The advantage of OJSC SEZ “Lipetsk” for foreign investors Report of LLC “YOKOHAMA R.P.Z.”

1. Theadvantage 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 DirectorShigeru NAKANO

2. 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% / Export10-20% (Plan)

3. 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. Investigation on construction site

4. Candidate construction sites we visited One candidate site - Just a field without any infrastructure Other candidate sites – same as above

5. 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, 2009. • We compared 2 SEZs and got more interest in SEZ in Lipetsk region because of the distance to the market.

6. First Visit to SEZ “Lipetsk” September, 2008） Administration Building Cable Bridge for Electricity Leveled Land Road Glass factory (Russian) Heat exchangers factory(Italian)

7. Study of lead time and our case Our case

8. Comparison between SEZ “Lipetsk” and other sites

9. 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. Conclusion as of today

10. Visit of Mr. Nagumo, President of Yokohama RubberCo.（Nov. 25, 2008） At Lipetsk Airport At the site Together with the Governor, Mr. Korolev Meeting with Lipetsk Administration members At the administration building of SEZ Lipetsk

11. Ground Breaking Ceremony First Stone Speech Ground Break Kagami-Biraki ( Breaking of Sake Barrel )

12. “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 2011. 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 CO2 emissions. For humanity: Solid safety and superior comfort For society: Lowered external car noise level

13. Thank you !