CSR Report of SHANDONG YOKOHAMA RUBBER INDUSTRIAL PRODUCTS CO., LTD.

President’s Message

SHANDONG YOKOHAMA RUBBER INDUSTRIAL PRODUCTS CO., LTD. was incorporated in January 2006 as a joint venture between Shandong Rubber Co., Ltd. and Yokohama Rubber (China) Co., Ltd. Our company is situated in Linquan County, a three-hour drive from Qingdao City, almost in the center of Shandong Province. We are a manufacturer and seller of conveyor belts. As is highlighted by the air pollution witnessed throughout the country, environmental measures have failed to keep pace with economic and industrial development in China.

This is despite the fact that interest in environmental measures has been increasing year-by-year. Against this backcloth, users of conveyor belts are now also beginning to pay more attention to environmental products. In such a Chinese market, we are making efforts to expand sales through the introduction of environmentally-friendly belts such as pipe conveyors and

eco-belts. As a result of such activities, our company is positioned as the most advanced, cleanest and highest-quality Japanese joint venture in the belt industry, and this has attracted more attention. Ours is a company that government officials often visit. On August 24, 2013, we held our 3rd planting activity for the YOKOHAMA Forever Forest Project, and we continue to promote this event. On the safety front, in June 2013 we held the “2nd Company-Wide Disaster Control Drill” in front of a group of 30 plant visitors comprised of officials from the Safety Bureau, other local government officials and representatives of local business. In December, Yokohama Rubber conducted safety education through discussions that were based on “open work observations”. Based on the results of such measures, through raising the safety consciousness of our employees, we have continued our record of zero accidents up to the present. Looking towards the future as well, we want to push vigorously forward with our aim of becoming a world class business in protecting the environment that also contributes to local societies.

Zhang yusun

Promotion of gender equality There is no gender discrimination whatsoever with respect to how our employees are treated, etc.

Human Rights

Each month we conduct a Safety and Health Meeting. At these meetings there are reports regarding improvements made in response to issues identified during previous-month plant patrols. General reports on plant patrols and environmental reports, etc., are also delivered. Through this practice of issues being raised, the safety consciousness of each individual employee is being greatly improved.With respect to responding in cases of disaster, on June 26 we held the “2nd Company-Wide Disaster-Prevention Drill” in front of a group of 30 plant visitors. This group was comprised of officials from the Linquan County Safety Bureau, other local government officials and representatives of local business. During the drill, we conducted firefighting exercises, evacuation exercises and simulations to rescue injured people. Through such actions we are preparing to respond if and when disasters occur.

Labor Practices

Human rights educationAlthough we do not implement any special human rights education, we do encourage activities that promote communication among our employees.

Business activities:

Total site area:

Number of employees:

Location:

Production and sales of conveyor belts

50,000 m2

282

Linquan County, Weifang City, Shandong Province

Human Resources and General Affairs SectionTel: +86-536-334-3576 Fax: +86-536-335-3515e-mail: wflqwenli@yahoo.com.cn

Contact for consultation and complaints:

The disaster prevention drill

The Environment

Environmental managementFollowing on from FY2012, in FY2013 we again achieved zero serious environmental accidents and zero environmental near-accidents. Furthermore, we have received no complaints from neighborhood citizens regarding noise, odor or vibration issues.

Environmental data

Category FY2009 FY2010 FY2011 FY2012 FY2013

Waste emissions (t) 639 777 129 213 225

Proportion sent to landfill (%) 0.0 0.0 0.0 0.0 0.0

Energy use (oil equivalent: kl)

Electric power 1,188 1,433 1,495 1,459 1,471

Fuel 3,235 4,388 3,819 3,846 3,998

Total 4,423 5,821 5,309 5,305 5,469

Greenhouse gas emissions (1,000t-CO2) 13.9 18.5 16.6 16.7 17.3

* 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.

Environmental policy

Basic philosophyWe fully recognize the importance of preserving the global environment and we work actively to conduct both environmental protection activities and prevent global warming in all our operations. We continue to promote environmentally-friendly management practices and we contribute to the conversion to a recycling and renewable society, such a society being one that is capable of sustainable development.Environmental Policy(1) We comply with laws and rules related to the environment.(2) We place top priority on environmental protection and manage by EMS.(3) We share our environmental conservation policy and education among

all employees and local communities.(4) We lead efforts in the reduction of environmental impact, including

energy savings, reduction of waste amounts and promotion of reuse activities, etc. We will realize zero emissions.

(5) We promote GD 100 activities as the Mid-Term Plan of YRC Japan, which has the purpose of becoming a top level contributor in terms of the environment.

I. We continue to improve our environmentally friendly management.II. We promote prevention of global warming.III. We contribute to a sustainable recycling society.

Corruption preventionOur Purchase Department prevents unjust acts at the time of placing orders by competitive quotes and bidding. We have installed an order placement gatekeeper (a mechanism whereby orders cannot be placed without confirmation (a signature) from the gatekeeper (an executive manager)).

Fair Operating Practices

Communication with usersExecutives of our company regularly visit users and have exchange meetings with them. At these meetings they receive opinions regarding the usage status of our products and they also field requests from users, etc.

Consumer Issues

Relationship with local societiesParticipation in the YOKOHAMA Forever Forest Project held in August 2013 was considered, however, in light of “anti-Japanese sentiment” at the time, the participation of officials from the Environment Bureau of the township government was prevented, and participation in the event of local citizens was limited.

Community Involvement and Development