• Review manufacturing systems at home and abroad
  Build the optimum manufacturing system to streamline with shifting and integrating manufacturing products including overseas sites.
• Reduce employees in manufacturing operations meeting a reduction of manufacturing and transfer employees from administrative departments to manufacturing departments.

• Improve manufacturing systems at home and abroad
  Build the optimum manufacturing system to streamline with integrating domestic sites, building plants for after-service parts, shifting and integrating manufacturing products sites including overseas sites.
• Reduce employees in manufacturing operations meeting reduction of manufacturing and transfer employees from administrative departments to manufacturing departments.
• Reduce operations and shift operational system
  (ex.) 8 hours ・2 shifts X 5 days/week → 10 hours ・1 shift x 4 days/week

* About 300 employees in manufacturing departments (5,100 employees as of the end of September, 2008) centering on irregular employees were reduced by the end of December, 2008. In addition, about 500 employees will be reduced by the end of March, 2009. (Total reduced numbers are 800 employees after the end of September, 2008)
* Moreover, about 800 employees will be reduced depending on car manufacturing plans for FY2009 and downturn in the economy.

• Investment plan of 104 billion yen in sum total for 3 years in the medium-term management plan ’08, starting in FY2008 is shrunk to 54 billion yen. Review enhancement plan in tire manufacturing capacity and maintain the current supply capacity.

* Reduce 48 billion yen form facility investment (tangible only) in sum total for 2 years, FY2009-2010.

• Hold down enhancement of TNA the 3^rd phase manufacturing capacity and postpone building Asian manufacturing plant.

• Reduce 4 billion yen from total inventory of tires by the end of March, 2010 in plants and sales companies at home and abroad.

• Integrate sales sites, logistics sites and offices in Kansai areas and sell out the old sites.

• Spread Activities for reducing manufacturing costs (Project for time shortening
  of vulcanization, procurement tools, rationalization of materials, and automation, tec.) globally in tires and DiverTech businesses

• Reduce advertisement expenditures and sales promotion costs with the cancelling of events including Tokyo Motor Show etc., review TV commercials and outdoor advertisements and concentrate on our own ground, motor-sports activities.
• Reduce drastically both domestic and overseas business trips using TV or telephone conference systems. Business trips with stays in Japan are prohibited in principle. Reduce travel expenditures.
• Review and reduce all expenses including Halve executive cars, reduce drastically expense accounts, and shrink repair expenses (Stop construction projects at year-end and new-years, do it on weekdays).

• Shrink personnel costs with a rise in business efficiency by business reform, reduce conference costs, overtime work and holiday work
• Reduce compensation for directors...Expand reduction after February, 2009 continuing from October, 2008
• Salary and annual bonus...Managers got reduced in second half of FY2008 and continue and expand reduction after FY2009
  For members of the labor union, plan to negotiate with center of the labor union.
• Reduce about 200 employees from managers and administrative personnel including sales and technology of Toyo Tire & Rubber Co., Ltd. (1,900 employees as of the end of December, 2008) by the end of March, 2009, due to re-organization of full-time employees and the reduction of irregular employees.
• Build sales system meeting sales volumes and size to reduce about 200 employees at home and overseas sales subsidiaries (About 2,200 employees as of the end of December, 2008) by the end of March, 2010.
• Additional reduction of administrative personnel, assist manufacturing departments or brief shutdown could be considered depending on the future. demand trends.

• Integrate domestic and overseas replacement tire divisions
• Spread the NITTO brand globally

• Enhance collaboration of anti-vibration rubber business
• Full-fledged spin off rigid polyurethane business into a separate company
  Make a full-fledged start of sales, technological development and manufacturing activities at Soflan Wiz Co., Ltd. which specialized in urethane undiluted solution system, thermal insulation panels for the farming and livestock industries and ultra-low temperature rigid polyurethane form (including LNG tanks/tankers) from April, 2009.
• Finish withdrawing from urethane-based heat-resistant building construction material business by the first half of FY2009.
• Withdraw or assign inflatable life jacket business (Finished in September, 2008)
• Outsource production of some types of urethane mold products

• Sell out insurance agency businesses and integrate businesses in subsidiaries including real estate, recruiting and building maintenance
• Streamline and integrate subsidiaries of services

*Build a structure for lean operation to reduce manufacturing and business development.

The medium-term business plan ’08 is reviewed and drawn up at present.

*Soflan Wiz Co., Ltd.: Established in October, 2008
To integrate technological development, manufacturing and sales in the rigid urethane business, all were relegated to Soflan U-board Co., Ltd. Also, the company name was changed to Soflan Wiz Co., Ltd.