TOYODA GOSEI REPORT 2010

TOYODA GOSEI REPORT2010
About Toyoda Gosei Report 2010

1

About this Report

This report is designed to help all of Toyoda Gosei’s stakeholders gain a deeper
understanding of, and build further trust towards, the business activities of the
Toyoda Gosei Group. We have prepared and edited our ‘Social and Environmental
Report’ and our ’Annual Report’ into a single volume, with the objective of further
enhancing our trustworthy presence. This report contains special features on‘Technical development for the next generation’ and ‘Activities to promote theafforestation of our plants’ to introduce the future direction of our company’sbusiness and environmental activities, and the direction we are looking to follow.
Reports on Toyoda Gosei’s activities will be classified into the five categories ofBusiness, Management, Society, Environment and Finance.
The ‘Society Report’ will contain individual chapters for each of our stakeholder
groups. Accordingly, details of our activities will be reported separately for‘Customers’, ‘Employees’, ‘Shareholders’, ‘Suppliers’, and ‘Local communities’.
The ‘Environment Report’ will be based on the Fourth Environmental Action Plan
and will contain separate reports for each of the themes therein.

The report covers theperiod between

April 1, 2009 – March 31, 2010

Scope

As a general rule, the target companies are those consolidated in the Toyoda
Gosei Group.
Some of the items are mentioned individually.

Declaration of thecompany nameIn this report, Toyoda Gosei Co., Ltd. will be referred to as either "our company"or"Toyoda Gosei"; when referring to the Toyoda Gosei Group in its entirety,"Toyoda Gosei Group" will be used.

Notices pertaining tofuture forecasts

Included in this report are predictions and forecasts pertaining to the future plans,
strategies, and achievements of Toyoda Gosei. These are predictions based not
on past facts but on suppositions and opinions drawn from judgments madethrough information that is available to our company at this point in time.
It also covers risks and uncertainty related to such things as economic trends,
intensification of automotive industry competition, market demand, taxation,
laws, systemic changes, and natural disasters. Please understand that it ispossible that actual achievements may differ from our company's predictions.

Reference Guidelines

࡮The Global Reporting Initiative (GRI)‘Sustainability Reporting Guidelines Version 3.0 (G3)’ *࡮Ministry of the Environment‘Environmental Reporting Guidelines 2007 version’ *‘Environmental Accounting Guidelines 2005 version’*A Table of these Guidelines is posted on our website.
http://www.toyoda-gosei.com/Information/environment/report.html

Date of issue

September 2010 (next publication scheduled for Summer, 2011 / previous
publication was September, 2009)

Contact information forcomments about thisreportGeneral Administration Division, General & Public Affairs Dept. (Headquarters)
TEL. 052-400-1055 FAX. 052-409-7491
Plant & Environment Engineering Division, Environment Administration Dept.
(Kitajima Technical Center)
TEL. 0587-34-3291‫ޓ‬FAX. 0587-34-3309
It is possible to access this report on the Toyoda Gosei Homepage.
http㧦//www.toyoda-gosei.co.jp/

TOYODA GOSEI REPORT 2010

*The above period forms the basis, but if necessary content related to other times outside this period will be included.

Contents
1
2
3
5

7

About Toyoda Gosei Report 2010
Contents
Message from the President
Special Feature on Technology

28

Technology that meets the needs ofthe next generation and that continues
to evolve

29
31

Environmental Report

Special Feature on Society and the Environment

Together with the community, we will
create environmentally-friendly‘authentic afforestation’

32

Business Report
913

Report by Business Units· Interior and Exterior Parts / Body Sealing Products· Functional Parts / Safety System Products· Optoelectronics Products / General Industry Products
Report by Region· North America / Asia and Oceania (Asia, China) /Europe and Africa

34

Management Report
15

16
17

Corporate Governance· Achieving Prompt, Efficient and Sound Business
Management· Implementation of auditing in functioning divisions
bolsters internal auditing
Compliance· Ensuring Compliance as Toyoda Gosei Group
Risk Management· System for Risk Management· First break/restoration and early response from theDisaster Response Manual

36

Social Report
19

21

24
25

26

Relationship with our Customers· Basic Policy for Quality· A quality assurance system that is consistent fromdevelopment through production· We aim for production process quality control in all
operations, including for office staff, and act accordingly· Sales activities responsive to customer needs· Monitoring the manufacturing process and market quality,and promoting measures to adapt· Customers praise us as a superior supplier
Relations with our Employees· Developing human resource who can think and operate
independently· Internal support from the company to provide a stable
Work-Life balance· Promoting diversity· Planning mental and physical health support· Promoting activities to achieve our goal of zero accidents· Create a workplace that is easy to work in with thecooperation of labor unions
Relationship with our Shareholders· Achievements and rates of return· Proper disclosure of information
Relationship with our Suppliers· Basic Procurement Policy· Holding a procurement policy explanatory session· Strengthening our collaboration with suppliers· Tackling quality improvement, compliance· Promoting green procurement
Involvement in Local Communities· Further bolstering social contribution activities

40

Globally Expanding Environmental Management· Environmental Policy· Organization for Promoting Environmental Action
Fourth Environmental Action Plan
Energy Saving/Prevention of Global Warming· Handling vehicle weight reduction and clean energy· Energy saving equipment introduction and CO2 emissions
reduction· Our regular delivery schedule was reorganized andconsolidated to make transport more efficient
Resource Circulation· Ways of thinking about recycling design· Reducing Waste and Materials Discarded· Rigorous management of returnable containers
Environmentally Harmful Substances· Reduction of Environmentally Harmful Substances andour global response· Reduction of environmentally harmful substances in the
production process and compatibility with amendments tothe ‘Act on Confirmation, etc. of Release Amounts ofSpecific Chemical Substances in the Environment andPromotion of Improvements to the Management Thereof’(PRTR System)
Environmental management· Enhancing environmental education at Toyoda Gosei
Group· Implementation of Environmental Audits· Establishment of environmental management system atoverseas affiliated company· Promoting environmental education at Toyoda Gosei
Group· All employees make ‘Eco’ declarations during
environmentally-focused months· Disclosing environmental cost information· Promote the popularization of LED products, for whichhigh expectations are held as an environmentally-friendly
product.
· Efforts of the Domestic and Overseas Affiliated Companies
Legal Compliance Activity· Water quality management· Conserving the atmosphere through controlled operationof the number of boilers· Proper disposal and storage of equipment containing
PCB· Conserving Soil & Groundwater· Strengthened management through activities promoting‘Zero Cases of Non-compliance and Complaints’.
· Strengthening our waste management system

Financial Report
41

Data Highlights /Consolidated Five-Year Financial Summary
Consolidated Balance Sheets /Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets /Consolidated Statements of Cash Flows

Corporate Data
47

Global Network / Executive structure
Company Profile / Stock Information

TOYODA GOSEI REPORT 20102

Message from the President

Our company strives to secure thetrust of society and to implement
corporate activities for providing
superior products at affordable
prices around the globe
President

Hajime Wakayama

Introduction
Toyoda Gosei has developed its business with a focus onhigh polymer technologies to become a global systems
supplier in the automotive parts and LED fields, now with
44 facilities established across 16 countries and regions.
We aim to please our customers by providing attractive
products. Having many happy customers leads to happy
employees and growth for the company. In turn, a growing
company is able to provide even more attractive products
to its customers. Through these types of business activities,
Toyoda Gosei benefits its customers and contributes tosociety. Furthermore, we constantly strive to secure thetrust of our customers by taking an approach of always
giving the utmost priority to safety and quality in all of ourbusiness activities.

Establishing a stable business foundation that isstrong in times of environmental change
There was a favorable turnaround in vehicle demand last
financial year, supported by measures in various countries
to promote automotive sales such as reduced taxes forenvironmentally-friendly vehicles. However, with the exception of some developing nations, the number of vehicles
produced was actually lower than the previous year.
Despite these circumstances, the Toyoda Gosei Groupmanaged to work as a team to convert its corporate structure to one that was capable of securing a profit amidst
slower operations. As a result, our consolidated operating
results for fiscal 2009 included sales of 495 billion yen andordinary income of 26.5billion yen. The negative influence ofour main business of automotive parts in the first half of the

3

TOYODA GOSEI REPORT 2010

financial year was significant and resulted in a revenue
decrease. However, thorough activities were implemented
to reduce total costs including cutbacks in fixed expenses,
particularly in the regions of Japan and North America, andto streamline raw costs. This, accompanied by the benefitsof increased sales in non-automotive parts, particularly in
the LED field, helped the company achieve a drastic
increase in profit.
In the future, however, a more difficult economic environment is anticipated as various countries bring to a close
their support measures for stimulating automotive sales
along with an economic outlook that remains as unclear as
ever. We are establishing a stable business foundation thatis strong in times of environmental change by ensuring
price-competitiveness through early implementation of lowcost technologies, slimming down our fixed expenses
around the globe, and by improving the level of our manufacturing workplaces through a return to the basics of‘manufacturing’ itself.

Ensuring competitiveness and expanding
sales in growth markets and fields
In comparison to Europe and North America where theautomotive industry has reached maturation, the market indeveloping countries such as China and India is growing
rapidly. Here, prices are becoming increasingly competitive
as local manufacturers rise to the forefront with their lower
cost advantage. Similar fierce competition is anticipated in
the LED market as a succession of new participants rush to
cash in on the high hopes held for the future potential of
LED products, which are capable of meeting the need toreduce CO2 emissions.

Management Philosophy

Boundless Creativity & Social Contribution
1. We aim to provide products and services with satisfying quality and price in a timely manner, through advanced R&D andproduction engineering.
[Customer satisfaction]
2. We aim to realize a vibrant corporate culture through innovative thinking of individuals and enhanced team work value
based on shared responsibility and mutual trust between employees and management.
[Respect for individual]
3. We aim to, as a global corporation, strive to be a trustworthy, respected corporate citizen by honoring both the letter andthe spirit of law and rule of every nation, and through community-based business activities and contributing to industry,
economy and the society.
[Good corporate citizenship]
4. We aim to dedicate ourselves to create a prosperous society and make the Earth a better place to live through our businessactivities such as providing environment preservation, energy-saving and safe products. [Respect for the environment]
5. We aim to ensure steady growth as a global leading manufacturer in high-polymer and LED technologies through astrengthened corporate structure and the management that can adapt to changes.
[Steady growth]

In order to overcome this difficult competition and achievesustained growth, we are urgently increasing the pace atwhich we tackle structural reforms. These will be based ona policy that focuses on enhancing systems for businessexpansion in developing countries and on strengthening our
LED business to contribute to a low-carbon society.

Strengthening technological development
for the future.
As environmental awareness heightens, an increasing
number of vehicles such as HVs and EVs (hybrid vehicles
and electric vehicles) are being powered by electricity, andthe automotive industry is on the verge of a major turning
point. From this perspective, Toyoda Gosei has decided tofocus its development on the field of ‘Environment / Safety /Saving Resources’. We have developed new construction
techniques such as for light, high-cycle molding andcompact plating & painting lines, and have progressively
introduced these to our facilities both domestically andabroad. This has resulted in our being able to launch new
products onto the market, such as the industry’s top level
thin, lightweight resin front aero bumper and the world’s first
fuel inlet pipe successfully made from resin.
Hereafter, we will continue to strive to appropriately selectnumerous development themes, strengthening ourmanagement so as to fully utilize limited resources to the
maximum extent possible, and to accelerate our development with a sense of speediness. We will also devote ourenergies into fostering the professional human resourcesthat support these technical developments, together with
their comprehensive abilities.

Our responsibility as good corporate citizens
Corporations are ‘public institutions of society’ that support
the construction of a better society, and whose businessactivities should be developed so as to help fulfill their
responsibilities. The Toyoda Gosei Group aims to be recognized by society as a good corporate citizen, and is involvedin activities for environmental conservation and social contribution.
To conserve our environment, we have reduced CO2
emissions at our plants and developed recycling technologies. Plus, we have launched the “Afforestation Project of
our Plants,” beginning with the Heiwacho Plant, to help
create the best and greenest environment possible, cooperating with people in the local community. To deepen ourconnections with regions in various countries, we will
extend this project to four domestic and overseas facilities
in fiscal 2010.
Furthermore, we will establish volunteer centers within ourcompany for activities to contribute to society, for example
helping with community cleaning or going around to welfare
facilities to help with wheelchair repairs. We are also proactive about implementing measures to achieve a good
Work-Life balance.
Finally, I would like express my humble appreciation to every
one of our stakeholders, including our shareholders, customers, trading partners, all those involved in local communities,
and our employees and their families, for ‘making the most’of every situation. We aim to continue being a company thatmeets your high expectations, and ask for your continued
guidance and support in the future.

TOYODA GOSEI REPORT 2010

4

TOYODA GOSEI REPORT 2010

Special Feature
on Technology

Technology that meetsthe needs of the next generationand that continues to evolve
Technological progress has the power to make great changes in society. Many technical innovations
aimed at the various concepts of safety, comfort and environmental-friendliness have contributed tomaking our society what it is today and represent a major presence within our daily lives.
Toyoda Gosei takes full advantage of the various technologies it has accumulated as a high-polymer
manufacturer. We have developed many technologies for automotive parts, and these have been widely
implemented in various products. Additionally, LED is garnering a lot of attention as an environmentallyfriendly light source. We are increasing our reputation for reliability in this field by making the best
possible use of the technologies we have accumulated as a chip manufacturer, and are moving forward
steadily towards the future.
Front aero bumper with the industry’s top
level thin characteristics

We are on a challenge to make vehicles lighterin weight, using a comprehensive approach that
Resin door sample exhibited at theutilizes our high-polymer technologies
Tokyo Motor Show
With next-generation energy vehicles such as plug-in
hybrid cars and electric vehicles expected to spread in
popularity as environmental awareness increases, various
car manufacturers and parts manufacturers are engaged inaggressive research and development competition. To
achieve these next-generation vehicles, the performanceof vehicle bodies needs to be improved by making parts
more lightweight and by making changes to the materials
used in components, in addition to further developments
for motors and storage batteries.
Toyoda Gosei will also play a part in the various structuralchanges of product development by utilizing the knowledge of high-polymer technologies that it has accumulated
over many years as a rubber and resin manufacturer. We
plan to approach this from a comprehensive perspectivethat combines materials, design and production technologies. We are particularly confident of our contribution to
making vehicle bodies ‘more lightweight’, which will leaddirectly to improvements in fuel efficiency and driving
distance (on a single battery charge), as well as reductions
in CO2 emissions.
For example, by making resin products thinner, we canreduce the amount of materials used, thus making the
product lighter and simultaneously contributing to resource
conservation. In developing its thin, lightweight front aero
bumper, Toyoda Gosei succeeded in creating a complicated combination of molecule structures that reduces thegeneral thickness of the resin from the standard 3mm tojust 1.5mm.
5TOYODA GOSEI REPORT 2010

In 2009, the front aero fender was put to practical use as
an optional part. It is the industry’s top level lightweight
product and combines the dual benefits of high quality andaesthetic appeal. We have decided to apply this technology to other interior and exterior parts also, and willdevelop it for many different vehicle types in the future.
We are also challenging ourselves to pursue the full potential of resin, with the aim of a ‘complete resin conversion
for vehicle interiors and exteriors’, as the replacement ofmetal parts with resin parts could result in a massive
reduction in vehicle body weight. As an example of this,we exhibited a sample of a resin door at the 41st Tokyo
Motor Show held last year. From the standpoint of a highpolymer manufacturer, we aimed to develop a resin door
that was both lightweight and strong, through structuraldevelopments such as material developments and honeycomb structures, to produce a new direction for resin
usage.
In order to meet the needs of future eras and to contributeto environmental challenges, we plan to tackle a variety offields including bio-plastic development and recycling, andlower raw costs. By advancing every one of our technologies even further, from raw materials through to production, we will proactively move forward with the researchand development of future-focused technologies andproducts.

Mobilizing our know-how as a LED chip manufacturer tocreate a new semiconductor businessToyoda Gosei’s technologies can also be seen in LEDs,
which have rapidly spread in popularity as a nextgeneration light source excelling in environmentallyfriendly properties.
In 1991, we succeeded in developing a blue LED using
gallium nitride (GaN) as the material, under the instructionof Professor Isamu Akasaki, Doctor of Engineering,
Professor of Meijo University and Special Professor of
Nagoya University, following which we began mass
production. The addition of the blue LED drew attention
from around the globe, as when combined with the previously available red and green, it became possible torepresent the three additive primary colors of light,
facilitating full color representation.
Toyoda Gosei’s LEDs were implemented in traffic signals
or as a light source for LCD screen backlights on mobile
phones. Steady and repeated technological developments led to improved brightness and longevity, and LED
applications were expanded to include lights forcomputer backlights and shop displays. Once LEDs
became compatible with high currents, the range ofapplications expanded once again to include backlights
for LCD televisions and general lighting. LED usage has
spread widely from the industrial field to general household products We have currently achieved the world’s
highest levels of brightness and luminous efficiency.
After more than 20 years spent on various kinds of LED
research and development, Toyoda Gosei aims toachieve an even higher level of technology, based on its
solid reputation for reliability backed by technology
honed in automotive parts. As one example of this, aglass seal LED developed by Toyoda Gosei in 2009 wasawarded the ‘Nippon Brand Award’, a “Cho” Monodzukuri Component Award supported by METI (Ministry of
Economy, Trade and Industry).
Much anticipation is held for LEDs, which use noenvironmentally-harmful substances such as mercury,
and which have many environmentally-friendly characteristics such as low power consumption, long-lasting
performance and reduced CO2 emissions. Rather thanrest on the laurels of the reputation for reliability we have
carved out thus far, we at Toyoda Gosei strive daily tofurther develop enhancements for performance andtechnical capabilities, and we aim to continue to expand
demand. Furthermore, gallium nitride (GaN), the material
used in LEDs, still holds a lot of potential. Its effectiveness and applications are being researched with theobjective of developing semiconductor fields other thanlight-related ones, and we hope this will lead to new
businesses, also.

The newly-developed glass seal LED.

Popularization accelerated withthe development of blue LEDs

TOYODA GOSEI REPORT 2010

6

TOYODA GOSEI REPORT 2010

Special Feature onSociety and theEnvironment

Together with the community,
we will create environmentallyfriendly ‘authentic afforestation’In fiscal 2009, the 60th anniversary of Toyoda Gosei’sfoundation, we launched the “Afforestation Project of ourPlants.” Under the instruction of Professor Akira Miyawaki *,we planted saplings of trees indigenous to the region’s
natural environment in order to regain “true forests.” Our
employees and their families, together with people fromthe local community, planted the saplings with their own
hands. Besides ecological conservation and an antiglobal warming measure, the project thereby let us raise
the level of our environmental consciousness and improve
communication both within and external to the company.
We believe that this will help to build a society where
humans can coexist harmoniously with the environment.

* Professor Akira Miyawaki (right) is Yokohama National
University Professor Emeritus and Director of the JapaneseCenter for International Studies in Ecology. Known worldwide
as a leading advocate of afforestation activities, Prof.
Miyawaki has been involved in planting approximately 17
million trees in more than 4,000 locations around the world,
including Africa, China, Thailand and India.

7

TOYODA GOSEI REPORT 2010

“True forests” where humans
coexist harmoniously with theenvironment
Making “true forests,” advocated by Prof. Miyawaki,
involves not simply planting trees at random, but planting
a mixture of many kinds of trees that are native to the area,
so as to bring back to life a strong and abundant forestthat closely replicates its original natural environment.
Prepare soft, air-rich, well-drained soil, and densely plant
many varieties of saplings; they will then compete witheach other to grow into an independent, maintenance-freeforest within only about 3 years.

of the local school,n by the Brass BandA performance was give
ool.
Sch
ry
enta
Elem
MiyakeForests play an important role for all the living throughphotosynthesis and by providing habitats; they are also
expected to act as an anti-global warming measure by
absorbing the CO2 in the atmosphere. Hopefully, they
benefit us in disasters; they protect lives from landslides
caused by typhoons and fissures by earthquakes, andprevent the spread of fire. Forests also help to control
noise and dust, act as a windbreak, and purify the atmosphere water. Forests surrounding plants further have acalming, relaxing effect; the greener walls of the plants
are pleasing to neighboring residents and the employees
working there.

Afforestation Project of our Plants carried out
by the cooperation of the company, employees and the neighboring communities
Main objectives of the project are: 1 ) making our facilities
greener with more trees; 2 ) having all employees involvedin the afforestation activities, thereby raising their environmental consciousness (eco-friendly mind set) and nurturing a sense of unity among them; and 3 ) cooperating andconnecting with our neighboring community. Together withthe local community, we will make our facilities more
ecological where people can coexist with nature. By plant-

ing trees with their own hands and seeing the trees growinto forests, employees and our neighbors, together with
their children, are going to raise environmental consciousness and pass it on to the next generation. The expansionof this kind of activity will, we believe, consequently lead tothe substantial protection of the environment.
In February 2009, we learned how to make true forests
through Prof. Miyawaki’s lecture. Then, all the employees
participated in preparation for planting trees (cultivationand formation of planting ground). Besides, all company
directors including our President, together with 140 “Planting Leaders” selected from across the company, attended
the “Leader Training” by Prof. Miyawaki to learn how toplant saplings. On the “Tree Planting Day” in November
2009, under the guidance of the Planting Leaders, around2,000 employees, their families, and people from the local
community planted approximately 20,000 saplings of 47
species and varieties around the Heiwacho Plant.
Based on the afforestation at the Heiwacho Plant, we willdevelop this project at each of our facilities every year; ouraim is to plant ultimately around 600,000 trees at ourapproximately 60 domestic and overseas facilities. In fiscal
2010, we are making true forests at four facilities: The Bisai
Plant and the Miyoshi Logistics Center in Japan, and othertwo facilities in China and Thailand.

TOYODA GOSEI REPORT 20108

Report by Business Units

Business Report

We strive to create attractive products based on thecornerstones of our operations, which involve ‘developing and offering value-added products’, ‘perfecting
and advancing our manufacturing expertise by focusing on the basics’, and ‘continuing to maintain andenrich systems for an optimal global supply network’.
We are also working hard to further develop othermarkets using our advanced technical capabilities.

Management Report

Interior and Exterior Parts

Body Sealing Products●Instrument Panel Modules and Components●Interior Parts●Exterior Parts●LED Applications●Car Accessories●Glass Run●Door Weatherstrip●Opening Trim Weatherstrip●Luggage Weatherstrip

Social Report
Environmental Report

Safety System Products● Airbags● Steering Wheels

Functional Parts●Fuel Tank Module Components●Power Train Parts●Chassis and Drive Train Parts

Financial Report
Corporate Data

■ Sales by Business Units

Interior andExterior
Parts
31.5%

Body Sealing
Functional
Products
Parts
15.5%
15.7%

9

TOYODA GOSEI REPORT 2010

General Industry Products● Communication Equipment Components● Air Conditioning Products● Home Construction Components● Construction and Industrial Machinery Components

General Industry
Products 1.5%

Optoelectronic
Products
6.7%

Safety System
Products
29.1%

Optoelectronic Products●LED lamps●LED lighting

Fiscal 2009

Fiscal 2008

Year-on-year
rate (%)¥billion

Percentage ofnet sales (%)¥billion

Percentage ofnet sales (%)

Interior and Exterior parts

155.7

31.5

158.3

29.0

—1.6

Body Sealing products

76.6

15.5

88.7

16.2

—13.6

Functional Parts

78.0

15.7

104.4

19.1

—25.3

Safety System products

144.0

29.1

166.5

30.5

—13.6

Amount of Automotive Parts Business

454.4

91.8

517.9

94.8

—12.3

Optoelectronic Products

33.1

6.7

20.4

3.7

62.3

General industry Products

7.4

1.5

8.0

1.5

— 6.8

Amount of Non-Automotive Parts Business

40.6

8.2

28.4

5.2

42.9

Total

495.0

100.0

546.3

100.0

—9.4

Interior and Exterior Parts
Highlights of fiscal 2009

■ Development and mass production of the world’s first thin,lightweight bumper

Business Report

Cockpit modules
Applying technical and know-how cultivated until now and promoting
modulization.
Along with improving interior sensation of unity and quality, we havesucceeded in large scale cost reduction.

Management Report

Radiator grilles
The development of radiatorgrilles corresponding to millimeterwave radar that can detectobstacles ahead and alert
passengers of danger.

Console boxes(double door)
Developing our original structured
console box that you can open andclose the door from both driver andpassenger seat smoothly.

Front bumper spoilers

Social Report

We took an across-the-board reduction in automobile production as an opportunity for change . We returned to our starting
point in manufacturing, exhaustively inspected the workings ofthe manufacturing process, and eliminated waste and loss;
through this we increased our production capability. In difficult
times, we are bolstering our development system and concentrating our efforts on manufacturing of products with prospects.
In particular, we are expanding development more proactively
than before for environmentally related matters including
lightening, weight reduction, and recycling. In fiscal 2009,
Toyoda Gosei developed and mass produced the world’s firstthin, lightweight bumper. Also we are moving into an era oflessened dependence on fossil fuels. With the development of
substitute materials that have little or no effect on food demandor supply, we find ourselves faced with the challenge of finding
hidden or unknown possibilities that do not revolve aroundthe interior/exterior framework process.
We have also been actively developing LED lighting for vehicle
interiors, combining together the environmentally-friendly
benefits (low power consumption) with superior design, whilefurther incorporating this know-how into LED lighting for homeuse.

Fiscal 2009 (consolidated)
Net Sales: 155.7 billion yen
Percentage of Sales: 31.5%

Environmental Report

Body Sealing Products
Highlights of fiscal 2009

●
③
●
①
●
②

① Glass Run② Opening Trim
Weatherstrip③ Door Weatherstrip

●
①
●
②

Corporate Data

Through our constant efforts to make automotive parts lighter,
which lead to benefits in improved fuel efficiency and lower
costs, we developed and brought to market a low-density,
lightweight weatherstrip in fiscal 2009. When this weatherstrip
is combined with the lightweight opening trim that we beganmass-producing the previous fiscal year, the weight of bodysealing products can be lightened by approximately 20%. We
are also actively considering the environment in manufacturing, such as by expanding recycling technologies for rubber
products and increasing our use of non-solvent paints.
In fiscal 2009, we implemented and established the ‘Creatingsites appropriate for the basics of manufacturing’ concept at
our Japanese plants, to rigorously eliminate waste and loss.
This concept will be developed globally to include our 13
production bases overseas, and we also plan to amplify ourChinese and Indian sites in the future. Through advances in
the restructuring of our global production system, we arebuilding a stronger corporate constitution.

Financial Report■ Development and mass production of a low-density,
lightweight door weatherstrip■ Creating sites appropriate for the basics of manufacturing●③

We are always proposing the most suitable
door seal structures in response to various
door function and design needs

Light weight opening trim
for compact cars
Achieved unprecedented
weight reduction withdevising rubber materials
and metal inserts

Fiscal 2009 (consolidated)
Net Sales: 76.6 billion yen
Percentage of Sales: 15.5%

TOYODA GOSEI REPORT 201010

Functional Parts
Highlights of fiscal 2009

■ Development and mass-production of resin inboard
boot made from single-piece structure*1■ Development and mass production of an engine
hood with high-brilliance molded-in color.
Fill limit vent valves

Business ReportManagement ReportSocial Report

With fuel costs escalating and the increased environmental
awareness of recent years, there is greater demand for lowcost, low environmental impact products. Accordingly, wedeveloped an engine hood with high brilliance that uses
molded-in coloring materials containing zero VOC*2 substances,by abolishing the paint process. Mass production has alreadybegun. We will utilize our strengths in low environmental
impact to focus our efforts on expanding orders for theseproducts in fiscal 2010. We will continue to advance our policyof developing materials and products for alternative energypowered vehicles such as hybrid systems, electric vehicles,
and fuel cell-powered vehicles.
Amidst these difficult ongoing economic conditions, we willview model changes of existing products as opportunities for
improvement. We plan to rigorously review waste at ourdomestic and overseas production sites and establish a
speedier and more efficient production and supply system.
*1 Single-piece structure (a structure formed with a single piece of material and no attachments)*2 Volatile Organic Compounds

Filler caps

Fuel hoses and tubes
Fuel Tank Module Components
We are promoting the production of
goods that prioritizes the development ofhigh performance components centeredon those surrounding fuel tanks as wellas environmental regulations(Rubber) (Plastic single-piece structure)
Constant velocity joint boots

Plastic fuel filler pipes

Brake hoses

Engine cooling hoses

Hoses & Boots
Developing boots components that support brake system,
running and steering systems of engine

Fiscal 2009 (consolidated)
Net Sales: 78.0 billion yen
Percentage of Sales: 15.7%

Environmental Report

Safety System Products
Highlights of fiscal 2009

Financial Report■ Expanding our scope of development to include
pedestrian safety in addition to passenger safety■ Development of low cost products through technicalinnovation in design and production

Corporate Data

We are developing and mass producing the world's first rear-end
impact airbag to help realize the goal of a "360 implementation."
We have also begun mass production of a center airbag for rearseats, with the objective of protecting the passengers in theevent of a side-impact collision. Hereafter, we will also develop‘smart airbags’ as a next-generation product that offers
advanced passenger protection for both smaller- and largersized passengers. In addition to the collision safety featuresdeveloped thus far, we will proactively develop preventative
safety features that integrate technological developments to offer
functionality for supporting drivers. Examples include drowsinessprevention and pre-crash systems to avoid collisions.
The scope of development will be expanded from safety forpassengers within the vehicle, to include safety for pedestrians
outside the vehicle, and we are currently carrying out development of devices for pedestrian protection. Having achieved
lower costs through technical innovations in design and production, we are also focusing our efforts on markets in high-growthdeveloping countries.

11 TOYODA GOSEI REPORT 2010

Driver-side airbag

Curtain airbag
Rear-end impact airbag

Passenger-side airbag

Knee airbag
Seat cushion Airbag

Steering Wheels
Airbag handles with heightened
operability due to their collection ofswitch types

Side airbag
RR seat console airbag

Pedestrian protection airbags(under development)
These airbags inflate in the event of afront-on impact to protect pedestrians

Fiscal 2009 (consolidated)
Net Sales: 144.0 billion yen
Percentage of Sales: 29.1%

Optoelectronic Products
Highlights of fiscal 2009

■ Best-ever sales figures recorded■ Sales of chips and packages for notebook PCs
approximately tripled

Business Report

LED backlight for laptop computers

Management Report

LED backlight for meters

Image of LED lighting= LED system downlights
We are making progress on thedevelopment of residential LED
general illumination systems

Social Report

Due to the launch of the industry’s top class LED chips andpackages, we pulled ourselves out of the worldwide recessionof fiscal 2008 and recorded our best-ever sales figures in fiscal
2009.
This is the result of our high luminance, highly-effective, longlasting packages gaining recognition as the de facto standard
for the notebook computer market, which has been positioned
as a principle market since fiscal 2007. There was also a rapid
surge in demand for LED backlights for notebook computers,
rising from initial estimates of approximately 40% to around
60% in fiscal 2009, and this was another factor that boosted
sales figures.
In addition, the lighting field is beginning to adopt these chips
in LED bulbs. In fiscal 2010, we will focus our energies on
activities for individually-customized customer service , including for high-efficiency lighting packages, with the objective offurther expanding our business.

White SMD-type LEDs

Fiscal 2009 (consolidated)
Net Sales: 33.1 billion yen
Percentage of Sales: 6.7%

Environmental Report

General Industry Products
Highlights of fiscal 2009

Mobile phone cases

Corporate Data

Mobile phone cases are one of our main products. The
production, supply, and technological capabilities of ourChinese subsidiary company have been highly praised by new
customers, and the volume of production in China is growing
steadily. In fiscal 2010, we estimate sales will be more thandouble the figures of the previous year, thanks to orders for
new model cases. The mobile phone market in Japan has
more or less stabilized, and for the time being our policy is tofocus on Chinese production to expand the global market. Our
subsidiary company and production site in Tianjin, China, isworking to optimize its supply process and is capable ofhandling further production increases.
Air purifiers are our principal product in Japan in terms ofsales, and we anticipate that production in fiscal 2010 will beapproximately the same as the previous year, mostly targeting
the Japanese market. In addition, we will make the most of ourautomotive technologies to concentrate on home-use components and construction machinery.

Financial Report■ We have expanded production of mobile phonecases at our Chinese subsidiary

LED dynamo light

Air purifier

Fiscal 2009 (consolidated)
Net Sales: 7.4 billion yen
Percentage of Sales: 1.5%

TOYODA GOSEI REPORT 201012

Report by Region
We will make optimum use of our global
network to develop the world's top level
manufacturing and supply system, so as tomeet the needs of the global market.
Business Report

Regional management company
Manufacturing company
OthersNorth America

Asia and Oceania

Management Report

Asia

Social Report
Environmental Report
Financial Report
Corporate Data

Strengthen our sales to US automotive manufacturers,
and maintain and advance a business platform toadapt to environmental changes

Supply high-quality products with excellent
cost-performance amidst aggressive
market trends

The economy became sluggish following the financial
crisis that originated with the Lehman Shock of fiscal
2008. Although there were some indications of a gradual
recovery towards the latter half of fiscal 2009, thanks to
the implementation of various economic measures, theeconomic environment remained generally severe. Vehicle
sales in the US in fiscal 2009 fell to the low level of 10
million, and some major automotive manufacturers andmany parts manufacturers faced bankruptcy or management crises. U.S.-wide unemployment levels evensurpassed 10% at one point.
Amidst this difficult economic environment, we strove tostrengthen sales of products that make the most of our
independent technological capabilities in fiscal 2009, andworked on expanding sales for US automotive manufacturers in addition to those in Japan. Furthermore, relatedsites in the U.S., Canada and Mexico worked together tobuild a business platform capable of adapting to environmental changes, such as promoting restructuring projects
for the body sealing business and optimizing the production layout for all of North America.
Although the management environment continues toremain unclear in fiscal 2010, we are making developments
and proposals for new products and new technologies that
anticipate the needs of the market. At the same time, weare promoting business activities that will earn us the trustand satisfaction of our customers, by aiming to improve
the quality of all North American groups through activities
to refine manufacturing. In addition, ‘One Team TG’activities have the objective of making our corporation one
that is trusted by all stakeholders, through revitalization ofcommunication between employees and sites, and further
enhancing our social contributions for the local community.

The effects of the worldwide recession that began in thelatter half of fiscal 2008 had reached the Asian region by
the end of the fiscal year, and fiscal 2009 began withseemingly no light at the end of the tunnel. Various
automotive manufacturers and automotive parts manufacturers had previously been planning to invest in evenfurther production increases, boosted by the momentumof a record number of vehicles produced in fiscal 2008.
However, these plans had to be either cancelled or
postponed following the cooling of the global economy.
From mid-fiscal 2009, the market gradually began toshow signs of recovery, and from the third quarter,
Thailand’s market was booming. However, shaken by theexperience of a major economic downturn, demand in themarket shifted with increasing vigor to environmentallyfriendly ‘eco cars’ and ‘low cost vehicles'. In order toprovide high-quality products with excellent costperformance under these kinds of aggressive market
conditions in fiscal 2010, we are starting up measures toboost our competitiveness from every angle with the
backup support of sites in Japan. This will involve ➀proposals to lower costs through design improvements;➁ undertaking manufacturing innovation from a global
perspective using the Toyoda Gosei Group’s collective
wisdom; ➂ streamlining proportional costs for materials,
etc.; and ➃ lowering logistics costs for customers andoffering advice on improving assembly of parts to vehicle
bodies, etc. These activities will emphasize our appeal tothe attractive Asian market, which we acknowledge will
become an energy source for the global Toyoda Gosei
Group in the future, and which we aim to proactively
develop.

13 TOYODA GOSEI REPORT 2010

■ Sales by Region

Fiscal 2009

Europe andAfricaAsia and
3.2%
Oceania
17.1%
North
America
20.3%

Japan
59.4%

Fiscal 2008

Year-on-year
rate (%)

Percentage ofnet sales (%)¥billion

Percentage ofnet sales (%)

Japan

294.1

59.4

320.9

58.7

—8.4

North America

100.6

20.3

101.1

18.5

—0.5

Asia and Oceania

84.4

17.1

96.6

17.7

—12.7

Europe and Africa

15.9

3.2

27.7

5.1

—42.4

Total

495.0

100.0

546.3

100.0

—9.4

Business Report¥billion

Europe and Africa

Management Report

China

TOYODA GOSEI REPORT 2010

Corporate Data

Automotive parts manufacturers were greatly affected byautomotive manufacturers’ sluggish sales and production
cutbacks that occurred as a result of the financial crisis.
Principal countries in the EU implemented incentive
systems as measures to stimulate demand for vehicles.
As a result of these systems, the number of vehicles soldin fiscal 2009 stabilized to 14 million vehicles, which wasapproximately the same level as the previous year.
Despite the difficult environment in fiscal 2009, we
involved ourselves in creating a flexible yet efficient system
suited to market trends, beginning with nurturing ourhuman resources. We also pursued revenue recovery
through standardized work maintenance, including forstaff (Administrative and Technical Divisions), and throughcost reductions, in order to earn the trust and satisfactionof our customers. As a result, we have received highpraise from automotive manufacturers, and the Czech
branch of Toyoda Gosei even received Toyota’s ‘Quality
Award’ and ‘Project Management Award’.
In fiscal 2010, we aim to further increase our presence
amongst European automotive manufacturers, as well asin Japan, and strengthen activities that will lead tobusiness expansion and a larger share of the market. We
also aim to ensure profitability for our newly advancing
interior and exterior parts business, which offers products
such as an instrument panel with highly-pleasing aesthetic
design. In order to survive in this region, which is anticipated to be a highly competitive economic bloc, as
regional economies converge progressively on a global
scale, we will strive for continuous improvement fromevery employee, based on our philosophy of ‘Customer
First’, ‘Quality First’.

Financial Report

Although the number of vehicles sold in China during fiscal
2009 was influenced by the Lehman Shock, decelerating
at the beginning of the fiscal year, the total sold still
exceeded 15.5 million. Having outstripped the U.S., China
became the largest automotive market in the world.
Growth is forecast to continue in fiscal 2010 and has
sufficient momentum to overtake fiscal 2009 levels. Amidst
these conditions, Toyoda Gosei has demonstrated steady
growth in China, and has increased its revenue for fiscal
2009 by 8% on the previous year’s figures. China is thebiggest market in the world for major automotive manufacturers, who are proactively planning new vehicle launches
and model changes. At our sites within China itself, plans
are underfoot for the development and supply of products
for these vehicles. Our business is being managed withthe goal of further increasing sales in fiscal 2010, thanks to
the launch of new vehicles on the market and increases in
the number of vehicles sold. As our sales grow, we planalso to increase the level of customer satisfaction, prepare
for production development and strengthen activities tolower costs. Accordingly, we have established an Environmental Division to ensure compliance with China’s environmental laws and regulations, which continue to become
more stringent every year, as well as to strengthen theexisting functionality of supervisory sites. This also helps topromote our corporate philosophy of respecting theenvironment. We are also establishing projects to promote
domestic Chinese production as a means of ensuring ourcompetitiveness in the Chinese market. In addition toincreasing the proportion of parts, materials and molds we
procure from within China, we will proactively implement
new technologies in an effort to dramatically improve
production efficiency at each of our plants. Through these
activities, we will solidify our business foundations in the
Chinese market, and become a corporation that has
earned the trust of its customers and trading partners.

Environmental Report

We have created a structure suited to market
trends and have been praised highly by automotive
manufacturers for our earnings recovery

Social Report

Adapting to the market that has rapidly grown
to become the world’s biggest, and promoting
higher domestic Chinese production

14

Corporate Governance
We are planning sound management andorganizational efficiency promotion to create a
corporate structure that can swiftly react tochanges in its environment.
Business Report

Highlights of fiscal 2009

■ Strengthening the auditing implementation internal
checking system in functioning divisions

Management Report

Implementation of auditing in functioning
divisions bolsters internal auditing

Achieving Prompt, Efficient andSound Business Management

33 Participants in Internal Auditing Corporate Training MeetSocial Report
Environmental Report

We are conducting the enrichment and strengthening ofcorporate governance with a goal to enhance sound corporate management of which the most significant matter for
management is the stable improvement of shareholder
value. Therefore, for the sake of meeting the expectations of
all stakeholders including stockholders and customers, weare building and maintaining an organizational system thatcan swiftly and appropriately respond to environmental
changes representing a fair, transparent, and soundmanagement system.

■ Diagram of the Corporate Governance System
Shareholders' Meeting
Appointment

Appointment Appointment

Financial Report

Cooperation

Board of Directors
Directors

Auditing

We have set up the necessary functions which include
shareholders’ meetings, a board of directors, a board ofauditors and accounting auditors as mandated by law . In
addition, we have also developed/established an internal
control system that holds discussions on important issues,checks business operations, reinforces internal auditing, inan effort to achieve; (1) apt business judgments; (2) efficientbusiness operations; and (3) effective supervision andauditing processes. Additionally, we have shortened theterms of directors to one year in an effort to develop a
flexible management system that can respond swiftly tochanges in the business environment and to further clarify
the management responsibilities of directors.

Board of Auditors
Corporate Auditors

Supervision

For the sake of checking whether laws and corporate ethics
are being observed at our company, we are conducting
internal management and supervision based on corporate
laws. The internal auditing that had been conducted by the
Auditing Division was implemented in fiscal 2008 in the
General Administration, Human Resource Development,
and Accounting Divisions, and bolstered a system thatchecks whether auditing is able to observe everything down
to smaller details, such as classified information management methods. There is a mechanism in place to collect thecontent of internal auditing within the functional divisions
into the Auditing Divisions, through which we have built
management/supervisory organizational systems.
The 2nd Audit Training was implemented for the functional
divisions in accordance with the formulation of this system.
This training will also continue to be held after fiscal 2010
with sequential intensity.
We also prepared and operated internal controls related tofinancial reporting based on the Financial Instruments andExchange Law (J-SOX), thus strengthening our continued
governance.

Representative Director

Management Committee
Committees on Various Functions
Internal Auditing Division

Committees
Committee on the ethics ofcorporate activities
Export management committee
Environmental Committee
Central committee on health andsafety and others

Auditing

Various Functions and Business Divisions

15 TOYODA GOSEI REPORT 2010

Accounting
Audit

Internal
Audit

Accounting Auditors & Auditors

Corporate Data

Cooperation
ReportInternal Auditing Corporate Training Meet

Compliance
We aim to be good corporate citizens and are
moving forward with the establishment ofcompliance.

Management Report■ Implementing checks with a checklist for compliance problems■ Supporting compliance for both Japanese andoverseas affiliates

Business Report

Highlights of fiscal 2009

thorough, unified compliance of management and the site.
Also, for when employees are faced with complianceproblems during everyday operations, we have establishedinternal and external compliance consultations services tosolve the problems quickly.
Conversely, we established the ‘Toyoda Gosei Group
Charter for Business Ethics’ as a policy for action from acompliance perspective, which sets out the shared values
and behavioral standards at Toyoda Gosei Group. Everygroup company in Japan and overseas, including Toyoda
Gosei, is formulating a specific behavioral policy based on
this Group Charter. We also established the ‘Toyoda Gosei
Guidelines for Business Ethics’, and have distributed themto all employees.

Ensuring Compliance as
Toyoda Gosei Group

7,500 eligible respondents for Checklist questionnaire(all company employees)
195 Departments (Divisions / Sections) creating a diagnostic report forcomplianceToyoda Gosei is developing various educational activities
pertaining to the strengthening and thorough implementation of compliance by all employees. We will distributeeducational tools within the company, including the ‘Compliance “Juku” Workshop’ company newsletter series andthe ‘Compliance “Tsuushin” Communications’ company
message board, in addition to conducting compliancetraining for company executives and for level- and riskspecific employees.

Corporate DataTG
management
Support for creating a
Support for creating aphilosophy
TGcompliance system
Domestic compliance system
Overseas
Affiliates
Affiliates‘Toyoda Gosei
Group
Charter for
Business Ethics’

Educational activities to strengthen andthoroughly implement compliance

Financial Report

Corporate activities‘Toyoda Gosei Guidelines
for Business Ethics’

Environmental Report■ Our approach towards compliance‘Toyoda Gosei Group Charterfor Business Ethics’

Social Report

Toyoda Gosei strives for truly comprehensive compliance,and seeks to ensure that each and every employee
complies with all laws and regulations not only from thestandpoint of obeying the law but also from the standpointof corporate ethics.
In 1997, Toyoda Gosei established a ‘Committee on the
Ethics of Corporate Activities’ with the President serving as
Chairman and all company executives as members. In fiscal
2009, to replace the legal liaison officer whose role had
been mainly to disseminate information within Divisions, aCompliance Advocate was assigned to each Division to
independently lead its compliance activities and to ensure‘Toyoda Gosei Guidelines
for Business Ethics’

Composed of allcompany executives‘Committee on the
ethics of corporate
actions’

Implement legal
affairs/compliancetraining

Composed ofCompliance Advocatesfrom each Division‘Company-wide
Compliance Advocates’
Meeting ’Ensuring compliance

Compliance training

Established bothwithin and external
to the company
Complianceconsultation servic
Sexual harassment
consultation service

TOYODA GOSEI REPORT 201016

Business Report

In fiscal 2009, in place of our usual annual ‘complianceadherence rate survey', we created a check list for each
Division to identify any compliance-problems and asked all
employees to respond to a questionnaire. Based on thequestionnaire results, we were able to grasp the overall
trends, and when necessary we conducted further
interviews in order to ascertain the cause of any problems
and prepare appropriate countermeasures. Each Division or
Section created its own diagnostic report for compliance,
enabling them to make their own individual plans for
improvement, and to implement approaches for eliminatingproblems. By refining our approach to compliance in thisway, we are ensuring it is thoroughly understood.

Risk Management
We strive to strengthen risk management
through employee training, product assurance
activities, information security measures anddisaster countermeasures.

Highlights of fiscal 2009

■ Revision of the Crisis Management Guidelines■ Preventing leaks of confidential information
through equipment management

Management Report

System for Risk Management

Social ReportCompliance activities take place in every Department

Environmental Report

Support for promotion of independent
activities in each of our Group companies
Interviews conducted at 10 domestic affiliate companies
Questionnaire surveys given to 34 overseas affiliate companies

Financial Report
Corporate Data

In fiscal 2009, we focused our energies on building acompliance system that was suited to each of the companies throughout the entire Toyoda Gosei Group, and offeredsupport to promote the development of independent activities for each group.
We conducted liaison committees with representatives incharge of compliance at each of our domestic affiliates toascertain the level of awareness of compliance, and to get
an idea of the individual situations at each company. We
also visited companies separately to conduct interviews andlisten to opinions. Based on these interviews, we conductedcompliance training for the managerial workers of eachcompany. We provided information and advice to enrich thecompliance functionality of each company and to promote
revitalization of activities.
As for our overseas affiliates, behavioral policies were
formulated to suit the laws, culture, customs and individual
circumstances of each relevant region. Based on thesepolicies, we also checked the state of compliance activities
at each company via a questionnaire survey.

Toyoda Gosei is working to ensure the company can adapt
to corporate risks that threaten management or businessitself. For the management of confidential information inparticular, we established ‘Security Management Representative Meetings’ composed of the directors of each Divisionand based on the ‘Committee on the Ethics of Corporate
Actions’ to thoroughly implement information security
measures.
With our ‘Crisis Management Guidelines’ and ‘Operative
Standards for Information Systems Security’ as a guide, weconcentrated in fiscal 2009 on strengthening practicalmeasures and lifting the awareness of all employees about
information security.

Revision of the Crisis Management Guidelines
The ‘Crisis Management Guidelines’ for employee behavioral policy on crisis management were also revised in fiscal
2009 to include highly practical content, such as adaptability for changes in social conditions and the ability to facilitatea fast first response. The latest revision classifies the definition of ‘crisis’ into 3 categories: ‘Life & Health’, ‘Excessive
Loss’ and ‘Loss of Credibility’. Eight examples are given,and instead of the traditional booklet form, the new Guidelines are presented in a file-type format to make it easier toextract the relevant crisis information when needed. The
individual files are stored in a red box and placed in ahighly-visible location in each Division, to facilitate a fast first
response in the event of a crisis.
The scope of application has
also been expanded toinclude our domestic andoverseas affiliates, and Toyoda
Gosei Group is confident in its
preparations to deal with crisis
management as a group.
Crisis Management Guidelines

17 TOYODA GOSEI REPORT 2010

Heightening awareness of information security
and strengthening response measures

Measures for dealing with H1N1 Influenza(‘Swine Flu’)

135 multifunctional devices with card readers

Hard
ware
Soft
ware

Prevention formalicious
unauthorizedleaks● E-mail security reinforcement● Inspection for removed materials(Inspect twice monthly)● Increase in the number of surveillance cameras● Wire setting for fixing PCs· Lap-Top PC · Desk-Top PC · external HDD● Review of Security Management Act● Simultaneous inspection of security consciousness
for all employees● In-house education of security management● Onsite inspections for each division■ Organizational Chart for Emergency Disaster
Countermeasures
Emergency
task force

Task force setting level
decision meeting

Moral measure● Acquisition and Monitoring system usage records
and access records.
● Prevention for unauthorized accessCorporate Data

Soft
ware

● Reinforcement in access privileges to the file server● Restrictions on things taken out / enhancementof check function

Financial Report

Hard
ware

● Data encryption of all PCs

Our Disaster Countermeasures are founded on the conceptsof ‘Life Comes First’ and ‘Quick Recovery’. For large-scale
earthquakes in particular, we are strengthening anti-seismic
reinforcement of buildings and equipment, and enhancing ourdaily monitoring activities. We have also established an‘Emergency Earthquake Reporting System’ at each site toensure employee safety and safe evacuation. We haveformulated the ‘Toyoda Gosei Disaster Response Manual’ toanticipate emergency situations, and every year we conduct
practical training based on response procedures to encourage employees to ‘remember what to do by actually doing it’.
We are working to ensure that accurate fast, first response
measures and recovery response measures are familiar to,
and firmly entrenched in the minds of, our employees, andare striving to improve these further. These include utilizing asystem that can verify the safety of approximately 20,000
employees and their families at the fast, first response stage,
while at the recovery stage, this involves building and utilizing
a database containing the information required for a prompt
recovery, such as locations for substitute facilities and thetechnical skills of employees.

Environmental Report

Implementation● Preventing documents from being inappropriately
removed or discarded, through multifunctional
device ID authentication of employees.

First break/restoration and early response
from the Disaster Response ManualSocial Report

Prevention for
negligent
leaks

DivisionManagement Report■ Examples of Measure Enhancement

The spread of H1N1 flu in fiscal 2009 caused panic aroundthe globe with concern about the influences of infection.
Toyoda Gosei took steps to prevent infection by deploying
face masks to its associate company in Mexico, the city inwhich the first H1N1 outbreak occurred, as well as to its
associates in Asia once the flu had also spread there.
Internally, ‘Support Guidelines’ were distributed to all employees to promote better knowledge, and we encouraged
precautionary measures at meetings, events, or whenever
there was a gathering of people, by wearing masks andwashing hands with disinfectant. From autumn onwards, a
specific person was designated at each plant to be in chargeof dealing with H1N1 measures, in order to respond promptly
as needed while part of the organization was also reviewed.
We also offered subsidies for vaccinations, and implemented
a preventative system throughout the company.

Business Report

The threat of information security problems do not largely
originate "externally" but "internally" within the company orfrom business connections, and the majority of them arecaused by people. Accordingly, we are working on theformulation and observation of rules, such as for handlingand storing confidential information in order to ‘deal withpeople’. We are also planning a more stringent observationof computer use through software license management andstate checks from operations logs, as well as the improvement of employee moral awareness. To this end, we distribute security news throughout the company and introduce
case examples relating to information security at othercompanies to encourage caution.
In fiscal 2009, to prevent printed documentation that could
be lying around from being removed inappropriately or
accidentally carried off by someone else, we installed
employee ID card readers on multifunctional devices, sothat only the person operating the equipment would be able
to leave with the printed materials.

Warning &Monitoring
Headquarters

Starting team
(Investigative
team)
Districtself-defense
disasterprevention teamLife support
task force

Production restoration
task force

District task force

Staff support squad

Local support squad

Rescue and aid squad

Safety confirmation squad

Information squad

Quality assurance squad

Material securement squad

Utility squad

Process restoration squad

Logistic squad

Progress management squad

Customer response squad

TOYODA GOSEI REPORT 201018

Business ReportManagement ReportSocial Report
Environmental Report

Relationship with ourCustomers

We aim for production process quality
control in all operations, including for
office staff, and act accordingly

We offer attractive products and service basedon the concepts of ‘Customer First’ and ‘Quality First’.

All employees at our company take action based on theprinciple of ‘Customer First’ and we aim for production
process quality control in every one of our operations.
Production process quality control means that "quality isbuilt in during the production process", and is the idea on
which all our work is based.
Working from the idea of "No defects shall be tolerated inany production process to ensure that there will be no
defects in post-production (i.e., in the product given to
customers)" in manufacturing, we have as our goal a robust
design*2 to prevent against environmental changes andmanufacturing scattering, are promoting the expansion ofquality engineering throughout our entire company, and areof course aiming for a zero defect production process forour mass produced goods as well as a defect-free production process from the very first day of production for a new
product. Furthermore, we are expanding our ideas regarding production process quality control and know-how thathave become firmly established on the assembly line
(Manufacturing Division), to include the work of office staff(Administrative and Technical Divisions), and are striving to
improve operations throughout the entire company with theobjective of attaining production process quality control inwhich each individual ‘can make judgments on-site about
work quality.’

Highlights of fiscal 2009

■ Improve the quality of work performed with an approachfor Production Process Quality Control, including forstaff (Administrative and Technical Divisions)■ Exhibited at the 41st Tokyo Motor Show 2009
Basic Policy for Quality
Everyone shall bear in mind the concepts of "Quality
First" and "post-manufacturing = our customers"
and utilize mutual cooperation to provide excellent
products and services that will win the trust andsatisfaction of our customers.

A quality assurance system that is consistentfrom development through production

Financial Report

At our company, we aim to "provide appealing products
and become a global system supplier that will truly impress
our customers."
We conduct our business activities under a consistentquality assurance system, from development through to
production, based on our Basic Policy for Quality.
Specifically, all our plants have obtained ISO9001 and
ISO/TS16949 certification which is the international
standard of quality management system.
Also, each plant has its own quality control goals based on
the fundamental principles of TQM*1, and strives to produce
attractive products.

Corporate Data

*1 TQM stands for ‘Total Quality Management’ and means ‘activities that heighten the
dynamism of people and organizations’ through ‘constant improvement’ and‘participation by all’ based on the principle of ‘Customer First’, in order to improve thequality of management as well as of goods and services.

■ Fundamental principles of TQM

Customer first*2 Strong product designs that come with little unevenness in quality and insusceptible tousage environment.

Exhibition on production process quality control

Making observational rounds at plants■ Production process quality control that aims
for a zero defect production process· Improvement ofdrawing quality· Robust design· High reliability
design that iseasy to make

DesignProcurement

Adopting excellent
design drawing
practicesHigh-Quality
Components &Materials

Production
Process Quality
Early
ProvidingIdentification
Control
production
Early
conditions Production
Market Response

Preparation

TQM
Constant
improvement

19 TOYODA GOSEI REPORT 2010

Maintenance &Management
Having everyone
participate

Production· Establishingrobust production
conditions· Automation

Sales activities responsive to customer needs■ Award for quality in fiscal 2009
Award names

Awarded company

Origin of commendation2009 Quality & Delivery AwardTGFSUS

Honda De Mexico

2009 Quality & Delivery Award

TGKY

Honda De Mexico

Award Of Quality 2009

TGAS (TGT/TGRT) Mitsubishi Motors Thailand

Launch PerformanceAward RAV4 and RX350

TG MINTO

Toyota Motor Engineering &Manufacturing North America (Toyota
North America Supervising Sites)

Quality, Certificate of Recognition TGCZ

Toyota Motor Europe

Supplier Performance Award 2009 TGCZ

Toyota Peugeot Citroen Automobile
Sichuan FAW Toyota Motor Co.,Ltd.

Quality Cooperation Award Foshan TGR

Guangzhou Toyota Motor Co., Ltd.

Quality Cooperation Award Foshan TGP

Guangzhou Toyota Motor Co., Ltd.

Quality Cooperation Award Zhangjiagang
TGSS

Guangzhou Toyota Motor Co., Ltd.

Zero PPM defective parts delivered TGKL

Toyota Kirloskar Auto Parts

TGSSI

PT. Toyota Motor Manufacturing
Indonesia

Zero Defects Award

Toyota South Africa Motors

Toyoda Gosei

Toyota Motor Corporation‘Case Study Exhibition’ Award for
Excellence for fewer unpaid repairs
and activities to improve supplierquality (fewer overseas sites)

Toyoda Gosei

Toyota Motor Corporation‘Excellence Award’ for proposal
Toyoda Gosei
to reduce quality cost losses

Toyota Motor Corporation

Excellence Appreciation
Award (Quality Division)

Honda AccessToyoda Gosei

Financial Report

Excellent Quality Control Award TGSA
‘Case Study Exhibition’ Award for
Excellence for fewer unpaid repairs
and activities to improve supplierquality (fewer overseas sites)

Environmental Report

Zhangjiagang TGPHigh Quality Award

Social Report

We are promoting production process quality control for all
manufacturing processes of safety-critical parts that relate
to a vehicle’s basic functionality. In addition, a full-time
auditor from the Quality Assurance Division will regularly
conduct process audits to ensure that correct management
continues to be maintained. We established a systemthrough which whenever quality problems occur in themarket information is conveyed through automotive manufacturers, then swiftly passed on to the relevant internal
divisions, after which causes are ascertained through suchmethods as analyzing recalled products, and thenmeasured to prevent a reoccurrence of the problem.
At times when it is difficult to find the cause of a problem
and its solution at our company, we team up with the quality

Our products are delivered to automotive manufacturers ofvarious countries throughout the world and support thebasic performance of the automobile. Each manufacturercommends an excellent supplier every year and Toyoda
Gosei has received commendations from a large number ofclients.

Management Report

Monitoring the manufacturing process and market
quality, and promoting measures to adapt

Customers praise us as a superior supplier
Business Report

The role of the Sales Division stands at the front lines of ourcompany. They listen to needs and development information from key members in‫ޓ‬technology and improvement,
and connects those needs with sales promotion. While
cultivating an amicable relationship with customers, wehave collected and analyzed diverse information such asnecessary matters and problems essential to customers.
While sharing that content with relevant internal departments, we respond to the diverse needs from customers
and make unique proposals to build a relationship of trustwith those customers.

divisions of automotive manufacturers, conduct tests using
test vehicles etc., and work to promote a swifter and more
precise prevention of reoccurrences and preemptive
measures for our next product.

Activities for improving market reliability

Corporate Data

Exhibited at the 41st Tokyo Motor Show 2009
Toyoda Gosei held an exhibition at the 41stTokyo Motor Show 2009, which took place at
the Makuhari Messe in Chiba Prefecture from
October 24 through November 4. Our display aimed topromote safety and comfort, and visitors to our booth had theopportunity to try out our Airbag Simulator, which gave arealistic experience of a collision. Visitors could also see our'cockpit’ of the near future, driven by our unique technology,
and our pedestrian protection concept model car, which isequipped with airbags on the vehicle’s exterior to offer protection from a pedestrian’s perspective.
We also exhibited various environmentally-friendly products,
such as a door made from resin and a hollow-core steering
wheel made from carbon fiber resin. All the lighting used at ourbooth was switched to LEDs, and we tried to emphasize ourappeal through our products to as many people as possible.

TOPICS

Airbag Experience Simulator

Hollow-core steering wheel made fromcarbon fiber resin

TOYODA GOSEI REPORT 201020

Relations with our
Employees

Business Report

With "Humanistic corporate culture" and "Safety
comes first" as our fundamental principles, we
aim to create a healthy workplace where
employees can work with peace of mind.
Highlights of fiscal 2009Management Report■ Enhanced support for child-raising■ Promoting employment of people with disabilities■ Promoting a switch away from inviting lecturers
from outside the company towards encouraging
people from within the company to act as lecturers

Developing human resource who canthink and operate independently

Social Report
Environmental Report

At Toyoda Gosei, our employees share a sense of values
that state ‘as a corporation we are only as strong as ourhuman resources and these resources represent our true
products’. We aim to create an environment in which weare always nurturing our human resources at work.
The center of human resource development is on-the-job
training. For the sake of planning and a fostering humanresource development consciousness we are concentrating
our efforts on the preparation of a human resource systemand the creation of a training structure.

OJT, which is the foundation of humanresource development/Humandevelopment in the workplacethrough work experiences thanks tomanagers' efforts

Financial Report

Group
Education

Corporate Data

Actively identify and promoteable personnel from ourworldwide offices and plants
and from younger age groups(opportunities for people in their
30's to be promoted)

On-the-Job
Training(OJT)

Personal
GrowthPromotion

Position
Rotation

Prearranged position rotations tofoster human resource
development and invigoration(Career path, growth as
multi-skilled technicians)

Manufacturing Experience Workshop

Self-InitiatedInterview
System

Evaluation
andMerit System

A shared understanding of"challenges for
professional and personal
growth" throughcommunication between
managers and workers

An evaluation and merit system
based on skill and performancethat is both highly rational andeasy to grasp

Training to expand production and encourage internal lecturers

With globalization advancing, our goal is to enable all office
staff members, including managerial workers, to be able tocommunicate in basic everyday English. We have been
holding English correspondence courses, mainly targeted atyounger personnel, since fiscal 2003. In fiscal 2009, we
increased the number of one-day training sessions andimproved training content to include more practical applications, in order to strengthen the English language abilities of
those preparing to be transferred overseas. We alsoenhanced the learning of other local languages, such as
Spanish, Czech and Hindi, toassist site managers posted
in regions speaking theserespective languages to beable to get by with a basic
level of everyday communication.
Language training■ Training Structure
General managers/
Division leaders
GL/Section
leaders

Management training for generalmanagers/division leaders
Management training for GL/section leaders,
problem-solving mentoring training

Subsection
leaderManagement training for
subsection leadersTeam
leaderTraining for team leaders

Generalemployees

3 level training, problem solving
basics trainingNew
employees

Training for new employees*3 Global Production Center

Language training

Basic technical Overseas-related
education
training
Education for transferred/local employees

Training according to employees'
positions

GPC*3 activities

Position
title

Educational system for skills

In order to advance our work further, we conducted training
for all general office-related employees to ensure that
‘ P ro b l e m re s o l u t i o n a p t i t u d e ( P D C A b a s e d w o r kadvancement)’ was firmly entrenched in all tiers of thecompany.

Language training attracted 97 participants for English and26 participants for Chinese

Educational system for engineers

Approximately 600 people participated in our problem resolution training
11 participants in the TPS Professional 2-year Growth Training
56 participants in the TPS 3-month Short-term Intensive Training(including suppliers)

21 TOYODA GOSEI REPORT 2010

*1 Toyota Production System*2 The ‘2S’ = ‘Seiri and Seiton’, Japanese for‘sorting and systemizing’.

Learning a diverse range of local languages■ Human Resource Systems
A system of group
education that is
separated by position
and function(Problem resolution,
management)

In fiscal 2009, we asked Level 2 (or higher) managerial
workers to participate in our training as practical advisors,
where they imparted their knowledge directly based on theirown personal experiences. Directors also participated in ourmanagerial training, ensuring training with high-quality
content.
The TPS (Toyota Production System)*1 Professional 2-year
Growth Training that began in fiscal 2008 entered its
second stage (2nd year) in fiscal 2009, and content was
expanded on a practical level. Administrative staff also
undertook a 3-month training course in order to ensure they
were thoroughly familiar with the TPS philosophy.
We a l s o e s t a b l i s h e d a ‘ M a n u f a c t u r i n g E x p e r i e n c eWorkshop’ for new employees. By switching from aclassroom lecture-type training course to one that is
experience-based, we have heightened the interest in
sectors such as ‘manufacturing’ and ‘vehicles’ , while also
ensuring familiarity with ‘safety, discipline and the ‘2S’ *2’.
In order to continually maintain our development of humanresources at Toyoda Gosei, we made efforts to switch fromlectures by visiting external instructors to internal lecturers infiscal 2009, and our employees were able to give guidance
directly based on their own rich experiences. Sharing
experiences and knowledge
gained on-site at lectures
imparts practical knowledge
to the audience and theylearn solid ways for dealing
with various situations,which is invaluable.

Internal support from the company toprovide a stable Work-Life balance

Promoting support for child-care and helping
families to understand more about our workplace

Creation of a system that enables workwith peace of mind after retirement
Starting in April of 2006, we established the "Retiree
Reemployment System" and are creating a system thatenables work with peace of mind after retirement as well.

■ Changes in Reemployed Retirees
Reemployed person
Retirees(People)200

Persons scheduled to be reemployed

100
0
'06

'07

'08

'09

'10

(Fiscal year)

Creating a workplace where people with disabilities canestablish themselves and feel that their job is rewarding

Social Report

Toyoda Gosei proactively employs people with disabilities invarious practical capacities. In fiscal 2009, we boosted ourrecruitment to ensure levels above the 1.8% employment
rate required by law. We developed jobs in our various
workplaces to suit the different capabilities of different
people, and backed this up with educational support. We
also resolved various issues in each Division and promoted‘barrier free’ (wheelchair-accessible) conversions within theworkplace, to create working environments in which people
with disabilities can easily establish themselves.

Environmental Report

In fiscal 2009, we held a ‘Networking Event for Working
Parents’ targeting employees who were on childcare leave.
Various daily concerns and problems related to raisingchildren were resolved at this event. It was held with theobjective of enabling employees to exchange ideas andopinions amongst themselves, while some employees who
had returned to work after taking maternity (paternity) leave
were also on hand to give advice. We hope to hold more ofthese events in the future as a venue for working parents tocontinue networking.
We also held the ‘TG Family Day’ to invite the families of
employees to come and visit the workplace so that theymight understand it better. This event comprised a tour
around the workplace and company facilities for thefamilies, who also had an opportunity to try their hand at
manufacturing. We hope that we can build stronger
relationships between the company, workplace and families
by familiarizing families with our company first-hand.

*4 Diversity refers to the utilization of human resources irrespective of race, nationality,
gender or age.

Management Report

42 participants in our Networking Event for Working Parents
270 participants in TG Family Day

Toyoda Gosei has established a system to encourage
employees who are of retirement age, or who havedisabilities, to continue working in stable jobs if they wish.

Business Report

While considering the "work/life" balance of each individual
employee, we are planning the enhancement of a systemthat enables employees to choose their way of working. We
are also offering assistance such as the introduction of ashort-time working system and the support of a day nurseryon national holidays which fall during our operating days.
And we support working fathers and mothers, allowing
them to work with greater peace of mind and motivation.

Promoting diversity *4

Financial Report■ Changes in the employment rate of disabled people
(%) 3
1.9%
2
1

Legally required
employment rate of 1.8%
'00

'01

'02

'03

'04

'05

'06

'07

'08

'09 (Fiscal year)

Corporate Data

Planning mental and physical health support
Networking event for working parents

TG Family Day

Mental and physical health are the major pillars of employee
health management, and we are considering various
policies to plan mind/body health maintenance andpromotion within the company.

■ Health Educational Structure
Plant managers
General managers
Division leaders &Assistant Managers

Physical healthmanager
education

Section leaders
GL

Supervisors

TL &Subsection
leadersTeam
leaderMental healtheducation for
management
directors

Good life
seminar 35(

Physical healtheducation at 35
years old

Mental healthleaders
education

Mentalhealth(follow-up)
education

Stresseducation)

General employees

TOYODA GOSEI REPORT 201022

Continuing mental health education for
management directors

Business Report

To promote efficient workplace operation and smoothcommunication, we regularly held mental health education
sessions in fiscal 2009 for each employee position, with afocus on newly appointed management directors, division
leaders, and assistant managers, all of whom can besusceptible to stress. A qualified clinical nurse at each site
works to enhance counseling services. With the number ofconsultants declining, the results are steadily beginning toshow.

Raising awareness of healthcare

Social Report

In fiscal 2007, we held the ‘Good Life Seminar 35’ for
employees aged 35, to provide education about keeping
healthy in their daily lives and to prevent lifestyle-relateddiseases.
In fiscal 2009, we held a ‘Happy Wedding Seminar’ targetedat young newlywed employee couples that had been married
for less than a year. Advice on correct eating habits andexercise instruction was provided by a nutritionist and ahealth nurse, with the objective of preventing obesity, aleading cause of lifestyle-related diseases.

Environmental Report

Promoting activities to achieve ourgoal of zero accidents

Financial Report

Under the direct leadership of our president, who is theGeneral Health and Safety Manager of the whole company.
We are driven by two powerful forces - the "Division for theDevelopment of a Safe Workplace" and the "Division for theDevelopment of Safety Aware Personnel". We are actively
working to achieve our goal of zero accidents.

Creating "Safety Aware Personnel" is an awareness building
activity that focuses on cultivating individuals capable ofidentifying possible "threats" as risks by checking all
employees and providing guidance to those who need it withre s p e c t t o t h i s m a t t e r. I n fi s c a l 2 0 0 9 , w e c re a t e d'Safety-focused activities’ to investigate and resolve problems
or issues relating to health and safety in the workplace, forindividual on-site units of subsections and teams.
Twice a year, each manufacturing division is evaluated for its
approach to safety, knowledge, ability to get things done, andability to instruct workers. Those who excel in these fields are
selected to be ‘Safety Excellence Managers’ and given publicrecognition. By the end of fiscal 2009, 26 managers and 34
supervisors had been recognized for this honor.

■ Main Activities in Fiscal 2009
Implementation
Development of Safety Aware Personnel Development of a Safe Workplace

Management Report

183 participants in the Good Life Seminar 35
9 participating couples in the Happy Wedding Seminar

We implemented ‘Safety-focused activities’ for the
independent resolution of health and safety issues

1● Promoted ‘Safety-focused activities’ in each workplace2● Rigorously ‘visualized’ each rule decided upon3

● Visited plants to make observational rounds led by a Safety ExcellenceManager to determine all unsafe behaviors and/or locations in a single
sweep

4
5

● Revitalized safety activities by announcing and rewarding good caseexamples● Expanded ‘Genchi-Genbutsu (actual materials at actual locations) KY
education to include Technical GL and TL

6● Checked the current state of STOP7, lockouts and risk assessments
using ‘Genchi-Genbutsu’ and alleviated any problem points

7● Improved the sense of safety with regard to ‘abnormal or non-constantchanges’ and prevented disasters before they happened by taking
preemptive action

8● Completed the hardware measures for preventing serious accidents thatwere initiated in fiscal 2008
● Verified the role of Functional Headquarters to ensure an immediate
response in the event of an earthquake, such as collection and conveyanceof (earthquake) information. Reviewed the disaster prevention system■ Changes in the Rate of Work Accidents(rate of injuries resulting in lost work time)
Rate of injuries resulting in lost work time =Casualties accompanied by lost work time×1 million

Total work hours

Acquisition of occupational safety management
systems by 23 domestic and overseas sites

1.5
Whole manufacturingindustry
1.07

1.0

Corporate Data

In "Develop a Safe Workplace" we aim to have a workplacewith none of the dangerous aspects or causes of danger
that are linked with accidents and are tackling the making of
our facilities safe, forklift-free activities. Also, we are moving
forward with activities to acquire the OSHMS certification indomestic, and OHSAS certification in overseas, a common
standard for occupational health and safety management
systems. As of fiscal 2009 the sites written below haveattained this certification.
*1 Occupational Safety and Health Management Systems*2 Occupational Health and Safety Assessment Series■ The state of occupational health and safety
management systems acquisition
ToyodaGosei● Heiwacho Plant● Bisai Plant

Domestic
Affiliates● Ichiei Kogyo Co., Ltd., ● Hinode Gomu Kogyo Co., Ltd.,● Chusei Gomu Co., Ltd., ● Hoshin Gosei Co., Ltd.,● TG Maintenance Co., Ltd., ● TG Logistics Co., Ltd., ● TG Opseed Co., Ltd.

Overseas
Affiliates● Fong Yue Co.,Ltd.
● Bridgestone TG Australia (Pty) Ltd.
● Tianjin Toyoda Gosei Co., Ltd.
● Tianjin Star Light Rubber and Plastic Co., Ltd.
● Toyoda Gosei Czech,s.r.o.
● Toyoda Gosei (Thailand) Co.,Ltd.
● TG Kirloskar Automotive Pvt.Ltd. ● Toyoda Gosei (Tianjin) Precise Plastic Co., Ltd.
● Toyoda Gosei Texas,LLC● Toyoda Gosei (Foshan) Rubber Parts Co., Ltd.

23 TOYODA GOSEI REPORT 2010

● Haruhi Plant● Nishimizoguchi Plant● Inazawa Plant● Morimachi Plant

Transportationequipment industry
0.54
Toyoda Gosei

0.5

0.188

0
'00

'01

'02

'03

'04

'05

'06

'07

'08

'09 (Fiscal year)

Create a workplace that is easy to workin with the cooperation of labor unions
Based upon our fundamental philosophy on labor management
relations, "establishing mutual trust and sharing responsibilities
between employees and management" we hold discussions
with the labor union on wage, working environment, working
hours and other general working conditions.
We regularly hold meetings with the "Central Labor-Management
Council", the "Divisional Labor-Management Council", and theDivisional Labor-Management Council. The division chiefs
themselves and union members directly discuss matters closely
related to the workplace and aim to create a workplace in which
it is easy to do one's job.

came to 14.2 billion yen, a massive 260.8% increase on theprevious year’ s figure of 3.9 billion yen.
As a result, we decided to distribute an annual dividend
from surplus of 36 yen per share.

Relationship with our
Shareholders
By increasing corporate value and proactively
disclosing information, we strive to enable
understanding of our company's achievements
and ways of thinking.

株主のみなさまへ

第87期業績のご報告2009年4月1日から2010年3月31日まで

Business Report

Report on Achievements

Highlights of fiscal 2009

■ Enriching the IR information available on our website■ Changes in Dividends■ Main IR Activities

(yen)
60

Targeted person

46.0
36.0
30

36.0

IR activities

Domestic institutional
investors
Securities Analysts

Individual discussions,financial briefings

Overseas institutional
investors

Individual discussions,participation in IR events‘Toyoda Gosei Report’issued

26.0

0

'02

16.0

18.0

19.0

'03

'04

'05

'06

'07

'08

'09 (Fiscal year)

Financial
Japanese
Individuals andinstitutions
companies, etc.
othersTreasury
Financial products
Foreign investors,
stockstraders
etc.

0.5

0.8

27.3

31 March,
2009

31.5

49.1

14.9

49.1

20

40

Dissemination of financial
and IR informationby the homepage

Position
title

7.4

11.9 6.9

0.1
0Plant tours held after theshareholders' general meeting
Published "Report on
Achievements"■ Distribution of Shareholders

31 March,
2010

Individual shareholders
and investors

Corporate Data

13.0

Financial Report

At our company, through regular information dissemination
through our homepage and IR tools as well as thepromotion of financial briefing and IR events, we strive forsuitable information disclosure.
In fiscal 2009, we made efforts to enrich content pertaining
to IR information on our website.
Twice every year we hold explanatory briefings for
institutional investors and securities analysts to report on
our financial statements. We post the documentation fromthese meetings, together with the relevant financial
information, on our website to ensure appropriate
disclosure. We are also proactive about holding individual
discussions, and are happy to provide information toinvestors, both within Japan and overseas. We also
participate in IR events including for overseas institutional
investors, and are striving to achieve corporate recognition
as an open corporation.

Environmental Report

Although increased customer demand in LED products forcomputers led to a dramatic revenue increase for
optoelectronics parts, which form a portion of our
non-automotive parts businesses, the negative effects froma drop in the number of cars produced in the first half of the
fiscal year greatly affected our staple business of automotive
parts. Overall earnings came in at 495 billion yen, which
represents a 9.4% decrease on the previous year’ s figureof 546.3 billion yen.
As for profit, Toyoda Gosei reaped the benefits of its
stringent efforts to reduce total costs, such as shaving
down fixed expenses and streamlining raw costs in theautomotive parts business, particularly in the Japan andNorth American regions. This, together with increased sales
in our non-automotive parts businesses, especially in
optoelectronics parts, boosted our overall ordinary income
to 26.5 billion yen, an increase of 118.6% on the previous
year’ s figure of 12.1 billion yen. Net income for the periodSocial Report

Proper disclosure of information

Management Report

Achievements and rates of return

0.5
60

80

100 (%)

Explanatory briefing to report on financial statements

TOYODA GOSEI REPORT 201024

Relationship with our
Suppliers
Our company has strong cooperative ties with
suppliers and look to develop and growtogether.

We also give awards to suppliers who have provided anoteworthy contribution in each field, showing ourappreciation in order to encourage all the suppliers who
participated to continue making progress. At the latest
session, we presented awards in the fields of quality, cost,
technology and the environment.

Business Report

Strengthening our collaboration with
suppliers
Highlight of fiscal 2009Management Report■ With respect to the labor management of suppliers,
we conduct seminars, independent self-checks,
and on-site checks, and promote compliance
continuously.
■ Proactive responses to discussion pertaining to
supplier transactions

Basic Procurement Policy

Social Report
Environmental Report

Our basic procurement policy is to "establish a
procurement platform beneficial to us and carry out
optimum global procurement by presenting relevant
offices and suppliers with procurement plans,
policies, etc. that aptly reflect the changing
procurement conditions as well as the attitudes ofcustomers and competitors, so that we will be able
to produce competitive products." Also, based on
the idea that "suppliers support our company",through the principles of "Genchi", "Genbutsu", and"Genjitsu", we will put our company to work anddevelop supplier structural strengthening policies.

Financial Report

Holding a procurement policy explanatory
session170 companies participated in our explanatory session on procurement policy

Corporate Data

We hold a procurement policy explanation session every April
to indicate the direction we should go toward creating theatmosphere that surrounds our company and to have our
procurement policy for the year firmly understood.
We ask approx. 170 suppliers of products parts, processing,materials, facilities, and metal molds to participate in thissession to discuss "our challenges and actions to be taken"
and, in relation to this year’s "procurement policy", to talkabout safety, quality, quantities, costs, technology, global
expansion, CSR, etc. so we can enhance the level ofcoordination with these suppliers.

Procurement policy briefing session

25 TOYODA GOSEI REPORT 2010

Four times each year, about 100 suppliers participate in a
procurement liaison meeting. The session consists ofcontinuing themes such as developments in production
information, quality control, compliance activities, safety
activities, anti-earthquake measures, security management,
and harmful substances management. In addition toenriching the content of these recurring themes, we aim totake measures to deal with production cutbacks brought onby economic conditions, as well as hold various kinds oflectures, and deepen our relationships with our suppliers.

Tackling quality improvement,compliance
We are taking actions to grow with our suppliers throughstandardized work maintenance, prevention of defective
outflow for quality improvement, and the suppliers’
participation regarding the design of metal molds andproducts and through cost reduction activities geared
toward improving competitiveness.
With respect to the labor management of each company infiscal 2009, we conducted seminars, self-checking, andonsite confirmation to promote compliance even further.
With respect to economic conditions, we are progressivelyo p e n t o d i s c u s s i o n w i t h o u r s u p p l i e r s re g a rd i n gmanagement issues or dealing with any trade-related
problems.

Promoting green procurement
Based on our company's "Green Procurement Guidelines(2nd Edition)" we continue to expand environmental
activities. The structure of the guidelines is divided into 2
components: "environmental management" and "harmful
substances management".
We have produced good results in "environmental
management" by acquiring ISO14001 certification involving
energy saving and waste reduction.
As for the issue of ‘harmful substances management’ , weare working as a team with our suppliers to ensure
appropriate handling of the EU's ELV * 1 and REACH * 2
regulations, as well as VOC*3 management.
*1 End of Life Vehicle*2 Registration, Evaluation, Authorisation and Restriction of Chemicals*3 Volatile Organic Compounds

Involvement in Local
Communities
As regional good corporate citizens we aretrying to have a positive presence in our local
communities.

■ Establishment of liaison points for social contribution in 13 plants and 4 affiliates around Japan

Management Report

Further bolstering social contribution
activities

Business Report

Highlight of fiscal 2009educational activities on traffic safety, our other activities are
based on the 3 cornerstone themes of ‘supporting thesocially vulnerable’, ‘nurturing the development of youths’,and ‘conserving the environment’.
The Volunteer Center was established in January, 2009 withthe objective of enhancing and strengthening our social
contribution activities, and plays a comprehensive role infostering close links with the community and collecting anddispatching a vast amount of information. To support theactivities of this Center, liaison points for social contributions
were established in 13 plants and 4 affiliates around Japan.
Furthermore, a volunteer award system was implemented in
November to encourage our employees and to create acatalyst for expanding our circle of volunteers. This system
is conducted with labor and management cooperation fromthe labor union.

As an automotive parts manufacturer, Toyoda Gosei ismaking efforts to create better local communities thoughinteraction with local residents. Aside from the essential

Social Report

Case study

As part of this education for new employees, 65 high school
graduates visited a welfare facility for the elderly, where they
undertook cleaning activities (collecting trash from the outskirtsof the facility, cleaning windows and wheelchairs). Also, 53
university graduates took 63 people from the local vocational
center for the disabled tovisit the Port of Nagoya
Public Aquarium.
Through this person-toperson assistance, ournew employees wereable to experience firsthand the importance of
supporting people withSocial contribution education
disabilities.

We also carry out social contribution activities at our overseas
sites that are suitable for the respective regions and countries
in which they are located. We implement a wide variety ofvolunteer activities that are suited to the respective social
conditions, such as contributing to educational facilities,
welfare facilities, and community events, as well as
supporting education and sport, community cleaning andphilanthropy. In the event of a natural disaster, we send relief
donations to the victims to financially support their speedy
restoration.
Our daily social contribution activities have been recognized
at one of overseas sites, at TGSSI (Indonesia), where we
received an award for social contribution from Bogor City infiscal 2009. Hereafter, we will continue to implement proactive
social contribution activities in an effort to become a global
corporation recognized by local societies.

Financial Report

Contributing proactively to society at ouroverseas sites

Environmental Report

Implementing social contribution education for new
employees

Carrying out community cleaning activities
More than 1,500 employees participated in community cleaning

Corporate Data

Community cleaning is one of the activities Toyoda Gosei
carries out as part of its environmental conservation activities. In
addition to our traditional cleaning activities that take place inthe vicinity of our plants, we concurrently conducted cleaning ofprefectural roads and rivers at 13 plants and 4 affiliatecompanies around Japan in fiscal 2009, linking together withlocal governments.
More than 1,500 people participated in total, comprising
directors and employees of Toyoda Gosei, employees fromGroup companies,
various employee family
members and local
students. A total volume
of approximately 11t of
trash was collected. By
promoting community
cleaning, we hope insome small way tocontribute to making
our communities easier
to live in.
Cleaning activities

TGSSI (Indonesia)

TOYODA GOSEI REPORT 201026

Case study
Implementing education activities to promote traffic safety

Fully supporting "Ichinomiya Boys and Girls Invention Club"

Business Report

Participants in the club 56 people

We are focusing our efforts on regional traffic safety
educational activities to reduce traffic accidents and protect
vulnerable road users, in collaboration with local governments
and the police. About 3,000 employees participate in the traffic
safety campaigns held each season during periods designatedas "Toyota Group Traffic Safety Month". In addition to
advocating traffic safety at intersections near our plants, inFebruary of fiscal 2009 we conducted the 24th "Traffic Safety
presentation (on Valentine’ s Day)" and informed kindergarten
students of the importance of traffic safety.

The "Ichinomiya Boys and Girls Invention Club" was launchedin 2007; its goal is to provide a setting that will nurture the
dreams and passion for inventions and technology of young
boys and girls leading the next generation. Through theexperience of creating something, we hope to help them growinto creative human beings. Toyoda Gosei has fully supported
these clubs since their establishment, and has participated intheir planning and operation. We also offer our facilities for theworkshops to be held, and dispatch instructors, including ourown retired employees. At the workshops, we also hold otheractivities such as making arts and crafts using everyday
materials, making craft with wood, creating self-styled works
using our company’ s LEDs, or conducting nature observation
meetings. In fiscal 2010, the 4th year since launching theseworkshops, we expect to have 106 children participating.

Management Report

A total of 3,000 people participated in the traffic safety campaign

Social Report

Traffic Safety presentation at kindergarten

Ichinomiya Boys and Girls Invention Club

Environmental Report
Financial Report

Club team players held sports classrooms in each region"Wheelchair doctors" visiting welfare facilities and hospitals

More than 100 workshops were held by our 3 clubs

Approx. 250 wheelchairs repaired annually

Our company is concentrating on the promotion of company
sports; we have a volleyball team named "Trefuerza" in the
V-Premier League, a handball team, the "Blue Falcon", in theJapanese League, and a basketball team, the "Scorpions", inthe Japanese League Division 2.
Each club held workshops in neighboring communities either
prior to the start of their match or during the off season, toencourage interaction with local people through sport. In fiscal
2009, the Blue Falcons supported the first Youth Handball
Workshop to be held in the surrounding regions. Following on
from the previous year, the Blue Falcons and the Scorpions
once again held activities with the disabled, and were active ina wide range of other fields, also.

The ‘Wheelchair Doctors’ is agroup composed of Toyoda Gosei
employees who once every monthvisit venues in Inazawa City, suchas welfare facilities for the elderly
and hospitals. During these visits,
they perform repairs and adjustments such as fixing punctures inwheelchair tires and ensuring thebrakes are not loose. They also help
clean the wheelchairs and ensure
they are rust-free. This activity has
continued for 14 years, and the help
is extremely well-received by thepeople in those facilities.

Wheelchair doctors

Sale of goods made by vocational facilities for the disabled
Corporate Data
Volleyball class

Once or twice a month in the cafeterias of 4 of our plants, wesell breads and sweets such as Madeleine biscuits andcookies, baked by people who attend vocational facilities forthe disabled near our plants (Inazawa City and Ichinomiya Cityin Aichi Prefecture, and Fukuroi City and Kakegawa City in
Shizuoka Prefecture). Previously, only 2 vocational facilities
conducted these activities, but from fiscal 2009, five facilities
have decided to sell goods. Any revenue earned is used tohelp finance the operation of the relevant vocational facility.

Handball class

Vocational facility goods being sold27 TOYODA GOSEI REPORT 2010

Globally Expanding Environmental
Management
Meet the challenge ofhigher goals

Business Report

In order to appropriately respond to environmental problems that have spread to a global scale,
we are further promoting environmental activities
that include the domestic and overseas affiliatedcompanies.
Zero Cases of Non-compliance and Complaints Activities

1991
Set up "Nicely"
Committee

The Toyoda Gosei group's achievementof ISO 14001 certification
2000
Formulation of the third
Environmental Action Plan

Total elimination ofchlorofluorocarbons (CFC)
Treating Humans and the Earth Nicely

1993
Formulation of the first
Environmental Action Plan

1996
Main domestic plants achieved ISO 14001
Formulation of the second
Environmental accounting
Environmental Action Plan
Strengthened environmental education
75% reduction in waste(compared to fiscal 1991)
Total elimination of chlorinated solvents

Strengthened environmental
management system
50% reduction in waste(compared to fiscal 1991)
Total elimination of CFC substitutes
and trichloroethane■ Diagram of the Organization for Promoting
Environmental Action
Product area

Product and Technology Environment Subcommittee[Promotes and manages development of environmentallyfriendly products and technologies]

Manufacturing
area

Production Environment Subcommittee[Promotes and manages measures and technologies thathave zero emissions during manufacturing processes]

Corporate Data

The ‘Environmental Committee’, with our President as
Chairman, discusses and decides upon environmental
policies and other important issues for the Toyoda Gosei
Group as a whole. Our Environmental Committee iscomposed of 3 subcommittees: for products, production
and quality. These subcommittees strive to link together
with other subsidiary organizations such as liaison committees and working groups, to promote environmental
conservation and management activities from their own
professional viewpoints.

Expanding material recycling
Zero landfill waste

Establishment
Environmentallyfriendly manufacturing

Financial Report

Organization for Promoting Environmental Action

Cutting overall CO2 emissions to 5%
below the fiscal 1990 level

Environmental Committee

3 Transmit the information of these efforts broadly
and listen to a variety of opinions for greater
improvement of activities.

Compliance Management

Chairperson: Company President

2 Efforts as a good corporate citizen
Take a progressive approach to local and social
environmental activities as a good corporate
citizen while participating in and offering support
and cooperation for environmental activities withvarious organizations. Educate our employees sothat they participate in environmental activities asa member of the region or community, while
offering them support for their social contribution
and volunteer activities.

2005
Formulation of the fourth
Environmental Action Plan

8% reduction in CO2 emissions per sales unit comparedto fiscal '03 (Consolidated)
5% reduction in materials discarded per sales unit
compared to fiscal '03 (Consolidated)
Continuing our policy of zero landfill waste and zeroincinerated materials
Reduction in emissions of VOC*3 and PRTR*4 substances

Environmental Report

1 Promotion of environmentally-friendly corporate activities
Maintain the awareness that our business is
deeply linked to the environment at every stage
from development, production, and sales todisposal.
Promoteenvironmentally-friendly
corporate activities in cooperation with customers and public administrations as the Toyoda
Gosei Group, including the domestic and overseas affiliated companies and suppliers, as well
as all the business units of Toyoda Gosei.

Developing Global EMS
Total elimination of hexavalent chromium use in products

Social Report

Environmental Policy

Response to Europe’s REACH*1 regulations
Establishing the SOC*2 management for overseas
major sites including China

Management Report

Based on our environmental policy, we areconducting numerous activities with the environment in mind.
In addition to taking the environment into consideration in every process from development throughproduction and sales, we quickly respond tochanges in the law and the needs of our time andare tackling environmental activities as the Toyoda
Gosei Group.
Enhance the environmental awareness of each andevery one of our employees to promote the revitalization of our activities.

Liaison Committee for Environmental Communication
with Domestic Affiliated Companies[Manages, guides, and supports consolidated
efforts for environmental conservation among
affiliated companies and major suppliers in Japan]

Liaison Committee for Environmental Communication
with Overseas Affiliated Companies[Manages, guides, and supports consolidated
environmental conservation efforts among
overseas affiliated companies]

Quality
Assurancearea

Subcommittee on Systems for SOC Regulations
and Quality Assurance[Develops systems to address SOC regulations and quality control]

The Environmental Committee and subcommittees send information toplants and other worksites through specialized committees establishedaccording to their own ISO14001 systems.
*1 Registration, Evaluation, Authorisation and Restriction of Chemicals*2 Substances of Concern (Environmentally harmful substances)*3 Volatile Organic Compounds*4 Pollutant Release and Transfer Register

TOYODA GOSEI REPORT 201028

Fourth Environmental Action Plan
These are the results of the Fourth Environmental Action Plan (fiscal 2006 to 2010) and results of the activities for fiscal 2009.
We have set more challenging objectives and are continuing those activities which we have already achieved their goals.
We have also begun to formulate the Fifth Environmental Action Plan, which will come into effect from fiscal 2011.

Social Report

Implementation

Reference
page

Results of the Activities in Fiscal 2009

① Development of products and technologies which contribute to
first-rate fuel consumption
Development of products and technologies for weight reduction
Development of products and technologies with lower power
consumption
Development of products and technologies for improving
aerodynamics

Examples of development in weight reduction ・・・・・・・・・・・・・・・
̶ Practical implementation of our lightweight opening trim

P31

② Development of built-in parts for clean energy vehicles and theireffective introduction/ popularization
Development of products and technologies for fuel-cell vehicles③ Development of technologies for various energy sources and fuels
Development of products and technologies for vehicles
Development of materials compatible with new fuels④ Reduction of CO2 in production and Logistics activities

Production / Logistics

Environmental Report

Energy saving / prevention of global warming

Management Report

Development / Design

Business Report

Theme

Production case studies
̶ Reductions in CO2 emissions through improved
efficiency of magnesium die cast lines・・・・・・・・・・・・・・・・・・・・・・・・・・
Efforts for logistics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
̶ Improved efficiency of loading̶ Localization of productions among customers
̶ Focused extensively on fuel-efficient driving

Consolidated

Goals for Fiscal 2010

CO2 emissions per sales unit

Reduce by 8% comparedto fiscal 2003
Reduce by 10% comparedto fiscal 2003

91

CO2 emissions per sales unit to fiscal 2003

Reduce by 15% compared

86 [2]

Reduce by 10% comparedto fiscal 2003
by 10% comparedCO2 emissions per sales unit Reduce
to fiscal 2003

11,497t-CO2

CO2 emissions

Production
Nonconsolidated

Logistics [1] Nonconsolidated

Financial Report

Item

CO2 emissions[1] Applicability: Delivery, mid-process, and procurement logistics[2] This value takes the figure in the base year as 100.

Results for Fiscal 2009[2]

116,000 tons of CO2

78 [2]

Evaluation [3]Achieved a 9% reduction
compared to fiscal 2003
Achieved a 6% reduction
compared to fiscal 2003

○

P31

○

P31

Achieved a 14% reduction
compared to fiscal 2003
Achieved a 14% reduction
compared to fiscal 2003
Achieved a 22% reduction
compared to fiscal 2003

○

P31

○

P32

○

P32

(Reduced by 0.03% compared to fiscal 1990)[3] ○㧦 Goal for fiscal year was achieved, ×㧦 Goal for fiscal year was not achieved

Development of technologies for improving ELV *1parts recycling

Efforts for enhancing recycling efficiency ・・・・・・・・・・・・・・・・・・・・・・
̶ Promoting new recycling techniques̶ Responded to regulations of laws, such as the European
Union's (EU) ELV *1 Directives and to the ELV Recycling Law⑥ Further promotion of designs which facilitate recycling̶ Desulfurizing EPDM rubber with pile

⑦ Further promotion of effective utilization of resources for realizing
the recycling society

̶ Minimize shavings and reuse cutting oil

Production case studies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Efforts for logistics ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
̶ Reduction of packaging materials
̶ Rigorous management of returnable containers

Production / Logistics

Recycling of resources

Corporate Data

Development / Design⑤ Development of recycling technologies

Item

Goals for Fiscal 2010

P33

Evaluation [4]

72 [2]

Landfill waste

Maintain zero emissions

0t

̶

○

P33

Incinerated waste

Zero emissions [3]14t

Achieved a 99% reduction
compared to fiscal 1998
Achieved a 61% reduction
compared to fiscal 2003
Achieved a 64% reduction
compared to fiscal 2003

○

P33

○

P33

○

P33

Volume of use

Packaging
Nonconsolidated
materials
Volume used per sales unit

Reduce by 10% comparedto fiscal 2003
Reduce by 15% comparedto fiscal 2003

[1] Applicability: Delivery, mid-process, and procurement logistics[2] This value takes the figure in the base year as 100.

29 TOYODA GOSEI REPORT 2010

P33

to fiscal 2003

Production

Logistics [1]Results for Fiscal 2009

P32

Achieved a 34% reduction
compared to fiscal 2003
Achieved a 28% reduction
compared to fiscal 2003

by 5% compared
Consolidated Volume of waste per sales unit Reduce
to fiscal 2003
Materials
Discarded Nonconsolidated Volume of waste per sales unit Reduce by 5% compared

Waste Nonconsolidated

P32
P32

66

[2]

92t
36 [2]

○

P33

○

P33

[3] 99% reduction compared to fiscal 1998 (16t or less)[4] ○㧦 Goal for fiscal year was achieved, ×㧦 Goal for fiscal year was not achieved

Reference
page⑧ Management of environmentally harmful substances.
Further promotion of reduction activities Total eliminationworldwide of 4*2 environmentally harmful substances subject
to restriction

Promoted managerial and reduction activities・・・・・・・・・・・・・・・・
Examples of development leading to the reduction ・・・・・・・・・
of Environmentally harmful substances̶ Analytical techniques for the environment
̶ Development of a low permeation fuel cap
̶ Development of an engine hood with high brilliancemolded-in color

P34⑨ Reduction of emissions of PRTR*3 substances

Reduced PRTR substances ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
̶ Improvement of paint coating efficiency

P34

Item
Production Nonconsolidated Volume of PRTR emissions(to the atmosphere)

Evaluation [1]Results for Fiscal 2009

Goals for Fiscal 2010
Reduce by 55% comparedto fiscal 2000

217t

P35

Management Report

Reduce by 65% compared tofiscal 2000○

[1] ○㧦 Goal for fiscal year was achieved, ×㧦 Goal for fiscal year was not achieved

Reduction of VOC emissions・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
̶ Recovering washer thinners
̶ Reduced our use of organic solvents in the LED chip・・・・・・・・
manufacturing process to half

⑩ Reduction of VOC*4 emissions

Item
Production Nonconsolidated VOC emissions per sales unit

Goals for Fiscal 2010

Results for Fiscal 2009

Reduce by 50% comparedto fiscal 2000

[1]

39

P34

Social Report

Production / Logistics

Environmentally harmful substances

Development / Design /Mass production

Results of the Activities in Fiscal 2009

Implementation

Business Report

Theme

P35

Evaluation [2]Reduce by 61% compared tofiscal 2000○

[1] This value takes the figure in the base year as 100.
[2] ○㧦 Goal for fiscal year was achieved, ×㧦 Goal for fiscal year was not achieved⑫ Enhancement of consolidated environmental management

Enhancement of consolidated environmental management
̶ Domestic and overseas sites acquired ISO14001
and the current assessment status ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
̶ Environmental Audits (Internal Environmental Auditing,External Environmental Auditing) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
̶ Efforts of the domestic affiliated companies(Toyoda Gosei Interior Manufacturing Co., Ltd.)・・・・・・・・・・・・・・・
̶ Efforts of overseas affiliated companies(Tianjin Toyoda Gosei Co., Ltd.)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

P36
P36
P36
P39
P39

Cooperation with society

Promoted Procurement Policy⑭ Enhancement of environmental education

Systematically implemented environmental
education programs ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・⑮ Promotion of new business activities which contribute toimproving the environment

Examples of promotion of new business activities ・・・・・・・・・・・
which contribute to improving the environment
̶ Expansion of LED business for consumer use

P38⑯ Steady reduction of environmental burden in life cycle throughfull-scale application and popularization of Eco-VAS*6.

Regularly reported data on resource consumption andenvironmental impact based on clients' systems

̶⑰ Contribution to formation of a recycle oriented society

Community case studies
̶ Carrying out community cleaning activities ・・・・・・・・・・・・・・・・・・・・
̶ Contributing proactively to society at our overseas sites ・・・・
̶ Afforestation Project of our plants・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

̶ Held seminars regarding Procurement Policy・・・・・・・・・・・・・・・・・・
̶ Dealing with revised European ELV and REACH*5 ・・・・・・・・・・・・
regulations

P25
P34

P37

Corporate Data

Environmental management⑬ Further promotion of environmental management by business
partners

Financial Report

Understood the actual reduction in global CO2
emissions and promoted the establishedreduction plan ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Environmental ReportManagement⑪ Further CO2 reductions from global business activities

P26
P26
P7

⑱ Disclosure of environmental information and enhancement ofinteractive communication

Disclosure of environmental information andenhancement of interactive communication
̶ Exhibited at the 41st Tokyo Motor Show 2009 ・・・・・・・・・・・・・・・
̶ Publication of "Toyoda Gosei Report 2010"

P20⑲ Proactively contributing to and advising on environmental policies
with a view to sustainable development

Participated in the environmental policies of the Japan
Auto Parts Industries Association, the Japan Rubber
Manufacturers Association and other organizations

̶*1 End of Life Vehicle *2 Lead, mercury, cadmium, and hexavalent chromium *3 Pollutant Release and Transfer Register *4 Volatile Organic Compounds*5 Registration, Evaluation, Authorisation and Restriction of Chemicals *6 Eco-Vehicle Assessment System

TOYODA GOSEI REPORT 201030

Consolidated:

Nonconsolidated:
Consolidated
Goal

100

8%

reductioncompared tofiscal 2003

91
86

Nonconsolidated
Goal

80
0

15%

reductioncompared tofiscal 2003

'03

'06

'07

'08

'09

(the base year)'10(Fiscal year)*CO2 Emissions per sales unit (Index) takes the figure for CO2 emissions in fiscal
2003 as 100.

Highlights of fiscal 2009Management Report■ Consolidated: We achieved a 9% reduction in CO2emissions per sales unit compared to fiscal 2003
■ Nonconsolidated: We achieved reducing CO2
emissions by 6% toward the goal of a 10%
reduction from fiscal 2003 to fiscal 2010. We alsoachieved the goal of CO2 emissions per sales unit
(a 14% reduction compared to the goal of 15%)

■ Changes in CO2 Emissions
CO2 emissions (10,000t-CO2)

Business Report

We are striving for high productivity andstreamlined logistics by enhancing lighter
weights for vehicle bodies as well as measuresfor dealing with a diverse range of energies.
We aim to reduce our CO2 emissions.

■ Changes of CO2 Emissions per sales unit (index)
CO2 emissions per sales unit (Index)

Energy Saving / Preventionof Global Warming

14

12.3

Nonconsolidated
Goal

11.6

10%

reductioncompared tofiscal 2003

7

0

(
'03

'06

'07

'08

'09

ReducedRedu
ced by approx
approxrox..
5% compar
compareded totofifiscalscal 199
19900

'10

(the base year)(Fiscal year)*For the CO2 conversion factor, the following figures are used:
Conversion formula: [kg-CO2]=㨇kg-C㨉×3.67
Electricity: 0.3817kg-CO2/kWh
Heavy Oil A: 2.7kg-CO2/LLPG㧦3.0094kg-CO2/kg City gas: 2.3576kg-CO2/Nm3
Kerosene: 2.5308kg-CO2/L

Development / Design

Social Report

Handling vehicle weight reduction andclean energy

Case study
Development / Design

Practical implementation of our lightweight opening trim

Environmental Report

I m p l e m e n t a t i o n i s s u e s f o r p ro d u c t a n d t e c h n i c a ldevelopments under the "Fourth Environmental Action Plan"

Financial Report

include: ➀ lighter vehicle bodies for improved performancein fuel efficiency; and ➁ adaptations for clean energy
vehicles and fuel diversification.
We will be focusing further on trimming weight in fiscal
2009, and aim to accelerate the weight reduction of vehicle
bodies through technical developments such as making the
opening trim lighter and making resin products thinner.

By making improvements to the materials used, we haveachieved a lighter-weight opening trim, which is placedaround the door opening on the vehicle body. More thanhalf of the product material was composed of solid rubber,and this was compounded to become spongier and thus,
lighter in weight. We also revised the shape of the metal
insert core, achieving a low density yet highly rigid core.
These improvements led to a lightening in weight ofapproximately 22% for all 4 doors combined, in comparison
to previous products.

Sponge rubber

Corporate Data

Energy saving equipment introduction
and CO2 emissions reduction

31 TOYODA GOSEI REPORT 2010

Revised shape of metal insert
We achieved a lighter weight byincreasing the thinned portion of
the metal plate that forms the coreof the rubber, and increasing thegaps at the sides.
Lighter solid rubb
rubb
bber
er
The combination ofmaterials wasredesigned to be
spongier and more
lightweight, whilst
increasing rigidity.

Production

The Toyoda Gosei Group has progressively acted to prevent
global warming by improving productivity andsimultaneously lessening energy consumption. Since fiscal
2005, new production facilities larger than a certain scale
have been required to reduce energy consumption to levels
at least 30% lower than conventional facilities, andsequential switchovers to energy-saving equipment are
taking place. Whenever new equipment is to be
implemented at Toyoda Gosei, we exchange information
with the production technology groups of other divisions
and carry out advance reviews from various perspectives,
including environmental aspects.

)

Solid membrane

Decorative color membrane

Declaration of ‘Eco’ Excellence Create a comfortable environment without using power by sensibly opening or closing windows and blinds.

Case study

Resource Circulation

Production

Reductions in CO2 emissions through improved
efficiency of magnesium die cast lines

We are promoting production activities aimed
at zero waste through efficient utilization of
resources and measures for recycling products.

Highlights of fiscal 2009

12,000SF6
reduced by

23%

12,0006,000

Ways of thinking about recycling design

Electricity /gas reduced by

916

813

Previously

Afterconsolidation

0

11%

Logistics

1. Actions to increase efficiency and to reduce the numberof vehicles dispatched
2. Shortening flow line through route alterations andlocalization of production sites
3. Pursuing transportations producing less CO2 emissions
Nonconsolidated
Goal

10%

Emissions (in tons of CO2)

reductioncompared tofiscal 2003

20,000100
13,403
11,497

0

80

78

'03
(the base year)

'06

'07

'08

'09

'10

0

Emissions per sales unit (Index)■ Changes in CO2 Emissions from Logistics
Operation and in Emissions per sales unit (Index)■ Technological Development for ELV Parts Recycling
Key items

Approaches· New recycling techniques
New recycling(high-quality material recycling)· Techniques to separate composite materials· Development of applications for recycled
Installing parts made ofmaterials
recycled materials in vehicles · ELV parts recycling technology·
Easy-to-recycle
materials,
Designing products thatand compositional changes
are easy to recycle· Easy-to-dismantle designs for productsCase study
Development / Design

Corporate Data

■ Three Pillars for Activities Designed to Reduce
CO2 Emissions from Logistics Operation*End of Life Vehicle

Financial Report

To reduce CO 2 emissions during transportation, we
promoted shorter logistics flow lines, improved loading
efficiency, made adjustments to correspond to production
volumes, and ascertained loading capacity to determine
appropriate dispatch of delivery vehicles, based on the “3Gen-isms” ( ‘Genchi’ , ‘Genbutsu’ , and ‘Genjitsu’ , which
are translated as ‘actual locations’ , ‘actual materials’ and‘actual situations’ , respectively). In fiscal 2009, we
rigorously improved efficiency in transportation by adapting
to fluctuations in volume, and reduced the number ofdelivery services by 10% through consolidation.
We also reduced the amount of CO 2 generated byexpanding production based on proximity to our customers
and shortening logistics flow lines.

Toyoda Gosei always designs its products with recycling in
mind. In fiscal 2009, we aimed to enhance our technology
for high-quality material recycling, and have continued topromote the reuse of high polymer materials such as rubber
products.
We are accumulating technology that enables mid process
recycling technology to be used in ELV* parts recycling.

Environmental Report

Our regular delivery schedule was reorganized
and consolidated to make transport more efficient

10,000Development / Design

Social Report

CO2 (conversion) emissions (in tons of CO2)SF6Electricity +gas

15,500Management Report■ Consolidated: We achieved a 34% reduction inmaterials discarded per sales unit compared tofiscal 2003.
■ Nonconsolidated: We achieved reducing materials discarded by 21% compared with fiscal 2003

*Global Warming Potential (GWP) is a relative index that compares the effects ofindividual greenhouse gases (GHG) on global warming to the effects of CO2,
calculated over a specific time interval.

18,000Business Report

Aluminum and/or magnesium die casts (casting) are used
for the steering wheel core to maintain rigidity. By improving
production efficiency on the manufacturing lines formagnesium die casts and implementing measures to saveelectricity and gas, we reduced our CO2 emissions by 11%
on the previous year.
Although SF6 (sulfur hexafluoride), which has a high global
warming potential (GWP), is used to prevent oxidization of
the molten magnesium alloy, we were able to decrease ouruse by 23% via CO2 conversion through consolidation of
our manufacturing lines.

Desulfurizing EPDM rubber* with pile
A rubber window seal is affixed to the interior of vehicle
doors to reduce friction when raising or lowering thewindow glass. The base of this structure is composed ofrubber grafted with nylon fibers (pile). A separation process
is usually required when recycling materials. However, thisprocess has been shortened dramatically by enablinghydrolysis of the nylon in the extrusion machine’ s internal
deodorizing zone.
In addition, it has enabled a significantly larger volume ofmaterial to be recycled. The reworked materials produced inthis way are then recycled using conventional methods tocreate new products (window seals).
*Ethylene propylene rubber■ Recycling & reusing methods
Rubberwastematerial

Desulfurization

Water
vapor
deodorization(3 times)

Cooling

Recycledrubber(Fiscal year)*CO2 Emissions per sales unit (Index) takes the figure for CO2 emissions in fiscal 2003 as 100.
*Applicability: Delivery and mid-process logistics
Declaration of ‘Eco’ Excellence We are striving to improve the yield rate by reusing processed electrode material without the use of superfluous materials.

TOYODA GOSEI REPORT 201032

Production

Case study

Reducing Waste and Materials Discarded

Production

Minimize shavings and reuse cutting oil

Business ReportManagement Report

We are promoting 3 reduction activities, namely, ‘landfill
waste’ , ‘incinerated waste’ , and ‘discarded materials’ aspart of our efforts to tackle resource recycling at our
production sites.
Our goal of ‘zero direct landfill waste’ was first achieved in
December, 2002, and has been maintained continuously
through to fiscal 2009.
As for reductions in discarded materials, we have been
desulfurizing EPDM rubber* with pile, and expanding ourefforts to re-make pellets from discarded resin. These
measures helped us to significantly reduce the volume of
discarded materials per unit of sales to levels that areapproximately 28% less than fiscal 2003 figures.

We have made efforts in the Molding Division to reduce theamount of shavings generated when manufacturing molds.
The cutting surface has been reduced by reducing the size ofthe iron material that is cut when processing the molds. The
Molding Division and the Design Division collaborated toreduce the number of holes for pocket attachments to theminimum possible, which also reduces the amount of shavingsin the hole openings.
In addition, we have implemented an optical molding processthat uses a laser to fuse the iron shavings together. This new
mold processing technology does not shave the iron material,and is now being put to practical use in some mold processes.
Although water-soluble cutting oil is used when processing
molds at the machining center, we separate, collect and reuse
the cutting oil that is discharged when other substances, suchas the shavings and lubricant, are discharged.
■ Cross section diagram of a mold

*Ethylene propylene rubber

Reduced hole
pocket■ Amount of Waste Generated / Waste Disposal Situation

Reducedportion(Results for fiscal 2009) Numbers inside < > are proportions of the emissions

Social Report

Amount of paid
recycling (sold)5,818t‫ޛ‬38.4%‫ޜ‬Amount of internalreusing
3,275tLogistics

Amount ofmaterials
discarded
15,155t‫ޛ‬100%‫ޜ‬

Amount of reverse
compensation
recycling (paid)
9,323t‫ޛ‬61.5%‫ޜ‬Amount of incinerated
waste 14t‫ޛ‬0.1%‫ޜ‬■ Changes in Amount of Materials Discarded per sales unit (index)

Financial Report

Materials Discarded per sales unit (index)

Environmental Report

Amount of landfill
waste 0t‫ޛ‬0%‫ޜ‬

Nonconsolidated:

Consolidated:

100

Nonconsolidated &consolidated Goal80

reductioncompared tofiscal 2003

5%

72
66
60
0

'03

'06

'07

'08

'09

'10

(the base year)(Fiscal year)*Materials discarded per sales unit takes the figure for materials discarded in fiscal
2003 as 100.

■ Changes in Amount of Incinerated Waste

Corporate Data

Amount of incinerated waste (in tons)

1600
400

200

0

14 16 or less'98

(the base year)

'06

'07

'08

'09

'10

(Fiscal year)*Figures are converted into annual values at the end of the fiscal year.

Nonconsolidated
Goal

99%

reductioncompared tofiscal 1998

Rigorous management of returnable containers*1
A thorough review was made to determine the necessity ofdisposable packaging materials used in the returnablecases for transporting products. As a result, plastic bags
were replaced with fixed cover sheets, thus reducing thevolume consumed in fiscal 2009 to 92t, a 16% decrease on
the previous year’ s figures.
In order to improve loading efficiency for trucks (containers),
the sizes of returnable cases were consolidated from thedesign phase, thus reducing the variety of sizes available infiscal 2009 from 60 to 32. Reviews are still being conductedwith the aim of further reducing the number of sizes
available to just 22. Furthermore, in order to maintainappropriate storage conditions, all our plants are rigorously
washed and cleaned, and the number of dirt-preventing
papers placed beneath the containers has been reduced.
Flow lines have been shortened thanks to efforts to baseproduction close to customers, leading to a reduction in
returnable container rotations and simultaneously, a
reduction in packaging materials. We will continue to set
goals to challenge ourselves every year until we reach ourultimate goal of achieving ‘Zero’ disposable packaging
materials.
*A strong box that can be used repeatedly to transport parts and products■ Changes in Use of ProductPackaging Materials andUsage per sales unit (index)
300

15,000(

ReduceReduce by 21
21%%
compar
com
pared
par
ed to
fifiscalscal 20
2003
03)

Usage (tons)

Volume emitted (in tons)

15,155'03(the base year)

33 TOYODA GOSEI REPORT 2010

'06

'07

'08

'09
(Fiscal year)

100

10%

reductioncompared tofiscal 2003

150

50
36
92

0
0

15%

reductioncompared tofiscal 2003
Nonconsolidated
Goal

235

19,200Nonconsolidated
Goal

'03

'06

'07

'08

'09

'10

(the base year)(Fiscal year)*Usage per sales unit (index) shown takes the figure from fiscal 2003 as 100.
*Applicability: Delivery, mid-process, and procurement logistics

0

Usage per Sales Unit (index)■ Changes in Amount of Materials Discarded (Nonconsolidated)
20,000

Reduced exteriorwall of mold

Declaration of ‘Eco’ Excellence Cultivate effective microorganisms (‘EM’) in water that has been used to wash rice, and use it as a disinfectant or insect repellant.

Environmentally Harmful
Substances

Highlights of fiscal 2009

Development / Design

Social Report

Reduction of Environmentally Harmful
Substances and our global response

We have been reducing environmentally harmful substances in
the production process such as the PRTR and VOC substances‘toluene’ and ‘xylene’ , through means such as improving thecleaning efficiency of paint robot pipes, reducing the amount ofwashing thinners used and recovering the washer thinners used
for cleaning paint guns. These substance reduction activities are
conducted principally by the VOC Reduction Working Group, a
sub-organization of the Production Environment Subcommittee,
which is working on the horizontal development of a superior
approach by exchanging information between business units.
Furthermore, amendments were made to the ‘Act on
Confirmation, etc. of Release Amounts of Specific Chemical
Substances in the Environment and Promotion of Improvements
to the Management Thereof ’ (also known as the ‘Law
concerning Pollutant Release and Transfer Register / PRTR’ ) in
fiscal 2009, and in October that year we received information
about which PRTR substances were to be added or removed
from the eligible substances. Prior to implementation of the law,
we conducted a preliminary survey on all the raw materials we
had ever used, and performed a review of our system for tallying
substance amounts.

Management Report■ Adapting to revised European ELV*1, and REACH*2
regulations■ Revised system for tallying amounts of PRTR*3
substances added or removed

Reduction of environmentally harmful substances in the
production process and compatibility with amendments tothe ‘Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof’*6 (PRTR System)

Business Report

To respond adequately to increasingly stringent
global regulations pertaining to environmentally
harmful substances, we have reduced the amount ofthese substances contained in products, and haverevised the system for tallying substance amounts.

Production■ Emission / Flow of PRTR substances (Results for fiscal 2009)’01 Totally eliminated(Vulcanizing adhesive)’02 Totally eliminated(Cation electro-coatedpaint)’04 Totally eliminated(Soldering)

Lead free soldering has
been applied to new parts

Hexavalent chromium

Response
to voluntary
control’07 Totally eliminated

PVC

Reduced usage

Environmental hormones(endocrine-disrupting chemicals)

Banned use in new products

VOCs in vehicle interiors(Paints and Adhesives)

Responded to clients’voluntary controls

Released
into water
ways

Releasedinto
sewersReleased
into thesoil

Volumemoved
as wasteRemoval(amount ofdisposal)

0.15

0.13

0

144

86

■ Changes of PRTR Substances Emitted
800

Nonconsolidated
Goal

625

55%

reductioncompared tofiscal 2000

400
217
0

'00

'06

'07

'08

'09

Corporate Data

(PVC*5 stabilizer
and lubricant)

195

'10

(the base year)(Fiscal year)■ Changes of VOC Emissions/Emissions
per sales unit (Index)
Nonconsolidated
Goal

1,600

50%
reduction

1,169
800

0

100

compared tofiscal 2003

50

39
593

'00

'06

'07

'08

'09

'10

(the base year)(Fiscal year)*VOC Emissions per sales unit (index) takes the figure for VOC emissions infiscal 2000 as 100

0

Emissions per sales unit (Index)’98 Totally eliminated

Products

650

Situation of countermeasure(Rubber vulcanizing
agent)

7.2

Amount ofchemical
substances

Volume emitted (in tons)

Lead compounds

Response
to legal
controls

Key countermeasure
substances (Applications)

Recycling

217

Financial Report

Division

Gases emitted
into theatmosphere

Environmental Report■ Efforts to Reduce Environmentally Hazardous
Substances(Unit: ton)

Volume emitted (in tons)

As a global corporation, our company strives to adapt to theregulations of various countries. In fiscal 2009, we reviewed
the European Union (EU)’s ELV Directive on banned
substances and exempt substances, and we are moving
forward with our compliance of this directive. We are also
proceeding with preparations to deal with the expansion ofregulated substances, such as SVHC (Substances of VeryHigh Concern) that have been added to the EU’s ‘REACH’
chemical substance regulations.
We, including our Chinese affiliate companies, have also
begun conforming with China’s ELV Directive in accordancewith the details of the regulations.
I n re s p o n s e t o t h e v o l u n t a r y c o n t ro l o f t h e J a p a n
Automobile Manufacturers Association, we are tackling
vehicle interior VOC *4 reduction and adopting non-VOC
adhesives and water-based paints for interior parts ofadhesives as we continue with our reexamination of the raw
materials we use throughout our manufacturing processes.

*1 End of Life Vehicle*2 Registration, Evaluation, Authorisation and Restriction of Chemicals*3 Pollutant Release and Transfer Register*4 Volatile Organic Compounds*5 Polyvinyl Chloride*6 Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in theEnvironment and Promotion of Improvements to the Management Thereof

Declaration of ‘Eco’ Excellence Implement your own personal ‘summer time’ by going to sleep and waking up one hour earlier.

TOYODA GOSEI REPORT 201034

Case study
Development / Design

Analytical techniques for the environment

Business Report

VOC (volatile organic compounds) * 1 refers to organic compounds such asformaldehyde and toluene that vaporize easily at room temperature, and that are
causative agents of Sick House syndrome. In order to improve the environment invehicle interiors, Toyoda Gosei is using chemical analyzers to analyze the VOC
volatization volume of its development articles for interior parts. Furthermore, we haveused analytical techniques for the bridged structure of rubber to reveal the optimal
material structure, enabling us to minimize the vulcanized energy of rubber (lower
power consumption).
Analytical device*1 Volatile Organic Compounds

Management Report

Development / Design

Development of a low permeation fuel cap

Social Report

We developed a fuel cap that minimizes the amount of fuel vapor emitted from the fuelopening into the atmosphere when refueling a vehicle. Fuel can evaporate from eventhe slightest gap and has properties that enable it to permeate resin and rubber, thus
becoming discharged into the atmosphere. This fuel cap has reduced permeability andwas developed to be compatible with North American P-ZEV*2 standards. By using
permeation-resistant fluoro rubber on the cap gasket and optimizing the shape throughanalysis techniques, we have improved the seal and curtailed the amount of
permeation. Also, we have eliminated any gaps between the guide and the rubber by
expanding the inner diameter of the valve to stabilize the seal point, thus further
enhancing airtightness. Enhancements to various structural components such as thesehave collectively helped to reduce fuel permeation to approximately 50% ofconventional amounts.

Gasket shape, optimized materials,
reduced fuel permeability.

Environmental Report

The valve shape was changed
and airtightness improved.

*2 Partial- Zero Emission Vehicle

Development / Design

Development of an engine hood with high brilliance molded-in color

Financial Report
Corporate Data

We achieved an engine cover with lustrous coloring without applying paint by using
molded-in color. Ordinarily, many weld lines (surface defects at welding) are generated
when resin is given high brilliance. Accordingly, only low-intensity colors such as black
were common in molded-in coloring until now. However, by predicting the flow of resin
from the design stage through to when it is setting in the mold, we have developed a
new material that suppresses weld line generation. By then adding a high brillianceagent to the material, we have been able to represent metallic tones despite themolded-in coloring process. As a result, we have abolished the painting process, thus
reducing both costs and the environmental impact, and earning us Toyota Motor
Corporation's ‘Superior Prize for Cost Reduction.’

Production

Engine hood with high brilliance molded-in color

Halving our use of organic solvents in the LED chip manufacturing process
OthersVolume of organic solvents used

Previously in the LED chip electrode formation process, we performed ‘wet cleaning’
using a chemical solution to remove the resist film after etching. We have now switched
to a ‘dry cleaning’ process using a gas such as oxygen for virtually all kinds of items. In
addition, activities to improve chemical solution processing (such as shortening thecleaning process and making equipment enhancements to enable the chemicalsolution to be reused) have enabled us to halve our use of organic solvents fromprevious amounts.

SolutionD
SolutionC

Approximately

50%

reduction
in tota

Solution
B

SolutionA
Previously

35 TOYODA GOSEI REPORT 2010

Combined with theswitchover from ‘wetcleaning’ to ‘dry
cleaning’After
improvements

Declaration of ‘Eco’ Excellence To make your driving more environmentally-friendly, remember to check and visualize the fuel efficiency of your vehicle every time you refuelEnvironmental management
The entire Toyoda Gosei Group cooperates
together to promote thorough environmental
management and to reduce our environmental
impact.

Management Report■ Activities have begun to strengthen our environmental management system in China■ ‘Eco’ declarations help to strengthen our employees’ environmental awarenessToyoda Gosei implements internal environmental audits
using audit teams comprising members of plants that areoutside the scope of inter nal environmental audits.
Additionally, at Toyoda Gosei Group commissioned theJapan Quality Assurance Organization (JQA), an external
assessment and registration organization, to confirm
whether our environmental management systems are being
run properly in accordance with the ISO14001 (revised fiscal
2004 version).
In fiscal 2009, no issues were indicated at either Toyoda
Gosei or any of its associates, and it was demonstrated thatmanagement is being conducted appropriately.

Business Report

Highlights of fiscal 2009

Implementation of Environmental Audits

Enhancing environmental education at
Toyoda Gosei Group●Acquired ISO14001 certification

New compa
companies
nies andand main plants
plants areare encour
encouraged
aged to ac
acqui
quire
re ISO1400
ISO14001
1 certificcertificati
ationon
within thre
withinthree
e years
years of sta
starting
rting operat
operation
ionss● Haruhi Plant● Inazawa Plant● Nishimizoguchi Plant ● Bisai Plant● Iwate Plant● Kitakyusyu Plant● Seto Plant● Saga Plant● Morimachi Plant● Heiwacho Plant● Kanagawa Plant● Fukuoka Plant● Ichiei Kogyo Co., Ltd., ● Hinode Gomu Kogyo Co., Ltd.,● Hoshin Gosei Co., Ltd.,● Toyoda Gosei Interior Manufacturering Co., Ltd.
● Kaiyo Gomu Co., Ltd., ● TG Opseed Co., Ltd.

Overseas
Affiliates■ North America● TG Missouri Corporation● TG Kentucky,LLC● TG Automotive Sealing Kentucky, LLC● TG Fluid Systems USA Corporation● Toyoda Gosei Texas, LLC● TG California Automotive Sealing, Inc.
● TAPEX Mexicana S.A. DE C.V.
● Waterville TG Inc.
● TG Minto Corporation■ Asia, Oceania, Europe and Africa● Toyoda Gosei㧔Thailand㧕Co., Ltd.
● Toyoda Gosei Rubber (Thailand) Co., Ltd.
● Toyoda Gosei Haiphong Co.,Ltd.
● TG Kirloskar Automotive Pvt. Ltd.
● P. T. Toyoda Gosei Safety Systems Indonesia● Fong Yue Co.,Ltd.
● Tai-yue Rubber Industrial Co.,Ltd.
● Bridgestone TG Australia㧔Pty㧕Ltd.
● Tianjin Toyoda Gosei Co., Ltd.
● Tianjin Star Light Rubber and Plastic Co., Ltd.
● Toyoda Gosei (Zhangjiagang) Co.,Ltd.
● Toyoda Gosei (Zhangjiagang) Plastic Parts Co.,Ltd.
● Toyoda Gosei (Foshan) Rubber Parts Co., Ltd.
● Toyoda Gosei (Foshan) Auto Parts Co., Ltd.
● Fuzhou Fu-Yue Rubber & Plastic Industrial Co., Ltd.
● Toyoda Gosei (Tianjin) Precise Plastic Co., Ltd.
● Toyoda Gosei UK Ltd.
● Toyoda Gosei Czech, s.r.o.
● Toyoda Gosei South Africa (Pty) Ltd.

A ‘Global EMS’ (Environmental Management System) was
formulated with the objective of unifying domestic andforeign environmental management levels, and we are
steadily implementing improvements in the level of ouroverseas associates’ environmental management systems,
sharing information and managing legal compliance.
In fiscal 2009, we conducted a survey of the local situation
at our Chinese production sites, extracted environmental
issues and exchanged ideas with various site managers, inorder to strengthen the environmental management system
in China, where environmental laws and regulations arebeing tightened and enforced. From fiscal 2010 onwards,
we are implementing activities in Chinese regions aimed atenvironmental controls.

Corporate Data

Domestic
Affiliates

Establishment of environmental management
system at overseas affiliated company

Financial Report

Toyoda Gosei

Morimachi Plant, External Environmental Auditing

Environmental Report■ Subject to Consolidated Efforts for Environmental
Conservation

Social Report

The entire Toyoda Gosei Group cooperates together toproactively promote thorough environmental management
and to reduce our environmental impact.
We have been collecting environmental data from eachgroup company, starting with domestic affiliated companies
in fiscal 2001 and overseas affiliated companies in fiscal
2004, established reduction plan which is base on it’ senvironmental data (CO2 emissons, volume of waste) andare promoting the shared goals of the Toyoda Gosei Group
companies for fiscal 2010.

Survey of the local situation at our Chinese sites

Declaration of ‘Eco’ Excellence When travelling to a destination within your neighborhood (within a 3km radius), either walk or go by bicycle.

TOYODA GOSEI REPORT 201036

Promoting environmental education at
Toyoda Gosei Group

Business Report

We are providing suitable education for Toyoda Gosei
Group employees concerning the environmental problems
such as the destruction of our natural environment,
environmental contamination, the impact of production on
the environment and observance of environmental laws.

■ Environmental Education System of the
Toyoda Gosei Group
Targeted
personToyoda Gosei

Affiliate Companies
Japan

Overseas

Disclosing environmental cost information
For our environmental costs in fiscal 2009, we focused on
Afforestation Project of our plants., research &development, remaking pellets from resin material andrubber desulphurization. Economic results included a
reduction in waste disposal expenses stemming fromrecycling and measures to counter waste material sources,
as well as a reduction in electricity expenses throughimproved efficiency in utility equipment.

■ Environmental Cost
Type of cost

Management Report

Education for new managers

0.88

̶

1.94

0.13

0.17

0.03

Social Report

Education for new employees
Educational activities for environmentally-focused months

Cost for social contributions*4

0.07

0.01

Education for environmental staffs

Cost for dealing withenvironmental damage*5

0.05

0.01

Total

3.11

0.18

Education for environmental key-men
Environmental related qualifications acquisition

Education to upgrade internal auditors
In relation of
ISO14001

Toyoda Gosei

Cost for research anddevelopment*1
Cost incurred within theoperational area*2
Cost for management
activities*3

Education for workers stationed abroad
Company-widecommonness(Unit: billion yen)

Total of domestic
affiliated companies

Education to register internal auditors
Education for supervising managers
Education for workers in environmental significant work

Education for general workers*1 Cost for research and development of products to reduce environmental impacts.
*2 Cost to reduce environmental impacts generated in production, such as pollution
control, energy saving, and waste disposal.
*3 Cost for management, including education, maintenance of the environmental
management system, and measurement.
*4 Cost for such measures as forestation and beautification.
*5 Cost for dealing with environmental damage caused by business operations.

Environmental Report■ Effects

All employees make ‘Eco’ declarations
during environmentally-focused months

Financial Report
Corporate Data

As an educational activity to heighten environmental
awareness, we will implement on-site complianceinspections and display posters to coincide with theenvironmentally-focused month of June. In fiscal 2009, allemployees made their own “‘Eco’ declaration,’ to giveconsideration to the environment, both in their daily lives( ‘eco-life’ ) and at work ( ‘eco-work’ ). Following these
activities, each employee evaluated his/her own
performance. Ten employees who undertook ‘Eco’
declarations that were particularly beneficial to theenvironment, and that had potential for lateral deployment,
were awarded the ‘Declaration of Eco Excellence’commendation.

(Unit: billion yen)

Economic effects*6
Toyoda Gosei

Total of domestic
affiliated companies

Energy cost

0.16

0.06

Cost for waste processing
Total

0.69

0.11

Total

0.85

0.17

Type of effectType of effectPhysical effects*7

Prevention of global warming(amount of CO2 reduced)
Reduction of waste disposal(amount of waste reduced)

4,610t-CO2

Legal Compliance Activity

Legal Compliance Activity (on P40)

*6 The economic effect calculated here covers that which can be grasped based on solid
ground.
*7 Physical effects are calculated for Toyoda Gosei alone.

■ Changes in Environmental Cost ■ Changes in Economic EffectToyodaGosei(billion yen)

Total of domestic
affiliated companies

ToyodaGosei(billion yen)

Total of domestic
affiliated companies

1.2

4

0.17

0.18
3.11

Declarations from the gold prize ‘Eco’ declaration
winners● When it’s time to return home, I check for air leaks at
the factory and deal with them promptly.

1,315t

0.85

0.6

2

● When I first turn on the shower, I collect the cold
water in a bucket while I’m waiting for the hot water
to come through, and later use it for cleaning.
*Declarations from the silver and bronze prize ‘Eco’ declaration winners are posted on thebottoms of pages 31 through 38.

0

'05

'06

'07

'08

'09

(Fiscal year)

37 TOYODA GOSEI REPORT 2010

0

'05

'06

'07

'08

'09

(Fiscal year)

Declaration of ‘Eco’ Excellence Make efforts to save documentation in PDF format or use the computer screen to give explanations, rather than printing out documents unnecessarily.

Promote the popularization of LED products, for which high expectations areheld as an environmentally-friendly product.
Furthermore, by using LED lighting alone at our booths
when we displayed at events such as the 41st Tokyo Motor
Show and various Lighting Fairs, we were able to drasticallyreduce our electricity consumption, and emphasize theappeal of the future of lighting devices and lower power
consumption to the booth’ s visitors.
As part of our activities to popularize LED products, we arealso making proposals to commercial stores. We haveenlisted the cooperation of a certain major restaurant thathas a chain of stores nationwide, and lighting devices
throughout some of their outlets have been switched over
to LEDs. The low heat generation of LEDs means that lesspower is required to run air conditioning equipment, which
in turn means fewer CO2 emissions. Stores that implement
LED lighting can actually reduce their energy bill and lightbulb replacement costs to approximately just one-fifth over
5 years. We plan to implement LED lighting in other storesalso in the future.
LED lighting is not only an ‘eco-product’ that is gentle on
the global environment. Many LEDs for lighting purposescontain no ultra-violet or infra-red rays, so they have a lot of
potential for use in lighting displays for clothing, works ofart, and fresh food. Furthermore, LEDs used in devices
such as air purifiers have excellent hygiene benefits, as they
can break down and sterilize harmful substances resulting
from photocatalysts. We are actively working on our
technology and product development so as to further
popularize environmentally-friendly LED products that meetthese kinds of needs in our modern age.

Business ReportManagement ReportSocial Report
Environmental Report

LED products are extremely environmentally-friendly, having
low power consumption, long-lasting performance, andcurtailed CO2 emissions, and are garnering attention in avariety of different fields. Toyoda Gosei is conducting
consistent development and production of LED products,from chips through to devices, with the aim of further
spreading their popularity.
In fiscal 2009, we relocated and renovated our LED
Showroom, creating a style of exhibition that introduces
visitors to LEDs from conventional, simple bodies throughto enabling them to see and experience first-hand the role
played by LEDs in our daily lifestyles. The Showroom hasrecreated spaces to replicate a restaurant, office, and theaverage family home, using appropriate LED lighting in eachof the rooms to create a realistic living space. Other ways to
use LED lighting are also introduced, such as in decorative
illumination and outdoor
signage. The interiorfocused display enabled
visitors to see thebrightness and colors of
the LED lighting designedwith users' needs in
mind, and the Showroom
fulfils a role as a base forgenerating information
about LED lighting,including business
LED Showroom
negotiations.
The appeal of LED lighting is emphasized in these
4 distinctive spaces

Financial Report

Store space

Declaration of ‘Eco’ Excellence

Office space

Illumination space

Corporate Data

The home space

We reduced our energy consumption by 70% at the Tokyo Motor Showby changing all the conventional lighting devices to LEDs

Energy consumption has been
reduced by 90% at this major
restaurant by switching all theconventional lighting devices to
LEDs

We are also implementing practical ‘eco’ tips in our daily lives, such as using our own cups instead of disposable ones,
using paper hand-held fans, and taking our own bags when going shopping.

TOYODA GOSEI REPORT 201038

Efforts of the Domestic and Overseas Affiliated Companies
Toyoda Gosei Interior Manufacturing Co., Ltd.
Unified company-wide environmental conservation activities

Business ReportManagement ReportSocial Report

Toyoda Gosei Interior Manufacturing Co., Ltd. is located in Togo town in Aichi
county, a verdant area in the wester n region of Nagoya city, andmanufactures interior and exterior automotive parts made from resin. This
company has elevated the environmental awareness of all its employees, andis developing its own unified, company-wide environmental conservation
activities. In 2007, in cooperation with a soft drink beverage manufacturer,
the company began a fund to promote greenery by contributing a portion of
its revenue from vending machine sales. In this way, contributions towards
afforestation efforts are continuing. In addition, the company makes an effort
to promote the approach of the green purchase, and has reached its internal
target of purchasing 76% ‘eco’ products for company use, such as officeproducts and consumable supplies for office equipment.
As for lessening our environmental impact, we have reduced waste andmade effective use of resources by increasing the volume of resin waste thatis recycled internally using the company’ s recycling equipment. We havealso reduced process defects and promoted reductions in CO2 by reducing
the amount of energy consumed for production equipment and by shortening
cycles. In fiscal 2009, we achieved a recycling rate within the company ofapproximately 50%.
In addition, we are proactively participating in various kinds of local
community activities. For example, we have participated in town campaigns
to clean the areas around the neighborhood as part of our town beautification
activities, and have organized safety patrols by posting employees at trafficintersections around the company to promote traffic safety.

D ATA● Location
Togo, Aichi County, Aichi Prefecture● Established
May, 1961● Capital
80 million yen● Business details
Manufacturing of interior & exterior parts● ISO14001 certification acquired in June 2002
● ISO9001 certification acquired in August 2004

Toyoda Gosei Interior Manufacturing Co., Ltd.

Zero waste
cleaning activities

Traffic safety patrols

Environmental Report

Tianjin Toyoda Gosei Co., Ltd.
Strengthening activities to reduce environmental impact

Financial Report
Corporate Data

Tianjin Toyoda Gosei Co., Ltd. (Tianjin TG) is our largest-scale production site in
China. It is located in the Dongli Economic Development Area approximately 40km
from Tianjin City, and is surrounded by Toyota-affiliated parts manufacturers.
Environmental regulations were tightened in China with the advent of the 2008
Beijing Olympics, and emphasis was given to corporate environmental conservation
activities. Tianjin TG is also proactively involved in environmental conservation
activities, and uses its monthly meetings on safety and the environment to promotebusiness activities that consider the environment. In 2009, we focused on activities
to lessen our environmental impact. This involved measures to reduce the amount ofdefects generated, as well as drastically increasing the company’ s recycling rate,
which was achieved by implementing processes to recycle resin scraps internallyand expanding the scope of this recycling. Furthermore, we are promoting theeffective use of resources, both at our company and amongst our group companies,
by getting everyone to reuse the cardboard boxes in which materials are delivered.
In addition, we are making positive efforts to reduce our CO 2 emissions. For
example, 1,500 fluorescent lamps that were located mainly in areas used for long
periods for work were replaced with energy-saving, long lasting LED lighting, said tobe the ‘lighting of the 21st century’ . We are also planning a ‘Plant afforestation (treeplanting group)’ to take place in March 2011, with the objective of improving the‘eco-mind' (environmentally-oriented mindset) of each individual employee.
In addition to these types of environmental activities, Tianjin TG has received many
awards from both Tianjin City and the Dongli Economic Development Area for its
contributions to various activities, such as employing the disabled, occupational
disease prevention activities, and safety activities. Other social contribution activities
have included making contributions to poorer areas through the Dongli Economic
Development Area Union, and sending donations to victims of the 2008 Sichuan
earthquake.

D ATA

Tianjin Toyoda Gosei
Co., Ltd.

LED system downlights● Location● Established● Capital● Business details

Development Area Tianjin, 300300, China
Dec, 1995
200 million yuan
Manufacturing of interior & exterior parts,
safety system products and functional components● ISO14001 certification acquired in February 2005
● OHSAS18001 certification acquired in January 2007

39 TOYODA GOSEI REPORT 2010

Award of merit received from
Dongli Economic Development
Area, Tianjin City

Legal Compliance Activity

Proper disposal and storage of equipment containing PCB

In order to observe the laws and regulations
while promoting corporate activities, we arearranging a strict survey and check management system.

Used electrical condensers and fluorescent stabilizers that
contain harmful and recalcitrant PCB (PolychlorinatedBiphenyl) are stringently stored, and we have now disposedof 65 such devices.

■ Established advanced wastewater processing
equipment at non-plant facilities as well

Number ofequipments

Situation of countermeasure

Condensers forelectricity use̶Properly disposed at the Toyota Office of the Japan
Environmental Safety Corporation in fiscal 2006 (65 units)

Fluorescentstabilizers

Approx.
1200

Appropriately stored (properly disposed sequentiallywhen PCB disposing facility is fully-equipped)

We conduct thorough water quality management for
wastewater generated by our plants. For plants that
dispose of wastewater in inland waterways and throughrivers in particular, we are striving to maintain the water
quality by installing nitrogen and phosphorus processing
equipment, which we have now installed at the Miwa
Technical Center and at the Suncourt Inokuchi employee
dormitory, in addition to at our plants.

We are taking action to investigate and purify
soil/groundwater contamination by toxic substances suchas trichloroethylene used as a cleaner in the past.
We installed observation wells at all plants to investigate any
contamination conditions, and have confirmed regularly that
there is no soil or groundwater contamination from oil orother substances targeted by the Soil Pollution
Countermeasures Law.

■ Changes in the Volume ■ Changes in the volume of ■ Changes in the Volumeof Nitrogen Emitted
phosphorus emissionsof COD* Emitted
1

10

'07

0

'08 '09'07(Fiscal year)'08 '09(Fiscal year)

0

3.0

'07

'08 '09(Fiscal year)

0'07'08 '09(Fiscal year)

Volume emitted (in tons)

Volume emitted (in tons)

71.5

70

10
3.4
0

'07

'08 '09(Fiscal year)

Strengthened management through activities promoting ‘Zero Cases of Non-compliance and Complaints’.
We are conducting activities promoting ‘Zero Cases ofNon-compliance and Complaints’ at Toyoda Gosei Group toe n s u r e t h o r o u g h c o m p l i a n c e . I n fi s c a l 2 0 0 9 , w e
independently analyzed information about incidents from 7
other companies. We inspected any equipment we had thatwas similar to any involved in the other companies’
incidents, and implemented measures to ensure that nocomparable incidents would occur at our company.

Corporate Data

As a measure against acid rain-causing nitrogen oxide(NOx) and sulfur oxide㧔SOx㧕being generated by theboilers or other equipment, our Morimachi Plant now
operates via a controlled number of boilers, where insteadof the previous one large boiler, several smaller boilers are
now used in order to adjust the load as needed.

20

Groundwater Purification in progress (proactively purifying while
the possibilities of off-site pollutions found)
Since the material without our use records was
Inazawa Plant Groundwater detected in the past, only measurement result isreported regularly to the government.

Financial Report

Conserving the atmosphere through controlled
operation of the number of boilers

140

Situation of countermeasure

After the excavation removal, purified soil was
Soilbackfilled and completed in 2006.
The former
We completed purification measures (in August of 2008)
Nagoya Plant Groundwater and continue to verify compliance with standard values inaccordance with regulations (until August, 2010)
Haruhi Plant

4(Target areas: the 4 plants in Haruhi, Inazawa, Heiwacho, and Seto Kitajima TechnicalCenter, Miwa Technical Center, Suncourt Inokuchi Employee Dormitory)*Chemical Oxygen Demand■ Changes in the Volume ■ Changes in the Volumeof Nitrogen Oxides
of Sulfur Oxides(NOx) Emitted(SOx) Emitted

Objects

Environmental Report00.5Volume emitted (in tons)

5

Volume emitted (in tons)

Volume emitted (in tons)

7.4

8
0.79

PlantsSocial Report

Conserving Soil & Groundwater

Management Report

Water quality management

Business Report

Highlights of fiscal 2009

Equipment
containing PCBStrengthening our waste management system
When consigning industrial waste disposal, the law requiresthat a manifest (control sheet for industrial waste) must be
delivered and collection managed. With the cooperation ofindustrial waste disposal contractors, Toyoda Gosei
switched from paper manifests to electronic manifests withthe objective of ensuring conclusive legal compliance andstreamlined operations. Implementation of this systembegan at all our plants from fiscal 2009.
Please refer to the homepage for environmental data.
http://www.toyoda-gosei.com/

TOYODA GOSEI REPORT 201040

Data Highlights

Business ReportManagement Report

Consolidated net sales for fiscal 2009 grew dramaticallyin our non-automotive parts businesses, thanks to anincrease in customer demand for white LED products forcomputers. However, the negative effects from a drop in
the number of cars produced in the first half of the fiscal
year greatly affected our staple business of automotive
parts, resulting in an overall decrease in earnings to 495
billion yen, down by 9.4% on the previous year’ s figureof 546.3 billion yen.
As for profit, Toyoda Gosei reaped the benefits of its
stringent activities to reduce total costs, such as shaving

down fixed expenses and streamlining raw costs in theautomotive parts business, particularly in the Japan andNorth American regions. This, together with increased
sales in our non-automotive parts businesses, especiallyin the LED field, boosted our overall ordinary income to26.5 billion yen, an increase of 118.6% on the previous
year’ s figure of 12.1 billion yen. Net income came to14.2 billion yen, a massive 260.8% increase on theprevious year’ s figure of 3.9 billion yen.
Financial data is published on the pages following.

■ Net Sales■ Ordinary Income /Net Income(billion yen)(billion yen)

700

60

662.4
593.4

600

Social Report

498.4

500

50.5

50

546.3
495.0

40

400

31.3

30

30.8
26.5

300
20.0

20

200

Environmental Report

100

10

0

0

15.9

14.2

12.1

10.7

3.9
2006

2007

2008

2010 (Years ended

2009

2007

2006

March 31)

■ Total net assets■ Capital Investment /R&D Expenses(billion yen)(billion yen)

54.9

Financial Report

253.9
250
200

Net Income

March 31)

53.1

50

229.9

224.5

2010 (Years ended

58.2

60

300

2009
Ordinary Income

2008

45.6

211.7
40

186.8

34.3
150

30

100

20

50

10

25.3

Corporate Data

0

2006

2007

2008

2009

2010 (March 31)

0

2006

24.3

2007

25.9

2008

2009

Capital Investment■ Changes in the Number of Employees

2010 (Years ended
March 31)

R&D expenses■ Number of employees by region (March 31)(People)21,000Europe and Africa
1,182(4.5%)

19,03718,00026.0

24.8

17,506

16,614

17,362

15,00011,80512,000
9,000
7,046

7,311

7,999

8,286

Asia and Number of
Oceania Employees
26,084
11,845(45.4%)

8,722

6,000

Japan
8,722
(33.5%)

North America
4,335(16.6%)

3,000
0
2006

2007

2008

2009

2010
Domestic

41 TOYODA GOSEI REPORT 2010

(March 31)

OverseasConsolidated Five-Year Financial Summary
Amount: thousands( Amount:)
millions of yen ) ( of U.S. dollars

Toyoda Gosei Co., Ltd. and its Consolidated Subsidiaries
Years ended March 31

2010

2009

2008

2007

2006

2010

¥495,002¥546,380¥662,497¥593,454¥498,427$5,320,313

Operating income

26,202

15,83352,12531,55019,676281,620

Ordinary Income

26,574

12,15550,541

31,34720,023285,619

Net Income

14,255

3,951

30,802

15,943

10,787

153,213¥233,425¥242,893¥279,701¥252,707¥199,804$2,508,867

Depreciation and amortization

43,007

41,25840,30936,82932,549462,242

Capital expenditures

35,19059,42954,612

55,69046,640378,224

R&D expenses

26,066

24,83725,98924,321

25,312

280,159

30.55¥ 238.61¥ 123.78

For The Year

Overseas sales

Business Report

Net Sales

Management Report

Per share of common stock (yen, U.S. dollars)
Net Income per share - basic¥ 110.19

Net income per share — diluted

110.1730.55

237.97

123.63

81.73

1.18

Total net assets per share

1,650.90

1,523.16

1,781.08

1,591.52

1,449.27

17.74

Cash Dividends per share

36

36

46

26

19

0.38

Total assets¥434,344¥391,757¥ 476,741¥459,087¥392,671$4,668,357

Total net assets

229,915

211,702

253,961

224,551

186,838

2,471,141

Common stock

28,02728,02728,02728,02728,027301,236

129,399

129,334

129,307

128,826

128,745

̶Net cash provided by operating income¥ 68,199¥ 47,843¥ 75,229¥ 67,325¥ 42,426

Net cash used in investing activities(36,574)(55,945)(55,291)(52,963)(48,566)(393,099)

Net cash provided by (used in) financing activities(7,426)

5,604(20,742)

9,307

4,939

(79,815)

Cash and cash equivalents at end of year

67,49042,70153,372

55,97029,535725,386Return on equity (ROE) (%)

6.9

1.8

14.2

8.1

6.1

̶

Return on assets (ROA) (%)

6.4

2.8

10.8

7.4

5.4

̶

Return on sales (ROS) (%)

5.3

2.9

7.9

5.3

3.9

̶

27.7%

31.4%

22.5%

32.7%

29.0%

̶

24.2

13.0

24.1

13.7

16.5

̶

67,65250,66689,49367,68752,297727,128

26,08425,792

27,03623,92518,851

̶

¥

¥

81.77

$

1.18

Social Report

At Year-End
Environmental Report

Number of shares outstanding (excluding
treasury stock) (thousands of shares)$

Financial Report

Cash Flows
733,007

Corporate Data

Indices

Debt/equity ratio (%)
Interest coverage (times)
EBITDA (millions of yen, thousands of U.S. dollars)
Number of employees at year-end

Note 1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥93.04 = US$1, the exchange rate on March 31. 2010.
Note 2. Net income per share, ROE and ROA are computed based on the average number of shares, total net assets and total assets, respectively, for each consolidated fiscal year.
Note 3. Debt/equity ratio = Interest-bearing debt / Total net assets
Note 4. Interest coverage = (Operating income + Interest and dividend income) / Interest expenses
Note 5. EBITDA = Income before income taxes + Interest expenses - Interest and dividends income + Depreciation and amortization

TOYODA GOSEI REPORT 201042

Consolidated Balance Sheets
Toyoda Gosei Co., Ltd. and its Consolidated Subsidiaries
March 31 2010 and 2009

■ ASSETS

Current assets
Business Report

Cash and cash equivalents(Amount: millions of yen)

2010

2009

¥198,537 ¥145,891
64,96042,785increase anddecrease■ LIABILITIES¥52,646

Current liabilities

22,175(Amount: millions of yen)

2010

2009

increase anddecrease¥130,857 ¥101,314¥29,542Management Report

65,04642,59322,452

Short-term bank loans

8,982

14,486(5,504)Current portion of long-termloans payable

10,37371

10,301

Accrued expenses

21,016

18,8342,182

Accrued income taxes

5,430

1,653

3,776

Provision for directors’ bonuses

314

223

91

Provision for product warranties

532

839

(306)

Deposits received from employees

4,492

4,601

(108)

Other current liabilities

14,66718,010(3,342)73,57278,740(5,168)Bonds

10,00010,0000Long-term bank loans

34,24541,839(7,594)

Deferred tax liabilities

1,894

1,820

74

Trade notes and accounts
receivable

88,41555,31033,105

Short-term investments

2,822

215

2,607

Inventories

26,66529,689(3,023)

Deferred tax assets

5,766

4,562

1,204

Other current assets

10,001

13,411(3,410)Less - allowance for
doubtful accounts

(94)

(82)

(11)

235,807245,866(10,059)

Property, plant and equipment

194,457

204,515(10,057)

Buildings and structures

64,64860,204

4,444

Provision for retirement benefits

23,73322,603

1,130(5,219)Reserve for retirement benefits for
directors and corporate auditors

1,925

1,562

362

Other long-term liabilities

1,773

915

857

¥204,429 ¥180,055¥24,374¥221,724 ¥209,766¥11,957

Fixed assets
Social Report

Trade notes and accounts payable

Environmental Report
Financial Report
Corporate Data

Machinery, equipment
and vehicles

75,069Tools, furniture and fixtures

25,233

26,741(1,508)Land

22,04921,713335

Construction in progress

7,456

15,566(8,110)

3,377

3,409

(31)

Goodwill

42

111

(68)

patent rights

97

187

(89)

Software

2,107

1,671

435

Other intangible assets

1,129

1,438

(309)

Investments and other assets

37,97237,94230

Investments in securities

23,041

19,361

3,679

prepaid pension expenses

65

1,531

(1,465)

Deferred tax assets

10,481

11,712(1,230)

Other investments and other assets

4,465

5,420

(955)

(82)

(84)

1

¥434,344 ¥391,757¥42,587

80,288Long-term liabilities

Total liabilities

Intangible assets■ NET ASSETS

Less - allowance for
doubtful accounts

Total

43 TOYODA GOSEI REPORT 2010

Shareholders’ equity
Common stock

28,02728,0270

Capital surplus

29,84429,81528

Retained earnings

165,195

153,409

11,785

Treasury stock at cost

(1,343)(1,486)

143

Valuation and translation adjustments(8,097)(12,769)

4,672

4,603

2,872

1,730

(12,700)(15,642)

2,941

Subscription rights to shares

626

413

213

Minority interests inconsolidated subsidiaries

15,662

14,292

1,369

Total net assets

229,915

211,702

18,212

Total liabilities and net assets¥434,344 ¥391,757¥42,587

Net unrealized gains or losses
on other securities
Foreign currency translation
adjustments

Consolidated Statements of Income
Toyoda gosei Co., Ltd. and its Consolidated Subsidiaries
For the years ended March 31, 2010 and 2009

(Amount: millions of yen)

434,332

492,302(57,969)

60,66954,0786,591

34,467

38,244(3,777)

26,202

15,833

10,368

5,189

4,418

770

Interest and dividends income

381

1,008

(627)

Equity in net earnings of affiliates

878

̶

878

3,929

3,409

519

Non-operating expenses

4,817

8,097

(3,279)Interest expenses

1,100

1,293

(192)

̶

1,629

(1,629)Foreign exchange losses

1,417

1,058

359

Other non-operating expenses

2,299

4,115

(1,815)

26,574

12,155

14,418

32

519

(486)

Reversal of Allowance for Bad Debts

4

26

(21)

Reversal from the Provision for Loss on Liquidation of Affiliates

̶

486

(486)

Others

28

6

21

2,680

3,549

(869)

151

9

142

2,527

3,477

(949)

0

62

(62)

23,9269,125

14,801

Income taxes — current

8,862

3,200

5,662

Income taxes - deferred(1,194)(1,005)(189)

Minority interests in consolidated subsidiaries

2,003

2,979

(975)

3,951

¥10,303

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Other non-operating income

Equity in net losses of affiliates

Ordinary Income
Extraordinary gains

Extraordinary losses
Investments in securities
Impairment loss on long-lived assets
OthersIncome before income taxes and minority interests

Net Income¥14,255¥

TOYODA GOSEI REPORT 2010

Corporate Data¥(51,378)

Financial Report¥546,380

Environmental Report¥495,002

Net Sales

Social Reportincrease and decrease

Management Report

2009

Business Report

2010

44

Consolidated Statements of Changes in Net Assets
Toyoda Gosei Co., Ltd. and its Consolidated Subsidiaries
For the year ended March 31, 2010 and 2009

Capital Capitalsurplus

Business Report

Balance at March 31, 2009Management Report

Net Income for the period(Amount: millions of yen)
Net
Total
Minority
Foreignunrealized
Total
Total
valuation Subscription interests
Retained Treasury shareholders' gains or currency
and
in
net
stock
rightstolossestranslationtranslation
earnings
consolidated
on other adjustments adjustments
assetsequityat costsharessubsidiaries
securities¥28,027 ¥29,815 ¥153,409 ¥(1,486) ¥209,766¥2,872 ¥(15,642) ¥(12,769)¥413 ¥14,292 ¥211,702

Changes of items during the period
Dividends paid
Increase(decrease)due to the changes inaccounting term of consolidated subsidiaries(3,363)(3,363)(3,363)

893

893

893

14,255

14,255

14,255

(2)

(2)

(2)

145

174

174

Repurchase of treasury stock
Disposal of treasury stock

28

Change to items other than shareholders’equity during accounting period

Changes of items during accounting period

28

11,785143

11,957

1,730

2,941

4,672

213

1,369

6,255

1,730

2,941

4,672

213

1,369

18,212Social Report
Environmental Report

Balance at March 31, 2010

¥28,027 ¥29,844 ¥165,195 ¥(1,343) ¥221,724¥4,603 ¥(12,700) ¥(8,097)¥626 ¥15,662 ¥229,915

Balance at March 31, 2008

¥28,027 ¥29,813 ¥158,574 ¥(1,548) ¥214,867¥7,316¥221 ¥23,434 ¥253,961¥8,122 ¥15,438

Changes of items during the period(6,336)(6,336)(6,336)

Increase(decrease) due to increase in theaffiliates accounted for under the equity method

216

216

216

Increase(decrease)due to the changes in accounting
treatment of controlled foreign subsidiaries(2,793)(2,793)(2,793)

Increase(decrease)due to the changes inaccounting term of consolidated subsidiaries

(202)

(202)

(202)

Net Income for the period

3,951

3,951

3,951

(4)

(4)

(4)

65

68

68

Dividends paid
Financial Report
Corporate Data

Repurchase of treasury stock
Disposal of treasury stock

2

Change to items other than shareholders’equity during accounting period

Changes of items during accounting period
Balance at March 31, 200945 TOYODA GOSEI REPORT 2010

(4,443) (23,764) (28,208)

191(9,141) (37,158)(5,100)(4,443) (23,764) (28,208)

191(9,141) (42,258)¥28,027 ¥29,815 ¥153,409 ¥(1,486) ¥209,766¥2,872 ¥(15,642) ¥(12,769)¥413 ¥14,292 ¥211,702

2(5,164)61

Consolidated Statements of Cash Flows
Toyoda Gosei Co., Ltd. and its Consolidated Subsidiaries
For the year ended March 31, 2010 and 2009

¥68,199¥47,843¥20,356

23,9269,125

14,801

43,007

41,258

1,749

2,527

3,477

(950)

52

39

13

11

(11)

22

(219)

(594)

375

̶

(2,224)

2,224

858

285

573

1,465

411

1,054
346

362

16

(381)

(1,008)

627

1,100

1,293

(193)

600

123

477

(878)

1,629

(2,507)

151

9

142

̶

60

(60)

651

555

96

(33,347)

37,973(71,320)

433

3,104

1,913

(3,704)

26,169(33,073)

59,242

(639)

1,049

(1,688)

280

311

(31)

67,44563,054

4,391

400

1,034

(634)

(1,292)

197

1,448

(14,953)

16,401(36,574)(55,945)

19,371

(25)

(376)

351

40

133

(191)

(18)

(37,518)(56,582)

19,064

920

1,427

(507)

83

(262)

345

(7,426)

5,604(13,030)(6,114)(2,209)(3,905)

3,891

16,209(12,318)(1,257)(1,285)

20

35

227

(192)

152

66

86

(2)

(4)

2

(3,362)(6,336)

2,974

(619)

(1,062)

443

(149)

̶

(149)

439

(4,746)

5,185

24,637(7,244)31,88142,70153,372(10,671)4,548

̶

(4,548)

151

1,122

(971)

¥67,490¥42,701¥24,789

TOYODA GOSEI REPORT 2010

Corporate Data

173
(209)

Financial Report(1,095)

Environmental Report

3,537(1,791)Social Report

Cash and cash equivalents at end of year

increase and decrease

Management Report

Amount of increase of cash and cash equivalent of beginning of period due to changes in the accounting period of consolidated subsidiaries

2009

Business Report

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for Loss on Liquidation of Affiliates
Increase (decrease) in provision for retirement benefits
Increase (decrease) in prepaid pension expenses
Increase (decrease) in reserve for retirement benefits for directors and corporate auditors
Interest and dividends income
Interest expenses
Foreign exchange gain and loss
Equity in net earnings of affiliates
Investments in securities appraisal loss and sale profit and loss
Share change profit and loss
Loss on sales or disposal of property, plant and equipment, net
Increase (decrease) in receivables
Increase (decrease) in inventories
Increase (decrease) in other current assets
Increase (decrease) in payables
Increase (decrease) in other current liabilities
Others, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) received
Cash flows from investing activities
Payments for purchases of investment securities
Proceed from sales and redemption of investments in securities
Payment from the acquisition of the subsidiary company stocks
Payment for intangible assets and purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Others, net
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term loans
Repayments of long-term loans
Proceeds from payment by minority shareholders
Proceed from disposal of treasury stock
Payments for repurchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Others, net
Translation adjustments of cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Amount of increase(decrease)of cash and cash equivalent due to the changes in the consolidation scope(Amount: millions of yen)

2010

46

Corporate Data
Global Network

With 44 facilities in 16 nations and regions around the world (Except Japan)

As of June.2010
豊田合成（天津）精密製品有限公司

Toyoda Gosei UK Ltd.

Business Report

Toyoda Gosei（Tianjin）Precise Plastic Co., Ltd.
Toyoda Gosei Europe N.V.

天津豊田合成有限公司

Tianjin Toyoda Gosei Co., Ltd.

Toyoda Gosei Europe N.V. Germany Office

天津星光橡塑有限公司

Tianjin Star Light Rubber and Plastic Co., Ltd.

豊田合成（張家港）科技有限公司

Toyoda Gosei（Zhangjiagang）Co., Ltd.

Management Report

豊田合成（張家港）塑料製品有限公司

Toyoda Gosei（Zhangjiagang）Plastic Parts Co., Ltd.

豊田合成（上海）商務諮詢有限公司

South Yorkshire

Toyoda Gosei（Shanghai）Co., Ltd.
Klasterec (Czech)

豊田合成光電貿易（上海）有限公司

Toyoda Gosei Czech, s.r.o.
LEXEDIS Lighting GmbH

Zaventem (Belgium)
Saarbrucken

Toyoda Gosei Opto-Electronics（ Shanghai）Co., Ltd.

Jennersdorf (Austria)

Social Report

Tianjin
本社 Headquarters

Zhangjiagang

Metzeler Automotive Profiles India Pvt. Ltd.

ShanghaiFuzhouToyoda Gosei India Pvt. Ltd.

Ghaziabad
RajasthanBangalore

FoshanHaiphong

Taiwan福州福裕橡塑工業有限公司

Fuzhou Fu-Yue Rubber & Plastic Industrial Co., Ltd.

台裕橡膠工業股 有限公司 Tai-yue Rubber Industrial Co., Ltd.
豊裕股 有限公司 Fong Yue Co., Ltd.

Chonburi
Samutsakorn

Environmental Report

豊田合成（佛山）橡塑有限公司 Toyoda Gosei（Foshan）Rubber Parts Co., Ltd.
豊田合成（佛山）汽車部品有限公司 Toyoda Gosei（Foshan）Auto Parts Co., Ltd.

Toyoda Gosei Haiphong Co., Ltd.
Jakarta

TG Kirloskar Automotive Pvt. Ltd.

Financial Report

DurbanSouth Australia

Toyoda Gosei South Africa（Pty）Ltd.

Bridgestone TG Australia（Pty）Ltd.
P.T. INOAC TG Indonesia
P.T. Toyoda Gosei Safety Systems Indonesia
Toyoda Gosei Asia Co., Ltd.
Toyoda Gosei（Thailand）Co., Ltd.

Corporate Data

Toyoda Gosei Rubber（ Thailand）Co., Ltd.
Pongpara Codan Rubber Co., Ltd.

Headquarters

Kitajima Technical Center

Miwa Technical Center

Toyoda Gosei Czech, s.r.o.

Toyoda Gosei Asia Co., Ltd.

Tianjin Toyoda Gosei Co., Ltd.

47 TOYODA GOSEI REPORT 2010

Haruhi Plant

Toyoda Gosei North America Corporation

Production Items
Interior & exterior parts
Body sealing products

Business Report

Functional parts
Safety system products
Optoelectronic products
General industry products

TG Kentucky, LLC
Daicel Safety Systems America, LLC
TG Automotive Sealing Kentucky, LLC

Toyoda Gosei Holdings Inc.
Waterville TG Inc.

Management Report

Toyoda Gosei North America Corporation
TG Personnel Services North America, Inc.
TGR Technical Center, LLC
TG Fluid Systems USA Corporation

Iwate Plant

QuebecSaga Plant

Ontario

Kitakyusyu Plant

TG Minto Corporation

Hiroshima Sales BranchMichigan

Utsunomiya Sales Branch

KentuckyMissouriSocial Report

Osaka Sales BranchTokyo Sales Branch

TG Missouri Corporation
Texas
Matamoros

Toyoda Gosei Texas, LLC
TAPEX Mexicana S.A. DE C.V.

Kanagawa Plant
Fukuoka Plant

San Luis Potosi

Environmental Report

Bisai Plant
Inazawa Plant
Headquarters

Toyoda Gosei Automotive Sealing Mexico S.A. DE C.V.
Toyoda Gosei Personnel Services Mexico S.A. DE C.V.

Haruhi Plant
Seto Plant
Nagoya City

Kitajima Technical Center

Financial Report

Miwa Technical Center
Shizuoka pref.

Aichi pref.

Nishimizoguchi Plant
Heiwacho Plant

Morimachi Plant

Corporate Data

Inazawa Plant

Morimachi Plant

Bisai Plant

Heiwacho Plant

Seto Plant

TG Missouri Corporation

TOYODA GOSEI REPORT 201048

Corporate Data

Executive structure

As of June 25, 2010

Business Report

Directors
Chairman of the Board

Management Report

Akio Matsubara

President

Hajime Wakayama

Executive Vice Presidents

Social Report

Tadashi Arashima

Muneo Furutani

Senior Managing Directors

Kuniaki Osaka

Takayasu Hiramatsu

Yuichi Shibui

Takasuke Haruki

Environmental ReportManaging Directors

Hiromi Ikehata

Noboru Kato

Yoshiaki Takei

Nobuo Fujiwara

Kuniyasu Ito

Nobuyuki Shimizu

Masayoshi Ichikawa

Yukio Kawakita

Financial Report

Directors

Kazumi Otake

Kyoji Ikki

Daisuke Kobayashi

Kanji Kumazawa

Kinichi Nishikawa

Tomonobu Yamada

Corporate Data

Corporate Auditors
Standing Corporate Auditors

Hiroyuki Ioku

Koichi Ota

Yasushi Matsui

Corporate Auditors

Kazuo Okamoto

49 TOYODA GOSEI REPORT 2010

Tsuchio Hosoi

Atsushi Sumida
Shinichi Goto

Company Profile

As of March 31, 2010

Location of Headquarters

1 Haruhinagahata, Kiyosu, Aichi

Transfer agent

Number of employees

Consolidated
Non-consolidated

Fiscal year end

March 31

Major Share holders(Ten from the top)

26,084
7,061

Authorized 200,000,000 shares
130,010,011 shares

Names of shareholders

Investment
Number of
ratio
share holding(%)

Toyota Motor Corporation

55,45942.65

Nagoya Stock Exchange

The Master Trust Bank of Japan, Ltd. (Trust Account)

8,555

6.58

Japan Trustee Services Bank, Ltd. (Trust Account)

5,287

4.06

Sumitomo Mitsui Banking Corporation

5,049

3.88

Japan Trustee Services Bank, Ltd. (Trust Account 9)

1,733

1.33

Nippon Life Insurance Company

1,714

1.31

Mitsui Sumitomo Insurance Co., Ltd.

1,661

1.27

7-10-11 Higashi-suna,Koto-ku,Tokyo

The Dai-ichi Mutual Life Insurance Company

1,493

1.14

Mitsubishi UFJ Trust and Banking

Tokio Marine & Nichido Fire Insurance Co., Ltd.

1,465

1.12

Corporation Stock Transfer Agency

Aioi Insurance Co., Ltd.

1,200

0.92

14,277 people
Mitsubishi UFJ Trust andBanking Corporation‫ޥ‬137-8081

Financial Report(thousand shares)

Tokyo Stock Exchange andEnvironmental Report

Number of Shareholders

28,027 million yen

As of March 31, 2010

IssuedStock Exchange Listings

CapitalSocial Report

Common stock

June 15, 1949

Management Report

Stock Information

Date of Establishment

Business Reportcompany emblem / corporate name

TEL.0120-232-711 (Toll free number)
Share Price Range
(¥)

5,000

Stock Price

Corporate Data

4,000

3,000

2,000
← High

1,000

← Low

0
(thousand shares)

20,000

Trading Volume

10,000
0
2006
2007
2008
2009
2010
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 (Month)

TOYODA GOSEI REPORT 201050

Treating Humans andthe Earth Nicely

With regard to “creating an environment that is kind
to both people and the earth” and from the perspective of environmental conservation and the valid useof resources, three points, three things on which weneed to base our actions are “Don’t make (“Don’tuse”) [Tsukuranai],”“Don't throw away [Sute-nai],” and“Don’t leave it to others [Makase-nai].” Together,
these phrases make the slogan “Nicely” (the three“nai's”, which sounds like “Nicely” when pronouncedwith a Japanese accent). “Treating humans and theearth nicely” is the trademark of Toyoda Gosei's
environmental activities.

General Administration Division, General & Public Affairs Dept.

1 Haruhinagahata, Kiyosu, Aichi, 452-8564, Japan
Tel: +81-52-400-1055 Fax: +81-52-409-7491

http://www.toyoda-gosei.com/

This report is made of FSC certified papers from well managed forest. The ink uses vegetable oil containing no
VOC (volatile organic compounds) and is printed using a printing process that creates no harmful waste liquids.

CO2 emissions 654g-CO2(PerEQR[)

CO2 emissions have been calculated for all processes from ‘the acquisition of raw
materials through to the production stage’ using an independent method based on
the PCR (Product Category Rule) Standards released by CFP Calculation & Labeling
Pilot Program in accordance with the Carbon Footprint System.

Please recycle this publication.
2010.09.3,500

TP JapanTOYODA GOSEI REPORT 2010

Environmental Data【

Period

【

Air

【

Water

】• April, 2009 to March, 2010】• Units are as follows: NOx = ppm, PM (particulate matter) = mg/Nm3 • ND: below the minimum determination limit (not detected)• Values shown in the results column are averages of the results of the measurements.

】• Units are all in mg/L except for pH • pH: hydrogen ion concentration • BOD: Biochemical Oxygen Demand • SS: concentration of suspended solids in water• ND: below the minimum determination limit (not detected) • Values shown in the results column are averages of the results of the measurements.

【 Groundwater】• Units are all in mg/L • ND: below the minimum determination limit (not detected).
【 PRTR* Data 】• Units are in kg *Values less than 1kg are rounded up if ≥0.5 and down if 0.5. There are some cases in which values for total volume and volume handled are not in agreement.

*Pollutant Release and Transfer Register (the registration system monitoring emissions of substances that pollute the environment and moves/transfers of them)

Data on Main Domestic Plants

Haruhi Plant
1 Haruhinagahata
Kiyosu, Aichi, Japan
452-8564
Main Products■Air (Air Pollution Control Law, prefectural regulations, etc.)
Item measured
Dust

NOx

• Functional parts■Water (Water Pollution Control Law, prefectural regulations, etc.)
Regulation value

Result5.8~8.6

7.5

BOD (Biochemical Oxygen Demand)

25

4.3

44

SS

30

1.1

108

Oil content

5

ND

Total nitrogen

120

1.6

Total phosphorus

16

0.7

Thiram0.06

ND

Fluorine

80.2

Item measured

Regulation value

ResultBoilers (gas)

0.1

0.005

pH

Co-generation (gas)

0.05

0.008

Boilers (gas)150

Co-generation (gas)600■Groundwater
Environmental
Standard

ResultTrichloroethylene

0.03

ND~0.004

Cis-1,2-Dichloroethylene

0.04

ND~0.073

Item measured*Refer to Toyoda Gosei Report P.40

■No violations of laws, etc. ■No complaints■PRTR Data

Morimachi Plant
1310-128 Mutsumi,Mori, Shuchi,
Shizuoka, Japan
437-0213
Main Products

Volume moved

Volume emitted

Substance nameAmounthandledInto the air

Into bodies ofwater

Into the groundBis (2-ethylhexyl) adipate

1,177

0

0

0

0

177

0

0

1,000

2-imidazolidin thionate

4,789

0

0

0

0

698

7

0

4,084

N-cyclohexyl-2-benzothiazole
sulfenic amide

5,623

0

0

0

0

856

33

0

4,734

Thiram

7,387

0

0

0

0

399

0

0

6,988

Di-n-butyl phthalate

1,188

0

0

0

0

178

0

0

1,010

Bis (2-ethylhexyl) phthalate

4,206

0

0

0

0

612

7

0

3,588

Volume moved Volume moved
via sewers
as waste■Air (Air Pollution Control Law, prefectural regulations, etc.)
Item measured

Volumerecycled

Total removed Total consumed(processed)(products)■Water (Water Pollution Control Law, prefectural regulations, etc.)

Regulation value

Result

Dust

Boilers (heavy oil)

0.25

0.01

NOx

Boilers (heavy oil)

180

90

Item measured

Regulation value

Result5.8~8.5

7.6

BOD (Biochemical Oxygen Demand)

25

6.0

SS

50

6.5

Oil content

5

0.5

Thiram

0.06

0.005

Zinc

0.5

0.2

pH

■No violations of laws, etc. ■No complaints• Body sealing products• Functional parts■PRTR Data
Substance nameAmounthandledVolume emitted
Into the air

Into bodies ofwater

Volume moved
moved Volume moved
Into the ground Volume
via sewers
as wasteVolumerecycled

Total removed Total consumed(processed)(products)

Antimony and its compounds

4,745

0

0

0

0

237

47

0

4,461

2-imidazolidin thionate

10,156

0

0

0

0

406

406

0

9,344

Ethylbenzene

15,394

11,268

0

0

0

3,140

246

0

739

Xylene17,80913,064

0

0

0

3,660

271

0

814

N-cyclohexyl-2-benzothiazole
sulfenic amide

10,375

0

0

0

0

415

415

0

9,545

Thiuram

18,347

0

0

0

0

991

0

0

17,356

1,3,5-trimethylbenzene

1,199

878

0

0

0

245

19

0

58

Toluene54,297

34,16400

0

17,397

1,185

0

1,552

Bis zinc(N,N-dimethyldithiocarbamic acid)

6,554

0

0

0

0

262

262

0

6,029

Di-n-butyl phthalate

20,790

0

0

0

0

1,040

208

0

19,543Bis (2-ethylhexyl) phthalate

4,084

0

0

0

0

142

29

0

3,913

Phthalic anhydride

1,235

0

0

0

0

57

11

0

1,166

Heiwacho Plant■Air (Air Pollution Control Law, prefectural regulations, etc.)

710 Origuchi,
Shimomiyake, Heiwa,
Inazawa, Aichi, Japan
490-1312

Dust

Main Products

NOx• Body sealing products• Functional parts• Safety system products• Optoelectronic products■Water (Sewerage Law, prefectural regulations, etc.)

Regulation value

ResultRegulation value

ResultBoilers (heavy oil)

0.15

ND

pH

5~9

7.2

Boilers (gas)

0.05

ND

BOD (Biochemical Oxygen Demand)

600

39

Co-generation (gas)

0.05

0.008

SS

600

23

Boilers (heavy oil)

140

70

Oil content

30

0.8

Boilers (gas)

120

36

Total nitrogen

240

9.9

Co-generation (gas)

200

102

Total phosphorus

32

0.7

Fluorine

80.3

Item measured

Item measured■No violations of laws, etc. ■No complaints■PRTR Data
Substance nameInazawa Plant
1 Komeyasakai,
Kitajima, Inazawa,
Aichi, Japan
492-8542
Main Products• Interior and exterior parts• Functional parts

AmounthandledInto the air

Volume emitted

Volume moved

Into bodies ofwater

Into the ground

Volume moved Volume moved
via sewers
as wasteVolumerecycled

Total removed Total consumed(processed)(products)

2-aminoethanol

63,094

6

0

0

126

62,962000Ethylbenzene

5,079

4,012

0

0

0

660

102

0

305

Xylene

6,363

5,027

0

0

0

827

127

0

382

Toluene

8,259

6,524

0

0

0

1,074

165

0

496

■Air (Air Pollution Control Law, prefectural regulations, etc.)
NOx■Water (Water Pollution Control Law, prefectural regulations, etc.)

Regulation value

ResultBoilers (gas)

150

51

pH

Co-generation (gas)

600

126

Item measured

Item measured■Groundwater
Environmental
Standard

ResultTrichloroethylene*1

0.03

ND~0.004*2

Cis-1.2-Dichloroethylene*1

0.04

ND~0.056*2

Item measured*1 Substances that have no record of being used. *2 Refer to Toyoda Gosei Report P.40

■No violations of laws, etc. ■No complaints

Regulation value

Result5.8~8.6

7.1

BOD (Biochemical Oxygen Demand)

25

6.1

SS

30

1.8

Oil content

5

ND

Total nitrogen

120

14.9

Total phosphorus

16

1.4

Hexavalent chromium

0.5

ND

Total chromium

2

0.06

Copper1

0.07

Fluorine

8

0.2

Boron

10

5

■PRTR Data
Substance nameAmounthandledVolume emitted

Volume moved

Into the air

Into bodies ofwater

Into the ground

Volume moved Volume moved
via sewers
as wasteVolumerecycled

Total removed Total consumed(processed)(products)

Ethylbenzene

6,849

5,411

0

0

0

890

137

0

Xylene14,378

11,359

0

0

0

1,869

288

0

863

Chromium and trivalentchromium compounds

6,955

0

56

0

0

5,509

0

0

1,391

Hexavalent chromium compounds

7,906

0

0

0

0

0

0

7,906

0

Copper water-soluble salts(excluding complex salts)

6,181

0

62

0

0

4,636

0

0

1,484

Toluene42,62433,551

0

0

0

5,663

873

0

2,536

Nickel metals

78,503

0

0

0

0

0

0

78,5030

Nickel compounds

91,811

0

18

0

0

11,9170079,876

Bis (2-ethylhexyl) phthalate

3,883

1

0

0

0

272

0

0

3,610

Boric acid and its compounds

1,294

0

13

0

0

970

0

0

310

411

TOYODA GOSEI REPORT 2010

Environmental Data
】 • April, 2009 to March, 2010【

Period

【

Air

【

Water

】 • Units are all in mg/L except for pH • pH: hydrogen ion concentration • BOD: Biochemical Oxygen Demand • SS: concentration of suspended solids in water【

Ground】 • Units are all in mg/L • ND: below the minimum determination limit (not detected).

】 • Units are as follows: NOx = ppm, PM (particulate matter) = mg/Nm3 • ND: below the minimum determination limit (not detected)• Values shown in the results column are averages of the results of the measurements.

• ND: below the minimum determination limit (not detected) • Values shown in the results column are averages of the results of the measurements.

【 Groundwater 】 • Units are all in mg/L • ND: below the minimum determination limit (not detected).
【 PRTR* Data 】 • Units are in kg *Values less than 1kg are rounded up if ≥0.5 and down if 0.5. There are some cases in which values for total volume and volume handled are not in agreement.

*Pollutant Release and Transfer Register (the registration system monitoring emissions of substances that pollute the environment and moves/transfers of them)

Bisai Plant■Air (Air Pollution Control Law, prefectural regulations, etc.)
Item measured

40 Higashishimoshiro,
Meichi, Ichinomiya,
Aichi, Japan
494-8502

Dust

Main Products

NOx• Interior and exterior parts• Safety system products■Water (Sewerage Law, prefectural regulations, etc.)

Regulation value

ResultBoilers (heavy oil)

0.3

0.005

Boilers (gas)

0.05

ND

Co-generation (gas)

0.05

0.004

Boilers (heavy oil)

180

68

Boilers (gas)

150

66

Co-generation (gas)

600

112

Item measured

Regulation value

Result5.7~8.7

6.8

BOD (Biochemical Oxygen Demand)

300

37.2

SS

300

7.2

Oil content

30

2.3

pH

■No violations of laws, etc. ■No complaints■PRTR Data
AmounthandledVolume emitted

Volume moved

Into the air

Into bodies ofwater

Into the ground

Volume moved Volume moved
via sewers
as waste

Ethylbenzene

14,582

11,520

0

0

0

1,896

292

0

875

Xylene19,576

15,465

0

0

0

2,545

392

0

1,175

Toluene53,15742,002

0

0

0

6,919

1,059

0

3,177

Substance nameSeto Plant
141 Sosaku, Seto,
Aichi, Japan
489-0843

Regulation value

ResultItem measured

Kanagawa Plant
19-5 Suzukawa,
Isehara, Kanagawa,Japan 259-1146
Main Products• Interior and exterior parts• Functional parts

Regulation value

Result5.8~8.6

7.6

BOD (Biochemical Oxygen Demand)

20

1.9

SS

20

0.3

Total nitrogen

10

1.8

Total phosphorus

4

0.01

Dust

Boilers (kerosene)

0.2

ND

pH

NOx

Boilers (kerosene)

150

64

Main Products• Interior and exterior parts

Total removed Total consumed(processed)(products)■Water (Water Pollution Control Law, prefectural regulations, etc.)■Air (Air Pollution Control Law, prefectural regulations, etc.)
Item measured

Volumerecycled■No violations of laws, etc. ■No complaints■PRTR Data
Substance name
TolueneAmounthandledVolume emitted

Volume moved

Into the air

Into bodies ofwater

Into the ground

Volume moved Volume moved
via sewers
as waste

1,249

987

0

0

0

162

Volumerecycled

25

Total removed Total consumed(processed)(products)

075

Kitakyushu Plant
1-2 Kitahoraoka Maeda,
Yahatahigashi,
Kitakyushu, Fukuoka,
Japan 805-0058■PRTR Data
Substance name
TolueneVolume moved
moved Volume moved
Into the ground Volume
via sewers
as wasteVolume emitted

AmounthandledInto the air

Into bodies ofwater

15,332

11,876000Volumerecycled

2,294

Total removed Total consumed(processed)(products)

290

0

871

Main Products• Interior and exterior parts• Body sealing products• Functional parts• Safety system products

Fukuoka Plant■Water (Water Pollution Control Law, prefectural regulations, etc.)■No violations of laws, etc. ■No complaints

Regulation value

Result5.8~8.6

7.7

BOD (Biochemical Oxygen Demand)

10

2.1

SS

25

2.7

Oil content

2

ND

Item measuredpH

2223-1 Kurahisa,
Miyawaka, Fukuoka,
Japan 823-0017
Main Products• Interior and exterior parts• Functional parts• Safety system products■PRTR Data

Saga Plant
9966-9 Kawako,
Wakaki, Takeo,
Saga, Japan 843-0151

Volume moved
moved Volume moved
Into the ground Volume
via sewers
as wasteVolume emitted

AmounthandledInto the air

Into bodies ofwater

Xylene

2,389

1,887

0

0

0

311

48

0

143

Toluene

9,557

7,531

0

0

0

1,267

190

0

570

Substance name■Air (Air Pollution Control Law, prefectural regulations, etc.)
Item measured

The Former
Nagoya Plant

Result

Dust

Boilers (gas)

0.1

0.004

NOx

Boilers (gas)

150

52

1-23-13 Kikui, Nishi,
Nagoya, Aichi, Japan
451-0044■No violations of laws, etc. ■No complaints■Groundwater
Item measured

Regulation value

Total removed Total consumed(processed)(products)■Water (Water Pollution Control Law, prefectural regulations, etc.)

Regulation value

Main Products• Optoelectronic Products

Volumerecycled

ResultTrichloroethylene

0.03

ND

Cis-1,2-Dichloroethylene

0.04

ND~0.008*Refer to Toyoda Gosei Report P.40

Item measured

Regulation value

Result5.8~8.6

6.8

BOD (Biochemical Oxygen Demand)

20

6.5

SS

50

7.3

Oil content

5

0.4

pH

TOYODA GOSEI REPORT 2010

Environmental Data

Resource Input and Output to the Environment in Business Activities in ﬁscal 2009INPUTOUTPUT

Business activities
Challenges

Total Material Input
Resin

30,009t

Rubber(rubber sheet)

22,411t

Excluding purchased parts,
metal and liquid

Total energy input

Development Design

52,420t

Products● Improve the efﬁciency of gas
mileage● Develop parts for hybrids andfuel-cell vehicles as well as parts
that can be used with bio-energy● Recycling techniques and plans● Abolish the use of banned
substances, and reduce the useof VOC*3 in car interiors

Interior and exterior parts
Body sealing products
Functional parts
Safety system products
Optoelectronic productsHome appliance partsand others

3,220,000GJ*1

Purchased
electricity:

1,660,000GJ

Procurement

City gas:

1,370,000GJ● Achieve complete control over theuse of substances that have anenvironmental impact, including indelivered parts, raw materials,
and production facilities.

LPG:

60,000GJ

Heavy oil:

110,000GJ

Kerosene:

20,000GJ

Production
Water resource input 2,000,000m3
Industrial water: 970,000m3
Clean water: 320,000m3
Underground 710,000m3
water:● Reduction of CO2 emissions● Reduction of environmentally
harmful substances● Reduction of waste and materials
discarded● Promote the recycling of materials

Transportation
PRTR*2 substances usage

650t● Reduce CO2 emissions by making
improvements in transportation● Reduction of packaging materials,
and improvement of reuse rate

Use
● Improvement of fuel economy● Reduction of environmentally
harmful substances

Recycling Reuse● Improvement of recyclability ofused vehicle parts*1 Gigajoule (1,000,000,000 joules)*2 Pollutant Release and Transfer Register*3 Volatile Organic Compounds*4 Sulfur Oxide*5 Nitrogen Oxide

Emitted into the atmosphere5.7~8.7
300
300
30

CO2:
116,000t-CO2
SOx*4:
3.4t
NOx*5:
71.5t
Dust:
2.6t
Volume of substances 217t
subject to PRTR:

Waste discharge
0t
Landﬁll waste:
14t
Incinerated waste:
9,052tIndustrial waste:
271t
General waste:
For-proﬁt disposal 5,818t
by sale:Volume of substances 144t
subject to PRTR:

Waste Water
Total waste 1,420,000m3
water:
Volume of substances
0.2t
subject to PRTR:TOYODA GOSEI REPORT 2010

Environmental DataGRI Guidelines and the corresponding cross referenced pages
Guideline items

Main corresponding pages

1. Strategy and Analysis
1.1

1.2

P3-4

Description of key impacts, risks, and opportunities.

P3-4, 17-18

4.11

P50
P9

2.1

Name of the organization.

2.2

Primary brands, products, and/or services.

2.3

Operational structure of the organization,
including main divisions, operatingcompanies, subsidiaries, and joint ventures.

P47-48

2.4

Location of organization’s headquarters.

P50

2.5

Number of countries where the organization
operates, and names of countries with either
major operations or that are speciﬁcally
relevant to the sustainability issues coveredin the report.
Markets served (including geographic
breakdown, sectors served, and types ofcustomers/beneﬁciaries).

2.8

2.10

P47-48

P41

Awards received in the reporting period.

P20

Date of most recent previous report (if any).
Reporting cycle (annual, biennial, etc.)

P1
P1

3.4

Contact point for questions regarding thereport or its contents.

P1

Report Scope and Boundary

3.11

Signiﬁcant changes from previous reporting
periods in the scope, boundary, or
measurement methods applied in the report.

P1

Table identifying the location of the Standard
Disclosures in the report.Identify the page
numbers or web links where the following canbe found.

4.2

4.6
4.8

4.9

4.10

Governance structure of the organization, including
committees under the highest governance body
responsible for speciﬁc tasks, such as setting
strategy or organizational oversight.
Indicate whether the Chair of the highest
governance body is also an executive ofﬁcer(and, if so, their function within theorganization’s management and the reasonsfor this arrangement).
Processes in place for the highest
governance body to ensure conﬂicts ofinterest are avoided.
Internally developed statements of mission orvalues, codes of conduct, and principles
relevant to economic, environmental,
and social performance and the status of
their implementation.
Procedures of the highest governance bodyfor overseeing the organization’s
identiﬁcation and management of economic,
environmental, and social performance,
including relevant risks and opportunities,
and adherence or compliance withinternationally agreed standards, codes ofconduct, and principles.
Processes for evaluating the highest
governance body’s own performance,
particularly with respect to economic,
environmental, and social performance.

5. Management Approach and Performance Indicators
Economic Performance
Direct economic value generated anddistributed, including revenues, operating
costs, employee compensation, donations
and other community investments, retained
earnings, and payments to capitalproviders and governments.

P41-46

Financial implications and other risks andopportunities for the organization’s activities
due to climate change.

P37

Policy, practices, and proportion of spendingon locally-based suppliers at signiﬁcantlocations of operation.

P25

Development and impact of infrastructure
investments and services provided primarily
for public beneﬁt through commercial, inkind,or pro bono engagement.

P26-27

Environmental Performance Indicators
Materials
EN1
EN2

Materials used by weight or volume.
Percentage of materials used that arerecycled input materials.

Homepage
P33, homepage

EnergyEN3

Direct energy consumption by primary energy
source.

Homepage

EN4

Indirect energy consumption by primary source.

Homepage

EN5

P31

P2

EN6

Energy saved due to conservation andefﬁciency improvements.
Initiatives to provide energy-efﬁcient or
renewable energy based products andservices, and reductions in energy
requirements as a result of these initiatives.
Initiatives to reduce indirect energy
consumption and reductions achieved.

P31

P2
P2

EN7

P2

P15

P31-35, 38

Water
EN8

Total water withdrawal by source.

EN9

4. Governance, Commitments, and Engagement
Governance
4.1

P19-27P1

GRI Content Index
3.12

4.17

Indirect Economic Impacts

3.3

3.9

P19-27

Key topics and concerns that have beenraised through stakeholder engagement, andhow the organization has responded to those
key topics and concerns, including throughits reporting.

EC8

3.2

3.7

Approaches to stakeholder engagement,
including frequency of engagement by typeand by stakeholder group.

Market Presence

P1

Boundary of the report (e.g., countries,
divisions, subsidiaries,leased facilities, joint
ventures, suppliers).
State any speciﬁc limitations on the scope orboundary of the report.
Data measurement techniques and the bases ofcalculations, including assumptions and techniques
underlying estimations applied to the compilation of
the Indicators and other information in the report.

P1

4.16

EC6

Reporting period (e.g., ﬁscal/calendar year)
for information provided.

3.6

List of stakeholder groups engaged by theorganization.

EC2

3.1

Process for deﬁning report content, including:• Determining materiality;• Prioritizing topics within the report; and• Identifying stakeholders the organization
expects to use the report.

P17-18

Stakeholder Engagement

P9-14

Scale of the reporting organization, including:• Number of employees;• Net sales (for private sector organizations) or
net revenues (for public sector organizations);• Total capitalization broken down in terms ofdebt and equity (for private sector
organizations); and• Quantity of products or services provided.

Explanation of whether and how the
precautionary approach or principle isaddressed by the organization.

4.14

EC1

3. Report Parameters
Report Proﬁle

3.5

Main corresponding pages

Commitments to External Initiatives

Statement from the most senior decisionmaker ofthe organization (e.g., CEO, chair, or equivalentsenior position) about the relevance ofsustainability to the organization and its strategy.

2. Organizational Proﬁle2.7

Guideline items

Water sources signiﬁcantly affected bywithdrawal of water.
EN10 Percentage and total volume of water
recycled and reused.

Homepage
P40
Homepage

Biodiversity
EN12 Description of signiﬁcant impacts of activities,
products, and services on biodiversity inprotected areas and areas of high biodiversity
value outside protected areas.
EN14 Strategies, current actions, and future plans
for managing impacts on biodiversity.

P7-8
P7-8

Emissions, Efﬂuents, and Waste
P15

P15

P3

EN16 Total direct and indirect greenhouse gas
emissions by weight.
EN17 Other relevant indirect greenhouse gas
emissions by weight.

P29-30P29, 31, 33

EN18 Initiatives to reduce greenhouse gas
emissions and reductions achieved.
EN19 Emissions of ozone-depleting substances
by weight.
EN20 NO, SO, and other signiﬁcant air emissions
by type and weight.

P29, 31-32, 33

EN21 Total water discharge by quality and destination.

P40, homepage
P33, homepage
P40

EN22 Total weight of waste by type and disposal method.

P15

P29, 31, 33, homepage

EN23 Total number and volume of signiﬁcant spills.

P40, homepage
P40, homepage

Products and Services
EN26 Initiatives to mitigate environmental impacts
of products and services, and extent of
impact mitigation.

P38

EN27 Percentage of products sold and theirpackaging materials that are reclaimed bycategory.

P33

GRI Guidelines and the corresponding cross referenced pages
Guideline items

Main corresponding pages

Compliance
EN28 Monetary value of signiﬁcant ﬁnes and total
number of non-monetary sanctions fornoncompliance with environmental laws andregulations.

HomepageTransport
EN29 Signiﬁcant environmental impacts oftransporting products and other goods andmaterials used for the organization’s
operations, and transporting members of theworkforce.

P31

P37

Labor Practices and Decent Work
Performance Indicators
Employment
LA1

Total workforce by employment type,
employment contract, and region.

P41

Rates of injury, occupational diseases, lostdays, and absenteeism, and number ofworkrelated fatalities by region.

LA8

Education, training, counseling,
prevention,and risk-control programs inplace to assist workforce members, theirfamilies, or community members regarding
serious diseases.
Health and safety topics covered in formal
agreements with trade unions.

LA9

P23

HR2

HR5

Percentage of signiﬁcant suppliers andcontractors that have undergone screening
on human rights and actions taken.

P13

P25

SO3

Percentage of employees trained inorganization’s anti-corruption policies andprocedures.

P16-17SO4

Actions taken in response to incidents ofcorruption.

P17-18Public Policy
Public policy positions and participation in
public policy development and lobbying.

Back cover

Product Responsibility Performance Indicators
Customer Health and Safety
PR1

P23

Operations identiﬁed in which the right toexercise freedom of association and collective
bargaining may be at signiﬁcant risk, andactions taken to support these rights.

Society Performance Indicators
Corruption

P18, 22-23

Life cycle stages in which health and safety
impacts of products and services areassessed for improvement, and percentage
of signiﬁcant products and services
categories subject to such procedures.

P19-20

Product and Service Labeling
PR5

Training and Education
LA11 Programs for skills management and lifelong
learning that support the continued
employability of employees and assist themin managing career endings.
LA12 Percentage of employees receiving regularperformance and career development reviews.

Human Rights Performance Indicators
Investment and Procurement Practices

SO5

Occupational Health and Safety
LA7Main corresponding pages

Freedom of Association and Collective Bargaining

Overall
EN30 Total environmental protection expendituresand investments by type.

Guideline items

Practices related to customer satisfaction,
including results of surveys measuring
customer satisfaction.

P20

P21-22
P21

Diversity and Equal Opportunity
LA13 Composition of governance bodies andbreakdown of employees per category
according to gender, age group, minority groupmembership, and other indicators of diversity.

P22

Environmental Reporting Guidelines (Fiscal 2007 Version)and the corresponding cross referenced pages
Guideline items

Main corresponding pages

Guideline items

Main corresponding pages

Basic items

Environmental impact of Toyoda Gosei’s business activities and current situation with commitments for environmental impact reduction

P3-4
Basic requirements for the report
P1
Business conditions
P9-14
General overview of the environmental report
P3-4, 28-35, 40
Material balance in Toyoda Gosei’s business activities Homepage
Current situation of environmental administration such as environmental management
Current situation of environmental management
P28, 36-39
Current situation of compliance with environmental regulations P40, homepage
Environmental accounting information
P37
Current situation of supply chain management
P25, 36-37, 39
Current situation of green purchasing/procurement
P25
Current situation with R&D of DfE etc. for new environmentally-friendly technologies P31-35, 38
Current situation with environmentally-friendly transportation P31, 33
Current situation of the conservation of biodiversity and the sustainable use of biological resources
P7-8
Current situation with environmental communication
P20
Current situation of environment-related social contribution activities P26-27
Current situation of products/services to reduce environmental impacts P31-35, 38

Total energy input and measures for its reduction

Message from the president

P31, homepage
P31-32, homepage
Water resource input and measures for its reduction
Homepage
Quantity of recycled and reused materials within the operational area P33, homepage
Total production quantity and total product sales
P9-12, 41
Emission of greenhouse gases and measures for their reduction P29, 31-32, homepage
Air pollution and life environment loads and measures for their reduction P40, homepage
Emission and transference of chemical substances and measures for their reduction
P34, homepage
Total waste discharge and total ﬁnal waste disposal, and measures for their reduction P33, 40, homepage
Total water discharge and measures for its reduction
P34, homepage
Current related situation between environmental consideration and management
Current related situation between environmental consideration and management P28-30
Current situation of Toyoda Gosei’s social activities
Current situation of Toyoda Gosei’s social activities
P15-27
Total material input and measures for its reduction