¥650.2 ¥59.3 ¥117.8 ¥650.2 *Sales Revenue – (Cost of Sales + Selling, General and Administrative Expenses)

YOKOHAMA AT A GLANCE

Aircraft fixtures and High-pressure hoses Others Others components ATG ATG ¥50.2 Others ¥9.0 ¥1.1 ¥14.1 ¥68.7 ¥8.5 ¥110.1

Conveyor belts, antiseismic products, MB MB marine hoses, ¥117.8 ¥7.4 marine fenders MB Sales ¥29.3 Sales by Sales Revenue Business Profit* by Product Category Customer Location (Billions of yen) (Billions of yen) (Billions of yen) (Billions of yen) ¥650.2 ¥59.3 ¥117.8 ¥650.2 *Sales revenue – (cost of sales + selling, general and administrative expenses)

Japan ¥273.0 Tires Tires Hamatite-brand sealants and adhesives Asia North America ¥454.8 ¥42.3 ¥24.3 ¥93.2 ¥174.0

Products and Companies by Business Segment As of December 31, 2018 Tires MB (Multiple Business)

Principal products Manufacturing (Thailand) Co., Ltd. (Thailand); Yokohama Tyre Vietnam Principal products Products-Hangzhou Co., Ltd. (China); SC Kingflex Corporation Tires for passenger cars and light trucks; for trucks and buses; Inc. (Vietnam); Yokohama India Pvt. Ltd. (India) High-pressure hoses, conveyor belts, marine hoses and (Taiwan); PT Yokohama Industrial Products Manufacturing Indonesia for construction and mining equipment; and for motor sports and Principal sales and marketing support companies pneumatic marine fenders, antiseismic products and roadway (Indonesia); Yokohama Rubber (Thailand) Co., Ltd. (Thailand) tire tubes, aluminum alloy wheels, and other peripheral products Japan joints, Hamatite-brand sealants and adhesives, aircraft fixtures Principal sales and marketing support companies Principal production companies Yokohama Tire Japan Co., Ltd. and components Japan Japan Overseas Principal production companies Yokohama Industrial Products Japan Co., Ltd. Yokohama Rubber Co., Ltd.; Yokohama Tire Retread Co., Ltd.; Yokohama Tire Corporation (United States); Yokohama Tire (Canada) Inc. Japan Overseas Kameyama Bead Co., Ltd. (Canada); Yokohama Tire Mexico S. de R.L. de C.V. (Mexico); Yokohama Rubber Co., Ltd. Yokohama Aerospace America, Inc. (United States); Yokohama Overseas Yokohama HPT Ltd. (United Kingdom); Yokohama Europe GmbH Overseas Industries Americas Ohio Inc. (United States); Yokohama Industrial Yokohama Tire Manufacturing Virginia LLC. (United States); LLC (Germany); Yokohama Russia L.L.C. (Russia); Yokohama Tire Sales Yokohama Industries Americas Inc. (United States); Yokohama Products Sales-Shanghai Co., Ltd. (China); Yokohama Industrial Yokohama R.P.Z. (Russia); Hangzhou Yokohama Tire Co., Ltd. (Shanghai) Co., Ltd. (China); Yokohama Tire Sales Philippines, Inc. Industries Americas de Mexico, S. de R.L. de C.V. (Mexico); Yokohama Products Asia-Pacific Pte. Ltd. (Singapore) (China);Yokohama Tire Philippines, Inc. (Philippines); Yokohama Tire (Philippines); Yokohama Tire Sales (Thailand) Co., Ltd. (Thailand) Industrial Products Italy S.r.l. (Italy); Yokohama Industrial Employees: 4,008 Employees: 18,263

ATG (Alliance Tire Group) Other operations

Principal products Overseas Golf equipment and services for Yokohama Rubber and its Y.T. Rubber Co., Ltd. (Thailand); Yokohama Rubber (China) Co., Ltd. subsidiaries and affiliates (China); Yokohama Rubber Singapore Pte. Ltd. (Singapore) Principal companies Employees: 1,246 Japan PRGR Co., Ltd.; Hamagomu Fudousan Co., Ltd.; Acty Co., Ltd.; Yokohamagomu Finance Co., Ltd.; Yokohama Mold Co., Ltd.

Principal products Principal sales, marketing, and other support companies Tires for agricultural, industrial, construction, and forestry Alliance Tire Europe B.V. (Netherlands); Alliance Tire Americas Inc. machinery (United States); Alliance Tire Group K.K. (Japan) Principal production companies Employees: 2,757 ATC Tires Private Ltd. (India); Alliance Tire Company Ltd. (Israel)

12 13 YOKOHAMA AT A GLANCE

Aircraft fixtures and High-pressure hoses Others Others components ATG ATG ¥50.2 Others ¥9.0 ¥1.1 ¥14.1 ¥68.7 ¥8.5 ¥110.1

Japan ¥273.0 Tires Tires Hamatite-brand sealants and adhesives Asia North America ¥454.8 ¥42.3 ¥24.3 ¥93.2 ¥174.0

Products and Companies by Business Segment As of December 31, 2018 Tires MB (Multiple Business)

ATG (Alliance Tire Group) Other operations

12 13 RESULTS AND TRENDS BY BUSINESS SEGMENT TIRES MB (Multiple Business)

Sales Revenue: Business Profit: Sales Revenue: Business Profit:

¥454.8 billion ¥42.3 billion ¥117.8 billion ¥7.4 billion

(Billions of yen) (Billions of yen) (Billions of yen) (Billions of yen)

120.0 117.8 114.1 459.9 454.8 455.0

41.9 42.3 7.8 8.0 38.0 7.4

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 (projection) (projection) (projection) (projection)

■ Business results in 2018 replacement tires outside Japan on account of adverse ■ Business results in 2018 ■ Aircraft fixtures and components Business profit increased 1.0%, to ¥42.3 billion, on a 1.1% weather trends, currency instability in some emerging Business profit declined 4.6%, to ¥7.4 billion, on a 3.2% Business declined in aircraft fixtures and components, decline in sales revenue, to ¥454.8 billion. The Tires segment economies, and the negative effect on demand of concerns increase in sales revenue, to ¥117.8 billion. The MB segment reflecting weak demand in the commercial sector and a cyclical thus accounted for 71.4% of total business profit and for 69.9% about US-Chinese trade frictions. thus accounted for 12.5% of total business profit and for 18.1% downturn in government demand. of total sales revenue. of total sales revenue. ■ Full-year projections for 2019 ■ Full-year projections for 2019 ■ Original equipment Management projects that business profit in Yokohama’s Tires ■ High-pressure hoses Management projects that business profit in the MB segment Sales revenue declined in original equipment business. segment will decline 10.1% in 2019, to ¥38.0 billion, on a slight Sales revenue increased in high-pressure hoses, led by will increase 8.1% in 2019, to ¥8.0 billion, on a 1.9% increase Japanese business in this category suffered from product upturn in sales revenue, to ¥455.0 billion. continuing vigor in Japan and overseas in hoses for in sales revenue, to ¥120.0 billion. changeovers for multiple vehicle models equipped with construction equipment and industrial machines and in Yokohama tires and from production adjustments at overseas markets for automotive hoses. automakers in connection with natural disasters. Overseas business in original equipment suffered from production ■ Industrial materials adjustments by automakers in China necessitated by weak Yokohama also posted growth in sales revenue in industrial sales. Yokohama won new fitments during the year on materials, led by continuing strong momentum in conveyor premium-grade passenger cars in Japan and overseas. belts in Japan and overseas.

■ Replacement tires ■ Hamatite-brand sealants and adhesives Yokohama posted sales growth in the Japanese market for Sales revenue declined in Hamatite sealants and adhesives, Hose from Yokohama for next-generation ECOTEX conveyor belt—energy-saving air-conditioning coolant—factory materials handling replacement tires. Business there benefited from strong sales principally on account of weak demand for construction equipment on Jeep® Wrangler and in winter tires, led by the iceGUARD 6 studless snow tire. sealants in Japan. Jeep® Compass Japanese business in replacement tires also benefited from vigorous promotion of the premium-grade tires of Yokohama’s global flagship brand, ADVAN, and the fuel-saving tires of the Yokohama’s ADVAN Sport V105— iceGUARD 6—unprecedented performance factory equipment on several models in studless snow tires company’s BluEarth series. Business declined, however, in of premium-grade cars

14 15 RESULTS AND TRENDS BY BUSINESS SEGMENT TIRES MB (Multiple Business)

Sales Revenue: Business Profit: Sales Revenue: Business Profit:

¥454.8 billion ¥42.3 billion ¥117.8 billion ¥7.4 billion

(Billions of yen) (Billions of yen) (Billions of yen) (Billions of yen)

120.0 117.8 114.1 459.9 454.8 455.0

41.9 42.3 7.8 8.0 38.0 7.4

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 (projection) (projection) (projection) (projection)

14 15 ATG Golf Equipment Sales Revenue: Business Profit:

Yokohama markets golf equipment under the PRGR Eleven years of the Yokohama Tire Golf billion billion brand in Japan and in China, the Republic of Korea, Tournament PRGR Ladies Cup ¥68.7 ¥8.5 and Southeast Asian nations. The 11th Yokohama Tire Golf Tournament PRGR Ladies Cup took place in March 2018. That tournament (Billions of yen) (Billions of yen) 10.4 Highlights of 2018 has contributed to broadening the appeal of professional

76.0 golf and to raising the profiles of the Yokohama Tire

68.7 8.5 Wins on the US PGA tour and on the Japanese tour name and the PRGR brand. 63.4 7.6 for a Yokohama-sponsored pro The Team PRGR pro Satoshi Kodaira won the RBC Heritage, on the US PGA tour, in April 2018. That made him the fifth Japanese golfer to capture a victory on the US men’s tour. Kodaira also won the Golf Nippon Series JT Cup 2018. That tournament took place in December as the concluding event in the year’s series. The win was Kodaira’s third at a Japanese “major,” following his victories at the Japan Golf Tour Championship in 2013 and at the Japan Open Golf Championship in 2015. 2017 2018 2019 2017 2018 2019 Kodaira thus became the fourth-youngest golfer in In action at PRGR Ladies Cup: PRGR-sponsored Erina Hara (projection) (projection) history to capture three “majors” on the Japanese tour.

The ATG segment comprises the operations of Alliance Tire Group, which Yokohama acquired in July 2016 and which produces and markets tires for agricultural and forestry machinery and for other off-highway applications.

■ Business results in 2018 Business profit increased 11.8%, to ¥8.5 billion, on an 8.3% Satoshi Kodaira—winner of 2018 RBC Heritage increase in sales revenue, to ¥68.7 billion. The ATG segment thus accounted for 14.3% of total business profit and for 10.6% of total sales revenue. Launches of new-concept and upgraded clubs as the Q series and RS series ■ Off-highway tires Yokohama introduced the Q series in March 2018 as a Sales revenue in the ATG segment increased as business new approach to clubs for amateur golfers. The Q series expanded in replacement tires despite adverse weather clubs are especially good at lifting balls out of bad lies. patterns in Europe and as business expanded in original They help apply spin to the ball and are good all-around equipment tires, led by gains in North America and Europe. equipment for aiming aggressively at the green. In July 2018, Yokohama remodeled its RS series of clubs for ■ Full-year projections for 2019 serious amateurs. The new RS clubs offer increased Management projects that business profit in the ATG segment range and improved handling. Both of the new series will increase 22.9% in 2019, to ¥10.4 billion, on a 10.6% have sold well since their launches. 324FarmPRO—ATG offering increase in sales revenue, to ¥76.0 billion. for agricultural machinery

New-concept and upgraded clubs—Q series Q18 and the RS driver

16 17 ATG Golf Equipment Sales Revenue: Business Profit:

76.0 golf and to raising the profiles of the Yokohama Tire

New-concept and upgraded clubs—Q series Q18 and the RS driver

16 17