〈English〉

TAMURA
CORPORATIONREPORT 2018
CORPORATE PROFILE / CSR REPORT DIGEST

Biltrite Tamura
The 11th Mid-term Plan 2016-2018

GROWINGCreating Tamura Group’s Value

Creating ValueThe Tamura Group aims to increase corporate value bycontributing to society through our business activities andis making continuous efforts to create new values towards
solving society’s problems.

T A M U R A
CORPORATIONR E P O R T

2 0 1 8C O N T E N T S

Globalenvironment
Local
community

Customer

Creating Tamura Group’s Value………… 01
TOP MESSAGE… ………………………… 03
HIGHLIGHT… …………………………… 05

Shareholder/investor

MISSION STATEMENTCORPORATE PROFILE
Genealogy of Product Development…… 07

MISSION

Social issues closely
related to our businesses
Global environmental issues
Natural disaster preparedness
Energy/resource issues
Declining birth rate and theaging population
Community development

Recognizing the missions to be
fulfilled by the Tamura GroupOUR BUSINESS FIELDElectronic
Components

Information
Equipment

Electronic
Chemicals/
Fa Systems

01

TAMURA CORPORATION REPORT 2 0 1 8

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

VISION1
2

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

3

The Tamura Group evaluates its employees with fairness
and highly rates excellent performance and exceptional
productivity.

4
5

The Tamura Group is a responsible member of the global community and respects the laws and customs of the countries inwhich it conducts business activities.

The management of the Tamura Group is based on businesses
related to the requirements of the global electronics industry.

The Tamura Group strives to protect the global environment,
conserve natural resources and promote recycling.

GUIDELINEThe 11th Mid-term Plan

Biltrite Tamura
GROWING
The 11th medium-term management plan
ending FY2018 was launched in April 2016.
〉
〉
〉P.03
■ Drawing a path to abundant growth■ Manufacturing excellent products■ Creating sound management■ Establishing the best global operation

1. We attach great importance to partnership.
2.We attach great importance to nurturing a spirit of creativity.
3.We attach great importance to individuality.
4. We attach great importance to social responsibility.
◆ Tamura Group Code of Conduct

1. Ensuring Customer Trust and Satisfaction
2. Acquiring the Trust of All Shareholders and Stakeholders in our Business Activities
3. Respecting Basic Human Rights
4. Safe and Healthy Workplace Environment
5. Free Competition and Fair Trade
6. Prohibition Against Insider Trading
7. Prohibition Against Inappropriate Entertainment or Gifts
8. Prohibition of Inappropriate Transactions with and Inappropriate PoliticalContributions to Public Bodies
9. Compliance with Laws and Regulations Regarding Import and Export Controls for Security
10. Creation, Protection and Use of Intellectual Property Rights and Know-How
11. Prohibition of Participation in Antisocial Behavior
12. Prohibition Against Competition or Conflict of Interest
13. Appropriate and Timely Disclosure of Information
14. Appropriate Protection and Handling of Information (Corporate Information, Private
Information, etc.)
15. Preservation of Company Assets
16. Respect for the Global Environment
17. Cooperation with the International Community and Co-existence with Local
Communities

Business
partner

Realizing asustainable
society
Tamura Group’s
sustainable
development

Our Business■ Electronic Components… …………… 09■ Electronic Chemicals/FA Systems… … 11
■ Information Equipment… …………… 13
Research and development… ………… 14
Product Lineup…………………………… 15

CSR REPORT DIGEST

CSR Activities
Goals and Results of CSR Activities… …… 17
Social Performance Report
CSR Activity Topics in FY2017… ………… 19
Environmental Performance Report
Environmental Topics in FY2017… ……… 21

CORPORATE DATA
Corporate Information… ……………… 23
Global Network…………………………… 25
Editorial Policy
This report will be published as “TAMURA CORPO­RATION REPORT 2018” to serve as an introduction
to the Tamura Group. It is a compilation of
Tamura’s“CORPORATE PROFILE,” which introduces
the group’s overview and business activities, and“CSR REPORT DIGEST,” a digest of its CSR activities.
A detailed report of CSR activities is available on the“CSR Activities” page of the Tamura Corporation website. The “Environmental Report Guidelines (FY2012
Edition)” of the Ministryof the Environmentof Japan, and the“ISO26000” GuidanceStandard werereferred to when “CSR
Activities” was edited.

Period covered
April 1, 2017 to March 31, 2018
(Includes some activities in or after April 2018)

Employee

Publication dateAugust 2018
(Previous report: August 2017 next report: due in August 2019)

Contact information
CSR Promotion Div.
TEL: +81-3-3978-5293, FAX: +81-3-3978-2760
E-mail: csr@tamura-ss.co.jp
Website: http://www.tamura-ss.co.jp/en/

02

TOP MESSAGE

Aiming to realize healthy growth accompanied byprofit, we are devoting ourselves to managementthat focuses on the environment, society, andgovernance.
In FY2017, the Company achieved a record
high in operating profits for the second
straight year.

During FY2017, which was the second year of the midterm management plan “ Biltrite Tamura GROWING ”, theCompany’s three core business sectors all increased their sales
and the consolidated operating profits reached a record high forthe second straight year. As the Company’s accounts are stilldeveloping favorably, the annual dividend, which comprises interim and term-end dividends, has been decided to be 9 yen per
share, which is the same as last year. We will continue to workon various business strategies toward further growth, aiming at
realizing an annual dividend of 10 yen in FY2018, the final yearof the mid-term management plan.
In addition to the steady growth in the sales of automotive solder
paste/solder resist and the reflow system in the electronic chemical component implementation business, this increase in profit wasalso attributable to a sharp rise in the sales of solder resists for flexible PCBs used in smartphones during the second half of the year.

Acceleration of the “Local development &local approval” system on a global scale andreinforcement of marketing power beyond
divisional boundaries

Last year, as the priority issues for FY2017, I announced
the policies of “Acceleration of the local development & local
approval system” and “Reinforcement of marketing led by theMarketing and Development Management Division.”
In efforts toward the optimization of global operation, with regard
to business deployment in Asia, the production of some products inthe electronic chemicals business sector and in the electronic parts
business sector is to be shifted from China to Thailand and from
China to Myanmar and Bangladesh, respectively. For this purpose,
efforts to reinforce production capability as well as locally recruit
supervisors are now underway. We are endeavoring to shift our involvement in China from simply a production base to a developmentbase for the Company. Therefore, our efforts are now being madeto develop human resources for R&D and market development andto establish the “Local development & local approval” system. With
regard to business deployment in Europe, in order to promote sales
activities in European countries, we will set up a new base for theelectronic chemical business sector in Germany and establish an integrated system for development, production, and sales.
Furthermore, the Marketing and Development Management
Division that was established two years ago is now working on
supporting the development of new products through trial and error
while receiving experts’ advice on the market and competitors’ situations. By correctly identifying what is unavailable in the market
today and what the market really demands, we will continue ourendeavors to raise the success rate of new product development.

Declaring its support for
the U.N. Global Compact
The Tamura Group declares to
its stakeholders that it will continue to support the U.N. Global
Compact’s ten principles in theareas of human rights, labor,
the environment, and anti-corruption, and enact a set of corevalues in those four areas.

Assuming social responsibility as a global
enterprise by working on solving various
world problems

The Company was among the first electronic parts manufacturers that signed the UN Global Compact and has been reflecting andwill continue to reflect the SDGs (Sustainable Development Goals
adopted by the United Nations in 2015) in its corporate strategy.
While the Company has been promoting its CSR management,
which is aimed at fulfilling the Company’s social responsibility
and the resolution of various social problems, disseminating CSR
awareness among the overseas affiliated companies has been an
issue that must be addressed. In FY2017, with the objective ofdisseminating CSR awareness among all employees, efforts weremade to translate the teaching materials into English and Chinese
and to emphasize compliance education given in the local language. We consider that a long succession of such down-to-earth
activities is important for the dissemination of CSR awareness.
Furthermore, to promote “Local development & local approval”
on a global scale, product quality must also be satisfied in a self-contained manner. We are working to raise the level of quality awarenessof local employees to be the same as that of the employees in Japan.
As a consequence, products whose quality control is self-containedat each overseas base are expected to reach such a level that “Tamura
products are consistent in quality wherever they are produced”.

In FY2017, effectiveness of environmental
investment became tangible and sales of“Premier Eco-design Products” were firm

Among the 17 SDGs, we especially focus attention on “Goal
7: Affordable and Clean Energy”, “Goal 12: Responsible
Consumption and Production”, and “Goal 13: Climate Action” as
the fields in which the Company should contribute.
In the past several years, reducing electric consumption has been amajor issue in environmental activity. In FY2017, under a strategy toproactively carry out environmental investment in addition to the conventional energy-saving activities, we updated our air-conditioning

Biltrite Tamura
GROWING
The 11th Mid-term Plan 2016-2018■ Drawing a path to abundant growth■ Manufacturing excellent products■ Creating sound management■ Establishing the best global operation

03

TAMURA CORPORATION REPORT 2 0 1 8

systems and facilitated the “visualization” of electric power consumption. As a result, we have succeeded in achieving the reduction
target. Furthermore, Sakado Factory (currently under reconstruction)
has obtained the “Net Zero Energy Building (ZEB)” certification.
Further effects of environmental investment are expected to emerge.
With regard to the expanding sales of Premier Eco-design
Products, the products for eco-cars have continued to be firm
and the actual sales figure reached 11%, exceeding the target.
Another new promising field is that of “super luminosity LEDs
(Power LEDs)”. Because of technological difficulties, conversion to LEDs has not been facilitated in applications requiringhigh power, such as large lighthouses and spotlights. However,
the Company’s technological competence has been collected for
productization, and verification tests were begun at Kushirosaki
Lighthouse in February this year. Conversion to LEDs in thisfield can contribute to solving multiple social problems by realizing a large amount of energy-saving, in view of the large power
requirement there, through the reduction of waste and risks as
a result of reduced replacement frequency, for example. We areproud that we can contribute to the achievement of the SDGs.

Welcoming a bright centennial anniversary as
a company with sound and prosperous growth

Regarding the Company’s governance, with the aim of further
securing diversity in Executive Management and viewpoints ofthird parties, the number of outside board members was increased
from two to three, including the Company’s first female officer.
In addition to the above, efforts are being made to hold “Small
Meetings” to facilitate proactive disclosure of IR information.
The external evaluation of the Company’s CSR management
has also been improved. In the past, our rankings in the Nikkei
Environmental Management Survey and in the Toyo Keizai CSR
ranking, which are well-known indicators for CSR activity, werenothing to boast about. However, as a result of efforts to disseminate CSR awareness and to promote various measures, our orderin the ranking has risen sharply.
Because of the strategies that have gotten on the right trackin both financial and nonfinancial aspects, we now strongly feelthat we will be able, in 2024, which is only six years away, towelcome a bright centennial anniversary as a company that has
achieved sound and prosperous growth. We will continue tomake efforts to promote quality and sound management, aiming
to become the “Only One” company to be truly needed in society.
July 2018

President
Tamura Corporation

Naoki Tamura

TAMURA CORPORATION REPORT 2 0 1 804

HIGHLIGHTHIGHLIGHT
Key component for high output of the motor: Boosting reactor for eco-friendly cars

Supporting the dissemination of environmentallyfriendly vehicles and their safe and pleasant drive
As part of the key growth strategies for the mid-term, the Tamura Group has been emphasizing
efforts related to in-vehicle products in each business sector. In the medium to long term, we
expect large growth in the demands for in-vehicle products in an environment that will be
Share of in-vehicle products within the Tamura Groupmarked by the full-scale dissemination of hybrid
vehicles, plug-in hybrid vehicles, and electric ve19%
12%
hicles, further development in the use of electric
equipment along with automated driving andimproved safety devices, and global demand for
FY2010FY2017
vehicles, especially from developing countries.

For the dissemination of environmentally friendly vehicles such as hybrid vehicles, plug-in hybrid vehicles, electric vehicles, and fuel cell electric vehicles, the vehicles
must be equipped with not only fuel-efficient measures
but also good driving and acceleration performances,making higher output of the motor a key factor.
For that purpose, the boost converter to increase thebattery voltage becomes necessary. The reactor serves
as the core of this converter. In this regard, in addition tosmall size, low power loss, low cost, and low noise, the reactor must be highly reliable as it is mounted in the enThe number of in-vehicle reactors produced by Tamura Group ( In-house forecast )Production volume at new factory (planned)

Production volume at current factory

Aiming to increase production volume by 2.5
times or more from 2016 to 2024
Demand will become full-blown in 2019.
Start of production at the new factorygine compartment as a powersystem component.
To handle the increasing de­mand, the Company will open
a new factory for in-vehicle pro‑ducts and is aiming to achieve,in the centennial anniversary
FY2024, a production volume
that is at least 2.5 times that of
FY2016.

■New factory of Wakayanagi Tamura Corporation
To meet the future increase in the demand for in-vehicle
electronic components such as boosting reactors, reconstruction and facility investment are now in progress at thefactory of Wakayanagi Tamura Corporation (Kurihara-shi,
Miyagi Prefecture). By estab­lishing a new production base
dedicated to in-vehicle electronic components, the risk
management system of the Tamura Group is also expected
to be reinforced.
The new factory is scheduled to be completed at the endof July 2018.

(Current production capacity)

Electronic Chemicals / FA systems

Electronic Components
Boosting reactor
For the boosting unit ofenvironmentally friendly
vehicles●Hybrid vehicles●Electric vehicles●Fuel cell electric vehicles

Coil

For an increased numberof comfort equipment●Car audio●Car navigation system

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

In-house forecast

Tamura’s invehicle-related
business

Current sensor
An increase in the demand
for sensors along withdiversification of thecontrol mechanism

Entry into in-vehicle product market
2009 ~For various kinds of electric components
Applicable to●large current●high withstand voltage
High reliability●Crack resistance●Heat resistance●Humidity resistanceAn increase in demand for electric components in
new market needs●Automated driving & safety device

Gallium-oxide power
semiconductor

05

TAMURA CORPORATION REPORT 2 0 1 82019 ~

Solder paste & solder resist

Future development
Power semiconductor of the
future●E xceeds GaN/SiC High withstandvoltage & low power loss●I nnovative contributions to energy-saving and weight-saving

Market will become full-blown.

Soldering system

Increasing demand for
mounting in-vehicle
substrates and modules

Prevention of solder cracks: High-heat-resistance solder alloy TLF-287 Series
Along with lower fuel consumption & higher functionality of vehicles, the tendency towards electronic control& downsizing/weight-saving of in-vehicle components
has also been accelerated and the requirements related totheir environment of use have been becoming increasingly severe.
The TLF-287 Series comprises the solder paste productsthat have been developed for use with in-vehicle-related
electronic components. Through the introduction of a
new solder alloy usable for substrates in the engine compartment that prevented solder cracks in the cold-heatcycle test under the condition of -40 °C ⇔ +125 °C, crack

occurrence has been reduced by 40% compared with theconventional solder alloy and the joint reliability has been
increased.

SAC305 alloy(Conventional
product)#287 alloy

Crack-40 °C ⇔ 125 °C After 3000 cycles

TAMURA CORPORATION REPORT 2 0 1 806

CORPORATE PROFILE

Genealogy of Product Development

Tamura’s technology is nurtured by history, unequaled to this day

HISTORY

PRODUCTS

CORE TECHNOLOGYElectronic Components
Power solutions

Switching transformers, Reactors, Coils

1956〜(High-frequency products)

Cut core
Magnetic
material

since

Highfrequency
reactor

1970〜

Choke coils

1924

1985〜

Current
sensors

Power transformers, Reactors, Coils(Low-frequency products)■ Dust core material development and mass-production technology■Electromagnetic field, heat, structural analysis (simulation) technology■ High-efficiency, low-noise power supply technology■ Large current transformer coil winding technology■ Environmental technology

Specialized large transformers and reactors■ Adaptive technology for highly reliable standards (JAXA and MIL standards, etc.)

Current sensors■ Design technology for special specifications (water cooling, waterproof, high pressure)■ Mass production technology for large productsPiezoelectric ceramics

1924〜

Manufacture andsale of radio andgramophone■ Material development and process technology

1956〜Power supply
systemAC adaptors, Battery chargers
Power modules
Industrial power supplies
Gate driver modules

1994〜
Piezoelectric transformer■ Element design technology and analysis technology■ Technology for controlling piezoelectric elements

LED/LD application and IoT solutions and semiconductor devices■ LED packaging technology■ Growth technology of single

crystal substrates■ Waterproofing technology■ High-quality epitaxial growth■ Thermal design and analysis

Piezoelectric ceramic products

technology

technology■ High efficiency High-power■ Optical design and analysis

LED manufacturing

technology■ Lighting design technology■ High-efficiency reflection

1987〜

2008〜

Interlocking pushbuttons
for vending machines

1930〜
In-house
production of
Biltrite seriestransformer

07

TAMURA CORPORATION REPORT 2 0 1 8

Electronic Chemicals/FA Systems

1956〜

Solderite flux

1957〜

Transformers
The company that would eventually
become the Tamura Group came into being
in 1924, one year before the start of radio
broadcasting in Japan, as the Tamura RadioStore. Its main business was radio repair andthe manufacture of original radios. In theprocess of pursuing superior sound, the firmcame to handle the manufacture of the key
component, the transformer. Its reputation as
the “Tamura of transformers” created a foundation on which to expand its businesses,
including various electronic components
related to transformers; flux and soldering
materials that were born out of the pursuit ofquality joining materials for the manufactureof transformers; soldering systems; and evenbroadcast audio equipment and communication systems, based on achievements in the
manufacture of transformers for broadcasting
and communication.
Currently, Tamura Corporation conducts
business operations in three areas: electronic
components, electronic chemical mounting,and information equipment, to develop andsupply products that meet the needs of newmarkets, such as the environment and energy
markets.

LED

LED-related products
Vending machine products
IoT-related products (Human sensors/Vitals sensors)

Solder paste

1961〜
Resist ink

Solder paste & post-flux
Self Assembling Material
Solder resists (for rigid PCBs and flexible PCBs)
OSP (pre-flux)
White reflective material, black absorbing material, Transparent insulation material

1968〜

Automatic solderingsystemReflow soldering system
Wave soldering system
Spray fluxer and other peripheral devices■ Optical single-crystal technology

processing technology■ Sensing technology■ Wireless technology■ Data processing technology

Electronic mounting process, PCB material and semiconductor mounting material■Unified, collaborative product development for both material and equipment■ Resin design and synthesis technology (photosensitive resin, thermo-

setting resin, thermoplastic resin)■ Metal powder production technology■ Soldering technology■ Photosetting technology■ Thermosetting technology■ Environmental technology (technologies compliant with Pb-free,halogen-free requirements)■ Reflow heating technology■ Soldering technology■ Wave soldering technology■ Heat control technology■ (Nitrogen) Atmosphere control technology

Information Equipment

1961〜
Audio mixing console forbroadcast use

Audio mixing console for broadcast use
Sound editor and other equipment

Information equipment■ Audio processing technology

1962〜

Wireless microphone

Wireless intercom
Wireless microphone■ Digital signal processing technology■ Acoustic technology■ High-frequency technology■ Radio technology

1976〜Transmission
monitoring device

Communication network equipment
Security-related equipment
OEM products■ High-density mounting technology■ Surround-sound technology

TAMURA CORPORATION REPORT 2 0 1 808CORPORATE PROFILE

Our Business

Deploying products that contribute to anenergy-saving society in the global market

Development, manufacture, and marketing of materials, components, and finished products,
including transformers, reactors, LEDs, piezoelectric ceramics, and power supplies, contributing
to the supply of products in a wide range of markets, from household appliances to industrial
devices, medical instruments, and aerospace equipment.

Electronic Components
uct

Prod

Developing a PFC reactor for in-vehicle
battery chargers for next-generation eco-cars

This PFC reactor for in-vehicle battery chargers is used in the PFC
circuit (power factor improvement circuit) of a battery charger that ismounted in an eco-car (plug-in hybrid vehicle, electric car). In contrast
to the conventional product that uses two toroidal-type reactors, thisproduct has a 2-in-1 configuration in which a single reactor capable offunctioning equally to two toroidal-type reactors is used. In addition to
the use of core material developed by
Tamura, a flat wire is adopted for the coilinstead of the conventional round wire toincrease heat radiation performance. As
a result, approximately 40% downsizing
is achieved. We continue to contributeto the development of environmentallyfriendly next-generation vehicles.

neer
Voice of engi

Automotive B.U.
Electronic Components B.S.

Tsutomu
HamadaBy feeding back customers’ strong desire
for downsizing to product development,
we have achieved differentiation from othercompanies and succeeded in developing
high value-added products. We will continue our efforts to create high value-added
products.

◆ Products

Reactors

Coils

Reactors are core components forvoltage control and noise removal
for power conditioners, air conditioners, and the like. They contribute toenergy saving and clean energy.

Coils are components for removing
noise or improving energy efficiency in various electronic devices.
They contribute to performance
improvement of electronic devices
and energy savings.

Automotive reactors
The reactors are key components for
optimal voltage control in hybrid andelectric cars. Our reactors ensure not
only eco-friendly but also highly reliable and safe driving.

Large transformers andreactors
In large-scale wind or solar power
generation systems and the like, largetransformers and reactors are corecomponents—the former are usedfor voltage conversion, and the latter are for voltage control and noise
removal. They contribute to energy
saving and clean energy.

LED power supply
LED power supply for outdoor use
such as facility illumination and road
illumination. Designed to achieve
high efficiency and high power factor
and equipped with multi-stage optical modulation function, the productcan realize the industry’s top level ofenergy saving illumination.

Vending machine related
products

LED lighting for special
applications

We have developed major components such as the item selection
button, which holds over 90% of
the market share, the price display
unit, and LED lighting. Buttons witha built-in price display have alreadybecome the trend for vending
machines.

LED lighting for special applications,such as inside lighting type signboards and refrigeration display
cases that utilize optical engineering design technology. This producthas started to be used in showcases
manufactured overseas, mainly Asia.

Power LED
A super luminosity LED with brightness equivalent to a 1 kW halogen
lamp. This product has been realized
thanks to the Company’s original
electronics-packaging technology
and heat radiation design. A verification test at a lighthouse has begun.

Changes in net sales(Millions of yen)
60,00055,61357,73854,602

51,94955,87450,00040,00030,000Transformers and coils foraerospace use
As the only domestic manufacturer thathas obtained certification from Japan
Aerospace Exploration Agency (JAXA)
for the standards of transformers andreactors for power systems, we develop,
produce, and supply transformer andcoil products for onboard use on satellites and their launching vehicles.

09

TAMURA CORPORATION REPORT 2 0 1 8

Current sensors

Power modules

Gate driver module

AC adaptors

Piezoelectric transformers

In order to make effective useof natural energy, it is necessary
to monitor electrical current inequipment with a high degree of
accuracy. Our product line, whichis broad in terms of current range
and accuracy range, contributes
to creation, storage, and saving ofenergy.

High-efficiency DC converter functions are packaged. e modules allow
you to easily design high-performance power supply (high-efficiency,
low-standby-power, quiet, and small)best suited for your product.

The product for driving high-powerswitching semiconductors used ininverters, etc. Suitable for both IGBTand SiC-MOSFET because of its low
noise characteristics. This product cancontribute to drastic simplification ofequipment design.

Our AC adaptors supply stable power
to optical network units (ONU). Theirhigh resistance to exogenous noisedue to thunder and other causes
provide support for communication
lifelines such as the Internet andtelephones.

The use of the resonance phenomenon of piezoelectric ceramics
allows efficient generation of highvoltage. Our products are used forhigh-voltage power supply for laser
printers, copiers, ion generators,
etc.

20,00010,000
0

2013

2014

2015

2016

2017 (FY)*Net sales for external customers(excludes internal net sales between different businesses).

TAMURA CORPORATION REPORT 2 0 1 8

10CORPORATE PROFILE

Our Business

Exploring soldering technology withenvironmentally friendly materials and devices

Through the development, production, and sales of the materials for printed-wiring boards,
materials to solder components, and the soldering equipment for printed-wiring boards, alongwith our high-reliability product line, we contribute to the reduction of environmental load andto the growth of the electronics industry.

Electronic Chemicals/FA Systems
uct

Prod

Development of solder paste
for dispensing applicable to laser soldering

The demand has been high for solder paste applicable to local
heating to “minimize heat damage on a substrate” and for “pinpoint soldering of minute parts”, etc. In the future, this type ofdemand is expected to increase because of the miniaturization of
surface-mounted components and the increased use of wearable
devices. This product prevents “thermal sagging” and the “creationof solder balls” through theuse of non-halogen-type
flux and has realized quality
soldering in the quick-heatsoldering and 3D mountingthat use a laser or a pulse
heater.

neer
Voice of engi
Assembly Material B.U.
Electronic Chemicals &FA System B.S.

TakemiMizunoS

older balls that are created when molten
solder is left on a substrate without being
aggregated can cause electrical short circuits.
By studying solder melting behavior fromevery aspect and conducting appropriate
formulation design, we have succeeded inminimizing solder balls and have been able todevelop a product that can fulfill our customers’ requests.

◆ Products

Flux

Solder paste

Self assembling material

Solder resist

Reflow soldering systems

Selective soldering systems

Flux is the keystone of Tamura’smaterials development. By chemically removing oxide film from themetal surface to be soldered, flux
ensures superior wettability andspreadability for solderable metals.

Used as joining material for surface mounting, solder paste isprepared by mixing solder powder
and a flux. Tamura’s extensive metalcomposition lineup provides compatibility with various applications,such as fine mounting, in-car use,
and micro bump formation.

Self assembling materials simultaneously provide conductivity andreinforcement by means of metal
joining and resin, respectively.
The materials are lead-free/VOCfree and eco-friendly, and realize
low-temperature joining, potentially contributing to CO2 reduction.

The solder resist plays an important role in maintaining insulation
performance by protecting printed
circuit boards (PCBs) from oxidation. Mindful that it serves as theface of PCBs, Tamura is as attentive
to the external appearance as thereliability.

Reflow soldering systems heat PCB-mounted components to melt solder andjoin the components and circuits on the board. In particular, the twin-chamber
type, which uses a dual-lane system to solder substrates in two rows and features
separate controllability of the two lanes, can simultaneously solder two types ofsubstrates, allowing the construction of high-efficiency flexible mounting lines.

Selective soldering systems mount components to be inserted on a PCB that hasgone through a reflow soldering process, and perform soldering, in a solder bath,only on parts of the PCB where the components are inserted. Labor-saving on
production lines is achieved by transforming the entire soldering process into afully automated integrated line.

Changes in net sales(Millions of yen)
30,00025,00022,61424,36524,741

2014

2015

23,56725,37820,00015,000

Solder resists for flexible
PCBs
Halogen-free solder resists for flexible PCBs are available in rich color
variations.

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TAMURA CORPORATION REPORT 2 0 1 8

White reflective material

Black absorbing material

White reflective materials areapplied to the back surface of a
LED PCB or a solar power panel toincrease reflectivity. They are highly
functional halogen-free materials
with high reflectivity and discoloration resistance.

These materials are applied to asurface of a printed circuit board ora film to accentuate LED light. They
can meet design requirements suchas covering and hiding wiring.

Transparent insulationmaterial
Transparent insulation materials areused in the manufacture of touch
panel LCDs used in smartphones,
tablet PCs, and the like. They arehighly flexible and compatible withorganic and inorganic substances
and are available as thin films witha transmittance of 98% or higher.

Selective soldering material
Solder paste for use in partial solder supply by dispensing and rapid-heating
soldering with a laser. Because it can automatize conventional manual soldering
while contributing to achieving high quality, it is drawing attention in the areasof camera modules and in-car components. The development of jet-dispensing
products capable of high-speed three-dimensional soldering is also underway.

10,000
5,000
0

2013

2016

2017

(FY)

*Net sales for external customers(excludes internal net sales between different businesses).

TAMURA CORPORATION REPORT 2 0 1 8

12CORPORATE PROFILE

Our BusinessResearch and development

Contributing to creating a secure, safe, andcomfortable society through broadcasting andcommunication technologies

Starting with gallium oxide substrates and power devices, we
are working on the development of future products that will
help to create a sustainable eco-society for the next generation.

Information Equipment

Gallium oxide power devices
Gallium oxide has drawn attention worldwide as a new semiconductor material for power devices.
Because of its larger band-gap energy than those of silicon carbide (SiC) and gallium nitride (GaN),
gallium oxide can realize power devices that satisfy both low power consumption and high withstandvoltage. Furthermore, because single-crystal growth by the melt growth method is possible, high-quality single-crystal substrates of large diameter can be obtained.
4-inch gallium oxide substrate

Application to next-generation power semiconductorsthat facilitate energy-saving is expected

We will develop new technologies on the basis of the one and only technology that we havedeveloped in the broadcasting and communication field to provide secure and safe ICT products,
with an eye towards further advancement.

Possibility of the

Gallium Oxide◆ Products

NT880

NT660

The development of an innovative power-saving technology
is a global issue. Tamura Corporation, jointly with Novel Crystal
Technology, Inc.*, is working on R&D of gallium oxide, a promising candidate for the semiconductor material of next-generation power devices. When gallium oxide power devices
are put to practical use, they will be expected to contributeto energy-saving in products in the middle to high withstandvoltage power device market, which includes, for example,
general-purpose power supplies, power conditioners for power generation systems using solar/fuel batteries, converters& inverters for motor-driving systems of electric/fuel vehicles
and railroad vehicles, extreme-environment-resistant devices
such as those designed to withstand the space environment,
electric airplanes, and electric power transmission & distribution systems.
*Novel Crystal Technology, Inc. is a venture company that was strategically carved out from
Tamura Corporation and is a technology transfer venture of the National Institute of Information
and Communications Technology (NICT).

NT110

Audio network

NT series—audio mixing consoles for broadcast use
Sound editing and acoustic adjustment equipment for sound transmission in television and radio broadcasting, etc. The
new product NT110 has the same level of safety and operability as the NT series, and incorporates the sound processing
section and the input/output section in its main body for reduced size and weight. Moreover, it can be connected to audio
networks, such as MADI and Dante.

OFDM Digital
wireless microphone
A new A-type wireless microphone that
ensures high sound quality by means of
the uncompressed 24-bit/48 kHz format
and 8-bit ADPCM. It offers good radio
propagation properties unaffected bypulsive noise, and has low latency.

Changes in net sales(Millions of yen)
6,000

5,251

5,000

4,123

4,000
3,000

4,030

4,224

2,940

2,000

TS-LINK
Tamura’s original communication technology TS-LINK can accurately transmit
large amounts of data by using high-efficiency wireless technology. Development
geared toward such applications as the management of movement of a large
number of people in events or commercial facilities, logistics management, andwatching over children and the elderly, is underway.

13

TAMURA CORPORATION REPORT 2 0 1 8

1,000
0

2013

2014

2015

2016

2017

(FY)

*Net sales for external customers(excludes internal net sales between different businesses).

Successful development of ultra-low-power-consumption
Schottky barrier diode and power transistor
In 2017, we succeeded in developing a gallium oxide Schottky barrier diodewith low power consumption. Power consumption was reduced by 40% compared with the SiC Schottky barrier diode currently commercially available on themarket. The Company’s accumulated high-quality gallium oxide crystal growthtechnology and processing technology were combined and a trench structurethat can most effectively utilize the physical properties of gallium oxide material
was introduced.〈Fig. 1〉
Furthermore, for the first time in the world, an operation test of the trenchMOS-type power transistor using a gallium oxide epitaxial film was successfully
demonstrated. When it is put into practical use, it will be able to reduce the power
loss to 1/1,000 compared with the conventional silicon MOSFET devices. Towards
productization, efforts are being made to further improve the low-loss, high withstand voltage performance, and normally-off operation features by refining thedevice construction and the production process.〈Fig. 2〉
We are continuously working on development for the improvement of the performance of diodes and the quality of epitaxial films and single-crystal substrates
so that R&D by power device manufacturers can progress on a full scale.

Anode electrodePassivation
layer
HfO2

Trench structuren- drift layern+ substrate
Cathode electrode〈Fig. 1〉Cross-sectional structure of ultra-low-pow-

er-consumption gallium oxide Schottky
barrier diode with trench structure

Sourcen contact layer

Gate pad

+

SiO2
Gate
HfO2

n- drift layern+ substrate
Drain〈Fig. 2〉Pattern diagram of gallium oxide powertransistor

TAMURA CORPORATION REPORT 2 0 1 8

14CORPORATE PROFILE

Product Lineup

Tamura’s products have been supporting various industries and social infrastructure as “materials,” “components,” and “devices” that range from consumer products, such as automobiles andelectronic equipment, to devices at manufacturing sites and natural-energy-related and aerospace fields. From raw materials to complete systems, Tamura’s technologies have contributed tosafety and comfort as well as energy savings.

Tamura’s Technologies Supporting
Society, Industry, and Everyday LifeAt Train Stations

In Aviation andSpace

Supporting railway operation in the audio-visual
realm by conveying such information as arrival/
departure times

Contributing to society
by providing ultimate
environmental resistancein the form of airplanes,
rockets, and satellites

In convenience stores and other shops
LED light source contributes to energy savingsfor shop sign lighting and showcases.

In Automatic Vending Machines on the Street

Realizing leading-edge functions for display, item
selection, interface with a smartphone, etc.

Electronic
Components
Electronic Chemicals /FA Systems
Information
Equipment

Transformers/Reactors

At Lighthouse

LED electric bulletin board

Achieving energy-saving,extended service life, andimproved maintainability
for the luminous sourceof the lighthouse, which
requires ultra-high brightness and high straightness

Wirelessmicrophone systems

Advertisement LED Lighting

Price display unit

Product selection buttons

LED lighting for showcases

In Broadcast
Stations

Used in equipment foradjusting sound delivered
to audiences, and wireless systems for in-housecommunication

Power LED

Audio mixing console

Digital wireless intercom system

OFDM Digital
wireless microphone

In Eco-Friendly
Cars

Supporting safe, secure,and eco-friendly driving with highly reliable
and efficient parts andmaterials

In Wind and Solar Power Generation

Offering parts and materials that contribute to efficiency improvement in renewable energy generation and DC transmission

Automotive reactors/Coils

Large transformers and reactors
Solder resist

Solder paste

In Smartphones
and Tablet PCs
Current sensors

Self assembling material

In Manufacturing Plants well as devices indispensable for PCB assemblythat contribute to the energy-saving in air conditioners and power conditioners,
At Home Components
and sensors that monitor people’s activities and sleep in combination with air conditioners

Current sensors

Current sensors

Playing active roles as components of robots and machine tools as

White reflective material

15

Employed as materials
that support device evo‑lution to realize multifunctionalizationandmini‑
aturization
Transparent insulation material

Flux

TAMURA CORPORATION REPORT 2 0 1 8

Gate driver module

Reactors

Soldering systems

Power modules

Reactors

Human sensors

Self assembling material

Black absorbing material

TAMURA CORPORATION REPORT 2 0 1 8

16

CSR REPORT DIGEST

CSR Activities

Goals and Results of CSR Activities■ Self-assessment criteria
100% or higher achievement

The Tamura Group is promoting CSR activities in six areas, i.e., “compliance/corporate ethics”, “riskmanagement”, “information management”, “human rights/labor”, “environment/quality”, and “social
contribution”.

Task● Elimination of CSR risk

(General)Compliance/ Corporate
ethicsRiskmanagement● Dissemination of CSR

Humanrights /Labor

Page number indicates the page on which activities are reported in the Tamura Corporation Report 2018.
URL: www.tamura-ss.co.jp/en/csr/index.html
All activities, with some exemptions, are reported.
For information in items marked with an asterisk (*), target values and actual results are reported.

Socialcontribution

17

FY2017 Main Activity Results

Self-assessment● Discussion-based training programin small groups was started using
training materials at overseas bases.

Report page

FY2018 Activity Goals

Page 19
Web:・CSR at Tamura Group● Dissemination of SDGs
● Review of the Tamura Group Code of Conduct● Promotion of education for dissemination of● Raise awareness of the internal reporting● Issuance of an e-mail magazine, in which familiar news, case

Page 19
Web:・Compliance・Employee Relations● Promotion of education for dissemination of● Strengthening of risk

● Periodic/occasional review of business● Global implementation of BCP in individual● Improvement of stockpile at each business site in JapanWeb:
・Risk Management
・Employee Relations● Periodic/occasional review of BCP documents

Web:・Risk Management
・Shareholder and Investor Relations● Reinforcement of information protection system

Page 19
Web:・Business Partner Relations
・Employee Relations*● Development of global human resources

philosophy and the Tamura
Group Code of Conduct● Promotion of compliancewith laws and regulations● Enhancement of complianceeducation

managementtion protection system● Timely and appropriate
disclosure of corporate
information

corporate philosophy and the “Tamura Group
Code of Conduct”● Promotion of compliance education

continuity plan (BCP) documents● Implementation of emergency drills● Reinforcement of information protection

system● Timely and appropriate disclosure of corporate
information on the website

system by means of posters and training● Group training on cartel prevention,
the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcont‑ractors, the Unfair Competition Prevention Act, and information management● Discussion-based training in small groups using
training materials
business segments● Implementation of evacuation drills and safety
confirmation drills at domestic business sites● Enhancement of network security forprevention of cyberattack and information
leakage● Promotion of CSR procurement● Development of global human resources● Global expansion of personnel system●E nrichment of internal employee● Improvement of appropriate working envi-● Overseas training for new employees

education● Establishment of fair andimpartial personnel evaluation
system● Promotion of diversification● Stimulation of internal communications【Quality】● Further increase in customer
satisfaction● Increased green procurement

Environment /Qualitydisseminate CSR to overseas operation bases

CSR Activities● Communication of corporate● Reinforcement of informa‑

Information
management

FY2017 Activity Goal
● Implementation of educational activities toLess than 80% achievement■ Report page* In order to show the association between the Tamura Group's initiatives and the Sustainable Development Goals (SDGs), each area of activity
is indicated by the corresponding SDGs icons.

Area of activity Corresponding SDGs

80–100% achievement

ronment● Continuous provision of overseas training● Enrichment of healthcare● Promotion of safety and sanitation● Execution of the action plan topromote active female participation● Response to conflict minerals issues● Quality improvement awareness-building

activities during Quality Month● Hosting of the Tamura Group Quality Promotion Conference● Update of green procurement standards● Strengthening of the management ofchemical substances in products● Compliance with ISO 9001:2015● Implementation of ISO 9001:2015
education for internal auditors● Implementation of appropriate labor

management (for managerial personnel)-Implementation of labor management training and stress management training-Implementation of multifaceted assessment(360-degree evaluation)● Implementation of stress check and periodic
stress counseling● Introduction of multipurpose leave (volunteer
leave, etc.) and paid leave in hourly units● Hosting of group-wide summer festival● Message sent by officers responsible for quality

on the first day of Quality Month● Hosting of the 11th Tamura Group Quality
Promotion Conference● Design Review Working Seminar started● Update of green procurement standards

studies, etc. of compliance violations are explained in aneasy-to-understand manner● Implementation of corporate philosophy education andindividual performance evaluation training in Myanmar● Timely and appropriate disclosure of corporate informationon the website● Workplace inspection for safety and sanitation,and implementation of traffic safety training sessions● Execution of the action plan to promote active female
participation● Extension of the periods of childcare leave and shorter working hours for childcare● Introduction of the reemployment system for former employees● Promotion of employment of disabled/elderly persons●C ertified as a “Youth Yell Company” (Aizu Tamura Corporation)● Survey of suppliers on their use of conflict minerals● Promotion of conclusion of contracts, etc. in accordance with
“Procurement Guidelines”-Disuse of conflict minerals-Elimination of antisocial forces● Promotion of sharing of information on establishment, revi-sion, and abolishment of laws and regulations for chemical
substances in products● Shifting to compliance with ISO 9001:2015 (some in progress)● Implementation of ISO9001:2015 education for internal
auditors● Ratio of eco-design product sales to total sales【Environment】
Premier eco-design products:11%● Offering eco-design products● Reduction in use of substances ● Reduction in amount of substances inflicting
environmental load:
inflicting environmental load
60% reduction in basic unit compared with● Promotion of energy and
FY2005
resource savings● Reduction of CO2 emissions: 11% reduction of● Promotion of group-wide intepower consumption compared with FY2005
grated ISO 14001 certification● Compliance with environmental laws andregulations● Compliance with ISO 14001:2015● Ratio of eco-design product sales to total sales● Continuous social● Donation activities● Donation activities● Implementation of internship and job experience programs● Hosting of Monozukuri (manufacturing) School● Hosting of Monozukuri (manufacturing) School● Implementation of volunteer activities● Promotion of sports● Support for the Drop-in Center Project in● Promotion of environment beautification activities near andcontribution activities● Coexistence with communityand volunteer activities● Promotion of cultural, art, andsports activities

TAMURA CORPORATION REPORT 2 0 1 8

Premier eco-design products: 11% [Target
achieved]

Bangladesh● Support for sports activities
experience programs-Sponsorship of women’s football team● Coexistence with the community and volunteer(Chifure AS Elfen Saitama)
activities-Sponsorship of 2018 Nerima Kobushi Half● Promotion of Eco-cap Campaign
Marathon● Promotion of used stamp collection● Promotion of supporting UNICEF by collecting
foreign coins● Implementation of internship and job● Reduction in amount of substances inflicting environmental

load: 58% reduction [Target not achieved]● Reduction in power consumption: 14% reduction [Target
achieved]● No violations of environmental laws and regulations● Completion of shifting to compliance with ISO 14001:2015● Implementation of ISO14001:2015 education for internal
auditorsaround individual business sites● Promotion of Eco-cap Campaign● Promotion of used stamp collection● Promotion of supporting UNICEF by collecting foreign coins

corporate philosophy and the “Tamura Group Codeof Conduct”● Promotion of compliance education● Implementation of emergency drills● Timely and appropriate disclosure of corporate

information on the website● Improvement of appropriate working environment● Continuous provision of overseas training● Enrichment of healthcare● Promotion of safety and sanitation● Execution of the action plan to promote active

female participation● Response to conflict minerals issues

Page 20
Web:・Customer Relations
・Business Partner Relations● Quality improvement awareness-building

activities during the Quality Month● Hosting of the Tamura Group Quality Promotion

Conference● Update of green procurement standards● Strengthening of management of chemical sub-stances in products

Pages 21-22
Web:・Environmental Management
・Environmental Targets,
Performance, and Evaluation*
・Action on Environmental Protection*● Ratio of eco-design product sales to total sales

Pages 19-20
Web:・Social Contribution Activities*● Donation activities

Premier eco-design products: 12%● Reduction in amount of substances inflicting

environmental load: 60% reduction in basic unit
compared with FY2005● Reduction of CO2 emissions: 13% reduction of
power consumption compared with FY2005● Compliance with environmental laws andregulations● Hosting of Monozukuri (manufacturing) School● Promotion of sports● Implementation of internship and job experience

programs● Coexistence with the community and volunteer

activities● Promotion of resources recycling activities

TAMURA CORPORATION REPORT 2 0 1 8

18

CSR REPORT DIGEST

Social Performance Report

CSR Activity Topics in FY2017
Social performance
reportTo realize CSR management, it is essential to enhance theawareness and sensitivity of not only the management but alsoeach and every employee. Therefore, we identify complianceeducation as an important means of achieving that purpose. In
FY2017, we started a program of training in small groups at ouroverseas bases using English and Chinese teaching materials
in which familiar work-related examples are introduced as casestudies. Aiming to facilitate the understanding of compliance andto reduce risks, we will continue to actively promote the program.
1

1

Is it okay to ignore a small number of defective products?

能对轻微不良品睁一只眼闭一只眼吗？

Is it okay to ignore a small number ofdefective products?

能对轻微不良品睁一只眼闭一只眼吗？

2

Is it okay to ignore a small number of defective products?

家电制造厂商A公司的新产品——电磁炉上市了。
A
但在开始销售后的公司内部报告中发现，
该产・ 想当然的认为不会马上发生事故，品的儿童锁偶尔会在未进行解除操作下发生解
1
只需要个别对应就可以了锁的情况。
・ 认为一切以利益优先基于对停止出货或回收产品所带来损害的考虑，营业部门的负责人松田先生没有对外公开事实，公司内部似乎也觉
而是决定由公司内部商讨对策。
重要的是提高利润吧

1Craig—the Sales Dept. manager responsible
for the new cooker—wants to avoid the losses
Can'tthat would be caused by suspending
overemphasize
shipments and recalling the product.
theHe
importancedecides to handle the problem internally,of profits...
without making a public announcement.

QN. 1

Everyone would
agree that we canhandle this quietly,on the inside.

There won't be any
problem at all if
people use it properly.
We can handle any
incidents case by case.

Craig knows about the product defect, but
he doesn't announce it. Why?
The child-lock
failure is
extremely
infrequent. So it
should be safe
anyway.

Craig

2

能对轻微不良品睁一只眼闭一只眼吗？

Company A has decided to start sales of a new
induction cooker.
product's
ANS Soon• afterHe thethinks:There won't be any accidents in the shortlaunch, an internal report indicates that in rareterm. We can handle the whole thing case by case.
cases the cooker's child safety lock canrelease by itself.
• He thinks: Profits are supposed to come first.

得没什么大问题

一般使用上也没什么问题……
有问题的话个别对应
就行了

Q1

We won't be able toreach our sales targets
if we stop shipments
and do a recall.

为何松田先生明知产品存在缺陷，却不对外公开这个事实呢？

儿童锁自动解锁十分少见，所以一
定不会发生事故的Even if something
bad does happen,
we'll figure a way
out of it.

产品一旦停止出货、
进行召回的话，就难以达成目标销售额了……

就算有问题也
能想办法逃脱的松田先生▲Training materials for the overseas bases (English/Chinese)

ining
Voicetruofcttraorins

Tamura Corporation of Hong Kong Limited

Cherry YuenAs the training subject was associatedwith actual work, all the participants
could understand the details and it was agood opportunity to reconfirm the appropriate conduct to betaken. Furthermore, dialogue through active discussion fostered mutual understanding among employees, enhancing
solidarity as a team.

■Major Compliance education programs implemented in FY2017● Discussion-based training in small groups using training materials● Issuance of an e-mail magazine twice a month, in which familiar

news, case studies, etc. of compliance violations are explained inan easy-to-understand manner● Group training on cartel prevention, the Act against Delay in

Improvement of appropriate
working environment
Efforts have been made to create a working environment
where employees can engage in their work in a continuous andpleasant manner by balancing motivation in work with appropriate labor management. As a measure to increase motivation
in work, the Company introduced multipurpose leave forchildcare, nursing care, and volunteer activities, etc., and paid
leave in hourly units. With regard to the adjustment of labor
management, training courses on labor management andstress management have been promoted for managers of all
business sites and efforts have been made to disseminate compliance-based labor management and to realize a stress-freeworking environment. Furthermore, aiming at the preventionof harassment and the promotion of smooth communication,a multifaceted assessment (360-degree evaluation) was heldwith managers in FY2017.
Tamura Corporation will continue to endorse appropriate labor management based on compliance and promotemeasures to maintain & further improve a pleasant working
environment.

Payment of Subcontract Proceeds, Etc. to Subcontractors, theUnfair Competition Act, and information management

All-Tamura-Group Summer Festival
In July 2017, a total of 600 employees and family
members from 4 work sites and 3 affiliated companies
in Tokyo & Saitama Prefecture gathered at the Groupwide summer festival. Participants furthered exchange
beyond the boundaries of work sites and companies while enjoying meals and events, thus spurring
communication.

19

TAMURA CORPORATION REPORT 2 0 1 8

Efforts in quality improvement
To uphold the policy of “Manufacturing excellent products”, the Tamura Group has been promoting various quality
improvement activities while endeavoring to establish the
optimal quality management system for each business segment. In FY2017, a new corporate-wide quality training course,
the Design Review
Working Seminar, wasstarted with the aimof quality improvement in the productdesign process. The
Seminar is held for thefield staff members ona regular basis, aiming
to improve designers’
skills, which are at
the core of productquality.

Support of the Drop-in Center
Project in Bangladesh
We have been supporting the Drop-in Center Project forstreet children in Dhaka, Bangladesh, through the nonprofit
organization KnK International Children without Borders. The
Center has been established to support children who are forced
to survive on the street because of family problems such as
poverty and abuse, and provides meals, educational activities,
and awareness-raising activities. The Company has an affiliated company
in Bangladesh
and has been
engaged in the
production ofLEDs for automatic vending
machines andother products
since 1997. We
will continue tosupport suchchildren as a（C）
KnKlocal company.

Monodukuri(Manufacturing) School
Since 2008, the Monozukuri (manufacturing) School has
been held every year to convey the joy of “monozukuri” to thenext generation, who are the builders of the future. At the
School, skills such as how to make an AM radio are taught. In
FY2017, the School was also held for the first time in Kodama
Factory, and it has so far been held at all work sites. Moreover,
the School is also held at community events, etc., of local governments, thus expanding its activity.

Tamura Corporation
Kodama Factory▲ Exhibiting works at
the Nerima Industrial
Exhibition
Aizu Tamura
Corporation▲

Compliance education

In 2016, the in-house reporting service was renamed the“Ethics Consultation Window”, which now not only deals with
reports on illegal acts, etc., but also focuses on consultation.
In addition to the contact point manned by fellow employees,
an “independent window” where reports can be made directly
to the auditor or an outside director has been established toincrease the effectiveness of the internal reporting system.
During FY2017, with the aim of deepening the understanding of reports & consultations aswell as the protection of whistle
blowers, efforts were made todisseminate the system by implementing training courses anddisplaying posters. The number ofincidents of in-house reporting &consultations was 13 cases, which
was an increase of 6 cases over
FY2016. We will continue with thedissemination so that the internalreporting system can function inan effective manner.

▲

Dissemination of the internal reporting system

Diffusion of CSR

Support for sports activities
Through support for sports activities, we are enhancing oursocial contribution to local communities.

Sponsorship of Chifure AS Elfen Saitama Football Team
Tamura Corporation has been supporting the “Chifure AS
Elfen Saitama” team in the Japan Women’s Soccer League(Nadeshiko League) as its top partner since 2006. In March
2018, the “Sayama City Cup”, of which the Company is the title
sponsor, was held in Sayama City, the birthplace of the team.

Sponsorship of 2018 Nerima Kobushi Half Marathon
Tamura Corporation cosponsored the “2018 Nerima Kobushi
Half-Marathon” as a local firm and many employees of theCompany participatedin the marathon event.
At the event booth, incollaboration with the
public interest incorporated
foundation
Nature Conservation
Society of Japan, aworkshop was held
for making tote bags
using the skin of deerthat had been culled toprotect the ecosystem.

TAMURA CORPORATION REPORT 2 0 1 8

20CSR REPORT DIGEST

Environmental Performance Report

Environmental Topics in FY2017
Environmental
環境報告
Performance Report

Environmental Management

Tamura Group Environmental Policy

The Tamura Group is doing the best to lessen environmental impact through ongoing improvement activities, thereby
fulfilling our social responsibility as well as contributing to therealization of a sustainable society.

Environmental Concept
The Tamura Group promotes the conservation of a biologically diverse global environment and conducts all of its
business activities in harmony with the environment. These
activities are based on the Group Mission Statement: “TheTamura Group offers an original range of products and services, highly regarded in the global electronics market, tosatisfy the evolving needs of customers, employees andshareholders supporting the Group’s growth.”

Integration of Environmental
Management System (EMS)The Tamura Group established a globally unified environmental management system in 2006 and had integrated 26
sites at 18 companies by FY2017, the intent of which was toimprove environmental performance and strengthen environmental governance of the Group as a whole.

Ⅰ

Increasing thepercentage sales of
eco-design products

Percentage sales ofPremier eco-design products: 11%*1

11%

12%

Ⅱ

Reducing substanceswith environmentalload

Chemical substances designatedunder the PRTR Law*2:
60% reduction in basic unit vs. FY2005

58% reduction

60% reduction

Ⅲ

Reducing power
Reduction of power consumption:
consumption
11% reduction vs. FY2005(Reducing CO2 emissions)

14% reduction

13% reduction

Solar LED-type outdoor lights

The Tamura Group has a quantitative grasp of environmental load generated through its business operations and is working to
reduce environmental load in various aspects of its business activities through development of premier eco-design products as wellas improvements in productivity and distribution efficiency.
■ Summary of environmental performance in FY2017

Business activities

58,000 m
184 klHeavy oil

41 kl

Diesel oil
Paper
Water
Chemical substances
designated under
the PRTR Law*

121 kl8.94million sheets
174,000m3
184 t

Competitive productOutput

0.20
0.10
0.00
S30/S42 (Newly developed product)

-0.10
-0.20

S30/S42(Newly developed product)

Bus barvoltage-0.30

OutputNew Standard -4.8μA/°C

-0.40
-0.50
-50 -40 -30 -20 -10

0 10 20 30 40 50 60
Ambient temperature（ﾟC）This eco-design solder paste product has a Pb-free solder
composition and also satisfies the “halogen-free” requirementthat is specified by the JPCA-ES01 standard.
While a low working property has always been a problem
for the conventional “halogen-free” product, this product hasrealized a combination of both high reliability and good working property.
The occurrence of voids and chip-side balls in leadless

Summary of the Tamura Group’s Environmental Performance

Gasoline

Bus barvoltage

New Standard +4.8μA/°C

0.30
S42 series (1000A)

Conventional product

Conventional product70

80

90 100General-purpose solder paste “TLF-204-HF35” compliant with halogen-free standard*1: Because of changes in the standards and the aggregation method, the target values have been reviewed.
*2: PRTR: Pollutant Release and Transfer Register; a public registry on harmful chemical substance emissions into the environment that may have a potentially serious impact, as well as transfer of waste

Processed natural gas

Offset temperature drift

0.50
0.40

Low dv/dt error

Achievements Environmental
for FY2017 targets for FY2018▼

Environmental targets
for FY2017

In response to such demand, in addition to sharply reducing offset, realizing low-temperature drift, and reducing dv/
dt output error of the S30 & S42 series, we have reduced theirweight by 20% compared with the conventional productthrough the optimization of the core shape and thinning.

Low offset drift

S30 series (2000A)

Environmental
objectives

3

In the green energy market (wind power generation, solar
power generation) that is sharply expanding worldwide, highly
precise and reliable current sensors of the few-thousand-ampere class are demanded for DC/AC conversion control andsupply current monitoring of power generation equipment.

1. The supply of eco-friendly products.
2. C
 ontrol and reduction of environmental
burden materials.
3. P romotion of energy conservation and saving
resources.

■ FY2017 Targets and Performance of the Tamura Group

55,860 MWh

Closed-loop-type current sensors applicable to large current: S30/S42 series

Offset current Iof (mA)

The main focus of the Tamura Group’s business is thedesign, development, production and servicing of electronic components, electro-chemical materials, soldering
equipment and information equipment. Our environmental management system ensures the efficient useof resources, pollution prevention and compliance withregulations. We are also committed to continuously
improving the management system and focus on thefollowing activities for environmental protection:

The Tamura Group has taken the initiative in environmental
protection by setting three common targets: “increasing the percentage sales of eco-design products,”“reducing substances withenvironmental load,” and “reducing power consumption,” which
are the main measures specified in its environmental policy.
In FY2017, while the targets of “increasing the percentage
sales of eco-design products” and “reducing power consumption” were attained, the result of “reducing substances withenvironmental load” was slightly below the target.
Efforts to improve the management & processes and review
works related to environmentally hazardous substances that
we are currently addressing will be continued.

INPUT

The Tamura Group carries out the product environmental assessment in the development and design phase and while addressing
the minimization of environmental impact, we will contribute to the global environment through development and offering of premier eco-design products.

Main Measures

Tamura Group Environmental
Targets, Performance, and Evaluation

Electricity

New Premier Eco-design Products

Voidparts has increasingly become a problem with the increase in
fine-components-mounted products on the market, which has
been a very difficult problem for halogen-free paste. With the
TLF-204-HF35, however, the Company has achieved a reduction of 50% in voids and chip-side balls compared with its
conventional products.
Efforts will be made to expand the sales of this product thatcan respond to the needs of a wide range of customers.

Chip-side ball

OUTPUT

10～20
balls

Procurement

CO2 emissions

36,910 t-CO2

Development

Wastewater

160,000 m3

Manufacturing

Total waste generated

1,865 tDistribution

Recycling volume

996 t

QFN void

Evaluation of chip-side ball

Customer

Total disposal volume

227 t

Metal mask：120μm
Target parts：0.5mmP QFPMetal mask：130μm
Parts size：3216CR, 2012CR, 3216CC, 2012CC

0〜2 balls
Conventional product

Newly developed product

Conventional product

Newly developed product*We manage our factories overseas with the same criteria. This includes the figures for our factories overseas.

21

TAMURA CORPORATION REPORT 2 0 1 8

TAMURA CORPORATION REPORT 2 0 1 8

22CORPORATE DATA

Corporate Information

Company Profile
Company name TAMURA CORPORATIONFoundedBoard of Directors

May 11, 1924
(Incorporated in Nov 21, 1939)

Capital11,829 million yen

Share capital（as of Mar. 31, 2018）

Authorized

Number of shareholders

President

Board of Auditors

Integrated Audit Division
CSR Promotion Division

252,000,000 shares

Issued and outstanding
82,006,671 shares(Not including 764,802 shares of treasury stock)
Closing date

Major financial information〈consolidated〉

Organization Map (as of April 1, 2018)

March 31, each year.

◆ Net sales(Millions of yen)
100,000
80,00060,00081,1762,940
22,614◆ Operating income/Operating income to net sales
Electronic
Components

86,248
4,123
24,365

Electronic Chemicals /FA systems

84,642
5,251
24,74179,607
4,030
23,567

Information
Equipment

85,558
4,224

4,000
3,000

40,00055,61357,73854,60220,00011,30751,94955,8741,000

0Directors/
Corporate
officers

Information Equipment(as of June. 27, 2018)

President/CEO

Naoki Tamura

Director/
Executive Vice President

Masahiro Asada

Director/
Vice President

Guohua Li
Yusaku Hashiguchi

Director

Takeo Minomiya（Outside Director）
Akira Kubota（Outside Director）
Haruko Shibumura（Outside Director）

Broadcom Business Unit
Electronic Components

Electronic Components Business Sector
Magnetic Business Unit
Automotive Business Unit
Unit Business Unit

(Millions of yen)
7,000

4,000

Shoichi Saito

Business support Department

2,000Standing Auditor

Hajime Kubo

AuditorKoichi Moriya（Outside Auditor）

Electronic Chemicals/FA systems

Atsuji Toda
（Outside Auditor）

Electronic Chemicals & FA System Business Sector

Executive Officer

1,000

Mitsutaka Nakamura

2,891
2013

4,098

3,928

Assembly Material Business UnitPWB Functional Materials Business Unit
Factory Automation Business Unit

2014

2015

Shareholders’ equity(Term-end)

6.0
31,72037,966

10,000
0

5,091

5,480

2014

2016

2017 (FY)

2014

2015

(Millions of yen)
5,000
4,000

3.6

3,000

3

2,000

3,727

1,797

4

0

0

(%)
15

(Millions of yen)
6,000

2013

2

3,630

1

1,783
2014

2015

2016

2017 (FY)04.838,3889.0
42,6102015

92017 (FY)

4,000
3,000

6
3

2016

5,000

0

2,000

4,993
3,707

3,004

1,000
0

2013

2014

2,389
2015

1,658
2016

2017 (FY)◆ Dividend per share/Payout ratio

32.2

10

27.4
18.5

8

300
442.05468.04519.59

6
4

100

2
2014

4.7

2.1
3,106

1,000

(%)
5

3

2.2

12

2013

0

2017 (FY)

4.2

500

0

2016

Net income attributable
to shareholders of parent
Net income to net sales attributable
to shareholders of parent

Dividend per share
Interim
Term-end

463.032◆ Net income attributable to shareholders of parent / Net income
to net sales attributable to shareholders of parent

4

12

400

TAMURA CORPORATION REPORT 2 0 1 8

2013

(yen)
14

386.77

3

5,407

1

(yen)
600

200

5,117

ROE

◆ Net assets per share

23

4,029

4,266

2,409

2

36,253

2013

4

5

10.0

8.9

30,0006

05◆ Capital expenditure

40,00020,0006.4

1Advanced Technology Development Department
Material Department

(%)
7

3.6

◆ ROE（Return on equity）

Akira Kimura

(FY)

4.6

(Millions of yen)
50,000Business Management Department

Atsushi Shinbo

0

6.4

Electronic Chemicals Quality Assurance Department

Seiji Shibata

2017

Ordinary income to
net sales

Ordinary
income

4.8

5,000

3,000

Seigen Kohakura

2016

6,000

West Japan Supervising Department

Koichiro Maiki

2015◆ Ordinary income/Ordinary income to net sales

Norihiko Nanjo

Tatsuya Kiyota

2014*Net Sales for external Customers by business segment (excludes internal net sales between different
businesses).
*The amount of net sales for each fiscal year includes other operations (transportation, warehousing
and others).

Director/
Senior Executive Officer

Senior Executive Officer

2013

6

6.3

3.0

2,000

Human Resources & General Administration Division

6.4

5.0

4.7

5,000

25,378(%)
7

Operating income to
net sales

Operatingincome6,000

Marketing and Development Management DivisionCorporate Management Division(Millions of yen)
7,000

2015

2016

2017 (FY)

0

7

7

6

1（comme-

3

3

3

3

3

2013

2014

2015

morative）

4（%）

Payout ratio

35
30

9

9

19.8

20.3

5

5

25
20
15
10

4
2016

4
2017 (FY)50

TAMURA CORPORATION REPORT 2 0 1 8

24CORPORATE DATA

Global Network

EUROPE■Head Office/Regional Headquarters/Others■Electronic Components■Electronic Chemicals■FA Systems■Information Equipment

U.K./Czech ■ Tamura Europe Limited
Germany ■ Tamura Elsold GmbH
Italy ■ Tamura Magnetic Engineering S.R.L.

AMERICAS
U.S.A ■ Tamura Corporation of America■ Tamura Kaken Corp.,U.S.A
Mexico ■ Tamura Power Technologies de Mexico, S.A de C.V.
Brazil ■ Telepart-Tamura Industria e Comercio Ltda.
■ Indusul Industria de Transformadores Ltda.
■ Industria Sul Brazil de Transformadores Ltda.

JAPAN
ASIA
Korea ■
Tamura Chemical Korea Co.,Ltd.
■■ Tamura Corporation of Korea■
Tamura Professional Solution Korea Co.,Ltd.
China ■■■ Tamura Corporation of China Limited■
Shanghai Xiangle Tamura Electro Chemical Industry Co.,Ltd.
■
Tamura FA System (Suzhou) Corporation■
Tamura Seiko Electronics (Changshu) Co.,Ltd.
■
Tamura Electronic Material (Tianjin) Co.,Ltd.
■
Hefei Ecriee-Tamura Electric Co.,Ltd.
■
Tamura Kaken (Dongguan) Ltd.
■
Tamura Electronics (S.Z.) Co.,Ltd.
■
Tamura Electronics (Huizhou) Co.,Ltd.

■ New base in Germany

25

Hong Kong ■■■ Tamura Corporation of Hong Kong Limited
Taiwan ■Tamura Power Technology Co.,Ltd.
■
Tamura Kaken Tech Co.,Ltd.
Thailand ■■■ Tamura Corporation (Thailand) Co.,Ltd.
■
ESE lndustries (Thai) Co., Ltd.
Malaysia ■Tamura Electronics (M) Sdn.Bhd.
■
Tamura Kaken (M) Sdn.Bhd.
Singapore ■■■ Tamura Singapore Pte.Ltd.
Vietnam ■■ Tamura Corporation Vietnam Co.,Ltd.
Bangladesh ■Op-Seed Co., (BD) Ltd.
Myanmar ■Earth Tamura Electronic (Myanmar) Co.,Ltd.
India ■
Tamura Elcomponics Technologies Pvt.Ltd.

■ New base in Thailand

Tamura Elsold GmbHESE Industries (Thai) Co., Ltd.

As of October 31, 2017, the Company acquired 100% of the stock of Elsold
GmbH & Co.KG, a solder manufacturer in Germany, and established Tamura
Elsold GmbH. This new company has a manufacturing base in Germany andhas been expanding the solder business for electronic parts and car parts,
with many delivery results to customers mainly in Germany, but also in other
European countries. By establishing a new base in Germany and building
an integrated system for the development/production/sales of electronic
chemical materials in Europe, we shall continue to promote the expansionof the sales of highvalue-added mounting
materials such as solder
paste, mainly targeting
non-Japanese customers.

In November 2017, the Company finalized equity participation
Tamura Elsold ESE lndustries (Thai) Co., Ltd. A new factory is now underconstruction and will be completed in October 2018. Tamura Elsold ESE
lndustries (Thai) Co., Ltd had previously been entrusted with the final
production process of solder paste as an OEM partner. From now on,
as a Tamura Group company, the new company will aim to realize “local
production for local consumption”through integrated production startingfrom the raw material (solder powder), to increase profit through cost
reduc­
tion, and to expand
busi­ness. By establishing a
new production base, theCom­pany will respond to
the rapidly growing ASEAN
market, reduce exchangerisks, and strengthen theGroup’s risk management
system.

TAMURA CORPORATION REPORT 2 0 1 8

Offices and ■■Head Office/Tokyo Factory
Factories ■Sakado Factory■
Iruma Factory■
Sayama Factory■
Kodama Factory■■■■ Osaka Sales Office■■■ Nagoya Sales Office■
Fukuoka Service Office
Affiliated ■Koha Co.,Ltd.
Companies ■■Aizu Tamura Corporation■
Wakayanagi Tamura Corporation■
Tamura Distribution Center Inc.

◆ Composition of net sales by region〈consolidated〉(FY2017)◆ Number of employees by region〈consolidated〉(as of March 31, 2018)

Americas

Americas

Japan

EuropeEurope（21%）

170（3%）

3,373Millions of yen（4%）
6,533Millions of yen
（8%）
Asia

36,778Millions of yen（43%）

Total

85,558Millions of yenJapan38,871Millions of yen

（45%）

264

（5%）

1,157

Total

5,410

Asia

3,819（71%）
TAMURA CORPORATION REPORT 2 0 1 8

26

Tamura’s mascot “Quenu”

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