Yokohama Rubber announces new medium-term management plan, Yokohama Transformation 2026

Hiratsuka, Japan—The Yokohama Rubber Co., Ltd., announces its new medium-term management plan, Yokohama Transformation 2026 (YX2026). The new plan will be implemented over the next three years, 2024–2026, as the successor to Yokohama Transformation 2023 (YX2023), which guided the Company over the past three years, 2021–2023.

Under YX2026, Yokohama Rubber will further advance the “exploitation” of the strengths of its existing businesses and the “exploration” of new value and complete the transformation begun under YX2023 while being mindful to not leave any negative legacies for the next generation. Under this guiding philosophy, management will resolutely implement the growth strategies established in each business as it aims to achieve “Hockey Stick Growth” during YX2026 to fiscal 2027. Management’s targets for fiscal 2026, the final year of YX2026, are sales revenue of ¥1,150 billion, business profit of ¥130 billion, a business profit margin of 11%, and ROE of more than 10%.

Under YX2023, Yokohama Rubber strongly promoted its basic strategy of “exploitation” of the strengths of its existing businesses and the “exploration” of new value that will meet the needs of customers and society in an era of great change for the automotive industry across all the Company’s business domains. In addition to strengthening product development, production, and sales, the Yokohama Rubber promoted acquisitions, business restructuring, and other measures to strengthen its competitive strengths in each of its markets. Most notably, the Tire Business achieved a major transformation of its business structure by strengthening its highly-profitable off-highway tire (OHT) business to bring its consumer tire–commercial tire sales composition in line with the global tire market ratio of 1:1, instead of the previous 3:2 ratio weighted toward consumer tires. In addition, Yokohama Rubber steadily implemented measures to enhance asset efficiency, including the sale of certain businesses and subsidiaries as well as cross-shareholdings and idle assets. The cash proceeds from these sales were channeled into strategic investments targeted at fueling growth that would increase Yokohama Rubber’s corporate value. As a result, during the three years of YX2023, Yokohama Rubber achieved record high sales revenue and business profit every year, establishing a solid foundation for continued strong growth during the new medium-term management plan YX2026. In fiscal 2023, sales revenue totaled ¥985.3 billion, below the November 2023 upwardly revised target of ¥1 trillion but well above YX2023’s initial target of ¥700 billion. Business profit of ¥99.1 billion and a profit margin slightly above 10% are both all-time highs. In addition, cumulative cash flow from operations over the three years of YX2023 totaled ¥267.2 billion, well above the plan’s target.