TDK CSR REPORT 2018

Top Commitment

Monozukuri (manufacturing excellence) andKotozukuri (integrated solutions)
Our new Medium-Term Plan, which has kicked off infiscal 2018, has the central theme of “Value Creation
2020.” It cites three pillars that we will strengthen
over the medium to long term: “Commercial Value”,“Asset Value”, and “Social Value.” Our idea is tocreate more than simply financial value.
Social Value reflects our determination to further
strengthen the link between our business and social sustainability. To this end, we will advance not
only our tradition of Monozukuri but also Kotozukuri.
Kotozukuri involves combining TDK’s various technologies and products to supply solutions that meetthe needs of customers and contribute to society.
As a result, we will be able to connect an evenwider customer base with quality TDK components.

Through the fusion of Kotozukuri and Monozukuri, we
hope to create new values.
In order to realize this vision, we will actively engage
in dialogue beyond the boundaries of our industry
connections and employ a broad perspective to
examine the landscape of possibility. Doing so will
enable us to meet the needs of customers as they
emerge, in real time. Throughout this work, we must
constantly be thinking about how our technologies
can provide practical value. Our starting place mustfirst be to clearly identify the issues to be solved,
the needs, and the goals of the customer, and fromthere to supply useful technologies accordingly.

Aligning corporate growth and social contribution

TDK’s cutting-edge technologies:
Balancing corporate growth and social
sustainability
Toward a society with “no one left behind”In 2017, major changes took place in the landscapeof electronic components. The accelerated advanceof electric vehicles in the world had a huge impact on
the demand for components and devices. The governments of the United Kingdom and France, for example,
announced plans to end the sale of gasoline- anddiesel-powered cars by 2040. The inter-related trends
toward EVs and autonomous driving have gained significant momentum.
I recently had my first experience of an autonomous
driving car at a home appliance show, and I cameaway with the surety that these vehicles will soon be acommon sight on the roads. With that being the case, I
am confident that communication devices which rely on

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artificial intelligence, such as smart speakers, are going
to expand as well. Devices that can be operated by voice
input and are designed to be accessible for non-technical users will also see rapid growth in the coming years.
These trends illustrate a key aspect of our collective
future: we have entered an age in which cutting-edge
technologies can empower marginalized members ofsociety, such as the elderly and disabled. This direction
is consistent with the “no one left behind” pledge in theUnited Nations Sustainable Development Goals.
As a manufacturer, TDK aims to contribute directly to therealization of this vision for society. We supply values thatsatisfy the needs of customers and foster solutions to
global social issues.

The most important factor in the achievement of our
new Medium-Term Plan is human resources. The
development of human resources, we can say, is thegreatest issue facing TDK. In particular, from now
on we must put a lot of effort into the developmentof global human resources. We will achieve thisgoal by creating systems that identify the particularstrengths and skills possessed by each individual,
and matching those individuals with the appropriate
career paths. To incorporate the dynamism of ouracquired companies and utilize the strengths of theiremployees, we must redouble our efforts to expand
diversity.
We will also continue to put efforts into material
procurement that takes the environment and humanrights into consideration. In particular, at a time
when demand for batteries and motors is expected
to grow as a result of the diffusion of electric vehicles
and other factors, I think it is an important duty for

us to procure rare metals, which are essential forthe manufacture of electronic components, withdue consideration for the environment and humanrights. At the same time, we will strive to reduce theenvironmental load throughout the entire life cycleof products, including the development of magnets
that do not use rare metals and the reduced size
and increased efficiency of products.
I believe that corporate growth and social sustainability are like two sides of the same coin. Businessgrowth becomes truly sustainable when it contributes to society, and a healthy society in turn sustains
consistent growth in the business sector. The pursuitof both of these factors together, I am sure, will raise
our value as a company and generate increased
Social Value.

Shigenao Ishiguro

President and CEO, TDK Corporation4