Toward the Accomplishment of Our Midterm Plan

Toward the Accomplishment of Our Midterm Plan 2017.2

Centralized Organization at Japan HQ 3-Pronged Regional Organizational Structure Enhancement of R&D, Production and Sales Networks in Europe & North America Acquisition of Overseas DUNLOP Brand Businesses Acquisition of Major UK Tire Sales Company Great Progress Toward the Accomplishment of Our Midterm Plan 1

Acquisition of Overseas DUNLOP Brand Businesses Agreement with the UK Company: Sports Direct International (SDI) DUNLOP Trademark Rights Tires With this agreement, SRI goes from being the licensee to being the owner of DUNLOP trademark rights in 86 countries, including countries where we have production bases, such as Thailand, Indonesia, Brazil and South Africa. Sports/Industrial Products Territory: Worldwide Products: Expanded to All Products (Unless Other Licensee Already Exists) DUNLOP Brand Sporting Goods Business Production & Sale of Sporting Goods DUNLOP Brand Licensing Business Sportswear, Shoes, Bags, Glasses, Watches, Umbrellas, Etc. Excludes Japan, South Korea and Taiwan, where our Group already owned the trademark rights to the DUNLOP brand. 2

Tire Business Before Acquisition After Acquisition Owned by SRI Owned by SDI SRI now owns the trademark rights to the DUNLOP brand for tires everywhere except for Europe, North America, India and Australasia. 3

Sports/Industrial Products Before Acquisition After Acquisition Owned by SRI Owned by SDI SRI now owns the trademark rights to the DUNLOP brand for sporting goods and industrial products worldwide. 4

Thanks to this latest acquisition, SRI is now able to take the initiative in developing our global DUNLOP brand business. We will work to further enhance the overall value of the DUNLOP brand through comprehensive coordination between our Tire Business, Sports Business and Industrial Products Business. DUNLOP International Founded on February 1 Company Name Location Representative DUNLOP Sports International, Ltd. 3-6-9 Wakinohama-cho, Chuo-ku, KOBE Hidekazu Nishiguchi 5

Acquisition of Major UK Tire Sales Company Acquisition of Micheldever Group Ltd. (MD) Scotland Company Name Micheldever Group Ltd. Edinburgh Location Winchester, Hampshire, England Northern Ireland Representative Duncan Wilkes Wales Manchester England Business Operations Wholesale and Retail Sales of Automotive Parts and Tires for Passenger Cars, Motorcycles and Agricultural Equipment Winchester London Sales Approx. 320M Pounds (46.4 Billion Yen) Fiscal Year Ended March 2016 The contents of the above table are based on data provided by Micheldever Group. Business Expansion in Europe is one of the major themes of our Group s ongoing business expansion efforts. 6

The UK is the Second Largest Tire Market in Europe, After Germany European Tire Market Size (Unit: 1 Million Tires)) Other 59 Sweden/Norway/Finland 12 Poland 13 Spain/Portugal 24 Italy 29 Germany 59 France 36 UK 37 MD Maintains a Very Large Share of the UK Market Supplies Wholesale Tires to Over 6,000 Retailers & Garages Operates Around 100 Directly Managed PROTYRE Retail Shops Annual Sales: Approx. 6 Million Source: LMC Automotive PROTYRE Retail Shop Our acquisition of MD will greatly contribute to our future efforts to increase FALKEN s brand presence and market share, not only in the UK, but throughout Europe. 7

MD Acquisition Procedure Completed on February 10 With a new management system in place, we will work to expand our share of the UK market at an accelerated pace. 8

Progress of Efforts Being Undertaken in Each Region Europe Africa Asia Pacific North/South America 9

North/South America 10

North/South America USA Technical Center (Tonawanda, New York) USA Tire Test Course (Huntsville, Alabama) Technical Center Images Fully Operational at Our USA Factory from January 2017 4W Vehicle Tire Evaluations to Begin in March 2017 We are moving forward with the establishment of an R&D infrastructure that will allow us to rapidly release competitive, highvalue tires that account for the needs of North American customers. 11

North/South America USA Factory Increase in Production Capacity for Passenger Car & Light Truck Tires with a Focus on High-Demand SUV Tires Brazil Factory Increase in Production Capacity for Passenger Car & Light Truck Tires + Shift to Local Production of Truck & Bus Tires to Respond to Increasing Demand Passenger Car & Light Truck Tires 5,000/Day 10,000/Day (End of 2019) Truck & Bus Tires 500 Per Day (Production Start: March 2019 ) Passenger Car & Light Truck Tires 15,000/Day 18,000/Day (End of 2019) 12

North/South America VW Golf Alltrack Sponsorship Contract with Major League Baseball Renewed for 2017 JEEP Compass Chrysler 200 JEEP Patriot Chrysler Pacifica Enhancing the Value of the FALKEN Brand Steady Progress in Expanding OE Fitment 13

Europe Africa 14

15 Europe Africa Turkey Factory Currently Steadily Increasing Production Capacity South Africa Factory Currently Enhancing Production Capacity with a Focus on High- Performance Tires 30,000/Day (End of 2019) 10,000/Day 14,500/Day (End of 2017)

16 Europe Africa Europe Technical Center Germany Hanau Technical Center Images Full-Scale Operation to Start in August 2017 We will continue working to release competitive, high-value tires that account for the needs of customers in Europe and Africa.

17 Europe Africa Nürburgring 24-Hour Endurance Race Acquisition of Major UK Tire Distributor Shift from Sales System Centered on Germany to Strategic Country-by-Country Sales System throughout Europe FC Ingolstadt 04 (German 1. Bundesliga) Ongoing Sponsorship Agreements Continuing Efforts to Enhance the Value of the FALKEN Brand in 2017

18 Europe Africa SEAT Ateca Škoda Superb VW up! VW Polo VW Passat Steady Progress in Expanding OE Fitment

Asia Pacific 19

Asia Pacific Rapidly Responding to Tire Industry Fuel Efficiency Standards in China Working Toward Future Full-Scale Launch throughout Asia Increasing Our Presence in the Market for Environmentally Friendly Tires 20

Asia Pacific Strengthening the Presence of D-Guard Tire Shops, Our New Sales Channel in China Increasing the No. of Shops Carrying FALKEN Tires in China & India Tire Shop Image Increasing the No. of FALKEN Pulse Shops in Australia Tire Shop Image We are making steady progress in expanding the number of shops that carry DUNLOP and FALKEN tires in each country. 21

Japan In August 2016, we released the greatest studless tire masterpiece in DUNLOP history: WINTER MAXX 02, which achieves outstanding on-ice performance plus lasting performance over the long run. The combination of our Super Grip Nano- Fit Rubber and MAXX Grip Pattern improve on-ice braking performance by 12% while maintaining high performance for the service life of a tire. Our newly developed Suppleness Additive high-performance biomass material allows rubber compounds to maintain their initial suppleness for longer. WINTER MAXX 02 has received widespread acclaim from the market, leading to brisk sales. 22

Japan Our second tire developed using ADVANCED 4D NANO DESIGN, LE MANS V is a high-performance, fuel-efficient tire that provides unmistakably superior ride comfort. Our new SHINOBI TECHNOLOGY absorbs tire vibration while our proprietary Silent Core (specialized noise-absorbing sponge) reduces tire noise to provide significant improvements when it comes to providing a comfortable and quiet ride. <51 Sizes> <10 Sizes> The adoption of an asymmetric tread pattern improves resistance to uneven wear by 27%. Compared to Previous SRI Tires On Sale from February 2017 23

Japan Three Consecutive Years Sponsoring the Red Bull Air Race Chiba We are also continuing our sponsorship of the only pilot from Asia competing in the Red Bull Air Race World Championship: Mr. Yoshihide Muroya, who last year won his first ever race and placed 6 th overall in the series. Enhancing the Presence of the FALKEN Brand 24

Industrial Products Clean Rubber Vibration Dampers We are working to grow our business in European markets with Lonstroff AG, our Swiss medical rubber parts subsidiary, at the center of these efforts. We are steadily increasing sales of our MIRAIE vibration damping unit for housing. None of the buildings equipped with MIRAIE collapsed during the Kumamoto Earthquake. Infrastructure Products We are making progress in our efforts to meet the new demand for port improvement construction and other infrastructure projects in the lead up to the 2020 Tokyo Olympics. 25