Yokohama Rubber

Caring for the Future

CSR Report 2018

Yokohama Rubber
CSR Report
Contents

Corporate Philosophy

Contents / Editorial Policy

01

Message from the Chairman

02

Message from the President

03

Main Products of Yokohama Rubber 05
GD2020 Medium-termManagement Plan

07

Safety and Disaster
Prevention Initiatives

08

CSR Slogan “Caring for the Future” 09
Corporate Governance11

Products

13

Environmentally-friendly products

13

3R promotion initiatives

15

Initiatives to improve
quality and reliability

17

The Earth19

Yokohama Forever Forest activities

19

Building a sustainable supply chain 21
Initiatives aimed at savingenergy and promoting the useof natural energy sources25

People27

Initiatives to foster
diversified work styles

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.

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

Action Guidelines

Corporate Slogan

27

Excellence by nature

Creating workplaceenvironments that make working
easier for all employees• Develop ourselves sothat we may give ourpersonal best.

29

CSR Slogan

Community

31• Trust, challenge andimprove one another.

Contributing to safety
at the local level31• Nurture a welcoming,
open spirit.

Caring for the Future

Contributing to improving
lives in local communities

33

Yokohama Rubber Group at
a Glance / Financial Indicators

35

External Evaluation

37

Summary of Third-party Opinion

38

Editorial
PolicyThe Yokohama Rubber Group is implementing measures to help solve the various
problems affecting society, with the aim of realizing our corporate vision: “to build atrusted identity as a contributing member of the global community.” This Report was
created to share the Yokohama Rubber Group’s policies, approach to CSR, orientationand performance with each of the Group’s stakeholders in a concise and clear manner.
More details about the Yokohama Rubber Group’s CSR activities are provided on our
CSR Website (which follows the GRI standards), and in our Securities Report and Annual
Report; we suggest that you read these other materials in combination with this Report.
Period covered by the Report: January 1, 2017 to December 31, 2017
(Information includes some activities
which were conducted in and after January 2018)
Date of publication: November 2018 (the Report is issued annually)* Please note that the Yokohama Rubber Group’s CSR Website is scheduled to be updated in January 2019.

01

Message from the Chairman
In 2017, the Yokohama Rubber Group celebrated its 100th
anniversary, which marked an important milestone in ourdevelopment. 2017 was also the final year of implementationof the Group’s Grand Design 100 (GD100) medium-term
management plan, which was launched in fiscal 2006, andwhich has enabled us to achieve steady growth and to put
ourselves firmly on the right track. Looking back over the
implementation of GD100, what I am particularly struck by is
how important it is to ensure that business operation
provides all stakeholders with a sense of security. In addition
to our high-quality manufacturing, the ESG (Environmental,
Social and corporate Governance) measures that we
implement in order to realize a fair, harmonious relationshipwith society and with the natural environment also
constitute important foundations for the Yokohama Rubber Group, and it is vitally importantthat we continue to implement ESG measures in the future as an integral part of corebusiness activities.
In light of the above, in 2017 we adopted “Caring for the Future” as our CSR slogan. Thisphrase embodies our commitment to aiming for harmonious coexistence and mutual
prosperity with all of our stakeholders – including our customers, our suppliers, local
communities, and the global environment – as we move forward into the future. It is very
important that “Caring” be more than just a word, but rather something that is reflected inpractical, meaningful action. Given that we will be continuing with the global expansion of
our business operations, the stance that we adopt in relation to CSR will be the target ofever-more rigorous scrutiny in the future.
What is especially important is that all Yokohama Rubber Group employees should think of
CSR as representing an extension of their day-to-day work activities. Today, the relationshipbetween the UN Sustainable Development Goals (SDGs) – which are a major focus ofattention for the international community – and employees’ activities is becoming steadily
more important. We, all of us need to think about how we can contribute towards therealization of the SDGs through our work, and to recognize on a deeper level that this issomething of direct personal relevance to each and every one of us. For example, there are
steadily rising expectations regarding the need for environmentally-friendly manufacturing;
we need to view this as more than just responding to customers’ needs, but rather as a signof major changes to come, and we need to recognize the importance of getting serious
about tackling the problems affecting the global environment.
By implementing the types of actions outlined above, we will be raising awarenessthroughout the Yokohama Rubber Group and making steady forward progress, so that theGroup can continue to enjoy the trust of society as a whole and so that we can achieve afurther 100 years of continued growth.

Tadanobu Nagumo
Chairman and Representative Member of the Board

02

Message fromthe

PRESIDENT

Message from the President

Entering the 101st year
since our establishment
Looking ahead to the next 100 years
Masataka Yamaishi
President and Representative Member of the Board

03

Looking back on our 100th anniversary
On October 13th, 2017, Yokohama Rubber celebrated its 100th
anniversary.
At the commemorative ceremony held to mark this occasion, we
expressed our thanks to the stakeholders who have been with us
through both the good times and the bad times, and we received
many much-appreciated messages encouraging us to continue ourefforts in the future.
Our company was founded during the First World War, andsubsequently had to overcome major difficulties resulting from theGreat Kanto Earthquake of 1923, the global depression of the 1930s,
and the Second World War; despite these challenges, Yokohama
Rubber has been able to survive and develop over a period of 100
years. Besides showing our gratitude to our predecessors for their
hard work and dedication, in the future we will continue to adhere to
the spirit of “working faithfully to keep an enterprise growing after it
has been established” by creating new achievements whilesafeguarding the valued traditions of our company.
Over the period from 2006 to 2017, the Yokohama Rubber Groupwas implementing Grand Design 100 (GD100) medium-term
management plan. As a result of the implementation of GD100, bycomparison with 2005 our net sales rose by approximately 50%, ouroperating income increased by 30 billion yen, our market
capitalization doubled, and our operating margin rose by 3
percentage points. A particularly noteworthy feature of this period
was that, while overseas markets’ share of total sales continued togrow, we also realized several important technological achievements,
including the raising of the share of all Yokohama Rubber productsthat are classed as environmentally-friendly products to 100%.

of each individual business and by carefully studying customer needs.
One point that I particularly wish to emphasize is that Safety,
Quality and Compliance are fundamental aspects of all of thesebusiness activities. If we neglect Safety, Quality and Compliance, thenit will be impossible for our business activities to win the trust ofsociety and of our many different stakeholders.
In 2017, Yokohama Tire Philippines, Inc. (YTPI) experienced a fire
which caused serious damage; this incident was a cause of concern formany related parties. All employees will be participating in
inspections and overhauling relevant systems so that, if any incident
occurs that affects our operations in the future, we can ensure
thorough implementation of the “Stop” – “Notify” – “Wait” safety rule,ensure the maintenance of a safe working environment, and, when an
incident does occur, make sure that it is prevented from spreading,and bring about the restoration of operations as speedily as possible.
With this in mind, we are implementing measures that combine avariety of different approaches. In my own role as President, I will be
issuing a “Top Message” that takes the form of an e-mail sent directlyfrom me to each and every Yokohama Rubber Group employee,emphasizing the importance of Safety, Quality and Compliance.
Senior managers will be implementing top-down measures toeliminate risks by visiting individual factories etc., and we will also be
utilizing bottom-up measures that encourage individual employees
to put forward relevant ideas that they have come up withthemselves.

About the Group’s GD2020 medium-term
management planThis year, the 101st year since our company was founded, we launchedGrand Design 2020 (GD2020) medium-term management plan, which
will be implemented over the period between now and 2020. Under
GD2020, we will, in a sense, be focusing on the everyday
fundamentals of business activity, working to recoup our investments
and build on these achievements to realize further growth.
Over the medium and long term, the automotive industry can be
expected to see major changes, due to the technology revolution
represented by autonomous driving technology, etc. At the sametime, demand for premium cars is rising throughout the world, andthe market for premium tires that can be fitted to these cars is
expanding. By making effective use of Yokohama Rubber’s existing
strengths, we are able to manufacture high-value-added tires for the
consumer tires segment, so I am confident that we can meetcustomers’ needs in the premium tire market. While continuing to
strive for further improvement in the area of environmental
performance, which is already one of our company’s strengths, andemphasizing speed and comfort, we will also be working to win
customers’ trust, so that they know they can use our products withpeace of mind. In addition, we will be making effective use of digitalmarketing to build direct links with the customer and develop
products that precisely match customers’ needs.
In the commercial tires segment, Yokohama Rubber’s individual
factories, as well as Yokohama Rubber Group member companies
Alliance Tire Group (ATG) and Aichi Tire Industry, each has its own
unique competitive strengths. By leveraging these strengths, we will beaiming to achieve a further increase in sales revenue in this segment.
Yokohama Rubber’s non-tires businesses are grouped together inthe MB Group (Multiple Business Group). Here too, we will be working
to realize an increase in sales, by making effective use of the strengths

A lecture being given at a company-widesafety and disaster prevention meeting

Working to solve international problems and fulfilling
our social responsibilities in a way that reflects thecore values of the Yokohama Rubber GroupIn the process of implementing Grand Design 2020 (GD2020)
medium-term management plan, living up to our customers’
expectations and dedicating ourselves to the development of society
will be of key importance in ensuring a further 100 years of growth.
To achieve this, we are working to put in place a working
environment that will support the dynamic engagement of a diverse
range of human talent. We will also be responding to globalization byproactively cultivating local talent at our overseas business operations.
Acting in a way that reflects the core values of the Yokohama
Rubber Group involves building close relationships with our
stakeholders and growing together with local communities in each of
the countries that we operate in. In order for us to be able to continue
to share joy and happiness with our stakeholders over the next 100
years, everyone in the Yokohama Rubber Group needs to be working
together to address international problems and fulfil our corporatesocial responsibilities.

04

Main Products of Yokohama Rubber
Automotive Components
Tires for passenger vehicles

Tires for trucks and buses

Tires for construction
machinery and industrial
machinery

Tires for agricultural
machinery and forestry
machinery

We have a lineup of tires for avariety of car models including
sports cars, sedans, SUVs, andminivans.
This lineup also includes the
new product ADVAN dB that is apremium comfort tire.
The goal was to achieve an
unprecedented level of silent
performance. Refinements toachieve this level of silence change
the very ambience of the cabin.*1

We have a lineup of tires that offers
not only basic functions such as
economic efficiency, durability,
and safety, but that also matches
use conditions including seasonal
conditions and road conditions.
The truck and bus tires 710R
features maximized abrasion
resistance performance anduneven wear resistance
performance, and aims to improvesafety when there is an empty loadin rainy conditions.

We have a lineup of tires for giant
dump trucks, scrapers that level
the ground, wheel loaders thatcarry dirt, and dozers that conduct
earth removal work. The rigid
dump truck tire RB42 forconstruction and mining
demonstrate excellent abrasion
resistance and traction on soft
ground and swampy ground.

These tires are manufactured andsold by the Alliance Tire Group*2
and used for tractors, harvesters,
combines and so on.
The FarmPro II is the world’s first
VF flotation tire offers thepossibility to be operated at 30%
lower inflation pressure as aconventional flotation tire. Low
inflation pressure ensures wide
footprint resulting in minimum soil
compaction, better traction andenhanced fuel efficiency.

*1: In Yokohama Tire’s history*2: Yokohama Rubber Group company that manufactures and sells off-highway tires

Windscreen adhesive sealant(adhesive for windshield)
Hose for construction
machinery

Hoses for car air
conditioners

This is a hydraulic hose forconstruction machinery andindustrial machinery. The Versatranhose in the photo is for construction
machinery and it is in conformancewith overseas standards (SAE, EN). It
is characterized by its flexibility fromthe optimization of materials and its
low minimum bending radius. In
addition, cover rubber that supports
flame resistant standards (MSHA) has
been used.

Hot melt adhesive(adhesive for lamps)

Large differences in the sizes of tires (external diameter)
cm
250
200
150
100
50
0

Tires for passenger
vehicles49 to 70 cm

05

Tires for agriculture machineryand forestry machinery
52 to 216 cm

Tires for trucks and buses
84 to 108 cm

Tires for construction machineryand industrial machinery
6 to 355 cm* A tire with an external diameter of 6 cm is used in a dolly.

Petroleum, Mining, Construction, Aerospace, and Sports-related
Sealants for construction

Component for aircraft (drinking water tank)This material is used to fill the gaps in structures to improve theairtightness and waterproof performance of buildings. The new product“Hamatite SC-DM2” is a polysulfide sealant for joints of concrete and tile
floor (or dirt floor), and because it hardens faster than products up until
now, it has enabled shorter construction periods. The product has a highlevel of hardness and it excels in weatherability and oil and chemical
resistance thanks to the unique compounding technologies that are used.

This is a drinking water tank for an aircraft. It has been manufactured bywrapping thread such as glass or carbon fiber impregnated with plastic
such as epoxy above an inner liner that has been molded seamlessly, and it
meets high resistance to pressure and acceleration while having a low
weight. It has been manufactured with materials that are suitable fordrinking water under standards such as the US FDA and NSF-61.

Marine hoses

Fenders

Hoses

Golf products

These are hoses for connecting
tankers anchored offshore andonshore facilities and transporting
crude oil. Since the hoses are
installed in the special
environment of the ocean,abundant experience andadvanced technical capabilities
are required for design that fulfills
durability requirements in order
to withstand severe storms suchas typhoons. There are only a very
few companies around the world
capable of designing andmanufacturing marine hoses.

Yokohama Rubber has developed
the air fenders that are currently
being used broadly around theworld. We first manufactured andsold a product in compliance withinternational standards in 2003,
and we developed the world’s
largest air fender with a diameterof 6 m in 2017. We have focused on
being the first in the world withthese products.
P.14

Yokohama Rubber sells
high-pressure hoses for various
machine tools. The GT420 with amaximum use pressure of 42MPa
has been added to the “GT Series”,
hoses for water and grout used forground improvement. The hose
structure has excellent ultra-highpressure performance and a hosecover with high abrasion
resistance has been used toprevent external damage.

The PRGR Co., Ltd.* golf products
exploit outstanding design
technologies and materials
technologies fostered in aircraft
and aerospace fields. The Q is a
new club based on a new conceptthat makes golf more enjoyable
and it easier to improve a scoreby helping to save shots from
unfavorable positions. It is a pieceof all-round equipment that will
help amateur golfer get a betterscore.
* Yokohama Rubber Group company that
manufactures and sells sporting goods

06

GD2020 Medium-termManagement PlanThe Yokohama Rubber Group has promoted global expansion and grown steadily over the 12 years of GD100. We havestarted the GD2020 medium-term management plan from fiscal 2018 as the next step. GD2020 is a framework for fortifying
our business foundation by redefining our strengths and by deploying a growth strategy based on original approaches.
We are counting on that framework to support new strides for the Yokohama Rubber Group in the decade of the 2020s.

Growth Strategy
We will pursue a technology strategy of creating products of superior
performance and quality through the company’s unique capabilities incontrolling physical properties and a global network of R&D platforms and abrand strategy of strengthening the Yokohama brand on a global level as
we implement our growth strategy in each business field.

Consumer Tires

Commercial Tires

MB Operations

Expand our presencein the premium tire
marketMake commercial tires
a pillar of revenue
driven by OHT*

Allocate resources ona priority basis tobusiness fields ofstrength

Growth strategy• Consumer tires• Commercial tires• MB (Multiple Business)

Fortify our businessfoundation• Strengthen our financial position• Revitalize our corporate culture• Upgrade risk management* OHT: Off-highway tires (collective name for tires for agricultural machinery,
construction machinery, industrial vehicles, and forestry machinery)

2006 to
2017

2018

2019

2020

From
2021

Fortify Our Business Foundation
・Benign materials
・Energy conservation
・Responsible water usage

As measures to fortify our business foundation, we strengthen of our financial
position by reducing interest-bearing debt and fixed assets, revitalize ourcorporate culture, and implement risk management measures, etc.

Revitalize our corporate culture
In terms of CSR, we will create value through business activities aimed at allof our stakeholders based on the concept of “Caring for the Future”. In
human resources management, we are working to revitalize ourorganization by training and mobilizing human resources effectively, andwe are developing ideal working environments and introducing systems fordiverse human resources.

Strengthening our corporate governance
We will work to upgrade our corporate governance in Japan and overseas.

Strengthen global governance

The global
・Economic and social
・Workplace safety
environment
contribution
・Training andeducation
・Proactive
Host
Employees
communities participation in・Diversity andcommunity life
equal opportunity

Stakeholders

・Product safety
・Monitoring ofBusiness
suppliers’
Customers ・Product and service
performance inpartners
labeling
respecting humanShareholders• Marketingrightscommunicationand other・Preventing
investors
monitoring of childlabor and forced labor• Economic performance

Board of Director system reforms

Positioning our regional management companies as holding companies(strengthening governance at our overseas subsidiaries)
Appointing internal auditors at the regional management companies(strengthening audit structure on subsidiaries)
Setting up whistleblower hotlines worldwide to help detect problems
early and to prevent small problems from escalating

Introduction of a compensation plan with transfer
restricted stock
Increase in number of nonexecutive members anddecrease in number of in-house members

SafetyRisk management
We have established several councils and committees, including the Risk
Management Committee, the Central Safety and Health Committee, and the
Corporate Compliance Committee headed by the CSR Council, and we work
to minimize overall risk by managing systematically the different categories
of risk that we encounter.

Labor

CSR Council
Corporate Compliance
Committee

QualityLegal
Main
corporate risks
Compliance

Environment
Financial

Central Disaster
Prevention Council
Personal Information
Protection Management
Committee

Risk Management
Committee
Central Safety and
Health Committee
Environment Council
Export Control
Committee

Information Security
Committee

For details on the GD2020 medium-term management plan, please see the “Investor Relations” section of our corporate website(https://www.y-yokohama.com/global/ir/company/gd2020/).

07

Safety and Disaster Prevention Initiatives
A fire broke out on May 14, 2017 at the tire plant at Yokohama Tire Philippines, Inc. (YTPI). We would like to again offer our sincerest
apologies to the customers, the local community, and various other affected parties for the inconvenience and concern caused by the fire’s
outbreak and aftermath.
The Group will work company-wide to steadily implement fundamental fire prevention measures to ensure that a similar incident does
not occur in the future.

Overview of the fire
■ Time of outbreak: Around 15:00 local time on May 14;
completely extinguished around 23:00■ Fire stricken area: Approximately 17,400 m2 in north-east area of east plant■ Details of fire:

Buildings and production facilities partially damaged,
products in warehouse destroyed in fire2 people injured in fire extinguishing activities

WORD 添付でない画像を支給ください

Area inside thered lineis the affectedareaFire Recurrence Prevention Measures
The company will verify all of the potential fire causes, and takefundamental measures against them. Furthermore, we will develop
mechanisms that enable faster fire detection and extinction, anddeploy them in production sites all over the world. We will then repeat
inspection on firefighting equipment and fire drills as we work toensure that a similar fire does not occur again.
Fire drills
Rescue training for
injured people

Strengthening Safety Efforts
Although we have conducted various safety initiatives in an aim for thecreation of a safe and ideal working environment and good health, wehave currently not achieved zero work-related accidents.
In response to this situation, we have conducted overall inspections
on equipment at all production sites in Japan and overseas as acountermeasure to discover risks that could cause disasters, such as
areas where people could become pinched by or caught in machineryor areas where people could fall. The management has beenproactively involved in these overall inspections, and efforts are being
made to thoroughly identify and improve all dangerous equipment
based on strong leadership.
We are also expanding risk sensitivity drills to enhance sensitivity torisks so that employees can detect risks in advance and respond tothem.
In addition, we are working to “instill safety awareness throughgrassroots corporate culture and spirit reform” to develop people
capable of working safely and creating a safe workplace. As part ofday-to-day efforts to improve the safety awareness, we distributesafety goods and repeat safety slogans with all employees before work.

Risk sensitivity drills

Details of main efforts to strengthen risk sensitivity drills❶Expand contents of drills: Increase in types of and learningmaterials for risk sensitivity drills at locations including theMishima Plant and YTMT* (improvement in quality)❷Increase the number of times drills are held
❸Expand locations where drills are held: Drills have been
established at all major plants in Japan and overseas,considering expansion
Expected effects❶Honing sensitivity to various types of risks❷Maintain and improve risk sensitivity

Distribution of safety straps

Repeating safety slogans* Yokohama Tire Manufacturing (Thailand) Co., Ltd.

08

CSR Slogan“Caring for the Future”

Under the GD2020 medium-term management plan, we must aim to become a global enterprise that is able tosuccessfully develop localized business operations throughout the world. We will create value through businessactivities based on our CSR Slogan, “Caring for the Future.”

Caringfor the Future
Make life more fulfillingfor people everywhere.

Products

The Earth

PeopleCommunity

Deliver fun
and peace of mind.

Leave a soundenvironment tofuture generations.

Build on each other’s
strengths.

Earn the confidence of
our neighbors.

Corporate GovernanceLay a solid foundation for
fulfilling social expectations.

SDGs
SDGs (Sustainable Development Goals) as common global goals which shouldbe achieved by 2030 that were adopted by all 193 UN member countries at theUnited Nations Sustainable Development Summit in September 2015. 17 goals
and 169 targets have been set as guiding principles for achieving sustainable
development on a global level including the elimination of poverty andpreservation of the natural environment with everyone around the world
including citizens, governments, and companies working together to achieveby 2030.

09

Relationship between SDGs and Caring for the Future
Corporate GovernanceLay a solid foundation for supporting sustainablebusiness activity in accordance with international norms.

Products
Deliver products and services that help people enjoy
fulfilling lives with peace of mind.

The Earth
Address environmental concerns through ouroperations and help leave a sound naturalenvironment to future generations.

PeopleNurture values accommodating diversity inthe workplace and in the community at large.

Community
Earn the confidence of neighbors through robust
community engagement.

Raising awareness on SDGs at the company
Global HR Department provides employee training programs at various steps
such as when employees join the company or are promoted. Training on CSR is
an important part among these programs. We conduct training aiming tounderstand our CSR vision and be able to incorporate it in their work as requiredof each important step of their life course, such as when entering the company,
five years after entering the company, before and after being promoted to a
management position, or before an assignment overseas for our employees.
For a new employee training in 2018, even most participants had heard of
SDGs for the first time in training, they gained a better understanding of theimportance of addressing SDGs through business activities and about thecompany’s CSR efforts through group work.

SDGs group work in new employee training

10

Corporate
GovernanceLay a solid foundation for
fulfilling social expectations

Domestic whistleblower
hotlines

Overseas whistleblower

Domestic whistleblower

Results report

Whistleblowing

Overseas (each country)
whistleblower contact point
Contact

In order to further fortify our business foundation, Yokohama Rubber
made preparations such as information gathering, discussions, anddecision-making in 2017, and implemented Officer structure reformin March 2018. The basic policy towards the company’s Board of
Officers is a structure of people believed to be appropriate that
ensures diversity including nonexecutive officers while taking into
consideration the balance of knowledge, experience, andcapabilities, etc. for each business. In an aim for the efficient
operation of the Board of Officers, we have reduced the total
number of Members of the Board by two in-house members to ten
members, and we have increased the number of nonexecutive
officers by one to four in an effort to ensure transparency ofmanagement and further strengthen corporate governance. The
company’s nonexecutive officers leverage its abundant economic
experience and knowledge at other companies or universities, andholds lively debate based on opinions from independent and neutral
position at the Board of Officers.
In addition, the diversity of Officers has been strengthened in
response to an age of accelerated global expansion and change. We
welcomed our first female nonexecutive auditor. In addition, one
Corporate Officer each was promoted at Yokohama Tire Corporation(the United States) and Alliance Tire Group for a total of two
additional non-Japanese officers to strengthen the structure to
respond to global management issues from various perspectives.
Up until now, the company has adopted a performance-based
compensation system for Members of the Board excluding
nonexecutive officers, and a bonus mechanism that fluctuates inaccordance with the attainment of company-wide performanceand individual performance by each Member of the Board in eachfiscal year. A compensation plan with transfer restricted stock has
been introduced for Members of the Board excluding
nonexecutive officers so that Members of the Board share thebenefits and risks of stock price fluctuations with shareholders andto increase the motivation towards contributing to an increase in
the stock price and corporate value.

11

Domestic whistleblower
contact point

ReportContact

Corporate Compliance Dept.
Improvement
results report

Inspection andimprovement
instructions

Overseas group company

Strengthening the corporate
governance framework

Results report

Improvement
results report

ReportCorporate Compliance Committee

Main points of governancestrengthened during FY2018• Increase in number of nonexecutive members
and decrease in number of in-house members• Greater diversity among officers/auditors –promote our management initiative(2 non-Japanese officers,
1 female nonexecutive auditor)• Introduction of a compensation plan withtransfer restricted stock

Global whistleblower
hotlines

Domestic group company

Global whistleblower hotlines
Yokohama Rubber established the Yokohama Rubber Group
Competition Laws Compliance Policy and Anti-Bribery Policy in
July 2017 with the approval of the Board of Officers, as legal
compliance and response to the risk of bribery are becoming morenecessary with the globalization of business. We aim to prevent
acts that are in conflict with competition laws or acts of bribery bydeclaring this policy inside and outside of the company andprescribing rules and guidelines to embody this policy forindication to members of the company.
At the same time, we are gradually introducing global
whistleblower hotlines that covers group companies focused oncompetition law violations and acts of bribery so that Yokohama
Rubber can directly assess and promptly respond to these risks atoverseas group companies.
In Japan, the Corporate Compliance Department has establishedwhistleblower hotlines called the Corporate Compliance Hotline
and General Counseling Room, while the CSR Procurement Contact
Point has been established as a contact point for business partners
by the procurement department, and some positive results havealready been achieved through these efforts.
Overseas, we have introduced the above global whistleblower
hotlines at regional management companies and tire sales
companies in China. We will gradually develop these hotlines
starting from Asia and expand them to other regions in an aim tostrengthen governance on a global level.
The vision we aim for is a situation in which employees are awareof the Action Guidelines at all business locations including thoseoverseas, the whistleblower hotlines are functioning, and meetingbodies that monitor this system are working. We will work to raise
the level of compliance for the group by promoting the
introduction of the global whistleblower hotlines.

We create a corporate culture
where appropriate decisions are
made with a strong awareness oflaw observance

VOICE

Outside Audit & Supervisory
Board Member[Results of initiatives]
Number of compliance reports

117reports● ● ● ● ● ● ● ● ● ●(FY2017, consolidated)

TOPIC● ● ● ● ● ● ● ● ● ●Corporate Governance

Legal Support Applicationthat assists global expansion

The Earth

User feedback
Using this system makes it possible to automaticallyshare information with everyone involved, and because
it records not only the results of consultations, but also
the developments along the way, we have been able toeliminate wastes associated with creating reports.
(Hidetoshi Watanabe, General Manager, Head of MD*
Promotion Dept.)

PeopleCommunity

I think that my role as a Nonexecutive Auditor, Outside
Audit & Supervisory Board Member is to take advantage ofthe knowledge as a lawyer to check whether there are any
legal problems with business execution by the
management team and whether management decisions
are sufficiently considered without jumping to conclusions,and to point out any suspicions or concerns towards thereasonableness of decisions from an external perspective.
An understanding of the business of the company isimportant in order to fulfill this role, and I have been
provided with the opportunity to make factory visits withinformation in a proactive manner that is easy tounderstand by an external party in situations such asadvance briefings for the Board of Officers, even when time
is limited. One area where problems can often occur is atgroup companies where it can be hard to conduct
thorough checks. I intend to make fair evaluations andaudit from an objective viewpoint based on external
common sense and experience on what degree internal
control is functioning as a group overall. The automobile
industry is undergoing big changes such as the expansionof car sharing and the development of self-driving cars. The
Yokohama Rubber Group is a company with a long history
that is engaged in business on a global level, and I hopethat Yokohama Rubber uses its technical capabilities todevelop new products and develops new business areas as
the world experiences technological innovation andsignificant changes in the behavior of people and theshape of society.

Products

Megumi Shimizu
Nonexecutive Auditor, Audit & Supervisory Board Member
Partner, Attorney-at-Law, Nishimura & Asahi

A system called the Legal Support Application that isavailable on the internal intranet has been developed forrequests (contract reviews, legal consultations, andresponse to disputes) to the Legal Department.
The Legal Support Application makes it possible tosubmit requests to the Legal Department without
limitations on time or location, and the data submitted to
the Legal Department by the requesting department andcomments or review results from the Legal Department,
etc. are recorded and stored in the Legal Support
Application. As a result, information related to requests arecentrally managed and it is easy to understand thebackground of requests later on. Because a record is kept ofthe background in addition to the review results, it also has
the effect of facilitating reports to superiors and hand overat the time of transfers.
Password authentication is required when accessing theLegal Support Application so that viewing of a request is
not possible by people other than people with theauthority to view a given request. Taking security measureswhile setting access privileges makes it possible to sharedetailed information with superiors who have decision
making authority.

* MD: Muda (waste) Dori(elimination). The MD
Promotion Department
is a department thatworks to eliminate alltypes of wastes toachieve efficient andproductive corporate
activities.

12Deliver fun and peace of mind:

Products

Environmentally-friendly products

Turning all our products into
environmentally-friendly ones
As of the end of fiscal 2017, we achieved our target of increasing thepercentage of our products that feature environmentally-friendly
technologies to 100%. We worked under our Action Guidelines toturn all of Yokohama Rubber’s products into environmentally-friendly
product in an aim to reduce our environmental impact from fiscal
2006, which we achieved in fiscal 2017.
Fuel-saving tires[Proportion of environmentally-friendly products
among all products]
%
100.0

94.9

100.0

2011

2014

2017 (FY)

Development of BluEarth-air EF21:
Our Latest Advance in Light-Weight,
Fuel-Saving Tires

67.9

75.0
50.0

88.9

40.0

25.0
0.0

2005

2008

▶ Four criteria for assessing environmental friendlinessWe assess products in reference to our own four environmental
criteria from the procurement of raw materials to disposal andrecycling: prevention of global warming, resource recycling, resource
conservation, and safety and comfort. Our guidelines mandate that
all new products achieve an aggregate improvement of at least 5%
over existing products and that they at least match existing products
in regard to all four criteria. In addition, we have a mechanism that
does not allow commercialization if these criteria are not fulfilled.
Development work on new product candidates includes
establishing targets, and each candidate undergoes a design review
where we determine whether it has attained the targets. No productproceeds to commercialization unless it clears the design review.
An environmental assessment check is incorporated in the review,
and product development is only possible if theEnvironmentally-Friendly Products Regulations are cleared.
Safeguarding the environment will remain a core emphasis inproduct development at Yokohama, and that will include broadening
our measures for preventing adverse environmental impact.

The BluEarth-air EF21 offers new advances in reducing
environmental impact. We have achieved those advances bysupplementing what was our most fuel-efficient tire with the latest
Light-Weight design technology. The BluEarth-air EF21 was alimited-run offering (and has reached the target sales volume).
Reducing tire weight contributes to Fuel-Saving by reducing
overall vehicle weight, and it also means a reduction in material
consumption, which contributes to reduction in the environmental
impact. We achieved a weight reduction of 25% in the BluEarth-air
EF21 with design breakthroughs that engender a thinner,
more-rigid structure.*1 *2
The BluEarth-air EF21 has earned the highest ratings under Japan’stire-labeling system for Rolling resistance (AAA) and for Wet Grip (a),and it combines Fuel-Saving performance with superior safety.
*1 The reduction in mass is in comparison with the ADVAN dB V551, a Yokohama
benchmark for tire mass.
*2 We have submitted data for the tire specifications and performance toJapan’s Tire Fair Trade Council.

[Four environmental functions and environmental metrics][Weight-Reducing Tire Concept]

Environmentally-friendly products

Contribution to combating global warming
Environmental
functions

Environmental
metrics

Prevention of
global warming

Resource recycling

Resource
conservation

Safety and comfort

Low fuel
consumption
Emissions of CO2
Energy conservation

Recyclability
Retread performance
Proportion ofnatural materials

Reduction of weight
Wear life
Reduction coefficient
Uneven wear
resistance life
Development period

Braking and noise
performance
Pleasantness
Reduction of SOCs
Reduced pollution→ environmentallyfriendlier
Welfare and nursing
care applied products

Percentage ofrecycled materials

LCA evaluation

13

Tread: approx. -13%
Contribution tosafety and comfort

Side: approx. -10%

Comparison with V551
Bead wire: approx. -2%

V551

EF21

We continue to respond to changing
needs by providing safe andhigh-quality products and services[Results of initiatives]
Proportion of environmentally-friendly
products among all products

100%

VOICE

VOICE

Developer of BluEarth-air EF21

PeopleMasatoshi Kuriyama
Tire Designing Dept. No.1 Group No.1
The BluEarth-air EF21 is a breakthrough product that has
achieved a significant weight reduction while maintaining
the highest levels for Wet performance, Rolling resistance,and Wear resistance that are inherently conflicting features.
Dedicated compounds and the latest rubber mixing
technologies have been adopted through engagement
between structural design personnel and materials design
personnel to achieve something that has not been possible
as an extension of tire development up until now. We willleverage the concept of lightness going forward as we
continue to aim for low-price tire products that are highquality, long life, and environmentally-friendly.

Community* Liquefied natural gas

This project was started in response to the needs for MEGA
Yokohama Floating Pneumatic Rubber Fender along withincrease in ultra-large ships so as those used for LNG
transport around the world. It was extremely difficult toachieve a good balance when trying to increase thediameter to 6m because pressure resistance tends toworsen if size is prioritized. We were able to clear thesechallenges by introducing materials and manufacturingmethods differing from conventional ones through aprocess of trial and error. With the cooperation of people
from many different departments, we were able tocomplete fenders that are top-class in terms of size, quality,and performance for the first time in the world.

The Earth

A fender is a cushioning product that fulfills the role of preventing
damage to the hull and the quay wall during ship-to-ship
operations or when ships are moored.
Yokohama’s floating pneumatic fenders are fenders using thepower of air as the first fenders in the world developed using rubbermaterials technologies. These fenders have many benefits including
little degradation in performance after repeated use or changes in
performance from the impact from crashing or changes in thetemperature, and these fenders are widely used as materials forship-to-ship operations or mooring in a wide variety of fields
including oil, mining, fisheries, and offshore drilling. By using theworld’s largest with a diameter of 6m that was developed by thecompany in December 2017 for LNG-FPSO (floating production,
storage and offloading system) where demand is expected toincrease as demand for LNG* rises, it has become possible tomaintain a greater distance apart than that with previously existingfenders to increase the safety of offloading operations.
If an accident were to occur on the sea, it could cause immense
damage to the environment and marine life. If fenders that do not
fulfill quality standards become accidentally damaged, it could also
result in damage the hull or the death or injury of a crew member.
These can be folded down to a small size for delivery to the site,
as a product that can reduce transportation costs and energy
consumption at the same time.

Kouko Suzuki
Industrial Products Technical Dept. Group No. 3

Products

Contributing to safer cargo loading throughthe development of MEGA Yokohama Floating
Pneumatic Rubber Fender

Developer of MEGA Yokohama
Floating Pneumatic Rubber Fender
Corporate Governance

MEGA Yokohama Floating Pneumatic Rubber Fender(FY2017, consolidated)

Offloading operations between two ships

14

Products

Deliver fun and peace of mind:
3R promotion initiatives

Newly
manufactured tires

Use

Use

New tires
Period of use (first life)

Retread tires
Period of use (second life)

DisposalYokohama dealers and sales companies

Retreadtires

Manufacturing with only 32%
of oil resources used in newly
manufactured tires is possible.

A reduction in CO2 emissions byapproximately 60% during tire
manufacturing and disposal canbe achieved compared to newly
manufactured tires.

68% savings

Newly
manufactured
tires

Retread
tires

100%

Source: Japan Retreaders’ Association

Newly
manufactured
tires

CO2

Retreadtires

Approximately

60% savings

CO2
Source: Calculated based on “Life Cycle Inventory Analysis for Tire”
released by the Japan Rubber Manufacturers Association

3R promotion: Retread tires initiatives
Yokohama Tire Retread (YTR) is engaged in the manufacturing andsales of retread tires. Retread tires are tires that have been reusedthrough replacement of tread rubber that has worn out to restore
function as a tire. People have a high level of recognition andunderstanding of retread tires in Western countries, and the ratio ofretread tire sales to the total sales of tires including new tires is atleast 40%. However, in Japan, this ratio is currently less than 20%.
They are mainly used as tires for trucks, buses, trailers, and dump
trucks. YTR will strengthen cooperation with the related companies
in the Yokohama Rubber Group and aim for the further spread ofretread tires.
In light of the characteristics to the left, these retread tires offer
strong environmental conservation effects from the perspective of
the 3Rs (reduce, reuse, and recycle).

In terms of the production method, so-called “Remold method”
is used in which a tire with unvulcanized* ribbon shape rubbers
wrapped to a tire casing is vulcanized in a mold. Feature of thismethod is high quality of appearance and suitable for mass
production.
Another benefit is possible to apply tread design similar to new
products. From year 2018, we also release wide-based tires (twotires replace to one of wide tire) for trailers and tanker trucks, andthis has resulted in further contributions to the reduction ofenvironmental impact.
* Vulcanization: Process in rubber raw materials are heated after sulfur or othermaterials in order to strongly bond the rubber molecules and improve theproperties of the rubber in terms of elasticity and strength.

Characteristics of retread tires
Low environmental impact: The environmental impact islower because of approximately 32% of the petroleum
resources (mass ratio, calculated by National Council on Retread
Tires) required for production and approximately 40% of theCO2 emissions during manufacturing compared to new tires.
Excellent economic efficiency: Because new truck and bus
tires are basically designed while consideration to durability
including retread usage, retread leads to total cost reductions.
Ensures sufficient quality, performance, and service: YTR issubject to regular quality inspections and quality evaluations by
Yokohama Rubber, and after-sales service equivalent to that for
new products is provided.
Vehicle wearing wide-based tires Size: 385/65R22.5 Yokohama MY507A

15

We preserve limited resources
for the future[Results of initiatives]
Ratio of recycled materials in products

2.3%(FY2017, consolidated)

Achievement rate of
total zero-emissions for wastes

100%

VOICE

TOPIC

● ● ● ● ● ● ● ● ● ●● ● ● ● ● ● ● ● ● ●Corporate Governance

Retread tire production sitesthat are also addressing resource
issues through quality oriented
manufacturing(FY2017, consolidated)

Received Award for Resources Recirculation
Technologies and Systems for reduction
activities in the manufacturing process

Grinder
screen mesh

Effect from a)Pellet → Reuse

The EarthEffect from b)
Fine powder

Reuse Dust collector,
etc.
Beforeimprovement

Ø12

After
improvement

Ø20

70%

0%

30%

85%

5%

10%

PeopleOsamu Takahashi: We believe that demand will continue
to grow for wide-based retread tires. Because the voice todevelop this tire is getting larger. So we have prepared
several new equipment for manufacturing this size. The
entire YTR Saitama is working to manufacture this productto comply customers’ requests.
Ryu Takahashi: Because the Saitama Office became thefirst of YTR’s four offices in Hokkaido, Saitama, Nagoya,
and Onomichi to manufacture wide-based tires, I feel bothvery honored along with a feeling of responsibility. We
intend to make high-quality retread tires and contribute toresource issues.

Products

Yokohama Tire Retread (YTR)
Right: Osamu Takahashi, Senior Managing Officer andHead of Saitama Office (at the time)
Left: Ryu Takahashi, Manufacturing Section Manager

The Ibaraki Plant received the FY2017 Award for Resources
Recirculation Technologies and Systems* for effort to
reduce rubber mold materials in the hose manufacturing
process. Rubber mold materials cover the outer surface
rubber when a hose is manufactured, and they can be used
repeatedly for about 30 times by peeling off from avulcanized hose, grinding, melting, and molding. However,an issue faced is that the amount of materials recovered
decreases as the recycling process is repeated. We havemade significant improvements to this process throughtwo initiatives.
a) We have suppressed the occurrence of fine powder bymaking the screen mesh of the grinder larger andmaking the holding time in machinery shorterb) By using a conveyor belt instead of air transport, fine
powder can be used as materials for the next moldwithout falling in the dust collector

Ø (phi): represents the diameter

Community

As a result of these efforts, we have improved thematerials recovery rate after use 30 times from 70% to 90%,
and reduced the annual usage amount of rubber moldmaterials by 3.6 tons.
* Awards provided to promote
excellent business andinitiatives that contribute to
the suppression of theoccurrence of waste, reuse,
and recycling. (Sponsored by:
Japan Environmental
Management Association for
Industry)
Wide-based size retread tires subject to rigorous evaluation by
Yokohama Rubber after the prototype was made at the Saitama Office16

Products

Deliver fun and peace of mind:
Initiatives to improve quality and reliability

Work examination

Written examination

Service Skills Contest National Championship
The Yokohama Tire Sales Group including Yokohama Tire Japan
holds a Service Skills Contest for personnel at commercial tire
directly-managed stores once a year for the purpose of ensuringthat the same high-level of tire service is offered at all locations
throughout Japan.
For the third such contest in fiscal 2017, the written
examination was held at a hotel in Yokohama, Kanagawa
Prefecture in September. On the day following the written
examination, a skills test was held at the Honmoku Branch of
Yokohama Tire Network Service Shutoken.
The qualifying round was participated in by one representativefrom 150 commercial tire directly-managed stores in eight
different blocks for all of Japan. 13 participants who were able tosurvive the intense competition in the qualifying rounds thenadvanced to the final round.
The contest was judged based on safety, accuracy, andefficiency for the three items of a written examination, work, andcustomer service. The written examination consists of 30
questions relating to knowledge on standard work and major
products to be answered within 50 minutes. There are two typesof skills tests, one in which the front tires for a truck or bus have to
be changed in 25 minutes and one consisting of customer service
including a tire inspection to be completed in 15 minutes. The
participants competed based on the knowledge, skills, andservices that had been developed through day-to-day work.
This contest also served as an opportunity for announcements
aimed at rolling out these efforts throughout the entire
Yokohama Rubber Group, and Yokohama Club Network contract
owner stores in the network of retail stores that mainly consistingof Yokohama Tire participated as judges. In addition to safe andsecure work that had been a theme of the first two contests,
efficiency was added as an important judgment point by setting
a time limit for skills this time to see how fast participants could
work while doing other tasks. In the customer service

17

examination, we focused on how participants properly
communicated with customers on the details of the checkthrough means such as putting a scar on a tire brought in by acustomer and politely telling the customer how the tire could nolonger be used or purposely setting a trap that could lead to a tire
falling off by loosening a nut or space tire to check whether athorough safety check is conducted as a professional.
As a result of rigorous screening by the judges, the top threeparticipants were decided on as winners. The winners will serve
as instructors for service training, etc. in the regional area they are
responsible for.
These efforts are used to communicate advanced skills to all of
Yokohama Rubber’s commercial tire service personnel toencourage safe, accurate, and efficient work. We would like toexpand participation to contract owner stores in the future.

Contest participantsWe have establisheda quality assurance systemthrough all product processes[Results of initiatives]
Number of newly certified tire service engineers
Domestic:

6 employees, overseas: 28 employees

Number of tire complaint judgment delegates
Domestic:

27 employees, overseas: 1 employee(Number of product safety employeeswith qualifications FY2017, consolidated)

VOICE

Winner of the contest● ● ● ● ● ● ● ● ● ●TOPIC● ● ● ● ● ● ● ● ● ●Corporate Governance

Learning about Sustainable
Development Goals (SDGs)(Workshops for business partners)

Takafumi Omoda
Yokohama Tire Network Service Chugoku
Tire Center Kure Branch (left)

The Earth
PeopleCommunity

Normally, I am mostly involved in removing and refitting
tires for passenger vehicles and tires for trucks and buses.
In preparation for participation in the contest, I basicallyused the standard work manual for replacing tires for large
trucks as a reference point for constant repeated practicefor book study and thinking about the response when acustomer comes to the branch, the work procedure, andhow to allocate time while receiving instructions from myseniors in-house. Although I felt quite nervous, I
approached the contest with the intent of adhering to thebasics. I think I was able to come in first place thanks to thisapproach.
When seeing the certificate and plaque displayed in ourbranch since I won the contest, customers now tell me thatthey feel reassured with letting us do their tire replacement
work, and I think that customers feel even more reassured
towards our work than up until now.
Although I had not been able to see how people did thiswork in other regions up until now, by looking at the DVD
that was recorded during the contest, I have been able tolearn about unique work tool innovations or efficientapproaches used by some branches.
Our branch will try to innovate while incorporating thegood points from other branches as we encourage eachother through friendly competition.

Products

Osamu Mikami
Receiving award certificate from Member of the Board andManaging Officer, President of Tire Business and Head of Japan
Replacement Tire Sales & Marketing Division (at the time)

We purchase wide variety of raw materials to makevarious kind of products and materials that are used in
our plants. These materials are provided by various
business partners. We have seven plants throughout
Japan, and each of these plants has developed incooperation with companies engaged in business in therespective region.
We hold workshops together with business partners
aiming to sustainable procurement of raw materials andother materials to ensure stable production. In theseworkshops, we learned about compliance and harmony
with nature (biodiversity) in fiscal 2016 and SDGs,
resource recycling, and health and safety in fiscal 2017. In
addition to getting better understanding CSR, we believethat we can minimize management risks through supply
chain and create win-win relationships that are mutually
beneficial. At the workshop, we ask some requirements toour suppliers related to CSR and cultivate a common
understanding regarding CSR.
364 people from 330 companies have participated to
the workshop in fiscal 2017, and we heard from our
suppliers that they thought they have enriched theirunderstanding of CSR by hearing topics and informationthat they had seldom heard, and they have brought backthem to their companies.

Workshop being held

18

The Earth

Leave a sound environment tofuture generations:
Yokohama Forever Forest activities

The 1st Tree Planting Festival, held at the Hiratsuka Factory in November 2007

Tree planting at Yokohama Tire Manufacturing (Thailand) Co., Ltd. (YTMT)

Yokohama Forever Forest – Moving on to the next step
▶ What is the Yokohama Forever Forest project?

▶ Future goals

The Yokohama Forever Forest was initiated as a project to plant
500,000 saplings which selected by the theory of potential naturalvegetation in our Yokohama Rubber Group factories and sales
locations around the world by 2017, the year that marked the 100th
anniversary of the founding of Yokohama Rubber. This project
intended to achieve as follows: Developing participants’ environmental
awareness; Disaster prevention, and forming environmental
conservation forests; Helping decelerate global warming; Conservationof biodiversity; and Communicating with regional communities. The
project was about more than just planting trees; we undertook thisproject as “Regeneration of indigenous forest to help protect lives,” forthe global environment and for local communities.
A key aspect of the Yokohama Forever Forest project is that it
involves the participation of all Yokohama Rubber Group employees.
All of the work – such as collecting acorns, planting them in pots,
applying fertilizer to and watering the saplings in the pots, building
the mounds of earth in which the trees will be planted, to the actual
tree-planting and the subsequent maintenance work, etc. – isundertaken through the sweat and toil of Group employees
themselves, working together to bring the project to fruition.

The Yokohama Forever Forest project is also helping to safeguard
the genetic diversity of local tree species and to maintain andrestore local ecosystems. By providing trees for a particular locality,
once the trees have grown they will provide a habitat for insects,
birds, etc. If these habitats can then be linked together, so thatcreatures can move easily between them, then this can help toenrich the ecosystem of the entire region.
In addition, building on the experience gained in the creation of
the “Heisei Forest” at Otsuchi-cho in Iwate Prefecture, the Yokohama
Forever Forest project has also contributed towards the creation offorested embankments (Green Tide Embankment) that can help toprotect human life in the event of a natural disaster, and towards
disaster prevention and disaster response awareness-raising.
By making effective use of the knowledge that has been
accumulated through the implementation of the Yokohama ForeverForest project, we intend to continue with the implementation ofrelated measures, focusing on the donation of tree saplings and theprovision of tree-planting know-how, with the aim of contributing
towards the conservation of biodiversity in local communities.
Through this continued implementation, we intend to realize thegoal of having a grand total of 1.3 million trees planted by 2030
(including both the trees that have been planted and donated so far
and future tree plantings and saplings donations).

▶ Goal achievement status

The Yokohama Forever Forest project was launched on November
11, 2007 with the first tree-planting at the Hiratsuka Factory. Since
then, tree-planting has been carried out at 14 Yokohama RubberGroup business locations in Japan and at 20 Group businesslocations in 8 countries overseas. The goal of planting 500,000
trees was reached in September 2017. After achieving this target,
we have continued to carry out tree-planting, and as of December
31, 2017 the total number of trees planted had reached 525,662.
Besides planting trees in the grounds of factories and other
Yokohama Rubber group facilities, we have also donated saplings
to local municipalities, schools, other business enterprises, etc. freeof charge, and provided guidance on tree-planting. As of
December 31, 2017, the total number of trees donated in this way,
in Japan and overseas, came to 326,673.

19

Ceremony held to mark the donation of saplings to the Shinwa Gakuen InstituteWe provide opportunities
to come into contact with natureand to learn from nature[Results of initiatives]
The results of the Yokohama
Forever Forest project:
No. of trees planted + No. of saplings donated852,335 saplings planted and donated(As of December 31, 2017, consolidated)

Nurturing people
The people
developed throughthese programs
contribute to the
local community

Providing programs
that integrate businessand education

Yokohama “Kyoikuno mori
(Education Forest)”

Developing
relationship withthe local community

Cultivating
flourishing forests

Employees and former
employees contribute to
the local community

Tree-planting activities
and donation of seedlings
Forest cultivation andprotection throughcommunity activities▶ The aims of the “Kyoikuno mori (Education Forest)” project▶ Goals, and anticipated implementation items

We provide content aimed at kindergarten and nursery school
children, elementary school and junior high school students, seniorhigh school students, and teachers.
●Road safety etiquette classes

Cultivating local communities’ next
generation throughthe “Education Forest” project
Implementing the “Acorn Handicrafts andTree Seedling Cultivation” visiting class
In April 2018, Yokohama Rubber’s Shinshiro Plant organized
an “Acorn Handicrafts and Tree Seedling Cultivation”
visiting class for 1st grade and 2nd grade students at theShinshiro Municipal Yana Elementary School. Shinshiro
Plant employees acted as instructors for the class. In theacorn handicrafts part of the class, the instructors showed
the children how to make floral wreaths for Children’s Day,
while in the tree seedling cultivation part of the class they
showed them how to plant tree cuttings in pots.
The School Principal commented that “Children in theyounger grades are full of curiosity and eager to learn. I feelthat having people from outside the school come in toteach them is a very good thing, as it is very stimulating forthe children. I hope that we will be able to host more
visiting classes like this in the future.”
This was the fifth time that the “Acorn Handicrafts andTree Seedling Cultivation” visiting class had been held at
Yana Elementary School. In the future, Yokohama Rubber
will continue to actively implement activities that can help
to build a friendly relationship of trust with local
communities, focusing on the goals of “Cultivating
flourishing forests,” “Cultivating people,” and “Cultivating
links with the local community.”

PeopleThe programs
that we are
currently
providing:● ● ● ● ● ● ● ● ● ●The Earth

To further develop the “Developing participants’ environmental
awareness” and “Communicating with regional communities”
aspects of the Yokohama Forever Forest project, Yokohama Rubber
has decided to implement a new “Kyoikuno mori (Education Forest)”
project. This project will involve utilizing various different forms ofeducational content provision, including visiting lectures, to provide
children at local schools with the techniques and knowhow that wehave accumulated; our goal is to provide the children with a “way in”
to adventures in new worlds of knowledge, and with an opportunity
to acquire wisdom that will help them to live fulfilling lives.

TOPIC

Products

The “Education Forest” concept● ● ● ● ● ● ● ● ● ●Corporate Governance

Cultivating people
through forest
creation●Rubber’s functions●Acorn handicrafts and tree seedling cultivation●“Let’s plant trees!” activity▶ Future objectives

Acornhandicrafts
class inprogress

Community

The “Education Forest” project provides easy-to-understandeducational programs that use Yokohama Rubber’s products andservices, and the tasks that Yokohama Rubber has to implement inorder to provide these products and services, as the basis for theteaching materials. The aim is to get children looking at things froma scientific perspective, to make them more observant and to
awaken their interests. We also hope that the project will help toenrich students’ lives, and that the communication between
Yokohama Rubber employees and local communities can plant theseeds for the development of new technologies and new
knowledge in the future.

The treeseedlings thatthe children
planted20

The Earth

Leave a sound environment tofuture generations:
Building a sustainable supply chain

Measures implemented by the Yokohama Rubber Co., Ltd.

SNR-i’s 5 objectives:• Supporting the improvement of
natural rubber plantations’ productivity• Enhancing natural rubber quality• Supporting forest sustainability• Demonstrating appropriate water management• Demonstrating the highest respect forhuman and labour rights
Suppliers Day

21

Yokohama Rubber supports the Sustainable
Natural Rubber Initiative (SNR-i)

Implementation of supplier meetings fornatural rubber suppliers

Yokohama Rubber supports the goals of, and participates in theactivities of, the Sustainable Natural Rubber Initiative (SNR-i)
launched by the International Rubber Study Group (IRSG), aninter-governmental organization composed of rubber producing
and consuming stakeholders.
The World Business Council for Sustainable Development(WBCSD) has also begun discussion and examination of the issue ofsustainable natural rubber through its Tire Industry Project (TIP).
Yokohama Rubber will be fulfilling its responsibilities as a memberof the WBSCD’s TIP.
With both the global population and the number of motor
vehicles per head of population continuing to increase, demand fortires is expected to grow continuously into the future. Since it cantherefore be assumed that demand for natural rubber will also
increase, with recognition for its responsibility to society as amanufacturer of tires and other rubber products. Yokohama
Rubber is working actively to promote these projects.
The goal of promoting CSR activities throughout the value chain
forms an important part of the Yokohama Rubber Group’s CSR
Materiality. Starting from 2014, we have been surveying
conservation of biodiversity and human rights protection statusetc. in natural rubber farm in Thailand and Indonesia. In addition,
the Group’s natural rubber processing subsidiary in Thailand has
been encouraging farmers to adopt the agroforestry practices,which cultivate 10 or more different species – including bamboo,
fruit trees, etc. – together with natural rubber trees. In thefollowing sections, we present some examples of the CSR
activities that Yokohama Rubber has been implementing throughthe value chain.

In April 2018, the Yokohama Rubber Group held its 2nd Suppliers
Day meeting for natural rubber suppliers. A total of 42
representatives of 25 companies in 5 countries attended themeeting, at which Yokohama Rubber requested the suppliers’
assistance in regard to the implementation of measures aimed atmaking natural rubber a sustainable resource, in line with our CSR
policy; the Suppliers Day event helped to lead to strong mutual
understanding with suppliers.
Natural rubber is produced mainly in Southeast Asian countries,
including Thailand, Indonesia, Vietnam, etc. Most natural rubber is
not produced on large-scale plantations, but rather on large
numbers of small-scale farms (smallholders).
With the aim of conservation of biodiversity and minimizing theimpact of climate change, Yokohama Rubber has been working
together with suppliers to ensure traceability and to maintaintransparency in the supply chain.
During the Suppliers Day meeting, Yokohama Rubber gave apresentation on the agroforestry project that we are implementing
in the Surat Thani district of Thailand. Using a video message,
Professor Sara Bumrungsri of the Prince of Songkla University, who
has been providing Yokohama Rubber with guidance to support
the diffusion of agroforestry, explained the agroforestry measuresthat we have been implementing, and discussed recent findings
from his research.
With the aim of ensuring sustainable production of natural
rubber that is in harmony with the natural environment, we willcontinue to implement measures that build a win-win relationshipwith farmers that helps farmers to maintain their financial
autonomy.

We are working,through our business operations,
to make natural rubber
a sustainable resource[Results of initiatives]
Number of suppliers
participating in Suppliers Day

42 participants from 25 companies(in 2018)

Measures implemented at our natural rubber processing plant (YTRC)

Drawing
off forre-useFactory

Purification
pond⑥

Buffer pond①⑤

When the waterlevel rises

Pond

te r
wa
he s
n t l r is ee
W h l e ve③④
Purification throughmicro-organism
activation

denotes the direction of water flow

Office building

YTRC’s water-recycling system

Making the buffer pond open to the public so that local residents can use it

Products

When the water level rises, water is directed
into the buffer ponds②

Corporate Governance

Water is gradually purified as
it cycles through purification
ponds ① to ⑥

Sedimentation
Sedimentation tankof impurities

YTRC’s water cycle measuresin the sedimentation tank and being purified by microorganisms, italso improves the water quality and reduces energy consumption.
For domestic water other than drinking water, the plant uses
river water that has undergone chemical treatment, filtering, andsterilization treatment. The roof of the water storage tank used tostore the processed water has been modified to collect rainwater;
by using rainwater, the amount of river water that is needed canbe reduced. Domestic wastewater passes through the septic tanks
and purification ponds before being reused as washing water inthe plant.
The buffer pond has the same species of fish living in it as the
nearby Tapi River. It would be fair to say that the retarding basinprovides an alternative habitat for the Tapi River organisms, andthus contributes to safeguarding the biodiversity of the Tapi River.
YTRC employees catch fish from the buffer pond on a regular basis
to research fish species and their numbers, thereby verifying thatthe buffer pond is maintaining its own biodiversity.
YTRC allows local residents free access to the buffer pond, giving
them the opportunity to catch fish there. In this way, in 2016 around
12 tons of fish were provided for local residents. This measure has
also enabled YTRC to make local people aware of the fact that thebuffer pond is contributing to biodiversity by maintaining water
quality and a water environment that allows the same species of fishthat live in the Tapi River to thrive there. For YTRC to be able tocontinue its production activities in this region, it is vitally importantto have the understanding and acceptance of local residents. In
addition to the activities outlined above, the staff members of YTRC’s
environmental safety department also hold regular meetings withlocal residents. By listening to local people’s views, YTRC is able toensure that these views are reflected in YTRC’s CSR measures; themeetings also provide an opportunity to inform local residents
about YTRC’s activities, and thereby strengthen the relationship oftrust that exists between YTRC and the local community.

The Earth
PeopleCommunity

Y. T. Rubber Co., Ltd. (YTRC) is Yokohama Rubber’s Thai rubber
manufacturing subsidiary. When the YTRC plant first began operation,
we signed an agreement with the local community undertaking not
to allow any of the water used in the plant to be discharged outside
the plant; we have been using a water cycle system that enables water
to be repeatedly reused. YTRC uses two types of rubber raw material
to manufacture Standard Thai Rubber (STR); water is used mainly inthe process of washing these raw materials.
YTRC has a sedimentation tank and six purification ponds inside
the factory premises; water cycles through these and is reused.
Water that has been used in the manufacturing process is firsttransported to the sedimentation tank, where non-soluble
substances are deposited. The water then cycles through the six
purification ponds, where microorganisms are used to purify thewater. One of these ponds is fitted with equipment for stirring thewater for a set period of time so as to mix air in with the water,which accelerates the process of purification by microorganisms.
The purified water is then used again in the manufacturing process.
The water in the purification ponds is sampled on a regular basis
to analyze the water quality, which facilitates proper management.
When the water level in the purification ponds rises because ofheavy rains, the ponds located adjacent to the office building andthe buffer pond function as overflow reservoirs, preventing thewashing water from overflowing outside.
In order to allow this water cycle purification system using
sedimentation and microorganisms to operate at full effectiveness,with regard to the washing water used in the plant, valves can beturned off whenever any of the production process equipment isshut down, and the amount of water drawn off from the ponds is
automatically reduced, so that the overall amount of water being
used can be properly controlled. This method enables the amount ofwater needed in the water cycle to be reduced by around 30%;
furthermore, by increasing the amount of time that the water spends

22

The Earth

Leave a sound environment tofuture generations:
Building a sustainable supply chain

Measures implemented at natural rubber farms

A farm that practices agroforestry

Dr. Sara Bumrungsri giving a seminar

Support for natural rubber farms (YTRC)
In order to ensure sustainable procurement of natural rubber,which is an important raw material for the manufacturing of tires
and other rubber products, Y. T. Rubber Co., Ltd. (YTRC) is providing
support to encourage the widespread adoption of the agroforestry
method. Agroforestry involves the inter-cropping of a variety ofdifferent crops and tree species on the same farm. The agroforestry
approach offers many benefits; for example, the farmer can enjoy astable income from the harvesting of multiple different crops,
including natural rubber, fruit, lumber, etc., and this approach also
helps to improve biodiversity within the farm.
From the time when a rubber tree sapling is planted, it takes
around 5–8 years of growth before latex can be harvested from thetree. With agroforestry, the farmer will have other sources ofincome from other crops during this period. A further point is thatthe price of rubber tends to fluctuate dramatically depending onmarket conditions; even after the rubber trees on a farm havematured enough for the farmer to be able to extract rubber fromthem, having a wide variety of other crops growing on the farm canhelp to stabilize the rubber farmer’s income.
Rubber trees experience a period called “wintering” every year,
when the leaves fall off all of the rubber trees at the same time
before new leaves start to grow. Outside this period, the leaves
tend not to fall off, so once the leaves that fell off during thewintering period have been decomposed by insects andmicroorganisms, etc., there is nothing left to cover the soil, which
as a result tends to become very dry. If a variety of different plants
are inter-planted together, the soil will always have fallen leaves
covering it, which will protect the soil from becoming too dry. The
decomposition of the fallen leaves also provides free fertilizer forthe rubber trees, contributing to a reduction in costs for the farmer.
Rubber trees are affected by a disease called white root disease(WRD), the risk from which is particularly high in Southeast Asia.
Once a rubber tree becomes infected with WRD, the disease can23

spread to other nearby trees very rapidly, and when WRD has beenin the soil, that area of land cannot be used to cultivate rubber
trees for at least five years. On agroforestry farms, because a wider
variety of different plant species are being grown, the range of
microorganisms in the soil is much more complex, and it is believedthat this makes it more difficult for WRD to gain a foothold.
With assistance from Dr. Sara of the Prince of Songkla University,
a noted expert in the field of agroforestry, YTRC has organizedagroforestry seminars for natural rubber farmers in and around theSurat Thani district, acting as liaison between Dr. Sara and thefarmers, and providing venues for the seminars. Dr. Sara’s research
has shown that farms that practice agroforestry have higher yieldand higher income than conventional natural rubber farms.
However, because the number of case studies is still relatively
small, YTRC has been striving to get more farmers to adopt theagroforestry practices. When YTRC first launched this project in2016, there were 10 participating farms, with a total area ofapproximately 12 hectares; by 2017, this had increased to 27 farms,
with a combined total of around 40 hectares. It is anticipated that,by 2020, farms with a combined land area of around 180 hectares
will be practicing agroforestry.
In 2017, the direct support provided to farmers by YTRC included
the provision of approximately 4,000 saplings and around 10 tonsof compost. The saplings were cultivated in nursery located within
the YTRC factory grounds using seeds collected by YTRC
employees. The compost was made using sediments that are aby-product of the natural rubber manufacturing process, together
with grass cuttings from the factory grounds and food waste fromthe factory cafeteria, etc.

We provide support to farmers
to make natural rubber
a sustainable resource[Results of initiatives]
Agroforestry initiative

27 farms (covering a total area ofapproximately 40 hectares)(As of December 31, 2017)

VOICE

An agroforestry farmer● ● ● ● ● ● ● ● ● ●TOPIC● ● ● ● ● ● ● ● ● ●Corporate GovernanceWorking towards sustainable
natural rubber procurement
Supply chain survey in Indonesia

The Earth
PeopleCommunity

It is now eight years since I first started using theagroforestry approach in a corner of my natural rubber
farm. When I first heard about agroforestry, my immediate
reaction was “That sounds like a really great agricultural
technique!”
After implementing agroforestry for a few years, I
stopped using chemical fertilizers altogether. The cropsthat I have planted on the farm include fruit trees, plantsthat are used to make spices, and trees the wood fromwhich can be used to make furniture, etc. Not only has
adopting agroforestry helped to give me a more stable
income, the fact that I am doing something which isbeneficial for everyone makes me feel very proud.
Over the past few years, rapid development in the Surat
Thani district has led to a decline in the number of wild
animals. However, since I started implementing
agroforestry, there has been a pronounced increase in thenumber of butterflies and other insects, wild birds, etc. on
the farm. In addition, although it hardly rains at all in Surat
Thani during the dry season, the fallen leaves from theadditional tree species help to retain moisture, so the soil
doesn’t dry out.
I am very grateful to YTRC for providing the seedlings.
There is a lot that I don’t know about agricultural
techniques and market conditions in relation to crops otherthan natural rubber, so it would be great if I could accessthis kind of information. In the future I plan to start growing
an even wider variety of crops, including coffee, vegetables,
etc., and I hope to become an agroforestry expert so that I
can transform my farm into a learning center.

Products

Mr. Prajub Nuphet

In March 2018, we engaged in communication withsmall-scale natural rubber farmers (smallholders) on theisland of Sumatra in Indonesia, in collaboration withIndonesian company PT. Kirana Magatara, a leading
supplier of natural rubber. The latex from natural rubber
trees is collected and the rubber component is extracted
and processed in block form, which is used in the
production of tires and other rubber products. Around 80%
of natural rubber production derives from smallholders
with a cultivable land area of less than 2 hectares. As an
agricultural crop, the natural rubber harvest varies
depending on the season and on weather conditions. The
price of natural rubber also tends to fluctuate dramaticallydepending on international market conditions. The natural
rubber supply chain is very complex, with 2–6 (or evenmore) intermediaries between the producer and the firms
responsible for rubber processing and shipment inIndonesia. PT. Kirana Magatara is working to strengthenrubber farmers’ economic autonomy by providing themwith knowhow that they can use to boost rubber yields andimprove rubber quality. These efforts are also helping toconserve biodiversity and minimize the negative impact ofclimate change. By strengthening ties with stakeholders,these measures support sustainable value creation. As auser of natural rubber, Yokohama Rubber has beenlearning about PT. Kirana Magatara’s initiatives, and has
been listening directly to the views of small-scale rubber
farmers, with the aim of contributing to activities that canmake natural rubber a sustainable resource.

Natural rubber
being harvested

24

The Earth

25

Leave a sound environment tofuture generations:
Initiatives aimed at saving energy andpromoting the use of natural energy sources

Green Curtain initiative at the Onomichi Plant

Cogeneration system at YTMTEnergy-saving measures are being implemented
at all Yokohama Rubber tire production plants

Promoting the adoption of cogeneration systems

In recent years, with the adoption of the Sustainable Development Goals(SDGs) by the United Nations and the adoption of the Paris Agreement at
the 2015 United Nations Climate Change Conference (COP21), there has
been growing demand from society for measures aimed at realizing
sustainability. At the same time, investors and other stakeholders
increasingly expect companies’ business strategies to be linked to their
CSR strategies. In line with these trends, the Yokohama Rubber Group
has also been implementing measures to foster energy saving and theuse of renewable energy. In regard to energy conservation, it isimportant to make the necessary preparations for implementing
practical measures in line with the company’s medium-term andlong-term objectives, while striving to strike the right balance between
greenhouse gas (GHG) reduction and maintaining profitability. The tire
manufacturing process consumes large amounts of energy. The Facilities
Administration Department provides support for energy-saving
activities in a variety of areas, including the adoption of energy-efficientmachinery (and upgrading existing machinery to make it moreenergy-efficient), reducing energy losses, etc. Tire manufacturing
equipment and arrangements are constantly changing; in order to beable to monitor actual energy consumption during production moreaccurately, the Department is developing management systems thatallow detailed, wide-ranging measurement, and will be reflecting theresults of this measurement in its operations. Other important
responsibilities of the Facilities Administration Department include
formulating plans for realizing efficient operation of the electric power
and power distribution equipment, boilers, water supply and waste
water discharge equipment etc. in our factories, and drawing up
measures for reducing GHG emissions deriving from air-conditioning
coolant, etc. Over the last few years, we have gradually been expanding
the scope of implementation of measures such as the installation oflarge-scale cogeneration (Combined Heat & Power) systems andswitching over to different fuels for boiler operation to include not only
plants in Japan but also our overseas factories.
Implementing energy-saving initiatives overseas
can be very challenging, but the benefits in termsof GHG emission reduction can be substantial, andwe will continue to actively implement thesemeasures. There is still considerable room for
implementing further renewable energy measures,and we will continue to monitor new technology
developments carefully with this aim in mind.

Yokohama Tire Manufacturing (Thailand) Co., Ltd. (YTMT), ourmanufacturing facility in Thailand, began operation of acogeneration system that uses gas turbines and a waste heat boiler
to realize efficient electricity generation in May 2017; YTMT has
become the first overseas production location in the Yokohama
Rubber Group to install a cogeneration system.
By providing low-cost electricity and steam, cogeneration
systems help factories to both save energy and reduce costs. The
cogeneration system at YTMT is expected to reduce annual CO2
emissions by 9,300 tons (14%) compared to fiscal 2016, while also
reducing YTMT’s utilities expenses by 3–6%.
In Thailand, where the electric power supply is somewhat
unreliable, the cogeneration system can also function as an
emergency power supply in the event of a power cut.
As of 2017, cogeneration systems were in operation at three of
the Yokohama Rubber Group’s domestic production facilities inJapan. By maintaining 24-hour operation, these cogeneration
systems provide 73% of the electric power consumed by the plants,
and they also provide almost all the steam needed by the plants;
they also contribute towards reducing CO2 emissions, and towards
reducing the amount of electric power needed from the powercompanies, including a reduction in peak power demand.

Kenji Ishii, Manager, Electricity & Measurement Section,
Facilities Administration Dept.

Cogeneration system at the Mie Plant

We implement activities to reduce
our environmental footprint
on an ongoing, Group-wide basis[Results of initiatives]
Greenhouse gas emissions

363,000 t-CO
Scope 2354,000 t-CO
Scope 3 23,237,000 t-CO
Scope 1

2

2

2

(FY2017, consolidated)● ● ● ● ● ● ● ● ● ●TOPIC● ● ● ● ● ● ● ● ● ●Corporate Governance

Switching over to gas boilers

Solar panels installed on the roof of a building

Adoption of photovoltaic electric power
generation in India

Products
The Earth

The new gas boilers

People[YRSC’s targets]
Reduce CO2 emissions per unit of output by at least 45%
in FY2018 compared to the base year (FY2017)

Heat loss with steam and heat-transfer oil compared
Heat-transfer
oil boiler

Steam boiler
Steam is not recycled, andhas to be generated again byheating low-temperature water

Vulcanization
process

Changing
the heattransfer
mediumCommunity

In India, where atmospheric pollution is becoming an increasingly
serious problem, in order to realize an improvement in theenvironmental situation while still maintaining economic growth,
there is a clear need to shift away from the use of fossil fuels such ascoal and petroleum towards natural energy sources that will help
to reduce CO2 emissions. The policies adopted by the Indian
government seek to promote the rapid adoption of photovoltaic(PV) electric power generation as part of this shift.
In 2014, Haryana State, where Yokohama India Pvt. Ltd. (YIN) is
located, launched a PV development plan that aims to boost PV
electricity generation capacity in the State to 4,030 MW by 2022; aspart of this plan, YIN was asked to install PV capacity equivalent toat least 8% of its contracted electric power usage (as of 2017).
YIN installed 625 PV panels, with a combined generating
capacity equivalent to 9% of the company’s contracted electric
power usage. As a result, over the period August 2017 – March 2018
YIN succeeded in reducing CO2 emissions by around 112 tons (thiscalculation assumes that reducing electric power consumption by
1 kWh is equivalent to a reduction in CO2 emissions of 0.8 kg). On
sunny days, the PV panels have a combined generating capacity of
125 kW per day, although the average value is around 80 kW perday. The electric power generated using the PV panels is used forlighting, electrical sockets etc. within the factory, and thus
contributes towards reducing YIN’s electricity charges.
There are plans to expand the scale of the YIN factory, which inturn will lead to an increase in the amount of PV generating capacitythat YIN is required to install. YIN is planning to increase the capacityof its PV system by March 2022 in order to meet this requirement.
There is a display monitor at the YIN factory’s reception buildingthat shows how much electric power is being generated by the PV
system, thereby helping tostimulate environmental
awareness. Through thisproject, YIN is contributing
towards environmental
improvement in India.

Recognizing the seriousness of the problem of atmosphericpollution, in 2017 the Chinese government introduced newmeasures to regulate emissions of coarse particulatematter from factories. Shandong Province has followed
suit, and although Shandong Yokohama Rubber Industrial
Products Co., Ltd. (YRSC) had already fitted coarse
particulate matter removal devices to its coal boilers infiscal 2016, in March 2017 the municipal government ofWeifang City, where YRSC is situated, issued a notification
requiring that all coal boilers of 10-ton capacity or smaller
located within the City be dismantled; in response, YRSC
decided to replace its coal boilers with gas boilers and also
switch over from steam to oil as the heat transfer medium.
Using oil – which has superior charging efficiency – as theheat transfer medium means that, by having the oil circulate
once it has been heated up, temperature loss can becontrolled, and less gas is needed than when coal is used as
the heat transfer medium. The new gas boilers began
operation in October 2017, with the target noted below.
In the future, YRSC willcontinue to collectinformation regarding
environmental policies andguidelines, and will work
proactively to addressenvironmental issues.

The heat-transfer oil
circulates, and only that
portion which cooled downneeds to be heated up again

Vulcanization
process

Heat loss is substantially reduced ⇒ Fuel consumption is reduced

The display monitor at the factory’s reception building
showing the amount of power generated by the PV system

26

PeopleBuild on each other’s strengths:
Initiatives to foster diversified work styles

Basic Policy on Women’s Participation andAdvancement in the Workplace

VOICE

Women’s Participation andAdvancement Taskforce Leader

Aiming to be a company that welcomes diversified
workstyles, with an employee-friendly working
environment that will encourage employees to staywith the company over the long term

Working towards the adoption of new systems that will
create a more employee-friendly working environment
In line with our goal of creating a more employee-friendly working
environment for all employees, including female employees, in 2016
Yokohama Rubber established the Women’s Participation andAdvancement Taskforce. The Taskforce is currently operating witheight core members, implementing activities in collaboration witheach individual department.
In 2017, the Taskforce administered a questionnaire survey to
Yokohama Rubber employees and held individual interviews with all
female employees, striving to clarify female employees’ needs withrespect to returning to work. The individual interviews with female
employees enabled the Task to learn how female employees
approach their careers, what concerns they have about balancing
their careers with childcare or nursing care responsibilities, how it
feels to be a working mother applying for short-time working systemand other concerns and ideas that female employees have; theseinterviews helped to clarify the need for new systems that will
permit the realization of diversified work styles.
On the basis of the above information, Yokohama Rubber’s basic
policy on women’s participation and advancement in the workplace
has been set as: “Aiming to be a company that welcomes diverse
workstyles, with an employee-friendly working environment thatwill encourage employees to serve long term.” We have been
implementing various measures aimed at fostering the exchange ofviews and enhancing communication so as to contribute to thebuilding of employee-friendly workplaces in which women cancontinue their careers for an extended period, including the holdingof working mothers gathering and study seminars to deepen
understanding of health issues that affect women in particular, etc.
Following a trial implementation period, April 2018 saw the formal
adoption of three new workstyle systems: the Working from Home
System, extension of duration for the Short-Time Working System
the Reduced Working Hours Extension System, and the Career
Return System.
In the future, Yokohama Rubber will continue its efforts to create
an employee-friendly working environment, by enabling employees
to take annual leave in hourly units, expanding the scope of the
flextime working system, etc.,
so that, within a working
environment that supports
diversity, individual employees
can maximize their potential
and create outstanding results.
The Women’s Participation and Advancement Taskforce has been established
to help create a more employee-friendly working environment

27

Machie Wakabayashi
Taskforce Leader, Women’s Participation andAdvancement Taskforce, Corporate Planning Division
By holding interviews with female employees and withmanagers who supervise female employees, the Women’sParticipation and Advancement Taskforce has been able toaccess a wide range of approaches and ideas, and to hear
employees’ real opinions. Although interviewing directly
every individual female employee took a great deal of timeand effort, it has helped to strengthen our understanding of
the wide range of different ways that women approach theircareer, and the needs to support different workstyles; I
believe that the information we have collected will be very
useful when formulating new policy measures in the future.
Based on the results obtained from these activities,
starting from fiscal 2018, Yokohama Rubber has gradually
begun to introduce new systems and frameworks. Placing aparticular focus on the areas of childcare, nursing care, andwomen’s career continuity, for which needs wereparticularly high, Yokohama Rubber is adopting a proactive
approach towards the formulation of guidelines for eachstage from applying for childcare leave to returning towork, towards the implementation of surveys andinterviews – targeting all employees – regarding nursing
care responsibilities, and towards the holding of various
types of seminars for female employees and managers.
Systems for supporting an employee-friendly
working environment● Working from home
● Extension of reduced working hours for employeeswith childcare responsibilities● Career return support● Enabling employees to take paid leavein hourly increments

We nurture values accommodating
diversity in the workplace and in
the community at large[Results of initiatives]
Percentage of newly-recruitedemployees on the managementcareer track who are female

32.5%(Employees recruited in April 2017, non-consolidated)● ● ● ● ● ● ● ● ● ●TOPIC● ● ● ● ● ● ● ● ● ●VOICE

A user of the Working
from Home System
Corporate Governance

Making effective use of IT
to realize more efficient work styles

Products

Ryota Miyatsu
Business Innovation Task Force,
IT & Management System Planning Dept.
In October 2017, I started working from home once or
twice a month on a trial basis. The main objective was to
identify any IT-related issues that might affect
employees working from home on a regular basis. The
thing that struck me about working at home was that it
has definite advantages, because not wasting timecommuting helps you to work more effectively, andbecause you can focus more on your work due to not
being interrupted all the time. By making use of
web-conferencing and chat tools, you can stillcommunicate with your supervisor and with colleagues
without any real problems. I made a particular effort toeliminate any potential communication problems byusing different communication tools for different
purposes. One problem is the need to have anenvironment at home where you can concentrate on
your work in the same way that you can in the office. I
found that it is important to make a preparation to thedesk and chair that you use at home so that you cankeep working at your desk for long periods, and to makesure that the family members you are living with
understand that you need to focus on your work. In
addition, in order for this type of work arrangement tobe adopted more widely, I think it is very important tosecure the understanding of other people in theworkplace. As I am assigned to a department that is
striving to make effective use of IT to make work more
efficient, I have been working actively to provide
feedback on the results of this trial project, and I hope tobe able to put forward some proposals for improving the
IT environment to provide a higher level of convenience.

The Earth
PeopleAs part of our efforts to create an employee-friendly workplaceenvironment, Yokohama Rubber is working to further theeffective utilization of information technology (IT). We are
actively promoting the adoption and utilization of tools thatwill allow all employees to realize more efficient working styles.
Starting from fiscal 2017, we have been deploying new businesschat tools that facilitate more effective communication. By
comparison with conventional e-mail-centric communication,these new tools allow employees to contact one another more
rapidly, thereby contributing towards making business
operations more efficient. We have also launched a BYOD
(Bring Your Own Device) initiative whereby employees cancheck company e-mail and schedules on their own personalsmartphones, which can contribute towards boostingproductivity by enabling employees to make more effective
use of small blocks of free time. While these types of tools have
many convenient and useful functions, a lot of employees do
not know how to make full use of them, so we are
implementing regular seminars and training sessions to sharepractical ideas on how to use these tools can be used in
day-to-day business operations.
We have also started to use social media within theenterprise; as home working (telecommuting) becomes morecommon, it will be increasingly difficult to bring employees
together face-to-face in the workplace, so by putting in place
new methods of communication, we are helping to ensure that
operations can continue to proceed smoothly.
In implementing these various initiatives, we are working toensure close coordination between operational departments, theHR department and the labor unions, so as to provide effective
support for the enhancement of employees’ work styles.

Community

IT training in progress28

Build on each other’s strengths:
PeopleCreating workplace environments thatmake working easier for all employees

Providing support for the participation andadvancement of persons with disabilities (YPS)
Yokohama Peer Support Co., Ltd. (YPS) is Yokohama Rubber’s
special subsidiary, which was founded in March 2012 with the aimof creating employment for people with disabilities.
YPS has recruited more people with disabilities every year since
its establishment, while at the same time expanding the scope ofwork available to them. Currently, YPS has 51 employees in total, of
which 28 have intellectual disabilities. The work that YPS
employees with disabilities perform includes cleaning work at the
Hiratsuka Factory – cleaning a total of over 150 toilets, meetingrooms, rest areas, etc. – as well as greening work in the Factory
grounds, sorting and delivering mail and internal mail, andmanaging Factory employees’ work clothes, etc. Work is allocatedin line with individual employees’ specific preferences and needs; aspecial focus has been placed on human talent cultivation, withadjustments having been made to the system so that, as the scopeof work handled by individual employees expands, they are
eventually able to provide guidance to new employees, etc.,
providing a sense of achievement. The non-disabled YPS personnel
who undertake the provision of guidance are mainly former
Yokohama Rubber employees; by providing considerate, helpful
guidance on a daily basis, they strive to create a working
environment in which the disabled employees can carry out theirwork with peace of mind. Besides daily discussion meetings,
individual interviews are held every six months to find out about
employees’ career hopes, expectations, worries, etc.; in this way,
YPS endeavors to increase the employee retention rate.
In the future, YPS will continue its operation as a professionalteam that emphasizes
safety and fundamental
needs, while also aiming tocreate a workplaceenvironment in which
disabled employees candevelop their career overthe long term.
As YPS marks the sixth anniversary of its founding, YPS
employees aim to continue the company’s growth as a teamthat undertakes its work in a highly professional manner

29

Employment of disabled persons overseas (CHZY)
Starting from 2006, Hangzhou Yokohama Tire Co., Ltd. (CHZY) –which is located in the Hangzhou Economic and Technological
Development Area (HEDA), Hangzhou City, Zhejiang Province,
China – has been responding to the Chinese government’s
initiatives by adopting a more proactive approach towards theemployment of disabled people. CHZY currently has 22 disabled
persons working at the company.
The work that each disabled employee performs is arranged inaccordance with the individual employee’s capabilities, throughliaison with the human resources department and general affairs
department, and includes work such as data collation, preparation ofprocess-related signboards for use within the factory, etc. Within theworkplace, disabled employees receive training in technical skills aswell as safety and environmental awareness training. The company
also organizes outdoor activities and parties on a regular basis, toprovide opportunities for the disabled employees to develop friendly
ties with other CHZY employees. These efforts by CHZY have been
well received; in fiscal 2017, CHZY was honored as a “Disabled Persons
Model Employer” by Hangzhou Municipal Government. In the future,
CHZY plans to continue expanding the range of roles and work
content available to disabled employees on the basis of careful
evaluation of individual suitability, with the aim of ensuring that all
human resources are able to maximize their potential. The goal is that,by arranging work that suits the talents of each individual, employees’
self-confidence and self-esteem can be enhanced, making CHZY acompany in which all employees are able to maximize their potential.

A “5S”* notice-board created by disabled employees working together,with the aim of helping to create a cheerful, happy workplace*5S: A workplace organization methodology based around the “5Ss”:
Sort, Set in order, Shine, Standardize and Sustain

We build workplaces and a society
in which a wide range of humantalent can maximize their potential
with peace of mind

● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●[Results of initiatives]
Disabled persons employment rate

2.18%

(Combined total for Yokohoma Rubber Co., Ltd.,
Yokohama Tire Japan Co., Ltd.,
Yokohama Rubber MB Japan Co., Ltd.,and Yokohama Peer Support Co., Ltd.
during the period April 2017 – March 2018)

TOPIC● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●Yokohama Rubber is engaged in creating a working
environment that enables employees with motivation andability to participate fully, and in which every individual
employee can maximize their potential.

VOICE

A female manager
working in Thailand

Corporate GovernanceFemale employees to management positions in overseas Group companies
In Yokohama Rubber’s overseas operations, there are alreadysome regions where women’s advancement in the workplace isalready proceeding rapidly, with many female employees
working enthusiastically in managerial positions.

VOICE

A female manager
working in China

Products

Ren Xuanqun: As departmental manager of the
Administration Department, I am responsible for generalaffairs, human resources, public relations (including
liaison with government agencies and local government
authorities), legal affairs, etc. When I was promoted todepartmental manager I was overjoyed; it encouraged
me to work even harder so as to achieve good
performance and live up to the trust that had beenplaced in me. Every day, we recite the safety messages,
and we attach great importance to ensuring employees’safety and their physical and mental health. In the
future, I hope to continue making a positive contribution
to the company by demonstrating effective care for
employees (being kind when appropriate, and stern
when necessary), and by working to enhance my own
management capabilities.
Tong Dan: YIP-HZ manufactures hose and automotive
sealing materials. When I was promoted to manager, I
was pleased that the company thought highly of me, but
at the same time I also felt a certain amount of pressure.
Initially, it was very hard, but over time we have beenable to build a real team spirit by sharing ideas for
improvement. In line with our company’s goal of
becoming the “number one factory in the world forsafety and quality,” I am working to strengthen
employees’ awareness of the importance of quality, andof how improved quality leads to greater peace of mind.

Community

While women only account for around 20% of all
employees at YTMT, in the Human Resources andGeneral Affairs Department the figure is approximately
70%, with 32 female employees. Of the 18 people
working in our office, 15 are women. There is no
gender-based discrimination in the recruitment process;it is just that women tend to be better at datacompilation, which is painstaking work that requires
careful attention to detail, so we have ended up with ahigh percentage of women. In Thailand, employees
usually don’t have to work a lot of overtime, and every
member of the family helps to look after the children, so
whether or not you have children doesn’t really affectyour work. I think that if I have children in the future, I
will probably be motivated to work even harder for thesake of my family. Working in the Human Resources andGeneral Affairs Department, we sometimes have to tellemployees things that they don’t want to hear, but there
is also a more pleasant side, for example when we holdbirthday parties for employees and all get together tocelebrate with them. I enjoy being able to work knowingthat I can have full confidence in my subordinates. WhenI was first promoted to a managerial position I was alittle hesitant about it, but now I found that having that
increased sense of responsibility gives me extra
motivation in my work. In the future, I will continue to do
my utmost as the manager of my department.

PeopleTong Dan, Deputy Plant Manager (left); Ren Xuanqun,
Department Manager, Administration Department (right)
Yokohama Industrial Products - Hangzhou Co., Ltd. (YIP-HZ)

The Earth

Jirinee Huabnarin, Senior Manager,
Human Resources and General Affairs
Yokohama Tire Manufacturing (Thailand) Co., Ltd. (YTMT)30

Community

Earn the confidence of our neighbors:
Contributing to safety at the local level

Training conducted with Hiratsuka School for the Visually Impaired(wheelchair user evacuation)

Traffic safety rule awareness-raising activity using mini-games

Contributing to the building of safe local communities“Safety starts with me” traffic safety awareness-raising

The Hiratsuka Factory has signed a disaster response collaborationagreement with Kanagawa Prefectural Hiratsuka School for the
Visually Impaired, which is located adjacent to the Factory, for the
purpose of providing mutual assistance in the event of natural
disaster; the Hiratsuka Factory and the School hold joint disaster
response training activities.
The first joint disaster response drill was held in 2006; as ofDecember 31, 2017, these joint drills had been held on 16 occasions.
The collaboration between the Hiratsuka Factory and the Hiratsuka
School for the Visually Impaired has taken various different forms,
including the construction of an emergency exit to provide directaccess between the School and the Factory, and the holding of
seminars to train the School’s teachers in the use of fire extinguishers
and automated external defibrillator (AED) equipment, as well asteaching CPR. The Hiratsuka Factory employees participating inthese activities were able to learn the important points to remember
when helping disabled people to evacuate in an emergency
situation, and while taking part in the disaster response drill they
took great care to ensure that they would not be injured.
Every time the joint drill is held, it provides a useful opportunity
for identifying issues that need to be resolved. Given that theholding of these activities enables Yokohama Rubber to meet theneeds of the local community, we intended to continue
implementing disaster response related initiatives in the future.

Yokohama Tire Vietnam Inc. (YTVI) has been carrying out traffic
safety awareness-raising activities since 2016. In February–March
2017, we implemented a safety sticker distribution activity targetingtruck and bus drivers, using the slogan “Let’s get home safely.”
YTVI provided sponsorship for soccer classes that a total of 650
children took part in. After soccer practice, commemorative group
photographs were taken with the children holding various types offlags that had awareness-raising messages on them. YTVI also
distributed photo holders with safety message printed on them forthe children to put the commemorative photos in. Chanting thesafety messages helped to reinforce the memories that thecommemorative photos will embody for the children while also
helping them to realize the importance of traffic safety.
A high percentage of traffic accidents in Vietnam involve young
people, so it is important to create as many opportunities as
possible for young people to develop a correct understanding oftraffic safety rules and learn how to drive safely. With this aim in
mind, YTVI organized a mini-game activity in collaboration with alocal shopping mall that is visited by large numbers of families andyoung people, targeting children and, particularly, teenagers. The
aim was to create an opportunity to learn traffic safety rules in a
fun way. There were also demonstrations by YTVI staff on proper
tire usage, and opportunities for people to have their photo takenwith the Yokohama Tire mascot. A total of around 1,000 adults andchildren participated in this awareness-raising activity.

Earthquake/tsunami evacuation drill planned in collaboration
with Hiratsuka School for the Visually Impaired(approximately 100 participants)
Providing support for earthquake
evacuation training“Injured” student being
carried by stretcher

31

Providing support for earthquake/tsunami evacuation training

Guiding students up the stairs●Primary evacuation drill content
With a drill scenario based on theassumption that an earthquake had
occurred, the drill involved evacuating
wheelchair-bound students and“injured” students from the 3rd Floorof one of the school buildings to the
1st Floor (ground floor) level.
●Secondary evacuation drill content
With a drill scenario based on theassumption that the school buildings
had collapsed, the drill involved
helping the students to evacuatefrom the School to the nearby
Multi-purpose Park.

●Tsunami evacuation drill content
With a drill scenario based on theassumption that a tsunami had
occurred, the drill involved
evacuating wheelchair-boundstudents from the 1st Floor (groundfloor) level of the one of the schoolbuildings to the 3rd Floor.
In fiscal 2016, a new drill activity
was implemented for the first time ona trial basis; this involved guiding
students to evacuate to the Hiratsuka
Factory’s Administration Building on
the assumption that a tsunami had
occurred.

We earn the confidence of neighbors
through robust community
engagement[Results of initiatives]
Traffic manner guidance for local
elementary school implementation rate

100%

(All domestic production sites in Japan(non-consolidated), 2017)● ● ● ● ● ● ● ● ● ●TOPIC● ● ● ● ● ● ● ● ● ●Seminar on proper tire usage, with instruction by YTVI employees

Comments from people who participated in
YTVI’s traffic safety campaign activities

Shopping center event● I learned how important it is to always stop at a red light, andthat children need to be wearing safety helmets too when they
are riding on a motorbike or scooter. (Teenage girl)● I am grateful for having had the opportunity to learn about
the important things to note when changing your tires, which I
hadn’t really known until now. (20 years old male)[List of organizations that have received disbursementsfrom the Yokohama Magokoro Fund]● IKAW-AKO Japan-Philippines Partnership for Environmental
Protection Inc. (Specified Nonprofit Corporation)
Environmental protection activities in the Philippines, including
tree-planting activities and “3Rs” (Reduce, Reuse, Recycle)
awareness-raising activities, etc.
● AFS Intercultural Programs, Japan(Public Interest Incorporated Foundation)
International exchange activities for senior high school students topromote cross-cultural understanding.
● Groundwork Mishima (Specified Nonprofit Corporation)
Implementation of environmental conservation activities andenvironmental education activities aimed at restoring the originalnatural landscape of Mishima, the “Land of Water.”● ChildFund Japan (Specified Nonprofit Corporation)
Sponsorship program to help ensuring that children living inpoverty in countries such as the Philippines can grow up healthy.
● Japan Environmental Action Network (JEAN)(General Incorporated Association)
Activities to raise awareness of the problem of marine debris andenvironmental conservation activities to restore and protect therivers and seas.
● The Hyogo Institute of Assistive Technology(Hyogo Assistech) (Social Welfare Corporation)“Children’s Myoelectric Prosthetic Hand Bank” program, which aims
to help create a “universal well-being society.”● Katariba (Approved Specified Nonprofit Corporation)(Onagawa Kougakukan facility)
Provision of educational facilities for children who were affected by
the Great East Japan Earthquake of 2011, and provision of related
educational support activities.

PeopleCommunity

Activity participant carrying a commemorative photo bearing traffic safety messages

The Earth

Soccer event● For my son, who wants to be a soccer player when he grows
up, this was a great opportunity. The commemorative phototaking will have helped to get him thinking about traffic safety
from a young age, and the activity also provided our family withsome great memories. (Father)

Yokohama Rubber established the YOKOHAMA Magokoro
Fund in May 2016, with the aim of providing support forNPOs, NGOs etc. that are working to address social challenges
including environmental conservation activities and humanrights, etc., as well as contributing to disaster relief funds.
Yokohama Rubber employees who wish to donate to theFund become Members; they make fixed monthly donations
in multiples of 100 yen, which is deducted directly from theirsalary. Through this system, employees who may have feltthat “I would like to start participating in social contribution
activities, but I don’t know where to start,” or “I don’t haveenough free time to participate in volunteering activities”
can easily participate in social contribution activities. As of
April 2018, the YOKOHAMA Magokoro Fund had a total of
1,817 Members, and had provided a combined total of
2,142,000 yen donations for 11 projects organized by 7
different organizations, as well as contributing a combined
total of 2,450,977 yen (including donations made in foreign
currencies, converted into Japanese yen) to 5 disaster relief
funds. In recognition of employees’ willingness to contributeto society, Yokohama Rubber matches the same amount foreach donation made from the Fund, thereby supporting
employees’ social contribution activities.

Products

activity (YTVI)

Corporate Governance

YOKOHAMA
Magokoro Fund32

Earn the confidence of our neighbors:
Community

Contributing to improving
lives in local communities

Some of the women who participated in the program

33

Providing healthcare support for local
communities in collaboration with NPOs (YTPI)

Female employment program
targeting nearby villages (ATG)

Yokohama Tire Philippines, Inc. (YTPI) recognizes the importance of
the Philippines government’s 10-point Socioeconomic Agenda andof Goal 3 of the UN Sustainable Development Goals (SDGs) – Ensure
healthy lives and promote well-being for all at all ages – andimplements activities that provide direct support for local
communities.
In July 2017, volunteers from YTPI accompanied healthcare
professionals acting as doctors’ assistants to provide free medical
examinations and free medicines for local residents in the hilly
Target district. Examinations were provided for 258 patients,
exceeding the original target of 200. The YTPI volunteers worked
together with the medical team; the volunteers were mainly
responsible for patient registration, showing patients where to go,
personnel assignment management, etc. Some Japanese trainees
who have been undergoing training at YTPI also assisted, by
distributing drinks etc.; this activity really helped to strengthen ties
with local residents and their children.
In September 2017, YTPI launched a 60-day food aid program incollaboration with an elementary school in the Sapangbato district.
This activity is conducted every year, in response to an appeal by
the Philippines’ Department of Health, to address the problem of
malnourishment among children, particularly those living inremote areas.
YTPI’s CSR team provided the targeted children with nutrition
kits that included bowls, spoons, forks, and bottled foods andbeverages, as well as multivitamins, etc. By checking the children’s
weight once a week, the team is also able to monitor their growth.
YTPI has been implementing this food aid program on an annual
basis with the aim of helping children to live healthy, happy lives; inthe future, YTPI will continue its efforts to make a positive
contribution to local communities.

The majority of women living in India’s rural areas marry young andthen focus on looking after their families as housewives.
The ATG Tires Tirunelveli Plant (ATG-TN) carried out a survey tofind out what kind of occupational skills women living in nearby
villages would like to acquire. The survey results showed that 90%of the women were interested in learning tailoring, which is a jobthat can be carried out at home while also doing the housework.
ATG-TN launched a 50-session training program to help women in
nearby villages who had not previously had any opportunity toacquire tailoring skills learn how to make clothes. Registration
began in 2016, with 15 women participating initially. On eachtraining day, trainees received practical instruction between 10:00
a.m. and 1:00 p.m., after which they had the option of staying at thetraining center to practice on their own or receive further guidancefrom the instructors.
The program was implemented once again in 2017, with a further
cohort of 15 trainees. The women who have completed theprogram are now able to make a wide range of clothes, fromchildren’s clothes to ladies’ underwear and outdoor clothing, andare able to make clothes to order for their immediate family
members, other relatives, and other villagers, which provides themwith an additional source of income. Animated by a strong desire
to be able to provide their immediate family, other relatives andother villagers with clothes made according to the designs theywant using good-quality materials, while working from home, all of
the participating trainees completed the course. Some of themost-skilled trainees have now become teachers themselves,teaching other people how to make clothes.
Several of the trainees were family members of ATG-TN
employees; by providing a way for more members of the same family
to earn an income, ATG-TN has been able to win the trust of local
villagers. Program participants have expressed an interest in learning
how to make more colorful clothes with more complex designs, and
ATG-TN is evaluating ways to help them realize this goal.

We earn the confidence of neighbors
through robust community
engagement[Results of initiatives]
Community activity and dialog
implementation rate at our production sites

100%(2017, consolidated)

Percentage of business locations paying
salaries that exceed the minimum wage

100%

VOICE

Female employment
program participants● ● ● ● ● ● ● ● ● ●(2017, consolidated)

TOPIC● ● ● ● ● ● ● ● ● ●Corporate GovernanceDonating toilets to an elementary school

Community● If someone wants clothing based on an original design, I
make a sample and discuss it with them. Currently, I am
using a foot-powered sewing machine, so I have to work
carefully. It would be great if, in the future, I was able to use
an electric sewing machine to make the types of clothes
people want.

People● I was really eager to learn tailoring, because it is a jobthat I could do at home. When there was anything I didn’t
understand, the instructors were very helpful and patient.
In the past I always bought ready-to-wear clothes, but they
didn’t always fit properly, and designs weren’t very good,
so I am really happy that I can now make clothes that myfamily and other people in the village will like.

The Earth● I didn’t know anything about tailoring before; I was very
excited by the idea of learning how to make clothes bymyself, and I made sure that I attended every training
session without missing a day. I have purchased a sewing
machine and materials, and am now making clothes forfamily members and friends after discussing with them whatkind of clothes they want. It’s great, because I can do thework during periods of free time between housework tasks.

Products

Women who participated in the program

Around 80% of the children who attend the Map Yang Porn
Elementary School near Yokohama Tire Manufacturing(Thailand) Co., Ltd. (YTMT) have parents who work in the
Amata City Industrial Estate, where YTMT is located. As theIndustrial Estate has developed, the number of children
attending the Elementary School has grown rapidly,
resulting in a shortage of classrooms and toilets. To help
tackle this problem, YTMT joined forces with two otherJapanese-owned companies and began constructing new
toilets adjacent to the school buildings in April 2016; thecompleted toilets were formally donated to the school in
September 2016. Besides men’s toilets and ladies’ toilets,
there is also a restroom for the physically challenged. The
new toilets are used not only by the schoolchildren, butalso by other local people such as to play soccer on theschool grounds on weekends.
When the toilets were being constructed, YTMT donatedthe funds needed to buy construction materials, and YTMT
employees who expressed an interest in helping with the
project painted and decorated the toilet walls. The area
near the toilets has been landscaped using flower-beds
made from tires, and the walls were decorated withpictures and messages painted by YTMT employees.
YTMT is continuing to provide support for Map Yang Porn
Elementary School on an ongoing basis; for example, in 2015
YTMT donated play equipment made from tires to the school.
In addition, YTMT organizes a variety of activities forschoolchildren and other local residents, including traffic
safety classes, etc. When planning these activities, YTMT’s
Thai employees play an active role by considering whatkind of activities would be most appreciated by the local
community.

The donated toilets

Design sample

Play equipment
made from tires

34

Yokohama Rubber Group at a Glance / Financial Indicators(as of December 31, 2017)* Consolidated financial statements prepared based on International Financial Reporting Standards (”IFRS”) from the 142nd fiscal period(transition date of January 1, 2016)(Consolidated)
December 2017 (142nd fiscal period)

December 2016 (141st fiscal period)

24,61025,439135

137

Sales revenue (JPY million)

574,048646,272

Profit before tax (JPY million)

24,07654,891

Profit attributable to owners ofparent (JPY million)

9,362

39,975

Number of employees
Number of applicable subsidiaries

Net Sales (consolidated) and Profit Attributableto Owners of Parent

Total Assets and Equity Ratio (consolidated)

Net Sales (Japanese Standards)
Sales Revenue (IFRS)

Total Assets (Japanese Standards)
Total Assets (IFRS)Sales Revenue(JPY billion)

700
600

Profit Attributable to Owners of Parent (Japanese Standards)
Profit Attributable to Owners of Parent (IFRS)Profit Attributable to Owners of Parent*1(JPY billion)

40.5 629.9
601.6 625.2
596.2
36.3
35

668.1
574

646.3

40

35.2

500
400
18.8

300

Total Assets

1,000

40

900

35

800

30

700

20
15

Equity Ratio*2(JPY billion)

45

25

Equity Ratio (Japanese Standards)
Ratio of Equity Attributable to Owners of Parent (IFRS)

(%)

47.7

45
40
35

600

30

500

25

400

20

300

15

10

100

200

10

5

100

5

0

0

0

200

9.4

2013 2014 2015

2016

2017

(FY)

*1: Profit Attributable to Owners of Parent under IFRSSales Revenue by Sector

2013 2014 2015

(FY)

Others111

billion yen

billion yen(9.8%)(17.2%)

MB

114.1(17.7%)

2017

Sales by Region

63.4

billion yen

2016

93.8

billion yen(14.5%)

Sales byCustomer Location(FY2017)

Tires

459.9

billion yen(71.2%)

Japan

271.6

Asia

Sales Revenue
by Sector(FY2017)0*2: Ratio of Equity Attributable to Owners of Parent under IFRSOthers 8.8 billion yen(1.3%)
ATG

North America

169.9 billion yen(26.3%)

35

50

903 888.9 929 920.8
41.3
41.4
38.6
41.3
734.5 710.7
38.1
653.6
44.1

billion yen(42.0%)

Main Regions Where Yokohama Rubber Is
Developing Its International Operations

EuropeNorth America

13
Number of people: 1,136
Major business sites:

7
Number of people: 2,720
Major business sites:

Japan

41
Number of people: 9,992
Major business sites:

Asia

23
Number of people: 11,285
Major business sites:

Latin America

2
Number of people: 306
Major business sites:

Major Affiliates(By region)Japan

US and Latin America

Yokohama Europe GmbH

EuropeYokohama Tire Japan Co., Ltd.

Yokohama Corporation of North America

Yokohama Industrial Products Europe, GmbH

Yokohama Industrial Products Japan Co., Ltd.

Yokohama Tire Corporation

Alliance Tire Europe B.V.

Alliance Tire Group K.K.

Alliance Tire Americas Inc.

Yokohama Industrial Products Italy S.r.l.

Aichi Tire Industry Co., Ltd.

Yokohama Tire Manufacturing Virginia, LLC.

LLC Yokohama R.P.Z.

Yokohama Tire Retread Company Limited

Yokohama Tire Manufacturing Mississippi, LLC.

Yokohama Russia L.L.C.

Yokohama Rubber Marine & Aerospace Co., Ltd.

Yokohama Industries Americas Inc.

Asia (other than China)

PRGR Co., Ltd.

Yokohama Industries Americas Ohio Inc.

Yokohama Asia Co., Ltd.

HAMAGOMU AICOM INC.

Yokohama Industries Americas Mexico S. de R.L. de C.V.

Yokohama Tire Philippines, Inc.

Hamagomu Fudousan Co., Ltd.

Yokohama Aerospace America, Inc.

Yokohama Tire Manufacturing (Thailand) Co., Ltd.

Yokohama Peer Support Co., Ltd.

Yokohama Rubber (Thailand) Co., Ltd.

China

Y.T. Rubber Co., Ltd.

Yokohama Rubber (China) Co., Ltd.

Yokohama India Pvt. Ltd.

Yokohama Tire Sales (Shanghai) Co., Ltd.

Alliance Tire Company Ltd

Hangzhou Yokohama Tire Co., Ltd.

ATC Tires Private Ltd.

Yokohama Industrial Products – Hangzhou Co., Ltd.

Yokohama Tyre Vietnam Inc.

Suzhou Yokohama Tire Co., Ltd.

Yokohama Industrial Products Asia-Pacific Pte. Ltd.

Shandong Yokohama Rubber Industrial Products Co., Ltd.

PT. Yokohama Industrial Products Manufacturing Indonesia

36External Evaluation
Yokohama Rubber is included in the FTSE4Good Series, the FTSE Blossom Japan Index, and the MSCI Japan ESG Select Leaders Index. The
FTSE4Good Index is an influential reference for investors who are interest in environmental, social, and governance (ESG) performance inallocating equity investment, and Yokohama has been part of that index continuously since 2005. The FTSE Blossom Japan Index and the
MSCI Japan ESG Select Leaders Index, meanwhile, are two of the three indexes that Japan’s Government Pension Investment Fund (GPIF)
adopted on July 3, 2017, as benchmarks for ESG performance.

FTSE4Good SeriesThis is an ESG index provided by the major global index provider FTSE Russell, which is a wholly-owned
subsidiary of the London Stock Exchange Group that configures and manages indices.

FTSE Blossom Japan Index
FTSE Russell configures and manages the FTSE Blossom Japan Index as a benchmark for ESG
performance at Japanese corporations.

MSCI Japan ESG Select Leaders Index
MSCI Japan ESG Select Leaders Index is an index of shares of Japanese corporations created by the
US company MSCI Inc. that supplies research-based indexes and portfolio analytics to the world’s
leading investors.

List of awards received in FY2017
Name of award or certification

37

Organizer

Business location awarded

FY2017 Circular Resource Techniquesand Systems Award
Encouragement Award

Japan Environmental Yokohama Rubber
Ibaraki Plant
Management
Association for
Industry

Logistics Environmental Special Award

Japan Federation of
Freight Industries

Reason for selection
Achieved efficient resource recycling through efforts to reduce production
and disposal volumes of resin mold materials for hose manufacturing at
the Ibaraki Plant* A related article is available on page 16.

Yokohama Rubber/
Hamagomu Logistics

Contributed to reductions in CO2 emissions, countermeasures in responseto the shortages of truck drivers, and the alleviation of crowding in port
districts through round use with multiple shippers (exports) for tire
imports from Thailand, the Philippines, and China

Good Design Award
Japan Institute of
iceGUARD 6 passenger vehicle tires
Design Promotion
GEOLANDAR M/T G003 mud terrain tires
for SUVs and pickup trucks

Yokohama Rubber

In recognition of qualities including outstanding design and performance,and outstanding convenience from the perspective of users

2017 NTDA Tyre Industry Awards“Industry Marketing Campaignof the Year”

National Tyre
Distributors
Association (UK)

Yokohama H.P.T. Ltd.
(YHPT)

TyreSafe Awards 2017

TyreSafe (UK)For making an appeal for the importance of tire safety to tens of thousandsof soccer fans through the use of digital technologies and the Internet,
including the use of electronic billboards that display safety awarenessmessages at home games of Chelsea FC in the English Premier League thatYokohama Rubber serves as an official partner for and also sending safety
messages through YHPT and Chelsea FC SNS

Our project was certified as GeneralSocial Survey Project.

State Council of thePeople’s Republic of
China

Ecological protection
project supported by
Yokohama Tire Co., Ltd.
(China)Ecological conservation project (conservation of the ecosystem by allowing amountain village to shift from an economy that had been dependent only on
felling of trees to agricultural and livestock production) in the Laojun
Mountain Nature Reserve in Lijiang, Yunnan Province that Y-CH has
supported since 2011 has been certified by the Chinese government as aproject with the highest possibility of success for environmental conservation* The Chinese General Social Survey is a survey that plays an important rolein Chinese policy decision. CSR Report 2016 (P19-20) contains an article
related to this project. Back issues of the Yokohama Rubber CSR Report areavailable from the CSR website.

Acquired certification as Office inHarmony with Nature®

Association for
Business Innovationin Harmony with
Nature andCommunity (ABINC)

Yokohama Rubber
Hiratsuka Factory

In recognition of biodiversity activities that include holding and recording
regular bird observation events on the premises, implementation of
ongoing researches on the fixed quantity of CO2 absorption as monitoringof the changes accompanying the growth of the trees planted on thepremises, river conservation activities in Hiratsuka City (monitoring of water
quality, aquatic life, birds, and vegetation, removal of foreign species, andcleaning activities), tree planting activities, and sapling donation activities.

Summary of Third-party Opinion
This opinions has been written based on the contents of this report, interviews held with people at Yokohama Rubber, and field observation.
IIHOE

Hideto Kawakita
CEO and Editor/Publisher of Socio Management
International Institution for Human,
Organization and the Earth (IIHOE)IIHOE:The International Institute for Human, Organization andthe Earth is a non-profit organization established in 1994
for the democratic and balanced development of all the
lives on the earth. Although it mainly provides
management support for citizens’ groups and welfare
workers, the group is also heavily involved in providing
CSR support to large corporations.

Truly Commendable Areas
Conservation of biological diversity: Planted over 520,000 trees in the
Yokohama Forever Forest Project, and has provided seedlings both in-houseand to other companies. I look forward to the evolution of themulti-language portal site.
While Approving of Progress, Areas that May Require Further Improvement• Reduction of environmental impacts: Achieved target of 100% for
products that feature environmentally friendly technologies. Usage ratio ofregenerated rubber improved by 2.3%. I look forward to the thoroughvisualization of issues and methods including participation in thedevelopment of load reduction technologies for the vulcanization process,the adoption of just-in-time systems for energy, and increased energy
conservation at the use stage.
• Improvement of workplaces’ ability to retain employees: 6.60% of
Yokohama Rubber employees took advantage of various systems in order tocare for a child or family member in need. Yokohama Rubber continued toAppassionata, Inc. President and Consultant

Joanna Sook JaPark
Appassionata was established in 2000 to promote awork-Life balance and diversity. Appassionata has
supported many companies with human resources
development and awareness reform in areas such as
unconscious prejudice, diversity, and telework (working
from home).

Based on the slogan of “Caring for the Future”, Appassionata creates value incooperation with stakeholders.
Ideal working environments: I commend listening to the feedback from thepeople involved in task activities, understanding needs, and the introductionof systems including those for telework as efforts that have led to a reduced
employee turnover rate. I look forward to measures in the future that allow
employees to realize their capabilities while being engaged in rewarding work.
In addition, I commend the employment of people with disabilities overthe statutory ratio and the provision of environments that allow people withdisabilities feel reassured in working, including the holding of individual

hold nursing care seminars and conduct employee questionnaires. I lookforward to the establishment of an environment that allows employees tocontinue working while on leave.
• Enhancement of the human resource portfolio: An employee from anoverseas subsidiary has been assigned as a Corporate Officer. I look forward
to the specification and prompt development of next generation
management posts at the Head Office based on the long-term targets inanticipation of the 2020s.
• Employment of persons with disabilities: An employment rate of 2.18% has
been achieved for the Group in Japan. I look forward to the prolongation ofcontinuous service in cooperation with sales and marketing support
companies.
• Employee safety: Countermeasures have advanced in response to major
accidents at business sites overseas. The expansion of on-site safety
management and safety governance and detailed reports on progress are
required.
• CSR at suppliers: I commend the continuation of CSR workshops, feedbackon the results of self-checks, the commendation system, and the support forthe promotion of agroforestry in Thailand. I look forward to more detailed
evaluation of items in checklists and the establishment of systems forinteraction.
Areas that May Require Further Improvement• Corporate governance and CSR promotion system: I have concerns that no
KPI have been set and the value creation story is unclear. I look forward to the
top management clearly and specifically communicating in their own words
on the necessity for CSR measures, and for the development of a strategy andsystem assuming a business model in the global market in the 2020s.
• Reports and communication: There were no opportunities for ongoingengagement at main business locations. I look forward to improvements inthe timeliness of non-financial information disclosure in order to build atrusted identity.

interviews on a regular basis. I look forward to further expansion in thework areas for people with disabilities to deepen interaction with generalemployees and promote the understanding of diverse human resources.
Education and training: I commend the ongoing efforts to raise awarenessof CSR in various forms of human resources training and the deepening of acommon awareness and positive relationships with business partners at CSR
workshops. I also commend efforts to create safer local communities, suchas ongoing joint emergency drills with schools for the blind and learning
about evacuation guidance consideration for people who are blind.
Yokohama Tire Philippines: The percentage of full-time employees is high,and the turnover rate (8%) is also below the regional average (15%). As thewomen in management percentage is also 30% and three of sevenmanagement positions are locals and two are women, I commend the active
participation of diverse local human resources. The Yokohama Rubber
parent company could learn from this diversity of leadership. In addition,
the fire that occurred last year is being used as a lesson, and efforts arebeing made towards employee safety and disaster prevention including
regular firefighting and evacuation drills.
I hope that the company achieves a balance between businessdevelopment and social contribution over the next 100 years as well while
putting into practice “Yokohama Rubber core values”, the unique qualities of
Yokohama Rubber.

Response to Third-Party Opinion
We will make even further efforts in areas where we havereceived positive feedback, and we will make sincere
improvements in response to suggestions andrecommendations regarding our CSR initiatives.
The Yokohama Rubber Group is focusing on overall
safety inspections, facility improvements, and safety
awareness raising activities Group-wide, and we will makeeven further efforts going forward. In addition, we will
make ongoing improvements in working environments sothat people in diverse environments can work healthilyand soundly over the long term. We hope to further

deepen ties with local communities through activities
such as the Education Forest Project.
Under the GD2020 medium-term management planthat aims for sustainable growth over the next 100 years,
we will further strengthen corporate governance andsolidify trust from society based on the CSR Slogan“Caring for the Future”.

Officer, Head of Corporate Social Responsibility Division

Shigetoshi Kondo

38

The Yokohama Rubber Co., Ltd.
36-11, Shimbashi 5-chome, Minato-ku, Tokyo
105-8685, Japan

Corporate Communications Department
Tel. +81-3-5400-4531

Corporate Social Responsibility
Planning Department

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Tel. +81-3-5400-4705

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Yokohama Rubber is a signatory to the United Nations Global Compact.
Yokohama Rubber is an advocate of Fun to Share, a climate change program working to realize a low-carbon society.
Yokohama Rubber Group is an official partner of Chelsea F.C.