Economic Performance

Responsible Department

Each business location and department

Stance and Target

Why is “Economic Performance” a critical issue to be addressed?
Explanation of the reason and background

The Yokohama Rubber Group’s GD2020 Medium-term Management Plan was launched in FY2018.
The basic assumptions underpinning GD2020 are that global demand for tires will grow more rapidly than the rate of increase in the number of motor vehicles produced worldwide, but that competition in the tire market will intensify as tire manufacturers in emerging markets expand their production capacity. Faced with this business environment, Yokohama Rubber has identified three key issues that it needs to focus on: (1) Enhancing our product mix by concentrating resources on high-value-added products; (2) Ensuring that we maximize the benefits from already completed large-scale investment projects and acquisitions; (3) Strengthening our financial position.

Vision (attainment goal) / target

Our positioning for the GD2020 Medium-term Management Plan emphasizes “Being prepared for further growth in the 2020s by strengthening our business foundations through the redefining of Yokohama Rubber’s strengths and by implementing growth strategies for each of our businesses that contribute to the enhancement of a unique growth path for each business.”
Our financial targets for the year 2020 are to achieve sales revenue of 700 billion yen, operating income of 70 billion yen, and an operating profit margin of 10%. We are also aiming to achieve a debt/equity ratio (D/E ratio) of 0.6 and a return on equity (ROE) of 10% by the end of FY2020.

Quantitative targets for 2020

Sales revenue 700 billion yen
Operating income 70 billion yen
Operating margin 10%
ROE (net income) 10%
D/E ratio 0.6

Measures for vision achievement

The growth strategies for each of our business areas are outlined below. We will also be implementing a technology strategy and brand strategy that make effective use of our company’s strengths.

Move the screen to the left or right to see the table information

Consumer tires business strategy Expand our presence in the premium tire market
Commercial tires business strategy Make commercial tires a pillar of revenue driven by off-highway tires
MB operations business strategy Allocate resources on a priority basis to business fields of strength
To strengthen our business foundations, we will be focusing on five key areas: Corporate social responsibility (CSR), human resources strategy, corporate governance, risk management, and financial strategy. In regard to financial strategy, we will be utilizing the cash-flow generated through effective implementation of our growth strategies to strengthen our financial position (by reducing interest-bearing debt, etc.) while also providing appropriate returns to shareholders.
Medium-term Management Plan GD2020

Review of FY 2018 Activities

Distribution of economic value to stakeholders

Move the screen to the left or right to see the table information

  Distribution amount
(million yen)
Calculation method
Stakeholders FY 2018 FY 2017 FY 2016
Business partners and suppliers 260,734 260,685 250,606 Cost of sales + SG&A expenses (excluding personnel expenses)
Employees 52,948 52,370 52,230 Cost of sales + SG&A expenses (personnel expenses)
Shareholders 9,937 9,140 8,339 Dividends paid
Creditors 3,152 2,915 2,699 Interest paid
Government and administration 11,448 17,115 12,638 Corporate taxes, etc. paid
Society 22 110 21 Donations (entertainment expenses), etc. [High school and university laboratories]
Internal 9,928 8,490 10,112 Net income - dividend amount
Total 348,169 350,825 336,645  
  • The figure for “Creditors” and “Government and administration” are for Yokohama Rubber on a consolidated basis, while the other figures are on a non-consolidated basis.

Considerable financial assistance received from government

The amount of financial assistance in taxes and subsidies received from national and municipal governments was 106.9 million yen.