CSR Report of YOKOHAMA TIRE CORPORATION

President’s Message

Advancement of Environmentally Friendly Management

Yokohama Tire Corporation (YTC) was established in 1969 in California, U.S.A. as a tire sales company and in 1992, it merged with Mohawk Rubber Company (currently, the Salem Plant, in Virginia) to become a tire production and sales company that exists today.The Salem Plant, our production base, acquired ISO9001 in November 1997 and ISO14001 in March 2007 and has maintained these standards. As relates to the environment, we have promoted activities for energy savings by introduction of LED lighting and reuse of waste heat and for reduction of industrial waste and

reduction of landfill ratios (zero emissions).

All oils combined in tires were replaced with an environmentally friendly type. In product development, we launched the YK580 Series, which offers better wear resistance and fuel-efficient by combining orange oil for passenger cars and these were released in September. For truck tires, seven patterns, including the Z ENVIRONMENT, specialized in environmental capacity, are certified as the “SMART WAY,” which are good at low roll over and low fuel-efficient determined by the EPA. On the other hand, as for the “YOKOHAMA Forever Forest” project, the Salem Plant carried out a third planting in May 2011, following the first planting in April 2009 and the second in April 2010. In December 2010, the California Head Office invited Mr. Akira Miyawaki, a plant ecologist, and carried out the first planting works, except for the plants.Through these activities, we are actively making efforts to contribute to the environment and society, aiming at being a global contributor company in compliance with ISO26000

Yasushi Tanaka

Status of management of chemical substances

We carry out corporate activities in compliance with TSCA (Toxic Substance Control Act) of the EPA, U.S.A. If we introduce a new chemical substance, which we have not used before, into the plant, we use the mechanism in which process experts in the company shall approve.

Noise, vibration and odor

In 2011, we received three complaints about noises from neighbors. As countermeasures, YTC conducts self-control by checking the noise monitoring device installed at important points of the premises every day and setting internal standards.We discovered omission of a report of VOC (volatile organic compounds) by an environmental internal audit in March 2011, and we voluntarily reported to the relevant authorities to carry out an appropriate response.It was proved in October 2011 that Zn concentrations in wastewater of the plant exceeded the prescribed value. We discovered the cause in the plant and took actions and have complied with the prescribed value since that time.

Business activities:

Total site area:

Number of employees:

Location:

Location of plant:

Production and sale of automotive tires

422,000 m2

1,287 (as of December, 2011)

601 South Acacia Avenue, Fullerton, CA 92831, U.S.A.

1500 Indiana Street, Salem, VA 24153, U.S.A.

Neil Dalton, Director of Environment Health and Safety, Environment Health and Safety Dept.Tel: +1-540-375-8209 Fax: +1-540-375-0226e-mail: Neil.Dalton@yokohamatire.com

Contact for consultation and complaints:

Environmental Management MissionYTC ENVIRONMENTAL POLICY

(1) We respect The Yokohama Rubber Co., Ltd. Environmental “GD100” and make efforts toward environmental problems as business operations.

(2) We promote problem resolutions technically and economically by strengthening the environmental management system and carrying out prevention of pollution through continued improvements.

(3) We comply with the applied legal requirements and other agreed upon environmental requirements.

(4) We make efforts to maintain the natural world through reduction of scrap and reuse contributing to maintaining recycling activities and a recycling society, by practicing pollution prevention.

(5) We carry out global warming prevention activities by energy savings/improvement of energy efficiency/responsible use of energy, including renewable energy through operations.

(6) We provide employees with information, education and training related to the environment and we promote contributions to practical environmental welfare assistance to our stakeholders.

(7) We make efforts to continue improvement of our business process, products and activities. We review and monitor every year the environmental targets, which are set out in the environmental management system, and their progress.

Environmental data

Category FY2008 FY2009 FY2010 FY2011

Waste emissions (t) 2820.0 2956.0 3518.6 4133.9

Proportion sent to landfill (%) 49.0 41.7 46.0 33.4

Energy use(oil equivalent: kl)

Electric power 21,463 20,747 21,635 22,178

Fuel 11,348 11,232 11,840 11,705

Total 32,811 31,979 33,475 33,882

Greenhouse gas emissions (1,000t-CO2) 68.6 66.8 70.0 70.9

Water use (1,000m3) 189 171 196 198

* FY: January to December* Greenhouse gas emissions were calculated based on the Calculation and Reporting Manual for Greenhouse Gas

Emissions jointly published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry, Japan.

Stakeholder Communication

Regional Activities in 2011[1] Planting Activities in Forever Forest ProjectMay 6, Forever Forest Project: The Salem Plant carried out a third planting in May 2011, following the first in April 2009 and the second in April 2010.The California Head Office carried out a first planting in December 2010 and the second planting in December 7, 2011.

[2] Volunteer ActivitiesApril 9, Clean Valley Day: We participated as employees of YTC in the cleanup activities of the road in front of the plant (Indiana Street, Salem).

October 1, Fall Waterway Cleanup: We participated as employees of YTC in the cleanup of the Roanoke River.Stakeholder Communication

Relationship with local societies

Safe and Healthy Workplace Environment

YTC recognizes it is the responsibility of the company to provide employees with a workplace having a safe and healthy environment and establishes as one of the most important tasks elimination of occupational accidents. YTC also regards the safety and health of employees as important not only within working hours but also during off duty hours, and we promote plant operations, considering safety, health and fire prevention, etc., in compliance with State and Federal regulations.

Education and training of employees

We strengthen education and training of new employees and also conduct follow-ups. We have continued to provide safety training for all employees.

The Salem Plant has “Industrial Rescue Team” and also prepared a system for medical emergency rescue and response to the occurrence of fire and accidents. We also regularly conduct fire evacuation drills.

Health and safety policy Responses in case of disaster

Stakeholder Communication

August 3 Open House:For the purpose of improving communications, employees of the plant and their families are invited to the plant and we conducted tire education (Tire 101) and a plant visit for those who requested and after providing light meals, participants watched a Salem Red Sox baseball game, the local team.

[5] Results of acceptance of factory tourMarch 15Roanoke Valley Christian High School: 75 students

April 11Salem High School: 36 students

May 21, Local Colors:Japanese representatives participated in the foreign countries introduction event, which is held in Roanoke City every year.

May 18 and June 1, Apple Ridge Farm Activity:For the purpose of improving communication abilities, outdoor training of members selected by the plant supervisor was held.

[3] Results of fund raising and donationDonation to the Great East Japan Earthquake (Fullerton: $1,904, Salem: $8,622, Online: $4,335, Total $14,861)Apple Ridge Farm (support for underprivileged children): $10,000United Way (support for the fields of education, family, elderly and health, etc. in Roanoke Area); Company: $15,000, Employees: $87,148.75, Total: $102,148.75Salem City (donation to the construction of Dog Park at the place adjacent to the plant) $5,000Roanoke Symphony (support for the local orchestra playing in the region) $5,000

[4] Holding of and participation in local exchange eventsApril 26 ~29 Ride & Drive:Mainly with participation of dealers, to have them actually feel the differences in tires by driving and offer a deeper understanding in manufacturing of tires by tire education (Tire 101) and plant visits.