An easy-to-understand introduction to Yokohama Rubber for individual investors.

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.

Meaning of YX2023

“Y” standing for YOKOHAMA and “X” for transformation, as we plan to pursue “Exploitation” and “Exploration” to achieve a transformation of the YOKOHAMA Group over this three-year period. During YOKOHAMA Transformation 2023, we will dig deeper into the core strengths of our existing businesses, while also searching for new growth opportunities by responding to the dynamic once-in-a hundred years transformation taking place in our main market.

Meaning of YX2023

YX2023 Growth Strategies

Consumer tires

Raise High Value-Added Tire Sales Ratio

We aim to expand sales of our high-performance consumer tires, namely the ADVAN and GEOLANDAR brands as well as WINTER tires, and raise their share of our total tire sales from the current 40% to more than 50%.

Commercial tires

Respond to Market Changes and Accelerate Growth of Business

We will be "Searching " for opportunities to create new value by capturing major market changes, such as the trends toward CASE, MaaS, and DX. We also plan to further accelerate growth of OHT business and TBR business.

MB operations

Shift Portfolio to Products with Highly Stable Earnings and Strong Growth Potential

We plan to solidify the MB segment’s ability to generate stable earnings while also enhancing its growth potential by concentrating resources in the segment’s two core product areas—hoses & couplings and industrial materials. In the aerospace products business, which continues to face a harsh environment, we will carry out some structural reforms targeted at bringing the business more in line with today’s market.

Strengthen our management foundation

Human Resources Strategy and ESG Initiatives

Our human resources strategy is focusing on personnel system reforms that will strengthen management at all levels, create a strong organization that can respond quickly to changes in our business environment, and promote work style reforms. Our ESG initiatives, which are conducted in line with our CSR slogan "Caring for the Future," are focused on providing environment-friendly products, achieving carbon neutrality, and support activities rooted in our local communities. In addition, we aim to further strengthen corporate governance and create a safe, secure, and comfortable workplace.

Financial Targets (by 2023)

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Sales revenue ¥700 billion
Operating profit and operating profit margin ¥70 billion, 10%
Debt/equity ratio 0.4
Return on equity 10%
Return on invested capital 7%
Operating cash flow Three-year total of ¥250 billion
Capital investment Within scope of depreciation (excluding strategic investments)