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Response to the Third-Party Opinion

Yokohama Rubber took the following actions in response to Mr. Kawakita’s third-party opinion about CSR*1 Report 2014. A selection of these actions is presented below.

Mr. Kawakita’s Findings Yokohama Rubber’s Response
Labor Practices
I strongly urge the Company to establish an environment where employees can continue to work, while also taking leave, such as by hosting workshops that introduce examples of people that have taken nursing care leave. We created a working team involving management and labour and held interviews with employees who have taken nursing care leave, both in an effort to introduce examples. We also confirmed the current situation by carrying out a survey of our benefits programs. We introduced a flex-time system for employees providing nursing care and are currently examining other measures as well. [Human Resources]
I hope the Company will promote even more effective measures aimed at preventative care (in terms of mental health), such as establishing a hotline where employees can discuss personal problems. We accept consultations from employees about health, workplace, money and life plan issues. We involved management and labour in the establishment of the Health Promotion Committee and Mental Health Subcommittee, where we are reviewing issues. Under the guidance of an occupational physician, we are currently moving forward with preventive measures for mental health issues. [Human Resources, Safety, Compliance]
I expect the Company to encourage the participation and involvement of reemployed workers in their local communities. We launched our social contribution activity support system in FY 2014, under which employees working at all of our domestic group companies are beginning to get involved with social community activities, including those in their community. [Human Resources, CSR and Environmental Affairs]
I strongly encourage the Company to accelerate its development of the next generation of executives at both its head office and overseas sites based on a long-term goal and strategy given where the market and the company will be in 10 years time. We will continue to open new sites to support our expansion into major international markets. Hiring and developing people and executive candidates locally is critical to these business operations. We will continue to develop human resources globally and offer a job rotation program. [Human Resources]
I ask that the company to continue to work proactively toward implementing measures to ensure that employees with disabilities are retained over the long term. We examined ways to improve the working environment and address issues posed by increasing opportunities so that persons with disabilities can contribute more. We are in the process of creating a development program and evaluation system for these human resources as well. [Human Resources]
I urge the company to not only look back on past accidents on the calendar, but also to incorporate safety improvements and remedies for facility specifications and to issue a report about the progress of evaluations and improvements to ensure the greater effectiveness of safety measures. We carried out risk assessments and opened workplaces to the public at each of our sites and based on the results we are now making changes to facility plans and SOP*2. Additionally, we are using company-wide safety checks and follow-up to check and improve activities, and we will continue to engage in these effective efforts. [Safety]
The Environment
I strongly encourage the Company to thoroughly shed light on its challenges and methods, such as transitioning to the non-fixation of energy usage adjustable to the fluctuation of production volume (Just- In-Time for Energy), and also to share the same support system among divisions and overseas sites. We are carrying out activities to reduce energy loss in line with fluctuations in production volume (operations/shutdowns). Every year our domestic and overseas sites hire outside consultants to provide guidance on energy efficiency and initiatives are in turn being rolled out. [CSR and Environmental Affairs, Facilities]
Fair Operating Practices
(As for procurement) I strongly encourage the Company to establish a support system with suppliers for sharing and problem solving actual cases and further understanding initiatives in greater detail, based on global trends in the sector. From the standpoint of stable procurement and ethical practices, we checked for compliance with regulations around the world. For pursuing fair transactions with business partners, we encourage information sharing about our procurement managers in Japan and overseas through meetings and training sessions. [Procurement]
Consumer Issues
(As for quality assurance) I hope that it will incorporate the minimization of impacts on customers as part of its management indicators and further advance quantitative and effective measures. Under our quality policy, we are working to provide appealing products that satisfy our customers. We check quality every step of the way up to market launch and pursue further improvements through customer satisfaction and technical services provided to customers. [Quality Assurance]

*1 CSR :
An acronym for corporate social responsibility. At Yokohama Rubber, we view CSR -as the trust placed in a company by society. Toward that end, we are working to build a trusted identity as a contributing member of the global community.

*2 Standard Operating Procedure(SOP) :
Helps employees to work efficiency, safely and with surety.