Deploy Environmental Products Globally Raise Market Visibility through New-car Fitments Strengthening Yokohama�fs Russian Presence Expanding Production Capacity Strengthening Local Operations in a Global Context

Our business in Russiais an interesting aspectof our growth strategy in tires. We set up a sales company in Moscowin two thousand five. And we have made steady progressin cultivating the Russian market. Demand has been robust,and our annual sales in Russia surged. They grew from less than five hundred thousand tiresin the first yearto more than one-point-six million only three years later. And we have secured a market share of more than ten percent in premium-grade tires. Russia is rich in natural resources,and we expect continuing growth in demand there. That is why we have decided to build a tire plantin the Lipetsk Special Economic Zone, in southwestern Russia. We are still working out the details of the project. But we expect to begin producing tires there in two thousand elevenat a plant that will be a showcase of environmental sensitivity. Our head start in Russian manufacturingwill reinforce our momentumin the hugely promising Russian market.