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Corporate Social Responsibility 2013 SUSTAINABILITY REPORT MESSAGE FROM THE PRESIDENT AND CEO “Consider what we can do.” Reaching out to Society All Yokohama Groups have the same policy under Aside from the Forever Forest, we must also promote It is my concern to find an internal approach for our 2013 highlights “Show you care. Give a share.” GD100. new tree-planting activities like the Green Curtain. efforts to save energy and cut fuel costs: through feeding program, outreach, and medical activities conducted. Programs focused on Try to reduce operational use of organic solvent Yokohama offers BluEarth – our eco-energy tires for We can teach elementary students the benefits of environment must be increased for the community. (for cap tread). many people have concern to save gasoline. YTPI not Green Curtain – shade, cooler environment even Consider what we can do. We must have the latest only manufacture products like BluEarth, but also without air conditioning, etc. We should study what Reduce energy consumption through EnerCon information from local communities so we will be promote environment-centered activities, like this particular plant is good for the Green Curtain project activities able to listen, let us know their concerns, and answer year 2013, we had our Forever Forest 6. In Forever and bring seedlings. Then we can show them how to Reduce cost of fuel imports by reducing power them immediately to maintain a good relationship. Forest, people come together with their families to create their own Forever Forest or Green Curtain consumption because like in Japan, fuel is participate to our tree-planting project, considering after classes. expensive in the Philippines. Let us introduce new activities or change some – its importance in the environment. every year we should improve to help others. Our message must be clear to all people – to our The challenge is, each person must consider how to Our environmental activities must be promoted to People here already have concern for the customers, even visitors, suppliers, and contractors. save energy or the environment. I know it's difficult other companies or stakeholders and so we can environment. Maybe it is time that we should do it in We must promote our environmental advocacy well to make big efforts, but little actions to create explain the company's efforts to them and educate a different way. and send a good message to them. Yes, our eco tires awareness already have big benefits. them. are expensive, but we must try a different approach to For 2014, we need additional activities not just within help our customers understand our product and My other concern is the new development of our company. It's time to go outside and make new educate them about our new tires. commercial buildings like hospital and offices round friends. Inviting people to come is good, but going our area – we have to make a plan and invest to find out for them is better. Our employees already know how environment & out how to contain or minimize the effects (noise or safety-minded our company is. smell), even though we exist in an industrial park. We We must also be able to create activities and events must consider how to make a good relationship with outside – I know Filipinos love events! – especially One of my targets is the organic solvent – we are still our neighbors. for children. If we invite kids, maybe they can also using a lot and it costs us too much. bring their parents: that way, they will remember our company. It will be good for them so that's good for us. Tadashi Suzuki President and Chief Executive Officer Yokohama Tire Philippines, Inc. 2 Sustainability Report 2013 Yokohama Tire Philippines, Inc. 3 CSR MANAGEMENT CONTENTS CSR Perspective CSR MANAGEMENT: THE YTPI WAY 5 GD100 Centenary of Yokohama Rubber Co., Ltd. Corporate Philosophy Vision Producing Quality tires is our greatest pride. We are proud of our work and Evoke a distinctive global identity in building corporate value and in find satisfaction in seeing that tires we produce meet our customer’s building a strong market presence. exacting needs and high standard. ABOUT YOKOHAMA TIRE PHILIPPINES, INC. 6 We aim to accomplish all these at the same time that we: Corporate Profile Basic Policy for Fulfilling Vision a.) work to preserve and protect the environment and the Earth’s resources Deliver the best products at competitive prices and on time b.) develop the skills and potentials of our personnel Manpower c.) and employ our machines with the maximum efficiency and productivity Assert world-class strengths in technologies for protecting the Awards and Recognition environment This is our Corporate Philosophy. It is a philosophy that we are confident will succeed and will contribute to the well being of all our stockholders and Soaring High: The West Plant Project Foster a customer-oriented corporate culture that employees and to the economic development of the Philippines. honors rigorous standards of corporate ethics PRODUCT RESPONSIBILITY 10 YTPI Mid-Term Vision Our Company’s Commitment to Quality 2012-2014 (GD100 Phase III) Strong and Healthy Growth Initiatives towards Product Reliability Financial (60% increase sales by 2014 vs 2011) Sand in Tire: An Environmental Friendly Filler Option Customer Production Quality Most reasonable price achievement per High Quality On Time Delivery Delivery customer spec in Asia ENVIRONMENTAL PERFORMANCE 15 Cost Operational Efficiency / Eliminate capability restrictions Raw Material Consumption Capacity Up (lead time, productivity) Material Machine and Planning Production Inventory Shipment Energy Consumption Efficiency Internal Handling Utilities Phase 4 expansion Order and capability Improvement of Reduction of Process match-up Develop competitive Stable, safe and inventory management unshipped tires realization Reduction of Scrap Waste Management Environment Availability of suppliers uninterrupted utilities inventory variance Improve logistics Quality financial resources cost Delivery Initiatives towards Environmental Management Expand capacity Cost All Process: Elimination of MURA MUDA MURI to produce Improve first-pass yield (no-rework) Increase productivity (tires per person) Eco Tires Prompt delivering of services and information Improve energy efficiency COMMUNITY DEVELOPMENT 20 Culture of Continuous Culture of Maximize Use of Learning & Planning Motivated Employees Improvement Compliance Information Systems Initiatives towards Community Development Growth Develop multi-skilled Improved leadership Awareness of improvement Simplify and enforce SOP employees Maximize use of information Safety (participation in improvement Full implementation of systems Environment Cost-awareness among Employee support services programs) management systems Man employees are properly delivered Good External relations SAFETY AND HEALTH 22 MISSION: STRATEGY: MOTTO: YEAR 2013 Safe Plant and Quality at source “Think Future. Act Now” Initiatives towards Safety and Health VISION Best Quality Product Step Up Proactive Actions thru Effective Monitoring in the Workplace Safety Performance for the Year 2013 CSR Vision Statement CSR Framework Health through Awareness YTPI envisions itself as being a catalyst of sustainable and Triple bottom line approach that concerns not only the most relevant CSR Programs to give back to the financial but also social and environmental aspects. We MANPOWER DEVELOPMENT 24 community and people through committed partnerships. believe that “Running a Good Business” does not only focus on earning and profiting but also on the contribution Trainings and Seminars CSR Mission Statement that we give to the society as well. Manpower Skills Level-up CSR shall be based on thrust of Environmental Protection, Run a good Financial Initiatives towards Corporate Culture Education, Community Welfare and Services and Culture Sustainability of business that will goods and sustain livelihood of Important Note: of Respect for Individuals. employees and Labor-Management Council: Building Partnership resources for the This report is based on information company without support to the available as of December 2013. Through Shared Responsibilities CSR is based on tripartite partnership of Company, compromising Corporate Social communities the future Environmental Responsibility Actual performance may differ by Employee and Community for Program Sustainability and generations the time of the release of this Involvement. publication. TECHNICAL WORKING GROUP (TWG) 27 CSR shall promote a culture of volunteerism and Address the needs of the Respective titles, job position About This Report community by sharing of Social and/or organizations, etc. refer to selflessness among all stakeholders to work together for resources as our Corporate Responsibility those at the time of reporting. Our Stakeholders others. 4 Sustainability Report 2013 Yokohama Tire Philippines, Inc. 5 About the Company Yokohama Tire Philippines, Inc. In its aim to be globally competitive, The Yokohama Rubber Company, Ltd. (YRC) partnered with JFE Shoji Trade Net Worth and Income Statement Corporation (formerly Kawasho Corporation) to establish its first tire manufacturing facility in Asia outside Japan. This Yokohama Tire Philippines, Inc. has started its initial production for joint venture in April 30, 1996 created the subsidiary company named Yokohama Tire Philippines, Inc. (YTPI) and aimed Plant Expansion-Phase1 in February 2013. Though it has resulted to Net Worth to produce “Yokohama” brand passenger car radial (PCR) and

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