About Toyoda Gosei

Value Creation Story

Value Creation Strategy

Foundation of Value Creation

Data

Toyoda Gosei’s Growth Strategy

New Medium-Term Business Plan: The 2030 Business Plan
In August 2023, Toyoda Gosei prepared the 2030 Business Plan as our medium- to long-term management planto achieve sustainable business growth in the future by providing social value in response to changes in themobility society.
Our goal is to become a company that pursues the possibilities of polymers to contribute to a future of better
mobility and living, and we will deliver safety through safety systems, comfort through interior and exterior
components, and decarbonization to society through the development of new businesses for polymer materials
to society.
Progress of the 2025 Business Plan
In the 2025 Business Plan announced in2018, we have set targets of 1 trillion yen inrevenue, 8% in operating profit ratio, and
10% in ROE. We are on track to achieve ourrevenue target due to the growth in sales
revenue, which exceeded the increase inautomobile production, as well as the impactof the yen’s depreciation. On the other hand,operating profit ratio and ROE are projected
to fall short of the targets because of
production fluctuations due to the COVID-19
pandemic, the impact of the materials market,
and the postponement of the development of
new products and technologies.
Based on the 2025 Business Plan, we haveidentified four main issues that we must
address in order to achieve our next stageof growth: Adapting to CASE technologicaladvances with a focus on BEVs,
Restructuring of our business portfolio,
business management with an awarenessof capital efficiency, and creating new
businesses and products to serve as newpillars in the next generations. These will be
addressed in the 2030 Business Plan.

ROE
Operatingprofit ratio

Target line

10%

Outline of 2030 Business Plan
Vision for the company

Become a company that pursues the possibilities of polymers
to contribute to a future of better mobility and living.
Delivered value

SafetyComfortThrough safetysystems

Through interior &exterior
components

Decarbonization

Target line¥

1,000.0 bn¥951.8 bn

Through new
businesses forpolymermaterials

Target line

3.7%

8%
Basic policy

Revenue
FY2018FY2019FY2020

FY2021

FY2022

FY2025
Forecast

Challenges for further growth
01. Responding to CASE (Connected, Autonomous, Shared,
Electric) technological advances with a focus on BEVs

Priority measures Structural reforms aimed at growth in priority businesses, regions, and customers(expand sales in safety systems, interior/exterior, and materials businesses toregional automakers in North America, India, and China).
 Forge strategic alliances to accelerate growth globally and strategically reinforce
development and intellectual properties (IP).
 Revamp management with a “polymer-like organization” that organically binds
people and the organization.

 Focus on fields that balancesocial value and economic value.
(business portfolio restructuring)

Roll out different products for different regions and customers. Expand
organizations and human capital in each overseas region.

02. Restructuring of business portfolio
Focus on fields that balance both social value and economic value.

03. Business management with an awareness of capital efficiency

FY2030financial objectives

Revenue

Operating profit

Operating profit ratio

ROE¥1,200.0 bn¥100.0 bn

8%

10%Shift resources into high-growth, high-profit fields and manage balance sheets.

04. Creating new businesses and products to serve as newpillars in the next generation

Speed up the generation of ideas and ascertain their commercial viability.
Develop products from the customer’s point of view and market them as solutions.

areas that combine social and economic value. We
aim to achieve revenue of 1,200 billion yen, operating
profit of 100 billion yen, operating profit ratio of 8%,
and ROE of 10% by increasing our economic value
while enhancing our presence value. To achieve thesegoals, we will implement structural reforms for priority
businesses (safety systems, interior and exterior
components), regions, and customer service, as well
as forge strategic alliances to accelerate growth
globally and strategically reinforce development andintellectual properties (IP). At the same time, we will
implement the invigoration of our people andorganizations. By evolving into a “polymer-likeorganization,” in which people and departments work
closely together and demonstrate high creativity andproductivity, we will be able to respond to changes inthe environment while freely changing the shape of theorganization and create new value.

Economic value (profitability)

Overview of the 2030 Business Plan
The 2030 Business Plan sets forth our vision of
becoming a company that pursues the possibilities ofpolymers to contribute to a future of better mobility
and living, and we aim to further enhance our strengths
by expanding our business domain using polymer
technologies such as rubber and plastics. The
manufacturing of parts rooted in polymer technology is
our original business, and at the same time, it is thebusiness we carried on from the rubber research
department of our predecessor, Toyota Industries
Corporation. We view this as our strength and a sourceof profits, and we are strongly committed to expanding
our business into new areas while maintaining anddeveloping our wealth of knowledge and advanced
technological capabilities.
Our specific growth areas are (1) safety, (2) comfort,and (3) decarbonization, and we aim to achievesustainable business development by focusing on

Business portfolio restructuring for growth
We will shift our resources to growth areas that deliver
In restructuring of our business portfolio, we will adopt
both social and economic value.
TG-ROIC*1 management and invest efficiently for eachregion and business.
We currently have four main product areas: safety
Operating profit
system products, interior and exterior components,*1 TG-ROIC =Non-current assets + Inventories
functional components, and weatherstrip products.
While implementing
restructuring of theseEnvisioned business portfolio in 2030 (circle size denotes revenue)
businesses, we will shift
BEVand expand our businessexclusive Decarbonization
products
domain to contribute to theimprovement of safety,
Make interior
Providespaces more
safety to BEV
security, and comfort of
Resource shiftcomfortableusers and otherduringvehiclesociety. Also, we willtravelInterior/
occupants
Fuel
Safetydevelop new businesses
exterior
systemsystemcomponents
products
products
and products, such ashydrogen tanks andNew businesses/products
material recycling, toWeatherstrip(hydrogen tanks, materials recycling)
products
contribute to
Growth areas
decarbonization.
Social value (degree of contribution to safety, comfort, and decarbonization)

24

T OYODA GOSEI REP OR T 20 23

25

About Toyoda Gosei

Value Creation Story

Value Creation Strategy

Foundation of Value Creation

Data

Toyoda Gosei’s Growth Strategy

Enhancing Social and Economic Value
Changes in the mobility society and anticipated needs

1. Contribution to Safety

In preparing the 2030 Business Plan, we began bya means of transportation to a space for relaxation.

creating a concrete image of what the world will be like

The trend toward viewing mobility not simply as ain 2030 (the future mobility society). We predict thatmeans of transportation, but as something that must

mobility will change in 2030 due to advances in CASE*

provide value, such as relaxation or entertainment, willand decarbonization, and that people’s relationships

accelerate. The final change is human coexistencewith cars will also change significantly.

with new forms of mobility. As various forms of mobility

The first change is the acceleration in resource

are created, we believe that functions forrecycling. We envision the creation of a social systemcommunication between cars and between cars andthat will create a large cycle, including the final

pedestrians will be required.

disposal of ELVs (End-of-Life Vehicles). The second

As the automobile industry and other companies workchange is the proliferation of clean energy. As theto implement the mobility society of the future, and as

energy mix is rapidly changing, there is expected to bevehicle manufacturing changes, we also will support

a need to improve energy efficiency, including fuelnew vehicle manufacturing while reexamining what ourefficiency, in mobility as well. In addition to the

products should offer.

environment, we believe that there will be a shift from* CASE: A term coined from the initial letters of Connected, Autonomous,
Shared, and Electric.

Over the years, Toyoda Gosei has contributed to the
reduction of traffic fatalities by providing various typesof airbags. Safety system products such as airbags,
seat belts, and steering wheels will be required to
evolve in terms of both function and performance as
BEVs and self-driving vehicles become morecommonplace. Also, demand continues to grow assafety regulations are tightened around the world.
We will continue to develop and provide moreadvanced occupant protection products to achieve asafe and secure mobility society. To this end, we will
deepen and accelerate our collaboration with Ashimori
Industry Co., Ltd., which we have been conducting
since 2021. By leveraging each other’s businessassets and expertise, we will maximize synergies indevelopment, design, sales, procurement, andproduction, and aim to become a system supplier thatcan propose and provide total safety system productsolutions.
In proposing seat belt and airbag systems, we expectthat the lap airbag, which incorporates an airbag inside
a seat belt, will be an innovative turning point. Thissystem can protect occupants in any position, and is
adaptable to major changes in vehicle structure. We
are developing airbags that can respond to changes inmeans of transportation and new mobility, such as
cyclist airbags that protect pedestrians and bicyclists
from collisions, and variable-volume airbags withbiometric sensing technology that protect the elderly
and pregnant women. We plan to increase airbag
production to 1.5 times the FY2022 level by FY2030.

• Over the years, we have reduced traffic fatalities by supplying airbags of various types.
• As BEVs and autonomous vehicles proliferate, our next task is to develop and bring to market sophisticated products forprotecting vehicle occupants.

Mobility society envisioned in 2030: Advances in CASE and decarbonization
Acceleration inresource recycling

1

Proliferation of clean energy

2

3

Deepen collaboration with Ashimori Industry Co., Ltd.
Offer seat belt and airbag systems
Provide safety toeveryone on the move

Provide safety tovarious vehicle
occupants

4
H2

Mobility infuture society

H2

Provide safety to BEV
users

H2

Added value

SafetyComfortDecarbonization

Airbags adapted to changing modes oftransportation and new forms of mobility

Illuminated steering wheels that connect the personwith the vehicle, and lap airbags that protect
occupants in various postures in anticipation of
the proliferation of autonomous vehicles

Airbag and seat belt solutions
optimized for changes in vehicles
brought on by the shift to BEVs

Cyclist airbags that offer protection
for pedestrians and cyclists
in case of collisions

Biometric sensing technology
and variable-volume airbags that
protect the elderly and mothers-to-be

FY2030airbag production
volumeCompared to FY2022:

1.5xTransformation from means of transportation to space for relaxation

26

Human coexistence with new forms of mobility

2025

2030

T OYODA GOSEI REP OR T 20 23

27

About Toyoda Gosei

Value Creation Story

Value Creation Strategy

Foundation of Value Creation

Data

Toyoda Gosei’s Growth Strategy

2. Contribution to Comfort

3. Contribution to Decarbonization

Aiming to create more comfortable in-car spaces while

contribute to the improvement of comfort for new

responding to changes in mobility, we have set a target

mobility by utilizing the polymer technologies that weto increase the ratio of BEV-related sales revenue tohave developed over the years and by strengthening

40% by FY2030. Specifically, we will work to provide

our cooperation with other manufacturers.

new functions that are unique to BEVs, such as

We will also develop and propose signage and lighting

combining interior and exterior components withusing LED light as a means of communication between

safety systems and illumination products. Also, forcars, and between cars and pedestrians, inself-driving vehicles, we will develop retractable

collaboration with other companies. Signage, forsteering wheels and multifunctional consoles that can

example, can be used in the new mobility society to

expand the interior space during automated driving.

signify “please go ahead” to pedestrians at pedestrian

Furthermore, we will provide new comfort value incrossings when the driver is not present in a self-

response to the new era of mobility through plastic-

driving vehicle.

based, lightweight, and integrated designs for frontend modules and other components, as well as
improvement of instrument panel modules. We will
• By integrating safety systems and illuminated products into interior & exterior components, we will offer new
functionality suited to BEVs
•W ith our polymer technology, we will also upgrade car designs and manufacturing to bring about new forms of mobility

Ramp up collaboration
with other manufacturers
Communication with othervehicles and pedestrians

Employ polymer technology tocontribute to the evolution of mobility• Harness our knowledge of polymer materials (formulation, kneading) to focus on development of high-performancematerials and recycling materials.
•C ontribute to decarbonization and recycling promotion in society at large by not only utilizing the materials ourselves
but also selling them externally.

Base ingredient manufacturer

Toyoda Gosei

Automakers

Recycling company

Monomers/polymerization

Formulation, kneading/
Molding, processing

Assembly

Collection/recycling

Transformation of
structure and build
Frontend module

Broad instrument panel
and integration of components

Designs that evoke
the essence of BEVs

Added value

Polymer materials
knowledge andknowhow

Sensor transparent front end
and sensory illumination

Space to relax during
autonomous driving

Instrument panel module

Retractable steering wheel
and multifunction console

2025

innovations as well as daily improvements in
manufacturing processes. Our manufacturing
processes mainly emit CO2 through painting, plating,rubber extrusion molding, and plastic injection
molding. We aim to achieve carbon neutrality by
production technology innovations in each process,such as developing decorative elements with low
environmental impact in the painting and platingprocesses, optimizing vulcanization conditions during
the rubber molding process, and using electric power
and low pressure in the plastic molding process, aswell as utilizing renewable energy and other resources.
We have moved up our goal of achieving carbon
neutrality for Scopes 1 and 2 to 2030 from the previous
target of 2050. We will contribute to the realization of awide range of decarbonization and recycling promotion
in society by establishing a system that enables us toprovide CO2-free, high-added-value products as earlyas possible.

Plastic-based, lightweight,
integrated

External signage and lighting

28

We will harness our knowledge of polymer materials tofocus on the development of high-performancematerials and the formation of businesses for material
recycling.
In the recycling of products and materials, since many
products are incorporated into automobiles, it isdifficult for us to go it alone and we need to proceedon the premise of collaborating with other companies.
We will implement initiatives with the entire supply
chain in mind, including how to collect and recycle
materials and products up to and including final
disposal of automobiles. For some products, such as
plastics, rubber, and airbags, we are already working
on a system to collect waste materials from outside
the company and recycle them into recycled materials,
which we will develop into businesses and monetize,
including sales outside the company.
We will accelerate the pace of our energy-conservation
efforts by implementing production technology

2030

BEV-relatedshare of sales
in FY2030

Collaboration/alliance40%

High-performance materials

Collaboration/alliance

External sale

Recycled materials

Fire-resistant materials,
insulating materials, etc.

Plastics, rubber, airbags, etc.

Expand into organic synthesis
and develop new materials

Collect waste materials externallyand recycle them into new materials

T OYODA GOSEI REP OR T 20 2329