Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. The advantage of OJSC SEZ “Lipetsk” for foreign investors Report of LLC “YOKOHAMA R.P.Z.” Production of Automobile Tires “Yokohama” November 6, 2013 IX International Investment Conference “Lipetsk Region: Development through Investment” LLC ’YOKOHAMA R.P.Z.” General Director Shigeru NAKANO

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Fact of the plant “Yokohama” Company name : LLC YOKOHAMA R.P.Z. [ ООО «ЙОКОХАМА Р.П.З.» ] Shareholders : Yokohama Rubber Co., Ltd. 80 ％、 ITOCHU Corporation 20 ％ Products : Passenger Automobile Tire Production : ann.1.4 million units (Phase 1) Land : 29ha (including additional land plot for extension). Construction : Started in March, 2010 Commercial production : in 2011 Employees : ca. 580 persons (Phase 1) Investment : ca. 6,5 billion Rubles （ Phase 1 / ca. 149 million Euro ） Market : Russia (Replacement) 80-90% / Export 10-20% (Plan)

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Investigation on construction site Started to study the investigation on the construction site in Russia at the beginning of 2008 On investigating, excluded the site at the city of Moscow, Moscow region, the city of St. Petersburg, and Leningrad region as main foreign investors have already built their plants. Taking into account that the major tire market exists around the city of Moscow and the western side of Russia and so, taking into account the distance to the market, we started to visit and investigate 21 candidate sites in 6 regions around Moscow area from July, 2008.

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Candidate construction sites we visited Other candidate sites – same as above One candidate site - Just a field without any infrastructure

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Investigation on SEZ On investigation on the construction site, we recognized there were 2 SEZs of industrial and production type 2 Federal SEZs of industrial and production type are located at –Lipetsk region, Gryazi district –Republic of Tatarstan, Elabuga We decided to visit SEZ in Lipetsk region in September, –We compared 2 SEZs and got more interest in SEZ in Lipetsk region because of the distance to the market.

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. First Visit to SEZ “Lipetsk” September, 2008 ） Glass factory (Russian)Heat exchangers factory (Italian) Cable Bridge for Electricity Road Leveled Land Administration Building

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Study of lead time and our case Study of Lead Time Candidate Site Lead Time (max.) Preparation for Industrial Land → Apply for Infrastructure → Installation of Infrastructure → Apply for Permits → Start Construction → Complete Construction ICase A 48 months 3-6 months 6-12 months 12 months IICase B 42 months Done 3-6 months 6-12 months 12 months III Private Technopark 36 months Done 6-12 months 12 months IVSEZ24 monthsDone months12 months SEZ Lipetsk 34 months Done 15 months (actual) 19 months Dec. '08 ～ Mar. '10～ Sept. '11 Our case

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Comparison between SEZ “Lipetsk” and other sites SEZ in LipetskPrivate Technopark APrivate Technopark B Infrastructure ◎△△ Installed to the boundary of the territory of residents Planned, but takes 1 year to complete Years to complete construction ○ △△ 2 years3 years Electricity access charge ◎×× Not required100 million ruble83 million ruble Land cost ( if you purchase after the construction ) ◎×× 203 thousand ruble/20 ha400 million ruble/20ha167 million ruble/20ha Import Duty on Equipments ◎△△ FreeInvestment in Kind VAT on Equipments ◎ ○○ FreeReturned after sales Import Duty and VAT on raw materials ○ ×× To be paid on selling products Corporate Tax ○○○ Exempt ion for 5 years Labor Force ○ △△ 500,000 people/Lipetsk120,000 around the area90,000 around the area Distance to Moscow △ ○ △ 450 km100 km300 km Living standard for foreigner ○ △× Capital of Lipetsk regionVery small townSmall town

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Conclusion as of today To select SEZ “Lipetsk” as our construction site in Russia was the right decision so far because: 1. You can complete construction of your plant shorter than at other sites. 2. You can enjoy the privileges provided to the residents of SEZ 3. You can expect the full support of the governmental organizations such as Ministry of Economic Development, Administration of Lipetsk region, OJSC “SEZ”, OJSC SEZ “Lipetsk”,etc. The support from these organizations helps us to solve any issues and problems and we really appreciate it a lot.

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Visit of Mr. Nagumo, President of Yokohama Rubber Co. （ Nov. 25, 2008 ） Together with the Governor, Mr. Korolev At Lipetsk AirportAt the site At the administration building of SEZ Lipetsk Meeting with Lipetsk Administration members

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Ground Breaking Ceremony Speech First Stone Ground Break Kagami-Biraki ( Breaking of Sake Barrel )

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. “BluEarth” – new eco-tire concept by Yokohama What is “BluEarth”? “BluEarth” is an eco-tire concept and a new product line introduced by Yokohama in It is a concept of environmentally-friendly, human-friendly and socially-friendly tires. Bluearth tires realize the top fuel-efficient performance by improving the vehicle fuel- savings and have enhanced grip performance on the wet road due to their specific structure and components (nano- blend compound, orange oil, etc.). What is “ BluEarth ” ? For environment: Achieving superior fuel saving to reduce CO 2 emissions. For humanity: Solid safety and superior comfort For society: Lowered external car noise level

Copyright © 2010, THE YOKOHAMA RUBBER CO., LTD. All rights reserved. Thank you !