1

13.01.10

Yokohama Europe GmbH

2

Yokohama’s Basic PolicyTo improve brand awareness

To increase quantity & share

Increase sales of profitable products for HPT, SUV and main sizes (e.g. 205/55R16)

ProfitImprove profitability of Distributors

Improve profitability of YRC

Earn resources from the profit which will be used for activities to increase sales

3

Before

No standard price index for each size

Main sizes and high inch sizes were set at a high price

Low-inch A.drive was priced too low and was unprofitable for YRC

Our price did not always match the market price

CIF prices of profitable sizes for YRC were high, so distributors could not achieve a high sales quantity

More sales of unprofitable sizes meant larger deficit for YRC

The profitability of each size is now similar for YRC and Distributors

Distributors are able to set competitive prices for their market

4

Price decrease has been made on main sizes/HTP/SUV to make them easier to sell

Prices increase has been made on mass selling & least profitable sizes (lower inch)

Based on our policy, we would like to encourage you to improve your sales of profitable sizes, therefore increasing your own profit

After