The Yokohama Rubber Co., Ltd. Business Report FY2011

Business Highlights

-FY2011 covers the period for nine months from April 1 through December 31, 2011, because the Company changed the month for ending the business year from March to December.

Financial Overview

(in millions of JPY)
Dec. 2011)
Mar. 2011)
Rate of
Sales 465,133 519,742 - -
Operating income 26,290 29,490 - -
Ordinary income 20,717 23,356 - -
Current net income 11,618 13,923 - -
Tire Operations
Sales 379,220 413,372 - -Sales of OEM tires were slow in Japan in the aftermath of the great earthquake. Sales of replacement tires, however, were strong in Japan. Overseas business was stable, especially in Europe, the Middle East, and Asia.
Operating income 23,365 24,952 - -


- The Company announced that it has begun delivery of its S73 BluEarth tires developed based on its new eco tire BluEarth concept for installation as original equipment (OE) on Toyota's new compact hybrid car Aqua. (From a press release on December 27, 2011)
- The Company announced that its Advan dB tires (205/60R16) are installed as original equipment on the new Prius α hybrid released by Toyota Motor Corporation. (From an article in the Nikkan Jidosha Shimbun on June 11, 2011)

- The Company announced announced that it has begun delivery of its BluEarth A34 tires as original equipment (OE) on Daihatsu's new light vehicle Mira e:S. (From a press release on November 1, 2011)

- The Company announced that its fuel-efficient tire was chosen for installation on the partially remodeled Mazda Demio compact vehicle, which was released in June. (From an article in the Nikkan Jidosha Shimbun on August 25, 2011)

- The Company announced that its ADVAN Sport V105 tires for high-powered cars have been selected as original equipment for Mercedes-Benz SLK-class two-seater roadster models produced by Daimler AG. (From a press release on May 30, 2011)
- The Company announced announced that its ADVAN Sport V105 tires for high-powered cars have been selected as original equipment for Mercedes-Benz CLS-class premium luxury 4-door coupe models produced by Daimler AG. (From a press release on May 30, 2011)
- The Company announced that its S. drive AS01 high-performance tire for overseas markets has been approved as original equipment for the Smart Fortwo produced by Daimler-Smart of Germany. (From an article in the Nikkan Jidosha Shimbun on July 25, 2011)

Business Plan

- In December 2011, the Company started to manufacture tires in Russia, becoming the first Japanese tire supplier to launch production in the country. The plant will initially have the capacity to manufacture 700,000 tires a year, which is expected to increase to 1.4 million tires eventually.  

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Outlook for FY2011

(in millions of JPY)
  FY2012 FY2013 FY2014
Sales 5,750 5,950 6,300
Operating income 400 500 600

Tire Production Capacity (Number of tires)

(unit: ten thousand tires)
  FY2012 FY2013 FY2014
Mie (Truck&Bus, Light Truck) 590 590 590
Mishima (Passenger) 1,390 1,390 1,390
Shinshiro (Passenger) 1,410 1,410 1,410
Shinshiro Minami (Passenger) 280 280 280
Japan Total 3,670 3,670 3,670
U.S.A (Passenger) 620 620 620
U.S.A (Truck&Bus) 58 60 60
Philippines (Passenger) 700 800 1,000
China (Passenger) 510 510 650
China (Truck&Bus) 34 34 34
Thailand (Passenger, Light Truck) 400 400 400
Thailand (Truck & Bus) 35 35 40
Russia 70 140 160
Overseas Total 2,427 2,599 2,964
Total 6,097 6,269 6,634


R&D Expenditure

(in millions of JPY)
  FY2011 FY2010 FY2009
Overall 9,307  12,747 13,280
Research Headquarters 948  1,316 1,517
Tire Operations 5,909  7,946 7,944

- The Company announced it will establish an R&D operation for tires in China as early as this summer.  This will be the company's first, full-scale R&D function outside Japan.  In addition to accelerating development of products targeting the China market, it aims to enhance the function to evaluate materials procurable in China so that it should raise the local content ratio.  The company plans to further increase its market shares in the fast-growing China market by pursuing localization of its development operation as well as its production and sales operations. (From an article in the Nikkan Jidosha Shimbun on April 25, 2011)

R&D Structure

facility Location
RADIC (Research & Development Integrated Center) Kanagawa, Japan
D-PARC (Daigo Proving-Ground and Research Center) Ibaraki, Japan
T*MARY (Takasu Motoring and Researching Yard) Hokkaido, Japan
Tire Test Center of Asia Rayong, Thailand

Investment Activities

Capital Investment

(in millions of JPY)
  FY2011 FY2010 FY2009
Overall 22,400  24,900 17,500
Tire business 19,500  22,200 14,800

-The Company invested 5.2 billion yen in upgrading its domestic production facilities, improving productivity, and raise its quality levels, as it releases new products, including large and high-performance tires.   

- Major investment activities outside Japan included a 4.3 billion yen project at L.L.C. Yokohama R.P.Z. in Russia to expand facilities to make tires for passenger vehicles and light-duty trucks.

Investments Outside Japan

- The Company will begin production of passenger car tires in the state of Lipetsk, Russia by the end of 2011, the first production of tires in Russia by Japanese tire makers. The company is investing about 14.8 billion yen, planning to build production capacity of one million tires in 2012. (From an article in the Nikkan Jidosha Shimbun on August 18, 2011)

- The Company announced that Yokohama Tire Philippines, Inc. (YTPI), a passenger tire manufacturing and sales subsidiary, held the groundbreaking ceremony for the construction of its new tire plant. In January this year, the company announced the plan to expand the annual production capacity of the YTPI by 2.4 times to 17 million tires from the current 7 million by 2017. The company will make an additional investment worthy of 50 billion yen by 2017 to expand the total plant area to 460,000 square meters and achieve a total employment of a 5,000 human workforce. (From a press release on May 30, 2011)

Planned Capital Investments (Tire business)

(As of Dec. 31, 2011)

Business Expected Investment (millions of yen) Start Planned completion Increased
capacity after completion
The Company
Hiratsuka Plant
(Kanagawa, Japan)
Manufacturing 3,641 Apr.
Mie Plant
(Mie, Japan)
Manufacturing 3,316 Apr.
Mishima Plant
(Shizuoka, Japan)
Manufacturing 2,740 Apr.
Shinshiro Plant
(Aichi, Japan)
Manufacturing 7,833 Apr.
Onomichi Plant
(Hiroshima, Japan)
Manufacturing 1,506 Apr.
Yokohama Tire Manufacturing Thailand
Headquarters and Plant
(Rayong, Thailand)
Manufacturing and other business 4,604 Apr.
L.L.C. Yokohama R.P.Z.
Headquarters and Plant
(Lipetsk, Russia)
Manufacturing and other business 13,650 Jul.
1.4 million passenger car tires
Yokohama Tire Philippines, Inc.
Clark Special Economic Zone, Philippines)
Manufacturing and other business 19,700 Feb.
3.0 million passenger car tires