New medium-term management plan: Yokohama Transformation 2023 (YX2023)

The Yokohama Rubber Group has launched its new medium-term management plan, Yokohama Transformation 2023 (YX2023), which will guide the group during the three years from fiscal 2021 through fiscal 2023.

Brief Review of our Previous Plan GD2020

Under the previous medium-term management plan, Grand Design 2020 (GD2020) from fiscal 2018 through fiscal 2020, we implemented growth strategies that focused on refining the core strengths in each of our business segments.

Consumer Tire Business

We pursued four strategies to further expand our presence in the premium tire markets.

Premium Tire Strategy

Succeeded in expanding use of our highinch, high-performance tires as original equipment for 13 premium car models, such as Porsche’s Cayenne and BMW’s X3.


Winter Tire Strategy

Saw us launch three new tires, including the all-season BluEarth-4S AW21 and the iceGUARD iG53, a studless tire for the North American market.


Hobby Tire Strategy

Sought to meet the needs of a wide range of car enthusiasts through the launch of six new tires, including the GEOLANDAR XAT for SUVs and pickup trucks.


Communications Strategy

Focused on leveraging digital technologies to strengthen direct marketing and increase communication with end users. These efforts have enhanced our market presence.

Hoonigan Gymkhana 2020
Hoonigan Gymkhana 2020
Hoonigan Gymkhana 2020
Hoonigan Gymkhana 2020
Hoonigan Gymkhana 2020

Commercial Tire Business

We sought to “make commercial tires as a pillar of revenue in our second century” by strengthening our OHT and TBR businesses.

OHT business

The strong growth achieved by ATG, which we acquired in 2016, has boosted our commercial tire business’ share of companywide tire sales above the level we envisioned at the start of GD2020.

TBR business

In 2018 we posted an impairment loss on our US plant in Mississippi, which started production in 2015. However, our efforts to resolve equipment and personnel issues have improved the plant’s supply capability, and we are now focused on expanding sales of its truck and bus tires.

TBR business

Multiple Business Segment

Our efforts focused on allocating resources on a priority basis to business fields of strength. This included strengthening the segment’s automotive parts and marine products businesses. The automotive parts business succeeded in expanding shipment of its hoses in North America, while the marine products business’ successes included delivering the world’s largest floating pneumatic fenders.

GD2020 Results

We fell short of GD2020’s goals of ¥700 billion in sales revenue and ¥70 billion in business profit. Of course, the shortfalls also reflect the impact of the economic slowdown caused by the COVID-19 pandemic that swept across the planet in 2020.

However, we did succeed in improving our financial position. We greatly reduced the interest-bearing debt we took over when acquiring ATG in 2016 from ¥335.9 billion to ¥207.8 billion at the end of fiscal 2020. As a result, we lowered our debt/equity ratio to 0.5, lower than GD2020’s target of 0.6. We also generated operating cash flow totaling ¥236.5 billion over the three years of GD2020, exceeding the targeted ¥200 billion, and we provided shareholders with stable returns, including a dividend payout ratio in 2020 of 39.0%, above our target of 30%.

GD2020 Results

Target Result
Sales revenue ¥700 billion ¥570.6 billion
Business profit ¥70 billion ¥36.8 billion
Business profit margin 10.00% 6.40%
D/E ratio 0.6 0.5
ROE 10% 6.3%
Operating CF(3-year total) ¥200 billion ¥236.5 billion
Capital investment Within depreciation (excluding strategic investments) Within depreciation (excluding strategic investments)
Dividend payout ratio 30% 39%
■Cash flow
Cash flow
■Interest-bearing debt, total equity & D/E ratio
Interest-bearing debt, total equity & D/E ratio