Yokohama Rubber Co., Ltd.'s newly announced medium-term management plan, Yokohama Transformation 2026 (YX2026). Aimed at guiding the company through significant growth and transformation from 2024 to 2026, this plan builds on the successes of its predecessor, YX2023, and sets ambitious targets for sales revenue, business profit, and sustainability efforts.
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What is Yokohama Transformation 2026 (YX2026)?
YX2026 is Yokohama Rubber Co., Ltd.'s new medium-term management plan, set to run from 2024 to 2026. It aims to further exploit the strengths of existing businesses, explore new value, and complete the transformation begun under the previous plan, YX2023, without leaving negative legacies for future generations.
What are the financial targets for Yokohama Rubber by the end of YX2026?By fiscal 2026, Yokohama Rubber aims to achieve sales revenue of ¥1,150 billion, a business profit of ¥130 billion, a business profit margin of 11%, and a return on equity (ROE) of more than 10%.
How did Yokohama Rubber perform under its previous plan, YX2023?
During YX2023, Yokohama Rubber achieved record high sales revenue and business profit each year, with a notable transformation in its Tire Business and enhanced asset efficiency. In fiscal 2023, sales revenue was ¥985.3 billion, and business profit was ¥99.1 billion, both all-time highs.
What are the key growth strategies in YX2026 for the Consumer Tire business?
The Consumer Tire business will focus on maximizing the sales ratio of high-value-added tires, enhancing brand value, and implementing the "1-year plant" challenge to bring new plants online quickly and efficiently.
How does Yokohama Rubber plan to address the Commercial Tire market in YX2026?
For the OHT (Off-Highway Tire) business, Yokohama Rubber plans to strengthen its market position with a multi-brand strategy and expand its Interfit tire maintenance service. In the TBR (Truck and Bus Radial) business, it aims for profitable growth by strengthening sales in regions protected by antidumping and countervailing duties.
What are the plans for the MB (Multiple Business) segment under YX2026?
The MB Business will focus on restructuring and profit-improvement measures, particularly in the hose & couplings and industrial products businesses, aiming for a 10% business profit margin in fiscal 2026.
How will Yokohama Rubber approach technology and production in YX2026?
The company will focus on low-cost, speedy development of quality products, including OE tires for premium cars, and implement the "1-year plant" challenge to speed up tire development and production.
What are Yokohama Rubber's sustainability goals under YX2026?
Yokohama Rubber aims to reduce its Scope 1 & 2 greenhouse gas emissions by 30% by 2026 and 40% by 2030, increase the use of sustainable materials, and consider raising its 2030 sustainable materials ratio target to 40%.
What is Yokohama Rubber's financial strategy for YX2026?
The company plans to pursue strategic investments for growth, improve asset efficiency, create an optimal capital structure, and allocate significant funds to strategic and operational investments while aiming to steadily increase dividends.
