GD2020 Medium-Term Management Plan

We at Yokohama Rubber have launched a new medium-term management plan as Grand Design 2020 (GD2020). The plan covers the three years from 2018 to 2020.

GD100 in Review

Our GD100 medium-term management plan spanned the period from 2006 to 2017 and comprised four three-year phases. We achieved solid growth overall under GD100, led by rapid progress in globalization.

GD100 Results

Progress in Globalization
Our progress in globalizing our operations was an especially important result of GD100. That has included expanding our global networks of platforms for manufacturing, for marketing, and for research and development. It also included expanding our original equipment business outside Japan. Our globalization has also included raising the visibility of the Yokohama brand worldwide. Our increased visibility has benefited from the partnership agreement that we concluded in 2015 with the English Premier League’s Chelsea Football Club.
Advances in environmental technologies
Another result of GD100 was progress in infusing our product portfolio with environmentally attentive technologies. Last year, the percentage of our products that feature environmentally friendly technologies reached 100%. And we began offering our low-rolling-resistance tires globally in the original equipment market and aftermarket.
Expanded business portfolio
A third result of GD100 was progress in strengthening our business portfolio. That included acquiring Alliance Tire Group B.V., a manufacturer of tires for agricultural and forestry machinery, in 2016. It also included acquiring Aichi Tire Industry Co., Ltd., a manufacturer of tires for industrial equipment, in 2017. Those moves have helped increase the percentage of commercial tires in our total sales.

Financial Results

Our net sales increased 48% and our operating income ¥30 billion under GD100, and our operating profit margin rose three points. Meanwhile, the overseas weighting has increased in each principal indicator. We fell short, however, of our overall targets for GD100. Our net sales in two thousand seventeen totaled ¥668.0 billion, and our operating income totaled ¥51.9 billion. Those totals were short of our GD100 targets of ¥770 billion for net sales and ¥80 billion for operating income. Earnings growth was sluggish in GD100 Phase IV (2015–2017) on account of escalating price competition and a surge in capital spending and corporate acquisitions, and our interest-bearing debt increased.

■2017/2005 comparison: Fiscal performance

2005 2017
Net sales ¥451.9 billion ¥668.0 billion +48%
Operating income ¥21.9 billion ¥51.9 billion +¥30 billion
Operating profit margin 4.8% 7.8% +3.0 points

■2017/2005 comparison: Overseas weightings

2005 2017
Net sales 23% 56% +33 points
Production capacity (tires) 21% 60% +39 points
Original equipment sales (tires) 0.3% 50% +50 points

■Fiscal performance under GD100 by phase

Fiscal performance under GD100 by phase

■Net Sales, Operating Income and Operating Return on Sales

Net Sales, Operating Income and Operating Return on Sales

■Total net assets, Interest-Bearing Debt and Debt/Equity Ratio

Total net assets, Interest-Bearing Debt and Debt/Equity Ratio


  • Improve product mix by concentrating on value-added products
  • Secure sound returns on the capital spending and acquisitions of Phase IV
  • Strengthen our financial position