About Toyoda Gosei

Value Creation Story

Value Creation Strategy

Foundation of Value Creation

Data

Business Overview
Since Toyoda Gosei’s establishment in 1949, we have been providing products and services with highfunctionality and quality based on our synthetic rubber, synthetic plastics and their formulation technologies incooperation with various stakeholders involved in development, design, procurement, production and sales.

FY2022 Results
Revenue

Operating profit¥951.8 bn¥35.0 bn

Profit attributable to owners of parent

FCF¥16.0 bn¥22.0 bn

Revenue by business area

Revenue by region

Weatherstrip
products¥107.3 bn(11.3%)

Europe and Africa¥27.3 bn

Functional
components¥154.8 bn(16.3%)¥951.8 bn(FY2022)

Interior andexterior
components¥353.6 bn(37.1%)

Safety systemproducts¥335.9 bn(35.3%)

Asia¥241.1 bn¥951.8 bn(FY2022)

Safety System
Products
Airbags

Steering wheels (with built-in airbags)

Instrument panels and components

Radiator grilles

Pop-up hood actuators

Interiors and Exteriors

Japan¥357.4 bn

Console boxes

Functional
Components
Plastic fuel filler pipes

Plastic turbo ducts

Brake hoses

High-pressure hydrogen tanks

The Americas¥325.8 bn
1

3

4
2

Number of locations by region

Number of employees by region

Europe and Africa
4 companies

Europe and Africa
1,231

Number of Group
companies
Asia
23
companies

Opening trim weatherstrips

Door glass runsJapan
17 companies

Japan
9,437
Asia
14,11662

Weatherstrip
Products

38,942(FY2022)* Consolidated companies

Other Areas
The Americas
18 companies

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The Americas
14,158LED products

Air purifiers(general industry products)

e-Rubber products

Re-S eco-brand

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About Toyoda Gosei

Value Creation Story

Value Creation Strategy

Foundation of Value Creation

Data

Initiatives and Progress toward the 2030 Business Plan

SS (Safety Systems)
Business Area
With our strength in product developmentusing world-class CAE technology*1, we
provide high-quality, low-cost airbags to all
regions to solve social issues and achievebusiness growth.
*1 Computer-aided engineering (CAE) analysis technology
in the mechanical design process

Issues
Product development in response to changing accident patterns
Developing a system to respond to the globally expanding market
Product development in response to the transformation of theautomobiles

Strengths
Product development using world-class CAE technology
Development and production bases covering an expanding
geographical area
Ability to propose system solutions that include airbags andperipheral components

Priority Initiatives for FY2022
In 2022, we were able to receive orders nearly at the forecast level by identifying target vehicle models, including key
models for major Japanese automobile manufacturers and BEVs for North American and Chinese automobile
manufacturers. In those orders, our new high-performance products, such as far-side airbags, received wide recognitionand has become an advantage in order-taking activities.
Enhanced Global Production System through Collaboration with Partner Companies
We purchase inflators and bag base fabrics, which are elemental parts of airbags, from specialized manufacturers who
are our partners. We share our growth strategies, including order receiving strategies, with our specialized manufacturers
and work together to strengthen our competitiveness and supply capabilities by improving development efficiency
through personnel and technology exchange, and by implementing shared local procurement and production in targeted
regions.
Sales Expansion through High Value-Added Products
Illumination that communicates status to theWith changes in vehicle body structure and cabin
driver in conjunction with ADAS andautomated driving
interior design due to the shift to BEVs, as well as
HOD*2 and HMI*3 for automated driving, there is a
growing need for steering wheels with different
designs and additional functions. We have also
developed steering wheels with irregular shapes
and high value-added steering wheels that
Ergonomic spoke angles
Designs that create an EV-like feelincorporate touch sensors and LEDs, and many
Built-in grip detection and heater function
automobile manufacturers have shown an interest
Figure 1. High value-added steering wheel concept
in these products.

IE (Interiors and Exteriors)
Business Area
We will conduct development of products andmanufacturing technologies that respond to changes
in automobiles (BEVs and subscription-based
services) and the diversification of user needs, and will
expand our business by developing environmentallyfriendly materials (including the use of recycledmaterials) and manufacturing facilities while being
environmentally conscious.

IssuesDevelopment of products and production technology inanticipation of changes in design and functional needs andfuture customer trends
Cost reduction and productivity improvements throughautomation and improved production technology
Provide value-added products in response to the trend
toward subscription-based services
Expansion of carbon-neutral material production facilities

Strengths

Capabilities to develop, design, and produce high quality decorative
variations, transparent products, and mechanical products
Factories equipped with the latest production technology for
major manufacturing processes (molding, painting, etc.) andnew manufacturing processes (hot stamping, etc.)

Priority Initiatives for FY2022
We developed the world’s first emblem that combines
millimeter-wave radar transparency and luminescencefunctions, which contributes to the advanced functionalityand designs unique to BEVs, and this led to its adoption in
Japan.
We began production of radiator grilles using the hot
stamping manufacturing method as a decorative variation
to meet customer needs, and proceeded to offer them toour customers.
In the midst of the ongoing parallel production by
manufacturers of a wide variety of different vehicles,
including HEVs and BEVs, we expanded the Seto Plant toenable a wider range of variations of large painted products
such as radiator grilles and back door garnishes, our main
products, that are highly functional and meet the designneeds of customers. In addition to improving productivity at
the plant, we are also working to reduce CO2 emissions bymaking the new building all-electric for implementing
manufacturing that is also environmentally friendly.

Luminescent millimeter-wave emblem

Hot-stamped grille
Reconstruction
section (Scheduled
to start operationin Feb. 2025)

Extension section (Scheduled to start operation in Dec. 2023)
Seto Plant (Image after construction of new building)*2 HOD: Abbreviation for hands-on detection. The system detects whether the driver is holding the steering wheel or has released the driver’s hands from the wheel andsends a signal to the vehicle side.
*3 HMI: Abbreviation for human-machine interface. A device that allows humans and machines (vehicles) to exchange information.

Development Concept

Future Initiatives toward 2030
Future Initiatives toward 2030
With an eye toward 2030, we aim to capture the second largest market share in the industry in order to contribute to
reducing the number of fatalities and injuries in traffic accidents.
In addition to existing customers, sales expansion efforts will focus on the growth regions of China and India. In China,
we are boosting production capacity by constructing a new plant in South China, and in India, we are strengthening ourdevelopment capabilities by enhancing R&D and ramping up production capacity by expanding the Neemrana plant.
To win out in the competitive field of seat belts andairbags, we will strengthen our competitivenessAirbagSeat belt
through collaboration with seat belt manufacturers
and by using CAE technology, which is one of ourstrengths. We will also conduct development of
Before collision
After collision
new concept occupant protection devices, such
The extent of injury inside the body, such as
A bag integrated into the seat belt
rib deformation, can also be verified by CAE
as lap airbags, that improve the degree of freedom
inflates to protect the occupantin cabin interior design and accommodate diverse
Figure 2: Development of airbag and seat belt set (CAE) Figure 3. Lap airbag
riding postures.

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We are aiming to expand our business by developing
products and production technologies that anticipatechanges in design and functional needs andcustomer trends (lighting, seamless design, etc.).
In response to the trend toward automobile
subscription services, we will strive to add value tointerior and exterior components by utilizing ouradvanced decorative technologies to add
interchangeable decorative elements and safetyfunctions.
To achieve carbon neutrality, we aim to expand theuse of ELV materials in our products and increase theproduction of recycled materials. We will also promoteuse of electric equipment and electrification (molding
machines, painting equipment) to reduce CO2
emissions.

Varying design expressions byluminescence/non-luminescence(+ light control)
Hidden functions (millimeter wave,
translucency) (body color paint)

Customer (Toyota)

Customer (Nissan)
Purchase/
Lease agreement

Used cars/Lease renewal

Used cars/Lease renewal

Second user

3 years
RECYCLED

Grade management products*

Third user

3 years
RECYCLEDRECYCLED

Replacement of parts and decorative elements

Value-added products (image)

Adding safety and functionality* Differentiated solutions that matchthe grade (car model grade)

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About Toyoda Gosei

Value Creation Story

Value Creation Strategy

Foundation of Value Creation

Data

Initiatives and Progress toward the 2030 Business Plan

FC (Functional Components)
Business Area
In addition to expanding global sales of fuelsystem products to meet vehicle weight reductionand emission regulations, we will enhancedevelopment of products for the increasing
number of electric vehicles, build production
systems, and aim for further growth throughnew environmentally-friendly businesses.

IssuesDevelopment of low-CO2 emission products for BEVs
(natural-derived materials, use of material recycling, more
lightweight designs, etc.)
Development of products for BEVs, development of fuelsystem products (including CN fuels, e-fuels, etc.), andsecuring production resources

Strengths
Development of environmentally-friendly products byleveraging our expertise in the rubber and plastic fields
Technology and manufacturing for high-quality production ofcritical safety parts
Global supply system

Priority Initiatives for FY2022

WS (Weatherstrips)
Business Area

IssuesEstablish a sustainable sealing product business despite theuse of rubber materials that are difficult to recycle due to theirhigh CO2 emissions
To meet the growing need for quietness due to the shift toelectrification while reducing product costs

We will shift to a sustainable business basedon carbon neutrality and circular economy,
and aim to solve social issues and secure
reliable profits through recycling andquietness technologies.

Strengths
Rubber desulfurization and regeneration technology
Product development and evaluation technologies that
contribute to quietness improvement by leveraging
knowledge in the rubber and plastics fields

Priority Initiatives for FY2022

We are implementing an all-round strategy for BEVs and FCEVs byinvesting resources in cutting-edge development and capital investment.
We have brought to market large high-pressure hydrogen tanks for FCEV
trucks that run on hydrogen, and we expect needs to grow for thesetanks in the future. The tanks are being used in the mass-market fuel cell
Large high-pressure hydrogen tanklight-duty trucks that CJPT*, a joint partnership in which Toyota Motor
Large high-pressure hydrogen CJPT’s mass-market fuel cell
Corporation, Isuzu Motors Limited, and other companies have invested, is tanklight-duty truck
introducing to the market.
Commercial vehicles such as transport trucks are required to have a long cruising range and to fill up in a short time, andso FCEV trucks are expected to become widely used. We will contribute to achieving a hydrogen society through thedevelopment and production of high-pressure hydrogen tanks, a key component of FCEVs.
As for carbon neutral initiatives, we have successfully reduced the weights of our products through thinner wall thickness
and material substitution from metals to plastics by designing and developing manufacturing methods utilizing our
expertise in the rubber and plastics fields, which are our strengths.
* Commercial Japan Partnership Technologies Corporation

Future Initiatives toward 2030
We will expand our business in all directions, including the development of low-cost fuel system products forsealed tank systems for HEVs and PHEVs, cooling piping and battery pack products for BEVs, and full-scalemass production of tanks for FCEV passenger vehicles and commercial vehicles.
We will also effectively use rubber resources through our proprietary desulfurization and regeneration technology
to achieve carbon neutrality, as well as use naturally derived materials and recycled materials by leveraging our
expertise in polymer materials.

Initiatives Leveraging Our Strengths
We are conducting initiatives to reduce waste and CO2 emissions by utilizing our rubber
desulfurization and regeneration technology and reusing rubber waste from our plants.
In FY2023, the Morimachi Plant (Shuchi-gun, Shizuoka Prefecture) also obtained ISCC
certification, an international certification for sustainable products made from recycled
and other renewable materials, to provide products with high environmental value by
meeting growing demand for recycled products due to growing environmental
awareness.
Furthermore, in order to enhance product added value, we are continuously working
together with the Experimental Department to develop quietness technologies. We
identify vehicle weaknesses that contribute to quietness, and develop and propose
quietness-enhancing products that improve these weaknesses.
Also, to improve our manufacturing capabilities and profitability, we are implementing
automation of processes and cost reduction
initiatives through elimination of processes
requiring high skills. In FY2022, we started
1
3
mass production of glass run products,
which are used in Lexus.

Recycled rubber produced fromour proprietary technology
Cross-section

Conventional productDeveloped product

Inside the car

Inside the car

2
Outside the car

PowertrainsFunction

Storage,control,
supplyGasoline
vehicles

HEV
PHEV

BEV

FCEV

Expansion of hydrogen tank business

Battery cases

Mobility
Plastic fuel filler pipes

Expanded
volumeCooling
Cooling piping

50

Energy infrastructure
For households

FC stack manifolds
Electric vehicles withhigh cooling needs
require about fourtimes the length ofpiping compared togasoline vehicles

Noise

Future Initiatives toward 2030

Lifestyles
ChangeOutside the car

Communities/
society

High-pressurehydrogen tanks
Fuel tank peripheral parts

Noise

Improved
soundinsulation

Hydrogentanks

Passenger vehicles

To further promote carbon neutrality and circular economy, we aim to improve the quality of recycled rubber andincrease the amount of recycled rubber produced.
At the same time, we will work to further reduce CO2 emissions and improve the recycling rate while conducting
studies on switching some products to plastics according to the characteristics of the products.
In addition, we aim to improve overall business profitability by developing technologies to expand the scope of
use of recycled rubber and plastic materials and by developing sealing structures that maintain high quietness
performance and cost competitiveness.

Tanks for commercial vehicles; trains and ships

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Initiatives and Progress toward the 2030 Business Plan

Life Solution BusinessIn addition to expanding our LED businesses,
including UV-C, we are conducting initiatives
to develop businesses for new fields such as
power semiconductors.

Issues Further expand our industrial machinery parts and LED
business and increase sales Accelerate establishment of technologies for quick businessdevelopment in new fields

Strengths
 Knowledge of LED field and materials
 Industry-academia-government collaboration

Priority Initiatives for FY2022
UV-C LED BusinessWe have been developing various products that sterilize water and air using UV-C LEDs,
which are effective in eliminating viruses and bacteria, and have developed a water
purification unit with a compact design that is one-third the size of conventional units. This
product is being used by major home appliance manufacturers and is installed in EcoCute,which was developed against the backdrop of the recent increase in hygiene awareness.
We will continue to expand our lineup of water purification units that can efficiently sterilize
water according to the specific application and performance required by our customers.
Our UV-C LEDs enable sterilization even in confined areas where it could not be done
before. In the future, we will contribute to mercury-free and energy-saving designs byreplacing mercury lamps.

 High sterilization performance(sterilizes 8 ℓ of water in 1 minute) Uses LED cooling by runningwater for enabling compact size.
Can be installed in confined spaces.
UV-C LED

Sterilizes water by
irradiating deep ultraviolet
rays inside the unit

Compact water purification unit

Power Device Business
Power devices are widely used to control electric power in industrial
equipment, cars, home appliances, and other equipment. In order toachieve carbon neutrality throughout society, next-generation power
semiconductors that can reduce power loss during control are expected
to be adapted for practical use in a growing number of applications. GaN
power semiconductors are characterized by high-speed operation, but
their application in a wider range of fields requires higher voltages (higher
power). Following last year’s announcement of the successful fabricationof 6-inch seed crystals, we announced operation verification of theworld’s top-class high-voltage, high-speed horizontal GaN power
semiconductors. (June 2023)

Newly-developed GaN
power semiconductor

Driver circuit board with GaN
power semiconductors

Used inside
dotted areas(6 mm height × 4 mm width)

On/off operation confirmed in one millionth of
a second at 24 kW (800 V × 30 A) power

GaN power semiconductor and driver circuit board
with GaN power semiconductors

Future Initiatives toward 2030
To establish the above products as our mainstay products, we are steadily developing them according to theirrespective plans, but for UV-C LEDs, there are issues to be addressed in module design, production
preparation capability, and exit strategies.
In the area of power devices, the challenge is to improve the degree of technological completeness andestablish a supply chain with an eye on finished marketable products. In the area of new value creation, we aredeveloping a microwave power supply, but there are issues in system development, quality assurance, andproduction system.
We will work to resolve these issues by efficiently accelerating our efforts to realize our goals.

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