CSR Report of YOKOHAMA HAMATITE (HANGZHOU) CO., LTD. (YHHC) and YOKOHAMA HOSES & COUPLING (HANGZHOU) CO., LTD. (YHCC)

President’s Message

Although YHHC and YHCC have progressed favorably in production and sales in China since their incorporation in 2004, in FY2012, due to a decrease in sales of both construction machines and cars, reflecting the economy in China, sales of high pressure hoses of YHCC and hematite resulted in a decrease in comparison to the previous year.In FY2012, as for environmental activities, for the purpose of contribution to local communities, we conducted planting activities in May in “Shangyu, Zhejiang Province” and

in November, jointly with Hangzhou Yokohama Tire Co., Ltd., adjacent to us, as “the 3rd Hangzhou Forest Activities.” Not only employees but also many people participated from the regional administration and regional companies, etc., and it was very successful.In order to raise environmental awareness of every employee, we pursue true zero emissions energy savings, follow up of industrial waste reduction activities at environmental meetings each month.As stated above, under the environmental policy, “GD100: aiming at being a top level contributor in terms of the environment,” established by Yokohama Rubber, the company has been carrying out consistent activities here in China.

Tomoji Saito

Business activities:

Land Space: Number of employees:

Location:

YHHC: Production and sale of sealant for passenger carsYHCC: Production and sale of hydraulic hoses for construction machinery10,002 m2 (YHHC/YHCC 1st Plant 3,244 m2 (YHCC 2nd Plant, Lease)YHHC: 26 persons (as of December 31, 2012)YHCC: 92 persons (as of December 31, 2012)YHHC/YHCC 1st Plant: 310018 No. 12, No. 18 Main Street, Hangzhou Economic

Development Area, China

Administration DepartmentTel: +86-571-86725880 Fax: +86-571-86725793E-mail: yinli@yhhc.com.cn

Contact for consultation and complaints:

Safe and Healthy Workplace Environment

We conduct occupational disease assessments and occupational disease medical checkups once a year.

Education and Training for EmployeesOn November 12, 2012, YHHC and YHCC jointly conducted a fire-fighting drill and emergency treatment drill for chemical product leaks.

In case of disaster, we respond based on a <<Fire Emergency Response System>> and a <<Chemical Substance Leakage Emergency Response System>>.

Occupational Safety and Health Responses in case of disaster

Advancement of Environmentally Friendly Management

Environmental Management

Holding a joint environmental meeting of YHHC and YHCC every month and carrying out 3S safety patrols led to improvements in safety management and the level of environmental management of the plant.

Human Rights and Labor Practices

We also provide human rights education during education for new employees.For other employees, we give instructions on human rights by instruction of the President and at morning meetings by the plant Director. Naturally, we do not force employees to work overtime.

In recruitment advertisements, it is always specified, “regardless of gender.”Although we have yet to employ a disabled person, we pay disabled person compensation money (a total of two companies: about 50,000 RMB per year).

If any employee has been found to be involved in corruption, a disciplinary punishment committee shall be held to respond properly.

In particular, at the time of a contract with a new supplier, we conduct an audit for processes and quality and we respond by listening to requests and opinions in a timely manner.We always exchange information with existing suppliers.

Respect for Human Rights (Human Rights Policy) and Human Rights Education for Employees

Promotion of gender equality / Employment of people with disabilities

Corruption prevention Communication with suppliers

Credibility with our Business Partners

[1] We conduct audits of QAV from users.[2] We frequently carry out user visits by the sales staff.[3] We carry out user visits by the quality control department.

We respond based on a <<Claim Handling Manual>>

Communication with customers Response to complaints

Safety and Quality of our Products and Services

Advancement of Environmentally Friendly Management

Environmental data Status of Management of Chemical Substances

[1] Solvent amounts kept in a hazardous material warehouse are maintained at amounts less than the standard amounts.

[2] By quantifying usage each time, we manage by registration procedures.

[3] We educate employees about the MSDS of organic solvents.

[4] We report and register the annual usage with the public security office once a year.

[5] Disposal of waste organic solvents is outsourced to qualified disposers.

Noise, vibration, and odor

[1] Machinery and equipment are periodically inspected so as not to be sources of vibration and noise and sewage water treatment tanks of toilets are periodically cleaned.

[2] Noises and unusual odors are managed by commissioning to a qualified environmental appraiser once a year.

YOKOHAMA HAMATITE (HANGZHOU) CO., LTD. (YHHC)

Category FY2008 FY2009 FY2010 FY2011 FY2012

Waste emissions (t) 32 40 56 49 35

Proportion sent to landfill (%) ― 0.0 0.0 0.0 0.0

Energy use(oil equivalent: kl)

Electric power 47.3 55.1 57.8 57.4 46.1

Fuel 7.4 0.2 1.7 6.0 6.0

Total 54.7 55.3 59.5 63.4 52.1

Greenhouse gas emissions (1,000t-CO2) 0.12 0.12 0.13 0.14 0.12

Water use (1,000m3) 1.4 1.1 1.5 1.9 1.6

* FY: January to December* Greenhouse gas emissions were calculated based on the Calculation and Reporting Manual for Greenhouse Gas

Emissions jointly published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry, Japan.

YOKOHAMA HOSES & COUPLING (HANGZHOU) CO., LTD. (YHCC)

Category FY2009 FY2010 FY2011 FY2012

Waste emissions (t) 30 67 36 7

Proportion sent to landfill (%) 0.0 0.0 0.0 0.0

Energy use(oil equivalent: kl)

Electric power 43 81 92 81

Fuel 4 4 7 8

Total 47 86 99 89

Greenhouse gas emissions (1,000t-CO2) 0.107 0.193 0.22 0.20

Water use (1,000m3) 1.0 1.7 2.0 1.5

*FY: January to December* Greenhouse gas emissions were calculated based on the Calculation and Reporting Manual for Greenhouse Gas

Emissions jointly published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry, Japan.

Stakeholder Communication

Corporate Governance and Compliance

Relationship with local communities Major opinions and complaints we had received and our responses[1] A total of 62 persons, comprised of transferees, employees and families

participated on May 19, 2012 in planting at “Shangyu, Zhenjiang Province.”

[2] In 2012, we donated clothes, school goods and daily medicines to poor regions.

During the time of new employee education, compliance education is provided and also employees carry compliance cards to prevent violations.

Among the results of measurement of sewage discharge in September 2012, NH3 and N2 index exceeded the criteria, but after conducting cleanup of pipes and treatment tanks, all figures were within the criteria when they were re-measured on October 23.