Yokohama outlines strategy to 2012

ERJ staff report (DS)

Tokyo - The Yokohama Rubber Co., Ltd., has outlined its policy for Phase II of the Grand Design 100. Phase II is the company's medium-range management plan covering the period from April 2009 until March 2012. Phase I of the plan is currently underway and will end in March 2009. The company will introduce phase III and then Phase IV which will bring the company to its 100th anniversary in 2017.

Yokohama said it would release details of the Phase II and specify some of its contents, including financial targets, in March 2009.

The policy for the three-year Phase II period has been defined as "Quality Growth". Given the current instability of the global financial system and rapid recession, said Yokohama, "it is indispensable for the company to be aggressive with flexibility and establish a corporate culture supporting lean and agile operations." Yokohama Rubber therefore believes it necessary to improve quality in terms of both operations and management. With "Quality Growth", the company makes efforts to strengthen its managerial foundation to prepare for another jump in Phase III (FY2013 - 2015).

In the Tire Group, it plans to improve the global presence of Yokohama brand, expand and improve sales networks in regions such as Europe and Latin America, and establish new manufacturing bases in BRIC countries. With respect to the establishment of new manufacturing bases, the company will employ a compact, integrated production platform that enables it to make flexible and quick investments.

In the Multiple Business Group, it will beef up production and sale of industrial materials, hoses and Hamatite (sealants and adhesives) in China and Europe, vigorously approach new business opportunities including adhesives for electronic materials and structural adhesives for automobiles, and push forward with the technological development that makes it possible to provide products characterized by their environmental performance, safety and comfort through highly profitable designing and manufacturing methods.

The Grand Design 100 is the medium-range management plan designed for Yokohama Rubber to become a "global company with a distinctive presence in terms of corporate value and market position" in the company's centenary in 2017. It sets three financial targets for FY2018: 1 trillion yen in net sales, 100 billion yen in operating income and 10% operating return on sales. Consisting of 4 phases, each of which lasts for 3 years, the Grand Design 100 determines a basic policy, business strategy and financial targets for each phase.

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Press release from Yokohama