Tamron Co., Ltd.

Integrated Report2023

for the Year Ended December 2022

Contents
02

Tamronʼs Efforts to Achieve Sustainability

03

Corporate Philosophy

31

Strategies by Segment

31 Photographic Products

Tamronʼs Efforts toAchieve Sustainability

33 Surveillance & FA Lenses
35 Mobility & Healthcare Products, Others

Introduction
05

Tamron's Value Creation Story

07

Message from the President & CEO

11

Tamron Products Promoting Sustainability

Financial Strategy

42

Human Rights Initiatives

The Value Creation Process

Corporate Gover nanceCorporate Governancesociety. We carefully listen to the voices of our customers and society as we

45Management Structure

continually hone our optical technologies. Tamron’s social mission is to bring
optics and offering products that can solve social issues.

Data

Business Development

17

Risk Management and Management Strategy

19

Vision23 Mid-Term Management Plan and

47 Financial Highlights

Progress

49 Non-Financial Highlights

CSR Implementation

23

Environmental Strategy

27

Human Resource Development

29

Technology Strategy

The feelings encapsulated in a single photo, the safety needed in a changing

43

15

21

through its mastery of light, contributing to the realization of a fulfilling society.”

emotion and reassurance to all stakeholders by expanding the possibilities ofManagement Strategy

Individual Strategies

Tamron's sustainability efforts are achieving a sustainable environment, society
and management under its corporate mission to “create emotion and reassurance(Sustainable Society)

13

39

47

Financial and Non-Financial Highlights

50

External Recognition

51

Company Profile / Shareholder Information

52

Group Network

Focus on the Future. To anticipate the future and shape a sustainable global
environment and society, Tamron will continue to pursue the possibilities thatlight holds.

Editorial Policy

Tamron publishes an integrated report as an important toolfor communicating with shareholders, investors and otherstakeholders. The report contains information on management
strategies, finances, human resources and the environment
strategies as a way to share details of Tamron's sustainability
and growth potential. In compiling this report, we havereferenced the Guidance for Collaborative Value Creationfrom the Ministry of Economy, Trade and Industry, and theInternational Integrated Reporting Framework from theInternational Financial Reporting Standards (IFRS).

This report covers the period from January 1, 2022 to December 31, 2022
(including some information that falls outside the above period)
The report concerns the 10 companies of the Tamron Group(including Tamron Co., Ltd.)* Please refrain from reproducing the images or other information
contained in this report without permission.

01

Tamron Integrated Report 2023

Tamron's Information Framework
Financial Information

Non-financial Information

Publication of Integrated Report 2023

Integrated Report (PDF)

Integrated Report 2023 is edited and prepared by compiling financial and non-financial
Securities Report (PDF)

Financial Statements (PDF)

IR Information (Web)

Corporate Governance Report(PDF)

information concerning Tamron’s initiatives with the cooperation of each division. I haveverified the validity of this process and the information described herein. I hope that thisESG Databook (PDF)
CSR Information (Web)Reference website:

Reference website:

https://www.tamron.com/
global/ir/

https://www.tamron.com/
global/sustainability/

report will give stakeholders a deeper understanding of the Company’s activities. Thankyou for your continued support.

Shiro Ajisaka
President & CEO
Tamron Co., Ltd.

Tamron Integrated Report 2023

02

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Corporate Philosophy

Corporate Mission

Tamron's mission that it
seeks to achieve insociety

Corporate
MissionTamron's approach toachieving its mission

Corporate Vision

Tamron creates emotion and reassurance throughits mastery of light, contributing to the realizationof a fulfilling society.
Corporate Vision

Carving out the future with light
We pursue optical technologies, aiming for a fulfilling society that offers joy, emotion andreassurance. We expand the possibilities of light by addressing many of society's issues for the future
providing value around the world.

The approach that employees
should emphasize to achieve
the mission

Our Approach

Standards of Business Conduct

Modes of action that thecompany and its employees
should practice

Our Approach
Sincerity

We genuinely approach all situations fairly and equitably through careful examination of the actual
location, subject and circumstances.

Challenge

We are open-minded, unconstrained by conventional wisdom, and embrace infinite possibilities.

Creativity

We create value, addressing many of society's issues through teamwork.

Brand slogan / Statement

Long-Term Vision

Our vision

A company that is respected and truly needed by society.
Tamron is focused on the future.
Good Company

Improving the Tamron brandA company with work
fulfillment

We are committed as an optical specialist to create new value and direction in optics
with our long-accumulated optical technologies and address many social issues in the future.
Tamron delivers emotion and reassurance around the world toward a more fulfilling society.
We will never stop rising to new challenges.

03

Tamron Integrated Report 2023

Tamron Integrated Report 2023

04

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Tamron's Value Creation Story

Tamron's history of growing with society and continuing to create emotion and reassurance
Company History
1950
Taisei Optical
Equipment
Manufacturing isfoundedBecoming a global company providing products around the world

1952

Taisei Optical
Equipment
Manufacturing Inc.
is established1958

The Tamron brand isregistered as atrademark1969

The Hirosaki
Factory isconstructed

1970

Company name ischanged to TamronCo., Ltd.

* Tamron now has
three sites in
Aomori (Hirosaki,
Namioka andOwani)

1979

Sales subsidiary isestablished in the
United States

1982

1984

Sales subsidiary isestablished in West
Germany (at thattime)

Registered with theJapan Securities
Dealers Associationfor over-the-countertrading

1995

Bronica Co., Ltd.
is acquired

1997

2005

Production subsidiaryin China isestablished

Sales subsidiary in
China is established* Expanding to sevengroup companies throughthe subsequentestablishment of overseas
sales subsidiaries

2006

Listed on the 1st
section of the Tokyo
Stock Exchange

Net sales
2001

2003

over
billion yen

overbillion yen

2002

2004

over
billion yen

overbillion yen

30
40

2012

Production subsidiaryin Vietnam isestablished

2022

Moved to the Prime
Market of Tokyo
Stock Exchange

2022
Tamron achieves
record highoperating income of2014
Net sales top

50

70

11

billion yen

billion yen

60

and profit of

8.4

billion yen

Members of the Urawa Plant at the time

Hirosaki Factory

Factory in Foshan, China

1984
Net sales top

20

billion yen

1981
Net sales top

10

billion yen

1950

1960

Product History
1950

Manufacture ofcameras andbinocular lenses isstarted

1970

1980

1990

Widespread
adoption ofdigital cameras

Expansion
period ofinterchangeable
lenses for DSLR cameras

Compact digital
camera lenses
drive sales

Sales growth due tocreative photographic
lenses

2000

2010

2020

2022

Developing a wide range of products through technologies to develop high precision in lenses

1957

The T mountinterchangeable lens
mount for SLR
cameras is developed

1966

Production of mastertest plates, ultraprecision lenses andprisms is started

1966

The Tamron AdaptA-Matic range oflenses is developed

1981

6x zoom video
camera lens isdeveloped

1986

Varifocal lenses for
CCTVs are developed* Industry-first

1992

The AF28-200mm(71D) all-in-one zoom
lenses for SLR
cameras is released

2006

Sale of lenses formobile phones isstarted

2008

Sale of automotive
lenses is started

2016

Sale of compact
camera modules
is started

2017

Sale of drone lenses
is started

2018

Sale of lenses for
medical applicationis started* World-first

Master test plates
Ultra-precision lenses that serve as thestandard for all optical lenses. For morethan half a century, skillful techniques
have been handed down by successivecraftspeople, making Tamron one of the
few optical manufacturers able to craft
master test plates even today.

05

Tamron Integrated Report 2023

Widespread adoption ofvideo cameras begins
VTR-equipped cameras and video
camera lenses developed to coincidewith the widespread uptake ofcompact video cameras enjoy brisk
sales. These products accounted for
50% of sales at the time.

The beginning of all-in-one zoom lenses
The original model for the all-in-one zoom lens was a rounded
piece of graph paper the size of a cigarette packet (The worldʼssmallest and lightest in the world at the time). Starting with thisfirst product, Tamron has made successful advancements withgreater focal distances, more compact and lighter designs andnew mounting mechanisms, establishing Tamronʼs position as
the go-to manufacturer of all-in-one zoom lenses.

Tamron Integrated Report 2023

06

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Message from the President & CEO

We aim to create
emotion andreassurance to shapea fulfilling society.

achieve our targets in various areas, such as reducing CO2
emissions based on Environmental Vision 2050, and raising thepercentage of management positions filled by women as part of
stepped up human resource initiatives.
By helping to shape a sustainable, fulfilling society, Tamron

aims to become a company that is respected and truly neededby society. The furtherance of sustainability expands social andnon-financial value while enhancing corporate value, thus
fulfilling stakeholder expectations. In recognition of this, we willcontinue to step up our efforts.

Progress of the Mid-Term Management Plan

Shiro Ajisaka
President & CEO
Tamron Co., Ltd.

Looking Back on the Fiscal Year under Review
The management environment in 2022 was affected by the
spread of COVID-19 infections from the beginning of the year,
but in part due to most of the world shifting course to a livewith-COVID approach, the effects gradually diminished.
However, the effects of high resource prices, high component
and material costs and semiconductor shortages that continued
from 2021 were prolonged. Combined with other developments
such as the Russian invasion of Ukraine, accelerating inflation
and weakening of the yen, 2022 was a year of dizzying changes
to the management environment, despite a moderate recovery
trend overall.
Under these conditions, Tamron achieved double-digit growthin net sales in every segment, controlled the effects of rising
component and materials costs to the best of its ability, andfocused on lowering its operating expenses and costs to absorb
those impacts as much as possible. Additionally, although R&D
07

Tamron Integrated Report 2023

expenses that support the core of Tamron’s business increased,by continuing with our approach of implementing appropriate
SG&A expense control, we managed increase operating income
by approximately 1.5 times.
In doing so, we achieved record-high operating income for the
first time in 15 periods, with operating income, ordinary income
and profit all surpassing previous highs by a healthy margin.
This also marks the first time Tamron has topped the benchmark
10 billion yen in operating income, making a significant advanceinto 11 billion yen territory.
When I assumed the position of President & CEO, I advocatedthe policy of being “a good company that puts profit first.”
This has steadily taken root within Tamron, and as a result of each
employee understanding it and putting it into practice in various
situations, the policy manifested itself in a grand form in 2022.
To increase social value in addition to economic value, we also

Tamron got off to a new start in 2021 with the announcementof the Vision23 Mid-Term Management Plan. On the profit front
we achieved the target set out in the Mid-Term Management
Plan in the first year, managing to achieve v-shaped recovery
back to the highly profitable pre-pandemic structure at an earlystage. Then in 2022, the second year of the plan, we maintained
the highly profitable structure while working to expand sales inareas of growth and development, namely Surveillance & FA
Lenses and Mobility & Healthcare.
We also set the initial plan of achieving the target for net sales set
in the Mid-Term Management Plan a year ahead of schedule.
As a result, despite the effects of an increasingly weak yen,
we expanded net sales in our mainstay business as well as ingrowth and development areas. Not only were we able toachieve our Mid-Term Management Plan targets in terms of net
sales, operating income and ROE, but we managed to boost
operating income by around 1.6 times the level set out in the
Mid-Term Management Plan and increase operating income
margin to 17.4%.
In terms of progress on a per-segment basis, in our mainstay
Photographic Products Business we achieved our mid-termtargets for net sale and operating income margin in the firstyear, and made further improvements in the second year.
Operating income margin rose by almost 10% over these twoyears, enabling us to firmly establish the segment as a highly
profitable business. In terms of product launches, our lineup ofown-brand products for mirrorless cameras has grown about
2.5-fold compared with 2020, and in addition to lenses for SonyE-mount, we started to offer lenses compatible with Fujifilm’s
X-mount and Nikon’s Z-mount.

In the Surveillance & FA Lenses segment, despite falling shortof planned net sales figures, revenue from mainstay surveillanceand FA lenses recorded double-digit growth for two straightperiods, increasing to more than 10 billion yen. We managed toraise operating income margin into the 10% range, our midterm target, and achieved growth in net sales due to profit
growth. We also renewed the FA lens product lineup andacquired new business for OEM products.
In the Mobility & Healthcare and Others segments, net sales ofmainstay automotive lenses achieved double-digit growth forthe second straight year, growing to more than 5 billion yen.
We also launched the Health Care business as a new area of
operations and created businesses for the next fiscal period
while achieving the mid-term target of operating income margin
in the 10% range in the first year and further improving it in thesecond year.
As a result, the development of a business portfolio with anoperating income margin of 10% across all segments, which we
had targeted for 2023, was successfully achieved a year earlier
than planned in 2022.
In addition to growth in net sales and profit, we see thedevelopment of our desired operating portfolio through thedevelopment of each business to be a significant achievement.
In 2023, the final year of the plan, we will not rest on theseaccomplishments; we will aim to reach net sales in the 70 billion
yen range for the first time since 2015, again far outpacing thetargets set in the Mid-Term Management Plan. We will also
aspire to greater heights, planning to generate operating
income of 11.5 billion yen, an increase in all profit levels.

Progress of the New Mid-Term Management Plan
Net Sales

61.0 70.0

Operating Income

7.0

11.5
（2023 plan ）billion yen

billion yen

billion yen（Vision23）（2023 plan ）（Vision23）

billion yen

Operating Income Margin

11.5

%

（Vision23）

16.4

ROE
Over

%

（2023 plan ）

9.1

13.2

（Vision23）（2023 plan ）%%Tamron Integrated Report 2023

08

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Message from the President & CEO

Sustainability Initiatives
Based on its corporate mission of “creating emotion andreassurance through its mastery of light, contributing to therealization of a fulfilling society,” Tamron aims to realize thesustainable society described in the Sustainable Development
Goals (SDGs) together with customers, suppliers, shareholders,local communities, employees and all other stakeholders.
To help achieve these goals through our core business, wehave continued to support the Ten Principles of the United
Nations Global Compact. Tamron recognizes these principles
as standards to be put into practice by global companies.
Accordingly, we have reflected them in the Tamron Standardsof Business Conduct and have thoroughly integrated elements
into our in-house training, including at overseas sites. We havealso identified issues that are of high importance to society
and Tamron (Key CSR issues), and work to solve them.

■ E (Environmental)
In terms of the environment, we recognize reducing CO2
emissions as a key CSR issue in light of the importance ofclimate change due to global warming in recent years. To realize
a fulfilling society in which all people can live lively andenergetic lives, the shaping of decarbonized society is essential.
As part of its action on this issue, in Environmental Vision 2050
Tamron set the targets of reducing CO2 emissions by 30%
compared with 2015 levels by 2030 and to zero by 2050, andis stepping up initiatives to meet these targets.
On the way to meeting our mid-term targets, since 2021 wehave worked to reduce CO2 emissions by 3% each year. In
2022 we achieved a 15% emissions reduction, far surpassing
the target reduction of 6% compared with 2015 levels.
This marks the second straight year we have achieved our
reduction targets. In addition to reducing electricity use
through energy saving efforts with the installation of highefficiency air conditioning equipment and improved productivity
in regular operations, from 2022 we began purchasing renewableenergy credits. Additionally, Tamron has indicated support for
the TCFD recommendations and made TCFD-compliant
disclosures. We are working to further broaden these disclosuresin the future.
Through the efficient use and re-use of plastics, the promotionof environmentally friendly design and other efforts, Tamron is
also working to reduce industrial waste and improve recycling
rates, and we are looking to increase our contributions to a
resource recycling-oriented society. Meanwhile, on important
issues related to the global environment including themanagement of harmful chemical substances and themitigation of water risks, we will continuously work to reduce
our impact in cooperation with stakeholders.

09

Tamron Integrated Report 2023

■ S (Social)
With society undergoing significant changes, innovation isessential in striking a balance between Tamron’s sustainablegrowth and the development of a sustainable society. Since its
founding, Tamron has pursued advanced optical technologies
and combined innovation with technological prowess tocontinually develop and supply high quality products that are
trusted by customers. And today, to shape a sustainable
society and help develop a fulfilling society in a wider range offields through our accumulated technologies, we are driving ashift in technical strategy from the conventional “taking
images” to “measuring” in each field. To achieve this goal, our
Optical Development Center and R&D Technology Center
pursue the development of core optical, mechanical andproduction technologies, as well as core elemental technologies
including R&D and optical development technologies, lensprocessing technologies, coating and filter technologies,
actuator technologies, resin forming and molding technologies,
thus contributing to the product development underway inthe technical departments of each division. By implementing
these initiatives, we will transform the role of our businessfrom the conventional manufacturing to the provision of value
through proprietary technology. In the future, we aim toprogressively evolve optical technologies that capture images
into optical technologies that take measurements, expanding
our business domains into nursing and healthcare, robotics,
logistics, agriculture, infrastructure and free-space opticalcommunication, and further stepping up activities to create
new business.

What Tamron Will Continue toPursue as Its Vision Is Helping
Shape a Fulfilling Society
through Optical Products.
Additionally, to further reinforce sustainability promotionfunctions, in addition to the existing CSR Committee, we have
newly established a Risk Management Committee andInformation Management Committee as part of efforts toreorganized the committee structure.
In terms of Tamron’s organizational structure, we have been
implementing a series of streamlining measures based on the
declared goal of “improving corporate structure” as an agenda
for transformation instituted when I was appointed CEO. In 2016,
when I became CEO, there were 27 division-level organizations.
To clarify areas of responsibility and produce synergies, wehave pursued consolidation to get that number down to 11 in
2023, representing a reduction of around 60%. From 2023,
the agenda for transformation will change to “strengthening
corporate structure,” an approach designed to strengthen ourdevelopment into an organization that can respond to changes
in the internal and external environment with speed andflexibility, including encouraging the delegation of authority.
We will continue efforts to build a corporate governancesystem that contributes to sustainable growth along withimproved corporate value in the mid- to long-term.

■ G (Governance)
In light of dialogue with shareholders and investors, and the
purpose of the Corporate Governance Code, Tamron has
continued to make improvements with the aim of enhancing
the effectiveness of its governance system. In particular, in
2021 we held in-depth discussions in response to the revised
Corporate Governance Code, and in 2022 we tried to makemany more improvements, which led to Tamron being listed in
the new Prime Market TSE section and implementing all
principles of the revised Corporate Governance Code.
To address the composition of the Board of Directors, wehave appointed members with experience in corporate
management at other companies as outside directors, raising
the percentage of independent outside directors to 36.4% of
the Board in 2022, and 40% in 2023, reflecting efforts tomake structural improvements ensuring a diverse andeffective Board of Directors. At the same time, we have better
clarified the management responsibilities of directors andstrengthened systems to further raise their awareness of improved
corporate value, such as by shortening the term of office fordirectors to one year, and adding total shareholder return (TSR) as
one of the metrics used to determine director compensation.

To Our Valued Stakeholders
Over the past few years, the COVID-19 pandemic has raged
and brought about significant changes throughout the world.
The global outlook has also become increasingly uncertain,
and the management environment has been subject to wildswings. Operating within this social climate, Tamron willcontinue to pursue its vision of helping to shape a fulfillingsociety through optical products. Tamron’s social mission is tobring excitement and reassurance to all stakeholders throughthe mastery of optical technologies and products that solve
social issues. In other words, our mission is to work with our
stakeholders to help solve social issues through fair and honest
business activities. I believe that pursuing the sustainability ofsociety and our own sustainable growth by achieving thismission represents Tamron’s sustainability.

As a company that operates globally, we will cooperate with
our stakeholders to address a range of issues, not only
within our own company but also in our supply chain, and to
make steady progress toward our long-term vision of becoming
a company that is respected and truly needed by society.
We greatly appreciate your continued support and cooperation.

Shiro Ajisaka
President & CEO
Tamron Co., Ltd.

Tamron Integrated Report 2023

10

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Tamron Products Promoting Sustainability (Sustainable Society)Teleconferencing
lensesNetwork Surveillance
Camera Lenses
Traffic surveillancecamera lenses
Drone lenses

Medical Devices

Tamron creates emotion and reassurance
Automotive lenses

through a range of optical products, facilitating
the formation of a sustainable society.

FA and Machine Vision Lenses

Interchangeable lenses formirrorless cameras
Lenses for DSLR cameras
Lenses for compact digital cameras
Lenses for video cameras
LWIR Camera Module

11

Tamron Integrated Report 2023

Tamron Integrated Report 2023

12

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

The Value Creation Process

Tamron utilizes its optical technologies to provide products that create emotion and reassurance.
By creating environmental, social and economic value through these products and business activities,
Tamron will achieve sustainability in society and its own sustainable growth.

Achievingsustainability

Our long-term vision

A company that isrespected and truly neededby society

Business Activities

Tamron’s sustainablegrowthFulfilling society

Sustainable society

・Good Company
・Improving the Tamron brand

Recognizing risks and opportunities,
identifying materiality

Our vision for society

Sustainable global
environment

・A company with work fulfillment

Materiality
P18

Outcome

Changing external
environment
・Changing business models
・Geopolitical risks
・Response to climatechange・Resurgence of ESG
investment
・Respect for human rights
・Stable procurement andsupply・Workstyle and lifestylechanges・Information security

Photographic
Products

P31-32High-precision opticaltechnologies

Areas of Focus
P15-16High
magnification
Smaller size
Reducedweight

P31-38
Mobility &Healthcare
Products, Others

Technology
Strategy

Surveillance& FA Lenses

P33-34

P35-38

P29-30Creation of Social Value

Creation of Economic Value(2023)(2023)(2023)

Sustainable
earth

Strengths
・Optical design
・Mechanicaldesign・Coatings
・Production
technologies
・Test plates

Creation of Environmental Value

CO2
Emissions

9%Reduction(compared with 2015 levels)

Promotion ofenvironmental strategy
Negative outcomes

CO2 emissions,waste generation

Mid-Term Management Plan "Vision23"(2021–2023)

A society inwhich people
can feel emotion

Net Salesbillion yen

A society inwhich people canlive in security

Operating
Incomebillion yen

Operating
Income Margin

16.4%

ROE

13.2%

A healthy society

A society withwork fulfillment

70.0
11.5

P19-20Invested Capital (2022)

Output

Key Risks /Key Opportunities

Financial Capital

Manufacturing Capital

Human Capital

Net Assets

60.6 billion yen

Capital Investment
3.2 billion yen

Employees

P17Intellectual CapitalSocial Capital

Natural Capital

R&D Expenses

Countries and Regions with a
Tamron Sales Presence Approx.

5.4 billion yen

70 countries and regions

4,448

Interchangeable
Lenses for Cameras

Surveillance & FA
LensesAutomotive
LensesMedical
Devices

Drone
LensesElectric Energy Usage

78.238 million kWh

Foundations Supporting Value Creation (Key CSR Issues)

Strengthening thefoundations supporting
value creation

Human Resource
Development

Environmental
Strategy

Corporate GovernanceP27-28

P23-26

P43-44・Interchangeable
・Network Surveillance
Lenses for Mirrorless
Camera Lenses
Cameras・FA and Machine
Vison Lenses
・Interchangeable Lenses
for Digital SLR
・Camera Module etc.
CamerasCorporate Mission

・Sensing Camera
Lenses・Side and Rear View
Camera Lenses
・Headlight Lenses

・Endoscope Lenses

・Consumer Drone Lenses
Enthusiast Use・Industrial Dorne Lenses
Inspection, Agriculture,
etc.

P3-4

13

Tamron Integrated Report 2023

Tamron Integrated Report 2023

14

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Business Development

Using the profits earned from the mature photographic products market and the stable growthmarket for surveillance and factory automation as capital, Tamron aims to allocate management
resources to new and high-growth markets, namely automotive, for medical applications to scale up
its business.

Composition of Net Sales and Operating Income
Net Sales by BusinessBusiness Portfolio

Mobility & Healthcare Products, Others

Lenses for compact digital
cameras and video cameras

High

Automotive

MedicalDronesMobility & Healthcare
Products, Others

With advancements in autonomous driving,in addition to conventional applications in
the visual spectrum, a growing proportion of
automotive cameras are used for sensing,increasing the importance of high-performancelenses. Through our sophisticated precision
optics technologies, we will contribute to
the development of a safe and secure drivingsociety.

New Market

10%

MedicalAutomotive
Surveillance,
factory
automation,etc.

P37-382022
Net Sales ofHigh-growthMarketOwnBrand

63.4

Automotive

Medicalbillion yen

Photographic
Products

18%

Surveillance & FA Lenses

Leveraging Tamron's strengths invery small diameter lenses and thinfilm technologies, we will contributeto progress in minimally-invasive
medical procedures.

OEM

Surveillance & FA
Lenses

P36

Market Growth Rate

72%

Surveillance, Factory Automation, etc.

Operating Income by Business
Mobility & Healthcare
Products, Others

8%
2022
Operating
Income of

Tamron continually develops surveillancecamera lenses which cater to market needs.
Together with machine vision camera lenses
used in industrial applications, we arehelping to develop a safe and secure society.

Stable Growth Market
Surveillance and FA-related Fields
P33–34

11.0

billion yen

10%
Photographic
Products

82%
Domestic：

Other
regions

Japan

18%

2022
Net Sales of
Asia

49%

63.4

billion yen

NorthAmerica

14%

EuropeOverseas：

82%

15

Tamron Integrated Report 2023

17%

18%

Large

Photographic
Products

Lenses for Compact Digital Cameras and Video Cameras

Net Sales by Region

2%

Sales Volume

Small

Surveillance& FA Lenses

Using techniques and expertise cultivated overmany years combined with state-of-the-art
technologies, Tamron will develop and supply
optical lens units designed for image sensors
with increasingly high resolutions, contributing
to the development of film culture.

Mature Market

Own-Brand / OEM

Photographic Products Field

Mature Market

In addition to interchangeable lenses for DSLR cameras, inrecent years Tamron has developed compact, lightweight
lenses for mirrorless cameras as well. Our lenses, whichfeature excellent rendering performance combined withgood operability in a lightweight, compact form, create
moving experiences through video and contribute to thedevelopment of a fulfilling society.

P31–32

Lenses for Compact Digital
Cameras and Video Cameras
P38

Low

Tamron Integrated Report 2023

16

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Risk Management and Management Strategy

Risk Management

Materiality

The business environment surrounding Tamron is changing witheach day. Tamron implements risk management and controls
risks based on both aspects, namely the risks that need to beprepared for to ensure Tamron's sustained growth, as well as
growth opportunities themselves. Risks and opportunities
recognized as key management issues are implemented throughthe “Basic Policies and General Principles” of the mid-term

management policy and through the management plans ofeach division. Each division then builds a management system
to perform administration of the policies. In terms of CSR,
important issues are recognized as priority CSR issues. For these,
we set management targets and monitor our progress on theissues periodically through quarterly CSR Committee meetings.

Key Risks and Opportunities
Risk Factors

Key Risks / Key Opportunities

Response Methods• Contraction of the digital camera market• Reliance on photographic products business andspecific customers• Growth in the mirrorless camera market• Growth in the industrial camera market∙ Sales strategy specializing in interchangeable lenses formirrorless cameras∙ Expanding sales in the growing market forindustrial lenses∙ Actively investing in new businesses such as lenses for
medical application∙ Rapid technologicalinnovation• Decline in competitiveness when the development of cuttingedge technologies or their application in products is notadvanced as scheduled• Obtaining growth opportunities through the development ofrevolutionary technologies∙ Technology development and creation of new
businesses based on medium- to long-term strategies∙ Open innovation between industry, academia andgovernment∙ Investment in new businesses∙ Investment in M&A activities,etc.

• Failures to investment in R&D and capital investment for new
businesses• Actively tackling M&A activities utilizing a robust
financial structure• Building the foundations of growth through new management
resources acquisition∙ Strategies aimed at the full-scale commercialization of
medical products∙ Engaging in analysis and discussion in the Management
Meeting and Board of Directors from a range ofperspectives including market trends, strategies,
acquisition prices and potential risks∙ Product supply and demand• Fluctuating product prices, too much or too little inventory• Lack of procurement of glass materials∙ Properly responding to fluctuating demand in eachregion and controlling production∙ Multiple purchases and understanding alternative
supplier candidates∙ Geopolitical risks• Expanding various impacts due to global political, social andeconomic trend∙ Continually monitoring the global political, social andeconomic climate to analyze the impact in relation tocorporate activities∙ Climate change and global
environmental issues• Impact on production activities due to damage to plants inJapan or overseas• Burden from carbon taxes and renewable energy purchase costs• Increased order opportunities due to responding todecarbonized society at an early stage∙ Implementation of strategies based on the Environment
Vision 2050 (energy saving and introduction ofrenewable energy)∙ Action and continual improvement based on business
continuity planning (BCP) in Japan and overseas• Impact on new hires and continuing employment due tointensifying competition to hire and retain talented
human resources• Obtaining growth opportunities by hiring and retaining theemployment of talented human resources∙ Job-specific hiring, positional and grade systems,
systems to solicit positional applications internally∙ Creating a comfortable workplace environment bypromoting a healthy work-life balance and diversity∙ Promoting health and productivity management∙ COVID-19 pandemic• Impact of stagnant economic activity on business performance• Impact of decreasing demand on production activities• Impact on health and safety of employees and stakeholders∙ Building and operating a remote productdevelopment framework∙ Development of work-at-home and teleworkenvironment∙ Complicity in human rights
abuses• Boycotts due to direct or indirect complicity in human rights
abuses, impact on corporate activities due to legal violations∙ Formulation of a human rights policy andimplementation of human rights due diligence∙ Request to supplier and confirmation throughself-assessment questionnaires∙ Risks unique to theinterchangeable lens business• Defects due to improper matching between lenses and cameras∙ Quality assurance inspections before product shipments∙ Handling the overwriting of firmware after shipping∙ Product quality and safety• Damage to brand value due to declining product quality or
defects∙ Building and improving quality assurance
systems compliant∙ Taking action and preventing release when quality
defects occur∙ Information security• Leaking of corporate information and personal information due
to damaged information system functions caused by computerviruses and the like∙ Developing information security systems∙ Implementing management based on an information
security policy

・ Compliance• Damage to corporate value due to corporate behavior that
violates laws or diverges from social normal, such as
infringements upon intellectual property rights, bribery, and so on∙ Building compliance management systems∙ Disseminating and ensuring observance of theCompliance Code of Conduct∙ Securing human resources

and peace of mind, creating new light, business structuralreforms, contributing to a sustainable earth, empowering
employees and developing the foundations of trust andsustained growth.

• Key Risks • Key Opportunities∙ Shrinking digital camera
market∙ Reliance on photographic
products business∙ Reliance on specific customers

Please refer to pages 23–26 fordetails.

Tamron regards materiality to achieve sustained growth
together with society as an important matter in the formulationof business strategy and the decision-making process and has
incorporated this into its mid-term management policy. Identified
materiality comes under six categories: creating excitement

Key CSR Issues

Materiality

Mid-Term Management Policy

Creating
emotion andreassurance∙ We will enhance our marketing, product planning and sales capabilities,
provide products that respond to market trends and customer needs toexcite customers, and work to expand our business through increased
market share and other approaches with sales strategies adapted foreach market.

Creating newlight∙ Besides expanding existing businesses, we will step up the creation of
new businesses through enhanced marketing focused on the"resolution of social issues" in line with the guiding principles of theSDGs, and collaborative creation, including through M&A.
∙ In addition to developing elemental technologies focused on our corecompetency in optical technologies, we will pursue R&D in newtechnological fields and focus on a horizontal specialization (including
collaboration between industry, academia and government) such as
collaborative creation.

Business structuralreforms (improved
productivity)∙ We will accelerate the global expansion of our existing businesses, capture
demand in the markets of developing countries with top priority placed onstrengthening our position in Asian market, strive to boost profitability andbolster our operating foundations.
∙ To respond to severe changes to the external environment, we will reinforce
our development structure in China, work to shorten lead times fromdevelopment to mass production, and deliver products that meet customer
needs in each market in a timely fashion.
∙ We will build a global structure of efficient production across three regions,and with the Fourth Industrial Revolution in mind, pursue further
productivity improvements and cost reductions by way of automation,
labor saving and personnel saving with the introduction of smart factories.

∙ Reducing CO2 emissions∙ Recycling resources and reducing
waste∙ Environmentally friendly design∙ Reducing harmful chemical
substances∙ Water management

Contributing toa sustainable
earth∙ To contribute to the realization of a sustainable global environment,
we will reduce greenhouse gas emissions as part of measures to combat
climate change while also promoting the recycling of resources.

∙ Human resource development∙ Fostering the development of
the next generation∙ Developing comfortableworkplace environments andpromoting diversity

Empowering
employees∙ We will promote improved work-life balance and diversity, foster thedevelopment of human resources, and develop workplace environments
in which all employees can demonstrate their full potential.

Developing thefoundations of trust andsustained growth∙ We will strengthen corporate governance to improve the effectivenessof strategies and tactics, and achieve sustained growth.

∙ Contributing to social issues
through business∙ Promoting CSR procurement∙ Enhancing product quality andsafety management∙ Improving the governance system∙ Preparing for major disasters∙ Enhancing internal reporting
systems∙ Expanding the disclosure of
non-financial information

Check the section on “Business & Other risks” to learn more about priority risks and opportunities. https://www.tamron.com/global/ir/management/management_04.html

17

Tamron Integrated Report 2023

Tamron Integrated Report 2023

18

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Vision23 Mid-Term Management Plan and Progress

In 2021 we launched the new Mid-Term Management Plan Vision23 with the aim of achieving newleaps ahead based on building a sustainable business base. We achieved the targets of the plan in
the second year, one year ahead of schedule.
However, we will not be satisfied with achieving the plan, but will aspire to even greater heights
going forward.

Positioning of the Mid-Term Management Plan Vision23
In our mid-term management plan Vision23, we have adopted
the basic policies of executing investments and allocating resources
to make dramatic progress from a long-term perspective, andhave steadily developed the business foundations that will enable
sustainable growth.

Working from this foundation, we will achieve high-quality,
full-scale business growth and maximize corporate value in thenext Mid-Term Management Plan, and have made a start in a
united Group effort to take the next step towards achieving ourlong-term vision.

・Executing investments and allocation of
resources for dramatic progress
・Building business foundations that will enable
Next mid-termsustainable growth
management plan onward
Mid-term management2024–
plan Vision23
Mid-term
2021–2023
management plan
2018–2020
Achieving major leaps

Long-term vision

Basic Policy· Highly profitable core businesses· Expanding businesses in growthfields· Improving corporate
management

Our vision· Good Company· Improving the Tamron brand· A company with work
fulfillment

Achieved a quick V-shaped
recovery to the pre-COVID highprofit structure• Achieved a record gross marginof 40%• Achieved increased net sales
across all segments•

48.4 billion yen

61.0 billion yen

Operating Income

3.6 billion yen

7.0 billion yen

Operating Income Margin

7.4%

11.5%

ROE

3.9%

More than 9%
USD=105
EURO=123* Exchange assumption

19

Achieved record high operating income forthe first time in 15 periods.
Operating income topped the benchmark
of 10 billion yen for the first time ever.

Maintaining high profitability as acore business

11.5%

7.4%
11,038

3.9%

4,246

2016

2017

7,000

5,424
3,575

2,361

2015

11,500

7,408

6,982
4,554

2018

2019

2020

2021

2022

2023

2023

(Planned) (Mid-Term
Plan)

New targets set in light of target achievement

Final year
We will aim for three straight periods ofgrowth in net sales and profit, far exceeding
the targets set out in the Mid-Term
Management Plan.

FY2022 Results

FY2023 Plan

Net Sales

57.5 billion yen

61.0 billion yen

63.4 billion yen

Net Sales

70.0 billion yen

Operating Income

7.4 billion yen

7.6 billion yen

11.0 billion yen

Operating Income

11.5 billion yen

Operating Income Margin

12.9%

12.5%

17.4%

Operating Income Margin

16.4%

ROE

10.5%

9.7%

14.8%

ROE

13.2%

109.91129.95110128131.63138.19

USD=130
EURO=138◆

Mobility & Healthcare Products, Others

Growing sales and profits as asecond key pillar· Taking in the massive Chinese market andproducts for mirrorless cameras· Swift response to new formats· Increasing instore share with OEM
products

expanding business with new technologies
including SWIR and camera module business· Creating OEM products and expanding
share in FA

FY2020Results

2023
Mid-Term Plan

33.6 billionyen

36.5 billion
yen

Operating
Income Margin

15.8%

16–20%■Net Sales (Billion yen)

Operating Income Margin

24.5%

FY2020Results

2020

42.0

2021

2023
Mid-Term Plan

2022

47.8

2023

(Planned)

Operating
Income Margin

6.4%

More than
10%■Net Sales (Billion yen)

Operating Income Margin

12.5%

12.3%

2023

9.1

9.4

2020

2021

2023
Mid-Term Plan

5.7billion
yen

7.5billion
yen

Operating
Income Margin

6.3%

More than
10%■Net Sales (Billion yen)

Operating Income MarginMore than
10%

15.9%

12.0%

13.1%

More than
10%

6.3%

5.1%

36.5

(Mid-Term
Plan)

FY2020Results
Net Sales

16-20%

45.5

expand into the health care domain

17.0 billion
yen

6.4%
33.6

develop customers· Full-scale launch of health care business,

9.1 billion
yen

Net Sales

24.3%

20.4%

Launch as a next-generation key
pillar◆ Create new business domains· Bolster automotive lenses (sensing) and◆· Doubling size of lineup by focusing on

15.8%

FY2022 Initial Plan

Tamron Integrated Report 2023◆

* Operating Income, ordinary income and profit all
surpassed previous record highs by a healthy margin.

FY2021 Results

USD=
EURO=

8.8%
7.0%

6.3%

Surveillance & FA Lenses

Photographic Products

Net Sales

Second year progress

12.9%
11.0%

Expand the size of business in Surveillance & FA, Mobility & Healthcare, and Other➡ Achieved net sales of 10 billion yen in Surveillance & FA, 5 billion yen in Automotive Lenses•

First year progress

16.4%

Vision23 Trends by Business2023 Mid-Term Plan

Net Sales

Stable growth and improved profitability of the mainstay
Photographic Products segment• Double-digit growth in net sales in growth and developmentareas(Surveillance and FA, Mobility & Healthcare)• Also achieved profit growth in Surveillance & FA as a second
key pillar

17.4%

Build a business portfolio with a profit margin exceeding 10% in all segments

FY2020 Results

In the second year, targets of the Mid-Term
Management Plan were achieved in every
aspect a year ahead of schedule.
On the profit front, we have accumulated
profit, outpacing the Mid-Term Management
Plan by around 1.6 times.

■Operating Income (Million yen)
Operating Income Margin➡ Achieved a profit margin exceeding 10% in all segments one year ahead of schedule

Vision23 Consolidated Results
Mid-term Management
Plan in terms of profit
were achieved in thefirst year.

(Operating Income, Operating Margin)

status up to 2022 and other factors· Balanced business portfolio· Contribution of new
businesses

In 2023, the final year of the Vision23 plan, we will aim for net
sales of 61 billion yen, and increase of roughly 25% over 2020
levels despite being lower than 2019. We will also aim for
operating income exceeding 2019, which was a ten-year high,posting 7 billion yen in an effort to achieve a V-shaped recovery
to a highly profitable structure we maintained before the
COVID-19 pandemic.

Consolidated Results and Plans

A company respected andtruly needed by society

ahead and maximizing
corporate value throughthe results of Vison23· Portfolio optimization· Creating and developing new
businesses· Building a functional strategy· Human resources development
and organizational
revitalization

As a result, on the profit front we achieved the targets set out inour Mid-Term Management Plan in the first year, managing toachieve a v-shaped recovery to a pre-pandemic highly-profitablestructure at an early stage.
Then in the second year, the targets of the Mid-Term
Management Plan were achieved in every aspect a year ahead ofschedule by expanding net sales in our mainstay business as wellas in growth and development areas. In addition, we managed toachieve operating income surpassing the target in the Mid-Term
Management Plan by around 1.6 times, with an operating income
margin greater than 15%. As a result, we set new records forprofit by a large margin.
In the final year of the plan, we will not rest on theseaccomplishments; we will aim to reach net sales in the 70 billion
yen range for the first time since 2015, again far outpacing thetargets set in the Mid-Term Management Plan. We will also aspireto greater heights, planning to generate operating income of 11.5
billion yen, an increase in all profit levels.

11.2

2022

13.0

2023

(Planned)

9.2

17.0

2023

(Mid-Term
Plan)

5.7

6.2

6.7

2020

2021

2022

2023

(Planned)

7.5

2023

(Mid-Term
Plan)

Achieved the net sales and profit
margin targets by a wide margin

Broke 10 billion yen mark in net sales
and achieved the target profit margin

Generated net sales as planned /achieved the target profit margin* Lineup of lenses for mirrorless cameras: 8 (end of2020) ⇒ 21 (end of 2022)* Newly introduced compatibility for two mounts* Double-digit net sales growth in the mainstay
Surveillance & FA Lenses segment* FA lens product lineup renewed, new businessfor OEM products acquired* Double-digit net sales growth in the mainstay
Automotive Lenses business for second straightperiod* Created the next field of business in addition to
health care
Tamron Integrated Report 2023

20

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

CSR Implementation

Tamron will continue to contribute to the creation of a sustainable and fulfilling society,where people can feel emotion through the creation of products that solve social issues.

1 Identify social issues

Materiality
Creating emotion andreassurance, creating
new light

High

Importance to Stakeholders

高Contributing to asustainable earth (E)High
高Employeeempowerment (S)Importance to Tamron

Developing thefoundations of trustand sustained growth(G)

Tamron has a CSR Committee that makes decisions on importantmatters relating to CSR management and checks progress inrelation to various targets. Members of senior management
gather to hold discussions overseen by the chairperson, who is
Tamron's president. Details of the state of progress with regard
to targets are reported on a quarterly basis, and decisions are
made with regard to important matters relating to CSR.

Process for Identifying Key CSR Issues
Firstly, we identified social issues surrounding Tamron based oninternational guidelines. We then assessed the importance of
those issues for various stakeholders, and the possibility andpotential impact of any risks. After considering the validity of
the results of our assessment, we identified key CSR issues andsubmitted them for final decision making by the CSR Committee.

STEP

2

Assess the degree ofimportance for eachissue, and consider
its appropriateness

Key CSR Issues

STEP

3

Relevant
Page in thisReportContributing to social issues
through business

P29-30Identify key CSR issues andrevise the CSR themes

Website*1

Technical Information*2

Reducing CO2 emissions

P24

Recycling resources and reducing
waste

P23, 49

Environmentally friendly design

P22

Reducing harmful chemical
substancesP22-23

Water management

P22-23

Human resource development(improve productivity)

P27-28Providing comfortable workplaceenvironments and promoting
diversityP27-28

Fostering the development of thenext generation

P22

Social contributions*3

Expanding the disclosure of
non-financial information

P49-50External Recognition*3

Enhancing product quality andsafety management

P22

Quality and Product Safety*3

Promoting CSR procurement

P22, 42CSR Procurement*3
Human Rights*3

Preparing for major disasters

P22

Risk (crisis management)*3

Enhancing internal reporting systems

P22

Compliance*3

Improving the governance system

P43-44

Corporate governance*3

Environment*3

Human Resources*3*1 Links to detailed pages for each section are provided in the PDF version.
To those who are reading this report in print;*2 Please check our website to lean more about our technical information :https://www.tamron.com/global/technology/*3 Please check our website to lean more about our environment information to corporate governance :https://www.tamron.com/global/sustainability/

21

Tamron Integrated Report 2023

2022 Results

2023/Mid-Term-Goals

SDGs
Goal

Target
3.6

Halve the number of deaths
from traffic accidents
Improve efficiency of
resource utilization
Promote innovation

Implementation of survey to gauge
recognition and understanding of the
Corporate Mission

Formulation of a human rights policy
and building system of human rights
due diligence

Reducing CO2
emissions

CO2 emissions (Scope 1 and 2)
approximately 15.1% compared with
FY2015 levels (6% target)

CO2 emissions (Scope 1 and 2)
2023: 9% or more reduction comparedwith FY2015 levels
2030: 30% reduction compared with
FY2015 levels
2050: 100% reduction compared with
FY2015 levels

Recycling
resources andreducing waste(1) Industrial waste emissions: 18.5%
year on year increase(2) Plastic recycling rate:
China Factory: 6.3% (10% target)(1) Reducing industrial waste emissions:
Reduction year on year
(2) Plastic recycling rate: increase

Environmentallyfriendly design

Reduce bags used for user manuals:
Reduction rate in new models 100%

Reduce bags used for user manuals

Reducing harmful
chemical
substances

Leaks of harmful chemical substancesfrom business locations: 0 incidents

Leaks of harmful chemical substancesfrom business locations: 0 incidents

Watermanagement

Water use
Foshan Factory: 8.1% year on year increase
Vietnam Factory:11.2% year on year increase

Water usage (groupwide): advance
activities for reduction of water usage

Human resource
development
Providing
comfortableworkplaceenvironments
and promoting
diversity(1) Overtime: 24% reduction(Head office: 4% reduction
Aomori: 59% reduction)(2) Mental health check results:
improved year on year
(3) Percentage of female managerial
staff: 10.0% (3.0 points
improvement compared withFY2021)(4) Percentage of employees withdisabilities 2.09%(1) Overtime: no more than 115
thousand hours / year (head office)(2) Mental health check results:
improve year on year
(3) Percentage of female managerial
staff: increase year on year
(4) Percentage of employees withdisabilities 2.3%

Fostering thedevelopment of
the next
generation

Social contribution activity costs:
0.6% of previous year's consolidated
operating income contributed
Revision to regulations concerningsocial contribution activities

Implementation of activities allocating
roughly 1% of average consolidated
operating income over the past three years
Increase in social contribution ratio
aimed at fostering the developmentof the next generation (comparedwith 2022 levels)

Expanding thedisclosure of
non-financial
information

Disclosure of information on the TCFD
recommendations in the Integrated
ReportEnhancement of human resource-related
disclosures

Enhancingproduct quality
and safety
management

Improved design quality and lower
defect costs: year on year improvement

Improved design quality and reduced
defect costs

Affordable and equitable
access to infrastructure
12.4 Minimize adverse effects on
people’s health and theenvironment

Promoting CSR
procurement

Preparation of SAQ survey sheets with
content taking into accountenvironmental and human rights issues

Implemented self-assessment
questionnaire (SAQ) details to reflectchanges to external conditions related tothe environment and human rights issues

12.4 Minimize adverse effects on
people’s health and theenvironment

Preparing for
major
disasters

Creation of an earthquake initial
response manual
Running of safety confirmation
response drills

Conducted disaster response
headquarters simulations

11.b Disaster risk management

Improving thegovernancesystemComplied with all principles of therevised Corporate Governance Code

Improving the governance system

Sustainability System

Based on its Corporate Mission, Tamron seeks to increase its
corporate value and achieve the realization of a sustainable
society. Currently, as indicated by phenomena such as global
warming, sustainability crises are growing steadily andprogressively more severe. As concerns about social issues—
such as human rights and labor issues—become increasingly
serious, there are growing expectations for companies to work
to resolve social issues. Tamron has identified issues that must
be solved to enable sustainable growth for the company andsociety as key CSR issues. The key CSR issues that we haveidentified are incorporated into our management strategy, andwe set targets for these issues each year as we engage in our
corporate activities.

STEP

Key CSR Issues

Contributing tosocial issues
through businessApproach to CSR

The process for
identifying key
CSR issues

Initiative Aimed at Key CSR Issues (ESG)

9.4
9.5

7.3 Improve energy efficiency
13.2 Integrate climate change
measures into strategies

12.2 Utilize resources efficiently
12.4 Minimize adverse effects on
people’s health and theenvironment
12.5 Reduce waste throughrecycling

6.3
6.4

Improve water quality
Improve efficiency of water
utilization

5.5 Women’s leadership
8.2 Economic productivity
8.5 Equal pay for equal work
10.2 Inclusion of all people

4.3

Access to technical andvocational education

17

Strengthen the means of
implementation andrevitalize the global
partnership for sustainable
development

9.1―

Tamron Integrated Report 2023

22

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Environmental Strategy

We will pursue decarbonization-oriented
management to realize Environment Vision 2050.

Related SDGs

State of Achievement of Reducing CO2 Emissions in 2022

Environmental Vision 2050
Tamron has formulated the Environment Vision 2050 to help
create a fulfilling society where all people can live lively andenergetic lives, with consideration for recent trends inclimate change caused by global warming. To build afulfilling society, we will engage in activities to achieve threevisions, a decarbonized society, a resource recycling society
and a society that exists in harmony with nature.

Decarbonized society

2050 Target

Reduce CO2 emissions tozero

2030 Target

Activities carriedout every fiscal year

Reduce CO2 emissions by 30%(compared with 2015 levels)

6,933t45,8142015(Reference Year)

Comparison
with 2015

15.1 %
reduction
38,881

2022(Result)* Including
reduction effects
from the TEPCOGreen Basic Plan
and Chinese I-REC(hydroelectricderived electricity)

Fulfilling society

In 2017, Tamron Optical (Foshan) in China began installing solar
power generation systems. At the end of 2020 additional
generating systems were installed, and in 2022 CO2 emissions
were reduced by around 580 tons, which corresponds toroughly 2.5% of the emissions produced by the Foshan Plant.
In addition, since May 2022 Tamron has subscribed to the Green
Basic Plan*1 that involves the issuance of non-fossil fuelcertificates covering roughly 30% of the electricity used at thehead office. Tamron Optical (Foshan) Co., Ltd. also purchased
I-REC*2 certificates covering part of its electricity usage in 2022.
Combined, approximately 4,300 tons of CO2 were reduced toeffectively zero. In 2023, we have set the target of reducing CO2
emissions by at least 9% compared with 2015 levels, and will
make every effort to achieve this target.

Resource recycling society

Society in harmony withnature*1 Green Basic Plan: A RE100-compatible effective renewable energy
option that combines FIT non-fossil fuel certificates (with tracking) for the
average electric power of all power sources provided by TEPCO Energy
Partner, Inc. and non-FIT non-fossil fuel certifications (with information
about power source attributes) specific to renewable energies.

*2 I-REC: Renewable energy-based electricity certificates certified andissued according to the rulebooks and electronic tracking systems basedon them provided by the Netherlands-based non-profit organization I-REC
Standard.

Reducing waste
Reducing ocean plastics
pollution
Appropriate water
management

Reducing harmful
chemical substances
Preserving biodiversity

Solar power generation system (improvement at Foshan plant, China)

Solar power generation system (improvement at Tamron Europe)

We recognize that global environmental issues affect all of humanity. We will strive to reduce
environmental impact, conserve the environment, and contribute to the development of asustainable society that exists in harmony with the environment.

Our vision

CO2 Emissions (Unit: t-CO2)

Energy-Saving Initiatives

Environmental Vision 2050

MissionIn 2022, Tamron set the target of reducing CO2 emissions by
6% compared with 2015 levels. In addition to the in-house
consumption of renewable energy through solar power
generation at the Foshan Plant in China and other sights, since
May 2022 non-fossil fuel certificates have been issued forroughly 30% of the electricity used at the head office,achieving net-zero CO2 emissions for the portion of electricity
self-generated and covered by the certificates. Tamron Optical(Foshan) Co., Ltd. in China has also purchased I-REC applying topart of its electricity usage, achieving net-zero CO2 emissions forthe portion covered by the purchases. In part due to thoseeffects, overall we were able to achieve our targets with areduction of 15.1%, exceeding the target reduction.

Setting of annual targets and activities according to the key CSR issues● Policies and measures to achieve a decarbonized society· Promote energy savings and reduce CO2 emissions generated by air conditioning equipment and the
product manufacturing process· Promote the introduction of renewable energies● Policies and measures to achieve a resource recycling society· Work to reduce and recycle waste, and contribute to the reduction of ocean plastic pollution(business sites: reduce waste plastic, products: use recycled materials for packaging plastics andreduce volume)· Work to reduce water consumption and recycle water● Policies and measures to achieve a society in harmony with the environment· Strive to preserve biodiversity through coordination and collaboration with local communities· Endeavor to reduce harmful chemical substances and implement appropriate management

CSR Activities Pursued in Partnership with the Supply Chain
In keeping with its corporate philosophy and the Standards ofBusiness Conduct, Tamron works with its suppliers to comply
with laws and regulations and aims to build partnerships toprovide high-quality products and services based on fair andtransparent transactions. With regard to quality and theenvironment, we confirm the details of initiatives through onsite
and document-based audits based on our own standards.
Since 2008, Tamron has engaged in CSR procurement. The Tamron

Supplier Code of Conduct, which is compliant with the latest
edition of the RBA Code of Conduct, has been distributed
to all suppliers along with a request for compliance. We also
conduct SAQ surveys on the current state of CSR promotion as
appropriate for suppliers in Japan and overseas. Goingforward, we will continue to work with suppliers to consider
measures to realize a decarbonized society.

Monitoring CO2 Emissions in the Supply Chain
In addition to direct emissions from the burning of fuels such as
petroleum and coal (Scope 1) and indirect emissions associatedwith the use of electricity, etc. (Scope 2), we continue tocalculate all over indirect emissions (Scope 3). Among Scope 3
emissions, in 2022 the largest percentage were Category 1(emissions from purchased goods and services).

Please check our website to learn more about our CO2 emissions including Scope 3 emissions. https://www.tamron.com/global/sustainability/environment/co2_reduction.html

23

Tamron Integrated Report 2023

Tamron Integrated Report 2023

24

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Environmental Strategy

Risks and opportunities based on the 1.5°c scenario

Information Disclosures Based on TCFD Requirements

Category

GovernanceRisk Management

We recognize climate change as one of our key management
issues. Tamronʼs policy on risk response including climatechange, its targets and other important matters are
discussed and determined by the CSR Committee, which ischaired by the president and whose members are all fulltime officers and divisional heads serving as CSR officers,
including the vice-chairperson who serves as the Chief
CSR Officer. Systems are in place to enable appropriate
supervision by the Board of Directors, including therequirement that material matters be reported to theBoard. The CSR Committee also checks the progress oftargets laid out in Environmental Vision 2050.

Tamron views opportunities and risks associated with climatechange as one of the important perspectives to be consideredwhen formulating its business strategy. The CSR Committee
chaired by the president revises the analysis and evaluation ofopportunities and risks. In addition, Chief Risk Management
Officer has been assigned under the president to oversee anddirect the control of important risks and responses to serious
global events.

Strategy
We conducted an evaluation of risks and opportunities basedon the 1.5°C scenario. We recognize the relevant risks andopportunities as shown in the table on the right. It will also benecessary to contribute to worldwide initiatives as part of theshift to decarbonized society to ensure the sustained corporate
activities of Tamron. Tamron formulated Environment Vision
2050 for this purpose. We will contribute to a sustainable
earth by reducing CO2 emissions to zero by 2050.

•

Burden of carbon
taxes

We have set CO2 emissions—which account for 98% of ourgreenhouse gas emissions—as one of our key climate change
indicators, and manage targets related to CO2 emissions.
In Environmental Vision 2050, we aim to achieve zero CO2emissions in our business activities by 2050, and have also set
the interim target of reducing CO2 emissions by 30% comparedwith 2015 levels by 2030. We have also continued to calculate
indirect emissions (Scope 3, hereafter). Category 1 (emissions
produced from all products purchased or acquired) account fora large percentage of Scope 3 emissions, roughly 70% of thetotal. Going forward, we will consider reductions with a viewto setting targets for Scope 3 emissions.

by 2030, and have set the target of making 3% reductions
each year since 2021.

Cessation of businessactivities due tonatural disasters

6(2015 comparison)100%
reduction%
reduction(2015 comparison)(2015 comparison)

Approx.

25

Tamron Integrated Report 2023

2022 target

Large

MediumMedium-toLong term

Small

MediumLong term

MediumSmall

Medium-toLong term

Large

Large

Damage to corporate value or risk of suspension of tradethrough inability to respond to the shift to a decarbonizedsociety

Risk of suspension of product supply as a result of factory
shutdowns and disrupted supply chains due to natural
disasters of increasing severity (flooding and localized
torrential rain)➡ We will deal with short-term climate change risks related to the
supply chain with business continuity planning (BCP).

Expanded demand forinfrastructure
inspection lenses

Expanded sales of lenses used in inspections of infrastructure
contributing to improved social resilience such as disasterprevention and mitigation➡ We view this as a medium-to-long-term growth opportunity andaim to expand net sales through activities reflected in ourmanagement strategy.

Assumptions for scenario analysis (as of 2030)• 2030 emissions: approx. 49,904 t-CO2 / year
• 2030 electricity rates: approx. 1,048 million yen / year
• 1.5°C scenario (NZE2050, World Energy Outlook 2021)

32,0702030 target

Short term tolong term* Assessment as of March 2022

17,8342015 results

Extent ofimpactIncreased operating costs due to higher burden from renewableenergy purchases needed to meet 30% reduction comparedwith 2015
23 milliion yen / year (breakdown: Japan 17 million yen, China
1 million yen, Vietnam 3 million yen)

➡ As a result of assessing risks for our production sites (three sites
in Japan and two overseas, in China and Vietnam respectively),
we confirmed that changes to future operational risks due toflooding (overflowing rivers) are limited.

•

30

%
reduction

Higher operating costs due to an increased burden from carbon
taxes
309 million yen / year (breakdown: Japan 81 million yen, China
215 million yen, Vietnam 12 million yen)

➡ While the Tamron Group will adapt to a decarbonized society
based on Environment Vision 2050, if concerns emerge among
stakeholders about our response, there is a risk of declining net
sales due to damage to corporate value, the suspension of tradeor other developments.

•

Opportunities

43,065••

Physical risks

Possibility➡ When we estimate our CO2 emissions, carbon tax burdens andrenewable energy purchase amounts in 2030 based on the 1.5°C
scenario (NZE2050, World Energy Outlook 2021), there are risksof the following costs increasing.

Transition
risks

Reputation

Materialization
timingBurden of carbon taxes and risk of increased costs due torenewable energy purchases

Renewable energy

Greenhouse Gas Emission Targets Based on Environment Vision 2050 (Unit: t-CO2)

45,814

Business impacts•

Indicators and Targets

Reduction of CO2 emissions
To realize the decarbonized society we aspire to create inEnvironment Vision 2050, we have set the interim target of
reducing CO2 emissions by 30% compared with 2015 levels

Items

2050 target

Tamron Integrated Report 2023

26

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Human Resource Development
Related SDGs

By strengthening the potential of human resources
and improving workplace environments, we will
create a company that offers job satisfaction.

Basic Approach
The success of each and every employee is essential to therealization of a sustainable society and to Tamron’s own
sustainable growth. It is important to develop an environment
in which each employee can fully demonstrate their potential,
and fulfill their principal duties while being motivated andexperiencing job satisfaction. At Tamron, we actively work topromote diversity, healthy work-life balances and health &productivity management. Additionally, we see human resources
as valuable assets, provide opportunities for employees todevelop and demonstrate their abilities with respect for diversity,and aim to be a company where employees can have a global
perspective, value teamwork, demonstrate creativity andexperience job satisfaction.

Strengthening the Potential of Human Resources
Human resource development
Through a Mission Leadership System where clear missions aredefined for each leader and the entire team works to achievethem, Tamron strives to facilitate the growth of leaders and theiremployees while strengthening overall organizational capabilities.
For managers and employees at similar career levels, we havealso introduced the Post Qualification System which determines
grades and compensation according to the level of responsibility
and difficulty of all roles to be fulfilled as required by management,
irrespective of seniority or ability. Employees who have developed
a certain level of occupational skills are offered two career tracks
under the Post Qualification System, the manager course orprofessional course. In this way, each employee can attain aworking style that fits their aptitude and intentions.

27

Work-Life Balance

Diversity
To enhance corporate value in the medium and long term, it isimportant for a diverse range of individuals to demonstrate theirfull potential, innovate and create value. In addition to women,
foreign nationals and others bearing diverse attributes, we also
believe it is important to attract experienced talents on career
paths in other industries and diversity in specialist fields in order
to coalesce the diverse knowledge, experience and skills of all
employees to enhance Tamron’s competitiveness.

Promoting flexible workstyles

Women’s empowerment
Women currently account for around 20% of Tamron
employees, but in keeping with the guidelines for action
declared in the Act on Advancement of Measures to Support
Raising Next-Generation Children, we aim for at least 25% of
new graduate hires to be female. We believe it is essential toempower female employees and raise the percentage of female
managers in the face of a declining working population andindustrial restructuring.

Empowering senior employees
Starting 2021, Tamron established the Meister Program, a newpositional system for employees who are reemployed after
reaching the mandatory retirement age, giving senior employees
further opportunities to flourish.
For employees who possess advanced expert insight,
technical capabilities, know-how, exceptional knowledge andskills, we have established Senior Meister and Meister positions.
By giving these employees responsibilities and appropriatecompensation, we encourage them to pass on their knowledge
to successors and motivate them to be even more active.

Tiered and occupation-specific employee training

Ensuring the success of mid-career hires

Tamron offers a range of employee training customized by tierand occupation. For new graduate hires, Tamron provides fouryear training starting from initial recruitment to improve basic
job knowledge and formulate mid-term career plans. Mid-career
employees are given practical training commensurate with theirpositions, including the training of junior employees. For
managers, we provide training to enhance their organizational
management capabilities, goal management training, harassment
training and other training to raise awareness of their roles.
Technical employees are offered classroom instruction toacquire technical skills and also undergo practical training in
related departments as a way of creating opportunities for themto learn how their activities are directly related to actual
operations. We also offer a range of employee training programs
such as voluntary online English conversation classes in an effort
to develop the capabilities of our human resources.

In addition to graduate recruitment, Tamron has established aninternal system to hire mid-career employees with a wide range ofknowledge and experience and developed environments in which
they can demonstrate their capabilities. Mid-career hires accountfor around half of all employees, and integrating them with new
graduate hires helps to boost the corporate value of Tamron.

Tamron Integrated Report 2023

Tamron doesn’t just place an importance on work. We also
think it is important for employees to enjoy enriched private
lives including childcare, family care, hobbies and studies, andrun a number of initiatives with this sentiment in mind.
• Childcare leave• Shorter hours for childcare (for employees with children up
until the end of April of Grade 4 of elementary school)• Caregiving leave• Nursing care leave• Paid leave in hourly increments• Telework / working from home
• Flextime scheme (4 hours core time, calculated over amonthly period)

Related Targets and Results
2022 Targets

Results

10% year-on-year reduction in
overtime companywide

24% reduction(Head office: 4% reduction
Aomori: 59% reduction)

Reduction in employees withhigh stress levels

7.5% reduction

Year-on-year improvement (7%) to
the percentage of managerial
positions (section manager and higher)
filled by women

10.0%

Achieve target employment rateof people with disabilities (2.3%)

2.09%

Moreover, since April 2021, we have revised our flextime system,
allowing employees to set daily working hours according totheir preferred work and private hours, under the condition thatthey work 4 hours of core time and meet the number ofprescribed working hours per month. This has enabled us towork more flexibly.
From October 2022, we expanded employee eligibility tocover all full-time employees including managers. We havemade progress in changing systems so that they pose advantages
to both individuals and the company, such as allowing employees
who were previously working under a shortened working hours
scheme to raise children to switch to the flextime system,enabling them to work full-time.
As of December 2022, around 65% of head office employees
take advantage of this system.

Support for achieving a balance between workand childcare
At the same location as our Head Office we have establishedthe in-house Tamron Kids Day-Care Center (small-sized daycare
center licensed by Saitama City). The Center is available to the
local community as well as employees. In addition to support
to help female employees return to work as soon as possible,
we also help male employees take part in childcare.
Previously, the HR department had been informing individual
employees and their supervisors about the ability for male
employees whose spouses have given birth to take leave
including spousal childbirth leave (special leave) as well as
short-term childcare leave, but to coincide with registeredlegislation that took effect in 2022, we disseminated thisinformation companywide. In addition, to all employees who
have notified the Company of personal or spousal childbirth,
we provide individual information about leave systems andconfirm their intentions regarding childcare leave. Since 2020
the number of employees taking long-term leave in excess of
one month has increased, and the number of male employees
who have taken childcare leave at birth (commonly known as
Postpartum Maternity Leave for Fathers), which was newly
established in October 2022, is also on the rise. Going forward,
we will continue to support both male and female employees
in finding a balance between work and childcare responsibilities.

Initiatives to reduce overtime
Tamron strives to improve productivity and works to reduce
overtime hours based on the basic policy of achieving 10%
year-on-year reductions. In 2022, overtime was significantly
reduced at sites in Aomori Prefecture in particular, in part due toefforts to introduce smart factories. In the future, we willcontinue working to improve the work attendance literacy ofeach employee, and strive to reduce overtime hours throughinitiatives such as the visualization of work attendance data
and the through management of targets.

Health & Productivity Management
Tamron believes that employees being able to work in good
physical and mental health and with job satisfaction is the
single most important factor directly link to improved corporate
value. This is not limited to considerations for employee safety
as required by law. Proactively working to maintain andadvance employee health creates passion and vigor on thepart of employees and leads to a more energetic organization.
We have continued to conduct mental checks twice a year,
relay results including stress levels by age ground andorganizational level to departmental managers, and reflect
those activities in improvements to the workplace environment.
Going forward, we hope to implement detailed measures toadvance the health of employees and further promote healthand productivity management.

Change in the Number and Rate of Eligible Male
Employees Taking Childcare Leave■Short-term ■Long-term

Leave usage rate

63.3%
45.0%

71.4%

54.3%

32.4%
1
2

5

18

18

17

11

2018

2019

10

2020

2021

2022

Tamron Integrated Report 2023

28

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Technology Strategy

Shift from “Imaging” to“Measuring”

Shift from “Imaging” to “Measuring”
The technologies cultivated through the development of these

optical technologies, as symbolized by its photographic lenses.

photographic lenses have enabled Tamron’s entry into the areas

The optical technologies, outstanding mechanical technologies

of security (urban surveillance, ITS traffic monitoring, facial

Leveraging its cutting-edge optical technologies as its

and production technologies that Tamron has cultivatedauthentication), industry (FA), automotive (ADAS) and healthstrength, Tamron has provided products that meetthroughout its history have been utilized in the products it has

care (endoscopes). The fields listed here correspond to the threecreated over the years, from the Adapt-A-Matic and SP (Superior

segment classifications that describe Tamron’s business domains,

Performance) series, to the world’s smallest and lightest all-in-

namely the Photographic Products, Surveillance & FA Lenses,

one zoom lens, large-aperture zoom lenses, ultra-telephoto

Mobility & Healthcare, and Others.

the needs of customers across a wide range of fields,
including the industrial sector. Looking ahead,
Tamron will further accelerate innovation that willzoom lenses, VC (Vibration Compensation) mechanism lenses,

lead to the development of new businesses, achieving

the Ultrasonic Silent Drive (USD) and the liner motor focus
mechanism (VXD).

a fulfilling society across a wide range of fields.

Shogo Sakuraba

Social Issues Recognized by Tamron and Entry into New Fields

Corporate Vice President

Expand the scope of business utilizing technological capabilities
Explanatory Notes
Sectors Tamron is considering
entering in the future
Sectors in which Tamron iscurrently active

Achieve a fulfilling society across awide range of fields
Promote a technology strategy

Agricultural sector

Shift from “Imaging”
to “Measuring”
in each industry

Livestock and crops monitoring,
agrochemical spraying

Logistics sector
Wearable devices, unattendeddeliveries

Infrastructure sector

Robotics sector
Smart homes, service robots

Home electronics sector

Automotive sector

Urban surveillance, ITS (traffic monitoring),
facial authentication

ADAS / autonomous driving
technologies

Beyond 5G, space-based
communications

High-precision
sensing technologies

Modularization
technologies

Industrial sector

High sensitivity
technologies

FA cameras, AI, image processing

Opticaltechnologies

Tamron Integrated Report 2023

Nursing and healthcare sector
VR, wearable devices

Downsizing and weightsaving technologies

High heat resistancetechnologies
High durability
technologies

technologies it has developed to date with the aim of creatingother than imaging.

new products and new businesses that will help solve social issues.

Specifically, we are working to apply optical technologies toOf the 17 goals that make up the Sustainable Development

medicine and health care to address Goal 3, autonomous

Goals (SDGs), the goals Tamron recognizes as important social

driving, next-generation communications and artificial satellites

issues include Goal 3: Good Health and Well-Being, Goal 9:

for Goal 9, infrastructure inspections for Goal 11, agricultural

Industry, Innovation and Infrastructure, Goal 11: Sustainable

and environmental analysis (measurement) for Goal 13, andCities and Communities, Goal 13: Climate Action, and Goal 16:

surveillance and AI for Goal 16.
While focusing on keywords aimed at achieving those goals

To solve these social issues, Tamron will shift its policy, switchingsuch as optical devices, filters (spectroscopy) and illumination

its technical strategy from the conventional “Imaging” tooptics, we will reinvigorate co-creation with outside partners,“Measuring.” Tamron is pursuing the development of products

including collaboration between industry, government andthat fulfill various needs of society by performing analysis andacademia, combined with in-house co-creation, leading to theimage processing utilizing information that is invisible to thedevelopment of innovations.

Achieving a Fulfilling Society across a Wide Range of Fields

Security sector

Infraredtechnologies

leveraging the ability to acquire information through methods

human eye, a key strength of optical technologies, andSurveying, building inspections,equipment inspections

Free space opticalcommunication sector

Additionally, going forward Tamron will leverage the optical

Peace, Justice and Strong Institutions.

Digital cameras

29

Since its founding in 1950, Tamron has continually refined its

Coating technologies

Medical sector

In recognition of its 70th anniversary in 2020, Tamron

In each industry, we will shift our technical strategy fromestablished a new corporate mission: Tamron creates emotion“taking images” to “measuring,” with the aim of achieving aand reassurance through its mastery of light, contributing to thefulfilling society across a wide range of fields. We will expand

realization of a fulfilling society. Tamron has also formed a long-the possibilities of optical technologies by addressing many ofterm vision to be a company that is respected and truly neededsociety’s issues for the future, providing value around the world.

by society.

Rigid endoscopes,
3D endoscopes

High-precisionevaluation technologies
Production
technologies

Mechanicaltechnologies

Visible lighttechnologies

Tamron Integrated Report 2023

30

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Strategies by Segment

Photographic Products"Human Focus"
Tamron will remain user-centric and study people while designingand manufacturing lenses so that users around the world can fully
continue to enjoy photography in their own way.

Segment Characteristics
Products Offered

Lenses for interchangeable lens cameras (mirrorless cameras and DSLR)

Production Methods

Own-Brand products / OEM products

Delivery Destinations

Electronics retail stores, online electronics retailers (Own-Brand products), major camera
manufacturers (OEM products)

Related SDGs

Users

Consumers

Interchangeable Lens Camera Market
Environment (Billion yen)

Market Situation■Mirrorless ■DSLRInterchangeable
Lens Camera Market

47%
increase year on year

Summary of Business Results
Sales Composition by Region(2021–2023) (Billion yen)(2022) (Own-Brand)

Interchangeable
Lens Market

18%

United
State

▲

42.0

45.5

47.8

Japan
36.5

14%
China

2021

2022

2023

(Planned)2023(Mid-Term
Plan)

Europe23%

20%

In the Photographic Products Business, we achieved
our targets for net sales and operating income margin
two years ahead of schedule in 2021, the first year of
our Vision23 Mid-Term Management Plan. Then in
2022, the second year of Vision23, we achieved
increases in both net sales and operating income,which rose to 45.5 billion yen and 11.2 billion yen
respectively, while the operating income margin hit arecord-high 24.5%.
There were also developments on the product launch
front. Our lineup of own-brand lenses for mirrorlesscameras went from eight at the end of 2020 to 21 by
the end of 2022, over 2.5x growth. We also added
support for two lens mounts in an effort to attract awide customer base.

Tamron Integrated Report 2023

415.9

61% increase

91.3

96.8
272.4

282.4

247.0

2018

2019

2020

year on year

523.4
324.6

2021

2022

In 2023, we will aim for increases in both sales andprofit, with net sales of 47.8 billion yen (up 5% from2022) and an operating income margin in the 24%
range. The biggest factor underpinning our expectationof increased sales is market stabilization due to adiminished impact from the COVID-19 pandemic.
We also plan to release around five new appealing
models in our lineup of own-brand products. With
these new products, we aim to further increase ourmarket share, and boost sales of mirrorless camera
products to around 85% of total sales.

2022 Results

In terms of support for new lens mounts, Tamron released the70-300mm F/4.5-6.3 Di III RXD (Model A047) for the Z-mountin September 2022, entering the market as the first third-party
lens manufacturer in the world to come out with an AF lens forZ-mount. As for releases of lens for the X-mount, Tamroncame out with the 17-70mm F/2.8 Di III-A VC RXD (Model▲

Vision23 Mid-Term Management Plan Progress and Future Policy

31

343.8

2022 Results and 2023 Strategies

25%

16-20%

15.8%

2020

APS-C: 14% increase year on year
Full Frame: 33% increase year on year

year on year

Other regions

24.3%

20.4%

33.6

29% increase year on year

Operating Income Margin

24.5%

174.6

5% decrease

86.8

457.0
297.3

State of Progress on the Vision23 Mid-Term Management Plan

■ Net Sales

610.2

569.7

2023 Strategies

B070) in July 2022, and released the 150-500mm F/5-6.7 Di III
VC VXD (Model A057) in October. Additionally for E-mountcameras, Tamron released the 20-40mm F/2.8 Di III VXD(Model A062), featuring a focus ring with an improved feel
when adjusted, as part of efforts to flesh out its lineup of
mirrorless camera lenses and expand the customer base.

Percentage of Own-Branded Mirrorless Products

We will continue our basic policy of launching around fiveappealing models in our lineup of own-brand products
annually in an effort to expand our market share. As a result of
these efforts, we expect our lineup of lenses for mirrorlesscameras to increase to 26 by the end of 2023. Reflective of
market demand, we will roll out these lenses for three camera
mounts, E, X and Z.

■Mirrorless ■DSLR

60%

40%

30%

23%

70%

77%

2021

2022

90%
40%
10%
2018

2019

60%

2020

Value Creation Initiatives
Tamron offers products that excite and surprise people. A typical example is the 50400mm F/4.5-6.3 Di III VC VXD (Model A067) that was released in September 2022.
By giving the product a 50 mm focal length at the wide end and adding half macrofunctionality, convenience has been vastly improved over previous models, and users
can enjoy everything from table-top shots to ultra-telephoto photography with asingle lens. By providing these kinds of products, Tamron will continue to help create
new value.

50-400㎜ F/4.5-6.3 Di Ⅲ
VC VXD (Model A067)

Tamron Integrated Report 2023

32

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Strategies by Segment

Surveillance & FA Lenses

Segment Characteristics
Delivery Customers

In the field of surveillance, lenses have the power to be the eyes ofsociety and keep people safe. Going forward, we will continue tocontribute to a safe and secure society by developing and marketingproducts that cater to the needs of the global market.

Our Strengths

Related SDGs

Related Social Issues

State of Progress on the Vision23 Mid-Term Management Plan

Sales Composition by Application(2021–2023) (Billion yen)(2022) (Surveillance & FA)

12.3%

More than
10%

TrendsDemand for theSurveillance Segment

Operating Income Margin

12.5%
6.4%

・Ability to develop and manufacture 4K-compatible high-resolution products(with sights also set on 8K in the future)
・Creating environments that enable safer and more secure lifestyles, including security
and disaster prevention applications
・Developing fully automated or labor-saving inspection and surveillance of power
generation sites, equipment and facilities, such as biomass power plants

Market Situation

Summary of Business Results■ Net Sales

・Major camera manufacturers and machine tool procedures from around the world,
including the United States, Europe, South Korea, Taiwan and China.

Camera modules

Lockdowns initiated in response to the spread of COVID-19 have been lifted, and market trends
are heading toward a gradual recovery due to economic measures put in place by governments
around the world.
Market growth continues

7%

5.1%
Teleconferencing
17.0

9.4

13.0

2022 Results and 2023 Strategies

FA

10%

Surveillance

64%
2020

2021

2022

2023

(Planned)2023(Mid-Term
Plan)* Disclosure segments have been changed as of 2021 (only the Surveillance & FA Lenses segment has been made independent from the existing Commercial /Industrial-use Optics segment). The 2020 results are reclassified under the new disclosure segments.

▲

9.1

11.2

19%

In the fields of surveillance lenses, due to the expanding
demand for higher image resolutions and high-performance,high-quality products, Tamron has focused on developing
products with high added value, including support for 4K
resolutions. Additionally, in the field of FA lenses, Tamroncompleted a revamp of its lineup begun in 2020, and has
managed to place a new focus on the development of OEM▲

Vision23 Mid-Term Management Plan Progress and Future Policy
In 2022, the second year of the Vision23 Mid-Term
Management Plan, we achieved a recovery from themarket downturn caused by the spread of COVID-19
infections in 2021 and the worldwide semiconductor
shortage, with increased sales of products forsurveillance cameras, factory automation (FA) andmachine vision lenses, and teleconferencing lenses. As
a result, we were able to achieve net sales in the rangeof 10 billion yen for the Surveillance & FA lenses
segment overall. On the profit front we were also
successful, with profit increasing significantly due tovarious factors including a reduced burden from upfront development investment in the FA field, and theeffects of the weakening yen. Moreover, operating
income margin rose into the 10% range targeted in

33

Tamron Integrated Report 2023

Vision23, and we successfully expanded the size of thebusiness together with profit growth.
In 2023, we will fulfill our goal of achieving higher
net sales and profits in each field, including surveillance,
FA and camera modules, aiming to achieve doubledigit growth in net sales and profit, reaching a recordhigh net sales of 13.0 billion yen (up 16% year onyear) in the segment overall, with operating income of
1.6 billion yen (up 14% compared with 2022). Market
expansion in the field of surveillance & FA lenses is
expected to continue in the future. In response to thisgrowth trend, Tamron will also focus on expanding
sales of its existing products and developing new
products with high added value.

2022 Results
projects. We have also stepped up marketing of industrial
lenses compatible with the short-wave infrared (SWIR) range,
which is expected to see growth in the future. In the area ofcamera modules, at the same time we began full-scale sales ofa module whose began full-scale sales of a module whose
developed was completed by 2021, we began develop of a
new camera module to be launched in 2023 or later.

2023 Strategies

In particular, in the surveillance lens segment we will focus on
the development of lenses compatible with high-resolution
cameras which are experiencing growth in demand year afteryear, while in the FA lens segment we will work to strengthen
sales of new products whose lineup refresh is now complete.
At the same time, we will strive to maintain and strengthenties with key manufacturers in both segments. In the camera
module business, we will strengthen the rollout of development
products that complete with the National Defense
Authorization Act (NDAA) while continuing to work on thedevelopment of OEM models.

Value Creation Initiatives
In the area of high-resolution FA and machine vision lenses, we contribute to improved
productivity in the industrial field by providing vision functions to manufacturingmachinery and manufacturing robots. Additionally, through temperature monitoring
using far-infrared camera modules and SWIR-based substance identification, we offer
safety and peace of mind in various scenarios, including health care and care of theelderly. Moreover, our lenses for surveillance cameras watch over cities and people’s
lives, helping to create sustainable cities and communities.

SWIR Lenses

Tamron Integrated Report 2023

34

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Strategies by Segment

Mobility & Healthcare
Products, Others

Automotive Lenses
Segment Characteristics

Our products and technologies contribute to people’s peace of mind,
safety and health, as the eyes of vehicles in the automotive field
where autonomous driving is advancing, and as the eyes of doctors in
the medical field with the advance of less-invasive procedures.

Product Features

Related Social Issues

State of Progress on the Vision23 Mid-Term Management Plan
(2021–2023) (Billion yen)
Operating Income Margin

13.1%

12.0%

More than
10%

6.3%

Breakdown of Net Sales by
Category (2022)

6%

6.2

•

Environmental issues such as global warming and fuel depletion
Rural depopulation and aging, securing means of transportation due to personnel shortages

Size of the ADAS and Autonomous
Driving Sensor Market (Billion yen)

Trends6.7

Due to the demand for advanced driving control, theresolution and functionality of ADAS* sensors is
improving, and the number of sensors being installed ison the rise.

* ADAS is the acronym for Advanced Driver Assistance System. A system thatprovides advanced driving support including automated braking and sudden
start prevention mechanisms.

Automotive

82%

Medical

4%

9.2
5.7

•

Drones and other

15.9%

•

Market Situation

Summary of Business Results■ Net Sales

As our products related to people’s safety, high levels of durability and quality are essential. Even after
an order is received, we continue to work with customers and users through an iterative process ofdevelopment and reliability testing over three or four years before moving on to mass production.
• As the product lifecycle is also very long, we can easily formulate long-term business plans.
•

Related SDGs

Autonomous
DrivingrelatedMarketLegislation is being developed in various countries aheadof the realization of fully autonomous driving• Demand across a wide range of applications will
increase for use in sensing•■ Radars ■ Cameras■ Ultrasonic sensors■ LiDAR

119.5

1.7

8.5
147.6

0
0.6

90.8
81.5
808.7

1,474.2
1,214.2

680.2

460.8

348.9

2019

2020

730.0

850.5

2023
forecast

2025
forecast

Source: Forecast Size of the Global ADAS/Autonomous Driving
Sensor Market
Yano Research Institute Ltd.

7.5

2022 Results and 2023 Strategies
2021

2022

2023

(Planned)2023(Mid-Term
Plan)

8%

* Displayed segments have been changed as of 2021 (the existing Optical Components Business and Commercial
Industrial-use Optics Business aside from the Surveillance & FA Lenses segment have been integrated). The 2020
results are reclassified under the new disclosure segments.

In 2022, the second year of the Vision23 Mid-Term
Management Plan, we managed to reach our target
ahead of schedule for the second straight year,
recording an operating income margin of greater than
10%. A major factor behind this was growth in themobility field. Despite a decline in production due tothe COVID-19 pandemic and semiconductor shortages,
increased profits from double-digit sales growth in the
key market of lenses for automotive sensing, improved
productivity due to higher production volume, controlof SG&A expenses and other factors led to high-levelgrowth. In the health care field, we began mass
production of a suite of products whose development
had been underway since the new business development
stages, and achieved double the net sales of 2021.

35

Tamron Integrated Report 2023

We have also produced strong results by securing neworders for the next-generation of products.
In 2023, we expect this performance to continue,and project that net sales will rise over 40% comparedwith 2022 levels in both the mobility and health caresectors. In the segment overall, we will target a 2.5
billion yen increase in net sales over 2022, which
would even be 1.7 billion yen higher than the target
set out in Vision2023. Although we forecast that
semiconductor shortages will continue to have an
impact, the size of the business will continue to growthsteadily as the third pillar of Tamron’s operations.
In 2023 Tamron will continue to develop technologies
and cultivate new customers, achieving businessexpansion in the mid-to-long term from 2024 onward.

2022 Results

Despite the impact of semiconductor shortages, demand forcar models equipped with ADAS has risen. As a result oftechnological responses to accommodate higher resolutions
and improvements to quality and production systems thatenable high quality and mass production, we have enjoyedstrong sales of automotive lenses for sensing, achieving▲

Vision23 Mid-Term Management Plan Progress and Future Policy

▲

2020

Compact Digital Cameras /Video Cameras

double-digit growth in net sales to 5.5 billion yen, successfully
expanding the business to a size of over 5.0 billion yen.
Operating income also improved. As a result of higher net
sales and suppression of SG&A expenses, an improved
operating income margin was achieved.

2023 Strategies

We will focus on technological innovations aimed at achievinga safe and secure society, endeavoring to create an environment
enabling the provision of high-quality products from a customer
standpoint, informed by medium- to long-term perspectives.

Tamron will continue to regard automotive lenses for sensing as
an area of focus, and aim to cultivate new customers in Europe
and the United States, where it enjoys a large market share.

Value Creation Initiatives
The reduction of traffic accidents is an important challenge for society to provide safety
and peace of mind in people’s lives. Through products that utilize its strength in highresolution sensing technologies, Tamron helps solve this social issue. By providing
automotive lenses for sensing, which are needed for the advanced control that
achieves ADAS, we will strive to develop industry and make further improvements
to safety.
Automotive lenses

Tamron Integrated Report 2023

36

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Strategies by Segment

MedicalTOPICS

Segment Characteristics

Initiatives Aimed at Creating the Next Field of Business•

MarketCharacteristics••

Related Social Issues•

As our products are involved with people’s lives, high quality and reliability are paramountTime to market is very long, when reliability assessments and other requirements following adevelopment span lasting around three years. However, as the product lifecycle is also very long,
we can easily formulate long-term business plan.

In the medical device market, there has been an uptick
in research and development into quantitative
assessment, such as tumor follow-ups, determinationof tumor margins, and the assessment of tissue perfusion.
To respond to these needs, Tamron will delve deeper

Financial pressure due to rising global health care costs
In medical procedures such as diagnosis, examination and surgery, prices of medical equipment
related to self-diagnosis and minimally invasive procedures* are skyrocketing

into existing visualization technologies to capture
images with greater clarity and depth while also
working to innovate technologies that will broaden
the scope of visualization and accelerate thedevelopment of elemental technologies.

* Minimally invasive procedures are medical procedures that take a reduced (less invasive) toll on a patient’s body.

Market Situation•

TrendsRelated Social Issues•

With the development of advanced healthcare technologies spanning various fields from low andnon-invasive procedures to AI-based diagnosis, robotics, gene treatment, regenerative medicine
and immunotherapy, we are at a turning point of potential innovations bringing improvements
to patients’ quality of life

Other Businesses
2022 Results and 2023 Strategies

Average annual growth rate of the medical device and healthcare market is 4.5% (forecast up
to 2030)▲

The market for compact digital camera lenses and video lenses
continued to shrink, leading to a decline in sales.
Growth in drone lenses slowed, reflecting that growth of theconsumer drone market has run its course. While the market

2022 Results and 2023 Strategies▲▲

2022 Results

The market showed signs of recovery from the effects of the
COVID-19 pandemic. Considering this, and in anticipation of
medium- to long-term growth, Tamron has implemented new
products focused on advanced health care and created atechnology road map. Moreover, as a result of developing
business with new customers and achieving a steady businessexpansion, net sales doubled compared with 2021 levels,
amounting to 280 million yen.

▲2023 Strategies

We will continue to develop and propose products thatleverage Tamron’s strengths in spectroscopy and fluorescence,and strive to secure new products and strengthen ties withexisting customers. As an optical integrator consistently

2022 Resultsfor industrial drones showed an expansionary trend, sales
declined due to the elimination of existing products, alongwith their corresponding lenses, and lack of progress inbringing new models to market.

2023 Strategies

In compact digital camera lenses, no new models will be
introduced, but in camcorder lenses, we plan to introduce
products for professional/semi-professional video applications
to the market and secure net sales that will be down slightly
from 2022.

In the market for drone lenses, we aim to maintain andexpand the scale of sales in industrial applications.

supporting the evolution of the medical field, Tamron will aim
to create economic value and social value as it pursues new
business development.

Value Creation Initiatives
Amid growing interest in people’s healthy lifespans, Tamron is researching technologies to visualize tumors, nerves andcells that cannot be seen with the naked eye with greater clarity and depth, with the aim of developing advanced
medical devices capable of accurately diagnosing and analyzing affected areas through minimally invasive procedures.
Tamron will continue to work on innovations to optical technologies so that it can contribute to improved patient qualityof life (QoL).

37

Tamron Integrated Report 2023

Tamron Integrated Report 2023

38

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Financial Strategy

The Tamron Group will balance ensuring a robust financial structure with highcapital efficiency, and follow a basic policy of strategically allocating management
resources to improve corporate value through business strategy.

The Tamron Group pursues management that maintains an awareness of capital costs and places anemphasis on capital efficiency. In our mid-term management plan, we have set the goal of raising
ROE to at least 9%, exceeding the cost of capital (approx. 7%), and have undertaken various
initiatives with this in mind.
ROIC far exceeded WACC, and ROE improved

2020

Strategically Allocating Management Resources by Balancing Robust Financial
Structure with High Capital Efficiency

ROE
3.9%

(1) Robust financial structure(3) R&D investment

We have implemented future-oriented R&D and capital
investment for sustained growth while making preparations forflexible strategic investments (including M&A and alliances,etc.)
and considering risk tolerance. Under these conditions, we aim
to have at least two-thirds of our total assets comprised ofowned capital and ensure sufficient liquidity on hand of two or
three months. We have developed a financial structure thatmaintains financial health with a D/E ratio of 0.1x or less.

As a global optical manufacturer, investment in R&D is essential
to maintain and improve high-level technologies, as well as tocontribute to social needs and produce innovation from along-term perspective.
Over the three-year period from 2021 to 2023, we place tomake R&D investments worth around 16 billion yen,representing an increase of about two billion yen over theprevious three years from 2018 to 2020. On a fiscal year basis,
up to 2015 these investments amounted to around 5% of net
sales, but this has gradually been raised to around 8% of net sales.

(2) Capital investment
We will actively pursue capital investment that contributes toimproved corporate value. In addition to investment in newmodels and high-precision equipment, we are investing
automation, streamlining, energy-saving production equipment,
and other systems to boost productivity and improve business
operations.
Over the three-year period from 2021 to 2023, we plan tomake cumulative capital investments worth around 10 billion
yen. This represents an increase of roughly two billion yen in
cumulative investments over the preceding three-year period
from 2018 to 2020 as we step up investments in anticipation of
the medium and long term.

2022
ROIC
5.2%

Cost of capital
7.0%

WACC
6.7%

ROE
14.8%

Cost of capital
7.3%

ROIC
12.4%

WACC
7.1%

Initiatives to Raise ROE
ROE＝(composition)

Profitability

Asset
Efficiency

Financial
Leverage

Net Income

Net Sales

Total Assets

Net Sales

Total Assets

Net Assets

Improved profitability

Improved asset efficiency

Enhancing shareholder return andexecuting capital policy(4) Shareholder return and capital policy
We will steadily link growth investment to profit growth, work
to increase earnings per share (EPS) as the allocation of profits
based on business performance, and position the continuationof stable shareholder return as our basic policy.
In addition, in light of developments such as market
conditions, financial status and capital efficiency, we will also
implement capital policy including the acquisition of treasury
shares on a flexible basis.

Main Initiatives∙ Reduced development andproduction costs∙ Reduced operational costs∙ Gross profit margin: 38.0% ⇒43.5%Results(2020⇒2022)∙ SG&A expense ratio : 30.6% ⇒26.1%∙ Improved non-operating profit/loss,
reduced effective rate of duty

∙ Improved asset turnover ratio∙ Improved ROA∙ Improved ROIC

∙ Continuing to provide stableshareholder return based on profits∙ Execution of flexible capital policy∙ Asset turnover ratio: 0.8 times ⇒0.9 times∙ ROA: 5.9% ⇒ 16.1%∙ ROIC: 5.2%⇒12.4%【2020】∙ Acquisition of treasury shares (as apercentage of total shares outstanding:18.87%, acquisition amount: 8.9 billionyen)【2021】∙ Cancelled treasury shares (as apercentage of the total number of shares
outstanding before the cancellation: 3.66%)【2022】∙ Record annual dividend: 120 yen

Capital Investment (Million yen)
2018–2020Three-year total:

7.9

billion yen

Total from 2021
to 2023: approx.

10 billion yen

Approx.
2 billion yen
more than the
2018–2020 period

4,000 *1

R&D Expenses (Million yen)
2018–2020Three-year total:

14.3

Total from 2021
to 2023: approx.

■ R&D expenses
R&D expenses on
net sales

5,398

Approx.
2 billion yen
more than the
2018–2020 period■ Dividend
Dividend Payout Ratio

5,500

120*2

3,218

56.3%
8.7%

8.5%
7.9%

1,890

2021

2022

2023

（Plan ）

*1 Excluding amount invested in new factory

39

Tamron Integrated Report 2023

2021

2022

Improving Corporate Value through Both Business Strategy and Financial Strategy

Continuation of the stable
return of profits

16 billion yen

billion yen

5,028

Dividend (Yen)2023（Plan ）

68

82
33.0%

60
35.8% 32.8%

50

2018

2020

2019

120

Business Strategy

Financial Strategy

Analyze, evaluate and determine the business portfolio

Analyze and evaluate finances,and determine an optimal capital structure∙ Improve profitability through the selection andconcentration of businesses∙ Revise and reduce operational costs∙ Obtain new growth engines by pursuing existing
businesses in depth and expanding into adjacent fieldsof business∙ Beef up capital investment and engage in M&A activities∙ Secure funding for growth investment and strategic
investment∙ After taking risk tolerance into consideration, maintaina robust financial structure and optimize the level ofcash and deposits∙ Achieve stable shareholder return based on profits∙ Execute a flexible capital policy

30.0% 30.0%

2021

2022

2023
（Plan）*2 Includes commemorative dividend of 5 yen

Improving Corporate Value
Strike a balance between growth potential and efficiency to achieve a corporate structure
capable of sustained growth
Tamron Integrated Report 2023

40

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Human Rights Initiatives

Financial Strategy

Tamron will endeavor to conduct its management and activities in consistent harmony
with the international community in accordance with its human rights policy.

Related SDGs

Strategic Investment
In the Vision23 Mid-Term Management Plan, Tamron aims
to strengthen its core technological capabilities and create
new businesses, and plans an increase in R&D expenses by
2 billion yen compared with the 2018-2020 period of theprevious Mid-Term Management Plan, amounting to 16 billion
yen. We also plan 10 billion yen in capital investment, a 2
billion yen increase over this same period, and will pursue
growth-oriented and strategic investments to ensuresustainable growth in the medium and long term.
As a part of this approach, Tamron has decided toconstruct a new factory in Vietnam. This capital investment
is intended to lay the groundwork for mid- to long-termbusiness expansion. At the same time, taking geopoliticalrisks and other factors into account, we will build acomponent supply system across the entire supply chain,strengthen our ability to control costs, and further enhance
our Groupwide production structure.
Tamron currently maintains a production system spanning
three regions around the world, and with the improvements
made in Vietnam, we will work to boost production
capacity, optimize allocations and ensure greater flexibility.
Looking to the next Mid-Term Management Plan
starting in 2024, toward 2030 beyond that, and to our
vision of “becoming a company that is respected andtruly needed by society,” we will continue to executestrategic investments in an effort achieve sustainable
Groupwide growth.

The Tamron’s corporate mission reads: “Tamron creates
emotion and reassurance through its mastery of light,
contributing to the realization of a fulfilling society.” Accordingly,
Tamron has signed the United Nations Global Compact andsupports the Ten Principles of the United Nations Global
Compact as a company that operates globally. Based on its
awareness of the importance of respecting human rights insupply chains, Tamron has defined the promotion of CSR
procurement which includes respect for human rights as one of its
key CSR issues and has since been implementing related initiatives.
The UN Guiding Principles on Business and Human Rights(UNGP) clarify corporations’ responsibilities regarding respectfor human rights. In recent years, corporate respect for humanrights is becoming increasingly significant in their efforts toensure business continuity as well.
In view of its conventional activities and the social environment,
its Board of Directors established the Tamron Human Rights
Policy at a board meeting in April 2023.
Tamron will strive to ensure that this policy is observed in thebusiness activities of the Group and encourage its suppliers
and other business partners to carry out actions that respecthuman rights.

Tamron Human Rights Policy (summary)Establishment of a new factory

In anticipation of sustainable growth, further strengthen the
production system of the entire Group

Purpose of theconstruction

Formulation of a Human Rights Policy Statement

Respond to medium-to long-term business expansion
Enhance steady supply system including supply chains and competitiveness of cost

1. Scope of application

6. Correction

2. Commitment to respect of human rights

7. Stakeholder engagement

3. Human rights issues that Tamron regards as important

8. Information disclosure

4. Governance to fulfill Tamronʼs responsibility to respect

9. Raising awareness and education
10. Process for formulating and revising

human rights

Overview of the new factoryName

For the full text of the Tamron Human Rights Policy, visit the TAMRONʼs website.
https://www.tamron.com/global/sustainability/social/human_rights.html

Tamron Vietnam Thang Long Factory (tentative name)

Investment

Approximately 4 billion yen

Schedule

Date of Construction Start: October 2023 (forecast) Start of Operation: January 2025 (forecast)Land area

Approximately 25,000m2

Tamron Group production system<Vietnam Factory>＜New Vietnam Factory＞
・ Products： Photographic
lenses, Automotive
lenses, Surveillance
lenses・Thang Long 3 Industrial Park・ Lens Processing,Metal Processing,
Molding, Assembling・ Established in 2012, Operation
Startedin Jul. 2013
・ Employees: Approx. 1,400
・ Products: Photographic lenses,
Surveillance lenses
・ Noi Bai Industrial Park

Conduct Human Rights Due Diligence
In accordance with the Tamron Human Rights Policy, Tamron will
implement human rights due diligence as a series of processes
for identifying, preventing and correcting the negative impact of<China-Foshan Factory>
・ Lens Processing, Metal Processing, Molding,
Assembling

・ Development department established in 2016
・ Employees: Approx. 1,900 (include temporary

lenses, Surveillance lenses, DSC/VC*
lenses, Drone lenses* Digital Still Camera/ Video Camera

P

Head Office

Noi Bai International
AirportFoshan, China

Ha Noi41

Tamron Integrated Report 2023

D

Commitment
under the Policy

Assessment of
impacts on humanrightsFormulation of ahuman rights policy
statement

Identification, analysis andassessment of adverse
impact on human rights

Implementation of
preventive and corrective
measures

Remedial
measures

Implementation of preventive
and corrective measures
addressing matters with anapparent or latent negative
impact on human rights

Establishment ofgrievancemechanism<Aomori Factory>
・ Lens processing, GM Lens Processing,

Vietnamitself and its suppliers’ on human rights in an effort to correct orprevent any negative impact on human rights.

Diagram of the human rights due diligence process

employee)

・ Products: Photographic lenses, Automotive

AomoriVinh Phucthe Human Rights Policy

5. Human rights due diligence

Molding, Assembling・ Employees: Approx. 290(include temporary
employee)
・ Products: Photographic lenses,
Surveillance lenses,
Medical devices,
Test platesA

External disclosure

Implementation ofmonitoring

Regular publication of the
progress of initiatives to share
information with external
stakeholders

Implementation of themonitoring of the effectivenessof the measures addressing thematters with a negative impact
on human rights

C
Tamron Integrated Report 2023

42

Management
Strategy

Introduction

Individual
Strategies

Corporate
Governance

Data

Corporate Governance

Basic Policy

System Overview

Based on its new corporate mission to "create emotion andreassurance through its mastery of light, contributing to therealization of a fulfilling society," Tamron aims to build good
relationships with all stakeholders to achieve sustainablegrowth and improve corporate value. In support of those goals,
we have adopted the basic approach of ensuring fair andtransparent management practices while developing a highly
effective corporate governance system that seeks to improve thespeed and efficiency of decision making and business execution.

Board of Directors Effectiveness Assessment

Tamron is a company with corporate auditors and includes a
Board of Directors that functions as a body to make important
decisions and supervise the execution of operations, as well asan Audit & Supervisory Board as an auditing body that is
independent of the Board of Directors.
Tamron also appoints multiple independent outside directors
possessing a wealth of knowledge, expertise and independence andhas set up a Nominating Committee and Compensation Committee
as advisory bodies to enhance supervisory functions. To the Board of
Directors, Tamron appoints ten directors (four of whom are outside
directors), including one foreign director and two female directors, aswell as four Audit & Supervisory Board Members (three of whom areoutside Audit & Supervisory Board Members).

Compliance with the Corporate Governance CodeThrough the continual improvements to our corporate governancesystem, we implemented all of the principles found in the
Corporate Governance Code prescribed by the Tokyo Stock

Exchange. We have also established Corporate Governance
Guidelines that summarize our approach to corporate governance.
The guidelines are available on the Tamron website.

To self-assess the overall effectiveness of the Board of Directors,
each year Tamron makes revisions to pertinent questions basedon external changes such as corporate governance revisions andTamron's own governance measures, surveys all directors andAudit & Supervisory Board Members by way of a questionnaire,
and accepts individual opinions as needed.

Major Initiatives to Enhance Corporate Governance and Progress on Improvements
Category

2016

Election/dismissal

・ Beganeffectivenessassessment byconducting aquestionnaire
among officers

Other

Management supervision function

Election/dismissal

Board of Directors:

Audit & Supervisory Board:

10 members

4 members（3 outside auditors ）Consultation
Female: 2
Foreign national: 1
Audit

Component ratio

Component ratio

1;
25.0%

4;
40.0%

3;
75.0%

Audit

Nominating Committee:

Compensation Committee:(3 independent outside
directors)(3 independent outside
directors)

5 members（4 independent outside directors）

Reply

Chairman

Chairman(independent outside
director)(independent outside
director)

6;
60.0%

ReportElection/Supervision

Business execution function

President & CEO
Accounting
Auditor

Coordination

Internal Audit &Supervision Board

Management Meeting

Audit
Audit

● Board of Directors

Meetings of the Board of Directors are held once amonth, in principle, attended by all Directors andAudit & Supervisory Board Members, for reviewing
the execution of duties by the Directors and deciding
on important issues as set forth in the basic
policy of the company and the Companies Act.

● Audit & Supervisory Board

Meeting once a month in principle, the Audit &Supervisory Board audits the process of decision
making by the Board of Directors and the executionof duties by Directors, by attending the Board of
Directors meetings and checking approval
documents.

● Nominating Committee andCompensation Committee

To enhance the independence and objectiveness ofBoard of Directors functions concerning thenomination, appointment and dismissal andcompensation of directors, we have established a
Nominating Committee and Compensation
Committee, each of which are chaired by anoutside director and whose membership comprises
a majority of independent outside directors.

43

Tamron Integrated Report 2023

5 members

Each department/subsidiaries● Management Meetings

Tamron has established management
meetings attended by directors andfull-time Audit & Supervisory Board
Members to discuss and consider
issues related to management andthe execution of duties, and toquickly respond to the changing
management environment.

● CSR Committee
With the aim of fulfilling Tamron ʼ scorporate social responsibility andcontributing to the development of asustainable society, the CSR Committee,
whose members include full-time
directors, full-time Audit & Supervisory
Board Members and executive officers,
meets five times a year in principle.
The committee makes decisions on anddeliberates over basic matters, policies
and important targets concerning
CSR and promotion of the integrated
management system, and also manages
the progress of important targets.

CSR Committee
Risk Management Committee
Information Management Committee
Compliance Committee● Risk Management Committee

With the aim of designating risk management policies, systems and methods ofoperation, preventing or systematically mitigating risks in the short-, medium- andlong-terms and implementing related measures, the Risk Management Committee,
whose members include full-time directors, full-time Audit & Supervisory Board
Members and executive officers, meets twice a year in principle. The committee
makes decisions on and deliberates over basic matters and policies for thepromotion of risk management.

● Information Management Committee

With the aim of managing various information in the Tamron Group andsupervising management matters, the Information Management Committee,
whose members include the President & CEO, the director in charge of information
management and executive officers, meets once a year in principle. The committee
decides on, deliberates over, reports and supervises various measures aimed atstrengthening management, including basic matters and policies for the promotionof information management.

● Compliance Committee

With the aim of ensuring legal compliance in the execution of business andensuring behavioral practices that are consistent with social ethics, the Compliance
Committee, whose members include the President & CEO, director in charge ofcompliance and executive officers, meets once a year in principle. The committee
deliberates over basic compliance promotion matters.

2017

2018

2019

2020

・ Reduced thenumber of・ Considered the size
・ Established adirectors by
and composition ofNominating
three
the Board ofCommittee and・ Considered
Officer・
Appointed a
Directors
Compensation
the size andComposition
female director
・ Established
Committee
composition
・ Revised theandstandards
・ Appointed aof the Board
compensation
Compensation
concerning theof Directors
foreignsystem andindependence ofnational as a
introduced aoutside officers
directorstockcompensation
schemeGeneral Meeting of Shareholders
Election/dismissal

Based on the results of the assessment, the Board of Directors
deliberates over analysis, assessment and improvement
measures, makes revisions to matters including the composition,size, compensation system and operating methods of the Board.

・ Reduced thenumber of
directors by
one

2021

2022

2023

・ Having independent
・ Increase ofoutside directors accountone outside
・Reduced thefor at least a third of eachdirector
number ofcommittee
・ Changes todirectors by one
the structures ・ Appointment of an* The percentage
individual with corporateof theof independent
management experience
Nomination
outside directors
at another company asCommittee
on the board
an outside director
andincreased to 40%
Compensation ・ Review of director
compensation indicesCommittee

・ Reduced the・ Increased
number of Board
opportunities
of Directors
for medium-to- ・ Revision to・ Considered・ Consideration
meetings
long-termcompliance with
the Corporateof response toCompliedwithall・
discussion
items of theMissionthe revised
principles of the
Corporate
・ Improved
・ Formulation
Corporate
Corporate
Governancemethods
andofalong-term
Governance CodeGovernance
Code not yet in ・ Establishedtiming forvisionCodecomplianceprovidingCorporatematerials in
Governanceadvance
Guidelines

・ Shortening of Director
・Start new structureterms of office to one
for sustainabilityyear
related committees
・ Disclosure of skills matrix
・Improvements to・ Compliance with all
the details of directprinciples of thereports made torevised Corporate
the Board ofGovernance CodeDirectors by the・ Revisions to theInternal Audit
corporate governanceSupervision Board
guidelines

Officer Compensation
Compensation for executive directors at Tamron comprises “basic
compensation,” which is a form of fixed compensation, “short-term
incentive compensation,” which is a kind of performance-linked
monetary compensation based on factors such as business performancein a single fiscal year, and “medium-to-long-term incentive
compensation,” as a kind of performance-linked stock-based
compensation. Our basic policy for maintaining and increasing incentives

is to keep an appropriate ratio of performance-based compensationand to use the medium- and long-term incentive compensation aperformance and stock-based compensation, to clarify the link between
business performance, stock prices, and director compensation andfurther heighten awareness of the importance of contributing to theimprovement of business performance and the increase of corporate
value over the medium and long term.

Compensation System
Types of Compensation
Fixed

Variable

Percentage

Policy and Process for Determining the Method of Calculation

Basic Compensation(Monetary compensation)

Approx. 60%

Short-term Incentive
Compensation(Monetary compensation)

Approx. 20%

In light of each personʼs position, level of contribution, levels in the industry or othercompanies of the same size and business performance, etc., compensation is determinedby the Board of Directors following a review by the Compensation Committee chaired by
an external director.

Medium-to-long Term Incentive
Compensation(Stock-based compensation)

Approx. 20%• Points are granted based to each personʼs position, business performance, and so on,in accordance with the Share Issuance Regulations established by the Board of
Directors. Stocks in Tamron are issued through a trust based on the number of points.
• The level of Mid-Term Management Plan achievement such as ROE is also assessed.

Assessment Indicators, etc.
Assessment Weighting
Assessment Item

Company-wide
performance

Assessment Indicator

President

Consolidated net sales

20%

Consolidated operating
income50%

Performance ofassignedbusiness units

Assessment of businessperformance

Individual
assessment

Assessment of individual
strategic goals

70%

Directors assigned
to business units

Other directors

10%

15%

25%

30%
70%

−

* Assessment of business performance in a single fiscal year

35%

70%
25%

30%

Assessment
Item

Companywide
performance

Corporate
Value

Assessment
Indicator

Assessment
WeightingAll directors

Consolidated
net sales

20%

Consolidated
operating income

40%

ROE

10%

TSR

30%

* Assessment of medium-term business performance

Tamron Integrated Report 2023

44

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

Data

Management Structure (As of March 29, 2023)
Board of Directors
President & CEO

Corporate Vice PresidentManaging Director

Managing Director

Managing Director

Managing Director

Shiro Ajisaka

Shogo Sakuraba

Hiroshi Otsuka

Shenghai Zhang

Makoto Otani

Tomohide Okayasu

Member of Nominating
Committee and Member ofCompensation Committee

Optical Design & Engineering R&D
Center,R&D Technology Center
Risk Management

Corporate Strategy Unit
Administrative Management Unit
CSR
Information Management

Global Production (Aomori
Factory, China Factory, Vietnam
Factory)
Mold & Tooling Technology Center

OEM Component Business Unit
Industrial Optics Business Unit
Quality Control & Assurance
Supervision Unit

Imaging Products Business Unit
Procurement Management Unit
Compliance

April 1978
April 1990
January 2005

April 1981
January 2005

June 2006
April 2010

January 1997
April 2010

April 1984
April 2012

December 2000 Joined Tamron Co., Ltd.
April 2012
Executive Officer, General Manager, ProductDevelopment Management & Administration Unit,
Tamron Co., Ltd.
January 2014
Executive Officer, General Manager, Imaging Products
Business Unit, Tamron Co., Ltd.
April 2016
Senior Executive Officer, Tamron Co., Ltd.
April 2017
Senior Executive Officer, Tamron Co., Ltd. Vice Chairman,
TAMRON USA, INC.
March 2018
Director, Tamron Co., Ltd.
March 2023
Managing Director, Tamron Co., Ltd. (current post)

January 2008

March 2010
March 2013
March 2014
March 2015
March 2016

Joined Tamron Co., Ltd.
President, TAMRON Europe GmbH.
Executive Officer, General Manager,
Overseas Sales & Marketing Unit, Tamron Co., Ltd.
Senior Executive Officer, General Manager,
Overseas Imaging Products Business Unit,
Tamron Co., Ltd.
Director, Tamron Co., Ltd.
Managing Director, Tamron Co., Ltd.
Senior Managing Director, Tamron Co., Ltd.
Corporate Vice President, Tamron Co., Ltd.
President & CEO, Tamron Co., Ltd. (current post)

January 2008

March 2014
March 2016

Joined Tamron Co., Ltd.
Executive Officer, General Manager,
Optical Design & Engineering R&D Unit,
Tamron Co., Ltd.
Senior Executive Officer, General Manager,
Optical Design & Engineering R&D Unit,
Tamron Co., Ltd.
Director, Tamron Co., Ltd.
Corporate Vice President, Tamron Co., Ltd.
(current post)

Director (Outside Director,
Independent Officer)

Yuichi Sato

Harumi Katagiri

Chairperson of Nominating
Committee
and member of Compensation
Committee

Member of Nominating Committee
and chairperson of Compensation
Committee
Supervisory officer at MORI TRUSTSogo Reit, Inc.
Outside director at Japan Asia
Investment Co., Ltd.

January 1980
April 1983
April 1994
April 2010
April 2013
April 2014
March 2018

Joined Tokyo Shibaura Electric Co., Ltd.
(now Toshiba Corporation)
Assistant, School of Engineering, Tokyo Instituteof Technology
Assistant Professor, Faculty of Engineering,
Saitama University
Professor, Faculty of Engineering,
Saitama University
Dean, Faculty of Engineering, Saitama University
Dean, Graduate School of Science andEngineering, Saitama University
Executive Director, Vice President,
Saitama University National University Corporation
Outside Director, Tamron Co., Ltd. (current post)

April 2015

March 2016
March 2020

Director (Outside Director,
Independent Officer)

April 1978

January 2015

November 1993 Joined Asahi & Co. (now KPMG AZSA LLC)
April 1998
Registered as a certified public accountant in Japan
March 2000
Joined Century Audit Corporation(now Ernst & Young ShinNihon LLC)
July 2009
Member of Ernst & Young Shin Nihon LLC
July 2017
Opened the Harumi Katagiri certified public
accountants' office (current post)
March 2018
Outside Director, Tamron Co., Ltd. (current post)
June 2019
Supervisory Director, Mori Trust Sogo Reit, Inc.
(current post)
June 2019
Outside Director, Japan Asia Investment Company,
Limited (current post)

Joined Tamron Co., Ltd.
Executive Officer, General Manager, Technology
Development Strategic Planning Board,
General Manager,
Legal & IP Management Board, Tamron Co., Ltd.
Executive Officer, General Manager, Corporate
Business Planning & Administration Board,
Tamron Co., Ltd.
Senior Executive Officer, General Manager,
Corporate Business Planning & Administration
Board, Tamron Co., Ltd.
Director, Tamron Co., Ltd.
Managing Director, Tamron Co., Ltd. (current post)

Director (Outside, Independent Officer)

Eriko Ishii
Member of Nominating Committee
and member of Compensation
Committee Attorney (Partner of Shin
Saiwai Law Office) Outside Director,
Sophia Holdings Co., Ltd.
Supervisory Director, Canadian Solar
Infrastructure Fund, Inc. Outside
Corporate Auditor, ALMAD, INC.
Outside Director, Sun Asterisk Inc.
Executive Director of Ichigo Hotel REIT
Investment Corporation
October 2004
October 2004
February 2011

Registered as an attorney (current post)
Joined Mori Hamada & Matsumoto LPC
Registered as an attorney in the State of New York(current post)
July 2016
Partner of Shin Saiwai Law Office (current post)
June 2018
Outside director of Sophia Holdings Co., Ltd. (current post)
December 2018 Outside Corporate Auditor of SmartDrive Inc. (current post)
May 2019
Supervisory Director of Canadian Solar Infrastructure
Fund, Inc. (current post)
June 2019
Outside Corporate Auditor of ALMAD, INC. (current post)
March 2021
Outside Director, Tamron Co., Ltd. (current post)
March 2021
Outside Director of Sun Asterisk Inc. (current post)
October 2022 Executive Director of Ichigo Hotel REIT Investment
Corporation (current post)

April 2014
March 2016
March 2020

Joined Tamron Co., Ltd.
Executive Officer, Tamron Co., Ltd., Managing
Director,
TAMRON OPTICAL (FOSHAN) CO., LTD.
Senior Executive Officer, Tamron Co., Ltd., Managing
Director, TAMRON OPTICAL (FOSHAN) CO., LTD.
Director, Tamron Co., Ltd.
Managing Director, Tamron Co., Ltd. (current post)

March 2015
April 2016
March 2018
March 2023

Director (Outside, Independent
Officer)

Fumio Suzuki

April 1973
April 1994
April 1998
April 1999
June 1999
June 2003
June 2007
June 2008
June 2015
March 2022

Joined NIHON KOHDEN CORPORATION
Director and President, Nihon Kohden America, Inc.
General Manager of Corporate Planning Department,
NIHON KOHDEN CORPORATION
General Manager of Human Resources Department,
NIHON KOHDEN CORPORATION
Director, NIHON KOHDEN CORPORATIONManaging Director, NIHON KOHDEN CORPORATION
Corporate Director and Executive Operating Officer,
NIHON KOHDEN CORPORATION
Representative Director and President,
NIHON KOHDEN CORPORATION
Chairman and CEO, NIHON KOHDEN CORPORATION
Outside Director, Tamron Co., Ltd. (current post)

Joined Tamron Co., Ltd.
Executive Officer, General Manager, OEM Component
Business Unit, Tamron Co., Ltd.
Executive Officer, General Manager, Industrial Optics
Business Unit, Tamron Co., Ltd.
Senior Executive Officer, General Manager, Industrial
Optics Business Unit, Tamron Co., Ltd.
Director, Tamron Co., Ltd.
Managing Director, Tamron Co., Ltd. (current post)

Activities of Outside Officer
Classification

Name

Activities in 2022 (Attendance Rate)

Director

Yuichi
Sato

Attended all 18 meetings of the Board of Directors held during
the fiscal year. He has fulfilled his role properly, making
appropriate remarks based on his wealth of experience as an
executive director and vice president of Saitama University,
especially in regard to research and development.

Director

Harumi
Katagiri

Attended all 18 meetings of the Board of Directors held during
the fiscal year. She has fulfilled her role properly, making
appropriate remarks based on her professional knowledge andexperience as a certified public accountant, especially in regard to
finance and accounting.

Director

Eriko
Ishii

Attended all 18 meetings of the Board of Directors held during
the fiscal year. She has fulfilled her role properly, making
appropriate remarks based on her professional knowledge andexperience as a lawyer and her knowledge and experience as adirector and corporate auditor of other companies, especially inregard to corporate legal affairs in general and M&A.

Director

Fumio
SuzukiHe attended all 14 Board of Directors meetings held since taking
office. He has fulfilled his role properly, making appropriate
remarks based on his experience in corporate management andhis wide knowledge and experience in the healthcare industry.

Audit &
Supervisory
Board
Members

Takashi
Hirayama

He attended all 18 Board of Directors meetings and all 15 Audit& Supervisory Board meetings held during the fiscal year. He has
made appropriate remarks based on his wealth of businessexperience at financial institutions and the knowledge andexperience of auditors and audit departments of other companies.

MasayaNara

He attended all 18 Board of Directors meetings and all 15 Audit& Supervisory Board meetings held during the fiscal year. He has
made appropriate remarks based on his professional knowledge
and experience as a lawyer and his knowledge and experience as
directors and corporate auditors of other companies.

Audit & Supervisory Board Members
Full-Time Audit & Supervisory Board
Members

Takahiro Yamaguchi
Member of Nominating Committee
and member ofCompensation Committee

March 1982
April 2015
April 2022
March 2023

Joined Tamron Co., Ltd.
General Manager, Internal Audit & Supervision 		
Board, Tamron Co., Ltd.
Meister, Internal Audit & Supervision Board, TamronCo., Ltd.
Audit & Supervisory Board Members, Tamron Co.,
Ltd. (current post)

Full-Time Audit & Supervisory
Board Members(Outside Audit & Supervisory
Board Members, Independent
Officer)

Takashi Hirayama

April 1980
June 2005
January 2008
June 2010
May 2011

October 2015
March 201945

Joined the Saitama Bank, Ltd.
(the present Saitama Resona Bank, Ltd.)
Executive Officer, Saitama Resona Bank, Ltd.
Managing Executive Officer in charge offinance and IPO preparation of AGS Corporation
Corporate Auditor of AGS Business
Computer Corporation
General Manager of Information Processing
Division, Managing Executive Officer of
AGS Corporation
Managing Executive Officer in charge of
operational audits of AGS Corporation
Full-Time Audit & Supervisory Board Members of 		
Tamron Co., Ltd. (current post)

Audit & Supervisory Board
Members(Outside Audit & Supervisory Board
Members, Independent Officer)

Audit & Supervisory Board
Members(Outside Audit & Supervisory Board
Members, Independent Officer)

Masaya Nara

Takashi Ueda

Attorney (Partner of Torikai Law
Office)Outside Audit & Supervisory Board
Members of RISO KAGAKUCORPORATION
Outside Director of Kumagai Gumi
Co., Ltd.

September 1990 Joined Yasuda Trust & Banking Co., Ltd.
(the present Mizuho Trust & Banking Co., Ltd.)
April 2009
Executive officer, General Manager of
Investment Planning Division of Mizuho
Trust & Banking Co., Ltd.
June 2011
Full-time Audit & Supervisory Board Members of 		Mizuho Trust & Banking Co., Ltd.
April 2014
Senior managing director of Mizuho
Realty Co., Ltd.
January 2017
Registered as an attorney
March 2019
Independent Audit & Supervisory Board Members of
Tamron Co., Ltd. (current post)
January 2020
Partner of Torikai Law Office (current post)
June 2021
Outside Audit & Supervisory Board Members of RISOKAGAKU CORPORATION (current post)
June 2022
Outside Director of Kumagai Gumi Co., Ltd. (current post)

April 1981
May 1997
June 2003
April 2008
June 2009
June 2011
June 2017

April 2020
June 2020
May 2021
June 2021

March 2023

Tamron Integrated Report 2023

Joined the Saitama Bank, Ltd (the present Saitama Resona Bank, Limited)
General Manager of Isogo Branch of Asahi Bank, Ltd. (the present 		
Resona Bank, Limited and Saitama Resona Bank, Limited)
General Manager of Tokyo Sales Department 3 of Resona Bank, Limited
General Manager of Saitama Sales Department of Saitama Resona Bank, 		Limited
Executive Officer in charge of the Tokyo metropolitan area (Block) of 		Resona Bank, Limited
Senior Managing Director of Resona Card Co., Ltd.
Executive Officer In charge of Administration General Affairs & 		
Human Resources Dept., Administrative Management Unit and 		Overseas Business Department of FUJISASH CO.,LTD.
Executive Officer in charge of Group Internal Control and Audit 		
Department of FUJISASH CO.,LTD.
Director of FUJISASH CO.,LTD. (current post)
Executive Officer in charge of Group Internal Control and Business 		
Administrations Dept., Business Management Unit of FUJISASH CO.,LTD.
Managing Executive Officer In charge of Group Internal Control and 		Business Administrations Dept., Business Management Unit of FUJISASH 		
CO.,LTD. (current post)
Outside Audit & Supervisory Board Members, Tamron Co., Ltd. (current post)

Audit &
Supervisory
Board
Members* Outside Audit & Supervisory Board Members Takashi Ueda was appointed in March 2023, and his activities are
therefore not listed.

Tamron Integrated Report 2023

46

Introduction

Management
Strategy

Individual
Strategies

Corporate
Governance

2021

Data

Financial and Non-Financial Highlights
Financial Highlights
Million yen

2012

2013

2014

2015

2016

2017

2018

2019

2020

Status of Profit and Loss
Net sales
Gross profit
Operating income
EBITDA
Ordinary income
Profit attributable to owners of parent

64,353
20,545
5,503
8,685
5,377
3,894

68,452
20,941
5,233
8,674
5,196
3,197

73,621
23,568
6,076
9,888
6,200
3,846

71,946
22,642
4,554
8,209
5,140
4,048

59,90318,901
2,361
5,726
2,855
1,482

60,496
20,596
4,246
7,808
4,100
2,838

61,815
21,905
5,424
8,588
5,877
4,330

63,28524,229
6,982
9,649
7,403
5,330

48,375
18,370
3,575
6,378
3,750
1,958

57,53923,207
7,408
10,433
7,531
5,173

63,44527,623
11,03813,995
11,496
8,350

Financial Position
Net assets
Total assets
Cash and deposits
Inventories
Liabilities with interests

40,80558,058
10,822
12,363
5,475

47,08764,704
14,297
11,055
5,714

51,99569,906
15,915
10,536
4,098

49,001
66,035
14,192
12,875
4,035

47,32160,91016,03010,100
4,063

49,94063,86819,431
10,4733,145

50,85264,704
22,438
10,811
2,998

54,53969,29728,384
9,388
2,643

45,77758,19021,4178,604
2,200

52,536
67,06525,797
11,233
2,027

60,57475,55629,94812,998
1,908

Status of Cash Flow
Cash-flows from operating activities
Cash-flows from investing activities
Free cash-flow
Cash-flows from financing activities

3,736(3,824)(88)(2,363)

9,602(6,041)
3,561(1,324)6,208(2,351)
3,856(3,009)6,214(2,552)
3,662(5,219)6,537(2,540)3,997(1,524)

7,661(2,174)
5,487(2,351)

7,523(2,202)
5,321(1,861)

10,925(2,863)
8,062(1,923)

7,554(12,334)(4,780)(2,112)

8,660(3,780)4,879(1,250)9,232(3,865)5,367(2,044)141.86 yen
1,486.52 yen
50 yen35.2%

116.48 yen
1,715.37 yen
50 yen42.9%

140.14 yen
1,894.14 yen
50 yen35.7%

153.98 yen
1,890.45 yen
60 yen39.0%

57.19 yen
1,825.62 yen
55 yen96.2%

109.51 yen
1,926.65 yen
50 yen45.7%

167.80 yen
1,976.05 yen
60 yen35.8%

207.13 yen
2,119.33 yen
68 yen32.8%

88.83 yen
2,195.71 yen
50 yen56.3%

248.14 yen
2,519.93 yen
82 yen33.0%

400.03 yen
2,899.24 yen
120 yen
30.0%

Major Indicators
Gross profit on net sales
Operating Income Margin
EBITDA Margin
Ordinary Income Margin
ROE
ROA
ROIC
Shareholders' equity ratio
D/E Ratio (times)
Inventory turnover (months)
PER（times）
PBR（times）

31.9%
8.6%
13.5%
8.4%
10.1%
9.8%
8.3%
70.3%
0.13
2.3
17.2
1.6

30.6%
7.6%
12.7%
7.6%
7.3%
8.5%
6.9%
72.8%
0.12
1.9
21.9
1.5

32.0%
8.3%
13.4%
8.4%
7.8%
9.2%
7.6%
74.4%
0.08
1.7
17.0
1.3

31.5%
6.3%
11.4%
7.1%
8.0%
7.6%
6.0%
74.2%
0.08
2.1
14.6
1.2

31.6%
3.9%
9.6%
4.8%
3.1%
4.5%
3.2%
77.7%
0.09
2.0
33.9
1.1

34.0%
7.0%
12.9%
6.8%
5.8%
6.6%
5.6%
78.2%
0.06
2.1
22.1
1.3

35.4%
8.8%
13.9%
9.5%
8.6%
9.1%
7.1%
78.6%
0.06
2.1
9.4
0.8

38.3%
11.0%
15.2%
11.7%
10.1%
11.0%
8.5%
78.7%
0.05
1.8
12.2
1.2

38.0%
7.4%
13.2%
7.8%
3.9%
5.9%
5.2%
78.7%
0.05
2.1
20.6
0.8

40.3%
12.9%
18.1%
13.1%
10.5%
12.0%
9.5%
78.3%
0.04
2.3
11.5
1.1

43.5%
17.4%
22.1%
18.1%
14.8%
16.1%
12.4%
80.2%
0.04
2.5
7.4
1.0

Capital Investment, Depreciation and R&D Expenses
Capital investment
Depreciation
R&D expenses
R&D expenses on net sales

3,656
3,182
3,492
5.4%

6,130
3,440
3,217
4.7%

2,429
3,812
3,699
5.0%

2,478
3,654
4,052
5.6%

2,484
3,365
4,002
6.7%

2,425
3,562
4,111
6.8%

2,047
3,164
4,373
7.1%

3,171
2,666
5,263
8.3%

2,734
2,803
4,687
9.7%

1,890
3,024
5,028
8.7%

3,218
2,957
5,398
8.5%

Per-Share Information
EPS
BPS
Dividend
Dividend Payout Ratio

2022* EBITDA = Operating income + Depreciation

ROE

ROA

EPS (Unit: yen)
16.1%

14.8%

8.6%

10.5%

10.1%

9.1%

2019

2020

167.805.9%

2,899.24

400.03

12.0%

11.0%

3.9%

2018

BPS (Unit: yen)248.14207.13

1,976.05

2,119.33

2,195.71

2018

2019

2020

2,519.93

88.83

2021

2022

2018

2019

2020

2021

2022

2018

2019

2020

2021

2022

2021

2022

Please see our website for consolidated financial result. https://www.tamron.com/global/ir/library/library_02.html

47

Tamron Integrated Report 2023

Tamron Integrated Report 2023

48

Management
Strategy

Introduction

Non-Financial Highlights

Certification Marks

Tamron strives to be a company that limits its impact on the environment and is highly productive,
where a diverse range of human resources can succeed.
CO2 Emissions (t-CO2)

Waste Volume and Recycling Rate (t)■ Head office ■ Aomori Factory ■ Foshan Factory ■ Vietnam Factory■ Head office ■ Aomori Factory ■ Foshan Factory ■ Vietnam Factory
Industrial Waste Recycling Rate (Japan)

43,24740,451

43,26938,881

99.3%
1,946

99.4%

99.2%

1,990

99.3%
1,987

99.3%

2,090

Name

FTSE Russell

FTSE Blossom Japan Sector
Relative Index

SOMPO Asset Management

SOMPO Sustainability Index

2019

2020

2021

2022

2018

2019

2020

2021

2022

In 2022, CO2 emissions were reduced by 10% year on year, due to Tamron’s head
office subscribing to TEPCO’s Green Basic Plan (electricity that involves theissuance of non-fossil fuel certificates) covering 30% of the electricity it uses
starting in May, and Tamron Optical (Foshan) Co., Ltd. in China purchasinghydroelectricity-derived I-RECs. In terms of the achievement rate for Environment
Vision 2050, a 15.1% decrease was achieved, greater than the targeted 6%
decrease compared with 2015 levels. In 2023, Tamron will continue to consider
ways to introduce renewable energies.

Waste volume increased 5% year on year in 2022, and the industrial waste
recycling rate in Japan was 99.3%. Waste volume increased 32% in Japan anddeclined 3% at overseas plants. The increase in domestic waste volume was mainly
due to the temporary generation of waste such as wooden containers, crates andmetal when repairs and layout alterations were made to the Aomori Factory.

Percentage of Female Managerial Staff

Employment Rate for Disabled Persons
2.56%

2.49%

7.0%
5.3%

S&P/JPX Carbon Efficient
Index

Ministry of Economy,
Trade and Industry

2023 Certified Health &Productivity
Management Outstanding
Organizations Recognition(Major Corporation Category)

10.0%

6.1%

Ministry of Health,Labour and Welfare

2.24%

2.23%

2.09%

2020

2021

2022

Kurumin Mark

5.9%

Nihon Keizai Shimbun
2018

2019

2020

2021

2022

The percentage of managerial positions filled by women improved 3
percentage points year over year to 10.0%. We will continue to promote
diversity going forward, including improvements to this metric.
* In Japan, section manager and higher

2018

2019

In 2022, the rate was 2.09%.
Tamron will continue to develop a comfortable working environment for adiverse range of people.

Nikkei Smart WorkManagement
Survey: 2.5 Stars

12.8

Nikkei SDGs Management
Survey: 3.5 stars

Operating Income per Employee (Million yen)
14.1

13.1

Overview of Recognition

FTSE Blossom Japan Sector Relative Index reflects the performanceof Japanese corporations that demonstrate strong Environmental,
Social and Governance (ESG) practices relative to their sector.
Tamron is included as one of the companies making up the index.

The SOMPO Sustainability Index is a index consisting of about
300 stocks with excellent ESG. Tamron has been selected forinvestment by the fund since 2012.

An index that focuses on the state of environmental information
disclosure and carbon ef­ficiency levels to determine weightings
among the companies that make up the index. Tamron is included
as one of the companies making up the index.

The program aims to promote health and productivity management
by selecting enterprises engaged in outstanding health andproductivity management and introducing them to investors
that emphasize improvements to corporate value from a longterm perspective. Tamron has been certified as a Health & Productivity
Management Outstanding Organization in the Major Corporation
category since 2020.

The Kurumin Mark is a program under the Act on Advancementof Measures to Support Raising Next-Generation Children tocertify childcare supporting companies that have passed a review
that includes items on the development of an environment
conducive to taking childcare leave and support for balancing
work with childcare. Tamron has been certi­fied for the Kurumin
Mark since 2015.

The survey examines companies in four areas, namely “humanresources,” “innovation,” “market development,” as well as the“management fundamentals” required for the sustainable
development of a company. Tamron received a 2.5-star rating in 2022.

* JapanNikkei Keizai Shimbun

Net Sales per Employee (Million yen)

Data

1,623

S&P Dow Jones Indices,Japan Exchange Group2018

Corporate
Governance

External Recognition

Financial and Non-Financial Highlights

43,492

Individual
Strategies

14.8

The SDGs Management Survey assesses companies across four
categories, namely SDGs strategy and economic value, social
value, environmental value and governance, and examines how
this translates into enhanced corporate value throughcontributions to problem solving and enhanced governance.
Tamron received a 3.5-star rating in 2022.

2.6

11.1

1.8

Saitama Prefecture

Sai-no-Kuni Plant

1.4
1.1

The scheme designates plants exhibiting exceptional technical andenvironmental achievements as partners in the development of aricher Saitama Prefecture. Tamron has been designated since 2007.

0.8

2018

2019

2020

2021

2022

Continuing the trend from 2021, net sales per employee continued to rise in
2022, amounting to 14.8 million yen.
* Calculated based on the average number of employees at the end of the previous
period and end of the period under review.

2018

2019

2020

2021

2022

In a continuation of the significant improvements made in 2021, operating
income per employee increased by more than 40% in 2022, reflecting a significant
increase in productivity.
Tamron will continue pursuing reforms to shift to a profit-oriented corporate
structure.

Saitama City Leading-edge

Companies Certification

The scheme to certify companies developing research anddevelopment-oriented production exhibiting superior creativity
and innovation in Saitama City. Tamron has been certifi­edsince 2009.

* Calculated based on the average number of employees at the end of the previous
period and end of the period under review.

Please see our website. https://www.tamron.com/global/sustainability/

49

Tamron Integrated Report 2023

Tamron Integrated Report 2023

50

Introduction

Company Profile / Shareholder Information As of December 31, 2022

Head Office

Securities Firm

1385 Hasunuma, Minuma-ku, Saitama-shi, Saitama
337-8556, JAPAN

1.89%

Founded:

Other
Corporation

Tamron USA, Inc.dba
Tamron Americas

Individuals
and Others

Tamron (Russia)
LLC.

39.88%

Treasury
SharesIncorporated: October 27, 1952

CapitalForeign
Shareholders

6,923 million yen

24.36%TAMRONOPTICAL(FOSHAN)CO., LTD

Status of Major Shareholders

4,448 (consolidated), 945 (non-consolidated)

Male

FemaleEuropeAmerica

46%

54%

2%

1%
Japan

22%
Asia

75%
Male / Female
Ratio

Regional
Composition

Stock Overview
Number of shares issued:

25,000,000 shares

Number of shares per unit: 100 shares
Number of shareholders:

4,243 shareholders

Stock Exchange
Prime Market, Tokyo Stock Exchange
Securities Code: 7740

Balance Date
December 31

TAMRON France EURL.
Percentage ofshares held

Sony Group Corporation

3,129

14.80

The Master Trust Bank ofJapan, Ltd. (trust account)

2,352

11.12

Aomori Factory

GOLDMAN SACHSINTERNATIONAL

2,247

10.63

（Hirosaki Site）（Namioka Site）（Owani Site）

Custody Bank of Japan, Ltd.
(trust account)

1,548

7.32

Saitama Resona Bank
Limited

1,002

4.74

Nippon Life Insurance
Company670

3.16

ARGO GRAPHICS Inc.

541

2.55

JPMorgan Securities Japan
Co., Ltd.

372

1.76

NAGAWA CO., LTD.

356

1.68

Tamron Business Partner
Stockholding Association

283

1.34

TAMRON OPTICAL（VIETNAM）CO., LTD.

● Head Office

Tamron Integrated Report 2023

● R&D Centers2● Production Sites

3● Sales Sites

9

Head OfficeOsaka Sales Office

Shareholding ratio is calculated by deducting the number of treasury shares(3,861thousand shares) from total shares issued.

Manager of the Register of Shareholders
Sumitomo Mitsui Trust Bank, Limited

Main Functions and Characteristics
Head Office• Optical design, mechanical design, electronics and software design, etc.
• Mold manufacturing, plastic injection molding

R&D Centers• Research and development into the improvement of base technologies• Research and development related to product development in new fields

1-4-1, Marunouchi, Chiyoda-ku, Tokyo
Production
Sites

Sales Sites

51

TAMRON INDIA
PRIVATE LIMITED

Number ofshares held(Thousandsof shares)

Shareholders

Breakdown of Employees (consolidated)

TAMRON China

TAMRON INDUSTRIES(HONG KONG) LIMITED

15.45%

Employees

Data

TAMRON Europe GmbH.

Financial
Institution

11.70%

November 1, 1950

Corporate
GovernanceTo ensure that it can respond flexibly to the needs of customers, Tamron has developed a global
structure engaged in everything from R&D to planning, design, manufacturing, sales and customer
support.

6.72%

Founded / Incorporated

Individual
Strategies

Group Network

Distribution of Shares by Owner

Tamron Co., Ltd.

Management
Strategy• Lens processing, plastic molding, metal processing, assembly, etc.
• Tamron’s plants in Japan (Aomori Prefecture) function as mother plants providing manufacturing
technologies to Tamron’s large-scale production sites at the Foshan Factory in China and the Vietnam Factory.
• This production structure spread across three sites around the world allows Tamron to handle various
manufacturing tasks from small lot production to mass production.
• In addition to seven overseas sales companies, Tamron has developed networks with sales centers anddistributors in various regions.
• We also provide after-sales support through this network.

Tamron Integrated Report 2023

52

Tamron Co., Ltd.
Corporate Strategy Unit
1385 Hasunuma, Minuma-ku, Saitama-city, Saitama 337-8556, JAPAN
Tel. +81-48-637-8363
Fax. +81-48-683-8282
E-mail: e-report@tamron.co.jp
Website: https://www.tamron.com/global/
Published August 2023