2015 Sustainability Report Grow. Sustain. Care.

This report details how Yokohama Tire Philippines, Inc. grows its business and making it a sustainable one by taking care of its people, its environment and its community. YTPI does not operate on profitability alone but also contemplate on triple bottom line: social, environmental and financial.

Sharing with you the 7th issue of our sustainablity report, Yokohama Tire Philippines, Inc. presents our initiatives on being a responsible organization to our stakeholders.

In this report, we highlight our 2015 activities that focus on social and environmental impacts that would improve our operating efficiency, which are detailed as you go along each page.

We aspire to contribute to the total wellness of the society as well as to the environment where our plant operates. Beyond business, we feel rewarded and fulfilled each time our publics’ advancement evolved to something that we have envisioned.

This annual sustainability report merely covers the operation here in the country and not for the entire corporation of Yokohama Rubber Company. Our first priority in making a sustainable community is the region where we operate, and as a result, most of our corporate social responsibility activities are being executed in the said area.

This report was prepared in accordance to Global Reporting Initiative’s G3 Reporting Guidelines to standardize the organization’s disclosure on material information. Likewise, data presented herein covers the calendar year of 2015, from January to December. Figures and statistics declared were considered with utmost accuracy. Mentioned names of people in position within the organization are based on actual reporting, changes after the production may be covered on the next issue.

We hope it inspires you to become a responsible stakeholder as we all should be.

Should you require any further information, please contact the undersigned:

Angelina C. Casasola VP, CSR & Business Operations Department E: [email protected] T: +63 45 599-3603 F: +63 45 599-3613 4 From the President

6 Who We Are CONTENTS 8 Tires You Can Trust 12 Our Performance 14 Our People 20 Our Environment

26 Our Community 30 2016 & Beyond From the President

Giving back to the community - I think this is our mission. We have to continue making profit, to continue our CSR programs, to support our society.

To our fellow stakeholders, e have stood 2015 and I am pleased to announce that it was one of a great year, not just in terms of business but also goes out for Wour sustainability performance. The past year is the first of three stage GD100 Phase IV, our midterm policy until 2017. This policy frameworks continuous improvement in all strategies: capability build-up, product and skill development and profitability. Alongside, YTPI arranged six fundamental areas: safety, environment, quality, delivery, cost and human.

In a related development, YTPI engaged into safety programs such as Forklift Competition and Night Earthquake Drill which resulted to a hundred percent 4 compliance to risk assessment. In fact, in bringing out our fire brigade ‘Young Guns’ in a regional competition facilitated by the Bureau of Fire Protection, we took home the second place award.

Our environmental management programs carried on as YTPI marks the 8th anniversary of Forever Forest with 4, 735 seedlings planted. Further, chemical spill training and clean-up drive were also brought out.

But the key focus of this report is our commitment to help improve the lives of those who need us most, further strengthened our determination to serve.

As we have been to a series of corporate social responsibility programs during the year, particularly the feeding program and medical missions. I was able to go out with the team and reached out to our communities. I have witnessed what the current real situations are and identified the needs of the society we belonged in. It made me reflect to what the real duty is of Yokohama Tire Philippines. Giving back to the community, I think this is our mission.

In fulfilling our corporate mission, we have to achieve our target production, quality and practice muda dori (scrap reduction). We have to continue making profit so we can continue our CSR programs. There is an enormous need to support our society, to rise above poverty. If there is no profit, we can’t continue doing such activities, we cannot help.

We need to work harder, be ahead and aim together toward one goal, and that is to be YRC’s number 1 plant. I have the confidence that we can do it in three years’ time.

Thank you all for your support and understanding, we are able to continue our business. I appreciate you. As a pledge, we continue and strengthen carrying out our CSR activities.

Let us all take this journey as we enter the year of our 20th founding anniversary. You will be part of all the exciting endeavors ahead.

YASUHIRO KUROKAWA President and Chief Executive Officer

W h o W e A r e 5 9 mins. to Subic-Clark-Tarlac and North Luzon Expressway 12 mins. to Clark International Airport 1.5 hrs. to Port of Subic 1.5 hrs. to Manila 4 hrs. to

WHO WE ARE

he Yokohama Rubber Company Limited, an international brand, is a leading manufacturer of high performance tires. It was established in 1917 in Yokohama, as a rubber company that has a diversified line of business such as aircraft products, Thigh-pressure hoses and other industrial products. With many subsidiaries and operations worldwide including the USA, YRC handpicked the Philippines to be their first Asia’s facility outside Japan as they consider the location stands as the hub of East Asia.

Expanding in Asia

It was in 1996 when YRC partnered with Kawasho Corporation of Japan (now JFE Shoji Trade Corporation) and established Yokohama’s very first plant outside the initiating country. 96% of the ownership goes to YRC Product Destination and the rest is of JFE.

W h o W e A r e 6 Company Name: Yokohama Tire Philippines, Inc. Product: Pneumatic Radial Tires Incorporation Date: April 30, 1996 Company Address: IE-5 Clark Freeport Zone, PH 2023 President: Yasuhiro Kurokawa Lot Area: 45.2ha Building Area: 26.52ha Workforce: 2, 326 employees Plant Capacity: 30,000 tires daily

Yokohama Tire Philippines, Inc. was then vested in the industrial site of Mabalacat, Pampanga, the Clark Special Economic Zone. Strategically located, Clark is equipped with an international airport, near Subic port area as well as few hours on the way to the capital city of Philippines which is Manila through North Luzon Expressway.

Choosing Filipinos to be in the combat zone of workmanship, Yokohama believes in our skills and as they say, combining Japanese high technology with Filipino craftsmanship is a superb distinction.

Filipinos were then sent to Japan, in where the head plant of YRC is located, to undergo training on producing quality pneumatic radial tires for passenger vehicles. A couple of years after, with right set of skills, YTPI is ready to begin the production.

At present, YTPI is the only rubber company that operates here in the Philippines.

The first ever tire was then released and millions follow thereafter. At present, 95% of which is being exported worldwide while only 5% is for the local market.

Moving Forward Since it started, YTPI has been In claiming this, YTPI breathes up to marking the exporting standard by the core values: Auspiciously, in the last quarter of living through its vision of: 2014, Yokohama drives fully the rights “Dedication, Sincerity and as it was able to acquire hundred “We will be number 1.” Excellence” percent of the proprietorship. And today, YTPI’s commitment to And being number 1, among We continue to develop the skills global industry is to deliver an average Yokohama’s plant global, could be and potentials of our people and of 22,000 tires per day. Another 15, achieved through our sense of duty of employ our machines with maximum 000 will be on production once the satisfying the customers’ needs and efficiency and productivity. west plant is ready to fulfill the daily high standards by delivering the best Guided by these philosophies, we are requirement, hopefully by 2017. tires while at the same time, never confident we will succeed and will leaving behind our compassion for the contribute to the well-being of our environment and responsibility to a stakeholders and to the economic

sustainable community. development of the country. T i r e s Y o u C a n T r u s t 7 Tires You Can Trust

The technology of infusing orange-oil is what makes Yokohoma tires stand out. Derived from orange peel, this oil creates a distinguished better grip, fuel efficiency and extended tread life. Currently, these are the line of products being manufactured at Philippine plant.

T i r e s Y o u C a n T r u s t 8 Kaizen, change for the better

On our commitment of giving customer satisfaction by meeting exacting needs, YTPI is making continuous improvement on standardized processes on all functions that involve workforce. Constant change on doing better is a business philosophy in producing our quality tires and this year, series of kaizen activities were carried out and applied.

Outstanding quality is a tough yet a Locally, TUV Nord and the challenging role for Yokohama Tire Department of Trade and Industry Philippines. This year we have lived look on us on surveillance audit, up to the theme ‘Go back to the and on customers’ QUALITY basics and continuously pursue 4M inspection. On the other hand, we have ISO/TS16949: 2009 (Man, Machine, Method and Material) recently shifted to SGS Philippines Quality Management System improvements, to provide the as we believe new eyes could further products our customers demand’. contribute to our improvement. In keeping up with the quality In going global, Fiat Chrysler, Ford, standard, the Quality Assurance and CCC and BIS are also being taken in Technology team of YTPI conducts an carefully. Yokohama Rubber Company, internal audit yearly to assess and of course, will never leave us behind evaluate our compliance to in terms of quality management sys- ISO/TS 16949 requirements including tem as they conduct the same audit in

Customer Specific Requirements. Philippine plant annually. T i r e s Y o u C a n T r u s t 9 SEISO (SHINE) 3S: “Clean as you go.” s the Japanese culture found a downtime and produces quality tires. workshop and manufacturing area. way of workplace organization The main objective of levelling up A cross process audit efficient and effective through to a 3S workplace discipline is to conducted by each process is 5S, YTPI puts into practice carry out in each employee the habit of required in application of 3S. For an Aat most Seiri (Sort) and Seiton (Set cleaning up. Cleaning is essential in instance, a 3S auditor from Distribution in Place), or coined as 2S within the eliminating dirt and foreign matter (FM) will have to check Boiler’s 3S board and organization. which can contaminate the raw mate- activities. The primary goal for The Manufacturing Development rials and eventually may result to the executing such practice is to have a Group (MDG) believes that the production of poor quality tires. Clean keen observation on the good habits key to achieve high quality and environment can also eliminate and ideas of the other process and productivity is to level up this 2S to 3S, harmful bacteria and viruses that adopt it on own process. adding Seiso (Shining) to drill. could affect employees’ health which Consequently, monitoring of may have an impact on productivity. Seiri - A Place for Everything. Keep compliance and performance what is needed and discard what According to MDG, high level of is being done through regular is not, this workplace discipline product quality and productivity assessment through 3S Audit Check will eventually lead to reduction of must be visible in the showroom or Sheet which is being performed unnecessary cost to the company. workplace which reflects a world-class weekly. On the other hand, work attitude. standardizing the new mantra, a Seiton - “Everything in Place”. documented procedure was also Everything must be stored in an Planning transpired in the first created to establish a criterion that organized manner and should be quarter of the year and the 3S system serves as everyone’s guideline on properly labelled. Easy access and was fully implemented in October. New ensuring and maintaining a safe, clean quick identification of things at methods of implementation were then and efficient workplace. This will serve workplace results to efficient introduced by defining the as audit criteria as well. process flow and therefore increases requirements and communicated the productivity of the workers. them through dynamic visuals in To keep everyone inspired and Uncluttered workplace prevents order for everyone to have a common eager to participate as well as accidents related to poor understanding and format. continuously exhibit 3S at their housekeeping. workplace, YTPI recognizes these Along with a designated 3S spot and employees through awards. Seiso - “Clean as you go”. Clean board, in which the 3S auditor will Appreciations could be in form of workplace keeps employees away position to have a better view of the certificate and monetary given at the from accident and sickness, thus, whole area and will be able to check end of calendar year. increases the morale of the activities in a daily basis and its employees. On the other hand, clean improvements, there are also three machine prevents unproductive key areas submitted for audit: storage,

3S Board 3S Audit Spot

T i r e s Y o u C a n T r u s t 10 SEISO (SHINE) “Clean as you go.”

before

Previously, the procedure of loading of This system is designed with the technology chemical bags to chemical tank is being of Quick Response Code or QR Code, a matrix prepared through visual management in barcode or two-dimensional barcode initially which the team’s productivity is based on intended for the in Japan the actual picture posted on the board as but is now popular due to its fast readability and a comparison to the essential materials. greater storage capacity. However, the error rate of human failure then is relatively high because of some A mixing operator equipped with a QR dispatch unintended interaction between the t ag has to sc an the deliver y t ag at t ached to each operator and the machine. For an instance, chemical bag with a barcode scanner. After door locks of all tanks can be unfastened by scanning the delivery tag, tank door will be mistake, as the Japanese called it ‘Pokamis’. unlocked without accessing the others. In This fortuitous zone could actually lead to Chemical addition, the QR code can also detect expired under -cured or no green tires good for curing materials and numbers of chemical bags to which calls for ‘Poka-yoke’ or error-proofing. Weighing replenish. All the data then will be automatically stored to the inventory system. Taking human error as a contributing factor System in safety failure as well as to product quality With this intelligence, YTPI can now assure that deficiency, the process of Mixing has finally the chemical materials mixed at cured tires are let go the art of visual communications and of hundred percent in quality prior to delivery. invested on high technology equipment, a Chemical Weigher Scanning System.

ED

! after

T i r e s Y o u C a n T r u s t 11 Our erformance OurP total production in 2015 increased by 3.5%, producing an additional 246,807 tires in the annual production compared to the previous year. With this increase, the company has recorded an average of 22,000 tires in its daily production - the highest annual average daily production in the history of YTPI.

Total Production. Knowing that high inch the west plant was completed this year, it is tires are gaining popularity, YTPI was quick to projected that YTPI’s production capacity will develop new tire sizes at its west plant. continue to increase in 2016. With Significantly, Light Truck (LT) tires a target of 37,000 tires per day, production increased by 81% compared to the Philippine plant has the highest production previous year. capacity among YRC subsidiary plant outside Japan. As the two-phased expansion project of

8,000 7,384 7,138 6,901 6,986 7,000 6,743 6,009 6,134 5,641 5,664

Thousands 6,000

5,000 4,468

4,000 3,048 3,000 2,580 2,003 1,699 2,000 1,472 1,641 1,685 993 1,000

- 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

O u r P e r f o r m a n c e 12 Net Income 350.0 327.4 14% SALES OPERATING PROFIT OPM 13% 300.0 288.5 290.2 12% 269.0 243.7 250.0 10% 237.1 10%

200.0 8% 7% 7% 150.0 6%

100.0 4% 4%

2% 41.5 50.0 2% 25.0 17.9 21.1 12.0 5.9 - 0% Y2010 Y2011 Y2012 Y2013 Y2014 Y2015

The increase in production have resulted to an increase in sales. With a net sales of $327.4M in 2015, YTPI has recorded its highest operating income amounting to $41.5M or increased by $20.7M compared to previous year.

Net Income. Extensive programs on cost reduction Equity. YTPI’s equity has increased by $33.4M, from contributed to an increase of $17.9M in net income $178.6M in 2014 to $212.0M this year. This is due to compared to previous year. With a lower price market the increase on retained earning account which is the of raw materials, mainly natural rubber and oil, YTPI result of increase on net income. benefitted from an average of 14% decrease compared to On the other hand, the decrease on asset have standard prices. To reduce further, the company doubled its resulted from the decrease on inventories by $14M due to effort to tap local or alternative suppliers to cut cost on raw low finished goods and raw materials inventory. Another materials. Expenses were also maximized compared to factor to consider is the decrease on property, plant and 2014 due to increase in production. equipment, mainly due to the increase in depreciation of building and molds.

Balance Sheet 450.0 ASSETS LIABILITIES EQUITY 400.0

384.2 350.0 374.9 343.1 300.0

250.0 264.1 178.6 200.0 162.7 194.6 212.0 150.0 144.6 90.7 163.2 100.0 82.2 50.0

62.4 104.0 101.0 180.4 205.7 162.9 - Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 *million dollars O u r P e r f o r m a n c e 13 People are at the core of everything we do and they are the key to our success. At YTPI, we provide opportunities to our employees to strive harder and further. Along with Our healthcare, rice incentives, monetary bonuses and other benefits, we give chance for our people to move up at their career eople profile while building their families PAt present, we have a total of 2, 326 employees which consists of 142 female and 2, 184 of opposite gender. We welcomed 297 employees this year through different talent acquisition channels while making sure 90% of which are sourced locally here in the region.

Workforce

O u r P e o p l e 14 While our people work on their career goals and ambitions in life, YTPI creates a work-life balance environment for them. A healthy working environment has an impact on the well-being of an individual and enabling our employees to have fun at work could in fact increase happiness and job satisfaction. Through the Labor Management Council, YTPI arranges various company activities that promote social engagement and they are as follows:

Sports Festival. We engage our employees in sports and fitness activities to encourage a healthy lifestyle and social interaction in the spirit of camaraderie and fair play. A wide selection of sports, such as basketball, volleyball, bowling, billiards, darts, chess, badminton and table tennis were steered, so employees can have the luxury of choosing which among is the best for their personality and strength.

Company Outing. Every summer, YTPI organizes an outing that could be the best time for employees to take their minds off of work and just enjoy. We make them feel refreshed and renewed so they can come back to work with more energy and zest, ultimately means happier employees. This year, the team headed out to Miami Heat Beach Resort in Morong, Bataan.

Work-Life Balance

Family Day. YTPI recognizes family as an important unit of our society. Annually, a family day is being carried out to give opportuni- ty to spend more time together with the loved ones, fostering unity and understanding among our employees and between their families. Villa Alfredo’s Resort at San Fernando, Pampanga served as the venue in 2015.

Christmas Party. Celebrating the yuletide season with the whole YTPI family is also a yearly event that comes to be more exciting with so much entertainment and great raffles prizes.

O u r P e o p l e 15 Lactation Facility Even at a minimal percentage that makes our workforce, Yokohama is totally aware of the necessities of our women employees. A lactation facility was opened this year to meet the need of those who are on breastfeedin, which includes a manual breast pump and refrigerator for storing expressed breast milk.

Along with an annual medical examination, a number of various lectures on specific target audience were steered as well to encourage employees to exhibit a dynamic healthy working environment and living.

Bloodletting Additionally, YTPI conducts bloodletting drive to encourage its employees to donate and help through a program done yearly in cooperation with Philippine Red Cross.

O u r P e o p l e 16 CORPORATE WELLNESS As Yokohama Tire Philippines, Inc. considers employees’ health as a smart investment, a periodic health assessment is being seized once a year. It is on the course of the organization’s objective towards an ideal workplace that primarily aims to control and prevent ailments and chronic diseases.

O u r P e o p l e 17 SAFETY CULTURE

Going back to the basics has been the mantra of YTPI this year. In addition to Personal Protective Equipment (PPE), having the right set of safety attitude is the key to prevent unnecessary incidents. Ten principles for a strong safety culture were brought out to be pursued consistently in a day’s life.

Safety OHSAS 18001:2007

O u r P e o p l e Safety Management System 18 Safety Activites AS JULY IS KNOWN AS THE NATIONAL SAFETY AWARENESS AND PREVENTION MONTH, YTPI ORGANIZED ACTIVITIES IN LINE WITH THIS AND THEY ARE AS FOLLOWS:

Search for ‘Safe Man of the Day’. Instead of looking for was also present during the activity to guide and evaluate the unsafe findings, YTPI shifted to a more positive approach activity. on patrolling, the search for safe man of the day. This is to Emergency Preparedness Response. The Safety Management encourage employees to put in mind safety all the time and System also initiated an Emergency Preparedness and act accordingly. “I” complete the key in making YTPI a happy Response seminar and benchmarking activity to schools and and safe workplace. universities around Pampanga as observance to National Forklift Driving Competition. YTPI’s daily operations involve Disaster Consciousness Month. Three universities received a critical activity aside from machine operations, that is EPR seminar particularly Holy Angel University, Angeles forklift driving. Training and certification on forklift driving University Foundation, Republic Central Colleges. Another, was conducted not only to test the ability but as well as the eight high schools namely Angeles City Science, Mabalacat discipline of Certified Forklift Operators. Routes and obstacles National, Mauaque Resettlement, Telabastagan Integrated were set along with judging criteria: starting of forklift, initial and three for grade schools, Pandan, Dau and Villa Teodora. forward, operation ability, stopping and parking the forklift and Along with these activities, a firefighting competition was speed. carried out in March in observation of the Fire Prevention Night Earthquake Drill. How well are we prepared to handle Month. earthquake emergency - that is basically the question that Firefighting. Security team aced the 3 categories (fire prompted YTPI’s Incident Commander to have a drill activating extinguishment, busted hose and up the ladder and bucket the company’s Emergency Response Team. The team opted relay) of the internal fire brigade competition took place in to have an evening drill considering that disasters come the first quarter of the year and proceed to the regional race. unexpectedly, even at the most critical time – night time. With 2015’s internal fire brigade competition is the 10th year of an assumed earthquake intensity of 8.6, the drill materialized YTPI’s effort on turning employees more equipped of firefighting through leadership of IC with the following teams’ simultaneous skills essential in company’s emergency preparedness and response: facility, search and rescue, first aid, evacuation and O u r P e o p l e response system. Young Guns went on to the regional race crowd control. The Bureau of Fire Protection, Mabalacat City Central Luzon Fire Olympics and placed second. 19 Our Environment While YTPI is creating a world-leading brand, we certainly do not drop environmental stewardship. Our business sustainability starts with an environmental policy of conserving natural resources, thus, we remain constantly aware of the need to reduce consumption on energy, fuel, water and emission of carbon dioxide.

Improving fuel usage. The non-achievement of target on fuel consumption resulted from constant delayed start-up of generator on production and another, irregularities on insulation activities of THX curing machine. Despite non-achievement on the target of fuel consumption, YTPI is persistent on laying out plans and executing them to hit our goal on reduction. Some of the initiatives that were applied this year and will still be carried out onto the next year are steam recovery, steam pipe and trap installation besides regular checking and improvement on dryness.

Target on energy conservation has been decreased to a million kilowatt hour and water will be remained stable as we will be focusing exertions on west plant. All actions have been applied to east plant in the past years.

O u r E n v i r o n m e n t 20 On Conserving Water Supply.The rainwater recovery facility of YTPI was built in 2014 and became fully operational just before the end of that year. It has been the main approach of the plant this year on sourcing independent water supply that could reduce the demand for groundwater. The 1000m³ facility located at west plant relieved our goal of conserving water making the figures three times larger than our target of 15, 000m³. We held off 60, 484m³ of water along with other means such as replacement of cooling tower fin and float valve of chiller and cooling tower. Identifying energy savings.Huge electricity consumption owing to lighting equipment and continuous running of machines and ejector pumps at full voltage on normal and idle operation is one of the angles YTPI is looking at to decrease the consumption rate on electricity. We have eliminated idle running machines and installed inverter as a key on pointing out energy saving scheme and as a result, we have reduced consumption by 588, 600kWh per year. On the other hand, shifting to LED light from fluorescent is one of the efforts that saved us 2, 290, 909.2kWh.

The relative increase on consumption of energy, fuel, water and on carbon emission and wastes have resulted from the increase of our production in 2015. West plant is expected to be fully operational in the next year, thus, our consumption on all parameters is expected to go higher over time. (2013-2015) 3-year comparison 3-year

Environment ISO 14001:2004 Environmental Management O u r E n v i r o n m e n t System 21 Forever Forest On the 8th Forever Forest, 4, 735 seedlings comprised of 45 native species were planted by 525 employees and external volunteers. A total of 54 tree species currently exist in FF 1 and 7.

O u r E n v i r o n m e n t 22 ur approach on reducing carbon emission As a result of improvement actions to reduce energy saving of 3, 095, 093kWh, our carbon Oemission per year declined to 792.56T. YTPI has a strong intent to accelerate carbon reduction programs through Environmental Management System. Our approach on environmental stewardship begins with Forever Forest and engaging community on such activities. On the 8th Forever Forest, 4, 735 seedlings comprised of 45 native species were planted by 525 employees and external volunteers. A total of 54 tree species currently exist in FF 1 and FF 7. A trial biodiversity investigation was conducted at Forever Forest 1 and 7, recording plants and animals exist therein. On 54 tree species identified, 10 are endemic in the Philippines and 15 are listed as threatened on International Union for Conservation of Nature (IUCN) Red List. There are unidentified existing trees in Forever Forest as resources on lists of species that can be found in the country are limited.

Clark Freeport Zone is mainly covered by industrial Above and beyond, the number of trees planted since the establishment and reclaimed land and within a one launch of Forever Forest in 2008 has now reached to 36, kilometer radius, there are no large natural forest. 849 which is sufficient enough to sequester around 800 Forever Forest therefore potentially plays an important tons of carbon dioxide per year upon maturity. role for habitat of forest species around the area. &Biodiversity

Similarly, 12 kinds from the insect family were identified along with 6 birds. 8 BUTTERFLIES 6 BIRDS 4 INSECTS

Birds: Brown Shrike, Pied Triller, Sparrow, Large-billed Cow, Zebra Dove, Black-Head Long-Tailed Shrike. Butterflies: Common Grass Yellow, Plains Cupid, Striped-Blue Crow, Peablue, Lesser Grass Blue, Psyche, Striped Albatross, Mottled Bush Brown. Insects: Dragonfly, Bat, Grass Lizard, an insect with black body.

O u r E n v i r o n m e n t 23 CLEAN-UP DRIVE ECO-PARK

Clean-Up Drive. Cleaning up the grounds of YTPI is a routinely activity that involves employees. It has involved managers and trainees of both Filipino and Japanese representatives as well as Japanese officers. A total of 230kg of wastes were collected. By 2016, the every other month Clean-up Drive frequency will turn out to be monthly.

Waste Management. On influencing community to practice YTPI’s environmental habit, we carried out an initiative that could impart our knowledge on waste management. 33 trash bins were donated to two schools, namely Don Honorio Ventura Technological State University – Porac Campus and San Joaquin Elementatry School, both located in Pampanga. Trash bins are color coded according to segregation of recyclable, biodegradable and non-recyclable. 200 attendees consist of students and faculty members took orientation on waste management.

Eco Park. An ecological park was hurled sideways of the rainwater recovery facility. Pieces from the competition Crafts from Scrap: Rubber Edition were showcased such as garden table set and well made out of scrap tires. Alongside, murals on environmental awareness painted by high school students of Mabalacat and Angeles, Pampanga serve as a backdrop. Eco Park was launched in time of United Nations Environment Programme (UNEP) declared environmental month which is June.

O u r E n v i r o n m e n t 24 WASTE MANAGEMENT

As most companies nowadays have migrated into the most convenient way of implementing online transactions, YTPI is similarly embracing the new technology and business practices. Going paperless could have save the company further on money and BECOMING GREENER: time, higher work efficiency, saves space, easy track- ing of records and above all, helping the environment. The Management Information System (MIS) ventured FROM PAPER TO WEB on new online systems mainly designed for selected programs such as: Work Request, Public Relations and General Services (PRGS) Request and Activity and Trouble Report. This program is a paperless system that eliminates printing of hard copies on papers such as forms, requests and reports. All requests are now being submitted on the web through online portals. Employee Data Inquiry (EDI) credentials function here as a user login that is a pre-requisite in getting into the system and essential in tracing the requester’s profile section. In this sense, Managers and MIS facilitator can certainly evaluate pending request with less effort prior to assigning tasks to the team in charge. An email notification will be sent to the user once approved. MIS Online Request System provides convenience to all employees when requesting services and items As more programs will be implemented in the next and job orders. Generation of reports for monitoring year, it is our goal to reduce paper usage by 20% on purposes in a graphical method is also one of the 2017. Through this initiative, YTPI was able to save features of Online Trouble and Activity Monitoring and paper, creating a greener environment as well as Report System, making an integral part of going live contributing to cost reduction. on the web.

O u r E n v i r o n m e n t 25 Giving back to the community, we collaborate with our employees, health institution, charitable organizations and local governance to support the needs of the society where we operate. Our ommunity CWe know our support is making a huge difference and they are as follows: Feeding Program. Targeting the most Toilet Donation: Focusing on vulnerable children in our society, we students’ well-being continue to assist on ending malnutrition and One of the contributions of YTPI in improve on food security among students by sustaining education is nurturing the providing right food. wellness of students while they are at school. Toilet Donation. As YTPI sees school YTPI has been donating comfort rooms since wellness a vital part of sustaining 2012 and this year’s recipient is one of the education, we have just turned over our public secondary high schools in Angeles. 4th project on toilet donation this year. Rafael L. Lazatin Memorial High School has Scholarship. Every year, YTPI offers an annual 3, 144 students from Grade 7 to university scholarships that encourages and 10 and they only have two functional toilets motivates individuals to excel academically with three cubicles each used by male and and maintain high academic standards. The female students respectively. Through the grants cover full payment of tuition fees and company CSR initiative, YTPI renovated the allowances. two comfort rooms increasing six cubicles to Community Outreach Programs. Meant to ten. fill the gap in the services provided by the With the rehabilitation project, the number mainstream, Yokohama Tire Philippines sees of cubicles in a comfort room developed into this opportunity to lend a hand. In 2015, we five, summing up to a total value of about got four charitable institutions covered. P320, 093.20. Medical Missions. YTPI recognizes adversity of access of selected areas in the region to healthcare and medicines. We make way to bring the mobile care direct to our identified publics who need more.

O u r C o m m u n i t y 26 Toilet Donation

Living in poverty and food insecurity could be one of the hindrances of keeping our children stay in school. Going to school on an empty stomach may possibly have an impact with the decline of number of enrollees annually.

Feeding Program: Nourishing school health Yokohama Tire Philippines, Inc. sees the children as an investment of the future and this is actually in the primacy of our Corporate Social Responsibility initiatives as we believe everything starts at the bottom unit of the society in which the children embodies. Complimentary to this assessment, YTPI launched a feeding program way back in 2012 and still continues to implement this with one school as a beneficiary in a year. Through the help of City Nutrition Action Office, YTPI identified 60 wasted and severely wasted pupils from Sitio Pader Elementary School in Brgy. Pulung Maragul, Angeles City. The program propelled sometime in September with the assistance of the school’s Parents and Teachers’ Organization and City Nutrition Office. Ran in 60 days during school week, Mondays through Fridays, the project is expected to be completed by December with mix of Kindergarten to Grade Six participants. With kits given away to these pupils that are packaged in a draw string bag, the kids could not even conceal their anticipation for what is inside. A set of bowl, cup and spoon and fork would be their utensils on eating their way to escape malnutrition. Morning meals are planned based on suggested food value that comes with a glass of milk to guarantee that Feeding Program hundred percent of the beneficiaries would recover back to normal status at the end of the program. Improvements on the nourishment of these children could have a greater impact later in life.

27 Scholarship Medical Mission

Scholarship: Preparing our students’ future Medical Missions: Giving access to healthcare and Financial assistance is a necessity for college students and medicine YTPI provides an opportunity to earn an education. For the past several years since its launch in 2009, With the average budget of P33, 652.00 ($716) per annum Yokohama Tire Philippines, Inc. has been providing health for each student along with stipend and book allowances, care to communities in the region with little to no access. YTPI was able to have 15 grants this year. The company seeking for a healthier future does A total of six students are currently in their not only confine within the premises of the fourth and fifth year at Don Honorio Ventura plant but also goes out to the society we Technological State University and Holy belong in. Outside the plant, the Angel University, both situated in Pam- company works with EastWest panga. Medical Healthcare, Inc., our official Health Maintenance Going extra mile, YTPI also schooled Organization (HMO) provider and two students at Tarlac State Univer- with barangay officials. sity and another two at Saint Louis University in Baguio, all are going Volunteers need not to be for their senior year apart for one sourced out from available who would take the ladder as a ju- resources as our people finds nior. deep desire to reach extra mile in providing assistance to make Our community relations has gone this mission possible. further this year as we continue our flight on helping determined scholars And just recently, we have of Mindanao. Added to this year’s roster outnumbered our target of 300 of universities is the Mindanao University of beneficiaries with 340 participants Science and Technology, a state university lo- appeared on site in Brgy. Cuayan of cated in Cagayan de Oro. Five students were grant- Angeles City, as first community to be ed the scholarship, four of which are taking up Electrical En- given of medical assistance for this year. The gineering and one for Mechanical. All are freshman except growing figure didn’t stop there as the second leg of the for one who is currently on his sophomore year. mission continued to Sta. Ines, Mabalacat with 311 residents sought for healthcare. One of the perks that these students will get is that they can get to work to the region’s largest firm as soon as they have The program does not only offer onsite consultations graduated, contributing to a brighter endeavors that all of but also goes with medicines prescribed by the doctors them may have in the future. presented therein. Even supplementary vitamins that the patients may require were also dispensed, easing the Everything considered, YTPI scholarship has been stretched burden of the patients about the costs. to a total of 42 grantees but unfortunately 12 of which were not able to maintain the required grade point average (GPA). In YTPI, doing more, helping more and extending ourselves just so the others could live better has become a corporate Currently, we have a total of 12 graduates since our schol- culture. arship program started in 2009 and four of them are now working here at Yokohama Tire Philippines, Inc. 28 Outreach Programs: Focusing on communities’ well-being

Bahay Pag-ibig (House of Munting Tahanan ng Cancer Warriors Holy Rosary Parish – 1Prayer) . Settled in San 2Nazareth (The Little 3Foundation. With the 4Pamaskong Handog. Fernando, a home is estab- House of Nazareth). Munting current population of 76 The parish in Angeles has lished twenty years ago for the Tahanan ng Nazareth is a in its Pampanga Chapter gathered its indigent abandoned elders. When at people with a total of 100 in home, we feel a deep root of facility for mentally at Lubao, Cancer Warriors population to enjoy giving back to the people who challenged people with Foundation is a Philippine have nurtured us, this is not Yokohama’s small special needs. Medicines based patient support program in celebration of life the case to the seniors here in and food were given away to organization for families Bahay Pag-ibig. Unfortunately, and Christmas along with the people they have brought 40 special individuals who of children with childhood grocery baskets. up have decided to give them are in the said institution in cancer. YTPI is with their away. And this Christmas, the Mabalacat. journey of fighting for people of YTPI just melt the children and adolescents hearts away of 60 seniors. with cancer. y t i n u m m o C r u O 29 2016& beyond C S R Report Committee

Board of Directors Members

Yasuhiro Kurokawa Allan Lavarias President and CEO VP / Quality and Technology Department Manager Jeffrey Policarpio Matsutaro Maeda Quality Assurance Section Manager EVP / Plant Operations Division Manager Jose Cansino, Jr Koji Watanabe Manufacturing Development Group Section Manager EVP / Plant Operations Division Manager Rommel Panergo Yoshiyuki Komoro Manufacturing 2 Department Manager VP / West Plant Project Leader Cynthia Valencia Hiroyuki Shioiri Manufacturing 2 Asst. Department Manager Director Albert John Tolentino Mixing Section Manager Juanito Arona Marilou Peniano VP / Asst. Plant Operations Division Manager Corporate Planning Department Manager Angelina Casasola Reynaldo Mandocdoc VP / CSR and Business Operations Department Manager Corporate Planning Asst. Department Manager Lorna Cervantes Accounting Section Manager Geraldine Bautista Cost Planning Section Manager Technical Working Group Egelberto Dolo Human Resource Management Section Manager Chair: Joanne Pangilinan Liza Arrieta Public Relations and General Services Section Manager Safety Management System Section Manager Reynante Legion Associate: Maylene Talagon Environmental Management Section Manager Public Relations and Community Relations Supervisor

Members: Mary Sharon San Juan Patrick Pineda Human Resource Management Senior Supervisor Public Relations and General Services Staff Bernadette Quan Chanelle Barrameda Labor Management Council / Distribution Assistant Tire Production System / Manufacturing Development Group Supervisor Liza Alfonso Mark Cris Trobada Company Nurse Tire Production System / Manufacturing Development Group Assistant Ashley Campos John Rey Santos Safety Officer Mixing Production Supervisor Marvin Lagmay Allan Jerryco Gatus Environmental Management Section Supervisor Financial Analyst Mary Jane Carlos Jr. Systems Engineer

Thank you. beyond Yokohama Tire Philippines, Inc. IE-5 Clark Freeport Zone, Philippines 2023

CSR and Business Operations +63-45-599-3603 +63-45-599-3613 / +63-2-584-4087 [email protected] www.ytpi.com