G:Compliance

Compliance organizational responsibilities

The president of Toyo Tire Corporation has made compliance the absolute highest priority within Group management, and we are dedicated to expanding and improving compliance systems.
We set up the Compliance Committee as one of the special committees under the jurisdiction of the Executive Committee to consult and investigate ways to promote compliance. The Chief Compliance Officer (CCO), compliance officers (CO), and compliance leaders (CL) play a key role in promoting compliance under our compliance officer system.
The Compliance Committee, chaired by the CCO appointed by the Board of Directors, meets quarterly in principle, and reports the results of its discussions twice a year to the Executive Committee, which is supervised by the Board of Directors.
The status of compliance promotion is also reported to the Board of Directors as necessary.
The CCO has the right to investigate, issue instructions and orders (including the suspension of operations and shipments), and make proposals regarding compliance-related issues for the Group as a whole, and COs have similar rights within their individual divisions.
CLs assist COs in promoting various activities in each workplace, and are expected to report any compliance concerns (including suspected issues) to their general manager and COs. When a concern is reported to a CO, an investigation is immediately launched and necessary action is taken, then a plan is developed to prevent reoccurrence. As a general rule, compliance concerns are disclosed within the company so that employees can be on the lookout for any similar issues, reconfirm legal regulations and company rules, and have a reference for how to respond if similar incidents do occur.
The Compliance Department provides support at all stages so that the system functions properly and effectively.
We will continue to regularly evaluate the effectiveness of our compliance initiatives and update them as necessary.

Preventing corrupt practices and bribery

The Group has established a Global Anti-corruption and Anti-bribery Policy, effective since 2019.
We know that corruption and bribery can result in social sanctions that significantly damage corporate value, so all executives and employees of the Toyo Tire Group, along with its suppliers and other business partners, work together to prevent any such incidents.
We have also included anti-corruption provisions in our CSR Procurement Guidelines, and ask our business partners to ensure compliance.
The Compliance Committee, Compliance & Legal Division, Procurement Division and the general affairs departments at each site are responsible for appropriately implementing initiatives regarding the operation, internal and external permeation, and monitoring of the basic policy.

Global Anti-corruption and Anti-bribery policy

• * Within Toyo Tire Corporation

Instilling the Group Charter of Corporate Behavior and Code of Conduct

We have established the Toyo Tire Group Charter of Corporate Behavior as a set of common principles for all Group companies that ensure our business activities are conducted in good faith, and the Toyo Tire Group Code of Conduct to help each executive and employee implement the Charter. The effectiveness of the Charter and the Code is regularly evaluated and verified, and any necessary revisions are resolved by the Board of Directors.
We have developed the Global Code of Conduct Handbook detailing the basic conduct that we expect from every Group executive and employee. The handbook has been translated into the local language of the countries and regions in which our bases are located in the effort to instill the principles of the Code into every Group employee and strengthen compliance.
In Japan, we conduct read-along training sessions every year for all executives and employees, including those of Group companies, using the Code of Conduct Handbook, a tool designed to instill the principles of the Code, and the Supplementary Reader that gives practical and specific examples relevant to front-line production and sales staff. Upon completing the training, each participant submits a written pledge to promote compliance.

• Toyo Tire Group Charter of Corporate Behavior
• Toyo Tire Group Code of Conduct
• Global Code of Conduct Handbook

Training in different regions

Our Group companies run their own training programs on themes that focus on the compliance risks that are relevant to their operations.
For instance, in 2025, our Malaysian subsidiary hosted a cybersecurity seminar run by the Malaysia Communications and Multimedia Commission and also held an interactive compliance awareness-raising event for employees. Meanwhile, our Chinese subsidiary invited external experts to conduct compliance-related seminars on information security and the legal liability associated with spreading false information. Finally, our subsidiaries in the United States and Mexico sought to enhance compliance by offering frequent compliance-related training opportunities throughout the year on a wide range of topics.

Conducting compliance awareness surveys

We conduct annual compliance awareness surveys to ascertain the degree of compliance-related awareness among employees and aid our future endeavors.

2025 compliance awareness survey result: 87% response rate (90% in 2024)

1. Implementing activities to promote compliance

   Made one or more attempts to raise compliance awareness over the past year: 95% (95% in 2024)

2. Degree of compliance awareness and understanding

   Understand what compliance means: 86% (89% in 2024)Toyo Tire compliance: Instead of simply adhering to laws and regulations, we must comply with laws, regulations and internal rules, and be guided in our actions by a keen sense of ethics.

3. Degree of embedding of compliance

   Remain conscious of compliance when conducting own work activities: 94% (95% in 2024)

Comments from survey manager

Ten years have passed since the 2015 falsification of performance data for seismic isolation rubber bearings. We treated this past misconduct as a serious incident and have worked hard to prevent a recurrence and restore trust. A high level of awareness, understanding, and consideration of compliance issues was maintained throughout the survey in 2025, as in other years. These surveys show clear evidence of steady activities to promote compliance at each site despite various environmental changes, but they also clarify some ongoing issues that need to be improved. Going forward, we will steadily implement improvement initiatives and work with individual sites to explore activities more deeply and further enhance compliance awareness.

Whistle-blowing system

The Toyo Tire Group has been operating a whistleblowing system since 2006.
We have set up internal and external reporting hotlines to deal with compliance issues and other concerns that could escalate into crisis events. Group employees, retirees, and suppliers are encouraged to directly report any concerns or seek advice via these hotlines, facilitating a solid response in accordance with the Whistleblower Protection Act.
Managed by the Audit Department, the hotlines offer multiple reporting and consultation options via internal or external independent channels. Some hotlines can receive reports 24/7/365.
Any retaliatory action or harassment of whistleblowers is strictly prohibited, and if any such behavior is confirmed, disciplinary action may be taken against the perpetrator(s) as stipulated in the Company’s internal regulations.
We operate a system that makes it easier to raise necessary information to governance bodies. People can submit reports anonymously and the details of those reports are confidential and only shared with a small number of people involved in investigative or corrective action.
In fiscal 2025, the hotlines received 16 reports and consultations. While relatively many of them tend to be about internal rules, all are investigated swiftly and, where necessary, actions are taken to remedy the issue or prevent recurrence.
The Harassment Advice Desk has been established to help swiftly identify and resolve any incidents of harassment. The Human Resources Department oversees the desk, with harassment hotlines being set up and counselors assigned to offices across Japan to address any harassment-related issues. In addition to internal reporting hotlines, employees can also use external advice lines, and information about these services is posted on internal bulletin boards and in breakrooms to facilitate easy access. All internal counselors take part in annual harassment counseling training to ensure reports and consultations are handled appropriately.
In addition, we conduct training sessions for employees as well as managers and supervisors from time to time to promote awareness and provide correct information on how to prevent harassment. In fiscal 2025, the harassment hotlines received 23 reports, and all have been dealt with and investigated in accordance with the defined process for handling harassment cases. We have also set up a customer service center and web-based inquiry form for consumers, local communities, and other members of the general public.
Please refer to  Ensure the fundamentals of manufacturing: quality and safety  for details on our response to consumer feedback.

Awareness of the reporting hotlines in Japan

Preventing anti-competitive conduct

The Toyo Tire Group is building compliance frameworks and systems and promoting education and awareness-building activities to ensure thorough compliance with competition laws and regulations in individual countries. Specifically, we oblige our executives and employees in charge of sales to submit prior applications, follow-up reports and exclusion applications relating to any contact with competitors based on the Cartel Prevention Rules, as well as a written pledge regarding the upholding of antimonopoly laws. We also pursue various initiatives to ensure compliance with laws and regulations, such as establishing a Consultation Desk for Compliance with the Antimonopoly Act, and conducting training (including e-learning) for related parties.

Anti-corruption initiatives

The Group strives to ensure fairness and transparency as the foundation for conducting sound business activities.
We know that discovering any corrupt practices or bribery would risk not only potentially huge fines or the detention of involved parties, but also significant damage to our corporate value through the termination of transactions or the imposition of social sanctions. We work hard to prevent any such acts as part of our corporate social responsibility.
Specifically, we established the Toyo Tire Global Anti-corruption and Anti-bribery Policy and Anti-bribery Rules to reduce the chance of employees encountering incidents of suspected corruption or bribery, and we are constantly promoting awareness-raising activities to ensure these are properly applied in our operations.
In 2025, we conducted e-learning on anti-bribery themes for employees working for Group companies in Japan (who have a PC account).
The 2025 Corruption Perceptions Index (CPI) researched and published by the international NGOs Transparency International assesses the risk of corrupt practices in markets where the Group has business sites. We believe we must pay particular attention to our business activities in countries where the CPI is assessed to be lower than 50.
To prevent the corrupt practice of insider trading before it happens, we also conducted anti-insider trading e-learning for management-level employees (assistant managers and above) at Group companies in Japan.

• Global Anti-corruption and Anti-bribery policy
• 全球反腐败和反贿赂政策

Cases of corruption violations

In 2025, there were no cases of fines, penalties, or other legal punishments resulting from corruption.
Neither were there any cases of employees being dismissed due to breaching our internal rules on corruption.

Compliance violations

No criminal charges of corruption in any incidents related to compliance were reported to the Company in 2025.

Legal compliance in the environmental and socioeconomic fields

There were no sanctions imposed on the Group in 2025 for environmental or socioeconomic violations.

Violations Relating to the Health and Safety Impact of Products and Services

We remain committed to ensuring that the frauds we and our affiliates committed in the past will never be repeated, and are implementing preventative measures against recurrence. As of the end of December 2025, we had started changing the seismic isolation rubber in all of the 154 target buildings. We will continue the rubber replacement program, prioritizing safety during the work above all else.
There were no violations relating to the health and safety impact of products and services in 2025.
Click here for more information on the progress of our efforts to prevent a reoccurrence of this issue.