamaishi

President, Chairman of the Board

Gota Matsuo

Member of the Board and Managing Officer

Nitin Mantri

Member of the Board and Managing Officer

Toru Nakamura

Member of the Board and Officer

Yasuo Nakayama

Member of the Board and Officer

Shinji Seimiya

Member of the Board and Officer

Hideichi Okada

Member of the Board (Outside)●

Nobuo Takenaka

Member of the Board (Outside)●

Hirokazu Kono

Member of the Board (Outside)●

Masatoshi Hori

Member of the Board (Outside)●

Hiroko Kaneko

Member of the Board (Outside)

Osamu Mikami

Audit & Supervisory Board Member

Hisao Uchida

Audit & Supervisory Board Member

Atsushi Kamei

Audit & Supervisory Board Member (Outside)

Megumi Shimizu

Audit & Supervisory Board Member (Outside)

Hiroki Kimura

Audit & Supervisory Board Member (Outside)

Overseas
Tech
Procurement/
knowledge development & Prod’n/ Prod’n
Int’l businessqualitytechnology/ SCM

Finance &accounting

●

●
●

●

●

●
●

●

●

●

●

●

●

●
●

●

●

●

●
●

●
●

●
●

●
●

●
●

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

●

●

●
●

●

Note) ● entered for maximum of 4 skills or areas of specialization for each director and auditor, chart does not indicate all the skills or professional knowledge possessed by the directors and auditors.

48

Sales &
marketing

●

●
●

●

●

●
●

●

●

ESG/ CSR●●●

GovernanceInternal
controls●Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Audit & Supervisory Board Members
Osamu
Mikami
Audit & Supervisory Board
MemberHisao Uchida
Audit & Supervisory Board
MemberAtsushi
Kamei

Megumi
Shimizu

Audit & Supervisory Board
Member (Outside)

Audit & Supervisory Board
Member (Outside)

Hiroki Kimura
Audit & Supervisory Board
Member (Outside)

Officers
Shinichi Takimoto

Senior Managing Officer, President and CEO of Yokohama Corporation of North America, Chairman of Yokohama Tire Corporation, CEOof Yokohama Tire (Canada) Inc., CEO of Yokohama Tire Mexico, S. de R.L. de C.V.

Jeff Barna

Senior Managing Officer, President and CEO of Yokohama Tire Corporation

Tadaharu Yamamoto

Managing Officer, Assistant to President, Head of Tire Logistics Div.

Tomoaki Miyamoto

Managing Officer, Head of Japan Replacement Tire Sales & Marketing Div., Member of the Board of Yokohama Tire Japan Co., Ltd.

Katsuhiko Yahata

Managing Officer, President of Yokohama Tire Japan Co., Ltd., Deputy Head of Japan Replacement Tire Sales & Marketing Div.

Yoshikuni Nakamura

Managing Officer, Head of Tire Overseas Sales & Marketing Div., Chairman of Yokohama Asia Co., Ltd.

Masahiro Yuki

Officer, Chairman of Yokohama Rubber (China) Co., Ltd., Chairman of Yokohama Tire Sales (Shanghai) Co., Ltd., Chairman of Hangzhou
Yokohama Tire Co., Ltd., Chairman of Suzhou Yokohama Tire Co., Ltd., Chairman of Yokohama Industrial Products - Hangzhou Co.,
Ltd., Chairman of Yokohama Industrial Products Sales - Shanghai Co., Ltd., Vice Chairman of Shandong Yokohama Rubber Industrial
Products Co., Ltd.

Hiroyuki Shioiri

Officer, Chairman of Yokohama Europe GmbH, Chairman of Yokohama Scandinavia AB, Chairman of Yokohama H.P.T. Ltd., Chairmanof Yokohama Iberia S.A., Chairman of Yokohama France S.A.S., President of Yokohama Danmark A/S, President of Yokohama Suisse
SA, President of Yokohama CEE Spółka z.o.o.

Satoshi Fujitsu

Officer, Head of O.E. Tire Sales & Marketing Div.

Kazuhito Yanadori

Officer, Head of Procurement Div., President of Yokohama Rubber Singapore Pte. Ltd.

Hiroyuki Narabayashi

Officer, Head of Corporate Quality Assurance Div.

Takehisa Morimoto

Officer, Chairman and President of Yokohama Tire Manufacturing Mississippi, LLC.

Shingo Ishimitsu

Officer, Head of HR Dept., President of Yokohama Peer Support Co., Ltd., President of Yokohama Rubber Health Insurance Society.,
President of Yokohama Rubber Co-op.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

49

Corporate GovernanceCorporate GovernanceWe in the Yokohama Rubber Group work in the spirit of our Corporate Philosophy to achieve continuing
growth in corporate value and to thereby earn the unwavering confidence of all our stakeholders. Our efforts
have included building a corporate governance framework for ensuring sound management that is fair andtransparent, and we have worked continuously to reinforce that framework.

Corporate Governance Policy and Structure•Basic Corporate Governance Policy
1. Ensuring shareholders’ rights and equality
2. Appropriate collaboration with stakeholders other thanshareholders
3. Ensuring appropriate information disclosure and transparency
4. Responsibilities of the Board of Directors
5. Dialogue with shareholders* Only items listed. See the Yokohama website for details.

WEB■ Basic Corporate Governance Policy

https://www.y-yokohama.com/global/csr/governance/

In addition, to strengthen the strategic functioningof top management, we have established an Executive
Committee on which directors serve as key members.
The committee monitors the achievement status of business plans and deliberates matters concerning businessstrategy. Important matters discussed at the Executive
Committee are reported to the Board of Directors together
with a summary of such matters, and those of the highest priority (as stipulated by the Board of Directors
Regulations) are also discussed by the Board of Directors.

Management Audit OversightManagement and Business Execution Structure
In addition to statutory bodies and positions required under
the Companies Act (General Meeting of Shareholders,
Directors, Board of Directors, Audit & Supervisory Board
Members, Audit & Supervisory Board, Independent Public
Accountants), under the current management structure we
employ an executive officer system to clarify management
oversight and business execution while thoroughly speedingup management decision making and business execution.
Under this structure, the Board of Directors comprises 11
members in total, six internal directors (including directors
who serve concurrently as executive officers) including thepresident, who holds the right to represent the Company,and five outside directors. In addition, there are 13 executive
officers, excluding those who serve concurrently as directors. As the Company’s management supervisory body, theBoard of Directors has established a highly effective systemof oversight for directors with the appointment of five outside directors. The President and Representative Member ofthe Board chairs the Board of Directors and does not serve
concurrently as an executive officer.

The Company has an Audit & Supervisory Board thatserves as an audit function for management, and consistsof five members in total, two internal Audit & Supervisory
Board members, and three outside Audit & Supervisory
Board members. A system has been established for
Audit & Supervisory Board members to learn of the stateof business execution by attending important meetingsand committees including the Executive Committee. The
auditing structure comprises audits conducted by Audit& Supervisory Board members to audit directors in theperformance of their duties, financial auditing conductedby independent public accountants as outside audits andfinancial and business audits of each executive department
and Group company conducted by the Internal Audit Dept.
These activities maintain independence from eachother and serve to establish a three-way audit structure.
At the same time, Audit & Supervisory Board members
receive information from independent public accountants
and the Internal Audit Dept. as appropriate in an effort tostrengthen audit functions.

■ Corporate Governance Support System
Shareholders’ Meeting
Selection, dismissal, oversight
Accounting audit
Accounting Auditors

Selection, dismissal, oversight
Audit

Audit & Supervisory Board
5 auditors (including 3 outsiders)Accounting audit

Selection, dismissal, oversight
Proposals

Board of Directors
11 directors (including 5 outside directors)

Management, oversight

Audit

Personnel Remuneration
Committee for Corporate
Officers and Directors
3 committee members(including 2 outside directors)

Representative Director
CSR Council

Executive Committee

Corporate Compliance Committee
Central Disaster Prevention Council

Accounting audit

Environment Council
Risk Management Committee, etc.

Head of Corporate Administration
Internal Audit Dept.

Internal audits

Corporate Officer/Each Business Management Div.

Corporate Philosophy and Action Guidelines

50

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

pendent outside directors.
The committee convened four times in fiscal 2021, in
which it deliberated officer personnel and remuneration
matters that were then advised to the Board of Directors.

Personnel Remuneration Committee for Corporate
Officers and Directors
To ensure fairness and transparency in officer personnel
affairs and remuneration, the Company has established the
Personnel Remuneration Committee for Corporate Officers
and Directors. Officer personnel matters and remuneration
are decided by the Board of Directors following a review by
the committee. The committee comprises three members,
one representative director and two independent outside
directors, ensuring that a majority of its members are inde-

Name of Committee

Personnel Remuneration Committee for Corporate
Officers and Directors

Committee members

3 members

Member of the Board (Internal)

Masataka Yamaishi

Member of the Board (Outside)

Hideichi Okada, Hirokazu Kono

Chairman

Masataka Yamaishi

Remuneration for Corporate Officers and Directors
Method for Calculating Medium-Term PerformanceLinked Remuneration

Overview of Officer Remuneration
Traditionally, Yokohama has paid directors (excluding outside directors) basic remuneration and annual bonuses asmonetary remuneration under a system where the annual
bonuses fluctuate according to Company-wide performancein each fiscal year and the attainment level of individual
results for each director.
In addition, with the aim of ensuring the sustainableimprovement of corporate value and greater sharing ofvalue with shareholders, the Ordinary General Meeting of
Shareholders held in 2018 resolved to introduce a restricted
stock compensation system for directors (excluding outside
directors). This system was extended to executive officers
from 2020.
Starting in 2021, a medium-term performance-linked
remuneration system was introduced for directors (excluding outside directors) and executive officers, with the aimof further incentivizing the achievement of quantitative targets in the Medium-Term Management Plan.

The applicable period is the three years from fiscal 2021
to fiscal 2023 that represent the quantitative target of theGroup’s Medium-Term Management Plan. The standard isset at a cumulative consolidated business profit of ¥180
billion in total, with the remuneration calculated for all
eligible persons according to the following formula.
Cumulative consolidated
business profit over the ÷ ¥180 billion × 100
applicable period
120％ or more
100% or more but less than 120%
Payment for less than 100%

The officers eligible for medium-term performance-linked
remuneration as of March 30, 2022 are as follows.
Position

Number of persons
1

Member of the Board and Managing Officer

2

Member of the Board and Officer

3

Officer

13Monthly remuneration × 12 months ×payment factor of 1.5
Monthly remuneration × 12 months ×payment factor of 1
No payment

Monthly remuneration is the remuneration set for eachposition in April 2021, and if a position changes part way
through the applicable period, the calculation is to bemade based on the monthly remuneration in the month thenew position was assumed. For eligible persons, an individual monetary limit of ¥84.78 million is set.
Medium-term performance-linked remuneration will be
paid in cash within one month of the day following that day
on which the cumulative consolidated business profit during the applicable period has been finalized at the first
Ordinary General Meeting of Shareholders held after theend of the applicable period.

Eligibility for Medium-Term Performance-Linked
Remuneration

Representative Director

Calculation method■ Amount of Remuneration of Directors and Audit & Supervisory Board Members (fiscal 2021)
Total by type of remuneration (Millions of yen)
Performance-linked remuneration
Number of applicable
Medium-term
executives (persons)
Basic remuneration
Restricted stockBonusperformance-linked
compensation
remuneration

Category

Total remuneration(Millions of yen)

Member of the Board (excluding Member of the Board (Outside))

417

198

60

100

57

7

63

45

17

—

—

3

74

74

—

—

—

8

Audit & Supervisory Board Members (excluding Audit &Supervisory Board Member (Outside))
Member of the Board (Outside) and Audit &Supervisory Board Member (Outside)

A breakdown of the names, positional categories and remuneration amounts are listed below for those officers whose total remuneration including consolidated remuneration
exceeded ¥100 million for fiscal 2021.
Name

Consolidated total
remuneration(Millions of yen)

Masataka Yamaishi

146

Nitin Mantri

487

Total by type of remuneration (Millions of yen)
Executive category

Company category

Basic remuneration

Bonus

Restricted stockcompensation

Medium-term
performance-linked
remuneration
18

Member of the Board

Reporting Company

56

21

50

Member of the Board

Reporting Company

32

—

—

2

23

152

—

274

Member of the Board Consolidated Subsidiary ATC Tires Pvt. Ltd.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

51

Corporate Governance

Messages from Member of the Board (Outside)and Audit & Supervisory Board Member (Outside)
Hirokazu Kono Member of the Board (Outside)
Profile
March
March
March
April
April
May
July
April
October
June
May
June
June
March

1980 Graduated from the Department of Industrial and Systems Engineering, Faculty of Engineering,
Keio University
1982 Completed master’s course at the Graduate School of Engineering, Keio University
1987 Withdrew from the Graduate School of Engineering, Keio University after obtaining doctoral
course credits
1987 Research Associate, Graduate School of Business Administration, Keio University
1991 Assistant Professor, Keio University
1991 Ph.D. in Engineering (Keio University)
1991 Visiting Researcher, Harvard Business School (until July 1992)
1998 Professor, Keio University (current post)
2009 Dean, Graduate School of Business Administration and Business School, Keio University (until
September 2019)2011 Member of the Independent Committee, The Yokohama Rubber Co., Ltd. (until March 2014)2013 President, Japan Industrial Management Association (until May 2017)2014 Audit & Supervisory Board Member, Okasan Securities Group Inc. (until June 2021)
2015 Outside Director, Audit & Supervisory Committee, Okasan Securities Group Inc.
Outside Director, Stanley Electric Co., Ltd. (current post)2018 Member of the Board, The Yokohama Rubber Company, Co., Ltd. (current post)

Significant Concurrent Positions
Professor, Keio University

Visiting Worksites, Thinking Together with Workers and Working Together as One
Company to Improve Corporate ValueI believe that the key in corporate management is to properly recognize the company’s strengths as well as issues andto determine the direction that the company should aim for.
While it is necessary to individually respond to recent business keywords such as environmental issues, sustainability,
compliance, governance, IoT, and digital transformation (DX),the starting point is the ability to concretely envisage the ideal
and target image of the company from a long-term perspective, and the attitude of leaders themselves to visit worksites
and grasp the current situation.
With regard to governance and compliance, it is my
opinion that Yokohama Rubber comprehends socioeconomic trends accurately and implements swift responses.
On the other hand, there is still room for further improvements in terms of safety and quality. In order to thoroughly
ensure the very basics of safety and quality in the workplace,
I believe that Yokohama should enhance functional andhuman resources that connect the head office with worksites.
I expect that the relocation of the head office from Tokyo to
Hiratsuka will act as one key catalyst for such enhancement.
In terms of business development, Yokohama is swiftly
implementing new growth initiatives such as reorganizing partof the MB segment to consolidate management resources
and focusing on the commercial tire business. Nevertheless,I feel that there is still room for a higher level of QCD improvement capabilities at the production sites. Although the diversifying production mix will make it even more difficult tocontinue improvement activities, it is important to pursue aprocess to produce good products while ensuring safety at

52

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

the production sites and make steady improvements. Such
activities will be linked to supply chain management (SCM)
and manufacturing-sales collaboration, combining the capabilities in human resources development and IT. I would liketo contribute to these initiatives by making use of my own
expertise.
At meetings of the Board of Directors, I speak frankly on
issues such as production and supply matters and humanresources development. However, there are difficulties in covering every and all issues and practicing a worksite-focused
approach merely by attending meetings. In the future, I would
like to take more opportunities of activities that involve visiting
workplaces and thinking together with workers.
FY2021 was the first year of the Yokohama Transformation
2023 (YX2023) medium-term management plan. While theachievement of the goals set in the YX2023 has great significance and responsibility, it is also important to value thesense of achievement and motivation of workers in every
department who underpin daily corporate activities. How can
Yokohama enhance not only our output as a result indicator,
but also the fulfillment of functions such as production, sales,
R&D and management? I would like to continue to makeproposals from an objective perspective.
For the benefit of stakeholders, it is essential to appropriately communicate Yokohama’s raison d’etre including its
responses to issues in the local environment, enhance its
corporate value, and return profits. I hope to contribute to thetwo-way communication with stakeholders.

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Megumi Shimizu Audit & Supervisory Board Member (Outside)
Profile
March
April
April
April
March

1991 Graduated from Faculty of Law (Department 1), The University of Tokyo
1993 Completed course at the Legal Research and Training Institute1993 Joined Nishimura & Sanada law firm (until March 1995)
1999 Rejoined Nishimura & Partners
2004 Partner, Nishimura & Tokiwa law firm (now Nishimura & Asahi)(current post)June
2005 Graduated from Harvard Law School (LL.M)
September 2005 Worked at Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York(until March 2006)
December 2015 Outside Auditor, EduLab, Inc. (current post)
March2018 Audit & Supervisory Board Member, The Yokohama Rubber Company, Co., Ltd. (current post)

Significant Concurrent Positions
Partner, Nishimura & Asahi

Importance of Establishing and Appropriately Operating Effective Group Governance with
the Inclusion of Overseas Bases
As an Audit & Supervisory Board Member (Outside) witha background as a lawyer, I place a primary emphasis on
our “defensive function” and endeavor to monitor whether theCompany’s management makes key management decisions
based on due consideration of possible risks from multiple
perspectives.
At last year’s Board of Directors meetings, efforts weremade to deepen the understanding of outside officers withregard to the Company’s business and its issues, such as
by allocating time to provide detailed explanations of business plans for each division and sharing materials from theBusiness Strategy Meeting. This makes me feel that management expects useful advice from us as outside officers.
The Company’s senior management team is taking
a proactive stance in terms of business plans and strategies,
as demonstrated by the currently ongoing acquisition of
Trelleborg Wheel Systems Holding AB (TWS, Sweden). In
order for Yokohama Rubber to achieve sustainable growth as
a listed company and enhance corporate value over the
medium to long term, I believe that the importance of management with an emphasis on compliance-based sustainability will continue to increase.
With regard to compliance, even now, in-depth analyses
are being conducted and serious discussions are being heldon every issue reported at meetings of the Board of Directors
and the Audit & Supervisory Board based on thorough observations made by outside officers, with a view to preventing recurrences. In addition to instilling an awareness of theimportance of compliance at all levels within the Company,

it is essential to establish a system in which the appropriate
departments and points of contact are promptly consulted(or given reports), and corrective measures are taken whenever an incident that could constitute a breach of complianceoccurs or is discovered.
The Company currently has overseas bases in 27 countries, and overseas business sales in the fiscal year ended
December 31, 2021 accounted for 64.6% of total sales.
When the acquisition of TWS is completed, the ratio ofoverseas business activities will increase further, so it will be
important to establish an effective group governance system,
including overseas bases, and to operate it appropriately.
I intend to pay close attention to the efforts of the Company’s
management to enhance global governance.
With regard to sustainability, we are tackling issues
related to the environment and society in product development and business activities. In order to support Yokohama’s
sustainable growth and increase corporate value, it will bealso important to ensure the diversity of human resources
who will serve as the foundation for these efforts. The ratio of
female managers within the Company is still low at present,
so I hope that we will continue working to raise this ratio while
implementing work style reforms, so that all employees canplay active roles with job satisfaction while achieving a healthybalance with life events, regardless of gender.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

53

Corporate GovernanceCompliance
The Yokohama Rubber Group Action Guidelines define theactions to be taken by members of the Yokohama Groupnot only to comply with laws and regulations but also toobserve social norms.
In addition, to respond to expanding risks due toglobalization, in July 2017 the Yokohama Rubber Group
Competition Law Compliance Policy and Anti-Corruption
Policy were established by approval of the Board of
Directors. By declaring these policies in Japan and abroad,defining regulations and guidelines that embody them,and presenting these requirements to members of the
Yokohama Group, we have put in place a system that prevents violations of competition law and corruption.
By combining the Global Whistle-Blowing System
introduced from February 2018 with these initiatives andexpanding them to our subsidiaries in each country andregion, we aim to further raise the level of compliance in
the Yokohama Group.

Compliance System
Yokohama Rubber has established a Corporate Compliance
Committee chaired by the director in charge of the CSR
Div. and a Corporate Compliance Dept. as the department that handles implementation. The committee meetsfour times a year for ongoing implementation of various
measures related to the Yokohama Group’s compliance,
and to report on its activities to the Board of Directors andthe Audit & Supervisory Board. The Corporate ComplianceDept. also plans and promotes compliance training forGroup members, distributes educational materials depending on the recipients and information required, and conducts group learning and training activities at workplaces.
In addition, by assigning a person from each division
to be a concurrent member of the Corporate ComplianceDept., and Compliance Promotion Managers at affiliatedsubsidiaries, we have established a network connecting compliance-related complaints and consultations to■ Compliance Workplace Training Themes (2021)

The Yokohama Group uses its own educational materials to conduct
group training on compliance at each workplace monthly. In fiscal 2021,
the following themes were covered.

54

January

Revisions to the whistleblowing regulations

February

Sexual harassment

March

Power harassment

April

Misappropriation of company assets

May

Human rights

June

The Antimonopoly Act

July

Reverse power harassment

AugustPower harassment of affiliate companies and suppliers

SeptemberProtection of personal information

October

Paid leave

November

Improper conduct regarding quality

December

Giving and receiving parting gifts, gifts of thanks, etc.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

the Corporate Compliance Dept. The Yokohama Group’s
Corporate Philosophy and Code of Conduct have been
disseminated to all Group companies, including thoseoverseas, and serve as guidelines for the execution ofduties by the directors and employees of each company.

Whistle-Blowing System
In Japan, we have established two types of whistleblowing and consultation services, the Corporate Compliance
Hotline and the General Counseling Room. Contact details(telephone numbers, email addresses) for these services
are disseminated through Corporate Compliance Cards
distributed among all members of the Yokohama Group to
respond to the need for employees to make whistleblowing reports or seek consultation.
There are two Compliance Hotlines, one internal andone external. All reports are treated as anonymous inaccordance with the Whistle-Blower Protection Act. The
external Compliance Hotline is set up at a law firm toensure independence.
The General Counseling Room has been set up as aservice for anyone to consult over doubts regarding compliance, and as a general rule is not treated as anonymous. In
fiscal 2021, the Compliance Hotline and General Counseling
Room fielded 149 reports or consultations in total.
For overseas subsidiaries, a Global Whistle-Blowing
System where the Compliance Dept. directly ascertains
violations of competition law or bribery through the external Compliance Hotline has been set up. Coordinating withlocal law firms and companies that provide whistleblowing systems, phased introduction has been completed
in China, the Philippines, Thailand, North America andEurope. Going forward, introduction will also be pursued
for production sites in Vietnam and Indonesia.

■ Whistle-Blowing System

Global Whistle-Blowing System Domestic Whistle-Blowing System
Overseas whistleblower

Results report

Whistleblowing

Overseas whistleblower contact(country-specific)
Contact

ReportDomestic whistleblower

Whistleblowing

Results report

Domestic whistleblower contact

ReportContact
ReportCorporate Compliance Dept.
Improvement
results report

Investigation andinstructions for
improvement

Overseas group companies

Investigation andinstructions for
improvement

Improvement
results report

Individual divisions anddomestic group companies

Corporate Compliance Committee

Basic ApproachValue Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data Section

Risk Management

Cross-Shareholdings

Basic Approach

Basic ApproachTo establish a solid defense system against the various
risks surrounding the Company, we have established the
Risk Management Committee, which is chaired by the
director in charge of risk management. The committee
manages the risks that could have a serious impact onmanagement in a cross-sectoral manner, and assesses
and responds to those risks appropriately.
We have also established various bodies including the
Corporate Compliance Committee, Central Safety and
Health Committee, Central Disaster Prevention Council,
Environment Council, Information Securities Committee,
Personal Information Protection Management Committee
and the Export Control Committee, each of which creates and maintains regulations, guidelines and manuals tomanage each risk, while conducting education and training activities. When a committee or council deems a matter to be serious and require urgency, an Extraordinary
Risk Management Committee Meeting is convened at therequest of the relevant committee or council as part ofthe system in place to assess and respond appropriately
to such matters.
The activities of the Risk Management Committee areregularly reported to the Board of Directors. The activitiesof meeting bodies other than those above are reported to
the Executive Committee as appropriate, and to the Boardof Directors when deemed necessary.

In the interests of corporate expansion and sustainable
development, the Company believes it is essential to maintain cooperative ties with various companies. We adopt
a medium-to-long-term perspective for enhancing theCompany’s corporate value, and follow a policy of holding
shares deemed strategically necessary after comprehensively accounting for strategic ties with the companies withwhom we maintain important cooperative relationships,
cooperative business-related ties with supplier, and otherfactors.

■ Risk Management System

Board of Directors
Report■ Number of Issuers and Amount on Balance Sheet
Number of issuers

Total balance sheet amount(Millions of yen)

Unlisted shares

37

484

Shares other than unlisted shares

64

100,391

Number of issuers

Total balance sheet amount(Millions of yen)

Unlisted shares——

Shares other than unlisted shares

10Management and supervision

ReportDetermination of policies, reportingof implementation results, approvalof disclosures (results of TCFD
scenario analysis, human rights
due diligence, etc.)

Executive Committee
ReportRisk Management Committee

CSR Council(Stocks which saw a decrease in the number of shares in fiscal 2021)
Number of issuers

Total balance sheet amount(Millions of yen)

Unlisted shares

1

27

Shares other than unlisted shares

3

196

Corporate Compliance Committee

Central Safety and
Health Committee

Environment Council

Market Measures Review Board

Information Securities Committee

Central Disaster
Prevention Council

Deliberation and decisions on policies, plans and measures regarding
CSR issues (risks and opportunities),
action reports

Deliberation and decisions on important matters of great urgency

Personal Information Protection
Management Committee

Once a year, the Company verifies, in both qualitative andquantitative terms, the benefits and risks associated with
its individual cross-shareholdings from a medium-to-longterm perspective, also taking into account nature and scaleof transactions, among other factors. These findings arereported to the Board of Directors.
In fiscal 2021, the Company sold all shares held inthree companies in light of verification by the Board of
Directors in February 2021.

(Stocks which saw an increase in the number of shares in fiscal 2021)

Representative Director

Export Control Committee

Verifying the Appropriateness of Cross-Shareholdings

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

55

Data Section

Financial Data
Japan GAAPUnit

FY2011*7

FY2012FY2013

FY2014

Sales revenue(Billions of yen)

465.1

559.7

601.6

625.2

Business profit(Billions of yen)

26.3

49.7

56.6

59.1

(%)

5.7

8.9

9.4

9.4

(Billions of yen)

11.6

32.6

35.0

40.5

Profit and Loss

Business profit margin
Profit attributable to owners of parent
Financial Position
Total assets(Billions of yen)

501.8

543.8

653.6

734.5

Interest-bearing debt

(Billions of yen)

162.0

146.3

175.3

184.3

Equity attributable to owners of the parent(Billions of yen)

162.2

204.2

270.8

323.6

Ratio of equity attributable to owners of parent*1

(%)

32.3

37.5

41.4

44.1

Return on assets*2

(%)

2.4

6.2

5.8

5.8

Return on equity*3

(%)

7.1

17.8

14.7

13.6

(Times)

1.00

0.72

0.65

0.57

Management Indicators

D/E ratio*4
Cash Flows
Cash flows from operating activities(Billions of yen)

8.1

59.2

46.7

59.0

Cash flows from investing activities(Billions of yen)

(26.7)(30.5)(44.6)(53.7)

Free cash flows(Billions of yen)

(18.5)

28.6

2.1

5.3

Cash flows from financing activities(Billions of yen)

12.8

(30.7)

8.5(0.1)

Investment
Capital expenditures*5(Billions of yen)

22.4

28.1

33.5

55.3

Depreciation & Amortization*5(Billions of yen)

19.9

25.0

24.0

27.4

R&D expenses(Billions of yen)

9.3

12.8

12.6

13.4

(%)

4.8

8.7

7.2

8.1

Return on Invested Capital
Dividends per share
Annual

(yen)

7

20

22

26

Dividend payout ratio*6

(%)

20.19

20.44

20.31

10.37

Earnings per share

(yen)

34.68

97.87

108.32250.67Unit

FY2011FY2012FY2013

FY2014Non-financial Data
Business
3,817

4,223

4,589

4,868

(thousand tons)

644

602

596

668

Emissions of greenhouse gases Scope 1-2(thousand tons)

642

617

610

685

Emissions of greenhouse gases Scope 3*11

(thousand tons)——

23,30130,844

Patents *9
Tire production volume*10
Environment

Total energy consumption*12

(MWh)

—

—

—

1,231,611(thousand tons)

32,07026,757

18,16530,967

(%)

96

97

93

97

(thousand m3)

9,011

8,380

8,525

8,660

(%)

8

15

32

32

2

4

10

10

308,879

391,371487,384

602,232

143

228

329

447

Total number of employees (consolidated)

19,272

19,412

19,77021,441

Total number of employees (non-consolidated)

5,488

5,428

5,336

5,316

Total amount of waste (consolidated)
Recycling rate (consolidated)
Total water withdrawal (consolidated)
Biodiversity preservation activity implementation rate at production sites (%)
Number of production sites implementing biodiversity preservation activities
Cumulative number of trees planted and saplings provided
under YOKOHAMA Forever Forest Activities
Cumulative CO2 absorption and fixation volume (tons)(tons)

Employees

Percentage of female employees (non-consolidated)

(%)

5.8

5.9

6.3

6.6

Percentage of persons with disabilities (domestic)*13

(%)

1.8

2.1

2.1

2.1

10

12

10

15

0.36

0.44

0.59

0.08

Number of employees taking childcare leave (non-consolidated)
Rate of lost-worktime injuries (consolidated)*14

56

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Initiatives of Sustainability

Corporate Governance

Data SectionIFRS
FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

629.9

596.2

646.3

650.2

650.5

551.1

670.8

54.5

42.3

58.3

59.3

50.1

35.9

62.2

8.7

7.1

9.0

9.1

7.7

6.5

9.3

36.3

18.8

40.0

35.6

42.0

25.9

65.5

710.7

903.0

920.8

855.8

907.6

860.4

985.0

190.9

336.4

315.6

260.4

239.9

207.8

177.2

339.0

348.8

379.8

374.0

418.9

415.5

525.3

47.7

38.6

41.2

43.7

46.2

48.3

53.3

5.0

2.3

4.4

4.0

4.8

2.9

7.1

11.0

5.5

11.1

9.5

10.6

6.2

13.9

0.56

0.96

0.83

0.70

0.57

0.50

0.34

68.3

57.5

75.4

60.5

82.8

75.4

78.3

(55.1)(166.5)(29.7)(43.1)(43.6)(27.9)(4.5)

2.5(91.1)

30.7

39.7

31.7

50.4

63.8

(6.4)

100.2

(28.1)(64.9)(35.5)(46.6)(55.2)

50.9

35.9

39.9

46.9

51.3

28.4

38.8

31.4

33.2

34.6

36.8

36.0

37.5

38.3

14.2

14.5

15.1

15.2

15.0

14.1

15.3

7.3

3.0

5.7

6.1

6.5

4.5

8.2

39*8

52

62

62

64

64

65

17.25

44.38

24.87

27.91

24.46

39.00

15.91

226.07117.17249.32222.12261.61164.09408.47FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

4,941

5,109

5,480

5,675

5,956

6,291

6,009

681

662

685

678

866

799

962

697

714

716

720

1,052

986

1,099

23,831

23,92023,23722,055

24,155

22,58025,701

1,313,523

1,341,111

1,353,082

1,333,451

1,787,203

1,678,571

1,858,043

32,90135,782

43,99153,04452,564

48,27552,558

96

91

97

95

96

95

95

8,682

8,925

8,266

8,102

8,718

8,036

8,494

40

41

43

47

49

49

50

12

14

18

20

21

21

21

682,394

756,039

853,047

943,788

997,401

1,039,318

1,089,655

576

711

858

1,009

1,173

1,358

1,576

22,187

24,61025,43926,27427,42827,252

27,222

5,263

5,242

5,245

5,473

5,543

5,574

5,257

6.6

6.7

6.8

7.1

7.3

7.4

7.5

2.0

2.3

2.2

2.2

2.4

2.5

2.6

30

31

30

35

37

40

35

0.38

0.60

0.50

0.36

0.26

0.20

0.20

*1. Ratio of equity attributable toowners of parent = Total equity
attributable to owners of parent /Total assets × 100*2. Return on assets = Profit attributable to owners of parent / Assets(average of previous and current
fiscal period) × 100*3. Return on equity = Profit attributable to owners of parent / Total
equity attributable to owners ofparent (average of previous andcurrent fiscal period) × 100*4. Debt-to-equity ratio = Interestbearing debt / Total equity attributable to owners of parent*5. From 2019 onwards, depreciation
on right-of-use assets is excluded
due to the application of IFRS 16
Leases.
*6. Payout ratio = Dividend per share /Earnings per share*7. The accounting period from
FY2012 onwards was changed
from April 1 - March 31 to January
1 - December 31. For this reason,nine months of financial results
are reported for FY2011.
*8. On July 1, 2015, the Company
conducted a one-for-two reverse
stock split.

*9. Includes pending patents.
*10. Total volume based on tire
product weight*11. Calculated and disclosed since
FY2013*12. Calculated and disclosed since
FY2014*13. Four companies, The Yokohama
Rubber Co.,Ltd., Yokohama Peer
Support Co., Ltd., Yokohama Tire
Japan Co., Ltd., Yokohama
Industrial Products Japan Co.,Ltd.
*14. An indicator of the frequencyof occupational accidents,
expressed as the number of
employees experiencing lost
worktime due to occupational
accidents per million total hours
worked.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

57

Data Section

Corporate Information(as of December 31, 2021)

Corporate Data
Company NameThe Yokohama Rubber Co., Ltd.

Established

October 13, 1917

Paid-in Capital¥38,909 million

Sales revenue¥670,809 million (Consolidated basis)

Fiscal Year-end

December 31

President, Chairman of the Board

Masataka Yamaishi

Head Office36-11, Shimbashi 5-chome, Minato-ku, Tokyo 105-8685, Japan

Mainstay Products•TiresTires for passenger cars, trucks and buses, light trucks, mining and construction equipment,
industrial vehicles and agricultural and forestry machinery, aluminum alloy wheels and automobile-related components•Multiple BusinessHigh pressure and resin hoses, couplings, conveyor belts, fenders, marine hoses, aircraftcomponents (water tanks), etc.
•Others
Golf-related products, Information processing services, and others

Number of Employees

5,257 (Non-consolidated basis)
27,222 (Consolidated basis)

Group Sites
Major regions of operation
Business operations:

28 countries

Europe13
Personnel: 1,064

Japan

Major sites:

70
Personnel: 9,701
Major sites:

Asia

39
Personnel: 13,374

North America

19
Personnel: 2,871
Major sites:

Major sites:

South America

3
Personnel: 212
Major sites:58

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

Value Creation Stories

Growth Strategies

Financial & Non-Financial Highlights

Share Information

Initiatives of Sustainability

Corporate Governance

Data Section(as of December 31, 2021)

Basic Information
SectorRubber products

Stock exchange listing

Prime Market of the Tokyo Stock Exchange

Stock code

5101

Fiscal Year-end

December 31

Record dates

December 31 (June 30 for interim dividends)

Trading unit

100 shares

Authorized number of shares

400,000,000

Number of shares issued and outstanding

169,549,081

Number of shareholders

17,486■ Shareholder Categories
Category

Number of shareholders

Holdings (hundreds)

Percentage of total (%)

16,671

148,188

8.74

Financial institutions

83

808,715

47.69

Other domestic companies

264

276,509

16.31

Foreign entities

406

289,400

17.06

Security companies

61

83,337

4.91

Treasury stock1

89,3395.26

17,486

1,695,490

100

Holdings (hundreds)

Percentage of total (%)*

The Master Trust Bank of Japan, Ltd. (trust account)

241,630

15.04

Zeon Corporation

162,700

10.12

Custody Bank of Japan, Ltd. (trust account)

110,197

6.86

Asahi Mutual Life Insurance Company

109,055

6.78

Mizuho Bank, Ltd.

61,300

3.81

Individuals and others

Total■ Largest Shareholders
Shareholder Name

* Percentage of total is calculated based on total shares outstanding excluding treasury stock.

THE YOKOHAMA RUBBER CO., LTD. Integrated Report 2022

59

For more information

The Yokohama Rubber Co., Ltd.

36-11, Shimbashi 5-chome, Minato-ku, Tokyo
105-8685, Japan
Corporate Social Responsibility Planning Department
Tel. +81-3-5400-4705
Corporate Communications Department
Tel. +81-3-5400-4531