Outline of the 15th Medium-Term Management Plan Fiscal 2024–2026

Priority strategies

Notable initiatives•	Creating attractive cabin products and technologies

Securing cabin coordination capacity

Active co-creation activities with companies in other industries
Research on how people spend time inside a vehicle, focusing on next-generation vehicles•	Enhancing systems and software development capabilities

Development of electronic control device components such as seat-integrated ECUs
Training of advanced engineers•	Strategic acceptance of orders for target commercial rights

Growth strategies

Further growth in new businesses	Securing commercial rights for derivative models that incorporate technologies from existingordered models	Securing orders for advanced development on future models by proposing next-generation
technologies in advance•	New customer development	Enhancing joint efforts between individual regions and the head office, centered on the New
Business Management Division

14th Medium-Term
Management Plan results

Revenue (Billion yen)

409.2

480700Operating income (Billion yen)

15.2

4468

Operating margin

3.7%

9.2%

9.7%

ROE

1.8%

8.5%

10.0%

Implementing sustained, stable returns unaffected by business results

Dividends

Stable increase in dividend payments, targeting DOE of 3.5% or more by the end of the 15th Medium-Term Management PlanAcquisition of treasury stock

Flexible share buyback during the term of the 15th Medium-Term Management Plan amounting to cumulative total of
20 billion yen and appropriate retirement of treasury stock

Materiality KPIs

•	Growing orders received for parts commercial rights	Steadily receiving orders for next-generation shared frames	Enhancing development to receive orders for light-vehicle frames	Growing orders received through enhancing our competitive strengths in parts•	Achieving a reformed corporate structure capable of adapting toproduction fluctuations
V-shaped recovery in North America

Regionalstrategies

Restructuring the China business strategy	Thorough automation of production line to keep up with irregular production and cost
increase pressures	Strengthening cost competitiveness through optimization of specifications, materials,and processes•	New initiatives not bound by existing businesses	Building new partnerships aiming to secure new customers	Expanding use of local manufacturers to lower costs and reduce procurement risks•	Further business expansion with European automakers
Strategic growth in new businesses in Europe	Sales development with Poland as a key station	New establishment of a trim cover production company with a view to expanding adoptionof components

pp. 12–13

14th Medium-Term
Management Plan results

Innovative technology development expenses
as a percentage of R&D expenses

15th Medium-Term
Management Plan targets

vs. FY2021 +2.6%2030 targets

vs. FY2021 +3%

vs. FY2021 +10%

8.8P

7.0P

2.0P (stable high levels)

CO₂ emissions reduction rate

vs. FY2020 -16%

vs. FY2020 -25%

vs. FY2020 -50%

Waste reduction rate

vs. FY2020 -16%
(Total)vs. FY2020 -25%

vs. FY2020 -50%

Water intake reduction rate and environmental
impact from wastewatervs. FY2020 -13%
(Total)vs. FY2020 -15%

vs. FY2020 -50%“0” environmental impact

Establishment of the TS TECH Fund(matching gift program)

Program survey
Study of plans

Establishing a TS TECH
Group donation program

Establishing a TS TECH
Group donation program

Seat supplier IQS rating

CBBAAA

Supplier Sustainability Guidelines compliancerate

97%(Subject: 126 domesticsuppliers)

100%(Subject: Domestic andinternational suppliers)

100%(Subject: Domestic andinternational suppliers)

Percentage of management positions held bydiverse human resources

32.5%

33.3%

35%

Corporate Governance Code compliance rate

100%

100%

100%

Engagement rating
Corporatefoundation

A higher share of major customers’ products

2030 targets

Basic policy•	Receiving orders for seat trading rights through regional coordination	Securing commercial rights in regions where no seat orders have yet been received	Building new partnerships and deploying sales activities leveraging them

15th Medium-Term
Management Plan targetsShareholder returns

Society

Management policy Realizing ESG management

Financial targets

Environment

Under the 15th Medium-Term Management Plan, we are first of all focusing on the challenge of recoveringprofitability as soon as possible, to achieve further growth and deliver on our 2030 Vision. To do this, the plansets out nine key strategies, comprising growth, regional and functional strategies. We also aim to help to build asustainable world, as the ESG management initiatives we have been implementing since the 13th Medium-Term
Management Plan culminate, and always seek to be a reassuring presence for our stakeholders and “A company
sincerely appreciated by all.”Securing cabin coordination capacity
Changes in automobiles brought about through technological innovation will transform the value required of vehicle interiors. In order
to seize this business opportunity and translate it into further business growth, it is imperative to be able to coordinate not only seats
but the entire cabin, proposing new value to customers and users.
We will work to create products and technologies that, put together,can deliver attractive cabins, utilizing both our accumulated proprietary technologies and collaboration with companies in other fields.

Snapshot of products for next-generation vehicles[Vehicle interior products][Energy-saving products for EVs]
• Sound and vibration HMI seat
• Heated seat with rapid
warm-up blower• Door HMI stealth switch• Affordable air conditioning seat
• Long slide rail
• Thin rotating mechanism
components[Environmentally responsibleproducts] • Health Care Seat
• Sustainable seat, etc.
• Biosensing
Proprietary technologies × Active co-creation with companies in other industries

Creation of attractive cabin products and technologies•	Toward a sustainable supply chain	Balancing stability and profitability through risk visualization and efforts to promotelocal procurement	Working with business partners to reduce supply chain CO₂ emissions volume (Scope 3)•	Evolution of environmental technologies for early commercial use
Functional
strategies

Enhancing efforts to develop
environmental technologies	Establishment of technologies for product applications for biomass materials and eco-friendly
steel materials	Resource recycling accomplished by selecting materials and designing structures with recycling
in mind•	Building a production structure capable of outperforming competitors
Building high efficiency production structures

Foundation16

Human resources strategies/Financial strategies
establishing sustainability

TS TECH Integrated Report 2023	Continuous evolution of production lines through introduction of digital transformation and AI,
and automation	Improvement of production management efficiency through system reviews, etc.
pp. 18–21/Earning a reputation as a quality leader/Promoting and firmly

Targeting further business growth
The TS TECH Group has to date achieved steady business growth,

Revenue (Billion yen)
■ Sales to Honda Group■ Sales of new businessesserving as a global partner to Honda Motor Co., Ltd. and its affiliates
in the Honda Group. In order to achieve further growth, we aim toachieve our 2030 Vision not by securing a higher share of major

409.2

Percentageof sales
10% ofrevenue

480

customers’ (Honda Group) business but also by ensuring furthergrowth in new businesses, for instance by acquiring new customers
and commercial rights outside the Honda Group.

377.2

90% ofrevenue

2030 targets• Automobile seat share for the Honda Group above 70%• New business sales accounting for more than 30% ofconsolidated revenue

700

Percentage
of salesGrowing newbusiness sales

210

30% ofrevenue

Expanding sales
by improving share

Supply chain restructuring

490

70% ofrevenue

FY2023

FY2026

FY2030End of 14 th
Medium-Term
Management Plan

End of 15 th
Medium-Term
Management Plan

VisionTS TECH Integrated Report 2023

17