2015 Sustainability Report

Sharing with you the 7th issue of our sustainablity report, Yokohama Tire Philippines, Inc. presents our initiatives on being a responsible organization to our stakeholders.

In this report, we highlight our 2015 activities that focus on social and environmental impacts that would improve our operating efficiency, which are detailed as you go along each page.

We aspire to contribute to the total wellness of the society as well as to the environment where our plant operates. Beyond business, we feel rewarded and fulfilled each time our publics’ advancement evolved to something that we have envisioned.

This annual sustainability report merely covers the operation here in the country and not for the entire corporation of Yokohama Rubber Company. Our first priority in making a sustainable community is the region where we operate, and as a result, most of our corporate social responsibility activities are being executed in the said area.

This report was prepared in accordance to Global Reporting Initiative’s G3 Reporting Guidelines to standardize the organization’s disclosure on material information. Likewise, data presented herein covers the calendar year of 2015, from January to December. Figures and statistics declared were considered with utmost accuracy. Mentioned names of people in position within the organization are based on actual reporting, changes after the production may be covered on the next issue.

We hope it inspires you to become a responsible stakeholder as we all should be.

Should you require any further information, please contact the undersigned:

Angelina C. CasasolaVP, CSR & Business Operations DepartmentE: angelina.casasola@ytpi.comT: +63 45 599-3603F: +63 45 599-3613

Grow. Sustain.

Care.

This report details how Yokohama Tire Philippines, Inc. grows its business and making it a sustainable one by taking care of its people, its environment and its community. YTPI does not operate on profitability alone but also contemplate

on triple bottom line: social, environmental and financial.

CONTENTS

6 Who We Are

4 From the President

8 Tires You Can Trust

12 Our Performance

14 Our People

20 Our Environment

26 Our Community

30 2016 & Beyond

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From the President

Giving back to the community- I think this is our mission.

We have to continue making profit, to continue our CSR programs, to support our society.

We have stood 2015 and I am pleased to announce that it was one of a great year, not just in terms of business but also goes out for our sustainability performance.

The past year is the first of three stage GD100 Phase IV, our midterm policy until 2017. This policy frameworks continuous improvement in all strategies: capability build-up, product and skill development and profitability. Alongside, YTPI arranged six fundamental areas: safety, environment, quality, delivery, cost and human.

In a related development, YTPI engaged into safety programs such as Forklift Competition and Night Earthquake Drill which resulted to a hundred percent

To our fellowstakeholders,

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compliance to risk assessment. In fact, in bringing out our fire brigade ‘Young Guns’ in a regional competition facilitated by the Bureau of Fire Protection, we took home the second place award.

Our environmental management programs carried on as YTPI marks the 8th anniversary of Forever Forest with 4, 735 seedlings planted. Further, chemical spill training and clean-up drive were also brought out.

But the key focus of this report is our commitment to help improve the lives of those who need us most, further strengthened our determination to serve.

As we have been to a series of corporate social responsibility programs during the year, particularly the feeding program and medical missions. I was able to go out with the team and reached out to our communities. I have witnessed what the current real situations are and identified the needs of the society we belonged in. It made me reflect to what the real duty is of Yokohama Tire Philippines. Giving back to the community, I think this is our mission.

In fulfilling our corporate mission, we have to achieve our target production, quality and practice muda dori (scrap reduction). We have to continue making profit so we can continue our CSR programs. There is an enormous need to support our society, to rise above poverty. If there is no profit, we can’t continue doing such activities, we cannot help.

We need to work harder, be ahead and aim together toward one goal, and that is to be YRC’s number 1 plant. I have the confidence that we can do it in three years’ time.

Thank you all for your support and understanding, we are able to continue our business. I appreciate you. As a pledge, we will continue and strengthen carrying out our CSR activities.

Let us all take this journey as we enter the year of our 20th founding anniversary. You will be part of all the exciting endeavors ahead.

YASUHIRO KUROKAWAPresident and Chief Executive Officer

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9 mins. to Subic-Clark-Tarlac and North Luzon Expressway12 mins. to Clark International Airport1.5 hrs. to Port of Subic1.5 hrs. to Manila4 hrs. to Tokyo

Product Destination

The Yokohama Rubber Company Limited, an international brand, is a leading manufacturer of high performance tires. It was established in 1917 in Yokohama, Japan as a rubber company that has a diversified line of business such as aircraft products,

high-pressure hoses and other industrial products.

With many subsidiaries and operations worldwide including the USA, YRC handpicked the Philippines to be their first Asia’s facility outside Japan as they consider the location stands as the hub of East Asia.

Expanding in Asia

It was in 1996 when YRC partnered with Kawasho Corporation of Japan (now JFE Shoji Trade Corporation) and established Yokohama’s very first plant outside the initiating country. 96% of the ownership goes to YRC and the rest is of JFE.

TYRC handpicked the Philippines to be their first Asia’s facility outside

WHO WE ARE

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Yokohama Tire Philippines, Inc. was then vested in the industrial site of Mabalacat, Pampanga, the Clark Special Economic Zone. Strategically located, Clark is equipped with an international airport, near Subic port area as well as few hours on the way to the capital city of Philippines which is Manila through North Luzon Expressway.

Choosing Filipinos to be in the combat zone of workmanship, Yokohama believes in our skills and as they say, combining Japanese high technology with Filipino craftsmanship is a superb distinction.

Filipinos were then sent to Japan, in where the head plant of YRC is located, to undergo training on producing quality pneumatic radial tires for passenger vehicles. A couple of years after, with right set of skills, YTPI is ready to begin the production.

At present, YTPI is the only rubber company that operates here in the Philippines.

The first ever tire was then released and millions follow thereafter. At present, 95% of which is being exported worldwide while only 5% is for the local market.

Moving ForwardAuspiciously, in the last quarter of 2014, Yokohama drives fully the rights as it was able to acquire hundred percent of the proprietorship. And today, YTPI’s commitment to global industry is to deliver an average of 22,000 tires per day. Another 15, 000 will be on production once the west plant is ready to fulfill the daily requirement, hopefully by 2017.

Since it started, YTPI has been marking the exporting standard by living through its vision of:

“We will be number 1.” And being number 1, among Yokohama’s plant global, could be achieved through our sense of duty of satisfying the customers’ needs and high standards by delivering the best tires while at the same time, never leaving behind our compassion for the environment and responsibility to a sustainable community.

In claiming this, YTPI breathes up to the core values:

“Dedication, Sincerity and Excellence”

We continue to develop the skills and potentials of our people and employ our machines with maximum efficiency and productivity. Guided by these philosophies, we are confident we will succeed and will contribute to the well-being of our stakeholders and to the economic development of the country.

Company Name: Yokohama Tire Philippines, Inc.Product: Pneumatic Radial TiresIncorporation Date: April 30, 1996 Company Address: IE-5 Clark Freeport Zone, PH 2023President: Yasuhiro Kurokawa Lot Area: 45.2haBuilding Area: 26.52haWorkforce: 2, 326 employeesPlant Capacity: 30,000 tires daily

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Tires You Can TrustThe technology of infusing orange-oil is what makes Yokohoma tires stand out. Derived from orange

peel, this oil creates a distinguished better grip, fuel efficiency and extended tread life. Currently, these are the line of products being manufactured at Philippine plant.

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s tQUALITYISO/TS16949: 2009Quality Management System

Outstanding quality is a tough yet a challenging role for Yokohama Tire Philippines. This year we have lived up to the theme ‘Go back to the basics and continuously pursue 4M (Man, Machine, Method and Material) improvements, to provide the products our customers demand’.

In keeping up with the quality standard, the Quality Assurance and Technology team of YTPI conducts an internal audit yearly to assess and evaluate our compliance to ISO/TS 16949 requirements including Customer Specific Requirements.

Locally, TUV Nord and the Department of Trade and Industry look on us on surveillance audit, Isuzu and Toyota on customers’ inspection. On the other hand, we have recently shifted to SGS Philippines as we believe new eyes could further contribute to our improvement.

In going global, Fiat Chrysler, Ford, CCC and BIS are also being taken in carefully. Yokohama Rubber Company, of course, will never leave us behind in terms of quality management sys-tem as they conduct the same audit in Philippine plant annually.

Kaizen,change for the better

On our commitment of giving customer satisfaction by meeting exacting needs, YTPI is making continuous improvement on standardized processes on all functions that involve workforce. Constant change on doing better is a business philosophy in producing our quality tires and

this year, series of kaizen activities were carried out and applied.

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Quality Management System

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3S: A s the Japanese culture found a

way of workplace organization efficient and effective through 5S, YTPI puts into practice

at most Seiri (Sort) and Seiton (Set in Place), or coined as 2S within the organization.

The Manufacturing Development Group (MDG) believes that the key to achieve high quality and productivity is to level up this 2S to 3S, adding Seiso (Shining) to drill.

Seiri - A Place for Everything. Keep what is needed and discard what is not, this workplace discipline will eventually lead to reduction of unnecessary cost to the company.

Seiton - “Everything in Place”. Everything must be stored in an organized manner and should be properly labelled. Easy access and quick identification of things at workplace results to efficient process flow and therefore increases the productivity of the workers.Uncluttered workplace prevents accidents related to poor housekeeping.

Seiso - “Clean as you go”. Clean workplace keeps employees away from accident and sickness, thus, increases the morale of the employees. On the other hand, clean machine prevents unproductive

downtime and produces quality tires.

The main objective of levelling up to a 3S workplace discipline is to carry out in each employee the habit of cleaning up. Cleaning is essential in eliminating dirt and foreign matter (FM) which can contaminate the raw mate-rials and eventually may result to the production of poor quality tires. Clean environment can also eliminate harmful bacteria and viruses that could affect employees’ health which may have an impact on productivity.

According to MDG, high level of product quality and productivity must be visible in the showroom or workplace which reflects a world-class work attitude.

Planning transpired in the first quarter of the year and the 3S system was fully implemented in October. New methods of implementation were then introduced by defining the requirements and communicated them through dynamic visuals in order for everyone to have a common understanding and format.

Along with a designated 3S spot and board, in which the 3S auditor will position to have a better view of the whole area and will be able to check activities in a daily basis and its improvements, there are also three key areas submitted for audit: storage,

workshop and manufacturing area.

A cross process audit conducted by each process is required in application of 3S. For an instance, a 3S auditor from Distribution will have to check Boiler’s 3S board and activities. The primary goal for executing such practice is to have a keen observation on the good habits and ideas of the other process and adopt it on own process.

Consequently, monitoring of compliance and performance is being done through regular assessment through 3S Audit Check Sheet which is being performed weekly. On the other hand, standardizing the new mantra, a documented procedure was also created to establish a criterion that serves as everyone’s guideline on ensuring and maintaining a safe, clean and efficient workplace. This will serve as audit criteria as well.

To keep everyone inspired and eager to participate as well as continuously exhibit 3S at their workplace, YTPI recognizes these employees through awards. Appreciations could be in form of certificate and monetary given at the end of calendar year.

3S Board 3S Audit Spot

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“Clean as you go.”SEISO (SHINE)

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before

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Chemical Weighing System

Previously, the procedure of loading of chemical bags to chemical tank is being prepared through visual management in which the team’s productivity is based on the actual picture posted on the board as a comparison to the essential materials. However, the error rate of human failure then is relatively high because of some unintended interaction between the operator and the machine. For an instance, door locks of all tanks can be unfastened by mistake, as the Japanese called it ‘Pokamis’.This fortuitous zone could actually lead to under -cured or no green tires good for curing which calls for ‘Poka-yoke’ or error-proofing.

Taking human error as a contributing factor in safety failure as well as to product quality deficiency, the process of Mixing has finally let go the art of visual communications and invested on high technology equipment, a Chemical Weigher Scanning System.

This system is designed with the technology of Quick Response Code or QR Code, a matrix barcode or two-dimensional barcode initially intended for the automotive industry in Japan but is now popular due to its fast readability and greater storage capacity.

A mixing operator equipped with a QR dispatch tag has to scan the delivery tag attached to each chemical bag with a barcode scanner. After scanning the delivery tag, tank door will be unlocked without accessing the others. In addition, the QR code can also detect expired materials and numbers of chemical bags to replenish. All the data then will be automatically stored to the inventory system.

With this intelligence, YTPI can now assure that the chemical materials mixed at cured tires are of hundred percent in quality prior to delivery.

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“Clean as you go.”SEISO (SHINE)

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Total Production. Knowing that high inch tires are gaining popularity, YTPI was quick to develop new tire sizes at its west plant. Significantly, Light Truck (LT) tires production increased by 81% compared to the previous year.

As the two-phased expansion project of

the west plant was completed this year, it is projected that YTPI’s production capacity will continue to increase in 2016. With a target of 37,000 tires per day, Philippine plant has the highest production capacity among YRC subsidiary plant outside Japan.

Our total production in 2015 increased by 3.5%, producing an additional 246,807 tires in the annual production compared to the previous year. With this increase, the company has recorded an average of 22,000 tires in its daily production - the

highest annual average daily production in the history of YTPI.

erformanceOur

erformanceerformanceOurOurP

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993 1,472 1,641 1,685 1,699

2,003 2,580

3,048

4,468

6,009

6,743

5,641

6,901 6,986

6,134 5,664

7,138 7,384

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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243.7

288.5 269.0

237.1

290.2

327.4

25.0 12.0 17.9

5.9 21.1

41.5

10%

4%

7%

2%

7%

13%

0%

2%

4%

6%

8%

10%

12%

14%

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50.0

100.0

150.0

200.0

250.0

300.0

350.0

Y2010 Y2011 Y2012 Y2013 Y2014 Y2015

Net IncomeSALES OPERATING PROFIT OPM

144.6

194.6

264.1

343.1

384.2 374.9

62.4 104.0 101.0 180.4 205.7 162.9

82.2

90.7 163.2

162.7 178.6

212.0

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100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

Y2010 Y2011 Y2012 Y2013 Y2014 Y2015

Balance SheetASSETS LIABILITIES EQUITY

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*million dollars

The increase in production have resulted to an increase in sales. With a net sales of $327.4M in 2015, YTPI has recorded its highest operating income amounting

to $41.5M or increased by $20.7M compared to previous year.

Net Income. Extensive programs on cost reduction contributed to an increase of $17.9M in net income compared to previous year. With a lower price market of raw materials, mainly natural rubber and oil, YTPI benefitted from an average of 14% decrease compared to standard prices. To reduce further, the company doubled its effort to tap local or alternative suppliers to cut cost on raw materials. Expenses were also maximized compared to 2014 due to increase in production.

Equity. YTPI’s equity has increased by $33.4M, from $178.6M in 2014 to $212.0M this year. This is due to the increase on retained earning account which is the result of increase on net income.

On the other hand, the decrease on asset have resulted from the decrease on inventories by $14M due to low finished goods and raw materials inventory. Another factor to consider is the decrease on property, plant and equipment, mainly due to the increase in depreciation of building and molds.

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eopleOur

People are at the core of everything we do and they are the key to our success. At YTPI, we provide opportunities to our employees to strive harder and further. Along with healthcare, rice incentives, monetary bonuses and other benefits, we give chance for our people to move up at their career profile while building their families

At present, we have a total of 2, 326 employees which consists of 142 female and 2, 184 of opposite gender. We welcomed 297 employees this year through

different talent acquisition channels while making sure 90% of which are sourced locally here in the region.

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WorkforceWorkforce

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Christmas Party. Celebrating the yuletide season with the whole YTPI family is also a yearly event that comes to be more exciting with so much entertainment and great raffles prizes.

While our people work on their career goals and ambitions in life, YTPI creates a work-life balance environment for them. A healthy working environment has an impact on the well-being of an individual and enabling our employees to have fun at work could in fact increase happiness and job satisfaction. Through the Labor Management Council, YTPI arranges various company activities that promote social engagement and they are as follows:

Sports Festival. We engage our employees in sports and fitness activities to encourage a healthy lifestyle and social interaction in the spirit of camaraderie and fair play. A wide selection of sports, such as basketball, volleyball, bowling, billiards, darts, chess, badminton and table tennis were steered, so employees can have the luxury of choosing which among is the best for their personality and strength.

Company Outing. Every summer, YTPI organizes an outing that could be the best time for employees to take their minds off of work and just enjoy. We make them feel refreshed and renewed so they can come back to work with more energy and zest, ultimately means happier employees. This year, the team headed out to Miami Heat Beach Resort in Morong, Bataan.

Family Day. YTPI recognizes family as an important unit of our society. Annually, a family day is being carried out to give opportuni-ty to spend more time together with the loved ones, fostering unity and understanding among our employees and between their families. Villa Alfredo’s Resort at San Fernando, Pampanga served as the venue in 2015.

Work-Life Balance

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Along with an annual medical examination, a number of various lectures on specific target audience were steered as well to encourage employees to exhibit a

dynamic healthy working environment and living.

Lactation FacilityEven at a minimal percentage that makes our workforce, Yokohama is totally aware of the necessities of our women employees. A lactation facility was opened this year to meet the need of those who are on breastfeedin, which includes a manual breast pump and refrigerator for storing expressed breast milk.

BloodlettingAdditionally, YTPI conducts bloodletting drive to encourage its employees to donate and help through a program done yearly in cooperation with Philippine Red Cross.

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WELLNESSAs Yokohama Tire Philippines, Inc. considers employees’ health as a smart investment, a periodic health assessment is being seized once a year. It is on the course of the organization’s objective towards an ideal workplace that primarily aims to control and prevent ailments and chronic diseases.

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Going back to the basics has been the mantra of YTPI this year. In addition to Personal Protective Equipment (PPE), having the right set of safety attitude is the key to prevent unnecessary incidents. Ten principles for a strong safety culture

were brought out to be pursued consistently in a day’s life.

SAFETY CULTURE

SafetyOHSAS 18001:2007Safety Management System

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AS JULY IS KNOWN AS THE NATIONAL SAFETY AWARENESS AND PREVENTION

MONTH, YTPI ORGANIZED ACTIVITIES IN LINE WITH THIS AND

THEY ARE AS FOLLOWS:

Search for ‘Safe Man of the Day’. Instead of looking for unsafe findings, YTPI shifted to a more positive approach on patrolling, the search for safe man of the day. This is to encourage employees to put in mind safety all the time and act accordingly. “I” complete the key in making YTPI a happy and safe workplace.

Forklift Driving Competition. YTPI’s daily operations involve a critical activity aside from machine operations, that is forklift driving. Training and certification on forklift driving was conducted not only to test the ability but as well as the discipline of Certified Forklift Operators. Routes and obstacles were set along with judging criteria: starting of forklift, initial forward, operation ability, stopping and parking the forklift and speed.

Night Earthquake Drill. How well are we prepared to handle earthquake emergency - that is basically the question that prompted YTPI’s Incident Commander to have a drill activating the company’s Emergency Response Team. The team opted to have an evening drill considering that disasters come unexpectedly, even at the most critical time – night time. With an assumed earthquake intensity of 8.6, the drill materialized through leadership of IC with the following teams’ simultaneous response: facility, search and rescue, first aid, evacuation and crowd control. The Bureau of Fire Protection, Mabalacat City

SafetyActivites

was also present during the activity to guide and evaluate the activity.

Emergency Preparedness Response. The Safety Management System also initiated an Emergency Preparedness and Response seminar and benchmarking activity to schools and universities around Pampanga as observance to National Disaster Consciousness Month. Three universities received EPR seminar particularly Holy Angel University, Angeles University Foundation, Republic Central Colleges. Another, eight high schools namely Angeles City Science, Mabalacat National, Mauaque Resettlement, Telabastagan Integrated and three for grade schools, Pandan, Dau and Villa Teodora.

Along with these activities, a firefighting competition was carried out in March in observation of the Fire Prevention Month.

Firefighting. Security team aced the 3 categories (fire extinguishment, busted hose and up the ladder and bucket relay) of the internal fire brigade competition took place in the first quarter of the year and proceed to the regional race. 2015’s internal fire brigade competition is the 10th year of YTPI’s effort on turning employees more equipped of firefighting skills essential in company’s emergency preparedness and response system. Young Guns went on to the regional race Central Luzon Fire Olympics and placed second.

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While YTPI is creating a world-leading brand, we certainly do not drop environmental stewardship. Our business sustainability starts with an environmental policy of

conserving natural resources, thus, we remain constantly aware of the need to reduce consumption on energy, fuel, water and emission of carbon dioxide.

Improving fuel usage. The non-achievement of target on fuel consumption resulted from constant delayed start-up of generator on production and another, irregularities on insulation activities of THX curing machine. Despite non-achievement on the target of fuel consumption, YTPI is persistent on laying out plans and executing them to hit our goal on reduction. Some of the initiatives that were applied this year and will still be carried out onto the next year are steam recovery, steam pipe and trap installation besides regular checking and improvement on dryness.

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Target on energy conservation has been decreased to a million kilowatt hour and water will be remained stable as we will be focusing exertions on west plant. All actions have been applied to east plant in the past years.

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EnvironmentISO 14001:2004Environmental Management System

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The relative increase on consumption of energy, fuel, water and on carbon emission and wastes have resulted from the increase of our production in

2015. West plant is expected to be fully operational in the next year, thus, our consumption on all parameters is expected to go higher over time.

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Identifying energy savings.Huge electricity consumption owing to lighting equipment and continuous running of machines and ejector pumps at full voltage on normal and idle operation is one of the angles YTPI is looking at to decrease the consumption rate on electricity. We have eliminated idle running machines and installed inverter as a key on pointing out energy saving scheme and as a result, we have reduced consumption by 588, 600kWh per year. On the other hand, shifting to LED light from fluorescent is one of the efforts that saved us 2, 290, 909.2kWh.

On Conserving Water Supply.The rainwater recovery facility of YTPI was built in 2014 and became fully operational just before the end of that year. It has been the main approach of the plant this year on sourcing independent water supply that could reduce the demand for groundwater. The 1000m³ facility located at west plant relieved our goal of conserving water making the figures three times larger than our target of 15, 000m³. We held off 60, 484m³ of water along with other means such as replacement of cooling tower fin and float valve of chiller and cooling tower.

Forever ForestOn the 8th Forever Forest, 4, 735 seedlings comprised of 45 native species were planted by 525 employees and external

volunteers. A total of 54 tree species currently exist in FF 1 and 7.

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Our approach on reducing carbon emission

As a result of improvement actions to reduce energy saving of 3, 095, 093kWh, our carbon emission per year declined to 792.56T.

YTPI has a strong intent to accelerate carbon reduction programs through Environmental Management System. Our approach on environmental stewardship begins with Forever Forest and engaging community on such activities.

On the 8th Forever Forest, 4, 735 seedlings comprised of 45 native species were planted by 525 employees and external volunteers. A total of 54 tree species currently exist in FF 1 and FF 7.A trial biodiversity investigation was conducted at Forever Forest 1 and 7, recording plants and animals exist therein. On 54 tree species identified, 10 are endemic in the Philippines and 15 are listed as threatened on International Union for Conservation of Nature (IUCN) Red List.

There are unidentified existing trees in Forever Forest as resources on lists of species that can be found in the country are limited.

Clark Freeport Zone is mainly covered by industrial establishment and reclaimed land and within a one kilometer radius, there are no large natural forest. Forever Forest therefore potentially plays an important role for habitat of forest species around the area.

Above and beyond, the number of trees planted since the launch of Forever Forest in 2008 has now reached to 36, 849 which is sufficient enough to sequester around 800 tons of carbon dioxide per year upon maturity.

&BiodiversitySimilarly, 12 kinds from the insect family

were identified along with 6 birds.

8 BUTTERFLIES

6 BIRDS

4 INSECTS

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Birds: Brown Shrike, Pied Triller, Sparrow, Large-billed Cow, Zebra Dove, Black-Head Long-Tailed Shrike. Butterflies: Common Grass Yellow, Plains Cupid, Striped-Blue Crow, Peablue, Lesser Grass Blue, Psyche, Striped Albatross, Mottled Bush Brown. Insects: Dragonfly, Bat, Grass Lizard, an insect with black body.

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ECO-PARKCLEAN-UP DRIVE

Clean-Up Drive. Cleaning up the grounds of YTPI is a routinely activity that involves employees. It has involved managers and trainees of both Filipino and Japanese representatives as well as Japanese officers. A total of 230kg of wastes were collected. By 2016, the every other month Clean-up Drive frequency will turn out to be monthly.

Waste Management. On influencing community to practice YTPI’s environmental habit, we carried out an initiative that could impart our knowledge on waste management. 33 trash bins were donated to two schools, namely Don Honorio Ventura Technological State University – Porac Campus and San Joaquin Elementatry School, both located in Pampanga. Trash bins are color coded according to segregation of recyclable, biodegradable and non-recyclable. 200 attendees consist of students and faculty members took orientation on waste management.

Eco Park. An ecological park was hurled sideways of the rainwater recovery facility. Pieces from the competition Crafts from Scrap: Rubber Edition were showcased such as garden table set and well made out of scrap tires. Alongside, murals on environmental awareness painted by high school students of Mabalacat and Angeles, Pampanga serve as a backdrop. Eco Park was launched in time of United Nations Environment Programme (UNEP) declared environmental month which is June.

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As most companies nowadays have migrated into the most convenient way of implementing online transactions, YTPI is similarly embracing the new technology and business practices. Going paperless could have save the company further on money and time, higher work efficiency, saves space, easy track-ing of records and above all, helping the environment. The Management Information System (MIS) ventured on new online systems mainly designed for selected programs such as: Work Request, Public Relations and General Services (PRGS) Request and Activity and Trouble Report.This program is a paperless system that eliminates printing of hard copies on papers such as forms, requests and reports. All requests are now being submitted on the web through online portals. Employee Data Inquiry (EDI) credentials function here as a user login that is a pre-requisite in getting into the system and essential in tracing the requester’s profile section. In this sense, Managers and MIS facilitator can certainly evaluate pending request with less effort prior to assigning tasks to the team in charge. An email notification will be sent to the user once approved. MIS Online Request System provides convenience to all employees when requesting services and items and job orders. Generation of reports for monitoring purposes in a graphical method is also one of the features of Online Trouble and Activity Monitoring and Report System, making an integral part of going live on the web.

As more programs will be implemented in the next year, it is our goal to reduce paper usage by 20% on 2017. Through this initiative, YTPI was able to save paper, creating a greener environment as well as contributing to cost reduction.

WASTE MANAGEMENT

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BECOMING GREENER: FROM PAPER TO WEB

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Giving back to the community, we collaborate with our employees, health institution, charitable organizations and local governance to support the needs of the society where we operate.

Toilet Donation: Focusing on students’ well-being One of the contributions of YTPI in sustaining education is nurturing the wellness of students while they are at school.YTPI has been donating comfort rooms since 2012 and this year’s recipient is one of the public secondary high schools in Angeles.Rafael L. Lazatin Memorial High School has an annual 3, 144 students from Grade 7 to 10 and they only have two functional toilets with three cubicles each used by male and female students respectively. Through the company CSR initiative, YTPI renovated the two comfort rooms increasing six cubicles to ten.With the rehabilitation project, the number of cubicles in a comfort room developed into five, summing up to a total value of about P320, 093.20.

We know our support is making a huge difference and they are as follows:

ommunityommunityOurFeeding Program. Targeting the most vulnerable children in our society, we continue to assist on ending malnutrition and improve on food security among students by providing right food.Toilet Donation. As YTPI sees school wellness a vital part of sustaining education, we have just turned over our 4th project on toilet donation this year.Scholarship. Every year, YTPI offers university scholarships that encourages and motivates individuals to excel academically and maintain high academic standards. The grants cover full payment of tuition fees and allowances. Community Outreach Programs. Meant to fill the gap in the services provided by the mainstream, Yokohama Tire Philippines sees this opportunity to lend a hand. In 2015, we got four charitable institutions covered.Medical Missions. YTPI recognizes adversity of access of selected areas in the region to healthcare and medicines. We make way to bring the mobile care direct to our identified publics who need more.

ommunityommunityommunityOurOurommunityOurommunityC

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Living in poverty and food insecurity could be one of the hindrances of keeping our children stay in school. Going to school on an empty stomach may possibly

have an impact with the decline of number of enrollees annually.

Feeding Program: Nourishing school healthYokohama Tire Philippines, Inc. sees the children as an investment of the future and this is actually in the primacy of our Corporate Social Responsibility initiatives as we believe everything starts at the bottom unit of the society in which the children embodies.Complimentary to this assessment, YTPI launched a feeding program way back in 2012 and still continues to implement this with one school as a beneficiary in a year. Through the help of City Nutrition Action Office, YTPI identified 60 wasted and severely wasted pupils from Sitio Pader Elementary School in Brgy. Pulung Maragul, Angeles City. The program propelled sometime in September with the assistance of the school’s Parents and Teachers’ Organization and City Nutrition Office. Ran in 60 days during school week, Mondays through Fridays, the project is expected to be completed by December with mix of Kindergarten to Grade Six participants. With kits given away to these pupils that are packaged in a draw string bag, the kids could not even conceal their anticipation for what is inside. A set of bowl, cup and spoon and fork would be their utensils on eating their way to escape malnutrition. Morning meals are planned based on suggested food value that comes with a glass of milk to guarantee that hundred percent of the beneficiaries would recover back to normal status at the end of the program.Improvements on the nourishment of these children could have a greater impact later in life.

Toilet Donation

Feeding Program

Medical Missions: Giving access to healthcare and medicineFor the past several years since its launch in 2009, Yokohama Tire Philippines, Inc. has been providing health care to communities in the region with little to no access.

The company seeking for a healthier future does not only confine within the premises of the

plant but also goes out to the society we belong in. Outside the plant, the

company works with EastWest Medical Healthcare, Inc., our

official Health Maintenance Organization (HMO) provider and with barangay officials. Volunteers need not to be sourced out from available resources as our people finds deep desire to reach extra mile in providing assistance to make

this mission possible. And just recently, we have

outnumbered our target of 300 beneficiaries with 340 participants

appeared on site in Brgy. Cuayan of Angeles City, as first community to be

given of medical assistance for this year. The growing figure didn’t stop there as the second leg of the mission continued to Sta. Ines, Mabalacat with 311 residents sought for healthcare. The program does not only offer onsite consultations but also goes with medicines prescribed by the doctors presented therein. Even supplementary vitamins that the patients may require were also dispensed, easing the burden of the patients about the costs.In YTPI, doing more, helping more and extending ourselves just so the others could live better has become a corporate culture.

Scholarship: Preparing our students’ future Financial assistance is a necessity for college students and YTPI provides an opportunity to earn an education.With the average budget of P33, 652.00 ($716) per annum for each student along with stipend and book allowances, YTPI was able to have 15 grants this year.A total of six students are currently in their fourth and fifth year at Don Honorio Ventura Technological State University and Holy Angel University, both situated in Pam-panga. Going extra mile, YTPI also schooled two students at Tarlac State Univer-sity and another two at Saint Louis University in Baguio, all are going for their senior year apart for one who would take the ladder as a ju-nior. Our community relations has gone further this year as we continue our flight on helping determined scholars of Mindanao. Added to this year’s roster of universities is the Mindanao University of Science and Technology, a state university lo-cated in Cagayan de Oro. Five students were grant-ed the scholarship, four of which are taking up Electrical En-gineering and one for Mechanical. All are freshman except for one who is currently on his sophomore year. One of the perks that these students will get is that they can get to work to the region’s largest firm as soon as they have graduated, contributing to a brighter endeavors that all of them may have in the future.Everything considered, YTPI scholarship has been stretched to a total of 42 grantees but unfortunately 12 of which were not able to maintain the required grade point average (GPA). Currently, we have a total of 12 graduates since our schol-arship program started in 2009 and four of them are now working here at Yokohama Tire Philippines, Inc.

Medical Mission

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Scholarship

Outreach Programs:Focusing on communities’ well-being

1 Bahay Pag-ibig (House of Prayer). Settled in San

Fernando, a home is estab-lished twenty years ago for the abandoned elders. When at home, we feel a deep root of giving back to the people who have nurtured us, this is not the case to the seniors here in Bahay Pag-ibig. Unfortunately, the people they have brought up have decided to give them away. And this Christmas, the people of YTPI just melt the hearts away of 60 seniors.

2Munting Tahanan ng Nazareth (The Little

House of Nazareth). Munting Tahanan ng Nazareth is a facility for mentally challenged people with special needs. Medicines and food were given away to 40 special individuals who are in the said institution in Mabalacat.

3Cancer Warriors Foundation. With the

current population of 76 in its Pampanga Chapter at Lubao, Cancer Warriors Foundation is a Philippine based patient support organization for families of children with childhood cancer. YTPI is with their journey of fighting for children and adolescents with cancer.

4Holy Rosary Parish – Pamaskong Handog.

The parish in Angeles has gathered its indigent people with a total of 100 in population to enjoy Yokohama’s small program in celebration of life and Christmas along with grocery baskets.

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&beyond 2016

CSR Repor t Committee

Board of Directors

Yasuhiro KurokawaPresident and CEOMatsutaro MaedaEVP / Plant Operations Division ManagerKoji WatanabeEVP / Plant Operations Division ManagerYoshiyuki KomoroVP / West Plant Project LeaderHiroyuki ShioiriDirectorJuanito AronaVP / Asst. Plant Operations Division ManagerAngelina CasasolaVP / CSR and Business Operations Department Manager

Technical Working Group

Chair: Joanne Pangilinan Public Relations and General Services Section Manager

Associate: Maylene TalagonPublic Relations and Community Relations Supervisor

Members:Patrick PinedaPublic Relations and General Services StaffChanelle BarramedaTire Production System / Manufacturing Development Group SupervisorMark Cris TrobadaTire Production System / Manufacturing Development Group AssistantJohn Rey SantosMixing Production SupervisorAllan Jerryco GatusFinancial Analyst

Thank you.

Members

Allan LavariasVP / Quality and Technology Department ManagerJeffrey PolicarpioQuality Assurance Section ManagerJose Cansino, JrManufacturing Development Group Section ManagerRommel PanergoManufacturing 2 Department ManagerCynthia ValenciaManufacturing 2 Asst. Department ManagerAlbert John TolentinoMixing Section ManagerMarilou PenianoCorporate Planning Department Manager Reynaldo MandocdocCorporate Planning Asst. Department Manager Lorna CervantesAccounting Section Manager Geraldine BautistaCost Planning Section ManagerEgelberto DoloHuman Resource Management Section ManagerLiza ArrietaSafety Management System Section ManagerReynante LegionEnvironmental Management Section Manager

Mary Sharon San JuanHuman Resource Management Senior SupervisorBernadette QuanLabor Management Council / Distribution Assistant Liza AlfonsoCompany NurseAshley CamposSafety OfficerMarvin LagmayEnvironmental Management Section SupervisorMary Jane CarlosJr. Systems Engineer

beyond

Yokohama Tire Philippines, Inc.IE-5 Clark Freeport Zone, Philippines 2023

CSR and Business Operations+63-45-599-3603 +63-45-599-3613 / +63-2-584-4087angelina.casasola@ytpi.com

www.ytpi.com