TAMURA
RE P O R T
Integrated report

1-19-43, Higashi-Oizumi, Nerima-ku, Tokyo JAPAN 178-8511

2023
23

TAMURAR E P O R T

Transformation to create a robust future forthe 100th anniversary & beyond

Integrated report

2023
23
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Creating Tamura Group’s Value ��
Tamura’s History���������� 03
Tamura’s Products

05
Value Creation Process������� 07
Top Message������������ 09
Supporting Society, Industry, and Daily Life���Progress of the 13th Medium-termManagement Plan��������� 13
Message from the CFO������� 15

Corporate Slogan

The Tamura Group aims to be“your one and only company”〉Information Schema
Financial Information

Non-financial Information
Website●Financial Information

MISSION
Corporate Philosophy

MISSIONV I S I O N

The Tamura Group supplies an original range of products
and services, highly regarded in the global electronics
market, to satisfy the evolving needs of customers, employees and shareholders supporting the Group’s growth.

VISION

1
2

GUIDELINES

3
4

Tamura Group Code of Conduct

5●

T A M U R A

GUIDELINES

1. We attach great importance to partnership.
2. We attach great importance to nurturing a spirit of creativity.
3. We attach great importance to individuality.
4. We attach great importance to social responsibility.

TAMURAR E P O R T

2023
23

(this publication)

Editorial Policy The Tamura Group is a responsible member of the global
community and respects the laws and customs of thecountries in which it conducts business activities.
 The Tamura Group strives to protect the global environment,
conserve natural resources and promote recycling.

Human Capital����������� 31

R E P O R T

 The business of the Tamura Group is based ontechnologies that support rapidly diversifying customer
needs, with a special focus on high market value.

Period covered

Sustainability Strategy ������
Sustainability Strategy������� 24
Environment������������ 26
Supply Chain Management/
Quality/Social Contribution���� 30

S ummary of Consolidated Financial
Results● Financial Results Presentation● Corporate Governance Report etc.
● T he management of the Tamura Group is based on businesses
related to the requirements of the global electronics industry.

 T he Tamura Group evaluates its employees with fairness andhighly rates excellent performance and exceptional productivity.

Product Information
Company Profile● Sustainability●

Strategy by Business Segment���The Tamura Group at a Glance������ 17■ Electronic Components����� 19■ Electronic Chemicals/FA Systems� 21■ Information Equipment����� 23

This report is aimed at reporting value creation through the Group’sbusiness activities and main sustainability initiatives, and shall be
used as a tool for communication with stakeholders.
For detailed financial and sustainability-related information, please
visit the Group website.
April 1, 2022 to March 31, 2023
(Includes some activities in or after April 2023)

Month of publication

January 2024

Guidelines used
as reference

ISO 26000 Guidance Standards“International Integrated Reporting Framework”
International Integrated Reporting Council (IIRC)

Contact information

Corporate Governance Divisionhttps://www.tamuracorp.com/inquiry/index.html

Corporate Governance������
Directors������������� 33
Discussion on Corporate
Governance������������ 35
Corporate Governance������� 39
Risk Management/Compliance��� 44

Company Data
Main Financial and Non-financial Data�� 45
Summary of Consolidated Financial
Results for the Past 11 Years������� 47
Consolidated Financial Statements
Consolidated Balance Sheet�������� 49
Consolidated Statements of Income/Consolidated
Statements of Comprehensive Income����
Consolidated Statements of Cash flows����

Corporate Information
Company Overview/Global Network�����
Stock Information�����������

51
52
53
54

Creating Tamura Group’s Value

Tamura’s History

Strategy by Business

Sustainability Strategy

2024 will mark the 100th anniversary of our founding. Tamura’s unique electronics technology serves as the Company’s
foundation. We have always made an effort to anticipate changes to provide products that are in demand in the world.

(Billions of yen)
130

2024
The 100th anniversaryof our founding

❶
❻

120

⓫

©JAXA

⓬

⓲

110

⓰

Electronic Components

100

Corporate Governance

❷

90

⓭
80

❼
70

Sales

Electronic Chemicals/FA Systems

⓮
❸

60

⓱
50

❿

40

❹
30

❽

20

Information Equipment

❾
⓯

10

❺
0

1930

1940

Establishment Period
1924 (Photo ❶)1939

1933 (Photo ❷)1941 (Photo ❺)Tamura Radio Shokai established in Shinjuku,
Tokyo one year before the start of radio
broadcasting in Japan
Began sales of own brand electricphonographs

1935 (Photo ❸)Began in-house development of lowfrequency transformer

1937 (Photo ❹)Began sales of moving-coil microphones

03

TAMURA REPORT 2023

Tamura Corporation is established with
the intent of becoming a manufacturer ofworld-class products
Tamura Corporation’s Kashiwagi Laboratory
is established to develop products suchas communication instruments andrepeating coils, laying the foundation for the
Information Equipment Business

1944
The Oizumi Factory (currently the Head
Office) is completed in Nerima Ward, Tokyo

1950

1960

1970

Expansion Period
1955 (Photo ❻)Tamura compact transformer is used in thefirst Japanese-made transistor radio. The
Company begins full-scale mass productionof components designed for consumer-use
products

1956 (Photo ❼)Developed Solderite flux, Japan’s firstcompletely non-corrosive solder brazing
agent, and established a specializedchemistry laboratory within the Company

1980

Growth Period1972 (Photo ⓬)1962 (Photo ❾)1984

Began supplying power transformers for
consumer-level VTRs

Entered the low-power wireless device business.
Tamura wireless microphones installed atstadiums for the Tokyo Olympic Games (1964)

Began supplying high-frequency
transformers for televisions and VTRs due tothe proliferation of switching power supplies

Developed our first automatic soldering system

Began supplying switching-type external
power adapters for laptop computers andother portable devices

1968 (Photo ❿)1972 (Photo ⓫)Developed transformers and coils installed in
Ume (ISS), Japan’s first working satellite

2000

Digital Era

1961 (Photo ❽)Developed our first audio mixing console foruse as broadcast equipment

1990

1985 (Photo ⓭)

2010

2020

New Market Development

Medium- to Long-Term Vision

1994

2000

Succeeded in the practical application of apiezoelectric transformer using ceramics.
Began supplying LCD backlight inverters
used in laptop computers

Implemented comprehensive lead-freesolutions to promptly comply with
enforcement of the RoHS directive in 20062010 (Photo ⓱)1995 (Photo ⓮)Developed solder paste for semiconductor
packages, which is approved for use by amajor semiconductor manufacturer as asolder paste for CPUs

2003 (Photo ⓯)Began delivering audio mixing consoles
and other digital broadcasting equipment
to television stations in preparation for
terrestrial digital broadcasting

2009 (Photo ⓰)Began mass production of reactors designed
for hybrid vehicles

Developed solder resists for flexible PCBs.
These resists are used in smartphones,
tablet devices, etc.

2010 (Photo ⓲)Entered the market for large transformers
and reactors used for renewable energy andother applications

2013
Achieved the world’s first gallium oxide(Ga2O3) MOS transistor

Integrated report04Creating Tamura Group’s Value

Tamura’s Products Supporting Society, Industry, and Daily Life
Electronic Components

Electronic Chemicals/FA Systems

Information Equipment

For Wind/Solar Power Generation
and Data Centers

Strategy by Business

Sustainability Strategy

Corporate GovernanceTamura’s products have been supporting various industries and social infrastructure as materials, components, and devices that range from consumer products, such as automobiles and electronic equipment, to devices at manufacturing
sites and renewable energy and aerospace fields. From raw materials to complete systems, Tamura’s technologies havecontributed to safety and comfort contributed to the safety and comfort of people’s daily lives as well as the realization ofa decarbonized society.

In Aerospace

Large transformers and reactors

Transformers/Reactors
Designed for use inairplanes, rockets,and satellites, ourtransformers/reactors
offer the ultimate
environmental
resistanceContribute to efficiency improvement inrenewable energy generation and DC transmission
Current sensors/Power modules
Gate driver modules

In Industrial Machinery

Self-assembling material

Current sensors/Power modules
Gate driverWhite reflective material/Flux

Gate drivers areindispensable fordriving power
semiconductors that
control robots andindustrial machinery

In Eco-friendly Cars
Automotive reactors/coils
Provide optimal voltage
control for HEVs and
EVs

Transformers/Reactors

In Manufacturing Plants
Soldering systems
Reactors/Coils for EV and HEV battery chargers
Solder wires/Solder bars
Highly-reliable solder paste
Highly-reliable solder
paste which prevents
cracking even underharsh temperature
conditions

Equipment for soldering and joining electronic
components to printed circuit boards used in
all types of electronic equipment

At Telecommunication Base Stations
Highly reliable solder resists

Solder paste

In Air Conditioners andPower Conditioners

Solder resists
Substrate materials for telecommunication basestations supporting digital communication
systems

Reactors
Current sensors/Power modules

In Smartphones and Tablet Devices

Current sensors (oneshown in the top sectionof the photo) and power
modules (two shown inthe bottom section of
the photo) contributeto energy-saving in air
conditioners and power
conditioners

At Home
Human sensors/Environment visualization sensors

Sensors monitoring people’s activities and levelof comfort indoors

05

TAMURA REPORT 2023

Solder paste
Selective soldering material

In Convenience Stores and Shops

In Vending Machines

At Train Stations

In Broadcast Stations

LED lighting for signs and showcases

Product selection buttons/Price display units

Wireless microphone for railways

Audio mixing console
DECT-based Intercom

LED light sources contribute to energy savings forsigns and showcases at convenience stores and shops

We hold top share of
the vending machine
product selection
button market in Japanthrough our products
from our subsidiary,
Koha.

Supporting railway
operation by
providing a means
to communicate
arrival/departure
times and otherinformation

Our audio mixing
console is used
to adjust theaudio delivered
to viewers

Type 6 solder paste
allows for the solderingof 0201 components,
which are very small insize, to PCBs
Solder resists for flexible PCBs
Photo imageable coverlay coat (PICC)
Our solder resists offer
excellent flexibility andheat resistance andhave a proven trackrecord for their use inmobile devices
Integrated report06Creating Tamura Group’s Value

Value Creation Process

Strategy by Business

Sustainability Strategy

Corporate Governance

Creating ValueThe Tamura Group aims to increase corporate value by contributing to society throughour business activities and is making continuous efforts to create new values towards
solving social issues.

13th Medium-term Management Plan

Input

(FY2022 or as of March 31, 2023)➡ P.13Business Activity

Financial capital

Total assets

Operating profit➡ P.14

Business Areas Contributing to Carbon Neutrality

Shareholder’s equity ratio

47.1%

Manufactured capital
Capital expenditure

3.36 billion yen

Conserving energy
and resources●

Promoting diversity●Promoting workstylereform●Preparing for natural
disasters●

Responding to asuper-aging society●Co-existence withlocal community●Manufacturing bases
Japan:
Overseas:

15 manufacturing bases
Intellectual capital
Longstanding accumulation oftechnologies and know-how
R&D related expenses

3.51 billion yen
Human capital
Number of employees on aconsolidated basis

Strategic Markets

6%➡ P.19ROE

8%Power electronics
Mobility

Manufactured capital

IoT

Restructuring of areacompletion type global
production system

Sustainability Strategy

Environment
Human capital
Supply chain management
QualitySocial contribution

4,576 employees

Trusting relationship withstakeholders formed over the
99 years since our founding

Natural capital
Natural resources, such as
raw materials and energy

TAMURA REPORT 2023

Dust cores for high-frequency magnetic components
High heat resistant soldering materials for
power semiconductors
Thermal convection control technology for reflow equipment
Technology related to next-generation power semiconductors

Operating profit to net
sales ratio

5 manufacturing bases

Social andrelationship capital

07

Strong core technologies

6 billion yen or above

Electronic
Components

Corporate GovernanceCorporate Philosophy

➡ P.24

Materiality❶ S ustainable business growth❷ P roduct quality improvement❸ Proper supply chain management❹ C ompliance❺ F ulfilling workplace❻ C o-existence with local
community❼ E nvironmental protection &contribution to realizing adecarbonized society❽ Proactive information disclosure

Development of products
and technologies to support
the 100th anniversary of our
founding and beyond➡ P.21

Human capitalManager Ratios (Japan)
Female Managers:

10%Non-Japanese Managers:5%Managers Hired Mid-career:50%

Social andrelationship capital➡ P.33➡ P.01Intellectual capital

Electronic Chemicals/FA Systems

Aspiration for 2050

Realizing adecarbonized society●(FY2024)

Financial capital

111.8 billion yen

Importantsocial issues

Outcome

Output

SAQ implementation rate formajor suppliers

Information
Equipment➡ P.23100%

Natural capital
CO2 emissions reduction

33% or more

➡ P.09(compared to FY2013 level)

Integrated report08Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceTop Message

We will strive to improve our corporate
value by developing next-generation
technologies and products to realize our
Aspiration for 2050.
The Tamura Group is focused on achieving the targets of the 13th Medium-termManagement Plan in order to realize its
long-term vision “Aspiration for 2050.”
By aiming to realize a decarbonized society through our business activities, we will
not only increase our corporate value but
also contribute to resolving various social
issues.

Masahiro Asada
Representative Director, President & CEO

Achieving record net sales of 100 billion yen
In FY2022, the global economy was generally on a recovery
trend although unstable conditions continued due to soaring
raw material and fuel prices, exchange rate fluctuations, inflation, the decoupling between the U.S. and China, and partprocurement issues due to supply chain disruptions.
In the electronics market, automobile production declined
due to a shortage of semiconductors, and production ofsmartphones and PCs declined due to a rebound from stayat-home demand. Home appliances, including air conditioners, and industrial machinery, including robots, continued toexperience firm demand. Business performance increased
due to growth in electronic components sales in response toa backlog of orders that had increased due to difficulties inprocuring raw materials as well as the effect of the yen depreciation in addition to the promotion of sales price revisions.
As a result, the Group’s consolidated net sales for FY2022
reached a record high of 107.993 billion yen (up 22.3% yearon-year). Operating profit was 4.829 billion yen (up 208.6%
year-on-year), and net income was 2.047 billion yen (compared to a net loss of 84 million yen in the previous fiscal year),
returning the Company to profit.
There is concern that the global economy will also slow
down in FY2023 due to the progress of inflation and other factors. In addition, since the impact of the decoupling between
the U.S. and China has intensified pressure from European andAmerican manufacturers to withdraw from China, forcing us
to consider decentralizing our production bases, future conditions are expected to be uncertain.

Business strategy to realize our
Aspiration for 2050
The Tamura Group’s Aspiration for 2050 is to become “Aleading company for realizing a decarbonized society that is
highly valued in the global electronics market.”
The key to achieving this goal is business growth in areasthat contribute to carbon neutrality, such as power electronics, mobility, and IoT. We aim to realize our Aspiration for2050 by achieving great results with our with all of our threeyear Medium-term Management Plans while balancing ourbusiness strategy, which consists of two pillars (growth andefficiency), and sustainability strategy.
However, it is impossible to achieve this vision only with
our existing product lines. Therefore, we need to establish
new, world-leading technologies by 2030 and develop themto serve as new pillars of our business.
One of the main targets for this is next-generation power semiconductors. We are working on the development ofrelated materials, parts, and products. By developing theseproducts to create new businesses, we aim to make a leap

09

TAMURA REPORT 2023

forward toward 2050.
Since we are at the very beginning of that effort right now,
it can be said that we are at a very important turning point inour history.

Outlook for the Second Year of the 13th
Medium-term Management Plan
The slogan for the 13th Medium-term Management Plan is“Energize the Future 100,” which is an initiative that we are focusing on. These words express our determination to evolve
into a more powerful Tamura Group and to create a strong
and wonderful future for society as the first step toward the100th anniversary of our founding and, in the distant future,
the realization of our “Aspiration for 2050.”
In FY2022, the first year of the Medium-term Management
Plan, net sales exceeded 100 billion yen, a level which we
could not achieve until now, partly due to the depreciationof the yen.
In FY2023, the second year of the plan, demand in Electronic Components in the Electronic Components businesshas been sluggish due to an increase in inventory adjustments by customers while order backlogs still remain. In
addition, the tight supply and demand for semiconductors
is also affecting the production of unit products used todrive semiconductors. Although these conditions will continue in the first half of the period, we expect a recovery
from the second half of the period and beyond. Therefore,
it is important for the Company to quickly grasp changes
in demand and prepare a production system to respond to
those changes.
Although the Electronic Chemicals/FA Systems business has had a difficult start due to the sluggish smartphone-related market and weak demand in the Chinese market, demand is expected to recover gradually.
As the challenge is to strengthen the development of newhigh value-added products, we are currently working on thedevelopment of solder paste for next-generation semiconductors. We aim to launch this product during the periodof the next Medium-term Management Plan. If successful,our Electronic Chemicals/FA Systems business will evolve tothe next stage.
In the Information Equipment Business, we have recently
launched the NTX series next-generation audio mixing consoles. We are the only Japanese manufacturer of a full IP audio mixing console, and expect sales to expand, especiallyamong broadcasters.
The Group will continue to implement various measures
in FY2023 with the aim of achieving performance targets
for FY2024, the final year of the 13th Medium-term Management Plan and the year marking the 100th anniversary of
our founding.

Integrated report10Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceTop Message

Expectations for Tamura Group
employees
The strength of Tamura Group employees lies in their skills
cultivated over the past 100 years and spirit to never give up
on achieving their goals. On the other hand, they are not sosensitive to changes in the surrounding environment, so theytend to wait for instructions from their superiors and theirseniors.
Therefore, in order to actively increase communication
where employees in lower positions convey their ideas tothose in higher positions rather than having only “top-down”
style communications, I am asking for leaders and managers
to utilize various opportunities, such as town hall meetings,
where they can talk directly with employees so that they canchange their approach to communicating with them.
In addition, I expect all employees to “challenge themselves
without fear of change,” first changing their own team andthen the Company as a whole. We will actively recruit experienced personnel and revitalize the organization with talented
personnel who have gained experience outside the Company,
thereby promoting corporate culture reform.
For securing diversity in human resources, we are working
to increase the ratios of females, non-Japanese, and mid-career hires in managerial positions. With regard to female
managers, we will increase the ratio of female employees tostart with and promote them to managerial positions in linewith the trend of promoting the participation of women in
the workplace, aiming to increase the ratio of female managers to 10% by the end of FY2024. We are also increasing
the number of our female outside directors. With regard to
the ratio of non-Japanese managers, we have appointed two
non-Japanese as executive officers, and will actively promote
the appointment of non-Japanese employees to managerial
positions.
Furthermore, as part of job satisfaction reform that I am
personally leading, we will promote initiatives to improve
employee engagement with the aim of becoming a company that people admire and a company where people gather.
In particular, we will continue to focus on various measures
to instill “psychological stability,” which is the foundation forthe development of job satisfaction. In addition, to the surveythat we have been conducting in Japan, we will conduct anemployee engagement survey on a global basis for the firsttime, and will promote initiatives to improve engagement at
all Tamura Group sites, including overseas sites.
In order to realize job satisfaction reform, as President, I expect three things from employees. The first is “two-way communication,” which transcends age and position so that we
can understand each other’s opinions and grasp a sense of
the time to create an organization that is resistant to changes
in the business environment. The second is to have “healthy
ambitions.” I want employees to be willing to take on new
challenges and to do what they believe is important and11

TAMURA REPORT 2023

what they desire, even if it means sometimes clashing theirsuperiors. The third is to “set high-level goals.” Through hard
work over time and daily study, employees change themselves. By always maintaining an awareness of these three
things, I believe that diverse human resources will be able tofind job satisfaction and will be a major force in opening up a
new future for the Company.

Enhancing and strengthening ourgovernance framework
Our basic policy of the Group's corporate governance is tomaximize corporate value from the perspective of shareholders by emphasizing management efficiency and transparency
through compliance management based on high corporate
ethics as entrusted by shareholders. We place particular importance on risk management and internal control, and are
currently conducting risk assessments to establish a company-wide and systematic risk management system.
In June 2023, Tamura Corporation transitioned from a company with an Audit & Supervisory Board to a company with
an Audit & Supervisory Committee. The purpose of the transition is to strengthen the supervisory function of the Board of
Directors and to achieve more transparent corporate governance by having directors with voting rights on the Board of
Directors become Audit & Supervisory Committee members.
Although the Company has always been progressive in its
approach, we decided to further strengthen our governancestructure as we approach our 100th anniversary.
We also introduced a CXO system. Until now, the Company
has been split into separate business segments, so we havestrengthened our cross-sectional business promotion by implementing our “One Tamura” strategy. The purpose of the
CXO system is to develop this further and to enable the Company to work in a unified manner and respond flexibly to thedrastic changes of the times.
I want to see the Company build a robust governancestructure where the Executive Officer Committee, which iscomprised of the heads of divisions involved in business execution, and the Board of Directors are in proper contact witheach other and be mutually enhanced through execution
and supervision.

year of the Medium-term Management Plan, with net sales of
108 billion yen and operating income of 4.6 billion yen.
In response to this difficult situation, the entire Group is
working to improve sales and profitability, aiming to achieve
FY2024 target, the final year of the plan and the year marking
the 100th anniversary of its founding.
With regard to our sustainability strategy, we are implementing measures centered on the materiality defined in the
13th Medium-term Management Plan, including the review
of risk management mentioned above. We also reviewed the
Tamura Group Code of Conduct, which is the foundation for
implementing the Tamura Group Mission, part of the Corporate Philosophy of the Tamura Group. Although the Tamura
Group Code of Conduct was established in 2007, it was revised to comply with international standards to be in line withthe changing times. We will work to ensure that all Group employees are familiar with it.
With regard to the environment, we worked to further expand the lineup of products that contribute to sustainability
and to reduce greenhouse gas emissions, achieving a renewable energy usage rate of 100% at our business sites in Japan.
In June 2022, the Company declared its support for the recommendations of the Task Force on Climate-related Financial

Disclosures (TCFD). Recognizing that climate change can bea risk and opportunity for corporate management, we havedisclosed information based on the TCFD recommendations.

Aiming to contribute to society byenhancing corporate value
The Tamura Group has set Aspiration for 2050 as the final
goal and aims to achieve this goal through a series of threeyear Medium-term Management Plans, with 2024, the year
marking the 100th anniversary of our founding, and 2030, thetarget year of the SDGs, as milestones.
We have designated the two years from January 2024 to
December 2025 as our 100th anniversary period and are planning various events to express our gratitude for the support ofour stakeholders over the years, such as making a compilationof our history and exhibitions for customers.
Looking beyond our 100th anniversary, the Group will continue to contribute to global society by promoting initiatives
to enhance not only its own corporate value but also the value of society as a whole. I would like to ask all of our stakeholders for their continued understanding and support.

FY2023 earnings forecast andenhancement of sustainability
Despite a temporary slowdown due to the deterioration ineconomic conditions in FY2023, we expect solid demand tocontinue in the electronics market due to the increasing needs
related to EVs, industrial machinery automation, clean energy,
and energy saving. However, the FY2023 consolidated earnings forecast is below the original targets set for the second

Integrated report12Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate Governance

Progress of the 13th Medium-term Management Plan
We are working on achieving the targets of the the 13th Medium-term Management Plan “Energize the Future 100,”
which centers on FY2024, the 100th anniversary of the Group’s founding. In addition, the Group is promoting measures in anticipation of Aspiration for 2050, established as our long-term vision.

and aim to improve factory utilization rates and business profitability. (➡ P.20)
Our financial targets were well exceeded in the first year, a reflection of our strong business performance.

In regard to sustainability measures, we are steadily implementing measures aimed at achieving a fulfilling workplace andrealizing a decarbonized society, and are making progress toward
our goals. (➡ P.25)

Group Financial Targets〉Financial targets for the 13th Medium-term Management Plan

Transformation to create a robust future forthe 100th anniversary & beyond
Business strategy: Growth & Efficiency

Sustainability Strategy

Business growth contributing tocarbon neutrality

To achieve 2030 GHG emission
target and realize Aspiration for2050 based on defined materiality●

Geographicalexpansion●

Creationof newproducts &businesses

Profitability & capital efficiency
Operating
Profit
6.0 billion yen（6%）

ROE 8%

2050❶ Sustainable business growth❷ Product quality improvement❸ Proper supply chain management❹ Compliance❺ Fulfilling workplace❻ Co-existence with local community❼ Environmental protection &contribution to realization of adecarbonized society❽ Proactive information disclosure

FY2022 Result

FY2023 Target

FY2023 Forecast

FY2024 Target

Operating profit

3 bn yen

4.8 bn yen

5 bn yen or more

4.6 bn yen

6 bn yen or more

Operating profit
to net sales ratio

3.2%

4.5%

5%

4.3%

6%

8%

8%

10%

100 bn yen or more

130 bn yen or more

6%

8%

4.0%

ROE

Aspiration for 2050

A leading company forrealizing a decarbonizedsociety that is highly
valued in the global
electronics market

Consolidated
sales≒100 bn yen

108 bn yen

94 bn yenROIC

108 bn yen

3.8%〉Net sales〉Operating profit

13thMedium-termManagement Plan

(Billions of yen)
140

14

120

8

Under the 13th Medium-term Management Plan “Energize the
Future 100,” we view the global trend toward carbon neutrality as
a business opportunity and plan to advance reforms for the 100th
anniversary of our founding and for a strong future beyond.
For the Tamura Group, which operates worldwide, we expect tocontinue to see significant changes in the business environment,
including global environmental changes, geopolitical changes,
technological advancements, and the increasing importance ofhuman capital. In this environment, we believe that the foundation of corporate value creation is to seize opportunities withagility and reduce risks. In the 13th Medium-term Management

13

TAMURA REPORT 2023

6%

80
6
60

0

4%

4
2

2%

0

FY18

FY19

FY20

FY21

FY22

FY23

FY24

Forecast Target

Electronic Components

ー

(-2)

FY27

Electronic Chemicals & FA Systems

FY18

FY19

FY20

FY21

FY22

FY23

FY24

Forecast Target

Information Equipment

Others

ー

FY27

0%

Operating profit to net sales ratio

Business Areas Contributing to Carbon Neutrality
To meet the growing needs associated with the electrification of automobiles, expanding demand for renewable energy, and tighter energy conservation regulations in various countries, we will aim for growth by leveraging our
high-frequency technology to respond to the increasing efficiency of high-capacity electrical control and energy conversion.
Growth created by strong core technologies

The 13th Medium-term Management Plan

In the fiscal year ended March 31, 2023, sales reached a record
high due to strong demand, price revisions, and the impact offoreign exchange rates. In addition, operating profit significantly exceeded the target, driven by improved profitability in ourElectronic Components and Information Equipment businesses,
making the first fiscal year of the plan a period that demonstrated
favorable performance. As a business growth measure that contributes to achieving carbon neutrality, which is an initiative that
we are focusing on, we are expanding capacity in the growing
European and U.S. markets. We have decided to expand our factory in Mexico to increase production of large transformers andreactors used for renewable energy and other applications in the
North American market and to establish a new production basefor chargers and module products in Romania. (➡ P.20)
On the other hand, we are reviewing strategies for automotive-related investments made during the 12th Medium-termManagement Plan. Although the anticipated demand for automotive boosting reactors is not expected in the medium to longterm, the mobility field is still positioned as an important market. In
this field, we will continue to develop products and applications,

8%

10

100

Plan, we will deepen the integration of our sustainability andbusiness strategies, and work as one to develop measures for an
uncertain future.

Progress of the Medium-termManagement Plan

10%

12

20

The long-term vision was reviewed at the time of the formulation of the 13th Medium-term Management Plan, which ends in
2024, the year in which the Tamura Group will celebrate its 100th
anniversary. After several meetings which also included directors,
with our founding spirit and Corporate Philosophy serving as
foundations and based on factors including business issues, environmental/social issues, and stakeholder issues, we have established our long-term vision as “a leading company for realizing adecarbonized society that is highly valued in the global electronics market.” The 13th Medium-term Management Plan serves as
the first step toward realizing our long-term vision.

13th
Medium-termManagement Plan

(Billions of yen)40

Long-term Vision

Beyond〉Guidelines for achieving targets

Materiality

2024
100th
Anniversary

FY2022 Target

PowerElectronics

For high-frequency
magnetic parts
Dust core

Large transformers/reactors
for wind power generation
applications

Reactors for air
conditioners

High heat-resistant bonding
material for power semiconductors
High heat resistant soldering
materials
For reflow soldering
equipment
Heat convection
control
For high frequency, high voltage
Next-gen power semiconductor(Gallium oxide)

Reactors for cars

High heat resistantsoldering materials

Reflow soldering system

Mobility

Transformers/Reactors
for industrial use

High-frequency
insulation material

IoT

Integrated report14Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate Governance

Message from the CFO

Aiming to Achieve
the Financial Targetsof the Medium-termManagement Plan
Introducing ROIC as an internal management indicator, we will work to improve profitability and asset
efficiency in a way that the results can be seen.

Yusaku Hashiguchi

Results for FY2022 and forecast for FY2023〉Balance Sheet and Cash Flows (as of March 31, 2023)(Billions of yen)

FY2021
Cash and deposits
Trade receivables
Inventories
Property, plant and equipment
Total assets
Trade payables
Interest-bearing liabilities
Net assets
Total liabilities and net assets

13.7
22.5
22.1
30.4
104.1
13.3
31.2
50.2
104.1
FY2021

Shareholder’s equity ratio (%)

48.0%

Cash FlowsFY2021

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Free cash flow
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of period(4.95)(4.62)
4.54(9.57)(4.30)
12.89

Increase
FY2022 (Decrease)
14.4
0.7
27.3
4.8
25.7
3.6
29.4
(1.0)
111.8
7.7
14.0
0.7
35.3
4.1
52.9
2.7
111.8
7.7
Increase
FY2022 (Decrease)
47.1%(0.9 pt)
Increase
FY2022 (Decrease)
2.18
7.13
(2.64)
1.98
0.59(3.94)(0.46)
9.11
0.73
5.03
13.62
―

Initiatives in FY2022 to achieve the Medium-term Management Plan
We have introduced ROIC as an internal management
indicator to achieve the following financial targets forthe final year of the Medium-term Management Plan:

15

TAMURA REPORT 2023

from the last quarter of FY2022 due to the use of inventories purchased during the material price surge. However,
we expect the profit margin to improve from the second
half of FY2023 due to the consumption of those inventories and the recovery of the market.
In terms of asset efficiency, we are working to optimize
inventories. In order to prepare for the logistics disruption
and shortage of parts due to the COVID-19 pandemic, bothinventory value and inventory turnover days increased significantly. We are continuing our activities with the goal of
returning the inventory turnover days to the level before
the COVID-19 pandemic.
Furthermore, as a Company-wide initiative associatedwith the introduction of ROIC, a more detailed investment profitability calculation process based on cash flow
performed before making a large-scale investment has
been added. In addition to making investment decisions
more cautiously, we are more aware of the importance ofgrowth investment in the priority of projects.

Growth investments

Director, Managing Executive Officer & CFO

In FY2022, the first year of the Medium-term Management Plan “Energize the Future 100,” we recorded record-high net sales thanks to strong demand and penetration of price revisions, mainly for industrial machineryand home appliances, and the effects of the depreciationof the yen. In regard to profit, both ordinary profit and ordinary profit increased significantly. Profit attributable toowners of parent returned to the black despite recording
an impairment loss at a consolidated subsidiary in China
as an extraordinary loss.
In FY2023, net sales are expected to remain the sameas the previous fiscal year with profits expected to decline
due to inventory adjustments by customers, weakness (orpossible weakness) in some markets, expenses related tocore system upgrades, and extraordinary losses related tothe pension buyout of an overseas subsidiary. However, as
the financial targets for the final year of the Medium-termManagement Plan have not been changed, we will continue to implement measures aimed at achieving them.

efficiency in a tangible manner and accelerate the measures that each business division has been working on fora long time.
In the Electronic Components Business, improving theoperating profit to net sales ratio was a particular issue offocus. Since the material cost ratio is high and easily impacted by material prices and exchange rates (when importing materials), we have been working to set sales prices that are correlated with material prices and exchange
rates. However, as a response to recent volatile material
prices and exchange rates, we promoted the introductionof more tightly linked prices, leading to an improvementin operating profit to net sales ratio. In contrast, although
the Electronic Chemicals/FA Systems Business is a businesssector that drives the Company’s profit side, operating
profit to net sales ratio continued to decline due to theimpact of the COVID-19 pandemic and soaring material
prices. Therefore, we promoted setting of sales prices correlated with material prices in this business sector as well.
Operating profit to net sales ratio declined significantly

Operating profit of 6 billion yen or higher, operating profit
to net sales ratio of 6%, and ROE of 8%. The aim is to show
the results of initiatives to improve profitability and asset

In the 13th Medium-term Management Plan “Energize
the Future 100,” one initiative is to develop businesses that
contribute to carbon neutrality. Therefore, we will invest in
the European and U.S. markets, where carbon neutrality initiatives are leading the way and large business opportunities
are present. Our Mexico factory produces large transformers
and reactors for energy-related markets in North and Central America. Working to increase our production capacity tomeet strong demand, we completed the expansion of thefactory in September 2023. In Europe, we established a new
production base in Romania to manufacture chargers andother module products. Production at our Romania locationis scheduled to start in November 2024.
We will also work to rebuild the production systems at
existing plants. In particular, our Foshan factory in China
recorded an impairment loss in March 2023 because of asluggish factory utilization rate resulting from a change indemand. Since the Foshan factory is an asset owned by theCompany, we do not pay rental fees as we do for the useof other factories in China. We will increase the utilization
rate of the Foshan factory by diversifying our products andShareholder returns
The Company considers providing stable dividends toshareholders to be the most important management issue.
In line with our policy of providing shareholders with stabledividends, we consider cash dividends to be the main measure for returning profits to shareholders. However, we also
give consideration to the total payout ratio while aiming fora stable increase in the dividend payout ratio.

reduce outflow of money.
〉Capital Expenditure, Depreciation, and R&D Expenses* (period ending March 31, 2024)(Billions of yen)

FY2022

FY2023ResultForecast

Increase(Decrease)

Percentage
Increase(Decrease)

3.36

3.94

0.59

17.5%

3.93

3.98

0.05

1.3%

0.72

20.5%

Capitalexpenditure
Depreciation
Note: Including leased assets

R&D related
expenses(Sales ratio)

3.51

4.23

(3.2%)(3.9%)* R&D-related expenses are calculated based on the Company’s standards
for expenses, labor costs, capital expenditure, etc. related to R&D themes.

Major capital expenditures●●

Electronic Components: Production facility expansion
Company-wide: Core server upgrades

Major development investments
 igh voltage/frequency gate drivers and EMC enhanced currentH
sensors● Development of high-performance insulating materials● Eco-friendly reflow equipment● High-efficiency power supplies using next-generation
semiconductors●〉Dividend per Share (yen)End of the year

10
5

10
5

8

During Period

10

10

5

5

5

5

99th Period
FY2021

100th Period
FY20225
5

5

96th Period
FY201897th Period
FY20193
98th Period
FY2020Integrated report16Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate Governance

The Tamura Group at a Glance
FY2022 Sales by Business Segment/Region〉FY2022 Sales by Business Segment〉FY2022 Sales by Region■ Electronic Components■ Japan

73.0 billion yen 68%■ China■ Electronic Chemicals/FA Systems
Total

108 billion yen

32.8 billion yen 30%■ Information Equipment

2.4 billion yen

2%〉FY2022 Capital Expenditure38.9 billion yen 36%
29.0 billion yen 27%

108 billion yen

19.9 billion yen 18%■ Europe and the U.S.

■ Electronic Components■ Electronic Components■ Electronic Chemicals/FA Systems■ Electronic Chemicals/FA Systems

2.59 billion yen 77%■ Other Asian Countries (total)
Total〉FY2022 R&D Expenses

0.67 billion yen 20%

Total

3.36 billion yen

0.06 billion yen■ Information Equipment

20.2 billion yen 19%

0.09 billion yen

0.31 billion yen 40%

Total■ Information Equipment

0.76 billion yen

3%8%

0.09 billion yen 12%■ Group-wide

0.30 billion yen 40%

Applications

Operating profit (Billion yen)Home appliances, automobiles, industrial robots/machine tools,
wind and solar power generation, data centers, rockets/satellites, vending machines, etc.

Main products
Transformers
Reactors
Coils〉Operating profit〉Sales (Billion yen)

Electronic
Components

Transformers, coils and reactors, and large reactors

Operating profit to net sales ratio (%)

73.0

2.64

59.3
47.8

LED-related products for vending machines

Large transformers andreactors

3.6%

Battery chargers
Power modules

0.56

Gate driver
0.17

Current sensors
LED-related products etc.

Power modules, current sensors, and gate drivers

FY21

FY22

FY20

0.9%
FY21

FY22

〉Operating profit〉Sales (Billion yen)

Electronic
Chemicals/
FA Systems

Operating profit (Billion yen)

Applications
27.1

2.63

9.4%
2.15

22.7

Solder paste and flux

Operating profit to net sales ratio (%)

32.8

Automobiles, smartphones/PCs, home appliances,
telecommunication base stations, PCBs, etc.

Main products
Solder paste

FY20

Security and IoT related products

0.3%

Flux

2.10
7.7%

8.0%

FY21

FY22

Solder resists
FA Systems etc.

Solder resists

FY20

FA Systems

FY21

FY22

〉Operating profit〉Sales (Billion yen)

Information
Equipment

FY20

Operating profit (Billion yen)
Operating profit to net sales ratio (%)

Applications

Main products

Broadcast stations, train stations, theaters, concert halls, etc.

3.5

0.28

Audio mixing console
Wireless intercom

2.4

Wireless microphone etc.

8.0%
-0.01

2.1

-0.3%

-30.7%-0.64
Audio mixing console for broadcast use

17

TAMURA REPORT 2023

Wireless devices

FY20

FY21

FY22

FY20

FY21

FY22

Integrated report18Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceElectronic Components
Through our highly reliable and highly efficient power
technology, we contribute to the future of powerelectronics, realizing safer and more secure lives as well
as a decarbonized society.

Sales by Product (Billion yen)

59.3
47.8

9.1

17.5

12.2

Senior Executive Officer
Director of Electronic Components
Director of Unit Business Sector

4.6

3.4
5.5

Business Summary for FY2022

Yuji Nakayama

Demand is expected to be sluggish in the first half of FY2023 due to inventory adjustments bymajor customers involving chargers for power tools and continued sluggish demand for in-vehicle
boost reactors, as well as the cautious stance toward capital investment by customers related to air
conditioner reactors and industrial equipment. On the other hand, demand for large transformers/
reactors and LED products for vending machines is expected to remain firm.

73.0

5.4

5.8

11.6

12.0

72.0

3.60

17.6

14.3

6.5

8.6

9.7

9.0

22.2

23.4

6.6

17.3

15.7
FY20

FY21

5.0%

2.80

2.64

3.8%

3.6%

7.0

Business Performance Forecast for FY2023

73.0

4.1
3.8

Sales of reactors for air conditioners and sales of transformers and reactors for industrial machinery remained strong throughout the fiscal year. However, sales of chargers for power tools declinedin the fourth quarter of the period due to inventory adjustments by major customers. Sales of related
products to automotive-related customers remained sluggish due to a gradual recovery in demand,
although production adjustments due to the shortage of semiconductors showed signs of dissipation. Sales of LED products for vending machines remained stable at pre-COVID-19 levels. In regard
to profit, profitability improved significantly due to the effect of price revisions and the effects ofproduction improvement activities that have been implemented since the previous Medium-termManagement Plan. As a result, both sales and profit increased, with record sales of 72.965 billion yen(up 23.1% year-on-year) and segment profit of 2.642 billion yen (up 370.1% year-on-year).

Operating Profit/Operating Profit to Net Sales Ratio

0.56
0.9%

0.17
FY22

FY23
Forecast

FY24
Target

0.3%

FY20

FY21

FY22

FY23
Forecast

LED

Power supplies, Units, Ceramics, etc.

Operating profit (Billion yen)AC adaptors/Chargers

Large transformers and reactors

Operating profit to net sales ratio (%)

Transformers

Reactors/Coils

FY24
TargetIncrease sales in Europe and the United States
Plans to increase production of large transformers in Mexico

Established a new production base in Romania for theElectronic Components business sector

Responding to robust demand for large transformers & reactors in US renewable energy market● Plant expansion in
Mexico to becompleted in 2H of
FY2023●

Plans to produce chargers and other module products● In response to demand growth in Europe due to expansionof renewable energy needs
and electrification● Also aiming to diversify
manufacturing footprint
globally●

Outline of the new company
Establishment: December 2022
Location: Fetești-Gară, Ialomiţa, RomaStart of commercial production:
Scheduled for November 2024

Medium-term Management Plan
Financial Targets for FY2024

Consolidated
72 billion yen
sales

Review of the automotive business

OperatingprofitOperating profit to
3.6 billion yen
net sales ratio

5.0%

Business Strategy◆ Aim to expand business with multipath approach, responding flexibly to changing needs under uncertainty◆ Make semiconductor drive modules business comparable to power supply business through productdevelopment and geographical market expansion

Momentum of CN market

× Market and geographical growth × High profitability■ Market opportunities: robust carbon-neutral market

 obility: boosting reactors, transformers/coils forMbattery chargers (in-vehicle and stationary types)
High voltage/frequency gate drivers, EMC enhanced
current sensors● E nergy: large-size transformers and reactors, gate drivers● Region: Growth in Europe and US market (renewableenergy, battery chargers)●

19

TAMURA REPORT 2023

■ Profitability improvementI ncrease of high value-added modules● Differentiation through the development of high-frequency dust cores● 
Production footprint reorganization to satisfy local
content requirements

Review of the business plan for boosting reactors for cars
E stimated demand decreased by half due to changes in the business environment, such as the trend toward the transition to EVs
and the promotion of in-house production by customers● Review business plan and shift strategy from focusing on boosting reactors for automotive applications to a broader view of theentire mobility market.
●

Automotive reactor market strategy

Mobility market strategies
Expand products & sales
Large capacity & high-frequency
transformers & reactors for rapid
charge, V2H & V2X

Focused on business growth in the areaof step-up reactors for cars in the previous
Medium-term Management Plan but
estimated level of demand declined●

boosting reactors
for cars

2022

Current sensors forautomobiles & electric railways

Furtherdevelop themobilitymarketGate driver module forelectric railways

Large transformers & reactors
for electric railways

boosting reactors
for cars

2030
Integrated report20Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceElectronic Chemicals/FA Systems
We contribute to the sustainable growth of the electronics
industry with environmentally-friendly materials
and equipment, excelling in highly reliable soldering
technology required for high-density mounting.

Sales by Product (Billion yen)

Operating Profit/Operating Profit to Net Sales Ratio
32.8
4.9

27.1

2.0

9.4%

5.8
2.5

2.15

6.0

2.4

3.1

3.30

2.63

2.6

4.0

22.7

33.0

32.0

5.9

7.7%
8.0%

7.8%

FY22

FY23
Forecast

2.10

5.9

10.0%

2.50

5.9
19.6

Business Summary for FY2022
In the Electronic Chemicals business segment, sales increased due to solid sales of solder paste,
efforts to revise prices, and the depreciation of the yen. Sales of solder resists were on par with theprevious fiscal year, partly due to the effects of foreign exchange rates, despite the impact of production cuts by automobile-related customers and sluggish demand for flexible substrates for smartphones. In the FA Systems segment, a recovery trend continued, particularly among Japanese automobile-related customers. As a result, both sales and profit increased, with record sales of 32.752
billion yen (up 20.7% year-on-year) and segment profit of 2.626 billion yen (up 25.2% year-on-year).

FY20

FY21

FY22

17.7

FY23
Forecast

FY24
TargetFY20

FY21

Operating profit to net sales ratio (%)

Operating profit (Billion yen)

FA Systems

Flux, etc.

Solder resist related products

Solder paste related products

FY24
TargetGlobal Expansion of Reflow Soldering Systems BusinessBusiness Performance Forecast for FY2023

Seiji Shibata

11.7

14.7

Due to weakness (or potential weakness) in some markets and continued price declines since
the fourth quarter of the previous fiscal year, we anticipate severe conditions in the first half of the
fiscal year, particularly in the Electronic Chemicals segment. In addition to the continued recovery
in demand for products used in automobiles, demand for smartphones is expected to increase due
to seasonal factors, and sales are expected to gradually recover from the second quarter onward.

New TNU Reflow Soldering System

Promotion of Global Expansion

Senior Executive Officer
Director of Electronic Chemicals/FA
Systems Business Sector

Reflow soldering systemdemo models on display
at our Mexico showroom

Medium-term Management Plan
Consolidated
33 billion yen
sales

Operatingprofit

3.3 billion yen

Operating profit to
net sales ratio

10.0%

Business Strategy◆ Implement flexible pricing strategies in response to material price fluctuations◆ Increase profit by developing high value-added products and reducing costs and create markets withcustom-in approach into growth areas

New product development

×

New markets■ New products

 igh heat-resistant soldering materials forHnext-generation power semiconductors● Coverlay market products● Solder paste for new semiconductor construction
method● Energy saving reflow soldering systems●■ Production improvement●

21

Reorganization of production footprints for local supply

TAMURA REPORT 2023

F lexible function design to meet the needs of nonJapanese customers● Contribution to improved production efficiency andenergy saving for customers:
The temperature change time when switchingmodels is 1/3 of that of our conventional products➡ Contributes to energy saving for the entire factory● Equipment management using IoT (big data)●

Financial Targets for FY2024

× Production improvement■ New market expansionS eeking approval of US and European customers forautomotive solder paste● Sales expansion of solder resists for Mini LED market● Sales expansion of reflow soldering systems for
non-Japanese customers●

 e utilize our group network to expand our products toWcustomers in China and ASEAN countries● Reflow soldering system demo models on display at our Mexico
showroom together with electronic chemicals. This will lead toacquiring customers from Europe and the US.
●

Interbusiness Product Development for Mobility Market
Increasing need for
products capable ofproviding large currents,
high voltages, and highlevels of efficiency
Increased demand fornext-generation power
semiconductors is expectedGroup-wide promotion of
product development
Electronic
Components Business

Establishmentof a common R&D division
Enhance collaboration between
business divisions

High heat resistantsoldering materials

High-frequency insulation materials

Electronic Chemicals/
FA Systems Business
Gate drivers

Current sensors

Dust cores

Integrated report22Creating Tamura Group’s Value

Information Equipment

In the broadcasting industry, the main market for the Information Equipment Business, there was a gradual shift to equipment upgrades from a phase of capital investment restraint. However, this did not lead toa full-fledged recovery of the segment. In regard to profit, losses were significantly reduced due to lower
development costs compared to the previous year as a result of the completion of the development of thenext-generation audio mixing console. As a result, sales reached 2.444 billion yen (up 17.6% year-on-year)
and with a segment loss of 6 million yen (compared to a segment loss of 638 million yen in the previous
period).

Business Performance Forecast for FY2023
Sales of our next-generation audio mixing console are expected to expand in the second half of the fiscal
year by steadily responding to customer demand for equipment upgrades.

Based on its Corporate Philosophy and founding spirit, the Tamura Group has established its long-term vision “Aspiration for 2050,” aiming
to become “A leading company for realizing a decarbonized society that is highly valued in the global electronics market.” As the first step
toward achieving this goal, we have formulated the 13th Medium-term Management Plan, which covers the three-year period from April
2022 to March 2025. In this Medium-term Management Plan, we are promoting initiatives by integrating our business and sustainability
strategies.

At the Tamura Group, in addition to fulfilling our corporatesocial responsibility by promoting sustainability in the six areasof “compliance/ethics,” “risk management,” “human rights and labor,” “environment,” “quality,” and “social contribution,” we aim toachieve sustainable growth by clarifying the Group’s vision froma long-term perspective and by strategically addressing sustainability issues. As part of these efforts, we set the year 2050 as ourtarget, and the Sustainability Management Committee, an advisory body to the Board of Directors, discussed how we should
face and approach various social issues, and identified materiality
concerning sustainability in May 2021.

Step

Financial Targets for FY2024

Based on international guidelines or indexes for CSR and ESG (environmental, social, and governance), such as the UN
Global Compact, ISO26000, and GRI (Global Reporting Initiative) Standards, the Group considered its business domain
and extracted approximately 30 issues to be evaluated as materiality candidates.

15.0%

Operating Profit/Operating Profit to Net Sales Ratio
Step

4.0

0.60

3.5
3.0

0.40

0.28

2.4
2.1

2

13.3%

-0.3%

8.0%

15.0%

-0.01

Step

-30.7%
-0.64
FY21

FY22

FY23
Forecast

Business Strategy

FY24
Target

FY20

FY21

FY22

FY23
Forecast

Operating profit (Billion yen)

FY24
TargetOperating profit to net sales ratio (%)◆ Secure semiconductors and other essential components. Return to and increase profit as soon as possible
through sales of our next-generation audio mixing console.
◆ Cope with changes in needs and technologies such as network-based broadcasting equipment

Seize market opportunity by responding to the needs of key customers in a timely manner■ Next-generation audio mixing console

Keep up with facility renovation demand of key broadcasting stations● Steadily secure key components such as semiconductors● Streamlining business and production systems● Promote collaboration with companies providing peripheral products and services tocope with technological changes such as creating related networks

3

Evaluate Degree of Importance
The Group evaluated the degree of importance of the materiality candidates identified in Step 1 from the perspective of
stakeholders and the Tamura Group itself. As for the perspective of stakeholders, it performed a quantitative assessment
by taking into consideration the degree of their interest based on continued dialogue with them and data from a widearray of studies on CSR. In terms of degree of importance for the Tamura Group, it analyzed risks and opportunities ofeach issue and performed a quantitative assessment by taking the impact on business activities and management into
consideration.

Identify Materiality

The Group visualized the assessment results on a materiality matrix, and as for
issues whose degree of importance was rated high by both stakeholders andthe Group, related discussions were held by the Sustainability Management
Committee, an advisory body to the Board of Directors, with the Board of Directors identifying the materiality items.

〉Assessment
Standard

Very highOperating profit to
net sales ratio

Extract Issues to be EvaluatedMateriality

High

0.6 billion yen

1

Level of importance to our stakeholders

OperatingprofitSales by Product (billion yen)

FY20

Furthermore, when we formulated our 13th Medium-termManagement Plan in 2022, we have set our ideal vision for 2050
as our long-term vision, based on our founding spirit and Corporate Philosophy, with the aim of becoming “a leading company forrealizing a decarbonized society that is highly valued in the global
electronics market.”In addition, we reviewed materiality based on issues related tobusiness, the environment and society, and stakeholders, and set
management indicators and targets for FY2024 in conjunction
with our Medium-term Management Plan.

Process of Identifying Materiality

Medium-term Management Plan
Consolidated
4 billion yen
sales

Corporate Governance

Identifying Materiality

Business Summary for FY2022

Executive Officer
Director of Information
Equipment Business Sector

Sustainability Strategy

Sustainability Strategy

By delivering quality sound, we aim to improve thesafety and security of social infrastructure and deliver
value and excitement to customers.

Kazuyoshi Ishida

Strategy by BusinessHigh

Very highLevel of importance to the Tamura Group●23

TAMURA REPORT 2023

Next-Generation Full IP Audio Mixing Console
Integrated report24Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate Governance

Environment
Progress of Sustainability Strategy
We are steadily implementing measures aimed at achieving afulfilling workplace and realizing a decarbonized society, and aremaking progress toward our goals. To reduce greenhouse gas emissions, we have achieved a renewable energy usage rate of 100%
at our business sites in Japan (Head Office, Sakado, Iruma, Sayama, and Kodama), a major step forward in achieving this goal. As
part of job satisfaction reform, we have promoted a psychological
Materiality

safety programs, in which internal volunteers participate, andconducted an employee engagement survey on a global basis
for the first time.
The progress for each KPI is provided in the table below.
The Tamura Group will integrate its business and sustainability
strategies to transform the Group to create a strong future for the
100th anniversary of its founding and beyond.

Target for FY2024

1. Sustainable business growth

Ratio of new product and market sales: 30%

2. Product quality improvement

Defect cost ratio: 15% reduction against the average during
the 12th Medium-term Management Plan period

3. Proper supply chain

SAQ survey on key suppliers: 100%

4. Compliance

Compliance training: 100%

5. Fulfilling workplace

1. Global: Improvement of employee survey implementation
score: 3 pt/year
2. Diversity at bases in Japan: Ratios of female, non-Japanese,and mid-career employees in managerial positions: 10%,5%, and 50% respectively

management

6. Co-existence with local
community

7. Environmental protection &contribution to realizing adecarbonized society

8. P roactive information
disclosure

Tamura Group Environmental Policy

Environmental Management System

Social contribution cost: 1% of ordinary profit
1. Ratio of sustainability-contributing product sales: 27%
2. GHG (Scope 1 & 2) reduction: 33% or more from 2013 level*
1. Publication of integrated report
2. Climate related disclosure based on TCFD

Result for FY2022
11.8%
52% increase
Preparation of procurement
guidelines/SAQ revisions
94%
1. Conducted survey for first time (toserve as a base for comparisons)2. Achieved ratios of 7.8%, 0.6%,
40.3% respectively
1.4%
1. 20%
2. 45%The Tamura Group began building a globally unified environment
management system in FY2006 and had integrated 28 sites of 19 companies by FY2022 in an attempt to improve its environmental performanceand enhance environmental governance.
In order to manage the environmental management system, theTamura Group has established the Tamura Group EMS Committee, which
is headed by the President and Representative Director, and consists of aGeneral Environmental Managing Representative and persons in chargeof the business divisions at each site serving as committee members.
The Tamura Group EMS Committee promotes the improvement ofcommunication and horizontal deployment related to the operation of
the system and the improvement of the environmental performance ofthe entire Group.

Environmental Concept
The Tamura Group conducts all its business activities in harmony with the environment by promoting sustainable resource use, climate change
mitigation and adaptation, and biodiversity andecosystem protection. These activities are based on
the Group Mission Statement: “The Tamura Groupsupplies an original range of products and services,highly regarded in the global electronics market, tosatisfy the evolving needs of customers, employees,
and shareholders supporting the Group’s growth.”

Main Measures
Fully recognizing the global targets specified in the
SDGs (Sustainable Development Goals) and the Paris Agreement and with the aim of achieving continuous business growth, the Tamura Group focuseson the following environmental protection activities in its business operations, including design,development, production, and after-sales service ofelectronic components, electrochemical materials,
soldering equipment, and information equipment,
by utilizing its environmental management system,
effectively using resources observing pollution prevention practices as well as laws and regulations,and working on their consistent improvement.

〉Promotion Structure (as of July 1, 2023)
President and Representative Director

General Environmental Managing Representative

Chairperson of the Internal
Environment Audit Committee

Tamura Group EMS Committee

1. The supply of eco-friendly products.
2. Control and reduction of environmental
burden materials.
3. Promotion of energy conservation andsaving resources.

Head Office Functions/Business Divisions/Group Companies

1. Published integrated report for the
first time
2. Started TCFD-based disclosure* 2013 figure adjusted on a like-for-like basis.

GHG reduction target

TOPICSElectricity of Five Major Business Sites Switched to Renewable Energy Source Equivalent
Carbon dioxide emissions cut by approximately 6,900 tons annually using non-fossil fuel energy certificate
renewable energy sources, and is considered to be electricAs part of our efforts to reduce greenhouse gas emissions
generated by our business activities, Tamura switched the
ity with zero CO2 emissions. Through this initiative, we were
electricity contract for five of our business sites* in Japan
able to reduce CO2 emissions by approximately by 6,900
to the Green Basic plan offered by TEPCO Energy Partner intons in FY2022.
March 2022.
The Tamura Group, will continue to promote the reducThe electricity used for the non-fossil certificate equivation of greenhouse gas emissions and contribute to the relent is treated in the same way as electricity derived fromalization of a carbon-free society.
* Five business sites (Head Office, Sakado Factory, Iruma Factory, Sayama Factory, and Kodama Factory): The factories in the Greater Tokyo Area. Renewable energy use of 100% wasachieved.

25

TAMURA REPORT 2023

Since FY2022, we have been working to achieve our new greenhousegas reduction targets (Scope 1 & 2) based on two pillars: Promotion ofenergy savings and procurement of renewable energy.
In the promotion of energy savings, we are working to visualize energy consumption, which is the first step in energy savings, utilize energy savings diagnoses, replace aging facilities with energy-efficient ones,
improve the efficiency of operation control, and improve energy use
efficiency.
As a result of this initiative, the target was achieved with a 45% reduction in energy consumption compared to the FY2022 target of 27%.

GHG reduction target
Greenhouse Gas Emissions* (Scope 1 & 2):
FY2030	Reduction of 51% or more(compared to FY2013 level)●Renewable Energy Introduction Target
Amount of renewable energy introduced:
FY2030	More than double(compared to FY2019 level)●Within Scope 1 (direct emissions from our own fuel use or production
process) or Scope 2 (indirect emissions from the use of electricity or heat
we purchased).

* ●

Emissions related to new plants are added to those of past fiscal years
including the base year to appropriately evaluate reduction efforts madeafter the start of operation.

●Emission coefficients represent those of electricity purchased based onagreements in principle.

●Integrated report26Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate Governance

Environment

Sustainability-Contributing Products

NTX Audio Mixing Consoles

The Tamura Group carries out product environmental assessment in the development and design phases to minimize environmental
impact, and strives to contribute to achieving a sustainable society through the development and provision of products that contribute tosustainability.

Power Modules (xPM series)
Since regulations on energy conservation are being tightened toachieve carbon neutrality, there is a growing demand for power sources that offer high-efficiency.
Our energy-saving power modules (xPM series) is comprised of fiveseries, from 3 to 80 W class, and can be selected according to power
RPM Series (80 W)
and voltage levels. In addition, the module has significantly improved
power consumption characteristics under no load and efficiency characteristics underlight load (when the product is in a standby state). This series responds to the energysaving issues of customers and contributes to the reduction of power consumption andthe reduction of man-hours for product development.

〉Efficiency vs. Load Factor
100

Efficiency (%)

90
80

RPM Series (80 W)
BPM Series (40 W)
MPM Series (25 W)
ERM Series (15 W)

70

NTX series audio mixing consoles is a digital mixing console
suitable for live broadcasting and program recording. The main
product in this series is X CORE, which is used to perform audio
routing and audio signal processing. The X CORE has a MEDIA
port that supports ST2110-30, AES67, and ST2022-7 standards, being compatible with IP-based next-generation broadcast systems.
Compared to the NT Series, our previous audio mixing console
series offering the same level of functionality, the main function
sections (audio routing and audio signal processing sections) together use around 34% less power and the console uses around
68% less power, while the main function sections are smaller with
controls placed closer together through high-density mounting.

Power consumption
NT Series
Decrease
Router and DSP (4 units) ➡ Approx. 34%
NT880 (40 Fader)➡ Approx. 68%●●

NTX Series
X CORE
NTX800 (36 Fader) ain function rack occupancy when product is in is maximumM
configuration
NT Series
Decrease
NTX Series
6U
4U➡ 2U decrease*U: Unit of height when a rack is mounted. 1U = approx. 44.45 mm.

60
50

0

10

20

30

40 50 60
Load factor (%)

70

80

90 100Initiatives Associated with Our Declaration of Support for Information Disclosure Based on
TCFD Recommendations
Governance

Low Melting Point (SnBi+α) Solder Paste TLF407-18-HF
Amid growing interest in carbon neutrality, low melting point solder is attracting attention. Compared to SAC305 (Sn/3Ag/0.5Cu), a solder
alloy which is widely used in the market, low melting point solder (SnBi series) has a melting point of about 80°C lower than that of SAC305(Sn/3Ag/0.5Cu), making it possible to reduce power consumption during the reflow process. According to our calculations, it is expected toreduce annual reflow-oven electric power consumption by 40%. For TLF407-18-HF, we have developed and use a new alloy (SnBi+α) with improved drop impact resistance. Low melting point (SnBi series) solders normally do not offer suitable drop impact resistance. Since it can also be
used in an atmospheric reflow process, which has normally been an issue for low melting point solders, nitrogen used in the N2 reflow process
is not required. This contributes to the reduction of environmental impact in addition to reducing power consumption as mentioned above.
Temperature can belowered in the hightemperature range
by 40 to 60°C

SAC305 solder paste reflow profile
Low temperature solder paste
reflow profile

250
200
150
100
0

0

60

120

180

300 Time (sec.)

240

Power (kWh)30
SAC305：9.9 kWh
Low melting point:
6.1 kWh20

40% reductionin powerconsumption

10〉Comparison of characteristic life for each alloy indrop impact test
600
Characteristic life number of (drops)

Temperature (°C)

300

500

1

31

61

91

409

400
300

208

200

121 Operating time (min.)217

Existing SnBi type SnBi type product SnBi type product Product under
product Sn57Bi1 Ag on the market (1) on the market (2) development #407

The increasing popularity of eco-friendly cars (hybrid vehicles, electric vehicles, etc.) has usheredin an increase in the number of electronic control units (ECUs) installed in one car. To save space andreduce weight, the installation of ECUs in a harsher, higher-temperature environment is expected.
Therefore, solder resist for PCBs used in ECUs needs to exhibit better resistance to a high-temperature environment.
This product is a matte-type alkaline development type soldermask for screen printing with improved high-temperature durability and low elasticity compared to conventional products, whichsignificantly suppresses cracking in the solder mask in a thermal cycle test of -40°C ⇔ +160°C, whichassumes a high-temperature environment, and has excellent high-temperature durability (160°C for
2,000 hours). It has high flexibility as well and can be used in PCBs that are bent when assembled(rigid flexible PCBs). It is a halogen-free product that contributes to space saving through the bending assembly.
TAMURA REPORT 2023

Consultation

Board of Directors
AdviceSupervision

Sustainability
Management
Committee

ReportPresident
Executive Officer
Committee
Instructions

ReportBusiness Segment
Head Office Division
Group Companies

Strategy
Pb-free
SAC305

DSR-2200ACR-19M High-Reliability, Crack-Resistant Solder Resist for
Automotive Use

27〉Governance Structure

109

100
0

0

551

At the Tamura Group, the Board of Directors is responsible fordetermining basic policies and strategies and overseeing their execution with respect to climate change, human capital, and othersustainability issues in general. To ensure efficient and effective
oversight, the Board of Directors has established the Sustainability
Management Committee as a advisory body for support. The Sustainability Management Committee consists of the President andRepresentative Director, all five Directors who are Audit & Supervisory Committee members, and the Executive Officer in chargeof Sustainability. It meets twice a year to supervise the progressof the sustainability strategy, deliberates on related agenda items,
and reports to the Board of Directors.
Based on the basic policies and strategies, specific measuresand initiatives are promoted by executive departments under the
Executive Officer Committee chaired by the President and Representative Director.

This productAs we consider climate change to be a key issue, the Tamura
Group declared its support for the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD) in June 2022.
We are committed to information disclosure based on the TCFD
framework to promote constructive communication with stakeholders.
In the following paragraphs, we indicate the risks (transition
risks and physical risks) and opportunities recognized by the
Tamura Group related to climate change.
Transition risks include increased costs associated with compliance with carbon taxes and stricter greenhouse gas emission regulations, higher prices of raw materials such as petrochemicals andmetal and mineral resources, and increased costs from capital expenditure in procurement of low-carbon raw materials and low-carbonization of our own manufacturing processes. Physical risks

include intensifying natural disasters caused by climate change,
damage to business sites due to changes in climate patterns, andloss of sales opportunities due to supply chain disruptions.
As for opportunities, we recognize that business opportunities
will increase in the three areas of power electronics, mobility, and
IoT, which are the Tamura Group’s core businesses and growth areas that contribute to carbon neutrality, due to an increase in renewable energy generation facilities such as solar and wind power generation, an increase in electricity demand associated with ashift from fossil fuel use to electricity use and IoT promotion, anddevelopment in emerging countries. We are taking measures tomaximize these opportunities.
For details on information disclosure based on the TCFD, please
visit our website.
https://www.tamuracorp.com/sustainability/e_report/tcfd.html

Conventional productIntegrated report28Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceSupply Chain Management/Quality/Social Contribution

Environment

Supply Chain Management

Risk Management

Indicators and Targets

In order to promptly and accurately address risks that may directly or indirectly affect management or business operations, theTamura Group has established internal regulations, such as Risk
Management Regulations, Crisis Management Regulations, Internal Reporting Regulations, and Information Management Regulations, and manages risks accordingly. Risks related to climatechange are also managed under the aforementioned governancesystem as part of these efforts.

Aiming to achieve carbon neutrality by 2050, the Tamura Groupaims to reduce Scope 1*1 and Scope 2*2 greenhouse gas emissions by 51% compared to FY2013*3 levels by FY2030. We have set
a target of reducing emissions by 33% by FY2024, the final year of
the 13th Medium-term Management Plan.
Aiming to achieve these goals, in FY2022, we worked to reduce
electricity consumption by saving energy in our own processes, installed solar power generation equipment, and procured
renewable energy, achieving a 45% reduction in greenhouse gas
emissions compared to our initial reduction target of 27%.

To deliver products that satisfy customers, we collaborate with our business partners on quality, the environment, and social responsibility throughout the entire supply chain.

Promoting CSR Procurement
In order to respond to the growing interest of stakeholders
in the entire business process from product manufacturing tosales, the Tamura Group has established the Tamura Group Procurement Guidelines (hereinafter “Procurement Guidelines”) topromote CSR initiatives throughout the supply chain. The Tamura
Group Fundamental Purchasing Principles are set forth in the Pro-

curement Guidelines, and we ask for the understanding and cooperation of our suppliers with regard to CSR procurement. Since
we have revised our Procurement Guidelines in June 2023, we will
make efforts to have suppliers enter written agreements so thatthey follow the Procurement Guidelines and provide us with responses to the SAQ (Self-Assessment Questionnaire).

*1 Scope 1 (direct emissions): Amount of greenhouse gas emissions from the Company’s plants, offices, vehicles, etc.
*2 Scope 2 (indirect emissions): Greenhouse gas emissions from the Company’s use of electricity, etc. supplied by other companies.
*3 2013 figure adjusted on a like-for-like basis.

QualityClassification〉Overview of impact of risks and opportunities associated with realizing a decarbonized society on business
DivisionType

Description

Physical risk

Chronic

Company-WideTemperature
Rise
Time Axis

Acute

Business Segment

1.5°C
24

30

Electronic Components

4°C
50

1.5°C

24

30

50

Intensifying natural disasters

1

3

3

Negative impact of the macroeconomy due to the materializationof physical risks

2

2

3

Decrease in land and property values in areas with high risk ofwind and flood damage

1

2

3

Cost of countermeasures for storm surges and rising sea levels

1

2

3

Increased air conditioning costs due to higher average temperatures

1

2

3

Decrease in efficiency of solar power generation facilities due toheat waves; replacement with more durable and weather-resistantproducts and equipment

1

2

3

Negative macroeconomic impacts from various regulatory tightening

1

3

2

Increased costs related to low-carbon initiatives

2

3

2

Increased costs of environmental measures for new and existingbuildings

1

2

3

Increased operating costs for environmentally-friendly real estate

1

2

3

Increased costs associated with replacing gas-powered companyowned vehicles with EVs and FCVs

1

1

1

Replacement of equipment due to tightening of regulations

1

3

2

Transition risk

Increased costs of raw materials related to rising naphtha prices

Market/Technology/
Reputation

Opportunity

Expansion of
product andservice related
markets

Reduction ofgreenhousegas emissions

Enhancementof corporate
value/
Securingof human
resources* Impact assessment

29

●

30

4°C
50

1.5°C

24

30

50

1

3

3

1

2

24

30

4°C
50

3

1

2

1

2

3

2

1

2

2

1

2

2

1

2

3

1

3

3

―

2

2

―

2

3

Increased cost of raw materials made using mineral resources

2

2

3

2

3

3

2

3

3

Contribution to business continuity of affected companies in theevent of a natural disaster

1

3

3

Increased demand for highly durable and weather-resistant products

1

2

3

Increased demand for low-carbon and energy-saving products

2

3

3

Increased demand for automated and labor-saving products

2

3

3

Increased demand for products eligible for material recycling

2

3

Increased demand for energy-saving facilities and products

1

3

Increased demand for products associated with various regulatory
tightening

1

Reduction of tax burden due to using low-carbon materials in
manufacturing processes―

Reduction of energy procurement costs due to the expansion of
the renewable energy market

1

3

2

Higher-efficiency and decarbonization of our business activities
achieved through the use of 5G and IoT technology

2

3

3

Enhancement of corporate value through appropriate information
disclosure and stable securement of human resources over the
medium to long term

2

3

3

Impact on operating income 1: 10 million yen or more, 2: 0.1 billion yen or more, 3: 0.5 billion yen or more

TAMURA REPORT 2023

30

50

1

3

3

1

Increased raw material costs due to low-carbon manufacturing
processes
Deterioration of corporate value due to lack of disclosure anddifficulty in securing human resources
Reduction/Suspension of transactions due to a lack of low-carbon
initiatives

24

2

3

To uphold the policy of “Creating Correct, Quality Products,” the Tamura Group has been promoting various quality improvement activities to further increase customer satisfaction, while endeavoring to establish the optimal quality management system for each businesssegment.

Tamura Group Quality Policy
and deployed, and activities were initiated to quantitatively deterIn January 2021, we revised our Quality Policy, based on ourbelief that it is necessary to foster a corporate culture in which themine how familiar employees are with the policy in each divisionidea of quality first is once again the norm, as quality is essential
and improve their level of awareness. We will continue to raise
as one of the factors for further corporate growth. The new Qualquality awareness throughout the entire Group.
ity Policy defines the Group’s compass
as “Creating Correct, Quality Products”,
Action Guidelines
Tamura Group Quality Policy
which is what “Biltrite” meant when it
was founded. In addition, by expressing
the meaning of this Quality Policy as aconcrete action guideline (Eight Articlesof Manufacturing for production and 10
Biltrite Tamura
Rules of Design for development), we
Correct
aim to establish Tamura’s quality culture
・Correctly grasping and understanding our customers’needs
and what the industry considers self-evident
that transcends generations.
・Correct decisions and actions by defining quality
conditions that suit needs
From FY2022 onward, we will continue
Quality Products
・Products that provide joy to customers
to promote efforts that make employby meeting their expectations
ees more familiar with the Quality Policy
Create・Manufacturing that emphasizes the work process andthrough the use of short, explanatory
finished productWe
videos and our in-house newsletter. In
and teach top-class knowledge, skills, and1 learnthe correct standards, aiming to become professionals:
addition, based on quality reviews by top
and ensure compliance with decisions, and2 comply
constantly strive for the optimal decisions and actions.
management, a checklist was createdTamura Group Quality Policy

Increased costs due to changes in packaging and shipping methods
Policies andregulations

24

Electronic Chemicals & FA Systems●

Creating Correct,
Quality Products

Eight Articles of Manufacturing

Good culture ,Good work, Good system

1

There is no manufacturing without training human resources2

It takes wise wisdom to design the manufacturing process

3

There must be no vagueness or indecision in steps or judgments

4

Set criteria ahead of time for dealing with issues, and ensure they are solved
tenaciously

5

Be aware that rules function through agreement and understanding of
their purpose

6

Always aim for rectification of people, things, and information

7

Do not determine things without checking the actual site or item

8

Continued improvements are what hone and train on-site capabilities

Ten Rules of Design

Good culture, Good design, Good flow

1

Learning, passing on, sympathizing, and raising each other up is
how we foster people

2

Foster a culture of praising the good, making people realize things

3

Sharing wisdom and knowledge without leaving anything out createstreasures of skills

4

Correct assessment is the sign pointing to correct design

5

Engrave on your heart that concealment leads to a chain of negative outcomes6

Do not pronounce without evidence

7

Be aware that your responsibility only ends when information you pass oncorrectly is understood8

Remember that reviews are not a time to point out faults, but to solve problems

9

Always be sensitive to the market and customers’ voices

10 Always consider how easy your design instructions will be to carry out on site

2

3

3

3

2

3

3

3

2

3

3

3

2

1

3

2

2

2

―

2

2

January 1,2021 Chairperson and Representative Director

Naoki Tamura

January 1,2021

Chairperson and Representative Director

Naoki Tamura

Social contribution
For coexistence and harmony with the society, as well as to foster mutual understanding and build bonds of trust with national
governments and local communities, we are promoting social
contribution activities rooted in local communities and related
regions. In FY2022, the total expenditure on social contribution

activities of the Tamura Group was approx. 60 million yen, which
was approx. 1.4% of the ordinary profit. Despite many of our activities being suspended in FY2022 because of the COVID-19 pandemic the Group will continue efforts to promote these activities
while working on new themes.

Time axis: 24 means 2024, 30 means 2030, and 50 means 2050

Integrated report30Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate Governance

Human Capital
The Tamura Group believes that in order to promote business goals and realize sustainable business activities, it is important to have boththe human resources to carry out these goals and an environment in which these human resources can demonstrate their abilities. Throughthese initiatives, we aim to be a company that people admire and a company where people gather over the long term.

Job Satisfaction Reform (Global)
In order to increase corporate value, we believe that it is important to be a company where all employees of the Tamura Groupcan fully demonstrate their abilities and work enthusiastically witha sense of fulfillment on a daily basis wherever they are in theworld. First, we began implementing psychological safety initiatives in FY2019 as a foundation for achieving job satisfaction. In

shown in the chart below (right side). We made progress towardachieving targets although we are still having issues with improving the ratio of non-Japanese in managerial positions.

Actions to create fulfilling workplace across the Group●

Ensuring an improvement in employee survey by taking actions based on PDCA cycle
Human rights andPsychological security
Updating programs
safety training
actions roll-out〉Health and Productivity Management Promotion Structure

Health and Productivity Management
Declaration (purpose of health andproductivity management promotion)

President and Representative Director

Management meetings

Tamura Corporation aims to be a one-of-a-kind company
that can provide customers with world-class products.
To this end, we believe that the health of employees working at Tamura Corporation is the foundation of management.
Therefore, we will work to create a healthy and rewarding
company where employees can lead fulfilling lives.

Industrial
physicianHealth Insurance
Cooperation
Association

Diversity in Japan

Health Management
Division

Related companies

Provision of
information

Employees

Masahiro Asada
President and Representative Director

Securing diversity in people, responding to the requirements of global
stakeholders and aiming to realize Aspiration for 2050
● Priority on the improvement of less-diverse Japan during the 13th plan
periodRatio among managers (FY2025/3)
Female: 10%

Non-Japanese: 5%

Mid-career: 50%

FY2022 (Actual)

FY2022 (Actual)
Positive: 49%

results of health checkups. Since the percentage of employees
who feel that sleep provides adequate rest is low, we are promoting employee education to improve sleep quality, efforts to further reduce overtime hours, etc.

Under the leadership of the President, the Company will promote
initiatives related to health management in cooperation with theindustrial physician and Health Insurance Association●

Improvement in engagement survey score
Improvement: 3pt p.a. for the GroupIn order to be a company where employees are satisfied with
their jobs, it is of utmost importance that each and every employee can continue to work in good health. Therefore, the Tamura
Group is working to improve health issues identified from the

FY2022, we introduced an engagement survey as an indicator tomeasure the effect of job satisfaction reform. The score achievedin this first survey was 49%. We will work to improve scores by analyzing the feedback from each employee and promoting bettermeasures.

Diversity in Human Resources (Japan)
Aiming to be a company that can meet the expectations ofglobal stakeholders, we actively promote the appointment of
women, non-Japanese, and mid-career hires to managerial positions. The results for the fiscal year ended March 31, 2023 are

Health and Productivity Management Initiatives

Female: 7.8%

Non-Japanese: 0.6%

Mid-career: 40.3%

Creating Environment That Supports Diverse Work Styles
As a measure to respond to diverse work styles, we have introduced a system that allows employees to freely take multi-purpose
leave such as for childcare, nursing care, and volunteer activities, aswell as paid leave on an hourly basis. In addition, we have established a system to reemploy employees who have left the company

for certain reasons including childcare, nursing care, and the relocation of their spouse, and introduced a new limited regular employee system in FY2022 to support work and family life balance.
We have also introduced a telecommuting system to improve infrastructure including the IT environment and regulations.

〉Tamura Group employees

Efforts to Enhance Human Capital

31

Revamping of the Personnel Management System

Psychological Safety

In April 2021, Tamura Corporation revamped its multi-track
personnel system consisting of managers, full-time employees,
and highly specialized professionals with the aim of becoming
an organization that can fully demonstrate its capabilities while
responding to the diversification of individual employees’ values
and work styles. Expecting the management level to demonstratehigh management skills and create an environment where employees can work with peace of mind, we are promoting measures
focused on the demonstration of team skills, such as the introduction of the concept of “psychological safety” and the implementation of 360-degree evaluations. Highly specialized personnel are
given stricter role definitions with the mission to provide competitive products and services to the market by demonstratinga high level of expertise. We practice a merit-based treatment
based on the results of their efforts.
In addition, we have reviewed the behavioral characteristics
of personnel evaluations in general so that all genders and age
groups can play an active role. In particular, for younger employees, we are reducing the grade level and significantly shortening
the minimum promotion year to provide opportunities to engage in more advanced work at an early stage.

In order to realize the satisfaction of each and every employee,
it is essential to have a team that ensures psychological safety. In
2019, we started activities to instill psychological safety and established the Psychological Safety Promotion Team as a Groupwide initiative. In 2022, by transforming our corporate culture
into a culture that encourages two-way exchanges of opinions
without being restricted by attributes such as age or position, weare creating a workplace where each and every employee strives
to achieve a higher level and raising the level of organizational
strength.

TAMURA REPORT 2023

China

China

VietnamChina

MexicoEU/U.S.

Mexico

Japan

China

South Korea

Psychological
SafetyPromotion
Team activity
Malaysia

China

Germany

Integrated report32Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceDirectors

4 8 6 115 2 7 3 9Masahiro Asada
Representative Director, President & CEO

April 1982
Joined Tamura Corporation
April 2003
Managing Director, Tamura Europe Limited
April 2005	Senior Executive Officer, Tamura Corporation
June 2007	Director/Senior Executive Officer,
Tamura Corporation
June 2009	Director/Managing Executive Officer,
Tamura Corporation
June 2016	Director/Executive Vice President,
Tamura Corporation
October 2018	Representative Director and Chairperson,
Koha Co., Ltd.
April 2019	President and Representative Director,
Tamura Corporation
July 2023	Representative Director, President & CEO,
Tamura Corporation (current position)

33

TAMURA REPORT 2023

Tamura Corporation transitioned to a company with an Audit & Supervisory
Committee following approval at the Annual General Meeting of Shareholders
held in June 2023.
At the same time, we introduced a CXO system to enhance governance andstrengthen the executive structure under the new system.

2

Yusaku Hashiguchi
Director, Managing Executive Officer & CFO

April 1986
Joined Tamura Corporation
June 2009
Senior Executive Officer, Tamura Corporation
June 2014	Director of Corporate Management Division(current position)
April 2015	Director/Senior Executive Officer,
Tamura Corporation
April 2018	Controller of Business Sectors at Head Office,Tamura Corporation (current position)
June 2018	Director/Managing Executive Officer,
Tamura Corporation
Non-Executive Director, Novell Crystal
Technology, Inc. (current position)
April 2022	Representative Director and President,
Koha Co., Ltd. (current position)
July 2023	Director, Managing Executive Officer & CFO,
Tamura Corporation (current position)

3

Shoichi Saito
Director, Senior Executive Officer & CTO

April 1988
Joined Tamura Kaken Corporation
April 2005
Executive Officer, Kaken Corporation
June 2007
Director/Executive Officer, Kaken Corporation
April 2010
Senior Executive Officer, Tamura Corporation
June 2013	Director/Senior Executive Officer,
Tamura Corporation
August 2015	Managing Director, Tamura Corporation
Singapore Pte. Ltd.
April 2020	Managing Director, Tamura Europe Limited
April 2022	In charge of R&D Strategy, Tamura Corporation(current position)
Head of R&D Strategy Division,
Tamura Corporation (current position)
October 2022	In charge of Security Trade Control Department(current position)
July 2023	Director, Senior Executive Officer & CTO,
Tamura Corporation (current position)

4

Yohei Tamura
Director, Executive Officer

April 2010
Joined Yokogawa Electric Corporation
April 2013	Transfered to Yokogawa Solution Service
Corporation
April 2016
Joined Tamura Corporation
April 2018	Managing Director, Tamura Electronics (M)Sdn. Bhd.
April 2019	Managing Director/President, Tamura
Electronics (M) Sdn. Bhd.
October 2021	Managing Director, Tamura Corporation(Thailand) Co., Ltd.
April 2023	Head of President’s Office, Tamura
Corporation (current position)
June 2023	Director/Executive Officer, Tamura Corporation(current position)

7

Masashi Imamura
Outside Director, Audit & Supervisory Committee Member

April 1979	Joined Sony Corporation (currently Sony
Group Corporation)
April 2014	Representative Director and President,
Sony Visual Products Inc.
April 2015	EVP of Sony Corporation, in charge of
production, logistics, procurement, quality,and environmental engineering platforms
February 2019	Joined Zensho Holdings Co., Ltd.
as Managing Executive Officer
President and Representative Director,
Zensho Factory Holdings Co., Ltd.
June 2019
Managing Director, Zensho Holdings Co., Ltd.
June 2022	Resigned from position at Zensho Holdings
Co., Ltd.
June 2023	Outside Director, Audit & Supervisory
Committee Member (current position)

5

Akira Kubota
Lead Outside Director, Audit & Supervisory Committee Member

April 1978	Joined the Ministry of International Trade and Industry(currently the Ministry of Economy, Trade and Industry)
September 2005	Director-General of Research and Statistics
Department, Economic and Industrial Policy Bureau
July 2006
Joined Olympus Corporation
June 2009	Executive Officer, Division Manager, Microtechnology
R&D Division, Corporate R&D Center
April 2014	Executive Officer, Division Manager, Microtechnology
R&D Division, Corporate R&D Center
April 2016	Executive Managing Officer, Unit Head,
Medical Affairs & CSR Office
May 2017	Executive Director, Nippon Control Equipment
Industries Association (current position)
June 2018
Outside Director, Tamura Corporation
June 2023	Outside Director, Audit & Supervisory Committee
Member (current position)

8

Akiko Toyoda
Outside Director, Audit & Supervisory Committee Member

April 1992	Joined Dai-Ichi Kangyo Bank
(currently Mizuho Bank)
September 2000	Assigned to Mizuho Holdings, Inc.
(currently Mizuho Financial Group, Inc.)
January 2001 Assigned to Mizuho Securities Co., Ltd.
October 2006 Joined Lazard Frères & Co.
October 2008 Joined Huron Consulting Group Inc.
July 2010	Japan arm becomes Trustees Corporate
Finance Advisory Co., Ltd.
December 2011 Joined Mizuho Corporate Advisory Co., Ltd.
October 2016 Joined PwC Advisory LLC (current position)
June 2023	Outside Director, Audit & Supervisory
Committee Member (current position)

6

Haruko Shibumura
Outside Director, Audit & Supervisory Committee Member

April 1992
The 46th Legal Apprentice of the Supreme Court
April 1994	Registered at the Daini Tokyo Bar Association
Joined Law Offices of Homma & Komatsu(currently Homma & Partners)
April 1999
Partner Lawyer (current position)
April 2009	Practicing-attorney-professor for civil advocacyof the Legal Training and Research Institute,
the Supreme Court
June 2015
Outside Auditor, NICHIREKI CO., LTD.
June 2018
Outside Director, Tamura Corporation
June 2019	Outside Director, Audit & Supervisory Committee
Member, Astellas Pharma Inc.
June 2019	Outside Auditor, NICHIREKI CO., LTD. (current position)
June 2023	Outside Director, Audit & Supervisory Committee
Member (current position)

9

Yuji Yokoyama
Director, Audit & Supervisory Committee Member

April 1987
Joined Tamura Corporation
April 2015	Director of Global Business Promotion Division,
Electronic Components
June 2015
Managing Director, Tamura Europe Limited
April 2017	Assistant Director of Corporate Management
Division
Executive Officer, Director of HPM Business, Electronic
April 2019
Components Business Segment, and Managing
Director/President, Tamura Europe Limited
April 2020	Assistant Director of Electronic Components(in charge of Europe and US operations)
September 2020 Auditor
June 2023	Director, Audit & Supervisory Committee
Member (current position)

Integrated report34Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceDiscussion on Corporate Governancetively express my opinion when they should step on the

ly-appointed director, I am also feeling firsthand theaccelerator a little more.

desire to drastically change the Company.

Kubota: As a company that has been in business for 100

A company like Tamura, which has been in businessyears, it seems that there is a tendency to think of workfor 100 years, has something that can be called “coreas an extension of conventional work. However, we mustcompetence.” Although we should continue to value

move past that mentality to develop our business. I think

this core competence, in an era in which the world is

we need to find out more about the strategy internal-

experiencing major changes, we cannot survive just byly, so I would like to hold discussions with executives todoing the same things we have done in the past. Now

stimulate efforts.

that Tamura has decided to change itself, I would like to

Imamura: In these confusing times, it is important notuse my own experience to give advice on what should

to silently carry out what the top management says, but

be changed and what should be kept as is to improve

be able to think proactively and speak out. The CXO sys-

corporate value in the future.

tem is a new mechanism to achieve this, and I regard thisToyoda: I have been involved in the planning of portfo-

new step forward very positively.

lio strategies throughout my career, so I hope to use that

Shibumura: We have high expectations for the Execu-

experience to help improve corporate value. Let’s thinktive Officer Committee and the CXO system. I would like

Akira Kubota

Haruko Shibumura

Masashi Imamura

Akiko Toyoda

about what kind of business portfolio Tamura should

to see a great deal of discussion about corporate strate-

Lead Outside Director, Audit &Supervisory Committee Member

Outside Director, Audit &Supervisory Committee Member

Outside Director, Audit &Supervisory Committee Member

Outside Director, Audit &Supervisory Committee Member

have in 10, 20, or even 50 years. Some means of achiev-

gies for creating the kind of Tamura that we should be,

ing the ideal business portfolio include M&As while

including among the younger generation.

Form of Corporate Governance That We
Are Seeking under New Directors System
Company issues and the roles of Outside Directors

Tamura Corporation transitioned to a company with an Audit & Supervisory Committee following approval at the Annual
General Meeting of Shareholders held in June 2023. At the same time, the directors system changed from a system with
two outside directors and two outside auditors to a system with four outside directors. Directors Akira Kubota and Haruko
Shibumura, who were appointed in June 2018, were joined by new directors Masashi Imamura and Akiko Toyoda, all ofwhom are members of the Audit & Supervisory Committee. We made major changes to our governance structure before
the 100th anniversary of our founding to move the company forward into the next era by increasing the driving force ofour business and adapting to external changes. For this discussion, all outside directors came together to exchange theiropinions on current conditions at the Tamura Corporation, issues that the Company is facing, the direction to head in under
the new governance structure, what each director is determined to do, and other topics.

35

Audit & Supervisory Committee members. As a new-others are development investments aimed at organic
growth. I would be happy if we as outside directors canhelp invigorate discussions within Tamura by proposing
various measures from an external perspective.

Audit & Supervisory Committee first-year
policies and initiatives
Shibumura: It is said that an Audit & Supervisory Committee can either improve or worsen a company. If suc-

The functions of the Audit & Supervisory
Committee and Executive Officer Committee;
Introduction of a CXO systemcessful, governance will be strengthened, improving the

Shibumura: An extremely important decision that Ta-

been better to have an Audit & Supervisory Board. In

mura made was making a transition to a company withorder to make improvements, we Audit & Supervisory

an Audit & Supervisory Committee. This is because it isCommittee members, must properly share information

a structure that requires preparedness on the executive

with persons who execute business, and management. I

side. From now on, the Board of Directors will have tothink we must be able to see where and who is trying todelegate a large amount of executive authority, anddo what and where the challenges are.

balance between governance and business activities. If
conditions become worse, it means that it would havethe delegated executive officers will have to decide on

The role of the Audit & Supervisory Committee is tomatters and perform work independently. The Audit &support execution in operating the Company with a

Direction to pursue in order to enhance
corporate value and related issues

Shibumura: In order to increase corporate value, it isSupervisory Committee audits the legality and appro-

sense of speed. In order to do so, we need to have theimportant to clearly establish a medium- to long-term

priateness of this business execution. Auditing the ap-

executive side feel that it was a good decision for Tamu-

Kubota: At first, a fundamental effort behind enhancing

corporate strategy, clarify the authority and responsibili-

propriateness of business execution involves advisingra Corporation to become a company with an Audit &corporate value is the successful implementation of theties of each management team, and move forward as one.

the executive side to “step on the brakes” when they are

Supervisory Committee. This year is the first step toward

13th Medium-term Management Plan (* three-year period fromIn order to achieve this, we are currently promoting vari-going too far with efforts and “step on the accelerator”

that, and at first I would like to exchange opinions in or-

April 2022 to March 2025). As this Medium-term Managementous measures, such as organization building. Since somewhen conditions appears to be stagnant. I want to see

der get to know each other. I think the Audit & Supervi-

Plan was discussed during Board of Directors meetingsof those measures are measures that should be taken tothis system get on track as soon as possible.

sory Committee’s first year is important because of thequite early on, we took time to consider strategies andachieve the medium- to long-term vision, I would like for

At the same time, the introduction of the CXO system

initiatives. The Board of Directors monitors the progress

us to make it possible for the entire Group to know what

has made the responsibilities and authority of manage-

Imamura: The main company roles are held by manage-of these initiatives, provides advice as necessary, and re-direction the Company should be heading in.

ment more clear. Although the responsibility will bement and employees. Since it is important for Tamura toviews them in accordance with changes in the external

Imamura: In transitioning to a company with an Audit &heavier, it should also be rewarding.

become a company that everyone can be truly proud toenvironment. In this way, I think it is important to clarify

Supervisory Committee, the Company made a very

Toyoda: It is ideal for the “accelerator and brakes” towork for, I would like to be involved in activities to help

the direction in which the Company is heading.

unique decision to have all outside directors become

function in a well-balanced manner. I would like to ac-achieve that goal. Reforms must be carried out with a

TAMURA REPORT 2023

importance of building trust during this time.

Integrated report36Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceDiscussion on Corporate Governance

Akira Kubota

Imamura: I think the worst thing that can happen is

Akiko Toyoda

Policies and initiatives of the Nomination &Remuneration Advisory Committeethat people doing the same things as others become
leaders doing the same things as others. A leader does

Akiko Toyoda has been engaged

not need to be the same as everyone else. They needin cross border and domestic M&A

as well as experience and insight in

Kubota: Improving the executive selection process andbusiness management, including

developing a succession plan are among the Nomina-

to possess a levels of knowledge and experience that

research and development, at ation & Remuneration Advisory Committee’s major chal-

are second to none. I believe that the most dangerous

Since 2018, he has contributed tolenges. With regard to the appointment of officers, we

person is someone who has moved up to the position

strengthening the functioning ofare considering a style in which a wide pool of candi-

of President without making major mistakes throughout

In 2023, she was appointed as

dates are selected and then narrowed down. For this, it

their career at the Company. Therefore, I want to create

Director and Nomination andand Nomination and Remuneration
Advisory Committee of theis necessary to review the criteria for appointing officers

a system that can properly evaluate those who have

Company with an independentand determine what kind of appointment process to im-failed and experienced a bottoming out. I would like toplement and when to implement it.

see useful information gathered so that the Nomination

Shibumura: Succession plans are difficult to deal with

& Remuneration Advisory Committee can recommend

because they do not go as planned at all. So, as Mr. Kubo-

that a particular person is the right person to enhance

sense of speed. If not carried out correctly, however, itta stated, I think it is important to make preparations in

Tamura’s corporate value in the future.

in the field will proactively voice their opinions. We Audit

will be difficult to reverse the damage done. That said,

advance. It is necessary to find human resources not

Shibumura: I completely agree with what Mr. Imamura& Supervisory Committee members, want to be the driv-

reforms must be carried out correctly and swiftly. If mis-

only to serve as next-generation management but also

said about uniformity being bad. I think it is not gooding force for achieving this, and I hope that executives

takes are made in this area, we must start over immedi-

for the generation after that, and consider how to train

from a governance standpoint that the executives of awill play a central role in this.

ately. I think the biggest risk is not to do anything at all.

them. If there is a shortage of human resources, it may

company are all similar people of a similar generation.

Toyoda: I would like you to ask yourself if that is the rightToyoda: There is no 100% right answer when it comes tobe necessary to consider the option of acquiring themIn that sense, the other issue is definitely the promotion

way to go about things. I think there may be opposition tocorporate management, so it is important to repeated-from outside the Company. I think we should properlyof diversity, including the appointment of young people,

being told by people outside the Company who are unfa-

ly discuss matters and draw conclusions with a sense ofreport the discussions of the Nomination & Remunera-

non-Japanese, and women. Tamura has a lot of talented

miliar with what is going on within in, but I want them tounderstanding. I think it would be great if people outsidetion Advisory Committee to the Board of Directors andpeople, so we have to think together about how we canlisten to us at least a little. If we get feedback on that, I think

the Company like us could be the catalyst for moving

make it transparent about where and what decisions are

get young people, non-Japanese, and women to play anthere is something we can tell them from our standpoint.

the Company forward. For this, I would like to create

made.

active role.

I would be happy if we could open our hearts and have

many opportunities to talk with people inside the Com-

Toyoda: Selecting candidates for executive positions ispany and exchange opinions.

also a means of conveying the message to young peo-

Kubota: I would like to propose that the Company’s de-ple the type of person that will be appointed to import-

cision-making processes by reorganized. Until now, top
management has been strong, so I could not say that

Akira Kubota has a wide range ofexperience in government agencies,

major global company.

the Board of Directors as a Director

perspective.

financial advisory services for many
years and has extensive knowledgeof corporate business portfolio
strategies, finance and accounting,taxation and legal affairs.

Remuneration Advisory Committee
Member of the Company.

open conversations with each other.
Imamura: I want employees to be aware that they play amain role and that they are responsible for this Company.

ant positions. Since it shows the direction the company

Expectations of executive sections andcooperation with the Board of Directors

is heading, I think the Nomination & Remuneration Ad-

Shibumura: Now, I want to see all top management,

various things, and we need to gather a wide range of in-there is a disposition to question management. Fromvisory Committee plays a really important role. I want tofrom the CEO down, to exercise a new level of author-

formation. In such a situation, I hope that employees can

now on, executives should be more open about the

support candidates who can look at the Company fromity. I hope that they will take this opportunity to create

make good use of outside directors.

reasons for management decisions, and to this end, it

a Company-wide and long-term perspective.

a climate in which they will climate in which employees

Kubota: The employees of Tamura Corporation are

In order to improve the Company, we need to think about

will be necessary to inspect and improve the function

highly conscious of making solid products, and I feel thatof meeting bodies.

this is a strength of the Company. On the other hand,

Imamura: I feel that Mr. Kubota has just said something

employees may be lacking the ability to judge and actvery important. We often hear the word “conjecture” inthe news about governance failures, etc. It is difficult to
see where and who decides what, so subordinates surmise the intention.
Shibumura: I also think that is a very important point.

Haruko Shibumura

Masashi Imamura

As a lawyer, Haruko Shibumura has

Masashi Imamura has helda high level of insight into corporate

important positions in a major

legal affairs in general, including

global electronics manufacturer

corporate governance and risk

in Japan and in the restaurant

management, as well as extensive

industry, and has extensive

quickly without fear of change. In order to change this,
it is necessary for each employeeto be aware of it, but I
think it is more important to create a system that changes the corporate culture.
The key to this is the management team on the exec-

experience as an outside director.

business experience in areas

utive side. I want the management to change the com-nizations is paramount to governance. Nothing should

Since 2018, she has contributed tosuch as manufacturing, logistics,

pany by making quick decisions, taking action, or taking

ever be out of reach or hidden, even if it is not a large

strengthening the governance of the

procurement, and quality, asCompany from Board of Directors

well as knowledge of corporate

new challenges. The CXO, who is below the CEO, has theas a Director and Nomination

management.

role of coordinating this. The CEO and CXO will formulate

and Remuneration Advisory

In 2023, he was appointed asCommittee of the Company with an

Director and Nomination &a large strategy and lead the executive team while indi-

independent perspective.

Remuneration Advisory Committee

cating the direction to advance the business toward that

Member of the Company.

goal. I hope that will be realized.

Transparency in decision-making processes and orga-

matter.
Visualizing issues that are not apparent is the first stepin governance, but many companies have not done so.
As I have been involved in governance for many years, I
don’t think conjecture produces anything useful.

37

TAMURA REPORT 2023

Integrated report38Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceCorporate Governance
Basic Views on Corporate Governance

Board of Directors

The Tamura Group's basic management philosophy is to view shareholders and other stakeholders with importance. Management team,
entrusted by shareholders to manage the Company, has a strong sense of mission and a high sense of corporate ethics, and aims topromote compliance and maximize corporate value by improving management efficiency and transparency. We believe that corporate
governance serves as the foundation that helps with these initiatives.

History of Corporate Governance Enhancement
Since introducing outside directors in 2002, we have worked toincrease our ratio of outside directors. In addition, we introduced
an executive officer system in 2005 to separate supervision andexecution roles so that the Board of Directors can perform its
functions more effectively.
In June 2023, we transitioned to being a company with an

Audit & Supervisory Committee with the aim of further improving
governance. The CXO system was also introduced in July 2023. Inorder to increase corporate value, we are promoting initiatives inboth the enhancement of the supervisory system of the Board of
Directors and the strengthening of the executive system.

〉History of Corporate Governance Enhancement〉Changes in Board of Directors Composition by Year

1994
2002
2005

2007
2015
2016
2018
2022

2023

The Board of Directors makes decisions on matters stipulated
by laws and regulations and important management-related
matters, and supervises the execution of duties by directors. The
Board of Directors consists of nine members. Four of these directors are independent outside directors, accounting for more than
one third of the Board of Directors. The Group has established its
own Independence Criteria for outside directors, available on its
website. The Group shall select such candidates of independent
outside directors who meet our independence Criteria in addition to those set by the Companies Act and the Tokyo Stock Exchange. The Company holds Board of Directors meetings once amonth, and extraordinary meetings of the Board of Directors areheld as necessary.

Audit & Supervisory Committee

Added outside Audit & Supervisory Board member to the Audit &Supervisory Board
Added outside director to the Board of Directors (one outside
director among ten directors)
Introduced executive officer system
Number of directors reduced from 10 to 7 (one outside director
among seven directors)
The lump-sum retirement allowance system for directors wasabolished, and a performance-linked remuneration system and astock option-based remuneration system were introduced.
Established voluntary Executive Compensation Committee
Established CSR Management Committee
Established Nomination & Remuneration Advisory Committee
Formulated independence criteria for outside directors
Started Board of Directors effectiveness evaluations
Appointed female outside director and expanded the number of outside
directors to three (three outside directors among nine directors)
Abolished the stock option-based remuneration system andintroduce the stock remuneration system
Changed the name of the CSR Management Committee to
Sustainability Management Committee
Transitioned to a company with an Audit & Supervisory
Committee (four outside directors among nine directors)
Introduced CXO system

Outside Directors

Ratio of Outside Directors

Internal Directors

44%
38%
33%
7
22%

6

9
9

25%

5

6

5

6

14%
10%

0%

1

1

2001

2002

2005

2

2

2015

2016

3

3

2018

2019

4

2023 (year)

The Audit & Supervisory Committee makes decisions on audit
policies, methods for auditing the status of operations and assets,
and other matters related to the execution of duties by Audit & Supervisory Committee members, receives reports on important audit-related matters, and prepares audit reports. The Audit & Supervisory Board members may also make decisions on the selection anddismissal of full-time, selected, and specified Audit & Supervisory
Committee Members, as well as on the content of proposals submitted to the General Meeting of Shareholders regarding the selection and dismissal of accounting auditors. In addition, the committee has the right to consent to the selection and remuneration of
directors who are Audit & Supervisory Committee members, andthe right to express opinions on the selection and remuneration of
directors who are not Audit & Supervisory Committee members. In
principle, the Audit & Supervisory Committee holds meetings oncea month, and extraordinary meetings of the Audit & Supervisory

Corporate Governance Framework〉Corporate Governance Framework
General Meeting of Shareholders
Nomination & Remuneration
Advisory Committee
Sustainability
Management Committee

Directors
Appointment/Dismissal
Consultation
AdviceConsultation
AdviceReportExecution of Operations

Directors
Appointment/Dismissal

Board of Directors

Supervision

Audit, etc.

President
Executive Officer Committee

TAMURA REPORT 2023

Appointment/Dismissal

Audit & Supervisory
Committee

Appointment/
Dismissal

Business Divisions Head Office Functions
Group Companies

39

Executive Officer Committee
The Company has adopted an executive officer system to accelerate management decision-making and to build a systemthat contributes to the efficient execution of duties by directors.
The Executive Officer Committee, within the scope of authority
delegated by the Board of Directors, receives reports on the execution of important operations of the Tamura Group and makes
decisions on important matters or decides on matters to bebrought before the Board of Directors.

Nomination & Remuneration Advisory Committee
With the objective of making fair and transparent decisions on
the nomination and compensation of board members, etc., theTamura Group has established a Nomination & Remuneration Advisory Committee which holds meetings several times a year. The
Board of Directors will fairly and transparently deliberate and reportto the Board of Directors on nominations for directors and executive officers, and on compensation for directors (excluding Audit& Supervisory Committee members), executive officers, directors,
advisors, and counselors. The Nomination & Remuneration Advisory Committee is composed of the President and Representative
Director and three independent outside directors, chaired by the
Lead Outside Director.

Sustainability Management Committee
The Sustainability Management Committee reports on overall sustainability, including compliance and CSR, to the Board of
Directors. Sustainability Management Committee meetings areheld twice a year.

Nomination of Director Candidates
Nomination Policy and ProceduresSupervision System

Committee are held as necessary.

ReportReportAudit

Cooperation/
ReportAccounting Auditor
Evaluation

Cooperation

Cooperation

Integrated Audit DivisionInternal Audit

Audit

The Board of Directors shall consist of at least one-third ofoutside directors, and strives to select persons who meet theindependence standards set by the Tokyo Stock Exchange andthe Company. In addition, by adopting an executive officer system, which separates execution and supervision, we ensure thatthe Board of Directors has an appropriate number of members
to function. The appointment and dismissal of directors and executive officers is carefully deliberated by the Board of Directors
after report from the Nomination & Remuneration Advisory Committee based on the standards for appointment and dismissal of
directors and executive officers.
Director Candidates (non Audit & Supervisory Committee
member candidates)
The Company appoints candidates to the position of director
who have the knowledge, experience, and qualifications to contribute to the fulfillment of the functions of the Board of Directors
in consideration of the Company’s business content, scale, management environment, etc., while taking into consideration thebalance and diversity of the Board of Directors as a whole. The

Nomination & Remuneration Advisory Committee recommends
candidates based on the nomination standards for directors. The
Board of Directors then carefully deliberates and decides whether
to nominate the candidate.
Director Candidates (Audit & Supervisory Committee
member candidates)
Having the qualifications to contribute to improving thesoundness and transparency of management by auditing thebusiness execution status of Directors (excluding Audit & Supervisory Committee members) from a fair and objective standpoint, taking into account the Company’s business content, scale,management environment, and auditing system, etc. in addition,
candidates for Directors who are Audit & Supervisory Committee
members are appointed personnel who have extensive knowledge and experience in business administration and business operations. The Nomination & Remuneration Advisory Committee
recommends candidates based on the nomination standards for
directors. After careful deliberation and resolution by the Board of
Directors, a proposal is made to the Audit & Supervisory Committee and obtains its consent to make a decision.
Integrated report40Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceCorporate Governance〉Key Experiences and Capabilities of Directors (Skill Matrix)
Administrative Skills
Name

Other posts

Representative Director, President & CEO

Board Chair / Nomination & Remuneration Advisory
Committee Member

Masahiro Asada
Yusaku Hashiguchi
Director, Managing Executive Officer & CFO

Shoichi Saito
Director, Senior Executive Officer & CTO

GlobalExperience

●

●

●

●

●

●

●

●

Yohei Tamura

Lead Outside Director, Audit andSupervisory Committee Member

R&D/
Technology

Lead Independent Outside Director, Nomination &Remuneration Advisory Committee Member●●

Management skills

Manufacturing/
Quality

Sales/
Marketing●●

Legal/
Risk Management

Outside Director, Audit & Supervisory
Committee Member

Akiko Toyoda
Outside Director, Audit & Supervisory
Committee Member

Independent Outside Director, Nomination &Remuneration Advisory Committee Member

Yuji Yokoyama●

Evaluation
Viewpoint〉Composition of the Board of Directors
Ratio of Outside Directors●●●

Ratio of female Directors

Calculation formula: M onthly remuneration x base months x ratio of remuneration by position according toperformance evaluation points
 erformance evaluation points:
P
Percentage of planned achievement of each evaluation
indicator (up to 120%) x weight●

Increase inprofitability

●

●

●

●

Director, Audit & Supervisory
Committee Member◦●

Independent Outside Director, Nomination &Outside Director, Audit & Supervisory
Remuneration Advisory Committee Member, Lawyer
Committee Member
Independent Outside Director, Nomination &Remuneration Advisory Committee Member

Bonuses for directors (excluding directors who are Audit & Supervisory Committee members) are calculated according to the performance of the fiscal year in accordance with the procedures stipulated in the director evaluation
regulations and director remuneration regulations. Sales, profit attributable to owners of parent, ROE, etc. have been
selected as evaluation indicators. These evaluation indicators were selected from the viewpoints of evaluating theimprovement of profitability and shareholder value.

●

Haruko Shibumura
Masashi Imamura

Finance/
Accounting

Fixed remuneration for each individual director as stipulated in the director remuneration regulations●●

Director, Executive Officer

Akira Kubota

Executive Skills

Corporate
Management

1 Monthly
Remuneration
2 Performancelinked
Remuneration●●

Increase in shareholder value●〉C omposition of the Audit &Supervisory Committee〉Composition of theNomination & Remuneration
Advisory Committee

Ratio of Outside Directors

Ratio of Outside Directors

Evaluation Indicator

Weight

Method of determining the payment ratio by position
Evaluation
Rank

Performance
Evaluation Range

Representative
Director

Director

Sales

20%

110 or above

S

116%

112%

Operating profit

20%

100 to 109

A

100%

100%

Profit attributable to owners of parent

20%

80 to 99

B

84%

88%

Operating profit to net sales ratio

10%

60 to 79

C

67%

71%

“Only One” product sales ratio

10%

D

50%

54%

ROA

10%

ROE

10%

Less than 60

100%

3 Stock
Remuneration

This scheme is a trust established by the Company through contributions of money (hereinafter “Trust”). The Company acquires the Company’s shares, and the Company’s shares equivalent to the number of points granted by theCompany to the directors are delivered to the directors through the Trust. There are two types of points awarded
under this Trust: Fixed points based on position, etc., and performance-linked points based on position, achievementof performance targets, etc.
In principle, directors will receive delivery of the Company’s shares at time of retirement.

Compensation of Directors who are Audit & Supervisory Committee Members
Outside Directors

Female Directors

Outside Directors

Outside Directors

4/9

2/9

4/5

4/5

44%

22%

80%

80%

Remuneration, etc. for directors who are Audit & Supervisory Committee members is stipulated as monthly remuneration in the Audit& Supervisory Committee renumeration regulations. The monthly remuneration is determined through discussions among the Audit &Supervisory Committee members, taking into consideration the director’s social position, contribution to the Company, and circumstancesof their appointment.
Revisions of the Remuneration System due to Our Transition to a Company Structure with an Audit & Supervisory Committee
Due to our transition to a Company structure with an Audit & Supervisory Committee in June 2023, the officer positions subject to receiving remuneration and the maximum amount of remuneration have been revised.
●

Compensation of Director Remuneration
Compensation of Directors (excluding Directorsthat are Audit & Supervisory Board members)
The Company has established a policy for determining the details of remuneration, etc. for individual directors (excluding Directors that are Audit & Supervisory Board members) in the Director
Remuneration regulations. In order to ensure fairness and transparency, the Nomination & Remuneration Advisory Committee,
chaired by the Lead Outside Director and composed of a majorityof outside directors, reviews and reports on the policy, which isthen decided by a resolution of the Board of Directors.
Remuneration for directors consists of monthly remuneration,
performance-linked remuneration, and stock remuneration. The
remuneration ratio by type is determined in a way that contributes to the provision of sound incentives for improving performance in each fiscal year and increasing corporate value over the
medium to long term.

Variable Remuneration
Short-term Incentives

1 Monthly Remuneration: 64%

Monetary remuneration

Non-monetary
remuneration

Monthly Remuneration

Performance-linked Remuneration●

After revisions

Monetary remuneration

Directors (excluding Directors that are Audit & Supervisory Board members)

Monthly Remuneration

Stock remuneration

Remuneration Limit: 250 million yen

Performance-linked Remuneration

Non-monetary
remuneration

Stock remuneration

Remuneration Limit: 200 million yen

Outside Director

Directors that are Audit & Supervisory Committee members

Monthly Remuneration

Monthly Remuneration

Remuneration Limit: 50 million yen

Remuneration Limit: 98 million yen

Audit & Supervisory Board Members

Monthly Remuneration
Remuneration Limit: 48 million yen

Total Amount of Remuneration, etc. for Directors and Audit & Supervisory Committee Members (FY2022)〉Remuneration structure (when KPIs are fully achieved)
Fixed Remuneration

Before revisions

Directors (excludes Outside Directors)

2 Performance-linked
Remuneration: 26%

Medium- to
Long-term
Incentives

3 Stock
remuneration

Total amount of Remuneration by Type (Millions of yen)

Category

Total amount of
Remuneration(Millions of yen)Monthly Remuneration

Performance-linked
Remuneration

Non-monetary
remuneration, etc.

Number of Eligible Officers

Directors (numbers in parentheses pertain tooutside directors)

178 (24)125 (24)

48 (－)

4 (－)

8 (3)

Audit & Supervisory Board members (numbers inparentheses pertain to outside members)

27 (11)27 (11)

－ (－)

－ (－)

3 (2)

Note 1: The breakdown of the total amount of non-monetary remuneration, etc. is the amount of expenses, totaling four million yen, recorded for the fiscal year under review for the stock
remuneration scheme, which is recorded as expenses over multiple years according to the period covered by the remuneration.
Note 2: The amount paid to directors does not include employee salaries for directors who concurrently serve as employees.

41

TAMURA REPORT 2023

Integrated report42Creating Tamura Group’s Value

Strategy by Business

Sustainability Strategy

Corporate GovernanceRisk Management/ComplianceCorporate GovernanceRisk Management

Effectiveness Evaluation of Board of Directors
With the aim of improving the effectiveness of the Board of Directors, analysis/evaluation of the Board of Directors is conducted every year.

Analysis and Evaluation Method
For the fiscal year ending March 31, 2023, we evaluated theeffectiveness of the Board of Directors as a whole, including theNomination & Remuneration Advisory Committee, which was established on a voluntary basis. We entrusted an external organization to conduct a anonymous questionnaire survey of all directors
and Audit & Supervisory Board members using a combination ofmultiple choice responses and open-ended responses (internaland external officers were provided with different questions),
compile the responses, and conduct analysis and evaluation. At ameeting of the Board of Directors held June 2023, the Company
received a report on the results of the survey and discussed improvement measures.

Initiatives to Address Issues Identified in thePrevious Fiscal Year
Regarding issues identified as issues based on the evaluationof the effectiveness of the previous fiscal year (fiscal year ending
March 31, 2022), the Board of Directors has decided to secure
time for deliberations, discuss the CEO succession plan, etc., aswell as executive training. It reviewed the agenda items and set
the annual agenda in advance, promoted the sharing of discussions at the Nomination & Remuneration Advisory Committee
and the CSR Management Committee (currently the Sustainability Management Committee) with the Board of Directors, and enhanced opportunities for participation in external seminars andin-house training.

Summary of Results of Effectiveness Evaluation ofBoard Meetings for the Fiscal Year Ending March2023
As in the previous year, each Director and Audit & Supervisory Board Member expressed many constructive and motivating
opinions, and the overall evaluation was positive.
It was also confirmed that the Board of Directors is operating

in an appropriate manner. In addition, it was confirmed that therisk management system is properly in place and its operation isappropriately supervised, that outside directors and outside auditors contribute to constructive discussions at board meetings,
that the board of directors considers issues multilaterally and fully,
and that they support management’s decision-making. The Boardof Directors also supports management’s decision-making. Basedon the above, we confirmed that the effectiveness of the Company’s Board of Directors is ensured.

The Tamura Group engages in risk management with the aim of maximizing corporate value by comprehensively, inclusively, and strategically identifying, assessing,and optimizing various risks that could affect the Company. We have establishedrisk management and crisis management rules, whistleblowing rules, information
management rules, and guidelines for establishing Group emergency measures,and have established a management system. In recent years, a variety of risks haveemerged that have had a significant impact on society and the economy. The
Tamura Group is also working to develop its traditional framework, which focused onrisk and crisis management led by each department, into an integrated risk management system that identifies and manages company-wide risks.

Integrated risk management

Risk Management
Risk management
Responds to critical risks
PDCA implementation
during normal times

Crisis Management
Alarm Escalation
Internal reporting
Crisis response, etc.

Future Challenges
Based on the progress made in addressing the issues identified as challenges based on the effectiveness evaluation in theprevious fiscal year (fiscal year ended March 31, 2022), namely,
deliberation time at Board of Directors meetings, discussion ofmanagement succession plans, etc., and training of officers, it was
confirmed that further efforts will be needed in the future. It wasalso confirmed that there was a need to enhance feedback on
dialogs with shareholders (investors).

Future Initiatives
Based on the results of the effectiveness evaluation discussed
above, improvement measures include: Implementation of aquestionnaire survey of each director regarding agenda items
and time allocation and setting agenda items based on the results; enhancement of explanations by the chair of the Nomination & Remuneration Advisory Committee to the Board of Directors regarding an overview of the agenda and deliberations of theNomination & Remuneration Advisory Committee; expansion ofopportunities for online seminars for all directors. In addition, we
will promote initiatives to enhance opportunities and means forproviding IR/SR information to the Board of Directors.
Going forward, in order to further improve the effectiveness of
the Board of Directors, we will continue with these initiatives.

Risk Management
The Tamura Group has established the Sustainability Management Committee as an advisory body to the Board of Directors,
and has established a system to supervise risk management as
part of sustainability-related matters. In the executive division, theRisk Management Committee was established in October 2023
as an advisory body to the Executive Officer Committee. The Risk

EntityBoard of Directors
Determines basic
policies

Roles

Determines critical risks
Implements/supervises
risk management
process

Sustainability
Management
Committee
Reports on basic
policies

Management Committee is chaired by the Managing Executive
Officer, Director & CFO, who is responsible for sustainability. Under this system, we will conduct a process of risk assessment,
determination of critical risks and response plans, response andmonitoring.

Executive Officer
Committee

Risk Management
Committee

Supervisory Division

Determines possible criticalrisks that have undergone
risk assessment

Reports on risk management Conducts risk
plans for the entire Company management within
division
Conducts risk

Instructs/supervises
countermeasurecountermeasure progress
management

Responds to critical risks
Reports on progress

Crisis Management
In the event of a crisis that may affect management, or if it becomes aware of the possibility of such a crisis, the Tamura Group
has a system called alarm escalation that allows information to
be immediately communicated to management and the Board of
Directors, in addition to reporting through the regular reporting

line. In the event of an emergency that poses a serious risk tobusiness continuity, we will establish a crisis management task
force headed by the Representative Director, President & CEO torespond to the crisis through a Company-wide system.

Compliance
The Tamura Group’s basic management philosophy is to shareholders and other stakeholders with importance. Management team,
entrusted by shareholders to manage the Company, has a strong sense of mission and a high sense of corporate ethics, and aims to promote compliance and maximize corporate value by improving management efficiency and transparency. In accordance with its Corporate
Philosophy, the Tamura Group has established the Ethics Compliance Standard, establishing a system to ensure that all employees of the
Tamura Group comply with laws, regulations, social norms, the company’s Articles of Incorporation, and rules and regulations. In addition,in accordance with sustainability system regulations, the Sustainability Management Committee has been organized to establish and supervise the sustainability promotion system, including compliance. Furthermore, the Company has established a whistleblowing system asa point of contact for reporting or consultation regarding illegal or potentially illegal acts, etc., and strives to maintain and strengthen thesystem to ensure appropriate business execution. In addition to the internal contact point, we have established an independent contact
point handled by a non-executive director and a contact point for business partners as channels to report issues.

43

TAMURA REPORT 2023

Integrated report44

■■ Company Data

Main Financial and Non-financial Data
Consolidated Financial Results

Non-financial results〉Net sales〉Operating profit/Operating profit to net sales ratio(Millions of yen)

(Millions of yen)

120,000

6,000

100,000

107,993
87,00880,00079,65588,32873,90640,000

2,000

FY19

FY20

FY21

0

FY22

(Millions of yen)

Ordinary profit

Ordinary profit to net sales ratio

5.6%

5,000

4.0%

4,000

3.2%

4,329

2,000

FY18

FY19

50,000

2,384

2,001

FY20

FY21

8,000

5

2.2%

FY20

2

FY21

FY22

Profit attributable to owners of parent

1

5

0

0

47,886

23.9

FY22

(%)

ROE

49,9371,880 (41%)
FY18

FY19

FY20

FY21

FY22

〉Ratio of women in managerial positions (Tamura Corporation)

(MWh)

(%)

8

2,500

9

4,000

4

1,500

-2,000

1.3%

1.9%
0.7%
-0.1%

1,024
542
FY18

FY19

2

2,080

FY21

500

5,000

310

FY19

FY20

2
1

68
-2

0

FY18

(Millions of yen)

5,902
4,522

320

FY21

0

FY22

〉Social contribution activity expenses (consolidated)

6,119

60

1.4%

4,180

4,000

40

3,357

32

3,000

Social contribution activity expenses
vs. ordinary profit ratio

36

2,000

20

0

1,000

10

0

0

(%)
2.0

1.2%

FY18

FY19

FY20

FY21

FY22

-3

(yen)

660

14

644.4964012
10607.89

8

600

FY19

Dividend per share
During Period

10
5

6

583.09570.00

FY18

FY20

4

565.34

5

2

560

0

45

FY20

FY21

FY22

〉Ratio of mid-career employees in managerial positions(Tamura Corporation)
(%)

40

37.5%

39.2%

42.6%

45.0%

41.4%

33
1.0

30

0.7%
20

FY22

(%)

10

121.0%

5

8

80.1%
5

Payout ratio

10

10

5

5

FY19

FY20

FY21

FY22

0
0

FY18

FY19

FY20

FY21

FY22

For details on non-financial data, please visit our website.

140

https://www.tamuracorp.com/sustainability/data/index.html

120
100
80
60

5

3

FY18

* Calculated by converting payroll costs of those who are involved in offering money, goods,
or facilities, and activities into monetary amounts

End of the year

5

40.0%
5

12.8%

40
20
0

540
520

FY21

〉Dividend per share/Payout ratio

(yen)

580

FY19

10

〉Net assets per share

620

FY18

50

1.4%
29

30

3

60

1.6%

50

52,633

3.9%

3
0

FY22

5.1%

4

2,047

-84

FY20

5

1,230

-0.2%
-10,000

7.2%
6.3%

7

1,000

(Millions of yen)

12

0

8.2%

8

6

6,000

1.2%

4,576
China

〉Use of renewable energy (self-produced energy)

2,000

15

6

Total

1,061 (23%)* Emission factors: Japan (market basis), others (IEA Emission Factors 2021)

6

0

0

Other AsianCountries(%)

Ratio of profit to net sales attributable
to shareholders of parent

1,182 (26%)

453 (10%)

10

6,000

2

4.0%

10,000

FY19

31.7

15

4,829

1,564

6,397

9

46,409

7.4%

2,000

30,00046,764

FY18

1,969

30.1

3

1.8%
2,289

28.7

25

〉Capital expenditure

Shareholder’s equity (end of term)

14.3%

30.6
30

5

(as of March 31, 2023)

Japan

US and Europe

20

2.7%

4,600

(Millions of yen)1

40,00020,000

2.9%

6〉ROE (Return on equity)(Millions of yen)

35

4

(%)

3

2.3%

4,848

1,000

(1,000 t-CO2)

6〉Number of employees by region (consolidated)

4

3.2%

3,000

2,510

(%)

〉Profit attributable to owners of parent/Ratio of profit to net
sales attributable to shareholders of parent〉Ordinary profit/Ordinary profit to net sales ratio

0

4.5%

1,000

20,000

6,000

5.3%

4,000
3,000

FY18

Operating profit to net sales ratio

5,000

60,0000Operating profit〉Greenhouse gas emissions (Scope 1 & 2)

-980.4%FY18

FY19

TAMURA REPORT 2023

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY22

-1,000Integrated report46

■■ Company Data

Summary of Consolidated Financial Results for the Past 11 Years
Data current as of March 31 of each period

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Operating Results
Net sales

(Millions of yen)

68,913

81,17686,24884,64279,60785,55887,00879,65573,90688,328

107,993

Operating profit

(Millions of yen)

561

2,409

4,029

4,266

5,117

5,407

4,600

2,289

1,969

1,564

4,829

Profit (loss) attributable to owners of parent(Millions of yen)

(767)

1,797

3,106

1,783

3,727

3,630

6,397

1,024

542

(84)

2,047

Total assets

(Millions of yen)

66,65874,76780,23976,41175,93982,097

86,07388,59391,064

104,055

111,786

Net assets

(Millions of yen)

28,13531,89538,16436,48838,58842,99647,15546,664

48,14350,221

52,918Cash flows from operating activities (Millions of yen)

3,630

2,940

3,132

8,345

8,140

2,652

4,669

5,456

5,049

(4,949)2,180

Cash flows from investing activities (Millions of yen)

(1,715)(3,475)(1,888)(2,199)(777)(4,822)(4,097)(4,973)(3,052)(4,622)(2,642)

Cash flows from financing activities (Millions of yen)

(1,959)1,335(1,839)(2,674)(3,966)(2,575)

1,096

(141)

(767)

4,536

591

Free cash flow (Millions of yen)

1,915

(535)

1,244

6,146

7,363

(2,170)

572

483

1,997

(9,571)(462)

Capital expenditure (Millions of yen)

2,522

3,707

3,004

2,389

1,658

4,993

6,119

4,522

4,180

5,902

3,357

Depreciation (Millions of yen)

2,066

2,183

2,352

2,659

2,259

2,001

2,219

3,266

3,491

3,361

3,915

R&D expenses (Millions of yen)

1,162

1,096

1,233

1,240

1,209

1,268

1,067

1,035

874

951

757

Book-value per share (BPS) (yen)

341.91386.77463.03442.05468.04519.59570.00565.34583.09607.89644.49Earnings per share (EPS)(figures in parentheses indicate a loss) (yen)(9.35)

21.92

37.88

21.75

45.44

44.27

78.00

12.48

6.61

(1.02)

25.01

Dividend per Share

(yen)

3

6

7

7

9

9

10

10

8

10

10

Operating profit to net sales ratio 

(%)

0.8

3.0

4.7

5.0

6.4

6.3

5.3

2.9

2.7

1.8

4.5

Shareholder’s equity ratio 

(%)

42.1

42.4

47.3

47.5

50.6

51.9

54.3

52.4

52.6

48.0

47.1

Return on equity (ROE) 

(%)

(2.8)

6.0

8.9

4.8

9.8

9.0

14.3

2.2

1.2

―

4.0

Payout ratio 

(%)

―

27.4

18.5

32.2

19.8

20.3

12.8

80.1

121.1

―

40.0

(persons)

6,733

6,131

5,874

5,634

5,248

5,410

5,021

4,753

4,447

4,405

4,576

Per-Share Indicators

Financial Indicators

Number of Employees
Number of employees (consolidated) Notes 1. “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28, February 16, 2018) and others standards have been applied from the
beginning of FY2018. The management indices and other indicators for FY2014 through FY2017 are those after retroactive application of such accounting standards and others.
2. The “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) and others were applied from FY2021, and to management indices, etc.
provided in and after FY2021 are those after the application of such accounting standards.
3. Free cash flow = cash flow from operating activities + cash flow from investing activities

47

TAMURA REPORT 2023

Integrated report48

■■ Company Data

Consolidated Financial Statements(Millions of yen)

Consolidated Balance Sheet

Previous consolidated fiscal year

Current consolidated fiscal year

Previous consolidated fiscal year

Current consolidated fiscal year

(as of March 31, 2022)(as of March 31, 2023)(as of March 31, 2022)(as of March 31, 2023)

AssetsLiabilities

Current assets

Current liabilities

Cash and deposits

13,707

14,441

Notes and accounts payable - trade

10,64010,479Notes receivable - trade

1,112

1,412

Electronically recorded obligations - operating

2,631

3,475

Accounts receivable - trade

20,81625,149

Short-term borrowings

12,040

16,54616

19

Current portion of long-term borrowings

803

730

581

706

Lease liabilities

814

852

8,912

9,615

Income taxes payable

440

703

Contract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process

2,475

2,711

Contract liabilities

Raw materials and supplies

10,72913,364

Provision for bonuses

Others

3,419

3,144

Provision for bonuses for directors (and other officers)

Allowance for doubtful accounts
Total current assets

(24)

(26)

61,74670,537

Non-current assets

76

149

1,020

1,282

30

59

Others

3,364

3,241

Total current liabilities

31,862

37,52013,815

13,532

Non-current liabilities

Property, plant and equipment

Long-term borrowings
23,54924,552

Lease liabilities

3,711

3,650

Accumulated depreciation(11,392)(12,376)

Deferred tax liabilities

1,536

1,192

Buildings and structures, net

12,157

12,176Retirement benefits liability

2,517

2,513

Machinery, equipment and vehicles

18,03919,865

Provision for share awards―

8(13,738)(14,655)

Provision for share awards for directors (and other officers)

―

4

4,301

5,210

OthersTools, furniture and fixtures

9,552

9,894

Total non-current liabilities

Accumulated depreciation(8,130)(8,370)Tools, furniture and fixtures, net

1,422

1,523

5,313

5,354

Buildings and structures

Accumulated depreciation
Machinery, equipment and vehicles, net

Land
Leased assets

6,506

6,868

Accumulated depreciation(1,774)(2,251)

Leased assets, net

4,732

4,617

Construction in progress

2,471

486

Total property, plant and equipment

30,39929,369Goodwill

253

229

Leased assets

342

236

Others

720

762

1,316

1,228

Investment securities

5,054

5,577

Retirement benefits assets

4,439

3,816

Deferred tax assets

381

598

Others808

743

Allowance for doubtful accounts

(90)

(83)

Total investments and other assets

10,592

10,65142,30941,249104,055

111,786

Intangible assets

Total intangible assets
Investments and other assets

Total non-current assets
Total assets

49(Millions of yen)

TAMURA REPORT 2023

Total liabilities

389

444

21,97021,34853,83358,868Previous consolidated fiscal year

Current consolidated fiscal year

(as of March 31, 2022)(as of March 31, 2023)

Net Assets
Shareholders’ equity
Share capital

11,82911,829

Capital surplus

17,01917,028Retained earnings

18,102

19,326

Treasury shares

(235)

(575)

Total shareholders’ equity

46,71647,609195

511

Foreign currency translation adjustment

2,097

4,105

Remeasurements of defined benefit plans

927

407

3,220

5,024

181

176

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets

Total liabilities and net assets

102

108

50,221

52,918104,055

111,786

Integrated report50

■■ Company Data

Consolidated Financial Statements(Millions of yen)

Consolidated Statements of Income
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains
Subsidy income
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
OthersTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on reversal of foreign currency translation adjustment
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss on sale of investment securities
Loss on liquidation of subsidiaries and associates
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Previous consolidated fiscal year

Current consolidated fiscal year

April 1, 2021 to( March31, 2022 )April 1, 2022 to( March31, 2023 )

88,32865,99622,332
20,767
1,564

107,993
80,56527,42822,599
4,829

68
73
221
21
105
413
904

72
80
341
―
83
235
813

394
―
73
468
2,001

725
512
75
1,313
4,329

9
2
―
11

195
1
193
389

89
503
100
33
0
75
801
1,210
916
364
1,280
(69)
14
(84)

97
1,333
―
485
―
5
1,921
2,798
1,244
(504)
740
2,057
10
2,047
(Millions of yen)

Consolidated Statements of Comprehensive Income
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

51

TAMURA REPORT 2023

Previous consolidated fiscal year
April 1, 2021 to( March31, 2022 )Current consolidated fiscal year
April 1, 2022 to( March31, 2023 )

(69)

2,057

183
1
2,440
66
254
2,947
2,877

316
―
1,908
(520)
113
1,818
3,875

2,861
15

3,850
24

(Millions of yen)

Consolidated Statements of Cash Flows
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and other officers)
Increase (decrease) in provision for share awards
Increase (decrease) in provision for share awards for directors (and other officers)
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sale and retirement of non-current assets
Loss on valuation of shares of subsidiaries and associates
Loss on liquidation of subsidiaries and associates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
OthersSubtotalInterest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from liquidation of subsidiaries and associates
Loan advances
Proceeds from collection of loans receivable
Other, net
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Purchase of treasury shares
Proceeds from sale of treasury shares
Increase (decrease) in money trust of acquisition of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change in scope of consolidation
OthersCash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Previous consolidated fiscal year

Current consolidated fiscal year

April 1, 2021 to( March31, 2022 )April 1, 2022 to( March31, 2023 )

1,210
3,361
503
78
(17)
―
―
(36)
(155)
(142)
394
(163)
(221)
(2)
100
80
33
9
(2,544)(6,665)913(508)(3,772)232(379)(1,029)(4,949)

2,798
3,915
1,333
261
28
8
4
(9)
(13)
(152)
725
198
(341)
(1)
―
(97)
485
5
(3,783)(2,446)
400
204
3,524
271
(694)
(920)
2,180

(367)
―
(3,294)
75
(7)
(93)
(492)
72
―
(180)
11
(346)
(4,622)―50(2,460)
241
(8)
(180)
(267)
3
4
(0)
0
(25)
(2,642)

5,411
4,802
(4,029)
(823)
(0)
0
―
(817)
(6)
―
―
4,536
735
(4,300)17,187
12,887

3,409
165
(827)
(1,006)
(0)
0
(347)
(817)
(7)
(3)
27
591
602
732
12,887
13,620Integrated report52

■■ Company Data

Corporate Information(as of March 31, 2023)

Company Profile

Stock Information

Company Name

Tamura Corporation

FoundedMay 11, 1924

Incorporated

November 21, 1939

Capital11,829 million yen

Number of
Employees

Consolidated: 4,576
Non-consolidated: 889

Websitehttps://www.tamura-ss.co.jp/

Head Office

Nerima-ku, Tokyo

JAPAN〉Basic stock data
Securities code
Listed stock exchange
Shares authorized
Shares issued andoutstanding
Number of shareholders■ Wakayanagi Tamura Corporation■■■ Nagoya Sales Office■■
Aizu Tamura Corporation■■ Head Office / Tokyo Office■ Sakado Factory■ Iruma Factory■■ Sayama Factory■ Kodama Factory■ Koha Co., Ltd.

■■■■ Osaka Sales Office■ Head Office/Regional Headquarters■ Electronic Components■ Electronic Chemicals■ FA Systems

Shareholder name(Not including 603,272 shares of treasury stock)

29,514

Non-Japanese

Other domestic
companies
5,544(6.70%)
Financial
institutions

Securities companies

4,097(4.95%)

2,461(2.97%)

Individuals,
other

Total

82,771

43,466(52.51%)

Number of shares held Shareholding
ratio(thousand shares)

Master Trust Bank of Japan, Ltd.
(Trust account)

10,83613.18%

Tamura Cooperating Company
Stockholding Association

3,560

4.33%

Custody Bank of Japan, Ltd.
(Trust account)

3,400

4.13%

Sumitomo Mitsui Banking Corporation

3,200

3.89%

Mizuho Bank, Ltd.

1,999

2.43%

Resona Bank, Limited

1,911

2.32%

Sumitomo Mitsui Trust Bank, Limited

1,412

1.71%

Tamura Corporation Employee
Stockholding Association

1,178

1.43%

Naoki Tamura

1,146

1.39%

Sumitomo Life Insurance Company

1,018

1.23%

Note: The 603,272 treasury shares are not considered in the calculation of shareholding ratios.

27,203(32.87%)
Note: 603,272 treasury shares (0.72%) are included in individuals and others.

■ Information Equipment

EUROPE■ Tamura Elsold GmbH■■ Tamura Europe Limited■■ Tamura Corporation of China Limited■ Shanghai Xiangle Tamura Electro
Chemical Industry Co., Ltd.
■ Tamura FA System (Suzhou) Co., Ltd.
■ Tamura Electronics (Suzhou) Co., Ltd.

■■ Tamura Kaken Corp., U.S.A.

■ Tamura Electronic Material (Tianjin) Co., Ltd.
■ Tamura Magnetic Engineering S.R.L.

Holdings information

6768
Tokyo Stock Exchange
252,000,000
82,168,201〉Share distribution (Unit: thousand shares)

TAMURA CORPORATION

Global Network〉Main shareholders (top 10)■ Hefei Ecriee-Tamura Electric Co., Ltd.

■ Tamura Chemical Korea Co., Ltd.
■■ Tamura Corporation of Korea■ Op-Seed Co., (BD) Ltd.

■ Tamura Corporation of America■ Tamura Power Technologies de Mexico, S.A de C.V.

■■ Taiwan Tamura Technology Co., Ltd.
■ Earth Tamura Electronic (Myanmar) Co., Ltd.
■ Tamura Elcomponics Technologies Pvt. Ltd.

■■ Tamura Corporation
Vietnam Co., Ltd.

■■■■ Tamura Corporation (Thailand) Co., Ltd.

■ Tamura Electronics (M) Sdn. Bhd.
■ Tamura Kaken (M) Sdn. Bhd.

■■■ Tamura Corporation
Singapore Pte. Ltd.

■■■ Tamura Corporation of Hong Kong Limited■ Tamura Kaken (Dongguan) Ltd.
■ Tamura Electronics (S.Z.) Co., Ltd.
■ Tamura Electronics (Huizhou) Co., Ltd.
■Tamura Automotive Electronics (Foshan) Co., Ltd.

AMERICAS■ Telepart-Tamura Industria eComercio Ltda.
■ Indusul Industria deTransformadores Ltda.

ASIA■ Indusul Industria de Transformadores Ltda.

53

TAMURA REPORT 2023

Integrated report54