Message from the President

Pursuing Sustainability and Promoting Creation of an Entity that Can Win. Toyo Tire Corporation Representative Director and President Takashi Shimizu

With the change of company name to Toyo Tire Corporation in January 2019, we made a fresh start as a business entity centered on mobility. As a member of a business group with “tire” in its name, each and every employee proudly supports the mobility society as they work toward its betterment with a sense of responsibility.
The mobility industry is at a significant inflection point. Seeing an opportunity in this time of change, TOYO TIRE aims to be a company whose presence is genuinely needed by the public and keeps taking on challenges for survival.

Delivering Value of Unique Strengths to Society

About 15 years ago, we opened a new tire production plant in the U.S. With the introduction of our proprietary production method, the plant gave rise to tough and aggressively designed large-diameter tires, a standard which met the expectations of car-enthusiast Americans. It was a case of us locating the latent need in the market and becoming the first to materialize the yet unmet demand. Now TOYO TIRES and NITTO are enjoying high popularity as some of the leading brands of tires for professional-grade SUVs, the prevailing vehicles in North America, to become an integral part of the automobile culture in the U.S.
The Toyo Tire Group may not be among the largest tire manufacturers in scale, but we have opted for a strategy to expand business by “leveraging our unique strengths” as we tap into our agility and flexibility and fully optimize our resources. Delivering diverse values to society through business management - we believe this is our corporate mission.

Setting the New Growth Strategy as the Backbone of the Mid-term Plan

Now, you may ask, what is TOYO TIRE’s biggest unique strength? I would say it is our “presence in the differentiated area of specialty.”
In the Growth Strategy for the Next Corporate Stage, which was published in August 2019, we declared that our key policy would be to further enhance our existing strengths. In order to expand and increase the supply of our competitive, high-performance large-diameter tires, we will further ramp up capacity at the existing plants that underpin our North America business.
In Europe, on the other hand, with a new tire plant currently under construction in Serbia, we will expedite local production for domestic consumption there and complement supplies to the North American, Middle Eastern, and African markets. We also hope to conduct significant renovations on our tire plants in Japan. Other key projects in the new growth strategy include the establishment of the “R&D Global Tripolar System (for strengthening R&D at the three poles of Japan, North America, and Europe),” which is designed to improve technological development prowess and the enhancement of the overall levels of our sales capability on a global basis.
In FY2020, we began drawing up a new medium-term business plan that will start in 2021, with this growth strategy at its foundation. At the same time, we will work on the creation of a future mobility society by making the most of cutting edge technologies, while providing attractive products globally as we constantly stay ahead of the market.
While working to promote and develop the auto industry and stimulate a rich automobile culture, we will focus on solutions to numerous social issues, including the environment and human rights, by contributing to the establishment of a sound value chain.

Sharing the Same Sustainability Goals in 2019

The UN Sustainability Development Goals (SDGs) have become a globally standard business rule for achieving long-term economic growth. Demonstrating what form of sustainability we wish to realize in the mobile society and seeking solutions to this challenge - We believe this to be a managerial issue of paramount importance.
In March 2019, we announced TOYO TIRE’s SDGs, which we must address to achieve the ideal state of our business in 2030. All 14 goals thus set involve social issues that the Toyo Tire Group intends to confront and find solutions to for the sake of sustainability, including climate change, demographic changes, and technological progress.
As we go about achieving TOYO TIRE’s SDGs, the Toyo Tire Group will make maximum use of its resources. If there is anything that is not available within the Group, we will use our ingenuity and efforts by relying on our unique approach of “turning the weakness of not having everything into a strength” to make up for what is missing by reinforcing partnerships, reducing business risks, or constructively expanding business opportunities.
After the announcement of TOYO TIRE’s SDGs, we have engaged in dialogues with each organization and Group company by taking advantage of every available opportunity. In so doing, we try to spread the understanding of our SDGs within the Group by explaining the background leading to their establishment and the rationale behind the need for us to work on them. We hope that everyone in the Toyo Tire Group will have a better understanding of our ultimate goal of raising our corporate value, while examining how our business can address global issues and requests from our stakeholders.

2020: The Year to Prepare for Actions to Take in the Next Decade

In 2020, we will start preparing a master plan that our management should follow for the remaining decade (2021-2030) to achieve TOYO TIRE’s SDGs in 2030. In order to eliminate the bottlenecks that were identified in the dialogues within the Group last year, we are in the process of developing a new framework for enhancing an awareness-raising campaign and monitoring progress in activities by each organization.
This year, we are supposed to draw up a new medium-term business plan. Given the fact that TOYO TIRE’s SDGs present integrated goals for the Group’s business and sustainability, in future issues of our CSR Reports and elsewhere we will explain to our stakeholders the management targets of TOYO TIRE’s SDGs during the period of the new medium-term business plan and our unique value creation narratives for realizing them.

Toyo Tire Corporation will celebrate the 75th anniversary of its foundation in August 2020. This could not have been possible without the most generous support from all of our stakeholders, for which I would like to express my heartfelt gratitude.
After the start of this year, the novel coronavirus infection (COVID-19) has spread across the world at an alarming rate. Restrictions on the movement of people have divided and slowed down the global economy, which in turn is disrupting the global society. Although there is still no telling what will happen next, we will use the pandemic as a learning experience to make efforts to enhance our staying power for the future, including re-constructing the foundation of supply chains, reinforcing the framework for global cooperation and synergy, and establishing new ways of working.
Everyone at the Toyo Tire Group is determined to overcome this difficulty as they continue to challenge themselves. I hope that you will continue to have high expectations of us. Your kind support in this regard will be much appreciated.

STATEMENT OF CONTINUED SUPPORT BY THE CHIEF EXECUTIVE OFFICER

June 2020

To our stakeholders:
I am pleased to confirm that Toyo Tire Corp. reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.
In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Takashi Shimizu
Representative Director and President
Toyo Tire Corporation